Federal Reserve Bulletin, 1993-08

VOLUME 79 • NUMBER 8 • AUGUST 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 751 ANATOMY OF THE MEDIUM-TERM NOTE tee on Financial Institutions Supervision, MARKET Regulation and Deposit Insurance of the House Committee on Banking, Finance and Over the past decade, medium-term notes Urban Affairs, June 22, 1993. (MTNs) have emerged as major sources of funding for U.S. and foreign corporations, fed- 781 Governor LaWare discusses recent steps eral agencies, supranational institutions, and taken by the Federal Reserve, with the other sovereign countries. This article discusses the federal bank regulatory agencies, to reduce history and economics of the MTN market, regulatory burden on financial institutions and analyzes statistics on MTNs collected by the to facilitate an increased flow of credit, and Federal Reserve, and reviews recent develop- says that the Federal Reserve is highly senments in the U.S. and Euro-MTN markets. sitive to the matter of regulatory burden and seeks to avoid imposing unneccessary or ineffective requirements or constraints on the 769 INDUSTRIAL PRODUCTION AND banking system, before the Subcommittee on CAPACITY UTILIZATION FOR MAY 1993 Financial Institutions Supervision, Regulation Industrial production increased 0.2 percent in and Deposit Insurance of the House Commit- May, a rise that matched the revised gains for tee on Banking, Finance and Urban Affairs, March and April. Utilization of industrial June 29, 1993. capacity, at 81.6 percent, has been little changed since February. 788 ANNOUNCEMENTS Request for nominations for appointments to 772 STATEMENTS TO THE CONGRESS the Consumer Advisory Council. John P. LaWare, member, Board of Gover- Availability of services to facilitate the samenors, discusses issues associated with inter- day settlement of checks. state banking and says that interstate banking Availability of selected statistical data on promises wider household and business computer diskettes. choices at better prices and, for our banking system, increased competitive efficiency, the Proposed interagency rule to amend regulaelimination of unnecessary costs associated tions regarding real estate appraisals. with the delivery of banking services, and risk Publication of the Bank Holding Company reduction through diversification, before the Supervision Manual. Subcommittee on Financial Institutions Supervision, Regulation and Deposit Insurance of 793 LEGAL DEVELOPMENTS the House Committee on Banking, Finance and Urban Affairs, June 22, 1993. Various bank holding company, bank service corporation, and bank merger orders; and 777 Richard F. Syron, President, Federal Reserve pending cases. Bank of Boston, presents remarks on issues related to the ways that interstate banking can A1 FINANCIAL AND BUSINESS STATISTICS improve credit flows, and says that current restrictions on interstate banking and branch- These tables reflect data available as of ing are anachronistic, before the Subcommit- June 25, 1993. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Anatomy of the Medium-Term Note Market Leland E. Crabbe of the Board's Division of Most MTNs are noncallable, unsecured, senior Research and Statistics prepared this article. debt securities with fixed coupon rates and Joyce A. Payne, administrator of the Board's investment-grade credit ratings. In these features, survey of issuers of medium-term notes, provided MTNs are similar to investment-grade corporate assistance. Michael Schoenbeck provided research bonds. However, they have generally differed from assistance. bonds in their primary distribution process. MTNs have traditionally been sold on a best-efforts basis Over the past decade, medium-term notes (MTNs) by investment banks and other broker-dealers acthave emerged as a major source of funding for U.S. ing as agents. In contrast to an underwriter in the and foreign corporations, federal agencies, supra- conventional bond market, an agent in the MTN national institutions, and sovereign countries. U.S. market has no obligation to underwrite MTNs for corporations have issued MTNs since the early the issuer, and the issuer is not guaranteed funds. 1970s. At that time, the market was established as Also, unlike corporate bonds, which are typically an alternative to short-term financing in the com- sold in large, discrete offerings, MTNs are usually mercial paper market and long-term borrowing in sold in relatively small amounts either on a continthe bond market; thus the name "medium term." uous or on an intermittent basis. Through the 1970s, however, only a few corpora- Borrowers with MTN programs have great flexitions issued MTNs, and by 1981 outstandings bility in the types of securities they may issue. As amounted to only about $800 million. In the 1980s, the market for MTNs has evolved, issuers have the U.S. MTN market evolved from a relatively taken advantage of this flexibility by issuing MTNs obscure niche market dominated by the auto with less conventional features. Many MTNs are finance companies into a major source of debt now issued with floating interest rates or with rates financing for several hundred large corporations. In that are computed according to unusual formulas the 1990s, the U.S. market has continued to attract tied to equity or commodity prices. Also, many a diversity of new borrowers, and outside the include calls, puts, and other options. Furthermore, United States, the Euro-MTN market has grown at maturities are not necessarily "medium term"— a phenomenal rate. By year-end 1992, outstanding they have ranged from nine months to thirty years MTNs in domestic and international markets stood and longer. Moreover, like corporate bonds, MTNs at an estimated $283 billion (table 1). are now often sold on an underwritten basis, and offering amounts are occasionally as large as those 1. Size of the worldwide medium-term note market, of bonds. Indeed, rather than denoting a narrow year-end 1992 security with an intermediate maturity, an MTN is Billions of dollars more accurately defined as a highly flexible debt Amount Market sector outstanding, instrument that can easily be designed to respond year-end 1992 to market opportunities and investor preferences. Total 283 The emergence of the MTN market has trans- U.S. market 223 formed the way that corporations raise capital and Public MTNs of U.S. corporations 176 that institutions invest. In recent years, this trans- Federal agency and others 16 Private placements 31 formation has accelerated because of the develop- International markets 60 ment of derivatives markets, such as swaps, Euro-MTNs 50 options, and futures, that allow investors and bor- Foreign domestic markets 10 rowers to transfer risk to others in the financial SOURCES. Merrill Lynch & Co., Websters Communications International, system who have different risk preferences. A Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 Federal Reserve Bulletin • August 1993 growing number of transactions in the MTN mar- issuance and to provide secondary market liquidity. ket now involve simultaneous transactions in a By 1984, the captive finance companies of the derivatives market. three large automakers had at least two agents for This article discusses the history and economics their MTN programs. The ongoing financing of the MTN market, analyzes statistics on MTNs requirements of these companies and the competicollected by the Federal Reserve, and reviews tion among agents established a basis for the marrecent developments in the U.S. and Euro-MTN ket to develop. Because investment banks stood markets.1 ready to buy back MTNs in the secondary market, investors became more receptive to adding MTNs to their portfolio holdings. In turn, the improved BACKGROUND OF THE MTN MARKET2 liquidity and consequent reduction in the cost of issuance attracted new borrowers to the market. General Motors Acceptance Corporation (GMAC) Second, the adoption by the SEC of Rule 415 in created the MTN market in the early 1970s as an March 1982 served as another important instituextension of the commercial paper market. To tional change. Rule 415 permits delayed or continimprove their asset-liability management, GMAC uous issuance of so-called shelf registered corpoand the other auto finance companies needed to rate securities. Under shelf registrations, issuers issue debt with a maturity that matched that of their register securities that may be sold for two years auto loans to dealers and consumers. However, after the effective date of the registration without underwriting costs made bond offerings with short the requirement of another registration statement maturities impractical, and maturities on commer- each time new offerings are made. Thus, shelf cial paper cannot exceed 270 days. The auto registration enables issuers to take advantage of finance companies therefore began to sell MTNs brief periods of low interest rates by selling previdirectly to investors. In the 1970s, the growth of ously registered securities on a moment's notice. In the market was hindered by illiquidity in the sec- contrast, debt offerings that are not made from ondary market and by securities regulations requir- shelf registrations are subject to a delay of at least ing approval by the Securities and Exchange Com- forty-eight hours between the filing with the SEC mission (SEC) of any amendment to a registered and the subsequent offering to the public. public offering. The latter, in particular, increased The ability of borrowers to sell a variety of debt the costs of issuance significantly because borrow- instruments with a broad range of coupons and ers had to obtain the approval of the SEC each time maturities under a single prospectus supplement is they changed the posted coupon rates on their another advantage of a shelf-registered MTN pro- MTN offering schedule. To avoid this regulatory gram. Indeed, a wide array of financing options hurdle, some corporations sold MTNs in the pri- have been included in MTN filings.3 For example, vate placement market. MTN programs commonly give the borrower the In the early 1980s, two institutional changes set choice of issuing fixed- or floating-rate debt.4 Furthe stage for rapid growth of the MTN market. thermore, several "global" programs allow for First, in 1981 major investment banks, acting as placements in the U.S. market or in the Euroagents, committed resources to assist in primary market. Other innovations that reflect the specific funding needs of issuers include MTNs collateralized by mortgages issued by thrift institutions, 1. The Federal Reserve Board conducts a survey of borrowing by U.S. corporations in the public MTN market, the largest sector of the worldwide market. The Federal Reserve collects these data 3. For example, MTNs have been callable, putable, and extendto improve its estimates of new securities issues of U.S. corpora- ible; they have had zero coupons, step-down or step-up coupons, or tions, as published in the Federal Reserve Bulletin, and to improve inverse floating rates; and they have been foreign currency denomestimates of corporate securities outstanding, as shown in the flow inated or indexed, and commodity indexed. of funds accounts. 4. The most common indexes for floating-rate MTNs are the 2. Material in this and the next two sections was originally following: the London interbank offered rate (LIBOR), commercial presented in "Corporate Medium-Term Notes," Leland Crabbe, paper, Treasury bills, federal funds, and the prime rate. MTN The Continental Bank Journal of Applied Corporate Finance, programs typically give the issuer the option of making floatingvol. 4 (Winter 1992), pp. 90-102. rate interest payments monthly, quarterly, or semiannually. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 753 2. An offering rate schedule for a medium-term note program Medium-term notes YYiieelldd sspprreeaadd Treasury securities ooff MMTTNN oovveerr TTrreeaassuurryy Maturity range Yield sseeccuurriittiieess Maturity Yield (percent) ((bbaassiiss ppooiinnttss)) (percent) 9 months to 12 months (') (') 9 months 3.35 12 months to 18 months (') (') 12 months 3.50 18 months to 2 years .. 0) (') 18 months 3.80 2 years to 3 years 4.35 35 2 years 4.00 3 years to 4 years 5.05 55 3 years 4.50 4 years to 5 years 5.60 60 4 years 5.00 5 years to 6 years 6.05 60 5 years 5.45 6 years to 7 years 6.10 40 6 years 5.70 7 years to 8 years 6.30 40 7 years 5.90 8 years to 9 years 6.45 40 8 years 6.05 9 years to 10 years 6.60 40 9 years 6.20 10 years 6.70 40 10 years 6.30 1. No rate posted. equipment trust certificates issued by railways, declares the registration statement effective, the amortizing notes issued by leasing companies, and borrower files a prospectus supplement that subordinated notes issued by bank holding compa- describes the MTN program. The amount of debt nies. Another significant innovation has been the under the program generally ranges from $100 mildevelopment of asset-backed MTNs, a form of lion to $1 billion. After establishing an MTN proasset securitization used predominantly to finance gram, a borrower may enter the MTN market contrade receivables and corporate loans. This flexibil- tinuously or intermittently with large or relatively ity in types of instruments that may be sold as small offerings. Although underwritten corporate MTNs, coupled with the market timing benefits of bonds may also be issued from shelf registrations, shelf registration, enables issuers to respond readily MTNs provide issuers with more flexibility than to changing market opportunities. traditional underwritings in which the entire debt In the early and mid-1980s, when finance compa- issue is made at one time, typically with a single nies dominated the market, most issues of MTNs coupon and a single maturity. were fixed rate, noncallable, and unsecured, with The registration filing usually includes a list of maturities of five years or less. In recent years, as the investment banks with which the corporation new issuers with more diverse financing needs has arranged to act as agents to distribute the notes have established programs, the characteristics of to investors. Most MTN programs have two to four new issues have become less generic. For example, agents. Having multiple agents encourages compematurities have lengthened as industrial and utility tition among investment banks and thus lowers companies with longer financing needs have financing costs. The large New York-based investentered the market. Indeed, frequent placements ment banks dominate the distribution of MTNs. of notes with thirty-year maturities have made Through its agents, an issuer of MTNs posts the designation "medium term" something of a offering rates over a range of maturities: for exammisnomer. ple, nine months to one year, one year to eighteen months, eighteen months to two years, and annually thereafter (see table 2). Many issuers post rates MECHANICS OF THE MARKET as a yield spread over a Treasury security of comparable maturity. The relatively attractive yield The process of raising funds in the public MTN spreads posted at the maturities of three, four, and market usually begins when a corporation files a five years shown in table 2 indicate that the issuer shelf registration with the SEC.5 Once the SEC desires to raise funds at these maturities. The investment banks disseminate this offering rate information to their investor clients. When an in- 5. SEC-registered MTNs have the broadest market because they vestor expresses interest in an MTN offering, the have no resale or transfer restrictions and generally fit within an agent contacts the issuer to obtain a confirmation of investor's investment guidelines. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 Federal Reserve Bulletin • August 1993 the terms of the transaction. Within a maturity cost, flexibility, and other advantages of each range, the investor has the option of choosing the security.7 The growth of the MTN market indicates final maturity of the note sale, subject to agreement that MTNs offer advantages that bonds do not. by the issuing company. The issuer will lower its However, most companies that raise funds in the posted rates once it raises the desired amount of MTN market have also continued to issue corpofunds at a given maturity. In the example in table 2, rate bonds, suggesting that each form of debt has the issuer might lower its posted rate for MTNs advantages under particular circumstances. with a five-year maturity to 40 basis points over comparable Treasury securities after it sells the desired amount of debt at this maturity. Of course, Offering Size, Liquidity, and Price issuers also change their offering rate scales in Discrimination response to changing market conditions. Issuers may withdraw from the market by suspending sales The amount of the offering is the most important or, alternatively, by posting narrow offering spreads determinant of the cost differential between the at all maturity ranges. The proceeds from primary MTN and corporate bond markets. For large, stantrades in the MTN market typically range from dard financings (such as $300 million of straight $1 million to $25 million, but the size of transac- debt with a ten-year maturity) the all-in interest tions varies considerably.6 After the amount of cost to an issuer of underwritten corporate bonds registered debt is sold, the issuer may "reload" its may be lower than the all-in cost of issuing MTNs. MTN program by filing a new registration with the This cost advantage arises from economies of scale SEC. in underwriting and, most important, from the Although MTNs are generally offered on an greater liquidity of large issues. As a result, corpoagency basis, most programs permit other means of rations that have large financing needs for a spedistribution. For example, MTN programs usually cific term usually choose to borrow with bonds. allow the agents to acquire notes for their own From an empirical point of view, the liquidity account and for resale at par or at prevailing market premium, if any, on small offerings has yet to be prices. MTNs may also be sold on an underwritten quantified. Nevertheless, the sheer volume of basis. In addition, many MTN programs permit the financing in the MTN market suggests that any borrower to bypass financial intermediaries by sell- liquidity premium that may exist for small offering debt directly to investors. 7. Apart from the distribution process, MTNs have several less THE ECONOMICS OF MTNS AND significant features that distinguish them from underwritten corporate bonds. First, MTNs are typically sold at par, while traditional CORPORATE BONDS underwritings are frequently sold at slight discounts or premiums to par. Second, the settlement for MTNs is in same-day funds, whereas In deciding whether to finance with MTNs or with corporate bonds generally settle in next-day funds. Although MTNs bonds, a corporate borrower weighs the interest with long maturities typically settle five business days after the trade date (as is the convention in the corporate bond market), MTNs with short maturities sometimes have a shorter settlement 6. Financing strategies vary among the borrowers. Some corpo- period. rate treasurers prefer to "go in for size" on one day with financings Finally, semiannual interest payments to noteholders are typiin the $50 million to $100 million range, reasoning that smaller cally made on a fixed cycle without regard to the offering date or offerings are more time consuming. Furthermore, a firm may be the maturity date of the MTN; in contrast, corporate bonds typiable to maintain a "scarcity value" for its debt by financing cally pay interest on the first or fifteenth day of the month at intermittently with large offerings, rather than continuously with six-month and annual intervals from the date of the offering. The small offerings. Other treasurers prefer to raise $50 million to interest payment convention in the MTN market usually results in a $100 million over the course of several days with $2 million to short or a long first coupon and in a short final coupon. Consider, $10 million drawdowns. These corporate treasurers argue that a for example, an MTN program that pays interest on March 1 and daily drawdown of $50 million is an indication that they should September 1 and at maturity of the notes. A $100,000 MTN sold on have posted a lower offering rate. In regard to the posting of May 1 with a 9 percent coupon and a fifteen-month maturity from offering rates, some treasurers post an absolute yield, while others such a program would distribute a "short" first coupon of $3,000 post a spread over Treasuries, usually with a cap on the absolute on September 1, a full coupon of $4,500 on March 1, and a "short" yield. A few active borrowers typically post rates daily in several final coupon of $3,750 plus the original principal on August 1 of maturity sectors; less active borrowers post only in the maturity the following year. Like corporate bonds, interest on fixed-rate sector in which they seek financing and suspend postings when MTNs is calculated on the basis of a 360-day year of twelve 30-day they do not require funds. months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 755 ings is not a significant deterrent to financing. The flexibility of continuous offerings also plays According to market participants, the interest cost a role in a corporation's decision to finance with differential between the markets has narrowed in MTNs. With MTNs, a corporation can "average recent years as liquidity in the MTN market has out" its cost of funds by issuing continuously rather improved. Many borrowers estimate that the pre- than coming to market on a single day. Therefore, mium is now only about 5 to 10 basis points.8 even if bond offerings have lower average yields, a Furthermore, many borrowers believe that risk-averse borrower might still elect to raise funds financing costs are slightly lower in the MTN mar- in the MTN market with several offerings in a ket because its distribution process allows borrow- range of $5 million to $10 million over several ers to price discriminate. Consider a stylized exam- weeks, rather than with a single $100 million bond ple of a company that needs to raise $100 million. offering. With a bond offering, the company may have to The flexibility of the MTN market also allows raise the offering yield significantly, for example, borrowers to take advantage of funding opportunifrom 6 percent to 6.25 percent, to place the final ties. By having an MTN program, an issuer can $10 million with the marginal buyer. In contrast, raise a sizable amount of debt in a short time; with MTNs the company could raise $90 million often, the process takes less than half an hour. by posting a yield of 6 percent; to raise the addi- Bonds may also be sold from a shelf registration, tional $10 million, the company could increase its but the completion of the transaction may be MTN offering rates or issue at a different maturity. delayed by the arrangement of a syndicate, the Consequently, because all of the debt does not have negotiation of an underwriting agreement, and the to be priced to the marginal buyer, financing costs "pre-selling" of the issue to investors. Furthercan be lower with MTNs. more, some corporations require that underwritten offerings receive prior approval by the president of the company or the board of directors. In contrast, The Flexibility of MTNs a corporate treasurer may finance with MTNs without delay and at his or her discretion.9 Even if conventional bonds enjoy an interest cost advantage, this advantage may be offset by the flexibility that MTNs afford. Offerings of Discreet Funding with MTNs investment-grade straight bonds are clustered at standard maturities of two, three, five, seven, ten, The MTN market also provides corporations with and thirty years. Also, because the fixed costs of the ability to raise funds discreetly because the underwritings make small offerings impractical, issuer, the investor, and the agent are the only corporate bond offerings rarely amount to less than market participants that have to know about a pri- $100 million. These institutional conventions im- mary transaction. In contrast, the investment compede corporations from implementing a financing munity obtains information about underwritten policy of matching the maturities of assets with bond offerings from a variety of sources. those of liabilities. By contrast, drawdowns from Corporations often avoid the bond market in MTN programs over the course of a month typi- periods of heightened uncertainty about interest cally amount to $30 million, and these drawdowns rates and the course of the economy, such as the frequently have different maturities and special fea- period after the 1987 stock market crash. Undertures that are tailored to meet the needs of the writings at such times could send a signal of finanborrower. This flexibility of the MTN market allows companies to match more closely the maturities of assets and liabilities. 9. The administrative costs may be lower with MTNs than with bonds. After the borrower and the investor have agreed to the terms 8. Commissions to MTN agents typically range from 0.125 per- of a transaction in the MTN market, the borrower files a one-page cent to 0.75 percent of the principal amount of the note sale, pricing supplement with the SEC, stating the sale date, the rate of depending on the stated maturity and the credit rating assigned at interest, and the maturity date of the MTN. In contrast, issuers of the time of issuance. Fees to underwriters of bond offerings are corporate bonds sold from shelf registrations are required to file a somewhat higher. prospectus supplement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 Federal Reserve Bulletin • August 1993 cial distress to the market. Similarly, corporations provide data on the amount of their outstandings. in distressed industries, such as commercial bank- The data on gross issuance begin in January 1983, ing in the second half of 1990, can use the MTN and the data on outstandings have been collected market to raise funds quietly rather than risk nega- since year-end 1989. The Federal Reserve obtains tive publicity in the high profile bond market. Thus, information on new programs from announcements during periods of financial turmoil, the discreet of SEC Rule 415 registrations and contacts with nature of the MTN market makes it an attractive MTN agents. alternative to the bond market. Because the participation rate in the Federal Reserve survey is 100 percent, it provides an accurate measure of the volume of MTN financing by "Reverse Inquiry" in the MTN market U.S. corporations in the U.S. public market. However, while the U.S. corporate sector is the largest Another advantage of MTNs is that investors often segment of the MTN market, MTNs have been play an active role in the issuance process through issued in other markets and by non-U.S. corporathe phenomenon known as "reverse inquiry." For tions. For example, several U.S. corporations have example, suppose an investor desires to purchase issued MTNs in the Euro-market. Also, the survey $15 million of A-rated finance company debt with does not include MTNs issued in the U.S. public a maturity of six years and nine months. While market by government-sponsored agencies, such as such a security may not be available in the corpo- the Federal National Mortgage Association, by rate bond market, the investor may be able to supranational institutions, and by non-U.S. corporaobtain it in the MTN market through reverse tions. Furthermore, although the database includes inquiry. In this process, the investor relays the MTNs issued by bank holding companies, it does inquiry to an issuer of MTNs through the issuer's not include deposit notes and bank notes offered by agent. If the issuer finds the terms of the reverse banks because these securities are exempt from inquiry sufficiently attractive, it may agree to the SEC registration. Perhaps most important, the datatransaction even if it was not posting rates at the base does not include privately placed MTNs. The maturity that the investor desires. private placement market is particularly attractive According to market participants, trades that to issuers who wish to gain access to U.S. investors stem from reverse inquiries account for a signifi- without having to obtain SEC approval for a public cant share of MTN transactions. Reverse inquiry offering. According to MTN agents, non-U.S. cornot only benefits the issuer by reducing borrowing porations are the largest borrowers in the market costs but also allows investors to use the flexibility for privately placed MTNs. Because the financing of MTNs to their advantage. In response to investor costs are usually lower in the public market than in preferences, MTNs issued under reverse inquiry the less liquid private market, most U.S. corporaoften include embedded options and frequently pay tions choose to issue public, SEC-registered MTNs. interest according to unusual formulas. This responsiveness of the MTN market to the needs of investors is one of the most important factors driv- Issuance Volume and Industry of the Issuers ing the growth and acceptance of the market. From 1983 through 1992, the volume of MTN issuance in the public market increased in each THE FEDERAL RESERVE BOARD'S SURVEY year, rising from $5.5 billion in 1983 to $74.2 bil- OF US. CORPORATE MTNS lion in 1992, and totaled $330 billion over the ten-year period (table 3). Similarly, the number of The Federal Reserve surveys U.S. corporations with borrowers increased from 12 in 1983 to 208 in MTN programs. These companies provide data on 1992, and totalled 402 corporations for the period a confidential basis on the amount of MTNs they (table 3). issue; respondents report monthly, quarterly, or an- Borrowers in the MTN market span a wide array nually depending on how active they are in the of industry groups. In the financial sector, major market. At year-end, all MTN issuers are asked to borrowers include auto finance companies, bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 757 3. Gross borrowing by U.S. corporations in the U.S. medium-term note market, 1983-92 Total, 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1983-92 Type of issuer Amounts in million of dollars All U.S. Corporations 5,459 10,252 13,488 19,811 23,153 30,676 34,008 46,617 71,918 74,162 329,543 Financial 5,431 9,896 12,175 16,715 20,338 22,232 26,294 29,936 45,773 50,551 239,341 Auto finance companies 4,750 6,800 6,688 8,854 9,930 6,699 8,575 9,874 12,380 13,450 88,000 Banking Firms 75 885 1,991 2,120 2,258 3,795 3,610 3,162 11,157 6,553 35,606 Finance companies1 591 2,111 2,624 3,038 4,674 6,562 8,500 12,289 14,802 18,656 73,847 Real estate, insurance and other financial companies 0 0 0 152 384 677 900 1,186 1,027 1,084 5,410 Savings and loans 0 90 307 1,404 1,396 2,651 2,312 25 0 67 8,252 Securities brokers 15 10 565 1,148 1,695 1,848 2,397 3,399 6,408 10,741 28,227 Nonfinancial corporations 28 356 1,313 3,095 2,815 8,444 7,713 16,681 26,145 23,610 90,202 Electric, gas and water 0 0 143 344 494 1,485 2,706 3,221 5,143 7,535 21,069 Manufacturing 0 163 848 2,103 1,064 2,593 2,570 6,497 12,503 9,130 37,471 Services 20 186 191 535 691 1,926 961 1,237 2,409 1,747 9,901 Telephone and communication 0 0 0 0 189 514 84 1,221 1,373 1,635 5,015 Transportation, mining, and construction 0 0 25 38 81 752 578 1,933 1,800 1,018 6,225 Wholesale and retail trade ... 8 8 107 75 296 1,175 815 2,573 2,918 2,546 10,520 Number of issuers All U.S. corporations 12 34 52 72 86 132 138 165 223 208 402 Financial 10 29 41 50 61 80 72 65 76 65 155 Nonfinancial 2 5 11 22 25 52 66 100 147 143 247 Number of new issuers 12 22 23 30 42 59 50 56 66 42 402 Financial 10 19 15 15 27 26 14 11 11 7 155 Nonfinancial 2 3 8 15 15 33 36 45 55 35 247 1. Other than auto finance companies. holding companies, business and consumer credit MTNs for the first time, and most of the new institutions, and securities brokers. In the nonfinan- entrants have been nonfinancial companies. In cial sector, participants in the MTN market include 1991, for example, sixty-six new borrowers entered utilities, telephone companies, manufacturers, ser- the market, of which fifty-five were nonfinancial vice firms, and wholesalers and retailers. Within companies. As a result of this trend, in each year industry groups, the auto finance companies have beginning in 1990, the total number of nonfinancial been the heaviest borrowers, raising $88 billion firms issuing MTNs has exceeded the total number over the period. In relative terms, however, issu- of financial issuers. ance by auto finance companies declined from an 87 percent share of the MTN market in 1983 to The Volume of Corporate MTNs Outstanding 18 percent in 1992. and the Components of Net Borrowing In the early to mid-1980s, financial companies dominated the MTN market. Indeed, in 1983, only Outstanding MTNs and issuer use of MTN two nonfinancial companies issued MTNs, and they programs have increased sharply since 1989. In accounted for less than 1 percent of the issuance the aggregate, outstanding MTNs increased volume. In recent years, however, nonfinancial from $76 billion in 1989 to $176 billion in 1992 companies have increased their share of the mar- (table 4). Over this period, outstandings of nonket, and from 1990 through 1992, they accounted financial firms increased from $18.5 billion to for about one-third of MTN issuance. $67.6 billion, while outstandings of financial corpo- The increase in the volume of MTN issuance rations increased from $57.5 billion to $108.2 bilreflects a dramatic increase in the number of new lion. For individual firms, outstandings of MTNs borrowers in the market. In each year from 1984 averaged $504 million in 1992, compared with through 1992, at least twenty companies issued $350 million in 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 Federal Reserve Bulletin • August 1993 4. Medium-term notes outstanding, 1989-92 5. Analysis of net borrowing in the corporate Millions of dollars medium-term note market, 1990-92 Millions of dollars Year-end MMaarrkkeett sseeccttoorr Year over year 1989 1990 1991 1992 NNeett bboorrrroowwiinngg,, bbyy ttyyppee ooff bboorrrroowweerr 1990 1991 1992 Total outstanding 76,016 100,040 142,316 175,782 Total net borrowing Financial 57,505 69,146 89,823 108,180 All U.S. corporations 24,024 42,275 33,466 Nonfinancial 18,511 30,894 52,493 67,602 Financial 11,641 20,677 18,357 Nonfinancial 12,382 21,599 15,109 Average outstanding ... 350 383 453 504 Financial 504 591 788 925 Net borrowing by new entrants Nonfinancial 180 215 262 291 All U.S. corporations 8,070 9,711 5,983 Financial 2,341 1,926 526 Nonfinancial 5,729 7,785 5,457 The data on net borrowing, that is, the year-over- Net borrowing by existing issuers All U.S. corporations 15,953 32,565 27,482 year change in outstandings, can be dissected to Financial 9,300 18,751 17,831 determine the sources of growth in the market. For Nonfinancial 6,653 13,814 9,652 the market as a whole, new entrants accounted for MEMO: Ratio of net borrowing by new entrants to total about one-third of net borrowing in 1990, one- net borrowing fourth of net borrowing in 1991, and less than All U.S. corporations .336 .230 .179 Financial .201 .093 .029 one-fifth in 1992 (table 5). Thus, firms that had Nonfinancial .463 .360 .361 already issued MTNs accounted for most of the recent growth in the market. In the financial sector, in particular, new entrants accounted for only a as the ratings on new offerings because of the small proportion of the growth, simply because a preponderance of rating downgrades in recent large share of the financial firms that could enter years. Nevertheless, 98 percent of outstanding the MTN market did so in the 1980s. Among MTNs were rated investment grade at year-end nonfinancial firms, in contrast, new entrants have 1992 (table 7). continued to fuel a significant share of the growth in the market. Maturities and Yield Spreads Credit Ratings Maturities on MTNs reflect the financing needs of the borrowers. Financial firms tend to issue MTNs The corporations issuing MTNs have had high with maturities matched to the maturity of loans credit ratings. Since 1983, more than 99 percent of made to their customers. Consequently, in the MTNs have been rated investment grade (Baa or financial sector, maturities are concentrated in a higher) at the time of issuance (table 6). In 1992, range of one to five years, and only a small propor- $51 billion of the $74 billion in MTN offerings tion are longer than ten years (chart 1). Nonfinanwere rated single A, and six firms, issuing a total of cial firms, in contrast, often use MTNs to finance $540 million, had Ba ratings. Outstanding MTNs long-lived assets, such as plant and equipment. As also tend to have high credit ratings, but not as high a result, maturities on MTNs issued by nonfinan- 6. Ratings distribution of medium-term note issuance, 1983-92 Millions of dollars Total Ratings by Moody's 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 issuance, Investors Service 1983-92 Aaa 0 90 124 789 1,585 2,651 2,745 1,635 4,250 2,966 16,834 Aa 2,693 5,236 7,740 10,117 11,908 10,129 9,722 14,920 5,441 6,381 84,288 A 883 3,829 4,426 6,607 7,469 11,735 16,333 23,731 51,489 50,513 177,015 Baa 1,883 216 1,198 1,799 1,919 5,596 5,098 6,331 10,593 13,762 48,395 Ba 0 882 0 498 273 565 109 0 145 540 3,011 B 0 0 0 0 0 0 0 0 1 0 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 759 7. Ratings distribution of medium-term notes outstanding, 1989-92 Millions of dollars Year-end outstandings Net change Ratings by Moody'i Investors Service 1990 1991 1992 1991 1992 Aaa 5,918 5,416 6,715 6,077 -502 1,299 -638 Aa 23,069 30,879 8,753 13,137 7,809 -22,126 4,384 A 35,208 45,874 100,757 89,205 10,666 54,883 11,552 Baa 9,491 16,675 22,827 64,009 7,184 6,152 41,182 Ba 1,448 1,066 2,556 2,851 -381 1,490 295 B 112 20 183 53 -92 163 -130 Caa or lower 770 110 525 450 415 -75 rial corporations cover a wider range, and in 1992, The Relative Size of the MTN market 25 percent to 30 percent were longer than ten years. Yields on fixed-rate MTNs, commonly quoted as The MTN market accounts for a significant share a yield spread over a Treasury security of compara- of borrowing by U.S. corporations. One measure of ble maturity, reflect the credit risk of the borrower. the size of the market is the ratio of outstanding Other factors held constant, Baa-rated MTNs have MTNs to the amount of outstanding public debt higher yield spreads than A-rated MTNs, which in (MTNs plus public corporate bonds). According to turn have higher yield spreads than Aa-rated MTNs this definition of market share, MTNs accounted (chart 2). Yield spreads also vary over time, partic- for 16 percent of public corporate debt in 1992, ularly over the course of the business cycle. compared with 9 percent in 1989 (table 8). This Spreads on A-rated MTNs increased from 60 basis ratio understates the size of the MTN market, howpoints over Treasury securities in July 1990, a ever, because the market is still relatively new, and cyclical trough, to 140 basis points in January outstandings are growing rapidly. 1991.10 An alternative measure of the size of the market is the volume of investment-grade MTN issuance as a percentage of total investment-grade debt issuance (MTNs plus underwritten straight bonds). By 10. These yield spreads are estimated using the model presented in Leland E. Crabbe and Christopher M. Turner, "A Dynamic this definition, the share of investment-grade debt Linear Model of the Determinants of Yield Spreads on Fixed- issued as MTNs rose from 18 percent in 1983 to a Income Securities," (Board of Governors of the Federal Reserve peak of 42 percent in 1990 (table 9). In 1992, the System, working paper, June 1993). 1. Distribution of maturities of corporate medium-term 2. Yield spreads between two-year medium-term notes notes, 1992 of financial companies and two-year Treasury notes, Percent of total selected ratings, October 1987-December 1992 Basis points 250 Baa 200 [ AS I 150 jf pta\ a J \ \ A/~100 \jJSfy-— 50 9 2 3 4-5 6-7 8-10 11-15 16-20 21-30 | AAA | months- years years years years years years years years 1 1 'year 1988 1989 1990 1991 1992 SOURCE. Merrill Lynch. Data are weekly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 Federal Reserve Bulletin • August 1993 8. Ratio of medium-term notes outstanding to the sum term interest rates. However, some of the growth of of medium-term notes and corporate bonds the MTN market reflects a secular decline in the outstanding, 1989-92 role of banks as financial intermediaries. Percent Market sector 1989 1990 1991 1992 RECENT DEVELOPMENTS All U.S. corporate MTNs IN THE MTN MARKET and bonds 9 11 14 16 Financial 28 31 33 32 Nonfinancial 3 5 7 9 In recent years several changes have occurred in All U.S. corporate MTNs and the MTN market as a result of innovations in other bonds with investmentgrade ratings 12 14 17 19 capital markets. Among the most important Financial 29 34 34 33 Nonfinancial 4 6 9 11 changes in the MTN market are the increasing use of "structured" MTNs, the increasing participation SOURCE. For corporate bond outstandings, Moody's Investors Service. Both Moody's and Federal Reserve figures exclude private placements, by banking organizations in the market, and the asset-backed securities, bonds issued by federal agencies, Eurobonds, and development of a system for book-entry clearing Yankee bonds. Moody's figures include convertible bonds. and settlement of MTN transactions. Also, foreign corporations have begun to use the MTN market ratio fell to 37 percent, a decline that mainly more frequently since the adoption of SEC Rule reflects the heavy volume of refinancing in the 144A in April 1990. corporate bond market, especially in the nonfinancial sector. This ratio of debt issuance may overestimate the size of the MTN market because Structured MTNs MTNs typically have shorter maturities than corporate bonds. In recent years, an increasing share of MTNs have MTNs represent an increasingly important been issued as part of structured transactions. In source of credit to nonfinancial corporations, as a structured MTN, a corporation issues an MTN companies have shifted funding from alternative and simultaneously enters into one or several swap credit markets. In general, nonfinancial corpora- agreements to transform the cash flows that it is tions that borrow in the MTN market have access obligated to make. The simplest type of structured to other major credit markets: corporate bonds, MTN involves a "plain vanilla" interest rate swap. commercial paper, bank loans, and privately placed In such a financing, a corporation might issue a bonds. From 1989 through 1992, net borrowing by three-year, floating-rate MTN that pays LIBOR nonfinancial corporations in the MTN market plus a premium semiannually. At the same time, increased $49 billion, while borrowing in the other the corporation negotiates a swap transaction in four markets increased an estimated $102 billion which it agrees to pay a fixed rate of interest (table 10). Notably, corporate borrowing in the semiannually for three years in exchange for public bond market rose $100 billion, while bor- receiving LIBOR from a swap counterparty. As a rowing at banks fell $35 billion. The shift to long- result of the swap, the borrower has synthetically term financing (MTNs and bonds) over this period created a fixed-rate note because the floating-rate is a typical, cyclical phenomenon that occurs in payments are offsetting. (See the box for an outline periods of slow economic growth and falling long- of this transaction.) 9. Ratio of medium-term note issuance to the sum of medium-term note and corporate bond issuance, 1983-92 Percent 1992 37 58 21 1. In the ratio, the volume of issuance of MTNs and corporate bonds does not include speculative-grade bonds, convertible bonds, federal agency bonds, asset-backed securities, or private placements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 761 10. Funding by nonfinancial corporations in major to borrow at a lower rate than it would pay on a domestic credit markets, 1989-92 fixed-rate note. Indeed, most MTN issuers decline Billions of dollars to participate in structured financings unless they Outstandings at year-end NNeett cchhaannggee reduce borrowing costs at least 10 or 15 basis MMaarrkkeett ffrroomm points. Issuers demand this compensation because, 1989 1992 11998899 ttoo 11999922 compared with conventional financings, structured Medium-term notes 18.5 67.6 49.1 financings involve additional expenses, such as Public bonds 607.5 707.9 100.3 Commercial paper 107.1 108.3 1.2 legal and accounting costs and the cost of evaluat- Bank loans 553.5 518.8 -34.7 ing and monitoring the credit risk of the swap Privately placed bonds ... 265.0 300.0 35.0 counterparty. For complicated structured transac- SOURCE. For all series except public bonds, Federal Reserve Board; for tions, most issuers require greater compensation. public bonds, Moody's Investors Service. Many structured transactions originate with investors through a reverse inquiry. This process At first glance, structured transactions seem begins when an investor has a demand for a secuneedlessly complicated. A corporation could simrity with specific risk characteristics. The desired ply issue a fixed-rate MTN. However, as a result of security may not be available in the secondary the swap transaction, the corporation may be able market, and regulatory restrictions or bylaws prohibit some investors from using swaps, options, or futures to create synthetic securities. Through a A Structured Transaction in the Medium-Term Note reverse inquiry, an investor will use MTN agents to Market Involving an Interest Rate Swap communicate its desires to MTN issuers. If an issuer agrees to the inquiry, the investor will obtain At time 0, an MTN issuer sells a three-year, $50 million a security that is custom-tailored to its needs. The MTN that pays LIBOR plus 15 basis points semiannually. specific features of these transactions vary in At the same time, the issuer agrees to an interest rate swap. response to changes in market conditions and investor preferences. For example, in 1991 many Payment obligations investors desired securities with interest rates that $50 million at time 0 varied inversely with short-term market interest for the floating-rate MTN MTN rates. In response to investor inquiries, several cor- LIBOR + 15 basis points investor porations issued "inverse floating-rate" MTNs that semiannually, and $50 million • MTN in three years paid an interest rate of, for example, 12 percent issuer - LIBOR semiannually - minus LIBOR. At the time of the transaction, the Swap issuers of inverse floating-rate MTNs usually Fixed rate (for example, 5 percent) • counterparty entered into swap transactions to eliminate their semiannually exposure to falling interest rates. While structured transactions in the MTN market often originate with investors, investment banks The combination of the swap and the MTN result in the also put together such transactions. Most investfollowing semiannual cash flows for the MTN issuer: ment banks have specialists in derivative products Cash flows who design securities to take advantage of temporary market opportunities. When an investment - (LIBOR + 15 basis points) x $50 million bank identifies an opportunity, it will inform inves- + (LIBOR) x $50 million tors and propose that they purchase a specialized - (5 percent) x $50 million security. If an investor tentatively agrees to the transaction, the MTN agents in the investment bank obligation = 5.15 percent on $50 million will contact an MTN issuer with the proposed structured transaction. Because the floating-rate payments are offsetting, the Most investors require that issuers of structured MTN issuer has created a synthetic, fixed-rate note that MTNs have triple-A or double-A credit ratings. By pays 5.15 percent on $50 million for three years. dealing with highly rated issuers, the investor Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 Federal Reserve Bulletin • August 1993 reduces the possibility that the value of the struc- (3) LIBOR differential notes, which pay interest tured MTN will vary with the credit quality of the tied to the spread between, say, deutsche mark issuer. In limiting credit risk, the riskiness of the LIBOR and French franc LIBOR; (4) dual currency structured MTN mainly reflects the specific risk MTNs, which pay interest in one currency and characteristics that the investor prefers.11 Conse- principal in another; (5) equity-linked MTNs, quently, federal agencies and supranational institu- which pay interest according to a formula based on tions, which have triple-A ratings, issue a large an equity index, such as the Standard & Poor's 500 share of structured MTNs. The credit quality pro- or the Nikkei; and (6) commodity-linked MTNs, file of issuers of structured MTNs has changed which have interest tied to a price index or to the slightly in recent years, however, as some investors price of specific commodities such as oil or gold. have become more willing to purchase structured The terms and features of structured MTNs con- MTNs from single-A corporations. In structured tinue to evolve in response to changes in the prefertransactions with lower-rated borrowers, the inves- ences of investors and developments in financial tor receives a higher promised yield as compensa- markets. tion for taking on greater credit risk. Market participants estimate that structured MTNs accounted for 20 percent to 30 percent of Bank Notes MTN volume in the first half of 1993, compared with less than 5 percent in the late 1980s. The Banking organizations are major participants in the growth of structured MTNs highlights the MTN market. Like other corporations, bank holdimportant role of derivative products in linking ing companies must file registration documents various domestic and international capital markets. with the SEC when issuing public securities. Con- Frequently, the issuers of structured MTNs are sequently, the Federal Reserve survey captures located in a different country from that of the MTNs issued by bank holding companies. Over the investors. ten-year survey period, thirty-five bank holding The increasing volume of structured transactions companies raised funds in the MTN market, and is testimony to the flexibility of MTNs. When from 1989 to 1992, outstanding MTNs of bank establishing MTN programs, issuers build flexibil- holding companies increased from $8.3 billion to ity into the documentation that will allow for a $17.9 billion. Although most of these MTNs have broad range of structured transactions. Once the senior status in relation to other debt outstanding, a documentation is in place, an issuer is able to few bank holding companies have issued subordireduce borrowing costs by responding quickly to nated MTNs. Subordinated MTNs of bank holding temporary opportunities in the derivatives market. companies typically have long maturities of about The flexibility of MTNs is also evident in the wide ten years. Under regulatory capital requirements, variety of structured MTNs that pay interest or subordinated debt with a maturity of five years or repay principal according to unusual formulas. longer qualifies as tier 2 capital. Some of the common structures include the follow- In contrast to public offerings by bank holding ing: (1) floating-rate MTNs tied to the federal funds companies, securities issued by banks are exempt rate, LIBOR, commercial paper rates, or the prime from registration under section 3(a)2 of the Securirate, many of which have included caps or floors ties Act of 1933. In recent years, a growing number on rate movements; (2) step-up MTNs, the interest of banks have issued exempt securities, called bank rate on which increases after a set period; notes, that have characteristics in common with certificates of deposit (CDs), MTNs, and shortterm bonds. Like CDs, most bank notes are senior, unsecured 11. An additional reason for the high credit quality of structured debt obligations issued by the bank. In the event of MTNs is that some investors, such as money market funds, face regulatory restrictions on the credit ratings of their investments. the insolvency of the issuing institution, bank notes See Leland Crabbe and Mitchel A. Post, "The Effect of SEC are likely to rank equal with deposits, except in Amendments to Rule 2a-7 on the Commercial Paper Market," states where deposits have priority over other debt Finance and Economics Discussion Series 199 (Board of Goverobligations. As with institutional CDs, nearly all nors of the Federal Reserve System, May 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 763 bank notes are sold to institutional investors in included printing, delivery, safekeeping, messenminimum denominations of $250,000 to $1 mil- gers, insurance, and recordkeeping. Moreover, issulion. Bank notes are not covered by FDIC insur- ers incurred significant costs in the disbursement of ance, nor are they subject to FDIC insurance interest and principal payments to each individual assessments. CDs, in contrast, are insured for noteholder. According to market estimates, the $100,000 per depositor. Furthermore, in the event direct costs of transferring physical securities range of a bank failure, the FDIC could choose to protect from $5 to $30 per transaction. For small offerings, the financial interests of some or all depositors or the costs of physical delivery can add significantly other creditors without treating bank notes in the to the all-in cost of borrowing. As a result, many same manner. issuers refused to sell MTNs in denominations of Like MTNs, bank notes may be offered continu- less than $1 million. ously or intermittently in relatively small amounts Since 1988, the costs of clearing and settlement that typically range from $5 million to $25 million. of MTNs have decreased substantially as a In addition, as with MTNs, most medium-term computer-based system of book-entry recordkeepbank notes have maturities that range from one to ing has supplanted physical certificates. When an five years.12 However, ratings on senior bank notes MTN is issued under the book-entry system, an are typically one notch higher than the ratings on agent bank for the issuer uses a computer link with senior MTNs, which are issued at the holding com- The Depository Trust Company (DTC) to enter the pany level. Reflecting these differences in ratings descriptive information and settlement details of and priority in the firms' capital structures, the the transaction. The sales agent receives a copy of yields on banks notes usually are significantly the computer record from DTC, and the investor lower than the yields on MTNs of comparable receives a trade confirmation from the sales agent maturity. and periodic ownership statements from the cus- Some bank notes, which are similar to corpo- todian bank, in lieu of physical certificates. Secondrate bonds, are sold in large, underwritten, discrete ary market trades are likewise recorded with comofferings that range from $50 million to $1 billion. puter entries. Under the book-entry system, an However, they differ from corporate bonds in that issuer makes one wire transfer to DTC that covers they are not registered with the SEC. From 1988 all interest payments on each interest payment date. through 1992, banks issued $14.3 billion of under- This payment process contrasts with the process for written, senior bank notes, including $7.8 billion physical certificates in which issuers make separate in 1992. In the first half of 1993, they issued payments to each investor. Similarly, under the $6.3 billion. book-entry system, when the MTN matures, the issuer makes only one funds transfer to DTC. The DTC book-entry process costs $4 for each issu- Book-Entry Clearing and Settlement of MTNs ance, and each participant in a transaction pays between $1.29 and $1.54 for subsequent deliveries In the early and mid-1980s, high administrative costs deterred some issuers from establishing 11. Issuance and outstandings of book entry MTN programs. Among the most significant of the medium-term notes, 1988-1993:Q1 administrative costs were those arising from transferring physical securities to investors. These costs End of period IIssssuuaannccee vvoolluummee Principal PPeerriioodd ((bbiilllliioonnss ooff amount Number of Number of ddoollllaarrss)) outstanding issuers issues (billions of dollars) 12. Banks also issue bank notes with shorter maturities that range from seven days to one year. These short-term bank notes are 1988 0.6 0.6 5 136 sold to money market investors with interest calculated on a CD 1989 15.6 16.2 138 2,001 basis or discount basis. As with medium-term bank notes, short- 1990 37.3 51.4 225 6,670 term bank notes are issued at the bank level, and they are not 1991 66.5 106.2 368 12,660 1992 80.2 159.8 451 16,495 insured. Short-term bank notes differ from commercial paper 1993: Q1 25.4 177.8 484 17,254 in that commercial paper is an obligation of the bank holding company. SOURCE. The Depository Trust Company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 Federal Reserve Bulletin • August 1993 in the primary and secondary markets. Besides requirements for public offerings. Rule 144A reducing the direct cost of issuance, the book-entry allows institutional investors to trade private placesystem also lowers the likelihood of delayed deliv- ments among themselves with few restrictions. To ery because of logistical problems and reduces the protect less sophisticated investors, the SEC chances of failed trades arising from paperwork requires that 144A securities be sold only to "qualerrors. ified institutional buyers," which own and invest in Book entry has become the preferred method of a minimum of $100 million in securities. This clearing and settlement in the MTN market. definition is broad enough to include most of the According to DTC, issuance of book-entry MTNs institutions that buy MTNs, such as banks and bank rose from $600 million in 1988 to $80 billion trust departments, insurance companies, pension in 1992 (table 11). Moreover, outstanding MTNs funds, mutual funds, investment advisers, and state under the book-entry system amounted to $160 bil- and local governments.15 A foreign issuer of a lion at year-end 1992, a total that includes 16,495 144A security must provide, upon demand by a individual securities.13 security holder or potential purchaser, a brief description of the business and financial statements for the three most recent fiscal years, which can be Borrowing by Foreign Entities in the MTN in the accounting format used in the issuer's home Market and SEC Rule 144A14 country. Privately placed MTNs are an example of a security that may be eligible for resale under Rule In the 1980s, SEC disclosure requirements associ- 144A. ated with public offerings discouraged foreign cor- Since the adoption of Rule 144A, issuance of porations from issuing MTNs in the U.S. public MTNs by foreign corporations in the U.S. private market. For foreign corporations, the most burden- market has increased markedly. According to the some requirement is that financial statements con- Securities Data Corporation, issuance increased form to U.S. generally accepted accounting princi- from $2.2 billion in 1990 to $10 billion in 1992. In ples. Most foreign issuers would have to incur general, MTNs issued by foreign corporations considerable legal and accounting expenses to meet under Rule 144A have similar characteristics to this requirement, and many would have to disclose those sold by U.S. corporations in the public marmore information about their operations than is ket. Both typically are dollar denominated and required in their home markets. The expense of investment grade, with standard covenants. registering securities and satisfying ongoing reporting requirements has also deterred foreign entities from borrowing in the U.S. market. Foreign issuers DEVELOPMENTS IN THE DISTRIBUTION could avoid the costs of a public offering by selling OF MTNS MTNs in the U.S. private placement market. However, yields on most private placements included In the early and mid-1980s, the major difference an illiquidity premium resulting from regulatory between MTNs and corporate bonds was in their restrictions on trading. primary method of distribution: Typically, agents The adoption of SEC Rule 144A in April 1990 placed MTNs in relatively small amounts continueffectively created an alternative market in which ously or intermittently, while underwriters placed foreign corporations could gain access to U.S. large, discrete amounts of corporate bonds. This investors without having to satisfy the disclosure strict classification no longer applies, however. A growing number of MTN offerings have the characteristics of traditional corporate bonds, and 13. These figures on issuance and outstandings are not directly comparable with those reported in the Federal Reserve's survey because the DTC totals include bank notes and deposit notes issued by banks, as well as MTNs issued by foreign corporations. 14. See Mark S. Carey, Stephen D. Prowse, John D. Rea, and 15. Besides meeting the securities test, banks and savings and Gregory F. Udell, "Recent Developments in the Market for Pri- loans must also have a net worth of at least $25 million. In contrast vately Placed Debt," Federal Reserve Bulletin, vol. 79 (February to other investors, broker-dealers must own only $10 million of 1993), pp. 77-92. securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 765 regional dealers now sell a significant percentage 3. Large, discrete offerings of medium-term notes in the of MTNs. Thus, as the MTN market has matured, it U.S. corporate market, 1984-92 has become harder to define the securities and to describe their mode of distribution. Principal Transactions One important change in the distribution process is that a larger share of MTNs are now sold on a principal basis, rather than on an agented basis. In a principal transaction, the MTN dealer purchases an MTN for its own account and later resells it to investors. In a "riskless principal" transaction, when the dealer buys the MTN, it has already lined up an investor that has agreed to the terms of the resale. Riskless principal transactions often involve structured MTNs. In other principal transactions, become more compelling. By setting up an MTN dealers underwrite MTNs when they have not lined program, a corporation does not give up the advanup investors but expect to do so easily and quickly. tages of issuing large, underwritten securities that typically would be accomplished with a corporate bond offering. However, unlike a shelf registration Large, Discrete Offerings for corporate bonds, an MTN program gives the corporation the flexibility to issue in small amounts Corporations now more often sell MTNs that are continuously and to participate more actively in nearly indistinguishable from corporate bond offer- structured transactions. ings. These MTN offerings typically have large face amounts of $100 million or more, the typical size of corporate bond offerings. They are sold on Distribution through Regional Dealers an underwritten basis, and they often have relatively long maturities of ten or thirty years. Further- Through the mid-1980s, the major New York more, announcements of such offerings appear investment banks distributed nearly all MTNs to along with announcements of corporate bond offer- investors. As the market has matured, regional ings in financial publications. In 1992, thirty-one dealers have placed an increasing volume of corporations issued $7.14 billion of MTNs in large, MTNs. According to market estimates, placements discrete, underwritten offerings, compared with less through regional dealers now account for 5 to than $1 billion between 1983 and 1989 (chart 3). 15 percent of MTN issuance volume. In these Despite the similarities to corporate bonds, these placements, regional dealers receive information large, discrete, underwritten securities technically about issuers' offering rate schedules from MTN are MTNs because they are issued from MTN shelf agents. In turn, the regional dealers communicate registrations. To most investors, this technical dif- this information to their investor clients. When an ference is largely irrelevant because the securities investor buys an MTN through a regional dealer, have the essential features of corporate bonds. As a the regional dealer receives a selling concession result, the securities reportedly do not command a from the MTN agent. Placements through regional yield premium relative to the yield on corporate dealers improve efficiency in the market by broadbonds. ening the investor base for MTNs. Many regional As large, discrete offerings of MTNs have dealers have contacts with smaller institutional become more common, the distinction between investors, such as small banks, municipalities, and MTNs and corporate bonds has blurred. As a result, individuals with high net worth, that represent a the arguments for financing with MTNs have relatively stable source of funding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 Federal Reserve Bulletin • August 1993 Distribution of MTNs with Small regional brokerage firms market the securities to Denominations to "Retail" Investors retail investors, who place orders in minimum denominations of $1,000. At the end of the week, When the market first developed, most MTNs were the regional brokerage firms will contact the corposold primarily to institutional investors. Indeed, rate issuer and indicate the aggregate volume of most MTN programs had minimum denominations orders for notes at each maturity, and the corporaof $100,000, which precludes small investors, tion will issue one security at each maturity. In the sometimes called retail investors, from purchasing example, several hundred retail investors could MTNs. In addition, some issuers declined to issue place orders for MTNs with maturities of two and MTNs in denominations below $1 million because five years, but the administrative costs for the corbookkeeping and administrative costs become more porate issuer would reflect only two issues from the burdensome with smaller offerings. In recent years, shelf registration. While this system has the potenhowever, book-entry clearing through DTC and tial to broaden the investor base for MTNs, the size advances in computer bookkeeping have decreased of the retail MTN market is still small relative to the cost of issuing in small denominations. As a the institutional market. result, many issuers have registered MTN pro- Although the size of MTN offerings has always grams with minimum denominations of $1,000, the varied considerably, the variation has become standard in the corporate bond market. Although wider as a result of developments in the distribumost MTNs are still sold to institutional investors, tion of MTNs. In 1992, the size of MTN offerings the lowering of minimum denominations has ranged from less than $5,000 to more than broadened the investor base to include smaller $500 million (chart 4). In terms of dollar volume, investors. Regional dealers place a significant pro- about 65 percent of MTNs had an issue size portion of the smaller offerings with small institu- between $5 million and $100 million. However, tional investors. several firms have issued a large volume of MTNs Several MTN programs have recently been with denominations of less than $5 million. While designed specifically to tap the retail market with- these offerings account for less than 5 percent of out significantly increasing the administrative costs the dollar volume of total proceeds, they represent to issuers. The process of issuing retail MTNs may 45 percent of the number of issues. differ slightly from that of MTNs sold to institutions. In one type of retail MTN program, an issuer will post rates weekly with retail brokers. For EURO-MTNS example, an issuer might post a rate of 4 percent for two-year MTNs and 5 percent for five-year MTNs have become a major source of financing in MTNs. During the week that these rates are posted, international financial markets, particularly in the Euro-market. Like Euro-bonds, Euro-MTNs are not 4. Distribution of offering sizes in the medium-term note subject to national regulations, such as registration market, March 1992-June 1993 requirements.16 Although Euro-MTNs and Euro- Percent of total • Number of issuances 16. Bonds and MTNs may be classified as either domestic or international. By definition, a domestic offering is issued in the home market of the issuer. For example, MTNs sold in the United States by U.S. companies are domestic MTNs in the U.S. market. Similarly, MTNs sold in France by French companies are domestic MTNs in the French market. Bonds and MTNs sold in the international market can be further classified as foreign or Euro. Foreign offerings are sold by foreign entities in a domestic market of another country. For example, bonds sold by foreign companies and sovereigns in the U.S. market are foreign bonds, known as "Yankee bonds." Euro-bonds and Euro-MTNs are international securities offerings that are not sold in a domestic market. As a practical matter, statisticians, tax authorities, and market participants often disagree about whether particular securities should be SOURCE. The Depository Trust Company. classified as domestic, foreign, or Euro. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Anatomy of the Medium-Term Note Market 767 bonds can be sold throughout the world, the major 5. Euro-MTNs outstanding, January 1990-May 1993 underwriters and dealers are located in London, Billions of U.S. dollars where most offerings are distributed. Although the first Euro-MTN program was established in 1986, the market represented a minor / 60 source of financing throughout the 1980s. In the 1990s, the Euro-MTN market has grown at a phe- 40 nomenal rate, with outstandings increasing from less than $10 billion in early 1990 to $68 billion in May 1993 (chart 5). New borrowers account for 20 most of this growth, as a majority of the 190 entities that have established Euro-MTN programs 1 1 1 1 did so in the 1990s. As in the U.S. market, flexibil- 1990 1991 1992 1993 ity is the driving force behind the rapid growth of SOURCE. Websters Communications International. the Euro-MTN market. Under a single documentation framework, an issuer with a Euro-MTN pro- been the growth of structured Euro-MTNs and the gram has great flexibility in the size, currency emergence of large, discrete offerings. Structured denomination, and structure of offerings. Further- transactions represent 50 percent to 60 percent of more, reverse inquiry gives issuers of Euro-MTNs Euro-MTN issues, compared with 20 percent to the opportunity to reduce funding costs by respond- 30 percent in the U.S. market. In the Euro-MTN ing to investor preferences. market, many of the structured transactions involve The characteristics of Euro-MTNs are similar, a currency swap in which the borrower issues an but not identical, to MTNs issued in the U.S. mar- MTN that pays interest and principal in one curket. In both markets, most MTNs are issued with rency and simultaneously agrees to a swap contract investment-grade credit ratings, but the ratings on that transforms required cash flows to another cur- Euro-MTNs tend to be higher. In 1992, for exam- rency. Most structured Euro-MTNs arise from ple, 68 percent of Euro-MTNs had Aaa or Aa investor demand for debt instruments that are ratings, compared with 13 percent of U.S. corporate otherwise unavailable in the public markets. To be MTNs. In both markets, most offerings have matu- able to respond to investor driven structured transrities of one to five years. However, offerings with actions, issuers typically build flexibility into their maturities longer than ten years account for a Euro-MTN programs. Most programs allow for smaller percentage of the Euro-market than of the issuance of MTNs with unusual interest payments U.S. market. In both markets, dealers have com- in a broad spectrum of currencies and with a variety mitted to provide liquidity in the secondary mar- of options. ket, but by most accounts the Euro-market is less Large, discrete offerings of Euro-MTNs first liquid. appeared in 1991, and about forty of these offerings In many ways, the Euro-MTN market is more occurred in 1992. They are similar to Euro-bonds diverse than the U.S. market. For example, the in that they are underwritten and are often syndirange of currency denominations of Euro-MTNs is cated using the fixed-price reoffering method. As a broader, as would be expected. The Euro-market result of this development, the distinction between also accommodates a broader cross-section of bor- Euro-bonds and Euro-MTNs has blurred, just as rowers, both in terms of the country of origin and the distinctions between corporate bonds and the type of borrower, which includes sovereign MTNs has blurred in the U.S. market. countries, supranational institutions, financial insti- The easing of regulatory restrictions by foreign tutions, and industrial companies. Similarly, Euro- central banks has played an important role in the MTNs have a more diverse investor base, but the growth of the Euro-MTN market. For example, market is not as deep as the U.S. market. over the past year MTNs denominated in deutsche In several respects, the evolution of the Euro- marks have emerged as a major sector in the Euro- MTN market has paralleled that of the U.S. market. market as a result of regulatory changes made by Two of the more important developments have the Bundesbank in August 1992. Under the previ- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 Federal Reserve Bulletin • August 1993 ous rules, foreign borrowers could only issue debt similar liberalizations that may result in rapid denominated in deutsche marks through German growth of MTNs denominated in other currencies, subsidiaries or other German financial firms, and such as the Swiss franc and the French franc. maturities could not be shorter than two years. Debt denominated in deutsche marks also had to be OUTLOOK FOR THE MTN MARKET listed on a German exchange, and these offerings were subject to German law, clearing, and payment Few innovations in finance have been as successful procedures. These rules effectively precluded issu- as the medium-term note. Its success derives from ers from establishing multicurrency Euro-MTN its remarkable adaptability to the needs of both programs with a deutsche mark option. borrowers and investors. The success can be mea- In the August 1992 deregulation, the Bundes- sured by the number of borrowers, the diversity of bank removed the minimum maturity requirement note structures, and the amount of outstanding on debt denominated in deutsche marks issued by MTNs, all of which have increased dramatically foreign nonbanks, and it eliminated or simplified over the past decade. issuance procedures for all issuers. Although the The adoption of SEC Rule 415 in 1982 was the new rules require that a "German bank" act as an key event that removed the regulatory impediments arranger or dealer, the definition is broad enough to to continuous offerings of corporate notes. Other include German branches and subsidiaries of for- regulatory changes, such as SEC Rule 144A and eign banks. The arranger is required to notify the liberalizations by European central banks, have Bundesbank monthly of the volume and frequency been instrumental in the development of new of issues denominated in deutsche marks. As a sectors in the MTN market. As a result of these result of the Bundesbank's deregulation, from 1991 regulatory changes, financial markets have become to 1992, the share of Euro-MTN offerings denomi- more efficient. In 1992, the SEC eased restrictions nated in deutsche marks increased from 1.4 per- on the types of securities eligible for shelf registracent to 4.8 percent, while the volume of issuance tion. As a result of this ruling, asset-backed MTNs in deutsche marks rose from $268 million to may emerge as the next major growth sector in the $1.69 billion. Other central banks have instituted public MTN market. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

769 Industrial Production and Capacity Utilization for May 1993 Released for publication June 16 At 110.4 percent of its 1987 annual average, total industrial production was 3.5 percent above its Industrial production increased 0.2 percent in May, year-ago level. Utilization of industrial capacity, at a rise that matched the revised gains for March 81.6 percent, has been little changed since and April; the average monthly increase from February. October through February was about 0.7 percent. When analyzed by market group, the data show Industrial production indexes Twelve-month percent change Twelve-month percent change Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 All series are seasonally adjusted. Latest series May. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 Federal Reserve Bulletin • August 1993 Industrial production and capacity utilization1 Industrial production, index, 1987 = 100 Percentage change Category 1993 19932 May 1992 to Feb.' Mar.r Apr.r Mayf Feb.r Mar.r Apr.1 MayP May 1993 Total 109.9 110.1 110.2 110.4 3.5 Previous estimate 109.9 109.9 110.0 Major market groups Products, total* 109.2 109.5 109.5 109.6 .6 .3 .0 3.7 Consumer goods 108.5 108.8 108.4 • 108.3 .9 .2 -.3 2.4 Business equipment . 131.7 133.2 134.2 134.5 .4 1.1 10.2 Construction supplies 97.5 96.3 96.0 96.7 2.8 -1.3 -.3 1.4 Materials 110.9 110.9 111.3 111.6 .5 .0 .4 3.3 Major industry groups Manufacturing 110.5 110.7 111.2 111.4 .4 4.1 Durable 113.8 114.0 114.6 114.8 .5 5.8 Nondurable 106.4 106.7 107.1 107.3 .0 .3 1.9 Mining 95.9 95.3 96.5 96.9 -2.4 1.3 -1.9 Utilities 117.5 117.8 113.8 113.4 4.2 -3.4 2.0 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1992 1993 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, MMMaaayyy 111999999222 11996677--9922 11998822 11998888--8899 May Feb.r Mar.r Apr.r May? tttooo MMMaaayyy 111999999333 Total 81.9 71.8 84.8 80.1 81.5 81.6 81.6 81.6 1.6 Manufacturing 81.2 70.0 85.1 79.1 80.5 80.6 80.8 80.8 1.8 Advanced processing 80.7 71.4 83.3 77.5 79.0 79.3 79.4 79.4 2.2 Primary processing .. 82.2 66.8 89.1 82.6 84.3 83.8 84.1 84.3 .8 Mining 87.4 80.6 87.0 87.8 85.8 85.3 86.5 86.9 -.9 Utilities 86.7 76.2 92.6 84.9 88.9 89.0 86.0 85.6 1.2 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. that the output of durable consumer goods declined rebound from their declines in the previous two 1 percent, as assemblies of motor vehicles fell back months. The output of products has shown little and the production of other durable consumer change over the past two months, but the producgoods, on balance, was unchanged. Overall, the tion of industrial materials increased 0.4 percent in production of consumer durables, which rose April and 0.3 percent in May. Gains in the producstrongly at the end of last year, has changed little tion of computer-related parts and in iron and steel since January. The output of nondurable consumer led the advance of 0.5 percent in the output of goods increased 0.2 percent in May, a move reflect- durable goods materials. The output of nondurable ing gains in the output of consumer chemicals. The goods materials rose 0.2 percent, as chemical mateproduction of business equipment rose 0.3 percent, rials strengthened and paper materials weakened. a much weaker advance than in March and April. Energy materials edged down because of a strike in The output of industrial equipment and computers coal mining. continued to climb, but production of other busi- When analyzed by industry group, the data show ness equipment weakened. The production of tran- that production in manufacturing increased 0.2 persit equipment fell more than 1 Vi percent; the output cent in May; excluding motor vehicles, the gain of other equipment, which increased rapidly from was 0.3 percent. Capacity utilization in manufactur- February to April, was little changed. Within inter- ing was unchanged at 80.8 percent, a level about mediate products, construction supplies showed Vi percentage point below its 1967-92 average. widespread increases and rose 0.7 percent, a Production gains in many areas pushed the utiliza- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 111 tion in primary-processing industries up 0.2 per- The output at mines increased 0.5 percent, centage point, to 84.3 percent, about 2 percentage despite the strike-related decline in coal producpoints above its long-run average; operating rates tion, because of increased extraction of crude oil in lumber, steel, and textiles were above their long- and sharp gains in oil and gas well drilling. The run averages. The utilization rate at advanced- output at utilities, which has been quite volatile in processing industries, on balance, was unchanged. recent months, declined 0.3 percent in May; over At 79.4 percent, the utilization rate for this group the past year, production at utilities has risen about of industries was still below its 1967-92 average. 2 percent. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 Statements to the Congress Statement by John P. LaWare, Member, Board moreover, the individual states have modified of Governors of the Federal Reserve System, their statutes to permit—under the Douglas before the Subcommittee on Financial Institu- Amendment to the Bank Holding Company tions Supervision, Regulation and Deposit Insur- Act—out-of-state bank holding companies to ance of the Committee on Banking, Finance and own banks within their jurisdiction. Indeed, to- Urban Affairs, U.S. House of Representatives, day only Hawaii prohibits bank ownership by June 22, 1993 out-of-state bank holding companies. Although state legislatures have supported in- I am pleased to appear before the subcommittee terstate banking and more than one-fifth of doon behalf of the Federal Reserve Board to dis- mestic banking assets are already held in banks cuss issues associated with interstate banking. controlled by out-of-state bank holding compa- For many years, the Board has believed that full nies, the Board believes that congressional acinterstate banking would benefit bank customers tion is needed. Our dual banking system has a and lead to a stronger and safer banking system. desirable genius for resisting government- Although we have concerns about certain spe- imposed uniformity, but the large number of cific provisions of the bills before you, we significant differences among the states impedes strongly support the thrust of these legislative the interstate delivery of services to the public initiatives. I would like to explain the reasons for and reduces the efficiency of the banking busiour support and to evaluate the concerns voiced ness. The differences in state laws are discussed by the critics of interstate banking. To assist the in the first appendix to this statement, but notasubcommittee in its deliberations, the appen- ble examples include restrictions on the home dixes to my statement provide an up-to-date state of banking organizations allowed to enter summary of state laws regarding interstate bank- some states, reciprocity requirements in some ing, a discussion of recent trends, and several other states, the prohibition of de novo entry, statistical tables that provide relevant informa- and variable caps on the deposit shares of new tion. 1 entrants in still other states. In short, the states Interstate banking is now a reality and has have made clear that they accept—and perhaps been for some time. For years, both domestic prefer—interstate banking, and their legislatures and foreign banks have maintained loan produc- have made interstate banking a substantial reality tion offices outside their home states, have issued today, but actions at the state level have resulted credit cards nationally, have made loans from in a hodgepodge of laws and regulations that their head offices to borrowers around the nation permit interstate banking in an inefficient and and the world, have solicited deposits throughout high-cost manner. the United States, have engaged in a trust busi- Restrictions on both intrastate and interstate ness for customers domiciled outside the banks' banking were imposed in an era in which comlocal markets, and—through bank holding com- mercial banks were the dominant provider of panies—have operated mortgage banking, con- financial services to households and businesses. sumer finance, and similar affiliates without These restrictions were clearly intended to limit geographic restraint. Since the early 1980s, competition and thereby insulate local banks from market pressures. Over time, branching and other geographic restraints became part of the 1. The attachments to this statement are available from totality of regulations designed to protect bank Publications Services, Board of Governors of the Federal profits through limitations on entry and deposit Reserve System, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 773 rate competition. In recent years, however, impacts of dependence on one market for both banks have seen their market position eroded by deposits and loans. Being able to cushion losses nonbank providers of financial services that are in one region with earnings in others would make not subject to bank-like regulation. Indeed, the banks better able to contribute to the recovery of unwinding of the historically protected position their local economy, and more diversified banks of banks, such as the removal of deposit rate would expose the federal safety net to fewer ceilings, has proceeded on most fronts as a losses. Clearly, greater geographic diversificalagged response to market developments that had tion would have provided more stability over the themselves been encouraged by those same re- past decade to banks operating in the agricultural straints on banks. Attempts to maintain anti- areas of the Midwest, the oil patch of the Southquated geographic restrictions will only protect west, and the high tech and defense regions of inefficient banks, disadvantage consumers of New England and California. In short, the elimbank services (particularly those like small busi- ination of geographic restraints would provide an nesses that still have relatively few alternative important tool in diversifying individual bank sources of credit), encourage the entry of less risk, thus providing for stability of the banking regulated nonbank competitors, and increase the system and improving the flow of credit to local stress on the safety net as the long-run viability economies under duress. of banks is undermined. Third, interstate banking would facilitate the Action to provide more uniform rules for in- allocation of resources to regions that offer both terstate banking would provide several public safety and higher return and would assist in the benefits. First, reducing obsolete barriers to en- reduction of excess banking capacity. We hope try would increase actual and potential competi- that the United States will continue to be a tion in the provision of financial services to those dynamic economy. Such economies grow more customers that for one reason or another have, at rapidly but are characterized by both expanding best, very limited access to out-of-market banks, and declining industries and by expanding and nonbank lenders, or the securities markets. Bank temporarily declining regions. Banks pinned by customers would benefit from the resulting lower artificial geographic restrictions to local areas prices for credit, higher rates on their deposits, that experience difficulties have no choice but to and improved quality and easier access to bank- pull in their horns, as it were, to protect their ing and related services. In addition, a significant own viability. Only through interbank credit exproportion of our citizens live in areas in which tensions and loan participations can they diverstate borders intersect; interstate banking would sify their portfolio to move their assets to borprovide households and businesses in these re- rowers unaffected by the depressed local gions with significantly increased convenience in economy. Indeed, many of these institutions no conducting their banking business. doubt tend to have lower loan-to-deposit ratios in Second, greater opportunities for geographic part because of their inability to find bankable diversification through interstate banking could local credits. Note that, given banks' long-run help restore a level of stability to the banking interest in geographic diversification, banking system that once was accomplished, in part, offices would still remain in regions experiencing through protection of local banks from competi- difficulty but would be in a stronger position to tion. Although increased competition from non- finance local expansion when growth opportunibanks has undermined the protection intended to ties return. be provided to banks through controlled entry The benefits from removal of restrictions on and geographic constraints, those same restric- geographic expansion could occur through either tions have made it more difficult for banks to the acquisition or de novo chartering of bank diversify their risks and seek out new opportuni- subsidiaries of bank holding companies headties. Thus, many banks operating in a region that quartered in another state or through the estabhas experienced a local economic contraction lishment of branches of a bank in another state. have been neither protected by limits on bank All the interstate banking laws enacted by the competition nor able to avoid the disastrous states provide for interstate banking through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

774 Federal Reserve Bulletin • August 1993 bank subsidiaries of bank holding companies, agencies have attempted, when possible, to apalthough some states permit interstate banking ply this principle. Examples include the reduced through branches for state nonmember banks. documentation requirement on small and Two of the three bills before the subcommittee, medium-sized business loans and the Board's H.R.2235 and H.R.459, would authorize inter- amendments to Regulation F implementing secstate banking on a nationwide basis through bank tion 308 of FDICIA with regard to interbank subsidiaries. This step removes the last few liabilities. A policy that rewards stronger banks vestiges of restrictions on interstate banking is a desirable supplement to the regulatory limits through bank subsidiaries, and the Board imposed on weaker banks. However, the substrongly supports such statutory change. The committee may wish to consider amending this Board also supports removing the McFadden provision of H.R.2235 to permit the banking Act's restrictions on interstate branching for agencies to authorize a less than adequately national and state member banks. This removal capitalized bank to expand into another state if it would permit banks to choose between alterna- would, in the agency's judgment, improve the tive combinations of subsidiary banks and financial condition of the bank. branches in the manner that best balances their State supervisors would no doubt prefer interown perceived costs and benefits. state operations through separate banks in each The evidence from virtually all of the limited state because it is much easier for them to number of studies that compare interstate bank- supervise the activities of a single organization in ing to branching suggests that, on average, both their jurisdiction. It seems to the Board, howdelivery systems have about the same cost struc- ever, that the criterion of ease of regulation for ture. However, such evidence is also consistent states is only one part of a broader cost-benefit with the view that for some banks branching may test. So long as safety and soundness are not have the lowest cost structure. Indeed, as a compromised, efficiency and least cost are far matter of logic, the Board believes that the cost more important factors on which to base policy. savings from elimination of separate boards of We applaud the solution to this problem prodirectors, separate management teams, and sep- posed in H.R.2235 and in the Nationwide Bankarate capitalization for banks that could be ing and Branching Act, H.R.459. As we underbranches would be significant for some organiza- stand it, under the provisions of both bills, the tions. In any event, we believe that no good state in which branches of an out-of-state bank public policy purpose is served by restraining the operate would negotiate a supervisory agreement freedom of choice of individual banking organi- with the supervisor of the bank's home state that zations, which know best what is the least cost is acceptable to both states and to the relevant operating structure for them. We therefore ap- primary federal regulator. Failure to reach agreeplaud the provisions of H.R.256 and H.R.2235 ment would require that the primary federal that would permit, immediately upon enactment, supervisor conduct examinations without deferinterstate banking offices to be converted to ring to the state authorities. Such an approach branches, should a banking organization choose creates desirable incentives for the states to to do so. reach reasonable accord. We also support H.R.2235's approach that When interstate banking is implemented would extend interstate branching powers to through bank subsidiaries, the bank in each state only those banks that are at least adequately has all the powers that go with its charter— capitalized and adequately managed (which we national or state. However, should interstate assume means having acceptable supervisory banking occur through branches, legislation must ratings). In the Board's statements during the clarify whether those branches must limit their drafting of and debate about the Federal Deposit activities to those permitted to banks chartered Insurance Corporation Improvement Act of 1991 in their host state, to activities permitted to (FDICIA), the Board supported the principle of banks in their home states, or—for national or expanded activities only for strongly capitalized state banks—to the powers granted to national banks. In drafting recent regulations, the banking banks. The issue of the powers that interstate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 775 branches should be permitted to exercise re- from the home state to the branching host state, quires balancing several competing concerns, the arguments used by opponents of interstate including preserving the dual banking system and banking must be carefully reviewed. creating incentives that could make certain types The first concern is that interstate banking of bank charters more attractive than others. We would result in undue concentration—and ultiread all three bills before the subcommittee as mately higher loan rates and lower deposit achieving the same balancing of the conflicting rates—as large out-of-state banks drive small concerns. All the bills provide that interstate in-state banks out of business. In-state market branches of state-chartered banks may not en- evidence simply does not support this contengage in any activities in the host state that are not tion. All the relevant evidence indicates that permitted for banks chartered by the host state. small banks generally survive entry by large National banks would still have the same powers out-of-market banks and are most frequently regardless of which states they were in, except more profitable than the entrant. Similar evithat, as at the present time, and consistent with dence indicates that new large bank entrants to the McFadden Act, branching within the host local markets, whether by de novo or by acquistate would be limited by the laws of the host sition, are able to expand market share by only state. These provisions seem like a reasonable modest amounts, if at all. approach. In the 1970s, for example, when statewide The interstate operations of foreign banks do- branching was authorized in New York State, ing business in the United States raise issues several large New York City banks sought an similar to those for U.S. banks operating across upstate presence by acquiring small banks in state lines. It has been a long-standing policy of these markets. By the early 1980s, the acquired the U.S. government to grant foreign banks banks had gained on average less than one pertreatment equivalent to that given to U.S. centage point in market share, with the largest chartered banks—so-called national treatment. gain less than three percentage points. The ac- In the present context, such an approach would quired banks or branches continue to have small permit foreign banks to operate interstate on the market shares or they have been sold to local same basis as U.S. banks, and it is this position banks, as the New York City banks have exited that the Board supports. We believe that the the market. Experience in California also illusprovisions of H.R.2235 and H.R.459 that require trates the ability of small banks to remain viable the banking agencies to consult the Treasury on in the face of competition from much larger the foreign bank's capital equivalency before organizations. California has permitted unreapproval of the first branch of the foreign bank stricted statewide branching since 1927, and sevare inconsistent with national treatment, as well eral of the state's banking organizations, most as unnecessary. The Board recommends that notably BankAmerica, have operated extensive these provisions be dropped. In addition, the branch networks for years. In spite of these Board believes that the requirement in H.R.2235 extensive branch banks, California continues to that branching be permitted only through a U.S. have many successful independent banking orgasubsidiary bank if that structure is needed to nizations. For example, as of year-end 1992, 101 verify adherence to U.S. standards by a foreign of the 395 banking organizations in California had bank is also unnecessary. The Foreign Bank less than $50 million in assets. Moreover, over Supervision Enhancement Act of 1991 already the period 1981 through 1991, about 311 de novo provides that a foreign bank may not establish a banks (almost 11 percent of the U.S. total of branch in the United States unless its capital is de novo banks) began operation in this unlimited determined to be equivalent to that required of a branching state. U.S. bank. Consequently, the Board recom- Besides their difficulties in winning customers mends that this provision also be deleted. away from existing banks, entrants by acquisi- Whether interstate banking is achieved tion often are soon confronted with competition through bank subsidiaries, bank branches, or from a de novo bank organized by local citizens, both, and regardless of how powers are exported at times led by the former managers of the bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 Federal Reserve Bulletin • August 1993 acquired. The potential for entry—both de novo will vacuum up local deposits and channel them and by acquisitions by other banks outside the to out-of-market loans or that managers brought market—plus evidence of continued small bank into local markets will be insensitive to, or have success suggest it is unlikely that consumer harm no authority to adjust to, local demands. Howwould come from interstate banking. Although ever, it is important to recall that an insured bank more than 5,000 banks have been absorbed by must fulfill its Community Reinvestment Act merger since 1979, about 3,500 new banks have (CRA) responsibilities in all the markets in which been chartered. In addition, although almost it operates. Moreover, the ease of entry, just 10,500 branches have been closed, 24,000 new discussed, should soften concerns that out-ofones have been opened during that period. The market entrants will ignore local customers. If a vast majority of local banking markets in the local branch does not meet both the deposit United States are incredibly dynamic and sensi- needs and credit demands of the community, it tive to consumer demand, and interstate banking will not succeed and it will attract a rival that seems likely to make them more so. The concern will. that interstate banking would lead to excessive However, because the Board realizes that the concentration in local banking markets is miti- expansion of nationwide banking raises several gated further by the fact that antitrust enforce- issues regarding the impact on local community ment in banking focuses on maintaining compet- credit needs, it does support provisions of itive local markets. Concentration ratios have H.R.2235 and H.R.459 that would amend the not increased in local markets despite the sub- CRA to require that performance of interstate stantial overall consolidation in banking in recent institutions be assessed on a statewide or metroyears. Local competition has been maintained, in politan area basis. This approach would maintain part, because many bank mergers have been the concept embodied in the CRA that insured between firms operating in different local mar- banks should be evaluated on overall perforkets. In addition, increased concentration has mance without imposing arbitrary or costly regbeen avoided by factors already noted: antitrust ulatory requirements at the level of the individual laws, limited ability of new large banks to in- branch. crease market share, and continued vitality of On the other hand, imposing a regulatory resmall local competitors. gime that requires that individual out-of-state The importance of local markets and the evi- branches meet special credit availability requiredence of little change in local market concentra- ments (H.R.2235 and H.R.459), or that estabtion suggest that attempts to ensure competition lishes numeric tests for individual branch loan through statewide or national deposit caps are production (H.R.2235), would represent unnecunnecessary at best and may, in fact, be anticom- essary and burdensome regulation of interstate petitive to the extent that they prohibit entry. branches. It would also be duplicative and un- Indeed, the 30 percent individual bank cap that necessary to impose new credit availability re- H.R.2235 would permit states to authorize would quirements on branches that are simply replaceprotect seventeen banks in thirteen states from ments for existing interstate banks of the same out-of-state acquisitions; seven of the seventeen organization (H.R.2235). Evaluating the stateare already held by out-of-state banking organi- wide or metropolitan area CRA performance of zations. The Board would recommend deletion an out-of-state institution would, in the Board's of the imposition of statewide and national de- view, provide adequate information to determine posit share caps as contained in the Interstate that an interstate institution is meeting commu- Banking Efficiency Act. Similarly, H.R.2235 dis- nity needs in the markets it serves. courages entry by authorizing states to restrict Finally, in considering the needs of local marentry only to acquisitions of banks or branches kets, the Congress should consider the fact that that are at least five years old. We see no public large banks have higher loan-to-deposit ratios benefit from such restrictions, although entry is than do small banks. This could imply that large most likely to be by acquisition in any event. banks entering new markets would make both Another concern of some is that new entrants more in-market loans and more out-of-market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 30 loans. Many assume that most of the loans and, for our banking system, increased competwould, in fact, be made outside the community. itive efficiency, the elimination of unnecessary However, as I noted, banks must both meet their costs associated with the delivery of banking CRA requirements and service their customers services, and risk reduction through diversificato remain competitive in the market. It should tion. By the record, most community banks are also be kept in mind that small, independent already providing services to their customers so banks also export funds: They are relatively large efficiently that they have little to fear from outlenders to other banks through the federal funds of-market rivals. Those that are not providing and correspondent deposit markets and purchase such services should worry because interstate relatively more Treasury and out-of-market state banking will—and should—mean either their disand local bonds than large banks. placement by a more efficient competitor or their In sum, interstate banking promises wider rising to the competitive challenge and improving household and business choices at better prices their own efficiency. • Statement by Richard F. Syron, President, Fed- ing bank management to choose a banking eral Reserve Bank of Boston, before the Sub- structure that improves its ability to diversify committee on Financial Institutions Supervi- and that reduces its costs, banks will realize sion, Regulation and Deposit Insurance of efficiency gains that will benefit borrowers and the Committee on Banking, Finance and Ur- depositors alike. Alterations to our antiquated ban Affairs, U.S. House of Representatives, banking structure are already occurring without June 22, 1993 federal legislation. Not only do intermediaries far removed from the customer's location pro- I appreciate this opportunity to appear before vide many banking products, but, in addition, a you to discuss the issues surrounding interstate large number of states, including all six New banking and branching. Today I will confine my England states, have adopted interstate banking remarks to issues related to the ways that inter- laws. Thus, in many banking areas we already state banking can improve credit flows, rather have de facto interstate banking. than to specific issues that are addressed in the I will first describe the limited interstate bankvarious legislative proposals. ing that has been in operation in New England for Current restrictions on interstate banking and some time. Unfortunately, the expansion of New branching are an anachronism; they reflect the England bank holding companies under regional state of banking when local banks were almost compacts has not extended much beyond the the exclusive source of loans, deposits, and region. services for both businesses and individuals. Second, I will discuss the de facto interstate These restrictions are incongruous in the present provision of many banking services that is banking environment, in which banking products already in place; for example, the markets for have no geographic boundaries and are fre- mortgage loans, consumer loans, and large busquently provided by other financial intermediar- iness loans are now national in scope. Loans to ies. The breakdown of geographic and institu- small and medium-sized businesses remain pritional barriers is the inevitable outgrowth of marily limited to local markets, however, and improvements in technology and in information thus will continue to be adversely affected by processing. As bank products have standardized any restrictions on the flow of bank capital and the economies of scale in information pro- across geographic boundaries. cessing have grown, it has become much easier Third, I will describe the ways in which the to provide cost-effective service independent of recent regional economic shock has affected the location. availability of credit to small and medium-sized Any new legislation should seek to promote businesses in New England. The economic shock the most efficient banking structure. By allow- would have been less severe if banks had been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 Federal Reserve Bulletin • August 1993 better diversified through wider interstate bank- England were diversified against very localized ing and branching. shocks, even large ones were not diversified Finally, I will show that new evidence from against a widespread regional economic down- New England suggests that large, multistate turn. banks can offer improved services to borrowers The expansion of interstate banking and and depositors without impairing the viability of branching is not likely to have much effect on small community banks because the markets many aspects of bank lending. For example, served by smaller banks are often quite distinct pools of one- to four-family residential mortgages from those in which the large banks operate. can be purchased from other parts of the United States, and credit card receivables are securitized and sold nationwide. However, the market LIMITED INTERSTATE BANKING for small to medium-sized nonresidential real IN NEW ENGLAND estate loans is still primarily a local market. And, in particular, most small business loans depend New England has had limited interstate banking on real estate for collateral. Because these loans for some time. Maine first allowed nationwide cannot easily be securitized, portfolios of comreciprocal banking in 1978 and later dropped the mercial and industrial loans tied to real estate requirement of reciprocity. Regional reciprocal cannot easily be diversified. Thus, the recent banking was first allowed in Connecticut in 1983, regional shock that deeply depressed real estate in Massachusetts in 1984, and in New Hampshire prices left many New England banking instituin 1987. All three states revised their laws in tions quite exposed. 1990, as Connecticut and Massachusetts adopted nationwide reciprocal banking and New Hampshire adopted nationwide interstate banking INTERSTATE BANKING SERVICES without requiring reciprocity. Agreements that allowed regional reciprocal banking that later Most consumers are well aware of the de facto converted nationwide reciprocal agreements interstate provision of banking services. Frewere adopted in Rhode Island in 1984 and in quently, neither the owner nor the servicer of a Vermont in 1988. residential mortgage is located in the same state The laws adopted in the mid-1980s to allow as the borrower. Similarly, consumers with good regional mergers were utilized by many of our credit ratings are likely to have access to conlargest bank holding companies. For example, sumer credit through a financial institution loamong the two largest bank holding companies in cated outside the states in which they reside. New England, Bank of Boston has subsidiaries in Problems with the service provided by one credit all six New England states, and Fleet Financial card issuer can easily be rectified by responding Group has subsidiaries in every New England to one of the many mail solicitations for credit state except Vermont. However, the period since cards from out-of-state banks or nonbank the more recent adoption of laws permitting sources. nationwide interstate banking has not been long The same pattern has emerged on the other enough to result in substantial diversification side of the balance sheet. In placing their deposoutside the region. its, consumers have an array of alternatives to If New England's recent economic downturn local depository institutions. Mutual funds and had been limited to one state, our largest holding brokerage houses provide numerous alternatives companies could have weathered the problem to bank deposit accounts. The plethora of banks more easily and lending activities would have offering money market and mutual fund services experienced less disruption. Unfortunately, the indicates how substitutable many of these acshock was not localized within one or even a few counts are in a consumer's portfolio. Again, New England states. All six New England states these alternatives are frequently provided by experienced a severe economic slowdown and intermediaries located outside the consumer's falling real estate prices. Although banks in New home state. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 779 Businesses have even greater access to credit ers be unwilling or unable to provide financing. outside their state. Large corporations often Borrowers with annual sales ranging from $10 obtain financing directly from credit markets by million to $49 million depend more on banks issuing commercial paper and bonds. It is not within the region than do larger corporations, unusual for firms that are not quite large enough but they are far less likely to borrow from the to access the financial markets directly to seek largest banking institutions. In addition, they bank financing outside the confines of an indi- most frequently mentioned having no shortvidual state. In fact, because both bank man- term credit because their credit arrangements agement and bank regulators impose restric- had been terminated within the past two years. tions on how exposed a bank can be to a single borrower, large borrowers may pose too large a concentration risk to get all of their financing REGULATORY CONSTRAINTS IN BANKING from in-state banks. Thus, in states with few large banks, large borrowers have long sought Most economics textbooks emphasize the role of banking relationships outside their own state reserve requirements in restricting expansion of that can satisfy their loan demand without vio- bank assets and liabilities. Restrictions on capital lating lending limits. ratios have received much less attention, even Table 1 illustrates this point by providing the though currently they are having a substantial results of a 1992 loan survey by the Federal effect on the ability of many banks to expand. Reserve Bank of Boston of sources of financing A desirable feature of an efficient financial for small and medium-sized businesses in New market is that scarce resources flow to the user England.1 Among those businesses that sought that values them most highly. Unfortunately, short-term credit, only 55 percent of firms with there are many impediments to the flow of bank sales between $100 million and $249 million ob- capital. Without nationwide banking and branchtained all their short-term credit from a New ing, regions of the economy experiencing severe England-based bank. The same percentage re- regional shocks may be unable to attract addiceived some or all of their short-term credit from tional bank capital when loan demand exceeds one the three largest bank holding companies in loan supply. Informational difficulties make new New England. Thus, for many medium-sized as entry into a banking market particularly costly well as large firms only large banks can satisfy for a bank with little familiarity with the regional their lending needs, and their financing may not economic environment. Thus, even without regonly be out-of-state but also out-of-region, thus ulatory impediments, the flow of bank capital is insulating these firms from local shocks to credit likely to be slow. In a region in which banks supply. experience substantial losses, bank capital will Smaller business are much more dependent be restored only with long time lags. However, if on local bank financing to meet their credit outside banks had already located branches or needs. Many small businesses have neither the affiliates in the region, they would be in a position collateral nor the track record to secure financ- to quickly fill lending gaps. ing from lenders unfamiliar with their firm and The credit crunch experienced in New England the economic environment in which they oper- over the past two years is an example of a severe ate. Such "character lending" requires an in- regional economic shock that was magnified by termediary with substantial understanding of the impaired capital position of most New Engthe local community that can only be obtained land depository institutions. Figure 1 shows bank by maintaining a presence in the area. As a capital ratios for commercial banks in the United consequence, these local-bank-dependent bor- States and in the First Federal Reserve District, rowers have few alternatives should local lend- which encompasses New England. Capital ratios for commercial banks nationwide were largely unaffected by recession periods. However, as a 1. The attachments to this statement are available from result of the bursting of the real estate bubble and Publications Services, Board of Governors of the Federal the consequent loss of bank capital, capital ratios Reserve System, Washington DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 Federal Reserve Bulletin • August 1993 declined dramatically for New England banks in small banks when they are forced to compete 1989 and 1990. with large multistate holding companies. Evi- This drop in bank capital was particularly un- dence from New England suggests that small timely because it occurred while legislators, reg- banks have no difficulty competing with their ulators, investors, and bank management were larger brethren. Table 2 lists the twenty most placing increased emphasis on improving bank profitable commercial and savings banks in New capital ratios. Banks that were trying to improve England over the past five years. Sixteen of the capital ratios during a period of large loan losses twenty banks have less that $500 million in total were forced to dramatically decrease their assets. assets. Each New England state is represented, Research at the Federal Reserve Bank of Boston and most of these banks face competition from has found that banks with difficulty in satisfying the area's largest bank holding companies, which capital ratios decreased their lending, particularly have affiliates throughout New England. to bank-dependent borrowers. Small banks can profit by serving market If full interstate banking and branching had niches not easily satisfied by very large banks. been available much earlier, these problems To manage and control a large banking organiwould have been mitigated for two reasons. zation a certain degree of standardization must First, many New England institutions could al- occur. Although standardization works well for ready have diversified outside the region. Al- larger, low-margin loans, often it is not approthough economic shocks that disproportionately priate for smaller loans that require specific affected New England would still have affected knowledge about the management and ecolarge New England institutions, the effect on nomic circumstances of a particular business. their total capital position would have been less- Small banks that are well established in the ened. And, with their overall capital position less community, and whose management is familiar impaired, they would have had a greater ability with the borrower and his business, are often in to lend to creditworthy borrowers. Second, out- a much better position to make loans when the side institutions would have been able to estab- character of the borrower is a critical compolish branches or acquire subsidiaries to meet the nent of the loan. demand for loans that could not be satisfied by capital-impaired banks in that locality. Figure 1 illustrates the advantages of interre- CONCLUSION gional diversification. Although New England banks suffered a severe capital shock, banks The question is not whether we should have nationwide experienced no substantial reduction interstate banking but rather the degree and the in capital ratios. Had some banks in other regions form it will take. Many bank services are alhad a significant presence in New England, or ready provided interstate, and intestate acquihad New England banks had a significant pres- sitions have been widespread within New Enence in other regions, capital ratios of individual gland. However, the remaining artificial banks would have been affected less, so that constraints on the movement of bank capital some banks would have been able to lend to contributed to the severity of the recent credit borrowers that were cut off from financing pri- crunch in New England, and they continue to marily because of the impaired capital of their place banks at a competitive disadvantage with traditional local lender. other financial intermediaries not so constrained. If we want to avoid future banking problems in other regions that experience eco- THE ROLE OF SMALL BANKS nomic downturns and if we want to prevent a further deterioration in banking in general, I A major concern of opponents of interstate bank- strongly urge you to adopt legislation to permit ing and branching is the continued viability of interstate banking and branching. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 781 Statement by John P. LaWare, Member, Board sheets. The large number of bank failures durof Governors of the Federal Reserve System, ing the past half-dozen years also indicate that before the Subcommittee on Financial Institu- credit standards at many banks need to be tions Supervision, Regulation and Deposit Insur- improved. It is important, therefore, that any ance of the Committee on Banking, Finance and regulatory policy changes designed to spur ad- Urban Affairs, U.S. House of Representatives, ditional bank lending not weaken the fundamen- June 29, 1993 tal supervisory process. Recent actions we have taken have been carefully designed with I am here this morning to discuss recent steps that principle in mind. taken by the Federal Reserve, in cooperation with the other federal bank regulatory agencies, to reduce regulatory burden on financial institu- RECENT POLICY ANNOUNCEMENTS tions and to facilitate an increased flow of credit. The regulatory burden on depository institutions The federal bank regulatory agencies realized has taken on new importance after enactment of before passage of FDICIA that their supervisory the Financial Institutions Reform, Recovery, and actions may impose undue burdens on some Enforcement Act of 1989 (FIRREA), the Federal banks and may unnecessarily constrain bank Deposit Insurance Corporation Improvement credit availability. Consequently, in late 1991 the Act of 1991 (FDICIA), and the evidence of agencies issued joint statements that clarified restrained lending by banks. The costs to com- their examination policies regarding commercial mercial banks and to other depository institu- real estate loans and encouraged banks to work tions of adhering to banking laws and regulations with troubled borrowers to resolve problem continue to grow and, despite the industry's loans. recent record profits, could begin to threaten the More recently, we have jointly taken numerindustry's long-term competitiveness. I have tes- ous other efforts to reduce regulatory burden, tified several times in recent months on these and while still adhering to relevant banking laws and related matters and would hope that the in- fundamental principles of bank supervision. Sevcreased attention given to these topics can lead eral initiatives were announced on March, and to meaningful reductions in regulatory burden for further details have subsequently been put forthe banking system. ward, including a series of policy statements that Having said that, and before discussing details was issued on June 10. of new initiatives, I would like to emphasize the limited ability of the regulatory agencies to encourage a pick-up in loan growth through admin- March Policy Statement istrative actions and also the inherent risks of attempting to reduce regulatory burden substan- The March statement sought to improve credit tially by simply changing regulatory or supervi- availability to small and medium-sized busisory policies and procedures. The results of nesses and farms, and it covered other supervilender surveys taken by the Federal Reserve sory issues as well. Perhaps the most important have consistently indicated for several years that element of the statement was the announcement the slow or negative growth of bank lending has of forthcoming changes to agency rules regardbeen more a result of weak loan demand than of ing the need for real estate appraisals by certiany other factor. fied or licensed appraisers. Such appraisals, Changes in supervisory or examination prac- which relate to a requirement of title XI of tices may help at the margin, but they are FIRREA, have been controversial and costly to unlikely to produce fundamental changes in banks and to their customers. If the proposed credit conditions. That is the case for many rules are adopted, appraisals will be required reasons, mostly dealing with the recent reces- less often. sion and the need and desire of both businesses The proposed change, issued for comment on and consumers to strengthen their balance June 10, would (1) increase the threshold amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 Federal Reserve Bulletin • August 1993 for which such appraisals are required from June Policy Statements. $100,000 to $250,000, (2) expand the "abundance of caution" exemption so that an appraisal is not The series of June 10 policy statements dealt with required when the value of the collateral is not various issues that were mostly intended to rematerial to the decision to make the loan, and (3) duce impediments to the extension of credit and, exempt from appraisals business loans of less in some cases, to conform supervisory and exthan $1 million when the principal source of amination procedures to newly adopted accountrepayment is not the sale of, or income from, the ing standards. The regulatory agencies also isreal estate held as collateral. These changes are sued important new initiatives that were intended designed to reduce burdens imposed by the ap- to detect and deter discriminatory lending pracpraisal regulation, while still requiring appraisals tices. Finally, the agencies also reaffirmed earlier when they are needed to enhance the safety and agreements to coordinate their examinations. soundness of financial institutions. Much recent tightening of credit standards by Another important provision described a pol- banks and the subsequent reduction of bank icy change that would permit strong and well- credit to many borrowers can be traced to widemanaged banks to set aside a limited portion of spread problems in commercial real estate martheir loans to small and medium-sized busi- kets. In many cases, these problems resulted nesses. Examiners would then evaluate that se- from weak underwriting standards that accomlected portfolio of loans only on the basis of its modated much overbuilding throughout the performance and not on the level of loan docu- United States and created serious financial diffimentation. culties and even failures at some banks. Even This change was intended to foster an envi- institutions that were not materially affected by ronment in which banks could extend more problem real estate credits were prompted by so-called "character" loans to businesses with events to review their own lending standards in which they were familiar and to base their light of new developments and economic condilending decisions principally on professional tions. Similarly concerned by these events, many judgments about the borrower's overall credit- examiners also began to look more closely and to worthiness without being exposed to examiner review more critically the strength of commercial criticisms about the specific nature or lack of real estate loans, in particular, and entire loan documentation about the borrower. This portfolios, in general. All of these factors change was consistent with an overall effort by prompted a tightening of the terms of lending and the agencies to refocus supervisory attention to a subsequent reduction in the availability of areas in which risks are high and to reduce credit. regulatory burden to areas in which risks are In large part, many of these changes repreless, such as with strong, well-managed banks. sented a reasonable and appropriate response to It was also part of a broad effort to increase the recent events and to the reduced ability of some availability of credit to low- and moderate- banking institutions to incur additional risks. income neighborhoods and disadvantaged rural However, to some extent, they reflected an overareas. reaction by both bankers and bank examiners Final elements of the March statement com- that has required the banking agencies to review mitted the agencies to enhance their examina- their supervisory policies and to clarify them tion appeals procedures and to take other steps when necessary. to improve the examination process, reduce regulatory uncertainty, review certain accounting policies, and, in general, work to reduce Real Estate Loans regulatory burden. Some of these initiatives and others were expanded through a series of joint Because real estate loans have contributed to statements issued earlier in June. Because they many of the recent problems within the banking are more recent actions, I will discuss them in industry, several of our policy statements have greater detail. focused on that topic—in particular to problems Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 783 in accounting for and evaluating real estate col- has clarified that creditors should report a loan as lateral. These problems may be especially impor- OREO only when they have taken possession of tant to the financing of small and medium-sized the collateral. The policy statement applied this businesses, which often rely heavily on real recent FASB change in accounting standards to estate collateral to support bank loans. the banking industry's regulatory reports. Al- One of the June 10 statements reaffirmed a though depository institutions must continue to November 1991 statement that emphasized it recognize losses on real estate loans that meet was not regulatory policy to value real estate the standards of in-substance foreclosure, the collateral that underlies real estate loans on a Federal Reserve believes that avoiding the desliquidation basis. Rather, the evaluation should ignation of OREO—combined with other initiabe based on the borrower's willingness and abil- tives being taken—will reduce impediments to ity to repay and on the income-producing capac- additional extensions of credit. ity of the underlying collateral over time. In a related area, the agencies have reached A decline in the collateral value below the several agreements relating to "special mention" book value of the loan does not require an assets, which are assets that demonstrate weakautomatic write-down or increased loss reserve if nesses but that are not weak enough to warrant the loan is performing and the cash flow appears classification. We now have a common definition adequate to service the outstanding balance. The for special mention assets and will not assign portion of the loan balance that is adequately loans to that status solely on the basis of docusecured by the value of the collateral should mentation exceptions that are not material to the generally be classified no worse than "substan- repayment of the asset. Moreover, the Federal dard." Moreover, when an institution has taken Reserve will continue its long-standing practice a sufficient charge-off so that the remaining re- of not including these assets in ratios used to corded balance of the loan is being serviced and measure asset quality. its collection is reasonably assured, classification of that balance may not be appropriate. The 1991 statement and the most recent reaf- Other Accounting Changes firmation intend to ensure that commercial real estate credits are evaluated in a consistent, pru- The agencies have also revised the criteria redent, and balanced fashion. The Federal Reserve quired for banks to remove loans from nonacwill continue to ensure that these policies are crual status. Currently, banks must place loans appropriately implemented. for which payments are past due for ninety days Other June statements relating to real estate or more on a nonaccrual status and must maincredits involve the accounting treatment of loans tain that status until all overdue payments are collateralized by real estate and, more generally, received and full collectibility is assured. This the reporting of nonperforming loans. The collat- requirement has sometimes overstated the severeralized loan issue relates to the matter of "in- ity of problem assets by failing to recognize substance" foreclosures and to the current ac- losses that banks had taken on the loans and counting practice of transferring such loans to subsequent improvements in the ability of borthe "Other Real Estate Owned" (OREO) cate- rowers to service the remaining balance. In turn, gory with recognition of appropriate losses. This the continued labeling of such loans as nonaccrupractice, which had been required under gener- ing loans places pressure on banks to increase ally accepted accounting practices (GAAP), has loan-loss reserves or capital levels and may tend increased the volume of OREO balances at banks to discourage additional loan growth. and may have discouraged lenders from working Effective immediately, banks may return nonwith borrowers that are encountering cash flow accruing loans to an accruing status under specor other financial problems. ified and less restrictive conditions than were Recently, the Financial Accounting Standards previously required. Essentially, a bank may do Board has issued Statement No. 114, "Account- so if a sufficient amount of a restructured loan ing by Creditors for Impairment of a Loan" and has been charged off and the borrower's pros- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 Federal Reserve Bulletin • August 1993 pects and recent payment experience indicate an To reduce or minimize regulatory burden on ability to perform under the restructured agree- the banking system that can arise from multiple ment. Loans that have not been formally restruc- examinations, the agencies have clarified and tured and partially charged off may also be reaffirmed the agreement that the federal regularestored to accrual status if required payments tory agency that has primary supervisory authorare being made and full repayment is expected ity for that entity will conduct the examination or under the originally contracted terms. inspection of a bank or bank holding company. Other agencies will rely on the reports of that agency and may, when necessary, participate in Coordinating Examinations the examination or inspection by the primary regulator. Although coordinated examinations The policy statement that relates to coordinating may not be practical in all cases, particular interagency examinations is principally intended emphasis for implementing this program will be to address costs to the industry of multiple or placed on large or weak institutions. The produplicative examinations. As required by law, gram also covers other information-sharing arvarious parts of a consolidated banking organi- rangements with both federal and state banking zation must be examined by different agencies— supervisors. the Office of the Comptroller of the Currency for On a separate, but related, issue, the Federal national banks; the FDIC for state nonmember Reserve is reviewing the merits of conducting on banks; and the Federal Reserve in the case of a more coordinated basis the various "special state member banks, parent holding companies, purpose" examinations, such as those for trust and nonbank subsidiaries. Reflecting this super- activities and computerized systems (EDP). The visory structure, for many years the banking possibility of also combining examinations for agencies have had supervisory procedures de- consumer compliance with those for safety and signed to avoid, or at least to minimize, overlap- soundness raises other issues, involving both ping efforts by relying on examinations or in- logistics and policy, particularly in the present spections conducted by an entity's primary reg- environment of emphasizing the enforcement of ulatory authority. laws that prohibit discriminatory lending. Nevertheless, industry trends have increased Although these different examinations have the real and perceived overlap in supervisory been traditionally conducted independently in procedures. Banking organizations have become recognition of the specialized training needed to more complex and integrated in conducting their review the disparate activities, in some cases it activities and have often given less consideration may be possible to perform two or more of these to the legal structure of their businesses. This reviews simultaneously and with less disruption pattern sometimes requires that examiners of one to the institution. Indeed, we are currently conentity discuss or evaluate activities conducted ducting on an experimental basis an examination elsewhere in the consolidated organization to of a state member bank in which several different understand and identify the risks. This situation examinations and the inspection of the parent increases the need for coordination among the bank holding company are being performed tobanking agencies. gether. The initial reactions to this approach by Looking forward, the requirement of FDICIA bankers and staff members of the Reserve Bank that the agencies conduct full scope, on-site have been positive. examination of each depository institution every year may increase the perception of overlapping examinations and greater regulatory burden. Al- Fair Lending Practices though annual examinations have been common for institutions that the Federal Reserve super- A crucial element in the series of recent policy vises, the legal requirement may increase the statements describes several initiatives related to visibility and on-site presence of examiners at fair lending practices. These initiatives were preinstitutions that other agencies supervise. ceded in late May with a letter, signed by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 785 heads of all four federal bank and thrift regula- which should help them recognize and correct tory agencies, to the chief executive officers of all potentially discriminatory policies and practices. U.S. depository institutions, which cited the Such educational programs for both bankers and importance of fair lending practices and stressed examiners have been, and will continue to be, an the commitment of the agencies to enforcing fair important part of the Federal Reserve's effort to credit laws. The letter also urged special consid- promote and enforce fair lending practices. eration to eleven specific fair lending activities, such as enhanced training, second review programs, and affirmative marketing and call pro- BANKING LAWS AND REGULATIONS grams. Subsequently, on June 10, the agencies an- Banking laws and regulations exist for reasons nounced development of a new training program that are critical to the smooth functioning of our in fair lending for experienced compliance exam- economic and social structure. We must, for iners and the initiation of related programs for example, minimize or prevent significant disrupsenior industry executives. These efforts and tions to the nation's financial and payment sysothers should increase the awareness of lenders tems; we must work to ensure that all citizens to the often subtle practices that disadvantage have fair access to credit; and we must also low-income and minority individuals. protect taxpayers, in general, from excessive The agencies are also exploring additional costs of bank failures. Nevertheless, the Federal methods of detecting discriminatory practices Reserve and the other banking agencies should and will improve their procedures for referring continually review their policies and procedures violations of the Equal Credit Opportunity Act to to avoid placing unnecessary burdens on the the Department of Justice. Each agency will also banking system. As conditions change, the need evaluate its consumer complaint system to deter- for, or effect of, banking laws should also be mine which improvements should be made to its reviewed. own procedures. In the meantime, the Federal In considering which steps to take, it is helpful Reserve has referred ten complaints that allege to be guided by fundamental principles of supermortgage credit discrimination to the Depart- vision and regulation. Both the Congress and the ment of Housing and Urban Development under regulatory agencies should have a clear underan interagency cooperation agreement signed last standing of why we supervise and regulate banks year. and what our goals are and should be. These In recent months the Federal Reserve has been goals should recognize the role of banks in our testing a statistical model, similar to that used in society and in financial markets. They should a study by the Federal Reserve Bank of Boston, also recognize the high level of competition in that is designed to assist examiners in analyzing these markets and the value of maintaining a the compliance of mortgage lenders with fair strong, vibrant, and competitive banking system. lending laws. This system does not, by itself, Our regulatory and supervisory goals should determine the presence of discrimination but not be to prevent banks from taking risks or to would serve as a tool to lead examiners more have a system that is so restrictive that no bank effectively to loan files that warrant closer review ever fails. Risk-taking is essential for economic for comparative analysis in making that determi- growth. Rather, the goals should focus on mainnation. The Federal Reserve has had educational taining economic and financial stability, ensuring programs in place for some time and will con- that businesses and consumers have adequate tinue to build upon them. For example, last year access to credit, and deterring excessive riskthe Federal Reserve Bank of Kansas City spon- taking that can arise because of the existence of sored a conference for bankers called "Credit deposit insurance and the overall structure of the and the Economically Disadvantaged." In addi- federal safety net. tion, the Federal Reserve Bank of Boston re- Banking laws and regulations should be comcently published a brochure for bankers on lend- patible with social objectives, and they should ing discrimination called "Closing the Gap," also contribute to minimizing costs to the public Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin • August 1993 when banks fail. However, they should not be complaining about their high regulatory costs, unnecessarily restrictive or suppress innovation and consumer advocates often stating that the and growth by attempting to micromanage bank- requirements have not accomplished their ining organizations. In view of this, it seems rea- tended goals. Unfortunately, when agency staff sonable that new laws or regulations be subject members revisit the relevant regulations, they to an appropriate cost-benefit analysis when they continued to believe that most of our specific are considered. requirements are required to implement the laws. The legislative and regulatory process should As is often the case when making public polalso recognize the role of supervisory actions, icy, few clear and simple answers to important which can adapt to specific factors and condi- and complex problems are evident. Further eftions at individual institutions much better than forts to reduce regulatory burden will undoubtcan laws and regulations that are necessarily edly raise difficult questions about the trade-offs more formulaic and rigid. In this connection, to be made between competing public policies. banks that pose less risk to the safety net or that As you know, I suggested to the subcommittee in demonstrate superior performance in certain February that one way of dealing with these areas should be permitted greater flexibility or issues may be to establish a nonpartisan commisexpanded powers than banks that have less fa- sion to explore possible legislative changes. Revorable performance records or that present gardless of the approach the Congress takes, the greater risks. Federal Reserve looks forward to working to find The Federal Reserve has often advocated sev- ways to improve the framework of banking laws eral elements of legislative change that I believe and regulations. the Congress should consider. They relate to the payment by the Federal Reserve of interest on required reserves, the elimination of barriers to CONCLUSION interstate branching, and the expansion of powers—especially those regarding securities under- In closing, I would mention that the Federal writing activities—for strong and well-managed Reserve has an ongoing program to review its banking organizations. Taking these steps would, regulations to monitor their effectiveness and I believe, improve the long-term outlook of the related burdens. I would also assure the subcom- U.S. banking system by helping it compete more mittee that the Federal Reserve is highly sensieffectively with many nonbank institutions that tive to the matter of regulatory burden and that are not similarly constrained in their activities or we seek to avoid imposing unnecessary or inefthat do not incur these and other regulatory fective requirements or constraints on the bankcosts. ing system. Nevertheless, the level of regulatory I would also hope that the principles I have burden has increased as new banking legislation outlined would be applied when considering the and implementing regulations are imposed. This need for future legislative changes that affect continuing and only additive process is taking a banks. Some laws, including those designed to significant and undesired toll that is easily meaachieve desired social goals, have extracted high sured by the declining share of U.S. financial regulatory compliance costs on banks, often with assets held by banks. questionable positive results. Banking institutions perform a vital and unique Last year, for example, representatives of the role in our economy by providing credit to all Federal Reserve and the other federal banking segments of our society, by facilitating payments agencies conducted a variety of "town meet- of goods and services, and by providing the ings" throughout the United States on regulatory mechanism for the conduct of monetary policy. burden. I participated in those meetings and If the banking system is to continue its role, it is believe that they provided useful insights into the incumbent on bankers to remember their longregulatory process and into areas that should be term interests and to conduct their activities reconsidered. Discussions often turned to con- responsibly. This means operating both prusumer compliance laws, with bankers generally dently and fairly and being responsive to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 787 credit needs of their communities. In doing oth- balanced fashion and with a broad perspective on erwise, banks risk the continued loss of market the role of banks in our society. Beyond that, to share and the prospects of still further rules and the extent existing laws and regulations can be regulations. reduced, made more efficient, or applied more Perhaps the most useful actions that bank equitably to broader segments of the financial regulators and lawmakers can take is to avoid industry, we may accomplish not only greater imposing additional competitive disadvantages fairness in lending but also greater fairness in on banks and to conduct their activities in a regulating. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 Announcements NOMINATIONS SOUGHT FOR APPOINTMENTS Reserve Bank services to facilitate the same-day TO CONSUMER ADVISORY COUNCIL settlement of checks. These services, which are effective immediately, The Federal Reserve Board announced on June 18, include the following: 1993, that it is seeking nominations of qualified individuals for seven appointments to its Consumer • Primary and alternate presentment point ser- Advisory Council to replace members whose terms vices for payor banks expire on December 31, 1993. • Supplementary payor bank information ser- The Consumer Advisory Council comprises vices for checks not collected through the Reserve thirty representatives of consumer and community Banks interests and of the financial services industry. The • A new Fedwire product code to facilitate council was established by the Congress in 1976, at settlement for checks presented to payor banks the suggestion of the Board, to advise the Board on directly by private sector banks. the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters The services are designed to facilitate a paying on which the Board seeks its advice. The council bank's responsibility to settle for checks presented by law represents the interests both of consumers by private sector banks and to enable paying banks and of the financial community. The group meets in to continue to provide timely cash management Washington, D.C., three times a year. information to their corporate customers. Seven new members will be selected from the The fee structures for the presentment point and nominations to serve three-year terms that will information services include daily minima and begin in January 1994. The Board expects to variable fees. announce the selection of new members by yearend 1993. Nominations should be submitted in writing SELECTED STATISTICAL DATA NOW and should include the address and telephone AVAILABLE ON COMPUTER DISKETTES number of the nominee. Also, past and present positions held, special knowledge, interests, or ex- The Federal Reserve Board announced on June 28, perience related to consumer credit or other con- 1993, that historical data covering six major sets of sumer financial services should be included. statistics are now available on computer diskettes. The written nominations must be received by Data are being provided in this format on flow of August 30, 1993, and should be addressed to funds, industrial production and capacity utiliza- Dolores S. Smith, Associate Director, Division of tion, monetary aggregates, reserves of depository Consumer and Community Affairs, Board of Gov- institutions, bank credit, and selected interest rates. ernors of the Federal Reserve System, Washington, The 3V2-inch, high-density (1.4 megabyte) dis- DC 20551. Information about nominees will be kettes are formatted for MS-DOS compatible comavailable for inspection on request. puters using DOS version 3.3 or higher. The data are contained in ASCII text files that have in some cases been compressed. Explanatory help texts are NEW SERVICES AVAILABLE TO FACILITATE included on the diskettes, as well as the software THE SAME-DAY SETTLEMENT OF CHECKS necessary to expand the files if necessary. The Federal Reserve Board announced on June 2, Each diskette is available from the Board's Pub- 1993, adoption of new and enhanced Federal lications Services, mail stop 402, Board of Gover- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

789 nors of the Federal Reserve System, Washington, source data, when these data are available, for the DC 20551. The cost is $25.00 per diskette. same period. A brief summary of the information contained The historical diskette contains data with various on each diskette follows. starting dates (the earliest is 1919). The ending date is December 1985 for all data. Flow of Funds (three diskettes, quarterly) Mortgage and Consumer Finance Seasonally adjusted quarterly flow of funds data (one diskette, monthly) from the Z.l statistical release are contained on diskette 1. The Z.l files begin with 1952:Q1 and Monthly statistics on consumer installment credit end with the most recently published quarter. Unadfrom the Board's G.19 statistical release, including justed flow of funds data are on diskette 2. seasonally adjusted and not seasonally adjusted Diskette 3 contains outstandings and annual data totals, along with not seasonally adjusted compofrom 1945 on the Balance Sheets for the U.S. nents, and interest rates, are contained on the dis- Economy that are published in the C.9 statistical kette. Some series begin with 1943. Data on securirelease. Monthly debt aggregate statistics begintized assets are available from 1989, and data on ning with January 1955 are also on diskette 3. interest rates are available from 1971. Updates to the debt aggregate are published weekly Monthly consumer finance company statistics in the Board's H.6 statistical release. from the Board's G.20 statistical release, including Data are stored in compressed files that correseasonally adjusted and not seasonally adjusted spond to tables in the releases. The diskettes are totals along with not seasonally adjusted comporeissued each quarter with revisions and updates at nents, are also on the diskette, as well as not the time the Z. 1 is released. seasonally adjusted Finance Company Quarterly Report data. Data on outstandings are available from 1980, and the Quarterly Report data are avail- Industrial Production and Capacity able from 1985. Data are updated on a monthly Utilization (two diskettes, monthly) basis at the time the G.19 and G.20 statistical releases are published. These data have been divided between a historical diskette containing data before 1986 and a more current monthly diskette containing data beginning in 1986. Monetary Aggregates The monthly diskette is available around the (one diskette, annually) eighteenth of each month and contains the data published in the Federal Reserve Board's G.17 This data set contains aggregate data on money statistical release on industrial output, capacity, and stock measures and liquid assets (Ml, M2, M3, and capacity utilization. Survey data on use of indus- L), as well as components of the money stock trial electric power are also included. The data measures and related items, as reported on the H.6 begin with January 1986 and end with the month of statistical release. The historical data reflect revithe most recently published industrial production sions that incorporate annual seasonal adjustment index. Data and documentation files on the diskette and benchmark changes. Data are updated annucorrespond to tables in the G.17 release. ally, generally in late February or early March. The April indexes that were first published on Monthly data are shown for the period 1959 the diskette issued in May reflect a revision to the through 1992. Weekly data, shown for the period industrial production and capacity utilization January 6, 1975, through January 4, 1993, are indexes. The revisions primarily reflect conversion based on weeks ending on Mondays to correspond of the indexes from 1987 forward to the 1987 with the reporting cycle under contemporaneous Standard Industrial Classification and the incorpo- reserve requirements. No data before 1975 have ration of more comprehensive annual and monthly been reconstructed on a weekly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Federal Reserve Bulletin • August 1993 Deposits have been benchmarked using Call turnover, seasonally adjusted and not seasonally Reports through June 1992 and incorporate data adjusted (as shown on the G.6 statistical release), revisions from other sources also. Seasonal factors are available from 1970 to date. have been revised using the X-ll ARIMA proce- Data and documentation files on the diskette dure adopted in 1982 with prior adjustments for correspond to the various statistical releases. special events, such as the introduction of new deposit accounts. Selected Interest Rates (one diskette, quarterly) Reserves of Depository Institutions (one diskette, annually) The diskette contains all items shown on the weekly H.15 statistical release, "Selected Interest This diskette contains data on aggregate reserves, Rates." The data include historical observations for borrowings from the Federal Reserve, and the mon- the interest rate variables at each available freetary base, as shown on the H.3 statistical release. quency of observation—generally business day, The data incorporate breaks in series resulting from weekly, monthly, and annual. Updated diskettes are the January 1993 indexations of the low reserve available the first week of each quarter and include tranche and the reserve requirement exemption data through the end of the previous quarter. levels, as well as the annual review of seasonal Both the starting dates for individual interest rate factors. Data are updated annually, usually in late series and the frequencies of the observations vary. March or early April. The less frequently observed transformations, such Monthly data are provided for the period January as monthly or annual, are usually available for 1959 through March 1993. Weekly data are pro- longer periods. The selection of specific frequency vided for the period January 7, 1959, to March 31, transformations conforms to market conventions 1993. for quoting those rates. For example, the federal funds rate is quoted daily and for statement weeks ending on Wednesday in contrast to the more com- Bank Credit (two diskettes, quarterly) mon convention of weeks ending on Friday for many other rates. These diskettes contain aggregate historical data on bank assets and liabilities and on bank debits. Weekly assets and liabilities, not seasonally ad- PROPOSED ACTION justed, for large domestic banks by national totals and by Federal Reserve District (as shown on the The Federal Reserve Board requested public com- H.4.2 statistical release) are available from 1988 to ment on a proposed interagency rule to amend date. Weekly assets and liabilities from large U.S. regulations regarding real estate appraisals, which branches and agencies of foreign banks, not season- are contained in the Board's Regulations H (Memally adjusted (also on the H.4.2), are available from bership of State Banking Institutions in the Federal 1989 to date. Weekly assets and liabilities for all Reserve System) and Y (Bank Holding Companies commercial banks and major bank groups, not sea- and Change in Bank Control). Comments were sonally adjusted (as shown on the H.8 statistical requested by July 19, 1993. release), are available from 1984 to date. Monthly assets for all commercial banks and major bank groups, seasonally adjusted and not PUBLICATION OF THE BANK HOLDING seasonally adjusted (as shown on the G.7 statistical COMPANY SUPERVISION MANUAL release), are available from 1972 to date, as are monthly nondeposit sources, seasonally adjusted The first revision to the December 1992 edition of and not seasonally adjusted (as shown on the G.10 the Bank Holding Company Supervision Manual statistical release). Monthly debits and deposit has been published by the Board's Division of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 791 Banking Supervision and Regulation and is now June 1993 revision may be obtained from Publicaavailable for purchase by the public. The Manual is tions Services, mail stop 402, Board of Governors used by Federal Reserve examiners in the super- of the Federal Reserve System, Washington, DC vision, regulation, and inspection of bank holding 20551. A copy of the Manual and its June 1993 companies and their subsidiaries. A copy of the revision supplement are available at a cost of revision is available for $4.00. The Manual and the $50.00. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

793 Legal Developments ORDERS ISSUED UNDER BANK HOLDING Upon consummation of this proposal, BBC would COMPANY ACT remain the largest commercial banking organization in Massachusetts, controlling deposits of $16 billion, Orders Issued Under Section 3 of the Bank representing approximately 30.9 percent of the total Holding Company Act deposits in commercial banking organizations in the state. Bank of Boston Corporation BBC and Multibank compete directly in nine bank- Boston, Massachusetts ing markets in Massachusetts.4 After considering the competition offered by commercial banks and thrift Order Approving the Acquisition of a Bank Holding institutions5 in all nine banking markets, the number of Company competitors remaining in the respective markets, the increase in market share and market concentration in Bank of Boston Corporation, Boston, Massachusetts each market,6 and all other facts of record, the Board ("BBC"), a bank holding company within the meaning concludes that consummation of the proposal would of the Bank Holding Company Act ("BHC Act"), has not have a significantly adverse effect on competition applied under section 3 of the BHC Act (12 U.S.C. in any relevant banking market. § 1842) to acquire all the voting shares of Multibank In evaluating these applications, the Board is re- Financial Corp., Dedham, Massachusetts ("Multi- quired, under the terms of section 3 of the BHC Act, to bank"), and thereby indirectly acquire South Shore consider the financial resources of the companies and Bank, Quincy; Mechanics Bank, Worcester; and banks involved, and the effect of this proposed acqui- Multibank West, Pittsfield; all in Massachusetts.1 sition on the future prospects of those organizations Notice of these applications, affording interested and institutions. The Board previously has stated that persons an opportunity to submit comments, has been a bank holding company should serve as a source of published (58 Federal Register 13,265 (1993)). The financial strength to its subsidiary banks and that the time for filing comments has expired, and the Board Board would closely examine the condition of an has considered these applications and all comments applicant and its subsidiaries in each case with this received in light of the factors set forth in section 3(c) of the BHC Act. BBC, with consolidated assets of $31.6 billion, 4. These markets are Amherst/Northampton, Boston, Cape Cod, Fall River, Fitchburg/Leominster, Springfield, Taunton, Worcester controls five banks in Connecticut, Massachusetts, and Providence. Vermont, Maine, and Rhode Island.2 BBC is the 5. The Board previously has indicated that thrift institutions have largest commercial banking organization in Massachu- become, or have the potential to become, significant competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve setts, controlling deposits of $13.8 billion, representing Bulletin 386 (1989); National City Corporation, 70 Federal Reserve approximately 26.7 percent of total deposits in com- Bulletin 743 (1984). Thus, the Board has regularly included thrift mercial banking organizations in the state.3 Multibank deposits in the calculation of market share on a 50 percent weighted basis. See, e.g., First Hawaiian Inc., 77 Federal Reserve Bulletin 52 is the sixth largest commercial banking organization in (1991). Massachusetts, controlling deposits of $2.2 billion, 6. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the representing approximately 4.2 percent of total depospost-merger Herfindahl-Hirschman Index ("HHI") is above 1800 is its in commercial banking organizations in the state. considered to be highly concentrated. In such markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points. However, the Justice Department has informed the Board that a bank merger or acquisition generally will not be 1. BBC proposes to merge its wholly owned subsidiary into Multi- challenged (in the absence of other factors indicating anti-competitive bank, with Multibank surviving the merger. In connection with the effects) unless the post-merger HHI is at least 1800 and the merger proposed acquisition, BBC also seeks approval to acquire an option to increases the HHI by 200 points. The Justice Department has stated purchase up to 19.9 percent of the voting shares of Multibank. This that the higher than normal HHI thresholds for screening bank mergers for anti-competitive effects implicitly recognize the competoption will become moot upon consummation of the proposed acquiitive effect of limited-purpose lenders and other non-depository finansition of all the shares of Multibank. cial entities. The increase in the HHI in each market in this case would 2. Asset data are as of March 31, 1993. be within the Justice Department guidelines. 3. State deposit data are as of June 30, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 Federal Reserve Bulletin • August 1993 consideration in mind. In this regard, the Board con- section 3 of the BHC Act are consistent with approval tinues to believe that bank holding companies contem- of these applications. plating expansion proposals must demonstrate suffi- Based on the foregoing, including the representacient financial flexibility necessary to meet unexpected tions and commitments described in this Order and problems in all their subsidiary banks. those made in connection with these applications, and BBC maintains that its improved financial condition all the facts of record, the Board has determined that and the benefits to be derived by BBC from the these applications should be, and hereby are, apacquisition, including, in particular, projected cost proved. The Board's approval is specifically condisavings and increased penetration of the small busi- tioned upon compliance by BBC with all the commitness loan market, support approval of the proposal. ments made in connection with these applications, The Board notes that BBC has capital levels well including its capital raising commitments and the conabove the minimums set forth in the Board's capital dition that this capital be maintained exclusively for adequacy guidelines,7 and that the acquisition will not use in addressing problems at BBC's subsidiary banks. significantly reduce its capital. For purposes of this action, these commitments and The Board has carefully evaluated this proposal in conditions will be considered conditions imposed in light of the Board's approval today of BBC's acquisi- writing and, as such, may be enforced in proceedings tion of Society for Savings Bancorp, Inc. ("Society"), under applicable law. and its savings bank subsidiary, Society for Savings, The acquisition shall not be consummated before both in Hartford, Connecticut. In the case of the the thirtieth calendar day following the effective date Society proposal, which represents a substantial ac- of this Order, or later than three months after the quisition of approximately $2.5 billion in total consol- effective date of this Order, unless such period is idated assets, the Board concluded that considerations extended for good cause by the Board or the Federal relating to the financial resources and future prospects Reserve Bank of Boston, acting pursuant to delegated of these institutions were, on balance, consistent with authority. approval. BBC's proposal to acquire Multibank, with By order of the Board of Governors, effective approximately $2.4 billion in total consolidated assets, June 9, 1993. would, in combination with the acquisition of Society, lessen BBC's capacity to serve as a source of strength Voting for this action: Chairman Greenspan and Governors for its banking subsidiaries. Angell, LaWare, and Phillips. Abstaining from this action: Governors Mullins, Kelley, and Lindsey. To address this, BBC has committed, in connection with its proposed acquisition of Multibank, to raise JENNIFER J. JOHNSON significant additional new capital prior to consummat- Associate Secretary of the Board ing this transaction. This new capital would provide additional financial flexibility to permit BBC to assimilate Multibank and Society into its organization and to Abstention Statement serve as a source of strength to Multibank and Society and its other subsidiary banks after the acquisition. The Board believes that this new capital should be Our abstention reflects our strong dissatisfaction with maintained to meet unexpected problems in BBC's the way in which this application was considered. A subsidiary banks, if necessary. Accordingly, the majority of the Board voted to deny the proposal as Board conditions its action in this case on BBC raising originally structured. While the Board was in the the proposed additional capital on or before consum- process of drafting an order reflecting its decision, mation of the acquisition of Multibank, and maintain- Applicant proposed a restructuring of its proposal to ing these funds exclusively for use in addressing raise additional capital. On the basis of Applicant's problems at its subsidiary banks. proposal to raise new capital, a majority of the Board On this basis, and based on all the facts of record, agreed to reconsider the proposal. the Board concludes that the financial and managerial We disagree with the Board's decision to consider resources and future prospects of BBC and Multibank, information that was submitted by the Applicant after and their respective subsidiaries, and the other super- the Board initially considered this case. Applicant had visory factors that the Board must consider under ample opportunity prior to the time that this matter was scheduled to be presented to the Board to make changes to its proposal. We believe that it impairs the integrity of the Board's decision-making process to permit an applicant to submit new information after 7. Capital Adequacy Guidelines, 12 C.F.R. 225, Appendices A, B, the Board has considered the record of the case and and D. 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Legal Developments 795 while the Board is in the process of issuing its deci- Notice of these applications, affording interested sion. persons an opportunity to submit comments, has been We are concerned that this permits the misuse of the published (58 Federal Register 6640 (1993)). The time application process. The Board expects applicants, for filing comments has expired, and the Board has prior to the time the Board considers an application, to considered these applications and all comments resubmit a detailed proposal that addresses all issues ceived in light of the factors set forth in section 3(c) of that the Board must consider. To do otherwise would the BHC Act.2 encourage applicants to submit marginal proposals and BBC, with consolidated assets of $31.6 billion, then attempt to negotiate an acceptable proposal di- controls five banks in Connecticut, Massachusetts, rectly with the Board. This cannot be permitted to Vermont, Maine, and Rhode Island.3 BBC is the happen if the Board is to act promptly, carefully and seventh largest commercial bank or thrift organization fairly on each application. ("depository institution") in Connecticut, controlling Thus, we believe that the Board should issue a deposits of $2 billion, representing approximately decision regarding each proposal that is put before the 3.4 percent of total deposits in depository institutions Board, as that proposal is structured at the time of the in the state.4 Society is the eighth largest depository Board's original consideration of the matter. Appli- institution in Connecticut, controlling deposits of cants that choose to restructure proposals are pres- $1.8 billion, representing approximately 3.2 percent of ently permitted to request that the Board consider new total deposits in depository institutions in the state. proposals developed in response to a published Board Upon consummation of this proposal, BBC would decision, but should not have an opportunity or any become the fourth largest depository institution in incentive to attempt to negotiate each proposal with Connecticut, controlling deposits of $3.8 billion, repthe Board. resenting approximately 6.6 percent of the total depos- While we find the specific process followed in this its in depository institutions in the state.5 case to be unacceptable, we also believe that the Applicant's new proposal, were it to be resubmitted in Competitive Considerations its current form, would be consistent with approval on the merits. BBC and Society compete directly in five banking markets in Connecticut: Bridgeport, Danbury, Hart- June 9, 1993 ford, New Haven, and Waterbury. Upon consummation of this proposal, all banking markets would re- Bank of Boston Corporation main moderately concentrated or unconcentrated as Boston, Massachusetts measured by the Herfindahl-Hirschman Index ("HHI").6 After considering the competition offered Order Approving the Acquisition of a Bank Holding Company Banking Commissioner. The Connecticut Banking Commissioner also Bank of Boston Corporation, Boston, Massachusetts has approved BBC's acquisition of Society. In connection with the proposed acquisition, BBC also seeks ("BBC"), a bank holding company within the meaning approval to acquire an option to purchase up to 19.9 percent of the of the Bank Holding Company Act ("BHC Act"), has voting shares of Society. This option will become moot upon consummation of the proposed acquisition of all of the shares of Society. applied under section 3 of the BHC Act (12 U.S.C. 2. The Board also has considered additional comments filed after § 1842) to acquire all of the voting shares of Society for the close of the public comment period. Under the Board's rules, the Savings Bancorp, Inc. ("Society"), and thereby indi- Board may in its discretion take into consideration the substance of such comments. 12 C.F.R. 262.3(e). rectly acquire Society for Savings ("Society Bank"), a 3. Asset data are as of March 31, 1993. state chartered savings bank, both of Hartford, Con- 4. State deposit data are as of June 30, 1992. necticut.1 5. The Board previously has determined that the interstate banking statute of Connecticut permits a Massachusetts bank holding company to acquire banking organizations in Connecticut. See Shawmut National Corporation, 74 Federal Reserve Bulletin 182, 183 (1988); 1. BBC proposes to merge its wholly owned subsidiary, Merger Bank of New England Corporation, 70 Federal Reserve Bulletin 374 Subsidiary, into Society, with Society surviving the merger. BBC also (1984); Bank of Boston Corporation, 70 Federal Reserve Bulletin 111 proposes to merge Society Bank into BBC's subsidiary bank, Bank of (1984). Thus, consummation of this transaction is not barred by Boston Connecticut, Waterbury, Connecticut ("Bank"), retaining the section 3(d) of the BHC Act (12 U.S.C. § 1842(d)). charter of Society Bank and the name of Bank. Bank will be owned 6. Under the revised Department of Justice Merger Guidelines (49 jointly by Society and Colonial Bancorp, Inc., Waterbury, Connecti- Federal Register 26,823 (June 29, 1984)), a market in which the cut ("Colonial"), a subsidiary bank holding company of BBC. In this post-merger HHI is less than 1000 is considered unconcentrated, and regard, Colonial has applied under section 3 of the BHC Act a market in which the post-merger HHI is between 1000 and 1800 is (12 U.S.C. § 1842) to acquire at least 25 percent of the voting shares considered moderately concentrated. The Justice Department has of Bank. The merger of Bank and Society Bank has been approved by informed the Board that a bank merger or acquisition generally will the Federal Deposit Insurance Corporation and by the Connecticut not be challenged (in the absence of other factors indicating anti- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 Federal Reserve Bulletin • August 1993 by other depository institutions in the market,7 the federal supervisory authority to "assess the institunumber of competitors remaining in the respective tion's record of meeting the credit needs of its entire markets, the relatively small increase in market share community, including low- and moderate-income and market concentration in the respective markets, neighborhoods, consistent with the safe and sound and all other facts of record, the Board concludes that operation of such institution," and to take that record consummation of the proposal would not have a into account in its evaluation of bank holding company significantly adverse effect on competition in any applications.9 relevant banking market.8 The Board has received comments from two organizations ("Protestants") critical of the efforts of BBC Convenience and Needs Considerations and Society to meet the credit and banking needs of their communities. In particular, Protestants allege In acting upon an application to acquire a depository that BBC and Society have failed to meet the credit institution under the BHC Act, the Board must con- and banking needs of residents in the Charter Oak/ sider the convenience and needs of the communities to Zion/Southwest Hartford community because both be served, and take into account the records of the institutions recently closed branches that service this relevant depository institutions under the Com- community.10 munity Reinvestment Act (12 U.S.C. § 2901 et seq.) The Board has carefully reviewed the CRA perfor- ("CRA"). The CRA requires the federal financial mance records of BBC and Society, and their respecsupervisory agencies to encourage financial institu- tive subsidiary banks, as well as all comments retions to help meet the credit needs of the local com- ceived regarding these applications, BBC's responses munities in which they operate, consistent with the to those comments, and all of the other relevant facts safe and sound operation of such institutions. To of record in light of the CRA, the Board's regulations, accomplish this end, the CRA requires the appropriate and the Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").11 competitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by 200 points. The Justice Department Record of Performance Under the CRA has stated that the higher than normal HHI thresholds for screening bank mergers for anti-competitive effects implicitly recognize the competitive effect of limited-purpose lenders and other non-deposi- A. CRA Performance Examinations tory financial entities. 7. Market deposit data are as of June 30,1991. Market share data are based on calculations in which the deposits of thrift institutions are The Agency CRA Statement provides that a CRA included at 50 percent. The Board previously has indicated that thrift examination is an important, and often controlling, institutions have become, or have the potential to become, major factor in the consideration of an institution's CRA competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 record and that these reports will be given great weight Federal Reserve Bulletin 743 (1984). Thus, the Board has regularly in the applications process.12 In this case, the Board included thrift deposits in the calculation of market share on a 50 percent weighted basis. See, e.g., First Hawaiian Inc., 11 Federal notes that all of BBC's subsidiary banks have received Reserve Bulletin 52 (1991). Because Society Bank would be merged "outstanding" or "satisfactory" ratings from their with a commercial bank under BBC's proposal, the deposits of primary regulators during the most recent examina- Society Bank are included at 100 percent in the calculation of the pro forma market share. See First Banks, Inc., 76 Federal Reserve tions of each institution's CRA performance. In par- Bulletin 669,670 n.9 (1990); Norwest Corporation, 78 Federal Reserve ticular, BBC's lead subsidiary bank, First National Bulletin 452 (1992). Bank of Boston, Boston, Massachusetts, received an 8. Upon consummation of this proposal, BBC would become the fourth largest of 22 depository institutions in the Bridgeport banking "outstanding" rating for CRA performance from its market, controlling deposits of $403.8 million, representing approxi- primary regulator, the Office of the Comptroller of the mately 6.5 percent of total deposits in depository institutions in the market ("market deposits"). The HHI would increase 18 points to Currency ("OCC"), in October 1992. Bank of Boston 1512. BBC would become the fourth largest of 25 depository institu- Connecticut, Waterbury, Connecticut ("Bank"), also tions in the Danbury banking market, controlling deposits of received an "outstanding" rating for CRA perfor- $167.2 million, representing approximately 7.4 percent of market deposits. The HHI would increase 15 points to 763. BBC would mance from its primary regulator, the Federal Deposit become the third largest of 54 depository institutions in the Hartford banking market, controlling deposits of $2.3 billion, representing approximately 12.4 percent of market deposits. The HHI would increase 38 points to 1686. In the New Haven banking market, BBC would become the fifth largest of 24 depository institutions, control- 9. 12 U.S.C. § 2903. ling deposits of $650.1 million, representing approximately 10.1 per- 10. Protestants allege that, because of these branch closings and cent of market deposits. The HHI would increase 35 points to 860. branch closings by other banks, the only source of banking services Finally, in the Waterbury banking market, BBC would remain within walking distance of their community is a single automatic teller the largest of 15 depository institutions, controlling deposits of machine ("ATM"). $860 million, representing approximately 33.4 percent of market 11. 54 Federal Register 13,742 (1989). deposits. The HHI would increase 109 points to 1733. 12. Id. at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 797 Insurance Corporation ("FDIC"), in February 1993.13 ing and closing offices was satisfactory.15 BBC has In addition, Society Bank received a "satisfactory" committed that the CRA policies and programs emrating from its primary regulator, the FDIC, in August ployed at Bank will be implemented at Society Bank. 1992. In this regard, Bank, which is the institution that will survive the merger with Society Bank, has formulated B. Branch Closings a formal branch closing policy that requires Bank to consider how each closing would impact the affected In response to Protestants' comments, BBC asserts communities. In particular, Bank, prior to a branch that neither of the branches closed by BBC and closure or reduction in service, reviews the viability of Society were located in Protestants' community.14 the existing office, as well as internal and external Moreover, BBC maintains that Bank continues to market conditions. Bank also has developed proceservice the Charter Oak/Zion/Southwest Hartford dures to analyze the effects of potential closings, and, community through its Goodwin Park branch at 2035 when a branch is to be closed, sets up a task force to Broad Street ("Goodwin Branch"), which is located coordinate such closing. This task force is responsible less than one-half mile from the described community. for providing advance notice of the closing to custom- The Goodwin Branch provides the community with ers and appropriate banking regulators. In addition, many banking services, including services expressly the task force communicates with employees, commudesigned to meet the needs of low- and moderate- nity leaders and organizations to help minimize any income customers. In particular, the Goodwin Branch negative impact the closing may have on the surroundprovides check cashing and food stamp services, as ing communities. well as services geared to the needs of local small businesses. The Goodwin Branch also offers two C. Additional Elements of CRA Performance drive-through teller stations, a 24-hour automatic teller machine ("ATM"), and a night depository. The Board also has considered other elements of the Bank also has been involved in programs that help CRA performance of BBC, Society, and their subsidmeet the credit needs of the Charter Oak/Zion/South- iary banks. The record indicates that BBC, Society west Hartford community. For example, Bank has and their subsidiary banks have in place the types of endeavored to ascertain community credit needs by policies outlined in the Agency CRA Statement that calling community organizations such as Project Hope contribute to an effective CRA program. For example, on New Britain Avenue (a nonprofit organization Bank has established two committees designed to providing educational and training services to low- ensure compliance with the CRA. The Board Commuincome clients); Warburton Community Church; and nity Investment Committee ("Board Committee") the Sisters of St. Joseph on Freeman Street. Bank also oversees Bank's CRA programs, reviews progress has conducted banking education seminars specifically toward meeting goals, and sets new CRA-related goals designed for low- and moderate-income consumers, when appropriate. The Community Investment Manand has provided credit counseling and home buyer agement Committee ("Management Committee"), seminars in the neighboring Frog Hollow section of which is made up of Bank business unit and depart- Hartford. Low- and moderate-income first-time home- ment managers, is responsible for the implementation buyers in the Charter Oak/Zion/Southwest Hartford of Bank's CRA program. The Management Committee community also are eligible for low-cost home pur- reports to the Board Committee at least quarterly to chase mortgages provided by Hartford Area Rallies update the status of Bank's CRA program. Together ("HART"), a partnership in which Bank Bank ascertains the credit needs of its community participates. through formal call programs and participation in The record in this case indicates that in the most various community and governmental organizations. recent CRA examinations of Bank and Society Bank, For example, branch managers and business unit the FDIC found that each institution's record of open- managers make calls in their communities to determine each community's needs and make recommendations to the Management Committee to fulfill those 13. BBC's other subsidiary banks have been most recently rated for CRA performance as follows: Bank of Vermont, Burlington, Vermont, received an "outstanding" rating from the FDIC in September 1991; Casco Northern Bank, N.A., Portland, Maine, received a "satisfactory" rating from the OCC in March 1991; and Rhode Island 15. The FDIC's most recent examination of Bank takes into account Hospital Trust, N.A., Providence, Rhode Island, received a "satis- all branch closings by Bank since the 1990 examination, including the factory" rating from the OCC in March 1991. closing of Bank's 440 New Park Avenue office, located near the 14. In March 1991, Bank closed its branch at 440 New Park Avenue Charter Oak/Zion/Southwest Hartford community. In this regard, located to the west of this community, and in May 1991, Society Bank's branch closing policy requires a 90-day advance notice to closed its Maple Avenue branch located to the community's east. customers and to the Connecticut State Banking Commissioner. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 Federal Reserve Bulletin • August 1993 needs. Bank also communicates with members of its Other Considerations community through the use of multilingual pamphlets on credit and deposit programs, and by hiring bilingual In evaluating these applications, the Board is repersonnel. quired, under the terms of section 3 of the BHC Act, Bank efforts for marketing its credit services and to consider the financial resources of the companies products include the use of neighborhood newspapers and banks involved and the effect of this proposed and radio advertisements to inform the community of acquisition on the future prospects of those organiits credit products. Bank also meets the credit needs of zations and institutions. The Board previously has its communities through programs such as First Com- stated that a bank holding company should serve as a munity Bank, which is expressly designed to serve the source of financial strength to its subsidiary banks, banking needs of low- and moderate-income consum- and that the Board would closely examine the coners and businesses. This program includes access to dition of an applicant and its subsidiaries in each case commercial, mortgage, and consumer lenders, ex- with this consideration in mind. In this regard, the panded outreach and personal service, educational Board continues to believe that bank holding compacredit seminars, services in English and Spanish, and nies contemplating expansion proposals must demspecial efforts to draw employees from the communi- onstrate sufficient financial flexibility necessary to ties its serves. Bank also participates in various loan meet unexpected problems in all of its subsidiary programs, including the Connecticut Student Loan banks. Foundation's Stafford and PLUS Loan Programs, the The Board has carefully considered BBC's ability Connecticut Housing Finance Authority mortgage to serve as a source of strength to its subsidiary program, as well as Federal Home Administration banks in this case. The Board believes that the plans ("FHA"), Veterans Administration ("VA"), and and projections for Society, when considered in light Small Business Administration ("SBA") loan proof BBC's improved financial condition and recent grams. equity raising efforts, demonstrate on balance a The Board has carefully considered the entire financial flexibility that is adequate to address unexrecord of the CRA performance of BBC, Society and pected problems that may be encountered after the their subsidiary banks, including the comments filed in Society acquisition in any of BBC's subsidiary this case by Protestants, in reviewing the convenience banks. On the basis of these and all facts of record, and needs factors under the BHC Act. Based on a the Board concludes that the financial and managerial review of the entire record of performance by Bank, and future prospects of BBC and Society, and their including the CRA examinations of the subsidiary respective subsidiaries, and the other supervisory banks of BBC and Society, the Board believes that the factors that the Board must consider under section 3 record of BBC, Society and their subsidiary banks in of the BHC Act are consistent with approval of these helping to meet the credit needs of all segments of the applications. communities they serve, including low- and moderate- Based on the foregoing, including the representaincome neighborhoods, are consistent with approval. tions and commitments described in this Order and For these reasons, and on the basis of all the facts of those made in these applications, and all the facts of record, the Board concludes that the convenience and record, the Board has determined that these applicaneeds considerations, including the CRA performance tions should be, and hereby are, approved. The of BBC, Society, and their subsidiary banks, are Board's approval is specifically conditioned upon consistent with approval of these applications.16 compliance by BBC with all the commitments made in connection with these applications. For purposes of this action, these commitments and conditions will 16. One of the Protestants has requested that the Board hold a both be considered conditions imposed in writing and, public meeting or hearing on these applications. The Board is not as such, may be enforced in proceedings under applirequired under section 3(b) of the BHC Act to hold a hearing on an cable law. application unless the appropriate banking authority for the bank to be acquired makes a timely written recommendation of denial of the The acquisition shall not be consummated before application. In this case, the Connecticut Banking Commissioner has the thirtieth calendar day following the effective date not recommended denial of the proposal. of this Order, or later than three months after the Generally under the Board's rules, the Board may, in its discretion, hold a public hearing or meeting on an application to clarify factual effective date of this Order, unless such period is issues related to the application, and to provide an opportunity for extended for good cause by the Board or the Federal testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Board has carefully considered this request. In the Board's view, interested parties have had a sufficient opportunity to present written submissions, and have submitted detailed written comments that have necessary to clarify the factual record in these applications, or been considered by the Board. On the basis of all the facts of record, otherwise warranted in this case. Accordingly, the request for a public the Board has determined that a public meeting or hearing is not meeting or hearing on these applications is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 799 Reserve Bank of Boston, acting pursuant to delegated aries in a variety of permissible nonbanking activiauthority. ties. First Northbrook, with total consolidated assets By order of the Board of Governors, effective of $240 million, is the 87th largest commercial bank- June 9, 1993. ing organization in Illinois, controlling $228.6 million in deposits, representing less than 1 percent of total Voting for this action: Chairman Greenspan and Governors deposits in commercial banks in the state. Upon Mullins, Angell, Kelley, La Ware, Lindsey, and Phillips. consummation of the proposal, Premier would become the 37th largest commercial banking organiza- JENNIFER J. JOHNSON tion in Illinois. Associate Secretary of the Board Premier and First Northbrook do not compete directly in any banking market. In light of all the facts of Premier Financial Services, Inc. record, the Board concludes that consummation of the Freeport, Illinois proposal would not have a significantly adverse effect on competition or the concentration of banking re- Premier Acquisition Company sources in any relevant banking market. Freeport, Illinois Based on all the facts of record, including all the commitments made in connection with these appli- Order Approving the Acquisition of a Bank cations, the Board concludes that the financial and managerial resources and future prospects of Pre- Premier Financial Services, Inc., Freeport, Illinois mier, its subsidiaries, and First Northbrook, as well ("Premier"), a bank holding company within the meanas the convenience and needs of the communities to ing of the Bank Holding Company Act ("BHC Act"), be served, and the other supervisory factors that has applied under section 3 of the BHC Act the Board must consider under section 3 of the (12 U.S.C. § 1842) to acquire First Northbrook Ban- BHC Act, are consistent with approval of this procorp, Inc., Northbrook, Illinois ("First Northbrook"), posal. Accordingly, and based on all the facts of and thereby indirectly acquire First National Bank of record, and these commitments, the Board has de- Northbrook, Northbrook, Illinois ("FNB Northtermined that the applications should be, and hereby brook"), and First Security Bank of Cary-Grove, Cary, are approved. Illinois, a state nonmember bank ("FSB Cary- The Board's approval of this proposal is expressly Grove").1 conditioned on compliance with the conditions refer- Notice of the applications, affording interested enced in this Order, and with all the commitments persons an opportunity to submit comments, has made in connection with this application, including the been published (58 Federal Register 6640 (1993)). commitments made by Premier, PAC, and the pro- The time for filing comments has expired, and the posed principal shareholders of Premier. The commit- Board has considered the applications and all comments and conditions relied on by the Board in reachments received in light of the factors set forth in ing its decision are both deemed to be conditions section 3(c) of the BHC Act. imposed in writing by the Board in connection with its Premier, with total consolidated assets of approxfindings and decision, and, as such, may be enforced in imately $361.7 million, is the 60th largest comproceedings under applicable law. mercial banking organization in Illinois, controlling This transaction shall not be consummated before $309.1 million in deposits, representing less than 1 the thirtieth calendar day following the effective date percent of total deposits in commercial banks in the of this Order, or later than three months after the state.2 Premier controls two bank subsidiaries in effective date of this Order, unless such period is Illinois,3 and engages directly and through subsidiextended for good cause by the Board or by the Federal Reserve Bank of Chicago, acting pursuant to delegated authority. By order of the Board of Governors, effective 1. As proposed, First Northbrook would be merged with and into June 14, 1993. Premier's wholly owned subsidiary, Premier Acquisition Company, Freeport, Illinois ("PAC"). Following the merger, PAC would be the surviving corporation, the separate corporate existence of First Voting for this action: Chairman Greenspan and Governors Northbrook would cease, and FNB Northbrook and FSB Cary-Grove Mullins, Kelley, La Ware, and Lindsey. Absent and not would become wholly owned direct subsidiaries of PAC. PAC has applied under section 3 of the BHC Act to become a bank holding voting: Governors Angell and Phillips. company. 2. Asset, deposit, and ranking data are as of March 31, 1993. JENNIFER J. JOHNSON 3. Those banks are First Bank North, Freeport, Illinois, and First Bank South, Dixon, Illinois, both state member banks. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 Federal Reserve Bulletin • August 1993 Orders Issued Under Section 4 of the Bank Private Placement and "Riskless Principal" Holding Company Act Activities Baraett Banks, Inc. Private placement involves the placement of new Jacksonville, Florida issues of securities with a limited number of sophisticated purchasers in a nonpublic offering. A financial Order Approving an Application to Engage in intermediary in a private placement transaction acts Private Placement and "Riskless Principal" solely as an agent of the issuer in soliciting purchasers, Activities and does not purchase the securities and attempt to resell them. Securities that are privately placed are not Baraett Banks, Inc., Jacksonville, Florida ("Appli- subject to the registration requirements of the Securicant"), a bank holding company within the meaning of ties Act of 1933, and are offered only to financially the Bank Holding Company Act ("BHC Act"), has sophisticated institutions and individuals and not to applied under section 4(c)(8) of the BHC Act the public. Applicant has committed that Company (12 U.S.C. § 1843(c)(8)) and section 225.23 of the will not privately place registered securities, and will Board's Regulation Y (12 C.F.R. 225.23) to engage only place securities with "institutional customers" as de novo through its subsidiary, Baraett Securities, that term is defined in section 225.2(g) of the Board's Inc., Jacksonville, Florida ("Company"), in acting as Regulation Y (12 C.F.R. 225.2(g)). agent in the private placement of all types of securi- "Riskless principal" is the term used in the securities, including providing related advisory services, and ties business to refer to a transaction in which a buying and selling all types of securities on the order of broker-dealer, after receiving an order to buy (or sell) investors as a "riskless principal." a security from a customer, purchases (or sells) the Notice of the application, affording interested per- security for its own account to offset a contemporanesons an opportunity to submit comments, has been ous sale to (or purchase from) the customer.3 "Riskpublished (58 Federal Register 17,401 (1993)). The less principal" transactions are understood in the time for filing comments has expired, and the Board industry to include only transactions in the secondary has considered the application and all comments re- market. Thus, Applicant proposes that Company ceived in light of the public interest factors set forth in would not act as a "riskless principal" in selling section 4(c)(8) of the BHC Act. securities at the order of a customer that is the issuer Applicant, with total consolidated assets of of the securities to be sold, or in any transaction where $39.6 billion, is the largest banking organization in Company has a contractual agreement to place the Florida, and the ninth largest banking organization in securities as agent of the issuer. Company also would Georgia.1 Applicant controls 29 bank subsidiaries in not act as a "riskless principal" in any transaction Florida, and four bank subsidiaries in Georgia, and involving a security for which it makes a market. engages directly and through subsidiaries in a broad The Board previously has determined by Order that, range of permissible nonbanking activities. subject to prudential limitations that address the po- Company is engaged in limited bank-ineligible secu- tential for conflicts of interests, unsound banking rities underwriting and dealing activities permissible practices, and other adverse effects, the proposed under section 20 of the Glass-Steagall Act (12 U.S.C. private placement and riskless principal activities are § 377).2 Company also is, and will continue to be, a closely related to banking as to be a proper incident broker-dealer registered with the Securities and Ex- thereto within the meaning of section 4(c)(8) of the change Commission ("SEC"), and a member of the BHC Act.4 The Board also previously has determined National Association of Securities Dealers, Inc. that acting as agent in the private placement of secu- ("NASD"). Accordingly, Company is subject to the rities, and purchasing and selling securities on the record-keeping, reporting, fiduciary standards, and order of investors as a "riskless principal", do not other requirements of the Securities Exchange Act of constitute underwriting and dealing in securities for 1934 (15 U.S.C. § 78a et seq. ), the SEC, and the purposes of section 20 of the Glass-Steagall Act NASD. (12 U.S.C. § 377), and that revenue derived from such activities is not subject to the 10 percent revenue limitation on bank-ineligible securities underwriting 1. Asset and ranking data are as of December 31, 1992. 3. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R. 2. Company may underwrite and deal in municipal revenue bonds, 240.10b-10(a)(8)(i). 1-4 family mortgage-related securities, commercial paper, and con- 4. See J.P. Morgan & Company Incorporated, 76 Federal Reserve sumer-receivable-related securities. See Barnett Banks, Inc., 75 Fed- Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corpoeral Reserve Bulletin 190 (1989). ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 801 and dealing.5 Applicant has committed that Company provide added convenience to Applicant's customers, will conduct its private placement and "riskless prin- and would increase the level of competition among cipal" activities using the same methods and proce- existing providers of these services. Accordingly, the dures, and subject to the same prudential limitations Board has determined that the performance of the established by the Board in Bankers Trust and J.P. proposed activities by Applicant could reasonably be Morgan,6 including the comprehensive framework of expected to produce public benefits that would outrestrictions designed to avoid potential conflicts of weigh possible adverse effects under the proper inciinterests, unsound banking practices, or other adverse dent to banking standard of section 4(c)(8) of the BHC effects imposed by the Board in connection with Act. underwriting and dealing in securities. Based on the foregoing and all the facts of record, the Board has determined to, and hereby does, ap- Financial Factors, Managerial Resources, and Other prove the application subject to all of the terms and Considerations conditions set forth in this Order, and in the above noted Board orders that relate to these activities. The In order to approve this application, the Board is Board's determination is also subject to all the terms required to determine that the performance of the and conditions set forth in Regulation Y, including proposed activities by Applicant can reasonably be those in sections 225.4(d) and 225.23(b), and to the expected to produce public benefits that outweigh Board's authority to require modification or terminaadverse effects under the proper incident to banking tion of the activities of a bank holding company or any standard of section 4(c)(8) of the BHC Act. In this of its subsidiaries as the Board finds necessary to regard, in every case under section 4 of the BHC Act, assure compliance with, and to prevent evasion of, the the Board considers the financial condition and re- provisions of the BHC Act, and the Board's regulasources of the applicant and its subsidiaries, and the tions and orders issued thereunder. The Board's decieffect of the proposed transaction on these resources.7 sion is specifically conditioned on compliance with all Based on the facts of this case, the Board concludes the commitments made in connection with this applithat the financial considerations are consistent with cation, including the commitments discussed in this approval of this application. The managerial resources Order and the conditions set forth in the above noted of Applicant also are consistent with approval. Board regulations and orders. These commitments and conditions shall be deemed to be conditions imposed Under the framework established in this and prior in writing by the Board in connection with its findings Board decisions, consummation of this proposal is not and decisions, and may be enforced in proceedings likely to result in any significantly adverse effects, under applicable law. such as an undue concentration of resources, decreased or unfair competition, conflicts of interests, or This transaction shall not be consummated later unsound banking practices. Moreover, the Board ex- than three months after the effective date of this pects that the de novo entry of Applicant into the Order, unless such period is extended for good cause market for the proposed private placement and "risk- by the Board or by the Federal Reserve Bank of less principal" services in the United States would Atlanta, pursuant to delegated authority. By order of the Board of Governors, effective June 23, 1993. 5. Id. 6. Among the prudential limitations detailed more fully in Bankers Voting for this action: Chairman Greenspan and Governors Trust and J.P. Morgan are that Company will maintain specific Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. records that will clearly identify all "riskless principal" transactions, and that Company will not engage in any "riskless principal" transactions for any securities carried in its inventory. When acting as a JENNIFER J. JOHNSON "riskless principal", Company will only engage in transactions in the Associate Secretary of the Board secondary market, and not at the order of a customer that is the issuer of the securities to be sold; will not act as "riskless principal" in any transaction involving a security for which it makes a market; and will Republic Bancorp, Inc. not hold itself out as making a market in the securities that it buys and Ann Arbor, Michigan sells as a "riskless principal". Moreover, Company will not engage in "riskless principal" transactions on behalf of its foreign affiliates that engage in securities dealing activities outside the United States and will not act as "riskless principal" for registered investment company Order Approving the Acquisition of a Savings securities. In addition, Company will not act as a "riskless principal" Association with respect to any securities of investment companies that are advised by Applicant or any of its affiliates. With regard to private placement activities, Applicant has committed that Company will not Republic Bancorp, Inc., Ann Arbor, Michigan ("Reprivately place registered investment company securities or securities public"), a bank holding company within the meaning of investment companies that are advised by Applicant or any of its affiliates. of the Bank Holding Company Act ("BHC Act"), has 7. 12 C.F.R. 225.25. applied pursuant to section 4(c)(8) of the BHC Act Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin • August 1993 (12 U.S.C. § 1843(c)(8)) and section 225.23 of the 1 percent of total deposits in thrift institutions in the Board's Regulation Y (12 C.F.R. 225.23), to merge state.5 with Horizon Financial Services, Inc. ("HFS"), and thereby indirectly acquire its savings association sub- Community Reinvestment Act Considerations sidiary, Horizon Savings Bank ("Horizon"), both of Beachwood, Ohio. Horizon would be owned by Re- In considering an application to acquire a savings public in accordance with section 225.25(b)(9) of the association under section 4 of the BHC Act, the Board Board's Regulation Y (12 C.F.R. 225.25(b)(9)).» reviews the records of performance of the relevant Notice of the application, affording interested per- institutions under the Community Reinvestment Act sons an opportunity to submit comments, has been (12 U.S.C. § 2901 et seq. ) ("CRA").* The CRA published (58 Federal Register 12,038 (1993)). The requires the Federal financial supervisory agencies to time for filing comments has expired, and the Board encourage financial institutions to help meet the credit has considered the application and all the comments needs of the local communities in which they operate, received in light of the public interest factors set forth consistent with the safe and sound operation of such in section 4(c)(8) of the BHC Act. institutions. To accomplish this end, the CRA requires The Board has determined that the operation of a the appropriate Federal supervisory authority to "assavings association is closely related to banking and sess an institution's record of meeting the credit needs permissible for bank holding companies. 12 C.F.R. of its entire community, including low- and moderate- 225.25(b)(9). In making this determination, the Board income neighborhoods, consistent with the safe and required that savings associations acquired by bank sound operation of the institution," and to take that holding companies conform their direct and indirect record into account in its evaluation of bank holding activities to those permissible for bank holding com- company applications.7 panies under section 4 of the BHC Act.2 In connection with this application, the Board has In considering an application under section 4(c)(8) of reviewed comments received from the Moorish Comthe BHC Act, the Board is required to determine that munity Redevelopment Corporation, Painesville, Ohio the applicant's ownership and operation of the ac- ("Protestant"), regarding Horizon's performance unquired company "can reasonably be expected to pro- der the CRA. In particular, Protestant alleges that duce benefits to the public, such as greater conve- Horizon does not have a formal program to ascertain nience, increased competition, or gains in efficiency, the credit needs of the communities it serves, includthat outweigh possible adverse effects, such as undue ing low- and moderate-income neighborhoods, and concentration of resources, decreased or unfair com- that Horizon does not market all of its available credit petition, conflicts of interests, or unsound banking products and services to these communities. Protespractices." 12 U.S.C. § 1843(c)(8). tant also asserts that Horizon has not designed credit Republic, with total consolidated assets of approxi- programs to attract low- and moderate-income and mately $743 million, controls six banks in Michigan.3 minority borrowers, does not participate in any gov- Republic is the 16th largest banking organization in ernmentally insured loan programs, and does not Michigan, controlling deposits of $474 million, repre- participate in any local community development or senting less than 1 percent of total deposits in com- redevelopment projects. mercial banking organizations in the state.4 Horizon is The Board has carefully reviewed the CRA perforthe 20th largest thrift organization in Ohio, controlling mance records of Republic and Horizon, as well as deposits of $336.6 million, representing less than Protestant's comments and Republic's responses to those comments, and all the other relevant facts in light of the CRA, the Board's regulations, and the Statement of the Federal Financial Supervisory Agen- 1. In connection with the proposed acquisition, Republic also has requested Board approval to acquire an option to purchase 19.9 percent of the voting shares of HFS. 5. State thrift deposit data are as of September 30, 1992. 2. Republic has committed to terminate all impermissible activities 6. The Board previously has determined that the CRA by its terms conducted by Horizon. In this regard, Republic has committed to generally does not apply to applications by bank holding companies to terminate the annuities and mutual funds sales activities currently acquire nonbanking companies under section 4(c)(8) of the BHC Act. engaged in by Horizon through its subsidiary, Horizon Financial The Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). The Insurance Agency, Inc., Beachwood, Ohio, upon or before consum- Board also has stated that, unlike other companies that may be mation of this proposal. Republic also has committed to divest any acquired by bank holding companies under section 4(c)(8) of the BHC impermissible real estate investments within two years of consumma- Act, savings associations are depository institutions, as that term is tion of this proposal, and not to engage in any new impermissible real defined in the CRA, and thus, acquisitions of savings associations are estate development projects or investments during this period. subject to review under the express terms of the CRA. Norwest 3. Asset data are as of March 31, 1993. Corporation, 76 Federal Reserve Bulletin 873 (1990). 4. State commercial bank deposit data are as of June 30, 1992. 7. 12 U.S.C. § 2903. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 803 cies Regarding the Community Reinvestment Act In this regard, the CRA compliance officers of each ("Agency CRA Statement").8 Republic bank subsidiary meet monthly to discuss The Board notes that Protestant's comments relate Republic's corporate programs and policies. Each to weaknesses in the CRA performance of the institu- bank subsidiary also is required to submit periodic tion Republic proposes to acquire. In this regard, the reports of its CRA performance ("CRA Reports") for Board has reviewed the CRA performance record of review by Republic. These CRA Reports provide Republic and Republic's commitment to implement its information on the bank affiliate's community involvepolicies and programs at Horizon. The Board also has ment and service, marketing and special credit related considered steps taken by Horizon to improve its CRA programs, and a description of the banking products performance. Moreover, Horizon's primary regulator, and services available at each affiliate's offices. The the Office of Thrift Supervision ("OTS"), has advised CRA Reports also provide specific information with the Board that these initiatives have addressed the respect to each affiliate's participation in community CRA performance issues noted by the OTS in Hori- meetings and programs. zon's last examination. At the holding company level, the CRA Reports are reviewed by Republic's Management Council, which A. CRA Performance Examination assesses each bank subsidiary's level of community involvement and CRA compliance. Following this The Agency CRA Statement provides that a CRA assessment, the Management Council allocates reexamination is an important, and often controlling, sources to ensure that each bank affiliate meets the factor in the consideration of an institution's CRA credit needs of its communities, including low- and record and that these reports will be given great weight moderate-income neighborhoods. Republic also emin the applications process.9 The Board notes that all ploys two individuals who are responsible for impleof Republic's subsidiary banks have received "out- menting its corporate CRA program at each bank standing" or "satisfactory" ratings during the most subsidiary. These individuals coordinate CRA training recent examinations of their CRA performance. In and testing of all loan officers at each Republic bank particular, Republic's lead subsidiary bank, Premier subsidiary, and conduct self-assessments of Repub- Bank, Jackson, Michigan, received an "outstanding" lic's overall CRA performance. These individuals rerating for CRA performance from its primary regula- port directly to Republic's board of directors. tor, the Federal Deposit Insurance Corporation Republic will monitor Horizon's CRA performance ("FDIC"), in December 1992.10 Horizon received a through its corporate CRA program and through peri- "needs to improve" CRA rating in its most recent odic telephone contacts with Horizon's newly apexamination by its primary regulator, the OTS, in pointed CRA officer. Republic's executive CRA com- January 1992. pliance officer will have overall responsibility, subject to oversight by Republic's board of directors, for B. Other Aspects of CRA Performance strengthening Horizon's CRA performance. In addition, Republic will add three individuals to Horizon's Policies and Programs. Republic has in place the board of directors to monitor improvements in Horitypes of policies outlined in the Agency CRA State- zon's CRA performance. ment to effectively monitor the CRA performance of Ascertainment and Marketing. Horizon has taken a each of its subsidiary banks. Upon consummation of number of steps to improve its ascertainment and this proposal, Republic will implement these policies marketing efforts. In particular, Horizon has increased at Horizon and has committed to report to the Federal its CRA training for all officers and employees, and has Reserve Bank of Chicago on the progress of Horizon enhanced its officer call program to ascertain commuwithin six months of consummation of this proposal. nity credit needs. In this regard, Horizon now emphasizes the submission of call reports by officers and directors, and has redesigned its reporting mechanisms to more effectively track loan officer calls in 8. 54 Federal Register 13,742 (1989). 9. Id. at 13,745. low- and moderate-income census tracts. Management 10. Republic's other subsidiary banks have received the following also has expanded its marketing efforts to include calls ratings from the FDIC in their most recent CRA examinations: on minority realtors and has allocated funds to adver- Republic Bank, Flint Township, Michigan, received a "satisfactory" rating in October 1991; Republic Bank, S.E., Bloomfield Hills, Mich- tise its credit products and services in media directed igan, received a "satisfactory" rating in January 1992; Republic at low- and moderate-income neighborhoods. Bank-Ann Arbor, Ann Arbor, Michigan, received a "satisfactory" rating in September 1992; Republic Bank-Central, Williamston, Mich- To aid in ascertaining community credit needs, igan, received a "satisfactory" rating in October 1991; and Republic Horizon plans to distribute customer satisfaction Bank-North, Bellaire, Michigan, received a "satisfactory" rating in January 1993. questionnaires, and will hold town hall meetings in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 Federal Reserve Bulletin • August 1993 municipalities where it has branch offices. In addi- Moreover, Republic will establish a Community Intion, Horizon continues to advertise available credit vestment Committee to assist Horizon's board of services through newspapers, statement stuffers, directors in its oversight of the institution's CRA lobby handouts, trade journals, magazines, mass performance. mailings, seminar presentations, broker sales calls, Upon consummation of this proposal, Horizon will and realtor mailings. offer FHA and VA guaranteed loans. In addition, Lending and Other Activities. Horizon has intro- Republic will consider participating in programs such duced products and services designed to meet the as Cleveland Action to Support Housing ("CASH"), credit needs of low- and moderate-income consumers. and the Afford-a-Home Program through the Cleve- For example, Horizon has developed a "Community land Housing Network. Homebuyers Program" that features 10-year to 30- In light of all the facts of record, including the steps year fixed rate mortgages, flexible underwriting crite- Horizon has taken to improve its CRA performance ria, and a reduction in the down payment requirement and the CRA programs that Republic will implement at and closing costs. Horizon also participates in the Horizon, the Board believes that considerations relat- Earned Home Ownership Program ("EHOP") ing to the convenience and needs of the communities through the Northeastern Ohio League of Savings to be served are consistent with approval of this Institutions. EHOP provides pre-purchase counseling application.12 and training to families unable to obtain traditional mortgages. Moreover, Horizon has adopted a formal Other Considerations branch closing policy that includes the views of local community groups. The banking subsidiaries of Republic and HFS do not In addition to implementing its corporate CRA pro- compete in any of the same banking markets. Accordgram at Horizon, Republic has identified steps specif- ingly, the Board concludes that this proposal would ically designed to improve Horizon's existing CRA not have a significantly adverse effect on competition program. In particular, Republic: in any relevant banking market. The financial and (i) Will appoint a new CRA officer at Horizon;11 managerial resources of Republic and its subsidiaries, (ii) Will develop additional procedures to improve and HFS and its subsidiaries also are consistent with Horizon's ability to make loans to minorities and to approval.13 residents of low- and moderate-income neighbor- Based on all the facts of record, the Board has hoods; determined that the balance of the public interest (iii) Will refocus Horizon on mortgage lending factors it must consider under section 4(c)(8) of the with further commercial lending oriented to SBA- BHC Act is favorable and consistent with approval of guaranteed lending; and (iv) Will consider participation in various special lending programs designed to assist residents of lowand moderate-income neighborhoods in purchasing homes. 12. Protestant has requested that the Board hold a public meeting or hearing on this application regarding Horizon's CRA-related activities in low- and moderate-income areas. The Board's rules Republic will implement a "second look process" in provide that a hearing is required under section 4 of the BHC Act which denied loan applications from minority appli- only if there are disputed issues of material fact that cannot be resolved in some other manner. In addition, the Board may, in its cants or applicants from low- and moderate-income discretion, hold a public hearing or meeting on an application to neighborhoods will be reviewed by a loan underwriting clarify factual issues related to the application, and to provide an opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e), manager. Republic also will implement an alternative 262.25(d), and 225.23(g). The Board has carefully considered this underwriting analysis in situations in which residents request. In the Board's view, interested parties have had a sufficient of low- and moderate-income neighborhoods are un- opportunity to present written submissions, and they have submitted detailed written comments that have been considered by the able to establish creditworthiness by traditional Board. Moreover, Protestant's allegations state conclusions about means. In appropriate cases, individuals also will be Horizon's CRA record without providing any underlying material given the opportunity to rebut negative credit informa- facts. On the basis of all the facts of record, the Board has determined that a public meeting or hearing is not necessary to tion that may impact their ability to receive a loan. clarify the factual record in this application or otherwise required under the Board's rules. Accordingly, the request for a public meeting or hearing on this application is hereby denied. 13. Upon consummation, Republic will meet all applicable capital 11. In this regard, Horizon, with Republic's assistance, recently has requirements and has committed that Horizon will meet all current hired a new CRA officer to implement and oversee Horizon's CRA and future minimum capital ratios adopted for savings associations by policy. This individual has extensive experience in mortgage banking the OTS or the FDIC. For purposes of this commitment, investments in Cleveland, as well as lending to individuals in low- and moderate- in impermissible real estate projects and developments will be exincome neighborhoods. cluded from the definition of capital. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 805 Republic's application to acquire HFS.14 Accord- ORDERS ISSUED UNDER INTERNATIONAL ingly, the Board has determined that the application BANKING ACT should be, and hereby is, approved. This approval is specifically conditioned on compliance by Republic Citizens National Bank with all of the commitments and conditions made in Seoul, Korea connection with this application. The acquisition of Horizon also is subject to all of the conditions Order Approving Establishment of a Representative contained in the Board's Regulation Y, including Office those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to the Board's author- Citizens National Bank, Seoul, Korea ("Bank"), a ity to require such modification or termination of the foreign bank within the meaning of the International activities of a bank holding company, or any of its Banking Act ("IBA"), has applied under section 10(a) subsidiaries, as it finds necessary to assure compli- of the IBA (12 U.S.C. § 3107(a)) to establish a repreance with, or prevent evasions of, the provisions and sentative office in Los Angeles, California. The Forpurposes of the BHC Act and the Board's regulations eign Bank Supervision Enhancement Act of 1991 and orders issued thereunder. All the commitments ("FBSEA"), which amended the IBA, provides that a and conditions relied on in reaching this decision in foreign bank must obtain the approval of the Board to this case are deemed to be conditions imposed in establish a representative office in the United States. writing by the Board in connection with its findings Notice of the application affording interested perand decision, and as such may be enforced in pro- sons an opportunity to submit comments has been ceedings under applicable law. published in a newspaper of general circulation in The transaction shall not be consummated later than Los Angeles (Los Angeles Times, April 23, 1992). The three months after the effective date of this Order, time for filing comments has expired and all comments unless such period is extended for good cause by the have been considered. Board or by the Federal Reserve Bank of Chicago, Bank, with $20.4 billion in consolidated assets,1 is acting pursuant to delegated authority. the largest in Korea in total domestic deposits and the By order of the Board of Governors, effective seventh largest in asset size. Bank has representative June 14, 1993. offices in New York, London, Tokyo, and Singapore, and a banking subsidiary in Luxembourg. Bank does Voting for this action: Chairman Greenspan and Governors not engage, directly or indirectly, in any nonbanking Mullins, Kelley, LaWare, and Lindsey. Absent and not activities in the United States. The proposed represenvoting: Governors Angell and Phillips. tative office would provide customer relations and other services and would conduct general financial and JENNIFER J. JOHNSON economic research. The majority of Bank's stock is Associate Secretary of the Board owned by the Government of Korea.2 In acting on an application to establish a representative office, the IBA and Regulation K provide that the Board shall take into account whether the foreign bank engages directly in the business of banking outside of the United States, has furnished to the Board the information it needs to assess adequately the application, and is subject to comprehensive supervision or regulation on a consolidated basis by its home country supervisor (12 U.S.C. § 3105(d)(2); 14. Protestant also asserts that Horizon has no affirmative action 12 C.F.R. 211.24). The Board may also take into plan to employ minorities. Because Horizon employs more than 50 account additional standards as set forth in the people and acts as an agent to sell or redeem U.S. savings bonds and notes, it is required by Treasury Department and Department of IBA (12 U.S.C. § 3105(d)(3)-(4)) and Regulation K Labor regulations to: (12 C.F.R. 211.24(c)). (1) File annual reports with the Equal Employment Opportunity The Board has previously stated that the standards Commission; and (2) Have in place a written affirmative compliance program which that apply to the establishment of a branch or agency states its intentions, efforts, and plans to achieve equal opportunity in the employment, hiring, promotion, and separation of personnel. Horizon also states that it contacts minority and women's groups in the Cleveland area when Horizon has job openings, that it takes steps 1. Data are as of December 31, 1991, unless otherwise noted. to ensure that minorities and women are given full opportunities for 2. The Government of Korea directly owns 72.58 percent of Bank. promotions and transfers, and that its supervisors have been informed The Korean Government Pension Management Corporation owns an of the importance of promoting equal employment opportunities. additional 6.42 percent of Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 Federal Reserve Bulletin • August 1993 need not in every case apply to the establishment of a annual examination includes a review of Bank's comrepresentative office because representative offices do pliance with Korean banking laws, regulations, and not engage in a banking business and cannot take orders issued by the Monetary Board, adequacy of the deposits or make loans (see 58 Federal Register 6348, internal control system, accounting procedures, the 6351 (1993)). In evaluating an application to establish a acquisition, management, quality, and disposition of representative office under the IB A and Regulation K, assets, capital adequacy, risk exposure, and liquidity. the Board will take into account the standards that Bank is required to file periodic financial reports with apply to establishment of branches and agencies, both the Ministry and OBSE. These reports include subject to the following considerations. With respect information on loan status, changes in deposits, conto supervision by home country authorities, a foreign ditions of borrowers with large delinquent loans, new bank that proposes to establish a representative office indices of borrowers with delinquent loans, and the must be subject to a significant degree of supervision status of internal auditing activities. The Ministry also by its home country supervisor. Among the factors the receives regular reports on foreign operations, includ- Board may consider are the extent to which there is ing audit reports and reports on transactions between regular review of a substantial portion of the bank's Bank and its affiliates. Based on all the facts of record, operations by the home country supervisor through which include the information described above, the examination, review of external audits, or a compara- Board concludes that factors relating to the supervible method, submission of periodic reports relating to sion of Bank by its home country supervisors are financial performance, and assurance that the bank consistent with approval of the proposed representaitself has a system of internal monitoring and control tive office. that enable bank management to administer properly The Board has also found that Bank engages directly the bank's operations. The home country supervisor in the business of banking outside of the United States must also have indicated that it does not object to the through its commercial banking operations in Korea, establishment of the representative office in the United and has provided the Board with the information States. necessary to assess the application through submis- A foreign bank's financial and managerial resources sions that address relevant issues. will be reviewed to determine whether its financial The Board has also taken into account the additional condition and performance demonstrate that it is ca- standards set forth in section 7 of the IBA and Regupable of complying with applicable laws and has an lation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. operating record that would be consistent with the 211.24(c)(2)). As noted above, Bank has received the establishment of a representative office in the United consent of the Ministry to establish the proposed States. If the financial condition of the foreign bank representative office. In addition, the Ministry and significantly differs from international norms, the for- OBSE may share information on Bank's operations eign bank would be evaluated to determine whether with other supervisors, including the Board. such difference can be justified in the context of the With respect to the financial and managerial reoperations of the applicant and the proposed represen- sources of Bank, Bank's overall record of operations tative office. All foreign banks, whether operating in its home country is consistent with the operation of through branches, agencies or representative offices, a representative office and demonstrates that Bank is will be required to provide adequate assurances of capable of operating within applicable law. Although access to information on the operations of bank and its Bank has not demonstrated that its capital position is affiliates necessary to determine compliance with U.S. in conformance with standards under the Basle Capital laws. Accord, given Bank's record of performance, its over- In this case, with respect to the issue of supervision all financial resources, and its standing with its home by home country authorities, the Board has consid- country supervisors, the Board has determined that ered the following information. Bank is subject to the financial and managerial factors are consistent with supervisory authority of the Korean Ministry of Fi- approval of the proposed representative office. Bank, nance ("Ministry"), the Board of Audit and Inspec- which currently operates a representative office in tion, and the Bank of Korea, including the Superinten- New York, appears to have the experience and capacdent of the Office of Bank Supervision and ity to support this additional representative office. Examination (the "OBSE"), a section within the Bank Bank has also established controls and procedures for of Korea. The Ministry has approved the establish- the proposed representative office to ensure compliment of the office by Bank. The Ministry and the ance with U.S. law. OBSE perform annual, on-site examinations of Bank. Bank has committed that it will make available to In addition, the Board of Audit and Inspection per- the Board such information on the operations of Bank forms annual examinations of Bank's head office. An and any affiliate of Bank that the Board deems neces- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 807 sary to determine and enforce compliance with the Medium Business Bank of Taiwan IBA, the Bank Holding Company Act of 1956, as Taipei, Taiwan amended, and other applicable Federal law, to the extent permitted by law. The Board has reviewed the Order Approving Establishment of a Representative restriction on disclosure to information in Korea, and Office has communicated with certain government authorities regarding access to information. In addition, Bank Medium Business Bank of Taiwan ("Bank"), Taipei, has committed to cooperate with the Board to obtain Taiwan, a foreign bank within the meaning of the approvals or consents that may be required for the International Banking Act ("IBA"), has applied under Board to gain access to information that the Board section 10(a) of the IBA (12 U.S.C. § 3107(a)) to may request. In light of these commitments and other establish a representative office in Los Angeles, Califacts of record, and subject to the condition described fornia. The Foreign Bank Supervision Enhancement below, the Board concludes that Bank has provided Act of 1991 ("FBSEA"), which amended the IBA, adequate assurances of access to any necessary infor- provides that a foreign bank must obtain the approval mation the Board may request. of the Board to establish a representative office in the On the basis of all the facts of record, and subject to United States. the commitments made by Bank, as well as the terms Notice of the application, affording interested perand conditions set forth in this Order, the Board has sons an opportunity to submit comments, has been determined that Bank's application to establish a rep- published in a newspaper of general circulation in resentative office should be, and hereby is, approved. Los Angeles, California (Los Angeles Daily Journal, If any restrictions on access to information on the April 30, 1992). The time for filing comments has operations or activities of Bank and any of its affiliates expired and all comments have been considered. subsequently interfere with the Board's ability to Bank is a commercial bank that was chartered in determine the compliance by Bank or its affiliates with 1976 through the reorganization of its predecessor, the applicable federal statutes, the Board may require Taiwan Mutual Loans and Savings Co., Ltd. Bank is termination of any of the Bank's direct or indirect owned by the Provincial Government of Taiwan activities in the United States. Approval of this appli- ("Provincial Government") both directly and through cation is also specifically conditioned on compliance the Bank of Taiwan, Taipei, Taiwan, which holds by Bank with the commitments made in connection 42 percent of the voting shares of Bank.1 with this application, and with the conditions con- Bank, with assets of $20.4 billion on June 30, 1992, tained in this Order.3 The commitments and conditions is the seventh largest bank in Taiwan. Bank has over referred to above are conditions imposed in writing by 100 offices in Taiwan and operates a representative the Board in connection with its decision, and may be office in the Netherlands and an offshore banking unit enforced in proceedings under 12 U.S.C. § 1818 or in Taiwan. Bank does not engage directly or indirectly 12 U.S.C. § 1847 against Bank, its offices, and its in any nonbanking activities in the United States. The affiliates. proposed representative office would provide services By order of the Board of Governors, effective that include acting as liaison with Bank's correspon- June 25, 1993. dents, providing customer relations services, and conducting research. Voting for this action: Chairman Greenspan and Governors In acting on an application to establish a represen- Mullins, LaWare, Lindsey, and Phillips. Absent and not tative office, the IBA and Regulation K provide that voting: Governors Angell and Kelley. the Board shall take into account whether the foreign bank engages directly in the business of banking JENNIFER J. JOHNSON outside of the United States, has furnished to the Associate Secretary of the Board Board the information it needs to assess adequately the application, and is subject to comprehensive supervision or regulation on a consolidated basis by its home country supervisor (12 U.S.C. § 3105(d)(2); 12 C.F.R. 211.24). The Board may also take into 3. The Board's authority to approve the establishment of the account additional standards as set forth in the IBA proposed representative office parallels the continuing authority of the State of California to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the State of California, and its agent, the California State Banking Department, to license the proposed representative office of Bank in 1. The Board approved the establishment of a branch by the Bank accordance with any terms or conditions that the California State of Taiwan under the FBSEA. See Bank of Taiwan, 79 Federal Reserve Banking Department may impose. Bulletin 541 (1993). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 Federal Reserve Bulletin • August 1993 and Regulation K (12 U.S.C. § 3105(d)(3)-(4); Basle Capital Accord, given Bank's record of perfor- 12 C.F.R. 211.24(c)). mance, its overall financial resources, and its standing The Board has previously stated that the standards with its home country supervisors, the Board has that apply to the establishment of a branch or agency determined that financial and managerial factors are need not in every case apply to the establishment of a consistent with approval of the proposed representarepresentative office because representative offices do tive office. The proposed representative office would not engage in a banking business and cannot take be Bank's second foreign office, and Bank appears to deposits or make loans. See 58 Federal Register 6348, have the experience and capacity to support this 6351 (1993). In evaluating an application to establish a additional representative office. Bank has also estabrepresentative office under the IBA and Regulation K, lished controls and procedures for the proposed repthe Board will take into account the standards that resentative office to ensure compliance with U.S. law. apply to establishment of branches and agencies, Bank has committed that it will make available to subject to certain considerations relating to financial the Board such information on the operations of Bank factors and supervision by home country authorities. and any affiliate of Bank that the Board deems neces- See Citizens National Bank, 79 Federal Reserve Bul- sary to determine and enforce compliance with the letin 805 (1993). IBA, the Bank Holding Company Act of 1956, as Bank is subject to supervision and regulation by the amended, and other applicable Federal law, to the Ministry of Finance of Taiwan ("Ministry"), the Cen- extent permitted by law. The Board has reviewed the tral Bank of China ("Central Bank"), and the Ministry restrictions on disclosure of information in Taiwan and of Audit of Taiwan in the same manner as other banks has communicated with certain government authorifrom Taiwan that the Board, in considering applica- ties concerning access to information. The Ministry tions by those banks to establish branches or agencies, and Central Bank may share information on Bank's has determined are subject to comprehensive home operations with other supervisors, including the country supervision on a consolidated basis.2 Because Board. Bank also has committed to cooperate with the Bank is supervised by the Taiwanese authorities on Board to obtain any approvals or consents that may be needed to gain access to information that the Board the same terms and conditions set forth in the Board's may request. In light of these commitments and other Orders relating to those applications, the Board has facts of record, and subject to the condition described determined that Bank is subject to comprehensive below, the Board concludes that Bank has provided supervision or regulation by its home country superadequate assurances of access to any necessary inforvisors on a consolidated basis. mation the Board may request. The Board also has found that Bank engages directly in the business of banking outside of the United States On the basis of all of the facts of record, and subject through its commercial banking operations in Taiwan, to the commitments made by Bank, as well as the and has provided the Board with the information terms and conditions set forth in this Order, the Board necessary to assess the application through submis- has determined that Bank's application to establish a sions that address relevant issues. representative office should be, and hereby is, ap- The Board has taken into account the additional proved. If any restrictions on access to information on standards set forth in section 7 of the IBA and Regu- the operations or activities of Bank or any of its lation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. affiliates subsequently interfere with the Board's abil- 211.24(c)(2)). In this regard, Bank has received the ity to determine the compliance by Bank or its affiliconsent of the Ministry to establish the proposed ates with applicable federal statutes, the Board may representative office. In addition, the Ministry and require termination of any of the Bank's direct or indirect activities in the United States. Approval of Central Bank may share information on Bank's operthis application is also specifically conditioned on ations with other supervisors, including the Board. compliance by Bank with the commitments made in With respect to the financial and managerial reconnection with this application, and with the condisources of Bank, Bank's overall record of operations tions contained in this Order.3 The commitments and in its home country demonstrates that Bank is capable of operating within applicable law and is consistent with the operation of a representative office. Although Bank has not demonstrated that its capital position is 3. The Board's authority to approve the establishment of the in conformance with international standards under the proposed representative office parallels the continuing authority of the State of California to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the State of California, and its agent, the California State Banking 2. See TaipeiBank, 79 Federal Reserve Bulletin 143 (1993); Chiao- Department, to license the proposed representative office of Bank in Tung Bank, 79 Federal Reserve Bulletin 541 (1993); Bank of Taiwan, accordance with any terms or conditions that the California State supra. Banking Department may impose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 809 conditions referred to above are conditions imposed in Board the information it needs to assess adequately writing by the Board in connection with its decision, the application, and is subject to comprehensive suand may be enforced in proceedings under 12 U.S.C. pervision or regulation on a consolidated basis by its § 1818 or 12 U.S.C. § 1847 against Bank, its offices, home country supervisor (12 U.S.C. § 3105(d)(2)). and its affiliates. The Board may also take into account additional By order of the Board of Governors, effective standards as set forth in the IBA and Regulation K June 25, 1993. (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)). The Board has previously stated that the standards Voting for this action: Chairman Greenspan and Governors that apply to the establishment of a branch or agency Mullins, LaWare, Lindsey, and Phillips. Absent and not need not in every case apply to the establishment of a voting: Governors Angell and Kelley. representative office because representative offices do not engage in a banking business and cannot take JENNIFER J. JOHNSON deposits or make loans. See 58 Federal Register 6348, Associate Secretary of the Board 6351 (1993). In evaluating an application to establish a representative office under the IBA and Regulation K, Singer & Friedlander, Ltd. the Board will take into account the standards that London, England apply to establishment of branches and agencies, subject to certain considerations relating to financial Order Approving Establishment of a Representative factors and supervision by home country authorities. Office See Citizens National Bank, 79 Federal Reserve Bulletin 805 (1993). Singer & Friedlander, Ltd., London, England, Bank is subject to supervision and regulation by the ("Bank"), a foreign bank within the meaning of the Bank of England. The Board has previously deter- International Banking Act ("IBA"), has applied under mined, in connection with an application involving a section 10(a) of the IBA (12 U.S.C. § 3107(a)) to particular bank in the United Kingdom, that the U.K. establish a representative office in Miami, Florida. The bank was subject to home country supervision on a Foreign Bank Supervision Enhancement Act of 1991 consolidated basis.2 In this case, the Board has deter- ("FBSEA"), which amended the IBA, provides that a mined that Bank is supervised in its banking operaforeign bank must obtain the approval of the Board to tions by the Bank of England on the same terms and establish a representative office in the United States. conditions as set forth in the earlier Order. Bank is Notice of the application, affording interested peralso subject to rules of self-regulatory organizations sons an opportunity to submit comments, has been that act under authority delegated by the Department published in a newspaper of general circulation in of Trade and Industry to the Securities and Investment Miami, Florida {Miami Herald, July 10, 1992). The Board ("SIB"). The SIB establishes general principles time for filing comments has expired and all comments that other self-regulatory organizations ("SROs") aphave been considered. ply to firms engaged in particular types of investment Bank is a merchant bank chartered in the United activities. Bank is a member of two such SROs, the Kingdom. Bank, with assets of $1.3 billion, is wholly Securities and Futures Authority ("SFA") and the owned by Singer and Friedlander Group, PLC ("Sing- Investment Management Regulatory Organization er Group"), London, England, through two U.K. ("IMRO"). holding companies, Ancomass, Ltd., and Singer & With respect to the supervision of the investment Friedlander Holdings, Ltd.1 The proposed representaactivities of Bank, the Bank of England acts as the lead tive office is intended to assist in the Bank's internaregulator of Bank.3 As lead regulator, the Bank of tional financial and banking activities that are focused England meets with the SFA and IMRO periodically to on Latin America and the United States. The office discuss prudential and supervisory matters pertaining also will act as a liaison between Bank, its U.S. and to Bank. In addition, the SFA and IMRO ensure that Latin American customers, and its correspondent banks. In acting on an application to establish a represen- 2. See Coutts & Co. AG, 79 Federal Reserve Bulletin 636 (1993), tative office, the IBA and Regulation K provide that with respect to supervision of National Westminster Bank, PLC. 3. The Bank of England has entered Memoranda of Understanding the Board shall take into account whether the foreign ("MOU") with the SFA and IMRO that create frameworks for the bank engages directly in the business of banking monitoring and assessment of financial soundness of institutions authorized under both the Banking Act and the Financial Services Act outside of the United States, has furnished to the in order to avoid duplication of oversight. The MOU does not affect either the Bank's or the self-regulatory organizations' statutory duties to ensure that Bank remains "fit and proper" from both financial and 1. Data are as of December 31, 1992, unless otherwise noted. managerial standpoints. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 Federal Reserve Bulletin • August 1993 Bank is fit and proper to engage in securities and that may be needed to gain access to information that investment management activities through tests of the may be requested by the Board. In addition, the Bank integrity and competence of Bank's management and of England and other regulators may share information the financial soundness of Bank. In light of all the facts on Bank's operations with other supervisors, including of record, the Board has determined that Bank is the Board. In light of these commitments and other subject to comprehensive supervision or regulation by facts of record, and subject to the condition described home country supervisors on a consolidated basis. below, the Board concludes that Bank has provided The Board has also found that Bank engages directly adequate assurances of access to any necessary inforin the business of banking outside of the United States mation the Board may request. through its commercial banking operations in England, On the basis of all of the facts of record, and subject and has provided the Board with the information to the commitments made by Bank, as well as the necessary to assess the application through submis- terms and conditions set forth in this order, the Board sions that address relevant issues. has determined that Bank's application to establish a The Board has also taken into account the additional representative office should be, and hereby is, apstandards set forth in section 7 of the IBA and Regu- proved. If any restrictions on access to information on lation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. the operations or activities of Bank or any of its 211.24(c)(2)). In this regard, the Board notes that the affiliates subsequently interfere with the Board's abil- Bank of England does not object to the establishment ity to determine the compliance by Bank or its affiliof the proposed representative office. In addition, the ates with applicable Federal banking statutes, the Bank of England may share information on Bank's Board may require termination of any of the Bank's operations with other supervisors, including the direct or indirect activities in the United States. Ap- Board. With respect to financial and managerial re- proval of this application is also specifically condisources of Bank, given Bank's record of operations in tioned on compliance by Bank with the commitments its home country, its overall financial resources, and made in connection with this application, and with the its standing with its home country supervisors, the conditions contained in this order.4 The commitments Board has determined that financial and managerial and conditions referred to above are conditions imfactors are consistent with approval of the proposed posed in writing by the Board in connection with its representative office. Bank appears to have the expe- decision, and may be enforced in proceedings under rience and capacity to support the proposed office and 12 U.S.C. § 1818 or 12 U.S.C. § 1847 against Bank, its has also established controls and procedures for the office and its affiliates. proposed representative office to ensure compliance By order of the Board of Governors, effective with U.S. law. June 25, 1993. Bank has committed that it will make available to the Board such information on the operations of Bank Voting for this action: Chairman Greenspan and Governors and any affiliate of Bank that the Board deems neces- Mullins, La Ware, Lindsey, and Phillips. Absent and not sary to determine and enforce compliance with the voting: Governors Angell and Kelley. IBA, the Bank Holding Company Act of 1956, as JENNIFER J. JOHNSON amended, and other applicable Federal law, to the Associate Secretary of the Board extent permitted by law. The Board has reviewed the restrictions on disclosure in relevant jurisdictions in which Bank operates and has communicated with certain government authorities concerning access to 4. The Board's authority to approve the establishment of the information. The Board notes that certain of Bank's proposed representative office parallels the continuing authority of the State of Florida to license offices of a foreign bank. The Board's affiliates may not provide information without the approval of this application does not supplant the authority of the consent of third parties. In this regard, each of Bank State of Florida, and its agent, the Florida State Banking Department, and Singer Group also has committed to cooperate to license the proposed representative office of Bank in accordance with any terms or conditions that the Florida State Banking Departwith the Board to obtain any approvals or consents ment may impose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 811 ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By the Secretary 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 TT Bank Holding Company Thrift Bank(s) Date First Bank System, Inc., Colorado National Bank, Central Bank/Bank June 24, 1993 Minneapolis, Minnesota Denver, Colorado Western N.A., Denver, Colorado ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By Federal Reserve Banks 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 BB&T Financial Corporation, Carolina Bank, Branch Banking and June 11, 1993 Wilson, North Carolina Wilmington, North Trust Company, Carolina Wilson, North Carolina BB&T Financial Corporation, Edenton Bank, Branch Banking and June 11, 1993 Wilson, North Carolina Edenton, North Trust Company, Carolina Wilson, North Carolina Britton & Koontz Capital Natchez First Federal Britton & Koontz June 10, 1993 Corporation, Savings Bank, First National Natchez, Mississippi Natchez, Mississippi Bank, Natchez, Mississippi Commerce Bancorp, Anchor Savings Bank, Commerce Bank, June 9, 1993 Cherry Hill, New Jersey FSB, N.A., Hewlett, New York Cherry Hill, New Jersey First Citizens BancShares, Inc., Pioneer Savings Bank, First-Citizens Bank & June 1, 1993 Raleigh, North Carolina Inc., Trust Company, Rocky Mount, North Raleigh, North Carolina Carolina First Staunton Bancshares, Inc., Benld Loan Association, The First National June 18, 1993 Staunton, Illinois Benld, Illinois Bank in Staunton, Staunton, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 Federal Reserve Bulletin • August 1993 FDICIA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date First Union Corporation, Meritor Savings, F.A., Dominion Bank, May 21, 1993 Charlotte, North Carolina Winter Haven, Florida N.A., Roanoke, Virginia First Union Corporation, Meritor Savings, F.A., Dominion Bank of May 21, 1993 Charlotte, North Carolina Winter Haven, Florida Maryland, N.A., Rock ville, Maryland First Union Corporation, Meritor Savings, F.A., Dominion Bank of May 21, 1993 Charlotte, North Carolina Winter Haven, Florida Washington, N.A., Washington, D.C. First Union Corporation, Meritor Savings, F.A., First Union National May 21, 1993 Charlotte, North Carolina Winter Haven, Florida Bank of Florida, Jacksonville, Florida Independent Bank Corporation, Community First Bank, Independent Bank, June 22, 1993 Ionia, Michigan FSB, Ionia, Michigan Lansing, Michigan Lake Bancshares Corporation, Cimarron Federal Savings Bank of the Lakes, May 21, 1993 Langley, Oklahoma Association, Langley, Oklahoma Muskogee, Oklahoma Shoreline Financial Corporation, Standard Federal Bank, Citizens Trust and May 24, 1993 Benton Harbor, Michigan F.S.B., Savings Bank, Troy, Michigan South Haven, Michigan Inter-City Bank, Benton Harbor, Michigan Southern BancShares (N.C.), Pioneer Savings Bank, Southern Bank and June 3, 1993 Inc., Inc., Trust Company, Mount Olive, North Carolina Rocky Mount, North Mount Olive, North Carolina Carolina SouthTrust Corporation, Federal Trust Bank, SouthTrust Bank of June 8, 1993 Birmingham, Alabama F.S.B., Jacksonville, N.A., SouthTrust of Florida, Inc., Winter Park, Florida Jacksonville, Jacksonville, Florida Florida Texas Bancshares, Inc., Alice Branch of First First National Bank May 25, 1993 San Antonio, Texas Federal Savings Bank, of South Texas, San Antonio, Texas Rio Grande City, Texas United Carolina Bancshares Home Federal Savings United Carolina June 10, 1993 Corporation, Bank of Eastern North Bank, Whiteville, North Carolina Carolina, White ville, North Greenville, North Carolina Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 813 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Applicant(s) Bank(s) ^^Date^ Trans Financial Bancorp, Inc., Trans Kentucky Bancorp, June 4, 1993 Bowling Green, Kentucky Pikeville, Kentucky Section 4 . .. . Nonbanking Effective Activity/Company Date Midland Capital Company, Near Northwest Community June 11, 1993 Oklahoma City, Oklahoma Corporation, Oklahoma City, Oklahoma Old National Bancorp, ONB Investment Services, Inc., June 23, 1993 Evansville, Indiana Evansville, Indiana 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 215 Holding Co., Southeast Minneapolis June 21, 1993 Minneapolis, Minnesota Bancorporation, Inc., Minneapolis, Minnesota Allendale Bancorp., Inc., The First National Bank St. Louis June 16, 1993 Allendale, Illinois of Allendale, Allendale, Illinois AmSouth Bancorporation, Mickler Corporation, Atlanta June 2, 1993 Birmingham, Alabama Clearwater, Florida A.N.B. Holding Company, Ltd., The American National Dallas June 9, 1993 Terrell, Texas Bank of Terrell, Terrell, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

814 Federal Reserve Bulletin • August 1993 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date The Banc Ed Corp., The Bank of St. Louis May 26, 1993 Edwardsville, Illinois Edwardsville, Edwardsville, Illinois The Bank of New York National Community New York May 28, 1993 Company, Inc., Banks, Inc., New York, New York West Paterson, New Jersey BancWest Bancorp, Inc., Kyle State Bank, Dallas June 9, 1993 Austin, Texas Kyle, Texas Big Bend Bancshares Corp., The Marfa National Bank, Dallas June 2, 1993 Presidio, Texas Marfa, Texas Rio Bancshares Corporation, Wilmington, Delaware Birthright, Inc., First Tuskegee Bank, Atlanta June 18, 1993 Wilmington, Delaware Tuskegee, Alabama Boatmen's Bancshares, Inc., FCB Bancshares, Inc., St. Louis June 14, 1993 St. Louis, Missouri Merriam, Kansas Centura Banks, Inc., Interim Bank, Richmond June 4, 1993 Rocky Mount, North Carolina Granite Falls, North Carolina Chico Bancorp, Inc., The First State Bank of Dallas June 22, 1993 Chico, Texas Chico, Chico, Texas Citizens Bancshares of El Reno, Citizens National Bank & Kansas City June 1, 1993 Inc., Trust Co. of El Reno, El Reno, Oklahoma El Reno, Oklahoma C.S.B. Bancshares, Inc., Citizens State Bank, Dallas May 27, 1993 Somerville, Texas Somerville, Texas The Donley County State Bank The Donley County State Dallas May 24, 1993 Holding Company, Bank, Clarendon, Texas Clarendon, Texas The Estes Park Bank Restated Estes Bank Corporation, Kansas City May 26, 1993 Employees Stock Ownership Estes Park, Colorado 401(k) Plan and Retirement Trust, Estes Park, Colorado Fairfield Bancshares, Inc., Fairfield National Bank, St. Louis June 3, 1993 Fairfield, Illinois Fairfield, Illinois First Bancorporation, Inc., First Bank of Sparta, Chicago June 9, 1993 Sparta, Wisconsin Sparta, Wisconsin First National Beatrice First National Beatrice Kansas City June 1, 1993 Corporation Employee Stock Corporation, Ownership Plan, Beatrice, Nebraska Beatrice, Nebraska First Trust Financial First National Bank of St. Louis May 18, 1993 Corporation, Clinton, Clinton, Kentucky Clinton, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 815 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date First Virginia Banks, Inc., United Southern Bank of Richmond June 24, 1993 Falls Church, Virginia Morristown, Morristown, Tennessee F & M National Corporation, First National Richmond June 22, 1993 Winchester, Virginia Bankshares, Inc., Emporia, Virginia FNS, Inc., Howells Investment Kansas City May 27, 1993 Schuyler, Nebraska Company, Howells, Nebraska Gulf Coast Bank Holding Gulf Coast Bank and Atlanta June 8, 1993 Company, Inc., Trust Company, New Orleans, Louisiana New Orleans, Louisiana Hollandale Capital Corporation, Bank of Hollandale, St. Louis June 16, 1993 Hollandale, Mississippi Hollandale, Mississippi Liberty Bancorp, Inc., Interstate Financial Kansas City May 25, 1993 Oklahoma City, Oklahoma Corporation, Edmond, Oklahoma MCB Financial Corporation, Marin Community Bank, San Francisco June 2, 1993 San Rafael, California N.A., San Rafael, California M & F Bancshares, Inc., Texas Bank, Dallas June 11, 1993 Weatherford, Texas Grapevine, Texas M & F Financial Corporation, Wilmington, Delaware Mountain Bancshares, Inc., Eagle Agency, Inc., Kansas City June 15, 1993 Newport, Minnesota Golden Valley, Minnesota NETEX Bancorporation, First State Bank, Dallas May 21, 1993 Pittsburg, Texas Pittsburg, Texas Oostburg Bancorp, Inc., Oostburg State Bank, Chicago June 23, 1993 Oostburg, Wisconsin Oostburg, Wisconsin Orchard Valley Financial MegaBank Financial Kansas City June 8, 1993 Corporation, Corporation, Englewood, Colorado Englewood, Colorado Peoples Financial Corporation, Peoples State Bank of Chicago May 28, 1993 Colfax, Illinois Colfax, Colfax, Illinois Pinnacle Bancorp, Inc., Centennial Kansas City May 28, 1993 Central City, Nebraska Bancorporation, Inc., Thermopolis, Wyoming Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

816 Federal Reserve Bulletin • August 1993 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Pinnacle Bancorp, Inc., Colorado National Bank Kansas City June 2, 1993 Central City, Nebraska Grand Junction, Grand Junction, Colorado Colorado National Bank Glen wood, Glenwood Springs, Colorado Quad City Holdings, Inc., Quad City Bank and Chicago May 25, 1993 Bettendorf, Iowa Trust Company, Bettendorf, Iowa Republic Bancshares, Inc., Republic Bank, Inc., Minneapolis June 11, 1993 Duluth, Minnesota Duluth, Minnesota River Forest Bancorp, Inc., Belmont National Bank, Chicago May 28, 1993 Chicago, Illinois Chicago, Illinois Southwest Bancshares, Inc., Cherry Valley St. Louis June 16, 1993 Jonesboro, Arkansas Bancshares, Inc., Wynne, Arkansas Suburban Bancorp, Inc., Huntley Bancshares, Inc., Chicago May 28, 1993 Palatine, Illinois Huntley, Illinois Twin River Financial Twin River National San Francisco May 24, 1993 Corporation, Bank, Lewiston, Idaho Lewiston, Idaho Section 4 Nonbanking Reserve Effective Applicant(s) Activity/ Company Bank Date Algemene Maatschappij voor Kredietbank Global New York May 24, 1993 Nijverheidskrediet N.V., Management, L.P., Antwerp, Belgium Brussels, Belgium Kredietbank, N.V., Darien Asset Brussels, Belgium Management, Inc., Stamford, Connecticut Britton & Koontz Capital Natchez First Federal Atlanta June 10, 1993 Corporation, Savings Bank, Natchez, Mississippi Natchez, Mississippi The Long-Term Credit Bank of Franchise Mortgage New York June 21, 1993 Japan, Ltd., Acceptance Tokyo,Japan Corporation, La Habra, California Franchise Mortgage Acceptance Corporation, L.P., La Habra, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 817 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Norwest Corporation, Citicorp Investment Minneapolis June 18, 1993 Minneapolis, Minnesota Services, Long Island City, New York Washington Investment First National Bank of Kansas City June 14, 1993 Company, Akron, Otis, Colorado Akron, Colorado First National Bank of Yuma, Yuma, Colorado Wray State Bancorporation, Wray, Colorado West Coast Bancorp, Inc., to engage de novo in Atlanta June 17, 1993 Cape Coral, Florida making, acquiring, or servicing loans or other extensions of credit Sections 3 and 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date FMSB Bancorp, Farmers and Merchants Chicago June 16, 1993 Neola, Iowa State Bank, Neola, Iowa Hall Insurance Agency, Neola, Iowa 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 Montana, Montana Bank, Minneapolis June 18, 1993 Great Falls, Montana Billings, Montana Meridian Bank, The First National Bank Philadelphia May 25, 1993 Reading, Pennsylvania of Pike County, Milford, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

818 Federal Reserve Bulletin • August 1993 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits ary 24, 1992). Petition for review of Board order against the Federal Reserve Banks in which the Board returning without action a bank holding company of Governors is not named a party. application to relocate its subsidiary bank from Washington to Idaho. On June 4, 1993, the Court of Ezell v. Federal Reserve Board, No. 93-0361 Appeals denied the petition for review. (D. D.C., filed February 19, 1993). Action seeking In re Subpoena Served on the Board of Governors, damages for personal injuries arising from motor Nos. 91-5427, 91-5428 (D.C. Cir., filed December vehicle collision. 27, 1991). Appeal of order of district court, dated Amann v. Prudential Home Mortgage Co., et al., No. December 3, 1991, requiring the Board and the 93-10320 WD (D. Massachusetts, filed February 12, Office of the Comptroller of the Currency to produce 1993). Action for fraud and breach of contract confidential examination material to a private litiarising out of a home mortgage. On April 17, 1993, gant. On June 26, 1992, the court of appeals affirmed the Board filed a motion to dismiss. the district court order in part, but held that the bank Adams v. Greenspan, No. 93-0167 (D. D.C., filed examination privilege was not waived by the agen- January 27, 1993). Action by former employee under cies' provision of examination materials to the exthe Civil Rights Act of 1964 and the Rehabilitation amined institution, and remanded for further consid- Act of 1973 concerning termination of employment. eration of the privilege issue. On August 6,1992, the Sisti v. Board of Governors, No. 93-0033 (D. D.C., district court ordered the matter held in abeyance filed January 6, 1993). Challenge to Board staff pending settlement of the underlying action. interpretation with respect to margin accounts. The Board of Governors v. Kemal Shoaib, No. CV 91-5152 Board's motion to dismiss was granted on May 13, (C.D. California, filed September 24, 1991). Action 1993. On June 3, 1993, the petitioner filed a notice of to freeze assets of individual pending administrative appeal. adjudication of civil money penalty assessment by U.S. Check v. Board of Governors, No. 92-2892 the Board. On October 15, 1991, the court issued a (D. D.C., filed December 30, 1992). Challenge to preliminary injunction restraining the transfer or partial denial of request for information under the disposition of the individual's assets. Freedom of Information Act. Board of Governors v. Ghaith R. Pharaon, No. 91- CBC, Inc. v. Board of Governors, No. 92-9572 (10th CIV-6250 (S.D. New York, filed September 17, Cir., filed December 2, 1992). Petition for review of 1991). Action to freeze assets of individual pending civil money penalty assessment against a bank hold- administrative adjudication of civil money penalty ing company and three of its officers and directors assessment by the Board. On September 17, 1991, for failure to comply with reporting requirements. the court issued an order temporarily restraining the The Board's brief was filed on March 19, 1993. transfer or disposition of the individual's assets. DLG Financial Corporation v. Board of Governors, No. 392 Civ. 2086-G (N.D. Texas, filed October 9, 1992). Action to enjoin the Board and the Federal FINAL ENFORCEMENT DECISION ISSUED BY THE Reserve Bank of Dallas from taking certain enforce- BOARD OF GOVERNORS ment actions, and seeking money damages on a variety of tort and contract theories. On October 9, On Certification of the Department of the 1992, the court denied plaintiffs' motion for a tem- Treasury—Office of the Comptroller of the porary restraining order. On March 30, 1993, the Currency court granted the Board's motion to dismiss as to it, and also dismissed certain claims against the Reserve Bank. On April 29, the plaintiffs filed an In the Matter of a Notice to Prohibit Further Particiamended complaint. The Board's motion to dismiss pation Against the amended complaint was filed on May 17. Zemel v. Board of Governors, No. 92-1056 (D. D.C., John S. Knoerzer, Former Chief Executive filed May 4, 1992). Age Discrimination in Employ- Officer and Director ment Act case. The parties' cross-motions for sum- Texas National Bank-Dallas, mary judgment are pending. Dallas, Texas (Failed) State of Idaho, Department of Finance v. Board of Governors, No. 92-70107 (9th Cir., filed Febru- OCC No. AA-EC-91-166 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 819 Final Decision of Practice and Procedure ("Uniform Rules")2 applicable to this proceeding, Knoerzer's answer was due This is an administrative proceeding pursuant to the to be filed on July 13, 1992, 20 days following the Federal Deposit Insurance Act ("FDI Act") in which June 23, 1992 service upon Knoerzer. 12 C.F.R. the Office of Comptroller of the Currency of the United 19.12(c)(1). The record contains a certificate from States of America ("OCC") seeks to prohibit the Re- OCC Docket Clerk Lisa Chase, dated August 24, 1992, spondent, John S. Knoerzer, from further participation certifying that the OCC had received no answer to the in the affairs of any financial institution as a result of his Notice. conduct as chief executive officer and director of Texas On August 28, 1992, OCC Enforcement Counsel National Bank-Dallas, Dallas, Texas (Failed) (the filed with the ALJ a motion for entry of an order of "Bank"). The proceeding comes to the Board of Gov- default pursuant to the Uniform Rules, which provide ernors of the Federal Reserve System (the "Board") in that a failure to file an answer constitutes a waiver of the form of a Recommended Decision by Administra- a respondent's right to appear and contest the allegative Law Judge ("ALJ") Walter J. Alprin recommend- tions in the notice. 12 C.F.R. 19.19(c). The motion ing that the Board issue an Order of Prohibition against indicated that Knoerzer had sent a letter to the OCC Knoerzer by default pursuant to the provisions of indicating his willingness to consent to an Order of 12 U.S.C. § 1818(e) and 12 C.F.R. 19.19(c). Prohibition and that he had not filed an answer to the Upon review of the administrative record, the Board Notice of Prohibition. Knoerzer did not file any oppoissues this Final Decision adopting the ALJ's Recom- sition to the motion for default. mended Decision and orders that the attached Order of On September 21, 1992, the ALJ granted the OCC's Prohibition issue against Knoerzer. motion for default, finding that the Notice had been duly served upon Knoerzer, that Knoerzer had never I. Statement of the Case filed an answer, and that no good cause had been shown for Knoerzer's failure to file a timely answer. A. Procedural History Accordingly, ALJ Alprin issued a Recommended Decision recommending that the Board issue an Order of On September 10, 1991, the OCC issued a Notice of Prohibition against Knoerzer pursuant to the Uniform Intention to Prohibit Further Participation (the "No- Rules provision for default upon failure to file an tice") against Knoerzer pursuant to the provisions of answer. 12 U.S.C. § 1818(e)(1), based on allegations that Kno- The Recommended Decision on Default was reerzer had engaged in misconduct during his tenure as ferred to the Board for final decision on March 10, chief executive officer and director of the Bank, which 1993. Knoerzer has filed no exceptions to the Recomhad failed on December 15, 1988. The OCC charged mended Decision. On March 31, 1993, the Secretary to that Knoerzer caused, authorized, or ratified loans by the Board notified the interested persons of record that the Bank to interrelated individuals and business enti- the case had been submitted to the Board for final ties in violation of the Bank's lending limit that re- decision. A signed certified mail receipt returned to the sulted in a loss to the Bank of over $1.6 million. The Board indicates that Knoerzer received the notifica- OCC alleged that this conduct violated laws and reg- tion on April 6, 1993. ulations applicable to national banks and constituted unsafe and unsound banking practices and breaches of B. Statutory Framework Knoerzer's fiduciary duty. The OCC also alleged that the conduct caused substantial financial loss or other The FDI Act sets forth the basis upon which a federal damage to the Bank, seriously prejudiced the interests banking agency may issue against a bank official an of the Bank's depositors, and evidenced Knoerzer's order of removal from office or prohibition from furpersonal dishonesty or a willful or continuing disre- ther participation in banking. In order to issue such an gard for the Bank's safety or soundness. The Notice order pursuant to section 1818(e)(1), the Board must required that Knoerzer file an answer to the charges make each of three findings: within 20 days of service of the Notice. After a delay resulting from difficulty in locating Knoerzer, the OCC served the Notice by hand upon Knoerzer on June 23, 1992.1 Under the Uniform Rules 2. The Uniform Rules, adopted concurrently by each of the financial institution regulatory agencies, including the Board and the OCC, constitute a materially identical set of procedural rules that control most aspects of those agencies' enforcement proceedings. Compare 1. The record contains an affidavit from a private process server 12 C.F.R. Part 19, Subpart A (OCC) with 12 C.F.R. Part 263, Subpart attesting to hand delivery of the Notice to Knoerzer on July 23, 1992. A (Board). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

820 Federal Reserve Bulletin • August 1993 (1) There must be a specified type of misconduct (12 U.S.C. § 1818(e)), the Board of Governors of — violation of law, unsound practice, or breach of the Federal Reserve System ("the Board") is of the fiduciary duty; opinion, for the reasons set forth in the accompany- (2) The misconduct must have a prescribed effect ing Final Decision, that a final Order of Removal and — financial gain to the respondent or financial Prohibition should issue against JOHN S. KNOharm or other damage to the institution; and ERZER, (3) The misconduct must involve culpability of a NOW, THEREFORE, IT IS HEREBY ORcertain degree — personal dishonesty or willful or DERED, pursuant to sections 8(b)(3), 8(e), and 80) of continuing disregard for the safety or soundness the Act, (12 U.S.C. § 1818(b)(3), 1818(e) and 18180)), of the institution. 12 U.S.C. § 1818(e)(1). In pro- that: hibition cases brought by the OCC with respect to 1. JOHN S. KNOERZER is removed from all a party affiliated with a national bank, the findings offices he holds with any insured depository instiand conclusions of the ALJ are certified to the tution or bank holding company; Board to determine whether any order shall issue. 2. In the absence of prior written approval by the 12 U.S.C. 1818(e)(4). Board, and by any other Federal financial institution regulatory agency where necessary pursuant The Uniform Rules provide that, following the issu- to section 8(e)(7)(B) of the Act (12 U.S.C. ance of a notice of intention to prohibit an institution- § 1818(e)(7)(B)), JOHN S. KNOERZER is hereby affiliated party, a Respondent's failure to file an an- prohibited: swer within the time provided constitutes a waiver of (a) From participating in the conduct of the his or her right to appear and to contest the allegations affairs of any bank holding company, any inin the notice. 12 C.F.R. 19.19(c). If no timely answer sured depository institution or any other instiis filed, Enforcement Counsel is authorized to file a tution specified in subsection 8(e)(7)(A) of the motion for entry of an order of default. Id. Upon a Act (12 U.S.C. § 1818(e)(7)(A)); finding that no good cause has been shown for the (b) From soliciting, procuring, transferring, atfailure to file a timely answer, the ALJ is directed to tempting to transfer, voting or attempting to file a recommended decision containing the findings vote any proxy, consent, or authorization with and relief sought by the agency. Id. respect to any voting rights in any institution described in subsection 8(e)(7)(A) of the Act (12 II. Discussion U.S.C. § 1818(e)(7)(A)); (c) From violating any voting agreement previ- In the circumstances of this case, it is clear that the ously approved by the appropriate Federal OCC has established the basis for a default order of banking agency; or prohibition under the terms of the Uniform Rules. The (d) From voting for a director, or from serving fact that Knoerzer was duly served with notice of the or acting as an institution-affiliated party as proceeding and of his obligation to answer is supdefined in section 3(u) of the Act, (12 U.S.C. ported by the notarized affidavit of the process server. § 1813(u)), such as an officer, director, or em- Knoerzer has had repeated opportunities to respond to ployee. the charges and there is no basis for any inference that 3. This Order, and each provision hereof, is and Knoerzer's default is the result of any mischance or shall remain fully effective and enforceable until inadvertence. The ALJ acted reasonably and in accorexpressly stayed, modified, terminated or susdance with the Uniform Rules in finding that no good pended in writing by the Board. cause existed for relieving Knoerzer from the consequences of his failure to submit an answer to the Notice. This Order shall become effective upon the expiration of thirty days after service is made. Conclusion By order of the Board of Governors, this 20th day of April, 1993. For these reasons, the Board orders that the attached Order of Prohibition issue. Board of Governors of the Federal Reserve System Order of Removal and Prohibition WHEREAS, pursuant to section 8(e) of the Federal WILLIAM W. WILES Deposit Insurance Act, as amended, (the "Act") Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 821 On Certification of the Department of the Accordingly, the Board hereby makes its Final Treasury—Office of the Comptroller of the Decision, and adopts the ALJ's Recommended Deci- Currency sion, Recommended Findings of Fact and Recommended Conclusions of Law together with the reason- In the Matter of a Notice to Prohibit Further ing and citations contained therein, except as Participation Against specifically supplemented or modified herein.2 The Board therefore orders that the attached Order of Michael A. O'Connell, Former President and Direc- Prohibition issue against Respondent prohibiting him tor, Metropolitan National Bank, N.A. from future participation in the affairs of any federally- McAllen, Texas supervised financial institution without the approval of Respondent. the appropriate supervisory agency. OCC No. AA-EC-92-22 I. Statement of the Case Final Decision A. Standards for Prohibition Order This is an administrative proceeding pursuant to section 8(e) of the Federal Deposit Insurance Act ("FDI Act"), Under the FDI Act, the ALJ is responsible for con- 12 U.S.C. § 1818(e), in which the Office of the Comp- ducting an administrative hearing on a notice of intentroller of the Currency of the United States of America tion to prohibit participation. 12 U.S.C. § 18(e)(4). ("OCC") seeks to prohibit Michael A. O'Connell from Following the hearing, the ALJ issues a recommended further participation in the affairs of any federally- decision that is referred to the Board. The parties may supervised financial institution as a result of his conduct then file with the Board exceptions to the ALJ's during his former affiliation as president and director of recommendations. The Board makes the final findings Metropolitan National Bank, N.A., McAllen, Texas of fact, conclusions of law, and determination whether (the "Bank"). As required by statute, the OCC has to issue an order of prohibition. Id. -, 12 C.F.R. 263.40. referred the action to the Board of Governors of the The FDI Act sets forth the substantive basis upon Federal Reserve System ("Board") for final decision. which a federal banking agency may issue against a bank official an order of prohibition from further The proceeding comes before the Board in the form participation in banking. In order to issue such an of a Recommended Decision by Administrative Law order pursuant to section 1818(e)(1), the Board must Judge ("ALJ") Walter J. Alprin, issued following an make each of three findings: administrative hearing held on September 29-30, 1992, in Corpus Christi, Texas, and the filing of post-hearing (1) There must be a specified type of misconduct briefs by the parties. In the Recommended Decision, — violation of law, unsafe or unsound practice, or the ALJ found that as President of the Bank, O'Con- breach of fiduciary duty; nell had, without authority, pledged a security belong- (2) The misconduct must have a prescribed effect ing to a Bank customer as collateral for a margin — financial gain to the respondent or substantial account through which O'Connell engaged in unautho- financial harm or other damage to the institution; rized active trading of United States Treasury bonds and that resulted in a $219,000 loss to the Bank. (3) The misconduct must involve culpability of a O'Connell has submitted exceptions to the Recom- certain degree — personal dishonesty or willful or mended Decision that are confined exclusively to continuing disregard for the safety or soundness objections to evidentiary rulings made by the ALJ of the institution. during the course of the hearing. O'Connell requests B. Relevant Individuals and Business Entities that the Board decline the ALJ's recommendations and order a new hearing. Based on a review of the record and the arguments raised by O'Connell, the At all times relevant to this proceeding, the Bank was Board rejects these exceptions, finding in each case a national banking association, chartered and examthat the ALJ acted reasonably within the scope of his ined by the OCC. The Bank was declared insolvent on authority over the conduct of the hearing.1 October 19, 1990. adequately explained in the written submissions, the Board denies the 1. Without stating any reasons, O'Connell has requested the oppor- request for oral argument. See 12 C.F.R. 263.40. tunity to present oral argument before the Board with respect to his 2. The Board also adopts the technical correction submitted by the exceptions. Because the legal and factual issues have been fully and OCC in the form of an exception, as discussed below. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

822 Federal Reserve Bulletin • August 1993 At all times relevant to this proceeding, Respondent O'Connell on April 30, 1990.4 On that day, the Bank O'Connell was President and a director of the Bank, wire-transferred $400,000 from Pharr's account to the and therefore an "institution-affiliated party" under clearing agent, which was used to purchase for Pharr a the terms of the FDI Act subject to the OCC's super- United States Treasury Note with a yield of 8.7 visory authority. O'Connell resigned as president and percent to maturity of $435,000 on May 15, 1991. The director of the Bank on October 9, 1990. purchase price of the Note was $398,156. The Note Ernesto Ayala was the Finance Director of the City and the excess funds of $1,844 remained in the margin of Pharr, Texas, and represented Pharr in all respects account. The ALJ found that O'Connell directed that in the events relevant to this case. Wayne and Joseph Pharr's note be used as the collateral required by the Moran were broker/dealers employed in Austin, terms of the margin account. In order to open the Texas, by Spelman & Co., Inc., a brokerage firm account, O'Connell executed a Corporate Authorizaheadquartered in San Diego, California. tion to Trade form specifying that the Bank's board of directors had conferred upon him specific authoriza- II. Findings and Conclusions tion to conduct a number of activities with respect to the account. O'Connell also executed a Customer/ Upon review of the record of this proceeding, the Margin Agreement agreeing to maintain collateral in Board hereby adopts such of the ALJ's recommended the margin trading account against which the account decision, findings, and conclusions as are not specifi- could be charged to satisfy any monthly debit/loss cally modified herein as the findings and conclusions of balance. The Agreement also provided that BCC, the the Board, and incorporates by reference the ALJ's clearing agent, would hold a lien on certain Bank reasoning and citations to the record. property for the purpose of discharging all indebtedness on the margin trading account and authorized A. Findings BCC to sell all securities or property in the margin account without prior notice, and that O'Connell On November 14, 1989, the Bank entered into a and/or the Bank was liable for the payment of any debt Depository contract with the city of Pharr, Texas, balance in the margin trading account. whereby the Bank would provide depository and funds The ALJ found that O'Connell was not authorized management services to Pharr. In April 1990, O'Con- by the Bank's board of directors or by the Pharr nell caused a meeting to be held at the Bank including Depository Contract to open the margin account and O'Connell, Ernesto Ayala (Pharr's Finance Director) to engage in such trading. The ALJ found that the and Wayne and Joseph Moran, the Spelman & Co. Depository Contract between the Bank and Pharr did stock brokers from Austin, Texas.3 O'Connell called not grant the Bank or O'Connell the authority to the meeting to discuss the extension of Pharr's bank participate in a trading program on behalf of or as account into a "margin account" with Spelman, which agent for Pharr. Furthermore, the trading in the margin would increase the capital available for trading by account exceeded the scope of the board of directors' borrowing from the broker amounts secured by authorization for O'Connell to engage in general trad- Pharr's collateral. No decision as to the margin ac- ing activities. The ALJ found that the high-risk, speccount was reached at the meeting. ulative margin account was a departure from the The ALJ found that, after the meeting, O'Connell Bank's normal practice of investing only in long-term contacted Wayne Moran, stated that the Bank was high-quality securities and that it was unsafe and interested in opening a margin trading account, repre- unsound for a bank of approximately $400,000 in sented that the Bank was Pharr's agent, and repre- primary capital to maintain a trading account. The sented that O'Connell had the authority to engage in Bank's records, including its quarterly Call Reports, actively trading in the market for United States thirty- do not indicate the existence of any trading activity on year bonds on a day trade basis. O'Connell further behalf of the Bank. represented that the Bank would guarantee Pharr a When O'Connell failed to submit documentation 9 percent return from the trading program, with the supporting his representation that he was an agent for Bank taking all profits over 9 percent and also assum- Pharr and that he was authorized by the Bank to open ing all the trading risks. The margin trading account styled "Metropolitan National Bank, Agent for Pharr", was opened by 4. Three numbered and associated accounts were opened, one of which, Number 23D-11052, served as an interest-bearing account into which profits (or losses) from margin account 23D-11075 would be transferred on a daily basis. The accounts were established with 3. The Board adopts the OCC's exception noting that, contrary to Broadcort Capital Corporation ("BCC") a wholly owned subsidiary the Recommended Decision, Bank outside director Dr. Casso was not of Merrill Lynch & Co. that provided security clearing services for present at this meeting. Spelman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 823 the account, Spelman became concerned as to whether the margin trading account. The proceeds from the Pharr was aware of O'Connell's trading activities. Spel- sale of the Note were used to offset the loss in the man's compliance officer directed that documentation margin account and the remainder of the proceeds be obtained from O'Connell to clarify the ownership of were transferred to the interest-bearing account. On the account. On June 18, 1990, Wayne Moran met with August 30, 1990, O'Connell stated that he had to O'Connell to have O'Connell re-execute the Corporate recover the entire loss in the trading accounts before Authorization to Trade form and the Customer/Margin the new owners assumed control of the Bank. The Agreement. O'Connell represented to Moran that he total losses associated with the trading accounts were had been authorized by the board of directors to about $219,109. execute the forms by the unanimous vote of the Bank's On September 21, 1990, O'Connell disclosed to the board of directors at a meeting on April 17, 1990. The Bank's board of directors that he had traded in the ALJ found that the corporate resolution passed by the bond market and had pledged Pharr's note as collat- Board of Directors on April 17, 1990, did not authorize eral. The ALJ found that prior to O'Connell's disclo- O'Connell to establish a trading account, but only sure, the board of directors had no knowledge of the authorized O'Connell to transact for funds on accounts trading activities and that O'Connell admitted his held at other banks. activities because increasing losses in the trading Pursuant to Spelman's direction, the Customer/ account had reached the point where there was no Margin agreement was modified to reflect a change in hope of recouping the losses. On September 24, 1990, name from "Metropolitan National Bank, Agent for the Bank's board of directors suspended O'Connell, the City of Pharr" to "Metropolitan National Bank notified Spelman to cease all future trading activities, and notified the OCC. The Bank compensated Pharr (2)". The ALJ found that O'Connell later admitted to for the trading loss, paying Pharr $435,000, the value the Bank's board of directors that the reason for the of the Note at maturity. change of name on the margin account was to avoid having to disclose the trading activities to Pharr. The As a result of the loss attributable to O'Connell's re-executed Customer/Margin Agreement was back- trading activities, potential buyers of the Bank chose dated to show a date of April 27, 1990. not to infuse the Bank with $1 million in capital, and From on or about May 11, 1990 until approximately the Bank was not sold. The ALJ found that the September 19, 1990 over 200 day trades involving the $219,000 in losses caused the Bank's subsequent inbuying and selling of U.S. Treasury Bonds were made solvency. in the trading accounts using the margin supported by the Pharr note. The ALJ found that O'Connell specifi- III. Conclusions cally authorized day trading on margin by giving orders to Wayne Moran, and that all trades were made with The ALJ reasonably rejected as irrelevant O'Connell's O'Connell's express authority and at his instructions. arguments that brokers Wayne and Joe Moran were Respondent agreed to the transfer of all profits or losses not credible, and that the brokers had overcharged to an associated interest-bearing account each day. O'Connell on the trades. The ALJ noted that O'Con- The ALJ found that O'Connell was notified on a nell had conceded that, with knowledge of increasing regular basis concerning the losses in the margin trading losses, he had continued to trade in the margin account account. On May 25, 1990, O'Connell had a conversa- for months without authority, even after the Pharr tion with Wayne Moran regarding losses in the margin note had been sold to satisfy losses. The ALJ also trading account of approximately $35,469. O'Connell noted that O'Connell did not testify, and did not deny wanted to continue trading. On May 31, 1990, O'Con- any of the relevant testimony. The ALJ therefore nell reasserted to Wayne Moran that he was not overly reasonably found that the OCC had supported its charges by a preponderance of the relevant credible concerned with the loss in the trading account. On June evidence. 6, 1990, Wayne Moran notified O'Connell that there was a loss in the margin trading account of $76,438. A. Misconduct O'Connell wanted to continue to trade to recoup the loss in the account, indicating that he was negotiating with potential purchasers for the Bank. On July 24, Upon these facts, The ALJ found that O'Connell's 1990, O'Connell stated that he was becoming more actions constituted both unsafe and unsound practices concerned about the loss in the account, that he thought and breaches of O'Connell's fiduciary duty. With he could still recover the loss, and that he intended to neither authority nor express permission, O'Connell keep trading until he recovered the loss. caused the Note owned by Pharr, a Bank customer, to Pursuant to O'Connell's instruction, the Note was be pledged as collateral for the margin trading account. sold for $408,694 on August 1, 1990 to cover losses in O'Connell also executed all the forms necessary to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 Federal Reserve Bulletin • August 1993 open a margin trading account and actively engaged in conclusion supported by O'Connell's knowledge that an unauthorized scheme of trading which involved Pharr did not wish to authorize active trading or more than 200 trades of 30-year United States Treasury trading on margin and that he knew of the Bank's bonds. O'Connell initiated, controlled and directed delicate condition and of the impending sale of the each trade, each of which was evidenced by both a Bank. Furthermore, the ALJ noted that O'Connell confirmation slip and monthly account statement which admitted to the board of directors that his reason for were delivered to O'Connell at the Bank. The ALJ changing the name on the account was to avoid found that O'Connell repeatedly misrepresented his disclosing his unauthorized trading to Pharr. authority to the Spelman brokers, misleading them to The ALJ found that, for the same reasons that the believe that he was authorized to act as agent for Pharr conduct evidenced personal dishonesty, it also satisfied and to trade on behalf of the Bank. O'Connell also the remaining culpability standards of willful and condirected the sale of the note to satisfy the outstanding tinuing disregard for safety or soundness in that O'Conamount of the loss in the margin trading account. The nell's conduct was willful and in that he continued to ALJ reasonably found this misconduct to satisfy the engage in the conduct over a period of several months. applicable standards for an unsafe or unsound banking practice,5 and for breach of fiduciary duty. D. O'Connell's Exceptions B. Effects The only exceptions filed by O'Connell relate entirely to the ALJ's evidentiary rulings. Since O'Connell did The ALJ also found that O'Connell's misconduct not testify, and called only one person as an adverse satisfied the Effects tier of elements necessary for a witness, he relied almost entirely upon cross-examinaprohibition in that the Bank lost over $219,000 as a tion. O'Connell objects that the ALJ was unduly reresult of the trading losses incurred by O'Connell and strictive in the scope of the questioning permitted to reimbursed to Pharr by the Bank. Furthermore, the O'Connell's counsel. He lists 11 instances where he ALJ found that the losses caused the Bank to lose a submits that the ALJ erred, and requests a new hearing. potential investment of $1 million in capital that inves- The Administrative Procedure Act ("APA") that tors had proposed to infuse into the Bank. Accord- generally governs formal agency adjudications specifies ingly, O'Connell's misconduct was a contributing fac- that presiding officials may "rule on offers of proof and tor to the insolvency of the Bank.6 receive relevant evidence", as well as "regulate the course of the hearing." 5 U.S.C. § 556(c)(3), (5). The C. Culpability APA also specifies that "the agency as a matter of policy shall provide for the exclusion of irrelevant, The ALJ also reasonably found that O'Connell's mis- immaterial or unduly repetitious evidence." 5 U.S.C. conduct satisfied the Culpability tier of elements for a § 556(d). prohibition order in that it evidenced personal dishon- This statutory authority is mirrored in the OCC's esty as well as a willful and continuing disregard for Rules of Practice and Procedure applicable to adjudithe Bank's safety and soundness. catory proceedings required to be conducted on the The ALJ found that O'Connell's conduct in con- record. The ALJ is generally vested with "all powers ducting active trading using the security of a bank necessary to conduct a proceeding in a fair and imparcustomer without obtaining the authority of either the tial manner and to avoid unnecessary delay." bank customer or the Bank, together with O'Connell's 12 C.F.R. 19.5(a). More specifically, the ALJ is vested misrepresentations of his authority to the brokers with the power "to consider and rule upon all proceconstituted personal dishonesty. The ALJ found that dural and other motions [other than granting a motion to dismiss] appropriate in an adjudicatory proceeding. 12 C.F.R. 19.5(b)(7). The evidentiary standards permit the admission of all evidence that is relevant, material, 5. An "unsafe or unsound banking practice" has been defined as a practice "deemed contrary to accepted standards of banking opera- reliable, and not unduly repetitive. 12 C.F.R. tion which might result in abnormal risk or loss to a banking institution 19.36(a)(1),(c). or shareholder." First Nat'l Bank of Eden v. Comptroller of the O'Connell first complains that his counsel was not Currency, 568 F.2d 610 (8th Cir. 1978). 6. The ALJ also found that O'Connell received a financial gain from permitted to elicit character and reputation evidence his misconduct in that he never reimbursed the Bank for the $219,000 concerning O'Connell during his cross-examination of in trading losses the Bank had restored to Pharr. The ALJ noted that there is no indication that O'Connell would have claimed any profits a Bank director. A review of the record demonstrates that might have resulted from the trading as personal income. The that the ALJ acted reasonably and within his authority Board declines to reach the question of O'Connell's financial gain in in permitting limited questioning as to O'Connell's light of the conclusion that the alternative effects element of loss to the Bank has been satisfied. reputation as to the culpability elements at issue, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 825 in restricting the scope of questioning as to general Morans was simply beside the point in light of the questions of character as irrelevant.7 ample documentary evidence establishing O'Connell's The bulk of O'Connell's exceptions relate to in- knowledge of the margin trading accounts and his own stances where the ALJ restricted the scope of cross- statement to the Bank's board of directors. Similarly, examination by O'Connell's counsel to matters elic- the ALJ reasonably restricted as immaterial questionited on direct examination. The ALJ generally ing seeking to establish O'Connell's theory that he had explained each such ruling as a relevance determina- no legal liability as a result of the Bank's decision to tion. In a number of instances, O'Connell joins these reimburse Pharr as a result of the losses for which he exceptions with objections to the ALJ's rulings forbid- was responsible. ding O'Connell's counsel from questioning witnesses The same relevance issues prevent O'Connell from as to documents that did not appear on O'Connell's list demonstrating any prejudice resulting from the ALJ's of proposed exhibits. restriction on the use of documents not identified on The OCC's Rules of Practice and Procedure do not O'Connell's pre-hearing exhibit list. Here, the ALJ directly address the scope of cross-examination. The acted in accord with the authority provided by Rule of Rules provide generally that "Hearings shall be con- Practice and Procedure 19.32(b), which specifies that ducted so as to provide a fair and expeditious presen- "No witness may testify and no exhibits may be tation of the relevant disputed issues. Each party has introduced at the hearing if such witness or exhibit is the right to present its case or defense by oral and not listed in the prehearing submissions . . . , except documentary evidence and to conduct such cross- for good cause shown." 12 C.F.R. 19.32(b). The ALJ examination as may be required for full disclosure of did not apply the rule inflexibly, finding in at least one the facts." 12 C.F.R. 19.35; see 5 U.S.C. § 556(d). instance that such good cause had been shown where Accordingly, the right to conduct cross-examination is a document would not "expand the scope" of the generally qualified by the limitation of testimony to the proceeding. Transcript 386-87. relevant disputed issues, as determined by the ALJ.8 Accordingly, O'Connell has not demonstrated that A party seeking cross-examination in an administra- he has suffered prejudice from the ALJ's evidentiary tive hearing bears the burden of showing that cross- rulings rendering the proceeding unfair, and the Board examination is in fact necessary, a decision committed denies O'Connell's exceptions and request for a new to the discretion of the presiding officer. Seacoast hearing. Anti-Pollution League v. Costle, 572 F.2d 872, 880 n.16 (1st Cir.) cert, denied, 439 U.S. 824 (1978). A Conclusion partial or complete rehearing on the basis of improperly excluded evidence will generally be provided only For the foregoing reasons, the Board orders that the where the exclusion is so prejudicial as to result in an attached Order issue. unfair hearing. See Jacob Stein, Glenn Mitchell and Basil Mezines, Administrative Law (1993) § 30.03. Order of Prohibition The Board's review of each instance where the ALJ restricted the scope of cross-examination demon- WHEREAS, pursuant to section 8(e) of the Federal strates that in each case the ALJ made reasonable Deposit Insurance Act, as amended, (the relevance determinations after permitting O'Connell's "Act")(12 U.S.C. 1818(e)), the Board of Governors of counsel to explain what he hoped to elicit from a line the Federal Reserve System ("the Board") is of the of questioning. The ALJ reasonably concluded that opinion, for the reasons set forth in the accompanying O'Connell's attempt to establish wrongdoing by the Final Decision, that a final Order of Prohibition should issue against MICHAEL A. O'CONNELL, NOW, THEREFORE, IT IS HEREBY OR- 7. O'Connell's reliance on Federal Rule of Evidence 608 in support DERED, pursuant to sections 8(e), and 8(j) of the Act, of this exception is inapposite. Rule 608 does not address reputation (12 U.S.C. §§ 1818(e) and 18180)), that: evidence going to the merits of a proceeding, but deals narrowly with the submission of opinion or reputation evidence as to the character 1. In the absence of prior written approval by the for truthfulness of a witness only when that witness's credibility is at Board, and by any other Federal financial instituissue. Here, O'Connell was not a witness in the hearing, and the tion regulatory agency where necessary pursuant evidence that O'Connell's counsel sought to elicit dealt not with his character for truthfulness as a witness, but his character as a banker. to section 8(e)(7)(B) of the Act (12 U.S.C. 8. While the Federal Rules of Evidence are not applicable to these § 1818(e)(7)(B)), MICHAEL A. O'CONNELL is proceedings, the conclusion would be the same if they did apply. Rule hereby prohibited: 611(b) specifies that "Cross-examination should be limited to the subject matter of the direct examination and matters affecting the (a) From participating in the conduct of the credibility of the witness. The Court may, in the exercise of discretion, affairs of any bank holding company, any inpermit inquiry into additional matters as if on direct examination." Federal Rule of Evidence 611(b). sured depository institution or any other insti- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

826 Federal Reserve Bulletin • August 1993 tution specified in subsection 8(e)(7)(A) of the FINAL ENFORCEMENT ORDERS ISSUED BY THE Act (12 U.S.C. § 1818(e)(7)(A)); BOARD OF GOVERNORS (b) From soliciting, procuring, transferring, attempting to transfer, voting or attempting to Country Hill Bancshares, Inc. vote any proxy, consent, or authorization with Lenexa, Kansas respect to any voting rights in any institution described in subsection 8(e)(7)(A) of the Act The Federal Reserve Board announced on June 3, (12 U.S.C. § 1818(e)(7)(A)); 1993, the issuance of a Cease and Desist Order against (c) From violating any voting agreement previ- Country Hill Bancshares, Inc., Lenexa, Kansas. ously approved by the appropriate Federal banking agency; or (d) from voting for a direc- Victor J. Vargas Irausquin tor, or from serving or acting as an institution- New York, New York affiliated party as defined in section 3(u) of the Act, (12 U.S.C. § 1813(u)), including serving as The Federal Reserve Board announced on June 18, an officer, director, or employee. 1993, the issuance of a consent Order against Victor J. 2. This Order, and each provision hereof, is and Vargas Irausquin, an institution-affiliated party of shall remain fully effective and enforceable until CapitalBanc Corporation, New York, New York. expressly stayed, modified, terminated or suspended in writing by the Board. 3. This Order shall become effective upon the expiration of thirty days after service is made. WRITTEN AGREEMENTS APPROVED BY FEDERAL RESERVE BANKS By order of the Board of Governors, this 28th day of June, 1993. Missouri State Financial Corporation St. Louis, Missouri Board of Governors of the Federal Reserve System The Federal Reserve Board announced on June 3, 1993, the execution of a Written Agreement between WILLIAM W. WILES the Federal Reserve Bank of St. Louis and Missouri Secretary of the Board State Financial Corporation, St. Louis, Missouri. 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 A22 Large reporting banks A24 Branches and agencies of foreign banks Domestic Financial Statistics FINANCIAL MARKETS MONEY STOCK AND BANK CREDIT A25 Commercial paper and bankers dollar A4 Reserves, money stock, liquid assets, and debt acceptances outstanding measures A25 Prime rate charged by banks on short-term A5 Reserves of depository institutions, Reserve Bank business loans credit A26 Interest rates—money and capital markets A6 Reserves and borrowings—Depository A27 Stock market—Selected statistics institutions A28 Selected financial institutions—Selected assets A7 Selected borrowings in immediately available and liabilities funds—Large member banks POLICY INSTRUMENTS FEDERAL FINANCE A8 Federal Reserve Bank interest rates A28 Federal fiscal and financing operations A9 Reserve requirements of depository institutions A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation A10 Federal Reserve open market transactions A30 Gross public debt of U.S. Treasury—Types and ownership FEDERAL RESERVE BANKS A31 U.S. government securities dealers—Transactions All Condition and Federal Reserve note statements A32 U.S. government securities dealers—Positions A12 Maturity distribution of loan and security and financing holdings A3 3 Federal and federally sponsored credit agencies—Debt outstanding MONETARY AND CREDIT AGGREGATES SECURITIES MARKETS AND A13 Aggregate reserves of depository institutions and monetary base CORPORATE FINANCE A14 Money stock, liquid assets, and debt measures A34 New security issues—Tax-exempt state and local A16 Deposit interest rates and amounts outstanding— governments and corporations commercial and BIF-insured banks A35 Open-end investment companies—Net sales A17 Bank debits and deposit turnover and assets A18 Loans and securities—All commercial banks A3 5 Corporate profits and their distribution A3 5 Nonfarm business expenditures on new COMMERCIAL BANKING INSTITUTIONS plant and equipment A36 Domestic finance companies—Assets and A19 Major nondeposit funds liabilities, and consumer, real estate, and business A20 Assets and liabilities, Wednesday figures credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • August 1993 Domestic Financial Statistics—Continued A57 Selected U.S. liabilities to foreign official institutions REAL ESTATE REPORTED BY BANKS A37 Mortgage markets A38 Mortgage debt outstanding IN THE UNITED STATES A57 Liabilities to and claims on foreigners CONSUMER INSTALLMENT CREDIT A58 Liabilities to foreigners A60 Banks' own claims on foreigners A39 Total outstanding A61 Banks' own and domestic customers' claims on A39 Terms foreigners A61 Banks' own claims on unaffiliated foreigners A62 Claims on foreign countries—Combined FLOW OF FUNDS domestic offices and foreign branches A40 Funds raised in U.S. credit markets A42 Summary of financial transactions REPORTED BYNONBANKING BUSINESS A43 Summary of credit market debt outstanding ENTERPRISES IN THE UNITED STATES A44 Summary of financial assets and liabilities A63 Liabilities to unaffiliated foreigners Domestic Nonfinancial Statistics A64 Claims on unaffiliated foreigners SELECTED MEASURES SECURITIES HOLDINGS AND TRANSACTIONS A45 Nonfinancial business activity—Selected A65 Foreign transactions in securities measures A66 Marketable U.S. Treasury bonds and A45 Labor force, employment, and unemployment notes—Foreign transactions A46 Output, capacity, and capacity utilization A47 Industrial production—Indexes and gross value A49 Housing and construction INTEREST AND EXCHANGE RATES A50 Consumer and producer prices A51 Gross domestic product and income A67 Discount rates of foreign central banks A52 Personal income and saving A67 Foreign short-term interest rates A68 Foreign exchange rates International Statistics A69 Guide to Statistical Releases and Special Tables SUMMARY STATISTICS A53 U.S. international transactions—Summary SPECIAL TABLES A54 U.S. foreign trade A54 U.S. reserve assets A70 Assets and liabilities of commercial banks, A54 Foreign official assets held at Federal Reserve March 31,1993 Banks A76 Terms of lending at commercial banks, May 1993 A55 Foreign branches of U.S. banks—Balance A80 Assets and liabilities of U.S. branches and agencies sheet data of foreign banks, March 31, 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GNMA Government National Mortgage Association n.a. Not available GDP Gross domestic product n.e.c. Not elsewhere classified HUD Department of Housing and Urban P Preliminary Development r Revised (Notation appears on column heading IMF International Monetary Fund when about half of the figures in that column IO Interest only are changed.) IPCs Individuals, partnerships, and corporations * Amounts insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is millions) NOW Negotiable order of withdrawal 0 Calculated to be zero OCD Other checkable deposit Cell not applicable OPEC Organization of Petroleum Exporting Countries ATS Automatic transfer service OTS Office of Thrift Supervision BIF Bank insurance fund 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 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 • August 1993 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1992 1993 1993 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Q2 Q3 Q4 Q1 Jan. Feb. Mar. Apr/ May Reserves of depository institutions2 1 Total 14.8 9.3 25.8 9.3 6.9 5.6 5.3 .7 36.5 2 Required 15.3 9.9 25.3 8.7 4.7 9.3 3.0 3.3 39.5 3 Nonborrowed 14.6 8.4 27.1 9.5 6.0 8.3 4.3 1.1 35.5 4 Monetary base 7.8 10.5 12.6 9.1 8.3 8.5 8.9 7.6 13.8 Concepts of money, liquid assets, and debt4 5 Ml 10.6 11.7 16.8 6.6 7.8 -.2 2.7 9.0 2277..66 6 M2 .3 .8 2.7 -2.0 -3.4 -4.1 -.9 .7 10.8 7 M3 -.6 .1 -.2 -3.8r -7.4 -1.7r — 1.3r 2.4 9.3 8 L 1.3 1.1 2.0 -2.1r -5.7r -1.4r -,6r 3.6 n.a. 9 Debt 5.5r 4.9 4.3r 4.4r 3.r 5.5r 5.9 n.a. Nontrqnsaction components 10 InM25 -3.4 -3.2 -2.8 -5.5 -8.1 -5.6 -2.4r -2.9 3.7 11 In M3 only6 -4.9 -3.5 -14.4 -13.2r -28.0 10.3r -3.5r 11.7 1.4 Time and savings deposits Commercial banks 12 Savings, including MMDAs 12.6 10.9 12.9 1.6 -3.2 2.5 -2.9 3.2 14.0 13 Smalltime;. -13.4 -17.4 -17.1 -7.6 -10.2 3.1 -2.9 -9.1 -10.3 14 Large time ' -13.3 -18.6 -18.4 -17.9 -26.9 -12.3 -20.9 10.0 4.7 Thrift institutions 15 Savings, including MMDAs 18.1 9.2 8.7 -.2 ..88 -10.0 -5.1 2.3 9.6 16 Smalltime^. -29.8 -18.6 -21.7 -19.2 --1166..55 -24.1 -12.6 -9.0 -5.6 17 Large time8'9 -31.9 -14.9 -11.3 -17.3 -3.6 -28.6 -18.3 11.2 -12.9 Money market mutual funds 18 General purpose and broker-dealer -6.6 -7.4 -4.2 -10.1 --99..55 --2211..22 -1.8 -5.0 1177..44 19 Institution-only 23.9 32.9 -19.4 -14.1 -27.3 25.5 -5.9 -3.0 14.4 Debt components4 20 Federal 14.4 10.7 6.0 8.6r 2.9 5.3 15.0 10.9 n.a. 21 Nonfederal 2.6r 3.QF 3.7r 2.91 3.2r 3.4r 2.2r 4.1 n.a. 1. Unless otherwise noted, rates of change are calculated from average tax-exempt, institution-only money market funds. Excludes amounts held by amounts outstanding during preceding month or quarter. depository institutions, the U.S. government, money market funds, and foreign 2. Figures incorporate adjustments for discontinuities, or "breaks," associ- banks and official institutions. Also excluded is the estimated amount of overnight ated with regulatory changes in reserve requirements. (See also table 1.20.) RPs and Eurodollars held by institution-only money market funds. Seasonally 3. Seasonally adjusted, break-adjusted monetary base consists of (1) season- adjusted M3 is computed by adjusting its non-M2 component as a whole and then ally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adding this result to seasonally adjusted M2. adjusted currency component of the money stock, plus (3) (for all quarterly L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term reporters on the "Report of Transaction Accounts, Other Deposits, and Vault Treasury securities, commercial paper, and bankers acceptances, net of money Cash" and for all weekly reporters whose vault cash exceeds their required market fund holdings of these assets. Seasonally adjusted L is computed by reserves) the seasonally adjusted, break-adjusted difference between current vault summing U.S. savings bonds, short-term Treasury securities, commercial paper, cash and the amount applied to satisfy current reserve requirements. and bankers acceptances, each seasonally adjusted separately, and then adding 4. Composition of the money stock measures and debt is as follows: this result to M3. Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the Debt: Debt of domestic nonfinancial sectors consists of outstanding creditvaults of depository institutions; (2) travelers checks of nonbank issuers; (3) market debt of the U.S. government, state and local governments, and private demand deposits at all commercial banks other than those due to depository nonfinancial sectors. Private debt consists of corporate bonds, mortgages, coninstitutions, the U.S. government, and foreign banks and official institutions, less sumer credit (including bank loans), other bank loans, commercial paper, bankers cash items in the process of collection and Federal Reserve float; and (4) other acceptances, and other debt instruments. Data are derived from the Federal checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial and automatic transfer service (ATS) accounts at depository institutions, credit sectors are monthly averages, derived by averaging adjacent month-end levels. union share draft accounts, and demand deposits at thrift institutions. Seasonally Growth rates for debt reflect adjustments for discontinuities over time in the levels adjusted Ml is computed by summing currency, travelers checks, demand of debt presented in other tables. deposits, and OCDs, each seasonally adjusted separately. 5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements (general purpose and broker-dealer), (3) savings deposits (including MMDAs), (RPs) issued by all depository institutions and overnight Eurodollars issued to and (4) small time deposits. U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (includ- 6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. ing MMDAs) and small time deposits (time deposits—including retail repurchase residents, and (4) money market ftind balances (institution-only), less (5) a agreements (RPs)—in amounts of less than $100,000), and (3) balances in both consolidation adjustment that represents the estimated amount of overnight RPs taxable and tax-exempt general-purpose and broker-dealer money market funds. and Eurodollars held by institution-only money market funds. This sum is Excludes individual retirement accounts (IRAs) and Keogh balances at depository seasonally adjusted as a whole. institutions and money market funds. Also excludes all balances held by U.S. 7. Small time deposits—including retail RPs—are those issued in amounts of commercial banks, money market funds (general purpose and broker-dealer), less than $100,000. All IRA and Keogh account balances at commercial banks and foreign governments and commercial banks, and the U.S. government. Season- thrift institutions are subtracted from small time deposits. ally adjusted M2 is computed by adjusting its non-Mi component as a whole and 8. Large time deposits are those issued in amounts of $100,000 or more, then adding this result to seasonally adjusted Ml. excluding those booked at international banking facilities. M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of 9. Large time deposits at commercial banks less those held by money market $100,000 or more) issued by all depository institutions, (2) term Eurodollars held funds, depository institutions, U.S. government and foreign banks and official by U.S. residents at foreign branches of U.S. banks worldwide and at all banking institutions. offices in the United Kingdom and Canada, and (3) balances in both taxable and 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 Factor 1993 1993 Mar. Apr. May Apr. 14 Apr. 21 Apr. 28 May 5 May 12 May 19 May 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 337,743 344,222r 346,082 344,936 347,045r 344,073r 344,142 344,996 344,923 348,867 U.S. government securities 2 Bought outright—System account 298,823 303,316 305,421 300,124 305,346 305,711 305,429 305,098 305,724 305,947 3 Held under repurchase agreements ... 1,984 3,293 2,598 6,742 3,920 625 0 1,094 904 5,686 Federal agency obligations 4 Bought outright 5,173 5,106 5,086 5,111 5,095 5,095 5,095 5,095 5,095 5,084 5 Held undeT repurchase agreements ... 112 25 117 73 0 0 0 14 114 390 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 69 29 43 6 38 65 15 128 8 20 8 Seasonal credit 26 40 83 32 41 52 67 74 87 93 1 9 0 Flo E a x t tended credit 1,15 0 3 61 0 8 r 43 0 6 1,32 0 2 23 0 r 422 1 r 916 1 41 0 2 67 0 1 16 0 1 11 Other Federal Reserve assets 30,404 31,794r 32,298 31,525 32,373 32,102 32,618 33,081 32,319 31,485 12 Gold stock 11,055 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,054 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 21,556 21,605r 21,657 21,598r 21,608r 21,619"" 21,629 21,643 21,657 21,671 ABSORBING RESERVE FUNDS 15 Currency in circulation 331,646 335,293r 338,480 335,968r 336,086r 335,1401 336,294 338,035 338,604 338,602 16 Treasury cash holdings 509 514 497 515 517 512 505 505 498 488 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,472 6,062 5,851 5,348 8,135 4,770 6,116 5,646 5,937 6,110 18 Foreign 290 241 272 230 246 227 273 379 268 1% 19 Service-related balances and adjustments 6,498 6,391 6,193 6,532 6,213 6,473 6,048 5,986 6,296 6,324 20 Other 347 317 310 311 322 316 304 307 322 312 21 Other Federal Reserve liabilities and capital 9,091 9,148 9,509 9,161 9,172 9,195 9,779 9,920 9,243 9,267 22 Rese R rv e e s e b r a v l e a n B c a e n s k w s ith Federal 24,520 26,933r 25,700 27,540 27,036r 28,131r 25,523 24,932 24,485 28,311 End-of-month figures Wednesday figures Mar. Apr. May Apr. 14 Apr. 21 Apr. 28 May 5 May 12 May 19 May 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 343,481 343,696r 346,963 348,681 347,301r 342,924r 345,343 352,418 342,687 356,734 U.S. government securities Bought outright—System account . 298,461 305,381 304,494 302,476 305,525 305,477 305,399 305,580 305,540 306,148 Held under repurchase agreements 6,756 0 5,347 8,526 3,920 0 0 7,660 35 11,930 Federal agency obligations Bought outright 5,123 5,095 5,054 5,095 5,095 5,095 5,095 5,095 5,095 5,054 Held under repurchase agreements 567 0 0 57 0 0 0 95 10 1,120 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions Adjustment credit 720 20 37 7 9 29 5 13 5 19 Flo S E a e x t a te so n n d a e l d c c r r e e d d it i t 33 3 7 0 2 6 6 19 3 2 f 9 5 2 0 8 7 3 8 7 0 1 1 4 9 3 0 0 r 5 79 9 2 r 1,8 7 7 0 0 1 45 8 2 1 0 8 9 9 4 5 0 3 9 5 3 0 1 Other Federal Reserve assets 31,484 32,517 31,881 31,702 32,519 32,183 32,903 33,442 31,012 32,019 12 Gold stock 11,054 11,054 11,053 11,054 11,054 11,054 11,054 11,054 11,054 11,054 1 1 3 4 T Sp re e a c s ia u l r y d r c a u w r i r n e g n c r y ig h o t u s ts c t e a r n t d if i i n c g a te account 21 8, , 0 5 1 7 8 8 2 8 1 , , 0 6 1 2 8 9 r 21 8 , , 6 0 8 1 5 8 2 8 1 , , 0 5 1 9 8 8 r 21 8, , 0 6 1 0 8 8 r 2 8 1 ,0 ,6 1 ^ 8 2 8 1 , , 0 62 1 9 8 21 8, , 0 6 1 4 8 3 21 8 , , 6 0 5 1 7 8 21 8 , , 6 0 7 1 1 8 ABSORBING RESERVE FUNDS 15 Currency in circulation 332,822 335,907r 340,867 336,536r 335,612r 335,557r 337,159 338,645 338,568 339,528 16 Treasury cash holdings 515 505 489 517 513 505 506 499 489 483 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,752 7,273 5,787 4,793 13,052 5,291 5,318 4,952 6,080 5,369 18 Foreign 318 221 194 589 198 229 355 210 263 246 19 Service-related balances and adjustments 6,899 6,048r 6,299 6,532 6,213 6,473 6,048 5,986 6,2% 6,324 20 Other 314 291 300 352 311 324 304 313 323 311 21 Other Federal Reserve liabilities and capital 8,844 9,847 9,263 9,099 9,052 9,032 9,749 9,128 9,094 9,139 22 Reserve balances with Federal Reserve Banks 27,668 24,305r 24,521 30,932 23,031r 26,204r 26,605 33,399 22,302 36,077 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 • August 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. Nov. Dec. Jan. Feb. Mar. Apr. May 1 Reserve balances with Reserve Banks2 30,237 26,659 25,368 25,462 25,368 23,636 23,515 24,383 26,975r 25,968 2 Total vault cash 31,789 32,510 34,535 32,457 34,535 35,991 33,914 33,293 32,721 33,462 3 Applied vault cash , 28,884 28,872 31,172 29,205 31,172 32,368 30,368 29,912 29,567 30,133 4 Surplus vauk cash 2,905 3,638 3,364 3,252 3,364 3,623 3,546 3,381 3,154 3,329 5 Total reserves 59,120 55,532 56,540 54,666 56,540 56,004 53,882 54,2% 56,541r 56,100 6 7 R Ex eq ce u s ir s e d re s re e s rv e e rv b es a lances at Reserve Bank i s '. . . . . . 57 1 , , 4 66 5 4 6 54,5 9 5 7 3 9 55 1 , , 3 1 8 5 5 5 53 1 , , 6 0 2 4 4 3 55 1 , , 3 1 8 5 5 5 54 1 , , 7 2 4 6 4 0 52 1 , , 7 1 7 0 8 4 53 1 , , 0 2 8 1 3 3 55 l, , 0 4 9 4 6 5 r 55,1 9 0 9 4 7 8 Total borrowings at Reserve Banks8 326 192 124 104 124 165 45 91 73 121 9 Seasonal borrowings 76 38 18 40 18 11 18 26 41 84 10 Extended credit9 23 1 1 0 1 1 0 0 0 0 Biweekly averages of daily figures for weeks ending 1993 Feb. 3 Feb. 17 Mar. 3 Mar. 17 Mar. 31 Apr. 14 Apr. 28r May 12r May 26 June 9 1 Reserve balances with Reserve Banks 21,500 23,301 24,335 24,029 24,747 26,612 27,586 25,228 26,396 26,540 2 Total vault cash3... 36,368 34,764 32,163 34,487 32,343 33,218 32,010 34,225 32,728 33,685 3 Applied vault cash* 32,470 31,069 28,902 30,944 29,098 29,995 28,960 30,816 29,455 30,391 4 Surplus vauk cash5 3,898 3,695 3,261 3,543 3,245 3,223 3,050 3,409 3,273 3,293 5 Total reserves6 53,970 54,370 53,237 54,973 53,845 56,607 56,546 56,044 55,851 56,931 6 Required reserves i 52,740 52,875 52,666 53,683 52,572 55,763 55,160 55,217 54,649 56,105 7 Excess reserve balances at Reserve Banks 1,230 1,495 571 1,290 1,273 844 1,387 828 1,202 826 8 Total borrowings at Reserve Banks8 64 33 56 93 98 38 99 142 105 118 9 Seasonal borrowings 11 18 20 22 32 31 47 71 90 101 10 Extended credit9 3 0 0 0 0 0 1 1 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical institutions (that is, those whose vault cash exceeds their required reserves) to release. For ordering address, see inside front cover. satisfy current reserve requirements. 2. Excludes required clearing balances and adjustments to compensate for float 5. Total vault cash Oine 2) less applied vault cash (line 3). and includes other off-balance-sheet "as-of' adjustments. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 3. Total "lagged" vault cash held by depository institutions subject to reserve (line 3). requirements. Dates refer to the maintenance periods during which the vault cash 7. Total reserves (line 5) less required reserves (line 6). can be used to satisfy reserve requirements. The maintenance period for weekly 8. Also includes adjustment credit. reporters ends sixteen days after the lagged computation period during which the 9. Consists of borrowing at the discount window under the terms and condivault cash is held. Before Nov. 25,1992, the maintenance period ended thirty days tions established for the extended credit program to help depository institutions after the lagged computation period. deal with sustained liquidity pressures. Because there is not the same need to 4. All vault cash held during the lagged computation period by "bound" repay such borrowing promptly as there is with traditional short-term adjustment institutions (that is, those whose required reserves exceed their vault cash) plus credit, the money market impact of extended credit is similar to that of the amount of vault cash applied during the maintenance period by "nonbound" nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1993, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Apr. 5 Apr. 12 Apr. 19 Apr. 26 May 3 May 10 May 17 May 24 May 31 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 73,835 76,974 72,059 66,142 68,032 68,197 69,117 65,952 70,624 2 For all other maturities 11,799 14,364 12,264r 12,985r 13,709 13,490 13,227 12,864 12,825 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 19,121 17,641 18,236 19,437 16,829 15,975 18,618 21,775 18,376 4 For all other maturities 18,665 18,429 19,311 19,603 19,943 19,771 21,278 20,739 20,968 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 14,302 13,274 14,332 13,356 12,017 12,028 12,650 13,386 13,028 6 For all other maturities 26,122 27,6% 27,039 26,549 26,812 26,127 26,634 27,626 27,872 All other customers 7 For one day or under continuing contract 23,168 22,301 23,085 23,077 24,272 22,777 23,066 23,164 24,170 8 For all other maturities 14,470 15,269 13,573 14,061 14,152 13,650 13,877 13,886 14,364 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 43,155 38,319 37,897 37,289 42,605 41,271 40,746 39,174 43,503 10 To all other specified customers2 21,654 21,849 23,093 21,827 22,042 22,351 23,830 20,707 20,010 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 • August 1993 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 Federal Reserve Bank On On On 6/30/93 Effective date Previous rate 6/30/93 Effective date Previous rate 6/30/93 Effective date Previous rate Boston 7/2/92 3.5 6/24/93 6/24/93 New York ... 7/2/92 6/24/93 6/24/93 Philadelphia.. 7/2/92 6/24/93 6/24/93 Cleveland 7/6/92 6/24/93 6/24/93 Richmond 7/2/92 6/24/93 6/24/93 Atlanta 7/2/92 6/24/93 6/24/93 Chicago 7/2/92 6/24/93 6/24/93 St. Louis 7/7/92 6/24/93 6/24/93 Minneapolis.. 7/2/92 6/24/93 6/24/93 Kansas City.. 7/2/92 6/24/93 6/24/93 Dallas 7/2/92 6/24/93 6/24/93 San Francisco 7/2/92 3.5 3.10 6/24/93 3.10 3.60 6/24/93 3.60 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o an f k Effective A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 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. 7 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 7n0 11.5-12 11.5 1988—Aug. 9 6-6.5 6.5 10 7.25 7.25 11.5 11.5 11 Aug. 21 7.75 7.75 Aug. ? 11-11.5 11 Sept. 22 8 8 H 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. 1? 9.5-10 9.5 n 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-——AApprr.. 8.5-9 9 7 4.5 4.5 n 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-——MMaayy 70 7.5-8 7.5 16 11 11 74 7.5 7.5 29 10 10 IInn eeffffeecctt JJuunnee 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 accounts 1 $0 million-$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 Gam-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 lVi years was reduced from 3 on an annual basis as of June 30. No corresponding adjustment is to be made in percent to lVi 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. Tne exemption applies in the following order: (1) net requirement on nonpersonal time deposits with an original maturity of 1VS 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 1VS years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • August 1993 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1992 1993 TTyyppee ooff ttrraannssaaccttiioonn 11999900 11999911 11999922 Oct. Nov. Dec. Jan. Feb. Mar. Apr. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 24,739 20,158 14,714 4,072 1,064 3,669 0 0 0 121 2 Gross sales 7,291 120 1,628 0 0 0 0 0 0 0 3 Exchanges 241,086 277,314 308,699 28,907 25,468 29,562 24,542 19,832 23,796 30,124 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 1,096 0 461 0 0 0 279 244 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 25,638 24,454 36,662 2,010 7,160 2,777 561 2,892 4,303 1,950 8 Exchanges -27,424 -28,090 -30,543 -982 -4,615 -1,570 -1,202 -6,044 -2,602 -1,100 9 Redemptions 0 1,000 0 0 0 0 0 0 0 0 One to five years 10 Gross purchases 250 6,583 13,118 200 4,172 200 0 0 1,441 2,490 11 Gross sales 200 0 0 0 0 0 0 0 0 0 12 Maturity shifts -21,770 -21,211 -34,478 -1,762 -6,800 -2,777 -64 -2,617 -4,303 -1,630 13 Exchanges 25,410 24,594 25,811 884 3,415 1,570 882 4,564 2,602 800 Five to ten years 14 Gross purchases 0 1,280 2,818 0 1,176 100 0 0 716 1,147 15 Gross sales 100 0 0 0 0 0 0 0 0 0 16 Maturity shifts -2,186 -2,037 -1,915 -248 -187 0 -497 -98 0 -320 17 Exchanges 789 2,894 3,532 97 800 0 0 1,000 0 300 More than ten years 18 Gross purchases 0 375 2,333 0 947 0 0 0 705 1,110 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,681 -1,209 -269 0 -173 0 0 -177 0 0 21 Exchanges 1,226 600 1,200 0 400 0 0 480 0 0 All maturities 22 Gross purchases 25,414 31,439 34,079 4,272 7,820 3,969 0 0 3,141 5,111 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 25 Gross sales 1,369,052 1,570,456 1,482,467 116,024 115,020 144,232 114,543 111,491 146,563 127,115 26 Gross purchases 1,363,434 1,571,534 1,480,140 114,917 117,020 142,578 116,510 113,349 143,049 128,924 Repurchase agreements2 27 Gross purchases 219,632 331100,,008844 337788,,337744 18,698 4422,,337733 48,904 34,768 28,544 37,815 3300,,119977 28 Gross sales 202,551 311,752 386,257 35,383 39,117 44,697 42,231 25,889 33,714 36,953 29 Net change in U.S. government securities 24,886 29,729 20,642 -13,520 13,075 6,521 -5,497 4,513 3,728 163 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 00 00 0 00 00 0 0 0 00 31 Gross sales 0 5 0 0 0 0 0 0 0 0 32 Redemptions 183 292 632 0 0 121 103 85 101 28 Repurchase agreements1 33 Gross purchases 41,836 2222,,880077 1144,,556655 11,,777788 22,,776600 1,601 2,237 1,107 1,811 119977 34 Gross sales 40,461 23,595 14,486 3,253 2,506 1,224 2,868 832 1,519 764 35 Net change in federal agency obligations 1,192 -1,085 -554 -1,475 254 256 -734 190 191 -595 36 Total net change in System Open Market Account 26,078 2288,,664444 2200,,008899 --1144,,999955 13,329 6,777 -6,231 4,703 3,918 -431 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 Apr. 28 May 5 May 12 May 19 May 26 Mar. 31 Apr. 30 May 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,053 2 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 3 485 489 482 472 452 503 487 441 Loans 4 To depository institutions 89 75 94 99 112 753 84 129 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 5,095 5,095 5,095 5,095 5,054 5,123 5,095 55,,005544 8 Held under repurchase agreements 0 0 95 10 1,120 567 0 0 9 Total U.S. Treasury securities 305,477 305,399 313,240 305,575 318,078 305,217 305,381 309,841 10 Bought outright2 305,477 305,399 305,580 305,540 306,148 298,461 305,381 304,494 11 Bills 144,130 144,052 144,233 144,194 144,802 142,104 144,034 143,148 17 Notes 123,936 123,936 123,936 123,870 123,870 120,211 123,936 123,870 13 Bonds 37,411 37,411 37,411 37,477 37,477 36,146 37,411 37,477 14 Held under repurchase agreements 0 0 7,660 35 11,930 6,756 0 5,347 15 Total loans and securities 310,661 310,570 318,524 310,780 324,364 311,660 310,560 315,025 16 Items in process of collection 5,298 8,075 5,574 5,424 4,938 5,338 5,359 4,473 17 Bank premises 1,035 1,035 1,036 1,038 1,038 1,031 1,034 1,039 Other assets 18 Denominated in foreign currencies3 22,411 23,115 23,134 23,171 23,197 22,328 23,043 23,143 19 All other 8,718 8,751 9,308 6,878 7,861 8,092 8,550 7,820 20 Total assets 367,681 371,106 377,131 366,835 380,922 368,024 368,106 371,013 LIABILITIES 21 Federal Reserve notes 314,928 316,524 317,983 317,872 318,791 312,263 315,270 320,112 22 Total deposits 38,760 38,848 44,915 34,949 48,269 41,917 38,365 37,279 73 Depository institutions 32,919 32,871 39,440 28,283 42,343 34,533 30,579 31,000 24 U.S. Treasury—General account 5,291 5,318 4,952 6,080 5,369 6,752 7,273 5,787 25 Foreign—OfBcial accounts 229 355 210 263 246 318 221 194 26 Other 324 304 313 323 311 314 291 300 n Deferred credit items ^ 4,961 5,985 5,105 4,919 4,722 5,001 4,624 4,358 28 Other liabilities and accrued dividends 2,189 2,156 2,269 2,205 2,239 2,251 2,220 2,217 29 Total liabilities 360,838 363,514 370,271 359,945 374,022 361,430 360,479 363,966 CAPITAL ACCOUNTS 30 Capital paid in 3,259 3,260 3,273 3,284 3,300 3,187 3,260 3,300 31 Surplus 3,054 3,054 3,054 3,054 3,054 3,054 3,054 3,054 32 Other capital accounts 529 1,278 533 552 546 353 1,313 693 33 Total liabilities and capital accounts 367,681 371,106 377,131 366,835 380,922 368,024 368,106 371,013 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 304,784 309,814 310,221 312,958 312,869 304,825 310,903 313,505 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 378,128 379,044 380,288 381,079 381,807 373,886 378,585 382,009 36 LESS: Held by Federal Reserve Bank 63,200 62,519 62,305 63,207 63,016 61,624 63,315 61,897 37 Federal Reserve notes, net 314,928 316,524 317,983 317,872 318,791 312,263 315,270 320,112 Collateral held against notes, net: 38 Gold certificate account 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,053 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 295,856 297,452 298,911 298,800 299,720 293,190 2%, 198 301,040 42 Total collateral 314,928 316,524 317,983 317,872 318,791 312,263 315,270 320,112 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly 3. Valued monthly at market exchange rates. statistical release. For ordering address, see inside front cover. 4. Includes special investment account at the Federal Reserve Bank of Chicago 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities in Treasury bills maturing within ninety days. pledged with Federal Reserve Banks—and excludes securities sold and scheduled 5. Includes exchange-translation account reflecting the monthly revaluation at to be bought back under matched sale-purchase transactions. market exchange rates of foreign exchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 DomesticN onfinancialS tatistics • August 1993 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month TTTyyypppeee ooofff hhhooollldddiiinnnggg aaannnddd mmmaaatttuuurrriiitttyyy 1993 1993 Apr. 28 May 5 May 12 May 19 May 26 Mar. 31 Apr. 30 May 31 1 Total loans 89 75 94 99 112 753 84 129 2 Within fifteen days' 84 21 33 97 105 741 54 8822 3 Sixteen days to ninety days 5 54 61 2 7 12 30 4477 4 Ninety-one days to one year 0 0 0 0 0 0 0 0 5 Total acceptances 0 0 0 0 0 0 0 0 6 Within fifteen days' 0 0 0 0 0 0 0 0 7 Sixteen days to ninety days 0 0 0 0 0 0 0 0 8 Ninety-one days to one year 0 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 305,477 305,399 313,240 305,575 308,488 305,217 305,381 304,494 10 Within fifteen days' 15,052 16,967 21,181 15,707 18,246 17,889 11,295 8,196 11 Sixteen days to ninety days 68,275 69,582 69,509 69,198 69,481 67,037 74,524 79,097 1? Ninety-one days to one year 97,132 94,542 98,242 97,900 97,991 99,880 95,254 94,431 n One year to five years 73,624 72,915 72,915 71,065 71,065 71,255 72,915 71,065 14 Five years to ten years 21,471 21,471 21,471 21,606 21,606 20,344 21,471 21,606 15 More than ten years 29,922 29,922 29,922 30,099 30,099 28,813 29,922 30,099 16 Total federal agency obligations 5,095 5,095 5,190 5,105 5,504 5,690 5,095 5,054 17 Within fifteen days' 115 0 136 327 751 855 115 301 18 Sixteen days to ninety days 643 744 703 427 402 507 643 527 19 Ninety-one days to one year 1,177 1,191 1,216 1,216 1,261 1,057 1,177 1,136 20 One year to five years 2,307 2,307 2,282 2,282 2,237 2,419 2,307 2,237 21 Five years to ten years 711 711 711 711 711 711 711 711 22 More than ten years 142 142 142 142 142 142 142 142 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 1992 1993 IItteemm DD 1199 ee 88 cc 99 .. DD 1199 ee 99 cc 00 .. DD 1199 ee 99 cc 11 .. DD 1199 ee 99 cc 22 .. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 40.49 41.77 45.53 54.35 52.84 53.82 54.35 54.67 54.92 55.17 55.20 56.88 22 NNoonnbboorrrroowweedd rreesseerrvveess44 40.23 41.44 45.34 54.23 52.69 53.71 54.23 54.50 54.88 55.07 55.12r 56.76 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 40.25 41.46 45.34 54.23 52.69 53.71 54.23 54.50 54.88 55.07 55.12r 56.76 44 RReeqquuiirreedd rreesseerrvveess 39.57 40.10 44.56 53.20 51.76 52.77 53.20 53.41 53.82 53.95 54.10 55.88 55 MMoonneettaarryy bbaassee66 267.73 293.19 317.17 350.80 344.85 347.83 350.80 353.22 355.73 358.37 360.64r 364.78 Not seasonally adjusted 6 Total reserves7 41.77 43.07 46.98 56.06 52.62 54.08 56.06 55.97 53.81 54.18 56.37 55.88 7 Nonborrowed reserves 41.51 42.74 46.78 55.93 52.47 53.97 55.93 55.80 53.77 54.09 56.29r 55.75 8 Nonborrowed reserves plus extended credit . 41.53 42.77 46.78 55.93 52.47 53.97 55.93 55.80 53.77 54.09 56.29* 55.75 9 Required reserves8 40.85 41.40 46.00 54.90 51.54 53.04 54.90 54.71 52.71 52.96 55.27 54.88 10 Monetary base 271.18 296.68 321.07 354.55 343.63 347.89 354.55 354.41 353.18 356.00 361.64r 364.09 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS' 11 Total reserves11 62.81 59.12 55.53 56.54 53.14 54.67 56.54 56.00 53.88 54.30 56.54r 56.10 12 Nonborrowed reserves „ 62.54 58.80 55.34 56.42 52.99 54.56 56.42 55.84 53.84 54.20 56.47 55.98 13 Nonborrowed reserves plus extended credit . 62.56 58.82 55.34 56.42 52.99 54.56 56.42 55.84 53.84 54.20 56.47 55.98 14 Required reserves 61.89 57.46 54.55 55.39 52.06 53.62 55.39 54.74 52.78 53.08 55.45 55.10 15 Monetary base 292.55 313.70 333.61 360.90 349.81 354.25 360.90 360.88 359.56 362.59 368.18r 370.47 16 Excess reserves .92 1.66 .98 1.16 1.07 1.04 1.16 1.26 1.10 1.21 1.10 1.00 17 Borrowings from the Federal Reserve .27 .33 .19 .12 .14 .10 .12 .17 .05 .09 .07 .12 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 • August 1993 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1993 1989 1990 1991 1992 Dec. Dec. Dec. Dec. Feb. Mar. Apr. May Seasonally adjusted Measures2 1 Ml 794.6 827.2 899.3 1,026.6 1,033.1 1,035.4 l,043.2r 1,067.2 2 M2 3,233.3 3,345.5 3,445.8 3,497.0 3,475.2 3,472.7r 3,474.7r 3,506.0 3 M3 4,056.1 4,116.7 4,168.1 4,166.5 4,134.9r 4,130.4r 4,138.7r 4,170.9 4 L 4,886.1 4,965.2 4,982.2 5,052.1 5,022.4r 5,019.7r 5,034.6 4,966.6 5 Debt 10,076.7 10,751.3 11,219.3'' ll,779.7r ll,848.6r ll,903.2r 11,961.6 10,755.3 Ml components 6 Currency3 222.7 246.7 267.2 292.3 296.8 299.0 301.4 304.0 7 Travelers checks 6.9 7.8 7.8 8.1 8.0 8.0 8.1 8.2 8 Demand deposits 279.8 278.2 290.5 340.9 341.9 342.0 347.3 359.2 9 Other checkable deposits6 285.3 294.5 333.8 385.2 386.4 386.4 386.4r 395.8 Nontransaction components 10 In M21 2,438.7 2,518.3 2,546.6 2,470.3 2,442.1 2,437.3r 2,431.4r 2,438.9 11 In M3 822.8 771.2 722.3 669.6 659.6r 657.7r 664. r 664.9 Commercial banks 12 Savings deposits, iircluding MMDAs 541.4 582.2 666.2 756.1 755.7 753.9 755.9r 764.7 13 Small time deposits 534.9 610.3 601.5 507.0 504.0 502.8 499.0 494.7 14 Large time deposits ' 387.7 368.7 341.3 290.2 280.8 275.9 278.2r 279.3 Thrift institutions 15 Savings deposits, irrcluding MMDAs 349.6 338.6 376.3 429.9 426.6 424.8 425.6 429.0 16 Small time deposits9. 617.8 562.0 463.2 363.2 351.0 347.3 344.7r 343.1 17 Large time deposits10 161.1 120.9 83.4 67.3 65.5 64.5 65.lr 64.4 Money market mutual funds 18 General purpose and broker-dealer 317.4 350.5 363.9 342.3 333.6 333.1 331.7 336.5 19 Institution-only 108.8 135.9 182.1 202.3 201.9 200.9 200.4 202.8 Debt components 20 Federal debt 2,249.5 2,493.4 2,764.8 33,,006699..00rr 3,090.0 3,128.5 3,156.8 n.a. 21 Nonfederal debt 7,837.0 8,261.9 8,454.5r 8,710.7r 8,758.5r 8,774.7r 8,804.9 n.a. Not seasonally adjusted Measures2 22 Ml 811.5 843.7 916.4 1,045.8 1,022.3 1,030.8 l,058.4r 1,058.0 23 M2 3,245.1 3,357.0 3,457.9 3,511.2 3,469.2 3,479.5r 3,498. lr 3,490.5 24 M3 4,066.4 4,126.3 4,178.1 4,178.6 4,132.3r 4,140.4r 4,157.8r 4,157.4 25 L 4,906.0 4,988.0 5,004.2 5,077.0 5,022.7r 5,033.3r 5,052.4 n.a. 26 Debt 10,073.4 10,743.9 11,209.4r 11,771.3' ll,815.2r ll,863.5r 11,919.8 n.a. Ml components 27 Currency3 225.3 249.5 269.9 295.0 295.3 297.9 301.3 304.4 28 Travelers checks 6.5 7.4 7.4 7.8 7.7 7.8 7.8 7.9 29 Demand deposits 291.5 289.9 302.9 355.3 334.3 336.4r 350.7 352.1 30 Other checkable deposits6 288.1 296.9 336.3 387.7 384.9 388.9 398.7r 393.5 Nontransaction components 31 In M2; 2,433.6 2,513.2 2,541.5 2,465.4 2,447.0 2,448.7r 2,439.7r 2,432.5 32 In M38 821.4 769.3 720.1 667.4 663.0' 660.9r 659.7r 667.0 Commercial banks 33 Savings deposits, iircluding MMDAs 543.0 580.1 663.3 752.3 753.1 757.5 760.7r 765.8 34 Small time deposits 533.8 610.5 602.0 507.8 504.6 502.1 497.8 492.4 35 Large time deposits10, 386.9 367.7 340.1 289.1 280.3 276.8r 277.4r 280.9 Thrift institutions 36 Savings deposits, iiuluding MMDAs 347.4 337.3 374.7 427.8 425.1 426.8 428.3 429.6 37 Small time deposits9. 616.2 562.1 463.6 363.8 351.4 346.8 343.8 341.5 38 Large time deposits 162.0 120.6 83.1 67.1 65.4 64.7 65.0 64.7 Money market mutual funds 39 General purpose and broker-dealer 315.7 348.4 361.5 340.0 339.8 342.2 337.9 334.8 40 Institution-only 109.1 136.2 182.4 202.4 210.3 203.6 199.5 203.0 Repurchase agreements and eurodollars 41 Overnight 77.5 74.7 76.3 73.9 72.9 73.2r 71.lr 68.3 42 178.4 158.3 130.1 126.3 128.91 135.8r 138.lr 139.0 Debt components 43 Federal debt 2,247.5 2,491.3 2,765.0 3,069.8 3,087.3 3,121.4 3,142.9 n.a. 44 Nonfederal debt 7,826.0 8,252.5 8,444.4r 8,701,5r 8,727.9r 8,742. lr 8,776.9 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 U.S. Treasury, Federal Reserve Banks, and the market debt of the U.S. government, state and local governments, and private vaults of depository institutions; (2) travelers checks of nonbank issuers; (3) nonfinancial sectors. Private debt consists of corporate bonds, mortgages, condemand deposits at all commercial banks other than those due to depository sumer credit (including bank loans), other bank loans, commercial paper, bankers institutions, the U.S. government, and foreign banks and official institutions, less acceptances, and other debt instruments. Data are derived from the Federal cash items in the process of collection and Federal Reserve float; and (4), other Reserve Board's flow of funds accounts. Debt data are based on monthly checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) averages. This sum is seasonally adjusted as a whole. and automatic transfer service (ATS) accounts at depository institutions, credit 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of union 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) savings deposits (including computed by adjusting its non-Mi component as a whole and then adding this MMDAs), and (4) 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 all 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, U.S. government, and foreign banks and official L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term institutions. Treasury securities, commercial paper, and bankers acceptances, net of money Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 DomesticN onfinancialS tatistics • August 1993 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1992 1993 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.r May Interest rates (annual effective yields) INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts ... 4.89 3.76 2.45 2.39 2.36 2.33 2.32 2.27 2.21 2.16 2.13 2 Savings deposits 5.84 4.30 3.00 2.94 2.90 2.88 2.85 2.80 2.73 2.68 2.65 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 6.94 4.18 2.95 2.89 2.91 2.90 2.86 2.81 2.75 2.72 2.70 4 92 to 182 days 7.19 4.41 3.16 3.11 3.14 3.16 3.13 3.08 3.03 2.99 2.98 5 183 days to 1 year 7.33 4.59 3.37 3.30 3.34 3.37 3.34 3.29 3.22 3.19 3.18 6 More than 1 year to 2Vi years 7.42 4.95 3.86 3.78 3.83 3.88 3.88 3.83 3.74 3.66 3.64 7 More than 2Yi years 7.53 5.52 4.62 4.60 4.70 4.77 4.72 4.59 4.52 4.47 4.45 BIF-INSURED SAVINGS BANKS3 8 Negotiable order of withdrawal accounts ... 5.38 4.44 2.71 2.57 2.52 2.45 2.41 2.37 2.32 2.25 2.21 9 Savings deposits 6.01 4.97 3.39 3.29 3.22 3.20 3.17 3.14 3.06 2.99 2.95 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 7.64 4.68 3.17 3.08 3.10 3.13 3.06 3.01 2.98 2.94 2.92 11 92 to 182 days 7.69 4.92 3.47 3.41 3.42 3.44 3.38 3.35 3.31 3.27 3.23 12 183 days to 1 year 7.85 4.99 3.60 3.56 3.59 3.61 3.58 3.57 3.54 3.50 3.47 13 More than 1 year to 2Vi years 7.91 5.23 3.95 3.90 3.93 4.02 3.94 3.89 3.84 3.85 3.76 14 More than 2 Vi years 7.99 5.98 4.91 4.84 4.88 5.00 5.02 4.98 4.89 4.84 4.77 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts ... 209,855 244,637 261,946 267,709 275,465 286,541 277,226 279,904 288,426 281,202 284,394 16 Savings deposits2 570,270 652,058 725,256 736,057 740,841 738,253 733,833 742,966 748,427 745,515 753,870 17 Personal n.a. 508,191 565,385 570,532 575,399 578,757 579,715 585,309 591,879 587,244 591,800 18 Nonpersonal n.a. 143,867 159,871 165,525 165,442 159,496 154,118 157,657 156,547 158,271 162,069 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 50,189 47,094 38,363 39,472 38,985 38,474 38,257 36,739 35,748 34,743 33,424 20 92 to 182 days 168,044 158,605 129,988 128,683 127,636 127,831 128,050 128,214 125,914 122,309 119,366 21 183 days to 1 year 221,007 209,672 177,387 171,263 166,995 163,098 160,786 159,569 158,388 157,064 156,941 22 More than 1 year to 2Vl years 150,188 171,721 157,912 155,668 153,784 152,977 151,637 151,536 148,037 146,906 144,786 23 More than 2Vi years 139,420 158,078 167,382 168,556 168,586 169,708 169,351 172,312 177,789 178,984 180,054 24 IRA/Keogh Plan deposits 131,006 147,266 148,391 147,664 147,319 147,350 147,039 146,859 146,686 145,492 144,721 BIF-INSURED SAVINGS BANKS3 25 Negotiable order of withdrawal accounts 8,404 9,624 10,388 10,126 10,642 10,871 9,981 9,919 10,412 10,026 10,168 26 Savings deposits 64,456 71,215 81,922 81,022 82,919 81,786 79,775 80,061 80,480 79,773 80,315 27 Personal n.a. 68,638 78,752 77,798 79,667 78,695 76,799 77,039 77,371 76,740 77,203 28 Nonpersonal n.a. 2,577 3,170 3,224 3,252 3,091 2,976 3,022 3,109 3,034 3,112 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 5,724 4,146 3,819 3,695 3,895 3,867 3,562 3,479 3,551 3,496 3,428 30 92 to 182 days 25,864 21,686 17,928 17,298 17,632 17,345 16,248 15,959 15,468 15,237 14,986 31 183 days to 1 year 37,929 29,715 24,376 23,085 22,888 21,780 20,848 20,436 20,164 19,805 19,579 32 More than 1 year to 2Vi years 26,103 25,379 20,491 19,330 19,258 18,442 17,717 17,533 17,207 16,718 16,444 33 More than 2n years 20,243 18,665 19,929 19,128 19,543 18,845 18,633 18,902 19,261 19,273 19,534 34 IRA/Keogh Plan accounts 23,535 23,007 23,484 22,069 22,265 21,713 21,491 21,418 21,252 21,014 20,922 1. Data in this table also appear in the Board's H.6 (508) Special Supplementary IRA/Keogh deposits and foriegn currency denominated deposits. Data exclude Table monthly statistical release. For ordering address, see inside front cover. retail repurchase agreements and deposits held in U.S. branches and agencies of Estimates are based on data collected by the Federal Reserve System from a foreign banks. stratified random sample of about 460 commercial banks and 80 savings banks on 2. Includes personal and nonpersonal money market deposits. the last Wednesday of each period. Data are not seasonally adjusted and include 3. BIF-insured savings banks include both mutual and federal savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates All 1.23 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 11999900 22 1199991122 1199992222 Oct. Nov. Dec. Jan. Feb. Mar. DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 277,157.5 277,758.0 315,806.1 326,893.0 322,187.1 331,038.8 330000,,665544..99** 331,183.5r 331,040.2 2 Major New York City banks 131,699.1 137,352.3 165,572.7 176,372.6 173,393.4 176,089.1 159,192.4r 176,683.5 166,866.6 3 Other banks 145,458.4 140,405.7 150,233.5 150,520.4 148,793.7 154,949.8 141,462.4r 154,500^ 164,173.5 4 Other checkable deposits4 3,349.0 3,645.5 3,788.1 3,700.5 3,610.0 3,683.9 3,292.3r 3,601.3r 3,572.8 5 Savings deposits including MMDAs 3,483.3 3,266.1 3,331.3 3,468.2 3,497.2 3,407.3 3,032.3 3,363.3 3,562.7 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 797.8 803.5 832.4 818.9 796.1 830.5 746.6r 817.5 811.4 7 Major New York City banks 3,819.8 4,270.8 4,797.9 4,855.5 4,624.0 4,693.3 4,154.7 4,525.8 4,129.1 8 Other banks 464.9 447.9 435.9 414.8 405.2 429.1 388.3 422.0 446.6 9 Other checkable deposits4 16.5 16.2 14.4 13.5 12.9 13.1 11.6 12.6 12.5 10 Savings deposits including MMDAs 6.2 5.3 4.7 4.7 4.7 4.6 4.1 4.5 4.8 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 277,290.5 277,715.4 315,808.2 335,289.0 308,015.6 340,982.1 304,813.5r 303,672.3r 339,186.6 12 Major New York City banks 131,784.7 137,307.2 165,595.0 182,584.2 167,578.4 179,987.6 159,198.8 161,174.1 170,855.0 13 Other banks 145,505.8 140,408.3 150,213.3 152,704.8 140,437.2 160,994.5 145,614.7r 142,498.2r 168,331.6 14 Other checkable deposits4 3,346.7 3,645.6 3,788.1 3,689.7 3,351.3 3,849.3 3,296.6r 3,630.5 15 Savings deposits including MMDAs3 3,483.0 3,267.7 3,329.0 3,403.2 3,240.4 3,588.0 3,248.7r 3,080.3 3,529.1 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 798.2 803.4 832.5 839.2 754.3 815.2 738.3 771.9 854.5 17 Major New York City banks 3,825.9 4,274.3 4,803.5 5,025.6 4,494.4 4,418.1 3,936.3 4,213.4 4,385.4 18 Other banks 465.0 447.9 436.0 420.5 378.5 426.5 391.0 401.2 470.2 19 Other checkable deposits4 16.4 16.2 14.4 13.7 12.1 13.5 12.4 11.6 12.6 20 Savings deposits including MMDAs 6.2 5.3 4.7 4.6 4.4 4.8 4.4 4.1 4.7 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

A18 Domestic Financial Statistics • August 1993 1.24 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars, averages of Wednesday figures 1992 1993 IItteemm June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Apr.r May Seasonally adjusted 1 Total loans and securities1 2,882.8 2,886.9 2,902.2 2,917.4 2,926.0 2,932.4 2,937.6 2,933.4r 2,937.7 2,951.2r 2,963.4 2,985.4 2 U.S. government securities 610.7 619.2 632.6 640.6 647.3 651.4 657.1 656.9 667.3 681.7 691.6 694.2 3 Other securities 175.8 177.9 178.2 178.2 178.8 177.3 176.0 174.0 175.2 177.0 178.3 179.5 4 Total loans and leases1 2,096.2 2,089.8 2,091.4 2,098.6 2,099.8 2,103.8 2,104.6r 2,102.4r 2,095.2 2,092.6r 2,093.5 2,111.7 5 Commercial and industrial ..... 604.6 602.5 601.4 601.2 600.8 600.5 597.6 598. lr 596.1 592.5 589.9 592.8 6 Bankers acceptances held2... 6.3 6.5 6.5 6.3 7.5 7.9 7.8 7.5r 8.7 8.9r 9.0 9.6 7 Other commercial and industrial 598.4 596.0 594.9 594.9 593.3 592.6 589.9 590.6r 587.4 583.6r 580.9 583.2 8 U.S. addressees 588.3 585.3 584.3 583.6 582.6 582.3 580.2 sso^ 577.6 573.4r 571.1 573.6 9 Non-U.S. addressees3 10.1 10.7 10.6 11.3 10.7 10.3 9.7 9.7 9.8 10.1 9.7 9.6 10 Real estate 881.8 881.5 883.1 886.8 890.7 892.5 892.4 889.9r 887.8 888.2r 887.5 893.7 11 Individual 359.0 358.6 357.4 357.0 355.8 355.4 355.5 358.2 360.4 360.9 364.2 366.8 12 Security 63.3 60.5 61.6 64.0 64.7 64.2 64.8 63.0 61.7 62.5 6600..77 6666..88 13 Nonbank financial institutions 42.4 41.5 42.0 44.0 43.9 44.7 43.6 44.9 44.7 44.5 45.3 45.9 14 Agricultural 34.6 34.9 35.3 35.2 35.1 35.2 35.0 34.5 34.3 34.0r 34.0 3344..11 15 State and political subdivisions 26.8 26.2 25.9 25.8 25.4 25.1 24.8 24.2 23.7 23.4 23.1 23.3 16 Foreign banks 7.5 7.7 7.2 7.9 7.6 7.5 7.7 7.7 8.5 8.1 8.0 8.1 IV Foreign official institutions 2.0 2.2 2.3 2.5 2.4 2.8 2.8 2.8 3.0 2.9 2.9 2.8 18 Lease-financing receivables 31.0 30.8 30.8 31.0 30.8 30.9 30.9 30.3 30.4 30.3 30.4 30.7 19 All other loans 43.3 43.2 44.3 43.2 42.6 45.0 49.5 48.8 44.5 45.3 47.6 46.7 Not seasonally adjusted 20 Total loans and securities1 2,882.9 2,876.1 2,894.5 2,914.9 2,925.2 2,939.0 2,947.4r 2,935.5r 2,940.5 2,955.0r 2,965.0 2,980.3 21 U.S. government securities 608.9 615.3 631.3 638.7 645.1 654.1 655.8 657.3 670.9 687.4 693.4 693.2 22 Other securities 175.4 176.8 178.1 177.9 179.2 178.3 176.2 174.6 175.4 176.6r 177.7 179.0 23 Total loans and leases 2,098.7 2,084.0 2,085.0 2,098.3 2,100.9 2,106.6 2,115.4 2,103.6r 2,094.2 2,090.9r 2,093.9 2,108.2 2 2 4 5 Co B m a m nk e e rc rs ia l a c a c n e d p t i a n n d c u e s s tr i h al e l . d . 2. . . . . . 60 6 6 . . 2 5 60 6 1 . . 3 5 59 6 7 . . 3 6 59 6 7 . . 2 6 59 7 8 . . 4 4 60 8 0 . . 2 8 60 8 0 . . 0 6 59i6..5r r 59 9 5 . . 1 3 59 9 5 . .7 0 r 59 8 2 . . 9 9 59 9 4 . . 5 6 26 Other commercial and industrial 600.3 595.2 591.4 591.4 591.0 592.6 592.5 588^ 586.2 586.6r 584.0 585.1 27 U.S. addressees3 589.5 584.2 580.5 580.3 580.7 582.8 583.0 579.2r 576.3 576.7r 574.2 575.5 28 Non-U.S. addressees3 10.8 11.0 10.8 11.1 10.3 9.8 9.5 9.6 9.8 10.0 9.8 9.6 29 Real estate 882.0 881.6 883.7 887.6 891.5 893.9 893.7r 889.6r 886.0 885.6r 886.4 893.7 30 Individual 357.2 356.4 356.9 358.6 356.2 356.3 360.0 362.3 360.4 358.5r 361.6 365.0 31 Security 63.5 58.0 59.4 62.5 64.2 63.5 65.5 64.5 64.7 64.6 6644..00 6633..88 32 Nonbank financial institutions 42.9 41.3 41.8 43.5 43.5 45.0 45.6 45.1 44.6 44.2r 44.7 45.3 33 Agricultural 35.1 35.8 36.5 36.7 36.1 35.2 34.8 33.6r 33.0 32.7r 3333..22 3333..77 34 State and political subdivisions 26.8 26.1 25.9 25.9 25.5 25.2 24.8 24.0 23.6 23.5r 23.1 23.3 35 Foreign banks 7.3 7.8 7.0 8.1 7.8 7.8 8.2 7.7 8.4 7.8 7.7 7.9 36 Foreign official institutions 2.0 2.2 2.3 2.5 2.4 2.8 2.8 2.8 3.0 2.9 2.9 2.8 37 Lease-financing receivables .... 31.0 30.6 30.6 30.8 30.8 30.8 30.9 30.7 30.6 30.5 30.5 30.7 38 All other loans 44.4 42.6 43.2 44.6 44.4 45.4 48.6 46.6 44.7 45.0 47.1 47.3 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

Commercial Banking Institutions A19 1.25 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1992 1993 SSoouurrccee ooff ffuunnddss June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Mar. Apr. May Seasonally adjusted 11111 TTTTToooootttttaaaaalllll nnnnnooooonnnnndddddeeeeepppppooooosssssiiiiittttt fffffuuuuunnnnndddddsssss22222 295.9 297.0 302.5 309.5 304.6 308.4 312.0 310.8 309.8r 319.7 328.3r 324.0 22222 NNNNNeeeeettttt bbbbbaaaaalllllaaaaannnnnccccceeeeesssss ddddduuuuueeeee tttttooooo rrrrreeeeelllllaaaaattttteeeeeddddd fffffooooorrrrreeeeeiiiiigggggnnnnn oooooffffffffffiiiiiccccceeeeesssss ............... 61.2 61.7 61.4 64.0 63.8 68.1 71.8 74.1 73.3 79. lr 88.3 83.1 33333 BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss fffffrrrrrooooommmmm ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss iiiiinnnnn UUUUUnnnnniiiiittttteeeeeddddd SSSSStttttaaaaattttteeeeesssss44444 234.7 235.3 241.1 245.6 240.9 240.2 240.2 236.7 236.5r 240.6r 240.C 240.9 44444 DDDDDooooommmmmeeeeessssstttttiiiiicccccaaaaallllllllllyyyyy ccccchhhhhaaaaarrrrrttttteeeeerrrrreeeeeddddd bbbbbaaaaannnnnkkkkksssss 147.6 147.2 151.6 153.5 154.7 153.9 154.7 155.1 155.6 159.8 164.3 162.5 55555 FFFFFooooorrrrreeeeeiiiiigggggnnnnn-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaannnnnkkkkksssss 87.2 88.1 89.6 92.1 86.2 86.3 85.5 81.6 80^ 80.8r 75.6 78.5 Not seasonally adjusted 66666 TTTTToooootttttaaaaalllll nnnnnooooonnnnndddddeeeeepppppooooosssssiiiiittttt fffffuuuuunnnnndddddsssss22222 295.2 291.5 297.6 304.1 306.9 313.7 311.9 309.7 314.1r 324.5r 324.5r 328.7 77777 NNNNNeeeeettttt bbbbbaaaaalllllaaaaannnnnccccceeeeesssss ddddduuuuueeeee tttttooooo rrrrreeeeelllllaaaaattttteeeeeddddd fffffooooorrrrreeeeeiiiiigggggnnnnn oooooffffffffffiiiiiccccceeeeesssss ............... 59.2 58.4 57.6 61.6 64.9 69.8 75.9 76.7 75. lr 79.8r 85.4 85.3 88888 DDDDDooooommmmmeeeeessssstttttiiiiicccccaaaaallllllllllyyyyy ccccchhhhhaaaaarrrrrttttteeeeerrrrreeeeeddddd bbbbbaaaaannnnnkkkkksssss -6.3 -7.0 -9.3 -11.0 -13.4 -12.6 -15.1 -15.8 -10.6 -7.0 -9.5 -9.8 99999 FFFFFooooorrrrreeeeeiiiiigggggnnnnn-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaannnnnkkkkksssss 65.6 65.4 66.9 72.6 78.3 82.4 91.0 92.5 85.7r 86.8r 94.9 95.1 1111100000 BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss fffffrrrrrooooommmmm ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss iiiiinnnnn UUUUUnnnnniiiiittttteeeeeddddd SSSSStttttaaaaattttteeeeesssss44444 236.0 233.1 239.9 242.5 242.0 243.8 236.0 233.0 238.9r 244.7r 239.lr 243.4 1111111111 DDDDDooooommmmmeeeeessssstttttiiiiicccccaaaaallllllllllyyyyy ccccchhhhhaaaaarrrrrttttteeeeerrrrreeeeeddddd bbbbbaaaaannnnnkkkkksssss 147.4 144.1 150.5 152.3 155.8 158.4 153.7 152.1 157.3 162.7 162.3 164.0 1111122222 FFFFFeeeeedddddeeeeerrrrraaaaalllll fffffuuuuunnnnndddddsssss aaaaannnnnddddd ssssseeeeecccccuuuuurrrrriiiiitttttyyyyy RRRRRPPPPP bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss 143.3 140.0 146.6 148.5 152.3 154.3 149.7 148.5 154.1 159.3 158.9 160.3 1111133333 OOOOOttttthhhhheeeeerrrrr 4.1 4.2 3.9 3.8 3.6 4.1 4.0 3.6 3.2 3.3 3.5 3.7 1111144444 FFFFFooooorrrrreeeeeiiiiigggggnnnnn-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaannnnnkkkkksssss66666 88.6 89.0 89.5 90.1 86.1 85.5 82.3 80.9 81.6r 82.0r 76.8r 79.4 MMMMMEEEEEMMMMMOOOOO GGGGGrrrrrooooossssssssss lllllaaaaarrrrrgggggeeeee tttttiiiiimmmmmeeeee dddddeeeeepppppooooosssssiiiiitttttsssss 1111155555 SSSSSeeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 393.3 387.7 385.8 383.2 375.7 371.3 366.5 359.9 358.4 355.7 355.0? 356.2 1111166666 NNNNNooooottttt ssssseeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 394.9 387.4 387.1 383.6 374.9 371.1 365.5 358.0 358.0 356.5 354.2r 357.9 UUUUU.....SSSSS..... TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy dddddeeeeemmmmmaaaaannnnnddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss 1111177777 SSSSSeeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 24.7 23.1 28.0 24.1 21.5 20.7 20.4 25.6 23.6 18.8 24.2 19.1 1111188888 NNNNNooooottttt ssssseeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 25.2 19.6 22.4 28.6 21.9 16.5 19.5 33.1 29.5 17.4 20.3 20.3 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

A20 DomesticN onfinancialS tatistics • August 1993 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures Millions of dollars 1993 Account Mar. 31r Apr. 7r Apr. 14r Apr. 21r Apr. 28r May 5 May 12 May 19 May 26 ALL COMMERCIAL BANKING INSTITUTIONS2 Assets 1 Loans and securities 3,117,484 3,119,369 3,122,119 3,106,482 3,106,722 3,125,230 3,127,592 3,124,017 3,121,949 2 Investment securities 833,241 832,726 832,509 832,192 829,265 834,071 834,330 831,659 828,556 3 U.S. government securities 670,170 669,7% 668,080 668,480 665,163 669,516 669,373 666,654 664,917 4 Other 163,071 162,930 164,429 163,712 164,103 164,555 164,957 165,005 163,638 5 Trading account assets 36,247 39,174 39,447 38,119 40,102 39,677 36,009 40,589 36,428 6 U.S. government securities 22,194 25,351 25,269 24,855 26,031 25,638 22,140 25,328 21,411 7 Other securities 2,459 2,369 2,248 2,334 2,573 2,676 2,488 2,649 2,844 8 Other trading account assets 11,593 11,453 11,930 10,930 11,498 11,363 11,382 12,612 12,173 9 Total loans 2,247,997 2,247,470 2,250,163 2,236,171 2,237,355 2,251,482 2,257,253 2,251,769 2,256,%5 10 Interbank loans 164,459 156,340 157,064 141,480 143,466 147,890 150,071 146,763 151,016 11 Loans excluding interbank 2,083,538 2,091,130 2,093,099 2,094,692 2,093,889 2,103,592 2,107,183 2,105,006 2,105,949 12 Commercial and industrial 593,867 592,319 590,589 594,013 593,8% 595,165 592,876 593,739 593,938 13 Real estate 885,706 885,206 886,720 884,933 887,495 890,819 894,561 892,585 893,546 14 Revolving home equity 73,483 73,364 73,637 74,031 74,204 74,271 74,343 74,306 74,402 15 Other 812,223 811,842 813,083 810,902 813,291 816,548 820,218 818,279 819,144 16 Individual 358,806 358,893 360,521 362,284 364,236 362,769 364,211 365,207 366,840 17 All other 245,161 254,712 255,269 253,461 248,263 254,839 255,535 253,476 251,626 18 Total cash assets 214,219 206,290 217,384 203,367 213,471 211,863 215,129 200,016 217,049 19 Balances with Federal Reserve Banks 30,287 28,422 32,645 25,760 29,086 29,309 35,090 24,597 38,281 20 Cash in vault 31,376 29,656 32,289 32,038 32,153 29,367 31,583 31,814 32,623 21 Demand balances at U.S. depository institutions 29,092 29,551 30,921 29,395 31,350 32,105 30,515 29,919 30,733 22 Cash items 82,103 77,123 81,815 75,381 80,119 81,935 78,808 74,077 74,862 23 Other cash assets 41,361 41,538 39,714 40,794 40,762 39,147 39,133 39,610 40,550 24 Other assets 278,472 276,391 274,472 269,984 262,627 275,776 269,819 272,876 267,484 25 Total assets 3,610,175 3,602,050 3,613,974 3,579,833 3,582,820 3,612,869 3,612,540 3,596,909 3,606,481 Liabilities 26 Total deposits 2,489,080 2,504,583 2,513,936 2,467,%3 2,476,114 2,511,258 2,499,013 2,479,234 2,483,275 27 Transaction accounts 761,831 769,067 783,344 746,886 755,143 774,452 761,148 748,091 753,730 28 Demand, U.S. government 3,940 3,268 4,844 4,768 3,852 3,564 3,011 3,134 3,333 29 Demand, depository institutions 35,891 38,144 38,342 37,387 39,306 40,204 38,471 37,900 38,912 30 Other demand and all checkable deposits 722,001 727,655 740,159 704,730 711,986 730,684 719,666 707,058 711,485 31 Savings deposits (excluding checkable) 751,699 762,119 759,114 748,149 748,800 760,924 764,031 758,956 758,574 32 Small time deposits 628,083 627,483 625,787 623,299 622,395 621,824 621,093 619,714 618,621 33 Time deposits over $100,000 347,466 345,914 345,690 349,629 349,776 354,058 352,742 352,473 352,351 34 Borrowings 493,002 483,866 479,794 494,746 490,654 488,721 490,769 500,705 497,978 35 Treasury tax and loan notes 14,853 3,877 6,054 32,986 24,738 18,546 14,143 16,619 14,737 36 Other 478,149 479,989 473,740 461,760 465,916 470,175 476,626 484,086 483,241 37 Other liabilities 346,411 333,182 338,499 335,255 336,771 330,988 339,079 333,652 342,6% 38 Total liabilities 3,328,493 3,321,631 3,332,229 3,297,964 3,303,539 3,330,967 3,328,861 3,313,591 3,323,948 39 Residual (assets less liabilities)3 281,682 280,419 281,746 281,870 279,281 281,902 283,679 283,318 282,533 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A21 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures—Continued Millions of dollars 1993 Mar. 31r Apr. 7r Apr. 14r Apr. 21r Apr. 28r May 5 May 12 May 19 May 26 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 6 6 5 5 5 5 5 6 6 0 3 4 1 2 5 7 6 8 9 0 4 5 7 8 0 1 1 2 3 6 9 2 3 L A T O s o o t s T I T D C C B O h a t e n a r o n e t a a a e t v l O s a O U O I U L r s t h s s l m n d e a a h h c o e t t t . . a l t s a i I n A h C R h a h S a r S a e n s n t n i i n l c s e e . e . m n e o l n r g s t c o d d h r l O r R r d e e b s e a m g g a a i s e m l v a o t a e v t t s s s a o o n s b e n m r h c a n t v h e e i w e s s s v v a x t a h d c e u k c c o s s e d e e l i c r e u a o l u u t e l s t a r t r r i r l a l v h s a u e c r t r n n u n n o s t s l i i i c n i g e d c m m n t a t e F a u t i i e i g n l t e e e e r e a n s s s a s s i d n a n g c h t s a t t e n c i o s e t i d r o e s s m n s a u U t e e l t s i e n e c c n . R t r u u S d e b r r e . u a q a i i s s s t t u d n e i i t s i e k e e r r e t i s s p y v t a s o e l s B it a o n ry k s i nstitutions . 2 1 1 , , , 7 7 6 4 7 8 3 8 9 1 1 1 1 1 6 3 2 7 6 2 6 4 7 2 3 5 2 3 2 6 3 4 1 9 8 1 8 3 2 6 8 1 0 2 0 9 3 2 6 8 8 5 1 7 7 1 1 2 4 7 1 , , , , , , , , , , , , , , , , , , , , , , , , 3 1 2 4 1 8 7 7 2 2 4 6 4 8 6 0 3 3 6 5 8 6 6 6 4 9 4 6 2 2 3 1 1 8 3 2 2 9 3 0 5 8 4 1 1 2 1 1 5 4 7 2 6 1 5 1 8 6 5 4 5 3 6 6 9 3 6 6 5 2 5 1 2 1 1 , , , 7 7 6 4 7 8 8 3 2 9 1 1 1 1 7 3 2 7 6 2 6 3 3 7 2 2 2 5 7 3 0 1 4 3 7 7 1 7 9 5 4 1 1 3 8 8 9 3 8 8 8 2 6 6 4 1 0 8 9 8 8 , , , , , , , , , , , , , , , , , , , , , , , , 7 1 3 7 5 2 1 4 3 8 9 6 3 0 1 3 5 1 1 4 7 1 3 9 7 7 5 0 0 2 9 0 1 6 2 6 2 9 5 5 6 9 7 8 8 5 3 4 4 6 1 2 9 0 3 1 5 6 5 4 8 2 8 3 9 8 8 0 4 7 6 8 2 1 1 , , , 7 7 6 4 7 2 8 8 3 9 1 1 1 1 7 6 2 3 2 7 6 3 0 3 7 3 3 2 6 7 3 1 3 4 1 8 9 6 2 9 1 5 9 2 4 7 9 2 9 3 3 1 4 0 8 5 1 1 8 0 1 , , , , , , , , , , , , , , , , , , , , , , , , 9 4 7 2 5 3 3 5 1 2 7 5 2 5 6 9 4 1 4 1 9 6 4 6 4 4 0 6 3 1 9 3 2 5 0 5 1 7 3 4 6 7 4 6 3 4 4 6 4 7 5 9 8 4 1 6 1 2 3 9 9 7 7 8 8 3 8 9 0 0 6 9 2 1 1 , , , 7 7 6 4 2 9 8 7 3 8 1 1 1 1 6 3 2 2 6 0 3 7 2 3 2 7 6 6 6 3 3 1 2 4 1 7 7 3 4 8 2 2 0 9 2 5 4 2 7 2 2 2 6 2 8 4 0 0 8 2 6 , , , , , , , , , , , , , , , , , , , , , , , , 3 8 1 0 7 1 4 2 0 1 1 3 0 5 6 2 9 3 4 4 9 3 8 8 7 5 1 6 4 3 8 9 7 0 8 9 8 3 8 2 8 9 3 6 3 5 3 5 6 5 9 4 1 2 4 3 2 7 1 5 8 1 1 9 4 6 4 1 0 4 2 9 2 1 1 , , , 7 7 6 4 8 7 3 9 8 1 1 1 1 1 4 6 2 5 1 3 7 2 2 7 3 6 6 6 3 3 2 1 4 9 1 6 8 0 2 6 9 8 9 6 8 4 9 2 2 8 4 4 2 7 4 1 1 4 8 8 5 , , , , , , , , , , , , , , , , , , , , , , , , 1 0 0 4 2 9 9 4 5 2 8 5 3 2 5 9 1 5 4 1 4 8 8 7 0 4 3 0 2 3 5 4 2 0 9 5 5 3 6 7 2 9 5 6 5 9 0 8 2 7 1 2 4 7 1 3 1 4 4 4 0 6 3 3 3 8 0 5 4 3 9 5 2 1 1 , , , 7 7 6 4 8 7 3 2 9 8 1 1 1 1 8 3 2 6 2 4 7 2 2 7 6 0 6 8 4 3 5 2 1 4 1 7 8 3 9 5 2 0 1 4 8 9 9 2 2 4 1 7 2 1 0 9 1 1 6 6 5 , , , , , , , , , , , , , , , , , , , , , , , , 0 6 6 1 7 9 2 7 7 2 8 9 8 6 3 7 2 5 6 3 3 6 7 2 7 7 3 2 3 4 8 6 7 7 1 8 3 8 4 1 7 5 3 6 3 7 5 7 7 9 8 0 9 2 2 9 7 1 1 8 6 1 6 7 6 9 8 3 8 1 5 5 2 1 1 , , , 7 7 6 4 8 7 3 2 9 8 1 1 1 1 8 3 2 6 2 3 7 4 0 7 6 8 5 3 2 7 1 3 2 4 7 8 1 1 6 2 2 3 1 9 4 6 1 3 4 1 4 4 8 6 1 7 1 1 6 8 7 , , , , , , , , , , , , , , , , , , , , , , , , 0 1 3 5 4 9 8 8 3 1 3 0 9 7 2 7 2 5 7 6 6 1 2 0 0 4 5 7 4 8 8 1 0 0 2 9 4 7 8 5 1 1 5 3 0 8 3 5 9 0 2 9 3 2 8 8 6 1 4 4 3 7 2 8 1 0 2 9 7 1 6 6 2 1 1 , , , 7 7 6 4 9 8 7 3 2 8 1 1 1 1 4 7 2 3 6 1 7 7 6 6 4 0 2 3 2 7 4 1 2 4 1 7 7 0 6 5 9 4 1 9 2 4 5 9 4 0 9 4 1 1 8 2 5 1 7 2 4 , , , , , , , , , , , , , , , , , , , , , , , , 5 3 3 6 2 2 0 3 8 6 1 5 3 1 1 8 7 6 6 6 6 7 6 2 2 8 9 6 0 0 8 4 9 1 4 4 1 2 0 9 8 8 0 8 3 1 9 0 8 9 2 3 7 1 2 5 9 5 7 9 1 6 8 8 4 4 2 2 3 6 2 8 2 1 1 , , , 7 7 6 4 9 8 7 3 8 1 1 1 1 1 7 3 2 1 7 3 5 7 3 7 6 4 7 4 3 2 1 2 4 9 1 6 9 3 1 6 2 8 7 9 7 4 7 2 6 9 5 0 2 9 8 2 0 8 8 9 0 , , , , , , , , , , , , , , , , , , , , , , , , 4 6 0 4 0 8 7 9 4 8 6 4 8 9 0 5 6 2 9 1 1 0 3 1 1 3 6 2 4 4 4 8 6 4 0 6 9 0 1 9 1 0 8 7 7 0 7 2 1 4 7 8 8 4 4 6 5 0 2 9 1 8 5 3 9 6 4 3 1 5 8 2 64 Total assets 3,129,578 3,135,269 3,149,058 3,112,562 3,116,725 3,145,109 3,145,796 3,123,262 3,132,523 6 6 6 6 6 7 7 7 7 7 7 7 8 5 6 7 9 0 1 2 3 5 4 6 L T B i o o a T T O S S T O t b r a m r r a i r i t t l m l D a o D O e v h h i a n t w a d i e e e e t i e l n e s s r h l r e m m i s a g d u p n e t l s c e a r r a i i o g y a t m p n n s s d i d b o d o i d e e t e i t , n , s a s l p m i i d x d o U t t a e i s a e s e a c p . n p i s S n o c t o d o s d . o v s s u a e i g ( i l t r e n n t o s o o x d t a v $ s r c n 1 e y a l 0 r u l n n l 0 i d o n m , c i 0 t s n h e e 0 t g s i e 0 n t c t u c k t h i a e o b c n l k e s a d b e le p ) o sits 2,3 7 2 7 7 6 3 3 1 3 1 4 3 7 1 5 4 2 4 1 4 2 8 2 3 2 1 7 7 5 4 4 , , , , , , , , , , , , 4 2 9 8 0 9 2 9 4 9 5 8 8 0 3 8 9 7 3 9 1 3 4 5 7 2 4 4 7 1 1 6 9 9 3 3 2,3 7 2 7 7 6 3 3 1 5 5 1 3 6 6 5 1 2 3 8 7 7 5 3 4 1 7 9 5 3 4 , , , , , , , , , , , , 3 7 3 2 2 9 0 9 2 3 8 7 4 5 6 1 6 6 9 3 0 5 4 7 2 2 7 8 7 8 1 4 8 8 8 7 2,3 7 7 7 6 2 3 3 1 6 3 1 6 6 7 2 5 3 3 7 4 5 6 1 7 2 3 4 1 6 5 , , , , , , , , , , , , 6 7 7 8 2 8 4 6 9 9 0 0 6 8 8 3 2 4 7 4 3 8 3 5 4 8 1 5 6 3 1 6 1 0 6 4 2,3 7 6 2 7 6 3 3 1 1 3 3 1 9 8 4 4 2 3 3 8 4 4 5 7 6 2 4 9 1 2 2 , , , , , , , , , , , , 6 6 9 4 7 4 5 0 4 1 7 9 5 9 7 6 8 5 6 6 1 9 8 8 9 5 7 2 5 1 8 6 5 9 7 6 2,3 7 7 7 6 2 3 3 1 3 2 4 1 8 4 0 2 2 5 3 6 3 2 6 0 4 1 0 4 3 6 6 , , , , , , , , , , , , 0 6 4 5 8 7 7 8 2 0 7 2 9 1 2 2 5 3 9 5 8 8 1 3 7 3 3 7 0 5 6 1 5 2 2 8 2,3 7 7 2 7 6 3 3 1 5 3 6 1 2 7 5 1 5 1 3 8 7 3 8 2 3 0 6 9 1 7 8 , , , , , , , , , , , , 0 5 1 4 5 6 3 6 6 8 9 5 8 6 9 6 1 0 5 8 6 1 7 4 4 4 0 4 6 5 8 1 1 2 7 6 2,3 7 7 7 6 2 3 3 1 4 7 6 4 1 1 1 5 3 4 1 6 3 8 4 9 0 8 8 9 5 0 4 , , , , , , , , , , , , 5 0 0 4 2 5 9 1 7 6 6 1 5 1 1 4 5 8 8 9 6 0 7 4 4 1 1 5 5 4 2 9 7 3 9 3 2,3 7 6 7 2 6 3 3 1 2 9 5 3 1 3 8 1 6 1 3 6 9 4 7 6 5 3 0 7 4 6 6 , , , , , , , , , , , , 3 2 6 4 5 1 7 1 5 1 0 6 5 5 6 9 9 0 6 9 3 4 5 1 1 7 1 6 6 6 0 7 3 1 0 9 2,3 7 7 7 6 2 3 3 1 2 4 1 5 8 1 0 3 6 1 4 9 2 6 4 3 6 3 6 3 8 4 0 , , , , , , , , , , , , 7 5 3 2 1 1 5 1 3 3 7 3 0 9 1 7 1 1 2 3 4 3 8 8 3 5 6 2 7 3 0 3 9 7 8 0 77 Total liabilities 2,851,113 2,858,068 2,870,530 2,833,910 2,840,662 2,866,424 2,865,334 2,843,161 2,853,208 78 Residual (assets less liabilities)3 278,465 277,201 278,528 278,652 276,063 278,684 280,462 280,100 279,315 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

A22 DomesticN onfinancial Statistics • August 1993 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1993 AAccccoouunntt Mar. 31r Apr. 7 Apr. 14 Apr. 21 Apr. 28" May 5 May 12 May 19 May 26 ASSETS 1 Cash and balances due from depository institutions 105,518 103,803r 112,024 101,677 109,047 106,657 110,686 97,947 113,587 ? U.S. Treasury and government securities 283,624 288,386" 288,949" 289,088" 288,313 291,535 287,913 289,755 284,649 Trading account 18,987 22,606 22,858 22,570 23,644 23,455 19,998 23,059 19,204 4 Investment account 264,637 265,780" 266,091" 266,518" 264,670 268,080 267,915 266,6% 265,445 5 Mortgage-backed securities1 83,464 83,713r 83,613" 83,941" 84,294 84,233 83,790 81,635 81,844 All others, by maturity 6 One year or less 41,264 41,062 40,838 41,560 40,625 42,278 43,229 45,156 44,769 7 One year through five years 74,339 74,397 74,691 74,542 73,936 73,679 73,868 73,788 74,436 8 More than five years 65,570 66,608 66,949 66,474 65,815 67,889 67,028 66,117 64,395 9 Other securities 57,081 55,847 55,899 55,726 56,106 55,817 55,843 55,8% 55,651 10 Trading account 2,276 2,187 2,063 2,151 2,389 2,492 2,303 2,466 2,666 11 Investment account 54,805 53,660 53,837 53,575 53,717 53,325 53,540 53,429 52,985 1? State and political subdivisions, by maturity 20,026 19,861 19,880 19,879 19,928 19,774 19,807 19,814 19,828 N One year or less 3,392 3,375 3,402 3,394 3,426 3,407 3,451 3,445 3,465 14 More than one year 16,634 16,486 16,478 3163,48,46 96 16,503 16,367 16,356 16,369 16,363 N Other bonds, corporate stocks, and securities 34,779 33,799 33,957 33,789 33,551 33,733 33,615 33,157 16 Other trading account assets 11,470 11,331 11,805 10,808 11,376 11,240 11,258 12,490 12,052 17 Federal funds sold2 81,565 85,507 86,530 84,493" 81,028 86,252 85,374 81,413 81,305 18 To commercial banks in the United States 58,381 54,169 54,724 52,351 54,691 53,820 53,475 52,407 55,686 19 To nonbank brokers and dealers 19,473 24,815 26,113 26,806 21,965 26,538 26,228 24,746 20,464 70 To others3 3,711 6,524 5,693 5,336" 4,372 5,893 5,670 4,259 5,156 7n n 1 Ot C he o r m l m oa e n r s c i a a n l d a n l d e a i s n e d s, u s g t r r o ia s l s 9 2 7 7 5 7 , , 8 7 4 1 2 9 9 2 7 7 4 5 , , 2 0 4 9 8 8 r r 9 2 7 7 4 3 , , 1 8 0 2 7 2 " " 9 2 7 7 1 5 , , 6 2 8 0 8 4 " " 9 27 7 5 5 , , 5 1 8 6 4 2 9 2 7 7 8 7 , , 4 5 7 8 1 9 9 2 8 7 0 5 , , 0 7 6 % 9 9 27 7 5 8 , , 3 % 5 7 0 9 2 8 7 2 5 , ,8 2 8 2 2 7 Bankers acceptances and commercial paper 2,705 2,730 2,587 212,622,6S IT 3,079 3,090 3,045 3,079 3,134 74 All other 275,015 272,369" 271,235" 272,505 274,499 272,751 272,271 272,748 75 U.S. addressees 273,447 270,8 llr 269,662" 271,003" 270,950 272,902 271,184 270,766 271,161 7761 Non-U.S. addressees 1,568 1,557 1,574 1,574 1,555 1,597 1,567 1,505 1,587 Real estate loans 395,561 395,939" 397,014" 394,560" 396,028 395,589 397,977 395,771 3%, 100 78 Revolving, home equity 43,472 43,426" 43,560" 43,827" 43,905 43,827 43,819 43,824 43,876 79 All other 352,089 352,513" 353,453" 350,733" 352,124 351,762 354,158 351,947 352,224 30 To individuals for personal expenditures 183,738 183,119" 183,854 183,979 184,767 185,367 185,627 186,093 186,766 31 To financial institutions 33,750 35,028 33,832 33,272 34,761 35,189 34,854 35,793 36,703 37 Commercial banks in the United States 12,532 12,622 12,203 12,029 12,292 12,072 11,954 13,153 13,863 33 Banks in foreign countries 2,113 2,623 2,309 2,242 2,850 2,385 2,431 2,629 2,479 34 Nonbank financial institutions 19,104 19,783 19,320 19,001 19,619 20,731 20,470 20,011 20,361 35 For purchasing and carrying securities 15,587 15,382 17,349 16,511 15,627 16,104 16,832 16,706 16,556 36 To finance agricultural production 5,536 5,576 5,632 5,545 5,599 5,648 5,639 5,688 5,6% 37 To states and political subdivisions 14,033 13,881 13,848 13,800 13,798 13,777 13,671 14,082 14,053 38 To foreign governments and official institutions 1,379 1,438" 1,378" 1,352" 1,418 1,522 1,380 1,344 1,339 39 All other loans 24,132 24,356" 23,010" 23,099" 23,102 23,144 23,749 23,568 24,443 40 Lease-financing receivables 24,406 24,430 24,368 24,365" 24,477 24,541 24,545 24,574 24,689 4 4 1 ? LESS: U Lo n a e n a r a n n e d d l i e n a c s o e m r e e serve5< 36 2, , 1 2 5 6 3 7 36 2 , , 1 1 6 3 6 4 " 36 2 , , 2 1 0 4 7 2 " 3 2 5, , 9 1 6 3 2 2 " 35 2 , , 9 1 4 10 6 3 2 6, , 4 0 4 8 7 4 3 2 6, , 3 0 8 8 4 6 3 2 6 , , 0 4 9 0 4 1 36 2 , , 3 0 1 8 3 4 43 Other loans and leases, net 937,422 935,949" 935,759" 933,594" 937,106 939,940 941,599 940,472 943,831 44 Other assets 165,464 164,345" 167,773" 161,585" 157,827 164,273 164,709 162,125 159,513 45 Total assets 1,642,145 1,645,169" 1,658,740* l,636,971r 1,640,803 1,655,713 1,657,381 1,640,097 1,650,588 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A23 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1993 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28 LIABILITIES 4 4 4 4 6 6 5 5 5 5 5 5 5 5 5 6 6 5 6 7 8 9 2 3 0 1 3 4 5 6 7 8 9 0 1 2 De D T N p r o e o O I I O a m s n n n n i t t t d d D F t C S S U B D F s a U h h r s i i a o n a e t t o e e e a v v e . . a a c r d r r n S S r r p n p i i e t t t t e d d s . . i o e e k i h o i h d g i a o u f u s s s s o g s g g o n e i c n a a i i e n l o o l p a a i t t t l l d g d d n i o v o v n n s s o b g o e o e , , d d r r e e s a a f v n r o r y y r r i p s o p s l n e v t n n p p a a r d a s r b i i e n m o o m e n n r n r a r l i l m c t t o s s l e n e i i g n n e t a t t f t e n n n m i e i s i e i f n t n c c t t t i r r u u c e c t a c a o s s s t l t e l o n e h h t , i i s h r u o t o i i s s o s s p p e n n u u n f ' r f s s s t s b b a c i , , r c n d d t h i i i i h a d a n e n i i a e v v n a s n l c n t t o i d i d i k h h s s n f i s e i e d f s c c o o i t e o o c i n n U U t m r r i u s s a p p n n t a l i o o i i o n i t t r r n n e e d a a d d s s t t , t d i i i a S o o S t e n u n n t t p d a a s s t o i t t b o e e s a s s n it n s s k 4 . . s . . . . . . . . 1, 2 2 7 7 1 1 4 2 6 1 0 1 2 2 2 2 1 9 8 2 5 2 8 5 6 5 2 2 1 5 2 1 0 , , , , , , , , , , , , , , , , 8 8 4 0 6 5 3 1 1 5 1 4 8 0 5 0 2 3 4 4 2 1 6 9 1 5 0 8 5 6 1 9 5 4 2 3 7 1 5 1 5 4 2 3 3 2 1 2 5 0 6 0 2 0 1, 7 7 1 2 2 1 2 0 4 2 0 5 0 2 2 1 4 8 9 3 5 2 0 8 2 4 9 5 1 2 8 1 , , , , , , , , , , , , , , , , 2 7 8 1 3 5 7 5 5 4 6 0 0 1 2 8 3 8 1 7 4 4 6 9 7 2 4 1 7 6 6 2 5 1 3 3 2 2 2 7 9 2 6 3 2 1 0 7 8 6 8 5 2 8 1, 2 7 7 2 1 1 2 6 0 4 2 1 2 2 0 1 1 6 1 8 1 1 8 5 2 2 0 5 2 5 7 1 0 , , , , , , , , , , , , , , , , 3 8 5 3 1 7 1 6 7 4 2 0 6 7 5 6 5 3 8 4 2 9 2 5 9 0 9 1 5 2 0 3 8 4 9 4 1 1 2 4 3 9 4 9 8 5 8 6 6 9 0 4 0 0 1, 7 2 2 6 0 1 2 4 2 5 9 0 2 2 9 1 1 6 1 0 8 8 2 2 3 5 5 5 0 2 1 0 6 , , , , , , , , , , , , , , , , 0 0 5 1 7 1 8 8 9 0 4 1 1 0 2 4 8 3 3 1 5 9 5 3 5 0 4 9 4 7 2 0 2 8 1 4 1 4 4 2 1 8 4 5 0 1 5 5 9 3 9 2 0 2 1, 7 2 2 6 1 1 1 4 2 6 2 9 2 2 0 1 0 4 8 2 5 9 6 8 1 2 2 0 2 9 1 , , , , , , , , , , , , , , , 3 8 0 4 3 8 8 7 6 8 5 1 2 7 4 2 5 3 4 0 0 8 6 4 4 9 7 3 5 3 1 1 8 5 9 3 4 0 8 3 3 8 0 0 6 6 5 5 6 2 7 3 7 6 1, 2 7 7 2 1 1 2 6 0 4 2 2 1 2 2 2 4 6 9 8 3 8 2 9 2 8 1 0 3 2 1 1 , , , , , , , , , , , , , , , , 4 9 1 3 7 6 0 3 3 1 5 2 1 0 0 4 3 9 3 9 7 5 2 7 4 7 1 0 8 5 7 8 9 3 6 5 7 7 2 8 9 2 8 1 4 5 7 0 7 2 2 9 8 1 1, 2 7 7 1 2 1 4 2 7 0 2 2 2 2 3 2 1 8 4 9 3 9 0 1 3 0 3 6 0 2 0 1 , , , , , , , , , , , , , , , 9 7 9 6 8 9 3 0 9 1 6 2 0 2 4 0 3 9 6 9 2 8 1 4 4 3 1 3 8 3 4 5 4 9 3 8 2 7 7 0 5 3 6 9 6 5 7 3 4 9 6 5 6 4 1, 7 2 2 6 0 1 4 1 2 2 1 6 2 9 9 1 4 8 6 1 4 8 3 8 2 1 5 0 0 2 8 1 , , , , , , , , , , , , , , , , 2 8 3 6 5 8 0 5 7 9 3 3 0 1 6 9 3 4 7 7 8 2 3 3 8 0 9 3 9 4 4 0 4 9 3 % 8 4 4 2 6 5 2 8 0 2 7 2 5 9 6 9 3 1, 2 7 2 6 1 1 1 7 5 2 2 2 2 8 0 1 1 4 4 2 1 3 4 0 2 9 2 0 9 1 4 0 1 , , , , , , , , , , , , , , , , 8 4 1 6 4 0 7 4 4 0 2 6 5 9 9 9 3 6 2 4 8 0 3 1 6 9 1 9 6 1 1 6 5 6 3 0 1 9 5 3 7 8 8 6 6 4 7 3 6 4 3 3 2 3 6 6 4 5 Lia B b o i r li r t o ie w s i n fo g r s b f o ro r m ro w Fe ed d e m ra o l n R e e y s 5 erve Banks 283,97 3 9 5 273,186 0 282,7 8 7 6 4 0 278,849 0 281,3 7 1 0 9 7 277,492 0 281,962 0 292,386 0 288,465 0 6 6 6 7 T O r t e h a e s r u l r i y a b t i a l x it i a es n d f o l r o a b n o r n ro ot w es e d money® 27 4 9 , , 4 46 7 7 6 26 6 6 , , 4 7 6 2 1 5 26 1 4 7 , , 1 7 2 8 6 9 26 1 6 2 , , 1 6 9 5 1 8 26 1 8 1 , , 9 6 8 2 8 4 274 2 , , 6 8 6 3 2 0 27 4 7 , , 3 5 7 9 0 3 2 2 6 8 3 , , 8 5 7 0 7 8 26 2 6 2 , ,3 1 5 0 6 8 68 Other liabilities (including subordinated notes and debentures) 105,653 106,525 104,691 103,273 112,270 103,767 103,842 101,553 103,728 69 Total liabilities 1,504,958 1,481,883 1,492,875 1,473,251 1,496,290 1,499,455 1,511,850 1,489,271 1,493,708 70 Residual (total assets less total liabilities)7 142,635 142,849 142,942 143,630 145,138 145,341 146,531 146,961 146,241 7 7 7 7 7 7 7 1 2 3 5 6 4 7 T T L N F M o o i o E e m O C r t t a M a e e o n t O l d i h s m g u d l e n o e s r m e o a p b t e n l o o r d r s a s c r i n o a i e t a c u s n l l h a d t i r t a n i e c l n g d e r a d h e a m t i d s i n e n i o t s t o s d u t , e i u n a t x g s u f ts t t r f t r e o i i i l o o n s a i f n a d s l , s t e $ e d a 1 s a d 9 0 b t j 0 o r u , o 0 s U a 0 t d e . 0 S d . o , r p r l m e u s s o i r d s e e e n cu ts ri '" ti . e .. s 1,3 1 - 2 4 1 8 3 7 3 , , , , 8 4 4 9 8 4 7 7 0 4 2 9 2 5 0 7 6 7 8 9 3 1 - ,3 1 1 2 4 1 0 3 3 2 , , , , 5 8 8 4 9 5 4 6 4 9 4 9 5 5 0 6 7 5 8 0 2 1,3 1 - 2 4 1 8 3 9 1 , , , , 9 8 4 6 9 8 4 4 5 4 8 7 5 % 5 0 5 3 3 1 1 - ,3 1 1 2 3 1 0 3 8 0 , , , , 0 1 9 4 1 8 4 7 5 4 6 2 9 4 0 0 4 7 3 3 9 1 - ,3 1 1 2 3 0 2 3 8 4 , , , , 3 2 4 3 1 8 4 2 2 2 2 9 6 4 8 5 2 8 8 9 7 1 - ,3 1 1 2 4 0 3 3 8 8 , , , , 2 2 4 5 6 8 4 2 2 0 2 7 7 4 1 7 9 9 8 6 7 1 - ,3 1 1 2 5 0 6 3 0 8 , , , , 1 3 4 4 4 3 8 5 2 2 3 4 4 7 8 1 9 1 7 3 5 1 - ,3 1 1 2 4 0 2 3 6 9 , , , , 0 4 8 4 4 8 4 1 6 4 4 2 7 4 6 4 1 1 9 5 7 1,3 1 - 2 4 0 8 3 5 8 , , , , 9 3 4 0 0 8 4 9 3 8 2 3 7 4 5 3 7 8 3 2 3 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

A24 DomesticN onfinancialS tatistics • August 1993 1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1993 AAccccoouunntt Mar. 31r Apr. 7r Apr. 14r Apr. 21r Apr. 28r May 5 May 12 May 19 May 26 1 Cash and balances due from depository institutions 19,477 17,756 16,838 17,317 18,063 17,361 17,608 16,845 17,458 2 U.S. Treasury and government agency securities 31,493 30,341 29,275 29,146 29,553 30,723 29,924 29,750 3300,,009999 3 Other securities 8,420 8,795 9,017 8,976 8,855 8,966 9,050 9,026 8,781 4 Federal funds sold 23,044 18,667 21,235 19,330 19,858 18,481 20,572 21,077 22,557 5 To commercial banks in the United States ... 8,710 4,110 5,984 3,445 4,293 3,872 5,889 5,341 5,585 6 Toothers2 14,334 14,556 15,251 15,884 15,565 14,609 14,683 15,736 16,973 7 Other loans and leases, gross 160,773 158,669 158,915 159,902 160,113 158,158 159,557 160,264 159,500 8 Commercial and industrial 95,548 95,831 95,741 95,939 95,654 95,464 95,866 96,609 96,388 9 Bankers acceptances and commercial paper 2,538 2,684 2,466 2,444 2,494 2,549 2,474 2,612 2,594 10 All other 93,010 93,147 93,275 93,494 93,160 92,915 93,392 93,997 93,794 11 U.S. addressees 89,730 89,807 90,019 90,188 89,849 89,679 90,051 90,569 90,516 1? Non-U.S. addressees 3,280 3,340 3,256 3,306 3,311 3,236 3,342 3,428 3,278 n Loans secured by real estate 32,843 32,217 32,226 32,277 32,399 32,202 32,091 32,043 32,057 14 To financial institutions 25,568 24,803 24,226 25,468 25,512 23,865 24,943 25,130 25,083 15 Commercial banks in the United States.. 4,935 4,973 4,914 5,056 4,981 5,360 5,392 5,268 5,453 16 Banks in foreign countries 1,871 1,802 1,822 1,659 1,680 1,732 1,722 1,740 1,810 17 Nonbank financial institutions 18,763 18,029 17,490 18,754 18,851 16,773 17,828 18,122 17,821 18 For purchasing and carrying securities 3,809 2,718 3,513 3,008 3,264 3,375 3,533 3,491 2,965 19 To foreign governments and official institutions 368 364 406 388 338822 389 372 340 337755 70 All other 2,637 2,735 2,803 2,821 2,902 2,862 2,753 2,651 2,630 21 Other assets (claims on nonrelated parties) .. 33,860 31,571 32,088 31,875 32,012 33,308 31,964 31,769 32,125 22 Total assets3 306,177 297,943 296,670 298,250 296,965 297,935 297,323 301,790 301,975 73 Deposits or credit balances due to other than directly related institutions 102,844 97,042 97,249 99,311 101,357 101,440 101,271 101,527 102,538 74 Demand deposits 4,934 4,137 4,099 3,963 5,008 3,961 4,396 3,829 4,130 25 Individuals, partnerships, and corporations 3,413 2,945 3,182 3,052 3,533 3,134 3,111 3,056 3,332 ?6 Other 1,521 1,192 918 911 1,476 827 1,285 774 798 27 Nontransaction accounts 97,910 92,905 93,150 95,348 96,349 97,479 96,875 97,698 98,408 78 Individuals, partnerships, and corporations 67,973 65,569 65,287 67,111 67,247 68,601 68,173 68,175 68,352 79 Other 29,937 27,336 27,863 28,238 29,102 28,878 28,702 29,523 30,057 30 Borrowings from other than directly related institutions 86,400 85,897 81,727 81,999 79,666 85,582 81,673 86,786 8822,,664444 31 Federal funds purchased 45,283 49,938 45,816 42,625 39,287 44,173 39,990 42,050 38,777 V, From commercial banks in the United States 18,704 17,405 13,751 12,841 12,057 13,997 11,530 13,393 13,528 33 From others 26,579 32,533 32,065 29,783 27,230 30,176 28,460 28,657 25,249 34 Other liabilities for borrowed money 41,117 35,959 35,912 39,375 40,379 41,409 41,683 44,735 43,867 35 To commercial banks in the United States 8,886 7,924 7,077 7,018 7,584 7,363 6,871 7,533 8,064 36 To others 32,231 28,035 28,835 32,357 32,795 34,046 34,812 37,202 35,803 37 Other liabilities to nonrelated parties 32,619 30,456 30,249 30,529 30,624 30,691 31,295 30,095 30,533 38 Total liabilities6 306,177 297,943 296,670 298,250 296,965 297,935 297,323 301,790 301,975 MEMO 39 Total loans (gross) and securities, adjusted .. 210,085 207,388 207,543 208,852 209,105 207,096 207,822 209,507 209,900 40 Net due to related institutions abroad 55,203 52,404 58,141 54,706 56,808 49,283 54,437 50,323 54,806 1. Includes securities purchased under agreements to resell. 5. Includes securities sold under agreements to repurchase. 2. Includes transactions with nonbank brokers and dealers in securities. 6. Includes net to related institutions abroad for U.S. branches and agencies of 3. Includes net due from related institutions abroad for U.S. branches and foreign banks having a net "due to" position. agencies of foreign banks having a net "due from" position. 7. Excludes loans to and federal funds transactions with commercial banks in 4. Includes other transaction deposits. the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 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 Nov. Dec. Jan.r Feb.r Mar.r Apr. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 458,464 525,831 562,656 531,724 549,433 558,414 549,433 540,191 527,529 534,116 535,971 FFiinnaanncciiaall ccoommppaanniieess11 DDeeaalleerr--ppllaacceedd ppaappeerr 22 TToottaall 159,777 183,622 214,706 213,823 228,260 230,966 228,260 213,049 202,126 219,076 210,317 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 ppaappeerr 44 TToottaall 194,931 210,930 200,036 183,379 172,813 179,279 172,813 181,264 177,370 171,959 175,384 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 103,756 131,279 147,914 134,522 148,360 148,169 148,360 145,878 148,033 143,081 150,270 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 66,631 62,972 54,771 43,770 38,200r 37,664r 38,W 36,001 35,221 34,939 35,317 Holder 8 Accepting banks 9,086 9,433 9,017 11,017 10,561r 10,314r 10,561r 9,121 9,878 11,036 10,582 9 Own bills 8,022 8,510 7,930 9,347 9,103r 9,169r 9,103r 7,927 8,361 9,162 9,232 10 Bills bought from other banks 1,064 924 1,087 1,670 1,458 1,145 1,458 1,193 1,516 1,873 1,350 Federal Reserve Banks 11 Foreign correspondents 1,493 1,066 918 1,739 1,276 1,289 1,276 1,317 1,169 1,108 909 12 Others 56,052 52,473 44,836 31,014 26,364 26,061 26,364 25,563 24,175 22,795 23,826 Basis n Imports into United States 14,984 15,651 13,095 12,843 12,212r 12,135r 12,212r 11,148 11,126 11,129 10,746 14 Exports from United States 14,410 13,683 12,703 10,351 8,096 7,673 8,0% 7,740 7,547 7,304 7,629 15 All other 37,237 33,638 28,973 20,577 17,893r 17,856r 17,893r 17,112 16,548 16,506 16,942 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 rate 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- - Jan. . 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. May June 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

A26 Domestic Nonfinancial Statistics • August 1993 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 1993 1993, week ending IItteemm 11999900 11999911 11999922 Feb. Mar. Apr. May Apr. 30 May 7 May 14 May 21 May 28 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 r 8.10 5.69 3.52 3.03 3.07 2.96 3.00 2.87 2.98 2.90 3.01 3.07 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 3.00 Commercial paper3,5,6 3 1-month 8.15 5.89 3.71 3.14 3.15 3.13 3.11 3.10 3.08 3.09 3.11 33..1155 4 3-month 8.06 5.87 3.75 3.18 3.17 3.14 3.14 3.11 3.10 3.11 3.15 3.19 5 6-month 7.95 5.85 3.80 3.27 3.24 3.19 3.20 3.16 3.13 3.14 3.22 3.30 Finance paper, directly placed1,5,1 6 1-month 8.00 5.73 3.62 3.18 3.15 3.06 3.05 3.03 3.02 3.03 3.05 3.09 7 3-month 7.87 5.71 3.65 3.27 3.17 3.06 3.07 3.04 3.03 3.05 3.08 3.13 8 6-month 7.53 5.60 3.63 3.21 3.14 3.07 3.07 3.05 3.04 3.05 3.07 3.13 Bankers acceptances3,5,8 9 3-month 7.93 5.70 3.62 3.06 3.07 3.05 3.06 3.04 3.03 3.04 3.07 3.12 10 6-month 7.80 5.67 3.67 3.15 3.14 3.10 3.13 3.09 3.07 3.08 3.15 3.23 Certificates of deposit, secondary marker• 11 1-month 8.15 5.82 3.64 3.08 3.10 3.08 3.07 3.06 3.04 3.06 3.08 3.10 12 3-month 8.15 5.83 3.68 3.12 3.11 3.09 3.10 3.08 3.06 3.07 3.12 3.16 13 6-month 8.17 5.91 3.76 3.22 3.20 3.16 3.20 3.14 3.12 3.14 3.23 3.29 14 Eurodollar deposits, 3-month3,10 8.16 5.86 3.70 3.12 3.11 3.10 3.12 3.06 3.06 3.08 3.13 3.20 U.S. Treasury bills Secondary market • 15 3-month 7.50 5.38 3.43 2.93 2.95 2.87 2.96 2.91 2.87 2.91 2.99 3.06 16 6-month 7.46 5.44 3.54 3.07 3.05 2.97 3.07 2.98 2.97 3.01 3.09 3.20 17 1-year 7.35 5.52 3.71 3.25 3.20 3.11 3.23 3.12 3.11 3.14 3.26 3.39 Auction average ' ' 18 3-month 7.51 5.42 3.45 2.95 2.97 2.89 2.% 2.88 2.88 2.89 3.00 3.06 19 6-month 7.47 5.49 3.57 3.08 3.08 3.00 3.07 2.95 2.98 2.99 3.10 3.19 20 1-year 7.36 5.54 3.75 3.32 3.09 3.24 3.13 n.a. 3.13 n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 7,1 1-year 7.89 5.86 3.89 3.39 3.33 3.24 3.36 3.25 3.23 3.27 3.40 3.55 22 2-year 8.16 6.49 4.77 4.10 3.95 3.84 3.98 3.83 3.78 3.86 4.07 4.21 23 3-year 8.26 6.82 5.30 4.58 4.40 4.30 4.40 4.30 4.24 4.30 4.48 4.60 74 5-year 8.37 7.37 6.19 5.43 5.19 5.13 5.20 5.14 5.05 5.10 5.28 5.36 25 7-year 8.52 7.68 6.63 5.87 5.66 5.59 5.66 5.60 5.53 5.58 5.74 5.78 26 10-year 8.55 7.86 7.01 6.26 5.98 5.97 6.04 6.01 5.92 5.96 6.12 6.14 27 30-year 8.61 8.14 7.67 7.09 6.82 6.85 6.92 6.89 6.83 6.88 7.00 6.97 Composite 28 More than 10 years (long-term) 8.74 8.16 7.52 6.89 6.65 6.64 6.68 6.66 6.58 6.62 6.76 6.75 STATE AND LOCAL NOTES AND BONDS Moody's series13 29 6.96 6.56 6.09 5.61 5.42 5.47 n.a. 5.38 5.35 5.42 5.45 5.66 30 Baa 7.29 6.99 6.48 5.98 5.81 5.88 n.a. 5.79 5.76 5.82 5.86 6.09 31 Bond Buyer series 7.27 6.92 6.44 5.87 5.64 5.76 5.73 5.75 5.71 5.69 5.77 5.73 CORPORATE BONDS 32 Seasoned issues, all industries15 9.77 9.23 8.55 8.01 7.83 7.76 7.78 7.74 7.71 7.75 7.84 7.82 Rating group 33 9.32 8.77 8.14 7.71 7.58 7.46 7.43 7.40 7.37 7.41 7.48 7.46 34 Aa 9.56 9.05 8.46 7.90 7.72 7.62 7.61 7.59 7.55 7.59 7.67 7.64 35 A 9.82 9.30 8.62 8.03 7.86 7.80 7.85 7.80 7.77 7.82 7.91 7.89 36 Baa 10.36 9.80 8.98 8.39 8.15 8.14 8.21 8.15 8.13 8.18 8.28 8.27 37 A-rated, recently offered utility bonds16 10.01 9.32 8.52 7.80 7.61 7.66 7.75 7.76 7.67 7.74 7.84 7.77 MEMO Dividend-price ratio 38 Preferred stocks 8.% 8.17 7.46 7.37 6.70 6.69 6.65 6.67 6.61 6.64 6.78 6.74 39 Common stocks 3.61 3.25 2.99 2.81 2.76 2.82 2.77 2.86 2.82 2.82 2.80 2.77 1. The daily effective federal funds rate is a weighted average of rates on 12. Yields on actively traded issues adjusted to constant maturities. Source: trades through New York brokers. U.S. Treasury. 2. Weekly figures are averages of seven calendar days ending on Wednesday 13. General obligations based on Thursday figures; Moody's Investors Service. of the current week; monthly figures include each calendar day in the month. 14. General obligations only, with twenty years to maturity, issued by twenty 3. Annualized using a 360-day year or bank interest. state and local governmental units of mixed quality. Based on figures for 4. Rate for the Federal Reserve Bank of New York. Thursday. 5. Quoted on a discount basis. 15. Daily figures from Moody's Investors Service. Based on yields to maturity 6. An average of offering rates on commercial paper placed by several leading on selected long-term bonds. dealers for firms whose bond rating is AA or the equivalent. 16. Compilation of the Federal Reserve. This series is an estimate of the yield 7. An average of offering rates on paper directly placed by finance companies. on recently offered, A-rated utility bonds with a thirty-year maturity and five 8. Representative closing yields for acceptances of the highest-rated money years of call protection. Weekly data are based on Friday quotations. center banks. 17. Standard and Poor's corporate series. Preferred stock ratio based on a 9. An average of dealer offering rates on nationally traded certificates of sample of ten issues: four public utilities, four industrials, one financial, and one deposit. transportation. Common stock ratios on the 500 stocks in the price index. 10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. indication purposes only. For ordering address, see inside front cover. 11. Auction date for daily data; weekly and monthly averages computed on an issue-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.36 STOCK MARKET Selected Statistics 1992 1993 IInnddiiccaattoorr 11999900 11999911 11999922 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 183.66 206.35 229.00 230.13 226.97 232.84 239.47 239.75 243.41 248.12 244.72 246.02 2 Industrial 226.06 258.16 284.26 285.76 279.70 287.80 290.77 292.11 294.40 298.75 292.19 297.83 3 Transportation 158.80 173.97 201.02 191.61 192.30 204.63 212.35 221.00 226.96 229.42 237.97 237.80 4 Utility 90.72 92.64 99.48 102.26 101.62 101.13 103.85 105.52 109.45 112.53 113.78 111.21 5 Finance - 133.21 150.84 179.29 178.27 181.36 189.27 196.87 203.38 209.93 217.01 216.02 209.40 6 Standard & Poor's Corporation (1941-43 = 10)' 335.01 376.20 415.75 418.48 412.50 422.84 435.64 435.40 441.76 450.15 443.08 445.25 7 American Stock Exchange (Aug. 31, 1973 = 50? 338.32 360.32 391.28 382.67 371.27 387.75 392.69 402.75 409.39 418.56 418.54 429.72 Volume of trading (thousands of shares) 8 New York Stock Exchange 156,359 179,411 202,558 191,774 204,787 208,221 222,736 266,011 288,540 251,170 279,778 255,843 9 American Stock Exchange 13,155 12,486 14,171 11,198 11,966 14,925 16,523 17,184 18,154 16,150 15,521 20,433 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 28,210 36,660 43,990 41,250 41,590 43,630 43,990 44,020 44,290 45,160 47,420 48,630 Free credit balances at brokers4 11 Margin accounts 8,050 8,290 8,970 8,060 8,355 8,500 8,970 8,980 9,790 9,650 9,805 9,560 12 Cash accounts 19,285 19,255 22,510 19,650 18,700 19,310 22,510 20,360 22,190 21,395 21,450 21,610 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 1133 MMaarrggiinn ssttoocckkss 70 80 65 55 65 50 1144 CCoonnvveerrttiibbllee bboonnddss 50 60 50 50 50 50 1155 SShhoorrtt ssaalleess 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance on securities other than options are the difference between the market value (100 companies. With this change the index includes 400 industrial stocks (formerly percent) and the maximum loan value of collateral as prescribed by the Board. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, financial. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively 1971. cutting previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in 3. Since July 1983, under the revised Regulation T, margin credit at broker- Regulation T the initial margin required for writing options on securities, setting dealers has included credit extended against stocks, convertible bonds, stocks it at 30 percent of the current market value of the stock underlying the option. On acquired through the exercise of subscription rights, corporate bonds, and Sept. 30,1985, the Board changed the required initial margin, allowing it to be the government securities. Separate reporting of data for margin stocks, convertible same as the option maintenance margin required by the appropriate exchange or bonds, and subscription issues was discontinued in April 1984. self-regulatory organization; such maintenance margin rules must be approved by 4. Free credit balances are amounts in accounts with no unfulfilled commit- the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC ments to brokers and are subject to withdrawal by customers on demand. approved new maintenance margin rules, permitting margins to be the price of the 5. New series since June 1984. option plus 15 percent of the market value of the stock underlying the option. 6. These requirements, stated in regulations adopted by the Board of Gover- Effective June 8, 1988, margins were set to be the price of the option plus 20 nors pursuant to the Securities Exchange Act of 1934, limit the amount of credit percent of the market value of the stock underlying the option (or 15 percent in the that can be used to purchase and carry "margin securities" (as defined in the case of stock-index options). regulations) when such credit is collateralized by securities. Margin requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 DomesticN onfinancialS tatistics • August 1993 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities1 Millions of dollars, end of period 1992 1993 AAccccoouunntt 11999900 11999911 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. SAIF-insured institutions 1 Assets 1,084,821 919,979 861,517 856,390 856,165 847,235 846,730 840,605 832,039 2 Mortgages 663333,,338855 551,322 516,654 512,264 512,077 550088,,881155 550022,,886633 496,974 449900,,555588 3 Mortgage-backed securities 155,228 129,461 123,282 122,385 120,438 119,715 120,715 120,292 112222,,117711 4 Contra-assets to mortgage assets . 16,897 12,307 11,282 11,044 11,164 11,073 11,207 10,509 12,742 5 Commercial loans 24,125 17,139 14,020 13,929 13,525 13,419 13,630 13,180 8,109 6 Consumer loans 48,753 41,775 37,403 37,230 37,123 36,732 35,938 36,019 363,562 7 Contra-assets to nonmortgage loans .. 1,939 1,239 944 910 932 982 931 845 1,083 n.a. n.a. n.a. 8 Cash and investment securities 146,644 120,077 119,539 120,220 124,140 120,684 126,719 127,893 132,210 9 Other 95,522 73,751 62,844 62,317 60,958 59,925 59,002 57,600 41,695 10 Liabilities and net worth . 1,084,821 919,979 861,517 856,390 856,165 847,235 846,730 840,605 832,039 11 Deposits 835,496 731,937 682,535 676,141 672,354 667,027 660,906 654,047 650,010 12 Borrowed money 197,353 121,923 108,943 109,036 110,109 110,022 114,123 114,354 114,980 13 FHLBB 100,391 65,842 62,760 62,359 62,225 64,105 63,065 64,742 64,615 14 Other 96,962 56,081 46,183 46,677 47,884 45,917 51,058 49,612 50,365 15 Other 21,332 17,560 17,740 18,570 20,523 18,017 19,853 20,406 16,078 16 Net worth 30,640 48,559 52,299 52,642 53,178 52,169 51,846 51,798 50,867 1. Beginning December 1992, data are available on a quarterly basis and are no 3. Includes holding of stock in Federal Home Loan Bank and finance leases longer available monthly. plus interest. 2. 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 loans in process, unearned discounts and deferred loan fees, valuation allowances the December 1991 issue, data for life insurance companies are shown in a special for mortgages "held for sale," and specific reserves and other valuation allow- table of quarterly data. ances. Contra-assets to nonmortgage loans include loans in process, unearned SOURCE. Office of Thrift Supevision (OTS), insured by the Savings Association discounts and deferred loan fees, and specific reserves and valuation allowances. Insurance Fund (SAIF) and regulated by the OTS. 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1992 1993 11999900 11999911 11999922 Dec. Jan. Feb. Mar. Apr. May U.S. budget1 1 Receipts, total 1,031,308 1,054,265 1,090,513 113,690 112,718 66,138 83,453 132,122 70,758 2 On-budget 749,654 760,382 788,087 89,594 90,129 41,038 57,259 96,413 44,636 3 Off-budget 281,654 293,883 302,426 24,096 22,589 25,100 26,194 35,709 26,122 4 Outlays, total 1,251,766 1,323,757 1,380,657 152,637 82,903 113,732 128,030 124,034 107,716 5 On-budget 1,026,701 1,082,072 1,128,318 116,575 84,928 89,276 103,793 101,861 83,320 6 Off-budget 225,064 241,685 252,339 36,061 -2,025 24,456 24,237 2222,,117744 24,395 7 Surplus or deficit (-), total -220,458 -269,492 -290,144 -38,946 29,815 -47,594 -44,577r 88,,008888 -36,957 8 On-budget -277,047 -321,690 -340,231 -26,981 5,201 -48,238 -46,534 -5,448 -38,684 9 Off-budget 56,590 52,198 50,087 -11,965 24,614 644 1,957 13,535 1,727 Source of financing (total) 10 Borrowing from the public 220,101 276,802 310,918 21,078 -8,355 30,689 37,727 5,464 30,832 11 Operating cash (decrease, or increase (-)) ... 818 -1,329 -17,305 -3,175 -16,436 27,227 -2,452 -18,945 20,1% 12 Other7 -461 -5,981 -3,469 21,043 -5,024 -10,322 9,302 5,393 -14,071 MEMO 13 Treasury operating balance (level, end of period) 40,155 41,484 58,789 29,890 46,326 19,099 21,551 40,496 20,300 14 Federal Reserve Banks 7,638 7,928 24,586 7,492 9,572 5,350 6,752 7,273 5,787 15 Tax and loan accounts 32,517 33,556 34,203 22,399 36,754 13,749 14,799 33,233 14,514 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

Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year Source or type 1992 1993 1991 1992 H2 H2 Apr. May RECEIPTS 1 All sources 1,054,265 1,090,513 540,504 519,181 560,350 540,506 83,453 132,122 70,758 2 Individual income taxes, net 467,827 476,049r 232,389 234,939 236,586r 246,961 27,935 56,137 17,919 4 6 3 5 R P W N r e o e i f t n s u h i w h n d i e d e t l s n h d t h i e al l d E lection Campaign Fund . 4 1 7 0 4 9 4 2 , , , 1 0 6 5 5 9 3 2 0 3 2 4 1 0 8 4 8 1 9 , , , 3 7 4 5 6 3 3 2 0 3 0 r r 1 1 7 0 9 0 9 3 , , , 4 4 4 8 0 4 3 7 5 0 1 21 3 8 0 3 , , , 9 5 2 1 5 9 0 2 6 1 1 1 7 9 1 3 8 0 , , , 2 8 9 9 2 6 9 0 8 7 5 r r 21 3 8 5 9 , , , 5 3 0 9 7 1 1 1 1 1 0 4 1 0 5 7 , , , 0 2 3 0 5 3 6 3 0 6 4 3 2 4 1 2 , , , 3 6 7 1 9 5 5 1 5 6 3 1 1 2 5 , , , 2 6 2 6 3 8 4 1 5 1 7 8 Co G R rp e ro o fu r ss a n t d r i s o e n c e i i n p c ts o me taxes 11 1 3 5 , , 5 5 9 1 9 3 \ 1 Y 7, ! 6 , 7 9 9r 49 5 7 8 , , 9 9 0 0 4 3 5 8 4 , , 6 0 4 1 9 6 6 9 1 , , 4 6 0 8 2 2 r 5 7 8 , , 2 0 1 2 9 2 1 1 4, , 6 9 4 2 4 0 19 1 , , 2 4 7 7 2 7 3,0 6 2 4 2 6 9 Social insurance taxes and contributions, net 396,011 413,689 214,303 186,839 224,569 192,599 33,652 49,176 42,277 10 Employment taxes and contributions 370,526 385,491 199,727 175,802 208,110 180,758 32,980 45,164 33,062 11 Self-employment taxes and contributions 25,457 24,421 22,150 3,306 20,433 3,988 873 12,183 1,620 12 Unemployment insurance 20,922 23,410 12,296 8,721 14,070 9,397 240 3,581 8,849 13 Other net receipts 4,563 4,788 2,279 2,317 2,389 2,445 432 431 365 14 Excise taxes 42,430 45,570 20,703 24,429 22,388r 23,456 4,514 4,168 3,502 15 Customs deposits 15,921 17,359 7,488 8,694 8,146 9,497 1,598 1,544 1,419 16 Estate and gift taxes 11,138 11,143 5,631 5,507 5,700r 5,733 977 1,898 1,009 17 Miscellaneous receipts5 22,852 26,522 8,991 13,406 10,695 11,472 2,051 1,404 2,257 OUTLAYS 18 All types 1,323,757 1,380,657 632,153 694,364 704,288 723,367 128,030 124,034 107,716 19 National defense 272,514 298,361 122,089 147,669 147,065r 155,501 25,511 27,192 20,460 2 2 2 2 2 0 1 2 4 3 G I A E N n n e g a t e n e r tu i r r e c g n r r u y a a a l l l t t i u r o s e r c n e s i a o e l n u a c r f c e f , e a s i s r p a s a n c d e , e n a v n i d r o t n ec m h e n n o t logy . 1 1 1 1 2 6 4 5 8 , , , , , 5 1 8 9 7 1 6 6 4 0 1 7 4 6 8 2 1 1 1 4 0 6 6 4 , , , , , 5 0 1 4 9 0 1 0 0 9 9 7 6 9 7 7 7 8 7 1 , , , , , 5 4 3 6 2 9 9 2 8 3 2 6 4 4 5 1 7 8 7 1 1 , , , , , 4 6 4 6 1 7 9 1 9 3 2 1 8 8 0 8 7 8 7 1 , , , , , 9 5 5 4 6 5 4 4 2 0 1 2 6 0 1 r r 1 9 8 3 8 1 , , , , , 9 5 1 8 6 1 2 0 8 1 1 1 9 7 1 4 1 1 1 , , , , 2 1 5 5 1 4 0 6 4 8 4 1 3 0 9 2 1 1 , , , 5 4 6 4 7 3 3 6 4 0 1 6 6 4 9 1 1 1 1 , , , , 4 3 4 0 7 5 8 1 7 3 3 2 0 1 9 25 Commerce and housing credit 75,639 9,753 17,992 36,534 15,615r -7,843 -1,368 -3,961 -1,896 26 Transportation 31,531 33,759 14,748 17,093 15,673r 18,477 3,383 2,591 2,398 27 Community and regional development .. 7,432 7,923 3,552 3,783 3,903 4,540 760 987 862 28 Education, training, employment, and social services 41,479 45,248 21,234 21,114 23,696r 20,922 4,607 3,695 3,433 29 Health 71,183 89,570 35,608 41,459 44,154r 47,223 8,379 8,883 7,758 30 Social security and medicare 373,495 406,569 190,247 193,098 205,500 232,109 37,235 37,236 35,020 31 Income security 171,618 197,867 88,778 87,693 104,616r 98,693 21,056 20,408 15,900 32 Veterans benefits and services 31,344 34,133 14,326 17,425 15,597 18,561 4,090 4,332 801 33 Administration of justice 12,295 14,450 6,187 6,574 7,435 7,283 1,270 1,581 1,199 3 3 3 4 5 6 G U N e n et n d e i i s n r t a t r l e i r b g e u o s t v t e 6 e d r n o m ff e s n e t t ting receipts7i - 1 3 1 9 9 1 5 , , , 3 0 3 5 1 5 6 2 8 - 1 3 1 9 9 2 9 , , , 2 9 4 8 2 3 0 9 9 -1 9 8 8 5 , , , 7 2 5 0 1 5 2 2 6 -2 9 0 6 9 , , , 4 7 1 3 9 4 6 4 9 - 1 1 0 8 5 0 , , , 2 0 1 2 5 5 9 0 4 r -2 9 0 8 8 , , , 9 1 5 1 3 4 4 8 9 - 1 2 6 1 , , , 9 4 0 8 1 4 7 5 0 - 1 2 6 , , 9 6 5 3 5 8 5 5 5 - 1 2 7 , , 5 8 4 7 8 2 9 6 0 1. Functional details do not sum to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. revisions to monthly totals have not been distributed among functions. Fjscal year 6. Includes interest received by trust funds. total for outlays does not correspond to calendar year data because revisions from 7. Consists of rents and royalties for the outer continental shelf and U.S. the Budget have not been fully distributed across months. government contributions for employee retirement. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 3. Old-age, disability, and hospital insurance. Receipts and Outlays of the U.S. Government, and the U.S. Office of Manage- 4. Federal employee retirement contributions and civil service retirement and ment and Budget, Budget of the U.S. Government, Fiscal Year 1994. disability ftind. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 DomesticN onfinancial Statistics • August 1993 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1991 1992 1993 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 3,492 3,563 3,683 3,820 3,897 4,001 4,083 4,196 4,250r 2 Public debt securities 3,465 3,538 3,665 3,802 3,881 3,985 4,065 4,177 4,231 3 Held by public 2,598 2,643 2,746 2,833 2,918 2,977 3,048 3,129 3,188r 4 Held by agencies 867 895 920 969 964 1,008 1,016 1,048 l,043r 5 Agency securities 27 25 18 19 16 16 18 19 20" 6 Held by public 26 25 18 19 16 16 18 19 20" 7 Held by agencies 0 0 0 0 0 0 0 0 0" 8 Debt subject to statutory limit 3,377 3,450 3,569 3,707 3,784 3,891 3,973 4,086 4,140 9 Public debt securities 3,377 3,450 3,569 3,706 3,783 3,890 3,972 4,085 4,139 10 Other debt1 0 0 0 0 0 0 0 0 0 MEMO 11 Statutory debt limit 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 1. Consists of guaranteed debt ofTreasury and other federal agencies, specified SOURCES. U.S. Treasury Department, Monthly Statement of the Public Debt of participation certificates, notes to international lending organizations, and District the United States and Treasury Bulletin. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 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 Nonmarketable1 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 issues2 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.. v 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 holder4 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 1,043.2 16 Federal Reserve Banks 228.4 259.8 281.8 302.5 276.9 296.4 302.5 305.2 17 Private investors 2,015.8 2,288.3 2,563.2 2,839.9 2,712.4 2,765.5 2,839.9 2,895.0 18 Commercial banks 164.9 171.5 233.4 293.4r 267.3 287.4r 293.4r 296.0 19 Money market funds 14.9 45.4 80.0 80.6 79.4 79.8 80.6 77.6 20 Insurance companies 125.1 142.0 168.7 190.3r 180.8 185.6r 190.3r 194.0 21 Other companies 93.4 108.9 150.8 192.5 175.0 180.8 192.5 199.3 22 State and local treasuries 487.5 490.4 520.3 534.8r 528.5 529.5r 534.8r 536.0 Individuals 23 Savings bonds 117.7 126.2 138.1 157.3 145.4 150.3 157.3 163.6 24 Other securities 98.7 107.6 125.8 131.9 129.7 130.9 131.9 134.1 25 Foreign and international5 392.9 421.7 455.0 512.5 492.9 499.0 512.5 528.4 26 Other miscellaneous investors 520.7 674.5 691.1 746.6r 713.5 722. lr 746.6r 766.0 1. Includes (not shown separately) securities issued to the Rural Electrification 5. Consists of investments of foreign balances and international accounts in the Administration, depository bonds, retirement plan bonds, and individual retire- United States. ment bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable series denominated in dollars, and series denominated in mutual savings banks, corporate pension trust funds, dealers and brokers, certain foreign currency held by foreigners. U.S. Treasury deposit accounts, and federally sponsored agencies. 3. Held almost entirely by U.S. Treasury and other federal agencies and trust SOURCES. U.S. Treasury Department, data by type of security, Monthly funds. Statement of the Public Debt of the United States; data by holder, the Treasury 4. Data for Federal Reserve Banks and U.S. government agencies and trust Bulletin. funds are actual holdings; data for other groups are Treasury estimates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1993, week ending Item Feb. Mar, Apr. Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28 May 5 May 12 May 19 May 26 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 44,475* 43,300 41,043r 36,263 46,812 42,055 36,580 39.664 38,6% 30,411 50,017 Coupon securities, by maturity 2 Less than 3.5 years 56,575 47,300 36,975r 43,291 34,141 35,705 30,816 45,077 42,379 48,407 61,051 3 3.5 to 7.5 years 48,2% 45,252 42,8I2r 42,606 37,288 49,562 37,940 47,458 40,316 41,351 47,856 4 7.5 to 15 years 28,512 23,269 19,229 17,455 18,214 17,864 20,333 21,071 17,817 28,140 21,645 5 15 years or more 21,502 17,592 16,%3r 13,979 18,751 17,133 16,422 16.665 14,160 16,146 19,793 Federal agency securities Debt, by maturity 6 Less than 3.5 years 6,719 5,790 5,715 6,718 4,704 5,447 6,188 6,392 6,033 4,867 7,242 7 3.5 to 7.5 years 881 788 640 503 520 729 706 598 657 702 665 8 7.5 years or more 1,194 1,125 578r 1,228 1,162 375 339 528 350 424 373 Mortgage-backed 9 Pass-throughs 22,571 14,705 17,293 9,461 15,789 25,851 16,051 13,271 12,820 24,851 20,592 10 All others 4,509 4,059 3,336 4,401 2,553 3,685 2,830 3,844 4,414 3,556 2,998 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 123,545 110,173 97,491r 97,905 92,876 100,757 88,099 108,652 %,439 103,168 123,857 Federal agency securities 12 Debt 1,970 1,771 1,155 1,832 1,530 1,120 907 1,068 1,137 1,089 876 13 Mortgage-backed 11,756 7,388 8,855 5,108 7,994 12,470 8,735 7,166 6,489 11,762 10,456 Customers 14 U.S. Treasury securities 75,814r 66,539 59,53 lr 55,689 62,330 61,561 53,992 61,284 56,928 61,288 76,504 Federal agency securities 15 Debt 6,825 5,931 5,778r 6,616 4,856 5,431 6,325 6,450 5,903 4,903 7,404 16 Mortgage-backed 15,324 11,378 11,775 8,754 10,349 17,066 10,146 9,949 10,745 16,646 13,134 FUTURES AND FORWARD TRANSACTIONS By type of deliverable security U.S. Treasury securities 17 Bills 2,679 2,205 2,378r 1,067 1,267 2,150 2,325 3,892 2,078 1,976 3,439 Coupon securities, by maturity 18 Less than 3.5 years 2,622 2,348 1,942 1,791 1,719 2,280 1,734 2,031 1,947 1,526 2,168 19 3.5 to 7.5 years 1,890 2,287 1,384 2,0% 1,250 1,241 1,265 1,674 1,646 1,326 1,483 20 7.5 to 15 years 3,847 3,542 2,377 2,937 2,238 3,126 1,663 2,463 2,420 3,608 2,844 21 15 years or more 11,748 11,335 9,025 7,764 9,300 9,611 8,061 9,178 8,8% 8,855 12,552 Federal agency securities Debt, by maturity 2 2 3 2 3 L . e 5 s s to th 7 a .5 n y 3 e .5 a rs y ears 1 7 3 2 0 1 9 0 2 3 1 1 2 0 8 2 1 6 0 3 5 24 2 2 8 5 9 7 8 2 7 5 2 2 % 73 23 6 6 7 1 9 0 4 0 3 3 2 2 0 24 7.5 years or more 44 32 33 39 11 41 41 48 7 22 17 Mortgage-backed 25 Pass-tljroughs 17,514 22,141 21,378 18,189 19,263 25,251 20,743 21,300 18,768 23,463 22,108 26 Others3 1,478 1,471 1,463 1,089 1,887 716 1,847 1,397 1,479 1,968 1,900 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,692 1,662 l,611r 1,400 1,593 1,849 1,661 1,484 1,257 1,312 1,248 28 3.5 to 7.5 years 443 431 564r 503 755 626 449 462 472 868 419 29 7.5 to 15 years 679 687 507r 413 427 557 541 564 357 390 473 30 15 years or more 1,286 972 l,084r 737 1,059 940 799 1,499 1,180 953 1,111 Federal agency, mortgagebacked securities 31 Pass-throughs 586 664 675 704 683 749 618 415 357 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 (IOs), 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

A32 Domestic Nonfinancial Statistics • August 1993 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1993 1993, week ending item Feb. Mar. Apr. Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28 May 5 May 12 May 19 Positions2 NET IMMEDIATE POSITIONS3 By type of security U.S. Treasury securities 1 Bills 7,553 13,550 18,483 20,480 21,070 21,266 17,886 15,059 13,757 4,818 8,062 Coupon securities, by maturity 2 Less than 3.5 years 800 1,628 2,928 3,798 2,930 2,429 --447788 5,944 6,038 1111,,221199 88,,000077 3 3.5 to 7.5 years -10,824 -14,104 -17,023 -15,290 -18,071 -15,721 -17,141 -17,266 -16,651 -17,854 -23,033 4 7.5 to 15 years -9,682 -10,240 -12,805 -11,174 -11,541 -13,929 -13,214 -12,886 -11,584 -6,990 -8,787 5 15 years or more 7,126 9,342 9,248 9,424 9,466 9,908 9,653 8,192 8,447 7,707 7,439 Federal agency securities Debt, by maturity 6 Less than 3.5 years 6,674 6,451 6,342 4,937 7,305 8,193 5,345 5,115 4,274 5,910 3,829 7 3.5 to 7.5 years 2,708 3,332 3,178 3,216 3,136 3,198 3,203 3,082 3,510 3,197 2,617 8 7.5 years or more 3,811 4,896 3,958 4,931 4,194 4,254 3,899 3,641 3,408 3,416 2,943 Mortgage-backed 9 Pass-throughs 34,699 33,009 34,056 21,988 35,026 39,434 36,431 28,627 22,530 40,102 29,843 10 All others 24,540 25,734 25,866 28,773 26,683 25,931 25,317 24,979 27,808 26,619 25,617 Other money market instruments 11 Certificates of deposit 3,571 3,212 3,203 3,719 2,438 3,506 3,310 3,538 3,280 2,699 3,594 12 Commercial paper 6,911 6,237 5,145 6,008 4,725 5,948 4,879 5,165 4,671 5,403 5,387 13 Bankers acceptances 990 1,139 972 1,208 1,197 1,130 941 733 574 739 921 FUTURES AND FORWARD POSITIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -5,805 -5,103 -7,951 -5,297 -6,419 -7,161 -7,785 -9,765 -10,315 -8,312 -2,732 Coupon securities, by maturity 15 Less than 3.5 years 839 -568 -1,433 -1,781 --11,,995588 -1,624 -1,592 -852 -409 -1,679 -1,376 16 3.5 to 7.5 years 2,513 4,333 4,857 5,392 5,070 3,982 5,100 5,498 4,086 4,763 5,267 17 7.5 to 15 years 1,851 2,954 4,385 5,250 4,761 3,744 4,208 4,689 4,861 3,877 5,681 18 15 years or more -3,781 -5,119 -5,103 -5,399 -4,601 -6,405 -5,231 -4,367 -4,433 -5,518 -4,244 Federal agency securities Debt, by maturity 19 Less than 3.5 years -50 -194 -285 -275 --4433 -6 --3355 -897 -844 --227722 18 20 3.5 to 7.5 years -12 -39 -50 -50 89 -17 -259 8 -128 -93 -71 21 7.5 years or more 22 33 -74 -44 -73 -70 -64 -101 -27 -100 -220 Mortgage-backed 22 Pass-throughs -14,374 -13,086 -12,900 -3,608r -16,638 -17,114 -14,919 -5,723 -3,124 -18,952 -6,724 23 All others 3,326 3,371 4,770 3,655 4,130 3,693 4,364 7,360 3,139 2,907 2,164 24 Certificates of deposit -117,589 -156,612 -160,960 -165,264 -171,999 -163,417 -150,788 -162,1% -144,995 -161,008 -161,550 Financing6 Reverse repurchase agreements 25 Overnight and continuing 230,919 233,038 223,214 219,779 237,057 225,016 217,913 214,686 216,856 228,208 235,710 26 Term 364,102 360,955 393,238 304,913 386,911 388,465 392,306 406,831 387,767 409,092 357,602 Repurchase agreements 27 Overnight and continuing 404,809 403,942 406,560 372,903 395,432 417,640 416,451 402,418 386,607 397,630 419,306 28 Term 351,505 349,516 369,281 290,358 371,382 361,406 368,604 380,581 352,304 387,153 333,158 Securities borrowed 29 Overnight and continuing 113,700 115,244 117,774 107,573 113,794 118,011 120,540 117,993 120,427 120,229 125,020 30 Term 52,467 40,753 44,365 37,719 41,060 42,219 44,619 49,794 43,553 43,315 41,154 Securities loaned 31 Overnight and continuing 3,898 3,504 4,762 3,206 3,771 5,409 4,569 5,380 4,484 4,668 5,358 32 Term 467 482 587 179 148 288 1,064 874 489 1,189 1,221 Collateralized loans 33 Overnight and continuing 16,403 14,209 14,434 12,959 12,738 13,6% 14,159 17,090 14,622 15,839 14,5% MEMO: Matched book7 Reverse repurchase agreements 34 Overnight and continuing 160,307r 156,399r 148,137r 141,932r 152,495 154,922 148,784 138,578 140,334 142,860 152,953 35 Term 318,532r 313,182r 341,856r 261,551r 336,996 334,621 341,050 356,218 336,744 356,067 303,795 Repurchase agreements 36 Overnight and continuing 219,777r 214,034r 204,658r 204,748r 199,655 204,619 208,893 203,931 210,027 213,256 210,595 37 Teim 269,264r 266,309r 283,791r 216,502r 289,674 279,808 282,535 288,502 265,052 288,478 242,717 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

Federal Finance A33 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1992 1993 AAggeennccyy 11998888 11998899 11999900 11999911 Nov. Dec. Jan. Feb. Mar. 1 Federal and federally sponsored agencies 381,498 411,805 434,668 442,772 481,050 483,970 487,331 494,739 494,656 2 Federal agencies 35,668 35,664 42,159 41,035 42,081 41,829 41,641 42,115 42,051 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 7,208 7,208 7,208 6,749 5 Federal Housing Administration 150 328 393 397 344 374 231 237 3 6 Government National Mortgage Association certificates of participation5 0 0 0 0 0 0 0 0 0 7 Postal Service6 6,142 6,445 6,948 8,421 10,660 10,660 10,660 10,660 10,440 8 Tennessee Valley Authority 18,335 17,899 23,435 22,401 23,372 23,580 23,535 24,003 24,5% 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 345,832 375,428 392,509 401,737 438,%9 442,141 445,690 452,624 452,605 11 Federal Home Loan Banks 135,836 136,108 117,895 107,543 114,364 114,733 113,253 113,347 115,272 12 Federal Home Loan Mortgage Corporation 22,797 26,148 30,941 30,262 30,914 29,631 34,479 44,490 41,183 N Federal National Mortgage Association 105,459 116,064 123,403 133,937 161,308 166,300 165,958 163,538 165,818 14 Farm Credit Banks8 53,127 54,864 53,590 52,199 52,728 51,910 52,264 51,502 51,630 15 Student Loan Marketing Association9 22,073 28,705 34,194 38,319 39,737 39,650 39,812 39,822 38,776 16 Financing Corporation10 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 Corporation12 0 4,522 23,055 29,9% 29,9% 29,9% 29,9% 29,9% 29,9% MEMO 19 Federal Financing Bank debt13 142,850 134,873 179,083 185,576 156,579 154,994 151,059 147,464 146,097 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 11,027 10,979 1111,,337700 99,,880033 77,,669922 77,,220022 77,,220022 77,,220022 66,,774433 71 Postal Service6 5,892 6,195 6,698 8,201 10,440 10,440 10,440 10,440 10,440 22 Student Loan Marketing Association 4,910 4,880 4,850 4,820 4,790 4,790 4,790 4,790 4,790 23 Tennessee Valley Authority 16,955 16,519 14,055 10,725 6,975 6,975 6,825 6,825 6,675 24 United States Railway Association 0 0 0 0 0 0 0 0 0 Other lending14 75 Farmers Home Administration 58,4% 53,311 52,324 48,534 42,979 42,979 42,979 4422,,997799 4422,,997799 26 Rural Electrification Administration 19,246 19,265 18,890 18,562 18,172 18,172 18,037 18,036 17,966 27 26,324 23,724 70,8% 84,931 65,531 64,436 60,786 57,192 56,504 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 Farmers 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

A34 Domestic NonfinancialS tatistics • August 1993 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 ss ee oo rr iissssuueerr,, 11999900 11999911 11999922 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 1 All issues, new and refunding1 120,339 154,402 215,191 21,092 14,133 19,577 17,981 17,793 27,471 18,661 25,822 By type of issue 2 General obligation 39,610 55,100 78,611 7,733 5,203 6,024 4,840 6,%3 8,254 8,272 9,452 3 Revenue 81,295 99,302 136,580 13,359 8,930 13,553 13,141 10,830 19,217 10,581 16,370 By type of issuer 4 State 15,149 24,939 25,295 2,742 1,688 2,339 1,339 3,485 2,139 1,463 2,910 5 Special district or statutory authority2 72,661 80,614 127,618 13,113 8,197 11,159 12,556 9,654 18,355 7,628 14,085 6 Municipality, county, or township 32,510 48,849 60,210 5,237 4,248 6,079 3,994 4,654 6,977 9,570 8,827 7 Issues for new capital 103,235 116,953 120,272 13,760 8,028 8,010 5,875 4,636 9,716 5,385 9,386 By use of proceeds 8 Education 17,042 21,121 22,071 2,083 1,800 1,658 1,033 1,264 1,482 833 1,5% 9 Transportation 11,650 13,395 17,334 1,364 531 831 829 131 2,111 699 813 10 Utilities and conservation 11,739 21,039 20,058 3,340 960 1,258 894 423 538 806 955 11 Social welfare 23,099 25,648 21,7% 2,365 1,070 1,121 777 618 1,556 942 1,756 12 Industrial aid 6,117 8,376 5,424 367 581 339 337 69 765 134 601 13 Other purposes 34,607 30,275 33,589 4,241 3,086 2,803 2,005 2,131 3,264 1,971 3,665 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 All issues1 340,049 465,483 n.a. 42,849 39,280 35,525 39,424 50,793 59,504r 55,745r 42,751 2 Bonds2 299,884 390,018 404,992 37,539 32,314 31,026 33,375 45,559 49,444" 46,907r 36,500 By type of offering 3 Public, domestic 188,848 287,125 377,453 36,185 30,249 28,774 31,835 41,675 47,165 41,699 33,000 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,%2 27,539 1,355 2,066 2,252 1,540 3,884 2,278" 5,208" 3,500 By industry group 6 Manufacturing 51,779 86,628 69,538 5,974 7,975 3,467 4,232 9,393 8,150" 8,067 8,201 7 Commercial and miscellaneous 40,733 36,666 30,049 2,374 2,813 2,3% 2,176 3,074 2,268 2,695 2,099 8 Transportation 12,776 13,598 6,497 677 290 0 611 316 248 1,067 100 9 Public utility 17,621 23,945 44,643 5,230 3,700 1,289 2,867 4,282 5,624 7,058 5,985 10 Communication 6,687 9,431 13,073 1,191 427 374 516 3,019 2,890 3,270 1,915 11 Real estate and financial 170,288 219,750 241,192 22,093 17,110 23,499 22,973 25,475 30,264 24,751" 18,200 12 Stocks2 40,165 75,467 n.a. 5,310 6,966 4,499 6,049 5,234 10,060 8,838 6,251 By type of offering 13 Public preferred n.a. 17,408 21,332 1,233 2,901 1,540 1,608 1,112 1,898 1,647 702 14 Common n.a. 47,860 57,099 4,077 4,065 2,958 4,441 4,122 8,161 7,191 5,549 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. 307 1,779 288 1,468 722 2,616 1,741 1,387 17 Commercial and miscellaneous 10,171 19,418 n.a. 602 940 1,366 2,226 1,688 2,021 2,488 1,564 18 Transportation 369 2,439 n.a. 59 53 304 118 65 64 336 250 19 Public utility 416 3,474 n.a. 595 359 150 92 310 350 743 412 20 Communication 3,822 475 n.a. 1,051 99 22 126 0 0 7 30 21 Real estate and financial 19,738 25,507 n.a. 2,695 3,735 2,369 2,019 2,438 5,009 3,522 2,579 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. and the Board of Governors of the investment companies other than closed-end, intracorporate transactions, equi- Federal Reserve System. ties sold abroad, and Yankee bonds. Stock data include ownership securities issued by limited partnerships. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Market and Corporate Finance A35 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets Millions of dollars 1992 1993 IItteemm11 11999911 11999922 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Sales of own shares2 463,645 647,055 50,039 52,214 52,019 70,618 71,607 60,676 69,080 66,766 2 Redemptions of own shares 342,547 447,140 37,862 37,134 34,126 51,993 46,545 39,684 47,414 46,518 3 Net sales3 121,098 199,915 12,177 15,080 17,893 18,625 25,062 20,992 21,666 20,248 4 Assets4 808,582 1,056,310 978,507 983,151 1,019,618 1,056,310 1,082,653 1,116,784 1,154,445 1,178,644 5 Cash5 60,292 73,999 76,498 75,808 80,247 73,999 76,764 79,763 81,536 86,205 6 Other 748,290 982,311 902,009 907,343 939,371 982,311 1,005,889 1,037,021 1,072,910 1,092,440 1. Data on sales and redemptions exclude money market mutual funds but 4. Market value at end of period, less current liabilities. include limited-maturity municipal bond funds. Data on assets exclude both 5. Includes all U.S. Treasury securities and other short-term debt securities. money market mutual funds and limited-maturity municipal bond funds. SOURCE. Investment Company Institute. Data based on reports of membership, 2. Includes reinvestment of dividends. Excludes reinvestment of capital gains which comprises substantially ail 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 1993 AAccccoouunntt 11999900 11999911 11999922 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qlr 1 Profits with inventory valuation and capital consumption adjustment 361.7 346.3 393.8 347.3 341.2 347.1 384.0 388.4 374.1 428.5 429.6 2 Profits before taxes 355.4 334.7 371.6 332.3 336.7 332.3 366.1 376.8 354.1 389.4 398.3 3 Profits tax liability 136.7 124.0 140.2 122.9 127.0 125.0 136.4 144.1 131.8 148.5 147.2 4 Profits after taxes 218.7 210.7 231.4 209.4 209.6 207.4 229.7 232.7 222.2 241.0 251.1 5 Dividends 149.3 146.5 149.3 146.2 145.1 143.9 143.6 146.6 151.1 155.9 160.2 6 Undistributed profits 69.4 64.2 82.1 63.2 64.5 63.4 86.2 86.1 71.1 85.0 90.9 7 Inventory valuation -14.2 3.1 -7.4 9.9 -4.8 .7 -5.4 -15.5 -9.7 1.0 -9.4 8 Capital consumption adjustment 20.5 8.4 29.5 5.1 9.3 14.1 23.3 27.0 29.7 38.1 40.6 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q31 1 Total nonfarm business 528.39 546.08 581.12 529.87 535.72 540.91 547.53 560.16 564.81 587.29 587.05 Manufacturing 2 Durable goods industries 77.64 73.41 77.49 76.40 74.19 74.26 71.84 73.34 79.32 78.06 75.01 3 Nondurable goods industries 105.17 100.50 100.74 102.66 99.79 97.52 100.39 104.28 95.85 104.73 102.17 Nonmanufacturing 4 Mining 10.02 8.90 9.51 9.99 8.87 9.18 9.09 8.44 8.84 10.10 10.15 Transportation 5 Railroad 5.95 6.77 6.71 5.44 6.65 6.50 6.87 7.08 6.01 6.68 6.87 6 Air 10.17 8.97 7.50 10.41 8.86 9.75 10.13 7.13 7.43 8.89 7.59 7 Other 6.54 7.04 9.12 6.45 6.37 7.27 7.69 6.84 9.06 8.42 9.09 Public utilities 8 Electric 43.76 48.05 52.75 44.75 46.06 48.45 47.73 49.95 49.87 54.11 53.66 9 Gas and other 22.82 23.91 22.99 22.67 22.75 24.19 23.92 24.78 23.44 23.58 22.54 10 Commercial and other2 246.32 268.54 294.32 251.11 262.17 263.80 269.86 278.32 284.99 292.72 299.96 1. Figures are amounts anticipated by business. insurance, personal and business services, and communication. 2. "Other" consists of construction, wholesale and retail trade, finance and SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 DomesticN onfinancialS tatistics • August 1993 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 Q1 Q2 Q3 Q4 ASSETS 1 Accounts receivable, gross2 492.3 480.6 482.1 488.9 485.2 480.6 475.6 476.7 473.9 482.1 2 Consumer 133.3 121.9 117.1 127.5 125.3 121.9 118.4 116.7 116.7 117.1 3 Business 293.6 292.9 296.5 295.7 293.7 292.9 290.8 293.2 288.5 296.5 4 Real estate 65.5 65.8 68.4 65.7 66.2 65.8 66.4 66.8 68.8 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 425.1 412.6 415.5 419.8 414.6 412.6 409.0 413.2 411.1 415.5 8 All other 113.9 149.0 150.6 122.8 136.4 149.0 145.5 139.4 146.5 150.6 9 Total assets 539.0 561.6 566.1 542.6 551.1 561.6 554.5 552.6 557.6 566.1 LIABILITIES AND CAPITAL 10 Bank loans 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 Long-term 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 539.6 561.2 566.1 542.1 550.5 561.2 554.6 552.7 559.4 566.1 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 COMPANIES Consumer, Real Estate, and Business Credit1 Millions of dollars, amounts outstanding, end of period 1992 1993 TTyyppee ooff ccrreeddiitt 11999900 11999911 11999922 Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted 11 TToottaall 522,474 519,910 534,845 530,702 534,845 529,256 531,398 532,144 532,425 22 CCoonnssuummeerr 160,468 154,822 157,707 156,736 157,707 156,551 157,733 156,277 156,363 33 RReeaall eessttaattee 65,147 65,383 68,011 68,581 68,011 68,942 70,016 68,726 69,791 44 BBuussiinneessss 296,858 299,705 309,127 305,385 309,127 303,763 303,649 307,141 306,272 Not seasonally adjusted 5 Total 525,888 523,192 538,158 530,367 538,158 528,847 528,490 532,298 534,286 6 Consumer 161,360 155,713 158,631 157,149 158,631 156,430 155,929 154,933 155,362 7 Motor vehicles 75,045 63,415 57,605 58,386 57,605 57,165 54,036 53,508 53,986 8 Other consumer 58,213 58,522 59,522 58,172 59,522 58,844 58,651 58,346 58,510 9 Securitized motor vehicles 19,837 23,166 29,775 28,964 29,775 28,894 32,860 32,915 32,443 10 Securitized other consumer 8,265 10,610 11,729 11,626 11,729 11,527 10,383 10,164 10,423 11 Real estate2 65,509 65,760 68,410 68,761 68,410 68,889 69,216 68,135 69,344 12 Business 299,019 301,719 311,118 304,457 311,118 303,527 303,345 309,230 309,579 13 Motor vehicles 92,125 90,613 87,456 85,621 87,456 86,491 86,412 91,647 91,695 14 Retail5.... 26,454 22,957 19,303 19,708 19,303 19,124 17,881 16,961 17,231 15 Wholesale6 33,573 31,216 29,962r 26,894 29,962 28,727 30,059 35,894 35,063 16 Leasing 32,098 36,440 38,191 39,020 38,191 38,640 38,472 38,792 39,400 17 Equipment 137,654 141,399 151,607 148,127 151,607 146,820 145,886 145,878 145,877 18 Retail..... 31,968 30,962 32,212 31,427 32,212 32,458 32,430 32,560 32,170 19 Wholesale6 11,101 9,671 8,669 8,824 8,669 8,582 8,318 8,656 8,642 20 Leasing » 94,585 100,766 110,726 107,877 110,726 105,780 105,138 104,662 105,066 21 Other business 63,773 60,900 57,464 56,926 57,464 55,760 55,962 56,153 56,144 22 Securitized business assets 5,467 8,807 14,590 13,782 14,590 14,457 15,085 15,552 15,863 23 Retail 667 576 1,118 607 1,118 1,036 973 904 1,434 24 Wholesale 3,281 5,285 8,756 8,813 8,756 8,582 9,408 9,824 9,756 25 Leasing 1,519 2,946 4,716 4,362 4,716 4,839 4,704 4,824 4,673 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 FR4A. SOuEtsRta 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

Real Estate A37 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1992 1993 IItteemm 11999900 11999911 11999922 Nov. Dec. Jan. Feb. Mar. Apr. May Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 153.2 155.0 158.1 165.4 154.0 158.6 159.7 156.2 150.9 153.1 2 Amount of loan (thousands of dollars) 112.4 114.0 118.1 117.3 117.7 119.5 114.5 121.5 115.0 118.8 3 Loan-price ratio (percent) 74.8 75.0 76.6 75.3 77.7 76.8 75.4 79.3 78.5 79.5 4 Maturity (years) . 27.3 26.8 25.6 24.9 26.1 25.7 23.8 26.9 24.9 26.9 5 Fees and charges (percent of loan amount) 1.93 1.71 1.60 1.54 1.31 1.49 1.43 1.50 1.23 1.43 Yield (percent per year) 6 Contract rate1 , 9.68 9.02 7.98 7.81 7.65 7.57 7.52 7.22 7.26 7.14 7 Effective rate • 10.01 9.30 8.25 8.07 7.88 7.82 7.77 7.46 7.46 7.37 8 Contract rate (HUD series)4 10.08 9.20 8.43 8.38 8.19 7.93 7.63 7.59 7.51 7.59 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 10.17 9.25 8.46 8.54 8.12 8.04 7.55 7.57 7.56 7.59 10 GNMA securities6 9.51 8.59 7.77 7.90 7.57 7.39 7.02 6.79 6.77 6.79 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 113,329 122,837 142,833 153,306 158,119 159,204 159,766 161,147 163,719 166,849 12 FHA/VA 21,028 21,702 22,168 22,372 22,593 22,640 22,573 22,700 22,682 22,691 13 Conventional 92,302 101,135 120,664 130,934 135,526 136,564 137,193 138,447 141,037 144,158 Mortgage transactions (during period) 14 Purchases 23,959 37,202 75,905 7,980 8,832 4,993 4,118 4,730 6,761 7,526 Mortgage commitments (during period) 15 Issued7 23,689 40,010 74,970 6,084 6,185 4,189 4,177 6,644 7,764 7,791 16 To sell8 5,270 7,608 10,493 237 1,811 1,159 221 0 112 30 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 20,419 24,131 29,959 32,703 33,665 32,370 32,454 35,421 38,361 39,960 18 FHA/VA 547 484 408 359 352 347 343 337 330 325 19 Conventional 19,871 23,283 29,552 32,343 33,313 32,023 32,112 35,084 38,031 39,635 Mortgage transactions (during period) 20 Purchases 75,517 97,727 191,125 19,607 20,792 15,512 12,063 12,587 15,885 18,842 21 Sales 73,817 92,478 179,208 19,154 19,602 16,536 12,105 10,286 13,807r 17,532 Mortgage commitments (during periodf 22 Contracted 102,401 114,031 261,637 29,717 32,453 17,591 23,366 21,103 20,731 18,908 1. Weighted averages based on sample surveys of mortgages originated by subsequent month. major institutional lender groups for purchase of newly built homes; compiled by 6. Average net yields to investors on fully modified pass-through securities the Federal Housing Finance Board in cooperation with the Federal Deposit backed by mortgages and guaranteed by the Government National Mortgage Insurance Corporation. Association (GNMA), assuming prepayment in twelve years on pools of thirty- 2. Includes all fees, commissions, discounts, and "points" paid (by the year mortgages insured by the Federal Housing Administration or guaranteed by borrower or the seller) to obtain a loan. the Department of Veterans Affairs. 3. Average effective interest rate on loans closed for purchase of newly built 7. Does not include standby commitments issued, but includes standby comhomes, assuming prepayment at the end of ten years. mitments converted. 4. Average contract rates on new commitments for conventional first mort- 8. Includes participation loans as well as whole loans. gages; from U.S. Department of Housing and Urban Development (HUD). Based 9. Includes conventional and government-underwritten loans. The Federal on transactions on the first day of the subsequent month. Home Loan Mortgage Corporation's mortgage commitments and mortgage trans- 5. Average gross yields on thirty-year, minimum-downpayment, first mort- actions include activity under mortgage securities swap programs, while the gages insured by the Federal Housing Administration (FHA) for immediate corresponding data for FNMA exclude swap activity. delivery in the private secondary market. Based on transactions on first day of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • August 1993 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1992 1993 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11998899 11999900 11999911 Q1 Q2 Q3 Q4 Qlp 1 All holders 3,537,301r 3,751,476r 3,890,830" 3,933,754r 3,967,017r 4,003,714" 4,035,405" 4,059,391 By type of property 7 One- to four-family residences 2,392,742r 2,597,175r 2,741,824r 2,788,987r 2,833,318r 2,887,877" 2,940,165" 2,976,623 3 Multifamily residences 307,045r 310,095r 307,944r 308,514r 304,104r 300,728" 293,376" 289,202 4 757,038r 765,458r 761,782r 753,578r 746,357r 731,407" 718,910" 710,208 5 Farm 80,476r 78,748r 79,281r 82,676r 83,237r 83,702" 82,953" 83,359 By type of holder 6 1,931,537 1,914,315 1,846,910 1,825,983 1,803,488 1,793,505 1,769,058" 1,750,365 7 Commercial banks 767,069 844,826 876,284 880,377 884,598 891,484 894,549" 888,395 8 One- to four-family 389,632 455,931 486,572 492,910 4%,518 506,658 511,976" 508,4% 9 Multifamily 38,876 37,015 37,424 37,710 38,314 38,985 38,011" 37,814 10 321,906 334,648 333,852 330,837 330,229 325,934 324,681" 322,166 11 16,656 17,231 18,436 18,919 19,538 19,906 19,882" 19,919 1? 910,254 801,628 705,367 682,338 659,624 648,178 627,972" 620,755 13 669,220 600,154 538,358 524,536 508,545 501,604 489,622" 486,126 14 Multifamily 106,014 91,806 79,881 77,166 74,788 73,723 69,791" 67,491 15 134,370 109,168 86,741 80,278 75,947 72,517 68,235" 66,812 16 650 500 388 358 345 334 324 327 17 Life insurance companies 254,214 267,861 265,258 263,269 259,266 253,843 246,537" 241,214 18 One- to four-family 12,231 13,005 11,547 11,214 10,676 10,451 10,158" 9,830 19 Multifamily 26,907 28,979 29,562 29,693 29,425 28,804 27,997" 27,454 70 205,472 215,121 214,105 212,865 210,139 205,709 199,943" 195,816 21 Farm 9,604 10,756 10,044 9,497 9,026 8,878 8,439" 8,114 22 Federal and related agencies 197,778 239,003 266,146r 278,3% 278,091r 277,485 285,%5" 288,199 23 Government National Mortgage Association 23 20 19 19 23 27 30" 45 24 One- to four-family 23 20 19 19 23 27 30" 37 25 Multifamily 0 0 0 0 0 0 0 88 76 Farmers Home Administration 41,176 41,439 41,713 41,791 41,628 41,671 41,695 4411,,772244 77 One- to four-family 18,422 18,527 18,496 18,488 17,718 17,292 16,912 16,418 78 Multifamily 9,054 9,640 10,141 10,270 10,356 10,468 10,575 10,679 79 Commercial 4,443 4,690 4,905 4,%1 4,998 5,072 5,158 5,226 30 Farm 9,257 8,582 8,171 8,072 8,557 8,839 9,050 9,402 31 Federal Housing and Veterans' Administrations 6,087 8,801 10,733 11,332 11,480 11,768 12,581 13,950 37 One- to four-family 2,875 3,593 4,036 4,254 4,403 4,531 5,153 6,159 33 Multifamily 3,212 5,208 6,697 7,078 7,077 7,236 7,428 7,791 34 Resolution Trust Corporation 0 32,600 45,822 49,345 44,624 37,099 32,045 27,331 35 One- to four-family 0 15,800 14,535 15,458 15,032 12,614 12,960" 11,375 36 Multifamily 0 8,064 15,018 16,266 13,316 11,130 9,621" 8,070 37 Commercial 0 8,736 16,269 17,621 16,276 13,356 9,464" 7,886 38 Farm 0 0 0 0 0 0 0 0 39 Federal National Mortgage Association 99,001 104,870 112,283 118,238 122,939" 126,476 137,584 141,192 40 One- to four-family 90,575 94,323 100,387 105,869 110,223 113,407 124,016 127,252 41 Multifamily 8,426 10,547 11,8% 12,369 12,716r 13,069 13,568 13,940 47 Federal Land Banks 29,640 29,416 28,767r 28,776 28,775 28,815 28,365" 28,536 43 One- to four-family 1,210 1,838 1,693 1,693 1,693 1,695 1,669" 1,679 44 28,430 27,577 27,074r 27,083 27,082 27,119 26,6%" 26,857 45 Federal Home Loan Mortgage Corporation 21,851 21,857 26,809 28,895 28,621 31,629 33,665 35,421 46 One- to four-family 18,248 19,185 24,125 26,182 26,001 29,039 31,032 32,831 47 Multifamily 3,603 2,672 2,684 2,713 2,620 2,591 2,633 2,589 48 Mortgage pools or trusts5 917,848r l,079,103r 1,250,666r 1,288,823 1,341,338 1,385,460 1,425,546 1,459,899 49 Government National Mortgage Association 368,367 403,613 425,295 421,977 422,922 422,255 419,516 421,514 50 358,142 391,505 415,767 412,574 413,828 413,063 410,675 412,798 51 Multifamily 10,225 12,108 9,528 9,404 9,094 9,192 8,841 8,716 57 Federal Home Loan Mortgage Corporation 272,870 316,359 359,163 367,878 382,797 391,762 407,514 420,932 53 266,060 308,369 351,906 360,887 376,177 385,400 401,525 415,279 54 6,810 7,990 7,257 6,991 6,620 6,362 5,989 5,654 55 Federal National Mortgage Association 228,232 299,833 371,984 389,853 413,226 429,935 444,979 457,316 56 One- to four-family 219,577 291,194 362,667 380,617 403,940 420,835 435,979 448,483 57 Multifamily 8,655 8,639 9,317 9,236 9,286 9,100 9,000 8,833 58 Farmers Home Administration 80 66 47 43 43 41 38 36 59 One- to four-family 21 17 11 10 9 9 88 7 60 Multifamily 0 0 0 0 0 0 00 0 61 Commercial 26 24 19 18 18 18 17 17 67 Farm 33 26 17 16 15 14 13 13 63 Private mortgage conduits 48,299r 59,232r 94,177r 109,071 122,350 141,468 153,499 160,100 64 One- to four-family 43,325r 53,335r 84,000"" 95,600 105,700 123,000 132,000 137,000 65 462 731 3,698 4,686 5,7% 5,7% 6,305 6,858 66 Commercial 4,512 5,166 6,479 8,784 10,855 12,673 15,194 16,242 67 Farm 0 0 0 0 0 0 0 0 68 490,138r 519,055r 527,108r 540,552r 544,100" 547,263" 554,836" 560,929 69 303,181r 330,378r 327,704r 338,676r 342,832" 348,252" 356,451" 362,853 70 84,800" 86,695r 84,842r 84,932" 84,698" 84,272" 83,617" 83,306 71 86,310" 87,905r 99,41 lr 98,213r 97,8%" %,129" %,218" %,043 72 Farm 15,846r 14,077r 15,150" 18,732r 18,675" 18,610" 18,549" 18,727 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. SOURCE. Line 64, Inside Mortgage Securities. 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

Consumer Installment Credit A39 1.55 CONSUMER INSTALLMENT CREDIT1 Millions of dollars, amounts outstanding, end of period 1992 1993 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999900 11999911 11999922 Nov. Dec. Jan. Feb. Mar.r Apr. Seasonally adjusted 1 Total 738,765 733,510 741,093 736,023 741,093 744,196 748,765 751,727 754,006 2 Automobile 284,739 260,898 259,627 258,860 259,627 258,463 260,945 261,449 261,868 3 Revolving.. 222,552 243,564 254,299 252,086 254,299 256,435 259,378 260,990 262,624 4 Other 231,474 229,048 227,167 225,077 227,167 229,299 228,443 229,288 229,514 Not seasonally adjusted 5 Total 752,883 749,052 756,944 737,651 756,944 749,153 746,914 744,713 748,244 By major holder 6 Commercial banks 347,087 340,713 331,869 325,149 331,869 330,355 330,060 329,764 331,072 7 Finance companies 133,258 121,937 117,127 116,558 117,127 116,009 112,686 111,854 112,4% 8 Credit unions 93,057 92,681 97,641 96,092 97,641 98,261 98,785 99,778 101,534 9 Retailers 43,464 39,832 42,079 36,678 42,079 40,057 38,462 38,030 38,218 10 Savings institutions 52,164 45,965 43,461 42,746 43,461 43,428 43,516 43,255 43,344 11 Gasoline companies 4,822 4,362 4,365 4,365 4,365 4,366 4,148 4,080 4,280 12 Pools of securitized assets2 .. 79,030 103,562 120,402 116,063 120,402 116,677 119,257 117,952 117,300 By major type of credit* 13 Automobile 284,903 261,219 259,964 259,148 259,964 257,744 259,344 259,089 260,266 14 Commercial banks 124,913 112,666 109,743 109,459 109,743 109,671 111,005 111,287 111,384 15 Finance companies 75,045 63,415 57,605 58,386 57,605 57,165 54,036 53,508 53,986 16 Pools of securitized assets 24,620 28,915 33,878 32,979 33,878 32,388 36,031 36,0% 36,178 17 Revolving 234,801 256,876 267,949 252,877 267,949 261,217 258,430 257,544 258,940 18 Commercial banks 133,385 138,005 132,582 127,481 132,582 129,567 127,877 128,079 129,455 19 Retailers 38,448 34,712 36,629 31,444 36,629 34,666 33,110 32,681 32,838 20 Gasoline companies 4,822 4,362 4,365 4,365 4,365 4,366 4,148 4,080 4,280 21 Pools of securitized assets 45,637 63,595 74,243 70,889 74,243 71,927 72,024 70,890 69,919 22 Other 233,178 230,957 229,031 225,626 229,031 230,192 229,141 228,080 229,038 23 Commercial banks 88,789 90,042 89,544 88,209 89,544 91,117 91,178 90,398 90,233 24 Finance companies 58,213 58,522 59,522 58,172 59,522 58,844 58,651 58,346 58,510 25 Retailers 5,016 5,120 5,450 5,234 5,450 5,391 5,352 5,349 5,380 26 Pools of securitized assets 8,773 11,052 12,281 12,195 12,281 12,362 11,202 10,966 11,203 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. INTEREST RATES Commercial banks2 1 48-month new car 11.78 11.14 99..2299 n.a. 88..6600 n.a. n.a. 88..5577 n.a. n.a. 2 24-month personal 15.46 15.18 14.04 n.a. 13.55 n.a. n.a. 13.57 n.a. n.a. 3 120-month mobile home 14.02 13.70 12.67 n.a. 12.36 n.a. n.a. 12.38 n.a. n.a. 4 Credit card 18.17 18.23 17.78 n.a. 17.38 n.a. n.a. 17.26 n.a. n.a. Auto finance companies 12.54 12.41 99..9933 99..5511 99..6655 99..6655 1100..0088 1100..3322 99..9955 99..6611 6 Used car 15.99 15.60 13.80 13.37 13.37 13.66 13.72 13.90 13.21 12.74 OTHER TERMS3 Maturity (months) 54.6 55.1 54.0 54.1 54.1 53.6 5533..99 5544..33 5544..66 5544..55 46.0 47.2 47.9 47.9 47.8 47.7 49.2 49.0 49.0 48.9 Loan-to-value ratio 87 88 89 89 89 90 90 91 9900 9900 10 Used car 95 % 97 97 97 97 97 98 98 98 Amount financed (dollars) 12,071 12,494 13,584 1133,,888855 1144,,004433 14,315 1133,,997755 1133,,884499 1144,,001133 1144,,002211 12 Used car 8,289 8,884 9,119 9,373 9,475 9,464 9,472 9,457 9,641 9,731 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

A40 Domestic NonfinancialS tatistics • August 1993 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1991 1992" 11998888 11998899 11999900 11999911rr 11999922rr Q2 Q3 Q4 Qi Q2 Q3 Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 775.8 740.8 665.0 461.0 574.4 548.6r 411.5" 403.8" 672.2 560.3 486.7 578.2 By sector and instrument 2 U.S. government 155.1 146.4 246.9 278.2 304.0 276.7 288.4 320.4 368.9 351.9 193.4 301.7 3 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 620.7 594.4 418.2 182.8 270.4 271.9" 123.1" 83.4" 303.3 208.5 293.2 276.5 By instrument 6 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 7 Corporate bonds 103.1 73.8 47.1 78.8 67.3 96.5 81.6 60.2 76.3 77.8 61.3 53.7 8 Mortgages 317.3 303.0 244.0 138.5 140.9 187.8r 53.3" 106.3" 194.1 96.5 140.9 132.3 9 Home mortgages 241.8 245.3 219.4 144.6 198.3 166.0" 135.4" 128.4" 225.0 140.9 212.6 214.9 10 Multifamily residential 16.7 16.4 3.7 -2.4 -14.6 15.3" -36.3" 10.2" 2.4 -17.7 -13.6 -29.5 11 Commercial 60.8 42.7 21.0 -4.3 -42.9 6.6" -45.3" -32.4" -32.5 -28.9 -60.0 -50.1 17 Farm -2.1 -1.5 -.1 .5 .1 -.1" -.4" .0 -.8 2.2 1.9 -3.0 13 Consumer credit 50.1 41.7 17.5 -13.1 9.3 -6.6" -24.8" -11.9" -2.0 -15.5 9.2 45.6 14 Bank loans n.e.c 41.0 40.2 4.4 -33.3 -17.7 -34.5 -18.2 -65.3" -22.9 -22.9 -4.5 -20.6 15 Open market paper 11.9 21.4 9.7 -18.4 8.6 -15.9 -36.3 -7.0 13.3 -3.1 .5 23.8 16 Other 43.6 49.3 44.2 -15.6 8.6 -4.1" 13.8" -44.3" -7.5 2.7 33.5 5.8 By borrowing sector 17 State and local government 48.9 63.2 48.3 38.5 47.0 38.6 37.6 4411..99 46.1 63.4 5500..00 2288..66 18 Household 318.6 305.6 254.2 160.2 222.6 197.9" 148.3" 136.5" 231.5 157.9 238.0 262.8 19 Nonfinancial business 253.1 225.6 115.6 -15.9 .8 35.4" -62.8" -95.0" 25.8 -12.9 5.2 -14.9 70 Farm -7.5 1.6 2.5 2.2 .0 2.7" 1.9" -2.2 -1.4 6.6 1.0 -6.2 21 Nonfarm noncorporate 61.8 50.4 26.7 -23.4 -40.1 10.4" -65.8" -51.9" -22.9 -49.9 -38.6 -49.0 22 Corporate 198.8 173.6 86.4 5.3 40.9 22.3" 1.2" -40.9" 50.0 30.5 42.8 40.3 23 Foreign net borrowing in United States 6.4 10.2 23.9 14.1 23.9 -63.2 15.6 41.0 9.7 55.2 29.5 1.1 74 Bonds 6.9 4.9 21.4 14.9 17.8 10.6 15.5 22.3 4.9 21.9 21.0 23.5 75 Bank loans n.e.c -1.8 -.1 -2.9 3.1 2.3 -3.5 1.4 6.5 1.5 14.1 3.9 -10.3 26 Open market paper 8.7 13.1 12.3 6.4 5.2 -51.9 16.0 14.9 -8.0 27.8 13.1 -12.1 27 U.S. government loans -7.5 -7.6 -6.9 -10.2 -1.4 -18.3 -17.2 -2.7 11.4 -8.5 -8.6 .0 28 Total domestic plus foreign 782.2 750.9 688.9 475.1 598.2 485.4r 427.1r 444.8" 681.8 615.5 516.2 579.3 Financial sectors 29 Total net borrowing by financial sectors 211.4 220.1 187.1 138.4 226.0 113.1" 146.0" 170.0" 155.9 233.8 277.7 236.4 By instrument 30 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 31 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 32 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 33 Loans from U.S. government .0 .0 -.1 .0 .0 .0 .0 -.1 .0 .0 .0 .0 34 Private 91.7 69.1 19.7 -11.6 58.8 -16.3" -10.0" 11.6" 18.5 11.0 112.1 93.7 35 Corporate bonds 16.2 46.8 34.4 54.3 51.5 79.5" 31.8" 50.6" 11.4 14.9 73.5 106.1 36 Mortgages .3 .0 .3 .9 .0 .9 .4 2.1" -.4 .1 .3 .2 37 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 11.3 38 Open market paper 54.8 31.3 8.6 -32.0 -.7 -46.0 -16.7 -12.7 8.8 -13.4 11.6 -9.7 39 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 40 Sponsored credit agencies 44.9 25.2 17.0 9.1 40.2 -29.7 2200..66 3322..55 11.5 48.3 67.7 33.5 41 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 47 Private 91.7 69.1 19.7 -11.6 58.8 -16.3" -10.0" 11.6" 18.5 11.0 112.1 93.7 43 Commercial banks -3.0 -1.4 -1.1 -13.3 4.5 -11.7 -9.2 -14.1 7.2 .8 1.6 8.3 44 Bank affiliates 5.2 6.2 -27.7 -2.5 2.3 -3.5 -6.8 9.6 2.7 -8.2 10.5 4.0 45 Savings and loan associations 19.9 -14.1 -29.9 -39.5 -4.7 -48.7 -41.1 -25.1 -20.3 2.7 10.0 -11.2 46 Mutual savings banks 1.9 -1.4 -.5 -3.5 1.8 -1.7 -5.5 -8.7 4.3 .3 8.3 -5.6 47 Finance companies 31.5 59.7 35.6 7.8 16.4 2.7" 11.8" 12.8" 1.1 -20.0 28.6 55.9 48 Real estate investment trusts (REITs) 3.6 -1.9 -1.9 .9 .6 .1 -.3 3.6" 1.1 .9 1.3 -.9 49 Securitized credit obligation (SCO) issuers 32.5 22.0 45.2 38.5 38.0 46.4" 41.1" 33.3" 22.4 34.5 52.0 43.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.57—Continued 1991 1992r TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911rr 11999922rr Q2 Q3 Q4 QL Q2 Q3 Q4 All sectors 50 Total net borrowing, all sectors 993.6 971.0 876.0 613.5 824.2 598.5r 573.lr 614.8r 837.8 849.4 793.9 815.7 51 U.S. government securities ... 274.9 297.3 414.4 428.3 471.1 406.1 444.4 479.0 506.3 574.7 359.0 444.4 52 State and local 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 53 Corporate and foreign bonds .. 126.3 125.5 102.9 147.9 136.6 186.6r 128.9r 133.2r 92.6 114.5 155.8 183.3 54 Mortgages 317.5 303.0 244.3 139.4 141.0 188.8r 53.7r 108.4r 193.6 96.6 141.1 132.5 55 Consumer credit 50.1 41.7 17.5 -13.1 9.3 -6.6r -24.8r -11.9r -2.0 -15.5 9.2 45.6 56 Bank loans n.e.c 39.9 41.9 2.8 -26.9 -8.2 -40.9 -6.7 -54.3r -13.2 -4.9 4.9 -19.6 57 Open market paper 75.4 65.9 30.7 -44.0 13.1 -113.8 -37.0 -4.9 14.1 11.2 25.2 2.0 58 Other loans 55.8 30.6 12.4 -63.9 8.0 -70. lr -39.0" -80. lr -5.6 -.2 46.3 -8.4 External corporate equity funds raised in United States 59 Total net share issues -118.4 -65.7 22.1 198.9 279.6 182.3 232.5 268.5' 263.6 291.7 286.8 276.5 60 Mutual funds 6.1 38.5 67.9 150.5 215.4 125.6 182.5 195.9 183.5 236.2 233.3 208.4 6 6 2 1 Al N l o o t n h f e i r n ancial corporations - -1 1 2 2 9 4 . . 5 5 - - 1 1 0 2 4 4 . . 2 2 - - 4 6 5 3 . . 8 0 4 1 8 8 . . 4 3 6 2 4 6 . . 3 8 5 1 6 2 . . 7 0 5 1 0 9 . . 0 0 4 7 8 2 . . 0 6 r 8 4 0 6 . . 1 0 5 3 5 6 . . 5 0 5 1 3 1 . . 6 0 6 1 8 4 . . 1 0 6 6 3 4 F F i o n r a e n ig c n ia l s h c a o r r e p s o p ra u t r i c o h n a s s ed in United States 4. . 1 9 1 2 7 . . 7 2 9 7. . 4 8 30. . 2 0 31 6 . . 2 4 36 8 . . 6 1 - 3 3 4 . . 2 1 22 1 . . 9 7 r 2 4 9 . . 1 9 1 8 1 . . 5 0 34 7 . . 7 9 49 5 . . 1 0 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Financial Statistics • August 1993 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 Ql Q2 Q3 Q4 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 993.6 971.0 876.0 613.5r 824.2 598.5' 573.1' 614.8' 837.8 849.4 793.9 815.7 2 Private domestic nonfinancial sectors 226.2 209.6 203.8 31.8R 75.0 202.2' -131.1' -25.9' 162.4 118.0 -166.4 186.1 3 Households 198.9 179.5 172.3 ,4R 79.9 191.6' -170.1' -67.8' 181.9 105.3 -159.0 191.5 4 Nonfarm noncorporate business 3.1 -.8 -1.4 -2.3R -2.2 -2.5' -1.9F -2.8' -1.9 -2.6 -2.2 -2.2 5 Nonfinancial corporate business 5.7 12.9 6.6 17.5R 8.8 23.6' 28.8' 26.6' -1.4 11.8 10.6 14.3 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 -12.7 24.8 -2.1 -17.9 13.9 -24.9 -27.0 -12.8 8 9 F F o in r a e n ig c n i al sectors 68 9 1 6 . . 8 3 69 7 0 4 . . 4 1 58 5 0 8 . . 2 4 5 4 2 2 9 . . 6 l r 66 9 6 5 . . 5 3 32 51 0 . . 4 2 ' 66 37 9 . . 3 0 ' 58 7 7 1. . 0 6 ' 57 8 3 8 . . 0 4 6 1 1 3 7 9 . . 0 2 92 6 4 3 . . 0 4 55 9 2 0 . . 1 3 10 Sponsored credit agencies 37.1 -.5 16.4 14.2 68.7 -22.3' 31.7' 19.7' 93.1 39.9 76.5 65.3 11 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 12 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 13 Commercial banking 157.1 176.8 125.4 84.0 91.9 34.7 82.4 104.3 98.9 58.4 157.4 53.1 14 U.S. commercial banks 127.1 145.7 95.2 38.9 69.5 6.4 26.5 45.6 91.9 .5 132.0 53.4 15 Foreign banking offices 29.4 26.7 28.4 48.5 16.5 33.7 56.7 61.3 .6 58.6 6.5 .4 16 Bank affiliates -.1 2.8 -2.8 -1.5 5.7 -2.6 2.4 -1.1 6.4 -.6 18.5 -1.6 17 Banks in U.S. possession .7 1.6 4.5 -1.9 .3 -2.8 -3.3 -1.5 .0 -.1 .4 .8 18 Private nonbank finance 402.2 395.7 279.9 259.0" 351.1 152.8' 371.3' 315.3' 222.0 334.5 581.3 266.8 19 Thrift institutions 119.0 -91.0 -151.9 -144.9 -61.7 -164.8 -176.8 -49.5' -113.1 -81.4 -40.5 -11.8 20 Savings and loan associations 87.4 -93.9 -143.9 -140.9 -76.7 -144.0 -156.3 -83.3 -137.9 -92.4 -38.5 -38.1 21 Mutual savings banks 15.3 -4.8 -16.5 -15.5 -1.4 -31.1 -30.8 11.5 7.6 -7.4 -13.0 7.4 22 Credit unions 16.3 7.7 8.5 11.5 16.4 10.2 10.3 22.3' 17.2 18.5 11.0 18.9 23 Insurance 186.2 207.7 188.5 219.5R 178.9 212.0' 259.0' 159.2' 110.7 183.9 247.1 174.0 24 Life insurance companies 103.8 93.1 94.4 83.2 89.7 132.8 73.8 13.2 80.6 81.9 96.5 99.9 25 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 26 Private pension funds 18.1 36.2 16.6 64.7R 36.9 -6.8' 115.0' %.9R -32.2 49.7 109.8 20.3 27 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 28 Finance n.e.c 96.9 278.9 243.3 184.4R 233.9 105.6' 289.2' 205.6' 224.4 232.0 374.8 104.5 29 Finance companies 49.2 69.3 41.6 -22.5R 21.5 -14.0R -5.4' -54.9' 39.2 -22.3 8.5 60.5 30 Mutual funds 11.9 23.8 41.4 90.3 132.3 75.3 117.1 124.8 99.1 169.0 150.7 110.4 31 Money market funds 10.7 67.1 80.9 30.1 1.3 -68.9 1.1 53.8 65.8 -24.8 -16.3 -19.2 32 Real estate investment trusts (REITs) .9 .5 -.7 -1.0" .6 -.1 -.6 .3 2.6 -.3 -.1 33 Brokers and dealers -8.2 96.3 34.9 49.0 40.2 66.8 135.8 50.5 -2.4 73.0 180.3 -90.2 34 Securitized credit obligation (SCOs) issuers 32.5 22.0 45.2 38.5R 38.0 46.4' 41.1' 33.3' 22.4 34.5 52.0 43.2 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Net flows through credit markets 993.6 971.0 876.0 613.5r 824.2 598.5' 573.1' 614.8' 837.8 849.4 793.9 815.7 Other financial sources 36 Official foreign exchange 4.0 24.8 2.0 -5.9 -1.6 -4.8 -15.5 -5.0 3.5 -6.5 -8.5 5.1 37 Treasury currency and special drawing rights .5 4.1 2.5 .0 -1.8 .4 .4 .5 .1 .3 .2 -7.7 38 Life insurance reserves 25.3 28.8 25.7 24.5 29.9 31.4 19.4 19.2 30.5 28.4 33.3 27.5 39 Pension fund reserves 193.6 221.4 186.8 268.6R 232.9 190.4' 344.1' 244.2' 125.5 178.6 325.8 301.6 40 Interbank claims 2.9 -16.5 34.2 -3.7 50.5 -79.6 99.9 -32.5 55.4 22.1 118.0 6.4 41 Deposits at financial institutions 259.9 290.0 96.8 61.1 14.5 -75.4 27.3 47.8 73.5 -77.2 194.2 -132.4 42 Checkable deposits and currency 43.2 6.1 44.2 75.8 122.7 7.9 104.5 114.4 88.6 92.8 202.7 106.8 43 Small time and savings deposits 120.8 96.7 59.9 16.7 -61.1 -1.1 -42.4 13.0 -29.9 -89.3 -83.0 -42.1 44 Large time deposits 53.6 17.6 -66.7 -60.9 -79.7 -63.0 -78.1 -117.4 -78.8 -104.9 -54.8 -80.4 45 Money market fund shares 21.9 90.1 70.3 41.2 3.9 -58.7 4.0 26.8 110.2 -42.3 -13.0 -39.1 46 Security repurchase agreements 23.5 78.3 -23.5 -16.4 34.1 43.1 36.3 16.0 10.2 118.9 77.1 -69.7 47 Foreign deposits -3.1 1.1 12.6 4.6 -5.5 -3.6 3.0 -5.0 -26.9 -52.5 65.2 -8.0 48 Mutual fund shares 6.1 38.5 67.9 150.5 215.4 125.6 182.5 195.9 183.5 236.2 233.3 208.4 49 Corporate equities -124.5 -104.2 -45.8 48.4R 64.3 56.7 50.0 72.6' 80.1 55.5 53.6 68.1 50 Security credit 3.0 15.6 3.5 51.4 4.2 20.1 82.4 120.7 -72.1 -5.3 84.9 9.3 51 Trade debt 89.2 60.0 44.1 10.4 52.5 41.2 47.6 -7.3 71.1 38.8 64.8 35.1 52 Taxes payable 5.3 2.0 -.5 -9.0 7.8 -11.4 13.1 -3.2 10.6 9.4 -.6 11.7 5 5 4 3 M No is n c c e o l r la p n o e r o a u te s proprietors' equity - 2 3 2 1 2 . . 2 3 - 2 3 6 2 9 . . 5 9 - 1 3 2 9 0 . . 3 5 1 - 3 2 6 . . 7 8 R R 1 - 8 4 6 . . 3 3 -3 8 5 8 . . 2 6 ' ' 4 3 3 9 . . 2 0 ' ' 204 4 . . 4 8 ' ' - 1 1 8 6 1 . . 7 9 26 1 0 0 . . 8 7 - 2 1 2 8 5 . . 2 2 77 7 . . 3 0 55 Total financial sources 1,650.2 1,772.7 1,374.3 1,343.9' 1,674.7 946.6' 1,506.5' 1,477.1' 1,564.6 1,601.2 2,099.8 1,433.0 Floats not included in assets (-) 56 U.S. government checking deposits 1.6 8.4 3.3 -13.1 .7 15.6 23.9 -73.1 4.4 -11.7 -5.3 15.3 57 Other checkable deposits .8 -3.2 2.5 2.0 1.6 3.0 -2.1 -6.1 16.7 2.5 -13.9 1.1 58 Trade credit -.9 .6 21.5 15.0" 22.4 35.3' 23.8' -7.1' 24.3 -7.8 55.3 17.7 Liabilities not identified as assets (-) 59 Treasury currency -.1 -.2 .2 -.6 -.2 -.3 -.2 -.1 -.4 -.1 -.3 -.1 60 Interbank claims -3.0 -4.4 1.6 26.2 -5.5 20.8 28.4 .2 13.4 -15.1 -2.6 -17.7 61 Security repurchase agreements -29.8 23.9 -34.8 10.4 11.5 76.2 36.9 44.0 -46.5 86.3 26.1 -19.8 62 Taxes payable 6.3 2.3 6.5 5.6 14.4 2.0 23.4 11.4 1.6 24.5 15.3 16.3 63 Miscellaneous 4.4 -95.6 -13.8 -34.1' -38.6 -195.7' 182.3 -119.0 -95.7 27.6 32.8 64 Totals identified to sectors as assets 1,670.7 1,841.0 1,387.5 1,332.5' 1,668.5 785.1' 1,568.1' 1,325.7' 1,670.2 1,618.4 1,997.7 1,387.6 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 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

Flow of Funds A43 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1991 1992r TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911rr 11999922rr Q2 Q3 Q4r Q1 Q2 Q3 Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 10,087.1 10,760.8 11,222.9 11,801.3 10,971.5" 11,095.2" 11,222.9 11,353.6 11,488.0 11,634.5 11,801.3 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 8,446.6 8,720.9 8,379.6" 8,408.0" 8,446.6 8,493.9 8,564.7 8,635.6 8,720.9 By instrument 6 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 7 Corporate bonds 926.1 973.2 1,051.9 1,119.2 1,016.5 1,036.9 1,051.9 1,071.0 1,090.4 1,105.8 1,119.2 8 Mortgages 3.647.5 3,907.3 4,045.7 4,190.2 4,005.0" 4,020.3" 4,045.7 4.088.7 4,122.0 4.158.6 4,190.2 9 Home mortgages 2,515.1 2,760.0 2,904.6 3,102.9 2,837.9" 2,873.6" 2,904.6 2.951.8 2,9%. 1 3.050.7 3,102.9 10 Multifamily residential 304.4 305.8 303.3 288.7 309.8" 300.8" 303.3 303.9 299.5 2%.l 288.7 11 Commercial 742.6 757.6 753.3 710.4 772.7" 761.4" 753.3 745.2 737.9 722.9 710.4 12 Farm 85.3 84.0 84.5 88.2 84.6" 84.5" 84.5 87.9 88.5 88.9 88.2 13 Consumer credit 791.8 809.3 799.9 809.2 791.1" 790.1" 799.9 777.6 776.9 784.5 809.2 14 Bank loans n.e.c. 760.7 758.0 724.7 707.0 742.0 734.1 724.7 713.7 710.3 705.7 707.0 15 Open market paper 107.1 116.9 98.5 107.1 119.4 107.0 98.5 110.4 112.0 108.2 107.1 16 Other 598.4 642.6 624.5 633.5 633.1" 630.3" 624.5 620.8 624.5 627.3 633.5 By borrowing sector 17 State and local government 815.7 864.0 902.5 949.6 878.5 891.4 902.5 911.3 925.9 942.3 949.6 18 Household 3.508.2 3,780.6 3.944.5 4,167.0 3,853.6" 3,897.0" 3.944.5 3,970.3 4,023.0 4,087.8 4,167.0 19 Nonfinancial business 3,512.0 3,618.0 3.599.6 3,604.3 3,647.4" 3,619.6" 3.599.6 3,612.3 3,615.8 3,605.5 3,604.3 20 Farm 139.2 140.5 140.1 143.8 140.4" 141.7" 140.1 141.3 145.1 146.2 143.8 21 Nonfarm noncorporate 1,177.5 1,204.2 1.180.7 1,140.6 1,211.0" 1,191.3" 1.180.7 1,174.5 1,163.5 1,150.8 1,140.6 22 Corporate 2.195.3 2,273.4 2,278.7 2,319.9 2,296.1" 2,286.7" 2,278.7 2,296.5 2,307.2 2,308.5 2,319.9 23 Foreign credit market debt held in United States 254.8 278.6 292.7 307.3 277.6 282.2 292.7 282.3 298.3 306.6 307.3 24 Bonds 88.0 109.4 124.2 142.0 114.8 U8.6 124.2 125.4 130.9 136.2 142.0 25 Bank loans n.e.c 21.4 18.5 21.6 23.9 19.7 20.0 21.6 22.0 25.5 26.5 23.9 26 Open market paper 63.0 75.3 81.8 77.7 74.0 78.0 81.8 70.5 77.4 80.7 77.7 27 U.S. government loans 82.4 75.4 65.2 63.7 69.1 65.6 65.2 64.4 64.5 63.3 63.7 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 10,341.9 11,039.4 11,515.7 12,108.6 11,249.1" 11,377.5" 11,515.7 11,635.9 11,786.3 11,941.1 12,108.6 Financial sectors 29 Total credit market debt owed by financial sectors 2,333.0 2,524.2 2,670.3 2,897.0 2,580.8" 2,618.4" 2,670.3 2,701.2 2,758.1 2,828.6 2,897.0 By instrument 30 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 31 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 3 3 2 3 L M o o a r n tg s a f g r e o m po U ol . S se . c g u o r v it e i r e n s ment 87 5 1 . . 0 0 1,01 4 9 . . 9 9 1,16 4 6 . . 8 7 1,29 4 3 . . 8 5 1,09 4 5 . . 9 2 1,13 4 1 . . 9 5 1,16 4 6 . . 8 7 1,19 4 3 . . 8 2 1,23 4 5 . . 8 6 1,26 4 2 . . 8 5 1,29 4 3 . . 8 5 34 Private 1,083.7 1,105.8 1,095.9 1,155.6 1,091.3" 1,087.3" 1,095.9 1,097.4 1,099.8 1,126.6 1,155.6 35 Corporate bonds 491.9 528.2 584.2 627.2 564.9" 572.8" 584.2 581.3 583.7 602.3 627.2 36 Mortgages 3.4 4.2 5.1 5.1 4.5 4.6 5.1 5.0 5.0 5.1 5.1 37 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 38 Open market paper 409.1 417.7 385.7 394.3 390.1 387.0 385.7 393.2 390.5 394.6 394.3 39 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 40 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 41 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 42 Private financial sectors 1,083.7 1,105.8 1,095.9 1,155.6 1,091.3" 1,087.3" 1,095.9 1,097.4 1,099.8 1,126.6 1,155.6 43 Commercial banks 77.4 76.3 63.0 67.4 65.9 64.6 63.0 60.8 61.7 63.3 67.4 44 Bank affiliates 142.5 114.8 112.3 114.6 113.3 110.6 112.3 115.0 112.7 114.4 114.6 45 Savings and loan associations 145.2 115.3 75.9 71.1 91.0 79.0 75.9 71.2 70.3 70.9 71.1 46 Mutual savings banks 17.2 16.7 13.2 15.1 16.6 15.2 13.2 13.5 14.3 16.2 15.1 47 Finance companies 504.2 539.8 547.5 563.8 540.0" 543.3" 547.5 546.7 541.6 549.1 563.8 48 Real estate investment trusts (REITs) 10.1 10.6 12.3 13.6 11.0 11.2 12.3 12.7 13.2 13.7 13.6 49 Securitized credit obligation (SCO) issuers, 187.1 232.3 271.9 309.9 253.3" 263.6" 271.9 277.5 286.1 299.1 309.9 All sectors 50 Total credit market debt, domestic and foreign 12,674.9 13,563.6 14,186.0 15,005.6 13,830.0" 13,995.8" 14,186.0 14,337.1 14,544.4 14,769.7 15,005.6 51 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 4,6%.0 4,817.0 52 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 53 Corporate and foreign bonds 1,506.0 1,610.7 1,760.4 1,888.5 1,6%. 1" 1,728.3" 1,760.4 1,777.8 1,805.0 1,844.2 1,888.5 54 Mortgages 3,650.9 3,911.5 4,050.8 4,195.4 4,009.5" 4,024.9" 4,050.8 4,093.8 4,127.0 4,163.7 4,195.4 55 Consumer credit 791.8 809.3 799.9 809.2 791.1" 790.1" 799.9 777.6 776.9 784.5 809.2 56 Bank loans n.e.c 819.6 815.1 788.2 780.0 798.7 793.2 788.2 777.3 779.5 776.6 780.0 57 Open market paper 579.2 609.9 565.9 579.0 583.6 572.0 565.9 574.1 579.9 583.6 579.0 58 Other loans 827.5 839.9 773.5 781.9 801.9" 784.7" 773.5 766.3 770.7 775.5 781.9 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

A44 Domestic Nonfinancial Statistics • August 1993 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1991 1992r TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922rr Q2 Q3 Q4 QI Q2 Q3 Q4 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 12,674.9 13,563.6 14,186.0R 15,005.6 I3,830.0R 13,995.8R 14,186.0R 14,337.1 14,544.4 14,769.7 15,005.6 7 Private domestic nonfinancial sectors 2,440.5 2,644.2 2,552.8r 2,622.8 2,670.7r 2,666.2r 2,552.8r 2,559.5 2,561.6 2,551.6 2,622.8 Households 1,710.1 1,882.3 l,760.5r 1,835.5 1,901 ^ l,897.3r l,760.5r 1,784.6 1,773.4 1,776.1 1,835.5 4 Nonfarm noncorporate business 56.4 55.0 52.6r 50.4 53. lr 52.6r 52.6r 51.4 50.8 50.2 50.4 5 Nonfinancial corporate business 180.3 186.9 203.4r 212.3 187^ 186.3r 203.4r 192.1 204.2 197.7 212.3 6 State and local governments 493.7 519.9 536.2 524.7 528.8 530.0 536.2 531.4 533.3 527.6 524.7 7 U.S. government 205.1 238.7 246.2 233.5 252.9 252.0 246.2 250.2 245.3 238.1 233.5 8 734.2 792.4 835.1 930.8 807.9 817.2 835.1 857.2 892.0 908.2 930.8 9 9,295.1 9,888.3 10,552.0r 11,218.5 10,098.5r 10,260.3r 10,552.0r 10,670.2 10,845.5 11,071.8 11,218.5 10 Sponsored credit agencies 367.2 383.6 397.7 466.4 382.7r 389.0r 397.7 419.9 429.0 446.3 466.4 11 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 1? Monetary authority 233.3 241.4 272.5 300.4 253.7 264.7 272.5 271.8 282.6 285.2 300.4 N Commercial banking 2,643.9 2,769.3 2,853.3 2,945.2 2,7%.6 2,817.8 2,853.3 2,860.6 2,882.9 2,922.9 2,945.2 14 U.S. commercial banks 2,368.4 2,463.6 2,502.5 2,571.9 2,480.0 2,488.7 2,502.5 2,514.0 2,521.9 2,556.7 2,571.9 IS Foreign banking offices 242.3 270.8 319.2 335.8 284.4 297.5 319.2 313.3 328.2 328.9 335.8 16 Bank affiliates 16.2 13.4 11.9 17.6 11.3 11.6 11.9 13.6 13.1 17.5 17.6 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 5,861.7r 6,212.9 5,570.3r 5,657.2r 5,861.7r 5,924.8 6,015.4 6,155.0 6,212.9 19 Thrift institutions 1,484.9 1,335.5 l,190.7r 1,129.0 1,248.4 1,205.1 l,190.7r 1,161.8 1,143.1 1,133.7 1,129.0 20 Savings and loan associations 1,088.9 945.1 804.2 727.5 866.3 826.1 804.2 771.1 748.8 737.9 727.5 ?1 241.1 227.1 211.5 210.2 216.4 208.7 211.5 213.4 211.6 208.3 210.2 ?? Credit unions 154.9 163.4 174.9 191.3 165.7 170.2 174.9 177.3 182.7 187.4 191.3 ?3 2,140.3 2,329.1 2,676.8r 2,855.7 2,444.7r 2,508.7r 2,676.8r 2,709.0 2,757.3 2,818.1 2,855.7 74 Life insurance companies 1,013.1 1,116.5 1,199.6 1,289.4 1,183.7 1,201.4 1,199.6 1,224.3 1,247.1 1,270.3 1,289.4 75 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 76 Private pension funds 394.7 431.3 624.2r 661.1 437.8r 466.6r 624.2r 616.1 628.5 656.0 661.1 77 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 78 1,554.5 1,809.4 l,994.3r 2,228.2 l,877.2r l,943.5r l,994.3r 2,053.9 2,115.0 2,203.1 2,228.2 79 Finance companies 617.1 658.7 635.5r 656.9 651.9r 647.5r 635.5r 640.5 641.2 640.7 656.9 30 Mutual funds 307.2 360.2 450.5 582.8 394.4 421.4 450.5 478.8 522.0 557.5 582.8 31 Money market funds 291.8 372.7 402.7 404.1 389.9 389.5 402.7 424.0 413.5 408.8 404.1 3? Real estate investment trusts (REITs) .... 8.4 7.7 6.8r 7.4 7.4 7.2 6.8r 6.8 7.5 7.4 7.4 33 Brokers and dealers 142.9 177.9 226.9 267.1 180.4 214.3 226.9 226.3 244.6 289.6 267.1 34 Securitized credit obligation (SCOs) issuers . 187.1 232.3 271^ 309.9 253.3r 263.6r 271.9r 277.5 286.1 299.1 309.9 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Total credit market debt 12,674.9 13,563.6 14,186.0R 15,005.6 13,830.0R 13,995.8R 14,186.0R 14,337.1 14,544.4 14,769.7 15,005.6 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 2233..88 2266..33 26.3 24.5 26.1 2266..22 26.3 26.3 26.4 2266..55 2244..55 38 Life insurance reserves 354.3 380.0 402.0 431.9 392.3 397.2 402.0 409.6 416.7 425.0 431.9 39 Pension fund reserves 3,210.5 3,303.0 4,208.8r 4,573.7 3,551.7r 3,717.7r 4,208.8r 4,226.3 4,278.7 4,418.1 4,573.7 40 32.4 64.0 65.2 115.4 35.9 60.9 65.2 67.2 70.8 101.6 115.4 41 Deposits at financial institutions 4,644.6 4,741.4 4,802.5 4,817.0 4,765.7 4,769.5 4,802.5 4,796.4 4,785.1 4,829.9 4,817.0 4? Checkable deposits and currency 888.6 932.8 1,008.5 1,131.0 933.1 948.3 1,008.5 984.3 1,032.3 1,071.6 1,131.0 43 Small time and savings deposits 2,265.4 2,325.3 2,342.0 2,281.0 2,351.5 2,339.7 2,342.0 2,340.9 2,314.7 2,293.3 2,281.0 44 Large time deposits 615.4 548.7 487.9 408.4 532.6 517.1 487.9 469.7 438.7 428.8 408.4 45 Money market fund shares 428.1 498.4 539.6 543.6 532.8 533.1 539.6 572.0 557.2 553.2 543.6 46 Security repurchase agreements 403.2 379.7 363.4 397.5 354.0 368.9 363.4 375.1 401.0 425.4 397.5 47 Foreign deposits 43.9 56.6 61.2 55.6 61.7 62.4 61.2 54.4 41.3 57.6 55.6 48 Mutual fund shares 566.2 602.1 813.9 1,050.2 683.7 744.2 813.9 860.4 928.3 971.2 1,050.2 49 Security credit 133.9 137.4 188.9 217.3 137.5 158.1 188.9 194.6 193.3 214.5 217.3 50 Trade debt 903.9 938.0 940.9 1,003.6 909.4 935.3 940.9 939.8 944.9 987.7 1,003.6 51 Taxes payable 81.8 81.4 72.3 80.1 65.8 71.9 72.3 77.4 72.7 75.8 80.1 52 Miscellaneous 2,508.3 2,678.8 2,817.3r 2,931.8 2,699.7r 2,733.9r 2,817.3r 2,834.5 2,876.0 2,911.5 2,931.8 53 Total liabilities 25,188.3 26,577.2 28,579.6R 30,303.0 27,151.4R 27,663.7R 28,579.6' 28,822.3 29,191.8 29,786.8 30,303.0 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.0 22.0 22.6r 19.6 21.7r 22.lr 22.6r 22.7 23.2 24.5 19.6 55 Corporate equities 3,819.7 3,506.6 4,357^ 4,827.2 3,987.9r 4,170.5r 4,357.9r 4,461.9 4,404.7 4,576.8 4,827.2 56 Household equity in noncorporate business 2,524.9 2,449.4 2,366.0r 2,260.8 2,510.6r 2,493.4r 2,366.0r 2,365.5 2,346.4 2,322.2 2,260.8 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 -138.5r -105.9 -160.4r -157.7r -138.5r -135.3 -149.5 -131.3 -105.9 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 --55..00 --55..00 61 Interbank claims -31.0 -32.0 -4.2 -9.9 -9.9 -4.7 -4.2 -1.8 -4.0 -5.9 -9.9 62 Security repurchase agreements 11.5 -23.3 -12.9 -2.8 -25.8 -10.6 -12.9 -11.4 5.8 16.7 -2.8 63 20.6 21.8 18.9 32.0 11.8 17.6 18.9 14.7 20.9 25.4 32.0 64 Miscellaneous -251.1 -247.3 -458.5r -558.3 -241.lr -300.6r -458.5' -458.1 -476.5 -527.9 -558.3 65 Totals identified to sectors as assets 31,935.2 32,944.3 35,891.3R 38,021.1 34,063.6R 34,767.1R 35,891.3' 36,238.9 36,540.2 37,311.0 38,021.1 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

Selected Measures A45 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, 1987=100 except as noted 1992 1992 Sept. Mar.1 1 Industrial production1 104.1 106.5 107.5 108.4 109.3 109.9 Market groupings 2 3 Pro F d in u a c l t , s , t o t t o a t l a l 1 1 0 0 5 7 . . 5 0 1 1 0 0 3 5 . . 1 3 1 1 0 0 5 8 . . 6 2 1 10 0 8 5 . .3 1 1 1 0 1 7 0 . . 1 1 1 1 0 1 7 1 . . 8 0 1 1 0 1 8 1 . .5 2 1 1 0 1 8 1 . . 5 9 1 1 0 1 9 2 . . 2 4 " " 1 11 0 2 9 . .5 8 4 Consumer goods 103.4 102.8 105.2 104.4 106.4 107.1 107.5 107.6 108.5" 108.8 5 Equipment 112.1 108.9 112.7 113.5 115.4 116.7 117.2 118.1 118.0" 118.6 6 Intermediate 101.2 96.5 97.6 96.9 97.8 98.1 98.3 98.2 99.3 99.6 7 Materials 106.8 105.5 107.9 107.4 108.1 109.3 110.0 110.4 110.9" 110.9 Industry groupings 8 Manufacturing 106.1 106.9 108.0 108.9 109.9 110.5 110.7 9 Capacity utilization, manufacturing 81.1 77.8 78.8 78.4 79.2 79.7 80.5 (percent)2 95.3 89.7 94. lr 89.0 104.0 92.0 90.0 100.0 95.0 94.0 10 Construction contracts3 107.7r 106.2r 106.4r 106.6" 106.7" 106.8" 107.0" 107.1" 107.4" 107.5 11 Nonagricultural employment, total4 ... 101.2r 96.6r 94.9" 93.3" 93.2" 93.2" 93.2" 93.2" 93.5" 93.3 12 Goods-producing, total 100.6r 97. lr 95.8r 94.5" 94.3" 94.3" 94.3" 94.4" 94.5" 94.4 1 1 3 4 M M a a n n u u f f a a c c t t u u r r i i n n g g , , t p o r t o a d l uction worker 1 1 0 0 0 9 . .8 2 r r 1 9 0 6 9 . . 3 3 r r 1 9 1 5 0 . . 3 0 r " 1 9 1 4 0 . . 0 8 " " 1 9 1 3 1 . .0 9" " 1 9 1 4 1 . . 0 2 " " 1 9 1 4 1 . . 1 4 " " 1 9 1 4 1 . . 3 6 " " 1 9 1 4 1 . . 5 9 " " 1 9 12 4 . .4 0 15 Service-producing 122.7 127.0 133.0 133.6 135.3 135.3 136.6 137.4 137.5 138.4 16 Personal income, total 121.3 124.4 129.0 129.5 130.5 131.2 132.3 133.1 132.9 132.8 17 Wages and salary disbursements 113.5 113.6 115.4 115.3 116.5 116.0 118.0 117.2 117.8 117.8 18 Manufacturing , 122.9 128.0 134.7 135.2 137.0 136.8 138.2 138.8 139.0 140.0 19 Disposable personal income 120.2 121.3 127.2 128.1 130.7 130.5 131.9 132.0 131.9 130.5 20 Retail sales6 Prices7 21 Consumer (1982-84= 100) 130.7 136.2 140.3 141.3 141.8 142.0 141.9 142.6 143.1 143.6 22 Producer finished goods (1982=100)... 119.2 121.7 123.2 123.3 124.4 124.0 123.8 124.2" 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. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted except as noted 1992" 1993 CCaatteeggoorryy 11999900 11999911 11999922 Oct. Nov. Dec. Jan." Feb." Mar." Apr." May HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 189,686 191,329 193,142 193,683 193,847 194,026 194,159 194,298 194,456 194,618 194,767 ? 126,424 126,867 128,548 128,618 128,896 129,108 128,598 128,839 128,926 128,833 129,615 3 Civilian labor force 124,787 125,303 126,982 127,066 127,365 127,591 127,083 127,327 127,429 127,341 128,131 Employment 4 Nonagricultural industries 114,728 114,644 114,391 114,518 114,855 115,049 114,879 115,335 115,483 115,356 116,203 5 Agriculture 3,186 3,233 3,207 3,169 3,209 3,262 3,191 3,116 3,082 3,060 3,070 Unemployment 6 Number 6,874 8,426 9,384 9,379 9,301 9,280 9,013 8,876 8,864 8,925 8,858 7 Rate (percent of civilian labor force) — 5.5 6.7 7.4 7.4 7.3 7.3 7.1 7.0 7.0 7.0 6.9 8 Not in labor force 63,262 64,462 64,594 65,065 64,951 64,918 65,561 65,459 65,530 65,785 65,152 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 109,782 108,310 108,434 108,789 108,921 109,079 109,235 109,539 109,565 109,781 109,990 10 Manufacturing 19,117 18,455 18,192 17,911 17,917 17,913 17,936 17,954 17,935 17,860 17,821 11 710 691 635 618 616 613 611 600 600 599 599 17 Contract construction 5,133 4,685 4,594 4,466 4,462 4,459 4,454 4,515 4,481 4,517 4,584 13 Transportation and public utilities 5,808 5,772 5,741 5,699 5,699 5,707 5,719 5,725 5,724 5,717 5,727 14 25,877 25,328 25,120 25,454 25,466 25,522 25,609 25,726 25,707 25,754 25,787 15 6,729 6,678 6,672 6,570 6,569 6,575 6,578 6,577 6,574 6,584 6,583 16 28,130 28,323 28,903 29,361 29,430 29,524 29,573 29,665 29,756 29,955 30,081 17 Government 18,304 18,380 18,578 18,710 18,762 18,766 18,755 18,777 18,788 18,795 18,808 1. Persons sixteen years of age and older, including Resident Armed Forces. pay for, the pay period that includes the twelfth day of the month; excludes Monthly figures are based on sample data collected during the calendar week that proprietors, self-employed persons, household and unpaid family workers, and contains the twelfth day; annual data are averages of monthly figures. By members of the armed forces. Data are adjusted to the March 1984 benchmark, definition, seasonality does not exist in 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 • August 1993 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1992 1993 1992 1993 1992 1993 SSeerriieess Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 106.3 106.5 108.3 109.7 133.2 133.7 134.2 134.8 79.8 79.7 80.7 81.4 2 Manufacturing 106.7 107.0 108.7 110.4 135.4 136.0 136.6 137.2 78.8 78.7 79.6 80.5 3 Primary processing 103.9 103.7 104.7 106.4 126.1 126.4 126.6 126.8 82.4 82.1 82.7 83.9 4 Advanced processing 108.0 108.5 110.6 112.3 139.8 140.6 141.3 142.1 77.3 77.2 78.3 79.0 5 Durable goods 107.8 108.3 110.8 113.6 141.2 141.9 142.6 143.4 76.3 76.3 77.7 79.2 6 Lumber and products 95.1 96.0 98.5 99.7 112.3 112.4 112.5 112.6 84.7 85.4 87.6 88.6 7 Primary metals 101.3 99.7 101.5 105.0 125.6 125.3 125.0 124.9 80.7 79.6 81.2 84.1 8 Iron and steel 104.7 103.5 105.0 109.1 130.8 130.4 129.9 129.8 80.1 79.4 80.8 84.1 9 Nonferrous 96.7 94.5 96.7 99.3 118.5 118.3 118.2 118.1 81.6 79.8 81.8 84.1 10 Nonelectrical machinery 122.6 126.8 132.4 137.1 159.0 160.6 162.1 163.7 77.1 79.0 81.7 83.7 11 Electrical machinery 119.0 120.9 124.0 127.0 149.9 151.3 152.6 154.1 79.4 80.0 81.2 82.4 12 Motor vehicles and parts 105.7 103.6 111.4 120.6 151.2 152.9 154.5 155.8 69.9 67.7 72.1 77.4 13 Aerospace and miscellaneous transportation equipment 101.3 99.5 97.7 95.7 135.7 135.7 135.8 135.7 74.7 7733..33 7722..00 7700..55 14 Nondurable goods 105.4 105.4 106.1 106.5 128.3 128.7 129.1 129.6 82.2 81.9 82.1 82.2 15 Textile mill products 104.6 105.2 105.2 106.1 116.4 116.6 116.7 116.9 89.8 90.3 90.1 90.8 16 Paper and products 108.7 108.6 107.9 110.0 121.3 121.7 122.1 122.5 89.6 89.2 88.4 89.8 17 Chemicals and products 114.8 114.7 116.9 116.9 141.7 142.6 143.5 144.4 81.0 80.4 81.4 80.9 18 Plastics materials 109.8 110.5 106.6 111.7 127.8 128.3 128.8 129.5 85.9 86.2 82.8 86.2 19 Petroleum products 102.7 100.2 104.2 104.2 116.9 116.6 116.2 115.9 87.8 85.9 89.7 89.9 70 Mining 97.8 97.5 97.9 96.5 112.6 112.3 112.0 111.7 86.9 86.9 87.4 86.3 71 Utilities 111.1 110.9 114.7 116.0 130.9 131.4 131.8 132.2 84.8 84.5 87.1 87.8 22 Electric 110.7 110.6 114.3 115.2 127.4 127.9 128.5 129.0 86.9 86.4 89.0 89.3 1973 1975 Previous cycle2 Latest cycle3 1992 1992 1993 High Low High Low High Low May Dec. Jan. Feb. Mar. Apr. May" Capacity utilization rate (percent) 1 Total industry 99.0 82.7 87.3 71.8 84.8 78.3 80.1 81.0 81.2 81.5 81.6 81.6 81.6 2 Manufacturing 99.0 82.7 87.3 70.0 85.1 76.6 79.1 79.8 80.3 80.5 80.6 80.8 80.8 3 Primary processing 99.0 82.7 89.7 66.8 89.1 77.9 82.6 82.9 83.5 84.3 83.8 84.1 84.3 4 Advanced processing 99.0 82.7 86.3 71.4 83.3 76.1 77.5 78.6 78.9 79.0 79.3 79.4 79.4 5 Durable goods 99.0 82.7 86.9 65.0 83.9 73.8 76.8 78.2 78.9 79.4 79.4 79.6 79.6 6 Lumber and products 99.0 82.7 87.6 60.9 93.3 76.8 85.6 87.1 88.2 90.4 87.1 86.5 87.0 7 Primary metals 99.0 82.7 102.4 46.8 92.9 74.3 80.4 82.0 82.3 86.5 83.4 84.4 85.3 8 Iron and steel 99.0 82.7 110.4 38.3 95.7 72.3 80.1 82.7 82.4 87.0 82.9 85.0 86.2 9 Nonferrous 99.0 82.7 90.5 62.2 88.9 75.9 81.0 80.9 82.2 85.9 84.3 83.6 83.9 10 Nonelectrical machinery 99.0 82.7 92.1 64.9 83.7 73.0 77.5 82.3 82.8 83.5 84.9 86.0 86.6 11 Electrical machinery 99.0 82.7 89.4 71.1 84.9 76.8 79.7 81.6 82.0 82.5 82.9 82.7 83.1 12 Motor vehicles and parts 99.0 82.7 93.0 44.5 84.5 57.9 71.3 74.9 77.7 77.5 76.9 77.1 75.9 13 Aerospace and miscellaneous transportation equipment. 99.0 82.7 81.1 66.9 88.3 78.1 74.6 71.5 71.2 70.6 6699..88 6699..22 6688..88 14 Nondurable goods 99.0 82.7 87.0 76.9 86.8 80.4 82.2 82.0 82.2 82.1 82.3 82.4 82.5 15 Textile mill products 99.0 82.7 91.7 73.8 92.1 78.7 90.2 90.8 91.5 90.8 90.0 89.6 90.4 16 Paper and products 99.0 82.7 94.2 82.0 94.9 86.0 89.2 88.6 88.8 90.1 90.6 92.2 91.8 17 Chemicals and products 99.0 82.7 85.1 70.1 85.9 78.5 81.0 81.2 81.1 80.4 81.2 81.1 81.8 18 Plastics materials 99.0 82.7 90.9 63.4 97.0 75.5 86.2 80.5 86.0 85.3 87.4 87.5 87.2 19 Petroleum products 99.0 82.7 89.5 68.2 88.5 84.2 87.7 89.1 89.0 90.3 90.4 90.0 91.6 20 Mining 99.0 82.7 96.6 80.6 87.0 86.8 87.8 87.8 87.9 85.8 85.3 86.5 86.9 21 Utilities 99.0 82.7 88.3 76.2 92.6 83.4 84.9 88.5 85.4 88.9 89.0 86.0 85.6 22 Electric 99.0 82.7 88.3 78.7 94.8 87.4 86.9 90.4 87.7 90.3 90.0 87.4 87.0 1. Data in this table also appear in the Board's G.17 (419) monthly statistical Production Capacity and Capacity Utilization since 1987," Federal Reserve release. For ordering address, see inside front cover. For a detailed description of Bulletin, vol. 79, (June 1993), pp. 590-605. the series, see "Recent Developments in Industrial Capacity and Utilization," 2. Monthly highs, 1978 through 1980; monthly lows, 1982. Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial 3. Monthly highs, 1988-89; monthly lows, 1990-91. 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 pro- 1992 Group por- avg. tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar/ Apr.r Mayp Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 106.5 106.7 106.0 106.8 106.6 106.2 107.5 108.4 108.9 109.3 109.9 110.1 110.2 110.4 2 Products 60.8 105.6 105.7 104.8 105.7 105.9 105.3 107.1 107.8 108.2 108.5 109.2 109.5 109.5 109.6 4 3 5 6 7 8 Fin C a o l D n p u s A r u r o a u m d A b t u e o l u e r A c m t t o g u c s o s o o t t o o n i a v s d s n , e u d s , c m p o t t r r e o n o u r t s d c a u g l u k m o s c o t e s d r s 4 2 6 2 5 6 1 . . . . . . 0 5 0 6 9 5 1 1 1 9 9 7 0 0 0 9 9 6 8 5 2 . . . . . . 4 0 2 9 2 5 1 1 1 1 1 8 0 0 0 0 0 5 8 2 5 2 5 . . . . . . 3 3 9 8 1 6 1 1 1 9 9 8 0 0 0 6 9 3 7 4 2 . . . . . . 5 0 5 1 0 0 1 1 1 9 9 8 0 0 0 1 5 8 4 8 2 . . . . . . 2 3 8 1 9 8 1 1 1 9 9 7 0 0 0 9 6 7 1 5 8 . . . . . . 5 0 0 9 1 9 1 1 1 9 9 7 0 0 0 3 7 7 4 8 0 . . . . . . 5 9 3 4 1 9 1 1 1 1 1 7 0 1 0 0 0 8 3 0 4 1 6 . . . . . . 5 1 1 1 5 4 1 1 1 1 1 7 0 0 0 1 0 9 7 2 5 1 4 . . . . . . 6 1 9 7 0 1 1 1 1 1 1 8 0 0 1 1 0 6 7 7 1 1 8 . . . . . . 9 5 9 5 7 7 1 1 1 1 1 8 0 1 1 1 1 6 7 1 0 6 2 . . . . . . 6 6 9 9 8 7 1 1 1 1 1 9 0 1 1 1 1 0 8 1 2 4 1 . . . . . . 2 5 3 4 6 9 1 1 1 1 1 9 1 1 1 0 1 0 3 1 1 8 2 . . . . . . 5 4 2 2 8 8 1 1 1 1 1 9 0 1 1 1 1 0 8 1 2 4 2 . . . . . . 2 4 7 9 3 0 1 1 1 1 1 8 0 1 1 1 0 6 8 2 0 0 9 . . . . . . 5 3 9 1 6 6 9 Trucks, consumer .6 127.9 131.2 119.2 119.8 128.8 120.4 141.3 143.3 154.6 169.1 156.9 153.1 155.9 150.9 10 Auto parts and allied goods.. 1.0 103.7 104.4 103.2 104.6 105.3 103.7 105.9 106.0 103.8 105.8 107.4 107.5 108.1 108.7 11 Other 33..11 105.2 107.9 104.6 106.3 104.0 104.1 104.9 107.1 107.2 109.3 110.7 111.1 111.6 111.6 12 Appliances, A/C, and TV.... ..88 110.4 116.8 109.6 109.7 111.0 112.9 110.8 110.8 110.5 116.0 117.6 122.9 122.5 122.9 13 Carpeting and furniture .9 99.9 102.7 98.0 101.7 97.7 98.2 98.5 103.7 105.4 105.5 106.7 104.3 104.6 105.6 14 Miscellaneous home goods .. 1.4 105.6 106.3 106.0 107.4 104.1 102.9 105.8 107.1 106.6 108.0 109.5 108.9 109.9 109.1 15 Nondurable consumer goods 20.4 105.9 105.9 104.6 105.5 106.0 105.3 107.1 107.5 107.4 106.7 107.7 108.1 107.5 107.7 16 Foods and tobacco 9.1 104.7 104.7 103.3 105.0 107.0 104.9 105.9 105.2 104.8 104.6 105.5 105.1 105.2 105.0 17 Clothing 2.6 95.0 95.7 94.5 95.1 94.0 94.3 94.5 95.9 96.0 95.7 95.0 94.6 95.0 95.2 18 Chemical products 3.5 118.7 118.1 117.6 117.3 116.5 118.5 121.1 123.3 121.7 122.4 121.1 123.5 123.0 124.4 19 Paper products 2.5 100.8 101.0 100.6 100.1 100.2 100.4 100.1 100.9 100.9 100.2 101.8 102.1 101.6 101.4 20 Energy 2.7 108.3 107.8 105.2 106.3 105.6 104.6 111.1 112.0 114.4 109.5 115.5 116.1 112.0 112.5 21 Fuels .7 104.7 104.8 103.8 104.1 98.9 103.5 109.8 107.7 106.1 106.5 108.9 107.1 106.1 109.0 22 Residential utilities 2.0 109.6 108.9 105.8 107.2 108.2 105.1 111.6 113.6 117.5 110.7 118.0 119.6 114.3 113.9 23 Equipment 20.0 112.7 112.0 111.6 112.7 114.3 113.5 115.4 116.7 117.2 118.1 118.0 118.6 119.3 119.5 24 Business equipment 13.9 123.2 122.1 121.9 123.7 126.1 125.0 127.5 129.0 129.6 131.2 131.7 133.2 134.2 134.5 25 Information processing and related . 5.6 134.7 131.4 134.3 137.4 138.5 138.2 142.2 142.9 143.2 144.4 146.1 149.0 150.7 152.0 26 Office and computing 1.9 168.3 162.1 167.3 171.8 173.7 178.3 183.1 184.5 186.4 192.0 198.0 203.8 209.5 215.1 27 Industrial 4.0 108.5 108.4 108.7 109.1 109.2 109.6 110.1 112.0 112.3 113.1 112.2 113.0 113.8 114.5 28 Transit 2.5 137.1 136.9 133.9 135.3 143.3 134.5 137.4 140.4 144.1 146.7 146.5 145.0 144.0 141.5 29 Autos and trucks 1.2 117.9 123.3 117.2 114.2 117.3 114.7 121.7 123.9 131.4 136.7 136.8 135.8 136.2 133.1 30 Other 1.9 104.7 106.5 99.2 100.2 105.6 107.3 108.8 110.7 109.2 112.6 113.4 114.9 116.5 116.5 31 Defense and space equipment 5.4 85.9 87.2 86.5 85.1 84.5 84.4 83.5 83.2 82.5 82.0 81.5 80.8 80.6 80.2 32 Oil and gas well drilling .6 78.3 75.4 73.1 73.8 75.6 76.3 82.7 86.4 91.2 89.0 77.9 71.1 72.4 75.1 33 Manufactured homes .2 99.7 92.5 90.1 101.3 96.9 100.9 110.4 118.5 128.6 129.4 127.1 116.2 114.9 114.7 34 Intermediate products, total 14.7 97.6 97.9 97.7 98.6 97.0 96.9 97.8 98.1 98.3 98.2 99.3 99.6 99.4 99.6 35 Construction supplies 6.0 93.8 95.3 93.6 94.3 94.1 93.0 94.7 95.1 94.5 94.8 97.5 96.3 96.0 96.7 36 Business supplies 8.7 100.1 99.6 100.6 101.4 99.0 99.5 99.9 100.0 100.8 100.5 100.5 101.8 101.8 101.5 37 Materials 39.2 107.9 108.0 107.8 108.5 107.6 107.4 108.1 109.3 110.0 110.4 110.9 110.9 111.3 111.6 38 Durable goods materials 19.4 108.9 109.0 108.7 109.3 108.9 107.6 109.7 111.1 111.9 113.3 114.2 114.0 114.5 115.1 39 Durable consumer parts 4.2 101.5 101.5 101.5 100.6 101.4 98.5 101.8 104.3 107.5 110.8 111.8 112.3 112.5 113.3 40 Equipment parts 7.3 116.5 116.1 116.6 117.7 117.1 116.2 118.3 119.3 119.7 120.4 121.0 121.2 122.2 122.9 41 Other 7.9 106.0 106.5 105.4 106.3 105.5 104.6 106.2 107.4 107.5 108.6 109.7 108.8 109.2 109.5 42 Basic metal materials 2.8 108.3 109.2 107.8 108.7 107.7 105.8 108.3 109.8 108.8 110.4 113.2 109.9 111.0 112.0 43 Nondurable goods materials 9.0 110.9 111.5 111.5 111.5 110.7 111.7 110.7 112.0 111.5 112.4 112.1 112.7 113.8 114.0 44 Textile materials 1.2 102.8 102.4 101.8 107.7 101.6 103.3 102.7 103.4 102.9 104.2 103.2 104.1 103.6 103.8 45 Pulp and paper materials 1.9 109.9 109.6 110.8 110.3 108.7 112.3 109.1 110.2 110.7 110.7 111.9 112.8 115.4 114.7 46 Chemical materials 3.8 114.2 115.5 114.8 114.1 114.5 114.5 114.4 115.6 114.6 114.9 114.6 115.6 115.9 117.1 47 Other 2.1 110.4 110.9 111.6 110.0 110.5 110.5 109.7 112.0 111.3 114.1 112.5 112.3 113.9 113.4 48 Energy materials 10.9 103.4 103.3 103.1 104.4 102.5 103.6 103.0 103.9 105.1 103.4 103.8 103.5 103.1 103.0 49 Primary energy 7.2 99.7 99.5 99.6 100.4 99.4 99.6 99.4 100.2 101.3 100.4 98.3 97.4 98.3 98.3 50 Converted fuel materials 3.7 110.6 110.6 109.9 112.3 108.7 111.4 110.0 111.1 112.4 109.1 114.6 115.4 112.6 112.2 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 106.6 106.6 106.1 107.0 106.7 106.3 107.4 108.4 108.6 108.9 109.5 109.7 109.9 110.2 52 Total excluding motor vehicles and parts.. 95.3 106.6 106.6 106.1 107.0 106.7 106.4 107.5 108.4 108.6 108.7 109.3 109.6 109.7 110.0 53 Total excluding office and computing machines 97.5 105.0 105.3 104.6 105.3 105.0 104.5 105.7 106.6 107.1 107.3 107.8 107.8 107.9 107.9 54 Consumer goods excluding autos and trucks 24.5 105.7 106.1 104.6 105.5 105.7 105.1 106.8 107.4 107.3 107.0 108.1 108.4 108.0 108.2 55 Consumer goods excluding energy 23.3 104.8 105.6 103.9 104.7 105.0 104.3 105.9 106.6 106.8 107.4 107.7 107.9 108.0 107.9 56 Business equipment excluding autos and trucks 12.7 123.7 122.0 122.3 124.5 126.9 125.9 128.0 129.5 129.5 130.7 131.3 132.9 134.0 134.7 57 Business equipment excluding office and computing equipment 12.0 115.7 115.3 114.3 115.6 118.1 116.1 118.1 119.7 120.1 121.0 120.6 121.3 121.5 121.0 58 Materials excluding energy 28.4 109.5 109.8 109.5 110.0 109.4 108.8 110.0 111.4 111.8 113.0 113.6 113.6 114.3 114.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • August 1993 2.13—Continued „ 1987 1992 1993 uroup c S o I d C e p p r o o r - - a 1 v 99 g 2 . tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar.r Apr.r Mayp Index (1987 = 100) MAJOR INDUSTRIES 1 Total index 100.0 106.5 106.7 106.0 106.8 106.6 106.2 107.5 108.4 108.9 109.3 109.9 110.1 110.2 110.4 2 Manufacturing 84.3 106.9 107.1 106.5 107.1 107.0 106.8 108.0 108.9 109.2 109.9 110.5 110.7 111.2 111.4 3 Primary processing 27.1 103.8 104.2 103.7 104.3 103.5 103.3 104.1 105.1 105.0 105.8 106.9 106.3 106.9 107.2 4 Advanced processing 57.1 108.3 108.4 107.9 108.4 108.7 108.4 109.9 110.7 111.3 111.9 112.2 112.9 113.3 113.4 5 Durable goods 46.5 108.1 108.4 107.6 108.2 108.5 108.1 109.8 110.9 111.8 112.9 113.8 114.0 114.6 114.8 6 Lumber and products .. "'24 2.1 96.4 96.1 93.8 96.6 96.6 94.7 97.8 99.8 98.0 99.3 101.8 98.1 97.5 98.1 7 Furniture and fixtures .. 25 1.5 99.0 101.0 94.2 97.5 99.2 100.5 100.4 102.3 103.9 105.2 106.0 107.0 107.1 106.9 8 Clay, glass, and stone products 32 2.4 96.0 97.4 95.6 96.8 95.7 96.5 96.8 97.6 98.0 97.0 98.9 98.4 99.4 99.5 9 Primary metals 33 3.3 101.1 101.1 101.2 100.6 100.5 98.0 100.5 101.6 102.4 102.8 108.0 104.2 105.4 106.5 10 Iron and steel 331,2 1.9 104.7 104.8 103.8 104.7 103.8 102.0 104.1 103.6 107.4 107.0 112.9 107.6 110.4 112.0 11 Raw steel .1 101.2 101.9 101.6 101.7 99.1 98.9 99.8 102.8 104.6 103.4 105.9 102.0 102.6 106.6 12 Nonferrous 333-6,9 1.4 96.1 95.9 97.5 95.0 96.1 92.4 95.6 98.7 95.7 97.1 101.4 99.5 98.6 98.9 13 Fabricated metal products 34 5.4 96.7 97.2 97.1 97.0 97.0 96.5 97.5 97.6 97.8 99.8 99.7 100.3 100.6 100.1 14 Industrial and commercial machinery and computer equipment. 35 8.5 124.8 123.2 123.8 125.7 126.9 127.9 130.6 132.8 133.8 135.0 136.7 139.5 141.8 143.4 15 Office and computing machines 357 2.3 168.3 162.1 167.3 171.8 173.7 178.3 183.1 184.5 186.4 192.0 198.0 203.8 209.5 215.1 16 Electrical machinery 36 6.9 119.8 119.5 119.3 120.7 120.6 121.5 122.6 124.4 124.8 125.8 127.1 128.2 128.3 129.4 17 Transportation equipment 37 9.9 102.6 104.5 102.7 101.4 102.4 100.5 103.0 103.6 106.3 108.4 107.8 107.0 106.8 105.7 18 Motor vehicles and parts 371 4.8 104.8 107.9 104.8 103.1 105.0 102.6 108.0 109.9 116.2 120.9 120.7 120.1 120.7 119.0 19 Autos and light trucks 2.2 101.4 107.9 102.7 100.8 99.7 97.9 104.1 105.4 114.4 118.2 117.8 116.9 117.5 113.1 20 Aerospace and miscellaneous transportation equipment. 372-6,9 5.1 100.6 101.3 100.8 99.8 100.0 98.6 98.3 97.7 97.1 96.7 95.8 94.7 93.8 93.3 21 Instruments 38 5.1 104.2 105.1 104.4 104.9 104.3 103.7 103.7 103.6 103.3 103.0 102.2 103.1 102.7 102.2 22 Miscellaneous 39 1.3 109.7 110.2 109.7 111.6 109.1 108.7 110.5 111.4 111.8 110.9 111.9 112.6 114.4 113.3 23 Nondurable goods 37.8 105.4 105.4 105.2 105.7 105.2 105.2 105.8 106.4 106.0 106.4 106.4 106.7 107.1 107.3 24 Foods "'20 8.8 106.0 106.1 105.4 105.9 106.3 105.6 106.8 106.4 106.2 105.9 106.9 106.8 107.1 106.4 25 Tobacco products 21 1.0 99.2 97.9 96.4 101.5 115.5 101.7 102.4 101.9 96.1 100.5 99.3 97.4 98.7 100.9 26 Textile mill products 22 1.8 104.7 105.0 103.8 107.0 103.5 105.1 103.5 106.0 106.0 106.9 106.2 105.3 104.9 105.8 27 Apparel products 23 2.3 92.3 93.5 91.7 92.7 91.3 91.5 91.7 92.9 92.7 93.1 92.5 92.1 92.1 91.9 28 Paper and products 26 3.6 108.2 108.2 108.7 109.1 107.1 109.5 107.3 108.2 108.3 108.6 110.4 111.1 113.2 112.9 29 Printing and publishing. 27 6.5 95.0 94.5 95.6 95.7 93.5 94.1 94.5 94.2 94.7 94.7 94.0 94.7 94.9 95.0 30 Chemicals and products . 28 8.8 115.0 114.8 114.9 114.6 114.4 115.2 116.2 117.7 116.7 116.8 116.2 117.6 117.6 119.0 31 Petroleum products 29 1.3 102.0 102.5 101.8 101.5 98.0 101.1 105.3 103.9 103.4 103.2 104.7 104.7 104.2 105.9 32 Rubber and plastic products 30 3.2 109.7 110.3 109.7 110.7 110.7 108.5 109.9 111.3 111.3 113.6 112.7 112.5 112.7 112.6 33 Leather and products .. 31 .3 92.6 91.8 92.3 93.6 92.0 93.8 95.1 96.6 96.7 97.1 99.0 99.0 99.8 98.4 34 Mining 8.0 97.6 98.8 97.1 98.5 97.0 97.1 97.6 97.8 98.2 98.3 95.9 95.3 96.5 96.9 35 Metal "lO .3 161.7 172.2 157.8 156.5 165.5 159.8 168.1 171.6 158.1 167.7 163.0 158.1 164.2 163.8 36 Coal 11,12 1.2 105.5 109.5 101.9 108.0 103.9 103.6 103.8 103.5 107.9 108.2 101.7 102.3 108.2 106.0 37 Oil and gas extraction 13 5.8 92.6 92.5 93.1 93.6 91.9 92.7 92.7 92.8 93.4 92.7 90.9 90.4 90.5 91.4 38 Stone and earth minerals .. 14 .7 93.8 96.9 92.7 94.1 93.8 91.9 93.6 94.4 92.6 93.8 95.2 93.6 92.7 94.6 39 Utilities 7.7 112.0 111.2 110.0 111.2 110.4 111.2 112.7 114.7 116.8 112.8 117.5 117.8 113.8 113.4 40 Electric 49I,3PT 6.1 111.6 110.8 109.5 110.8 110.0 110.9 112.6 114.1 116.4 112.9 116.5 116.3 113.0 112.7 41 Gas 492,3PT 1.6 113.2 112.6 112.0 112.8 112.1 112.0 113.2 117.3 118.2 112.4 121.4 123.3 116.7 116.2 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.5 107.0 107.0 106.6 107.4 107.2 107.1 108.0 108.8 108.8 109.3 109.8 110.2 110.6 111.0 43 Manufacturing excluding office and computing machines 81.9 105.1 105.5 104.8 105.3 105.1 104.8 105.9 106.7 107.0 107.6 108.0 108.1 108.4 108.5 Gross value (billions of 1987 dollars, annual rates) MAJOR MARKETS 44 Products, total 1,707.0 1,806.4 1,814.8 1,794.6 1,806.8 1,802.7 1,799.9 1,835.6 1,846.7 1,857.5 1,864.9 1,880.2 1,880.0 1,881.0 1,880.6 45 Final 1,314.6 1,420.1 1,426.9 1,408.8 1,416.7 1,417.8 1,415.7 1,448.1 1,457.1 1,466.8 1,476.4 1,485.7 1,484.3 1,485.9 1,485.7 46 Consumer goods 866.6 913.0 920.1 906.6 912.6 908.1 905.1 928.4 931.6 936.3 940.0 949.4 946.6 945.7 945.6 47 Equipment 448.0 507.1 506.8 502.2 504.1 509.7 510.6 519.7 525.5 530.5 536.5 536.3 537.7 540.2 540.2 48 Intermediate 392.5 386.4 387.9 385.9 390.1 385.0 384.2 387.4 389.6 390.7 388.4 394.5 395.7 395.1 394.8 1. Data in this table also appear in the Board's G.17 (419) monthly statistical was released in May 1993. See "Industrial Production, Capacity, and Capacity release. For ordering address, see inside front cover. Utilization since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605. A revision of the industrial production index and the capacity utilization rates 2. Standard industrial classification. 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 11999922 July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,111 949 1,095 1,083 1,081 1,120 1,141 1,136 1,196 1,157 1,141 1,034 1,101 2 One-family 794 754 911 882 885 918 954 963 1,037 972 957 871 925 3 Two-or-more-family 317 195 184 201 196 202 187 173 159 185 184 163 176 4 Started 1,193 1,014 1,200 1,106 1,229 1,218 1,226 1,226 1,286 1,171 1,180 1,124 1,215 5 One-family 895 840 1,030 961 1,038 1,045 1,079 1,089 1,133 1,051 1,036 987 1,067 6 Two-or-more-family . 298 174 169 145 191 173 147 137 153 120 144 137 148 7 Under construction at end of period . 711 606 612 628 633 637 645 641 644 641 641 636 638 8 One-family 449 434 473 474 479 485 493 498 501 506 508 504 507 9 Two-or-more-family 262 173 140 154 154 152 152 143 143 135 133 132 131 10 Completed 1,308 1,091 1,158 1,234 1,133 1,128 1,137 1,229 1,227 1,136 1,241 1,113 1,191 11 One-family 966 838 964 1,026 945 942 964 1,002 1,016 980 1,049 999 1,063 12 Two-or-more-family 342 253 194 208 188 186 173 227 211 156 192 114 128 13 Mobile homes shipped 188 171 210 210 202 217 228 244 266 267 262 247 241 Merchant builder activity in one-family units 14 Number sold 535 507 610 622 625 672 637 615 662 603r 603 612 751 15 Number for sale at end of period1 .. 321 284 265 271 270 267 264 262 265 266 268 270 270 Price of units sold (thousands of dollars)1 1 1 6 7 A M v e e d r i a a g n e 1 1 2 4 2 9 . . 3 0 1 1 2 4 0 7 . . 0 0 1 1 2 4 1 4 . . 3 9 1 13 1 7 8 . . 7 0 1 1 2 4 3 5 . . 5 3 1 14 1 2 9 . . 2 5 1 1 2 4 5 8 . . 0 4 1 14 2 7 8 . . 2 9 1 1 2 4 6 6 . . 0 2 1 1 1 3 8 8 . . 0 9 r 1 15 2 0 9 . . 3 5 1 1 2 4 5 5 . . 0 0 1 14 2 6 7 . . 4 5 EXISTING UNITS (one-family) 18 Number sold 3,211 3,219 3,520 3,380 3,340 3,380 3,710 3,860 4,040 3,780 3,460 3,370 3,450 Price of units sold (thousands of dollars)2 19 Median 95.2 99.7 103.6 102.8 105.0 103.5 103.4 102.7 104.2 103.1 103.6 105.1 105.8 20 Average 118.3 127.4 130.8 132.2 132.4 131.0 129.3 128.8 131.0 129.4 129.6 131.5 133.0 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 442,066 400,955 426,657 425,700 419,598 429,291 432,250 436,140 439,948 441,344 446,712 446,231 444,352 22 Private 334,153 290,707 308,246 305,848 301,984 308,813 315,855 317,451 320,720 327,790 331,809 330,293 328,148 2 2 2 2 2 2 5 6 3 4 8 7 N Re o C P I O s n n u i o t r d d b h e m e u l e s n i s m r i c t t d r i e b e u a i r u a n l t c l i i t l i l i i b d a a t l u i i l n e , i b s l g u t d s o a i i l t n n d a g d l i s n o g t s h er 1 1 2 6 4 2 5 8 3 2 2 1 1 2 , , , , , , 8 9 8 5 2 8 4 9 9 6 9 5 9 1 7 6 1 6 1 1 2 4 4 2 5 3 2 8 1 0 7 2 , , , , , , 2 4 3 7 8 8 8 8 1 9 3 7 1 2 0 7 7 0 1 1 2 4 4 2 8 2 0 2 0 1 4 4 , , , , , , 1 4 0 5 1 1 7 1 2 1 1 1 3 7 7 5 4 9 1 1 2 3 4 2 8 2 0 9 1 2 1 4 , , , , , , 5 9 8 2 1 6 9 6 8 7 2 8 4 2 8 6 8 6 1 1 4 3 2 1 8 1 1 7 1 7 4 7 , , , , , , 3 0 8 5 2 7 9 6 1 0 1 8 3 2 0 1 8 3 1 1 4 3 2 8 1 2 2 9 2 6 9 2 , , , , , , 0 3 0 3 4 0 3 5 4 6 7 1 3 0 3 8 0 9 1 1 4 4 2 1 2 9 0 2 1 8 3 2 , , , , , , 1 9 5 6 3 5 9 1 4 4 0 5 5 6 5 6 2 3 1 1 4 4 2 1 9 2 1 1 0 9 4 2 , , , , , , 6 5 3 0 8 6 4 4 7 8 0 5 6 2 9 3 1 0 1 1 3 4 2 1 9 2 3 8 1 8 8 2 , , , , , , 7 3 3 7 5 1 6 2 3 2 7 8 5 6 8 1 0 2 2 1 4 0 3 2 1 2 4 4 0 9 8 3 , , , , , , 7 7 3 1 0 7 5 9 1 3 5 6 7 5 4 3 6 8 2 1 0 4 4 2 1 2 4 1 4 2 9 6 , , , , , , 9 1 3 0 3 8 8 5 0 5 1 2 1 0 5 5 8 8 2 1 0 3 4 2 1 2 4 9 4 2 9 5 , , , , , , 9 2 6 1 2 3 8 7 9 3 0 0 6 5 7 5 0 7 2 1 4 0 4 2 1 2 0 2 4 3 5 8 , , , , , , 0 2 1 2 9 4 4 7 3 4 0 5 1 4 8 2 7 3 29 Public 107,909 110,247 118,408 119,853 117,614 120,478 116,395 118,689 119,229 113,554 114,903 115,938 116,204 3 3 3 3 0 1 2 3 O M H Co t i i g h l n i h e s t r a w e r r a y v y a tion and development... 6 3 9 2 1 4 , , , , 4 6 1 6 8 0 6 5 4 7 4 4 2 73 9 4 1 , , , , 5 9 9 8 3 1 5 3 4 8 8 7 3 7 2 2 7 5 , , , , 4 7 1 9 8 5 8 7 4 9 7 8 7 3 9 2 2 5 , , , , 3 6 0 7 7 8 2 7 2 2 7 2 3 7 2 3 6 5 , , , , 4 4 3 3 3 5 4 8 8 1 3 2 3 76 4 3 6 , , , , 2 1 6 3 9 7 5 6 1 2 1 4 3 7 2 2 6 5 , , , , 4 0 2 6 3 5 7 3 8 6 1 0 3 7 2 4 6 5 , , , , 6 6 2 2 1 3 1 3 2 6 0 1 3 7 2 1 8 7 , , , , 4 2 2 2 8 3 3 7 3 7 7 2 2 7 9 2 5 5 , , , , 8 4 5 7 1 5 7 0 1 9 6 8 3 7 2 1 6 4 , , , , 4 3 6 5 0 1 6 1 6 9 1 7 3 7 2 7 1 4 , , , , 9 0 3 5 4 4 7 7 8 0 6 4 3 7 2 2 6 4 , , , , 9 4 6 1 0 4 9 7 2 1 0 1 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 • August 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 llleeevvveeelll,,, IIIttteeemmm 1992 1993 19931 MMMaaayyy 11999922 11999933 111999999333111 MMaayy MMaayy June Sept. Dec. Mar. Jan. Feb. Mar. Apr. May CONSUMER PRICES2 (1982-84=100) 1 All items 3.0 3.2 2.6 2.6 3.2 4.0 .5 .3 .1 .4 .1 144.2 2 Food .4 2.7 -1.2 3.2 1.4 2.6 .4 .1 .1 .4 .4 141.1 3 Energy items .3 2.0 8.6 1.2 1.9 3.1 .5 -.4 .7 .2 -1.0 104.4 4 All items less food and energy 3.8 3.4 2.8 2.5 3.8 4.3 .5 .5 .1 .4 .2 151.7 5 Commodities 3.0 2.3 2.5 1.8 1.5 4.6 .5 .5 .1 .3 .0 135.7 6 Services 4.2 4.0 3.1 2.9 4.7 4.4 .4 .4 .2 .4 .3 161.0 PRODUCER PRICES (1982=100) 7 Finished goods 1.1 2.0 3.3 1.3 -.3 3.9 •3r .2r .4 .6 .0 125.7 8 Consumer foods -2.1 2.9 -.6 4.3 3.3 -2.2 -.6r -.5r .5 1.4 -.1 126.7 9 Consumer energy -.3 2.2 16.6 -3.5 -10.2 17.2 1.0 1.7 1.3 .1 -.6 79.5 10 Other consumer goods 3.5 1.7 2.4 1.5 1.2 2.9 .4 .3 .1 .4 .2 139.9 11 Capital equipment 2.0 1.6 .9 1.2 .6 3.4 ,5r ,2r .2 .2 .2 131.1 Intermediate materials 12 Excluding foods and feeds .4 1.6 5.0 .7 -2.1 5.3 .y .6r .3 .1 -.2 116.5 13 Excluding energy .4 1.5 1.7 1.3 -.3 4.3 .4r .4r .2 .2 -.2 123.7 Crude materials 14 Foods -.3 3.4 2.7 -4.8 5.1 1.1 ,5r ~.3r .1 2.5 .5 112.1 15 Energy -2.3 4.7 51.5 19.8 -17.8 -9.7 -1.5r -1.8r .8 -.6 4.8 81.0 16 Other -1.3 9.4 4.8 2.2 1.9 25.0 3.4r 1.9* .4 1.8 .4 141.9 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 1992 1993 Account 11999900 11999911 11999922 Q1 Q2 Q3 Q4 QLR GROSS DOMESTIC PRODUCT 1 Total 5,522.2 5,677.5 5,950.7 5,840.2 5,902.2 5,978.5 6,081.8 6,145.8 By source 3.748.4 3,887.7 4,095.8 4,022.8 4,057.1 4.108.7 4,194.8 4.234.7 2 Personal consumption expenditures 464.3 446.1 480.4 469.4 470.6 482.5 499.1 498.8 4 5 3 D N Se u o r r n v a d i b c u l e r e s a g b o le o d g s o ods 2 1 , . 0 2 5 2 9 4 . . 7 5 2 1 , , 1 2 9 5 0 1 . . 1 5 2 1 , , 3 2 2 9 4 0 . . 7 7 2 1 , , 2 2 7 7 9 4 . . 3 1 2 1 , , 3 2 0 7 9 7 . . 0 5 2 1 , . 3 2 3 9 3 2 . . 3 8 2 1 , , 3 3 7 1 7 8 . . 1 6 2 1 , . 4 3 1 2 5 0 . . 1 8 6 Gross private domestic investment 799.5 721.1 770.4 722.4 773.2 781.6 804.3 844.0 7 Fixed investment 793.2 731.3 766.0 738.2 765.1 766.6 794.0 809.0 8 Nonresidential 577.6 541.1 548.2 531.0 550.3 549.6 562.1 573.8 9 Structures 201.1 180.1 168.4 170.1 170.3 166.1 167.0 168.0 1 1 0 1 Re P si r d o e d n u t c ia e l r s s ' tr d u u c r t a u b r l e e s equipment 3 2 7 1 6 5 . . 5 6 3 1 6 9 0 0 . . 9 3 3 2 7 1 9 7 . . 9 7 3 2 6 0 0 7 . . 8 2 3 21 8 4 0 . . 8 0 3 2 8 1 3 7 . . 5 0 3 2 9 3 5 1 . . 1 9 4 2 0 3 5 5 . . 8 2 12 Change in business inventories 6.3 -10.2 4.4 -15.8 8.1 15.0 10.3 34.9 13 Nonfarm 3.3 -10.3 2.2 -13.3 6.4 9.7 6.2 32.6 14 Net exports of goods and services -68.9 -21.8 -30.4 -8.1 -37.1 -36.0 -40.5 -49.4 15 Exports 557.0 598.2 636.3 628.1 625.4 639.0 652.7 649.4 16 Imports 625.9 620.0 666.7 636.2 662.5 675.0 693.2 698.9 17 Government purchases of goods and services .. 1,043.2 1,090.5 1,114.9 1,103.1 1,109.1 1,124.2 1,123.3 1,116.6 18 Federal 426.4 447.3 449.1 445.0 444.8 455.2 451.6 441.1 19 State and local 616.8 643.2 665.8 658.0 664.3 669.0 671.7 675.4 By major type of product 20 Final sales, total 5,515.9 5.687.7 5,946.3 5,855.9 5.894.1 5.963.5 6,071.5 6,110.8 21 Goods 2,160.1 2.192.8 2.260.3 2,233.6 2.233.2 2,258.4 2,316.1 2,309.2 22 Durable 920.6 907.6 943.9 923.6 932.3 943.8 975.8 968.8 23 Nondurable 1,239.5 1,285.1 1.316.4 1,310.0 1,300.8 1.314.6 1,340.3 1,340.4 24 Services 2,846.4 3,030.3 3,197.1 3,142.2 3,173.4 3,217.8 3,255.1 3,299.4 25 Structures 509.4 464.7 488.8 480.1 487.6 487.3 500.3 502.3 26 Change in business inventories 6.3 -10.2 4.4 -15.8 8.1 15.0 10.3 34.9 27 Durable goods -.9 -19.3 -3.5 -19.3 9.5 2.7 -6.9 17.8 28 Nondurable goods 7.2 9.0 7.9 3.5 -1.4 12.3 17.2 17.2 MEMO 29 Total GDP in 1987 dollars 4,877.5 4,821.0 4,922.6 4,873.7 4,892.4 4,933.7 4,990.8 4,999.9 NATIONAL INCOME 30 Total 4,468.3 4,544.2 4,743.4 4,679.4 4,716.5 4,719.6 4,858.0 4,919.5 31 Compensation of employees 3,291.2 3,390.8 3,525.2 3,476.3 3,506.3 3,534.3 3,583.7 3,628.4 32 Wages and salaries 2,742.9 2,812.2 2,916.6 2,877.6 2,901.3 2,923.5 2,963.9 2,999.8 33 Government and government enterprises .. 514.8 543.5 562.5 554.6 561.4 564.3 569.6 578.2 34 Other 2,228.0 2,268.7 2,354.1 2,323.0 2,339.9 2,359.1 2,394.3 2,421.6 35 Supplement to wages and salaries 548.4 578.7 608.6 598.7 605.0 610.8 619.8 628.6 36 Employer contributions for social insurance 277.4 290.4 302.9 299.4 301.5 302.9 307.6 312.0 37 Other labor income 271.0 288.3 305.7 299.2 303.6 307.9 312.2 316.5 38 Proprietors' income1 366.9 368.0 404.5 393.6 398.4 397.4 428.4 441.9 39 Business and professional1 325.2 332.2 364.9 353.6 359.9 365.9 380.4 389.0 40 Farm1 41.7 35.8 39.5 40.1 38.5 31.5 48.1 52.9 41 Rental income of persons2 -12.3 -10.4 4.7 -4.5 3.3 6.4 13.6 17.7 42 Corporate profits1 361.7 346.3 393.8 384.0 388.4 374.1 428.5 429.6 43 Profits before tax3 355.4 334.7 371.6 366.1 376.8 354.1 389.4 398.3 44 Inventory valuation adjustment -14.2 3.1 -7.4 -5.4 -15.5 -9.7 1.0 -9.4 45 Capital consumption adjustment 20.5 8.4 29.5 23.3 27.0 29.7 38.1 40.6 46 Net interest 460.7 449.5 415.2 430.0 420.0 407.3 403.6 402.0 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 • August 1993 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1992 1993 AAccccoouunntt 11999900 11999911 11999922 Qi Q2 Q3 Q4 Qlr PERSONAL INCOME AND SAVING 1 Total personal income 4,664.2 4,828.3 5,058.1 4,980.5 5,028.9 5,062.0 5,160.9 5,237.6 2 Wage and salary disbursements 2,742.8 2,812.2 2,918.1 2,877.6 2,901.3 2,923.5 2,969.9 3,005.8 3 Commodity-producing industries 745.6 737.4 743.2 736.8 743.1 742.4 750.6 754.4 4 Manufacturing 556.1 556.9 565.7 559.9 564.7 565.5 572.8 576.5 5 Distributive industries 634.6 647.4 666.8 660.9 662.9 667.7 675.8 685.0 6 Service industries 847.8 883.9 945.5 925.3 933.9 949.1 973.9 988.2 7 Government and government enterprises 514.8 543.6 562.5 554.6 561.4 564.3 569.6 578.2 8 Other labor income 271.0 288.3 305.7 299.2 303.6 307.9 312.2 316.5 9 Proprietors' income 366.9 368.0 404.5 393.6 398.4 397.4 428.4 441.9 10 Business and professional 325.2 332.2 364.9 353.6 359.9 365.9 380.4 389.0 41.7 35.8 39.5 40.1 38.5 31.5 48.1 52.9 12 Rental income of persons2 -12.3 -10.4 4.7 -4.5 3.3 6.4 13.6 17.7 13 Dividends 140.3 137.0 139.3 133.9 136.6 141.0 145.8 149.9 14 Personal interest income 694.5 700.6 670.2 684.8 675.2 663.2 657.8 656.4 15 Transfer payments 685.8 771.1 866.1 842.7 859.7 874.1 888.0 909.9 16 Old-age survivors, disability, and health insurance benefits ... 352.0 382.0 414.1 405.7 412.1 417.1 421.6 434.1 17 LESS: Personal contributions for social insurance 224.8 238.4 250.6 246.8 249.3 251.5 254.8 260.4 18 EQUALS: Personal income 4,664.2 4,828.3 5,058.1 4,980.5 5,028.9 5,062.0 5,160.9 5,237.6 19 LESS: Personal tax and nontax payments 621.3 618.7 627.3 619.6 617.1 628.8 643.6 656.0 20 EQUALS: Disposable personal income 4,042.9 4,209.6 4,430.8 4,360.9 4,411.8 4,433.2 4,517.3 4,581.7 21 LESS: Personal outlays 3,867.3 4,009.9 4,218.1 4,146.3 4,179.5 4,229.9 4,316.9 4,358.8 22 EQUALS: Personal saving 175.6 199.6 212.6 214.6 232.3 203.3 200.4 222.9 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,513.0 19,077.1 19,271.4 19,158.5 19,181.8 1199,,228888..44 1199,,445566..33 19,444.3 24 Personal consumption expenditures 13,043.6 12,824.1 12,973.9 12,930.2 12,893.3 12,973.3 13,098.4 13,092.1 25 Disposable personal income 14,068.0 13,886.0 14,035.0 14,017.0 14,021.0 13,998.0 14,105.0 14,165.0 26 Saving rate (percent) 4.3 4.7 4.8 4.9 5.3 4.6 4.4 4.9 GROSS SAVING 27 Gross saving 718.0 708.2 686.3 677.5 682.9 696.9 687.9 738.2 28 Gross private saving 854.1 901.5 968.8 950.1 968.1 992.1 965.0 1,000.2 29 Personal saving 175.6 199.6 212.6 214.6 232.3 203.3 200.4 222.9 30 Undistributed corporate profits 75.7 75.8 104.3 104.0 97.7 91.2 124.1 122.1 31 Corporate inventory valuation adjustment -14.2 3.1 -7.4 -5.4 -15.5 -9.7 1.0 -9.4 Capital consumption allowances 368.3 338833..00 339944..88 338866..11 339911..22 440077..22 339944..77 440000..00 33 Noncorporate 234.6 243.1 258.6 245.3 247.0 290.4 251.8 261.2 34 Government surplus, or deficit (-), national income and -136.1 -193.3 -282.5 -272.6 -285.2 -295.2 --227777..22 -262.0 -166.2 -210.4 -298.0 -289.2 -302.9 -304.4 -295.5 -272.1 36 State and local 30.1 17.1 15.5 16.6 17.7 9.2 18.3 10.1 37 Gross investment 723.4 730.1 720.4 706.5 713.8 732.0 729.5 781.6 38 Gross private domestic 799.5 721.1 770.4 722.4 773.2 781.6 804.3 844.0 39 Net foreign -76.1 9.0 -49.9 -16.0 -59.4 -49.6 -74.7 -62.3 40 Statistical discrepancy 5.4 21.9 34.1 29.0 30.9 35.1 41.7 43.4 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 1992r 1993 1990r 1991r 1992r Q1 Q2 Q3 Q4 Qlp 1 Balance on current account.. -91,861 -8,324 -66,400 -6,685 -18,253 -17,775 -23,687 -22,249 2 Merchandise trade balance -109,033 -73,802 -96,138 -17,763 -24,801 -27,612 -25,962 -29,068 3 Merchandise exports 389,303 416,937 440,138 108,347 108,306 109,493 113,992 111,627 4 Merchandise imports -498,336 -490,739 -536,276 -126,110 -133,107 -137,105 -139,954 -140,695 5 Military transactions, net -7,834 -5,851 -2,751 -571 -727 -617 -836 -383 6 Other service transactions, net 38,485 51,733 59,163 14,619 14,378 15,898 14,265 15,006 7 Investment income, net 20,348 13,021 6,222 4,419 907 1,703 -806 273 8 9 U U . . S S . . g g o o v v e e r r n n m m e e n n t t p g e ra n n s t i s o ns and other transfers -1 -2 7 , , 9 43 3 4 4 - 2 3 4 , , 4 0 6 7 1 3 -1 -3 4 , , 7 6 3 8 5 8 -2 - , 8 7 3 8 0 8 - -1 3 , , 1 2 1 34 8 -2 - , 9 7 4 8 0 3 -5 - , 8 8 4 8 6 3 -3 - , 9 4 7 1 1 2 10 Private remittances and other transfers -13,459 -14,037 -14,473 -3,770 -3,659 -3,424 -3,619 -3,694 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,307 2,905 -1,609 -275 -293 -305 -737 309 12 Change in U.S. official reserve assets (increase, -) -2,158 0 5,76 0 3 3,90 0 1 -1,057 0 1,46 0 4 1,95 0 2 1,54 0 2 -983 0 13 Gold 1 1 4 5 R Sp e e s c e i r a v l e d p ra o w si i t n io g n ri in g h I t n s te (S rn D a R ti s o ) n al Monetary Fund -1 7 9 3 2 1 - - 1 3 7 6 7 7 -2 2 , , 6 3 9 1 2 6 -1 1 7 1 2 1 -1681 - -1 1 1 7 8 3 -2 2 , , 6 8 8 2 5 9 - -2 1 2 4 8 0 16 Foreign currencies -2,697 6,307 4,277 -9% 1,631 2,243 1,398 -615 17 Change in U.S. private assets abroad (increase, -) -44,280 -68,643 -53,253 303 -9,866 -12,445 -31,243 -2,639 18 Bank-reported claims3 16,027 3,278 24,948 17,795 4,050 6,584 -3,481 33,921 19 Nonbank-reported claims -4,433 1,932 4,551 5,339 1,294 -3,214 1,132 20 U.S. purchases of foreign securities, net -28,765 -44,740 —47,961 -8,493 -8,276 -13,787 -17,405 -26,578 21 U.S. direct investments abroad, net -27,109 -29,113 -34,791 -14,338 -6,934 -2,028 -11,489 -9,982 22 Change in foreign official assets in United States (increase, +) .. 34,198 17,564 40,684 21,124 21,008 -7,378 5,931 10,990 23 U.S. Treasury securities 29,576 14,846 18,454 14,916 11,240 -323 -7,379 1,039 24 Other U.S. government obligations 667 1,301 3,949 464 1,699 912 874 710 25 Other U.S. government liabilities 2,156 1,542 2,542 58 678 864 943 -210 26 Other U.S. liabilities reported by U.S. banks3 3,385 -1,484 16,427 5,573 7,466 -7,831 11,219 8,046 27 Other foreign official assets -1,586 1,359 -688 113 -75 -1,000 274 1,404 28 Change in foreign private assets in United States (increase, +).. 70,976 65,875 88,895 -1,290 23,442 33,828 32,914 8,600 29 U.S. bank-reported liabilities3 16,370 -11,371 18,609 -3,339 -528 23,647 -1,171 -22,048 30 U.S. nonbank-reported liabilities 7,533 -699 741 926 979 1,553 -2,717 31 Foreign private purchases of U.S. Treasury securities, net -2,534 18,826 36,893 623 10,168 4,870 21,232 14,179 32 Foreign purchases of other U.S. securities, net 1,592 35,144 30,274 4,613 10,453 2,730 12,478 10,635 33 Foreign direct investments in United States, net 48,015 23,975 2,378 -4,113 2,370 1,028 3,092 5,834 0 0 0 0 0 0 0 0 34 Allocation of special drawing rights 3 3 5 6 Di D sc u r e e p t a o n s c e y a sonal adjustment 30,820 -15,140 -12,218 -12 4 , , 1 8 2 7 0 8 -17,5 6 0 5 2 3 -6 2 , , 7 1 5 2 4 3 15 1 , ,2 2 2 8 2 0 5 5, , 7 9 2 7 6 3 37 Before seasonal adjustment 30,820 -15,140 -12,218 -16,998 -18,155 8,877 14,058 247 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -2,158 5,763 3,901 -1,057 1,464 1,952 1,542 -983 39 Foreign official assets in United States, excluding line 25 (increase, +) 32,042 16,022 38,142 21,066 20,330 -8,242 4,988 11,199 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 1,707 -4,882 5,857 2,583 -2,113 3,051 2,336 639 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 • August 1993 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1992 1993 IItteemm 11999900 11999911 11999922 Oct. Nov. Dec. Jan. Feb. Mar.r Apr." 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 393,592 421,730 448,164 38,885 37,7% 39,178 37,505 36,928 38,895 38,383 2 General imports including merchandise for immediate consumption plus entries into bonded warehouses 495,311 488,453 532,665 46,119 45,633 46,143 45,176 44,832 49,347 48,871 3 Trade balance -101,718 -66,723 -84,501 -7,233 -7,837 -6,965 -7,672 -7,904 -10,453 -10,487 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 military 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 Asset 1989 1990 Dec. Jan. Feb. Mar. Apr. 1 Total 74,609 83,316 77,719 72,231 71,323 71,962 72,847 74,378 75,644 2 Gold stock, including Exchange Stabilization Fund 11,059 11,058 11,057 11,059 11,056 11,055 11,055 11,054 11,054 3 Special drawing rights2,3 9,951 10,989 11,240 11,495 8,503 8,546 8,651 8,787 8,947 4 Reserve position in International Monetary Fund 9,048 9,076 9,488 8,781 11,759 12,079 12,021 12,184 12,317 5 Foreign currencies4 44,551 52,193 45,934 40,896 40,005 40,282 41,120 42,353 43,326 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 Nov. Dec. Jan. Feb. Mar. Apr. May" 1 Deposits 589 369 968 229 205 325 2% 317 221 193 Held in custody 2 U.S. Treasury securities2 224,911 278,499 281,107 308,959 314,481 324,356 329,183 326,486 339,3% 345,060 3 Earmarked gold 13,456 13,387 13,303 13,192 13,686 13,077 13,074 12,989 12,924 12,854 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. ASSETS All foreign countries 1 Total payable in any currency 545,366 556,925 548,901 553,977 566,721 542,545 543,624 554,280 546,941r 543,833 2 Claims on United States 198,835 188,496 176,301 174,986 177,443 166,798 169,278 172,304 171,648r 164,142 157,092 148,837 137,509 138,940 141,542 132,275 134,218 139,170 138,532r 128,611 4 Other banks in United States 17,042 13,2% 12,884 10,683 10,019 9,703 9,570 9,249 9,073r 10,830 24,701 26,363 25,908 25,363 25,882 24,820 25,490 23,885 24,043 24,701 300,575 312,449 303,934 319,139 328,592 318,071 314,736 317,868 314,912r 315,428 7 Other branches of parent bank 113,810 135,003 111,729 115,521 125,143 123,256 116,325 115,323 112,598r 110,189 8 Banks 90,703 72,602 81,970 86,560 86,086 82,190 81,812 84,439 84,909r 87,225 9 Public borrowers 16,456 17,555 18,652 20,809 20,378 20,756 19,984 19,822 18,915 18,694 10 Nonbank foreigners 79,606 87,289 91,583 %,249 %,985 91,869 %,615 98,284 98,490r 99,320 11 Other assets 45,956 55,980 68,666 59,852 60,686 57,676 59,610 64,108 60,381r 64,263 12 Total payable in U.S. dollars 382,498 379,479 363,941 364,000 374,420 365,824 353,643 361,251 353,315r 344,319 13 Claims on United States 191,184 180,174 169,662 169,290 171,938 162,125 164,681 167,773 167,051r 159,541 152,294 142,%2 133,476 136,156 138,424 129,329 131,554 136,650 135,939 126,181 15 Other banks in United States 16,386 12,513 12,025 9,360 9,291 9,266 9,213 8,704 8,336r 10,168 22,504 24,699 24,161 23,774 24,223 23,530 23,914 22,419 22,776 23,192 17 Claims on foreigners 169,690 174,451 167,010 173,427 182,360 183,527 171,120 174,726 170,338r 169,206 18 Other branches of parent bank 82,949 95,298 78,114 76,098 83,902 83,117 77,606 77,681 75,871r 73,049 19 Banks 48,396 36,440 41,635 45,436 45,931 47,250 41,616 43,067 41,266r 43,566 20 Public borrowers 10,961 12,298 13,685 13,966 13,995 14,313 13,883 13,710 13,068 12,537 21 Nonbank foreigners 27,384 30,415 33,576 37,927 38,532 38,847 38,015 40,268 40,133r 40,054 22 Other assets 21,624 24,854 27,269 21,283 20,122 20,172 17,842 18,752 15,926r 15,572 United Kingdom 23 Total payable in any currency 161,947 184,818 175,599 167,786 168,333 165,850 164,360 165,132 162,122 163,194 24 Claims on United States 39,212 45,560 35,257 39,558 38,358 36,403 37,609 34,919 34,989 33,353 25 Parent bank 35,847 42,413 31,931 36,413 35,027 33,460 34,290 32,779 31,719 29,605 26 Other banks in United States 1,058 792 1,267 1,400 925 1,298 886 783 892 757 27 Nonbanks 2,307 2,355 2,059 1,745 2,406 1,645 2,433 1,357 2,378 2,991 28 Claims on foreigners 107,657 115,536 109,692 109,919 113,193 111,623 108,362 110,420 106,944 109,428 29 Other branches of parent bank 37,728 46,367 35,735 40,594 45,092 46,165 42,894 41,317 39,466 39,673 30 Banks 36,159 31,604 36,394 36,701 34,559 33,399 33,513 36,601 34,914 38,138 31 Public borrowers 3,293 3,860 3,306 3,692 3,370 3,329 3,059 2,542 2,531 2,755 32 Nonbank foreigners 30,477 33,705 34,257 28,932 30,172 28,730 28,8% 29,960 30,033 28,862 33 Other assets 15,078 23,722 30,650 18,309 16,782 17,824 18,389 19,793 20,189 20,413 34 Total payable in U.S. dollars 103,208 116,762 105,974 107,290 109,479 109,493 101,375 99,755 94,870 95,612 35 Claims on United States 36,404 41,259 32,418 37,359 35,956 34,508 35,481 32,929 32,783 31,233 34,329 39,609 30,370 35,299 33,765 32,186 33,070 31,559 30,443 28,420 37 Other banks in United States 843 334 822 769 438 1,022 684 428 413 393 1,232 1,316 1,226 1,291 1,753 1,300 1,727 942 1,927 2,420 39 Claims on foreigners 59,062 63,701 58,791 61,658 65,164 66,335 59,505 60,695 57,530 60,180 40 Other branches of parent bank 29,872 37,142 28,667 30,217 34,434 34,124 30,823 28,856 30,017 29,388 41 Banks 16,579 13,135 15,219 17,269 16,848 17,089 14,316 16,800 13,422 16,903 42 Public borrowers 2,371 3,143 2,853 2,515 2,501 2,349 2,154 1,883 1,949 1,888 43 Nonbank foreigners 10,240 10,281 12,052 11,657 11,381 12,773 12,212 13,156 12,142 12,001 44 Other assets 7,742 11,802 14,765 8,273 8,359 8,650 6,389 6,131 4,557 4,637 Bahamas and Cayman Islands 45 Total payable in any currency 176,006 162,316 168,326 154,293 156,176 147,422 144,894 151,175 148,867 143,859 46 Claims on United States 124,205 112,989 115,244 102,726 104,245 %,280 %,976 102,836 100,687r %,829 47 Parent bank 87,882 77,873 81,520 72,207 73,856 66,608 67,219 73,825 72,841 67,190 48 Other banks in United States 15,071 11,869 10,907 8,199 8,282 7,828 7,%2 7,892 7,424r 9,279 21,252 23,247 22,817 22,320 22,107 21,844 21,795 21,119 20,422 20,360 50 Claims on foreigners 44,168 41,356 45,229 42,844 44,156 44,509 41,185 40,821 41,314r 40,442 51 Other branches of parent bank 11,309 13,416 11,098 7,287 8,238 7,293 7,041 7,311 6,650 6,873 52 Banks 22,611 16,310 20,174 19,840 20,122 21,212 18,464 17,440 18,797r 17,662 53 Public borrowers 5,217 5,807 7,161 7,146 7,209 7,786 7,564 7,422 7,188 6,690 54 Nonbank foreigners 5,031 5,823 6,7% 8,571 8,587 8,218 8,116 8,648 8,679 9,217 55 Other assets 7,633 7,971 7,853 8,723 7,775 6,633 6,733 7,518 6,866 6,588 56 Total payable in U.S. dollars 170,780 158,390 163,771 149,304 151,436 142,861 140,332 146,809 144,627 139,351 1. Since June 1984, reported claims held by foreign branches have been million to $150 million equivalent in total assets, the threshold now applicable to reduced by an increase in the reporting threshold for "shell" branches from $50 all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • August 1993 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1—Continued 1992 1993 AAccccoouunntt Oct. Nov. Dec. Jan. Feb. Mar. Apr. LIABILITIES All foreign countries 57 Total payable in any currency 545,366 556,925 548,901 553,977 566,721 542,545 543,624 554,280 546,941R 543,833 58 Negotiable certificates of deposit (CDs) .. 23,500 18,060 16,284 12,056 12,342 10,032 12,320 11,872 11,5%r 13,748 59 To United States 197,239 189,412 198,121 189,090 188,116 189,444 175,978 184,155 187,088" 176,082 60 Parent bank 138,412 138,748 136,431 133,110 131,918 134,339 122,627 124,123 125,650" 114,964 61 Other banks in United States 11,704 7,463 13,260 12,281 13,392 12,182 12,829 12,373 13,306 11,952 62 Nonbanks 47,123 43,201 48,430 43,699 42,806 42,923 40,522 47,659 48,132" 49,166 63 To foreigners 296,850 311,668 288,254 315,401 330,315 309,704 321,297 319,638 312,417r 316,661 64 Other branches of parent bank 119,591 139,113 112,033 118,001 126,018 125,160 120,179 119,601 115,535r 113,845 65 Banks 76,452 58,986 63,097 70,439 74,536 62,189 67,843 70,056 68,41lr 67,382 66 Official institutions 16,750 14,791 15,5% 20,572 20,645 19,731 23,654 21,469 18,312r 21,326 67 Nonbank foreigners 84,057 98,778 97,528 106,389 109,116 102,624 109,621 108,512 110,159" 114,108 68 Other liabilities 27,777 37,785 46,242 37,430 35,948 33,365 34,029 38,615 35,840" 37,342 69 Total payable in U.S. dollars 396,613 383,522 370,561 365,399 372,819 368,773 353,725 363,285 353,431" 343,867 70 Negotiable CDs 19,619 14,094 11,909 6,710 7,503 6,238 7,102 6,640 6,519 7,062 71 To United States 187,286 175,654 185,286 176,124 175,969 178,674 164,634 172,223 175,354" 163,715 72 Parent bank 132,563 130,510 129,669 125,602 124,770 127,948 116,008 117,228 119,040" 107,948 73 Other banks in United States 10,519 6,052 11,707 11,409 12,246 11,512 11,710 11,418 12,467 11,282 74 Nonbanks 44,204 39,092 43,910 39,113 38,953 39,214 36,916 43,577 43,847" 44,485 75 To foreigners 176,460 179,002 158,993 166,443 175,791 172,189 169,595 170,756 160,774" 163,149 76 Other branches of parent bank 87,636 98,128 76,601 77,197 82,957 83,700 79,144 79,594 77,685" 75,682 77 Banks 30,537 20,251 24,156 25,210 28,404 26,118 23,281 25,571 21,227" 22,150 78 Official institutions 9,873 7,921 10,304 12,097 12,342 12,430 14,067 14,034 10,762 12,627 79 Nonbank foreigners 48,414 52,702 47,932 51,939 52,088 49,941 53,103 51,557 51,100" 52,690 80 Other liabilities 13,248 14,772 14,373 16,122 13,556 11,672 12,394 13,666 10,784" 9,941 United Kingdom 81 Total payable in any currency 161,947 184,818 175,599 167,786 168,333 165,850 164,360 165,132 162,122 163,194 82 Negotiable CDs 20,056 14,256 11,333 6,064 5,636 4,517 5,774 5,597 4,753 5,414 83 To United States 36,036 39,928 37,720 35,399 34,532 39,174 32,780 33,092 38,011 34,661 84 Parent bank 29,726 31,806 29,834 27,427 26,471 31,100 25,099 24,250 29,759" 22,611 85 Other banks in United States 1,256 1,505 1,438 1,341 1,689 1,065 1,742 1,633 1,192 1,110 86 Nonbanks 5,054 6,617 6,448 6,631 6,372 7,009 5,939 7,209 7,060" 10,940 87 To foreigners 92,307 108,531 98,167 109,358 113,395 107,176 111,351 110,514 104,356 108,670 88 Other branches of parent bank 27,397 36,709 30,054 33,6% 35,560 35,983 35,376 35,143 33,424 33,545 89 Banks 29,780 25,126 25,541 28,792 30,609 25,231 25,%5 27,227 23,985 26,082 90 Official institutions 8,551 8,361 9,670 11,687 11,438 12,090 14,188 12,938 10,531 12,342 91 Nonbank foreigners 26,579 38,335 32,902 35,183 35,788 33,872 35,822 35,206 36,416 36,701 92 Other liabilities 13,548 22,103 28,379 16,965 14,770 14,983 14,455 15,929 15,002 14,449 93 Total payable in U.S. dollars 108,178 116,094 108,755 104,469 105,699 108,214 100,731 101,342 95,892 94,159 94 Negotiable CDs 18,143 12,710 10,076 4,213 4,494 3,894 4,770 4,444 3,765 4,214 95 To United States 33,056 34,697 33,003 31,266 30,204 35,417 28,545 28,874 33,552 30,170 96 Parent bank 28,812 29,955 28,260 26,021 25,160 29,957 23,767 23,097 28,405" 21,145 97 Other banks in United States 1,065 1,156 1,177 866 906 709 1,063 1,097 707 676 98 Nonbanks 3,179 3,586 3,566 4,379 4,138 4,751 3,715 4,680 4,440" 8,349 99 To foreigners 50,517 60,014 56,626 59,938 62,899 62,048 60,107 59,643 51,850 54,407 100 Other branches of parent bank 18,384 25,957 20,800 22,080 22,8% 22,026 20,807 20,516 19,516 18,958 101 Banks 12,244 9,488 11,069 10,956 13,050 12,540 9,740 10,359 6,702 8,327 102 Official institutions 5,454 4,692 7,156 8,142 8,459 8,847 10,114 9,%7 7,008 8,803 103 Nonbank foreigners 14,435 19,877 17,601 18,760 18,494 18,635 19,446 18,801 18,624 18,319 104 Other liabilities 6,462 8,673 9,050 9,052 8,102 6,855 7,309 8,381 6,725 5,368 Bahamas and Cayman Islands 105 Total payable in any currency 176,006 162,316 168,326 154,293 156,176 147,422 144,894 151,175 148,867 143,859 106 Negotiable CDs 678 646 1,173 1,394 1,939 1,350 1,355 1,142 1,713 1,692 107 To United States 124,859 114,738 129,872 114,439 116,699 111,861 108,150 110,729 110,391 105,895 108 Parent bank 75,188 74,941 79,394 69,649 71,381 67,347 65,122 62,336 59,668" 59,415 109 Other banks in United States 8,883 4,526 10,231 10,303 10,944 10,445 10,265 10,059 11,492 10,291 110 Nonbanks 40,788 35,271 40,247 34,487 34,374 34,069 32,763 38,334 39,231" 36,189 111 To foreigners 47,382 44,444 35,200 34,8% 35,411 32,556 33,766 37,690 35,369 34,773 112 Other branches of parent bank 23,414 24,715 17,388 15,441 16,287 15,169 15,411 18,056 18,015 17,462 113 Banks 8,823 5,588 5,662 6,988 7,574 6,422 6,350 7,%7 6,476 6,219 114 Official institutions 1,097 622 572 1,058 932 805 932 1,036 858 905 115 Nonbank foreigners 14,048 13,519 11,578 11,409 10,618 10,160 11,073 10,631 10,020 10,187 116 Other liabilities 3,087 2,488 2,081 3,564 2,127 1,655 1,623 1,614 1,394 1,499 117 Total payable in U.S. dollars 171,250 157,132 163,603 149,320 151,527 143,150 140,734 146,875 144,291 138,741 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A57 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1992 1993 IItteemm 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar. Apr." 1 Total1 344,529 360,530 405,465 394,845 398,672 411,817 413,235 409,992r 402,908 By type 2 Liabilities reported by banks in the.United States'' 39,880 38,396 60,933 54,007 54,823 63,792 66,454 62,974r 62,116 3 U.S. Treasury bills and certificates 79,424 92,692 104,286 100,702 104,596 111,540 113,594 113,547 103,293 U.S. Treasury bonds and notes 4 Marketable 202,487 203,677 211,875 211,272 210,553 207,588 203,224 202,567r 205,155 5 Nonmarketable 4,491 4,858 4,473 4,503 4,532 4,563 4,592 4,622 5,431 6 U.S. securities other than U.S. Treasury securities 18,247 20,907 23,898 24,361 24,168 24,334 25,371 26,282 26,913 By area 7 Western Europe1 167,191 168,365 194,551 184,207 188,693 196,240 199,659 187,402r 184,644 8 Canada 8,671 7,460 8,111 6,381 7,920 8,411 7,886 9,326 8,302 9 Latin America and Caribbean 21,184 33,554 38,678 38,945 40,015 41,388 42,502 44,509 38,970 10 Asia 138,096 139,465 153,555 154,493 152,148 156,211 154,015 157,918r 159,629 11 Africa 1,434 2,092 3,481 3,779 3,565 3,705 3,866 3,919 3,770 12 Other countries 7,955 9,592 7,087 7,038 6,329 5,860 5,305 6,916 7,591 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 1992 1993 IItteemm 11998899 11999900 11999911 June Sept. Dec. Mar. 1 Banks' liabilities 67,835 70,477 75,129 71,240 84,487 73,227 80,641 2 Banks' claims 65,127 66,796 73,195 58,262 72,003 62,772 64,037 3 Deposits 20,491 29,672 26,192 23,466 28,074 24,186 23,660 4 Other claims 44,636 37,124 47,003 34,796 43,929 38,586 40,377 5 Claims of banks' domestic customers 3,507 6,309 3,398 4,375 3,987 4,432 2,625 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 • August 1993 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1992 1993 Item 1990 1991 Oct. Nov Dec. Jan. Feb. Mar.' HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 759,634 756,066 809,919 793,298 799,590 809,919 801,571 814,054R 797,598 2 Banks' own liabilities 577,229 575,374 606,168 590,791 601,073 606,168 592,187 605,432r 585,748 3 Demand deposits 21,723 20,321 21,822 21,302 21,935 21,822 21,106 22,310 21,580 4 Time deposits2 168,017 159,649 160,327 157,488 156,814 160,327 150,095 147,195r 141,781 5 Other. 65,822 66,305 93,854 92,315 %,294 93,854 103,828 106,352r 99,241 6 Own foreign offices 321,667 329,099 330,165 319,686 326,030 330,165 317,158 329,575r 323,146 7 Banks' custodial liabilities5 182,405 180,692 203,751 202,507 198,517 203,751 209,384 208,622r 211,850 8 U.S. Treasury bills and certificates 96,796 110,734 127,649 127,993 122,480 127,649 133,799 135,300" 137,062 9 Other negotiable and readily transferable instruments 17,578 18,664 21,982 20,043 21,755 21,982 22,%9 20,735 22,309 10 Other 68,031 51,294 54,120 54,471 54,282 54,120 52,616 52,587 52,479 11 Nonmonetary international and regional organizations 5,918 8,981 9,350 10,727 9,915 9,350 11,099 ll,538r 9,160 12 Banks' own liabilities 4,540 6,827 6,951 7,001 6,982 6,951 7,837 8,884r 5,902 13 Demand deposits 36 43 46 73 58 46 39 47 1% 14 Time deposits2 1,050 2,714 3,214 1,899 2,561 3,214 2,809 2,376 2,730 15 Other. 3,455 4,070 3,691 5,029 4,363 3,691 4,989 6,461r 2,976 16 Banks' custodial liabilities5 1,378 2,154 2,399 3,726 2,933 2,399 3,262 2,654 3,258 17 U.S. Treasury bills and certificates 364 1,730 1,908 3,085 2,371 1,908 2,774 2,348 2,876 18 Other negotiable and readily transferable 19 Other instruments 1,014 0 424 0 486 5 64 0 1 561 1 486 5 48 0 8 306 0 382 0 20 Official institutions9 119,303 131,088 159,419 165,219 154,709 159,419 175,332 180,048 176,521 21 Banks' own liabilities 34,910 34,411 51,058 57,225 50,027 51,058 59,577 62,687 59,471 22 Demand deposits 1,924 2,626 1,274 1,723 1,492 1,274 1,397 1,764 1,457 23 Time deposits2 14,359 16,504 17,828 19,741 17,834 17,828 18,685 18,9% 18,707 24 Other 18,628 15,281 31,956 35,761 30,701 31,956 39,495 41,927 39,307 25 Banks' custodial liabilities5 84,393 96,677 108,361 107,994 104,682 108,361 115,755 117,361 117,050 26 U.S. Treasury bills and certificates 79,424 92,692 104,5% 104,286 100,702 104,5% 111,540 113,594 113,547 27 Other negotiable and readily transferable instruments 4,766 3,879 3,726 3,595 3,784 3,726 4,054 3,648 3,411 28 Other 203 106 39 113 196 39 161 119 92 29 Banks10 540,805 522,265 546,412 525,221 543,980 546,412 522,015 529,683r 520,063 30 Banks' own liabilities 458,470 459,335 475,260 454,183 472,949 475,260 453,242 462,185r 451,077 31 Unaffiliated foreign banks 136,802 130,236 145,095 134,497 146,919 145,095 136,084 132,610"^ 127,931 32 Demand deposits 10,053 8,648 10,168 9,741 10,088 10,168 9,903 10,974 10,493 33 Time deposits 88,541 82,857 90,193 85,729 87,690 90,193 80,351 77,823r 72,394 34 Other. 38,208 38.731 44,734 39,027 49,141 44,734 45,830 43,813r 45,044 35 Own foreign offices4 321,667 329,099 330,165 319,686 326,030 330,165 317,158 329,575r 323,146 36 Banks' custodial liabilities5 82,335 62.930 71,152 71,038 71,031 71,152 68,773 67,498 68,986 37 U.S. Treasury bills and certificates 10,669 7,471 11,087 10,481 10,444 11,087 9,685 9,2% 9,976 38 Other negotiable and readily transferable instruments 5,341 5,694 7,568 7,325 7,572 7,568 7,708 6,692 7,957 39 Other 66,325 49,765 52,497 53,232 53,015 52,497 51,380 51,510 51,053 40 Other foreigners 93,608 93.732 94,738 92,131 90,986 94,738 93,125 92,785r 91,854 41 Banks' own liabilities 79,309 74,801 72,899 72,382 71,115 72,899 71,531 71,676r 69,298 42 Demand deposits 9,711 9,004 10,334 9,765 10,297 10,334 9,767 9,525 9,434 43 Time deposits 64,067 57,574 49,092 50,119 48,729 49,092 48,250 48,00c 47,950 44 Other3 5,530 8,223 13,473 12,498 12,089 13,473 13,514 14,151r 11,914 4 4 6 5 Ba U n . k S s . ' T cu r s e t a o s d u i r a y l b li i a ll b s i l a it n i d e s5 c ertificates 1 6 4 , , 3 2 3 9 9 9 1 8 8 , . 8 9 4 3 1 1 2 1 1 0 , , 8 0 3 5 9 8 1 10 9 , , 1 7 4 4 1 9 1 8 9, , 8 % 7 3 1 2 1 1 0 , , 8 0 3 5 9 8 21 9 , , 5 8 9 0 4 0 2 1 1 0 , , 1 0 0 6 9 2 r r 2 1 2 0 , , 5 6 5 6 6 3 47 Other negotiable and readily transferable instruments 6,457 8,667 10,202 8,482 9,838 10,202 10,719 10,089 10,559 48 Other 1,503 1,423 1,579 1,126 1,070 1,579 1,075 958 1,334 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 7,073 7,456 9,114 7,672 7,716 9,114 9,724 9,499 9,548 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 1990 1992 Oct. Dec. Jan. Feb. AREA 1 Total, all foreigners . 759,634 756,066 809,919 793,298 799,590 809,919 801,571 814,0541 797,598' 2 Foreign countries ... 753,716 747,085 800,569 782,571 789,675 800,569 790,472 802,516r 788,438' 3 Europe 254,452 249,097 308,398 306,547 311,875 308,398 303,721 304,755r 293,384r 4 Austria 1,229 1,193 1,611 1,584 1,358 1,611 1,158 1,942 1,256 Belgium and Luxembourg . 12,382 13,337 20,572 21,183 19,662 20,572 21,255 19,729 19,475 Denmark 1,399 937 3,060 1,788 1,481 3,060 1,885 2,835 1,536 Finland 602 1,341 1,299 949 1,144 1,299 1,862 2,049 2,297 G Fr e a r n m c a e ny 30 7, , 4 9 8 4 5 6 3 8 1 , , 6 8 1 0 9 8 4 1 1 8 , , 4 6 5 3 9 1 3 1 4 3 , , 8 8 8 1 1 0 3 1 9 5 , , 9 4 6 0 8 1 4 1 1 8 , , 4 6 5 3 9 1 3 20 4 , , 6 2 8 8 5 5 3 1 2 8 , , 4 9 5 3 7 4 3 1 1 6 , , 7 1 1 0 2 7 r Greece 934 765 910 872 749 910 815 758 761 11 Italy 17,735 13,541 10,041 11,104 12,494 10,041 8,759 10,701 8,907 2 2 2 2 1 1 1 1 1 1 1 1 0 1 2 3 6 8 9 4 5 7 2 3 Y O R O T S U P S N S N w p o w u u u t t n e o h h a r g r s t i e r i t k e i e h s t o t w u d n e z r i r e s e a g e d s e a y l r E n a a y r l i l v l a a n K a i n s n a i W t d 1 d n e 1 s g r e n d s t o e E m r u n r o E p u e ' r ' o 13 p " e 1 1 3 0 1 2 7 6 5 2 1 9 1 1 1 , . , , , , , . , , 9 5 3 6 3 9 8 5 5 1 6 1 5 4 5 3 9 5 2 5 4 6 8 1 8 4 7 7 0 0 8 5 5 9 9 9 1 3 1 0 7 9 2 2 7 3 1 0 1 1 , , , , , , , , , , 1 1 2 2 2 4 3 2 6 2 5 8 8 6 2 3 6 7 9 9 2 9 4 6 4 1 2 8 7 4 1 2 2 8 1 6 1 3 2 1 7 9 2 3 2 2 3 5 9 2 , , , , , , , , , , 7 9 3 6 4 4 3 8 4 4 5 5 9 8 7 6 6 3 2 1 3 4 0 7 6 6 2 6 5 4 2 9 4 0 4 7 1 3 2 1 1 8 2 5 2 8 7 3 4 4 1 , , , , , , , , , , 9 3 2 5 2 9 2 6 5 4 7 5 6 1 5 2 4 4 0 2 7 7 0 5 2 2 8 4 0 1 2 8 7 7 5 0 1 4 2 1 1 4 0 8 2 2 2 6 3 0 7 , , , , , , , , , , 4 2 0 7 4 3 6 6 3 3 5 6 8 5 1 9 1 9 6 5 8 7 9 0 5 5 4 1 1 1 0 3 3 5 9 1 1 2 3 1 7 9 5 3 2 2 2 9 3 2 , , , , , , , , , , 7 3 8 6 4 9 3 4 4 4 5 5 9 7 3 6 6 8 3 1 0 2 4 7 6 2 4 6 5 6 4 9 4 2 0 7 1 4 2 1 0 1 8 2 2 5 3 2 2 4 6 , , , , , , , , , , 5 5 7 5 5 7 9 9 5 4 7 % 1 3 5 3 3 1 2 0 0 0 3 2 8 3 0 1 3 8 6 4 6 0 6 1 4 2 1 1 0 0 7 2 2 2 2 1 7 l 5 , , , , , , , , , , 9 5 2 4 8 5 3 7 2 5 4 5 0 2 2 9 6 0 8 1 3 1 9 0 1 7 2 8 2 1 2 3 1 2 7 4 r r r 1 2 3 1 1 0 5 2 2 2 2 9 1 5 1 6 , , , , , , , , , , 3 5 4 4 7 5 6 4 5 7 3 5 5 2 8 5 4 1 1 3 2 3 4 % 0 0 9 9 8 9 8 5 3 5 1 ' ' ' 24 Canada 20,349 21,605 22,746 21,378 22,052 22,746 21,467 22,898 25,040' 25 Latin America and Caribbean. 332,997 345,529 316,008 310,015 309,750 316,008 313,248 320,506r 318,278' 2 2 6 7 B A a rg h e a n m ti a n s a 10 7 7 , , 3 3 6 8 5 6 10 7 0 , , 7 6 5 2 3 2 8 9 2, ,4 21 7 2 7 85 9 , , 8 38 7 7 8 86 8 , , 3 7 1 1 0 5 82 9 , ,4 21 77 2 8 1 4 0 , , 7 7 6 9 7 2 8 1 7 0 , , 8 6 0 0 2 8 r 8 1 3 1 , , 5 56 5 8 2 ' 28 Bermuda 2,822 3,178 7.079 5,889 6,355 7.079 6,319 6,508 6,304 29 Brazil 5,834 5,704 5,584 5,828 5,235 5,584 5,321 5,304 5,462 30 British West Indies 147,321 163,620 151,886 143,311 143,084 151,886 146,879 149,506 150,803 31 Chile 3,145 3,283 3,035 3,253 2,925 3,035 3,638 3,420 3,325 32 Colombia 4,492 4,661 4,580 4,767 4,677 4,580 4,438 4,417 4,183 33 Cuba 11 2 3 10 11 3 2 3 3 34 Ecuador 1,379 1,232 993 1,026 1,016 993 945 886 928 35 Guatemala 1,541 1,594 1,377 1,376 1,323 1,377 1,311 1,311 1,382 36 Jamaica 257 231 371 274 271 371 294 279 309 37 Mexico 16,650 19,957 19,456 19,216 19,543 19,456 20,023 21,207 21,772 38 Netherlands Antilles 7,357 5,592 5,205 4,708 6,101 5,205 4,352 4,869 4,221 39 Panama 4,574 4,695 4,177 4,116 3,976 4,177 4,013 4,214 3,927 40 Peru 1,294 1,249 1.080 1,141 1,047 1.080 1,052 1,045 995 41 Uruguay 2,520 2,096 1,955 2,087 2,092 1,955 1,898 2,061 1,815 42 Venezuela 12,271 13,181 11,387 11,504 11,003 11,387 11,106 10,984 11,446 43 Other 6,779 6,879 6,151 6,244 6,066 6,151 6,098 6,082 6,283 44 Asia 136,844 120,462 143,362 134,385 136,111 143,362 141,524 143,518r 140,187' China 45 People's Republic of China 2,421 2,626 3,202 2,582 2,559 3,202 3,114 3,007 2,957 46 Republic of China (Taiwan) 11,246 11,491 8,379 8,616 8,750 8,379 8,929 9,102 9,022' 47 Hong Kong 12,754 14,269 18.445 17,542 16,322 18.445 17,510 19,445 16,949' 48 India 1,233 2,418 1,396 1,234 1,210 1,3% 1,323 1,377 1,399 4 5 5 5 5 5 5 5 9 1 5 0 2 3 4 6 J I P O T I M K s n a h h t r o p i d h i a a d r l a o e e i i d e n l n p r l a l a e e p n s ( i d S E n i a e o a s u s t t e h r ) n oil-exporting countries 6 1 1 7 2 2 6 5 1 1 1 , , , , , . , , 7 2 0 9 8 4 2 5 6 8 7 6 2 4 3 8 7 7 6 5 9 3 8 5 4 1 1 7 2 2 2 2 5 6 1 , , , , , , , . 5 0 2 0 4 7 0 4 8 5 6 1 4 5 7 6 7 2 9 5 9 2 1 3 5 2 1 8 3 3 2 5 1 5 1 , , , , , . , , 3 7 2 3 5 4 7 4 3 7 7 3 8 1 4 8 2 5 5 6 2 4 6 0 5 1 1 6 2 3 2 5 9 4 1 , , , , , , , , 1 2 0 2 5 0 9 2 0 0 8 7 2 4 1 6 1 8 2 5 9 0 6 0 5 2 1 5 0 5 3 3 2 5 1 , , , , , , , , 7 2 3 6 6 2 0 2 6 9 9 9 5 2 2 1 6 7 8 1 6 2 3 7 5 2 1 8 3 5 1 3 2 1 5 , , , . , , , , 3 7 5 4 3 2 4 7 3 7 8 4 3 7 1 8 2 5 2 6 6 5 4 0 5 1 1 6 3 3 2 5 9 1 8 , , , , , , , , 0 4 7 3 3 8 3 4 0 1 2 5 8 7 9 % 7 5 2 0 9 7 2 5 1 1 7 3 3 2 5 9 6 1 , , , , , , , , 4 3 3 7 9 8 2 4 6 7 7 4 9 9 7 6 8 1 5 6 7 7 3 0 r 5 1 1 3 3 6 2 5 1 9 6 , , , , , , , , 3 9 7 3 8 6 8 0 0 7 4 3 9 7 4 9 7 4 2 0 2 1 9 5 ' 57 Africa 4,630 4,825 5,884 5,843 6,062 5,884 5,913 6,364 6,502 58 Egypt 1,425 1,621 2,472 2,598 2,601 2,472 2,756 3,077 3,084 59 Morocco 104 79 76 98 93 76 88 92 87 60 South Africa 228 228 190 240 214 190 158 319 243 61 Zaire 53 31 19 24 23 19 25 17 13 62 Oil-exporting countries 1,110 1,082 1,346 1,201 1,402 1,346 1,125 1,135 1,239 63 Other 1,710 1,784 1,781 1,682 1,729 1,781 1,761 1,724 1,836 64 Other 4.444 5,567 4,171 4,403 3,825 4,171 4,599 4,475 5,047 65 Australia 3,807 4.464 3,047 2,987 2,654 3,047 3,502 3,388 4,013 66 Other ... 637 1,103 1,124 1,416 1,171 1,124 1,097 1,087 1,034 67 Nonmonetary international and regional 68 In o te r r g n a a n t i i z o a n t a io l1 n s 4 5 , , 3 9 9 1 0 8 6 8 , , 4 9 8 8 5 1 9 7, , 4 3 3 5 4 0 1 7 0 , , 6 7 8 2 9 7 6 9 , , 7 9 6 1 4 5 9 7, , 4 3 3 5 4 0 1 7 1 , , 8 0 6 9 4 9 ll 8 , , 5 8 3 5 8 7 r r 9 6 , ,1 1 1 60 6 ' ' 69 Latin American regional 1,048 1,181 1,415 2,130 2,248 1,415 2,327 1,738 2,021 70 Other regional18 479 1,315 501 908 903 501 908 943 1,023 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 • August 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 11999922 Oct. Nov. Dec. Jan. Feb. Mar. Apr." 1 Total, all foreigners 511,543 514,339 495,713 493,689 490,721 495,713 483,903 493,560r 473,440' 468,808 2 Foreign countries 506,750 508,056 490,631 491,217 487,840 490,631 480,803 489,452r 470,118r 466,391 3 113,093 114,310 124,130 126,170 122,143 124,130 117,308 124,724 122,668r 120,253 4 Austria 362 327 341 414 463 341 366 530 1,101 1,013 Belgium and Luxembourg 5,473 6,158 6,404 6,980 6,423 6,404 6,473 5,886 6,066 6,177 6 Denmark 497 686 707 830 1,056 707 705 785 682 645 7 Finland 1,047 1,907 1,419 817 1,230 1,419 1,275 1,226 1,010 998 8 14,468 15,112 14,847 16,111 15,718 14,847 14,012 14,670 13,340* 13,141 9 Germany 3,343 3,371 4,229 5,629 5,328 4,229 5,544 5,370 s.soo1' 5,322 10 Greece 727 553 718 583 598 718 669 668 583 610 11 Italy 6,052 8,242 9,048 9,752 9,443 9,048 8,716 8,466 8,493 8,729 1? Netherlands 1,761 2,546 2,497 2,334 3,006 2,497 2,927 3,279 2,676 2,607 13 Norway 782 669 356 666 435 356 649 750 645 714 14 292 344 325 327 330 325 390 494 454 513 15 2,668 1,881 2,772 4,642 3,481 2,772 2,593 4,158 3,889 3,642 16 Sweden 2,094 2,335 4,929 6,678 5,786 4,929 5,340 5,155 4,809 4,509 17 Switzerland 4,202 4,540 4,722 3,688 3,591 4,722 4,493 4,971 4,423r 4,352 18 Turkey 1,405 1,063 962 1,177 950 962 1,071 1,041 943 1,639 19 United Kingdom 65,151 60,395 63,980 60,209 58,991 63,980 56,262 61,394 62,045r 60,317 70 Yugoslavia2 1,142 825 569 668 661 569 571 567 553 551 71 Others in Western Europe 597 789 1,706 959 1,019 1,706 1,607 1,607 1,780 1,316 7? Russia 530 1,970 3,147 3,190 3,174 3,147 3,154 3,154 2,906 2,889 23 Other Eastern Europe 499 597 452 516 460 452 491 553 470 569 24 Canada 16,091 15,113 14,185 16,830 15,834 14,185 16,481 14,972 18,356r 17,067 75 Latin America and Caribbean 231,506 246,137 213,772 213,423 217,040 213,772 218,391 210,770 201,911r 200,118 76 Argentina 6,967 5,869 4,882 4,564 4,605 4,882 4,804 4,859 4,835 3,922 77 76,525 87,138 59,532 64,853 65,139 59,532 62,831 63,898 57,030* 57,531 78 4,056 2,270 5,934 2,798 6,035 5,934 6,797 2,851 3,910 5,609 79 Brazil 17,995 11,894 10,733 11,558 11,583 10,733 10,924 10,507 10,863 10,780 30 British West Indies 88,565 107,846 98,738 96,906 96,325 98,738 100,926 94,885 92,134r 88,670 31 Chile 3,271 2,805 3,397 3,323 3,309 3,397 3,690 3,795 3,638r 3,548 3? Colombia 2,587 2,425 2,750 2,595 2,698 2,750 2,752 2,819 2,807 2,786 33 Cuba 0 0 0 5 0 0 0 0 0 0 34 1,387 1,053 884 936 926 884 853 835 809* 798 35 Guatemala 191 228 262 275 255 262 240 257 274 269 36 Jamaica 238 158 167 147 162 167 170 164 168* 178 37 Mexico 14,851 16,567 15,049 16,621 16,495 15,049 15,216 15,988 15,103* 15,507 38 Netherlands Antilles 7,998 1,207 1,379 1,080 1,529 1,379 1,735 1,938 2,107 1,987 39 Panama 1,471 1,560 4,474 1,979 2,080 4,474 2,024 2,307 2,539* 2,309 40 Peru 663 739 730 713 723 730 735 708 650 691 41 Uruguay 786 599 936 882 877 936 895 844 846 795 4? Venezuela 2,571 2,516 2,525 2,700 2,880 2,525 2,409 2,485 2,558* 2,858 43 Other 1,384 1,263 1,400 1,488 1,419 1,400 1,390 1,630 1,640* 1,880 44 138,722 125,262 131,248 127,358 126,143 131,248 121,729 131,494r 119,559* 121,960 China 45 People's Republic of China 620 747 906 978 624 906 774 892 939 1,388 46 Republic of China (Taiwan) 1,952 2,087 2,046 1,848 1,653 2,046 1,683 1,585 1,630* 1,670 47 Hong Kong 10,648 9,617 9,673 9,095 9,287 9,673 9,145 10,298 10,542* 9,215 48 India 655 441 529 500 539 529 532 549 443 549 49 Indonesia 933 952 1,189 1,112 1,135 1,189 1,323 1,292 1,469 1,432 50 774 860 820 826 937 820 877 809 896* 1,057 51 90,699 84,807 78,609 80,253 77,676 78,609 74,593 79,791r 67,294* 71,267 5? Korea (South) 5,766 6,048 6,170 6,113 6,288 6,170 6,063 6,753 6,938* 7,048 53 1,247 1,910 2,145 2,181 2,034 2,145 1,871 1,842 1,713 1,645 54 Thailand 1,573 1,713 1,867 1,764 1,873 1,867 1,796 1,737 1,659 1,775 55 Middle Eastern oil-exporting countries 10,749 8,284 18,559 15,488 16,858 18,559 17,083 17,775 19,048 17,909 56 Other 13,106 7,796 8,735 7,200 7,239 8,735 5,989 8,171 6,988* 7,005 57 5,445 4,928 4,289 4,303 4,233 4,289 4,262 4,147 3,871 3,745 58 Egypt 380 294 194 229 214 194 171 291 192 151 59 Morocco 513 575 441 452 443 441 421 403 396 396 60 South Africa 1,525 1,235 1,041 1,036 1,063 1,041 1,069 1,030 1,011* 924 61 Zaire 16 4 4 4 4 4 3 3 3 3 6? Oil-exporting countries 1,486 1,298 1,004 1,056 1,029 1,004 1,067 1,108 1,140* 1,142 63 Other 1,525 1,522 1,605 1,526 1,480 1,605 1,531 1,312 1,129 1,129 64 Other 1,892 2,306 3,007 3,133 2,447 3,007 2,632 3,345 3,753 3,248 65 Australia 1,413 1,665 2,263 1,951 1,601 2,263 1,896 2,552 3,117 2,632 66 Other 479 641 744 1,182 846 744 736 793 636 616 67 Nonmonetary international and regional organizations 44,,779933 6,283 55,,008822 2,472 2,881 5,082 3,100 4,108 3,322* 22,,441177 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 1992 1993 Claim 11999900 11999911 11999922 Oct. Nov. Dec. Jan. Feb/ Mar/ Apr." 1 Total 579,044 579,683 555,697 555,697 525,329 2 Banks' claims 511,543 514,339 495,713 493,689 490,721 495,713 483,903 493,560 473,440 468,808 3 Foreign public borrowers 41,900 37,126 31,370 32,056 30,955 31,370 33,163 30,372 33,654 30,645 4 Own foreign offices 304,315 318,800 299,770 298,056 290,974 299,770 290,938 303,819 289,928 283,167 5 Unaffiliated foreign banks 117,272 116,602 109,909 112,224 112,512 109,909 101,949 102,870 97,568 98,832 6 Deposits 65,253 69,018 61,125 60,856 61,999 61,125 53,612 51,690 49,045 50,245 7 Other 52,019 47,584 48,784 51,368 50,513 48,784 48,337 51,180 48,523 48,587 8 All other foreigners 48,056 41,811 54,664 51,353 56,280 54,664 57,853 56,499 52,290 56,164 9 Claims of banks' domestic customers3 67,501 65,344 59,984 59,984 51,889 10 Deposits 14,375 15,280 15,452 15,452 12,000 11 Negotiable and readily transferable instruments 41,333 37,125 31,400 31,400 27,283 12 Outstanding collections and other claims 11,792 12,939 13,132 13,132 12,606 MEMO 13 Customer liability on acceptances 13,628 8,974 8,701 8,701 7,876 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States .. 44,638 40,146 33,605 34,522 33,708 33,605 36,159 36,826 36,434 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 Maturity, by borrower and area 1989 1991 June Sept. Dec. 1 Total 238,123 206,903 195,302 196,768 187,398 195,626 By borrower 2 Maturity of one year or less ... 178,346 165,985 162,573 162,433 155,254 164,059 3 Foreign public borrowers 23,916 19,305 21,050 20,528 17,863 17,867 4 All other foreigners 154,430 146,680 141,523 141,905 137,391 146,192 5 Maturity of more than one year2 59,776 40,918 32,729 34,335 32,144 31,567 6 Foreign public borrowers 36,014 22,269 15,859 15,145 13,295 13,223 7 All other foreigners 23,762 18,649 16,870 19,190 18,849 18,344 By area Maturity of one year or less2 8 Europe 53,913 49,184 51,835 54,997 55,986 53,885 9 Canada 5,910 5,450 6,444 7,986 5,949 6,118 10 Latin America and Caribbean 53,003 49,782 43,597 49,094 45,241 50,320 11 Asia 57,755 53,258 51,059 41,409 40,824 45,862 12 Africa 3,225 3,040 2,549 2,127 2,183 1,810 13 All other3 4,541 5,272 7,089 6,820 5,071 6,064 Maturity of more than one year2 14 Europe 4,121 3,859 3,878 6,752 6,625 5,360 15 Canada 2,353 3,290 3,595 3,158 3,227 3,290 16 Latin America and Caribbean 45,816 25,774 18,277 16,827 15,092 15,166 17 Asia 4,172 5,165 4,459 4,979 4,815 4,977 18 Africa 2,630 2,374 2,335 2,356 2,107 2,364 19 All other3 684 456 185 263 278 410 1. Reporting banks include all kinds of depository institutions besides commer- 2. Maturity is time remaining to maturity. cial banks, as well as some brokers and dealers. 3. includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • August 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 1991 1992 1993 AArreeaa oorr ccoouunnttrryy 11998899 11999900 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar." 1 Total 338.8 317.8 325.3 320.4 335.7 341.5 347.9 357.4 343.9 345.8 360.6 152.9 132.1 129.9 129.8 134.0 137.2 131.1 136.3 137.5 134.0 144.1 6.3 5.9 6.2 6.1 5.8 6.0 5.3 6.2 6.2 5.6 5.9 11.7 10.4 9.7 10.5 11.1 11.0 10.0 12.0 15.5 15.4 13.7 10.5 10.6 8.8 8.3 9.7 8.3 8.4 8.8 10.9 9.3 10.0 6 Italy 7.4 5.0 4.0 3.6 4.5 5.6 5.4 8.0 6.4 6.5 6.8 3.1 3.0 3.3 3.3 3.0 4.7 4.3 3.3 3.7 2.8 3.7 2.0 2.2 2.0 2.5 2.1 1.9 2.0 1.9 2.2 2.3 3.0 7.1 4.4 3.7 3.3 3.9 3.4 3.2 4.6 5.2 4.8 5.4 67.2 60.8 62.3 59.5 64.9 68.5 64.8 65.9 61.8 61.4 66.5 5.4 5.9 6.8 8.2 5.8 5.8 6.6 6.7 6.7 6.6 8.6 32.2 23.9 23.2 24.6 23.2 22.2 21.1 18.7 18.9 19.2 20.5 21.0 22.9 23.5 21.3 22.1 22.8 21.5 25.5 25.1 24.1 25.6 1.5 1.4 1.4 1.1 1.0 .6 .8 .8 .8 1.2 1.5 1.1 1.1 .9 1.2 .9 .9 .8 1.3 1.5 .9 .8 16 Finland 1.0 .7 1.0 .8 .6 .7 .8 .8 1.0 .7 .7 2.5 2.7 2.5 2.4 2.3 2.6 2.3 2.8 3.0 3.0 2.8 1.4 1.6 1.5 1.5 1.4 1.4 1.5 1.7 1.6 1.2 1.8 19 Portugal .4 .6 .6 .6 .5 .6 .5 .5 .5 .4 .7 20 Spain 7.1 8.3 9.0 7.1 8.3 8.3 7.7 10.1 9.8 9.0 9.6 21 Turkey 1.2 1.7 1.7 1.9 1.6 1.4 1.2 1.5 1.5 1.3 1.4 1.0 1.2 1.2 1.1 1.3 1.8 1.5 2.0 1.5 1.7 2.0 2.0 1.8 1.8 1.8 1.6 1.9 1.8 1.7 1.7 1.7 1.6 1.6 1.8 1.9 2.0 2.4 2.7 2.3 2.3 2.3 2.9 2.8 25 OPEC2 17.1 12.8 17.1 14.0 15.6 14.6 15.8 16.2 15.9 16.1 16.7 1.3 1.0 .9 .9 .8 .7 .7 .7 .7 .6 .6 7.0 5.0 5.1 5.3 5.6 5.4 5.4 5.3 5.4 5.2 5.3 2.0 2.7 2.8 2.6 2.8 2.8 3.0 3.0 3.0 3.0 3.1 5.0 2.5 6.6 3.7 5.0 4.2 5.3 5.9 5.4 6.2 6.7 1.7 1.7 1.6 1.5 1.5 1.5 1.4 1.4 1.4 1.1 1.0 77.5 65.4 66.4 65.0 65.0 64.3 70.2 68.1 72.9 72.2 74.3 Latin America 6.3 5.0 4.7 4.6 4.5 4.8 5.0 5.1 6.2 6.6 7.0 33 Brazil 19.0 14.4 13.9 11.6 10.5 9.6 10.8 10.6 10.8 10.8 11.6 34 Chile 4.6 3.5 3.6 3.6 3.7 3.6 3.9 4.0 4.2 4.4 4.6 1.8 1.8 1.7 1.6 1.6 1.7 1.6 1.6 1.7 1.8 1.9 17.7 13.0 13.7 14.3 16.2 15.5 18.2 16.3 17.1 16.0 16.8 37 Peru .6 .5 .5 .5 .4 .4 .4 .4 .5 .5 .4 38 Other 2.8 2.3 2.2 2.0 1.9 2.1 2.2 2.2 2.5 2.6 2.6 Asia China .3 .2 .4 .6 .4 .3 .3 .3 .3 .7 .6 4.5 3.5 3.6 4.1 4.1 4.1 4.8 4.6 5.0 5.2 5.3 3.1 3.3 3.5 3.0 2.8 3.0 3.6 3.8 3.6 3.2 3.1 .7 .5 .5 .5 .5 .5 .4 .4 .4 .4 .5 43 Korea (South) 5.9 6.2 6.8 6.9 6.5 6.8 6.9 6.9 7.4 6.6 6.5 1.7 1.9 2.0 2.1 2.3 2.3 2.5 2.7 3.0 3.0 3.3 4.1 3.8 3.7 3.7 3.6 3.7 3.6 3.1 3.6 3.6 3.4 1.3 1.5 1.6 1.7 1.9 1.7 1.7 1.9 2.2 2.2 2.2 47 Other Asia3 1.0 1.7 2.1 2.3 2.3 2.4 2.3 2.5 2.7 2.7 2.7 Africa .4 .4 .4 .4 .4 .4 .3 .5 .3 .2 .2 .9 .8 .8 .7 .7 .7 .7 .7 .6 .6 .5 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 1.0 1.0 .8 .8 .8 .7 .7 .6 .9 1.0 1.0 3.5 2.3 2.1 2.1 1.8 2.4 2.9 3.0 3.1 3.1 3.0 .7 .2 .3 .4 .4 .9 1.4 1.7 1.8 1.9 1.7 1.6 1.2 1.0 1.0 .8 .9 .8 .7 .7 .6 .6 55 Other 1.3 .9 .8 .7 .7 .7 .6 .6 .7 .6 .7 36.6 42.5 50.0 48.3 52.7 52.0 58.4 59.4 52.3 55.2 57.5 5.5 2.8 8.3 6.8 6.7 11.9 14.0 12.2 8.1 5.6 8.3 1.7 4.4 4.4 4.2 7.1 2.3 3.9 5.1 3.8 6.2 4.1 9.0 11.5 14.1 14.9 13.8 15.8 17.4 18.1 15.7 20.1 16.4 2.3 7.9 1.1 1.4 3.9 1.2 1.0 .8 .7 1.1 1.6 1.4 1.4 1.5 1.3 1.3 1.3 1.3 1.7 1.8 1.7 1.9 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 9.7 7.7 11.6 12.4 12.1 12.2 12.2 15.0 15.2 13.8 16.7 7.0 6.6 8.9 7.2 7.7 7.1 8.5 6.4 6.8 6.5 8.4 65 Other .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 30.3 39.8 36.4 39.9 44.6 48.2 48.0 48.6 36.8 41.0 39.3 1. The banking offices covered by these data are the U.S. offices and foreign $150 million equivalent in total assets, the threshold now applicable to all branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 2. Organization of Petroleum Exporting Countries, shown individually; other (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, adjusted to exclude the claims on foreign branches held by a U.S. office or another Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally foreign branch of the same banking institution. The data in this table combine members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 3. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 4. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 5. Foreign branch claims only. Since June 1984, reported claims held by foreign branches have been reduced 6. Includes New Zealand, Liberia, and international and regional by an increase in the reporting threshold for "shell" branches from $50 million to organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1991 1992 TTyyppee aanndd aarreeaa oorr ccoouunnttrryy 11998899 11999900 11999911 Sept. Dec. Mar. June Sept. Dec. 1 38,764 46,043 43,156 43,218 43,156 44,098 44,176 45,166 43,066r ? 33,973 40,786 37,764 38,482 37,764 38,640 37,481 36,574 35,661r 3 Payable in foreign currencies 4,791 5,257 5,392 4,736 5,392 5,458 6,695 8,592 7,405r By type 4 17,879 21,066 21,893 21,652 21,893 22,255 21,988 23,406 21,989" 5 Payable in dollars 14,035 16,979 17,781 17,947 17,781 18,027 16,744 16,468 15,642" 6 Payable in foreign currencies 3,844 4,087 4,112 3,705 4,112 4,228 5,244 6,938 6,347" 7 Commercial liabilities 20,885 24,977 21,263 21,566 21,263 21,843 22,188 21,760 21,077" 8 8,070 10,683 8,310 8,313 8,310 8,926 9,516 9,409 9,038" 9 Advance receipts and other liabilities 12,815 14,294 12,953 13,253 12,953 12,917 12,672 12,351 12,039" 10 Payable in dollars 19,938 23,807 19,983 20,535 19,983 20,613 20,737 20,106 20,019" 11 Payable in foreign currencies 947 1,170 1,280 1,031 1,280 1,230 1,451 1,654 1,058 By area or country Financial liabilities 1? 11,660 10,978 11,905 12,311 11,905 12,449 13,030 1144,,007700 1122,,550000"" 13 Belgium and Luxembourg 340 394 217 397 217 174 194 256 427 14 258 975 2,106 2,164 2,106 1,997 2,324 2,785 1,608 15 464 621 682 682 682 666 836 941 740 16 941 1,081 1,056 1,050 1,056 1,025 979 980 606 17 541 545 408 497 408 355 490 627 569 18 United Kingdom 8,818 6,357 6,429 6,589 6,429 7,338 7,344 7,680 7,887" 19 610 229 267 305 267 283 337 320 491 ?0 Latin America and Caribbean 1,357 4,153 4,325 3,883 4,325 4,062 3,323 3,345 3,480 71 157 371 537 314 537 396 343 220 349 7? 17 0 114 0 114 114 114 115 114 73 Brazil 0 0 6 6 6 8 10 18 19 74 British West Indies 724 3,160 3,065 2,961 3,065 2,930 2,182 2,291 2,307 75 6 5 7 6 7 7 8 12 12 26 Venezuela 0 4 4 4 4 4 4 5 6 77 4,151 5,295 5,338 5,149 5,338 5,366 5,209 5,581 5,484" 78 Japan 3,299 4,065 4,102 4,000 4,102 4,107 4,116 4,548 4,451" 29 Middle East oil-exporting countries2 2 5 13 19 13 13 10 17 19 30 2 2 6 3 6 7 0 5 6 31 Oil-exporting countries3 0 0 4 2 4 6 0 0 0 32 Mother4 100 409 52 1 52 88 89 85 28 Commercial liabilities 33 9,071 10,310 7,808 8,084 7,808 7,501 77,,114444 66,,771144 66,,770000"" 34 Belgium and Luxembourg 175 275 248 225 248 256 240 173 287" 35 877 1,218 830 992 830 678 659 688 663" 36 1,392 1,270 944 911 944 880 702 744 617" 37 710 844 709 751 709 574 605 601 556" 38 693 775 488 492 488 482 400 369 398 39 United Kingdom 2,620 2,792 2,310 2,217 2,310 2,445 2,404 2,262 2,250" 40 Canada 1,124 1,261 990 1,011 990 1,095 1,077 1,085 891" 41 Latin America and Caribbean 1,224 1,672 1,352 1,512 1,352 1,701 1,803 1,518 1,586" 47 41 12 3 14 3 13 8 3 6 43 308 538 310 450 310 493 409 338 293" 44 Brazil 100 145 219 211 219 230 212 115 203" 45 British West Indies 27 30 107 46 107 108 73 85 57" 46 323 475 304 291 304 375 475 322 444 47 164 130 94 102 94 168 279 147 130" 48 7,550 9,483 9,330 8,855 9,330 9,890 10,439 11,006 10,772" 49 2,914 3,651 3,720 3,363 3,720 3,549 3,537 3,909 3,994" 50 Middle Eastern oil-exporting countries2, 1,632 2,016 1,498 1,780 1,498 1,591 1,778 1,813 1,961" 51 886 844 713 836 713 644 775 675 556" 52 Oil-exporting countries3 339 422 327 357 327 253 389 337 295" 53 Other4 1,030 1,406 1,070 1,268 1,070 1,012 950 762 572" 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 • August 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. 1 Total 33,173 35,348 42,667 38,315 42,667 42,199 41,869 38,659 38,HOT 2 Payable in dollars 30,773 32,760 40,098 35,952 40,098 39,558 38,899 35,738 35,593r 3 Payable in foreign currencies 2,400 2,589 2,569 2,363 2,569 2,641 2,970 2,921 2,517r By type 4 Financial claims 19,297 19,874 25,463 22,536 2255,,446633 25,328 24,612 21,367 20,922 5 Deposits 12,353 13,577 17,218 16,188 17,218 16,964 15,116 12,547 12,759r 6 Payable in dollars 11,364 12,552 16,343 15,182 16,343 15,803 13,829 11,489 11,97^ 7 Payable in foreign currencies 989 1,025 875 1,006 875 1,161 1,287 1,058 789r 8 Other financial claims 6,944 6,297 8,245 6,348 8,245 8,364 9,4% 8,820 8,163r 9 Payable in dollars 6,190 5,280 7,365 5,611 7,365 7,617 8,771 7,788 7,425 10 Payable in foreign currencies 754 1,017 880 737 880 747 725 1,032 738r 11 Commercial claims 13,876 15,475 17,204 15,779 17,204 16,871 17,257 17,292 17,188r 12 Trade receivables 12,253 13,657 14,479 13,429 14,479 14,266 14,756 14,552 14,910r 13 Advance payments and other claims 1,624 1,817 2,725 2,350 2,725 2,605 2,501 2,740 2,278 14 Payable in dollars 13,219 14,927 16,390 15,159 16,390 16,138 16,299 16,461 16,198r 15 Payable in foreign currencies 657 548 814 620 814 733 958 831 990r By area or country Financial claims 16 Europe 8,463 9,645 13,546 13,129 13,546 14,205 13,200 11,249 9,346 17 Belgium and Luxembourg 28 76 13 76 13 12 25 16 8 18 France 153 371 312 255 312 277 786 809 774 19 Germany 152 367 342 434 342 290 381 321 401 20 Netherlands 238 265 385 420 385 727 732 766 536 21 Switzerland 153 357 591 580 591 682 779 602 507 22 United Kingdom 7,4% 7,971 11,251 10,997 11,251 11,631 8,768 7,727 5,947 23 Canada 1,904 2,934 2,679 2,163 2,679 2,750 2,529 2,256 1,701 24 Latin America and Caribbean 8,020 6,201 7,932 6,289 7,932 7,070 7,260 6,523 8,505 25 Bahamas 1,890 1,090 758 652 758 415 523 1,099 618r 26 Bermuda 7 3 8 19 8 12 12 65 40 27 Brazil 224 68 192 137 192 191 181 135 4% 28 British West Indies 5,486 4,635 6,384 5,106 6,384 5,912 6,018 4,792 6,719" 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 %1 1,275 995 839 32 Japan 213 523 385 277 385 380 712 481 683 33 Middle East oil-exporting countries2 8 8 5 3 5 3 4 4 3 34 Africa 140 37 57 61 57 60 57 66 79 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 7,451r 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 6% 807 943 858 943 936 908 885 883 41 Netherlands 479 555 643 641 643 646 666 588 541 42 Switzerland 313 301 295 258 295 328 399 294 260 43 United Kingdom 1,575 1,775 2,088 1,807 2,088 2,086 2,173 1,977 l,802r 44 Canada 1,091 1,074 1,174 1,232 1,174 1,176 1,131 1,172 l,252r 45 Latin America and Caribbean 2,184 2,375 2,591 2,494 2,591 2,572 2,672 3,141 2,845r 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 39 50 Mexico 508 661 829 741 829 892 847 968 853r 51 Venezuela 147 192 202 1% 202 206 251 302 317r 5? Asia 3,570 4,127 4,573 4,282 4,573 4,354 4,463 4,308 4,649" 53 Japan 1,199 1,460 1,878 1,808 1,878 1,782 1,786 1,793 1,850" 54 Middle Eastern oil-exporting countries2 518 460 621 4% 621 635 609 512 669" 55 Africa 429 488 418 431 418 418 422 430 540" 56 Oil-exporting countries 108 67 95 80 95 75 73 66 78r 57 Other4 393 367 498 456 498 457 431 449 45 lr 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 1992 Jan.- Oct. Nov. Dec. Jan. Feb. Mar.r Apr.P Apr. U.S. corporate securities STOCKS 1 Foreign purchases 211,207 221,350 99,942 18,820 17,885 22,725 19,170 28,753r 27,011 25,008 200,116 226,490 95,213 18,170 16,598 20,382 19,353 25,980 24,548 25,332 2 Foreign sales 11,091 -5,140 4,729 650 1,287 2,343 -183 2,773r 2,463 -324 3 Net purchases or sales (-) — 10,522 -5,173 4,479 653 1,284 2,319 -178 2,683r 2,306 -332 4 Foreign countries 53 -4,934 2,647 75 371 1,505 52 2,271r 973 -649 5 Europe 9 -1,331 -139 -92 -50 -154 -25 223 -183 -154 6 France -63 -64 435 -52 47 162 91 97 103 144 7 Germany -227 -280 153 -24 -4 190 64 -11 68 32 8 Netherlands -131 143 1,339 -124 -40 221 205 501 356 277 9 Switzerland -352 -3,294 124 362 361 705 -350 l,135r 476 -1,137 10 United Kingdom 3,845 1,405 -5 -227 43 176 -341 57 176 103 11 Canada 2,177 2,209 721 235 649 422 305 -235 410 241 12 Latin America and Caribbean , -134 -88 -163 -57 -219 70 -92 -65 -13 7 13 Middle East' 4,255 -3,944 1,234 767 373 122 -123 593 763 1 14 Other Asia 1,179 -3,598 -877 184 220 215 28 -624 250 -531 15 Japan 153 10 -15 -21 -18 -7 4 27 2 -48 16 Africa 174 169 60 -119 85 31 17 35 -5 13 17 Other countries 18 Nonmonetary international and regional organizations — 568 33 250 -3 3 24 -5 90 157 8 BONDS2 19 Foreign purchases 153,096 214,801 85,229 19,315 18,082 19,264 17,417 21,754 25,204 20,854 20 Foreign sales 125,637 175,310 73,568 15,224 16,317 15,513 15,439 18,676r 23,273 16,180 21 Net purchases or sales (-) — 27,459 39,491 11,661 4,091 1,765 3,751 1,978 3,078r 1,931 4,674 22 Foreign countries 27,590 38,375 12,060 4,045 1,600 3,206 2,074 3,204r 2,067 4,715 23 Europe 13,112 18,314 4,808 1,993 -492 1,9% 1,302 2,183r 29 1,294 2 2 3 2 2 2 2 3 3 3 4 5 1 6 7 8 9 0 2 3 M C O La a t i J G F U N S h t d n a i r w e d a n e n e p a r d r l t i i a n e h m t A t a A n e z c e d E m a e e s r n r l i a e a l a K y s a r n t n i i ' d c n d a s g d a o n m d Caribbean 8 5 2 8 1 1 1 , , , , , , , 9 6 4 7 6 8 7 5 4 6 3 7 5 6 8 7 4 5 8 2 1 2 9 7 7 7 7 6 2 3 1 7 3 2 8 - 1 3 - , , , 5 , 4 , , 1 5 5 8 2 2 2 5 1 5 6 0 4 3 2 2 3 3 3 0 6 3 5 3 1 9 1 6 3 2 3 1 - 1 - 1 , , , 3 , , 1 0 9 7 2 8 8 1 4 2 4 7 9 2 1 9 0 1 4 2 4 4 5 3 6 7 1 8 1 - - , 2 4 7 8 5 1 1 3 2 - 7 6 4 6 9 9 3 4 4 3 3 7 2 8 0 8 3 - - - 1 3 2 5 6 5 2 2 1 - 1 1 6 1 8 4 9 6 4 7 3 2 0 5 1 0 2 6 4 - 3 5 % 2 8 1 1 3 6 1 5 1 4 0 1 8 2 0 7 7 3 9 8 5 9 - - 4 1 3 4 3 3 1 1 1 3 1 9 0 1 0 4 0 2 9 7 9 1 0 9 5 9 1 2 0 2 - , 1 - 4 2 4 3 1 1 3 3 4 1 5 1 8 6 4 4 8 3 8 6 2 1 2 1 5 9 r - 1 - 2 1 - , 2 4 5 2 1 5 2 7 6 9 7 9 1 1 1 7 9 8 3 0 5 5 6 9 1 2 -2 ,0 4 5 9 2 6 6 8 1 3 0 4 6 1 3 0 9 5 0 9 8 6 3 1 2 8 1 5 8 34 Africa 52 354 185 -50 -4 302 168 27 -10 0 35 Other countries -116 -73 -64 -1 68 -46 17 -30 -40 -11 36 Nonmonetary international and regional organizations -131 1,116 -399 46 165 545 -96 -126 -136 -41 Foreign securities 4 3 3 3 0 7 8 9 B St o o F F n c o o d k r r s e s e , , i j g g n n n n e e t t p s p a p u u l u r e r c r s c h c h h a a s a s e s e s e s s o o r r s s a a l l e e s s ( ( - - ) ) - - 1 1 3 1 2 5 1 4 0 2 , , , , 9 8 5 5 6 2 9 6 7 8 8 5 - - 1 1 3 1 4 8 2 8 9 2 , , , , 1 4 9 1 8 7 8 7 6 0 7 3 - -2 1 6 7 0 2 4 6 , , , , 2 4 3 8 7 9 % 9 5 8 4 - - 1 1 4 2 2 6 , , , 2 , 2 4 7 6 0 7 3 0 5 7 7 - 1 1 3 1 5 - , 7 , , 6 6 3 9 3 7 0 1 6 2 8 - - 1 1 4 2 2 7 , , , , 3 8 7 1 6 7 8 4 8 4 1 9 - - 1 1 2 5 5 2 , , , 3 , 1 0 7 3 0 6 2 7 0 3 6 — - 1 1 9 5 6 , l 5 , , , 0 6 5 6 4 1 6 2 7 3 6 r r r r - - 2 1 4 4 1 7 , , , , 6 5 9 4 4 2 6 4 7 4 5 1 - 2 1 3 3 9 - , , 9 , % 2 2 6 5 8 9 6 3 4 4 4 1 2 F F o o r r e e i i g g n n p sa u l r e c s h ases 3 3 4 3 5 0 , , 1 3 3 1 9 1 5 4 0 8 4 5 , , 1 6 2 5 9 9 2 2 3 1 9 9 , , 6 3 0 2 0 5 4 51 9 , , 8 6 7 7 5 0 5 52 2 , , 8 0 5 6 7 6 4 3 2 9 , , 4 6 8 0 1 7 4 3 3 8 , , 5 4 1 1 1 1 6 5 5 5 , , 2 7 7 1 9 7 * 7 7 4 0 , , 6 0 6 2 8 1 5 5 6 5 , , 1 1 4 7 2 6 43 Net purchases or sales (-), of stocks and bonds -46,795 -50,656 -32,671 -6,465 -4,427 -7,242 -7,437 —ll,128r -9,171 -4,935 —11,266" 44 Foreign countries -46,711 -53,992 -31,805 -6,492 -4,500 -7,196 -6,430 -8,902 -5,207 45 Europe -34,452 -38,109 -19,153 -6,851 -5,001 -4,516 -6,478 -6,703r -3,095 -2,877 4 4 4 4 5 7 8 9 6 0 A A O L C a a s f th r t i n a i i e n a c r d a A a c o m u e n r t i r c i a e s a nd Caribbean - - 7 7 1 , , , 0 3 3 7 - 0 5 4 5 9 4 0 5 9 - - - 6 6 1 - , , , 7 - 5 6 8 5 6 8 5 3 7 0 3 3 0 - - 2 9 - - , , 1 6 8 - 0 4 1 0 4 3 0 8 7 8 9 -1 1 - , 4 , 0 6 0 - 0 0 8 9 2 3 8 1 1 -1 1 , , 6 5 5 - 7 4 6 7 8 1 2 7 1 - - 1 1 - , , 3 - 6 1 5 1 4 6 7 1 1 4 7 0 2 - - 1 3 4 1 - 6 8 0 9 7 1 1 2 5 -5 - , 1 0 5 0 2 4 2 7 8 3 4 5 r r - - 3 2 - , , 3 - 0 4 1 6 3 5 6 8 4 4 9 8 - - - 5 8 9 - -4 1 1 1 3 9 8 1 6 6 51 Nonmonetary international and regional organizations -84 3,336 -866 27 73 -46 -1,007 138 -269 272 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 • August 1993 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1993 1992 1993 Country or area 1991 1992 Jan.- Oct. Nov. Dec. Jan. Feb. Mar. Apr." Apr. Transactions, net purchases or sales (-) during period1 1 Estimated total 19,865 39,319 9,529 3,546 17,648 8 454 -1,273 5,910r 4,438 2 Foreign countries 19,687 37,966 7,645 4,351 17,661 -194 -129 -2,166 5,358r 4,582 3 Europe 8,663 19,647 -3,340 4,671 7,284 3,163 -585 -382 -4,045r 1,672 4 Belgium and Luxembourg 523 1,985 263 232 370 -28 -59 45 622r -345 5 Germany -4,725 2,076 -5,074 -8 -1,584 898 697 -1,632 -2,757 -1,382 6 Netherlands -3,735 -2,923 -235 -40 1,827 -804 -1,238 206 66r 731 7 Sweden -663 -804 -436 202 668 -344 -54 258 -540 -100 R Switzerland 1,007 481 -2,944 769 1,334 213 -199 -455 -1,569 -721 9 United Kingdom 6,218 24,184 5,563 4,068 7,209 2,833 2,025 183 672 2,683 10 Other Western Europe 10,024 -6,002 -845 -551 -2,758 395 -1,759 975 -728r 667 11 Eastern Europe 13 650 368 -1 218 0 2 38 189 139 12 Canada -3,019 562 7,260 458 -1,087 -99 3,302 82 2,490 1,386 13 Latin America and Caribbean 10,285 -3,223 -3,602 -1,915 7,270 -4,519 -1,495 445 -537r -2,015 14 Venezuela 10 539 232 155 27 11 -175 179 154 74 IS Other Latin America and Caribbean 4,179 -1,957 -4,335 -3,233 2,385 415 -3,309 -1,656 -471 1,101 16 Netherlands Antilles 6,097 -1,805 501 1,163 4,858 -4,945 1,989 1,922 -220r -3,190 17 3,367 23,526 8,890 1,416 4,000 1,188 -1,136 -1,032 7,215 3,843 18 Japan -4,081 9,817 6,866 -339 3,383 2,201 -743 804 3,457 3,348 19 689 1,103 -171 -37 119 0 -33 -139 -66 67 20 -298 -3,649 -1,392 -242 75 73 -182 -1,140 301r -371 21 Nonmonetary international and regional organizations 178 1,353 1,884 -805 -13 202 583 893 552 -144 77 International -358 1,018 654 -903 -38 76 228 581 56 -211 23 Latin American regional -72 533 522 219 -31 97 270 235 1 16 MEMO 74 Foreign countries 19,687 37,966 7,645 4,351 17,661 -194 -129 -2,166 5,358r 44,,558822 75 Official institutions 1,190 6,876 -5,398 2,951 -603 -719 -2,%5 -4,364 -657r 2,588 26 Other foreign 18,4% 31,090 13,043 1,400 18,264 525 2,836 2,198 6,015r 1,994 Oil-exporting countries 77 Middle East2 -6,822 4,323 -1,182 -271 407 511 -238 --11,,885555 811 110000 28 239 11 2 0 0 0 8 0 0 -6 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 May 28, 1993 Rate on May 28, 1993 Rate on May 28, 1993 Country Country CCoouunnttrryy 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 A B C e a u l n s g t a i r u d i m a a . . . . . 6 6 4 . . . 7 2 7 5 5 9 J A M u p a n r y e . 1 1 1 9 9 9 9 9 9 3 3 3 G J It a a e p l r y a m n any... 1 7 2 0 . . . 2 5 0 5 A J Ju u p l n y r e . 1 1 1 9 9 9 9 9 9 2 3 3 United Kingdom 1 7 5 2 . . . 0 7 0 5 A M Se p a p r r . t . . 1 1 1 9 9 9 9 9 9 3 3 2 Denmark 8.25 May 1993 Netherlands 6.25 May 1993 France2.. 7.0 June 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 Type or country 1990 1991 1992 Dec. Jan. Feb. Mar. Apr. May June 2 4 5 6 3 7 1 G C U F N S E w r a e u n e a n r t r i i n m h t o t a e z c e d d d a e e r o a n r l l l a y K l a n a n i d r n d s s g dom. 1 1 1 1 8 8 8 8 4 3 2 0 . . . . . . . . 4 5 7 1 7 1 0 2 1 7 1 6 1 3 0 0 1 1 9 9 9 9 5 8 1 2 . . . . . . . . 0 1 1 8 4 4 0 0 7 5 9 6 9 7 4 1 1 1 9 6 9 7 9 3 0 3 . . . . . . . . 2 5 4 6 7 7 9 1 5 6 2 7 6 0 1 4 1 1 7 6 3 7 8 8 0 3 . . . . . . . . 1 9 1 5 5 9 7 6 3 3 1 0 5 3 5 0 1 1 6 7 8 5 8 3 1 2 . . . . . . . . 8 5 5 0 2 0 5 6 8 2 0 0 2 3 6 9 1 1 6 6 8 5 7 3 1 1 . . . . . . . . 3 2 9 1 3 4 7 1 4 9 8 2 8 3 0 0 1 1 7 7 3 5 5 5 1 0 . . . . . . . . 8 4 0 1 9 5 8 2 5 7 6 5 1 1 9 9 1 7 4 7 3 5 8 5 1 . . . . . . . . 8 9 4 1 9 7 4 4 1 7 3 0 0 3 3 1 1 5 7 4 6 7 3 5 0 . . . . . . . . 9 4 9 9 1 2 4 7 1 1 7 8 2 9 8 4 1 4 7 4 6 7 3 5 0 . . . . . . . . 6 5 9 9 2 1 8 1 4 1 9 1 1 9 3 8 8 Italy 9.70 9.30 9.31 8.65 8.19 8.75 8.27 7.94 7.16 6.87 9 Belgium 7.75 7.33 4.39 3.76 3.70 3.27 3.26 3.22 3.24r 3.23 10 Japan 1. Rates are for three-month interbank loans, with the following exceptions: Canada, finance company paper; Belgium, three-month Treasury bills; and Japan, CD rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • August 1993 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1993 Country/currency unit 1990 1992 Jan. Feb. Apr. May June 1 Australia/dollar2 78.069 77.872 73.521 67.297 68.294 70.775 71.155 69.859 67.492 2 Austria/schilling 11.331 11.686 10.992 11.368 11.556 11.586 11.234 11.305 11.637 3 Belgium/franc 33.424 34.195 32.148 33.239 33.841 33.919 32.857 33.044 34.009 4 Canada/dollar 1.1668 1.1460 1.2085 1.2779 1.2602 1.2471 1.2621 1.2698 1.2789 5 China, P.R./yuan 4.7921 5.3337 5.5206 5.77% 5.7874 5.7455 5.7202 5.7392 5.7504 6 Denmark/krone 6.1899 6.4038 6.0372 6.2319 6.3019 6.3242 6.1339 6.1751 6.3380 7 Finland/markka 3.8300 4.0521 4.4865 5.4242 5.8534 5.9767 5.6190 5.4847 5.5674 8 France/franc 5.4467 5.6468 5.2935 5.4751 5.5594 5.5944 5.3984 5.4180 5.5700 9 Germany/deutsche mark. 1.6166 1.6610 1.5618 1.6144 1.6414 1.6466 1.5964 1.6071 1.6547 10 Greece/drachma 158.59 182.63 190.81 215.97 220.60 223.57 217.90 218.12 225.45 11 Hong Kong/dollar 7.7899 7.7712 7.7402 7.7376 7.7335 7.7332 7.7306 7.7290 7.7362 12 India/rupee 17.492 22.712 28.156 29.043 30.042 31.939 31.610 31.613 31.668 13 Ireland/pound 165.76 161.39 170.42 163.37 148.11 147.58 152.75 151.65 147.47 14 Italy/lira 1,198.27 1,241.28 1,232.17 1,491.07 1,550.43 1,591.35 1,536.14 1,475.66 1,505.05 15 Japan/yen 145.00 134.59 126.78 124.99 120.76 117.02 112.41 110.34 107.41 16 Malaysia/ringgit 2.7057 2.7503 2.5463 2.5985 2.6295 2.6051 2.5777 2.5661 2.56% 17 Netherlands/guilder 1.8215 1.8720 1.7587 1.8155 1.8473 1.8507 1.7942 1.8026 1.8559 18 New Zealand/dollar2 59.619 57.832 53.792 51.270 51.603 53.026 53.904 54.290 53.949 19 Norway/krone 6.2541 6.4912 6.2142 6.8721 6.9779 6.9989 6.7399 6.8027 6.9986 20 Portugal/escudo 142.70 144.77 135.07 145.36 149.89 152.17 148.25 151.89 157.63 21 Singapore/dollar 1.8134 1.7283 1.6294 1.6527 1.6463 1.6446 1.6228 1.6136 1.6175 22 South Africa/rand 2.5885 2.7633 2.8524 3.0713 3.1313 3.1790 3.1718 3.1787 3.2408 23 South Korea/won 710.64 736.73 784.58 794.87 799.25 7%.42 798.61 803.19 805.91 24 Spain/peseta 101.96 104.01 102.38 114.62 117.51 117.71 115.64 121.30 127.11 25 Sri Lanka/rupee 40.078 41.200 44.013 46.307 46.351 47.069 47.712 47. %5 48.073 26 Sweden/krona 5.9231 6.0521 5.8258 7.2536 7.5566 7.7362 7.4500 7.3271 7.4541 27 Switzerland/franc 1.3901 1.4356 1.4064 1.4774 1.5178 1.5206 1.4599 1.4504 1.4769 28 Taiwan/dollar 26.918 26.759 25.160 25.452 25.837 26.026 25.987 25.978 26.267 29 Thailand/baht 25.609 25.528 25.411 25.523 25.508 25.425 25.251 25.234 25.214 30 United Kingdom/pound2 178.41 176.74 176.63 153.25 143.95 146.17 154.47 154.77 150.82 MEMO 31 United States/dollar3 89.09 89.84 86.61 92.36 93.65 90.62 90.24 91.81 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 June 30, 1992 November 1992 A70 September 30, 1992 February 1993 A70 December 31, 1992 May 1993 A70 March 31, 1993 August 1993 A70 Terms of lending at commercial banks August 1992 November 1992 A76 November 1992 February 1993 A76 February 1993 May 1993 A76 May 1993 August 1993 A76 Assets and liabilities of U.S. branches and agencies of foreign banks June 30, 1992 November 1992 A80 September 30, 1992 February 1993 A80 December 31, 1992 May 1993 A80 March 31, 1993 August 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 Special Tables • August 1993 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, March 31, 1993 Millions of dollars except as noted Banks with foreign offices2 Banks with domestic offices only IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets4 3,487,345 1,919,690 451,335 1,551,862 1,224,384 343,271 2 Cash and balances due from depository institutions 264,870 182,001 80,623 101,378 64,178 18,691 3 Cash items in process of collection, unposted debits, and currency and coin 4[ 71,403 1,646 69,757 33,643 4 4 Cash items in process of collection and unposted debits n.a. n.a. 53,555 21,571 T 5 Currency and coin I n.a. n.a. 16,202 12,072 I 6 Balances due from depository institutions in the United States n.a. 27,498 18,691 8,807 16,465 n.a. 7 Balances due from banks in foreign countries and foreign central banks I 63,113 60,005 3,109 2,562 1 8 Balances due from Federal Reserve Banks • 19,987 281 19,706 11,510 T MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. n.a. 5,887 12,807 7,468 10 Total securities, loans and lease financing receivables, net 2,897,073 1,486,638 n.a. n.a. 1,099,352 311,083 11 Total securities, book value 793,593 328,999 29,990 299,009 345,821 118,774 12 U.S. Treasury securities and U.S. government agency and corporation obligations 627,992 225511,,115511 5,351 224455,,880000 228800,,774477 %%,,009933 13 U.S. Treasury securities n.a. 95,379 2,802 92,577 118,415 n.a. 14 U.S. government agency and corporation obligations n.a. 155,772 2,549 153,223 162,333 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 165,291 8811,,008866 2,202 7788,,888855 6655,,119955 19,010 16 All other n.a. 74,686 348 74,338 97,138 n.a. 17 Securities issued by states and political subdivisions in the United States 71,194 19,723 559 19,164 35,550 15,921 18 Other domestic debt securities n.a. 27,806 219 27,587 23,990 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 5,018 22,,664422 0 22,,664422 22,,224455 113300 20 All other domestic debt securities 52,118 25,164 219 24,945 21,745 5,208 21 Foreign debt securities n.a. 24,0% 22,817 1,279 281 n.a. 22 Equity securities 12,8% 6,222 1,043 5,179 5,253 1,421 23 Marketable 5,620 1,882 188 1,695 2,765 973 74 Investments in mutual funds 3,717 1,133 22 1,111 1,699 885 75 Other 1,950 751 165 585 1,088 112 76 LESS: Net unrealized loss 47 1 0 1 22 23 27 Other equity securities 7,275 4,339 855 3,484 2,488 448 28 Federal funds sold and securities purchased under agreements to resell 149,323 76,183 2% 75,887 54,466 18,673 29 Federal funds sold 126,086 56,717 n.a. n.a. 50,855 18,514 30 Securities purchased under agreements to resell 23,237 19,466 n.a. n.a. 3,612 159 31 Total loans and lease financing receivables, gross 2,016,369 1,119,284 205,167 914,117 719,070 178,015 32 LESS: Unearned income on loans 7,848 2,826 925 1,901 3,809 1,213 33 Total loans and leases (net of unearned income) 2,008,521 1,116,458 204,242 912,217 715,261 176,802 34 LESS: Allowance for loan and lease losses 54,008 34,647 n.a. n.a. 16,197 3,165 35 LESS: Allocated transfer risk reserves 356 356 n.a. n.a. 0 0 36 EQUALS: Total loans and leases, net 1,954,157 1,081,456 n.a. n.a. 699,064 173,637 Total loans, gross, by category 37 Loans secured by real estate 860,184 339911,,118844 2222..880022 336688,,338822 337700,,556677 9988,,443344 38 Construction and land development 4 4 4 40,901 26,933 5,625 39 Farmland T T T 1,995 7,561 10,393 40 One- to four-family residential properties 1 I I 204,946 200,762 53,858 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 39,793 30,903 2,820 42 1 1 I 165,153 169,859 51,038 43 Multifamily (five or more) residential properties 1 1 I 12,308 12,892 2,119 44 Nonfarm nonresidential properties • T • 108,231 122,418 26,439 45 Loans to depository institutions 36,390 29,048 16,188 12,860 7,184 159 46 Commercial banks in the United States n.a. 10,564 540 10,024 6,653 n.a. 47 Other depository institutions in the United States n.a. 560 55 505 221 n.a. 48 Banks in foreign countries n.a. 17,924 15,593 2,331 310 n.a. 49 Loans to finance agricultural production and other loans to farmers 33,038 4,977 233 4,745 10,748 17,313 50 Commercial and industrial loans 530,702 372,519 93,191 279,328 128,223 29,960 51 U.S. addressees (domicile) n.a. 297,372 20,813 276,559 127,779 n.a. 52 Non-U.S. addressees (domicile) n.a. 75,147 72,377 2,769 444 n.a. 53 1,969 1,310 800 510 478 180 54 U.S. banks n.a. 358 2 356 n.a. n.a. 55 n.a. 952 797 155 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 379,086 173,003 20,716 152,287 176,833 29,250 57 Credit cards and related plans 130,780 68,108 n.a. n.a. 61,171 1,500 58 Other (includes single payment and installment) 248,306 104,895 n.a. n.a. 115,662 27,749 59 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 23,725 1122,,661188 216 12,402 9,959 1,149 60 Taxable 1,483 948 91 857 495 40 61 22,242 11,670 124 11,546 9,464 1,108 62 116,706 106,667 47,487 59,180 8,908 1,131 63 Loans to foreign governments and official institutions n.a. 24,757 23,492 1,265 83 n.a. 64 n.a. 81,910 23,995 57,915 8,825 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 15,964 1,817 n.a. 66 All other loans n.a. n.a. n.a. 41,951 7,008 n.a. 67 Lease financing receivables 34,569 27,959 3,536 24,423 6,171 440 68 Assets held in trading accounts 93,678 92,044 57,112 34,782 1,466 168 69 Premises and fixed assets (including capitalized leases) 53,443 28,743 i n.a. 19,049 5,651 70 Other real estate owned 25,523 16,059 T n.a. 7,770 1,694 71 Investments in unconsolidated subsidiaries and associated companies 3,463 2,961 1 n.a. 455 47 72 Customers' liability on acceptances outstanding 14,536 14,171 n.a. n.a. 350 15 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. 1 51,858 n.a. n.a. 74 Intangible assets 16,114 9,300 1 n.a. 6,392 422 75 Other assets 118,646 87,774 y n.a. 25,371 5,502 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20—Continued Banks with foreign offices2 Bank o s f f w ic i e th s o d n o l n y iestic Item Total Total Foreign Over 100 Under 100 76 Total liabilities, limited-life preferred stock and equity capital 3,487,345 1,919,690 1,224,384 7 7 7 8 To L ta i l m l i i t a e b d i li l t i i f e e s 5 p referred stock 3,215,795 4 1,784,0009 45 n 1 . , a 3 . 26 1,4 n 1 . 6 a , . 190 1,121,4731 79 Total deposits 2,633,309 1,323,315 304,354 1,018,960 1,006,453 80 Individuals, partnerships, and corporations 191^662 946,857 939,222 81 U.S. government 2,891 1,823 8 8 2 3 C St o a m te m s e a r n c d i a p l o b l a it n ic k a s l i s n u t b h d e i v U is n i i o t n e s d i S n ta th te e s United States n1.a. 1 3 1 0 8 , , 8 9 8 1 5 5 45 8 , , 9 3 9 6 7 9 84 Other depository institutions in the United States 3,423 4,461 85 Banks in foreign countries 6,032 132 86 Foreign governments and official institutions 22,607 21,616 991 57 87 Certified and official checks 18,049 9,779 812 8,967 6,392 88 All other 90,265 n.a. n.a. 89 Total transaction accounts 361,745 297,507 90 Individuals, partnerships, and corporations 311,141 266,034 91 U.S. government 2,429 1,475 92 States and political subdivisions in the United States 12,860 16,219 93 Commercial banks in the United States 17,431 6,027 94 Other depository institutions in the United States 2,526 1.230 95 Banks in foreign countries 5,628 119 96 Foreign governments and official institutions 762 11 97 Certified and official checks 8,967 6,392 98 All other n.a. n.a. 99 Demand deposits (included in total transaction accounts) 255,517 162,999 100 Individuals, partnerships, and corporations 209,872 141,985 101 U.S. government 2,207 1,384 102 States and political subdivisions in the United States 8,130 5,897 103 Commercial banks in the United States 17,431 6,002 104 Other depository institutions in the United States 2,526 1,209 105 Banks in foreign countries 5,624 119 106 Foreign governments and official institutions 761 11 107 Certified and official checks 8,967 6,392 108 All other n.a. n.a. 109 Total nontransaction accounts 657,215 708,946 110 Individuals, partnerships, and corporations 635,715 673,188 111 U.S. government 462 348 112 States and political subdivisions in the United States 18,025 29,778 113 Commercial banks in the United States 1,484 2,342 114 U.S. branches and agencies of foreign banks 130 107 115 Other commercial banks in the United States 1,354 2,235 116 Other depository institutions in the United States 897 3.231 117 Banks in foreign countries 404 13 118 Foreign branches of other U.S. banks 12 8 H9 Other banks in foreign countries 392 4 120 Foreign governments and official institutions 229 47 121 All other 122 Federal funds purchased and securities sold under agreements to repurchase— 268,454 198,386 448 197,938 67,448 123 Federal Rinds purchased 165,530 128,646 n.a. n.a. 35,904 124 Securities sold under agreements to repurchase 102,924 69,740 n.a. n.a. 31,544 125 Demand notes issued to the U.S. Treasury n.a. n.a. n.a. 11,191 3,027 126 Other borrowed money 144,383 118,163 48,605 69,558 25,130 127 Banks' liability on acceptances executed and outstanding 14,630 14,265 3,275 10,990 350 128 Notes and debentures subordinated to deposits 34,228 32,235 n.a. n.a. 1,954 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. n.a. 31,649 n.a. 130 All other liabilities 106,258 86,455 n.a. n.a. 17,110 131 Total equity capital7 271,547 135,681 n.a. n.a. 102,910 MEMO 132 Holdings of commercial paper included in total loans, gross 1,622 295 1,326 1,504 133 Total individual retirement accounts (IRA) and Keogh plan accounts 63,362 67,976 134 Total brokered deposits 27,270 15,875 135 Total brokered retail deposits 18,913 13,616 136 Issued in denominations of $100,000 or less 998 2,948 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 17,915 10,668 138 Money market deposit accounts (savings deposits; MMDAs) 234,160 177,952 139 Other savings deposits (excluding MMDAs) 124,190 134,349 140 Total time deposits of less than $100,000 198,977 307 141 Time certificates of deposit of $100,000 or more 85,394 86,396 142 Open-account time deposits of $100,000 or more 14,495 3,004 143 All negotiable order of withdrawal (NOW) accounts (including Super NOWs)... 105,259 132,019 144 Total time and savings deposits 763,444 843,454 Quarterly averages 145 Total loans 892,030 704,044 146 Obligations (other than securities) of states and political subdivisions in the United States 13,106 9,802 147 Transaction accounts in domestic offices (NOW accounts, automated transfer service (ATS) accounts, and telephone ared preauthorized transfer accounts) 106,459 132,508 Nontransaction accounts in domestic offices 148 Money market deposit accounts 236,832 176,889 149 Other savings deposits 122,063 131,029 150 Time certificates of deposit of $100,000 or more 88,227 85,326 151 All other time deposits 224,676 311,653 152 Number of banks 11,283 208 2,915 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • August 1993 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1 Consolidated Report of Condition, March 31, 1993 Millions of dollars except as noted Members Total Total National State 1 Total assets4 2,776,246 2,159,025 1,672,096 486,929 2 Cash and balances due from depository institutions 165,557 135,855 105,468 30,387 3 Cash items in process of collection and unposted debits 75,126 66,561 53,152 13,409 4 Currency and coin 28,274 23,017 18,606 4,412 5 Balances due from depository institutions in the United States 25,271 15,950 12,656 3,293 6 Balances due from banks in foreign countries and foreign central banks 5,670 4,215 3,516 699 7 Balances due from Federal Reserve Banks 31,216 26,112 17,538 8,574 8 Total securities, loans, and lease financing receivables, (net of unearned income) 2,402,661 1,843,985 1,449,043 394,942 9 Total securities, book value 644,830 489,387 367,787 121,601 10 U.S. Treasury securities 210,992 156,863 121,012 35,851 11 U.S. government agency and corporation obligations 315,555 245,992 184,468 61,524 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 144,080 117,150 88,158 28,991 13 All other 171,476 128,843 96,310 32,533 14 Securities issued by states and political subdivisions in the United States 54,713 38,279 26,992 11,287 15 Other domestic debt securities 51,578 39,911 28,255 11,656 16 All holdings of private certificates of participation in pools of residential mortgages .. 4,887 4,136 3,519 618 17 All other 46,690 35,775 24,736 11,039 18 Foreign debt securities 1,560 1,050 979 72 19 Equity securities 10,432 7,292 6,081 1,211 20 Marketable 4,459 2,117 1,887 230 21 Investments in mutual funds 2,810 1,408 1,319 89 22 Other 1,673 718 576 143 23 LESS: Net unrealized loss 23 10 8 2 24 Other equity securities 5,972 5,175 4,194 981 25 Federal funds sold and securities purchased under agreements to resell8 130,353 106,187 82,096 24,090 26 Federal fiinds sold 50,855 33,825 29,225 4,600 27 Securities purchased under agreements to resell 3,612 2,410 1,529 881 28 Total loans and lease financing receivables, gross 1,633,187 1,252,209 1,001,806 250,403 29 LESS: Unearned income on loans 5,710 3,798 2,646 1,152 30 Total loans and leases (net of unearned income) 1,627,477 1,248,411 999,160 249,251 Total loans, gross, by category 31 Loans secured by real estate 738,948 548,009 444,699 103,310 32 Construction and land development 67,834 51,580 42,206 9,374 33 Farmland 9,557 5,635 4,759 876 34 One- to four-family residential properties 405,708 307,536 250,551 56,986 35 Revolving, open-end and extended under lines of credit 70,696 53,983 44,007 9,976 36 All other loans 335,012 253,553 206,544 47,010 37 Multifamily (five or more) residential properties 25,200 17,823 14,135 3,688 38 Nonfarm nonresidential properties 230,649 165,435 133,048 32,386 39 Commercial banks in the United States 16,676 12,286 9,877 2,408 40 Other depository institutions in the United States 726 534 467 66 41 Banks in foreign countries 2,641 2,301 1,215 1,086 42 Finance agricultural production and other loans to farmers 15,492 10,584 9,226 1,358 43 Commercial and industrial loans 407,551 328,666 259,999 68,667 44 U.S. addressees (domicile) 404,338 325,821 257,658 68,163 45 Non-U.S. addressees (domicile) 3,213 2,845 2,340 504 46 Acceptances of other banks9 989 744 605 139 47 U.S. banks 476 310 188 121 48 Foreign banks 390 381 371 10 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 329,120 242,605 199,175 43,430 50 Credit cards and related plans 61,171 42,292 38,737 3,555 51 Other (includes single payment and installment) 115,662 70,412 56,259 14,153 52 Loans to foreign governments and official institutions 1,348 1,319 807 512 53 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 22,361 18,102 13,073 5,029 54 Taxable 1,352 1,095 730 364 55 Tax-exempt 21,009 17,007 12,343 4,664 56 Other loans 66,740 61,538 42,095 19,443 57 Loans for purchasing and carrying securities 17,781 16,213 8,492 7,721 58 All other loans 48,958 45,325 33,603 11,722 59 Lease financing receivables 30,594 25,523 20,568 4,955 60 Customers' liability on acceptances outstanding 11,202 10,526 7,720 2,806 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 51,858 46,514 23,962 22,553 62 Remaining assets 196,827 168,659 109,866 58,794 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members Item Total National State 63 Total liabilities and equity capital 2,776,246 2,159,025 1,672,096 486,929 64 Total liabilities5 2,537,663 1,974,948 1,530,078 444,870 65 Total deposits 2,025,413 1,551,428 1,236,043 315,384 66 Individuals, partnerships, and corporations 1,886,079 1,443,113 1,151,673 291,440 67 U.S. government 4,714 3,970 3,295 675 68 States and political subdivisions in the United States 76,882 56,264 45,157 11,106 69 Commercial banks in the United States 27,284 24,269 19,304 4,965 70 Other depository institutions in the United States 7,884 5,100 4,128 972 71 Banks in foreign countries 6,164 5,682 3,203 2,479 72 Foreign governments and official institutions 1,048 959 535 424 73 Certified and official checks 15,359 12,072 8,748 3,323 74 Total transaction accounts 659,252 523,297 414,264 109,033 75 Individuals, partnerships, and corporations 577,176 454,325 361,144 93,181 76 U.S. government 3,904 3,235 2,769 465 77 States and political subdivisions in the United States 29,079 22,483 18,001 4,483 78 Commercial banks in the United States 23,458 22,062 17,822 4,240 79 Other depository institutions in the United States 3,756 3,001 2,348 653 80 Banks in foreign countries 5,747 5,400 3,065 2,334 81 Foreign governments and official institutions 773 720 367 353 82 Certified and official checks 15,359 12,072 8,748 3,323 83 Demand deposits (included in total transaction accounts) 418,516 339,645 264,158 75,487 84 Individuals, partnerships, and corporations 351,857 281,729 219,883 61,846 85 U.S. government 3,591 2,936 2,484 452 86 States and political subdivisions in the United States 14,027 11,748 9,462 2,286 87 Commercisd banks in the United States 23,433 22,056 17,816 4,240 88 Other depository institutions in the United States 3,735 2,986 2,333 653 89 Banks in foreign countries 5,743 5,399 3,065 2,334 90 Foreign governments and official institutions 771 719 366 353 91 Certified and official checks 15,359 12,072 8,748 3,323 92 Total nontransaction accounts 1,366,161 1,028,131 821,779 206,351 93 Individuals, partnerships, and corporations 1,308,903 988,788 790,529 198,259 94 U.S. government 810 735 526 209 95 States and political subdivisions in the United States 47,802 33,780 27,157 6,624 96 Commercial banks in the United States 3,826 2,206 1,482 724 97 U.S. branches and agencies of foreign banks 237 115 110 5 98 Other commercial banks in the United States 3,589 2,091 1,372 719 99 Other depository institutions in the United States 4,128 2,099 1,780 319 1 10 0 1 0 Ba F n o k r s e i in g n f o b r r e a i n g c n h c e o s u o n f t r o ie th s er U.S. banks 41 2 7 0 28 1 2 3 13 1 7 3 1441 102 Other banks in foreign countries 396 269 125 144 103 Foreign governments and official institutions 276 239 168 72 104 Federal funds purchased and securities sold under agreements to repurchase10 265,386 227,092 156,178 70,913 105 Federal funds purchased 35,904 27,134 21,886 5,248 106 Securities sold under agreements to repurchase 31,544 20,348 17,577 2,770 107 Demand notes issued to the U.S. Treasury 14,218 12,752 8,943 3,808 108 Other borrowed money 94,688 67,695 46,564 21,131 109 Banks liability on acceptances executed and outstanding 11,340 10,665 7,826 2,839 110 Notes and debentures subordinated to deposits 1,954 1,462 1,145 317 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 31,649 22,003 19,403 2,600 112 Remaining liabilities 124,664 103,855 73,377 30,478 113 Total equity capital7 238,583 184,078 142,019 42,059 MEMO 114 Holdings of commercial paper included in total loans, gross 2,831 581 525 56 115 Total individual retirement (IRA) and Keogh plan accounts 131,337 101,288 81,854 19,434 116 Total brokered deposits 43,145 30,799 25,167 5,632 117 Total brokered retail deposits 32,529 23,147 19,227 3,920 118 Issued in denominations of $100,000 or less 3,946 2,491 2,271 220 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 28,583 20,657 16,956 3,701 120 Money market deposit accounts (savings deposits; MMDAs) 412,112 325,413 260,030 65,382 121 Other savings accounts 258,539 193,975 143,806 50,169 122 Total time deposits of less than $100,000 506,221 373,437 307,615 65,822 123 Time certificates of deposit of $100,000 or more 171,790 121,749 102,014 19,735 124 Open-account time deposits of $100,000 or more 17,499 13,557 8,314 5,243 125 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 237,278 181,581 148,365 33,216 126 Total time and savings deposits 1,606,898 1,211,783 971,886 239,897 Quarterly averages 127 Total loans 1,596,074 1,221,287 980,347 240,940 128 Obligations (other than securities) of states and political subdivisions in the United States ... 22,909 18,668 13,500 5,168 129 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone preauthorized transfer accounts) 238,967 182,287 148,907 33,380 Nontransaction accounts 130 Money market deposit accounts 413,720 326,918 260,122 66,796 131 Other savings deposits 253,092 189,389 140,248 49,141 132 Time certificates of deposits of $100,000 or more 173,553 123,762 103,908 19,854 133 All other time deposits 536,329 398,116 323,011 75,105 134 Number of banks 3,123 1,669 1,370 299 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • August 1993 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, March 31, 1993 Millions of dollars except as noted Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets4 3,119,517 2,289,150 1,772,493 516,658 830,367 2 Cash and balances due from depository institutions 184,247 143,151 111,145 32,005 41,097 3 Currency and coin 31,469 24,250 19,570 4,680 7,219 4 Non-interest-bearing balances due from commercial banks 26,162 14,833 11,427 3,406 11,328 5 Other 126,617 104,068 80,148 23,919 22,549 6 Total securities, loans, and lease financing receivables (net of unearned Income) 2,716,909 1,962,803 1,540,588 422,214 754,106 7 Total securities, book value 763,604 535,158 404,190 130,968 228,445 8 U.S. Treasury securities and U.S. government agency and corporation obligations 622,640 440,475 335,599 104,876 182,165 9 Securities issued by states and political subdivisions in the Umted States 70,634 43,831 31,249 12,582 26,803 10 Other debt securities 58,476 42,903 30,732 12,171 15,573 11 All holdings of private certificates of participation in pools of residential mortgages .. 5,018 4,197 3,564 632 821 12 All other 53,459 38,706 27,167 11,539 14,752 13 Equity securities 11,853 7,949 6,610 1,339 3,904 14 Marketable 5,433 2,494 2,206 288 2,938 15 Investments in mutual funds 3,694 1,769 1,624 146 1,925 16 Other 1,785 743 598 145 1,042 17 LESS: Net unrealized loss 47 18 16 2 28 18 Other equity securities 6,420 5,455 4,405 1,050 965 19 Federal funds sold and securities purchased under agreements to resell8 149,027 113,580 87,713 25,867 35,446 20 Federal funds sold 69,369 41,163 34,797 6,365 28,206 21 Securities purchased under agreements to resell 3,771 2,466 1,574 893 1,304 22 Total loans and lease financing receivables,, gross 1,811,202 1,318,351 1,051,706 266,646 492,851 23 LESS: Unearned income on loans 6,923 4,287 3,021 1,266 2,636 24 Total loans and leases (net of unearned income) 1,804,279 1,314,064 1,048,685 265,379 490,215 Total loans, gross, by category 25 Loans secured by real estate 837,382 584,320 471,949 112,371 253,062 26 Construction and land development 73,459 53,763 43,814 9,949 19,696 27 Farmland 19,950 8,836 7,288 1,548 11,113 28 One- to four-family residential properties 459,566 327,672 265,535 62,138 131,894 29 Revolving, open-end loans, and extended under lines of credit 73,516 55,165 44,817 10,348 18,352 30 All other loans 386,050 272,507 220,718 51,790 113,542 31 Multifamily (five or more) residential properties 27,320 18,625 14,744 3,881 8,694 32 Nonfarm nonresidential properties 257,088 175,423 140,569 34,854 81,665 33 Loans to depository institutions 20,202 15,195 11,602 3,593 5,008 34 Loans to finance agricultural production and other loans to farmers 32,806 16,375 13,797 2,578 16,431 35 Commercial and industrial loans 437,511 340,541 268,770 71,771 96,970 36 Acceptances of other banks 1,169 799 651 148 370 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 358,370 253,671 207,663 46,008 104,699 38 Credit cards and related plans 62,672 42,905 39,239 3,667 19,766 39 Other (includes single payment installment) 143,411 80,864 64,245 16,619 62,547 40 Obligations (other than securities) of states and political subdivisions in the United States 23,510 18,490 13,381 5,109 5,019 41 Taxable 1,392 1,109 740 369 283 42 Tax-exempt 22,118 17,382 12,641 4,740 4,736 43 All other loans 69,219 63,294 43,206 20,087 5,925 44 Lease financing receivables 31,033 25,666 20,686 4,980 5,367 45 Customers' liability on acceptances outstanding 11,216 10,536 7,727 2,810 680 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 51,858 46,514 23,962 22,553 5,344 47 Remaining assets 207,145 172,660 113,032 59,628 34,484 48 Total liabilities and equity capital 3,119,517 2,289,150 1,772,493 516,658 830,367 49 Total liabilities5 2,847,976 2,092,758 1,620,961 471,798 755,218 50 Total deposits 2,328,955 1,666,528 1,324,950 341,577 662,427 51 Individuals, partnerships, and corporations 2,164,877 1,549,246 1,233,781 315,465 615,631 52 U.S. government 5,147 4,141 3,436 706 1,006 53 States and political subdivisions in the United States 96,848 63,208 50,735 12,472 33,640 54 Commercial banks in the United States 28,446 24,939 19,512 5,427 3,507 55 Other depository institutions in the United States 9,144 5,490 4,401 1,088 3,654 56 Certified and official checks 17,238 12,849 9,342 3,507 4,389 57 Mother 7,256 6,655 3,744 2,912 601 58 Total transaction accounts 747,410 557,917 441,251 116,666 189,493 59 Individuals, partnerships, and corporations 655,105 484,944 385,189 99,754 170,161 60 U.S. government 4,222 3,352 2,865 487 871 61 States and political subdivisions in the United States 36,384 25,016 20,108 4,908 11,368 62 Commercial banks in the United States 23,995 22,552 17,900 4,652 1,444 63 Other depository institutions in the United States 3,919 3,073 2,408 665 846 64 Certified and official checks 17,238 12,849 9,342 3,507 4,389 65 All other 6,547 6,132 3,438 2,693 415 66 Demand deposits (included in total transaction accounts) 459,495 356,317 276,827 79,490 103,179 67 Individuals, partnerships, and corporations 388,199 2%, 356 231,235 65,121 91,843 68 U.S. government 3,889 3,051 2,577 473 839 69 States and political subdivisions in the United States 15,770 12,332 9,953 2,379 3,438 70 Commercial banks in the United States 23,965 22,541 17,890 4,652 1,424 71 Other depository institutions in the United States 3,893 3,057 2,392 665 835 72 Certified and official checks 17,238 12,849 9,342 3,507 4,389 73 Mother 6,541 6,130 3,437 2,693 411 74 Total nontransaction accounts 1,581,545 1,108,611 883,700 224,911 472,934 75 Individuals, partnerships, and corporations 1,509,772 1,064,302 848,591 215,711 445,470 76 U.S. government 924 789 571 219 135 77 States and political subdivisions in the United States 60,463 38,191 30,627 7,564 22,272 78 Commercial banks in the United States 4,451 2,388 1,612 775 2,063 79 Other depository institutions in the United States 5,225 2,416 1,993 424 2,808 80 M other 710 524 305 219 186 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22—Continued Members Item TToottaall NNoonn-mmeemmbbeerrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase 268,006 228,253 156,959 71,295 39,752 82 Federal funds purchased 36,884 27,626 22,175 5,451 9,258 83 Securities sold under agreements to repurchase 33,184 21,018 18,069 2,949 12,167 84 Demand notes issued to the U.S. Treasury 14,533 12,864 9,031 3,832 1,669 85 Other borrowed money 95,778 68,062 46,820 21,241 27,716 86 Banks liability on acceptances executed and outstanding 11,355 10,675 7,833 2,842 680 87 Notes and debentures subordinated to deposits 1,993 1,474 1,151 323 520 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 31,649 22,003 19,403 2,600 9,646 89 Remaining liabilities 127,356 104,903 74,216 30,687 22,454 90 Total equity capital7 271,541 196,392 151,532 44,860 75,149 MEMO 91 Assets held in trading accounts 36,415 35,176 18,624 16,551 1,240 92 U.S. Treasury securities 18,253 17,959 8,194 9,765 293 93 U.S. government agency corporation obligations 3,266 3,142 2,690 452 124 94 Securities issued by states and political subdivisions in the United States 1,130 1,077 596 482 52 95 Other bonds, notes, and debentures 1,287 1,253 1,124 129 34 96 Certificates of deposit 1,381 1,271 854 417 110 97 Commercial paper 35 35 35 0 0 98 Bankers acceptances 2,504 2,375 1,572 803 129 99 Other 7,946 7,901 3,425 4,476 45 100 Total individual retirement (IRA) and Keogh plan accounts 148,704 107,582 86,745 20,837 41,121 101 Total brokered deposits 43,701 30,986 25,283 5,703 12,715 102 Total brokered retail deposits 33,055 23,324 19,338 3,986 9,730 103 Issued in denominations of $100,000 or less 4,403 2,643 2,368 275 1,760 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 28,651 20,681 16,971 3,711 7,970 Savings deposits 105 Money market deposit accounts (savings deposits; MMDAs) 450,695 341,158 272,229 68,930 109,537 106 Other savings deposits 297,040 209,069 155,148 53,921 87,971 107 Total time deposits of less than $100,000 617,547 412,929 338,112 74,817 204,618 108 Time certificates of deposit of $100,000 or more 197,815 131,596 109,661 21,934 66,219 109 Open-account time deposits of $100,000 or more 18,448 13,858 8,549 5,309 4,589 110 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 283,251 199,126 162,394 36,731 84,125 111 Total time and savings deposits 1,869,460 1,310,211 1,048,124 262,087 559,248 Quarterly averages 112 Total loans 1,771,422 1,286,468 1,029,546 256,922 484,955 113 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone and preauthorized transfer accounts) 285,471 200,022 163,065 36,957 85,449 Nontransaction accounts 114 Money market deposit accounts 452,009 342,491 272,207 70,284 109,518 115 Other savings deposits 290,649 204,129 151,327 52,801 86,520 116 Time certificates of deposit jf $100,000 or more 199,013 133,424 111,414 22,009 65,590 117 All other time deposits 649,139 438,175 353,945 84,230 210,963 118 Number of banks 11,283 4,473 3,523 950 6,810 1. Effective Mar. 31,1984, the report of condition was substantially revised for calendar year, were $100 million or more. (These banks file the FFIEC 032 or commercial banks. Some of the changes are as follows: (1) Previously, banks with FFIEC 033 Call Report.) "Under 100" refers to banks whose assets, on June 30 international banking facilities (IBFs) that had no other foreign offices were of the preceding calendar year, were less than $100 million. (These banks filed the considered domestic reporters. Beginning with the March 31, 1984, Call Report FFIEC 034 Call Report.) these banks are considered foreign and domestic reporters and must file the 4. Because the domestic portion of allowances for loan and lease losses and foreign and domestic report of condition; (2) banks with assets of more than $1 allocated transfer risk reserve are not reported for banks with foreign offices, the billion report additional items; (3) the domestic offices of banks with foreign components of total assets (domestic) do not sum to the actual total (domestic). offices report far less detail; and (4) banks with assets of less than $25 million have 5. Because the foreign portion of demand notes issued to the U.S. Treasury is been excused from reporting certain detail items. not reported for banks with foreign offices, the components of total liabilities The "n.a." for some of the items is used to indicate the lesser detail available (foreign) will not sum to the actual total (foreign). from banks without foreign offices, the inapplicability of certain items to banks 6. The definition of "all other" varies by report form and therefore by column that have only domestic offices or the absence of detail on a fully consolidated in this table. basis for banks with foreign offices. 7. Equity capital is not allocated between the domestic and foreign offices of All transactions between domestic aind foreign offices of a bank are reported in banks with foreign offices. "net due from" and "net due to." All other lines represent transactions with 8. Only the domestic portion of federal funds sold and securities purchased parties other than the domestic and foreign offices of each bank. Because these under agreements to resell are reported here; therefore, the components do not intraoffice transactions are nullified by consolidation, total assets and total sum to totals. liabilities for the entire bank may not equal the sum of assets and liabilities 9. "Acceptances of other banks" is not reported by domestic banks having less respectively of the domestic and foreign offices. than $300 million in total assets; therefore the components do not sum to totals. 2. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. 10. Only the domestic portion of federal fiinds purchased and securities sold territories and possessions; subsidiaries in foreign countries; all offices of Edge are reported here; therefore the components do not sum to totals. Act and Agreement corporations wherever located and IBFs. 11. Components are reported only for banks with total assets of $1 billion or 3. The "over 100" refers to banks whose assets, on June 30 of the preceding more; therefore the components do not sum to totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • August 1993 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 3-7, 19931 A. Commercial and Industrial Loans Weighted Loan rate (percent) Loans Loans Amount of Average average secured made Partici- Characteristic ($ l 1 o , a 0 n 0 s 0 ) ($1 si ,0 ze 0 0) maturity2 Weighted Standard coll b a y te ral co u m nd m e i r t - p l a o t a i n o s n average ment (percent) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 10,247,454 6,973 3.55 .20 5.5 57.3 8.9 2 One month and under (excluding overnight) 6,349,205 649 16 4.16 27.4 73.0 5.0 3 Fixed rate 4,002,333 1,341 14 3.81 19.2 70.6 1.4 4 Floating rate 2,346,872 345 20 4.75 41.3 77.1 11.2 5 Over one month and under a year . 7,876,450 136 142 5.56 57.1 77.2 13.0 6 Fixed rate 2,941,957 137 97 5.11 55.3 72.7 11.6 7 Floating rate 4,934,493 136 169 5.83 58.2 80.0 13.9 8 Demand7 16,738,804 331 5.45 64.6 65.4 5.0 9 Fixed rate 1.964.129 504 4.13 17.7 81.1 1.9 10 Floating rate 14,774,675 317 5.63 70.8 63.4 5.5 11 Total short term 41,211,913 345 50 4.80 42.7 66.8 12 Fixed rate (thousands of dollars) .. 19,155,873 643 21 3.91 17.2 64.9 7.0 13 1-99 347,544 14 176 8.27 79.3 27.2 1.2 14 100-499 442,248 199 147 6.61 68.3 52.9 7.2 15 500-999 330,865 689 62 4.76 42.5 81.3 5.9 16 1,000-4,999 3,508,517 2,215 34 4.27 23.8 76.1 5.2 17 5,000-9,999 3,469,582 6,7% 14 3.77 14.4 65.9 8.4 18 10,000 and over 11,057,116 19,123 9 3.57 11.3 62.2 7.4 19 Floating rate (thousands of dollars) 22,056,041 246 121 5.58 64.8 68.5 8.0 20 1-99 1,661,515 24 170 7.48 84.6 84.3 2.7 21 100-499 3,173,793 200 181 6.93 78.0 88.8 5.5 22 500-999 1.625.130 655 186 6.55 70.2 89.6 7.8 23 1,000-4,999 4,640,477 2,050 149 6.04 59.2 84.7 8.4 24 5,000-9,999 2,154,399 6,700 70 5.30 44.6 81.8 7.1 25 10,000 and over 8,800,726 24,757 63 4.37 63.3 42.6 9.9 Months 26 Total long term 3,705,469 159 64.7 76.4 7.3 27 Fixed rate (thousands of dollars) .. 1,212,616 109 6.02 51.2 59.4 2.3 28 1-99 164,739 16 8.80 93.8 14.3 .0 29 100-499 131,221 214 7.90 87.5 26.9 1.5 30 500-999 94,398 638 8.43 90.5 25.4 2.0 31 1,000 and over 822,258 4,345 4.88 32.4 77.5 2.9 32 Floating rate (thousands of dollars) 2.492,853 205 6.47 71.3 84.7 9.8 33 1-99 215,718 25 7.77 90.1 62.2 4.5 34 100-499 527,409 218 7.06 84.8 71.1 4.7 35 500-999 330,607 657 6.72 75.0 81.2 7.0 36 1,000 and over 1,419,119 2,970 5.99 62.6 93.9 13.2 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 10,104,214 8,337 3.52 3.50 4.7 56.7 9.0 38 One month and under (excluding overnight) 5,693,366 3,531 3.83 3.80 21.7 71.4 4.3 39 Over one month and under a year 4.142,750 508 4.23 4.21 41.5 77.1 18.5 40 Demand" 8,161,210 2,998 3.88 3.84 54.9 43.1 3.5 41 Total short term 28,101,541 2,052 3.79 3.77 28.2 58.8 7.9 42 Fixed rate 18,063,114 2,732 3.69 3.67 13.9 64.9 7.0 43 Floating rate 10,038,427 1,417 3.97 3.93 53.8 47.6 9.5 Months 44 Total long term 1,308,599 662 4.53 4.50 77.6 5.7 45 Fixed rate .. 735,393 668 4.57 4.55 25.4 69.7 2.1 46 Floating rate 573,207 654 4.47 4.44 50.8 87.8 10.4 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued Characteristic A ( m $ l 1 o o , u a 0 n n 0 s t 0 ) o f A ($ v 1 s e i ,0 r z a e 0 g 0 e ) W m a a v e t e i u g r r h a i g t t e y e d 2 W a L v e e i o g r a a h n g t e e r d a te (p S er t c a e n n d t a ) r d c s o L e l c l o b a u a y t r n e e s r d a l c L o u m m m n o a e d a m d n n e e t r i s t - ( P p p l e a a o r r t a c t i i n o e c s n n i - t) Days effective3 (percent) (percent) LARGE BANKS 1 Overnight6 7,908,231 7,694 3.59 48.4 11.0 2 One month and under (excluding overnight) 4,649,178 2,970 14 3.93 21.4 82.6 1.0 3 Fixed rate 3,276,260 4,756 14 3.74 18.7 76.1 1.3 4 Floating rate 1,372,918 1,566 16 4.39 27.7 97.9 .3 5 Over one month and under a year. 4,349,395 928 110 4.91 54.2 87.8 14.7 6 Fixed rate 1,962,634 2,234 67 4.54 53.6 85.5 15.7 7 Floating rate 2,386,761 627 145 5.21 54.6 89.7 13.9 8 Demand7 11,989,371 675 5.08 62.7 57.1 4.3 9 Fixed rate 1,134,438 1,270 4.09 15.4 80.8 1.7 10 Floating rate 10,854,933 644 5.18 67.7 54.6 4.5 11 Total short term 28,896,175 1,154 33 4.46 39.6 63.4 7.2 12 Fixed rate (thousands of dollars) .. 14,281,562 4,094 14 3.79 16.8 62.4 8.7 13 1-99 20,636 26 106 7.06 61.0 52.0 .0 14 100-499 127,815 259 38 5.40 46.5 77.3 5.9 15 500-999 241,061 701 54 4.77 47.6 84.9 4.3 16 1,000-4,999 2,442,412 2,374 28 4.24 24.8 78.9 5.8 17 5,000-9,999 2,513,921 6,604 14 3.78 17.8 62.6 11.6 18 10,000 and over 8,935,716 19,711 10 3.62 13.0 57.1 8.9 19 Floating rate (thousands of dollars) 14,614,613 678 5.11 61.8 64.4 5.7 20 1-99 406,040 32 157 7.25 82.5 91.2 1.9 21 100-499 1,208,730 208 149 6.81 75.1 91.0 3.3 22 500-999 795,595 657 144 6.30 59.6 89.4 6.9 23 1,000-4,999 2,581,846 2,121 130 5.67 47.4 84.0 7.1 24 5,000-9,999 1,727,570 6,786 82 5.14 46.1 82.1 6.1 25 10,000 and over 7,894,832 24,638 72 4.44 67.1 46.1 5.5 Months 26 Total long term 1,798,869 545 5.97 60.3 10.6 27 Fixed rate (thousands of dollars) .. 325,718 777 5.30 56.6 78.1 6.2 28 1-99 6,146 27 8.29 89.6 36.9 1.0 29 100-499 21,997 240 6.76 75.5 57.0 7.1 30 500-999 20,858 694 7.15 81.4 62.1 9.1 31 1,000 and over 276,718 4,175 4.97 52.6 81.8 6.1 32 Floating rate (thousands of dollars) 1,473,151 511 6.11 61.1 91.3 11.5 33 1-99 37,285 29 6.97 87.9 85.5 4.7 34 100-499 234,131 231 6.88 77.0 85.1 6.2 35 500-999 189,753 669 6.54 65.6 88.1 9.0 36 1,000 and over 1,011,982 3,303 5.83 55.6 93.6 13.5 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 7,766,005 8,820 3.54 3.52 6.1 11.2 38 One month and under (excluding overnight) 4,451,478 6,201 3.81 3.78 19.8 82.4 1.0 39 Over one month and under a year 2,958,534 3,106 4.12 4.10 46.4 88.9 17.2 40 Demand7 7,100,246 4,928 3.86 3.82 59.8 37.9 3.6 41 Total short term 22,276,263 5,581 22 3.77 3.75 31.3 56.9 42 Fixed rate 13,797,459 5,586 3.69 3.68 15.3 61.3 8.5 43 Floating rate 8,478,803 5,572 3.90 3.86 57.4 49.7 6.0 Months 44 Total long term 661,259 2,520 4.19 43.7 92.0 9.9 45 Fixed rate .. 215,686 3,127 4.35 4.30 50.1 86.0 3.5 46 Floating rate 445,572 2,304 4.12 4.09 40.6 94.8 12.9 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • August 1993 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 3-7, 1993'—Continued Commercial and industrial loans—Continued Weighted Loan rate (percent) Loans Loans Characteristic A ( m $ l 1 o o , a u 0 n n 0 s t 0 ) o f A ($ v 1 s e i ,0 z ra e 0 g 0 e ) m av at e u r r a i g ty e 2 W av e e ig ra h g te e d Standard c s o e l c l b a u y t r e e r d a l co u m m m n a e d m d n e e t r i t - ( P p p l a e a o r r t a t c i i n o e c s n n i - t) Days effective3 (percent) (percent) OTHER BANKS 1 Overnight6 2,339,223 5,296 3.45 .36 87.6 2 One month and under (excluding overnight) 1,700,027 207 22 4.78 43.8 46.8 15.9 3 Fixed rate 726,073 316 17 4.13 21.3 45.5 1.5 4 Floating rate 973,954 164 25 5.26 60.5 47.8 26.6 5 Over one month and under a year . 3,527,055 66 181 6.37 60.8 64.2 10.9 6 Fixed rate 979,323 48 157 6.27 58.6 46.9 3.3 7 Floating rate 2,547,732 78 190 6.40 61.6 70.8 13.8 8 Demand7 4,749,433 145 6.39 69.1 86.6 7.0 9 Fixed rate 829,691 276 4.19 21.0 81.3 2.2 10 Floating rate 3,919,742 132 6.85 79.3 87.7 8.0 11 Total short term 12,315,738 130 5.60 50.1 74.9 8.4 12 Fixed rate (thousands of dollars) .. 4,874,310 185 42 4.24 18.5 72.1 2.2 13 1-99 326,908 14 178 8.35 80.5 25.7 1.2 14 100-499 314,433 182 186 7.10 77.2 43.0 7.7 15 500-999 89,804 660 83 4.74 28.7 71.9 10.2 16 1,000-4,999 1,066,105 1,921 48 4.32 21.5 69.5 4.0 17 5,000-9,999 955,661 7,360 15 3.74 5.6 74.6 .0 18 10,000 and over 2,121,400 16,990 5 3.35 4.2 83.7 1.2 19 Floating rate (thousands of dollars) 7,441,427 109 145 6.49 70.8 76.7 12.4 20 1-99 1,255,475 23 171 7.55 85.3 82.1 3.0 21 100-499 1,965,063 195 190 7.00 79.9 87.5 6.8 22 500-999 829,535 654 209 6.78 80.3 89.7 8.6 2 2 3 4 5 1 , , 0 0 0 0 0 0 - - 9 4 , , 9 9 9 9 9 9 2,0 4 5 2 8 6 , , 6 8 3 2 2 9 6 1 , , 3 9 7 6 4 8 1 3 7 5 7 6 5 . . 5 9 2 6 7 3 4 8 . . 0 5 8 8 0 5 . . 4 7 1101..00 25 10,000 and over 905,895 25,847 44 3.84 30.3 11.9 47.5 Months 26 Total long term 1.906,600 95 6.65 .21 68.9 64.6 4.3 27 Fixed rate (thousands of dollars) .. 886,898 83 6.28 .41 49.3 52.5 .9 28 1-99 158,593 16 8.82 .32 94.0 13.5 .0 29 100-499 109,224 209 8.13 .25 89.9 20.9 .4 30 500-999 73,541 624 8.80 1.04 93.1 15.0 .0 31 1,000 and over 545,540 4,437 4.84 .57 22.2 75.2 1.3 32 Floating rate (thousands of dollars) 1,019,702 110 6.98 .15 86.0 75.1 7.3 33 1-99 178,433 24 7.94 .13 90.5 57.3 4.5 34 100-499 293,278 209 7.21 .18 91.0 59.9 3.5 35 500-999 140,854 643 6.97 .32 87.8 71.8 4.4 36 1,000 and over 407,137 2,377 6.39 .16 79.8 94.9 12.3 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 2,338,209 7,056 3.45 3.44 87.6 38 One month and under (excluding overnight) 1,241,888 1,388 21 3.90 3.86 28.7 31.9 16.2 39 Over one month and under a year 1,1184,217 165 121 4.52 4.48 29.4 47.6 21.8 40 Demand7 1,060,964 828 4.00 3.99 22.3 77.8 2.6 41 Total short term 5,825,278 600 36 3.86 3.84 16.2 65.8 9.1 42 Fixed rate 4,265,654 1,030 3.68 3.66 9.5 76.5 1.9 43 Floating rate 1,559,624 280 4.37 4.33 34.3 36.5 28.7 Months 44 Total long term 647,341 378 46 4.85 29.2 63.0 1.5 45 Fixed rate .. 519,706 504 4.66 4.65 15.1 63.0 1.5 46 Floating rate 127,635 187 5.70 5.68 86.4 63.2 1.5 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A80 Special Tables • August 1993 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 19931 Millions of dollars All states New York California Illinois IItteemm inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 1 Total assets4 683,115 284,545 515,865 225,358 75,686 33,708 54,442 17,943 2 Claims on nonrelated parties 593,631 175,117 441,294 144,672 69,032 13,232 54,113 12,761 3 Cash and balances due from depository institutions 133,995 107,180 114,633 89,498 7,193 6,549 10,785 10,358 4 Cash items in process of collection and unposted debits 3,171 0 3,043 0 16 0 82 0 5 Currency and coin (U.S. and foreign) 25 n.a. 18 n.a. 2 n.a. 1 n.a. 6 Balances with depository institutions in United States .. 81,933 60,664 70,101 50,028 5,036 4,480 6,053 5,789 7 U.S. branches and agencies of other foreign banks (including IBFs) 77,180 58,717 66,017 48,144 4,741 4,460 5,851 5,757 8 Other depository institutions in United States (including IBFs) 4,753 1,948 4,085 1,884 2% 20 202 32 9 Balances with banks in foreign countries and with foreign central banks 47,997 46,515 40,790 39,470 2,072 2,069 4,598 4,568 10 Foreign branches of U.S. banks 1,454 1,424 1,216 1,186 151 151 65 65 11 Other banks in foreign countries and foreign central banks 46,543 45,092 39,575 38,284 1,921 1,918 4,533 4,504 12 Balances with Federal Reserve Banks 870 n.a. 680 n.a. 66 n.a. 50 n.a. 13 Total securities and loans 374,719 57,884 255,472 46,232 55,625 6,215 37,444 1,989 14 Total securities, book value 83,406 13,906 76,666 12,988 3,598 553 2,734 338 15 U.S. Treasury 31,349 n.a. 30,860 n.a. 127 n.a. 307 n.a. 16 Obligations of U.S. government agencies and corporations 16,232 n.a. 15,505 n.a. 557 n.a. 9977 n.a. 17 Other bonds, notes, debentures, and cor]x>rate stock (including state and local securities) 35,825 13,906 30,301 12,988 2,913 553 2,331 338 18 Federal funds sold and securities purchased under agreements to resell 35,213 3,582 33,352 3,267 540 2 791 150 19 U.S. branches and agencies of other foreign banks 11,683 2,171 10,426 2,119 402 2 616 50 20 Commercial banks in United States 3,858 103 3,636 103 67 0 32 0 21 Other 19,672 1,308 19,289 1,045 71 0 143 100 22 Total loans, gross 291,440 43,987 178,890 33,251 52,046 5,663 34,726 1,652 23 Less: Unearned income on loans 127 9 84 8 19 1 16 0 24 Equals: Loans, net 291,313 43,978 178,806 33,243 52,027 5,662 34,710 1,651 Total loans, gross, by category 25 Real estate loans 49,415 516 25,133 248 15,883 222288 44,,889911 40 26 Loans to depository institutions 39,211 26,286 29,363 19,504 4,731 3,723 2,471 1,154 27 Commercial banks in United States (including IBFs) 18,106 9,660 13,451 7,112 2,797 1,937 1,558 610 28 U.S. branches and agencies of other foreign banks ... 15,700 9,349 11,799 6,844 2,682 1,894 1,098 610 29 Other commercial banks in United States 2,406 311 1,652 268 115 43 460 0 30 Other depository institutions in United States (including IBFs) 304 5 7 5 0 0 298 0 31 Banks in foreign countries 20,801 16,621 15,906 12,387 1,934 1,786 616 544 32 Foreign branches of U.S. banks 542 316 367 281 175 35 0 0 33 Other banks in foreign countries 20,259 16,306 15,539 12,106 1,760 1,751 616 544 34 Other financial institutions 23,720 968 20,964 840 917 27 1,403 20 35 Commercial and industrial loans 163,619 12,025 90,671 9,113 29,930 1,543 25,194 387 36 U.S. addressees (domicile) 143,679 424 76,355 324 27,604 78 24,472 7 37 Non-U.S. addressees (domicile) 19,940 11,601 14,316 8,789 2,327 1,465 722 380 38 Acceptances of other banks 1,155 67 839 57 118 0 5 0 39 U.S. banks 621 0 504 0 52 0 0 0 40 Foreign banks 534 67 335 57 65 0 5 0 41 Loans to foreign governments and official institutions (including foreign central banks) 5,468 3,931 3,991 33,,336699 114422 110066 334433 5500 42 Loans for purchasing or carrying securities I secured and unsecured) 5,141 65 4,880 29 187 3355 62 0 43 All other loans 3,711 129 3,049 91 139 1 357 0 44 All other assets 49,703 6,471 37,837 5,675 5,674 466 5,093 264 45 Customers' liability on acceptances outstanding 16,862 n.a. 11,575 n.a. 3,822 n.a. 859 n.a. 46 U.S. addressees (domicile) 12,074 n.a. 7,466 n.a. 3,484 n.a. 753 n.a. 47 Non-U.S. addressees (domicile) 4,788 n.a. 4,109 n.a. 338 n.a. 106 n.a. 48 Other assets including other claims on nonrelated 32,842 6,471 26,262 5,675 1,852 466 4,234 264 49 Net due from related depository institutions-1 89,484 109,428 74,571 80,686 6,655 20,477 330 5,182 50 Net due from head office and other related depository institutions3 89,484 n.a. 74,571 n.a. 6,655 n.a. 330 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions n.a. 109,428 n.a. 8800,,668866 n.a. 2200,,447777 n.a. 55,,118822 52 Total liabilities4 683,115 284,545 515,865 225,358 75,686 33,708 54,442 17,943 53 Liabilities to nonrelated parties 568,840 254,243 460,328 203,111 59,946 33,339 30,734 11,823 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30—Continued Millions of dollars All states New York California Illinois Item ex T c IB l o u F t d a s i l n g I o B n F ly s ex T c IB l o u t F d a s i l n g I o B n F ly s ex T c IB l o u F t d a s i l n g I o B n F ly s ex T c IB l o u F t d a s i l n g 54 Total deposits and credit balances 153,994 188,865 134,083 172,311 4,383 6,621 6,243 5 5 6 5 Ind U iv .S id . u a a d l d s, r e p s a s r e t e n s e r ( s d h o i m ps i , c i a le n ) d corporations 1 9 0 4 9 , , 3 2 1 0 0 1 11,5 1 6 7 1 6 9 8 1 3 , , 8 0 1 3 6 6 6,8 1 3 6 5 8 4 2 , , 1 3 0 3 5 0 49 0 1 4 5 , , 4 49 2 9 6 57 Non-U.S. addressees (domicile) 14,891 11,385 8,780 6,668 1,775 491 1,073 58 Commercial banks in United States (including IBFs). 27,144 57,655 25,554 53,309 31 2,268 667 59 U.S. branches and agencies of other foreign banks 14,301 50,590 13,691 46,995 26 1,786 321 60 Other commercial banks in United States 12,843 7,065 11,863 6,314 4 482 346 6 6 6 3 2 1 Ba O F n o t k h r s e e i i r g n n b f a o b n r r k e a s i n g c i n n h c e f o s o u r o e n f i t g r U n ie . s c S o . u b n a t n ri k e s s 4 7 3 , , , 0 8 8 8 8 0 7 7 0 9 93 9 5 , , , 9 8 9 7 9 2 4 8 5 4 7 3 , , , 0 5 6 5 9 4 0 1 1 9 8 4 3 9 , , , 6 9 21 0 8 8 7 9 3 3 0 6 6 2 2 , , 6 8 1 8 8 9 9 4 5 6 2 3 3 8 5 64 Foreign governments and official institutions 65 All ( o in th c e lu r d d in e g p o f s o i r t e s ig a n n d c e c n re tr d a i l t b b a a n la k n s) c es 2 6 , , 2 4 2 8 4 2 19,3 3 6 8 1 9 6 1 , , 2 8 0 6 1 3 17,9 3 2 3 9 1 18 6 2 97 0 8 2 4 66 Certified and official checks 1,057 1,007 22 67 Transaction accounts and credit balances (excluding IBFs) 8,776 7,240 294 372 68 Individuals, partnerships, and corporations 6,253 4,976 229 357 69 U.S. addressees (domicile) 4,523 3,857 182 352 7 7 0 1 Co N m o m n e -U rc . i S a . l a b d a d n r k e s s s in e e U s n ( i d t o ed m i S c t i a le t ) e s (including IBFs). 1,7 1 3 4 0 3 1,1 1 1 3 9 5 4 4 0 7 0 0 5 72 U.S. branches and agencies of other foreign banks 45 43 0 73 Other commercial banks in United States 98 92 4 1 7 7 4 5 Ba F n o k r s e i i g n n f o b r r e a i n g c n h c e o s u o n f t r U ie . s S . banks 89 4 6 76 4 1 2 0 7 0 1 76 Other banks in foreign countries 892 757 27 77 Foreign governments and official institutions (including foreign central banks) 314 271 5 2 78 All other deposits and credit balances 113 90 6 3 79 Certified and official checks 1,057 1,007 22 80 Demand deposits (included in transaction accounts and credit balances) 8,183 6,954 236 358 81 Individuals, partnerships, and corporations 5,817 4,817 183 344 82 U.S. addressees (domicile) 4,353 3,776 150 339 8 8 3 4 Co N m o m n e -U rc . i S a . l a b d a d n r k e s s s in e e U s n ( i d t o ed m i S c t il a e t ) e s (including IBF)s. 1,4 1 6 0 3 7 1,0 1 4 0 1 3 3 0 3 1 0 0 5 8 8 8 8 8 8 5 7 9 6 Ba F O O U n o t k t . h h S r s e e e . i i r r g n b n b c r f a o a o b n n m r r c k e a m h s i n g e e c i n s n r h c c a e i f o n a s o l d u r o e n b f a i t a g g r U n n i e e k . n s c S s c o . i i u e n b s n a t U o n ri f n k e s i o s t e th d e r S t f a o t r e e s i gn banks 8 8 2 8 2 3 4 2 5 9 3 7 7 2 1 0 8 4 1 0 6 3 2 2 0 0 4 4 0 0 1 1 90 Foreign governments and official institutions 91 All ( o in th c e lu r d d in e g p o f s o i r t e s ig a n n d c e c n re tr d a i l t b b a a n la k n s c ) es 28 8 5 4 24 6 8 9 5 1 2 3 92 Certified and official checks 1,057 1,007 22 93 Non-transaction accounts (including MMDAs, excluding IBFs) 145,218 126,843 4,089 5,871 94 Individuals, partnerships, and corporations 102,948 86,840 3,876 5,142 1 1 1 9 9 9 9 9 0 0 0 5 7 8 6 9 1 0 2 C B o a U U N O F O n m o k . . t o t m S h S r h s n e e . . e e - i i r r g U n b r a c n c b d r . i f a o a S d a o b n m n l r . r r c e k e a b a m h s s i n d a g s e e n c d e i n s r n h e k r c c e a s e s i f n o s a s o ( s i l d u d r n o e e n o b e f a i t U m a s g g r U n i n n e i e ( k c . n i d s S c t s i c o e l o . e i d m i e u ) n b s n i S a c U t o n t i r a l f i n k e e t s i ) e o s t s e t h d ( e i r n S c t f a l o u t r e d e s i i n g g n I b B an F k s s ) . 8 2 1 1 1 6 4 9 7 2 2 4 3 , , , , , , , , 0 9 7 0 9 7 2 1 8 8 9 0 4 5 0 6 3 7 1 1 4 6 8 1 7 2 1 1 6 4 9 7 5 2 3 1 , , , , , , , , 0 8 1 4 6 8 6 7 4 7 8 1 3 6 4 7 7 9 0 9 4 1 8 1 2 1 , , 1 7 4 2 2 2 0 8 0 9 9 6 6 8 4 1 , , 0 0 6 3 3 7 6 3 6 2 6 4 2 4 2 5 8 1 7 6 7 1 1 0 0 3 4 F A o ll r ( e o i i n t g h c n e l u r g d o d in v e g p e r o f n s o m i r t e s e i n g a t n n s d c a e c n n r d e t r d o a i f l t f i b b c a a i n a la l k n i s n c ) s e t s i tutions 6 1 , , 3 9 6 1 9 0 6 1 , ,5 1 9 1 2 2 17 0 7 0 1 105 IBF deposit liabilities 188,865 172,311 6,621 1 10 0 7 6 Ind U iv .S id . u a a d l d s, r e p s a s r e t e n s e r ( s d h o i m ps i , c i a le n ) d corporations 11,5 1 6 7 1 6 6,8 1 3 6 5 8 491 0 108 Non-U.S. addressees (domicile) 11,385 6,668 491 109 Commercial banks in United States (including IBFs). 57,655 53,309 2,268 110 U.S. branches and agencies of other foreign banks 50,590 46,995 1,786 111 Other commercial bilks in United States 7,065 6,314 482 112 Banks in foreign countries 99,898 93,907 2,884 113 Foreign branches of U.S. banks 5,925 4,689 195 114 Other banks in foreign countries 93,974 89,218 2,689 115 Foreign governments and official institutions 116 All ( o in th c e lu r d d in e g p o f s o i r t e s ig a n n d c e c n re tr d a i l t b b a a n la k n s) c es 19,3 3 6 8 1 9 17,9 3 2 3 9 1 97 0 8 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Special Tables • August 1993 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 19931—Continued Millions of dollars All states New York California Illinois IItteemm inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 117 Federal funds purchased and securities s;old under agreements to repurchase 68,295 9,702 53,471 5,586 9,047 2,479 5,357 1,557 118 U.S. branches and agencies of other foreign banks 13,587 2,648 8,106 1,066 3,726 1,218 1,649 346 119 Other commercial banks in United States 14,950 152 10,274 102 2,692 30 1,864 20 170 Other 39,757 6,902 35,091 4,417 2,628 1,231 1,844 1,191 121 Other borrowed money 110,820 50,231 64,591 20,476 34,642 23,763 9,728 5,507 122 Owed to nonrelated commercial banks in United States (including IBFs) 40,456 19,836 17,311 4,605 18,392 13,340 3,503 1,672 123 Owed to U.S. offices of nonrelated U.S. banks 13,147 2,620 7,876 1,044 3,368 1,382 1,551 143 124 Owed to U.S. branches and agencies of nonrelated foreign banks 27,308 17,216 9,435 3,561 15,024 11,958 1,951 1,529 125 Owed to nonrelated banks in foreign countries 28,500 27,140 14,271 13,102 10,523 10,360 3,413 3,411 126 Owed to foreign branches of nonrelated U.S. banks ... 1,849 1,750 1,024 938 639 629 177 175 127 Owed to foreign offices of nonrelated foreign banks 26,651 25,390 13,246 12,163 9,884 9,731 3,236 3,236 128 Owed to others 41,864 3,256 33,010 2,769 5,727 63 2,812 423 129 All other liabilities 46,866 5,445 35,871 4,739 5,254 477 4,841 196 130 Branch or agency liability on acceptances executed and outstanding 18,524 n.a. 13,171 n.a. 3,828 n.a. 859 n.a. 131 Other liabilities to nonrelated parties 28,342 5,445 22,701 4,739 1,426 477 3,982 196 132 Net due to related depository institutions;5 114,275 30,303 55,537 22,247 15,741 370 23,709 6,120 133 Net due to head office and other related depository institutions 114,275 n.a. 55,537 n.a. 15,741 n.a. 23,709 n.a. 134 Net due to establishing entity, head ofiice, and other related depository institutions n.a. 30,303 n.a. 22,247 n.a. 370 n.a. 6,120 MEMO 135 Non-interest bearing balances with commercial banks in United States 1,619 0 1,256 0 169 0 114 0 136 Holding of commercial paper included in total loans 990 853 94 35 137 Holding of own acceptances included in commercial and industrial loans 3,322 2,648 356 109 138 Commercial and industrial loans with remaining maturity of one year or less 98,578 53,554 18,014 15,726 139 Predetermined interest rates 61,698 n. a. 31,243 n.a. 11,775 n.a. 11,870 n.a. 140 Floating interest rates 36,880 22,311 6,238 3,856 141 Commercial and industrial loans with remaining maturity of more than one year 65,041 37,117 11,917 9,469 142 Predetermined interest rates 22,938 12,788 4,541 4,104 143 Floating interest rates 42,103 24,329 7,376 5,364 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A83 4.30—Continued Millions of dollars All states New York California Illinois IItteemm Total Total Total Total exc IB lu F d s i ng I o B n F ly s exc IB lu F d s i ng I o B n F ly s exc IB lu F d s i ng I o B n F ly s exc IB lu F d s i ng I o B n F ly s 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaa]]]] aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 151,231 t 133,553 t 4,833 t 6,019 t 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 114,963 101,642 2,745 4,132 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 23,996 n.\a. 21,289 n.a. 884 n.a. 1,520 n.a. 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee \ \ 1 wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 12,272 10,623 1,203 367 All states2 New York California Illinois inc T IB l o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s in T c IB l o u F t d a s i l n g I o B n F ly s inc T IB l o u F t d a s i l n g I o B n F ly s 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 82,794 13,781 75,880 12,842 3,662 576 2,848 336 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 71,176 n.a. 36,244 n.a. 26,816 n.a. 6,866 n.a. 111155550000 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 575 0 268 0 134 0 51 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data re reported for that item, either because the item is not an eligible "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign IBF asset or liability or because that level of detail is not reported for IBFs. From Banks." Details may not add to totals because of rounding. This form was first December 1981 through September 1985, IBF data were included in all applicable used for reporting data as of June 30, 1980, and was revised as of December 31, items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FK 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G. 11, last issued on footnote 5). On the former monthly branch and agency report, available through July 10,1980. Data in this table and in the G.ll tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefore, total asset and total liability figures in this table are not items. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Index to Statistical Tables References are to pages A3-A83 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits Agricultural loans, commercial banks, 22,23 Banks, by classes, 20-24 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and Banks, by classes, 20-23 corporations, 24 Domestic finance companies, 36 Turnover, 17 Federal Reserve Banks, 11 Depository institutions Financial institutions, 28 Reserve requirements, 9 Foreign banks, U.S. branches and agencies, 24, 80-83 Reserves and related items, 4, 5,6, 13, 71,73, 75 Automobiles Deposits (See also specific types) Consumer installment credit, 39 Banks, by classes, 4, 20-23, 24 Production, 47, 48 Federal Reserve Banks, 5,11 Interest rates, 16 BANKERS acceptances, 10, 23, 26 Turnover, 17 Bankers balances, 20-23, 80-83. (See also Foreigners) Discount rates at Reserve Banks and at foreign central banks and Bonds (See also U.S. government securities) foreign countries (See Interest rates) New issues, 35 Discounts and advances by Reserve Banks (See Loans) Rates, 26 Dividends, corporate, 35 Branch banks, 24, 55 Business activity, nonfinancial, 45 EMPLOYMENT, 45 Business expenditures on new plant and equipment, 35 Eurodollars, 26 Business loans (See Commercial and industrial loans) FARM mortgage loans, 38 CAPACITY utilization, 46 Federal agency obligations, 5, 10, 11, 12, 31, 32 Capital accounts Federal credit agencies, 33 Banks, by classes, 20, 71, 73, 75 Federal finance Federal Reserve Banks, 11 Debt subject to statutory limitation, and types and ownership Central banks, discount rates, 67 of gross debt, 30 Certificates of deposit, 26 Receipts and outlays, 28, 29 Commercial and industrial loans Treasury financing of surplus, or deficit, 28 Commercial banks, 18, 22, 70, 72, 74, 76-79 Treasury operating balance, 28 Weekly reporting banks, 22-24 Federal Financing Bank, 28, 33 Commercial banks Federal funds, 7, 19, 22, 23, 24, 26, 28 Assets and liabilities, 20-23, 76-79 Federal Home Loan Banks, 33 Commercial and industrial loans, 18, 20,21, 22, 23, 24 Federal Home Loan Mortgage Corporation, 33, 37, 38 Consumer loans held, by type and terms, 39, 70, 72, 74 Federal Housing Administration, 33, 37, 38 Deposit interest rates of insured, 16 Federal Land Banks, 38 Loans sold outright, 22 Federal National Mortgage Association, 33, 37, 38 Nondeposit funds, 19, 80-83 Federal Reserve Banks Number by classes, 71, 73, 75 Condition statement, 11 Real estate mortgages held, by holder and property, 38 Discount rates (See Interest rates) Terms of lending, 76-79 U.S. government securities held, 5, 11, 12, 30 Time and savings deposits, 4 Federal Reserve credit, 5, 6, 11, 12 Commercial paper, 25, 26, 36 Federal Reserve notes, 11 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 33 Construction, 45, 49 Finance companies Consumer installment credit, 39 Assets and liabilities, 36 Consumer prices, 45, 46 Business credit, 36 Consumption expenditures, 52, 53 Loans, 39 Corporations Paper, 25, 26 Nonfinancial, assets and liabilities, 35 Financial institutions Profits and their distribution, 35 Loans to, 22, 23, 24 Security issues, 34, 65 Selected assets and liabilities, 28 Cost of living (See Consumer prices) Float, 51 Credit unions, 39 Flow of funds, 40, 42, 43,44 Currency and coin, 70, 72, 74 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 5, 14 agencies, 23, 24, 80-83 Customer credit, stock market, 27 Foreign currency operations, 11 Foreign deposits in U.S. banks, 5, 11, 22, 23 DEBITS to deposit accounts, 17 Foreign exchange rates, 68 Debt (See specific types of debt or securities) Foreign trade, 54 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 Foreigners REAL estate loans Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 18, 22, 23, 38, 72 Liabilities to, 23, 54, 55, 57, 58, 63, 65, 66 Financial institutions, 28 Terms, yields, and activity, 37 GOLD Type of holder and property mortgaged, 38 Certificate account, 11 Repurchase agreements, 7, 19, 22, 23, 24 Stock, 5, 54 Reserve requirements, 9 Government National Mortgage Association, 33, 37, 38 Reserves Gross domestic product, 51 Commercial banks, 20 Depository institutions, 4, 5, 6, 13 HOUSING, new and existing units, 49 Federal Reserve Banks, 11 U.S. reserve assets, 54 INCOME, personal and national, 45, 51, 52 Residential mortgage loans, 37 Industrial production, 45,47 Retail credit and retail sales, 39, 40, 45 Installment loans, 39 Insurance companies, 30, 38 SAVING Interest rates Flow of funds, 40, 42, 43,44 Bonds, 26 National income accounts, 51 Commercial banks, 76-79 Savings and loan associations, 38, 39,40. (See also SAIF-insured Consumer installment credit, 39 institutions) Deposits, 16 Savings Association Insurance Funds (SAIF) insured institutions, 28 Federal Reserve Banks, 8 Savings banks, 28, 38, 39 Foreign central banks and foreign countries, 67 Savings deposits (See Time and savings deposits) Money and capital markets, 26 Securities (See also specific types) Mortgages, 37 Federal and federally sponsored credit agencies, 33 Prime rate, 25 Foreign transactions, 65 International capital transactions of United States, 53-67 New issues, 34 International organizations, 57, 58, 60, 63, 64 Prices, 27 Inventories, 51 Special drawing rights, 5, 11, 53, 54 Investment companies, issues and assets, 35 State and local governments Investments (See also specific types) Deposits, 22, 23 Banks, by classes, 20, 21, 22, 23, 24, 28 Holdings of U.S. government securities, 30 Commercial banks, 4, 18, 20-23, 72 New security issues, 34 Federal Reserve Banks, 11, 12 Ownership of securities issued by, 22, 23 Financial institutions, 38 Rates on securities, 26 LABOR force, 45 Stock market, selected statistics, 27 Life insurance companies {See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 34 Banks, by classes, 20-23 Prices, 27 Commercial banks, 4, 18, 20-23, 70, 72, 74 Student Loan Marketing Association, 33 Federal Reserve Banks, 5, 6, 8, 11, 12 Financial institutions, 28, 38 TAX receipts, federal, 29 Insured or guaranteed by United States, 37, 38 Thrift institutions, 4. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 46 Time and savings deposits, 4, 14, 16, 19, 20, 21, 22, 23, 24, 71, Production, 46, 48 73, 75 Margin requirements, 27 Trade, foreign, 54 Member banks (See also Depository institutions) Treasury cash, Treasury currency, 5 Federal funds and repurchase agreements, 7 Treasury deposits, 5, 11, 28 Reserve requirements, 9 Treasury operating balance, 28 Mining production, 48 UNEMPLOYMENT, 45 Mobile homes shipped, 49 U.S. government balances Monetary and credit aggregates, 4, 13 Commercial bank holdings, 20, 21, 22, 23 Money and capital market rates, 26 Treasury deposits at Reserve Banks, 5, 11, 28 Money stock measures and components, 4, 14 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 20-23, 24, 30 Mutual funds, 35 Dealer transactions, positions, and financing, 32 Mutual savings banks (See Thrift institutions) Federal Reserve Bank holdings, 5, 11, 12, 30 Foreign and international holdings and NATIONAL defense outlays, 29 transactions, 11, 30, 66 National income, 51 Open market transactions, 10 Outstanding, by type and holder, 28, 30 OPEN market transactions, 10 Rates, 25 U.S. international transactions, 53-67 PERSONAL income, 52 Utilities, production, 48 Prices Consumer and producer, 45, 50 VETERANS Administration, 37, 38 Stock market, 27 Prime rate, 25 WEEKLY reporting banks, 22-24 Producer prices, 45, 50 Wholesale (producer) prices, 45, 50 Production, 45, 47 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Federal Reserve Board of Governors and Official Staff Chairman ALAN GREENSPAN, WAYNE D. ANGELL Vice Chairman DAVID W. MULLINS, JR., EDWARD W. KELLEY, JR. OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director THEODORE E. ALLISON, Assistant to the Board for Federal CHARLES J. SIEGMAN, Senior Associate Director Reserve System Affairs DALE W. HENDERSON, Associate Director LYNN S. FOX, Special Assistant to the Board DAVID H. HOWARD, Senior Adviser WINTHROP P. HAMBLEY, Special Assistant to the Board DONALD B. ADAMS, Assistant Director BOB STAHLY MOORE, Special Assistant to the Board PETER HOOPER III, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel SCOTT G. ALVAREZ, Associate General Counsel MICHAEL J. PRELL, Director RICHARD M. ASHTON, Associate General Counsel EDWARD C. ETTIN, Deputy Director OLIVER IRELAND, Associate General Counsel WILLIAM R. JONES, Associate Director KATHLEEN M. O'DAY, Associate General Counsel THOMAS D. SIMPSON, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Deputy Associate Director WILLIAM W. WILES, Secretary PETER A. TINSLEY, Deputy Associate Director JENNIFER J. JOHNSON, Associate Secretary MYRON L. KWAST, Assistant Director PATRICK M. PARKINSON, Assistant Director BARBARA R. LOWREY, Associate Secretary MARTHA S. SCANLON, Assistant Director ELLEN MALAND, Assistant Secretary JOYCE K. ZICKLER, Assistant Director 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 NORMAND R.V. BERNARD, Special Assistant to the Board HOWARD A. AMER, Assistant Director 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

A87 JOHN P. LAWARE SUSAN M. PHILLIPS LAWRENCE B. LINDSEY OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director WILLIAM SCHNEIDER, Special Assignment: DAVID L. ROBINSON, Deputy Director (Finance and Project Director, National Information Center Control) PORTIA W. THOMPSON, Equal Employment Opportunity CHARLES W. BENNETT, Assistant Director Programs Officer JACK DENNIS, JR., Assistant Director EARL G. HAMILTON, Assistant Director DIVISION OF HUMAN RESOURCES JEFFREY C. MARQUARDT, Assistant Director MANAGEMENT JOHN H. PARRISH, Assistant Director DAVID L. SHANNON, Director LOUISE L. ROSEMAN, Assistant Director JOHN R. WEIS, Associate Director FLORENCE M. YOUNG, Assistant Director ANTHONY V. DIGIOIA, Assistant Director OFFICE OF THE INSPECTOR GENERAL JOSEPH H. HAYES, JR., Assistant Director FRED HOROWITZ, Assistant Director BRENT L. BOWEN, Inspector General 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

88 Federal Reserve Bulletin • August 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 Secretaiy 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, HI, 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

A89 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

A90 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, and Mexico. Elsewhere, $35.00 per year or $3.00 each. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- ANNUAL STATISTICAL DIGEST: period covered, release date, COUNTRY MODEL, May 1984. 590 pp. $14.50 each. number of pages, and price. WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. 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- 1986 November 1987 288 pp. $15.00 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 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 ancl 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

A91 STAFF STUDIES: Summaries Only Printed in the 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, Bulletin 1980-90, by Margaret Hastings Pickering. May 1991. 21pp. Studies and papers on economic and financial subjects that are of general interest. Requests to obtain single copies of the full 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM text or to be added to the mailing list for the series may be sent MORTGAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. to Publications Services. 163. CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR- KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, Staff Studies 1-145 are out of print. Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary Ann Taylor. March 1992. 37 pp. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by James T. Fergus and John L. Goodman, Jr. July 1993. Thomas F. Brady. November 1985. 25 pp. 20 pp. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr and Deborah Johnson. December 1985. 42 pp. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE REPRINTS OF SELECTED Bulletin ARTICLES ECONOMIC RECOVERY TAX ACT: SOME SIMULATION Some Bulletin articles are reprinted. The articles listed below RESULTS, by Flint Brayton and Peter B. Clark. December are those for which reprints are available. Most of the articles 1985. 17 pp. reprinted do not exceed twelve pages. Limit of ten copies 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN BANKING BEFORE AND AFTER ACQUISITION, by Stephen Recent Developments in the Bankers Acceptance Market. 1/86. A. Rhoades. April 1986. 32 pp. The Use of Cash and Transaction Accounts by American 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Families. 2/86. A REEXAMINATION AND AN APPLICATION, by John T. Financial Characteristics of High-Income Families. 3/86. Rose and John D. Wolken. May 1986. 13 pp. Prices, Profit Margins, and Exchange Rates. 6/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING Agricultural Banks under Stress. 7/86. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice Foreign Lending by Banks: A Guide to International and U.S. P. White, Paul F. O'Brien, and Mary M. McLaughlin. Statistics. 10/86. January 1987. 30 pp. Recent Developments in Corporate Finance. 11/86. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Measuring the Foreign-Exchange Value of the Dollar. 6/87. REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Changes in Consumer Installment Debt: Evidence from the April 1987. 18 pp. 1983 and 1986 Surveys of Consumer Finances. 10/87. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Home Equity Lines of Credit. 6/88. Alice P. White. September 1987. 14 pp. Mutual Recognition: Integration of the Financial Sector in the 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF European Community. 9/89. PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, The Activities of Japanese Banks in the United Kingdom and in by Glenn B. Canner and James T. Fergus. October 1987. the United States, 1980-88. 2/90. 26 pp. Industrial Production: 1989 Developments and Historical 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Revision. 4/90. Warshawsky. November 1987. 25 pp. Recent Developments in Industrial Capacity and Utilization. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING 6/90. MARKETS, by James V. Houpt. May 1988. 47 pp. Developments Affecting the Profitability of Commercial Banks. 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR 7/90. THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Recent Developments in Corporate Finance. 8/90. Porter, and David H. Small. April 1989. 28 pp. U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- The Transmission Channels of Monetary Policy: How Have MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE They Changed? 12/90. PRODUCTS, by Mark J. Warshawsky with the assistance of Changes in Family Finances from 1983 to 1989: Evidence from Dietrich Earnhart. September 1989. 23 pp. the Survey of Consumer Finances. 1/92. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSID- U.S. International Transactions in 1991. 5/92. IARIES OF BANK HOLDING COMPANIES, by Nellie Liang and Donald Savage. February 1990. 12 pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September 1990. 35 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 Maps of the Federal Reserve System ISlfBli^B^fcs^^^Pi. .^lis. BOSBT ON 2 | j|JjijljI® : - • NEW YORK CCCHHHIIICCCAAAGGGOOO 111 • PHILADELPHIA CCLLEEVVEELLAANNDD • SAN FRANCISCO 111000 44 q ^rawsHMMinnw 1 KKKAAANNNSSSAAASSS CCCFFFTTTYYYBBB ffii^^SSffttii JJiillll SSSTTT... LLLeeexxx... RicmrfOND 5 IIIBBBSSSlllFFFjjjiiiSSS •tliv ||#ff|«i|p|||||. ^BS^^^^lBiP ATLANTA «>, JPBIRHPHIHMMR.. PI ^^PiMrtli^lpSW^Il* DAUAS ALASKA HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts Commonwealth of Puerto Rico and the U.S. Virgin by number and Reserve Bank city (shown on both Islands; the San Francisco Bank serves American pages) and by letter (shown on the facing page). Samoa, Guam, and the Commonwealth of the In the 12th District, the Seattle Branch serves Northern Mariana Islands. The Board of Governors Alaska, and the San Francisco Bank serves Hawaii. revised the branch boundaries of the System most The System serves commonwealths and terri- recently in December 1991. tories as follows: the New York Bank serves the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A93 1-A 2-B 3-C 4-D 5_E Baltimore Pittsburgh A / • Cincinnati Buffalo • • \ KY CT NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H • Nashville TN n Birmingham. wr \ MS OA "illliilii Louisville mm LA m Jacksonville mmmij|||jj|gi New Orleans yy Miami • ATLANTA CHICAGO ST. LOUIS 9-1 NHBSI • Helena •M•MHBRMHLBtl ** IBBBBP FLR • • I BI MINNEAPOLIS 1100--JJ „„ 12-L Omaha • -- ^^ > MO DDeennvveerr NNMM 11—— Oklahoma City • KANSAS CITY 11-K 1 1X A ) Salt Lake City W I I LW MHII^ ^ '—. • • j • LA EI paso R Y iston • Los Angeles San Antonio HAWAII DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A94 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Jerome H. Grossman Richard F. Syron Warren B. Rudman Cathy E. Minehan NEW YORK* 10045 Ellen V. Futter William J. McDonough 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. KirkLandon James T. Curry m Nashville 37203 James R. Tuerfif Melvyn K. Purcell New Orleans 70161 Lucimarian Roberts Robert J. Musso CHICAGO* 60690 Richard G. Cline Silas Keehn Robert M. Healey William C. Conrad Detroit 48231 J. Michael Moore Roby L. Sloan1 ST. LOUIS 63166 Robert H. Quenon Thomas C. Melzer Janet McAfee Weakley James R. Bowen Little Rock 72203 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, lH1 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; East Rutherford, 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 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. U.S. MONETARY POLICY AND FINANCIAL MARKETS U.S. Monetary Policy and Financial Markets by Annc-ontext, examining first the evolution of Federal Marie Meulendyke offers an in-depth description of Reserve monetary policy procedures from their beginthe way monetary policy is developed by the Federal nings in 1914 to the end of the 1980s. It indicates how Open Market Committee and the techniques em- policy operates most directly through the banking ployed to implement policy at the Open Market Trad- system and the financial markets and describes key ing Desk. Written from her perspective as a senior features of both. Finally, the book turns its attention to economist in the Open Market Function at the Federal the transmittal of monetary policy actions to the U.S. Reserve Bank of New York, Ann-Marie Meulendyke economy and throughout the world. describes the tools and the setting of policy, including The book is $5.00 a copy for U.S. purchasers and many of the complexities that differentiate the process $10.00 for purchasers outside the United States. Copfrom simpler textbook models. Included is an account ies are available from the Public Information Departof a day at the Trading Desk, from morning ment, Federal Reserve Bank of New York, 33 Liberty information-gathering through daily decisionmaking Street, New York, NY 10045. Checks must accomand the execution of an open market operation. pany orders and should be payable to the Federal The book also places monetary policy in a broader Reserve Bank of New York in U.S. dollars. 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 guide to Business A Consumer's Credit Guicte to (or Women, Mortgage Minorities, and Lock-Ins Small Businesses jiBi\ Consumer Handbook to Credit Protection k Laws Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis