Federal Reserve Bulletin, 1994-01

VOLUME 80 • NUMBER 1 • JANUARY 1994 FEDERAL RESERVE BULLETIN 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 1 TREASURY AND FEDERAL RESERVE that the Federal Reserve is engaged in an FOREIGN EXCHANGE OPERATIONS aggressive effort in its fair lending examinations to identify any violations of the fair lend- During the August-October period, the dollar ing laws for corrective action, before the Senate appreciated 3.7 percent against the Japanese Committee on Banking, Housing, and Urban yen, depreciated 3.2 percent against the Ger- Affairs, November 4, 1993. man mark, and was little changed on a tradeweighted average basis, declining 0.4 percent. 19 John P. LaWare, member, Board of Governors, presents the views of the Board on the proposed legislation on Fair Trade in Financial 5 STAFF STUDIES Services (H.R.3248) and says that the legisla- In The Economics of the Private Placement tion would change two fundamental principles Market, the authors examine the economic in U.S. policy toward participation by foreign foundations of the market for privately placed financial firms in U.S. markets—national treatdebt, analyze the market's role in corporate ment and grandfather rights for existing foreign finance, and determine its relationship to other banking operations—and says that both of these corporate debt markets. They also analyze the principles are worth preserving, before the Subeffects on the market of recent occurrences committee on International Development, such as a credit crunch in the below- Finance, Trade and Monetary Policy of the investment-grade segment, the adoption of House Committee on Banking, Finance and Rule 144A by the Securities and Exchange Urban Affairs, November 9, 1993. Commission, and the changing role of commercial banks. 23 ANNOUNCEMENTS Response to proposals to restructure the bank- 7 INDUSTRIAL PRODUCTION AND CAPACITY ing supervisory agencies. UTILIZATION Industrial production rose 0.8 percent in Octo- Availability of 1994 fee schedules for services ber after an upwardly revised gain of 0.4 per- provided by the Federal Reserve Banks. cent in September. The utilization of total Approval of volume-based pricing for certain industrial capacity increased 0.8 percentage services and products offered by the Federal point between August and October. It now Reserve Banks of Richmond and Minneapolis. stands at 82.4 percent, the highest rate since August 1990 and 0.5 percentage point above Increase in the net transaction accounts to the 1967-92 average. which a 3 percent reserve requirement applies. Approval of an extension of an interim provi- 10 STATEMENTS TO THE CONGRESS sion in Regulation O. Lawrence B. Lindsey, member, Board of Gov- Supplemental information to the proposed rule ernors, presents the results of the 1992 Home on real estate appraisals; interagency notice of Mortgage Disclosure Act (HMDA) data and proposed rulemaking prescribing safety and says that the HMDA data provide a starting soundness standards required by section 132 of point for in-depth analyses of the mortgage the Federal Deposit insurance Corporation lending practices of individual institutions and Improvement Act of 1991; advance notice of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

porposed rulemaking on Regulation M; pro- A1 FINANCIAL AND BUSINESS STATISTICS posed amendments to Regulation DD; proposal These tables reflect data available as of to expand the Fedwire funds transfer format November 24, 1993. and adopt a more comprehensive set of data elements. A3 GUIDE TO TABULAR PRESENTATION Publication of a revision of the Bank Holding A4 Domestic Financial Statistics Company Supervision Manual. A44 Domestic Nonfinancial Statistics Change in Board staff. A53 International Statistics 25 MINUTES OF THE FEDERAL OPEN A69 GUIDE TO STATISTICAL RELEASES AND MARKET COMMITTEE MEETING SPECIAL TABLES At its meeting on September 21, 1993, the Committee adopted a directive that called for A70 INDEX TO STATISTICAL TABLES maintaining the existing degree of pressure on reserve positions and that did not include a A72 BOARD OF GOVERNORS AND STAFF presumption about the likely direction of any A74 FEDERAL OPEN MARKET COMMITTEE adjustment to policy during the intermeeting AND STAFF; ADVISORY COUNCILS period. Accordingly, the directive indicated that in the context of the Committee's long-run objectives for price stability and sustainable A76 FEDERAL RESERVE BOARD economic growth, and giving careful consid- PUBLICATIONS eration to economic, financial, and monetary A78 MAPS OF THE FEDERAL RESERVE developments, slightly greater or slightly lesser SYSTEM reserve restraint might be acceptable during the intermeeting period. The contemplated reserve A80 FEDERAL RESERVE BANKS, BRANCHES, conditions were expected to be consistent with AND OFFICES modest growth in M2 and M3 over the balance of the year. 33 LEGAL DEVELOPMENTS Various bank holding company, bank service corporation, and bank merger orders; and pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This quarterly report describes Treasury and Sys- U.S. monetary authorities purchased $165 million tem foreign exchange operations for the period against the yen in the period's only intervention from August through October 1993. It was pre- operation. sented by Peter R. Fisher, Senior Vice President and Manager for Operations of the Federal APPRECIATION AND SUBSEQUENT REVERSAL Reserve Bank of New York. Frank Keane was pri- OF THE YEN AGAINST THE DOLLAR marily responsible for preparation of the report. During early August, the yen strengthened against During the August-October period, the dollar the currencies of all major industrialized countries, appreciated 3.7 percent against the Japanese yen, reaching record highs against the dollar, the mark, depreciated 3.2 percent against the German mark, the Swiss franc, the pound sterling, and the Canand was little changed on a trade-weighted average adian and Australian dollars. On August 11, the basis, declining 0.4 percent.1 On August 19, the release of data indicating a wider-than-expected expansion of 28 percent (year-on-year) in Japan's 1. The dollar's movements on a trade-weighted basis are meamerchandise trade surplus to $11.84 billion trigsured using an index developed by the staff at the Board of Governors of the Federal Reserve System. gered a sharp yen appreciation, and it traded to a 1. Exchange rate movement of the dollar against the Japanese yen, May-October 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1994 new high against the dollar of ¥103.50. Continuing Initially, the operations surprised market particiweakness in domestic economic indicators was per- pants, and the dollar promptly rose. During the ceived as evidence that a reduction of Japan's morning, Treasury Under Secretary Summers current account surplus was unlikely in the near released a statement welcoming the decline in term, and the yen moved to several new daily highs Japanese money market rates and expressing conagainst the dollar, peaking at a postwar high of cern that further yen appreciation could retard ¥100.40 on August 17. growth in the Japanese and world economies. Oper- From August 16 to 18, conditions in the Japa- ations continued after Under Secretary Summers's nese money markets were eased. On August 19, the statement but ceased before noon. Market partici- Japanese cabinet met and agreed to try to devise pants subsequently continued to cover short posiadditional measures to stimulate domestic demand. tions throughout the afternoon, and the dollar The dollar was trading at ¥102.50 in early New reached a high of ¥106.75 before closing the day at York dealing on August 19 but then declined ¥105.95. quickly to ¥101.35 after the release of data on the In the month after the operation, the dollar-yen U.S. merchandise trade deficit, which, at $12.1 bil- exchange rate largely traded between ¥103.00 and lion for June, was worse than expected; at the same ¥106.00, as market participants increasingly time, the dollar abruptly declined 1 pfennig against focused on the apparent weakness of the Japanese the mark. The U.S. monetary authorities intervened economy. A series of Japanese data releases shortly after the release of the trade data. During showed continued weak business sentiment, deterithe day, they purchased a total of $165 million orating corporate profits, and a decline of 0.4 peragainst the yen, shared equally between the Federal cent in second-quarter gross domestic product. Reserve and the Treasury's Exchange Stabilization Consequently, when the Bank of Japan lowered the Fund. This operation was coordinated with another official discount rate (ODR) on September 21 by a monetary authority. greater-than-expected reduction of 75 basis points 2. Exchange rate movement of the dollar against the German mark, May-October 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 3 3. Implied three-month Eurocurrency interest rates: December futures contract Interest rate Interest rate differential 1.25 1.00 Japanese yen 0.75 Interest rate Interest rate differential 2.75 German mark 2.50 2.25 U.S. dollar August September October August September October to 1.75 percent, the action was perceived as an the Exchange Rate Mechanism (ERM) to fluctuate appropriate supplement to the government's efforts within 15 percent of their central parities. However, to stimulate the economy, not as a device to avoid authorities from Germany and the Netherlands further yen appreciation. Favorable reactions by agreed to maintain their bilateral exchange rate senior U.S. officials to the Bank of Japan's action within 2.25 percent of their central parity. During led to a perception that tensions between the United the uncertainty created by the currency turmoil in States and Japan on trade issues had given way to Europe, market participants had aggressively accugreater cooperation, and the yen declined about mulated dollar positions in late July. When widely 1.5 percent, closing on September 21 at ¥106.18. anticipated European interest rate reductions failed The dollar firmed gradually over the latter half of to materialize in the first few weeks of August, the the three-month period, while expectations of nearterm volatility in the dollar-yen exchange rate 4. Short-term interest rates, selected countries, dwindled substantially. The implied one-month AujmstrOctober 1993 option volatility fell from about 14 percent in mid- September to about 10 percent in late October. The Percent period closed with the dollar-yen exchange rate Germany 7 trading steadily above ¥108.00 in late October. 6 5 APPRECIATION OF THE MARK AGAINST THE United States DOLLAR IN THE WAKE OF THE ERM CRISIS Japan n The European Community finance ministers and central bank governors agreed, effective Mon- ~~i' day, August 2, to permit currencies participating in August September October Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1994 1. Federal Reserve reciprocal currency arrangements 2. Net profits or losses (-) on U.S. Treasury Millions of dollars and Federal Reserve foreign exchange operations1 Millions of dollars Amount of Institution facility, U.S. Treasury October 31, 1993 Federal Exchange Period and item Reserve Stabilization Austrian National Bank 250 Fund National Bank of Belgium 1,000 Bank of Canada 2,000 Valuation profits and losses on National Bank of Denmark 250 outstanding assets and liabilities Bank of England 3,000 as of July 31. 1993 3,226.6 3,005.5 Bank of France 2,000 Deutsche Bundesbank 6,000 Realized, August 1- Bank of Italy 3,000 October 31, 1993 22.1 22.1 Bank of Japan 5,000 Valuation profits and losses on outstanding assets and liabilities Bank of Mexico 700 as of October 31, 1993 3,368.5 2,839.0 Netherlands Bank 500 Bank of Norway 250 Bank of Sweden 300 1. Data are on a value-date basis. Swiss National Bank 4,000 Bank for International Settlements count and Lombard rates 50 basis points to Dollars against Swiss francs 600 Dollars against other authorized European 5.75 percent and 6.75 percent respectively. The currencies 1,250 council also announced that it would conduct the Total 3300,,110000 following week's fourteen-day repurchase agreement at a fixed rate of 6.40 percent, a reduction of 27 basis points from the previous day's variablemark began to appreciate against the dollar. The rate repurchase agreement. The dollar, which had negative sentiment toward the dollar during this begun rising gradually against the mark before the period was reinforced by market reports of dollar announcement, rose steadily over the remainder of sales by European central banks to adjust reserve the period, closing at DM1.6857 on October 29. positions after July's currency turmoil and by a widening of interest rate differentials in the mark's favor implied by Eurocurrency futures contracts. OTHER OPERATIONS The Bundesbank Council's decision on August 26 to leave official rates unchanged disap- The Federal Reserve and the Treasury's Exchange pointed market expectations of an interest rate cut, Stabilization Fund (ESF) each realized profits of and banks were caught short of funds at the end of $22.1 million from the sales of Japanese yen in the a reserve period. When the council did lower the market. Cumulative valuation gains on outstanding discount and Lombard rates 50 basis points to foreign currency balances as of the end of October 6.25 percent and 7.25 percent respectively on Sep- were $3,368.5 million for the Federal Reserve and tember 9, the concurrent, smaller-than-expected $2,839.0 million for the ESF. reduction of 10 basis points to 6.70 percent in the The Federal Reserve and the ESF regularly Bundesbank's money market repurchase rate led to invest their foreign currency balances in a variety continued tightness in German money markets. of instruments that yield market-related rates of These developments resulted in continued mark return and that have a high degree of liquidity and strength against the dollar. Although the mid- credit quality. A portion of the balances is invested September political unrest in Russia caused the in securities issued by foreign governments. As of dollar to appreciate briefly against the mark, the the end of October, the Federal Reserve and the dollar again drifted lower when the crisis was ESF held, either directly or under repurchase agreeresolved, closing at DM1.6013 on October 13. ments, $10,004.3 million and $10,276.6 million On October 21, the Bundesbank Council sur- respectively in foreign government securities valprised exchange markets by again reducing its dis- ued at end-of-period exchange rates. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

5 Staff Studies The staff members of the Board of Governors of the do not necessarily indicate concurrence by the Federal Reserve System and of the Federal Reserve Board of Governors, by the Federal Reserve Banks, Banks undertake studies that cover a wide range of or by members of their staffs. economic and financial subjects. From time to time Single copies of the full text of each study are the studies that are of general interest are pub- available without charge. The titles available are lished in the Staff Studies series and summarized in shown under "Staff Studies" in the list of Federal the Federal Reserve Bulletin. The analyses and Reserve Board publications at the back of each conclusions set forth are those of the authors and Bulletin. STUDY SUMMARY THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET Mark Carey, Stephen Prowse, John Rea, and Gregory Udell Prepared as a staff study in spring 1993 The private placement market is an important information about borrowers through due diligence source of long-term funds for U.S. corporations. and loan monitoring. Many borrowers in this mar- Nonetheless, it has received relatively little atten- ket are smaller, less-well-known companies or tion in the financial press or the academic litera- those with complex financings, and thus they can ture, partly because of the nature of the instrument be served only by lenders willing to perform extenitself. In particular, a private placement is a debt or sive credit analyses. Such borrowers effectively equity security sold in the United States that is have no access to the public bond market, which exempt from registration with the Securities and provides funding primarily to large, well-known Exchange Commission by virtue of being issued in firms posing credit risks that can be evaluated and transactions "not involving any public offering." monitored with publicly available information. Thus, information about private transactions is In this respect, private market lenders, which are often limited, and following and analyzing devel- mainly life insurance companies, resemble banks opments in the market are difficult. Indeed, the last more than they resemble buyers of publicly issued major study of the private placement market was corporate debt. However, the private placement published in 1972, and only a few articles have market is not exactly like the bank loan market: appeared in economics and finance journals since Private placements are mainly longer-term, fixedthen. rate debt, and borrowers in this market are on This study examines the economic foundations average larger and less information problematic of the market for privately placed debt, analyzes than bank borrowers. Private placements typically the market's role in corporate finance, and deter- have fewer and weaker covenants and are less mines its relationship to other corporate debt mar- frequently secured than bank loans. kets. One key characteristic of the private place- The study compares the terms of private placement market is that it is information intensive, ments with those of public bonds and bank loans meaning that lenders must on their own obtain and analyzes the characteristics of borrowers, their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1994 motivations for using the private market, and the events, highlights the fragility of informationoperations of lenders. It presents an explanation intensive markets. grounded in theories of financial intermediation The adoption of Rule 144A in 1990, which clariand financial contracting for the structure of the fied the circumstances under which a privately market and for the differences between the private placed security could be resold, has led to the market and other markets for corporate debt. It also development of a market segment for private placedescribes the process by which private issuance ments that are not information intensive. This new occurs, focusing on the role of agents, which advise segment is thus fundamentally different from the issuers and assist in distributing securities. older, traditional market and has many character- Finally, the study analyzes some recent occur- istics of the public bond market. Its primary attracrences affecting the market, including a credit tion for borrowers has been the availability of crunch in the below-investment-grade segment, the funds at interest rates only slightly higher than adoption of Rule 144A by the Securities and those in the public market without the costs of Exchange Commission, and the changing role of registration. commercial banks. In the past, life insurance com- Commercial banks act both as agents in the panies were the primary buyers of low-rated pri- private placement market and as providers of loans vate placements, but most have stopped buying that compete somewhat with private placements. such issues, leaving many medium-sized borrowers The study considers the prospects for a substantial with few alternatives for long-term debt financing. increase in competition between the bank loan and The study's explanation for the crunch, which private placement markets and for a substantial emphasizes a confluence of market and regulatory change in banks' roles as agents. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

7 Industrial Production and Capacity Utilization for October 1993 Released for publication November 15 parts—up 3.9 percent in September and 7.3 percent in October after four months of negative to flat Industrial production rose 0.8 percent in October growth. Excluding motor vehicles and parts, indusafter an upwardly revised gain of 0.4 percent in trial production increased 0.3 percent in September September. This recent acceleration was fueled by and 0.4 percent in October. At 112.2 percent of its a rebound in the production of motor vehicles and 1987 average, total industrial production was Industrial production indexes Twelve-month percent change Twelve-month percent change Durable manufacturing 1988 1989 1990 1991 1992 1993 1988 1989 1990 1991 1992 1993 Capacity and industrial production Ratio scale, 1987 production =100 Ratio scale, 1987 production = 100 — Total industry 140 — Manufacturing 140 CCaappaacciittyy CCaappaacciittyy .. - 120 — ^ ' ^ ^^ ~ — 120 100 100 Production Production 8800 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing 90 — — Utilization Utilization 80 ^ —- 70 J I L J L 1 1 1 1 1 1 1 1 1 1 1 1 1981 1983 1985 1987 1989 1991 1993 1981 1983 1985 1987 1989 1991 1993 All series are seasonally adjusted. Latest series, October. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1994 Industrial production and capacity utilization1 Industrial production, index, 1987 = 100 Percentage change Category 1993 19932 Oct. 1992 to Julyr Aug.r Sept. Oct.p July' Aug.' Sept.' Oct.p Oct. 1993 Total 110.8 110.9 111.4 112.2 3 .1 .4 .8 4.4 Previous estimate 110.7 110.9 111.0 .2 .1 .2 Major market groups Products, total3 110.0 110.1 110.7 111.7 .6 .1 .5 .9 4.3 Consumer goods ... 107.7 107.5 107.9 109.3 .3 -.1 .4 1.2 2.7 Business equipment 137.1 137.6 139.4 141.3 .8 .3 1.3 1.4 10.9 Construction supplies 98.4 98.5 99.5 99.7 1.7 .1 1.0 .2 5.3 Materials 112.0 112.1 112.4 113.0 -.1 .1 .3 .6 4.6 Major industry groups Manufacturing 111.6 111.8 112.5 113.5 .3 .1 .6 .9 5.1 Durable 115.4 115.6 116.8 118.3 .7 .2 1.0 1.3 7.7 Nondurable 107.0 107.1 107.2 107.5 -.2 .1 .1 .4 1.6 Mining 96.4 95.5 97.2 96.6 -1.7 -.9 1.7 -.5 -1.0 Utilities 116.9 117.8 114.9 115.0 1.8 .8 -2.5 .1 2.0 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1992 1993 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, OOOcccttt... 111999999222 11996677--9922 11998822 11998888--8899 tttooo Oct. July' Aug.' Sept.' Oct.p OOOcccttt... 111999999333 Total 81.9 71.8 84.8 80.2 81.7 81.6 81.9 82.4 1.6 Manufacturing 81.2 70.0 85.1 79.2 80.7 80.7 81.1 81.7 1.8 Advanced processing 80.7 71.4 83.3 77.9 79.2 79.1 79.6 80.3 2.2 Primary processing . 82.2 66.8 89.1 82.3 84.5 84.7 84.7 85.0 .9 Mining 87.4 80.6 87.0 87.1 86.5 85.8 87.4 86.9 -.8 Utilities 86.7 76.2 92.6 85.6 88.1 88.7 86.4 86.4 1.1 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. 4.4 percent above its level a year ago. The utiliza- output of clothing. Aside from motor vehicles and tion of total industrial capacity increased 0.8 per- parts, other types of business equipment also centage point between August and October. It now advanced: Output of industrial equipment gained stands at 82.4 percent, the highest rate since Au- 0.3 percent, and the production of information progust 1990 and 0.5 percentage point above the cessing equipment and that of other equipment 1967-92 average. both rose 0.9 percent. In contrast, the index for When analyzed by market group, the data show defense and space equipment continued its downthat the turnaround in motor vehicles and parts ward trend, declining 0.9 percent. contributed to strong October gains in the indexes After increasing 1.0 percent in September, the for durable consumer goods, business equipment, output of construction supplies grew only 0.2 perand durable goods materials. The production of cent in October. In contrast, the overall output of consumer durables other than automotive products materials increased 0.6 percent, up from 0.3 perincreased 1.3 percent, a rise led by gains in the cent in September. This increase was concentrated production of household furniture and appliances. largely in durable goods materials, which expanded The production of consumer nondurables rose 1.1 percent. Along with the pickup in the output of 0.6 percent, as growth in the output of food and motor vehicle parts, continued gains in the productobacco, consumer chemical products, and fuels tion of computer parts and semiconductors paced more than offset an 0.8 percent decline in the the growth in durable goods materials. Elsewhere Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 9 in the materials group, the production of nondura- and steel, fabricated metals, nonelectrical machinble goods materials advanced 0.4 percent, but the ery, electrical machinery, food, tobacco, textiles, production of energy materials declined 0.3 percent chemicals, petroleum, and leather industries. As a because of a decrease in oil and natural gas result, the utilization of manufacturing capacity extraction. increased 0.6 percentage point in October, to When analyzed by industry group, the data show 81.7 percent, one-half percentage point above its that after rising 0.6 percent in September, manufac- average rate from 1967 to 1992. And the utilization turing output expanded 0.9 percent in October. The rate in primary-processing industries reached output of durable goods industries grew 1.3 per- 85.0 percent, well above its longer-run average rate cent, but the production of nondurable goods indus- of 82.2 percent. tries rose only 0.4 percent. Along with the gains in Utilities production edged up 0.1 percent the motor vehicles and parts industry, noticeable in October, but mining output slipped back increases were also recorded in the furniture, iron 0.5 percent. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Statements to the Congress Statement by Lawrence B. Lindsey, Member, housing loans applied for, compared with earlier Board of Governors of the Federal Reserve Sys- years. The HMDA data show that more than tem, before the Committee on Banking, Hous- 10 million such loans were applied for, compared ing, and Urban Affairs, U.S. Senate, November with fewer than 7 million in 1991 and just 5.2 mil- 4, 1993 lion in 1990. There is no question that a combination of lower interest rates and an improving I am pleased to appear before your committee and expanding economy in 1992 were the pritoday to present the results of the 1992 Home mary reasons for this growth. Mortgage Disclosure Act (HMDA) data. I will The primary source of the growth in the volalso make some remarks about the Federal Re- ume of reported home lending activity was a serve's fair lending enforcement efforts. dramatic increase in home refinancing. In 1992, Discrimination tears at the fabric of our dem- 5.2 million applications for home refinancing ocratic society. For the Federal Reserve, no were reported, compared with just 2.1 million in single consumer issue is of greater concern than the previous year. The total number of home ensuring that the credit-granting process in the purchase loan applications also rose nearly institutions that we regulate is free of unfair bias. 300,000. In addition, the number of applications Fairness in the assessment of credit applications for home improvement loans rose modestly. Not is absolutely critical to our nation's well-being. only was the number of applications up, but so Racial discrimination in particular—no matter was the number of approvals. More than 4 milhow subtle, and whether intended or not—can- lion home refinancing loans were approved, 77.7 not, and will not, be tolerated. percent of the total applied for, compared with The Federal Reserve's primary responsibility roughly 1.5 million and a 73.2 percent approval with respect to the HMDA data is to provide the rate in 1991. Home purchase approval rates for data processing services for all the agencies conventional loans were also up modestly, from under the auspices of the Federal Financial In- 71.2 percent in 1991 to 72.9 percent in 1992. stitutions Examination Council (FFIEC) as a Approval rates for government-backed loans also matter of operational convenience. rose. The responsibility for gathering the HMDA This higher approval rate benefited both information, and ensuring that institutions follow black and white applicants. Conventional home fair lending practices, is allocated by law to six purchase loan approval rates rose 1.4 percentfederal agencies. Of the more than 9,000 institu- age points for blacks and 1.9 percentage points tions that reported HMDA data in 1992, the for whites. Government-backed mortgage ap- Federal Reserve supervised approximately 600. proval rates rose 2.0 percentage points for For fair lending compliance—which applies not blacks and 3.0 percentage points for whites. Of just to the institutions that file HMDA data but to those individuals refinancing their homes, black all depositories—we supervise about 1,000 of the approval rates rose roughly 6 percentage almost 13,000 banks and thrift institutions. points, while white approval rates rose 4 percentage points. I would point out that these rises in approval rates for refinancings are particularly striking given that the number of ap- GENERAL DATA DESCRIPTION plications for both groups more than doubled. And finally, with regard to home improvement The most striking feature of the HMDA data for loans, black approval rates rose 3.5 percentage 1992 is the enormous rise in the total number of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 11 points, while white approval rates rose 1.9 white applicants for conventional home loans in percentage points. all income groupings have lower rates of denial Approval rates also rose across the board for than do black and Hispanic applicants. In fact, all income groups. Home refinancing loan ap- the denial rate of 21.1 percent for whites in the proval rates rose roughly 4 percentage points for lowest income category (less than 80 percent of each major income group, while home purchase the MSA median family income) is the same as loan approval rates rose most dramatically for for blacks in the highest income category (more low-income borrowers. The approval rate for than 120 percent of the MSA median family applicants with incomes less than 80 percent of income).1 the metropolitan statistical area (MSA) median Differential treatment on the basis of race and income went from 59.8 percent in 1991 to 68.9 national origin may contribute to the variation, percent in 1992 for conventional loans. For gov- but it too does not fully explain the disparities in ernment-backed loans, the same group experi- denial rates across racial and ethnic groups. For enced a rise in approval rate from 66.2 percent to example, the study by the Federal Reserve Bank 74.8 percent. Approval rates for other income of Boston of lending patterns in Boston congroups, on the other hand, were up roughly 1 to cluded that, after controlling for all known finan- 2 percentage points. cial factors, race and national origin appeared to The disparities between black and white ap- account for differences in denial rates among proval and denial rates persist. For example, applicants. At the same time, the study also looking at conventional home purchase loans, concluded that differences in income, together about 36 percent of black applicants and 27 with other financial characteristics, alone would percent of Hispanic applicants were denied have caused black and Hispanic applicants to be credit, compared with 16 percent of white appli- denied credit at nearly twice the rate of white cants and 15 percent of Asian applicants— applicants. roughly the same as in 1991, although a slight The Boston study highlighted the limitations of improvement for black applicants. This matter interpreting the HMDA data. Such limitations do continues to be of great concern. not in any way diminish the importance of ensur- Before going on, it is important to stress what ing equal access to credit for all Americans. The conclusions can be drawn from the HMDA data. data merely point out the problems with relying There is no question that the differential denial on purely statistical analysis in reaching conclurates and approval rates for different income sions about the fairness of lending decisions. As groups are troubling. However, the denial rates I will note later in my remarks, the approach for applicants categorized by their race or na- taken by the Federal Reserve and other agencies tional origin reflect a variety of factors. One in developing new analytic techniques for invesfactor relates to differences in the proportion of tigating lending bias strikes a balance between each group with relatively low incomes. In 1992, traditional investigative techniques and computer- 21.0 percent of the white applicants for conven- assisted statistical analysis. In particular, we use tional home purchase loans had incomes that statistics to identify specific loan files that are were less than 80 percent of the median family suspicious and require further investigation. income for their MSA. The comparable percent- However, statistics alone can never, and should ages for blacks, Hispanics, and Asians were 37.1 never, be used as the sole criterion for determinpercent, 27.6 percent, and 16.1 percent respec- ing whether discrimination exists in a particular tively. institution. Although the distribution of applicants by income may account for some variation among racial groups in loan disposition rates, looking at the 1992 HMDA data, other factors account for most of the difference. Differences in income do 1. In the highest income category, the denial rate was 8.8 not completely explain it. This conclusion is percent for whites in 1992; the denial rate for blacks in the evident because, after controlling for income, lowest income category was 36.0 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1994 THE DISCLOSURE PROCESS QUALITY OF THE DATA Under HMDA, most mortgage lenders that have I would like to say a few words about the quality offices in metropolitan areas, including indepen- of the HMDA data. Over the years, we and the dent mortgage companies, disclose information other agencies that process HMDA data have had on the disposition of home loan applications and concerns about errors in the data that are submiton the race or national origin, gender, and annual ted to us. By and large, errors can be traced to the income of loan applicants and borrowers. Lend- data submitted (such as a lender's recording iners also disclose, for loans originated or pur- correct census tract numbers), although a few chased during a year, the loans they sold, classi- may arise during the agencies' data entry of loan fied by the type of secondary market purchaser, register data submitted in hard copy. In the past and may indicate the reasons for denial of other three years, we have improved our capability to applications.2 identify errors. As a result, we have succeeded in Covered institutions record separately, for reducing the data errors in computer records from each loan application acted on and each loan roughly 5 percent in 1990 and 1991 to less than purchased, the items of information required by one-half of 1 percent now. the Federal Reserve Board's Regulation C. Other types of errors cannot be identified at the Lenders submit this information to their respec- processing stage. It is difficult to know, for intive federal regulator, which then sends the data stance, whether a financial institution has incorto us for processing. Acting through the Federal rectly identified the race of the applicant or has Reserve, the FFIEC produces disclosure state- entered a census tract number that is valid but that ments for each covered lender to make available is not correct for the property location to which to the public, plus an aggregate report for each the loan relates. Such errors evade our centralized metropolitan statistical area. These reports show data quality checks. Our examiners have stepped the overall lending activity for covered lenders in up their efforts to detect these problems during each MSA and, together with the individual bank examinations, and we require institutions to disclosure statements for lenders active in a correct and resubmit their HMDA data when we given MSA, are available to the public at central find errors. Financial institutions are strongly endata depositories. This information is also made couraged to ensure that they report accurate inavailable to the public in libraries throughout the formation; we help them by providing software United States. with edit-check capabilities and through distribu- Besides the print versions of the disclosure tion of the FFIEC publication A Guide to HMDA statements and aggregate reports, the FFIEC Reporting: Getting it Right! makes HMDA data available to the public in other forms. For instance, the HMDA reports or underlying data are available on microfiche, com- DETAILED RESULTS OF THE 1992 HMDA puter tape, and PC diskette and soon will be DATA COLLECTION provided on CD ROM. The CD ROM format should be much more manageable than paper and The 1992 HMDA data reflect information submitmicrofiche for many users—especially those who ted by 9,073 lenders, including 5,468 commercial view the data at central depositories—and will banks, 1,395 savings and loan associations, 1,706 offer selections for viewing the data by MSA or credit unions, and 504 mortgage companies (of by institution. which 224 were unaffiliated with a depository institution). The number of lenders disclosing data fell about 3 percent from 1991, a reflection of acquisitions, mergers, and failures.3 Although 2. Expanded data collection was required pursuant to amendments to HMDA in the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). The expansion in coverage of mortgage companies came with FIRREA and with the amendments to HMDA in the Federal 3. The total number of reporters will be higher for 1993, Deposit Insurance Corporation Improvement Act of 1991. given the increased number of independent mortgage compa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 13 the number of reporting institutions fell, the total creased roughly 4 percent from 1991 to 1992. number of applications and loans reported in- This change in market share reflects a substantial creased more than 50 percent, from 7.89 million decline in FHA activity. In 1991 the FHA acin 1991 to 12.01 million in 1992. Much of the counted for 20.4 percent of all purchase loan increase was due to refinancing activity. applications and 20.5 percent of all home purchase loans. In 1992 these shares were 15.7 Volume of Applications and Loans percent and 16.3 percent respectively. Recent increases in the cost to homebuyers using FHA In 1992, lenders covered by HMDA acted on loans, and greater availability of conventional roughly 10.03 million home loan applications— loan products designed to reach low- and 3.54 million for purchasing, 5.22 million for refi- moderate-income homebuyers, likely account for nancing, and 1.24 million for improving dwellings the reduced reliance on FHA loans. for one to four families, and the balance for loans Despite this decline, the FHA program is faon multifamily dwellings for five or more fami- vored by many thousands of households, particlies.4 Nearly 78 percent of the reported applica- ularly among first-time homebuyers. For intions for home purchase loans were for conven- stance, in 1992 almost half of the homebuyers tional mortgage loans; the remainder were for using section 203(b) FHA loans (the principal government-backed forms of credit—loans in- type of FHA single-family mortgage loan prosured or guaranteed by the Federal Housing gram) were first-time homebuyers. The propor- Administration (FHA), the Veterans Administra- tion had been even higher in 1991, when 57 tion (VA), or the Farmers Home Administration percent of the FHA borrowers were first-time (FmHA). The predominant reason for the sub- homebuyers.6 On the other hand, the program is stantial increase in volume of home loan applica- used infrequently to refinance existing home tions reported in 1992 was the growth in refinanc- loans. Historically, FHA loans have accounted ing activity. Spurred primarily by lower interest for only 3 percent to 4 percent of the refinancings rates, the volume of applications to refinance an annually. In 1992, FHA loans accounted for 3.7 existing mortgage loan increased in 1992 almost percent of the 3.95 million refinancing loans 150 percent over the previous year. The growth reported by lenders covered by HMDA. One can in refinancings also reflects innovations in the surmise that households refinancing a loan often marketplace, including the greater availability of have accumulated sufficient equity in the home "no-fee" loans and more efficient processing of and no longer need the FHA's low-downpayment applications that helped reduce closing costs.5 feature. Among the different racial and ethnic groups, the increase in 1992 applications for conventional Use of Various Loan Products for Home loans by Asians was 5 percent, by blacks 22 Purchase percent, by Hispanics 8 percent, and by whites 17 percent. Applications for government-backed In 1992, 33.4 percent of home purchase loan loans decreased roughly 5 percent for each applicants with low incomes (income less than 80 group. percent of the median family income for their The conventional mortgage share of all re- MSA) applied for government-backed loans, ported home purchase loan applications in- compared with 13.2 percent of applicants with high incomes (income more than 120 percent of the median family income for their MSA). The nies that will report lending activity as a consequence of greater reliance of lower-income households on changes in coverage that took effective January 1, 1993. government-backed loans reflects several fac- 4. Besides applications, lenders also reported data on 1.98 tors. For instance, low-income households are million loans they purchased during 1992 from other institutions. 5. "No-fee" loans are those in which the consumer incurs no out-of-pocket expense to pay either closing costs or 6. U.S. Department of Housing and Urban Development, discount points on the loan. Such loans are often written with Characteristics of FHA Single-Family Mortgage: Selected a higher interest rate to compensate. Sections of National Housing Act, (HUD, 1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 1994 much more likely to have limited money avail- denial rates. In addition, innovative mortgage able to meet downpayment and closing cost loan programs by many lenders and greater use requirements; hence, they are much more likely of affordable home loan programs sponsored by to use government-backed home loan pro- secondary market institutions may also have grams. Conversely, the maximum limits on contributed to the decline in denial rates. FHA loan insurance make this program less useful to households seeking to buy expensive properties. Disposition Rate for Different Groups of Among the racial groups, blacks are much Applicants more likely than other groups to seek government-backed home purchase loans. In 1992, The rates of approval and denial vary consider- 41.2 percent of black applicants who applied for ably among home loan applicants grouped by a home purchase loan sought government- their income and racial characteristics. Nationbacked loans; the comparable figures for His- wide in 1992, 80.5 percent of the applicants for panics, whites, and Asians were 31 percent, conventional home purchase loans who were in 20.9 percent, and 10.6 percent respectively. the highest income grouping were approved for These differences among racial groups are not loans, compared with 68.9 percent for the lowentirely attributable to differences in income. est income grouping. A similar relationship For instance, among low-income loan appli- between approval rates and applicant income is cants, 53.3 percent of blacks sought FHA or VA found for other types of home loans, including loans, whereas only 40.4 percent of Hispanic government-backed home purchase loans and applicants, 31.2 percent of white applicants, loans for refinancing and for home improveand 21.7 percent of Asian applicants applied for ment. a government-backed loan. As in previous years, the 1992 HMDA data show that greater proportions of black and His- Disposition of Loan Applications panic loan applicants than of Asian and white applicants are turned down for credit. Consistent The 1992 HMDA data continue to show that with these findings, the data also indicate that the lenders approve most home loan applications, rate of loan denial generally increases as the particularly for buying a home or refinancing an proportion of minority residents in a neighborexisting loan. In regard to home purchase loans, hood increases. lenders approved roughly 72.9 percent of appli- Nationwide, for conventional home purchase cations for conventional financing and 74.1 per- loans, 35.9 percent of black applicants, 27.3 cent of applications for government-backed fi- percent of Hispanic applicants, 15.9 percent of nancing. For refinancings, they approved 77.7 white applicants, and 15.3 percent of Asian appercent of the applications. plicants were denied credit in 1992. By compar- A comparison of the 1991 and 1992 HMDA ison, the denial rates nationwide in 1991 for data indicates that, nationally, denied applica- conventional loans were 37.4 percent for blacks, tions for conventional home purchase loans 26.5 percent for Hispanics, 14.9 percent for declined somewhat, dropping from 18.9 percent Asians, and 17.3 percent for whites. in 1991 to 17.8 percent in 1992. Denial rates The numbers for government-backed loans rewere also slightly lower in 1992 for applications flect somewhat lower rejection rates than for for government-backed home purchase loans conventional loans. In 1992, 23.8 percent of and for home improvement loans. For refinanc- black applicants, 18.5 percent of Hispanic appliings, on the other hand, denial rates dropped cants, 13.5 percent of Asian applicants, and 12.8 significantly—from 15.9 percent in 1991 to 12.4 percent of white applicants were denied credit. percent in 1992. In general, low interest rates in In 1991, by comparison, the rates of loan denial 1992 coupled with relatively stable home values were 26.4 percent for blacks, 18.9 percent for made homeownership more affordable in 1992 Hispanics, 16.3 percent for whites, and 12.5 than in 1991 and may account for the lower percent for Asians. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 15 Changes in the Amount of Lending by increase in loans extended to white households Income and Race was a substantial 20.5 percent; the increases for Hispanics and Asians were a more modest 7.6 In recent years, lenders have targeted low- and percent and 5.6 percent respectively. The nummoderate-income households and those seeking ber of loans made to minorities is not necessarily to buy homes in low- and moderate-income large, however. For example, out of a total of neighborhoods. Often such applicants have the 1,896,000 conventional loans made in 1992 to the necessary income to purchase homes in the price four largest racial or ethnic groups, whites rerange they seek but lack the money to meet ceived 1,582,030, Asians received 68,416, Histraditional downpayment and closing cost re- panics received 66,995, and blacks received quirements. In some special programs, such as 56,516. those sponsored by Fannie Mae and Freddie For each group, the largest percentage gains in Mac, loan underwriting guidelines have been conventional home purchase loans occurred made more flexible. For example, these agen- among homebuyers with incomes below the mecies' Community Homebuyers Programs have dian family income for their MSA. For example, reduced the amount that must come from the among blacks whose incomes were below the applicant's own funds to cover the downpayment median, the increase was 33.9 percent. The perand closing costs, and lenders may take into centage changes for whites, Hispanics, and account rent and utility payment records in lieu Asians in this income group were 28.2 percent, of other credit history information.7 Other lender 25.4 percent, and 42.2 percent respectively. programs also target households with low asset levels and help keep monthly payments within Continuing Efforts to Eliminate Lending the borrower's reach by waiving the usual re- Discrimination quirements for private mortgage insurance on these very low downpayment loans. The HMDA reports reveal that credit history It is difficult to gauge how much these targeted problems and excessive debt levels relative to loan programs have increased homebuying op- income are the reasons most frequently given for portunities for low- and moderate-income house- credit denials. But specific information for appliholds. Our analysis of the 1992 HMDA data cants—on their level of debt, debt repayment does, however, reveal a 27.1 percent increase in record, employment experience, and other facconventional home purchase loans to applicants tors pertinent to an assessment of credit risk—is from the two lowest income groupings (borrow- not available from the HMDA data. Nor do the ers whose incomes were below the median family HMDA data tell us about the specific underwritincome for their MSA). The number of conven- ing standards used to assess prospective borrowtional loans to borrowers from the two highest ers' applications. A popular tendency assumes income groupings (borrowers whose incomes that high denial rates are the result of unfair bias. were equal to or greater than the median family In fact, the HMDA data by themselves do not income for their MSA) also increased but by a give us a sufficient basis for assessing the fairness more modest 12.3 percent rate. of the loan process or whether fair lending laws We have seen some change in the volume of have been violated. The HMDA data do, howconventional home purchase loans to different ever, provide a valuable tool to begin the inquiry racial groups from 1991 to 1992. Blacks had the into this question. largest growth in the number of loans received, If you read the HMDA data on denial rates for increasing 25.9 percent from 1991 to 1992. The minority applicants as synonymous with lending discrimination, then the similarities in each year's HMDA data would suggest that lending 7. Other changes in the underwriting guidelines pertain to discrimination may be intractable. I do not bethe treatment of nontaxable income and income from sea- lieve that to be the case. But it will take new and sonal part-time or second jobs, income continuity and job increased measures to prevent, root out, and stability, debt-to-income ratios, the appraiser's neighborhood and home improvement analyses, and property condition. eliminate the problem. Such measures to deal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 1994 with the problem, both directly and indirectly, Credit Opportunity and Fair Housing Acts, and are under way—among all the regulatory agen- from the beginning our examiners have been cies—through enhancing examiner capabilities trained to place special emphasis on problems for detecting fair lending violations by financial involving potential discrimination of the kind institutions, increasing public information about prohibited by those statutes. discrimination in lending, and reforming the The Federal Reserve examines every state Community Reinvestment Act regulation. member bank at periodic intervals and on a regular basis. On average, about two-thirds of Fair Lending Enforcement state member banks are examined each year for compliance with the fair lending and consumer In our program for enforcing fair lending, the protection laws. In general, examinations are Federal Reserve follows a coordinated approach. scheduled every eighteen months for banks with It focuses on examining for compliance with fair a satisfactory record. For a limited number of lending laws and more broadly on ensuring that banks with exceptional records, examinations credit is made available to low- and moderate- take place every two years. Those banks with income areas, including those with substantial less than satisfactory records are examined every minority populations. Our approach also encom- six months or every year, depending on the passes an aggressive program to investigate con- severity of their problems. sumer complaints, provide consumer and credi- The examination procedures focus primarily tor education, and gain insight through research. on comparing the treatment of members of a Let me describe each segment briefly. In the minority or protected class with other loan appliresearch area, the study by the Federal Reserve cants. First, the examiner reviews the bank's Bank of Boston is well known. In my view, that loan policies and procedures by looking at bank study, released in October 1992, has done more documents and interviewing lending personnel. than any other single effort to advance our un- The examiner seeks to determine, among other derstanding about fair mortgage lending and to things, the bank's credit standards, and then— suggest ways for us to attack the problem. It using a sample of actual loan applicants—to served to shift the focus, I believe, from an determine whether bank personnel have applied ongoing debate on whether unlawful discrimina- those standards uniformly. Special note is taken tion exists in the mortgage markets to a con- of applications received from minorities, women, certed effort on the part of financial institutions, and others whom the fair lending laws were the regulatory agencies, and members of the designed to protect. The examiner looks at the public to search for ways to eliminate discrimi- same information the bank used to make its natory practices. credit decision, including credit history, income, Other research pieces—on HMDA data, and total debt burden. If the bank's credit stanhousehold debt, credit shopping practices, the dards appear not to have been followed, or not secondary market, and other related subjects— applied consistently, these findings are discussed also have advanced our knowledge. And last with lending personnel and a more intensive week, the Federal Reserve released a compre- investigation is undertaken. Finally, an overall hensive report to the Congress that compares the analysis of the bank's treatment of applications risks and returns of lending in low-income, mi- from minorities, women, and others within pronority, and distressed neighborhoods with those tected classes is conducted to identify any patin other communities. terns or individual instances that might indicate In regard to enforcement, the Federal Reserve applicants were treated less favorably than other System has oversight responsibility for approxi- loan applicants. When we find violations through mately 1,000 state member banks. We have a any of these techniques, we will require correccomprehensive program of consumer compliance tion by the institution, notification to the appliexaminations, established in 1977, that are car- cant, and referral of the matter to the Department ried out by specially trained examiners. The of Justice or Department of Housing and Urban scope of these examinations includes the Equal Development in appropriate cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 17 Another important part of the examination their time more effectively on the actual fair involves talking with people in the community lending review of loan files. who are knowledgeable about local credit needs. Besides this "micro" use of the HMDA data, Federal Reserve examiners routinely ask mem- the Federal Reserve has developed, after discusbers of the community, local government offi- sions with the FFIEC constituent agencies, a cials, and the like about perceptions of credit computerized system for analyzing the expanded availability for minorities and low- and moderate- data collected under HMDA. The system is income persons. The answers may suggest that a versatile and allows the data to be segmented by particular area of the bank needs additional scru- demographic characteristics such as race, gentiny and may provide insights into how the bank der, and income levels, or geographic boundis serving the credit needs of its local community, aries. Examiners can now sort through vast particularly among those protected by the anti- quantities of data to focus attention on data for discrimination statutes. specific lending markets and to compare an indi- But as you know, even with these procedures, vidual HMDA reporter's performance against it is difficult for our examiners to find evidence that of all other lenders in the area. They can that we can be sure proves racial discrimination. more readily determine whether a bank is effec- Consequently, we have been searching for ways tively serving, through mortgage and home imto provide them with better detection tools. provement lending, all segments of its market, Recently, the Federal Reserve System developed including low- and moderate-income and minora computerized statistical model for using ity neighborhoods. And examiners can use this HMDA data in the fair lending portion of the information to get a profile of the bank before examination, and we have shared this tool with they begin their examination, which gives them a the other financial regulators. I believe the model head start in their investigation. We have been we have developed has the potential to be a holding HMDA training sessions on how to use substantial step forward, although we are still this system around the country for our examinmaking adjustments to make sure it works as we ers, as well as those from other agencies. want it to. The Federal Reserve has also developed the Starting with the HMDA data, the model al- capability to map by computer the geographic lows the examiner to more expeditiously select a location of a bank's lending products, including sample of loans for review. Ultimately, it enables mortgage loans. The mapping integrates demous to match minority and nonminority pairs of graphic information for the bank's local commuapplicants with similar credit characteristics, but nity. We believe that this type of analysis and different loan outcomes, for a more intensive fair presentation will enhance our ability to assess a lending review than would otherwise be possible bank's CRA performance in meeting the credit for the examiner to make. Once the pairs are needs of its local community, including minority selected, examiners reexamine the credit files for areas. The mapping should also be helpful in the individual applicants to determine if discrim- evaluating a bank's geographic delineation of its ination may have played a part in reaching dif- local CRA service area to ensure that it does not ferent outcomes. Our field tests of this "regres- exclude low- and moderate-income neighborsion analysis" program have demonstrated its hoods. promise. We are working to refine the model, As you know, at President Clinton's behest, reduce the level of examiner resources that have the financial regulatory agencies are also curbeen needed in some examinations, and imple- rently at work revising the regulations that imment the program throughout the Federal Re- plement the Community Reinvestment Act. One serve examination system. Although such com- of our main goals with CRA reform is to make the parisons of minority and majority applicants standards used to judge lenders' performance have always been a part of the Federal Reserve's more clear and objective. We are also trying to fair lending examination, we believe that this make sure that unwarranted paperwork and uncomputerized selection process will enable ex- necessary regulatory burden are eliminated and aminers to better focus their efforts and spend that the focus of our efforts is clearly placed on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 1994 the lending results achieved. The CRA obligates their lending operations, from the hiring of loan financial institutions to ensure that they are help- officers to the treatment and evaluation of appliing to meet the credit needs of their entire cants, to ensure that loan decisions are not made community, including low- and moderate-income on the basis of race or ethnicity. The publication areas. They cannot effectively meet this standard has been widely distributed, with more than under the CRA if they discriminate against some 50,000 copies in circulation. In an effort to reach segment of their community in making loans. It is even more people with the information in Closing our hope that reforming and strengthening the the Gap, the Reserve Banks of Boston, Chicago, administration of CRA will result in greater in- and San Francisco are developing a videotape vestment in communities that may have suffered patterned on the pamphlet for use by banks in from disinvestment and discrimination. their in-house fair lending training. We hope that The Federal Reserve's consumer complaint the training tape will be available for use in early program is another element in our overall effort 1994. We have also published a brochure entitled to enforce fair lending laws. Our procedures Home Mortgages: Understanding the Process provide special guidance for investigating com- and Your Right to Fair Lending to inform conplaints alleging loan discrimination. Such com- sumers about the mortgage application process plaints can prompt an on-site investigation by and about their rights under fair lending and Reserve Bank personnel at the state member consumer protection laws. bank accused of discrimination. We also have a Several public notices by the financial regulareferral agreement with HUD for mortgage com- tory agencies recently also have stressed the plaints and have sent a number of complaints to need for financial institutions to provide credit on them for investigation. As in our examinations a nondiscriminatory basis. For example, the joint area, we are devoting considerable attention to statements on credit availability discussed equal strengthening our complaint processing system credit lending obligations. Also, a recent letter by increasing oversight, tightening deadlines for from Chairman Greenspan and the heads of the investigation, ensuring more personal contact other supervisory agencies to the chief executive with complainants, and making the public more officers of all financial institutions stressed the aware of our procedures. importance of compliance with fair lending laws, Public education also plays a role in our fair and it provided guidance on how each institution lending enforcement. We have distributed a pam- could improve its performance. plet entitled Home Mortgage Lending and Equal One suggestion, which the letter recommended Treatment, A Guide for Financial Institutions to as a useful way to minimize the opportunity for all the institutions we supervise. It identifies bias in the evaluation of loan applications, is the lending standards and practices that may pro- so-called "second review" procedure. This produce unintended discriminatory effects, and it cedure was suggested to address a concern raised cautions lenders about their use. The pamphlet by the Federal Reserve Bank of Boston study, focuses on race and includes examples of subtle which indicated that among marginally qualified forms of discrimination, such as unduly conser- applicants, white applicants were more likely to vative appraisal practices in changing neighbor- benefit from a lender's discretion in approving hoods; property standards such as size and age loans than black or Hispanic applicants. A secthat may exclude homes in older neighborhoods; ond review would involve a financial institution's and unrealistically high minimum-loan amounts. simply taking a second look at all the applications More recently, a comprehensive booklet was it expects to deny, as well as some loan approvpublished and widely circulated by the Federal als, to ensure that its existing credit standards Reserve Bank of Boston, entitled Closing The were applied fully and fairly. We understand that Gap: A Guide To Equal Opportunity Lending. the procedure provides lenders with greater com- This significant and informative pamphlet is de- fort that they have made credit decisions in an signed to straightforwardly address lending dis- unbiased manner. It can serve as another useful crimination and what can be done to avoid it. It tool for lenders, suggesting adjustments in instichallenges lenders to reconsider every aspect of tutional behavior to correct racially disparate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 19 loan practices that may be occurring despite the grams sponsor or cosponsor about a hundred institution's policies to the contrary. It also programs a year, involving thousands of particishould assure borrowers who are aware of the pants, as a way to encourage economic developprocedure that an institution seeks to treat all ment and ensure fair lending. applicants fairly. The Board believes the goal of ensuring fair access to credit also can be advanced by focusing CONCLUSION on positive actions that a lender may take. Through our Community Affairs program, the The 1992 national HMDA data continue to show, Federal Reserve conducts outreach and provides like the data in preceding years, relatively high educational and technical assistance to help fi- rates of denial of home mortgage applications for nancial institutions and the public understand minorities. They remain a troubling cause for and address community development and rein- concern about racial discrimination in mortgage vestment issues. We have increased resources to lending. For us and for the other regulatory Community Affairs activities at the Reserve agencies, the data provide a starting point for Banks—now staffed with more than fifty peo- in-depth analyses of the mortgage lending pracple—to enable the Federal Reserve System to tices of individual institutions. We are engaged in respond to the growing number of requests for an aggressive effort in our fair lending examinainformation and assistance from banks and oth- tions to identify any violations of the fair lending ers on the Community Reinvestment Act, fair laws for corrective action, referral to the Departlending, and community development topics. Ef- ment of Justice, or both. forts have been expanded to work with financial Fairness in assessing credit applications, withinstitutions, banking associations, governmental out regard to race, sex, or other prohibited bases, entities, businesses, and community groups to is absolutely critical to our nation's well-being. develop community lending programs that help Let there be no misunderstanding on that point. finance affordable housing, small and minority Racial discrimination cannot and will not be business, and other revitalization projects. Over- tolerated. We are committed to its elimination to all, the Reserve Bank's Community Affairs pro- the best of our ability. • Statement by John P. LaWare, Member, Board would be required to submit to the Congress of Governors of the Federal Reserve System, every two years a report identifying those counbefore the Subcommittee on International Devel- tries that do not offer national treatment to U.S. opment, Finance, Trade and Monetary Policy of banks or securities firms. In the case of a country the Committee on Banking, Finance and Urban in which failure to accord national treatment is Affairs, U.S. House of Representatives, Novem- found to have a significant adverse effect on U.S. ber 9, 1993 firms, the Secretary of the Treasury must, in general, enter into negotiations with the country I appreciate the opportunity to present the views to end the discrimination. The Secretary may, at of the Federal Reserve Board on the proposed his discretion, publish in the Federal Register a legislation on Fair Trade in Financial Services determination that a country does not give na- (H.R.3248). Given our direct responsibilities tional treatment; if he does so, regulatory agenwith respect to the financial services industry and cies would have discretionary authority to use our desire to ensure a healthy and efficient envi- such a determination as a basis for denying ronment for the provision of financial services, applications by financial institutions from that the Federal Reserve has a special interest in this country to make acquisitions or start new activlegislation. ities. The proposed legislation has two major ele- Second, if the Secretary of the Treasury has ments. First, the Secretary of the Treasury published in the Federal Register such a deter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Federal Reserve Bulletin • January 1994 mination with respect to a country, institutions U.S. policy of national treatment—which has from that country that are already operating in long set an example to others—seeks to ensure the United States may not commence "any new that foreign and domestic banks have a fair and line of business" or conduct business from a equal opportunity to participate in our markets. "new location" without obtaining prior approval The motivation is not merely a commitment to from the appropriate federal regulators. This equity and nondiscrimination, although such a provision would appear to apply to new U.S. commitment in itself is worthy. More fundamenactivities or U.S. offices for which no approval is tally, the motivation is also to provide consumers currently required for either domestic or foreign of financial services with access to a deep, varbanks. For example, a foreign-owned U.S. bank ied, competitive, and efficient banking market in may decide to begin to offer consumer mortgage which they can satisfy their financial needs on lending or investment advisory services. Cur- the best possible terms. rently, no application for regulatory approval is As the Federal Reserve has previously noted required. However, under the proposed legisla- in connection with this proposed legislation, our tion such activities would appear to constitute policy of national treatment has served this coun- "new lines of business" requiring regulatory try well. The U.S. banking market, and U.S. approval. financial markets more generally, are the most Thus, the legislation would change two funda- efficient, most innovative, and most sophistimental principles in our policy toward participa- cated in the world. It is not a coincidence that our tion by foreign financial firms in U.S. markets— markets are also among the most open to foreign national treatment and maintenance of rights competition. Foreign banks, by their presence lawfully acquired, that is, grandfather rights. and with the resources they bring from their Both of these principles are worth preserving. parents, make a significant contribution to our I want to emphasize that the Federal Reserve market and to our economic growth; they enshares the objectives of the proposed legislation. hance the availability and reduce the cost of These objectives are important and their achieve- financial services to U.S. firms and individuals, ment desirable. U.S. financial firms deserve to as well as to U.S. public sector entities. have the same opportunities to conduct opera- The proposed legislation would replace the tions in foreign financial markets as domestic U.S. policy of national treatment with a policy of firms have in those markets. They do not now reciprocal national treatment. Through this leghave those opportunities in all markets. Such fair islation, the United States would be saying that treatment would benefit not just U.S. firms but we are prepared to forgo the benefits of foreign also the host foreign countries themselves and banks' participation in our market if U.S. banks the world financial system in general. were not allowed to compete fully and equitably Although the Federal Reserve shares these abroad. Some might think that having a reciprocimportant objectives, it opposes this kind of ity provision on the books is merely a bargaining legislation, as it has before. In our view, it is not tool, not to be used. But once on the books, the clear that the proposed approach would achieve temptation to impose sanctions becomes real, the objectives, and it could have unfortunate, creating the potential for retaliation and for closunintended consequences. ing rather than opening markets. The principle of national treatment was estab- The Federal Reserve strongly believes that lished as U.S. policy with respect to foreign there are better ways to encourage other counbanks by the International Banking Act of 1978. tries to open their markets. Market forces and Over many years the U.S. government has as- the desire to enhance the functioning of domestic sumed a leadership role in building an interna- financial markets are often the most potent forces tional consensus around this concept. National to induce financial market liberalization. Moretreatment is acknowledged by virtually all major over, it is well understood that any country that industrial countries as the principle upon which wants to have a financial market with sufficient regulation of the international operations of international stature to compete with New York banks ought to be, but is not always, based. The and London must liberalize and open its market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 21 and that any country repressing or restraining its banks, operating in Europe; in the end the EC financial sector will witness an exodus of finan- agreed to preserve those rights. cial firms to other markets that are less re- If, contrary to this widely accepted practice, strained. the Congress were to adopt the proposed legis- Nevertheless, U.S. authorities have not relied lation, the United States could no longer hold to solely on market forces. In 1979, after passage of a principled position in advocating liberalization the International Banking Act, the Treasury De- in international circles. By telling existing forpartment, with the help of the Federal Reserve eign-owned banks in the United States that the and other agencies, prepared its first National rules and procedures that have applied equally to Treatment study; this study has been updated them and to all other banks operating in the several times, most recently in 1990, and we have United states now apply only to U.S.-owned begun the process of another update. Pursuant to banks, we would be denying national treatment the Omnibus Trade and Competitiveness Act of to foreign banks. This could be counterproduc- 1988, updated studies will be prepared regularly tive. We would run the risk of introducing instain the future. Based on the findings of those bility and discouraging foreign investment in our reports, the Treasury has engaged formally—and markets. Moreover, market access for U.S. firms others informally—in bilateral talks with several might be reduced de facto as countries tighten countries. their own regulations in anticipation of the need Beyond those efforts, the Federal Reserve and to negotiate with the United States. others urged countries of the European Commu- We should remember that we have witnessed nity (EC) strongly and with some success to substantial liberalization and structural reform in modify and soften the reciprocity provisions in financial markets abroad over the past decade. their proposed Second Banking Directive. We Like members of the Congress, we too would have participated in a range of committees at the like to see more progress. But it is easy to Bank for International Settlements in Basle and understate the extent to which progress has been at the Organization for Economic Cooperation made in opening up foreign markets as a conseand Development in Paris, where work has been quence of both the inexorable pressure of market aimed, in part, at establishing the legal, supervi- forces and the diplomatic efforts of U.S. officials. sory, and regulatory conditions that are a precon- Many countries are already open to U.S. firms to dition for ensuring a "level playing field." In an extent that was not true just several years ago. addition, the Federal Reserve has joined others For example, deregulation of interest rates in in the U.S. government in working to reach a Japan is now, or soon will be, largely complete, meaningful agreement on trade in financial ser- and a wide range of market instruments has been vices within the North American Free Trade developed. These reforms, which had been a Agreement and the current Uruguay round of principal objective of U.S. negotiators, provide multilateral trade negotiations. We believe that U.S. financial firms with a level playing field with this approach, which has the same objective as respect to funding in Japanese markets. the proposed legislation, is more constructive. I turn now to grandfathering, a practice widely accepted internationally as a means of protecting investment in existing foreign banking operations CONCLUSION at a time of statutory change. Operations of foreign banks in the United States were grandfa- National treatment is an important concept, but in thered in the International Banking Act. With its implementation it is also an elusive one. Berespect to foreign operations of U.S. banks, the cause it is enormously difficult to apply national Federal Reserve, along with others in the U.S. treatment in a world in which the structures of government and the U.S. financial industry, ob- banking markets in various countries differ signifjected strenuously when the European Commu- icantly, it is tempting to seek what may appear to nity was considering the elimination of grandfa- be direct, clear-cut solutions. However, lawmakther rights for foreign banks, including U.S. ers in each country, including the United States, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1994 must balance considerations of competitive equity The desirability of liberalization as an objecwith other legitimate concerns. tive in the financial sector, as in other sectors, is We should remember that financial markets are virtually universally accepted. U.S. financial regulated markets. They are regulated for a rea- firms have demonstrated their competitive abilson: Authorities in each country have the respon- ity to provide financial services to firms and sibility of ensuring the safety and soundness, and residents of all countries, in a world in which the integrity, of their markets. We should hesitate national financial markets are increasingly to dictate to others the pace of change or the integrated and international flows of capital specific nature of change any more than others are increasingly hard to constrain. To be sure, should be allowed to dictate to us regarding such other countries have provisions for recimatters. We must recognize that U.S. markets are procity in their statutes, but we do not need it. not as open as other countries would like and that The United States alone has the opportunity to many of the kinds of complaints lodged by us continue to exercise leadership in this area. I regarding the structure of other countries' mar- sincerely hope we take that opportunity. • kets are also lodged against us. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

23 Announcements RESPONSE TO PROPOSALS TO RESTRUCTURE $103.6 million, an increase of $11.8 million, or THE BANKING SUPERVISORY AGENCIES 12.8 percent, from the $91.4 million targeted for 1993. The Federal Reserve Board issued on November The PSAF is an allowance for the taxes that 23, 1993, the following statement in response to would have been paid and the return on capital that questions about proposals to restructure the bank- would have been provided had the Federal Reing supervisory agencies: serve's priced services been provided by a private firm. It is the long-held conviction of the Board that a hands-on role in banking supervision is essential to carrying out the Federal Reserve's respon- APPROVAL OF VOLUME-BASED PRICING FOR sibilities for the stability of the financial system CERTAIN SERVICES AND PRODUCTS and is vital for the effective conduct of monetary OFFERED BY THE FEDERAL RESERVE BANKS policy. While the Board recognizes the overlaps OF RICHMOND AND MINNEAPOLIS in bank supervision that have emerged in recent years, it is essential that any proposal for change The Federal Reserve Board announced on Novempreserves the important benefits of the current ber 15, 1993, approval of volume-based pricing for system. the noncash collection services and for selected check products offered by the Federal Reserve Banks of Richmond and Minneapolis, effective AVAILABILITY OF FEE SCHEDULES FOR January 3, 1994. SERVICES PROVIDED BY THE The volume-based pricing will accomplish the FEDERAL RESERVE BANKS following: • Set volume-based cash letter and coupon enve- The Federal Reserve Board announced on Novemlope fees for the noncash collection services ber 15, 1993, the 1994 fee schedules for services • Permit the Minneapolis Reserve Bank and the provided by the Federal Reserve Banks. The fees Richmond Federal Reserve District to set volumebecame effective January 3, 1994. based fees for selected check products. The fee schedules apply to check collection, automated clearinghouse activities, funds transfer The specific noncash collection and check fees and net settlement, book-entry securities, noncash appear in the 1994 fee schedules for priced sercollection, special cash services, and electronic vices, which are available from the Reserve Banks. connections to the Federal Reserve. The 1994 fee schedules are available from the Reserve Banks. In 1994, total costs for priced services, including INCREASE IN THE NET TRANSACTION float, a portion of special project costs, and the ACCOUNTS TO WHICH A 3 PERCENT private sector adjustment factor (PSAF), are pro- RESERVE REQUIREMENT APPLIES jected to be $745.5 million. Total revenue is projected to be $774.4 million, resulting in net income The Federal Reserve Board announced on Novemof $20.2 million, compared with a targeted return ber 19, 1993, an increase from $46.8 million to on equity of $34.6 million. $51.9 million in the net transaction accounts to At the same time, the Board approved the 1994 which a 3 percent reserve requirement will apply in PSAF for priced services of the Reserve Banks of 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1994 The Board also changed from $3.8 million to under the Board's Regulatory Planning and Review $4.0 million the amount of reservable liabilities of program. Comments were requested by January 24, each depository institution that is subject to a 1994. reserve requirement of 0 percent. The Board on November 23, 1993, issued for Additionally, the Board maintained at $44.8 mil- public comment proposed amendments to its Regulion the deposit cutoff level that is used in conjunc- lation DD (Truth in Savings). Comments were tion with the reservable liabilities exemption requested by January 13, 1994. amount to determine the frequency of deposit The Board published for public comment on reporting. November 29, 1993, a proposal to expand the Fedwire funds transfer format and adopt a more comprehensive set of data elements. The Board is proposing to implement the new format by APPROVAL OF EXTENSION OF AN late 1996. Comments were requested by March 4, INTERIM PROVISION IN REGULATION O 1994. The Federal Reserve Board announced on November 17, 1993, approval of a ninety-day extension of PUBLICATION OF A REVISION TO THE BANK an interim provision in Regulation O (Loans to HOLDING COMPANY SUPERVISION MANUAL Executive Officers, Directors, and Principal Shareholders of Member Banks) permitting adequately The second 1993 revision of the Bank Holding capitalized small banks to raise their limit on aggre- Company Supervision Manual has been published gate lending to insiders from 100 percent up to by the Board's Division of Banking Supervision 200 percent of unimpaired capital and surplus. The and Regulation and is now available for purchase extension is effective from November 18, 1993, by the public. The Manual is used by Federal through February 18, 1994. Reserve examiners in the supervision, regulation, The extension was made to provide Board staff and inspection of bank holding companies and their with additional time to review public comments on subsidiaries. A copy of the revision is available for whether the interim rule should be made perma- $4.00. nent, modified, or permitted to expire. New topics addressed include split-dollar life insurance policy arrangements, in-substance foreclosures, the returning of nonaccrual loans to PROPOSED ACTIONS accrual status, day-trading and free-riding schemes, new futures commission merchant nonbanking The Federal Reserve Board and other financial activities, and the providing of administrative and institutions regulatory agencies on November 10, certain other nonbanking services to mutual funds. 1993, requested comment on supplemental infor- The Manual and the December 1993 revision mation to the proposed rule on real estate apprais- may be obtained from Publications Services, mail als. Comments were requested by December 10, stop 127, Board of Governors of the Federal 1993. Reserve System, Washington, DC 20551. A copy The Board on November 16, 1993, requested of the Manual and its December 1993 revision public comment on an interagency notice of pro- supplement is available at a cost of $50.00. posed rulemaking prescribing safety and soundness standards required by section 132 of the Federal Deposit Insurance Corporation Improvement Act CHANGE IN BOARD STAFF of 1991 (FDICA). Comments were requested by January 3, 1994. The Federal Reserve Board announced the resigna- The Board on November 17, 1993, requested tion of Ellen Maland, Assistant Secretary in the public comment on an advance notice of proposed Office of the Secretary, effective November 29, rulemaking on Regulation M (Consumer Leasing) 1993. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

25 Minutes of the Federal Open Market Committee Meeting of September 21, 1993 A meeting of the Federal Open Market Committee Mr. Madigan, Associate Director, Division of was held in the offices of the Board of Gov- Monetary Affairs, Board of Governors Mr. Stockton, Associate Director, Division of ernors of the Federal Reserve System in Washing- Research and Statistics, Board of Governors ton, D.C., on Tuesday, September 21, 1993, at Ms. Low, Open Market Secretariat Assistant, 9:00 a.m. Division of Monetary Affairs, Board of Governors Present: Mr. Greenspan, Chairman Ms. Browne, Messrs. T. Davis, Dewald, and Mr. McDonough, Vice Chairman Goodfriend, Senior Vice Presidents, Federal Mr. Angell Reserve Banks of Boston, Kansas City, Mr. Boehne St. Louis, and Richmond respectively Mr. Keehn Mr. Kelley Messrs. Judd, King, and Ms. White, Vice Mr. LaWare Presidents, Federal Reserve Banks of Mr. Lindsey San Francisco, Atlanta, and New York Mr. McTeer respectively Mr. Mullins Ms. Phillips Mr. Gavin, Assistant Vice President, Federal Mr. Stern Reserve Bank of Cleveland Ms. Krieger, Manager, Open Market Operations, Messrs. Broaddus, Jordan, Forrestal, and Parry, Federal Reserve Bank of New York Alternate Members of the Federal Open Market Committee By unanimous vote, the minutes for the meeting Messrs. Hoenig, Melzer, and Syron, Presidents of the Federal Open Market Committee held on of the Federal Reserve Banks of Kansas City, August 17, 1993, were approved. St. Louis, and Boston respectively By unanimous vote, Joan E. Lovett and Peter R. Mr. Kohn, Secretary and Economist Fisher were selected to serve at the pleasure of Mr. Bernard, Deputy Secretary the Committee in the capacities of Manager for Mr. Coyne, Assistant Secretary Domestic Operations, System Open Market Mr. Gillum, Assistant Secretary Account, and Manager for Foreign Operations, Mr. Mattingly, General Counsel System Open Market Account respectively, on the Mr. Patrikis, Deputy General Counsel Mr. Prell, Economist understanding that their selection was subject to Mr. Truman, Economist their being satisfactory to the Federal Reserve Bank of New York. Messrs. R. Davis, Lang, Lindsey, Promisel, Rolnick, Rosenblum, Scheld, Siegman, Secretary's Note: Advice subsequently was received Simpson, and Slifman, Associate Economists that the selections indicated above were satisfactory to the Federal Reserve Bank of New York. Mr. Fisher, Manager for Foreign Operations, System Open Market Account The Manager for Foreign Operations reported on Mr. Ettin, Deputy Director, Division of Research developments in foreign exchange markets and on and Statistics, Board of Governors System transactions in foreign currencies during Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1994 the period August 17, 1993, through September 20, accounted for the increase, as strikes damped min- 1993. By unanimous vote, the Committee ratified ing production and utilities output was unchanged these transactions. following large gains in earlier months. Within Ms. Betsy B. White, Vice President for Domes- manufacturing, the output of motor vehicles and tic Operations of the Federal Reserve Bank of New parts was unchanged. Excluding the motor vehicle York, reported on developments in domestic finan- component, another sharp gain in computers and cial markets and on System open market transac- related electronic components boosted the productions in government securities and federal agency tion of business equipment, while the output of obligations during the period August 17, 1993, consumer goods declined as a result of a retrenchthrough September 20, 1993. By unanimous vote, ment in appliance production following the the Committee ratified these transactions. advance posted in July. Total utilization of manu- The Committee then turned to a discussion of the facturing capacity edged up again in August. economic and financial outlook and the formula- Total retail sales were little changed in real terms tion of monetary policy for the intermeeting period in July and August. Despite the recent sluggishahead. A summary of the economic and financial ness, however, real spending for goods in July and information available at the time of the meeting August was appreciably above the level in the and of the Committee's discussion is provided second quarter. In addition, real expenditures for below, followed by the domestic policy directive services had grown rapidly in July; this reflected that was approved by the Committee and issued to both high energy consumption associated with unthe Federal Reserve Bank of New York. usually hot weather and robust spending for other The information reviewed by the Committee services. The persistence of hot weather through at this meeting suggested that economic activity, August suggested that spending on energy services adjusted for the temporary depressing effects of the continued at a high level for that month. After a flood in the Midwest, was continuing to expand at a slight decline in July, housing starts rose substanmoderate pace. Consumer spending was up, and tially in August. Single-family starts accounted for business purchases of durable equipment had all of the August increase, as multifamily starts fell recorded further healthy gains. On the other hand, further and continued to hover around their thirtyhousing activity had shown a muted response to the year low. declines in mortgage rates that had occurred Growth in real business fixed investment through the spring, and gains in manufacturing appeared to be slowing in the third quarter from the output and in employment had been limited in robust pace earlier in the year. Shipments of nonrecent months. After rising at an accelerated rate in defense capital goods dropped substantially in July, the early part of the year, consumer prices had with all of the decline occurring in the volatile increased more slowly in recent months and pro- aircraft component. For capital goods other than ducer prices had fallen. aircraft and parts, shipments again moved higher in Total nonfarm payroll employment edged lower July; while the demand for computing equipment in August after a sizable gain in July. Hiring in the strengthened after dropping off somewhat in the service-producing sectors, especially in health and second quarter, shipments of other types of durable business services, was down in August from the equipment softened. In addition, heavy-truck sales pace of recent months, and more jobs were lost in were off substantially in July after advancing manufacturing. Construction employment also steadily since late 1992, and fleet sales of light moved lower, retracing part of the July increase. vehicles were down in July and August. Investment On the other hand, the average workweek rose to a in nonresidential structures posted its largest relatively high level in August, and as a result, advance in three years in the second quarter. Howaggregate hours worked by production or nonsuper- ever, construction activity fell in July in reflection visory workers were significantly above the of a sharp decline in the construction of commersecond-quarter average. The civilian unemploy- cial structures other than offices. ment rate declined to 6.7 percent. Business inventories contracted sharply in July Industrial production posted a further moderate after changing little in June. The bulk of the July gain in August. Manufacturing output more than decline occurred in the retail sector and reflected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 27 drawdowns in inventories at automobile dealer- nonsupervisory workers were up in August after ships. Non-auto retail inventories edged down in little change on balance in June and July; the rise July; with sales flat, the ratio of non-auto inven- reflected in part overtime earnings in manufacturtories to sales remained near the high end of the ing. Over the twelve months ended in August, this range for the past several years. In the wholesale measure of earnings increased by about the same trade sector, stocks were trimmed somewhat amount as in the previous twelve-month period. further in July, but the inventory-to-sales ratio At its meeting on August 17, 1993, the Commitremained at the midpoint of its range over the past tee adopted a directive that called for maintaining three years. Manufacturing stocks were unchanged the existing degree of pressure on reserve positions in July after a small reduction in June. With ship- and that, in contrast to the two previous directives, ments down in July owing to weak shipments of did not include a tilt toward possible firming of aircraft and motor vehicles, the stocks-to-sales ratio reserve conditions during the intermeeting period. rebounded but was still at a low level. Accordingly, the directive indicated that in the The nominal U.S. merchandise trade deficit context of the Committee's long-run objectives for decreased in July, but it remained essentially price stability and sustainable economic growth, unchanged from its average rate in the second and giving careful consideration to economic, quarter. The value of exports edged lower in July, financial, and monetary developments, slightly while the value of imports fell by more, retracing greater reserve restraint or slightly lesser reserve nearly all of the sizable June rise. The decline in restraint might be acceptable during the intermeetimports was primarily in automotive products, con- ing period. The reserve conditions associated with sumer goods, and oil. The performance of the this directive were expected to be consistent with major foreign industrial economies continued to modest growth of M2 and little net change in M3 present a mixed picture. Economic activity in over the balance of the third quarter. Japan, after increasing slightly in the first quarter, Open market operations were directed during the evidenced renewed weakness in the second quarter intermeeting period toward maintaining the existthat apparently persisted into the third quarter. In ing degree of pressure on reserve positions. The western Germany, real output rose in the second federal funds rate remained close to 3 percent over quarter, but much of the gain apparently stemmed the period, while adjustment plus seasonal borrowfrom unintended inventory accumulation. In France ing averaged somewhat above anticipated levels, and Italy, economic activity appeared to have reflecting demand for adjustment credit by banks leveled out in the second quarter after declining experiencing temporary technnical difficulties. earlier. By contrast, both the United Kingdom and Other short-term interest rates were little Canada recorded further modest gains in economic changed on balance over the intermeeting period, activity. while yields on intermediate- and long-term debt Producer prices of finished goods fell sharply obligations declined somewhat. The drop in longerfurther in August; higher prices for consumer foods term yields appeared to be associated with incomwere more than offset by lower prices for the ing data indicating continuing sluggishness in ecoenergy and the nonfood, non-energy components nomic activity and the more favorable performance of the index. For finished goods other than food of broad measures of prices. Major indexes of and energy, producer prices increased over the stock prices increased somewhat further over the twelve months ended in August by a considerably intermeeting period, evidently reflecting lower smaller amount than in the previous twelve-month bond yields and heavy inflows to stock mutual period. Consumer prices rose a little faster in funds. August than in July, with an increase in food prices In foreign exchange markets, the trade-weighted counterbalancing a decline in prices of consumer value of the dollar in terms of the other G-10 energy goods. For nonfood, non-energy items, con- currencies depreciated on balance over the intersumer prices advanced over the twelve months meeting period. Much of the dollar's decline ended in August by an amount comparable to that reflected the strength of the mark and other Eurorecorded for the twelve months ended in August pean currencies, which was related in part to the 1992. Average hourly earnings of production or unexpectedly slow pace of monetary easing in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1994 Germany and other European countries. Against that the interpretation of ongoing developments the yen, the dollar rebounded early in the intermeet- presented some unusual problems, notably the diffiing period from the historical low that occurred culty of reconciling the appreciable growth in emaround the time of the Committee's August meet- ployment thus far this year with the slow expansion ing. The dollar was buoyed by joint central bank in measured output; the associated drop in measales of yen against the dollar and by the accompa- sured productivity was especially surprising in nying public statement from the U.S. Treasury that light of the business drive toward more efficient was seen by market participants as signaling a new operations. Moreover, the economic outlook clearly attitude toward any further appreciation of the yen. remained subject to a variety of uncertainties, On September 21, the dollar rose sharply on news including potential developments abroad that were that President Yeltsin had dissolved the Russian especially difficult to predict. Nonetheless, while Parliament. temporary factors were likely to depress third- Growth of M2 continued at a slow rate in quarter expansion, the members saw little in the August. The sluggishness in this aggregate, which current statistical or anecdotal reports on the occurred despite further rapid expansion in its Ml domestic economy that pointed to the likelihood of component, apparently reflected ongoing efforts by a significant deviation from a moderate growth households to shift funds away from depository trend. It was noted in this connection that the accounts in search of better returns. M3 turned up inhibiting effects of increased fiscal restraint and after declining in June and July; however, expan- expected further weakness in net exports needed to sion of this aggregate continued to be held down by be weighed against the favorable effects on interestdeclines in institution-only money market funds. sensitive spending of considerably reduced For the year through August, M2 and M3 were intermediate- and long-term interest rates and the estimated to have grown at rates close to the lower much improved financial condition of many busiends of the Committee's ranges for the year. Total ness firms and households. With regard to the domestic nonfinancial debt had expanded moder- outlook for inflation, some members suggested that ately in recent months, and for the year through the prospects for continued slack in resource utili- July it was estimated to have increased at a rate zation were consistent with a disinflationary trend, in the lower half of the Committee's monitoring but the disparate factors bearing on the outlook for range. inflation as well as the swings in price performance The staff projection prepared for this meeting experienced in recent quarters argued for caution in suggested moderate growth in economic activity assessing the future course of inflation. and limited reductions in margins of unemployed In their review of developments around the labor and capital through next year. Fiscal restraint, nation, members commented that business condiuncertainty about other government policies, and tions remained uneven across local areas and indusslow growth of foreign industrial economies over tries, but they characterized general economic the near term would act as a constraint on the activity in most regions as ranging from little economy. However, improving balance-sheet posi- change to moderate growth since midsummer. tions and credit supply conditions were lifting an However, business conditions continued to be quite unusual constraint on spending, and the lower inter- weak in some areas, notably in California, and est rates would encourage further increases in con- business sentiment appeared to have remained causumer spending, housing construction, and busi- tious in much of the nation. One member emphaness fixed investment. The continued slack in labor sized uneven conditions of a different kind. Relaand product markets, coupled with some tempering tively disadvantaged members of the population, of inflation expectations, was expected to foster often living in inner cities, had high and rising further reductions in wage and price inflation. expectations about their economic prospects. At In the Committee's discussion of current and the same time, however, some traditional paths of prospective economic conditions, members com- upward mobility were being cut back, such as the mented that recent developments had not altered military and civil service within the government their outlook for moderate and sustained expansion and office jobs more generally. In addition, regulain economic activity. The members acknowledged tions aimed at correcting some problems in finan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 29 cial institutions—such as real estate appraisal and in the case of many consumers with higher downpayment requirements—were having unin- incomes, increased income tax liabilities. Some tended adverse effects on lower-income businesses members expressed the view that more vigorous and households, and other proposals aimed at pro- growth in employment might well occur as the moting minority lending were in danger of promis- expansion matured, and such a development would ing more than they could deliver. An apparently be likely to have a favorable effect on consumer widening gap between economic realities and aspi- attitudes and spending. rations might not have measurable implications for Cautious attitudes also appeared to have held the macroeconomic outlook over short periods of back housing demand and construction activity time, but they reflected a worrisome trend in terms despite declines in mortgage interest rates. The of the longer-run health of the economy. combination of some further declines in mortgage In other comments, members referred to a num- interest rates recently and a tendency for house ber of financial developments that had favorable prices to stabilize or even to firm in some markets implications for sustained economic expansion. seemed to have induced appreciable and wide- Business firms and consumers had made substan- spread strengthening in demand for single-family tial progress in strengthening their balance sheets, housing. Indeed, despite persisting weakness in and while the process of adjusting balance sheets some areas, housing markets were described as evidently was still under way, the material im- quite strong in many parts of the country, and the provement accomplished thus far had diminished overall improvement in housing activity might not financial risks and constraints on spending. Bank- be captured in the latest statistics. Other construcing institutions had bolstered their capital positions tion activity appeared on the whole to have botand were in a better position to accommodate tomed out and might have begun to trend higher. increases in loan demand. Bond and stock markets Anecdotal reports suggested a pickup in the volhad exhibited considerable strength. In this connec- ume of commercial property transactions, though tion, however, a few members commented on the apparently not yet in the prices of commercial apparently growing concern in financial markets properties in most areas, and rising construction that current equity prices were high relative to outlays were anticipated for commercial, industrial, earnings and dividends. A correction in U.S. equity and institutional facilities as economic activity conmarkets could trigger cumulative selling, espe- tinued to expand. Office construction was likely to cially by mutual funds, which had garnered sub- remain generally depressed as excess capacity constantial new investors, some of whom might not tinued to be absorbed, but such construction might fully appreciate the risks of their new assets rela- not decline further. Members also anticipated tive to deposits. On the positive side, there were appreciable further growth in business spending for good reasons for optimism on the trajectory of equipment, notably for the purpose of enhancing business profits in an environment of low inflation productivity in an environment of strong competiand moderate growth. Moreover, some managers of tive pressures; concurrently, spending to expand mutual funds reportedly were taking steps to capacity seemed likely to remain relatively limited strengthen the liquidity of their portfolios, and unless consumer spending gathered more momenmembers reported on efforts to improve indi- tum in coming quarters than was now anticipated. vidual investor awareness of the risks of equity On balance, business fixed investment was investments. expected to continue to provide considerable sup- During their review of the prospective perfor- port to the economic expansion. mance of key sectors of the economy, members The passage of deficit-reduction legislation in gave somewhat mixed reports on retail sales in July implied increased fiscal restraint but also recent weeks, but they generally anticipated that appeared to have improved confidence in financial consumer spending would provide continued if not markets and in the business community more genstrong support to sustained economic expansion. erally regarding the ability of the federal govern- As had been true for an extended period, consumer ment to enact needed legislation. At the same time, attitudes remained hesitant in the context of con- the new taxes stemming from that legislation and a cerns about employment and income prospects and, greater focus on the potential for further legisla- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Federal Reserve Bulletin • January 1994 tion, notably health care reform and its implica- On balance, these developments were not seen as tions for mandated business costs, were a key fac- inconsistent with longer-run progress toward price tor in sustaining cautious attitudes among business stability, though the inflation outlook remained subexecutives. Members also referred to the con- ject to considerable uncertainty. straining effects in many areas, and on the econ- In the Committee's discussion of policy for the omy more generally, of current and prospective intermeeting period ahead, all of the members cutbacks in defense expenditures, spending curbs agreed that recent economic and financial developby state and local governments, and the outlook ments pointed to the desirability of an unchanged for further tax increases by many of these policy stance. The members recognized that neither governments. the pace of the economic expansion nor the uncer- The prospects for net exports also were cited as a tain progress toward price stability reflected a negative factor in the economic outlook. Expecta- wholly satisfactory economic performance, but at tions of persisting weakness in some major foreign this point the present posture of monetary policy economies implied relatively limited growth in U.S. continued to offer the best promise in their view of exports in a period when moderate expansion in promoting sustained economic growth in the conthis country was likely to foster somewhat more text of subdued if not declining inflation. rapid increases in U.S. imports. Some members From the perspective of a variety of financial also commented that the controversial NAFTA leg- measures, the current monetary policy continued to islation under consideration in the Congress contin- be quite accommodative. Short-term interest rates ued to dominate business discussions in parts of the were low, indeed close to zero after adjustment for country. It was suggested that whatever its eventual inflation, and there had been appreciable further benefits for the three nations immediately involved declines in longer-term interest rates. Growth of might be, a defeat of that legislation could prove to M2 remained slow, but it had picked up since be a setback for the GATT negotiations with disloc- earlier in the year, and M3 had expanded in ative implications for world trade. August, albeit at a sluggish rate, after declining in Many members referred to the more favorable previous months. One member observed that price developments that had occurred since the growth in M2, adjusted to include certain stock and early part of the year when key measures of infla- bond mutual funds, was estimated to have accelertion had surged. While it was premature to con- ated since early spring to a fairly healthy pace. clude that a distinct disinflationary trend had been Narrow measures of money and reserves, though reestablished, the members generally agreed that subject to a variety of influences, were growing at price pressures were likely to remain subdued given rates that suggested an ample provision of liquidity their projections of some continuing slack in to the economy. resource utilization. Favorable developments tend- In considering possible adjustments to policy ing to support that conclusion included the persis- during the intermeeting period, all of the members tence of intensely competitive conditions in most endorsed a proposal to retain a symmetrical direcmarkets for goods around the country. The costs of tive. While current economic uncertainties were materials purchased by business firms generally mirrored in uncertainties about the future course of were reported to be rising only slowly, if at all. monetary policy, the members agreed that develop- There were indications of fairly tight labor markets ments in the period until the next meeting in in some areas, but wage pressures remained limited mid-November were not likely to call for any even in those markets. At the same time, the costs adjustment to policy. Beyond the nearer term, of worker benefits continued to rise fairly rapidly however, both the timing and, in the view of at and many business contacts were expressing con- least some members, the direction of the next polcern about the possibility of further mandated cost icy change could not be foreseen at this time. increases related to the health care reform legisla- While they did not see convincing evidence that tion. For the next several months, relatively rapid monetary policy was overly stimulative at this increases in food prices associated with weather- point, some members were concerned that the currelated crop losses and an increase in the excise tax rent stance, as reflected in short-term interest rates, on gasoline would tend to boost consumer prices. was quite accommodative and probably would need Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 31 to be firmed at some point. These members stressed part of the year, consumer prices have increased the need to remain especially alert to potential more slowly and producer prices have fallen in recent months. inflationary developments against the back- Short-term interest rates have changed little since the ground of persisting inflationary expectations and Committee meeting on August 17, while yields on interuncertain progress toward price stability. Other mediate and long-term debt obligations have declined members, while sharing this concern to an extent, somewhat. In foreign exchange markets, the tradegave some weight to the possibility that the expan- weighted value of the dollar in terms of the other G-10 currencies depreciated substantially over the intermeetsion might remain quite sluggish for a period; ing period. under the circumstances, they foresaw the need to M2 continued to expand at a slow rate in August, maintain an accommodative policy posture and while M3 turned up after declining in June and July. For could not rule out the possibility that the next the year through August, M2 and M3 are estimated to policy move might have to be toward greater mon- have grown at rates close to the lower end of the Committee's ranges for the year. Total domestic nonfinancial etary stimulus. debt has expanded at a moderate rate in recent months, At the conclusion of the Committee's discussion, and for the year through July it is estimated to have all the members indicated their support of a direc- increased at a rate in the lower half of the Committee's tive that called for maintaining the existing degree monitoring range. of pressure on reserve positions and that did not The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability include a presumption about the likely direction of and promote sustainable growth in output. In furtherance any adjustment to policy during the intermeeting of these objectives, the Committee at its meeting in July period. Accordingly, in the context of the Commit- lowered the ranges it had established in February for tee's long-run objectives for price stability and growth of M2 and M3 to ranges of 1 to 5 percent and sustainable economic growth, and giving careful 0 to 4 percent respectively, measured from the fourth quarter of 1992 to the fourth quarter of 1993. The consideration to economic, financial, and monetary Committee anticipated that developments contributing to developments, the Committee decided that slightly unusual velocity increases would persist over the balgreater or slightly lesser reserve restraint might be ance of the year and that money growth within these acceptable during the intermeeting period. Accord- lower ranges would be consistent with its broad policy ing to a staff analysis, the reserve conditions con- objectives. The monitoring range for growth of total domestic nonfinancial debt also was lowered to 4 to templated at this meeting were expected to be 8 percent for the year. For 1994, the Committee agreed consistent with modest growth in M2 and M3 over on tentative ranges for monetary growth, measured from the balance of the year. the fourth quarter of 1993 to the fourth quarter of 1994, At the conclusion of the meeting, the Federal of 1 to 5 percent for M2 and 0 to 4 percent for M3. The Committee provisionally set the monitoring range for Reserve Bank of New York was authorized and growth of total domestic nonfinancial debt at 4 to 8 perdirected, until instructed otherwise by the Commitcent for 1994. The behavior of the monetary aggregates tee, to execute transactions in the System account will continue to be evaluated in the light of progress in accordance with the following domestic policy toward price level stability, movements in their velocidirective: ties, and developments in the economy and financial markets. The information reviewed at this meeting suggests In the implementation of policy for the immediate that economic activity is continuing to expand at a future, the Committee seeks to maintain the existing moderate pace. Total nonfarm payroll employment degree of pressure on reserve positions. In the context of edged down in August after a sizable gain in July, but the Committee's long-run objectives for price stability the average workweek rose to a relatively high level and and sustainable economic growth, and giving careful the civilian unemployment rate declined to 6.7 percent. consideration to economic, financial, and monetary Industrial production has advanced moderately over developments, slightly greater reserve restraint or recent months. Retail sales changed little in real terms slightly lesser reserve restraint might be acceptable in in July and August after increasing appreciably in the the intermeeting period. The contemplated reserve consecond quarter. Housing starts were down slightly in ditions are expected to be consistent with modest growth July but rose substantially in August. Available indica- in M2 and M3 over the balance of the year. tors suggest a slowing in the expansion of business capital spending from a robust pace earlier in the year. Votes for this action: Messrs. Greenspan, McDon- The nominal U.S. merchandise trade deficit was about ough, Angell, Boehne, Keehn, Kelley, LaWare, Lindunchanged in July from its average rate in the second sey, McTeer, Mullins, Ms. Phillips, and Mr. Stern. quarter. After rising at an accelerated rate in the early Votes against this action: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1994 It was agreed that the next meeting of the Com- tion that unedited transcripts for meetings since mittee would be held on Tuesday, November 16, early 1976 were maintained by the FOMC secretar- 1993. iat at the Board of Governors. The members did The meeting adjourned at 12:35 p.m. not reach any decisions on these matters during During the intermeeting period, available mem- these conferences. In the course of two further bers participated in three telephone conference calls telephone conferences during the intermeeting to discuss issues relating to the release of informa- period, the Committee reviewed economic and tion about discussions at Federal Open Market financial developments affecting Mexico and dis- Committee meetings. These calls were prompted cussed various contingencies that might involve the by hearings on such issues that were held by the Federal Reserve. House Committee on Banking, Finance, and Urban Donald L. Kohn Affairs. The discussions took into account informa- Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

33 Legal Developments FINAL RULE—AMENDMENT TO REGULATION D (2) Exemption from reserve requirements. Each depository institution, Edge or agreement corpora- The Board of Governors is amending 12 C.F.R. Part tion, and U.S. branch or agency of a foreign bank is 204, its Regulation D (Reserve Requirements of Depos- subject to a zero percent reserve requirement on an itory Institutions) to increase the amount of transaction amount of its transaction accounts subject to the low accounts subject to a reserve requirement ratio of three reserve tranche in paragraph (a)(1) of this section percent, as required by section 19(b)(2)(C) of the Fed- not in excess of $4.0 million determined in accoreral Reserve Act, from $46.8 million to $51.9 million of dance with section 204.3(a)(3) of this part. net transaction accounts. This adjustment is known as the low reserve tranche adjustment. The Board has increased from $3.8 million to $4.0 million the amount of reservable liabilities of each depository institution that is subject to a reserve requirement of zero percent. ORDERS ISSUED UNDER BANK HOLDING This action is required by section 19(b)(ll)(B) of the COMPANY ACT Federal Reserve Act, and the adjustment is known as Orders Issued Under Section 3 of the Bank the reservable liabilities exemption adjustment. The Holding Company Act Board is also leaving unchanged at $44.8 million the deposit cutoff level that is used in conjunction with the Bank of Colorado Holding Company reservable liabilities exemption amount to determine Vail, Colorado the frequency of deposit reporting. Effective December 14, 1993, 12 C.F.R. Part 204 is amended as follows: Order Approving Formation of a Bank Holding Company Part 204—Reserve Requirements of Depository Institutions Bank of Colorado Holding Company, Vail, Colorado ("Colorado Holding Company"), has applied under 1. The authority citation for Part 204 is revised to read section 3(a)(1) of the Bank Holding Company Act as follows: ("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, bank holding company by acquiring all the voting 611, and 3105. shares of Vail National Bank, Vail, Colorado ("Bank"). 2. In section 204.9 paragraph (a) is revised to read as Notice of the application, affording interested perfollows: sons an opportunity to submit comments, has been Section 204.9—Reserve requirement ratios. published (58 Federal Register 36,689 (1993)). The time for filing comments has expired, and the Board (a) (1) Reserve percentages. The following reserve has considered the application and all comments reratios are prescribed for all depository institutions, ceived in light of the factors set forth in section 3(c) of Edge and Agreement Corporations, and United the BHC Act. States branches and agencies of foreign banks: Colorado Holding Company is a nonoperating corporation formed for the purpose of becoming a bank holding company through the acquisition of Bank. Bank is the 196th largest commercial banking organi- Category Reserve Requirement zation in Colorado, controlling deposits of approxi- Net transaction accounts1 mately $57 million, representing less than 1 percent of $0 to $51.9 million 3 percent of amount total deposits in commercial banks in the state.1 over $51.9 million $1,437,000 plus 10 percent of amount over $51.9 million Colorado Holding Company and Bank do not com- Nonpersonal time deposits 0 percent pete directly in any banking market. Accordingly, Eurocurrency liabilities 0 percent 1. Dollar amounts do not reflect the adjustment to be made by the next paragraph. 1. State deposit data are as of December 31, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1994 consummation of this proposal would not have a First Banks, Inc. significantly adverse effect on competition or the con- St. Louis, Missouri centration of banking resources in any relevant banking market. Order Approving Acquisition of Shares of a Bank The financial and managerial resources and future Holding Company prospects of Colorado Holding Company and Bank and other supervisory factors that the Board must First Banks, Inc., St. Louis, Missouri ("First consider under section 3 of the BHC Act are consis- Banks"), a bank holding company within the meaning tent with approval of this proposal.2 Considerations of the Bank Holding Company Act ("BHC Act"), has relating to the convenience and needs of the commu- applied pursuant to section 3 of the BHC Act nities to be served also are consistent with approval. (12 U.S.C. § 1842), to acquire up to 19.99 percent of Based on the foregoing and other facts of record, the the voting shares of Southside Bancshares Corpora- Board has determined that the application should be, tion, St. Louis, Missouri ("Southside").1 First Banks and hereby is, approved. The Board's approval of this has proposed to acquire these shares of Southside as a transaction is specifically conditioned upon compli- passive investment. ance with all the commitments made by Colorado Notice of the application, affording interested per- Holding Company in connection with this application. sons an opportunity to submit comments, has been For purposes of this action, these commitments and published (58 Federal Register 35,957 (1993)). The conditions will both be considered conditions imposed time for filing comments has expired, and the Board in writing by the Board in connection with its findings has considered the application and all comments reand decision, and, as such, may be enforced in pro- ceived in light of the factors set forth in section 3(c) of ceedings under applicable law. the BHC Act. This transaction shall not be consummated before First Banks, with consolidated assets of approxithe thirtieth calendar day following the effective date mately $2 billion, controls three banks in Illinois and of this Order, or later than three months after the one bank and one savings association in Missouri.2 effective date of this Order, unless such period is First Banks is the tenth largest commercial banking extended for good cause by the Federal Reserve Bank organization in Missouri, controlling $535 million in of Kansas City, acting pursuant to delegated authority. deposits, representing approximately 1 percent of total By order of the Board of Governors, effective bank deposits in commercial banking organizations in November 2, 1993. the state.3 Southside, with consolidated assets of approximately $526.5 million, operates five banks in Voting for this action: Chairman Greenspan, Vice Chair- Missouri. It is the 12th largest commercial banking man Mullins, and Governors Angell, Kelley, La Ware, and organization in Missouri, controlling $507.3 million in Phillips. Absent and not voting: Governor Lindsey. deposits, representing less than 1 percent of the total deposits in commercial banking organizations in the JENNIFER J. JOHNSON state. If First Banks were deemed to control Southside Associate Secretary of the Board following consummation of this proposal, First Banks would become the seventh largest commercial banking organization in Missouri, controlling $1 billion in deposits, representing approximately 1.9 percent of total deposits in commercial banking organizations in the state. In reviewing an application under section 3 of the 2. The Board has carefully reviewed comments from two individu- BHC Act, the Board is required to consider various als ("Protestants") who filed a lawsuit against Bank in connection factors, including certain supervisory factors, the efwith a residential construction loan they obtained from Bank. Protesfects of the acquisition on competition, the financial tants contend that Bank breached duties owed to Protestants by failing to obtain lien waivers from subcontractors before disbursing the loan and managerial resources and future prospects of the proceeds, thereby exposing Protestants to potential liability to the organizations and institutions involved, and the consubcontractors. The Board has carefully considered the Protestants' comments in light of all facts of record, including a judgment rendered in favor of Bank by the District Court for the County of Eagle, Colorado, on the merits of Protestants' allegations. The Board also has considered reports of examination by Bank's primary federal 1. First Banks currently controls 4.99 percent of Southside. First regulator, the Office of the Comptroller of the Currency, that assessed Banks holds options to acquire 13.1 percent of Southside and plans to the adequacy of the bank's loan-disbursement and lien-waiver policies purchase an additional 1.9 percent of Southside's shares through for real estate construction loans. In light of all the facts of record, the private or open market transactions. Board does not believe that Protestants' allegations warrant denial of 2. Asset data are as of March 31, 1993. this application. 3. Deposit data are as of June 30, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 35 venience and needs of the community to be served. institutions in the market. The Herfindahl-Hirschman 12 U.S.C. § 1842(c). The Board has considered First Index ("HHI") would increase 8 points to 1030.8 Banks's proposal in light of these factors. First Banks is the largest depository institution in the Hermann banking market,9 controlling deposits of Effects of Acquisition on Competition $59.7 million, representing approximately 36.1 percent of total deposits in depository institutions in the mar- The Board has previously indicated that the acquisi- ket. Southside is the fourth largest depository institution of less than a controlling interest in a bank is not tion in the Hermann banking market, controlling dea normal acquisition for a bank holding company.4 posits of $22.7 million, representing approximately However, the requirement in section 3(a)(3) of the 13.7 percent of total deposits in depository institutions BHC Act that the Board's approval be obtained before in the market. If considered as a combined organizaa bank holding company acquires more than 5 percent tion, First Banks would remain the largest depository of the voting shares of a bank suggests that Congress institution in the Hermann banking market upon concontemplated the acquisition by bank holding compa- summation of this proposal, controlling total deposits nies of between 5 and 25 percent of the voting shares of $82.4 million, representing approximately 49.9 perof banks. Moreover, nothing in section 3(c) of the cent of total deposits in depository institutions in the BHC Act requires denial of an application solely market. The HHI would increase 993 points to 3488. because a bank holding company proposes to acquire The question of whether a substantial lessening of less than a controlling interest in a bank or a bank competition would result from a minority investment holding company. On this basis, the Board has previ- in a competing bank must be answered in light of the ously approved the acquisition by a bank holding specific facts of each case.10 The Board views these company of less than a controlling interest in a bank.5 acquisitions with concern and continues to believe that First Banks and Southside compete directly in the noncontrolling interests in directly competing banks or St. Louis and Hermann, Missouri, banking markets. bank holding companies may raise serious questions In the St. Louis banking market,6 First Banks is the under the BHC Act. The Board has noted previously seventh largest commercial bank or thrift institution that one company need not acquire control of another ("depository institution"), controlling deposits of in order to substantially lessen competition between $730.9 million, representing approximately 2.7 percent them. It is possible, for example, that the acquisition of total deposits in depository institutions in the mar- of a substantial ownership interest in a competitor or a ket.7 Southside is the 11th largest depository institu- potential competitor of the acquiring firm may alter the tion in the St. Louis banking market, controlling market behavior of both firms in such a way as to deposits of $409.9 million, representing approximately weaken or eliminate independence of action between 1.5 percent of total deposits in depository institutions the organizations and increase the likelihood of coopin the market. If considered as a combined organiza- erative operations.11 tion, First Banks would become the sixth largest Based on all the facts of record, it is the Board's depository institution in the St. Louis banking market, judgment in this case that no significant reduction in controlling deposits of $1.1 billion, representing apcompetition is likely to result from First Banks's proximately 4.2 percent of total deposits in depository proposed acquisition of shares of Southside. First Banks has agreed to abide by certain commitments, stated in the Appendix to this Order, previously relied 4. See, e.g., State Street Boston Corporation, 67 Federal Reserve Bulletin 862, 863 (1981). 5. See, e.g., Mansura Bancshares, Inc., 79 Federal Reserve Bulletin 37 (1993) ("Mansura") (acquisition of 9.7 percent of the voting 8. Under the revised Department of Justice Merger Guidelines, 49 shares of a bank holding company); SunTrust Banks, Inc., 76 Federal Federal Register 26,823 (1984), a market in which the post-merger Reserve Bulletin 542 (1990) ("SunTrust") (acquisition of up to HHI is between 1000 and 1800 is considered moderately concentrated. 24.99 percent of the voting shares of a bank); First State Corporation, The Department of Justice has informed the Board that a bank merger 76 Federal Reserve Bulletin 376 (1990) ("First State") (acquisition of or acquisition generally will not be challenged (in the absence of other 24.9 percent of the voting shares of a bank). factors indicating anticompetitive effects) unless the post-merger HHI 6. The St. Louis banking market is approximated by the City of is at least 1800 and the merger or acquisition increases the HHI by at St. Louis, Missouri; St. Charles, St. Louis, and Jefferson Counties in least 200 points. The Department of Justice has stated that the higher Missouri; Boles and Calvey Townships in Franklin County, Missouri; than normal HHI thresholds for screening bank mergers for anticom- Madison and Monroe Counties in Illinois; and St. Clair County petitive effects implicitly recognizes the competitive effect of limited (excluding Lenzburg and Marissa Townships), Illinois. purpose lenders and other non-depository financial entities. 7. Market share data are based on calculations in which the deposits 9. The Hermann market is approximated by Boeuf Township in of thrift institutions are included at 50 percent. The Board previously Franklin County; Boeuf, Boulware, Richland, and Roark Townships has indicated that thrift institutions have become, or have the poten- in Gasconade County; Loutre Township in Montgomery County; and tial to become, major competitors of commercial banks. See Midwest Benton Township in Osage County, all in Missouri. Financial Group, 75 Federal Reserve Bulletin 386 (1989); National 10. See, e.g., Mansura; SunTrust; First State. City Corporation, 70 Federal Reserve Bulletin 743 (1984). 11. See Mansura at 38. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1994 on by the Board in cases involving minority invest- considerations are consistent with approval of this ments.12 For example, First Banks has committed to application.15 not exercise a controlling influence over the management or policies of Southside or its subsidiary banks; Other Considerations to not have any director, officer, or employee interlocks with Southside; and to not solicit or participate Considerations relating to the financial and managerial in soliciting proxies with respect to any matter pre- resources and future prospects of First Bank and sented to the shareholders of Southside. First Banks Southside and their subsidiaries, the convenience and also has committed that its ownership interest in needs of the community, and other supervisory factors Southside will be a strictly passive investment, and the Board is required to consider under section 3 of the First Banks is prohibited by its commitments and the BHC Act also are consistent with approval of this BHC Act from acting either alone or in concert with proposal.16 any other entity to control Southside without prior Based on the foregoing and other facts of record, the Board approval. Board has determined that this application should be, Moreover, the record in this case indicates that the and hereby is, approved. The Board's approval of this acquisition of shares of Southside by First Banks is not transaction is specifically conditioned upon complilikely to alter the market behavior of either banking ance with the commitments made by First Banks in organization in such a way as to weaken or eliminate connection with this application. For purposes of this independence of action between the organizations and action, these commitments and conditions will both be increase the likelihood of cooperative operations. In considered conditions imposed in writing by the Board particular, management of Southside has indicated its in connection with the Board's findings and decision intention to remain completely independent of First and, as such, may be enforced in proceedings under Banks, and has taken certain steps to prevent First applicable laws. The transaction approved in this Banks from acquiring a controlling interest in South- Order shall not be consummated before the thirtieth side or from exercising any control over the business calendar day following the effective date of this Order, affairs of Southside.13 Additionally, the record in this or later than three months after the effective date of case indicates that both First Banks and Southside this Order, unless such period is extended for good have a relatively small portion of their total banking cause by the Board or by the Federal Reserve Bank of deposits in the Hermann market.14 Accordingly, there St. Louis, acting pursuant to delegated authority. appears to be little incentive for First Banks and By order of the Board of Governors, effective Southside to engage in any collusive activities that November 8, 1993. would have a significantly adverse effect on competition in an attempt to gain profits in this small, rural Voting for this action: Chairman Greenspan and Governors banking market. In light of all the facts of record in this Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and case, including First Banks's commitments not to not voting: Vice Chairman Mullins. exercise any control over Southside and the lack of incentive for First Banks and Southside to engage in JENNIFER J. JOHNSON any collusive, anticompetitive behavior, the Board Associate Secretary of the Board believes that First Banks will not have the power to affect the market behavior of Southside, or that a Appendix lessening of competition in the Hermann banking market would result from consummation of this pro- As part of this proposal, First Banks has committed posal. Thus, the Board concludes that competitive that it will not, without the Board's prior approval: 15. See, e.g., Summit Bancorp, Inc., 77 Federal Reserve Bulletin 952 (1991); United Counties Bancorp, 75 Federal Reserve Bulletin 714 12. See, e.g., Mansura at 39. (1989). 13. For example, management of Southside has implemented a 16. The owner of a small business in Hermann has submitted a so-called "poison-pill" shareholders' rights plan. This poison-pill comment to the Board alleging that consummation of this proposal plan, triggered if any person acquires 25 percent or more of South- would adversely affect the local credit needs of individuals and small side's voting shares, provides all shareholders (other than the share- businesses in the Hermann area. Based on all the facts of record in this holder acquiring the 25 percent interest in Southside) with the right to case, including the commitments made by First Banks to not control purchase additional shares in Southside, thereby significantly diluting or attempt to control Southside, the Board concludes that consummathe 25 percent shareholder's interest. tion of this proposal would not adversely affect the provision of 14. Less than 5 percent of the total deposits of both First Banks and banking services in this market, and that this allegation does not Southside are located in this market. otherwise warrant denial of this proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 37 (1) Exercise or attempt to exercise a controlling shares"), and thereby indirectly acquire First Acadiinfluence over the management or policies of South- ana National Bank ("Acadiana Bank"), both of side or its subsidiary banks; Opelousas, Louisiana.1 (2) Have or seek to have any employees or repre- Notice of the application, affording interested persentatives serve as an officer, agent, or employee of sons an opportunity to submit comments, has been Southside or its subsidiary banks; published (58 Federal Register 47,456 (1993)). The (3) Take any action that would cause Southside or time for filing comments has expired, and the Board its subsidiary banks to become subsidiaries of First has considered the application and all comments re- Banks; ceived in light of the factors set forth in section 3(c) of (4) Acquire or retain shares that would cause the the BHC Act. combined interest of First Banks and its officers, FCC, with total consolidated assets of $6.2 billion, directors, and affiliates to equal or exceed 25 percent operates five subsidiary banks in Louisiana.2 FCC is of the outstanding voting shares of Southside; the largest commercial banking organization in Loui- (5) Attempt to influence the dividend policies or siana, controlling deposits of $5 billion, representing practices of Southside or its subsidiary banks; 15.1 percent of total deposits in commercial banking (6) Attempt to influence the loan and credit deci- organizations in the state. Bancshares is the 25th sions or policies of Southside and its subsidiary largest commercial banking organization in Louisiana, banks, the pricing of services, and personnel deci- controlling deposits of $196.8 million, representing sions, the location of any offices, branching, the less than 1 percent of total deposits in commercial hours of operation, or similar activities of Southside banking organizations in the state. Upon consummaand its subsidiary banks; tion of this proposal, FCC would remain the largest (7) Dispose or threaten to dispose of shares of commercial banking organization in Louisiana, con- Southside in any manner as a condition of specific trolling deposits of $5.2 billion, representing 15.7 peraction or nonaction by Southside; cent of total deposits in commercial banking organiza- (8) Enter into any banking or nonbanking transac- tions in the state. tions with Southside, except that First Banks may establish and maintain deposit accounts with subsid- Competitive Considerations iary banks of Southside, provided that the aggregate balances of all such accounts do not exceed FCC and Bancshares compete directly in the Lafay- $500,000 and that the accounts are maintained on ette, Louisiana, banking market.3 In this market, FCC substantially the same terms as those prevailing for is the second largest banking or thrift organization comparable accounts of persons unaffiliated with ("depository institution"), controlling deposits of Southside; $362.3 million, representing 19.8 percent of total de- (9) Seek or accept representation on the board of posits in depository institutions in the market ("mardirectors of Southside; ket deposits").4 Bancshares is the 15th largest depos- (10) Propose a director or slate of directors in itory institution in the market, controlling deposits of opposition to a nominee or slate of nominees pro- $33.2 million, representing 1.8 percent of market deposed by the management or board of directors of posits. Upon consummation of this proposal, FCC Southside or its subsidiary banks; and would remain the second largest depository institution (11) Solicit or participate in soliciting proxies with in the Lafayette banking market, controlling deposits respect to any matter presented to the shareholders of $395.5 million, representing 21.6 percent of the of Southside. First Commerce Corporation 1. FCC proposes to merge Acadiana Bank into its wholly owned New Orleans, Louisiana subsidiary bank, First National Bank of Lafayette, Lafayette, Louisiana ("Lafayette Bank"), with Lafayette Bank surviving the merger. 2. Asset and state deposit data are as of June 30, 1993. Order Approving the Acquisition of a Bank Holding 3. The Lafayette banking market consists of the Lafayette and Company St. Martin parishes in Louisiana. 4. Market data are as of June 30, 1992. Market share data are based on calculations in which the deposits of thrift institutions are included First Commerce Corporation, New Orleans, Louisi- at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant ana ("FCC"), a bank holding company within the competitors of commercial banks. See Midwest Financial Group, 75 meaning of the Bank Holding Company Act ("BHC Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Act"), has applied under section 3 of the BHC Act Federal Reserve Bulletin 743 (1984). Thus, the Board has regularly included thrift deposits in the calculation of market share on a (12 U.S.C. § 1842) to acquire all the voting shares of 50-percent weighted basis. See, e.g., First Hawaiian Inc., 77 Federal First Acadiana National Bancshares, Inc. ("Banc- Reserve Bulletin 52 (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1994 market deposits. The Herfindahl-Hirschman Index development activities within its community. Protes- ("HHI") would increase by 72 points to 1487.5 tant also notes the absence of a loan office of Acadiana Based on all the facts of record, including the Bank in Plaisance, Louisiana. number of competitors that would remain in the La- The Board has carefully reviewed the CRA perforfayette banking market, and the relatively small in- mance record of FCC and Bancshares, as well as the crease in the market concentration and market share, comments received; FCC's and Bancshares' rethe Board has concluded that consummation of FCC's sponses to those comments; and all other relevant proposal would not result in any significantly adverse facts of record in light of the CRA, the Board's effect on competition in the Lafayette banking market regulations, and the Statement of the Federal Finanor any other relevant banking market. cial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").7 Convenience and Needs Considerations Initially, the Board notes that the comments raised by Protestant do not relate to the activities and per- In acting upon an application to acquire a depository formance of FCC or its subsidiaries, but focus on institution under the BHC Act, the Board must con- Acadiana Bank, and Bancshares, Acadiana Bank's sider the convenience and needs of the communities to current holding company. The Board also notes that be served, and take into account the records of the FCC has committed, as a result of this proposal, to relevant depository institutions under the Community implement the CRA policies and programs of FCC and Reinvestment Act (12 U.S.C. § 2901 et seq.) Lafayette Bank in the communities currently served ("CRA"). The CRA requires the federal financial by Acadiana Bank. supervisory agencies to encourage financial institu- The CRA performance record of FCC and Lafayette tions to help meet the credit needs of the local com- Bank appear to be satisfactory. The record in this case munities in which they operate, consistent with the indicates that all of FCC's subsidiary banks have safe and sound operation of such institutions. To received "outstanding" or "satisfactory" ratings duraccomplish this end, the CRA requires the appropriate ing the most recent examinations of their CRA perforfederal supervisory authority to "assess the institu- mance.8 FCC's lead bank, First National Bank of tion's record of meeting the credit needs of its entire Commerce, New Orleans, Louisiana, received a "satcommunity, including low- and moderate-income isfactory" rating from its primary regulator, the Office neighborhoods, consistent with the safe and sound of the Comptroller of the Currency ("OCC"), in operation of such institution," and to take that record January 1993.9 In addition, Acadiana Bank received a into account in its evaluation of bank holding company satisfactory rating from its primary regulator, the applications.6 OCC, in the most recent examination of its CRA The Board has received comments from the Plai- performance. sance Development Corporation, Opelousas, Louisi- The Board also notes that the OCC determined in ana ("Protestant"), objecting to the proposal on the the 1993 CRA examination of Lafayette Bank that the basis of the record of performance under the CRA of bank's geographic distribution of home mortgage and Acadiana Bank. Specifically, Protestant alleges that home improvement applications and denials demon- Acadiana Bank has failed to meet the credit needs of strated reasonable penetration of all segments of the its entire community, including minority neighbor- bank's local community. The examination results also hoods and businesses; to develop and implement ade- indicated that the bank solicited credit applications quate CRA policies; or to participate in community from all segments of its local community, including low- and moderate-income neighborhoods. Moreover, the OCC concluded that Lafayette Bank was in com- 5. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately 7. 54 Federal Register 13,742 (1989). concentrated. A market in which the post-merger HHI is above 1800 8. The Agency CRA Statement provides that a CRA examination is is considered to be highly concentrated. In such markets, the Justice an important and often controlling factor in the consideration of an Department is likely to challenge a merger that increases the HHI by institution's CRA record, and that these reports will be given great more than 50 points. The Justice Department has informed the Board weight in the applications process. Id. at 13,745. that a bank merger or acquisition generally will not be challenged (in 9. FCC's other subsidiary banks have received the following CRA the absence of other factors indicating anticompetitive effects) unless ratings: Lafayette Bank received a "satisfactory" rating from the the post-merger HHI is at least 1800 and the merger increases the HHI OCC in January 1993; First National Bank of Lake Charles, Lake by more than 200 points. The Justice Department has stated that the Charles, Louisiana, received a "satisfactory" rating from the OCC in higher than normal threshold for an increase in the HHI when January 1993; and City National Bank of Baton Rouge, Baton Rouge, screening bank mergers and acquisitions for anticompetitive effects Louisiana, received a "satisfactory" rating from the OCC in January implicitly recognizes the competitive effect of limited-purpose lenders 1993; Rapides Bank and Trust Company, Alexandria, Louisiana, and other non-depository financial entities. received an "outstanding" rating from the Federal Reserve Bank of 6. 12 U.S.C. § 2903. Atlanta in May 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 39 pliance with the substantive provisions of anti-discrim- The Board has carefully considered the entire ination laws and regulations, including the Equal record, including Protestant's comments in this case, Credit Opportunity Act and the Home Mortgage Dis- in reviewing the convenience and needs factor under closure Act.10 the BHC Act. Based on a review of the entire record Lafayette Bank also offers credit products to ad- of performance, the Board believes that the efforts of dress the credit needs of its entire community, includ- FCC and Bancshares to help meet the credit needs ing low- and moderate-income areas. For example, the of all segments of the communities served by FCC bank established a residential mortgage department to and Bancshares, including low- and moderate-inprovide residential mortgage loans to customers, and come neighborhoods, as well as all other conveoriginated 153 loans, totalling approximately $20 mil- nience and needs considerations, are consistent with lion in 1992. Lafayette Bank also offers Federal Hous- approval. ing Administration and Veterans Administration loans to its customers. Other Considerations With respect to small business lending, Lafayette Bank participates in the Louisiana Economic Devel- The Board also concludes that the financial and manopment Authority's "link deposit" program, which agerial resources and future prospects of FCC, Bancfunds commercial loans to small businesses. The bank shares, and their respective subsidiaries, and other also offers Small Business Administration ("SBA") supervisory factors the Board must consider under loans, and in 1992, had $6 million in outstanding SBA section 3 of the BHC Act, are consistent with aploans to customers. In addition, Lafayette Bank has proval. other outstanding commercial loans of approximately Based on all the facts of record, including the $11 million to businesses with annual revenues of less commitments made by FCC, the Board has deterthan $1 million. mined that this application should be, and hereby is, Lafayette Bank also participates in a variety of approved. The Board's approval is specifically condicommunity development projects and has established tioned upon compliance by FCC with all the commitspecial loan programs that offer flexible lending crite- ments made in connection with this application. For ria to the community. In this regard, approximately the purpose of this action, the commitments and 10 percent of the loans made pursuant to the bank's conditions relied upon by the Board in reaching its special tuition loan program have been extended to decision are deemed to be conditions imposed in low- and moderate-income customers. In addition, writing by the Board in connection with its findings Lafayette Bank offered assistance to victims of Hur- and decision, and, as such, may be enforced in proricane Andrew in August 1992 through the origination ceedings under applicable law. of 40 loans, totalling $180,000. The acquisition shall not be consummated before Finally, Lafayette Bank has committed to open a the thirtieth calendar day following the effective date community outreach office in Plaisance, on a one-day of this Order, or later than three months after the per week basis for at least two years, in office space to effective date of this Order, unless such period is be shared with the Protestant. The bank would staff extended for good cause by the Board or by the the office with a loan officer and the appropriate Federal Reserve Bank of Atlanta, acting pursuant to support staff to accept loan applications. In addition, delegated authority. the bank would offer financial counseling and home By order of the Board of Governors, effective buyer awareness and education programs in cooper- November 29, 1993. ation with Protestant, and Lafayette Bank would equip the office and assume all reasonable expenses associ- Voting for this action: Chairman Greenspan, Vice Chairated with its operation. Lafayette Bank also would man Mullins, and Governors Angell, Kelley, La Ware, Lindextend the days and hours of operation of this office as sey, and Phillips. needed.11 JENNIFER J. JOHNSON Associate Secretary of the Board 10. The examination results also note that all nonsubstantive violations were promptly corrected by senior management. 11. The Board has also carefully considered Protestant's allegations that the current holding company for Acadiana Bank has failed to comply with certain commitments, including a commitment to establish a loan office in Plaisance, made in connection with a previous application filed by that holding company. See First Acadiana Na- open an office in Plaisance, the Board does not believe that this tional Bancshares, Inc., 78 Federal Reserve Bulletin 136(1992). Based allegation is relevant to the record of FCC in this case or warrants any on all the facts of record, including the efforts made by Bancshares to regulatory action against Bancshares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1994 First Interstate Bancorp consummation of this proposal, First Interstate would Los Angeles, California remain the third largest commercial banking organization in California, controlling deposits of $16.7 billion, First Interstate Bank of California representing approximately 6.5 percent of the total Los Angeles, California deposits in commercial banking organizations in the state. Order Approving Acquisition of a Bank Holding First Interstate and Cal Rep Bancorp compete di- Company and Merger of Banks rectly in the Bakersfield and Lancaster banking markets. Upon consummation of this proposal, both bank- First Interstate Bancorp, Los Angeles, California ing markets would remain moderately concentrated as ("First Interstate"), a bank holding company within measured by the Herfindahl-Hirschman Index the meaning of the Bank Holding Company Act ("HHI").4 After considering the competition offered ("BHC Act"), has applied under section 3 of the BHC by other depository institutions in the markets,5 the Act (12 U.S.C. § 1842) to acquire all the voting shares number of competitors remaining in the respective of Cal Rep Bancorp, Inc. ("Cal Rep Bancorp"), and markets, the relatively small increase in market share thereby indirectly acquire California Republic Bank and market concentration in the respective markets, ("Cal Rep Bank"), both of Bakersfield, California.1 and all other factors of record, the Board concludes First Interstate-California, a state member bank, also that consummation of the proposal would not have a has applied pursuant to section 18(c) of the Federal significantly adverse effect on competition in any Deposit Insurance Act (12 U.S.C. § 1828(c)) ("Bank relevant banking market. Merger Act") to merge with Cal Rep Bank and establish a branch or branches under section 9 of the Convenience and Needs Considerations Federal Reserve Act. (12 U.S.C. § 321). Notice of the applications, affording interested per- In acting on an application to acquire a depository sons an opportunity to submit comments, has been institution as proposed in these applications, the published (58 Federal Register 34,053 (1993)). As Board must consider the convenience and needs of the required by the Bank Merger Act, reports on the communities to be served, and take into account the competitive effects of the merger were requested from records of the relevant depository institutions under the United States Attorney General, the Office of the the Community Reinvestment Act (12 U.S.C. § 2901 Comptroller of the Currency, and the Federal Deposit et seq.) ("CRA"). The CRA requires the federal Insurance Corporation. The time for filing comments financial supervisory agencies to encourage financial has expired, and the Board has considered all com- institutions to help meet the credit needs of the local ments received in light of the factors set forth in communities in which they operate, consistent with section 3(c) of the BHC Act, the Bank Merger Act and the safe and sound operation of such institutions. To the Federal Reserve Act. accomplish this end, the CRA requires the appropriate First Interstate, with consolidated assets of federal supervisory authority to "assess the institu- $49 billion,2 controls banking subsidiaries in Califor- tion's record of meeting the credit needs of its entire nia, Alaska, Arizona, Colorado, Idaho, Texas, Mon- community, including low- and moderate-income tana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. First Interstate is the third largest commercial banking organization in California, con- 4. Under the revised Department of Justice Merger Guidelines, 49 trolling deposits of $16.2 billion, representing approx- Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately imately 6.5 percent of total deposits in commercial concentrated. The Justice Department has informed the Board that a banking organizations in the state.3 Cal Rep Bancorp bank merger or acquisition generally will not be challenged (in the is the 39th largest commercial banking organization in absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by California, controlling deposits of $535.6 million, repmore than 200 points. The Justice Department has stated that the resenting less than 1 percent of total deposits in higher than normal HHI thresholds for screening bank mergers for commercial banking organizations in the state. Upon anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders and other non-depository financial institutions. 5. In this context, depository institutions include commercial banks, 1. First Interstate proposes to merge Cal Rep Bancorp into First savings banks, and savings associations. Market deposit data are as of Interstate, with First Interstate surviving the merger, and to merge Cal June 30, 1992, and are based on calculations in which the deposits of Rep Bank with its wholly owned subsidiary, First Interstate Bank of thrift institutions are included at 50 percent. The Board previously has California, Los Angeles, California ("First Interstate-California"), indicated that thrift institutions have become, or have the potential to with First Interstate-California surviving the merger. become, significant competitors of commercial banks. See WM Ban- 2. Asset data are as of June 30, 1993. corp, 76 Federal Reserve Bulletin 788 (1990); National City Corpora- 3. State deposit data are as of June 30, 1992. tion, 70 Federal Reserve Bulletin 743 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 41 neighborhoods, consistent with the safe and sound In its consideration of the convenience and needs operation of such institution," and to take that record factor, the Board has carefully reviewed the entire into account in its evaluation of these applications.6 record of CRA performance of First Interstate, Cal In this regard, the Board has received comments Rep Bancorp and their subsidiary banks; all comments from organizations in California and Texas ("Califor- received regarding these applications, including First nia Protestants" and "Texas Protestants," collec- Interstate's response to those comments; and all of the tively "Protestants") critical of the efforts of First other relevant facts of record, in light of the CRA, the Interstate, Cal Rep Bancorp, and their respective Board's regulations, and the Statement of the Federal subsidiary banks, to meet the credit and banking needs Financial Supervisory Agencies Regarding the Comof their communities.7 The California Protestants al- munity Reinvestment Act ("Agency CRA Statelege generally that First Interstate-California and Cal ment").10 Rep Bank have not met the credit needs of minorities and low- and moderate-income individuals, particu- Record of CRA Performance larly in Bakersfield and in seven other metropolitan statistical areas ("MSA's") in California.8 A. CRA Performance Examinations The Texas Protestants allege that First Interstate has not complied with the spirit and requirements of The Agency CRA Statement provides that a CRA various laws and regulations designed to prevent dis- examination is an important and often controlling crimination in bank credit practices, operations and factor in the consideration of an institution's CRA procedures, including the CRA, in attempting to meet record, and that these reports will be given great the credit needs of the African-American and ethnic weight in the applications process.11 In this case, the minority communities within the cities where First Board notes that all of First Interstate's subsidiary Interstate Bank of Texas, N.A. ("First Interstate- banks evaluated for CRA performance have received Texas"), a wholly owned subsidiary of First Inter- "outstanding" or "satisfactory" ratings from their state, has branches.9 primary regulators during their most recent examinations.12 First Interstate-California received a "satisfactory" rating from its primary federal regulator, the Federal Reserve Bank of San Francisco, at its most 6. 12 U.S.C. § 2903. recent examination for CRA performance as of 7. The California Protestants are: the California Reinvestment August 10, 1992 (the "1992 CRA Examination"). Committee, San Francisco, California; the A. Phillip Randolph Community Development Corporation, a member of the California Rein- Cal Rep Bank received a "needs to improve" rating vestment Committee; and the Communities for Accountable Reinvest- from its primary regulator, the Federal Deposit Insurment, Los Angeles, California ("CAR"). The "Texas Protestants" ance Corporation (the "FDIC"), at its most recent are: the Black State Employees Association of Texas, Inc., Dallas, Texas, and the African American Council for Empowerment, Inc., examination for CRA performance as of August 4, Grand Prairie, Texas. The Board permitted an additional period for 1993. The Board notes that Cal Rep Bank has been comment from the Fund Urban Northern Nevada Development, subject to regulatory constraints to improve its finan- Reno, Nevada, but received no comments from this organization. 8. In addition, one of the California Protestants alleges that Cal Rep cial condition, and that resources devoted to CRA Bank provides insufficient basic banking services to senior citizens, performance have been diminished. First Interstate and has an insufficient record of performance in the provision of small business financing. Another of the California Protestants believes that has committed to provide additional resources to the proposed acquisition may result in job losses and branch closures. address Cal Rep Bank's less-than-satisfactory record Several of the California Protestants requested that First Interstateof CRA performance by implementing First Inter- California clearly specify CRA products and outreach efforts, and commit to CRA goals in California, particularly Bakersfield, for state's CRA program at the branches of Cal Rep Bank affordable housing development, community economic development, acquired as a result of the proposed transaction, and and consumer needs. In addition, one of the California Protestants alleges that First Interstate's banking subsidiaries in Seattle, Denver, Portland, Phoenix, Houston, and Las Vegas have also not met the credit needs of minorities and low- and moderate-income neighborhoods. needs of these communities, such as African-American managers of 9. The Texas Protestants specifically allege that First Interstate- the bank, community groups, and consulting groups. Texas: 10. 54 Federal Register 13,742 (1989). (1) Has not developed a plan, or any lending, marketing and 11. 54 Federal Register 13,745 (1989). outreach programs, to meet the credit needs of low-income African- 12. First Interstate Bancard Company, N.A. ("Bancard"), a spe- Americans and other minorities in communities located in Dallas, cialty bank chartered solely for the purpose of issuing credit cards, Fort Worth, Irving and Grand Prairie, all in Texas; received a "needs to improve" rating for CRA performance from its (2) Has "redlined" these communities by not providing bank primary regulator, the Office of the Comptroller of the Currency (the branches or sufficient credit to individuals in these communities, as "OCC"), in November 1991. Bancard ceased operations in mid-1992, indicated by data the bank has filed under the Home Mortgage and was dissolved on September 20, 1993. First Interstate Bank of Disclosure Act (12 U.S.C. § 2801 et seq.) ("HMDA"); and Washington's "needs to improve" CRA performance rating, which (3) Has provided no technical assistance or other support to was referred to by one of the California Protestants, was upgraded to individuals and organizations with an understanding of the credit "satisfactory" by the OCC as of September 17, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1994 by taking specific steps to address the problems noted based organizations. In 1991, the bank established the in the CRA examination. Community Loans Unit to assist in providing funds for the creation, rehabilitation, or maintenance of afford- B. CRA Record of Performance of First able housing projects. The bank has approved or Interstate-California extended commitments totalling more than $80 million to several projects, including an $8 million participa- Protestants have submitted comments critical of First tion in a revolving construction loan for the develop- Interstate-California's record of performance under ment of 136 condominium units in San Jose to be made the CRA, and, therefore, Protestants have questioned available to low- to moderate-income individuals; a First Interstate-California's ability to address Cal Rep $7.1 million construction loan for a 55-unit single- Bank's CRA weaknesses. These comments have been family detached housing development in Lompoc, carefully considered in the context of First Interstate- with homes being offered for sale to individuals with California's CRA performance record and the pro- limited incomes; a $4.2 million construction loan for a posed initiatives discussed below. 56-unit apartment complex located in the City of San Lending Activities. First Interstate-California offers Jacinto, which will provide rental units to low-income a variety of loan products to assist in meeting the residents; and a $5.8 million loan to construct 96 rental ascertained credit needs of the bank's community, units for low- to middle-income families in Desert Hot including low- and moderate-income neighborhoods. Springs. For example, the bank introduced a new line of The bank also participates in government-insured mortgage products in 1992 to make home ownership and publicly sponsored programs, including Federal more affordable for low- and moderate-income bor- Housing Administration mortgage loans, California rowers. These programs include the Down Payment guaranteed business loans, Small Business Adminis- Assistance Program, which reduces the homebuyer's tration ("SBA") loans for small businesses, and fedout-of-pocket downpayment cost to 3 percent of the erally insured and state guaranteed student loans. For purchase price. First Interstate-California lends the example, in 1991, First Interstate-California's FHA remaining 2 percent in the form of a second mortgage loans totalled approximately $3.8 million and Veterans with below market rates and interest-only payments Administration loans totalled approximately $4.1 milfor the life of the loan. In addition, the Home Buyers lion. In addition, the bank made a total of approxi- Assistance Program has a downpayment requirement mately $5.6 million in loans under a program sponof 5 percent, with an option permitting the downpay- sored by the California Home Finance Agency in 1990, ment to come from a gift or grant to the borrower. and the success of that program led the bank to Both of these programs are targeted to low- and develop its own special mortgage programs to help moderate-income borrowers who may not otherwise meet the housing needs of low- and moderate-income meet the bank's credit standards. First Interstate- California residents. California has also established a Community Advance- In 1992, First Interstate-California established a ment Program targeted at low-income or minority centralized Small Business Loan Center to provide census tracts. By offering a downpayment requirement small businesses with access to a variety of credit of 5 percent from any qualified borrower, this program products and loan programs. First Interstate-Califoris designed to encourage individuals who do not fit the nia also participates in loan programs sponsored by the low- or moderate-income profile, but who still cannot SBA, and made loans totalling approximately $8.8 meet the usual 10 to 20 percent downpayment require- million under the SBA section 504 program in 1991. In ment, to invest in homes in low-income census tracts. 1991, the bank also extended loans totalling approxi- Each of these three programs offers favorable financ- mately $1 million in a special SBA program designed ing terms and flexible underwriting criteria.13 to finance the export of products by California busi- In addition, the bank recently has committed to nesses. provide $2 billion of special funding over a ten-year First Interstate-California also offers a F.I.R.S.T. period to low- and moderate-income communities consumer loan program to help low-income individustatewide for funding the construction and acquisition als qualify for personal loans, auto loans and other of low-income single- and multi-family housing, state consumer loans. Loans made under this program offer and federally guaranteed loans, small business devel- special underwriting features for individuals who opment and expansion, and nonprofit community- might not otherwise meet the bank's credit standards. This program is frequently advertised in publications targeted at minority communities. Community Development Activities. Bank person- 13. These programs offer reduced closing costs and higher debt/ income ratio requirements. nel monitor community development and redevelop- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 ment programs through contacts with a variety of Other Aspects of CRA Performance. First Interbusiness, non-profit and government organizations. state-California ascertains credit needs in a variety of For example, the bank is an active participant in the ways, including calling programs and meetings with California Community Reinvestment Corporation, civic and community groups. In addition, a CRA Task having committed $7 million to this non-profit corpo- Force regularly reviews data compiled from semiration established to provide permanent financing for annual Community Reinvestment Act Questionnaires low- to moderate-income housing developments. The completed by branch managers. First Interstatebank has also offered to fund term loans granted to California's marketing programs are designed to ensmall businesses by the Valley Small Business Devel- sure that all segments of the community, including opment Corporation; to purchase participations in low- and moderate-income areas, are informed of the small-business loans from the Southeast Economic bank's products and services. The bank has placed Development Corporation revolving loan fund; and to both deposit- and credit-related advertisements in a commit funds to the Pasadena Development Corpora- number of newspapers and periodicals serving minortion loan fund to be used primarily to assist women- ity communities throughout the state. First Interstate and minority-owned small businesses. Finally, the Mortgage Company ("FIMC"), a wholly owned subbank is leading a multi-bank consortium in the estab- sidiary of First Interstate-California, has conducted lishment of a community development corporation to home loan product promotions, and has held homeserve South Central Los Angeles.14 buyer workshops to promote its mortgage products. FIMC distributes its quarterly "Low-Income Bor- Distribution of Loans!Branch Offices. Examiners in rower Letter," which advertises the banks special First Interstate-California's most recent CRA performortgage loan programs, to branch loan officers and mance examination concluded that the bank had demlocal realtors. onstrated that the geographic distribution of its credit extensions, applications, and denials reflected a reasonable penetration in most segments of the delineated C. HMDA Data and Steps to Improve community, including low- and moderate-income Mortgage Lending areas, and that there were no indications that applications from low- to moderate-income neighborhoods California Protestants allege that 1991 and 1992 data were receiving adverse treatment because of the loca- required to be filed under the HMDA show that First tion of the property.15 First Interstate-California's Interstate-California and Cal Rep Bank discriminate record of opening and closing offices and of providing against borrowers located in low- and moderatefor the service and convenience and needs of its income and minority communities in California, especommunities was found to be adequate, and the bank cially in Bakersfield, and that 1991 HMDA data filed has expanded service hours in response to customer by First Interstate-California for seven other MSA's in surveys, and has added Spanish-speaking personnel in California17 show that the bank makes a higher perseveral branches.16 centage of HMDA-related loans in middle- and upperincome non-minority census tracts than low- and moderate-income and minority census tracts.18 14. First Interstate-California has also provided community development support to address problems caused by special circumstances. 17. The seven MSA's are Los Angeles, Riverside, Anaheim, In this regard, the bank participated in the Small Business Disaster Oakland, Sacramento, San Diego, and San Francisco. Assistance Program, committing to provide $30 million in interim 18. One of the California Protestants alleges that 1991 and 1992 financing to small business owners who were waiting for federal HMDA data for First Interstate's subsidiary banks operating in disaster relief in South Central Los Angeles in 1992. The bank waived Seattle, Denver, Portland, Phoenix, Houston, and Las Vegas show a all application and loan fees, and offered the loans at reduced rates for similar pattern of discriminatory mortgage lending. The Board has a 12-month term, with an additional 12-month renewal period if carefully reviewed these data in light of the most recent CRA needed. First Interstate-California also granted a 90-day payment performance examinations by the OCC, the primary federal regulator deferral on existing consumer loans, auto loans, credit cards, and lines of each bank operating in these cities. In each examination, the OCC of credit; increased credit lines with no credit review or application found no evidence of illegal discrimination or other practices that had expense; and expedited new loans to existing and new customers. the effect of discouraging credit applications. In the examinations of 15. Examiners noted that the bank's marketing program and out- subsidiary banks operating in Seattle, Portland and Phoenix, the OCC reach efforts did not cover eight Northern California counties where concluded that the banks had a reasonable pattern of penetration for the bank had no branches but which had been included within its their lending activities. First Interstate's subsidiary banks operating in delineated community. First Interstate-California subsequently con- Denver and Las Vegas were noted as having a disproportionate formed its delineated community to include only those California distribution of mortgage loans in middle- and upper-income versus counties in which the bank has at least one branch office. low- and moderate-income census tracts. However, the OCC concluded in both cases that the banks were aware of the disparities that 16. The 1992 CRA Examination found that there is no pattern of existed in the geographic distribution of their mortgage loans, and had systematically closing branch offices in low- to moderate-income taken steps to improve their record of mortgage lending in low- and neighborhoods, and that the bank's performance in opening and moderate-income areas. For example, the OCC noted that First closing offices and providing for the service and convenience needs of Interstate Bank of Denver, N.A., established a residential mortgage its community is adequate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 1994 HMDA data filed in 1991, and preliminary data for moderate-income communities, First Interstate- 1992, show that, in some categories, First Interstate- California has undertaken other steps specifically California's performance met or exceeded the perfor- designed to reduce disparities in its loan denial rates. mance of its peers. In addition, the number of mort- For example, every recommended denial of a mortgage applications received from minorities by First gage loan application from a minority applicant re- Interstate-California in the Bakersfield MSA has in- ceives a second review to ensure that the recommencreased by 71 percent from 1991 to 1992, and approval dation is appropriate. In addition to checking and and denial rates for minorities were comparable to confirming the reasons for loan denials, senior bank those for whites in 1992.19 However, HMDA data for officers determine if the rejected loan applicant can the Bakersfield MSA and the seven other MSA's in meet the lending criteria of one of the bank's special California identified by the California Protestant also mortgage programs. The bank also operates a "mysindicate disparities in approvals and denials of loan tery shopper" program to test how customers are applications according to racial and ethnic group and treated in the mortgage-application process in an income status in California. Because all banks are effort to detect any improper discrimination occurobligated to adopt and implement lending practices ring during that process. that ensure not only safe and sound lending, but also In response to California Protestants' allegations equal access to credit by creditworthy applicants regarding mortgage lending in Bakersfield, First regardless of race, the Board is concerned when the Interstate-California notes that historically the bank record of an institution indicates disparities in lending has not emphasized home mortgage lending in this to applicants in low- and moderate-income and minorarea, and has had no full-time mortgage loan officers in ity communities. The Board recognizes, however, that its three Bakersfield branches. In connection with this HMDA data alone provide only a limited measure of application, however, First Interstate has committed any given institution's lending in its community. The to initiate a number of steps to improve its mortgage Board also recognizes that HMDA data have limitalending in Bakersfield, as well as address the areas of tions that make the data an inadequate basis, absent weakness in mortgage lending identified in the FDIC's other information, for conclusively determining CRA examination of Cal Rep Bank.21 whether an institution has engaged in illegal discrimi- These steps include expanding the availability in nation in making lending decisions. all Bakersfield branches of its three mortgage-loan First Interstate-California's 1992 CRA Examina- products designed to facilitate home ownership for tion found no evidence of any pattern or practice of low- and moderate-income individuals: the Down discriminatory credit practices, or other practices Payment Assistance Program, the Home Buyer's designed to discourage credit applications.20 In this Assistance Program and the Community Advanceregard, examiners noted that the bank continually ment Program. In addition, First Interstate will alloassesses its lending activity for HMDA-reportable cate a portion of its $2 billion/10-year statewide loan loans. Moreover, in addition to its overall $2 billion/ commitment to low- and moderate-income commuten year special funding initiative for low- and nities to the former Cal Rep Bank branches. The bank's Community Development Department will monitor activity in Bakersfield monthly in 1994 to department in 1992, and actively promotes conventional mortgage evaluate the results of its efforts to increase mortgage financing as well as FHA- and VA-insured mortgage loans. First lending in this community. Interstate Bank of Nevada also originates FHA and VA mortgage First Interstate-California also will enhance its presloans, and participates in Nevada Housing Bond loan programs. Both banks have introduced Affordable Housing Programs, which offer ence in the Bakersfield community by moving its mortgage loans with flexible underwriting criteria to individuals of low district headquarters to Bakersfield. In addition, First and moderate incomes, and both banks have introduced a home improvement program targeted at low- and moderate-income individ- Interstate will assign three mortgage loan officers to its uals. Bakersfield branches to seek out home mortgage lend- 19. Applications received by First Interstate-California from minoring opportunities by, among other outreach efforts, ities in the eight California MSA's combined increased by 84 percent from 1991 to 1992. contacting realtors and home builders. The loan offic- 20. Examiners noted some violations of the Board's Regulation C, ers will train former Cal Rep Bank personnel in which prescribes requirements for reporting housing-related data under the HMDA. Many of the errors involved the incorrect coding of loan amounts and loan purpose. While there were cases in which the race or gender of the loan applicant was not listed, subsequent analysis of the data revealed that a significant portion of those cases 21. As a general matter, First Interstate maintains that the branches involved applications taken by telephone, which do not require of Cal Rep Bank will benefit from First Interstate-California's greater recordation of race or gender information. First Interstate-California resources, and access to the secondary market for conventional has taken steps to address the problems with its HMDA data, and the financing and special lending programs. In that regard, First Interbank's progress in correcting errors in its HMDA reports will be state-California has been approved by FannieMae to offer a downpayclosely monitored by the Federal Reserve Bank of San Francisco. ment assistance program to low- and moderate-income home buyers. 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Legal Developments 45 effective methods of marketing credit products to all First Interstate-Texas offers a variety of credit prodsegments of the banking community.22 First Interstate- ucts and services designed to meet the credit needs of California will continue to advertise the availability of low- and moderate-income and minority neighborits special loan programs in newspapers targeted to the hoods within its delineated communities. In this re- Bakersfield market, and has committed to aggressively gard, the bank developed the First Advantage Loan market these programs to low- and moderate-income Program, which offers credit products to individuals and minority communities in Bakersfield.23 In addi- with incomes equal to or less than the median income tion, the bank intends to conduct approximately 20 for the county in which they reside. The program homebuyer workshops in Bakersfield during the first offers flexible underwriting criteria, such as higher year after the merger to educate first-time homebuyers debt/income ratios and the consideration of alternative in budgeting and other financial matters, and will income sources. Loans made under this program ininitiate a community forum with key individuals in the clude home mortgage loans with up to 95 percent Bakersfield community to introduce the bank's pro- financing and additional financing available to cover grams and determine methods of best addressing com- downpayments and closing costs, home improvement munity needs. loans, unsecured personal loans, and new or used automobile loans with favorable financing terms. The D. CRA Record of Performance of First bank participates in the Houston Housing Partnership Interstate-Texas with other financial institutions and government housing entities.25 The bank also extended home mortgage Texas Protestants have alleged that First Interstate- loans to qualified low- and moderate-income borrow- Texas has failed to comply with the spirit and require- ers through the Community Homebuyer Program.26 ments of laws and regulations designed to prevent In its most recent CRA examination of First Interdiscrimination, and has generally failed to meet the state-Texas, the OCC indicated that the bank has credit needs of low-income, African-American com- implemented marketing programs that reach all segmunities in certain urban areas in Texas. These com- ments of its delineated communities, and are designed ments have been carefully considered by the Board in to meet the diverse credit needs of those communities. light of all facts of record, including First Interstate- The bank frequently uses direct mail as a method to Texas' most recent examination for CRA performance advertise and market its products to specific groups by its primary regulator, the OCC. and individuals, including those in low- and moderate- First Interstate-Texas received a "satisfactory" rat- income neighborhoods. ing from the OCC as of July 30, 1993. In this exami- First Interstate-Texas offers various loans for small nation, the OCC found no evidence of illegal discrim- businesses, including credit for seasonal inventory, ination or other practices designed to discourage working capital, long-term fixed assets, and business credit. In addition, the OCC concurrently conducted a expansion. Through June 30, 1993, the bank approved fair lending examination of the bank. This examination over 5,574 small business loans totaling approximately included a review of approximately 74 percent of $252 million.27 The bank addresses identified needs for conventional, purchase-money mortgage applications small business lending through 13 Business Banking and 80 percent of government-guaranteed mortgage Units located in different regions of Texas. The bank applications received in a 12-month period and geographically dispersed throughout the bank's various communities. The OCC found no evidence of discrimmoderate-income neighborhoods through loan commitments to the ination or other illegal credit practices.24 Local Initiatives Support Corporation and the Dallas Affordable Housing Partnership. 25. Mortgage loans offered through this partnership are made only to residents of the City of Houston/Harris County who have incomes 22. The FDIC examiners noted that Cal Rep Bank experienced a equal to less than 80 percent of the Harris County median, and who low penetration of loans in low- and moderate-income and minority are willing to attend homebuyer counseling and education seminars. neighborhoods due to a lack of marketing and outreach to these In 1992, First Interstate-Texas funded 29 mortgage loans totaling neighborhoods, including neighborhoods in the southeast section of approximately $1.1 million through programs sponsored by this partdowntown Bakersfield. nership, and the bank funded 20 loans totaling approximately $927,000 23. First Interstate-California has already begun to advertise its through the first six months of 1993. special loan products in newspapers targeted to the Bakersfield 26. Mortgage loans made under this program offer flexible underminority communities. writing criteria including high loan-to-value ratios and higher than 24. Although examiners noted that First Interstate-Texas had a low usual debt/income ratios. penetration of mortgage loans in low-income neighborhoods, the OCC 27. The Board has received comments from two individuals relating found that management had taken a variety of steps to address the to loan transactions at First Interstate-Texas. In light of the facts of credit needs of these neighborhoods through assessment, product record, including relevant reports of examination for this bank, the development (such as the First Advantage Loan Program), and Board believes that these individual complaints do not warrant denial targeted advertisements. In addition, examiners found that the bank is of these applications. These complaints have been referred to the involved in the construction financing of housing units in low- and OCC, the bank's primary regulator, for consideration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1994 has received SBA Certified Lender status for the estant's comments, First Interstate's response to Houston region, and anticipates receiving Certified those comments, and relevant reports of examina- Lender status for central Texas and Dallas/Fort Worth tion, the Board concludes that convenience and by late 1994. needs considerations, including the CRA perfor- The bank has regular contact with a wide variety of mance records of First Interstate, Cal Rep Bancorp individuals, groups and community organizations to and their subsidiary banks, are consistent with apascertain community credit needs, and the board of proval of these applications.31 The Board recognizes, directors has established formal processes to guide however, that there are areas of weakness in the these ascertainment efforts.28 The bank has a Commu- CRA performance of First Interstate in this case. As nity Affairs Officer in Houston who is the primary discussed in this Order, First Interstate has initiated contact for community groups and is responsible for programs and has proposed specific steps to address state-wide ascertainment efforts. In addition, the bank deficiencies in mortgage lending to low- and moderhas a formal officer call program, pursuant to which ate-income and minority neighborhoods, especially bank personnel conducted almost 500 credit needs in Bakersfield. The Board believes that these initiaassessment calls in 1992. The OCC found that during tives, when viewed in the context of the satisfactory 1992, bank management had contacted and met with a performance ratings for First Interstate's subsidiary significant number of groups representing community banks, on balance, support approval of these appliand governmental organizations.29 Furthermore, First cations. Interstate-Texas is working with eight other institu- The Board expects First Interstate to implement tions, the City of Dallas and private developers to fully its CRA initiatives and to continue to improve target neighborhoods for redevelopment funds and its CRA performance, including its housing-related mortgage products in an effort to increase the amount lending. The Board will continue to monitor impleof affordable housing for low-income residents in the mentation of First Interstate's CRA program in the Dallas area.30 branches of Cal Rep Bank being acquired under this proposal, and take this review into account in future Conclusion Regarding Convenience and Needs applications to establish a depository facility. In this Factors regard, the Board requires as a condition that First Interstate submit to the Federal Reserve Bank of San In considering the overall CRA performance records Francisco, within six months of consummation of the of First Interstate and Cal Rep Bancorp, the Board acquisition of Cal Rep Bank and semiannually therehas carefully considered the entire record, including after, as well as when requested by Board staff in the public comments in this case. Based on a review connection with future expansion applications by of the entire record of performance, including Prot- First Interstate, a report on the progress of First Interstate-California in identifying and meeting the credit and banking needs of minority and low- and moderate-income communities in Bakersfield. 28. Bank provides technical as well as financial assistance to local organizations serving low- and moderate-income neighborhoods in Texas. In addition, data provided by First Interstate-Texas indicates that the bank has approximately $39.7 million in total outstanding loans in communities identified by the Texas Protestants as being excluded from the bank's lending area. For example, the bank indicates that it has over $17.2 million of loans outstanding in the Como/Stop Six community; over $12.9 million of loans outstanding in the Bear Creek community ; over $4.5 million of loans outstanding in 31. Several Protestants have requested the Board hold a public the Southeast Oak Cliff community; and over $3 million of loans meeting or hearing on these applications. The Board is not required outstanding in the South Dallas/Fair Park community. under section 3(b) of the BHC Act to hold a public hearing or meeting 29. The OCC found that in 1992, the bank's contacts with local on an application unless the appropriate supervisory authority for the governmental entities comprised approximately 25 percent of the bank to be acquired makes a timely written recommendation of denial bank's outreach efforts; contacts with religious and minority groups of the application. In this case, the California Superintendent of Banks comprised 35 percent; and contacts with civic and neighborhood has not recommended denial of the proposal. coalitions comprised 30 percent. Generally, under the Board's rules, the Board may, in its discretion, 30. The Texas Protestant has asserted that First Interstate-Texas hold a public hearing or meeting on an application to clarify factual has not appointed African-Americans to positions of senior manage- issues related to the application and to provide an opportunity for ment. In this regard, the Board notes that because First Interstate- testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Texas employs more than 50 people and acts as an agent to sell or Board has carefully considered this request. In the Board's view, the redeem U.S. savings bonds and notes, it is required by Treasury Protestants have had sufficient opportunity to present written submis- Department and Department of Labor regulations to: sions, and have, in fact, submitted written comments that have been (1) file annual reports with the Equal Employment Opportunity considered by the Board. Therefore, the Board has determined that a Commission; and public meeting or hearing is not necessary to clarify the factual record (2) Have in place a written affirmative action program which states in this application, and is not otherwise warranted in this case. its intentions, efforts, and plans to achieve equal opportunity in the Accordingly, the request for a public hearing or meeting on these employment, hiring, promotion, and separation of personnel. applications is denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 47 Other Considerations income and minority neighborhoods, especially in Bakersfield, California. For example, 1992 HMDA The financial and managerial resources and future data indicates that First Interstate Bank of California prospects of First Interstate, Cal Rep Bancorp, and has made only four mortgage loans representing their respective subsidiaries, and other supervisory $174,000 in the aggregate to African-Americans in factors the Board must consider under section 3 of the Bakersfield. First Interstate has not provided sufficient BHC Act and under the Bank Merger Act, are consis- evidence of other types of CRA-related lending activtent with approval of this proposal. In addition, the ities, such as a strong record of lending to small Board finds that the factors it is required to consider businesses located in minority or low- and moderateunder the Federal Reserve Act are also consistent with income areas, to balance this poor mortgage lending approval. record. I recognize that First Interstate's subsidiary banks all Conclusion have satisfactory or better CRA performance ratings from their primary federal regulators, and that First Based on the foregoing and other facts of record, the Interstate has committed to initiate certain new pro- Board has determined that the applications should be, grams to improve its lending performance. In light of and hereby are, approved. The Board's approval is the deficiencies in First Interstate's mortgage lending, specifically conditioned upon compliance with all of the however, I would require more information on First commitments made by First Interstate in connection Interstate's record of making other types of loans, with these applications and with the conditions referred including consumer and small business loans, to help to in this Order. This approval is further subject to First meet the credit needs in low- and moderate-income and Interstate obtaining the California Superintendent of minority neighborhoods, and a more detailed plan for Banks' approval for the proposed transaction under addressing its weaknesses in mortgage lending in applicable state law. For purposes of this action, the Bakersfield and other areas of the state. Without this commitments and conditions relied on in reaching this information, I do not believe that the current record is decision shall be deemed to be conditions imposed in complete enough to permit me to vote for approval. writing by the Board and, as such, may be enforced in proceedings under applicable law. November 9, 1993 The acquisition of Cal Rep Bancorp and Cal Rep Bank shall not be consummated before the thirtieth Shawmut National Corporation calendar day following the effective date of this Order, Hartford, Connecticut, and or later than three months after the effective date of Boston, Massachusetts this Order, unless such period is extended for good cause by the Federal Reserve Bank of San Francisco Shawmut New Hampshire Corporation acting pursuant to delegated authority. Manchester, New Hampshire By order of the Board of Governors, effective November 9, 1993. Order Disapproving Acquisition of a Bank and Formation of a Bank Holding Company Voting for this action: Chairman Greenspan and Governors Angell, Kelley, LaWare, and Phillips. Voting against this Shawmut National Corporation, Hartford, Connectiaction: Governor Lindsey. Absent and not voting: Vice cut, and Boston, Massachusetts ("Shawmut"), a bank Chairman Mullins. holding company within the meaning of the Bank JENNIFER J. JOHNSON Holding Company Act ("BHC Act"), has applied Associate Secretary of the Board under section 3 of the BHC Act (12 U.S.C. § 1842) to acquire all of the voting shares of New Dartmouth Dissenting Statement of Governor Lindsey Bank, Manchester, New Hampshire ("New Dartmouth"), a state-chartered guaranty savings bank.1 As I dissent from the Board's action in this case because I believe that the weight of evidence of performance 1. Shawmut New Hampshire Corporation, Manchester, New under the Community Reinvestment Act ("CRA") by Hampshire ("Shawmut New Hampshire"), a wholly owned subsid- First Interstate Bank of California and California Re- iary of Shawmut, also has applied under section 3 of the BHC Act to become a bank holding company by acquiring all of the voting shares public Bank is insufficient to warrant approval of these of Shawmut Bank New Hampshire, Concord, New Hampshire, a applications. In my view, both banks have deficient de novo bank which will be merged with New Dartmouth. The merger records of performance in mortgage lending and in of Shawmut Bank New Hampshire with New Dartmouth is subject to approval by the Federal Deposit Insurance Corporation under the community outreach efforts to low- and moderate- Bank Merger Act. 12 U.S.C. § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • January 1994 part of these applications, Shawmut also has applied Statement of Chairman Greenspan, Vice Chairman for Board approval under section 3 of the BHC Act to Mullins and Governor Lindsey acquire an option to purchase up to 14.9 percent of the voting shares of New Dartmouth which would We believe that the factors the Board is required to terminate upon consummation of the proposed acqui- consider under section 3 of the Bank Holding Comsition. pany Act ("BHC Act") in evaluating a bank acquisi- Notice of the applications, affording interested per- tion proposal are not at this time consistent with sons an opportunity to submit comments, has been approval of this proposal. Accordingly, we would published (58 Federal Register 33,940 (1993)). The deny these applications. time for filing comments has expired, and the Board In December 1992, the Board made a referral to the has considered all comments received in light of the Department of Justice regarding the lending practices factors set forth in section 3(c) of the BHC Act. of Shawmut Mortgage Company, a subsidiary of the Section 3 of the BHC Act prohibits, except with the applicant in this case, Shawmut National Corporation. prior approval of the Board, any action to be taken Based on a study of home mortgage lending data that causes any bank holding company to acquire more conducted by the Federal Reserve Bank of Boston, the than 5 percent of the voting shares of any bank or any Board was concerned that Shawmut, through its mortcompany to become a bank holding company. After gage company affiliate, may have engaged in discrimcarefully considering all the facts of record with re- inatory treatment of minorities in mortgage lending in spect to the factors set forth in the BHC Act, a Boston, Massachusetts, in violation of the Equal majority of the Board members present at a meeting Credit Opportunity Act. This matter continues to be did not vote to approve these proposals and, therefore, under investigation by the Department of Justice. the applications are not approved. We believe that this matter is of the most serious In this regard, three members of the Board voted to concern, and that the Board cannot approve an appliapprove the proposal on the basis of Shawmut's cation to acquire a bank under the BHC Act without record in addressing issues raised under the BHC Act strong evidence that the applicant in these circumfactors, including considerations relating to manage- stances has programs in place to ensure compliance rial, financial and the convenience and needs factors, with the Equal Credit Opportunity Act and has a while three members of the Board voted against the demonstrated record that the programs are adequate proposal on the basis of a number of concerns raised and working well. by the mortgage lending operations of Shawmut, in- In this case, Shawmut has recently taken a number cluding a belief that the current record was not suffi- of steps designed to improve its record of lending to cient to permit a favorable determination of the effec- minorities and to address concerns that it may have tiveness or adequacy of steps recently taken by engaged in discriminatory lending practices in the Shawmut to address concerns regarding its compli- past. However, these steps are relatively new, and, in ance with the Equal Credit Opportunity Act and the our view, have not been in place for a sufficient period Home Mortgage Disclosure Act. Statements explain- of time to allow an adequate evaluation either of the ing the reasons for these views of the Board members effectiveness or sufficiency of these initiatives. will be released at a later date. We are also concerned that inaccuracies in the Accordingly, a majority of the votes cast by Board HMDA data reported by Shawmut for the period 1990 members present and voting on these applications not through 1992, and the first six months of 1993 (prior to having been cast for approval, the applications are its correction through the examination process), as therefore not approved. This action constitutes final well as the structure of its mortgage lending operation action of the Board for purposes of sections 3 and 9 of indicate inattention by management of Shawmut to the BHC Act. important legal requirements that apply to the organi- By order of the Board of Governors, effective zation. While Shawmut has either taken or agreed to November 15, 1993. take actions to address these matters, we believe that the need for these actions reflects adversely on the management factors in this case, and that the effec- Voting against approval of these applications: Chairman tiveness of these actions has yet to be demonstrated. Greenspan, Vice Chairman Mullins, and Governor Lindsey. Voting to approve these applications: Governors Angell, For these reasons, we do not believe that the factors Kelley, and Phillips. Abstaining from this action: Governor that the Board must consider in reviewing requests for La Ware. Board approval under section 3 of the BHC Act are consistent with approval of this case. While we agree JENNIFER J. JOHNSON with the other Board members that competitive and Associate Secretary of the Board financial factors are consistent with approval, we do Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 49 not believe that these findings outweigh the other 1990 data, which showed denial rates of 40 percent for factors in this case. Accordingly, we would deny these African-Americans and 15 percent for whites in the applications. Boston MSA. The pending Department of Justice investigation of November 19, 1993 past lending practices of Shawmut's mortgage subsidiary and the inaccuracies in the HMDA data for the Statement of Governor Angell, Governor Kelley and years 1990 through 1992 do raise serious concerns. Governor Phillips However, we believe that Shawmut has made the necessary reforms to its management and programs to We would approve this proposal because the record correct any problems in these areas and to prevent shows that Shawmut has identified and implemented a these problems from recurring, and that Shawmut has number of steps that already have resulted in tangible demonstrated the effectiveness of its initiatives through improvements to increase its lending to minorities, an improved lending record. We also note that no final reduce the racial disparity in denials of mortgage determination has been reached regarding whether applications, and ensure that minority applicants are Shawmut has violated the Equal Credit Opportunity not subject to discriminatory treatment. Act. In this regard, Shawmut's initiatives include special Governors Kelley and Phillips would have voted to programs as well as systemic reform. For example, require that Shawmut submit periodic reports showing Shawmut initiated at the beginning of this year a five- its continued progress in order to assure that these point mortgage loan program to attract mortgage appli- programs are fully implemented and that Shawmut cations from minorities and decrease its denial rate for sustained its improvement in this area, and that the minority applications. This program featured a commit- Board take extra care to monitor and oversee in the ment of $50 million in mortgages that offer more flexible applications process Shawmut's compliance with its underwriting criteria, including lower downpayment responsibilities for fair and equal access to credit in the requirements, modifications to formulas for calculat- communities it serves. ing income, and less restrictive underwriting ratios. In In this light, we believe that the factors under the addition, Shawmut's mortgage subsidiary has commit- Bank Holding Company Act, including the managerial ted $25 million towards a new mortgage program and convenience and needs considerations, are conguaranteed by the Federal National Mortgage Associ- sistent with approval. ation and targeted to low- and moderate-income homebuyers. Shawmut's initiatives also have included a November 19, 1993 number of other systemic reforms which we believe will help sustain Shawmut's progress in addressing the Orders Issued Under Section 4 of the Bank weaknesses in its mortgage lending record, including Holding Company Act an expanded affirmative marketing program for targeted areas, financial incentives for employees origi- Chemical Banking Corporation nating loans under its special mortgage programs, New York, New York enhanced employee training, loan counseling programs and independent monitoring of mortgage appli- Order Approving an Application to Engage in cations. Underwriting and Dealing in Bank-Ineligible These steps already have resulted in significant im- Securities on a Limited Basis provement in Shawmut's mortgage lending activities. HMDA data filed for the first six months of 1993, and Chemical Banking Corporation, New York, New York verified by Federal Reserve System examiners in con- ("Chemical"), a bank holding company within the nection with these applications, show a substantial meaning of the Bank Holding Company Act ("BHC increase in the number of loan applications received by Act"), has applied under section 4(c)(8) of the BHC Shawmut's mortgage subsidiary from African-Ameri- Act (12 U.S.C. § 1843(c)(8)), and section 225.23 of the cans in the Boston MSA and the 23 MSA's in Shaw- Board's Regulation Y (12 C.F.R. 225.23), to engage mut's banking community, as well as an increase in the de novo through its wholly owned subsidiary, Chemical number of originations to African-Americans in these Securities Inc., New York, New York ("Company"), areas. Moreover, for the first six months of 1993, the in underwriting and dealing in, to a limited extent, all denial rate for mortgage loan applications submitted to types of equity securities, including, without limita- Shawmut's mortgage subsidiary was 16 percent for tion, common stock; preferred stock; American De- African-Americans and 11 percent for whites in the positary Receipts; options; limited partnership units; Boston MSA. This is a substantial improvement over securities issued by closed-end investment companies, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • January 1994 but not securities issued by open-end investment com- also has determined that the conduct of these securities panies; and other direct and indirect equity ownership underwriting and dealing activities is consistent with interests in corporations and other entities. Applicant section 20 of the Glass-Steagall Act (12 U.S.C. § 377), proposes to conduct these activities worldwide. provided that the company engaged in the underwriting Notice of the application, affording interested per- and dealing activities derives no more than 10 percent sons an opportunity to submit comments on the pro- of its total gross revenue from underwriting and dealing posal, has been published (58 Federal Register 52,759 in bank-ineligible securities over any two-year period.4 (1993)). The time for filing comments has expired, and Applicant has committed that Company will conduct its the Board has considered the application and all underwriting and dealing activities with respect to comments received in light of the public interest bank-ineligible securities subject to the 10-percent revfactors set forth in section 4(c)(8) of the BHC Act. enue test, and the prudential limitations established by Chemical, with total consolidated assets of the Board in previous orders.5 $149.4 billion, operates bank subsidiaries in New York, The Board has reviewed the capitalization of Chem- New Jersey, Texas, and Delaware.1 Chemical has re- ical and Company in accordance with the standards set ceived approval from the Federal Reserve System to forth in the Section 20 Orders, and finds the capitaliengage directly and through subsidiaries in a broad zation of each to be consistent with approval. With range of permissible nonbanking activities, including underwriting and dealing in all types of debt securities on a limited basis.2 Company also is, and will continue ment to sell bank-eligible securities through affiliated banks and their to be, a broker-dealer registered with the Securities and subsidiaries would not involve any exclusive arrangements. More- Exchange Commission ("SEC"), and a member of the over, Company's role in underwriting or dealing in the securities that National Association of Securities Dealers, Inc. are being brokered by affiliates would be fully disclosed to the affiliates' brokerage customers, and all such brokerage transactions ("NASD"). Accordingly, Company is subject to the would be conducted on an arm's length basis. The Board previously record-keeping, reporting, fiduciary standards, and has determined that these activities are consistent with the Glassother requirements of the Securities Exchange Act of Steagall Act. See BankAmerica Corporation, 79 Federal Reserve Bulletin 1163 (1993). The Board also notes that the sale by a financial 1934 (15 U.S.C. § 78a et seq.), the SEC, and the institution of uninsured investment products, such as bank-eligible NASD. securities, must comply with applicable regulations and guidelines of the institution's primary federal regulator. The Board has determined that, subject to the pru- 4. See Section 20 Orders. Compliance with the 10-percent revenue dential framework of limitations established in previous limitation shall be calculated in accordance with the method stated in the Section 20 Orders, as modified by the Order Approving Modificadecisions to address the potential for conflicts of intertions to the Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989), ests, unsound banking practices, or other adverse ef- the Order Approving Modifications to the Section 20 Orders, 79 fects, the proposed underwriting and dealing activities Federal Reserve Bulletin 226 (1993), and the Supplement to Order Approving Modifications to Section 20 Orders, 79 Federal Reserve in bank-ineligible securities are so closely related to Bulletin 360 (1993) (collectively, "Modification Orders"). The Board banking as to be proper incidents thereto within the notes that Chemical has not adopted the Board's alternative indexedmeaning of section 4(c)(8) of the BHC Act.3 The Board revenue test to measure compliance with the 10-percent limitation on bank-ineligible securities activities, and, absent such election, will continue to employ the Board's original 10-percent revenue standard. 5. Company also proposes to act as a dealer-manager in connection 1. Asset data are as of September 30, 1993. with cash tender and exchange offer transactions. Dealer-managers 2. See Chemical Banking Corporation, 19 Federal Reserve Bulletin generally act as agent for tender or exchange offerors in arranging or 719 (1993). As used in this order, "bank-ineligible securities" refers to facilitating mergers, acquisitions, and other corporate transactions. all types of debt and equity securities that a bank may not underwrite All-cash tender offers do not, of themselves, involve the issuance, or deal in directly under section 20 of the Glass-Steagall Act public sale, or distribution of securities. Accordingly, all revenues (12 U.S.C. § 377). derived from Company acting as a dealer-manager in connection with 3. See Canadian Imperial Bank of Commerce, 76 Federal Reserve such tender offers may be treated by Company as eligible revenues for Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., 75 purposes of determining compliance with the Board's 10-percent Federal Reserve Bulletin 192 (1989), affd sub nom. Securities Indus- limitation on bank-ineligible securities activities. tries Ass'n v. Board of Governors of the Federal Reserve System, 900 However, exchange offers may entail the public sale or distribution F.2d 360 (D.C. Cir. 1990); Citicorp, et al., 73 Federal Reserve Bulletin of securities where the consideration to be paid for the securities to be 473 (1987), affd sub nom. Securities Industry Ass'n v. Board of acquired comprises, either in whole or in part, securities of the Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir.), cert, purchaser. See Piper v. Chris-Craft Industries, Inc., 430 U.S. 1, 22 denied, 486 U.S. 1059 (1988) (collectively, "Section 20 Orders"). (1976); Federal Reserve System (In Re Bankers Trust and Louisiana Applicant has committed to conduct the proposed underwriting and Land Company), SEC No-Action Letter (May 18, 1984); 5 Loss & dealing activities using the same methods and procedures, and subject Seligman, Securities Regulation 2129 (1990). Accordingly, dealerto the same prudential limitations as those established by the Board in manager revenues derived from Company engaging in a securities the Section 20 Orders. underwriting, or revenues tied to a distribution of securities, must be Applicant proposes for its subsidiary banks and the direct and treated as ineligible revenue for purposes of determining compliance indirect broker-dealer subsidiaries of those banks (including overseas with the Board's 10-percent limitation on bank-ineligible securities broker-dealer subsidiaries of Edge Act subsidiaries of those banks) to activities. Applicant has committed that Company will abide by all the act as a riskless principal or broker for customers in buying and selling section 20 firewalls when acting as a dealer-manager in connection bank-eligible securities that Company underwrites or deals in. There with exchange offers (including partial cash tender/partial exchange would be no employees in common between Company and any of its offers), or when engaging in dealer-manager activities performed in bank affiliates or their subsidiaries. In addition, Company's arrange- connection with any underwriting or dealing activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 51 respect to the capitalization of Company, approval of subject to all the terms and conditions discussed in this the requested activities is limited to a level consistent order and in the Section 20 Orders as modified by the with the projections of position size and types of Modification Orders. The Board's approval of this securities in the application. proposal extends only to activities conducted within The Federal Reserve Bank of New York has re- the limitations of those orders and this order, including viewed the operational and managerial infrastructure the Board's reservation of authority to establish addiof Company, including its computer, audit, and ac- tional limitations to ensure that Company's activities counting systems, and internal risk management pro- are consistent with safety and soundness, conflict of cedures and controls. The Reserve Bank has deter- interest, and other relevant considerations under the mined that Company has established an adequate BHC Act. Underwriting and dealing in any manner operational and managerial infrastructure for the un- other than as approved in this order or the Section 20 derwriting and dealing of equity securities to ensure Orders (as modified by the Modification Orders) is not compliance with the requirements of the Section 20 within the scope of the Board's approval and is not Orders and this order. On the basis of the Reserve authorized for Company. Bank's review and all the facts of record, the Board The Board's determination is also subject to all the has determined that Company has in place the mana- terms and conditions set forth in Regulation Y, includgerial and operational infrastructure and other policies ing those in sections 225.4(d) and 225.23(b), and to the and procedures necessary to comply with the require- Board's authority to require modification or terminaments of the Section 20 Orders and this order. Accord- tion of the activities of a bank holding company or any ingly, the Board concludes that the financial and of its subsidiaries as the Board finds necessary to managerial considerations are consistent with ap- assure compliance with, and to prevent evasion of, the proval of this application. provisions of the BHC Act, and the Board's regula- In order to approve this application, the Board also tions and orders issued thereunder. The Board's decimust determine that the performance of the proposed sion is specifically conditioned on compliance with all activities by Chemical can reasonably be expected to the commitments made in connection with this appliproduce public benefits that would outweigh possible cation, including the commitments discussed in this adverse effects under the proper incident to banking Order and the conditions set forth in the above noted standard of section 4(c)(8) of the BHC Act. Under the Board regulations and orders. These commitments and framework established in this and prior decisions, conditions shall be deemed to be conditions imposed consummation of this proposal is not likely to result in in writing by the Board in connection with its findings any significant adverse effects, such as undue concen- and decisions, and may be enforced in proceedings tration of resources, decreased or unfair competition, under applicable law. conflicts of interests, or unsound banking practices. This transaction shall not be consummated later The Board expects that the de novo entry of Applicant than three months after the effective date of this Order into the market for the proposed services in the United unless such period is extended for good cause by the States would provide added convenience to Chemi- Board or by the Federal Reserve Bank of New York cal's customers, and would increase the level of com- acting pursuant to delegated authority. petition among existing providers of these services. By order of the Board of Governors, effective Accordingly, the Board has determined that the per- November 24, 1993. formance of the proposed activities by Chemical could reasonably be expected to produce public benefits that Voting for this action: Chairman Greenspan, Vice Chairwould outweigh possible adverse effects under the man Mullins, and Governors Angell, Kelley, Lindsey, and proper incident to banking standard of section 4(c)(8) Phillips. Absent and not voting: Governor La Ware. of the BHC Act. JENNIFER J. JOHNSON Accordingly, and for the reasons set forth in the Associate Secretary of the Board Section 20 Orders, the Board concludes that Chemical's proposal to engage through Company in the proposed activities is consistent with the Glass- Comerica Incorporated Steagall Act, and is so closely related to banking as to Detroit, Michigan be a proper incident thereto within the meaning of section 4(c)(8) of the BHC Act, provided Chemical Order Approving Application to Engage in Career limits Company's activities as provided in the Section Counseling Services 20 Orders, as modified by the Modification Orders. On the basis of the record, the Board has deter- Comerica Incorporated, Detroit, Michigan ("Comermined to, and hereby does, approve this application ica"), a bank holding company within the meaning of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • January 1994 the Bank Holding Company Act ("BHC Act"), has (4) Conducting general workshops on the financial applied pursuant to section 4(c)(8) of the BHC Act and aspects of unemployment, current economic trends, section 225.23(a) of the Board's Regulation Y the process of finding a job, and alternative career (12 C.F.R. 225.23(a)) to engage in providing career options; and counseling services to unaffiliated parties through its (5) Providing individual counseling on setting and wholly owned subsidiary, ComeriCOMP, Detroit, obtaining employment goals. Michigan ("ComeriCOMP"). Notice of the application, affording interested per- In order to approve an application submitted pursusons an opportunity to submit comments, has been ant to section 4(c)(8) of the BHC Act, the Board is published (58 Federal Register 16,835 (1993)). The required to determine that the proposed activity is "so time for filing comments has expired, and the Board closely related to banking as to be a proper incident has considered the application and all comments re- thereto."3 In this regard, the Board previously has not ceived in light of the factors set forth in section 4(c)(8) determined that providing career counseling services of the BHC Act. to unaffiliated parties is closely related to banking Comerica, with approximately $27.5 billion in con- under section 4 of the BHC Act and permissible for solidated assets, controls subsidiary banks in Califor- bank holding companies. nia, Michigan, Ohio, Illinois, and Texas, and a savings association in Florida.1 Comerica also engages directly A. Closely Related to Banking Analysis and through subsidiaries in a broad range of permissible nonbanking activities. Under the National Courier test, the Board may find that an activity is closely related to banking for pur- Proposed Career Counseling Activities poses of section 4(c)(8) if the Board concludes that banks generally: ComeriCOMP currently provides career counseling (1) Conduct the proposed activity; services for Comerica and its affiliates, and this pro- (2) Provide services that are operationally or funcposal seeks to expand the provision of these services tionally so similar to the proposed activity as to to unaffiliated companies and individuals in a wide equip them particularly well to provide the proposed array of industries nationwide. Comerica proposes services; or that these career counseling services would involve (3) Provide services that are so integrally related to providing assistance for individuals who are employed the proposed service as to require their provision in and seek advancement in their careers, and individuals a specialized form.4 who are unemployed and seek new employment. ComeriCOMP would provide these services directly to For analytical purposes, Comerica's proposal may companies and advise these companies on effective be viewed in four parts: methods of providing career counseling services to (1) The provision of career counseling services for their employees.2 financial organizations (including banks, bank hold- These career counseling services include: ing companies and their subsidiaries, thrift institu- (1) Assessing an individual's education, prior busi- tions, and thrift holding companies and their subsidness experience, salary history, interests, and skills iaries) and employees of financial organizations; for purposes of finding employment or evaluating (2) The provision of these services for individuals opportunities for career development; who are unemployed or employed outside the bank- (2) Assisting in the preparation of resumes and cover ing industry and who seek employment at banks and letters; other financial organizations; (3) Contacting employers regarding employment op- (3) The provision of career counseling services for portunities and making this information available to individuals seeking financial positions (such as chief clients; financial officer, cash management positions, and accounting and auditing personnel) at any company; and 1. Asset data are as of June 30, 1993. 2. ComeriCOMP will advise unaffiliated organizations on the advantages of including career counseling services as part of a comprehen- 3. 12 U.S.C. § 1843(c)(8). sive employee benefits plan and assist these organizations in estab- 4. See National Courier Association v. Board of Governors, 516 lishing their own facilities to implement career counseling services for F.2d 1229, 1237 (D.C. Cir. 1975) ("National Courier"). The Board their current or former employees. If an organization does not want to also may consider any other factor that an applicant may advance to operate its own career counseling facility, ComeriCOMP would pro- demonstrate a reasonable or close connection or relationship to vide the proposed services directly to the organization's current or banking. 49 Federal Register 794, 806 (1984); Securities Industry former employees at ComeriCOMP's Career Assistance Center. Ass'n v. Board of Governors, 468 U.S. 207, 210-11, n.5 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 53 (4) The provision of career counseling services financial organizations is closely related to banking generally for any individual seeking any type of under the National Courier standard.5 employment at any type of company. 2. Individuals In, or Seeking, Financial Positions at Non-Financial Companies. The Board also believes 1. Career Counseling for Financial Organizations, that bank holding companies have the expertise re- Employees of Financial Organizations, and Individ- quired to provide career counseling services for indiuals Seeking Employment at Financial Organiza- viduals in, or seeking, financial positions at any comtions. Comerica asserts that it has gained extensive pany. Many companies employ financial officers, experience in providing career counseling services to accounting personnel, cash management officers, and displaced employees in the banking industry in con- audit personnel with responsibilities and experience nection with internal reorganizations that have ac- that is nearly identical to their counterparts at financial companied recent mergers and acquisitions by Com- organizations. In addition, banks and bank holding erica. Other banks and bank holding companies also companies often provide these financial services diprovide career counseling services for their employ- rectly to non-financial companies. ees and former employees whose jobs are terminated As a consequence, evaluation of the experience and following similar acquisitions and internal consolida- qualifications of employees in financial positions at tion efforts. The type of expertise required by bank non-financial companies, and of individuals seeking holding companies to provide career counseling ser- career opportunities in these financial positions, would vices internally is operationally and functionally the appear to be within the expertise of bank holding same as that needed to offer career counseling for companies. Based on this financial nexus, the Board employees in other financial organizations. In addi- believes that providing career counseling services for tion, banks and bank holding companies have spe- individuals in, or seeking employment in, these types cialized knowledge about the qualifications of indi- of financial positions, even at non-financial companies, viduals they employ and about the employment is an activity that is closely related to banking. needs of financial organizations. This knowledge 3. Providing Career Counseling Services Generally. equips bank holding companies to provide career Comerica also seeks to provide career counseling counseling services for individuals at any financial services for companies and individuals in areas unreorganization and individuals seeking employment for lated to the banking industry or financial positions. the first time in any financial organization. Comerica argues that providing career counseling ser- The Board believes that employment positions at vices for individuals in any occupation is operationally financial organizations are largely financial in nature. and functionally equivalent to providing career coun- These positions include specialized functions, such seling services for Comerica's own employees. Comas tellers and loan officers, as well as investment erica points out that the career counseling offices of advisors, foreign exchange traders, accounting and banks and bank holding companies often place emaudit personnel, individuals employed in government ployees in non-financial jobs in non-financial compaand securities clearing operations, and similar posi- nies. Comerica also argues that financial organizations tions that involve essentially financial responsibili- employ a significant number of individuals with skills ties. The expertise that a bank holding company has identical to those of employees in commercial compaacquired in providing career counseling for its own nies, such as secretaries, lawyers, and security guards, and Comerica contends that little distinction can be employees in these financial positions, and its ability drawn between providing career counseling services to evaluate the qualifications of individuals seeking to these individuals whether employed by a financial employment in these types of financial positions, organization or by a commercial company. would appear readily transferable to providing these same services for other financial organizations and Moreover, Comerica argues that career counseling individuals seeking employment at financial organi- services are operationally and functionally equivalent zations. to employee benefits consulting activities, which the Because banks generally engage in activities that are operationally and functionally similar to the 5. Financial organizations also employ individuals in nonfinancial proposed career counseling activities, the Board positions, such as secretaries, janitors, security guards, and lawyers. believes that the provision of career counseling ser- These nonfinancial positions typically represent a relatively small percentage of the work force at financial organizations. In this regard, vices for financial organizations (including banks, the Board believes that providing career counseling services for these bank holding companies, thrift institutions, thrift employees of financial organizations or individuals seeking these holding companies, and subsidiaries of any of these positions at financial organizations is a necessary part of providing career counseling services for financial organizations generally, and, companies) and individuals currently employed by, on this basis, is incidental to providing career counseling services for recently displaced from, or seeking employment in financial organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • January 1994 Board has authorized bank holding companies to pro- activity, or the potential clients, because the activity vide. Comerica points out that the Board permits bank itself had a close connection to banking.11 holding companies to provide employee benefits con- The Board does not believe that the record assemsulting services to any company,6 and argues by bled at this time supports a finding that career counanalogy that the Board should similarly permit bank seling services, provided generally, is an activity that holding companies to provide career counseling ser- is closely related to banking. Banks and bank holding vices on behalf of any company to any individual.7 companies do not appear particularly well equipped to In considering whether a proposed activity meets provide career counseling services, for example, for the National Courier standard, the Board has focused scientists, manufacturing personnel, engineering peron the relationship of the proposed activity to banking, sonnel, medical personnel, or other skilled or unskilled finance, and financial matters as establishing the logi- personnel with no connection to banking or finance. cal parameters for expanding the activity.8 In some 4. Conclusion. For these reasons, and based on all areas, such as the provision of data processing and the facts of record, the Board believes that career courier services, the Board has concluded that an counseling services are closely related to banking activity meets the National Courier standard only under the National Courier standard when provided when the activity is restricted to banking or financial for: matters or data.9 In other areas, the Board has limited (1) Financial organizations and individuals currently the types of companies to which bank holding compa- employed by, or recently displaced from, a financial nies may provide a particular service. For example, a organization; bank holding company may provide management con- (2) Individuals who seek employment at a financial sulting advice only to (non-affiliated) bank and non- organization; and bank depository institutions, such as commercial (3) Individuals who are currently employed in, or banks, savings and loan associations, mutual savings who seek, financially related positions at any combanks, and credit unions.10 pany.12 The record at this time does not support a The Board has permitted bank holding companies to finding that career counseling services are otherwise provide nonbanking activities to an unlimited range of closely related to banking.13 customers only when the Board has found that the activity is itself financial in nature (e.g., lending, B. Proper Incident to Banking Analysis leasing, investment advisory services, employee benefits consulting, and trust company functions). In In determining whether an activity is a proper incident these cases there was no need to limit the scope of the to banking, the Board must consider whether the 11. The Board determined that providing employee benefits con- 6. See Norstar Bancorp (Smith, Everett & Associates), 72 Federal sulting is primarily "the provision of financial information." While Reserve Bulletin 729 (1986); Norstar Bancorp (Altman and Brown, career counseling includes providing advice to individuals about Inc.), 71 Federal Reserve Bulletin 656 (1985). Employee benefits employee benefits and may be offered as part of an employee benefits consulting services include providing consulting services to financial package, the actual operation of a career counseling office requires and non-financial customers relating to executive compensation, de- different expertise than employee benefits consulting and arguably fined benefits and contributions, retirement, health care, disability involves providing primarily personnel and job opportunity informaincome, life insurance and "cafeteria plans" which allow employees tion, rather than financial or statistical information. to allocate a certain percentage of the employee's compensation 12. "Financially related" positions include a company's chief among such benefits as the employee may select. financial officer, and employees in the company's finance, accounting, 7. Comerica also suggests that career counseling services unrelated and audit departments. to the banking industry may be considered "incidental" to such 13. In the course of providing career counseling for an individual activities in the banking industry. Under Regulation Y and judicial within one of the three proposed categories, Comerica may, on a decisions construing the phrase "incidental activities," an activity limited basis, provide career counseling services regarding positions must be necessary to the provision of a closely-related activity in outside of these categories as "incidental" to the proposed career order to be considered incidental. 12 C.F.R. 225.21(a)(2); National counseling services. For example, in the course of counseling bank Courier at 1240-41. The record does not support a finding that employees on opportunities outside the banking industry, Comerica Comerica would be unable to offer career counseling services relating will accumulate information about positions at nonfinancial compaonly to the banking industry. nies. Comerica may share this information with individuals who seek 8. See e.g., AmeriTrust Corporation, 72 Federal Reserve Bulletin counseling from Comerica regarding opportunities at financial organi- 794 (1986) (Order approving an application to engage in printing checks zations. As noted above, the Board and the courts have found that an and related documents). activity is "incidental" to an approved activity if the incidental 9. A bank holding company may only provide data processing and activity is necessary to the approved activity. In this situation, the data transmission services if the data to be processed or furnished is provision of counseling services regarding employment at nonfinancial, banking or economic. See 12 C.F.R. 225.25(b)(7). Permissi- financial institutions on a limited basis may be viewed as a necessary ble courier services are limited to the transportation of materials used part of providing counseling for the individual regarding employment in the regular course of business by banks and bank-related firms, and in financial institutions. However, Comerica is not permitted to hold the transportation of financially related economic data. See 12 C.F.R. itself out as a provider of general career counseling services for 225.25(b)(10). individuals seeking career opportunities outside the banking industry or financial careers. 10. See 12 C.F.R. 225.25(b)(ll). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 55 activity "can reasonably be expected to produce ben- First Alabama Bancshares, Inc. efits to the public, such as greater convenience, in- Birmingham, Alabama creased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue Order Approving Applications to Acquire a Savings concentration of resources, or unsound practices."14 Association and Merge Certain Branches into a In this regard, Comerica will provide the proposed Subsidiary Bank career counseling services on a fee basis with no guarantees of employment. There is no evidence in the First Alabama Bancshares, Inc., Birmingham, Alarecord of this case to indicate that the proposed bama ("First Alabama"), a bank holding company activity would lead to any undue concentration of within the meaning of the Bank Holding Company Act resources, unsound banking practices, or other ad- ("BHC Act"), has applied for the Board's approval verse effects. In addition, the record indicates that under section 4(c)(8) of the BHC Act (12 U.S.C. Comerica's de novo entry into this market would § 1843(c)(8)) and section 225.23 of the Board's Reguenhance competition and provide greater convenience lation Y (12 C.F.R. 225.23) to acquire indirectly Secor and increased efficiencies. Bank, F.S.B., Birmingham, Alabama ("Secor"), a For these reasons, the Board believes that Comeri- federally chartered savings bank that operates ca's provision of career counseling services, as de- branches in Alabama, Florida, and Louisiana. First scribed above, is not likely to result in significantly Alabama also has requested Board approval for its adverse effects that would outweigh the public benefits subsidiary bank, First Alabama Bank, Birmingham, of Comerica's proposal. The financial and managerial Alabama ("Bank"), to acquire certain assets and resources of Comerica and ComeriCOMP also are assume certain liabilities of Secor pursuant to section consistent with approval. 5(d)(3) of the Federal Deposit Insurance Act, 12 U.S.C. § 1815(d)(3)(A)(ii) (the "FDI Act"), as Approval of this proposal is specifically conditioned amended by the Federal Deposit Insurance Corporaupon compliance with all commitments made in contion Improvement Act of 1991, Pub. L. No. 102-242, nection with this application. The Board's determina- § 501, 105 Stat. 2236, 2388 (1991).1 Section 5(d)(3) of tion also is subject to all of the conditions set forth in the FDI Act requires the Board to follow the proce- Regulation Y, including those in sections 225.4(d) and dures and consider the factors set forth in the Bank 225.23(b), and to the Board's authority to require Merger Act, 12 U.S.C. § 1828(c), in its evaluation of modification or termination of the activities of a bank applications under section 5(d)(3) of the FDI Act.2 holding company or any of its subsidiaries as the Board finds necessary to assure compliance with, and Notice of this proposal, affording interested persons to prevent evasion of, the provisions of the BHC Act an opportunity to submit comments, has been puband the Board's regulations and orders issued there- lished (58 Federal Register 46,972 (1993)). As required under. For purposes of this action, these commitments by the Bank Merger Act, reports on the competitive and conditions are both considered conditions im- effects of the mergers were requested from the United posed in writing by the Board in connection with its States Attorney General, the Office of the Comptroller findings and decision and, as such, may be enforced in of the Currency, and the Federal Deposit Insurance proceedings under applicable law. These activities shall not be commenced later than three months after the effective date of this Order, unless such period is 1. First Alabama has proposed a two-step transaction to acquire Secor. First Alabama will charter a second-tier holding company and extended for good cause by the Board or by the interim thrift subsidiary ("Interim Thrift") of the second-tier holding Federal Reserve Bank of Chicago, pursuant to dele- company. Interim Thrift and Secor will merge, with Secor surviving gated authority. the merger. Bank will then acquire the assets and assume the liabilities of Secor's Alabama branches, with the exception of Secor's branch in By order of the Board of Governors, effective Cherokee County. Bank's acquisition of the Alabama assets and November 8, 1993. liabilities of Secor is subject to approval by the Federal Deposit Insurance Corporation ("FDIC") under section 5(d)(3) of the FDI Act as well as the Bank Merger Act. 12 U.S.C. §§ 1815(d)(3)(A)(i). Voting for this action: Chairman Greenspan and Governors Secor's branches in Florida and Louisiana will operate as a thrift Angell, Kelley, La Ware, Lindsey, and Phillips. Absent and subsidiary of First Alabama. In this regard, the Board has previously not voting: Vice Chairman Mullins. determined that neither the BHC Act nor the Board's regulations prohibit a bank holding company from owning a thrift institution that operates interstate branches pursuant to applicable laws, including JENNIFER J. JOHNSON regulations issued by the Office of Thrift Supervision. National Associate Secretary of the Board Commerce Bancorporation, 79 Federal Reserve Bulletin 890 (1993). 2. These factors include considerations relating to the effects of the proposal on competition, the financial and managerial resources and future prospects of the existing and proposed institutions, and the convenience and needs of the communities to be served. 12 U.S.C. 14. 12 U.S.C. § 1843(c)(8). § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1994 Corporation. The time for filing comments has ex- markets ("market deposits") as measured by the pired, and the Board has considered the applications Herfindahl-Hirschman Index ("HHI"),8 and certain and all comments received in light of the factors set commitments made by First Alabama. forth in section 4(c)(8) of the BHC Act and in the Bank In the Cherokee County banking market,9 First Merger Act. Alabama would become the largest depository institu- The Board has determined that the operation of a tion upon consummation of this proposal, controlling savings association by a bank holding company is deposits of $68.1 million, representing approximately closely related to banking for purposes of section 52 percent of total market deposits. The HHI would 4(c)(8) of the BHC Act.3 The Board requires that increase 832 points to 3857. Moveover, the record in savings associations acquired by bank holding compa- this case indicates that consummation of this proposal nies conform their direct and indirect activities to would eliminate one of only four financial institutions those permissible for bank holding companies under that currently compete in this highly concentrated section 4(c)(8) of the BHC Act and Regulation Y. First market, and that this rural banking market does not Alabama has committed to conform all activities of appear to be particularly attractive for entry. Secor to these requirements.4 In order to mitigate the adverse competitive effects First Alabama, with consolidated assets of approx- that would otherwise result from consummation of this imately $8.1 billion, controls five subsidiary banks in proposal, First Alabama has committed to divest Se- Alabama, Florida, Georgia, and Tennessee.5 Secor cor's only branch in the Cherokee County banking operates branches in Alabama, Florida, and Louisi- market, with deposits of approximately $19.3 million, ana. Upon consummation of the transaction, First to a buyer that does not currently operate in this Alabama would become the largest commercial bank- market.10 The divestiture of this branch of Secor to an ing organization in Alabama, controlling deposits of organization not currently operating in this market approximately $6.5 billion, representing approxi- would preserve the number of depository institutions mately 18.4 percent of the deposits in commercial that compete in this market. Based on all the facts of banks in the state.6 record, including the commitments made by First Alabama,11 the Board concludes that consummation of Competitive Considerations Under section 4(c)(8) of the BHC Act and under the indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See WM Ban- Bank Merger Act, the Board is required to consider corp, 76 Federal Reserve Bulletin 788 (1990); National City Corporathe competitive effects of this transaction. In this tion, 70 Federal Reserve Bulletin 743 (1984). Because the deposits of regard, First Alabama and Secor compete directly in Secor's Alabama branches would be transferred to a commercial bank under this proposal, those deposits are included at 100 percent in the the following banking markets in Alabama: Birmingcalculation of pro forma market share. See Norwest Corporation, 78 ham Area, Cherokee County, Dallas County, Hunts- Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal ville Area, Mobile Area, Montgomery MSA, and Tus- Reserve Bulletin 669 (1990). 8. Under the revised Department of Justice Merger Guidelines, 49 caloosa County. The Board has carefully considered Federal Register 26,823 (June 29, 1984), a market in which the the effects that consummation of this proposal would post-merger HHI is above 1800 is considered to be highly concenhave on competition in these banking markets in light trated. In such markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points. The Justice of all the facts of record, including the characteristics Department has informed the Board that a bank merger or acquisition of these markets, the increase in the concentration of generally will not be challenged (in the absence of other factors total deposits in depository institutions7 in these indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders 3. See 12 C.F.R. 225.25(b)(9). and other non-depository financial entities. 4. Secor engages through subsidiaries in insurance agency activities 9. The Cherokee County banking market is approximated by and real estate activities that would not be permissible for a bank Cherokee County, Alabama. holding company under the BHC Act. First Alabama has committed 10. The record in this case indicates that the sale of this branch to to terminate all impermissible insurance and real estate activities either of the other two depository institutions currently operating in within two years of consummation of the proposal. During this the Cherokee County banking market would significantly exceed the two-year period, First Alabama has also committed to limit Secor's Department of Justice Merger Guidelines. insurance activities to renewals of existing policies and not to begin or 11. First Alabama has committed to submit to the Board, prior to enter into any new real estate activities or projects. consummation of its acquisition of Secor, a binding contract accept- 5. Asset data are as of June 30, 1993. able to the Board for the sale of this branch. First Alabama also has 6. State deposit data are as of June 30,1993 ; market deposit data are committed that if it does not execute such a contract before consumas of June 30, 1992. mation, First Alabama will transfer this branch to an independent 7. In this context, depository institutions include commercial banks, trustee upon consummation, who will be authorized to supervise the savings banks, and savings associations. Market share data before operations of this thrift branch and instructed to promptly find a consummation are based on calculations in which the deposits of thrift suitable buyer. First Alabama also has committed to submit to the institutions are included at 50 percent. The Board previously has Board, prior to consummation of the acquisition, an executed trust Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 57 this proposal would not result in significantly adverse in significantly adverse effects on competition in the effects on competition in the Cherokee County Bank- Tuscaloosa County banking market. ing market. In the Birmingham Area, Dallas County, Hunts- In the Tuscaloosa County banking market,12 First ville Area, Mobile Area, and Montgomery MSA Alabama would become the largest depository institu- banking markets, consummation would result in tion, controlling deposits of $458.9 million, represent- slight increases in the concentration of market deing approximately 38.2 percent of market deposits. posits that do not exceed the Department of Justice's The HHI would increase by 428 points to 2595. How- merger guidelines. Based on all the facts of record, ever, a number of factors indicate that the increase in the Board concludes that consummation of this proconcentration levels in the Tuscaloosa County banking posal would not result in significantly adverse effects market as measured by the HHI tends to overstate the on competition in any of these banking markets. competitive effects of this proposal. For example, In light of the relatively small increases in concenupon consummation of this proposal, ten depository tration, the competition offered by other depository institutions would remain in the market, including five institutions, certain market characteristics, the procommercial bank subsidiaries of multi-state bank hold- posed divestiture, and all of the facts of record, the ing companies that each have total assets exceeding Board concludes that consummation of this proposal $5 billion. In addition, credit unions actively compete would not have a significantly adverse effect on comin the market.13 The Tuscaloosa County banking mar- petition or the concentration of banking resources in ket also has a number of features that make it attrac- any of the relevant banking markets in which First tive for entry, including population growth, deposit Alabama and Secor compete. growth, and the level of population per banking office.14 Other Considerations In addition, the legal barriers to entry for the market are low. Alabama permits statewide branch- The other factors the Board must consider under the ing, and is part of the Southeast Regional Banking Bank Merger Act, including the financial and mana- Pact,15 which allows bank holding companies in other gerial resources and future prospects of First Ala- Southeast Regional Pact states to acquire banks in bama and Secor and their subsidiaries, and the Alabama. Two banking organizations have entered convenience and needs of the communities to be the market by acquisition since 1992 and two have served, also are consistent with approval of this entered the market de novo since 1988. The HHI for proposal. commercial banks in the Tuscaloosa County banking The Board has also reviewed the factors relevant market has decreased by 186 points since June 30, under section 4(c)(8) of the BHC Act. The record 1989. In light of all the facts of record, including the does not indicate that consummation of this proposal characteristics of this market, the Board concludes is likely to result in any significantly adverse effects, that consummation of this proposal would not result such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices that are not likely to be outweighed by the public benefits of this proposal. agreement acceptable to the Board stating the terms of this divestiture. The Board's action on these applications is expressly condi- Accordingly, the Board has determined that the tioned upon compliance with these commitments. balance of public interest factors it must consider 12. The Tuscaloosa County banking market is approximated by Tuscaloosa County and the city of Moundville in Hale County, under section 4(c)(8) of the BHC Act is favorable and Alabama. consistent with approval of the application. 13. Credit unions in the Tuscaloosa County market control approx- The Board also has considered the specific factors it imately 16.8 percent of the deposits in commercial banks, thrifts, and credit unions in the market, which is well above the national average must review under section 5(d)(3) of the FDI Act, and of approximately 5 percent. The membership requirements for the five the record in this case reflects that: largest credit unions in the market are liberal, and credit unions serve (1) The transaction will not result in the transfer of approximately 39 percent of Tuscaloosa County's population. 14. Tuscaloosa County's population increase between 1980 and any federally insured depository institution's federal 1990 (9.5 percent), deposit growth between June 1989 and June 1992 deposit insurance from one federal deposit insur- (18.9 percent), and total population per banking office all exceed the ance fund to the other; average for MSA markets in Alabama. Strong growth in the Tuscaloosa County banking market is expected to continue in part due to (2) First Alabama and Bank currently meet and upon an estimated 13,000jobs to be created by a new automobile plant to be consummation of the proposed transaction will conbuilt by Mercedes-Benz AG in the vicinity. tinue to meet, all applicable capital standards; and 15. The Alabama Regional Reciprocal Banking Act of 1986 defines the "region" to include Alabama, Arkansas, Florida, Georgia, Ken- (3) Because Bank is located in Alabama and is tucky, Louisiana, Maryland, Mississippi, North Carolina, South acquiring certain assets and assuming certain liabil- Carolina, Tennessee, Virginia, West Virginia, and the District of Columbia. Ala. Code § 5-13A-2(10) (Supp. 1987). ities of the branches of Secor located in Alabama, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Federal Reserve Bulletin • January 1994 the proposed transaction would comply with the Orders Issued Under Sections 3 and 4 of the Douglas Amendment if the Alabama branches of Bank Holding Company Act Secor were a state bank that First Alabama was applying to acquire directly. See 12 U.S.C. The Colonial BancGroup, Inc. § 1815(d)(3). Montgomery, Alabama Order Approving Applications to Acquire a Bank Based on the foregoing and all the facts of record, and a Savings Association the Board has determined that the applications should be, and hereby are, approved. The Board's approval The Colonial BancGroup, Inc., Montgomery, Alaof this proposal is specifically conditioned on complibama ("BancGroup"), a bank holding company within ance by First Alabama with the commitments made in the meaning of the Bank Holding Company Act connection with its applications, as supplemented, ("BHC Act"), has applied under section 3 of the including compliance with First Alabama's commit- BHC Act (12 U.S.C. § 1842) to acquire Colonial Bank ments relating to its divestiture of Secor's Cherokee of Tennessee, Ardmore, Tennessee ("Colonial- County branch. In addition, the Board's approval is Tennessee"). BancGroup also has applied under secconditioned upon First Alabama's submitting to the tion 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) Board before consummation of the acquisition of and section 225.23 of the Board's Regulation Y Secor all required agreements, including an executed (12 C.F.R. 225.23) to acquire by merger First AmFed trust agreement, necessary to complete an effective Corporation, Huntsville, Alabama ("First AmFed"), a divestiture under the BHC Act. The commitments and savings and loan holding company, and thereby indiconditions relied on by the Board in reaching this rectly acquire First AmFed's wholly owned subsidiary decision are deemed to be conditions imposed in savings association, First American Federal Savings writing by the Board in connection with its findings and Loan Association, Huntsville, Alabama ("Assoand decision, and as such, may be enforced in prociation"). ceedings under applicable law. This approval is also conditioned upon First Alabama's receiving all neces- In addition, BancGroup has applied for Colonialsary federal and state approvals, and Bank's receiving Tennessee to acquire the Tennessee assets and assume the requisite approval of its primary federal regulator the Tennessee liabilities of the Association pursuant to under the Bank Merger Act. section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. § 1815(d)(3)) ("FDI Act"), as amended by The Board's determination also is subject to all the the Federal Deposit Insurance Corporation Improveconditions set forth in Regulation Y, including those in ment Act of 1991, Pub L. No. 102-242, § 501, 105 Stat. sections 225.4(d) and 225.23(b)(3), and to the Board's 2236, 2388 (1991) ("FDICIA"). BancGroup also has authority to require modification or termination of the applied under section 5(d)(3) of the FDI Act, as activities of a bank holding company or any of its amended by FDICIA, for its wholly owned state subsidiaries as the Board finds necessary to assure nonmember subsidiary bank, Colonial Bank, Montcompliance with, and to prevent evasion of, the progomery, Alabama ("Colonial Bank"), to acquire by visions and purposes of the BHC Act and the Board's merger the remaining assets and assume the remaining regulations and orders issued thereunder. liabilities of the Association.1 Section 5(d)(3) of the The transaction pursuant to section 5(d)(3) of the FDI Act requires the Board to review the transfer of FDI Act shall not be consummated before the thirtieth such assets and liabilities to a bank holding company's calendar day following the effective date of this Order, subsidiary bank that is a Bank Insurance Fund memand neither transaction shall be consummated later ber, and in reviewing these proposals, to follow the than three months after the effective date of this procedures and consider the factors set forth in section Order, unless such period is extended for good cause 18(c) of the FDI Act (12 U.S.C. § 1828(c)) ("the Bank by the Board or by the Federal Reserve Bank of Merger Act"). 12 U.S.C. § 1815(d)(3)(E).2 Atlanta, acting pursuant to delegated authority. By order of the Board of Governors, effective November 22, 1993. 1. The acquisition and assumption of assets and liabilities of the Association is also subject to review under the FDI Act and the Bank Voting for this action: Chairman Greenspan, Vice Chair- Merger Act by the Federal Deposit Insurance Corporation ("FDIC"), man Mullins, and Governors Angell, Kelley, Lindsey, and which is the primary banking regulator for Colonial-Tennessee and Phillips. Absent and not voting: Governor La Ware. Colonial Bank. 12 U.S.C. § 1828(c). 2. These factors include considerations relating to competition, financial and managerial resources, and future prospects of the JENNIFER J. JOHNSON existing and proposed institutions, and the convenience and needs of Associate Secretary of the Board the communities to be served. 12 U.S.C. § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 59 Notice of the applications, affording interested per- in which [the] bank is located, by language to that sons an opportunity to submit comments, has been effect and not merely by implication." The Board published (58 Federal Register 48,066 and 48,523 previously has concluded that the laws of Tennessee (1993)). Reports on the competitive effects of the expressly authorize the acquisition of Tennessee merger were requested from the United States Attor- banks by Alabama bank holding companies.6 ney General, the Office of the Comptroller of the BancGroup and First AmFed compete in the Hunts- Currency, the FDIC, and the Office of Thrift Supervi- ville Area banking market and the Jackson County sion. The time for filing comments has expired, and the banking market in Alabama.7 Upon consummation of Board has considered the application and all com- this proposal, BancGroup would become the third ments received in light of the factors set forth in largest depository institution in the Huntsville Area sections 3(c) and 4(c)(8) of the BHC Act, the Bank banking market, controlling $437.8 million in deposits Merger Act, and section 5(d)(3) of the FDI Act. in depository institutions in the market ("market de- The Board has determined that the operation of a posits"), representing approximately 18.3 percent of savings association by a bank holding company is market deposits.8 BancGroup would also become the closely related to banking for purposes of section third largest depository institution in the Jackson 4(c)(8) of the BHC Act.3 In making this determination, County banking market, controlling $63.4 million in the Board has required that savings associations ac- deposits, representing approximately 17.4 percent of quired by bank holding companies conform their direct market deposits. Both markets would remain moderand indirect activities to those permissible for bank ately concentrated under the Department of Justice's holding companies under section 4(c)(8) of the BHC Merger Guidelines.9 Based on all the facts of record in Act. BancGroup has committed that it will not, as a this case, including the resulting market shares, the result of this transaction, engage in any activities not relatively small change in market concentration meapermitted for bank holding companies under section sured by the HHI, and the number of competitors 4(c)(8) of the BHC Act and the Board's Regulation Y.4 BancGroup is the fifth largest commercial banking organization in Alabama, controlling deposits of ap- 6. AmSouth Bancorporation, 76 Federal Reserve Bulletin 957 proximately $1.5 billion, representing 4.5 percent (1990); South Trust of Tennessee, Inc., 74 Federal Reserve Bulletin 779 (1988). The Tennessee Commissioner of Financial Institutions has of total deposits in commercial banking organizations confirmed that the proposal complies with the provisions of the in the state.5 First AmFed controls deposits of Tennessee interstate banking statute, including the five-year longevity requirement at Tenn. Code Ann. § 45-12-103(b)(2). The Tennessee $288.8 million, representing less than 1 percent of the Commissioner has not approved the proposal, however, and the total deposits in commercial banking organizations in Board's approval is conditioned upon BancGroup's obtaining the the state. Upon consummation of the proposed trans- necessary state approvals. 7. The Huntsville Area banking market consists of Madison and action, BancGroup would remain the fifth largest Limestone Counties, excluding the city of Ardmore, Alabama. The commercial banking organization in Alabama, control- Jackson County banking market is delineated by Jackson County, ling deposits of approximately $1.8 billion, represent- Alabama. 8. Market data are as of June 30, 1992. In this context, depository ing approximately 5 percent of the total deposits in institutions include commercial banks, savings banks, and savings commercial banking organizations in the state. In associations. Market share data before consummation are based on addition, BancGroup would acquire $97.1 million in calculations in which the deposits of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions Tennessee deposits, making it the 50th largest bank have become, or have the potential to become, significant competitors holding company in that state. of commercial banks. See , WM Bancorp, 16 Federal Reserve Bulletin 788 (1990); National City Corporation, 70 Federal Reserve Bulletin Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)), 743 (1984). Because the deposits of the Association will be transferred the Douglas Amendment, prohibits the Board from to a commercial bank under this proposal, those deposits are included approving an application by a bank holding company at 100 percent in the calculations of pro forma market share. See, Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First to acquire control of any bank located outside of the Banks, Inc., 76 Federal Reserve Bulletin 669, 670 n.9 (1990). holding company's home state, unless such acquisition 9. Under the revised Department of Justice Merger Guidelines, 49 is "specifically authorized by statute laws of the state Federal Register 26,823 (June 29, 1984), a market in which the post-merger Herfindahl-Hirschman Index ("HHI") is between 1000 and 1800 is considered moderately concentrated. The Justice Department has informed the Board that a bank merger or acquisition 3. 12 C.F.R. 225.25(b)(9). generally will not be challenged (in the absence of other factors 4. Association engages through subsidiaries in real estate and indicating anti-competitive effects) unless the post-merger HHI is at insurance agency activities that would not be permissible for a bank least 1800 and the merger increases the HHI by more than 200 points. holding company under the BHC Act. BancGroup has committed to The Justice Department has stated that the higher than normal HHI terminate all impermissible real estate and insurance activities within thresholds for screening bank mergers for anti-competitive affects two years of consummation of the proposal. During this two-year implicitly recognize the competitive effect of limit-purpose lenders period, BancGroup has also committed to limit such insurance activ- and other non-depository financial institutions. Upon consummation ities to renewals of existing policies and not to begin or enter into any of the proposal, the HHI in the Huntsville Area banking market would new real estate activities or projects. increase by 63 points to 1707 while the HHI in the Jackson County 5. Bank deposit and state deposit data are as of June 30, 1992. banking market would not increase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 Federal Reserve Bulletin • January 1994 remaining in these markets, the Board concludes that factor in the consideration of an institution's CRA consummation of this proposal would not have a record, and that these reports will be given great significantly adverse effect on competition or the con- weight in the application process.12 The record in this centration of banking resources in the Huntsville Area case indicates that BancGroup's subsidiary bank, Coor Jackson County banking market, or in any other lonial Bank, received a "satisfactory" rating for CRA relevant banking market. performance from its primary regulator, the FDIC, in March 1993. The Association also received a "satis- Convenience and Needs Considerations factory" rating for CRA performance from the Office of Thrift Supervision in April 1993. In acting on an application to acquire a depository institution under the BHC Act and an application B. Lending Practices in Montgomery MSA under section 5(d) of the FDI Act, the Board must consider the convenience and needs of the communi- The Board has reviewed carefully the Home Mortties to be served, and take into account the records of gage Disclosure Act (12 U.S.C. § 2801 et seq.) the relevant depository institutions under the Commu- ("HMDA") data reported by Colonial Bank, espenity Reinvestment Act (12 U.S.C. § 2901 et seq.) cially with respect to the Montgomery Metropolitan ("CRA"). The CRA requires the federal financial Statistical Area ("MSA"), in light of Protestant's supervisory agencies to encourage financial institu- comments. The data for the Montgomery MSA retions to help meet the credit needs of the local com- flect mixed results. For example, as a percentage of munities in which they operate, consistent with the overall housing-related loan applications and originasafe and sound operation of such institutions. To tions, the number of applications from and originaaccomplish this end, the CRA requires the appropriate tions to minorities by Colonial Bank generally exfederal supervisory authority to "assess the institu- ceed the aggregate percentage for other lenders in the tion's record of meeting the credit needs of its entire Montgomery MSA. However, these data also indicommunity, including low- and moderate-income cate some disparities in rates of approvals and denineighborhoods, consistent with the safe and sound als of housing-related loan applications that vary by operation of such institution," and to take that record racial and ethnic group and a small number of appliinto account in its evaluation of bank holding company cations and originations for housing-related lending. applications.10 Because all banks are obligated to ensure that their The Board has received comments criticizing Banc- lending practices are based on criteria that assure not Group's record of performance under the CRA from only safe and sound lending, but also assure equal the Alabama Community Reinvestment Alliance, Bir- access to credit by creditworthy applicants regardmingham, Alabama ("Protestant"). Protestant gener- less of race, the Board is concerned when the record ally alleges that BancGroup has not met the conve- of an institution indicates disparities in lending to nience and needs of low-income African-American minority applicants. The Board recognizes, however, residents in Montgomery County and Montgomery, that HMDA data alone provide only a limited mea- Alabama. sure of any given institution's lending in its commu- The Board has carefully reviewed the CRA perfor- nity. The Board also recognizes that HMDA data mance records of BancGroup, First AmFed, and their have limitations that make the data an inadequate subsidiaries, as well as comments received on these basis, absent other information, for conclusively applications; BancGroup's responses to those com- determining whether an institution has engaged in ments; and all other relevant facts of record, in light of illegal discrimination on the basis of race or ethnicity the CRA, the Board's regulations, and the Statement in making lending decisions. of the Federal Financial Supervisory Agencies Re- In this regard, the FDIC determined at the March garding the Community Reinvestment Act ("Agency 1993 examination of Colonial Bank that the bank's CRA Statement").11 loan policies and procedures did not reveal any practices intended to discourage applications for credit, A. CRA Performance Examinations and examiners found no evidence of prohibited discriminatory or other illegal credit practices. The bank The Agency CRA Statement provides that a CRA was also found to be complying with the substantive examination is an important, and often controlling, provisions of the anti-discrimination laws and regulations. In addition, examiners found that the geographic 10. 12 U.S.C. § 2903. 11. 54 Federal Register 13,742 (1989). 12. 54 Federal Register at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 61 distribution of Colonial Bank's credit extensions, ap- loans and $128.5 million in total outstanding small plications and denials appeared reasonable. business loans. The HMDA data indicate that Colonial Bank is not Colonial Bank also actively participates in several an active home mortgage lender in the Montgomery governmentally insured loan programs for housing, MSA. BancGroup maintains that Colonial Bank nor- small farms, and small businesses and has outstanding mally refers long-term fixed rate mortgage borrowers over 200 Small Business Administration loans amountin the Montgomery MSA to several mortgage compa- ing to approximately $10 million. Colonial Bank pronies including a mortgage company wholly owned by vides financing to local developers who build singleshareholders of BancGroup.13 The Board notes that family or multi-family housing in low- and moderatethe CRA does not require an institution to make income areas. Its records indicate that it has 277 such specific types of credit available or limit an institu- loans outstanding, totalling $28.9 million as of March tion's discretion to develop the types of products and 1993. services that it believes are best suited to its expertise In Birmingham, Colonial Bank participates with and business objectives and to the needs of its partic- other financial institutions and the city in the Birmingular community. ham Mortgage Plan, which offers loans for the pur- In the Montgomery MSA, Colonial Bank engages chase of a home with no origination fee and a reduced primarily in commercial and consumer lending. Colo- down payment of 3 percent. This plan was primarily nial Bank offers a variety of lending products in the funded with $1.5 million from Colonial Bank and other Montgomery MSA to assist in meeting the credit needs financial institutions in Birmingham. Colonial Bank of low- and moderate-income borrowers. These in- also is participating in the formation of the Wallace clude consumer loans, commercial real estate loans Housing Plan, which is coordinated by the Alabama and other commercial loans. During the first nine Treasurer's Office and is designed to provide help and months of 1993, Colonial Bank originated 1,753 loans financing for the purchase of homes by low- and of all types, totalling $71.4 million, in low- and moderate-income families. moderate-income areas in its delineated Montgomery The record also indicates that Colonial Bank has put district, which represented 33 percent of the dollar in place the types of policies outlined in the Agency amount of the bank's loans in the Montgomery dis- CRA Statement that contribute to an effective CRA trict, which includes Montgomery County. For exam- program. Although primary responsibility for monitorple, Colonial Bank originated 264 loans, totalling ing CRA compliance has been assigned to the CRA $4.2 million, in low- and moderate-income areas in the Committee for each geographical area served by Co- Montgomery MSA during the first ten months of 1993. lonial Bank, the board of directors has established a The bank's total loan originations during this period corporate CRA policy and reviews the performance of included 134 loans for agricultural production, total- each CRA Committee. In addition, the board of direcling $2.2 million; and 77 loans secured by farm land, tors has appointed a CRA officer responsible for totalling $18.6 million. the bank's overall CRA program. The CRA officer has developed a CRA program that addresses the bank's C. Other Lending and CRA Related Programs CRA goals and objectives, and requires selfassessment of CRA performance. In its other delineated communities, Colonial Bank offers a variety of products and services, such as D. Conclusion Regarding the Convenience and first-time real estate mortgage loans, rehabilitation Needs Factor loans, small business loans, and home improvement loans, that are specifically designed to help meet the In reviewing the convenience and needs factor under credit needs of its communities, including low- and the BHC Act, the Board has carefully considered the moderate- income neighborhoods. As of March 1993, entire record of this application, including comments Colonial Bank's total outstanding loans to low- and filed in this case, responses by Colonial Bank, and the moderate-income consumers for residential pur- bank's recent CRA examination. Based on this rechase, construction, or improvement (including sin- view, the Board believes that the record of perforgle family dwellings, mobile homes, and condomini- mance by BancGroup and Colonial Bank to help meet ums) numbered 2889, totalling $73.5 million. The the credit needs of all segments of the communities bank had $22.5 million in total outstanding small farm they serve, including low- and moderate-income and minority communities, are consistent with approval. The Board recognizes, however, that some disparities in lending to low- and moderate-income areas exist, 13. 1992 HMDA data indicate that this mortgage company was the but notes that the bank is in the process of fully second largest reporting lender in the Montgomery MSA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Federal Reserve Bulletin • January 1994 implementing a geographic analysis of its lending The evidence of record does not indicate that approval patterns. of the proposed acquisition of shares of First AmFed In this regard, the Board will continue to monitor would result in any significantly adverse effects, such BancGroup's efforts in meeting the credit needs of all as undue concentration of resources, decreased or its communities, including low- and moderate-income unfair competition, conflicts of interests, or unsound and minority neighborhoods, and will consider those banking practices that are not outweighed by public efforts in future applications. The Board has also benefits. Accordingly, the Board has determined that directed the Federal Reserve Bank of Atlanta ("Re- the balance of public interest factors that the Board serve Bank") to monitor BancGroup's progress in must consider under section 4(c)(8) of the BHC Act is addressing these disparities. As a condition of the favorable and consistent with approval of Banc- Board's action in this case, BancGroup must submit Group's application to acquire First AmFed. quarterly reports to the Reserve Bank that describe BancGroup's progress in correcting these weaknesses Conclusion in CRA performance. Based on all the facts of record, the Board concludes that convenience and needs considerations, including the CRA performance of Banc- Based on the foregoing and all the facts of record, the Group, First AmFed, and their subsidiary institutions, Board has determined that these applications should are consistent with approval of this application.14 be, and hereby are, approved. This approval is subject to Colonial Bank's and Colonial-Tennessee's each obtaining the required approval of the appropriate Other Considerations Federal banking agency for the proposed merger under the Bank Merger Act. The Board's approval of these The Board also concludes that the financial and manapplications also is expressly conditioned upon Bancagerial resources and future prospects of BancGroup, Group's compliance with the commitments made in its subsidiary banks, and the Association, and other connection with these applications. In addition, the supervisory factors the Board must consider under Board's determination is subject to all of the condisection 3 of the BHC Act, are consistent with aptions set forth in Regulation Y, including those in proval. Moreover, the record in this case shows that: sections 225.24(d) and 225.23(b)(3), and to the Board's (1) The transaction will not result in the transfer of authority to require modification or termination of the any federally insured depository institution's federal activities of a bank holding company or any of its deposit insurance from one federal deposit insursubsidiaries as the Board finds necessary to assure ance fund to the other; compliance with, and to prevent evasion thereof, the (2) BancGroup, Colonial Bank and Colonialprovisions and purposes of the BHC Act and the Tennessee will meet all applicable capital standards Board's regulations and orders issued thereunder. For upon consummation of the proposed transactions; purposes of this action, the commitments and condiand tions relied on in reaching this decision are both (3) The proposed transaction would comply with the conditions imposed in writing by the Board, and, as Douglas Amendment if the Association were a state such, may be enforced in proceedings under applicable bank that BancGroup was applying to acquire dilaw. rectly (see 12 U.S.C. § 1815(d)(3)). The acquisition of Colonial-Tennessee may not be consummated before the thirtieth calendar day after the effective date of this Order, and the acquisition of 14. Protestant has requested that the Board hold a public meeting or Colonial-Tennessee and First AmFed may not be hearing on this application. The Board is not required under section 3(b) of the BHC Act to hold a hearing on an application unless the consummated later than three months after the effecappropriate banking authority for the bank to be acquired makes a tive date of this Order, unless such period is extended timely written recommendation of denial of the application. In this by the Board or by the Reserve Bank, acting pursuant case, the Tennessee state banking authorities have not recommended denial of the proposal. to delegated authority. Generally, under the Board's rules, the Board may, in its discretion, By order of the Board of Governors, effective hold a public hearing or meeting on an application to clarify factual issues related to the application, and to provide an opportunity for November 29, 1993. 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 Voting for this action: Chairman Greenspan, Vice Chairsubmissions, and have submitted written comments that have been man Mullins, and Governors Angell, Kelley, La Ware, Lindconsidered by the Board. On the basis of all the facts of record, the sey, and Phillips. Board has determined that a public meeting or hearing is not necessary to clarify the factual record in this application, or otherwise warranted in this case. Accordingly, the request for a public meeting or hearing JENNIFER J. JOHNSON on this application is hereby denied. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 63 ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By the Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Acquiring Approval Bank Holding Company Thrift Bank(s) Date AmSouth Bancorporation, First Federal Savings AmSouth Bank of November 10, 1993 Birmingham, Alabama Bank, Georgia, Calhoun, Georgia Summerville, Georgia AmSouth Bancorporation, FloridaBank, F.S.B., AmSouth Bank of November 10, 1993 Birmingham, Alabama Jacksonville, Florida Florida, Pensacola, Florida Fifth Third Bancorp, First Financial Savings Fifth Third Bank of November 1, 1993 Cincinnati, Ohio Association, F.A., Western Ohio, Cincinnati, Ohio N.A., Piqua, Ohio Fifth Third Bancorp, World Savings and Loan Fifth Third Bank of November 8, 1993 Cincinnati, Ohio Association, Western Ohio, Oakland, California N.A., Piqua, Ohio Fifth Third Bank of Northwestern Ohio, N.A., Toledo, Ohio SouthTrust Corporation, First Federal Savings SouthTrust of November 5, 1993 Birmingham, Alabama Bank of Georgia, F.A., Georgia, Inc., Winder, Georgia Atlanta, Georgia APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) ^ ate Keystone Financial, Inc., WM. Bancorp, November 29, 1993 Harrisburg, Pennsylvania Cumberland, Maryland NBC Capital Corporation, Charter Holding November 26, 1993 Starkville, Mississippi Company, Inc., Tuscaloosa, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • January 1994 Section 4 Effective Applicants) Bank(s) Date First of America Bank First of America November 15, 1993 Corporation, Mortgage Company, Kalamazoo, Michigan Kalamazoo, Michigan FOA Mortgage Company, Kalamazoo, Michigan Keystone Financial, Inc., Keystone Brokerage, November 24, 1993 Harrisburg, Pennsylvania Inc., Williamsport, Pennsylvania National Commerce Commerce Finance November 26, 1993 Bancorporation, Company, Memphis, Tennessee Germantown, Tennessee 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 1889 Bancshares, Inc., The First National Bank Kansas City October 28, 1993 Nevada, Missouri of Nevada, Nevada, Missouri Allied Bank Capital, Inc., Peoples Savings Bank, Richmond November 19, 1993 Sanford, North Carolina Inc., SSB, Wilmington, North Carolina American Chartered Bancorp II, American Chartered Bank Chicago November 1, 1993 Lake Zurich, Illinois of Lake Zurich, Lake Zurich, Illinois AmSouth Bancorporation, Citizens National Atlanta November 10, 1993 Birmingham, Alabama Corporation, Naples, Florida AmSouth Bancorporation, First Sunbelt Bancshares, Atlanta November 10, 1993 Birmingham, Alabama Inc., Rome, Georgia AmSouth Bancorporation, Parkway Bancorp, Inc., Atlanta November 10, 1993 Birmingham, Alabama Fort Myers, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 65 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date BancFirst, Security Bank, Kansas City November 5, 1993 Oklahoma City, Oklahoma Coweta, Oklahoma First American Bank, Stratford, Oklahoma United Community Bank, Weathorford, Oklahoma BancFirst Corporation, Coweta Bancshares, Inc., Kansas City November 5, 1993 Oklahoma City, Oklahoma Coweta, Oklahoma First Stratford Bancorporation, Inc., Stratford, Oklahoma Weathorford Bancorporation, Inc., Weathorford, Oklahoma Banc One Corporation, Banc One Wisconsin Cleveland November 8, 1993 Columbus, Ohio Corporation, Milwaukee, Wisconsin First Financial Associates, Inc., Kenosha, Wisconsin Banterra Corp., First of Murphysboro St. Louis November 19, 1993 Eldorado, Illinois Corp., Murphysboro, Illinois Barrett Holding Company, Watonga Bancshares, Kansas City November 23, 1993 Watonga, Oklahoma Inc., Watonga, Oklahoma BB&T Financial Corporation, Citizens Savings Bank, Richmond November 17, 1993 Wilson, North Carolina SSB, Mooresville, North Carolina BB&T Financial Corporation, Scotland Savings Bank, Richmond November 18, 1993 Wilson, North Carolina SSB, Laurinburg, North Carolina Bergen North Financial, M.H.C. Westwood Savings Bank, New York November 3, 1993 Westwood, New Jersey Westwood, New Jersey Berthoud Bancorp, Inc. Berthoud Bancorp, Inc., Kansas City October 28, 1993 Employee Stock Ownership Berthoud, Colorado Plan, Berthoud, Colorado BNCCORP, Inc., Farmers and Merchants Minneapolis November 23, 1993 Bismarck, North Dakota Bancshares, Inc., Beach, North Dakota Bridgeport Bancshares, Inc., The First National Bank Dallas November 12, 1993 Dover, Delaware of Bridgeport, Bridgeport, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 Federal Reserve Bulletin • January 1994 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Bridgeport Financial Bridgeport Bancshares, Dallas November 12, 1993 Corporation, Inc., Bridgeport, Texas Dover, Delaware The First National Bank of Bridgeport, Bridgeport, Texas BT Financial Corporation, FirstSouth Savings Bank, Philadelphia November 1, 1993 Johnstown, Pennsylvania Pittsburgh, Pennsylvania Caldwell Bancshares, Inc., Caldwell Bancshares of Dallas November 22, 1993 Caldwell, Texas Delaware, Inc., Wilmington, Delaware Caldwell National Bank, Caldwell, Texas Caldwell Bancshares of Caldwell National Bank, Dallas November 22, 1993 Delaware, Inc., Caldwell, Texas Wilmington, Delaware Capital Bancshares, Inc., Capital Bank, Chicago October 28, 1993 Green Bay, Wisconsin Green Bay, Wisconsin Cedar Investment Company, Dike Bancshares Chicago November 16, 1993 Waverly, Iowa Corporation, Dike, Iowa Centennial Bank Holdings, Inc., Farmers Bank, Kansas City October 20, 1993 Eaton, Colorado Eaton, Colorado Central Arkansas Bancshares, GCB Bancshares, Inc., St. Louis November 19, 1993 Inc., Sheridan, Arkansas Arkadelphia, Arkansas Centura Banks, Inc., First Charlotte Financial Richmond November 12, 1993 Rocky Mount, North Carolina Corporation, Charlotte, North Carolina Centura Banks, Inc., Robeson Interim Bank, Richmond November 10, 1993 Rocky Mount, North Carolina Lumberton, North Carolina Community Business Community Business Chicago October 29, 1993 Bancshares, Inc., Bank, Sauk City, Wisconsin Sauk City, Wisconsin Community First Bancorp, Inc., American National Bank Kansas City October 29, 1993 Denver, Colorado of Cheyenne, Cheyenne, Wyoming The Bank of Laramie, Laramie, Wyoming Financial Partners, Inc., Worland, Wyoming CoreStates Financial Corp., Inter Community Philadelphia November 5, 1993 Philadelphia, Pennsylvania Bancorp, Springfield, New Jersey Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 67 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Covington Capital Corporation, Covington County Bank, Atlanta October 28, 1993 Collins, Mississippi Collins, Mississippi Edmonson Bancshares, Inc., Bank of Edmonson St. Louis October 29, 1993 Brownsville, Kentucky County, Brownsville, Kentucky Exchange Bancshares, Inc., The Exchange Bank, Cleveland October 28, 1993 Luckey, Ohio Luckey, Ohio FC Banc Corp., The Farmers Citizens Cleveland November 9, 1993 Bucyrus, Ohio Bank, Bucyrus, Ohio First Baird Bancshares, Inc., Parker County Dallas November 22, 1993 Baird, Texas Bancshares, Inc., First Baird Bancshares of Weatherford, Texas Delaware, Inc., First Parker Bancshares, Dover, Delaware Inc., Carson City, Nevada Weatherford Bancshares, Inc., Weatherford, Texas First Weatherford Bancshares, Inc., Carson City, Nevada First National Bank of Weatherford, Weatherford, Texas First Commonwealth Financial Peoples Bank of Western Cleveland November 18, 1993 Corporation, Pennsylvania, Indiana, Pennsylvania New Castle, Pennsylvania First Community Bancorp, Inc., Auburn Banking St. Louis November 19, 1993 Auburn, Kentucky Company, Auburn, Kentucky First Community Bankshares, Republic National Bank, Kansas City November 2, 1993 Inc., Englewood, Colorado Fort Morgan, Colorado First Golden Bancorporation, Citywide Bank of Kansas City October 20, 1993 Golden, Colorado Apple wood, Wheat Ridge, Colorado First Haskell Bancorp, Inc., First National Bank, Dallas October 25, 1993 Haskell, Texas Haskell, Texas First Manistique Corporation, Bank of Stephenson, Minneapolis November 3, 1993 Manistique, Michigan Stephenson, Michigan First McKinney Bancshares, First Bank, Dallas October 27, 1993 Inc., McKinney, Texas McKinney, Texas The First National Bank Holding The First National Bank Kansas City November 17, 1993 Company, of Longmont, Longmont, Colorado Longmont, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 Federal Reserve Bulletin • January 1994 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date First Star Bancorp, Inc., First Star Savings Bank, Philadelphia November 1, 1993 Bethlehem, Pennsylvania Bethlehem, Pennsylvania F&M Bancorporation, Inc., First National Financial Chicago November 12, 1993 Kaukauna, Wisconsin Corporation, Oconto, Wisconsin Fourth Financial Corporation, Ponca Bancshares, Inc., Kansas City October 28, 1993 Wichita, Kansas Ponca City, Oklahoma Gloucester County Bankshares, The Bank of Gloucester Philadelphia November 5, 1993 Inc., County, Woodbury, New Jersey Woodbury, New Jersey Gordon Management Co., CNBC Bancorp, Inc., Chicago October 28, 1993 Chicago, Illinois Chicago, Illinois Columbia National Bank of Chicago, Chicago, Illinois Griggsville Bancshares, Inc., Farmers National Bank of St. Louis October 25, 1993 Griggsville, Illinois Griggsville, Griggsville, Illinois Hall Properties, A Limited Perry Bancshares, Inc., Kansas City November 5, 1993 Partnership, Perry, Oklahoma Perry, Oklahoma Hocking Valley BancShares, The Hocking Valley Cleveland November 10, 1993 Athens, Ohio Bank, Athens, Ohio Interbank, Inc., First National Bank of Kansas City November 2, 1993 Sayre, Oklahoma Sayre, Sayre, Oklahoma JAM Family Partnership I, L.P., Pinnacle Financial Atlanta November 4, 1993 Elberton, Georgia Corporation, JAM Family Partnership II, L.P., Elberton, Georgia Elberton, Georgia Jones Bancshares, L.P., Blackshear Bancshares, Atlanta November 2, 1993 Waycross, Georgia Inc., Blackshear, Georgia KS Bancorp, Inc., Kenly Savings Bank, Richmond November 10, 1993 Kenly, North Carolina Inc., SSB, Kenly, North Carolina Lake Elmo Bank Profit Sharing Lake Elmo Bancorp, Inc., Minneapolis November 10, 1993 Plan, Lake Elmo, Minnesota Lake Elmo, Minnesota Lake Elmo Bank Profit Sharing Trust, Lake Elmo, Minnesota Lone Tree Service Company, Packwood Financial, Inc., Chicago November 5, 1993 Lone Tree, Iowa Packwood, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 69 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Main Street Banks, Inc., First Federal Savings Atlanta November 5, 1993 Covington, Georgia Bank of Georgia, F.A. Winder, Georgia McConnell & Company, Pinnacle Financial Atlanta November 4, 1993 Elberton, Georgia Corporation, Eberhardt, Inc., Elberton, Georgia Elberton, Georgia Mercantile Acquisition Metro Bancorporation, St. Louis November 9, 1993 Corporation IV, Waterloo, Iowa St. Louis, Missouri Mercantile Bancorporation Inc., Metro Bancorporation, St. Louis November 9, 1993 St. Louis, Missouri Waterloo, Iowa Neosho Bancshares ESOP, Neosho Bancshares, Inc. Kansas City October 22, 1993 Neosho, Missouri Neosho, Missouri Norwest Corporation, First National Bank of Minneapolis October 21, 1993 Minneapolis, Minnesota Arapahoe County, Aurora, Colorado First National Bank of Southeast Denver, Denver, Colorado First National Bank of Lake wood, Lake wood, Colorado OMNIBancorp, Denver West Bank and Kansas City November 19, 1993 Denver, Colorado Trust, Golden, Colorado Orion Bancorporation, Inc., Henry County Bancorp, Chicago October 22, 1993 Orion, Illinois Inc., Cambridge, Illinois Packers Management Company, Nebraska National Kansas City November 10, 1993 Inc., Corporation, Omaha, Nebraska Omaha, Nebraska Peotone Bancorp, Inc., Founders Bancorp, Inc., Chicago November 2, 1993 Peotone, Illinois Scottsdale, Arizona Southwest Bancorp, Inc., Worth, Illinois, Terrapin Bancorp, Inc., Elizabeth, Illinois Rock River Bancorporation, Inc., Oregon, Illinois Westbanco, Inc., Westville, Illinois Minooka Bancorp, Inc., Minooka, Illinois Pinnacle Financial Corporation, Tri-County Bank of Kansas City November 17, 1993 Elberton, Georgia Royston, Royston, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Bulletin • January 1994 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Plaza Bancshares, Inc., Plaza National Bank of Kansas City November 10, 1993 Bartlesville, Oklahoma Bartlesville, Bartlesville, Oklahoma Premier Bancorp, Inc., Alerion Corporation, Atlanta November 22, 1993 Baton Rouge, Louisiana New Orleans, Louisiana Prophetstown Banking Co., The Farmers National Chicago November 8, 1993 Prophetstown, Illinois Bank of Prophetstown, Prophetstown, Illinois Provident Bancorp, Inc., Heritage Savings Bank, Cleveland October 25, 1993 Cincinnati, Ohio Cincinnati, Ohio R. Banking Limited Partnership, BancFirst Corporation, Kansas City November 5, 1993 Oklahoma City, Oklahoma Oklahoma City, Oklahoma RCB Holding Company, American Exchange Kansas City October 29, 1993 Claremore, Oklahoma Bank, Collinsville, Oklahoma Red River Financial Services, Red River State Bank, Minneapolis November 2, 1993 Inc., Halstad, Minnesota Halstad, Minnesota Rice Insurance Agency, Inc., The Banking Group, Ltd., Kansas City November 10, 1993 Strasburg, Colorado Castle Rock, Colorado Robert Lee Bancshares, Inc., Robert Lee (Delaware), Dallas October 29, 1993 Robert Lee, Texas Inc., Wilmington, Delaware Robert Lee State Bank, Robert Lee, Texas Robert Lee (Delaware), Inc., Robert Lee State Bank, Dallas October 29, 1993 Wilmington, Delaware Robert Lee, Texas SBT Bancshares, Inc., State Bank & Trust Atlanta October 27, 1993 Golden Meadow, Louisiana Company of Golden Meadow, Golden Meadow, Louisiana Sentinel Bancorporation, First Bank Washington, San Francisco November 10, 1993 Omak, Washington Omak, Washington Shady Oaks Bancshares, Inc., Shady Oaks National Dallas November 10, 1993 Lake Worth, Texas Bank, Lake Worth, Texas South Central Texas Bancshares, Gonzales Bank, Dallas November 10, 1993 Inc., Gonzales, Texas Flatonia, Texas South Central Texas Bancshares-Delaware, Inc., Wilmington, Delaware Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 71 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date SouthTrust Corporation, SouthTrust of Florida, Atlanta November 8, 1993 Birmingham, Alabama Inc., Jacksonville, Florida BMR Financial Group, Inc., Atlanta, Georgia SouthTrust Corporation, SouthTrust of Florida, Atlanta November 8, 1993 Birmingham, Alabama Inc., Jacksonville, Florida Cypress Banks, Inc., Wesley Chapel, Florida Sparkman Bancshares, Inc., Merchants and Planters St. Louis November 19, 1993 Sparkman, Arkansas Bank, Sparkman, Arkansas Trivoli Bancorp, Inc., Hanna City State Bank, Chicago November 10, 1993 Trivoli, Illinois Hanna City, Illinois UB, Inc., The First National Bank, Kansas City October 21, 1993 Unadilla, Nebraska Unadilla, Nebraska White Eagle Financial Group, Admiralty Bank, Atlanta October 29, 1993 Inc., Palm Beach Gardens, Boca Raton, Florida Florida Worthen Banking Corporation, FirstBank Group, Inc., St. Louis October 29, 1993 Little Rock, Arkansas Brinkley, Arkansas Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Fifth Third Bancorp, The TriState Bancorp, Cleveland November 1, 1993 Cincinnati, Ohio Cincinnati, Ohio First Sterling Bancorp, Inc., D.D. Development of Chicago November 16, 1993 Sterling, Illinois Sterling Limited Partnership, Sterling, Illinois Gordon Management Co., CNBC Development Chicago October 28, 1993 Chicago, Illinois Corporation, Gordon Family Investment Chicago, Illinois Limited Partnership, CNBC Leasing Chicago, Illinois Corporation, Chicago, Illinois CNBC Investment Corporation, Chicago, Illinois The Magnolia State Corporation, Jones County Finance Atlanta Kansas City November 17, 1993 Bay Springs, Mississippi Company, Laurel, Mississippi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1994 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Norwest Corporation, St. Cloud Metropolitan Minneapolis October 25, 1993 Minneapolis, Minnesota Agency, Inc., St. Cloud, Minnesota Princeton National Bancorp, Heart of Illinois Chicago November 19, 1993 Inc., Investment Corp., Princeton, Illinois East Peoria, Illinois Sections 3 and 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Hallmark Capital Corp., West Allis Savings Bank, Chicago November 3, 1993 West Allis, Wisconsin West Allis, Wisconsin National City Bancshares, Inc. Lincolnland Bancorp, St. Louis November 2, 1993 Evans ville, Indiana Inc., Dale, Indiana Ayer-Wagoner-Deal Insurance Agency, Inc., Rockport, Indiana Security Capital Corporation, Security Bank S.S.B., Chicago November 12, 1993 Milwaukee, Wisconsin Milwaukee, Wisconsin Signal Bancshares, Inc., Goodhue County Minneapolis October 29, 1993 West St. Paul, Minnesota Financial Corporation, Red Wing, Minnesota Union Planters Corporation, Mid-South Bancorp, Inc., St. Louis November 15, 1993 Memphis, Tennessee Franklin, Kentucky Simpson County Bank, Franklin, Kentucky Adairville Banking Company, Adairville, Kentucky First Citizens Bank, Franklin, Tennessee Peoples Bank of Elk Valley, Fayetteville, Tennessee General Trust Company, Nashville, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 73 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 Centura Bank, First Charlotte Bank, Richmond November 12, 1993 Rocky Mount, North Carolina Charlotte, North Carolina Chemical Bank & Trust Key State Bank, Chicago November 5, 1993 Company, Owosso, Michigan Midland, Michigan Chemical Bank Chemical Bank Bay Area, Montcalm, Bay City, Michigan Stanton, Michigan Chemical Bank Michigan, Clare, Michigan Exchange Interim Bank, The Exchange Bank, Cleveland October 28, 1993 Luckey, Ohio Luckey, Ohio Fayette Bank and Trust FirstSouth Savings Bank, Cleveland November 1, 1993 Company, Uniontown, Uniontown, Pennsylvania Pennsylvania Fifth Third Bank, First Financial Savings Cleveland November 1, 1993 Cincinnati, Ohio Association, F.A., Cincinnati, Ohio Jefferson Bank of Florida, Jefferson National Bank Atlanta October 28, 1993 Miami Beach, Florida at Sunny Isles, Miami Beach, Florida OMNIBANK Arvada, Denver West Bank and Kansas City November 19, 1993 Arvada, Colorado Trust, Golden, Colorado Robeson Interim Bank, Centura Bank, Richmond November 10, 1993 Lumberton, North Carolina Rocky Mount, North Carolina SouthTrust Bank of West AmeriBank, Atlanta November 8, 1993 Florida, Clearwater, Florida St. Petersburg, Florida SouthTrust Bank of West First National Bank of the Atlanta November 8, 1993 Florida, South, St. Petersburg, Florida Wesley Chapel, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • January 1994 PENDING CASES INVOLVING THE BOARD OF denial of request for information under the Freedom GOVERNORS of Information Act. Dismissed by stipulation on November 9, 1993. This list of pending cases does not include suits CBC, Inc. v. Board of Governors, No. 92-9572 (10th against the Federal Reserve Banks in which the Board Cir., filed December 2, 1992). Petition for review of of Governors is not named a party. civil money penalty assessment against a bank holding company and three of its officers and directors Board of Governors v. Oppegard, No. 93-3706 (8th for failure to comply with reporting requirements. Cir., filed November 1, 1993). Appeal of district Oral argument was held November 8, 1993. court order holding appellant Oppegard in contempt DLG Financial Corporation v. Board of Governors, for failure to comply with prior order requiring No. 392 Civ. 2086-G (N.D. Texas, filed October 9, compliance with Board removal, prohibition, and 1992). Action to enjoin the Board and the Federal civil money penalty order. Reserve Bank of Dallas from taking certain en- Scott v. Board of Governors, No. 930905843CV (Dist. forcement actions, and seeking money damages on Ct., Salt Lake County, Utah, filed October 8, 1993). a variety of tort and contract theories. On October Action against Board and others for damages and 9, 1992, the court denied plaintiffs' motion for a injunctive relief for alleged constitutional and statutemporary restraining order. On March 30, 1993, tory violations caused by issuance of Federal Rethe court granted the Board's motion to dismiss serve notes. as to it, and also dismissed certain claims against Richardson v. Board of Governors, et al., No. 93-C the Reserve Bank. On April 29, the plaintiffs filed 836A (D. Utah, filed August 30, 1993). Action an amended complaint. The Board's motion to against Board and others for damages and injunctive dismiss the amended complaint was filed on relief for alleged constitutional and statutory viola- May 17. tions caused by issuance of Federal Reserve notes. On September 20, 1993, the Board filed a motion to Zemel v. Board of Governors, No. 92-1056 (D. D.C., dismiss. filed May 4, 1992). Age Discrimination in Employ- Kubany v. Board of Governors, et al., No. 93-1428 (D. ment Act case. The parties' cross-motions for sum- D.C., filed July 9, 1993). Action challenging Board mary judgment are pending. determination under the Freedom of Information Board of Governors v. Ghaith R. Pharaon, No. 91- Act. The Board's motion to dismiss was filed on CIV-6250 (S.D. New York, filed September 17, October 15, 1993. 1991). Action to freeze assets of individual pending Bennett v. Greenspan, No. 93-1813 (D. D.C., filed administrative adjudication of civil money penalty April 20, 1993). Employment discrimination action. assessment by the Board. On September 17, 1991, Amann v. Prudential Home Mortgage Co., et al., No. the court issued an order temporarily restraining the 93-10320 WD (D. Massachusetts, filed February 12, transfer or disposition of the individual's assets. 1993). Action for fraud and breach of contract arising out of a home mortgage. On April 17, 1993, the Board filed a motion to dismiss. FINAL ENFORCEMENT DECISION ISSUED BY THE Adams v. Greenspan, No. 93-0167 (D. D.C., filed BOARD OF GOVERNORS January 27, 1993). Action by former employee under the Civil Rights Act of 1964 and the Reha- In the Matter of bilitation Act of 1973 concerning termination of employment. Agha Hasan Abedi and Sisti v. Board of Governors, No. 93-0033 (D. D.C., filed January 6, 1993). Challenge to Board staff Swaleh Naqvi interpretation with respect to margin accounts. The Board's motion to dismiss was granted on May Institution-Affiliated Parties of 13, 1993. On June 3, 1993, the petitioner filed a notice of appeal. On October 14, 1993, the Court of B L C ux C e I m H bo o u ld r i g n , g a s n ( d L u th x e e m B b a o n u k r g o ) f C S. r A ed ., i t and Appeals granted the Board's motion for summary Commerce International S.A., (Luxembourg) affirmance. U.S. Check v. Board of Governors, No. 92-2892 (D. Docket Nos. 91-037-E-I2, 91-037-E-I3, D.C., filed December 30, 1992). Challenge to partial 91-043-E-I1, 91-043-E-I2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 75 Final Decision not respond to the charges as required, and that the ALJ properly found that no good cause had been This Final Decision resolves administrative enforce- shown to excuse the Respondents from a ruling by ment proceedings brought under the authority of the default. In this Final Decision on Default as to Abedi Federal Deposit Insurance Act ("FDI Act") and the and Naqvi, the Board accordingly adopts the ALJ's Bank Holding Company Act ("BHC Act") by the Default Decision, and orders that the attached Order Board of Governors of the Federal Reserve System of Prohibition be issued against Abedi and Naqvi. ("the Board") against Agha Hasan Abedi and Swaleh Naqvi, two of a number of individual respondents against whom the Board initiated enforcement pro- I. Statement of the Case ceedings as a result of their activities as institutionaffiliated parties of BCCI Holdings (Luxembourg) A. Statutory and Regulatory Framework S.A., Luxembourg ("BCCI Holdings"), and the Bank of Credit and Commerce International S.A., Luxem- The Board's regulations governing administrative bourg ("BCCI S.A.") (collectively, "BCCI"). hearings specify that if a respondent does not file an The Notice that initiated the proceeding alleged answer within 20 days of service of the notice, the that Abedi, as the president and founder of the BCCI respondent is deemed to have waived the right to organization, and Naqvi, a principal officer of appear and contest the allegations in the notice. BCCI, caused, brought about, or participated in 12 C.F.R. 263.19(c)(1). Upon motion by enforce- BCCI's acquisition of ownership and control of cer- ment counsel for entry of an order of default, and a tain percentages of the voting shares of various finding by the administrative law judge that "no good financial institutions without the necessary approval cause has been shown for failure to file a timely of the Board, in violation of the BHC Act and of answer", the regulations direct the administrative the Board's Regulation Y. The Notice further alleged law judge to file with the Board a recommended that the Respondents' conduct fulfilled all of the decision containing the findings and relief sought in requirements necessary to the Board's issue of an the notice. 12 C.F.R. 263.19(c)(1).i order of prohibition forbidding Abedi and Naqvi The FDI Act provides that any service required or from participating in any manner in the affairs of authorized to be made by the Board under that Act an insured depository institution without the ap- may be made by registered mail, or "in such other proval of appropriate supervisory agencies. A manner reasonably calculated to give actual notice as subsequently-issued Amended Notice of Intent to the agency may by regulation or otherwise provide." Prohibit alleged additional grounds for the Respon- 12 U.S.C. § 1818(1). The Board's regulations provide dents' prohibition. that service of a notice may be accomplished by any The proceeding comes to the Board in the form of a of a number of methods: by personal service, by Presiding Judge's Order of Default and Recommended delivery to a person of suitable age and discretion at Decision ("Default Decision") by Administrative Law the party's residence, by registered or certified mail Judge Walter J. Alprin (the "ALJ") issued on July 29, addressed to the party's last known address, or by 1993. In that Default Decision, the ALJ found that "any other method reasonably calculated to give each of the Respondents had been effectively served actual notice." 12 C.F.R. 263.11(c)(2). with notices of the charges against them by the Board, and that each had defaulted by failing to file an answer to the charges. Upon finding Abedi and Naqvi in default, the ALJ, as procedurally required, referred to the Board a Recommended Decision containing the findings and relief sought in the notices that initiated the proceedings. 1. The Board amended its procedural rules on August 15, 1991, Neither of the Respondents has contested the during the course of this proceeding. The default provisions, however, remained substantively unchanged. Prior to the adoption of the Default Decision. The only issue before the Board current Uniform Rules of Practice and Procedure, the Board's appliis whether the uncontested record shows that the cable Rules of Practice for Hearings provided that: procedural prerequisites for a final order on default Failure of a party to file an answer required by this section within the time provided shall constitute a waiver of his right to appear and have been satisfied. Upon review of the record, the contest the allegations of the notice of hearing and shall constitute Board concludes that Board Enforcement Counsel authorization for the presiding officer, without further notice to the party, to find the facts to be as alleged in the notice and to file with complied with the statutory and regulatory requirethe Secretary a recommended decision containing such findings and ments for effective service, that Abedi and Naqvi did appropriate conclusions. 12 C.F.R. 263.5(d) (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Bulletin • January 1994 B. Procedural History On September 13, 1991, the September 13 Notice was sent by the Board by international registered mail, The record before the Board reflects the following return receipt requested, to Naqvi's last known adshort procedural history in the administrative proceed- dress in Abu Dhabi. Declaration f 7.4 ings regarding Respondents Abedi and Naqvi.2 Both the July 29 Notice and the September 13 1. Prohibition Notice. On July 29, 1991, the Board Notice were sent to Abedi at an address in Karachi, instituted formal enforcement proceedings against Re- Pakistan identified by the United States Acting Consul spondents Abedi and Naqvi, among other individuals, General in Karachi. Declaration 11 8. The Declaration with the issuance of a Notice of Intent to Prohibit, (the does not indicate that the acknowledgment receipt was "July 29 Notice"). The requested remedy of a prohi- executed or returned by Abedi. bition order was predicated on allegations that Abedi 3. Recommended Decision of Default. On March 27, and Naqvi had participated in BCCI's illegal and 1992, Board Enforcement Counsel filed with the ALJ a secret acquisition of the First American banking orga- Motion for an Order of Default, citing the failure of the nization and other financial institutions in violation of Respondents to respond to the Notices. On July 29, the BHC Act and Regulation Y. July 29 Notice 1f 223. 1993, the ALJ granted Board Enforcement Counsel's On September 13th, 1991, the Board issued an motion, entered the Default Decision, including Rec- Amended Notice of Intent to Prohibit (the "September ommended Findings of Fact and Conclusions of Law, 13 Notice") against Respondents Abedi and Naqvi, and referred the record of the proceeding to the Board among other individuals, alleging additional grounds for Final Decision. The ALJ expressly found that for their prohibition. September 13 Notice 1111 30, 33, satisfactory service had been made as to both Naqvi 35, 42-44, 45-47. and Abedi, and that neither had shown good cause to Both Notices expressly warned of the consequences excuse his failure to respond to the Notices.5 Default of default by the Respondents. The Notices stated that Decision at 4. each Respondent was required to file an answer to the charges within 20 days of the service of the amended II. Discussion Notice upon him, and that failure to file an answer would constitute a waiver of his right to appear and In the circumstances here under review, it is clear that contest the allegations in a hearing. July 29 Notice f the prerequisites to default established by statute and 261; September 13 Notice f 61. regulation have been satisfied. Board Enforcement 2. Service of the Notices. The methods of service of Counsel's use of international registered mail as a the Notices employed by Board Enforcement Counsel method of service is encompassed within the authoriwere stated in the Declaration of Herbert A. Biern zation in the FDI Act and the Board's regulations of ("Declaration") attached as Exhibit A to the Default "registered mail" as a method of service. 12 U.S.C. Motion. § 1818(1); 12 C.F.R. 263.11(c)(2)(iii).* With respect to On August 14, 1991, Board Enforcement Counsel Naqvi, Board Enforcement Counsel took the addisent the July 29 Notice by international registered tional step of arranging for personal service of the July mail, return receipt requested, to Naqvi's last known 29 Notice, evidenced by Naqvi's written acknowladdress in Abu Dhabi. On September 12, 1991, Board Enforcement Counsel received an executed acknowledgement of the return receipt of that mailing. Declaration H 4. In addition, through the intermediation of edgment by Naqvi, its translation, and a certification from a United the United States Department of State and the Minis- States Consular Officer in Abu Dhabi. try of Foreign Affairs of the United Arab Emirates in 4. In addition, service was made on August 1, 1991, upon counsel for Naqvi in Washington, D.C. by certified mail, return receipt Abu Dhabi, Naqvi was personally served with the July requested. Declaration f 3. After initially accepting service of the 29 Notice on December 17, 1991.3 Declaration 11 5-6. Notice, Naqvi's counsel returned the notice to the Board with a letter indicating that he was not authorized to accept service of the Notice on behalf of Naqvi. Id.; Declaration Exhibit 3. 5. The ALJ served a copy of the Default Decision on Naqvi and 2. The record before the Board was certified by the ALJ to Abedi on July 29, 1993 by international registered mail, return receipt constitute the entire record relating to Respondents Abedi and Naqvi. requested. The Board has received no exceptions to the Default It consists of: the Notices issued by the Board on July 29, 1991 and Decision from either Respondent. September 13, 1991; Board Enforcement Counsel's Motion for Entry 6. The Board believes that the term "registered mail" includes of an Order of Default as to Respondents Naqvi and Abedi, ("Motion international registered mail for purposes of the authorization in the for Default") with supporting exhibits, dated March 27, 1992; and the FDI Act and the Board's regulations. In any event, the Board finds ALJ's Default Decision, issued on July 29, 1993. Because the record that the use of international registered mail in these circumstances also contains no responsive pleadings or exceptions to the ALJ's Default represents the use of a method "reasonably calculated to give actual Decision, the facts set forth are uncontested. notice" to a respondent, which is also authorized by the FDI Act 3. Evidence of the personal service on Naqvi is contained in and the Board's regulations. 12 U.S.C. § 1818(1); 12 C.F.R. attachments to the Declaration consisting of a handwritten acknow- 263.11(c)(2)(iv). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 77 edgement that he received the Notice.7 With respect to section 8(e)(7)(B) of the Act (12 U.S.C. Abedi, the Board adopts the ALJ's conclusion that the § 1818(e)(7)(B)), AGHA HASAN ABEDI and use of international registered mail, return receipt SWALEH NAQVI are hereby prohibited: requested, constituted in these circumstances an ef- (a) From participating in the conduct of the affairs fective method of service.8 of any bank holding company, any insured depos- The ALJ did not find that any "good cause" or itory institution or any other institution specified indeed any cause at all had been shown for failure to in subsection 8(e)(7)(A) of the Act (12 U.S.C. file an answer. Default Decision at 4. Nor has either of § 1818(e)(7)(A)); the Respondents filed exceptions to the Default Deci- (b) From soliciting, procuring, transferring, atsion. In these circumstances, no good cause has been tempting to transfer, voting or attempting to vote shown to excuse the default, and the Board adopts the any proxy, consent, or authorization with respect ALJ's recommended conclusion as to the default to any voting rights in any institution described in pursuant to 12 C.F.R. 263.19(c)(1). subsection 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)); Conclusion (c) From violating any voting agreement previously approved by the appropriate Federal bank- For the foregoing reasons, the Board adopts the ALJ's ing agency; or recommended findings and conclusions as its Final (d) From voting for a director, or from serving or Findings of Fact and Conclusions of Law, and orders acting as an institution-affiliated party as defined the issuance of the attached Order of Prohibition. in section 3(u) of the Act, (12 U.S.C. § 1813(u)), such as an officer, director, or employee. Board of Governors of the 2. This Order, and each provision hereof, is and Federal Reserve System shall remain fully effective and enforceable until expressly stayed, modified, terminated or sus- WILLIAM W. WILES pended in writing by the Board. Secretary of the Board This Order shall become effective upon the expira- Order of Prohibition tion of thirty days after service is made. By Order of the Board of Governors, this second WHEREAS, pursuant to section 8(e) of the Federal day of November, 1993. Deposit Insurance Act, as amended, (the "Act") (12 U.S.C. § 1818(e)), the Board of Governors of the Board of Governors of the Federal Reserve System ("the Board") is of the opin- Federal Reserve System ion, for the reasons set forth in the accompanying Final Decision, that a final Order of Prohibition should WILLIAM W. WILES issue against AGHA HASAN ABEDI and SWALEH Secretary of the Board NAQVI; NOW, THEREFORE, IT IS HEREBY OR- DERED, pursuant to sections 8(b)(3), 8(e), and 8(j) of FINAL ENFORCEMENT ORDERS ISSUED BY THE the Act, (12 U.S.C. §§ 1818(b)(3), 1818(e) and 1818(j)), BOARD OF GOVERNORS that: 1. In the absence of prior written approval by the American Express Bank International Board, and by any other Federal financial institution New York, New York regulatory agency where necessary pursuant to The Federal Reserve Board announced on November 1, 1993, the issuance of an Order of Assessment of 7. The ALJ did not rely upon the attempt to effect service upon a Civil Money Penalty and a Cease and Desist Order Naqvi's counsel as a basis for the default. Default Decision at 3 n.l. against the American Express Bank International, The Board similarly does not reach the issue of the effectiveness of New York, New York. that service. 8. This conclusion is supported by the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commer- William H. Kandt cial Matters and its accompanying notes, appended to Federal Rule of Colorado Springs, Colorado Civil Procedure 4. The notes indicate that Pakistan opposes the service of judicial documents upon a Pakistani national residing in Pakistan through diplomatic channels, but that it has no objection to The Federal Reserve Board announced on Novemsuch service by postal channels directly to the persons concerned. See Fed. R. Civ. P. 4 n.l7a. ber 3, 1993, the issuance of an Order of Assessment of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Bulletin • January 1994 a Civil Money Penalty against William H. Kandt, between the Federal Reserve Bank of Kansas City and former president and a former director of the State Liberty Agency, Inc., Kirk, Colorado. Bank & Trust of Colorado Springs, Colorado Springs, Colorado. Ramapo Financial Corporation Wayne, New Jersey WRITTEN AGREEMENTS APPROVED BY FEDERAL RESERVE BANKS The Federal Reserve Board announced on Novem- Constitution Bancorp, Inc. ber 30, 1993, the execution of a Written Agreement Philadelphia, Pennsylvania between the Federal Reserve Bank of New York and Ramapo Financial Corporation, Wayne, New Jersey. The Federal Reserve Board announced on November 29, 1993, the execution of a Written Agreement between the Federal Reserve Bank of Philadelphia and Gary D. Sexton Constitution Bancorp, Inc., Philadelphia, Pennsylva- Houston, Texas nia, a bank holding company, and its subsidiary bank, the Constitution Bank, Philadelphia, Pennsylvania. The Federal Reserve Board announced on November 8, 1993, the execution of a Written Agreement Liberty Agency, Inc. between the Federal Reserve Bank of Dallas and Kirk, Colorado Gary D. Sexton, the sole director and officer and a principal shareholder of Fidelity Bancorp, Inc., The Federal Reserve Board announced on Novem- Houston, Texas, the parent bank holding company of ber 29, 1993, the execution of a Written Agreement the former Fidelity National Bank, Houston, Texas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities A3 Guide to Tabular Presentation A22 Large reporting banks A24 Branches and agencies of foreign banks Domestic Financial Statistics MONEY STOCK AND BANK CREDIT FINANCIAL MARKETS A4 Reserves, money stock, liquid assets, and debt A25 Commercial paper and bankers dollar measures acceptances outstanding A5 Reserves of depository institutions, Reserve Bank A25 Prime rate charged by banks on short-term credit business loans A6 Reserves and borrowings—Depository A26 Interest rates—money and capital markets institutions All Stock market—Selected statistics A7 Selected borrowings in immediately available funds—Large member banks FEDERAL FINANCE POLICY INSTRUMENTS A28 Federal fiscal and financing operations A8 Federal Reserve Bank interest rates A29 U.S. budget receipts and outlays A9 Reserve requirements of depository institutions A30 Federal debt subject to statutory limitation A10 Federal Reserve open market transactions A30 Gross public debt of U.S. Treasury—Types and ownership A31 U.S. government securities FEDERAL RESERVE BANKS dealers—Transactions A32 U.S. government securities dealers—Positions All Condition and Federal Reserve note statements and financing A12 Maturity distribution of loan and security A3 3 Federal and federally sponsored credit holdings agencies—Debt outstanding MONETARY AND CREDIT AGGREGATES A13 Aggregate reserves of depository institutions SECURITIES MARKETS AND and monetary base CORPORATE FINANCE A14 Money stock, liquid assets, and debt measures 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 A35 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

A2 Federal Reserve Bulletin • January 1994 Domestic Financial Statistics—Continued A54 U.S. reserve assets A54 Foreign official assets held at Federal Reserve Banks REAL ESTATE A55 Foreign branches of U.S. banks—Balance A37 Mortgage markets sheet data A3 8 Mortgage debt outstanding A57 Selected U.S. liabilities to foreign official institutions CONSUMER INSTALLMENT CREDIT REPORTED BY BANKS A39 Total outstanding IN THE UNITED STATES A3 9 Terms A57 Liabilities to and claims on foreigners A58 Liabilities to foreigners FLOW OF FUNDS A60 Banks' own claims on foreigners A61 Banks' own and domestic customers' claims on A40 Funds raised in U.S. credit markets foreigners A42 Summary of financial transactions A61 Banks' own claims on unaffiliated foreigners A43 Summary of credit market debt outstanding A62 Claims on foreign countries—Combined A44 Summary of financial assets and liabilities domestic offices and foreign branches Domestic Nonfinancial Statistics REPORTED BYNONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES SELECTED MEASURES A63 Liabilities to unaffiliated foreigners A45 Nonfinancial business activity—Selected A64 Claims on unaffiliated foreigners measures A45 Labor force, employment, and unemployment SECURITIES HOLDINGS AND TRANSACTIONS A46 Output, capacity, and capacity utilization A47 Industrial production—Indexes and gross value A65 Foreign transactions in securities A49 Housing and construction A66 Marketable U.S. Treasury bonds and A50 Consumer and producer prices notes—Foreign transactions A51 Gross domestic product and income A52 Personal income and saving INTEREST AND EXCHANGE RATES International Statistics A67 Discount rates of foreign central banks A67 Foreign short-term interest rates SUMMARY STATISTICS A68 Foreign exchange rates A53 U.S. international transactions—Summary A69 Guide to Statistical Releases and A54 U.S. foreign trade Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected 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 Nonfinancial Statistics • January 1994 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1992 1993 1993 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Q1 Q2 Q3r June July Aug. Sept.r Oct. Reserves of depository institutions2 1 Total 25.8 9.3 10.8 12.4 5.1 9.4 9.7 16.6 20.3 2 Required 25.3 8.7 12.4 12.3 7.0 5.7 12.8 14.0 20.4 3 Nonborrowed 27.1 9.5 10.6 10.9 3.8 8.1 7.5 15.2 23.3 4 Monetary base 12.6 9.1 9.8 11.4 10.9 9.5 11.5 15.1 8.0 Concepts of money, liquid assets, and debt4 Ml 16.8 6.5 10.5 12.9 7.2 13.3r io. r 13.6 10.4 6 M2 2.6 -1.9 2.2 3.1 2.5 1.8r 1.6r 3.9 .7 7 M3 -.4 -3.9? 2.3r 1.2 — ,2r -.8r .8 3.4 2.0 8 L 1.4 -2.4r 3.3r 1.6 ,5r — .5r 3.4r -1.6 n.a. 9 Debt 4.3 3.8 4.6 5.3 6.2 5.3r s.r 4.4 n.a. Sontrqnsaction components 10 In M2 ... j -3.0 --55..44 -1.3r -1.2 .4 -3.2 --22..22rr -.5 --33..77 11 In M3 only6 -15.0 -14.0" 3.3r -9.1 -14.5r -14.9" —3.5r .6 8.8 Time and savings deposits Commercial banks 12 Savings, including MMDAs 12.9 1.6 4.6 5.3 6.4 .8 6.9 5.1 .9 13 Small time -17.2 -7.9 -7.9 -10.7 -10.2 -12.0 -11.2r -8.5 -9.6 14 Large time8, -20.0 -20.0 .2 -8.9 -12.1 -19.1 2.7r -7.5 4.0 Thrift institutions 15 Savings, iircluding MMDAs 8.7 -.2 .8 2.9 2.8 2.2 1.7 1.1 -.3 16 Small time -23.1 -18.6 -10.5 -12.6 -12.3 -14.9 — 11.5r -13.4 -12.5 17 Large time8, -10.8 -15.5 -10.1 -6.8 -9.3 —l.y -9.4 -1.9 .0 Money market mutual funds 18 General purpose and broker-dealer -4.2 -10.2 -.7 -.6 -.7 -I.I -5.7 -6.8 2.2 19 Institution-only -19.4 -14.1 .5 -12.6 -27.8 -18.8 -10.5 5.0 15.5 Debt components4 20 Federal 6.7 7.6 10.4 9.2 12.2 7.4 9.1 7.0 n.a. 21 Nonfederal 3.5 2.5 2.5 3.9 4.1 4.5r 3.7r 3.5 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. The seasonally adjusted, break-adjusted monetary base consists of (1) adjusted M3 is computed by adjusting its non-M2 component as a whole and then seasonally 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 credit vaults 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 owed 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, bainkers 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 RPs—in residents, and (4) money market fiind balances (institution-only), less (5) a amounts of less than $100,000), and (3) balances in both taxable and tax-exempt consolidation adjustment that represents the estimated amount of overnight RPs general-purpose and broker-dealer money market funds. Excludes individual and Eurodollars held by institution-only money market funds. This sum is retirement accounts (IRAs) and Keogh balances at depository institutions and seasonally adjusted as a whole. money market funds. Also excludes all balances held by U.S. commercial banks, 7. Small time deposits—including retail RPs—are those issued in amounts of money market funds (general purpose and broker-dealer), foreign governments less than $100,000. All IRA and Keogh account balances at commercial banks and and commercial banks, and the U.S. government. Seasonally adjusted M2 is thrift institutions are subtracted from small time deposits. computed by adjusting its non-Mi component as a whole and then adding this 8. Large time deposits are those issued in amounts of $100,000 or more, 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 d A ai v ly er a fi g g e u r o e f s Average of daily figures for week ending on date indicated Factor 1993 1993 Aug. Sept. Oct. Sept. 15 Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 356,229 363,813 362,735 361,001 366,625r 366,655r 362,931 362,813 363,886 363,336 U.S. government securities 2 Bought outright—System account 314,668 320,040 320,632 320,041 320,653 320,456 320,849 320,883 320,567 321,263 3 Held under repurchase agreements 4,033 4,891 2,759 2,832 6,567 7,284 2,457 2,291 3,695 2,621 Federal agency obligations 4 Bought outright 4,936 4,835 4,782 4,839 4,839 4,824 4,804 4,803 4,795 4,754 5 Held under repurchase agreements 207 539 390 416 671 570 605 316 535 323 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 119 273 11 4 126 22 386 10 19 12 8 Seasonal credit 235 236 1% 227 234 259 226 218 202 176 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 434 366r 611 341 425r -1T 747 756 521 584 11 Other Federal Reserve assets 31,597 32,633r 33,354 32,301 33,W 33,255r 32,857 33,537 33,553 33,602 12 Gold stock 11,057 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 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 21,780 21,839r 21,898 21,833r 21,846r 21,859r 21,871 21,885 21,899 21,913 ABSORBING RESERVE FUNDS 15 Currency in circulation 348,213 351,130" 353,183 352,122r 350,867r 350,363r 351,766 353,925 354,077 352,887 16 Treasury cash holdings 385 378 385 377 374 377 385 387 387 383 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,764 9,633 5,512 5,117 16,981 10,104 7,518 5,179 5,755 5,130 18 Foreign 230 230 288 276 181 209 238 209 272 406 19 Service-related balances and adjustments 6,097 6,117 6,258 6,102 6,082 6,169 6,105 6,217 6,288 6,351 20 Other 281 329 298 319 336 334 309 292 303 268 21 Other Federal Reserve liabilities and capital 9,423 9,640 9,537 9,548 9,448 9,565 9,744 9,682 9,480 9,552 22 Reserve balances with Federal Reserve Banks3 26,691 27,269 28,246 28,047 23,276r 30,467r 27,812 27,881 28,298 29,345 End-of-month figures Wednesday figures Aug. Sept. Oct. Sept. 15 Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 359,057 369,447r 360,154 363,513 385,118r 366,585r 360,656 363,156 364,361 361,789 U.S. government securities 2 Bought outright—System account 316,985 319,357 317,961 320,070 320,287 319,344 322,590 322,978 320,527 321,903 3 Held under repurchase agreements 4,790 6,296 3,592 3,601 22,036 7,594 50 325 3,595 691 Federal agency obligations 4 Bought outright 4,839 4,804 4,734 4,839 4,839 4,804 4,804 4,799 4,769 4,734 5 Held under repurchase agreements 70 2,146 449 1,866 1,506 1,621 140 31 338 317 6 Acceptances 0 0 0 0 '0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 7 2,680 7 10 74 7 2 4 86 10 8 Seasonal credit 229 239 138 231 248 262 214 210 187 170 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 720 901r 398 375 1,119" —444r -18 1,591 1,371 255 11 Other Federal Reserve assets 31,417 33,024r 32,874 32,520 35,009" 33,39r 32,873 33,218 33,488 33,709 12 Gold stock 11,057 11,057 11,056 11,056 11,056 11,057 11,056 11,056 11,056 11,055 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 21,808 21,871r 21,927 21,833r 21,846r 21,859r 21,871 21,885 21,899 21,913 ABSORBING RESERVE FUNDS 15 Currency in circulation 349,169 351,530"" 352,815 351,735r 350,647r 350,85 lr 352,689 354,609 353,651 352,939 16 Treasury cash holdings 383 384 379 373 376 384 387 388 384 379 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,975 17,289 6,032 5,974 26,895 11,438 6,032 5,234 4,879 5,030 18 Foreign 187 501 390 444 211 294 190 309 272 484 19 Service-related balances and adjustments 6,117 6,105r 6,342 6,102 6,082 6,169 6,105 6,217 6,288 6,351 20 Other 272 306 325 353 333 348 297 283 285 279 21 Other Federal Reserve liabilities and capital 10,164 9,687 8,879 9,306 9,383 9,400 9,575 9,358 9,291 9,380 22 Reserve balances with Federal Reserve Banks3 25,673 24,591r 25,994 30,133 32,113r 28,634r 26,325 27,717 30,285 27,934 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 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 DomesticN onfinancial Statistics • January 1994 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1990 1991 1992 1993 Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. 1 Reserve balances with Reserve Banks 30,237 26,659 25,368 26,975 25,968 26,462 26,562 26,564 27,274r 28,309 2 Total vault cash 31,789 32,510 34,535 32,721 33,462 34,106 34,535 34,516 35,217 35,202 3 Applied vault cash 28,884 28,872 31,172 29,567 30,133 30,776 31,189 31,203 31,863 31,739 4 Surplus vault cash5 2,905 3,638 3,364 3,154 3,329 3,330 3,347 3,313 3,355 3,463 5 Total reserves 59,120 55,532 56,540 56,541 56,101 57,238 57,750 57,767 59,136r 60,049 6 Required reserves 57,456 54,553 55,385 55,445 55,104 56,328 56,661 56,815 58,046r 58,949 7 Excess reserve balances at Reserve Banks ... 1,664 979 1,155 1,096 996 911 1,089 952 l,090r 1,100 8 Total borrowings at Reserve Banks8 326 192 124 73 121 181 244 352 428 285 9 Seasonal borrowings 76 38 18 41 84 142 210 234 236 192 10 Extended credit9 23 1 1 0 0 0 0 0 0 0 Biweekly averages of daily figures for weeks ending on date indicated 1993 July 7 July 21 Aug. 4 Aug. 18 Sept. 1 Sept. 15 Sept. 29 Oct. 13r Oct. 27 Nov. 10 1 Reserve balances with Reserve Banks 26,579 27,489 25,251 26,939 26,564 27,719 26,837r 27,843 28,822 28,029 2 Total vault cash3 34,385 34,026 35,354 34,869 33,879 35,332 35,157 35,805 34,338 36,266 3 Applied vault cash 31,032 30,772 31,883 31,483 30,693 31,999 31,781 32,278 30,946 32,765 4 Surplus vault cash 3,354 3,255 3,471 3,386 3,187 3,333 3,377 3,527 3,393 3,501 5 Total reserves6 57,610 58,261 57,133 58,422 57,257 59,718 58,618r 60,121 59,768 60,794 6 7 R Ex eq c u es ir s e d re s r e e r s v e e rv b e a s lances at Reserve Banksi . . . . . . 56 1 , , 3 2 1 9 1 9 57,2 9 9 6 4 7 56 1 , , 0 1 2 1 1 2 57,6 7 7 5 3 0 56 1 , , 1 1 3 2 6 1 58,8 8 4 7 5 4 57 U ,3 O 1 C 8r 58 1 , , 9 1 8 3 5 7 58 1 , , 6 0 9 7 0 8 59 1 , , 7 0 3 5 9 5 8 Total borrowings at Reserve Banks 311 220 232 431 305 544 321 420 205 132 9 Seasonal borrowings 190 211 222 227 246 226 247 222 189 105 10 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical 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 (line 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 with traditional short-term adjustment credit, institutions (that is, those whose required reserves exceed their vault cash) plus the money market impact of extended credit is similar to that of nonborrowed the amount of vault cash applied during the maintenance period by "nonbound" 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 Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 71,269 78,371 78,121 71,293 69,004 72,908 77,541 76,497 70,801 2 For all other maturities 12,539r 12,673r 12,229"^ 1122,,660088rr 1133,,226666rr 1133,,558888 1144,,550022 1144,,336622 1144,,225599 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 14,103 15,563 17,201 16,123 17,454 21,325 17,756 21,280 20,664 4 For all other maturities 25,095 23,077 22,806 22,381 24,744 22,557 25,149 22,806 22,706 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 13,481 16,211 17,836 16,939 16,829 17,805 15,768 18,981 16,601 6 For all other maturities 41,795 40,350 40,442 42,366 44,700 40,212 40,637 42,465 43,950 All other customers 7 For one day or under continuing contract 29,013 30,159 29,925 30,865 31,152 31,597 30,438 30,392 31,787 8 For all other maturities 14,833 15,095 15,293 15,520 16,278 14,326 14,497 14,436 14,084 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 38,110 45,295 41,258 42,051 39,579 45,766 40,813 41,543 38,232 10 To all other specified customers2 28,986 28,858 27,828 30,603 27,736 27,347 25,316 27,214 27,450 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, Data in this table also appear in the Board's H.5 (507) weekly statistical release. foreign banks and official institutions, and U.S. government agencies. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • January 1994 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 12 O /9 n /9 3 Effective date Previous rate 12 O /9 n /9 3 Effective date Previous rate 12 O /9 n /9 3 Effective date Previous rate Boston 3 7/2/92 3.5 3.20 12/9/93 3.15 3.70 12/9/93 3.65 New York 7/2/92 12/9/93 12/9/93 Philadelphia 7/2/92 12/9/93 12/9/93 Cleveland 7/6/92 12/9/93 12/9/93 Richmond 7/2/92 12/9/93 12/9/93 Atlanta 7/2/92 12/9/93 12/9/93 Chicago 7/2/92 12/9/93 12/9/93 St. Louis 7/7/92 12/9/93 12/9/93 Minneapolis 7/2/92 12/9/93 12/9/93 Kansas City 7/2/92 12/9/93 12/9/93 Dallas 7/2/92 12/9/93 12/9/93 San Francisco ... 3 7/2/92 3.5 3.20 12/9/93 3.15 3.70 12/9/93 3.65 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. ? 13-14 13 20 6.5 6.5 6 13 13 1987—Sept. 4 5.5-6 6 May 11 6.5-7 7 Dec. 4 12 12 11 6 6 12 7 7 July 3 7-7.25 7.25 1982---JJuullyy 70 11.5-12 11.5 1988—Aug. 9 6-6.5 6.5 10 7.25 7.25 73 11.5 11.5 11 6.5 6.5 Aug. 21 7.75 7.75 Aug. 7 11-11.5 11 Sept. 22 8 8 3 11 11 1989—Feb. 24 6.5-7 7 Oct. 16 8-8.5 8.5 16 10.5 10.5 27 7 7 20 8.5 8.5 77 10-10.5 10 Nov. 1 8.5-9.5 9.5 30 10 10 1990—Dec. 19 6.5 6.5 3 9.5 9.5 Oct. 1? 9.5-10 9.5 13 9.5 9.5 1991—Feb. 1 6-6.5 6 1979—July 20 10 10 Nov. 77 9-9.5 9 4 6 6 Aug. 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 Sept. 19 10.5-11 11 IS 8.5-9 8.5 Sept. 13 5-5.5 5 21 11 11 17 8.5 8.5 17 5 5 Oct. 8 11-12 12 Nov. 6 4.5-5 4.5 10 12 12 1984-——AApprr.. 9 8.5-9 9 7 4.5 4.5 13 9 9 Dec. 20 3.5-4.5 3.5 1980—-Feb. 15 12-13 13 Nov. 71 8.5-9 8.5 24 3.5 3.5 19 13 13 76 8.5 8.5 May 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 DDeecc.. 99,, 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 Requirement TTyyppee ooff ddeeppoossiitt22 Per d c e e p n o ta s g it e s of Effective date Net transaction accounts3 1 $0 million-$51.9 million 33333 1111122222/////2222211111/////9999933333 2 More than $51.9 million4 1111100000 1111122222/////2222211111/////9999933333 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 1. Required reserves must be held in the form of deposits with Federal Reserve permit no more than six preauthorized, automatic, or other transfers per month, Banks or vault cash. Nonmember institutions may maintain reserve balances with of which no more than three may be checks, are not transaction accounts (such a Federal Reserve Bank indirectly on a pass-through basis with certain approved accounts are savings deposits). institutions. For previous reserve requirements, see earlier editions of the Annual The Monetary Control Act of 1980 requires that the amount of transaction Report or the Federal Reserve Bulletin. Under provisions of the Monetary accounts against which the 3 percent reserve requirement applies be modified Control Act, depository institutions include commercial banks, mutual savings annually by 80 percent of the percentage change in transaction accounts held by banks, savings and loan associations, credit unions, agencies and branches of all depository institutions, determined as of June 30 each year. Effective Dec. 21, foreign banks, and Edge Act corporations. 1993, for institutions reporting quarterly and weekly, the amount was increased 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law from $46.8 million to $51.9 million. 97-320) requires that $2 million of reservable liabilities of each depository 4. The reserve requirement was reduced from 12 percent to 10 percent on Apr. institution be subject to a zero percent reserve requirement. The Board is to adjust 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions the amount of reservable liabilities subject to this zero percent reserve require- that report quarterly. ment each year for the succeeding calendar year by 80 percent of the percentage 5. For institutions that report weekly, the reserve requirement on nonpersonal increase in the total reservable liabilities of all depository institutions, measured time deposits with an original maturity of less than 1 Vi years was reduced from 3 on an annual basis as of June 30. No corresponding adjustment is to be made in percent to 1V5 percent for the maintenance period that began Dec. 13, 1990, and the event of a decrease. On Dec. 21, 1993, the exemption was raised from $3.8 to zero for the maintenance period that began Dec. 27, 1990. The reserve million to $4.0 million. The exemption applies in the following order: (1) net requirement on nonpersonal time deposits with an original maturity of IVi 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 \ 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 was the reserve for the purpose of making payments to third persons or others. However, money requirement on nonpersonal time deposits with an original maturity of less than market deposit accounts (MMDAs) and similar accounts subject to the rules that 1 Vi years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancial Statistics • January 1994 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1993 TTyypp aa ee nn dd oo ff mm ttrr aa aa tt nn uu ss rrii aa tt cc yy tt iioonn 11999900 11999911 11999922 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 24,739 20,158 14,714 0 121 349 7,280 0 902 366 2 Gross sales 7,291 120 1,628 0 0 0 0 0 0 0 3 Exchanges 241,086 277,314 308,699 23,796 30,124 26,610 24,821 35,943 27,775 31,128 4 Redemptions 4,400 1,000 1,600 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 425 3,043 1,0% 279 244 0 0 0 100 411 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 25,638 24,454 36,662 4,303 1,950 4,108 4,002 0 1,497 3,074 8 Exchanges -27,424 -28,090 -30,543 -2,602 -1,100 -4,013 -2,152 0 -5,491 -1,861 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 1,441 2,490 0 0 200 1,100 2,400 11 Gross sales 200 0 0 0 0 0 0 0 0 0 12 Maturity shifts -21,770 -21,211 -34,478 -4,303 -1,630 -3,652 -4,002 666 -834 -3,074 13 Exchanges 25,410 24,594 25,811 2,602 800 3,245 2,152 0 3,866 1,861 Five to ten years 14 Gross purchases 0 1,280 2,818 716 1,147 0 0 0 500 797 15 Gross sales 100 0 0 0 0 0 0 0 0 0 16 Maturity shifts -2,186 -2,037 -1,915 0 -320 -333 0 -666 -432 0 17 Exchanges 789 2,894 3,532 0 300 468 0 0 1,100 0 More than ten years 18 Gross purchases 0 375 2,333 705 1,110 0 0 0 100 717 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,681 -1,209 -269 0 0 -123 0 0 -231 0 21 Exchanges 1,226 600 1,200 0 0 300 0 0 525 0 All maturities 22 Gross purchases 25,414 31,439 34,079 3,141 5,111 349 7,280 200 2,702 4,691 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 1,482,467 146,563 127,115 124,462 111,726 115,504 136,037 124,898 26 Gross purchases 1,363,434 1,571,534 1,480,140 143,049 128,924 123,227 113,095 117,074 135,705 122,578 Repurchase agreements 27 Gross purchases 219,632 310,084 378,374 37,815 30,197 33,987 53,051 41,190 53,053 62,905 28 Gross sales 202,551 311,752 386,257 33,714 36,953 28,640 43,342 56,246 48,263 61,399 29 Net change in U.S. Treasury securities 24,886 29,729 20,642 3,728 163 4,461 18,357 -13,286 7,160 3,878 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 5 0 0 0 0 0 0 0 0 32 Redemptions 183 292 632 101 28 41 22 366 125 35 Repurchase agreements 33 Gross purchases 41,836 22,807 14,565 1,811 197 2,105 2,968 3,479 2,485 9,810 34 Gross sales 40,461 23,595 14,486 1,519 764 2,105 2,019 4,428 2,415 7,734 35 Net change in federal agency obligations 1,192 -1,085 -554 191 -595 -41 927 -1,315 -55 2,041 36 Total net change in System Open Market Account 26,078 28,644 20,089 3,918 -431 4,420 19,284 -14,601 7,105 5,919 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. 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 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 Aug. 31 Sept. 30 Oct. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,057 11,056 11,056 11,056 11,055 11,057 11,057 11,056 2 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 3 Coin 378 390 393 405 401 382 378 406 Loans 4 To depository institutions 268 216 214 273 180 236 2,918 145 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 4,804 4,804 4,799 4,769 4,734 4,839 4,804 44,,773344 8 Held under repurchase agreements 1,621 140 31 338 317 70 2,146 449 9 Total U.S. Treasury securities 326,938 322,640 323,303 324,122 322,594 321,775 325,653 321,553 10 Bought outright2 319,344 322,590 322,978 320,527 321,903 316,985 319,357 317,961 11 Bills 152,069 155,216 155,603 153,621 154,997 153,936 151,982 151,055 12 Notes 128,497 128,597 128,597 128,128 128,128 125,211 128,597 128,128 13 Bonds 38,778 38,778 38,778 38,778 38,778 37,838 38,778 38,778 14 Held under repurchase agreements 7,594 50 325 3,595 691 4,790 6,296 3,592 15 Total loans and securities 333,632 327,801 328,347 329,502 327,825 326,920 335,521 326,882 16 Items in process of collection 5,001 6,369 9,976 6,407 5,517 7,560 4,349 5,052 17 Bank premises 1,047 1,048 1,048 1,048 1,048 1,044 1,047 1,048 Other assets 18 Denominated in foreign currencies 23,011 23,277 23,294 23,310 23,324 22,899 23,272 22,580 19 All other4 9,379 8,531 8,917 9,139 9,393 7,485 8,771 9,229 20 Total assets 391,523 386,490 391,049 388,887 386,581 385,364 392,412 384,270 LIABILITIES 21 Federal Reserve notes 329,755 331,595 333,505 332,541 331,806 328,125 330,421 331,672 22 Total deposits 47,535 39,578 40,031 41,595 40,367 40,368 48,030 39,169 23 Depository institutions 35,455 33,058 34,205 36,160 34,574 31,931 29,934 32,422 24 U.S. Treasury—General account 11,438 6,032 5,234 4,879 5,030 7,975 17,289 6,032 25 Foreign—Official accounts 294 190 309 272 484 187 501 390 26 Other 348 297 283 285 279 272 306 325 27 Deferred credit items 4,833 5,742 8,155 5,459 5,029 6,707 4,275 4,550 28 Other liabilities and accrued dividends 2,418 2,372 2,349 2,302 2,397 2,408 2,460 2,482 29 Total liabilities 384,541 379,288 384,040 381,898 379,598 377,608 385,186 377,872 CAPITAL ACCOUNTS 30 Capital paid in 3,331 3,332 3,333 3,333 3,335 3,317 3,331 3,338 31 Surplus 3,054 3,054 3,054 3,054 3,054 3,054 3,054 2,984 32 Other capital accounts 598 817 623 602 594 1,385 842 75 33 Total liabilities and capital accounts 391,523 386,490 391,049 388,887 386,581 385,364 392,412 384,270 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 332,545 331,132 325,914 327,016 334,033 332,238 330,479 333,735 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 395,304 395,457 395,875 396,166 397,288 391,822 395,420 397,576 36 LESS: Held by Federal Reserve Banks 65,549 63,862 62,371 63,625 65,482 63,697 64,999 65,904 37 Federal Reserve notes, net 329,755 331,595 333,505 332,541 331,806 328,125 330,421 331,672 Collateral held against notes, net: 38 Gold certificate account 11,057 11,056 11,056 11,056 11,055 11,057 11,057 11,056 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 310,680 312,521 314,431 313,468 312,732 309,051 311,346 312,599 42 Total collateral 329,755 331,595 333,505 332,541 331,806 328,125 330,421 331,672 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly 3. Valued monthly at market exchange rates. statistical release. For ordering address, see inside front cover. 4. Includes special investment account at the Federal Reserve Bank of Chicago 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities in Treasury bills maturing within ninety days. pledged with Federal Reserve Banks—and excludes securities sold and scheduled 5. Includes exchange-translation account reflecting the monthly revaluation at to be bought back under matched sale-purchase transactions. market exchange rates of foreign exchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • January 1994 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 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 Aug. 31 Sept. 30 Oct. 29 1 Total loans 268 216 214 273 180 236 2,918 145 2 Within fifteen days1 235 72 70 259 170 99 2,793 71 3 Sixteen days to ninety days 34 144 144 14 10 137 125 75 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 days1 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 319,351 322,640 323,303 324,122 322,594 316,985 319,357 317,961 10 Within fifteen days' 11,886 16,814 17,140 19,423 8,532 6,730 4,423 3,625 11 Sixteen days to ninety days 77,157 76,422 77,017 79,559 85,486 82,664 76,689 85,863 12 Ninety-one days to one year 101,514 100,846 100,589 97,495 100,930 102,812 109,686 100,828 13 One year to five years 75,179 74,942 74,942 74,911 74,911 72,679 74,942 74,911 14 Five years to ten years 22,505 22,505 22,505 21,623 21,623 21,707 22,505 21,623 15 More than ten years 31,111 31,111 31,111 31,111 31,111 30,394 31,111 31,111 16 Total federal agency obligations 6,426 4,944 4,830 5,107 5,051 4,839 4,804 4,734 17 Within fifteen days' 1,841 170 % 477 421 302 220 104 18 Sixteen days to ninety days 555 705 670 566 651 439 550 651 19 Ninety-one days to one year 1,102 1,142 1,172 1,172 1,105 1,142 1,102 1,105 20 One year to five years 2,187 2,187 2,157 2,157 2,139 2,168 2,187 2,139 21 Five years to ten years 599 599 594 594 594 647 599 594 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 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 .. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS2222 1111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss3333 40.49 41.77 45.53 54.35 55.17 55.20 56.88 57.12 57.57 58.03 58.84 59.83 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss4444 40.23 41.44 45.34 54.23 55.07 55.12 56.76 56.94 57.32 57.68 58.41r 59.55 3333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 40.25 41.46 45.34 54.23 55.07 55.12 56.76 56.94 57.32 57.68 58.41r 59.55 4444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 39.57 40.10 44.56 53.20 53.95 54.10 55.88 56.21 56.48 57.08 57.75 58.73 5555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee6666 267.73 293.19 317.17 350.80 358.37 360.63 364.77 368.07 370.98 374.53 379.26r 381.78 Not seasonally adjusted 6666 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss7777 41.77 43.07 46.98 56.06 54.18 56.37 55.88 56.% 57.42 57.38 58.69 59.54 7777 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 41.51 42.74 46.78 55.93 54.09 56.29 55.76 56.78 57.17 57.03 58.26r 59.26 8888 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 41.53 42.77 46.78 55.93 54.09 56.29 55.76 56.78 57.17 57.03 58.26r 59.26 9999 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss8888 40.85 41.40 46.00 54.90 52.96 55.27 54.88 56.05 56.33 56.43 57.60 58.44 11110000 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee9999 271.18 296.68 321.07 354.55 356.00 361.64 364.08 368.73 372.02 374.10 377.75r 380.84 NNNNOOOOTTTT AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS11110000 11111111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss11111111 62.81 59.12 55.53 56.54 54.30 56.54 56.10 57.24 57.75 57.77 59.14 60.05 11112222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 62.54 58.80 55.34 56.42 54.20 56.47 55.98 57.06 57.51 57.42 58.71 59.76 11113333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 62.56 58.82 55.34 56.42 54.20 56.47 55.98 57.06 57.51 57.42 58.71 59.76 11114444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 61.89 57.46 54.55 55.39 53.08 55.45 55.10 56.33 56.66 56.82 58.05 58.95 11115555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee11112222 292.55 313.70 333.61 360.90 362.59 368.18 370.46 375.19 378.48 380.53 384.25r 387.52 11116666 EEEExxxxcccceeeessssssss rrrreeeesssseeeerrrrvvvveeeessss"""" .92 1.66 .98 1.16 1.21 1.10 1.00 .91 1.09 .95 1.09 1.10 11117777 BBBBoooorrrrrrrroooowwwwiiiinnnnggggssss ffffrrrroooommmm tttthhhheeee FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee .27 .33 .19 .12 .09 .07 .12 .18 .24 .35 .43 .29 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 ail 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 those weekly reporters whose vault cash adjusted, break-adjusted required reserves (line 4) plus excess reserves (line 16). exceeds their required reserves) the break-adjusted difference between current 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally vault cash 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 with traditional short- 12. The monetary base, not break-adjusted and not seasonally adjusted, term adjustment credit, the money market impact of extended credit is similar to consists of (1) total reserves (line 11), plus (2) required clearing balances and 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 • January 1994 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1993 IItteemm 1989 1990 1991 1992 Dec. Dec. Dec. Dec. Julyr Aug/ Sept.r Oct. Seasonally adjusted Measures2 1 Ml 794.6 827.2 899.3 1,026.6 1,085.0 1,094.1 1,106.5 1,116.1 2 M2 3,233.3 3.345.5 3,445.8 3,494.8r 3.516.3 3,520.9 3,532.3 3,534.4 3 M3 4,056.1 4,116.8 4,168.1 4,162.5 4.162.4 4,165.1 4,176.8 4,183.6 4 L 4,886.1 4.966.6 4,982.3 5,039.5 5,065.7 5,080.0 5,073.3 n.a. 5 Debt 10,030.7 10,670.1 11,141.9 11,718.6 12,024.7 12,076.0 12,120.7 n.a. Ml components 6 Currency 222.7 246.7 267.2 292.3 309.6 312.6 316.4 318.2 7 Travelers checks4 6.9 7.8 7.8 8.1 7.9 7.8 7.8 7.8 8 Demand deposits 279.8 278.2 290.5 340.8 365.7 370.7 376.4 380.0 9 Other checkable deposits6 285.3 294.5 333.8 385.2 401.9 403.1 406.0 410.2 Nontransaction components 10 In M2 2,438.7 2,518.3 2,546.6 2,468.3 2,431.3 2,426.8 2,425.8 2,418.3 11 In M3 822.8 771.3 722.3 667.7 646.1 644.2 644.5 649.2 Commercial banks 12 Savings deposits, including MMDAs 541.4 582.2 666.2 756.1 769.5 773.9 777.2 777.8 13 Small time deposits9.. 534.9 610.3 601.5 506.9 483.8 479.3 475.9 472.1 14 Large time deposits10' 11 387.7 368.8 341.3 288.1 271.6 272.2 270.5 271.4 Thrift institutions 15 Savings deposits, including MMDAs 349.6 338.6 376.3 429.9 430.6 431.2 431.6 431.5 16 Small time deposits9. 617.8 562.0 463.2 360.4 333.8 330.6 326.9 323.5 17 Large time deposits10 161.1 120.9 83.4 67.5 63.7 63.2 63.1 63.1 Money market mutual funds 18 General purpose and broker-dealer . 317.4 350.5 363.9 342.3 335.9 334.3 332.4 333.0 19 Institution-only 108.8 135.9 182.1 202.3 195.0 193.3 194.1 196.6 Debt components 20 Federal debt 2,247.6 2,490.7 2,763.8 3,068.4 3.227.8 3,252.2 3,271.2 n.a. 21 Nonfederal debt 7,783.1 8,179.4 8,378.1 8,650.2 8.796.9 8,823.8 8,849.5 n.a. Not seasonally adjusted Measured 22 Ml 811.5 843.7 916.4 1,045.7 1.083.7 1,087.7 1,098.2 1,110.9 23 M2 3,245.1 3,357.0 3,457.9 3,509.1 3.512.8 3,513.7 3,518.7 3,528.4 24 M3 4,066.4 4,126.3 4.178.1 4,174.6 4.155.9 4.163.0 4,164.1 4,173.7 25 L 4,906.0 4,988.0 5.004.2 5,064.0 5,047.7 5.067.1 5,062.0 n.a. 26 Debt 10,026.5 10,667.7 11,141.0 11,717.2 11,983.3 12,036.9 12,088.6 n.a. Ml components 27 Currency3 225.3 249.5 269.9 295.0 311.0 312.8 314.8 317.3 28 Travelers checks4 6.5 7.4 7.4 7.8 8.4 8.4 8.2 8.0 29 Demand deposits3 291.5 289.9 302.9 355.2 365.4 367.3 372.9 380.8 30 Other checkable deposits6 288.1 296.9 336.3 387.7 398.8 399.2 402.4 404.8 Nontransaction components 31 In M2' 2,433.6 2,513.2 2,541.5 2,463.4 2,429.1 2,426.0 2,420.5 2,417.5 32 In M38 821.3 769.3 720.1 665.5 643.1 649.3 645.4 645.3 Commercial banks 33 Savings deposits, iincluding MMDAs 543.0 580.1 663.3 752.3 772.2 774.5 775.0 775.9 34 Small time deposits9. 533.8 610.5 602.0 507.7 483.7 479.4 476.6 473.3 35 Large time deposits10, 11 386.9 367.7 340.1 287.1 271.2 273.3 270.9 270.5 Thrift institutions 36 Savings deposits, iiuluding MMDAs 347.4 337.3 374.7 427.8 432.1 431.5 430.4 430.4 37 Small time deposits9. 616.2 562.1 463.6 360.9 333.7 330.7 327.4 324.3 38 Large time deposits10 162.0 120.6 83.1 67.3 63.6 63.4 63.2 62.9 Money market mutual funds 39 General purpose and broker-dealer 315.7 348.4 361.5 340.0 331.7 331.5 329.8 330.0 40 Institution-only 109.1 136.2 182.4 202.4 191.8 193.3 190.7 192.4 Repurchase agreements and Eurodollars 41 Overnight 77.5 74.7 76.3 74.7r 75.6 78.3 81.3 83.7 42 Term 178.4 158.3 130.1 126.2 138.4 140.1 140.7 139.9 Debt components 43 Federal debt 2,247.5 2,491.3 2,765.0 3,069.8 3,201.8 3,229.4 3,251.9 n.a. 44 Nonfederal debt 7,779.0 8,176.3 8,376.0 8,647.4 8,781.5 8,807.4 8,836.7 n.a. Footnotes appear on 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 owed 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 (5) a $100,000 or more) issued by all depository institutions, (2) term Eurodollars held consolidation adjustment that represents the estimated amount of overnight RPs by U.S. residents at foreign branches of U.S. banks worldwide and at all banking and 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 Domestic Nonfinancial Statistics • January 1994 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1993 IItteemm 11999911 Feb. Mar. Apr. May June July Aug. Sept.r Oct. Interest rates (annual effective yields) INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts ... 3.76 2.33 2.27 2.21 2.15 2.12 2.09 2.06 2.01 1.96 1.93 2 Savings deposits 4.30 2.88 2.80 2.73 2.68 2.65 2.61 2.59 2.55 2.51 2.49 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 4.18 2.90 2.81 2.75 2.72 2.70 2.68 2.67 2.66 2.63 2.63 4 92 to 182 days 4.41 3.16 3.08 3.03 2.99 2.97 2.97 2.97 2.% 2.92 2.91 5 183 days to 1 year 4.59 3.37 3.29 3.22 3.19 3.18 3.19 3.18 3.17 3.13 3.11 6 More than 1 year to 2Vi years 4.95 3.88 3.83 3.74 3.66 3.64 3.65 3.64 3.63 3.55 3.54 7 More than 2 Vi years 5.52 4.77 4.59 4.52 4.47 4.47 4.44 4.43 4.40 4.28 4.27 BIF-INSURED SAVINGS BANKS3 8 Negotiable order of withdrawal accounts ... 4.44 2.45 2.37 2.32 2.25 2.20 2.13 2.09 2.07 2.01 1.98 9 Savings deposits 4.97 3.20 3.14 3.05 2.98 2.93 2.88 2.83 2.80 2.73 2.68 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 4.68 3.13 3.01 2.95 2.91 2.87 2.86 2.80 2.79 2.76 2.75 11 92 to 182 days 4.92 3.44 3.35 3.28 3.23 3.19 3.17 3.15 3.12 3.05 3.05 12 183 days to 1 year 4.99 3.61 3.57 3.52 3.48 3.45 3.44 3.40 3.37 3.33 3.34 13 More than 1 year to 2Vi years 5.23 4.02 3.89 3.83 3.86 3.76 3.79 3.72 3.73 3.69 3.68 14 More than 2Vi years 5.98 5.00 4.97 4.89 4.84 4.79 4.75 4.73 4.73 4.62 4.57 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts ... 244,637 286,541 279,944 287,811 280,073 283,860 287,555 284,4% 287,675 286,056 289,801 16 Savings deposits 652,058 738,253 742,952 747,809 745,038 753,452 754,790 757,716 761,919 758,835 765,358 17 Personal 508,191 578,757 585,189 591,388 586,863 591,231 592,545 593,448 593,318 592,028 595,703 18 Nonpersonal 143,867 159,496 157,764 156,422 158,175 162,221 162,245 164,268 168,601 166,807 169,655 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 47,094 38,474 36,738 35,459 34,675 33,213 31,743 30,803 30,017 30,384 30,022 20 92 to 182 days 158,605 127,831 128,209 125,630 122,136 119,096 114,846 112,497 109,603 108,574 108,505 21 183 days to 1 year 209,672 163,098 159,631 158,173 156,957 157,559 156,549 156,431 155,074 152,501 149,758 22 More than 1 year to 2Vi years 171,721 152,977 151,798 147,798 146,830 144,330 144,804 143,605 141,377 139,406 139,044 23 More than 2 Vi years 158,078 169,708 172,362 177,558 178,657 179,761 179,297 180,983 181,762 184,414 183,791 24 IRA/Keogh Plan deposits 147,266 147,350 146,841 148,515 147,463 146,450 146,523r 146, l%r 145,955r 145,636 144,782 BIF-INSURED SAVINGS BANKS3 25 Negotiable order of withdrawal accounts.... 9,624 10,871 9,821 10,199 9,876 10,000 10,313 10,457 10,468 10,471 10,550 26 Savings deposits 71,215 81,786 79,649 77,390 76,970 77,352 77,495 78,390 78,387 78,182 78,023 27 Personal 68,638 78,695 76,634 74,430 74,077 74,376 74,569 75,049 75,153 74,978 74,763 28 Nonpersonal 2,577 3,091 3,016 2,961 2,893 2,976 2,926 3,341 3,234 3,204 3,261 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 4,146 3,867 3,468 3,201 3,167 3,103 3,022 2,871 2,928 2,886 2,841 30 92 to 182 days 21,686 17,345 15,857 14,468 14,328 14,129 13,808 13,773 13,525 13,261 13,140 31 183 days to 1 year 29,715 21,780 20,301 19,074 18,778 18,520 18,427 18,454 18,143 17,798 17,455 32 More than 1 year to 2Vi years 25,379 18,442 17,387 16,842 16,433 16,155 15,972 16,250 16,200 16,161 16,136 33 More than 2Vi years 18,665 18,845 18,759 18,564 18,646 18,725 18,989 19,229 19,331 19,610 19,669 34 IRA/Keogh Plan accounts 23,007 21,713 21,260 20,089 19,969 19,861 19,855 19,920 19,802 19,766 19,615 1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6 seasonally adjusted and include IRA/Keogh deposits and foriegn currency denom- (508) Special Supplementary Table monthly statistical release. For ordering inated deposits. Data exclude retail repurchase agreements and deposits held in address, see inside front cover. Estimates are based on data collected by the U.S. branches and agencies of foreign banks. Federal Reserve System from a stratified random sample of about 460 commercial 2. Includes personal and nonpersonal money market deposits. banks and 80 savings banks on the last Wednesday of each period. Data are not 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 A17 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 1993 Mar. Apr. May June Julyr Aug. DEBITS Seasonally adjusted Demand deposits3 1 All insured banks 277,157.5 277,758.0 315,806.1 331,026.3 324,638.7 306,642.9 335,248.5 330,636.0 333,295.5 2 Major New York City banks 131,699.1 137,352.3 165,572.7 166,866.6 163,540.1 155,495.0 170,062.9 166,869.9 168,433.7 3 Other banks 145,458.4 140,405.7 150,233.5 164,159.7 161,098.6 151,147.9 165,185.6 163,766.1 164,861.8 4 Other checkable deposits4 3,349.0 3,645.5 3,788.1 3,572.6 3,524.7 3,284.7 3,620.9 3,380.7 3,478.1 5 Savings deposits (including MMDAs) 3,483.3 3,266.1 3,331.3 . 3,562.8 3,523.3 3,436.1 3,637.4 3,666.7 3,529.2 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 797.8 803.5 832.4 811.3 792.3 722.8 791.3 777.9 767.8 7 Major New York City banks 3,819.8 4,270.8 4,797.9 4,129.1 4,120.9 3,852.9 4,197.5 4,306.7 4,027.5 8 Other banks 464.9 447.9 435.9 446.6 435.4 393.7 431.1 423.9 420.3 9 Other checkable deposits4 16.5 16.2 14.4 12.5 12.5 11.2 12.3 11.5 11.7 10 Savings deposits (including MMDAs)5 6.2 5.3 4.7 4.8 4.7 4.5 4.7 4.8 4.6 DEBITS Not seasonally adjusted Demand deposits3 11 All insured banks 277,290.5 277,715.4 315,808.2 339,172.4 324,530.2 306,746.1 345,368.7 332,573.8 342,886.8 12 Major New York City banks 131,784.7 137,307.2 165,595.0 170,855.0 161,923.2 154,606.6 176,874.8 168,018.4 174,674.7 13 Other banks 145,505.8 140,408.3 150,213.3 168,317.4 162,607.0 152,139.5 168,493.9 164,555.4 168,212.1 14 Other checkable deposits4 3,346.7 3,645.6 3,788.1 3,630.2 3,741.6 3,201.0 3,645.9 3,305.2 3,416.5 15 Savings deposits (including MMDAs)5 3,483.0 3,267.7 3,329.0 3,529.2 3,741.3 3,445.0 3,758.1 3,677.1 3,567.2 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 798.2 803.4 832.5 854.5 787.0 738.2 818.3 777.4 803.0 17 Major New York City banks 3,825.9 4,274.3 4,803.5 4,385.4 4,108.4 3,948.9 4,412.6 4,280.6 4,307.8 18 Other banks 465.0 447.9 436.0 470.2 436.0 404.2 441.1 423.5 435.3 19 Other checkable deposits4 16.4 16.2 14.4 12.6 12.8 11.1 12.5 11.3 11.7 20 Savings deposits (including MMDAs)5 6.2 5.3 4.7 4.7 5.0 4.5 4.9 4.8 4.6 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 in 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 Nonfinancial Statistics • January 1994 1.24 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars, averages of Wednesday figures 1992 1993 IItteemm Nov. Dec. Jan. Feb. Mar. Apr.r Mayr Juner Julyr Aug.r Sept.r Oct. Seasonally adjusted 1 Total loans, leases, and securities2 . 2,932.4 2,937.6 2,935.3 2,943.9 2,960.2 2,970.9 2,991.2 3,013.9 3,037.6 3,045.9 3,056.8 3,056.3 2 U.S. government securities 651.4 657.1 656.5 666.2 680.2r 691.0 693.5 704.1 708.1 714.3 719.7 717.2 3 Other securities 177.3 176.0 174.5 176.4 179.0r 181.0 181.2 179.7 181.3 182.2 182.6 181.0 4 Total loans and leases 2,103.8 2,104.6 2,104.4 2,101.3 2,101.0" 2,098.9 2,116.5 2,130.1 2,148.2 2,149.4 2,154.5 2,158.1 5 Commercial and industrial ..... 600.5 597.6 598.0 596.7 593.1 587.5 589.9 590.8 589.8 589.0 585.8 585.7 6 Bankers acceptances held ... 7.9 7.7 7.3 8.4 8.5 8.5 9.0 8.9 9.5 9.9 9.1 99..88 7 Other commercial and industrial 592.6 589.9 590.7 588.3 584.6r 579.0 580.9 582.0 580.2 579.1 576.7 575.9 8 U.S. addressees 582.3 580.2 581.2 578.8 574.9 569.7 571.2 572.6 570.5 569.4 566.6 566.1 9 Non-U.S. addressees 10.3 9.7 9.6 9.5 9.7 9.3 9.7 9.4 9.8 9.7 10.1 9.8 10 Real estate 892.5 892.4 890.8 890.1 891.9" 892.2 898.0 903.7 907.5 910.6 914.4 917.7 11 Individual 355.4 355.5 358.4 361.9 362.3 364.4 367.5 368.9 372.7 374.9 376.1 380.6 12 Security 64.2 64.8 63.5 62.8 64.2r 62.3 68.6 71.4 81.5 79.7 82.6 7799..22 13 Nonbank financial institutions 44.7 43.6 45.1 44.6 44.2 45.0 45.9 46.0 46.6 46.9 46.1 45.0 14 Agricultural 35.2 35.0 34.5 34.3 34.0 34.1 34.3 34.3 34.8 34.8 3344..88 3355..00 15 State and political subdivisions 25.1 24.8 24.2 23.8 23.6r 23.1 23.0 22.7 22.8 22.7 22.4 22.2 16 Foreign banks 7.5 7.7 7.7 8.8 8.5 8.4 8.4 8.6 9.1 9.5 8.7 8.9 17 Foreign official institutions 2.8 2.8 2.9 3.2 3.2 3.2 3.1 3.2 3.2 3.1 3.4 3.5 18 Lease-financing receivables 30.9 30.9 30.4 30.6 30.6 30.7 30.9 31.2 31.6 31.7 31.8 32.1 19 All other loans 45.0 49.5 48.8 44.5 45.3 48.0 46.8 49.2 48.5 46.5 48.3 48.2 Not seasonally adjusted 20 Total loans, leases, and securities2 . 2,939.0 2,947.4 2,937.4 2,946.7 2,963.9 2,972.5 2,986.2 3,013.6 3,025.8 3,037.5 3,053.6 3,055.5 21 U.S. government securities 654.1 655.8 656.9 669.8 685.9 692.8 692.5 701.8 703.4 712.6 717.3 714.9 22 Other securities 178.3 176.2 175.0 176.6 178.7r 180.4 180.7 179.2 180.2 182.0 182.2 181.3 23 Total loans and leases 2,106.6 2,115.4 2,105.5 2,100.3 2,099.3r 2,099.3 2,113.0 2,132.6 2,142.2 2,142.9 2,154.1 2,159.4 24 Commercial and industrial ..... 600.8 600.6 596.4 595.9 596.3r 590.4 591.6 592.6 588.7 585.3 582.3 583.4 25 Bankers acceptances held ... 8.2 8.0 7.4 8.8 8.6 8.3 8.9 8.7 9.2 9.6 8.9 9.6 26 Other commercial and industrial 592.6 592.5 589.0 587.1 587.7r 582.1 582.7 583.9 579.5 575.8 573.4 573.9 27 U.S. addressees ... .j 582.8 583.0 579.5 577.5 578.2r 572.7 573.0 573.7 569.4 565.8 563.4 564.3 28 Non-U.S. addressees 9.8 9.5 9.5 9.5 9.5 9.4 9.7 10.2 10.1 10.0 10.0 9.5 29 Real estate 893.9 893.7 890.5 888.3 889.3r 891.1 898.0 904.0 907.8 911.3 915.2 918.7 30 Individual 356.3 360.0 362.5 361.9 359.8 361.7 365.7 367.0 370.4 374.4 377.8 381.0 31 Security 63.5 65.6 65.0 65.8 66.4 65.7 65.5 70.8 77.5 76.8 80.6 7788..88 32 Nonbank financial institutions 45.0 45.6 45.3 44.5 43.9 44.4 45.3 46.6 46.3 46.7 45.5 44.6 33 Agricultural 35.2 34.8 33.6 32.9 32.7 33.3 34.0 34.8 35.6 36.0 36.2 36.0 34 State and political subdivisions 25.2 24.8 24.0 23.7 23.7 23.2 23.0 22.7 22.7 22.7 22.5 22.3 35 Foreign banks 7.8 8.2 7.8 8.6 8.2 8.1 8.2 8.4 9.1 9.3 8.9 9.2 36 Foreign official institutions 2.8 2.8 2.9 3.2 3.2 3.2 3.1 3.2 3.2 3.1 3.4 3.5 37 Lease-financing receivables .... 30.8 30.9 30.8 30.8 30.8 30.8 30.9 31.2 31.4 31.5 31.6 32.0 38 All other loans 45.4 48.6 46.6 44.6 45.0 47.5 47.6 51.1 49.4 45.9 50.1 49.7 1. All commercial banks include domestically chartered insured banks, U.S. large branches and agencies and quarterly reports of all domestically chartered branches and agencies of foreign banks, New York state investment companies insured banks and all agencies, branches, investment companies, and Edge Act majority owned by foreign banks, and Edge Act and agreement corporations and agreement corporation engaged in banking. owned by domestically chartered foreign banks. Data are prorated averages of 2. Adjusted to exclude loans to commercial banks in the United States. Wednesday estimates for domestically chartered and foreign related institutions, 3. Includes nonfinancial commercial paper held. based on weekly reports of a sample of domestically chartered insured banks and 4. United States includes the fifty states and the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A19 1.25 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1992 1993r SSoouurrccee ooff ffuunnddss Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 11 TToottaall nnoonnddeeppoossiitt ffuunnddss22 307.7 311.4 311.2 309.6 319.9 329.4 325.1 335.7 355.3 366.3 377.6 382.0 22 NNeett bbaallaanncceess oowweedd ttoo rreellaatteedd ffoorreeiiggnn ooffffiicceess33.... 67.3 71.1 73.8 72.5 77.8 87.5 81.9 85.0 99.2 113.6 118.5 123.6 33 BBoorrrroowwiinnggss ffrroomm ootthheerr tthhaann ccoommmmeerrcciiaall bbaannkkss iinn UUnniitteedd SSttaatteess44 240.5r 240.4r 237.3 237.1 242.1 241.9 243.3 250.7 256.1 252.7 259.1 258.4 44 DDoommeessttiiccaallllyy cchhaarrtteerreedd bbaannkkss 154.8 155.9 156.6 156.9 161.5 166.9 166.2 173.7 179.8 177.4 181.8 183.4 55 FFoorreeiiggnn--rreellaatteedd bbaannkkss 85.6 84.4 80.7 80.2 80.5 75.0 77.1 77.0 76.4 75.3 77.4 75.0 Not seasonally adjusted 6 Total nondeposit funds 313.1r 311.4 310.0 313.9 324.7 325.6 329.8 334.7 349.0 361.2 372.3 384.6 7 Net balances owed to related foreign offices .. 68.9 75.2 76.4 74.4 78.5 84.6 84.0 83.1 95.9 109.9 116.2 124.7 8 Domestically chartered banks -12.4 -15.0 -15.8 -10.6 -7.0 -9.4 -9.7 -15.3 -15.2 -13.6 -11.2 -5.1 9 Foreign-related banks 81.4 90.2 92.3 84.9 85.5 94.0 93.7 98.4 111.2 123.5 127.4 129.9 10 Borrowings from other than commercial banks in United States4 244.1 236.2 233.6 239.6 246.2 241.0 245.8 251.6 253.1 251.3 256.1 259.9 11 Domestically chartered banks 159.3r 155^ 153.6 158.6 164.4 164.9 167.8 117733..55 117766..00 117766..11 118800..44 118844::88 12 Federal funds and security RP borrowings5 155.2r 151.0 150.0 155.4 161.1 161.4 164.0 169.6 171.7 172.0 176.0 180.3 13 Other6 4.1 4.0 3.6 3.2 3.3 3.5 3.8 3.8 4.3 4.0 4.4 4.5 14 Foreign-related banks 84.8 81.2 80.0 80.9 81.8 76.2 78.0 78.2 77.1 75.3 75.7 75.0 MEMO Gross large time deposits7 15 Seasonally adjusted 371.3 366.5 359.9 358.4 355.7 355.0 356.3 352.6 344.6 339.7 335.5 335.5 16 Not seasonally adjusted 371.1 365.5 358.0 358.0 356.5 354.2 357.9 354.1 344.3 340.8 335.8 334.6 U.S. Treasury demand balances at commercial banks 17 Seasonally adjusted 20.7 20.4 25.6 23.6 18.8 24.2 19.1 26.1 30.1 29.4 24.2 16.7 18 Not seasonally adjusted 16.5 19.5 33.1 29.5 17.4 20.3 20.3 26.5 25.6 23.8 28.6 17.2 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. State investment companies majority owned by foreign banks, and Edge Act and 5. Figures are based on averages of daily data reported weekly by approxiagreement corporations owned by domestically chartered and foreign banks. mately 120 large banks and on quarterly or annual data reported by other banks. Data in this table also appear in the Board's G.10 (411) monthly statistical 6. Figures are partly averages of daily data and partly averages of Wednesday release. For ordering 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 Domestic Nonfinancial Statistics • January 1994 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures Millions of dollars 1993 AAccccoouunntt Sept. lr Sept. 8r Sept. 15r Sept. 22r Sept. 29r Oct. 6 Oct. 13 Oct. 20 Oct. 27 ALL COMMERCIAL BANKING INSTITUTIONS2 Assets 1 Loans and securities 3,211,608 3,193,535 3,229,727 3,191,279 3,204,947 3,203,544 3,214,843 3,199,733 3,201,357 7 Investment securities 851,988 852,500 854,620 855,551 849,719 854,851 854,521 851,380 849,632 3 U.S. government securities 685,848 686,620 688,228 689,602 683,662 688,593 688,211 685,079 683,163 4 Other 166,140 165,880 166,392 165,949 166,057 166,258 166,311 166,302 166,469 5 Trading account assets 48,345 46,851 46,952 44,793 47,420 42,651 43,657 43,052 41,443 6 U.S. government securities 31,754 30,455 30,897 28,982 31,093 27,428 28,077 28,899 26,7% 7 Other securities 3,437 3,331 3,177 3,048 2,949 2,886 2,949 2,995 2,730 8 Other trading account assets 13,154 13,065 12,878 12,764 13,378 12,337 12,631 11,157 11,917 9 Total loans 2,311,275 2,294,185 2,328,155 2,290,935 2,307,807 2,306,042 2,316,665 2,305,300 2,310,282 10 Interbank loans 159,269 149,859 163,473 140,910 150,502 149,840 158,383 148,187 151,357 11 Loans excluding interbank 2,152,006 2,144,327 2,164,681 2,150,026 2,157,305 2,156,202 2,158,282 2,157,113 2,158,925 12 Commercial and industrial 582,730 578,336 583,879 583,227 583,620 582,831 582,186 583,297 583,400 N Real estate 913,943 915,389 915,852 912,838 916,616 918,096 920,321 918,400 917,380 14 Revolving home equity 74,775 74,737 74,775 74,769 74,849 74,793 74,734 74,585 74,487 15 Other 839,167 840,652 841,078 838,070 841,767 843,304 845,587 843,815 842,892 16 Individual 376,148 375,441 377,298 378,461 380,079 379,422 380,451 381,082 382,305 17 All other 279,186 275,161 287,652 275,499 276,989 275,853 275,324 274,334 275,841 18 Total cash assets 243,858 228,727 244,038 210,102 220,056 209,613 232,154 216,556 214,893 19 Balances with Federal Reserve Banks 31,777 33,129 31,572 34,234 31,652 29,304 29,777 32,489 30,628 20 Cash in vault 33,064 33,660 33,878 33,515 33,968 31,654 34,571 33,998 34,174 21 Demand balances at U.S. depository institutions.. 33,512 32,589 35,726 28,893 31,413 29,472 34,455 30,843 31,808 22 Cash items 107,458 90,033 104,159 75,151 83,853 80,243 93,473 80,501 77,417 23 Other cash assets 38,048 39,318 38,703 38,309 39,171 38,939 39,879 38,725 40,694 24 Other assets 272,105 278,998 277,540 268,868 272,500 281,764 279,335 264,072 268,483 25 Total assets 3,727,571 3,701,261 3,751,304 3,670,249 3,697,503 3,694,921 3,726,332 3,680,360 3,684,732 Liabilities 26 Total deposits 2,546,977 2,533,452 2,571,198 2,471,211 2,492,119 2,516,429 2,533,595 2,492,698 2,488,437 27 Transaction accounts 832,032 811,643 854,602 767,739 792,157 804,405 822,038 792,890 788,007 28 Demand, U.S. government 5,871 3,048 26,292 3,945 3,271 2,979 2,916 3,216 3,028 29 Demand, depository institutions 44,719 42,554 46,653 37,352 38,929 37,857 44,463 38,874 39,520 30 Other demand and all checkable deposits 781,442 766,041 781,658 726,442 749,957 763,569 774,660 750,800 745,460 31 Savings deposits (excluding checkable) 771,828 778,848 773,760 767,010 764,448 776,430 777,838 769,751 770,951 32 Small time deposits 610,173 609,371 608,333 606,320 606,062 605,660 604,829 602,956 601,609 33 Time deposits over $100,000 332,945 333,590 334,503 330,143 329,452 329,934 328,889 327,102 327,870 34 Borrowings 518,843 501,551 521,960 532,690 533,023 510,220 529,030 517,523 510,938 35 Treasury tax and loan notes 24,817 10,561 12,531 34,553 35,277 12,636 11,849 9,730 12,943 36 Other 494,026 490,990 509,429 498,137 497,746 497,584 517,181 507,793 497,995 37 Other liabilities 367,320 368,423 360,625 367,635 377,001 371,706 366,304 371,783 387,%5 38 Total liabiUties 3,433,140 3,403,426 3,453,782 3,371,536 3,402,143 3,398,355 3,428,928 3,382,004 3,387,339 39 Residual (assets less liabilities)3 294,431 297,835 297,522 298,713 295,360 296,565 297,404 298,357 297,393 Footnotes appear on 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 Account Sept. lr Sept. 8r Sept. 15r Sept. 22r Sept. 29" Oct. 6 Oct. 13 Oct. 20 Oct. 27 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 Assets 5 6 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 8 0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 9 T L o o B D T C T I t a n a o r a a n e l v O a I U L O U O l t s m s n a a e d h c o t t t . . t l n s R A I C i a a h a h h S S a e n n t i c n n s l e e e e . o . l m n r n g d o R h e O l d d r r b r a m s g g i s a e l o v a e a v t t s a o o n b s e n m h n v r t a c i w e e s e s v v h a x a t d e k u o c c s s e c d l e e i e c r u o l l t u e t s a r u r t r r l v i a l h a c e u t r n u n n n o r s t i l i c i i n e c g d n m m a t F a t u i t e g i i n l e e n e e r e a s s a s i d a s n g n c h t s a n e i t t c o s e t i r d o m e n s s s a u U t e e l t i s e e n c c n . R r t u u S d e b r r e . u q a a i i s s u s t t d n e i i t s i e e k e r r t e i s s y p v t a s o e l s B it a o n ry k s i nstitutions . 2 2 1 , , , 8 0 7 6 4 7 8 3 2 2 8 1 1 1 5 2 3 7 4 7 2 9 3 3 3 6 1 1 7 8 3 4 1 0 3 3 6 2 7 8 4 9 1 1 0 3 5 8 7 6 9 2 3 2 3 5 8 , , , , , , , , , , , , , , , , , , , , , , 7 5 3 7 1 3 0 0 7 8 8 0 7 1 2 1 1 0 4 1 3 1 7 1 4 7 1 6 4 5 8 7 1 3 6 1 4 3 6 3 0 5 1 5 1 5 5 5 5 2 4 4 4 6 6 7 3 3 8 1 4 7 8 4 2 3 2 2 1 , , , 0 6 8 7 4 8 7 3 2 2 8 1 1 1 3 4 4 7 2 3 7 3 3 8 7 1 0 6 9 3 8 4 1 2 6 5 6 0 7 6 4 7 0 2 3 5 6 1 7 2 1 6 3 2 3 9 , , , , , , , , , , , , , , , , , , , , , , 0 0 8 8 7 7 4 6 4 5 6 4 7 7 3 6 0 0 3 7 0 9 5 8 1 3 5 2 7 5 5 9 2 4 7 5 6 9 3 6 6 6 3 5 7 8 9 7 1 7 9 4 5 5 5 1 4 4 9 9 3 3 9 5 1 6 2 2 1 , , , 7 8 0 6 4 7 8 3 2 2 9 1 1 1 7 4 7 3 6 3 3 9 3 3 3 3 2 7 0 6 1 4 1 3 0 6 9 4 3 5 9 6 3 0 0 0 4 3 4 7 0 8 7 3 2 8 1 , , , , , , , , , , , , , , , , , , , , , , 9 7 7 8 9 6 2 8 2 6 7 7 1 1 2 8 1 0 1 8 4 5 5 9 4 7 3 4 3 9 3 4 0 6 4 7 9 2 5 2 3 7 1 6 2 7 6 5 9 9 8 5 5 0 7 3 1 7 8 0 0 4 0 8 9 9 2 2 1 , , , 8 0 7 6 4 8 7 3 2 8 1 1 1 4 3 0 8 3 3 2 7 3 2 7 1 7 6 9 3 8 1 4 1 8 4 0 5 0 7 3 8 7 0 2 4 3 8 5 3 0 3 7 2 2 7 3 , , , , , , , , , , , , , , , , , , , , , , 5 4 7 8 8 5 9 2 6 4 1 7 7 4 1 3 0 6 6 7 8 5 2 7 5 9 0 8 9 8 7 1 7 8 5 6 6 3 6 8 6 4 8 6 3 7 0 3 4 2 0 7 5 5 2 6 1 1 9 5 6 6 4 8 9 9 2 2 1 , , , 0 7 8 6 4 8 7 3 2 8 1 1 1 2 7 4 7 3 4 3 3 3 3 2 8 9 6 1 8 1 4 2 % 9 0 5 7 3 4 4 3 1 1 0 9 2 0 4 9 6 0 3 2 4 2 , , , , , , , , , , , , , , , , , , , , , , 7 8 4 8 9 8 3 0 0 9 3 2 9 5 9 1 2 0 4 1 3 4 0 0 2 2 4 3 5 9 8 5 4 1 0 8 5 0 0 4 0 7 7 7 8 1 0 9 3 1 7 3 3 7 9 1 1 5 9 5 5 9 7 9 2 8 2 2 1 , , , 0 8 7 6 4 8 7 2 3 8 1 1 1 2 3 4 2 7 3 8 5 3 9 1 2 2 7 7 9 7 1 2 4 8 8 7 2 7 0 1 4 2 0 8 7 5 8 2 8 0 9 9 2 9 2 2 , , , , , , , , , , , , , , , , , , , , , , 8 9 6 6 4 6 7 1 9 0 3 6 7 5 8 8 4 4 3 3 7 9 5 5 4 6 2 2 0 2 2 7 1 1 6 9 2 1 3 2 4 7 8 7 5 1 1 8 8 0 4 6 4 9 9 6 0 3 5 2 7 2 3 1 6 6 2 2 1 , , , 8 0 7 6 4 7 9 8 3 2 2 1 1 4 6 3 7 3 2 3 9 7 2 3 9 0 0 1 8 7 3 1 4 3 3 9 6 0 8 7 4 0 0 4 8 8 2 3 5 9 0 2 2 2 2 4 , , , , , , , , , , , , , , , , , , , , , , 6 2 3 0 8 9 7 8 7 7 5 2 1 9 7 9 8 4 9 1 6 8 5 3 7 7 8 9 3 4 6 6 5 3 3 4 5 6 3 4 5 0 4 5 7 9 7 7 6 0 4 2 2 7 7 8 3 8 3 6 1 4 1 0 9 6 2 2 1 , , , 8 0 7 6 4 7 8 3 2 8 1 1 1 4 7 4 2 2 3 3 7 3 8 % 3 2 7 1 9 7 2 4 1 9 0 6 3 8 3 1 1 2 4 1 9 9 5 2 7 3 2 2 1 0 0 , , , , , , , , , , , , , , , , , , , , , , 3 0 0 9 1 8 8 7 0 9 5 4 3 3 8 6 0 4 1 2 % % 8 4 5 4 8 9 4 5 8 8 9 9 5 5 5 5 6 5 8 0 2 2 7 2 2 4 6 9 4 0 2 5 4 5 6 6 4 7 3 0 9 0 2 2 1 , , , 8 0 7 6 4 7 8 3 2 8 1 1 1 4 3 2 7 3 2 3 7 9 9 8 2 3 3 7 6 1 1 4 2 8 1 8 3 0 3 1 2 4 5 6 8 2 0 9 4 4 9 1 2 5 4 7 , , , , , , , , , , , , , , , , , , , , , , 4 1 7 2 9 5 4 2 7 4 9 4 3 3 8 1 4 6 9 7 1 7 8 6 4 5 5 8 7 2 8 1 2 3 8 0 2 0 3 3 1 5 % % 4 2 3 8 9 6 2 2 7 7 6 0 6 5 5 2 9 7 3 5 61 Cash items 15,978 16,782 16,875 16,939 17,098 17,163 18,157 17,345 18,281 62 Other cash assets 185,062 189,070 187,611 182,466 183,163 190,645 191,705 179,987 185,501 63 Other assets 64 Total assets 3,254,450 3,231,551 3,270,679 3,1%,925 3,219,692 3,225,781 3,257,847 3,211,131 3,211,241 Liabilities 65 Total deposits 2,405,447 2,392,470 2,427,147 2,328,864 2,347,678 2,376,030 2,394,206 2,353,487 2,349,452 66 Transaction accounts 820,442 800,462 842,324 754,933 778,517 792,203 810,242 780,865 777,002 67 Demand, U.S. government 5,870 3,048 26,288 3,945 3,271 2,979 2,915 3,215 3,027 68 Demand, depository institutions 42,224 39,981 44,192 34,938 36,258 35,233 41,917 36,512 37,108 69 Other demand and all checkable deposits 772,347 757,433 771,844 716,050 738,989 753,991 765,410 741,137 736,867 70 Savings deposits (excluding checkable) 767,409 774,419 769,374 762,705 760,203 772,122 773,378 765,366 766,478 7 7 7 7 7 7 1 4 2 3 5 6 O Bo t T T O S h r m r r i e t m o e h r a a w e e l l s r i l i a u d n t b r i e g y i m p s l i o e t t a i s e x d i s t e s a p n o o d v s i e l t r o s a $ n 1 0 n 0 o ,0 te 0 s 0 4 6 2 3 1 2 1 8 0 0 4 4 3 8 9 7 4 , , , , , , 8 3 1 3 7 8 1 6 9 7 3 6 7 1 7 8 0 6 6 2 4 3 1 9 0 1 0 1 4 0 7 0 1 0 2 , , , , , , 7 0 5 3 9 5 6 8 0 2 2 6 4 4 5 5 3 1 6 4 3 2 1 9 0 0 0 1 4 5 6 7 9 2 1 , , , , , , 1 0 4 6 3 5 0 3 7 1 3 3 4 7 7 2 5 1 6 2 4 3 1 3 9 3 0 0 4 4 5 0 4 7 1 , , , , , , 8 5 4 0 1 9 8 5 4 0 3 9 8 3 1 9 3 3 6 4 3 2 1 9 3 0 3 0 4 5 8 3 3 5 6 , , , , , , 2 1 4 8 2 1 7 2 0 0 5 5 7 8 5 6 1 3 6 4 3 2 1 9 0 0 0 1 4 5 3 7 8 2 8 , , , , , , 1 4 2 8 3 6 9 9 0 2 5 3 3 7 8 9 8 6 4 6 4 2 1 1 0 2 0 4 1 3 2 5 8 3 1 , , , , , , 6 5 4 0 7 8 3 6 5 2 8 4 7 4 3 2 6 9 4 6 2 4 1 0 0 1 0 4 9 7 0 6 6 5 , , , , , , 7 1 7 9 5 3 9 3 1 2 4 6 0 0 1 0 6 8 4 5 2 4 1 0 9 0 1 1 5 2 9 6 5 2 2 , , , , , , 0 3 6 0 9 3 9 2 4 4 5 4 7 6 7 3 8 0 77 Total liabilities 2,963,021 2,936,718 2,976,158 2,901,213 2,927,334 2,932,217 2,963,445 2,915,775 2,916,849 78 Residual (assets less liabilities)3 291,429 294,833 294,521 295,712 292,359 293,564 294,402 295,355 294,392 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 investment corporations majority owned by foreign banks. Data are estimates securities data are estimates for the last Wednesday of the month based on a for the last Wednesday of the month based on a sample of weekly reporting sample of weekly reporting banks and quarter-end condition reports. foreign-related and domestic institutions and quarter-end condition reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • January 1994 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1993 AAccccoouunntt Sept. 1 Sept. 8 Sept. 15r Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 ASSETS 1 Cash and balances due from depository institutions 135,40^ 120,015 135,185 110,278 115,749r 107,238 119,436 113,626 109,610 2 U.S. Treasury and government securities 305,747 305,009 305,666 303,939" 301,832r 302,845 302,856 301,586 297,687 3 Trading account 28,814 27,841 28,292 25,858 26,905 24,537 25,228 26,106 24,087 4 Investment account 276,933 277,168 277,374 278,082r 274,926r 278,308 277,628 275,480 273,600 5 Mortgage-backed securities1 86,712 86,613 85,766 87,263 87,215 8877,,118899 8866,,771177 8855,,772299 8855,,337777 All others, by maturity 6 One year or less 5500,,990055 50,735 50,761 50,092r 48,300" 48,389 48,721 49,126 48,330 7 One year through five years 69,229r 70,199" 71,559 71,657r 71,234r 71,524 71,554 71,782 72,641 8 More than five years 70,087r 69,62 lr 69,288 69,070 68,177 71,205 70,636 68,844 67,252 9 Other securities 57,156 57,195 56,939 56,549 56,277 56,985 57,086 57,353 56,598 10 Trading account 2,832 2,772 2,614 2,717 2,629 2,621 2,684 2,731 2,467 11 Investment account 54,325 54,423 54,326 53,831 53,647 54,364 54,403 54,622 54,132 12 State and political subdivisions, by maturity 19,687 19,742 19,810 19,919 19,997 19,919 19,948 20,069 20,126 13 One year or less 3,548 3,619 3,655 3,701 3,761 3,819 3,795 3,826 3,845 14 More than one year 16,139 16,123 16,154 16,218 16,236 16,100 16,153 16,243 16,281 15 Other bonds, corporate stocks, and securities 34,638 34,681 34,516 33,912 33,650 34,445 34,454 34,553 34,005 16 Other trading account assets 13,039 12,952 12,763 12,650 13,265 12,224 12,517 11,045 11,805 17 Federal funds sold2 93,973 86,414 102,670 82,726 87,655 85,522 92,402 78,905 82,888 18 To commercial banks in the United States 57,861 49,600 60,424 45,736 52,365 48,998 54,310 42,963 48,212 19 To nonbank brokers and dealers 31,779 31,7% 36,209 31,301 29,664 30,738 32,962 30,365 29,723 20 To others3 4,333 5,018 6,037 5,689 5,626 5,785 5,130 5,577 4,953 21 Other loans and leases, gross 991,880r 987,162r 993,309 988,109 995,402r 995,941 999,827 998,168 9%,392 22 Commercial and industrial 270,112r 267,748r 271,267 270,697r 271,309 270,743 270,510 270,973 270,706 23 Bankers acceptances and commercial paper 3,308 3,231r 3,190 3,071 2,829 2,947 3,400 3,409 3,438 24 All other 266,804r 264,517r 268,077 267,626r 268,480 267,796 267,110 267,563 267,268 25 U.S. addressees 265,222r 263,0101 266,562 266,098r 266,958 266,407 265,719 266,087 265,842 26 Non-U.S. addressees 1,582 1,507 1,515 1,528 1,522 1,389 1,391 1,477 1,426 27 Real estate loans 403,082r 404,212r 403,921 401,318r 403,275r 404,988 407,018 404,544 402,755 28 Revolving, home equity 43,926r 43,856r 43,879 43,653r 43,693r 43,706 43,670 43,550 43,480 29 All other 359,156r 360,355r 360,042 357,664r 359,582r 361,282 363,347 360,993 359,275 30 To individuals for personal expenditures 191,418r 190,797r 191,597 192,343r 193,437r 193,259 193,907 195,234 195,903 31 To financial institutions 37,340r 36,572r 35,664 35,964 36,949 38,566 40,834 39,540 38,595 32 Commercial banks in the United States 13,580 12,557 12,192 13,51lr 13,365 13,413 14,689 15,058 14,376 33 Banks in foreign countries 2,869 2,678 2,500 2,304 2,414 2,845 4,133 2,807 2,298 34 Nonbank financial institutions 20,891r 21,338r 20,972 20,149 21,170 22,308 22,011 21,675 21,921 35 For purchasing and carrying securities 18,984r 17,877 19,726 17,590 19,294 17,622 17,408 17,646 18,428 36 To finance agricultural production 5,802 5,800 5,775 5,736 5,796 5,841 5,848 5,660 5,672 37 To states and political subdivisions 13,587 13,442 13,380 13,448 13,398 13,214 13,327 13,263 13,028 38 To foreign governments and official institutions l,275r 1,262r 1,307 l,248r l,489r 1,460 1,445 1,561 1,382 39 All other loans 25,266r 24,447 25,624 24,698 25,288 24,955 24,236 24,300 24,404 40 Lease-financing receivables 25,013r 25,006r 25,047 25,068r 25,167 25,292 25,294 25,449 25,519 41 LESS: Unearned income 2,032r 2,018 2,008 2,055 2,033 2,000 1,999 1,980 1,996 42 Loan and lease reserve 35,743 35,968 36,017 35,924 35,604 35,214 35,218 35,186 35,153 43 Other loans and leases, net 954,104r 949,177 955,285 950,130 957,766r 958,727 962,609 961,002 959,244 44 Other assets 169,798r 172,165r 172,482 168,133r 168,717r 174,360 174,484 167,072 172,330 45 Total assets l,729,218r l,702,927r 1,740,989 l,684,405r 1,701,260r 1,697,900 1,721,390 1,690,590 1,690,162 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 Account Sept. 1 Sept. 8 Sept. 15" Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 LIABILITIES 46 Deposits l,144,815r 1,128,798" 1,163,355 1,090,205" 1,103,254" 1,116,848 1,128,535 1,102,291 1,098,309 47 Demand deposits 312,164r 291,181" 330,451 271,701" 290,284" 288,563 302,421 285,886 283,722 48 Individuals, partnerships, and corporations 253,397r 239,399" 255,699 222,705" 236,876" 240,379 250,451 234,296 232,517 49 Other holders 58,767r 51,783" 74,752 48,996" 53,407" 48,183 51,970 51,590 51,206 50 States and political subdivisions 9,857 7,952 9,242 8,932 8,672 8,083 8,427 9,056 8,842 51 U.S. government 3,953r 1,865" 20,436 2,881" 2,145" 1,690 1,664 1,956 1,898 52 Depository institutions in the United States ... 27,578 24,929 28,668 20,972" 22,406 21,825 26,656 22,529 22,850 53 Banks in foreign countries 5,084 5,451 5,503 5,760 5,559 4,861 5,316 5,284 5,310 54 Foreign governments and official institutions .. 632 689 629 618 556 566 661 618 669 55 Certified and officers' checks 11,664r 10,897" 10,275 9,832" 14,069" 11,158 9,246 12,149 11,637 56 Transaction balances other than demand deposits . 122,574 123,429 123,601 118,063 117,095 121,929 120,206 119,096 117,951 57 Nontransaction balances 710,076 714,188 709,303 700,442" 695,875 706,357 705,908 697,309 696,635 58 Individuals, partnerships, and corporations 686,702r 691,085" 686,859 678,101" 673,821" 684,551 684,033 675,605 674,918 59 Other holders 23,374r 23,103" 22,444 22,341" 22,054" 21,806 21,875 21,703 21,717 60 States and political subdivisions 18,863 18,919 18,262 18,172 18,185 17,838 17,828 17,648 17,611 61 U.S. government 2,633 2,317 2,310 2,310 1,991 2,212 2,235 2,230 2,245 62 Depository institutions in the United States ... 1,569" 1,539" 1,539 1,527" 1,547" 1,444 1,481 1,511 1,544 63 Foreign governments, official institutions, and banks . 308 328 333 332 330 312 330 315 317 64 Liabilities for borrowed money5 317,547 307,965 312,500 328,630" 329,114" 309,090 325,671 317,237 314,980 65 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 0 75 0 66 Treasury tax and loan notes , 21,443r 9,165 10,881 28,774" 30,308" 10,945 10,018 8,770 11,158 67 Other liabilities for borrowed money 296,105 298,800 301,619 299,857" 298,806" 298,146 315,653 308,392 303,822 68 Other liabilities (including subordinated notes and debentures) 113,321r 111,707" 110,287 110,715" 115,337" 117,534 112,695 114,571 121,474 69 Total liabilities 1,575,684" 1,548,471" 1,586,142 1,529,550" 1,547,705" 1,543,472 1,566,901 1,534,099 1,534,762 70 Residual (total assets less total liabilities)7 153,534 154,456 154,847 154,855 153,555" 154,428 154,488 156,492 155,400 7 7 1 2 T T M i o E m t M a e l O d l o e a p n o s s i a ts n d i n l e a a m se o s u , n g ts r o o s f s , $ a 1 d 0 j 0 u ,0 s 0 te 0 d o , r p l m us o r s e e curities l,3 1 9 0 0 2 , , 3 3 5 39 4 " r 1,3 1 8 0 6 2 , , 5 7 7 1 5 6 " " 1,3 1 9 0 8 1 , , 7 7 3 7 1 1 1,3 9 8 9 4 , , 6 7 4 27 3 " " 1,3 9 8 7 8 , , 3 7 8 0 8 0 " " 1,3 1 9 0 1 0 , , 1 1 0 4 5 7 1,3 9 9 9 5 , , 8 6 1 8 9 9 1,3 9 8 8 9 , , 3 0 8 3 5 8 1,3 9 8 9 2 , , 0 7 7 8 5 3 73 Loans sold outright to affiliates9 789 786 786 786 828 822 821 823 812 74 Commercial and industrial 402 402 402 402 401 401 401 401 393 75 Other 387 384 384 385 427 422 420 422 418 76 Foreign branch credit extended to U.S. residents'"... 21,299 21,828" 21,515 21,307" 20,691" 21,176 21,611 21,263 21,919 77 Net owed to related institutions abroad -14,007" -17,379" -16,386 -10,470" -9,641" -11,236 -9,443 -5,294 -4,558 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 Domestic Nonfinancial Statistics • January 1994 1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1993 AAccccoouunntt Sept. 1 Sept. 8 Sept. 15 Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 ASSETS 1 Cash and balances due from depository institutions 18,096 18,325 18,324 18,018 1188,,779977 1188,,111177 1188,,336633 1177,,994466 1188,,887766 2 U.S. Treasury and government agency securities 33,571 33,267 33,324 33,405 32,542 3322,,776600 33,598 33,603 33,858 3 Other securities 8,406 8,311 8,382 8,372 8,497 88,,448888 8,470 8,461 8,667 4 Federal funds sold1 23,073 21,770 26,035 25,025 26,975 23,013 24,297 26,878 29,237 5 To commercial banks in the United States ... 5,462 4,871 7,295 6,550 7,791 4,965 6,811 7,439 7,550 6 To others 17,612 16,899 18,741 18,474 19,184 18,048 17,486 19,439 21,687 7 Other loans and leases, gross 161,705 158,976 161,693 160,633 159,255 157,252 156,496 157,138 156,706 8 Commercial and industrial 95,979 94,904 95,759 95,454 9955,,333355RR 9955,,117711 9955,,113355 9955,,111144 9955,,222299 9 Bankers acceptances and commercial paper 2,776 2,708 2,664 2,616 2,466 2,695 2,951 2,952 2,771 10 All other 93,203 92,196 93,095 92,838 92,869" 92,476 92,184 92,162 92,458 11 U.S. addressees 89,876 88,835 89,742 89,506 89,553R 89,229 88,973 88,992 89,251 12 Non-U.S. addressees 3,327 3,360 3,353 3,332 3,316 3,246 3,210 3,170 3,206 13 Loans secured by real estate 31,516 31,500 31,403 31,301 31,226 31,300 31,240 31,223 31,176 14 To financial institutions 26,281 25,094 25,629 25,157 23,545 23,443 23,368 23,345 23,228 15 Commercial banks in the United States.. 5,248 5,253 5,411 5,219 5,628 5,522 5,548 5,710 5,473 16 Banks in foreign countries 2,208 2,202 2,288 2,051 1,946 2,023 2,078 2,119 2,176 17 Nonbank financial institutions 18,825 17,640 17,930 17,887 15,971 15,898 15,741 15,517 15,579 18 For purchasing and carrying securities 5,175 4,099 5,371 5,070 55,,223333 33,,992233 33,,339955 33,,771166 33,,332233 19 To foreign governments and official institutions 435 418 467 472 497 476 464 454 423 20 All other 2,319 2,959 3,065 3,178 3,419" 2,940 2,895 3,285 3,327 21 Other assets (claims on nonrelated parties) .. 31,060 31,814 31,553 30,764 32,466 30,942 31,089 30,322 31,416 22 Total assets3 299,435 297,234 304,327 299,665 302,511 296,875 296,322 296,755 299,419 LIABILITIES 23 Deposits or credit balances owed to other than directly-related institutions 90,944 90,850 92,160 91,297 93,056 90,006 89,691 89,748 90,607 2244 Demand deposits 4,589 4,530 4,991 5,230 55,,770066 44,,994477 44,,777766 44,,992299 44,,440066 25 Individuals, partnerships, and corporations 3,403 3,712 3,856 3,878 4,260 3,809 3,758 3,875 3,497 26 Other 1,186 818 1,135 1,351 1,445 1,138 1,018 1,055 909 27 Nontransaction accounts 86,355 86,320 87,169 86,068 8877,,335500 8855,,005599 8844,,991155 8844,,881199 8866,,220011 28 Individuals, partnerships, and corporations 59,466 60,054 61,263 60,438 60,570 58,581 58,053 57,943 57,939 29 Other 26,888 26,267 25,906 25,629 2266,,778800 2266,,447788 2266,,886622 2266,,887766 2288,,226622 30 Borrowings from other than directlyrelated institutions 80,645 76,788 86,750 78,680 76,345 78,929 79,180 77,095 72,845 31 Federal funds purchased 41,844 3388,,006644 4488,,118822 3399,,111122 3388,,000099 4433,,334488 4411,,447788 4422,,993366 3377,,886633 32 From commercial banks in the United States 13,633 11,291 19,563 9,475 12,027 11,931 12,427 9,033 9,993 33 From others 28,211 26,774 28,619 29,638 25,982 31,416 29,051 33,903 27,870 34 Other liabilities for borrowed money 38,801 38,723 38,568 3399,,556688 3388,,333366 3355,,558811 3377,,770011 3344,,115599 3344,,998833 35 To commercial banks in the United States 4,856 4,380 4,884 4,360 4,519 3,914 4,516 4,942 5,596 36 To others 33,945 34,343 33,684 35,208 33,817 31,668 33,185 29,216 29,386 37 Other liabilities to nonrelated parties 29,319 29,581 29,000 29,407 30,258 28,888 27,860 27,844 28,039 38 Total liabilities6 299,435 297,234 304,327 299,665 302,511 296,875 296,322 296,755 299,419 MEMO 39 Total loans (gross) and securities, adjusted7.. 216,045 212,200 216,729 215,665 213,850 211,025 210,502 212,931 215,445 40 Net owed to related institutions abroad 75,003 75,244 71,403 76,833 78,872 72,749 75,582 79,661 87,269 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 owed to related institutions abroad for U.S. branches and 3. Includes net due from related institutions abroad for U.S. branches and agencies of 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 1993 IItteemm 1988 1989 1990 1991 1992 Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 458,464 525,831 562,656 531,724 549,433 535,966 541,761 544,107 539,149 545,527 541,285 Financial companies1 Dealer-placed paper2 2 Total 159,777 183,622 214,706 213,823 228,260 210,230 214,558 221,834 210,224 216,245 215,077 3 Bank-related (not seasonally adjusted) 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 194,931 210,930 200,036 183,379 172,813 117755,,338844 174,558 117711,,447799 170,192 172,093 169,431 5 Bank-related (not seasonally adjusted) 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies5 103,756 131,279 147,914 134,522 148,360 150,352 152,645 150,794 158,733 157,189 156,777 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 66,631 62,972 54,771 43,770 38,200 35,317 34,927 34,149 33,120 32,572 33,041 By holder 8 Accepting banks 9,086 9,433 9,017 11,017 10,561 10,688 11,096 11,568 11,422 12,416r 12,522 9 Own bills 8,022 8,510 7,930 9,347 9,103 9,315 9,786 10,236 10,140 10,709" 10,679 10 Bills bought from other banks 1,064 924 1,087 1,670 1,458 1,372 1,310 1,333 1,282 1,707 1,843 Federal Reserve Banks7 11 Foreign correspondents 1,493 1,066 918 1,739 1,276 909 690 613 582 635 637 12 Others 56,052 52,473 44,836 31,014 26,364 23,720 23,141 21,967 21,116 19,521r 19,882 By basis 13 Imports into United States 14,984 15,651 13,095 12,843 12,212 10,746 10,274 10,066 10,149 10,422 10,773 14 Exports from United States 14,410 13,683 12,703 10,351 8,096 7,629 7,809 7,650 7,673 7,534 7,460 15 All other 37,237 33,638 28,973 20,577 17,893 16,942 16,844 16,433 15,299 14,616 14,808 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 dollar acceptances are gathered from approximately 100 3. Series were discontinued in January 1989. institutions. 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 dollar investors. acceptances for its own account. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Period Av r e a r te a ge Av r e a r t a e ge 10.50 1990 .. 10.01 1991— Jan. 9.52 1992— June .. 10.00 1991 .. 8.46 Feb. 9.05 July ... 1992 .. 6.25 Mar. 9.00 Aug. .. 9.50 Apr. 9.00 Sept. .. 9.00 1990— 10.11 May 8.50 Oct. ... 8.50 Feb. 10.00 June 8.50 8.00 Mar. 10.00 July 8.50 Dec. .. 7.50 Apr. 10.00 Aug. 8.50 6.50 May . 10.00 Sept. 8.20 1993— June 10.00 Oct. 8.00 Feb. .. 6.00 July . 10.00 Nov. 7.58 Mar. .. Aug. 10.00 Dec. 7.21 Sept. 10.00 May ... Oct. . 10.00 1992— Jan. 6.50 Nov. 10.00 Feb. 6.50 July ... Dec. 10.00 Mar. 6.50 Aug. .. Apr. 6.50 Sept. .. May . 6.50 Oct. ,,, 1. The prime rate is one of several base rates that banks use to price short-term size, based on the most recent Call Report. Data in this table also appear in the business loans. The table shows the date on which a new rate came to be the Board's H.15 (519) weekly and G.13 (415) monthly statistical releases. For predominant one quoted by a majority of the twenty-five largest banks by asset ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • January 1994 1.35 INTEREST RATES Money and Capital Markets Averages, percent per year; figures are averages of business day data unless otherwise noted 1993 1993, week ending 11999900 11999911 11999922 July Aug. Sept. Oct. Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 8.10 5.69 3.52 3.06 3.03 3.09 2.99 3.05 3.24 2.91 2.97 2.97 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 3.15 3.14 3.14 3.14 3.17 3.15 3.14 3.13 3.14 4 3-month 8.06 5.87 3.75 3.20 3.18 3.16 3.26 3.18 3.26 3.25 3.24 3.28 5 6-month 7.95 5.85 3.80 3.35 3.33 3.25 3.27 3.26 3.27 3.25 3.24 3.30 Finance paper, directly placed3,5,7 6 1-month 8.00 5.73 3.62 3.08 3.08 3.07 3.08 3.10 3.09 3.09 3.07 3.07 7 3-month 7.87 5.71 3.65 3.12 3.13 3.09 3.16 3.10 3.13 3.18 3.16 3.18 8 6-month 7.53 5.60 3.63 3.15 3.16 3.11 3.13 3.11 3.12 3.13 3.12 3.14 Bankers acceptances* 5,8 9 3-month 7.93 5.70 3.62 3.12 3.10 3.07 3.19 3.10 3.18 3.17 3.18 3.24 10 6-month 7.80 5.67 3.67 3.26 3.23 3.17 3.19 3.17 3.18 3.17 3.18 3.24 Certificates qf deposit, secondary marker9 11 1-month 8.15 5.82 3.64 3.10 3.09 3.09 3.09 3.10 3.10 3.09 3.09 3.10 12 3-month 8.15 5.83 3.68 3.16 3.14 3.12 3.24 3.16 3.23 3.22 3.23 3.29 13 6-month 8.17 5.91 3.76 3.34 3.32 3.24 3.25 3.24 3.23 3.23 3.24 3.30 14 Eurodollar deposits, 3-month3,10 8.16 5.86 3.70 3.17 3.14 3.08 3.26 3.14 3.25 3.25 3.25 3.29 U.S. Treasury bills Secondary market3,5 15 3-month 7.50 5.38 3.43 3.04 3.02 2.95 3.02 2.92 2.97 3.02 3.04 3.06 16 6-month 7.46 5.44 3.54 3.16 3.14 3.06 3.12 3.04 3.08 3.10 3.14 3.18 17 1-year , 7.35 5.52 3.71 3.33 3.30 3.22 3.25 3.21 3.21 3.22 3.27 3.32 Auction average ,5,11 18 3-month 7.51 5.42 3.45 3.05 3.05 2.96 3.04 2.90 2.96 3.04 3.06 3.08 19 6-month 7.47 5.49 3.57 3.15 3.17 3.06 3.13 3.02 3.08 3.12 3.14 3.19 20 1-year 7.36 5.54 3.75 3.42 3.30 3.27 3.25 n.a. n.a. n.a. 3.25 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 7.89 5.86 3.89 3.47 3.44 3.36 3.39 3.35 3.35 3.36 3.40 3.46 22 2-year 8.16 6.49 4.77 4.07 4.00 3.85 3.87 3.83 3.83 3.82 3.87 3.97 23 3-year 8.26 6.82 5.30 4.43 4.36 4.17 4.18 4.17 4.15 4.09 4.17 4.28 24 5-year 8.37 7.37 6.19 5.09 5.03 4.73 4.71 4.72 4.69 4.62 4.69 4.82 25 7-year 8.52 7.68 6.63 5.48 5.35 5.08 5.05 5.03 5.03 4.95 5.04 5.19 26 10-year 8.55 7.86 7.01 5.81 5.68 5.36 5.33 5.33 5.33 5.24 5.31 5.44 27 20-year n.a. n.a. n.a. n.a. n.a. n.a. 6.07 6.12 6.09 5.99 6.03 6.14 28 30-year 8.61 8.14 7.67 6.63 6.32 6.00 5.94 5.99 5.99 5.87 5.89 5.99 Composite 8.74 8.16 7.52 6.34 6.18 5.94 5.90 5.94 5.92 5.82 5.86 5.99 29 More than 10 years (long-term) STATE AND LOCAL NOTES AND BONDS Moody's series13 6.96 6.56 6.09 5.27 5.37 n.a. n.a. 5.19 n.a. n.a. n.a. n.a. 30 Aaa 7.29 6.99 6.48 5.74 5.84 n.a. n.a. 5.70 n.a. n.a. n.a. n.a. 31 Baa 7.27 6.92 6.44 5.57 5.45 5.29 5.25 5.30 5.30 5.20 5.20 5.31 32 Bond Buyer series14 CORPORATE BONDS 9.77 9.23 8.55 7.50 7.19 6.98 6.97 7.00 7.02 6.92 6.92 7.03 33 Seasoned issues, all industries15 Rating group 9.32 8.77 8.14 7.17 6.85 6.66 6.67 6.69 6.70 6.62 6.63 6.73 34 Aaa 9.56 9.05 8.46 7.35 7.06 6.85 6.87 6.89 6.91 6.82 6.81 6.93 35 Aa 9.82 9.30 8.62 7.53 7.25 7.05 7.04 7.08 7.09 6.99 6.97 7.08 36 A 10.36 9.80 8.98 7.93 7.60 7.34 7.31 7.35 7.35 7.25 7.26 7.38 37 Baa 10.01 9.32 8.52 7.43 7.16 6.94 6.91 6.95 6.93 6.79 6.97 6.97 38 A-rated, recently offered utility bonds16 . MEMO Dividend-price ratio17 39 Preferred stocks 8.% 8.17 7.46 6.89 6.83 6.70 6.71 6.70 6.67 6.67 6.69 6.81 40 Common stocks 3.61 3.24 2.99 2.81 2.76 2.73 2.72 2.73 2.73 2.73 2.71 2.71 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 & Poor's corporate series. Preferred stock ratio is 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 ratio is based on the 500 stocks in the price index. 10. Bid rates for Eurodollar deposits at 11:00 a.m. London time. Data are for NOTE. Some of the data in this table also appear in the Board's H.15 (519) indication purposes only. weekly and G.13 (415) monthly statistical releases. For ordering address, see 11. Auction date for daily data; weekly and monthly averages computed on an inside front cover. 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 1993 IInnddiiccaattoorr 11999900 11999911 11999922 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading volume (averages of daily figures) CCCCoooommmmmmmmoooonnnn ssssttttoooocccckkkk pppprrrriiiicccceeeessss ((((iiiinnnnddddeeeexxxxeeeessss)))) 1111 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee ((((DDDDeeeecccc.... 33331111,,,, 1111999966665555 ==== 55550000)))) 183.66 206.35 229.00 243.41 248.12 244.72 246.02 247.16 247.85 251.93 254.86 257.53 2222 IIIInnnndddduuuussssttttrrrriiiiaaaallll 226.06 258.16 284.26 294.40 298.75 292.19 297.83 298.78 295.34 298.83 300.92 306.61 3333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn 158.80 173.97 201.02 226.96 229.42 237.97 237.80 234.30 238.30 250.82 247.74 254.04 4444 UUUUttttiiiilllliiiittttyyyy 90.72 92.64 99.48 109.45 112.53 113.78 111.21 113.27 116.27 118.72 122.32 120.49 5555 FFFFiiiinnnnaaaannnncccceeee 133.21 150.84 179.29 209.93 217.01 216.02 209.40 209.75 218.89 224.% 229.35 228.18 6666 SSSSttttaaaannnnddddaaaarrrrdddd &&&& PPPPoooooooorrrr''''ssss CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnn ((((1111999944441111----44443333 ==== 11110000))))'''' 335.01 376.20 415.75 441.76 450.15 443.08 445.25 448.06 447.29 454.13 459.24 463.90 7777 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee ((((AAAAuuuugggg.... 33331111,,,, 1111999977773333 ==== 55550000???? 338.32 360.32 391.28 409.39 418.56 418.54 429.72 436.13 434.99 444.75 454.91 472.73 VVVVoooolllluuuummmmeeee ooooffff ttttrrrraaaaddddiiiinnnngggg ((((tttthhhhoooouuuussssaaaannnnddddssss ooooffff sssshhhhaaaarrrreeeessss)))) 8888 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 156,359 179,411 202,558 288,540 251,170 279,778 255,843 250,230 247,574 247,324 261,770 280,503 9999 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 13,155 12,486 14,171 18,154 16,150 15,521 20,433 17,753 17,744 19,352 18,889 21,279 Customer financing (millions of dollars, end-of-period balances) 11110000 MMMMaaaarrrrggggiiiinnnn ccccrrrreeeeddddiiiitttt aaaatttt bbbbrrrrooookkkkeeeerrrr----ddddeeeeaaaalllleeeerrrrssss3333 28,210 36,660 43,990 44,290 45,160 47,420 48,630 49,550 49,080 52,760 53,700 n.a. FFFFrrrreeeeeeee ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss aaaatttt bbbbrrrrooookkkkeeeerrrrssss4444 11111111 MMMMaaaarrrrggggiiiinnnn aaaaccccccccoooouuuunnnnttttssss 8,050 8,290 8,970 9,790 9,650 9,805 9,560 9,820 9,585 9,480 10,030 n.a. 11112222 CCCCaaaasssshhhh aaaaccccccccoooouuuunnnnttttssss 19,285 19,255 22,510 22,190 21,395 21,450 21,610 22,625 21,475 21,915 23,170 n.a. Margin requirements (percent of market value and effective date)5 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 1133 MMaarrggiinn ssttoocckkss 1144 CCoonnvveerrttiibbllee bboonnddss 1155 SShhoorrtt ssaalleess OOO 80 65 55 65 50 60 50 50 50 50 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 Domestic Financial Statistics • January 1994 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1993 11999911 11999922 11999933 May June July Aug. Sept. Oct. U.S. budget1 1 Receipts, total 1,054,264 1,090,453 1,153,175 70,640 128,568 80,633 86,741 127,469 78,669 2 On-budget 760,380 788,027 841,241 44,518 98,662 57,146 62,060 98,609 55,865 3 Off-budget 293,885 302,426 311,934 26,122 29,906 23,487 24,681 28,860 22,804 4 Outlays, total 1,323,785 1,380,794 1,408,122 107,603 117,469 120,211 109,819 119,168 124,013 5 On-budget 1,082,098 1,128,455 1,142,110 83,208 103,475 96,245 84,953 91,039 100,490 6 Off-budget 241,687 252,339 266,012 24,395 13,994 23,965 24,867 28,130 23,523 7 Surplus or deficit (-), total -269,521 -290,340 -254,948 -36,963 11,099 -39,577 -23,078 8,300 -45,343 8 On-budget -321,719 -340,428 -300,869 -38,690 -4,813 -39,099 -22,893 7,570 -44,625 9 Off-budget 52,198 50,087 45,922 1,727 15,912 -478 -186 730 -719 Source of financing (total) 10 Borrowing from the public 276,802 310,918 248,619 30,832 24,757 1,055 54,301 -9,346 4,255 11 Operating cash (decrease, or increase (-)) ... -1,329 -17,305 6,283 20,196 -40,288 32,447 -12,652 -11,713 33,646 12 Other -5,952 -3,273 46 -14,065 4,432 6,075 -18,571 12,759 7,442 MEMO 13 Treasury operating balance (level, end of period) 41,484 58,789 52,506 20,300 60,588 28,141 40,793 52,506 18,860 14 Federal Reserve Banks 7,928 24,586 17,289 5,787 28,386 5,818 7,975 17,289 6,032 15 Tax and loan accounts 33,556 34,203 35,217 14,514 32,202 22,324 32,818 35,217 12,828 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 has 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. U.S. Department of the Treasury, Monthly Treasury Statement of item in the Monthly Treasury Statement beginning in 1990. Receipts and Outlays of the U.S. Government and Office of Management and 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota Budget, Budget of the U.S. Government. 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 SSSooouuurrrccceee ooorrr tttyyypppeee 1991 1992 1993 1993 11999922 11999933 H2 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources 1,090,453 1,153,175 519,165 560,318 540,472 593,200 86,741 127,469 78,669 2 Individual income taxes, net 475,964 509,680 234,939 236,576 246,938 255,556 39,440 55,653 37,680 3 Withheld 408,352 430,427 210,552 198,868 215,589" 210,066 36,751 31,991 34,284 4 Presidential Election Campaign Fund 30 28 1 20 10 25 0 0 27 5 Nonwithheld 149,342 154,772 33,296 110,995 39,286" 113,482 3,928 25,579 4,053 6 Refunds 81,760 75,546 8,910 73,308 7,939" 67,468 1,235 1,918 684 Corporation income taxes 7 Gross receipts 117,951 131,548 54,016 61,682 58,022 69,044 2,422 25,909 44,,226699 8 Refunds 17,680 14,027 8,649 9,403 7,219 7,198 479 1,398 2,111 9 Social insurance taxes and contributions, net 413,689 428,300 186,839 224,569 192,599 227,177 36,657 37,768 30,828 10 Employment taxes and contributions2 385,491 396,939 175,802 208,110 180,758 208,776 31,447 36,908 29,440 11 Self-employment taxes and contributions3 24,421 20,604 3,306 20,434 3,988 16,270 0 4,231 00 12 Unemployment insurance 23,410 26,556 8,721 14,070 9,397 16,074 4,810 413 1,046 13 Other net receipts4 4,788 4,805 2,317 2,389 2,445 2,326 400 447 343 14 Excise taxes 45,569 48,057 24,429 22,389 23,456 23,398 4,295 4,385 3,597 15 Customs deposits 17,359 18,802 8,694 8,146 9,497 8,860 1,828 1,646 1,708 16 Estate and gift taxes 11,143 12,577 5,507 5,701 5,733 6,494 1,150 1,049 990 17 Miscellaneous receipts5 26,459 18,239 13,390 10,658 11,446 9,867 1,429 2,456 1,708 OUTLAYS 18 All types 1,380,794 1,408,122 694,345 704,266 723,515 673,328 109,819 119,168 124,013 19 National defense 298,350 290,590 147,669 147,065 155,222" 140,535 21,278 24,903 24,281 20 International affairs 16,107 17,175 7,691 8,540 9,916" 6,565 493 1,556 4,732 21 General science, space, and technology 16,409 17,055 8,472 7,951 8,521 7,996 1,556 1,388 1,421 22 Energy 4,499 4,445 1,698 1,442 3,109 2,462 400 -276 345 23 Natural resources and environment 20,025 20,088 11,130 8,594 11,467 8,588 1,487 1,907 1,911 24 Agriculture 15,205 20,257 7,418 7,526 8,866" 11,824 171 205 1,442 25 Commerce and housing credit 10,118 -23,532 36,534 15,615 -7,694 -15,112 -2,855 3,003 377 26 Transportation 33,333 35,238 17,074 15,651 18,425" 16,077 3,270 3,760 3,133 27 Community and regional development 6,838 10,395 3,783 3,903 4,464" 4,935 876 1,168 898 28 Education, training, employment, and social services 45,250 48,872 21,114 23,767 21,003" 23,983 4,937 4,326 33,,558866 29 Health 89,497 99,249 41,459 44,164 47,232 49,882 8,632 9,080 9,315 30 Social security and Medicare 406,569 435,137 193,098 205,500 232,109 195,933 36,334 36,697 36,267 31 Income security 196,891 207,933 87,693 104,537 98,613" 108,559 14,925 15,6% 17,342 32 Veterans benefits and services 34,133 35,715 17,425 15,597 18,561 16,385 2,063 3,010 2,819 33 Administration of justice 14,426 14,983 6,574 7,435 7,238 7,463 1,122 1,415 1,011 34 General government 12,945 13,039 6,794 5,050 8,223" 5,205 848 1,712 640 35 Net interest6 199,439 198,870 99,149 100,161 98,703" 99,635 17,473 15,440 17,082 36 Undistributed offsetting receipts' -39,280 -37,386 -20,436 -18,229 -20,628" -17,035 -3,187 -5,823 -2,593 1. Functional details do not sum to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. revisions to monthly totals have not been distributed among functions. Fiscal year 6. Includes interest received by trust funds. total for outlays does not correspond to calendar year data because revisions from 7. Consists of rents and royalties for the outer continental shelf and U.S. the Budget have not been fully distributed across months. government contributions for employee retirement. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 3. Old-age, disability, and hospital insurance. Receipts and Outlays of the U.S. Government, and the U.S. Office of Manage- 4. Federal employee retirement contributions and civil service retirement and ment and Budget, Budget of the U.S. Government, Fiscal Year 1994. disability fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • January 1994 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1991 1992 1993 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 3,683 3,820 3,897 4,001 4,083 4,196 4,250 4,373 n.a. 2 Public debt securities 3,665 3,802 3,881 3,985 4,065 4,177 4,231 4,352 4,412 3 Held by public 2,746 2,833 2,918 2,977 3,048 3,129 3,188 3,252 n.a. 4 Held by agencies 920 969 964 1,008 1,016 1,048 1,043 1,100 n.a. 5 Agency securities 18 19 16 16 18 19 20 21 n.a. 6 Held by public 18 19 16 16 18 19 20 21 n.a. 7 Held by agencies 0 0 0 0 0 0 0 0 n.a. 8 Debt subject to statutory limit 3,569 3,701 3,784 3,891 3,973 4,086 4,140 4,256 4,316 9 Public debt securities 3,569 3,706 3,783 3,890 3,972 4,085 4,139 4,256 4,315 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 4,370 4,900 1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, SOURCES. U.S. Department of the Treasury, Monthly Statement of the Public specified participation certificates, notes to international lending organizations, Debt of the United States and Treasury Bulletin. and District of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1992 1993 TTyyppee aanndd hhoollddeerr 11998899 11999900 11999911 11999922 Q4 Q1 Q2 Q3 1 Total gross public debt 2,953.0 3,364.8 3,801.7 4,177.0 4,177.0 4,230.6 4,352.0 4,411.5 By type 2 Interest-bearing 22,,993311..88 3,362.0 3,798.9 4,173.9 4,173.9 4,227.6 4,349.0 4,408.6 3 Marketable 1,945.4 2,195.8 2,471.6 2,754.1 2,754.1 2,807.1 2,860.6 2,904.9 4 Bills 430.6 527.4 590.4 657.7 657.7 659.9 659.3 658.4 5 Notes 1,151.5 1,265.2 1,430.8 1,608.9 1,608.9 1,652.1 1,698.7 1,734.2 6 Bonds 348.2 388.2 435.5 472.5 472.5 480.2 487.6 497.4 7 Nonmarketable1 986.4 1,166.2 1,327.2 1,419.8 1,419.8 1,420.5 1,488.4 1,503.7 8 State and local government series 163.3 160.8 159.7 153.5 153.5 151.6 152.8 149.5 9 Foreign issues2 6.8 43.5 41.9 37.4 37.4 37.0 43.0 42.5 10 Government 6.8 43.5 41.9 37.4 37.4 37.0 43.0 42.5 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 115.7 124.1 135.9 155.0 155.0 161.4 164.4 167.0 13 Government account series3 695.6 813.8 959.2 1,043.5 1,043.5 1,040.0 1,097.8 1,114.3 14 Non-interest-bearing 21.2 2.8 2.8 3.1 3.1 3.0 2.9 2.9 By holder 4 15 U.S. Treasury and other federal agencies and trust funds 770077..88 828.3 968.7 1,047.8 1,047.8 1,043.2 1,099.8 16 Federal Reserve Banks 228.4 259.8 281.8 302.5 302.5 305.2 328.2 17 Private investors 2,015.8 2,288.3 2,563.2 2,839.9 2,839.9 2,895.0 2,938.4 18 Commercial banks 164.9 171.5 233.4 294.0 294.0 310.0 322.0 19 Money market funds 14.9 45.4 80.0 79.4 79.4 77.7 75.8 20 Insurance companies 125.1 142.0 168.7 190.3 190.3 194.0 198.0 21 Other companies 93.4 108.9 150.8 192.5 192.5 199.3 206.1 n.a. 22 State and local treasuries 487.5 490.4 520.3 534.8 534.8 541.0 546.0 Individuals 23 Savings bonds 111177..77 126.2 138.1 157.3 157.3 163.6 166.5 74 Other securities 98.7 107.6 125.8 131.9 131.9 134.1 136.4 25 Foreign and international5 392.9 458.4 491.8 549.2 549.2 564.4 567.5 26 Other miscellaneous investors® 520.7 637.7 651.3 710.5 710.5 710.8 720.0 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, 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 1993, week ending IItteemm July Aug. Sept. Sept. 1 Sept. 8 Sept. 15 Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 38,518 39,177 43,379 39,068 41,911 43,125 45,908 44,651 35,833 3399,,334422 4422,,665555 3388,,776644 Coupon securities, by maturity 2 Less than 3.5 years 41,112 50,523 49,496r 44,119 44,623 55,450 53,332 47,456 35,606 35,563 4411,,995577 5577,,884400 3 3.5 to 7.5 years 38,413 39,718 48,289 41,199 44,681 50,829 49,365 51,469 35,824 35,115 39,036 57,604 4 7.5 to 15 years 21,192 26,974r 26,328 27,482 28,220 30,835 22,532 25,102 20,179 24,573 28,250 26,402 5 15 years or more 17,907 27,557 22,996 24,553 25,125 25,866 22,962 19,735 15,049 18,073 21,467 20,347 Federal agency securities Debt, by maturity 6 Less than 3.5 years 6,647 8,361 8,633 8,778 7,256 8,084 7,887 10,687 1100,,119999 99,,880033 1100,,006699 99,,774400 7 3.5 to 7.5 years 605 512 661 540 790 450 584 864 684 860 724 719 8 7.5 years or more 712 650 653 640 756 779 391 689 759 441 623 470 Mortgage-backed 9 Pass-throughs 19,563 18,926 20,594 14,345 22,011 28,261 18,158 16,316 16,412 2288,,662244 2222,,112288 1188,,331188 10 All others 3,266 3,079 3,259 4,070 3,493 4,066 2,121 3,273 3,107 2,648 2,706 2,879 By type of counterparty Pnmary dealers and brokers 11 U.S. Treasury securities 97,390 114,310" 119,952 107,725 111,771 129,147 128,459 117,580 88,243 92,246 110066,,770044 112255,,446655 Federal agency securities 12 Debt 1,073 1,554 1,466 1,497 1,487 1,245 1,361 1,751 1,548 1,588 1,414 11,,444422 13 Mortgage-backed 10,157 9,462 9,745 7,318 9,210 12,866 9,445 8,015 8,865 12,217 11,401 9,779 Customers 14 U.S. Treasury securities 59,751 69,638 70,536r 68,695 72,789 76,958 65,639 70,834 54,247 60,419 66,660 7755,,449911 Federal agency securities 15 Debt 6,891 7,968 8,481 8,461 7,315 8,069 7,501 10,488 10,095 9,517 1100,,000022 99,,448877 16 Mortgage-backed 12,672 12,544 14,108 11,097 16,294 19,461 10,833 11,575 10,654 19,056 13,433 11,418 FUTURES AND FORWARD TRANSACTIONS By type of deliverable security U.S. Treasury securities 17 Bills 2,511 1,906 2,504 2,090 2,637 3,364 2,080 1,980 2,817 2,301 22,,444466 22,,224477 Coupon securities, by maturity 18 Less than 3.5 years 2,055 2,264 2,254 2,582 2,197 2,562 2,997 1,406 1,140 11,,661133 11,,446699 22,,004499 19 3.5 to 7.5 years 1,382 2,062 2,220 3,435 3,075 2,174 2,388 1,359 1,279 1,276 1,384 1,906 20 7.5 to 15 years 2,751 3,398 3,040 3,112 3,198 3,155 3,409 2,626 1,976 2,513 2,963 4,374 21 15 years or more 11,588 14,008 13,179 15,486 12,076 14,267 15,204 11,387 8,669 8,064 10,784 14,608 Federal agency securities Debt, by maturity 22 Less than 3.5 years 86 80 150 104 63 71 212 271 25 4455 2266 6600 23 3.5 to 7.5 years 105 124 90 81 59 133 123 47 65 117 176 77 24 7.5 years or more 23 35 30 82 33 22 44 6 56 7 47 5 Mortgage-backed 25 Pass-throughs 23,296 24,157 26,519 22,966 25,088 36,462 22,545 22,621 25,431 33,701 23,164 2233,,448899 26 Others3 2,026 2,093 1,965 2,281 1,221 1,863 2,647 1,917 1,963 2,044 2,346 2,668 OPTIONS TRANSACTIONS' By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,512 1,205 1,768 1,513 1,940 2,149 1,659 1,484 1,395 1,685 22,,115588 22,,332244 28 3.5 to 7.5 years 801 739 852 744 1,217 486 975 903 467 1,017 542 769 29 7.5 to 15 years 1,019 982 863 536 1,103 998 847 724 337 659 600 776 30 15 years or more 2,503 2,758 3,645 3,033 4,472 3,446 3,804 3,564 1,556 1,519 1,956 1,935 Federal agency, mortgagebacked securities 31 Pass-throughs 533 598 805 842 942 855 685 786 662 1,344 771 779988 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 business 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 business because of insufficient activity. days or less. Stripped securities are reported at market value by maturity of coupon or Data for several types of options transactions—U.S. Treasury securities, bills; corpus. Federal agency securities, debt; and federal agency securities, mortgage-backed, 3. Includes such securities as collateralized mortgage obligations (CMOs), real other than pass-throughs—are no longer available because activity is insufficient. estate mortgage investment conduits (REMICs), interest-only securities (IOs), and principal-only securities (POs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • January 1994 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1993 1993, week ending July Aug. Sept. Sept. 1 Sept. 8 Sept. 15 Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Positions2 NET IMMEDIATE POSITIONS3 By type of security U.S. Treasury securities 1 Bills 5,394 8,508 6,161 7,234 33,,333322 77,,222222 1122,,662288 11,,660088 44,,005522 22,,993344 77,,882255 Coupon securities, by maturity 2 Less than 3.5 years 9,704 7,631 l,901r 4,760 8,450 -1,040 570 192 -4,939 -5,890 -4,445 3 3.5 to 7.5 years -17,643 -21,963 -21,050r -21,034 -21,637 -23,757 -21,007 -18,010 -19,593 -19,856 -24,027 4 7.5 to 15 years -5,042 -1,200 —3,312r -781 -927 -3,511 -3,378 -5,241 -7,181 -7,145 -6,536 5 15 years or more 10,367 6,931 10,167r 8,895 10,688 11,987 10,520 77,,991111 88,,338866 66,,777744 55,,774499 Federal agency securities Debt, by maturity 6 Less than 3.5 years 7,924 9,611 9,784r 8,775 10,149 10,093 8,002 10,882 10,855 10,072 9,762 7 3.5 to 7.5 years 3,023 2,899 3,289 2,990 3,112 3,172 3,262 3,619 3,523 3,533 3,164 8 7.5 years or more 3,568 3,783 4,083r 4,014 4,412 44,,001111 33,,778877 44,,008855 44,,442200 44,,773388 44,,771111 Mortgage-backed 9 Pass-throughs 37,760 44,748 53,317 39,910 45,730 60,078 58,332 52,459 43,411 56,529 55,381 10 All others 25,204 24,588 31,825r 29,378 29,992 26,638 3355,,448822 3344,,552299 3388,,888811 3377,,880088 3366,,226611 Other money market instruments 11 Certificates of deposit 2,673 3,251 2,705 3,0% 2,910 2,518 2,621 2,545 3,903 3,558 2,937 12 Commercial paper 6,669 7,093 7,53<y 8,627 6,646 10,216 7,351 5,800 7,186 6,437 5,908 13 Bankers acceptances 1,114 1,135 1,103 931 1,097 1,016 1,051 1,242 1,307 1,515 1,441 FUTURES AND FORWARD POSITIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -6,396 -7,235 -4,347r -5,920 -4,695 --66,,118877 --66,,770077 -494 22,,008855 22,,333366 33,,556688 Coupon securities, by maturity 15 Less than 3.5 years -1,787 -1,741 -1,829 -1,649 -1,983 -2,641 -1,691 -1,177 -769 -366 -886 16 3.5 to 7.5 years 4,012 3,649 933 778 387 2,311 981 -2 1,462 1,949 3,129 17 7.5 to 15 years 4,208 6,921r 8,185 7,130 7,605 8,988 8,229 7,921 9,232 8,724 9,648 18 15 years or more -6,493 -8,172 -6,532 -6,138 -8,249 -7,281 —6,%2 --33,,997799 --44,,551111 --44,,111122 --33,,332255 Federal agency securities Debt, by maturity 19 Less than 3.5 years 4 -18 107 44 120 187 83 32 209 -65 -120 20 3.5 to 7.5 years -72 11 -7 -52 -56 94 -19 -23 -123 -153 -153 21 7.5 years or more 33 36 0 132 30 16 -91 30 -27 2 114 Mortgage-backed 22 Pass-throughs -20,369 -26,253 -40,809 -22,547 -31,821 -48,895 -45,603 -40,809 -31,831 -41,628 -41,404 23 All others^ 2,782 5,513 7,468 3,759 3,980 7,335 10,297 9,149 4,950 5,392 7,915 24 Certificates of deposit -178,5% -198,937 -214,188 -198,623 -226,976 -219,241 -206,633 -205,128 -221,167 -220,504 -221,134 Financing6 Reverse repurchase agreements 25 Overnight and continuing 244,345 246,671 241,660 235,540 246,529 249,390 235,263 236,949 237,334 244,572 239,145 26 Term 406,245 400,077 402,712 366,433 385,406 397,434 417,557 413,529 417,459 429,074 430,858 Repurchase agreements 27 Overnight and continuing 452,885 468,541 471,885 467,950 475,861 489,909 470,579 454,531 452,427 463,766 466,059 28 Term 370,581 371,613 367,019* 332,424 339,056 360,260 389,234 384,472 367,000 381,464 385,927 Securities borrowed 29 Overnight and continuing 128,685 134,639 134,602 137,165 139,030 140,492 132,625 126,246 132,134 137,014 139,900 30 Term 46,807 45,868 41,872 46,154 42,470 42,281 40,553 41,533 42,157 43,025 44,555 Securities loaned 31 Overnight and continuing 5,355 5,760 6,593 6,891 5,735 6,330 7,869 6,511 5,773 6,592 5,119 32 Term 773 981 1,477 1,061 1,136 1,612 1,799 1,377 1,790 1,722 1,766 Collateralized loans 33 Overnight and continuing 16,304 16,061 16,964 12,566 16,452 16,779 16,173 19,040 17,252 18,076 19,341 MEMO: Matched book7 Reverse repurchase agreements 34 Overnight and continuing 161,088 166,820 162,477r 162,073 160,205 169,168 162,151 159,473 155,254 158,602 162,876 35 351,971 342,286 344,9891 310,758 332,579 340,953 358,656 349,730 365,500 375,552 373,577 Repurchase agreements 36 Overnight and continuing 227,742 224,1% 216,545r 213,048 222,078 223,808 212,838 207,614 218,940 233,250 239,395 37 Term 278,162 274,942 269,078r 241,341 246,361 262,542 288,254 282,135 275,941 289,399 286,175 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 business 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 business 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 1993 AAggeennccyy 11998899 11999900 11999911 11999922 Apr. May June July Aug. 1 Federal and federally sponsored agencies 411,805 434,668 442,772 483,970 502,368 509,632 512,072 522,494 544,642 2 Federal agencies 35,664 42,159 41,035 41,829 42,619 42,738 42,218 44,656 44,816 3 Defense Department 7 7 7 7 7 7 7 7 7 4 Export-Import Bank ,3 10,985 11,376 9,809 7,208 6,749 6,749 6,258 6,258 6,258 5 Federal Housing Administration 328 393 397 374 263 271 283 97 154 6 Government National Mortgage Association certificates of participation 0 0 0 0 0 0 0 0 0 7 Postal Service6 6,445 6,948 8,421 10,660 10,440 10,440 10,182 10,182 10,182 8 Tennessee Valley Authority 17,899 23,435 22,401 23,580 25,160 25,271 25,488 28,112 28,215 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 375,428 392,509 401,737 442,141 459,749 466,894 469,854 477,838 499,826 11 Federal Home Loan Banks 136,108 117,895 107,543 114,733 117,363 120,172 127,289 125,448 129,808 12 Federal Home Loan Mortgage Corporation 26,148 30,941 30,262 29,631 47,903 46,555 35,572 42,291 55,421 13 Federal National Mortgage Association 116,064 123,403 133,937 166,300 165,135 170,768 176,527 180,730 184,924 14 Farm Credit Banks8 54,864 53,590 52,199 51,910 51,210 51,538 51,686 51,698 51,406 15 Student Loan Marketing Association9 28,705 34,194 38,319 39,650 38,209 37,%7 38,884 37,801 38,397 16 Financing Corporation 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation 847 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation 4,522 23,055 29,996 29,996 29,9% 29,9% 29,9% 29,9% 29,9% MEMO 19 Federal Financing Bank debt13 134,873 179,083 185,576 154,994 140,807 137,215 132,953 132,307 128,616 Lending to federal and federally sponsored agencies 20 Export-Import Bank 10,979 11,370 9,803 7,202 6,743 6,743 6,252 6,252 6,252 21 Postal Service6 6,195 6,698 8,201 10,440 10,440 10,440 10,182 10,182 10,182 22 Student Loan Marketing Association 4,880 4,850 4,820 4,790 4,790 4,790 4,790 4,790 4,790 23 Tennessee Valley Authority 16,519 14,055 10,725 6,975 6,675 6,575 6,575 6,575 6,325 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other lending14 25 Farmers Home Administration 53,311 52,324 48,534 42,979 41,629 40,379 39,729 39,129 38,619 26 Rural Electrification Administration 19,265 18,890 18,562 18,172 18,008 17,970 17,895 17,883 17,897 27 Other 23,724 70,896 84,931 64,436 52,522 50,318 47,530 47,496 44,551 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, whereas the Rural Electrification Admin- 9. Before late 1982, the Association obtained financing through the Federal istration 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 Nonfinancial Statistics • January 1994 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1993 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11999900 11999911 11999922 Mar. Apr. May June July Aug. Sept. Oct. 1 All issues, new and refunding1 120,339 154,402 215,191 28,920 20,956 27,178 28,529 21,603 21,258 21,555 19,464 By type of issue 2 General obligation 39,610 55,100 78,611 8,254 8,272 9,452 8,415 7,713 6,065 5,455 7,398 3 Revenue 81,295 99,302 136,580 20,666 12,684 17,726 20,114 13,890 15,193 16,100 12,066 By type of issuer 4 State 15,149 24,939 25,295 2,139 1,463 2,910 3,562 2,944 2,319 2,758 n.a. it Special district or statutory authority2 72,661 80,614 129,686 19,804 9,923 15,441 18,132 10,043 10,632 11,321 n.a. 6 Municipality, county, or township 32,510 48,849 60,210 6,977 9,570 8,827 6,835 8,616 8,307 7,476 n.a. 7 Issues for new capital 103,235 116,953 120,272 9,741 4,941 8,681 11,208 7,737 7,029 8,750" 7,313 By use of proceeds 8 Education 17,042 21,121 22,071 1,482 833 1,5% 2,208 1,723 1,883 1,886 547 9 Transportation 11,650 13,395 17,334 2,111 699 813 772 653 1,062 789 304 10 Utilities and conservation 11,739 21,039 20,058 538 806 955 1,629 922 1,646 1,255 593 11 Social welfare 23,099 25,648 21,7% 1,556 942 1,756 2,073 1,555 681 2,199 1,764 12 Industrial aid 6,117 8,376 5,424 765 134 601 1,042 429 212 329 518 13 Other purposes 34,607 30,275 33,589 3,264 1,971 3,665 3,046 2,455 1,545 1,892 3,726 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 before then. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1993 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, oorr iissssuueerr 11999900 11999911 11999922 Feb. Mar. Apr. May June July Aug. Sept. 1 All issues' 340,049 465,243 559,449 59,427 56,265 40,654 42,961 65,574 48,945r 53,859" 64,278 2 Bonds2 299,884 389,822 471,125 49,367 47,427 34,403 34,263 55,780 39,177r 44,597" 53,900 By type of offering i Public, domestic 188,848 286,930 377,681 47,084 42,223 31,199 30,934 51,183 36,527" 41,000" 49,000 4 Private placement, domestic 86,982 74,930 65,853 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 23,054 27,%2 27,591 2,283 5,203 3,204 3,329 4,597 2,650 3,799" 4,900 By industry group 6 Manufacturing 51,779 86,628 81,998 8,150 8,137 6,515 3,690 8,397 2,448 6,278 4,036 7 Commercial and miscellaneous 40,733 36,666 42,869 2,268 2,695 2,194 3,015 2,505 5,491 2,331 1,916 8 Transportation 12,776 13,598 9,979 248 1,067 123 685 948 605" 723 288 9 Public utility 17,621 23,945 48,055 5,624 7,058 5,767 2,857 5,849 5,662" 3,214" 5,113 10 Communication 6,687 9,431 15,394 2,890 3,270 2,015 1,820 2,473 2,331 2,979 2,237 11 Real estate and financial 170,288 219,750 272,830 30,187 25,201 17,788 22,1% 35,608 22,639" 29,072" 40,310 12 Stocks2 40,175 75,424 88,325 10,060 8,838 6,251 8,698 9,794 9,768 9,262 10,378 By type of offering 13 Public preferred 3,998 17,085 21,339 1,898 1,647 702 3,124 876 2,113 3,376 1,323 14 Common 19,442 48,230 57,118 8,161 7,191 5,549 5,574 8,918 7,655 5,886 9,055 15 Private placement 16,736 10,109 9,867 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 5,649 24,111 22,723 2,616 1,741 1,387 1,413 1,982 1,810 1,961 2,216 17 Commercial and miscellaneous 10,171 19,418 20,231 2,021 2,488 1,564 2,836 2,025 2,505 1,456 2,122 18 Transportation 369 2,439 2,595 64 336 250 111 168 114 405 153 19 Public utility 416 3,474 6,532 350 743 412 753 893 495 582 %2 20 Communication 3,822 475 2,366 0 7 30 279 65 n.a. 115 230 21 Real estate and financial 19,738 25,507 33,879 5,009 3,522 2,579 3,307 4,660 4,844 4,732 4,503 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., Securities Data Company, and the investment companies other than closed-end, intracorporate transactions, equi- Board of Governors of the 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 Assets1 Millions of dollars 1993 IItteemm 11999911 11999922 Feb. Mar. Apr. May June July Aug.r Sept. 1 Sales of own shares2 463,645 647,055 60,676 69,080 66,766 60,504 68,373 72,503 73,032 70,061 2 Redemptions of own shares 342,547 447,140 39,684 47,414 46,518 38,752 46,923 44,922 46,382 49,269 3 Net sales 121,098 199,915 20,992 21,666 20,248 21,759 21,650 27,581 26,650 20,793 4 Assets4 808,582 1,056,310 1,116,784 1,154,445 1,178,663 1,219,863 1,255,377 1,284,842 1,343,920 1,365,343 5 Cash5 60,292 73,999 79,763 81,536 87,140 85,677 84,177 93,345 92,771 96,918 6 Other 748,290 982,311 1,037,021 1,072,910 1,091,523 1,134,186 1,171,200 1,191,497 1,251,149 1,268,424 1. Data on sales and redemptions exclude money market mutual funds but 4. Market value at end of period, less current liabilities. include limited-maturity municipal bond funds. Data on asset positions exclude 5. Includes all U.S. Treasury securities and other short-term debt securities. both money market mutual funds and limited-maturity municipal bond funds. SOURCE. Investment Company Institute. Data based on reports of membership, 2. Includes reinvestment of net income dividends. Excludes reinvestment of which comprises substantially all open-end investment companies registered with capital gains distributions and share issue of conversions from one fund to another the Securities and Exchange Commission. Data reflect underwritings of new in the same group. companies. 3. Excludes sales and redemptions resulting from transfers of shares into or out of money market mutual funds within the same fund family. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data at seasonally adjusted annual rates 1991r 1992r 1993 AAccccoouunntt 11999900 11999911 11999922 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 380.6 369.5 407.2 378.8 409.9 411.7 367.5 439.5 432.1 458.1 470.3 2 Profits before taxes 365.7 362.3 395.4 373.5 404.3 409.5 357.9 409.9 419.8 445.6 446.8 3 Profits tax liability 138.7 129.8 146.3 133.4 147.0 153.0 130.1 155.0 160.9 173.3 172.4 4 Profits after taxes 227.1 232.5 249.1 240.1 257.3 256.5 227.8 254.9 258.9 272.3 274.4 5 Dividends 153.5 137.4 150.5 133.9 138.0 146.1 155.2 162.9 167.5 168.5 169.7 6 Undistributed profits 73.6 95.2 98.6 106.1 119.3 110.4 72.7 92.0 91.4 103.9 104.7 7 Inventory valuation -11.0 4.9 -5.3 1.9 -4.6 -13.7 -7.8 4.9 -12.7 -12.2 -.2 8 Capital consumption adjustment 25.9 2.2 17.1 3.5 10.2 16.0 17.4 24.7 25.1 24.7 23.7 SOURCE. U.S. Department of Commerce, Survey of Current Business. 1.50 NONFARM BUSINESS EXPENDITURES New Plant and Equipment Billions of dollars; quarterly data at seasonally adjusted annual rates 1992 1993 IInndduussttrryy 11999911 11999922 1199993311 Ql Q2 Q3 Q4 Ql Q2 Q3 Q41 1 Total nonfarm business 528.39 546.60 585.20 534.85 541.41 547.40 559.24 564.13 579.79 598.91 597.98 Manufacturing 2 Durable goods industries 77.64 73.32 80.94 73.98 74.07 72.09 73.30 79.11 80.88 82.73 81.06 3 Nondurable goods industries 105.17 100.69 98.95 99.85 97.91 100.77 103.56 95.94 96.21 103.96 99.69 Nonmanufacturing 4 Mining 10.02 8.88 9.29 8.92 9.20 8.98 8.47 8.89 9.10 9.65 9.52 Transportation 5 Railroad 5.95 6.67 6.57 6.63 6.32 6.70 7.04 6.00 6.00 7.17 7.09 6 Air 10.17 8.93 7.25 8.76 9.65 9.69 7.60 7.30 6.54 8.35 6.82 7 Other 6.54 7.04 9.16 6.44 7.19 7.52 6.97 9.17 9.04 8.90 9.53 Public utilities 8 Electric 43.76 48.22 52.11 46.11 48.35 48.17 49.57 49.92 50.51 54.81 53.20 9 Gas and other 22.82 23.99 23.54 22.89 24.29 24.01 24.50 23.59 24.04 23.06 23.46 10 Commercial and other2 246.32 268.84 297.39 261.27 264.46 269.46 278.24 284.21 297.46 300.26 307.62 1. Figures are amounts anticipated by business. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. "Other" consists of construction, wholesale and retail trade, finance and insurance, personal and business services, and communication. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • January 1994 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1991 1992 1993 AAccccoouunntt 11999900 11999911 11999922 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ASSETS 1 Accounts receivable, gross2 492.3 480.6 482.1 480.6 475.6 476.7 473.9 482.1 469.6 469.3 t Consumer 133.3 121.9 117.1 121.9 118.4 116.7 116.7 117.1 111.9 111.3 3 Business 293.6 292.9 296.5 292.9 290.8 293.2 288.5 296.5 289.6 290.7 4 Real estate 65.5 65.8 68.4 65.8 66.4 66.8 68.8 68.4 68.1 67.2 5 LESS: Reserves for unearned income 57.6 55.1 50.8 55.1 53.6 51.2 50.8 50.8 47.4 47.5* 6 Reserves for losses 9.6 12.9 15.8 12.9 13.0 12.3 12.0 15.8 15.5 13.8R 7 Accounts receivable, net 425.1 412.6 415.5 412.6 409.0 413.2 411.1 415.5 406.6 408.0* 8 All other 113.9 149.0 150.6 149.0 145.5 139.4 146.5 150.6 155.0 156.6R 9 Total assets 539.0 561.6 566.1 561.6 554.5 552.6 557.6 566.1 561.6 564.6r LIABILITIES AND CAPITAL 10 Bank loans 31.0 42.3 37.6 42.3 38.0 37.8 38.1 37.6 34.1 29.5 11 Commercial paper 165.3 159.5 156.4 159.5 154.4 147.7 153.2 156.4 149.8 144.5 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 34.5 34.5 34.8 34.9 37.8 41.9 46.4R 15 Not elsewhere classified 178.2 191.3 195.3 191.3 189.8 191.9 191.4 195.3 195.1 195.8R 16 All other liabilities 63.9 69.0 71.2 69.0 72.0 73.4 73.7 71.2 74.2 81.3 17 Capital, surplus, and undivided profits 63.7 64.8 67.8 64.8 66.0 67.1 68.1 67.8 66.6 67.1 18 Total liabilities and capital 539.6 561.2 566.1 561.2 554.6 552.7 559.4 566.1 561.7 564.6r 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, as 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 1993 TTyyppee ooff ccrreeddiitt 11999900 11999911 11999922 Apr. May June July Aug. Sept. Seasonally adjusted 11 TToottaall 522,474 519,910 534,845 529,552 523,111 522,981 523,539 525,744 527,207 22 CCoonnssuummeerr 160,468 154,822 157,707 156,441 153,275 152,979 153,228 153,420 154,707 33 RReeaall eessttaattee22 65,147 65,383 68,011 69,803 66,3% 67,223 67,426 67,216 66,871 44 BBuussiinneessss 2%,858 299,705 309,127 303,308 303,440 302,778 302,885 305,109 305,629 Not seasonally adjusted 5 Total 525,888 523,192 538,158 531,380 524,180 526,818 523,389 521,094 6 Consumer 161,360 155,713 158,631 155,440 152,708 152,995 153,733 154,218 7 Motor vehicles 75,045 63,415 57,605 53,977 53,878 55,592 56,817 55,247 8 Other consumer 58,213 58,522 59,522 58,546 55,433 55,737 56,259 56,616 9 Securitized motor vehicles4 19,837 23,166 29,775 32,527 33,174 31,642 30,787 32,856 10 Securitized other consumer4 8,265 10,610 11,729 10,390 10,223 10,023 9,870 9,498 11 Real estate2 65,509 65,760 68,410 69,356 66,150 67,230 67,649 67,565 12 Business 299,019 301,719 311,118 306,584 305,322 306,593 302,007 299,311 13 Motor vehicles 92,125 90,613 87,456 88,692 89,317 90,263 87,745 84,921 14 Retail5.... 26,454 22,957 19,303 17,228 16,513 16,995 17,561 17,264 15 Wholesale6 33,573 31,216 29,962 32,064 32,242 31,787 27,442 25,136 16 Leasing 32,098 36,440 38,191 39,400 40,562 41,481 42,743 42,520 17 Equipment 137,654 141,399 151,607 145,877 145,237 146,487 146,408 146,404 18 Retail...., 31,968 30,962 32,212 32,170 32,384 32,775 33,209 33,676 19 Wholesale6 11,101 9,671 8,669 8,642 8,556 8,482 8,224 8,059 20 Leasing ^ 94,585 100,766 110,726 105,066 104,297 105,230 104,975 104,669 21 Other business 63,773 60,900 57,464 56,144 54,487 53,987 53,243 53,536 22 Securitized business assets 5,467 8,807 14,590 15,870 16,281 15,856 14,611 14,451 23 Retail 667 576 1,118 1,434 1,375 1,324 1,268 1,220 24 Wholesale 3,281 5,285 8,756 9,745 9,590 9,539 8,318 8,329 25 Leasing 1,519 2,946 4,716 4,691 5,316 4,993 5,025 4,902 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. 4. Outstanding balances of pools upon which securities have been issued; these Digitized for FRbaAlaSncEesR a re 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 1993 IItteemm 11999900 11999911 11999922 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 153.2 155.0 158.1 150.9 153.1 185.6 168.7 158.1 155.3 169.2 2 Amount of loan (thousands of dollars) 112.4 114.0 118.1 115.0 118.8 125.3 127.4 122.2 120.8 128.4 3 Loan-to-price ratio (percent) 74.8 75.0 76.6 78.5 79.5 75.3 77.8 78.4 78.5 78.0 4 Maturity (years) 27.3 26.8 25.6 24.9 26.9 25.4 26.2 26.4 26.5 26.7 5 Fees and charges (percent of loan amount)2, 1.93 1.71 1.60 1.23 1.43 1.32 1.28 1.21 1.13 1.23 Yield (percent per year) 6 Contract rate 9.68 9.02 7.98 7.26 7.14 7.02 6.99 6.86 6.76 6.61 7 Effective rate1,3 10.01 9.30 8.25 7.46 7.37 7.23 7.20 7.05 6.95 6.80 8 Contract rate (HUD series)4 10.08 9.20 8.43 7.51 7.59 7.33 7.31 6.89 6.94 7.05 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 10.17 9.25 8.46 7.56 7.59 7.52 7.51 7.02 7.03 7.08 10 GNMA securities6 9.51 8.59 7.71r 6.78r 6.82r 6.74r 6.53r 6.42r 6.15r 6.11 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 113,329 122,837 142,833 163,719 166,849 171,232 174,674 177,992 180,057 182,524 12 FHA/VA insured 21,028 21,702 22,168 22,682 22,691 22,656 22,761 22,834 22,810 22,978 13 Conventional 92,302 101,135 120,664 141,037 144,158 148,576 151,913 155,158 157,247 159,546 Mortgage transactions (during period) 14 Purchases 23,959 37,202 75,905 6,761 7,526 9,131 7,854 8,176 8,866 8,780 Mortgage commitments (during period) 15 Issued7 23,689 40,010 74,970 7,764 7,791 8,697 7,760 8,581 9,814 7,515 16 To sell8 5,270 7,608 10,493 112 30 323 458 2,585 0 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)* 17 Total 20,419 24,131 29,959 38,361 39,960 42,477 43,119 44,396 46,858 50,108 18 FHA/VA insured 547 484 408 330 325 319 314 324 323 n.a. 19 Conventional 19,871 23,283 29,552 38,031 39,635 42,158 42,805 44,072 46,536 n.a. Mortgage transactions (during period) 20 Purchases 75,517 99,965 191,125 15,885 18,842 21,529 19,700 19,636 18,372 18,658 21 Sales 73,817 92,478 179,208 13,807 17,532 18,968 18,631 18,008 16,230 15,955 Mortgage commitments (during period)9 22 Contracted 102,401 114,031 261,637 20,731 18,908 28,831 21,722 17,085 16,495 24,614 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on fully modified pass-through securities major institutional lender groups for purchase of newly built homes; compiled by backed by mortgages and guaranteed by the Government National Mortgage the Federal Housing Finance Board in cooperation with the Federal Deposit Association (GNMA), assuming prepayment in twelve years on pools of thirty- Insurance Corporation. year mortgages insured by the Federal Housing Administration or guaranteed by 2. Includes all fees, commissions, discounts, and "points" paid (by the the Department of Veterans Affairs. borrower or the seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby com- 3. Average effective interest rate on loans closed for purchase of newly built mitments converted. homes, assuming prepayment at the end of ten years. 8. Includes participation loans as well as whole loans. 4. Average contract rate on new commitments for conventional first mort- 9. Includes conventional and government-underwritten loans. The Federal gages; from U.S. Department of Housing and Urban Development (HUD). Based Home Loan Mortgage Corporation's mortgage commitments and mortgage transon transactions on the first day of the subsequent month. actions include activity under mortgage securities swap programs, whereas the 5. Average gross yield on thirty-year, minimum-downpayment first mort- corresponding data for FNMA exclude swap activity. gages insured by the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • January 1994 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1992 1993 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11998899 11999900 11999911 Q2 Q3 Q4 Q1 Q2P 1 AU holders 3,549,290 3,761,262 3,922,980 3,981,827 4,019,409 4,041,590 4,056,749 4,085,483 By type of property 7 One- to four-family residences 2,408,342 2,615,344 2,778,716 2,856,601 2,911,354 2,953,464 2,976,287 3,014,387 3 Multifamily residences 306,472 309,326 306,392 304,792 301,957 294,959 293,382 291,029 4 Commercial 754,000 758,189 758,739 740,702 726,273 713,408 707,041 699,994 5 Farm 80,476 78,403 79,133 79,733 79,824 79,759 80,040 80,073 By type of holder 6 Major financial institutions 1,931,537 1,914,315 1,846,726 1,803,836 1,793,492 1,769,267 1,751,941 1,758,285 7 Commercial banks 767,069 844,826 876,100 884,962 891,445 894,593 890,672 910,867 8 One- to four-family 389,632 455,931 483,623 493,199 502,075 507,830 506,976 526,394 Multifamily 38,876 37,015 36,935 37,724 38,757 38,027 37,5% 37,840 10 Commercial 321,906 334,648 337,095 334,488 330,705 328,854 326,128 326,033 11 Farm 16,656 17,231 18,447 19,552 19,908 19,882 19,972 20,600 1? Savings institutions3 910,254 801,628 705,367 659,624 648,178 627,972 617,141 608,528 13 One- to four-family 669,220 600,154 538,358 508,545 501,604 489,622 480,398 473,949 14 Multifamily 106,014 91,806 79,881 74,788 73,723 69,791 70,656 69,408 IS Commercial 134,370 109,168 86,741 75,947 72,517 68,235 65,755 64,837 16 Farm 650 500 388 345 334 324 332 334 17 Life insurance companies 254,214 267,861 265,258 259,250 253,869 246,702 244,128 238,890 18 One- to four-family 12,231 13,005 11,547 12,041 11,779 11,441 11,316 11,071 19 Multifamily 26,907 28,979 29,562 29,226 28,591 27,770 27,466 26,871 ?n Commercial 205,472 215,121 214,105 208,665 204,132 198,269 1%,100 191,852 21 Farm 9,604 10,756 10,044 9,318 9,366 9,222 9,246 9,095 22 Federal and related agencies 197,778 239,003 266,146 278,091 277,485 285,965 287,182 299,214 23 Government National Mortgage Association 23 20 19 23 27 30 45 45 74 One- to four-family 23 20 19 23 27 30 37 38 ?s Multifamily 0 0 0 0 0 0 8 7 76 Farmers Home Administration4 41,176 41,439 41,713 41,628 41,671 41,695 41,630 41,669 77 One- to four-family 18,422 18,527 18,496 17,718 17,292 16,912 18,149 18,313 78 Multifamily 9,054 9,640 10,141 10,356 10,468 10,575 10,235 10,197 79 Commercial 4,443 4,690 4,905 4,998 5,072 5,158 4,934 4,915 30 Farm 9,257 8,582 8,171 8,557 8,839 9,050 8,313 8,245 31 Federal Housing and Veterans' Administrations 6,087 8,801 10,733 11,480 11,768 12,581 13,027 12,945 37. One- to four-family 2,875 3,593 4,036 4,403 4,531 5,153 5,631 5,635 33 Multifamily 3,212 5,208 6,697 7,077 7,236 7,428 7,3% 7,311 34 Resolution Trust Corporation 0 32,600 45,822 44,624 37,099 32,045 27,331 21,973 35 One- to four-family 0 15,800 14,535 15,032 12,614 12,960 11,375 8,955 36 Multifamily 0 8,064 15,018 13,316 11,130 9,621 8,070 6,743 37 Commercial 0 8,736 16,269 16,276 13,356 9,464 7,886 6,275 38 Farm 0 0 0 0 0 0 0 0 39 Federal National Mortgage Association 99,001 104,870 112,283 122,939 126,476 137,584 141,192 151,513 40 One- to four-family 90,575 94,323 100,387 110,223 113,407 124,016 127,252 137,340 41 Multifamily 8,426 10,547 11,896 12,716 13,069 13,568 13,940 14,173 4? Federal Land Banks 29,640 29,416 28,767 28,775 28,815 28,365 28,536 28,592 43 One- to four-family 1,210 1,838 1,693 1,693 1,695 1,669 1,679 1,682 44 Farm 28,430 27,577 27,074 27,082 27,119 26,6% 26,857 26,909 45 Federal Home Loan Mortgage Corporation 21,851 21,857 26,809 28,621 31,629 33,665 35,421 42,477 46 One- to four-family 18,248 19,185 24,125 26,001 29,039 31,032 32,831 39,905 47 Multifamily 3,603 2,672 2,684 2,620 2,591 2,633 2,589 2,572 48 Mortgage pools or trusts5 917,848 1,079,103 1,250,666 1,341,338 1,385,460 1,425,546 1,461,612 1,472,844 49 Government National Mortgage Association 368,367 403,613 425,295 422,922 422,255 419,516 421,514 413,166 50 One- to four-family 358,142 391,505 415,767 413,828 413,063 410,675 412,798 404,425 51 Multifamily 10,225 12,108 9,528 9,094 9,192 8,841 8,716 8,741 57, Federal Home Loan Mortgage Corporation 272,870 316,359 359,163 382,797 391,762 407,514 420,932 422,882 53 One- to four-family 266,060 308,369 351,906 376,177 385,400 401,525 415,279 417,646 54 Multifamily 6,810 7,990 7,257 6,620 6,362 5,989 5,654 5,236 55 Federal National Mortgage Association 228,232 299,833 371,984 413,226 429,935 444,979 457,316 465,220 56 One- to four-family 219,577 291,194 362,667 403,940 420,835 435,979 448,483 456,645 57 Multifamily 8,655 8,639 9,317 9,286 9,100 9,000 8,833 8,575 58 Farmers Home Administration4 80 66 47 43 41 38 44 45 59 One- to four-family 21 17 11 9 9 8 10 10 60 Multifamily 0 0 0 0 0 0 0 0 61 Commercial 26 24 19 18 18 17 18 19 67 Farm 33 26 17 15 14 13 16 16 63 Private mortgage conduits 48,299 59,232 94,177 122,350 141,468 153,499 161,805 171,532 64 One- to four-family 43,325 53,335 84,000 105,700 123,000 132,000 137,000 145,000 65 Multifamily 462 731 3,698 5,796 5,796 6,305 6,662 7,410 66 Commercial 4,512 5,166 6,479 10,855 12,673 15,194 18,143 19,121 67 Farm 0 0 0 0 0 0 0 0 68 Individuals and others6 502,127 528,841 559,442 558,562 562,971 560,812 556,015 555,140 69 One- to four-family 318,782 348,547 367,546 368,068 374,984 372,613 367,072 367,378 70 Multifamily 84,228 85,926 83,778 86,174 85,942 85,410 85,561 85,947 71 Commercial 83,272 80,636 93,126 89,456 87,802 88,217 88,077 86,941 72 Farm 15,846 13,732 14,992 14,864 14,243 14,572 15,304 14,874 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. SOURCES. Based on data from various institutional and government sources. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were Separation of nonfarm mortgage debt by type of property, if not reported directly, reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 and interpolations and extrapolations, when required, are estimated mainly by the because of accounting changes by the Farmers Home Administration. Federal Reserve. Line 64, from Inside Mortgage Securities. 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 1993 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999900 11999911 11999922 Apr. May June July Aug. Sept. Seasonally adjusted 11 TToottaall 738,765 733,510 741,093 752,193 750,293 752,428 757,465 762,503' 769,182 22 AAuuttoommoobbiillee 284,739 260,898 259,627 262,463 264,007 265,388 267,468 268,784r 271,068 33 RReevvoollvviinngg 222,552 243,564 254,299 261,450 262,690 263,338 266,938 270,753" 273,789 44 OOtthheerr 231,474 229,048 227,167 228,280 223,596 223,701 223,058 222,967r 224,324 Not seasonally adjusted 5 Total 752,883 749,052 756,944 746,447 744,778 748,830 753,645 763,268r 770,996 By major holder 6 Commercial banks 347,087 340,713 331,869 332,266 333,415 335,592 339,948 334455,,444499"" 334499,,883300 7 Finance companies 133,258 121,937 117,127 112,523 109,311 111,330 113,076 111,864 112,645 8 Credit unions 93,057 92,681 97,641 101,534 103,019 104,781 106,027 108,095 110,125 9 Retailers 43,464 39,832 42,079 38,218 38,681 38,813 39,043 39,688 39,842 10 Savings institutions 52,164 45,965 43,461 40,275 39,210 37,250 36,485 35,919 34,985 11 Gasoline companies 4,822 4,362 4,365 4,280 4,486 4,567 4,668 4,728 4,706 12 Pools of securitized assets2 79,030 103,562 120,402 117,351 116,656 116,497 114,398 117,525 118,863 By major type of credit3 13 Automobile 284,903 261,219 259,964 260,857 262,860 265,345 267,646 227700,,449955"" 227733,,771133 14 Commercial banks 124,913 112,666 109,743 111,121 112,700 114,901 116,729 118,535" 120,757 15 Finance companies 75,045 63,415 57,605 53,977 53,878 55,592 56,817 55,247 55,057 16 Pools of securitized assets 24,620 28,915 33,878 36,262 36,431 34,701 33,673 35,569 36,149 17 Revolving 234,801 256,876 267,949 257,783 259,566 260,993 264,100 269,663" 272,665 18 Commercial banks 133,385 138,005 132,582 129,550 130,871 129,921 132,984 135,466" 136,628 19 Retailers 38,448 34,712 36,629 32,838 33,254 33,328 33,505 34,099 34,214 20 Gasoline companies 4,822 4,362 4,365 4,280 4,486 4,567 4,668 4,728 4,706 21 Pools of securitized assets 45,637 63,595 74,243 69,919 69,054 70,842 69,935 71,562 72,646 22 Other 233,178 230,957 229,031 227,807 222,352 222,491 221,899 223,109" 224,618 23 Commercial banks 88,789 90,042 89,544 91,595 89,844 90,770 90,235 91,448" 92,445 24 Finance companies 58,213 58,522 59,522 58,546 55,433 55,737 56,259 56,616 57,588 25 Retailers 5,016 5,120 5,450 5,380 5,427 5,485 5,538 5,589 5,628 26 Pools of securitized assets 8,773 11,052 12,281 11,170 11,171 10,954 10,790 10,394 10,068 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 1993 IItteemm 11999900 11999911 11999922 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks2 1 48-month new car 11.78 11.14 9.29 n.a. n.a. 8.17 n.a. n.a. 77..9988 n.a. 2 24-month personal 15.46 15.18 14.04 n.a. n.a. 13.63 n.a. n.a. 13.45 n.a. 3 120-month mobile home 14.02 13.70 12.67 n.a. n.a. 12.00 n.a. n.a. 11.53 n.a. 4 Credit card 18.17 18.23 17.78 n.a. n.a. 17.15 n.a. n.a. 16.59 n.a. Auto finance companies 5 New car 12.54 12.41 9.93 9.95 99..6611 99..5511 99..4455 99..3377 99..2211 99..2211 6 Used car 15.99 15.60 13.80 13.21 12.74 12.61 12.55 12.46 12.48 12.52 OTHER TERMS3 Maturity (months) 7 New car 54.6 55.1 54.0 54.6 5544..55 54.4 54.6 54.7 5544..99 5544..77 8 Used car 46.0 47.2 47.9 49.0 48.9 48.9 49.0 49.0 49.0 48.8 Loan-to-value ratio 9 New car 87 88 89 90 90 91 91 91 91 91 10 Used car 95 96 97 98 98 98 98 98 99 98 Amount financed (dollars) 1111 NNeeww ccaarr 12,071 12,494 13,584 14,013 1144,,002211 14,146 14,296 1144,,443300 1144,,332244 1144,,334488 8,289 8,884 9,119 9,641 9,731 9,829 9,912 9,996 10,104" 9,808 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • January 1994 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1991 1992 1993 11998888 11998899 11999900 11999911 11999922 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 752.6 723.0 631.0 475.5 581.5 411.4 603.0 584.6 611.3 526.9 400.2 667.2 By sector and instrument 2 U.S. government 155.1 146.4 246.9 278.2 304.0 272.5 323.8 352.9 299.1 240.1 229.6 348.2 3 Treasury securities 137.7 144.7 238.7 292.0 303.8 268.7 335.0 352.5 290.1 237.4 226.4 344.1 4 Agency issues and mortgages 17.4 1.6 8.2 -13.8 .2 3.8 -11.2 .4 9.0 2.7 3.2 4.1 5 Private 597.5 576.6 384.1 197.3 277.5 138.9 279.2 231.8 312.1 286.8 170.7 319.0 By instrument 6 Tax-exempt obligations 53.7 65.3 57.3 69.6 65.7 77.6 68.0 76.6 75.8 42.4 62.1 60.7 7 Corporate bonds 103.1 73.8 47.1 78.8 67.3 60.2 76.3 77.8 61.3 53.7 75.0 65.0 Mortgages 279.6 269.1 188.7 165.1 120.0 145.2 183.2 71.0 135.0 90.9 95.8 118.7 9 Home mortgages 219.6 212.5 177.2 166.0 176.0 176.5 216.5 111.6 203.3 172.7 126.2 155.4 10 Multifamily residential 16.1 12.0 3.4 -2.5 -11.1 .2 11.6 -16.3 -11.1 -28.5 -5.6 -10.6 11 Commercial 48.5 47.3 8.9 .9 -45.5 -28.6 -46.9 -24.6 -57.6 -53.0 -26.0 -26.2 12 Farm -4.6 -2.7 -.8 .7 .6 -2.9 2.0 .4 .4 -.3 1.1 .1 13 Consumer credit 50.1 49.5 13.4 -13.1 9.3 -10.7 -9.8 -14.7 13.5 48.2 20.0 30.7 14 Bank loans n.e.c 44.7 36.4 4.2 -46.8 -4.7 -53.7 -43.6 27.3 -24.3 22.0 -36.1 35.9 15 Commercial paper 11.9 21.4 9.7 -18.4 8.6 -5.0 2.5 -2.6 9.3 25.4 -24.2 34.8 16 Other loans 54.3 61.0 63.6 -37.8 11.2 -74.9 2.6 -3.5 41.5 4.2 -21.9 -26.9 By borrowing sector 17 Household 300.1 276.7 207.7 168.4 215.9 193.8 202.9 176.1 217.6 267.0 139.7 216.8 18 Nonfinancial business 248.4 236.3 121.9 -33.4 2.2 -129.0 14.2 -11.2 21.1 -15.3 -39.9 39.5 19 Farm -10.0 .5 1.8 2.4 .6 -4.6 2.1 3.2 -.5 -2.5 -1.5 3.3 20 Nonfarm noncorporate 57.2 49.4 19.4 -24.5 -39.5 -57.9 -21.7 -47.7 -37.5 -50.9 -28.8 -36.6 21 Corporate 201.3 186.5 100.7 -11.3 41.0 -66.5 33.7 33.3 59.1 38.0 -9.6 72.8 22 State and local government 48.9 63.5 54.5 62.3 59.4 74.0 62.1 66.9 73.5 35.1 70.9 62.7 23 Foreign net borrowing in United States 6.4 10.2 23.9 13.9 24.2 34.3 1.9 57.7 37.8 -.6 50.3 26.9 24 Bonds 6.9 4.9 21.4 14.1 17.3 18.5 4.9 21.9 20.3 22.2 75.6 30.4 25 Bank loans n.e.c -1.8 -.1 -2.9 3.1 2.3 6.5 1.5 14.1 3.9 -10.3 1.6 6.3 26 Open market paper 8.7 13.1 12.3 6.4 5.2 14.9 -8.0 27.8 13.1 -12.1 -21.7 -.6 27 U.S. government loans -7.5 -7.6 -7.0 -9.8 -.6 -5.6 3.6 -6.1 .5 -.4 -5.3 -9.2 28 Total domestic plus foreign 759.0 733.1 654.9 489.4 605.7 445.6 604.9 642.3 649.1 526.3 450.5 694.1 Financial sectors 29 Total net borrowing by financial sectors 239.9 213.7 193.5 150.4 209.8 190.5 167.6 204.6 294.8 172.2 148.7 121.2 By instrument 30 U.S. government-related 119.8 149.5 167.4 145.7 155.8 150.4 126.8 195.2 169.3 131.8 165.8 62.6 31 Government-sponsored enterprises securities 44.9 25.2 17.1 9.2 40.3 32.6 11.5 48.3 67.7 33.6 32.2 68.7 32 Mortgage pool securities 74.9 124.3 150.3 136.6 115.6 117.9 115.3 146.9 101.6 98.4 133.6 -6.1 33 Loans from U.S. government .0 .0 -.1 .0 .0 -.1 .0 .0 .0 -.1 .0 .0 34 Private 120.1 64.2 26.1 4.6 54.0 40.1 40.8 9.4 125.5 40.4 -17.1 58.6 35 Corporate bonds 49.0 37.3 40.8 56.8 58.7 73.7 28.6 59.1 73.0 74.2 60.1 53.6 36 Mortgages .3 .5 .4 .8 .0 1.2 -.4 -1.5 .0 2.0 .9 .2 37 Bank loans n.e.c -3.8 6.0 1.1 17.1 -4.8 3.8 22.0 -39.1 16.9 -19.2 -21.2 -10.6 38 Open market paper 54.8 31.3 8.6 -32.0 -.7 -9.9 1.1 -14.8 17.5 -6.5 -75.5 -18.1 39 Loans from Federal Home Loan Banks 19.7 -11.0 -24.7 -38.0 .8 -28.6 -10.4 5.8 18.1 -10.1 18.6 33.5 By borrowing sector 40 Government sponsored enterprises 44.9 25.2 17.0 9.1 40.2 32.5 11.5 48.3 67.7 33.5 32.2 68.7 41 Federally related mortgage pools 74.9 124.3 150.3 136.6 115.6 117.9 115.3 146.9 101.6 98.4 133.6 -6.1 42 Private 120.1 64.2 26.1 4.6 54.0 40.1 40.8 9.4 125.5 40.4 -17.1 58.6 43 Commercial banks -3.0 -1.4 -.7 -11.7 8.8 -9.5 3.2 5.5 12.1 14.5 5.4 10.4 44 Bank affiliates 5.2 6.2 -27.7 -2.5 2.3 7.0 10.9 -9.2 6.6 .8 21.1 10.8 45 Funding corporations 39.1 13.8 12.5 -13.6 2.1 -14.0 16.1 28.6 -5.7 -30.5 -54.2 -5.7 46 Savings institutions 21.7 -15.1 -30.2 -44.5 -6.7 -34.0 -18.3 -5.4 11.2 -14.4 7.9 18.3 47 Credit unions .0 .0 .0 .0 .0 .0 .0 .0 .0 .1 .0 .3 48 Life insurance companies .0 .0 .0 .0 .0 .0 .0 .0 .2 -.2 .1 .6 49 Finance companies 23.9 27.4 24.0 18.6 -3.6 39.0 -35.6 -20.1 21.2 19.9 -33.1 -41.4 50 Mortgage companies -6.2 3.0 -4.0 5.7 .1 1.9 27.5 -35.3 14.4 -6.4 -10.4 10.3 51 Real estate investment trusts (REITs) 1.8 1.3 1.0 1.6 .1 3.3 1.7 .3 .9 -2.7 -1.4 .7 52 Securitized credit obligation (SCO) issuers 37.6 28.9 51.1 51.0 51.0 46.5 35.3 45.0 64.4 59.2 47.5 54.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1991 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 11999922 Q4 Q1 Q2 Q3 Q4 Ql Q2 All sectors 5533 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 998.8 946.8 848.4 639.8 815.5 636.2 772.5 847.0 943.9 698.5 599.2 815.2 5544 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 274.9 295.8 414.4 424.0 459.8 423.0 450.6 548.1 468.5 372.0 395.3 410.8 5555 TTaaxx--eexxeemmpptt sseeccuurriittiieess 53.7 65.3 57.3 69.6 65.7 77.6 68.0 76.6 75.8 42.4 62.1 60.7 5566 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 159.0 116.0 109.2 149.6 143.3 152.4 109.8 158.8 154.6 150.1 210.8 149.0 5577 MMoorrttggaaggeess 280.0 269.6 189.1 165.8 120.1 146.5 182.8 69.5 135.0 93.0 96.7 118.9 5588 CCoonnssuummeerr ccrreeddiitt 50.1 49.5 13.4 -13.1 9.3 -10.7 -9.8 -14.7 13.5 48.2 20.0 30.7 5599 BBaannkk llooaannss nn..ee..cc 39.2 42.3 2.4 -26.6 -7.2 -43.4 -20.2 2.3 -3.4 -7.5 -55.7 31.6 6600 OOppeenn mmaarrkkeett ppaappeerr 75.4 65.9 30.7 -44.0 13.1 .0 -4.5 10.3 39.9 6.8 -121.4 16.1 6611 OOtthheerr llooaannss 66.6 42.4 31.8 -85.6 11.4 -109.3 -4.2 -3.8 60.0 -6.5 -8.7 -2.6 External corporate equity funds raised in United States 62 Total net share issues -98.6 -59.6 22.2 210.6 293.5 290.6 271.6 306.1 283.3 313.1 332.3 469.8 63 Mutual funds 6.1 38.5 67.9 150.5 215.4 208.9 174.4 240.7 223.3 223.0 263.8 357.5 64 All other -104.7 -98.1 -45.7 60.1 78.2 81.7 97.2 65.3 60.0 90.1 68.5 112.3 65 Nonfinancial corporations -129.5 -124.2 -63.0 18.3 26.8 48.0 46.0 36.0 11.0 14.0 27.0 32.0 66 Financial corporations 23.9 8.8 9.9 11.2 20.8 10.0 22.1 18.2 14.2 28.6 9.5 30.0 67 Foreign shares purchased in United States .9 17.2 7.4 30.7 30.6 23.7 29.1 11.2 34.8 47.5 31.9 50.3 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 • January 1994 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1991 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 11999922 Q4 Q1 Q2 Q3 Q4 Q1 Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 998.8 946.8 848.4 639.8 815.5 636.2 772.5 847.0 943.9 698.5 599.2 815.2 2 Private domestic nonfinancial sectors 196.1 122.6 162.8 -16.1 69.1 -70.7 136.6 93.4 -43.4 89.9 -174.4 -83.5 3 Households 170.3 78.6 140.1 -49.7 40.2 -123.3 119.3 52.1 -80.7 70.2 -144.7 -93.7 4 Nonfarm noncorporate business 3.1 -.7 -1.7 -4.2 -2.4 -2.6 -3.9 -2.7 -2.0 -1.0 -3.7 -3.0 5 Nonfinancial corporate business 5.7 13.6 -5.3 4.3 36.3 11.0 25.1 36.8 46.5 36.9 -18.5 5.1 6 State and local governments 17.1 31.1 29.6 33.5 -5.0 44.2 -3.9 7.2 -7.1 -16.3 -7.5 8.1 7 U.S. government -10.6 -3.1 33.7 10.5 -11.9 -20.0 15.2 -23.0 -26.7 -13.1 -24.1 -27.8 8 Foreign 108.6 84.4 82.1 25.6 100.0 41.3 94.4 138.9 79.3 87.6 74.6 92.4 9 Financial sectors 704.8 742.9 569.9 619.8 658.2 685.6 526.3 637.7 934.7 534.2 723.1 834.2 10 Government sponsored enterprises 33.2 -4.1 16.4 14.2 68.7 24.9 92.7 38.6 73.0 70.5 15.8 144.1 11 Federally related mortgage pools 74.9 124.3 150.3 136.6 115.6 117.9 115.3 146.9 101.6 98.4 133.6 -6.1 12 Monetary authority 10.5 -7.3 8.1 31.1 27.9 16.9 28.5 19.0 15.7 48.3 44.5 32.6 13 Commercial banking 156.5 177.2 125.1 84.3 94.8 120.4 85.1 72.7 148.0 73.3 86.4 147.9 14 U.S. commercial banks 126.4 146.1 94.9 39.2 69.8 56.9 76.3 13.3 123.5 66.0 100.4 142.0 15 Foreign banking offices 29.4 26.7 28.4 48.5 16.5 64.9 -.5 56.7 5.2 4.8 -12.5 3.8 16 Bank holding companies -.1 2.8 -2.8 -1.5 5.6 .0 7.1 -.4 16.4 -.6 -4.3 -.4 17 Banks in U.S. affiliated areas .8 1.6 4.5 -1.9 2.9 -1.5 2.2 3.2 3.0 3.0 2.9 2.6 18 Private nonbank finance 429.7 452.9 270.0 353.7 351.3 405.5 204.8 360.5 596.3 243.7 442.8 515.5 19 Thrift institutions 114.8 -86.6 -153.3 -123.0 -59.9 -56.7 -104.6 -76.3 -43.6 -15.2 -27.2 15.0 20 Insurance 199.0 257.4 181.6 234.3 166.1 199.3 96.6 188.3 221.7 157.8 295.7 166.8 21 Life insurance companies 104.0 101.8 94.4 83.2 82.4 24.6 73.7 66.9 85.1 103.7 122.1 119.5 22 Other insurance companies 29.2 29.7 26.5 32.3 12.7 28.9 28.8 16.4 -2.8 8.3 8.9 10.6 23 Private pension funds 29.2 81.1 17.2 85.3 38.9 135.0 -33.8 77.0 103.9 8.4 122.3 -9.1 24 State and local government retirement funds 36.6 44.7 43.5 33.5 32.2 10.8 27.8 28.0 35.6 37.4 42.4 45.9 25 Finance n.e.c 115.9 282.2 241.7 242.3 245.2 263.0 212.8 248.5 418.2 101.1 174.3 333.8 26 Finance companies 38.1 32.0 28.4 -12.1 1.7 -28.0 -5.3 -16.0 4.0 24.0 -34.0 -22.8 27 Mortgage companies -7.4 6.1 -8.0 11.4 .1 3.9 23.0 -38.5 28.9 -12.8 -20.9 21.0 28 Mutual funds 11.9 23.8 41.4 90.3 132.3 137.9 95.1 171.1 138.6 124.5 156.8 191.2 29 Closed-end funds 19.8 6.3 .0 15.2 12.3 13.5 17.9 9.4 8.7 13.1 8.9 13.0 30 Money market funds 10.7 67.1 80.9 30.1 1.3 44.6 19.1 10.0 4.7 -28.4 -65.0 51.8 31 Real estate investment trusts (REITs) .9 .5 -.7 -1.0 .6 -1.9 .3 2.6 -.3 -.1 2.9 .9 32 Brokers and dealers -8.2 96.3 34.9 49.0 40.2 50.5 -2.4 73.0 180.3 -90.2 79.5 14.7 33 Asset-backed securities (ABSs) 35.9 27.7 49.9 49.0 48.6 44.2 33.0 45.2 62.6 53.6 47.0 49.5 34 Bank personal trusts 14.3 22.4 14.8 10.4 8.0 -1.8 32.2 -8.4 -9.3 17.3 -.9 14.4 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Net flows through credit markets 998.8 946.8 848.4 639.8 815.5 636.2 772.5 847.0 943.9 698.5 599.2 815.2 Other financial sources 36 Official foreign exchange 4.0 24.8 2.0 -5.9 -1.6 -5.0 3.5 -6.5 -8.5 5.1 3.4 -3.5 37 Treasury currency and special drawing rights .5 4.1 2.5 .0 -1.8 .5 .1 .3 .2 -7.7 .3 .4 38 Life insurance reserves 25.3 28.8 25.7 25.7 28.4 19.2 33.8 22.7 27.3 29.8 51.4 41.0 39 Pension fund reserves 140.1 309.7 158.1 358.8 228.4 419.6 118.0 191.6 301.3 302.9 371.7 196.9 40 Interbank claims 2.9 -16.5 34.2 -3.7 51.8 10.3 32.1 39.4 82.9 52.8 12.7 47.2 41 Deposits at financial institutions 278.6 284.8 98.1 48.2 9.3 48.5 -.7 4.6 175.3 -142.2 -4.6 272.7 42 Checkable deposits and currency 43.2 6.1 44.2 75.8 122.7 102.8 86.4 108.2 201.2 95.1 30.1 233.7 43 Small time and savings deposits 121.6 100.4 59.0 16.7 -60.8 8.7 -40.1 -81.8 -83.6 -37.7 -157.8 -27.6 44 Large time deposits 53.1 13.9 -65.7 -60.8 -80.0 -108.8 -72.9 -109.9 -52.9 -84.2 -.6 -19.8 45 Money market fund shares 21.9 90.1 70.3 41.2 3.9 30.5 44.4 27.5 -22.0 -34.1 -37.7 66.8 46 Security repurchase agreements 23.7 77.8 -24.2 -16.5 33.6 23.8 8.1 103.7 89.6 -67.1 180.3 17.2 47 Foreign deposits 15.2 -3.6 14.6 -8.2 -10.2 -8.4 -26.6 -43.2 43.0 -14.2 -18.8 2.4 48 Mutual fund shares 6.1 38.5 67.9 150.5 215.4 208.9 174.4 240.7 223.3 223.0 263.8 357.5 49 Corporate equities -104.7 -98.1 -45.7 60.1 78.2 81.7 97.2 65.3 60.0 90.1 68.5 112.3 50 Security credit 3.0 15.6 3.5 51.4 4.2 118.0 -66.7 -4.9 82.8 5.5 39.7 37.4 51 Trade debt 89.6 59.4 32.1 -2.2 57.9 -16.3 79.8 56.5 57.8 37.5 28.6 42.5 52 Taxes payable 5.3 2.0 -4.5 -8.5 7.7 -3.3 8.5 6.1 6.5 9.9 9.7 6.6 53 Noncorporate proprietors' equity -24.0 -31.1 -35.5 -12.5 -13.3 12.9 -21.9 7.1 -39.6 1.3 -15.9 -7.3 54 Investment in bank personal trusts 7.2 23.1 21.5 29.8 -7.5 10.8 40.2 20.2 -55.4 -35.2 -10.1 35.8 55 Miscellaneous 199.2 292.1 98.2 169.9 203.9 256.4 103.2 284.8 214.4 213.3 255.9 332.1 56 Total financial sources 1,632.0 1,883.8 1,306.5 1,501.3 1,676.4 1,798.4 1,374.0 1,774.9 2,072.2 1,484.7 1,674.2 2,286.7 Floats not included in assets (-) 57 U.S. government checkable deposits 1.6 8.4 3.3 -13.1 .7 -88.2 11.3 -9.5 4.4 -3.6 .1 6.1 58 Other checkable deposits .8 -3.2 2.5 2.0 1.6 -5.5 13.8 2.0 -11.7 2.3 -21.8 -11.4 59 Trade credit -6.2 -1.9 2.5 8.1 21.7 -14.1 25.0 11.3 44.6 5.7 -11.8 -2.1 Liabilities not identified as assets (-) 60 Treasury currency -.1 -.2 .2 -.6 -.2 -.1 -.4 -.1 -.3 -.1 -.1 -.2 61 Interbank claims -3.0 -4.4 1.6 26.2 -4.0 16.6 8.2 -18.2 -5.3 -.6 9.3 -2.3 62 Security repurchase agreements -29.6 32.4 -31.5 5.2 31.1 66.7 -26.7 84.1 45.5 21.4 136.6 2.2 63 Taxes payable 6.3 2.3 .5 .4 6.7 .5 -7.6 7.0 23.8 3.7 -11.1 24.4 64 Miscellaneous 47.3 -77.8 -23.6 -32.1 -15.2 -7.6 -60.3 -51.2 10.7 40.0 39.9 -59.2 65 Total identified to sectors as assets 1,614.8 1,928.2 1,351.0 1,505.2 1,634.2 1,830.2 1,410.7 1,749.5 1,960.5 1,416.0 1,533.2 2,329.2 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables 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 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 Q4 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 10,054.3 10,692.0 11,160.6 11,742.1 11,160.6 11,285.2 11,422.7 11,576.1 1111,,774422..11 1111,,881177..88 1111,,997733..88 By lending sector and instrument 7 U.S. government 2,251.2 2,498.1 2,776.4 3,080.3 2,776.4 2,859.7 2,923.3 2,998.9 3,080.3 33,,114400..22 33,,220011..22 3 Treasury securities 2,227.0 2,465.8 2,757.8 3,061.6 2,757.8 2,844.0 2,907.4 2,980.7 3,061.6 3,120.6 3,180.6 4 Agency issues and mortgages 24.2 32.4 18.6 18.8 18.6 15.8 15.9 18.1 18.8 19.6 20.6 5 Private 7,803.1 8,193.9 8,384.3 8,661.8 8,384.3 8,425.5 8,499.4 8,577.2 8,661.8 8,677.6 8,772.6 By instrument 6 Tax-exempt obligations 1,004.7 1,062.1 1,131.6 1,197.3 1,131.6 1,145.5 1,163.7 1,186.4 1,197.3 11,,220099..99 11,,222244..00 7 Corporate bonds 961.1 1,008.2 1,086.9 1,154.2 1,086.9 1,106.0 1,125.4 1,140.8 1,154.2 1,173.0 1,189.2 8 Mortgages 3,512.8 3,715.4 3,880.4 4,000.4 3,880.4 3,917.2 3,940.9 3,979.0 4,000.4 4,015.4 4,051.2 9 Home mortgages 2,380.5 2,580.6 2,746.6 2,922.6 2,746.6 2,791.7 2,825.5 2,880.7 2,922.6 2,945.1 2,990.1 10 Multifamily residential 304.3 305.5 303.0 291.9 303.0 305.9 301.8 299.0 291.9 290.5 287.8 11 Commercial 747.6 750.8 751.7 706.2 751.7 740.0 733.8 719.4 706.2 699.7 693.2 1? 80.5 78.4 79.1 79.8 79.1 79.6 79.7 79.8 79.8 80.0 80.1 n Consumer credit 799.5 813.0 799.9 809.2 799.9 777.6 776.9 784.5 809.2 793.9 804.5 14 Bank loans n.e.c 750.8 747.8 701.0 696.3 701.0 686.3 694.7 686.8 696.3 683.9 693.8 15 Commercial paper 107.1 116.9 98.5 107.1 98.5 110.4 112.0 108.2 107.1 114.6 125.0 16 Other loans 667.0 730.6 685.9 697.1 685.9 682.4 685.8 691.6 697.1 686.9 684.9 By borrowing sector 17 Household 3,371.4 3,594.8 3,762.7 3,976.0 3,762.7 3,782.6 3,836.6 3,898.7 33,,997766..00 33,,997799..44 44,,004433..22 18 Nonfinancial business 3,615.7 3,728.5 3,688.7 3,693.5 3,688.7 3,697.6 3,701.8 3,695.5 3,693.5 3,691.2 3,707.8 19 Farm 134.4 134.9 134.8 135.4 134.8 133.1 136.4 137.1 135.4 132.8 136.0 70 Nonfarm noncorporate 1,199.6 1,219.0 1,192.3 1,152.9 1,192.3 1,186.1 1,175.7 1,163.4 1,152.9 1,144.6 1,137.3 71 Corporate 2,281.7 2,374.6 2,361.6 2,405.3 2,361.6 2,378.5 2,389.7 2,394.9 2,405.3 2,413.9 2,434.5 22 State and local government 816.1 870.5 932.8 992.2 932.8 945.3 961.0 983.1 992.2 1,007.0 1,021.6 23 Foreign credit market debt held in United States 261.2 285.1 298.9 313.8 298.9 288.7 304.7 312.9 313.8 324.8 333.2 74 Bonds 94.1 115.4 129.5 146.9 129.5 130.8 136.2 141.3 146.9 165.8 173.4 75 Bank loans n.e.c 21.4 18.5 21.6 23.9 21.6 22.0 25.5 26.5 23.9 24.3 25.9 26 Open market paper 63.0 75.3 81.8 77.7 81.8 70.5 77.4 80.7 77.7 72.3 72.1 27 U.S. government loans 82.7 75.8 66.0 65.4 66.0 65.5 65.6 64.4 65.4 62.5 61.8 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 10,315.5 10,977.1 11,459.5 12,055.9 11,459.5 11,573.9 11,727.4 11,889.0 12,055.9 12,142.6 1122,,330077..00 Financial sectors 79 Total credit market debt owed by financial sectors 2,362.7 2,559.4 2,709.7 2,928.8 2,709.7 2,751.2 2,805.3 2,877.1 2,928.8 22,,996622..11 22,,999955..55 By instrument 30 U.S. government-related 1,247.8 1,418.4 1,564.2 1,720.0 1,564.2 1,590.3 1,641.6 1,683.5 1,720.0 1,755.8 1,774.4 31 Government-sponsored enterprises securities 373.3 393.7 402.9 443.1 402.9 405.7 417.8 434.7 443.1 445511..22 446688..33 32 Mortgage pool securities 869.5 1,019.9 1,156.5 1,272.0 1,156.5 1,179.8 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 33 Loans from U.S. government 5.0 4.9 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 34 Private 1,114.8 1,140.9 1,145.6 1,208.9 1,145.6 1,160.9 1,163.7 1,193.6 1,208.9 1,206.3 1,221.0 35 Corporate bonds 509.1 549.9 606.6 665.4 606.6 613.8 628.6 646.8 665.4 680.4 693.8 36 Mortgages 4.0 4.3 5.1 5.1 5.1 5.0 4.6 4.6 5.1 5.4 5.4 37 Bank loans n.e.c 50.9 52.0 69.1 64.2 69.1 72.7 63.1 67.3 64.2 56.9 54.6 38 Open market paper 409.1 417.7 385.7 394.3 385.7 393.2 390.5 394.6 394.3 378.7 375.2 39 Loans from Federal Home Loan Banks 141.8 117.1 79.1 79.9 79.1 76.3 76.9 80.2 79.9 85.0 92.1 By borrowing sector 40 Government-sponsored enterprises 378.3 398.5 407.7 447.9 407.7 410.5 422.6 439.5 444477..99 445566..00 447733..11 41 Federally related mortgage pools 869.5 1,019.9 1,156.5 1,272.0 1,156.5 1,179.8 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 47 Private financial sectors 1,114.8 1,140.9 1,145.6 1,208.9 1,145.6 1,160.9 1,163.7 1,193.6 1,208.9 1,206.3 1,221.0 43 Commercial banks 77.4 76.7 65.0 73.8 65.0 63.8 66.2 69.0 73.8 73.1 76.7 44 Bank affiliates 142.5 114.8 112.3 114.6 112.3 115.0 112.7 114.4 114.6 119.9 122.6 45 Funding corporations 125.4 137.9 124.3 135.7 124.3 137.6 144.8 143.3 135.7 127.6 126.1 46 Savings institutions 169.2 139.1 94.6 87.8 94.6 89.8 87.6 89.2 87.8 90.3 93.6 47 Credit unions .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .1 48 Life insurance companies .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .2 49 Finance companies 350.4 374.4 393.0 389.4 393.0 382.2 377.4 382.7 389.4 379.1 369.1 50 Mortgage companies 11.3 7.3 13.0 13.0 13.0 19.8 11.0 14.6 13.0 10.4 13.0 51 Real estate investment trusts (REITs) 11.4 12.4 14.0 14.1 14.0 14.4 14.5 14.8 14.1 13.7 13.9 52 Securitized credit obligation (SCO) issuers... 227.3 278.3 329.4 380.4 329.4 338.2 349.5 365.6 380.4 392.2 405.8 All sectors 53 Total credit market debt, domestic and foreign 12,678.2 13,536.5 14,169.3 14,984.7 14,169.3 14,325.1 14,532.7 14,766.1 14,984.7 15,104.7 15,302.5 54 U.S. government securities 3,494.1 3,911.7 4,335.7 4,795.5 4,335.7 4,445.2 4,560.1 4,677.6 4,795.5 4,891.2 4,970.9 55 Tax-exempt securities 1.004.7 1,062.1 1,131.6 1,197.3 1,131.6 1,145.5 1,163.7 1,186.4 1,197.3 1,209.9 1,224.0 56 Corporate and foreign bonds 1,564.3 1,673.5 1,823.1 1,966.4 1,823.1 1,850.5 1,890.2 1,928.9 1,966.4 2,019.1 2,056.4 57 Mortgages 3.516.8 3,719.7 3,885.5 4,005.6 3,885.5 3,922.2 3,945.5 3,983.6 4,005.6 4,020.7 4,056.6 58 Consumer credit 799.5 813.0 799.9 809.2 799.9 777.6 776.9 784.5 809.2 793.9 804.5 59 Bank loans n.e.c 823.0 818.3 791.7 784.5 791.7 780.9 783.3 780.6 784.5 765.2 774.3 60 Open market paper 579.2 609.9 565.9 579.0 565.9 574.1 579.9 583.6 579.0 565.5 572.3 61 Other loans 896.5 928.4 835.8 847.2 835.8 829.0 833.0 841.0 847.2 839.2 843.6 Digitized for FRASER 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical http://fraser.stlroeuleiassfee, dta.bolersg /L .2 through L.4. For ordering address, see inside front cover. Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics • January 1994 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1991 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 Q4 Ql Q2 Q3 Q4 Ql Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 12,678.2 13,536.5 14,169.3 14,984.7 14,169.3 14,325.1 14,532.7 14,766.1 14,984.7 15,104.7 15,302.5 2 Private domestic nonfinancial sectors 2,096.4 2,246.8 2,205.8 2,280.8 2,205.8 2,211.7 2,219.0 2,212.2 2,280.8 2,228.3 2,189.6 3 Households 1,326.8 1,454.6 1,380.0 1,426.1 1,380.0 1,389.1 1,381.1 1,371.7 1,426.1 1,389.6 1,342.3 4 Nonfarm noncorporate business 56.5 54.9 50.7 48.3 50.7 49.3 48.7 48.1 48.3 47.0 46.3 5 Nonfinancial corporate business 181.2 175.8 180.1 216.4 180.1 180.0 192.6 199.5 216.4 204.5 209.8 6 State and local governments 531.9 561.5 595.1 590.0 595.1 593.3 596.6 592.9 590.0 587.3 591.1 7 U.S. government 205.4 239.1 247.0 235.1 247.0 251.2 246.3 239.2 235.1 229.5 223.4 8 Foreign 778.7 897.5 936.2 1,030.4 936.2 959.8 994.5 1,014.3 1,030.4 1,040.5 1,063.6 9 Financial sectors 9,597.7 10,153.1 10,780.3 11,438.5 10,780.3 10,902.4 11,072.9 11,300.3 11,438.5 11,606.5 11,825.9 10 Government-sponsored enterprises 355.4 371.8 397.7 466.4 397.7 419.9 429.0 446.3 466.4 464.1 499.2 11 Federally related mortgage pools 869.5 1,019.9 1,156.5 1,272.0 1,156.5 1,179.8 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 12 Monetary authority 233.3 241.4 272.5 300.4 272.5 271.8 282.6 285.2 300.4 303.6 318.2 13 Commercial banking 2,647.4 2,772.5 2,856.8 2,951.6 2,856.8 2,864.5 2,887.6 2,928.2 2,951.6 2,960.9 3,001.8 14 U.S. commercial banks 2,371.9 2,466.7 2,506.0 2,575.7 2,506.0 2,517.3 2,525.2 2,560.0 2,575.7 2,594.6 2,633.8 15 Foreign banking offices 242.3 270.8 319.2 335.8 319.2 313.3 328.2 328.9 335.8 326.7 328.2 16 Bank holding companies 16.2 13.4 11.9 17.5 11.9 13.6 13.1 17.5 17.5 16.4 15.9 17 Banks in U.S. affiliated areas 17.1 21.6 19.7 22.5 19.7 20.2 21.0 21.8 22.5 23.3 23.9 18 Private nonbank finance 5,491.9 5,747.4 6,096.7 6,448.1 6,096.7 6,166.5 6,254.8 6,396.6 6,448.1 6,578.0 6,705.4 19 Thrift institutions 1,475.4 1,324.6 1,197.3 1,137.3 1,197.3 1,168.6 1,150.5 1,141.3 1,137.3 1,127.9 1,132.7 20 Insurance 2,320.7 2,473.7 2,708.0 2,874.1 2,708.0 2,736.4 2,788.0 2,843.3 2,874.1 2,953.0 2,999.9 21 Life insurance companies 1,022.0 1,116.5 1,199.6 1,282.0 1,199.6 1,222.3 1,243.6 1,264.7 1,282.0 1,317.3 1,352.3 22 Other insurance companies 317.5 344.0 376.3 389.0 376.3 383.5 387.6 386.9 389.0 391.2 393.8 23 Private pension funds 590.2 607.4 692.7 731.5 692.7 684.2 703.4 729.4 731.5 762.3 760.0 24 State and local government retirement funds... 390.9 405.9 439.4 471.6 439.4 446.3 453.3 462.2 471.6 482.2 493.7 25 Finance n.e.c 1,695.9 1,949.1 2,191.5 2,436.6 2,191.5 2,261.5 2,316.2 2,412.0 2,436.6 2,497.1 2,572.8 26 Finance companies 468.6 497.0 484.9 486.6 484.9 479.5 480.5 477.8 486.6 473.7 473.5 27 Mortgage companies 22.6 14.6 25.9 26.1 25.9 31.7 22.1 29.3 26.1 20.8 26.1 28 Mutual funds 307.2 360.2 450.5 582.8 450.5 478.8 522.0 557.5 582.8 626.6 674.7 29 Closed-end funds 37.1 37.1 52.4 64.6 52.4 56.8 59.2 61.3 64.6 66.9 70.1 30 Money market funds 291.8 372.7 402.7 404.1 402.7 424.0 413.5 408.8 404.1 404.5 404.0 31 Real estate investment trusts (REITs) 8.4 7.7 6.8 7.4 6.8 6.8 7.5 7.4 7.4 8.1 8.3 32 Brokers and dealers 142.9 177.9 226.9 267.1 226.9 226.3 244.6 289.6 267.1 287.0 290.6 33 Asset-backed securities (ABSs) 219.3 269.1 318.1 366.7 318.1 326.3 337.6 353.3 366.7 378.4 390.8 34 Bank personal trusts 198.0 212.9 223.3 231.2 223.3 231.3 229.2 226.9 231.2 231.0 234.6 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Total credit market debt 12,678.2 13,536.5 14,169.3 14,984.7 14,169.3 14,325.1 14,532.7 14,766.1 14,984.7 15,104.7 15,302.5 Other liabilities 36 Official foreign exchange 53.6 61.3 55.4 51.8 55.4 52.7 54.4 55.4 51.8 54.5 53.9 37 Treasury currency and special drawing rights certificates 23.8 26.3 26.3 24.5 26.3 26.3 26.4 26.5 24.5 24.6 24.7 38 Life insurance reserves 354.3 380.0 405.7 434.1 405.7 414.2 419.8 426.7 434.1 447.0 457.2 39 Pension fund reserves 3,356.1 3,400.3 4,056.5 4,420.2 4,056.5 4,077.9 4,134.5 4,265.7 4,420.2 4,560.8 4,618.3 40 Interbank claims 32.4 64.0 65.2 116.8 65.2 64.6 70.8 103.7 116.8 111.4 118.2 41 Deposits at financial institutions 4,736.7 4,836.8 4,885.2 4,892.1 4,885.2 4,878.6 4,870.2 4,909.2 4,892.1 4,886.8 4,941.5 42 Checkable deposits and currency 888.6 932.8 1,008.5 1,131.0 1,008.5 984.3 1,032.3 1,071.6 1,131.0 1,093.4 1,170.7 43 Small time and savings deposits 2,277.4 2,336.3 2,353.0 2,292.2 2,353.0 2,351.3 2,325.8 2,303.7 2,292.2 2,261.6 2,249.2 44 Large time deposits 603.4 537.7 476.9 397.2 476.9 459.2 427.5 418.4 397.2 397.7 388.7 45 Money market fund shares 428.1 498.4 539.6 543.6 539.6 572.0 557.2 553.2 543.6 556.6 549.9 46 Security repurchase agreements 396.5 372.3 355.8 389.4 355.8 367.0 393.5 417.6 389.4 443.5 448.2 47 Foreign deposits 142.8 159.4 151.3 138.8 151.3 144.7 133.9 144.6 138.8 134.1 134.7 48 Mutual fund shares 566.2 602.1 813.9 1,050.2 813.9 860.4 928.3 971.2 1,050.2 1,155.7 1,256.5 49 Security credit 133.9 137.4 188.9 217.3 188.9 194.6 193.3 214.5 217.3 225.1 234.5 50 Trade debt 904.2 936.4 926.7 984.7 926.7 938.0 950.0 970.5 984.7 982.6 991.5 51 Taxes payable 81.8 77.4 68.9 76.6 68.9 73.1 70.7 74.5 76.6 81.3 78.6 52 Investment in bank personal trusts 503.2 509.9 596.7 619.1 596.7 612.9 612.7 610.9 619.1 625.0 635.6 53 Miscellaneous 2,591.1 2,732.4 2,884.3 3,052.8 2,884.3 2,891.2 2,951.9 3,023.6 3,052.8 3,086.1 3,145.5 54 Total liabUities 26,015.5 27,300.7 29,143.0 30,924.9 29,143.0 29,409.7 29,815.8 30,418.2 30,924.9 31,345.6 31,858.4 Financial assets not included in liabilities (+) 55 Gold and special drawing rights 21.0 22.0 22.3 19.6 22.3 22.0 22.7 23.2 19.6 19.8 20.0 56 Corporate equities 3,812.9 3,543.7 4,869.4 5,540.6 4,869.4 4,925.6 4,837.0 4,995.4 5,540.6 5,725.7 5,743.8 57 Household equity in noncorporate business 2,508.1 2,440.6 2,344.6 2,269.2 2,344.6 2,353.5 2,337.5 2,316.3 2,269.2 2,239.9 2,248.0 Floats not included in assets (-) 58 U.S. government checkable deposits 6.1 15.0 3.8 6.8 3.8 .9 1.4 4.0 6.8 3.4 3.5 59 Other checkable deposits 26.5 28.9 30.9 32.5 30.9 29.5 32.6 23.3 32.5 22.2 22.1 60 Trade credit -148.6 -146.0 -144.1 -121.8 -144.1 -142.7 -151.1 -144.0 -121.8 -129.5 -141.9 Liabilities not identified as assets (—) 61 Treasury currency -4.3 -4.1 -4.8 -5.0 -4.8 -4.9 -4.9 -5.0 -5.0 -5.0 -5.1 62 Interbank claims -31.0 -32.0 -4.2 -8.4 -4.2 -1.8 -4.0 -4.3 -8.4 -5.2 -4.5 63 Security repurchase agreements 13.7 -17.7 -12.5 18.6 -12.5 -4.8 19.6 33.6 18.6 67.1 71.9 64 Taxes payable 20.6 17.8 15.5 28.5 15.5 10.4 18.9 24.0 28.5 27.9 28.3 65 Miscellaneous -210.7 -213.4 -254.6 -265.7 -254.6 -295.1 -293.7 -279.6 -265.7 -291.7 -295.7 66 Total identified to sectors as assets 32,685.1 33,658.6 36,749.2 39,068.7 36,749.2 37,119.2 37,394.2 38,101.1 39,068.7 39,641.7 40,191.5 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables L.6 and 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, and indexes 1987=100, except as noted 1993 MMeeaassuurree 11999900 11999911 11999922 Feb. Mai. Apr. May June July Aug.* Sept.* Oct. 1 Industrial production1 106.0 104.1 106.5 109.9 110.1 110.4 110.2 110.5 110.8' 110.9 111.4 112.2 Market groupings ? Products, total 105.5 103.1 105.6 109.2 109.5 109.6 109.3 109.4 111100..00** 110.1 111100..77 111111..77 3 Final, total 107.0 105.3 108.2 112.4 112.7 112.8 112.5 112.7 113.2r 113.3 114.1 115.4 4 Consumer goods 103.4 102.8 105.2 108.5 108.6 108.1 107.3 107.3 107.7* 107.5 107.9 109.3 5 Equipment 112.1 108.9 112.7 118.0 118.7 119.7 119.9 120.4 121.2r 121.6 123.0 124.2 6 Intermediate 101.2 96.5 97.6 99.3 99.6 100.0 99.7 99.4 100.4r 100.5 100.5 100.5 7 Materials 106.8 105.5 107.9 110.9 110.9 111.5 111.6 112.1 112.0 112.1 112.4 113.0 Industry groupings 8 Manufacturing 106.1 103.7 106.9 110.5 110.8 111.4 111.3 111.3 111111..66rr 111111..88 111122..55 111133..55 9 Capacity utilization, manufacturing (percent) 81.1 77.8 78.8 80.5 80.6 80.9 80.7 80.6 80.7r 80.7 81.1 81.7 10 Construction contracts3 95.3 89.7 96.3r 95.0 94.0 94.0 91.0 104.0 98.0 99.0 101.0 103.0 11 Nonagricultural employment, total4 107.3 106.2 106.4 107.4 107.5 107.7 107.9 108.0 108.2 108.2 108.4 108.5 17 Goods-producing, total 101.2 96.6 94.9 93.5 93.3 93.1 93.2 93.0 93.0 92.8 92.8 92.9 13 Manufacturing, total 100.6 97.1 95.8 94.5 94.4 94.0 93.8 93.5 93.5 93.3 93.2 93.2 14 Manufacturing, production workers ... 100.2 96.3 95.3 94.5 94.4 94.0 93.8 93.5 93.5 93.2 93.2 93.3 15 Service-producing 109.8 109.3 110.0 111.9 112.0 112.4 112.6 112.8 113.1 113.1 113.3 113.5 16 Personal income, total 122.9 127.6 135.3 138.1 139.1 141.1 141.5 141.3 141.0* 142.8 143.1 n.a. 17 Wages and salary disbursements 121.4 124.5 131.5 131.6 131.6 135.7 136.8 136.5 137.1* 138.1 138.0 n.a. 18 Manufacturing 113.4 113.7 117.8 114.5 114.2 118.8 118.4 118.0 118.2 118.6 119.1 n.a. 19 Disposable personal income5 123.1 128.6 136.8 139.6 140.8 142.5 142.8 142.6 142.1 144.0 144.3 n.a. 20 Retail sales6 120.2 121.3 127.lr 131.9 130.5 133.0 133.9 134.6 135.2 136.2 136.3 138.3 71 Consumer (1982-84= 100) 130.7 136.2 140.3 143.1 143.6 144.0 144.2 144.4 144.4 144.8 114455..11 114455..77 22 Producer finished goods (1982=100) 119.2 121.7 123.2 124.5 124.7 125.5 125.8 125.5r 125.3 124.3 123.9 124.7 1. A major revision of the industrial production index and the capacity 6. Based on data from U.S. Department of Commerce, Survey of Current utilization rates was released in April 1990. See "Industrial Production: 1989 Business. Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 7. Based on data not seasonally adjusted. Seasonally adjusted data for changes 1990), pp. 187-204. in the price indexes can be obtained from the U.S. Department of Labor, Bureau 2. Ratio of index of production to index of capacity. Based on data from the of Labor Statistics, Monthly Labor Review. Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and sources. indexes for series mentioned in notes 3 and 7 can also be found in the Survey of 3. Index of dollar value of total construction contracts, including residential, Current Business. nonresidential, and heavy engineering, from McGraw-Hill Information Systems Figures for industrial production for the latest month are preliminary, and many Company, F.W. Dodge Division. figures for the three months preceding the latest month have been revised. See 4. Based on data from U.S. Department of Labor, Employment and Earnings. "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Series covers employees only, excluding personnel in the armed forces. Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial Production Capacity 5. Based on data from U.S. Department of Commerce, Survey of Current and Capacity Utilization since 1987," Federal Reserve Bulletin, vol. 79, (June Business. 1993), pp. 590-605. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted except as noted 1993 CCaatteeggoorryy 11999900 11999911 11999922 Mar. Apr. May June July Aug. Sept.* Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 189,686 191,329 193,142 194,456 194,618 194,767 194,933 195,104 195,275 195,453 195,626 7 Labor force1 126,424 126,867 128,548 128,926 128,833 129,615 129,604 129,541 129,852 129,457 130,189 3 Civilian labor force 124,787 125,303 126,982 127,429 127,341 128,131 128,127 128,070 128,370 127,975 128,714 4 Nonagricultural industries2 114,728 114,644 114,391 115,483 115,356 116,203 116,195 116,262 116,729 116,362 116,936 5 Agriculture 3,186 3,233 3,207 3,082 3,060 3,070 3,024 3,039 2,980 3,095 2,991 6 Number 6,874 8,426 9,384 8,864 8,925 8,858 8,908 8,769 8,661 8,517 8,786 7 Rate (percent of civilian labor force) 5.5 6.7 7.4 7.0 7.0 6.9 7.0 6.8 6.7 6.7 6.8 8 Not in labor force 63,262 64,462 64,594 65,530 65,785 65,152 65,329 65,563 65,423 65,996 65,437 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 109,419 108,256 108,519 109,565 109,820 110,058 110,101 110,338 110,305* 110,467 110,644 in 19,117 18,455 18,192 17,935 17,863 17,827 17,771 17,760 17,718* 17,697 17,709 ii Mining 709 689 631 600 600 602 596 595 592 5% 597 17 Contract construction 5,120 4,650 4,471 4,481 4,517 4,577 4,574 4,593 4,593* 4,595 4,625 13 Transportation and public utilities 5,793 5,762 5,709 5,724 5,720 5,719 5,711 5,709 5,690* 5,695 5,692 14 Trade 25,774 25,365 25,391 25,707 25,758 25,827 25,861 25,916 25,902* 25,952 25,963 15 6,709 6,646 6,571 6,574 6,585 6,588 6,590 6,604 6,602* 6,614 6,634 16 27,934 28,336 29,053 29,756 29,977 30,099 30,175 30,320 30,381* 30,419 30,533 17 18,304* 18,402* 18,653* 18,788 18,800 18,819 18,823 18,841 18,827* 18,899 18,891 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 • January 1994 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1992 1993 1992 1993 1992 1993 Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent)2 1 Total industry 108.3 109.7 110.4 111.0 134.2 134.8 135.3 135.9 80.7 81.4 81.6 81.7 2 Manufacturing 108.7 110.4 111.3 112.0 136.6 137.2 137.8 138.5 79.6 80.5 80.8 80.9 3 Primary processing3 104.7 106.4 107.2 107.8 126.6 126.8 127.1 127.4 82.7 83.9 84.3 84.6 4 Advanced processing 110.6 112.3 113.2 113.9 141.3 142.1 142.9 143.7 78.3 79.0 79.2 79.3 5 Durable goods 110.8 113.6 114.8 115.9 142.6 143.4 144.1 144.9 77.7 79.2 79.7 80.0 6 Lumber and products 98.5 99.7 97.3 99.8 112.5 112.6 112.7 112.9 87.6 88.5 86.3 88.5 7 Primary metals 101.5 105.0 104.8 105.7 125.0 124.9 124.9 124.9 81.2 84.1 83.9 84.6 8 Iron and steel 105.0 109.1 109.1 111.5 129.9 129.8 130.0 130.1 80.8 84.1 84.0 85.7 9 Nonferrous 96.7 99.3 98.8 97.6 118.2 118.1 117.9 117.7 81.8 84.1 83.8 82.9 10 Nonelectrical machinery 132.4 137.1 144.2 150.0 162.1 163.7 165.5 167.3 81.7 83.8 87.1 89.6 11 Electrical machinery 124.0 127.1 129.6 133.6 152.6 154.1 155.7 157.3 81.2 82.5 83.2 84.9 12 Motor vehicles and parts 111.4 120.6 117.6 111.6 154.5 155.8 156.8 157.7 72.1 77.4 75.0 70.7 13 Aerospace and miscellaneous transportation equipment . 97.7 95.7 93.2 91.6 135.8 135.7 135.5 135.4 72.0 70.5 68.8 67.7 14 Nondurable goods 106.1 106.5 107.0 107.1 129.1 129.6 130.1 130.6 82.1 82.2 82.3 82.0 15 Textile mill products 105.2 106.2 106.1 107.0 116.7 116.9 117.1 117.3 90.1 90.8 90.6 91.2 16 Paper and products 107.9 110.0 113.1 112.7 122.1 122.5 122.9 123.3 88.4 89.8 92.0 91.4 17 Chemicals and products 116.9 116.9 118.3 118.7 143.5 144.4 145.4 146.3 81.4 80.9 81.4 81.1 18 Plastics materials 106.6 111.7 113.1 128.8 129.5 130.5 82.8 86.2 86.7 85.5 19 Petroleum products 104.2 104.2 103.9 103.6 116.2 115.9 115.7 115.4 89.7 89.9 89.8 89.7 20 Mining 97.9 96.5 97.2 96.3 112.0 111.7 111.5 111.3 87.4 86.3 87.2 86.6 21 Utilities 114.7 116.0 113.8 116.5 131.8 132.2 132.5 132.9 87.1 87.8 85.9 87.7 22 Electric 114.3 115.2 114.7 117.4 128.5 129.0 129.4 129.9 89.0 89.3 88.6 90.4 1973 1975 Previous cycle2 Latest cycle3 1992 1993 High Low High Low High Low Oct. May June Julyr Aug.r Sept.r Oct.P Capacity utilization rate (percent)2 1 Total industry 99.0 82.7 87.3 71.8 84.8 78.3 80.2 81.5 81.5 81.7 81.6 81.9 82.4 2 Manufacturing 99.0 82.7 87.3 70.0 85.1 76.6 79.2 80.7 80.6 80.7 80.7 81.1 81.7 3 Primary processing3 99.0 82.7 89.7 66.8 89.1 77.9 82.3 84.2 84.5 84.5 84.7 84.7 85.0 4 Advanced processing4 99.0 82.7 86.3 71.4 83.3 76.1 77.9 79.3 78.9 79.2 79.1 79.6 80.3 5 Durable goods 99.0 82.7 86.9 65.0 83.9 73.8 77.1 79.7 79.4 79.8 79.8 80.5 81.4 6 Lumber and products 99.0 82.7 87.6 60.9 93.3 76.8 87.0 86.4 85.5 87.8 88.4 89.2 89.6 7 Primary metals 99.0 82.7 102.4 46.8 92.9 74.3 80.4 83.5 84.6 84.3 84.8 84.6 85.0 8 Iron and steel 99.0 82.7 110.4 38.3 95.7 72.3 80.0 83.2 85.3 86.0 86.2 84.8 85.8 9 Nonferrous 99.0 82.7 90.5 62.2 88.9 75.9 80.8 83.9 83.6 81.8 82.7 84.3 83.9 10 Nonelectrical machinery 99.0 82.7 92.1 64.9 83.7 73.0 80.8 87.1 87.5 89.1 89.5 90.3 91.1 11 Electrical machinery 99.0 82.7 89.4 71.1 84.9 76.8 80.6 83.3 83.3 84.4 84.9 85.6 86.0 12 Motor vehicles and parts .... 99.0 82.7 93.0 44.5 84.5 57.9 70.1 75.3 72.7 70.0 69.8 72.4 77.5 13 Aerospace and miscellaneous transportation equipment. 99.0 82.7 81.1 66.9 88.3 78.1 72.4 69.1 67.7 67.9 67.7 67.4 67.2 14 Nondurable goods 99.0 82.7 87.0 76.9 86.8 80.4 82.0 82.2 82.3 82.0 82.0 82.0 82.1 15 Textile mill products 99.0 82.7 91.7 73.8 92.1 78.7 88.7 91.2 91.4 91.8 91.4 90.4 90.8 16 Paper and products 99.0 82.7 94.2 82.0 94.9 86.0 88.0 91.2 92.8 90.9 91.9 91.5 91.0 17 Chemicals and products 99.0 82.7 85.1 70.1 85.9 78.5 81.1 81.3 81.7 81.3 81.1 81.0 81.4 18 Plastics materials 99.0 82.7 90.9 63.4 97.0 75.5 84.1 85.7 86.7 85.0 85.6 85.9 86.0 19 Petroleum products 99.0 82.7 89.5 68.2 88.5 84.2 90.5 89.6 89.9 88.7 88.7 91.8 93.6 20 Mining 99.0 82.7 96.6 80.6 87.0 86.8 87.1 87.2 87.9 86.5 85.8 87.4 86.9 21 Utilities 99.0 82.7 88.3 76.2 92.6 83.4 85.6 84.6 86.6 88.1 88.7 86.4 86.4 22 Electric 99.0 82.7 88.3 78.7 94.8 87.4 87.7 88.1 89.2 91.1 91.5 88.5 88.5 1. Data in this table also appear in the Board's G.17 (419) monthly statistical 3. Primary processing includes textiles; lumber; paper; industrial chemicals; release. For ordering address, see inside front cover. For a detailed description of petroleum refining; rubber and plastics; stone, clay, and glass; and primary and the series, see "Recent Developments in Industrial Capacity and Utilization," fabricated metals. Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial 4. Advanced processing includes food, tobacco, apparel, furniture, printing, Production Capacity and Capacity Utilization Since 1987," Federal Reserve chemical products such as drugs and toiletries, leather and products, machinery, Bulletin, vol. 79, (June 1993), pp. 590-605. transportation equipment, instruments, miscellaneous manufacturing, and ord- 2. Capacity utilization is calculated as the ratio of the Federal Reserve's nance. seasonally adjusted index of industrial production to the corresponding index of 5. Monthly highs, 1978 through 1980; monthly lows, 1982. capacity. 6. 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 GGrroouupp p p r o o r - - a 1 v 99 g 2 . tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June JJuull// Aug.r Sept/ Oct." Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 106.5 107.5 108.4 108.9 109.3 109.9 110.1 110.4 110.2 110.5 110.8 110.9 111.4 112.2 7 Products 60.8 105.6 107.1 107.8 108.2 108.5 109.2 109.5 109.6 109.3 109.4 110.0 110.1 110.7 111.7 Final products 46.0 108.2 110.1 111.0 111.5 111.9 112.4 112.7 112.8 112.5 112.7 113.2 113.3 114.1 115.4 4 Consumer goods, total 26.0 105.2 106.4 107.1 107.5 107.6 108.5 108.6 108.1 107.3 107.3 107.7 107.5 107.9 109.3 5 Durable consumer goods 5.6 102.5 104.1 105.7 107.9 110.9 111.3 111.5 112.2 110.8 107.9 108.6 107.9 109.4 113.3 6 Automotive products 2.5 99.4 103.1 104.1 108.7 112.7 111.9 111.2 112.1 109.7 105.3 103.3 103.0 106.4 113.0 7 Autos and trucks 1.5 96.9 101.5 102.9 111.7 116.8 114.6 113.4 114.3 110.1 105.0 100.3 99.2 104.1 114.9 8 Autos, consumer .9 79.0 78.5 79.6 86.9 86.6 90.2 90.5 90.2 86.5 83.5 78.2 71.8 75.4 85.2 9 Trucks, consumer .6 127.9 141.3 143.3 154.6 169.1 156.9 153.1 155.9 150.9 142.3 138.6 146.7 153.9 166.4 10 Auto parts and allied goods... 1.0 103.7 105.9 106.0 103.8 105.8 107.4 107.5 108.5 109.1 105.8 108.4 109.3 110.1 109.9 11 Other 3.1 105.2 104.9 107.1 107.2 109.3 110.7 111.7 112.3 111.8 110.2 113.2 112.3 112.0 113.5 1? Appliances, A/C, and TV .8 110.4 110.8 110.8 110.5 116.0 117.6 125.0 124.3 121.1 116.1 127.3 124.6 124.5 127.9 N Carpeting and furniture .9 99.9 98.5 103.7 105.4 105.5 106.7 104.5 106.2 108.9 109.1 109.9 108.1 107.2 109.1 14 Miscellaneous home goods ... 1.4 105.6 105.8 107.1 106.6 108.0 109.5 108.9 109.6 108.4 107.6 107.4 108.0 108.1 108.1 IS Nondurable consumer goods 20.4 105.9 107.1 107.5 107.4 106.7 107.7 107.7 106.9 106.3 107.2 107.4 107.4 107.5 108.1 16 Foods and tobacco 9.1 104.7 105.9 105.2 104.8 104.6 105.5 104.3 103.9 104.3 104.7 104.9 105.1 105.4 106.1 17 Clothing 2.6 95.0 94.5 95.9 96.0 95.7 95.0 94.6 94.9 94.2 94.6 93.6 93.0 92.3 91.6 18 Chemical products 3.5 118.7 121.1 123.3 121.7 122.4 121.1 123.7 123.1 122.6 123.0 124.0 122.6 123.9 124.9 19 Paper products 2.5 100.8 100.1 100.9 100.9 100.2 101.8 102.1 101.7 101.8 102.6 101.3 100.8 102.1 102.0 70 Energy 2.7 108.3 111.1 112.0 114.4 109.5 115.5 116.0 111.5 107.4 110.4 112.9 115.0 112.7 114.1 71 Fuels .7 104.7 109.8 107.7 106.1 106.5 108.9 107.1 106.6 106.5 105.8 105.0 104.0 110.0 114.2 22 Residential utilities 2.0 109.6 111.6 113.6 117.5 110.7 118.0 119.5 113.4 107.7 112.2 116.0 119.3 113.7 114.1 71 Equipment 20.0 112.7 115.4 116.7 117.2 118.1 118.0 118.7 119.7 119.9 120.4 121.2 121.6 123.0 124.2 74 Business equipment 13.9 123.2 127.5 129.0 129.6 131.2 131.7 133.4 134.8 135.4 136.1 137.1 137.6 139.4 141.3 75 Information processing and related .. 5.6 134.7 142.2 142.9 143.2 144.4 146.1 149.1 150.6 153.5 155.7 158.2 158.8 161.1 162.6 76 Office and computing 1.9 168.3 183.1 184.5 186.4 192.0 198.0 203.3 209.5 216.5 221.0 226.5 232.0 236.7 242.0 77 Industrial 4.0 108.5 110.1 112.0 112.3 113.1 112.2 113.7 115.0 115.0 115.6 117.2 117.0 117.5 117.9 78 Transit 2.5 137.1 137.4 140.4 144.1 146.7 146.5 145.0 145.0 142.5 138.0 133.2 133.2 136.8 143.7 79 Autos and trucks 1.2 117.9 121.7 123.9 131.4 136.7 136.8 135.8 136.2 133.1 127.2 118.9 119.6 126.5 139.6 30 Other 1.9 104.7 108.8 110.7 109.2 112.6 113.4 114.9 117.5 116.2 117.6 119.6 121.7 122.7 123.8 31 Defense and space equipment 5.4 85.9 83.5 83.2 82.5 82.0 81.5 80.7 80.5 79.5 78.6 78.6 78.1 77.9 77.2 37 Oil and gas well drilling .6 78.3 82.7 86.4 91.2 89.0 77.9 71.1 72.4 75.1 82.4 81.0 87.8 90.5 88.9 33 Manufactured homes .2 99.7 110.4 118.5 128.6 129.4 127.1 116.2 114.9 112.1 113.6 118.5 116.2 120.6 121.4 34 Intermediate products, total 14.7 97.6 97.8 98.1 98.3 98.2 99.3 99.6 100.0 99.7 99.4 100.4 100.5 100.5 100.5 35 Construction supplies 6.0 93.8 94.7 95.1 94.5 94.8 97.5 96.4 96.4 97.7 96.8 98.4 98.5 99.5 99.7 36 Business supplies 8.7 100.1 99.9 100.0 100.8 100.5 100.5 101.8 102.5 101.0 101.1 101.7 101.8 101.2 101.1 37 Materials 39.2 107.9 108.1 109.3 110.0 110.4 110.9 110.9 111.5 111.6 112.1 112.0 112.1 112.4 113.0 38 Durable goods materials 19.4 108.9 109.7 111.1 111.9 113.3 114.2 114.1 114.9 114.8 114.9 115.4 115.5 116.6 117.9 39 Durable consumer parts 4.2 101.5 101.8 104.3 107.5 110.8 111.8 112.2 112.6 111.6 110.2 109.8 110.3 110.9 114.0 40 Equipment parts 7.3 116.5 118.3 119.3 119.7 120.4 121.0 121.3 122.7 123.5 124.1 124.9 126.1 128.0 129.5 41 Other 7.9 106.0 106.2 107.4 107.5 108.6 109.7 108.9 109.5 109.2 109.4 110.2 109.2 109.8 110.1 47 Basic metal materials 2.8 108.3 108.3 109.8 108.8 110.4 113.2 109.9 110.3 111.1 111.3 111.3 109.6 110.2 111.4 43 Nondurable goods materials 9.0 110.9 110.7 112.0 111.5 112.4 112.1 112.8 113.8 114.1 114.8 114.2 115.3 114.5 115.0 44 Textile materials 1.2 102.8 102.7 103.4 102.9 104.2 103.2 104.2 102.7 104.3 104.9 105.9 105.6 103.7 104.9 45 Pulp and paper materials 1.9 109.9 109.1 110.2 110.7 110.7 111.9 112.8 115.3 114.1 115.9 113.4 113.7 113.8 113.7 46 Chemical materials 3.8 114.2 114.4 115.6 114.6 114.9 114.6 115.6 116.1 117.2 118.6 117.3 119.6 118.3 119.1 47 Other 2.1 110.4 109.7 112.0 111.3 114.1 112.5 112.6 114.2 113.6 112.3 114.0 114.4 114.1 114.1 48 Energy materials 10.9 103.4 103.0 103.9 105.1 103.4 103.8 103.5 103.4 103.4 104.6 103.7 102.9 102.7 102.4 49 Primary energy 7.2 99.7 99.4 100.2 101.3 100.4 98.3 97.4 99.9 101.6 100.9 98.2 96.7 97.8 97.2 50 Converted fuel materials 3.7 110.6 110.0 111.1 112.4 109.1 114.6 115.4 110.3 106.8 111.7 114.5 115.0 112.3 112.7 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 106.6 107.4 108.4 108.6 108.9 109.5 109.7 110.1 110.0 110.4 110.9 111.0 111.4 111.9 52 Total excluding motor vehicles and parts... 95.3 106.6 107.5 108.4 108.6 108.7 109.3 109.6 109.9 109.8 110.3 110.9 110.9 111.2 111.7 53 Total excluding office and computing machines 97.5 105.0 105.7 106.6 107.1 107.3 107.8 107.8 108.0 107.7 107.8 108.1 108.0 110088..44 110099..11 54 Consumer goods excluding autos and trucks 24.5 105.7 106.8 107.4 107.3 107.0 108.1 108.2 107.6 107.1 107.5 108.2 108.1 110088..22 110088..99 55 Consumer goods excluding energy 23.3 104.8 105.9 106.6 106.8 107.4 107.7 107.7 107.6 107.3 107.0 107.1 106.7 107.4 108.7 56 Business equipment excluding autos and trucks 12.7 123.7 128.0 129.5 129.5 130.7 131.3 133.2 134.6 135.6 136.8 113388..77 139.1 114400..55 114411..44 57 Business equipment excluding office and computing equipment 12.0 115.7 118.1 119.7 120.1 121.0 120.6 121.6 122.2 121.8 112211..88 112222..11 112211..77 112233..00 112244..44 58 Materials excluding energy 28.4 109.5 110.0 111.4 111.8 113.0 113.6 113.7 114.6 114.6 114.9 115.1 115.5 116.0 117.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • January 1994 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1987 1992 1993 Tron c S o I d C e 2 p p r o o r - - a 1 v 99 g 2 . tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.r Sept.r Oct.P Index (1987 = 100) MAJOR INDUSTRIES 59 Total index 100.0 106.5 107.5 108.4 108.9 109.3 109.9 110.1 110.4 110.2 110.5 110.8 110.9 111.4 112.2 60 Manufacturing 84.3 106.9 108.0 108.9 109.2 109.9 110.5 110.8 111.4 111.3 111.3 111.6 111.8 112.5 113.5 61 Primary processing 27.1 103.8 104.1 105.1 105.0 105.8 106.9 106.4 107.1 107.1 107.5 107.6 107.9 108.0 108.4 62 Advanced processing 57.1 108.3 109.9 110.7 111.3 111.9 112.2 112.9 113.4 113.3 113.0 113.5 113.6 114.6 115.8 63 Durable goods 46.5 108.1 109.8 110.9 111.8 112.9 113.8 114.1 115.0 114.9 114.6 115.4 115.6 116.8 118.3 64 Lumber and products... "24 2.1 96.4 97.8 99.8 98.0 99.3 101.8 98.0 98.1 97.4 96.5 99.1 99.7 100.7 101.2 65 Furniture and fixtures... 25 1.5 99.0 100.4 102.3 103.9 105.2 106.0 107.3 108.8 108.4 109.5 111.1 111100..77 111.1 112.3 66 Clay, glass, and stone products 32 2.4 96.0 96.8 97.6 98.0 97.0 98.9 98.6 99.8 99.6 100.5 100.8 100.0 101.6 101.4 67 Primary metals 33 3.3 101.1 100.5 101.6 102.4 102.8 108.0 104.2 104.4 104.2 105.7 105.3 106.0 105.7 106.2 68 Iron and steel 331,2 1.9 104.7 104.1 103.6 107.4 107.0 112.9 107.6 108.4 108.1 110.9 111.9 112.2 110.5 111.7 69 Raw steel .1 101.2 99.8 102.8 104.6 103.4 105.9 102.0 102.6 105.1 106.8 108.2 106.2 105.3 108.1 70 Nonferrous 333-6,9 1.4 96.1 95.6 98.7 95.7 97.1 101.4 99.4 98.9 98.9 98.5 96.3 97.4 99.2 98.6 71 Fabricated metal products 34 5.4 96.7 97.5 97.6 97.8 99.8 99.7 100.3 101.4 100.6 100.1 101.2 100.8 100.6 101.5 72 Industrial and commercial machinery and computer equipment . 35 8.5 124.8 130.6 132.8 133.8 135.0 136.7 139.6 142.8 144.2 145.4 148.5 149.8 151.6 153.4 73 Office and computing machines 357 2.3 168.3 183.1 184.5 186.4 192.0 198.0 203.3 209.5 216.5 221.0 226.5 232.0 236.7 242.0 74 Electrical machinery 36 6.9 119.8 122.6 124.4 124.8 125.8 127.1 128.5 129.0 129.7 130.1 132.3 133.5 135.1 136.2 75 Transportation equipment 37 9.9 102.6 103.0 103.6 106.3 108.4 107.8 106.9 106.9 105.5 102.6 100.8 100.6 102.4 106.3 76 Motor vehicles and parts 371 4.8 104.8 108.0 109.9 116.2 120.9 120.7 120.1 120.4 118.1 114.3 110.1 110.2 114.5 122.8 77 Autos and light trucks 2.2 101.4 104.1 105.4 114.4 118.2 117.8 116.9 117.5 113.1 108.2 102.8 99.9 104.8 116.3 78 Aerospace and miscellaneous transportation equipment... 372-6,9 5.1 100.6 98.3 97.7 97.1 96.7 95.8 94.6 94.2 93.7 91.8 92.0 91.6 91.2 90.9 79 Instruments 38 5.1 104.2 103.7 103.6 103.3 103.0 102.2 103.3 102.6 102.5 102.5 102.8 101.3 101.9 102.1 80 Miscellaneous 39 1.3 109.7 110.5 111.4 111.8 110.9 111.9 112.6 114.3 113.1 112.1 112.3 112.5 114.3 114.2 81 Nondurable goods 37.8 105.4 105.8 106.4 106.0 106.4 106.4 106.6 106.9 106.9 107.2 107.0 107.1 107.2 107.5 82 Foods "20 8.8 106.0 106.8 106.4 106.2 105.9 106.9 106.7 106.7 106.7 107.1 107.2 107.6 107.7 108.3 83 Tobacco products 21 1.0 99.2 102.4 101.9 96.1 100.5 99.3 92.4 90.2 92.1 89.1 91.5 92.4 94.2 95.5 84 Textile mill products 22 1.8 104.7 103.5 106.0 106.0 106.9 106.2 105.4 104.2 106.9 107.1 107.7 107.3 106.1 106.7 85 Apparel products 23 2.3 92.3 91.7 92.9 92.7 93.1 92.5 92.1 92.0 91.2 91.1 90.7 90.3 89.2 88.6 86 Paper and products 26 3.6 108.2 107.3 108.2 108.3 108.6 110.4 111.1 113.1 112.1 114.2 112.0 113.3 112.9 112.5 87 Printing and publishing.. 27 6.5 95.0 94.5 94.2 94.7 94.7 94.0 94.7 95.6 94.7 94.5 93.8 93.1 93.2 93.1 88 Chemicals and products. 28 8.8 115.0 116.2 117.7 116.7 116.8 116.2 117.6 117.8 118.1 119.1 118.7 118.7 118.8 119.7 89 Petroleum products 29 1.3 102.0 105.3 103.9 103.4 103.2 104.7 104.7 104.3 103.6 103.9 102.5 110022..44 105.9 107.9 90 Rubber and plastic products 30 3.2 109.7 109.9 111.3 111.3 113.6 112.7 112.9 113.6 113.8 112.8 114.7 114.8 115.1 114.8 91 Leather and products ... 31 .3 92.6 95.1 96.6 96.7 97.1 99.0 99.1 100.1 98.2 97.0 96.8 97.0 98.3 99.8 92 Mining 8.0 97.6 97.6 97.8 98.2 98.3 95.9 95.3 96.4 97.3 98.0 96.4 95.5 97.2 96.6 93 Metal "lO .3 161.7 168.1 171.6 158.1 167.7 163.0 158.2 162.5 169.3 164.4 167.7 148.8 159.5 164.1 94 Coal 11,12 1.2 105.5 103.8 103.5 107.9 108.2 101.7 102.3 108.2 106.4 106.7 101.0 95.9 103.9 105.3 95 Oil and gas extraction 13 5.8 92.6 92.7 92.8 93.4 92.7 90.9 90.4 90.5 91.6 93.1 91.6 92.4 92.4 91.2 96 Stone and earth minerals .. 14 .7 93.8 93.6 94.4 92.6 93.8 95.2 93.4 92.3 94.0 91.7 93.2 94.7 94.9 94.2 97 Utilities 7.7 112.0 112.7 114.7 116.8 112.8 117.5 117.8 114.4 112.1 114.9 116.9 117.8 114.9 115.0 98 Electric 491,3FT 6.1 111.6 112.6 114.1 116.4 112.9 116.5 116.3 114.5 114.0 115.6 118.1 118.8 115.1 115.2 99 Gas 492,3PT 1.6 113.2 113.2 117.3 118.2 112.4 121.4 123.3 113.9 104.9 112.2 112.4 113.9 114.0 114.4 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 79.5 107.0 108.0 108.8 108.8 109.3 109.8 110.2 110.8 110.9 111.1 111.7 111.9 112.3 112.9 101 Manufacturing excluding office and computing machines 81.9 105.1 105.9 106.7 107.0 107.6 108.0 108.1 108.6 108.3 108.1 108.3 108.3 108.9 109.8 Gross value (billions of 1987 dollars, annual rates) MAJOR MARKETS 102 Products, total 1,707.0 1,806.4 1,835.6 1,846.7 1,857.5 1,864.9 1,880.2 1,880.3 1,882.8 1,872.6 1,873.2 1,877.4 1,877.3 1,892.5 1,917.4 103 Final 1,314.6 1,420.1 1,448.1 1,457.1 1,466.8 1,476.4 1,485.7 1,484.3 1,485.6 1,477.9 1,477.5 1,479.0 1,478.7 1,493.3 1,518.4 104 Consumer goods 866.6 913.0 928.4 931.6 936.3 940.0 949.4 946.1 943.6 936.1 935.5 935.5 933.8 940.7 957.2 105 Equipment 448.0 507.1 519.7 525.5 530.5 536.5 536.3 538.2 541.9 541.8 541.9 543.4 545.0 552.6 561.2 106 Intermediate 392.5 386.4 387.4 389.6 390.7 388.4 394.5 396.0 397.3 394.7 395.7 398.4 398.6 399.2 398.9 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 Dec. Jan. Feb. Mar. Apr. May June Julyr Aug/ Sept. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,111 949 1,095 1,1% 1,157 1,141 1,034 1,101 1,121 1,115 1,162 1,242 1,271 7 794 754 911 1,037 972 957 871 925 919 925 977 1,015 1,047 3 Two-or-more-family 317 195 184 159 185 184 163 176 202 190 185 227 224 4 Started 1,193 1,014 1,200 1,286 1,171 1,180 1,124 1,206 1,248 1,248 1,232 1,328 1,359 5 One-family 895 840 1,030 1,133 1,051 1,036 987 1,059 1,107 1,079 1,064 1,183 1,157 6 Two-or-more-family 298 174 169 153 120 144 137 147 141 169 168 145 202 7 Under construction at end of period'.. 711 606 612 644 641 641 635 637 645 649 658 663 676 8 One-family 449 434 473 501 506 508 502 506 515 517 527 535 543 9 Two-or-more-family 262 173 140 143 135 133 133 131 130 132 131 128 133 10 1,308 1,091 1,158 1,227 1,136 1,241 1,108 1,222 1,129 1,158 1,088 1,260 1,162 11 One-family 966 838 964 1,016 980 1,049 995 1,075 987 987 947 1,078 1,034 17 Two-or-more-family 342 253 194 211 156 192 113 147 142 171 141 182 128 13 Mobile homes shipped 188 171 210 266 267 262 247 241 230 237 241 245 251 Merchant builder activity in one-family units 14 535 507 610 662 603 597 602 689 629 664411rr 664455 663311 776622 15 Number for sale at end of period ... 321 284 265 265 266 268 270 271 274 274 276 286 288 Price of units sold (thousands of dollars) 16 122.3 120.0 121.3 126.0 118.0 129.4 125.0 127.0 129.9 124.5r 124.0 127.4 129.0 17 149.0 147.0 144.9 146.2 138.9 149.4 146.6 148.4 152.3 145.7r 144.1 149.2 149.6 EXISTING UNITS (one-family) 18 Number sold 3,211 3,219 3,520 4,040 3,780 3,460 3,370 3,450 3,620 3,680 3,860 3,810 3,910 Price of units sold (thousands of dollars)2 19 95.2 99.7 103.6 104.2 103.1 103.6 105.1 105.8 106.5 109.3 108.5 109.0 107.7 20 Average 118.3 127.4 130.8 131.0 129.4 129.6 131.5 133.0 132.8 137.4 136.0 135.8 133.8 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 442,142 403,439 436,043 455,239 451,271 453,820 454,465 449,054 453,256 460,680 465,294 467,442 471,279 77 334,681 293,536 317,256 335,354 335,484 334,801 336,972 328,150 332,231 335,028 336,714 340,019 341,647 73 Residential 182,856 157,837 187,820 206,417 207,214 205,730 205,519 197,317 198,380 200,4% 203,869 206,244 208,131 74 Nonresidential 151,825 135,699 129,436 128,937 128,270 129,071 131,453 130,833 133,851 134,532 132,845 133,775 133,516 75 Industrial buildings 23,849 22,281 20,720 19,961 19,600 20,484 22,152 19,458 20,091 19,316 19,780 20,028 20,684 76 Commercial buildings 62,866 48,482 41,523 39,602 41,414 42,317 41,323 42,426 42,428 42,723 41,660 42,037 41,100 77 Other buildings 21,591 20,797 21,494 20,900 21,123 21,564 21,484 22,568 23,293 23,849 23,808 25,110 24,634 28 Public utilities and other 43,519 44,139 45,699 48,474 46,133 44,706 46,494 46,381 48,039 48,644 47,597 46,600 47,098 79 Public 107,461 109,900 118,784 119,885 115,786 119,019 117,493 120,904 121,025 125,652 128,581 127,423 129,632 30 2,664 1,837 2,502 2,394 2,621 2,703 2,586 2,533 2,393 2,234 2,386 2,3% 2,215 31 32,108 32,026 34,929 33,411 30,648 33,009 33,413 34,534 34,320 37,649 37,056 35,268 37,654 V, Conservation and development... 4,557 4,861 5,918 8,144 5,732 6,688 7,112 5,875 6,019 6,103 6,017 5,901 5,655 33 Other 68,132 71,176 75,435 75,936 76,785 76,619 74,382 77,%2 78,293 79,666 83,122 83,858 84,108 1. Not at annual rates. Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices 2. Not seasonally adjusted. of existing units, which are published by the National Association of Realtors. All 3. Recent data on value of new construction may not be strictly comparable back and current figures are available from the originating agency. Permit with data for previous periods because of changes by the Bureau of the Census in authorizations are those reported to the Census Bureau from 17,000 jurisdictions its estimating techniques. For a description of these changes, see Construction beginning in 1984. Reports (C-30-76-5), issued by the Census Bureau in July 1976. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are private, domestic shipments as reported by the Manufactured Housing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • January 1994 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data except as noted Change from 12 Change from 3 months earlier Change from 1 month earlier months earlier (annual rate) IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1992 1993r 19931 OOOcccttt... 11999922 11999933 111999999333111 OOcctt.. OOcctt.. Dec.r Mar. June Sept. June July Aug. Sept. Oct. CONSUMER PRICES2 (1982-84=100) 1 AU items 3.2 2.8 3.2 4.0 2.2 1.4 .0 .1 .3 .0 .4 145.7 2 Food 1.8 2.4 1.4 2.6 1.4 1.7 -.4 .0 .3 .1 .6 141.6 3 Energy items 2.7 .9 1.9 3.1 -3.8 -3.4 -.2 .0 -.5 -.4 1.9 105.4 4 All items less food and energy 3.5 3.0 3.8 4.3 2.9 1.9 .1 .1 .3 .1 .3 153.5 5 Commodities 2.7 1.6 1.5 4.6 .6 -.3 -.1 .0 .3 -.4 .3 136.0 6 Services 3.9 3.7 4.7 4.4 4.1 2.7 .2 .2 .3 .2 .3 163.6 PRODUCER PRICES (1982=100) 7 Finished goods 1.8 .2 -.3 4.3 .0 -1.9 -,6r .0r -.6 .2 -.2 124.7 8 Consumer foods .7 1.4 3.3 -1.6 1.6 4.2 -1.0 -,2r .5 .7 -.5 125.5 9 Consumer energy 2.2 -1.4 -10.2 16.6 -3.0 -7.4 -,5r -i.R -.8 .0 1.3 78.9 10 Other consumer goods 2.3 -.7 1.2 3.2 .6 -5.9 -,5r ,2r -1.7 .0 -.5 137.3 11 Capital equipment 1.8 1.7 .6 4.4 .3 2.2 — .2r .3r .2 .0 -.4 132.4 Intermediate materials 12 Excluding foods and feeds 1.2 1.0 -2.1 5.7 .3 -.3 .3 -.2 .0 .1 -.1 116.8 13 Excluding energy 1.1 1.4 -.3 4.7 .0 .6 .R .ff .2 .0 .0 124.0 Crude materials 14 Foods 1.1 1.8 5.1 1.9 -1.9 12.6 -3.4r 1.3r 1.6 .1 -1.5 105.6 15 Energy 2.9 -5.2 -17.8 -10.1 17.5 -26.5 -.5r -4.6r -1.8 -1.2 4.9 78.6 16 Other 2.7 8.9 1.9 24.3 11.5 -8.5 .R ,4r -2.6 .0 .9 139.6 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, 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 11999900 11999911 11999922 Q3 Q4 Ql Q2 Q3 GROSS DOMESTIC PRODUCT 1 Total 5,546.1 5,722.9 6,038.5 6,059.5 6,194.4 6,261.6 6,327.6 6,396.3 By source 2 Personal consumption expenditures 3,761.2 3,906.4 4,139.9 4,157.1 4,256.2 4,2%.2 4,359.9 4.418.2 3 Durable goods 468.2 457.8 497.3 500.9 516.6 515.3 531.6 542.0 4 Nondurable goods 1,229.2 1,257.9 1,300.9 1,305.7 1,331.7 1,335.3 1,344.8 1,351.9 5 Services 2,063.8 2,190.7 2,341.6 2,350.5 2,407.9 2,445.5 2,483.4 2.524.3 6 Gross private domestic investment 808.9 736.9 796.5 802.2 833.3 874.1 874.1 882.5 7 Fixed investment 802.0 745.5 789.1 792.5 821.3 839.5 861.0 874.3 8 Nonresidential 586.7 555.9 565.5 569.2 579.5 594.7 619.1 623.6 9 Structures 201.6 182.6 172.6 170.8 171.1 172.4 177.6 178.9 10 Producers' durable equipment 385.1 373.3 392.9 398.4 408.3 422.2 441.6 444.7 11 Residential structures 215.3 189.6 223.6 223.3 241.8 244.9 241.9 250.7 12 Change in business inventories 6.9 -8.6 7.3 9.7 12.0 34.6 13.1 8.2 13 Nonfarm 3.8 -8.6 2.3 4.4 9.5 33.0 16.8 19.5 14 Net exports of goods and services -71.4 -19.6 -29.6 -38.8 -38.8 -48.3 -65.1 -65.2 15 Exports 557.1 601.5 640.5 641.1 654.7 651.3 660.0 654.9 16 Imports 628.5 621.1 670.1 679.9 693.5 699.6 725.0 720.0 17 Government purchases of goods and services .. 1,047.4 1,099.3 1,131.8 1,139.1 1,143.8 1,139.7 1,158.6 1,160.8 18 Federal 426.5 445.9 448.8 452.8 452.4 442.7 447.5 442.2 19 State and local 620.9 653.4 683.0 686.2 691.4 697.0 711.1 718.6 By major type of product 20 Final sales, total 5.539.3 5.731.6 6,031.2 6,049.9 6.182.5 6,227.1 6,314.5 6,388.1 21 Goods 2.178.4 2,227.0 2.305.5 2,308.6 2.365.6 2,362.9 2.395.0 2.408.0 22 Durable 933.6 934.3 975.8 978.4 1,008.3 1,003.5 1,037.8 1.040.1 23 Nondurable 1,244.8 1,292.8 1.329.6 1.330.2 1,357.3 1,359.3 1.357.1 1,367.8 24 Services 2.849.5 3.032.7 3,221.1 3.239.3 3,2%. 1 3,341.8 3,388.1 3,437.1 25 Structures 511.5 471.9 504.7 501.9 520.8 522.4 531.5 543.0 26 Change in business inventories 6.9 -8.6 7.3 9.7 12.0 34.6 13.1 8.2 27 Durable goods -2.1 -12.9 2.1 5.7 -1.2 15.0 2.7 7.5 28 Nondurable goods 9.0 4.3 5.3 4.0 13.2 19.5 10.4 .7 MEMO 4,897.3 4,861.4 4,986.3 4,998.2 5,068.3 5,078.2 5,102.1 5,138.0 29 Total GDP in 1987 dollars NATIONAL INCOME 4,491.0 4,598.3 4,836.6 4,800.8 4,975.8 5,038.9 5,104.0 n.a. 30 Total 3,297.6 3,402.4 3.582.0 3.603.6 3,658.6 3.705.1 3.750.6 3.792.8 31 Compensation of employees 2,745.0 2,814.9 2.953.1 2.970.7 3,015.8 3,054.3 3.082.7 3,114.3 32 Wages and salaries 516.0 545.3 567.5 569.7 574.2 584.1 586.3 593.4 33 Government and government enterprises .. 2,229.0 2,269.6 2,385.6 2,401.0 2,441.6 2.470.2 2,4%.3 2.520.9 34 Other 552.5 587.5 629.0 632.9 642.8 650.7 668.0 678.6 35 Supplement to wages and salaries 278.3 290.6 306.3 306.9 311.3 312.2 321.4 323.9 36 Employer contributions for social insurance 274.3 296.9 322.7 326.0 331.5 338.5 346.6 354.7 37 Other labor income 38 Proprietors' income1 363.3 376.4 414.3 408.1 431.2 444.1 439.4 423.3 39 Business and professional1 321.4 339.5 370.6 371.3 383.6 388.4 392.4 3%.2 40 Farm1 41.9 36.8 43.7 36.8 47.6 55.7 47.0 27.0 41 Rental income of persons2 -14.2 -12.8 -8.9 -18.5 -1.2 7.5 12.7 13.9 42 Corporate profits1 .. 380.6 369.5 407.2 367.5 439.5 432.1 458.1 n.a. 43 Profits before tax3 365.7 362.3 395.4 357.9 409.9 419.8 445.6 n.a. 44 Inventory valuation adjustment -11.0 4.9 -5.3 -7.8 4.9 -12.7 -12.2 .2 45 Capital consumption adjustment 25.9 2.2 17.1 17.4 24.7 25.1 24.7 23.6 46 Net interest 463.7 462.8 442.0 440.1 447.7 450.1 443.2 n.a. 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • January 1994 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1992 1993 11999900 11999911 11999922 Q3 Q4 Ql Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 4,673.8 4,850.9 5,144.9 5,139.8 5,328.3 5,254.7 5,373.2 5,409.7 2 Wage and salary disbursements 2,745.0 2,815.0 2,973.1 2,970.7 3,095.8 2,974.3 3,082.7 3,114.3 3 Commodity-producing industries 745.7 738.1 756.5 751.6 783.3 740.7 765.1 769.5 4 Manufacturing 555.6 557.2 577.6 573.3 602.0 559.7 580.3 581.5 5 Distributive industries 635.1 648.0 682.0 682.5 709.9 682.9 709.1 714.8 6 Service industries 848.3 883.5 967.0 966.8 1,028.4 966.6 1,022.2 1,036.6 7 Government and government enterprises 515.9 545.4 567.5 569.7 574.2 584.1 586.3 593.4 8 Other labor income 274.3 296.9 322.7 326.0 331.5 338.5 346.6 354.7 9 Proprietors' income 363.3 376.4 414.3 408.1 431.2 444.1 439.4 423.3 10 Business and professional 321.4 339.5 370.6 371.3 383.6 388.4 392.4 396.2 11 Farm1 41.9 36.8 43.7 36.8 47.6 55.7 47.0 27.0 12 Rental income of persons2 -14.2 -12.8 -8.9 -18.5 -1.2 7.5 12.7 13.9 13 Dividends 144.4 127.9 140.4 144.9 152.3 157.0 157.8 159.0 14 Personal interest income 698.2 715.6 694.3 692.2 694.5 695.4 693.1 694.2 15 Transfer payments 687.6 769.9 858.4 866.1 877.4 894.4 905.5 917.2 16 Old-age survivors, disability, and health insurance benefits ... 352.0 382.3 413.9 416.6 420.8 433.1 435.0 438.8 17 LESS: Personal contributions for social insurance 224.9 237.8 249.3 249.8 253.3 256.6 264.5 266.8 18 EQUALS: Personal income 4,673.8 4,850.9 5,144.9 5,139.8 5,328.3 5,254.7 5,373.2 5,409.7 19 LESS: Personal tax and nontax payments 623.3 620.4 644.8 642.8 670.7 657.1 681.0 690.2 20 EQUALS: Disposable personal income 4,050.5 4,230.5 4,500.2 4,497.0 4,657.6 4,597.5 4,692.2 4,719.5 21 LESS: Personal outlays 3,880.6 4,029.0 4,261.5 4,277.3 4,377.9 4,419.7 4,483.6 4,542.6 22 EQUALS: Personal saving 170.0 201.5 238.7 219.6 279.7 177.9 208.7 176.9 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,593.0 19,237.9 19,518.0 19.536.7 19,754.1 19,744.4 19,785.4 19,867.1 24 Personal consumption expenditures 13,093.0 12,895.2 13,080.9 13.097.8 13,240.9 13,234.2 13,311.6 13,409.3 25 Disposable personal income 14,101.0 13,965.0 14,219.0 14,169.0 14,490.0 14,163.0 14,326.0 14,324.0 26 Saving rate (percent) 4.2 4.8 5.3 4.9 6.0 3.9 4.4 3.7 GROSS SAVING 27 Gross saving 722.7 733.7 717.8 727.0 718.8 762.0 766.7 n.a. 28 Gross private saving 861.1 929.9 986.9 1,016.5 969.4 1,024.8 988.3 n.a. 29 Personal saving 170.0 201.5 238.7 219.6 279.7 177.9 208.7 176.9 30 Undistributed corporate profits1 88.5 102.3 110.4 82.3 121.7 103.7 116.3 n.a. 31 Corporate inventory valuation adjustment -11.0 4.9 -5.3 -7.8 4.9 -12.7 -12.2 .2 Capital consumption allowances 32 Corporate 368.2 383.2 3%. 6 410.3 396.5 402.2 405.2 414.1 33 Noncorporate 234.5 242.8 261.3 304.3 251.5 261.0 258.1 265.9 34 Government surplus, or deficit (-), national income and product accounts -138.4 -196.2 -269.1 -289.5 -250.6 -262.8 -221.5 n.a. 35 Federal -163.5 -203.4 -276.3 -290.7 -264.2 -263.5 -222.6 n.a. 36 State and local 25.1 7.3 7.2 1.2 13.5 .8 1.1 n.a. 37 Gross investment 730.4 743.3 741.4 742.7 750.9 796.5 778.7 786.6 38 Gross private domestic 808.9 736.9 7%. 5 802.2 833.3 874.1 874.1 882.5 39 Net foreign -78.5 6.4 -55.1 -59.4 -82.4 -77.6 -95.4 n.a. 40 Statistical discrepancy 7.8 9.6 23.6 15.7 32.1 34.4 12.0 n.a. 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1992 1993 IItteemm ccrreeddiittss oorr ddeebbiittss 11999900 11999911 11999922 Q2 Q3 Q4 Q1 Q2P 1 Balance on current account -91,861 -8,324 -66,400 -18,253 -17,775 -23,687 -22,308 -26,934 2 Merchandise trade balance -109,033 -73,802 -96,138 -24,801 -27,612 -25,962 -29,309 -34,388 3 Merchandise exports 389,303 416,937 440,138 108,306 109,493 113,992 111,530 113,125 4 Merchandise imports -498,336 -490,739 -536,276 -133,107 -137,105 -139,954 -140,839 -147,513 Military transactions, net -7,834 -5,851 -2,751 -727 -617 -836 -145 23 6 Other service transactions, net 38,485 51,733 59,163 14,378 15,898 14,265 14,769 14,772 7 Investment income, net 20,348 13,021 6,222 907 1,703 -806 -37 -275 8 U.S. government grants -17,434 24,073 -14,688 -3,234 -2,783 -5,883 -3,242 -2,578 9 U.S. government pensions and other transfers -2,934 -3,461 -3,735 -1,118 -940 -846 -978 -975 10 Private remittances and other transfers -13,459 -14,037 -14,473 -3,659 -3,424 -3,619 -3,366 -3,513 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,307 2,905 -1,609 -293 -305 -737 535 5555 12 Change in U.S. official reserve assets (increase, -) -2,158 5,763 3,901 1,464 1,952 1,542 -983 720 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -192 -177 2,316 -168 -173 2,829 -140 -166 15 Reserve position in International Monetary Fund 731 -367 -2,692 1 -118 -2,685 -228 211 16 Foreign currencies -2,697 6,307 4,277 1,631 2,243 1,398 -615 675 17 Change in U.S. private assets abroad (increase, -) -44,280 -68,643 -53,253 -9,866 -12,445 -31,243 -11,910 -26,203 18 Bank-reported claims3 16,027 3,278 24,948 4,050 6,584 -3,481 28,055 4,743 19 Nonbank-reported claims -4,433 1,932 4,551 1,294 -3,214 1,132 -4,774 20 U.S. purchases of foreign securities, net -28,765 -44,740 -47,961 -8,276 -13,787 -17,405 -26,889 -20,180 21 U.S. direct investments abroad, net -27,109 -29,113 -34,791 -6,934 -2,028 -11,489 -8,302 -10,766 27. Change in foreign official assets in United States (increase, +) ... 34,198 17,564 40,684 21,008 -7,378 5,931 10,929 17,839 23 U.S. Treasury securities 29,576 14,846 18,454 11,240 -323 -7,379 1,039 6,042 24 Other U.S. government obligations 667 1,301 3,949 1,699 912 874 710 1,082 7,5 Other U.S. government liabilities 2,156 1,542 2,542 678 864 943 -395 191 26 Other U.S. liabilities reported by U.S. banks3 3,385 -1,484 16,427 7,466 -7,831 11,219 8,171 9,425 27 Other foreign official assets -1,586 1,359 -688 -75 -1,000 274 1,404 1,099 28 Change in foreign private assets in United States (increase, +)... 70,976 65,875 88,895 23,442 33,828 32,914 14,789 20,453 29 U.S. bank-reported liabilities3 16,370 -11,371 18,609 -528 23,647 -1,171 -18,862 -2,462 30 U.S. nonbank-reported liabilities 7,533 -699 741 979 1,553 -2,717 2,057 31 Foreign private purchases of U.S. Treasury securities, net . -2,534 18,826 36,893 10,168 4,870 21,232 13,599 -411 32 Foreign purchases of other U.S. securities, net 1,592 35,144 30,274 10,453 2,730 12,478 9,394 15,000 33 Foreign direct investments in United States, net 48,015 23,975 2,378 2,370 1,028 3,092 8,601 8,326 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 35 Discrepancy 30,820 -15,140 -12,218 -17,502 2,123 15,280 8,948 14,070 36 Due to seasonal adjustment 653 -6,754 1,222 5,814 816 37 Before seasonal adjustment 30,820 -15,140 -12,218 -18,155 8,877 14,058 3,134 13,254 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -2,158 5,763 3,901 1,464 1,952 1,542 --998833 772200 39 Foreign official assets in United States, excluding line 25 (increase, +) 32,042 16,022 38,142 20,330 -8,242 4,988 11,324 17,648 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 1,707 -4,882 5,857 -2,113 3,051 2,336 463 --994400 1. Seasonal factors are 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 5. 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, Bureau of Economic Analysis, brokers and dealers. Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • January 1994 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1993 IItteemm 11999900 11999911 11999922 Mar. Apr. May June July Aug.r Sept.P 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 393,592 421,730 448,164 38,895 38,479 38,930 37,639 37,109 38,050 38,866 2 General imports including merchandise for immediate consumption plus entries into bonded warehouses 495,311 488,453 532,665 49,347 48,660 47,306 49,698 47,534 48,097 49,751 3 Trade balance -101,718 -66,723 -84,501 -10,453 -10,182 -8,376 -12,058 -10,425 -10,047 -10,886 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 through 4) primarily for reasons missions abroad for their own use, (3) U.S. goods returned to the United States by of 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. Since 1990, data for U.S. exports to Canada have been SOURCE. (U.S. Department of Commerce, Bureau of the Census), FT900, U.S. derived from import data compiled by Canada; similarly, in Canadian statistics, Merchandise Trade. 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 1993 AAsssseett 11999900 11999911 11999922 Apr. May June July Aug. Sept. Oct." 1 Total 83,316 77,719 71,323 75,644 76,711 73,968 74,139 75,231 75,835 74,550 2 Gold stock, including Exchange Stabilization Fund1 11,058 11,057 11,056 11,054 11,053 11,057 11,057 11,057 11,057 11,056 3 Special drawing rights '3 10,989 11,240 8,503 8,947 9,147 8,987 8,905 9,133 9,203 9,038 4 Reserve position in International Monetary Fund 9,076 9,488 11,759 12,317 12,195 11,926 12,083 12,118 12,101 11,908 5 Foreign currencies4 52,193 45,934 40,005 43,326 44,316 41,998 42,094 42,923 43,474 42,548 1. Gold held "under earmark" at Federal Reserve Banks for foreign and 1981, five currencies have been used. U.S. SDR holdings and reserve positions in international accounts is not included in the gold stock of the United States; see the IMF 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, sixteen currencies were used; since January 4. Valued at current market exchange rates. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1993 AAsssseett 11999900 11999911 11999922 Apr. May June July Aug. Sept. Oct." 1 Deposits 369 968 205 221 193 286 284 357 501 390 Held in custody 2 U.S. Treasury securities 278,499 281,107 314,481 339,3% 345,060 343,672 343,378 356,671 358,860 358,975 3 Earmarked gold3 13,387 13,303 13,686 12,924 12,854 12,829 12,756 12,686 12,562 12,464 1. Excludes deposits and U.S. Treasury securities held for international and 3. Held in foreign and international accounts and valued at $42.22 per fine troy regional organizations. 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 1993 AAccccoouunntt 11999900 11999911 11999922 Mar. Apr. May June July Aug. Sept. ASSETS All foreign countries 1 Total payable in any currency 556,925 548,999 542,545 547,425 544,497 548,893 562,590 551,342 560,539 556,176 2 Claims on United States 188,496 176,487 166,798 172,132 164,652 162,355 176,025 163,793 166,817 168,086 Parent bank 148,837 137,695 132,275 139,016 129,121 127,126 141,024 127,474 130,865 136,938 4 Other banks in United States 13,296 12,884 9,703 9,073 10,830 9,169 9,498 8,993 9,457 6,862 5 Nonbanks 26,363 25,908 24,820 24,043 24,701 26,060 25,503 27,326 26,495 24,286 6 Claims on foreigners 312,449 303,934 318,071 314,912 316,001 321,065 316,533 316,989 325,948 318,736 7 Other branches of parent bank 135,003 111,729 123,256 112,598 109,966 111,314 111,708 105,095 108,071 108,521 8 Banks 72,602 81,970 82,190 84,819 86,940 88,188 85,972 88,648 90,008 84,937 9 Public borrowers 17,555 18,652 20,756 19,005 18,577 18,251 18,183 17,687 18,364 17,797 10 Nonbank foreigners 87,289 91,583 91,869 98,490 100,518 103,312 100,670 105,559 109,505 107,481 11 Other assets 55,980 68,578 57,676 60,381 63,844 65,473 70,032 70,560 67,774 69,354 12 Total payable in U.S. dollars 379,479 364,078 365,824 353,799 345,053 344,926 355,298 340,948 338,8% 348,290 N Claims on United States 180,174 169,848 162,125 167,535 160,120 156,418 169,502 155,387 157,538 160,820 14 Parent bank 142,962 133,662 129,329 136,423 126,760 123,957 137,711 124,072 127,028 133,223 15 Other banks in United States 12,513 12,025 9,266 8,336 10,168 8,209 8,638 8,270 8,475 6,322 16 Nonbanks 24,699 24,161 23,530 22,776 23,192 24,252 23,153 23,045 22,035 21,275 17 Claims on foreigners 174,451 167,010 183,527 170,338 169,360 170,475 168,824 167,183 164,318 168,815 18 Other branches of parent bank 95,298 78,114 83,117 75,871 73,049 73,068 73,014 70,293 68,567 70,511 19 Banks 36,440 41,635 47,250 41,266 43,783 44,920 43,674 44,262 42,378 43,920 20 Public borrowers 12,298 13,685 14,313 13,068 12,537 12,244 12,049 11,951 11,999 11,580 21 Nonbank foreigners 30,415 33,576 38,847 40,133 39,991 40,243 40,087 40,677 41,374 42,804 22 Other assets 24,854 27,220 20,172 15,926 15,573 18,033 16,972 18,378 17,040 18,655 United Kingdom 23 Total payable in any currency 184,818 175,599 165,850 162,122 163,193 165,044 173,158 167,046 172,710 173,057 7,4 Claims on United States 45,560 35,257 36,403 34,989 33,353 31,239 37,038 34,032 35,491 34,053 25 Parent bank 42,413 31,931 33,460 31,719 29,605 27,523 33,059 29,184 30,612 30,776 26 Other banks in United States 792 1,267 1,298 892 757 747 1,006 808 877 631 27 Nonbanks 2,355 2,059 1,645 2,378 2,991 2,%9 2,973 4,040 4,002 2,646 28 Claims on foreigners 115,536 109,692 111,623 106,944 108,963 111,830 109,528 107,799 114,150 115,203 79 Other branches of parent bank 46,367 35,735 46,165 39,466 39,450 41,458 40,130 37,164 39,778 40,613 30 Banks 31,604 36,394 33,399 34,914 37,823 37,282 36,848 38,543 40,332 40,277 31 Public borrowers 3,860 3,306 3,329 2,531 2,513 2,420 2,342 2,341 2,606 2,171 32 Nonbank foreigners 33,705 34,257 28,730 30,033 29,177 30,670 30,208 29,751 31,434 32,142 33 Other assets 23,722 30,650 17,824 20,189 20,877 21,975 26,592 25,215 23,069 23,801 34 Total payable in U.S. dollars 116,762 105,974 109,493 94,870 95,612 97,431 100,422 96,200 93,739 97,841 35 Claims on United States 41,259 32,418 34,508 32,783 31,233 28,634 34,110 30,573 31,753 31,160 36 Parent bank 39,609 30,370 32,186 30,443 28,420 25,9% 31,265 27,580 28,938 29,130 37 Other banks in United States 334 822 1,022 413 393 326 533 300 308 328 38 Nonbanks 1,316 1,226 1,300 1,927 2,420 2,312 2,312 2,693 2,507 1,702 39 Claims on foreigners 63,701 58,791 66,335 57,530 60,180 61,742 60,479 58,944 56,603 59,725 40 Other branches of parent bank 37,142 28,667 34,124 30,017 29,388 30,753 30,287 27,814 27,713 28,306 41 Banks 13,135 15,219 17,089 13,422 16,903 17,073 16,658 17,590 15,466 17,%7 42 Public borrowers 3,143 2,853 2,349 1,949 1,888 1,808 1,804 1,744 1,832 1,614 43 Nonbank foreigners 10,281 12,052 12,773 12,142 12,001 12,108 11,730 11,7% 11,592 11,838 44 Other assets 11,802 14,765 8,650 4,557 4,637 7,055 5,833 6,683 5,383 6,956 Bahamas and Cayman Islands 45 Total payable in any currency 162,316 168,512 147,422 149,461r 144,654r 142,872r 148,982r 140,580r 140,172 147,385 46 Claims on United States 112,989 115,430 %,280 101,267r 97.4691 94,894r 102,109r 93,736r 93,661 98,873 47 Parent bank 77,873 81,706 66,608 73,421r 67,830r 66,170"^ 74,023r 66,363r 67,055 74,040 48 Other banks in United States 11,869 10,907 7,828 7,424 9,279 7,184 7,651 7,477 7,360 5,489 49 Nonbanks 23,247 22,817 21,844 20,422 20,360 21,540 20,435 19,8% 19,246 19,344 50 Claims on foreigners 41,356 45,229 44,509 41,328r 40,5% 41,378 40,437 39,609 39,588 41,814 51 Other branches of parent bank 13,416 11,098 7,293 6,650 6,873 6,999 7,009 6,772 7,226 8,958 57 Banks 16,310 20,174 21,212 18,811r 17,816 18,527 18,117 17,688 16,863 17,090 53 Public borrowers 5,807 7,161 7,786 7,188 6,690 6,527 6,334 6,185 6,102 5,955 54 Nonbank foreigners 5,823 6,7% 8,218 8,679 9,217 9,325 8,977 8,964 9,397 9,811 55 Other assets 7,971 7,853 6,633 6,866 6,589 6,600 6,436 7,235 6,923 6,698 56 Total payable in U.S. dollars 158,390 163,957 142,861 145,221r 140,146r 138,202r 143,900r 136,025r 135,698 142,831 1. Since June 1984, reported claims held by foreign branches have been million to $150 million equivalent in total assets, the threshold now applicable to reduced by an increase in the reporting threshold for "shell" branches from $50 all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • January 1994 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1—Continued 1993 Mar. Apr. May June July Aug. Sept. LIABILITIES All foreign countries 57 Total payable in any currency 556,925 548,999 542,545 547,425 544,497 548,893 562,590 551,342 560,539 556,176 58 Negotiable certificates of deposit (CDs) .. 18,060 16,284 10,032 11,596 13,748 14,348 14,154 14,568 14,604 12,666 59 To United States 189,412 198,307 189,444 187,572 176,747 175,442 186,374 174,089 172,074 180,247 60 Parent bank 138,748 136,431 134,339 126,134 119,752 117,207 129,486 120,953 118,724 121,821 61 Other banks in United States 7,463 13,260 12,182 13,306 11,952 14,062 13,514 10,440 9,561 11,662 62 Nonbanks 43,201 48,616 42,923 48,132 45,043 44,173 43,374 42,696 43,789 46,764 63 To foreigners 311,668 288,254 309,704 312,417 316,661 322,140 318,956 319,464 333,015 322,146 64 Other branches of parent bank 139,113 112,033 125,160 115,535 113,845 115,189 115,725 108,925 113,550 111,731 65 Banks 58,986 63,097 62,189 68,411 68,381 69,323 67,243 71,491 73,663 68,100 66 Official institutions 14,791 15,596 19,731 18,312 21,326 22,271 22,466 23,147 23,049 22,698 67 Nonbank foreigners 98,778 97,528 102,624 110,159 113,109 115,357 113,522 115,901 122,753 119,617 68 Other liabilities 37,785 46,154 33,365 35,840 37,341 36,963 43,106 43,221 40,846 41,117 69 Total payable in U.S. dollars 383,522 370,710 368,773 353,840 344,532 344,319 357,116 342,287 339,344 347,387 70 Negotiable CDs 14,094 11,909 6,238 6,519 7,062 7,248 8,138 7,958 7,370 6,131 71 To United States 175,654 185,472 178,674 175,763 164,380 162,328 172,708 160,499 157,841 167,272 72 Parent bank 130,510 129,669 127,948 119,524 112,736 110,161 121,922 113,313 110,881 114,170 73 Other banks in United States 6,052 11,707 11,512 12,467 11,282 13,126 12,862 9,789 8,842 11,092 74 Nonbanks 39,092 44,096 39,214 43,772 40,362 39,041 37,924 37,397 38,118 42,010 75 To foreigners 179,002 158,993 172,189 160,774 163,149 165,162 166,130 163,567 165,055 163,701 76 Other branches of parent bank 98,128 76,601 83,700 77,685 75,682 75,313 75,783 72,900 72,467 72,358 77 Banks 20,251 24,156 26,118 21,227 22,150 22,969 23,440 23,631 24,522 23,799 78 Official institutions 7,921 10,304 12,430 10,762 12,627 12,653 12,951 12,868 12,031 10,720 79 Nonbank foreigners 52,702 47,932 49,941 51,100 52,690 54,227 53,956 54,168 56,035 56,824 80 Other liabilities 14,772 14,336 11,672 10,784 9,941 9,581 10,140 10,263 9,078 10,283 United Kingdom 81 Total payable in any currency 184,818 175,599 165,850 162,122 163,193 165,044 173,158 167,046 172,710 173,057 82 Negotiable CDs 14,256 11,333 4,517 4,753 5,414 5,644 6,566 6,364 6,674 5,318 83 To United States 39,928 37,720 39,174 38,011 34,661 37,272 39,514 35,521 36,600 37,180 84 Parent bank 31,806 29,834 31,100 29,759 26,781 28,095 30,410 27,183 28,076 29,217 85 Other banks in United States 1,505 1,438 1,065 1,192 1,110 1,652 1,097 850 741 682 86 Nonbanks 6,617 6,448 7,009 7,060 6,770 7,525 8,007 7,488 7,783 7,281 87 To foreigners 108,531 98,167 107,176 104,356 108,670 106,834 106,725 105,949 112,121 112,534 88 Other branches of parent bank 36,709 30,054 35,983 33,424 33,545 31,437 32,275 28,408 30,534 31,578 89 Banks 25,126 25,541 25,231 23,985 26,082 27,184 25,848 28,504 29,039 28,064 90 Official institutions 8,361 9,670 12,090 10,531 12,342 11,752 12,139 11,885 11,575 12,425 91 Nonbank foreigners 38,335 32,902 33,872 36,416 36,701 36,461 36,463 37,152 40,973 40,467 92 Other liabilities 22,103 28,379 14,983 15,002 14,448 15,294 20,353 19,212 17,315 18,025 93 Total payable in U.S. dollars 116,094 108,755 108,214 95,892 94,159 96,152 98,465 93,360 92,066 94,697 94 Negotiable CDs 12,710 10,076 3,894 3,765 4,214 4,392 5,462 5,197 4,890 3,728 95 To United States 34,697 33,003 35,417 33,552 30,170 32,457 34,523 30,669 31,579 32,838 % Parent bank 29,955 28,260 29,957 28,405 25,315 26,631 28,747 25,753 26,600 28,039 97 Other banks in United States 1,156 1,177 709 707 676 1,311 847 637 476 397 98 Nonbanks 3,586 3,566 4,751 4,440 4,179 4,515 4,929 4,279 4,503 4,402 99 To foreigners 60,014 56,626 62,048 51,850 54,407 54,576 53,282 52,336 51,256 52,608 100 Other branches of parent bank 25,957 20,800 22,026 19,516 18,958 17,449 17,691 16,198 16,063 16,859 101 Banks 9,488 11,069 12,540 6,702 8,327 9,065 8,305 8,347 7,666 8,877 102 Official institutions 4,692 7,156 8,847 7,008 8,803 8,210 8,812 8,720 8,042 7,195 103 Nonbank foreigners 19,877 17,601 18,635 18,624 18,319 19,852 18,474 19,071 19,485 19,677 104 Other liabilities 8,673 9,050 6,855 6,725 5,368 4,727 5,198 5,158 4,341 5,523 Bahamas and Cayman Islands 105 Total payable in any currency 162,316 168,512 147,422 149,461' 144,654' 142,872' 148,982' 140,580' 140,172 147,385 106 Negotiable CDs 646 1,173 1,350 1,713 1,692 1,812 1,535 1,562 1,307 1,315 107 To United States 114,738 130,058 111,861 110,885r 106,575r 102,825' 109,238' 101,036' 99,418 108,107 108 Parent bank 74,941 79,394 67,347 60,152 60,033 57,132' 64,608' 59,352' 58,031 60,407 109 Other banks in United States 4,526 10,231 10,445 11,492 10,291 11,220 11,567 8,603 7,791 10,146 110 Nonbanks 35,271 40,433 34,069 39,241r 36,251' 34,473' 33,063' 33,081' 33,5% 37,554 111 To foreigners 44,444 35,200 32,556 35,469' 34,888' 36,220' 36,621' 35,973' 37,808 36,449 112 Other branches of parent bank 24,715 17,388 15,169 18,048r N.SOC 18,652' 18,944' 18,164' 19,103 18,609 113 Banks 5,588 5,662 6,422 6,518r 6,288' 6,159' 6,417' 6,9%' 7,766 6,347 114 Official institutions 622 572 805 867' 913' 1,064' 1,031' 902' 836 881 115 Nonbank foreigners 13,519 11,578 10,160 10,036r 10,187 10,345 10,229 9,911 10,103 10,612 116 Other liabilities 2,488 2,081 1,655 1,394 1,499 2,015 1,588 2,009 1,639 1,514 117 Total payable in U.S. dollars 157,132 163,789 143,150 144,810*" 139,536' 137,847' 144,014' 135,893' 135,483 142,449 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 1993 IItteemm 11999911 11999922 Mar. Apr. May June Julyr Aug.r Sept.p 1 Total1 360,530 398,672 410,078 413,661r 424,298 427,380r 426,726 436,676 445,703 By type 2 Liabilities reported by banks in the United States 38,396 54,823 63,079 62,814 69,199 72,533r 67,154 68,534 70,320 3 U.S. Treasury bills and certificates3 92,692 104,596 113,547 113,293 120,194 119,860 128,837 136,488 139,342 U.S. Treasury bonds and notes 4 Marketable 203,677 210,553 202,593 205,302 201,878 201,118 196,238 196,962 200,352 5 Nonmarketable 4,858 4,532 4,622 5,432r 5,417 5,451 5,488 5,508 5,542 6 U.S. securities other than U.S. Treasury securities 20,907 24,168 26,237 26,820 27,610 28,418 29,009 29,184 30,147 By area 7 Europe 171,317 191,708 189,804 187,899 193,673 193,378 188,930 191,840 198,013 8 Canada 7,460 7,920 9,326 8,302 8,899 8,297 8,808 8,075 8,260 9 Latin America and Caribbean 33,554 40,015 44,464 49,146r 48,130 48,524 53,764 55,327 54,678 10 Asia 139,465 152,142 158,017 159,860 164,947 169,370" 168,859 174,671 177,441 11 Africa 2,092 3,565 3,919 3,782 3,782 3,621 2,844 3,109 3,888 12 Other countries6 6,640 3,320 4,546 4,670 4,865 4,188 3,519 3,652 3,421 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 Sept. Dec. Mar. June 1 Banks' liabilities 67,835 70,477 75,129 84,162 72,7% 80,999 74,697 2 Banks' claims 65,127 66,796 73,195 72,165 62,789 64,057 55,161 3 Deposits 20,491 29,672 26,192 28,074 24,240 24,928 23,449 4 Other claims 44,636 37,124 47,003 44,091 38,549 39,129 31,712 5 Claims of banks' domestic customers2 3,507 6,309 3,398 3,987 4,432 2,625 3,234 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 • January 1994 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1993 IItteemm 11999900 11999911 11999922 Mar. Apr. May June July Aug." Sept.p HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 759,634 756,066 811,371 799,660 792,760 793,584 821,035r 817,600" 842,673 857,894 2 Banks' own liabilities 577,229 575,374 607,556 587,716 582,931 574,822 597,715r 588,994" 606,405 614,084 3 Demand deposits 21,723 20,321 21,824 21,572 22,243 22,144 21,467 21,815 21,501 25,444 4 Time deposits 168,017 159,649 160,476 143,996 148,064 147,923 152,169" 151,393" 153,119 153,618 5 Other3 65,822 66,305 93,824 97,128 101,148 104,513 107,394r 106,590" 116,141 112,716 6 Own foreign offices4 321,667 329,099 331,432 325,020 311,476 300,242 316,685r 309,1%" 315,644 322,306 7 Banks' custodial liabilities5 182,405 180,692 203,815 211,944 209,829 218,762 223,320 228,606" 236,268 243,810 8 U.S. Treasury bills and certificates6 96,796 110,734 127,644 137,059 138,014 144,129 144,059 153,359" 161,654 165,388 9 Other negotiable and readily transferable instruments7 17,578 18,664 21,974 22,303 21,539 24,515 30,056 26,477" 27,459 30,462 10 Other 68,031 51,294 54,197 52,582 50,276 50,118 49,205 48,770 47,155 47,960 11 Nonmonetary international and regional organizations 5,918 8,981 9,350 9,295 10,731 8,934 99,,333300"" 9,387 12,265 11,095 12 Banks' own liabilities 4,540 6,827 6,951 6,037 5,834 6,481 6,270" 6,197 8,571 7,681 13 Demand deposits 36 43 46 196 33 35 19 29 37 21 14 Time deposits 1,050 2,714 3,214 2,722 1,687 2,989 3,607r 2,920 2,882 4,199 15 Other3 3,455 4,070 3,691 3,119 4,114 3,457 2,644 3,248 5,652 3,461 16 Banks' custodial liabilities5 1,378 2,154 2,399 3,258 4,897 2,453 3,060 3,190 3,694 3,414 17 U.S. Treasury bills and certificates6 364 1,730 1,908 2,876 4,461 1,883 2,320 2,635 3,418 3,199 18 Other negotiable and readily transferable instruments7 1,014 424 486 382 433 564 740 549 276 215 19 Other 0 0 5 0 3 6 0 6 0 0 20 Official institutions9 119,303 131,088 159,419 176,626 176,107 189,393 192,393" 195,991" 205,022 209,662 21 Banks' own liabilities 34,910 34,411 51,058 59,576 59,393 63,575 62,791" 61,752" 61,962 63,719 22 Demand deposits 1,924 2,626 1,274 1,457 1,361 1,386 2,204 1,557" 1,294 1,951 23 Time deposits 14,359 16,504 17,823 18,814 19,166 21,682 19,408 18,626 17,800 20,370 24 Other3 18,628 15,281 31,961 39,305 38,866 40,507 41,179" 41,569 42,868 41,398 25 Banks' custodial liabilities5 84,393 96,677 108,361 117,050 116,714 125,818 129,602 134,239" 143,060 145,943 26 U.S. Treasury bills and certificates 79,424 92,692 104,596 113,547 113,293 120,194 119,860 128,837" 136,488 139,342 27 Other negotiable and readily transferable instruments7 4,766 3,879 3,726 3,411 3,284 5,480 9,602 5,297 6,514 6,149 28 Other 203 106 39 92 137 144 140 105 58 452 29 Banks10 540,805 522,265 547,988 521,961 512,921 503,421 525,237" 517,363" 528,540 540,761 30 Banks' own liabilities 458,470 459,335 476,785 452,894 446,694 436,547 459,341" 450,359" 462,787 469,805 31 Unaffiliated foreign banks 136,802 130,236 145,353 127,874 135,218 136,305 142,656" 141,163" 147,143 147,499 32 Demand deposits 10,053 8,648 10,168 10,485 10,883 11,386 9,918 10,675" 10,476 12,858 33 Time deposits 88,541 82,857 90,368 74,331 79,592 76,439 83,143 84,751 86,192 83,109 34 Other. 38,208 38,731 44,817 43,058 44,743 48,480 49,595" 45,737 50,475 51,532 35 Own foreign offices4 321,667 329,099 331,432 325,020 311,476 300,242 316,685" 309,1%" 315,644 322,306 36 Banks' custodial liabilities5 82,335 62,930 71,203 69,067 66,227 66,874 65,896 67,004 65,753 70,956 37 U.S. Treasury bills and certificates6 10,669 7,471 11,087 9,976 9,908 10,837 10,546 10,627 11,327 1122,,009900 38 Other negotiable and readily transferable instruments7 5,341 5,694 7,555 7,946 7,349 7,397 7,741 9,049 8,760 12,688 39 Other 66,325 49,765 52,561 51,145 48,970 48,640 47,609 47,328 45,666 46,178 40 Other foreigners 93,608 93,732 94,614 91,778 93,001 91,836 94,075" 94,859" %,846 %,376 41 Banks' own liabilities 79,309 74,801 72,762 69,209 71,010 68,219 69,313" 70,686" 73,085 72,879 42 Demand deposits 9,711 9,004 10,336 9,434 9,966 9,337 9,326 9,554 9,694 10,614 43 Time deposits 64,067 57,574 49,071 48,129 47,619 46,813 46,011" 45,096" 46,245 45,940 44 Other3. 5,530 8,223 13,355 11,646 13,425 12,069 13,976" 16,036" 17,146 16,325 45 Banks' custodial liabilities5 14,299 18,931 21,852 22,569 21,991 23,617 24,762 24,173" 23,761 23,497 46 U.S. Treasury bills and certificates6 6,339 8,841 10,053 10,660 10,352 11,215 11,333 11,260 10,421 10,757 47 Other negotiable and readily transferable instruments7 6,457 8,667 10,207 10,564 10,473 11,074 11,973 11,582" 11,909 11,410 48 Other 1,503 1,423 1,592 1,345 1,166 1,328 1,456 1,331 1,431 1,330 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 7,073 7,456 9,111 9,545 9,409 9,582 10,388 9,389 9,481 11,264 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 owed 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 owed to head office or parent International Settlements. foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of 10. Excludes central banks, which are included in "Official institutions." head office 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 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued Item 1991 Mar. Apr. May June July Aug. AREA 1 Total, all foreigners 759,634 756,066 811,371 799,660 792,760 793,584 821,035r 817,600" 842,673" 2 Foreign countries 753,716 747,085 802,021 790,365 782,029 784,650 811,705r 808,213r 830,408" 3 Europe 254,452 249,097 308,423 293,374 298,984 313,834 324,229" 320,954" 335,490" 1 1 1 1 1 1 1 1 1 4 5 6 7 8 9 7 8 2 3 5 6 4 1 0 A B I G D S S F N N S F R G P t w w i p a o r e u u e e o e r n a l l a r e s r n s t r e i y g l n t m i h t t e s w a m d u n i r z c i c e u n i e g a a e a e a a e r m d n a n r y l r l a l y k a n a n d n d s d Luxembourg 3 3 1 1 7 2 6 0 5 2 7 1 2 1 7 1 , , , , , , , , , , , , 3 4 6 9 2 3 5 3 9 9 8 7 3 6 1 5 8 8 2 9 4 4 5 3 3 5 3 9 0 1 7 5 2 9 0 6 4 0 4 7 8 5 9 2 9 3 3 1 1 1 8 7 2 7 1 2 1 1 3 3 1 1 , , , , , , , , , , , , 1 6 2 2 1 8 7 3 1 8 5 3 9 2 3 2 6 3 1 8 0 3 9 6 6 4 9 4 3 4 2 1 8 9 4 8 7 6 3 5 1 1 1 7 1 2 4 3 1 1 0 9 1 7 3 9 2 3 2 8 1 0 1 , , , , , , , , , , , , , 5 3 3 4 4 7 9 0 4 6 6 0 9 5 2 7 7 1 4 5 9 8 6 6 3 1 4 1 7 9 2 1 2 9 0 9 6 6 0 5 1 1 3 7 9 3 3 1 1 1 1 2 9 1 2 8 2 9 1 6 5 1 1 1 , , , , , , , , , , , , , 3 5 7 8 4 2 4 2 7 0 7 4 5 6 5 5 7 9 1 8 8 9 5 6 6 3 0 3 1 3 0 5 6 2 9 9 7 6 9 3 5 9 6 9 5 3 3 1 1 1 1 2 1 9 2 8 2 3 9 1 9 1 1 4 , , , , , , , , , , , , , 3 0 0 7 7 2 4 1 4 9 7 7 5 2 0 7 9 8 5 0 6 7 4 1 9 0 4 2 5 2 5 4 7 5 3 5 6 9 2 7 2 2 6 5 9 2 4 3 2 1 1 1 9 2 1 3 3 2 2 2 2 1 3 3 , , , , , , , , , , , , , 7 6 0 0 9 8 4 6 1 1 5 9 8 5 8 7 9 9 5 8 2 6 7 4 8 0 2 5 4 8 5 0 9 9 9 5 4 4 0 5 3 5 9 7 8 4 2 2 3 1 1 1 1 1 2 2 2 3 3 2 2 1 0 1 5 1 , , , , , , , , , , , , , , 2 8 7 8 3 7 0 7 5 8 4 2 4 1 4 1 7 5 4 3 4 8 6 8 0 1 7 8 2 % 7 0 2 0 6 4 8 4 0 2 9 1 4 9 4 2 2 3 1 1 1 0 2 2 4 0 2 2 3 3 0 0 6 1 1 1 , , , , , , , , , , , , , , , 4 7 4 2 8 8 8 4 9 9 7 4 0 5 4 9 6 9 5 0 9 1 7 6 0 2 8 7 1 9 5 4 6 8 7 5 0 4 3 3 1 3 8 5 3 " " 2 4 2 3 1 1 1 2 2 0 3 3 2 2 6 3 0 1 1 1 1 7 , , , , , , , , , , , , , , , 1 3 8 2 9 2 9 0 8 0 6 4 1 1 4 9 4 5 2 3 5 5 8 1 2 1 2 2 5 6 9 5 4 4 5 9 3 3 7 2 5 4 6 7 0 " " " " " " " " 2 2 2 1 0 1 2 9 U O Y Tu u n th r g i k e t o e r e s d y l E a v u K i r a i o 1 n 1 p g e d o a m nd former U.S.S.R. . 1 1 0 1 3 9 , , ,5 2 1 9 5 3 6 2 5 4 9 8 10 1 0 1 2 , , , 2 6 5 7 9 2 9 4 2 2 8 1 1 2 1 2 9 2 , , , 6 2 4 5 6 5 5 0 6 6 6 4 1 2 0 2 8 6 , , , 5 2 3 5 0 2 9 2 7 0 4 3 1 2 0 7 2 9 , , , 6 6 5 5 6 9 5 0 4 3 3 7 1 3 0 1 2 6 , , , 7 3 6 5 6 0 3 1 1 3 8 0 1 3 1 2 2 5 , , , 4 1 5 2 9 7 1 5 7 7 2 1 r r 1 2 1 2 8 3 , , , 2 8 1 5 4 7 8 0 5 2 1 1 " " 1 3 1 2 3 8 , , , 6 0 7 5 9 1 9 1 5 3 8 1 " " 23 Canada 20,349 21,605 22,746 25,045 22,303 21,331 20,051 22,264 23,917" 24 Latin America and Caribbean 332,997 345,529 317,236 319,872 317,876 303,630 312,692r 311,963" 312,818" 25 Argentina 7,365 7,753 9,477 11,569 11,066 11,339 11,289 14,120 14,579 26 Bahamas 107,386 100,622 82,288 83,633 81,763 80,333 80,715r 73,414" 73,790" 27 Bermuda 2,822 3,178 7.079 6,271 6,135 5,297 6,074 6,969 6,931" 28 Brazil 5,834 5,704 5,584 5,462 5,466 5,339 4,936 5,425 5,299 29 British West Indies 147,321 163,620 153,035 152,448 148,628 138,9% 147,753 147,618 145,988" 30 Chile 3,145 3,283 3,035 3,325 3,480 3,520 3,552 3,934 3,5% 31 Colombia 4,492 4,661 4,580 4,183 4,360 4,338 4,405 4,464 4,383 32 Cuba 11 2 3 3 2 2 3 5 5 33 Ecuador 1,379 1,232 993 931 923 956 924 889 860 34 Guatemala 1,541 1,594 1,377 1,382 1,352 1,323 1,397 1,304 1,315 35 Jamaica 257 231 371 309 293 289 341 341 364 36 Mexico 16,650 19,957 19,456 21,762 24,8% 23,351 22,296r 24,117" 24,813 37 Netherlands Antilles 7,357 5,592 5,205 4,222 4,537 3,813 4,059 4,159" 5,413" 38 Panama 4,574 4,695 4,177 3,918 4,135 4,054 3,747 3,657 39 Peru 1,294 1,249 1.080 995 1,070 977 979 891 898 40 Uruguay 2,520 2,096 1,955 1,815 1,775 1,742 1,775 1,775 1,822 41 Venezuela 12,271 13,181 11,387 11,452 11,517 11,644 12,242 12,373 12,782 42 Other 6,779 6,879 6,154 6,192 6,478 6,317 6,203 6,418 6,323" 43 Asia 136,844 120,462 143,561 140,519 131,117 134,032 143,229r 143,117" 147,563" China 44 People's Republic of China 2,421 2,626 3,202 2,957 3,527 3,008 2,885 2,728 3,292 45 Republic of China (Taiwan) 11,246 11,491 8,379 9,042 8,884 8,790 9,618r 9,991" 9,476" 4 4 6 7 H In o d n ia g Kong 12 1 , , 7 2 5 3 4 3 1 2 4 , , 4 2 1 6 8 9 18 1 , , 5 3 0 9 9 6 17 1 , , 0 3 4 9 1 9 16,3 9 5 8 3 9 15 1 , , 8 3 3 4 2 1 1 l 5 , , 3 8 1 9 5 0 r r 16 1 , , 1 0 9 5 3 3 " " 15 1 , , 6 2 2 1 1 1" " 48 Indonesia 1,238 1.463 1,480 1,871 1,464 1,861 2,132 1,688 1,582 4 5 5 5 5 5 5 9 3 1 2 4 5 0 T I O J P M K s a h h t r o p i h i a a d r l a e e i i e d n l p r l a a l e p n ( i d n S E e o a s u s t t e h r ) n oil-exporting countries 6 1 1 7 2 2 5 1 6 1 , , , , . , , 7 0 2 8 4 9 5 6 7 8 4 2 6 8 7 6 7 3 9 5 5 4 1 1 2 2 7 2 2 5 6 , , , , , , , 0 2 0 4 5 7 0 1 5 6 5 4 7 8 5 2 9 2 9 1 7 2 5 1 1 3 2 5 8 3 5 , , , , , , , 7 5 4 2 3 4 7 7 8 4 3 7 1 6 5 2 6 7 5 4 6 5 1 1 5 3 2 7 3 9 6 , , , , , , , 3 9 7 0 3 7 0 4 3 7 1 1 9 3 2 2 4 4 8 9 0 5 1 1 4 3 1 3 2 9 3 , , , , , , , 9 7 2 5 7 6 9 6 6 0 8 8 8 0 5 7 4 4 5 7 8 5 1 1 3 5 4 3 2 9 4 , , , , , , , 1 3 4 9 4 2 5 6 7 6 7 2 5 4 3 7 2 2 2 8 6 6 2 1 2 2 2 5 0 3 3 , , , , , , , 7 7 9 2 3 8 5 6 8 3 3 4 2 0 4 4 3 3 2 7 6 r 6 1 1 2 2 4 5 3 8 4 , , , , , , , 7 2 2 4 8 7 1 0 9 2 9 3 1 % 9 0 6 8 0 5 " 6 1 1 8 2 6 2 3 9 3 , , , , , , , 0 7 0 6 1 8 8 5 2 4 5 4 7 8 2 9 1 8 8 3 0 " " " 56 Africa 4,630 4,825 5,884 6,508 6,441 6,477 6,475r 5,680" 5,649" 5 5 7 8 E M g o y r p o t c co 1,4 1 2 0 5 4 1,62 7 1 9 2,47 7 2 6 3,08 8 4 7 2,9 1 3 5 8 1 2,9 1 2 4 2 4 2,7 1 8 1 4 9 " 1,8 1 8 3 0 8 " 2,01 7 8 8 " 59 South Africa 228 228 190 243 246 198 265 172 233 60 Zaire 53 31 19 13 14 16 15 25 20 61 Oil-exporting countries 1,110 1,082 1,346 1,239 1,294 1,368 1,332 1,417 1,279 62 Other 1,710 1,784 1,781 1,842 1,798 1,829 1,960 2,048 2,021 63 Other 4.444 5,567 4,171 5,047 5,308 5,346 5,029 4,235 4,971" 64 Australia 3,807 4.464 3,047 4,013 4,056 4,449 4,078 3,253 3,890" 65 Other 637 1,103 1,124 1,034 1,252 897 951 982 1,081 66 Nonmonetary international and regional 67 Int o e r r g n a a n t i i z o a n t a io l1 n 5 s 5 4, , 3 9 9 1 0 8 6 8 , , 4 9 8 8 5 1 9 7, , 4 3 3 5 4 0 6 9 , , 2 2 5 9 1 5 1 7 0 , , 5 7 9 3 0 1 5 8 , , 3 9 8 3 8 4 5 9 , , 8 3 1 3 2 0 r r 5 9 , , 8 3 2 8 8 7 1 8 2 , , 2 2 6 6 7 5 " " 68 Latin American regional 1,048 1,181 1,415 2,021 2,223 2,412 2,318 2,077 2,737 69 Other regional17 479 1,315 501 1,023 918 1,134 1,200 1,482 1,261 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 14. Comprises Algeria, Gabon, Libya, and Nigeria. 12. Includes the Bank for International Settlements and Eastern European 15. Principally the International Bank for Reconstruction and Development. countries not listed in line 23. Since December 1992, includes all parts of the Excludes "holdings of dollars" of the International Monetary Fund. former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. 17. Asian, African, Middle Eastern, and European regional organizations, 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and except the Bank for International Settlements, which is included in "Other United Arab Emirates (Trucial States). Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • January 1994 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 1993 AArreeaa aanndd ccoouunnttrryy 11999900 11999911 11999922 Mar. Apr. May June July Aug/ Sept.p 1 Total, all foreigners 511,543 514,339 500,511 477,782 471,288 461,179 482,944r 471,863r 461,064 477,457 2 Foreign countries 506,750 508,056 495,429 474,460 468,871 459,497 480,864r 470,556r 459,112 475,078 3 Europe 113,093 114,310 123,999 122,504 120,313 118,213 122,297r 124,429r 116,836 124,521 4 Austria 362 327 331 894 1,013 941 1,080 587 691 457 5 Belgium and Luxembourg 5,473 6,158 6,404 6,273 6,177 5,513 5,955 6,127 6,515 6,535 6 Denmark 497 686 707 682 645 628 721 835 693 631 7 Finland 1,047 1,907 1,419 1,010 998 885 1,225 1,007 705 599 8 France 14,468 15,112 14,803 13,235 13,141 11,614 ll,833r 11,847r 11,500 10,978 9 Germany 3,343 3,371 4,229 5,725 5,322 6,089 6,236 7,746 6,766 7,974 10 Greece 727 553 718 583 618 5% 564 509 508 629 11 Italy 6,052 8,242 9,048 8,418 8,724 8,218 9,250 8,053 8,839 8,976 1? Netherlands 1,761 2,546 2,472 2,676 2,607 3,278 2,764 3,260 3,081 3,443 13 Norway 782 669 356 645 714 676 789 823 941 841 14 Portugal 292 344 325 454 513 593 670 710 803 787 15 Russia 530 1,970 3,147 2,906 2,889 3,080 3,045 2,799 2,591 2,547 16 Spain 2,668 1,881 2,772 3,859 3,642 3,441 3,607 5,117 4,184 3,652 17 Sweden 2,094 2,335 4,929 4,809 4,509 4,229 4,062 5,131 4,278 4,619 18 Switzerland 4,202 4,540 4,722 4,348 4,361 4,735 4,123 5,193 5,634 5,216 19 Turkey 1,405 1,063 962 943 1,285 1,508 1,584 1,492 1,549 1,431 70 United Kiiwdom 65,151 60,395 63,928 62,241 60,725 59,703 62,565r 60,767r 55,118 62,764 21 Yugoslavia^ 1,142 825 569 553 551 550 548 547 547 542 22 Other Europe and former U.S.S.R.3 1,095 1,386 2,158 2,250 1,879 1,936 1,676 1,879 1,893 1,900 23 Canada 16,091 15,113 14,155 18,287 16,977 16,393 16,693 17,776 17,373 19,010 74 Latin America and Caribbean 231,506 246,137 218,133 205,7% 202,149 197,039 212,620"^ 208,231 207,483 215,547 7,5 Argentina 6,967 5,869 4,958 4,844 3,931 3,942 4,066 4,841r 4,740 4,719 76 Bahamas 76,525 87,138 60,868 59,018 59,418 56,188 59,979 56,833r 56,266 60,877 77 Bermuda 4,056 2,270 5,934 3,910 5,609 3,089 4,319 8,578 7,122 5,549 78 Brazil 17,995 11,894 10,774 10,871 10,815 10,710 12,319 10,842 10,927 11,300 79 British West Indies 88,565 107,846 101,523 93,896 88,975 89,853 97,306r 91,566 93,436 97,406 30 Chile 3,271 2,805 3,397 3,638 3,552 3,718 3,675 3,898 3,7% 3,827 31 Colombia 2,587 2,425 2,750 2,807 2,786 2,876 2,847 2,886 2,916 2,921 37 Cuba 0 0 0 0 0 0 1 0 0 0 33 Ecuador 1,387 1,053 884 819 807 770 771 732 739 701 34 Guatemala 191 228 262 274 269 256 266 240 256 259 35 Jamaica 238 158 162 168 161 165 184 182 181 189 36 Mexico 14,851 16,567 14,997 15,115 15,534 14,%7 15,279r 15,685 15,591 15,643 37 Netherlands Antilles 7,998 1,207 1,379 2,105 1,971 2,354 3,011 3,172 3,153 3,155 38 Panama 1,471 1,560 4,654 2,721 2,491 2,440 2,549 2,532 2,361 2,370 39 Peru 663 739 730 650 691 675 657 651 667 627 40 Uruguay 786 599 936 846 787 778 904 807 816 930 41 Venezuela 2,571 2,516 2,525 2,558 2,495 2,542 2,803 3,001 2,876 2,831 42 Other 1,384 1,263 1,400 1,556 1,857 1,716 1,684 1,785 1,640 2,243 43 138,722 125,262 131,857 120,213 122,414 120,983 122,134r 112,8%r 111,140 109,123 China 44 People's Republic of China 620 747 906 939 1,388 881 1,898 860 638 700 45 Republic of China (Taiwan) 1,952 2,087 2,046 1,630 1,670 1,561 1,840 1,549 1,585 1,593 46 Hong Kong 10,648 9,617 9,673 10,563 9,215 10,420 9,747 10,637 9,390 11,145 47 655 441 529 443 549 489 438 470 439 570 48 Indonesia 933 952 1,189 1,469 1,432 1,386 l,503r 1,282r 1,289 1,287 49 Israel 774 860 820 8% 1,057 814 777 733 775 747 50 Japan 90,699 84,807 79,189 67,887 71,681 71,908 71,327 62,501 64,837 60,364 51 Korea (South) 5,766 6,048 6,180 6,938 7,048 7,152 7,428r 7,587 7,245 7,092 57 Philippines 1,247 1,910 2,145 1,713 1,645 1,521 1,402 1,357 1,250 1,143 53 Thailand 1,573 1,713 1,867 1,678 1,794 1,763 1,865 2,006 2,018 2,146 54 Middle Eastern oil-exporting countries4 10,749 8,284 18,559 19,048 17,909 17,937 17,437 16,946 15,912 14,251 55 Other 13,106 7,796 8,754 7,009 7,026 5,151 6,472 6,968 5,762 8,085 56 5,445 4,928 4,279 3,907 3,767 3,661 3,812r 3,856r 3,902 4,023 57 Egypt 380 294 186 192 151 151 177 148 168 176 58 Morocco 513 575 441 396 396 420 416 437 443 454 59 South Africa 1,525 1,235 1,041 1,011 924 803 748r 742r 705 713 60 Zaire 16 4 4 3 3 3 3 4 4 3 61 Oil-exporting countries5 1,486 1,298 1,002 1,140 1,128 1,144 1,156 1,232 1,224 1,205 62 Other 1,525 1,522 1,605 1,165 1,165 1,140 1,312 1,293 1,358 1,472 63 Other 1,892 2,306 3,006 3,753 3,251 3,208 3,308 3,368 2,378 2,854 64 Australia 1,413 1,665 2,262 3,117 2,635 2,534 2,574 2,443 1,847 22,,444466 65 Other 479 641 744 636 616 674 734 925 531 440088 66 Nonmonetary international and regional organizations6 4,793 6,283 5,082 3,322 2,417 1,682 2,080 1,307 1,952 2,379 1. Reporting banks include all types of depository institutions, as well as some 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and brokers and dealers. United Arab Emirates (Trucial States). 2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 5. Comprises Algeria, Gabon, Libya, and Nigeria. 3. Includes the Bank for International Settlements and Eastern European 6. Excludes the Bank for International Settlements, which is included in countries not listed in line 23. Since December 1992, includes all parts of the "Other Western Europe." former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. 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 1993 CCllaaiimm 11999900 11999911 11999922 Mar. Apr. May Juner Julyr Aug/ Sept." 11 TToottaall 579,044 579,683 560,549 530,698 532,827 22 BBaannkkss'' ccllaaiimmss 511,543 514,339 500,511 477,782 471,288 461,179 482,944 471,863 461,064 477,457 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 41,900 37,126 31,376 33,722 30,390 29,601 29,409 32,579 30,284 31,919 44 OOwwnn ffoorreeiiggnn ooffffiicceess 304,315 318,800 304,623 294,513 287,119 282,587 298,972 280,120 274,979 286,232 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 117,272 116,602 109,643 97,041 97,747 94,727 93,965 92,865 93,936 96,229 66 DDeeppoossiittss 65,253 69,018 61,277 48,778 47,816 47,327 46,273 44,823 45,427 44,705 77 OOtthheerr 52,019 47,584 48,366 48,263 49,931 47,400 47,692 48,042 48,509 51,524 88 AAllll ootthheerr ffoorreeiiggnneerrss 48,056 41,811 54,869 52,506 56,032 54,264 60,598 66,299 61,865 63,077 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 67,501 65,344 60,038 52,916 49,883 1100 DDeeppoossiittss 14,375 15,280 15,452 14,363 12,960 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss44 41,333 37,125 31,454 24,976 23,488 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss 11,792 12,939 13,132 13,577 13,435 MMEEMMOO 1133 CCuussttoommeerr lliiaabbiilliittyy oonn aacccceeppttaanncceess 13,628 8,974 8,670 7,958 8,121 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess 44,638 42,936r 36,073r 36,441r 33,016r 33,840r 29,687 31,510 31,398 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 in the accounts 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 1993 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11998899 11999900 11999911 Sept. Dec. Mar. June 1 Total 238,123 206,903 195,302 187,468 195,560 182,873 183,236 By borrower 2 Maturity of one year or less 178,346 165,985 162,573 155,074 163,775 152,673 154,617 3 Foreign public borrowers 23,916 19,305 21,050 17,905 17,809 21,210 17,943 4 All other foreigners 154,430 146,680 141,523 137,169 145,966 131,463 136,674 5 Maturity of more than one year 59,776 40,918 32,729 32,394 31,785 30,200 28,619 6 Foreign public borrowers 36,014 22,269 15,859 13,333 13,279 12,220 11,252 7 All other foreigners .; 23,762 18,649 16,870 19,061 18,506 17,980 17,367 By area Maturity of one year or less 8 Europe 53,913 49,184 51,835 55,819 53,707 55,292 54,357 9 Canada 5,910 5,450 6,444 5,926 6,096 7,890 8,013 10 Latin America and Caribbean 53,003 49,782 43,597 45,411 50,398 45,141 48,584 11 57,755 53,258 51,059 40,664 45,726 37,895 38,818 12 Africa 3,225 3,040 2,549 2,183 1,784 1,680 1,715 13 All other3 4,541 5,272 7,089 5,071 6,064 4,775 3,130 Maturity of more than one year 14 Europe 4,121 3,859 3,878 6,624 5,367 4,896 4,561 15 Canada 2,353 3,290 3,595 3,222 3,282 3,117 2,875 16 Latin America and Caribbean 45,816 25,774 18,277 15,291 15,312 14,567 13,850 17 4,172 5,165 4,459 4,872 5,034 5,054 4,794 18 Africa 2,630 2,374 2,335 2,107 2,380 2,130 2,050 19 All other3 684 456 185 278 410 436 489 1. Reporting banks include all kinds of depository institutions besides commer- 2. Maturity is time remaining to maturity, cial banks, as well as some brokers and dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • January 1994 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 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 340.9 320.1 322.3 338.4 343.6 351.7 359.4 346.0 347.6 363.0 377.6' 2 G-10 countries and Switzerland 152.9 132.2 130.3 135.0 137.6 130.9 136.2 137.4 133.9 143.6 149.8r 3 Belgium and Luxembourg 6.3 5.9 6.1 5.8 6.0 5.3 6.2 6.2 5.6 6.1 7.0 4 France 11.7 10.4 10.5 11.1 11.0 10.0 11.9 15.3 15.3 13.6 M-C 5 Germany 10.5 10.6 8.3 9.7 8.3 8.4 8.8 10.9 9.3 9.9 10.8 6 Italy 7.4 5.0 3.6 4.5 5.6 5.4 8.0 6.4 6.5 6.7 7.6 7 Netherlands 3.1 3.0 3.3 3.0 4.7 4.3 3.3 3.7 2.8 3.7 3.7 8 Sweden 2.0 2.2 2.5 2.1 1.9 2.0 1.9 2.2 2.3 3.0 2.5 9 Switzerland 7.1 4.4 3.3 3.9 3.4 3.2 4.6 5.2 4.8 5.3 4.7 10 United Kingdom 67.2 60.9 59.5 65.6 68.5 64.8 65.9 61.8 61.3 66.3 73.5r 11 Canada 5.4 5.9 8.2 5.8 5.8 6.5 6.7 6.7 6.6 8.6 8.1 12 Japan 32.3 24.0 25.1 23.5 22.6 21.1 18.7 18.9 19.3 20.4 17.9 13 Other industrialized countries 21.0 22.9 21.3 22.1 22.8 21.4 25.5 25.1 24.0 25.5 27.2 14 Austria 1.5 1.4 1.1 1.0 .6 .8 .8 .7 1.2 1.2 1.3 15 Denmark 1.1 1.1 1.2 .9 .9 .8 1.3 1.5 .9 .8 1.0 16 Finland 1.0 .7 .8 .6 .7 .8 .8 1.0 .7 .7 .9 17 Greece 2.5 2.7 2.4 2.3 2.6 2.3 2.8 3.0 3.0 2.8 3.1 18 Norway 1.4 1.6 1.5 1.4 1.4 1.5 1.7 1.6 1.2 1.8 1.8 19 Portugal .4 .6 .6 .5 .6 .5 .5 .5 .4 .7 .9 20 Spain 7.1 8.3 7.1 8.3 8.3 7.7 10.1 9.8 9.0 9.5 10.5 21 Turkey 1.2 1.7 1.9 1.6 1.4 1.2 1.5 1.5 1.3 1.4 2.1 22 Other Western Europe 1.0 1.2 1.1 1.3 1.8 1.5 2.0 1.5 1.7 2.0 1.7 23 South Africa 2.0 1.8 1.8 1.6 1.9 1.8 1.7 1.7 1.7 1.6 1.3 24 Australia 1.6 1.8 2.0 2.4 2.7 2.3 2.3 2.3 2.9 2.9 2.5 25 OPEC2 17.1 12.8 14.0 15.6 14.5 15.8 16.2 15.9 16.1 16.8r 15.9 26 Ecuador 1.3 1.0 .9 .8 .7 .7 .7 .7 .6 .6 .6 27 Venezuela 7.0 5.0 5.3 5.6 5.4 5.4 5.3 5.4 5.2 5.3 5.6 28 Indonesia 2.0 2.7 2.6 2.8 2.7 3.0 3.0 3.0 3.0 3.1 3.1 29 Middle East countries 5.0 2.5 3.7 5.0 4.2 5.3 5.9 5.4 6.2 6.6r 5.4 30 African countries 1.7 1.7 1.5 1.5 1.5 1.4 1.4 1.4 1.1 1.1 1.1 31 Non-OPEC developing countries 77.5 65.4 64.4 64.7 63.9 69.7 68.1 72.8 72.1 74.3 76.5 Latin America 32 Argentina 6.3 5.0 4.6 4.5 4.8 5.0 5.1 6.2 6.6 7.0 6.6 33 Brazil 19.0 14.4 11.6 10.5 9.6 10.8 10.6 10.8 10.8 11.6 12.3 34 Chile 4.6 3.5 3.6 3.7 3.6 3.9 4.0 4.2 4.4 4.6 4.6 35 Colombia 1.8 1.8 1.6 1.6 1.7 1.6 1.6 1.7 1.8 1.9 1.9 36 Mexico 17.7 13.0 14.3 16.2 15.5 17.7 16.3 17.1 16.0 16.8 16.7 37 .6 .5 .5 .4 .4 .4 .4 .5 .5 .4 .4 38 Other 2.8 2.3 2.0 1.9 2.1 2.2 2.2 2.5 2.6 2.6 2.7 Asia China 39 Peoples Republic of China .3 .2 .6 .4 .3 .3 .3 .3 .7 .6 1.6 40 Republic of China (Taiwan) 4.5 3.5 4.1 4.1 4.1 4.8 4.6 5.0 5.2 5.3 5.9 41 India 3.1 3.3 3.0 2.8 3.0 3.6 3.8 3.6 3.2 3.1 3.1 42 Israel .7 .5 .5 .5 .5 .4 .4 .4 .4 .5 .4 43 Korea (South) 5.9 6.2 6.9 6.5 6.8 6.9 6.9 7.4 6.6 6.5 6.9 44 Malaysia 1.7 1.9 2.1 2.3 2.3 2.5 2.7 3.0 3.1 3.3 3.7 45 Philippines 4.1 3.8 3.7 3.6 3.7 3.6 3.1 3.6 3.6 3.4 2.9 46 Thailand 1.3 1.5 1.7 1.9 1.7 1.7 1.9 2.2 2.2 2.2 2.4 47 Other Asia3 1.0 1.7 1.8 2.0 2.0 2.3 2.5 2.7 2.7 2.7 2.6 Africa 48 Egypt .4 .4 .4 .4 .4 .3 .5 .3 .2 .2 .2 49 Morocco .9 .8 .7 .7 .7 .7 .7 .6 .6 .5 .6 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.0 1.0 .8 .8 .7 .7 .6 .9 1.0 .8 .9 52 Eastern Europe 3.5 2.3 2.1 1.8 2.4 2.9 3.0 3.1 3.1 2.9 3.2 53 Russia .7 .2 .4 .4 .9 1.4 1.7 1.8 1.9 1.7 1.9 54 Yugoslavia 1.6 1.2 1.0 .8 .9 .8 .7 .7 .6 .6 .6 55 Other 1.3 .9 .7 .7 .7 .6 .6 .7 .6 .7 .7 56 OflFshore banking centers 38.4 44.7 50.2 54.6 54.2 63.0 61.5 54.6 58.4 60. r 57.r 57 Bahamas 5.5 2.9 6.8 6.7 11.9 15.3 13.0 9.0 6.9 9.6 6.9 58 Bermuda 1.7 4.4 4.2 7.1 2.3 3.9 5.1 3.8 6.2 4.1 4.5 59 Cayman Islands and other British West Indies 9.0 11.7 14.9 13.8 15.8 18.6 19.3 16.9 21.8 17.6 15.6r 60 Netherlands Antilles 2.3 7.9 1.4 3.9 1.2 1.0 .8 .7 1.1 1.6 2.5 61 Panama 1.4 1.4 1.3 1.3 1.4 1.6 1.9 2.0 1.9 2.0 2.1 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.3 9.7 14.3 14.0 14.4 14.0 15.0 15.2 13.8 16.7 16.8 64 Singapore 7.0 6.6 7.2 7.7 7.1 8.5 6.4 6.8 6.5 8.4 9.3 65 Other .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 30.5 39.9 40.0 44.4 48.0 47.8 48.6 36.8 39.7 39.5 47.3 1. The banking offices covered by these data are the U.S. offices and foreign by an increase in the reporting threshold for "shell" branches from $50 million to branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. $150 million equivalent in total assets, the threshold now applicable to all Offices not covered include (1) U.S. agencies and branches of foreign banks, and reporting branches. (2) foreign subsidiaries of U.S. banks. U.S. office data include other types of 2. Organization of Petroleum Exporting Countries, shown individually; other U.S.-owned depository institutions as well as some types of brokers and dealers. members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, To minimize duplication, the data are adjusted to exclude the claims on foreign Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally branches held by a U.S. office or another foreign branch of the same banking members of OPEC). institution. The data in this table combine foreign branch claims in table 3.14 (the 3. Excludes Liberia. sum of lines 7 through 10) with the claims of U.S. offices in table 3.18 (excluding 4. Includes Canal Zone. those held by agencies and branches of foreign banks and those constituting 5. Foreign branch claims only. claims on own foreign branches). 6. Includes New Zealand, Liberia, and international and regional Since June 1984, reported claims held by foreign branches have been reduced 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 1992 1993 TTyyppee ooff lliiaabbiilliittyy aanndd aarreeaa oorr ccoouunnttrryy 11998899 11999900 11999911 Mar.r Juner Sept.r Dec.r Mar.r June" 1 38,764 46,043 43,692 44,879 45,251 46,125 44,322 45,177 46,141 7 Payable in dollars 33,973 40,786 38,117 39,243 38,480 37,499 36,623 37,064 36,602 3 Payable in foreign currencies 4,791 5,257 5,575 5,636 6,771 8,626 7,699 8,113 9,539 By type 4 17,879 21,066 22,055 22,813 22,823 24,061 22,804 23,071 24,219 5 Payable in dollars 14,035 16,979 17,760 18,407 17,503 17,092 16,178 16,348 16,262 6 Payable in foreign currencies 3,844 4,087 4,295 4,406 5,320 6,969 6,626 6,723 7,957 7 Commercial liabilities 20,885 24,977 21,637 22,066 22,428 22,064 21,518 22,106 21,922 8 8,070 10,683 8,699 9,164 9,769 9,727 9,437 9,945 9,692 9 Advance receipts and other liabilities 12,815 14,294 12,938 12,902 12,659 12,337 12,081 12,161 12,230 10 19,938 23,807 20,357 20,836 20,977 20,407 20,445 20,716 20,340 11 Payable in foreign currencies 947 1,170 1,280 1,230 1,451 1,657 1,073 1,390 1,582 By area or country Financial liabilities 1? 11,660 10,978 11,878 12,729 13,460 14,252 1133,,002244 1133,,334433 1144,,335555 13 Belgium and Luxembourg 340 394 236 192 213 276 434 306 268 14 258 975 2,106 1,997 2,324 2,785 1,608 1,610 2,295 15 464 621 682 666 634 738 810 820 781 16 Netherlands 941 1,081 1,056 1,025 979 980 606 639 690 17 541 545 408 355 490 627 569 503 554 18 United Kingdom 8,818 6,357 6,383 7,588 7,933 8,044 8,327 8,911 9,112 19 Canada 610 229 292 308 362 345 516 576 492 70 Latin America and Caribbean 1,357 4,153 4,404 4,230 3,503 3,592 3,565 3,624 3,428 71 157 371 537 406 353 230 359 509 404 77 17 0 114 114 114 115 114 114 124 73 0 0 6 8 10 18 19 18 18 74 British West Indies 724 3,160 3,144 3,088 2,352 2,528 2,382 2,307 2,202 75 6 5 7 7 8 12 12 13 11 26 Venezuela 0 4 4 4 4 5 6 5 5 77 4,151 5,295 5,423 5,451 5,409 5,782 5,665 5,467 5,764 78 3,299 4,065 4,187 4,192 4,316 4,749 4,639 4,495 4,621 29 Middle East oil-exporting countries2 2 5 13 13 10 17 19 24 19 30 2 2 6 7 0 5 6 6 130 31 Oil-exporting countries 0 0 4 6 0 0 0 0 123 32 All other4 100 409 52 88 89 85 28 55 50 Commercial liabilities 33 9,071 10,310 8,147 7,693 7,332 66,,999922 77,,002288 66,,776688 66,,994455 34 Belgium and Luxembourg 175 275 248 256 240 173 298 269 267 35 877 1,218 963 683 662 694 673 677 769 36 1,392 1,270 950 885 707 759 632 563 634 37 710 844 710 574 605 601 557 667 710 38 693 775 575 543 461 482 416 532 435 39 United Kingdom 2,620 2,792 2,311 2,446 2,405 2,282 2,478 2,157 2,186 40 1,124 1,261 1,014 1,115 1,109 1,114 923 998 933 41 Latin America and Caribbean 1,224 1,672 1,355 1,704 1,814 1,493 1,619 1,912 1,814 47 41 12 3 13 8 3 6 18 6 43 308 538 310 493 409 325 312 437 356 44 100 145 219 230 218 121 211 238 225 45 British West Indies 27 30 107 108 73 85 57 87 16 46 323 475 307 378 480 326 446 544 659 47 164 130 94 168 279 125 130 167 163 48 7,550 9,483 9,335 9,895 10,445 11,026 10,815 11,109 10,965 49 2,914 3,651 3,722 3,550 3,538 3,918 4,005 4,096 3,723 50 Middle Eastern oil-exporting countries ,5 1,632 2,016 1,498 1,592 1,778 1,813 1,793 1,775 1,771 51 886 844 715 646 777 675 559 590 603 52 Oil-exporting countries3 339 422 327 253 389 335 295 236 315 53 Other4 1,030 1,406 1,071 1,013 951 764 574 729 662 1. For a description of the changes in the international statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigena. Federal Reserve Bulletin, vol. 65, (July 1979), p. 550. 4. Includes nonmonetary international and regional organizations. 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • January 1994 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1992r 1993 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998899 11999900 11999911rr Mar. June Sept. Dec. Mar/ June? 1 Total 33,173 35,348 44,799 44,689 46,068 45,755 40,755 45,134 40,849 2 Payable in dollars 30,773 32,760 42,238 42,057 43,069 42,795 38,247 42,405 37,797 3 Payable in foreign currencies 2,400 2,589 2,561 2,632 2,999 2,960 2,508 2,729 3,052 By type 4 Financial claims 19,297 19,874 27,635 27,821 28,783 28,395 23,257 25,916 21,480 5 Deposits 12,353 13,577 19,856 19,969 19,679 19,405 14,991 16,520 11,598 6 Payable in dollars 11,364 12,552 18,981 18,770 18,324 18,268 14,202 15,464 10,682 7 Payable in foreign currencies 989 1,025 875 1,199 1,355 1,137 789 1,056 916 8 Other financial claims 6,944 6,297 7,779 7,852 9,104 8,990 8,266 9,396 9,882 9 Payable in dollars 6,190 5,280 6,899 7,130 8,397 7,983 7,520 8,670 8,985 10 Payable in foreign currencies 754 1,017 880 722 707 1,007 746 726 897 11 Commercial claims 13,876 15,475 17,164 16,868 17,285 17,360 17,498 19,218 19,369 12 Trade receivables 12,253 13,657 14,438 14,301 14,822 14,655 15,210 17,096 16,939 13 Advance payments and other claims 1,624 1,817 2,726 2,567 2,463 2,705 2,288 2,122 2,430 14 Payable in dollars 13,219 14,927 16,358 16,157 16,348 16,544 16,525 18,271 18,130 15 Payable in foreign currencies 657 548 806 711 937 816 973 947 1,239 By area or country Financial claims 16 Europe 8,463 9,645 13,277 13,834 12,871 11,229 9,131 10,180 9,407 17 Belgium and Luxembourg 28 76 13 12 25 16 8 6 13 18 France 153 371 269 252 777 768 762 905 774 19 Germany 152 367 287 266 358 296 330 382 377 20 Netherlands 238 265 334 707 715 750 515 544 499 21 Switzerland 153 357 581 647 765 587 487 478 460 22 United Kingdom 7,496 7,971 11,366 11,580 8,692 8,002 6,054 6,833 6,350 23 Canada 1,904 2,934 2,642 2,694 2,545 2,281 1,704 2,107 1,758 24 Latin America and Caribbean 8,020 6,201 10,634 10,244 12,001 13,731 11,032 9,611 6,612 25 Bahamas 1,890 1,090 784 493 538 1,212 638 320 697 26 Bermuda 7 3 8 12 12 65 40 79 258 27 Brazil 224 68 351 346 331 589 686 592 590 28 British West Indies 5,486 4,635 9,016 8,965 10,699 11,422 9,196 8,159 4,558 29 Mexico 94 177 212 212 244 239 286 235 270 30 Venezuela 20 25 40 34 32 26 29 23 24 31 Asia 590 860 640 617 952 717 806 3,263 2,961 32 Japan 213 523 350 355 705 471 643 3,066 2,444 33 Middle East oil-exporting countries 8 8 5 3 4 4 3 3 10 34 Africa 140 37 57 60 57 71 79 128 125 35 Oil-exporting countries3 12 0 1 0 0 1 9 1 1 36 All other4 180 195 385 372 357 366 505 627 617 Commercial claims 37 Europe 6,209 7,044 7,992 7,971 8,239 7,909 7,776 8,415 8,770 38 Belgium and Luxembourg 242 212 192 182 255 173 186 169 170 39 France 964 1,240 1,583 1,663 1,685 1,824 11,,449933 1,465 1,452 40 Germany 696 807 952 946 919 895 889988 960 964 41 Netherlands 479 555 643 646 666 588 541 724 555 42 Switzerland 313 301 295 323 394 305 307 426 441 43 United Kingdom 1,575 1,775 2,084 2,085 2,172 2,004 1,941 2,312 2,506 44 Canada 1,091 1,074 1,111 1,121 1,063 1,138 1,213 1,259 1,285 45 Latin America and Caribbean 2,184 2,375 2,649 2,630 2,727 3,213 2,962 3,388 3,376 46 Bahamas 58 14 13 12 12 12 27 18 16 47 Bermuda 323 246 264 273 291 256 246 195 239 48 Brazil 297 326 425 372 447 406 348 821 780 49 British West Indies 36 40 41 45 32 43 38 17 42 50 Mexico 508 661 839 907 859 973 903 967 876 51 Venezuela 147 192 203 207 253 307 338 336 310 52 Asia 3,570 4,127 4,592 4,368 4,499 4,314 4,649 5,295 5,029 53 Japan 1,199 1,460 1,900 1,796 1,798 1,774 1,812 2,122 1,824 54 Middle Eastern oil-exporting countries'1 518 460 621 635 609 513 679 756 659 55 Africa 429 488 427 424 428 439 549 454 507 56 Oil-exporting countries 108 67 95 75 73 60 78 75 97 57 Other4 393 367 393 354 329 347 349 407 402 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 1993 Transaction and area or country 1991 1992 J S a e n p . t - . Mar. Apr. May June July Aug.r Sept.p U.S. corporate securities STOCKS 1 Foreign purchases 211,207 221,426 221,932 27,061 25,123 23,094 24,310 24,441r 26,111 23,843 2 Foreign sales 200,116 226,548 212,947 24,615 25,454 22,308 23,467 25,046r 23,693 23,009 3 Net purchases or sales (—) 11,091 -5,122 8,985 2,446 -331 786 843 —605r 2,418 834 4 Foreign countries 10,522 -5,155 8,719 2,289 -339 790 815 —652r 2,391 916 5 Europe 53 -4,913 3,338 972 -650 -619 415 -185 670 408 6 France 9 -1,350 -404 -183 -154 -86 -66 45 -9 -149 7 Germany -63 -66 923 100 137 6 99 76 202 112 8 Netherlands -227 -262 -153 68 32 35 -91 -452 133 69 9 Switzerland -131 168 2,033 356 280 50 178 369 354 -260 10 United Kingdom -352 -3,301 -81 475 -1,140 -689 195 -73 -204 570 11 Canada 3,845 1,407 -2,834 167 91 -132 -532 -1,400 -128 -616 12 Latin America and Caribbean 2,177 2,203 2,454 403 246 509 72 413 591 150 13 Middle East1 -134 -88 -298 -13 7 56 -22 -135r -44 10 14 Other Asia 4,255 -3,943 6,031 763 2 910 1,073 632 1,204 977 15 Japan 1,179 -3,598 2,308 250 -530 452 230 626 860 1,016 16 Africa 153 10 32 2 -48 10 20 -49 63 3 17 Other countries 174 169 -4 -5 13 56 -211 72 35 -16 18 Nonmonetary international and regional organizations 568 33 266 157 8 -4 28 47 27 --8822 BONDS2 19 Foreign purchases 153,096 214,922 198,613 25,216 20,817 19,325 24,091 22,738 22,288 24,747 20 Foreign sales 125,637 175,737 158,383 23,264 15,765 15,514 16,825 20,730 16,475 15,791 21 Net purchases or sales (-) 27,459 39,185 40,230 1,952 5,052 3,811 7,266 2,008 5,813 8,956 22 Foreign countries 27,590 38,069 39,922 2,088 5,073 3,843 7,229 2,018 5,807 8,270 73 Europe 13,112 17,540 13,857 31 1,616 360 2,710 -1,001 2,108 4,187 74 France 847 1,203 1,579 75 508 595 -12 -76 64 13 7.5 Germany 1,577 2,480 638 -55 815 228 -241 2 -207 -44 76 Netherlands 482 540 84 -178 108 -7 -134 11 317 219 77 Switzerland 656 -579 -779 11 -239 -219 -56 172 -327 -205 28 United Kingdom 8,931 12,526 11,392 -237 975 -303 3,033 -1,214 1,853 3,959 79 Canada 1,623 237 1,185 138 291 20 397 218 164 249 30 Latin America and Caribbean 2,672 9,300 8,435 490 632 1,262 1,770 901 1,678 846 31 Middle East1 1,787 3,166 2,067 263 463 115 202 147 158 171 37 Other Asia 8,459 7,545 13,221 1,216 2,082 2,062 2,089 1,382 1,432 2,504 33 Japan 5,767 -450 66,,557733 595 991 940 863 890 919 1,124 34 Africa 52 354 998855 -10 0 21 2 224 317 236 35 Other countries -116 -73 172 -40 -11 3 59 147 -50 77 36 Nonmonetary international and regional organizations -131 1,116 308 -136 -21 -32 37 -10 6 668866 Foreign securities 37 Stocks, net purchases or sales (-)' -31,967 -32,295 -47,730 -4,583 -4,029 -3,793 -6,317 -7,964r -12,020 -5,115 38 Foreign purchases 120,598 150,037 161,326 17,436 19,297 16,465 18,523 19,620 20,687 21,500 39 Foreign sales 152,565 182,332 209,056 22,019 23,326 20,258 24,840 27,584r 32,707 26,615 40 Bonds, net purchases or sales (-) -14,828 -19,585 -51,636 -4,631 -2,913 -545 -7,528 —10,633r -1,115 -9,636 41 Foreign purchases 330,311 486,238 566,535 70,132 55,766 58,771 70,377 68,769r 75,938 72,191 42 Foreign sales 345,139 505,823 618,171 74,763 58,679 59,316 77,905 79,402r 77,053 81,827 43 Net purchases or sales (-), of stocks and bonds -46,795 -51,880 -99,366 -9,214 -6,942 -4,338 -13,845 —18,597r -13,135 -14,751 44 Foreign countries -46,711 -55,216 -99,142 -8,945 -7,221 -4,671 -13,907 —18,707r -13,189 -14,827 45 Europe -34,452 -37,284 -73,712 -3,098 -3,252 -5,382 -11,719 -15,488r -10,461 -11,164 46 Canada -7,004 -6,635 -14,356 -3,034 -818 11 -1,277 -2,557 1,635 -3,127 47 Latin America and Caribbean 759 -3,881 -480 68 -2,551 1,092 421 —635r -1,124 2,029 48 -7,350 -6,654 -8,649 -2,481 -531 -185 -780 121r -2,606 -2,343 49 Africa -9 -2 -192 -18 -18 -186 9 4r 7 14 50 Other countries 1,345 -760 -1,753 -382 -51 -21 -561 -152 -640 -236 51 Nonmonefairy international and regional organizations -84 3,336 -224 -269 279 333 62 110 5544 7766 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, 3. In a July 1989 merger, the former stockholders of a U.S. company received Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). $5,453 million in shares of the new combined U.K. company. This transaction is 2. Includes state and local government securities and securities of U.S. not reflected in the data. government agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • January 1994 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1993 1993 Country or area 1991 1992 J S a e n p . t - . Mar. Apr. May June July Aug/ Sept.p Transactions, net purchases or sales (-) during period1 1 Estimated total 19,865 39,288 4,663 6,581 4,232 -1,159 -5,710 -1,531 13,980 -10,896 2 Foreign countries 19,687 37,935 3,761 6,029 4,393 -877 -5,955 -1,144 14,368 -10,743 3 Europe 8,663 19,625 -5,469 -3,379 1,518 -190 1,473 -1,539 3,547 -5,917 4 Belgium and Luxembourg 523 1,985 1,466 640 -387 647 86 505 -218 207 5 Germany -4,725 2,076 -10,974 -2,757 -1,382 -3,3% -1,100 -2,918 305 1,209 6 Netherlands -3,735 -2,959 -26 66 731 108 -393 524 -167 137 7 Sweden -663 -804 1,264 -540 -100 649 673 32 293 53 8 Switzerland 1,007 488 -2,452 -1,569 -719 108 888 -223 -74 -209 9 United Kingdom 6,218 24,184 7,745 742 2,659 2,948 2,147 1,455 3,787 -8,201 10 Other Europe and former U.S.S.R 10,037 -5,345 -2,492 39 716 -1,254 -828 -914 -379 887 11 Canada -3,019 562 9,390 2,490 1,386 522 133 2,270 324 -1,119 12 Latin America and Caribbean 10,285 -3,222 -5,633 -537 -2,020 -3,880 -1,419 -333 6,917 -3,311 13 Venezuela 10 539 416 154 74 152 5 2 -7 32 14 Other Latin America and Caribbean 4,179 -1,956 -5,504 -471 1,096 -1,863 711 510 1,178 -1,700 15 Netherlands Antilles 6,097 -1,805 -545 -220 -3,190 -2,169 -2,135 -845 5,746 -1,643 16 3,367 23,517 6,771 7,220 3,813 2,994 -5,687 -2,587 3,755 -569 17 Japan -4,081 9,817 10,604 3,457 3,324 3,291 -301 -980 3,561 -1,809 18 Africa 689 1,103 932 -66 67 -2 81 116 292 616 19 Other -298 -3,650 -2,230 301 -371 -321 -536 929 -467 —443 20 Nonmonetary international and regional organizations 178 1,353 902 552 -161 -282 245 -387 -388 -153 21 International -358 1,018 -408 56 -228 -318 402 -321 -698 -110 22 Latin American regional -72 533 638 1 16 -17 106 -21 30 18 MEMO 23 Foreign countries 19,687 37,935 3,761 6,029 4,393 -877 -5,955 -1,144 14,368 -10,743 24 Official institutions 1,190 6,876 -10,201 -616 2,709 -3,424 -760 -4,880 724 3,390 25 Other foreign2 18,496 31,059 13,962 6,645 1,684 2,547 -5,195 3,736 13,644 -14,133 Oil-exporting countries 26 Middle East2 -6,822 4,317 -8,094 811 114 -1,070 -2,443 -1,261 -1,172 -980 27 239 11 4 0 -4 0 0 0 0 0 1. Official and private transactions in marketable U.S. Treasury securities 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and having an original maturity of more than one year. Data are based on monthly United Arab Emirates (Trucial States). transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes 3. Comprises Algeria, Gabon, Libya, and Nigeria. held by official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS1 Percent per year Rate on Nov. 30, 1993 Rate on Nov. 30, 1993 Rate on Nov. 30, 1993 Country Country Country e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Austria.. 5.25 Nov. 1993 Germany... 5.75 Oct. 1993 Norway 7.0 Oct. 1993 Belgium . 5.5 Nov. 1993 Italy 8.0 Oct. 1993 Switzerland 4.25 Oct. 1993 Canada.. 4.34 Nov. 1993 Japan 1.75 Sept. 1993 United Kingdom 12.0 Sept. 1992 Denmark 6.50 Nov. 1993 Netherlands 5.25 Oct. 1993 France2.. 6.45 Oct. 1993 1. Rates shown are mainly those at which the central bank either discounts or 2. Since February 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 Percent per year, averages of daily figures 1993 TTyyppee oorr ccoouunnttrryy 11999900 11999911 11999922 May June July Aug. Sept. Oct. Nov. 8.16 5.86 3.70 3.12 3.21 3.17 3.14 3.08 3.26 3.36 14.73 11.47 9.56 5.91 5.83 5.88 5.79 5.88 5.74 5.52 13.00 9.07 6.76 5.29 4.91 4.48 4.58 4.90 4.76 4.34 8.41 9.15 9.42 7.41 7.51 7.12 6.49 6.52 6.53 6.20 8.71 8.01 7.67 • 4.97 4.99 4.62 4.56 4.61 4.44 4.44 8.57 9.19 9.25 6.98 6.64 6.45 6.27 6.26 6.20 5.85 10.20 9.49 10.14 7.48 7.19 7.72 7.45 7.07 6.85 6.56 8 Italy 12.11 12.04 13.91 10.74 10.18 9.42 9.20 9.05 8.69 8.94 9.70 9.30 9.31 7.16 6.87 7.12 9.02 9.82 9.05 7.93 7.75 7.33 4.39 3.24 3.23 3.22 3.02 2.59 2.44 2.31 1. Rates are for three-month interbank loans, with the following exceptions: Canada, finance company paper; Belgium, three-month Treasury bills; and Japan, CD rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • January 1994 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1993 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999900 11999911 11999922 June July Aug. Sept. Oct. Nov. 1 Australia/dollar2 78.069 77.872 73.521 67.492 67.788 67.736 65.167 66.100 66.465 2 Austria/schilling 11.331 11.686 10.992 11.637 12.071 11.920 11.402 11.540 11.958 3 Belgium/franc 33.424 34.195 32.148 34.009 35.483 35.985 34.847 35.674 36.227 4 Canada/dollar 1.1668 1.1460 1.2085 1.2789 1.2820 1.3080 1.3215 1.3263 1.3174 5 China, P.R./yuan 4.7921 5.3337 5.5206 5.7504 5.7756 5.7906 5.8015 5.8013 5.8086 6 Denmark/krone 6.1899 6.4038 6.0372 6.3380 6.6531 6.8976 6.6336 6.6379 6.7667 7 Finland/markka 3.8300 4.0521 4.4865 5.5674 5.7852 5.8315 5.7868 5.7554 5.8143 8 France/franc 5.4467 5.6468 5.2935 5.5700 5.8464 5.9298 5.6724 5.7541 5.9069 9 Germany/deutsche mark 1.6166 1.6610 1.5618 1.6547 1.7157 1.6944 1.6219 1.6405 1.7005 10 Greece/drachma 158.59 182.63 190.81 225.45 234.77 237.64 232.56 237.93 243.43 11 Hong Kong/dollar 7.7899 7.7712 7.7402 7.7362 7.7556 7.7515 7.7384 7.7307 7.7272 12 India/rupee 17.492 22.712 28.156 31.668 31.600 31.612 31.578 31.505 31.434 13 Ireland/pound2 165.76 161.39 170.42 147.47 140.83 139.05 143.40 143.19 140.31 14 Italy/lira 1,198.27 1,241.28 1,232.17 1,505.05 1,586.02 1,603.75 1,569.10 1,600.93 1,666.31 15 Japan/yen 145.00 134.59 126.78 107.41 107.69 103.77 105.57 107.02 107.88 16 Malaysia/ringgit 2.7057 2.7503 2.5463 2.5696 2.5672 2.5514 2.5475 2.5478 2.5548 17 Netherlands/guilder 1.8215 1.8720 1.7587 1.8559 1.9299 1.9062 1.8214 1.8438 1.9084 18 New Zealand/dollar2 59.619 57.832 53.792 53.949 54.900 55.261 55.157 55.260 54.787 19 Norway/krone 6.2541 6.4912 6.2142 6.9986 7.3179 7.3579 7.0829 7.1755 7.3882 20 Portugal/escudo 142.70 144.77 135.07 157.63 167.87 173.27 166.28 169.60 173.93 21 Singapore/dollar 1.8134 1.7283 1.6294 1.6175 1.6206 1.6100 1.5972 1.5735 1.5950 22 South Africa/rand 2.5885 2.7633 2.8524 3.2408 3.3518 3.3660 3.4135 3.3924 3.3680 23 South Korea/won 710.64 736.73 784.58 805.91 809.58 811.94 811.84 813.45 809.79 24 Spain/peseta 101.96 104.01 102.38 127.11 134.93 138.51 130.54 132.18 137.27 25 Sri Lanka/rupee 40.078 41.200 44.013 48.073 48.643 48.750 48.854 48.954 49.187 26 Sweden/krona 5.9231 6.0521 5.8258 7.4541 7.9802 8.0466 8.0170 8.0195 8.2660 27 Switzerland/franc 1.3901 1.4356 1.4064 1.4769 1.5147 1.4966 1.4182 1.4432 1.4969 28 Taiwan/dollar 26.918 26.759 25.160 26.267 26.682 26.950 26.931 26.865 26.884 29 Thailand/baht 25.609 25.528 25.411 25.214 25.331 25.191 25.196 25.269 25.382 30 United Kingdom/pound2 178.41 176.74 176.63 150.82 149.55 149.14 152.48 150.23 148.08 MEMO 31 United States/dollar3 89.09 89.84 86.61 91.81 94.59 94.32 92.07 93.29 95.47 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 December 1993 A78 SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30, 1992 February 1993 A70 December 31, 1992 May 1993 A70 March 31, 1993 August 1993 A70 June 30, 1993 November 1993 A70 Terms of lending at commercial banks November 1992 February 1993 A76 February 1993 May 1993 A76 May 1993 August 1993 A76 August 1993 November 1993 A76 Assists and liabilities of U.S. branches and agencies of foreign banks September 30, 1992 February 1993 A80 December 31, 1992 May 1993 A80 March 31, 1993 August 1993 A80 June 30, 1993 November 1993 A80 Pro forma balance sheet and income statements for priced service operations June 30, 1991 November 1991 A80 September 30, 1991 January 1992 A70 March 30, 1992 August 1992 A80 June 30, 1992 October 1992 A70 Assets and liabilities of life insurance companies June 30, 1991 December 1991 A79 September 30,1991 May 1992 A81 December 31, 1991 August 1992 A83 September 30, 1992 March 1993 A71 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Index to Statistical Tables References are to pages A3-A68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 22, 23 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 24 Banks, by classes, 20-23 Turnover, 17 Domestic finance companies, 36 Depository institutions Federal Reserve Banks, 11 Reserve requirements, 9 Financial institutions, 28 Reserves and related items, 4, 5, 6, 13 Foreign banks, U.S. branches and agencies, 24 Deposits (See also specific types) Automobiles Banks, by classes, 4, 20-23, 24 Consumer installment credit, 39 Federal Reserve Banks, 5,11 Production, 47, 48 Interest rates, 16 Turnover, 17 BANKERS acceptances, 10, 23, 26 Discount rates at Reserve Banks and at foreign central banks and Bankers balances, 20-23. (See also Foreigners) foreign countries (See Interest rates) Bonds (See also U.S. government securities) Discounts and advances by Reserve Banks (See Loans) New issues, 35 Dividends, corporate, 35 Rates, 26 Branch banks, 24, 55 EMPLOYMENT, 45 Business activity, nonfinancial, 45 Eurodollars, 26 Business expenditures on new plant and equipment, 35 Business loans (See Commercial and industrial loans) FARM mortgage loans, 38 Federal agency obligations, 5, 10, 11, 12, 31, 32 Federal credit agencies, 33 CAPACITY utilization, 46 Federal finance Capital accounts Debt subject to statutory limitation, and types and ownership Banks, by classes, 20 of gross debt, 30 Federal Reserve Banks, 11 Receipts and outlays, 28, 29 Central banks, discount rates, 67 Treasury financing of surplus, or deficit, 28 Certificates of deposit, 26 Treasury operating balance, 28 Commercial and industrial loans Federal Financing Bank, 28, 33 Commercial banks, 18, 22 Federal funds, 7, 19, 22, 23, 24, 26, 28 Weekly reporting banks, 22-24 Federal Home Loan Banks, 33 Commercial banks Federal Home Loan Mortgage Corporation, 33, 37, 38 Assets and liabilities, 20-23 Federal Housing Administration, 33, 37, 38 Commercial and industrial loans, 18, 20, 21, 22, 23, 24 Federal Land Banks, 38 Consumer loans held, by type and terms, 39 Federal National Mortgage Association, 33, 37, 38 Deposit interest rates of insured, 16 Federal Reserve Banks Loans sold outright, 22 Condition statement, 11 Nondeposit funds, 19 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 38 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, loans to, 22, 23, 24 Profits and their distribution, 35 Float, 51 Security issues, 34, 65 Flow of funds, 40, 42, 43, 44 Cost of living (See Consumer prices) Foreign banks, assets and liabilities of U.S. branches and Credit unions, 39 agencies, 23, 24 Currency in circulation, 5, 14 Foreign currency operations, 11 Customer credit, stock market, 27 Foreign deposits in U.S. banks, 5, 11, 22, 23 Foreign exchange rates, 68 DEBITS to deposit accounts, 17 Foreign trade, 54 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 20-24 Liabilities to, 23, 54, 55, 57, 58, 63, 65, 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 GOLD REAL estate loans Certificate account, 11 Banks, by classes, 18, 22, 23, 38 Stock, 5, 54 Terms, yields, and activity, 37 Government National Mortgage Association, 33, 37, 38 Type of holder and property mortgaged, 38 Gross domestic product, 51 Repurchase agreements, 7, 19, 22, 23, 24 Reserve requirements, 9 HOUSING, new and existing units, 49 Reserves Commercial banks, 20 INCOME, personal and national, 45, 51,52 Depository institutions, 4, 5, 6, 13 Industrial production, 45, 47 Federal Reserve Banks, 11 Installment loans, 39 U.S. reserve assets, 54 Insurance companies, 30, 38 Residential mortgage loans, 37 Interest rates Retail credit and retail sales, 39, 40, 45 Bonds, 26 Consumer installment credit, 39 SAVING Deposits, 16 Flow of funds, 40, 42, 43, 44 Federal Reserve Banks, 8 National income accounts, 51 Foreign central banks and foreign countries, 67 Savings and loan associations, 38, 39,40. (See also SAIF-insured Money and capital markets, 26 institutions) Mortgages, 37 Savings banks, 38, 39 Prime rate, 25 Savings deposits (See Time and savings deposits) International capital transactions of United States, 53-67 Securities (See also specific types) International organizations, 57, 58, 60, 63, 64 Federal and federally sponsored credit agencies, 33 Inventories, 51 Foreign transactions, 65 Investment companies, issues and assets, 35 New issues, 34 Prices, 27 Investments (See also specific types) Banks, by classes, 20, 21, 22, 23, 24 Special drawing rights, 5, 11, 53, 54 Commercial banks, 4, 18, 20-23 State and local governments Federal Reserve Banks, 11, 12 Deposits, 22, 23 Financial institutions, 38 Holdings of U.S. government securities, 30 New security issues, 34 Ownership of securities issued by, 22, 23 LABOR force, 45 Rates on securities, 26 Life insurance companies (See Insurance companies) Stock market, selected statistics, 27 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 20-23 New issues, 34 Commercial banks, 4, 18, 20-23 Prices, 27 Federal Reserve Banks, 5, 6, 8, 11, 12 Financial institutions, 38 Student Loan Marketing Association, 33 Insured or guaranteed by United States, 37, 38 TAX receipts, federal, 29 MANUFACTURING Thrift institutions, 4. (See also Credit unions and Savings and Capacity utilization, 46 loan associations) Production, 46, 48 Time and savings deposits, 4, 14, 16, 19, 20, 21, 22, 23, 24 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

A72 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman WAYNE D. ANGELL DAVID W. MULLINS, JR., Vice Chairman EDWARD W. KELLEY, JR. OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director THEODORE E. ALLISON, Assistant to the Board for Federal CHARLES J. SIEGMAN, Senior Associate Director Reserve System Affairs DALE W. HENDERSON, Associate Director LYNN S. Fox, Special Assistant to the Board DAVID H. HOWARD, Senior Adviser WINTHROP P. HAMBLEY, Special Assistant to the Board DONALD B. ADAMS, Assistant Director BOB STAHLY MOORE, Special Assistant to the Board PETER HOOPER III, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel SCOTT G. ALVAREZ, Associate General Counsel MICHAEL J. PRELL, Director RICHARD M. ASHTON, Associate General Counsel EDWARD C. ETTIN, Deputy Director OLIVER IRELAND, Associate General Counsel WILLIAM R. JONES, Associate Director KATHLEEN M. O'DAY, Associate General Counsel THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director OFFICE OF THE SECRETARY DAVID J. STOCKTON, Associate Director 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 BARBARA R. LOWREY, Associate Secretary PATRICK M. PARKINSON, Assistant Director MARTHA S. SCANLON, Assistant Director DIVISION OF BANKING JOYCE K. ZICKLER, Assistant Director SUPERVISION AND REGULATION JOHN J. MINGO, Senior Adviser RICHARD SPILLENKOTHEN, Director LEVON H. GARABEDIAN, Assistant Director STEPHEN C. SCHEMERING, Deputy Director (Administration) DON E. KLINE, Associate Director WILLIAM A. RYBACK, Associate Director DIVISION OF MONETARY AFFAIRS FREDERICK M. STRUBLE, Associate Director DONALD L. KOHN, Director HERBERT A. BIERN, Deputy Associate Director DAVID E. LINDSEY, Deputy Director ROGER T. COLE, Deputy Associate Director BRIAN F. MADIGAN, Associate Director JAMES I. GARNER, Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director HOWARD A. AMER, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board GERALD A. EDWARDS, JR., Assistant Director JAMES D. GOETZINGER, Assistant Director DIVISION OF CONSUMER STEPHEN M. HOFFMAN, JR., Assistant Director AND COMMUNITY AFFAIRS LAURA M. HOMER, Assistant Director JAMES V. HOUPT, Assistant Director GRIFFITH L. GARWOOD, Director JACK P. JENNINGS, Assistant Director GLENN E. LONEY, Associate Director MICHAEL G. MARTINSON, Assistant Director DOLORES S. SMITH, Associate Director RHOGER H PUGH, Assistant Director MAUREEN P. ENGLISH, Assistant Director SIDNEY M. SUSSAN, Assistant Director IRENE SHAWN MCNULTY, Assistant Director MOLLY S. WASSOM, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 JOHN P. LAWARE SUSAN M. PHILLIPS LAWRENCE B. LINDSEY OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director WILLIAM SCHNEIDER, Special Assignment: DAVID L. ROBINSON, Deputy Director (Finance and Project Director, National Information Center Control) PORTIA W. THOMPSON, Equal Employment Opportunity CHARLES W. BENNETT, Assistant Director Programs Officer JACK DENNIS, JR., Assistant Director EARL G. HAMILTON, Assistant Director DIVISION OF HUMAN RESOURCES JEFFREY C. MARQUARDT, Assistant Director MANAGEMENT JOHN H. PARRISH, Assistant Director LOUISE L. ROSEMAN, Assistant Director DAVID L. SHANNON, Director FLORENCE M. YOUNG, Assistant Director JOHN R. WEIS, Associate 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

A74 Federal Reserve Bulletin • January 1994 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman WAYNE D. ANGELL JERRY L. JORDAN DAVID W. MULLINS, JR. J. ALFRED BROADDUS, JR. EDWARD W. KELLEY, JR. SUSAN M. PHILLIPS ROBERT P. FORRESTAL JOHN P. LAWARE ROBERT T. PARRY LAWRENCE B. LINDSEY ALTERNATE MEMBERS THOMAS M. HOENIG THOMAS C. MELZER RICHARD F. SYRON SILAS KEEHN JAMES H. OLTMAN STAFF DONALD L. KOHN, Secretary and Economist RICHARD W. LANG, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary DAVID E. LINDSEY, Associate Economist JOSEPH R. COYNE, Assistant Secretary LARRY J. PROMISEL, Associate Economist GARY P. GILLUM, Assistant Secretary ARTHUR J. ROLNICK, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel HARVEY ROSENBLUM, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel KARL A. SCHELD, Associate Economist MICHAEL J. PRELL, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist THOMAS D. SIMPSON, Associate Economist RICHARD G. DAVIS, Associate Economist LAWRENCE SLIFMAN, Associate Economist JOAN E. LOVETT, Manager for Domestic Operations, System Open Market Account PETER R. FISHER, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL E. B. ROBINSON, JR., President JOHN B. MCCOY, Vice President MARSHALL N. CARTER, First District EUGENE A. MILLER, Seventh District CHARLES S. SANFORD, JR., Second District ANDREW B. CRAIG, III, Eighth District ANTHONY P. TERRACCIANO, Third District JOHN F. GRUNDHOFER, Ninth District JOHN B. MCCOY, Fourth District DAVID A. RISMILLER, Tenth District EDWARD E. CRUTCHFIELD, JR., Fifth District CHARLES R. HRDLICKA, Eleventh District E.B. ROBINSON, JR., Sixth District RICHARD M. ROSENBERG, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 CONSUMER ADVISORY COUNCIL DENNY D. DUMLER, Denver, Colorado, Chairman JEAN POGGE, Chicago, Illinois, Vice Chairman BARRY A. ABBOTT, San Francisco, California BONNIE GUITON, Charlottesville, Virginia JOHN R. ADAMS, Philadelphia, Pennsylvania JOYCE HARRIS, Madison, Wisconsin JOHN A. BAKER, Atlanta, Georgia GARY S. HATTEM, New York, New York VERONICA E. BARELA, Denver, Colorado JULIA E. HILER, Marietta, Georgia MULUGETTA BIRRU, Pittsburgh, Pennsylvania RONALD HOMER, Boston, Massachusetts DOUGLAS D. BLANKE, St. Paul, Minnesota THOMAS L. HOUSTON, Dallas, Texas GENEVIEVE BROOKS, Bronx, New York HENRY JARAMILLO, Belen, New Mexico TOYE L. BROWN, Boston, Massachusetts EDMUND MIERZWINSKI, Washington, D.C. CATHY CLOUD, Washington, D.C. JOHN V. SKINNER, Irving, Texas MICHAEL D. EDWARDS, Yelm, Washington LOWELL N. SWANSON, Portland, Oregon MICHAEL FERRY, St. Louis, Missouri MICHAEL W. TIERNEY, Washington, D.C. NORMA L. FREIBERG, New Orleans, Louisiana GRACE W. WEINSTEIN, Englewood, New Jersey LORI GAY, Los Angeles, California JAMES L. WEST, Tijeras, New Mexico DONALD A. GLAS, Hutchinson, Minnesota ROBERT O. ZDENEK, Greenwich, Connecticut 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, Menifield, Virginia STEPHEN W. PROUGH, Irvine, California KERRY KILLINGER, Seattle, Washington THOMAS R. RICKETTS, Troy, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated MS-127, Board of Governors of the Federal Reserve System, at least monthly. (Requests must be prepaid.) Washington, DC 20551 or telephone (202) 452-3244 or FAX Consumer and Community Affairs Handbook. $75.00 per (202) 728-5886. When a charge is indicated, payment should year. accompany request and be made payable to the Board of Monetary Policy and Reserve Requirements Handbook. Governors of the Federal Reserve System. Payment from for- $75.00 per year. eign residents should be drawn on a U.S. bank. Securities Credit Transactions Handbook. $75.00 per year. The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. 3 vols. (Contains all four Handbooks plus substantial additional material.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. $200.00 per year. 1984. 120 pp. Rates for subscribers outside the United States are as follows ANNUAL REPORT. and include additional air mail costs: ANNUAL REPORT: BUDGET REVIEW, 1991-92. Federal Reserve Regulatory Service, $250.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or Each Handbook, $90.00 per year. $2.50 each in the United States, its possessions, Canada, THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTIand Mexico. Elsewhere, $35.00 per year or $3.00 each. COUNTRY MODEL, May 1984. 590 pp. $14.50 each. ANNUAL STATISTICAL DIGEST: period covered, release date, WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. number of pages, and price. INDUSTRIAL PRODUCTION —1986 EDITION. December 1986. 1981 October 1982 239 pp. $ 6.50 440 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. 1984 October 1985 254 pp. $12.50 December 1986. 264 pp. $10.00 each. 1985 October 1986 231 pp. $15.00 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 CONSUMER EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages Consumer Handbook to Credit Protection Laws SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $30.00 per year or $.70 each in the A Guide to Business Credit for Women, Minorities, and Small United States, its possessions, Canada, and Mexico. Else- Businesses where, $35.00 per year or $.80 each. How to File A Consumer Credit Complaint Series on the Structure of the Federal Reserve System THE FEDERAL RESERVE ACT and other statutory provisions The Board of Governors of the Federal Reserve System affecting the Federal Reserve System, as amended through The Federal Open Market Committee August 1990. 646 pp. $10.00. Federal Reserve Bank Board of Directors REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL Federal Reserve Banks RESERVE SYSTEM. Organization and Advisory Committees A Consumer's Guide to Mortgage Lock-Ins ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Settlement Costs Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. A Consumer's Guide to Mortgage Refinancings Vol. II (Irregular Transactions). 1969. 116 pp. Each vol- Home Mortgages: Understanding the Process and Your Right ume $2.25; 10 or more of same volume to one address, to Fair Lending $2.00 each. Making Deposits: When Will Your Money Be Available? GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 When Your Home is on the Line: What You Should Know each. About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All STAFF STUDIES: Only Summaries Printed in the 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 1980-90, by Margaret Hastings Pickering. May 1991. BULLETIN 21 pp. 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- 165. THE DEMAND FOR TRADE CREDIT: AN INVESTIGATION OF DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES, and Deborah Johnson. December 1985. 42 pp. by Gregory E. Elliehausen and John D. Wolken. Septem- 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE ber 1993. 18 pp. ECONOMIC RECOVERY TAX ACT: SOME SIMULATION RESULTS, by Flint Brayton and Peter B. Clark. December 1985. 17 pp. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN REPRINTS OF SELECTED BULLETIN ARTICLES BANKING BEFORE AND AFTER ACQUISITION, by Stephen Some Bulletin articles are reprinted. The articles listed below A. Rhoades. April 1986. 32 pp. are those for which reprints are available. Most of the articles 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: reprinted do not exceed twelve pages. Limit often copies. A REEXAMINATION AND AN APPLICATION, by John T. Rose and John D. Wolken. May 1986. 13 pp. Recent Developments in the Bankers Acceptance Market. 1/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING The Use of Cash and Transaction Accounts by American FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice Families. 2/86. P. White, Paul F. O'Brien, and Mary M. McLaughlin. Financial Characteristics of High-Income Families. 3/86. January 1987. 30 pp. Prices, Profit Margins, and Exchange Rates. 6/86. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Agricultural Banks under Stress. 7/86. REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Foreign Lending by Banks: A Guide to International and U.S. April 1987. 18 pp. Statistics. 10/86. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Recent Developments in Corporate Finance. 11/86. Alice P. White. September 1987. 14 pp. Measuring the Foreign-Exchange Value of the Dollar. 6/87. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF Changes in Consumer Installment Debt: Evidence from the PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, 1983 and 1986 Surveys of Consumer Finances. 10/87. by Glenn B. Canner and James T. Fergus. October 1987. Home Equity Lines of Credit. 6/88. 26 pp. Mutual Recognition: Integration of the Financial Sector in the 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. European Community. 9/89. Warshawsky. November 1987. 25 pp. The Activities of Japanese Banks in the United Kingdom and in 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING the United States, 1980-88. 2/90. MARKETS, by James V. Houpt. May 1988. 47 pp. Industrial Production: 1989 Developments and Historical 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR Revision. 4/90. THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Recent Developments in Industrial Capacity and Utilization. Porter, and David H. Small. April 1989. 28 pp. 6/90. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- Developments Affecting the Profitability of Commercial Banks. MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE 7/90. PRODUCTS, by Mark J. Warshawsky with the assistance of Recent Developments in Corporate Finance. 8/90. Dietrich Earnhart. September 1989. 23 pp. U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSID- The Transmission Channels of Monetary Policy: How Have IARIES OF BANK HOLDING COMPANIES, by Nellie Liang They Changed? 12/90. and Donald Savage. February 1990. 12 pp. Changes in Family Finances from 1983 to 1989: Evidence from 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- the Survey of Consumer Finances. 1/92. VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by U.S. International Transactions in 1991. 5/92. Gregory E. Elliehausen and John D. Wolken. September 1990. 35 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Maps of the Federal Reserve System 1 9 BOSTON MINNEAPOLIS! 2 * 7 « • NEW YORK 12 CHICAGO! CLEVELAND • PHILADELPHIA • SAN FRANCISCO 10 4 • KANSAS CITY! RICHMOND sf LOUIS 5 8 6. ATLANTA 11 „• DALLAS ALASKA HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts Commonwealth of Puerto Rico and the U.S. Virgin by number and Reserve Bank city (shown on both Islands; the San Francisco Bank serves American pages) and by letter (shown on the facing page). Samoa, Guam, and the Commonwealth of the In the 12th District, the Seattle Branch serves Northern Mariana Islands. The Board of Governors Alaska, and the San Francisco Bank serves Hawaii. revised the branch boundaries of the System most The System serves commonwealths and terri- recently in December 1991. tories as follows: the New York Bank serves the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 1-A 2-B 3-C 4-D 5_E Baltimore Pittsburgh \V / Charlotte NH • Cincinnati Buffalo • ^ MA I CT v NJ NY u BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H • Nashville WL "I MO • J ^Louisville 1A Detroit • L/TN Jacksonville IN • Memphis • I' New Orleans MS Littlf ) Rock I Miami ATLANTA CHICAGO ST. LOUIS 9-1 MT . 1 ND • Helena mn Ml 1 SD • Wl 1 MINNEAPOLIS 10-J 12-L Omaha • Denver Oklahoma City KANSAS CITY 11-K J TX Salt Lake City NM / • P H LA EL Pas o r Y ^L —^ ^VHouston • Los Angeles • t • San Antonio HAWAn DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Jerome H. Grossman Richard F. Syron Warren B. Rudman Cathy E. Minehan NEW YORK* 10045 Maurice R. Greenberg William J. McDonough To be announced James H. Oltman Buffalo 14240 Joseph J. Castiglia James O. Aston PHILADELPHIA 19105 James M. Mead Edward G. Boehne Donald J. Kennedy William H. Stone, Jr. CLEVELAND* 44101 A. William Reynolds Jerry L. Jordan G. Watts Humphrey, Jr. Sandra Pianalto Cincinnati 45201 To be announced Charles A. Cerino1 Pittsburgh 15230 To be announced Harold J. Swart1 RICHMOND* 23219 Henry J. Faison J. Alfred Broaddus, Jr. Claudine B. Malone Jimmie R. Monhollon Baltimore 21203 To be announced Ronald B. Duncan1 Charlotte 28230 To be announced Walter A. Varvel1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Leo Benatar Robert P. Forrestal Hugh M. Brown Jack Guynn Donald E. Nelson1 Birmingham 35283 To be announced Fred R. Herr1 Jacksonville 32231 To be announced James D. Hawkins1 Miami 33152 To be announced James T. Curry III Nashville 37203 To be announced Melvyn K. Purcell New Orleans 70161 To be announced Robert J. Musso CHICAGO* 60690 Richard G. Cline Silas Keehn Robert M. Healey William C. Conrad Detroit 48231 To be announced Roby L. Sloan1 ST. LOUIS 63166 Robert H. Quenon Thomas C. Melzer John F. McDonnell James R. Bowen Little Rock 72203 To be announced Karl W. Ashman Louisville 40232 To be announced Howard Wells Memphis 38101 To be announced John P. Baumgartner MINNEAPOLIS 55480 Gerald A. Rauenhorst Gary H. Stern Jean D. Kinsey Colleen K. Strand Helena 59601 To be announced John D. Johnson KANSAS CITY 64198 Burton A. Dole, Jr. Thomas M. Hoenig Herman Cain Henry R. Czerwinski Denver 80217 To be announced Kent M. Scott Oklahoma City 73125 To be announced David J. France Omaha 68102 To be announced Harold L. Shewmaker DALLAS 75201 Cece Smith Robert D. McTeer, Jr. Roger R. Hemminghaus Tony J. Salvaggio El Paso 79999 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith, III1 San Antonio 78295 To be announced Thomas H. Robertson SAN FRANCISCO 94120 James A. Vohs Robert T. Parry Judith M. Runstad Patrick K. Barron Los Angeles 90051 To be announced John F. Moore1 Portland 97208 To be announced E. Ronald Liggett1 Salt Lake City 84125 To be announced Andrea P. Wolcott Seattle 98124 To be announced 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

Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve scription. For further information regarding a System makes some of its statistical releases avail- subscription to the economic bulletin board, able to the public through the U.S. Department of please call (202) 482-1986. The releases transmitted Commerce's economic bulletin board. Computer to the economic bulletin board, on a regular basis, access to the releases can be obtained by sub- are the following: Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z.7 Flow of Funds Quarterly 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 127, 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 lo Business A Consumer's Credit Guide to for Women, Mortgage Minorities, and Lock-Ins Smalt Businesses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis