Federal Reserve Bulletin, 1994-03

VOLUME 80 • NUMBER 3 • MARCH 1994 FEDERAL RESERVE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • 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 199 MONETARY POLICY REPORT TO THE age point to 83.1 percent, which is 2.2 percent- CONGRESS age points above the year-ago level but 1.7 percentage points below the 1988-89 Nineteen ninety-three turned out to be a favorpeak. able year for the U.S. economy, with notable gains in real output, declines in joblessness, and a further small drop in the rate of infla- 230 STATEMENT TO THE CONGRESS tion. Financial conditions conducive to growth Alan Greenspan, Chairman, Board of Goverprevailed throughout 1993 and gave considernors, identifies the broad considerations that able impetus to activity. With the Federal will likely shape the policy decisions of the Reserve keeping reserve market pressures un- Board in the weeks and months ahead and changed, short-term interest rates held steady says that the foundations of the economic during the year at unusually low levels, espeexpansion are looking increasingly well encially when measured relative to inflation or trenched but that short-term interest rates are inflation expectations. In addition, long-term abnormally low in real terms and will have to rates declined further, partly in response to be moved to a more neutral stance, before the actions taken by the Congress and the Admin- Joint Economic Committee of the U.S. Conistration to put the federal deficit on a more gress, January 31, 1994. favorable trend. i i 234 ANNOUNCEMENTS 220 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION SINCE 1990: Resignation of David W. Mullins, Jr. as Vice A REVISION Chairman and as a member of the Board of Governors. The Federal Reserve's index of industrial production and the related measures of capacity Retirement of Wayne D. Angell as a member and capacity utilization have been revised. of the Board of Governors. The effect on total production was very small. Statement by Chairman Greenspan on the res- Growth of total industrial capacity is estiignation of Vice Chairman Mullins and the mated to have been about a quarter of a perretirement of Governor Angell. cent per year higher in 1992 and 1993 than previously reported. As a result, the rate of Appointment of new members to the Concapacity utilization for the fourth quarter of sumer Advisory Council and designation of 1993 has been revised down more than half a a new chairman and vice chairman of the percentage point. council. Preliminary figures available on the operating 227 INDUSTRIAL PRODUCTION income of the Federal Reserve Banks. AND CAPACITY UTILIZATION FOR JANUARY 1994 Appointment of new Class C directors at seven Federal Reserve Banks. Industrial production rose 0.5 percent in January, following an upwardly revised gain of Thirty-day extension of the comment period 0.9 percent in December. The utilization of on a proposal to amend Regulation M; thirtytotal industrial capacity advanced 0.2 percent- day extension of the comment period on pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

posed changes to Regulation BB; thirty-day A3 GUIDE TO TABULAR PRESENTATION extension of the comment period on a pro- A4 Domestic Financial Statistics posed amendment to Regulation DD; publica- A45 Domestic Nonfinancial Statistics tion of a proposed official staff commentary A53 International Statistics on Regulation DD. Publication of revised lists of over-the- A69 GUIDE TO STATISTICAL RELEASES AND counter stocks and of foreign margin stocks. SPECIAL TABLES Errata in Bulletin table. A70 INDEX TO STATISTICAL TABLES Publication of the Annual Statistical Digest, 1992. All BOARD OF GOVERNORS AND STAFF 241 LEGAL DEVELOPMENTS A74 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS Various bank holding company, bank service corporation, and bank merger orders; and A76 FEDERAL RESERVE BOARD pending cases. PUBLICATIONS 267 MEMBERSHIP OF THE BOARD OF A78 MAPS OF THE FEDERAL RESERVE GOVERNORS OF THE FEDERAL SYSTEM RESERVE SYSTEM, 1913-94 A80 FEDERAL RESERVE BANKS, BRANCHES, List of appointive and ex officio members. AND OFFICES A1 FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of January 26, 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress Report submitted to the Congress on Febuary 22, more subdued readings thereafter. The performance 1994, pursuant to the Full Employment and Bal- of the U.S. economy stood in sharp contrast to the anced Growth Act of 19781 continued sluggish growth in many of the other industrial countries and helped to buoy the tradeweighted value of the dollar on foreign exchange markets. MONETARY POLICY AND THE ECONOMIC OUTLOOK In conducting policy through 1993, the Federal Open Market Committee recognized that it was Nineteen ninety-three turned out to be a favorable maintaining a very accommodative stance in year for the U.S. economy, with notable gains in reserve markets. Reserve conditions had been eased real output, declines in joblessness, and a further to this degree over the preceding four years to small drop in the rate of inflation. Financial condi- counter the effect of some unusual factors restraintions conducive to growth prevailed throughout the ing aggregate demand. The Committee recognized year and gave considerable impetus to activity. that as these forces abated, short-term interest rates With the Federal Reserve keeping reserve market would likely have to rise to forestall inflationary pressures unchanged, short-term interest rates held pressures that would eventually undermine the steady during the year at unusually low levels, expansion. especially when measured relative to inflation or Toward the end of 1993 and into early 1994, inflation expectations. In addition, long-term rates incoming data on the economy and credit flows declined further, partly in response to actions taken have increasingly conveyed a picture of considerby the Congress and the Administration to put the able underlying strength. The marked speedup of federal deficit on a more favorable trend. growth in the economy has been reducing spare Against this backdrop, households and busi- capacity, as is evident in the recent declines in nesses were able to take further steps to reduce the unemployment and increases in capacity utilization burden of servicing debt, and more expansive atti- rates in industry. Moreover, while movements in tudes toward spending and the use of credit seemed broadly based price indexes have remained relato take hold. Spending in the interest-sensitive sec- tively favorable, there also have been undercurtors of the economy surged ahead, with particularly rents suggesting that the process of disinflation large advances in residential investment, business might be stalling out. In particular, after slowing outlays for fixed capital, and consumer durable considerably in 1992, nominal increases in hourly goods. The growth of real GDP picked up sharply compensation—comprising wages and benefits— in the second half, and the increases for all of 1993 fell no further in 1993, and long-term inflation cumulated to about 23/4 percent according to initial expectations remain stubbornly above recent estimates. In the labor market, employment moved inflation rates. Also, commodity prices generally up at a moderate pace, and the unemployment rate have firmed in recent months. dropped almost a percentage point over the year. Earlier this month, the Federal Reserve con- Measured by the consumer price index, the rate of cluded that the weight of the evidence indicated inflation edged lower last year, as unfavorable that undiminished monetary stimulus posed the reports in the first few months of 1993 gave way to threat that capacity pressures would build in the foreseeable future to the point where imbalances would develop and inflation would begin to pick 1. The charts for the report are available on request from Publi- up. At its February 1994 meeting, the Federal Open cations Services, Board of Governors of the Federal Reserve Sys- Market Committee determined that it was time to tem, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin • March 1994 move to a slightly less accommodative stance. sentative of the pace of nominal spending than was While the discount rate remained at 3 percent, the evident in the longer historical record. In 1993, federal funds rate edged up to trade around 3V4 per- nominal GDP grew a shade more than 5 percent, or cent, a little above the prevailing rate of inflation. 33A percentage points above the rate of expansion Strength in spending last year was supported by of M2 and 4Vi percentage points above that of M3. increased borrowing by both households and busi- Most of the increase in the broad aggregates nesses. Continuing declines in a number of interest was recorded in their Ml component, which grew rates, which sparked considerable refinancing of IOV2 percent in 1993, as low money market and existing obligations, helped to trim debt service deposit interest rates provided little reason to forgo burdens for both sectors, undoubtedly facilitating the liquidity of transaction deposits. At times durthe pickup in borrowing and spending. Indicators ing the year, declines in longer-term market rates of financial stress, including loan default rates and produced waves of mortgage refinancing, an activbankruptcy filings, took a decided turn for the ity that is associated with temporary flows through better in 1993. Borrowing by households was the transaction deposits that are counted in Ml. In robust enough to raise the ratio of debt to dispos- addition, the currency component expanded at able income; business debt, held down in part by about the same rate as the Ml total, spurred by equity issuance, declined relative to income. The considerable demands from abroad. The doubletotal debt of all nonfinancial sectors is estimated to digit expansion of Ml deposits pushed reserves up have grown about 5 percent last year, the same as at a 12V2 percent rate in 1993, while the monetary in 1992, as a diminution of the net funding needs of base, which includes reserves and currency, the federal government was about offset by the increased IOV2 percent, the same rate as was posted pickup in private demand. This growth placed the in the previous year. debt aggregate in the lower half of its 4 percent to 8 percent monitoring range. The growth of M2 slowed in 1993, albeit consid- Money and Debt Ranges for 1994 erably less than the deceleration in nominal GDR For the year, M2 advanced IV2 percent, placing it a At its July 1993 meeting, the Committee provisionlittle above the lower bound of its 1 percent to ally chose the same ranges for 1994 as it had 5 percent annual growth cone. M3 expanded V2 per- established for 1993—1 percent to 5 percent for cent, the same pace as in 1992 and a bit above the M2 and 0 percent to 4 percent for M3 and a lower bound of its 0 percent to 4 percent annual monitoring range of 4 percent to 8 percent for the range. The ranges had been adjusted down by the domestic nonfinancial debt aggregate. At that time, Federal Open Market Committee during 1993. The the Committee noted that disturbances to the historadjustments were technical in nature and reflected ical relationships between the aggregates and the Committee's judgment as to the extent of the spending required that the actual determination of ongoing distortions of financial flows relative to these ranges for 1994, in February of this year, be historical patterns and of consequent increases in made in light of additional experience and analysis. velocities—that is, the ratios of nominal GDP to As noted above, the velocities of M2 and M3 money. increased further in 1993, but at a slower rate than The special factors shaping the growth of the in the previous year. This deceleration might indimonetary aggregates included a marked preference cate that the forces that had distorted the aggreby borrowers for capital market financing rather gates over the past few years, while still potent, than bank loans and a configuration of market were beginning to wane. The yield curve, although returns that enticed investors away from the tradi- quite steep, now offers investors less inducement to tional financial products offered by depositories. move outside M2 in search of better returns than at Bond and stock mutual funds were the primary any time in the past three years. Additionally, firms, beneficiaries of this shift, with inflows into such having strengthened their financial positions, may funds in 1993 setting a new record. This continuing feel more comfortable taking on shorter-term obliredirection of credit flows has rendered the move- gations and, therefore, may direct more of their ments of the broad monetary aggregates less repre- business to depositories. Banks, which are better Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 201 capitalized and whose assets are more liquid, 1. Ranges for growth of monetary and debt aggregates1 should be in a strong position to meet those needs. Percent Still, capital markets will provide attractive alterna- Aggregate 1992 1993 1994 tives to the depository sector, suggesting that the forces tending to divert funds from depositories— M2 2V2-6V2 1-5 1-5 M3 1-5 0-4 0-4 and to raise the velocities of the monetary Debt2 41/2-8V2 4-8 4-8 aggregates—will continue to be important. How- 1. Change from average for fourth quarter of preceding year to average ever, the strength of these forces, and whether or for fourth quarter of year indicated. Ranges for monetary aggregates are targets; range for debt is a monitoring range. how quickly they might be abating, remain difficult 2. Domestic nonfinancial sector. to judge. Against this background, the Federal Open Market Committee at its most recent meeting eager lenders should all act to boost the expansion reaffirmed the annual growth ranges for the money of nonfederal debt. Overall, the debt of the nonand credit aggregates that it had chosen provisionfinancial sectors is expected to grow again at about ally last July (table 1). The annual ranges appear the pace of nominal income. to be sufficiently wide to encompass growth of M2 and M3 consistent with Committee members' expectations for nominal income under a variety of Economic Projections for 1994 alternatives for the behavior of the velocities of the aggregates. If the forces depressing the demand for In general, the governors and Reserve Bank presimoney relative to income were to persist unabated dents anticipate that 1994 will be another year of in 1994, M2 and M3 might be in the lower portion progress for the economy, with low inflation and of their cones; should M2 and M3 move closer to financial market conditions continuing to provide a their former alignments with spending—buoying setting conducive to sustaining moderate economic the demands for those aggregates and depressing growth and rising employment opportunities. their velocities—then outcomes in the upper por- The Federal Reserve officials' forecasts of real tion of the ranges would be expected. The Commit- GDP growth over the four quarters of 1994 span a tee will watch the monetary aggregates closely range of 2x/i percent to 33A percent, with the central during the course of the year for evidence on tendency of the forecasts being 3 percent to unfolding economic and financial conditions. 3V4 percent (table 2). The governors and Reserve Given uncertainties about velocity behavior, how- Bank presidents anticipate that the rise in real GDP ever, that information will necessarily be assessed will be accompanied by a further increase in labor in combination with a variety of other financial and productivity. Nonetheless, employment gains are economic indicators as the Committee formulates expected to be sufficient to bring about some furpolicy. Through 1994, as was true last year, the Committee's primary concern will be to foster financial conditions that help contain price pressures and sustain economic expansion, and it will 2. Economic projections of FOMC members and have to assess the rates of money growth consistent nonvoting Reserve Bank presidents for 1994 with these objectives as the year goes on. Percent Debt growth, which has moved in closer align- Measure Range Central tendency ment with nominal income over the past few years than have the monetary aggregates, will again be Change, fourth quarter to fourth quarter1 monitored in light of a 4 percent to 8 percent Nominal GDP 43/4-7»/2 5'/2-6 Real GDP 2»/2-33/4 3-3'/4 annual range. With the federal sector's demands on Consumer price index2 2'/4-4 About 3 the pool of saving diminishing, the Committee Average level, fourth quarter envisions that an unchanged range would be associ- Unemployment rate3 6Vi-63A 6!/2-63/4 ated with some pickup in borrowing by the private 1. Change from average for fourth quarter of preceding year to average sector. Healthier balance sheets, lighter debt ser- for fourth quarter of year indicated. vice burdens, heavier capital spending, and more 2. All urban consumers. 3. Civilian labor force. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Federal Reserve Bulletin • March 1994 ther reduction in the degree of labor market slack will be less strong and less pervasive than they over the four quarters of the year. Forecasts of the have been recently. unemployment rate in the fourth quarter of 1994 The central tendencies of the forecasts of GDP span a range of 6V2 percent to 6% percent. Because growth, unemployment, and inflation are quite simof changes in survey design, a comparable rate for ilar to the projections put forth by the Administrathe fourth quarter of last year is not available; tion in its recent reports. Moreover, insofar as the however, the Bureau of Labor Statistics has esti- Administration's numbers were predicated, in part, mated that the fourth-quarter rate would have on the assumption that short-term interest rates exceeded 7 percent on the new basis. would rise modestly in 1994, the recent tightening The sectoral composition of growth in 1994 may action by the Federal Reserve does not appear to be well resemble that of 1993. The financial adjust- inconsistent with the Administration's outlook. ments of recent years have left households better Prospects for sustained growth over the longer positioned and more willing to boost spending. run have been bolstered by policy actions on a Moreover, with employment rising, real income number of fronts. Considerable work remains to be growth should be supportive of increased consumer done, however. Although recent fiscal measures expenditures in the coming year, despite the higher have been helpful in bringing about declines in the taxes confronting some households. Business federal budget deficit, the Congress and the Admininvestment seems likely to be pushed ahead by istration still must deal with some difficult issues to ongoing efforts to modernize and by further ensure that the deficit is kept on a downward course declines in computer prices. By contrast, further through the latter part of the 1990s and into the cuts in federal outlays for defense likely will con- next century. In the area of trade policy, the tinue to be a factor restraining the growth of aggre- nation's long-standing support of an open world gate demand. With the passage of time, the more trading system was reaffirmed this past year in the accommodative monetary policies now in place in form of passage of the North American Free Trade a number of countries, together with the moderate Agreement and the agreement in the Uruguay fiscal stimulus in Japan, are likely to lead to a Round—actions that will yield important benefits gradual pickup in the rates of growth of foreign over time not only to the United States but also to industrial countries and U.S. exports. However, its trading partners. Nonetheless, serious obstacles U.S. imports from abroad will likely continue to to free trade remain. On a wide range of regulatory move up at a brisk pace. Net exports of goods and issues, the Congress and the Administration face services thus may decline somewhat further, albeit decisions that have the potential to promote—or to at a slower rate than they have over the past year. damage—the flexibility in labor and product mar- The majority of the governors and Bank presi- kets and the processes of innovation and investdents expect inflation in 1994 to run a shade higher ment that are so critical to long-run economic than in 1993. Most of their forecasts for the rise in progress. In the area of monetary policy, the chalthe consumer price index are close to 3 percent, lenge is to build on the favorable price perforalthough the full range of forecasts extends from a mance of late in a situation in which the economy low of 2VA percent to a high of 4 percent. Several will likely be operating closer to full capacity than developments are likely to work against better it has in recent years. With success in keeping the inflation performance in 1994. In agriculture, a economy on course toward the long-run goal of poor harvest in 1993 has left some crops in very price stability, the prospects for sustained expantight supply, and the risk of unfavorable food price sion will be greatly enhanced. developments is greater than it has been in recent years. In addition, although the future course of energy prices is uncertain, a repeat of last year's THE PERFORMANCE declines, which helped to hold down the overall OF THE ECONOMY IN 1993 CPI, cannot be counted on. More fundamentally, the recent narrowing of the degree of slack in the The economy recorded significant gains in 1993, labor and product markets suggests that competilifted, as in 1992, by a surge in activity in the latter tive pressures damping wage and price increases part of the year. Job creation picked up, and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 203 unemployment rate fell appreciably. Inflation con- 1991 and 1992. Price increases were damped last tinued to trend lower. year by falling oil prices, near-stable prices for The rise in real GDP over the year amounted to non-oil imports, and a further rise in labor produc- 2.8 percent, according to the Commerce Depart- tivity, which held down production costs in the ment's first estimate. For a second year, the growth domestic economy. of activity was propelled chiefly by rapid gains in the investment outlays of households and businesses. Households boosted their purchases of The Household Sector homes and motor vehicles considerably, and spending for household durables also rose rapidly. Busi- Consumer spending recorded a second year of brisk ness investment in computers continued to grow at growth in 1993. Support for the rise in expendian extraordinary pace in 1993, and outlays for tures came from declines in interest rates and modother types of capital equipment strengthened. erate increases in real incomes. Household balance Investment in nonresidential structures, which had sheets continued to strengthen in 1993 and debt gone through a protracted decline in the latter part servicing burdens diminished, easing the financial of the 1980s and early 1990s, rose moderately last strains that had inhibited spending earlier in the year. Bolstered by the gains in these sectors, the 1990s. four-quarter rise in the final purchases of house- In real terms, the 1993 advance in personal conholds and businesses amounted to about 5 percent sumption expenditures amounted to about 3 perin real terms in 1993, matching the large 1992 rise. cent, measured to the year's fourth quarter from the Not since the 1983-84 period had private final fourth quarter of the previous year. After surging in purchases exhibited a comparable degree of late 1992, growth of real outlays slowed in the first strength. quarter of 1993. Whatever tendency there may The increase in private spending in 1993 was have been for a "payback" after a period of unusuaugmented by a pickup in the spending of state and ally rapid growth was reinforced by a severe latelocal governments, especially for construction. By winter storm on the East Coast, which temporarily contrast, real federal purchases of goods and hurt retail sales. Thereafter, spending proceeded at services—the part of federal spending that is a relatively strong pace over the remaining three included in GDP—fell sharply, as outlays for quarters of the year. national defense continued to trend lower. The Consumer expenditures for motor vehicles federal budget deficit declined somewhat in fiscal increased 6 percent in real terms over the four 1993 but remained quite large both in absolute quarters of 1993, after rising 9 percent the previous terms and relative to nominal GDP. The combined year. The advance in expenditures continued to deficit in the operating and capital accounts of state come partly from the replacement needs of individand local governments increased further. uals who had put off buying vehicles earlier in Growth of the economy continued to be signifi- the 1990s, as well as from growth in consumers' cantly influenced in 1993 by the changing patterns desired stock of vehicles. Increasingly, buyers have of transactions with foreign economies. The weak- opted for vans, light trucks, and other vehicles ness of activity in a number of foreign countries instead of cars, and annual sales of these vehicles that are major trading partners of the United States in 1993 reached the highest level on record. Car tended to slow the rise of U.S. exports of goods and sales also rose, but they remained well below previservices. At the same time, a significant portion of ous highs. Data for January of this year showed the rise in domestic spending in this country contin- strong gains in the unit sales of both cars and ued to translate into rapid increases in imports. Net trucks. exports of goods and services thus fell for the Expenditures for a number of other types of second year in a row, after a run of several years in durable goods also rose rapidly in 1993. Outlays which real export growth had outpaced the growth for furniture and appliances scored further hefty of real imports by a considerable margin. gains, in conjunction with sharp increases in sales The CPI rose 2.7 percent over the four quarters of new and existing homes. Consumer purchases of of 1993, after increases of about 3 percent in both home computers and other electronic equipment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 Federal Reserve Bulletin • March 1994 remained on a steep uptrend. In total, outlays for and consumer purchases of durable goods are risdurable goods other than motor vehicles increased ing rapidly. In effect, households have been holdnearly 9 percent over the year, after a rise of ing part of their saving in the form of consumer 10 percent in 1992. Other types of consumer expen- durables, which, at the time of purchase, are ditures, which typically exhibit less cyclical varia- counted fully as consumption in the national tion than do outlays for durables, rose moderately, accounts, but which in reality will yield households on balance, during 1993. Consumer purchases of a flow of services over time. nondurable goods increased about 13A percent, Consumer reliance on credit picked up in 1993. after a jump of more than 3V2 percent in 1992. The volume of consumer credit outstanding rose Spending for services rose 23A percent during 1993, 53A percent during the year, after three years in the same increase as reported for the previous year. which credit growth had been quite subdued. Real income continued to advance in 1993, Growth of consumer credit was especially rapid in although its trend was masked by tax consider- the final quarter of the year—about 9 percent at an ations that caused a sizable volume of bonuses that annual rate. The mortgage debt of households rose would have been paid to workers in early 1993 to about 7 percent from the end of 1992 to the end of be shifted into the latter part of 1992. Abstracting 1993, slightly more than in either of the two previfrom these shifts in timing, the beneficial effects of ous years. continued economic expansion showed through in Continued improvement was evident on the asset most categories of income, much as they had side of household balance sheets in 1993. As in in 1992. Wage and salary accruals, a measure of 1992, the total nominal value of household assets income as it is earned rather than as it is disbursed, increased at a pace moderately faster than the rate rose about 4l/i percent in nominal terms over the of inflation. Large increases in stocks and bonds four quarters of 1993, considerably outpacing the boosted the nominal holdings of financial assets, rate of inflation for the second year in a row. more than offsetting a reduction in the aggregate Further gains also were reported over the course of holdings of deposits and credit market instruments. 1993 in dividends and in the income of proprietors, The nominal value of tangible assets was lifted by both farm and nonfarm. Transfer payments, which heavy investment in consumer durables and resitend to vary inversely with the state of the econ- dential structures and by a rise in the average price omy, slowed in 1993 after rising at rates of 10 per- of existing residential properties. With the jump in cent or more in each of the four previous years. growth of consumer credit and the slight pickup in Interest income, which had declined on net in 1991 the growth of home mortgage debt, household liaand 1992, edged up slightly over the four quarters bilities rose somewhat faster than in 1992. Noneof 1993. Because of the shift in timing of bonuses, theless, net worth appears to have increased, probagrowth of real disposable income in 1993 was less bly in real terms as well as in nominal terms. The than in 1992. However, the cumulative gain over incidence of financial stress among households the two-year period was about 6 percent, a clear diminished further in 1993, as delinquency rates on step-up from the performance of the three previous various types of household debt continued to years, when real income growth had averaged less decline, in some cases to the lowest levels since the than 1 percent per year. first half of the 1970s. According to survey data, The personal saving rate—measured as the per- households' own assessments of their financial sitcentage of nominal after-tax income disbursements uations have improved of late, with some survey that are not used for consumption or other readings the most upbeat in more than three years. outlays—declined nearly 2 percentage points, on Residential investment increased about 8 percent net, over the course of 1993. However, the saving in real terms over the four quarters of 1993, buildrate in late 1992 had been temporarily elevated by ing on the 18 percent rise of 1992. As in 1992, the aforementioned speedup of bonus payments. most of the advance came from increased construc- Looking through that blip of late 1992, a down- tion of new single-family homes. The construction ward drift still is evident in the saving rate from of multifamily housing continued to be adversely mid-1992 to the end of 1993. Such a pattern is not affected by a persistent overhang of vacant rental uncommon when economic recovery is taking hold units. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 205 In the single-family market, impetus for activity modestly thereafter, despite restoration of tax credcontinued to come mainly from declines in mort- its for low-income units. gage interest rates, which by autumn had dropped to the lowest levels in more than two decades. Fairly sharp declines in mortgage interest rates The Business Sector took place early in the year, but the effect of those declines on housing activity was apparently short- The year 1993 saw appreciable gains in most circuited for a time by a number of influences. A important barometers of business activity. Output severe blizzard on the East Coast in mid-March of the nonfarm business sector increased 33/4 pertemporarily waylaid the start-up of construction in cent during the year, the same as the rise during that region, and a huge run-up in lumber prices 1992. Profits rose further, and business balance during late winter also may have discouraged some sheets continued to strengthen. Capital spending new construction for a while. Concerns about the surged. possible loss of jobs perhaps continued to deter In the industrial sector, production rose 4lA persome potential homebuyers. Other buyers may sim- cent during 1993, the largest advance in six years. ply have been holding back, waiting to see how far Gains of at least moderate proportions were rates eventually would fall. reported in each quarter of 1993. The gain in the In any event, the effects of the drop in mortgage year's final quarter was quite large—on the order rates began to show through with greater force over of 6V2 percent at an annual rate. Output of business the summer and fall, and considerable strength had equipment held to a strong uptrend throughout the emerged by year-end in all the major indicators of year, as did the production of materials that are single-family housing activity. Sales of existing used as inputs in the durable goods industries. homes rose almost without interruption from April Output of construction supplies rose moderately in on. By the fourth quarter they had climbed to the the first half of the year and at a stronger pace in highest level on record (the series goes back to the second half. Motor vehicle assemblies also rose 1968). Sales of new homes proceeded in somewhat appreciably, with strength early in 1993 and in the choppier fashion from month to month, but by the year's final quarter more than offsetting a stretch of end of the year they had moved well toward the sluggishness through the middle part of the year. upper end of their historical range. Housing con- By contrast, output of consumer goods other than struction also strengthened. The number of single- motor vehicles rose only modestly, and production family starts increased about 18 percent from the of defense and space equipment fell 9V2 percent second quarter to the fourth quarter, rising to the further, extending a downward trend that began in highest quarterly level since 1979. Although hous- 1987. In January of this year, industrial production ing starts fell sharply in January, the decline proba- rose 0.5 percent. Severe winter weather and the bly was in large measure a reflection of the unusu- California earthquake cut into the growth of proally bad weather across the country that month. duction in the manufacturing sector in January, but According to survey data, consumers' assessments the output of utilities was boosted by increased of home-buying conditions continued to be very heating requirements. Underlying support for upbeat in January and early February. Builders' industrial production is coming from large gains in ratings of the market edged down a touch in early new orders that were reported toward the end of 1994 but remained at a very favorable level. 1993. Activity in the multifamily housing market The amount of spare capacity in the industrial remained depressed in 1993. In the mid-1980s, tax sector continued to diminish in 1993 and early incentives and relatively easy availability of credit 1994. The utilization rate in January was 83.1 perencouraged overbuilding in many locales. The pro- cent. The rate has increased more than two percentportion of multifamily rental units that were vacant age points during the past year, to the highest level soared and has remained high subsequently, even since the second half of 1989. In manufacturing, as construction of multifamily units has dwindled. capacity use in primary processing industries has Stents of these units reached the lowest levels on been running above its long-run average for more record early in 1993, and they picked up only than a year, and the rate of utilization in advanced Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Federal Reserve Bulletin • March 1994 processing industries recently has moved up into Spending for communication equipment also line with its long-run average. advanced sharply, as did real outlays for many Corporate profits, which had surged in 1992, other types of machinery and equipment. Diminincreased an additional 6V2 percent over the first ished slack in many industries and expectations of three quarters of 1993 and appear to have risen continued business expansion were among the chief further in the year's final quarter. Financial institu- factors giving rise to the increase in these outlays. tions in general continued to benefit in 1993 from Ample cash flow from internal operations provided the persistence of a relatively wide margin between a ready source of finance. their cost of funds and the interest rates on their Commercial aircraft was the most notable excepassets; insurers' profits suffered less drag from tion to the general upward trend in equipment natural disasters than in 1992, the year of hurricane spending. Outlays for aircraft plunged in the sec- Andrew. The profits of nonfinancial corporations ond half of 1993, and survey data suggest that moved up slightly further over the first three quar- spending will remain weak in 1994. The reductions ters, boosted by the rise in the volume of output in outlays had been foreshadowed by earlier deover that period. Operating profits per unit of out- clines in new orders for commercial aircraft, and put held fairly steady, close to the high level producers of aircraft have been scaling back their reached in the final quarter of 1992. Although operations for some time. nonfinancial corporations raised their prices by Business investment in structures rose nearly only a small amount over those three quarters, they 5 percent in 1993, the first annual increase since were able to maintain unit profit margins through 1989. Declines in the intervening years had cumucontinued tight control over costs. Gains in produc- lated to about 18 percent. Within the sector, divertivity restrained the rise in unit labor costs, and net gent trends were evident once again. Outlays for interest expenses per unit of output continued to the construction of office buildings fell for the sixth decline. consecutive year, to a level two-thirds below the Business fixed investment increased about peak of the mid-1980s. Several indicators suggest, 15 percent in real terms over the four quarters of however, that the worst of the decline in office 1993, after a rise of IV2 percent in 1992. A spectac- construction might be over. The rate at which real ular increase in outlays for office and computing outlays fell in 1993 was much smaller than the equipment accounted for about one-half of the declines of the three previous years. In addition, 1993 gain. Business expenditures for these items the national vacancy rate for office buildings, while increased more than 25 percent in nominal terms still quite high, moved down somewhat; improveover the year, the steepest annual gain since 1984, ment was most noticeable in suburban areas, where and the rise in real terms was greater still. Techno- vacancy rates previously had been the highest. The logical advances embodied in the latest computers value of contracts for construction of office buildmade them far more powerful than equipment that ing firmed over the course of 1993. Prices of office was at the forefront only a few years ago, and buildings continued to trend lower, but survey data highly competitive market conditions kept prices suggest that the rate of decline has eased in at least on a downward course. More real computing power some markets. thus continued to become ever more accessible, Investment increased for most other types of and the many businesses eager to boost labor pro- structures in 1993. Outlays for industrial structures, ductivity and overall operating efficiency provided which had declined sharply in 1991 and 1992, rose a huge market for the new products. about 8 percent, on net, over the four quarters of Excluding office and computing equipment, out- 1993. Outlays for commercial structures other than lays for capital equipment increased about 11 per- office buildings increased fairly briskly for a seccent in real terms during 1993, the biggest rise in ond year; by the fourth quarter, they had retraced ten years. Business expenditures for motor vehicles about 40 percent of the steep decline that took advanced about 13 percent, as investment in trucks, place during 1990 and 1991. Investment in drilling which had strengthened considerably in 1992, also rose in 1993, as incentives from rising prices climbed further. Factories producing heavy trucks for natural gas apparently offset the disincentives were operating at or near full capacity at year-end. associated with falling oil prices. Spending for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 207 other types of structures rose by a small amount in interest rates down, the portion of business cash the aggregate. flow required for the repayment of principal and Swings in business inventory investment played interest declined further in 1993. All this seemed to only a small role in the economy in 1993. Inven- augur well for sustained expansion of the business tory accumulation in the nonfarm business sector sector and the economy. picked up in the early part of the year, but thereafter, the rate of stockbuilding slowed. Accumulation for the year as a whole was of only modest The Government Sector proportions, especially when compared with the rates of buildup seen during previous business Federal purchases of goods and services, the porexpansions. Conceivably, the usual cyclical pat- tion of federal outlays that are included in GDP, fell terns in inventory change have been tempered to more than 6 percent in real terms over the four some degree by the more sophisticated inventory quarters of 1993. Real outlays for national defense, control procedures that have become widespread in which have been trending down since 1987, the business sector in recent years. Toward year- declined nearly 9 percent over the year. Growth of end, inventories appeared to be comfortably nondefense outlays fell slightly, on net, after fairly aligned with sales in most industries and were lean sizable increases in each of the three previous in some. Most notable among the latter were the years. The level of real federal purchases in the stocks of motor vehicles, which were drawn down fourth quarter of 1993 was down about 10 percent by production delays through the summer and from the peak of six years earlier. Real defense strength in sales through the latter part of the year. purchases dropped about 20 percent over that six- In view of those developments, producers of motor year stretch. vehicles have scheduled a further hefty rise in Total federal outlays, measured in nominal terms production for the current quarter, with assemblies in the unified budget, rose 2 percent in fiscal 1993, slated to move up to the highest quarterly rate in the smallest increase in six years. Outlays for more than fifteen years. defense fell about 2xh percent in nominal terms, In the farm sector, inventories declined in 1993. and net interest payments were down slightly—the Stocks were pulled down by weather-related reduc- first decline in that category since 1961. Net expentions in crop output, especially in parts of the ditures for deposit insurance, which had been Midwest, where the worst flood of the century slightly positive in 1992, were negative in fiscal caused millions of acres to be left idle and cut 1993, held down in part by delays in funding the deeply into yields on the acres that were planted. activities of the Resolution Trust Corporation. Fed- Inventories of a number of major field crops are in eral spending for income security slowed from the tight supply, in some cases the tightest since the rapid pace of 1991 and 1992, as economic expanmid-1970s. Farmers whose crops were hurt by sion led to a reduction in outlays for unemployweather suffered income losses in 1993, while the ment compensation and a less rapid rate of increase producers whose crops were not hurt benefited in outlays for food stamps. Growth in federal from rising prices. Total net farm income thus expenditures for Medicare and other health proappears to have held in the range of other recent grams also slowed, but their rate of increase continyears, at a level well within the extremes of either ued to exceed the growth of nominal GDP by a boom or bust. considerable margin. Trends in business finance remained favorable in Growth of federal receipts picked up a bit in 1993. Business expenditures for fixed capital and fiscal 1993, to a pace roughly matching that of inventories were financed almost entirely with nominal GDP growth. Combined receipts from funds generated internally, and, in the aggregate, individual income taxes and social insurance taxes, the relatively little external financing that did take which account for about 80 percent of total federal place came partly from positive net issuance of receipts, rose about Sxh percent, after a gain of equity. Growth of debt was slow, both in absolute 3 percent in fiscal 1992. Receipts from corporate terms and relative to the high rates of debt growth income taxes, which account for about half of the seen in the 1980s. With little growth in debt and remaining receipts, increased more than 17 percent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Federal Reserve Bulletin • March 1994 in fiscal 1993, after only a small gain in the previ- undertake more of this new construction in 1993 ous fiscal year. than they would have otherwise. Growth in other Taken together, the slowing of federal outlays types of state and local purchases continued to be and the pickup of receipts led to a decline in the fairly restrained in 1993. Employee compensation, size of the federal budget deficit in fiscal 1993, which makes up roughly two-thirds of state and after three years of sharp increases. The 1993 defi- local purchases, rose about llA percent in real cit amounted to $255 billion and was equal to terms during the year, the same as in 1992. 4.0 percent of nominal GDR The previous year, the Employment growth in the state and local sector deficit had amounted to $290 billion and was equal was slow by historical standards again in 1993, and to 4.9 percent of nominal GDR In fiscal 1989, increases in hourly compensation were relatively toward the end of the last economic expansion, the small. State and local purchases of goods rose only size of the deficit relative to nominal GDP had moderately. reached a cyclical low of 2.9 percent. In the state and local sector, receipts moved up about in step with the growth of nominal GDP in 1993, but state and local expenditures rose still The External Sector faster. In nominal terms, the increases in spending cumulated to a rise of about 63A percent over the The trade-weighted foreign exchange value of the four quarters of the year. State and local transfer U.S. dollar, measured in terms of the other Group payments to persons have slowed from the extraor- of Ten (G-10) currencies, rose nearly 6 percent on dinary rates of increase seen in the early 1990s, balance from December 1992 to December 1993. a reflection of improvement in the economy and The dollar's 1993 rise in real terms (that is, intensified efforts among state and local govern- adjusted for movements in relative consumer ments to tighten control over these types of outlays. prices) was slightly greater than its rise in nominal Nonetheless, the rate of rise in these payments terms, as U.S inflation exceeded weighted-average remained in excess of 10 percent in 1993. Nominal inflation in the other G-10 countries by about purchases of goods and services rose moderately, V2 percent. The dollar's rise continued into the but at a pace somewhat faster than that of 1992. early weeks of 1994, but by mid-February it had The deficit in the combined operating and capital fallen back to a level a bit below its average in accounts of state and local governments widened December 1993. further during the first three quarters of the year, The main factor behind the strengthening of the from an end-of-1992 level that already was quite dollar last year appears to have been the general sizable; in the fourth quarter, the deficit apparently downward revision in perceptions of the strength of shrank, but not by enough to fully retrace the economic activity in a number of foreign countries earlier increases. while activity in the United States seemed to be In real terms, purchases of goods and services by improving on balance, especially in the latter part state and local governments increased 3 percent of the year. The weakening of activity abroad conover the four quarters of 1993, after gains of about tributed to large declines in interest rates in the IV2 percent per year in both 1991 and 1992. State foreign G-10 countries, both in absolute terms and and local expenditures for structures rose more relative to levels of interest rates in the United than 9 percent in real terms over the year, accord- States. On average, foreign short-term rates fell ing to preliminary data. Some of the spending went nearly 3 percentage points relative to U.S. rates last for the repair or replacement of structures that had year, and foreign long-term rates fell about 1 perbeen damaged in recent natural disasters, such as centage point relative to U.S. rates. Foreign shortthe summer flooding in the Midwest. In addition, term rates have changed little on average during the efforts of state and local governments to cope the first few weeks of 1994, while long-term rates with the needs of growing populations prompted have edged higher. increased investment in schools, highways, and The dollar rose 8 percent against the mark and other state and local facilities. Low interest rates by similar amounts against other currencies in the probably convinced state and local officials to exchange rate mechanism (ERM) of the European Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 209 Monetary System during 1993. It appreciated a bit nese domestic economy. Over the latter part of the further, on balance, in early 1994. Potential existed year, as economic activity in Japan continued to for much greater divergence of dollar exchange weaken and Japanese interest rates moved lower, rates against these currencies as the result of a the dollar rose against the yen, partially offsetting widening of permitted fluctuation margins follow- its earlier decline. That uptrend was halted in Febing the ERM crisis last summer. Strains developed ruary 1994, however, in the face of renewed trade in the ERM in July and August on growing expec- tensions between the United States and Japan, and tations that weakness in the French economy and the dollar fell back close to the low reached in an anticipated recovery of the German economy August. would cause French authorities to reduce interest The dollar depreciated slightly in real terms on rates ahead of German rates. Growing pressure on average against the currencies of major U.S. tradthe French, Belgian, Danish, and Iberian currencies ing partners among developing countries in Latin led to massive foreign exchange intervention, sharp America and East Asia in 1993. The Mexican peso increases in short-term interest rates in those coun- rose 6 percent, despite a period of downward prestries, and in early August, a substantial widening of sure amid uncertainty about the outcome of the the ERM margins. Later, market pressures eased U.S. congressional vote on the North American and interest rates returned to their pre-crisis levels Free Trade Agreement as that vote drew near. The as it became clear that these countries would not rise in the peso's inflation-adjusted exchange value make use of the wider margins to ease policy, and has cumulated to nearly 35 percent since 1989, as the German economy showed signs of weaken- reflecting in part a strong inflow of capital from ing further, fiftf abroad stimulated by domestic reforms, declining The pound, which had depreciated sharply world interest rates, and the anticipated positive against the dollar in late 1992 after U.K. authorities influence of NAFTA on Mexico's real growth. The pulled it from the ERM and substantially lowered Brazilian cruzeiro rose fairly strongly in real terms interest rates, fell an additional 4 percent relative to against the dollar, as substantial nominal depreciathe dollar during 1993. The Italian lira depreciated tion of the cruzeiro did not keep pace with the even nearly 20 percent against the dollar last year, more rapid domestic inflation in that country. reflecting market concerns over political uncertain- Meanwhile, the Hong Kong dollar rose in real ties and massive budget deficits in Italy. Similar terms and the Taiwan dollar fell. concerns, although on a smaller scale, contributed Growth of real GDP in the major industrial counto the Canadian dollar's depreciation against the tries picked up somewhat, on average, during 1993 U.S. dollar of about 4 percent during 1993. from depressed levels in 1992. Growth was lifted The Japanese yen was the only currency of a as economic recoveries in Canada and the United foreign G-10 country to appreciate against the dol- Kingdom gained some momentum. However, outlar in 1993, rising on balance about 11 percent. The put in Japan and most of continental Europe dollar-yen exchange rate appeared to be subject to remained sluggish at best, showing either small two conflicting sets of pressures last year. During increases or small declines for most of the year. the first eight months of the year, the dollar depre- The weakness of real activity in the foreign Group ciated nearly 20 percent against the yen, as market of Six industrial countries put further downward attention appeared to be focused mainly on the pressure on CPI inflation, which receded to roughly rising Japanese external trade surplus and per- 2 percent on average in those countries last year. ceived political pressures from abroad, particularly Further declines in interest rates in most of these from the United States, to reduce this surplus. The countries during the past year should enhance the dollar reached a low of almost 100 yen per dollar prospects of recovery in the coming year. The last August. At that point, statements by U.S. offi- economies of the major developing countries in cials expressing concern over the implications of Asia continued to grow rapidly, fueled in part by the yen's strength for Japanese growth, accompa- exceptionally strong growth in China. Real growth nied by U.S. intervention support for the dollar, in Mexico fell to near zero, however, reflecting the appeared to shift the market's main focus from depressing effects of policy restraint aimed at conthese external considerations back toward the Japa- taining inflationary pressures and, for a time, grow- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin • March 1994 ing uncertainty about whether NAFTA would be net shipments of U.S. currency to foreigners, implemented. which are not recorded in the U.S. international The nominal U.S. merchandise trade deficit wid- accounts, contributed to the positive net errors and ened to more than $130 billion in 1993, compared omissions. with $96 billion in 1992. Imports grew much faster Net official capital inflows amounted to $48 bilthan exports, partly because the U.S. economic lion. G-10 countries accounted for part of the recovery gained momentum while economic inflows. In addition, various developing countries, growth in U.S. export markets was sluggish on particularly in Latin America, experienced large average. The appreciation of the dollar also tended private capital flows into their countries and added to depress real net exports. The current account substantially to their official holdings in the United worsened about in line with the trade deficit, mov- States. ing from a deficit of $66 billion in 1992 to nearly Net private capital inflows into the United States $105 billion at an annual rate over the first three were negligible in the first three quarters of 1993. quarters of 1993. Net service receipts and net However, reflecting the continued internationalizainvestment income receipts both remained little tion of financial markets, both inflows and outflows changed over this period. grew. U.S. net purchases of foreign securities U.S. merchandise exports grew 33A percent in reached a record $96 billion, about evenly divided real terms over the four quarters of 1993, based on between stocks and bonds. Most of these net purthe initial fourth-quarter estimate from the national chases were accounted for by Western Europe, income and product accounts. Exports changed lit- Canada, and Japan; developing countries in Asia tle, on net, over the first three quarters of the year and Latin America accounted for a small but growbut strengthened in the fourth quarter as shipments ing share of total U.S. net purchases of foreign of machinery and automotive products increased. stocks and bonds. Foreign private net purchases The growth of computer exports in real terms of U.S. government securities and corporate slowed from the very rapid pace of recent years bonds remained strong; foreign asset holders also but still posted an increase of more than 15 percent. resumed making net purchases of U.S. corporate Agricultural exports declined as a result of reduced stocks. In addition, capital inflows from foreign U.S. output in the 1993 crop year. By region of the direct investors in the United States resumed in the world, the rise in merchandise exports during 1993 first three quarters of 1993, while capital outflows was more than accounted for by increased ship- by U.S. direct investors abroad remained strong. ments to Canada, the United Kingdom, and Mexico. Shipments to the sluggish economies in continental Europe and Japan declined somewhat, while Labor Market Developments the growth of exports to developing countries in Asia slowed from the rapid pace of 1992. The labor market strengthened in 1993, as eco- Merchandise imports grew about 14 percent in nomic expansion began to translate more forcefully real terms during 1993. The growth in imports was into increased job creation. Payroll employment, a broadly based across commodity categories. Com- measure of jobs that is derived from a monthly puters accounted for one-third of the growth in real survey of establishments, rose almost 2 million terms, but imports of consumer goods, machinery, over the twelve months of the year. Although this automotive products, and industrial supplies all gain was only moderate compared with annual rose strongly as well. Import prices declined increases in many years of the 1970s and 1980s, it slightly during 1993, reflecting a sharp decline in was about twice the increase of 1992. The increase the price of oil imports. The average price of non- in employment in January of this year apparently oil imports rose only slightly, reflecting low infla- was held down by bad weather. tion abroad and the rise of the dollar. Hiring picked up in most major sectors in 1993. In the first three quarters of 1993, recorded net The number of jobs in retail and wholesale trade capital inflows balanced only part of the substantial increased about one-half million, the largest annual U.S. current account deficit, as net statistical errors rise since 1988. The number of jobs in finance, and omissions were positive and large. Sizable insurance, and real estate picked up a bit after a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 211 five-year period that had encompassed three years a full percentage point. Because of changes in the of sluggish growth and two years of unprecedented design of the monthly survey of households, the reductions. Construction employment rose 200,000 official rate reported for January of this year— after three years of sharp declines. 6.7 percent—is not comparable with the official The services industry added about 1.2 million rates for 1993 or previous years. However, the new jobs in 1993. More than one-third of the Bureau of Labor Statistics has indicated that, increase came at firms that supply services to other abstracting from the changes in survey design, the businesses. Of these firms, the ones exhibiting by unemployment rate probably fell in January, with far the most rapid growth were personnel supply estimates of the size of the decline ranging from firms—companies that essentially lease the ser- 0.1 percentage point to 0.3 percentage point. The vices of their employees to other businesses, usu- aim of the new survey is to achieve more precise ally on a temporary basis. Many companies requir- classification of individuals whose labor market ing additional labor apparently have been attracted situations may not have been accurately captured by the flexibility of such arrangements, as well as by the questions included in the old survey. by cost advantages, at least over the short run. Growth of the civilian labor force—the sum of Elsewhere in the services industry, health services persons who are employed and those who are lookcontinued to generate a substantial number of new ing for work—was relatively sluggish again in job opportunities in 1993, even though the gain 1993. The rise over the four quarters of the year was not quite as large as those of other recent was 1.2 percent, only slightly faster than the rate of years. Small to moderate employment gains also growth of the working-age population. Over the were reported during the year at firms supplying a past four years, labor force growth has averaged wide variety of other types of services. less than 1 percent per year, and the labor force - Manufacturing employment continued to decline participation rate has edged down slightly, on net. in 1993, but at a slower pace than in any of the Based on data from the old survey, the number of three previous years. Although manufacturers persons who desired work but did not seek it boosted output considerably, the gain was achieved because of a perceived lack of job openings mainly through another sizable rise in factory pro- changed little over the course of 1993. In addition, ductivity. Labor input in manufacturing reportedly the number of persons outside the labor force and increased only slightly, and the gain took the form not wanting a job rose about 0.8 percent during of a lengthened workweek rather than increased the year, pulled up in part by a sharp increase in the hiring. By the latter part of the year, the aver- number of retirees. Workers whose careers were age workweek in manufacturing had reached cut short by business restructurings and defense 413A hours, the longest since World War II. Hiring cutbacks probably augmented the normal flow of did pick up late in the year, however, and a further workers into retirement. Growth in the number of rise in the number of factory jobs was reported in persons not wanting a job because of attendance in January of this year. Reliance by manufacturers on school also increased during 1993, according to workers from personnel supply firms reportedly data from the old survey. To the extent that these has increased; because these workers are carried on individuals have been honing their job skills, their the payrolls of the personnel firms, actual labor lack of current participation in the labor force could input in manufacturing was greater than the data turn into a positive factor for the economy over the indicate. longer run. Significant improvement in labor market condi- The slowing of nominal increases in hourly comtions also was evident in data from the monthly pensation came to a halt in 1993. The employment survey of households. The measure of employment cost index for private industry—a labor cost meathat is derived from this survey rose 2Vz million sure that includes wages and benefits and covers over the twelve months of 1993, after an increase the entire nonfarm business sector—increased of about Wi million during the previous year. At 3.6 percent from December of 1992 to December the same time, the number of unemployed persons of 1993, about the same as the rise of the previous fell more than 1 million over the course of 1993, year. Wages rose 3.1 percent over the year, one-half and the civilian unemployment rate declined nearly percentage point more than in 1992, and the growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 Federal Reserve Bulletin • March 1994 of benefits slowed only a little, to 5.0 percent. from time to time during 1993; late in the year and Compensation gains picked up for workers in some early in 1994, these increases became more white-collar occupations, notably sales workers and widespread. Producer prices picked up somewhat managers. Slightly bigger gains than in 1992 also in January, but prices at the retail level were were realized by workers in some blue-collar occu- unchanged, on balance. pations. By contrast, the rate of compensation The patterns of price change for items other than growth held steady in service occupations and food and energy were more checkered in 1993 than edged down in some blue-collar occupations in they had been in 1992, a year when deceleration which fewer specialized skills are required. The was widespread among both commodities and seroverall rise in hourly compensation during 1993 vices. The CPI for commodities other than food exceeded the rise in consumer prices by about and energy rose only 1.6 percent over the four 1 percentage point. Hourly wage gains more than quarters of 1993 a percentage point less than in kept pace with inflation, and the value of benefits 1992. Within this category, the CPI for tobacco provided to workers by their employers continued fell 5 percent in 1993 after many years of large to rise rapidly in real terms. increases, as the inroads being made by generic Labor productivity continued to increase in 1993, brands in that market forced major suppliers to albeit less rapidly than in the earlier stages of the alter their basic pricing strategies. Prices of apparel cyclical expansion. According to preliminary data, rose less than 1 percent during 1993, an even output per hour in the nonfarm business sector rose smaller increase than in 1992. By contrast, the 1.5 percent during the year, after large increases in prices of motor vehicles moved up somewhat faster both 1991 and 1992. Although part of the gain in than in 1992; the price rise for trucks was the output per hour over this three-year period is no largest in recent years. The CPI for non-energy doubt a reflection of normal cyclical processes, the services increased 3.8 percent over the four quardata also seem to suggest that the longer-run trend ters of 1993, about the same as the rise during the in productivity is tilting up a bit more sharply than previous year. The index for medical care services in the 1970s and 1980s, a result of heavy invest- slowed for the third year in a row, but airfares rose ment by business in new information technologies, sharply for a second year. Price increases for other of the rising skill of workers in exploiting those services generally were little different from those technologies, and, perhaps, of the more quiescent in 1992, with small deceleration for some items inflation environment of recent years. With gains in and small acceleration for others. labor productivity offsetting part of the 1993 Food prices picked up in 1993. The consumer increase in compensation per hour, unit labor costs price index for food increased 2.7 percent over the in the nonfarm business sector increased just four quarters of the year, an acceleration of about a 1.3 percent, a shade less than in 1992. percentage point from the pace of the two previous years. Because price increases in those two previous years had been held down, in part, by unusually favorable supply developments in agriculture, Price Developments some pickup of food price inflation might have been in store for 1993 even had weather conditions Inflation edged down a bit further in 1993. The been no worse than average. In the event, the 2.7 percent rise in the CPI over the four quarters of weather was unusually bad. Severe winter weather the year was the smallest increase since 1986, and disrupted livestock production early in the year; the four-quarter rise of 3.1 percent in the CPI drought in the eastern states hurt crop production in excluding food and energy was the smallest that region during the summer; and flooding of increase in that measure in more than twenty years. historic severity in the Missouri and Mississippi At the same time, however, progress toward lower River basins cut deeply into output of some of the inflation was sporadic during the year, and the nation's major field crops. At retail, effects of the slowing of price increases was less widespread various supply disruptions showed through in the prices of meats, poultry, and fresh produce. Price than it had been in 1992. Scattered upward price increases for other foods, which account for by far pressures showed up in the commodity markets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 213 the larger share of total food in the CPI, showed In the markets for raw commodities and other almost no acceleration in 1993; most of the value primary inputs, scattered upward price pressures added in production of these other foods comes emerged from time to time during the first three from nonfarm inputs. quarters of 1993, and fairly widespread increases Consumer energy prices declined 0.4 percent were reported in the year's final quarter and into over the four quarters of 1993 after rising only early 1994. The producer price index for crude moderately in 1992. With world oil production materials excluding food and energy thus moved outstripping demand, crude oil prices fell sharply up sharply over the year, by about 10 percent in all. during the last three quarters of 1993, to levels in The weight of these inputs in GDP is quite small, December that were about 25 percent below those however, and in the absence of more general cost of a year earlier. Gasoline prices, after increasing in pressures, increases in their prices usually do not the early part of 1993, turned down in March and impart much upward thrust to the prices of finished fell for six additional months thereafter. The string goods. of declines was interrupted in October when fed- Inflation expectations, as reported in various sureral gasoline taxes were raised, but it resumed in veys of consumers and other respondents, flared up November and continued through year-end. Aver- for a time during 1993 but retreated in the latter age pump prices for the fourth quarter were about part of the year. According to one such survey, 4 percent below the level of a year earlier. Fuel oil conducted by the University of Michigan Survey prices fell about 3 percent over the same period. Research Center, the rate of price increase expected Prices of the service fuels—electricity and natural one year into the future moved up from an average gas—increased during 1993. The rise in electricity of 3.8 percent in the final quarter of 1992 to an prices over the year amounted to 1.7 percent, average of 4.7 percent in the third quarter of 1993. slightly less than the increase posted in 1992. Natu- The rise was fully reversed in the fourth quarter, ral gas prices rose nearly 5 percent for the second however. A similar but much less pronounced year in a row; consumption of natural gas has swing in expectations was evident in some other picked up in recent years, after trending lower surveys as well. The surveys have continued to through much of the 1970s and a large part of the show one-year expectations of price change run- 1980s. Since the end of last year, oil prices have ning somewhat higher than the actual increases of changed little, on net, as an upswing in prices recent years. Longer-run expectations of price during the first few weeks of 1994 has been change have remained higher still, with the Survey reversed by more recent declines. The CPI for Research Center's series on average inflation rates energy continued to fall in January. that are expected over a five- to ten-year horizon The producer price index for finished goods, holding in a range of AVi percent to 5 percent, which includes both consumer goods and capital according to surveys conducted in the second half equipment and covers only the prices received by of 1993 and early 1994. domestic producers, increased just 0.2 percent over the four quarters of 1993. An identical increase was reported in the PPI for finished goods other than MONETARY AND FINANCIAL DEVELOPMENTS food and energy; the increase in this measure was IN 1993 the smallest in its history, which goes back to 1974. As at retail, price increases for these domestically Financial repair continued in 1993, amid increasing produced goods were held down, in part, by the signs that borrowers and lenders were more comsharp drop in prices of tobacco products. More fortable with their balance-sheet positions. Housebroadly, competition from imports and further holds, in particular, and firms, to a lesser extent, increases in labor productivity in manufacturing stepped up their borrowing as the year progressed. were important elements in pricing restraint. The Depository institutions, for their part, were suffiprices of intermediate materials excluding food and ciently encouraged by the stronger economy and energy rose 1.6 percent over the four quarters of the improvement in their own financial conditions 1993, a small step-up from the pace of the previous to ease the terms and conditions of credit for busiyear. nesses and households. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 Federal Reserve Bulletin • March 1994 Nonetheless, with efforts to strengthen financial The Implementation of Monetary Policy positions continuing, financing remained concentrated in capital markets, largely bypassing banks Most short-term interest rates ended 1993 where and thrifts. In part spurred by the higher returns they had begun the year, at quarter-century lows available in those markets, investors found bonds that had resulted from the substantial easing in and stocks to be more attractive alternative than reserve conditions engineered by the Federal deposits; flows into bond and stock mutual funds Reserve from 1989 to 1992. The rate charged for were at record levels last year. As a consequence, adjustment borrowing at the discount window the monetary aggregates continued to grow quite remained at 3 percent, and federal funds traded slowly relative to the expansion of nominal income. around the same rate. Despite the stability of short- Recognizing the ongoing redirection of financial term interest rates, longer-term interest rates fell flows relative to historical norms, the Federal Open as much as 1 percentage point over the course of Market Committee (FOMC) in February and July 1993, to settle at levels not seen on a sustained 1993 lowered the annual ranges for M2 and M3 for basis since the late 1960s. Investors apparently 1993 in two technical adjustments totaling IV2 per- were encouraged by the prospects for low inflation centage points for M2 and 1 percentage point for and reduced federal budget deficits. Helped by the M3. Uncertainty about the extent and duration of decline in long-term rates and by brighter earnings the unusual change in velocity meant that growth reports, the stock market enjoyed strong gains. in the aggregates could not be relied upon to guide In February 1993, the time of the first FOMC changes in reserve conditions, and the FOMC con- meeting of the year, incoming information sugtinued to use a wide variety of information about gested that the economy had exhibited considerable financial and economic conditions for this purpose. strength in the fourth quarter of 1992. Final esti- Assessing the incoming information, the Federal mates for that quarter put the increase in real GDP Reserve judged that no change was needed in at a 5% percent annual rate and the growth of reserve and money market conditions during 1993 nominal GDP in excess of 9 percent. Final demand to sustain the economic expansion without engen- was seen to be strong, paced by household condering inflationary pressure. With money market sumption and business investment. With slack relarates remaining in a range not much, if at all, above tive to capacity still considerable—the unemploythe core rate of inflation, however, the members of ment rate averaged llA percent (on the old basis)— the FOMC viewed that a tightening in reserve price pressures were not perceived to be likely. The conditions at some point would likely be needed expansion of the monetary aggregates had faltered to avoid pressures on capacity and a pickup in around the turn of the year, but the sense was that inflation. special factors—importantly including a decline of Concerns about a buildup of inflationary momen- mortgage prepayments that constricted the level of tum increased in the spring, and, over the three transactions deposits—accounted for some of the months from mid-May until mid-August, instruc- weakness. Against this backdrop, it appeared to the tions from the FOMC to the Federal Reserve Bank members of the FOMC that unchanged reserve of New York indicated that there was a greater conditions would support economic expansion and likelihood that money market conditions should still be consistent with further declines in inflation be tightened rather than eased before the next and inflation expectations. Moreover, the situation scheduled meeting of the FOMC. Those concerns did not seem to call for a presumption of the likely again came to the fore as 1994 opened. Consider- direction of any intermeeting adjustment in reserve able underlying strength in aggregate demand and conditions; such a symmetric directive had been dwindling levels of excess capacity to meet that issued to the Account Manager of the System Open demand raised the risk that inflation pressures Market Account at the end of the December 1992 would strengthen down the road, derailing the meeting as well. expansion. Consequently, in February, the FOMC Investor confidence in the longer-term prospects tightened reserve conditions for the first time in in capital markets apparently strengthened in the five years, nudging short-term rates up XA percentweeks that followed, owing in part to a growing age point. perception that significant progress in reducing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 215 path of future budget deficits might be in the offing. cent (on the old basis), while industrial production By the time of the March Committee meeting, had changed little over the preceding few months. bond yields had fallen appreciably, touching levels The surge in the monetary aggregates in May last observed in 1973, with the largest declines apparently had not marked a trend toward more posted at the longest maturities. Indicators of real rapid expansion in broad measures of money. Overactivity suggested some slowing from the torrid all, the evidence pointed toward a sustained ecofourth-quarter pace, but in labor markets, payroll nomic expansion and some ebbing of the recent employment had strengthened and the unemploy- upsurge in inflationary pressures. News in that vein, ment rate had moved down further. Readings on along with progress in the Congress toward adopinflation sparked some concern about the potential tion of a deficit-reduction package, had fostered a for a buildup of inflationary momentum. With fun- drop in longer-term bond yields in the days leading damental forces still suggesting further disinflation, up to the meeting. The durability of that improvehowever, and with those concerns not evident in ment in market sentiment remained an open quescapital market indicators, or in the exchange value tion, however. Monetary policy could be viewed as of the dollar, which remained relatively steady, the relatively expansive in light of the behavior of a FOMC retained its symmetric directive. variety of other indicators, including the growth in In May, Committee members were confronted narrow measures of the monetary aggregates and with ambiguous indicators of economic activity, reserves and the low levels of money market interi prices, and the financial aggregates, which were est rates, in both nominal and, in particular, real all made more confusing by a spell of bad weather terms. In such an environment, Committee memthat had distorted somewhat the seasonal patterns bers agreed that it was necessary to remain espeof spending and production. As for the prices of cially alert to the potential for a pickup in inflation. goods and services, although many analysts As a result, the FOMC decided to retain the current thought that the major indexes were distorted by degree of restraint in the reserve market and an difficulties in seasonal adjustment, data releases asymmetric tilt toward tightening in the policy showing a variety of price and labor compensation directive. indexes on the high side of investor expectations At the time of the August meeting of the Comstill roiled financial markets. Slack in the economy mittee, readings on inflation were encouraging: remained appreciable, which weighed against Consumer prices had changed little, and producer any pickup in inflation, but inflation expectations prices had fallen over recent months. Data on were in danger of ratcheting higher, with possible spending and production had a weakish cast, and adverse consequences for inflation itself. Mean- the persistence of the sluggishness in the second while, the latest readings on the monetary aggre- quarter had become more apparent. These data gates showed a burst of growth in early May, releases had bolstered investor confidence in the but tax-induced distortions and a surge in pre- prospects for continued disinflation, while the payments of mortgage-backed securities made recently passed legislation on the federal budget this information particularly difficult to interpret. offered the promise of meaningful cuts in the defi- In the view of a majority of the members of the cit over the next several years. Accordingly, longer- FOMC, wage and price developments were suffi- term yields fell about 40 basis points. The resulting ciently worrisome to warrant positioning policy for capital gains apparently added to the allure of stock a move toward restraint should signs of mounting and bond mutual funds, thereby weakening M2, inflation pressures continue to multiply. Although which only edged up in July. At this meeting, they saw no immediate need to alter the degree of policymakers saw existing reserve conditions as reserve pressure, they agreed that current condi- consistent with their goals. Moreover, the dissipations made it easier to envisage a tightening rather tion of the inflation threat and the encouraging than an easing over the intermeeting period, a downward tilt to expectations of inflation sugsense that was embodied in an asymmetric policy gested to members of the FOMC that the risks were directive. more evenly balanced than of late. As a result, the Committee reverted to a symmetric directive— In advance of the July meeting of the FOMC, the instructions that carried no presumption as to the unemployment rate had moved back up to 7 per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 Federal Reserve Bulletin • March 1994 direction of an intermeeting move—which was some of the stimulus provided by the current low retained for the remainder of 1993. level of short-term interest rates before it fed Leading up to the September FOMC meeting, through to higher inflation. The Account Manager the unemployment rate had edged lower, to 6.7 per- was directed to tighten reserve conditions, and the cent (old basis), housing starts had declined, and federal funds rate moved up to a range around retail sales were flat in real terms. Substantial drags 3V4 percent, while the discount rate remained at on economic growth remained: cutbacks in the 3 percent. defense sector; uncertainties regarding the effects of other government policies that had the potential to raise labor and production costs; and slow Money and Credit Flows growth on average in the foreign industrial economies. However, sources of stimulus were also The long expansion of the 1980s was associated apparent: the cumulative spur to spending of low with growth of total debt of domestic nonfinancial interest rates, especially at longer maturities; the sectors that was about W2 times the pace of nomilessening of balance-sheet constraints on house- nal GDP growth. In the wake of this phenomenal holds and firms; and the improving financial condi- leveraging, the recession and tepid economic tion of the depository sector, which was making recovery from 1990 to 1992 were importantly a credit more available. Given these conflicting influ- balance-sheet phenomenon that was reflected in a ences on spending, the Committee determined that slowing in debt growth. In retrospect, it is apparent leaving reserve conditions unchanged would be that this deceleration in debt was one symptom of most consistent with maintaining sustainable eco- the general dissatisfaction of both borrowers and nomic growth. lenders with their financial conditions, a concern The incoming data in advance of the final two that also led to some restraint on spending and Committee meetings of 1993 indicated a robust asset accumulation. Nineteen ninety-three saw near-term expansion in activity with no immediate some lessening of this restraint, and the growth of inflationary pressure. Although there was a sense the debt of the nonfinancial sectors expanded 5 perthat with reserves ample and money market rates at cent, about in line with nominal GDP. This perforthe low end of the range of experience over the past mance put the debt aggregate in the lower portion three decades, the next move in policy would be to of its 4 percent to 8 percent monitoring range, a tighten, the members of the Committee agreed that range that had been set at the first meeting of the until trends became clearer, the current stance of year. policy should be maintained. The prospects of The debt of the nonfederal sectors (nonfinancial heightened credit demands and forecasts of loom- businesses, households, and state and local governing capacity pressures pushed up longer-term inter- ments) expanded 33A percent last year. For nonest rates about 3/s percentage point from their yearly financial corporations, a pickup in fixed investment lows set in mid-October. Over that same span, the and inventory investment outpaced increases in dollar showed notable strength on foreign exchange internally generated funds, pushing the financing markets. gap into positive territory after two years of nega- Most market rates held at these higher levels as tive readings; as those firms sought outside funds, the FOMC met for the first time in 1994. Readings they turned, in the main, to long-term debt markets, on activity suggested that 1993 had ended on a though net equity issuance remained sizable as very strong note, with real GDP expanding about well. However, the debt markets in 1993 saw far 6 percent at an annual rate in the fourth quarter and more activity than the net requirements for external reports suggesting that some of this momentum had funds implied. Low longer-term rates induced carried over into 1994. Slack in labor and product many firms to refinance existing obligations, pushmarkets had been reduced considerably, and the ing gross public debt issuance by nonfinancial prices of a number of commodities important in the firms above $190 billion. production of durable goods and in construction Earlier efforts to restructure balance sheets, along had begun to move higher. With that backdrop, the with the opportunities afforded by lower long-term Committee decided that it was time to trim back rates to refinance existing obligations, apparently Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 217 put households in a better position to take on new 3. Distribution of assets of domestic commercial banks, debt in 1993. With debt-service burdens holding at by adjusted capital category1 about 16 percent of income, or about 2lA percent- Percent age points below the peak set at the end of the End of year September previous decade, and with loan rates declining sub- CCaatteeggoorryy 1993 1990 1991 1992 stantially, households assumed new liabilities rapidly enough, on net, to push up the ratio of their Well capitalized 30.4 34.4 67.8 73.3 Adequately capitalized ... 38.5 45.1 21.8 17.8 total liabilities to disposable income to just under Undercapitalized 31.1 20.5 10.3 8.9 90 percent in 1993. The largest swing was in the 1. Adjustments to capital categories were made according to the rule of consumer credit category, as households evidently thumb of downgrading a bank by one category for a low examination rating became more confident of the sustainability of the by its supervisory agency (CAMEL 3, 4, or 5). economic expansion and made previously delayed purchases of durable goods, especially autos. The Depository credit did expand modestly in 1993, record volume of mortgage originations mostly marking a substantial rebound from the declines involved refinancings, but with a pickup in con- posted in the previous three years. The increase in struction activity and some cashing out of equity depository credit exceeded the growth of deposit in the process of refinancing, home mortgages funds, as depositories made extensive use of equity, expanded 7 percent, on net, last year. Overall, this subordinated debt, and other nondeposit funds to pickup in liabilities was dwarfed by a substantial finance the expansion of depository balance sheets. expansion of the asset side of the household bal- Bank credit increased 5 percent last year after two ance sheet last year, raising net worth to a level years of growth in the neighborhood of 3Vi perabout 43A times that of disposable income. Within cent, while thrift credit contracted only modestly. those assets, households continued to shun deposits Indeed, thrift credit is estimated to have expanded in favor of the investment products of nonbank in the second half of the year, pulled up by extenintermediaries, notably mutual funds and insurance sions of loans by credit unions that outweighed companies. As a result, deposits shrank to less than continuing, albeit slackening, runoffs at savings 20 percent of total household assets, a post-World and loans. War II low. Much of the declining role for deposits Slow expansion of depository credit, together probably owed to the pattern of financial returns, with the increased reliance by banks on nondeposit with investors, confronted by a steep yield curve, funds, damped the growth of M3 in 1993. From the seeking out the higher yields provided by longer- fourth quarter of 1992 to the fourth quarter of 1993, maturity instruments that were mostly available M3 grew Vi percent, ending the year a little above from outside the depository sector. the lower bound of its annual range of 0 percent to Depository institutions, pressed by their own 4 percent (table 4). This range had been adjusted balance-sheet problems, were unaggressive in seek- down for technical reasons to acknowledge the ing deposits and extending credit in the early appreciable upward trend to M3 velocity over the 1990s. By 1993, however, commercial banks had past few years, which accompanied the shrinking made substantial strides in improving their capital role of depositories in intermediating funds. The standing. About three-quarters of the assets at com- part of M3 exclusive to that aggregate declined mercial banks were on the books of well- 3V2 percent on a fourth-quarter-to-fourth-quarter capitalized institutions as of September 1993, basis, held down by a steep drop in institution-only 2Vi times the proportion at the end of 1990 money market mutual funds. Overall, M3 velocity (table 3). Partly as a consequence, banks reported rose at a 4V2 percent annual rate in 1993, down on Federal Reserve surveys a substantial easing of almost 2 percentage points from the previous year. terms and standards on business and consumer The velocity of M2 rose at a 33A percent annual loans during the year. However, borrowers, endeav- rate in 1993 after increasing nearly 5 percent in oring to lock in longer-term funds, which are not 1992. The rise in velocity last year was posted even typically supplied by banks, continued to rely as the return on many competing short-term assets heavily on capital markets, keeping the need of remained relatively constant, and it was this ongodepositories to fund asset expansion subdued. ing drift upward in the ratio between nominal GDP Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 Federal Reserve Bulletin • March 1994 4. Growth of money and debt Percent Domestic Measurement period Ml M2 M3 nonfinancial debt Year1 1980 7.4 8.9 9.6 9.1 1981 5.4 (2.5 2) 9.3 12.4 9.9 1982 8.8 9.2 9.9 9.6 1983 10.4 12.2 9.9 12.0 1984 5.5 8.1 10.9 14.0 1985 12.0 8.7 7.6 14.2 1986 15.5 9.3 8.9 13.4 1987 6.3 4.3 5.7 10.3 1988 4.3 5.3 6.3 9.0 1989 .6 4.8 3.8 7.8 1990 4.2 4.0 1.7 6.6 1991 7.9 2.9 1.2 4.6 1992 14.3 1.9 .5 5.0 1993 10.5 1.4 .6 4.9 Quarter (annual rate)3 1993: 1 8.3 -1.3 -3.2 4.0 2 10.7 2.2 2.1 4.5 3 12.0 2.6 1.1 5.7 4 9.4 2.1 2.4 5.2 1. From average for fourth quarter of preceding year to average for fourth 2. Adjusted for shift to NOW accounts in 1981. quarter of year indicated. 3. From average for preceding quarter to average for quarter indicated. and the aggregate that led the FOMC to reduce the Many banks made it possible to buy stock and annual growth range for M2 from the 2 percent to bond mutual funds in their lobbies. Promotion of 6 percent spread that was set in February to the these services picked up, and some banks spon- 1 percent to 5 percent range that was ultimately in sored their own mutual funds or established effect. In the event, M2 grew 1 xh percent from the exclusive marketing arrangements with mutual fourth quarter of 1992 to the fourth quarter of 1993, fund companies, undoubtedly encouraging the slowing slightly from the 2 percent growth rate in diversion of deposits to mutual funds. 1992. Even this anemic expansion was accounted At the end of 1993, assets in stock and bond for in part by special factors. In particular, foreign mutual funds totaled about $1V2 trillion, up demands for currency were strong and transactions $400 billion from the end of 1992. About one-half deposits were boosted late in the year by a surge in of the December 1993 total was held by institutions mortgage refinancings that followed when mort- and in retirement accounts—two categories genergage rates fell to levels not seen in a generation. ally not in M2. M2 plus the remainder of stock and Refinancings are associated with the temporary bond funds expanded at around a 5V2 percent parking of funds in transactions and other highly annual rate in 1993, roughly in line with nominal liquid deposit accounts. GDP over that period. Especially after taking account of such special Ml grew at a IOV2 percent pace last year, spurred factors, the growth of M2 was quite subdued in on by double-digit increases in currency and 1993, owing in large part to the attractiveness of demand deposits. As noted above, the former was capital market instruments. Although the bond mar- importantly boosted by foreign demands, while the ket rally trimmed as much as 1 percentage point latter was closely related to swings in mortgage from longer-term yields, the term structure still refinancing. Ml velocity declined at a 43A percent retained an abnormally steep tilt through all of annual rate, despite the relative stability of money 1993. Some investors were willing to expose them- market interest rates. In contrast, the narrow aggreselves to the greater price risk inherent in capital gate's velocity had followed the path of short rates market mutual funds in the pursuit of higher aver- down during the easing of monetary policy from age returns. Commercial banks took some mea- 1989 to 1992. Altogether, the drop in Ml velocity sures to keep those customers, if not those deposits: in recent years illustrates both its high interest-rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 219 sensitivity and the fairly loose relationship of Ml keep reserve market pressures unchanged over all to interest rates and income. With the rapid expan- of 1993, the Domestic Desk at the Federal Reserve sion of transactions deposits, total reserves grew at Bank of New York added about $35 billion of a 1214 percent annual rate last year, down from the securities, on net, to the System Open Market 20 percent pace posted in 1992. Adding in the Account over the course of the year. In keeping increase in currency results in a IOV2 percent with previous FOMC instructions, those purchases growth rate for the monetary base in 1993, the were weighted more heavily than in the past same performance as the previous year. toward longer-maturity instruments. As a result, Confronted with this rapid expansion in transac- the average maturity of the Treasury securities held tion deposits, and therefore required reserves, and by the Federal Reserve moved up slightly over directed by the Federal Open Market Committee to 1993, to 3.2 years. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 Industrial Production and Capacity Utilization since 1990: A Revision Richard D. Raddock, of the Board's Division of mates of capital stocks used to prepare the capacity Research and Statistics, prepared this article. estimates also have been updated and improved. Krista M. Green provided research assistance. Although the numbers for some of the individual series have changed noticeably, the overall effect The Federal Reserve's index of industrial produc- on the total production index was very small (in tion and the related measures of capacity and fact, the effect on production estimates is barely capacity utilization have been updated. The esti- visible in chart 1). For the fourth quarter of 1993, mates of production for 1991 onward have been the revised production index was 112.8 percent of revised mainly to incorporate more comprehensive 1987 output, compared with 113.1 percent reported monthly source data, the results of a review of previously (table l).1 Total industrial capacity productivity relationships, and updated seasonal growth is now estimated to have been about a factors; the estimates of capacity and capacity utili- quarter of a percent per year higher in 1992 and zation for 1990 onward have been revised prima- 1993 than shown previously. As a result, the rate of rily to reflect the results for 1991 and 1992 of the capacity utilization—the ratio of production to U.S. Bureau of the Census's Survey of Plant Capac- capacity—has been revised down more than half a ity Utilization and a review of the relationships of percentage point for the fourth quarter of 1993, to capacity output to industry capital stocks. The esti- an estimated 82.3 percent. Led by continuing strength in the output of computer and office equipment and by rebounding pro- 1. Industrial production, capacity, and capacity utilization, duction of motor vehicles and parts during the final 1979-93 four months of 1993, industrial output is now estimated to have advanced 4.2 percent over the four quarters of the year, more than double the 1.9 percent gain in capacity. Based on these revised estimates, the rate of utilization of industrial capacity rose about 2 percentage points. Utilization of the nation's factories, mines, and utilities now appears to have surpassed the 1967-93 average by about a percentage point by the end of 1993 but to have remained well below earlier cyclical highs. INDUSTRIAL PRODUCTION The revised estimates of production reflect (1) incorporation of monthly, quarterly, and, in some 1. The production and utilization data for the fourth quarter of 1993 are based on information available as of February 15, 1994. These figures are subject to further revision in the G. 17 statistical releases due to be published on the 15th of March and April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

221 1 .A. Revised data for industrial production, capacity, and capacity utilization for total industry, 1990-931 Quarter Annual Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. avg. Industrial production (percent change) 1990 -.5 .5 .3 -.7 .7 .2 -.2 .3 .0 -.5 -1.3 -.4 2.1 1.1 1.6 -5.2 .0 1991 -.4 -1.1 -.8 .2 .9 .9 .2 .1 .8 -.2 -.2 -.3 -7.8 1.0 5.7 .3 -1.8 1992 -.3 .8 .5 .7 .4 -.5 .5 -.3 .1 .9 .7 .6 .3 5.6 .6 6.4 2.3 1993 .2 .6 .1 .4 -.4 .3 .4 .2 .2 .6 .8 .9 5.2 2.3 2.8 6.5 4.1 Industrial production (percent of 1987 output) 1990 105.5 106.1 106.4 105.7 106.5 106.7 106.5 106.8 106.8 106.3 105.0 104.5 106.0 106.3 106.7 105.3 106.0 1991 104.2 103.0 102.3 102.5 103.4 104.3 104.5 104.6 105.4 105.2 105.0 104.6 103.2 103.4 104.9 104.9 104.1 1992 104.3 105.2 105.6 106.4 106.8 106.2 106.8 106.5 106.6 107.5 108.3 109.0 105.0 106.5 106.6 108.3 106.5 1993 109.2 109.9 110.0 110.5 110.0 110.4 110.9 111.1 111.3 111.9 112.8 113.9 109.7 110.3 111.1 112.8 110.9 Capacity (percent of 1987 output) 1990 128.2 128.4 128.6 128.8 129.0 129.2 129.4 129.6 129.8 130.0 130.2 130.4 128.4 129.0 129.6 130.2 129.3 1991 130.6 130.8 131.0 131.1 131.3 131.5 131.7 131.8 132.0 132.2 132.4 132.6 130.8 131.3 131.8 132.4 131.6 1992 132.7 132.9 133.1 133.3 133.5 133.7 133.9 134.1 134.3 134.5 134.6 134.8 132.9 133.5 134.1 134.6 133.8 1993 135.0 135.3 135.5 135.7 135.9 136.1 136.3 136.5 136.8 137.0 137.2 137.4 135.3 135.9 136.5 137.2 136.2 Capacity utilization (percent of capacity) 1990 82.3 82.6 82.7 82.1 82.5 82.5 82.3 82.4 82.3 81.8 80.6 80.2 82.5 82.4 82.3 80.9 82.0 1991 79.8 78.8 78.1 78.2 78.7 79.3 79.4 79.4 79.9 79.6 79.3 78.9 78.9 78.8 79.5 79.3 79.1 1992 78.6 79.1 79.4 79.8 80.0 79.5 79.8 79.4 79.4 80.0 80.4 80.8 79.0 79.8 79.5 80.4 79.7 1993 80.9 81.2 81.2 81.4 81.0 81.1 81.3 81.4 81.4 81.7 82.2 82.9 81.1 81.2 81.4 82.3 81.5 1. The estimates of industrial production for 1991 onward have been production, which are calculated from not seasonally adjusted indexes. revised, while the revisions of the estimates of capacity and utilization begin Estimates for November and December 1993 are subject to further revision in 1990. Data are seasonally adjusted, except annual averages of industrial in upcoming monthly G.17 statistical releases. l.B. Revised data for industrial production, capacity, and capacity utilization for manufacturing industries, 1990-931 Quarter AAnnnnuuaall Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. aavvgg.. 1 2 3 4 Industrial production (percent change) 1990 -.1 .9 .4 -.9 .5 .0 -.3 .5 -.1 -.6 -1.2 -.5 3.7 .2 1.0 -5.5 -.3 1991 -.7 -1.1 -.9 .3 .8 1.0 .3 .2 .9 -.2 -.3 .0 -9.1 .8 6.9 1.1 -2.2 1992 -.4 .9 .5 .7 .4 -.4 .4 -.1 .1 .9 .8 .5 1.2 6.1 .9 6.5 3.0 1993 .5 .4 .2 .7 -.2 .1 .4 .1 .3 .7 1.0 1.0 6.0 3.3 2.4 8.2 4.6 Industrial production (percent of 1987 output) 1990 105.5 106.5 107.0 106.0 106.6 106.6 106.3 106.9 106.8 106.2 104.9 104.4 106.3 106.4 106.6 105.1 106.1 1991 103.7 102.6 101.7 102.0 102.8 103.8 104.1 104.3 105.3 105.1 104.8 104.7 102.7 102.9 104.6 104.9 103.7 1992 104.4 105.3 105.9 106.6 107.1 106.7 107.1 106.9 107.0 107.9 108.8 109.3 105.2 106.8 107.0 108.7 106.8 1993 109.9 110.4 110.5 111.3 111.1 111.2 111.6 111.8 112.1 112.9 114.1 115.2 110.3 111.2 111.8 114.1 111.7 Capacity (percent of 1987 output) 1990 129.6 129.8 130.0 130.3 130.5 130.7 130.9 131.2 131.4 131.6 131.8 132.0 129.8 130.5 131.2 131.8 130.8 1991 132.3 132.5 132.7 132.9 133.1 133.3 133.5 133.7 133.9 134.1 134.3 134.5 132.5 133.1 133.7 134.3 133.4 1992 134.7 134.9 135.2 135.4 135.6 135.8 136.1 136.3 136.5 136.7 137.0 137.2 134.9 135.6 136.3 137.0 135.9 1993 137.4 137.7 137.9 138.2 138.4 138.7 138.9 139.2 139.5 139.7 140.0 140.2 137.7 138.4 139.2 140.0 138.8 Capacity utilization (percent of capacity) 1990 81.4 82.0 82.3 81.4 81.7 81.5 81.2 81.5 81.3 80.7 79.6 79.1 81.9 81.5 81.3 79.8 81.1 1991 78.4 77.4 76.7 76.8 77.2 77.9 78.0 78.0 78.6 78.4 78.0 77.9 77.5 77.3 78.2 78.1 77.8 1992 77.5 78.1 78.3 78.7 78.9 78.5 78.7 78.5 78.4 78.9 79.4 79.7 77.9 78.7 78.5 79.4 78.6 1993 80.0 80.2 80.1 80.6 80.2 80.1 80.3 80.3 80.4 80.8 81.5 82.2 80.1 80.3 80.3 81.5 80.6 For notes, see table l.A. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 Federal Reserve Bulletin • March 1994 2. Rates of growth of industrial production, by major market group, 1990-93 Revised rate of growth1 Difference between revised and earlier growth rates (percent) MMaarrkkeett ggrroouupp (percentage points) 1990 1991 1992 1993 1991 1992 1993 Total index -.2 -3 3.2 4.2 .0 .0 -3 Products, total -.4 -.6 3.9 3.9 .1 .2 -.4 Final products -.1 -.1 4.1 3.9 -.1 -.3 -.6 Consumer goods -1.8 2.3 3.2 1.9 .2 .4 -.2 Durable consumer goods -8.3 5.0 6.4 9.0 3 -.2 -.9 Automotive products -11.7 5.0 11.7 12.5 .1 .8 -.1 Other -5.4 4.9 2.1 5.9 .4 -1.0 -1.6 Nondurable consumer goods .1 1.6 2.4 -.1 .2 .6 -.1 Equipment 2.3 -3.1 5.2 6.6 -.4 -1.4 -.9 Business equipment 3.0 -.5 8.7 10.0 -.1 -1.1 -1.0 Industrial -1.4 -5.9 3.6 4.4 .0 -2.5 -1.9 Information processing and related 6.2 1.1 16.4 15.8 -.4 .2 .1 Transit 7.0 7.7 -1.1 1.6 .2 -2.2 -1.4 Other -2.2 -4.8 6.3 10.8 .4 -1.5 -3.3 Defense and space equipment -.9 -8.7 -10.3 -9.3 -1.2 -2.5 -1.4 Intermediate products -1.6 -2.5 3.1 4.0 .7 1.5 .4 Construction supplies -4.3 -4.5 3.4 5.6 .4 -1.0 -.6 Business supplies .2 -1.2 2.9 3.0 .9 3.1 1.1 Materials .2 .1 2.2 4.7 -.1 -.2 .0 Durable goods materials -.1 -.3 3.4 8.2 -.1 -.6 .1 Nondurable goods materials .7 1.2 2.1 3.2 -.1 -.1 -.1 Energy materials .2 -.1 .1 -.9 -.2 .4 -.2 1. The estimates for 1991 onward have been revised. Growth rates are fourth quarter of the previous year to the fourth quarter of the year specified calculated as the percent change in the seasonally adjusted index from the in the column heading. cases, annual output data that were not available in statistically filtered for outliers. Third, new productime for inclusion in the data published during tivity factors based on productivity trends derived 1993 in the Federal Reserve's monthly G.17(419) from annual input and output data through 1991 statistical release "Industrial Production and were applied to input data for 1991 onward. Capacity Utilization," (2) use of updated seasonal Revisions for industrial production by major adjustment factors, and (3) a review of output market group are shown in table 2. Compared with indexes based on monthly input measures.2 earlier figures, the revised rates of growth in output Input measures, either production-worker hours of consumer goods are slightly higher for 1991 and paid for by industrial establishments or kilowatt- 1992 and slightly lower for 1993. A downward hours of electricity consumed by industry, are used revision of the estimates of output of household to estimate monthly production indexes, which by durable goods slowed the large gain in the output weight account for more than half of industrial of consumer durables in 1993 from 10 percent to production. These input-based series were revised 9 percent. In contrast, the output of nondurable in three ways. First, the data for production-worker consumer goods edged down in 1993 after having hours were updated to include the benchmark advanced at an upwardly revised average annual adjustments introduced by the Bureau of Labor rate of 2 percent in 1991 and 1992. Growth in Statistics in late spring 1993. Second, the data for production of equipment in both 1992 and 1993 consumption of electric power by industry were was revised down about a percentage point. The production of business equipment remained relatively strong; the weakness in commercial aircraft and the defense and space industries was intensi- 2. In the seasonal adjustment process, an effort was made to fied. The production of industrial materials was reconcile seasonal factors at the individual and aggregate levels to achieve consistency. For series based on production-worker hours, revised little and continues to show an acceleration the current seasonal factors were estimated using data through of growth in 1992 and 1993 after the weakness in October 1993; for other series, the factors were estimated using 1990 and 1991. The recovery in output of construcdata through July 1993. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization since 1990: A Revision 223 3. Rates of growth of industrial production, by major industry group, 1990-93 Revised rate of growth2 Difference between revised and earlier growth rates IInndduussttrryy ggrroouupp cc SS oo II dd CC ee11 (percent) (percentage points) 1990 1991 1992 1993 1991 1992 1993 Total index -.2 -3 3.2 4.2 .0 .0 -J Manufacturing -.2 -.3 3.6 4.9 .0 -.1 -.3 Primary processing -1.2 -.7 2.8 4.8 .1 -.1 .5 Advanced processing .2 -.1 4.0 5.1 .0 -.1 -.4 Durable manufacturing -.7 -.9 4.3 7.8 -.1 -1.1 -.5 Lumber and products 24 -8.5 .7 8.4 5.1 .2 1.3 -.7 Furniture and fixtures 25 -4.2 -1.2 3.7 5.4 -.1 -2.9 -3.5 Stone, clay, and glass products 32 -3.3 -6.7 5.1 4.6 -.2 -.8 -.5 Primary metals 33 .9 -3.4 .8 7.4 .5 -.1 1.9 Iron and steel 331,2 2.9 -5.2 1.3 9.2 .5 .0 1.9 Raw steel 5.6 -8.2 1.7 5.9 -.3 -.1 .3 Nonferrous 333-6,9 -2.0 -.7 .2 4.6 .3 -.2 1.8 Fabricated metal products 34 -3.0 -2.3 1.0 5.6 .0 -1.3 .6 Industrial machinery and equipment 35 1.7 -2.7 13.3 17.7 -.1 -1.9 -.3 Computer and office equipment 357 11.0 2.0 31.8 34.2 .1 .7 -.2 Electrical machinery 36 -.2 2.5 5.2 10.8 -1.0 -2.9 .0 Transportation equipment 37 -1.2 .6 -.2 3.6 .1 -.4 -1.5 Motor vehicles and parts 371 -7.2 9.4 10.5 16.6 1.2 .3 -1.7 Autos and light trucks -11.1 12.3 11.2 17.0 .7 2.7 .6 Aerospace and miscellaneous 372-6,9 4.1 -6.2 -10.0 -10.8 -.8 -1.3 -1.8 Instruments 38 2.0 -.5 .0 -2.7 .2 1.6 -1.0 Miscellaneous 39 -1.1 .7 .7 2.2 -.4 -2.9 -.7 Nondurable manufacturing .4 .5 2.8 1.4 .3 1.1 .2 Foods 20 1.7 1.0 1.9 .5 .4 1.1 -.3 Tobacco products 21 .0 -9.5 9.7 -12.3 -.5 .7 -.8 Textile mill products 22 -5.2 6.7 5.1 .8 .2 .7 -.5 Apparel products 23 -4.6 4.4 .1 -1.9 .3 1.7 1.0 Paper and products 26 2.6 1.2 .1 5.4 .0 .2 .9 Printing and publishing 27 -.7 -2.1 3.1 1.1 1.2 5.0 1.6 Chemicals and products 28 1.4 .7 3.3 1.9 -.3 -.5 -.1 Petroleum products 29 -.1 -.9 3.5 2.8 .0 .7 -.6 Rubber and plastics products 30 .6 1.2 4.9 4.8 .5 1.1 .8 Leather and products 31 -7.5 -4.3 .1 -3.5 -1.7 -8.4 -6.7 Mining 2.6 -3.4 -.5 -1.1 -.1 .4 -1.0 Metal mining 10 4.4 .5 5.1 3.3 -.4 -1.4 -1.8 Coal mining 12 1.4 -2.5 -.7 -3.2 -.3 2.0 -1.4 Oil and gas extraction 13 3.0 -3.5 -1.1 -1.3 -.1 .2 -1.0 Stone and earth minerals 14 .6 -7.5 .6 1.2 .4 -.4 -.3 Utilities -2.0 2.4 1.9 1.2 -.1 -.1 .5 Electric 491,3pt -.6 1.2 2.1 .6 -.1 .2 .2 Gas 492,3pt -6.8 6.9 1.3 3.4 .0 -.9 1.7 1. Standard Industrial Classification. fourth quarter of the previous year to the fourth quarter of the year specified 2. The estimates for 1991 onward have been revised. Growth rates are in the column heading, calculated as the percent change in the seasonally adjusted index from the tion supplies was more moderate than had been manufacturing, upward revisions in a number of previously estimated, and the recovery in produc- industries, particularly printing and publishing, tion of business supplies, which had earlier been more than offset a downward revision in leather shown to be quite weak, was revised up. and products. Among durable manufacturing indus- By major industry group (table 3), the estimates tries, downward revisions predominated; they were of 1993 output for manufacturing and mining were noticeable for furniture and fixtures, machinery, revised downward, while that for utilities was miscellaneous manufactures, aerospace and miscelraised. Several individual series were revised laneous transportation equipment, and stone, clay, noticeably for 1992 and 1993. Within nondurable and glass products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 Federal Reserve Bulletin • March 1994 2. Federal Reserve capacity estimates and implied capacity estimates derived from the Census Bureau survey, Availability of Output, Capacity, manufacturing industries, 1977-931 and Utilization Estimates Ratio scale, 1987 production = 100 Current estimates of output, capacity, and utilization are published first in the Federal Reserve monthly statistical release G. 17(419), "Industrial Production and Capacity Utilization," and then in the statistical tables of the Federal Reserve Bulletin. All data shown in the release are available on the day of issue through the Department of Commerce's online Economic Bulletin Board; for information, call 202^82-1986. Diskettes containing either historical data (through 1985) or revised data (from 1986 to the latest date published in the most recent G.17 statistical release) 1977 1979 1981 1983 1985 1987 1989 1991 1993 are available from Publications Services, Board of 1. Census Bureau implied capacity estimates are calculated by dividing Governors of the Federal Reserve System, Washingindustrial production by utilization rates derived from the Census Bureau's Survey of Plant Capacity Utilization: to make the results comparable with the ton, DC 20551 (202-452-3245). Estimates for total Federal Reserve's capacity estimates, the calculations are adjusted downward industry and manufacturing, January 1982 to the latest by the average difference between the Census Bureau utilization rate and the available month in 1993, are shown in tables 5A and McGraw-Hill/DRI utilization rates for 1977 through 1988. Until 1989, the Census Bureau defined utilization in terms of a preferred level of operations 5B of the G.17 statistical release. Hard copy of the ("Census preferred"); in 1989, it changed its definition to full production revised estimates of series shown in the G.17 release is utilization, which relates actual output to full production capability. Implied capacity estimates for 1993 not yet available. available upon written request to Industrial Output Section, Mail Stop 82, Division of Research and Statistics, Federal Reserve Board, Washington, DC 20551. CAPACITY AND CAPACITY UTILIZATION A table "Industry structure and series composition of industrial production: Classification, value added The capacity indexes, which are designed to weight, and description of series" is also available accompany the production indexes for industry upon written request to the Industrial Output Section. groups, have also been revised. Preliminary end- A similar table is available for the capacity indexes. of-year estimates of capacity for many industries are calculated by dividing a production index, expressed as a percent of 1987 output, by a utiliza- the capital stock continued to expand in 1991.3 tion rate obtained from a survey. Thus the revised Available evidence suggests that the decline in production estimates, as well as manufacturing uti- implied capacity derived from the Census Bureau's lization rates for the fourth quarters of 1991 and survey may be, in part, a cyclical phenomenon.4 1992 recently provided by the Bureau of the Census from its Survey of Plant Capacity Utilization, 3. New real net capital stock measures for manufacturing were were key factors in updating the Federal Reserve's estimated using the perpetual inventory method. Elements included estimates of capacity. In addition, output and are (1) time-series for investments in new equipment and structures capacity data that are reported in physical units, by three-digit manufacturing industries; (2) corresponding decompositions of the annual investments into twenty-eight asset types; such as tons of steel and wood pulp or counts of (3) asset-type deflators and service lives; and (4) estimates of losses motor vehicles, were updated. of capital efficiency due to discards and economic decay as assets age. The capital stock estimates incorporate not only historical With the exception of 1991, the revised Federal investment expenditures through 1991 from the Censuses and Reserve estimates of capacity for manufacturing Annual Surveys of Manufactures, but also 1992-94 updates based industries are generally consistent with the implied on actual and planned expenditures on plant and equipment recapacity estimates for 1990-92 derived from the ported by the Census Bureau. 4. The Census Bureau's questionnaire instructs respondents to Census Bureau's survey (chart 2). The Federal define full production capacity in terms of a "normal" level of Reserve's method of estimating capacity from sur- plant operating hours. However, many industries that reported large vey data smoothes through the 1991 drop in the declines in implied capacity in 1991 also reported substantial cuts in actual plant operating hours, suggesting that the current ecoimplied capacity estimates, in large part because nomic environment may dominate some respondents' perceptions available investment expenditures data indicate that of capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization since 1990: A Revision 225 4. Rates of growth of capacity, by major industry group, 1990-93 Revised rate of growth2 Difference between revised and earlier growth rates IInndduussttrryy ggrroouupp cc SS oo II dd CC ee11 (percent) (percentage points) 1990 1991 1992 1993 1990 1991 1992 1993 Total index 1.9 1.7 1.7 1.9 .1 .1 2 J Manufacturing 2.1 1.9 2.0 2.2 .0 .1 .2 .4 Primary processing 1.7 1.1 1.0 1.1 .0 .2 .3 .2 Advanced processing 2.3 2.2 2.4 2.7 .0 .0 .2 .5 Durable manufacturing 2.1 1.8 2.1 2.6 .0 -.1 .1 .5 Lumber and products 24 .6 .1 .2 .7 .5 1.1 .0 .2 Furniture and fixtures 25 2.2 .7 .8 1.3 .1 .0 -.2 .0 Stone, clay, and glass products 32 .7 .3 .9 1.1 .3 .6 .9 1.0 Primary metals 33 .6 -1.0 -1.4 -1.2 .0 -.3 -.4 -1.1 Iron and steel 331,2 .9 -1.2 -2.3 -1.9 .0 .0 -.9 -2.2 Raw steel .0 -1.6 -2.2 -2.0 .0 .0 -1.0 -2.1 Nonferrous 333-6,9 .0 -.6 -.1 -.1 -.1 -.7 .3 .5 Fabricated metal products 34 .3 -.1 -.2 -.2 -.2 -.2 -.2 -.2 Industrial machinery and equipment 35 4.7 5.3 5.3 5.9 1.7 .9 1.3 1.6 Computer and office equipment 357 15.3 14.4 13.4 14.0 5.8 2.3 3.6 4.1 Electrical machinery 36 3.6 2.7 2.9 5.0 -.5 -.4 -.7 .9 Transportation equipment 37 1.0 .8 2.0 1.3 -.6 -1.0 -.2 .1 Motor vehicles and parts 371 1.1 1.7 3.5 3.6 -.8 -1.1 -.8 .9 Autos and light trucks .8 1.0 4.8 3.7 .7 .7 .4 .6 Aerospace and miscellaneous 372-6,9 .8 -.1 .4 -1.0 -.5 -1.0 .3 -.6 Instruments 38 1.3 1.3 1.4 1.5 -1.0 -.6 -.2 .1 Miscellaneous 39 1.6 1.7 1.7 1.6 -.3 .1 .2 -.5 Nondurable manufacturing 2.1 2.0 1.8 1.7 .0 3 .4 .2 Foods 20 1.4 2.1 2.5 2.5 .1 .7 1.0 .9 Tobacco products 21 -.4 -.4 -.4 -.4 -.4 -.4 -.4 -.4 Textile mill products 22 1.6 1.0 1.0 1.7 .3 .2 .4 1.0 Apparel products 23 .1 -.5 -.8 -.8 -.1 -.1 -.2 -.4 Paper and products 26 2.9 2.4 1.8 1.6 .3 .2 .4 .2 Printing and publishing 27 2.9 1.6 .7 .7 .1 .2 .3 -.1 Chemicals and products 28 2.5 2.9 2.6 2.4 -.5 .3 .1 -.3 Petroleum products 29 .9 -.8 -1.3 -.5 .0 .0 .0 .3 Rubber and plastics products 30 4.0 3.4 3.3 3.0 .0 .3 .8 .2 Leather and products 31 -3.5 -3.5 -3.6 -3.8 -.3 -2.3 -2.8 -3.3 Mining -1.4 -.6 -1.0 -1.1 .0 .1 .0 -.3 Metal mining 10 5.3 2.2 1.6 1.5 .0 -.3 .2 -.3 Coal mining 12 2.1 2.1 1.0 1.1 .0 .0 -.2 -.4 Oil and gas extraction 13 -3.0 -1.5 -1.9 -2.0 .0 .2 .0 -.2 Stone and earth minerals 14 -.1 -.5 -.2 -.1 .0 .0 .0 .0 Utilities 2.4 1.4 1.2 1.0 .7 .3 -.1 -.1 Electric 491,3pt 3.2 1.8 1.5 1.4 .9 .4 -.2 .0 Gas 492,3pt .0 .0 .0 .0 .0 .0 .0 .0 1. Standard Industrial Classification. adjusted index from the fourth quarter of the previous year to the fourth 2. Growth rates are calculated as the percent change in the seasonally quarter of the year specified in the column heading. The growth of manufacturing capacity in 1993 has of capacity growth for leather, steel, and aerospace been revised upward, in part because revised esti- and miscellaneous transportation equipment were mates show that the capital stock increased at a lowered. slightly faster rate than previously estimated. For some industries, revisions for utilization par- The estimate of total industrial capacity growth allel those for production. The utilization rate for from 1990 through 1993 was raised because of durable goods manufacturing industries for the upward revisions of estimates of capacity growth fourth quarter of 1993 was lowered about PA perfor various nondurable manufacturing industries as centage points, to 80.7 percent (table 5). In conwell as for stone, clay, and glass products, copper, trast, the utilization rate for nondurable goods manautos and light trucks, and especially computer and ufacturing industries was revised up. For printing office equipment (table 4). However, the estimates and publishing and for furniture and fixtures, an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 Federal Reserve Bulletin • March 1994 5. Capacity utilization rates, by major industry group, 1967-93 Seasonally adjusted Difference between revised Revised rate and earlier rates IInndduussttrryy ggrroouupp cc SS oo II dd CC ee 11 (percent of capacity) (percentage points) 1967-93 1988-89 1990-91 1990-91 avg.2 high" low3 1992:Q4 1993:Q4 low 1992:Q4 1993:Q4 Total index 81.9 84.8 78.1 80.4 82.3 -.2 -.2 -.7 Manufacturing 81.2 85.1 76.7 79.4 81.5 .1 -.2 -.7 Primary processing 82.2 89.1 78.0 82.3 85.3 .1 -.4 -.2 Advanced processing 80.6 83.3 76.0 78.1 79.9 -.1 -.2 -.9 Durable manufacturing 79.0 83.9 73.8 76.8 80.7 .0 -.9 -1.7 Lumber and products 24 83.1 93.3 76.2 87.3 91.1 -.7 -.3 -1.1 Furniture and fixtures 25 81.7 86.8 71.6 77.6 80.7 -.1 -2.2 -5.1 Stone, clay, and glass products 32 77.9 83.7 71.6 75.5 78.1 .6 -2.2 -3.5 Primary metals 33 80.1 92.9 74.4 82.2 89.3 .1 1.0 3.6 Iron and steel 331,2 79.8 95.7 72.2 82.1 91.4 -.1 1.3 4.9 Raw steel 79.2 92.7 71.4 81.7 88.4 .2 .6 2.8 Nonferrous 333-6,9 80.9 88.9 75.8 82.3 86.2 -.1 .5 1.6 Fabricated metal products 34 77.2 82.0 72.0 74.5 78.8 .2 -.6 -.1 Industrial machinery and equipment 35 80.8 83.7 71.4 77.3 85.9 -1.7 -4.4 -6.5 Computer and office equipment 357 80.5 84.4 63.4 74.4 87.6 -4.0 -7.6 -12.7 Electrical machinery 36 80.4 84.9 77.3 79.6 84.0 .6 -1.6 -2.4 Transportation equipment 37 74.9 84.2 70.5 73.1 74.8 .4 1.1 -.1 Motor vehicles and parts 371 75.7 84.5 57.3 74.9 84.3 -.6 2.9 1.3 Autos and light trucks4 89.6 53.7 75.8 85.6 .0 1.0 1.1 Aerospace and miscellaneous 372-6,9 75.5 88.3 78.5 71.2 64.2 .4 -.8 -1.6 Instruments 38 82.0 81.2 76.1 75.8 72.7 1.1 2.7 1.8 Miscellaneous 39 75.6 80.1 72.9 74.8 75.3 .0 -2.4 -2.6 Nondurable manufacturing 83.5 86.8 80.4 82.8 82.6 .0 .6 .7 Foods 20 82.3 83.3 80.8 81.0 79.4 .0 -.2 -1.1 Tobacco products 21 91.6 102.4 79.3 92.5 81.5 -.3 1.3 .7 Textile mill products 22 86.2 92.1 78.5 90.0 89.1 -.2 -.1 -1.6 Apparel products 23 81.1 84.2 74.9 80.5 79.6 .3 1.9 3.0 Paper and products 26 89.7 94.9 86.3 87.7 91.1 .3 -.7 -.1 Printing and publishing 27 86.5 92.3 78.5 81.7 82.1 .1 4.4 5.7 Chemicals and products 28 80.0 85.9 79.4 80.9 80.5 .9 -.6 -.4 Petroleum products 29 85.5 88.5 84.5 90.3 93.3 .4 .6 -.2 Rubber and plastics products 30 83.6 90.5 78.3 82.7 84.1 -.2 .4 1.0 Leather and products 31 81.9 83.8 76.4 81.9 82.1 .9 -3.5 -6.5 Mining 87.4 87.0 86.8 87.6 87.6 .0 .1 -.5 Metal mining 10 78.3 87.5 80.0 85.9 87.5 .6 -1.4 -2.7 Coal mining 12 87.0 91.4 82.9 83.1 79.6 -.2 1.6 .7 Oil and gas extraction 13 88.3 86.9 87.8 90.0 90.7 .0 -.1 -.7 Stone and earth minerals 14 83.8 90.0 77.9 79.5 80.5 3 .0 -.3 Utilities 86.7 92.6 83.1 86.2 86.4 -.3 -.8 -.4 Electric 491,3pt 88.8 94.8 86.3 88.0 87.4 -1.1 -.9 -.7 Gas 492,3pt 82.5 85.5 68.3 80.1 82.8 .0 -.6 .7 1. Standard Industrial Classification. group during the period in which overall utilization generally peaked— 2. Utilization rates before 1990 were not revised in the current revision. " 1988-89 high" (bottomed out—" 1990-91 low"). 3. Figures are the highest (lowest) monthly rate for the given industry 4. Series begins in 1977. upward revision in production raised utilization, try remained near its average level in late 1992. As while for leather and products, a downward revi- a result, capacity growth for computer and office sion in production led to lower utilization. The equipment for 1990 through 1993 is now estimated largest downward revision in utilization rates was to have been averaged about 14 percent per year, for computer and office equipment; the change was still well below the rapid growth of output in 1992 based in part on the results of the Census Bureau and 1993. • survey, which showed that utilization for this indus- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

227 Industrial Production and Capacity Utilization for January 1994 Released for publication February 15 growth in production at manufacturing establishments to just 0.2 percent, compared with an aver- Industrial production rose 0.5 percent in January: age monthly advance of 0.9 percent during the final the December gain was revised upward, to 0.9 per- quarter of 1993. Steel, appliances, and motor vehicent. Severe weather during January, coupled with cles and parts were among the industries with the earthquake in California, helped constrain the the most significant disruptions. Conversely, the Industrial production indexes Twelve-month percent change Twelve-month percent change 1988 1989 1990 1991 1992 1993 1994 1988 1989 1990 1991 1992 1993 1994 Capacity and industrial production Ratio scale, 1987 production =100 Ratio scale, 1987 production = 100 — Total industry — 140 — Manufacturing — — 140 Capacity ' Capacity 120 120 100 ^^ ~ 100 V ^ V ^y Production /S Production 80 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing 90 90 Utilization Utilization ^^ 80 —- 80 70 70 i i i i i i i i i i i i i i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1980 1982 1984 1986 1988 1990 1992 1994 1980 1982 1984 1986 1988 1990 1992 1994 All series are seasonally adjusted. Latest series, January. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 Federal Reserve Bulletin • March 1994 Industrial production and capacity utilization, January 19941 Industrial production, index, 1987=100 Percentage change CCCaaattteeegggooorrryyy 11999933 11999944 19932 19942 JJaann.. 11999933 ttoo Oct.r Nov.r Dec.r Jan.P Oct.r Nov.r Dec/ Jan.P JJaann.. 11999944 Total 111.9 112.8 113.9 114.4 .6 .8 .9 .5 4.7 Previous estimate 112.0 113.0 113.8 .1 .9 .7 Major market groups Products, total3 111.2 112.2 113.0 113.5 .6 .8 .7 .5 4.5 Consumer goods 109.2 109.9 110.1 110.4 .7 .6 .2 .3 2.0 Business equipment 137.7 139.8 142.1 144.0 1.0 1.5 1.7 1.3 11.1 Construction supplies 98.6 99.1 101.0 101.4 .8 .5 1.9 .3 7.8 Materials 112.8 113.7 115.2 115.7 .5 .8 1.3 .5 5.2 Major industry groups Manufacturing 112.9 114.1 115.2 115.4 .7 1.0 1.0 .2 5.0 Durable 116.2 118.1 120.0 120.7 1.0 1.6 1.7 .6 8.2 Nondurable 108.8 109.2 109.3 108.8 .2 .3 .1 -.4 .8 Mining 98.0 96.3 96.8 97.6 .7 -1.8 .5 .8 -.6 Utilities 114.9 116.0 117.1 121.2 -1.2 .9 .9 3.5 6.9 Capacity utilization, percent MEMO Capacity, cceennttaaggee 1993 1994 cchhaannggee,, Average, Low, High, JJaann.. 11999933 1967-92 1982 1988-89 Jan. Oct.r Nov/ Dec/ Jan.P ttoo JJaann.. 11999944 Total 81.9 71.8 84.8 80.9 81.7 82.2 82.9 83.1 1.9 Manufacturing 81.2 70.0 85.1 80.0 80.8 81.5 82.2 82.1 2.2 Advanced processing 80.6 71.4 83.3 78.8 79.3 79.9 80.5 80.7 2.7 Primary processing 82.2 66.8 89.1 82.9 84.4 85.3 86.1 85.5 1.1 Mining 87.4 80.6 87.0 87.8 88.4 86.9 87.4 88.2 -1.0 Utilities 86.7 76.2 92.6 85.1 85.6 86.4 87.1 90.1 1.0 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. weather helped boost production at utilities and month, led again by strong gains in the production mines, as demand for both electricity and gas of computers. The output of industrial equipment, surged. At 114.4 percent of its 1987 average, indus- which had risen sharply toward the end of 1993, trial production was 4.7 percent higher in January posted only a small gain in January. than it was a year ago. The utilization of total The rate of growth in the output of construction industrial capacity advanced 0.2 percentage point, supplies fell from 1.9 percent to 0.3 percent and to 83.1 percent, which is 2.2 percentage points that of materials from 1.3 percent to 0.5 percent. above the year-ago level but 1.7 percentage points Among materials, the growth of durables declined, below the 1988-89 peak. from 1.8 percent to 0.3 percent and was led by When analyzed by market group, the data show weather-affected losses in the production of steel that the output of consumer goods grew 0.3 percent products and motor vehicle parts and supplies. The in January, a rate of increase about the same as production of nondurable materials declined December's. Within this market group, the effects 0.6 percent after having increased during each of of the weather were somewhat offsetting: Many the three previous months. In contrast, the producplants in the motor vehicles and appliance indus- tion of energy-related materials grew 1.7 percent. tries closed for a day or more, but the production of When analyzed by industry group, the data show electricity and gas for residential use rose sharply. that reflecting the negative effects of January's The rapid expansion in the output of business severe weather, manufacturing output expanded equipment excluding motor vehicles continued last just 0.2 percent. Production by manufacturers of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 229 durable goods grew 0.6 percent, compared with ble goods declined 0.4 percent on a broad front. increases of 1.6 percent in November and 1.7 per- The output at utilities rose a strong 3.5 percent; cent in December. Although growth in most dura- output had risen 0.9 percent in each of the two ble goods industries slowed considerably in Janu- previous months. The output at mines increased ary, the level of production in the iron and steel 0.8 percent, in part because of an increase in coal industry actually fell 5.7 percent. The output of production. The utilization rate in manufacturing motor vehicles and parts producers increased only edged down, to 82.1 percent; the rate in advanced- 1.7 percent, well short of the increases of 4.5 per- processing industries inched up 0.2 percentage cent to 7.8 percent posted during the previous three point and that in primary-processing industries fell months. Production by manufacturers of nondura- 0.6 percentage point. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 Statement to the Congress Statement by Alan Greenspan, Chairman, Board The Federal Reserve, through its deliberately of Governors of the Federal Reserve System, accommodative stance, has played a key role in before the Joint Economic Committee, U.S. the restructuring process. But it is important to Congress, January 31, 1994 emphasize that monetary policy must not overstay accommodation: Maintaining the confidence As you know, the Federal Reserve will be meet- of financial market participants has been crucial ing later this week and will submit its semiannual for sustaining the declines in inflation expectareport on monetary policy to the Congress in late tions and, hence, in long-term interest rates that February. At that time, I will be in a position to have facilitated the balance sheet adjustments to address more specifically our expectations for date. The actions taken last year to reduce the economic growth and inflation and for monetary federal budget deficit have been instrumental in policy in 1994. Under the circumstances, my creating the basis for declining inflation expectaopening remarks this morning will focus on iden- tions and easing pressures on long-term interest tifying the major tendencies that are currently rates. Although we may not all agree on the visible in the economy and the broad consider- specifics of the deficit reduction measures, the ations that will likely be shaping our policy financial markets are apparently inferring that, decisions in the weeks and months ahead. on balance, the federal government will be com- As you may recall, during my appearances peting less vigorously for private saving in the before this committee in recent years I discussed years ahead. in detail the structural imbalances that I believed Partly because of these structural adjustments, were impeding U.S. economic growth. I re- the foundations of the economic expansion are ferred, in particular, to the enormous strains on looking increasingly well entrenched. Real gross the balance sheets of many households and bus- domestic product rose at an annual rate of nearly inesses. Those strains, which had grown out of 3 percent in the third quarter of 1993, and the the excessive debt expansion of the 1980s, were advance estimate for the fourth quarter indicates exacerbated by the subsequent weakness in real growth of nearly 6 percent. The labor market has estate prices in the early 1990s. Moreover, these also shown signs of notable improvement. Paydifficulties spilled over to the financial intermedi- roll employment rose about 2 million last year, aries, which—faced with mounting loan losses and unemployment dropped appreciably; the unand with pressure from the markets and regula- employment rate for December 1993, at 6.4 pertors to improve their capital ratios—restricted cent, was almost a full percentage point below credit supplies to many small firms and other the level of late 1992. borrowers. The greater buoyancy in economic activity of Considerable progress has been made in cor- late has been evident across the household and recting these imbalances. Many households and business sectors. Housing construction, stimubusinesses have materially improved their finan- lated by mortgage rates that are the lowest in cial positions—as evidenced by the drop in debt- more than twenty-five years, has increased markservicing burdens for all sectors and the decline edly; and consumer spending, after being at a lull in debt-to-equity ratios for businesses. In addi- in the first quarter of 1993, has posted sizable tion, banks and other financial institutions, hav- gains over the past three quarters. Outlays on ing replenished depleted capital bases, have be- consumer durable goods have been especially gun to demonstrate a greater willingness to make robust, in part to make up for the spending on loans. motor vehicles that was deferred during the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 231 1990-91 recession and the early expansion pe- omies of some of our major trading partners, riod. In addition, the pickup in home sales is which has continued to constrain our export bolstering purchases of furniture and appliances. performance. Among the industrial countries, Business fixed investment was very strong Canada and the United Kingdom appear to be throughout 1993. It rose nearly 15 percent in real emerging from deep slumps. However, signs of terms over the four quarters of the year, and near-term improvements in Japan and continenorder books for early 1994 are apparently filling tal Europe are scant. In Japan, asset deflation rapidly. Stimulated by dramatic innovations in and associated financial problems continue to products and extensive price cutting by the com- hold back growth, and in Germany the farputer manufacturers, real outlays for office and reaching and costly adjustments associated with computing equipment have continued to soar as unification are still a restraining factor. In reaccost-conscious businesses have rushed to exploit tion to their economies' weak performances, the new technologies. And with a favorable out- monetary officials in the two countries fostered look for overall business sales, ample profits and continued, cautious reductions in interest rates in cash flows, and relatively low cost of capital, 1993—as did officials in most other industrial firms have also increased their outlays on more countries. Government budget deficits generally traditional types of equipment. In addition, ac- worsened last year because of cyclical factors— tivity in the nonresidential construction sector is and, in some cases, endeavors to stimulate definally recovering from the depressed levels of mand. This deterioration of budget positions has the past few years. limited the scope for further fiscal action in most Business inventories have been expanding countries. only moderately in the aggregate in recent quar- As for the developing nations, economic conters, and stocks generally are lean, especially at ditions in Asia, fueled in part by exceptionally manufacturing firms. If businesses decide that rapid growth in China, remained strong in 1993. higher levels of stocks are appropriate, we could In Latin America, however, real growth in Mexsee production boosted substantially over the ico fell to near zero, reflecting the depressing next few quarters. Order lead times on the deliv- effects of a policy attempting to contain inflationery of materials, however, remain low and do ary pressures and, for a time, growing uncernot, at least for now, suggest an acceleration in tainty about whether the North American Free inventory investment. Trade Agreement (NAFTA) would be imple- Although recent economic developments, on mented. the whole, have been favorable, the expansion The passage of NAFTA in November reprehas remained uneven. In the labor market, firms' sented a significant achievement for North Amerefforts to restructure and improve productivity ica. Besides reducing tariff and nontariff barriers are continuing to restrain hiring, and concerns on trade, NAFTA extends liberalization to nonabout job security persist. In addition, employers traditional areas, such as financial services and seem to be relying to an unusual degree on the intellectual property. The trade agreement use of overtime and temporary employees, per- reached in December in the Uruguay Round of haps in part because of the cost of providing the General Agreement on Tariffs and Trade fringe benefits to permanent full-time workers. (GATT) also covers some of these nontraditional Moreover, not all business sectors are faring areas. Approval by the Congress of the GATT well. In particular, industries and regions that agreement would likely stimulate U.S. exports of depend heavily on military spending will con- high technology products. More broadly, these tinue to experience sizable dislocations and dis- agreements are significant because they repreruptions. Also, many state and local govern- sent a rejection by the United States and our ments are still struggling to reconcile a rising major trading partners of calls to turn inward in demand for services—especially in education, our economic and financial policies. health, and crime prevention and correction— Interpreting the economic data for the United with limited growth in revenues. States over the next few months will be espe- Another concern is the weakness in the econ- cially complicated. As you know, the Bureau of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 Federal Reserve Bulletin • March 1994 Labor Statistics is redesigning the household Historically, many such indicators have come survey of employment. Also, many key indica- from the financial sector: Money supply growth, tors of production and spending will be affected the slope of the yield curve, quality spreads, and by the earthquake in southern California and by credit flows are among the variables that have the extraordinary weather conditions elsewhere. helped the monetary authorities over the years Nevertheless, although growth in real gross do- act in advance of developing problems. In recent mestic product will almost surely slow apprecia- years, however, as a result of financial innovably from the rapid pace of late 1993, the eco- tions and the unusual nature of the most recent nomic fundamentals appear to be in place for business cycle, such indicators have, at times, further solid gains in the level of activity in the produced misleading signals. The broad money quarters ahead. and credit aggregates, for example, have sug- Recent data on prices and wages generally gested declining inflation in the United States— suggest that inflation remained in check through but by far more than has actually occurred. 1993, with the fourth-quarter to fourth-quarter Turning to nonfinancial variables, the degree change in the so-called core consumer price of slack in the economy is important because it index edging down to 3.1 percent, the lowest plays a major role in influencing whether inflation reading since the early 1970s. To be sure, the is increasing or decreasing. Over the longer haul, acceleration in domestic economic activity has however, the level of inflation—that is, the rate put some upward pressure on prices of a number of price change—depends crucially on price exof industrial materials, and measures of resource pectations and not on the degree of slack. In the utilization are considerably higher than they twenty years after World War II, most econowere six months ago. Nonetheless, productivity mists gave short shrift to expectations as a key growth has kept unit labor costs subdued, and determinant of inflation. Unemployment and inthe broad measures of inflation have remained flation were considered simple tradeoffs. A lower well contained. rate of unemployment was thought to be associ- No doubt, many of the forces that helped ated with a higher, though constant, rate of restrain inflation in 1993 will continue to do so in inflation; conversely, a higher rate of unemploy- 1994. Businesses will almost certainly remain ment was associated with a lower rate of inflaintent on boosting productivity and controlling tion. costs, and competition from abroad will continue But the experience of the past three decades to deter price increases—even in markets with has demonstrated that what appears as a tradeoff limited spare domestic capacity. between unemployment and inflation is quite History suggests, however, that higher price ephemeral and misleading. Over the longer run, inflation tends to surface rather late in the busi- no such tradeoff is evident. Attempts to force ness cycle and, hence, is not a good leading feed the economy beyond its potential have led in indicator of emerging troubles. By the time infla- the past to higher inflation and, ultimately, not to tion pressures are evident, many imbalances that lower unemployment but to higher unemployare costly to rectify have already developed, and ment, as destabilizing forces and uncertainties only harsh monetary therapy can restore the associated with inflation induced economic confinancial stability necessary to sustain growth. traction. In that regard, experience both here and This situation regrettably has arisen too often in abroad suggests that lower levels of inflation are the past. conducive to the achievement of greater produc- The challenge of monetary policy is to detect tivity and efficiency and, therefore, higher stansuch latent instabilities in time to contain them. dards of living. Unfortunately, they are rarely visible until rela- Currently we have the difficult task of assesstively far advanced. Moreover, once they are ing the appropriate time to move away from an identified, policy actions to counter them take extended period of monetary accommodation. time to have their effects. Thus, the need of The policy was established purposefully, largely monetary policymakers for early indicators of to address the balance sheet strains I mentioned developing problems is evident. earlier. This monetary policy has been effective Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 233 in that households and businesses are now in judgment as to how long we can continue monestronger financial condition. But the job is not yet tary accommodation without sowing the seeds of complete. Unfortunately, although we can assess another bout of inflationary instability accompahow far the process of repairing balance sheets nied by steeply rising long-term rates. Such an has proceeded, we do not know how much farther outcome would bode ill for economic growth in it will go, mainly because of the difficulty of 1995 and beyond. On the other hand, we will also gauging desired levels of debt. What is clear, have to judge whether higher rates could slow the however, as I indicated here a year ago, is that we necessary completion of balance sheet repair to a did not need to complete the job before evidence point where economic growth is inhibited. of faster economic growth emerged. We have Short-term interest rates are currently abnorbeen growing in fits and starts. But as we mally low in real terms. At some point, absent an smoothed through the data of the past two years, unexpected and prolonged weakening of ecowe have seen real GDP rise at a respectable 3.4 nomic activity, we will need to move them to a percent annual rate—sufficient to reignite job cre- more neutral stance. Such an action would not be ation and significantly reduce unemployment. taken to cut off or limit the economic expansion Several questions will have to be addressed by but rather to sustain and enhance it. The forethe Federal Open Market Committee. Foremost most contribution monetary policy can make to will be what time will be appropriate to move to achieving higher standards of living in the United a somewhat less accommodative level of short- States is to provide the stable financial foundaterm interest rates. We will have to make the tion for continued economic growth. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 Announcements DAVID W. MULLINS, JR: in recent years, have been essentially resolved, I feel RESIGNATION AS VICE CHAIRMAN now is the appropriate time to turn to new and different challenges in the private sector. AND AS A MEMBER OF THE BOARD As one who has roots in Arkansas, I have been pleased to have participated in economic policy-making during David W. Mullins, Jr. resigned as a member of the the first year of your Administration. I have very much Board of Governors, effective as of the close of enjoyed working with the excellent people whom you have placed in senior economic policy positions. I leave business, February 14, 1994. Following is the text fully confident in the strength and vitality of our nation's of his letter to President Clinton: economy. January 31, 1994 Sincerely yours, The Honorable William Jefferson Clinton David W. Mullins, Jr. The President of the United States The White House Washington, DC 20500 WAYNE D. ANGELL: RETIREMENT AS A Dear Mr. President: MEMBER OF THE BOARD OF GOVERNORS I shall announce tomorrow my intention to resign as Wayne D. Angell retired as a member of the Board Vice Chairman and Member of the Board of Governors of Governors, effective as of the close of business, of the Federal Reserve System effective as of the close February 9, 1994. His term as a Board member of business February 14, 1994. Since I shall enter the expired January 31, 1994. Following is the text of private sector later this month, I shall not attend the upcoming meeting of the Federal Open Market Commit- his letter to President Clinton: tee on February 3 and 4. It has been a great honor for me to devote my energies January 14, 1994 to public service for the past six years at the Federal Reserve, the Treasury and elsewhere. I have found this The Honorable William Jefferson Clinton work to be extraordinarily challenging and rewarding. The President of the United States During this time, the U.S. and global financial systems The White House and economies encountered a variety of difficulties. Washington, DC 20500 These included the stock market crash of 1987, the savings and loan crisis, failures and stress in the banking Dear Mr. President: system, problems in securities firms and markets, including the markets for high yield bonds and Treasury secu- In 1985, President Reagan asked me to serve the rities. And of course, the U.S. and world economies have people of the United States as a member of the Board of experienced a wrenching period of economic recession. Governors of the Federal Reserve System for the remain- In my view, much progress has been made in address- der of the term ending January 31, 1994. Even though ing these problems. U.S. markets are vibrant and healthy, the Federal Reserve Act extends my stay in office until a the U.S. banking system is well capitalized and profit- successor is qualified, I choose to terminate my official able, the nation's financial system is sound. The U.S. duties as of February 10, 1994, soon after the minutes economy is now strong, with sustained growth well of the last Federal Open Market Committee meeting I entrenched and inflation well contained. I have been attended are published. fortunate to have had the opportunity to contribute in It has been my privilege to have served my country in some modest way to financial reforms and economic this position. To the best of my ability I have kept the policy in these areas. pledge I made to President Reagan, the United States Since most of the financial and economic problems, Senate, and the American people to give first priority to which have been the focus of my professional energies stabilize the value of our currency. In my view, the best Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

235 contribution monetary policy can make to our nation's member Council, with staggered three-year terms goals of economic growth and expanded employment is of office, meets three times a year. to protect our citizens from a continuous erosion in the Jean Pogge, Vice President of South Shore Bank value of our currency. The payoff is already apparent in in Chicago, Illinois, was designated Chairman. Her lower interest rates and increased labor productivity. term will run through December 1994. James West, I am pleased by the successful reduction of the underlying inflation rate during the period the Board of Gover- President of Jim West Financial Group in Tijeras, nors was enunciating a goal of zero inflation. But, if the New Mexico, was designated Vice Chairman. His quest for price-level stability is replaced by an accep- term on the Council expires in December 1995. tance of an inflation rate stabilized at say IVi percent, The seven new members are the following: then we are accepting the fact that the domestic value of the dollar will be cut in half every generation, 28 years. I believe that any country that chooses to cheat its citizens Alvin J. Cowans by devaluing its currency defrauds the trust that people Orlando, Florida have in their government. I hope you understand the spirit in which I continue Mr. Cowans is President and CEO of McCoy Federal this crusade. Credit Union, a community-chartered credit union with more than $107 million in assets. He represents Region Respectfully yours, III on the Board of Directors of the National Association of Federal Credit Unions. Mr. Cowans has earned Wayne Angell numerous achievement awards for community service and was named by the Orlando Sentinel newspaper in December 1989 as the Central Florida Business Jour- STATEMENT BY CHAIRMAN GREENSPAN nal's "Person in Profile." In 1992 he was listed in Who's ON THE RESIGNATION OF VICE CHAIRMAN Who of American Business Leaders. Mr. Cowans cur- MULLINS AND THE RETIREMENT OF rently teaches required courses for the Credit Union Executive Exam to employees from credit unions in the GOVERNOR ANGELL surrounding area and has served as an Adjunct Professor at Valencia Community College. Chairman Alan Greenspan of the Federal Reserve Board made the following statement on February 1, 1994: Elizabeth G. Flores Laredo, Texas I wish my two departing colleagues well in their Ms. Flores is Senior Vice President and Community future endeavors. Only those of us who have had the Reinvestment Officer for Laredo National Bank, with privilege of working with David Mullins and Wayne responsibility for the Community Development Depart- Angell on a day-to-day basis can fully appreciate the ment and community reinvestment program. She has contributions they have made to the success of the been with the bank eighteen years; her duties have Federal Reserve System during their tenures. To say they included managing more than $900 million in liabilities will be missed is an understatement. They have been for the bank, developing sales strategies for various close personal friends and trusted colleagues. investment accounts, and counseling the bank's customers on investment opportunities. Ms. Flores has a long history of civic and consumer advocacy in her home- APPOINTMENT OF NEW MEMBERS TO THE town. She is a member of the Border Low Income CONSUMER ADVISORY COUNCIL Housing Coalition, which recently issued the Border Housing and Community Development Partnership The Federal Reserve Board on January 25, 1994, report outlining a series of action steps for revitalizing the barrios and colonias along the Texas-Mexico border. named seven members to its Consumer Advisory She also serves on the statewide boards of the Texas Council to replace those members whose terms Department of Housing and Community Affairs and have expired and designated a new chairman and Texans' War on Drugs. vice chairman of the council for 1994. The Consumer Advisory Council was established by the Congress in 1976, at the suggestion of Katharine W. McKee the Board, to advise the Board on the exercise of its Durham, North Carolina duties under the Consumer Credit Protection Act Ms. McKee is Associate Director of the Center for and on other consumer-related matters. The thirty- Community Self-Help. The center and its affiliates con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 Federal Reserve Bulletin • March 1994 stitute one of the nation's most successful community Lorraine VanEtten development banks. With assets of $50 million, Self- Troy, Michigan Help specializes in financing small businesses, low- Ms. VanEtten is Vice President and Community Lending income homebuyers, and nonprofit corporations that can- Officer of Standard Federal Bank of Troy. Her primary not obtain credit from traditional sources. Before joining responsibility is to direct the development, implementhe center, Ms. McKee was program officer in the Rural tation, and evaluation of mortgage lending programs Poverty Program at the Ford Foundation. She has been designed for low- and moderate-income borrowers. Ms. active in forming policy recommendations on commu- VanEtten reviews all marginal and rejected minority or nity development banking and has worked closely with a low- and moderate-income applicants; if she approves national coalition of community development financial them, they are placed in the bank's special Tracking institutions to provide information and policy recom- Program. Ms. VanEtten also monitors the bank's complimendations to congressional banking committees and to Clinton Administration staff. Ms. McKee chairs the ance with the Community Reinvestment Act (CRA), Business Development Committee of the North Carolina conducts CRA compliance seminars for the bank's mort- Rural Economic Development Center. gage lending personnel, and meets with business, civic, and community-based organizations regarding the bank's efforts to stimulate urban revitalization. She is a member of the Housing Task Force of the Savings and Anne B. Shlay Community Bankers of America. Philadelphia, Pennsylvania Dr. Shlay is an Associate Director with the Institute for Public Policy Studies at Temple University. Previously, Lily K. Yao she was a Research Scientist at the Johns Hopkins Insti- Honolulu, Hawaii tution for Policy Studies and Associate Professor of Ms. Yao is President and CEO of Pioneer Federal Sav- Sociology. Dr. Shlay was among the first to conduct ings, a wholly owned independent subsidiary of First research using computerized Home Mortgage Disclosure Hawaiian, Inc. She is the first woman president of a Act (HMDA) data and has conducted numerous studies major financial institution in Hawaii. Ms. Yao has been of credit flow patterns across metropolitan areas. with Pioneer Federal since 1968; her duties have Because Dr. Shlay is familiar with a variety of points of included managing its eighteen branches, building up view within and outside the banking industry, her work capital from a negative $187,000 to more than $62 milhas been used to develop programs in both the public lion, and converting from mutual to stock ownership. and private sectors. Dr. Shlay is currently conducting Currently she is a member of the board of directors of research on residential finance and consumer services in the Savings and Community Bankers of America, repre- Maryland metropolitan areas. The first part of the senting nine states (Alaska, Hawaii, Idaho, Montana, research is an examination of community credit-flow Nevada, Oregon, Washington, Wyoming, and Utah). patterns based on HMDA data for the 1985-91 period; Previously, she served on the board of directors of the the second part relates to looking at consumer services Federal Home Loan Bank of Seattle, representing across financial institutions. This research is supported Hawaii and Guam. She has also served as president of by a consortium of both lenders and public sector the Hawaii Chapter of the American Red Cross and as participants. president of the Chinese Chamber of Commerce of Hawaii. She was recently appointed by the Governor of Hawaii to a four-year term on the Board of Regents of Reginald J. Smith the University of Hawaii. Kansas City, Missouri Other council members, whose terms continue Mr. Smith is President of United Missouri Mortgage Company, which is a member of the United Missouri through 1994 and 1995, are listed below (together Bankshares, Inc., banking system. He has been with the with the expiration date of each one's term of system for twelve years, ten of those with the mortgage office). operation in which he has served in various capacities. Mr. Smith currently manages daily operations and finan- Barry A. Abbott, Partner, Morrison & Foerster, San cial management for the firm. He is active in various Francisco, California, December 31, 1994 mortgage banking organizations; currently he serves on the Board of Governors of the Mortgage Bankers Asso- James R. Adams, Corporate Vice President and Comciation of America and is a member of the executive pliance Officer, CoreStates Financial Corporation, Philacommittee and the chairman of the diversity committee. delphia, Pennsylvania, December 31, 1994 He previously served as the chairman of the Legislative Committee for the Greater Kansas City Mortgage Bank- John A. Baker, Senior Vice President, Equifax, Inc., ers Association. Atlanta, Georgia, December 31, 1994 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 237 Mulugetta Birru, Executive Director, Urban Redevel- Michael W. Tierney, Director, Local Initiatives Supopment Authority of Pittsburgh, Pittsburgh, Pennsyl- port Corporation, Washington, District of Columbia, vania, December 31, 1994 December 31, 1994 D. Douglas Blanke, Director of Consumer Policy, Grace W. Weinstein, Financial Writer and Consultant, Office of the Attorney General, St. Paul, Minnesota, Englewood, New Jersey, December 31, 1995 December 31, 1995 Robert O. Zdenek, Senior Program Officer, Annie E. Casey Foundation, Greenwich, Connecticut, Decem- Genevieve Brooks, Deputy Borough President, Office ber 31, 1995 of the Bronx Borough President, Bronx, New York, December 31, 1994 Cathy Cloud, Enforcement Program Director, National OPERATING INCOME OF THE FEDERAL Fair Housing Alliance, Washington, District of Colum- RESERVE BANKS: PRELIMINARY FIGURES bia, December 31, 1994 Preliminary figures indicate that operating income Michael D. Edwards, President, Prairie Security Bank, Yelm, Washington, December 31, 1994 of the Federal Reserve Banks amounted to $18,913 billion during 1993. Net income before Michael Ferry, Staff Attorney, Consumer Unit, Legal payment of dividends, additions to surplus, and Services of Eastern Missouri, Inc., St. Louis, Missouri, payments to the Treasury totaled $16,528 billion. December 31, 1995 About $15,985 billion was paid to the U.S. Treasury during 1993. Norma L. Freiberg, Community Activist, New The Federal Reserve System derives its income Orleans, Louisiana, December 31, 1995 primarily from interest earned on U.S. government securities that the Federal Reserve has acquired Lori Gay, Executive Director, Los Angeles Neighborhood Housing Services, Los Angeles, California, through open market operations. Income from December 31, 1995 the provision of financial services amounted to $756 million. Bonnie Guiton, Dean, Mclntire School of Commerce, Operating expenses of the twelve Reserve Banks University of Virginia, Charlottesville, Virginia, Decemand branches totaled $1,609 billion. Also, earnings ber 31, 1995 credits totaling $182 million were granted to depository institutions under the Monetary Control Act Gary S. Hattem, Vice President, Community Develof 1980. Assessments to Reserve Banks for Board opment Group, Bankers Trust Company, New York, New York, December 31, 1994 expenditures totaled $140 million, and the cost of currency amounted to $356 million. Ronald A. Homer, Chairman and Chief Executive Net deductions from income amounted to Officer, Boston Bank of Commerce, Boston, Massachu- $201 million. Net deductions from income resulted setts, December 31, 1995 primarily from the initial accrual of postretirement employee benefits required by the adoption of the Thomas L. Houston, Executive Director, The Dallas Statement of Financial Accounting Standards Black Chamber of Commerce, Dallas, Texas, Decem- (SFAS)No. 106, "Employers' Accounting for Postber 12, 1995 retirement Benefits Other Than Pensions." This Edmund Mierzwinski, Consumer Advocate, U.S. Pub- accrual was partially offset by gains on the sales of lic Interest Research Group, Washington, District of assets denominated in foreign currencies and Columbia, December 31, 1994 securities from the System Open Market Account. Statutory dividends to member banks were John V. Skinner, President and Chief Executive Offi- $195 million. cer, Jewelers Financial Services, Inc., Irving, Texas, Under the policy established by the Board of December 31, 1994 Governors at the end of 1964, all net income after the statutory dividend to member banks and the Lowell N. Swanson, (Retired) President, United Finance Co., Portland, Oregon, December 31, 1994 amount necessary to equate surplus to paid-in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 Federal Reserve Bulletin • March 1994 capital is transferred to the U.S. Treasury as interest proposal to amend its Regulation M (Consumer on Federal Reserve notes. Leasing). Comments should now be received by February 24 and should refer to Docket No. R-0815. APPOINTMENT OF NEW CLASS C DIRECTORS The Federal Reserve Board on January 25, 1994, extended for thirty days the period for comment on The Federal Reserve Board announced on Janproposed changes to Regulation BB (Community uary 6, 1994, the appointment of new Class C Reinvestment), which carries out provisions of the directors at seven Reserve Banks, including a new Community Reinvestment Act (CRA). Comments deputy chairman at the Federal Reserve Bank of should now be received by March 24, 1994, and New York. should refer to Docket No. R-0822. Each Reserve Bank has a board of directors of The Federal Reserve Board on January 10, 1994, nine members. The Board of Governors in Washextended for thirty days the period for comment on ington appoints three of these directors and desiga proposal to amend its Regulation DD (Truth in nates one of its appointees as chairman and a Savings), dealing with the calculation of the annual second as deputy chairman. percentage yield for certain deposit accounts. Com- Following are the names of the newly appointed ments should now be received by February 14 and Class C directors: should refer to Docket No. R-0812. New York. David A. Hamburg, President, Carnegie The Federal Reserve Board published for com- Corporation, New York, New York. Mr. Hamburg was ment on January 31, 1994, a proposed official staff also designated Deputy Chairman for 1994. commentary to Regulation DD. Comments are requested by April 1, 1994. Philadelphia. Joan Carter, President and COO, United Medical Corporation, Haddonfield, New Jersey. Cleveland. Robert Y. Farrington, Executive Secretary- PUBLICATION OF REVISED LISTS Treasurer, Ohio State Building and Construction Trades OF MARGINABLE OTC STOCKS AND Council, Columbus, Ohio. OF FOREIGN MARGIN STOCKS Atlanta. Daniel E. Sweat, Jr., Coordinator, The The Federal Reserve Board published on Janu- Atlanta Project, Atlanta, Georgia. ary 28, 1994, a revised List of Marginable OTC St. Louis. Veo Peoples, Jr., Partner, Peoples, Hale & Stocks that are subject to its margin regulations. Coleman, St. Louis, Missouri. Also published was the List of Foreign Margin Stocks (Foreign List) for foreign equity securities Minneapolis. David A. Koch, Chairman and CEO, that meet the criteria in Regulation T (Credit by Graco, Inc., Golden Valley, Minnesota. Brokers and Dealers). Kansas City. Colleen D. Hernandez, Executive Direc- The lists were effective February 14, 1994, and tor, Kansas City Neighborhood Alliance, Kansas City, supersede the previous lists that were effective Missouri. November 9, 1993. The Foreign List specifies those foreign equity Each was appointed to a three-year term beginsecurities that are eligible for margin treatment at ning January 1994. broker-dealers. There were eighteen additions to The names of Reserve Bank chairmen and depthe Foreign List, which now contains 317 foreign uty chairmen for 1994, with the exception of the equity securities. There were no deletions. deputy chairman at New York, were announced in The changes that have been made to the revised September. over-the-counter (OTC) list, which now contains 3,744 OTC stocks, are as follows: PROPOSED ACTIONS • Two hundred seventy-four stocks have been The Federal Reserve Board on January 25, 1994, included for the first time, 238 under National extended for thirty days the comment period on a Market System (NMS) designation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 239 • Seventeen stocks previously on the list have OTC and Foreign List is scheduled for April been removed for substantially failing to meet the 1994. requirements for continued listing Besides NMS-designated securities, the Board • Fifty-nine stocks have been removed for will continue to monitor the market activity of reasons such as listing on a national securities other OTC stocks to determine which stocks meet exchange or involvement in an acquisition. the requirements for inclusion and continued inclusion on the OTC List. The Board publishes the OTC List for the information of lenders and the general public. It includes all OTC securities designated by the Board BULLETIN TABLE: ERRATA pursuant to its established criteria as well as all OTC stocks designated as NMS securities for The table below first appeared on page 93 in which transaction reports are required to be made "Residential Lending to Low-Income and Minority pursuant to an effective transaction reporting plan. Families: Evidence from the 1992 HMDA Data," Additional OTC securities may be designated as in the February 1994 issue of the Bulletin. Some of NMS securities in the interim between the Board's the figures in the tier of data labeled "Borrowers quarterly publications and will be immediately and loan characteristics" were incorrect; they have marginable. The next publication of the Board's now been corrected. 10. Distribution of loans, by neighborhood income, 19921 Low or Middle Upper Item moderate Total income income income Number (in thousands) 578 2,834 2,425 5,838 Distribution of loans (percentage of total)2 Number 9.9 48.6 41.5 100.0 Dollar amount 6.8 39.9 53.3 100.0 Type of loan Home purchase 38.1 34.1 31.3 33.3 Home improvement 16.3 11.1 7.8 10.7 Refinancings 45.6 54.8 61.0 56.4 Total 100.0 100.0 100.0 100.0 Distribution of home purchase loans by type (percentage of total) Conventional 6677..22 72.6 83.7 76.3 FHA-insured 25.7 19.7 10.9 17.0 VA-guaranteed 7.0 7.6 5.3 6.6 Total 100.0 100.0 100.0 100.0 MEMO: Extended to nonoccupant owners 9.4 5.1 3.3 4.9 Borrowers and loan characteristics Median borrower income relative to MSA median family income for all loans 100.3 118.7 168.6 137.7 Median loan amount relative to MSA median family income for all loans3 148.7 184.9 274.0 218.6 Median borrower income for all loans (thousands of dollars)3 42.2 49.8 71.0 57.9 Median loan amount for all loans (thousands of dollars)3 64.5 79.2 116.8 93.5 Race or ethnic group of borrower (percentage of the number of all loans) Black 11.8 3.3 1.9 3.5 Hispanic 10.9 3.7 2.5 3.9 Asian 4.6 3.5 4.2 3.9 1. Census tracts are categorized by the median family income for the tract to 120 percent of MSA median; Upper income, median family income more relative to the median family income for the metropolitan statistical area than 120 percent of MSA median. (MSA) in which the tract is located. Categories are defined as follows: Low 2. Excludes multifamily loans. or moderate, median family income less than 80 percent of the median 3. Averaged across census tracts in category. family income for MSA; Middle income, median family income 80 percent SOURCE. FFIEC, Home Mortgage Disclosure Act data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 Federal Reserve Bulletin • March 1994 PUBLICATION OF THE Banking and Monetary Statistics, 1941-1970, and Annual Statistical Digest, 1992 the Digest for 1970-79, for 1980-89, and yearly issues. A Concordance of Statistics will be in- The Annual Statistical Digest, 1992 is now avail- cluded with all orders. The Concordance provides able. This one-year Digest is designed as a compact a guide to tables that cover the same material in the source of economic, and especially financial, data. current and the previous single-year issues of the The Digest provides a single source of historical Digest, the ten-year Digest for 1980-89, and the continuations of the statistics carried regularly in Bulletin. the Federal Reserve Bulletin. Copies of the Digest at $25.00 each are available This issue of the Digest covers only 1992 unless from Publications Services, Mail Stop 127, Board data were revised for earlier years. It serves to of Governors of the Federal Reserve System, maintain the historical series first published in Washington, DC 20551. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

241 Legal Developments FINAL RULE—AMENDMENTS TO REGULATIONS Dynasty Classics Corporation: No par common G, T, U AND X Energy Conversion Devices, Inc.: $.01 par common The Board of Governors is amending 12 C.F.R. Parts 207, 220, 221 and 224, its Regulations G, T, U and X Future Communications Inc.: $.001 par common (Securities Credit Transactions; List of Marginable OTC Stocks; List of Foreign Margin Stocks). The List Industrial Funding Corp.: Class A, No par common of Marginable OTC Stocks (OTC List) is composed of Invitro International: Warrants (expire 05-16-96) stocks traded over-the-counter (OTC) in the United States that have been determined by the Board of Keene Corporation: $.0001 par common Governors of the Federal Reserve System to be subject to the margin requirements under certain Federal Neozyme Corporation: $.01 par common Reserve regulations. The List of Foreign Margin Stocks (Foreign List) is composed of foreign equity Tele-Communications, Inc.: Liquid yield options due securities that have met the Board's eligibility criteria 2008 under Regulation T. The OTC List and the Foreign TSL Holdings Inc.: $.01 par common List are published four times a year by the Board. This document sets forth additions to and deletions from W.W. Williams Company, The: $1.00 par common the previous OTC List and additions to the Foreign Wegener Corporation: $.01 par common List. Effective February 14, 1994, accordingly, pursuant Stocks Removed for Listing on a National to the authority of sections 7 and 23 of the Securities Securities Exchange or Being Involved in an Exchange Act of 1934, as amended (15 U.S.C. 78g and Acquisition 78w), and in accordance with 12 C.F.R. 207.2(k) and 207.6 (Regulation G), 12 C.F.R. 220.2(u) and 220.17 A&W Brands, Inc.: $.01 par common (Regulation T), and 12 C.F.R. 221.2(j) and 221.7 (Reg- Ahold N.V.: American Depositary Receipts ulation U), there is set forth below a listing of deletions Amoskeag Company: $1.00 par common from and additions to the OTC List and additions to Aritech Corp.: $1.00 par common the Foreign List. Autotrol Corporation: $.10 par common Deletions from the List of Marginable OTC Boston Five Bancorp, Inc.: $.01 par common Stocks Bytex Corporation: $.10 par common Checkpoint Systems, Inc.: $.10 par common Stocks Removed for Failing Continued Listing Compania Boliviana de Energia Electrica S. A.: No par Requirements common Corestates Financial Corporation: $1.00 par common All American Semiconductor, Inc.: Class B, Warrants Costco Wholesale Corporation: $.0033 par common (expire 06-18-97) Alliance Imaging, Inc.: $.01 par common Elmwood Bancorp, Inc. (Pennsylvania): $1.00 par common BKLA Bancorp (California): No par common Engraph, Inc.: $1.00 par common California Micro Devices Corp.: Warrants (expire First Amarillo Bancorporation, Inc.: $1.00 par 04-16-97) common Candies, Inc.: Warrants (expire 01-18-94) First Amfed Corporation: $.01 par common CBL Medical, Inc.: $.01 par common First Bancorp Indiana, Inc.: No par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 Federal Reserve Bulletin • March 1994 Gateway Fed Corporation (Ohio): $.01 par common Valley Bancorp, Inc.: $5.00 par common Geraghty & Miller, Inc.: $.01 par common Valley National Bancorp: No par common Gerrity Oil and Gas Corporation: $.01 par common Goody Products, Inc.: $.10 par common Washington Homes, Inc.: $.01 par common Wellington Leisure Products, Inc.: $.01 par common Heritage Bankcorp, Inc. (Michigan): $.01 par common Wisconsin Southern Gas Company, Inc.: $5.00 par common Integrated Health Services, Inc.: $.001 par common Wiser Oil Company, The: $3.00 par common Interfirst Bankcorp, Inc. (Michigan): $.01 par common Additions to the List of Marginable OTC Jackson Country Federal Bank, A Federal Savings Stocks Bank: Series A, preferred stock Jefferson Bank (Pennsylvania): $1.75 par common AAON, Inc.: $.001 par common ABC Rail Products Corporation: $.01 par common Kendall International, Inc.: $.01 par common Active Voice Corporation: No par common Advanced Technology Materials, Inc.: $.01 par com- Masco Industries, Inc.: $1.00 par common; 6% con- mon vertible debentures due 2011 AFC Cable Systems, Inc.: $.01 par common Meca Software, Inc.: $.01 par common Airport Systems International, Inc.: $.01 par common Medco Containment Services, Inc.: $.01 par common Aladdin Knowledge Systems, Ltd.: Ordinary Shares, Mid-State Federal Savings Bank (Florida): $1.00 NIS .01 par value par common Alliance Semiconductor Corporation: $.01 par com- Millicom Incorporated: $.01 par common mon Morrison Incorporated: $.01 par common Allied Capital Lending Corporation: $.0001 par common National Data Corporation: $.125 par common Allied Life Financial Corporation: No par common Alpha Microsystems: Warrants (expire 09-01-98) Ohio Bancorp: No par common American Mobile Satellite Corporation: $.01 par Oil-Dri Corporation of America: $.10 par common common Osmonics, Inc.: $.01 par common American Recreation Company Holdings Inc.: $.01 par common Pacific Bancorporation (California): $1.88 par com- American Telecasting, Inc.: $.01 par common mon Amerigon Incorporated: Class A, No par common Preferred Health Care Ltd.: $.01 par common Ameristar Casinos Inc.: $.01 par common Amrion Inc.: $.0011 par common Railroadmen's Federal Savings & Loan Association: Applied Innovation Inc.: $.01 par common $.01 par capital Applied Microbiology, Inc.: $.005 par common Applied Science & Technology Inc. : $.01 par common; Salem Sportswear Corporation: $.01 par common Warrants (expire 11-10-98) Secor Bank, Federal Savings Bank (Alabama): $.01 Arakis Energy Corporation: No par common par common Arris Pharmaceutical Corporation: $1.00 par common Simula, Inc.: $.01 par common Asante Technologies, Inc.: $.001 par common Statesman Group, Inc., The: $1.00 par common; Astoria Financial Corporation: $.01 par common 6-Va% convertible subordinated debentures Atlantic Beverage Co., Inc.: $.01 par common Stewart Information Services Corp.: $1.00 par common Banco McGlocklin Capital Corporation: Series A; $.01 Sun Coast Plastics, Inc.: $.01 par common par adjustable rate cumulative preferred Bankunited Financial Corporation (Florida): $.01 par Telematics International, Inc.: $.01 par common noncumulative perpetual preferred Total Energold Corporation: No par common Billy Blues Food Corporation: 9% cumulative convert- Total Pharmaceutical Care, Inc.: No par common ible preferred Tristate Bancorp, The (Ohio): $1.00 par common Bioject Medical Tech Inc.: No par common Bollinger Industries Inc.: $.01 par common United Mobile Homes, Inc.: $.10 par common Boston Chicken: $.01 par common United Thermal Corporation: $.10 par common Brothers Gourmet Coffees Inc.: $.001 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 243 C. Brewer Homes, Inc.: Class A, $.01 par common Fairfield Communities, Inc.: $.01 par common Cable Design Technologies Corporation: $.01 par Farmers & Mechanics Bank (Connecticut): $.01 par common common Cablemaxx Inc.: $.01 par common FFLC Bancorp, Inc. (Florida): $.01 par common Call-Net Enterprises Inc.: Class B; No par common Fidelity Bancorp Inc. (Illinois): $.01 par common Capital Savings Bancorp Inc. (Michigan): $.01 par Fidelity Federal Savings Bank of Florida: $1.00 par common common Cardinal Bancshares, Inc. (Kentucky): No par com- First Banking Company of Southeast Georgia: $1.00 mon par common Careline, Inc.: $.0001 par common First Bankshares Inc. (Missouri): $.01 par common Carson Pirie Scott & Co.: $.01 par common First Charter Bank, N.A. (California): $2.56 par com- CBT Corporation: No par common mon Celex Group, Inc.: $.01 par common First Financial Bankshares, Inc. (Texas): $10.00 par Cellstar Corporation: $.01 par common common CHC Helicopter Corporation: Class A, subordinate First Savings Bank of Moore County Inc., SSB: No voting shares par common Children's Broadcasting Corporation: $.01 par com- First State Bancorporation (New Mexico): No par mon common Clintrials Inc.: $.01 par common Flair Corporation: $.01 par common Club Car Inc.: $.01 par common Foamex International, Inc.: $.01 par common CMC Industries Inc.: $.01 par common Franklin Ophthalmic Instruments Co., Inc.: $.001 par Coastal Banc Savings Association (Texas): Series A; common No par noncumulative preferred Friedman's Inc.: Class A; $.01 par common Coflexip: American Depositary Receipts Frisco Bay Industries Ltd.: No par common Commerce Group, Inc., The: $.50 par common FTP Software Inc.: $.01 par common Communications Central Inc.: $.01 par common Fulcrum Technologies, Inc.: No par common Conso Products Company: No par common Consolidated Stainless Inc.: $.01 par common Gaming Corporation of America: $.02 par common Consumer Portfolio Services, Inc.: No par common Gateway 2000 Inc.: $.01 par common Credence Systems Corporation: $.001 par common Gibraltar Steel Corporation: $.01 par common Crescent Airways Corporation: $.01 par common; Globalink, Inc.: $.01 par common Warrants (expire 01-10-98) Golden Systems Inc.: No par common Crossmann Communities Inc.: No par common Granite Broadcasting Corporation: $.01 par cumulative convertible exchangeable preferred D&N Financial Corporation: Warrants (expire Grasso Corporation: $.01 par common 12-31-96) Great American Communications Company: Class A; Davel Communications Group Inc.: No par common No par common Deckers Outdoor Corporation: $.01 par common Greenwich Air Services Inc.: $.01 par common Delta Petroleum Corporation: $.01 par common Gryphon Holdings Inc.: $.01 par common Digidesign, Inc.: $.001 par common DM Management Company: $.01 par common Hallmark Capital Corporation: $1.00 par common Duracraft Corporation: No par common Harbor Federal Savings Bank (Florida): $1.00 par common Eateries, Inc.: $.002 par common Harvard Industries Inc.: Class B; $.01 par common; EB, Inc.: $2.00 par common $.01 par 14-LA% PIK exchangeable preferred Elephant & Castle Group, Inc.: No par common Harvey Comics Entertainment, Inc.: No par common Ellett Brothers, Inc.: $.01 par common Healthwise of America, Inc.: $.25 par common Encad, Inc.: No par common Heidemij N.V.: $.05 par common (NLG) Encon Systems, Inc.: $.01 par common Hi-Rise Recycling Systems, Inc.: $.01 par common Ensys Environmental Products Inc.: $.01 par common Holophane Corp.: $.01 par common Envirogen, Inc.: Warrants (expire 10-12-98) Human Genome Sciences Inc.: $.01 par common Enviropur Waste Refining & Technology Inc.: $.01 par common; Class B, Warrants (expire 12-31-94) ICO, Inc.: Depositary shares Evergreen Media Corporation: 6% convertible ex- Illinois Superconductor Corporation: $.001 par comchangeable preferred mon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 Federal Reserve Bulletin • March 1994 Innovative Gaming Corporation: $.01 par common; MK Gold Company: $.01 par common Warrants (expire 05-28-96) Monaco Finance, Inc.: Class A, $.01 par common; Insignia Financial Group, Inc.: Class A, $.01 par Class B, Warrants (expire 12-11-95) common Monterey Pasta Company: No par common Insilco Corporation: $.001 par common Mountasia Entertainment International Inc.: No par Insite Vision Inc.: $.01 par common common Integracare Inc.: $.001 par common MRI Management Associates, Inc.: $.001 par common Integrated Process Equipment Corporation: $.01 par Mutual Federal Savings Bank of Miamisburg: $1.00 common par common Intelligent Surgical Lasers, Inc.: Warrants A (expire 11-17-2000); Warrants B (expire 11-17-2000) N-Viro International Corporation: $.01 par common Interfilm, Inc.: $.01 par common National Dentex Corporation: $.01 par common Interlink Electronics: No par common Navarre Corporation: No par common International Fast Food Corporation: $.01 par com- NDC Automation, Inc.: $.01 par common mon Network Imaging Corporation: $.0001 par common; International Semi-Tech Microelectronics: Class A, $.0001 par preferred; Warrants (expire 05-07-97) sub-voting shares New World Power Corporation: $.01 par common Interpore International: No par common North Bancshares Inc. (Illinois): $.01 par common Itron, Inc.: No par common Iwerks Entertainment Inc.: $.001 par common Ocean Optique Distributors, Inc.: No par common Odetics, Inc.: Class A, $.10 par common; Class B, Jacor Communications Inc.: $.10 par common; War- $.10 par common rants (expire 01-14-2000) Old Second Bancorp Inc. (Illinois): No par common Jasmine Ltd.: $.001 par common Olympic Financial Ltd. (Minnesota): 8% cumulative Jetform Corporation: No par common convertible exchangeable preferred JPE, Inc.: No par common OM Group Inc.: $.01 par common Opinion Research Corporation: $.01 par common Kaman Corporation: Depositary Shares Oxford Resources Corporation: Class A, $.01 par Kentucky Enterprise Bancorp, Inc.: $.01 par common common Koala Corporation: $.10 par common Koo Koo Roo, Inc.: $.01 par common P.A.M. Transportation Services Inc.: $.01 par common Lakeview Savings Bank (New Jersey): $2.00 par com- Pacific Credit Capital Inc.: $.01 par common mon Parkervision, Inc.: $.01 par common Landair Services Inc.: $.01 par common Partnerre Holdings Ltd.: $1.00 par common Lodgenet Entertainment Corporation: $.01 par com- Patterson Energy Inc.: $.01 par common; Warrants mon (expire 11-02-95) London & Overseas Freighters Limited: American Penederm Inc.: No par common Depositary Receipts Penn-America Group, Inc.: $.01 par common Lone Star Casino Corporation: $.001 par common Perseptive Technologies II Corporation: Units (expire Louisville Gas and Electric Company: 5% preferred 12-31-95) stock Petrocorp Incorporated: $.01 par common Petstuff Inc.: $.01 par common M.G. Products, Inc.: No par common Pharmhouse Corporation: No par common Mace Security International Inc.: $.01 par common Pharmos Corporation: $.03 par common Macromedia, Inc.: $.001 par common Photonics Corporation: $.001 par common Main Street Community Bancorp, Inc.: $.01 par com- Physicians Insurance Company of Michigan: $1.00 par mon common Martek Biosciences Corporation: $.10 par common Piemonte Foods Inc.: No par common Masland Corporation: $.01 par common Pinpoint Retail Solutions, Inc.: No par common Merchants Bancorp, Inc. (Illinois): $1.00 par common Planar Systems, Inc.: No par common Mercury Interactive Corporation: $.002 par common PMC Commercial Trust: Shares of beneficial interest Mikohn Gaming Corporation: $.10 par common Polio Tropical, Inc.: $.01 par common Millicom International Cellular S.A.; $2.00 par com- Positron Corporation: $.01 par common; Warrants mon (expire 12-02-98) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 245 Premiere Page, Inc.: $.01 par common Tee-Comm Electronics Inc.: No par common Proxim, Inc.: $.001 par common Temtex Industries, Inc.: $.20 par common PSB Holdings Corporation: $.01 par common TFC Enterprises, Inc.: $.01 par common Purus, Inc.: $.001 par common Tower Air Inc.: $.01 par common Transnational Re Corporation: Class A, $.01 par common Quaker City Bancorp, Inc. (California): $.01 par com- Triad Guaranty Inc.: $.01 par common mon Triquint Semiconductor, Inc.: No par common Quaker Fabric Corporation: $.01 par common Queens County Bancorp, Inc. (New York): $.01 par U.S. Wireless Data, Inc.: Class A, $.01 par common common Ultimate Electronics Inc.: $.01 par common Quickturn Design Systems, Inc.: $.001 par common Union Switch & Signal Inc.: $.01 par common Uniphase Corporation: $.001 par common Racotek, Inc.: $.01 par common United Video Satellite Group, Inc.: Class A, $.01 par Railtex, Inc.: $.10 par common common Republic Security Financial Corporation (Florida): Universal Forest Products Inc.: No par common Series A, 7.5% cumulative convertible preferred Urban Outfitters Inc.: $.0001 par common RGB Computer & Video, Inc.: No par common Rimage Corporation: Warrants (expire 07-21-95) Veritas Software Corporation: No par common Roberds Inc.: No par common Viagene, Inc.: $.001 par common Robotic Vision Systems, Inc.: $.01 par common VISC, Incorporated: $.01 par common Royce OTC Micro-Cap Fund, Inc.: $.001 par common Wang Laboratories, Inc.: $.01 par common; Warrants Safe skin Corporation: $.01 par common (expire 07-02-2000) Sangstat Medical Corporation: No par common Welbilt Corporation: $.01 par common Schnitzer Steel Industries Inc.: Class A, $1.00 par West Marine, Inc.: $.001 par comon common Westerfed Financial Corporation: $.01 par common Search Capital Group, Inc.: $.01 par common White River Corporation: $.01 par common Security Capital Corporation (Wisconsin): $1.00 par Wickes Lumber Company: $.01 par common common WRT Energy Corporation: $.01 par common; 9% SEDA Specialty Packaging Corporation: No par com- convertible preferred mon WVS Financial Corporation: $.01 par common Shaw Group Inc., The: $.01 par common Skybox International Inc.: $.01 par common Zoltek Companies, Inc.: $.01 par common Sonoco Products Company: Series A, cumulative con- Zytec Corp.: No par common vertible preferred Soricon Corporation: $.01 par common Southwest Bancorp, Inc. (Oklahoma): $1.00 par com- Additions to the List of Foreign Margin Stocks mon Specialty Equipment Companies Inc.: $.01 par com- Cheung Kong Holdings Ltd: HK$.50 par ordinary mon shares Spectral Diagnostics, Inc.: No par common China Light & Power Co., Ltd.: HK$5.00 par ordinary Spreckels Industries, Inc.: Class A, $.01 par common shares Stacey's Buffet, Inc.: Warrants (expire 11-12-98) State Bancshares Inc. (Pennsylvania): $1.00 par com- Daifuku Company: ¥50 par ordinary shares mon Dairy Farm International Holdings Ltd.: HK$.05 par Stimsonite Corporation: $.01 par common ordinary shares Submicron Systems Corporation: $.0001 par common Summa Industries, Inc.: No par common Guoco Group Ltd.: HK$.50 par ordinary shares Sunbelt Companies, Inc., The: $.01 par common Sutton Resources, Ltd.: No par common Hang Lung Development Company: HK$1.00 par Sylvan Learning Systems Inc: $.01 par common ordinary shares Hang Seng Bank Ltd.: HK$5.00 par ordinary shares TAT Technologies Ltd: Ordinary shares, NIS (0.15 Henderson Land Development Co., Ltd.: HK$2.00 par common); Class A, Warrants (expire 03-31-94) par ordinary shares Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 Federal Reserve Bulletin • March 1994 Hong Kong Electric Holdings Ltd.: HK$1.00 par Insurance Corporation Improvement Act of 1991 ordinary shares (12 U.S.C. 4402(1)(B) and 4402(9)). Hong Kong Land Holdings Ltd.: HK$. 10 par ordinary (b) Purpose and scope. The purpose of the Act and shares this part is to enhance efficiency and reduce systemic Hong Kong Telecommunications Ltd.: HK$.50 par risk in the financial markets. This part expands the ordinary shares Act's definition of "financial institution" to allow HSBC Holdings PLC: HK$.50 par ordinary shares more financial market participants to avail themselves Hutchinson Whampoa Ltd.: HK$.25 par ordinary of the netting provisions set forth in sections 401-407 shares of the Act (12 U.S.C. 4401-4407). This part does not Hysan Development Co., Ltd.: HK$5.00 par ordinary affect the status of those financial institutions specifishares cally defined in the Act. Jardine Stragegic Holdings Ltd.: HK$.05 par ordinary Section 231.2—Definitions. shares As used in this part, unless the context requires Sun Hung Kai Properties Ltd.: HK$.50 par ordinary otherwise: shares (a) Act means the Federal Deposit Insurance Corpo- Swire Pacific Ltd.: A shares, par HK$.60 ration Improvement Act of 1991 (Pub. L. 102-242, 105 Stat. 2236), as amended. Wharf Holdings Ltd.: HK$1.00 par ordinary shares (b) Affiliate, with respect to a person, means any other person that controls, is controlled by, or is under common control with the person. FINAL RULE—AMENDMENT TO REGULATION EE (c) Financial contract means a qualified financial contract as defined in section 11(e)(8)(D) of the Federal The Board of Governors is amending 12 C.F.R. Part Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)), as 231, its Regulation EE (Netting Eligibility for Finan- amended, except that a forward contract includes a cial Institutions), to include certain entities under the contract with a maturity date two days or less after the definition of "financial institution" in section 402 of date the contract is entered into (i.e., a "spot" conthe Federal Deposit Insurance Corporation Improve- tract). ment Act of 1991 so that they will be covered by the (d) Financial market means a market for a financial Act's netting provisions. The Act authorizes the Board contract. to expand the definition of "financial institution" to (e) Gross mark-to-market positions in one or more the extent consistent with the purposes of enhancing financial contracts means the sum of the absolute efficiency and reducing systemic risk in the financial values of positions in those contracts, adjusted to markets. reflect the market values of those positions in accor- Effective March 7, 1994, 12 C.F.R. Part 231 is dance with the methods used by the parties to each amended as follows: contract to value the contract. (f) Person means any legal entity, foreign or domestic, Part 231—Netting Eligibility for Financial including a corporation, unincorporated company, Institutions partnership, government unit or instrumentality, trust, natural person, or any other entity or organization. Section 231.1—Authority, purpose, and scope. Section 231.2—Definitions. Section 231.3—Qualification as a financial institution. Section 231.3—Qualification as a financial institution. (a) A person qualifies as a financial institution for Authority: 12 U.S.C. 4402(1)(B) and 4402(9). purposes of sections 401-407 of the Act if it represents that it will engage in financial contracts as a counter- Section 231.1—Authority, purpose, and scope. party on both sides of one or more financial markets and either— (1) Had one or more financial contracts of a total (a) Authority. This part (Regulation EE; 12 C.F.R. gross dollar value of at least $1 billion in notional Part 231) is issued by the Board of Governors of the principal amount outstanding on any day during the Federal Reserve System under the authority of sec- previous 15-month period with counterparties that tions 402(1)(B) and 402(9) of the Federal Deposit are not its affiliates; or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 247 (2) Had total gross mark-to-market positions of at Notice of this proposal, affording interested persons least $100 million (aggregated across counterparties) an opportunity to submit comments, has been pubin one or more financial contracts on any day during lished (58 Federal Register 61,691 (1993)). The time for the previous 15- month period with counterparties filing comments has expired, and the Board has conthat are not its affiliates. sidered the application and all comments received in (b) If a person qualifies as a financial institution under light of the factors set forth in section 4(c)(8) of the paragraph (a), that person will be considered a finan- BHC Act. cial institution for the purposes of any contract entered The Board has determined that the operation of a into during the period it qualifies, even if the person savings association by a bank holding company is subsequently fails to qualify. closely related to banking for purposes of section (c) If a person qualifies as a financial institution under 4(c)(8) of the BHC Act.3 In making this determination, paragraph (a) on March 7, 1994, that person will the Board requires that savings associations acquired be considered a financial institution for the purposes by bank holding companies conform their direct and of any outstanding contract entered into prior to indirect activities to those permissible for bank holding March 7, 1994. companies under section 4(c)(8) of the BHC Act and Regulation Y. Mercantile has committed to conform all activities of United Postal Savings to these require- ORDERS ISSUED UNDER BANK HOLDING ments.4 COMPANY ACT Mercantile, with consolidated assets of approximately $10.2 billion, controls subsidiary banks in Orders Issued Under Section 4 of the Bank Missouri, Illinois, and Kansas.5 Mercantile is the Holding Company Act second largest commercial bank in Missouri, controlling deposits of $7.1 billion, representing approxi- Mercantile Bancorporation Inc. mately 13.1 percent of total deposits in commercial St. Louis, Missouri banking organizations in the state. United Postal Savings is the eighth largest thrift organization in the state, Order Approving Application to Acquire a Savings controlling deposits of $1.1 billion, representing ap- Association proximately 8.5 percent of total deposits of thrift institutions in the state. Upon consummation of this Mercantile Bancorporation Inc., St. Louis, Missouri transaction, Mercantile would remain the second larg- ("Mercantile"), a bank holding company within the est depository institution6 in Missouri, controlling demeaning of the Bank Holding Company Act ("BHC posits of approximately $8.2 billion, representing ap- Act"), has applied for the Board's approval under proximately 12.2 percent of the deposits in commercial section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) banks in the state. and section 225.23 of the Board's Regulation Y (12 C.F.R. 225.23), to acquire United Postal Bancorp, Competitive Considerations Inc., St. Louis, Missouri ("United Postal"), and thereby indirectly acquire United Postal's thrift subsid- Under section 4(c)(8) of the BHC Act, the Board must iary, United Postal Savings Association, St. Louis, consider the competitive aspects of each proposal. In Missouri, a federally chartered savings bank ("United this regard, Mercantile and United Postal Savings Postal Savings"),1 and the other wholly owned subsid- compete directly in the Missouri banking markets of iaries of United Postal Savings.2 Scotland County, Chariton County, and St. Louis. Upon consummation of the proposal, Mercantile 1. Mercantile will acquire United Postal by merger with Mercan- be acquired as wholly owned subsidiaries of Mercantile's lead bank, tile's wholly owned subsidiary, Ameribanc, Inc., St. Joseph, Mis- Mercantile Bank of St. Louis, N.A., St. Louis, Missouri. souri, and operate United Postal Savings as a separate subsidiary. 3. See 12 C.F.R. 225.25(b)(9). 2. United Postal Savings operates three wholly owned subsidiaries: 4. United Postal Savings engages in insurance agency activities and Moneymatic Corporation (a remote service unit providing banking real estate activities that are not permissible for bank holding compaservices to customers of United Postal Savings at two supermarket nies under the BHC Act. Mercantile has committed to terminate all chains in the St. Louis area); United Postal Financial Services, Inc. impermissible insurance and real estate activities within two years of ("United Postal Financial") (engaged in the sale as agent of annuities consummation of the proposal. During this two-year period, Mercanand credit-related insurance products); and Metropolitan Savings tile also has committed to limit United Postal Savings's insurance Service Corporation ("Metropolitan Savings") (engaged as a limited activities to renewals of existing policies and not to begin or enter into partner in mortgage banking activities through offices located at a real any new real estate activities or projects. estate brokerage company). Upon consummation of the proposal 5. State asset deposit and market data are as of June 30, 1992. United Postal Savings would continue to operate Moneymatic Corpo- 6. In this context, depository institutions include commercial banks, ration while United Postal Financial and Metropolitan Savings would savings banks, and savings associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 Federal Reserve Bulletin • March 1994 would remain the largest depository institution in the In the St. Louis banking market,14 Mercantile would Scotland County7 and Chariton County8 banking remain the second largest depository institution, conmarkets.9 Both of these markets would be considered trolling approximately 18 percent of market deposits, highly concentrated as measured by the Herfindahl- and the HHI would increase 70 points to 1110. Eighty- Hirschman Index ("HHI")10 and Mercantile would six competitors would remain in the market. control more than 35 percent of the total deposits in Based on all the facts of record, including the depository institutions in each market ("market proposed divestitures, the changes in market concendeposits").11 In order to mitigate any potential ad- tration as measured by the HHI, and the number of verse competitive effect that could result from con- remaining competitors, the Board concludes that consummation of this proposal, Mercantile has commit- summation of this proposal would not have a signifited to divest12 all of United Postal Savings's offices13 cantly adverse effect on competition or concentration in the Chariton County and Scotland County banking of banking resources in the Scotland County, Chariton markets. County and St. Louis banking markets, or any other relevant banking markets. Other Considerations 7. The Scotland County banking market is approximated by Scotland County, Missouri. 8. The Chariton County banking market is approximated by Chari- The financial and managerial resources of Mercantile ton County, Missouri. and United Postal and their subsidiaries are consistent 9. Market share data before consummation are based on calculations in which the deposits of thrift institutions are included at with approval. In addition, the record does not indi- 50 percent. The Board previously has indicated that thrift institutions cate that consummation of this proposal is likely to have become, or have the potential to become, significant competitors result in any significantly adverse effects, such as of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City Corporation, 70 Federal Reserve Bulletin undue concentration of resources, decreased or unfair 743 (1984). Because the deposits of United Postal Savings would be competition, conflicts of interests, or unsound banking controlled by a commercial banking organization upon consummation practices that are not likely to be outweighed by the of this proposal, these deposits are included at 100 percent in the calculation of Mercantile's post-consummation share of state depos- public benefits of this proposal. Accordingly, the its. See Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); Board has determined that the balance of public inter- First Banks, Inc., 76 Federal Reserve Bulletin 669, 670 n.9 (1990). est factors it must consider under section 4(c)(8) of the 10. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the BHC Act is favorable and consistent with approval of post-merger HHI is over 1800 is considered to be highly concentrated. the application. In such highly concentrated markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points. Based on the foregoing and all the facts of record, The Justice Department has informed the Board that a bank merger or the Board has determined that the application should acquisition generally will not be challenged (in the absence of other be, and hereby is, approved. The Board's approval is factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 conditioned upon Mercantile obtaining all required points. The Justice Department has stated that the higher than normal regulatory approvals. The Board's approval of this HHI thresholds for screening bank mergers for anticompetitive effects proposal also is specifically conditioned on compliance implicitly recognize the competitive effect of limited-purpose lenders and other non-depository financial entities. by Mercantile with the commitments made in connec- 11. In the Scotland County banking market, the HHI would increase tion with its application, as supplemented, including 107 points to 6966 and Mercantile would control approximately 82 percent of market deposits upon consummation. In the Chariton all the terms of its divestiture commitments. County banking market, consummation of the proposal would in- The Board's determination also is subject to all the crease the HHI 81 points to 2352, and Mercantile would control conditions set forth in Regulation Y, including those in approximately 37 percent of market deposits. 12. Mercantile has committed to submit to the Board, prior to sections 225.4(d) and 225.23(b)(3), and to the Board's consummation of its acquisition of United Postal, a binding contract authority to require modification or termination of the acceptable to the Board for the sale of these offices. Mercantile also activities of a bank holding company or any of its has committed that if it does not execute such a contract before consummation, it will transfer these offices to an independent trustee subsidiaries as the Board finds necessary to assure upon consummation, who will be authorized to supervise the opera- compliance with, and to prevent evasion of, the protions of these offices and instructed to promptly find a suitable buyer. Mercantile also has committed to submit to the Board, prior to consummation of the acquisition, an executed trust agreement acceptable to the Board stating the terms of this divestiture. The Board's action on the application is expressly conditioned upon compliance 14. The St. Louis banking market is approximated by the City of with these commitments. St. Louis; St. Louis, Jefferson, and St. Charles Counties, Missouri; 13. United Postal Savings maintains two agency offices in Chariton St. Clair County, Illinois, excluding Lenzburg and Marissa townships; County and one agency office in Scotland County for the purpose of portions of Franklin County, Missouri (Boles and Calvey townships); receiving deposits. Agency offices are limited-purpose offices specif- Madison County, Illinois (Godfrey, Foster, Alton, Wood River, Fort ically authorized for savings associations under Missouri law. See Mo. Russell, Chouteau, Edwardsville, Venice, Granite City, Nameoki, Code Regs. Title 4, § 260-4.030. These offices account for approxi- Collinsville, Jarvis, Pin Oak, and Hamel townships); and Monroe mately $2.6 million in total deposits in these banking markets that will County, Illinois (Columbia, Moredock, New Harmony, Waterloo, be divested as part of Mercantile's commitments. Harrisonville, and Bluff townships). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 249 visions and purposes of the BHC Act and the Board's tances and certificates of deposit ("bank-eligible regulations and orders issued thereunder. The commit- securities"), as permitted by section 225.25(b)(16) of ments and conditions relied on by the Board in reach- Regulation Y (12 C.F.R. 225.25(b)(16)); ing this decision are deemed to be conditions imposed (2) Underwriting and dealing in, to a limited extent: in writing by the Board in connection with its findings (i) All other types of debt securities, including and decision, and as such, may be enforced in pro- without limitation, municipal revenue bonds, ceedings under applicable law. mortgage-related securities, consumer-receivable- This transaction shall not be consummated later related securities, commercial paper, sovereign than three months after the effective date of this order, debt securities, corporate debt securities, debt unless such period is extended for good cause by the securities convertible into equity securities, and Board or by the Federal Reserve Bank of St. Louis, securities issued by a trust or other vehicle seacting pursuant to delegated authority. cured by or representing interests in debt obliga- By order of the Board of Governors, effective tions; and January 18, 1994. (ii) Equity securities, including without limitation, common stock, preferred stock, American Depos- Voting for this action: Chairman Greenspan, Vice Chari- itary Receipts, options, limited partnership units, man Mullins, and Governors Angell, Kelley, Lindsey, and warrants, and securities issued by closed-end Phillips. Absent and not voting: Governor La Ware. investment companies, but no securities issued by open-end investment companies ("bank-ineligible JENNIFER J. JOHNSON securities"); Associate Secretary of the Board (3) Acting as agent for issuers in the private placement of all types of debt and equity securities, Saban, S.A., including providing related advisory services; Marina Bay, Gibraltar (4) Acting as broker or agent with respect to interest rate or currency swaps and certain risk-management RNYC Holdings Limited, products, such as caps, floors and collars, as well as Marina Bay, Gibraltar options on swaps, caps, floors and collars ("swap derivative products"); and Republic New York Corporation (5) Acting as an advisor to institutional customers New York, New York regarding financial strategies involving interest rate and currency swaps and swap derivative products.1 Order Approving an Application to Engage De Novo in Various Securities-Related Activities, Including Underwriting and Dealing, Private Placement, and 1. Company also proposes to broker and arrange interest rate and Interest Rate and Currency Swap Activities currency swap transactions for affiliates. The Board previously has determined that bank holding companies and their nonbank subsidiaries may provide such swap-related services for affiliates pursuant to Saban, S.A., Marina Bay, Gibraltar ("Saban"), a bank section 4(c)(1)(C) of the BHC Act (12 U.S.C. § 1843(c)(1)(C)). See C&S/Sovran Corporation, 76 Federal Reserve Bulletin 857, 858 n.12 holding company within the meaning of the Bank (1990); The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768, 768 Holding Company Act ("BHC Act"), and its subsid- n.3 (1990). In addition, Company proposes to provide securities and iaries, RNYC Holdings Limited, Marina Bay, commodities execution, clearing, and custodial services for affiliates, which also would be permissible under section 4(c)(1)(C) of the BHC Gibraltar ("RNYC Holdings"), and Republic New Act. York Corporation, New York, New York ("RNYC") Company also proposes to borrow securities from customer custo- (collectively, "Applicant"), have applied under sec- dial accounts at trust departments of bank affiliates ("bonds borrowed transactions")- The Board has previously permitted bank holding tion 4(c)(8) of the BHC Act, and section 225.23 of the company subsidiaries to engage, as part of their permissible securities Board's Regulation Y (12 C.F.R. 225.23), to engage brokerage and securities credit activities, in lending and borrowing securities that an affiliated bank holds on behalf of customers. See The de novo, domestically and internationally, through Ap- Chase Manhattan Corporation, 69 Federal Reserve Bulletin 725 plicant's wholly owned subsidiary, Republic New York (1983); Canadian Imperial Bank of Commerce, 74 Federal Reserve Securities Corporation, New York, New York ("Com- Bulletin 571 (1988); see also Saban, S.A., 78 Federal Reserve Bulletin 955 (1992). Company would conduct all bonds borrowed transactions pany"), in the following securities-related activities: in accordance with the Board's policy statement on securities lending (1) Underwriting and dealing in obligations of the activities (I F.R.R.S. 3-1579.5), and Company would not engage in bonds borrowed transactions with Applicant or its nonbank subsid- United States, general obligations of states and their iaries. Moreover, Company would not borrow securities from any political subdivisions, and other obligations that customer custodial account over which an affiliate exercises trustee state member banks of the Federal Reserve System powers. Applicant has committed that no bank or thrift affiliate of Company will guarantee or indemnify its customers against losses may be authorized to underwrite and deal in under arising from Company's nonperformance in connection with any 12 U.S.C. §§ 4 and 335, including banker's accep- bonds borrowed transactions, including Company's failure to return Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 Federal Reserve Bulletin • March 1994 Notice of the application, affording interested per- Underwriting and Dealing in Bank-Ineligible sons an opportunity to submit comments on the pro- Securities posal, has been published (58 Federal Register 39,028 (1993)). The time for filing comments has expired, and The Board has determined that, subject to the prudenthe Board has considered the application and all tial framework of limitations established in previous comments received in light of the public interest decisions to address the potential for conflicts of factors set forth in section 4(c)(8) of the BHC Act. interests, unsound banking practices, or other adverse Saban is organized under the laws of Panama, and effects, the proposed underwriting and dealing activimaintains its principal place of business in Gibraltar. ties involving bank-ineligible securities are so closely RNYC Holdings is a wholly owned intermediate hold- related to banking as to be proper incidents thereto ing company subsidiary of Saban that is organized within the meaning of section 4(c)(8) of the BHC Act.5 under the laws of Gibraltar. RNYC, with $38 billion in The Board also has determined that the conduct of total consolidated assets, is the seventh largest com- these securities underwriting and dealing activities is mercial banking organization in New York.2 RNYC consistent with section 20 of the Glass-Steagall Act operates subsidiary banks in New York and Califor- (12 U.S.C. § 377), provided that the company ennia,3 and engages directly and through subsidiaries in a gaged in the underwriting and dealing activities derives broad range of permissible nonbanking activities. no more than 10 percent of its total gross revenue from Company is, and will continue to be, a broker-dealer underwriting and dealing in bank-ineligible securities registered with the Securities and Exchange Commis- over any two-year period.6 Applicant has committed sion ("SEC"), and a member of the National Associa- that Company will conduct its underwriting and dealtion of Securities Dealers, Inc. ("NASD"). Accord- ing activities with respect to bank-ineligible securities ingly, Company is subject to the recordkeeping, subject to the 10 percent revenue test, and the prudenreporting, fiduciary standards, and other requirements of the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.), the SEC, and the NASD. Company is currently engaged in a variety of securities-related Prior to consummation of the proposal, Applicant intends to transactivities.4 fer to Company all the existing activities and business of Republic Clearing Corporation, New York, New York, a futures commission merchant ("FCM") registered with the Commodity Futures Trading Commission ("CFTC"), and thereby offer FCM execution, clearance, borrowed securities. Company also would engage in repurchase and and advisory services through Company. Company intends to register reverse repurchase transactions involving United States Treasury as an FCM with the CFTC, and become a member of the National securities with indirect foreign subsidiaries of Company's bank affil- Futures Association ("NFA"). Thereafter, Company would be subiates. The Board has previously determined that such repurchase and ject to the recordkeeping, reporting, fiduciary standards, and other reverse repurchase transactions, subject to certain conditions, are requirements of the Commodity Exchange Act (7 U.S.C. § 1 et seq.), consistent with the conditions and limitations that the Board has the CFTC, and the NFA. Applicant has committed that Company will imposed on the conduct of securities underwriting and dealing activ- not engage in FCM clearing-only activities (i.e., clearing without ities by bank holding companies. See Letter dated July 26, 1989, from executing trades) without prior notice to the Federal Reserve System. Jennifer J. Johnson, Associate Secretary of the Board, to James J. Conduct of these FCM activities by Company is subject to all the Baechle, General Counsel of Bankers Trust New York Corporation; terms and conditions imposed on the conduct of these activities in the Letter dated June 19, 1989, from William W. Wiles, Secretary of the Board's orders permitting Applicant to conduct these activities. See Board, to Rachel F. Robbins, General Counsel of J.P. Morgan Saban, S.A., 73 Federal Reserve Bulletin 224 (1987); Republic New Securities, Inc. As required in those previous approvals, Applicant York Corporation, 63 Federal Reserve Bulletin 951 (1977). has committed that Company will not engage in such repurchase and 5. See Canadian Imperial Bank of Commerce, 76 Federal Reserve reverse repurchase transactions to fund Company or Company's Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., positions. Moreover, Applicant has committed that, when engaging in 75 Federal Reserve Bulletin 192 (1989), ajfd sub nom. Securities the proposed repurchase and reverse repurchase transactions, Com- Industries Ass'n v. Board of Governors of the Federal Reserve pany will provide its bank affiliates with written guarantees indemni- System, 900 F.2d 360 (D.C. Cir. 1990); Citicorp, et al., 73 Federal fying the bank affiliates against any losses that might arise from Reserve Bulletin 473 (1987), affd sub nom. Securities Industry Ass'n Company's nonperformance. v. Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d 2. Asset and ranking data are as of September 30, 1993. Cir.), cert, denied, 486 U.S. 1059 (1988) (collectively, "Section 20 3. Those subsidiary banks are Republic National Bank of New Orders"). Applicant has committed to conduct the proposed under- York, a national banking association; Republic Bank for Savings writing and dealing activities using the same methods and procedures, (formerly The Manhattan Savings Bank), a state-chartered savings and subject to the same prudential limitations established by the bank the deposits of which are insured by the Federal Deposit Board in the Section 20 Orders. Insurance Corporation; and Republic Bank California, N.A. (formerly 6. See id. Compliance with the 10 percent revenue limitation shall be SafraBank (California)), a national banking association. calculated in accordance with the method stated in the Section 20 4. These activities include: Orders, as modified by the Order Approving Modifications to the (1) Providing securities brokerage and investment advisory services Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989), the Order to customers, both separately and on a combined basis; Approving Modifications to the Section 20 Orders, 79 Federal Reserve (2) Purchasing and selling all types of securities on the order of Bulletin 226 (1993), and the Supplement to Order Approving Modificustomers as a "riskless principal"; and cations to Section 20 Orders, 79 Federal Reserve Bulletin 360 (1993) (3) Engaging in securities credit activities pursuant to the Board's (collectively, "Modification Orders"). In this regard, Applicant has Regulation T (12 C.F.R. 220), including acting as a "conduit" or elected to use the Board's alternative indexed revenue test to measure "intermediary" in securities borrowing and lending. See Saban, compliance with the 10 percent limitation on bank-ineligible securities 5.A., et al., 78 Federal Reserve Bulletin 955 (1992). activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 251 tial limitations established by the Board in previous will not privately place registered securities, and will orders.7 only place securities with customers who qualify as accredited investors. The Board previously has deter- Private Placement Activities mined by order that, subject to prudential limitations that address the potential for conflicts of interests, Private placement involves the placement of new unsound banking practices, and other adverse effects, issues of securities with a limited number of sophisti- the proposed private placement activities are so cated purchasers in a nonpublic offering. A financial closely related to banking as to be a proper incident intermediary in a private placement transaction acts thereto within the meaning of section 4(c)(8) of the solely as an agent of the issuer in soliciting purchasers, BHC Act.8 The Board also previously has determined and does not purchase the securities and attempt to that acting as agent in the private placement of securesell them. Securities that are privately placed are not rities does not constitute underwriting and dealing in subject to the registration requirements of the Securi- securities for purposes of section 20 of the Glassties Act of 1933, and are offered only to financially Steagall Act (12 U.S.C. § 377), and that revenue desophisticated institutions and individuals and not to rived from such activities is not subject to the the public. Applicant has committed that Company 10 percent revenue limitation on bank-ineligible securities underwriting and dealing.9 Applicant has committed that Company will conduct its private place- 7. As an incident to the proposed underwriting and dealing activi- ment activities using the same methods and ties, Company also proposes to engage in certain options, futures, and procedures, and subject to the same prudential limitaoptions on futures transactions in bank-eligible and bank-ineligible securities for hedging purposes in accordance with the Board's policy tions established by the Board in Bankers Trust and statement on derivative transactions, 12 C.F.R. 225.142. The Board J.P. Morgan, including the comprehensive framework has previously determined that section 20 subsidiaries may provide of restrictions designed to avoid potential conflicts of services that are necessary incidents to approved underwriting and dealing activities, provided that any activities conducted as a neces- interests, unsound banking practices, or other adverse sary incident to bank-ineligible securities activities must be treated as effects imposed by the Board in connection with part of the bank-ineligible securities activities unless Company has underwriting and dealing in securities.10 received specific approval under section 4(c)(8) of the BHC Act to conduct the activities independently. See J.P. Morgan & Co. Incorporated, et al., 75 Federal Reserve Bulletin 192, 213 n.59 (1989). Until such approval is obtained, any revenues from the incidental activities Swap and Swap Advisory Activities must be counted as ineligible revenues subject to the 10 percent revenue limitations set forth in the Section 20 Orders, as modified by Applicant proposes to act as a broker or agent with the Modification Orders. In addition, Company proposes to act as principal in the resale of respect to transactions in interest rate and currency bank-ineligible securities pursuant to Rule 144A of the Securities and swaps, caps, floors, collars, and swap derivative prod- Exchange Commission (17 C.F.R. 230.144A). All income derived ucts, and to act as an advisor to institutional customers from such Rule 144A transactions shall be treated as ineligible revenues for purposes of the 10 percent limitation. See Bankers Trust regarding financial strategies involving such financial New York Corporation, 75 Federal Reserve Bulletin 829, 831 n.17 instruments. The Board has previously determined, by (1989). order, that these proposed activities are closely related Company also proposes to act as a dealer-manager in connection with cash tender and exchange offer transactions. See Chemical to banking and permissible for bank holding compa- Banking Corporation, 80 Federal Reserve Bulletin 49, 50 n.5 (1994). nies within the meaning of section 4(c)(8) of the BHC Dealer-managers generally act as agent for tender or exchange offerors in arranging or facilitating mergers, acquisitions, and other corporate transactions. All-cash tender offers do not, of themselves, involve the issuance, public sale, or distribution of securities. Accordingly, all revenues derived from Company acting as a dealer-manager in con- 8. See J.P. Morgan & Company Incorporated, 76 Federal Reserve nection with such tender offers may be treated by Company as eligible Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corporevenues for purposes of determining compliance with the Board's ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). 10 percent limitation on bank-ineligible securities activities. 9. Id. However, exchange offers may entail the public sale or distribution 10. The prudential limitations detailed more fully in Bankers Trust of securities where the consideration to be paid for the securities to be and J.P. Morgan require that: Company will not place securities of acquired comprises, either in whole or in part, securities of the investment companies which are sponsored or advised by Applicant purchaser. See Piper v. Chris-Craft Industries, Inc., 430 U.S. 1, 22 or its subsidiaries; Company will make no general solicitation or (1976); Federal Reserve System (In Re Bankers Trust and Louisiana general advertising for securities it places and such securities will not Land Company), SEC No-Action Letter (May 18, 1984); 5 Loss & be purchased by the general public; Company will not purchase or Seligman, Securities Regulation 2129 (1990). Accordingly, dealer- repurchase for its own account the securities being placed or invenmanager revenues derived from Company engaging in a securities tory unsold portions of such securities; Company will maintain underwriting, or revenues tied to a distribution of securities, must be specific records of its private placement transactions, identifying treated as ineligible revenue for purposes of determining compliance specifically those where credit is provided by an affiliate, so that with the Board's 10 percent limitation on bank-ineligible securities examiners will be able to readily identify and trace all components of activities. Applicant has committed that Company will abide by all the the transactions; Company will not place with any bank or thrift section 20 firewalls when acting as a dealer-manager in connection subsidiary of Applicant ineligible securities that are being placed by with exchange offers (including partial cash tender/partial exchange Company; and Company will not act as a private placement agent for offers), or when engaging in dealer-manager activities performed in any portion of an issue while concurrently acting as a dealer with connection with any underwriting or dealing activities. respect to another portion of the same issue. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 Federal Reserve Bulletin • March 1994 Act.11 Applicant will not act as a principal or originator has determined that Company has in place the manawith respect to these instruments, but will act solely as gerial and operational infrastructure and other policies agent or broker. Applicant proposes to engage in these and procedures necessary to comply with the requireactivities in accordance with all the provisions and ments of the Section 20 Orders and this order. Accordconditions set forth in the Board's prior orders relating ingly, the Board concludes that financial and manageto the proposed swap and swap advisory activities.12 rial considerations are consistent with approval of this application. Financial Factors, Managerial Resources, and Other In order to approve this proposal, the Board also Considerations must determine that the performance of the proposed activities by Company can reasonably be expected to The Board has reviewed the capitalization of Appli- produce public benefits that would outweigh possible cant and Company in accordance with the standards adverse effects under the proper incident to banking set forth in the Section 20 Orders, and finds the standard of section 4(c)(8) of the BHC Act. Under the capitalization of each to be consistent with approval. framework and conditions established in this and prior With respect to the capitalization of Company, this decisions, consummation of this proposal is not likely determination is based upon all the facts of record, to result in any significant adverse effects, such as including Applicant's projections of the volume of undue concentration of resources, decreased or unfair Company's proposed underwriting and dealing activi- competition, conflicts of interests, or unsound banking ties in bank-ineligible securities. practices. Moreover, the Board expects that the The Federal Reserve Bank of New York has re- de novo entry of Applicant into the market for the viewed the operational and managerial infrastructure proposed services in the United States would provide of Company, including its computer, audit, and ac- added convenience to Applicant's customers, and counting systems, and internal risk management pro- would increase the level of competition among existing cedures and controls. The Reserve Bank has deter- providers of these services. Accordingly, the Board mined that Company has established an adequate has determined that the performance of the proposed operational and managerial infrastructure for under- activities by Applicant could reasonably be expected writing and dealing in all types of debt and equity to produce public benefits that would outweigh possisecurities to ensure compliance with the requirements ble adverse effects under the proper incident to bankof the Section 20 Orders. On the basis of the Reserve ing standard of section 4(c)(8) of the BHC Act. Bank's review and all the facts of record, the Board On the basis of the foregoing and all the facts of record, including the commitments furnished by Applicant, the Board has determined that the application 11. The Sanwa Bank, Limited, 77 Federal Reserve Bulletin 64 should be, and hereby is, approved, subject to all the (1991); C&SlSovran Corporation, 76 Federal Reserve Bulletin 857 terms and conditions of this order and the orders cited (1990); The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768 herein, including the Section 20 Orders, as modified by (1990); The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582 (1989). the Modification Orders. The Board's approval of this 12. In order to minimize any possible conflicts of interest between proposal extends only to activities conducted within Company's role as agent or broker in swaps and related transactions the limitations of those orders and this order, including and its role as advisor to potential counterparties, Applicant has committed that Company will disclose to each customer the fact that the Board's reservation of authority to establish addi- Company may have an interest as a counterparty agent or broker in tional limitations to ensure that Company's activities the course of action ultimately taken by the customer. Also, in any case in which an affiliate of Company has an interest in a specific are consistent with safety and soundness, conflict of transaction as a principal or intermediary, Company will advise its interest, and other relevant considerations under the customer of that fact before recommending participation in that BHC Act. Underwriting and dealing in any manner transaction. In any transaction in which Company arranges a swaps transaction between an affiliate and a third party, Company will other than as approved in the Section 20 Orders is not inform the third party that it is acting on behalf of the affiliate. In within the scope of the Board's approval and is not addition, Company's advisory services will be offered only to sophisticated customers who would be unlikely to place undue reliance on authorized for Company. investment advice received and would be better able to detect The Board's determination is also subject to all the investment advice motivated by self-interest. Moreover, Company terms and conditions set forth in Regulation Y, includwill not make available to Applicant or any of its subsidiaries confidential information received from Company's clients except with ing those in sections 225.4(d) and 225.23(b) of Regulathe consent of the client, and disclosure will always be made to each tion Y, and to the Board's authority to require modipotential client of Company that Company is an affiliate of Applicant. Advice rendered by Company on an explicit fee basis will be rendered fication or termination of the activities of a bank without regard to correspondent balances maintained by the customer holding company or any of its subsidiaries as the of Company at Applicant or any depository institution subsidiary of Board finds necessary to assure compliance with, and Applicant. Finally, Company's financial advisory activities shall not encompass the performance of routine tasks or operations for a to prevent evasion of, the provisions of the BHC Act customer on a daily or continuous basis. and the Board's regulations and orders issued there- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 253 under. The Board's decision is specifically conditioned time for filing comments has expired, and the Board on compliance with all the commitments made in has considered the applications and all comments connection with this application, including the com- received in light of the factors set forth in sections 3 mitments discussed in this order and the conditions set and 4 of the BHC Act. forth in the above noted Board regulations and orders. Society, with approximately $25.8 billion in consol- For purposes of this action, these commitments and idated assets, controls three banking subsidiaries in conditions shall be deemed to be conditions imposed Ohio, Indiana, and Michigan, with approximately in writing by the Board in connection with its findings $17.8 billion in total deposits.2 Society also engages in and decisions, and, as such, may be enforced in a number of nonbanking activities that the Board has proceedings under applicable law. determined to be permissible for bank holding compa- This transaction shall not be consummated later nies. KeyCorp, with consolidated assets of approxithan three months after the effective date of this order, mately $32.4 billion, controls eleven banking subsidunless such period is extended for good cause by the iaries in New York, Washington, Maine, Oregon, Board, or by the Federal Reserve Bank of New York, Idaho, Utah, Colorado, Wyoming and Alaska, with acting pursuant to delegated authority. approximately $26.6 billion in total deposits.3 Upon By order of the Board of Governors, effective consummation of this proposal, Society would become January 10, 1994. the tenth largest commercial banking organization in the United States, with approximately $58.2 billion in consolidated assets and $44.4 billion in total deposits. Voting for this action: Chairman Greenspan, Vice Chairman Mullins, and Governors Kelley, La Ware, Lindsey, and The bank subsidiaries of Society and KeyCorp do Phillips. Absent and not voting: Governor Angell. not compete directly in any relevant banking market. Based on all the facts of record, the Board concludes JENNIFER J. JOHNSON that Society's acquisition of KeyCorp and its subsid- Associate Secretary of the Board iary banks would not result in any significantly adverse effects on competition in any relevant banking market. Orders Issued Under Sections 3 and 4 of the Bank Holding Company Act Douglas Amendment Analysis Society Corporation Section 3(d) of the BHC Act, the Douglas Amend- Cleveland, Ohio ment, prohibits the Board from approving an application by a bank holding company to acquire control of Order Approving the Merger of Bank Holding any bank located outside its home state, unless such Companies and Acquisition of Nonbanking acquisition is "specifically authorized by the statute Companies laws of the State in which such bank is located, by language to that effect and not merely by implica- Society Corporation, Cleveland, Ohio ("Society"), a tion."4 For purposes of the Douglas Amendment, the bank holding company within the meaning of the Bank home state of Society is Ohio. Holding Company Act (the "BHC Act"), has applied The Board previously has determined that the interunder section 3 of the BHC Act (12 U.S.C. § 1842) to state statutes of Colorado and Utah permit a bank merge with KeyCorp, Albany, New York, and thereby holding company located in Ohio to acquire banking indirectly acquire the subsidiary banks listed in the organizations in those states.5 Maine, Alaska, Idaho, Appendix. Society also has applied under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) to acquire the nonbanking subsidiaries of KeyCorp listed in the Appendix.1 2. Asset and deposit data are as of September 30, 1993. 3. KeyCorp also controls a savings bank in Washington. Notice of the applications, affording interested per- 4. 12 U.S.C. § 1842(d). A bank holding company's home state is sons an opportunity to submit comments, has been that state in which the operations of the bank holding company's banking subsidiaries were principally conducted on July 1, 1966 or the published (58 Federal Register 61,691 (1993)). The date on which the company became a bank holding company, whichever is later. 5. See Banc One Corporation, 79 Federal Reserve Bulletin 872 (1993) (approving an acquisition by Banc One Corporation, located in 1. Society will merge with KeyCorp, with Society as the surviving Ohio, of The First National Bank of Montrose, Montrose, Colorado), institution, which will be renamed Key Bancs Inc., Cleveland, Ohio. and Banc One Corporation, 79 Federal Reserve Bulletin 524 (1993) In connection with this proposal, Society and KeyCorp have re- (approving an acquisition by Banc One Corporation of Valley Bank & quested approval to acquire cross-options to purchase approximately Trust Company, N.A., Salt Lake City, and Valley Central Bank, 19.9 percent of the outstanding shares of each respective institution Richfield, both in Utah). Colorado law also requires that the proposed upon the occurrence of certain triggering events. These options will transaction would not result in the acquiror controlling more than become moot upon consummation of this proposal. 25 percent of the aggregate deposits in all federally insured financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 Federal Reserve Bulletin • March 1994 Oregon, and Wyoming have each enacted interstate has determined that its approval of this proposal is not banking statutes permitting out-of-state bank holding prohibited by the Douglas Amendment. Approval of companies to acquire banks in those states on a this proposal is conditioned upon Society receiving all national basis.6 required state regulatory approvals. New York and Washington have enacted banking statutes that permit out-of-state bank holding compa- Convenience and Needs Considerations nies to acquire banks in these states provided that the home state of the acquiring bank holding company In acting upon an application to acquire a depository permits the acquisition of banks in that state by New institution under the BHC Act, the Board must con- York and Washington bank holding companies, re- sider the convenience and needs of the communities to spectively, on a reciprocal basis.7 The Ohio interstate be served, and take into account the records of the banking statute permits out-of-state bank holding com- relevant depository institutions under the Commupany acquisitions if Ohio banking organizations are nity Reinvestment Act (12 U.S.C. § 2901 et seq.) permitted to acquire banking organizations in other ("CRA").11 The CRA requires the federal financial jurisdictions on terms that are, on a whole, substan- supervisory agencies to encourage financial institutially no more restrictive than the conditions estab- tions to help meet the credit needs of the local comlished under the Ohio statute.8 The New York and munities in which they operate consistent with the safe Washington state banking supervisors have informally and sound operation of such institutions. To accomindicated that Ohio statutes meet the reciprocity re- plish this end, the CRA requires the appropriate fedquirements of these states. eral supervisory authority to "assess the institution's In considering this proposal, the Board has analyzed record of meeting the credit needs of its entire comthe interstate banking statutes of all the states involved munity, including low- and moderate-income neighand has concluded that Society is authorized under borhoods, consistent with the safe and sound operathese statutes to acquire the banking subsidiaries of tion of such institution," and to take that record into KeyCorp in these states.9 The appropriate banking account in its evaluation of applications.12 supervisors in each of these states have agreed with The Board has carefully reviewed the CRA perforthis conclusion.10 In light of the foregoing, the Board mance records of Society, KeyCorp, and their subsidiary banks, as well as all other relevant facts of record, in light of the CRA, the Board's regulations, and the institutions located in Colorado. Colo. Rev. Stat. § 1-6.4-103 (Supp. Statement of the Federal Financial Supervisory Agen- 1993). Upon consummation of this proposal, Society would control less than 1 percent of the aggregate deposits in all federally insured cies Regarding the Community Reinvestment Act financial institutions in Colorado. ("Agency CRA Statement").13 6. See Me. Rev. Stat. Ann. tit. 9-B § 1013 (1980 & Supp. 1993). Alaska, Oregon, and Wyoming permit the acquisition of a bank in that state that has been continuously operated for at least three years, and Idaho permits the acquisition of a bank in that state that has been continuously operated for at least four years. See Alaska Stat. § 06.05.235 (1988); Or. Rev. Stat. § 715.065 (1991); Wyo. Stat. § 13- 9-303 (1989); and Idaho Code §§ 26-2601-2612 (1990). All the banks to be acquired in the proposal meet these conditions. 7. See N.Y. Banking Law § 142-b (McKinney 1990), permitting preliminarily indicated that acquisitions of banking institutions in each acquisitions in states with reciprocal laws that do not impose condi- respective state by an Ohio bank holding company would be permistions or restrictions materially limiting the ability of a New York sible under applicable state law, but have not yet considered the banking organization to acquire a banking organization in a state that specific merits of the Society proposal. are not applicable to an in-state bank holding company; and Wash. 11. The Board received comments from the Fair Housing Center Rev. Code Ann. § 30.04.232 (West 1986), permitting acquisitions in and the Greater Toledo Housing Coalition, both of Toledo, Ohio, states with reciprocal laws that permit Washington banking organiza- regarding data filed by Key Bank of New York and its mortgage tions to operate on terms and conditions no less favorable than those subsidiary under the Home Mortgage Disclosure Act ("HMDA") for applicable to in-state banking organizations. Washington law also the Albany/Schenectady/Troy Metropolitan Statistical Area requires that the bank to be acquired to have been continuously ("MSA"). These comments were withdrawn on January 25, 1994. operated for a minimum of three years. The institution to be acquired Society was also requested by another commenter to ensure that in the proposal meets this requirement. information on all banking products and services identified in any 8. See Ohio Rev. Code Ann. § 1101.05(b) (Anderson 1988). Society or KeyCorp agreement with a community organization be 9. The Board also has considered this transaction as if KeyCorp, made available throughout the resulting organization and that such with a home state of New York, were acquiring Society's subsidiary products and services be available as appropriate in each state. banks located in Ohio, Indiana, and Michigan. In each, the relevant Society has responded that a joint community development task force state statutes in Ohio, Indiana, and Michigan appear to permit the has been formed to determine the best products to meet the credit acquisition of a bank in that state by a bank holding company located needs of the communities and that the task force will consider any in New York. Ohio Rev. Code Ann. § 1101.05(b) (Anderson 1988); specialized circumstances related to existing programs. When plans Ind. Code Ann. §§ 28-2-16-15 & 16 (Burns 1993 & Supp. 1993); Mich. have been finalized, CRA-related and other products ofFered by the Comp. Laws 487.430b (West 1987). combined organizations will be made available throughout the branch 10. To date, the state banking supervisors in Washington, Colorado, system within each state bank. Oregon, and Maine have approved this proposal. The state banking 12. See 12 U.S.C. § 2903. supervisors in New York, Utah, Alaska, Idaho, and Wyoming have 13. 54 Federal Register 13,742 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 255 Record of Performance Under the CRA The Board notes that the 1993 Examination found no evidence of illegal discrimination or of illegal credit A. CRA Performance Examinations practices and that the bank was in substantial compliance with the provisions of the antidiscrimination laws The Agency CRA Statement provides that a CRA and regulations. Examiners found that Key Bank examination is an important and often controlling encourages credit applications from all segments of its factor in the consideration of an institution's CRA delineated community. The 1993 Examination also record and that these reports will be given great weight concluded that the bank serves all areas within its in the applications process.14 In this case, the Board delineated community, including low- and moderatenotes that Key Bank of New York ("Key Bank"), the income areas.17 largest KeyCorp bank subsidiary, received an "out- In addition, Key Bank has taken steps to increase its standing" rating from its primary federal regulator, the lending activities in the Albany area. For example, Federal Deposit Insurance Corporation ("FDIC"), at Key Bank is introducing a new program called "Key its most recent examination for CRA performance as to the City", which is designed to help inner city of May 3, 1993 ("1993 Examination"). This rating residents who rent property in low-income, integrated reflected an improvement from its previous rating of neighborhoods to buy homes in Albany, Syracuse, "satisfactory." In addition, six other KeyCorp subsid- Rochester, and Buffalo. Mortgages originated under iary banks have received "outstanding", and the this program will be held in Key Bank's portfolio, remaining three have received "satisfactory" ratings thereby permitting more liberal underwriting stanfrom their primary regulators in their most recent CRA dards. examinations.15 All three of Society's subsidiary Key Bank also offers a variety of credit products banks have received "outstanding" ratings in their and services designed to meet the housing-related most recent CRA performance examinations.16 credit needs of low- and moderate-income and minority neighborhoods within its delineated communities. B. HMDA Data and Lending Practices For example, Key Bank, in conjunction with the New York State Affordable Homeownership Development The Board has carefully reviewed the 1991 and 1992 Program and secondary market investors, started the data reported by Key Bank and its mortgage subsid- Key Affordable Mortgage Program ("KEYAMP"). iary under the HMDA. The HMDA data for 1991 The program provides mortgage financing for borrowreviewed in the 1993 Examination showed that Key ers who receive down payments in the form of grant Bank made at least one housing-related loan in 28 of monies from the state.18 Since its inception in 1991, the 44 low- and moderate-income census tracts in the Key Bank has originated over $11 million in loans, and Albany-Schenectady-Troy MSA, for a penetration now provides the product through various neighborrate of 64 percent. Examiners conducted an analysis of hood and government affordable housing programs. the census tracts in which no loans were made and Key Bank also has developed a home improvement concluded that a majority of these census tracts were program, known as the Community Home Improvelocated in the central business district of Albany and ment Rehabilitation Program ("CHIRP") which offers surrounding vicinity that is largely made up of com- qualified borrowers up to $25,000 with rates from mercial businesses and contains few residential hous- 2.5 percent to 3 percent below the rates on convening units. tional home improvement products. In addition to its own special mortgage programs, Key Bank and its mortgage subsidiary offer a variety of government-sponsored loan products. These prod- 14. Id. at 13,745 (1989). ucts include both federal and state guaranteed mort- 15. The following six KeyCorp subsidiary banks also received "outstanding" CRA ratings: Key Bank of Alaska, Anchorage, gage products such as Federal Housing Administration Alaska; Key Bank of Idaho, Boise, Idaho; Key Bank of Maine, ("FHA") mortgages, Veterans Administration Portland, Maine; Key Bank of Washington, Seattle, Washington; Key Bank of Utah, Ogden, Utah; Key Bank of Wyoming, Cheyenne, Wyoming. The following three KeyCorp subsidiary banks received "satisfactory" ratings: Key Bank U.S.A., N.A., Albany, New York; 17. In reaching this conclusion, examiners sampled accepted and Key Bank of Oregon, Portland, Oregon; and Key Savings Bank, denied loan applications and mortgage lending patterns in census Vancouver, Washington. Key Bank of Colorado, formerly known as tracts within the MS As of Key Bank's delineated community. Home Federal Savings Bank, Fort Collins, Colorado, has not been 18. Key Bank also assists municipalities, nonprofit corporations, examined since its acquisition by KeyCorp in June 1993. charitable organizations, builders, and developers construct, rehabil- 16. The three subsidiary banks of Society which received an itate, or improve owner-occupied housing through this program by "outstanding" CRA rating include Society National Bank, Cleveland, offering end-loan financing commitments, which are required before Ohio, Society National Bank, South Bend, Indiana, and Society these organizations may apply to the New York State's Affordable Bank, Ann Arbor, Michigan. Society First Federal Savings Bank, Homeownership Development Program. The bank has enabled 32 Fort Myers, Florida, received a "satisfactory" CRA rating. projects to become eligible to construct 764 housing units. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 Federal Reserve Bulletin • March 1994 ("VA") mortgages, and State of New York Mortgage factors the Board must consider under section 3 of the Agency ("SONYMA") programs.19 Key Bank has BHC Act, also are consistent with approval. also extended more than $26 million in agricultural Society and KeyCorp engage directly and through loans and $19 million in Small Business Administration subsidiaries in a number of nonbanking activities that loans in 1992. the Board has determined by order or regulations to be permissible for bank holding companies. The Board C. Conclusion Regarding Convenience and has reviewed the proposal to acquire relevant non- Needs Factor banking subsidiaries in this case under section 4(c)(8) of the BHC Act.21 These activities will be conducted in The Board has carefully considered all the facts of accordance with the relevant Board regulations and record, including the comments received, in reviewing orders. The record in this case indicates that there are the convenience and needs factor under the BHC Act. numerous providers of all nonbanking services in the Based on a review of the entire record of performance proposal, and there is no evidence in the record to by KeyCorp, Society, and their subsidiary banks, the indicate that consummation of this proposal is likely to Board believes that the efforts of KeyCorp, Society, result in any significantly adverse effects, such as and their subsidiary banks to meet the convenience undue concentration of resources, decreased or unfair and needs of all segments of the communities they competition, conflicts of interests, or unsound banking serve, including the credit needs of low- and moderate- practices that would outweigh the public benefits of income neighborhoods, are consistent with approval this proposal. Accordingly, the Board has determined of this proposal. that the balance of public interest factors it must consider under section 4(c)(8) of the BHC Act is favorable and consistent with approval of these appli- Other Considerations cations. Based on all the facts of record, the Board has determined that the financial and managerial resourc- Conclusion es20 and future prospects of Society and KeyCorp, and their respective subsidiaries, and other supervisory Based on the foregoing and other facts of record, the Board has determined that the applications should be, and hereby are, approved. The Board's approval is expressly conditioned upon compliance with all the 19. For example, the bank originated over $27 million in FHA loans, $8 million in SONYMA loans, and approximately $6.5 million in VA commitments made by Society in connection with loans in 1992. Funding for other commercial housing projects is also these applications and with the conditions referred to provided through Department of Housing and Urban Development in this order, including obtaining all required state ("HUD") loan guarantees and Section 8 subsidies. 20. The Board has carefully considered a protest from an individual approvals. The determinations as to the nonbanking alleging violation of antitying prohibitions and other improper actions activities are subject to all of the conditions in the in connection with the individual's unsuccessful attempts to obtain a real estate development loan from a KeyCorp subsidiary bank. Board's Regulation Y, including those in sections KeyCorp has generally denied any wrongdoing in its dealings with this 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and individual, and states that these allegations represent an isolated 225.23(b)(3)), and to the Board's authority to require dispute over a particular loan transaction. The Board has reviewed all facts of record, including relevant reports of examination from the such modification or termination of the activities of a bank's primary federal regulators. The Board notes that both Key- holding company or any of its subsidiaries as the Corp and Society have policies in place that explain and prohibit illegal tying, and relevant employees receive training regarding these Board finds necessary to assure compliance with, or to antitying policies. Society has committed to implement policies for the prevent evasions of, the provisions and purposes of new organization that are at least as comprehensive as Society's the BHC Act and the Board's regulations and orders policies after a review of the tying policies of both institutions. Moreover, the pending civil action, which is in its early stages of issued thereunder. The commitments and conditions discovery proceedings, will provide the individual with an opportunity relied on by the Board in reaching this decision are to fully press his claims and obtain a remedy, if his allegations are both deemed to be conditions imposed in writing by proved and a remedy is appropriate. The individual also has filed a complaint relating to a federal community development grant for a the Board in connection with its findings and decision, project financed by a KeyCorp bank with the HUD, the federal agency and, as such, may be enforced in proceedings under responsible for administering this program. HUD has determined that no further action on this complaint is warranted. applicable law. Based on all the facts of record, the Board believes that these The acquisition of the subsidiary banks shall not be matters do not warrant denial of these applications. The Board retains consummated before the thirtieth calendar day followjurisdiction and full supervisory authority to take appropriate action in the event that the court determines, or a subsequent examination finds, that illegal tying or other improper actions have occurred. Society has committed to promptly inform the Federal Reserve Bank of Cleveland of each material development in the litigation with 21. The subsidiaries of KeyCorp that engage in the nonbanking protestant. activities are identified in the Appendix. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 257 ing the effective date of this order, and the acquisition (4) Key Trust of Maine, Bangor, Maine, and thereby of the relevant banks and nonbanking companies shall engage in trust company activities pursuant to not be consummated later than three months after the § 225.25(b)(3) of the Board's Regulation Y; effective date of this order, unless such period is (5) Key Trust of the Northwest, Seattle, Washington, extended for good cause by the Board or by the and thereby engage in trust company activities pursu- Federal Reserve Bank of Cleveland, acting pursuant to ant to § 225.25(b)(3) of the Board's Regulation Y; the delegated authority. (6) Key Trust Company of the West, Cheyenne, Wyo- By order of the Board of Governors, effective ming, and thereby engage in trust company activities January 27, 1994. pursuant to § 225.25(b)(3) of the Board's Regulation Y; (7) Key Pacific Mortgage Company, Anchorage, Voting for this action: Chairman Greenspan, Vice Chair- Alaska, and thereby engage in mortgage servicing man Mullins, and Governors Kelley, La Ware, Lindsey, and activities pursuant to § 225.25(b)(l)(iii) of the Board's Phillips. Absent and not voting: Governor Angell. Regulation Y; and (8) The Tacoma Partnership, Tacoma, Washington, and JENNIFER J. JOHNSON thereby engage in community development activities Associate Secretary of the Board pursuant to § 225.25(b)(6) of the Board's Regulation Y. Appendix Society will acquire the following banking ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT organizations: INSURANCE CORPORATION IMPROVEMENT ACT (1) Key Bancshares of Albany, and thereby acquire By the Board Key Bank of New York, Albany, and Key Bank, USA, N.A., Albany, all of New York; Bancshares of Eastern Arkansas, Inc. (2) Key Bancshares of Alaska, Inc., and thereby Forrest City, Arkansas acquire Key Bank of Alaska, both of Anchorage, Alaska; Order Approving Application to Acquire a Savings (3) Key Bancshares of Oregon, and thereby acquire Association Key Bank of Oregon, both of Portland, Oregon; (4) Key Bancshares of Idaho, and thereby acquire Key Bancshares of Eastern Arkansas, Inc., Forrest City, Bank of Idaho, both of Boise, Idaho; Arkansas ("Bancshares"), has requested the Board's (5) Key Bancshares of Maine, Inc., and thereby ac- approval under section 5(d)(3) of the Federal Deposit quire Key Bank of Maine, both of Portland, Maine; Insurance Act (12 U.S.C. § 1815(d)(3)) (the "FDI (6) Key Bancshares of Washington, and thereby ac- Act"), as amended by the Federal Deposit Insurance quire Key Bank of Washington, and Key Savings Corporation Improvement Act of 1991 (Pub. L. No. Bank, all of Tacoma, Washington; 102-242, § 501, 105 Stat. 2236, 2388-2392 (1991)) to (7) Key Bancshares of Utah, Inc., and thereby acquire merge WynBanc Savings, a Federal Savings Bank, Key Bank of Utah, both of Salt Lake City, Utah; Wynne, Arkansas ("WynBanc") into Bancshares's (8) Key Bankshares, Inc., and thereby acquire Key subsidiary's bank, First National Bank of Eastern Ar- Bank of Wyoming, both of Cheyenne, Wyoming; and kansas, Forrest City, Arkansas ("FNB"). Section (9) Key Bank of Colorado, Fort Collins, Colorado. 5(d)(3) of the FDI Act requires the Board to review any proposed merger between a Savings Association Insur- Society will acquire the following nonbanking ance Fund member and any Bank Insurance Fund subsidiaries: ("BIF") member, if the acquiring or resulting institution is a BIF insured subsidiary of a bank holding (1) Key Bank Life Insurance, Ltd., Phoenix, Arizona, company, and, in reviewing these proposals, to follow and thereby engage in the underwriting and sale of the procedures and consider the factors set forth in credit-related insurance pursuant to § 225.25(b)(8)(i) section 18(c) the Bank Merger Act (12 U.S.C. § 828(c) of the Board's Regulation Y; ("Bank Merger Act")).1 This transaction also is subject (2) Key Trust Company, Albany, New York, and thereby engage in trust company activities pursuant to § 225.25(b)(3) of the Board's Regulation Y; 1. 12 U.S.C. § 1815(d)(3)(E). These factors include considerations (3) Key Trust of Florida, N.A., Orlando, Florida, and relating to competition, financial and managerial resources and future prospects of the existing and proposed institutions, and the convethereby engage in trust company activities pursuant nience and needs of the communities to be served. 12 U.S.C. to § 225.25(b)(3) of the Board's Regulation Y; § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 Federal Reserve Bulletin • March 1994 to review under the Bank Merger Act by the Office of Bancshares has not met the credit needs of low- and the Comptroller of the Currency ("OCC"), the primary moderate-income residents, and supports these allegaregulator for FNB.2 tions with comments from FNB's most recent perfor- Notice of the application, affording interested per- mance examination under the Community Reinvestsons an opportunity to submit comments, has been ment Act (12 U.S.C. § 2901 et seq.) ("CRA") by the published in accordance with the Bank Merger Act OCC as of August 27, 1993 ("1993 examination"). and the Board's Rules of Procedure (12 C.F.R. Specifically, Protestant notes that the 1993 examina- 262.3(b)). Reports on the competitive effects of the tion characterized the bank's participation in special merger were requested from the United States Attor- loan programs to meet the identified credit needs of the ney General, the OCC, and the Federal Deposit Insur- community as occasional, and maintains that FNB ance Corporation. The time for filing comments has makes an insufficient number of loans through governexpired, and the Board has considered the application ment insured, guaranteed or subsidized loan programs and all comments received in light of the factors set for housing, small business or small farms. Protestant forth in the Bank Merger Act and section 5(d)(3) of the also cites comments of examiners regarding the lack of FDI Act. a formal CRA program at the bank or director involve- Bancshares is the 35th largest depository institution ment in CRA activities, including credit ascertainin Arkansas, controlling approximately $134.6 million ment. In considering the convenience and needs facin deposits, representing less than 1 percent of the tor, the Board has carefully reviewed the entire record total deposits in depository institutions in Arkansas.3 of CRA performance of FNB and WynBanc in light of WynBanc Savings is the 141st largest depository insti- these comments and all other relevant facts of record. tution in Arkansas, controlling approximately $16 mil- Initially, the Board notes that FNB's record of CRA lion in deposits on a weighted basis, representing less performance was rated "satisfactory" in the 1993 than 1 percent of the total deposits in depository examination. In this regard, FNB's overall lending institutions in the state.4 Upon consummation of the activities were considered to be satisfactory by examproposal, Bancshares would become the 25th largest iners. Moreover, the 1993 examination specifically commercial depository organization in the state, con- concluded that FNB had met its community's identitrolling approximately $166.6 million in deposits, rep- fied credit needs through the origination of residential resenting less than 1 percent of the total deposits in mortgages, consumer, small business, and small farm depository institutions in Arkansas. loans. The 1993 examination also noted with approval Bancshares and WynBanc do not compete directly FNB's participation in other community development in any relevant banking market. Based on all the facts activities, including the bank's participation in the of record, the Board concludes that the proposal Arkansas Human Development Corporation's small would not result in any significantly adverse effects on business lending program and its investment in local competition in any relevant banking market. community bonds. FNB also has initiated steps in response to examiner Convenience and Needs Considerations comments regarding a formal CRA program and board of director oversight of CRA activities. For example, In analyzing the convenience and needs factor, the FNB recently adopted a revised CRA Policy that Board has considered the comments of an individual addresses all the assessment areas for CRA perforcommenter ("Protestant") submitted in connection mance. This Policy includes procedures for ensuring with this application. Protestant generally alleges that board of director oversight of the formulation and supervision of FNB's CRA activities, and requires formal discussions of all CRA activities, including 2. The OCC has not yet acted on the proposal. ascertainment efforts by individual board members,5 3. In this context, depository institutions include commercial banks, at board of director meetings. OCC examiners have savings banks and savings associations. Asset and deposit data are as reviewed these initiatives and consider the measures of June 30, 1992. 4. State deposit data before consummation are based on calcula- sufficient to address the comments in the 1993 examitions in which the deposits of thrift institutions are included at nation. 50 percent. The Board previously has indicated that thrift institutions In light of the foregoing and other facts of record, have become or have the potential to become, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin the Board does not believe that Protestant's comments 788 (1990); National City Corporation, 70 Federal Reserve Bulletin warrant denial of this application. Based on all facts of 743 (1984). Because the deposits of WynBanc would be transferred to a commercial bank under this proposal, those deposits are included at 100 percent in the calculation of Bancshares's post-consummation share of state deposits. See Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal Reserve Bulletin 669, 5. The 1993 examination concluded that FNB's ascertainment 670 n.9 (1990). efforts generally were satisfactory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 259 record, the Board concludes that considerations relat- and hereby is, approved. This approval is subject to ing to the convenience and needs of the communities FNB's obtaining the required approval of the approprito be served, including FNB's record of performance ate Federal banking agency for the proposed merger under the CRA, are consistent with approval. under the Bank Merger Act. The Board's approval of this application also is conditioned upon compliance by Other Considerations Bancshares and WynBanc with the commitments made in connection with this application. For purposes of this The Board also concludes that the financial and man- action, the commitments and conditions relied on in agerial resources and future prospects of FNB are reaching this decision are both conditions imposed in consistent with approval of this application. More- writing by the Board and, as such, may be enforced in over, the record in this case shows that: proceedings under applicable law. (1) The transaction will not result in the transfer of The proposal may not be consummated before the any federally insured depository institution's federal thirtieth calendar day following the effective date of deposit insurance from one federal deposit insur- this order, and this proposal may not be consummated ance fund to the other; later than three months after the effective date of this (2) Bancshares and WynBanc currently meet, and order, unless such period is extended by the Board or upon consummation of the proposed transaction will by the Federal Reserve Bank of St. Louis, acting continue to meet, all applicable capital standards; pursuant to delegated authority. and By order of the Board of Governors, effective (3) The proposed transaction would comply with the January 10, 1994. interstate provisions of the Bank Holding Company Act if WynBanc were a state bank that Bancshares Voting for this action: Chairman Greenspan, Vice Chairwas applying to acquire directly. See 12 U.S.C. man Mullins, and Governors Kelley, La Ware, Lindsey and Phillips. Absent and not voting: Governor Angell. § 1815(d)(3). Based on the foregoing and all the facts of record, the JENNIFER J. JOHNSON Board has determined that this application should be, Associate Secretary of the Board ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By the Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Acquiring Approval Bank Holding Company Thrift Bank(s) Date Dakota Company, Inc., South Dakota Bancorp, Dakota State Bank, January 4, 1994 Minneapolis, Minnesota Inc., Milbank, South Minneapolis, Minnesota Dakota South Dakota Financial Bancorporation, Inc., Minneapolis, Minnesota Bank of South Dakota, Watertown, South Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 Federal Reserve Bulletin • March 1994 FDICIA—Continued Acquired Acquiring Approval Bank Holding Company Thrift Bank(s) Date Union Bancshares, Inc., First Community Federal Union National Bank January 13, 1994 Wichita, Kansas Savings and Loan of Wichita, Association, Wichita, Kansas Winfield, Kansas APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) Date First Bank System, Inc., Boulevard Bancorp, Inc., January 28, 1994 Minneapolis, Minnesota Chicago, Illinois First Bank System, Inc. Boulevard Bancorp, Inc. February 2, 1994 Minneapolis, Minnesota Chicago, Illinois Incus Co. Ltd., Laredo National Bancshares, January 31, 1994 Tortola, British Virgin Islands Laredo, Texas Kline Investment Co. Ltd., Tortola, British Virgin Islands Trans Financial Bancorp, Inc., Kentucky Community Bancorp, Inc., January 13, 1994 Bowling Green, Kentucky Maysville, Kentucky Union Planters Corporation, Anderson County Bank, January 26, 1994 Memphis, Tennessee Clinton, Tennessee Section 4 Effective Applicant(s) Bank(s) Date First Security Corporation, First Security Investor Services, Inc. January 11, 1994 Salt Lake City, Utah Salt Lake City, Utah Northern Trust Corporation, Northern Futures Corporation, January 13, 1994 Chicago, Illinois Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 261 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 Bank South Corporation, Chattahoochee Bancorp, Atlanta January 21, 1994 Atlanta, Georgia Inc., Atlanta, Georgia Bank South Corporation, Merchant Bank Atlanta January 26, 1994 Atlanta, Georgia Corporation, Atlanta, Georgia Citizens Bancshares, Inc., The Firestone Bank, Cleveland December 30, 1994 Salineville, Ohio Lisbon, Ohio City National Bancshares, Inc. TM&S Bancshares, Inc., Dallas January 21, 1994 Colorado City, Texas Dover, Delaware The City National Bank of Colorado City, Colorado City, Texas Clatonia Bancshares, Inc., Farmers Bank of Kansas City January 19, 1994 Clatonia, Nebraska Clatonia, Clatonia, Nebraska Clay BancShares, Inc., Flora Bank & Trust, St. Louis January 19, 1994 Flora, Illinois Flora, Illinois Commerce Bancshares, Inc., CBI-Central Kansas, Kansas City January 13, 1994 Kansas City, Missouri Kansas City, Missouri The Walnut Valley Corporation, El Dorado, Kansas Community First Bankshares, The Bank of Cherry Kansas City January 21, 1994 Inc., Creek, Denver, Colorado Denver, Colorado, Mesa National Bank, Grand Junction, Colorado Western National Bank of Colorado, Colorado Springs, Colorado Southern Colorado Bancshares, Inc., Pueblo West, Colorado Decatur Bancshares, Inc., Decatur County Bank, St. Louis January 12, 1994 Decaturville, Tennessee Decaturville, Tennessee East Side Financial, Inc., East Side Savings Bank, Chicago January 14, 1994 Chicago, Illinois Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 Federal Reserve Bulletin • March 1994 Section 3—Continued Reserve Effective Applicants) Bank(s) Bank Date First Bancorporation of Ohio, Peoples Savings Bank, Cleveland January 25, 1994 Akron, Ohio Federal Savings Bank, Ashtabula, Ohio Flint Hills Bancshares, Inc., The Citizens State Bank, Kansas City December 31, 1993 Gridley, Kansas Gridley, Kansas Gold Bancshares, Inc., Provident Bancshares, Kansas City January 12, 1994 Prairie Village, Kansas Inc., St. Joseph, Missouri Greater Columbia Bancshares, 1st Columbia Corp., Chicago January 10, 1994 Inc., Columbus, Wisconsin Portage, Wisconsin Greater Metro Bank Holding Montbello Bankcorp, Kansas City January 20, 1994 Comany, Inc., Aurora, Colorado Denver, Colorado Intercontinental Bank Shares Garden Ridge State Bank, Dallas December 30, 1993 Corporation, San Antonio, Texas San Antonio, Texas Market Street Bancshares, Inc., Wayne County Bank and St. Louis December 30, 1993 McLeansboro, Illinois Trust Company, Fairfield, Illinois Odem Bancshares, Inc., First State Bank of Dallas January 13, 1994 Odem, Texas Odem, Odem, Texas Rudolph Bancshares, Inc., Farmers and Merchants Chicago January 14, 1994 Rudolph, Wisconsin Bank, Rudolph, Wisconsin Southeast Kansas Bancshares, The Exchange State Bank Kansas City January 14, 1994 Inc., of St. Paul, Girard, Kansas St. Paul, Kansas Prescott State Bank Holding Company, Inc., Prescott, Kansas TM&S Bancshares, Inc., The City National Bank Dallas January 21, 1994 Dover, Delaware of Colorado City, Colorado City, Texas Section 4 Nonbanking Activity/ Reserve Effective Applicant(s) Company Bank Date Cass Commercial Corporation, Cass Logistics, Inc., St. Louis January 14, 1994 St. Louis, Missouri Bridgeton, Missouri First Bank Holding Company, Harvey Insurance Minneapolis January 7, 1994 Inc., Agency, Inc., Harvey, North Dakota Harvey, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 263 Section 4—Continued Nonbanking Activity/ Reserve Effective Applicant(s) Company Bank Date First Union Corporation, Internet, Inc., Richmond January 10, 1994 Charlotte, North Carolina Reston, Virginia Five Flags Banks, Inc., Bank Data, Inc., Atlanta January 20, 1994 Pensacola, Florida Pensacola, Florida Old Kent Financial Corporation, Grand Rapids Hope Chicago December 29, 1993 Grand Rapids, Michigan Limited Partnership II, Grand Rapids, Michigan Peoples First Corporation, First Kentucky Bancorp, St. Louis January 4, 1994 Paducah, Kentucky Inc., Central City, Kentucky Zappco, Inc., to engage de novo in Minneapolis December 31, 1993 St. Cloud, Minnesota management consulting advice to nonaffiliated depository institutions PENDING CASES INVOLVING THE BOARD OF Action against Board and others for damages and GOVERNORS injunctive relief for alleged constitutional and statutory violations caused by issuance of Federal Reserve notes. This list of pending cases does not include suits against the Federal Reserve Banks in which the Board Richardson v. Board of Governors, et al., No. 93-C of Governors is not named a party. 836A (D. Utah, filed August 30,1993). Action against Board and others for damages and injunctive relief for alleged constitutional and statutory violations DLG Financial Corp. v. Board of Governors, No. caused by issuance of Federal Reserve notes. On 94-10078 (5th Cir., filed January 20,1994). Appeal of September 20, 1993, the Board filed a motion to district court dismissal of appellants' action to enjoin dismiss. the Board and the Federal Reserve Bank of Dallas First National Bank ofBellaire v. Board of Governors, from taking certain enforcement actions, and for No. H-93-1708 (S.D. Texas, filed June 8, 1993). money damages on a variety of tort and contract Action to enjoin possible enforcement actions by theories. Board of Governors and other bank regulatory agen- Board of Governors v. DLG Financial Corp., Nos. cies. On September 23, 1993, the agencies filed a 93-2944 and 94-20013 (5th Cir., filed December 14, motion to dismiss. 1993 and December 31, 1993). Appeal of a temporary Kubany v. Board of Governors, et al., No. 93-1428 (D. restraining order and a preliminary injunction ob- D.C., filed July 9, 1993). Action challenging Board tained by the Board freezing assets of a corporation determination under the Freedom of Information and an individual pending administrative adjudication Act. The Board's motion to dismiss was filed on of civil money penalty assessments by the Board. October 15, 1993. Board of Governors v. Oppegard, No. 93-3706 (8th Cir., filed November 1, 1993). Appeal of district Bennett v. Greenspan, No. 93-1813 (D. D.C., filed court order ordering appellant Oppegard to comply April 20, 1993). Employment discrimination action. with prior order requiring compliance with Board Amann v. Prudential Home Mortgage Co., et al., No. removal, prohibition, and civil money penalty order. 93-10320 WD (D. Massachusetts, filed February 12, The Board's brief was filed on January 20, 1994. 1993). Action for fraud and breach of contract Scott v. Board of Governors, No. 930905843CV (Dist. arising out of a home mortgage. On April 17, 1993, Ct., Salt Lake County, Utah, filed October 8, 1993). the Board filed a motion to dismiss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 Federal Reserve Bulletin • March 1994 Adams v. Greenspan, No. 93-0167 (D. D.C., filed der by default pursuant to the provisions of January 27, 1993). Action by former employee under 12 U.S.C. § 1818(e) and 12 C.F.R. 19.19(c). the Civil Rights Act of 1964 and the Rehabilitation Upon review of the administrative record, the Board Act of 1973 concerning termination of employment. issues this Final Decision adopting the ALJ's Recom- The Board's motion for partial summary judgment mended Decision and orders that the attached Order of was filed on January 4, 1994. Prohibition issue against Lowder. CBC, Inc. v. Board of Governors, No. 92-9572 (10th I. Statement of the Case Cir., filed December 2, 1992). Petition for review of civil money penalty assessment against a bank hold- A. Procedural History ing company and three of its officers and directors for failure to comply with reporting requirements. On May 6, 1993, the OCC issued a Notice of Intention Petition for review denied November 30, 1993. to Prohibit Further Participation (the "Notice") Zemel v. Board of Governors, No. 92-1056 (D. D.C., against Lowder pursuant to the provisions of filed May 4, 1992). Age Discrimination in Employ- 12 U.S.C. § 1818(e)(1), seeking Lowder's prohibition ment Act case. The parties' cross-motions for sum- from further participation in banking. The OCC almary judgment are pending. leged among other things that Lowder, while director Board of Governors v. Ghaith R. Pharaon, No. 91- of the Bank, had conducted the business of a loan CIV-6250 (S.D. New York, filed September 17, brokerage company that sold loans to the Bank and 1991). Action to freeze assets of individual pending generated $648,072 in commissions for Lowder. The administrative adjudication of civil money penalty OCC alleged that the Bank's losses attributable to its assessment by the Board. On September 17, 1991, dealings with the brokerage exceeded $1,200,000. Acthe court issued an order temporarily restraining the cordingly, the OCC charged that Lowder had particitransfer or disposition of the individual's assets. pated in a series of violations of law, unsafe or unsound banking practices, and breaches of fiduciary duty that caused substantial financial loss or other FINAL ENFORCEMENT DECISION ISSUED BY THE damage to the Bank, seriously prejudiced the interests BOARD OF GOVERNORS of the Bank's depositors, involved financial gain to Lowder, and evidenced Lowder's willful and continu- In the Matter of a Notice to Prohibit Further Partici- ing disregard for the Bank's safety or soundness.1 The pation Against Notice required that Lowder file an answer to the charges within 20 days of service of the Notice. Paul Lowder The Notice was served upon Lowder by certified Former Director, Agent, and United States mail on May 12, 1993, the receipt of Institution-Affiliated Party which was acknowledged by Lowder on May 14, 1993. First National Bank in Kaufman, See Exhibit 2 to Motion For Entry of an Order of Kaufman, Texas Default. OCC Enforcement Counsel consented to an extension of the deadline for an answer until June 21, OCC No. AA-EC-93-72 1993, and then offered Lowder an additional opportunity to contest the charges. When no answer from Final Decision Lowder was received, OCC Enforcement Counsel on July 28, 1993 filed a motion for entry of an order of This is an administrative proceeding pursuant to the default. The motion was supported by certified mail Federal Deposit Insurance Act ("FDI Act") in which receipts attached as exhibits purporting to demonthe Office of Comptroller of the Currency of the strate Lowder's receipt of the Notice, and by a certif- United States of America ("OCC") seeks to prohibit icate from Lisa Chase, OCC Docket Clerk, attesting the Respondent, Paul Lowder, from further participa- that Lowder had not filed an answer to the Prohibition tion in the affairs of any financial institution as a result Notice as of July 20, 1993. of his conduct as a director of the First National Bank in Kaufman, Kaufman, Texas (the "Bank"). The proceeding comes to the Board of Governors of the 1. In addition, the OCC sought relief against Lowder in the form of Federal Reserve System (the "Board") in the form of an assessment of civil money penalties and an order to cease and a Recommended Decision by Administrative Law desist and to take affirmative corrective action. The OCC also initiated proceedings seeking sanctions against other Bank insiders. The only Judge ("ALJ") Arthur L. Shipe recommending that proceeding now before the Board is the prohibition proceeding against the Board issue an Order of Prohibition against Low- Lowder. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 265 Lowder filed no response to the motion for default. vide that, following the issuance of a notice of inten- On August 27, 1993, the ALJ issued an order directing tion to prohibit an institution-affiliated party, a Re- Lowder to show cause why the motion for default spondent's failure to file an answer within the time should not be granted. The order to show cause was provided constitutes a waiver of his or her right to personally served upon Lowder and the record con- appear and to contest the allegations in the notice. tains a certified mail receipt purporting to be signed by 12 C.F.R. 19.19(c). If no timely answer is filed, En- Lowder on October 12, 1993. Lowder did not respond forcement Counsel is authorized to file a motion for to the show cause order. entry of an order of default. Id. Upon a finding that no On November 5, 1993, the ALJ granted the OCC good cause has been shown for the failure to file a Enforcement Counsel's motion for default, finding that timely answer, the ALJ is directed to file a recomthe Notice had been duly served upon Lowder, that mended decision containing the findings and relief Lowder had never filed an answer, and that no good sought by the agency. Id. cause had been shown for Lowder's failure to file a timely answer. Accordingly, ALJ Shipe issued a Rec- II. Discussion ommended Decision recommending that the Board issue an Order of Prohibition against Lowder pursuant In the circumstances of this case, it is clear that the to the applicable rule for default upon failure to file an OCC has established the basis for a default order of answer. prohibition under the terms of the Uniform Rules. The The Recommended Decision on Default was re- fact that Lowder was duly served with notice of the ferred to the Board for final decision on November 16, proceeding and of his obligation to answer is supported 1993. Lowder has filed no exceptions to the Recom- by the signed certified mail receipt. Lowder was mended Decision. granted repeated opportunities to respond to the charges and there is no basis for any inference that B. Statutory Framework Lowder's default is the result of any mischance or inadvertence. The ALJ acted reasonably and in accor- The FDI Act sets forth the basis upon which a federal dance with the Uniform Rules in finding that no good banking agency may issue against a bank official an cause existed for relieving Lowder from the conseorder of removal from office or prohibition from fur- quences of his failure to submit an answer to the ther participation in banking. In order to issue such an Notice. order pursuant to section 1818(e)(1), the Board must make each of three findings: Conclusion (1) There must be a specified type of misconduct — violation of law, unsound practice, or breach of For these reasons, the Board orders the issuance of fiduciary duty; the attached Order of Prohibition. (2) The misconduct must have a prescribed effect — financial gain to the respondent or financial harm or Order of Prohibition other damage to the institution; and (3) The misconduct must involve culpability of a WHEREAS, pursuant to section 8(e) of the Federal certain degree—personal dishonesty or willful or Deposit Insurance Act, as amended, (the "Act") continuing disregard for the safety or soundness of (12 U.S.C. § 1818(e)), the Board of Governors of the the institution. 12 U.S.C. § 1818(e)(1). Federal Reserve System ("the Board") is of the opinion, for the reasons set forth in the accompanying In prohibition cases brought by the OCC with respect Final Decision, that a final Order of Prohibition should to a party affiliated with a national bank, the recom- issue against PAUL LOWDER, mended findings and conclusions of the ALJ are NOW, THEREFORE, IT IS HEREBY ORcertified to the Board to determine whether any order DERED, pursuant to sections 8(e), and 8(j) of the Act, shall issue. 12 U.S.C. § 1818(e)(4). (12 U.S.C. §§ 1818(e) and 1818(j)), that: The Uniform Rules of Practice and Procedure 1. In the absence of prior written approval by the ("Uniform Rules")2 applicable to this proceeding pro- Board, and by any other Federal financial institution regulatory agency where necessary pursuant to sec- 2. The Uniform Rules, adopted concurrently by each of the financial institution regulatory agencies, including the Board and the OCC, constitute a materially identical set of procedural rules that control 12 C.F.R. Part 19, Subpart A (OCC) with 12 C.F.R. Part 263, Subpart most aspects of those agencies' enforcement proceedings. Compare A (Board). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 Federal Reserve Bulletin • March 1994 tion 8(e)(7)(B) of the Act (12 U.S.C. § 1818(e)(7)(B)), Founders' Bank PAUL LOWDER is hereby prohibited: Bryn Mawr, Pennsylvania (a) From participating in the conduct of the affairs of any bank holding company, any insured depos- The Federal Reserve Board announced on January 4, itory institution or any other institution specified 1994, the issuance of an Order of Assessment of a Civil in subsection 8(e)(7)(A) of the Act (12 U.S.C. Money Penalty against the Founders' Bank, Bryn § 1818(e)(7)(A)); Mawr, Pennsylvania, a state member bank. (b) From soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote any proxy, consent, or authorization with respect Marlen V. Johnson to any voting rights in any institution described in Salt Lake City, Utah subsection 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)); The Federal Reserve Board announced on January 4, (c) From violating any voting agreement previ- 1994, the issuance of an Order of Prohibition against ously approved by the appropriate Federal bank- Marlen V. Johnson, a former institution-affiliated ing agency; or party of United London Group, Inc., Salt Lake City, (d) From voting for a director, or from serving or Utah. acting as an institution-affiliated party as defined in section 3(u) of the Act, (12 U.S.C. § 1813(u)), including serving as an officer, director, or employee. John L. Piesik Upton, Wyoming 2. This Order, and each provision hereof, is and shall remain fully effective and enforceable until expressly stayed, modified, terminated or sus- The Federal Reserve Board announced on January 24, pended in writing by the Board. 1994, the issuance of an Order of Assessment of a Civil 3. This Order shall become effective upon the expi- Money Penalty against John L. Piesik, an institutionration of thirty days after service is made. affiliated party and former Senior Vice President of the By Order of the Board of Governors, this tenth day Union State Bank, Upton, Wyoming. of January, 1994. Board of Governors of the Federal Reserve System WRITTEN AGREEMENTS APPROVED BY FEDERAL William W. Wiles RESERVE BANKS Secretary of the Board United Financial Banking Companies, Inc. Vienna, Virginia FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD OF GOVERNORS The Federal Reserve Board announced on January 24, Dyer F & M Bancshares, Inc. 1994, the execution of a Written Agreement among the Dyer, Tennessee Federal Reserve Bank of Richmond, the Commissioner of Financial Institutions, Bureau of Financial The Federal Reserve Board announced on January 31, Institutions of the Commonwealth of Virginia, and 1994, the issuance of a Cease and Desist Order against United Financial Banking Companies, Inc., Vienna, Dyer F & M Bancshares, Inc., Dyer, Tennessee. Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

267 Membership of the Board of Governors of the Federal Reserve System, 1913-94 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin. .Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg... .New York do. Term expired Aug. 9, 1918. Frederic A. Delano .Chicago do. Resigned July 21, 1918. W.P.G. Harding .Atlanta do. Term expired Aug. 9, 1922. Adolph C. Miller.... .San Francisco do. Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss New York Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah Chicago Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt New York June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills Cleveland Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell Minneapolis May 12, 1921 Resigned May 12, 1923. Milo D. Campbell Chicago Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger Cleveland May 1, 1923 Resigned Sept. 15, 1927. George R. James St. Louis May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.4 Edward H. Cunningham...Chicago do Died Nov. 28, 1930. Roy A. Young Minneapolis Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee Kansas City May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta May 19, 1933 Resigned Aug. 15, 1934. M.S. Symczak Chicago June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas Kansas City do Served until Feb. 10, 1936.3 Marriner S. Eccles San Francisco Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee Cleveland .do Served until Apr. 4, 1946.3 Ronald Ransom Atlanta .do Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis Richmond June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper New York Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans Richmond Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. ..St. Louis Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton Boston Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe Philadelphia Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton Atlanta Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell Minneapolis .do Resigned June 30, 1952. Wm. McC. Martin, Jr New York April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr San Francisco Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson Kansas City do Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston Philadelphia Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller Minneapolis Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson Dallas Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr Atlanta Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell Chicago Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane Richmond Nov. 29, 1963 Served until Mar. 8, 1974.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Sherman J. Maisel San Francisco Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer Philadelphia Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill Dallas May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns New York Jan. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan St. Louis Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher San Francisco June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland Kansas City June 11, 1973 Resigned May 15, 1976. Henry C. Wallich Boston Mar. 8, 1974 Resigned Dec. 15, 1986. Philip E. Coldwell Dallas Oct. 29, 1974 Served through Feb. 29, 1980. Philip C. Jackson, Jr Atlanta July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee Richmond Jan. 5, 1976 Served until Feb. 7, 1986.3 Stephen S. Gardner Philadelphia Feb. 13, 1976 Died Nov. 19, 1978. David M. Lilly Minneapolis June 1, 1976 Resigned Feb. 24, 1978. G. William Miller San Francisco Mar. 8, 1978 Resigned Aug. 6, 1979. Nancy H. Teeters Chicago Sept. 18, 1978 Served through June 27, 1984. Emmett J. Rice New York June 20, 1979 Resigned Dec. 31, 1986. Frederick H. Schultz Atlanta July 27, 1979 Served through Feb. 11, 1982. Paul A. Volcker Philadelphia Aug. 6, 1979 Resigned August 11, 1987. Lyle E. Gramley Kansas City May 28, 1980 Resigned Sept. 1, 1985. Preston Martin San Francisco Mar. 31, 1982 Resigned April 30, 1986. Martha R. Seger Chicago July 2, 1984 Resigned March 11, 1991. Wayne D. Angell Kansas City Feb. 7, 1986 Served through Feb. 9, 1994. Manuel H. Johnson Richmond Feb. 7, 1986 Resigned August 3, 1990. H. Robert Heller San Francisco Aug. 19, 1986 Resigned July 31, 1989. Reappointed in 1990. Edward W. Kelley, Jr Dallas May 26, 1987 Reappointed in 1992. Alan Greenspan New York Aug. 11, 1987 John P. LaWare Boston Aug. 15, 1988 David W. Mullins, Jr St. Louis May 21, 1990 Resigned Feb. 14, 1994. Lawrence B. Lindsey Richmond Nov. 26, 1991 Susan M. Phillips Chicago Dec. 2, 1991 Chairmen4 Vice Chairmen4 Charles S. Hamlin Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano Aug. 10, 1914-Aug. 9, 1916 W.P.G. Harding Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer Sept. 16, 1930-May 10, 1933 J.J. Thomas Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1956-Dec. 2, 1947 Marriner S. Eccles Nov. 15, 1934-Jan. 31, 1948 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe Apr. 15, 1948-Mar. 31, 1951 J.L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. ..Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell May 1, 1973-Feb. 13, 1976 Arthur F. Burns Feb. 1, 1970-Jan. 31, 1978 Stephen S. Gardner Feb. 13, 1976-Nov. 19, 1978 G. William Miller Mar. 8, 1978-Aug. 6, 1979 Frederick H. Schultz ....July 27, 1979-Feb. 11, 1982 Paul A. Volcker Aug. 6, 1979-Aug. 11, 1987 Preston Martin Mar. 31, 1982-Apr. 30, 1986 Alan Greenspan Aug. 11, 1987- Manuel H. Johnson Aug. 4, 1986-Aug. 3, 1990 David W. Mullins, Jr. ...July 24, 1991-Feb. 14, 1994 EX-OFFICIO MEMBERS1 Secretaries of the Treasury Comptrollers of the Currency W.G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams...Feb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes May 1, 1923-Dec. 17, 1924 Andrew W. Mellon Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J.W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J.F.T. O'Connor May 11, 1933-Feb. 1, 1936 Henry Morgenthau Jr. ...Jan. 1, 1934-Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act, the composed of seven appointive members; that the Secretary of the Federal Reserve Board was composed of seven members, including Treasury and the Comptroller of the Currency should continue to five appointive members, the Secretary of the Treasury, who was serve as members until Feb. 1, 1936, or until their successors were ex-officio chairman of the Board, and the Comptroller of the Cur- appointed and had qualified; and that thereafter the terms of members rency. The original term of office was ten years, and the five original should be fourteen years and that the designation of Chairman and appointive members had terms of two, four, six, eight, and ten years Vice Chairman of the Board should be for a term of four years. respectively. In 1922 the number of appointive members was in- 2. Date after words "Resigned" and "Retired" denotes final day of creased to six, and in 1933 the term of office was increased to twelve service. years. The Banking Act of 1935, approved Aug. 23, 1935, changed the 3. Successor took office on this date. name of the Federal Reserve Board to the Board of Governors of the 4. Chairman and Vice Chairman were designated Governor and Federal Reserve System and provided that the Board should be Vice Governor before Aug. 23, 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 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 A27 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 A3 5 Open-end investment companies—Net sales A17 Bank debits and deposit turnover and assets A18 Loans and securities—All commercial banks A35 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

2 Federal Reserve Bulletin • March 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 A39 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 A46 Output, capacity, and capacity utilization SECURITIES HOLDINGS AND TRANSACTIONS A47 Industrial production—Indexes and gross value A65 Foreign transactions in securities A49 Housing and construction A66 Marketable U.S. Treasury bonds and A50 Consumer and producer prices notes—Foreign transactions A51 Gross domestic product and income A52 Personal income and saving INTEREST AND EXCHANGE RATES International Statistics A67 Discount rates of foreign central banks A67 Foreign short-term interest rates SUMMARY STATISTICS A68 Foreign exchange rates A53 U.S. international transactions—Summary A69 Guide to Statistical Releases and A54 U.S. foreign trade Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3 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 Fanners 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 DomesticN onfinancial Statistics • March 1994 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1993 1993 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Ql Q2r Q3r Q4 Aug.r Sept.r Oct. Nov. Dec. Reserves of depository institutions2 1 Total 9.3 10.8 12.4 14.6 9.7 16.6 20.0r 12.8 1.7 2 Required 8.7 12.4 12.3 14.6 12.8 14.0 20.4 12.9 2.3 3 Nonborrowed 9.5 10.6 10.9 16.0 7.5 15.2 23. lr 16.9 1.8 4 Monetary base3 9.1 9.8 11.4 9.8 11.5 15.2 1.9 8.8 4.7 Concepts of money, liquid assets, and debt4 5 Ml 6.5 10.6 13.0 10.6 10.1 13.6 10.4 10.2 5.6 6 M2 -1.9 2.1 3.0 2.4 1.1 4.1 .7 4.0 2.3 7 M3 -3.9 2.3 1.2 2.8 .6 3.9 2.0 3.7 2.8 8 L -2.4 3.2 1.2 n.a. 2.7 -2.2 2.4 4.0 n.a. 9 Debt 4.0r 4.5 5.7 n.a. 5.5 5.3 3.7 6.2 n.a. Nontransaction components 10 In M25 -5.4 -1.5 -1.3 -1.2 -2.9 -.1 -3.7 1.1 .7 11 In M3 only6 -14.2r 3.1 -8.5 4.5 -2.0 2.4 9.1r 2.0 6.1 Time and savings deposits Commercial banks 12 Savings, including MMDAs 1.6 4.6 5.3 4.7 6.9 5.1 1.2r 8.2 4.9 13 Small time7 -7.9 -7.9 -10.8 -9.0 -11.2 -8.8 -9.6 -10.7 -2.6 14 Large time8'9 -20.2r -.5 -8.7 -1.7 4.4 -5.7 3.5r -10.2 1.3 Thrift institutions 15 Savings, including MMDAs -.2 .7 2.9 .5 1.7 .8 .(f -.6 2.2 16 Smalltime7, -18.6 -10.4 -12.0 -12.6 -10.4 -12.0 -13.5r -11.8 -15.7 17 Large time8'9 -15.5 -7.9 -4.1 -6.7 -9.3 -1.9 .0 -5.6 -35.8 Money market mutual funds 18 General purpose and broker-dealer -10.2 -1.7 -3.0 2.3 -6.1 -7.6 2.2 12.7 10.4 19 Institution-only -14.1 .5 -12.6 6.7 -10.5 5.0 15.5 .6 12.8 Debt components4 20 Federal 7.6 10.4 9.1 n.a. 8.7 7.1 -1.5 9.1 n.a. 21 Nonfederal 2.7r 2.4 4.4 n.a. 4.3 4.6 5.6 5.1 n.a. 1. Unless otherwise noted, rates of change are calculated from average tax-exempt, institution-only money market funds. Excludes amounts held by amounts outstanding during preceding month or quarter. depository institutions, the U.S. government, money market funds, and foreign 2. Figures incorporate adjustments for discontinuities, or "breaks," associ- banks and official institutions. Also excluded is the estimated amount of overnight ated with regulatory changes in reserve requirements. (See also table 1.20.) RPs and Eurodollars held by institution-only money market funds. Seasonally 3. 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, bankers cash items in the process of collection and Federal Reserve float, and (4) other acceptances, and other debt instruments. Data are derived from the Federal checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial and automatic transfer service (ATS) accounts at depository institutions, credit sectors are monthly averages, derived by averaging adjacent month-end levels. union share draft accounts, and demand deposits at thrift institutions. Seasonally Growth rates for debt reflect adjustments for discontinuities over time in the levels adjusted Ml is computed by summing currency, travelers checks, demand of debt presented in other tables. deposits, and OCDs, each seasonally adjusted separately. 5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements (general purpose and broker-dealer), (3) savings deposits (including MMDAs), (RPs) issued by all depository institutions and overnight Eurodollars issued to and (4) small time deposits. U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (includ- 6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. ing MMDAs) and small time deposits (time deposits—including retail 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 Average of Average of daily figures for week ending on date indicated daily figures Factor 1993 1993 Oct. Nov. Dec. Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 362,732r 367,056 374,694 366,428 370,370 368,522 369,810 370,574 377,295 380,106 U.S. government securities 2 Bought outright—System account 320,632 326,769 332,413 327,122 327,755 327,285 332,435 333,227 332,605 331,751 3 Held under repurchase agreements ... 2,759 2,535 4,060 1,366 5,177 3,843 0 0 6,231 8,725 Federal agency obligations 4 Bought outright 4,782 4,732 4,706 4,734 4,734 4,722 4,719 4,719 4,719 4,685 5 Held under repurchase agreements ... 390 206 265 121 450 229 0 0 100 803 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 11 19 22 2 10 25 2 21 30 24 8 Seasonal credit 196 72 30 71 65 51 34 37 30 21 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 608r 722 829 788 889 1,077 909 671 866 1,023 11 Other Federal Reserve assets 33,355r 32,001 32,369 32,223 31,290 31,291 31,711 31,897 32,714 33,073 12 Gold stock 11,056 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,054 13 Special drawing rights certificate account . 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 14 Treasury currency outstanding 21,898 21,958 22,019 21,955 21,969 21,983 21,997 22,011 22,025 22,039 ABSORBING RESERVE FUNDS 15 Currency in circulation 353,183 356,688 362,510 356,845 357,247 359,149 359,518 360,504 363,505 365,998 16 Treasury cash holdings 385 371 375 370 368 371 375 373 373 376 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,512 5,607 6,469 5,605 5,971 5,416 4,482 5,165 8,264 7,116 18 Foreign 288 434 238 520 220 393 197 221 252 258 19 Service-related balances and adjustments 6,260r 6,340 6,632 6,419 6,215 6,460 6,475 6,862 6,628 6,604 20 Other 298 296 293 301 286 309 295 306 303 258 21 Other Federal Reserve liabilities and capital 9,537 9,340 9,628 9,308 9,672 9,563 9,419 9,628 9,771 9,786 22 Reserve balances with Federal Reserve Banks 28,242r 29,010 29,641 28,088 31,433 27,917 30,119 28,598 29,296 30,821 End-of-month figures Wednesday figures Oct. Nov. Dec. Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 360,143' 372,593 384,223 367,131 371,640 367,445 362,984 372,203 382,976 383,659 U.S. government securities 2 Bought outright—System account 317,961 326,804 332,015 328,812 327,247 329,838 326,773 334,522 331,236 332,903 3 Held under repurchase agreements ... 3,592 8,013 12,187 812 6,428 898 0 0 11,675 11,418 Federal agency obligations 4 Bought outright 4,734 4,719 4,638 4,734 4,734 4,719 4,719 4,719 4,719 4,638 5 Held under repurchase agreements ... 449 429 1,025 280 605 15 0 0 359 885 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 7 16 84 1 22 27 1 127 51 29 8 Seasonal credit 138 40 10 67 62 34 35 37 23 18 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 383r 1,290 906 1,571 1,115 967 -376 823 1,775 167 11 Other Federal Reserve assets 32,878r 31,282 33,358 30,854 31,427 30,947 31,831 31,975 33,136 33,602 12 Gold stock 11,056 11,054 11,053 11,054 11,054 11,054 11,054 11,054 11,054 11,053 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 21,927 21,983 22,053 21,955 21,969 21,983 21,997 22,011 22,025 22,039 ABSORBING RESERVE FUNDS 15 Currency in circulation 352,815 359,697 365,229 356,910 358,708 359,647 359,999 361,367 366,000 367,182 16 Treasury cash holdings 379 370 377 368 370 376 373 373 376 377 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,032 6,334 14,809 6,705 5,328 5,025 3,628 5,832 8,823 5,407 18 Foreign 390 596 386 239 231 281 175 278 288 286 19 Service-related balances and adjustments 6,339r 6,460 6,574 6,419 6,215 6,460 6,475 6,862 6,628 6,604 20 Other 325 297 397 300 281 317 295 314 269 245 21 Other Federal Reserve liabilities and capital 8,879 9,561 9,292 9,331 9,514 9,247 9,476 9,482 9,670 9,617 22 Reserve balances with Federal Reserve Banks3 25,985r 30,334 28,283 27,887 32,035 27,148 23,634 28,778 32,017 35,051 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 Domestic Nonfinancial Statistics • March 1994 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages Reserve classification 1993 July Aug. Sept. Oct.r Nov. 1 Reserve balances with Reserve Banks2 26,659 25,368 29,382 26,462 26,562 26,564 27,274 28,297 29,018 29,382 2 Total vault cash1 32,510 34,535 36,812 34,106 34,535 34,516 35,217 35,184 35,655 36,812 3 Applied vault cash 28,872 31,172 33,484 30,776 31,189 31,203 31,863 31,739 32,278 33,484 4 Surplus vault cash 3,638 3,364 3,328 3,330 3,347 3,313 3,355 3,445 3,376 3,328 5 Total reserves 55,532 56,540 62,866 57,238 57,750 57,767 59,136 60,036 61,296 62,866 6 Required reserves 54,553 55,385 61,796 56,328 56,661 56,815 58,046 58,947 60,195 61,7% 7 Excess reserve balances at Reserve Banks 979 1,155 1,070 911 1,089 952 1,090 1,089 1,101 1,070 8 Total borrowings at Reserve Banks 192 124 82 181 244 352 428 285 89 82 9 Seasonal borrowings 381 181 310 1402 2100 2340 2360 1902 750 310 10 Extended credit Biweekly averages of daily figures for weeks ending on date indicated 1993 Sept. 1 Sept. 15 Sept. 29 Oct. 13 Oct. 27r Nov. 10" Nov. 24 Dec. 8 Dec. 22 Jan. 5 1 Reserve balances with Reserve Banks 26,564 27,719 26,837 27,843 28,798 28,017 29,742 28,999 28,950 30,395 2 Total vault cash3 33,879 35,332 35,157 35,805 34,313 36,216 34,894 36,494 37,202 36,489 3 Applied vault cash4, 30,693 31,999 31,781 32,278 30,946 32,767 31,566 33,125 33,821 33,279 4 Surplus vault cash 3,187 3,333 3,377 3,527 3,368 3,449 3,328 3,369 3,381 3,210 5 Total reserves6 57,257 59,718 58,618 60,121 59,744 60,784 61,308 62,124 62,771 63,674 6 Required reserves 56,136 58,845 57,318 58,985 58,692 59,722 60,205 60,962 61,880 62,407 7 Excess reserve balances at Reserve Banks ... 1,121 874 1,300 1,137 1,052 1,062 1,102 1,162 891 1,267 8 Total borrowings at Reserve Banks 305 544 321 420 205 132 74 56 59 142 9 Seasonal borrowings 246 226 247 222 189 105 68 43 34 16 10 Extended credit 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 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 Dec. 6 Dec. 13 Dec. 20 Dec. 27 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 71,872 72,374 74,470 71,363 72,462 75,691 76,163 72,673 68,417 2 For all other maturities 13,186 13,106 13,725 14,109 15,288 14,280 15,005 14,583 16,880 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 18,901 17,810 18,334 19,661 20,951 16,875 17,942 17,699 16,918 4 For all other maturities 21,742 23,608 24,776 24,741 25,832 24,839 25,404 26,238 26,977 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 17,286 17,051 19,065 16,313 13,286 18,896 17,411 15,779 13,248 6 For all other maturities 40,504 42,218 41,454 40,533 39,820 39,409 41,429 39,773 36,999 All other customers 7 For one day or under continuing contract 30,126 31,327 31,972 32,409 29,779 32,719 31,242 29,752 26,641 8 For all other maturities 14,262 13,512 13,492 13,767 17,064 13,246 14,431 14,644 22,013 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 42,365 39,656 42,090 37,366 43,412 44,822 42,230 43,399 39,727 10 To all other specified customers 26,175 29,119 29,407 27,794 29,747 28,140 26,980 26,438 22,123 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 DomesticN onfinancial Statistics • March 1994 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 Federal Reserve Bank 2/ O 4/ n 9 4 Effective date Previous rate 2/ O 4/ n 9 4 Effective date Previous rate 2/ O 4/ n 9 4 Effective date Previous rate Boston 7/2/92 3.5 3.10 2/3/94 2/3/94 3.60 New York ... 7/2/92 2/3/94 2/3/94 Philadelphia.. 7/2/92 2/3/94 2/3/94 Cleveland 7/6/92 2/3/94 2/3/94 Richmond 7/2/92 2/3/94 2/3/94 Atlanta 7/2/92 2/3/94 2/3/94 Chicago 7/2/92 2/3/94 2/3/94 St. Louis 7/7/92 2/3/94 2/3/94 Minneapolis.. 7/2/92 2/3/94 2/3/94 Kansas City.. 7/2/92 2/3/94 2/3/94 Dallas 7/2/92 2/3/94 2/3/94 San Francisco 7/2/92 3.5 3.10 2/3/94 3.60 2/3/94 3.60 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 1981—May 5 13-14 14 1986—Aug. 21 5.5-6 5.5 8 14 14 22 5.5 5.5 1978-—Jan. 9 6-6.5 6.5 Nov. 2 13-14 13 ?n 6.5 6.5 6 13 13 1987—Sept. 4 5.5-6 6 May u . 6.5-7 7 Dec. 4 12 12 11 6 6 12 . . 7 7 July 3 . . 7-7.25 7.25 1982—July 20 11.5-12 11.5 1988—Aug. 9 6-6.5 6.5 10 . . 7.25 7.25 23 11.5 11.5 11 6.5 6.5 Aug. 71 . 7.75 7.75 Aug. 2 11-11.5 11 Sept. 77. .. 8 8 3 11 11 1989—Feb. 24 6.5-7 7 Oct. 16 . . 8-8.5 8.5 16 10.5 10.5 27 7 7 20 . . 8.5 8.5 27 10-10.5 10 Nov. 1 . 8.5-9.5 9.5 30 10 10 1990—Dec. 19 6.5 6.5 3 . , 9.5 9.5 Oct. 12 9.5-10 9.5 13 9.5 9.5 1991—Feb. 1 6-6.5 6 1979--July 70 . 10 10 Nov. 22 9-9.5 9 4 6 6 Aug. 17 10-10.5 10.5 26 9 9 Apr. 30 5.5-6 5.5 7,0 .. 10.5 10.5 Dec. 14 8.5-9 9 May 2 5.5 5.5 Sept. 19 . . 10.5-11 11 15 8.5-9 8.5 Sept. 13 5-5.5 5 , 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—Apr. 9 8.5-9 9 7 4.5 4.5 13 9 9 Dec. 20 3.5-4.5 3.5 1980--Feb. 15 12-13 13 Nov. 21 8.5-9 8.5 24 3.5 3.5 19 . . 13 13 26 8.5 8.5 May 79 12-13 13 Dec. 24 8 8 1992—July 2 3-3.5 3 30 12 12 7 3 3 June 13 . . 11-12 11 1985—May 20 7.5-8 7.5 7 1 9 6 . . . . 1 11 0 1 1 1 0 24 7.5 7.5 In effect Feb. 4, 1994 3 3 July 78 . . 10-11 10 1986—Mar. 7 7-7.5 7 Sept. 26.. 11 11 10 7 7 Nov. 17 .. 12 12 Apr. 21 6.5-7 6.5 Dec. 5 . . 12-13 13 July 11 6 6 1. Available on a short-term basis to help depository institutions meet tempo- ordinarily is charged on extended-credit loans outstanding less than thirty days; rary needs for funds that cannot be met through reasonable alternative sources. however, at the discretion of the Federal Reserve Bank, this time period may be The highest rate established for loans to depository institutions may be charged on shortened. Beyond this initial period, a flexible rate somewhat above rates on adjustment-credit loans of unusual size that result from a major operating problem market sources of funds is charged. The rate ordinarily is reestablished on the first at the borrower's facility. business day of each two-week reserve maintenance period, but it is never less 2. Available to help relatively small depository institutions meet regular than the discount rate applicable to adjustment credit plus 50 basis points. seasonal needs for funds that arise from a clear pattern of intrayearly movements 4. For earlier data, see the following publications of the Board of Governors: in their deposits and loans and that cannot be met through special industry Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual lenders. The discount rate on seasonal credit takes into account rates on market Statistical Digest, 1970-1979. sources of funds and ordinarily is reestablished on the first business day of each In 1980 and 1981, the Federal Reserve applied a surcharge to short-term two-week reserve maintenance period; however, it is never less than the discount adjustment-credit borrowings by institutions with deposits of $500 million or more rate applicable to adjustment credit. that had borrowed in successive weeks or in more than four weeks in a calendar 3. May be made available to depository institutions when similar assistance is quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, not reasonably available from other sources, including special industry lenders. 1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge Such credit may be provided when exceptional circumstances (including sus- was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5, tained deposit drains, impaired access to money market funds, or sudden 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 deterioration in loan repayment performance) or practices involve only a partic- percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the ular institution, or to meet the needs of institutions experiencing difficulties surcharge was changed from a calendar quarter to a moving thirteen-week period. adjusting to changing market conditions over a longer period (particularly at times The surcharge was eliminated on Nov. 17, 1981. of deposit disintermediation). The discount rate applicable to adjustment credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Type of deposit2 Net transaction accounts' 1 $0 million-$51.9 million... 12/21/93 2 More than $51.9 million4.. 12/21/93 3 Nonpersonal time deposits' 12/27/90 4 Eurocurrency liabilities6. . 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve permit no more than six preauthorized, automatic, or other transfers per month, Banks or vault cash. Nonmember institutions may maintain reserve balances with of which no more than three may be checks, are not transaction accounts (such a Federal Reserve Bank indirectly on a pass-through basis with certain approved accounts are savings deposits). institutions. For previous reserve requirements, see earlier editions of the Annual The Monetary Control Act of 1980 requires that the amount of transaction Report or the Federal Reserve Bulletin. Under provisions of the Monetary accounts against which the 3 percent reserve requirement applies be modified Control Act, depository institutions include commercial banks, mutual savings annually by 80 percent of the percentage change in transaction accounts held by banks, savings and loan associations, credit unions, agencies and branches of all depository institutions, determined as of June 30 each year. Effective Dec. 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 institution be subject to a zero percent reserve requirement. The Board is to adjust Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for the amount of reservable liabilities subject to this zero percent reserve require- institutions that report quarterly. ment each year for the succeeding calendar year by 80 percent of the percentage 5. For institutions that report weekly, the reserve requirement on nonpersonal increase in the total reservable liabilities of all depository institutions, measured time deposits with an original maturity of less than 1 Vi years was reduced from 3 on an annual basis as of June 30. No corresponding adjustment is to be made in percent to IVi percent for the maintenance period that began Dec. 13, 1990, and the event of a decrease. On Dec. 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 lVi years negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable or more has been zero since Oct. 6, 1983. deductions); and (2) net other transaction accounts. The exemption applies only to For institutions that report quarterly, the reserve requirement on nonpersonal accounts that would be subject to a 3 percent reserve requirement. time deposits with an original maturity of less than IVi 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 Domestic NonfinancialS tatistics • March 1994 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1993 TTyypp aa ee nn dd ooff mm ttrr aa aa tt nn uu ss rr aa iitt cc yy tt iioonn 11999900 11999911 11999922 May June July Aug. Sept. Oct. Nov. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 24,739 20,158 14,714 349 7,280 0 902 366 1,396 5,931 2 Gross sales 7,291 120 1,628 0 0 0 0 0 0 0 3 Exchanges 241,086 277,314 308,699 26,610 24,821 35,943 27,775 31,128 25,783 27,641 4 Redemptions 4,400 1,000 1,600 0 0 0 0 0 468 0 Others within one year 5 Gross purchases 425 3,043 1,096 0 0 0 100 411 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 25,638 24,454 36,662 4,108 4,002 0 1,497 3,074 913 5,158 8 Exchanges -27,424 -28,090 -30,543 -4,013 -2,152 0 -5,491 -1,861 -1,566 -7,641 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 0 0 200 1,100 2,400 0 100 11 Gross sales 200 0 0 0 0 0 0 0 0 0 12 Maturity shifts -21,770 -21,211 -34,478 -3,652 -4,002 666 -834 -3,074 -31 -4,689 13 Exchanges 25,410 24,594 25,811 3,245 2,152 0 3,866 1,861 1,566 5,341 Five to ten years 14 Gross purchases 0 1,280 2,818 0 0 0 500 797 0 0 15 Gross sales 100 0 0 0 0 0 0 0 0 0 16 Maturity shifts -2,186 -2,037 -1,915 -333 0 -666 -432 0 -882 -272 17 Exchanges 789 2,894 3,532 468 0 0 1,100 0 0 2,300 More than ten years 18 Gross purchases 0 375 2,333 0 0 0 100 717 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,681 -1,209 -269 -123 0 0 -231 0 0 -197 21 Exchanges 1,226 600 1,200 300 0 0 525 0 0 0 All maturities 22 Gross purchases 25,414 31,439 34,079 349 7,280 200 2,702 4,691 1,396 6,031 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 0 468 0 Matched transactions 25 Gross sales 1,369,052 1,570,456 1,482,467 124,462 111,726 115,504 136,037 124,898 115,160 109,941 26 Gross purchases 1,363,434 1,571,534 1,480,140 123,227 113,095 117,074 135,705 122,578 112,837 112,772 Repurchase agreements 27 Gross purchases 219,632 310,084 378,374 33,987 53,051 41,190 53,053 62,905 27,693 38,493 28 Gross sales 202,551 311,752 386,257 28,640 43,342 56,246 48,263 61,399 30,397 34,072 29 Net change in U.S. Treasury securities 24,886 29,729 20,642 4,461 18,357 -13,286 7,160 3,878 -4,099 13,283 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 41 22 366 125 35 70 15 Repurchase agreements 33 Gross purchases 41,836 22,807 14,565 2,105 2,968 3,479 2,485 9,810 3,812 2,841 34 Gross sales 40,461 23,595 14,486 2,105 2,019 4,428 2,415 7,734 5,509 2,861 35 Net change in federal agency obligations 1,192 -1,085 -554 -41 927 -1,315 -55 2,041 -1,767 -35 36 Total net change in System Open Market Account 26,078 28,644 20,089 4,420 19,284 -14,601 7,105 5,919 -5,866 13,248 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 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Oct. 31 Nov. 30 Dec. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,054 11,054 11,054 11,054 11,053 11,056 11,054 11,053 2 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 3 Coin 368 373 383 366 358 406 372 372 Loans 4 To depository institutions 61 36 164 74 47 145 55 94 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 4,719 4,719 4,719 4,719 4,638 4,734 4,719 4,638 8 Held under repurchase agreements 15 0 0 359 885 449 429 1,025 9 Total U.S. Treasury securities 330,736 326,773 334,522 342,911 344,321 321,553 334,817 344,202 10 Bought outright2 329,838 326,773 334,522 331,236 332,903 317,961 326,804 332,015 11 Bills 162,832 155,126 162,874 159,588 161,255 151,055 159,798 160,368 12 Notes 128,453 132,076 132,076 132,076 132,076 128,128 128,453 132,076 13 Bonds 38,553 39,572 39,572 39,572 39,572 38,778 38,553 39,572 14 Held under repurchase agreements 898 0 0 11,675 11,418 3,592 8,013 12,187 15 Total loans and securities 335,531 331,529 339,405 348,064 349,891 326,882 340,020 349,960 16 Items in process of collection 6,594 6,624 7,081 7,594 5,607 5,052 7,808 6,454 17 Bank premises 1,050 1,051 1,053 1,053 1,054 1,048 1,050 1,055 Other assets 18 Denominated in foreign currencies 22,446 22,472 22,486 22,538 22,550 22,580 22,443 22,340 19 All other4 7,439 8,277 8,493 9,568 10,048 9,229 7,692 9,999 20 Total assets 392,500 389,398 397,973 408,255 408,578 384,270 398,458 409,251 LIABILITIES 21 Federal Reserve notes 338,407 338,747 340,111 344,717 345,878 331,672 338,456 343,925 22 Total deposits 38,745 35,494 42,407 47,877 48,036 39,169 43,277 50,543 23 Depository institutions 33,123 31,397 35,983 38,496 42,097 32,422 36,050 34,951 24 U.S. Treasury—General account 5,025 3,628 5,832 8,823 5,407 6,032 6,334 14,809 25 Foreign—Official accounts 281 175 278 288 286 390 596 386 26 Other 317 295 314 269 245 325 297 397 27 Deferred credit items 6,100 5,681 5,973 5,991 5,048 4,550 7,165 5,491 28 Other liabilities and accrued dividends 2,461 2,414 2,408 2,570 2,533 2,482 2,514 2,489 29 Total liabilities 385,713 382,335 390,899 401,155 401,495 377,872 391,411 402,449 CAPITAL ACCOUNTS 30 Capital paid in 3,383 3,389 3,394 3,377 3,377 3,338 3,367 3,401 31 Surplus 3,054 3,054 3,054 3,054 3,054 2,984 3,054 3,401 32 Other capital accounts 350 620 626 669 652 75 626 0 33 Total liabilities and capital accounts 392,500 389,398 397,973 408,255 408,578 384,270 398,458 409,251 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 346,488 346,455 345,158 352,077 348,827 333,735 346,718 350,906 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 406,346 409,059 410,795 411,312 409,832 397,576 405,827 409,265 36 LESS: Held by Federal Reserve Banks 67,939 70,312 70,684 66,595 63,954 65,904 67,371 65,339 37 Federal Reserve notes, net 338,407 338,747 340,111 344,717 345,878 331,672 338,456 343,925 Collateral held against notes, net: 38 Gold certificate account 11,054 11,054 11,054 11,054 11,053 11,056 11,054 11,053 39 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 319,335 319,675 321,040 325,645 326,806 312,599 319,384 324,854 42 Total collateral 338,407 338,747 340,111 344,717 345,878 331,672 338,456 343,925 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 • March 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 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Oct. 29 Nov. 30 Dec. 31 1 Total loans 61 36 164 74 47 145 56 94 2 Within fifteen days1 30 4 132 73 47 71 31 93 3 Sixteen days to ninety days 31 33 32 1 0 75 25 11 4 Ninety-one days to one year 0 0 0 0 0 0 0 00 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 330,736 326,773 334,522 342,911 344,321 317,961 326,804 332,015 10 Within fifteen days1 18,768 14,989 17,258 24,430 30,068 3,625 6,211 9,262 11 Sixteen days to ninety days 76,052 71,037 79,724 76,959 72,356 85,863 84,677 81,344 12 Ninety-one days to one year 104,601 105,002 101,796 105,777 106,153 100,828 104,601 105,184 13 One year to five years 76,750 79,346 79,346 79,346 79,346 74,911 76,750 79,826 14 Five years to ten years 23,651 24,659 24,659 24,659 24,659 21,623 23,651 24,659 15 More than ten years 30,913 31,739 31,739 31,739 31,739 31,111 30,913 31,739 16 Total federal agency obligations 4,734 4,719 4,719 5,078 5,523 4,734 4,719 4,638 17 Within fifteen days1 40 25 81 620 1,065 104 290 180 18 Sixteen days to ninety days 816 816 735 555 565 651 498 565 19 Ninety-one days to one year 1,081 1,081 1,081 1,081 1,078 1,105 1,127 1,078 20 One year to five years 2,067 2,067 2,112 2,112 2,105 2,139 2,074 2,105 21 Five years to ten years 589 589 569 569 569 594 589 569 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 Item 1990 1991 1992 1993 Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct.r Nov. Dec. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 41.77 45.53 54.35 60.54 56.88 57.12 57.57 58.03 58.84 59.82 60.46 60.54 2 Nonborrowed reserves 41.44 45.34 54.23 60.46 56.76 56.94 57.32 57.68 58.41 59.53 60.37 60.46 3 Nonborrowed reserves plus extended credit 41.46 45.34 54.23 60.46 56.76 56.94 57.32 57.68 58.41 59.53 60.37 60.46 4 Required reserves 40.10 44.56 53.20 59.47 55.88 56.21 56.48 57.08 57.75 58.73 59.36 59.47 5 Monetary base6 293.19 317.17 350.80 386.07 364.77 368.07 370.98 374.53 379.26 381.77 384.58 386.07 Not seasonally adjusted 6 Total reserves7 43.07 46.98 56.06 62.42 55.88 56.96 57.42 57.38 58.69 59.53 60.73 62.42 7 Nonborrowed reserves ^ 42.74 46.78 55.93 62.34 55.76 56.78 57.17 57.03 58.26 59.24 60.64 62.34 8 Nonborrowed reserves plus extended credit 42.77 46.78 55.93 62.34 55.76 56.78 57.17 57.03 58.26 59.24 60.64 62.34 9 Required reserves 41.40 46.00 54.90 61.35 54.88 56.05 56.33 56.43 57.60 58.44 59.62 61.35 10 Monetary base9 296.68 321.07 354.55 390.58 364.08 368.73 372.02 374.10 377.75 380.82 384.30 390.58 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 59.12 55.53 56.54 62.87 56.10 57.24 57.75 57.77 59.14 60.04 61.30 62.87 12 Nonborrowed reserves 58.80 55.34 56.42 62.78 55.98 57.06 57.51 57.42 58.71 59.75 61.21 62.78 13 Nonborrowed reserves plus extended credit5 58.82 55.34 56.42 62.78 55.98 57.06 57.51 57.42 58.71 59.75 61.21 62.78 14 Required reserves 57.46 54.55 55.39 61.80 55.10 56.33 56.66 56.82 58.05 58.95 60.20 61.80 15 Monetary base1 313.70 333.61 360.90 397.59 370.46 375.19 378.48 380.53 384.25 387.51 391.12 397.59 16 Excess reserves 1.66 .98 1.16 1.07 1.00 .91 1.09 .95 1.09 1.09 1.10 1.07 17 Borrowings from the Federal Reserve .33 .19 .12 .08 .12 .18 .24 .35 .43 .29 .09 .08 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) what required reserves would have been in past periods had current reserve weekly statistical release. Historical data and estimates of the impact on required requirements been in effect. Break-adjusted required reserves include required reserves of changes in reserve requirements are available from the Monetary and reserves against transactions deposits and nonpersonal time and savings deposits Reserves Projections Section, Division of Monetary Affairs, Board of Governors (but not reservable nondeposit liabilities). of the Federal Reserve System, Washington, DC 20551. 9. The break-adjusted monetary base equals (1) break-adjusted total reserves 2. Figures reflect adjustments for discontinuities, or "breaks," associated with (line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3) regulatory changes in reserve requirements. (See also table 1.10) (for all quarterly reporters on the "Report of Transaction Accounts, Other 3. Seasonally adjusted, break-adjusted total reserves equal seasonally Deposits and Vault Cash" and for all 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 • March 1994 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1993 IItteemm 1990 1991 1992 1993 Dec. Dec. Dec. Dec. Sept.r Oct.r Nov. Dec. Seasonally adjusted Measures2, 1 Ml 827.2 899.3 1,026.6 1,131.2 1,106.8 1.116.4 1,125.9 1,131.2 2 M2 3.345.5 3,445.8 3,494.8 3,551.7 3,531.0 3,533.2 3,545.0 3,551.7 3 M3 4,116.7r 4,168.1 4,163.4r 4,207.7 4,177.7 4,184.8 4,197.8 4,207.7 4 L 4.966.6 4,982.3 5,040.4r n.a. 5,066.2 5.076.5 5,093.4 n.a. 5 Debt 10,670.1 ll,145.5r 11,721.lr n.a. 12,141.9 12,179.2 12,241.8 n.a. Ml components 6 Currency . 246.7 267.2 292.3 321.5 316.4 318.2 320.0 321.5 7 Travelers checks 7.8 7.8 8.1 8.0 7.8 7.9 8.0 8.0 8 Demand deposits3 278.2 290.5 340.8 386.1 376.6 380.2 385.5 386.1 9 Other checkable deposits6 294.5 333.8 385.2 415.7 406.0 410.1 412.5 415.7 Nontransaction components 10 In M27 2,518.3 2,546.6 2,468.2' 2,420.5 2,424.2 2,416.8 2,419.1 2,420.5 11 In M3 771.3 722.3 668.6r 656.0 646.7 651.6 652.7 656.0 Commercial banks 12 Savings deposits, including MMDAs 582.2 666.2 756.1 786.5 777.2 778.0 783.3 786.5 13 Small time deposits9. 610.3 601.5 506.9 466.8 475.8 472.0 467.8 466.8 14 Large time deposits • 368.8 341.3 288.6r 269.7 270.9 271.7 269.4 269.7 Thrift institutions 15 Savings deposits, iircluding MMDAs 338.6 376.3 429.9 432.1 431.5 431.5 431.3 432.1 16 Small time deposits 562.0 463.2 360.4 316.7 327.8 324.1 320.9 316.7 17 Large time deposits 120.9 83.4 67.5 61.7 63.9 63.9 63.6 61.7 Money market mutual funds 18 General purpose and broker-dealer . 350.5 363.9 342.3 336.4 329.4 330.0 333.5 336.4 19 Institution-only 135.9 182.1 202.3 198.8 194.1 196.6 196.7 198.8, Debt components 20 Federal debt 2,490.7 2,763.8 3,068.4 n.a. 3.270.4 3,266.3 3,291.2 n.a. 21 Nonfederal debt 8,179.4 8,381.7r 8,652.7r n.a. 8.871.5 8,912.9 8,950.6 n.a. Not seasonally adjusted Measures1 22 Ml 843.7 916.4 1,045.7 1,152.9 1,098.5 1,111.1 1,128.6 1,152.9 23 M2 3,357.0 3,457.9 3,568.8 3,517.4 3,527.2 3,548.4 3,568.8 24 M3 4,126.3 4.178.1 4,175.5r 4,222.5 4,165.0 4,174.8 4,203.7 4,222.5 25 L 4,988.0 5.004.2 5,064^ n.a. 5,054.8 5,065.8 5,107.2 n.a. 26 Debt 10,667.7 ll,144.6r Il,722.0r n.a. 12,110.2 12,152.2 12,232.1 n.a. Ml components 27 Currency3 249.5 269.9 295.0 324.9 314.8 317.4 319.9 324.9 28 Travelers checks4 7.4 7.4 7.8 7.6 8.2 8.0 7.7 7.6 29 Demand deposits5 289.9 302.9 355.2 402.3 373.1 381.0 390.7 402.3 30 Other checkable deposits6 296.9 336.3 387.7 418.0 402.4 404.7 410.4 418.0 Nontransaction components 31 In M2 2,513.2 2,541.5 2,463.3r 2,415.9 2,418.9 2,416.1 2,419.7 2,415.9 32 In M38 769.3 720.2r 666.4r 653.8 647.6 647.7 655.4 653.8 Commercial banks 33 Savings deposits, including MMDAs 580.1 663.3 752.3 782.3 775.0 776.1 782.4 782.3 34 Small time deposits'. 610.5 602.0 507.7 467.6 476.5 473.1 468.5 467.6 35 Large time deposits10, 11 367.7 340.1 287.5r 268.7 271.2 270.8 269.2 268.7 Thrift institutions 36 Savings deposits, including MMDAs 337.3 374.7 427.8 429.8 430.3 430.5 430.8 429.8 37 Small time deposits 562.1 463.6 360.9 317.3 328.3 324.9 321.4 317.3 38 Large time deposits10 120.6 83.1 67.3 61.5 64.0 63.7 63.6 61.5 Money market mutual funds 39 General purpose and broker-dealer 348.4 361.5 340.0 334.2 326.8 327.1 331.7 334.2 40 Institution-only 136.2 182.4 202.4 198.9 190.7 192.4 197.1 198.9 Repurchase agreements and Eurodollars 41 Overnight 74.7 76.3 74.7 84.7 81.9 84.4 84.9 84.7 42 Term 158.3 130.1 126.7r 143.1 141.6 140.4 144.5 143.1 Debt components 43 Federal debt 2,491.3 2,765.0 3,069.8 n.a. 3,251.9 3,249.4 3.287.0 n.a. 44 Nonfederal debt 8,176.3 8,379.7r 8,652.2r n.a. 8,858.2 8,902.8 8.945.1 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 • March 1994 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1993 IItteemm 11999922 Apr. May June July Aug. Sept. Oct/ Nov. Dec. Interest rates (annual effective yields) INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts ... 2.33 1.86 2.15 2.12 2.09 2.06 2.01 1.96 1.92 1.89 1.86 2 Savings deposits2 2.88 2.46 2.68 2.65 2.61 2.59 2.55 2.51 2.49 2.48 2.46 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 2.90 2.65 2.72 2.70 2.68 2.67 2.66 2.63 2.63 2.64 2.65 4 92 to 182 days 3.16 2.91 2.99 2.97 2.97 2.97 2.96 2.92 2.91 2.92 2.91 5 183 days to 1 year 3.37 3.14 3.19 3.18 3.19 3.18 3.17 3.13 3.11 3.13 3.14 6 More than 1 year to 2 Vi years 3.88 3.55 3.66 3.64 3.65 3.64 3.63 3.55 3.54 3.54 3.55 7 More than 2Vi years 4.77 4.29 4.47 4.47 4.44 4.43 4.40 4.28 4.27 4.28 4.29 BIF-INSURED SAVINGS BANKS3 8 Negotiable order of withdrawal accounts ... 2.45 1.87 2.25 2.20 2.13 2.09 2.07 2.01 1.98 1.95 1.87 9 Savings deposits2 3.20 2.62 2.98 2.93 2.88 2.83 2.80 2.73 2.68 2.65 2.62 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 3.13 2.70 2.91 2.87 2.86 2.80 2.79 2.76 2.75 2.73 2.70 li 92 to 182 days 3.44 3.02 3.23 3.19 3.17 3.15 3.12 3.05 3.05 3.03 3.02 12 183 days to 1 year 3.61 3.31 3.48 3.45 3.44 3.40 3.37 3.33 3.34 3.32 3.31 13 More than 1 year to 2Vi years 4.02 3.66 3.86 3.76 3.79 3.72 3.73 3.69 3.68 3.69 3.66 14 More than 2Vi years 5.00 4.62 4.84 4.79 4.75 4.73 4.73 4.62 4.57 4.60 4.62 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts ... 286,541 305,259 280,073 283,860 287,555 284,496 287,675 286,056 289,813 297,329 305,259 16 Savings deposits2 738,253 766,418 745,038 753,452 754,790 757,716 761,919 758,835 765,372 770,609 766,418 1/ Personal 578,757 597,844 586,863 591,231 592,545 593,448 593,318 592,028 595,715 598,200 597,844 18 Nonpersonal 159,496 168,573 158,175 162,221 162,245 164,268 168,601 166,807 169,657 172,408 168,573 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 38,474 29,463 34,675 33,213 31,743 30,803 30,017 30,384 30,022 29,730 29,463 20 92 to 182 days 127,831 109,561 122,136 119,0% 114,846 112,497 109,603 108,574 108,504 109,228 109,561 21 183 days to 1 year 163,098 146,286 156,957 157,559 156,549 156,431 155,074 152,501 149,758 147,334 146,286 22 More than 1 year to 2 Vi years 152,977 140,131 146,830 144,330 144,804 143,605 141,377 139,406 139,042 139,315 140,131 23 More than 2Vi years 169,708 182,321 178,657 179,761 179,297 180,983 181,762 184,414 183,790 180,972 182,321 24 IRA/Keogh Plan deposits 147,350 143,468 147,463 146,450 146,523 146,196 145,955 145,636 144,776 145,002 143,468 BIF-INSURED SAVINGS BANKS3 25 Negotiable order of withdrawal accounts 10,871 10,881 9,876 10,000 10,313 10,457 10,468 10,471 10,548 10,852 10,881 26 Savings deposits2 81,786 78,998 76,970 77,352 77,495 78,390 78,387 78,182 77,995 77,948 78,998 2/ Personal 78,695 75,972 74,077 74,376 74,569 75,049 75,153 74,978 74,737 74,664 75,972 28 Nonpersonal 3,091 3,026 2,893 2,976 2,926 3,341 3,234 3,204 3,258 3,284 3,026 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 3,867 2,738 3,167 3,103 3,022 2,871 2,928 2,886 2,839 2,778 2,738 30 92 to 182 days 17,345 12,587 14,328 14,129 13,808 13,773 13,525 13,261 13,131 12,926 12,587 31 183 days to 1 year 21,780 16,953 18,778 18,520 18,427 18,454 18,143 17,798 17,441 17,178 16,953 32 More than 1 year to 2 Vl years 18,442 16,215 16,433 16,155 15,972 16,250 16,200 16,161 16,124 15,995 16,215 33 More than 2Vi years 18,845 19,632 18,646 18,725 18,989 19,229 19,331 19,610 19,657 19,645 19,632 34 IRA/Keogh Plan accounts 21,713 19,255 19,969 19,861 19,855 19,920 19,802 19,766 19,601 19,382 19,255 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 Bank group, or type of customer May Julyr Aug.' Sept. Oct. DEBITS Seasonally adjusted Demand deposits 1 All insured banks 277,157.5 277,758.0 315,806.1 306,642.9 335,248.5 331,362.0 333,320.0 360,216.0 327,988.6 2 Major New York City banks 131,699.1 137,352.3 165,572.7 155,495.0 170,062.9 166,869.2 168,433.5 185,625.9 166,629.4 3 Other banks 145,458.4 140,405.7 150,233.5 151,147.9 165,185.6 164,492.8 164,886.5 174,590.1 161,359.2 4 Other checkable deposits4 3,349.0 3,645.5 3,788.1 3,284.7 3,620.9 3,377.0 3,440.1 3,499.3 3,313.0 5 Savings deposits (including MMDAs) 3,483.3 3,266.1 3,331.3 3,436.1 3,637.4 3,637.8 3,494.7 3,733.7 3,395.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 797.8 803.5 832.4 722.8 791.3 779.4 768.2 824.6 731.3 7 Major New York City banks 3,819.8 4,270.8 4,797.9 3,852.9 4,197.5 4,306.7 4,027.5 4,263.0 3,917.7 8 Other banks 464.9 447.9 435.9 393.7 431.1 425.7 420.5 443.9 397.5 9 Other checkable deposits4 16.5 16.2 14.4 11.2 12.3 11.4 11.6 11.7 11.0 10 Savings deposits (including MMDAs) 6.2 5.3 4.7 4.5 4.7 4.7 4.5 4.8 4.4 DEBITS Not seasonally adjusted Demand deposits3 11 All insured banks 277,290.5 277,715.4 315,808.2 306,746.1 345,368.7 333,304.0 342,912.1 347,886.2 336,343.9 12 Major New York City banks 131,784.7 137,307.2 165,595.0 154,606.6 176,874.8 168,018.4 174,674.7 179,869.7 172,675.6 13 Other banks 145,505.8 140,408.3 150,213.3 152,139.5 168,493.9 165,285.6 168,237.4 168,016.5 163,668.2 14 Other checkable deposits4 3,346.7 3,645.6 3,788.1 3,201.0 3,645.9 3,301.6 3,379.2 3,502.1 3,302.7 15 Savings deposits (including MMDAs) 3,483.0 3,267.7 3,329.0 3,445.0 3,758.1 3,648.1 3,532.3 3,539.5 3,331.9 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 798.2 803.4 832.5 738.2 818.3 779.0 803.4 798.6 749.4 17 Major New York City banks 3,825.9 4,274.3 4,803.5 3,948.9 4,412.6 4,280.6 4,307.8 4,196.6 4,059.2 18 Other banks 465.0 447.9 436.0 404.2 441.1 425.3 435.5 427.8 402.8 19 Other checkable deposits4 16.4 16.2 14.4 11.1 12.5 11.3 11.5 11.8 11.1 20 Savings deposits (including MMDAs) 6.2 5.3 4.7 4.5 4.9 4.8 4.6 4.6 4.3 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 • March 1994 1.24 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars, averages of Wednesday figures Jan. Feb. Mar. Apr. May Juner Julyr Aug/ Sept/ Oct/ Nov. Dec. Seasonally adjusted 1 Total loans, leases, and securities2 2,935.3 2,943.9 2,960.2 2,970.9 2,991.2 3,014.1 3,037.4 3,046.6 3,057.2 3,056.6 3,072.6 3,087.2 2 U.S. government securities 656.5 666.2 680.2 691.0 693.5 704.3 708.2 714.8 720.6 718.4 720.0 727.2 3 Other securities 174.5 176.4 179.0 181.0 181.2 179.6 181.5 182.4 182.6 180.7 180.9 181.9 4 Total loans and leases2 2,104.4 2,101.3 2,101.0 2,098.9 2,116.5 2,130.3 2,147.8 2,149.4 2,153.9 2,157.5 2,171.7 2,178.2 5 Commercial and industrial .... 598.0 596.7 593.1 587.5 589.9 590.9 590.2 589.6 586.2 585.7 585.4 584.2 6 Bankers acceptances held .. 7.3 8.4 8.5 8.5 9.0 8.8 9.2 9.6 8.8 9.5 9.0 8.8 7 Other commercial and industrial 590.7 588.3 584.6 579.0 580.9 582.1 581.0 580.0 577.4 576.2 576.5 575.4 8 U.S. addressees4......... 581.2 578.8 574.9 569.7 571.2 572.8 571.5 570.4 567.4 566.5 566.3 565.7 9 Non-U.S. addressees 9.6 9.5 9.7 9.3 9.7 9.4 9.6 9.6 9.9 9.7 10.2 9.7 10 Real estate 890.8 890.1 891.9 892.2 898.0 904.0 907.7 910.8 914.6 918.1 921.8 927.2 11 Individual 358.4 361.9 362.3 364.4 367.5 368.8 372.5 374.7 376.0 380.3 383.2 385.6 12 Security 63.5 62.8 64.2 62.3 68.6 71.4 81.6 79.9 82.7 79.5 87.0 86.0 13 Nonbank financial institutions 45.1 44.6 44.2 45.0 45.9 46.0 46.5 46.8 46.1 44.9 44.2 43.2 14 Agricultural 34.5 34.3 34.0 34.1 34.3 34.3 34.7 34.8 34.8 35.0 35.5 35.4 15 State and political subdivisions 24.2 23.8 23.6 23.1 23.0 22.8 22.8 22.7 22.4 22.2 21.8 21.6 16 Foreign banks 7.7 8.8 8.5 8.4 8.4 8.6 9.0 9.5 8.7 8.9 8.1 7.7 17 Foreign official institutions 2.9 3.2 3.2 3.2 3.1 3.2 3.2 3.1 3.4 3.5 3.3 3.3 18 Lease-financing receivables ... 30.4 30.6 30.6 30.7 30.9 31.3 31.6 31.7 31.8 32.1 32.5 32.8 19 All other loans 48.8 44.5 45.3 48.0 46.8 49.0 47.9 46.0 47.3 47.3 49.1 51.1 Not seasonally adjusted 20 Total loans, leases, and securities 2,937.4 2,946.7 2,963.9 2,972.5 2,986.2 3,013.9 3,025.6 3,038.3 3,054.0 3,055.8 3,079.9 3,096.8 21 U.S. government securities 656.9 669.8 685.9 692.8 692.5 702.0 703.5 713.1 718.3 716.0 723.2 725.8 22 Other securities 175.0 176.6 178.7 180.4 180.7 179.1 180.4 182.2 182.2 181.0 181.9 182.0 23 Total loans and leases2 2,105.5 2,100.3 2,099.3 2,099.3 2,113.0 2,132.8 2,141.8 2,142.9 2,153.5 2,158.8 2,174.8 2,189.0 24 Commercial and industrial 596.4 595.9 596.3 590.4 591.6 592.7 589.2 585.9 582.7 583.4 585.8 586.9 25 Bankers acceptances held3.. 7.4 8.8 8.6 8.3 8.9 8.6 8.9 9.3 8.6 9.3 9.3 9.2 26 Other commercial and industrial 589.0 587.1 587.7 582.1 582.7 584.1 580.3 576.6 574.0 574.1 576.5 577.8 27 U.S. addressees4 579.5 577.5 578.2 572.7 573.0 573.9 570.4 566.8 564.2 564.7 566.9 568.2 28 Non-U.S. add,.-ssees4 9.5 9.5 9.5 9.4 9.7 10.2 9.9 9.8 9.8 9.4 9.6 9.5 29 Real estate 890.5 888.3 889.3 891.1 898.0 904.3 908.0 911.5 915.5 919.1 923.3 928.5 30 Individual 362.5 361.9 359.8 361.7 365.7 367.0 370.2 374.1 377.6 380.7 384.1 390.4 31 Security 65.0 65.8 66.4 65.7 65.5 70.8 77.5 76.9 80.7 79.2 86.1 87.1 32 Nonbank financial institutions 45.3 44.5 43.9 44.4 45.3 46.6 46.2 46.6 45.4 44.5 44.5 45.1 33 Agricultural 33.6 32.9 32.7 33.3 34.0 34.8 35.6 35.9 36.2 36.0 35.6 35.2 34 State and political subdivisions 24.0 23.7 23.7 23.2 23.0 22.8 22.7 22.7 22.5 22.4 21.8 21.6 35 Foreign banks 7.8 8.6 8.2 8.1 8.2 8.4 9.1 9.2 8.8 9.2 8.5 8.2 36 Foreign official institutions.... 2.9 3.2 3.2 3.2 3.1 3.2 3.2 3.1 3.4 3.5 3.3 3.3 37 Lease-financing receivables ... 30.8 30.8 30.8 30.8 30.9 31.3 31.3 31.5 31.6 32.1 32.3 32.8 38 All other loans 46.6 44.6 45.0 47.5 47.6 51.0 48.8 45.4 49.1 48.8 49.6 49.9 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 1993 SSoouurrccee ooff ffuunnddss Jan. Feb. Mar. Apr. May June Julyr Aug/ Sept. Oct. Nov. Dec. Seasonally adjusted 11111 TTTTToooootttttaaaaalllll nnnnnooooonnnnndddddeeeeepppppooooosssssiiiiittttt fffffuuuuunnnnndddddsssss22222 311.6r 309.8r 320.2r 329.7r 325.1 335.9* 357.7 366.9 377.9* 382.0 372.7 371.6 22222 NNNNNeeeeettttt bbbbbaaaaalllllaaaaannnnnccccceeeeesssss ooooowwwwweeeeeddddd tttttooooo rrrrreeeeelllllaaaaattttteeeeeddddd fffffooooorrrrreeeeeiiiiigggggnnnnn oooooffffffffffiiiiiccccceeeeesssss33333.......... 73.8 72.5 77.8 87.5 81.9 85.0 100.0 114.1 118.8' 123.6 120.7 119.4 33333 BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss fffffrrrrrooooommmmm ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss iiiiinnnnn UUUUUnnnnniiiiittttteeeeeddddd SSSSStttttaaaaattttteeeeesssss44444 237.8r 237.3r 242.4r 242.2r 243.3 250.8r 257.7 252.8 259.1 258.4 251.9 252.1 44444 DDDDDooooommmmmeeeeessssstttttiiiiicccccaaaaallllllllllyyyyy ccccchhhhhaaaaarrrrrttttteeeeerrrrreeeeeddddd bbbbbaaaaannnnnkkkkksssss 157.lr 157.1r 161.9r 167.2r 166.2 173.9* 181.3 177.4 181.7r 183.5r 178.5 177.1 55555 FFFFFooooorrrrreeeeeiiiiigggggnnnnn-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaannnnnkkkkksssss 80.7 80.2 80.5 75.0 77.1 77.0 76.4 75.4 77.4 75.0 73.4 75.0 Not seasonally adjusted 66666 TTTTToooootttttaaaaalllll nnnnnooooonnnnndddddeeeeepppppooooosssssiiiiittttt fffffuuuuunnnnndddddsssss22222 310.5r 314.1r 325. lr 325.8r 329.8 334.9* 351.4 361.8 372.5r 384.6 378.9 371.7 77777 NNNNNeeeeettttt bbbbbaaaaalllllaaaaannnnnccccceeeeesssss ooooowwwwweeeeeddddd tttttooooo rrrrreeeeelllllaaaaattttteeeeeddddd fffffooooorrrrreeeeeiiiiigggggnnnnn oooooffffffffffiiiiiccccceeeeesssss33333.......... 76.4 74.4 78.5 84.6 84.0 83.1 96.7 110.4 116.4r 124.7 122.4 123.6 88888 DDDDDooooommmmmeeeeessssstttttiiiiicccccaaaaallllllllllyyyyy ccccchhhhhaaaaarrrrrttttteeeeerrrrreeeeeddddd bbbbbaaaaannnnnkkkkksssss -15.8 -10.6 -7.0 -9.4 -9.7 -15.3 -15.2 -13.6 -11.2 -5.1 -4.9 -2.8 99999 FFFFFooooorrrrreeeeeiiiiigggggnnnnn-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaannnnnkkkkksssss 92.3 84.9 85.5 94.0 93.7 98.4 112.0 124.0 127.7r 129.9 127.3 126.3 1111100000 BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss fffffrrrrrooooommmmm ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss iiiiinnnnn UUUUUnnnnniiiiittttteeeeeddddd SSSSStttttaaaaattttteeeeesssss44444 234.lr 239.7r 246.5r 241.3r 245.8 251.8r 254.6 251.4 256.1 259.9 256.5 248.2 1111111111 DDDDDooooommmmmeeeeessssstttttiiiiicccccaaaaallllllllllyyyyy ccccchhhhhaaaaarrrrrttttteeeeerrrrreeeeeddddd bbbbbaaaaannnnnkkkkksssss 154.0r 158.8r 164.8r 165.lr 167.8 173.6r 177.5 176.1 180.3r 184.8 183.7 176.0 1111122222 FFFFFeeeeedddddeeeeerrrrraaaaalllll fffffuuuuunnnnndddddsssss aaaaannnnnddddd ssssseeeeecccccuuuuurrrrriiiiitttttyyyyy RRRRRPPPPP bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss 150.4r 155.6r 161.4r 161.6r 164.0 169.8r 173.2 172.1 176.0 180.4* 178.9 171.4 1111133333 OOOOOttttthhhhheeeeerrrrr66666 3.6 3.2 3.3 3.5 3.8 3.8 4.3 4.0 4.4 4.5 4.7 4.6 1111144444 FFFFFooooorrrrreeeeeiiiiigggggnnnnn-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaannnnnkkkkksssss66666 80.0 80.9 81.8 76.2 78.0 78.2 77.1 75.3 75.7 75.0 72.8 72.2 MMMMMEEEEEMMMMMOOOOO GGGGGrrrrrooooossssssssss lllllaaaaarrrrrgggggeeeee tttttiiiiimmmmmeeeee dddddeeeeepppppooooosssssiiiiitttttsssss 1111155555 SSSSSeeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 359.9 358.4 355.7 355.0 356.3 352.6 344.6 339.7 335.5 335.5 336.4 340.3 1111166666 NNNNNooooottttt ssssseeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 358.0 358.0 356.5 354.2 357.9 354.1 344.3 340.8 335.9* 334.7* 336.3 339.2 UUUUU.....SSSSS..... TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy dddddeeeeemmmmmaaaaannnnnddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss 1111177777 SSSSSeeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 25.6 23.6 18.8 24.2 19.1 26.1 30.1 29.4 24.2 16.7 16.1 22.5 1111188888 NNNNNooooottttt ssssseeeeeaaaaasssssooooonnnnnaaaaallllllllllyyyyy aaaaadddddjjjjjuuuuusssssttttteeeeeddddd 33.1 29.5 17.4 20.3 20.3 26.5 25.6 23.8 28.6 17.1* 12.9 21.4 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 • March 1994 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures Millions of dollars 1993 AAccccoouunntt Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 ALL COMMERCIAL BANKING INSTITUTIONS2 Assets 1 Loans and securities 3,227,573 3,237,466 3,231,044 3,236,110 3,252,784 3,262,210 3,270,051 3,247,053 3,261,500 2 Investment securities 860,391 863,326 858,152 860,242 861,738 868,761 866,805 866,889 865,331 3 U.S. government securities 694,525 696,768 691,203 693,364 695,260 702,446 700,387 700,808 699,806 4 Other 165,866 166,557 166,949 166,879 166,479 166,315 166,418 166,082 165,526 5 Trading account assets 42,910 45,855 44,634 42,420 45,064 40,527 41,286 39,661 39,040 6 U.S. government securities 27,588 30,887 29,655 26,925 29,588 24,686 25,977 24,641 23,363 7 Other securities 2,670 2,724 2,308 2,204 2,145 2,119 1,991 2,036 2,114 8 Other trading account assets 12,652 12,245 12,670 13,291 13,332 13,722 13,318 12,984 13,563 9 Total loans 2,324,272 2,328,285 2,328,258 2,333,448 2,345,982 2,352,921 2,361,960 2,340,504 2,357,129 10 Interbank loans 154,333 157,763 158,886 155,286 161,337 170,118 168,086 155,428 161,799 11 Loans excluding interbank 2,169,939 2,170,522 2,169,372 2,178,162 2,184,645 2,182,803 2,193,875 2,185,075 2,195,330 12 Commercial and industrial 586,916 585,862 585,525 585,417 585,823 582,590 586,519 588,660 589,257 13 Real estate 920,411 923,670 921,663 921,804 927,812 929,760 931,041 924,916 928,513 14 Revolving home equity 74,211 74,088 73,992 73,781 73,636 73,493 73,472 73,344 73,208 15 Other 846,200 849,582 847,671 848,022 854,177 856,267 857,569 851,572 855,305 16 Individual 381,762 382,340 383,420 384,511 387,443 385,122 389,573 392,116 394,218 17 All other 280,850 278,650 278,764 286,431 283,566 285,331 286,742 279,384 283,343 18 Total cash assets 214,169 211,673 217,494 225,624 253,850 210,804 245,987 233,352 233,208 19 Balances with Federal Reserve Banks 27,964 31,293 29,534 35,037 29,103 26,473 31,841 33,917 37,646 20 Cash in vault 31,622 33,170 34,503 32,840 35,818 34,283 34,826 34,420 37,743 21 Demand balances at U.S. depository institutions .. 31,716 29,769 31,054 32,725 35,173 30,660 36,169 33,231 32,146 22 Cash items 84,005 79,331 83,591 85,340 114,057 79,512 102,814 92,254 85,608 23 Other cash assets 38,862 38,110 38,812 39,681 39,699 39,877 40,338 39,529 40,064 24 Other assets 280,367 281,917 273,132 271,457 281,469 278,518 280,052 277,830 278,229 25 Total assets 3,722,110 3,731,056 3,721,670 3,733,191 3,788,102 3,751,531 3,7%,090 3,758,235 3,772,936 Liabilities 26 Total deposits 2,534,573 2,526,820 2,527,772 2,527,958 2,582,052 2,547,254 2,599,383 2,547,626 2,550,880 27 Transaction accounts 821,447 813,115 819,518 821,162 871,154 825,988 886,236 846,304 852,224 28 Demand, U.S. government 3,319 3,173 2,915 5,123 5,771 3,025 28,434 4,161 4,706 29 Demand, depository institutions 40,376 38,652 40,661 41,647 47,491 39,080 47,577 43,015 40,097 30 Other demand and all checkable deposits 777,752 771,290 775,942 774,392 817,893 783,883 810,225 799,128 807,421 31 Savings deposits (excluding checkable) 781,547 784,448 780,166 775,823 780,404 786,659 780,276 772,409 772,507 32 Small time deposits 602,756 601,262 599,768 599,499 599,445 598,671 597,863 596,253 595,286 33 Time deposits over $100,000 328,823 327,995 328,320 331,474 331,049 335,937 335,009 332,660 330,863 34 Borrowings 507,734 520,333 507,260 522,472 523,204 516,289 512,444 529,732 538,053 35 Treasury tax and loan notes 6,381 9,368 5,871 7,026 15,853 1,347 2,439 21,319 34,657 36 Other 501,353 510,965 501,389 515,446 507,351 514,942 510,005 508,413 503,396 37 Other liabilities 381,148 383,687 387,169 385,933 384,098 385,108 383,474 382,326 383,758 38 Total UabUities 3,423,455 3,430,839 3,422,201 3,436,364 3,489,353 3,448,652 3,495,301 3,459,684 3,472,691 39 Residual (assets less liabilities)3 298,655 300,217 299,469 296,827 298,749 302,880 300,790 298,551 300,246 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 Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 29 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 Assets 4 4 4 4 4 5 5 4 4 4 4 4 5 5 5 5 5 5 5 5 6 6 6 6 0 1 2 3 7 3 4 4 5 6 8 9 0 1 2 5 6 7 8 9 0 1 2 3 L T O o o t T T I D C C B O t a h n a r o n e e a a a t v l O O U L I O a U t r h m s s l s n a e d a h h c o e t t . t . l t s a R a a C I A i n S h h h r S a a e n t n s n n i i . l e c e . s e r e m n l o n t g s o c d R O l h d r d r r e b a e m s g e g a a i s e l o m v a e a t t v o t o s s a n s b n e m h s t a r n v c h e i e w v e v s s s h x t a d a e u o k c c s c e s e e c i r e l d u o t a u l l u e t r s r r a t r l v a i h l a u s e r n t u c n r n n o i t s s l c i n i i d m n e m g c a t a e F t u t i g e i i n t l e e e e r n e a s s s a s n d n i s a g h c t s a t t e n c i o s t e i r o d m e n s s s a u U e t e t l i e s e n c c n . r u R u t S d e b r r . q e u a a i i s u s t t s d n e i t i s i e e k e r r t e s s y p i v t a s o e l si B to a r n y k s i nstitutions . 2 2 1 , , , 0 8 7 7 6 4 8 3 9 2 1 1 1 1 4 6 8 4 3 9 7 3 2 8 2 7 3 8 2 1 2 1 3 4 1 8 9 4 8 1 2 8 4 8 9 7 1 1 3 2 5 1 7 1 1 2 2 2 7 8 1 , , , , , , , , . , . , , , , , , , , , , , , , 1 2 2 1 8 1 9 9 5 9 5 2 4 7 6 6 6 5 5 4 2 7 2 0 6 1 2 5 3 5 1 2 8 8 8 2 5 1 6 4 2 7 9 0 4 8 2 0 5 1 8 3 1 3 7 0 9 8 5 2 0 2 1 6 0 8 9 9 4 3 4 6 2 2 1 , , , 8 0 7 4 8 6 8 3 2 9 1 1 1 1 7 4 8 7 4 4 3 0 3 2 7 3 7 8 1 1 3 1 4 3 1 8 8 8 4 8 4 5 1 2 4 2 0 6 8 3 6 2 2 9 0 2 2 5 7 6 9 , , , , , , , , , , , , , , , , , , , , , , , , 5 5 0 8 1 8 8 1 3 7 5 7 4 4 1 2 3 6 5 7 5 6 5 2 9 7 8 5 8 3 6 7 7 8 4 2 4 4 3 9 3 3 4 2 4 5 6 6 5 7 8 5 7 2 2 1 8 7 4 4 5 5 2 1 6 0 0 0 3 6 2 0 2 2 1 , , , 0 8 7 6 4 8 3 8 2 9 1 1 1 1 4 6 7 4 7 2 3 0 3 8 2 2 3 8 7 1 1 1 4 1 9 3 8 5 7 3 7 9 4 2 4 0 4 9 3 1 4 9 4 8 1 2 2 7 2 4 1 , , , , , , , , , , , , , , , , , , , , , , , , 7 9 6 7 4 2 3 5 4 0 6 0 4 4 0 7 5 9 0 6 8 4 7 6 7 9 5 8 2 1 9 0 7 8 6 1 3 2 0 6 8 8 5 7 0 6 4 6 7 2 5 8 7 4 4 8 9 1 9 6 4 0 7 6 6 6 9 0 3 8 7 9 2 2 1 , , , 8 0 7 6 4 8 8 3 2 2 9 1 1 1 7 4 8 4 7 0 3 3 2 3 3 8 8 0 7 2 3 1 1 4 3 1 7 0 6 2 3 0 2 2 3 8 6 2 2 4 1 0 4 2 4 3 4 3 1 8 8 , , , , , , , , , , , , , , , , , , , , , , , , 9 2 2 7 7 2 4 9 3 2 5 2 8 9 1 4 5 0 8 4 3 8 5 6 1 0 9 8 9 9 2 1 9 3 2 1 0 6 0 6 7 2 8 3 8 6 3 8 1 1 5 1 1 1 5 1 3 6 0 7 3 3 4 5 6 7 0 7 4 4 4 0 2 2 1 , , , 0 8 7 6 4 8 9 8 3 2 2 1 1 1 1 6 9 8 4 7 0 3 3 2 3 3 2 8 8 2 2 2 1 1 1 4 3 8 4 2 3 5 2 2 7 9 3 9 3 5 5 7 0 8 3 8 3 1 3 9 8 4 , , , , , , , , , , , , , , , , , , , , , , , , 4 4 1 6 0 0 3 0 7 9 5 4 6 6 7 4 6 1 5 3 5 4 8 1 6 9 4 6 5 3 7 6 4 4 4 8 8 9 7 8 3 9 0 6 9 1 4 7 3 7 5 2 1 6 3 4 3 4 7 8 0 8 0 2 2 2 5 6 7 3 7 9 2 2 1 , , , 0 8 7 6 4 8 3 8 2 9 1 1 1 1 6 9 8 4 7 2 7 4 0 3 8 2 2 3 2 8 1 1 4 1 4 8 8 4 1 3 7 7 0 9 3 2 9 1 5 4 4 5 0 2 9 3 3 4 8 3 5 , , , , , , , , , , , , , , , , , , , , , , , , 2 4 8 2 1 5 0 8 2 1 4 6 2 1 7 9 6 7 7 2 2 9 9 4 6 0 9 9 5 2 5 5 5 1 8 4 4 2 5 7 2 5 5 9 5 2 3 % 5 7 3 8 9 7 8 4 0 9 6 6 4 2 4 2 2 2 9 3 2 8 8 2 2 1 , , , 0 9 7 6 4 8 8 3 2 2 9 1 1 1 1 7 7 0 3 1 8 4 4 2 3 3 8 2 8 3 2 2 1 1 0 4 4 8 3 6 4 3 0 5 5 1 4 1 4 4 0 9 1 3 9 1 8 0 3 7 1 2 , , , , , , , , , , , , , , , , , , , , , , , , 4 4 4 8 9 9 2 1 3 7 8 2 3 8 5 7 9 3 5 8 2 2 1 1 8 5 7 7 9 7 1 6 4 7 8 9 6 8 7 1 7 2 6 8 4 3 1 3 1 1 7 9 7 2 8 9 2 5 7 1 0 6 3 4 5 4 1 2 6 9 9 9 2 2 1 , , , 0 7 8 6 4 8 8 3 9 2 2 1 1 1 5 8 2 7 7 4 0 3 3 7 9 3 3 8 2 0 1 1 3 3 4 1 8 2 5 4 2 3 2 8 9 6 6 1 4 9 9 1 2 2 8 3 1 3 3 8 1 , , , , , , , , , , , , , , , , , , , , , , , , 8 6 4 8 6 0 3 1 3 1 9 1 3 8 7 4 7 3 1 1 3 1 9 4 4 8 2 6 5 3 4 5 0 8 3 8 2 1 9 7 9 7 1 4 5 1 5 0 1 1 3 1 5 6 4 8 5 4 9 2 8 3 4 0 2 6 2 9 9 9 8 8 2 2 1 , , , 0 8 7 6 4 8 8 3 2 2 9 1 1 1 6 8 2 7 8 3 4 3 0 8 9 1 3 3 3 8 1 2 1 4 3 1 8 2 5 3 2 3 3 5 0 9 7 0 3 3 4 7 7 8 5 3 3 0 3 8 3 , , , , , , , , . , , , , . , , , , , , , , , , 3 2 3 2 9 1 9 6 1 4 5 0 0 0 5 3 2 7 0 7 4 2 4 0 6 6 0 4 0 6 1 5 4 1 3 6 4 4 0 4 1 0 5 5 7 0 9 % 2 3 6 7 8 3 4 1 1 6 1 6 7 1 3 0 8 6 8 0 9 1 2 64 Total assets 3,247,458 3,254,411 3,241,595 3,249,708 3,305,136 3,261,274 3,305,811 3,267,889 3,275,494 Liabilities 65 Total deposits 2,392,402 2,385,657 2,385,588 2,383,394 2,434,800 2,397,536 2,447,879 2,395,846 2,398,058 66 Transaction accounts 808,597 801,599 808,078 810,473 858,913 815,229 874,405 834,926 839,798 67 Demand, U.S. government 3,318 3,173 2,915 5,122 5,769 3,024 28,432 4,161 4,705 68 Demand, depository institutions 37,794 36,152 37,997 39,124 44,715 36,607 44,935 40,271 37,336 69 Other demand and all checkable deposits 767,485 762,274 767,166 766,227 808,430 775,598 801,038 790,495 797,757 70 Savings deposits (excluding checkable) 777,112 780,026 775,828 771,468 776,049 782,219 775,906 768,055 768,082 71 Small time deposits 600,517 599,032 597,544 597,267 597,212 5%,443 595,617 594,008 593,032 72 Time deposits over $100,000 206,176 205,001 204,138 204,186 202,626 203,646 201,951 198,858 197,147 73 Borrowings 404,644 419,144 407,073 423,761 421,870 412,417 409,612 429,652 433,063 74 Treasury tax and loan notes 6,381 9,368 5,871 7,026 15,853 1,347 2,439 21,319 34,657 7 7 5 6 Ot O he t r h e l r ia bilities 3 1 9 5 8 4 , , 2 7 6 5 3 8 4 1 0 5 9 2 , , 7 3 7 9 6 5 4 1 0 5 1 2 , . 2 4 0 6 2 7 4 1 1 4 6 8 , , 7 7 3 2 5 6 4 1 0 5 6 2 , , 0 7 1 1 7 9 4 1 1 5 1 1 , , 0 4 7 4 0 3 4 1 0 5 7 0 , , 1 5 7 3 3 3 4 1 0 4 8 6 , , 3 8 3 4 3 0 3 1 9 4 8 7 , , 4 1 0 3 6 0 77 Total liabilities 2,951,804 2,957,196 2,945,127 2,955,882 3,009,389 2,961,395 3,008,023 2,972,339 2,978,250 78 Residual (assets less liabilities)3 295,654 297,215 296.468 293,826 295,748 299,879 297,788 295,550 297,244 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 sill 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 • March 1994 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1993 AAccccoouunntt Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 ASSETS 1 Cash and balances due from depository institutions 107,965 107,645 112,824 118,438 142,070 107,158 136,856 124,500 124,063 2 U.S. Treasury and government securities 301,587 305,802 299,371 298,788 302,649 302,048 299,968 299,312 2%,064 3 Trading account 24,577 27,724 26,038 24,175 26,278 22,130 23,385 22,280 20,450 4 Investment account 277,011 278,079 273,332 274,612 276,372 279,919 276,584 277,032 275,614 5 Mortgage-backed securities' 86,337 86,070 84,588 87,603 88,537 8888,,662255 8877,,002222 8877,,117700 87,863 All others, by maturity b One year or less 48,567 50,294 50,175 48,310 48,834 51,085 51,994 51,996 52,000 7 One year through five years 72,986 72,970 71,273 71,725 71,932 72,856 71,928 71,971 70,925 8 More than five years 69,121 68,745 67,296 66,975 67,069 67,353 65,640 65,895 64,826 9 Other securities 56,372 56,506 56,141 56,599 56,490 56,303 55,951 56,017 55,570 10 Trading account 2,410 2,463 2,098 1,994 1,935 1,911 1,782 1,828 1,883 11 Investment account 53,962 54,042 54,043 54,604 54,555 54,392 54,169 54,189 53,687 12 State and political subdivisions, by maturity 20,038 20,122 20,151 20,222 20,172 20,132 20,183 20,369 20,517 13 One year or less 3,842 3,885 3,808 3,857 4,062 3,945 4,003 4,034 4,054 14 More than one year 16,196 16,236 16,343 16,366 16,110 16,188 16,180 16,335 16,463 15 Other bonds, corporate stocks, and securities 33,924 33,921 33,892 34,382 34,384 34,260 33,986 33,821 33,170 16 Other trading account assets 12,541 12,134 12,560 13,179 13,221 13,611 13,206 12,873 13,453 17 Federal funds sold2 89,954 92,479 89,316 93,384 93,857 97,197 102,728 80,864 86,051 18 To commercial banks in the United States 50,596 53,317 51,766 52,419 56,011 57,352 63,290 49,169 53,240 19 To nonbank brokers and dealers 34,748 34,962 33,094 37,038 33,432 34,965 34,720 28,657 29,504 20 To others 4,609 4,200 4,456 3,927 4,414 4,881 4,717 3,039 3,306 21 Other loans and leases, gross 1,002,310 1,002,350 1,003,406 1,003,906 1,015,053 1,008,577 1,016,635 1,017,324 1,019,765 22 Commercial and industrial 274,545 273,243 273,190 272,387 272,904 270,666 272,724 274,021 273,325 23 Bankers acceptances and commercial paper 3,411 3,459 3,395 3,387 3,492 3,122 2,984 2,969 3,102 24 All other 271,133 269,783 269,795 269,000 269,411 267,544 269,741 271,053 270,223 25 U.S. addressees 269,710 268,370 268,347 267,555 267,975 266,092 268,295 269,538 268,727 26 Non-U.S. addressees 1,423 1,413 1,448 1,445 1,437 1,451 1,446 1,515 1,4% 27 Real estate loans 405,344 407,772 406,132 405,772 410,662 412,737 412,583 407,976 409,646 28 Revolving, home equity 43,359 43,275 43,220 43,039 42,950 42,809 42,796 42,685 42,640 29 All other 361,985 364,497 362,912 362,733 367,713 369,928 369,787 365,291 367,006 30 To individuals for personal expenditures 195,242 195,482 196,316 197,203 198,793 197,529 200,218 202,293 203,956 31 To financial institutions 38,959 38,659 39,147 38,948 41,338 40,774 41,950 43,081 42,803 32 Commercial banks in the United States 13,533 13,621 14,563 14,685 15,518 14,9% 16,737 18,208 17,976 33 Banks in foreign countries 2,253 2,255 2,588 2,679 2,964 2,922 2,524 3,246 2,373 34 Nonbank financial institutions 23,173 22,782 21,996 21,584 22,856 22,856 22,689 21,627 22,453 35 For purchasing and carrying securities 18,868 18,157 17,713 19,972 18,204 18,060 18,519 19,537 19,109 36 To finance agricultural production 5,709 5,702 5,683 5,728 5,624 5,664 5,628 5,661 5,705 37 To states and political subdivisions 12,910 12,775 12,686 12,629 12,513 12,336 12,353 12,497 12,308 38 To foreign governments and official institutions 1,112 1,254 1,114 1,118 1,156 1,113 1,158 1,141 1,381 39 All other loans 24,048 23,743 25,771 24,455 28,070 23,900 25,626 25,176 25,580 40 Lease-financing receivables 25,575 25,563 25,653 25,693 25,789 25,797 25,876 25,940 25,954 41 LESS: Unearned income 1,962 1,961 1,962 1,965 1,947 1,930 1,916 1,912 1,906 42 Loan and lease reserve5 35,482 35,517 35,487 35,415 35,420 35,570 35,563 35,363 34,881 43 Other loans and leases, net 964,867 964,872 965,957 966,527 977,686 971,077 979,155 980,049 982,978 44 Other assets 175,264 175,736 169,384 165,942 170,929 170,784 169,532 168,767 168,239 45 Total assets 1,708,549 1,715,175 1,705,551 1,712,856 1,756,902 1,718,180 1,757,396 1,722,382 1,726,417 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 AAccccoouunntt Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 LIABILITIES 46 Deposits 1,122,944 1,119,646 1,122,091 1,117,154 1,156,471 1,125,695 1,169,536 1,125,167 1,127,040 47 Demand deposits 293,883 292,685 300,400 300,205 332,852 297,628 346,148 312,072 315,836 48 Individuals, partnerships, and corporations 243,294 242,238 248,019 247,563 270,947 246,398 268,224 254,500 260,055 49 Other holders 50,590 50,447 52,381 52,642 61,905 51,230 77,925 57,572 55,781 50 States and political subdivisions 9,442 8,915 8,863 9,714 10,963 8,524 10,152 9,843 10,234 51 U.S. government 1,944 1,932 1,664 3,284 3,711 1,847 21,878 2,456 2,955 5? Depository institutions in the United States 23,266 22,018 23,330 23,720 29,458 22,568 29,366 23,481 22,908 53 Banks in foreign countries 5,130 5,379 4,974 5,264 5,745 5,144 6,258 7,815 5,589 54 Foreign governments and official institutions 637 1,088 648 713 716 663 720 617 853 55 Certified and officers' checks 10,171 11,116 12,903 9,947 11,312 12,484 9,550 13,360 13,242 56 Transaction balances other than demand deposits 123,845 122,161 121,625 121,064 125,035 124,737 126,518 126,749 126,438 57 Nontransaction balances 705,216 704,800 700,066 695,885 698,584 703,330 6%,870 686,346 684,766 58 Individuals, partnerships, and corporations 683,876 683,275 678,561 674,314 677,632 682,298 676,036 665,775 664,819 59 Other holders 21,340 21,525 21,505 21,571 20,952 21,033 20,833 20,572 19,947 60 States and political subdivisions 17,319 17,476 17,386 17,434 16,911 16,895 16,789 16,540 16,198 61 U.S. government 2,224 2,267 2,321 2,334 2,230 2,223 2,134 2,157 1,845 62 Depository institutions in the United States 1,491 1,482 1,498 1,506 1,515 1,618 1,608 1,573 1,603 63 Foreign governments, official institutions, and banks .... 306 300 300 298 296 297 302 302 301 64 Liabilities for borrowed money5 305,940 318,334 306,721 323,032 322,426 314,773 311,231 326,307 328,421 65 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 125 0 0 66 Treasury tax and loan notes 5,929 8,384 5,059 6,343 14,076 72 1,645 18,535 29,558 67 Other liabilities for borrowed money 300,011 309,950 301,662 316,690 308,350 314,701 309,462 307,772 298,863 68 Other liabilities (including subordinated notes and debentures) 123,686 120,847 120,948 117,677 121,472 119,949 119,368 115,489 115,658 69 Total liabilities 1,552,570 1,558,827 1,549,761 1,557,864 1,600,369 1,560,417 1,600,136 1,566,963 1,571,119 70 Residual (total assets less total liabilities)7 155,979 156,348 155,790 154,992 156,533 157,762 157,260 155,419 155,298 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. 1,398,635 1,402,332 1,394,463 1,398,751 1,409,742 1,405,390 1,408,460 1,399,014 1,399,686 77 Time deposits in amounts of $100,000 or more 98,661 97,637 96,934 97,006 95,827 96,780 95,341 92,430 90,968 73 Loans sold outright to affiliates 812 805 804 849 850 849 846 819 795 74 Commercial and industrial 394 388 387 3% 391 391 388 395 391 75 Other 418 417 417 453 459 458 458 424 404 76 Foreign branch credit extended to U.S. residents 21,848 21,976 21,886 21,935 21,347 21,847 21,673 21,505 21,804 77 Net owed to related institutions abroad -10,839 -12,518 -7,533 -5,275 -5,742 -6,885 -2,746 -6,446 -5,178 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 • March 1994 1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1993 AAccccoouunntt Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 ASSETS 1 Cash and balances due from depository institutions 17,415 16,879 16,811 1177,,006655 1166,,998833 1166,,991199 1177,,006666 1166,,885500 1177,,554444 2 U.S. Treasury and government agency securities 35,776 35,175 36,427 35,339 36,009 37,924 37,182 37,181 38,062 3 Other securities 8,494 8,591 8,738 8,266 8,229 8,293 8,306 8,147 7,916 4 Federal funds sold1 24,640 25,281 25,523 27,847 25,456 32,268 28,968 29,323 31,712 5 To commercial banks in the United States ... 5,728 5,961 6,808 6,389 6,334 7,967 5,678 6,728 8,717 6 To others 18,913 19,321 18,715 21,459 19,123 24,301 23,291 22,595 22,994 7 Other loans and leases, gross 158,164 157,667 158,820 158,959 157,991 155,960 157,373 158,002 160,008 8 Commercial and industrial 95,363 95,355 95,407 9955,,339933 9955,,441188 9944,,774400 9955,,220011 9955,,338888 9966,,001111 9 Bankers acceptances and commercial paper 2,761 2,618 2,528 2,826 2,940 2,870 2,975 3,222 3,134 10 All other 92,602 92,737 92,879 92,567 92,477 91,871 92,226 92,165 92,877 11 U.S. addressees 89,3% 89,413 89,596 89,317 89,267 88,701 89,048 88,950 89,695 12 Non-U.S. addressees 3,206 3,325 3,283 3,250 3,211 3,170 3,178 3,215 3,182 13 Loans secured by real estate 31,083 31,065 31,013 30,962 30,929 30,906 30,538 29,802 29,686 14 To financial institutions 22,571 22,660 22,722 22,499 22,286 22,263 22,465 22,581 23,113 15 Commercial banks in the ,United States.. 5,383 5,493 5,415 5,450 4,975 4,975 5,007 5,249 5,363 16 Banks in foreign countries 2,025 1,958 1,955 2,021 1,865 1,845 1,793 1,694 1,644 17 Nonbank financial institutions 15,163 15,208 15,353 15,028 15,446 15,442 15,665 15,637 16,106 18 For purchasing and carrying securities 5,154 4,711 5,709 66,,113322 55,,443322 44,,114488 55,,116633 66,,006666 66,,778888 19 To foreign governments and official institutions 471 469 495 474 437 443 489 462 468 20 All other 3,521 3,407 3,474 3,499 3,489 3,460 3,517 3,705 3,943 21 Other assets (claims on nonrelated parties) .. 32,187 32,612 31,647 32,334 31,973 33,003 31,062 31,070 30,093 22 Total assets3 300,675 301,910 303,905 305,879 305,591 310,778 309,949 309,655 314,422 LIABILITIES 23 Deposits or credit balances owed to other than directly-related institutions 92,187 92,173 92,749 94,370 95,646 97,459 98,784 98,969 99,470 24 Demand deposits 5,163 4,611 4,546 44,,220077 44,,992244 44,,223399 44,,771133 44,,444422 55,,112255 25 Individuals, partnerships, and corporations 3,745 3,564 3,437 3,352 3,485 3,324 3,448 3,204 3,963 26 Other 1,418 1,047 1,110 855 1,439 915 1,265 1,239 1,162 27 Nontransaction accounts 87,025 87,562 88,203 9900,,116633 9900,,772222 9933,,222200 9944,,007711 9944,,552266 9944,,334455 28 Individuals, partnerships, and corporations 58,633 58,858 59,755 62,383 62,968 64,633 65,401 65,595 65,181 29 Other 28,391 28,703 28,448 2277,,778800 2277,,775544 2288,,558877 2288,,667700 2288,,993322 2299,,116644 30 Borrowings from other than directlyrelated institutions 78,087 76,509 75,561 75,276 76,895 79,281 77,100 75,139 78,684 31 Federal funds purchased 40,031 37,427 39,571 3377,,557799 3388,,777722 4400,,223388 4411,,222288 3399,,225555 4433,,117799 32 From commercial banks in the United States 11,776 9,739 14,427 8,946 11,628 12,238 14,415 10,177 14,121 33 From others 28,255 27,688 25,144 28,633 27,144 28,000 26,812 29,078 29,058 34 Other liabilities for borrowed money 38,056 39,082 35,990 3377,,669966 3388,,112233 3399,,004433 3355,,887733 3355,,888844 3355,,550055 35 To commercial banks in the United States 5,022 5,804 5,517 6,052 5,535 5,715 6,171 6,012 6,003 36 To others 33,035 33,278 30,473 31,645 32,589 33,327 29,702 29,873 29,502 37 Other liabilities to nonrelated parties 28,464 29,039 29,305 28,769 28,710 28,662 27,084 27,293 27,470 38 Total liabilities6 300,675 301,910 303,905 305,879 305,591 310,778 309,949 309,655 314,422 MEMO 39 Total loans (gross) and securities, adjusted7.. 215,963 215,261 217,285 218,573 216,376 221,502 221,145 220,676 223,618 40 Net owed to related institutions abroad 77,937 78,485 80,353 81,395 75,390 78,965 76,990 79,172 79,711 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 June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 458,464 525,831 562,656 531,724 549,433 544,107 539,149 545,527 541,285 550,463 FFiinnaanncciiaall ccoommppaanniieess11 DDeeaalleerr--ppllaacceedd ppaappeerr 22 TToottaall 159,777 183,622 214,706 213,823 228,260 221,834 210,224 216,245 215,077 222,981 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. DDiirreeccttllyy ppllaacceedd ppaappeerr44 44 TToottaall 194,931 210,930 200,036 183,379 172,813 171,479 170,192 172,093 169,431 170,965 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 66 NNoonnffiinnaanncciiaall ccoommppaanniieess55 103,756 131,279 147,914 134,522 148,360 150,794 158,733 157,189 156,777 156,517 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 66,631 62,972 54,771 43,770 38,194r 34,149 33,120 32,572 33,041 33,069 31,997 By holder 8 Accepting banks 9,086 9,433 9,017 11,017 10,555r 11,568 11,422 12,416 12,522 12,332 12,289 9 Own bills 8,022 8,510 7,930 9,347 9,097r 10,236 10,140 10,709 10,679 10,886 10,667 10 Bills bought from other banks 1,064 924 1,087 1,670 1,458 1,333 1,282 1,707 1,843 1,446 1,622 Federal Reserve Banks' 11 Foreign correspondents 1,493 1,066 918 1,739 1,276 613 582 635 637 582 650 12 Others 56,052 52,473 44,836 31,014 26,364 21,967 21,116 19,521 19,882 20,155 19,058 By basis 13 Imports into United States 14,984 15,651 13,095 12,843 12,209"^ 10,066 10,149 10,422 10,773 10,810 10,368 14 Exports from United States 14,410 13,683 12,703 10,351 8,0% 7,650 7,673 7,534 7,460 7,101 7,054 15 All other 37,237 33,638 28,973 20,577 17,890"^ 16,433 15,299 14,616 14,808 15,158 14,575 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 Av r e a r t a e g e Period Av r e a r t a e g e Period 10.00 1991 8.46 1992—Jan. ... 6.50 1993— 9.50 1992 6.25 Feb. .. 6.50 Feb. .. 9.00 1993 6.00 Mar. .. 6.50 8.50 Apr. .. 6.50 8.00 1991- 9.52 May ... 6.50 May .. 7.50 Feb. 9.05 June .. 6.50 6.50 Mar. 9.00 July ... 6.02 July ... Apr. 9.00 Aug. .. 6.00 Aug. .. 6.00 May , 8.50 Sept. .. 6.00 Sept. . June 8.50 Oct. ... 6.00 Oct. .. July , 8.50 Nov. .. 6.00 Nov. . Aug. 8.50 Dec. .. 6.00 Dec. .. Sept. 8.20 Oct. . 8.00 1994— Jan. ... Nov. 7.58 Dec. 7.21 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 NonfinancialS tatistics • March 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 IItteemm 11999911 11999922 11999933 Sept. Oct. Nov. Dec. Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 MONEY MARKET INSTRUMENTS 1 Federal funds1'2'3 5.69 3.52 3.02 3.09 2.99 3.02 2.96 3.09 2.92 2.94 2.99 2.99 2 Discount window borrowing2'4 5.45 3.25 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Commercial paper•3'5,6 3 1-month 5.89 3.71 3.17 3.14 3.14 3.15 3.35 3.27 3.41 3.34 3.31 3.35 4 3-month 5.87 3.75 3.22 3.16 3.26 3.40 3.36 3.44 3.40 3.34 3.30 3.32 5 6-month 5.85 3.80 3.30 3.25 3.27 3.43 3.40 3.46 3.42 3.38 3.36 3.38 Finance paper, directly placed3,5,7 6 1-month 5.73 3.62 3.12 3.07 3.08 3.08 3.21 3.14 3.26 3.20 3.18 3.20 7 3-month 5.71 3.65 3.16 3.09 3.16 3.25 3.19 3.26 3.21 3.16 3.13 3.18 8 6-month 5.60 3.63 3.15 3.11 3.13 3.19 3.18 3.21 3.19 3.18 3.17 3.18 Bankers acceptances3'5'8 9 3-month 5.70 3.62 3.13 3.07 3.19 3.29 3.23 3.30 3.26 3.20 3.18 3.21 10 6-month 5.67 3.67 3.21 3.17 3.19 3.32 3.30 3.34 3.30 3.28 3.27 3.29 Certificates of deposit, secondary marker 11 1-month 5.82 3.64 3.11 3.09 3.09 3.11 3.26 3.34 3.33 3.21 3.18 3.22 12 3-month 5.83 3.68 3.17 3.12 3.24 3.35 3.26 3.35 3.31 3.23 3.20 3.24 13 6-month 5.91 3.76 3.28 3.24 3.25 3.39 3.35 3.40 3.37 3.35 3.34 3.33 14 Eurodollar deposits, 3-month3'10 5.86 3.70 3.18 3.08 3.26 3.36 3.26 3.38 3.33 3.21 3.17 3.23 U.S. Treasury bills Secondary market '5 15 3-month 5.38 3.43 3.00 2.95 3.02 3.10 3.06 3.12 3.07 3.04 3.06 3.02 16 6-month 5.44 3.54 3.12 3.06 3.12 3.26 3.23 3.27 3.25 3.24 3.22 3.21 17 1-year 5.52 3.71 3.29 3.22 3.25 3.42 3.45 3.46 3.44 3.47 3.45 3.45 Auction average • • 18 3-month 5.42 3.45 3.02 2.96 3.04 3.12 3.08 3.12 3.11 3.06 3.06 3.06 19 6-month 5.49 3.57 3.14 3.06 3.13 3.27 3.25 3.26 3.27 3.26 3.25 3.21 20 I-year 5.54 3.75 3.33 3.27 3.25 3.43 3.47 n.a. n.a. 3.47 n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 5.86 3.89 3.43 3.36 3.39 3.58 3.61 3.62 3.60 3.61 3.60 3.61 22 2-year 6.49 4.77 4.05 3.85 3.87 4.16 4.21 4.21 4.19 4.23 4.21 4.22 23 3-year 6.82 5.30 4.44 4.17 4.18 4.50 4.54 4.54 4.51 4.57 4.54 4.53 24 5-year 7.37 6.19 5.14 4.73 4.71 5.06 5.15 5.14 5.10 5.18 5.16 5.14 25 7-year 7.68 6.63 5.54 5.08 5.05 5.45 5.48 5.51 5.42 5.53 5.50 5.47 26 10-year 7.86 7.01 5.87 5.36 5.33 5.72 5.77 5.80 5.71 5.82 5.79 5.77 27 20-year n.a. n.a. 6.29 n.a. 6.07 6.38 6.40 6.42 6.31 6.45 6.41 6.41 28 30-year 8.14 7.67 6.59 6.00 5.94 6.21 6.25 6.26 6.17 6.28 6.27 6.28 Composite 29 More than 10 years (long-term) 8.16 7.52 6.45 5.94 5.90 6.25 6.27 6.29 6.19 6.31 6.28 6.27 STATE AND LOCAL NOTES AND BONDS Moody's series13 30 Aaa 6.56 6.09 n.a. 5.25 5.13 5.10 n.a. 5.17 5.19 5.18 5.18 5.18 31 Baa 6.99 6.48 n.a. 5.76 5.63 5.61 n.a. 5.68 5.70 5.68 5.68 5.68 32 Bond Buyer series14 6.92 6.44 5.60 5.29 5.25 5.47 5.35 5.46 5.33 5.36 5.34 5.28 CORPORATE BONDS 33 Seasoned issues, all industries15 9.23 8.55 7.54 6.98 6.97 7.25 7.26 7.28 7.19 7.30 7.28 7.28 Rating group 34 Aaa 8.77 8.14 7.22 6.66 6.67 6.93 6.93 6.95 6.86 6.97 6.95 6.94 35 Aa 9.05 8.46 7.40 6.85 6.87 7.12 7.12 7.13 7.04 7.15 7.15 7.15 36 A 9.30 8.62 7.58 7.05 7.04 7.29 7.31 7.32 7.23 7.35 7.33 7.33 37 Baa 9.80 8.98 7.93 7.34 7.31 7.66 7.69 7.70 7.61 7.72 7.70 7.71 38 A-rated, recently offered utility bonds16 9.32 8.52 7.46 6.94 6.91 7.25 7.28 7.24 7.24 7.33 7.26 7.34 MEMO Dividend-price ratio17 39 Preferred stocks 8.17 7.46 n.a. 6.70 6.71 6.87 7.01 6.96 7.04 7.07 7.07 6.91 40 Common stocks 3.24 2.99 n.a. 2.73 2.72 2.72 2.72 2.73 2.71 2.74 2.74 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 11999911 11999922 11999933 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 206.35 229.00 249.71 244.72 246.02 247.16 247.85 251.93 254.86 257.53 255.93 257.73 2 Industrial 258.16 284.26 300.10 292.19 297.83 298.78 295.34 298.83 300.92 306.61 310.84 313.22 3 Transportation 173.97 201.02 242.68 237.97 237.80 234.30 238.30 250.82 247.74 254.04 262.% 268.11 4 Utility 92.64 99.48 114.55 113.78 111.21 113.27 116.27 118.72 122.32 120.49 115.08 114.97 5 Finance 150.84 179.29 216.55 216.02 209.40 209.75 218.89 224.% 229.35 228.18 214.08 216.00 6 Standard & Poor's Corporation (1941-43 = 10)' 376.20 415.75 451.63 443.08 445.25 448.06 447.29 454.13 459.24 463.90 462.89 465.95 7 American Stock Exchange (Aug. 31, 1973 = 50? 360.32 391.28 438.77 418.54 429.72 436.13 434.99 444.75 454.91 472.73 472.41 465.95 Volume of trading (thousands of shares) 8 New York Stock Exchange 179,411 202,558 263,374 279,778 255,843 250,230 247,574 247,324 261,770 280,503 277,886 259,457 9 American Stock Exchange 12,486 14,171 n.a. 15,521 20,433 17,753 17,744 19,352 18,889 21,279 18,436 17,461 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 36,660 43,990 60,310 47,420 48,630 49,550 49,080 52,760 53,700 56,690 59,760 60,310 Free credit balances at brokers4 11 Margin accounts 8,290 8,970 12,360 9,805 9,560 9,820 9,585 9,480 10,030 10,270 10,940 12,360 12 Cash accounts 19,255 22,510 27,715 21,450 21,610 22,625 21,475 21,915 23,170 22,450 23,560 27,715 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 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance on securities other than options are the difference between the market value (100 companies. With this change the index includes 400 industrial stocks (formerly percent) and the maximum loan value of collateral as prescribed by the Board. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, financial. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 2. On July 5,1983, the American Stock Exchange rebased its index, effectively 1971. cutting previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in 3. Since July 1983, under the revised Regulation T, margin credit at broker- Regulation T the initial margin required for writing options on securities, setting dealers has included credit extended against stocks, convertible bonds, stocks it at 30 percent of the current market value of the stock underlying the option. On acquired through 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 Nonfinancial Statistics • March 1994 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1993 11999911 11999922 11999933 July Aug. Sept. Oct. Nov. Dec. U.S. budget1 1 Receipts, total 1,054,264 1,090,453 1,153,147 80,626 86,734 127,469 78,668 83,107 125,416 2 On-budget 760,380 788,027 841,213 57,139 62,053 98,609 55,864 58,700 99,722 3 Off-budget 293,885 302,426 311,934 23,487 24,681 28,860 22,804 24,407 25,694 4 Outlays, total 1,323,785 1,380,794 1,407,831 120,204 109,812 118,904 124,090 121,488 133,667 5 On-budget 1,082,098 1,128,455 1,141,819 96,238 84,946 90,774 100,568 96,724 121,985 6 Off-budget 241,687 252,339 266,012 23,965 24,867 28,130 23,523 24,764 11,682 7 Surplus or deficit (-), total -269,521 -290,340 -254,684 -39,577 -23,078 8,565 -45,422 -38,381 -8,252 8 On-budget -321,719 -340,428 -300,605 -39,099 -22,893 7,835 -44,704 -38,024 -22,263 9 Off-budget 52,198 50,087 45,922 -478 -186 730 -719 -357 14,012 Source of financing (total) 10 Borrowing from the public 276,802 310,918 248,619 1,055 54,301 -9,346 4,255 71,028 13,995 11 Operating cash (decrease, or increase (-)) ... -1,329 -17,305 6,283 32,447 -12,652 -11,713 33,646 -13,450 -17,413 12 Other 2 -5,952 -3,273 -218 6,075 -18,571 12,494 7,521 -19,197 11,670 MEMO 13 Treasury operating balance (level, end of period) 41,484 58,789 52,506 28,141 40,793 52,506 18,860 32,310 49,723 14 Federal Reserve Banks 7,928 24,586 17,289 5,818 7,975 17,289 6,032 6,334 14,809 15 Tax and loan accounts 33,556 34,203 35,217 22,324 32,818 35,217 12,828 25,977 34,914 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 1992 1993 1993 11999922 11999933 HI H2 HI H2 Oct. Nov. Dec. RECEIPTS 1 All sources 1,090,453 l,153,147r 560,318 540,472 593,187r 582,020 78,668r 83,107 125,416 2 Individual income taxes, net 475,964 509,680 236,576 246,938 255,556 262,073 37,680 37,634 54,183 3 Withheld 408,352 430,427 198,868 215,584r 210,066 228,429 34,284 37,823 51,184 4 Presidential Election Campaign Fund 30 28 20 10 25 2 27 -27 0 5 Nonwithheld 149,342 154,772 110,995 39,288r 113,482 41,765 4,053 1,945 3,501 6 Refunds 81,760 75,546 73,308 7,942r 67,468 8,114 684 2,107 502 Corporation income taxes 7 Gross receipts 117,951 131,548 61,682 58,022 69,044 68,266 4,269 2,855 28,963 8 Refunds 17,680 14,027 9,403 7,219 7,198 6,514 2,111 647 725 9 Social insurance taxes and contributions, net 413,689 442288,,330000 222244,,556699 192,599 227,177 206,174 30,828 34,683 33,954 10 Employment taxes and contributions 385,491 396,939 208,110 180,758 208,776 192,749 29,440 31,525 33,273 11 Self-employment taxes and contributions 24,421 20,604 20,434 3,988 16,270 4,335 0 0 0 12 Unemployment insurance 23,410 26,556 14,070 9,397 16,074 11,010 1,046 2,773 259 13 Other net receipts 4,788 4,805 2,389 2,445 2,326 2,417 343 385 423 14 Excise taxes 45,569 48,057 22,389 23,456 23,398 25,994 3,597 4,808 4,695 15 Customs deposits 17,359 18,802 8,146 9,497 8,860 10,215 1,708 1,688 1,584 16 Estate and gift taxes 11,143 12,577 5,701 5,733 6,494 6,617 990 1,305 1,179 17 Miscellaneous receipts 26,459 18,211r 10,658 11,446 9,854r 9,192 l,706r 781 1,582 OUTLAYS 18 All types 1,380,794 l,407,831r 704,266 723,515 673,315r 728,165 124,090r 121,488 133,667 19 National defense 298,350 290,590 147,065 155,231r 140,535 146,177 24,281 22,990 26,809 20 International affairs 16,107 17,175 8,540 9,916 6,565 10,534 4,732 1,964 548 21 General science, space, and technology .... 16,409 17,055 7,951 8,521 7,996 8,904 1,421 1,522 1,496 22 Energy 4,499 4,445 1,442 3,109 2,462 1,641 424r 510 385 23 Natural resources and environment 20,025 20,088 8,594 11,467 8,588 11,077 1,911 2,784 1,567 24 Agriculture 15,205 20,257 7,526 8,852r 11,824 7,335 1,442 2,237 3,074 25 Commerce and housing credit 10,118 -23,532 15,615 -7,697r -15,112 -1,724 377 -1,361 1,126 26 Transportation 33,333 35,238 15,651 18,425 16,077 20,375 3,133 3,248 3,714 27 Community and regional development 6,838 10,395 3,903 4,464 4,935 5,606 898 930 772 28 Education, training, employment, and social services 45,250 48,872 23,767 21,241r 23,983 25,515 3,586 5,098 4,455 29 Health 89,497 99,249 44,164 47,232 49,882 52,631 9,315 8,675 8,906 30 Social security and Medicare 406,569 435,137 205,500 232,109 195,933 223,735 36,267 37,047 39,720 31 Income security 196,891 207,933 104,537 98,382r 108,559 103,163 17,342 16,764 19,771 32 Veterans benefits and services 34,133 35,715 15,597 18,561 16,385 19,848 2,819 3,198 4,469 33 Administration of justice 14,426 14,983 7,435 7,238 7,463 7,448 1,011 1,306 1,244 34 General government 12,945 13,039 5,050 8,223 5,205 6,565 640 1,317 1,708 35 Net interest6 199,439 198,870 100,161 98,692' 99,635 99,963 17,082 ' 16,171 16,638 36 Undistributed offsetting receipts -39,280 -37,386 -18,229 -20,628 -17,035 -20,407 -2,593 -2,910 -2,737 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 • March 1994 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1991 1992 1993 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 3,820 3,897 4,001 4,083 4,196 4,250 4,373 4,436 n.a. 7 Public debt securities 3,802 3,881 3,985 4,065 4,177 4,231 4,352 4,412 4,536 3 Held by public 2,833 2,918 2,977 3,048 3,129 3,188 3,252 3,295 n.a. 4 Held by agencies 969 964 1,008 1,016 1,048 1,043 1,100 1,117 n.a. 5 Agency securities 19 16 16 18 19 20 21 25 n.a. 6 Held by public 19 16 16 18 19 20 21 25 n.a. 7 Held by agencies 0 0 0 0 0 0 0 0 n.a. 8 Debt subject to statutory limit 3,707 3,784 3,891 3,973 4,086 4,140 4,256 4,316 4,446 9 Public debt securities 3,706 3,783 3,890 3,972 4,085 4,139 4,256 4,315 4,445 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 4,370 4,900 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 1993 TTyyppee aanndd hhoollddeerr 11999900 11999911 11999922 11999933 Ql Q2 Q3 Q4 1 Total gross public debt 3,364.8 3,801.7 4,177.0 4,535.7 4,230.6 4,352.0 4,411.5 4,535.7 By type 2 Interest-bearing 3,362.0 3,798.9 4,173.9 4,532.3 4,227.6 4,349.0 4,408.6 4,532.3 3 Marketable 2,195.8 2,471.6 2,754.1 2,989.5 2,807.1 2,860.6 2,904.9 2,989.5 4 Bills 527.4 590.4 657.7 714.6 659.9 659.3 658.4 714.6 5 Notes 1,265.2 1,430.8 1,608.9 1,764.0 1,652.1 1,698.7 1,734.2 1,764.0 6 Bonds 388.2 435.5 472.5 495.9 480.2 487.6 497.4 495.9 7 Nonmarketable 1,166.2 1,327.2 1,419.8 1,542.9 1,420.5 1,488.4 1,503.7 1,542.9 8 State and local government series 160.8 159.7 153.5 149.5 151.6 152.8 149.5 149.5 9 Foreign issues 43.5 41.9 37.4 43.5 37.0 43.0 42.5 43.5 10 Government 43.5 41.9 37.4 43.5 37.0 43.0 42.5 43.5 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes. 124.1 135.9 155.0 169.4 161.4 164.4 167.0 169.4 13 Government account series 813.8 959.2 1,043.5 1,150.0 1,040.0 1,097.8 1,114.3 1,150.0 14 Non-interest-bearing 2.8 2.8 3.1 3.4 3.0 2.9 2.9 3.4 By holder 4 15 U.S. Treasury and other federal agencies and trust funds 828.3 968.7 1,047.8 1,043.2 1,099.8 1,116.7 16 Federal Reserve Banks 259.8 281.8 302.5 305.2 328.2 325.7 17 Private investors 2,288.3 2,563.2 2,839.9 2,895.0 2,938.4 2,983.0 18 Commercial banks 171.5 233.4 294.0 310.0 305.9" 306.0 19 Money market funds 45.4 80.0 79.4 77.7 76.2r 75.2 20 Insurance companies 142.0 168.7 197.5r 205.0r 208. r 210.0 21 Other companies 108.9 150.8 192.5 n.a. 199.3 206.1 215.6 n.a. 22 State and local treasuries 490.4 520.3 534.8 541.0 553.91 558.0 Individuals 23 Savings bonds 126.2 138.1 157.3 163.6 166.5 169.1 24 Other securities 107.6 125.8 131.9 134.1 136.4 136.7 25 Foreign and international 458.4 491.8 549.7r 565.5r 568.2r 592.3 26 Other miscellaneous investors 637.7 651.3 702.4r 698.8r 717.0" 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 Sept. Oct. Nov. Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 43,380* 39,670* 47,256 42,764 51,270 53,746 44,817 40,470 45,673 45,239 44,282 3311,,222200 Coupon securities, by maturity 2 Less than 3.5 years 49,496 44,600 52,959 54,168 65,570 47,528 50,258 42,476 42,231 40,198 40,743 2222,,771166 3 3.5 to 7.5 years 48,286* 43,354* 45,242 50,175 44,918 41,249 52,676 33,781 34,110 33,711 32,879 16,731 4 7.5 to 15 years 26,328 25,444 26,971 28,309 33,080 25,872 24,315 21,341 22,327 19,027 14,369 9,275 5 15 years or more 22,996 19,347 17,995 22,687 20,214 17,198 15,981 14,026 16,112 16,105 11,926 7,553 Federal agency securities Debt, by maturity 6 Less than 3.5 years 8,633 9,959 9,971 10,066 8,236 10,661 11,375 9,505 9,858 9,438 10,390 1100,,224488 7 3.5 to 7.5 years 661 734 718 641 729 919 783 398 785 583 489 303 8 7.5 years or more 653 567 396 541 381 379 410 273 572 706 365 212 Mortgage-backed 9 Pass-throughs 20,614* 20,766* 22,489 16,423 29,570 26,079 18,801 18,113 21,419 24,269 17,601 12,630 10 All others7: 3,239* 2,853* 3,064 3,154 3,198 2,678 3,220 3,006 3,133 3,217 2,890 1,523 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 119,572* 106,341* 120,636 126,621 138,715 114,888 119,595 93,917 99,035 95,238 87,382 5500,,889966 Federal agency securities 12 Debt 1,466 1,487 1,623 1,461 1,409 1,752 1,855 1,585 1,518 1,508 1,032 991155 13 Mortgage-backed 9,681* 10,194* 10,965 7,348 14,278 11,608 10,224 9,436 8,942 11,425 8,413 6,509 Customers 14 U.S. Treasury securities 70,914* 66,073* 69,787 71,482 76,338 70,704 68,453 58,177 61,417 59,043 56,818 3366,,559999 Federal agency securities 15 Debt 8,481 9,773 9,461 9,787 7,937 10,206 10,713 8,592 9,698 9,219 10,212 99,,884488 16 Mortgage-backed 14,172* 13,427* 14,589 12,230 18,490 17,149 11,797 11,683 15,610 16,060 12,078 7,644 FUTURES AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 2,504 2,445 2,746 2,484 4,965 1,792 1,568 2,543 2,616 1,592 1,474 779922 Coupon securities, by maturity 18 Less than 3.5 years 2,254 1,603 2,276 1,728 2,166 2,244 2,920 1,976 1,785 1,648 22,,226622 11,,220000 19 3.5 to 7.5 years 2,220 1,530 2,158 1,967 2,048 1,759 2,640 2,259 1,763 1,751 2,673 858 20 7.5 to 15 years 3,040 3,153 4,192 4,211 4,309 4,022 4,388 3,879 4,020 2,725 3,034 1,540 21 15 years or more 13,177* 11,266* 12,704 15,775 12,137 11,879 13,554 10,260 11,751 9,948 7,336 4,840 Federal agency securities Debt, by maturity 22 Less than 3.5 years 150 47 77 111 147 6 69 31 14 22 13 4499 23 3.5 to 7.5 years 90 107* 93 122 132 111 48 52 57 64 13 66 24 7.5 years or more 30 33 29 71 18 30 9 37 73 136 71 9 Mortgage-backed 25 Pass-throughs 26,532* 26,416* 26,164 29,160 38,228 24,198 19,934 16,068 19,839 28,154 14,250 77,,226688 26 Others3 1,955* 2,283* 1,916 2,328 1,996 1,393 2,664 819 1,079 1,116 3,142 1,893 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,768 1,956 2,121 2,199 2,178 2,024 2,496 1,452 2,154 1,821 1,208 11,,225588 28 3.5 to 7.5 years 852 699 618 744 572 434 983 208 277 315 266 487 29 7.5 to 15 years 863 610 770 666 526 793 1,182 560 737 561 587 663 30 15 years or more 3,645 1,782 2,120 1,943 2,104 1,560 3,142 1,364 1,162 1,388 1,306 616 Federal agency, mortgagebacked securities 31 Pass-throughs 805 888 942 943 907 594 1,254 943 774 748 247 199 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 • March 1994 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing' Millions of dollars 1993 1993, week ending item Sept. Oct.r Nov. Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Positions2 NET IMMEDIATE POSITIONS3 By type of security U.S. Treasury securities 1 Bills 6,161 2,561 16,062 -4,788 1188,,554477 2211,,336600 1199,,552200 1133,,337700 1133,,665555 2211,,776622 1166,,996611 Coupon securities, by maturity 2 Less than 3.5 years 1,901 -2,850 -3,830 -689 2 -6,995 -2,301 -7,960 -11,761 -10,823 -4,585 3 3.5 to 7.5 years -21,050 -22,479 -24,582 -23,275 -26,574 -26,279 -23,562 -22,120 -22,873 -20,%9 -15,272 4 7.5 to 15 years -3,312 -6,635 -890 -5,902 488 379 -428 -2,009 -331 -1,680 -3,332 5 15 years or more 10,167 6,313 3,050 5,302 44,,882277 22,,880022 22,,229977 11,,001199 22,,005533 --11,,998877 -31 Federal agency securities Debt, by maturity 6 Less than 3.5 years 9,784 11,014 9,381 11,900 10,798 7,513 9,910 8,028 6,542 9,113 10,756 7 3.5 to 7.5 years 3,289 3,363 3,189 3,257 3,124 3,187 3,136 3,295 3,546 3,398 3,516 8 7.5 years or more 4,083 4,497 4,089 4,321 44,,002255 44,,110077 33,,993344 44,,220066 44,,335544 44,,337711 44,,775544 Mortgage-backed 9 Pass-throughs 53,317 52,587 44,884 43,983 50,417 50,861 48,537 27,645 37,094 39,944 42,441 10 All othersC. 35,409r 37,476 34,391 40,005 3377,,550044 3333,,330044 3311,,110033 3333,,005544 3311,,333333 3300,,995599 2277,,880055 Other money market instruments 11 Certificates of deposit 2,705 3,363 3,428 3,280 3,424 3,125 3,410 3,879 2,939 3,210 4,003 12 Commercial paper 7,530 6,459 7,595 7,082 7,327 6,036 7,991 9,522 5,806 10,059 7,984 13 Bankers acceptances 1,103 1,287 1,432 1,056 1,505 1,463 1,438 1,490 1,383 1,200 1,054 FUTURES AND FORWARD POSITIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -4,347 4,571 4,475 8,450 5,986 33,,771188 4,263 11,,885555 --11,,999999 --11,,770088 11,,551144 Coupon securities, by maturity 15 Less than 3.5 years -1,829 -617 -952 -407 -472 -532 -2,131 -901 -2,150 -1,965 -1,461 16 3.5 to 7.5 years 933 2,585 1,646 2,943 2,638 1,465 1,428 307 1,380 982 -156 17 7.5 to 15 years 8,185 10,436 10,952 13,402 11,828 10,312 10,539 9,931 8,750 9,083 7,424 18 15 years or more -6,532 -3,013 -1,670 -1,869 -985 -290 --22,,994422 --22,,44%% --33,,994411 --22,,887777 --44,,555511 Federal agency securities Debt, by maturity 19 Less than 3.5 years 107 26 15 242 37 17 -113 23 13 -25 18 20 3.5 to 7.5 years -7 -111 68 -77 -50 157 201 18 -32 -7 -6 21 7.5 years or more 0 26 -8 -28 -28 -15 60 -47 -17 158 -5 Mortgage-backed 22 Pass-throughs -40,809 -37,665 -21,802 -25,050 -33,068 -26,614 -20,916 -2,456 -13,310 -10,046 -12,517 23 All others 7,468 6,104 2,417 3,530 2,816 3,154 3,081 -240 248 321 3,241 24 Certificates of deposit -215,144r -226,017 -226,180 -217,517 -237,362 -228,654 -216,838 -225,477 -232,840 -229,415 -223,011 Financing6 Reverse repurchase agreements 25 Overnight and continuing 241,660 239,427 228,936 245,950 232,831 239,9% 204,316 231,703 226,668 239,877 222,401 26 Term 402,712 424,391 409,163 424,660 444,897 400,806 411,929 366,248 392,063 399,619 401,470 Repurchase agreements 27 Overnight and continuing 471,885 454,395 435,254 456,450 428,833 463,030 385,292 458,032 429,671 478,417 439,708 28 Term 367,019 383,016 380,455 373,973 411,939 362,916 426,793 313,364 355,118 362,142 399,841 Securities borrowed 29 Overnight and continuing 134,602 137,205 135,624 140,664 135,791 137,065 128,289 139,783 138,784 142,946 141,172 30 Term 41,872 43,896 47,112 43,118 45,346 45,019 53,407 46,266 48,687 47,007 46,527 Securities loaned 31 Overnight and continuing 6,593 6,001 6,075 6,2% 5,204 6,175 6,524 6,341 5,225 5,384 4,877 32 Term 1,477 1,988 2,556 2,360 3,074 2,350 2,387 2,488 2,717 2,993 2,390 Collateralized loans 33 Overnight and continuing 16,964 17,715 17,989 16,364 19,761 19,421 16,612 16,669 15,8% 15,134 15,436 MEMO: Matched book7 Reverse repurchase agreements 34 Overnight and continuing 162,624r 160,156 158,777 170,789 158,101 164,401 148,147 159,402 157,012 158,680 152,487 35 Term 345,501r 369,585 361,098 369,733 393,579 352,808 363,915 325,273 345,235 352,688 352,448 Repurchase agreements 36 Overnight and continuing 216,717r 233,588 223,460 248,183 223,626 237,721 192,335 230,577 221,064 218,183 200,899 37 Term 269,654r 285,575 285,451 284,275 318,972 266,354 311,894 238,359 265,942 270,309 299,486 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 Digitized for F F spR o e r cA w i a fSy r d Ed e p Rl o a s y i e t d io n d s e l r iv e e fl r e y c . t A a l g l r f e u e t m u e r n es t s p o m s a it d i e o n i s n a t r h e e i o n v c e lu r d -t e h d e - r c e o g u a n r t d e l r e s m s a of r k t e im t e th t a o t f a o c r t i t v e i r t m y. financing of collateralized loans are no longer available because of insufficient 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 June July Aug. Sept. Oct. 1 Federal and federally sponsored agencies 411,805 434,668 442,772 483,970 512,072 522,494 544,642 0 0 2 Federal agencies 35,664 42,159 41,035 41,829 42,218 44,656 44,816 43,753 43,7% 3 Defense Department1 7 7 7 7 7 7 7 7 7 4 Export-Import Bank ' 10,985 11,376 9,809 7,208 6,258 6,258 6,258 5,801 5,801 5 Federal Housing Administration 328 393 397 374 283 97 154 213 240 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 10,182 10,182 10,182 9,732 9,732 8 Tennessee Valley Authority 17,899 23,435 22,401 23,580 25,488 28,112 28,215 28,000 28,016 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 375,428 392,509 401,737 442,141 469,854 477,838 499,826 0 0 11 Federal Home Loan Banks 136,108 117,895 107,543 114,733 127,289 125,448 129,808 132,651 133,365 12 Federal Home Loan Mortgage Corporation 26,148 30,941 30,262 29,631 35,572 42,291 55,421 52,702 0 13 Federal National Mortgage Association 116,064 123,403 133,937 166,300 176,527 180,730 184,924 195,786 193,925 14 Farm Credit Banks8 54,864 53,590 52,199 51,910 51,686 51,698 51,406 51,636 51,759 15 Student Loan Marketing Association 28,705 34,194 38,319 39,650 38,884 37,801 38,397 38,795 0 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 Corporation11 847 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 4,522 23,055 29,996 29,9% 29,9% 29,9% 29,9% 29,9% 29,9% MEMO 19 Federal Financing Bank debt13 134,873 179,083 185,576 154,994 132,953 132,307 128,616 129,329 127,348 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 10,979 11,370 9,803 7,202 6,252 6,252 6,252 5,795 5,795 21 Postal Service6 6,195 6,698 8,201 10,440 10,182 10,182 10,182 9,732 9,732 22 Student Loan Marketing Association 4,880 4,850 4,820 4,790 4,790 4,790 4,790 4,790 4,760 23 Tennessee Valley Authority 16,519 14,055 10,725 6,975 6,575 6,575 6,325 6,325 6,325 24 United States Railway Association 0 0 0 0 0 0 0 0 0 Other lending14 25 Farmers Home Administration 53,311 52,324 48,534 42,979 39,729 39,129 38,619 38,619 38,619 26 Rural Electrification Administration 19,265 18,890 18,562 18,172 17,895 17,883 17,897 17,653 17,561 27 Other 23,724 70,896 84,931 64,436 47,530 47,4% 44,551 46,415 44,556 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 • March 1994 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1993 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11999900 11999911 11999922 May June July Aug. Sept. Oct. Nov. Dec. 1 All issues, new and refunding1 120,339 154,402 215,191 27,395r 29,276r 24,087" 24,438r 23,504r 21,900" 18,094 24,520 By type of issue 2 General obligation 39,610 55,100 78,611 9,846R 9,614R 8,537R 6,414R 5,884R 7,495" 6,422 6,542 3 Revenue 81,295 99,302 136,580 17,549" 19,662R 15,550" 18,024R 17,620" 14,405" 11,672 17,978 By type of issuer 4 State 15,149 24,939 25,295 2,910 3,562 2,944 2,319 2,758 3,216 885 n.a. 5 Special district or statutory authority2 72,661 80,614 129,686 15,643 18,821 12,398 13,769 13,113 9,875 10,992 n.a. 6 Municipality, county, or township 32,510 48,849 60,210 8,827 6,835 8,616 8,307 7,476 8,418 4,528 n.a. 7 Issues for new capital 103,235 116,953 120,272 8,115r 9,502r 8,751r 8,oor 8,759" 7,261" 6,734 9,543 By use of proceeds 8 Education 17,042 21,121 22,071 1,5% 2,208 1,723 1,883 1,886 547 1,416 1,227 9 Transportation 11,650 13,395 17,334 813 772 653 1,062 789 304 979 429 10 Utilities and conservation 11,739 21,039 20,058 955 1,629 922 1,646 1,255 593 687 1,454 11 Social welfare 23,099 25,648 21,796 1,756 2,073 1,555 681 2,199 1,764 n.a. 2,171 12 Industrial aid 6,117 8,376 5,424 601 1,042 429 212 329 518 673 1,272 13 Other purposes 34,607 30,275 33,589 2,393 1,634 3,453 2,544 2,362 3,737 1,820 2,990 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 Apr. May June July" Aug." Sept." Oct. Nov. 1 All issues1 340,049 465,243 559,449 40,655" 43,121" 65,849" 49,727 53,303 64,682 57,165 55,150 2 Bonds2 299,884 389,822 471,125 34,404" 34,423" 56,055" 39,931 44,036 54,032 46,630 43,600 By type of offering 3 Public, domestic 188,848 286,930 377,681 31,200" 31,094" 51,458" 37,259 40,237 49,132 44,000 40,000 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 3,204 3,329 4,597 2,673 3,799 4,900 2,630 3,600 By industry group 6 Manufacturing 51,779 86,628 81,998 6,516" 3,690 8,397 2,448 6,132 4,046 2,970 3,354 7 Commercial and miscellaneous 40,733 36,666 42,869 2,194 3,015 2,605" 5,442 2,331 2,438 7,387 3,335 8 Transportation 12,776 13,598 9,979 123 685 948 611 723 288 1,416 687 9 Public utility 17,621 23,945 48,055 5,767 3,017" 5,874" 5,697 3,264 5,163 2,500 1,665 10 Communication 6,687 9,431 15,394 2,015 1,820 2,473 2,331 2,979 2,237 2,846 1,015 11 Real estate and financial 170,288 219,750 272,830 17,788 22,1% 35,758" 23,403 28,607 39,860 29,512 33,544 12 Stocks2 40,175 75,424 88,325 6,251 8,698 9,794 9,7% 9,267 10,650 10,535 11,550 By type of offering 13 Public preferred 3,998 17,085 21,339 702 3,124 876 2,113 3,319 1,323 2,549 1,384 14 Common 19,442 48,230 57,118 5,549 5,574 8,918 7,683 5,948 9,327 7,986 10,166 15 Private placement3 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 1,387 1,413 1,982 1,818 1,961 2,274 2,121 2,180 17 Commercial and miscellaneous 10,171 19,418 20,231 1,564 2,836 2,025 2,525 1,457 2,242 1,842 3,060 18 Transportation 369 2,439 2,595 250 111 168 114 466 153 128 221 19 Public utility 416 3,474 6,532 412 753 893 495 582 873 1,103 321 20 Communication 3,822 475 2,366 30 279 65 n.a. 115 248 18 1,074 21 Real estate and financial 19,738 25,507 33,879 2,579 3,307 4,660 4,844 4,675 4,658 5,286 4,427 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 Apr. May June July Aug. Sept.r Oct. Nov. 1 Sales of own shares2 463,645 647,055 66,766 60,504 68,373 72,503 73,032 69,938 74,490 72,590 2 Redemptions of own shares 342,547 447,140 46,518 38,752 46,923 44,922 46,382 49,270 47,168 51,270 3 Net sales3 121,098 199,915 20,248 21,759 21,650 27,581 26,650 20,667 27,322 21,319 4 Assets4 808,582 1,056,310 1,178,663 1,219,863 1,255,377 1,284,842 1,343,920 1,370,654 1,411,628 1,406,613 5 Cash5 60,292 73,999 87,140 85,677 84,177 93,345 92,771 96,848 104,301 103,489 6 Other 748,290 982,311 1,091,523 1,134,186 1,171,200 1,191,497 1,251,149 1,273,807 1,307,327 1,303,124 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 1991 1992 1993 AAccccoouunntt 11999900 11999911 11999922 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r 1 Profits with inventory valuation and capital consumption adjustment 380.6 369.5 407.2 378.8 409.9 411.7 367.5 439.5 432.1 458.1 468.5 2 Profits before taxes 365.7 362.3 395.4 373.5 404.3 409.5 357.9 409.9 419.8 445.6 443.8 3 Profits tax liability 138.7 129.8 146.3 133.4 147.0 153.0 130.1 155.0 160.9 173.3 169.5 4 Profits after taxes 227.1 232.5 249.1 240.1 257.3 256.5 227.8 254.9 258.9 272.3 274.3 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 91.4 103.9 104.6 7 Inventory valuation -11.0 4.9 -5.3 1.9 -4.6 -13.7 -7.8 4.9 -12.7 -12.2 1.0 8 Capital consumption adjustment 25.9 2.2 17.1 3.5 10.2 16.0 17.4 24.7 25.1 24.7 23.8 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 1994 IInndduussttrryy 11999922 11999933 1199994411 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql1 1 Total nonfarm business 546.60 584.64 616.50 541.41 547.40 559.24 564.13 579.79 594.11 600.53 616.38 Manufacturing 2 Durable goods industries 73.32 81.49 84.93 74.07 72.09 73.30 79.11 80.88 81.99 83.99 87.50 3 Nondurable goods industries 100.69 97.97 101.34 97.91 100.77 103.56 95.94 96.21 100.18 99.53 98.72 Nonmanufacturing 4 Mining 8.88 10.13 10.84 9.20 8.98 8.47 8.89 9.10 11.14 11.37 10.83 Transportation 5 Railroad 6.67 6.20 6.21 66..3322 6.70 7.04 6.00 6.00 5.91 6.90 6.32 6 Air 8.93 6.83 4.45 9.65 9.69 7.60 7.30 6.54 6.92 6.57 4.64 7 Other 7.04 9.34 10.25 7.19 7.52 6.97 9.17 9.04 8.88 10.26 10.53 Public utilities 8 Electric 48.22 51.82 57.00 48.35 48.17 49.57 49.92 50.51 52.74 54.11 54.16 9 Gas and other 23.99 23.17 24.42 24.29 24.01 24.50 23.59 24.04 22.88 22.19 23.62 10 Commercial and other2 268.84 297.69 317.05 264.46 269.46 278.24 284.21 297.46 303.47 305.61 320.06 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 NonfinancialS tatistics • March 1994 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1992 1993 AAccccoouunntt 11999900 11999911 11999922 Q1 Q2 Q3 Q4 QL Q2 Q3 ASSETS 1 Accounts receivable, gross2 492.3 480.6 482.1 475.6 476.7 473.9 482.1 469.6 469.3 467.6 2 Consumer 133.3 121.9 117.1 118.4 116.7 116.7 117.1 111.9 111.3 112.6 3 Business 293.6 292.9 296.5 290.8 293.2 288.5 296.5 289.6 290.7 287.8 4 Real estate 65.5 65.8 68.4 66.4 66.8 68.8 68.4 68.1 67.2 67.2 5 LESS: Reserves for unearned income 57.6 55.1 50.8 53.6 51.2 50.8 50.8 47.4 47.5 48.0 6 Reserves for losses 9.6 12.9 15.8 13.0 12.3 12.0 15.8 15.5 13.8 11.1 7 Accounts receivable, net 425.1 412.6 415.5 409.0 413.2 411.1 415.5 406.6 408.0 408.5 8 All other 113.9 149.0 150.6 145.5 139.4 146.5 150.6 155.0 156.6 162.0 9 Total assets 539.0 561.6 566.1 554.5 552.6 557.6 566.1 561.6 564.6 570.5 LIABILITIES AND CAPITAL 10 Bank loans 31.0 42.3 37.6 38.0 37.8 38.1 37.6 34.1 29.5 25.8 11 Commercial paper 165.3 159.5 156.4 154.4 147.7 153.2 156.4 149.8 144.5 149.9 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 34.8 34.9 37.8 41.9 46.4 47.9 15 Not elsewhere classified 178.2 191.3 195.3 189.8 191.9 191.4 195.3 195.1 195.8 196.5 16 All other liabilities 63.9 69.0 71.2 72.0 73.4 73.7 71.2 74.2 81.3 81.5 17 Capital, surplus, and undivided profits 63.7 64.8 67.8 66.0 67.1 68.1 67.8 66.6 67.1 68.9 18 Total liabilities and capital 539.6 561.2 566.1 554.6 552.7 559.4 566.1 561.7 564.6 570.5 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 June July Aug. Sept. Oct. Nov. Seasonally adjusted 11 TToottaall 522,474 519,910 534,845 522,981 523,539 525,744 527,819' 529,310 533,555 22 CCoonnssuummeerr 160,468 154,822 157,707 152,979 153,228 153,420 154,707 155,700 157,440 33 RReeaall eessttaattee22 65,147 65,383 68,011 67,223 67,426 67,216 66,871 67,983 68,540 44 BBuussiinneessss 296,858 299,705 309,127 302,778 302,885 305,108r 306,241r 305,627 307,575 Not seasonally adjusted 5 Total 525,888 523,192 538,158 526,818 523,389 521,094 524,937' 528,869 533,220 6 Consumer 161,360 155,713 158,631 152,995 153,733 154,218 155,496 156,712 157,850 7 Motor vehicles 75,045 63,415 57,605 55,592 56,817 55,247 55,057 54,324 55,337 8 Other consumer3 58,213 58,522 59,522 55,737 56,259 56,616 57,588 58,278 59,463 9 Securitized motor vehicles4 . 19,837 23,166 29,775 31,642 30,787 32,856 33,549 3355,,221122 34,303 10 Securitized other consumer4 8,265 10,610 11,729 10,023 9,870 9,498 9,302 88,,889988 8,747 11 Real estate2 65,509 65,760 68,410 67,230 67,649 67,565 67,212 68,425 68,718 12 Business 299,019 301,719 311,118 306,593 302,007 299,311 302,229" 303,732 306,652 13 Motor vehicles 92,125 90,613 87,456 90,263 87,745 84,920" 86,019" 86,129 88,510 14 Retail5 26,454 22,957 19,303 16,995 17,561 17,264 18,365' 16,599 16,723 15 Wholesale6 33,573 31,216 29,962 31,787 27,442 25,136 25,458 27,144 29,260 16 Leasing 32,098 36,440 38,191 41,481 42,743 42,520 42,1% 42,386 42,526 17 Equipment 137,654 141,399 151,607 146,487 146,408 146,404 147,905 148,357 147,609 18 Retail 31,968 30,962 32,212 32,775 33,209 33,676 33,789 33,357 33,266 19 Wholesale6 11,101 9,671 8,669 8,482 8,224 8,059 8,113 8,091 7,802 20 Leasing 94,585 100,766 110,726 105,230 104,975 104,669 106,004 106,909 106,541 21 Other business 63,773 60,900 57,464 53,987 53,243 53,536 53,861 53,%9 53,886 22 Securitized business assets . 5,467 8,807 14,590 15,856 14,611 14,451 14,444 15,277 16,647 23 Retail 667 576 1,118 1,324 1,268 1,220 1,168 1,690 1,910 24 Wholesale 3,281 5,285 8,756 9,539 8,318 8,329 8,529 8,785 9,407 25 Leasing 1,519 2,946 4,716 4,993 5,025 4,902 4,747 4,802 5,330 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. Digitized for rFeRcrAeaStioEn Rve hicles. 4. Outstanding balances of pools upon which securities have been issued; these http://fraser.sbtalolauncisesf eadre. onor glo/ nger carried on the balance sheets of the loan originator. 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 11999911 11999922 11999933 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 155.0 158.1 163.1 185.6 168.7 158.1 155.3 169.2 174.4 167.9 2 Amount of loan (thousands of dollars) 114.0 118.1 123.0 125.3 127.4 122.2 120.8 128.4 134.0 128.7 3 Loan-to-price ratio (percent) 75.0 76.6 78.0 75.3 77.8 78.4 78.5 78.0 79.1 79.2 4 Maturity (years) 26.8 25.6 26.1 25.4 26.2 26.4 26.5 26.7 26.9 26.8 5 Fees and charges (percent of loan amount) 1.71 1.60 1.30 1.32 1.28 1.21 1.13 1.23 1.23 1.10 Yield (percent per year) 6 Contract rate , 9.02 7.98 7.02 7.02 6.99 6.86 6.76 6.61 6.61 6.74 7 Effective rate13 9.30 8.25 7.24 7.23 7.20 7.05 6.95 6.80 6.80 6.92 8 Contract rate (HUD series)4 9.20 8.43 7.37 7.33 7.31 6.89 6.94 7.05 7.38 7.26 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 9.25 8.46 7.46 7.52 7.51 7.02 7.03 7.08 7.51 7.52 10 GNMA securities 8.59 7.71 6.59 6.74 6.53 6.42 6.15 6.11 6.38 6.07 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 122,837 142,833 172,791 171,232 174,674 177,992 180,057 182,524 185,463 190,861 12 FHA/VA insured 21,702 22,168 22,876 22,656 22,761 22,834 22,810 22,978 23,334 23,857 13 Conventional 101,135 120,664 149,914 148,576 151,913 155,158 157,247 159,546 162,129 167,004 Mortgage transactions (during period) 14 Purchases 37,202 75,905 92,037 9,131 7,854 8,176 8,866 8,780 8,979 12,123 Mortgage commitments (during period) 15 Issued 40,010 74,970 92,537 8,697 7,760 8,581 9,814 7,515 11,144 8,461 16 To sell8 7,608 10,493 5,097 323 458 2,585 0 0 0 209 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 24,131 29,959 42,789 42,477 43,119 44,396 46,858 50,108 52,933 55,012 18 FHA/VA insured 484 408 327 319 314 324 323 321 324 321 19 Conventional 23,283 29,552 42,462 42,158 42,805 44,072 46,536 49,787 52,610 54,691 Mortgage transactions (during period) 20 Purchases 99,965 191,125 229,242 21,529 19,700 19,636 18,372 18,658 27,062 29,396 21 Sales 92,478 179,208 208,723 18,968 18,631 18,008 16,230 15,985r 24,028 26,607 Mortgage commitments (during period)9 22 Contracted 114,031 261,637 274,599 28,831 21,722 17,085 16,495 24,614 39,977 24,176 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 Domestic NonfinancialS tatistics • March 1994 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1992 1993 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11998899 11999900 11999911 Q3 Q4 Ql Q2 Q3P 1 All holders 3,549,564r 3,761,525r 3,923,371" 4,020,556r 4,042,926r 4,059,200" 4,099,621" 4,160,167 By type of property 2 One- to four-family residences 2,408,402r 2,615,435r 2,778,803r 2,911,442r 2,953,527r 2,976,784" 3,026,924" 3,088,521 3 Multifamily residences 306,517r 309,369" 306,410r 301,975r 294,976r 293,578" 290,609" 290,857 4 Commercial 754,169r 758,313r 759,023r 726,562r 713,701r 708,086" 701,280" 699,926 5 Farm 80,476 78,408r 79,136r 80,577r 80,722" 80,752" 80,808" 80,863 By type of holder 6 Major financial institutions 1,931,537 1,914,315 1,846,726 1,793,492 l,769,187r 1,753,045" 1,765,052" 1,770,274 7 Commercial banks 767,069 844,826 876,100 891,445 894,513r 891,755" 910,944" 922,366 8 One- to four-family 389,632 455,931 483,623 502,075 507,780r 507,497" 526,800" 536,321 9 Multifamily 38,876 37,015 36,935 38,757 38,024" 37,425" 38,064" 38,370 10 Commercial 321,906 334,648 337,095 330,705 328,826r 326,853" 325,485" 326,859 11 Farm 16,656 17,231 18,447 19,908 19,882 19,980" 20,595" 20,815 12 Savings institutions 910,254 801,628 705,367 648,178 627,972 617,163" 612,379" 610,081 13 One- to four-family 669,220 600,154 538,358 501,604 489,622 480,415" 480,636" 478,832 14 Multifamily 106,014 91,806 79,881 73,723 69,791 70,608" 68,325" 68,068 15 Commercial 134,370 109,168 86,741 72,517 68,235 65,808" 63,0%" 62,860 16 Farm 650 500 388 334 324 332 322" 321 17 Life insurance companies 254,214 267,861 265,258 253,869 246,702 244,128 241,729" 237,826 18 One- to four-family 12,231 13,005 11,547 11,779 11,441 11,316 11,195" 11,008 19 Multifamily 26,907 28,979 29,562 28,591 27,770 27,466 27,174" 26,718 20 Commercial 205,472 215,121 214,105 204,132 198,269 196,100 194,012" 190,758 21 Farm 9,604 10,756 10,044 9,366 9,222 9,246 9,348" 9,343 22 Federal and related agencies 197,778 239,003 266,146 277,485 286,263r 287,182 299,214 310,825 23 Government National Mortgage Association 23 20 19 27 30 45 45 44 24 One- to four-family 23 20 19 27 30 37 38 37 25 Multifamily 0 0 0 0 0 8 7 7 26 Fanners Home Administration 41,176 41,439 41,713 41,671 41,695 41,630 41,669 41,669 27 One- to four-family 18,422 18,527 18,496 17,292 16,912 18,149 18,313 18,313 28 Multifamily 9,054 9,640 10,141 10,468 10,575 10,235 10,197 10,197 29 Commercial 4,443 4,690 4,905 5,072 5,158 4,934 4,915 4,915 30 Farm 9,257 8,582 8,171 8,839 9,050 8,313 8,245 8,245 31 Federal Housing and Veterans' Administrations 6,087 8,801 10,733 11,768 12,581 13,027 12,945 12,797 32 One- to four-family 2,875 3,593 4,036 4,531 5,153 5,631 5,635 5,460 33 Multifamily 3,212 5,208 6,697 7,236 7,428 7,396 7,311 7,336 34 Resolution Trust Corporation 0 32,600 45,822 37,099 32,045 27,331 21,973 19,925 35 One- to four-family 0 15,800 14,535 12,614 12,960 11,375 8,955 8,381 36 Multifamily 0 8,064 15,018 11,130 9,621 8,070 6,743 6,002 37 Commercial 0 8,736 16,269 13,356 9,464 7,886 6,275 5,543 38 Farm 0 0 0 0 0 0 0 0 39 Federal National Mortgage Association 99,001 104,870 112,283 126,476 137,584 141,192 151,513 160,721 40 One- to four-family 90,575 94,323 100,387 113,407 124,016 127,252 137,340 146,009 41 Multifamily 8,426 10,547 11,896 13,069 13,568 13,940 14,173 14,712 42 Federal Land Banks 29,640 29,416 28,767 28,815 28,664r 28,536 28,592 28,810 43 One- to four-family 1,210 1,838 1,693 1,695 1,687r 1,679 1,682 1,695 44 Farm 28,430 27,577 27,074 27,119 26,977r 26,857 26,909 27,115 45 Federal Home Loan Mortgage Corporation 21,851 21,857 26,809 31,629 33,665 35,421 42,477 46,859 46 One- to four-family 18,248 19,185 24,125 29,039 31,032 32,831 39,905 44,315 47 Multifamily 3,603 2,672 2,684 2,591 2,633 2,589 2,572 2,544 48 Mortgage pools or trusts5 917,848 1,079,103 1,250,666 1,385,460 1,425,546 1,461,612 1,472,844 1,513,024 49 Government National Mortgage Association 368,367 403,613 425,295 422,255 419,516 421,514 413,166 415,076 50 One- to four-family 358,142 391,505 415,767 413,063 410,675 412,798 404,425 405 ,%3 51 Multifamily 10,225 12,108 9,528 9,192 8,841 8,716 8,741 9,113 52 Federal Home Loan Mortgage Corporation 272,870 316,359 359,163 391,762 407,514 420,932 422,882 430,089 53 One- to four-family 266,060 308,369 351,906 385,400 401,525 415,279 417,646 425,154 54 Multifamily 6,810 7,990 7,257 6,362 5,989 5,654 5,236 4,935 55 Federal National Mortgage Association 228,232 299,833 371,984 429,935 444,979 457,316 465,220 481,880 56 One- to four-family 219,577 291,194 362,667 420,835 435,979 448,483 456,645 473,599 57 Multifamily 8,655 8,639 9,317 9,100 9,000 8,833 8,575 8,281 58 Farmers Home Administration 80 66 47 41 38 44 45 45 59 One- to four-family 21 17 11 9 8 10 10 10 60 Multifamily 0 0 0 0 0 0 0 0 61 Commercial 26 24 19 18 17 18 19 19 6? Farm 33 26 17 14 13 16 16 16 63 Private mortgage conduits 48,299 59,232 94,177 141,468 153,499 161,805 171,532 185,933 64 One- to four-family 43,325 53,335 84,000 123,000 132,000 137,000 145,000 158,000 65 Multifamily 462 731 3,698 5,796 6,305 6,662 7,410 8,074 66 Commercial 4,512 5,166 6,479 12,673 15,194 18,143 19,121 19,859 67 Farm 0 0 0 0 0 0 0 0 68 Individuals and others6 502,401r 529,104r 559,833r 564,118r 561,930" 557,360" 562,511" 566,045 69 One- to four-family 318,842r 348,638r 367,633r 375,072r 372,708r 367,031" 372,699" 375,423 70 Multifamily 84,272r 85,969r 83,796r 85,960" 85,430" 85,977" 86,083" 86,500 71 Commercial 83,440" 80.7611 93,410" 88,090" 88,538r 88,344" 88,357" 89,113 72 Farm 15,846 13,737r 14,994r 14,996r 15,254r 16,008" 15,372" 15,008 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 June July Aug. Sept.r Oct. Nov. Seasonally adjusted 1 Total 738,765 733,510 741,093 752,428 757,465 762,503 768,573 776,234 783,115 2 Automobile 284,739 260,898 259,627 265,388 267,468 268,784 270,650 274,600 277,576 3 Revolving.. 222,552 243,564 254,299 263,338 266,938 270,753 273,703 277,125 279,273 4 Other 231,474 229,048 227,167 223,701 223,058 222,967 224,220 224,509 226,266 Not seasonally adjusted 5 Total 752,883 749,052 756,944 748,830 753,645 763,268 770,384 776,719 784,702 By major holder 6 Commercial banks 347,087 340,713 331,869 335,592 339,948 345,449 349,699 352,559 358,429 7 Finance companies 133,258 121,937 117,127 111,330 113,076 111,864 112,645 113,220 115,352 8 Credit unions 93,057 92,681 97,641 104,781 106,027 108,095 109,687 110,830 112,342 9 Retailers 43,464 39,832 42,079 38,813 39,043 39,688 39,842 40,310 42,047 10 Savings institutions 52,164 45,965 43,461 37,250 36,485 35,919 34,985 34,251 33,500 11 Gasoline companies 4,822 4,362 4,365 4,567 4,668 4,728 4,574 4,599 4,507 12 Pools of securitized assets 79,030 103,562 120,402 116,497 114,398 117,525 118,952 120,950 118,525 By major type of credit3 13 Automobile 284,903 261,219 259,964 265,345 267,646 270,495 273,291 276,665 277,783 14 Commercial banks 124,913 112,666 109,743 114,901 116,729 118,535 120,574 122,162 122,989 15 Finance companies 75,045 63,415 57,605 55,592 56,817 55,247 55,057 55,107 56,058 16 Pools of securitized assets 24,620 28,915 33,878 34,701 33,673 35,569 36,123 37,630 36,571 17 Revolving 234,801 256,876 267,949 260,993 264,100 269,663 272,579 275,109 280,080 18 Commercial banks 133,385 138,005 132,582 129,921 132,984 135,466 136,738 137,844 142,382 19 Retailers 38,448 34,712 36,629 33,328 33,505 34,099 34,214 34,668 36,319 20 Gasoline companies 4,822 4,362 4,365 4,567 4,668 4,728 4,574 4,599 4,507 21 Pools of securitized assets 45,637 63,595 74,243 70,842 69,935 71,562 72,646 73,556 72,357 22 Other 233,178 230,957 229,031 222,491 221,899 223,109 224,514 224,945 226,839 23 Commercial banks 88,789 90,042 89,544 90,770 90,235 91,448 92,387 92,553 93,058 24 Finance companies 58,213 58,522 59,522 55,737 56,259 56,616 57,588 58,113 59,294 25 Retailers 5,016 5,120 5,450 5,485 5,538 5,589 5,628 5,642 5,728 26 Pools of securitized assets 8,773 11,052 12,281 10,954 10,790 10,394 10,183 9,764 9,597 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 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks2 1 48-month new car 11.78 11.14 9.29 8.17 n.a. n.a. 7.98 n.a. n.a. 7.63 2 24-month personal 15.46 15.18 14.04 13.63 n.a. n.a. 13.45 n.a. n.a. 13.22 3 120-month mobile home 14.02 13.70 12.67 12.00 n.a. n.a. 11.53 n.a. n.a. 11.55 4 Credit card 18.17 18.23 17.78 17.15 n.a. n.a. 16.59 n.a. n.a. 16.30 Auto finance companies 5 New car 12.54 12.41 9.93 9.51 9.45 9.37 9.21 9.21 9.25 88..9966 6 Used car 15.99 15.60 13.80 12.61 12.55 12.46 12.48 12.52 12.58 12.41 OTHER TERMS3 Maturity (months) 1 New car 54.6 55.1 54.0 54.4 54.6 54.7 54.9 54.7 55.0 54.5 8 Used car 46.0 47.2 47.9 48.9 49.0 49.0 49.0 48.8 48.2 48.4 Loan-to-value ratio 9 New car 87 88 89 91 91 91 91 91 90 91 10 Used car 95 96 97 98 98 98 99 98 98 98 Amount financed (dollars) 11 New car 12,071 12,494 13,584 14,146 14,296 14,430 14,324 14,348 14,650 14,839 12 Used car 8,289 8,884 9,119 9,829 9,912 9,996 10,104 9,808 9,969 10,230 1. The Board's series on amounts of credit covers most short- and intermedi- 2. Data are available for only the second month of each quarter, ate-term credit extended to individuals that is scheduled to be repaid (or has the 3. At auto finance companies, option of repayment) in two or more installments. Data in this table also appear in the Board's G.19 (421) monthly statistical release. For ordering address, see Digitized for FRinAsidSe EfrRon t cover. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • March 1994 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1992 1993 11998888 11998899 11999900 11999911 11999922 Q1 Q2 Q3 Q4 Ql* Q2* Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 752.6 723.0 631.0 475.5 582.4r 603.3* 586.2* 610.8* 529.1* 399.3 667.5 579.7 By sector and instrument 2 U.S. government 155.1 146.4 246.9 278.2 304.0 323.8 352.9 299.1 240.1 229.6 348.2 177.2 3 Treasury securities 137.7 144.7 238.7 292.0 303.8 335.0 352.5 290.1 237.4 226.4 344.1 160.9 4 Agency issues and mortgages 17.4 1.6 8.2 -13.8 .2 -11.2 .4 9.0 2.7 3.2 4.1 16.2 5 Private 597.5 576.6 384.1 197.3 278.4r 279.5* 233.4* 311.7* 289.0* 169.7 319.2 402.5 By instrument 6 Tax-exempt obligations 53.7 65.3 57.3 69.6 65.7 68.0 76.6 75.8 42.4 62.4 67.2 38.9 V Corporate bonds 103.1 73.8 47.1 78.8 67.3 76.3 77.8 61.3 53.7 75.0 64.9 55.2 8 Mortgages 279.6 269.1 188.7 165.1 121.lr 185.4* 69.8* 135.1* 93.9* 100.2 134.5 223.2 9 Home mortgages 219.6 212.5 177.2 166.0 176.0 216.5 111.6 203.3 172.8* 128.4 176.2 229.7 10 Multifamily residential 16.1 12.0 3.4 -2.5 -11.1 11.6 -16.9* -11.2* -27.9* -6.6 -12.8 .2 11 Commercial 48.5 47.3 8.9 .9 -45.5 -46.9 -25.7* -57.7* -51.6* -21.7 -29.1 -6.9 12 Farm -4.6 -2.7 -.8 .7 1.6* 4.2* .8* .8* .6* .1 .2 .2 13 Consumer credit 50.1 49.5 13.4 -13.1 9.3 -9.8 -14.7 13.5 48.2 19.2 22.9 60.8 14 Bank loans n.e.c 44.7 36.4 4.2 -46.8 -5.6* -47.3* 27.7* -24.1* 21.4* -39.7 31.8 8.1 15 Commercial paper 11.9 21.4 9.7 -18.4 8.6 2.5 -2.6 9.3 25.4 -24.2 34.8 24.2 16 Other loans 54.3 61.0 63.6 -37.8 12.0* 4.5* -1.1* 40.8* 3.9* -23.0 -37.0 -8.0 By borrowing sector 17 Household 300.1 276.7 207.7 168.4 215.0* 199.2* 176.5* 217.7* 266.6* 137.4 215.8 322.4 18 Nonfinancial business 248.4 236.3 121.9 -33.4 4.0* 18.2* -10.1* 20.5* -12.7* -38.9 34.5 36.4 19 Farm -10.0 .5 1.8 2.4 1.5* 4.3* 3.6* -.1* -1.6* -2.5 3.4 4.6 20 Nonfarm noncorporate 57.2 49.4 19.4 -24.5 -39.4* -21.8* -47.4* -37.3* -51.0* -36.7 -31.4 -14.1 21 Corporate 201.3 186.5 100.7 -11.3 41.8* 35.7* 33.7* 57.9* 39.9* .3 62.5 46.0 22 State and local government 48.9 63.5 54.5 62.3 59.4 62.1 66.9 73.5 35.1 71.2 68.9 43.7 23 Foreign net borrowing in United States 6.4 10.2 23.9 13.9 24.2 1.9 57.7 37.8 -.6 50.3 26.8 78.5 24 Bonds 6.9 4.9 21.4 14.1 17.3 4.9 21.9 20.3 22.2 75.6 30.4 85.5 25 Bank loans n.e.c -1.8 -.1 -2.9 3.1 2.3 1.5 14.1 3.9 -10.3 1.6 6.5 1.0 26 Open market paper 8.7 13.1 12.3 6.4 5.2 -8.0 27.8 13.1 -12.1 -21.7 -.6 -1.6 27 U.S. government loans -7.5 -7.6 -7.0 -9.8 -.6 3.6 -6.1 .5 -.4 -5.3 -9.5 -6.4 28 Total domestic plus foreign 759.0 733.1 654.9 489.4 606.6* 605.3* 644.0* 648.7* 528.5* 449.5 694.2 658.2 Financial sectors 29 Total net borrowing by financial sectors 239.9 213.7 193.5 150.4 209.5* 167.6 206.3* 294.4* 169.6* 148.5 130.3 366.8 By instrument 30 U.S. government-related 119.8 149.5 167.4 145.7 155.8 126.8 195.2 169.3 131.8 165.8 62.7 270.9 31 Government-sponsored enterprises securities 44.9 25.2 17.1 9.2 40.3 11.5 48.3 67.7 33.6 32.2 68.8 167.8 il Mortgage pool securities 74.9 124.3 150.3 136.6 115.6 115.3 146.9 101.6 98.4 133.6 -6.1 103.1 33 Loans from U.S. government .0 .0 -.1 .0 .0 .0 .0 .0 -.1 .0 .0 .0 34 Private 120.1 64.2 26.1 4.6 53.7* 40.8 11.0* 125.1* 37.8* -17.3 67.6 95.8 35 Corporate bonds 49.0 37.3 40.8 56.8 58.4* 28.6 59.1 71.5* 74.2 59.9 55.5 86.2 36 Mortgages .3 .5 .4 .8 .0 -.4 .1* .3* .1* .9 2.7 2.2 37 Bank loans n.e.c -3.8 6.0 1.1 17.1 -4.8 22.0 -39.1 17.7* -19.9* -21.2 -5.9 -12.5 38 Open market paper 54.8 31.3 8.6 -32.0 -.7 1.1 -14.8 17.5 -6.5 -75.5 -18.4 -12.4 39 Loans from Federal Home Loan Banks 19.7 -11.0 -24.7 -38.0 .8 -10.4 5.8 18.1 -10.1 18.6 33.5 32.3 By borrowing sector 40 Government sponsored enterprises 44.9 25.2 17.0 9.1 40.2 11.5 48.3 67.7 33.5 32.2 68.8 167.8 41 Federally related mortgage pools 74.9 124.3 150.3 136.6 115.6 115.3 146.9 101.6 98.4 133.6 -6.1 103.1 42 Private 120.1 64.2 26.1 4.6 53.7* 40.8 11.0* 125.1* 37.8* -17.3 67.6 95.8 43 Commercial banks -3.0 -1.4 -.7 -11.7 8.8 3.2 5.5 12.1 14.5 5.4 10.1 6.2 44 Bank affiliates 5.2 6.2 -27.7 -2.5 2.3 10.9 -9.2 6.6 .8 21.1 1.3 -1.2 45 Funding corporations 39.1 13.8 12.5 -13.6 1.6* 16.1 29.2* -7.7* -31.1* -54.2 7.2 -15.6 46 Savings institutions 21.7 -15.1 -30.2 -44.5 -6.7 -18.3 -5.4 11.2 -14.4 7.9 17.7 18.3 47 Credit unions .0 .0 .0 .0 .0 .0 .0 .0 .1 .0 .3 .3 48 Life insurance companies .0 .0 .0 .0 .0 .0 .0 .2 -.2 .1 .6 -.1 49 Finance companies 23.9 27.4 24.0 18.6 -3.6 -35.6 -20.1 21.2 19.9 -33.1 -38.6 9.4 50 Mortgage companies -6.2 3.0 -4.0 5.7 .1 27.5 -35.3 14.4 -6.4 -10.4 15.9 2.4 51 Real estate investment trusts (REITs) 1.8 1.3 1.0 1.6 .1 1.7 1.3* 2.0* -4.7* -1.4 2.5 3.8 52 Securitized credit obligation (SCO) issuers 37.6 28.9 51.1 51.0 51.1* 35.3 45.0 65.0* 59.2 47.2 50.5 72.5 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 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 11999922 Q1 Q2 Q3 Q4 Ql" Q2" Q3 All sectors 5533 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 998.8 946.8 848.4 639.8 816.0" 772.8" 850.2" 943.0" 698.1" 598.1 824.5 1,024.9 5544 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 274.9 295.8 414.4 424.0 459.8 450.6 548.1 468.5 372.0 395.3 410.9 448.1 5555 TTaaxx--eexxeemmpptt sseeccuurriittiieess 53.7 65.3 57.3 69.6 65.7 68.0 76.6 75.8 42.4 62.4 67.2 38.9 5566 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 159.0 116.0 109.2 149.6 143.0" 109.7" 158.8 153.2" 150.1 210.5 150.9 226.9 5577 MMoorrttggaaggeess 280.0 269.6 189.1 165.8 121.1" 185.0" 69.8" 135.4" 94.0" 101.0 137.3 225.5 5588 CCoonnssuummeerr ccrreeddiitt 50.1 49.5 13.4 -13.1 9.3 -9.8 -14.7 13.5 48.2 19.2 22.9 60.8 5599 BBaannkk llooaannss nn..ee..cc 39.2 42.3 2.4 -26.6 -8.1" -23.9" 2.8" -2.5" -8.8" -59.3 32.4 -3.4 6600 OOppeenn mmaarrkkeett ppaappeerr 75.4 65.9 30.7 -44.0 13.1 -4.5 10.3 39.9 6.8 -121.4 15.8 10.3 6611 OOtthheerr llooaannss 66.6 42.4 31.8 -85.6 12.2" -2.4" -1.4" 59.3" -6.7" -9.7 -13.0 17.9 External corporate equity funds raised in United States 62 Total net share issues -98.6 -59.6 22.2 210.6 282.5" 274.2" 264.1" 293.3" 298.4" 292.2 461.9 497.9 63 Mutual funds 6.1 38.5 67.9 150.5 206.7" 174.4 199.5" 235.2" 217.7" 240.9 357.5 340.3 64 All other -104.7 -98.1 -45.7 60.1 75.8" 99.9" 64.6" 58.1" 80.7" 51.2 104.4 157.6 65 Nonfinancial corporations -129.5 -124.2 -63.0 18.3 26.8 46.0 36.0 11.0 14.0 9.0 26.0 30.0 66 Financial corporations 23.9 8.8 9.9 11.2 18.4" 24.8" 17.4" 12.3" 19.2" 10.3 28.1 27.2 67 Foreign shares purchased in United States .9 17.2 7.4 30.7 30.6 29.1 11.2 34.8 47.5 31.9 50.3 100.4 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic NonfinancialS tatistics • March 1994 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 11999922 Ql Q2 Q3 Q4 Ql" Q2" Q3 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 998.8 946.8 848.4 639.8 816.0r 772.8r 850.2r 943.0" 698.1" 598.1 824.5 1,024.9 2 Private domestic nonfinancial sectors 196.1 122.6 162.8 -16.1 79.0" 135.5r 150.9r —62.3r 92.1" -140.8 -118.1 -155.2 3 Households 170.3 78.6 140.1 -49.7 50.2r 118.2r 109.6r -99.7r 72.5" -124.7 -134.6 -167.5 4 Nonfarm noncorporate business 3.1 -.7 -1.7 -4.2 -2.4 -3.9 -2.7 -2.0 -1.0 -3.7 -3.0 -2.2 5 Nonfinancial corporate business 5.7 13.6 -5.3 4.3 36.3 25.1 36.8 46.5 36.9 -1.8 14.3 25.9 6 State and local governments 17.1 31.1 29.6 33.5 -5.0 -3.9 7.2 -7.1 -16.3 -10.5 5.1 -11.5 7 U.S. government -10.6 -3.1 33.7 10.5 -11.9 15.2 -23.0 -26.7 -13.1 -24.1 -27.8 -15.4 8 Foreign 108.6 84.4 82.1 25.6 100.7r 96.5r 140.7r 78. 1" 87.5" 73.2 89.5 144.0 9 Financial sectors 704.8 742.9 569.9 619.8 648.2r 525.61 581.71 953.9" 531.5" 689.8 880.9 1,051.6 10 Government sponsored enterprises 33.2 -4.1 16.4 14.2 69.0r 92.7 38.6 73.0 71.7" 14.6 144.1 162.7 11 Federally related mortgage pools 74.9 124.3 150.3 136.6 115.6 115.3 146.9 101.6 98.4 133.6 -6.1 103.1 12 Monetary authority 10.5 -7.3 8.1 31.1 27.9 28.5 19.0 15.7 48.3 44.5 32.6 28.2 13 Commercial banking 156.5 177.2 125.1 84.3 94.8 85.1 72.7 148.0 73.3 86.4 153.4 132.6 14 U.S. commercial banks 126.4 146.1 94.9 39.2 69.8 76.3 13.3 123.5 66.0 100.4 142.0 147.0 15 Foreign banking offices 29.4 26.7 28.4 48.5 16.5 -.5 56.7 5.2 4.8 -12.5 -.7 -17.2 16 Bank holding companies -.1 2.8 -2.8 -1.5 5.6 7.1 -.4 16.4 -.6 -4.3 9.5 .3 17 Banks in U.S. affiliated areas .8 1.6 4.5 -1.9 2.9 2.2 3.2 3.0 3.0 2.9 2.6 2.5 18 Private nonbank finance 429.7 452.9 270.0 353.7 341.0r 204. r 304.5r 615.5r 239.9" 410.7 556.8 625.0 19 Thrift institutions 114.8 -86.6 -153.3 -123.0 -59.9 -105.0" -75.8r -42.6r -16.1" -28.2 -17.1 7.4 20 Insurance 199.0 257.4 181.6 234.3 164.5r 97.2r 185.4r 217.8r 157.8 291.4 175.5 248.2 21 Life insurance companies 104.0 101.8 94.4 83.2 82.4 73.7 66.9 85.1 103.7 122.1 108.0 103.0 22 Other insurance companies 29.2 29.7 26.5 32.3 12.7 28.8 16.4 -2.8 8.3 8.9 10.6 9.0 23 Private pension funds 29.2 81.1 17.2 85.3 37.3r -33.2r 74. lr 99.9" 8.4 118.0 11.1 86.3 24 State and local government retirement funds 36.6 44.7 43.5 33.5 32.2 27.8 28.0 35.6 37.4 42.4 45.9 49.9 25 Finance n.e.c 115.9 282.2 241.7 242.3 236.3r 211.9*" 194.9r 440.4r 98.2" 147.5 398.3 369.5 26 Finance companies 38.1 32.0 28.4 -12.1 1.7 —5.3 -16.0 4.0 24.0 -34.0 -22.8 5.7 27 Mortgage companies -7.4 6.1 -8.0 11.4 .1 23.0 -38.5 28.9 -12.8 -20.8 31.7 5.4 28 Mutual funds 11.9 23.8 41.4 90.3 123.7R 95.1 123.7R 156.9" 119.2" 130.2 193.4 171.2 29 Closed-end funds 19.8 6.3 .0 15.2 12.3 17.9 9.4 8.7 13.1 8.9 13.0 11.0 30 Money market funds 10.7 67.1 80.9 30.1 1.3 19.1 3.8r 8.5" -26.1" -65.0 51.8 44.6 31 Real estate investment trusts (REITs) .9 .5 -.7 -1.0 ,4r -.7r 2.6 -.3 -.1 2.9 .8 1.3 32 Brokers and dealers -8.2 96.3 34.9 49.0 40.2 -2.4 73.0 180.3 -90.2 79.5 66.7 55.5 33 Asset-backed securities (ABSs) 35.9 27.7 49.9 49.0 48.6 33.0 45.2 62.6 53.6 46.7 49.4 75.3 34 Bank personal trusts 14.3 22.4 14.8 10.4 8.0 32.2 -8.4 -9.3 17.3 -.9 14.4 -.5 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Net flows through credit markets 998.8 946.8 848.4 639.8 816.0" 772.8r 850.2r 943.0r 698.1" 598.1 824.5 1,024.9 Other financial sources 36 Official foreign exchange 4.0 24.8 2.0 -5.9 -1.6 3.5 -6.5 -8.5 5.1 3.4 -3.5 4.2 37 Treasury currency and special drawing rights .5 4.1 2.5 .0 -1.8 .1 .3 .2 -7.7 .3 .4 .4 38 Life insurance reserves 25.3 28.8 25.7 25.7 28.4 33.8 22.7 27.3 29.8 51.4 41.0 39.4 39 Pension fund reserves 140.1 309.7 158.1 358.8 214.8r 129.0r 194.4r 278.5r 257.4" 340.7 199.8 273.0 40 Interbank claims 2.9 -16.5 34.2 -3.7 49.0" 25.7r 36.9" 82.3R 51.1" 17.7 54.9 -19.8 41 Deposits at financial institutions 278.6 284.8 98.1 48.2 9.3 -.7 6.3r 174.lr -142.7" -8.2 247.2 70.3 42 Checkable deposits and currency 43.2 6.1 44.2 75.8 122.8r 86.4 110.8r 200.4r 93.5" 25.0 232.2 96.4 43 Small time and savings deposits 121.6 100.4 59.0 16.7 -60.8 -40.1 -81.8 -83.6 -37.8" -158.9 -54.2 -87.1 44 Large time deposits 53.1 13.9 -65.7 -60.8 -80.0 -72.9 -109.9 -52.9 -84.2 1.9 -17.5 -57.3 45 Money market fund shares 21.9 90.1 70.3 41.2 3.9 44.4 26.7r —22.4r -32.9" -37.7 66.8 57.2 46 Security repurchase agreements 23.7 77.8 -24.2 -16.5 33.6 8.1 103.7 89.6 -67.1 180.3 17.6 86.4 47 Foreign deposits 15.2 -3.6 14.6 -8.2 -10.2 -26.6 -43.2 43.0 -14.2 -18.8 2.4 -25.2 48 Mutual fund shares 6.1 38.5 67.9 150.5 206.7r 174.4 199.5r 235.2r 217.7" 240.9 357.5 340.3 49 Corporate equities -104.7 -98.1 -45.7 60.1 75.8r 99.9" 64.6R 58. lr 80.7" 51.2 104.4 157.6 50 Security credit 3.0 15.6 3.5 51.4 4.2 -66.7 -4.9 82.8 5.5 39.7 38.3 34.8 51 Trade debt 89.6 59.4 32.1 -2.2 57.9 79.8 56.5 57.8 37.5 27.3 42.5 42.4 52 Taxes payable 5.3 2.0 -4.5 -8.5 7.7 8.5 6.1 6.5 9.9 9.6 11.3 4.1 53 Noncorporate proprietors' equity -24.0 -31.1 -35.5 -12.5 -10.7R -25.8R 12.3r —33.2r 4.0" 3.6 -7.2 -28.7 54 Investment in bank personal trusts 7.2 23.1 21.5 29.8 -7.5 40.2 20.2 -55.4 -35.2 -10.1 35.8 -23.0 55 Miscellaneous 199.2 292.1 98.2 169.9 196.4R 93. LR 272.6R 209.0" 210.9" 233.2 355.1 228.7 56 Total financial sources 1,632.0 1,883.8 1,306.5 1,501.3 l,644.7r l,367.6r l,731.2r 2,057.7r l,422.3r 1,598.7 2,302.0 2,148.7 Floats not included in assets (-) 57 U.S. government checkable deposits 1.6 8.4 3.3 -13.1 .7 11.3 -9.5 4.4 -3.6 .1 6.2 -5.1 58 Other checkable deposits .8 -3.2 2.5 2.0 1.6 13.8 2.0 -11.7 2.3 -1.8 -1.4 -5.6 59 Trade credit -6.2 -1.9 2.5 8.1 21.5R 25.0 11.3 44.0" 5.7 -21.8 8.7 3.9 Liabilities not identified as assets (-) 60 Treasury currency -.1 -.2 .2 -.6 -.2 -.3r -.2" -.2" -.1 -.2 -.2 -.2 61 Interbank claims -3.0 -4.4 1.6 26.2 -4.0 8.2 -18.2 -5.3 -.6 9.3 -.3 -14.8 62 Security repurchase agreements -29.6 32.4 -31.5 5.2 31.1 -26.7 84.1 43.5" 23.4" 155.2 25.4 78.6 63 Taxes payable 6.3 2.3 .5 .4 6.7 -7.6 7.0 23.8 3.7 -11.2 23.2 5.3 64 Miscellaneous 47.3 -77.8 -23.6 -32.1 -15.4R -60.5" -62.9T 11.9" 49.9" 29.5 -31.0 -21.9 65 Total identified to sectors as assets 1,614.8 1,928.2 1,351.0 1,505.2 l,602.7r l,404.4r l,717.6r l,947.4r 1,341.6^ 1,439.5 2,271.5 2,108.5 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables F.6 and F.7. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 Q1 Q2 Q3 Q4 Ql" Q2" Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 10,054.3 10,692.0 11,160.6 11,746.9" 11,289.2" 11,427.0" 11,580.3" 11,746.9" 11,823.0 11,979.2 12,125.4 By lending sector and instrument 2 U.S. government 2,251.2 2,498.1 2,776.4 3,080.3 2,859.7 2,923.3 2,998.9 3,080.3 3,140.2 3,201.2 3,247.3 3 Treasury securities 2,227.0 2,465.8 2,757.8 3,061.6 2,844.0 2,907.4 2,980.7 3,061.6 3,120.6 3,180.6 3,222.6 4 Agency issues and mortgages 24.2 32.4 18.6 18.8 15.8 15.9 18.1 18.8 19.6 20.6 24.7 5 Private 7,803.1 8,193.9 8,384.3 8,666.5" 8,429.4" 8,503.7" 8,581.5" 8,666.5" 8,682.9 8,777.9 8,878.2 By instrument 6 Tax-exempt obligations 1,004.7 1,062.1 1,131.6 1,197.3 1,145.5 1,163.7 1,186.4 1,197.3 1,210.0 1,225.7 11,,223399..55 7 Corporate bonds 961.1 1,008.2 1,086.9 1,154.2 1,106.0 1,125.4 1,140.8 1,154.2 1,172.9 1,189.2 1,203.0 8 Mortgages 3,512.8 3,715.4 3,880.4 4,001.9" 3,918.1" 3,941.5" 3,979.7" 4,001.9" 4,017.9 4,057.6 4,117.6 9 Home mortgages 2,380.5 2,580.6 2,746.6 2,922.7" 2,791.8" 2,825.6" 2,880.8" 2,922.7" 2,945.8 2,996.0 3,057.6 10 Multifamily residential 304.3 305.5 303.0 291.9 305.9 301.7" 298.9" 291.9 290.3 287.1 287.1 11 Commercial 747.6 750.8 751.7 706.5" 740.3" 733.8 719.4 706.5" 701.1 693.8 692.1 12 Farm 80.5 78.4 79.1 80.7" 80.2" 80.4" 80.6" 80.7" 80.8 80.8 80.9 13 Consumer credit 799.5 813.0 799.9 809.2 777.6 776.9 784.5 809.2 793.7 802.3 821.7 14 Bank loans n.e.c 750.8 747.8 701.0 695.6" 685.5" 694.0" 686.2" 695.6" 683.0 691.9 691.9 15 Commercial paper 107.1 116.9 98.5 107.1 110.4 112.0 108.2 107.1 114.6 125.0 124.3 16 Other loans 667.0 730.6 685.9 701.2" 686.2" 690.1" 695.8" 701.2" 690.8 686.2 680.2 By borrowing sector 17 Household 3,371.4 3,594.8 3,762.7 3,978.0" 3,782.6 3,837.3" 3,900.0" 33,,997788..00"" 3,982.2 4,046.8 44,,113355..11 18 Nonfinancial business 3,615.7 3,728.5 3,688.7 3,696.3" 3,701.5" 3,705.4" 3,698.3" 3,696.3" 3,693.6 3,708.0 3,704.9 19 Farm 134.4 134.9 134.8 136.3" 133.6" 137.0" 137.9" 136.3" 133.5 136.8 138.8 7.0 Nonfarm noncorporate 1,199.6 1.219.0 1,192.3 1,154.5" 1,187.6" 1,177.3" 1,165.1" 1,154.5" 1,144.2 1,138.3 1,132.0 21 Corporate 2,281.7 2,374.6 2,361.6 2,405.5" 2,380.3" 2,391.1" 2,395.3" 2,405.5" 2,415.9 2,432.9 2,434.0 22 State and local government 816.1 870.5 932.8 992.2 945.3 961.0 983.1 992.2 1,007.1 1,023.2 1,038.2 23 Foreign credit market debt held in United States 261.2 285.1 298.9 313.8 288.7 304.7 312.9 313.8 324.8 333.1 335511..55 74 Bonds 94.1 115.4 129.5 146.9 130.8 136.2 141.3 146.9 165.8 173.4 194.8 75 Bank loans n.e.c 21.4 18.5 21.6 23.9 22.0 25.5 26.5 23.9 24.3 25.9 26.2 26 Open market paper 63.0 75.3 81.8 77.7 70.5 77.4 80.7 77.7 72.3 72.1 71.7 27 U.S. government loans 82.7 75.8 66.0 65.4 65.5 65.6 64.4 65.4 62.5 61.7 58.8 78 Total credit market debt owed by nonfinancial sectors, domestic and foreign 10,315.5 10,977.1 11,459.5 12,060.7" 11,577.9" 11,731.8" 11,893.2" 12,060.7" 12,147.9 12,312.3 1122,,447766..99 Financial sectors 29 Total credit market debt owed by financial sectors 2,362.7 2,559.4 2,709.7 2,928.5" 2,751.2 2,805.7" 2,877.4" 2,928.5" 2,961.7 2,997.3 33,,008877..66 By instrument 30 U.S. government-related 1,247.8 1,418.4 1,564.2 1,720.0 1,590.3 1,641.6 1,683.5 1,720.0 1,755.8 1,774.5 11,,884422..22 31 Government-sponsored enterprises securities 373.3 393.7 402.9 443.1 405.7 417.8 434.7 443.1 451.2 446688..44 551100..33 32 Mortgage pool securities 869.5 1,019.9 1,156.5 1,272.0 1,179.8 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 1,327.1 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 1,208.5" 1,160.9 1,164.1" 1,193.9" 1,208.5" 1,205.9 1,222.9 1,245.4 35 Corporate bonds 509.1 549.9 606.6 665.0" 613.8 628.6 646.4" 665.0" 680.0 693.9 715.4 36 Mortgages 4.0 4.3 5.1 5.1 5.0 5.0" 5.1" 5.1 5.4 6.0 6.6 37 Bank loans n.e.c 50.9 52.0 69.1 64.2 72.7 63.1 67.5" 64.2 56.9 55.8 52.8 38 Open market paper 409.1 417.7 385.7 394.3 393.2 390.5 394.6 394.3 378.7 375.1 371.7 39 Loans from Federal Home Loan Banks 141.8 117.1 79.1 79.9 76.3 76.9 80.2 79.9 85.0 92.1 98.9 By borrowing sector 40 Government-sponsored enterprises 378.3 398.5 407.7 447.9 410.5 422.6 439.5 447.9 456.0 473.2 551155..11 41 Federally related mortgage pools 869.5 1,019.9 1,156.5 1,272.0 1,179.8 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 1,327.1 42 Private financial sectors 1,114.8 1,140.9 1,145.6 1,208.5" 1,160.9 1,164.1" 1,193.9" 1,208.5" 1,205.9 1,222.9 1,245.4 43 Commercial banks 77.4 76.7 65.0 73.8 63.8 66.2 69.0 73.8 73.1 76.6 77.9 44 Bank affiliates 142.5 114.8 112.3 114.6 115.0 112.7 114.4 114.6 119.9 120.2 119.9 45 Funding corporations 125.4 137.9 124.3 135.2" 137.6 144.9" 143.0" 135.2" 127.1 128.9 125.0 46 Savings institutions 169.2 139.1 94.6 87.8 89.8 87.6 89.2 87.8 90.3 93.4 96.8 47 Credit unions .0 .0 .0 .0 .0 .0 .0 .0 .0 .1 .2 48 Life insurance companies .0 .0 .0 .0 .0 .0 .0 .0 .0 .2 .1 49 Finance companies 350.4 374.4 393.0 389.4 382.2 377.4 382.7 389.4 379.1 369.8 372.2 50 Mortgage companies 11.3 7.3 13.0 13.0 19.8 11.0 14.6 13.0 10.4 14.4 15.0 51 Real estate investment trusts (REITs) 11.4 12.4 14.0 14.1 14.4 14.8" 15.3" 14.1 13.7 14.4 15.3 52 Securitized credit obligation (SCO) issuers... 227.3 278.3 329.4 380.5" 338.2 349.5 365.7" 380.5" 392.3 404.9 423.1 All sectors 53 Total credit market debt, domestic and foreign.. 12,678.2 13,536.5 14,169.3 14,989.2" 14,329.1" 14,537.5" 14,770.6" 14,989.2" 15,109.5 15,309.6 15,564.5 54 U.S. government securities 3,494.1 3,911.7 4,335.7 4,795.5 4,445.2 4,560.1 4,677.6 4,795.5 4,891.2 4,970.9 5,084.7 55 Tax-exempt securities 1,004.7 1,062.1 1,131.6 1,197.3 1,145.5 1,163.7 1,186.4 1,197.3 1,210.0 1,225.7 1,239.5 56 Corporate and foreign bonds 1,564.3 1,673.5 1,823.1 1,966.1" 1,850.5 1,890.2 1,928.5" 1,966.1" 2,018.7 2,056.4 2,113.1 57 Mortgages 3,516.8 3,719.7 3,885.5 4,007.0" 3,923.2" 3,946.6" 3,984.8" 4,007.0" 4,023.3 4,063.7 4,124.2 58 Consumer credit 799.5 813.0 799.9 809.2 777.6 776.9 784.5 809.2 793.7 802.3 821.7 59 Bank loans n.e.c 823.0 818.3 791.7 783.7" 780.2" 782.7" 780.2" 783.7" 764.3 773.6 770.9 60 Open market paper 579.2 609.9 565.9 579.0 574.1 579.9 583.6 579.0 565.5 572.2 567.8 61 Other loans 896.5 928.4 835.8 851.3" 832.8" 837.4" 845.1" 851.3" 843.0 844.8 842.7 Digitized for FRASER http://fraser.stloui1s. fDeadt.ao irng t/h is table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics • March 1994 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 QL Q2 Q3 Q4 Ql" Q2" Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 12,678.2 13,536.5 14,169.3 14,989.2R 14,329.1" 14,537.5" 14,770.6" 14,989.2" 15,109.5 15,309.6 15,564.5 2 Private domestic nonfinancial sectors 2,096.4 2,246.8 2,205.8 2,290.7r 2,211.4" 2,233.1" 2,221.6" 2,290.7" 2,247.6 2,200.2 2,165.4 3 Households 1,326.8 1,454.6 1,380.0 1,436.0" 1,388.9" 1,395.2" 1,381.1" 1,436.0" 1,405.4 1,348.0 1,316.8 4 Nonfarm noncorporate business 56.5 54.9 50.7 48.3 49.3 48.7 48.1 48.3 47.0 46.3 45.6 5 Nonfinancial corporate business 181.2 175.8 180.1 216.4 180.0 192.6 199.5 216.4 208.6 216.3 218.1 6 State and local governments 531.9 561.5 595.1 590.0 593.3 596.6 592.9 590.0 586.5 589.6 584.9 7 U.S. government 205.4 239.1 247.0 235.1 251.2 246.3 239.2 235.1 229.5 223.4 219.0 8 Foreign 778.7 897.5 936.2 l,031.1r 960.4" 995.6" 1,015.1" 1,031.1" 1,040.9 1,063.3 1,099.3 9 Financial sectors 9,597.7 10,153.1 10,780.3 11,432.2" 10,906.0" 11,062.5" 11,294.7" 11,432.2" 11,591.6 11,822.8 12,080.9 10 Government-sponsored enterprises 355.4 371.8 397.7 466.7" 419.9 429.0 446.3 466.7" 464.1 499.2 538.9 11 Federally related mortgage pools 869.5 1,019.9 1,156.5 1,272.0 1,179.8 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 1,327.1 12 Monetary authority 233.3 241.4 272.5 300.4 271.8 282.6 285.2 300.4 303.6 318.2 324.2 13 Commercial banking 2,647.4 2,772.5 2,856.8 2,951.6 2,864.5 2,887.6 2,928.2 2,951.6 2,960.9 3,003.2 3,040.4 14 U.S. commercial banks 2,371.9 2,466.7 2,506.0 2,575.7 2,517.3 2,525.2 2,560.0 2,575.7 2,594.6 2,633.8 2,674.8 15 Foreign banking offices 242.3 270.8 319.2 335.8 313.3 328.2 328.9 335.8 326.7 327.1 322.3 16 Bank holding companies 16.2 13.4 11.9 17.5 13.6 13.1 17.5 17.5 16.4 18.4 18.8 17 Banks in U.S. affiliated areas 17.1 21.6 19.7 22.5 20.2 21.0 21.8 22.5 23.3 23.9 24.5 18 Private nonbank finance 5,491.9 5,747.4 6,096.7 6,441.5" 6,170.1" 6,244.3" 6,391.0" 6,441.5" 6,563.2 6,700.9 6,850.4 19 Thrift institutions 1,475.4 1,324.6 1,197.3 1,140.9" 1,172.0" 1,154.1" 1,145.1" 1,140.9" 1,131.2 1,128.0 1,131.5 20 Insurance 2,320.7 2,473.7 2,708.0 2,872.5" 2,736.6" 2,787.4" 2,841.7" 2,872.5" 2,950.2 2,999.2 3,061.1 21 Life insurance companies 1,022.0 1,116.5 1,199.6 1,282.0 1,222.3 1,243.6 1,264.7 1,282.0 1,317.3 1,349.5 1,375.1 22 Other insurance companies 317.5 344.0 376.3 389.0 383.5 387.6 386.9 389.0 391.2 393.8 396.1 23 Private pension funds 590.2 607.4 692.7 730.0" 684.4" 702.9" 727.9" 730.0" 759.5 762.2 783.8 24 State and local government retirement funds... 390.9 405.9 439.4 471.6 446.3 453.3 462.2 471.6 482.2 493.7 506.1 25 Finance n.e.c 1,695.9 1,949.1 2,191.5 2,428.0" 2,261.5 2,302.8" 2,404.1" 2,428.0" 2,481.8 2,573.6 2,657.8 26 Finance companies 468.6 497.0 484.9 486.6 479.5 480.5 477.8 486.6 473.7 473.5 471.4 27 Mortgage companies 22.6 14.6 25.9 26.1 31.7 22.1 29.3 26.1 20.9 28.8 30.1 28 Mutual funds 307.2 360.2 450.5 574.2" 478.8 510.2" 550.2" 574.2" 611.4 659.9 704.3 29 Closed-end funds 37.1 37.1 52.4 64.6 56.8 59.2 61.3 64.6 66.9 70.1 72.8 30 Money market funds 291.8 372.7 402.7 404.1 424.0 412.0" 408.2" 404.1 404.5 404.0 409.0 31 Real estate investment trusts (REITs) 8.4 7.7 6.8 7.4 6.8 7.5 7.4 7.4 8.1 8.3 8.6 32 Brokers and dealers 142.9 177.9 226.9 267.1 226.3 244.6 289.6 267.1 287.0 303.6 317.5 33 Asset-backed securities (ABSs) 219.3 269.1 318.1 366.7 326.3 337.6 353.3 366.7 378.4 390.7 409.5 34 Bank personal trusts 198.0 212.9 223.3 231.2 231.3 229.2 226.9 231.2 231.0 234.6 234.5 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Total credit market debt 12,678.2 13,536.5 14,169.3 14,989.2" 14,329.1" 14,537.5" 14,770.6" 14,989.2" 15,109.5 15,309.6 15,564.5 Other liabilities 36 Official foreign exchange 53.6 61.3 55.4 51.8 52.7 54.4 55.4 51.8 54.5 53.9 55.6 37 Treasury currency and special drawing rights certificates 23.8 26.3 26.3 24.5 26.3 26.4 26.5 24.5 24.6 24.7 24.8 38 Life insurance reserves 354.3 380.0 405.7 434.1 414.2 419.8 426.7 434.1 447.0 457.2 467.1 39 Pension fund reserves 3,356.1 3,400.3 4,056.5 4,369.8" 4,048.2" 4,105.0" 4,228.5" 4,369.8" 4,509.1 4,570.4 4,710.7 40 Interbank claims 32.4 64.0 65.2 114.0" 63.0" 68.5" 101.3" 114.0" 109.9 118.5 129.4 41 Deposits at financial institutions 4,736.7 4,836.8 4,885.2 4,892.1 4,878.6 4,870.6" 4,909.3" 4,892.1 4,885.9 4,934.2 4,949.2 42 Checkable deposits and currency 888.6 932.8 1,008.5 1,131.0 984.3 1,032.9" 1,072.0" 1,131.0 1,092.2 1,169.1 1,182.6 43 Small time and savings deposits 2,277.4 2,336.3 2,353.0 2,292.2 2,351.3 2,325.8 2,303.7 2,292.2 2,261.2 2,242.3 2,219.4 44 Large time deposits 603.4 537.7 476.9 397.2 459.2 427.5 418.4 397.2 398.3 389.9 379.7 45 Money market fund shares 428.1 498.4 539.6 543.6 572.0 556.9" 552.9" 543.6 556.6 549.9 566.2 46 Security repurchase agreements 396.5 372.3 355.8 389.4 367.0 393.5 417.6 389.4 443.5 448.3 472.8 47 Foreign deposits 142.8 159.4 151.3 138.8 144.7 133.9 144.6 138.8 134.1 134.7 128.4 48 Mutual fund shares 566.2 602.1 813.9 1,042.1" 860.4 924.4" 965.6" 1,042.1" 1,134.6 1,225.8 1,342.1 49 Security credit 133.9 137.4 188.9 217.3 194.6 193.3 214.5 217.3 225.1 234.7 243.9 50 Trade debt 904.2 936.4 926.7 984.7 938.0 950.0 970.5 984.7 982.3 991.2 1,008.1 51 Taxes payable 81.8 77.4 68.9 76.6 73.1 70.7 74.5 76.6 81.3 79.8 83.3 52 Investment in bank personal trusts 503.2 509.9 596.7 619.1 612.9 612.7 610.9 619.1 625.0 635.6 643.6 53 Miscellaneous 2,591.1 2,732.4 2,884.3 3,056.2" 2,899.7" 2,957.3" 3,027.6" 3,056.2" 3,082.3 3,149.3 3,203.6 54 Total liabilities 26,015.5 27,300.7 29,143.0 30,871.4" 29,390.8" 29,790.7" 30,381.7" 30,871.4" 31,271.1 31,784.9 32,425.8 Financial assets not included in liabilities (+) 55 Gold and special drawing rights 21.0 22.0 22.3 19.6 22.0 22.7 23.2 19.6 19.8 20.0 20.3 56 Corporate equities 3,812.9 3,543.7 4,869.4 5,540.6 4,925.6 4,837.0 4,995.4 5,540.6 5,721.3 5,741.9 6,006.6 57 Household equity in noncorporate business 2,508.1 2,440.6 2,344.6 2,266.6" 2,351.4" 2,335.3" 2,313.9" 2,266.6" 2,237.6 2,237.4 2,225.1 Floats not included in assets (-) 58 U.S. government checkable deposits 6.1 15.0 3.8 6.8 .9 1.4 4.0 6.8 3.4 3.5 2.2 59 Other checkable deposits 26.5 28.9 30.9 32.5 29.5 32.6 23.3 32.5 27.2 29.6 21.7 60 Trade credit -148.6 -146.0 -144.1 -121.9" -142.7 -151.1 -144.2" -121.9" -132.1 -141.8 -144.6 Liabilities not identified as assets (—) 61 Treasury currency -4.3 -4.1 -4.8 -4.9" -4.8" -4.9 -4.9" -4.9" -5.0 -5.0 -5.1 62 Interbank claims -31.0 -32.0 -4.2 -8.4 -1.8 -4.0 -4.3 -8.4 -5.2 -3.9 -5.6 63 Security repurchase agreements 13.7 -17.7 -12.5 18.6 -4.8 19.6 33.1" 18.6 71.8 82.4 106.8 64 Taxes payable 20.6 17.8 15.5 22.2" 7.3" 13.1" 18.1" 22.2" 12.4 21.9 22.9 65 Miscellaneous -210.7 -213.4 -254.6 -251.3" -280.6" -282.1" -267.7" -251.3" -279.4 -274.6 -319.5 66 Total identified to sectors as assets 32,685.1 33,658.6 36,749.2 39,004.7" 37,086.8" 37,361.0" 38,056.8" 39,004.7" 39,556.7 40,072.2 40,999.0 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 11999911 11999922 11999933 Apr. May June July Aug/ Sept/ Oct/ Nov. Dec. 1 Industrial production1 104.1 106.5 111.0 110.4 110.2 110.5 110.8 111.0 111.4 112.1 113.2 114.0 Market groupings 7 Products, total 103.1 105.6 110.2 109.6 109.3 109.4 110.0 110.3 110.5 111.4 111122..44 111133..00 3 Final, total 105.3 108.2 113.5 112.8 112.5 112.7 113.2 113.5 113.8 114.8 115.9 116.6 4 Consumer goods 102.8 105.2 108.1 108.1 107.3 107.3 107.7 107.8 107.4 108.6 109.6 109.8 5 Equipment 108.9 112.7 121.2 119.7 119.9 120.4 121.2 121.6 122.9 123.8 125.2 126.6 6 Intermediate 96.5 97.6 100.1 100.0 99.7 99.4 100.4 100.6 100.4 101.0 101.8 101.9 7 Materials 105.5 107.9 112.2 111.5 111.6 112.1 112.0 112.2 112.7 113.2 114.3 115.5 Industry groupings 8 Manufacturing 103.7 106.9 111.9 111.4 111.3 111.3 111.6 111111..99 112.3 111133..22 111144..55 111155..33 9 Capacity utilization, manufacturing (percent)2 77.8 78.8 81.1 8800..99 80.7 80.6 80.7 8800..88 8811..00 8811..55 8822..33 8822..77 10 Construction contracts3 89.7 97.7 98.8 94.0 91.0 104.0 98.0 99.0 101.0 103.0 105.0 102.0 11 Nonagricultural employment, total4 n.a. n.a. n.a. 107.7 107.9 108.0 108.2 108.2 108.4 108.5 108.7 108.9 12 Goods-producing, total 96.6 94.9 n.a. 93.1 93.2 93.0 93.0 92.8 92.8 93.0 93.2 93.2 13 Manufacturing, total n.a. n.a. n.a. 94.0 93.8 93.5 93.5 93.3 93.2 93.2 93.4 93.4 14 Manufacturing, production workers ... 96.3 95.3 n.a. 94.0 93.8 93.5 93.5 93.2 93.2 93.3 93.6 93.6 15 Service-producing 109.3 110.0 n.a. 112.4 112.6 112.8 113.1 113.1 113.4 113.5 113.7 113.9 16 Personal income, total 127.6 135.3 n.a. 141.1 141.5 141.3 141.lr 142.9 143.1 144.1 145.0 n.a. 17 Wages and salary disbursements 124.5 131.5 n.a. 135.7 136.8 136.5 137.2r 138.2 138.0 138.7 139.2 n.a. 18 Manufacturing 113.7 117.8 n.a. 118.8 118.4 118.0 118.2 118.6 119.1 119.1 119.9 n.a. 19 Disposable personal income 128.6 136.8 n.a. 142.5 142.8 142.6 142.3r 144.1 144.4 145.4 146.4 n.a. 20 Retail sales6 121.3 127.1 135.3 133.0 133.9 134.6 135.2 136.2 136.5 139.3 139.7 140.9 Prices7 71 Consumer (1982-84= 100) 136.2 140.3 144.5 144.0 144.2 144.4 144.4 144.8 145.1 145.7 145.8 114455..88 22 Producer finished goods (1982=100) 121.7 123.2 124.7 125.5 125.8 125.5 125.3 124.2 123.9 124.7 124.4 124.1 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 11999911 11999922 11999933 May June July Aug. Sept.* Oct.* Nov. Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 191,329 193,142 195,035 194,767 194,933 195,104 195,275 195,453 195,626 195,791 195,933 ? Labor force1 126,867 128,548 129,525 129,559* 129,533* 129,573* 129,816* 129,590 130,055 130,132 130,359 3 Civilian labor force 125,303 126,982 128,040 128,075* 128,056* 128,102* 128,334* 128,108 128,580 128,662 128,898 4 Nonagricultural industries 114,644 114,391 116,232 116,106* 116,156* 116,327* 116,687* 116,475 116,920 117,218 117,565 5 Agriculture 3,233 3,207 3,074 3,074* 3,031* 3,043* 3,005* 3,093 3,021 3,114 3,096 Unemployment 6 Number 8,426 9,384 8,734 88,,889955** 88,,886699** 8,732* 8,642* 8,540 8,639 88,,333300 88,,223377 7 Rate (percent of civilian labor force) 6.7 7.4 6.8 6.9 6.9* 6.8 6.7 6.7 6.7 6.5 6.4 8 Not in labor force 64,462 64,594 65,510 65,208* 65,400* 65,531* 65,459* 65,863 65,571 65,659 65,574 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 108,256 108,519 110,171 110,058 110,101 110,338 110,305 110,502 110,664 110,866 111,049 10 Manufacturing 18,455 18,192 17,804 17,827 17,771 17,760 17,718 17,698 17,709 17,735 17,737 11 Mining 689 631 599 602 596 595 592 596 5% 594 603 17 Contract construction 4,650 4,471 4,571 4,577 4,574 4,593 4,593 4,592 4,629 4,663 4,662 N Transportation and public utilities 5,762 5,709 5,710 5,719 5,711 5,709 5,690 5,692 5,693 5,703 5,716 14 25,365 25,391 25,849 25,827 25,861 25,916 25,902 25,953 25,968 25,961 26,003 15 Finance 6,646 6,571 6,606 6,588 6,590 6,604 6,602 6,616 6,632 6,654 6,668 16 28,336 29,053 30,190 30,099 30,175 30,320 30,381 30,433 30,534 30,651 30,719 17 Government 18,402 18,653 18,842 18,819 18,823 18,841 18,827 18,922 18,903 18,905 18,941 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. Digitized for FR2 3 A. . SI I n n Ec c lR l u u d d e e s s s a e ll l f f - u e l m l- p a l n o d y e p d a , r u t- n t p im ai e d e f m am p i l l o y y , e a e n s d w d h o o m w e o st r i k c e s d e r d v u i r c i e n g w , o o r r k e r r e s c . e ived Ea S rn O in U g R s C . E. Based on data from U.S. Department of Labor, Employment and http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • March 1994 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1993 1993 1993 Q1 Q2 Q3r Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3r Q4 Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent)2 1 Total industry 109.7 110.4 111.1 113.1 134.8 135.3 135.9 136.4 81.4 81.6 81.8 82.9 2 Manufacturing 110.4 111.3 111.9 114.3 137.2 137.8 138.5 139.1 80.5 80.8 80.8 82.2 3 Primary processing3 106.4 107.2 107.7 109.2 126.8 127.1 127.4 127.7 83.9 84.3 84.5 85.5 4 Advanced processing 112.3 113.2 113.9 116.7 142.1 142.9 143.7 144.5 79.0 79.2 79.3 80.8 5 Durable goods 113.6 114.8 116.0 120.0 143.4 144.1 144.9 145.6 79.2 79.7 80.1 82.4 6 Lumber and products 99.7 97.3 99.9 104.2 112.6 112.7 112.9 113.0 88.5 86.3 88.5 92.3 7 Primary metals 105.0 104.8 105.8 107.1 124.9 124.9 124.9 124.9 84.1 83.9 84.7 85.7 8 Iron and steel 109.1 109.1 111.7 112.7 129.8 130.0 130.1 130.3 84.1 84.0 85.8 86.5 9 Nonferrous 99.3 98.8 97.7 99.3 118.1 117.9 117.7 117.5 84.1 83.8 83.1 84.5 10 Nonelectrical machinery 137.1 144.2 150.2 156.2 163.7 165.5 167.3 169.1 83.8 87.1 89.8 92.4 11 Electrical machinery 127.1 129.6 133.7 137.3 154.1 155.7 157.3 158.9 82.5 83.2 85.0 86.4 12 Motor vehicles and parts 120.6 117.6 111.7 131.7 155.8 156.8 157.7 158.7 77.4 75.0 70.8 83.0 13 Aerospace and miscellaneous transportation equipment . 95.7 93.2 91.3 88.9 135.7 135.5 135.4 135.2 70.5 68.8 67.4 65.8 14 Nondurable goods 106.5 107.0 106.9 107.3 129.6 130.1 130.6 131.1 82.2 82.3 81.9 81.8 15 Textile mill products 106.2 106.1 106.8 106.6 116.9 117.1 117.3 117.5 90.8 90.6 91.0 90.7 16 Paper and products 110.0 113.1 112.1 112.8 122.5 122.9 123.3 123.7 89.8 92.0 90.9 91.2 17 Chemicals and products 116.9 118.3 118.8 119.2 144.4 145.4 146.3 147.3 80.9 81.4 81.2 80.9 18 Plastics materials 111.7 113.1 111.9 129.5 130.5 131.5 86.2 86.7 85.1 19 Petroleum products 104.2 103.9 103.1 107.7 115.9 115.7 115.4 115.2 89.9 89.8 89.3 93.5 20 Mining 96.5 97.2 96.5 97.8 111.7 111.5 111.3 111.1 86.3 87.2 86.7 88.1 21 Utilities 116.0 113.8 116.7 115.5 132.2 132.5 132.9 133.2 87.8 85.9 87.8 86.7 22 Electric 115.2 114.7 117.4 114.8 129.0 129.4 129.9 130.3 89.3 88.6 90.4 88.1 1973 1975 Previous cycle2 Latest cycle3 1992 1993 High Low High Low High Low Dec. July Aug. Sept.r Oct.r Nov.r Dec." Capacity utilization rate (percent)2 1 Total industry 99.0 82.7 87.3 71.8 84.8 78.3 81.0 81.7 81.7r 81.9 82.3 83.0 83.5 2 Manufacturing 99.0 82.7 87.3 70.0 85.1 76.6 79.8 80.7 80.8r 81.0 81.5 82.3 82.7 3 Primary processing3 99.0 82.7 89.7 66.8 89.1 77.9 82.9 84.5 84.8r 84.4 84.8 85.7 86.0 4 Advanced processing 99.0 82.7 86.3 71.4 83.3 76.1 78.6 79.2 79.2r 79.6 80.1 80.9 81.4 5 Durable goods 99.0 82.7 86.9 65.0 83.9 73.8 78.2 79.8 79.9r 80.6 81.4 82.5 83.4 6 Lumber and products 99.0 82.7 87.6 60.9 93.3 76.8 87.1 87.8 88.6r 89.2 92.0 92.2 92.5 7 Primary metals 99.0 82.7 102.4 46.8 92.9 74.3 82.0 84.3 85.0" 84.8 84.1 85.7 87.3 8 Iron and steel 99.0 82.7 110.4 38.3 95.7 72.3 82.7 86.0 86. lr 85.3 86.3 85.3 87.9 9 Nonferrous 99.0 82.7 90.5 62.2 88.9 75.9 80.9 81.8 83.3r 84.1 80.7 86.4 86.5 10 Nonelectrical machinery 99.0 82.7 92.1 64.9 83.7 73.0 82.3 89.1 89.6r 90.6 91.2 92.4 93.6 11 Electrical machinery 99.0 82.7 89.4 71.1 84.9 76.8 81.6 84.4 84.8r 85.7 85.9 86.3 87.0 12 Motor vehicles and parts 99.0 82.7 93.0 44.5 84.5 57.9 74.9 70.0 69.7r 72.8 78.4 83.4 87.3 13 Aerospace and miscellaneous transportation equipment. 99.0 82.7 81.1 66.9 88.3 78.1 71.5 67.9 67.5r 66.9 66.2 65.8 65.3 14 Nondurable goods 99.0 82.7 87.0 76.9 86.8 80.4 82.0 82.0 82. lr 81.5 81.7 82.0 81.8 15 Textile mill products 99.0 82.7 91.7 73.8 92.1 78.7 90.8 91.8 91.5r 89.8 90.7 90.5 90.8 16 Paper and products 99.0 82.7 94.2 82.0 94.9 86.0 88.6 90.9 91T 90.1 90.5 92.0 91.1 17 Chemicals and products 99.0 82.7 85.1 70.1 85.9 78.5 81.2 81.3 81.4r 80.8 80.4 81.2 81.3 18 Plastics materials 99.0 82.7 90.9 63.4 97.0 75.5 80.5 85.0 85.6 84.7 84.5 19 Petroleum products 99.0 82.7 89.5 68.2 88.5 84.2 89.1 88.7 88.7 90.4 93.6 93.9 93.0 20 Mining 99.0 82.7 96.6 80.6 87.0 86.8 87.8 86.5 85.8 87.8 88.4 87.7 88.2 21 Utilities 99.0 82.7 88.3 76.2 92.6 83.4 88.5 88.1 88.6r 86.7 86.1 86.6 87.5 22 Electric 99.0 82.7 88.3 78.7 94.8 87.4 90.4 91.1 91.5 88.5 87.2 88.1 89.0 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 1993 GGrroouupp por- AVG. tion Dec. Jan. Feb. Mar. Apr. May June July Aug/ Sept/ Oct/ NNoovv// DDeecc.."" Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 111.0 108.9 109.3 109.9 110.1 110.4 110.2 110.5 110.8 111.0 111.4 112.1 113.2 114.0 ? 60.8 110.2 108.2 108.5 109.2 109.5 109.6 109.3 109.4 110.0 110.3 110.5 111.4 112.4 113.0 Final products 46.0 113.5 111.5 111.9 112.4 112.7 112.8 112.5 112.7 113.2 113.5 113.8 114.8 115.9 116.6 4 Consumer goods, total 26.0 108.1 107.5 107.6 108.5 108.6 108.1 107.3 107.3 107.7 107.8 107.4 108.6 109.6 109.8 Durable consumer goods 5.6 111.3 107.9 110.9 111.3 111.5 112.2 110.8 107.9 108.6 107.9 109.3 113.4 117.0 118.6 6 Automotive products 2.5 110.6 108.7 112.7 111.9 111.2 112.1 109.7 105.3 103.3 103.0 105.6 112.9 119.5 123.4 7 Autos and trucks 1.5 112.2 111.7 116.8 114.6 113.4 114.3 110.1 105.0 100.3 99.2 104.1 114.9 124.9 131.5 8 Autos, consumer .9 86.1 86.9 86.6 90.2 90.5 90.2 86.5 83.5 78.2 71.8 75.4 85.2 95.4 9988..88 9 Trucks, consumer .6 157.3 154.6 169.1 156.9 153.1 155.9 150.9 142.3 138.6 146.7 153.9 166.4 176.0 118888..00 10 Auto parts and allied goods... 1.0 108.0 103.8 105,8 107.4 107.5 108.5 109.1 105.8 108.4 109.3 108.1 109.5 110.4 109.9 11 Other 3.1 111.9 107.2 109.3 110.7 111.7 112.3 111.8 110.2 113.2 112.2 112.5 113.8 114.9 114.4 17 Appliances, A/C, and TV .8 122.9 110.5 116.0 117.6 125.0 124.3 121.1 116.1 127.3 123.8 125.9 129.6 131.9 128.5 N Carpeting and furniture .9 107.8 105.4 105.5 106.7 104.5 106.2 108.9 109.1 109.9 108.3 107.3 109.0 108.6 109.4 14 Miscellaneous home goods ... 1.4 108.3 106.6 108.0 109.5 108.9 109.6 108.4 107.6 107.4 108.1 108.2 108.0 109.3 109.6 15 Nondurable consumer goods 20.4 107.2 107.4 106.7 107.7 107.7 106.9 106.3 107.2 107.4 107.8 106.9 107.3 107.4 107.2 16 Foods and tobacco 9.1 104.5 104.8 104.6 105.5 104.3 103.9 104.3 104.7 104.9 105.5 104.2 104.8 104.5 104.4 17 Clothing 2.6 93.7 96.0 95.7 95.0 94.6 94.9 94.2 94.6 93.6 93.3 92.6 92.6 92.9 92.5 18 Chemical products 3.5 123.3 121.7 122.4 121.1 123.7 123.1 122.6 123.0 124.0 123.8 124.0 123.0 124.2 124.3 19 Paper products 2.5 100.9 100.9 100.2 101.8 102.1 101.7 101.8 102.6 101.3 100.8 100.8 101.3 100.6 99.4 ?0 Energy 2.7 114.0 114.4 109.5 115.5 116.0 111.5 107.4 110.4 112.9 114.7 112.9 114.6 115.4 115.7 71 Fuels .7 108.3 106.1 106.5 108.9 107.1 106.6 106.5 105.8 105.0 104.0 108.2 113.1 114.6 112.0 22 Residential utilities 2.0 116.2 117.5 110.7 118.0 119.5 113.4 107.7 112.2 116.0 118.9 114.7 115.1 115.7 117.1 n Equipment 20.0 121.2 117.2 118.1 118.0 118.7 119.7 119.9 120.4 121.2 121.6 122.9 123.8 125.2 126.6 74 Business equipment 13.9 137.0 129.6 131.2 131.7 133.4 134.8 135.4 136.1 137.1 137.6 139.4 140.8 142.9 144.9 75 Information processing and related .. 5.6 156.2 143.2 144.4 146.1 149.1 150.6 153.5 155.7 158.2 158.8 161.5 162.3 164.9 168.2 76 Office and computing 1.9 223.6 186.4 192.0 198.0 203.3 209.5 216.5 221.0 226.5 232.0 237.1 241.8 247.9 255.0 71 Industrial 4.0 115.8 112.3 113.1 112.2 113.7 115.0 115.0 115.6 117.2 117.3 117.8 117.6 118.5 119.5 ?8 Transit 2.5 141.2 144.1 146.7 146.5 145.0 145.0 142.5 138.0 133.2 132.5 135.3 141.3 145.7 147.7 79 Autos and trucks 1.2 134.5 131.4 136.7 136.8 135.8 136.2 133.1 127.2 118.9 119.6 126.5 139.6 150.5 154.9 30 Other 1.9 119.1 109.2 112.6 113.4 114.9 117.5 116.2 117.6 119.6 121.9 123.1 124.5 125.0 125.5 31 Defense and space equipment 5.4 78.7 82.5 82.0 81.5 80.7 80.5 79.5 78.6 78.6 78.0 77.5 76.9 76.6 76.1 3? Oil and gas well drilling .6 82.5 91.2 89.0 77.9 71.1 72.4 75.1 82.4 81.0 87.8 90.5 88.9 85.7 85.0 33 Manufactured homes .2 128.6 129.4 127.1 116.2 114.9 112.1 113.6 118.5 116.2 120.6 127.7 138.4 34 Intermediate products, total 14.7 100.1 98.3 98.2 99.3 99.6 100.0 99.7 99.4 100.4 100.6 100.4 101.0 101.8 101.9 35 Construction supplies 6.0 98.1 94.5 94.8 97.5 96.4 96.4 97.7 96.8 98.4 98.7 99.3 99.9 100.7 101.3 36 Business supplies 8.7 101.5 100.8 100.5 100.5 101.8 102.5 101.0 101.1 101.7 101.8 101.2 101.6 102.5 102.2 37 39.2 112.2 110.0 110.4 110.9 110.9 111.5 111.6 112.1 112.0 112.2 112.7 113.2 114.3 115.5 38 Durable goods materials 19.4 116.0 111.9 113.3 114.2 114.1 114.9 114.8 114.9 115.4 115.8 117.2 118.2 119.7 121.7 39 Durable consumer parts 4.2 112.7 107.5 110.8 111.8 112.2 112.6 111.6 110.2 109.8 110.3 112.0 114.2 118.6 123.6 40 Equipment parts 7.3 125.1 119.7 120.4 121.0 121.3 122.7 123.5 124.1 124.9 126.2 128.0 129.2 129.6 131.5 41 Other 7.9 109.9 107.5 108.6 109.7 108.9 109.5 109.2 109.4 110.2 109.7 110.6 110.8 111.9 112.8 4? Basic metal materials 2.8 111.4 108.8 110.4 113.2 109.9 110.3 111.1 111.3 111.3 109.7 110.8 112.2 112.8 114.3 43 Nondurable goods materials 9.0 114.0 111.5 112.4 112.1 112.8 113.8 114.1 114.8 114.2 115.2 113.8 114.4 115.5 115.3 44 Textile materials 1.2 104.0 102.9 104.2 103.2 104.2 102.7 104.3 104.9 105.9 105.6 102.9 103.9 104.1 104.2 45 Pulp and paper materials 1.9 113.3 110.7 110.7 111.9 112.8 115.3 114.1 115.9 113.4 113.5 112.6 112.1 114.2 113.1 46 Chemical materials 3.8 117.5 114.6 114.9 114.6 115.6 116.1 117.2 118.6 117.3 119.5 117.9 118.0 119.1 119.8 47 Other 2.1 113.8 111.3 114.1 112.5 112.6 114.2 113.6 112.3 114.0 114.2 113.3 115.8 116.7 115.6 48 Energy materials 10.9 103.5 105.1 103.4 103.8 103.5 103.4 103.4 104.6 103.7 102.8 103.3 102.9 103.0 103.9 49 Primary energy 7.2 98.8 101.3 100.4 98.3 97.4 99.9 101.6 100.9 98.2 96.7 98.7 97.9 97.6 98.5 50 Converted fuel materials 3.7 112.6 112.4 109.1 114.6 115.4 110.3 106.8 111.7 114.5 114.9 112.4 112.7 113.8 114.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 110.7 108.6 108.9 109.5 109.7 110.1 110.0 110.4 110.9 111.1 111.3 111.8 112.6 113.2 52 Total excluding motor vehicles and parts ... 95.3 110.5 108.6 108.7 109.3 109.6 109.9 109.8 110.3 110.9 111.1 111.2 111.5 112.2 112.7 53 Total excluding office and computing machines 97.5 108.3 107.1 107.3 107.8 107.8 108.0 107.7 107.8 108.1 108.1 108.4 110099..00 111100..00 111100..66 54 Consumer goods excluding autos and 24.5 107.8 107.3 107.0 108.1 108.2 107.6 107.1 107.5 108.2 108.4 107.7 110088..22 110088..55 110088..22 55 Consumer goods excluding energy 23.3 107.5 106.8 107.4 107.7 107.7 107.6 107.3 107.0 107.1 107.0 106.8 108.0 108.9 109.1 56 Business equipment excluding autos and trucks 12.7 137.2 129.5 130.7 131.3 133.2 134.6 135.6 136.8 138.7 139.1 140.6 114400..99 114422..22 114444..11 57 Business equipment excluding office and computing equipment 12.0 122.4 120.1 121.0 120.6 121.6 122.2 121.8 121.8 122.1 121.7 123.0 112233..88 112255..22 112266..44 58 Materials excluding energy 28.4 115.4 111.8 113.0 113.6 113.7 114.6 114.6 114.9 115.1 115.6 116.1 117.0 118.4 119.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1994 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued „ 1987 1992 1993 roup SIC pro- 1993 code por- avg. tion Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r Oct/ Nov/ Dec.P Index (1987 = 100) MAJOR INDUSTRIES 59 Total index 100.0 111.0 108.9 109.3 109.9 110.1 110.4 110.2 110.5 110.8 111.0 111.4 112.1 113.2 114.0 60 Manufacturing 84.3 111.9 109.2 109.9 110.5 110.8 111.4 111.3 111.3 111.6 111.9 112.3 113.2 114.5 115.3 61 Primary processing 27.1 107.5 105.0 105.8 106.9 106.4 107.1 107.1 107.5 107.6 108.0 107.6 108.2 109.5 109.9 62 Advanced processing 57.1 113.9 111.3 111.9 112.2 112.9 113.4 113.3 113.0 113.5 113.7 114.5 115.6 116.8 117.8 63 Durable goods 46.5 115.9 111.8 112.9 113.8 114.1 115.0 114.9 114.6 115.4 115.7 117.0 118.3 120.1 121.7 64 Lumber and products... "24 2.1 100.0 98.0 99.3 101.8 98.0 98.1 97.4 96.5 99.1 99.9 100.7 104.0 104.2 104.6 65 Furniture and fixtures... 25 1.5 109.4 103.9 105.2 106.0 107.3 108.8 108.4 109.5 111.1 111.1 111111..33 111.4 111.5 111100..99 66 Clay, glass, and stone products 32 2.4 100.5 98.0 97.0 98.9 98.6 99.8 99.6 100.5 100.8 100.9 102.4 101.4 102.9 103.0 67 Primary metals 33 3.3 105.5 102.4 102.8 108.0 104.2 104.4 104.2 105.7 105.3 106.2 106.0 105.0 107.1 109.1 68 Iron and steel 331,2 1.9 110.5 107.4 107.0 112.9 107.6 108.4 108.1 110.9 111.9 112.1 111.1 112.4 111.1 114.6 69 Raw steel .1 104.6 103.4 105.9 102.0 102.6 105.1 106.8 108.2 106.2 105.3 106.7 106.8 70 Nonferrous 333-6,9 1.4 98^6 95.7 97.1 101.4 99.4 98.9 98.9 98.5 96.3 98.0 98.9 94.9 101.6 1100LL66 71 Fabricated metal products 34 5.4 100.9 97.8 99.8 99.7 100.3 101.4 100.6 100.1 101.2 101.0 110000..99 101.6 102.7 110033..33 72 Industrial and commercial machinery and computer equipment . 35 8.5 146.8 133.8 135.0 136.7 139.6 142.8 144.2 145.4 148.5 149.9 152.1 153.7 156.2 158.8 73 Office and computing machines 357 2.3 223.6 186.4 192.0 198.0 203.3 209.5 216.5 221.0 226.5 232.0 237.1 241.8 247.9 255.0 74 Electrical machinery 36 6.9 131.7 124.8 125.8 127.1 128.5 129.0 129.7 130.1 132.3 133.5 113355..22 136.0 137.2 138.7 75 Transportation equipment 37 9.9 105.6 106.3 108.4 107.8 106.9 106.9 105.5 102.6 100.8 100.4 102.4 106.3 110.0 112.7 76 Motor vehicles and parts 371 4.8 120.1 116.2 120.9 120.7 120.1 120.4 118.1 114.3 110.1 110.0 111155..00 124.1 113322..33 138.8 77 Autos and light trucks 2.2 114.9 114.4 118.2 117.8 116.9 117.5 113.1 108.2 102.8 104.0 110044..88 116.3 112277..33 133.5 78 Aerospace and miscellaneous transportation equipment... 372-6,9 5.1 92.0 97.1 96.7 95.8 94.6 94.2 93.7 91.8 92.0 91.3 90.5 89.5 89.0 88.2 79 Instruments 38 5.1 102.2 103.3 103.0 102.2 103.3 102.6 102.5 102.5 102.8 101.3 102.0 101.7 101.5 102.1 80 Miscellaneous 39 1.3 113.1 111.8 110.9 111.9 112.6 114.3 113.1 112.1 112.3 112.5 114.3 113.7 114.3 115.1 81 Nondurable goods 37.8 106.8 106.0 106.4 106.4 106.6 106.9 106.9 107.2 107.0 107.3 106.5 107.0 107.6 107.4 82 Foods "20 8.8 106.9 106.2 105.9 106.9 106.7 106.7 106.7 107.1 107.2 107.8 107.3 107.8 107.2 107.0 83 Tobacco products 21 1.0 91.1 96.1 100.5 99.3 92.4 90.2 92.1 89.1 91.5 92.7 85.8 88.2 89.1 88.7 84 Textile mill products 22 1.8 106.3 106.0 106.9 106.2 105.4 104.2 106.9 107.1 107.7 107.4 105.4 106.6 106.3 106.8 85 Apparel products 23 2.3 90.8 92.7 93.1 92.5 92.1 92.0 91.2 91.1 90.7 90.6 89.6 89.4 90.0 89.7 86 Paper and products 26 3.6 112.0 108.3 108.6 110.4 111.1 113.1 112.1 114.2 112.0 113.1 111.2 111.8 113.8 112.8 87 Printing and publishing.. 27 6.5 94.1 94.7 94.7 94.0 94.7 95.6 94.7 94.5 93.8 93.4 93.8 94.3 94.4 93.3 88 Chemicals and products. 28 8.8 118.3 116.7 116.8 116.2 117.6 117.8 118.1 119.1 118.7 119.1 118.5 118.1 119.6 120.0 89 Petroleum products 29 1.3 104.8 103.4 103.2 104.7 104.7 104.3 103.6 103.9 102.5 102.4 110044..33 110077..99 110088..22 110077..11 90 Rubber and plastic products 30 3.2 113.7 111.3 113.6 112.7 112.9 113.6 113.8 112.8 114.7 114.8 113.9 113.9 115.4 116.4 91 Leather and products ... 31 .3 98.1 96.7 97.1 99.0 99.1 100.1 98.2 97.0 96.8 97.0 98.2 99.1 99.3 99.4 92 Mining 8.0 97.0 98.2 98.3 95.9 95.3 96.4 97.3 98.0 96.4 95.5 97.7 98.2 97.4 97.9 93 Metal "lO .3 165.5 158.1 167.7 163.0 158.2 162.5 169.3 164.4 167.7 148.2 161.5 178.5 172.0 172.8 94 Coal 11,12 1.2 103.6 107.9 108.2 101.7 102.3 108.2 106.4 106.7 101.0 95.9 103.9 104.7 100.7 104.0 95 Oil and gas extraction 13 5.8 92.0 93.4 92.7 90.9 90.4 90.5 91.6 93.1 91.6 92.4 93.0 92.7 92.6 92.6 % Stone and earth minerals .. 14 .7 93.9 92.6 93.8 95.2 93.4 92.3 94.0 91.7 93.2 94.7 95.0 94.3 95.9 94.5 97 Utilities 7.7 116.0 116.8 112.8 117.5 117.8 114.4 112.1 114.9 116.9 117.7 115.3 114.6 115.4 116.6 98 Electric 49i,3PT 6.1 115.7 116.4 112.9 116.5 116.3 114.5 114.0 115.6 118.1 118.9 115.1 113.6 114.8 116.1 99 Gas 492,3PT 1.6 116.9 118.2 112.4 121.4 123.3 113.9 104.9 112.2 112.4 113.3 116.0 118.2 117.8 118.6 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 79.5 111.4 108.8 109.3 109.8 110.2 110.8 110.9 111.1 111.7 112.0 111122..11 112.6 111133..44 111133..88 101 Manufacturing excluding office and computing machines 81.9 108.7 107.0 107.6 108.0 108.1 108.6 108.3 108.1 108.3 108.5 108.7 109.5 110.7 111.3 Gross value (billions of 1987 dollars, annual rates) MAJOR MARKETS 102 Products, total 1,707.0 1,890.0 1,857.5 1,864.9 1,880.2 1,880.3 1,882.8 1,872.6 1,873.2 1,877.4 1,879.3 1,887.2 1,914.3 1,938.2 1,947.2 103 Final 1,314.6 1,492.5 1,466.8 1,476.4 1,485.7 1,484.3 1,485.6 1,477.9 1,477.5 1,479.0 1,480.5 1,489.1 1,513.4 1,534.3 1,542.1 104 Consumer goods 866.6 944.8 936.3 940.0 949.4 946.1 943.6 936.1 935.5 935.5 935.6 936.7 953.8 965.7 966.6 105 Equipment 448.0 547.6 530.5 536.5 536.3 538.2 541.9 541.8 541.9 543.4 544.9 552.4 559.6 568.7 575.5 106 Intermediate 392.5 397.6 390.7 388.4 394.5 396.0 397.3 394.7 395.7 398.4 398.8 398.1 401.0 403.9 405.1 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 1993 IItteemm 11999900 11999911 11999922 Feb. Mar. Apr. May June July Aug." Sept." Oct. Nov. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,111 949 1,095 1,141 1,034 1,101 1,121 1,115 1,162 1,242 1,271 1,304 1,374 2 One-family 794 754 911 957 871 925 919 925 977 1,015 1,047 1,097 1,145 3 Two-or-more-family 317 195 184 184 163 176 202 190 185 227 224 207 229 4 Started 1,193 11,,001144 1,200 1,180 1,124 1,206 1,248 1,248 1,232 1,328 1,371 1,390 1,450 5 One-family 895 884400 1,030 1,036 987 1,059 1,107 1,079 1,064 1,183 1,166 1,211 1,285 6 Two-or-more-family 298 174 169 144 137 147 141 169 168 145 205 179 165 7 Under construction at end of period .. 711 606 612 641 635 637 645 649 658 662 678 687 700 8 One-family 449 434 473 508 502 506 515 517 527 534 543 553 565 9 Two-or-more-family 262 173 140 133 133 131 130 132 131 128 135 134 135 10 Completed 1,308 1,091 1,158 1,241 1,108 1,222 1,129 1,158 1,088 1,256 1,166 1,250 1,259 11 One-family 966 838 964 1,049 995 1,075 987 987 947 1,078 1,034 1,083 1,116 12 Two-or-more-family 342 253 194 192 113 147 142 171 141 178 132 167 143 13 Mobile homes shipped 188 171 210 262 247 241 230 237 241 245 251 261 285 Merchant builder activity in one-family units 14 Number sold 535 507 610 597 602 689 629 641 647r 642 741 772255 880077 15 Number for sale at end of period ... 321 284 265 268 270 271 274 274 276 286 289 294 301 Price of units sold (thousands of dollars)2 122.3 120.0 121.3 129.4 125.0 127.0 129.9 124.5 112233..99"" 126.6 129.4 112244..99 113300..00 17 Average 149.0 147.0 144.9 149.4 146.6 148.4 152.3 145.7 143.4" 150.6 150.4 147.9 153.4 EXISTING UNITS (one-family) 18 Number sold 3,211 3,219 3,520 3,460 3,370 3,450 3,620 3,680 3,860 3,810 3,940 4,090 4,210 Price of units sold (thousands of dollars)2 95.2 99.7 103.6 103.6 105.1 105.8 106.5 109.3 108.5 109.0 107.2 110066..66 110077..22 20 Average 118.3 127.4 130.8 129.6 131.5 133.0 132.8 137.4 136.0 135.8 133.7 133.0 133.2 . Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 442,142 403,439 436,043 453,820 454,465 449,054 453,256 460,680 466,593" 468,547 477,125 488,921 497,681 ?? 334,681 293,536 317,256 334,801 336,972 328,150 332,231 335,028 337,909" 341,351 345,572 353,542 362,0% 73 Residential 182,856 157,837 187,820 205,730 205,519 197,317 198,380 200,4% 204,631" 206,594 209,520 214,7% 221,779 ?4 Nonresidential 151,825 135,699 129,436 129,071 131,453 130,833 133,851 134,532 133,278" 134,757 136,052 138,746 140,317 75 Industrial buildings 23,849 22,281 20,720 20,484 22,152 19,458 20,091 19,316 19,799" 20,126 21,346 21,231 22,127 76 Commercial buildings 62,866 48,482 41,523 42,317 41,323 42,426 42,428 42,723 41,524" 42,342 42,225 44,383 44,819 77 Other buildings 21,591 20,797 21,494 21,564 21,484 22,568 23,293 23,849 23,817" 25,047 24,487 24,733 24,524 28 Public utilities and other 43,519 44,139 45,699 44,706 46,494 46,381 48,039 48,644 48,138" 47,242 47,994 48,399 48,847 79 Public 107,461 109,900 118,784 119,019 117,493 120,904 121,025 125,652 128,684" 127,1% 131,553 135,380 135,584 30 Military 2,664 1,837 2,502 2,703 2,586 2,533 2,393 2,234 2,493" 2,583 2,492 2,510 2,291 31 Highway 32,108 32,026 34,929 33,009 33,413 34,534 34,320 37,649 37,376" 35,148 39,147 40,428 41,162 3? Conservation and development... 4,557 4,861 5,918 6,688 7,112 5,875 6,019 6,103 5,661" 5,620 6,307 6,156 6,383 33 Other 68,132 71,176 75,435 76,619 74,382 77,962 78,293 79,666 83,154" 83,845 83,607 86,286 85,748 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 • March 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 months earlier (annual rate) Change from 1 month earlier IIInnndddeeexxx IIIttteeemmm 1993 19931 lll DDD eeevvv eee eee ccc lll ... ,,, 11999922 11999933 111999999333111 DDeecc.. DDeecc.. Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 (1982-84=100) 1 All items 2.9 2.7 4.0 2.2 1.4 3.4 .3 .0 .4 .2 .2 145.8 2 Food 1.5 2.9 2.6 1.4 1.7 5.8 .3 .1 .6 .4 .5 142.7 i Energy items 2.0 -1.4 3.1 -3.8 -3.4 -1.9 -.5 -.4 1.9 -1.3 -1.1 102.4 4 All items less food and energy 3.3 3.2 4.3 2.9 1.9 3.4 .3 .1 .3 .3 .3 153.9 5 Commodities 2.5 1.6 4.6 .6 -.3 1.5 .3 -.4 .3 .2 -.1 135.7 6 Services 3.7 3.9 4.4 4.1 2.7 4.2 .3 .2 .3 .3 .4 164.3 PRODUCER PRICES (1982=100) 7 Finished goods 1.6 .2 4.3 .0 -1.9 -1.3 -.6 .2 -.2 .0 -.1 124.1 8 Consumer foods 1.6 2.4 -1.6 1.6 4.2 5.8 .5 .7 -.5 .8 1.1 127.2 9 Consumer energy -.3 -3.8 16.6 -3.0 -7.4 -18.2 -1.0r .0 1.3 -2.7 -3.5 73.5 10 Other consumer goods 2.1 -.6 3.2 .6 -5.9 .3 -1.8r ,lr -.5 .3 .3 137.8 11 Capital equipment 1.7 1.9 4.4 .3 2.2 .6 .2 .0 -.4 .2 .3 132.7 Intermediate materials 12 Excluding foods and feeds 1.1 .6 5.7 .3 -.3 -2.4 .0 .1 -.1 -.3 -.3 115.8 13 Excluding energy 1.2 1.6 4.7 .0 .6 1.3 .2 .0 .0 .1 .2 124.4 Crude materials 14 Foods 3.0 6.6 1.9 -1.9 12.6 15.1 1.7r .2r -1.5 3.8 1.3 111.5 15 Energy 2.3 -13.7 -10.1 17.5 -26.5 -28.4 -l^ 1.8r 4.9 -3.8 -8.9 68.9 16 Other 5.7 11.6 24.3 11.5 -8.5 21.8 -2.2r -.6r .9 1.7 2.4 144.8 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 AAccccoouunntt 11999900 11999911 11999922 Q3 Q4 Q1 Q2 Q3r 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 6,395.9 By source 2 Personal consumption expenditures 3,761.2 3,906.4 4,139.9 4,157.1 4,256.2 4,296.2 4,359.9 4,419.1 3 Durable goods 468.2 457.8 497.3 500.9 516.6 515.3 531.6 541.9 4 Nondurable goods 1,229.2 1,257.9 1,300.9 1,305.7 1,331.7 1,335.3 1,344.8 1,352.4 5 Services 2,063.8 2,190.7 2,341.6 2,350.5 2,407.9 2,445.5 2,483.4 2,524.8 6 Gross private domestic investment 808.9 736.9 796.5 802.2 833.3 874.1 874.1 884.0 7 Fixed investment 802.0 745.5 789.1 792.5 821.3 839.5 861.0 876.3 8 Nonresidential 586.7 555.9 565.5 569.2 579.5 594.7 619.1 624.9 9 Structures 201.6 182.6 172.6 170.8 171.1 172.4 177.6 179.1 10 Producers' durable equipment 385.1 373.3 392.9 398.4 408.3 422.2 441.6 445.8 11 Residential structures 215.3 189.6 223.6 223.3 241.8 244.9 241.9 251.3 12 Change in business inventories 6.9 -8.6 7.3 9.7 12.0 34.6 13.1 7.7 13 Nonfarm 3.8 -8.6 2.3 4.4 9.5 33.0 16.8 22.6 14 Net exports of goods and services -71.4 -19.6 -29.6 -38.8 -38.8 -48.3 -65.1 -71.9 15 Exports 557.1 601.5 640.5 641.1 654.7 651.3 660.0 653.2 16 Imports 628.5 621.1 670.1 679.9 693.5 699.6 725.0 725.1 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 1,164.8 18 Federal 426.5 445.9 448.8 452.8 452.4 442.7 447.5 443.6 19 State and local 620.9 653.4 683.0 686.2 691.4 697.0 711.1 721.2 By major type of product 7,0 Final sales, total 5,539.3 5,731.6 6,031.2 6,049.9 6,182.5 6,227.1 66,,331144..55 66,,338888..22 71 Goods 2,178.4 2,227.0 2,305.5 2,308.6 2,365.6 2,362.9 2,395.0 2,401.7 22 Durable 933.6 934.3 975.8 978.4 1,008.3 1,003.5 1,037.8 1,032.9 23 Nondurable 1,244.8 1,292.8 1,329.6 1,330.2 1,357.3 1,359.3 1,357.1 1,368.8 24 Services 2,849.5 3,032.7 3,221.1 3,239.3 3,296.1 3,341.8 3,388.1 3,437.8 25 Structures 511.5 471.9 504.7 501.9 520.8 522.4 531.5 548.7 26 Change in business inventories 6.9 -8.6 7.3 9.7 12.0 34.6 13.1 7.7 27 Durable goods -2.1 -12.9 2.1 5.7 -1.2 15.0 2.7 14.8 28 Nondurable goods 9.0 4.3 5.3 4.0 13.2 19.5 10.4 -7.2 MEMO 29 Total GDP in 1987 dollars 4,897.3 4,861.4 4,986.3 4,998.2 5,068.3 5,078.2 5,102.1 5,138.3 NATIONAL INCOME 30 Total 4,491.0 4,598.3 4,836.6 4,800.8 4,975.8 5,038.9 5,104.0 5,143.2 31 Compensation of employees 3,297.6 3,402.4 3,582.0 3,603.6 3,658.6 3,705.1 3,750.6 3,793.9 32 Wages and salaries 2,745.0 2,814.9 2,953.1 2,970.7 3,015.8 3,054.3 3,082.7 3,115.4 33 Government and government enterprises 516.0 545.3 567.5 569.7 574.2 584.1 586.3 592.8 34 Other 2,229.0 2,269.6 2,385.6 2,401.0 2,441.6 2,470.2 2,496.3 2,522.6 35 Supplement to wages and salaries 552.5 587.5 629.0 632.9 642.8 650.7 668.0 678.5 36 Employer contributions for social insurance 278.3 290.6 306.3 306.9 311.3 312.2 321.4 323.8 37 Other labor income 274.3 296.9 322.7 326.0 331.5 338.5 346.6 354.7 38 Proprietors' income1 363.3 376.4 414.3 408.1 431.2 444.1 439.4 422.5 39 Business and professional 321.4 339.5 370.6 371.3 383.6 388.4 392.4 397.6 40 Farm1 41.9 36.8 43.7 36.8 47.6 55.7 47.0 24.8 41 Rental income of persons2 -14.2 -12.8 -8.9 -18.5 -1.2 7.5 12.7 13.7 42 Corporate profits' 380.6 369.5 407.2 367.5 439.5 432.1 458.1 468.5 43 Profits before tax3 365.7 362.3 395.4 357.9 409.9 419.8 445.6 443.8 44 Inventory valuation adjustment -11.0 4.9 -5.3 -7.8 4.9 -12.7 -12.2 1.0 45 Capital consumption adjustment 25.9 2.2 17.1 17.4 24.7 25.1 24.7 23.8 46 Net interest 463.7 462.8 442.0 440.1 447.7 450.1 443.2 444.6 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • March 1994 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1992 1993 AAccccoouunntt 11999900 11999911 11999922 Q3 Q4 Ql Q2 Q3r 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 5,412.7 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 3,115.4 3 Commodity-producing industries 745.7 738.1 756.5 751.6 783.3 740.7 765.1 769.4 4 Manufacturing 555.6 557.2 577.6 573.3 602.0 559.7 580.3 581.5 5 Distributive industries 635.1 648.0 682.0 682.5 709.9 682.9 709.1 714.4 6 Service industries 848.3 883.5 967.0 966.8 1,028.4 966.6 1,022.2 1,038.8 7 Government and government enterprises 515.9 545.4 567.5 569.7 574.2 584.1 586.3 592.8 8 Other labor income 274.3 296.9 322.7 326.0 331.5 338.5 346.6 354.7 9 Proprietors' income1 363.3 376.4 414.3 408.1 431.2 444.1 439.4 422.5 10 Business and professional1 321.4 339.5 370.6 371.3 383.6 388.4 392.4 397.6 11 Farm1 41.9 36.8 43.7 36.8 47.6 55.7 47.0 24.8 12 Rental income of persons2 -14.2 -12.8 -8.9 -18.5 -1.2 7.5 12.7 13.7 13 Dividends 144.4 127.9 140.4 144.9 152.3 157.0 157.8 159.0 14 Personal interest income 698.2 715.6 694.3 692.2 694.5 695.4 693.1 695.7 15 Transfer payments 687.6 769.9 858.4 866.1 877.4 894.4 905.5 918.5 16 Old-age survivors, disability, and health insurance benefits ... 352.0 382.3 413.9 416.6 420.8 433.1 435.0 439.4 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 5,412.7 19 LESS: Personal tax and nontax payments 623.3 620.4 644.8 642.8 670.7 657.1 681.0 689.0 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 4,723.7 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 4,544.0 22 EQUALS: Personal saving 170.0 201.5 238.7 219.6 279.7 177.9 208.7 179.7 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,593.0 19,237.9 19,518.0 1199,,553366..77 1199,,775544..11 1199,,774444..44 1199,,778855..44 1199,,886688..88 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 13,416.2 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 14,341.0 26 Saving rate (percent) 4.2 4.8 5.3 4.9 6.0 3.9 4.4 3.8 GROSS SAVING 27 Gross saving 722.7 733.7 717.8 727.0 718.8 762.0 766.7 774.3 28 Gross private saving 861.1 929.9 986.9 1,016.5 969.4 1,024.8 988.3 988.7 29 Personal saving 170.0 201.5 238.7 219.6 279.7 177.9 208.7 179.7 30 Undistributed corporate profits1 88.5 102.3 110.4 82.3 121.7 103.7 116.3 129.3 31 Corporate inventory valuation adjustment -11.0 4.9 -5.3 -7.8 4.9 -12.7 -12.2 1.0 Capital consumption allowances 32 Corporate 368.2 383.2 3%. 6 410.3 339966..55 440022..22 440055..22 441144..00 33 Noncorporate 234.5 242.8 261.3 304.3 251.5 261.0 258.1 265.7 34 Government surplus, or deficit (-), national income and -138.4 -196.2 -269.1 -289.5 -250.6 -262.8 --222211..55 --221144..44 35 Federal -163.5 -203.4 -276.3 -290.7 -264.2 -263.5 -222.6 -212.7 36 State and local 25.1 7.3 7.2 1.2 13.5 .8 1.1 -1.7 37 Gross investment 730.4 743.3 741.4 742.7 750.9 796.5 778.7 787.6 38 Gross private domestic 808.9 736.9 796.5 802.2 833.3 874.1 874.1 884.0 39 Net foreign -78.5 6.4 -55.1 -59.4 -82.4 -77.6 -95.4 —96.4 40 Statistical discrepancy 7.8 9.6 23.6 15.7 32.1 34.4 12.0 13.3 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1992 Item credits or debits Q3 Q4 Ql Q2r Q3P 1 Balance on current account -91,861 -8,324 -66,400 -17,775 -23,687 -22,308 -27,172 -27,986 2 Merchandise trade balance -109,033 -73,802 -96,138 -27,612 -25,962 -29,309 -34,384 -36,279 3 Merchandise exports 389,303 416,937 440,138 109,493 113,992 111,530 113,118 111,912 4 Merchandise imports -498,336 -490,739 -536,276 -137,105 -139,954 -140,839 -147,502 -148,191 5 Military transactions, net -7,834 -5,851 -2,751 -617 -836 -145 -226 -341 6 Other service transactions, net 38,485 51,733 59,163 15,898 14,265 14,769 14,685 14,448 7 Investment income, net 20,348 13,021 6,222 1,703 -806 -37 47 1,748 8 U.S. government grants -17,434 24,073 -14,688 -2,783 -5,883 -3,242 -2,730 -2,970 9 U.S. government pensions and other transfers -2,934 -3,461 -3,735 -940 -846 -978 -979 -976 10 Private remittances and other transfers -13,459 -14,037 -14,473 -3,424 -3,619 -3,366 -3,585 -3,616 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,307 2,905 -1,609 -305 -737 535 -275 -86 12 Change in U.S. official reserve assets (increase, -) -2,158 5,763 3,901 1,952 1,542 -983 822 -545 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -192 -177 2,316 -173 2,829 -140 -166 -118 15 Reserve position in International Monetary Fund 731 -367 -2,692 -118 -2,685 -228 313 -48 16 Foreign currencies -2,697 6,307 4,277 2,243 1,398 -615 675 -378 17 Change in U.S. private assets abroad (increase, -) -44,280 -68,643 -53,253 -12,445 -31,243 -11,910 -29,888 -43,331 18 Bank-reported claims3 16,027 3,278 24,948 6,584 -3,481 28,055 5,317 7,547 19 Nonbank-reported claims -4,433 1,932 4,551 -3,214 1,132 -4,774 443 20 U.S. purchases of foreign securities, net -28,765 -44,740 -47,961 -13,787 -17,405 -26,889 -24,098 -45,290 21 U.S. direct investments abroad, net -27,109 -29,113 -34,791 -2,028 -11,489 -8,302 -11,550 -5,588 22 Change in foreign official assets in United States (increase, +) .. 34,198 17,564 40,684 -7,378 5,931 10,929 17,699 19,646 23 U.S. Treasury securities 29,576 14,846 18,454 -323 -7,379 1,039 5,668 18,808 24 Other U.S. government obligations 667 1,301 3,949 912 874 710 1,082 1,545 25 Other U.S. government liabilities 2,156 1,542 2,542 864 943 -395 396 1,322 26 Other U.S. liabilities reported by U.S. banks' 3,385 -1,484 16,427 -7,831 11,219 8,171 9,454 -2,213 27 Other foreign official assets -1,586 1,359 -1,000 274 1,404 1,099 184 28 Change in foreign private assets in United States (increase, +).. 70,976 65,875 88,895 33,828 32,914 14,789 24,681 46,806 29 U.S. bank-reported liabilities3 16,370 -11,371 18,609 23,647 -1,171 -18,862 -1,381 23,525 30 U.S. nonbank-reported liabilities 7,533 -699 741 1,553 -2,717 2,057 1,361 31 Foreign private purchases of U.S. Treasury securities, net -2,534 18,826 36,893 4,870 21,232 13,599 -623 3,995 32 Foreign purchases of other U.S. securities, net 1,592 35,144 30,274 2,730 12,478 9,394 15,025 17,411 33 Foreign direct investments in United States, net 48,015 23,975 2,378 1,028 3,092 8,601 10,299 1,875 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 3 3 5 6 Di D sc u r e e p t a o n s c e y a sonal adjustment 30,820 -15,140 -12,218 -6 2 , , 7 1 5 2 4 3 15 1 , , 2 22 8 2 0 8 5 , , 9 8 4 1 8 4 14,1 6 3 8 3 1 -7 5 , , 6 4 0 9 5 5 37 Before seasonal adjustment 30,820 -15,140 -12,218 8,877 14,058 3,134 13,452 13,100 MEMO Changes in official assets 38 U.S. official reserve assets (increase, —) -2,158 5,763 3,901 1,952 1,542 -983 822 -544 39 Foreign official assets in United States, excluding line 25 (increase, +) 32,042 16,022 38,142 -8,242 4,988 11,324 17,303 18,324 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 1,707 -4,882 5,857 3,051 2,336 463 -916 -3,043 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 • March 1994 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1993 IItteemm 11999900 11999911 11999922 May June July Aug. Sept.r Oct.r Nov.p 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 393,592 421,730 448,164 38,930 3377,,663399 37,109 3388,,005500 3388,,888855 4400,,009922 4400,,006677 2 General imports including merchandise for immediate consumption plus entries into bonded warehouses 495,311 488,453 532,665 47,306 49,698 47,534 48,097 49,506 50,990 50,235 3 Trade balance -101,718 -66,723 -84,501 -8,376 -12,058 -10,425 -10,047 -10,621 -10,897 -10,169 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 June July Aug. Sept. Oct. Nov. Dec.p 1 Total 83,316 77,719 71,323 73,968 74,139 75,231 75,835 74,550 74,042 73,442 2 Gold stock, including Exchange Stabilization Fund1 11,058 11,057 11,056 11,057 11,057 11,057 11,057 11,056 11,054 11,053 3 Special drawing rights ,3 10,989 11,240 8,503 8,987 8,905 9,133 9,203 99,,003388 9,091 9,039 4 Reserve position in International Monetary Fund2 9,076 9,488 11,759 11,926 12,083 12,118 12,101 11,908 11,827 11,818 5 Foreign currencies4 52,193 45,934 40,005 41,998 42,094 42,923 43,474 42,548 42,070 41,532 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 Internationa] 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 June July Aug. Sept. Oct. Nov. Dec.p 1 Deposits 369 968 205 286 284 357 501 390 5% 386 Held in custody 2 U.S. Treasury securities 278,499 281,107 314,481 343,672 343,378 356,671 358,860 358,975 373,864 379,394 3 Earmarked gold 13,387 13,303 13,686 12,829 12,756 12,686 12,562 12,464 12,381 12,327 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 May June July Aug. Sept. Oct. Nov. ASSETS All foreign countries 1 Total payable in any currency 556,925 548,999 542,761R 549,030R 562,740R 551,551R 560,689* 557,901R 562,192 562,891 ? Claims on United States 188,496 176,487 166,799r 162,356r 176,026r 163,793 166,817 168,704r 164,023 165,016 148,837 137,695 132,276r 127,127r 141,025r 127,474 130,865 137,556r 127,347 127,148 4 Other banks in United States 13,296 12,884 9,703 9,169 9,498 8,993 9,457 6,862 7,739 7,647 5 26,363 25,908 24,820 26,060 25,503 27,326 26,495 24,286 28,937 30,221 6 Claims on foreigners 312,449 303,934 318,284r 321,201r 316,681r 317,198r 326,098r SW.SSO' 327,336 325,066 7 Other branches of parent bank 135,003 111,729 123,469r 111,445r lll,851r 105,299r 108,216r 109,637r 107,155 105,449 8 72,602 81,970 82,190 88,193r 85,977r 88,653r 90,013r 85,066r 92,262 89,778 9 Public borrowers 17,555 18,652 20,756 18,251 18,183 17,687 18,364 17,797 17,881 19,855 10 Nonbank foreigners 87,289 91,583 91,869 103,312 100,670 105,559 109,505 107,350*^ 110,038 109,984 11 Other assets 55,980 68,578 57,678r 65,473 70,033r 70,560 67,774 69,347r 70,833 72,809 12 Total payable in U.S. dollars 379,479 364,078 365,941R 344,992R 355,361R 341,060R 338,957R 349,335R 342,145 339,140 N Claims on United States 180,174 169,848 162,126r 156,419r 169,503r 155,387 157,538 161,438r 154,083 153,892 14 Parent bank 142,962 133,662 129,33(f 123,958r 137,712r 124,072 127,028 133,841r 124,064 123,370 15 Other banks in United States 12,513 12,025 9,266 8,209 8,638 8,270 8,475 6,322 7,046 6,977 16 Nonbanks 24,699 24,161 23,530 24,252 23,153 23,045 22,035 21,275 22,973 23,545 17 Claims on foreigners 174,451 167,010 183,641r 170,540" 168,886r 167,295r 164,379" 169,243r 166,803 163,642 18 Other branches of parent bank 95,298 78,114 83,231r 73,128r 73,071r 70,W 68,623r 71,161r 67,602 65,432 19 36,440 41,635 47,250 44,925r 43,679r 44,267r 42,383r 43,%2r 44,722 43,602 70 Public borrowers 12,298 13,685 14,313 12,244 12,049 11,951 11,999 11,580 11,512 12,504 71 Nonbank foreigners 30,415 33,576 38,847 40,243 40,087 40,677 41,374 42,540r 42,%7 42,104 22 Other assets 24,854 27,220 20,174r 18,033 16,972 18,378 17,040 18,654r 21,259 21,606 United Kingdom 23 Total payable in any currency 184,818 175,599 165,850 165,044 173,158 167,046 172,710 173,057 173,948 175,316 74 Claims on United States 45,560 35,257 36,403 31,239 37,038 34,032 35,491 34,053 32,641 35,377 75 Parent bank 42,413 31,931 33,460 27,523 33,059 29,184 30,612 30,776 26,562 27,944 76 Other banks in United States 792 1,267 1,298 747 1,006 808 877 631 1,010 804 77 2,355 2,059 1,645 2,%9 2,973 4,040 4,002 2,646 5,069 6,629 78 Claims on foreignei s 115,536 109,692 111,623 111,830 109,528 107,799 114,150 115,203 118,207 112,705 79 Other branches of parent bank 46,367 35,735 46,165 41,458 40,130 37,164 39,778 40,613 40,545 36,971 30 31,604 36,394 33,399 37,282 36,848 38,543 40,332 40,277 44,704 42,454 31 Public borrowers 3,860 3,306 3,329 2,420 2,342 2,341 2,606 2,171 2,147 2,984 3? Nonbank foreigners 33,705 34,257 28,730 30,670 30,208 29,751 31,434 32,142 30,811 30,2% 33 Other assets 23,722 30,650 17,824 21,975 26,592 25,215 23,069 23,801 23,100 27,234 34 Total payable in U.S. dollars 116,762 105,974 109,493 97,431 100,422 96,200 93,739 97,841 94,820 94,227 35 Claims on United States 41,259 32,418 34,508 28,634 34,110 30,573 31,753 31,160 27,731 30,092 36 Parent bank 39,609 30,370 32,186 25,9% 31,265 27,580 28,938 29,130 24,756 26,046 37 Other banks in United States 334 822 1,022 326 533 300 308 328 430 365 38 Nonbanks 1,316 1,226 1,300 2,312 2,312 2,693 2,507 1,702 2,545 3,681 39 Claims on foreigners 63,701 58,791 66,335 61,742 60,479 58,944 56,603 59,725 59,3% 55,167 40 Other branches of parent bank 37,142 28,667 34,124 30,753 30,287 27,814 27,713 28,306 27,478 24,779 41 13,135 15,219 17,089 17,073 16,658 17,590 15,466 17,967 18,910 17,103 4? Public borrowers 3,143 2,853 2,349 1,808 1,804 1,744 1,832 1,614 1,613 2,446 43 Nonbank foreigners 10,281 12,052 12,773 12,108 11,730 11,796 11,592 11,838 11,395 10,839 44 Other assets 11,802 14,765 8,650 7,055 5,833 6,683 5,383 6,956 7,693 8,968 Bahamas and Cayman Islands 45 Total payable in any currency 162,316 168,512 147,422 142,872 148,982 140,580 140,172 147,385 146,834 144,327 46 Claims on United States 112,989 115,430 %,280 94,894 102,109 93,736 93,661 98,873 98,100 %,389 47 Parent bank 77,873 81,706 66,608 66,170 74,023 66,363 67,055 74,040 72,185 70,682 48 Other banks in United States 11,869 10,907 7,828 7,184 7,651 7,477 7,360 5,489 5,710 5,993 49 Nonbanks 23,247 22,817 21,844 21,540 20,435 19,8% 19,246 19,344 20,205 19,714 50 Claims on foreigners 41,356 45,229 44,509 41,378 40,437 39,609 39,588 41,814 40,028 40,257 51 Other branches of parent bank 13,416 11,098 7,293 6,999 7,009 6,772 7,226 8,958 8,024 8,713 5? 16,310 20,174 21,212 18,527 18,117 17,688 16,863 17,090 16,228 15,999 53 Public borrowers 5,807 7,161 7,786 6,527 6,334 6,185 6,102 5,955 5,767 5,735 54 Nonbank foreigners 5,823 6,7% 8,218 9,325 8,977 8,964 9,397 9,811 10,009 9,810 55 Other assets 7,971 7,853 6,633 6,600 6,436 7,235 6,923 6,698 8,706 7,681 56 Total payable in U.S. dollars 158,390 163,957 142,861 138,202 143,900 136,025 135,698 142,831 142,273 140,010 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

56 International Statistics • March 1994 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1—Continued Account 1990 1991 1992 May June July Aug. Sept. Oct. LIABILITIES All foreign countries 57 Total payable in any currency 556,925 548,999 542,76IR 549,030R 562,740' 551,551' 560,689' 557,901' 562,192 562,891 58 Negotiable certificates of deposit (CDs) 18,060 16,284 10,032 14,348 14,154 14,568 14,604 12,666 12,166 11,935 59 To United States 189,412 198,307 189,445r 175,443r 186,374 174,089 172,074 180,514' 173,532 173,492 60 Parent bank 138,748 136,431 134,340r 117,208r 129,486 120,953 118,724 122,088' 114,945 114,811 61 Other banks in United States 7,463 13,260 12,182 14,062 13,514 10,440 9,561 11,662 10,699 11,568 62 Nonbanks 43,201 48,616 42,923 44,173 43,374 42,6% 43,789 46,764 47,888 47,113 63 To foreigners 311,668 288,254 309,917' 322,276r 319,105r 319,673r 333,165' 323,533' 335,078 333,230 64 Other branches of parent bank ... 139,113 112,033 125,189' 115,206r 115,743r 108,954r 113,582' 111,717' 109,288 108,6% 65 Banks 58,986 63,097 62,268r 69,332r 67,258r 71,509r 73,682' 69,691' 78,882 75,163 66 Official institutions 14,791 15,5% 19,731 22,271 22,466 23,147 23,049 22,698 24,712 26,020 67 Nonbank foreigners 98,778 97,528 102,7291 115,467"" 113,638r 116,063' 122,852' 119,427' 122,1% 123,351 68 Other liabilities 37,785 46,154 33,367r 36,%3 43,107r 43,221 40,846 41,188' 41,416 44,234 69 Total payable in U.S. dollars 383,522 370,710 368,869R 344,370' 357,179R 342,393' 339,410' 347,530' 340,549 339,383 70 Negotiable CDs 14,094 11,909 6,238 7,248 8,138 7,958 7,370 6,131 5,886 5,708 71 To United States 175,654 185,472 178,675r 162,329* 172,708 160,499 157,841 167,538' 160,049 160,469 72 Parent bank 130,510 129,669 127,949r 110,162r 121,922 113,313 110,881 114,436' 107,631 107,848 73 Other banks in United States 6,052 11,707 11,512 13,126 12,862 9,789 8,842 11,092 9,927 10,923 74 Nonbanks 39,092 44,0% 39,214 39,041 37,924 37,397 38,118 42,010 42,491 41,698 75 To foreigners 179,002 158,993 172,284r 165,212r 166,193r 163,673' 165,121' 163,573' 162,435 159,341 76 Other branches of parent bank ... 98,128 76,601 83,714r 75,327r 75,798r 72,924' 72,504' 72,151' 68,934 66,909 77 Banks 20,251 24,156 26,159" 22,%9 23,440 23,631 24,522 23,845' 24,252 24,034 78 Official institutions 7,921 10,304 12,430 12,653 12,951 12,868 12,031 10,720 11,416 11,210 79 Nonbank foreigners 52,702 47,932 49,981r 54,263r 54,004r 54,25c 56,064' 56,857' 57,833 57,188 80 Other liabilities 14,772 14,336 11,672 9,581 10,140 10,263 9,078 10,288' 12,179 13,865 United Kingdom 81 Total payable in any currency .. 184,818 175,599 165,850 165,044 173,158 167,046 172,710 173,057 173,948 175,316 82 Negotiable CDs 14,256 11,333 4,517 5,644 6,566 6,364 6,674 5,318 4,489 4,188 83 To United States 39,928 37,720 39,174 37,272 39,514 35,521 36,600 37,180 33,498 31,953 84 Parent bank 31,806 29,834 31,100 28,095 30,410 27,183 28,076 29,217 25,147 24,755 85 Other banks in United States 1,505 1,438 1,065 1,652 1,097 850 741 682 782 556 86 Nonbanks 6,617 6,448 7,009 7,525 8,007 7,488 7,783 7,281 7,569 6,642 87 To foreigners 108,531 98,167 107,176 106,834 106,725 105,949 112,121 112,534 118,837 117,926 88 Other branches of parent bank 36,709 30,054 35,983 31,437 32,275 28,408 30,534 31,578 31,921 34,236 89 Banks 25,126 25,541 25,231 27,184 25,848 28,504 29,039 28,064 32,055 30,120 90 Official institutions 8,361 9,670 12,090 11,752 12,139 11,885 11,575 12,425 13,269 13,104 91 Nonbank foreigners 38,335 32,902 33,872 36,461 36,463 37,152 40,973 40,467 41,592 40,466 92 Other liabilities 22,103 28,379 14,983 15,294 20,353 19,212 17,315 18,025 17,124 21,249 93 Total payable in U.S. dollars 116,094 108,755 108,214 %,152 98,465 93,360 92,066 94,697 91,614 91,266 94 Negotiable CDs 12,710 10,076 3,894 4,392 5,462 5,197 4,890 3,728 3,388 3,234 95 To United States 34,697 33,003 35,417 32,457 34,523 30,669 31,579 32,838 28,725 27,055 96 Parent bank 29,955 28,260 29,957 26,631 28,747 25,753 26,600 28,039 24,093 23,524 97 Other banks in United States 1,156 1,177 709 1,311 847 637 476 397 350 337 98 Nonbanks 3,586 3,566 4,751 4,515 4,929 4,279 4,503 4,402 4,282 3,194 99 To foreigners 60,014 56,626 62,048 54,576 53,282 52,336 51,256 52,608 54,211 53,230 100 Other branches of parent bank 25,957 20,800 22,026 17,449 17,691 16,198 16,063 16,859 16,108 18,487 101 Banks 9,488 11,069 12,540 9,065 8,305 8,347 7,666 8,877 9,%7 7,831 102 Official institutions 4,692 7,156 8,847 8,210 8,812 8,720 8,042 7,195 7,399 7,238 103 Nonbank foreigners 19,877 17,601 18,635 19,852 18,474 19,071 19,485 19,677 20,737 19,674 104 Other liabilities 8,673 9,050 6,855 4,727 5,198 5,158 4,341 5,523 5,290 7,747 Bahamas and Cayman Islands 105 Total payable in any currency ... 162,316 168,512 147,422 142,872 148,982 140,580 140,172 147,385 146,834 144,327 106 Negotiable CDs 646 1,173 1,350 1,812 1,535 1,562 1,307 1,315 1,260 1,370 107 To United States 114,738 130,058 111,861 102,825 109,238 101,036 99,418 108,107 106,453 107,554 108 Parent bank 74,941 79,394 67,347 57,132 64,608 59,352 58,031 60,407 59,323 59,368 109 Other banks in United States . 4,526 10,231 10,445 11,220 11,567 8,603 7,791 10,146 9,117 10,056 110 Nonbanks 35,271 40,433 34,069 34,473 33,063 33,081 33,5% 37,554 38,013 38,130 111 To foreigners 44,444 35,200 32,556 36,220 36,621 35,973 37,808 36,449 35,291 32,347 112 Other branches of parent bank 24,715 17,388 15,169 18,652 18,944 18,164 19,103 18,609 17,451 14,131 113 Banks 5,588 5,662 6,422 6,159 6,417 6,9% 7,766 6,347 6,272 6,356 114 Official institutions 622 572 805 1,064 1,031 902 836 881 770 953 115 Nonbank foreigners 13,519 11,578 10,160 10,345 10,229 9,911 10,103 10,612 10,798 10,907 116 Other liabilities 2,488 2,081 1,655 2,015 1,588 2,009 1,639 1,514 3,830 3,056 117 Total payable in U.S. dollars 157,132 163,789 143,150 137,847 144,014 135,893 135,483 142,449 142,246 140,068 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 Mayr Juner Julyr Aug/ Sept/ Oct/ Nov.p 1 Total1 360,530 398,816r 424,570 427,561 427,039 436,972 445,692 444,147 456,673 By type 2 Liabilities reported by banks in the United States^ 38,396 54,967r 69,471 72,714 67,464 68,827 70,219 65,668 67,544 3 U.S. Treasury bills and certificates3 92,692 104,5% 120,194 119,860 128,837 136,488 139,638 140,525 144,865 U.S. Treasury bonds and notes 4 Marketable 203,677 210,553 201,878 201,118 196,441 197,165 200,346 202,005 208,152 5 Nonmarketable 4,858 4,532 5,417 5,451 5,488 5,508 5,542 5,579 5,615 6 U.S. securities other than U.S. Treasury securities 20,907 24,168 27,610 28,418 28,809 28,984 29,947 30,370 30,497 By area 7 Europe 171,317 191,708 193,690 193,401 188,981 191,890 198,254 193,676 208,370 8 Canada 7,460 7,920 8,899 8,297 8,808 8,075 8,260 9,441 8,657 9 Latin America and Caribbean 33,554 40,025r 48,195 48,548 53,805 55,343 54,703 54,275 50,349 10 Asia 139,465 152,276r 165,137 169,504 169,080 174,901 177,164 178,919 182,457 11 Africa , 2,092 3,565 3,782 3,621 2,844 3,109 3,888 3,665 3,650 12 Other countries6 6,640 3,320 4,865 4,188 3,519 3,652 3,421 4,169 3,188 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 Dec. Mar. June Sept. 1 Banks' liabilities 67,835 70,477 75,129 72,7% 80,999 74,697 80,479 2 Banks' claims 65,127 66,7% 73,195 62,789 64,057 55,161 58,884 3 Deposits 20,491 29,672 26,192 24,240 24,928 23,449 22,852 4 Other claims 44,636 37,124 47,003 38,549 39,129 31,712 36,032 5 Claims of banks' domestic customers2 3,507 6,309 3,398 4,432 2,625 3,234 2,640 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 • March 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 Mayr Juner Julyr Aug.r Sept.r Oct. Nov.p HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 759,634 756,066 810,259* 796,836 824,957 821,788 846,626 862,147 862,211 881,107 2 Banks' own liabilities 577,229 575,374 606,444r 574,273 597,695 589,281 606,529 614,608 609,087 615,757 3 Demand deposits 21,723 20,321 21,828r 22,140 21,466 21,818 21,503 25,445 22,035 25,462 4 Time deposits 168,017 159,649 160,385r 147,854 152,072 151,293 152,967 153,607 158,813 155,888 5 Other. 65,822 66,305 93,237r 103,993 107,462 106,962 116,406 113,063 129,577 128,996 6 Own foreign offices4 321,667 329,099 330,994r 300,286 316,695 309,208 315,653 322,493 298,662 305,411 7 Banks' custodial liabilities5 182,405 180,692 203,815 222,563 227,262 232,507 240,097 247,539 253,124 265,350 8 U.S. Treasury bills and certificates6 96,796 110,734 127,644 144,129 144,059 153,359 161,827 165,151 164,365 169,728 9 Other negotiable and readily transferable instruments 17,578 18,664 21,974 24,515 30,056 26,477 27,643 30,879 37,858 38,552 10 Other 68,031 51,294 54,197 53,919 53,147 52,671 50,627 51,509 50,901 57,070 11 Nonmonetary international and regional organizations 5,918 8,981 9,350 8,934 9,330 9,587 12,365 11,409 10,984 12,630 12 Banks' own liabilities 4,540 6,827 6,951 6,481 6,270 6,397 8,671 7,995 6,780 8,756 13 Demand deposits 36 43 46 35 19 29 37 72 71 34 14 Time deposits 1,050 2,714 3,214 2,989 3,607 2,920 2,882 4,062 2,968 2,813 15 Other. 3,455 4,070 3,691 3,457 2,644 3,448 5,752 3,861 3,741 5,909 16 Banks' custodial liabilities5 1,378 2,154 2,399 2,453 3,060 3,190 3,694 3,414 4,204 3,874 17 U.S. Treasury bills and certificates6 364 1,730 1,908 1,883 2,320 2,635 3,418 33,,119999 3,566 3,201 18 Other negotiable and readily transferable instruments 1,014 424 486 564 740 549 276 215 638 672 19 Other 0 0 5 6 0 6 0 0 0 1 20 Official institutions9 119,303 131,088 159,563r 189,665 192,574 196,301 205,315 209,857 206,193 212,409 21 Banks' own liabilities 34,910 34,411 51,202r 63,847 62,972 62,062 62,255 63,618 60,995 61,748 22 Demand deposits 1,924 2,626 l,302r 1,408 2,231 1,583 1,321 1,951 2,121 2,089 23 Time deposits 14,359 16,504 17,939" 21,951 19,603 18,935 18,110 20,552 14,885 16,938 24 Other 18,628 15,281 31,961 40,488 41,138 41,544 42,824 41,115 43,989 42,721 25 Banks' custodial liabilities5 84,393 96,677 108,361 125,818 129,602 134,239 143,060 146,239 145,198 150,661 26 U.S. Treasury bills and certificates 79,424 92,692 104,596 120,194 119,860 128,837 113366,,448888 113399,,663388 140,525 114444,,886655 27 Other negotiable and readily transferable instruments 4,766 3,879 3,726 5,480 9,602 5,297 6,514 6,149 4,491 5,614 28 Other 203 106 39 144 140 105 58 452 182 182 29 Banks10 540,805 522,265 547,320" 507,174 529,179 521,266 531,961 544,176 538,374 550,384 30 Banks' own liabilities 458,470 459,335 476,117r 436,499 459,341 450,361 462,736 470,133 460,044 468,262 31 Unaffiliated foreign banks 136,802 130,236 145,123r 136,213 142,646 141,153 147,083 147,640 161,382 162,851 32 Demand deposits 10,053 8,648 10,170" 11,389 9,919 10,677 10,478 12,808 9,948 13,369 33 Time deposits 88,541 82,857 90,296r 76,317 83,064 84,567 85,965 83,070 95,176 91,462 34 Other 38,208 38,731 44,657r 48,507 49,663 45,909 50,640 51,762 56,258 58,020 35 Own foreign offices 321,667 329,099 330,994r 300,286 316,695 309,208 315,653 322,493 298,662 305,411 36 Banks' custodial liabilities5 82,335 62,930 71,203 70,675 69,838 70,905 69,225 74,043 78,330 82,122 37 U.S. Treasury bills and certificates6 10,669 7,471 11,087 10,837 10,546 10,627 1111,,332277 1111,,779944 1100,,004466 1100,,553399 38 Other negotiable and readily transferable instruments 5,341 5,694 7,555 7,397 7,741 9,049 8,760 12,688 19,402 17,121 39 Other 66,325 49,765 52,561 52,441 51,551 51,229 49,138 49,561 48,882 54,462 40 Other foreigners 93,608 93,732 94,026r 91,063 93,874 94,634 96,985 96,705 106,660 105,684 41 Banks' own liabilities 79,309 74,801 72,174r 67,446 69,112 70,461 72,867 72,862 81,268 76,991 42 Demand deposits 9,711 9,004 lO^lO7 9,308 9,297 9,529 9,667 10,614 9,895 9,970 43 Time deposits 64,067 57,574 48,936r 46,597 45,798 44,871 46,010 45,923 45,784 44,675 44 Other 5,530 8,223 12,928r 11,541 14,017 16,061 17,190 16,325 25,589 22,346 45 Banks' custodial liabilities5 14,299 18,931 21,852 23,617 24,762 24,173 24,118 23,843 25,392 28,693 46 U.S. Treasury bills and certificates 6,339 8,841 10,053 11,215 11,333 11,260 10,594 1100,,552200 1100,,222288 11,123 47 Other negotiable and readily transferable instruments 6,457 8,667 10,207 11,074 11,973 11,582 12,093 11,827 13,327 15,145 48 Other 1,503 1,423 1,592 1,328 1,456 1,331 1,431 1,496 1,837 2,425 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 7,073 7,456 9,111 9,582 10,388 9,389 9,481 11,264 17,533 17,089 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 1993 11999900 11999911 11999922 May June July Aug. Sept. Oct. Nov.P AREA 1 Total, all foreigners 759,634 756,066 810,259" 7%,836" 824,957" 821,788" 846,626" 862,147" 862,211 881,107 2 Foreign countries 753,716 747,085 800,909" 787,902" 815,627" 812,201" 834,261" 850,738" 851,227 868,477 3 Europe 254,452 249,097 307,670" 313,386" 324,252" 321,005" 335,460" 340,374" 357,815 370,141 4 Austria 1,229 1,193 1,611 1,525 1,4% 1,415 1,614 1,672" 1,808 1,820 5 Belgium and Luxembourg 12,382 13,337 20,567" 21,099 21,817 20,805 23,345 23,635" 24,641 27,548 6 Denmark 1,399 937 3,060 2,464 3,088 3,983 3,023 3,135 5,084 4,151 7 Finland 602 1,341 1,299 2,185 2,580 2,873 2,667" 2,347 2,712 2,250 8 France 30,946 31,808 41,411" 33,825 33,744 33,963 36,517" 40,622 43,034 36,643 9 Germany 7,485 8,619 18,630" 23,959 22,752 24,498 22,199 22,530 22,820 27,120 10 Greece 934 765 913 859 819 1,078 1,122 1,378 1,366 1,704 11 Italy 17,735 13,541 10,041 9,089 10,402 10,721 11,426 11,285" 10,431 10,915 12 Netherlands 5,350 7,161 7,365" 13,903 11,271 10,465 10,854 11,429 13,371 14,757 13 Norway 2,357 1,866 3,314" 2,690 2,840 2,757 2,833 2,901 2,7% 3,199 14 Portugal 2,958 2,184 2,465 2,674 2,764 2,894 3,015 3,180 3,215 3,229 15 Russia 119 241 577 847 1,129 1,406 2,254 2,229 2,623 2,530 16 Spain 7,544 11,391 9,793" 13,605" 15,507" 16,644" 17,207" 20,495 20,181 19,719 17 Sweden 1,837 2,222 2,953" 2,140 2,336 2,210 1,460 3,474" 2,355 2,672 18 Switzerland 36,690 37,238 39,440 41,775 41,270 40,494 40,987 41,909" 43,195 42,930 19 Turkey 1,169 1,598 2,666 2,761 2,497 2,882 2,618 2,553 2,897 2,947 20 United Kingdom 109,555 100,292 111,805" 106,111" 115,251 113,171 118,793 116,205" 130,941 135,795 21 Yugoslavia 928 622 504 510 512 501 511 524 541 546 22 Other Europe and former U.S.S.R.12 ... 13,234 12,741 29,256 31,365" 32,177 28,245 33,015" 28,871" 23,804 29,666 23 Canada 20,349 21,605 22,420" 21,331 20,051 22,264 23,917 25,147" 27,591 24,205 24 Latin America and Caribbean 332,997 345,529 317,228" 307,476" 316,654" 315,885" 316,747" 326,346" 312,719 318,694 25 Argentina 7,365 7,753 9,477 11,339 11,289 14,120 14,579 14,051" 14,319 13,694 26 Bahamas 107,386 100,622 82,284" 80,356" 80,713" 73,414 73,790 77,8%" 75,005 76,820 27 Bermuda 2,822 3,178 7,079 5,297 6,074 6,%9 6,931 7,239" 8,021 7,287 28 Brazil 5,834 5,704 5,584 5,339 4,936 5,425 5,299 5,268" 5,057 5,069 29 British West Indies 147,321 163,620 153,033" 142,797" 151,695" 151,519" 149,897" 156,953" 146,040 154,986 30 Chile 3,145 3,283 3,035 3,520 3,552 3,934 3,5% 3,867 3,952 3,455 31 Colombia 4,492 4,661 4,580 4,338 4,405 4,464 4,383 3,988 3,025 3,101 32 Cuba 11 2 3 2 3 5 5 6 7 7 33 Ecuador 1,379 1,232 993 956 924 889 860 819 868 851 34 Guatemala 1,541 1,594 1,377 1,323 1,397 1,304 1,315 1,278" 1,275 1,243 35 Jamaica 257 231 371 289 341 341 364 375 376 403 36 Mexico 16,650 19,957 19,454" 23,373" 22,318" 24,138" 24,833" 24,414" 24,249 21,946 37 Netherlands Antilles 7,357 5,592 5,205 3,813 4,059 4,159 5,413 4,695" 5,283 4,726 38 Panama 4,574 4,695 4,177 4,054 3,749 3,747 3,657 3,743 3,567 3,466 39 Peru 1,294 1,249 1,080 977 979 891 898 903 873 890 40 Uruguay 2,520 2,0% 1,955 1,742 1,775 1,775 1,822 1,734 1,716 1,659 41 Venezuela 12,271 13,181 11,387 11,644 12,242 12,373 12,782 12,868 12,903 13,060 42 Other 6,779 6,879 6,154 6,317 6,203 6,418 6,323 6,249 6,183 6,031 43 Asia 136,844 120,462 143,540" 133,948" 143,166" 143,132" 147,517" 147,648" 141,363 144,475 China 44 People's Republic of China 2,421 2,626 3,202 3,008 2,885 2,728 3,292 3,261 3,280 3,186 45 Republic of China (Taiwan) 11,246 11,491 8,408" 8,773" 9,548" 9,999" 9,483" 9,%9 9,804 10,960 46 Hong Kong 12,754 14,269 18,499" 15,754" 15,890 16,193 15,621 16,388" 16,389 18,573 47 India 1,233 2,418 1,399" 1,343" 1,315 1,053 1,211 1,288 1,251 1,525 48 Indonesia 1,238 1,463 1,480 1,861 2,132 1,688 1,582 1,715 1,504 1,674 49 Israel 2,767 2,015 3,773" 3,163 2,764 2,790 2,729 3,241 5,450 4,582 50 Japan 67,076 47,069 58,435" 54,469" 62,791" 62,233" 67,999" 65,626" 60,171 58,866 51 Korea (South) 2,287 2,587 3,337 3,922 3,842 4,298 3,873 4,356" 3,889 4,409 52 Philippines 1,585 2,449 2,275 2,458 2,933 3,1% 2,648 2,735 2,192 1,902 53 Thailand 1,443 2,252 5,582 5,377 5,233 5,830 6,058 5,846" 6,446 6,231 54 Middle Eastern oil-exporting countries13 15,829 15,752 21,437" 19,274" 20,327 18,409 19,141 17,255" 14,681 15,489 55 Other 16,965 16,071 15,713" 14,546 13,506 14,715 13,880 15,968" 16,306 17,078 56 Africa 4,630 4,825 5,884 6,415" 6,475 5,680 5,649 6,127 6,179 5,762 57 Egypt 1,425 1,621 2,472 2,922 2,784 1,880 2,018 2,457 2,220 2,089 58 Morocco 104 79 76 82" 119 138 78 86 87 NO 59 South Africa 228 228 190 198 265 172 233 275 367 272 60 Zaire 53 31 19 16 15 25 20 16 15 10 61 Oil-exporting countries 1,110 1,082 1,346 1,368 1,332 1,417 1,279 1,281 1,271 1,446 62 Other 1,710 1,784 1,781 1,829 1,960 2,048 2,021 2,012 2,219 1,835 63 Other 4,444 5,567 4,167" 5,346 5,029 4,235 4,971 5,0% 5,560 5,200 64 Australia 3,807 4,464 3,043" 4,449 4,078 3,253 3,890 4,045 4,434 3,853 65 Other 637 1,103 1,124 897 951 982 1,081 1,051 1,126 1,347 66 Nonmonetary international and regional organizations 5,918 8,981 9,350 8,934 9,330 9,587" 12,365" 11,409" 10,984 12,630 67 International 4,390 6,485 7,434 5,388 5,812 6,028" 8,367" 7,679" 7,340 8,759 68 Latin American regional16 1,048 1,181 1,415 2,412 2,318 2,077 2,737 2,448 2,539 3,050 69 Other regional17 479 1,315 501 1,134 1,200 1,482 1,261 1,282 1,105 821 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 • March 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 May June Julyr Aug.r Sept/ Oct/ Nov.P 1 Total, all foreigners 511,543 514,339 499,437r 461,208r 482,549r 472,877 461,191 477,233 465,927 470,690 2 Foreign countries 506,750 508,056 494,355r 459,526' 480,469r 471,570 459,239 474,854 464,684 468,489 3 Europe 113,093 114,310 123,377r 118,196r 122,297 125,094 116,836 124,253 124,605 120,691 4 Austria 362 327 331 941 1,080 1,094 691 457 568 501 5 Belgium and Luxembourg 5,473 6,158 6,404 5,513 5,955 6,127 6,515 6,589 5,499 5,903 6 Denmark 497 686 707 628 721 835 693 631 1,056 1,261 7 Finland 1,047 1,907 l,418r 885 1,225 1,007 705 594 730 606 8 France 14,468 15,112 14,723r 11,629" 11,833 11,847 11,500 10,963 11,516 11,622 9 Germany 3,343 3,371 4,222r 6,089 6,236 7,746 6,766 7,994 7,569 6,960 10 Greece 727 553 717r 596 564 509 508 629 592 684 11 Italy 6,052 8,242 9,047r 8,218 9,250 8,153 8,839 8,985 8,055 8,415 12 Netherlands 1,761 2,546 2,468r 3,278 2,764 3,260 3,081 3,383 3,157 3,607 13 Norway 782 669 355r 676 789 876 941 841 779 598 14 Portugal 292 344 325 593 670 710 803 787 826 787 15 Russia 530 1,970 3,147 3,080 3,045 2,799 2,591 2,547 2,575 2,295 16 Spain 2,668 1,881 2,755r 3,441 3,607 5,117 4,184 3,652 4,746 4,387 17 Sweden 2,094 2,335 4,923r 4,229 4,062 5,131 4,278 4,619 4,111 3,531 18 Switzerland 4,202 4,540 4,717r 4,735 4,123 5,193 5,634 5,216 4,647 5,946 19 Turkey 1,405 1,063 962 1,508 1,584 1,492 1,549 1,418 1,638 1,790 20 United Kingdom 65,151 60,395 63,430"^ 59,671r 62,565 60,772 55,118 62,510 64,051 59,445 21 Yugoslavia2 1,142 825 569 550 548 547 547 542 535 549 22 Other Europe and former U.S.S.R.3 1,095 1,386 2,157r 1,936 1,676 1,879 1,893 1,896 1,955 1,804 23 Canada 16,091 15,113 13,845r 16,393 16,246r 17,776 17,373 19,009 15,756 15,575 24 Latin America and Caribbean 231,506 246,137 218,078r 197,083r 212,672r 208,294 207,554 215,634 212,008 216,688 25 Argentina 6,967 5,869 4,958 3,942 4,066 4,841 4,740 4,715 4,398 4,518 26 Bahamas 76,525 87,138 60,835r 56,198r 59,989"" 56,843 56,276 60,906 60,350 63,242 27 Bermuda 4,056 2,270 5,935r 3,089 4,319 8,578 7,122 5,550 8,915 7,565 28 Brazil 17,995 11,894 10,773r 10,710 12,319 10,842 10,927 11,294 11,675 11,677 29 British West Indies 88,565 107,846 101,507r 89,865r 96,986r 91,246 93,116 97,409 90,041 92,621 30 Chile 3,271 2,805 3,397 3,718 3,675 3,898 3,796 3,832 3,857 3,728 31 Colombia 2,587 2,425 2,750 2,876 2,847 2,886 2,916 2,921 2,957 3,040 32 Cuba 0 0 0 0 1 0 0 0 0 0 33 Ecuador 1,387 1,053 884 770 771 732 739 701 707 704 34 Guatemala 191 228 262 256 266 240 256 244 269 286 35 Jamaica 238 158 162 165 184 182 181 183 175 186 36 Mexico 14,851 16,567 14,991r 14,989r 15,32 lr 15,738 15,652 15,724 16,124 16,041 37 Netherlands Antilles 7,998 1,207 1,379 2,354 3,011 3,172 3,153 3,155 3,339 3,100 38 Panama 1,471 1,560 4,654 2,440 2,549 2,532 2,361 2,370 2,491 2,625 39 Peru 663 739 730 675 657 651 667 617 636 620 40 Uruguay 786 599 936 778 904 807 816 926 926 968 41 Venezuela 2,571 2,516 2,525 2,542 2,803 3,001 2,876 2,835 2,815 3,004 42 Other 1,384 1,263 1,400 1,716 2,004r 2,105 1,960 2,252 2,333 2,763 43 Asia 138,722 125,262 131,789r 120,983 122,134 113,182 111,196 109,095 105,494 110099,,228811 China 44 People's Republic of China 620 747 906 881 1,898 871 638 699 772 705 45 Republic of China (Taiwan) 1,952 2,087 2,046 1,561 1,840 1,549 1,585 1,594 1,674 1,847 46 Hong Kong 10,648 9,617 9,642r 10,420 9,804r 10,654 9,390 11,153 9,638 10,535 47 India 655 441 529 489 438 473 442 572 621 642 48 Indonesia 933 952 1,189 1,386 1,503 1,282 1,289 1,330 1,268 1,474 49 Israel 774 860 820 814 777 733 775 747 752 787 50 Japan 90,699 84,807 79,172r 71,908 71,327 62,726 64,890 60,263 60,307 61,781 51 Korea (South) 5,766 6,048 6,179r 7,152 7,428 7,587 7,245 7,098 7,123 7,129 52 Philippines 1,247 1,910 2,145 1,521 1,402 1,357 1,250 1,143 1,168 1,265 53 Thailand 1,573 1,713 1,867 1,763 1,865 2,006 2,018 2,143 2,146 2,109 54 Middle Eastern oil-exporting countries4 10,749 8,284 18.5401 17,937 17,437 16,976 15,912 14,251 13,580 13,853 55 Other 13,106 7,796 8,754 5,151 6,415r 6,968 5,762 8,102 6,445 7,154 56 Africa 5,445 4,928 4,279 3,663r 3,812 3,856 3,902 4,023 3,911 3,812 57 Egypt 380 294 186 151 177 148 168 176 160 218 58 Morocco 513 575 441 420 416 437 443 454 433 471 59 South Africa 1,525 1,235 1,041 805r 748 742 705 713 663 664 60 Zaire 16 4 4 3 3 4 4 3 3 4 61 Oil-exporting countries5 1,486 1,298 1,002 1,144 1,156 1,232 1,224 1,206 1,179 1,098 62 Other 1,525 1,522 1,605 1,140 1,312 1,293 1,358 1,471 1,473 1,357 63 Other 1,892 2,306 2,987r 3,208 3,308 3,368 2,378 2,840 2,910 2,442 64 Australia 1,413 1,665 2,243r 2,534 2,574 2,443 1,847 2,414 2,401 1,901 65 Other 479 641 744 674 734 925 531 426 509 541 66 Nonmonetary international and regional organizations6 4,793 6,283 5,082 1,682 2,080 1,307 1,952 2,379 1,243 2,201 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 May June July Aug.r Sept.r Oct.r Nov." 11 TToottaall 579,044 579,683 559,495 532,442 518,514 22 BBaannkkss'' ccllaaiimmss 511,543 514,339 499,437 461,208 482,549 472,877 461,191 477,233 465,927 470,690 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 41,900 37,126 31,367 29,609 29,431 32,788 30,310 31,940 31,342 29,693 44 OOwwnn ffoorreeiiggnn ooffffiicceess 304,315 318,800 303,991 282,560 298,483 280,100 275,295 286,604 269,905 281,585 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 117,272 116,602 109,342 94,769 94,018 93,101 94,009 96,146 91,904 92,112 66 DDeeppoossiittss 65,253 69,018 61,550 47,450 46,262 44,812 45,473 44,664 43,814 43,959 77 OOtthheerr 52,019 47,584 47,792 47,319 47,756 48,289 48,536 51,482 48,090 48,153 88 AAllll ootthheerr ffoorreeiiggnneerrss 48,056 41,811 54,737 54,270 60,617 66,888 61,577 62,543 72,776 67,300 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 67,501 65,344 60,058 49,893 41,281 1100 DDeeppoossiittss 14,375 15,280 15,452 12,960 9,343 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss 41,333 37,125 31,474 23,498 18,475 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss 11,792 12,939 13,132 13,435 13,463 MMEEMMOO 1133 CCuussttoommeerr lliiaabbiilliittyy oonn aacccceeppttaanncceess 13,628 8,974 8,655 8,160 8,189 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess 44,638 43,024 36,163 31,573 28,225 29,316 28,395 24,516 26,901 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 Dec. Mar. June Sept.p 1 Total 238,123 206,903 195,302 195,119 182,445 183,312 189,886 By borrower 2 Maturity of one year or less 178,346 165,985 162,573 163,325 152,226 154,648 162,181 3 Foreign public borrowers 23,916 19,305 21,050 17,813 21,239 17,962 21,226 4 All other foreigners 154,430 146,680 141,523 145,512 130,987 136,686 140,955 5 Maturity of more than one year 59,776 40,918 32,729 31,794 30,219 28,664 27,705 6 Foreign public borrowers 36,014 22,269 15,859 13,266 12,214 11,255 10,507 7 All other foreigners 23,762 18,649 16,870 18,528 18,005 17,409 17,198 By area Maturity of one year or less 8 Europe 53,913 49,184 51,835 53,300 54,871 54,405 57,249 9 Canada 5,910 5,450 6,444 6,091 7,884 7,979 9,835 10 Latin America and Caribbean 53,003 49,782 43,597 50,376 45,148 48,619 51,687 11 57,755 53,258 51,059 45,709 37,871 38,803 37,710 12 Africa 3,225 3,040 2,549 1,784 1,677 1,712 1,916 13 All other3 4,541 5,272 7,089 6,065 4,775 3,130 33,,778844 Maturity of more than one year 14 Europe 4,121 3,859 3,878 5,367 4,896 4,579 4,423 15 Canada 2,353 3,290 3,595 3,287 3,120 2,909 2,549 16 Latin America and Caribbean 45,816 25,774 18,277 15,312 14,574 13,828 13,519 17 4,172 5,165 4,459 5,038 5,063 4,809 4,736 18 Africa 2,630 2,374 2,335 2,380 2,130 2,050 2,049 19 All other3 684 456 185 410 436 489 429 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 • March 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 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept." 1 Total 340.9 320.1 338.4 343.6 351.7 358.7r 344.5r 346.5r 361.6r 377.6 388.4 2 G-10 countries and Switzerland 152.9 132.2 135.0 137.6 130.9 135.6r m.o1 132.9*" 142.4r 149.8 152.5 3 Belgium and Luxembourg 6.3 5.9 5.8 6.0 5.3 6.2 6.2 5.6 6.1 7.0 7.1 4 France 11.7 10.4 11.1 11.0 10.0 11.9 15.3 15.3 13.5r 14.0 12.1 5 Germany 10.5 10.6 9.7 8.3 8.4 8.8 10.9 9.3 9.9 10.8 12.4 6 Italy 5.0 4.5 5.6 5.4 8.0 6.4 6.5 6.7 7.6 8.0 7 Netherlands 3.1 3.0 3.0 4.7 4.3 3.3 3.7 2.8 3.6r 3.7 3.7 8 Sweden 2.2 2.1 1.9 2.0 1.9 2.2 2.3 3.0 2.5 2.5 9 Switzerland 7.1 4.4 3.9 3.4 3.2 4.6 5.2 4.8 5.3 4.7 5.6 10 United Kingdom 67.2 60.9 65.6 68.5 64.7r 65.6r 61.0r 60.8r 65.7r 73.5 74.6 11 Canada 5.9 5.8 5.8 6.5 6.5r 6.3r 6.3r 8.2r 8.1 9.7 12 Japan 32.3 24.0 23.5 22.6 21.1 18.7 18.9 19.3 20.4 17.9 16.9 13 Other industrialized countries 21.0 22.9 22.1 22.8 21.4 25.5 25.01 24.0 25.4r 27.2 26.0 14 Austria 1.5 1.4 1.0 .6 .8 .8 .7 1.2 1.2 1.3 .6 15 Denmark 1.1 1.1 .9 .9 .8 1.3 1.5 .9 .8 1.0 1.1 16 Finland .7 .6 .7 .8 .8 1.0 .7 .7 .9 .6 17 Greece 2.7 2.3 2.6 2.3 2.8 3.0 3.0 2.7r 3.1 3.2 18 Norway 1.6 1.4 1.4 1.5 1.7 1.6 1.2 1.8 1.8 2.1 19 Portugal .6 .5 .6 .5 .5 .5 .4 .7 .9 1.0 20 Spain 7.1 8.3 8.3 8.3 7.7 10.1 9.7r 8.91 9.5 10.5 9.3 21 Turkey 1.7 1.6 1.4 1.2 1.5 1.5 1.3 1.4 2.1 2.1 22 Other Western Europe 1.2 1.3 1.8 1.5 2.0 1.5 1.7 2.0 1.7 2.2 23 South Africa 1.8 1.6 1.9 1.8 1.7 1.7 1.7 1.6 1.3 1.2 24 Australia 1.8 2.4 2.7 2.3 2.2r 2.3 2.9 2.9 2.5 2.8 25 OPEC2 17.1 12.8 15.6 14.5 15.8 16.2 15.9 16.1 16.8 15.9 14.9 26 Ecuador 1.3 1.0 .8 .7 .7 .7 .7 .6 .6 .6 .5 27 Venezuela 5.0 5.6 5.4 5.4 5.3 5.4 5.2 5.3 5.6 5.6 28 Indonesia 2.7 2.8 2.7 3.0 3.0 3.0 3.0 3.1 3.1 2.8 29 Middle East countries 2.5 5.0 4.2 5.3 5.9 5.4 6.2 6.6 5.4 4.9 30 African countries 1.7 1.7 1.5 1.5 1.4 1.4 1.4 1.1 1.1 1.1 1.1 31 Non-OPEC developing countries 77.5 65.4 64.7 63.9 69.7 68.1 72.8 72.1 74.4r 76.6r 76.9 Latin America 32 Argentina 6.3 5.0 4.5 4.8 5.0 5.1 6.2 6.6 7.0 6.6 7.2 33 Brazil 19.0 14.4 10.5 9.6 10.8 10.6 10.8 10.8 11.6 12.3 11.6 34 Chile 4.6 3.5 3.7 3.6 3.9 4.0 4.2 4.4 4.6 4.6 4.7 35 Colombia 1.8 1.8 1.6 1.7 1.6 1.6 1.7 1.8 1.9 1.9 2.0 36 Mexico 17.7 13.0 16.2 15.5 17.7 16.3 17.1 16.0 16.8 16.8r 17.5 37 Peru .6 .5 .4 .4 .4 .4 .5 .5 .4 .4 .3 38 Other 2.8 2.3 1.9 2.1 2.2 2.2 2.5 2.6 2.6 2.7 2.6 Asia China 39 Peoples Republic of China .3 .2 .4 .3 .3 .3 .3 .7 .6 1.6 .5 40 Republic of China (Taiwan) 3.5 4.1 4.1 4.8 4.6 5.0 5.2 5.3 5.9 6.4 41 India 3.1 3.3 2.8 3.0 3.6 3.8 3.6 3.2 3.1 3.1 2.9 42 Israel .5 .5 .5 .4 .4 .4 .4 .5 .4 .4 43 Korea (South) 5.9 6.2 6.5 6.8 6.9 6.9 7.4 6.6 6.5 6.9 6.5 44 Malaysia 1.7 1.9 2.3 2.3 2.5 2.7 3.0 3.1 3.3 3.7 4.1 45 Philippines 4.1 3.8 3.6 3.7 3.6 3.1 3.6 3.6 3.4 2.9 2.6 46 Thailand 1.3 1.5 1.9 1.7 1.7 1.9 2.2 2.2 2.2 2.4 2.8 47 Other Asia3 1.7 2.0 2.0 2.3 2.5 2.7 2.7 2.7 2.6 3.0 Africa 48 Egypt .4 .4 .4 .4 .3 .5 .3 .2 .2 .2 .2 49 Morocco .9 .8 .7 .7 .7 .7 .6 .6 .5 .6 .6 50 Zaire , .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.0 1.0 .8 .7 .7 .6 .9 1.0 .8 .9 .8 52 Eastern Europe 3.5 2.3 1.8 2.4 2.9 3.0 3.1 3.1 2.9 3.2 3.0 53 Russia .7 .2 .4 .9 1.4 1.7 1.8 1.9 1.7 1.9 1.7 54 Yugoslavia 1.6 1.2 .8 .9 .8 .7 .7 .6 .6 .6 .6 55 Other 1.3 .9 .7 .7 .6 .6 .7 .6 .7 .7 .7 56 Offshore banking centers 38.4 44.7 54.6 54.2 63.0 61.4r 54.5r 58.3r 57.7 67.4 57 Bahamas 5.5 2.9 6.7 11.9 15.3 12 S? 8.91 6.9 9.6 6.9 12.4 58 Bermuda 1.7 4.4 7.1 2.3 3.9 5.1 3.8 6.2 4.1 4.5 5.5 59 Cayman Islands and other British West Indies 9.0 11.7 13.8 15.8 18.6 19.3 16.9 21.8 17.5r 15.6 15.1 60 Netherlands Antilles 2.3 7.9 3.9 1.2 1.0 .8 .7 1.1 1.6 2.5 2.8 61 Panama 1.4 1.4 1.3 1.4 1.6 1.9 2.0 1.9 2.0 2.1 2.1 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.3 9.7 14.0 14.4 14.0 14.91 15.2 13.8 16.6r 16.8 18.9 64 Singapore 7.0 6.6 7.7 7.1 8.5 6.4 6.8 6.5 8.4 9.3 10.4 65 Other5 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 30.5 39.9 44.4 48.0 47.8 48.6 36.8 39.7 39.5 47.3 47.6 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 States' Millions of dollars, end of period 1992 1993 Type of liability and area or country 11998899 11999900 11999911rr June Sept. Dec." Mar." June" Sept." 1 Total 38,764 46,043 44,549 46,122r 46,981" 45,218 45,776 45,881 48,147 2 Payable in dollars 33,973 40,786 38,893 39,270" 38,286" 37,159 37,501 36,558 38,447 3 Payable in foreign currencies 4,791 5,257 5,656 6,852r 8,695" 8,059 8,275 9,323 9,700 By type 4 Financial liabilities 17,879 21,066 22,344 23,178" 24,417" 23,244 23,610 24,175 25,928 5 Payable in dollars 14,035 16,979 17,968 17,777" 17,417" 16,587 16,785 16,434 18,178 6 Payable in foreign currencies 3,844 4,087 4,376 5,401" 7,000" 6,657 6,825 7,741 7,750 7 Commercial liabilities 20,885 24,977 22,205 22,944" 22,564" 21,974 22,166 21,706 22,219 8 Trade payables 8,070 10,683 9,267 10,285" 10,227" 9,893 10,005 9,683 9,080 9 Advance receipts and other liabilities 12,815 14,294 12,938 12,659 12,337 12,081 12,161 12,023 13,139 10 Payable in dollars 19,938 23,807 20,925 21,493" 20,869" 20,572 20,716 20,124 20,269 11 Payable in foreign currencies 947 1,170 1,280 1,451 1,695" 1,402 1,450 1,582 1,950 By area or country Financial liabilities 12 Europe 11,660 10,978 11,858 13,470" 14,262" 13,034 13,397 13,997 16,255 13 Belgium and Luxembourg 340 394 216 193" 256" 414 306 268 278 14 France 258 975 2,106 2,324 2,785 1,608 1,610 2,216 2,074 15 Germany 464 621 682 634 738 810 820 787 779 16 Netherlands 941 1,081 1,056 979 980 606 639 585 573 17 Switzerland 541 545 408 490 627 569 503 491 378 18 United Kingdom 8,818 6,357 6,383 7,963" 8,074" 8,357 8,965 8,995 11,583 19 Canada 610 229 292 362 345 516 576 492 663 20 Latin America and Caribbean 1,357 4,153 4,784 3,908" 3,997" 4,053 4,099 3,799 3,319 21 Bahamas 157 371 537 353 230 369 521 426 1,301 22 Bermuda 17 0 114 114 115 114 114 124 114 23 Brazil 0 0 6 10 18 19 18 18 18 24 British West Indies 724 3,160 3,524 22,,775577"" 2,933" 2,860 2,770 2,551 1,200 25 Mexico 6 5 7 88 12 12 13 11 15 26 Venezuela 0 4 4 4 5 6 5 5 5 27 Asia 4,151 5,295 5,352 5,349" 5,723" 5,607 5,477 5,717 5,541 28 Japan 3,299 4,065 4,116 4,245" 4,678" 4,568 4,495 4,564 4,552 29 Middle East oil-exporting countries 2 5 13 10 17 19 24 19 23 30 Africa 2 2 6 0 5 6 6 130 132 0 0 4 0 0 0 0 123 124 31 Oil-exporting countries3 100 409 52 89 85 28 55 40 18 32 All other4 Commercial liabilities 9,071 10,310 8,715 7,848" 7,492" 7,555 6,930 6,810 6,913 33 Europe 175 275 248 240 173 296 262 267 255 34 Belgium and Luxembourg 877 1,218 1,039 724" 756" 750 705 773 610 35 France 1,392 1,270 1,052 799" 851" 717 643 603 565 36 Germany 710 844 710 605 601 567 537 577 601 37 Netherlands 693 775 575 461 482 349 469 440 535 38 Switzerland 2,620 2,792 2,311 2,405 2,282 2,526 2,118 2,198 2,294 39 United Kingdom 40 Canada 1,124 1,261 1,014 1,109 1,114 1,001 991 933 831 41 Latin America and Caribbean 1,224 1,672 1,355 11,,881144 1,493 1,495 1,776 1,820 1,762 42 Bahamas 41 12 3 88 3 3 11 6 4 43 Bermuda 308 538 310 409 325 307 429 356 340 44 Brazil 100 145 219 218 121 209 236 226 214 45 British West Indies 27 30 107 73 85 24 34 16 36 46 Mexico 323 475 307 480 326 447 553 659 570 47 Venezuela 164 130 94 279 125 124 171 172 183 48 Asia 7,550 9,483 9,335 10,445 11,026 10,791 11,067 10,823 11,575 49 Japan 2,914 3,651 3,722 3,538 3,918 3,953 4,035 3,715 4,534 50 Middle Eastern oil-exporting countries2,5 1,632 2,016 1,498 1,778 1,813 1,791 1,796 1,815 1,816 51 Africa 886 844 715 777 675 556 675 665 558 52 Oil-exporting countries3 339 422 327 389 335 295 322 378 279 53 Other4 1,030 1,406 1,071 951 764 576 727 655 580 1. For a description of the changes in the international statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. Federal Reserve Bulletin, vol. 65, (July 1979), p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • March 1994 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1992 1993 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998899 11999900 11999911 June Sept. Dec.* Mar.* June* Sept.p 1 Total 33,173 35,348 45,121 46,517* 46,192* 41,637 45,569 41,174 41,561 2 Payable in dollars 30,773 32,760 42,548 43,492r 43,218* 39,047 42,704 38,093 38,357 3 Payable in foreign currencies 2,400 2,589 2,573 3,025r 2,974* 2,590 2,865 3,081 3,204 By type 4 Financial claims 19,297 19,874 27,744 28,977r 28,573* 23,532 26,073 21,791 23,177 5 Deposits 12,353 13,577 19,946 19,813r 19,524* 15,100 16,527 11,646 13,163 6 Payable in dollars 11,364 12,552 19,071 18,456r 18,387* 14,302 15,469 10,728 12,189 7 Payable in foreign currencies 989 1,025 875 1,357r 1,137 798 1,058 918 974 8 Other financial claims 6,944 6,297 7,798 9,164r 9,049* 8,432 9,546 10,145 10,014 9 Payable in dollars 6,190 5,280 6,906 8,433* 8,028* 7,667 8,793 9,221 9,276 10 Payable in foreign currencies 754 1,017 892 73 lr 1,021* 765 753 924 738 11 Commercial claims 13,876 15,475 17,377 17,540* 17,619* 18,105 19,4% 19,383 18,384 12 Trade receivables 12,253 13,657 14,465 14,846r 14,676* 15,547 17,140 16,953 15,458 13 Advance payments and other claims 1,624 1,817 2,912 2,694* 2,943* 2,558 2,356 2,430 2,926 14 Payable in dollars 13,219 14,927 16,571 16,603r 16,803* 17,078 18,442 18,144 16,892 15 Payable in foreign currencies 657 548 806 937 816 1,027 1,054 1,239 1,492 By area or country Financial claims 16 Europe 8,463 9,645 13,316 12,906r 11,301* 99,,331100 10,330 9,623 8,121 17 Belgium and Luxembourg 28 76 13 25 16 88 6 13 9 18 France 153 371 269 777 768 762 905 774 688 19 Germany .' 152 367 283 354* 292* 326 378 373 361 20 Netherlands 238 265 334 715 750 515 544 499 485 21 Switzerland 153 357 581 765 587 490 478 460 454 22 United Kingdom 7,4% 7,971 11,409 8,731r 8,078* 6,234 6,987 6,570 5,117 23 Canada 1,904 2,934 2,642 2,545 2,281 1,709 2,007 1,761 1,559 24 Latin America and Caribbean 8,020 6,201 10,704 12,160* 13,837* 11,122 9,718 6,704 10,067 25 Bahamas 1,890 1,090 814 568r 1,248* 658 320 697 494 26 Bermuda 7 3 8 12 65 40 79 258 197 27 Brazil 224 68 351 331 589 686 592 590 590 28 British West Indies 5,486 4,635 9,056 10,828r 11,492* 9,266 8,266 4,650 8,109 29 Mexico 94 177 212 244 239 286 235 270 385 30 Venezuela 20 25 40 32 26 29 23 24 25 31 Asia 590 860 640 952 717 807 3,263 2,961 2,726 32 Japan 213 523 350 705 471 643 3,066 2,444 2,199 33 Middle East oil-exporting countries2 8 8 5 4 4 3 3 10 5 34 Africa 140 37 57 57 71 79 128 125 88 35 Oil-exporting countries 12 0 1 0 1 9 1 1 1 36 All other4 180 195 385 357 366 505 627 617 616 Commercial claims 37 Europe 6,209 7,044 8,192 8,480* 8,146* 8,287 8,650 8,777 7,879 38 Belgium and Luxembourg 242 212 194 255 173 188 169 170 162 39 France 964 1,240 1,585 1,685 1,824 1,519 1,468 1,453 1,389 40 Germany 6% 807 954 922r 895 916 %1 968 862 41 Netherlands 479 555 645 666 588 546 724 556 391 42 Switzerland 313 301 295 394 305 352 425 441 374 43 United Kingdom 1,575 1,775 2,086 2,172 2,004 2,068 2,312 2,502 2,206 44 Canada 1,091 1,074 1,114 1,066* 1,143* 1,226 1,270 1,290 1,295 45 Latin America and Caribbean 2,184 2,375 2,655 2,737r 3,222* 2,997 3,401 3,379 2,973 46 Bahamas 58 14 13 12 12 27 18 16 19 47 Bermuda 323 246 264 291 256 255 195 239 225 48 Brazil 297 326 427 450* 409* 352 829 782 400 49 British West Indies 36 40 41 32 43 40 17 43 39 50 Mexico 508 661 840 861* 975* 907 974 880 830 51 Venezuela 147 192 203 253 307 340 336 310 268 52 Asia 3,570 4,127 4,594 4,500* 4,322* 4,695 5,310 5,028 5,325 53 Japan 1,199 1,460 1,900 1,798 1,776* 1,842 2,127 1,824 2,443 54 Middle Eastern oil-exporting countries 518 460 621 609 513 682 760 659 446 55 Africa 429 488 429 428 439 549 456 507 492 56 Oil-exporting countries3 108 67 95 73 60 78 75 97 107 57 Other4 393 367 393 329 347 351 409 402 420 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 1992r J N a o n v . . - May June Julyr Aug.r Sept.r Oct/ Nov.p U.S. corporate securities STOCKS 1 Foreign purchases 211,207 221,367 286,503 23,094 24,310 24,441 26,133 23,892 32,350 31,821 2 Foreign sales 200,116 226,503 269,480 22,308 23,467 25,046 23,693 23,023 27,840 28,684 3 Net purchases or sales (-) 11,091 -5,136 17,023 786 843 -605 2,440 869 4,510 3,137 4 Foreign countries 10,522 -5,169 16,775 790 815 -652 2,413 951 4,598 3,067 5 Europe 53 -4,927 8,168 -619 415 -185 670 434 3,095 1,375 6 France 9 -1,350 -164 -86 -66 45 -9 -152 198 45 7 Germany -63 -80 1,376 6 99 76 202 112 328 125 8 Netherlands -227 -262 -788 35 -91 -452 133 69 134 -769 9 Switzerland -131 168 2,648 50 178 369 354 -259 409 205 10 United Kingdom -352 -3,301 3,405 -689 195 -73 -204 570 1,709 1,443 11 Canada 3,845 1,407 -3,103 -132 -532 -1,400 -128 -5% -300 11 1? Latin America and Caribbean 2,177 2,203 4,645 509 72 413 613 139 1,245 935 13 Middle East1 -134 -88 -317 56 -22 -135 -44 10 -77 58 14 Other Asia 4,255 -3,943 7,235 910 1,073 632 1,204 977 602 602 15 Japan 1,179 -3,598 3,145 452 230 626 860 1,016 349 488 16 Africa 153 10 43 10 20 -49 63 3 5 6 17 Other countries 174 169 104 56 -211 72 35 -16 28 80 18 Nonmonetary international and regional organizations 568 33 248 -4 28 47 27 -82 --8888 7700 BONDS2 19 Foreign purchases 153,0% 214,922 256,006 19,325 24,091 22,738 22,288 24,845 28,465 28,797 20 Foreign sales 125,637 175,842 200,093 15,514 16,825 20,730 16,481 16,294 19,000 21,428 21 Net purchases or sales (—) 27,459 39,080 55,913 3,811 7,266 2,008 5,807 8,551 9,465 7,369 22 Foreign countries 27,590 37,964 55,442 3,843 7,229 2,018 5,801 7,865 9,326 7,342 2.3 Europe 13,112 17,435 19,555 360 2,710 -1,001 2,102 3,913 4,811 1,502 74 France 847 1,203 2,201 595 -12 -76 64 13 512 110 25 Germany 1,577 2,480 947 228 -241 2 -207 -419 913 -229 26 Netherlands 482 540 -385 -7 -134 11 317 219 -518 49 77 Switzerland 656 -579 -655 -219 -56 172 -327 -204 203 -80 28 United Kingdom 8,931 12,421 16,983 -303 3,033 -1,214 1,847 4,059 3,566 2,266 29 Canada 1,623 237 1,334 20 397 218 164 249 95 54 30 Latin America and Caribbean 2,672 9,300 12,811 1,262 1,770 901 1,678 846 1,727 2,649 31 Middle East1 1,787 3,166 2,874 115 202 147 158 171 375 432 3? Other Asia 8,459 7,545 17,709 2,062 2,089 1,382 1,432 2,373 2,256 2,765 33 Japan 5,767 -450 9,092 940 863 890 919 993 1,574 1,478 34 Africa 52 354 1,030 21 2 224 317 236 47 -2 35 Other countries -116 -73 129 3 59 147 -50 77 15 -58 36 Nonmonetary international and regional organizations -131 1,116 471 -32 37 -10 6 686 139 27 Foreign securities 37 Stocks, net purchases or sales (-) -31,967 -32,259 -62,294 -4,009r -6,353r -7,992 -12,229 -5,176 -7,242 -6,8% 38 Foreign purchases 120,598 150,051 214,418 16,363r 18,507r 19,607 20,737 21,475 24,738 28,385 39 Foreign sales 152,565 182,310 276,712 20,372r 24,860*" 27,599 32,966 26,651 31,980 35,281 40 Bonds, net purchases or sales (-) -14,828 -15,605 -53,087 -587r -7,535r -10,661 -1,046 -9,903 -2,449 40 41 Foreign purchases 330,311 513,589 754,931 58,761r 70,373r 68,741 75,850 80,145 76,034 87,222 42 Foreign sales 345,139 529,194 808,018 59,348r 77,908r 79,402 76,8% 90,048 78,483 87,182 43 Net purchases or sales (—), of stocks and bonds -46,795 -47,864 -115,381 -4,596r —13,888r -18,653 -13,275 -15,079 -9,691 -6,856 44 Foreign countries -46,711 -51,274 -115,518 -4,929"" —13,950*" -18,763 -13,329 -15,155 -10,040 -6,871 45 Europe -34,452 -31,350 -83,233 -5,433r -ll,721r -15,516 -10,544 -13,207 -5,004 -4,554 46 Canada -7,004 -6,893 -12,870 11 -1,277 -2,557 1,635 -1,394 -916 701 47 Latin America and Caribbean 759 -4,340 -4,425 l,082r 421 -633 -1,127 1,945 -1,051 -2,0% 48 -7,350 -7,923 -11,385 -186r -787r 121 -2,644 -2,221 -2,002 -499 49 Africa -9 -13 -198 -206r 9 4 7 14 14 0 50 Other countries 1,345 -755 -3,407 -197r -595r -182 -656 -292 -1,081 -423 51 Nonmonetary international and regional organizations -84 3,410 137 333 62 110 54 76 349 15 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 • March 1994 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1993 1993 Country or area 1991 1992 J N a o n v .- . May June July Aug. Sept. Oct. Nov.p Transactions, net purchases or sales (-) during period1 1 Estimated total 19,865 39,288 23,763 -1,159 -5,709r -1,531 13,980 -10,890r 3,965 15,139 2 Foreign countries 19,687 37,935 23,397 -877 -5,955 -1,144 14,368 —10,748r 5,090 14,551 3 Europe 8,663 19,625 -2,790 -190 1,473 -1,539 3,547 -5,917 3,500 -821 4 Belgium and Luxembourg 523 1,985 1,283 647 86 505 -218 207 -205 22 5 Germany -4,725 2,076 -10,549 -3,3% -1,100 -2,918 305 1,209 1,176 -751 6 Netherlands -3,735 -2,959 -326 108 -393 524 -167 137 -506 206 7 Sweden -663 -804 1,452 649 673 32 293 53 47 141 8 Switzerland 1,007 488 -1,421 108 888 -223 -74 -209 448 583 9 United Kingdom 6,218 24,184 6,688 2,948 2,147 1,455 3,787 -8,201 833 -1,890 10 Other Europe and former U.S.S.R 10,037 -5,345 83 -1,254 -828 -914 -379 887 1,707 868 11 Canada -3,019 562 10,406 522 133 2,270 324 -1,119 -342 1,358 12 Latin America and Caribbean 10,285 -3,222 86 -3,880 -1,419 -333 6,917 -3,311 3,701 2,018 13 Venezuela 10 539 333 152 5 2 -7 32 -102 19 14 Other Latin America and Caribbean 4,179 -1,956 -4,916 -1,863 711 510 1,178 -1,700 676 -88 15 Netherlands Antilles 6,097 -1,805 4,669 -2,169 -2,135 -845 5,746 -1,643 3,127 2,087 16 3,367 23,517 16,527 2,994 -5,687 -2,587 3,755 —574r -2,009 11,770 17 Japan -4,081 9,817 16,421 3,291 -301 -980 3,561 -1,809 156 5,661 18 Africa 689 1,103 1,041 -2 81 116 292 616 74 35 19 Other -298 -3,650 -1,873 -321 -536 929 -467 -443 166 191 20 Nonmonetary international and regional organizations 178 1,353 366 -282 246r -387 -388 -142r -1,125 588 21 International -358 1,018 -452 -318 403r -321 -698 -99r -869 824 22 Latin American regional -72 533 655 -17 106 -21 30 18 -23 40 MEMO 23 Foreign countries 19,687 37,935 23,397 -877 -5,955 -1,144 14,368 -10,748r 5,090 14,551 24 Official institutions 1,190 6,876 -2,401 -3,424 -760 —4,677r 724 3,181r 1,659 6,147 25 Other foreign 18,4% 31,059 25,798 2,547 -5,195 3,533r 13,644 -13,929r 3,431 8,404 Oil-exporting countries 26 Middle East2 -6,822 4,317 -8,920 -1,070 -2,443 -1,261 -1,172 -980 -820 -6 27 Africa3 239 11 4 0 0 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 Jan. 31, 1994 Rate on Jan. 31, 1994 Rate on Jan. 31, 1994 Country Country Country Month Month Month effective effective Percent effective Austria.. 5.25 Nov. 1993 Germany... 5.75 Oct. 1993 Norway 7.0 Oct. 1993 Belgium . 5.25 Dec. 1993 Italy 8.0 Oct. 1993 Switzerland 4.0 Dec. 1993 Canada.. 3.88 Jan. 1994 Japan 1.75 Sept. 1993 United Kingdom 12.0 Sept. 1992 Denmark 6.50 Nov. 1993 Netherlands 5.0 Dec. 1993 France .. 6.20 Dec. 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 1994 TTyyppee oorr ccoouunnttrryy 11999911 11999922 11999933 July Aug. Sept. Oct. Nov. Dec. Jan. 1 5.86 3.70 3.18 3.17 3.14 3.08 3.26 3.36 3.26 3.15 7 11.47 9.56 5.88 5.88 5.79 5.88 5.74 5.52 5.29 5.34 T 9.07 6.76 5.14 4.48 4.58 4.90 4.76 4.34 4.09 3.89 4 9.15 9.42 7.17 7.12 6.49 6.52 6.53 6.20 5.99 5.76 s 8.01 7.67 4.79 4.62 4.56 4.61 4.44 4.44 4.10 3.90 6 9.19 9.25 6.73 6.45 6.27 6.26 6.20 5.85 5.50 5.12 7 9.49 10.14 8.30 7.72 7.45 7.07 6.85 6.56 6.39 6.19 8 Italy 12.04 13.91 10.09 9.42 9.20 9.05 8.69 8.94 8.56 8.38 9 9.30 9.31 8.10 7.12 9.02 9.82 9.05 7.93 7.03 6.88 1100 7.33 4.39 2.96 3.22 3.02 2.59 2.44 2.31 2.06 2.13 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 • March 1994 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1993 1994 Country/currency unit 1991 1993 Aug. Sept. Oct. Nov. Dec. Jan. 1 Australia/dollar2 77.872 73.521 67.993 67.736 65.167 66.100 66.465 67.364 69.608 2 Austria/schilling 11.686 10.992 11.639 11.920 11.402 11.540 11.958 12.025 12.252 3 Belgium/franc 34.195 32.148 34.581 35.985 34.847 35.674 36.227 35.694 36.206 4 Canada/dollar 1.1460 1.2085 1.2902 1.3080 1.3215 1.3263 1.3174 1.3308 1.3173 5 China, P.R./yuan 5.3337 5.5206 5.7795 5.7906 5.8015 5.8013 5.8086 5.8210 8.7219 6 Denmark/krone 6.4038 6.0372 6.4863 6.8976 6.6336 6.6379 6.7667 6.7042 6.7697 7 Finland/markka 4.0521 4.4865 5.7251 5.8315 5.7868 5.7554 5.8143 5.7602 5.7004 8 France/franc 5.6468 5.2935 5.6669 5.9298 5.6724 5.7541 5.9069 5.8477 5.9207 9 Germany/deutsche mark 1.6610 1.5618 1.6545 1.6944 1.6219 1.6405 1.7005 1.7105 1.7426 10 Greece/drachma 182.63 190.81 229.64 237.64 232.56 237.93 243.43 245.51 250.29 11 Hong Kong/dollar 7.7712 7.7402 7.7357 7.7515 7.7384 7.7307 7.7272 7.7245 7.7251 12 India/rupee 22.712 28.156 31.291 31.612 31.578 31.505 31.434 31.440 31.440 13 Ireland/pound2 161.39 170.42 146.47 139.05 143.40 143.19 140.31 141.82 143.03 14 Italy/lira 1,241.28 1,232.17 1,573.41 1,603.75 1,569.10 1,600.93 1,666.31 1,687.17 1,699.45 15 Japan/yen 134.59 126.78 111.08 103.77 105.57 107.02 107.88 109.91 111.44 16 Malaysia/ringgit 2.7503 2.5463 2.5738 2.5514 2.5475 2.5478 2.5548 2.5737 2.7160 17 Netherlands/guilder 1.8720 1.7587 1.8585 1.9062 1.8214 1.8438 1.9084 1.9162 1.9516 18 New Zealand/dollar2 57.832 53.792 54.127 55.261 55.157 55.260 54.787 55.631 56.263 19 Norway/krone 6.4912 6.2142 7.0979 7.3579 7.0829 7.1755 7.3882 7.4211 7.5064 20 Portugal/escudo 144.77 135.07 161.08 173.27 166.28 169.60 173.93 174.58 176.04 21 Singapore/dollar 1.7283 1.6294 1.6158 1.6100 1.5972 1.5735 1.5950 1.5975 1.6037 22 South Africa/rand 2.7633 2.8524 3.2729 3.3660 3.4135 3.3924 3.3680 3.3788 3.4107 23 South Korea/won 736.73 784.58 805.75 811.94 811.84 813.45 809.79 812.57 813.55 24 Spain/peseta 104.01 102.38 127.48 138.51 130.54 132.18 137.27 140.42 143.04 25 Sri Lanka/rupee 41.200 44.013 48.205 48.750 48.854 48.954 49.187 49.322 49.460 26 Sweden/krona 6.0521 5.8258 7.7956 8.0466 8.0170 8.0195 8.2660 8.3501 8.1184 27 Switzerland/franc 1.4356 1.4064 1.4781 1.4966 1.4182 1.4432 1.4969 1.4634 1.4716 28 Taiwan/dollar 26.759 25.160 26.416 26.950 26.931 26.865 26.884 26.768 26.495 29 Thailand/baht 25.528 25.411 25.333 25.191 25.196 25.269 25.382 25.460 25.543 30 United Kingdom/pound 176.74 176.63 150.16 149.14 152.48 150.23 148.08 149.13 149.23 MEMO 31 United States/dollar3 89.84 86.61 93.18 93.29 95.47 95.73 96.54 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

69 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 December 31, 1992 May 1993 A70 March 31, 1993 August 1993 A70 June 30, 1993 November 1993 A70 September 30, 1993 February 1994 A70 Terms of lending at commercial banks February 1993 May 1993 A76 May 1993 August 1993 A76 August 1993 November 1993 A76 November 1993 February 1994 A76 Assets and liabilities of US. branches and agencies of foreign banks December 31, 1992 May 1993 A80 March 31, 1993 August 1993 A80 June 30, 1993 November 1993 A80 September 30, 1993 February 1994 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

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

71 Foreigners Profits, corporate, 35 Claims on, 55, 57, 60, 61, 62, 64 Liabilities to, 23, 54, 55, 57, 58, 63, 65, 66 REAL estate loans Banks, by classes, 18, 22, 23, 38 GOLD Terms, yields, and activity, 37 Certificate account, 11 Type of holder and property mortgaged, 38 Stock, 5, 54 Repurchase agreements, 7, 19, 22, 23, 24 Government National Mortgage Association, 33, 37, 38 Reserve requirements, 9 Gross domestic product, 51 Reserves Commercial banks, 20 HOUSING, new and existing units, 49 Depository institutions, 4, 5, 6, 13 Federal Reserve Banks, 11 INCOME, personal and national, 45, 51,52 U.S. reserve assets, 54 Industrial production, 45, 47 Residential mortgage loans, 37 Installment loans, 39 Retail credit and retail sales, 39, 40, 45 Insurance companies, 30, 38 Interest rates SAVING Bonds, 26 Flow of funds, 40,42, 43, 44 Consumer installment credit, 39 National income accounts, 51 Deposits, 16 Savings and loan associations, 38, 39, 40. (See also SAIF-insured Federal Reserve Banks, 8 institutions) Foreign central banks and foreign countries, 67 Savings banks, 38, 39 Money and capital markets, 26 Savings deposits (See Time and savings deposits) Mortgages, 37 Securities (See also specific types) Prime rate, 25 Federal and federally sponsored credit agencies, 33 International capital transactions of United States, 53-67 Foreign transactions, 65 International organizations, 57, 58, 60, 63, 64 New issues, 34 Inventories, 51 Prices, 27 Investment companies, issues and assets, 35 Special drawing rights, 5, 11, 53, 54 Investments (See also specific types) State and local governments Banks, by classes, 20, 21, 22, 23, 24 Deposits, 22, 23 Commercial banks, 4, 18, 20-23 Holdings of U.S. government securities, 30 Federal Reserve Banks, 11, 12 New security issues, 34 Financial institutions, 38 Ownership of securities issued by, 22, 23 Rates on securities, 26 LABOR force, 45 Stock market, selected statistics, 27 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 34 Banks, by classes, 20-23 Prices, 27 Commercial banks, 4, 18, 20-23 Federal Reserve Banks, 5, 6, 8, 11, 12 Student Loan Marketing Association, 33 Financial institutions, 38 Insured or guaranteed by United States, 37, 38 TAX receipts, federal, 29 Thrift institutions, 4. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 46 Time and savings deposits, 4, 14, 16, 19, 20, 21, 22, 23, 24 Production, 46, 48 Trade, foreign, 54 Margin requirements, 27 Treasury cash, Treasury currency, 5 Member banks (See also Depository institutions) Treasury deposits, 5, 11, 28 Federal funds and repurchase agreements, 7 Treasury operating balance, 28 Reserve requirements, 9 UNEMPLOYMENT, 45 Mining production, 48 U.S. government balances Mobile homes shipped, 49 Commercial bank holdings, 20, 21, 22, 23 Monetary and credit aggregates, 4, 13 Treasury deposits at Reserve Banks, 5, 11, 28 Money and capital market rates, 26 U.S. government securities Money stock measures and components, 4, 14 Bank holdings, 20-23, 24, 30 Mortgages (See Real estate loans) Dealer transactions, positions, and financing,3 2 Mutual funds, 35 Federal Reserve Bank holdings, 5, 11, 12, 30 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 11, 30, 66 NATIONAL defense outlays, 29 Open market transactions, 10 National income, 51 Outstanding, by type and holder, 28, 30 Rates, 25 OPEN market transactions, 10 U.S. international transactions, 53-67 Utilities, production, 48 PERSONAL income, 52 Prices VETERANS Administration, 37, 38 Consumer and producer, 45, 50 Stock market, 27 WEEKLY reporting banks, 22-24 Prime rate, 25 Wholesale (producer) prices, 45, 50 Producer prices, 45, 50 Production, 45, 47 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD W. KELLEY, JR. JOHN P. LAWARE 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 J. VIRGIL MATTINGLY, JR., General Counsel DIVISION OF RESEARCH AND STATISTICS 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 WILLIAM W. WILES, Secretary MARTHA BETHEA, Deputy Associate Director JENNIFER J. JOHNSON, Associate Secretary PETER A. TINSLEY, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary MYRON L. KWAST, Assistant Director PATRICK M. PARKINSON, Assistant Director DIVISION OF BANKING MARTHA S. SCANLON, Assistant Director SUPERVISION AND REGULATION JOYCE K. ZICKLER, Assistant Director RICHARD SPILLENKOTHEN, Director JOHN J. MINGO, Senior Adviser 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 HERBERT A. BIERN, Deputy Associate Director DONALD L. KOHN, Director ROGER T. COLE, Deputy Associate Director DAVID E. LINDSEY, Deputy Director JAMES I. GARNER, Deputy Associate Director BRIAN F. MADIGAN, Associate Director HOWARD A. AMER, Assistant Director RICHARD D. PORTER, Deputy Associate Director GERALD A. EDWARDS, JR., Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board JAMES D. GOETZINGER, Assistant Director DIVISION OF CONSUMER STEPHEN M. HOFFMAN, JR., Assistant Director LAURA M. HOMER, Assistant Director AND COMMUNITY AFFAIRS 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 WILLIAM SCHNEIDER, Project Director, National Information Center Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

74 Federal Reserve Bulletin • March 1994 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman J. ALFRED BROADDUS, JR. EDWARD W. KELLEY, JR. SUSAN M. PHILLIPS ROBERT P. FORRESTAL JOHN P. LAWARE ROBERT T. PARRY JERRY L. JORDAN 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 JOHN M. DAVIS, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary RICHARD G. DAVIS, Associate Economist JOSEPH R. COYNE, Assistant Secretary MARVIN S. GOODFRIEND, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID E. LINDSEY, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel LARRY J. PROMISEL, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel CHARLES J. SIEGMAN, Associate Economist MICHAEL J. PRELL, Economist THOMAS D. SIMPSON, Associate Economist EDWIN M. TRUMAN, Economist DAVID J. STOCKTON, Associate Economist JACK H. BEEBE, Associate Economist SHEILA L. TSCHINKEL, 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 MARSHALL N. CARTER, First District EUGENE A. MILLER, Seventh District J. CARTER BACOT, Second District ANDREW B. CRAIG, III, Eighth District ANTHONY P. TERRACCIANO, Third District JOHN F. GRUNDHOFER, Ninth District FRANK V. CAHOUET, Fourth District DAVID A. RISMILLER, Tenth District RICHARD G. TILGHMAN, Fifth District CHARLES R. HRDLICKA, Eleventh District CHARLES E. RICE, 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

75 CONSUMER ADVISORY COUNCIL JEAN POGGE, Chicago, Illinois, Chairman JAMES L. WEST, Tijeras, New Mexico, Vice Chairman BARRY A. ABBOTT, San Francisco, California GARY S. HATTEM, New York, New York JOHN R. ADAMS, Philadelphia, Pennsylvania RONALD HOMER, Boston, Massachusetts JOHN A. BAKER, Atlanta, Georgia THOMAS L. HOUSTON, Dallas, Texas MULUGETTA BIRRU, Pittsburgh, Pennsylvania KATHARINE W. MCKEE, Durham, North Carolina DOUGLAS D. BLANKE, St. Paul, Minnesota EDMUND MIERZWINSKI, Washington, D.C. GENEVIEVE BROOKS, Bronx, New York ANNE B. SHLAY, Philadelphia, Pennsylvania CATHY CLOUD, Washington, D.C. JOHN V. SKINNER, Irving, Texas ALVIN J. COWANS, Orlando, Florida REGINALD J. SMITH, Kansas City, Missouri MICHAEL D. EDWARDS, Yelm, Washington LOWELL N. SWANSON, Portland, Oregon MICHAEL FERRY, St. Louis, Missouri MICHAEL W. TIERNEY, Washington, D.C. ELIZABETH G. FLORES, Laredo, Texas LORRAINE VANETTEN, Troy, Michigan NORMA L. FREIBERG, New Orleans, Louisiana GRACE W. WEINSTEIN, Englewood, New Jersey LORI GAY, LOS Angeles, California LILY K. YAO, Honolulu, Hawaii BONNIE GUITON, Charlottesville, Virginia ROBERT O. ZDENEK, Greenwich, Connecticut THRIFT INSTITUTIONS ADVISORY COUNCIL BEATRICE D'AGOSTINO, Somerville, New Jersey, President CHARLES JOHN KOCH, Cleveland, Ohio, Vice President MALCOLM E. COLLIER, Lakewood, Colorado ROBERT MCCARTER, New Bedford, Massachusetts WILLIAM A. COOPER, Minneapolis, Minnesota NICHOLAS W. MITCHELL, JR., Winston-Salem, North Carolina PAUL L. ECKERT, Davenport, Iowa STEPHEN W. PROUGH, Irvine, California GEORGE R. GLIGOREA, Sheridan, Wyoming STEPHEN D. TAYLOR, Miami, Florida KERRY KILLINGER, Seattle, Washington JOHN M. TIPPETS, DFW Airport, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 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. ANNUAL STATISTICAL DIGEST: period covered, release date, COUNTRY MODEL, May 1984. 590 pp. $14.50 each. number of pages, and price. WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. 1981 October 1982 239 pp. $ 6.50 INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 440 pp. $9.00 each. 1982 December 1983 266 pp. $ 7.50 1983 October 1984 264 pp. $11.50 FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. December 1986. 264 pp. $10.00 each. 1984 October 1985 254 pp. $12.50 1985 October 1986 231 pp. $15.00 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1986 November 1987 288 pp. $15.00 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 CONSUMER EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 1992 December 1993 215 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages Consumer Handbook to Credit Protection Laws A Guide to Business Credit for Women, Minorities, and Small SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $30.00 per year or $.70 each in the Businesses United States, its possessions, Canada, and Mexico. Else- How to File A Consumer Credit Complaint where, $35.00 per year or $.80 each. Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System THE FEDERAL RESERVE ACT and other statutory provisions The Federal Open Market Committee affecting the Federal Reserve System, as amended through Federal Reserve Bank Board of Directors August 1990. 646 pp. $10.00. Federal Reserve Banks REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL Organization and Advisory Committees RESERVE SYSTEM. A Consumer's Guide to Mortgage Lock-Ins A Consumer's Guide to Mortgage Settlement Costs ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancings Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Home Mortgages: Understanding the Process and Your Right Vol. II (Irregular Transactions). 1969. 116 pp. Each volto Fair Lending ume $2.25; 10 or more of same volume to one address, Making Deposits: When Will Your Money Be Available? $2.00 each. Making Sense of Savings 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

77 STAFF STUDIES: Only Summaries Printed in the 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING MARKETS, by James V. Houpt. May 1988. 47 pp. BULLETIN Studies and papers on economic and financial subjects that are 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR of general interest. Requests to obtain single copies of the full THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Porter, and David H. Small. April 1989. 28 pp. text or to be added to the mailing list for the series may be sent to Publications Services. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE PRODUCTS, by Mark J. Warshawsky with the assistance of Staff Studies 1-145 are out of print. Dietrich Earnhart. September 1989. 23 pp. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSID- IARIES OF BANK HOLDING COMPANIES, by Nellie Liang 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF and Donald Savage. February 1990. 12 pp. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- Thomas F. Brady. November 1985. 25 pp. VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- Gregory E. Elliehausen and John D. Wolken. September DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr 1990. 35 pp. and Deborah Johnson. December 1985. 42 pp. 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE 1980-90, by Margaret Hastings Pickering. May 1991. ECONOMIC RECOVERY TAX ACT: SOME SIMULATION 21pp. RESULTS, by Flint Brayton and Peter B. Clark. December 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM 1985. 17 pp. MORTGAGE LOAN RATES IN TWENTY CITIES, by Stephen 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN A. Rhoades. February 1992. 11 pp. BANKING BEFORE AND AFTER ACQUISITION, by Stephen 163. CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR- A. Rhoades. April 1986. 32 pp. KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary A REEXAMINATION AND AN APPLICATION, by John T. Ann Taylor. March 1992. 37 pp. Rose and John D. Wolken. May 1986. 13 pp. 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING James T. Fergus and John L. Goodman, Jr. July 1993. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice 20 pp. P. White, Paul F. O'Brien, and Mary M. McLaughlin. 165. THE DEMAND FOR TRADE CREDIT: AN INVESTIGATION OF January 1987. 30 pp. MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES, 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A by Gregory E. Elliehausen and John D. Wolken. Septem- REVIEW OF THE LITERATURE, by Mark J. Warshawsky. ber 1993. 18 pp. April 1987. 18 pp. 166. THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET, 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and by Mark Carey, Stephen Prowse, John Rea, and Gregory Alice P. White. September 1987.14 pp. Udell. January 1994. Ill pp. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, by Glenn B. Canner and James T. Fergus. October 1987. REPRINTS OF BULLETIN ARTICLES 26 pp. A limited number of reprints of Bulletin articles are available. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. One reprint of an article will be sent on request to Publications Warshawsky. November 1987. 25 pp. Services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

79 1-A 2-B 3-C 4-D 5_E Baltimore Pittsburgh Ai< / Charlotte • Cincinnati Buffalo • ^ MAH ct NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F • Nashville 7-G 8-H ™_N Birmingham, FA" W! MI MO Jm* I Louisville MS 1A Detroit • -Tr—^ A .LB >J TN LA m ' Jacksonville IN X • Memphis New Orleans ... L"ittle ) MS J Rock I Miami ATLANTA • CHICAGO ST. LOUIS 9-1 MT . I ND • Helena 1 MN MI 1 SD • WL 1 MINNEAPOLIS 10-J 12-L / NE CO L Omaha • > MO Denver • NM |— Oklahoma City • OK KANSAS CITY 11-K Salt Uke City • ( Ho • u ston • Los Angeles San Antonio [ DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 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 David A. Hamburg 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 John N. Taylor, Jr. Charles A. Cerino1 Pittsburgh 15230 Robert P. Bozzone Harold J. Swart1 RICHMOND* 23219 Henry J. Faison J. Alfred Broaddus, Jr. Claudine B. Malone Jimmie R. Monhollon Baltimore 21203 Rebecca Hahn Windsor Ronald B. Duncan1 Charlotte 28230 Harold D. Kingsmore 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 Shelton E. Allred FredR. Herr1 Jacksonville 32231 Samuel H. Vickers James D. Hawkins1 Miami 33152 Dorothy C. Weaver James T. Curry III Nashville 37203 Paula Lovell Melvyn K. Purcell New Orleans 70161 Jo Ann Slaydon Robert J. Musso CHICAGO* 60690 Richard G. Cline Silas Keehn Robert M. Healey William C. Conrad Detroit 48231 J. Michael Moore Roby L. Sloan1 ST. LOUIS 63166 Robert H. Quenon Thomas C. Melzer John F. McDonnell James R. Bowen Little Rock 72203 Robert D. Nabholz, Jr. Karl W. Ashman Louisville 40232 To be announced Howard Wells Memphis 38101 Sidney Wilson, Jr. John P. Baumgartner MINNEAPOLIS 55480 Gerald A. Rauenhorst Gary H. Stern Jean D. Kinsey Colleen K. Strand Helena 59601 Lane Basso John D. Johnson KANSAS CITY 64198 Burton A. Dole, Jr. Thomas M. Hoenig Herman Cain Henry R. Czerwinski Denver 80217 Barbara B. Grogan Kent M. Scott Oklahoma City 73125 Ernest L. Holloway David J. France Omaha 68102 Sheila Griffin Harold L. Shewmaker DALLAS 75201 Cece Smith Robert D. McTeer, Jr. Roger R. Hemminghaus Tony J. Salvaggio El Paso 79999 Alvin T. Johnson Sammie C. Clay Houston 77252 Judy Ley Allen Robert Smith, III1 San Antonio 78295 Erich Wendl Thomas H. Robertson SAN FRANCISCO 94120 James A. Vohs Robert T. Parry Judith M. Runstad Patrick K. Barron Los Angeles 90051 Anita E. Landecker John F. Moore1 Portland 97208 William A. Hilliard E. Ronald Liggett1 Salt Lake City 84125 Gerald R. Sherratt Andrea P. Wolcott Seattle 98124 George F. Russell, Jr. Gordon Werkema1 •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 REGULATORY SERVICE To promote public understanding of its regulatory of marginable OTC stocks and its list of foreign functions, the Board publishes the Federal Reserve margin stocks. Regulatory Service, a three-volume looseleaf service The Consumer and Community Affairs Handbook containing all Board regulations as well as related contains Regulations B, C, E, M, Z, AA, and BB, and statutes, interpretations, policy statements, rulings, associated materials. and staff opinions. For those with a more specialized The Payment System Handbook deals with expeinterest in the Board's regulations, parts of this ser- dited funds availability, check collection, wire transvice are published separately as handbooks pertaining fers, and risk-reduction policy. It includes Regulation to monetary policy, securities credit, consumer affairs, CC, Regulation J, the Expedited Funds Availability and the payment system. Act and related statutes, the official Board commen- These publications are designed to help those who tary on Regulation CC, and policy statements on risk must frequently refer to the Board's regulatory mate- reduction in the payment system. rials. They are updated monthly, and each contains For domestic subscribers, the annual rate is $200 citation indexes and a subject index. for the Federal Reserve Regulatory Service and $75 The Monetary Policy and Reserve Requirements for each Handbook. For subscribers outside the Handbook contains Regulations A, D, and Q, plus United States, the price including additional air mail related materials. costs is $250 for the Service and $90 for each Hand- The Securities Credit Transactions Handbook con- book. All subscription requests must be accompanied tains Regulations G, T, U, and X, dealing with exten- by a check or money order payable to the Board of sions of credit for the purchase of securities, together Governors of the Federal Reserve System. Orders with related statutes, Board interpretations, rulings, should be addressed to Publications Services, mail and staff opinions. Also included are the Board's list stop 127, Board of Governors of the Federal Reserve System, Washington, DC 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A recent Federal Reserve publication, Guide to the dures as seasonal adjustment, extrapolation, and Flow of Funds Accounts, explains in detail how the interpolation. U.S. financial flow accounts are prepared. The The balance of the Guide contains explanatory accounts, which are compiled by the Division of tables corresponding to the tables of financial flows Research and Statistics, are published in the Board's data that appeared in the September 1992 Z.l release. quarterly Z.l statistical release, "Flow of Funds These tables give, for each data series, the source of Accounts, Flows and Outstandings." The Guide the data or the methods of calculation, along with updates and replaces Introduction to Flow of Funds, annual data for 1991 that were published in the published in 1980. September 1992 release. The 670-page Guide begins with an explanation of Guide to the Flow of Funds Accounts is available the organization and uses of the flow of funds for $8.50 per copy from Publications Services, Board accounts and their relationship to the national income of Governors of the Federal Reserve System, Washand product accounts prepared by the U.S. Depart- ington, DC 20551. Orders must include a check or ment of Commerce. Also discussed are the individual money order, in U.S. dollars, made payable to the data series that make up the accounts and such proce- Board of Governors of the Federal Reserve System. 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 to Business A Consumer's Credit Guide to CMkNtfto for Women, Mortgage Minorities, and Lock-Ins Small Businesses Costs Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis