Federal Reserve Bulletin, 1994-05

VOLUME 80 • NUMBER 5 • MAY 1994 FEDERAL RESERVE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. >S1/ '. i • ' . PUBLICATIONS COMMITTEE !> j, 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 365 U.S. INTERNATIONAL TRANSACTIONS 385 John P. LaWare, member, Board of Gover- IN 1993 nors, describes the actions the Board has taken to regulate bank sales of mutual funds and The U.S. current account deficit widened from presents the Board's views on what additional $66 billion in 1992 to $109 billion in 1993— regulatory or congressional action is necesthe largest deficit in six years. This broadest sary and says that the selling of mutual funds measure of the external deficit worsened and other investment products in a manner largely because U.S. domestic economic that is not misleading and that provides cusactivity gained momentum while growth in tomers with accurate and complete informathe major U.S. markets abroad on average tion is an important element of safe and sound was sluggish. All components of the curbanking that the Board intends to enforce, rent account either remained constant or before the Subcommittee on Financial Institudeteriorated. tions Supervision, Regulation and Deposit Insurance of the House Committee on Bank- 379 INDUSTRIAL PRODUCTION AND ing, Finance and Urban Affairs, March 8, CAPACITY UTILIZATION FOR 1994. MARCH 1994 389 Governor LaWare discusses regulatory and Industrial production rose 0.5 percent in other intiatives designed to stimulate bank March after a gain of 0.6 percent in February. lending, especially to small businesses, and At 115.6 percent of its 1987 average, indus- says that the Federal Reserve recognizes the trial production was 5.1 percent higher in highly important role that business firms play March than it was a year earlier. The utiliza- in the economy and the need to promote the tion of industrial capacity increased 0.2 per- flow of credit to these firms and that it will centage point, to 83.6 percent. continue to seek ways, consistent with safety and soundness standards, to achieve this 382 STATEMENTS TO THE CONGRESS objective, before the House Committee on Small Business, March 17, 1994. Alan Greenspan, Chairman, Board of Governors, presents the views of the Federal Reserve Board on proposals to consolidate the 393 ANNOUNCEMENTS banking regulators into a single agency and says that the Board agrees with the proposals' Action taken by the Federal Open Market objectives of reducing the government's costs Committee. of regulating and supervising banks and bank- Retirement of Silas Keehn as President of the ers' costs and burdens from duplicative exam- Federal Reserve Bank of Chicago. ination and overlapping supervision and, in general, of making the supervisory process Availability of some transcripts of meetings of more efficient and more accountable but the Federal Open Market Committee. believes that it is possible to achieve the Appointment of new member to the Consumer objectives without creating the risks of one Advisory Council. regulator that so trouble the Board, before the Senate Committee on Banking, Housing, and Establishment of temporary swap facility with Urban Affairs, March 2, 1994. Mexico. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publication of 80th Annual Report, 1993 of 410 LEGAL DEVELOPMENTS the Federal Reserve Board. Various bank holding company, bank service Proposal to amend Regulation Y. corporation, and bank merger orders; and pending cases. 395 MINUTES OF THE FEDERAL OPEN MARKET COMMITTEE 467 DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES At its meeting on February 3-4, 1994, the Committee affirmed the ranges for monetary List of directors by Federal Reserve District. growth in 1994 that it had established on a tentative basis at its meeting on July 6-7, A1 FINANCIAL AND BUSINESS STATISTICS 1993; these ranges were 1 to 5 percent for M2 These tables reflect data available as of and 0 to 4 percent for M3. The monitoring March 29, 1994. range for total domestic nonfinancial debt was left unchanged at 4 to 8 percent. In keeping A3 GUIDE TO TABULAR PRESENTATION with the Committee's usual procedures under the Humphrey-Hawkins Act, the ranges A4 Domestic Financial Statistics would be reviewed at midyear, or sooner if A45 Domestic Nonfinancial Statistics deemed necessary, in light of the behavior of A53 International Statistics the aggregates and ongoing economic and financial developments. A67 GUIDE TO STATISTICAL RELEASES AND For the intermeeting period ahead, the SPECIAL TABLES Committee adopted a directive that called for a slight increase in the degree of pressure on A68 INDEX TO STATISTICAL TABLES reserve positions and that did not include a presumption about the likely direction of any A84 BOARD OF GOVERNORS AND STAFF adjustment to policy during the intermeeting period. The directive stated that in the context A86 FEDERAL OPEN MARKET COMMITTEE of the Committee's long-run objectives for AND STAFF; ADVISORY COUNCILS price stability and sustainable economic growth, and giving careful consideration to A88 FEDERAL RESERVE BOARD economic, financial, and monetary develop- PUBLICATIONS ments, slightly greater or slightly lesser reserve restraint might be acceptable during the A90 MAPS OF THE FEDERAL RESERVE intermeeting period. The reserve conditions SYSTEM associated with this directive were expected to be consistent with moderate growth in M2 and A92 FEDERAL RESERVE BANKS, BRANCHES, M3 over the first half of 1994. AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1993 Catherine L. Mann of the Board's Division of Inter- 1. U.S. external balances, 1983-93' national Finance prepared this article. Billions of dollars The U.S. current account deficit widened from — Services y*^ ^ $66 billion in 1992 to $109 billion in 1993—the + largest deficit in six years. This broadest measure 0 of the external deficit worsened largely because Current account excluding j. special grants A /\ — 50 U.S. domestic economic activity gained momentum while growth in the major U.S. markets abroad —100 on average was sluggish. All components of the Merchandise trade\y current account either remained constant or —150 deteriorated. 1 1 1 1 1 1 1 1 1 1 1 1 The first component of the current account, trade 1985 1990 in goods and services, registered a deficit of 1. The data are quarterly at seasonally adjusted annual rates. SOURCE. Department of Commerce, Bureau of Economic Analysis, U.S. $77 billion, almost double the deficit of 1992. This international transactions accounts. widening was fully accounted for by a widening of the merchandise trade deficit, which measures trade the current account, fell nearly to zero for the year. in goods only, from $96 billion in 1992 to $132 bil- Net direct investment income fell a bit as payments lion in 1993. Exports increased $16 billion whereas on foreign direct investments in the United States imports rose $53 billion. On services transactions, recovered from the unusually low levels of recent the surplus of $56 billion in 1993 was unchanged years, whereas net portfolio payments increased as from that in 1992 (chart 1 and table 1). the growing net external debt outweighed lower Net investment income, the sum of net income interest rates. from direct investments and net payments on port- Net unilateral transfers were little changed in folio investments and the third major component of 1993. Transfers of $33 billion from the United 1. U.S. current account, 1988-93 Billions of dollars Changes, Item 1988 1989 1990 1991 1992 1993 1992-93 Goods and services, net -114.9 -90.3 -78.3 -27.9 -39.7 -76.7 -37.0 Trade balance -127.0 -115.2 -109.0 -73.8 -96.2 -132.4 -36.2 Services, net 12.1 24.9 30.7 45.9 56.4 55.7 -.7 Investment income, net 12.6 14.9 20.3 13.1 6.2 .1 -6.2 Direct investment, net 38.7 48.9 56.2 52.8 48.3 46.0 -2.3 Portfolio investment, net -26.1 -34.0 -35.9 -39.7 -42.0 -45.9 -3.9 Unilateral transfers, net -25.0 -26.1 -33.8 6.6 -32.9 -32.5 .4 Foreign cash grants to the United States * * 17.0 42.5 1.3 * -1.3 Other transfers -25.0 -26.1 -50.8 -35.9 -34.2 -32.5 1.7 Current account balance -127.2 -101.6 -91.9 -8.3 -66.4 -109.2 -42.8 MEMO: Current account balance excluding foreign cash grants -127.2 -101.6 -108.9 -50.8 -67.7 -109.2 -41.5 * Less than 0.05. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin • May 1994 2. Nominal and real exchange value of the dollar against developing countries, the dollar was nearly flat in currencies of selected countries, 1987-931 real terms in 1993, in contrast to its downward drift Index, 1987 = 100 of previous years (chart 2). 110 ECONOMIC INFLUENCES ON US. INTERNATIONAL TRANSACTIONS The proximate determinants of changes in U.S. trade flows and the external balance are (1) rates of economic activity in the United States and its trading partners abroad and (2) changes in relative prices. These factors are influenced by economic policies and private saving and investment decisions, which along with tastes, technology, and 1. The real exchange value of the dollar is calculated using weighted nominal factor endowments are the fundamental determiexchange rates adjusted with weighted consumer prices. The weights in the indexes are proportional to each country's share in world exports plus imports nants of trade flows and the external balance. during the years 1972-76. The countries in the G-10 index are Belgium- Over the past fifteen years, the importance of Luxembourg, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and the United Kingdom. The countries in the developing- rates of economic activity and changes in relative countries index are Brazil, Hong Kong, Korea, Malaysia, Mexico, the Philippines, Singapore, and Taiwan. 3. Historical perspective on the U.S. external balance and The data are quarterly, except for nominal G-10 rates, which are weekly. its proximate determinants, 1978-93' Billions of 1987 dollars States to countries abroad were split about equally U.S. real net exports of goods and services between private remittances and transfers and U.S. — —100 government grants (for development and related assistance and for financing of purchases of U.S. military goods). The behavior of the current account was little affected by changes in the prices of traded goods. Import and export prices remained generally flat during the year and only minimally affected Ratio of foreign to U.S. real GDP2 the growth of imports and exports. Prices were — —110 flat because their main determinants—costs and exchange rates—changed little. Cost pressures remained low as economic activity gained strength in the United States and in some foreign industrial economies only toward the end of the year, and most economies remained well below the level of output that might have triggered rising inflation. Index, 1986: Q4 = 100 CPI-adjusted foreign exchange value of the U.S. dollar3 The foreign exchange value of the dollar traded within a relatively narrow range in 1993 compared with previous years, though over the year it appreciated about 7 percent in nominal terms against the weighted average of currencies of the industrial Group of Ten (G-10) countries. The lagged effect of the real appreciation of the dollar against many of the European currencies in late 1992, however, 1980 1985 1990 tended to depress U.S. real net exports of goods and 1. The data are quarterly. In the top and middle panels, they are at seasonally adjusted annual rates. services, especially vis-&-vis the European markets, 2. The GDP for foreign countries is the weighted average of the G-10 which were also experiencing particularly weak countries, other industrial countries, and developing countries.The weights are based on U.S. bilateral nonagricultural exports (average of 1987-89). economic activity. Against the currencies of the 3. See note for chart 2 for the G-10 and eight developing countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1993 367 U.S. Trade, Economic Activity, and Relative Prices Many studies offer econometric estimates of the re- research differs as to the extent and selection of the data sponsiveness of real U.S. trade flows to real economic included for developing and industrial countries. Finally, activity and relative prices. Greatly simplified, the ana- the years covered by the analyses vary.1 lytical relationship between trade flows and the proximate determinants of trade discussed in the text is The table shows estimates, from a representative selecshown below in the log-linear form commonly used in tion of research, of the responsiveness of trade flows to econometric estimation: changes in economic activity and relative prices. These studies indicate the near unit value and symmetric relog(X) = aO + al log(y*) + a2 log(RPX) sponse of trade flows to changes in relative prices and show the asymmetric response of U.S. trade to changes in log(M) = bO + bl log(y) + b2 log(RPM) foreign and U.S. economic activity. where X and M are measures of the volume of exports Price Activity and imports; Y and Y* are measures of real economic responsiveness responsiveness SSttuuddyy ((yyeeaarr))22 activity for the United States and the foreign countries; Export Import Export Import and RPX and RPM are measures of the relative price of exports and imports. Coefficients al and bl are the Houthakker-Magee (1968) .... -1.51 -.54 .99 1.51 Warner-Kreinin (1983) -.95 -1.19 1.26 1.77 estimated responsiveness of exports and imports to Helkie-Hooper (1988) -.83 -1.15 2.19 2.11 changes in real activity; coefficients a2 and b2 are the Marquez (1990) -.99 -.92 1.54 1.94 Meade (1991) -.99 -1.02 1.25 2.02 estimated responsiveness of trade flows to changes in relative prices; and coefficients aO and bO are constants. 1. For an excellent review of the literature, see Morris Goldstein and Mohsin S. Kahn, "Income and Price Effects in Foreign Trade," in Ronald Empirical analyses differ in their choice of data to W. Jones and Peter B. Kenen, eds., Handbook of International Econommeasure activity and relative prices and in the econo- ics, vol. 2 (New York: North-Holland, 1985), pp. 1041-105. metric technique used. For example, some studies use 2. H.S. Houthakker and Stephen P. Magee, "Income and Price Elasticreal total exports and total imports as the measures of ities in World Trade," Review of Economics and Statistics, vol. 51 (1969), trade flows, whereas others use real nonagricultural pp. 111-25; William L. Helkie and Peter Hooper, "An Empirical Analysis of the External Deficit, 1980-1986," in Ralph C. Bryant, Gerald Holtham, exports and real non-oil imports. Still others further and Peter Hooper, eds., External Deficits and the Dollar (The Brookings disaggregate the computer sector. To measure activity, Institution, 1988), pp. 10-56; Jaime Marquez, "Bilateral Trade Elasticisome studies use real GDP whereas others use real ties," Review of Economics and Statistics, vol. 72 (1990), pp. 70-77; domestic demand. Finally, measures of relative prices Ellen E. Meade, "Computers and the Trade Deficit," in Peter Hooper and differ, with studies using unit value indexes, producer J. David Richardson, eds., International Economic Transactions (University of Chicago, 1991), pp. 61-85; Dennis Warner and Mordechai E. price indexes, or consumer price indexes as com- Kreinin, "Determinants of International Trade Flows," Review of Ecoponents of the relative price measures. Moreover, nomics and Statistics, vol. 65 (1983), pp. 96-104. prices in affecting the path of the U.S. external Econometric analyses of the joint effect of the balance has varied (chart 3). From 1981 to 1988, proximate determinants on the U.S. external balthe effect of the deterioration and subsequent ance indicate that U.S. imports and exports respond improvement in relative prices (as measured by the to a similar extent to changes in relative prices but real CPI-adjusted exchange value of the dollar) was differ importantly in their response to changes in substantial. During that period, growth rates of economic activity here and abroad (box). The estigross domestic product (GDP) in the United States mated responsiveness of U.S. imports to changes in and its principal trading partners abroad were simi- U.S. economic activity is about V/4-IV3 times lar, so they had less of an effect on the U.S. external larger than the responsiveness of exports to changes balance. Since 1989, however, relative prices have in foreign economic activity. This asymmetry changed little, and the differential rate of growth in implies that, even if the United States and its trad- GDP has been the more important factor influenc- ing partners were to grow at the same rate, the U.S. ing the U.S. external balance. external balance would worsen. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 Federal Reserve Bulletin • May 1994 Although it has been a consistent feature of 2. Growth of real GDP in selected foreign economies, econometric analyses over the past fifty years, the 1991-93 activity asymmetry presents a puzzle: In theory, Percent change, year over year growth rates of economic activity in countries Country 1991 1992 19931 around the world should tend to converge in the long run; but, unless relative prices change, this G-102 .3 .9 Canada -1.7 .7 2.4 convergence would yield an ever-growing U.S. Japan 4.1 1.2 .2 United Kingdom -2.3 -.5 2.0 external deficit. In an analysis of this puzzle, an Germany 6.9 1.7 -1.3 important question arises: What economic factors Developing countries2 5.0 4.1 4.2 may be missing from the equations for the U.S. Mexico 3.6 2.6 .4 Korea 8.5 4.8 5.3 external balance? One possibility is the way Taiwan 7.2 6.6 6.0 Hong Kong 4.2 5.3 5.3 changes in technology affect the international sup- China 7.7 12.8 13.4 plies of differentiated products and their prices. In 1. Data for 1993 are partly estimated. any case, for the near term, the current situation— 2. The countries in the G-10 index are Belgium-Luxembourg, Canada, flat relative prices, relatively stronger U.S. eco- France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and the United Kingdom. The countries in the developing countries index are nomic activity, and a large initial external deficit— Brazil, Hong Kong, Korea, Malaysia, Mexico, the Philippines, Singapore, compounds the effect of the asymmetry in income and Taiwan. The indexes are weighted by U.S. bilateral nonagricultural export shares (average of 1987-89). responsiveness on the U.S. external balance. SOURCE. Various national sources. rate of U.S. exports overall. But differentials in Relative Rates of Economic Activity GDP growth rates across foreign markets also The effect of differences in rates of GDP growth affect the magnitude and destination of U.S. exports for the behavior of the U.S. external balance ap- and gradually change the relative importance of pears strikingly in data from the 1990s. The U.S. U.S. export markets. In 1993, a return to more external balance improved in 1990 and 1991 when robust economic activity in several of the larger the rate of growth of U.S. GDP was very weak. In U.S. export markets boosted overall U.S. export contrast, in 1992 and 1993, U.S. real GDP growth growth, particularly late in the year. Relatively exceeded foreign growth, and the U.S. external faster rates of growth in expanding, but smaller, balance worsened (chart 4). export markets have over time increased their The overall movement of the U.S. external bal- importance for the growth of U.S. exports (table 2). ance is affected by how exports and imports indi- GDP growth in the G-10 countries generally vidually respond to changes in economic activity. remained quite slow in 1993, with two exceptions: Slow economic activity abroad slows the growth Canada and the United Kingdom. In both of these major U.S. trading partners, growth strengthened during the year. Canadian GDP was bolstered by 4. Changes in real gross domestic product and in the U.S. external balance, Q4 to Q4, 1990-93 strong investment and positive net exports, principally to the expanding markets in the United States. a of dollars Percent U.K. growth benefited from the depreciation of Foreign GDP1 sterling and the lowering of interest rates after the 40 departure of the pound from the exchange rate mechanism of the European Monetary System. In contrast, growth in Germany and Japan remained weak or negative. Reductions in official interest rates in Germany were relatively tentative, as U.S. goods and services balance money growth and inflation remained stubbornly high. In Japan, economic challenges, including the appreciation of the yen, declines in asset prices, 1990 1991 1992 1993 and capital-stock adjustment, as well as political 1. The GDP for foreign countries is the weighted average of the G-10 uncertainties, kept domestic demand and economic countries, other industrial countries, and developing countries.The weights are activity weak. based on U.S. bilateral nonagricultural exports (average of 1987-89). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1993 369 The developing countries had much stronger 6. Relative costs of production, 1987-93' overall economic activity than the industrial coun- Percentage change, Q4 to Q4 tries. But GDP growth rates in the developing countries in 1993 were about the same as those in United States 1992 and quite a bit weaker than those in 1990 and in 1991. In particular, economic activity in several important export markets—Mexico and the newly industrializing economies (NIEs) of Asia—slowed Foreign appreciably. In Mexico, both inflation and economic activity slowed as domestic economic poli- a • i-t-—0 cies effectively damped the rate of output growth, • which had been more rapid in 1991. Uncertainty 1 1 1 1 1 1 1 over the ratification of the North American Free 1987 1990 1993 Trade Agreement also contributed to the slowing of 1. The data are producer price indexes. The index for foreign countries is the weighted average of the G-10 countries.The weights are constant shares in U.S. growth, at least until after NAFTA was ratified late non-oil imports (average of 1987-89). in 1993. In Taiwan and Korea, domestic economic policies over the past two years have reined in Determinants of international price competitiverapid growth and the associated inflation and dete- ness include the relative costs of production, rioration of the external balance. exchange rates, and the behavior of profit margins. Domestic cost pressures were subdued and produced little change in competitiveness (chart 6). An Relative Prices of Exports and Imports appreciation of more than 5 percent of the real foreign exchange value of the dollar against the The other proximate determinant of U.S. external currencies of the G-10 and eight developing counperformance is the relative price, or price competitries, weighted by their shares in world trade, sometiveness, of those U.S. goods and services that what reduced U.S. export price competitiveness, compete against imports in the home market or but modest responses in the profit margins of U.S. against exports in markets abroad. The relative exporters offset this effect. When these foreign price of imports changed little in 1993 (chart 5). countries' currencies were weighted by shares in The relative price of U.S. exports was also about U.S. imports, the real exchange value of the dollar flat, on balance, in 1993 after having fallen in 1992 was flat, a factor contributing to the flat import following three years of improved international prices and to little change in the competitiveness competitiveness. of U.S. domestic products that compete against imports. 5. Relative prices of exports and imports, 1987-93' Little change in import or export price competi- Index, 1989= 1.0 tiveness in 1993 masked a downward trend in the price of traded goods relative to the market basket of traded and nontraded goods in the U.S. economy (chart 7). In recent years, when international competitiveness has not stemmed from inflation differentials or from changes in exchange rates, firms exposed to international competition may have increased productivity to reduce prices and improve performance. Since 1987, labor productivity in U.S. manufac- 1 I I I I I I I turing and the internationalization of U.S. manufac- 1987 1990 1993 turing (as measured by the ratio of the sum of 1. The data are quarteriy. exports and imports to domestic consumption) have 2. Ratio of foreign prices to U.S. export prices (nonagricultural, excluding computers). both increased (chart 8). A regression line relating 3. Ratio of U.S. import prices (non-oil, excluding computers) to U.S. GDP labor productivity and internationalization indideflator. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin • May 1994 7. Relative price of traded goods, 1987-93' 8. Labor productivity and internaiionalization, 1987-93' Index, 1989= 1.00 Labor productivity2 —1.00 — .95 —• — .90 1 1 1 1 1 1 1 1987 1990 1993 20 22 24 26 28 30 32 Trade shares2 1. Ratio of the sum of fixed-weight price indexes (nonagricultural export and non-oil import) divided by two to the U.S. CPI. The data are quarterly. 1. Labeled points are annual averages. Other data points are quarterly. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. 2. Percentage change of quarterly data at annual rates. national income and product accounts. 3. Imports plus exports divided by apparent domestic consumption (output plus imports less exports). cates a positive relationship, supporting the notion whereas import growth rose as the U.S. economy that the disciplines and challenges of international strengthened. In real terms, net exports of goods competition may be an important reason for and services deteriorated $57 billion (1987 dollars) increased productivity and the declining relative as real imports grew nearly three times faster than price of traded goods. real exports did. Agricultural exports were flat as U.S. output in the 1993 crop year fell because of floods and droughts. The value of oil imports was DEVELOPMENTS IN MERCHANDISE AND steady as a sharp drop in the price of imported oil SERVICES TRADE offset a large increase in the quantity imported. Falling prices yielded large increases in the quan- In 1993, sluggish economic activity abroad re- tity of computer imports and exports, but in terms strained the growth of goods and services exports, of value, computer imports grew moderately while 3. U.S. merchandise trade, 1991-93 Billions of dollars, seasonally adjusted 1992 1993 IItteemm 11999911 11999922 11999933 Q4 Q1 Q2 Q3 Q4 Trade balance -74 -96 -132 -26 -29 -34 -36 -33 Exports 417 440 457 114 112 113 112 120 Agricultural 40 44 44 11 11 11 11 11 Nonagricultural 377 396 413 103 101 102 101 109 Computers 27 29 29 8 7 7 7 8 Other capital goods 140 148 154 38 37 39 37 41 Consumer goods 46 50 53 13 13 13 14 14 Automotive products 40 47 52 13 13 13 12 14 Industrial supplies 110 110 112 28 27 28 28 29 All other exports 14 12 13 3 3 3 3 3 Imports 491 536 589 140 141 147 148 153 Petroleum and products 52 52 52 14 13 14 13 12 Nonpetroleum 439 485 538 126 128 133 135 141 Computers 26 32 38 9 9 9 10 10 Other capital goods 95 102 114 27 27 28 28 31 Consumer goods 108 123 134 32 32 33 34 34 Automotive products 86 92 102 24 25 26 25 27 Industrial supplies 81 89 100 23 23 25 26 26 Foods and other imports 44 47 48 12 12 12 12 13 SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1993 371 exports were flat (table 3). Generally, prices for 4. U.S. nonagricultural exports, by importing region, most products changed little, so most of the growth 1990-93 in exports and imports was in volume rather than Billions of dollars, seasonally adjusted at annual rates value. Percentage Dollar change, Q4-Q4 share IImmppoorrttiinngg rreeggiioonn 1990 1991:Q4 1992:Q4 1993:Q4 Merchandise Exports Total 100.0 24.1 22.7 25.4 Industrial countries1 ... 66.2 2.7 -.9 12.3 Merchandise exports grew about AV2 percent in real Canada 22.5 5.2 3.4 11.8 Japan 11.4 -3.3 -1.2 -1.1 terms from the fourth quarter of 1992 to the fourth Western Europe 29.7 .6 -4.3 3.3 quarter of 1993, down from the 7 percent growth Developing countries1 . 33.8 21.4 23.6 13.1 rate for 1992 and well off the 9 percent pace of Latin America 14.1 10.6 8.2 4.0 Asian NIEs2 9.9 3.6 7.0 1.2 1991. For the first three quarters of 1993, export Other Asia3 7.7 5.4 7.0 7.1 growth in real terms was near zero. For the fourth 1. Composition as designated by the Department of Commerce: "Industriquarter, exports increased substantially with much al countries" comprises Japan, Canada, Western Europe, Australia, and of the increase resulting from shipments of automo- New Zealand. "Developing countries" comprises East and Central Europe, Latin America, Asian NIEs, Other Asia (and Middle East), the Caribbean, tive products to Canada and Mexico, machinery to Oceania, and Africa. the United Kingdom, and aircraft to OPEC and the 2. Comprises Hong Kong, Singapore, Taiwan, and Korea. 3. Includes China. Asian NIEs. Computer exports, a very important SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, export sector, grew 15 percent in real terms— U.S. international transactions accounts. somewhat slower than the extremely rapid pace of recent years. Exports of large jet aircraft fell about reflected the sources of internal growth in those 17 percent from their peak in early 1992, when countries. Exports to OPEC countries, where oil they accounted for nearly 6 percent of nonagricul- revenues have been depressed by declining oil tural exports. prices, increased only marginally. Shipments to In recent years, developing-country markets have Japan, the second largest trading partner, and to the been critical for U.S. export performance (table 4). sluggish economies in continental Europe actually Historically, the industrial countries have ac- declined. counted for about two-thirds of US. nonagricultural exports (indicated by the 1990 shares in the table); but exports to the developing countries Merchandise Imports accounted for virtually all the growth in U.S. exports in 1991 and 1992. Revived economic Merchandise imports grew about 14 percent in real growth in some of the industrial countries and the terms during 1993, somewhat faster than the 1992 cooling-off of growth in some of the developing pace of 11 percent and twice the 1991 recessioncountries resulted in a return to more normal pat- year pace of 7 percent. The growth in imports was terns in 1993, although the developing-country broadly based across commodity categories. The markets still accounted for more than half of U.S. growth in imports of machinery, autos, and conexport growth. sumer durables was faster than the average growth Almost half of the increase in merchandise rate for all imports, as domestic demand for these exports last year went to Canada, the largest U.S. products responded strongly to the environment of trading partner. A significant share of those exports lower interest rates in 1993. The fastest-growing were auto parts, which were reimported into the component, computers, accounted for one-third of United States to satisfy a strong U.S. demand overall growth in merchandise imports in real for automobiles. However, exports of industrial terms. supplies and materials and of industrial and ser- Just as U.S. export growth has responded to vice machinery were also strong, supporting differential growth rates in the destination markets, investment-led growth in Canada. Strong growth of the sources of U.S. non-oil imports have been consumer goods exports to Latin America and changing, although in this case the driving factor of machinery exports to Singapore and China appears to be differences in the relative prices of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin • May 1994 5. U.S. non-oil imports, by exporting region, 1990-931 9. Computer prices and trade, 1987-93 Billions of dollars, seasonally adjusted at annual rates Index i')S7 Billions of 1987 dollars Percentage Dollar change, Q4-Q4 share EExxppoorrttiinngg rreeggiioonn 1990 1991 :Q4 1992:Q4 1993:Q4 Total 100.0 16.8 47.6 59.3 Industrial countries — 65.3 -3.9 29.5 32.3 Canada 19.7 3.8 8.1 12.1 Japan 20.7 -.5 7.6 10.0 Western Europe 23.7 -6.7 14.1 10.4 Developing countries .. 34.7 20.7 18.1 27.0 Latin America 10.5 5.1 4.8 9.5 Asian NIEs 13.8 3.3 1.0 2.3 Other Asia 9.4 11.8 12.9 12.8 Surplus/deficit 1. See table 4, notes 1,2, and 3 and source. — - I imports across source markets. Imports from the • 0 1 1 industrial countries have historically accounted for about two-thirds of non-oil imports (indicated by the 1990 shares in table 5). However, the lagged effects of the depreciation of the dollar against the 1 1 1 1 1 1 1 1987 1990 1993 currencies of Europe in 1989 and 1990 encouraged 1. Fixed-weight price indexes are from U.S. national income and product a substitution toward imports from the developaccounts. ing countries. The share of the industrial countries 2. The data are quarterly at seasonally adjusted annual rates. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. returned to more normal patterns in 1993, although national income and product accounts. the developing countries still accounted for nearly half of U.S. imports. One of the most notable examples of this pattern and therefore did not significantly affect the level of change in the sources of U.S. non-oil imports of trade, the relative prices of computer products is the shift among the developing countries in continued to decline markedly, with the import and Asia. In 1990, the developing countries of Asia export quantities of computers, peripherals, and ("Asian NIEs" and "Other Asia" in tables 4 and 5) parts rising concomitantly (chart 9). Computers, accounted for about one-fourth of U.S. imports, and peripherals, and parts accounted for 16 percent of since then this group has accounted for about one- real non-oil imports and 15 percent of real nonagrithird of the increase in U.S. imports. However, cultural exports in 1993, up from 7 percent and rising wages in the Asian NEEs have encouraged 10 percent respectively in 1990. Moreover, the these economies to invest and shift production to deterioration in 1993 of $14 billion (in 1987 dolother Asian countries such as China, Thailand, and lars) in the real computer trade balance to a deficit Malaysia. Consequently imports from the NIEs of $23 billion (in 1987 dollars) accounted for more have fallen dramatically as a share of U.S. imports, than one-third of the overall deterioration in the whereas imports from other countries in Asia, par- real non-oil, nonagricultural, merchandise trade ticularly nondurable consumer goods from China, balance in 1993. have increased. In 1993, imports from these other Part of the deterioration in the computer balance Asian countries accounted for one-fifth of total reflected a relatively faster rate of economic activimports. ity in the United States. However, patterns of computer trade also derive from investment strategies around the world of U.S. multinational businesses. Computer Markets The value of U.S.-owned assets in the developing countries of Asia increased much more quickly While the relative prices of non-oil imports and during the 1980s than did the value of assets in nonagricultural exports were generally flat in 1993, Europe or other countries (chart 10). Over the same Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1993 373 10. Trade and investment links in computers, 1985-93 flows in computers, peripherals, and parts between the United States and these two countries, particularly Japan, have been large. Oil Markets Oil prices began 1993 at the relatively high level of approximately $20 per barrel spot for West Texas intermediate (WTI) (chart 11). Spot WTI reached its 1993 peak of $21 per barrel when OPEC appeared to have successfully curbed production in the face of sluggish oil demand. Almost immediately, however, it became clear that OPEC production cuts did not offset the combination of increased non-OPEC production and the reduced demand for oil caused by weak economic activity in most of the industrial world—so prices declined. Through the summer months, oil prices rose and fell as prospects for an accord between Iraq and the United Nations (which would allow Iraq to export oil) dimmed and brightened. Prices rallied briefly in late September and early October when OPEC announced a six-month production agreement, 1. Includes office equipment. 2. Data on the value of assets in Japan and Canada are confidential and are but they plummeted soon after on strong North Sea included in "rest of world." production and a continuation of slack demand. At 3. For 1988 only, data combine investment in Latin America and Asia. Data for investment in 1988 in Asia alone are confidential. the turn of the year, spot WTI was trading around SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. $14.50 per barrel. international transactions accounts. The quantity of oil imports continued to increase (table 6). These increases resulted from declining period, in the market for computers, peripherals, U.S. oil production (typical for a mature oil exploand parts, the trade deficit with the developing ration area), heavy stockbuilding (spurred by the countries of Asia worsened significantly, whereas relatively low oil prices), and gains in U.S. oil the trade surplus with Europe rose and then consumption (engendered by the continued pickup stagnated. These data, along with data on the local markets for computers and the relative costs of production 11. Oil prices, 1983-93' in different regions of the world, suggest the fol- Dollars per barrel lowing patterns of trade and investment: Investments in Europe initially were probably distributor- West Texas intermediate! ships for U.S. exports of finished computers, which jA . later were expanded into production sites to supply — 30 the local markets with finished computers. Investments in the developing countries of Asia have Bill more likely been production sites that assemble U V V- 20 finished products for the U.S. market, not the local market. yl J \j U.S. import A significant portion of computer trade does not 1 i i i V 1 1 1 1 1 1 1 1 appear to be linked to U.S. investment abroad, 1985 1990 however. The value of U.S.-owned assets in 1. The data are monthly. SOURCE. Petroleum Intelligence Weekly, various issues, and U.S. Department Canada and Japan is relatively small, but the trade of Commerce, Bureau of Economic Analysis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 Federal Reserve Bulletin • May 1994 6. U.S. oil consumption, production, and imports, selected 12. U.S. services trade, 1987-931 years, 1980-93 Ratio scale, billions of dollars Millions of barrels per day 175 Item 1980 1985 1991 1992 1993 P 150 Consumption 17.1 15.7 16.7 17.0 17.2 Production 10.8 11.2 9.9 9.8 9.6 Imports 6.9 5.1 7.6 7.9 8.5 p Preliminary. SOURCE. Department of Energy, Energy Information Administration. —100 in U.S. economic activity). For 1993 as a whole, imports increased 0.6 million barrels per day, to 8.5 million barrels per day. Surplus _ — 80 Services Transactions The surplus on trade in services remained unchanged in 1993 at $56 billion (table 7 and chart 12) mostly because of the sluggish economic activity abroad. One of the largest categories of services, in terms both of imports and exports and 1. The data are quarterly at seasonally adjusted annual rates. of the net surplus balance, is travel and passenger SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. fares associated with tourism. The net surplus of international transactions accounts. 7. Service transactions, 1990-93 Billions of dollars Item 1990 1991 1992 1993 Service transactions, net 31 46 56 56 Military, net -8 -6 -3 -1 Sales 10 11 11 11 Receipts 18 16 14 12 Exports Private services 138 153 168 175 Travel and passenger fares 58 64 71 74 Other transportation 22 22 23 24 Royalties and license fees 17 18 20 20 Education 5 6 6 7 Financial services 4 5 5 7 Insurance1 1 1 1 3 Premiums received 5 5 6 6 Losses paid 4 4 4 5 Telecommunications 3 3 3 4 Business, professional, technical services 7 11 13 14 Other private services 21 22 25 23 U.S. government miscellaneous services ... 1 1 1 1 Imports Private services 98 100 107 116 Travel and passenger fares ..... 48 45 51 54 Other transportation 23 23 23 25 Royalties and license fees 3 4 5 5 Education 1 1 1 1 Financial services 2 3 3 6 Insurance2 2 2 1 3 Premiums paid 10 11 12 13 Losses recovered 8 9 11 10 Telecommunications 6 7 7 7 Business, professional, technical services 2 3 4 4 Other private services 11 12 12 13 U.S. government miscellaneous services ... 2 2 2 2 1. Premiums received less losses paid. SOURCE. US. Department of Commerce, Bureau of Economic 2. Premiums paid less losses recovered. U.S. international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1993 375 8. U.S. net investment income, 1990-93 Telecommunications is one category of services Billions of dollars for which the net position is a deficit. Payments exceed receipts because U.S. residents call abroad Item 1990 1991 1992 1993 more frequently than foreigners call the United Investment income, net 20 13 0 States and because foreign phone charges exceed Direct investment income, net 56 53 48 46 U.S. charges. The deficit is small ($3 billion) and Receipts 59 50 50 56 Payments 3 -3 2 10 improved just slightly in 1993. Exports of "other services," which includes Portfolio income, net, -36 -40 -42 -46 Receipts 92 78 61 55 medical services, dipped a bit in 1993 whereas Private 82 70 54 50 Government ... 11 8 7 5 imports in this catch-all category rose. The net Payments 128 117 103 100 Private 87 76 62 59 surplus in this category—although dropping $1 bil- Government 41 42 41 42 lion, to $11 billion, in 1993—represented about SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, 20 percent of the overall surplus in services. U.S. international transactions accounts. Developments in the Nontrade Current $20 billion in these tourist services in 1993 was Account unchanged from that in 1992. The growth rate of tourist services exports, which represent foreign Net investment income, which continued its detourists visiting the United States, slowed as for- cline of recent years, was zero in 1993 (table 8). eign economic activity remained sluggish. Imports Net direct investment income fell a bit, and net of tourist services, which represent U.S. tourism portfolio payments rose. abroad, picked up a bit as U.S. economic activity Net direct investment income fell, as a rebound strengthened. in direct investment payments on foreign assets in Most other categories of services registered the United States more than offset an increase in constant or slightly smaller net surpluses. The receipts from U.S. direct investments abroad. The net surplus of royalties and license fees was substantial rise in direct investment payments reunchanged; it had been creeping upward over the flected in large part the writing-off of substantial 1990s. This net surplus balance of $15 billion in losses on real estate investments that had held 1993, the second largest net surplus category, repre- down payments. Moreover, the increase in foreign sents net payments to the United States for the use direct investment in the United States during the of intellectual property abroad. mid-1980s and the improved profit performance of Both imports and exports of business, profes- firms in the U.S. economy contributed to higher sional, and technical services grew slightly in 1993, direct investment payments. Receipts from direct and the net surplus balance rose a bit. The growth investment abroad were particularly strong in the rate of exports, however, slowed significantly financial services industries. mostly because of foreign economic conditions. Net portfolio investment payments rose only This recent slowing may appear greater than it moderately in 1993, as lower interest rates mitiactually is because of revisions to historical data: A gated the effects of an increase in the net liability 1991 benchmark survey, which added new types of position (chart 13). Since 1986, net portfolio payservices and required the reporting of smaller trans- ments have increased along with the net position. actions, may have inflated growth rates for previ- Since 1989, however, the rate of growth in net ous years. payments has slowed because of a fall in the rate of Exports of education services, which represent return on the net position (lower panel). This fall payments by foreign students studying in the has been damped somewhat since 1990 because the United States, and of financial services grew just rate of return on claims has fallen more than that on slightly in 1993. In education, the United States liabilities. The rate of return on liabilities has been enjoys a net surplus position, which rose to $6 bil- buoyed by a shift in the portfolios of foreigners lion in 1993. In financial services, imports and toward instruments of longer maturity. In contrast, exports just balanced in 1993. the rate of return on U.S. claims has been depressed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 Federal Reserve Bulletin • May 1994 13. Factors affecting net portfolio increase, 1986-93 by a shift toward equities, for which the dividend yield is generally less than the interest rate on bonds and deposits. DEVELOPMENTS IN CAPITAL ACCOUNT TRANSACTIONS The large U.S. current account deficit in 1993 was offset by substantial reported and unreported net capital inflows (table 9), including particularly large net official inflows. Gross private capital Percent flows both into and out of the United States were Rates of return on portfolio investment2 also large, but the net private inflow was relatively small. A substantial swing of the statistical discrepancy from negative to positive completes the financing picture. Official Flows Foreign official assets in the United States rose $71 billion in 1993, a large increase from the 1. The data for net payments are annual totals and for net liability position are previous years (table 9). Substantial additions to period averages. 2. For the net position, the data are the ratio of net payments to net liability Japanese holdings in the United States resulted position shown above. For claims (liabilities), the data are the ratio of total from Japanese intervention in exchange markets receipts (payments) to claims (liabilities). SOURCES. Department of Commerce, Bureau of Economic Analysis; and that was intended to counter periods of upward Federal Reserve Board. 9. Composition of U.S. capital flows, 1989-93 Billions of dollars Item 1989 1990 1991 1992 1993 Current account balance -102 -92 -8 -66 -109 Official capital, net -16 34 26 43 70 Foreign official assets in the United States 9 34 18 41 71 U.S. official reserve assets -25 -2 6 4 -1 Other U.S. government assets 1 2 3 -2 -0 Private capital, net 100 27 -3 36 13 Net inflows reported by U.S. banking offices 5 32 -8 44 47 Securities transactions, net 43 -34 10 15 -21 Private foreign net purchases of the following: U.S. Treasury securities 30 -3 19 37 24 U.S. corporate bonds1 28 12 27 31 61 U.S. corporate stocks 7 -15 10 -4 18 US. net purchases of foreign securities -22 -29 -45 -48 -125 Direct investment, net 35 25 -6 -28 -19 Foreign direct investment in the United States 68 48 24 2 32 U.S. direct investment abroad1 -33 -23 -30 -31 -50 Other 17 3 1 5 6 Statistical discrepancy 17 31 -15 -12 27 1. Transactions with finance affiliates in the Netherlands Antilles have SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, been excluded from direct investment outflows and added to foreign pur- U.S. international transactions accounts. chases of U.S. securities through 1992. This adjustment was discontinued in 1993 because of the assumption that virtually all the Eurobonds issued by Netherlands Antilles affiliates before mid-1984 have already come due. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1993 377 pressure on the exchange value of the yen. Addi- 10. Transactions in foreign securities by region, 1992-93 tions to the holdings of Mexico and of Argentina Billions of dollars resulted from foreign exchange market purchases Item 1992 1993 of U.S. dollars that were intended to sterilize capital inflows into those countries as their economic Gross transactions 1,375 2,289 climates improved. The positions of some other Net purchases 48 129 31 86 countries increased, in part because governments 7 15 such as Singapore accumulated proceeds from the Japan 4 3 Latin America and Caribbean 4 9 privatization of government-owned companies. Asia (excluding Japan) 4 12 As a result of the weakening of oil prices and Other 1 4 revenues, holdings of the OPEC countries drifted downward. to about $400 billion in 1993. In 1993, their net Private Capital Flows sales of U.S. Treasury securities continued but were more than matched by purchases of U.S. govern- The net inflow of private capital into the United ment agency securities. States overall totaled only $13 billion, as inflows Foreign investor activity in the U.S. stock market through banking offices rose a bit from the 1992 picked up substantially, particularly in the fourth pace, foreign net purchases of U.S. government and quarter. Unlike in 1992, most foreign investors agency securities increased moderately, and for- added substantially to their holdings of U.S. stocks; eign net purchases of U.S. corporate stocks recov- an exception was Canadian investors, who sold ered from a 1992 net outflow. These substantial U.S. stocks on net. Net foreign purchases of U.S. inflows were nearly matched by record U.S. net corporate bonds rose as Eurobond issuance by U.S. purchases of foreign securities. corporations increased substantially. Net inflows through the banking sector totaled In recent years, the deregulation of foreign finan- $47 billion in 1993, a small increase from those cial markets, higher returns in foreign markets, and in 1992. The large inflows were somewhat surpris- the desire to diversify portfolios have supported ing given the slow recovery of bank credit in greater demand by U.S. residents for foreign stocks the United States. The net inflows were partly and bonds. This continuing internationalization of accounted for by the substitution of Eurodollar financial markets was reflected in huge gross transborrowing for alternative financing sources, partic- actions in foreign securities: U.S. residents' gross ularly at the U.S. offices of Japanese-chartered transactions (purchases plus sales) in foreign secubanks. rities nearly doubled from those in 1992, to more In 1993, private foreign net purchases of U.S. than $2 trillion in 1993 (table 10). On net, U.S. government agency securities (combined with U.S. purchases of foreign securities rose from $48 bilcorporate securities in table 9) increased sharply, lion in 1992 to $129 billion in 1993 as net purto $32 billion, whereas net purchases of lower- chases of foreign bonds tripled and net purchases yielding U.S. Treasury securities declined to of foreign stocks doubled. $24 billion from the high figure of $37 billion in Even with the large net purchases of recent years, 1992. Although net purchases of U.S. Treasury foreign securities represent only about 3 percent of securities by Canadian and European investors U.S. residents' holdings of stocks and bonds. Morewere strong, net purchases by Japanese investors over, as shown in table 10, net purchases of securiweakened substantially from 1992 net inflows. ties in industrial countries continued to account for Financial institutions in the Caribbean have been the bulk of net purchases, although the dollar value increasingly active in the market for U.S. govern- of net purchases in markets outside the industrial ment securities. Gross transactions (purchases plus countries doubled to about $25 billion in 1993. In sales) in U.S. Treasury securities by institutions in Latin America, the Argentine and Mexican markets Bermuda, the British West Indies, and the Nether- were particularly attractive to U.S. investors. In the lands Antilles rose from about $300 billion in 1992 Asian NIEs, U.S. investors' net purchases were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 Federal Reserve Bulletin • May 1994 concentrated in Hong Kong and Korea; net sales of PROSPECTS securities from Taiwan continued. The supply of foreign securities of developing countries to the Buoyant U.S. economic activity in 1994 should international marketplace increased because of support continued strong growth in imports. But large, well-marketed privatizations, such as the export growth should also strengthen as growth in Singapore state telephone company and Yacimi- foreign industrial economies picks up and as the entos Petroliferos Fiscales and Hydronor power Mexican economy recovers from its recent slump. groups in Argentina, and Yankee bond issues by, Nevertheless, the trade deficit for U.S. goods and among others, Korea Electric Power. services is likely to continue worsening because of Foreign direct investment in the United States its initial size, the asymmetry in the responsiveness rebounded in 1993 but remained well below the of trade flows to changes in economic activity, and peak recorded in 1989. The rebound was due prin- a growing deficit in computers, peripherals, and cipally to a turnaround in flows from the European parts. countries, particularly the United Kingdom. Direct In the medium term, export and import prices are investment flows from Japan were near zero. likely to remain flat, in part because import and U.S. direct investment abroad rose to the record export competition should maintain downward level of $50 billion in 1993, swelled by increased pressure on domestic prices. At the same time, low reinvested earnings and new equity flows. While capacity utilization abroad, abundant oil supplies, the bulk of direct investment outflows were to and slow employment growth here and abroad Western Europe, direct investment flows to Latin should keep cost pressures low. America rose from $6 billion in 1992 to $10 billion Higher U.S. interest rates will raise the rate of in 1993. return on U.S. liabilities while the continued shift The statistical discrepancy is the residual entry in U.S. claims toward lower-yielding equities will that ensures that the balance of payments balances. slow the rise in the rate of return on U.S. claims. In recent years, it has been negative, suggesting the Thus, net investment payments will likely rise existence of unreported capital outflows or pay- faster than the net liability position rises. Payments ments for goods, services, or investment income. In on foreign direct investment in the United States 1993, the statistical discrepancy was positive, at will likely continue to rebound with U.S. economic $27 billion, suggesting unreported capital inflows. activity and the maturing of those investments. At One source of errors and omissions in the measure- the same time, receipts from U.S. direct investment ment of capital inflows, and thus a possible expla- abroad could pick up with increased rates of growth nation for their increase, is shipments of U.S. cur- in key foreign countries. On balance, U.S. net rency abroad, which accelerated in 1993. investment income is likely to deteriorate. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

379 Industrial Production and Capacity Utilization for March 1994 Released for publication April 15 ary, but the overall increase was held back by a drop in the production of motor vehicles and elec- Industrial production rose 0.5 percent in March tricity. Having reached a seasonally adjusted annual after a gain of 0.6 percent in February. The output rate of 13.9 million units in February, motor vehiin several industries picked up notably from the cle assemblies dropped back to 13.0 million units weather-related slowdowns of January and Febru- in March; 1994 marks the first year since the 1970s 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 —— TToottaall iinndduussttrryy 140 —— MMaannuuffaaccttuurriinngg 140 capacity • ~ CCaappaacciittyy — ^ ~ 120 — ^ — 120 ^ 100 100 "~rL ' Production Production 8800 8800 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing T TtilWatirm Utilization J I L J I L J I I L J I L J I I I I I L 1980 1982 1984 1986 1988 1990 1992 1994 1980 1982 1984 1986 1988 1990 1992 1994 All series are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 Federal Reserve Bulletin • May 1994 Industrial production and capacity utilization, March 19941 Industrial production, index, 1987=100 Percentage change CCaatteeggoorryy 11999933 11999944 19932 19942 MMaarr.. 11999933 ttoo Dec.r Jan.r Feb.r Mar.P Dec.r Jan.r Feb.r Mar.P MMaarr.. 11999944 Total 114.0 114.4 115.0 115.6 1.0 .4 .6 .5 5.1 Previous estimate 114.0 114.6 115.1 1.0 .5 .4 Major market groups Products, total3 113.0 113.4 114.2 114.4 .8 .4 .7 .3 4.6 Consumer goods 110.1 110.6 111.8 111.5 .4 .5 1.0 -.2 2.4 Business equipment 141.8 143.1 144.7 145.7 1.5 .9 1.1 .7 10.8 Construction supplies 101.3 100.1 99.1 100.3 1.8 -1.1 -1.0 1.1 5.5 Materials 115.5 115.8 116.3 117.2 1.3 .3 .4 .8 5.8 Major industry groups Manufacturing 115.4 115.5 116.3 117.0 1.2 .1 .7 .6 5.8 Durable 120.1 120.4 121.3 121.9 1.8 .3 .8 .5 8.4 Nondurable 109.7 109.6 110.1 111.0 .5 -.1 .5 .8 2.6 Mining 96.9 96.9 98.7 99.7 .0 .0 1.8 1.0 2.9 Utilities 115.8 119.9 118.5 116.3 -.2 3.5 -1.2 -1.8 -.9 Capacity utilization, percent MEMO Capacity, cceennttaaggee 1993 1994 cchhaannggee,, Average, Low, High, MMaarr.. 11999933 1967-93 1982 1988-89 Mar. Dec.r Jan.r Feb/ Mar.P ttoo MMaarr.. 11999944 Total 81.9 71.8 84.8 81.2 82.9 83.1 83.4 83.6 2.1 Manufacturing 81.2 70.0 85.1 80.1 82.3 82.2 82.5 82.8 2.4 Advanced processing 80.6 71.4 83.3 78.9 80.6 80.7 81.2 81.3 3.0 Primary processing 82.2 66.8 89.1 83.2 86.4 85.8 85.8 86.4 1.2 Mining 87.4 80.6 87.0 86.8 87.5 87.5 89.2 90.1 -.9 Utilities 86.7 76.2 92.6 87.9 86.2 89.1 87.9 86.2 1.1 1. Data seasonally adjusted or calculated from seasonally adjustec 3. Contains components in addition to those shown, monthly data. r Revised, 2. Change from preceding month. p Preliminary. that assemblies have run at or above a 13.0 million rapidly; in addition, the production of industrial unit pace in any month. At 115.6 percent of its and other equipment picked up again, gaining more 1987 average, industrial production was 5.1 per- than 1 percent after having slipped back somewhat cent higher in March than it was a year earlier. The during January and February. The output of defense utilization of total industrial capacity increased and space equipment fell further in March; it has 0.2 percentage point, to 83.6 percent. declined about 10 percent during the past year. When analyzed by market group, the data show The production of construction supplies, which that the output of consumer goods fell back 0.2 per- fell about 1 percent per month in January and cent in March, with gains in home goods and February as cold weather curtailed construction consumer nondurables mostly offsetting a large activity, advanced 1.1 percent in March. The prodecrease in automotive products. Within consumer duction of industrial materials rose 0.8 percent, nondurables, production rebounds at a number of with strong gains in computer parts and semiconmanufacturers more than offset a drop in the sale of ductors. The output of energy materials increased electricity for home use. despite the cutback in electricity generation; coal The output of business equipment rose 0.7 per- mining strengthened again in March after a 10 percent despite the cutback in the output of motor cent jump in February. vehicles and the continued decline in commercial When analyzed by industry group, the data show aircraft manufacturing. The production of informa- that manufacturing output increased 0.6 percent in tion processing equipment continued advancing March, with gains in all major industries other than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 381 transportation equipment. The factory operating average but 2.7 percentage points less than its high rate rose 0.3 percentage point, to 82.8 percent. during 1988 and 1989. Output increases of nearly Capacity indexes for computers, semiconductors, 1 percent or more in stone, clay, and glass products, light trucks, and appliances were revised up slightly paper and products, rubber and plastics products, for early this year; the aggregate effect of these and textiles helped boost the primary-processing revisions was to lower factory utilization for March operating rate. The utilization rate for advancedby 0.1 percentage point from what it otherwise processing industries edged up 0.1 percentage would have been. During the past year, utilization point, to 81.3 percent, as a decrease of 2.4 perin manufacturing has increased 2.7 percentage centage points in utilization for transportation points, while output has risen 5.8 percent. The equipment was more than offset by gains in other output gain is the largest twelve-month increase in industries. six years. The increase in coal mining pushed up the over- The utilization rate for primary-processing indus- all output of mining 1 percent in March. The output tries rose 0.6 percentage point, to 86.4 percent, of utilities fell back again as temperatures returned about 4 percentage points more than its 1967-93 to about their seasonal norms. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 Statements to the Congress Statement by Alan Greenspan, Chairman, Board • Third, there should be only one federal regof Governors of the Federal Reserve System, ulator for all the depository institutions in any before the Committee on Banking, Housing, and single banking organization. Urban Affairs, U.S. Senate, March 2, 1994 • Fourth, the U.S. central bank should continue to have its essential hands-on involvement I am pleased to appear today before the Senate in supervision and regulation. Banking Committee to give the views of the A consolidated single regulator would deprive Federal Reserve Board on proposals to consoli- our regulatory structure of what the Board condate the banking regulators into a single agency. siders to be the current invaluable restraint on We have prepared a detailed analysis of such any one regulator conducting inflexible, excesproposals, which I have attached to my state- sively rigid policies. Laws on bank regulation ment.1 My remarks this morning will highlight and supervision must be drawn very generally, that analysis. leaving the specifics to agency rulemaking. This The proposals to create one federal bank reg- vests the agencies with a broad mandate and a ulator have the clearly stated objectives of reduc- not inconsiderable amount of discretionary ing the government's costs of regulating and power. Hence, a safety valve is vitally needed to supervising banks, of reducing bankers' costs avoid the exercise of arbitrary actions. A denial and burdens from duplicative examination and of, or severe limitation of, charter choice closes overlapping supervision, and in general making off a safety valve, inevitably leading to greater the supervisory process more efficient and more micromanagement of banks and a lessened maraccountable. The Federal Reserve Board shares ket for bank credit. We must avoid a regulatory these goals but disagrees with the approach of structure that inhibits economic growth. one regulator for achieving these objectives. The current structure provides banks with a However, the Board believes that it is possible to method—albeit one neither easily accomplished achieve virtually all these proposals' objectives nor often taken—of shifting their regulator, an without creating the risks of one regulator that so effective test that provides a limit on the arbitrary trouble us. position or excessively rigid posture of any one In reaching this conclusion, the Board tested regulator. The pressure of a potential loss of various proposals against the fundamental prin- institutions has inhibited excessive regulation ciple that the purpose of regulation is to enhance and acted as a countervailing force to the bias of the capability of the regulated entity to contrib- a regulatory agency to overregulate. ute effectively to the nation's long-term eco- The dual banking system and multiple federal nomic growth and stability. We have concluded regulators have facilitated diversity, inventivethat for this to be accomplished, the following ness, and flexibility in our banking system, so four subsidiary principles must be achieved: important to a market economy subject to rapid • First, there should not be a single monolithic change. A single federal regulator would effecfederal regulator. tively end the dual banking system: It would • Second, every bank should have a choice of become an empty shell if a state-chartered entity federal regulator. had no choice of federal regulator or—reflecting a recent Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) provision— 1. The attachment to this statement is available from different asset powers. The dual banking system Publications Services, Board of Governors of the Federal cannot survive consolidation at the federal level. Reserve System, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

383 I, as well as my colleagues on the Board, believe day-by-day control of banking institutions, which that would be a tragic loss. would soon become less innovative and compet- Besides the effective loss of the dual banking itive—a severe loss to the nation. system, the single regulator contemplated in cur- Not only is it important that one of our regurent proposals would be disconnected from lators have macroeconomic responsibility so as broad economic policy issues. This is a problem to carry out the regulatory function properly, but because a regulator that does not have macro- also our central bank must continue to have economic responsibility for its actions is likely to hands-on involvement in supervision and regulainhibit prudent risk-taking by banks, thus limiting tion so as to effectively carry out its macroecoeconomic growth and stability. The central his- nomic responsibilities. Joint responsibilities toric purpose of banking is to take risks through make for better supervisory and monetary policy the extension of loans to businesses and others. than would result from either a supervisor di- Economic growth in our system could not occur vorced from economic responsibilities or a macwithout risk-taking by entrepreneurs and small roeconomic policymaker not involved in the reand large businesses. Risk-taking requires fi- view of individual bank's operations. Without nancing. Thus, either an unwillingness or an the hands-on experience of regulation and superinability of lenders to take risks would slow the vision, and the exposure to the operations of expansion of our nation's employment and in- banks and markets provided by such experience, come. This fact creates a significant policy trade- the Federal Reserve's essential knowledge base off in banking regulation, especially because of would atrophy. Its deliberations would become the government guarantee of bank deposits. On increasingly academic, and the nation's central the one hand, regulators are concerned about bank would soon resemble an ivory tower rather bank failures and their effects on the economy, as than an institution necessarily involved with the well as their cost to the insurance fund. On the day-to-day activities of our economic and finanother hand, banks need to take risks to finance cial system. It is our knowledgeable examiners growth. Tradeoffs are required, and a swing in and supervisors—knowledgeable about banks, either direction can create both short- and long- financial markets, and the payment systems that term problems. connect them—that provide the expertise the Federal Reserve needs. And the fact is that we Indeed, a single regulator with a narrow view simply could not retain such staff members if of safety and soundness and with no responsibilthey were not actively involved in the process; ity for the macroeconomic implications of its reading reports or joining as junior participants in decisions would inevitably have a long-term bias a handful of examinations would not be suffiagainst risk-taking and innovation. It receives no cient. plaudits for contributing to economic growth through facilitating prudent risk-taking, but it is Some have argued that most foreign central severely criticized for too many bank failures. banks are not involved in bank supervision and The incentives are clear. regulation. In fact, as described in more detail in The Federal Reserve's stabilization objectives the attachment, central banks in all but one cause us to seek to avoid either excessive tight- Group of Seven (G-7) country (Canada), in most ness or ease in our supervisory posture. The cases de jure but always de facto, are closely former leads inevitably to credit crunches, and involved with the supervision of banks in their the latter to credit policies that contribute, with a countries and internationally. More broadly, the lag, to bank losses and failures. This is not to say, central bank has either total or shared responsias some have advocated, that the Federal Re- bility for bank supervision in three-quarters of serve itself should be the only regulator. A the nations in the Organization for Economic single-regulator Federal Reserve would be prone Cooperation and Development (OECD). One exto arbitrary and capricious behavior as would ample that is frequently used by those who any other single bank regulator. We would thus believe that central banks in foreign countries are oppose such an initiative, because as a single not involved in supervision is the Bundesbank. regulator we would inevitably drift to increasing The facts show quite the contrary: The Bundes- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 Federal Reserve Bulletin • May 1994 bank has more supervisory staff than the German Finally, would a single bank regulator with no Federal Banking Supervisory Office, reviews the macroeconomic stabilization responsibilities auditors' reports before the Banking Supervisory have given the proper weights to financial market Office receives them, and has veto power over stability and economic growth? Without market certain liquidity and capital regulations of that expertise, would such a regulator have recogoffice. In all industrial countries, either central nized early enough many of the problems central banks or finance ministries, or both, are involved to resolution of these crises? with supervision because nations have come to In my judgment, the risk that the answer to all understand that bank supervision has economic these questions is "no" is too great to take. consequences that are important for stability and There are ways, short of the creation of a economic growth. single agency, to address the problems in the Removing the Federal Reserve from supervi- current regulatory structure and to reduce the sion and regulation would greatly reduce our costs of regulations. The crux of the issue is ability to forestall financial crises and to manage duplicative examinations of banks. This problem a crisis once it occurs. In a crisis, the Federal could be eliminated by a regulatory system that Reserve could always flood the market with maintained two federal regulators but provided liquidity through open market operations and that in general only one of those regulators discount window loans. But while rapid creation supervised all the depository institutions in any of liquidity is often a necessary response to a banking organization. crisis, responsibilities for supervision and regu- While there are many ways to achieve an lation give the Federal Reserve insight and the improved regulatory structure, one such apauthority to use less blunt and more precisely proach supported by the Federal Reserve Board calibrated techniques to manage such crises and, that could be implemented with a relatively modmore important, to avoid them. The use of such est series of reforms would contain the following techniques requires both the clout that comes provisions: with supervision and regulation and the under- • Merge the Office of the Comptroller of the standing of the linkages between supervision and Currency (OCC) and the Office of Thrift Superregulation and macroeconomic growth and sta- vision (OTS). This organization would become bility. the Federal Banking Commission. The Federal Reserve is required to play the • Remove the Federal Deposit Insurance Corkey role when systemic breakdown threatens. poration (FDIC) from examining healthy institu- The attachment to my statement provides some tions. detail about Federal Reserve involvement in fi- • Put all independent national banks, all lead nancial crises over the past decade. I request that national banks that are part of a holding comas you review it, you consider certain key ques- pany, and all thrift institutions under the purview tions. of the Federal Banking Commission, and put all Could the Federal Reserve without supervi- independent state banks and all lead state banks sory responsibilities have successfully managed that are part of a holding company under the the Mexican debt crisis of 1982, the 1985 collapse purview of the Federal Reserve. of privately insured thrift institutions in Ohio and • Provide that the supervisor of the lead de- Maryland, the stock market crash of 1987, or the pository in a banking organization also be the Drexel failure of 1990? supervisor and regulator of all the depository Would the banking community have been per- institutions in the organization regardless of the suaded to respond as they did in each of these charter class of those affiliates. cases by a central bank with much more limited • Finally, treat all U.S. activities of foreign authorities to affect events? Would the Federal banks as now, with adjustments as necessary to Reserve without supervisory knowledge or au- reflect the changes in the regulatory structure thority have been able to play a role in persuad- described above. ing many of the banks to complete the payments The Board has not yet adopted a position on necessary to prevent payments gridlock? the supervision and regulation of bank holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 385 companies and their nonbank affiliates. The fol- two-agency structure it is desirable to have relowing are two broad options, and a strong case sponsibility for supervision and regulation decan be made for each: fined clearly by charter class to preserve the dual • Under the first option, all holding companies banking system. The Board makes no case that and their nonbank affiliates could remain under responsibility for such banks—which account for the Federal Reserve's jurisdiction, continuing to almost one-quarter of bank assets—is needed for provide uniform rulemaking for competitive eq- financial stability and monetary policy purposes. uity and a substantial role for the Federal Re- However, responsibility over banks of various serve in shaping the financial structure, so useful sizes and locations, as under our existing authorfor stabilization and systemic risk purposes. ities, is required if the Federal Reserve is to • Under the second option, the jurisdiction of perform its functions effectively. virtually all holding companies could be split The Board's approach would achieve essenbetween the Federal Reserve and the proposed tially all the benefits of one consolidated regulator Federal Banking Commission on the basis of the while incurring virtually none of its risks. It elimcharter class of the lead bank. However, for inates duplicate supervision of depositories in a systemic risk reasons, jurisdiction over the hold- single banking organization and greatly reduces ing companies and nonbank affiliates of a modest overlapping regulation. It maintains the dual number of banking organizations that meet cer- banking system and permits any bank to change tain criteria—such as large size and payment and federal regulator by changing charter, thus ensurforeign activity—would be retained by the Fed- ing a set of checks and balances on the arbitrarieral Reserve even if the lead bank of the organi- ness of a single regulator. It maintains the healthy zation had a national charter. process of dynamic tension in bank rulemaking. It Under either option, the number of banking maintains the practical knowledge and skill, and organizations subject to multiple regulators would the influence and authority, of the central bank, so drop sharply. critical for crisis prevention, crisis management, Whichever holding company option is se- and monetary policy. It maintains the valuable lected, the general proposal would have the perspective the central bank brings to supervi- Federal Reserve supervise and regulate state sion. In short, the proposal would avoid an inflexnonmembers, with these banks being a signifi- ible, single regulator, preserve the dual banking cant addition to our existing regulatory load. This system, ensure that an economic perspective is expansion of the Federal Reserve's supervisory brought to supervision and regulation, and mainfunctions rests solely on the notion that in a tain a strong central bank. • Statement by John P. LaWare, Member, Board GROWTH OF MUTUAL FUNDS of Governors of the Federal Reserve System, before the Subcommittee on Financial Institu- Before describing the actions the Board has tions Supervision, Regulation and Deposit Insur- taken, I would like to make some observations ance of the Committee on Banking, Finance and about the recent growth in the mutual fund Urban Affairs, U.S. House of Representatives, industry. Growth in mutual fund assets in recent March 8, 1994 years has been nothing short of explosive. Last year, the public bought a record $294 billion of I am pleased to appear before the Financial shares of mutual funds, nearly all of which was in Institutions Subcommittee today on behalf of the stock and bond funds, bringing assets under Federal Reserve Board to describe the actions management in the mutual fund industry to the Board has taken to regulate bank sales of slightly more than $2.0 trillion at year-end. As a mutual funds and to present the Board's views on consequence, mutual fund assets have surpassed what additional regulatory or congressional ac- the life insurance industry in size and, today, are tion is necessary. exceeded only by commercial banks and pension Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 Federal Reserve Bulletin • May 1994 funds. The strong inflows into mutual funds issued either in connection with the authorizareflect their popularity among households. It is tion of additional activities for bank holding estimated that nearly a fifth of all households companies or when the Board and its examiners own shares in at least one mutual fund. have concluded that regulatory guidelines are As mutual funds have become a significant necessary to address the manner in which an competitor to depository institutions, these insti- activity is being conducted. All of these statetutions have increased their participation in the ments reflect the Board's long-standing policy mutual fund industry. The net assets of bank that when banks sell uninsured investment proprietary mutual funds are estimated to have products to their customers they should do so in increased from $44 billion at the end of 1988 to a manner that clearly distinguishes these prod- $220 billion at the end of 1993. Between 1988 and ucts from insured deposits. 1993, the market share of bank proprietary funds The first regulatory action that the Board took doubled from 5V2 percent to more than 10 percent concerning mutual funds was a 1972 interpretive of the total assets of the mutual fund industry. rule relating to conflicts that may arise when a The potential for customer confusion clearly bank holding company acts as an investment exists when mutual funds are sold to the public adviser to mutual funds. This rule authorized by depository institutions, given their traditional bank holding companies to act as investment insured deposit activities. The chief concern is advisers to mutual funds and, at the same time, that depositors may not understand that the created safeguards designed to assure a separamutual fund investments they buy from a depos- tion between the mutual fund being advised and itory institution are not deposits and are not the holding company's subsidiary banks. covered by Federal Deposit Insurance Corpora- During the mid-eighties, as bank holding comtion (FDIC) insurance. It is also possible that panies and banks received authorization to endepository institution customers who buy mutual gage in discount and full service brokerage, the funds may receive less than adequate investment Board and its staff members, through orders, advice about mutual funds if sales personnel are opinion letters, and informal staff interpretations, not properly trained or their sales practices are adopted disclosure requirements that are applinot properly supervised. cable when these powers are used by banks and This potential for customer confusion involv- bank holding companies to sell mutual funds. ing mutual fund sales could adversely affect the Pursuant to these requirements, bank holding safety and soundness of a depository institution. companies and banks are required to inform a If depositors suffer losses on investments they customer that investments in a fund's shares are have purchased from a depository institution, the not obligations of a bank and are not insured by institution's reputation, and possibly its financial the FDIC. More recently, the Board revised its condition, could be adversely affected. More 1972 rule regarding investment advisory activispecifically, litigation risk and possible deposit ties of bank holding companies to require that withdrawals could affect a bank unfavorably. banks that sell or provide investment advice about mutual funds that are advised by an affiliate must disclose to customers the relationship BOARD ACTIONS REGARDING between the affiliate and the fund. INVOLVEMENT BY BANKING ORGANIZATIONS WITH MUTUAL FUNDS The Board takes these concerns seriously. Over INTERAGENCY GUIDELINES the years, the Board and its staff members have issued several interpretive opinions, supervi- In response to the rapidly growing involvement sory letters, and informal staff opinions ad- of depository institutions in the sales of mutual dressing issues relating to bank sales of unin- funds, the Board and the other bank regulatory sured investment products, including mutual agencies last month jointly issued a comprehenfunds. Many of these statements have been sive set of guidelines governing the retail sale of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 387 mutual funds and other nondeposit investment The agencies also provide for a disclosure products by depository institutions. concerning the Securities Investor Protection I would like today to focus on those aspects of Corporation (SIPC) and other forms of insurance the statement that are intended to directly ad- when mutual funds are sold by broker-dealers on dress the question of potential customer confu- bank premises. The interagency guidelines spesion regarding the uninsured status of mutual cifically state that if sales activities include any funds and similar investment products, their non- written or oral representations concerning insurdeposit character, and the risks inherent in in- ance coverage provided by the SIPC or any other vesting in such products. Ensuring that custom- insurance fund or company, then a clear and ers are not confused about the products they are accurate explanation of the coverage must be purchasing is not simply a matter of providing provided. There should not be any suggestion or accurate disclosure. Experience has demon- implication that an alternative form of insurance strated that the "manner" in which products are coverage is the same or similar to FDIC insursold—the location of the sales, the experience ance of bank deposits. and training of the personnel selling the products, The interagency guidelines also provide that and the conduct of sales programs—all contrib- advertisements and other promotional and sales ute to the customer's understanding of the nature materials conspicuously include at least the minand risk associated with their investments. imum disclosures and must not suggest or convey a misleading impression about the nature of the investment product or its lack of FDIC Disclosure insurance. The minimum disclosures should also be emphasized in telemarketing contacts. Writ- In developing the interagency guidelines, one of ten materials that contain information about both the goals of the agencies was to standardize the FDIC-insured deposits and nondeposit investbasic disclosures that banks provide customers ment products should clearly segregate the two about mutual funds and other uninsured invest- types of information. ment products. The disclosures provided for by the interagency statement must, at the very min- Location of Sales imum, indicate that the product is not insured by the FDIC, is not a deposit or other obligation of, To further minimize the potential for customer or guaranteed by, the selling depository institu- confusion, the interagency guidelines provide tion, and is subject to investment risks, including that, except in very limited situations when physpossible loss of the principal amount invested. ical considerations prevent it, sales or recom- These disclosures should be provided orally dur- mendations relating to nondeposit investment ing any sales presentations or when investment products should be conducted in a physical locaadvice is given and both orally and in writing tion distinct from the area where retail deposits before or at the time an investment account is are taken. opened; moreover, they must be contained in all advertisements and other promotional materials. Personnel When the disclosures are provided in writing, they should be conspicuous and presented in a Another element that must be considered in clear and concise manner. A depository institu- minimizing the potential for customer confusion tion should also disclose the existence of any relates to the personnel who provide advice advisory or other material relationship between about, or sell, mutual funds or other nondeposit the institution, or an affiliate of the institution, investment products. The interagency guidelines and a mutual fund whose shares are sold by the provide that tellers and other employees should institution. Any other material relationship be- not make general or specific investment recomtween the institution and an affiliate involved in mendations or accept orders for nondeposit inproviding the investment products should also be vestment products, even if unsolicited, while disclosed. located in the routine deposit-taking area. Tellers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 Federal Reserve Bulletin • May 1994 and other employees who are not authorized to any of its employees do not follow the guidelines, sell nondeposit investment products may only the regulators have ample authority to address refer customers to individuals who are specifi- any unsafe and unsound practices regarding the cally trained to sell nondeposit investment prod- sale of mutual funds by depository institutions ucts. and to sanction misconduct when appropriate. The interagency guidelines provide that depos- The Federal Reserve is also augmenting its itory institution personnel who sell, or provide current examination procedures regarding sales investment advice about, nondeposit investment of mutual funds by state member banks or affilproducts should receive training that is the sub- iated broker-dealers to ensure that the guidance stantive equivalent of the type of training re- contained in the recent interagency statement is quired for brokers licensed by the National As- being heeded. Sales of mutual funds by state sociation of Securities Dealers (NASD). In member banks traditionally have been superaddition, a depository institution should provide vised and examined by the Federal Reserve in training to its employees who may have direct the same manner as sales of other securities and contact with customers to ensure a basic under- nondeposit, uninsured financial instruments. Bestanding of the institution's sales activities and fore the adoption of the interagency statement, the limits on their involvement in selling such the Board in June 1993 issued specific supervinondeposit investment products. sory guidance for examiner use concerning the proper disclosure and separation of mutual fund Suitability sales from deposit-taking activities on bank premises. Over the years, the Federal Reserve The guidelines also provide that depository insti- has developed product-specific examination protution personnel who recommend nondeposit in- cedures to ensure that these activities are carried vestment products should have reasonable out in a safe and sound manner. Further, the grounds for believing that a specific product is procedures are intended to address the Board's suitable for the particular customer on the basis commitment to adequate disclosure of the uninof information disclosed by the customer. Per- sured nature of these retail investment products. sonnel should make reasonable efforts to obtain Federal Reserve examiners have been reviewing information directly from the customer regard- on a regular basis the sales practices associated ing, at a minimum, the customer's financial and with uninsured, nondeposit investment instrutax status, investment objectives, and other in- ments for compliance with our policies. formation that may be useful in making an invest- Before the issuance of the interagency statement recommendation. Personnel who are autho- ment, the Board assembled an interdistrict task rized to sell nondeposit investment products may force composed of senior examiners who have receive incentive compensation for transactions experience supervising and examining brokerage entered into by customers; however, incentive affiliates of banks and bank holding companies. compensation programs should not be structured That task force has been revising and expanding in such a way as to result in unsuitable recom- the Board's existing securities examination promendations. cedures to specifically incorporate the interagency statement. Currently, the task force is field testing and refining the expanded procedures at BOARD SUPERVISION OF MUTUAL FUND an examination of a large regional bank holding ACTIVITIES company and its securities affiliate that is actively involved in sales of mutual funds on the With regard to possible congressional action re- subsidiary banks' premises. Upon completion of garding mutual fund activities by banking orga- the examination within the next several weeks, nizations, the fact that the substantive provisions the task force will assemble in Washington, of H.R.3306 are essentially mirrored in the agen- D.C., to finalize the revised mutual fund examicies' guidelines reduces the need for legislative nation procedures, and they will be implemented immediately thereafter. action at this time. If a depository institution or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 389 To avoid unnecessary regulatory burden on by the Federal Reserve Banks around the counbanks and affiliated broker-dealers, and in rec- try to specifically address consumer issues reognition of the expertise developed by the secu- lated to mutual funds. rities self-regulatory organizations, the Board initiated discussions with the NASD pertaining to its examinations of bank affiliated brokerdealers. The NASD examines bank affiliated CONCLUSION broker-dealers for compliance with its rules regarding sales practices, recordkeeping, and other The issues raised by this hearing today are of applicable customer protection requirements. extreme importance both to consumers who are Based on an informal survey of our Reserve faced with increasingly complex choices about Banks, we understand that about 85 percent of investments and savings and to banks that must those state member banks that sell mutual funds address their customers' need for access to a do so through a registered broker-dealer selling variety of investment and savings vehicles. Savon bank premises. About half of these registered ing for a college education or for retirement is no broker-dealers are bank affiliated. All registered longer as simple as depositing a set amount in a broker-dealers are subject to SEC oversight and bank account each week. We believe that banks to the additional requirements and rules adopted are in a unique position to help consumers unby their self-regulatory organizations. derstand the choices before them. But banks Our discussions with the NASD have focused must recognize and affirmatively address the on cooperative efforts to minimize unnecessary potential for customer confusion and the need to duplication of examination efforts. These initia- provide consumers with complete and accurate tives include examiner support and possible in- information. We intend to take all actions within formation sharing regarding bank affiliated bro- our power to ensure that the depository instituker-dealers. In this regard, an NASD examiner tions subject to the Board's jurisdiction do so. went on site with our examiner task force in field Selling mutual funds and other investment prodtesting our mutual fund examination procedures. ucts in a manner that is not misleading and that provides customers with accurate and complete Aside from new examination initiatives, the information is an important element of safe and Board is considering expanding the scope of the sound banking that we intend to enforce. • consumer education seminars now being offered Statement by John P. LaWare, Member, Board arena will help facilitate the lending process for of Governors of the Federal Reserve System, creditworthy small businesses. before the Committee on Small Business of the I will begin my remarks this morning by re- U.S. House of Representatives, March 17, 1994 viewing some of the key initiatives that have been taken in the past year and their status, then follow with a look at recent financing trends and I am pleased to be here this morning to discuss the need for additional initiatives. regulatory and other initiatives designed to stim- You also asked for my views on the adequacy ulate bank lending, especially to small busi- of bank Call Report data on small business nesses, and to comment on recent trends in lending; I will comment on the Call Report data business lending activity. A review of these at the end of my statement and also bring to your issues seems quite appropriate at this time. In attention the survey of small business finances recent months, the economy has displayed in- that the Federal Reserve currently has under creasing evidence of underlying strength, accom- way. We believe the survey, which is being panied by rising demands for credit by house- cosponsored by the Small Business Administraholds and businesses. As these trends continue, tion, will provide important information for aswe believe that initiatives taken in the regulatory sessing credit availability for small businesses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 Federal Reserve Bulletin • May 1994 RECENT SUPERVISORY POLICY INITIATIVES tended to encourage loans to smaller businesses that banks believe to be creditworthy based, for Last spring, the Administration, the Federal Re- example, on the borrower's past credit experiserve, and the other federal banking agencies ence or the bank's general knowledge of the ("agencies") announced a series of initiatives to customer but for which strict adherence to tradireduce regulatory impediments to the availability tional documentation standards and procedures of credit to small- and medium-sized businesses might make the loan too costly. and farms, other businesses, and individuals. The agencies also have issued numerous state- These initiatives were a continuation of ongoing ments in the past year with the intent of clarifying interagency efforts to ensure that examiners eval- supervisory policies and reporting requirements. uate bank lending activities in a consistent, pru- These statements deal with a variety of issues dent, and balanced manner. related to the treatment of troubled real estate One of the most important initiatives involves loans, sales of foreclosed properties, restoration a proposal to revise the agencies' requirements of problem loans to performing status, and the for real estate appraisal by certified or licensed interagency framework for assessing loan qualappraisers in ways that would reduce costs to ity. banks and their customers. Such appraisals, In designing each of these initiatives, the agenwhich relate to a requirement of Title XI of the cies have sought to remove impediments to bank Financial Institutions Reform, Recovery and En- lending that might occur owing to unnecessary forcement Act of 1989, would be required less costs and supervisory burdens. Thus, as the often under these revised rules. To implement economy develops momentum and as underlying this initiative, rules were issued for comment last demands for credit pick up, these actions will year and approved by the Board on March 9. help ensure that credit decisions of lenders and These rules do three things: (1) They increase the borrowers are not unduly discouraged by costly threshold amount for which such appraisals are appraisal and documentation procedures or by a required from $100,000 to $250,000; (2) they misunderstanding of examination policies. expand the "abundance of caution" exemption for business loans so that an appraisal would not be required when the value of real estate taken to TRENDS IN BUSINESS FINANCING collateralize a loan is not material to the decision ACTIVITY to make the loan; and (3) they exempt from appraisals business loans of less than $1 million Ultimately, however, the major determinant of when the principal source of repayment is not the business credit use and availability is not regulasale of, or income from, the real estate held as tions or supervisory policies but underlying ecocollateral. nomic and financial forces. In this regard, we are Loans secured by real estate are an important beginning to see evidence that business lending, source of credit for many small and midsize including small business lending, has picked up. businesses. Thus, eliminating the requirement to Indeed, in recent quarters, incoming data on the obtain an appraisal in the cases just specified economy and credit flows have revealed appreshould work to their clear advantage by reducing ciable underlying strength. Let me briefly review costs. At the same time, such exemptions will some recent trends that are setting the stage for not erode the safety and soundness of the lending bank credit growth this year. institutions. Through much of 1993, overall business de- Other actions taken by the agencies to facili- mands for credit remained quite weak. In the tate small business lending include a new policy aggregate, nonfinancial businesses largely used that permits qualified banks to set aside a portion internal funds to finance growing outlays for of their small business loan portfolios. The se- fixed capital and inventories and continued to lected loans will be evaluated by examiners only focus efforts heavily on balance sheet restructuron the basis of their performance and not on the ing. When external financing was needed, it was level of loan documentation. This change is in- concentrated in capital markets, spurred by con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 391 tinuing declines in bond rates and a strong stock there is a strong positive correlation. Thus, we market. Many firms used proceeds from new feel comfortable in assuming that most of the security offerings to pay down bank loans. Such small loans reported by banks are to small busipaydowns were an important factor contributing nesses. to the continued weakness in total business loans More than 6,000 banks indicated on the June at banks last year. Call Report that "virtually all" of their loans to The favorable interest rate environment and businesses were less than $100,000 in size. We the restructuring activity of firms have produced singled out these banks to see what had hapa much healthier business sector. Debt service pened to their lending last year. We found that, burdens have fallen markedly. Equity cushions while aggregate business loans were running off seem to have moved to more comfortable levels. last year, this subset of banks maintained and Indicators of financial stress, including loan de- increased their lending to small customers. fault rates and bankruptcy filings, have dropped More generally, in the first two months of this well down from peaks of recent years. Banks year, growth of business loans at all domestic also have charted marked improvements. Equity banks has strengthened. Total commercial and capital, buoyed by record earnings, climbed to industrial loans increased at an average annual nearly 8 percent of assets last year, and the share rate of 7.5 percent in January and February. In of troubled assets on the books of banks dropped the latest survey of bank lending officers, responto its lowest level since 1986. dents indicated that the demand for loans by As banks have become more assured of their businesses has firmed, largely reflecting inown financial health and that of their customers, creased needs to finance inventories and investtheir willingness to lend has grown. We observed ment in plant and equipment. on Federal Reserve surveys last year a consistent These signs of a greater willingness to borrow easing of terms and standards on business and and spend on the part of businesses are quite consumer loans as the year progressed—a trend encouraging. Moreover, banks, which are better that has continued in the new year. The easing capitalized and more liquid than they have been appears to have been more substantial for large in a long while, appear to be able and willing to firms, but respondents also have eased standards meet the rising credit demands. I believe that in for small firms. The reporting banks attributed this environment, the recent initiatives taken in this easing to the improved economic outlook the supervisory area will help to facilitate new and their own strong capital positions. lending, particularly to smaller borrowers. Moreover, although growth of total business loans was held down last year by restructuring activity of big firms, we began to see signs of a NEED FOR ADDITIONAL INITIATIVES? pickup in lending to small firms. The new Call Report data on small business loans provide You asked my opinion about the need for addisome evidence of this. I have included in my tional initiatives. In this regard, I view the steps testimony a set of tables derived from the new that have recently been taken as an ongoing part Call Reports. These tables show the breakdown of the supervisory process. This process is never of outstanding loans, by size of loan and by size complete. Regulators always have to remain vigof bank, for different categories of business and ilant to possibilities for reducing burdens and farm loans.1 Although the relationship between making the supervisory process more efficient. the size of the credit arrangement that a bank has We must guard against implementing new poliwith a business customer and the size of the cies that might unnecessarily impede the lending customer's assets or sales is not precise, our process. We also must be aware of special situsurveys and examiner experience suggest that ations, such as those resulting from the California earthquake, when there may be a need to ease standards temporarily. 1. The attachment to this statement is available from And, while supervision alone can play only a Publications Services, Board of Governors of the Federal Reserve System, Washington, DC 20551. limited role in spurring aggregate lending, there is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 Federal Reserve Bulletin • May 1994 scope for the Congress and the agencies to work reporting institutions nor would it be appropriate together to foster an environment for banks that for all analytical purposes. Moreover, Call Rewill allow them to make sound loans and to port data, whether by size of loan or borrower, compete efficiently in financial markets. Impor- will not yield a comprehensive enough view to tant in this regard are the initiatives now before evaluate the adequacy and risks of small business the Congress related to interstate banking and financing. For example, we would need informabroader powers for banks. tion on items such as the following: price and nonprice terms of business loans; personal or credit card loans that are used for business ADEQUACY OF CALL REPORT DATA ON purposes; risk characteristics of the borrower SMALL BUSINESSES AND FARMS and the firm's access to capital; and the cost and availability of credit from nonbank sources. Let me conclude by commenting on the ade- The Federal Reserve knows that banks play an quacy of data for assessing credit availability to important role in supplying credit and other small businesses. In particular, you have asked financial services to small businesses, and we about the new data we now collect on the Call have a strong commitment to better understand- Reports. The new Call Report data are a good, ing how the financing needs of these businesses albeit not perfect, measure of bank lending to are being met. For this reason, we are now small businesses. We believe that their useful- undertaking an extensive survey of 6,000 small ness as an indicator of trends in bank credit flows businesses, including 1,200 minority-owned to small borrowers will increase each year as we small businesses. The survey will gather inforcollect more observations and that the data will mation on characteristics of the business firms be a valuable supplement to information we and their owners, on their income flows and gather from other sources. balance sheets, on their use of financial services Our experience with the data reported for the and credit sources, and on their recent borrowing first time in June revealed, as might be expected, experiences. The information we hope to gain a number of reporting problems that needed to be from this survey would be impossible to collect resolved. Consequently, the staff members of the on the Call Report. relevant agencies have made a number of changes to the reporting instructions designed to clarify definitions and improve the quality of the reported statistics. The agencies, however, did SUMMARY REMARKS not see the need to add items to the report or to collect information by size of borrower instead of Finally, let me summarize my remarks this mornsize of loan, for several reasons. ing by saying that the Federal Reserve recog- It would be extremely costly for most banks to nizes the highly important role that small busiprovide loan data by size of "business" because ness firms play in the economy and the need to their records—especially automated records—do promote the flow of credit to these firms. We not group loans in this way. We recognized that intend to continue to seek ways, consistent with any particular definition of small business that we safety and soundness standards, to achieve this selected might not be easily available to all objective. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

393 Announcements ACTION TAKEN BY THE files. The Secretariat has lightly edited the original FEDERAL OPEN MARKET COMMITTEE to facilitate the reader's understanding without changing the substance. When one or more words Chairman Alan Greenspan announced on were missing or garbled in the transcription, the March 22, 1994, that the Federal Open Market notation "unintelligible" has been inserted. In Committee had decided to increase slightly the some instances, words have been added in brackets degree of pressure on reserve positions. This action to complete a speaker's thought or to correct an was expected to be associated with a small increase obvious transcription error or misstatement. in short-term money market interest rates. The FOMC last year decided to make transcripts of its meetings available to the public with a fiveyear lag. Transcripts of meetings for the years 1976 through the first half of 1988 will be made avail- RETIREMENT OF SILAS KEEHN AS able as soon as editing is completed on the individ- PRESIDENT OF THE FEDERAL RESERVE ual transcripts. BANK OF CHICAGO The only deletions in the transcripts involve a very small amount of confidential information per- Chairman Alan Greenspan of the Federal Reserve taining to individual foreign central banks, busi- Board on March 28, 1994, made the following nesses, and persons that are identified or identifistatement on the planned retirement this summer of able. Deleted passages are indicated by gaps in the Silas Keehn as President of the Federal Reserve text. Bank of Chicago: Decisions of FOMC meetings held through 1993 have already been made public through the publica- President Keehn has done a splendid job during his tion of minutes or of a record of policy actions. thirteen years as President of the Federal Reserve Bank of Chicago. His counsel will be missed not only at the Transcripts made available may be obtained Chicago Bank but also in the Federal Open Market from the Board's Freedom of Information Office. Committee where he provided wise insights to policy. We wish him a long and fruitful retirement. APPOINTMENT OF NEW MEMBER TO THE AVAILABILITY OF TRANSCRIPTS OF THE CONSUMER ADVISORY COUNCIL FEDERAL OPEN MARKET COMMITTEE The Federal Reserve Board announced on March 9, The Federal Reserve on March 9, 1994, made 1994, the appointment to its Consumer Advisory available for public inspection the transcripts of Council of John E. Taylor, President and CEO of four meetings and two telephone conference calls the National Community Reinvestment Coalition. of the Federal Open Market Committee (FOMC) He will replace Bonnie Guiton, the Dean of the held during the last half of 1988. Mclntire School of Commerce at the University of These transcripts cover meetings held in August, Virginia, who recently resigned from the council. September, November, and December 1988 and Mr. Taylor will serve a three-year term ending on telephone conference calls held in October and December 31, 1996. November of the same year. The council advises the Board on the exercise of These transcripts have been produced from the its duties under the Consumer Credit Protection original raw transcripts in the FOMC Secretariat's Act and on other consumer-related matters. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 Federal Reserve Bulletin • May 1994 ESTABLISHMENT OF TEMPORARY SWAP request to Publications Services, Mail Stop 127, FACILITY WITH MEXICO Board of Governors of the Federal Reserve System, Washington, DC 20551. A separately printed Treasury Secretary Lloyd Bentsen and Federal companion document, entitled Annual Report: Reserve Chairman Alan Greenspan confirmed on Budget Review, 1993-94, describes the budgeted March 24, 1994, continued strong U.S. support for expenses of the Federal Reserve System for 1994 Mexico's economic policies. and compares them with expenses for 1992 They announced the establishment of a tempo- and 1993; it is also available from Publications rary $6 billion swap facility with Mexico. The Services. Treasury Department's Exchange Stabilization Fund and the Federal Reserve System are each providing half of the facility. PROPOSED ACTION The Federal Reserve Board on March 11, 1994, ANNUAL REPORT: PUBLICATION requested public comment on proposed amendments to Regulation Y (Bank Holding Companies The 80th Annual Report, 1993, of the Board of and Change in Bank Control) regarding discounts Governors of the Federal Reserve System, cover- on certain products and services for customers obing operations for the calendar year 1993, is avail- taining traditional banking products from affiliates. able for distribution. Copies may be obtained on Comments were requested by April 14, 1994. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

395 Minutes of the Federal Open Market Committee Meeting on February 3-4,1994 A meeting of the Federal Open Market Committee Mr. Ettin, Deputy Director, Division of Research was held in the offices of the Board of Governors and Statistics, Board of Governors Mr. Slifman, Associate Director, Division of Research of the Federal Reserve System in Washington, and Statistics, Board of Governors D.C., on Thursday, February 3, 1994, at 2:30 p.m. Mr. Madigan, Associate Director, Division of and was continued on Friday, February 4, 1994, at Monetary Affairs, Board of Governors 9:00 a.m. Mr. Hooper, Assistant Director, Division of International Finance, Board of Governors1 Present: Mr. Reinhart, Section Chief, Division of Monetary Mr. Greenspan, Chairman Affairs, Board of Governors2 Mr. McDonough, Vice Chairman Mr. Rosine, Senior Economist, Division of Research Mr. Broaddus and Statistics, Board of Governors 2 Mr. Forrestal Ms. Low, Open Market Secretariat Assistant, Mr. Jordan Division of Monetary Affairs, Board of Mr. Kelley Governors Mr. La Ware Mr. Lindsey Messrs. T. Davis, Dewald, Lang, Rolnick, Rosenblum, Mr. Parry and Scheld, Senior Vice Presidents, Federal Ms. Phillips Reserve Banks of Kansas City, St. Louis, Philadelphia, Minneapolis, Dallas, and Chicago Messrs. Hoenig, Keehn, Melzer, Oltman,1 and respectively Syron, Alternate Members of the Federal Open Market Committee Mr. McNees, Vice President, Federal Reserve Bank of Boston Messrs. Boehne, McTeer, and Stern, Presidents of the Ms. Krieger, Assistant Vice President, Federal Reserve Federal Reserve Banks of Philadelphia, Dallas, Bank of New York and Minneapolis respectively In the agenda for this meeting, it was reported Mr. Kohn, Secretary and Economist that advices of the election of the following mem- Mr. Bernard, Deputy Secretary bers and alternate members of the Federal Open Mr. Coyne, Assistant Secretary Market Committee for the period commencing Jan- Mr. Gillum, Assistant Secretary Mr. Mattingly, General Counsel uary 1, 1994, and ending December 31, 1994, had Mr. Prell, Economist been received and that the named individuals had Mr. Truman, Economist executed their oaths of office. The elected members and alternate members Messrs. Beebe, J. Davis, R. Davis, Goodfriend, were as follows: Lindsey, Promisel, Siegman, Simpson, Stockton, and Ms. Tschinkel, Associate Economists William J. McDonough, President of the Federal Reserve Ms. Lovett, Manager for Domestic Operations, Bank of New York, with James H. Oltman, First System Open Market Account Vice President of the Federal Reserve Bank of New Mr. Fisher, Manager for Foreign Operations, York, as alternate; System Open Market Account 2. Attended portion of meeting relating to the Committee's discussion of the economic outlook and its longer-run objectives 1. Attended the Thursday session only. for monetary and debt aggregates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 Federal Reserve Bulletin • May 1994 J. Alfred Broaddus, Jr., President of the Federal Reserve understanding that their selection was subject to Bank of Richmond, with Richard F. Syron, Presi- their being satisfactory to the Federal Reserve Bank dent of the Federal Reserve Bank of Boston, as of New York. alternate; Jerry L. Jordan, President of the Federal Reserve Bank of Cleveland, with Silas Keehn, President of the Secretary's note: Advice subsequently was received Federal Reserve Bank of Chicago, as alternate; that the selections indicated above were satisfactory to Robert P. Forrestal, President of the Federal Reserve the board of directors of the Federal Reserve Bank of Bank of Atlanta, with Thomas C. Melzer, President New York. of the Federal Reserve Bank of St. Louis, as alternate; On January 24, 1994, the continuing rules, regu- Robert T. Parry, President of the Federal Reserve Bank lations, authorizations, and other instruments of the of San Francisco, with Thomas M. Hoenig, Presi- Committee had been distributed with the advice dent of the Federal Reserve Bank of Kansas City, as alternate. that, in accordance with procedures approved by the Committee, they were being called to the Com- By unanimous vote, the following officers of the mittee's attention before the February 3-4 organiza- Federal Open Market Committee were elected to tion meeting to give members an opportunity to serve until the election of their successors at the raise any questions they might have concerning first meeting of the Committee after December 31, them. Members were asked to indicate if they 1994, with the understanding that in the event of wished to have any of the instruments in question the discontinuance of their official connection with placed on the agenda for consideration at this meetthe Board of Governors or with a Federal Reserve ing, and no requests for substantive consideration Bank, they would cease to have any official connec- were received. tion with the Federal Open Market Committee: At this meeting, the members agreed to update the references to the Management of the System Alan Greenspan Chairman Open Market Account in the following FOMC William J. McDonough Vice Chairman documents to reflect the new titles of Manager for Domestic Operations, System Open Market Donald L. Kohn Secretary and Economist Account, and Manager for Foreign Operations, Normand R. V. Bernard Deputy Secretary Joseph R. Coyne Assistant Secretary System Open Market Account: (1) FOMC Rules of Gary P. Gillum Assistant Secretary Organization, (2) Procedures for Allocation of Se- J. Virgil Mattingly, Jr. General Counsel curities in the System Open Market Account, and Ernest T. Patrikis Deputy General Counsel (3) Program for Security of FOMC Information. Michael J. Prell Economist Except for this change, all of the instruments iden- Edwin M. Truman Economist tified below remained in effect in their existing Jack H. Beebe, John M. Davis, Richard G. Davis, forms: Marvin S. Goodfriend, David E. Lindsey, Larry J. Promisel, Charles J. Siegman, 1. Procedures for Allocation of Securities in the Sys- Thomas D. Simpson, David J. Stockton, and tem Open Market Account. Sheila L. Tschinkel, Associate Economists 2. Authority for the Chairman to appoint a Federal Reserve Bank as agent to operate the System Account in By unanimous vote, the Federal Reserve Bank of case the New York Bank is unable to function. New York was selected to execute transactions 3. Resolution to Provide for the Continued Operation for the System Open Market Account until the of the Federal Open Market Committee During an Emergency. adjournment of the first meeting of the Committee 4. Resolution Authorizing Certain Actions by Federal after December 31, 1994. Reserve Banks During an Emergency. By unanimous vote, Joan E. Lovett and Peter R. 5. Resolution Relating to Examinations of the System Fisher were selected to serve at the pleasure of Open Market Account. the Committee in the capacities of Manager for 6. Guidelines for the Conduct of System Operations in Federal Agency Issues. Domestic Operations, System Open Market 7. Regulation Relating to Open Market Operations of Account, and Manager for Foreign Operations, Federal Reserve Banks. System Open Market Account, respectively on the 8. Program for Security of FOMC Information. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 397 9. Federal Open Market Committee Rules of Organi- acceptances held at any one time shall not exceed zation, Rules of Procedure, and Rules Regarding Avail- $100 million; ability of Information. (c) To buy U.S. Government securities, obligations that are direct obligations of, or fully guaranteed as to By unanimous vote, the Authorization for principal and interest by, any agency of the United Domestic Open Market Operations shown below States, and prime bankers acceptances of the types authorized for purchase under 1(b) above, from dealers was reaffirmed. for the account of the Federal Reserve Bank of New York under agreements for repurchase of such securities, obligations, or acceptances in 15 calendar days or less, at rates that, unless otherwise expressly authorized by the Committee, shall be determined by competitive bidding, AUTHORIZATION FOR DOMESTIC OPEN after applying reasonable limitations on the volume of MARKET OPERATIONS agreements with individual dealers; provided that in the event Government securities or agency issues covered by any such agreement are not repurchased by the dealer Reaffirmed February 3, 1994 pursuant to the agreement or a renewal thereof, they shall be sold in the market or transferred to the System 1. The Federal Open Market Committee authorizes Open Market Account; and provided further that in the and directs the Federal Reserve Bank of New York, to event bankers acceptances covered by any such agreethe extent necessary to carry out the most recent ment are not repurchased by the seller, they shall condomestic policy directive adopted at a meeting of the tinue to be held by the Federal Reserve Bank or shall be Committee: sold in the open market. (a) To buy or sell U.S. Government securities, in- 2. In order to ensure the effective conduct of open cluding securities of the Federal Financing Bank, and market operations, the Federal Open Market Committee securities that are direct obligations of, or fully guaran- authorizes and directs the Federal Reserve Banks to lend teed as to principal and interest by, any agency of the U.S. Government securities held in the System Open United States in the open market, from or to securities Market Account to Government securities dealers and to dealers and foreign and international accounts main- banks participating in Government securities clearing tained at the Federal Reserve Bank of New York, on a arrangements conducted through a Federal Reserve cash, regular, or deferred delivery basis, for the System Bank, under such instructions as the Committee may Open Market Account at market prices, and, for such specify from time to time. Account, to exchange maturing U.S. Government and 3. In order to ensure the effective conduct of open Federal agency securities with the Treasury or the indi- market operations, while assisting in the provision of vidual agencies or to allow them to mature without short-term investments for foreign and international replacement; provided that the aggregate amount of U.S. accounts maintained at the Federal Reserve Bank of Government and Federal agency securities held in such New York, the Federal Open Market Committee autho- Account (including forward commitments) at the close rizes and directs the Federal Reserve Bank of New York of business on the day of a meeting of the Committee at (a) for System Open Market Account, to sell U.S. Govwhich action is taken with respect to a domestic policy ernment securities to such foreign and international directive shall not be increased or decreased by more accounts on the bases set forth in paragraph 1(a) under than $8.0 billion during the period commencing with the agreements providing for the resale by such accounts of opening of business on the day following such meeting those securities within 15 calendar days on terms compaand ending with the close of business on the day of the rable to those available on such transactions in the next such meeting; market; and (b) for New York Bank account, when (b) When appropriate, to buy or sell in the open appropriate, to undertake with dealers, subject to the market, from or to acceptance dealers and foreign conditions imposed on purchases and sales of securities accounts maintained at the Federal Reserve Bank of in paragraph 1(c), repurchase agreements in U.S. Govern- New York, on a cash, regular, or deferred delivery basis, ment and agency securities, and to arrange correspondfor the account of the Federal Reserve Bank of New ing sale and repurchase agreements between its own York at market discount rates, prime bankers accep- account and foreign and international accounts maintances with maturities of up to nine months at the time of tained at the Bank. Transactions undertaken with such acceptance that (1) arise out of the current shipment of accounts under the provisions of this paragraph may goods between countries or within the United States, or provide for a service fee when appropriate. (2) arise out of the storage within the United States of goods under contract of sale or expected to move into By unanimous vote, the Authorization for Forthe channels of trade within a reasonable time and that are secured throughout their life by a warehouse receipt eign Currency Operations was amended to reflect or similar document conveying title to the underlying the new title of Manager for Foreign Operations, goods; provided that the aggregate amount of bankers System Open Market Account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 Federal Reserve Bulletin • May 1994 AUTHORIZATION FOR FOREIGN CURRENCY Banks and Bankers, and with the approval of the Com- OPERATIONS mittee to renew such arrangements on maturity: Amended February 3, 1994 Amount of arrangement Foreign bank (millions of 1. The Federal Open Market Committee authorizes dollars and directs the Federal Reserve Bank of New York, for equivalent) System Open Market Account, to the extent necessary to carry out the Committee's foreign currency directive and Austrian National Bank 250 express authorizations by the Committee pursuant National Bank of Belgium 1,000 thereto, and in conformity with such procedural instruc- Bank of Canada 2,000 tions as the Committee may issue from time to time: National Bank of Denmark 250 A. To purchase and sell the following foreign cur- Bank of England 3,000 Bank of France 2,000 rencies in the form of cable transfers through spot or German Federal Bank 6,000 forward transactions on the open market at home and Bank of Italy 3,000 abroad, including transactions with the U.S. Treasury, Bank of Japan 5,000 with the U.S. Exchange Stabilization Fund established Bank of Mexico 700 by Section 10 of the Gold Reserve Act of 1934, with Netherlands Bank 500 foreign monetary authorities, with the Bank for Interna- Bank of Norway 250 tional Settlements, and with other international financial Bank of Sweden 300 institutions: Swiss National Bank 4,000 Bank for International Settlements: Austrian schillings Italian lire Dollars against Swiss francs 600 Belgian francs Japanese yen Dollars against authorized European Canadian dollars Mexican pesos currencies other than Swiss francs 1,250 Danish kroner Netherlands guilders Pounds sterling Norwegian kroner French francs Swedish kronor Any changes in the terms of existing swap arrange- German marks Swiss francs ments, and the proposed terms of any new arrangements that may be authorized, shall be referred for review and B. To hold balances of, and to have outstanding approval to the Committee. forward contracts to receive or to deliver, the foreign 3. All transactions in foreign currencies undertaken currencies listed in paragraph A above. under paragraph l.A. above shall, unless otherwise C. To draw foreign currencies and to permit for- expressly authorized by the Committee, be at prevailing eign banks to draw dollars under the reciprocal currency market rates. For the purpose of providing an investment arrangements listed in paragraph 2 below, provided that return on System holdings of foreign currencies, or for drawings by either party to any such arrangement shall the purpose of adjusting interest rates paid or received be fully liquidated within 12 months after any amount in connection with swap drawings, transactions with outstanding at that time was first drawn, unless the foreign central banks may be undertaken at non-market Committee, because of exceptional circumstances, spe- exchange rates. cifically authorizes a delay. 4. It shall be the normal practice to arrange with D. To maintain an overall open position in all foreign central banks for the coordination of foreign foreign currencies not exceeding $25.0 billion. For this currency transactions. In making operating arrangements purpose, the overall open position in all foreign curren- with foreign central banks on System holdings of foreign cies is defined as the sum (disregarding signs) of net currencies, the Federal Reserve Bank of New York shall positions in individual currencies. The net position in a not commit itself to maintain any specific balance, single foreign currency is defined as holdings of bal- unless authorized by the Federal Open Market Commitances in that currency, plus outstanding contracts for tee. Any agreements or understandings concerning the future receipt, minus outstanding contracts for future administration of the accounts maintained by the Federal delivery of that currency, i.e., as the sum of these ele- Reserve Bank of New York with the foreign banks ments with due regard to sign. designated by the Board of Governors under Section 2. The Federal Open Market Committee directs the 214.5 of Regulation N shall be referred for review and Federal Reserve Bank of New York to maintain recipro- approval to the Committee. cal currency arrangements ("swap" arrangements) for 5. Foreign currency holdings shall be invested insofar the System Open Market Account for periods up to a as practicable, considering needs for minimum working maximum of 12 months with the following foreign balances. Such investments shall be in liquid form, and banks, which are among those designated by the Board generally have no more than 12 months remaining to of Governors of the Federal Reserve System under Sec- maturity. When appropriate in connection with arrangetion 214.5 of Regulation N, Relations with Foreign ments to provide investment facilities for foreign cur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 399 rency holdings, U.S. Government securities may be pur- tions, provided that market exchange rates for the U.S. chased from foreign central banks under agreements for dollar reflect actions and behavior consistent with the repurchase of such securities within 30 calendar days. IMF Article IV, Section 1. 6. All operations undertaken pursuant to the preced- 2. To achieve this end the System shall: ing paragraphs shall be reported promptly to the Foreign A. Undertake spot and forward purchases and sales Currency Subcommittee and the Committee. The For- of foreign exchange. eign Currency Subcommittee consists of the Chairman B. Maintain reciprocal currency ("swap") arrangeand Vice Chairman of the Committee, the Vice Chair- ments with selected foreign central banks and with the man of the Board of Governors, and such other member Bank for International Settlements. of the Board as the Chairman may designate (or in the C. Cooperate in other respects with central banks absence of members of the Board serving on the Sub- of other countries and with international monetary committee, other Board members designated by the institutions. Chairman as alternates, and in the absence of the Vice 3. Transactions may also be undertaken: Chairman of the Committee, his alternate). Meetings of A. To adjust System balances in light of probable the Subcommittee shall be called at the request of any future needs for currencies. member, or at the request of the Manager for Foreign B. To provide means for meeting System and Trea- Operations, System Open Market Account ("Man- sury commitments in particular currencies, and to faciliager"), for the purposes of reviewing recent or contem- tate operations of the Exchange Stabilization Fund. plated operations and of consulting with the Manager C. For such other purposes as may be expressly on other matters relating to his responsibilities. At the authorized by the Committee. request of any member of the Subcommittee, questions 4. System foreign currency operations shall be arising from such reviews and consultations shall be conducted: referred for determination to the Federal Open Market A. In close and continuous consultation and coop- Committee. eration with the United States Treasury; 7. The Chairman is authorized: B. In cooperation, as appropriate, with foreign A. With the approval of the Committee, to enter monetary authorities; and into any needed agreement or understanding with the C. In a manner consistent with the obligations of Secretary of the Treasury about the division of responsi- the United States in the International Monetary Fund bility for foreign currency operations between the Sys- regarding exchange arrangements under the IMF tem and the Treasury; Article IV. B. To keep the Secretary of the Treasury fully advised concerning System foreign currency operations, By unanimous vote, the Procedural Instructions and to consult with the Secretary on policy matters with Respect to Foreign Currency Operations relating to foreign currency operations; shown below were amended to reflect the new title C. From time to time, to transmit appropriate reports and information to the National Advisory Coun- of Manager for Foreign Operations, System Open cil on International Monetary and Financial Policies. Market Account. 8. Staff officers of the Committee are authorized to transmit pertinent information on System foreign currency operations to appropriate officials of the Treasury Department. PROCEDURAL INSTRUCTIONS WITH RESPECT 9. All Federal Reserve Banks shall participate in the TO FOREIGN CURRENCY OPERATIONS foreign currency operations for System Account in accordance with paragraph 3.G(1) of the Board of Gover- Amended February 3, 1994 nors' Statement of Procedure with Respect to Foreign Relationships of Federal Reserve Banks dated January 1, 1944. In conducting operations pursuant to the authorization and direction of the Federal Open Market Committee as By unanimous vote, the Foreign Currency Direc- set forth in the Authorization for Foreign Currency Operations and the Foreign Currency Directive, the Federal tive shown below was reaffirmed. Reserve Bank of New York, through the Manager for Foreign Operations, System Open Market Account ("Manager"), shall be guided by the following procedural understandings with respect to consultations and FOREIGN CURRENCY DIRECTIVE clearances with the Committee, the Foreign Currency Subcommittee, and the Chairman of the Committee. All Reaffirmed February 3, 1994 operations undertaken pursuant to such clearances shall be reported promptly to the Committee. 1. System operations in foreign currencies shall gen- 1. The Manager shall clear with the Subcommittee erally be directed at countering disorderly market condi- (or with the Chairman, if the Chairman believes that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 Federal Reserve Bulletin • May 1994 consultation with the Subcommittee is not feasible in the operational flexibility to respond on short notice to time available): unanticipated developments. A. Any operation that would result in a change in the System's overall open position in foreign currencies exceeding $300 million on any day or $600 million since Votes for this action: Messrs. Greenspan, McDonough, the most recent regular meeting of the Committee. Broaddus, Forrestal, Kelley, LaWare, Lindsey, Parry, B. Any operation that would result in a change on and Ms. Phillips. Vote against this action: Mr. Jordan. any day in the System's net position in a single foreign Absent and not voting: Messrs. Angell and Mullins. currency exceeding $150 million, or $300 million when the operation is associated with repayment of swap Mr. Jordan dissented because he felt that providdrawings. C. Any operation that might generate a substantial ing funds to the Treasury using a warehousing volume of trading in a particular currency by the System, arrangement was, in effect, a loan to the Treasury. even though the change in the System's net position in In his opinion, direct financing of government operthat currency might be less than the limits specified ations by the central bank is inappropriate and in l.B. could compromise the effective conduct of mone- D. Any swap drawing proposed by a foreign tary policy. He did not rule out the possible efficacy bank not exceeding the larger of (i) $200 million or (ii) 15 percent of the size of the swap arrangement. of some warehousing transactions in very excep- 2. The Manager shall clear with the Committee (or tional circumstances in the future, but he believed with the Subcommittee, if the Subcommittee believes that the latter should be approved only after full that consultation with the full Committee is not feasible Committee discussion. Accordingly, he did not in the time available, or with the Chairman, if the Chairwant to retain the standing $5 billion authorization. man believes that consultation with the Subcommittee is not feasible in the time available): By unanimous vote, the minutes of actions taken A. Any operation that would result in a change in at the meeting of the Federal Open Market Comthe System's overall open position in foreign currencies mittee held on December 21, 1993, were approved. exceeding $1.5 billion since the most recent regular The Manager for Foreign Operations reported on meeting of the Committee. B. Any swap drawing proposed by a foreign bank developments in foreign exchange markets during exceeding the larger of (i) $200 million or (ii) 15 percent the period since the December meeting. There were of the size of the swap arrangement. no System open market transactions in foreign 3. The Manager shall also consult with the Subcom- currencies during this period, and thus no vote was mittee or the Chairman about proposed swap drawings required of the Committee. by the System and about any operations that are not of a routine character. The Manager for Domestic Operations reported on developments in domestic financial markets and on System open market transactions in government securities and federal agency obligations during the AGREEMENT TO "WAREHOUSE" FOREIGN period December 21, 1993, through February 3, CURRENCIES 1994. By unanimous vote, the Committee ratified these transactions. At its meeting on February 2-3, 1993, the Commit- The Committee then turned to a discussion of the tee had reaffirmed the $5 billion limit on the economic and financial outlook, the ranges for the amount of eligible foreign currencies that the Sys- growth of money and debt in 1994, and the impletem was prepared to "warehouse" for the Treasury mentation of monetary policy over the intermeeting and the Exchange Stabilization Fund (ESF). The period ahead. A summary of the economic and purpose of the warehousing facility is to supple- financial information available at the time of the ment, at the discretion of the Federal Reserve, the meeting and of the Committee's discussion is U.S. dollar resources of the Treasury and the ESF provided below, followed by the domestic policy for financing their purchases of foreign currencies directive that was approved by the Committee and and related international operations. There had issued to the Federal Reserve Bank of New York. been no use of this facility since an ESF repayment The information reviewed at this meeting indiof $2 billion on April 2, 1992. The Committee cated that economic activity recorded a strong decided at this meeting to reaffirm the $5 billion advance during the closing months of 1993, and the ceiling, which it viewed as providing adequate limited data available on production and employ- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 401 ment suggested appreciable further gains in the ture, appliances, and other household equipment— early weeks of this year. Housing starts had registered further large gains. By contrast, real strengthened substantially in the fourth quarter of outlays for nondurable goods and services rose last year, and business fixed investment had regis- only moderately. Housing starts jumped in Decemtered a sharp rise. Increases in broad indexes of ber, with both single-family and multifamily starts consumer and producer prices, excluding their food sharing in the advance. For 1993 as a whole, housand energy components, had been somewhat larger ing starts were at their highest annual total in four in recent months than earlier in 1993, and prices of years. Sales of new homes were up sharply in a number of commodities had turned up. November, and sales of existing homes ended the Assessment of the January labor market data was year at the highest monthly level in the twentycomplicated by statistical revisions and weather- five-year history of the series. related reporting problems, but a variety of indica- Real business fixed investment recorded a very tors pointed convincingly to a further strengthening large increase in the fourth quarter. Business spendin the demand for labor. Total nonfarm payroll ing for equipment, notably for information processemployment posted a small gain in January after a ing equipment, was up sharply for a seventh sizable December increase. Manufacturing employ- straight quarter. The strength evident in recent ment rose for a fourth consecutive month, with orders for nondefense capital goods pointed to furgains again concentrated in motor vehicles. Con- ther gains in shipments of these goods in early struction payrolls edged down, evidently reflecting 1994. Outlays for nonresidential structures in the the adverse effects of severe winter weather. The fourth quarter posted their largest quarterly rise in total number of jobs in the services industries was six years; the increases were spread across a broad unchanged in January, but the inclement weather array of categories other than office buildings. Conapparently held down employment in some seg- struction permits continued to rise in the fourth ments of this sector as well. The average workweek quarter, suggesting further growth of investment in of production or nonsupervisory workers rose in nonresidential structures in the near term. January to its highest level in almost five years; for Business inventories remained generally well manufacturing, the average workweek remained at aligned with sales through November, the most its post-World War II high for a third consecutive recent month for which complete data were availmonth. The civilian unemployment rate, calculated able. In manufacturing, inventory stocks fell in on a new basis, was 6.7 percent in January. December after edging lower in November; with Industrial production increased appreciably fur- brisk gains in shipments in both months, the ratio ther in December, and the available information of stocks to shipments fell further from levels that suggested a considerable rise in January. In Decem- already were low by historical standards. At the ber, the advance in manufacturing was led by the wholesale level, inventories rose moderately in motor vehicle and computing equipment industries. November after little change in the preceding two Sizable increases in materials and construction sup- months. The inventory-to-sales ratio for this sector plies also were recorded. On the other hand, the had changed little since May. Retail inventories output of consumer goods other than motor vehi- expanded substantially in November for a third cles was sluggish, and the production of aircraft straight month. The buildup of stocks might and defense and space equipment continued to have been in anticipation of robust holiday sales, shrink. Total utilization of manufacturing capacity but for some retail businesses, particularly general rose again in December and reached a relatively merchandise stores, the increases coincided high level, judged against historical experience. with weak sales. For the retail sector as a whole, Consumer spending, as measured by real per- the inventory-to-sales ratio was up slightly in sonal consumption expenditures, posted another November. solid increase in the fourth quarter, and strong sales The average nominal U.S. merchandise trade defof motor vehicles in January suggested continued icit for the October-November period was about buoyancy in consumer demand. In the fourth the same as its average rate in the third quarter. The quarter, real outlays on motor vehicles surged, and value of exports was up for the two-month period, spending on other durable goods—notably furni- with the increase occurring largely in machinery, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 Federal Reserve Bulletin • May 1994 automotive products, and aircraft. The higher value reserve positions throughout the intermeeting of imports for the two-month period reflected, as period. Additional reserves were supplied to the had been the case earlier in 1993, greater imports banking system on a temporary basis around yearof consumer goods, automotive products, and end to meet seasonal movements in currency and machinery. Trends in economic activity in the required reserves as well as an enlarged demand major foreign industrial countries appeared to have for excess reserves. For the intermeeting period as diverged further in the fourth quarter. Moderate a whole, the federal funds rate remained close to growth appeared to be continuing in Canada and 3 percent while adjustment plus seasonal borrowthe United Kingdom, but economic activity seemed ing averaged somewhat more than anticipated. to be growing more slowly or to have turned down Most market interest rates declined slightly durin Japan, western Germany, and France. ing the intermeeting period, and major indexes of Producer prices of finished goods were down stock prices posted new highs. Market participants slightly in December after being unchanged in saw the incoming news on inflation as encourag- November. Excluding the food and energy compo- ing; still, they viewed the economy as relatively nents, producer prices edged higher in December robust, and on balance they deemed a firming of and were up slightly for the year as a whole. At the monetary policy to counteract a potential buildup retail level, consumer prices rose modestly in of inflation pressures as likely in the next few November and December, with energy price de- months, but probably not in the very near term. clines holding down the increase in the overall In foreign exchange markets, the trade-weighted index. For items other than food and energy, prices value of the dollar in terms of the other G-10 advanced in the two months at a slightly faster pace currencies changed little on balance over the interthan that seen over previous months of the year; for meeting period. The dollar fell against the yen in 1993 as a whole, the increase was about the same the context of somewhat higher Japanese interest as in 1992. Hourly compensation of private indus- rates and renewed expressions of U.S. concern try workers increased in the fourth quarter at the about bilateral trade issues. The dollar appreciated same pace as in the third quarter. For 1993, the rise slightly relative to the German mark and other in hourly compensation was little changed from the European currencies against the background of relprevious year. Average hourly earnings of produc- atively strong U.S. economic data and generally tion or nonsupervisory workers rose sharply in sluggish economic activity in continental Europe. January, but for the twelve months ended in Growth of the broad monetary aggregates, January, the increase was the same as that recorded though a little faster than in most of 1993, refor the previous twelve months. mained relatively slow over December and Janu- At its meeting on December 21, 1993, the Com- ary. Investors evidently continued to find lowmittee adopted a directive that called for maintain- yielding deposits less appealing than stock and ing the existing degree of pressure on reserve posi- bond mutual funds, although recent inflows to bond tions and that did not include a presumption about funds appeared to have been at a slower rate than the likely direction of any adjustment to policy that seen over most of 1993. For the year 1993, during the intermeeting period. Accordingly, the growth of both M2 and M3 was estimated to have directive indicated that in the context of the Com- been slightly above the lower ends of the Commitmittee's long-run objectives for price stability and tee's ranges. Private borrowing had picked up in sustainable economic growth, and giving careful recent months, and total domestic nonfinancial debt consideration to economic, financial, and monetary expanded at a somewhat faster, though still moderdevelopments, slightly greater or slightly lesser ate, pace in the fourth quarter; for the year, nonreserve restraint might be acceptable during the financial debt was estimated to have been in the intermeeting period. The reserve conditions associ- lower half of the Committee's monitoring range. ated with this directive were expected to be consis- The staff forecast prepared for this meeting sugtent with modest growth of M2 and M3 over the gested that economic expansion would slow from following months. the very strong pace of the fourth quarter, but that Open market operations were directed toward the economy still would advance in 1994 at a rate maintaining the existing degree of pressure on somewhat in excess of the growth of potential. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 403 severe winter weather over much of the country context of low and decreasing slack in the econand the California earthquake would tend to distort omy, little further progress would be made toward economic indicators for the early part of the year; price stability in 1994, and there was a distinct risk however, taken together, these developments were of higher inflation at some point if monetary policy not expected to have a material or lasting effect on were not adjusted. While broad measures of inflathe overall level of activity or prices. Consumer tion did not on the whole suggest any changes in spending, which for some time had tended to out- inflation trends, some members noted that a numpace the growth of disposable income, was pro- ber of commodity prices had turned up in recent jected to increase at a rate more in line with months, and they referred to still scattered but incomes. Business fixed investment was expected increasing anecdotal reports that some business to decelerate gradually from the very rapid rate of firms were paying slightly higher prices for various 1993, reflecting the diminishing effect of the earlier materials purchased for use in the production pickup in output growth, the slower growth of process. corporate cash flow, and a less rapid decline in the In keeping with the practice at meetings when cost of capital. Homebuilding activity, driven by the Committee establishes its long-run ranges for the greatly improved affordability of housing and growth of the money and debt aggregates, the increased confidence in employment prospects, was Committee members and the Federal Reserve Bank anticipated to continue at a relatively brisk pace presidents not currently serving as members had through much of the year. Exports were projected prepared projections of economic activity, the rate to strengthen somewhat, bolstered by some pickup of unemployment, and inflation for 1994. The cenin foreign economic growth, and fiscal restraint tral tendency of the forecasts pointed to somewhat was expected to exert a reduced drag on spending. faster economic growth this year than currently In light of the limited margins of slack in labor and was estimated for 1993. The anticipated rate of product markets that were anticipated to prevail economic expansion was expected to foster a limover the forecast horizon, the ongoing expansion ited further drop in the rate of unemployment by was projected to be associated with only a slight the fourth quarter of this year. With the slack in further reduction in the core rate of inflation. productive resources expected to diminish further In the Committee's discussion of current and to a quite low level, price and cost pressures were prospective economic developments, members unlikely to abate significantly; indeed, price commented that the economy had entered the new increases in 1994 could exceed those of 1993 when year with appreciable forward momentum and inflation had been held down by favorable developthat the expansion was likely to be sustained over ments in energy prices. Measured from the fourth the year ahead at a pace somewhat above the quarter of 1993 to the fourth quarter of 1994, the economy's long-run potential. The very rapid rate forecasts for growth of real GDP had a central of economic growth now indicated for the fourth tendency of 3 to 3]A percent and a full range of 2L/Z quarter of 1993 clearly could not be maintained. to 33/4 percent. Projections of the civilian rate of Much of the recent impetus to the expansion unemployment in the fourth quarter of 1994 were stemmed from a surge in expenditures on housing, all in a range of 6V2 to 63A percent calculated on the business equipment, and consumer durables. Such basis of the new survey recently introduced by the spending had reached a very high level in relation Bureau of Labor Statistics. For the CPI, the central to underlying demands so that the pace of addi- tendency of the forecasts for the period from the tional increases undoubtedly would moderate dur- fourth quarter of 1993 to the fourth quarter of 1994 ing the course of 1994. Still, the economic expan- was centered on increases of about 3 percent within sion seemed to have considerable momentum, a range of 2L A to 4 percent, and for nominal GDP largely as a consequence of diminishing balance the forecasts were clustered in a range of 5lA to sheet constraints and generally favorable financial 6 percent for the year. conditions spurred by a highly accommodative In the Committee's review of factors underlying monetary policy. As a consequence, a number of recent developments, members observed that genmembers expressed the view that the risks were on erally favorable financial conditions provided a the upside of a moderate growth forecast. In the backdrop conducive to further robust expansion in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 Federal Reserve Bulletin • May 1994 business activity. Much of the recent strengthening porary. In any event, the very rapid rates of growth in economic growth was generated by increased in sales of automobiles and other consumer duraspending in interest-sensitive sectors of the econ- bles were not sustainable, and already high conomy such as housing in response to relatively low sumer debt ratios would be a further inhibiting interest rates. Generally buoyant equity markets, a factor. It was noted in this connection that conreadier availability of financing from lending insti- sumer debt had become more concentrated over the tutions, and the strengthened financial condition course of recent years among consumer groups that of businesses and households also were cited as were most likely to borrow to help finance their factors tending to boost economic activity. Balance spending, with the result that the ability of such sheet restructuring activities appeared to have consumers to incur additional indebtedness could slackened markedly, and while balance sheet be diminished. Higher taxes confronting some adjustments probably were still being made, the households also were cited as a negative factor in latter seemed to be exerting much less restraint on the outlook for the consumer sector. On balance, the willingness of businesses and especially house- however, while the prospects for consumer spendholds to spend and to incur new debt to finance ing clearly were not free of uncertainty, the marked growing expenditures. improvement in consumer confidence and favor- In their reports on developments across the able financial conditions would provide a setting nation, members commented on widespread indi- conducive to sustained moderate growth in concations of improving economic activity, including sumer expenditures. some strengthening in regions that earlier were The improvement in consumer sentiment tocharacterized by stagnant business conditions. gether with the availability of relatively low cost Some areas continued to be affected adversely by financing had fostered very strong growth in housspecial factors, especially by spending cutbacks in ing construction over the closing months of 1993 defense and aerospace industries. California was a and, adjusting for seasonal weather conditions, annotable example, but a range of indicators sug- ecdotal reports from many areas suggested a congested that the California economy might be stabi- tinued robust performance in this sector of the lizing, albeit at a depressed level, after an extended economy in the early weeks of this year. The period of declining activity. Mirroring these devel- strength in housing activity had induced increases opments, business sentiment was characterized as in the costs of lumber and other building materials, generally optimistic around the nation. While busi- and shortages of skilled construction workers were ness executives remained cautious in their hiring reported in some areas. Despite these developpractices, the expansion in business activity was ments, prices of new homes did not appear at this fostering sizable overall gains in employment point to be under significant upward pressure. even in areas where some major business concerns Looking ahead, with housing construction already were reducing their workforces. A few large at high levels, further gains over the course of 1994 firms that previously had frozen or reduced their were expected to be substantially below those payrolls were now reported to be hiring additional recorded in recent quarters. workers. Business fixed investment was likely to be sus- Turning to prospective developments in key sec- tained by continuing efforts to modernize productors of the economy, the members anticipated that tion facilities in order to achieve more efficient the expansion in consumer expenditures would be operations in highly competitive domestic and well maintained during 1994, though the growth in world markets. The gains in such investment had such spending probably would moderate to a pace been concentrated in expenditures for equipment, more in line with gains in disposable income. The and while new orders pointed to further brisk available data on retail sales since the holiday growth in the months ahead, increases in such period were still limited, but anecdotal reports expenditures were likely to moderate over time. At pointed to continuing momentum in several parts the same time, growing economic activity and of the country. Winter storms had hindered sales in associated declines in commercial and industrial a number of areas, but according to some retail vacancy rates, at least in some parts of the country, contacts the adverse effects were likely to be tem- suggested that nonresidential building construction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 405 other than office structures would post sizable demands already were exerting inflationary presincreases over the year. Rebuilding activity follow- sures in the economy. ing the earthquake in California would stimulate The members generally expressed concern about engineering and construction in the Los Angeles a buildup in inflationary pressures during the year area over the quarters ahead. ahead, especially if what they currently viewed as a Fiscal policy and foreign trade had exerted very accommodative monetary policy were mainretarding effects on the economy in 1993. While tained. A number of members emphasized that the response of the economy to fiscal restraint and even with the substantial slowing that they anticithe outlook for export markets remained subject to pated in the rate of economic expansion from the substantial uncertainty, both fiscal policy and the very rapid growth in the fourth quarter, overall trade deficit were expected at this point to be less margins of slack in labor and product markets, negative factors in the performance of the economy already reduced to fairly modest levels, would during 1994. With regard to the outlook for fiscal shrink further in the quarters ahead with the clear policy, the downtrend in defense spending was possibility that various imbalances and added inflaprojected to moderate and to contribute to a smaller tion would emerge in the absence of monetary net decline in overall federal government expendi- tightening actions. Continuing upward impetus to tures on goods and services in 1994. It was noted food prices, resulting from the adverse weather that the widespread political support of efforts conditions during 1993, and the likelihood that to curtail federal government deficits could be energy prices would not decline further and might expected to continue to contain new federal spend- in fact turn up in an environment of somewhat ing initiatives. With regard to the outlook for U.S. stronger worldwide demand for energy products exports, more accommodative fiscal or monetary could add to overall price pressures. policies abroad were expected to foster a gradual The members acknowledged that broad meaimprovement in rates of economic growth in major sures of prices and wages had displayed mixed foreign industrial countries with beneficial effects patterns over recent months and that on the whole on the demand from those countries for U.S. goods they did not yet point to any clear change in inflaand services. One member also commented that tion trends. However, some other indicators were NAFTA already seemed to be having a favorable more disquieting. One example was the growing, effect on some exports to Mexico. though still limited, number of anecdotal reports of One sector of the economy that was viewed as a shortages of skilled workers in some parts of the source of particular uncertainty was the outlook for country or occupations, notably construction. inventories. Business firms continued to maintain Moreover, there were more reports of rising prices tight control over their inventories, and in general for products being purchased by business firms for the latter were at quite low levels in relation to use in the production process and in turn of sucsales. Indeed, there were some anecdotal reports cessful efforts by businesses to raise their own that inventory shortfalls had resulted in the loss of prices in order to pass on higher costs or to sales in recent months. Lean inventory levels in the improve their profit margins. More generally, many context of diminishing slack in labor and product commodity prices had increased over the past sevmarkets raised concerns about the potential for eral weeks. On the positive side, competitive presincreasing capacity pressures should strong de- sures remained intense in many markets, augmands persist that would tend to deplete existing mented in markets for numerous products by inventories and lead to efforts not only to rebuild competition from foreign producers. Some membut to increase them. Thus far, there were few signs bers also commented that the tradeoff between of developments such as significant increases in economic growth and inflation would be improved delivery lead times or in the costs of goods pur- over the year ahead to the extent that the credichased by business firms that in the past had trig- bility of the System's anti-inflationary policy was gered substantial inventory buildups. However, maintained. there were ample precedents in the history of In keeping with the requirements of the Full business-cycle expansions of efforts to accumulate Employment and Balanced Growth Act of 1978 large inventories in periods when strong final (the Humphrey-Hawkins Act), the Committee at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 Federal Reserve Bulletin • May 1994 this meeting reviewed the ranges for growth of the assessment assumed that households would conmonetary and debt aggregates in 1994 that it had tinue to redirect savings from M2-type accounts to established on a tentative basis at its meeting on higher-yielding investments, especially bond and July 6-7, 1993. The tentative ranges included stock mutual funds. However, such redeployments expansion of 1 to 5 percent for M2 and 0 to 4 per- of funds should moderate this year to the extent cent for M3, measured from the fourth quarter of that some investors already had accomplished a 1993 to the fourth quarter of 1994. The monitoring considerable portion of their desired portfolio realrange for growth of total domestic nonfinancial locations and in light of the possibility that changes debt had been set provisionally at 4 to 8 percent for in the prices of stocks and bonds, including the 1994. All of these ranges were unchanged from drop in bond prices in recent months, would underthose that the Committee had set for 1993; the line the risks of holding such instruments. Morelatter had been adjusted down to take account of over, depository institutions had strengthened their ongoing increases in velocity. capital positions markedly and were likely to com- In the Committee's discussion of the ranges for pete more aggressively for M2 and especially for 1994, which tended to focus on M2, all the mem- M3-type deposits in an effort to maintain or bers expressed a preference for affirming the M2 increase their role in the financing of expanding and M3 ranges that had been established on a economic activity. While these developments and provisional basis in July and all but one favored their implications for monetary growth could not adopting the provisional monitoring range for non- be forecast with confidence, the members believed financial debt; that member preferred a lower that the ranges under consideration would probably range. Many of the members commented on the be sufficiently wide to accommodate M2 and M3 uncertainties that surrounded the establishment of growth rates under a variety of likely velocity ranges that were consistent with the Committee's scenarios. For example, if the factors that had goals for the economy. They noted that a variety of tended to depress the growth of the broad aggredevelopments had altered the historical relation- gates in relation to income did not abate as ships between the monetary aggregates and broad expected this year, M2 and M3 growth would again measures of economic performance over the past be near the lower bounds of the Committee's several years. The resulting uncertainty implied ranges. Alternatively, if the behavior of these that the Committee needed to retain a flexible aggregates were to move closer to earlier patterns, approach to the behavior of the monetary aggre- growth in the upper portions of the ranges would gates in relation to their ranges, including the need foster an economic performance in line with the to assess a broad array of other indicators to gauge members' forecasts. the implications of monetary growth developments. From the perspective of a longer time horizon, Nonetheless, the members concluded that as best many of the members noted that the provisional they could evaluate evolving financial conditions at range for M2 was essentially at a level that could this point, monetary growth within the tentative well prove to be consistent with sustained and ranges would be likely to promote the Committee's noninflationary economic expansion. This concluobjectives of sustained economic expansion and sion assumed that historical relationships between subdued inflation. money growth and the expansion of broad mea- In 1993, both M2 and M3 had grown at rates sures of economic performance would be restored about Vi percentage point above the lower bounds at some point. In the absence of such a developof the ranges that the Committee now contemplated ment or the emergence of new, reasonably stable retaining for 1994. According to a staff analysis relationships, the Committee would have to conprepared for this meeting, somewhat faster growth tinue to place diminished reliance on the monetary in both of these aggregates could be expected in aggregates in the formulation of monetary policy. 1994. But with nominal GDP also expected to be With regard to the range for nonfinancial debt, stronger, as indicated by the central tendency of the the members anticipated that its growth this year members' forecasts, the velocity of M2 would con- would remain within the contemplated range. A tinue to rise at an appreciably faster rate than staff analysis suggested that its federal borrowing historical relationships would have suggested. This component would decrease as a result of the ongo- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 407 ing effects of deficit reduction measures that had stance, though views differed to some extent with been enacted and the rise in tax receipts stemming regard to the amount of the adjustment. The current from economic growth. At the same time, borrow- policy posture, which had been in effect since the ing by the nonfederal sectors should strengthen late summer of 1992, was highly stimulative as further against the backdrop of more comfortable evidenced, for example, by very low or even financial positions and the expected pickup in GDP slightly negative real short-term interest rates and, expansion. In one view, however, a somewhat in the view of at least some members, the relatively lower range was desirable for nonfinancial debt. In rapid growth over an extended period in narrow light of the shift in business preferences away from measures of money and reserves. Such a policy had debt and toward equity, debt velocity could been appropriate in a period when various developincrease and slower growth in debt would be con- ments had tended to inhibit the expansion, includsistent with the Committee's objectives. However, ing widespread efforts to repair strained balance this member could accept the higher range favored sheets and a variety of business restructuring activby the other members for 1994. ities that had tended to depress confidence and At the conclusion of the Committee's discussion, spending. More recently, the considerable progress all the members indicated that they favored or made by households and businesses in decreasing could accept the ranges for 1994 that the Commit- their debt service burdens and the much strengthtee had established on a tentative basis at its meet- ened capital positions of lending institutions had ing in July 1993. In keeping with the Committee's provided a financial basis, in the context of low usual procedures under the Humphrey-Hawkins interest rates, for growth in demands on productive Act, the ranges would be reviewed at midyear, or capacity that could generate inflation pressures. In sooner if deemed necessary, in light of the behavior this situation, the members agreed that monetary of the aggregates and interim economic and finan- policy should be adjusted toward a more neutral cial developments. The Committee approved the stance that would encourage sustained economic following paragraph for inclusion in the domestic growth without a buildup of inflationary imbalpolicy directive: ances. The members recognized that timely action was needed to preclude the necessity for more The Federal Open Market Committee seeks monetary vigorous and disruptive policy moves later if inflaand financial conditions that will foster price stability tionary pressures were allowed to intensify. The and promote sustainable growth in output. In furtherance history of past cyclical upswings had demonstrated of these objectives, the Committee at this meeting estabthe inflationary consequences and adverse effects lished ranges for growth of M2 and M3 of 1 to 5 percent and 0 to 4 percent respectively, measured from the on economic activity of delayed anti-inflation fourth quarter of 1993 to the fourth quarter of 1994. The policy actions. Committee anticipated that developments contributing to In the course of the Committee's discussion, a unusual velocity increases could persist during the year number of members endorsed a policy move that and that money growth within these ranges would be consistent with its broad policy objectives. The monitor- would involve only a slight adjustment toward a ing range for growth of total domestic nonfinancial debt less accommodative degree of reserve pressure. was set at 4 to 8 percent for the year. The behavior of the These members recognized that evolving economic monetary aggregates will continue to be evaluated in the conditions might well justify a somewhat greater light of progress toward price level stability, movements policy adjustment. They believed, however, that in their velocities, and developments in the economy and financial markets. even a slight move at this time was likely to have a particularly strong impact on financial markets Votes for this action: Messrs. Greenspan, McDonough, because it would be the first policy change after a Broaddus, Forrestal, Jordan, Kelley, LaWare, Lindsey, long hiatus and indeed the first tightening action in Parry, and Ms. Phillips. Votes against this action: about five years. The market effect might be ampli- None. Absent and not voting: Messrs. Angell and fied by a contemplated decision to authorize the Mullins. Chairman to announce the policy action (discussed below). In the circumstances, these members felt In the Committee's discussion of policy for the that a somewhat greater policy adjustment would intermeeting period ahead, the members favored an incur an unacceptable risk of dislocative repercusadjustment toward a less accommodative policy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 Federal Reserve Bulletin • May 1994 sions in financial markets. A relatively small move disclosure of Committee information at a later would readily accomplish the purposes of signaling meeting. the Committee's anti-inflation resolve and together At the conclusion of the Committee's discussion, with expected further action should help to temper all the members indicated that they could support a or avert an increase in inflation expectations and directive that called for a slight increase in the speculative developments in financial markets. degree of pressure on reserve positions and that did Other members indicated a preference for a not include a presumption about the likely direction somewhat greater firming action that would move of any adjustment to policy during the intermeeting monetary policy closer to a desirable neutral stance. period. Accordingly, the Committee decided that in In this view, recent developments in the economy the context of its long-run objectives for price had demonstrated that monetary policy was much stability and sustainable economic growth, and too accommodative and that slow, gradual tighten- giving careful consideration to economic, financial, ing moves risked allowing inflation pressures to and monetary developments, slightly greater or build. A more decisive policy move at this juncture slightly lesser reserve restraint might be acceptable would in fact reduce uncertainty, because fewer during the intermeeting period. The reserve condidiscrete actions would be required and they would tions contemplated at this meeting were expected have a more pronounced and desirable effect in to be consistent with moderate growth in M2 and curbing inflationary sentiment and thus in mini- M3 over the first half of 1994. mizing upward pressures on longer-term interest At the conclusion of the meeting, the Federal rates over time. The result would be a policy stance Reserve Bank of New York was authorized and that was more consistent with sustained economic directed, until instructed otherwise by the Commitexpansion and progress toward price stability. tee, to execute transactions in the System Account In further discussion, all the members indicated in accordance with the following domestic policy that they could accept the proposed slight policy directive: adjustment at this point, but many observed that additional firming probably would be desirable The information reviewed at this meeting indicates a strong advance in economic activity during the closing later. The members did not see any unusual likelimonths of 1993, and the limited data available for the hood that a further policy action would be needed early weeks of this year suggest appreciable further during the intermeeting period, and the Committee gains. The January labor market data were complicated therefore decided to retain an unbiased intermeet- by statistical revisions and weather-related reporting ing instruction in the directive. In this connection, problems; however, a variety of indicators pointed convincingly to a continuing expansion of employment. it was understood that the Committee would be Industrial production increased sharply in the fourth prepared to review its policy stance and take furquarter and appears to have risen considerably further in ther action, if warranted by intermeeting develop- January. Consumer spending and housing activity posted ments, at a telephone conference during the period solid gains in late 1993, and strong sales of motor ahead. vehicles in January suggested continued buoyancy in consumer demand. Trends in contracts and orders point At this meeting, Committee members discussed to further sizable gains in business fixed investment. The and agreed on a proposal to have the Chairman average nominal U.S. merchandise trade deficit in announce the Committee's short-term policy deci- October-November was about the same as its average sion promptly. The purpose of such an announce- rate in the third quarter. Over the latter part of 1993, ment, which would be a departure from past increases in broad indexes of consumer and producer prices, excluding their food and energy components, Committee practice, was to avoid any misinterprewere somewhat larger than earlier in the year and prices tation of the Committee's action and its purpose. of a number of commodities also turned up recently. Because this would be the first tightening policy Most market interest rates have declined slightly since action in a long time, it was likely to attract consid- the Committee meeting on December 21, 1993. In forerable attention. The Committee did not intend this eign exchange markets, the trade-weighted value of the announcement to set any precedents or to imply dollar in terms of the other G-10 currencies is about unchanged over the intermeeting period. any commitments regarding the announcement of Growth of M2 and M3 was relatively slow over its decisions in the future. That matter would be December and January. From the fourth quarter of 1992 reviewed along with other issues relating to the to the fourth quarter of 1993, M2 and M3 are estimated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee Meeting 409 to have grown at rates slightly above the lower ends of existing degree of pressure on reserve positions. In the the Committee's ranges for the year. Private borrowing context of the Committee's long-run objectives for price has picked up in recent months and total domestic nonfi- stability and sustainable economic growth, and giving nancial debt expanded at a moderate rate in the fourth careful consideration to economic, financial, and monequarter; for the year, nonfinancial debt is estimated to tary developments, slightly greater reserve restraint or have increased at a rate in the lower half of the Commit- slightly lesser reserve restraint might be acceptable in tee's monitoring range. the intermeeting period. The contemplated reserve con- The Federal Open Market Committee seeks monetary ditions are expected to be consistent with moderate and financial conditions that will foster price stability growth in M2 and M3 over the first half of 1994. and promote sustainable growth in output. In furtherance of these objectives, the Committee at this meeting estab- Votes for this action: Messrs. Greenspan, McDonough, lished ranges for growth of M2 and M3 of 1 to 5 percent Broaddus, Forrestal, Jordan, Kelley, La Ware, Lindsey, and 0 to 4 percent respectively, measured from the fourth Parry, and Ms. Phillips. Votes against this action: quarter of 1993 to the fourth quarter of 1994. The None. Absent and not voting: Messrs. Angell and Committee anticipated that developments contributing to Mullins. unusual velocity increases could persist during the year and that money growth within these ranges would be consistent with its broad policy objectives. The monitor- It was agreed that the next meeting of the Coming range for growth of total domestic nonfinancial debt mittee would be held on Tuesday, March 22, 1994. was set at 4 to 8 percent for the year. The behavior of the The meeting adjourned at 11:45 a.m. monetary aggregates will continue to be evaluated in the light of progress toward price level stability, movements in their velocities, and developments in the economy and Donald L. Kohn financial markets. Secretary In the implementation of policy for the immediate future, the Committee seeks to increase slightly the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

411 Legal Developments FINAL RULE—AMENDMENT TO RULES These Rules are hereby issued as a final rule. The REGARDING FOREIGN GIFTS AND DECORATIONS Board issued these Rules as an interim rule, with request for public comments, on February 18, 1993. The Board of Governors is amending 12 C.F.R. Part This final rule deviates from the interim rule in only a 264b, its Rules Regarding Foreign Gifts and Decora- few particulars, based upon recommendations retions. The Board's Rules Regarding Foreign Gifts and ceived from the Commission and from interested Decorations provide that requests for Board approval members of the Board's staff. of the acceptance of such expenses must be submitted Effective March 29, 1994, 12 C.F.R. Part 268 is to the Vice Chairman of the Board. The rules do not amended as follows: specify who should act upon such requests in the absence of the Vice Chairman, or in situations where Part 268—Rules Regarding Equal Opportunity the position of Vice Chairman is vacant. Accordingly, this rule will authorize the Board's Administrative Governor to act on requests for Board approval of Subpart A—General Provisions and these expenses when the Vice Chairman is unavail- Administration able. Effective March 17, 1994, 12 C.F.R. Part 264b is Section 268.101—Authority, purpose and scope. amended as follows: Section 268.102—Definitions. Section 268.103—Equal employment designations. Part 264b—Rules Regarding Foreign Gifts and Decorations Subpart B—Board Program To Promote Equal 1. The authority citation for part 264b continues to Opportunity read as follows: Section 268.201—General policy for equal opportu- Authority: 5 U.S.C. 552; 5 U.S.C. 7342, as nity. amended; 12 U.S.C. 248(i). Section 268.202—Board program for equal employment opportunity. 2. In section 264b.3, the last sentence in paragraph (d) Section 268.203—Complaints of discrimination covis amended by removing the period at the end of the ered under this part. sentence and adding the phrase ", or, if the Vice Section 268.204—Pre-complaint processing. Chairman is unavailable, to the Board's Administra- Section 268.205—Individual complaints. tive Governor." in its place. Section 268.206—Dismissals of complaints. Section 268.207—Investigation of complaints. Section 268.208—Hearings. Section 268.209—Final decisions. FINAL RULE—AMENDMENT TO RULES REGARDING EQUAL OPPORTUNITY Subpart C—Provisions Applicable to Particular The Board of Governors is amending 12 C.F.R. Part Complaints 268, its Rules Regarding Equal Opportunity (Rules), to conform those Rules as closely as possible to the Section 268.301—Age Discrimination in Employment Equal Employment Opportunity Commission's (the Act. Commission's) complaint processing regulation for Section 268.302—Equal Pay Act. federal employers, "Federal Sector Equal Employ- Section 268.303—Rehabilitation Act. ment Opportunity", which became effective Octo- Section 268.304—Employment of noncitizens. ber 1, 1992. Section 268.305—Class complaints. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 Federal Reserve Bulletin • May 1994 Subpart D—Review by the Equal Employment Subpart A—General Provisions and Opportunity Commission Administration Section 268.401—Review by the Equal Employment Section 268.101—Authority, purpose and Opportunity Commission. scope. Section 268.402—Time limits for review by the Equal Employment Opportunity Commission. (a) Authority. The regulations in this part (12 C.F.R. Section 268.403—How to seek review. Part 268) are issued by the Board of Governors of the Section 268.404—Procedure on review. Federal Reserve System under the authority of Sec- Section 268.405—Decisions on review. tions 10(4) and ll(i),(k) and (1) of the Federal Reserve Section 268.406—Reconsideration. Act (partially codified in 12 U.S.C. 244 and 248(i),(k) and (1)). Subpart E—Remedies, Enforcement and Civil (b) Purpose and scope. This part sets forth the Board's Actions policy, program and procedures for providing equal opportunity to Board employees and applicants for Section 268.501—Remedies and relief. employment without regard to race, color, religion, Section 268.502—Compliance with EEOC decisions. sex, national origin, age, or physical or mental disabil- Section 268.503—Enforcement of EEOC decisions. ity. It also sets forth the Board's policy, program and Section 268.504—Compliance with settlement agree- procedures for prohibiting discrimination on the basis ments and final decisions. of physical or mental disability in programs and activ- Section 268.505—Civil action: Title VII, Age Discrim- ities conducted by the Board. It also specifies the ination in Employment Act and Rehabilitation Act. circumstances under which the Board will hire or Section 268.506—Civil action: Equal Pay Act. decline to hire persons who are not citizens of the Section 268.507—Effect of filing a civil action. United States, consistent with the Board's operational needs, the requirements and prohibitions of the Immi- Subpart F—Matters of General Applicability gration Reform and Control Act of 1986, as amended, and other applicable law. Section 268.601—EEO group statistics. Section 268.602—Reports to the Equal Employment Section 268.102—Definitions. Opportunity Commission. Section 268.603—Voluntary settlement attempts. The definitions contained in this section shall have the Section 268.604—Filing and computation of time. following meanings throughout this part unless other- Section 268.605—Representation and official time. wise stated. Section 268.606—Joint processing and consolidation (a) ADEA means the Age Discrimination In Employof complaints. ment Act (29 U.S.C. 621 et seq.). (b) Agent of the class means a class member who acts Subpart G—Prohibition Against Discrimination for the class during the processing of the class comin Board Programs and Activities Because of a plaint under section 268.305 of this part. Physical or Mental Disability (c) Agreement of resolution means the agreement referred to in section 268.305(f)(3) of this part. Section 268.701—Purpose and application. (d) Auxiliary aids as used in subpart G of this part Section 268.702—Notice. means services or devices that enable persons with Section 268.703—Prohibition against discrimination. impaired sensory, manual, or speaking skills to have Section 268.704—Employment. an equal opportunity to participate in, and enjoy the Section 268.705—Program accessibility: Discrimina- benefits of, programs or activities conducted by the tion prohibited. Board. For example, auxiliary aids useful for persons Section 268.706—Program accessibility: Existing fa- with impaired vision include readers, Braille materials, cilities. audio recordings, telecommunication devices and Section 268.707—Program accessibility: New con- other similar services and devices. Auxiliary aids struction and alterations. useful for persons with impaired hearing include tele- Section 268.708—Communications. phone handset amplifiers, telephones compatible with Section 268.709—Compliance procedures. hearing aids, telecommunication devices for deaf persons (TDD's), interpreters, note takers, written mate- Authority: 12 U.S.C. 244 and 248(i), (k) and (1). rials, and other similar services and devices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 413 (e) Board means the Board of Governors of the Fed- (2) Has a record of such an impairment ; or eral Reserve System. (3) Is regarded as having such an impairment; and (f) Class as used in section 268.305 of this part means (4) Shall not include an individual, a Board ema group of Board employees, former employees or ployee or applicant for employment, impaired while applicants for employment who allegedly have been or under the influence of illegal drugs, an individual are being adversely affected by a personnel policy or disabled by alcoholism, or an individual with an practice of the Board that discriminates against the infectious or communicable disease, as further degroup on the basis of their race, color, religion, sex, fined in section 268.303(g) of this part. national origin, age or disability. (p) Investigator means an investigative officer or com- (g) Class complaint means a written complaint of plaint examiner selected or appointed pursuant to discrimination filed on behalf of a class by the agent of sections 268.103(c)(ll) and 268.305(e)(3) of this part, the class alleging that: (q) Is regarded as having an impairment means: (1) The class is so numerous that a consolidated (1) Has a physical or mental impairment that does complaint of the members of the class is impractical; not substantially limit major life activities but is (2) There are questions of fact common to the class; treated by the Board as constituting such a limita- (3) The claims of the agent of the class are typical of tion; the claims of the class; and (2) Has a physical or mental impairment that sub- (4) The agent of the class, or, if represented, the stantially limits major life activities only as a result representative, will fairly and adequately protect the of the attitudes of others toward such impairment; interests of the class. or (h) Commission means the Equal Employment Oppor- (3) Has none of the impairments defined in section tunity Commission. 268.102(s) of this part, but is treated by the Board as (i) Complainant means an aggrieved person who files having such an impairment. an individual complaint pursuant to section 268.205 of (r) Major life activities means functions, such as caring this part, except that complainant shall mean a com- for one's self, performing manual tasks, walking, plainant, agent of the class or individual class claimant seeing, hearing, speaking, breathing, learning and for purposes of sections 268.209, 268.402 through working. 268.406 and subparts E and F of this part. (s) Physical or mental impairment means: (j) Complete complaint as used in subpart G of this (1) Any physiological disorder or condition, cospart means a written statement that contains the metic disfigurement, or anatomical loss affecting one complainant's name and address and describes the or more of the following body systems: Neurologi- Board's alleged discriminatory actions in sufficient cal, musculoskeletal, special sense organs, respiradetail to inform the Board of the nature and date of the tory (including speech organs), cardiovascular, realleged violation. It shall be signed by the complainant productive, digestive, genitourinary, hemic and or by someone authorized to do so on his or her behalf. lymphatic, skin, and endocrine; or Complaints filed on behalf of classes or third parties (2) Any mental or psychological disorder, such as shall describe or identify (by name, if possible) the mental retardation, organic brain syndrome, emoalleged victims of discrimination, tional or mental illness, and specific learning disabil- (k) EEOC decision means the written decision issued ities. by the Commission's Office of Federal Operations as (t) Qualified individual with a disability means: described in section 268.405 of this part. (1) With respect to a Board program or activity (1) Facility means all or any portion of buildings, under which a person is required to perform services structures, equipment, roads, walks, parking lots, or to achieve a level of accomplishment, an individrolling stock or other conveyances, or other real or ual with a disability who meets the essential eligibilpersonal property. ity requirements and who can achieve the purpose (m) Final decision means the Board's decision de- of the program or activity without modifications in scribed in section 268.209 of this part, the program or activity that the Board can determine (n) Has a record of such an impairment means has a on the basis of a written record would result in a history of, or has been classified (or misclassified) as fundamental alteration in its nature; having, a physical or mental impairment that substan- (2) With respect to any other program or activity, an tially limits one or more major life activities, individual with a disability who meets the essential (o) Individual with a disability means a person who: eligibility requirements for participation in, or re- (1) Has a physical or mental impairment which ceipt of benefits from, that program or activity; or substantially limits one or more of such person's (3) With respect to employment, an individual with a major life activities; disability who, with or without reasonable accom- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 Federal Reserve Bulletin • May 1994 modation, can perform the essential functions of the to have engaged in discriminatory practices, or with position in question without endangering the health regard to any other matter which the Administrative and safety of the individual or others, and who Governor believes merits the attention of the Board meets the experience or education requirements of Governors. (which may include passing a written test) of the (b) Staff Director for Management. The Staff Director position in question, for Management shall perform the following functions (u) Title VII means Title VII of the Civil Rights Act (42 under this part: U.S.C. 2000e et seq.). (1) When so authorized by the Administrative Governor, the Staff Director for Management shall make Section 268.103—Equal employment any determinations on complaints of discrimination designations. that would otherwise be made by the Administrative Governor under sections 268.206, 268.209, (a) Administrative Governor. The Administrative Gov- 268.305(i) and 268.709 of this part, settlement purernor, a member of the Board of Governors designated suant to section 268.305(f) of this part and determiby the Chairman of the Board, is charged with over- nations regarding attorney fees pursuant to section seeing the internal affairs of the Board and is empow- 268.501(e) of this part. The Staff Director for Manered to make decisions and determinations on behalf agement shall order such corrective measures, inof the Board when authority to do so is delegated to cluding such remedial actions as may be required by him or her. subpart E of this part as he or she may consider (1) The Administrative Governor is hereby dele- necessary, and including the recommendation for gated the authority to make determinations adjudi- such disciplinary action as is warranted by the cating complaints of discrimination pursuant to sec- circumstances when an employee is found to have tions 268.206, 268.209, 268.305(i) and 268.709 of this engaged in a discriminatory practice. part, unless a member of the Board of Governors (2) The Staff Director for Management shall review has requested that the Board of Governors make the the record on any complaint under this part before a decision on the complaint pursuant to sections determination is made by the Board of Governors or 268.209(a) or 268.709(k) of this part, settlements the Administrative Governor on the complaint and pursuant to section 268.305(f) of this part and deter- make such recommendations as to the determinaminations regarding attorney fees pursuant to sec- tion as he or she considers desirable, including any tion 268.501(e) of this part. The Administrative recommendation for such disciplinary action as is Governor is further delegated the authority to order warranted by the circumstances when an employee such corrective measures, including such remedial is found to have engaged in a discriminatory pracactions as may be required by subpart E of this part, tice. as he or she may consider necessary, including such (3) When authorized by the Administrative Goverdisciplinary action as is warranted by the circum- nor, the Staff Director for Management may make stances when an employee has been found to have changes in programs and procedures designed to engaged in a discriminatory practice. eliminate discriminatory practices and improve the (2) The Administrative Governor may delegate to Board's program for equal employment opportuany officer or employee of the Board any of his or nity. her duties or functions under this part. (c) EEO Programs Director. The EEO Programs Di- (3) The Administrative Governor may refer to the rector is appointed by the Board of Governors and Board of Governors for determination or decision shall perform the following functions under this part: any complaint of discrimination that the Administra- (1) Administer the Board's equal employment optive Governor would otherwise decide pursuant to portunity program and advise the Board, the Adminsections 268.206, 268.209, 268.305(i) and 268.709 of istrative Governor and the Staff Director for Manthis part, settlements pursuant to section 268.305(f) agement with respect to the preparation of equal of this part and determinations regarding attorney employment opportunity plans, goals, objectives, fees pursuant to section 268.501(e) of this part, and procedures, regulations, reports, and other matters may make changes in programs and procedures pertaining to the Board's program established under designed to eliminate discriminatory practices or to section 268.202 of this part; improve the Board's programs under this part, and (2) Advise and consult with the Chairman of the may make any recommendation for remedial or Board of Governors, when necessary, on any matter disciplinary action with respect to managerial or pertaining to the Board's equal employment opporsupervisory employees who have failed in their tunity program and its administration; responsibilities, or employees who have been found (3) Evaluate from time to time the sufficiency of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 415 Board's total program for equal employment oppor- employee or applicant for employment provide that tunity and report to the Board of Governors, the employee or applicant for employment with a copy Administrative Governor and the Staff Director for of this part; Management, with recommendations as to any im- (8) Provide for counseling of aggrieved individuals provement or correction needed, including remedial and for the receipt and processing of individual and or disciplinary action with respect to managerial, class complaints of discrimination; supervisory or other employees who have failed in (9) Provide for the receipt and investigation of their responsibilities; individual complaints of discrimination, subject to (4) Recommend to the Staff Director for Manage- sections 268.204 through 268.209 of this part, and ment and the Administrative Governor changes in provide for the acceptance and processing and/or programs and procedures designed to eliminate dis- dismissal of class action complaints in accordance criminatory practices and improve the Board's pro- with section 268.305 of this part; gram for equal employment opportunity; (10) Act as the Board's designee under section (5) Appoint a Federal Women's Program Manager, a 268.305(c) of this part; Hispanic Program Coordinator, a Disabled Persons (11) Appoint any investigators as necessary to ad- Program Coordinator, and such EEO Counselor(s) minister this part. The EEO Programs Director is as may be necessary to assist the EEO Programs authorized to request the loan or assignment of any Director in carrying out the functions described in investigators or administrative judges from any this part. The EEO Programs Director shall ensure agency as necessary to administer this part. The such managers, coordinators and counselor(s) shall EEO Programs Director shall obtain the concurreceive full and proper training to implement their rence of the Staff Director for Management for all duties and responsibilities under this part; appointments of and reimbursements to investiga- (6) Publicize to Board employees and applicants for tors, whether from the private sector or otherwise, employment and post at all times on official Board which exceeds the EEO Programs Director's probulletin boards: curement authority; (i) The names, business telephone numbers, bus- (12) Assure that individual complaints are fairly and iness addresses and the equal employment oppor- thoroughly investigated and that final decisions of tunity responsibilities of the Staff Director for the Board are issued in a timely manner in accor- Management, the EEO Programs Director, the dance with this part; Federal Women's Program Manager, the His- (13) Dismiss a complaint, or a portion of a companic Program Coordinator, and the Disabled plaint, pursuant to sections 268.206 and 268.305(c) Persons Program Coordinator; of this part; (ii) The names, business telephone numbers, bus- (14) Suspend the complaint process when appropriiness addresses of EEO Counselors, the segments ate for any matter that is before the Merit Systems of the Board for which they are responsible, the Protection Board for a determination; and availability of EEO Counselors to counsel an (15) Make recommendations based upon investigaemployee or applicant for employment who be- tive reports, hearings and EEOC decisions which lieves that he or she has been discriminated require the Board's final decision pursuant to secagainst because of race, color, religion, sex, na- tion 268.209 of this part. tional origin, age, or physical or mental disability, (d) EEO Counselors. The EEO Counselor(s) are apand the requirement that an employee or applicant pointed by the EEO Programs Director. EEO Counfor employment must consult an EEO Counselor selors shall carry out the functions set forth in section as provided by sections 268.204 and 268.305(a) of 268.204 of this part. this part; and (e) Federal Women's Program Manager. The EEO (iii) The time limits for contacting EEO Counse- Programs Director shall appoint a Federal Women's lors; Program Manager. The Federal Women's Program (7) Provide to each employee annually (and the Manager shall perform the following functions: Advise Division of Human Resources Management shall the Board of Governors, the Administrative Governor, provide to each applicant for employment) a copy of the Staff Director for Management and the EEO Proa notice summarizing the general purposes of this grams Director on matters affecting, and administer part and specifying where copies of this part can be the Board's program with respect to, the employment obtained. The EEO Programs Director shall ensure and advancement of women. that copies of the summary of this part are posted in (f) Hispanic Program Coordinator. The EEO Propermanent locations in all Board facilities. The EEO grams Director shall appoint a Hispanic Program Co- Programs Director shall, on the request of any ordinator. The Hispanic Program Coordinator shall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 Federal Reserve Bulletin • May 1994 perform the following functions: Advise the Board of deprive or tend to deprive any person of employ- Governors, the Administrative Governor, the Staff ment opportunities or otherwise adversely affect the Director for Management and the EEO Programs person's status as an employee. Director on matters affecting, and administer the (b) (1) The Board, on the basis of a person's age, shall Board's program with respect to, the employment and not: advancement of Hispanics. (i) Fail or refuse to hire or discharge any person or (g) Disabled Persons Program Coordinator. The EEO otherwise discriminate against any person with Programs Director shall appoint a Disabled Persons respect to his or her compensation, terms, condi- Program Coordinator. The Disabled Persons Program tions or privileges of employment; Coordinator shall perform the following functions: (ii) Limit, segregate or classify its employees or Advise the Board of Governors, the Administrative applicants for employment in any way which Governor, the Staff Director for Management and the would deprive or tend to deprive any person of EEO Programs Director on matters affecting, and employment opportunities or otherwise adversely administer the Board's program with respect to, the affect the person's status as an employee or employment and advancement of individuals with a applicant for employment; disability. (iii) Reduce the wage rate of any employee in order to comply with paragraph (b) of this section; Subpart B—Board Program To Promote Equal (iv) Discriminate against any employee or appli- Opportunity cant for employment because such employee or applicant for employment has opposed any prac- Section 268.201—General policy for equal tice forbidden under paragraph (b) of this section, opportunity. or because such employee or applicant for employment has made a charge, testified, assisted or (a) It is the policy of the Board to provide equal participated in any manner in any investigation, opportunity in employment for all persons, to prohibit proceeding or litigation involving paragraph (b) of discrimination in employment because of race, color, this section or the ADEA; or religion, sex, national origin, age or disability, and to (v) Print or publish, or cause to be printed or promote the full realization of equal opportunity in published, any notice or advertisement relating to employment through a continuing affirmative program. employment by the Board indicating any prefer- (b) It is also the policy of the Board to ensure equal ence, limitation, specification or discrimination. opportunity for individuals with a disability in Board (2) An aggrieved person filing a complaint of disprograms and activities consistent with Section 504 of crimination on the basis of age under this subpart B the Rehabilitation Act (29 U.S.C. 794) and to provide or section 268.305 of this part must have been at equal opportunity for all persons in accordance with least 40 years of age at the time the alleged discrimthe Immigration Reform and Control Act of 1986, as ination occurred. amended (8 U.S.C. 1324a). (c) The Board shall not discriminate among employees (c) No person shall be subject to retaliation for oppos- on the basis of sex by paying wages to employees at a ing any practice prohibited by this part, or for partic- rate less than the rate at which it pays wages to ipating in any stage of administrative or judicial pro- employees of the opposite sex for equal work on jobs ceedings under this part. The practices prohibited by the performance of which require equal skill, effort this part include those made unlawful by Title VII, the and responsibility, and which are performed under ADEA, the Equal Pay Act (29 U.S.C. 206(d)) and the similar conditions, except where such payment is Rehabilitation Act (29 U.S.C. 791). made pursuant to: (1) A seniority system; Section 268.202—Board program for equal (2) A merit system; employment opportunity. (3) A system which measures earnings by quantity or quality or production; or (a) The Board, on the basis of a person's race, color, (4) A differential based on any factor other than sex religion, sex or national origin, shall not: or otherwise not prohibited by this part. (1) Fail or refuse to hire or discharge any person, or (d) The Board shall not discriminate against qualified otherwise discriminate against any person with re- individuals with a disability who are physically or spect to his or her compensation, terms, conditions mentally disabled. The Board's program regarding or privileges of employment; or individuals with a disability in employment is fully (2) Limit, segregate, or classify its employees or described in section 268.303 of this part. applicants for employment in any way which would (e) The Board has established, maintains and carries Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 417 out a continuing affirmative program designed to pro- employees to enhance their skills through on-the-job mote equal opportunity and to identify and eliminate training, work-study programs and other training discriminatory practices and policies. In support of its measures so that they may perform at their highest program, the Board: potential and advance in accordance with their (1) Provides sufficient resources to administer its abilities; equal opportunity program to ensure efficient and (13) Informs its employees and applicants for emsuccessful operation; ployment of the Board's affirmative equal opportu- (2) Provides for the prompt, fair and impartial pro- nity policy and program, and enlists the cooperation cessing of complaints in accordance with this part, of Board employees and other proper persons; and and consistent with guidance proffered by the Com- (14) Participates at the community level with other mission; employers, with schools and universities and with (3) Conducts a continuing campaign to eradicate other public and private groups in cooperative acevery form of prejudice or discrimination from the tion to improve employment opportunities and com- Board's personnel policies, practices and working munity conditions that affect employ ability. conditions; (f) In order to implement its program, the Board: (4) Communicates the Board's equal employment (1) Develops the plans, procedures and regulations opportunity policy and program, and its employ- necessary to carry out its program; ment needs to all sources of job candidates without (2) Appraises its human resources management opregard to race, color, religion, sex, national origin, erations at regular intervals to assure their conforage, or physical or mental disability, and solicits mity with the Board's program and this part, contheir recruitment assistance on a continuing basis; sistent with guidance proffered by the Commission; (5) Reviews, evaluates and controls managerial and (3) Assigns equal employment opportunity responsupervisory performance in such a manner as to sibilities as appropriate to the Administrative Govensure a continuing affirmative application and vig- ernor and the Staff Director for Management, and orous enforcement of the policy of equal employ- designates an EEO Programs Director, EEO Counment opportunity, and provides orientation, training selors, a Federal Women's Program Manager, a and advice to managers and supervisors to assure Hispanic Program Coordinator and a Disabled Pertheir understanding and implementation of the sons Program Coordinator, and clerical and admin- Board's equal employment opportunity policy and istrative support, to carry out the functions of this program; part in all divisions and offices at the Board; (6) Takes appropriate disciplinary action against (4) Makes written materials available to all employemployees who engage in discriminatory practices; ees and applicants for employment informing them (7) Makes reasonable accommodation to the reli- of the variety of equal employment opportunity gious needs of employees and applicants for em- programs, and administrative and judicial remedial ployment when those accommodations can be made procedures available to them, and prominently posts without undue hardship on the operations of the such written materials in its human resource man- Board; agement and EEO offices, and throughout the work- (8) Makes reasonable accommodation to the known place; physical or mental limitations of qualified applicants (5) Ensures that full cooperation is provided by all and employees with disabilities unless the accom- Board employees to EEO Counselors, Board equal modation would impose an undue hardship on the employment opportunity personnel and to investioperations of the Board; gators in the processing and resolution of pre-com- (9) Reassigns, in accordance with section 268.303(f) plaint matters and complaints filed with the Board, of this part, nonprobationary employees who de- and that cooperation is provided to the Commission velop physical or mental limitations that prevent in connection with review of Board decisions, including granting the Commission routine access to them from performing the essential functions of relevant records of the Board as appropriate and their positions even with reasonable accommodaconsistent with applicable law, regulations and poltion; icies of the Board; and (10) Provides recognition to employees, supervisors, managers and units demonstrating superior (6) Publicizes to all employees and posts at all times accomplishment in equal employment opportunity; the names, business telephone numbers and busi- (11) Has established a system for periodically eval- ness addresses of the EEO Counselors, a notice of uating the effectiveness of the Board's overall equal the time limits and necessity of contacting an EEO employment opportunity effort; Counselor before filing a complaint, and the tele- (12) Provides the maximum feasible opportunity to phone numbers and addresses of the Staff Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 Federal Reserve Bulletin • May 1994 for Management, EEO Programs Director, Federal file a notice of intent to sue pursuant to section Women's Program Manager, Hispanic Program Co- 268.301 (a) of this part and to file a lawsuit alleging a ordinator and Disabled Persons Program Coordina- violation of the ADEA instead of an administrative tor. complaint of age discrimination under this part, the duty to mitigate damages, administrative and court Section 268.203—Complaints of discrimination time frames, and that only the matter(s) raised in covered under this part. pre-complaint counseling (or issues like or related to issues raised in pre-complaint counseling) may be (a) Individual and class complaints of employment alleged in a subsequent complaint filed with the discrimination and retaliation prohibited by section Board. EEO Counselors must advise individuals of 268.202(a) (discrimination on the basis of race, color, their duty to keep the Board informed of their current religion, sex and national origin), section 268.202(b) address, to serve copies of requests for review by the (discrimination on the basis of age when the aggrieved Commission on the Board, and to keep the Commisperson is at least 40 years of age), section 268.303(a) sion informed of their current address in connection (discrimination on the basis of a disability), or section with any review of a Board action. The notice 268.202(c) (sex-based wage discrimination) of this part required by paragraphs (d) and (e) of this section shall be processed in accordance with this part. Com- shall include a notice of the right to file a class plaints alleging retaliation prohibited under this part complaint. If the aggrieved person informs an EEO are considered to be complaints of discrimination for Counselor that he or she wishes to file a class purposes of this part. complaint, the EEO Counselor shall explain the class (b) Except as set forth in section 268.304 and in complaint procedures and the responsibilities of the subpart G of this part, this part applies to all Board agent of the class. employees and applicants for employment at the (c) EEO Counselors shall conduct counseling activi- Board, and to all Board personnel policies or practices ties in accordance with instructions promulgated by affecting Board employees or applicants for employ- the EEO Programs Director, which shall be consistent ment at the Board. with the counseling guidelines contained in the Commission's "EEO Management Directives For 29 Section 268.204—Pre-complaint processing. C.F.R. Part 1614". When advised that a complaint has been filed by an aggrieved person, the EEO Counselor (a) Aggrieved persons who believe they have been shall submit a written report within 15 calendar days to discriminated against on the basis of race, color, the EEO Programs Director and to the aggrieved religion, sex, national origin, age or disability must person concerning the issues discussed and actions consult an EEO Counselor prior to filing a complaint in taken during counseling. order to try to informally resolve the matter. (d) Unless the aggrieved person agrees to a longer (1) An aggrieved person must initiate contact with counseling period under paragraph (e) of this section, an EEO Counselor within 45 days of the date of the the EEO Counselor shall conduct the final interview matter alleged to be discriminatory or, in the case of with the aggrieved person within 30 days of the date a personnel action, within 45 days of the date that the aggrieved person brought the matter to the EEO the action was communicated to the aggrieved per- Counselor's attention. If the matter has not been son. resolved, the aggrieved person shall be informed in (2) The Board shall extend the 45-day time limit in writing by the EEO Counselor, not later than the 30th paragraph (a)(1) of this section when the individual day after contacting the EEO Counselor, of the right to shows that he or she was not notified of the time file a discrimination complaint with the Board. This limits and was not otherwise aware of them, that he notice shall inform the complainant of the right to file or she did not know and reasonably should not have a discrimination complaint within 15 calendar days of known that the discriminatory matter or personnel receipt of the notice, of the appropriate official with action occurred, that despite due diligence he or she whom to file a complaint and of the complainant's duty was prevented by circumstances beyond his or her to assure that the EEO Programs Director is informed control from contacting an EEO Counselor within immediately if the complainant retains counsel or a the time limits, or for other reasons considered representative. sufficient by the Board. (e) Prior to the end of the 30-day period, the aggrieved (b) At the initial counseling session, EEO Counselors person may agree in writing with the Board to postmust advise individuals in writing of their rights and pone the final interview and extend the counseling responsibilities, including the right to request a hear- period for an additional period of no more than 60 ing after the investigation by the Board, the right to days. If the matter has not been resolved before the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 419 conclusion of the agreed extension, the notice de- that is pending before or has been decided by the scribed in paragraph (d) of this section shall be issued. Board or the Commission; (f) In the event the aggrieved person believes that (2) That fails to comply with the applicable time he/she has been discriminated against and agrees to limits contained in sections 268.204, 268.205(b) and participate in an established Board alternative dispute 268.305(b) of this part, unless the Board extends the resolution procedure, the pre-complaint processing time limits in accordance with section 268.604(c) of period of this section will be 90 days. If the matter has this part, or that raises a matter that has not been not been resolved before the 90th day, the notice brought to the attention of an EEO Counselor and is described in paragraph (d) of this section shall then be not like or related to a matter that has been brought issued. to the attention of an EEO Counselor; (g) The EEO Counselor shall not attempt in any way to (3) That is the basis of a pending civil action in a restrain the aggrieved person from filing a complaint. United States District Court in which the complain- The EEO Counselor shall not reveal the identity of an ant is a party, provided that at least 180 days have aggrieved person who consulted the EEO Counselor, passed since the filing of the administrative comexcept when authorized to do so by the aggrieved plaint, or that was the basis of a civil action decided person, or until the Board has received a discrimina- by a United States District Court in which the tion complaint under this part from that person involv- complainant was a party; ing the same matter. (4) That is moot or alleges that a proposal to take a personnel action, or other preliminary step to taking Section 268.205—Individual complaints. a personnel action, is discriminatory; (5) Where the complainant cannot be located, provided that reasonable efforts have been made to (a) A complaint alleging that the Board discriminated locate the complainant and the complainant has not against the complainant must be filed with the Board. responded within 15 calendar days to a notice of (b) A complaint must be filed within 15 calendar days proposed dismissal sent to his or her last known of receipt of the notice required by sections address; 268.204(d), (e) or (f) of this part. (6) Where the Board has provided the complainant (c) A complaint must contain a signed statement from with a written request to provide relevant informathe person claiming to be aggrieved or that person's tion or otherwise proceed with the complaint, and attorney. This statement must be sufficiently precise to the complainant has failed to respond to the request identify the aggrieved person and to describe generally within 15 calendar days of its receipt or the comthe action(s) or practice(s) that form the basis of the plainant's response does not address the Board's complaint. The complaint must also contain a telerequest, provided that the request included a notice phone number and address where the complainant or of the proposed dismissal. Instead of dismissing for the complainant's representative can be contacted. failure to cooperate, the complaint may be adjudi- (d) The EEO Programs Director shall acknowledge cated if sufficient information for that purpose is receipt of a complaint in writing and inform the comavailable; or plainant of the date on which the complaint was filed. (7) If, prior to the issuance of the notice required by Such acknowledgement shall also advise the complainsection 268.207(f) of this part, the complainant reant that: fuses within 30 days of receipt of an offer of settle- (1) The complainant has the right to file a request for ment to accept the Board's offer of full relief conreview with the Commission with regard to the taining a certification from the Board's Staff Board's final decision or dismissal of all or a portion Director for Management, the General Counsel or a of a complaint ; and designee reporting directly to the Staff Director for (2) The Board is required to conduct a complete and Management or General Counsel (after consulting fair investigation of the complaint within 180 days of with the EEO Programs Director) that the offer the filing of the complaint unless the parties agree in constitutes full relief, provided that the offer gave writing to extend the period. notice that failure to accept would result in dismissal of the complaint. An offer of full relief under this Section 268.206—Dismissals of complaints. paragraph (a)(7) is the appropriate relief in section 268.501 of this part. (a) The Board shall dismiss a complaint or a portion of (b) The Board shall inform the complainant of the right a complaint: to file a request for review with the Commission with (1) That fails to state a claim under sections 268.203 regard to the dismissal of the individual complaint and 268.205(c) of this part, or states the same claim pursuant to section 268.401 of this part, or to file a civil Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 Federal Reserve Bulletin • May 1994 action. A copy of EEOC Form 573, Notice of Appeal/ (v) Take such other actions as it deems appropri- Petition, shall be attached to the Board's decision to ate. dismiss an individual complaint under this section. (4) If documentary or testimonial evidence is needed by the investigator, and such documentary evidence is known to be contained in the files of another Section 268.207—Investigation of complaints. federal agency, or the testimony of an employee of another federal agency is needed, the EEO Pro- (a) The investigation of individual complaints shall be grams Director shall, if necessary, contact the Comconducted by an investigator appointed by the EEO mission for assistance in obtaining such documen- Programs Director. tary or testimonial evidence. (b) Consistent with guidance proffered by the Commis- (d) The investigation shall be conducted by an invession, the Board, through the EEO Programs Director, tigator with appropriate security clearances. shall develop a complete and impartial factual record (e) The Board shall complete its investigation within upon which to make findings on the matters raised by 180 days of the date of the filing of an individual the written complaint. The investigator may use an complaint or within the time period contained in the exchange of letters or memoranda, interrogatories, determination of the Commission on review of a investigations, fact-finding conferences or any other dismissal pursuant to section 268.206 of this part. By fact-finding methods that efficiently and thoroughly written agreement within those time periods, the comaddress the matters at issue. The EEO Programs plainant and the Board may voluntarily extend the Director may incorporate alternative dispute resolu- time period for not more than an additional 90 days. tion techniques into the investigation in order to pro- The Board may unilaterally extend the time period or mote early resolution of complaints. any period of extension for not more than 30 days (c) The procedures in paragraphs (c)(1) through (4) of where it must sanitize a complaint file that may contain this section apply to the investigation of complaints: confidential information of the Board under 12 C.F.R. (1) The complainant, the Board and any employee of Part 261, or other privileged information of the Board, the Board shall produce such documentary and provided the Board notifies the complainant of the testimonial evidence as the investigator deems nec- extension. essary, consistent with applicable laws, regulations (f) Within 180 days from the filing of the complaint, and policies of the Board. within the time period contained in a determination of (2) The investigator may administer oaths. State- the Commission's Office of Federal Operations on ments of witnesses shall be made under oath or review of a dismissal, or within any period of extenaffirmation or, alternatively, by written statement sion provided for in paragraph (e) of this section, the under penalty of perjury. Board shall notify the complainant that the investiga- (3) When the complainant, or the Board or its tion has been completed, shall provide the complainemployees, fail without good cause shown to re- ant with a copy of the investigative file, and shall spond fully and in timely fashion to requests for notify the complainant that, within 30 days of the documents, records, comparative data, statistics, receipt of the investigative file, the complainant has affidavits or the attendance of witness(es), the inves- the right to request a hearing before an administrative tigator may note in the investigative record that the judge from the Commission or may receive an imme- Board when rendering a final decision should, or the diate final decision pursuant to section 268.209 of this Commission on review may, in appropriate circum- part from the Board. In the absence of the required stances: notice, the complainant may request a hearing under (i) Draw an adverse inference that the requested section 268.208 of this part at any time after 180 days information, or the testimony of the requested has elapsed from the filing of the complaint. witness, would have reflected unfavorably on the party refusing to provide the requested informa- Section 268.208—Hearings. tion; (ii) Consider the matters to which the requested (a) Requests. When a complainant requests a hearing, information or testimony pertains to be estab- the EEO Programs Director shall request the Commislished in favor of the opposing party; sion to appoint an administrative judge to conduct a (iii) Exclude other evidence offered by the party hearing in accordance with this section. Any hearing failing to produce the requested information or will be conducted by an administrative judge or hearwitness; ing examiner with appropriate security clearances. (iv) Issue a decision fully or partially in favor of Where the administrative judge determines that the the opposing party; or complainant is raising or intends to pursue issues like Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 421 or related to those raised in the complaint, but which graphs (d)(1) through (3) of this section apply to the Board has not had an opportunity to address, the hearings of complaints: administrative judge shall remand any such issue for (1) The complainant, the Board and any employee of counseling in accordance with section 268.204 of this the Board shall produce such documentary and part or for such other processing as may be ordered by testimonial evidence as the administrative judge the administrative judge. deems necessary, consistent with applicable laws, (b) Discovery. The administrative judge shall notify regulations and policies of the Board. If documenthe parties of the right to seek discovery prior to the tary or testimonial evidence is needed for the hearhearing and may issue such discovery orders as are ing, and such documentary evidence is known to be appropriate. Unless the parties agree in writing con- contained in the files of another federal agency, or if cerning the methods and scope of discovery, the party the testimony of an employee of another federal seeking discovery shall request authorization from the agency is needed, then the administrative judge may administrative judge prior to commencing discovery. seek assistance from appropriate sources in obtain- Both parties are entitled to reasonable development of ing such documentary or testimonial evidence for evidence on matters relevant to the issues raised in the the hearing. complaint, but the administrative judge may reason- (2) Administrative judges are authorized to adminably limit the quantity and timing of discovery. Evi- ister oaths. Statements of witnesses shall be made dence may be developed through interrogatories, dep- under oath or affirmation or, alternatively, by writositions, and requests for admissions, stipulations or ten statement under penalty of perjury. production of documents. It shall be grounds for (3) When the complainant, or the Board or its objection to producing evidence that the information employees fail without good cause shown to resought by either party is irrelevant, overburdensome, spond fully and in timely fashion to requests for repetitious, privileged, or that production would be documents, records, comparative data, statistics, unlawful. affidavits, or the attendance of witness(es), the (c) Conduct of hearing. The Board shall provide for administrative judge may, in appropriate circumthe attendance at a hearing of all Board employees stances: approved as witnesses by an administrative judge. (i) Draw an adverse inference that the requested Attendance at hearings will be limited to persons information, or the testimony of the requested determined by the administrative judge to have direct witness, would have reflected unfavorably on the knowledge relating to the complaint. Hearings are part party refusing to provide the requested informaof the investigative process and are thus closed to the tion; public. The administrative judge shall have the power (ii) Consider the matters to which the requested to regulate the conduct of a hearing, limit the number information or testimony pertains to be estabof witnesses where testimony would be repetitious, lished in favor of the opposing party; and exclude any person from the hearing for contuma- (iii) Exclude other evidence offered by the party cious conduct or misbehavior that obstructs the hear- failing to produce the requested information or ing. The administrative judge shall receive into evi- witness; dence information or documents relevant to the (iv) Issue a finding fully or partially in favor of the complaint. Rules of evidence shall not be applied opposing party ; or strictly, but the administrative judge shall exclude (v) Take such other actions as appropriate. irrelevant or repetitious evidence. The administrative (e) Findings and conclusions without hearing. (1) If a judge or the Commission may refer to the Disciplinary party believes that some or all material facts are not Committee of the appropriate Bar Association any in genuine dispute and there is no genuine issue as to attorney or, upon reasonable notice and an opportu- credibility, the party may, at least 15 calendar days nity to be heard, suspend or disqualify from represent- prior to the date of the hearing or at such earlier time ing complainants or agencies in hearings raising claims as required by the administrative judge, file a stateof discrimination any representative who refuses to ment with the administrative judge prior to the follow the orders of an administrative judge, or who hearing setting forth the fact or facts and referring to otherwise engages in improper conduct. The Board in the parts of the record relied on to support the such circumstances may take whatever action it deems statement. The statement must demonstrate that appropriate to suspend or disqualify any such attorney there is no genuine issue as to any such material or representative from appearing or practicing before fact. The party shall serve the statement on the the Board. opposing party. (d) Evidentiary procedures. The procedures in para- (2) The opposing party may file an opposition within 15 calendar days of receipt of the statement in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 Federal Reserve Bulletin • May 1994 paragraph (e)(1) of this section. The opposition Section 268.209—Final decisions. may refer to the record in the case to rebut the statement that a fact is not in dispute or may file an (a) The EEO Programs Director shall notify the Board affidavit stating that the party cannot, for reasons of Governors when a complaint is ripe for decision stated, present facts to oppose the request. After under this section. At the request of any member of considering the submissions, the administrative the Board of Governors made within 3 business days judge may order that discovery be permitted on the of such notice, the Board of Governors shall make the fact or facts involved, limit the hearing to the decision on the complaint. If no such request is made, issues remaining in dispute, issue findings and the Administrative Governor, or the Staff Director for conclusions without a hearing or make such other Management if he or she is delegated the authority to ruling as is appropriate. do so under section 268.103(a)(2) of this part, shall (3) If the administrative judge determines upon his make the decision on the complaint. or her own initiative that some or all facts are not (b) The Board shall issue a final decision: in genuine dispute, he or she may, after giving (1) Within 60 days of receiving notification that a notice to the parties and providing them an oppor- complainant has requested an immediate decision in tunity to respond in writing within 15 calendar accordance with section 268.207(f) of this part; days, issue an order limiting the scope of the (2) Within 60 days of the end of the 30-day period for hearing or issue findings and conclusions without the complainant to request a hearing or an immediholding a hearing. ate final decision where the complainant has not (£) Record of hearing. The hearing shall be recorded requested either a hearing or a final decision as and the Board shall arrange and pay for verbatim provided by section 268.207(f) of this part; transcripts. All documents submitted to, and accepted (3) Within 60 days of receiving the findings and by, the administrative judge at the hearing shall be conclusions of an administrative judge under section made part of the record of the hearing. If the Board 268.208(g) of this part; submits a document that is accepted, it shall furnish a (4) Within 30 days of receiving the written recomcopy of the document to the complainant. If the mendation of an administrative judge to accept or complainant submits a document that is accepted, the reject the class complaint pursuant to section administrative judge shall make the document avail- 268.305(c)(7) of this part; able to the Board's representative for reproduction, (5) If it decides to vacate an agreement of resolution (g) Findings and conclusions. Unless the administra- upon the selection of a member of the class pursuant tive judge makes a written determination that good to section 268.305(f)(4) of this part; cause exists for extending the time for issuing find- (6) Within 60 days of receiving findings and recomings of fact and conclusions of law, within 180 days mendations of an administrative judge following a of a request for a hearing being received by the class action hearing pursuant to the procedures Commission, an administrative judge shall issue find- stated under section 268.305(i) of this part; ings of fact and conclusions of law on the merits of (7) Within 90 days of receipt of a written claim by a the complaint, and shall order appropriate relief class member pursuant to section 268.305(k)(3) of where discrimination is found with regard to the this part; or matter that gave rise to the complaint. The adminis- (8) Within 30 days of receiving the EEOC decision trative judge shall send copies of the entire record, pursuant to section 268.405(c) of this part. including the transcript, and the findings and conclu- (c) The final decision of the Board shall consist of sions to the parties by certified mail, return receipt findings by the Board on the merits of each issue in the requested. Within 60 days of receipt of the findings complaint, or following review by the Commission, and conclusions, the Board may reject or modify the the reason or reasons for acceptance, modification or findings and conclusions or the relief ordered by the rejection of each finding in an EEOC decision. When administrative judge and issue a final decision in discrimination is found and indicated in the final accordance with section 268.209 of this part. If the decision, appropriate remedies and relief in accor- Board does not, within 60 days of receipt of the dance with subpart E of this part will be addressed in findings and conclusions, accept, reject or modify the the final decision. findings and conclusions of the administrative judge, (d) The final decision shall contain information regardthen the findings and conclusions of the administra- ing the right to file a request for review with the tive judge and the relief ordered shall become the Commission of final decisions pursuant to paragraphs final decision of the Board and the Board shall notify (b)(1) through (7) of this section and the procedures for the complainant of the final decision in accordance filing a request for review with the Commission, the with section 268.209 of this part. right to file a civil action in a United States District Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 423 Court, including the name of the proper defendant in Section 268.302—Equal Pay Act. any such lawsuit, and the applicable time limits for reviews and lawsuits. A copy of EEOC Form 573, (a) Any employee who believes he or she has received Notice of Appeal/Petition, shall be attached to the final unequal pay due to discrimination based on sex may decision pursuant to paragraphs (b)(1) through (7) of seek recovery of withheld wages by filing a complaint this section. of discrimination under subpart B of this part, if a complaint of individual discrimination, or under sec- Subpart C—Provisions Applicable to Particular tion 268.305 of this part if a class action, except that Complaints civil actions shall be filed pursuant to paragraph (b) of this section. Section 268.301—Age Discrimination in (b) A complainant, agent of the class or individual Employment Act. class claimant under this section may file a civil action against the Board pursuant to section 268.506 of this (a) As an alterative to filing a complaint of discrimina- part in a United States District Court should the tion on the basis of age under this part, an aggrieved complainant, agent of the class or individual class person may file a civil action in a United States District claimant believe he or she has been denied equal pay. Court against the Board of Governors. The aggrieved (c) The Board shall preserve any records that are made person must give notice of his or her intent to file such in the regular course of business which relate to the action with the Commission, with a copy to the payment of wages, wage rates, job evaluations, job Board's EEO Programs Director, not less than 30 days descriptions, merit systems, seniority systems, deprior to filing such civil action. The notice must be filed scription of practices, or other matters which describe in writing with the Commission: Federal Sector Pro- or explain the basis for payment of any wage differengrams, Equal Employment Opportunity Commission, tial to employees of the opposite sex, and which may 1801 L Street, NW, Washington, DC 20507, within 180 be pertinent to the determination of whether such days of the occurrence of the alleged unlawful prac- differential is based on a factor other than sex. Such tice. records are to be kept for at least 3 years. (b) The Commission may exempt a position from the (d) Wages withheld in violation of section 268.202(c) of provisions of the ADEA if the Commission establishes this part have the status of unpaid minimum wage or a maximum age requirement for the position on the unpaid overtime compensation. basis of a determination that age is a bona fide occupational qualification necessary to the performance of Section 268.303—Rehabilitation Act. the duties of the position. The Board may adopt a Commission exemption for inclusion under this sec- (a) General policy. The Board shall give full considertion. ation to the hiring, placement and advancement of (c) When an aggrieved person has filed a complaint qualified individuals with a disability who are physiunder section 268.205 or section 268.305 of this part cally or mentally disabled. The Board shall be a model alleging age discrimination, administrative remedies employer of individuals with a disability. The Board will be considered to be exhausted for purposes of shall not discriminate against individuals with a disfiling, a civil action: ability who are physically or mentally disabled. (1) 180 days after the filing of an individual com- (b) Reasonable accommodation. (1) The Board shall plaint if the Board has not issued a final decision and make reasonable accommodation to the known the complainant has not filed a request for review by physical or mental limitations of an employee or the Commission, or 180 days after the filing of a applicant for employment who is a qualified individclass complaint if the Board has not issued a final ual with a disability unless the Board can demondecision; strate that the accommodation would impose an (2) After the issuance of a final decision under undue hardship on its operations. section 268.209 of this part on an individual or class (2) Reasonable accommodation may include, but complaint if the individual has not filed a request for shall not be limited to: review with the Commission; or (i) Making facilities readily accessible to and (3) After the issuance of a final decision under usable by individuals with a disability; and section 268.209(a)(8) following an EEOC decision (ii) Job restructuring, part-time or modified work under section 268.405 of this part, or 180 days after schedules, acquisition or modification of equipthe filing of a request for review under subpart D of ment or devices, appropriate adjustment or modthis part if the Commission has not issued an EEOC ification of examinations, the provision of readers decision. and interpreters, and other similar actions. 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424 Federal Reserve Bulletin • May 1994 (3) In determining whether, pursuant to paragraph positions that do not routinely require medical (b)(1) of this section, an accommodation would examination indicates a condition for which furimpose an undue hardship on the operation of the ther examination is required because of the job- Board, factors to be considered include: related nature of the condition; and (i) The overall size of the Board's operations with (ii) The results of such an examination are used respect to the number of employees, number and only in accordance with the requirements of this type of facilities and size of budget; part. (ii) The type of Board operation, including the (3) Nothing in this section shall be construed to composition and structure of the Board's work prohibit the gathering of pre-employment medical force; and information for the purpose of hiring individuals (iii) The nature and the cost of the accommoda- with a disability. tion. (4) To enable and evaluate affirmative action to hire, (c) Employment criteria. (1) The Board shall not make place or advance individuals with a disability, the use of any employment test or other selection crite- Board may invite employees and applicants for rion that screens out or tends to screen out qualified employment to indicate whether and to what extent individuals with a disability or any class of individ- they are disabled, if: uals with a disability unless: (i) The Board states clearly on any written ques- (i) The test score or other selection criterion is tionnaire used for this purpose or makes clear job-related for the position in question and con- orally if no written questionnaire is used, that the sistent with business necessity; and information requested is intended for use solely in (ii) There are no available alterative job-related conjunction with affirmative action; and tests that do not screen out or tend to screen out (ii) The Board states clearly that the information is as many individuals with a disability. being requested on a voluntary basis, that refusal (2) The Board shall select and administer tests to provide it will not subject the employee or concerning employment so as to ensure that, when applicant for employment to any adverse treatadministered to an employee or applicant for em- ment, and that it will be used only in accordance ployment who has a disability that impairs sensory, with this part. manual, or speaking skills, the test results accu- (5) Information obtained in accordance with this rately reflect the employee's or applicant's ability to section as to the medical condition or history of the perform the position or type of position in question employee or applicant for employment shall be kept rather than reflecting the employee's or applicant's confidential except that: impaired sensory, manual, or speaking skill (except (i) Managers, selecting officials, and others inwhere those skills are the factors that the test volved in the selection process or responsible for purports to measure). affirmative action may be informed that the em- (d) Pre-employment inquiries. (1) Except as provided ployee or applicant for employment is an individin paragraphs (d)(2) and (3) of this section, the Board ual with a disability; shall not conduct a pre-employment medical exam- (ii) Supervisors and managers may be informed ination and shall not make pre-employment inquiry regarding necessary accommodations; of an applicant as to whether the applicant is an (iii) First aid and safety personnel may be inindividual with a disability or as to the nature or formed, where appropriate, if the condition might severity of a disability. The Board may, however, require emergency treatment; make pre-employment inquiry into an applicant's (iv) Government officials investigating compliance ability to meet the essential functions of the job, or with laws, regulations, and instructions relevant the medical qualification requirements if applicable, to equal employment opportunity and affirmative with or without reasonable accommodation, of the action for individuals with a disability shall be position in question, i.e., the minimum abilities provided information upon request; and necessary for safe and efficient performance of the (v) Statistics generated from information obtained duties of the position in question. may be used to manage, evaluate, and report on (2) Nothing in this section shall prohibit the Board equal employment opportunity and affirmative from conditioning an offer of employment on the action programs. results of a medical examination conducted prior to (e) Physical access to buildings. (1) The Board shall the employee's entrance on duty, provided that: not discriminate against employees or applicants for (i) All entering employees are subjected to such an employment who are qualified individuals with a examination regardless of disability or when the disability due to the inaccessibility of its facility. pre-employment medical questionnaire used for (2) It shall be the policy of the Board to comply with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 425 the provisions of the Rehabilitation Act, the Archi- tion program and is no longer engaging in such tectural Barriers Act of 1968 (42 U.S.C. 4151 et seq.) use; or and the Americans With Disabilities Act of 1990 (C) Is erroneously regarded as engaging in such (42 U.S.C. 12183 and 12204). use, but is not engaging in such use. (f) Reassignment. When a nonprobationary em- (ii) Except that the Board may adopt and adminployee becomes unable to perform the essential ister reasonable policies or procedures, including functions of his or her position even with reasonable but not limited to drug testing, designed to ensure accommodation due to a disability, the Board shall that an individual described in paragraphs (g)(l)(i) offer to reassign the individual to a funded vacant (A) and (B) of this section is no longer engaging in position at the same grade level, the essential func- the illegal use of drugs. tions of which the employee would be able to per- (2) Alcoholism. The term "individual with a disform with reasonable accommodation if necessary ability" does not include an employee who is an unless the reassignment would impose an undue alcoholic whose current use of alcohol prevents hardship on the operation of the Board. In the the employee from performing the duties of his or absence of a position at the same grade level, an offer her job, or whose employment by reason of such of reassignment to a vacant position at the highest current alcohol use, would constitute a direct available grade level below the employee's current threat to the property or safety of others. In this grade level shall be made, but availability of such a regard, alcoholics shall meet the same perforvacancy shall not affect the employee's entitlement, mance and conduct standards to which all other if any, to disability retirement pursuant to any retire- Board employees must satisfy, even if an unsatisment plan in which the employee is enrolled. If the factory performance is related to the alcoholism of Board has already posted a notice or announcement the employee. seeking applications for a specific vacant position at (3) Infectious and communicable diseases. If an the time the Board has determined that the nonpro- individual with a disability has one of the listed bationary employee is unable to perform the essen- diseases as determined by the Secretary of Health tial functions of his or her position even with reason- and Human Services under the Americans with able accommodation, then the Board does not have Disabilities Act (42 U.S.C. 12113 (d)(1)) and works an obligation under this section to offer to reassign in or applies for a position at the Board in food the individual to that position, but the Board shall handling, the Board will seek reasonable accomconsider the individual on an equal basis with those modation under paragraph (b) of this section to who applied for the position. eliminate the risk of transmitting the disease (g) Exclusion from definition of "individual with a through the handling of food. If the individual with disability": a disability is a nonprobationary employee and a (1) Illegal use of drugs, (i) The term "individual with reasonable accommodation cannot be made, the a disability" shall not include an individual who is provisions contained in paragraph (f) of this seccurrently engaging in the illegal use of drugs, tion shall apply. when the Board acts on the basis of such use. The term "drug" means a controlled substance, as Section 268.304—Employment of noncitizens. defined in Schedules I through V of Section 202 of the Controlled Substances Act (21 U.S.C. 812). The term "illegal use of drugs" means the use of (a) Definitions. The definitions contained in this paradrugs, the possession or distribution of which is graph (a) shall apply only to this section. unlawful under the Controlled Substances Act, (1) Intending citizen means a citizen or national of but does not include the use of a drug taken under the United States, or a noncitizen who: supervision by a licensed health care professional, (i) Is a protected individual as defined in 8 U.S.C. or other uses authorized by the Controlled Sub- 1324b(a)(3); and stances Act or other provisions of federal law. (ii) Has evidenced an intention to become a This exclusion, however, does not exclude an United States citizen. individual with a disability who: (2) Noncitizen means any person who is not a citizen (A) Has successfully completed a supervised of the United States. drug rehabilitation program and is no longer (3) Sensitive information means: engaging in the illegal use of drugs, or has (i) (A) Information that is classified for national otherwise been rehabilitated successfully and is security purposes under Executive Order No. no longer engaging in such use; 10450 (3 C.F.R., 1949-1953. Comp., p. 936), (B) Is participating in a supervised rehabilita- including any amendments or superseding or- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 Federal Reserve Bulletin • May 1994 ders that the President of the United States may Section 268.305—Class complaints. issue from time to time; (B) Information that consists of confidential (a) Pre-complaint processing. An employee or applisupervisory information of the Board, as de- cant for employment who wishes to file a class comfined in 12 C.F.R. 261.2(b); or plaint must seek counseling and be counseled in ac- (C) Information the disclosure or premature dis- cordance with the procedures under section 268.204 of closure of which to unauthorized persons may this part. be reasonably likely to impair the formulation or (b) Filing and presentation of a class complaint. (1) A implementation of monetary policy, or cause class complaint must be signed by the agent of the unnecessary or unwarranted disturbances in se- class or representative, and must identify the percurities or other financial markets, such that sonnel policy or practice adversely affecting the access to such information must be limited to class as well as the specific action or matter affecting persons who are loyal to the United States. the agent of the class. (ii) For purposes of paragraph (a)(3)(i)(C) of this (2) The complaint must be filed with the Board not section, information may not be deemed sensi- later than 15 calendar days after the agent of the tive information merely because it would be class receives a notice from the EEO Counselor of exempt from disclosure under the Freedom of the right to file a class complaint. Information Act (5 U.S.C. 552), but sensitive (3) The complaint shall be processed promptly by information must be information the unautho- the Board, and the parties shall cooperate and shall rized disclosure or premature disclosure of proceed at all times without undue delay. which may be reasonably likely to impair impor- (c) Acceptance or dismissal. (1) Within 30 days of the tant functions or operations of the Board. Board's receipt of a class complaint, the Board shall (4) Sensitive position means any position of employ- designate a representative who shall monitor the ment in which the employee will be required to have class complaint on behalf of the Board and who shall access to sensitive information. be one of the individuals referenced in section (b) Prohibitions —(1) Unauthorized aliens. The Board 268.202(e)(3) of this part, and forward the class shall not hire any person unless that person is able to complaint, along with a copy of the EEO Counsesatisfy the requirements of Section 101 of the Immi- lor's report and any other information pertaining to gration Reform and Control Act of 1986. timeliness or other relevant circumstances related to (2) Employment in sensitive positions. The Board the class complaint, to the Commission's Office of shall not hire any person to a sensitive position Federal Operations. The Commission shall assign unless such person is a citizen of the United States the class complaint to an administrative judge or or, if a noncitizen, is an intending citizen. complaints examiner who shall, if required, have a (3) Preference. Consistent with the Immigration proper security clearance. The administrative judge Reform and Control Act of 1986, and other applica- may require the agent of the class or the Board to ble law, applicants for employment at the Board submit additional information relevant to the comwho are citizens of the United States shall be plaint. preferred over equally qualified applicants who are (2) The administrative judge may recommend that not United States citizens. the Board dismiss the class complaint, or any por- (c) Exception. The prohibition of paragraph (b)(2) of tion, for any of the reasons listed in section 268.206 this section does not apply to hiring for positions for of this part, or because it does not meet the prereqwhich a security clearance is required under Execu- uisites of a class complaint under section 268.102(g) tive Order No. 10450, including any subsequent of this part. amendments or superseding orders that the President (3) If an allegation of discrimination in the class of the United States may issue from time to time, complaint is not included in the EEO Counselor's where the noncitizen either has or can obtain the report, the administrative judge shall afford the necessary security clearance. Any offer of employ- agent of the class 15 calendar days to state whether ment authorized by this paragraph (c) shall be con- the matter was discussed with the EEO Counselor tingent upon receipt of the required security clear- and, if not, explain why it was not discussed. If the ance in the manner prescribed by law. explanation is not satisfactory, the administrative (d) Applicability. This section applies to employment judge shall recommend that the Board dismiss the in all positions at the Board and to employment by allegation under section 268.206 of this part. If the Federal Reserve Banks of examiners who must be explanation is satisfactory, the administrative judge appointed, or selected and approved by the Board shall refer the allegation to the Board for further pursuant to 12 U.S.C. 325, 326, 338, or 625. counseling by an EEO Counselor with the agent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 427 the class. After counseling, the allegation shall be class complaint pursuant to section 268.209(b)(4) of consolidated with the class complaint. this part. (4) If an allegation of discrimination in the class (d) Notification. (1) Within 15 calendar days of acceptcomplaint lacks specificity and detail, the administra- ing a class complaint, the Board shall use reasonable tive judge shall afford the agent of the class 15 means, such as delivery, mailing to last known calendar days to provide specific and detailed infor- address or distribution, to notify all class members mation. The administrative judge shall recommend of the acceptance of the class complaint. that the Board dismiss the class complaint if the agent (2) Such notice shall contain: of the class fails to provide such information within (i) The date of acceptance of the class complaint the specified time period. If the information provided by the Board; contains new allegations outside the scope of the (ii) A description of the issues accepted as part of complaint, the administrative judge shall advise the the class complaint; agent of the class how to proceed on an individual or (iii) An explanation of the binding nature of the class basis concerning these allegations. Board's dismissal, final decision or resolution of (5) The administrative judge shall recommend that the class complaint on class members; and the Board extend the time limits for filing a class (iv) The name, address and telephone number of complaint and for consulting with an EEO Counse- the agent of the class or, if represented, the lor in accordance with the time limit extension representative. provisions contained in sections 268.204(a)(2) and (e) Obtaining evidence concerning the complaint. 268.604 of this part. (1) Upon the acceptance of a class complaint by the (6) When appropriate, the administrative judge may Board, the administrative judge shall notify the recommend that a class be divided into subclasses agent of the class and the Board's representative of and that each subclass be treated as a class, and the the time period that will be allowed both parties to provisions of this section shall then be construed prepare their case. This time period will include at and applied accordingly. least 60 days and may be extended by the adminis- (7) The administrative judge's written recommenda- trative judge upon the request of either party. Both tion to the Board on whether to accept or dismiss a parties are entitled to reasonable development of class complaint and the complaint file shall be evidence on matters relevant to the issues raised in transmitted to the Board, and notification of that the class complaint. Evidence may be developed transmittal shall be sent to the agent of the class. through interrogatories, depositions, and requests The administrative judge's recommendation to ac- for admissions, stipulations or production of docucept or dismiss shall become the Board's decision ments. It shall be grounds for objection to producing unless the Board accepts, rejects or modifies the evidence that the information sought by either party recommended decision within 30 days of the receipt is irrelevant, overburdensome, repetitious, priviof the recommended decision and complaint file leged, or that production would be unlawful. pursuant to section 268.209 of this part. The Board (2) If mutual cooperation fails, either party may shall notify the agent of the class by certified mail, request the administrative judge to rule on a request return receipt requested, and the administrative to develop evidence. If a party fails without good judge of its decision to accept or dismiss a class cause shown to respond fully and in timely fashion complaint. At the same time, the Board shall for- to a request made or approved by the administrative ward to the agent of the class copies of the admin- judge for documents, records, comparative data, istrative judge's recommendation and the complaint statistics or affidavits, and the information is solely file. The dismissal of a class complaint shall inform in the control of one party, such failure may, in the agent of the class either that the class complaint appropriate circumstances, cause the administrative is being filed on that date as an individual complaint judge: of discrimination and will be processed under sub- (i) To draw an adverse inference that the repart B of this part, or that the class complaint is also quested information would have reflected unfadismissed as an individual complaint in accordance vorably on the party refusing to provide the with section 268.206 of this part. In addition, it shall requested information; inform the agent of the class of the right to file a (ii) To consider the matters to which the requested request for review of the dismissal of the class information pertains to be established in favor of complaint with the Commission pursuant to section the opposing party; 268.401 of this part, or to file a civil action. A copy (iii) To exclude other evidence offered by the of EEOC Form 573, Notice of Appeal/Petition, shall party failing to produce the requested informabe attached to the Board's decision to dismiss a tion; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 Federal Reserve Bulletin • May 1994 (iv) To recommend that a decision be entered in attached to the Board's decision pursuant to section favor of the opposing party ; or 268.209(b)(5) of this part. (v) To take such other actions as the administra- (g) Hearing. On expiration of the period allowed for tive judge deems appropriate. preparation of the case, the administrative judge shall (3) During the period for development of evidence, set a date for a hearing. The hearing shall be conducted the administrative judge may, in his or her discre- in accordance with sections 268.208(a) through (f) of tion, direct that an investigation of facts relevant to this part. the class complaint or any portion be conducted. (h) Report of findings and recommendations. (1) The (4) Both parties shall furnish to the administrative administrative judge shall transmit to the Board a judge copies of all materials that they wish to be report of findings and recommendations on the class examined and such other material as may be re- complaint, including a recommended decision, sysquested. temic relief for the class and any individual relief, (f) Opportunity for resolution of the class complaint. where appropriate, with regard to the personnel (1) The administrative judge shall furnish the agent policy or practice that gave rise to the class comof the class and the Board's representative a copy of plaint. all materials obtained concerning the class com- (2) If the administrative judge finds no class relief plaint and provide opportunity for the agent of the appropriate, he or she shall determine if a finding of class to discuss the materials with the Board's individual discrimination is warranted and, if so, representative and to attempt resolution of the class shall recommend appropriate relief. complaint. (3) The administrative judge shall notify the Board (2) The class complaint may be resolved by agree- of the date on which the report of findings and ment of the Board and the agent of the class at any recommendations was forwarded to the Board. time as long as the agreement is fair and reasonable. (i) Board decision. (1) Within 60 days of receipt of the (3) If the class complaint is resolved, the terms of report of findings and recommendations issued unthe resolution shall be reduced to writing and signed der section 268.305(h) of this part, the Board shall by the agent of the class and the Board. issue a final decision pursuant to section 268.209 of (4) Notice of the agreement of resolution shall be this part, which shall accept, reject, or modify the given to all class members in the same manner as findings and recommendations of the administrative notification of the acceptance of the class complaint judge. and shall state the relief, if any, to be granted by the (2) The final decision of the Board shall be in writing Board. An agreement of resolution shall bind all and shall be transmitted to the agent of the class by members of the class. Within 30 days of the date of certified mail, return receipt requested, along with a the notice of the agreement of resolution, any mem- copy of the report of findings and recommendations ber of the class may petition the Commission to of the administrative judge. vacate the agreement of resolution because it bene- (3) When the Board's final decision is to reject or fits only the agent of the class or is otherwise not fair modify the findings and recommendations of the and reasonable. Such a petition will be processed in administrative judge, the Board's final decision shall accordance with paragraph (c) of this section and if contain specific reasons for the Board's final decithe administrative judge finds that the agreement of sion. resolution is not fair and reasonable, he or she shall (4) If the Board has not issued a final decision within recommend that the agreement of resolution be 60 days of its receipt of the administrative judge's vacated and that the original agent of the class be report of findings and recommendations, those findreplaced by the petitioner or some other class mem- ings and recommendations of the administrative ber who is eligible to be the agent of the class during judge shall become the Board's final decision. The further processing of the class complaint. The Board Board shall transmit the final decision to the agent of may determine, with respect to the petition, that the the class within 5 calendar days of the expiration of agreement of resolution is not fair and reasonable, the 60-day period. which vacates any agreement between the former (5) The final decision of the Board shall require any agent of the class and the Board. The Board's relief authorized by law and determined to be necdecision to vacate the agreement of resolution shall essary or desirable to resolve the issue of discrimibe communicated to the former agent of the class nation. and to the petitioner, and shall inform them of their (6) The final decision of the Board shall, subject to right to file a request for review with the Commis- subpart E of this part, be binding on all members of sion under section 268.401 of this part. A copy of the class and the Board. EEOC Form 573, Notice of Appeal/Petition, shall be (7) The final decision shall inform the class agent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 429 the right to seek review by the Commission, or to the applicable time limits. A copy of EEOC Form file a civil action, in accordance with subpart E of 573, Notice of Appeal/Petition, shall be attached to this part, and of the applicable time limits, the Board's decision pursuant to section (j) Notification of decision. The Board shall notify 268.209(b)(7) of this part. class members of the Board's final decision and relief awarded, if any, through the same media employed to Subpart D—Review by the Equal Employment give notice of the existence of the class complaint. The Opportunity Commission notice, where appropriate, shall include information concerning the rights of class members to seek indi- Section 268.401—Review by the Equal vidual relief, and of the procedures to be followed. Employment Opportunity Commission. Notice shall be given by the Board within 10 calendar days of the transmittal of the final decision to the agent (a) An individual complainant may file a request for of the class. review with the Commission of a final decision issued (k) Relief for individual class members. (1) When the by the Board under section 268.209 of this part, or a Board finds class discrimination, the Board shall dismissal by the Board of all or a portion of an eliminate or modify the personnel policy or practice individual complaint under section 268.206 of this part. out of which the complaint arose and provide indi- (b) An agent of the class may file a request for review vidual relief, including an award of attorney's fees with the Commission of a dismissal of all or a portion and costs, to the agent of the class in accordance of a class complaint rendered by the Board under with section 268.501(e) of this part. section 268.305(c) of this part, or a final decision of the (2) When class-wide discrimination is not found, but Board accepting or rejecting all or a portion of a report it is found that the agent of the class is a victim of of findings and recommendations of an administrative discrimination, section 268.501 of this part shall judge with regard to a class complaint pursuant to apply. The Board shall also, within 60 days of the section 268.305(i) of this part. A class member may file issuance of its final decision finding no class-wide a request for review with the Commission of a final discrimination, issue the acknowledgement of re- decision by the Board on a claim for individual relief ceipt of an individual complaint as required by under a class complaint pursuant to section 268.305(k) section 268.205(d) of this part and process in accor- of this part. Both an agent of the class and a class dance with the provisions of subpart B of this part, member may file a request for review with the Comeach individual complaint that was subsumed into mission of a final decision of the Board on a petition the class complaint. pursuant to section 268.305(f)(4) of this part. (3) When class-wide discrimination is found in a final (c) A complainant, agent of the class or individual decision of the Board, and a class member believes class claimant may file a request for review with the that he or she is entitled to individual relief, the class Commission of the Board's alleged noncompliance member may file a written claim with the Board's with a settlement agreement or final decision in accor- EEO Programs Director within 30 days of receipt of dance with section 268.504 of this part. notification by the Board of its final decision. The claim must include a specific, detailed showing that Section 268.402—Time limits for review by the the claimant is a class member who was affected by Equal Employment Opportunity Commission. a personnel action or matter resulting from the discriminatory personnel policy or practice, and that (a) Any dismissal of a complaint or a portion of a this discriminatory action took place within the complaint, or any final decision of the Board, as set period of time for which the Board found class-wide forth in paragraphs (b)(1) through (7) of section discrimination in its final decision. The period of 268.209 of this part, may be reviewed by the Commistime for which the Board finds class-wide discrimi- sion if a request for review is filed with the Commisnation shall begin not more than 45 days prior to the sion within 30 days of the complainant's receipt of the initial contact by the agent of the class with the EEO dismissal or final decision. In the case of class com- Counselor and shall end not later than the date when plaints, any final decision of the Board received by an the Board eliminates the personnel policy or prac- agent of the class, petitioner or any individual class tice found to be discriminatory in the Board's final claimant may be reviewed by the Commission if a decision. The Board shall issue a final decision on request for review is filed with the Commission within each such claim within 90 days of filing. Such 30 days of its receipt. Where a complainant has decision must include a notice of the right to file a notified the EEO Programs Director of alleged nonrequest for review with the Commission or a civil compliance with a settlement agreement in accordance action in accordance with subpart E of this part and with section 268.504 of this part, the complainant may Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 Federal Reserve Bulletin • May 1994 file a request for review with the Commission within 35 Section 268.404—Procedure on review. days after notification to the EEO Programs Director under section 268.504(a) of this part of such noncom- (a) The Commission's Office of Federal Operations pliance, but the complainant must file a request for shall review the complaint file and all written statereview within 30 days of receipt of the Board's deter- ments and briefs from either party. The Commission mination. may supplement the record by an exchange of letters (b) If the complainant is represented by an attorney of or memoranda, investigation, remand to the Board or record, then the 30-day time period provided in para- other procedures. graph (a) of this section within which to file a request (b) If the Commission's Office of Federal Operations for review shall be calculated from the receipt of the requests information from one or both of the parties to notification required under section 268.504(a) of this supplement the record, each party providing informapart by the attorney. In all other instances, the time tion shall send a copy of the information submitted to within which to file a request for review with the the Commission to the other party. Commission shall be calculated from the receipt of the notification required under section 268.504(a) of this Section 268.405—Decisions on review. part by the complainant. (a) The Commission's Office of Federal Operations Section 268.403—How to seek review. shall issue a written decision (the EEOC decision) setting forth its reasons for the decision. The Commis- (a) The complainant must file a request for review with sion shall dismiss requests for review in accordance the Commission by sending EEOC Form 573, Notice with sections 268.206, 268.403(c) and 268.507 of this of Appeal/Petition, to the Director, Office of Federal part. The EEOC decision shall be based on the pre- Operations, Equal Employment Opportunity Commis- ponderance of the evidence. If the EEOC decision sion, P.O. Box 19848, Washington, DC 20036, or by contains a finding of discrimination, appropriate rempersonal delivery or facsimile. The complainant edy (ies) shall be included and, where appropriate, the should indicate what matters he or she is requesting entitlement to interest, attorney's fees or costs shall be the Commission to review. indicated. The EEOC decision shall reflect the date of (b) The complainant shall furnish a copy of the request its issuance, inform the complainant of his or her civil for review to the Board's EEO Programs Director at action rights, and be transmitted to the complainant the same time that he or she files the request for review and to the Board by certified mail, return receipt with the Commission. In or attached to the request for requested. review by the Commission, the complainant must (b) The EEOC decision issued under paragraph (a) of certify the date and method by which service was this section is final, subject to paragraph (c) of this made on the Board. section, within the meaning of section 268.406(d) of (c) If a complainant does not file a request for review this part unless: with the Commission within the time limits of this (1) Either party files a timely request for reconsidsubpart D, the request for review shall be untimely and eration pursuant to section 268.406 of this part; or shall be dismissed by the Commission. (2) The Commission on its own motion reconsiders (d) Any statement or brief in support of the request for the case. review must be submitted to the Director, Office of (c) The Board, within 30 days of receiving the EEOC Federal Operations, Equal Employment Opportunity decision, shall issue final decision pursuant to section Commission, and to the Board within 30 days of the 268.209 of this part based upon the EEOC decision. filing of the request for review. Following receipt of the request for review, and any brief in support of the Section 268.406—Reconsideration. request for review, the Director, Office of Federal Operations, Equal Employment Opportunity Commis- (a) Within a reasonable period of time, the Commission, shall request the complaint file from the Board. sion may, in its discretion, reconsider an EEOC deci- The Board shall submit the complaint file and any sion issued under section 268.405(a) of this part, Board statement or brief in opposition to the request notwithstanding any other provisions of this part. for review to the Director, Office of Federal Opera- (b) A party may request reconsideration of an EEOC tions, Equal Employment Opportunity Commission, decision issued under section 268.405(a) of this part within 30 days of receipt of the Commission's request provided that such request is made within 30 days of for the complaint file. A copy of the Board's statement receipt of an EEOC decision or within 20 days of or brief shall be served on the complainant at the same receipt of another party's timely request for reconsidtime. eration. Such request, along with any supporting state- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 431 ment or brief, shall be submitted to the Commission's shall offer the applicant for employment the posi- Office of Review and Appeals, and to all parties with tion that the applicant for employment would proof of such submission. All other parties shall have have occupied absent discrimination or, if justi- 20 days from the date of service in which to submit to fied by the circumstances, a substantially equivaall other parties, with proof of submission, any state- lent position unless clear and convincing evidence ment or brief in opposition to the request. indicates that the applicant for employment would (c) The request for reconsideration or the statement or not have been selected even absent the discrimibrief in support of the request shall contain arguments nation. The offer to the applicant for employment or evidence which tend to establish that: shall be made in writing. The applicant for em- (1) New and material evidence is available that was ployment shall have 15 days from receipt of the not readily available when the EEOC decision was offer within which to accept or decline the offer. issued; Failure to accept the offer within the 15-day (2) The EEOC decision involved an erroneous inter- period will be considered a declination of the pretation of law, regulation or material fact, or offer, unless the applicant for employment can misapplication of established policy; or show that circumstances beyond his or her con- (3) The EEOC decision is of such exceptional nature trol prevented a response within the time limit. as to have substantial precedential implications. (ii) If the offer is accepted, appointment shall be (d) A decision on a request for reconsideration by retroactive to the date the applicant for employeither party is final and there shall be no further right ment would have been hired. Back pay, computed by either party to request reconsideration of an EEOC in the manner prescribed in 5 C.F.R. 550.805 shall decision. be awarded from the date the applicant for employment would have entered on duty until the Subpart E—Remedies, Enforcement and Civil date the applicant for employment actually enters Actions on duty unless clear and convincing evidence indicates that the applicant would not have been Section 268.501—Remedies and relief. selected even absent discrimination. Interest on back pay shall be included in the back pay com- (a) General procedures. When the Board finds discrim- putation where sovereign immunity has been ination when issuing its final decision pursuant to waived. An applicant for employment shall be section 268.209 of this part, the Board shall consider deemed to have performed service at the Board the following elements in providing full relief to com- during such period for all purposes except for plainants: meeting service requirements for completion of a required probationary period. (1) Notification to all employees of the Board of their right to be free of unlawful discrimination and (iii) If the offer of employment is declined, the assurance that the particular types of discrimination Board shall award the applicant for employment a found will not recur; sum equal to the back pay he or she would have (2) Commitment that corrective, curative or preven- received, computed in the manner prescribed in 5 tive action will be taken, or measures adopted, to C.F.R. 550.805 from the date he or she would ensure that violations of law and this part similar to have been appointed until the date the offer was those found unlawful will not recur; declined, subject to the limitation of paragraph (3) An unconditional offer to each identified victim (b)(3) of this section. Interest on back pay shall be of discrimination of placement in the position the included in the back pay computation. The Board person would have occupied but for the discrimina- shall inform the applicant for employment, in its tion suffered by that person, or a substantially offer of employment, of the right to this award in equivalent position; the event the offer of employment is declined. (4) Payment to each identified victim of discrimina- (2) When it is determined in a final decision that tion on a make whole basis for any loss of earnings discrimination existed at the time the applicant for the person may have suffered as a result of the employment was considered for employment but discrimination; and also by clear and convincing evidence that the (5) Commitment that the Board shall cease from applicant would not have been hired even absent engaging in the specific unlawful employment prac- discrimination, the Board shall nevertheless take all tice found in the case. steps necessary to eliminate the discriminatory practice and ensure it does not recur. (b) Relief for an applicant. (1) (i) When it is determined in a final decision that an applicant for employ- (3) Back pay under this paragraph (b) for complaints ment has been discriminated against, the Board under Title VII or the Rehabilitation Act may not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 Federal Reserve Bulletin • May 1994 extend from a date earlier than two years prior to the of members of the Bar, except that no award is date on which the complaint was initially filed by the allowable for the services of any employee of the applicant for employment. Federal Government; and (c) Relief for an employee. When it is determined in a (iii) Attorney's fees shall be paid only for services final decision that an employee of the Board was performed after the filing of a written complaint discriminated against, the Board shall provide relief, and after the complainant has notified the Board which shall include, but need not be limited to, one or that he or she is represented by an attorney, more of the following actions: except that fees allowable for a reasonable period (1) Nondiscriminatory placement, with back pay of time prior to the notification of representation computed in the manner prescribed in 5 C.F.R. for any services performed in reaching a determi- 550.805 unless clear and convincing evidence con- nation to represent the complainant. Written subtained in the record demonstrates that the personnel missions to the Board that are signed by the action would have been taken even absent the representative shall be deemed to constitute nodiscrimination. Interest on back pay shall be in- tice of representation. cluded in the back pay computation where sovereign (2) Amount of awards, (i) When the attorney's fees or immunity has been waived. The back pay liability costs are awarded, the complainant's attorney under Title VII or the Rehabilitation Act is limited to shall submit a verified statement of costs and the two years prior to the date the discrimination attorney's fees (including expert witness fees), as complaint was filed; appropriate, to the Board within 30 days of receipt (2) If clear and convincing evidence indicates that, of the final decision, unless a request for review or although discrimination existed at the time the per- reconsideration is filed. A statement of attorney's sonnel action was taken, the personnel action would fees shall be accompanied by an affidavit executed have been taken even absent discrimination, the by the attorney of record itemizing the attorney's Board shall nevertheless eliminate any discrimina- charges for legal services and both the verified tory practice and ensure it does not recur; statement and the accompanying affidavit shall be (3) Cancellation of an unwarranted personnel action made a part of the complaint file. The amount of and restoration of the employee; attorney's fees or costs to be awarded the com- (4) Expunction from the Board's records of any plainant shall be determined by agreement among adverse materials relating to the discriminatory the complainant, the complainant's representative practice; and and the Board. Such agreement shall immediately (5) Full opportunity to participate in the employee be reduced to writing. benefit denied (e.g., training, preferential work as- (ii) (A) If the complainant, the complainant's repsignments, overtime scheduling). resentative and the Board cannot reach an (d) Mitigation of damages. The Board shall not decline agreement on the amount of attorney's fees or to grant relief based upon failure to mitigate damages costs within 20 days of the Board's receipt of unless it has clear and convincing evidence that the the verified statement and accompanying affiemployee or applicant for employment has failed to davit, the Board shall issue a decision determinmitigate damages. The Board shall have the burden of ing the amount of attorney's fees or costs due proving by a preponderance of the evidence that the within 30 days of receipt of the statement and complainant has failed to mitigate his or her damages. affidavit. The decision of the Board shall in- (e) Attorney's fees or costs —(1) Awards of attorney's clude the specific reasons for determining the fees or costs. The provisions of this paragraph (e) amount of the award. The complainant or the relating to the award of attorney's fees or costs shall complainant's representative may file a request apply to allegations of discrimination prohibited by for review with the Commission of the Board's Title VII and the Rehabilitation Act. In a notice of decision, and the Board's notice to the comfinal action or a decision, the employee or applicant plainant and his or her representative shall for employment may be awarded reasonable attor- include EEOC Form 573, Notice of Appeal/ ney's fees or costs (including expert witness fees) Petition. incurred in the processing of the complaint. In this (B) The amount of attorney's fees shall be regard: calculated in accordance with existing case law (i) A finding of discrimination raises a presump- using the following standards: The starting tion of entitlement to an award of attorney's fees; point shall be the number of hours reasonably (ii) Attorney's fees are allowable only for the expended multiplied by a reasonable hourly services of members of the Bar and law clerks, rate. This amount may be reduced or increased paralegals or law students under the supervision in consideration of the following factors, al- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 433 though ordinarily many of these factors are (1) Service under the temporary or conditional ressubsumed within the calculation set forth in this toration provisions of this paragraph (b) shall be paragraph (e)(2)(ii)(B): The time and labor re- credited toward the completion of a probationary or quired, the novelty and difficulty of the ques- trial period, or eligibility for a within-grade increase, tions, the skill requisite to perform the legal if the EEOC decision is upheld. service properly, the attorney's preclusion from (2) The Board shall notify the Commission and the other employment due to acceptance of the employee in writing, at the same time it requests case, the customary fee, whether the fee is fixed reconsideration, that the relief it provides is tempoor contingent, time limitations imposed by the rary or conditional. client or the circumstances, the amount in- (c) Relief shall be provided in full no later than 60 days volved and the results obtained, the experience, after all administrative proceedings have ended. reputation, and ability of the attorney, the undesirability of the case, the nature and length of Section 268.503—Enforcement of EEOC the professional relationship with the client, decisions. and the awards in similar cases. Only in cases of exceptional success should any of these factors (a) Petition for enforcement. As set forth in this be used to enhance an award computed by the section, a complainant may petition the Commission formula set forth in this paragraph (e)(2)(ii)(B). for enforcement of an EEOC decision issued under the (C) The costs that may be awarded are those review process of this part. The petition shall be authorized by 28 U.S.C. 1920 to include: Fees submitted to the Office of Federal Operations, Equal of the reporter for all or any of the stenographic Employment Opportunity Commission. The petition transcript necessarily obtained for use in the shall specifically set forth the reasons that lead the case; fees and disbursements for printing and complainant to believe that the Board is not complying witnesses; and fees for exemplification and cop- with the EEOC decision. ies necessarily obtained for use in the case, (b) Compliance. The Commission's Office of Federal (iii) Witness fees shall be awarded in accordance Operations may take appropriate action to ascertain with the provisions of 28 U.S.C. 1821, except that whether the Board should have adopted the EEOC no award shall be made for a federal employee decision pursuant to section 268.209 of this part. If the who is in a duty status when made available as a Commission determines that the Board has failed to witness. comply with the EEOC decision in full, the Commission may undertake the efforts set forth in paragraphs (c) and (d) of this section to obtain compliance by the Section 268.502—Compliance with EEOC Board. decisions. (c) Clarification. The Commission's Office of Federal Operations may, on its own motion or in response to (a) The relief ordered in an EEOC decision, if accepted the petition for enforcement or in connection with a pursuant to section 268.209 of this part as a final timely request for reconsideration, issue a clarification decision, or not acted upon by the Board within the of an EEOC decision. A clarification may not change time periods of section 268.209 of this part, shall be the result of a prior EEOC decision or enlarge or binding upon the Board. Failure to implement its final diminish the relief contained in the EEOC decision, decision, or the EEOC decision in such circum- but it may further explain the meaning or intent of the stances, shall be grounds for the complainant to file a EEOC decision. The Commission may also send a civil action under sections 268.505 and 268.506 of this notice to the Board seeking an explanation why the part. Board failed to adopt the EEOC decision as its final (b) Notwithstanding paragraph (a) of this section, decision under section 268.209 of this part, and the when the Board requests reconsideration, when the Board shall respond to such request within 30 days of case involves an employee's removal, separation, or receipt of the notice addressing the issue raised by the suspension continuing beyond the date of the request Commission. for reconsideration, and when the EEOC decision (d) Notification to complainant of completion of adrecommends retroactive restoration, the Board shall ministrative efforts. Where the Commission has detercomply with the EEOC decision only to the extent of mined that the Board has failed to adopt the EEOC the temporary or conditional restoration of the em- decision as its final decision, the Commission may ployee to duty status in the position recommended by notify the complainant who has petitioned the Comthe Commission, pending the outcome of the Board's mission under paragraph (a) of this section of his or her request for reconsideration. right to file a civil action under section 268.505 of this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 Federal Reserve Bulletin • May 1994 part for failure of the Board to adopt the EEOC Section 268.505—Civil action: Title VII, Age decision as its final decision. Discrimination in Employment Act and Rehabilitation Act. Section 268.504—Compliance with settlement agreements and final decisions. A complainant who has filed an individual complaint, (a) Any settlement agreement knowingly and voluntar- an agent of the class who has filed a class complaint or ily agreed to by the Board and a complainant, reached a claimant who has filed a claim for individual relief at any stage of the complaint process, shall be binding pursuant to a class complaint may file a civil action in on both parties. A final decision of the Board that has an appropriate United States District Court alleging not been the subject of review by the Commission, or violations of Title VII, the ADEA or the Rehabilitation in a civil action, shall nonetheless be binding on the Act: Board. If the complainant believes that the Board has (a) Within 90 days of receipt of the Board's final failed to comply with the terms of a settlement agree- decision on an individual or class complaint, whether ment or a final decision, the complainant shall notify or not a request for review has been filed with the the EEO Programs Director, in writing, of the alleged Commission; noncompliance within 30 days of when the complain- (b) After 180 days from the date of filing an individual ant knew or should have known of the alleged non- or class complaint if a request for review by the compliance. The complainant may request that the Commission has not been filed and a final decision of Board implement the terms of the settlement agree- the Board has not been issued; ment or final decision or alternatively, that the com- (c) Within 90 days of receipt of an EEOC decision; or plaint be reinstated for further processing from the (d) After 180 days from the date of filing a request for point processing ceased. review with the Commission if an EEOC decision has (b) The Board shall attempt to resolve the matter not been issued by the Commission. brought to the Board's attention by the complainant in paragraph (a) of this section, and respond to the complainant, in writing. If the Board has not re- Section 268.506—Civil action: Equal Pay Act. sponded to the complainant, in writing, or if the complainant is not satisfied with the Board's attempt to resolve the matter, the complainant may request the A complainant may file a civil action under section Commission to review whether the Board has com- 16(b) of the Fair Labor Standards Act (29 U.S.C. plied with the terms of the settlement agreement or the 216(b)) in a court of competent jurisdiction within two final decision. The complainant may file such request years or, if the violation is willful, three years of the for review 35 days after he or she has served the Board date of the alleged violation of the Equal Pay Act with the notice of allegations of noncompliance, but regardless of whether he or she pursued any adminismust file the request for review with the Commission trative complaint processing (29 U.S.C. 225). Recovwithin 30 days of his or her receipt of a Board's ery of back wages under the Equal Pay Act is limited determination. The complainant must serve a copy of to two years prior to the date of filing suit, or to three the request for review on the Board and the Board may years if the violation is deemed willful. Liquidated submit a response to the Commission within 30 days of damages in an equal amount may also be awarded. The receiving notice of request for review. filing of a complaint or request for review with the (c) Prior to rendering its determination, the Commis- Commission under this part shall not toll the time for sion may request that the parties submit whatever filing a civil action. additional information or documentation they deem necessary, or it may direct that an investigation or hearing on the matter be conducted. If the Commission determines that the Board is not in compliance Section 268.507—Effect of filing a civil action. and the noncompliance is not attributable to acts or conduct of the complainant, it may order that the complaint be reinstated for further processing from the Filing a civil action under sections 268.505 or 268.506 point processing ceased. Allegations that subsequent of this part shall terminate the Commission's proacts of discrimination violate a settlement agreement cessing of any request for review. If a private suit is shall be processed as separate complaints under sec- filed subsequent to the filing of a request for review, tions 268.205 or 268.305 of this part, as appropriate, the parties shall notify the Commission of such filing in rather than under this section. writing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 435 Subpart F—Matters of General Applicability Board's affirmative action program for hiring individuals with a disability still refuses to provide the re- Section 268.601—EEO group statistics. quested information, the Board shall identify the employee's disability based upon the records supporting (a) The Board shall collect and maintain accurate the appointment. If any other employee still refuses to employment information on the race, national origin, provide the requested information or provides inforsex and disabilities of its employees. mation that the Board believes to be inaccurate, the (b) Data on race, national origin and sex shall be Board shall report the employee's disability status as collected by voluntary self-identification. If an em- unknown. ployee does not voluntarily provide the requested (g) The Board shall report to the Commission on information, the Board shall advise the employee of employment by race, national origin, sex and disability the importance of the data and of the Board's obliga- in the form and at such times as the Board and tion to report it. If the employee still refuses to provide Commission shall agree. the information, the Board shall make a visual identification and inform the employee of the data it will be Section 268.602—Reports to the Equal reporting. If the Board believes that information pro- Employment Opportunity Commission. vided by an employee is inaccurate, the Board shall advise the employee that the purpose for which the (a) The Board shall report to the Commission informadata is being collected is solely statistical, of the need tion concerning pre-complaint counseling and the stafor accuracy, of the Board's recognition of the sensitus, processing, and disposition of complaints under tivity of the information, and of the existence of this part at such times and in such manner as the Board procedures to prevent its unauthorized disclosure. If, and Commission shall agree. thereafter, the employee declines to change the appar- (b) The Board shall advise the Commission whenever ently inaccurate self identification, the Board shall it is served with a federal court complaint based upon accept it. a complaint that is pending review at the Commission. (c) Subject to applicable law, the information collected (c) The Board shall prepare annually equal employunder paragraph (b) of this section shall be disclosed ment opportunity plans of actions, in the form reonly in the form of gross statistics. The Board will not quested by the Commission, and shall submit such collect or maintain any information on the race, naplans for review and advice by the Commission. The tional origin, or sex of individual employees except in plans of action shall include: accordance with applicable law and when an auto- (1) Provision for the establishment of training and mated data processing system is used in accordance education programs designed to provide maximum with standards and requirements prescribed by the opportunity for employees to advance so as to Commission to ensure individual privacy and the sepperform at their highest potential; aration of that information from the employee's per- (2) Description of the qualifications, in terms of sonnel record. training and experience relating to equal employ- (d) The Board's system shall incorporate the following ment opportunity, of the principal and operating controls: officials concerned with administration of the (1) Only those categories of race and national origin Board's equal employment opportunity program; approved by the Commission shall be used; and and (2) Only the specific procedures for the collection (3) Description of the allocation of personnel and and maintenance of data that are prescribed or resources proposed by the Board to carry out its approved by the Commission shall be used. equal employment opportunity program. (e) The Board shall use the data only in studies and analyses that contribute affirmatively to achieving the Section 268.603—Voluntary settlement objectives of the Board's equal employment opportuattempts. nity program. The Board shall not establish quotas for the employment of persons on the basis of race, color, religion, sex, or national origin. The Board shall make reasonable efforts to settle, (f) Data on disabilities shall also be collected by voluntarily, complaints of discrimination as early as voluntary self-identification. If an employee does not possible in, and throughout, the administrative provoluntarily provide the requested information, the cessing of complaints, including the pre-complaint Board shall advise the employee of the importance of counseling stage. Any settlement reached shall be the data and of the Board's obligation to report it. If an reduced to writing and shall be signed by both parties employee who has been appointed pursuant to the and shall identify the allegations resolved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 Federal Reserve Bulletin • May 1994 Section 268.604—Filing and computation address and telephone number of a representative, all of time. official correspondence shall be with the representative with copies to the complainant. When the complainant (a) All time periods in this part that are stated in terms designates an attorney as representative, service of of days are calendar days unless otherwise stated. documents and decisions on the complaint shall be (b) A document shall be deemed timely filed if it is made on the attorney and not on the complainant, and delivered in person, or sent via U.S. mail and post- time frames for receipt of materials by the complainant marked before the expiration of the applicable filing shall be computed from the time of receipt by the period; or, in the absence of a legible postmark, if it is attorney. The complainant must serve all official correreceived via U.S. mail within five days of the expira- spondence on the designated representative of the tion of the applicable filing period. Board. (c) The time limits in this part are subject to waiver, (e) The complainant shall at all times be responsible estoppel, and equitable tolling. for proceeding with the complaint whether or not he or (d) The first day counted shall be the day after the event she has designated a representative. from which the time period began to run and the last (f) Witnesses who are Board employees shall be in a day of the period shall be included, unless it falls on a duty status when their presence is authorized or re- Saturday, Sunday, or Federal holiday, in which case quired in connection with a complaint. the period shall be extended to include the next business day. Section 268.606—Joint processing and consolidation of complaints. Section 268.605—Representation and official time. Complaints of discrimination filed by two or more complainants consisting of substantially similar allega- (a) At any stage in the processing of a complaint, tions of discrimination or relating to the same matter, or including the counseling stage under section 268.204 of two or more complaints of discrimination from the this part, the complainant shall have the right to be same complainant, may be consolidated by the Board accompanied, represented and advised by a represen- for joint processing after appropriate notification to the tative of complainant's choice. parties. The date of the first filed complaint controls the (b) If the complainant is an employee of the Board, he applicable time frames under subpart B of this part. or she shall have a reasonable amount of official time, if otherwise on duty, to prepare the complaint and to Subpart G—Prohibition Against Discrimination respond to Board and Commission requests for infor- In Board Programs and Activities Because of a mation. If the complainant is an employee of the Board Physical or Mental Disability and he or she designates another employee of the Board as his or her representative, the representative shall Section 268.701—Purpose and application. have a reasonable amount of official time, if otherwise on duty, to prepare the complaint and respond to Board (a) Purpose. The purpose of this subpart G is to and Commission requests for information. The Board is prohibit discrimination on the basis of a disability in not obligated to change work schedules, incur overtime programs or activities conducted by the Board. wages, or pay travel expenses to facilitate the choice of (b) Application. (1) This subpart G applies to all a specific representative or to allow the complainant programs and activities conducted by the Board. and representative to confer. The complainant and the Such programs and activities include: representative, if employed by the Board and otherwise (i) Holding open meetings of the Board or other in a pay status, shall be on official time, regardless of meetings or public hearings at the Board's office their tours of duty, when their presence is authorized or in Washington, DC; required by the Board or the Commission during the (ii) Responding to inquiries, filing complaints, or investigation, informal adjustment, or hearing on the applying for employment at the Board's office; complaint. (iii) Making available the Board's library facilities; (c) In cases where the representation of a complainant and or the Board would conflict with the official or collat- (iv) Any other lawful interaction with the Board or eral duties of the representative, the Board may, after its staff in any official matter with people who are giving the representative an opportunity to respond, not employees of the Board. disqualify the representative. (2) This subpart G does not apply to Federal Re- (d) Unless the complainant states otherwise in writing, serve Banks or to financial institutions or other after the Board has received written notice of the name, companies supervised or regulated by the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 75 Section 268.702—Notice. different, despite the existence of permissibly separate or different programs or activities. The Board shall make available to employees, appli- (3) The Board may not, directly or through contraccants for employment, participants, beneficiaries, and tual or other arrangements, utilize criteria or methods other interested persons information regarding the of administration, the purpose or effect of which provisions of this subpart G and its applicability to the would: programs and activities conducted by the Board, and (i) Subject qualified individuals with a disability to make this information available to them in such man- discrimination on the basis of a disability; or ner as the Board finds necessary to apprise such (ii) Defeat or substantially impair accomplishment persons of the protections against discrimination as- of the objectives of a program or activity with sured them by this subpart G. respect to individuals with a disability. (4) The Board may not, in determining the site or Section 268.703—Prohibition against location of a facility, make selections the purpose or discrimination. effect of which would: (i) Exclude individuals with a disability from, (a) No qualified individual with a disability shall, on deny them the benefits of, or otherwise subject the basis of a disability, be excluded from participation them to discrimination under any program or in, be denied the benefits of, or otherwise be subjected activity conducted by the Board; or to discrimination in any program or activity conducted (ii) Defeat or substantially impair the accomplishby the Board. ment of the objectives or a program or activity (b) (1) The Board, in providing any aid, benefit, or with respect to individuals with a disability. service, may not, directly or through contractual, (5) The Board, in the selection of procurement licensing, or other arrangements, on the basis of a contractors, may not use criteria that subject qualidisability: fied individuals with a disability to discrimination on (i) Deny a qualified individual with a disability the the basis of a disability. opportunity to participate in or benefit from the (6) The Board may not administer a licensing or aid, benefit, or service that is not equal to that certification program in a manner that subjects qualprovided to others; ified individuals with a disability to discrimination (ii) Afford a qualified individual with a disability on the basis of a disability, nor may the Board an opportunity to participate in or benefit from the establish requirements for the programs and activiaid, benefit, or service that is not equal to that ties of licensees or certified entities that subject afforded others; qualified individuals with a disability to discrimina- (iii) Provide a qualified individual with a disability tion on the basis of a disability. However, the with an aid, benefit, or service that is not as programs and activities of entities that are licensed effective in affording equal opportunity to obtain or certified by the Board are not, themselves, covthe same result, to gain the same benefit, or to ered by this subpart G. reach the same level of achievement as that pro- (c) The exclusion of individuals who do not have a vided to others; disability from the benefits of a program limited by (iv) Provide different or separate aid, benefits, or Federal statute or Board order to individuals with a services to individuals with a disability or to any disability or the exclusion of a specific class of individclass of individuals with a disability than is pro- uals with a disability from a program limited by Federal vided to others unless such action is necessary to statute or Board order to a different class of individuals provide qualified individuals with a disability with with a disability is not prohibited by this subpart G. aid, benefits, or services that are as effective as (d) The Board shall administer programs and activities those provided to others; in the most integrated setting appropriate to the needs (v) Deny a qualified individual with a disability the of qualified individuals with a disability. opportunity to participate as a member of planning or advisory boards; or Section 268.704—Employment. (vi) Otherwise limit a qualified individual with a disability in the enjoyment of any right, privilege, No qualified individual with a disability shall, on the advantage, or opportunity enjoyed by others re- basis of a disability, be subjected to discrimination in ceiving the aid, benefit, or service. employment under any program or activity conducted (2) The Board may not deny a qualified individual by the Board. The requirements and procedures of with a disability the opportunity to participate in section 268.303 of this part shall apply to discriminaprograms or activities that are not separate or tion in employment under this subpart G. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 Federal Reserve Bulletin • May 1994 Section 268.705—Program accessibility: is not required to make structural changes in existing Discrimination prohibited. facilities where other methods are effective in achieving compliance with this subpart G. In choosing among Except as otherwise provided in section 268.706 of this available methods for meeting the requirements of this part, no qualified individual with a disability shall, subpart G, the Board gives priority to those methods because the Board's facilities are inaccessible to or that offer programs and activities to qualified individunusable by individuals with a disability, be denied the uals with a disability in the most integrated setting benefits of, be excluded from participation in, or appropriate. otherwise be subjected to discrimination under any (c) Time period for compliance. The Board shall program or activity conducted by the Board. comply with any obligations established under this subpart G as expeditiously as possible. Section 268.706—Program accessibility: Existing facilities. Section 268.707—Program accessibility: New construction and alterations. (a) General. The Board shall operate each program or activity so that the program or activity, when viewed Each building or part of a building that is constructed in its entirety, is readily accessible to and usable by or altered by, on behalf of, or for the use of the Board, individuals with a disability. This paragraph (a) does shall be designed, constructed, or altered so as to be not: readily accessible to and usable by individuals with a (1) Necessarily require the Board to make each of its disability. existing facilities accessible to and usable by individuals with a disability; or Section 268.708—Communications. (2) Require the Board to take any action that it can determine, based on a written record, would result (a) The Board shall take appropriate steps to ensure in a fundamental alteration in the nature of a pro- effective communication with applicants for employgram or activity or in undue financial and adminis- ment, participants, personnel of other Federal entities, trative burdens. In those circumstances where the and members of the public. Board believes that the proposed action would fun- (1) The Board shall furnish appropriate auxiliary damentally alter the program or activity or would aids where necessary to afford an individual with a result in undue financial and administrative burdens, disability an equal opportunity to participate in, and the Board shall establish a written record showing enjoy the benefits of, a program or activity conthat compliance with this paragraph (a) would result ducted by the Board. in such alterations or burdens. The decision that (i) In determining what type of auxiliary aid is compliance would result in such alterations or bur- necessary, the Board shall give primary considerdens shall be made by the Board of Governors or ation to the requests of the individual with a their designee after considering all Board resources disability. available for use in the funding and operation of the (ii) The Board need not provide individually preconducted program or activity, and must be accom- scribed devices, readers for personal use or study, panied by a written statement of the reasons for or other devices of a personal nature. reaching that conclusion. If an action would result in (2) Where the Board communicates with employees such an alteration or such burdens, the Board shall and others by telephone, telecommunication detake any other action that would not result in such vices for deaf persons (TDD's) or equally effective an alteration or such burdens but would neverthe- telecommunication systems shall be used. less ensure that individuals with a disability receive (b) The Board shall ensure that interested persons, the benefits and services of the program or activity. including persons with impaired vision or hearing, can (b) Methods. The Board may comply with the require- obtain information as to the existence and location of ments of this subpart G through such means as rede- accessible services, activities, and facilities. sign of equipment, reassignment of services to acces- (c) The Board shall provide signs at a primary entrance sible buildings, assignment of aides to individuals with to any inaccessible facility, directing users to a locaa disability, home visits, delivery of service at alter- tion at which they can obtain information about accesnate accessible sites, alteration of existing facilities sible facilities. The international symbol for accessiand construction of new facilities, use of accessible bility shall be used at each primary entrance of an rolling stock, or any other methods that result in accessible facility. making its programs or activities readily accessible to (d) This subpart G does not require the Board to take and usable by individuals with a disability. The Board any action that would result in a fundamental alter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 439 ation in the nature of a program or activity or in undue graph (d), a complaint mailed to the Board shall be financial and administrative burdens. In those circum- deemed filed on the date it is postmarked. Any other stances where the Board believes that the proposed complaint shall be deemed filed on the date it is action would fundamentally alter the program or activ- received by the Board. ity or would result in undue financiala nd administrative (4) How to file. Complaints may be delivered or burdens, the Board shall establish a written record mailed to the Administrative Governor, the Staff showing compliance with this subpart G would result in Director for Management, the EEO Programs Direcsuch alterations or burdens. The determination that tor, the Federal Women's Program Manager, the compliance would result in such alterations or burdens Hispanic Program Coordinator, or the Disabled Pershall be made by the Board of Governors or their sons Program Coordinator. Complaints should be designee after considering all Board resources available sent to the EEO Programs Director, Board of Govfor use in the funding and operation of the conducted ernors of the Federal Reserve System, 20th and C program or activity, and must be accompanied by a Street, NW, Washington, DC 20551. If any Board written statement of the reasons for reaching that official other than the EEO Programs Director reconclusion. If an action required to comply with this ceives a complaint, he or she shall forward the subpart G would result in such an alteration or such complaint to the EEO Programs Director. burdens, the Board shall take any other action that (e) Acceptance of complaint — (1) The EEO Programs would not result in such an alteration or such burdens Director shall accept a complete complaint that is but would nevertheless ensure that, to the maximum filed in accordance with paragraph (d) of this section extent possible, individuals with a disability receive the and over which the Board has jurisdiction. The EEO benefits and services of the program or activity. Programs Director shall notify the complainant of receipt and acceptance of the complaint. Section 268.709—Compliance procedures. (2) If the EEO Programs Director receives a complaint that is not complete, he or she shall notify the (a) Applicability. Notwithstanding any other provision complainant, within 30 days of receipt of the incomof this part, this section, except as provided in para- plete complaint, that additional information is graph (b) of this section, rather than subpart B and needed. If the complainant fails to complete the section 268.305 of this part, shall apply to all allega- complaint within 30 days of receipt of this notice, tions of discrimination on the basis of a disability in the EEO Programs Director shall dismiss the comprograms or activities conducted by the Board. plaint without prejudice. (b) Employment complaints. The Board shall process (3) If the EEO Programs Director receives a comcomplaints alleging discrimination in employment on plaint over which the Board does not have jurisdicthe basis of a disability in accordance with subpart B tion, the EEO Programs Director shall notify the and section 268.305 of this part. complainant and shall make reasonable efforts to (c) Responsible official. The EEO Programs Director refer the complaint to the appropriate government shall be responsible for coordinating implementation entity. of this section. (f) Investigation/conciliation. (1) Within 180 days of (d) Filing the complaint — (1) Who may file. Any the receipt of a complete complaint, the EEO Properson who believes that he or she has been sub- grams Director shall complete the investigation of jected to discrimination prohibited by this subpart G the complaint, attempt informal resolution of the may, personally or by his or her authorized repre- complaint, and if no informal resolution is achieved, sentative, file a complaint of discrimination with the the EEO Programs Director shall forward the inves- EEO Programs Director. tigative report to the Staff Director for Management. (2) Confidentiality. The EEO Programs Director (2) The EEO Programs Director may request Board shall not reveal the identity of any person submitting employees to cooperate in the investigation and a complaint, except when authorized to do so in attempted resolution of complaints. Employees who writing by the complainant, and except to the extent are requested by the EEO Programs Director to necessary to carry out the purposes of this subpart participate in any investigation under this section G, including the conduct of any investigation, hear- shall do so as part of their official duties and during ing, or proceeding under this subpart G. the course of regular duty hours. (3) When to file. Complaints shall be filed within 180 (3) The EEO Programs Director shall furnish the days of the alleged act of discrimination. The EEO complainant with a copy of the investigative report Programs Director may extend this time limit for promptly after completion of the investigation and good cause shown. For the purpose of determining provide the complainant with an opportunity for when a complaint is timely filed under this para- informal resolution of the complaint. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 Federal Reserve Bulletin • May 1994 (4) If a complaint is resolved informally, the terms of for a hearing, the EEO Programs Director shall the agreement shall be reduced to writing and made request that the Board of Governors, or its designee, a part of the complaint file, with a copy of the appoint an administrative law judge to conduct the agreement provided to the complainant. The written hearing. The administrative law judge shall issue a agreement may include a finding on the issue of notice to the complainant and the Board specifying discrimination and shall describe any corrective the date, time, and place of the scheduled hearing. action to which the complainant has agreed. The hearing shall be commenced no earlier than 15 (g) Letter of findings. (1) If an informal resolution of calendar days after the notice is issued and no later the complaint is not reached, the EEO Programs than 60 days after the request for a hearing is filed, Director shall transmit the complaint file to the Staff unless all parties agree to a different date. Director for Management. The Staff Director for (2) The hearing, decision, and any administrative Management shall, within 180 days of the receipt of review thereof shall be conducted in conformity the complete complaint by the EEO Programs Di- with 5 U.S.C. 554-557. The administrative law rector, notify the complainant of the results of the judge shall have the duty to conduct a fair hearing, investigation in a letter sent by certified mail, return to take all necessary actions to avoid delay, and to receipt requested, containing: maintain order. He or she shall have all powers (i) Findings of fact and conclusions of law; necessary to these ends, including (but not limited (ii) A description of a remedy for each violation to) the power to: found; (i) Arrange and change the dates, times, and (iii) A notice of right of the complainant to appeal places of hearings and prehearing conferences and the letter of findings under paragraph (k) of this to issue notice thereof; section; and (ii) Hold conferences to settle, simplify, or deter- (iv) A notice of right of the complainant to request mine the issues in a hearing, or to consider other a hearing. matters that may aid in the expeditious disposition (2) If the complainant does not file a notice of appeal of the hearing; or does not request a hearing within the times pre- (iii) Require parties to state their positions in scribed in paragraph (h)(1) and (j)(l) of this section, writing with respect to the various issues in the the EEO Programs Director shall certify that the hearing and to exchange such statements with all letter of findings under this paragraph (g) is the final other parties; decision of the Board at the expiration of those times. (iv) Examine witnesses and direct witnesses to (h) Filing an aopeal. (1) Notice of appeal, with or testify; without a request for hearing, shall be filed by the (v) Receive, rule on, exclude, or limit evidence; complainant with the EEO Programs Director (vi) Rule on procedural items pending before him within 30 days of receipt from the Staff Director for or her; and Management of the letter of findings required by (vii) Take any action permitted to the administraparagraph (g) of this section. tive law judge as authorized by this subpart G or (2) If the complainant does not request a hearing, the by the provisions of the Administrative Procedure EEO Programs Director shall notify the Board of Act (5 U.S.C. 554-557). Governors of the appeal by the complainant and that (3) Technical rules of evidence shall not apply to a decision must be made under paragraph (k) of this hearings conducted pursuant to this paragraph (j)> section. but rules or principles designed to assure production (i) Acceptance of appeal. The EEO Programs Director of credible evidence and to subject testimony to shall accept and process any timely appeal. A com- cross-examination shall be applied by the adminisplainant may appeal to the Administrative Governor trative law judge wherever reasonably necessary. from a decision by the EEO Programs Director that an The administrative law judge may exclude irreleappeal is untimely. This appeal shall be filed within 15 vant, immaterial, or unduly repetitious evidence. All calendar days of receipt of the decision from the EEO documents and other evidence offered or taken for Programs Director. the record shall be open to examination by the (j) Hearing. (1) Notice of a request for a hearing, with parties, and opportunity shall be given to refute or without a request for an appeal, shall be filed by facts and arguments advanced on either side of the the complainant with the EEO Programs Director issues. A transcript shall be made of the oral eviwithin 30 days of receipt from the Staff Director for dence except to the extent the substance thereof is Management of the letter of findings required by stipulated for the record. All decisions shall be paragraph (g) of this section. Upon a timely request based upon the hearing record. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 441 (4) The costs and expenses for the conduct of a notify the Board of Governors when a complaint is hearing shall be allocated as follows: ripe for decision under this paragraph (k). At the (i) Employees of the Board shall, upon the request request of any member of the Board of Governors of the administrative law judge, be made available made within 3 business days of such notice, the to participate in the hearing and shall be on official Board of Governors shall make the decision on the duty status for this purpose. They shall not re- complaint. If no such request is made, the Adminceive witness fees. istrative Governor, or the Staff Director for Man- (ii) Employees of other Federal agencies called to agement if he or she is delegated the authority to do testify at a hearing, at the request of the adminis- so under section 268.103(a)(2) of this part, shall trative law judge and with the approval of the make the decision on the complaint. The decision employing agency, shall be on official duty status shall be made based on information in the investiduring any absence from normal duties caused by gative record and, if a hearing is held, on the hearing their testimony, and shall not receive witness fees. record. The decision shall be made within 60 days of (iii) The fees and expenses of other persons called the receipt by the EEO Programs Director of the to testify at a hearing shall be paid by the party notice of appeal and investigative record pursuant to requesting their appearance. paragraph (h)(1) of this section or 60 days following (iv) The administrative law judge may require the the end of the period for filing reply exceptions set Board to pay travel expenses necessary for the forth in paragraph (j)(6) of this section, whichever is complainant to attend the hearing. applicable. If the decision-maker under this para- (v) The Board shall pay the required expenses and graph (k) determines that additional information is charges for the administrative law judge and court needed from any party, the decision-maker shall reporter. request the information and provide the other party (vi) All other expenses shall be paid by the parties or parties an opportunity to respond to that inforincurring them. mation. The decision-maker shall have 60 days from (5) The administrative law judge shall submit in receipt of the additional information to render the writing recommended findings of fact, conclusions decision on the appeal. The decision-maker shall of law, and remedies to the complainant and the transmit the decision by letter to all parties. The EEO Programs Director within 30 days, after the decision shall set forth the findings, any remedial receipt of the hearing transcripts, or within 30 days actions required, and the reasons for the decision. If after the conclusion of the hearing if no transcripts the decision is based on a hearing record, the are made. This time limit may be extended with the decision-maker shall consider the recommended depermission of the EEO Programs Director. cision of the administrative law judge and render a (6) Within 15 calendar days after receipt of the final decision based on the entire record. The decirecommended decision of the administrative law sion-maker may also remand the hearing record to judge, the complainant may file exceptions to the the administrative law judge for a fuller developrecommended decision with the EEO Programs ment of the record. Director. On behalf of the Board, the EEO Pro- (2) The Board shall take any action required under grams Director may, within 15 calendar days after the terms of the decision promptly. The decisionreceipt of the recommended decision of the admin- maker may require periodic compliance reports istrative law judge, take exception to the recom- specifying: mended decision of the administrative law judge and (i) The manner in which compliance with the shall notify the complainant in writing of the Board's provisions of the decision has been achieved; exception. Thereafter, the complainant shall have 10 (ii) The reasons any action required by the final calendar days to file reply exceptions with the EEO Board decision has not been taken; and Programs Director. The EEO Programs Director (iii) The steps being taken to ensure full complishall retain copies of the exceptions and replies to ance. the Board's exception for consideration by the (3) The decision-maker may retain responsibility for Board. After the expiration of the time to reply, the resolving disputes that arise between parties over recommended decision shall be ripe for a decision interpretation of the final Board decision, or for under paragraph (k) of this section. specific adjudicatory decisions arising out of imple- (k) Decision. (1) The EEO Programs Director shall mentation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 Federal Reserve Bulletin • May 1994 ORDERS ISSUED UNDER BANK HOLDING Douglas Amendment COMPANY ACT Section 3(d) of the BHC Act, the Douglas Amend- Orders Issued Under Section 3 of the Bank ment, prohibits the Board from approving an applica- Holding Company Act tion by a bank holding company to acquire control of any bank located outside of the bank holding com- Banc One Corporation pany's home state, unless such acquisition is "specif- Columbus, Ohio ically authorized by the statute laws of the State in which such bank is located, by language to that effect Banc One Arizona Corporation and not merely by implication."3 For purposes of the Phoenix, Arizona Douglas Amendment, the home state of Banc One is Ohio.4 In considering this proposal, the Board has Order Approving the Acquisition of a Bank Holding analyzed the interstate banking statutes of Utah and Company has concluded that Banc One is authorized under the laws of Utah to acquire Capital and Capital Bank.5 The Banc One Corporation, Columbus, Ohio ("Banc Utah Commissioner has approved Banc One's pro- One"), and its wholly owned subsidiary, Banc One posed acquisition of Capital. In light of all facts of Arizona Corporation, Phoenix, Arizona ("Banc One record, the Board concludes that its approval of this Arizona"), bank holding companies within the mean- proposal is not prohibited by the Douglas Amendment. ing of the Bank Holding Company Act ("BHC Act"), have applied for the Board's approval under section 3 Competitive, Financial, Managerial and Supervisory of the BHC Act (12 U.S.C. § 1842) to acquire Capital Considerations Bancorp, Salt Lake City, Utah ("Capital"), and thereby indirectly acquire Capital's subsidiary bank, Banc One and Capital compete directly in the Salt Capital City Bank, South Salt Lake City, Utah ("Cap- Lake City banking market.6 Upon consummation of ital Bank").1 this proposal, the level of market concentration as Notice of the application, affording interested per- measured by the Herfindahl-Hirschman Index sons an opportunity to submit comments, has been ("HHI") for the Salt Lake City banking market would published (59 Federal Register 3107 (1994)). The time increase by 28 points to 1528.7 Based on all the facts of for filing comments has expired, and the Board has record, including the relatively small increase in marconsidered the application and all comments received ket concentration and Banc One's market share and in light of the factors set forth in section 3(c) of the the number of competitors remaining in the market, BHC Act. the Board concludes that consummation of this acqui- Banc One, with total deposits of $62.6 billion, controls banking subsidiaries in Ohio, Indiana, Michigan, Wisconsin, Illinois, Texas, Colorado, Kentucky, West 3. 12 U.S.C. § 1842(d). Virginia, Arizona, California, Oklahoma, and Utah. 4. A bank holding company's home state is that state in which the operations of the bank holding company's banking subsidiaries were Banc One is the fifth largest commercial banking principally conducted on July 1, 1966, or the date on which the organization in Utah, controlling $848.3 million in company became a bank holding company, whichever is later. deposits, representing 7 percent of total deposits in 5. The Utah interstate banking statute permits an out-of-state bank holding company to acquire a bank holding company that owns a bank commercial banks in Utah.2 Capital is the 13th larg- in Utah if the Utah Commissioner approves the acquisition, and the est commercial banking organization in Utah, con- Board has previously determined that an Ohio bank holding company may acquire a bank located in Utah. See Banc One Corporation, 79 trolling $107.4 million in deposits, representing less Federal Reserve Bulletin 524 (1993); see also Utah Code Ann. than 1 percent of total deposits in commercial banks § 7-1-702(2). in the state. Upon consummation of Banc One's 6. The Salt Lake City banking market is approximated by the Salt Lake City, Utah, RMA. acquisition of Capital, Banc One would become the 7. Under the revised Department of Justice Merger Guidelines, 49 fourth largest commercial banking organization in Federal Register 26,823 (June 29, 1984), a market in which the the state, controlling $955.7 million in deposits, rep- post-merger HHI is below 1000 is considered unconcentrated and a market in which the post-merger HHI is between 1000 and 1800 is resenting 7.9 percent of the total deposits in commermoderately concentrated. The Justice Department has informed the cial banks in Utah. Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anti-competitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by 200 points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank 1. Banc One Arizona will merge with and into Capital, with Banc mergers for anti-competitive efFects implicitly recognize the compet- One Arizona surviving the merger. itive effect of limited purpose lenders and other non-depository 2. State and market deposit data are as of June 30, 1992. financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 443 sition would not have significantly adverse effects on specific economically depressed areas in Columbus.10 competition in the Salt Lake City banking market or The Board has carefully reviewed the CRA perforany relevant banking market. mance records of Banc One, Capital, and their respec- The Board also concludes that the financial and tive subsidiary banks, as well as all comments remanagerial resources and future prospects of Banc ceived regarding this application, Banc One's One, Capital, and their respective subsidiaries and the responses to those comments, and all other relevant other supervisory factors the Board must consider facts of record in light of the CRA, the Board's under section 3 of the BHC Act are consistent with regulations, and the Statement of the Federal Finanapproval of this proposal. cial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").11 Convenience and Needs Considerations Records of Performance Under the CRA In acting upon an application to acquire a depository institution under the BHC Act, the Board must con- A. CRA Performance Examinations sider the convenience and needs of the communities to be served, and take into account the records of the The Agency CRA Statement provides that a CRA relevant depository institutions under the Community examination is an important and often controlling Reinvestment Act (12 U.S.C § 2901 et seq.) ("CRA"). factor in the consideration of an institution's CRA The CRA requires the federal financial supervisory record and that these reports will be given great weight agencies to encourage financial institutions to help in the applications process.12 The Board notes that meet the credit needs of the local communities in Banc One's lead subsidiary bank in Ohio, Bank One, which they operate, consistent with the safe and sound Columbus, N. A. (' 'Bank One-Columbus''), received an operation of such institutions. To accomplish this end, "outstanding" rating from the Office of the Comptrolthe CRA requires the appropriate federal supervisory ler of the Currency ("OCC") at its most recent examauthority to "assess the institution's record of meeting ination for CRA performance in April 1993. Bank One the credit needs of its entire community, including Texas received a "satisfactory" rating from the OCC low- and moderate-income neighborhoods, consistent at its most recent CRA examination in June 1993. In with the safe and sound operation of such institution," addition, all but two of Banc One's remaining 79 and to take that record into account in its evaluation of subsidiary banks received either "outstanding" or bank holding company applications.8 "satisfactory" ratings from their primary regulators in The Board has received comments from two orga- the most recent examinations of their CRA perfornizations that raise issues regarding the efforts by mance.13 The Board also notes that Capital Bank Banc One to meet the credit needs of certain low- and received a "satisfactory" rating from its primary regmoderate-income neighborhoods within the communi- ulator, the Federal Deposit Insurance Corporation, at ties served by Bank One Texas, N.A. ("Texas Prot- its most recent examination for CRA performance in estant"), and Bank One Columbus, N.A. ("Columbus July 1992. Protestant"). The Texas Protestant alleges that Bank One Texas has redlined Dalworth, a low- and moder- B. Performance Record of Bank One Texas ate-income neighborhood in Grand Prairie, Texas, and similarly situated adjacent banking markets.9 The Co- The Board has recently evaluated the CRA record of lumbus Protestant objects to the activities of Banc Bank One Texas in connection with Banc One's One's community development corporation ("Banc One CDC") and Banc One's record of lending in two 10. This commenter also requested that the Board conduct a 8. 12 U.S.C. § 2903. comprehensive review of Banc One CDC's business activities since its 9. The Dalworth area is approximated by census tract 0161.00 in formation in 1987. Dallas County and census tract 1130.02 in Tarrant County. The Texas 11. 54 Federal Register 13,742 (1989). Protestant has criticized the marketing and lending efforts of Bank 12. Id. at 13,745 (1989). One Texas in the Dalworth area for consumer, small business, and 13. The OCC assigned a rating of "needs to improve" to Bank One housing-related loans. This commenter also submitted data showing Cleveland. The Board has continued to monitor Bank One Clevedisparities based on race in income, employment, and educational land's progress in addressing the issues raised by this performance levels in the Dalworth area and alleges that Bank One Texas has failed rating. Bank One Cleveland has submitted quarterly progress reports to develop a plan of action for the Dalworth community and has not to the Federal Reserve Bank of Cleveland and to the OCC. Based on implemented outreach efforts with local community-based organiza- all facts of record, including the steps implemented by Bank One tions, including African-American organizations. In addition, the Cleveland and other supervisory information, the Board believes that Texas Protestant alleges that Bank One Texas does not have a Bank One Cleveland is addressing the areas of weakness noted by the culturally diverse management staff who are familiar with the Dal- OCC. The Board will continue to monitor this progress in future worth area. applications by Banc One to establish a depository facility. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 Federal Reserve Bulletin • May 1994 acquisition of Mid States Bancshares.14 In the Mid regulations. The OCC Examiners concluded that the States Order, the Board addressed allegations that bank affirmatively encourages credit applications from Banc One was not complying with the spirit and all segments of its delineated community, including requirements of various laws and regulations designed low- and moderate-income neighborhoods, for all to prevent discrimination in bank credit practices, types of credit. The examiners also noted that the bank including the CRA, in attempting to meet the credit is in substantial compliance with laws and regulations needs of the African-American and ethnic minorities in that ensure fair lending practices. In addition, Bank several communities, including the community of One Texas has initiated a "second-look" process Grand Prairie, which includes the Dalworth neighbor- whereby all denied secondary mortgage loan applicahood. The Board noted that Bank One Texas offers a tions, portfolio mortgage loan applications, and housvariety of credit products and services designed to ing agency mortgage loan applications are reviewed. meet the credit needs of low- and moderate-income Bank One Texas intends to increase the scope of its and minority neighborhoods within its delineated com- current "second-look" program to cover all small munities and that in 1992 Bank One Texas had made business loan and home improvement loan applicaapproximately $300 million in loans in low- and tions. moderate-income census tracts. In 1992, the bank Based on all facts of record, and for the reasons introduced and made loans totalling $9.5 million under more fully discussed in the Mid States Order, the its American Dream Mortgage Program, which pro- Board concludes that the overall CRA record of Bank vides flexible underwriting criteria. The bank also One Texas is consistent with approval of this applicamade loans totalling $28 million through its Affordable tion. Housing Lenders in Dallas, Austin, Fort Worth, Houston, Midcities, and San Antonio in 1992. The Board C. Record of Banc One CDC's Activities and also noted that the bank has relationships with several Bank One-Columbus community groups, including the Dallas Affordable Housing Partnership, Voice of Hope, and The Enter- Activities of the CDC. Columbus Protestant believes prise Foundation, that work predominantly in African- that Banc One CDC's concentration16 in equity invest- American sections of Dallas.15 ments that qualify for low-income tax credits pursuant Bank One Texas also has engaged in numerous to section 42 of the Internal Revenue Code ("Section outreach efforts in order to ascertain the credit needs 42") is inconsistent with the Federal Reserve's origiof the Dalworth area and advertise its credit products nal approval of the formation of Banc One CDC and to residents in the Dalworth area. These efforts have demonstrates Banc One's lack of commitment to proincluded participation in public forums in the Dalworth ductive community development.17 Bank holding comarea, including one that provided counselling to first- panies are authorized under Regulation Y to make time homebuyers. Representatives of Bank One Texas equity investments in corporations or projects dealso have met with various local business owners, signed to promote community welfare through, among minority contractors, and representatives of minority other activities, development of low-income areas by business associations, including the president of the providing housing.18 The Board's Policy Statement on MidCities Minority Council, in order to discuss spe- community welfare projects specifically identifies cific credit and other banking products offered by the projects for the construction or rehabilitation of housbank. Bank One Texas officers have also met with ing for the benefit of persons of low- or moderategroups of small business owners convened by the income as one type of investment that promotes com- Grand Prairie chapter of the NAACP. munity welfare.19 The Board has previously stated in The most recent examination of Bank One Texas for CRA compliance found no evidence of illegal discrimination or practices that were inconsistent with the 16. Banc One CDC estimates that 94 percent of its current investsubstantive provisions of antidiscrimination laws and ments are in housing projects that qualify for low-income tax credit treatment. These investments represented approximately $32.9 million as of September 1993. 17. Congress enacted Section 42 to increase the supply of lowincome rental housing by providing tax credits for investments in 14. Banc One Corporation, 79 Federal Reserve Bulletin 1152 (1993) qualified low-income housing projects. S. Rep. No. 313, 99th Cong., (the "Mid States Order"). 2d Sess. 758 (1986). Section 42 generally requires that the developer 15. In the Dalworth area, Bank One Texas had 234 loan accounts reserve 20 percent of the units for households that earn under 50 totalling $3.6 million outstanding in 1993. Banc One acquired and percent of the area median income or 40 percent of the units for retained a substantial number of these loans through its acquisition of households that earn under 60 percent of the area median income. the bank subsidiaries of MCorp, and Bank One Texas has continued to Recipients of the tax credits must agree to maintain the units as originate loans in the Dalworth area. In addition, in December 1993, affordable housing for at least 15 years. Bank One Texas assisted in financing the construction of a church 18. 12 C.F.R. 225.25(b)(6). soup kitchen in Dalworth. 19. 12 C.F.R. 225.127(d)(1). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 445 connection with community development activities engaged in economic development projects in two under Regulation Y that the receipt of modest profits is economically depressed areas of Columbus, the Main not inconsistent with the nature of such activities.20 Street area and the 1-670 Corridor. Although the The financial advantages for a for-profit CDC from tax application to form Banc One CDC noted those areas credits received in such investments is one means of as examples of the types of areas to be considered for stimulating investments in low-income housing. Thus, economic revitalization projects, the approval was while Columbus Protestant expresses a concern that not conditioned upon Banc One CDC's making an Banc One CDC may make a profit on these invest- investment in a particular place. ments, the Board does not require that these activities Lending in Specific Areas in Columbus. Columbus be not-for-profit or eleemosynary. Protestant generally alleges that Banc One has failed Columbus Protestant also alleges that the activities to address the credit needs of the Main Street area and of Banc One CDC are inconsistent with the commit- the 1-670 Corridor, and has misrepresented the investments and representations made in Banc One's appli- ment efforts of Bank One-Columbus in economically cation to the Federal Reserve System to form Banc depressed areas of Columbus. One CDC. The application filed by Banc One indicates The Board recently reviewed the record of perforthat Banc One CDC was formed to assist the Banc One mance by Bank One-Columbus under the CRA.21 As affiliate banks in making investments in projects to previously noted, Bank One-Columbus received an promote community welfare, and describes the follow- "outstanding" rating for CRA performance in its ing four types of investments that Banc One CDC most recent CRA examination by the OCC. To help proposed to make: meet the housing needs of low- and moderate-income (1) The provision of affordable housing in low-income residents, Bank One-Columbus offers a number of areas, including making investments that utilize low- direct and subsidized home-loan products through income housing tax credits under Section 42; the Community Home Buyers Program; the Ohio (2) Economic revitalization of low-income areas; Housing Finance Agency First Time Homebuyers (3) Projects to aid minority business people in the Program; and a variety of government-sponsored conduct of their business; and loan programs, including programs through the Fed- (4) Projects to provide employment opportunities eral Housing Authority and the Veterans Adminisfor target populations. tration. In addition, from 1991 through the first quarter of 1993, the bank made 1,627 small business The Federal Reserve Bank of Cleveland, acting loans totalling $61.5 million, $47 million of which was pursuant to authority delegated by the Board, ap- generated by branches serving low- and moderateproved the application to form Banc One CDC in 1987. income areas. Furthermore, Bank One-Columbus participates in the Small Business Administration's Banc One CDC is, in fact, engaged primarily in one certified and preferred lender programs. of the activities proposed in the application to form Banc One CDC—providing affordable housing in Columbus Protestant also asserts that Banc One has low-income areas by making investments that utilize misrepresented Bank One-Columbus's lending activilow-income tax credits. Columbus Protestant alleges ties in economically depressed areas of Columbus in that Banc One CDC must engage in all four activities, previous applications submitted to the Board. The and cannot, consistent with its application to the Board has carefully reviewed these allegations and Board, engage in only one type of community devel- does not believe that Banc One's statements were opment activity. In fact, however, the original appli- inaccurate in any material respect.22 cation did not commit and the Federal Reserve Bank's approval did not require that Banc One CDC would engage in these other activities. The application listed four types of investments as examples, and did not include binding commitments to engage 21. Banc One Corporation, 79 Federal Reserve Bulletin 1168 (1993). in any particular combination of these activities. In 22. Specifically, Columbus Protestant believes that Banc One this regard, Banc One CDC could initiate or termi- misrepresented a loan commitment as a completed financing and incorrectly characterized a warehouse used as a transitional housing nate any or all of the activities identified in the facility for which Bank One-Columbus provided financing as a mixedapplication consistent with this approval. Columbus use facility. In addition, this protestant implies that it was misleading Protestant also alleges that Banc One CDC has not for Banc One to state that a nonprofit limited partnership is the owner of the warehouse, because the partnership's limited partners are for-profit entities. Columbus Protestant also claims that Banc One provided an incomplete and misleading description of the financing that Bank One-Columbus provided to the 1-670 Corridor Development 20. 48 Federal Register 23,531 (1983); Letter from William Wiles to Corporation ("1-670 CDC") for an acquisition of land in the 1-670 all Federal Reserve Banks, dated June 25, 1979 (BHC-79-180). Corridor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 Federal Reserve Bulletin • May 1994 D. Conclusion Regarding Convenience and By order of the Board of Governors, effective Needs Factors March 28, 1994. The Board has carefully considered all of the facts of Voting for this action: Chairman Greenspan and Governors record, including the comments filed in this case, in Kelley, La Ware, Lindsey, and Phillips. reviewing the convenience and needs factors under the BHC Act. Based on a review of the entire record of WILLIAM W. WILES performance, including information provided by com- Secretary of the Board menters opposing the proposal and the CRA performance examinations by the banks' primary regulators, Pacific Rim Bancorporation the Board believes that the efforts of Banc One and San Francisco, California Capital to help meet the credit needs of all segments of the communities served by their subsidiary banks, Order Approving Formation of a Bank Holding including low- and moderate-income neighborhoods, Company are consistent with approval, and that the comments submitted in this application do not raise issues that Pacific Rim Bancorporation, San Francisco, California warrant a denial of the application. The Board con- ("Pacific Rim"), has applied under section 3(a)(1) of cludes that convenience and needs considerations, the Bank Holding Company Act, 12 U.S.C. including the CRA performance records of the compa- § 1842(a)(1) ("BHC Act"), to acquire all of the voting nies and banks involved in these proposals, are con- shares of Golden Gate Bank, San Francisco, Califorsistent with approval of these applications. nia ("Bank"), and thereby become a bank holding Based on the foregoing, including the commitments company. by Banc One in this application and in related corre- Notice of the application, affording interested perspondence, and in light of all the facts of record, the sons an opportunity to submit comments, has been Board has determined that this application should be, published (58 Federal Register 54,359 (1993)). The and hereby is, approved. The Board's approval is time for filing comments has expired, and the Board specifically conditioned upon compliance by Banc One has considered the application and all comments rewith all commitments made in connection with this ceived in light of the factors set forth in section 3(c) of application as well as the conditions discussed in this the BHC Act. order. The commitments and conditions relied on by Pacific Rim is a non-operating company formed for the Board in reaching this decision are deemed to be the purpose of acquiring Bank. Bank is the 202nd conditions imposed in writing by the Board in connec- largest commercial banking organization in California, tion with its findings and decision, and as such may be controlling deposits of approximately $76.5 million, enforced in proceedings under applicable law. This representing less than 1 percent of total deposits in approval is also conditioned upon Banc One receiving commercial banks in the state.1 Pacific Rim and Bank all necessary Federal and state approvals. do not compete directly in any banking market. Ac- This acquisition should not be consummated before cordingly, based on all the facts of record in this case, the thirtieth calendar day following the effective date consummation of this proposal would not have a of this order, or later than three months following the significantly adverse effect on competition or the coneffective date of this order, unless such period is centration of banking resources in any relevant bankextended for good cause by the Board or the Federal ing market. Reserve Bank of Cleveland, acting pursuant to dele- In reviewing an application under section 3 of the gated authority. BHC Act, the Board also is required to consider the financial and managerial resources and future prospects of the companies and banks involved, the convenience and needs of the community to be The loan commitment that Banc One characterized as a financing served, and other supervisory factors. The record in and that Protestant accurately noted was a loan commitment ulti- this case indicates that Pacific Rim has committed to mately resulted in a loan being closed by Bank One-Columbus. In provide substantial additional capital to Bank, and, addition, the information submitted by Banc One regarding the warehouse identified by Protestant stated that the second floor of the upon consummation, Pacific Rim and Bank will meet warehouse was being used for transitional housing and that the all applicable regulatory capital requirements. In partnership that owned the structure had been unsuccessful in finding light of these and other facts of record, including a commercial tenant for the first floor of the warehouse. The record also shows that Banc One accurately characterized a short-term loan and a letter of credit issued in connection with the 1-670 CDC's acquisition of land as a "credit relationship designed to facilitate land acquisition and development." 1. State data are as of June 30, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 447 commitments made by the principals of Pacific Rim Orders Issued Under Section 4 of the Bank and related parties, the Board concludes that the Holding Company Act financial and managerial resources and future prospects of Pacific Rim and Bank, and the convenience Cardinal Bancshares, Inc. and needs and other supervisory factors that the Lexington, Kentucky Board is required to consider under section 3 of the BHC Act, are consistent with approval of this pro- Order Approving an Application to Engage in posal. Securities Brokerage Activities and to Act as In considering the factors relating to the conve- ' 'Riskless Principal'' nience and needs of the community to be served, the Board has reviewed Bank's record of performance Cardinal Bancshares, Inc., Lexington, Kentucky under the Community Reinvestment Act, 12 U.S.C. ("Applicant"), a bank holding company within the § 2901 et seq. ("CRA"). Bank received a "needs to meaning of the Bank Holding Company Act ("BHC improve" rating from its primary federal regulator, Act"), has applied pursuant to section 4(c)(8) of the the Federal Deposit Insurance Corporation BHC Act (12 U.S.C. § 1843(c)(8)) and section ("FDIC"), at its most recent examination for CRA 225.23(a)(3) of the Board's Regulation Y (12 C.F.R. performance, as of November 1991. The Board notes 225.23(a)(3)) to engage through its indirect subsidiary, that Bank will be under new ownership as a result of Mutual Service Corporation, Somerset, Kentucky this proposal and that Pacific Rim has committed to ("Company"), in securities brokerage activities purfully implement a number of steps put in place by suant to section 225.25(b)(15) of Regulation Y Bank to address specific deficiencies identified by the (12 C.F.R. 225.25(b)(15)), and in buying and selling FDIC examiners, including expanding Bank's delin- securities on the order of investors as "riskless prineated community and increasing outreach efforts cipal." Applicant proposes that Company enter into a through lending to, and other funding of, local com- joint venture arrangement with Compulife Investor munity groups. The FDIC has recently reviewed Services, Inc., Richmond, Virginia ("Compulife"), these steps and concluded that Bank has made satiswhereby Company and Compulife will conduct the factory progress in addressing the areas of weakproposed activities at branches of Applicant's thrift nesses identified in the examination. subsidiary, Mutual Federal Savings Bank, Somerset, Based on the foregoing and all the facts of record, Kentucky ("Mutual Thrift").1 the Board has determined that the application should Notice of the application, affording interested perbe, and hereby is, approved. The Board's approval is sons an opportunity to submit comments, has been specifically conditioned upon compliance with all the published (59 Federal Register 8627 (1994)). The time commitments made by Pacific Rim, including com- for filing comments has expired, and the Board has mitments made by the principals of Pacific Rim and considered the application and all comments received related parties, in connection with this application. in light of the factors set forth in section 4(c)(8) of the For purposes of this action, the commitments and BHC Act. conditions relied upon by the Board in reaching its Applicant, with approximately $482.1 million in decision are deemed to be conditions imposed in total consolidated assets, operates three subsidiary writing by the Board in connection with its findings banks and two savings associations in Kentucky.2 and decision, and, as such, may be enforced in Applicant also engages directly and through subsidiarproceedings under applicable law. ies in permissible nonbanking activities. Compulife This transaction shall not be consummated before currently engages in securities brokerage activities and the thirtieth calendar day following the effective date buying and selling securities on the order of investors of this order, or later than three months after the as a "riskless principal." effective date of this order, unless such period is The Board previously has determined by regulation extended for good cause by the Federal Reserve Bank that engaging in securities brokerage services is an of San Francisco, pursuant to delegated authority. activity that is closely related to banking and permis- By order of the Board of Governors, effective sible for bank holding companies under section 4(c)(8) March 30, 1994. of the BHC Act.3 Applicant has committed that Company will conduct these activities in accordance with Voting for this action: Chairman Greenspan and Governors Kelley, La Ware, Lindsey, and Phillips. 1. Company is a direct subsidiary of Mutual Thrift. WILLIAM W. WILES 2. Asset data are as of December 31, 1993. Secretary of the Board 3. See 12 C.F.R. 225.25(b)(15). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 Federal Reserve Bulletin • May 1994 the limitations imposed by section 225.25(b)(15) of In prior decisions, the Board has expressed concern Regulation Y. that joint ventures could potentially lead to a matrix of "Riskless principal" is the term used in the securi- relationships between co-venturers and their affiliates ties business to refer to a transaction in which a that could break down the legally mandated separation broker-dealer, after receiving an order to buy (or sell) of banking and commerce, create the possibility of a security from a customer, purchases (or sells) the conflicts of interests and other adverse effects that the security for its own account to offset a contemporane- BHC Act was designed to prevent, or impair or give ous sale to (or purchase from) the customer.4 "Risk- the appearance of impairing the ability of the banking less principal" transactions are understood in the organization to function effectively as an independent industry to include only transactions in the secondary and impartial provider of credit.8 Further, joint venmarket. Thus, Applicant proposes that Company tures must be carefully analyzed for any possible would not act as a "riskless principal" in selling adverse effects on competition and on the financial securities at the order of a customer that is the issuer condition of the banking organization involved in the of the securities to be sold or in any transaction where proposal.9 Company has a contractual agreement to place the Applicant proposes to conduct the proposed activisecurities as agent of the issuer. Company also would ties through a joint venture arrangement with Compunot act as a "riskless principal" in any transaction life whereby joint employees of Company and Cominvolving a security for which it makes a market. pulife will conduct the proposed activities at branches The Board previously has determined by Order that, of Mutual Thrift.10 Applicant also has entered into subject to prudential limitations that address the po- certain commitments previously relied on by the tential for conflicts of interests, unsound banking Board to address issues raised by joint venture propractices, or other adverse effects, the proposed risk- posals.11 Based on these and other commitments made less principal activities are so closely related to banking as to be a proper incident thereto within the meaning of section 4(c)(8) of the BHC Act.5 The Board order of a customer that is the issuer of the securities to be sold, will not act as "riskless principal" in any transaction involving a security also previously has determined that purchasing and for which it makes a market, nor hold itself out as making a market in selling securities on the order of investors as a "risk- the securities that it buys and sells as a "riskless principal." Moreover, Company will not engage in "riskless principal" transactions on less principal" does not constitute underwriting and behalf of any foreign affiliates that engage in securities dealing dealing in securities for purposes of section 20 of the activities outside the United States, and will not act as "riskless Glass-Steagall Act, and that revenue derived from this principal" for registered investment company securities. In addition, Company will not act as a "riskless principal" with respect to any activity is not subject to the 10 percent revenue securities of investment companies that are advised by Applicant or limitation on bank-ineligible securities underwriting any of its affiliates. and dealing.6 Applicant has committed that Company 8. See, e.g., The Fuji Bank, Limited, 75 Federal Reserve Bulletin 577 (1989); Amsterdam-Rotterdam Bank, N.V., 70 Federal Reserve will conduct its "riskless principal" activities using Bulletin 835 (1984). the same methods and procedures, and subject to the 9. See id. same prudential limitations, established by the Board 10. The Board previously has expressed concern over joint ventures involving a bank holding company and a firm engaged in securities in the Bankers Trust Order and the J.P. Morgan activities that are impermissible for a bank holding company because Order, including the comprehensive framework of such joint ventures have the potential for the mingling of permissible and impermissible securities activities. See The Chuo Trust and restrictions designed to avoid potential conflicts of Banking Company, Limited, 78 Federal Reserve Bulletin 446 (1992). interests, unsound banking practices, and other ad- In this case, however, Compulife engages only in activities that are verse effects imposed by the Board in connection with permissible for bank holding companies under the BHC Act and underwriting and dealing in securities.7 Applicant has committed to cease engaging in the proposed activities if Compulife or its affiliates engage in any securities activity that is impermissible for a state member bank under the Glass-Steagall Act, or any activity that is impermissible under the BHC Act. 11. In particular, Applicant has committed that: 4. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R. (1) The proposed joint venture will not engage in any additional 240.1Ob-10(a)(8)(i). activities without Applicant's knowledge and consent, as well as 5. See Bankers Trust New York Corporation, 75 Federal Reserve prior authorization of the Federal Reserve System; Bulletin 829 (1989) ("Bankers Trust Order"); J.P. Morgan & Com- (2) Applicant will not solicit business on behalf of Compulife; and pany Incorporated, 76 Federal Reserve Bulletin 26 (1990) ("7.P. (3) Compulife, Applicant, and Company do not currently have or Morgan Order"). expect to have any other significant relationships other than the 6. See Bankers Trust Order. proposed joint venture. 7. See J.P. Morgan Order and Bankers Trust Order. The prudential limitations detailed more fully in those Orders require, among other Furthermore, Applicant and its subsidiaries will act at all times on things, that in conducting the proposed "riskless principal" activities, an arm's-length basis in deciding whether to extend credit to Compu- Company will maintain specific records that will clearly identify all life or Compulife's competitors, and Applicant and its banking sub- "riskless principal" transactions, and Company will not engage in any sidiaries will not take into account the fact that a potential borrower "riskless principal" transactions for any securities carried in its could be a competitor of the joint venture in determining whether to inventory. When acting as a "riskless principal," Company will extend credit to that borrower. Applicant also has committed that the engage only in transactions in the secondary market, and not at the proposed joint venture will observe the anti-tying provisions of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 449 by Applicant, the Board believes that the structure of These commitments and conditions shall be deemed to the joint venture in this case is consistent with the be conditions imposed in writing by the Board in provisions of section 4 of the BHC Act and prior connection with its findings and decisions, and, as Board cases. such, may be enforced in proceedings under applicable In order to approve this application, the Board also law. is required to determine that the performance of the This transaction shall not be consummated later proposed activities by Applicant can reasonably be than three months after the effective date of this order, expected to produce benefits to the public that would unless such period is extended for good cause by the outweigh possible adverse effects under the proper Board or by the Federal Reserve Bank of Cleveland, incident to banking standard of section 4(c)(8) of the pursuant to delegated authority. BHC Act.12 By order of the Board of Governors, effective Under the framework established in this and prior March 30, 1994. Board decisions, consummation of this proposal is not likely to result in any significantly adverse effects, Voting for this action: Chairman Greenspan and Governors such as an undue concentration of resources, de- Kelley, La Ware, Lindsey, and Phillips. creased or unfair competition, conflicts of interests, or unsound banking practices. Moreover, the Board has WILLIAM W. WILES determined that performance of the proposed activi- Secretary of the Board ties by Applicant can reasonably be expected to produce public benefits that would outweigh any adverse First Chicago Corporation effects under the proper incident to banking standard Chicago, Illinois of section 4(c)(8) of the BHC Act. In every case involving a nonbanking acquisition by Order Approving Application to Engage De Novo in a bank holding company under section 4 of the BHC Underwriting and Dealing in All Types of Debt Act, the Board considers the financial condition and Securities on a Limited Basis, and Certain Other resources of Applicant and its subsidiaries and the effect of the transaction on these resources.13 Based Securities- and Derivatives-Related Activities on the facts of this case, the Board concludes that First Chicago Corporation, Chicago, Illinois ("First financial considerations are consistent with approval Chicago"), a bank holding company within the meanof this application. The managerial resources of Aping of the Bank Holding Company Act ("BHC Act"), plicant also are consistent with approval. has applied under section 4(c)(8) of the BHC Act Based on the foregoing and all the facts of record, (12 U.S.C. § 1843(c)(8)) and section 225.23(a) of the the Board has determined to, and hereby does, ap- Board's Regulation Y (12 C.F.R. 225.23(a)) to engage prove the application subject to the terms and condide novo through its wholly owned subsidiary, First tions set forth in this order, and in the Board regula- Chicago Capital Markets, Inc., Chicago, Illinois tions and orders noted above. The Board's ("Company"), in the following nonbanking activities: determination also is subject to all the terms and (1) Underwriting and dealing in, to a limited extent, conditions set forth in its Regulation Y, including all types of debt securities, including sovereign debt those in sections 225.4(d) and 225.23(b), and to the securities, corporate debt securities, convertible Board's authority to require modification or terminadebt securities, and debt securities issued by a trust tion of the activities of a bank holding company or any or other vehicle secured by or representing interests of its subsidiaries as the Board finds necessary to in debt obligations ("bank-ineligible securities");1 assure compliance with, and to prevent evasion of, the (2) Acting as agent in the private placement of all provisions of the BHC Act, and the Board's regulatypes of securities, and providing related advisory tions and orders issued thereunder. The Board's deciservices; sion is specifically conditioned on compliance with all the commitments made in this application, including (3) Purchasing and selling all types of securities as a the commitments discussed in this order and the "riskless principal" on the order of customers; conditions set forth in the Board orders noted above. 1. Company would not underwrite or deal in any securities issued by Bank Holding Company Act Amendments of 1970 and will be treated an open-end investment company. In addition, Company would not as an affiliate for purposes of section 23A and section 23B of the underwrite or deal in any convertible debt securities unless, on the Federal Reserve Act (12 U.S.C. §§ 371c and 371c-l). date the securities are issued, the conversion price is greater than 115 12. 12 U.S.C. § 1843(c)(8). percent of the market price of the equity security into which the debt 13. See 12 C.F.R. 225.25. security is convertible. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 Federal Reserve Bulletin • May 1994 (4) Providing full-service securities brokerage ser- in previous decisions to address the potential for vices, pursuant to section 225.25(b)(15) of Regula- conflicts of interests, unsound banking practices, or tion Y; and other adverse effects, the proposed underwriting and (5) Providing financial and transaction advice re- dealing activities involving bank-ineligible securities garding the structuring and arranging of swaps, are so closely related to banking as to be proper caps, and similar transactions relating to interest incidents thereto within the meaning of section rates, currency exchange rates or prices, and eco- 4(c)(8) of the BHC Act.4 First Chicago has commitnomic and financial indices, and similar transac- ted that Company will conduct the proposed undertions, pursuant to section 225.25(b)(4)(vi)(A)(2) of writing and dealing activities using the same methods Regulation Y. and procedures, and subject to the same prudential limitations, as were established by the Board in the First Chicago seeks approval for Company to con- Section 20 Orders and other previous cases.5 duct the proposed activities throughout the United The Board also has previously determined that the States. conduct of the proposed underwriting and dealing Notice of the application, affording interested per- activities is consistent with section 20 of the Glasssons an opportunity to submit comments on the pro- Steagall Act (12 U.S.C. § 377), provided that the posal, has been published (59 Federal Register 9215, company engaged in the underwriting and dealing 10,385 (1994)). The time for filing comments has ex- activities derives no more than 10 percent of its total pired, and the Board has considered the application gross revenue from underwriting and dealing in bankand all comments received in light of the factors set forth in section 4(c)(8) of the BHC Act. First Chicago, with total consolidated assets of $52.6 billion, is the eleventh largest commercial banking organization in the United States.2 First Chicago 4. See Canadian Imperial Bank of Commerce, et al., 76 Federal Reserve Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., operates five bank subsidiaries in Illinois, Wisconsin, 75 Federal Reserve Bulletin 192 (1989), affd sub nom. Securities and Delaware, and engages through its subsidiaries in Industries Ass'n v. Board of Governors of the Federal Reserve a broad range of permissible nonbanking activities in System, 900 F.2d 360 (D.C. Cir. 1990); Citicorp, et al., 73 Federal Reserve Bulletin 473 (1987), ajjfd sub nom. Securities Industry Ass'n the United States. Company currently is engaged in v. Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d limited bank-ineligible securities underwriting and Cir. 1988), cert, den., 486 U.S. 1059 (1988) (collectively, "Section 20 dealing activities that are permissible under section 20 Orders"). 5. First Chicago has proposed that First Chicago Capital Markets of the Glass-Steagall Act (12 U.S.C. § 377).3 Com- Asia, Limited ("FCCMA"), an indirect foreign subsidiary of The First pany is, and will continue to be, a broker-dealer National Bank of Chicago, be permitted to act as agent for Company, registered with the Securities and Exchange Commis- and to engage in marketing activities on behalf of Company, outside the United States, in connection with the purchase and sale of sion ("SEC") and a member of the National Associa- bank-eligible securities. First Chicago has stated that FCCMA is a tion of Securities Dealers, Inc. ("NASD"). Accord- corporation organized under the laws of Hong Kong that operates in accordance with the Board's Regulation K (12 C.F.R. Part 211). ingly, Company is subject to the record-keeping and The proposed agency and marketing activities will be conducted reporting obligations, fiduciary standards, and other only in connection with securities that state member banks are requirements of the Securities Exchange Act of 1934 authorized to underwrite and deal in under sections 5(c) and 16 of the Glass-Steagall Act (12 U.S.C. §§ 335 and 24(7)). In addition, the (15 U.S.C. § 78a et seq.), the SEC, and the NASD. proposed activities will be conducted in such a manner as not to undermine the operational separation between Company and its banking affiliates. First Chicago has committed that Company will Underwriting and Dealing Activities remain separately incorporated, capitalized, and funded, and will be operationally distinct from its bank affiliates, and that there will be no employees in common between Company and any of its bank affiliates The Board has previously determined that, subject to or their subsidiaries. First Chicago also has committed that Comthe prudential framework of limitations established pany's arrangements to sell bank-eligible securities through FCCMA will not be an exclusive arrangement. In other words, Company will sell such securities both directly and through other brokers, and FCCMA will sell such securities underwritten or dealt in by other 2. Asset data are as of December 31, 1993. broker-dealers. The Board also notes that Company's role in under- 3. In particular, Company has authority to underwrite and deal in, writing or dealing in the securities brokered by FCCMA would be fully to a limited extent, certain municipal revenue bonds, 1-4 family disclosed to FCCMA's brokerage customers, and such brokerage mortgage-related securities, commercial paper, and consumer receiv- transactions would be conducted on an arm's length basis. able-related securities. In addition, Company is authorized to under- The Board has previously determined that, subject to similar write and deal in securities that state member banks are permitted to limitations, the conduct of marketing activities with respect to bankunderwrite and deal in under sections 5(c) and 16 of the Glass-Steagall eligible securities by a bank or its subsidiary on behalf of a section 20 Act (12 U.S.C. §§ 335 and 24(7)) ("bank-eligible securities"), pursu- affiliate would not contravene the policies underlying the section 20 ant to section 225.25(b)(16) of Regulation Y (12 C.F.R. 225.25(b)(16)), prudential framework, and would be consistent with the Glassand to conduct activities that are necessary incidents to its underwrit- Steagall Act and the BHC Act. See Chemical Banking Corporation, 80 ing and dealing activities. See First Chicago Corporation, 74 Federal Federal Reserve Bulletin 49 (1994); BankAmerica Corporation, 79 Reserve Bulletin 706 (1988). Federal Reserve Bulletin 1163 (1993). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 451 ineligible securities over any two-year period.6 First Thus, Company would not act as a riskless principal in Chicago has committed that Company will conduct selling securities at the order of a customer that is the its underwriting and dealing activities with respect to issuer of the securities to be sold or in any transaction bank-ineligible securities subject to this 10 percent in which Company has a contractual agreement to revenue test.7 place the securities as agent of the issuer. Company also would not act as a riskless principal in any Private Placement and "Riskless Principal" transaction involving a security for which it makes a Activities market. The Board has previously determined that, subject Private placement involves the placement of new to prudential limitations that address the potential for securities with a limited number of sophisticated pur- conflicts of interests, unsound banking practices, or chasers in a nonpublic offering. A financial intermedi- other adverse effects, the proposed private placement ary in a private placement transaction acts solely as an and riskless principal activities are so closely related agent for the issuer in soliciting purchasers, and does to banking as to be proper incidents thereto within the not purchase the securities and attempt to resell them. meaning of section 4(c)(8) of the BHC Act.9 The Board Securities that are privately placed are not subject to has also previously determined that acting as agent in the registration requirements of the Securities Act of the private placement of securities, and purchasing 1933, and are offered only to financially sophisticated and selling securities on the order of investors as a institutions and individuals and not to the public. riskless principal, do not constitute underwriting or Company would not privately place registered securi- dealing in securities for purposes of section 20 of the ties and would only place securities with customers Glass-Steagall Act, and, accordingly, that revenue who qualify as accredited investors. derived from these activities is not subject to the "Riskless principal" is the term used in the securi- 10 percent revenue limitation on bank-ineligible securities underwriting and dealing.10 First Chicago has ties business to refer to a transaction in which a committed that Company will conduct its private broker-dealer, after receiving an order to buy (or sell) placement and riskless principal activities using the a security from a customer, purchases (or sells) the same methods and procedures, and subject to the security for its own account to offset a contemporaneous sale to (or purchase from) the customer.8 Riskless same prudential limitations, as were established by the Board in the Bankers Trust Order, the J.P. Morgan principal transactions are understood in the industry to Order, and other orders approving the conduct of include only transactions in the secondary market. private placement and riskless principal activities.11 These methods, procedures, and prudential limitations include the comprehensive framework of restrictions 6. See Section 20 Orders. Compliance with the 10 percent revenue designed to avoid potential conflicts of interests, unlimitation shall be calculated in accordance with the method stated in the Section 20 Orders, as modified by the Order Approving Modifica- sound banking practices, and other adverse effects tions to the Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989), imposed by the Board in connection with underwriting the Order Approving Modifications to the Section 20 Orders, 79 and dealing in securities. Federal Reserve Bulletin 226 (1993), and the Supplement to Order Approving Modifications to Section 20 Orders, 79 Federal Reserve Bulletin 360 (1993) (collectively, "Modification Orders"). In this regard, the Board notes that First Chicago has not adopted the Full-Service Brokerage Activities Board's alternative indexed revenue test to measure compliance with the 10 percent limitation on bank-ineligible securities activities, and, The Board has previously determined by regulation absent such election, will continue to employ the Board's original 10 percent revenue standard. that full-service brokerage activities, the provision of 7. First Chicago also has proposed that Company engage in certain hedging and advisory activities in connection with the proposed underwriting and dealing activities. Advice rendered in connection with these activities could include advice to issuers regarding market 9. See J.P. Morgan & Company Incorporated, 76 Federal Reserve conditions and the pricing of an issue, as well as advice to potential Bulletin 26 (1990) ("J.P. Morgan Order"); Bankers Trust New York purchasers consisting of credit and market risk analysis. First Chicago Corporation, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust maintains that these additional activities are incidental to the proposed Order"). underwriting and dealing activities. In this regard, the Board notes 10. See Bankers Trust Order. that Company may provide services that are necessary incidents to 11. With respect to Company's riskless principal activities, First the proposed underwriting and dealing activities, provided that any Chicago has proposed that Company be permitted to enter bid or ask such activities are treated as part of the bank-ineligible securities quotations, or publish "offering wanted" or "bid wanted" notices, on activities unless Company has received specific approval under sec- trading systems other than an exchange or the NASDAQ, provided tion 4(c)(8) of the BHC Act to conduct the activities independently. that Company not enter price quotations on different sides of the Until such approval is obtained, any revenues from the incidental market for a particular security without a separation of at least two activities must be counted as ineligible revenues subject to the business days between such quotations. The Board has previously 10 percent revenue limitation set forth in the Section 20 Orders, as permitted this practice in connection with riskless principal activities. modified by the Modification Orders. See Dauphin Deposit Corporation, 11 Federal Reserve Bulletin 672 8. See 17 C.F.R. 249.10b-10(a)(8)(i). (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 Federal Reserve Bulletin • May 1994 securities brokerage and investment advisory services In order to approve this application, the Board also on a combined basis, are closely related to banking must determine that the performance of the proposed within the meaning of the BHC Act.12 First Chicago activities by Company "can reasonably be expected has committed that Company will conduct these bro- to produce benefits to the public . . . that outweigh kerage activities in accordance with the limitations set possible adverse effects, such as undue concentraforth in Regulation Y.13 tion of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices." Derivatives Advisory Activities 12 U.S.C. § 1843(c)(8). Under the framework and conditions established in this and prior decisions, The Board has previously determined by regulation consummation of this proposal is not likely to result that the provision to sophisticated customers of "fi- in any significant adverse effects, such as undue nancial and transaction advice regarding the structur- concentration of resources, decreased or unfair coming and arranging of swaps, caps, and similar transac- petition, conflicts of interests, or unsound banking tions relating to interest rates, currency exchange practices. Moreover, the Board expects that the rates or prices, and economic and financial indices, de novo entry of Company into the market for the and similar transactions", is an activity closely related proposed services in the United States would provide to banking within the meaning of the BHC Act.14 added convenience to First Chicago's customers, and would increase the level of competition among Other Considerations existing providers of these services. For these reasons, the Board has determined that the performance In every case under section 4 of the BHC Act, the of the proposed activities by First Chicago can Board considers the financial condition and resources reasonably be expected to produce public benefits of the applicant and its subsidiaries and the effect of that outweigh possible adverse effects under the the transaction on those resources.15 proper incident to banking standard of section 4(c)(8) The Board has reviewed the capitalization of First of the BHC Act. Chicago and Company in accordance with the stan- Accordingly, and for the reasons set forth in the dards set forth in the Section 20 Orders, and finds the Section 20 Orders, the Board has concluded that capitalization of each to be consistent with approval of First Chicago's proposal to engage through Company this proposal. With respect to the capitalization of in the proposed activities is consistent with the Company, this determination is based upon all the Glass-Steagall Act, and that the proposed activities facts of record, including First Chicago's projections are so closely related to banking as to be proper with respect to Company's equity capital and the incidents thereto within the meaning of section volume of Company's underwriting and dealing activ- 4(c)(8) of the BHC Act, provided that First Chicago ities in bank-ineligible securities. On the basis of all the limits Company's activities as specified in this order facts of record, including the foregoing, the Board has and the Section 20 Orders, as modified by the Modconcluded that financial and managerial considerations ification Orders. are consistent with approval. On the basis of the foregoing and all the facts of record, including the commitments furnished by First Chicago, the Board has determined that the applica- 12. See 12 C.F.R. 225.25(b)(15)(ii). 13. See 12 C.F.R. 225.25(b)(4) and (b)(15). In order to address tion should be, and hereby is, approved, subject to all potential conflicts of interests arising from Company's conduct of the terms and conditions of this order and the Section these brokerage activities together with underwriting and dealing in 20 Orders, as modified by the Modification Orders. bank-ineligible securities, First Chicago has committed that whenever Company provides full-service brokerage services with respect to The Board's approval of this proposal extends only to ineligible securities that it holds as principal, Company will inform its activities conducted within the limitations of those customers at the commencement of the relationship that, as a general orders and this order, including the Board's reservamatter, Company may be a principal or may be engaged in underwriting with respect to, or may purchase from an affiliate, those securities tion of authority to establish additional limitations to for which brokerage and advisory services are provided. In addition, ensure that Company's activities are consistent with at the time any brokerage order is taken, the customer will be safety and soundness, conflicts of interests, and other informed (usually orally) whether Company is acting as agent or principal with respect to a security. Confirmations sent to customers relevant considerations under the BHC Act. Underalso will state whether Company is acting as agent or principal. See writing and dealing in any manner other than as PNC Financial Corp., 75 Federal Reserve Bulletin 396 (1989). approved in this order and the Section 20 Orders is not 14. See 12 C.F.R. 225.25(b)(4)(vi)(A)(2). See also Signet Banking Corporation, 73 Federal Reserve Bulletin 59 (1987). within the scope of the Board's approval and is not 15. See 12 C.F.R. 225.24. See also The Fuji Bank, Limited, 75 authorized for Company. Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155 (1987). Included among these conditions is that Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 453 may not commence the proposed underwriting and By order of the Board of Governors, effective dealing activities until the Board has determined that March 25, 1994. First Chicago and Company have established policies and procedures to ensure compliance with the re- Voting for this action: Chairman Greenspan and Governors quirements of this order, including computer, audit, Kelley, Lindsey, and Phillips. Absent and not voting: Governor LaWare. and accounting systems, internal risk management controls, and the necessary operational and manage- JENNIFER J. JOHNSON rial infrastructure. The Federal Reserve Bank of Associate Secretary of the Board Chicago has reviewed the operational and managerial infrastructure of Company, including its computer, Norwest Corporation audit, and accounting systems, and internal risk Minneapolis, Minnesota management procedures and controls. The Reserve Bank has determined that Company has established Order Approving the Acquisition of a Title Insurance an operational and managerial infrastructure for un- Agency derwriting and dealing in all types of debt securities that is adequate to ensure compliance with the re- Norwest Corporation, Minneapolis, Minnesota ("Norquirements of this order and the Section 20 Orders. west"), a bank holding company within the meaning of On the basis of the Reserve Bank's review and all the the Bank Holding Company Act ("BHC Act"), has facts of record, including the steps taken and the applied under section 4(c)(8) of the BHC Act policies and procedures implemented by First Chi- (12 U.S.C. § 1843(c)(8)) and section 225.23(a) of the cago and by Company in connection with this appli- Board's Regulation Y (12 C.F.R. 225.23(a)) to acquire cation and in response to the infrastructure review, Double Eagle Financial Corporation, Phoenix, Arithe Board has determined that Company has in place zona ("Double Eagle"), and Double Eagle's subsidthe managerial and operational infrastructure and iary, United Title Agency of Arizona, Phoenix, Ariother policies and procedures necessary to comply zona ("United Title"), and thereby engage in title with the requirements of the Section 20 Orders and insurance agency and real estate settlement activities. this order. Accordingly, Company may commence These activities will be performed in 36 offices in underwriting and dealing in all types of debt securi- Arizona. ties as permitted by, and subject to the conditions of, Notice of the application, affording interested perthis order. sons an opportunity to submit comments, has been The Board's determination also is subject to all the published (59 Federal Register 5607 (1994)). The time terms and conditions set forth in Regulation Y, includfor filing comments has expired, and the Board has ing those in sections 225.4(d) and 225.23(b) of Regulaconsidered the application and all comments received tion Y, and to the Board's authority to require such in light of the factors set forth in section 4(c)(8) of the modification or termination of the activities of a bank BHC Act. holding company or any of its subsidiaries as the Norwest, with total consolidated assets of Board finds necessary to ensure compliance with, and $50.8 billion, is the largest commercial banking orgato prevent evasion of, the provisions of the BHC Act nization in Minnesota.1 Norwest controls 113 bankand the Board's regulations and orders issued thereing subsidiaries that operate in 15 states and owns a under. The Board's decision is specifically conditioned number of subsidiaries engaged in nonbanking activon compliance with all the commitments made in ities. connection with this application, including the com- The Board previously has determined that Norwest mitments discussed in this order, and the conditions may engage in general insurance agency activities, set forth in this order and the above-noted Board including the sale as agent of title insurance, pursuant regulations and orders. These commitments and conto section 4(c)(8)(G) of the BHC Act ("exemption ditions are deemed to be conditions imposed in writing G").2 The Board also has concluded that real estate by the Board in connection with its findings and decision, and, as such, may be enforced in proceedings under applicable law. This transaction shall not be consummated later 1. Data are as of December 31, 1993. 2. Norwest Corporation, 76 Federal Reserve Bulletin 1058 (1990) than three months after the effective date of this order, ("Norwest/American Land Title")-, See First Wisconsin Corporation, unless such period is extended for good cause by the 75 Federal Reserve Bulletin 31 (1989); affd American Land Title Association v. Board of Governors, 892 F.2d 1059 (D.C. Cir. 1989). Board or by the Federal Reserve Bank of Chicago, The exemption, one of several specific exemptions (A through G) acting pursuant to delegated authority. enacted by Title VI of the Gara-St. Germain Depository Institutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 Federal Reserve Bulletin • May 1994 settlement services are closely related to banking, and In order to approve this proposal, the Board also Norwest proposes to conduct the same activities pre- must determine that the performance of the proposed viously approved by the Board.3 Norwest also has activities by Norwest can reasonably be expected to committed to conduct these activities under the same produce public benefits that would outweigh possible terms and subject to the same conditions as in the adverse efFects under the proper incident to banking previous approvals.4 Accordingly, the Board believes standard of section 4(c)(8) of the BHC Act. In this that the proposed real estate settlement services are regard, the Board has received a comment from Naactivities closely related to banking for purposes of tional Title Resource Agency ("National Title"), a section 4 of the BHC Act. title insurance and real estate settlement agency in In every case involving a nonbanking acquisition of Arizona, alleging that the proposal would have an a bank holding company under section 4 of the BHC adverse competitive effect in the markets for these Act, the Board considers the financial condition and services by eliminating the largest independent title resources of the applicant and its subsidiaries and the insurance agency in the state.6 effect of the transaction on these resources. Based on National Title's comments have been carefully rethe facts of this case, the financial and managerial viewed in light of all facts of record. Initially, the resources of Norwest and its subsidiaries are consis- Board notes Norwest does not currently provide title tent with approval.5 insurance agency and real estate settlement services in Arizona, and that the acquisition of United Title by Norwest will not change the number of competitors in Act of 1982 to the Garn Act's general prohibition on insurance the market for these services, or the concentration in activities by bank holding companies, authorizes those bank holding the market. In addition, there are numerous providers companies that engaged in insurance activities prior to 1971 with prior of real estate settlement services in the Phoenix area, Board approval, to engage, or control a company engaged in insurance agency activities. including both independent firms and firms associated 3. Norwest Corporation, 79 Federal Reserve Bulletin 517 (1993) with mortgage providers. Finally, as previously stated, ("Norwest/Community Guaranty'"); Norwest!American Land Title, Norwest has committed to advise all customers that supra. These real estate settlement services are: (1) Reviewing the status of the title in the title commitment, they are not required to purchase title insurance resolving any exceptions to the title, and reviewing the purchase services or real estate settlement services from Noragreement to identify any requirements in it in order to ensure compliance with them; west as a condition of making or fixing the consider- (2) Verifying the payment of existing loans secured by the real estate ation for a loan or of providing any insurance in and verifying the amount of and then calculating the pro rating of connection with the real estate transaction. Based on special assessments and taxes on the property; (3) Obtaining an updated title insurance commitment to the date of all facts of record, the Board concludes that the closing, preparing the required checks, deeds, affidavits, and obtaining any authorization letter needed; (4) Establishing a time and place for the closing, and ensuring that all parties properly execute all appropriate documents and meet all commitments; mission ("EEOC"), the federal agency authorized to adjudicate (5) Collecting and disbursing funds for the parties, holding funds in allegations of illegal discrimination in employment to provide approescrow pending satisfaction of certain commitments, preparing the priate relief if the allegations are substantiated. The EEOC has not HUD settlement statement, the deed of trust, mortgage notes, the determined at this stage of its review whether these allegations are Truth-in-Lending statement, and purchaser's affidavits; and supported by the facts. In connection with this application, Norwest (6) Recording all these documents as required under law. has committed that, upon the acquisition of United Title by Norwest, 4. Norwest has committed to advise its customers that they are not Norwest will implement its personnel policies and programs at United required to purchase its real estate settlement services in connection Title, including its affirmative action and equal opportunity programs. with the purchase of title insurance in a real estate transaction. Based on all facts of record, the Board concludes that these comments Norwest has further committed that it will not require its customers to do not warrant denial of this application. purchase its real estate settlement services in connection with a loan 6. National Title also believes that the proposal would have an origination. In addition, section 106 of the Bank Holding Company adverse effect on smaller mortgage bankers in direct competition with Act Amendments of 1970 generally would prohibit Norwest from tying Norwest for mortgage loans in the Phoenix area because Norwest will extensions of credit to the purchase of services from United Title. See acquire a database of mortgage customers referred to United Title. Norwest/Community Guaranty, supra; Norwest!American Land Title, United Title has stated that it does not manufacture a database or supra. customer list. Moreover, the title information that United Title 5. The Board received a comment from several organizations generates is from public records and would be identical to information (together "Community Forum") expressing concern that Norwest has that other title companies in the Phoenix market have available to not complied with its obligations under the Community Reinvestment them. In addition, Norwest has committed to advise all customers that Act ("CRA"). The Board previously has determined that the CRA by they are not required to purchase title insurance services or real estate its terms generally does not apply to applications by bank holding settlement services from Norwest as a condition of making or fixing companies to acquire nonbanking companies under section 4(c)(8) of the consideration for a loan or of providing any insurance in connecthe BHC Act. See The Mitsui Bank, Limited, 76 Federal Reserve tion with the real estate transaction. Bulletin 381 (1990). National Title also questions whether United Title will comply with Community Forum also has raised issues regarding the absence of Arizona's "controlled insurance" law which places percentage limits African-Americans and Hispanics in upper level management posi- on the amount of fees earned by title insurance agents if the agency is tions at United Title. United Title disputes that any illegal discrimi- providing title insurance for the benefit of a corporation controlling the nation has occurred. The Board notes that these allegations are agency. Ariz. Rev. Stat. Ann. § 20-1587 (1990). Norwest has commitcurrently under review by the Equal Employment Opportunity Com- ted to comply with this provision of Arizona law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 455 proposal is not likely to have a significantly adverse Board or by the Federal Reserve Bank of Minneapolis, effect on competition or to permit unfair competition. pursuant to delegated authority. For the reasons discussed above, and under the By order of the Board of Governors, effective framework and conditions established in this and prior March 30, 1994. decisions, consummation of this proposal is not likely to result in any significantly adverse effects, such as Voting for this action: Chairman Greenspan and Governors undue concentration of resources, decreased or unfair Kelley, La Ware, Lindsey, and Phillips. competition, conflicts of interest, or unsound banking practices. Moreover, consummation of the proposal WILLIAM W. WILES Secretary of the Board would provide added convenience to Norwest's customers. Accordingly, the Board has determined that Orders Issued Under Sections 3 and 4 of the the performance of the proposed activities by Norwest Bank Holding Company Act could reasonably be expected to produce public benefits that would outweigh possible adverse effects under the proper incident to banking standard of Norwest Corporation section 4(c)(8) of the BHC Act.7 Minneapolis, Minnesota Based on the foregoing and all the other facts of Order Approving the Acquisition of a Bank Holding record, the Board has determined to, and hereby does, Company approve the application subject to all of the terms and conditions set forth in this order, and in the above Norwest Corporation, Minneapolis, Minnesota ("Nornoted Board Orders that relate to these activities. The west"), a bank holding company within the meaning of Board's decision is specifically conditioned on complithe Bank Holding Company Act ("BHC Act") has ance with all of the commitments made in this appliapplied under section 3(a)(3) of the BHC Act cation, including the commitments discussed in this (12 U.S.C. § 1842(a)(3)) to acquire all the voting order and the conditions set forth in the orders disshares of Bank of Montana System ("BMS"), and cussed herein. The Board's determination is also subthereby indirectly acquire Bank of Montana, both of ject to all of the terms and conditions set forth in the Great Falls, Montana, Montana Bancsystem, Inc., and Board's Regulation Y, including those in sections Montana Bank, both of Billings, Montana.1 Norwest 225.4(d) and 225.23(b), and to the Board's authority to also has applied under section 4(c)(8) of the BHC Act require modification or termination of the activities of (12 U.S.C. § 1843(c)(8)) and section 225.23 of the a bank holding company or any of its subsidiaries as Board's Regulation Y (12 C.F.R. 225.23) to acquire a the Board finds necessary to assure compliance with, nonbanking subsidiary of BMS, Montana Agencies, and to prevent evasion of, the provisions of the BHC Great Falls, Montana, and thereby engage in general Act, and the Board's regulations and orders issued insurance agency activities, including the sale of fixed thereunder. For the purpose of this action, all of these annuities, pursuant to section 4(c)(8)(G) of the BHC commitments and conditions are deemed to be condi- Act and section 225.25(b)(8)(vii) of the Board's Regutions imposed in writing by the Board and, as such, lation Y (12 C.F.R. 225.25 (b)(8)(vii)). may be enforced in proceedings under applicable law. Notice of these applications, affording interested This transaction shall not be consummated later persons an opportunity to submit comments, has been than three months after the effective date of this order, published (58 Federal Register 60,025 (1993)). The unless such period is extended for good cause by the time for filing comments has expired, and the Board has considered the applications and all comments received in light of the factors set forth in sections 3 7. National Title has requested the Board hold public hearings on and 4 of the BHC Act. this application. The Board's rules provide that a hearing is required under section 4 of the BHC Act if there are disputed issues of material Norwest, with total consolidated assets of $50.8 bilfact that cannot be resolved in some other manner. In addition, the lion, operates 113 banks in 15 states. Norwest is the Board may, in its discretion, hold a public hearing or meeting on an second largest commercial banking organization in application to clarify factual issues related to the application and to provide an opportunity for testimony, if appropriate. 12 C.F.R. Montana, controlling approximately $717.2 million in 262.3(e) and 262.25(d). The Board has carefully considered this deposits, representing 10.9 percent of the deposits in request. In the Board's view, interested parties have had a sufficient opportunity to present written submissions, and have submitted substantial written comments that have been considered by the Board. On the basis of all facts of record, the Board has determined that a public hearing or public meeting is not necessary to clarify the factual record in this application, or otherwise warranted in this case. Accordingly, the request for a public hearing or public meeting on this 1. Norwest will establish a subsidiary, Norwest Merger Co., to application is hereby denied. merge with and into BMS with BMS as the surviving corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 Federal Reserve Bulletin • May 1994 commercial banks in the state.2 BMS, with total con- Competitive Considerations solidated assets of $797 million, is the third largest commercial banking organization in Montana, control- The BHC Act provides that the Board may not apling approximately $666 million in deposits, represent- prove a proposal submitted under section 3 of the ing 10.1 percent of deposits in commercial banks in the BHC Act if the proposal would result in a monopoly or state. Upon consummation of the proposal, Norwest the effect of the proposal would be substantially to would become the largest commercial banking organi- lessen competition in any relevant market. In this zation in Montana, controlling approximately $1.4 bil- regard, the Board has received comments from the lion in deposits, representing 21.1 percent of total Montana Independent Bankers ("MIB") that assert deposits in commercial banks in the state. that the relevant geographic market for analyzing the competitive effects of this proposal should be limited to a 50-mile area around the City of Great Falls Douglas Amendment Analysis ("Great Falls"),5 and that consummation of this proposal would substantially lessen competition for bank- Section 3(d) of the BHC Act ("Douglas Amend- ing services in this area. In previous cases, the Federal ment") prohibits a bank holding company from ac- Reserve Bank of Minneapolis ("Reserve Bank") has quiring a bank located outside of its home state delineated the relevant banking market to include six "unless the acquisition of . . . a State bank by an counties in northern Montana. MIB criticizes the out-of-State bank holding company is specifically Reserve Bank's delineated market as including comauthorized by the statute laws of the State in which munities well outside any commuting patterns or shop- [the] bank is located, by language to that effect and ping routines and encompasses an area that is not not merely by implication."3 For purposes of the homogeneous.6 In this light, MIB contends that banks Douglas Amendment, the home state of Norwest is located in isolated areas of the market as currently Minnesota. Bank of Montana and Montana Bank are delineated would be able to raise the price of services located in Montana. without fear of competition from competitors in Great Falls.7 The statute laws of Montana expressly permit a bank holding company located in a defined region that includes Minnesota to acquire banks in Montana The Great Falls Banking Market on a reciprocal basis.4 The Montana Commissioner of Financial Institutions has agreed with this conclu- The Board and the courts have found that the relevant sion. Based on a review of the relevant statutes, the banking market for analyzing the competitive effects Board has determined that its approval of this pro- of a proposal must reflect commercial and banking posal is not prohibited by the Douglas Amendment. realities and must consist of the local area where the Approval of the proposed transaction is conditioned, banks involved offer their services and where local however, upon Norwest receiving the necessary ap- customers can practicably turn for alternatives.8 The proval from the Montana bank commissioner. Board has also traditionally recognized that the appro- 5. This area would include Cascade County and portions of Cho- 2. All banking data are as of December 31, 1993, unless otherwise teau, Teton, Lewis and Clark Counties, all in Montana. According to noted. MIB, this area accurately reflects the boundaries of the primary 3. 12 U.S.C. § 1842(d). A bank holding company's home state is economic activity of Great Falls—grain farming—and takes into that state in which the operations of the bank holding company's account the limited economic and population growth in the area, banking subsidiaries were principally conducted on July 1, 1966, or including the limited expansion by depository institutions over the last the date on which the company became a bank holding company several years. whichever is later. The operations of a bank holding company are 6. MIB argues that banking services are local in nature and that considered principally conducted in that state in which the total customers would not travel over 100 miles from Great Falls to conduct deposits of all its banking subsidiaries are largest. their banking as the currently delineated geographic market would 4. The laws of Minnesota similarly authorize the acquisition of indicate. MIB also believes that the 1992 Department of Justice's in-state banking organizations by out-of-state holding companies Horizontal Merger Guidelines indicate that small business and indiwithin a defined region (that includes Montana) on a reciprocal basis. vidual borrowers are unlikely to seek credit beyond the county in See Mont. Code Ann. § 32-1-382(9) (1993); Minn. Stat. Ann. which they are located. § 48.92(7) (Supp. 1993). The bank commissioner of Minnesota has 7. MIB also contends that the elimination of a competitor in this concluded that the interstate statutes of Montana and Minnesota are area is contrary to the purpose of the Montana interstate banking reciprocal. Montana law also requires that the institution to be statute, which was to provide a variety of banking alternatives in acquired has been continuously operated for at least six years, and Montana. MIB notes that this proposal would result in less variety for that the acquisition does not exceed certain aggregate deposit levels Great Falls banking customers in terms of numbers of competitors and for deposits held by all insured Montana depository institutions and type of ownership (in-state or out-of-state) than in other Montana out-of-state bank holding companies. See Mont. Code Ann. § 32—1— cities, including some cities with smaller populations. 383 (1993). The record indicates that these requirements are met in this 8. See St. Joseph Valley Bank, 68 Federal Reserve Bulletin 673, 674 proposal. (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 457 priate product market for evaluating bank mergers and Residents of the Great Falls area and the northern acquisitions is the cluster of products (various kinds of counties also are well informed on the practicable credit) and services (such as checking accounts and alternatives for goods and services through commertrust administration) offered by banking institutions.9 cial advertising. For example, the circulation for the In 1990, the Reserve Bank conducted an investiga- Great Falls daily and Sunday newspaper extends to tion of the Great Falls area that included a field study over half the households in Glacier, Pondera, and and interviews with local bankers. The Reserve Bank Toole Counties. Businesses also advertise their prodalso conducted telephone surveys of individuals and ucts on three television channels and several radio small business customers for banking services in the stations in Great Falls that reach these northern coun- Great Falls area. In connection with this application, ties. the Reserve Bank has gathered a variety of updated Banking data in the Reserve Bank's study indicate data, including conducting interviews with representa- that residents in Glacier, Pondera, and Toole Counties tives of the Great Falls Chamber of Commerce, the rely on providers of banking services throughout the University of Montana, and the Great Falls Tribune. Great Falls banking market as reasonable alternatives The data collected from these investigations and to bank services in those counties. For example, other sources indicate that a number of geographic and 24 percent of the residents in these counties had either commercial factors tie the northern counties of Gla- a sole deposit account or a second deposit account in cier, Pondera, and Toole together in a Great Falls a bank outside their county of residence. In addition, banking market. For example, Great Falls is the larg- bankers interviewed by the Reserve Bank have conest population center in the area with a population of firmed that institutions within the Great Falls region, 55,097.10 It is the retail center for the Great Falls including Glacier, Pondera and Toole Counties, are in region, defined by the Montana Department of Com- competition with each other.12 These banks also regmerce to encompass a six-county area that includes ularly purchase the auto installment loans of individuthe northern counties of Glacier, Pondera, and als from auto dealers in these counties. Toole.11 In this regard, access to Great Falls is conve- After review of these data and the other facts of nient, and Great Falls has an indoor shopping mall record including MIB's comments, the Board believes with three large department stores and other establish- that the record indicates that customers in the Great ments as well as large food and retail goods discount Falls region, including customers in Glacier, Pondera, stores that attract customers from at least an 80-mile and Toole Counties, can turn to providers of banking radius. Great Falls also has a variety of restaurants services in Great Falls. In this light, the Board disand hotels, medical facilities and an airport servicing agrees with the contention that the geographic market major commercial airlines. The Reserve Bank's sur- in this case should be limited to a geographic area vey indicates that the typical resident of the outlying within a 50 mile radius of the city. Instead, based on all areas in the market travels to Great Falls weekly for the facts of record, including the comments and inforshopping. Data collected by a Great Falls newspaper mation provided by MIB and studies conducted by the indicate that, of the residents in this area living outside Reserve Bank, the Board concludes that the relevant of the county in which Great Falls is located, 57 geographic market for evaluating the competitive efpercent travel to Great Falls at least once a month and fects of this proposal in the Great Falls area should be that, on average, these residents travel to Great Falls defined as currently delineated: Cascade (which inapproximately three times per month. cludes the city of Great Falls), Teton, Judith Basin, Glacier, Toole, and Pondera Counties; and Fort Benton and Geraldine Division in Choteau County, all in 9. First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). As Montana. discussed more fully in that order, it is this cluster of products and services that, as a matter of trade reality, makes banking a distinct line of commerce, United States v. Philadelphia National Bank, 374 U.S. Competitive Effects in The Great Falls Banking 321, 357 (1963). This clustering facilitates the convenient access to Market these products and services, and vests the cluster with economic significance beyond the individual products and services that constitute the cluster. United States v. Phillipsburg National Bank, 399 U.S. Norwest is the third largest banking or thrift organiza- 350 (1969). The courts have continued to follow this position. United tion ("depository institution") in the Great Falls bank- States v. Central State Bank, 621 F.Supp. 1276 (W.D. Mich. 1985, affd per curiam, 817 F.2d 22 (6th Cir. 1987). ing market, controlling deposits of $118.8 million, 10. Population data are based on the 1990 Census. representing 11.9 percent of total deposits in deposi- 11. Retail sales data indicate that Great Falls is a significant retail center for the surrounding counties. For example, although data show comparable levels of per capita income in the six county Great Falls region, a significantly higher number of sales per capita occur in Cascade County, where Great Falls is located, than in the other 12. Three bankers from Great Falls indicated that their customers counties. include residents from Glacier, Pondera, and Toole Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 Federal Reserve Bulletin • May 1994 tory institutions in the market ("market deposits").13 Competitive Effects in Other Montana Banking BMS is the second largest depository institution in the Markets market, controlling deposits of $160.1 million representing 16.1 percent of market deposits. Upon con- Norwest and BMS also compete directly in the Helsummation of their proposal, Norwest would become ena, Billings, Butte and Lewistown banking markets, the largest depository institution in the market, con- all in Montana. In the Helena banking market, Nortrolling total deposits of $248.3 million, representing west is the second largest depository institution, con- 25.4 percent of market deposits. The Herfindahl- trolling deposits of $108.6 million, representing 25 per- Hirschman Index ("HHI") would increase 270 points cent of market deposits. BMS is the eighth largest to a level of 1522.14 Seventeen competitors would depository institution in the market, controlling deposremain in the market after consummation, including its of $19.6 million, representing 4.5 percent of market the second largest regional out-of-state bank holding deposits. Upon consummation of this proposal, Norcompany in Montana, which would control approxi- west would become the largest depository institution mately 24 percent of market deposits in the Great Falls in the Helena banking market, controlling deposits of banking market. In addition, the Board has considered $128.2 million, representing 29.6 percent in market the competitive influence of thrifts and credit unions. deposits. The HHI would increase by 226 points to a As in other cases, the Board also sought comments level of 1805 points. In light of the facts of record, from the United States Attorney General's Office, the including the number of competitors remaining in the Office of the Comptroller of the Currency ("OCC"), market, and the significant competitive presence of and the Federal Deposit Insurance Corporation credit unions in the market, which control approxi- ("FDIC") on the competitive effects of this proposal. mately 14.4 percent of market deposits, the Board The Attorney General, OCC, and FDIC have not concludes that the proposal would not result in signifobjected to consummation of the proposal or indicated icantly adverse competitive effects in this market. that the proposal would have any significantly adverse In order to mitigate the potential anticompetitive competitive effects in the Great Falls market or any effects in the Lewistown and Butte banking markets, relevant banking market in which Norwest and BMS Norwest has committed to divest the Bank of Montana compete. In light of the moderately concentrated branches located in Lewistown and Anaconda, and the nature of the market as measured by the HHI, the Montana Bank branch located in Butte. Norwest also number of competitors remaining in the market, and has committed that consummation of these divestiother facts of record, the Board concludes that con- tures would not exceed the levels of concentration summation of the proposal is not likely to result in any provided for in the Department of Justice Merger significantly adverse effect on competition in the Great Guidelines.16 Consummation of the proposal in the Falls banking market.15 significantly adverse effect on competition in that market. Norwest would become the second largest depository institution in the pro- 13. Market data are as of June 30,1992. Market share data are based posed market, controlling $176.1 million in deposits upon consummaon calculations in which the deposits of thrift institutions are included tion of the proposal. The HHI would increase by 289 points to 2038 on at 50 percent. The Board previously has indicated that thrift institu- the basis of June 30, 1993, market data. A number of factors indicate, tions have become, or have the potential to become, major competi- however, that this increase in market concentration as measured by tors of commercial banks. See Midwest Financial Group, 75 Federal the HHI tends to overstate the competitive effects of this proposal in Reserve Bulletin 386 (1989); National City Corporation, 70 Federal this area. For example, the number of competitors remaining in the Reserve Bulletin 743 (1984). Thus, the Board has regularly included market would remain unchanged at 11 institutions because Norwest is thrift deposits in the calculation of market share on a 50 percent not acquiring BMS's thrift subsidiary, Heritage Bank. This institution weighted basis. See, e.g., First Hawaiian Inc., supra. maintains a level of its assets in commercial and industrial loans of 14. Under the revised Department of Justice Merger Guidelines, 49 approximately 6 percent, which is higher than the national average for Federal Register 26,823 (June 29, 1984), a market in which the thrifts and accordingly exerts a greater competitive influence in the post-merger HHI is between 1000 and 1800 is considered moderately area than other savings associations. The Board also has considered concentrated, and a market in which the post-merger HHI is above the significant competitive presence of credit unions in the area which 1800 is considered to be highly concentrated. In such highly concen- controlling approximately 17 percent of market deposits, more than trated markets, the Justice Department is likely to challenge a merger double the nationwide average, as of September 30, 1993, of 6.1 that increases the HHI by more than 50 points. The Justice Depart- percent. Based on all the facts of record, the Board concludes that ment has informed the Board that a bank merger or acquisition consummation of this proposal would not result in a significantly generally will not be challenged (in the absence of other factors adverse competitive effect in the area proposed by MIB as the relevant indicating anti-competitive effects) unless the post-merger HHI is at geographic banking market. least 1800 and the merger or acquisition increases the HHI by at least 16. In this regard, Norwest has committed to execute sales agree- 200 points. The Justice Department has stated that the higher than ments prior to consummation of this proposal, and to complete these normal threshold for an increase in the HHI when screening bank divestitures within 180 days of consummation of the transaction. mergers and acquisitions for anticompetitive effects implicitly recog- Norwest also has committed that, in the event it is unsuccessful in nizes the competitive effect of limited-purpose lenders and other completing these divestitures within 180 days of consummation of the non-depository financial entities. proposal, Norwest will transfer the relevant office or offices to an 15. Even under MIB's proposed definition of the market, the Board independent trustee that has been instructed to sell the office or offices does not believe that consummation of this proposal would have a promptly. See BankAmerica Corporation, 78 Federal Reserve Bulletin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 459 Billings banking market also would not exceed the balance of public interest factors it must consider levels of concentration in the Department of Justice under section 4(c)(8) of the BHC Act is favorable and guidelines, and the Billings banking market would consistent with approval of Norwest's application to remain moderately concentrated. acquire Montana Agencies. On the basis of all the facts of record, the Board has concluded that the proposal would not result in a Conclusion significantly adverse effect on competition or the concentration of banking resources in any of the relevant Based on the foregoing and other facts of record, the banking markets in which Norwest and BMS compete. Board has determined that the applications should be, and hereby are, approved. The Board's approval is Other Considerations expressly conditioned upon compliance with all the commitments made by Norwest in connection with The Board also has determined that the financial and these applications and the conditions stated in this managerial resources and future prospects of Nororder. The determination as to the nonbanking activiwest, BMS, and their respective subsidiaries, as well ties are subject to all of the conditions in the Board's as considerations relating to the convenience and Regulation Y, including those in sections 225.4(d) and needs of the communities to be served, and the other 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and supervisory factors the Board must consider under to the Board's authority to require such modification section 3 of the BHC Act, also are consistent with or termination of the activities of a holding company or approval. any of its subsidiaries as the Board finds necessary to Norwest also has applied, pursuant to section 4(c)(8) assure compliance with, or to prevent evasions of, the of the BHC Act, to acquire Montana Agencies, a provision and purposes of the BHC Act and the nonbanking subsidiary of BMS, that engages in gen- Board's regulation and orders issued thereunder. The eral insurance agency activities, including the sale of commitments and conditions relied on by the Board in fixed annuities.17 The record in this case indicates that reaching this decision are deemed to be conditions there are numerous providers of these nonbanking imposed in writing by the Board in connection with its services, and the record does not indicate that confindings and decision, and, as such, may be enforced in summation of this proposal is likely to result in any proceedings under applicable law. significantly adverse effects, such as undue concentra- The acquisition of BMS's subsidiary banks shall not tion of resources, decreased or unfair competition, be consummated before the thirtieth calendar day conflicts of interests, or unsound banking practices following the effective date of this order, and the that would outweigh the public benefits of this proacquisition of BMS's bank and nonbank subsidiaries posal. Accordingly, the Board has determined that the shall not be consummated later than three months after the effective date of this order, unless such period 337, 340 (1992); United New Mexico Financial Corporation, 77 is extended for good cause by the Board or by the Federal Reserve Bulletin 484, 485 (1991). Reserve Bank, acting pursuant to delegated authority. 17. The Board previously has determined that Norwest may engage in general insurance agency activities, including the sale as agent By order of the Board of Governors, effective of annuities, pursuant to section 4(c)(8)(G) of the BHC Act ("Exemp- March 14, 1994. tion G"). Norwest Corporation, 76 Federal Reserve Bulletin 873 (1990). This exemption, one of seven specific exemptions (A through G) enacted by Title VI of the Garn-St Germain Depository Institutions Voting for this action: Chairman Greenspan and Governors Act of 1982 to the Garn Act's general prohibition on insurance Kelley, LaWare, Lindsey, and Phillips. activities by bank holding companies, authorizes those bank holding companies that engaged in insurance agency activities prior to 1971 with prior Board approval, to engage, or control a company engaged JENNIFER J. JOHNSON in insurance agency activities. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 Federal Reserve Bulletin • May 1994 ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By the Secretary of the Board Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Acquiring Approval Bank Holding Company Thrift Bank(s) Date First Citizens BancShares, Inc., Home Savings Bank, First Citizens Bank March 25, 1994 Raleigh, North Carolina SSB, and Trust Kings Mountain, Company, North Carolina Raleigh, North Carolina Keystone Financial, Inc., Elmwood Federal Savings National Bank of the March 31, 1994 Harrisburg, Pennsylvania Bank, Main Line, Media, Pennsylvania Harrisburg, Pennsylvania By the Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Acquiring Approval Bank Holding Company Thrift Bank(s) Date AmSouth Bancorporation, Fortune Bank, A Savings AmSouth Bank of February 25, 1994 Birmingham, Alabama Bank, Florida, Clearwater, Florida Pensacola, Florida Dickinson Financial Corporation, United Savings Bank, Bank Midwest, N.A., March 28, 1994 Kansas City, Missouri Lebanon, Missouri Maryville, Missouri KSB Bancorp, Inc., First Federal Savings KSB Bank, March 18, 1994 Kingfield, Maine Association, Kingfield, Maine Lewiston, Maine Norwest Corporation, First Nationwide Bank, Norwest Bank March 4, 1994 Minneapolis, Minnesota FSB, Arizona, N.A., San Francisco, Phoenix, Arizona California Republic Bancorp Co., First Cook Community Republic Bank of March 4, 1994 Orland Park, Illinois Bank, FSB, Chicago, Chicago, Illinois Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 461 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 Compass Bancshares, Inc., Security Bank, National Association, March 17, 1994 Birmingham, Alabama Houston, Texas First Bank System, Inc., First Financial Investors, Inc., March 25, 1994 Minneapolis, Minnesota New York, New York First United Bancshares, Inc. InvestArk Bankshares, Inc., March 15, 1994 El Dorado, Arkansas Stuttgart, Arkansas First Stuttgart Bank & Trust Company, Stuttgart, Arkansas The Bank of North Arkansas, Melbourne, Arkansas Liberty National Bancorp, Inc., Liberty National Bank and Trust March 8, 1994 Louisville, Kentucky Company of Western Kentucky, Hopkinsville, Kentucky Michigan Financial Corporation, Houghton Financial, Inc., March 1, 1994 Marquette, Michigan Houghton, Michigan Section 4 Effective Applicant(s) Bank(s) Date First Banks, Inc., Heartland Savings Bank, F.S.B. March 11, 1994 Clayton, Missouri St. Louis, Missouri Union Planters Corporation, Liberty Bancshares, Inc., March 25, 1994 Memphis, Tennessee Paris, Tennessee Sections 3 and 4 Effective Applicant(s) Bank(s) Date Trans Financial Bancorp, Inc., Peoples Financial Services, Inc., March 21, 1994 Bowling Green, Kentucky Cookeville, Tenessee Peoples Bank and Trust of the Cumberlands, Cookeville, Tennessee Citizens Federal Savings Bank, Rockwood, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 Federal Reserve Bulletin • May 1994 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 1st United Bancorp, Suburban Bank, Atlanta March 9, 1994 Boca Raton, Florida Lake Worth, Florida Aumanchester, Inc., Rochester Bank and Trust Minneapolis March 4, 1994 Rochester, Minnesota Company, Rochester, Minnesota Security State Bank of Hammond, Hammond, Minnesota Bank Corporation of Georgia, AmeriCorp, Inc., Atlanta March 18, 1994 Macon, Georgia Savannah, Georgia Excelsior Financial Services, First State Bank of Minneapolis March 7, 1994 Inc., Excelsior, Excelsior, Minnesota Excelsior, Minnesota ExTraCo Bankshares, Inc., Guaranty Bank and Trust Dallas March 4, 1994 Waco, Texas Company, Gatesville, Texas FF Bancorp, Inc., Key Bancshares, Inc., Atlanta March 1, 1994 New Smyrna Beach, Florida Tampa, Florida Firstbank of Illinois Co., Colonial Bancshares, Chicago March 22, 1994 Springfield, Illinois Inc., Des Peres, Missouri First Banks, Inc., Farmers Bancshares, St. Louis March 22, 1994 St. Louis, Missouri Inc., Breese, Illinois First Bankshares of West Point, First Peoples Bank, Atlanta March 31, 1994 Inc., Pine Mountain, Georgia West Point, Georgia First Integrity Bancorporation, Barrett Bancorporation, Minneapolis March 9, 1994 Inc., Inc., Staples, Minnesota Barrett, Minnesota First Union Corporation, First Union Home Equity Richmond March 25, 1994 Charlotte, North Carolina Bank, National Association, Charlotte, North Carolina Harleysville National Security National Bank, Philadelphia March 29, 1994 Corporation, Pottstown, Harleysville, Pennsylvania Pennsylvania Huckabay Enterprises A Limited Southwest State Kansas City March 3, 1994 Partnership, Corporation, Mustang, Oklahoma Sentinel, Oklahoma Wichita Bancshares, Inc., Snyder, Oklahoma First Mustang Corporation, Mustang, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 463 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Independent Southern Independent Southern St. Louis March 10, 1994 Bancshares, Inc. Employee Bancshares, Inc., Stock Ownership Trust, Brownsville, Tennessee Brownsville, Tennessee Kelliher Bancshares, Inc., Citizens State Bank of Minneapolis March 22, 1994 Kelliher, Minnesota Kelliher, Kelliher, Minnesota Kermit State Bancshares, Inc., Bank of the West, N.A., Dallas February 28, 1994 Kermit, Texas Odessa, Texas Leeds Holding Company, Bankers Financial Minneapolis March 15, 1994 Leeds, North Dakota Corporation, Drake, North Dakota Limestone Bancshares, Inc., First National Bank of Dallas March 4, 1994 Mexia, Texas Mexia, Mexia, Texas Old Kent Financial Corporation, EdgeMark Financial Chicago March 25, 1994 Grand Rapids, Michigan Corporation, Old Kent—Illinois, Inc., Chicago, Illinois Elmhurst, Illinois Palmer Bancshares, Inc., Palmer Bancshares of Dallas March 30, 1994 Palmer, Texas Delaware, Inc., Wilmington, Delaware Commercial State Bank, Palmer, Texas Palmer Bancshares of Delaware, Commercial State Bank, Dallas March 30, 1994 Inc., Palmer, Texas Wilmington, Delaware Peoples Bancshares, Inc., The Peoples National Kansas City March 24, 1994 Clay Center, Kansas Bank, Clay Center, Kansas Republic Bancorp Co., MAH Bancorp, Inc., Chicago March 4, 1994 Orland Park, Illinois Orland Park, Illinois Sack Family Partnership, York State Company, Kansas City February 28, 1994 York, Nebraska York, Nebraska SBT Bankshares, Inc., State Bank and Trust of Kansas City March 14, 1994 Colorado Springs, Colorado Colorado Springs, Colorado Springs, Colorado The Shorebank Corporation, Potters State Bank, Chicago March 24, 1994 Chicago, Illinois East Liverpool, Ohio Southern Bancshares, Inc., First State Bank Brazoria, Dallas March 10, 1994 Houston, Texas Brazoria, Texas Southwest Bancshares, Inc., FirstBank of Arkansas, St. Louis March 3, 1994 Jonesboro, Arkansas Kensett, Arkansas Stockmens Management Black Pipe State Bank, Kansas City March 29, 1994 Company, Martin, South Dakota Rushville, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 Federal Reserve Bulletin • May 1994 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Western Commerce Bancshares Western Bancshares of Dallas March 16, 1994 of Carlsbad, Inc., Clovis, Inc., Carlsbad, New Mexico Carlsbad, New Mexico Zions Bancorporation, Rio Salado Bancorp, Inc., San Francisco March 23, 1994 Salt Lake City, Utah Tempe, Arizona Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Baylor Bancshares, Inc., Baylor Mortgage Dallas March 23, 1994 Seymour, Texas Company, Inc., Seymour, Texas Boatmen's Bancshares, Inc., Eagle Management & St. Louis March 4, 1994 St. Louis, Missouri Trust Company, Houston, Texas Cass Commercial Corporation, to engage de novo in St. Louis March 16, 1994 St. Louis, Missouri acquiring, holding, and disposing of loans or other extensions of credit and providing necessary servicing activities First Bancorporation of Ohio, Life Federal Savings Cleveland March 11, 1994 Akron, Ohio Bank, Clearwater, Florida Firstbank of Illinois Co., Rowe, Henry & Deal, Chicago March 2, 1994 Springfield, Illinois Inc., Jacksonville, Illinois First Community Bancshares, to engage de novo in Dallas March 21, 1994 Inc., credit life insurance Winnfield, Louisiana activities Lake Park Bancshares, Inc., to engage de novo in Minneapolis March 30, 1994 Lake Park, Minnesota making loans for its own account Norwest Corporation, First National Bank of Minneapolis March 30, 1994 Minneapolis, Minnesota Detroit Lakes, Detroit Lakes, Minnesota Norwest Corporation, FN Investment Center, Minneapolis March 4, 1994 Minneapolis, Minnesota Phoenix, Arizona Republic Bancorp Co., Ziebell Water Service Chicago March 4, 1994 Orland Park, Illinois Products, Inc., Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 465 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Republic Bancorp Company, MAH Financial, Inc., Chicago March 4, 1994 Orland Park, Illinois Chicago, Illinois First Cook Community Bank, FSB, Chicago, Illinois APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Sections 3 and 4 Reserve Effective Applicant(s) Bank(s) Bank Date 1st United Bank, Suburban Bank, Atlanta March 9, 1994 Boca Raton, Florida Lake Worth, Florida First Community Bank, First Union National Richmond March 31, 1994 Forest, Virginia Bank of Virginia, Roanoke, Virginia OMNIBANK Southeast, OMNIBANK Denver, Kansas City March 18, 1994 Denver, Colorado Denver, Colorado OMNIBANK Leetsdale, Denver, Colorado WesBanco Bank Wheeling, WesBanco Bank Cleveland March 2, 1994 Wheeling, West Virginia Wellsburg, Inc., Wellsburg, West Virginia PENDING CASES INVOLVING THE BOARD OF on appeal with Board of Governors v. DLG Finan- GOVERNORS cial Corp., Nos. 93-2944 and 94-20013 (5th Cir., filed December 14, 1993 and December 31, 1993), an appeal of a temporary restraining order and a This list of pending cases does not include suits preliminary injunction obtained by the Board against the Federal Reserve Banks in which the Board freezing assets of a corporation and an individual of Governors is not named a party. pending administrative adjudication of civil money penalty assessments by the Board. Appellants' DLG Financial Corp. v. Board of Governors, No. brief was filed on March 21, 1994. 94-10078 (5th Cir., filed January 20, 1994). Appeal Board of Governors v. Oppegard, No. 93-3706 (8th of district court dismissal of appellants' action to Cir., filed November 1, 1993). Appeal of district enjoin the Board and the Federal Reserve Bank of court order ordering appellant Oppegard to comply Dallas from taking certain enforcement actions, with prior order requiring compliance with Board and for money damages on a variety of tort and removal, prohibition, and civil money penalty order. contract theories. The case has been consolidated The Board's brief was filed on January 20, 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 Federal Reserve Bulletin • May 1994 Scott v. Board of Governors, No. 930905843CV (Dist. ment Act case. The parties' cross-motions for sum- Ct., Salt Lake County, Utah, filed October 8, 1993). mary judgment are pending. Action against Board and others for damages and Board of Governors v. Ghaith R. Pharaon, No. 91injunctive relief for alleged constitutional and statu- CIV-6250 (S.D. New York, filed September 17, tory violations caused by issuance of Federal Re- 1991). Action to freeze assets of individual pending serve notes. administrative adjudication of civil money penalty Richardson v. Board of Governors, et al., No. 93-C assessment by the Board. On September 17, 1991, 836A (D. Utah, filed August 30, 1993). Action the court issued an order temporarily restraining the against Board and others for damages and injunctive transfer or disposition of the individual's assets. relief for alleged constitutional and statutory violations caused by issuance of Federal Reserve notes. On December 16, 1993, the District Court granted FINAL ENFORCEMENT ORDERS ISSUED BY THE the Board's motion to dismiss. On January 14, 1994, BOARD OF GOVERNORS plaintiff filed a notice of appeal. Jackson v. Board of Governors, No. CV-N-93-401- Mount Vernon Bankshares, Inc. ECR (D. Nev., filed June 14, 1993). Pro se action for Mount Vernon, Kentucky violation of a prisoner's civil rights. On November 26, 1993, the Board filed a motion to dismiss. The Federal Reserve Board announced on March 16, First National Bank ofBellaire v. Board of Governors, 1994, the issuance of a Cease and Desist Order against No. H-93-1708 (S.D. Texas, filed June 8, 1993). Mount Vernon Bancshares, Inc., Mount Vernon, Ken- Action to enjoin possible enforcement actions by tucky, and Jerry Ikerd and Brenda Ikerd, the principal Board of Governors and other bank regulatory agenshareholders and sole directors of Mount Vernon cies. On September 23, 1993, the agencies filed a Bancshares, Inc. motion to dismiss. Kubany v. Board of Governors, et al., No. 93-1428 (D. Pacific Western Bank D.C., filed July 9, 1993). Action challenging Board San Jose, California determination under the Freedom of Information Act. The Board's motion to dismiss was filed on The Federal Reserve Board announced on March 2, October 15, 1993. 1994, the issuance of a combined Order to Cease and Bennett v. Greenspan, No. 93-1813 (D. D.C., filed Desist and Order of Assessment of a Civil Money April 20, 1993). Employment discrimination action. Penalty against the Pacific Western Bank, San Jose, Amann v. Prudential Home Mortgage Co., et al., No. California, a state member bank. 93-10320 WD (D. Massachusetts, filed February 12, 1993). Action for fraud and breach of contract Gary L. Parker arising out of a home mortgage. On April 17, 1993, New York, New York the Board filed a motion to dismiss. Adams v. Greenspan, No. 93-0167 (D. D.C., filed The Federal Reserve Board announced on March 16, January 27, 1993). Action by former employee under 1994, the issuance of an Order of Prohibition against the Civil Rights Act of 1964 and the Rehabilitation Gary L. Parker, a former officer of the New York Act of 1973 concerning termination of employment. Branch of Dresdner Bank AG, Frankfurt, Germany. The Board's motion for partial summary judgment was filed on January 4, 1994. CBC, Inc. v. Board of Governors, No. 93-1458 (U.S. Supreme Court, filed March 17, 1994). Petition for WRITTEN AGREEMENTS APPROVED BY FEDERAL review of civil money penalty assessment against a RESERVE BANKS bank holding company and three of its officers and directors for failure to comply with reporting re- First FSB Bancshares, Inc. quirements. On November 30, 1993, the Court of Mount Calm, Texas Appeals for the 10th Circuit denied the petition for review. On March 17, 1994, CBC filed a petition for The Federal Reserve Board announced on March 7, certiorari. 1994, the execution of a Written Agreement between Zemel v. Board of Governors, No. 92-1056 (D. D.C., the Federal Reserve Bank of Dallas and First FSB filed May 4, 1992). Age Discrimination in Employ- Bancshares, Inc., Mount Calm, Texas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

467 Directors of Federal Reserve Banks and Branches Regional decentralization and a combination of govern- without discrimination as to race, creed, color, sex, or mental and private characteristics are important hall- national origin. marks of the uniqueness of the Federal Reserve System. Class A directors represent the stockholding member Under the Federal Reserve Act, decentralization was banks of the Federal Reserve District. Class B and achieved by the division of the country into twelve Class C directors represent the public and are chosen regions called Federal Reserve Districts and the estab- with due, but not exclusive, consideration given to the lishment in each District of a separately incorporated interests of agriculture, commerce, industry, services, Federal Reserve Bank with its own board of directors. labor, and consumers; they may not be officers, directors, The blending of governmental and private characteris- or employees of any bank or bank holding company. tics is provided through ownership of the stock of the Also, Class C directors may not be stockholders of any Reserve Bank by member banks in its District, who also bank or bank holding company. The Board of Governors elect the majority of the board of directors, and by the designates annually one Class C director as chairman of general supervision of the Reserve Banks by the Board the board of directors of each District Bank and another of Governors, an agency of the federal government. The Class C director as deputy chairman. Board also appoints a minority of each board of direc- Each of the twenty-five Branches of the Federal tors. Thus, there are essential elements of regional partic- Reserve Banks has a board of either seven or five direcipation and counsel in the conduct of the System's tors, a majority of whom are appointed by the parent affairs for which the Federal Reserve relies importantly Federal Reserve Bank; the others are appointed by the on the contributions of the directors of the Federal Board of Governors. One of the Board's appointees is Reserve Banks and Branches. designated annually as chairman of the board of that The following list of directors of Federal Reserve Branch in a manner prescribed by the parent Federal Banks and Branches shows for each director the class of Reserve Bank. directorship, the principal business affiliation, and the The names of the chairman and deputy chairman of date the current term expires. Each Federal Reserve the board of directors of each Reserve Bank and of the Bank has nine members on its board of directors: three chairman of each Branch are published monthly in the Class A and three Class B directors, who are elected by Federal Reserve Bulletin.1 the stockholding member banks, and three Class C directors, who are appointed by the Board of Governors of the Federal Reserve System. Directors are chosen 1. The current list appears on page A92 of this Bulletin. Term expires DISTRICT 1—BOSTON December 31 Class A Robert M. Silva President, Chief Executive Officer, and Director, The Citizens 1994 National Bank, Putnam, Connecticut Ira Stepanian Chairman and Chief Executive Officer, The Bank of Boston 1995 Corporation, Boston, Massachusetts David A. Page President and Chief Executive Officer, Ocean National Bank of 1996 Kennebunk, Kennebunk, Maine Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 1—Continued December 31 Class B Edward H. Ladd Chairman and Chief Executive Officer, Standish, Ayer and Wood, 1994 Inc., Boston, Massachusetts Joan T. Bok Chairman, New England Electric System, Westborough, 1995 Massachusetts Stephen L. Brown Chairman and Chief Executive Officer, John Hancock Mutual Life 1996 Insurance Company, Boston, Massachusetts Class C Jerome H. Grossman Chairman and Chief Executive Officer, New England Medical Center, 1994 Inc., Boston, Massachusetts Warren B. Rudman, Esq. Sheehan, Phinney, Bass, and Green, Manchester, New Hampshire 1995 John E. Flynn Executive Director, The Quality Connection, East Dennis, 1996 Massachusetts DISTRICT 2—NEW YORK Class A Chairman and Chief Executive Officer, The Chase Manhattan Bank, 1994 Thomas G. Labrecque N.A., New York, New York Chairman, President, and Chief Executive Officer, Manufacturers and 1995 Robert G. Wilmers Traders Trust Company, Buffalo, New York Chairman and Chief Executive Officer, The First National Bank of 1996 J. William Johnson Long Island, Glen Head, New York Class B Robert E. Allen Chairman and Chief Executive Officer, AT&T, Basking Ridge, 1994 New Jersey William C. Steere, Jr. Chairman and Chief Executive Officer, Pfizer Inc., 1995 New York, New York Sandra Feldman President, United Federation of Teachers, New York, New York 1996 Class C Maurice R. Greenberg Chairman and Chief Executive Officer, American International Group, 1994 Inc., New York, New York Herbert L. Washington Owner, HLW Fast Track, Inc., Rochester, New York 1995 David A. Hamburg President, Carnegie Corporation, New York, New York 1996 BUFFALO BRANCH Appointed by the Federal Reserve Bank Charles M. Mitschow Chairman, Western Region, Marine Midland Bank, Buffalo, 1994 New York Richard H. Popp Operating Partner, Southview Farm, Castile, New York 1994 George W. Hamlin IV President and Chief Executive Officer, The Canandaigua National 1995 Bank and Trust Company, Canandaigua, New York Louise C. Woerner Chairman and Chief Executive Officer, HCR Home Health Agency, 1996 Rochester, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 469 Term expires DISTRICT 2—Continued December 31 Buffalo Branch—Continued Appointed by the Board of Governors Donald L. Rust Plant Manager, Tonawanda Engine Plant, General Motors Powertrain 1994 Division, General Motors Corporation, Buffalo, New York F. C. Richardson President, Buffalo State College, Buffalo, New York 1995 Joseph J. Castiglia President and Chief Executive Officer, Pratt & Lambert, Inc., 1996 Buffalo, New York DISTRICT 3—PHILADELPHIA Class A H. Bernard Lynch President and Chief Executive Officer, The First National Bank of 1994 Wyoming, Wyoming, Delaware Carl L. Campbell President and Chief Executive Officer, Keystone Financial, Inc., 1995 Harrisburg, Pennsylvania Terry K. Dunkle Chairman, United States National Bank, Johnstown, Pennsylvania 1996 Class B James A. Hagen Chairman, President, and Chief Executive Officer, Consolidated Rail 1994 Corporation (CONRAIL), Philadelphia, Pennsylvania David W. Huggins President and Chief Executive Officer, RMS Technologies, Inc., 1995 Marlton, New Jersey J. Richard Jones President and Chief Executive Officer, Jackson-Cross Company, 1996 Philadelphia, Pennsylvania Class C Business Manager, International Brotherhood of Electrical Workers, 1994 Donald J. Kennedy Local Union No. 269, Trenton, New Jersey President and Chief Executive Officer, Capital Blue Cross, 1995 James M. Mead Harrisburg, Pennsylvania President and Chief Operating Officer, United Medical Corporation, 1996 Joan Carter Haddonfield, New Jersey DISTRICT 4—CLEVELAND Class A Chairman and Chief Executive Officer, The Park National Bank, 1994 William T. McConnell Newark, Ohio Chairman and Chief Executive Officer, National City Corporation, 1995 Edward B. Brandon Cleveland, Ohio Chairman, President, and Chief Executive Officer, Apple Creek 1996 Alfred C. Leist Banking Company, Apple Creek, Ohio Class B President and Chief Executive Officer, Battelle Memorial Institute, 1994 Douglas E. Olesen Columbus, Ohio President and Chief Executive Officer, American Micrographics 1995 I. N. Rendall Harper, Jr. Company, Inc., Monroeville, Pennsylvania President, Cincom Systems, Inc., Cincinnati, Ohio 1996 Thomas M. Nies Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 4—Continued December 31 Class C President, GWH Holdings, Inc., Pittsburgh, Pennsylvania 1994 G. Watts Humphrey, Jr. Chairman and Chief Executive Officer, GenCorp, Fairlawn, Ohio 1995 A. William Reynolds Executive Secretary-Treasurer, Ohio State Building and Construction 1996 Robert Y. Farrington Trades Council, Columbus, Ohio CINCINNATI BRANCH Appointed by the Federal Reserve Bank Marvin J. Stammen President and Chief Executive Officer, Second National Bank, 1994 Greenville, Ohio Jerry W. Carey President and Chief Executive Officer, Union National Bank and Trust 1995 Company, Barbourville, Kentucky Phillip R. Cox President, Cox Financial Corporation, Cincinnati, Ohio 1996 C. Wayne Shumate Chairman and Chief Executive Officer, Kentucky Textiles, Inc., 1996 Paris, Kentucky Appointed by the Board of Governors Raymond A. Bradbury Chairman (Retired), Martin County Coal Corporation, 1994 Prestonburg, Kentucky Eleanor Hicks President, M.I.N.D.S. International, Cincinnati, Ohio 1995 John N. Taylor, Jr. Chairman and Chief Executive Officer, Kurz-Kasch, Inc. 1996 Dayton, Ohio PITTSBURGH BRANCH Appointed by the Federal Reserve Bank David S. Dahlmann President and Chief Executive Officer, Southwest National 1994 Corporation, Greensburg, Pennsylvania Helen J. Clark Chairman, President, and Chief Executive Officer, Apollo Trust 1995 Company, Apollo, Pennsylvania Randall L. C. Russell President and Chief Executive Officer, Ranbar Technology, Inc., 1996 Glenshaw, Pennsylvania Wesley W. von Schack Chairman, President, and Chief Executive Officer, DQE, 1996 Pittsburgh, Pennsylvania Appointed by the Board of Governors Jack B. Piatt Chairman and President, Millcraft Industries, Inc., 1994 Washington, Pennsylvania Robert P. Bozzone President and Chief Executive Officer, Allegheny Ludlum 1995 Corporation, Pittsburgh, Pennsylvania Sandra L. Phillips Executive Director, Pittsburgh Partnership for Neighborhood 1996 Development, Pittsburgh, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 471 Term expires DISTRICT 5—RICHMOND December 31 Class A Chairman, The Palmer National Bancorp, Inc. and President. Palmer 1994 Webb C. Hayes IV National Bank, Washington, D.C. President, Elkridge National Bank and ENB Financial Corporation, 1995 Charles E. Weller Elkridge, Maryland Chairman and Chief Executive Officer, Signet Banking Corporation, 1996 Robert M. Freeman Richmond, Virginia Class B L. Newton Thomas, Jr. Senior Vice President (Retired), ITT/Carbon Industries, Inc., 1994 Charleston, West Virginia R. E. Atkinson, Jr. Chairman, Dilmar Oil Company, Inc., Florence, South Carolina 1995 Paul A. DelaCourt Chairman, The North Carolina Enterprise Corporation, 1996 Raleigh, North Carolina Class C Claudine B. Malone President, Financial & Management Consulting, Inc., McLean, 1994 Virginia Henry J. Faison President, Faison Associates, Charlotte, North Carolina 1995 Stephen Brobeck Executive Director, Consumer Federation of America, 1996 Washington, D.C. BALTIMORE BRANCH Appointed by the Federal Reserve Bank Thomas J. Hughes President/Chief Executive Officer, Navy Federal Credit Union, 1994 Vienna, Virginia F. Levi Ruark Chairman and President, The National Bank of Cambridge, 1994 Cambridge, Maryland Richard M. Adams Chairman and Chief Executive Officer, United Bankshares, Inc., 1995 Parkersburg, West Virginia Morton I. Rapoport, M.D. President and Chief Executive Officer, University of Maryland 1996 Medical System, Baltimore, Maryland Appointed by the Board of Governors Rebecca Hahn Windsor Chairman and Chief Executive Officer, Hahn Transportation, Inc., 1994 New Market, Maryland Daniel R. Baker President and Chief Executive Officer, Tate Access Floors, Inc., 1995 Jessup, Maryland Michael R. Watson President, Association of Maryland Pilots, Baltimore, Maryland 1996 CHARLOTTE BRANCH Appointed by the Federal Reserve Bank Dorothy H. Aranda President, Dohara Associates, Inc., Hilton Head Island, South Carolina 1994 Vacancy 1994 David B. Jordan Vice Chairman, Chief Executive Officer, and Director, Security 1995 Capital Bancorp, Salisbury, North Carolina Jim M. Cherry, Jr. President and Chief Executive Officer, Williamsburg First National 1996 Bank, Kingstree, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 5—Continued December 31 Charlotte Branch—Continued Appointed by the Board of Governors Harold D. Kingsmore President and Chief Operating Officer, Graniteville Company, 1994 Graniteville, South Carolina James O. Roberson President/Chief Executive Officer, Research Triangle Foundation of 1995 North Carolina, Research Triangle Park, North Carolina Dennis Lowery Chief Executive Officer and Chairman, Continental Ltd., 1996 Charlotte, North Carolina DISTRICT 6—ATLANTA Class A D. Paul Jones, Jr. Chairman and Chief Executive Officer, Compass Bancshares, Inc. 1994 Birmingham, Alabama W. H. Swain Chairman, First National Bank, Oneida, Tennessee 1995 James B. Williams Chairman and Chief Executive Officer, SunTrust Banks, Inc., 1996 Atlanta, Georgia Class B Victoria B. Jackson President, DSS/ProDiesel, Nashville, Tennessee 1994 J. Thomas Holton Chairman and President, Sherman International Corporation, 1995 Birmingham, Alabama Andre M. Rubenstein Chairman and Chief Executive Officer, Rubenstein Brothers, Inc., 1996 New Orleans, Louisiana Class C Hugh M. Brown President and Chief Executive Officer, BAMSI, Inc., 1994 Titusville, Florida Leo Benatar Chairman and President, Engraph, Inc., Atlanta, Georgia 1995 Daniel E. Sweat, Jr. Program Director, The Atlanta Project, Atlanta, Georgia 1996 BIRMINGHAM BRANCH Appointed by the Federal Reserve Bank Marlin D. Moore, Jr. Chairman, Pritchett-Moore, Inc., Tuscaloosa, Alabama 1994 Columbus Sanders President, Consolidated Industries, Inc., Huntsville, Alabama 1994 J. Stephen Nelson President and Chief Executive Officer, First National Bank, 1995 Brewton, Alabama Julian W. Banton Chairman, President, and Chief Executive Officer, SouthTrust Bank of 1996 Alabama, N.A., Birmingham, Alabama Appointed by the Board of Governors Shelton E. Allred Chairman, President, and Chief Executive Officer, Frit Incorporated, 1994 Ozark, Alabama Patricia B. Compton President, Patco, Inc., Georgiana, Alabama 1995 Donald E. Boomershine President, Better Business Bureau of Central Alabama, Inc., 1996 Birmingham, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 473 Term expires DISTRICT 6—Continued December 31 JACKSONVILLE BRANCH Appointed by the Federal Reserve Bank Perry M. Dawson President and Chief Executive Officer, Suncoast Schools Federal 1994 Credit Union, Tampa, Florida Arnold A. Heggestad William H. Dial Professor and Director, College of Business 1994 Administration, University of Florida, Gainesville, Florida Royce B. Walden Vice President, Ward Bradford & Company, Orlando, Florida 1995 William G. Smith, Jr. President, Capital City First National Bank, Tallahassee, Florida 1996 Appointed by the Board of Governors Samuel H. Vickers President, Chairman, and Chief Executive Officer, Design Containers, 1994 Inc., Jacksonville, Florida Lana Jane Lewis-Brent President, Paul Brent Designer, Inc., Panama City, Florida 1995 Joan Dial Ruffier General Partner, Sunshine Cafes, Orlando, Florida 1996 MIAMI BRANCH Appointed by the Federal Reserve Bank Roberto G. Blanco Vice Chairman and Chief Financial Officer, Republic National Bank 1994 of Miami, Miami, Florida E. Anthony Newton President, Island National Bank of Palm Beach, Palm Beach, Florida 1995 Steven C. Shimp President, O-A-K/Florida, Inc., Fort Myers, Florida 1996 Pat L. Tornillo, Jr. Executive Vice President, United Teachers of Dade, Miami, Florida 1996 Appointed by the Board of Governors Dorothy C. Weaver Executive Vice President, Intercap Investments, Inc., 1994 Coral Gables, Florida R. Kirk Landon Chairman and Chief Executive Officer, American Bankers Insurance 1995 Group, Miami, Florida Michael T. Wilson President, Vinegar Bend Farms, Inc., Belle Glade, Florida 1996 NASHVILLE BRANCH Appointed by the Federal Reserve Bank William Baxter Lee III Chairman and President, Southeast Services Corporation, 1994 Knoxville, Tennessee Vacancy 1994 James D. Harris President and Chief Executive Officer, Brentwood National Bank, 1995 Brentwood, Tennessee Williams E. Arant, Jr. President and Chief Executive Officer, First National Bank of 1996 Knoxville, Knoxville, Tennessee Appointed by the Board of Governors Vacancy 1994 Harold A. Black James F. Smith Jr. Professor of Financial Institutions, College of 1995 Business Administration, University of Tennessee, Knoxville, Tennessee Paula Lovell President, Lovell Communications, Inc., Nashville, Tennessee 1996 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 6—Continued December 31 NEW ORLEANS BRANCH Appointed by the Federal Reserve Bank Angus R. Cooper Chairman and Chief Executive Officer, Cooper/T. Smith Corporation, 1994 Mobile, Alabama Kay L. Nelson Managing Director, Nelson Capital Corporation, New Orleans, 1994 Louisiana Thomas E. Walker President and Chief Executive Officer, Bank of Forest, 1995 Forest, Mississippi Howard C. Gaines Chairman and Chief Executive Officer, First National Bank of 1996 Commerce, New Orleans, Louisiana Appointed by the Board of Governors Jo Ann Slaydon President, Slaydon Consultants and Insight Productions and 1994 Advertising, Baton Rouge, Louisiana Lucimarian Tolliver Roberts President, Mississippi Coast Coliseum Commission, 1995 Pass Christian, Mississippi Victor Bussie President, Louisiana AFL-CIO, Baton Rouge, Louisiana 1996 DISTRICT 7—CHICAGO Class A Stefan S. Anderson Chairman, President, and Chief Executive Officer, First Merchants 1994 Corporation, Muncie, Indiana Arnold C. Schultz Chairman and President, Grundy National Bank, Grundy Center, Iowa 1995 David W. Fox Chairman and Chief Executive Officer, The Northern Trust 1996 Corporation and The Northern Trust Company, Chicago, Illinois Class B Thomas C. Don- President and Chief Executive Officer, Dorr's Pine Grove Farm Co., 1994 Marcus, Iowa Donald J. Schneider President, Schneider National, Inc., Green Bay, Wisconsin 1995 A. Charlene Sullivan Associate Professor of Management, Krannert Graduate School of 1996 Management, Purdue University, West Lafayette, Indiana Class C Chairman and Chief Executive Officer, Abbott Laboratories, 1994 Duane L. Burnham Abbott Park, Illinois Chairman and Chief Executive Officer, NICOR Inc., 1995 Richard G. Cline Naperville, Illinois President, Chicago Federation of Labor and Industrial Union Council, 1996 Robert M. Healey AFL-CIO, Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 475 Term expires DISTRICT 7—Continued December 31 DETROIT BRANCH Appointed by the Federal Reserve Bank Charles R. Weeks President and Chief Executive Officer, Citizens Banking Corporation, 1994 Flint, Michigan Norman F. Rodgers President and Chief Executive Officer, Hillsdale County National 1995 Bank, Hillsdale, Michigan Charles E. Allen President and Chief Executive Officer, Graimark Realty Advisors, 1996 Inc., Detroit, Michigan William E. Odom Chairman, Ford Motor Credit Company, Dearborn, Michigan 1996 Appointed by the Board of Governors John D. Forsyth Executive Director, University of Michigan Hospitals, 1994 Ann Arbor, Michigan J. Michael Moore Chairman and Chief Executive Officer, Invetech Company, 1995 Detroit, Michigan Florine Mark President and Chief Executive Officer, WW Group, 1996 Farmington Hills, Michigan DISTRICT 8—ST. LOUIS Class A President and Chief Executive Officer, First National Bank in 1994 Henry G. River, Jr. Pinckneyville, Pinckneyville, Illinois Chairman and President, Trans Financial Bancorp, Inc., 1995 Douglas M. Lester Bowling Green, Kentucky Chairman and Chief Executive Officer, First National Bank of Eastern 1996 W. D. Glover Arkansas, Forrest City, Arkansas Class B President and Chief Executive Officer, Sanderson Plumbing Products, 1994 Sandra B. Sanderson-Chesnut Inc., Columbus, Mississippi President and Chief Executive Officer, Riceland Foods, Inc., 1995 Richard E. Bell Stuttgart, Arkansas President, W. R. Lee & Associates, Inc.. Louisville, Kentucky 1996 Warren R. Lee Class C Robert H. Quenon Mining Consultant, St. Louis, Missouri 1994 John F. McDonnell Chairman and Chief Executive Officer, McDonnell Douglas 1995 Corporation, St. Louis, Missouri Veo Peoples, Jr. Partner, Peoples, Hale & Coleman, St. Louis, Missouri 1996 LITTLE ROCK BRANCH Appointed by the Federal Reserve Bank Barnett Grace Chairman and Chief Executive Officer, First Commercial Bank, N.A., 1994 Little Rock, Arkansas Mark A. Shelton III President, M. A. Shelton Farming Company, Altheimer, Arkansas 1995 James V. Kelley Chairman, President, and Chief Executive Officer, First United 1996 Bancshares, Inc., El Dorado, Arkansas Mahlon A. Martin President, Winthrop Rockefeller Foundation, Little Rock, Arkansas 1996 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 8—Continued December 31 Little Rock Branch—Continued Appointed by the Board of Governors Robert Daniel Nabholz, Jr. Chief Executive Officer, Nabholz Construction Corporation, 1994 Conway, Arkansas Betta Carney President and Chief Executive Officer, World Wide Travel Service, 1995 Inc., Little Rock, Arkansas Janet M. Jones President, The Janet Jones Company, Little Rock, Arkansas 1996 LOUISVILLE BRANCH Appointed by the Federal Reserve Bank Thomas E. Spragens, Jr. President, The Farmers National Bank of Lebanon, Kentucky, 1994 Lebanon, Kentucky Malcolm B. Chancey, Jr. Chairman and Chief Executive Officer, Liberty National Bank & Trust 1995 Company of Louisville, Kentucky, Louisville, Kentucky Robert M. Hall Owner, Family Farm, Seymour, Indiana 1996 Charles D. Storms President and Chief Executive Officer, Red Spot Paint and Varnish 1996 Company, Inc., Evansville, Indiana Appointed by the Board of Governors Laura M. Douglas Legal Director, Louisville and Jefferson County, Metropolitan Sewer 1994 District, Louisville, Kentucky Daniel L. Ash Consultant, Wenz-Neely Company, Louisville, Kentucky 1995 John A. Williams Chairman and Chief Executive Officer, Computer Services, Inc., 1996 Paducah, Kentucky MEMPHIS BRANCH Appointed by the Federal Reserve Bank Lewis F. Mallory, Jr. Chairman and Chief Executive Officer, National Bank of Commerce 1994 of Mississippi, Starkville, Mississippi Anthony M. Rampley President, Chief Executive Officer, and Director, Arkansas Glass 1995 Container Corporation, Jonesboro, Arkansas Benjamin W. Rawlins, Jr. Chairman and Chief Executive Officer, Union Planters Corporation, 1996 Memphis, Tennessee Katie S. Winchester President and Director, First Citizens National Bank, 1996 Dyersburg, Tennessee Appointed by the Board of Governors Sidney Wilson, Jr. Owner, Wilson Automotive Group Inc., Jackson, Tennessee 1994 John V. Myers President, Better Business Bureau, Memphis, Tennessee 1995 Woods E. Eastland President and Chief Executive Officer, Staple Cotton Cooperative 1996 Association, Greenwood, Mississippi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 115 Term expires DISTRICT 9—MINNEAPOLIS December 31 Class A William W. Strausburg Chairman and Chief Executive Officer, First Bank Montana, NA., 1994 and General Manager, First Bank-Regional Banking Group, Billings, Montana Susanne V. Boxer President and Chief Executive Officer, Houghton National Bank, 1995 Houghton, Michigan Jerry B. Melby President, First National Bank, Bowbells, North Dakota 1996 Class B Duane E. Dingmann President, Trubilt Auto Body, Inc., Eau Claire, Wisconsin 1994 Dennis W. Johnson President, TMI Systems Design Corporation/TMI Transport 1995 Corporation, Dickinson, North Dakota Clarence D. Mortenson President, M/C Professional Associates, Inc., Pierre, South Dakota 1996 Class C Jean D. Kinsey Professor of Consumption and Consumer Economics, Department of 1994 Agricultural and Applied Economics, University of Minnesota, St. Paul, Minnesota Gerald A. Rauenhorst Chairman and Chief Executive Officer, Opus Corporation, 1995 Minneapolis, Minnesota David A. Koch Chairman and Chief Executive Officer, Graco, Inc., 1996 Golden Valley, Minnesota HELENA BRANCH Appointed by the Federal Reserve Bank Donald E. Olsson, Jr. Executive Vice President, Ronan State Bank, Ronan, Montana 1994 Nancy M. Stephenson Executive Director, Neighborhood Housing Services, 1994 Great Falls, Montana Ronald D. Scott President and Chief Executive Officer, The First State Bank of Malta, 1995 Malta, Montana Appointed by the Board of Governors Lane W. Basso President, Deaconess Medical Center of Billings, Inc., Billings, 1994 Montana Matthew J. Quinn President, Carroll College, Helena, Montana 1995 DISTRICT 10—KANSAS CITY Class A Charles I. Moyer Chairman and Chief Executive Officer, First National Bank of 1994 Phillipsburg, Phillipsburg, Kansas William L. McQuillan President, Chief Executive Officer, and Director, City National Bank, 1995 Greeley, Nebraska Lawrence W. Menefee Chairman and Chief Executive Officer, Union Colony Bank, 1996 Greeley, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 10—Continued December 31 Class B Deputy Project Manager, Manufacturing Sciences Corporation, 1994 Frank J. Yaklich, Jr. Denver, Colorado Chairman and Chief Executive Officer, Phillips Petroleum Company, 1995 W. W. Allen Bartlesville, Oklahoma Managing Partner, Davison & Sons Cattle Company, Arnett, 1996 Charles W. Nichols Oklahoma Class C Burton A. Dole, Jr. Chairman and President, Puritan-Bennett Corporation, 1994 Overland Park, Kansas Herman Cain President and Chief Executive Officer, Godfather's Pizza, Inc. 1995 Omaha, Nebraska Colleen D. Hernandez Executive Director, Kansas City Neighborhood Alliance, 1996 Kansas City, Missouri DENVER BRANCH Appointed by the Federal Reserve Bank Clifford E. Kirk President and Chief Executive Officer, First National Bank of Gillette, 1994 Gillette, Wyoming Richard I. Ledbetter President and Chief Executive Officer, First National Bank of 1994 Farmington, Farmington, New Mexico Peter I. Wold Partner, Wold Oil & Gas Company, Casper, Wyoming 1995 Peter R. Decker President, Peter R. Decker & Associates, Denver, Colorado 1996 Appointed by the Board of Governors Barbara B. Grogan President, Western Industrial Contractors, Inc., Denver, Colorado 1994 Sandra K. Woods Vice President, Adolph Coors Company, Golden, Colorado 1995 Floyd R. Correa President, Correa Enterprises, Inc., Albuquerque, New Mexico 1996 OKLAHOMA CITY BRANCH Appointed by the Federal Reserve Bank John Wm. Laisle President and Chief Executive Officer, MidFirst Bank, SSB, 1994 Oklahoma City, Oklahoma C. Kendric Fergeson Chairman and Chief Executive Officer, The National Bank of 1995 Commerce, Altus, Oklahoma Dennis M. Mitchell President, Citizens Bank of Ardmore, Ardmore, Oklahoma 1995 Gordona Duca President/Owner, Gordona Duca, Inc., Realtors, Tulsa, Oklahoma 1996 Appointed by the Board of Governors Victor R. Schock President and Chief Executive Officer, Credit Counseling Centers, 1994 Tulsa, Oklahoma Barry L. Eller Sr. Vice President and General Manager, MerCruiser, Mercury Marine 1995 Business Unit, Division of Brunswick Corp., Stillwater, Oklahoma Ernest L. Holloway President, Langston University, Langston, Oklahoma 1996 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 479 Term expires DISTRICT 10—Continued December 31 OMAHA BRANCH Appointed by the Federal Reserve Bank Donald A. Leu President and Chief Executive Officer, Consumer Credit Counseling 1994 Service, Omaha, Nebraska Thomas H. Olson Chairman, First National Bank, Sidney, Nebraska 1994 Robert L. Peterson Chairman, President, and Chief Executive Officer, IBP, Inc., 1995 Dakota City, Nebraska Bruce R. Lauritzen President, First National Bank of Omaha, Omaha, Nebraska 1996 Appointed by the Board of Governors Arthur L. Shoener Executive Vice President-Operations, Union Pacific Railroad, 1994 Omaha, Nebraska Sheila Griffin Special Advisor to the Governor of the State of Nebraska for 1995 International Trade, Lincoln, Nebraska LeRoy W. Thom President, T-L Irrigation Company, Hastings, Nebraska 1996 DISTRICT 11—DALLAS Class A Eugene M. Phillips Chairman and President, The First National Bank of Panhandle, 1994 Panhandle, Texas Vacancy 1995 Gayle M. Earls President and Chief Executive Officer, Texas Independent Bank, 1996 Dallas, Texas Class B Peyton Yates President, Yates Drilling Company and Executive Vice President, 1994 Yates Petroleum Corporation, Artesia, New Mexico Milton Carroll Chairman and Chief Executive Officer, Instrument Products, Inc., 1995 Houston, Texas J. B. Cooper, Jr. Farmer, Roscoe, Texas 1996 Class C Cece Smith General Partner, Phillips-Smith Specialty Retail Group, Dallas, Texas 1994 Chairman, President, and Chief Executive Officer, Diamond Inc., 1995 Roger R. Hemminghaus San Antonio, Texas Third General Vice President, International Association of Bridge, 1996 James A. Martin Structural and Ornamental Iron Workers, Austin, Texas EL PASO BRANCH Appointed by the Federal Reserve Bank Hugo Bustamante, Jr. Owner and Chief Executive Officer, ProntoLube, Inc. and CarLube, 1994 Inc., El Paso, Texas Wayne Merritt Chairman and President, Texas National Bank of Midland, 1995 Midland, Texas Veronica K. Callaghan Vice President and Principal, KASCO Ventures, Inc., El Paso, Texas 1996 Ben H. Haines, Jr. President and Chief Operating Officer, First National Bank of 1996 Dona Ana County, Las Cruces, New Mexico Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 11—Continued, December 31 El Paso Branch—Continued Appointed by the Board of Governors Alvin T. Johnson President, Management Assistance Corporation of America, 1994 El Paso, Texas W. Thomas Beard III President, Leoncita Cattle Company, Alpine, Texas 1995 Patricia Z. Holland-Branch President, PZH Contract Design, Inc., El Paso, Texas 1996 HOUSTON BRANCH Appointed by the Federal Reserve Bank Tieman H. Dippel, Jr. Chairman and President, Brenham Bancshares, Inc., Brenham, Texas 1994 J. Michael Solar President, Solar & Ellis L.L.P., Houston, Texas 1995 Judith B. Craven President, United Way of the Texas Gulf Coast, Houston, Texas 1996 Walter E. Johnson President and Chief Executive Officer, Southwest Bank of Texas, 1996 Houston, Texas Appointed by the Board of Governors Isaac H. Kempner III Chairman, Imperial Holly Corporation, Sugar Land, Texas 1994 Judy Ley Allen Partner and Administrator, Allen Investments, Houston, Texas 1995 Robert C. McNair Chairman and Chief Executive Officer, Cogen Technologies, Inc., 1996 Houston, Texas SAN ANTONIO BRANCH Appointed by the Federal Reserve Bank T. Jack Moore III Owner and Manager, T. J. Moore Lumber Inc., Ingram, Texas 1994 Gregory W. Crane President and Chief Executive Officer, Broadway National Bank, 1995 San Antonio, Texas Juliet V. Garcia President, University of Texas at Brownsville, Brownsville, Texas 1996 Douglas G. Macdonald President, South Texas National Bank, Laredo, Texas 1996 Appointed by the Board of Governors H. B. Zachry, Jr. Chairman and Chief Executive Officer, H. B. Zachry Company, 1994 San Antonio, Texas Carol L. Thompson Consultant and President, The Thompson Group, Austin, Texas 1995 Erich Wendl President and Chief Executive Officer, Maverick Markets, Inc., 1996 Corpus Christi, Texas DISTRICT 12—SAN FRANCISCO Class A William E. B. Siart President, First Interstate Bancorp, Los Angeles, California 1994 Carl J. Schmitt Chairman and Chief Executive Officer, University National Bank & 1995 Trust Company, Palo Alto, California Richard L. Mount Chairman, President, and Chief Executive Officer, Saratoga Bancorp, 1996 Saratoga, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 481 Term expires DISTRICT 12—Continued December 31 Class B Chairman, Tooley & Company, Investment Builders, 1994 William L. Tooley Los Angeles, California Former President and Chief Operating Officer, Portland General 1995 E. Kay Stepp Electric Company, Portland, Oregon Chairman and Chief Executive Officer, Albertson's, Inc., Boise, Idaho 1996 Gary G. Michael Class C Judith M. Runstad Partner, Foster Pepper and Shefelman, Seattle, Washington 1994 Cynthia A. Parker Executive Director, Anchorage Neighborhood Housing Services, Inc., 1995 Anchorage, Alaska James A. Vohs Chairman and Chief Executive Officer (Retired), Kaiser Foundation 1996 Health Plan, Inc., and Kaiser Foundation Hospitals, Oakland, California LOS ANGELES BRANCH Appointed by the Federal Reserve Bank Antonia Hernandez President and General Counsel, Mexican American Legal Defense and 1994 Educational Fund, Los Angeles, California William S. Randall Chief Executive Officer, Southwest Region, First Interstate Bank, 1994 Phoenix, Arizona Steven R. Sensenbach President and Chief Executive Officer, Vineyard National Bank, 1995 Rancho Cucamonga, California Thomas L. Stevens, Jr. President, Los Angeles Trade-Technical College, Los Angeles, 1996 California Appointed by the Board of Governors David L. Moore President, Western Growers Association, Newport Beach, California 1994 Anne L. Evans Chairman, Evans Hotels, San Diego, California 1995 Anita Landecker Western Regional Vice President, Local Initiatives Support 1996 Corporation, Los Angeles, California PORTLAND BRANCH Appointed by the Federal Reserve Bank Stuart H. Compton Chairman, Pioneer Trust Bank, N.A., Salem, Oregon 1994 Elizabeth K. Johnson President, TransWestern, Inc., Scappoose, Oregon 1995 Gerry B. Cameron Vice Chairman and Chief Executive Officer, U.S. Bancorp, 1996 Portland, Oregon Cecil W. Drinkward President and Chief Executive Officer, Hoffman Construction 1996 Company, Portland, Oregon Appointed by the Board of Governors William A. Hilliard Editor, The Oregonian, Portland, Oregon 1994 Carol A. Whipple Owner-Manager, Rocking C Ranch, Elkton, Oregon 1995 Ross R. Runkel Professor of Law, Willamette University, Salem, Oregon 1996 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 Federal Reserve Bulletin • May 1994 Term expires DISTRICT 12—Continued December 31 SALT LAKE CITY BRANCH Appointed by the Federal Reserve Bank June M. Morris Chief Executive Officer, Morris Air Corporation, Salt Lake City, Utah 1994 Roy C. Nelson President, Bank of Utah, Ogden, Utah 1995 Nancy Mortensen Vice President-Marketing, ZCMI, Salt Lake City, Utah 1996 Daniel R. Nelson Chairman and Chief Executive Officer, West One Bancorp, 1996 Boise, Idaho Appointed by the Board of Governors Gerald R. Sherratt President, Southern Utah University, Cedar City, Utah 1994 Richard E. Davis President and Chief Executive Officer, Salt Lake Convention & 1995 Visitors Bureau, Salt Lake City, Utah Constance G. Hogland Executive Director, Boise Neighborhood Housing Services, Inc., 1996 Boise, Idaho SEATTLE BRANCH Appointed by the Federal Reserve Bank Thomas E. Cleveland Chairman and Chief Executive Officer, Enterprise Bank of Bellevue, 1994 Bellevue, Washington Constance L. Proctor Partner, Alston, Courtnage, MacAulay & Proctor, Seattle, Washington 1995 Tomio Moriguchi President, Uwajimaya, Inc., Seattle, Washington 1996 John V. Rindlaub Chairman and Chief Executive Officer, Seafirst Bank, Seattle, 1996 Washington Appointed by the Board of Governors William R. Wiley Senior Vice President, Battelle Memorial Institute; Director, 1994 Battelle/Pacific Northwest Division; and Director, U.S. Department of Energy, Pacific Northwest Laboratory, Richland, Washington Emilie A. Adams President and Chief Executive Officer, Better Business Bureau 1995 Foundation, Seattle, Washington George F. Russell, Jr. Chairman, Frank Russell Company, Tacoma, Washington 1996 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities A3 Guide to Tabular Presentation A21 Large reporting banks A23 Branches and agencies of foreign banks Domestic Financial Statistics MONEY STOCK AND BANK CREDIT FINANCIAL MARKETS A4 Reserves, money stock, liquid assets, and debt A24 Commercial paper and bankers dollar measures acceptances outstanding A5 Reserves of depository institutions, Reserve Bank 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 A29 U.S. budget receipts and outlays A8 Federal Reserve Bank interest rates A30 Federal debt subject to statutory limitation A9 Reserve requirements of depository institutions A30 Gross public debt of U.S. Treasury—Types A10 Federal Reserve open market transactions and ownership A31 U.S. government securities dealers—Transactions FEDERAL RESERVE BANKS A32 U.S. government securities dealers—Positions and financing All Condition and Federal Reserve note statements A3 3 Federal and federally sponsored credit A12 Maturity distribution of loan and security agencies—Debt outstanding holdings MONETARY AND CREDIT AGGREGATES SECURITIES MARKETS AND CORPORATE FINANCE A13 Aggregate reserves of depository institutions and monetary base A34 New security issues—Tax-exempt state and local A14 Money stock, liquid assets, and debt measures governments and corporations A16 Deposit interest rates and amounts outstanding— A3 5 Open-end investment companies—Net sales commercial and BIF-insured banks and assets A17 Bank debits and deposit turnover A35 Corporate profits and their distribution A35 Nonfarm business expenditures on new plant and equipment COMMERCIAL BANKING INSTITUTIONS A36 Domestic finance companies—Assets and liabilities, and consumer, real estate, and business A18 Assets and liabilities, Wednesday figures credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • May 1994 Domestic Financial Statistics—Continued A55 Selected U.S. liabilities to foreign official institutions REAL ESTATE REPORTED BY BANKS A37 Mortgage markets IN THE UNITED STATES A38 Mortgage debt outstanding A55 Liabilities to and claims on foreigners A56 Liabilities to foreigners CONSUMER INSTALLMENT CREDIT A58 Banks' own claims on foreigners A59 Banks' own and domestic customers' claims on A39 Total outstanding foreigners A39 Terms A59 Banks' own claims on unaffiliated foreigners A60 Claims on foreign countries—Combined domestic offices and foreign branches FLOW OF FUNDS A40 Funds raised in U.S. credit markets REPORTED BYNONBANKING BUSINESS A42 Summary of financial transactions ENTERPRISES IN THE UNITED STATES A43 Summary of credit market debt outstanding A44 Summary of financial assets and liabilities A61 Liabilities to unaffiliated foreigners A62 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS SELECTED MEASURES A63 Foreign transactions in securities A64 Marketable U.S. Treasury bonds and A45 Nonfinancial business activity—Selected notes—Foreign transactions measures A45 Labor force, employment, and unemployment A46 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A47 Industrial production—Indexes and gross value A49 Housing and construction A65 Discount rates of foreign central banks A50 Consumer and producer prices A65 Foreign short-term interest rates A51 Gross domestic product and income A66 Foreign exchange rates A52 Personal income and saving A67 Guide to Statistical Releases and Special Tables International Statistics SPECIAL TABLES SUMMARY STATISTICS A68 Assets and liabilities of commercial banks, A53 U.S. international transactions—Summary December 31, 1993 A54 U.S. foreign trade A74 Terms of lending at commercial banks, A54 U.S. reserve assets February 1994 A54 Foreign official assets held at Federal Reserve A78 Assets and liabilities of U.S. branches and agencies Banks of foreign banks, December 31, 1993 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) MSA Metropolitan statistical area 0 Calculated to be zero NOW Negotiable order of withdrawal Cell not applicable OCD Other checkable deposit ATS Automatic transfer service OPEC Organization of Petroleum Exporting Countries BIF Bank insurance fund OTS Office of Thrift Supervision CD Certificate of deposit PO Principal only CMO Collateralized mortgage obligation REIT Real estate investment trust FFB Federal Financing Bank REMIC Real estate mortgage investment conduit FHA Federal Housing Administration RP Repurchase agreement FHLBB Federal Home Loan Bank Board RTC Resolution Trust Corporation FHLMC Federal Home Loan Mortgage Corporation SAIF Savings Association Insurance Fund FmHA Farmers Home Administration SCO Securitized credit obligation FNMA Federal National Mortgage Association SDR Special drawing right FSLIC Federal Savings and Loan Insurance Corporation SIC Standard Industrial Classification G-7 Group of Seven VA Department of Veterans Affairs GENERAL INFORMATION In many of the tables, components do not sum to totals because include not fully guaranteed issues) as well as direct obligaof rounding. tions of the Treasury. "State and local government" also in- Minus signs are used to indicate (1) a decrease, (2) a negative cludes municipalities, special districts, and other political figure, or (3) an outflow. subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • May 1994 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1993r 1993r 1994 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q1 Q2 Q3 Q4 Oct. Nov. Dec. Jan. Feb. Reserves of depository institutions2 1 Total 9.3 10.8 12.4 14.6 20.0 12.8 1.5 .4 3.6 2 Required 8.7 12.4 12.3 14.6 20.4 12.9 2.3 -7.4 9.9 3 Nonborrowed 9.5 10.6 10.9 16.0 23.1 16.9 1.7 .5 3.7 4 Monetary base3 9.5 10.2 10.6 9.9 10.6 8.5 5.5 11.4 13.3 Concepts of money, liquid assets, and debt4 5 Ml 8.3 10.7 12.0 9.4 9.0 9.7 6.5 5.4 5.3 6 M2 -1.3 2.2 2.4 2.0 .7 3.9 2.4 2.3 -1.1 7 M3 -3.2 2.1 1.0 2.3 1.7 3.7 3.6 1.2 -7.8 8 L -1.7 3.1 .9 1.5 1.8 2.7 4.4 5.0 n.a. 9 Debt 4.0 4.5 5.7 5.2 3.5 6.2 7.5 5.0 n.a. Nontransaction components 10 In M2 -5.3 -1.4 -1.7 -1.3 -3.1 1.2 .6 .8 -4.1 11 In M3 only6 -12.9 1.6 -6.6 4.0 7.5 2.6 9.7 -4.9 -44.4 Time and savings deposits Commercial banks 12 Savings, including MMDAs 3.0 5.1 4.9 3.6 .6 6.2 4.4 7.3 1.5 13 Small time -8.3 -9.2 -10.6 -7.4 -7.6 -7.4 -2.3 -7.9 -3.9 14 Large time8-9 -18.1 -.6 -7.5 -.2 6.1 -8.2 5.2 9.1 -24.0 Thrift institutions 15 Savings, including MMDAs -.2 .7 2.3 -.4 .0 -2.5 2.0 .0 -.8 16 Small time^ -20.0 -11.9 -14.4 -11.9 -11.1 -9.3 -16.2 -8.0 -11.9 17 Large time ' -14.2 -8.5 -4.5 -6.9 -1.9 -3.8 -34.0 3.9 -7.8 Money market mutual funds IK General purpose and broker-dealer -7.8 .2 -1.8 2.1 -.7 10.4 7.2 -3.4 -13.1 19 Institution-only -"17.6 -2.2 -10.5 8.8 22.0 3.1 13.6 -26.2 -98.4 Debt components4 20 Federal 7.6 10.4 9.2 5.5 -1.8 9.2 13.3 2.8 n.a. 21 Nonfederal 2.7 2.4 4.5 5.1 5.5 5.1 5.4 5.8 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 fund 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 M1. 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 1993 1994 1994 Dec. Jan. Feb. Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 374,694 374,433 373,197 372,716 373,899 371,042 377,235 371,477 371,529 372,725 U.S. government securities2 2 Bought outright—System account 332,413 332,463 332,397 333,022 332,673 332,094 331,832 332,868 331,708 332,277 3 Held under repurchase agreements ... 4,060 2,429 2,565 1,487 1,577 0 4,508 0 886 3,364 Federal agency obligations 4 Bought outright 4,706 4,510 4,401 4,522 4,522 4,497 4,437 4,437 4,413 4,382 5 Held under repurchase agreements ... 265 267 214 186 186 0 607 0 95 275 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 22 86 56 9 115 19 35 31 130 31 8 Seasonal credit 30 14 15 9 13 20 16 14 15 15 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 829 1,963 1,227 1,106 2,223 1,683 2,516 1,270 1,692 853 11 Other Federal Reserve assets 32,369 32,702 32,323 32,376 32,591 32,729 33,285 32,857 32,589 31,528 12 Gold stock 11,054 11,053 11,053 11,053 11,053 11,053 11,053 11,053 11,053 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 22,060r 22,130 22,191 22,116 22,130 22,145 22,160 22,174 22,188 22,202 ABSORBING RESERVE FUNDS 15 Currency in circulation 362,55 lr 362,849 363,787 363,762 362,758 361,780 360,874 362,426 363,957 364,905 16 Treasury cash holdings 375 401 372 470 383 383 377 375 372 373 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,469 7,523 6,263 4,035 5,647 8,778 13,224 5,960 4,691 5,985 18 Foreign 238 252 260 191 368 204 223 263 307 261 19 Service-related balances and adjustments 6,630r 6,859 6,988 6,957 7,095 6,844 6,697 7,150 7,183 6,544 20 Other 293 288 313 239 297 290 288 309 315 312 21 Other Federal Reserve liabilities and capital 9,628 9,629 9,784 9,552 9,737 9,742 9,686 9,601 9,860 9,826 22 Reserve balances with Federal Reserve Banks 29,644r 27,834 26,692 28,697 28,815 24,236 27,096 26,638 26,103 25,792 End-of-month figures Wednesday figures Dec. Jan. Feb. Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 384,226r 382,176 375,264 370,834 385,967 375,518 385,430 374,978 370,332 378,367 U.S. government securities 2 Bought outright—System account 332,015 331,995 333,404 332,913 332,301 334,706 332,102 332,508 331,286 335,098 3 Held under repurchase agreements ... 12,187 8,657 4,925 0 7,790 0 11,601 0 2,698 3,449 Federal agency obligations 4 Bought outright 4,638 4,437 4,335 4,522 4,522 4,437 4,437 4,437 4,382 4,382 5 Held under repurchase agreements ... 1,025 519 160 0 859 0 2,050 0 452 230 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 84 109 34 3 19 9 30 22 31 9 8 Seasonal credit 10 12 14 11 17 19 14 15 15 16 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 909r 2,453 384 942 7,450 3,504 1,168 4,994 146 3,735 11 Other Federal Reserve assets 33,358 33,993 32,008 32,444 33,010 32,843 34,029 33,003 31,322 31,448 12 Gold stock 11,053 11,053 11,053 11,053 11,053 11,053 11,053 11,053 11,053 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 22,101r 22,160 22,216 22,116 22,130 22,145 22,160 22,174 22,188 22,202 ABSORBING RESERVE FUNDS 15 Currency in circulation 365,277r 360,919 364,931 363,703 363,219 361,558 361,969 364,082 364,753 365,815 16 Treasury cash holdings 377 378 365 384 377 378 375 374 374 365 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 14,809 21,541 4,886 4,093 7,450 9,184 20,148 5,053 2,953 4,920 18 Foreign 386 257 191 171 235 327 301 242 385 189 19 Service-related balances and adjustments 6,571r 6,697 7,226 6,957 7,095 6,844 6,697 7,150 7,183 6,544 20 Other 397 255 373 299 297 287 310 319 324 307 21 Other Federal Reserve liabilities and capital 9,292 9,759 10,337 9,459 9,752 9,597 9,481 9,548 9,697 9,705 22 Reserve balances with Federal Reserve Banks3 28,289r 23,601 28,243 26,955 38,744 28,560 27,380 29,455 25,922 31,795 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 • May 1994 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1991 1992 1993 1993 1994 Dec. Dec. Dec. Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Reserve balances with Reserve Banks2 26,659 25,368 29,374r 26,564 27,274 28,297 29,018 29,374r 27,817 26,923 2 Total vault cash3 32,509r 34,542r 36,812 34,516 35,220r 35,184 35,655 36,812 37,907 36,295 3 Applied vault cash4, 28,872 31,172 33,484 31,203 31,863 31,739 32,278 33,484 34,254 32,671 4 Surplus vault cash 3,637r 3,370* 3,328 3,313 3,357r 3,445 3,377r 3,328 3,653 3,624 5 Total reserves6 55,532 56,540 62,858r 57,767 59,136 60,036 61,2% 62,858r 62,072 59,594 7 6 R Ex eq c u es ir s ed r es re e s rv e e r v b es al ances at Reserve Banks f .. . . . . 54,5 9 5 7 3 9 55 1 , , 3 1 8 5 5 5 61 l, , 0 7 6 9 3 5 r r 56,8 9 1 5 5 2 58 1 , , 0 0 4 9 6 0 58 1 , , 9 0 4 8 7 9 60 1 , , 1 1 9 0 5 1 61 l, , 0 7 6 9 3 5 r r 60 1 , , 6 4 2 4 4 8 58 1 , , 4 1 5 4 3 1 8 Total borrowings at Reserve Banks 192 124 82 352 428 285 89 82 73 70 9 Seasonal borrowings 38 18 31 234 236 192 75 31 15 15 10 Extended credit 1 1 0 0 0 0 0 0 0 0 Biweekly averages of daily figures for weeks ending on date indicated 1993 1994 Oct. 27 Nov. 10 Nov. 24 Dec. 8 Dec. 22 Jan. 5 Jan. 19 Feb. 2 Feb. 16 Mar. 2 1 Reserve balances with Reserve Banks2 28,798 28,017 29,742 28,999 28,950 30,367r 28,745 25,672 26,339 27,812 2 Total vault cash3 34,313 36,217r 34,894 36,494 37,202 36,489 38,241 38,108 37,475 34,617 3 Applied vault cash4, 30,946 32,767 31,566 33,125 33,821 33,279 34,691 34,152 33,651 31,282 4 Surplus vault cash 3,368 S^SCF 3,328 3,369 3,381 3,210 3,550 3,957 3,824 3,335 5 Total reserves6 59,744 60,784 61,308 62,124 62,771 63,646r 63,435 59,824 59,989 59,094 6 Required reserves 58,692 59,722 60,205 60,962 61,880 62,405r 61,759 58,557 58,878 57,940 7 Excess reserve balances at Reserve Banks ... 1,052 1,062 1,102 1,162 891 l,241r 1,676 1,267 1,112 1,154 8 Total borrowings at Reserve Banks8 205 132 74 56 59 142 74 45 95 45 9 Seasonal borrowings 189 105 68 43 34 16 11 18 15 15 10 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical institutions (that is, those whose vault cash exceeds their required reserves) to release. For ordering address, see inside front cover. satisfy current reserve requirements. 2. Excludes required clearing balances and adjustments to compensate for float 5. Total vault cash (line 2) less applied vault cash (line 3). and includes other off-balance-sheet "as-of" adjustments. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 3. Total "lagged" vault cash held by depository institutions subject to reserve (line 3). requirements. Dates refer to the maintenance periods during which the vault cash 7. Total reserves (line 5) less required reserves (line 6). can be used to satisfy reserve requirements. The maintenance period for weekly 8. Also includes adjustment credit. reporters ends sixteen days after the lagged computation period during which the 9. Consists of borrowing at the discount window under the terms and condivault cash is held. Before Nov. 25,1992, the maintenance period ended thirty days tions established for the extended credit program to help depository institutions after the lagged computation period. deal with sustained liquidity pressures. Because there is not the same need to 4. All vault cash held during the lagged computation period by "bound" repay such borrowing promptly as with traditional short-term adjustment credit, institutions (that is, those whose required reserves exceed their vault cash) plus the money market impact of extended credit is similar to that of nonborrowed the amount of vault cash applied during the maintenance period by "nonbound" reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1994, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Jan. 3 Jan. 10 Jan. 17 Jan. 24 Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 71,013 72,206 69,412 69,901 68,093 70,698 68,647 69,380 67,817 2 For all other maturities 14,689 13,159 13,339 14,008 13,283 13,412 13,216 12,394 12,273 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 15,197 14,680 15,997 22,299 18,438 21,005 19,805 21,562 22,806 4 For all other maturities 22,201 20,858 19,981 19,147 17,826 17,033 17,192 16,883 17,384 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 18,065 18,506 17,572 18,277 16,634 17,903 21,082 19,800 19,883 6 For all other maturities 33,334 ,,3344,,774455 33,997 32,358 32,764 30,461 31,191 29,355 31,065 All other customers 7 For one day or under continuing contract 30,785 30,371 30,158 31,539 33,268 30,489 29,660 30,076 30,743 8 For all other maturities 17,948 15,758 16,372 16,307 16,856 16,281 17,279 18,224 17,615 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 47,233 44,243 42,538 46,578 46,844 47,399 44,030 43,221 41,945 10 To all other specified customers 26,497 24,657 26,425 28,110 28,735 29,225 24,482 24,542 24,834 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, Data in this table also appear in the Board's H.5 (507) weekly statistical release. foreign banks and official institutions, and U.S. government agencies. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic NonfinancialS tatistics • May 1994 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 4/ O 1/ n 9 4 Effective date Previous rate 4/ O 1/ n 9 4 Effective date Previous rate 4/ O 1/ n 9 4 Effective date Previous rate Boston 3 7/2/92 3.5 3.6 3/30/94 3.5 4.1 3/30/94 4.0 New York 7/2/92 3/30/94 3/30/94 Philadelphia 7/2/92 3/30/94 3/30/94 Cleveland 7/6/92 3/30/94 3/30/94 Richmond 7/2/92 3/30/94 3/30/94 Atlanta 7/2/92 3/30/94 3/30/94 Chicago 7/2/92 3/30/94 3/30/94 St. Louis 7/7/92 3/30/94 3/30/94 Minneapolis 7/2/92 3/30/94 3/30/94 Kansas City 7/2/92 3/30/94 3/30/94 Dallas 7/2/92 3/30/94 3/30/94 San Francisco ... 3 7/2/92 3.5 3.6 3/30/94 3.5 4.1 3/30/94 4.0 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o a f n k Effective A le l v l e F l) . — R. B o a f n k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 6 6 1981--May 5 13-14 14 1986—Aug. 21 5.5-6 5.5 14 14 22 5.5 5.5 1978—Jan. 9 6-6.5 6.5 Nov. 7 13-14 13 20 6.5 6.5 6 13 13 11998877——SSeepptt.. 44 5.5-6 6 May 11 6.5-7 7 Dec. 4 12 12 1111 6 6 12 7 7 July 3 7-7.25 7.25 1982---JJuullyy 70 11.5-12 11.5 1988—Aug. 9 6-6.5 6.5 10 7.25 7.25 73 11.5 11.5 11 6.5 6.5 Aug. 21 7.75 7.75 AAuugg.. 7 11-11.5 11 Sept. 22 8 8 3 11 11 1989—Feb. 24 6.5-7 7 Oct. 16 8-8.5 8.5 16 10.5 10.5 27 7 7 20 8.5 8.5 77 10-10.5 10 Nov. 1 8.5-9.5 9.5 30 10 10 1990—Dec. 19 6.5 6.5 3 9.5 9.5 Oct. 1? 9.5-10 9.5 n 9.5 9.5 1991—Feb. 1 6-6.5 6 1979—July 20 10 10 Nov. 77 9-9.5 9 4 6 6 Aug. 17 10-10.5 10.5 76 9 9 Apr. 30 5.5-6 5.5 20 10.5 10.5 Dec. 14 8.5-9 9 May 2 5.5 5.5 Sept. 19 10.5-11 11 IS 8.5-9 8.5 Sept. 13 5-5.5 5 21 11 11 17 8.5 8.5 17 5 5 Oct. 8 11-12 12 Nov. 6 4.5-5 4.5 10 12 12 1984-——AApprr.. 9 8.5-9 9 7 4.5 4.5 n 9 9 Dec. 20 3.5-4.5 3.5 1980—Feb. 15 12-13 13 Nov. 71 8.5-9 8.5 24 3.5 3.5 19 13 13 76 8.5 8.5 May 29 12-13 13 Dec. 74 8 8 1992—July 2 3-3.5 3 30 12 12 7 3 3 June 13 11-12 11 1985-——MMaayy 70 7.5-8 7.5 16 11 11 74 7.5 7.5 29 10 10 IInn eeffffeecctt AApprr.. 11,, 11999944 3 3 July 28 10-11 10 1986-—Mar. 7 7-7.5 7 Sept. 26 11 11 10 7 7 Nov. 17 12 12 Apr. 71 6.5-7 6.5 Dec. 5 12-13 13 July 11 6 6 1. Available on a short-term basis to help depository institutions meet tempo- ordinarily is charged on extended-credit loans outstanding less than thirty days; rary needs for funds that cannot be met through reasonable alternative sources. however, at the discretion of the Federal Reserve Bank, this time period may be The highest rate established for loans to depository institutions may be charged on shortened. Beyond this initial period, a flexible rate somewhat above rates on adjustment-credit loans of unusual size that result from a major operating problem market sources of funds is charged. The rate ordinarily is reestablished on the first at the borrower's facility. business day of each two-week reserve maintenance period, but it is never less 2. Available to help relatively small depository institutions meet regular than the discount rate applicable to adjustment credit plus 50 basis points. seasonal needs for funds that arise from a clear pattern of intrayearly movements 4. For earlier data, see the following publications of the Board of Governors: in their deposits and loans and that cannot be met through special industry Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual lenders. The discount rate on seasonal credit takes into account rates on market Statistical Digest, 1970-1979. sources of funds and ordinarily is reestablished on the first business day of each In 1980 and 1981, the Federal Reserve applied a surcharge to short-term two-week reserve maintenance period; however, it is never less than the discount adjustment-credit borrowings by institutions with deposits of $500 million or more rate applicable to adjustment credit. that had borrowed in successive weeks or in more than four weeks in a calendar 3. May be made available to depository institutions when similar assistance is quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, not reasonably available from other sources, including special industry lenders. 1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge Such credit may be provided when exceptional circumstances (including sus- was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5, tained deposit drains, impaired access to money market funds, or sudden 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 deterioration in loan repayment performance) or practices involve only a partic- percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the ular institution, or to meet the needs of institutions experiencing difficulties surcharge was changed from a calendar quarter to a moving thirteen-week period. adjusting to changing market conditions over a longer period (particularly at times The surcharge was eliminated on Nov. 17, 1981. of deposit disintermediation). The discount rate applicable to adjustment credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt22 Percentage of Effective date deposits Net transaction accounts3 1 $0 million-$51.9 million 33333 1111122222/////2222211111/////9999933333 2 More than $51.9 million4 1111100000 1111122222/////2222211111/////9999933333 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 1. Required reserves must be held in the form of deposits with Federal Reserve permit no more than six preauthorized, automatic, or other transfers per month, Banks or vault cash. Nonmember institutions may maintain reserve balances with of which no more than three may be checks, are not transaction accounts (such a Federal Reserve Bank indirectly on a pass-through basis with certain approved accounts are savings deposits). institutions. For previous reserve requirements, see earlier editions of the Annual The Monetary Control Act of 1980 requires that the amount of transaction Report or the Federal Reserve Bulletin. Under provisions of the Monetary accounts against which the 3 percent reserve requirement applies be modified Control Act, depository institutions include commercial banks, mutual savings annually by 80 percent of the percentage change in transaction accounts held by banks, savings and loan associations, credit unions, agencies and branches of all depository institutions, determined as of June 30 each year. Effective Dec. 21, foreign banks, and Edge Act corporations. 1993, for institutions reporting quarterly and weekly, the amount was increased 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law from $46.8 million to $51.9 million. 97-320) requires that $2 million of reservable liabilities of each depository 4. The reserve requirement was reduced from 12 percent to 10 percent on 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 1 Vi 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 M 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 1Vi years was reduced from 3 3. Include all deposits against which the account holder is permitted to make percent to zero on Jan. 17, 1991. withdrawals by negotiable or transferable instruments, payment orders of with- 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 drawal, and telephone and preauthorized transfers in excess of three per month percent to zero in the same manner and on the same dates as was the reserve for the purpose of making payments to third persons or others. However, money requirement on nonpersonal time deposits with an original maturity of less than market deposit accounts (MMDAs) and similar accounts subject to the rules that 1 Vi years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancialS tatistics • May 1994 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1993 1994 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999911 11999922 11999933 July Aug. Sept. Oct. Nov. Dec. Jan. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 20,158 14,714 17,717 0 902 366 1,396 5,9IR 1,394 0 2 Gross sales 120 1,628 0 0 0 0 0 0 0 0 3 Exchanges 277,314 308,699 332,229 35,943 27,775 31,128 25,783 27,641 33,536 28,986 4 Redemptions 1,000 1,600 468 0 0 0 468 0 0 0 Others within one year 5 Gross purchases 3,043 1,096 1,223 0 100 411 0 0 189 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 24,454 36,662 0 0 1,497 3,074 913 5,158 2,910 0 8 Exchanges -28,090 -30,543 0 0 -5,491 -1,861 -1,566 -7,641 -2,910 0 9 Redemptions 1,000 0 0 0 0 0 0 0 0 0 One to five years 10 Gross purchases 6,583 13,118 10,350 200 1,100 2,400 0 100 2,619 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shifts -21,211 -34,478 -27,140 666 -834 -3,074 -31 -4,689 -2,910 0 13 Exchanges 24,594 25,811 0 0 3,866 1,861 1,566 5,341 2,910 0 Five to ten years 14 Gross purchases 1,280 2,818 4,168 0 500 797 0 0 1,008 0 15 Gross sales • 0 0 0 0 0 0 0 0 0 0 16 Maturity shifts -2,037 -1,915 0 -666 -432 0 -882 -272 0 0 17 Exchanges 2,894 3,532 0 0 1,100 0 0 2,300 0 0 More than ten years 18 Gross purchases 375 2,333 3,457 0 100 717 0 0 826 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,209 -269 0 0 -231 0 0 -197 0 0 21 Exchanges 600 1,200 0 0 525 0 0 0 0 0 All maturities 22 Gross purchases 31,439 34,079 36,915 200 2,702 4,691 1,396 6,01 R 6,035 0 23 Gross sales 120 1,628 0 0 0 0 0 0 0 0 24 Redemptions 1,000 1,600 468 0 0 0 468 0 0 616 Matched transactions 25 Gross sales 1,570,456 1,482,467 1,475,085 115,504 136,037 124,898 115,160 109,941 137,645 132,872 26 Gross purchases 1,571,534 1,480,140 1,475,941 117,074 135,705 122,578 112,837 112,772 136,821 133,468 Repurchase agreements 27 Gross purchases 310,084 378,374 475,447 41,190 53,053 62,905 27,693 38,493 33,751 25,818 28 Gross sales 311,752 386,257 470,723 56,246 48,263 61,399 30,397 34,072 29,577 29,348 29 Net change in U.S. Treasury securities 29,729 20,642 42,027 -13,286 7,160 3,878 -4,099 13,263R 9,386 -3,550 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 5 0 0 0 0 0 0 0 0 0 32 Redemptions 292 632 1,072 366 125 35 70 15 81 202 Repurchase agreements 33 Gross purchases 22,807 14,565 35,063 3,479 2,485 9,810 3,812 2,841 2,211 2,600 34 Gross sales 23,595 14,486 34,669 4,428 2,415 7,734 5,509 2,861 1,615 3,106 35 Net change in federal agency obligations -1,085 -554 -678 -1,315 -55 2,041 -1,767 -35 515 -708 36 Total net change in System Open Market Account 28,644 20,089 41,348 -14,601 7,105 5,919 -5,866 13,228' 9,901 -4,258 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 1994 1993 1994 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 Dec. 31 Jan. 31 Feb. 28 Consolidated condition statement ASSETS 1 Gold certificate account 11,053 11,053 11,053 11,053 11,053 11,053 11,053 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 418 439 457 453 444 372 439 446 Loans 4 To depository institutions 28 44 36 46 25 94 122 48 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 4,437 4,437 4,437 4,382 4,382 4,638 4,437 4,335 8 Held under repurchase agreements 0 2,050 0 452 230 1,025 519 160 9 Total U.S. Treasury securities 334,706 343,703 332,508 333,984 338,547 344,202 340,652 338,329 10 Bought outright2 334,706 332,102 332,508 331,286 335,098 332,015 331,995 333,404 11 Bills 163,674 161,070 161,476 160,254 164,066 160,368 160,963 162,372 12 Notes 131,460 131,460 131,460 131,311 131,311 132,076 131,460 131,311 13 Bonds 39,572 39,572 39,572 39,721 39,721 39,572 39,572 39,721 14 Held under repurchase agreements 0 11,601 0 2,698 3,449 12,187 8,657 4,925 15 Total loans and securities 339,171 350,233 336,981 338,864 343,184 349,960 345,729 342,872 16 Items in process of collection 8,593 7,005 10,076 6,121 11,995 6,454 4,326 2,435 17 Bank premises 1,054 1,054 1,054 1,054 1,055 1,055 1,054 1,053 Other assets 18 Denominated in foreign currencies3 22,391 22,342 22,355 22,368 22,279 22,340 22,336 22,769 19 All other4 9,360 10,615 9,569 7,876 8,157 9,999 10,550 8,209 20 Total assets 400,059 410,760 399,564 395,806 406,184 409,251 403,505 396,855 LIABILITIES 21 Federal Reserve notes 340,209 340,623 342,739 343,392 344,422 343,925 339,575 343,526 22 Total deposits 45,010 54,797 42,235 37,247 44,006 50,543 52,284 41,244 23 Depository institutions 35,210 34,038 36,620 33,585 38,590 34,951 30,232 35,794 24 U.S. Treasury—General account 9,184 20,148 5,053 2,953 4,920 14,809 21,541 4,886 25 Foreign—Official accounts 327 301 242 385 189 386 257 191 26 Other 287 310 319 324 307 397 255 373 27 Deferred credit items 5,243 5,859 5,042 5,470 8,051 5,491 1,887 1,748 28 Other liabilities and accrued dividends 2,450 2,448 2,388 2,517 2,515 2,489 2,462 2,514 29 Total liabilities 392,912 403,727 392,404 388,626 398,994 402,449 396,208 389,031 CAPITAL ACCOUNTS 30 Capital paid in 3,403 3,410 3,426 3,429 3,437 3,401 3,404 3,437 31 Surplus 3,401 3,401 3,401 3,401 3,401 3,401 3,401 3,401 32 Other capital accounts 342 222 333 350 353 0 492 985 33 Total liabilities and capital accounts 400,059 410,760 399,564 395,806 406,184 409,251 403,505 396,855 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 356,660 360,213 363,257 359,498 360,084 350,906 358,003 364,104 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 410,524 410,175 410,825 410,888 411,490 409,265 410,368 411,834 36 LESS: Held by Federal Reserve Banks 70,316 69,552 68,086 67,4% 67,069 65,339 70,793 68,308 37 Federal Reserve notes, net 340,209 340,623 342,739 343,392 344,422 343,925 339,575 343,526 Collateral held against notes, net: 38 Gold certificate account 11,053 11,053 11,053 11,053 11,053 11,053 11,053 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 321,138 321,552 323,668 324,321 325,351 324,854 320,504 324,455 42 Total collateral 340,209 340,623 342,739 343,392 344,422 343,925 339,575 343,526 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly 3. Valued monthly at market exchange rates. statistical release. For ordering address, see inside front cover. 4. Includes special investment account at the Federal Reserve Bank of Chicago 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities in Treasury bills maturing within ninety days. pledged with Federal Reserve Banks—and excludes securities sold and scheduled 5. Includes exchange-translation account reflecting the monthly revaluation at to be bought back under matched sale-purchase transactions. market exchange rates of foreign exchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 DomesticN onfinancialS tatistics • May 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 1994 1993 1994 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 Dec. 31 Jan. 31 Feb. 28 1 Total loans 28 44 36 46 25 94 122 48 2 Within fifteen days1 28 36 31 46 24 93 121 45 3 Sixteen days to ninety days 0 8 5 0 1 1 11 3 4 Ninety-one days to one year 0 0 0 0 0 0 00 0 5 Total acceptances 0 0 0 0 0 0 0 0 6 Within fifteen days' 0 0 0 0 0 0 0 0 7 Sixteen days to ninety days 0 0 0 0 0 0 0 0 8 Ninety-one days to one year 0 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 334,706 332,113 332,508 333,984 338,547 332,015 331,995 333,404 10 Within fifteen days' 19,139 18,041 18,200 14,160 21,749 9,262 12,028 9,168 11 Sixteen days to ninety days 74,237 73,792 77,478 81,054 78,246 81,344 79,687 84,699 12 Ninety-one days to one year 105,617 104,666 101,216 104,851 104,634 105,184 104,666 106,001 13 One year to five years 80,091 79,992 79,992 78,037 78,037 79,826 79,992 77,654 14 Five years to ten years 22,384 23,884 23,884 23,818 23,818 24,659 23,884 23,818 15 More than ten years 31,739 31,739 31,739 32,064 32,064 31,739 31,739 32,064 16 Total federal agency obligations 4,437 4,439 4,437 4,834 4,612 4,638 4,437 4,335 17 Within fifteen days1 105 2 0 817 595 180 105 318 18 Sixteen days to ninety days 754 859 884 520 520 565 754 565 19 Ninety-one days to one year 969 969 944 944 944 1,078 969 954 20 One year to five years 2,016 2,016 2,016 1,976 1,976 2,105 2,016 1,921 21 Five years to ten years 567 567 567 552 552 569 567 552 22 More than ten years 25 25 25 25 25 142 25 25 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 1994 IItteemm DD 1199 ee 99 cc 00 .. DD 1199 ee 99 cc 11 .. DD 1199 ee 99 cc 22 .. DD 11 ee 9999 cc 33 ..rr July Aug. Sept. Oct. Nov. Dec/ Jan. Feb. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 41.77 45.53 54.35 60.54 57.57 58.03 58.84 59.82 60.46 60.54 60.55 60.74 22 NNoonnbboorrrroowweedd rreesseerrvveess .. 41.44 45.34 54.23 60.45 57.32 57.68 58.41 59.53 60.37 60.45 60.48 60.67 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 41.46 45.34 54.23 60.45 57.32 57.68 58.41 59.53 60.37 60.45 60.48 60.67 44 RReeqquuiirreedd rreesseerrvveess 40.10 44.56 53.20 59.47 56.48 57.08 57.75 58.73 59.36 59.47 59.11 59.60 55 MMoonneettaarryy bbaassee 293.16r 317.12r 350.63r 385.90 371.32r 374.37r 378.08r 381.44r 384.16r 385.90 389.56 393.89 Not seasonally adjusted 6 Total reserves 43.07 46.98 56.06 62.41 57.42 57.38 58.69 59.53 60.73 62.41 62.03 59.49 7 Nonborrowed reserves .. 42.74 46.78 55.93 62.33 57.17 57.03 58.26 59.24 60.64 62.33 61.96 59.42 8 Nonborrowed reserves plus extended credit . 42.77 46.78 55.93 62.33 57.17 57.03 58.26 59.24 60.64 62.33 61.96 59.42 9 Required reserves8 41.40 46.00 54.90 61.35 56.33 56.43 57.60 58.44 59.62 61.35 60.59 58.35 10 Monetary base 296.68 321.07 354.55 390.62 372.02 374.10 377.75 380.83r 384.32r 390.62 391.00 390.82 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 11 Total reserves" 59.12 55.53 56.54 62.86 57.75 57.77 59.14 60.04 61.30 62.86 62.07 59.59 12 Nonborrowed reserves .. 58.80 55.34 56.42 62.78 57.51 57.42 58.71 59.75 61.21 62.78 62.00 59.52 13 Nonborrowed reserves plus extended credit . 58.82 55.34 56.42 62.78 57.51 57.42 58.71 59.75 61.21 62.78 62.00 59.52 14 Required reserves 57.46 54.55 55.39 61.80 56.66 56.82 58.05 58.95 60.20 61.80 60.62 58.45 15 Monetary base , 313.70 333.61 360.90 397.62 378.48 380.53 384.25 387.51 391.14r 397.62 397.89 397.92 16 Excess reserves13 1.66 .98 1.16 1.06 1.09 .95 1.09 1.09 1.10 1.06 1.45 1.14 17 Borrowings from the Federal Reserve .33 .19 .12 .24 .35 .43 .29 .09 .07 .07 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 Financial Statistics • May 1994 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1993r 1994 1990 1991 1992 1993 Dec.r Dec.r Dec/ Dec.r Nov. Dec. Jan. Feb. Seasonally adjusted Measures2 1 Ml 826.4 897.7 1,024.8 1,128.5 1,122.4 1,128.5 1,133.6 1,138.6 2 M2 3,353.0 3,455.3 3,509.0 3,564.2 3,557.0 3,564.2 3,571.0 3,567.8 3 M3 4,125.7 4,180.4 4,183.0 4,226.7 4,214.2 4,226.7 4,230.9 4,203.3 4 L 4,974.8 4,992.9 5,057.1 5,124.7 5,105.9 5,124.7 5,146.0 n.a. 5 Debt 10,670.1 11,147.3 11,721.5 12,321.5 12,244.5 12,321.5 12,373.0 n.a. Ml components 6 Currency 246.7 267.1 292.2 321.4 319.5 321.4 325.3 329.2 7 Travelers checks 7.8 7.7 8.1 7.9 7.9 7.9 7.9 7.9 8 Demand deposits5 277.9 290.0 339.6 384.9 383.2 384.9 388.5 390.5 9 Other checkable deposits 294.0 332.8 384.9 414.3 411.8 414.3 412.0 411.1 Nontransaction components 10 In M2 2,526.6 2,557.6 2,484.3 2,435.7 2,434.5 2,435.7 2,437.4 2,429.1 11 In M38 772.7 725.2 674.0 662.6 657.3 662.6 659.9 635.5 Commercial banks 12 Savings deposits, including MMDAs 582.1 665.5 754.6 785.3 782.4 785.3 790.1 791.1 13 Small time deposits' 611.3 602.9 508.7 468.6 469.5 468.6 465.5 464.0 14 Large time deposits ' 368.6 342.4 292.8 277.5 276.3 277.5 279.6 274.0 Thrift institutions 15 Savings deposits, including MMDAs 338.3 375.6 429.0 430.2 429.5 430.2 430.2 429.9 16 Small time deposits 563.2 464.5 361.8 314.2 318.5 314.2 312.1 309.0 17 Large time deposits 120.9 83.4 67.5 61.7 63.5 61.7 61.9 61.5 Money market mutual funds 18 General purpose and broker-dealer 355.5 370.4 352.0 349.9 347.8 349.9 348.9 345.1 19 Institution-only 135.0 181.0 201.5 197.0 194.8 197.0 192.7 176.9 Debt components 20 Federal debt 2,490.7 2,763.8 3,068.4 3,327.9 3,291.4 3,327.9 3,335.6 n.a. 21 Nonfederal debt 8,179.4 8,383.5 8,653.1 8,993.6 8,953.1 8,993.6 9,037.4 n.a. Not seasonally adjusted Measures2 22 Ml 843.8 916.7 1,046.7 1,153.9 1,129.6 1,153.9 1,142.9 1,124.7 23 M2 3,366.0 3,470.4 3,527.6 3,586.8 3,565.7 3,586.8 3,577.7 3,555.7 24 M3 4,135.5 4,191.9 4,198.2 4,246.1 4,225.8 4,246.1 4,231.8 4,194.1 25 L 4,997.2 5,018.0 5,087.6 5,159.5 5,127.0 5,159.5 5,160.3 n.a. 26 Debt 10,667.7 11,144.6 11,723.3 12,321.4 12,231.4 12,321.4 12,358.6 n.a. Ml components 27 Currency1 , 249.5 269.9 295.0 324.9 319.8 324.9 324.0 327.3 28 Travelers checks4 7.4 7.4 7.8 7.6 7.7 7.6 7.7 7.7 29 Demand deposits 289.9 303.1 355.1 402.7 391.2 402.7 393.3 380.8 30 Other checkable deposits6 297.0 336.3 388.9 418.6 410.9 418.6 417.9 409.0 Nontransaction components 31 In M2 2,522.3 2,553.7 2,480.9 2,432.9 2,436.0 2,432.9 2,434.8 2,430.9 32 In M38 769.5 721.6 670.5 659.3 660.2 659.3 654.1 638.4 Commercial banks 33 Savings deposits, including MMDAs 580.8 664.0 752.9 783.8 784.0 783.8 786.1 787.7 34 Small time deposits 610.5 601.9 507.8 467.6 468.8 467.6 465.6 463.9 35 Large time deposits10, " 367.7 341.3 291.7 276.4 276.6 276.4 276.6 272.3 Thrift institutions 36 Savings deposits, including MMDAs 337.6 374.8 428.1 429.3 430.4 429.3 428.0 428.0 37 Small time deposits 562.4 463.8 361.2 313.6 318.0 313.6 312.1 308.8 38 Large time deposits1 120.6 83.1 67.2 61.4 63.5 61.4 61.2 61.2 Money market mutual funds 39 General purpose and broker-dealer 353.8 368.5 350.2 348.3 345.8 348.3 349.3 350.8 40 Institution-only 134.7 180.4 200.4 195.8 194.0 195.8 196.2 186.1 Repurchase agreements and Eurodollars 41 Overnight 77.3 80.6 80.7 90.3 89.1 90.3 93.6 91.7 42 Term 158.3 130.1 126.7 141.4 142.8 141.4 135.4 134.4 Debt components 43 Federal debt 2,491.3 2,765.0 3,069.8 3,329.5 3,287.0 3,329.5 3,333.0 n.a. 44 Nonfederal debt 8,176.3 8,379.7 8,653.5 8,992.0 8,944.4 8,992.0 9,025.6 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 Financial Statistics • May 1994 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1993 1994 1991 1992 Dec. Dec. June July Aug. Sept. Oct. Nov. Dec.r Jan. Feb. Interest rates (annual effective yields) INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts ... 3.76 2.33 2.09 2.06 2.01 1.96 1.92 1.89 1.86 1.84 1.82 2 Savings deposits2 4.30 2.88 2.61 2.59 2.55 2.51 2.49 2.48 2.46 2.46 2.43 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 4.18 2.90 2.68 2.67 2.66 2.63 2.63 2.64 2.65 2.65 2.68 4 92 to 182 days 4.41 3.16 2.97 2.97 2.% 2.92 2.91 2.92 2.91 2.90 2.93 5 183 days to 1 year 4.59 3.37 3.19 3.18 3.17 3.13 3.11 3.13 3.13 3.14 3.18 6 More than 1 year to 2 Vi years 4.95 3.88 3.65 3.64 3.63 3.55 3.54 3.54 3.55 3.56 3.61 7 More than 2Vi years 5.52 4.77 4.44 4.43 t 4.40 4.28 4.27 4.28 4.29 4.31 4.35 BIF-INSURED SAVINGS BANKS3 8 Negotiable order of withdrawal accounts ... 4.44 2.45 2.13 2.09 2.07 2.01 1.98 1.95 1.87 1.89 1.88 9 Savings deposits2 4.97 3.20 2.88 2.83 2.80 2.73 2.68 2.65 2.63 2.62 2.64 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 4.68 3.13 2.86 2.80 2.79 2.76 2.75 2.73 2.70 2.69 2.69 11 92 to 182 days 4.92 3.44 3.17 3.15 3.12 3.05 3.05 3.03 3.02 3.03 3.04 12 183 days to 1 year 4.99 3.61 3.44 3.40 3.37 3.33 3.34 3.32 3.31 3.33 3.34 13 More than 1 year to 2Vi years 5.23 4.02 3.79 3.72 3.73 3.69 3.68 3.69 3.66 3.72 3.76 14 More than 2Vi years 5.98 5.00 4.75 4.73 4.73 4.62 4.57 4.60 4.62 4.61 4.66 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts ... 244,637 286,541 287,555 284,4% 287,675 286,056 289,813 297,329 305,223 293,806 295,573 16 Savings deposits2 652,058 738,253 754,790 757,716 761,919 758,835 765,372 770,609 766,413 771,559 776,218 17 Personal 508,191 578,757 592,545 593,448 593,318 592,028 595,715 598,200 597,838 606,615 611,767 18 Nonpersonal 143,867 159,4% 162,245 164,268 168,601 166,807 169,657 172,408 168,575 164,944 164,451 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 47,094 38,474 31,743 30,803 30,017 30,384 30,022 29,730 29,455 29,312 29,572 20 92 to 182 days 158,605 127,831 114,846 112,497 109,603 108,574 108,504 109,228 110,069 109,110 109,274 21 183 days to 1 year 209,672 163,098 156,549 156,431 155,074 152,501 149,758 147,334 146,565 144,037 143,507 22 More than 1 year to 2Vi years 171,721 152,977 144,804 143,605 141,377 139,406 139,042 139,315 141,223 141,204 140,918 23 More than 2Vi years 158,078 169,708 179,297 180,983 181,762 184,414 183,790 180,972 181,528 182,193 181,221 24 IRA/Keogh Plan deposits 147,266 147,350 146,523 146,1% 145,955 145,636 144,776 145,002 143,985 143,875 143,409 BIF-INSURED SAVINGS BANKS3 25 Negotiable order of withdrawal accounts 9,624 10,871 10,313 10,457 10,468 10,471 10,548 10,852 11,151 10,7% 10,913 26 Savings deposits 71,215 81,786 77,495 78,390 78,387 78,182 77,995 77,948 80,115 78,660 78,247 27 Personal 68,638 78,695 74,569 75,049 75,153 74,978 74,737 74,664 77,035 75,445 74,972 28 Nonpersonal 2,577 3,091 2,926 3,341 3,234 3,204 3,258 3,284 3,079 3,215 3,276 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 4,146 3,867 3,022 2,871 2,928 2,886 2,839 2,778 2,793 2,737 2,739 30 92 to 182 days 21,686 17,345 13,808 13,773 13,525 13,261 13,131 12,926 12,946 13,094 13,202 31 183 days to 1 year 29,715 21,780 18,427 18,454 18,143 17,798 17,441 17,178 17,426 17,418 17,491 32 More than 1 year to 2Vi years 25,379 18,442 15,972 16,250 16,200 16,161 16,124 15,995 16,546 16,281 16,390 33 More than 2Vi years 18,665 18,845 18,989 19,229 19,331 19,610 19,657 19,645 20,464 20,630 20,991 34 IRA/Keogh Plan accounts 23,007 21,713 19,855 19,920 19,802 19,766 19,601 19,382 19,356 19,395 19,522 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 Julyr Aug/ Sept/ Oct/ Nov. Dec. DEBITS Seasonally adjusted Demand deposits3 1 All insured banks 277,763.7r 315,812.2r 334,165.1 330,668.5 333,750.6 360,304.3 327,497.9 360,492.1 368,461.0 2 Major New York City banks 137,352.9r 165,573.5r 171,418.8 166,663.8 169,093.8 185,675.0 166,671.1 187,185.5 190,076.8 3 Other banks 140,410.8r 150,238.7r 162,746.4 164,004.7 164,656.8 174,629.3 160,826.8 173,306.7 178,384.2 4 Other checkable deposits4 3,645.5 3,788.1 3,480.3 3,365.4 3,441.4 3,490.8 3,302.4 3,590.9 3,679.1 5 Savings deposits (including MMDAs) 3,266.1 3,331.5r 3,536.0 3,634.3 3,500.3 3,734.0 3,398.3 3,782.3 3,855.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 803.5 832.4 784.3 777.7 769.0 824.3 729.8 796.3 833.9 7 Major New York City banks 4,270.7r 4,797.6r 4,201.0 4,293.9 4,040.3 4,254.4 3,907.6 4,249.4 4,672.6 8 Other banks 447.9 435.9 422.4 424.5 419.9 443.8 396.0 424.1 444.6 9 Other checkable deposits4 16.2 14.4 11.9 11.4 11.6 11.7 11.0 11.9 12.1 10 Savings deposits (including MMDAs)5 5.3 4.7 4.6 4.7 4.5 4.8 4.4 4.9 5.0 DEBITS Not seasonally adjusted Demand deposits3 11 All insured banks 277,715.4 315,808.2 333,956.4 332,888.4 342,539.4 347,849.8 335,861.9 344,003.5 380,135.5 12 Major New York City banks 137,307.2 165,595.0 171,283.5 168,018.4 174,674.7 179,869.7 172,675.6 180,990.2 194,541.0 13 Other banks 140,408.3 150,213.3 162,672.9 164,870.1 167,864.7 167,980.2 163,186.3 163,013.3 185,594.5 14 Other checkable deposits4 3,645.6 3,788.1 3,478.5 3,290.8 3,369.1 3,493.3 3,293.5 3,335.8 3,848.1 15 Savings deposits (including MMDAs) 3,267.7 3,329.0 3,532.8 3,643.7 3,529.6 3,536.4 3,328.6 3,497.3 4,055.7 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 803.4 832.5 784.0 778.0 802.5 798.5 748.5 753.2 819.2 17 Major New York City banks 4,274.3 4,803.5 4,197.2 4,280.6 4,307.8 4,196.6 4,059.2 4,129.6 4,387.7 18 Other banks 447.9 436.0 422.4 424.3 434.6 427.7 401.8 394.8 442.2 19 Other checkable deposits4 16.2 14.4 11.9 11.3 11.5 11.8 11.1 11.1 12.5 20 Savings deposits (including MMDAs) 5.3 4.7 4.6 4.8 4.6 4.6 4.3 4.5 5.2 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 Financial Statistics • May 1994 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures Billions of dollars 1993 1993r 1994r 1994" Feb. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 ALL COMMERCIAL BANKING INSTITUTIONS2 Seasonally adjusted Assets 1 Bank credit 2,970.6 3,(ray 3,073.6 3,075.2 3,090.1 3,102.8 3,122.7 3,136.5 3,128.6" 3,138.9" 3,138.5" 3,125.4" 2 Securities in bank credit 857.1 902.6r 904.8 901.2 905.7 915.1 928.8 934.0 929.7" 932.1" 932.8" 929.7" 3 U.S. government securities ... 679.5 717.9 720.0 717.9 722.3 730.2 735.1 734.8 728.8 732.1 733.5 734.0" 4 Other securities 177.7 184.7" 184.8 183.2 183.4 184.9 193.7 199.1 200.9" 199.9" 199.3" 195.8" Loans and leases in bank credit2. 2,113.5 2,163.3 2,168.9 2,174.1 2,184.4 2,187.7 2,193.9 2,202.5 2,198.9" 2,206.8 2,205.7 2,195.7 6 Commercial and industrial 595.3 589.lr 586.9 586.5 585.3 584.8 589.9 592.0 591.3" 593.0" 593.0" 591.2" 7 Real estate 901.6 920.2r 923.4 925.7 929.7 934.2 936.2 935.1 937.0" 936.5" 935.4" 932.7 8 Revolving home equity 73.9 74.7 74.4 73.8 73.4 73.1 72.8 72.9 72.9 73.0 72.8 72.8 9 Other 827.8 845.6r 849.0 851.9 856.3 861.1 863.5 862.2 864.1" 863.6" 862.6" 859.9" 10 Consumer 363.6 378.2r 380.4 384.4 387.5 389.7 392.3 395.7 394.3" 395.7" 395.7" 394.9" 11 Security3 62.6 80.2 82.1 81.3 87.1 86.1 79.3 80.7 81.5 81.5 83.3 76.4 12 Other 190.3 195.6r 196.1 196.2 194.8 192.8 196.0 199.1 194.8" 200.1" 198.2" 200.4" N Interbank loans4 152.3 155.0 152.1 151.8 154.9 154.3 155.3 156.0 158.5 154.6 156.2 158.1 14 Cash assets5 212.1 219.9 225.5 220.2 218.4 218.6 219.0 224.7 221.0 233.4 206.1 235.3 15 Other assets6 215.0 218 .r 220.9 218.5 217.7 215.6 221.3 224.4 224.0" 226.7" 221.3" 226.4" 16 Total assets7 3,489.0 3,599.4r' 3,612.3 3,606.4 3,622.0 3,632.5 3,659.9 3,683.6 3,674.1" 3,695if 3,664.2" 3,687.4" Liabilities 17 Deposits 2,499.0 2,520.0 2,524.2 2,524.2 2,533.3 2,537.8 2,537.4 2,531.3 2,527.3 2,540.4 2,522.2 2,534.3 18 Transaction 748.9 799.1 808.7 810.0 815.9 818.0 814.7 816.9 812.7 823.5 803.6 822.8 19 Nontransaction 1,750.0 1,720.9 1,715.5 1,714.2 1,717.4 1,719.7 1,722.6 1,714.4 1,714.6 1,716.9 1,718.7 1,711.6 20 Large time 371.1 346.8 344.2 346.3 347.6 350.1 348.5 340.2 341.4 342.5 342.0 339.0 21 Other 1,378.9 1,374.1 1,371.3 1,367.9 1,369.8 1,369.6 1,374.1 1,374.2 1,373.2 1,374.4 1,376.7 1,372.5 22 Borrowings 492.8 516.7r 530.1 515.5 514.9 546.1 572.6 549.4 591.9 564.0 532.2 543.2 23 From banks in the U.S 151.8 156.4 150.9 154.1 155.6 155.3 153.4 153.5 152.4 153.1 154.9 154.5 24 From nonbanks in the U.S 340.9 360.3r 379.2 361.4 359.2 390.8 419.3 395.9 439.5 411.0 377.3 388.7 25 Net due to related foreign offices 73.5 118.3 126.1 123.8 121.6 119.1 115.9 135.9 129.0 136.4 136.0 133.3 26 Other liabilities8 147.0 149.0 146.0 144.4 143.6 142.0 154.2 161.1 160.3" 161.2" 162.8" 159.3" 27 Total liabilities 3,212.2 3,304.0" 3,326.4 3,307.9 3,313.3 3,345.0 3,380.1 3,377.7 3,408.4" 3,401.9" 3353.2" 3,370.0" 28 Residual (assets less liabilities)9.... 276.8 295.4r 285.9 298.5 308.7 287.6 279.8 306.0 265.7" 293.8" 311.0" 317.3" Not seasonally adjusted Assets 29 Bank credit 2,967.8 3,058. r 3,074.5 3,077.9 3,101.0 3,118.6 3,123.8 3,135.0 3,135.7" 3,138.2" 3,139.6" 3,114.7" 30 Securities in bank credit 856.7 901,2r 906.4 903.3 911.1 914.6 924.8 933.8 930.2" 931.9" 934.8" 927.0" 31 U.S. government securities ... 678.3 717.0 721.7 719.5 726.4 729.7 731.2 733.5 728.7 731.1 733.6 731.1" 32 Other securities 178.4 184.2r 184.8 183.8 184.7 184.9 193.6 200.3 201.4" 200.8" 201.2" 195.9" 33 Loans and leases in bank credit2. 2,111.1 2,156.9 2,168.1 2,174.5 2,189.9 2,204.0 2,199.0 2,201.2 2,205.5 2,206.4 2,204.8 2,187.7 34 Commercial and industrial .... 594.4 585.8r 583.4 584.5 586.1 586.8 589.2 591.2 590.7" 590.7" 592.2" 589.3" 35 Real estate 898.0 920.4r 923.9 928.1 932.1 937.4 934.7 931.7 934.1" 935.0" 932.3" 927.7" 36 Revolving home equity 73.6 74.7 74.7 74.4 73.8 73.3 72.9 72.6 72.7 72.8 72.7 72.5 37 Other 824.3 845.8r 849.2 853.6 858.3 864.1 861.8 859.0 861.2" 862.3" 859.6" 855.1" 38 Consumer 364.6 377.6r 381.5 384.4 387.7 394.1 396.8 396.9 397.1" 397.8" 397.3" 396.0" 39 Security3 66.0 77.6 81.5 80.1 87.1 88.0 81.6 85.2 87.1 86.1 86.4 80.9 40 Other 188.1 195.5r 197.7 197.5 196.8 197.7 196.7 196.1 196.5" 196.7" 196.6." 193.8" 41 Interbank loans3 153.7 152.1 150.2 150.8 156.4 162.8 159.4 156.6 162.5 155.2 159.2 154.4 42 Cash assets2 207.7 214.2 227.4 219.5 225.9 231.8 223.9 219.3 219.9 207.9 214.9 229.5 43 Other assets6 214.6 217.0" 222.1 221.0 220.6 219.8 223.7 223.9 228.0" 225.6" 221.2" 223.6" 44 Total assets7 3,482.3 3,581.6r 3,614.3 3,610.1 3,644.4 3,673.7 3,672.7 3,676.4 3,688.0" 3,668.6" 3,676.5" 3,663.9" Liabilities 45 Deposits 2,490.3 2,509.0 2,522.8 2,516.1 2,544.0 2,566.5 2,540.7 2,521.1 2,525.7 2,513.7 2,529.1 2,509.2 46 Transaction 741.3 784.2 806.9 804.1 827.5 852.5 824.3 807.8 815.9 796.6 812.0 799.5 47 Nontransaction 1,749.0 1,724.8 1,715.9 1,712.0 1,716.5 1,714.0 1,716.3 1,713.3 1,709.8 1,717.1 1,717.1 1,709.7 48 Large time 371.5 348.5 343.7 342.4 344.5 346.3 345.0 340.6 339.6 343.2 341.4 339.8 49 Other 1,377.5 1,376.3 1,372.1 1,369.6 1,372.1 1,367.8 1,371.4 1,372.7 1,370.3 1,373.9 1,375.7 1,369.9 50 Borrowings 497.9 519.8r 530.0 526.4 528.4 535.3 548.2 548.6 564.6 555.0 540.8 543.8 51 From banks in the U.S 154.4 152.6 150.7 151.4 156.9 163.2 159.7 156.7 162.7 155.3 159.3 154.5 52 From nonbanks in the U.S 343.4 367.2r 379.3 375.1 371.5 372.1 388.5 391.9 401.9 399.7 381.5 389.3 53 Net due to related foreign offices 75.0 110.6 118.6 124.3 124.4 126.4 124.0 138.8 128.6 133.5 136.5 145.1 54 Other liabilities8 147.2 148.6 146.6 147.1 149.5 145.5 156.4 161.2 162.1" 161.1" 162.8" 158.9" 55 Total liabilities 3,210.4 3,288.0" 3317.9 3,314.0 3,346.3 3,373.6 3,369.3 3,369.7 3,381.0" 3,363.2" 3,369.2" 3,357.0" 56 Residual (assets less liabilities)9 271.9 293.6r 296.4 296.0 298.2 300.1 303.5 306.8 307.0" 305.4" 307.4" 306.9" Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A19 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures—Continued Billions of dollars 1993 1993r 1994r 1994r AAccccoouunntt Feb. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 DOMESTICALLY CHARTERED COMMERCIAL BANKS Seasonally adjusted Assets 57 Bank credit 2,644.3 2,721.6r 2,732.3 2,736.9 2,751.2 2,764.0 2,784.2 2,792.4 2,789. lr 22,,779900..00** 2,792.8* 22,,778811..77** 58 Securities in bank credit 791.3 824.5r 826.9 822.8 826.5 834.3 846.2 849.9 847.6r 848.2* 848.5* 844.4* 59 U.S. government securities .. 635.9 664.6 667.2 665.0 668.2 673.6 677.5 675.7 671.5 673.0 674.2* 674.1 60 Other securities 155.4 159.8r 159.8 157.8 158.4 160.6 168.7 174.2 176. lr 175.2 174.4* 170.3* 61 Loans and leases in bank credit2 . 1,853.1 1,897.2 1,905.3 1,914.1 1,924.7 1,929.7 1,938.0 1,942.6 1,941.5 1,941.8 1,944.3 1,937.3 6? Commercial and industrial ... 440.6 434.3r 433.8 433.6 433.7 434.7 439.1 441.2 441.5r 440.8* 441.8* 440.5* 63 Real estate 850.1 872. lr 875.5 878.4 882.8 888.3 891.7 891.0 892.7r 892.2* 891.2* 888.7* 64 Revolving home equity 73.8 74.7 74.3 73.8 73.4 73.0 72.7 72.8 72.9 73.0 72.8 72.8 65 Other 776.3 797,4r 801.2 804.6 809.5 815.2 819.0 818.1 819.8r 819.2* 818.4* 815.9* 66 Consumer 363.6 378.2r 380.4 384.4 387.5 389.7 392.3 395.7 394.3r 395.7* 395.7* 394.9* 67 Security3 43.1 54.6 56.4 56.5 59.6 57.3 53.7 53.8 53.5 53.0 55.0 51.5 68 Other 155.6 158.0 159.3 161.2 161.0 159.7 161.1 161.0 159.5r 160.1 160.6* 161.6* 69 Interbank loans4 132.9 134.0 130.5 130.0 133.4 134.3 136.1 131.1 132.6 131.3 133.2 130.1 70 Cash assets5 185.4 193.1 198.5 193.5 192.9 193.2 193.9 200.4 195.3 209.1 180.3 212.1 71 Other assets6 170.2 172.5r 173.7 172.8 172.2 171.9 175.0 175.9 177.0* 177.3* 172.1* 179.2* 72 Total assets7 3,071.7 3,161.1' 3,175.1 3,173.8 3,190.6 3,204.6 3,231.0 3,242.2 3,236.2* 3,250.4' 3,220.6* 3,2453' Liabilities 73 Deposits 2,339.5 2,368.7 2,372.3 2,370.5 2,376.0 2,374.8 2,376.5 2,376.3 2,374.7 2,383.4 2,363.9 22,,337799..99 74 Transaction 738.3 787.4 795.9 797.4 803.4 805.9 802.3 804.0 799.7 810.6 790.7 809.7 75 Nontransaction 1,601.2 1,581.2 1,576.4 1,573.1 1,572.6 1,568.9 1,574.2 1,572.3 1,575.0 1,572.9 1,573.1 1,570.1 76 Large time 228.9 214.5 212.3 211.7 210.6 208.5 210.0 208.3 209.8 208.2 208.0 207.6 77 Other 1,372.2 1,366.7 1,364.1 1,361.4 1,362.0 1,360.4 1,364.2 1,364.1 1,365.2 1,364.6 1,365.1 1,362.5 78 Borrowings 367.3 403.0r 418.8 408.5 406.0 434.9 459.8 442.2 470.2 452.5 429.3 437.3 7799 From banks in the U.S 109.7 119.3 116.7 119.3 118.4 116.9 113.6 115.6 107.0 112.7 117.9 118.2 8800 From nonbanks in the U.S 257.6 283,7r 302.1 289.2 287.6 317.9 346.2 326.6 363.2 339.8 311.4 319.1 81 Net due to related foreign -11.6 -12.4 -7.6 -6.2 -2.7 1.5 3.4 3.3 4.6 3.4 --00..33 33..11 82 Other liabilities8 103.2 107.9 105.6 105.9 105.5 105.3 114.2 120.1 119.3* 120.8* 121.2* 118.7* 83 Total liabilities 2,798.1 2,867.1 2,889.1 2,878.7 2,884.8 2,916.6 2,953.9 2,941.9 2,968.7* 2,960.2* 2,914.1' 2,938.9' 84 Residual (assets less liabilities)9... 273.7 294.0* 286.0 295.2 305.8 288.0 277.1 300.3 267.5* 290.2* 306.5* 306.3* Not seasonally adjusted Assets 85 Bank credit 2,639.6 2,717.8* 2,736.7 2,741.9 2,759.9 2,770.6 2,777.2 2,788.6 2,787.5* 2,786.6* 2,792.4* 2,771.6* 86 Securities in bank credit 790.3 824.6r 829.9 825.6 830.6 831.5 839.8 849.1 845.2* 847.7* 849.3* 842.0* 87 U.S. government securities .. 634.7 664.9r 669.9 666.7 670.8 670.8 671.4 674.5 668.8 672.3 673.9 672.2 88 Other securities 155.6 159,7* 160.1 158.9 159.8 160.7 168.4 174.6 176.3* 175.4* 175.4* 169.8* 89 Loans and leases in bank credit2 . 1,849.3 1,893.3 1,906.7 1,916.3 1,929.3 1,939.1 1,937.5 1,939.6 1,942.3 1,938.9 1,943.1 1,929.6 90 Commercial and industrial ... 439.8 431.7r 431.5 433.1 434.4 434.7 436.6 440.5 439.9* 439.1* 441.0* 439.4* 91 Real estate 846.2 872.2r 876.0 880.7 885.2 891.6 890.3 887.4 889.6* 890.4* 887.9* 883.7* 92 Revolving home equity 73.6 74.7 74.7 74.4 73.9 73.3 72.9 72.6 72.9 72.8 72.7 72.5 93 Other 772.6 797.6r 801.3 806.2 811.3 818.3 817.5 814.8 816.8* 817.6* 815.2* 811.2* 94 Consumer 364.6 377.6r 381.5 384.4 387.7 394.1 396.8 396.9 397.1* 397.8* 397.3* 396.0* 95 Security3 44.9 53.4 56.6 55.6 59.4 56.6 53.2 55.9 56.0 54.3 57.1 53.4 96 Other 153.7 158.3 161.2 162.6 162.5 162.2 160.5 158.8 159.7* 157.3* 159.8* 157.1* 9977 Interbank loans3 135.2 132.2 128.2 128.5 135.1 139.6 139.2 133.5 138.6 135.0 137.6 126.6 9988 181.4 186.7 199.3 191.8 200.2 206.3 199.1 195.4 194.7 183.6 190.3 206.8 99 Other assets6 169.5 171.0* 175.1 175.1 173.6 173.9 176.1 175.1 179.7* 175.0* 171.9* 177.0* 100 Total assets7 3,064.3 3,148.1r 3,179.5 3,178.3 3,209.4 3,231.2 3,233.6 3,234.4 3,242.5* 3,221.9* 3,234.0* 3,223,8* Liabilities 101 2,329.9 2,357.5 2,372.1 2,368.1 2,391.1 2,406.7 2,381.4 2,365.2 2,372.2 22,,335555..88 22,,337700..99 22,,335533..22 10? Transaction 730.6 772.8 793.6 791.3 815.0 840.1 811.7 794.9 802.4 783.7 799.2 786.5 103 Nontransaction 1,599.2 1,584.7 1,578.5 1,576.9 1,576.1 1,566.6 1,569.8 1,570.3 1,569.7 1,572.1 1,571.7 1,566.7 104 Large time 229.0 215.9 213.4 212.8 211.1 207.2 208.5 208.3 208.6 208.6 208.1 207.7 105 Other 1,370.2 1,368.7 1,365.1 1,364.0 1,365.0 1,359.5 1,361.3 1,362.0 1,361.1 1,363.5 1,363.6 1,359.0 106 Borrowings 372.8 406. lr 418.1 416.4 417.6 422.6 434.5 441.6 442.4 443.4 437.5 441.0 107 From banks in the U.S 113.2 115.5 115.4 116.4 118.1 121.6 118.3 119.4 115.3 115.7 122.2 120.5 108 From nonbanks in the U.S 259.6 290.7 302.6 300.0 299.5 300.9 316.2 322.3 327.1 327.7 315.3 320.5 109 Net due to related foreign -10.3 -12.8 -8.9 -6.6 -3.3 -1.8 3.0 5.4 4.8 22..11 11..55 99..00 110 Other liabilities8 102.8 107.6 106.3 108.9 110.3 108.0 115.5 119.6 564.6 555.0 540.8 543.8 111 Total Uabilities 2,795.3 2,858.4r 2,887.5 2,886.8 2,915.7 2,935.5 2,934.4 2,931.9 2,939.6* 2,920.7* 2,930.8* 2,921.2* 112 Residual (assets less liabilities)9... 269.1 289.7r 292.0 291.5 293.7 295.7 299.2 302.5 302.9* 301.1* 303.1* 302.6* Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • May 1994 NOTES TO TABLE 1.26 1. Covers the following types of institutions in the fifty states and the District 4. Consists of federal funds sold to, reverse repurchase agreements with, and of Columbia: domestically chartered commercial banks that submit a weekly loans to commercial banks in the United States. report of condition (large domestic); other domestically chartered commercial 5. Includes vault cash, cash items in process of collection, demand balances banks (small domestic); branches and agencies of foreign banks; New York State due from depository institutions in the United States, balances due from Federal investment companies, and Edge Act and Agreement corporations (foreign- Reserve Banks, and other cash assets. related institutions). Excludes international banking facilities. Data are Wednes- 6. Excludes the due-from position with related foreign offices, which is day values, or pro rata averages of Wednesday values. Large domestic banks included in lines 25, 53, 81, and 109. constitute a universe; small domestic and foreign-related institutions are estimated 7. Excludes unearned income, reserves for losses on loans and leases, and based on weekly samples and on quarter-end condition reports. Data are adjusted reserves for transfer risk. Loans are reported gross of these items. for breaks caused by reclassifications of assets and liabilities. 8. Excludes the due-to position with related foreign offices, which is included in 2. Excludes federal funds sold to, reverse repurchase agreements with, and lines 25, 53, 81, and 109. loans to commercial banks in the United States. 9. Assets and liabilities. This balancing item is not intended as a measure of 3. Consists of reserve repurchase agreements with broker-dealers and loans to equity capital for use in capital adequacy analysis. purchase and carry securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1993 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 ASSETS 1 Cash and balances due from depository institutions 127,680 119,847 114,463 139,888 114,346 117,027 112,452 115,217 127,359 2 U.S. Treasury and government securities 302,868 308,747 308,056 306,256 300,318 303,996 303,462 306,414 303,615 3 Trading account 20,962 24,052 23,436 27,414 24,538 24,428 24,145 26,645 24,452 4 Investment account 281,905 284,695 284,620 278,842 275,780 279,567 279,317 279,769 279,163 5 Mortgage-backed securities 90,589 89,948 89,908 88,635 87,890 88,372 87,940 88,478 89,291 All others, by maturity 6 One year or less 52,226 52,877 51,255 50,756 49,974 49,222 48,277 47,918 47,666 7 One year through five years 72,841 73,707 74,596 72,477 72,210 73,288 74,001 75,410 73,956 8 More than five years 66,250 68,162 68,862 66,975 65,706 68,685 69,099 67,963 68,249 9 Other securities 70,194 78,606 77,162 76,766 77,680 87,922 87,057 87,321 81,764 10 Trading account 1,883 1,949 1,860 1,767 1,707 1,824 1,833 1,669 1,790 11 Investment account 55,352 56,872 56,865 57,210 56,876 57,144 57,267 57,142 57,291 12 State and political subdivisions, by maturity . 21,078 21,057 21,138 21,100 21,125 21,078 21,195 21,279 21,397 13 One year or less 4,136 3,931 3,874 3,908 3,952 3,981 4,005 4,088 4,143 14 More than one year 16,942 17,126 17,264 17,193 17,173 17,098 17,189 17,192 17,254 15 Other bonds, corporate stocks, and securities 34,273 35,815 35,727 36,110 35,751 36,065 36,073 35,863 35,894 16 Other trading account assets 12,960 19,785 18,438 17,789 19,096 28,954 27,956 28,510 22,683 17 Federal funds sold2 90,604 93,589 92,790 100,424 90,526 99,395 92,193 98,952 87,741 18 To commercial banks in the United States 57,756 59,910 59,226 64,902 57,702 63,870 58,021 61,020 53,694 19 To nonbank brokers and dealers 29,504 28,340 28,887 29,062 26,787 29,652 28,142 30,431 27,308 20 To others3 3,343 5,339 4,677 6,461 6,036 5,873 6,030 7,500 6,739 21 Other loans and leases, gross 1,045,434 1,046,937 1,042,006 1,040,506 1,033,981 1,040,683 1,039,164 1,036,932 1,030,277 22 Commercial and industrial 278,536 278,919 277,124 278,844 278,876 282,046 281,116 282,809 281,014 23 Bankers acceptances and commercial paper .. 3,108 2,883 2,922 2,903 3,220 3,105 3,197 3,227 3,160 24 All other 275,428 276,036 274,203 275,942 275,656 278,941 277,919 279,582 277,854 25 U.S. addressees 273,932 274,484 272,515 274,286 274,006 277,270 276,024 277,589 275,835 26 Non-U.S. addressees 1,496 1,552 1,688 1,655 1,650 1,672 1,8% 1,993 2,018 27 Real estate loans 421,211 422,479 424,262 420,112 417,726 420,072 421,098 417,938 414,578 28 Revolving, home equity 44,004 43,906 43,812 43,815 43,826 43,835 43,733 43,709 43,634 29 All other 377,207 378,573 380,450 376,297 373,900 376,237 377,365 374,229 370,944 30 To individuals for personal expenditures 211,434 211,305 210,534 210,294 209,821 209,509 209,642 208,761 208,172 31 To financial institutions 42,873 44,174 42,088 41,182 39,155 38,811 38,606 37,740 37,346 32 Commercial banks in the United States 18,090 18,670 18,269 18,511 17,227 16,275 16,685 15,809 16,540 33 Banks in foreign countries 2,405 3,397 2,649 2,660 2,652 2,577 2,645 3,124 2,677 34 Nonbank financial institutions 22,379 22,107 21,171 20,012 19,276 19,958 19,275 18,807 18,128 35 For purchasing and carrying securities 19,157 18,289 18,317 18,174 17,634 19,009 19,127 19,670 19,482 36 To finance agricultural production 5,947 6,117 5,970 5,916 5,933 5,911 5,901 5,858 5,777 37 To states and political subdivisions 12,620 12,330 12,223 12,233 12,219 12,253 12,139 12,198 12,170 38 To foreign governments and official institutions 1,414 1,165 1,135 1,217 1,066 1,171 1,042 1,127 1,222 39 All other loans 26,183 25,688 23,773 25,954 24,998 25,319 23,906 24,210 23,865 40 Lease-financing receivables 26,059 26,470 26,578 26,580 26,554 26,584 26,587 26,622 26,653 4 4 1 2 LESS: U Lo n a e n a r a n n e d d l i e n a c s o e m r e e serve < 3 2 5 , , 0 5 8 7 2 0 35 1 , , 0 9 2 1 9 8 34 1 , , 8 9 9 1 3 9 34 1 , , 8 9 6 1 9 6 34 1 , , 9 8 0 9 7 8 34 1 , , 8 8 4 7 6 3 35 1 , , 1 8 4 6 0 8 35 1 , , 1 8 0 6 1 6 35 1 , , 0 8 6 8 0 4 43 Other loans and leases, net 1,007,782 1,009,990 1,005,193 1,003,720 997,176 1,003,964 1,002,156 999,965 993,333 44 Other assets 170,240 178,002 175,725 171,232 168,418 171,381 169,914 168,823 168,838 45 Total assets 1,769,368 1,788,781 1,773,391 1,798,286 1,748,464 1,783,685 1,767,234 1,776,692 1,762,650 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • May 1994 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1993 1994 AAccccoouunntt Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 LIABILITIES 46 Deposits 1,162,363 1,172,440 1,159,192 1,167,393 1,127,382 1,146,990 1,133,752 1,147,382 1,130,613 47 Demand deposits 322,219 317,193 303,384 320,512 289,692 302,683 289,944 303,115 292,725 48 Individuals, partnerships, and corporations 265,822 263,590 254,696 260,721 238,298 249,081 241,327 250,516 241,183 49 Other holders 56,397 53,602 48,687 59,791 51,394 53,602 48,617 52,599 51,542 50 States and political subdivisions 10,413 10,008 8,658 9,799 9,659 9,810 8,931 9,355 9,362 51 U.S. government 3,003 2,786 2,535 4,675 2,531 2,920 2,126 3,562 1,686 52 Depository institutions in the United States 22,935 22,531 21,194 27,874 22,631 22,643 20,290 21,830 23,966 53 Banks in foreign countries 5,716 5,991 5,705 5,748 5,202 5,783 4,681 5,600 5,764 54 Foreign governments and official institutions 860 881 605 7% 637 679 607 590 541 55 Certified and officers' checks 13,471 11,405 9,990 10,898 10,735 11,766 11,982 11,661 10,224 56 Transaction balances other than demand deposits4 130,366 137,169 126,942 126,536 121,240 124,127 123,307 123,215 122,070 57 Nontransaction balances 709,778 718,079 728,867 720,344 716,449 720,180 720,501 721,051 715,818 58 Individuals, partnerships, and corporations 688,977 698,360 706,658 697,946 693,898 697,636 697,627 698,010 692,986 59 Other holders 20,801 19,719 22,209 22,397 22,551 22,544 22,874 23,041 22,832 60 States and political subdivisions 16,925 17,305 18,223 18,331 18,496 18,457 18,806 18,894 18,731 61 U.S. government 1,847 464 2,024 2,063 2,056 2,090 2,114 2,120 2,114 62 Depository institutions in the United States 1,713 1,623 1,653 1,695 1,691 1,689 1,647 1,727 1,691 63 Foreign governments, official institutions, and banks .... 316 326 309 309 308 308 307 301 296 64 Liabilities for borrowed money5 330,514 327,215 323,063 336,944 328,586 336,522 337,061 330,637 334,111 65 Borrowings from Federal Reserve Banks 0 1,220 0 0 0 0 0 0 0 66 Treasury tax and loan notes 29,559 15,996 19,531 23,302 28,843 30,901 28,796 24,591 22,927 67 Other liabilities for borrowed money6 300,955 309,999 303,532 313,642 299,743 305,621 330088,,226655 330066,,004477 331111,,118855 68 Other liabilities (including subordinated notes and debentures) 116,428 126,762 127,931 131,190 129,005 136,164 133,658 134,722 134,768 69 Total liabilities 1,609,305 1,626,418 1,610,185 1,635,527 1,584,972 1,619,676 1,604,471 1,612,740 1,599,492 70 Residual (total assets less total liabilities)7 160,063 162,363 163,205 162,760 163,491 164,008 162,763 163,952 163,158 MEMO 71 Total loans and leases, gross, adjusted, plus securities8 .. 1,433,254 1,449,298 1,442,520 1,440,539 1,427,575 1,451,850 1,447,169 1,452,790 1,433,163 72 Time deposits in amounts of $100,000 or more 93,886 95,134 98,967 98,897 97,581 97,652 97,259 96,805 96,302 73 Loans sold outright to affiliates9 796 793 785 774 770 768 768 762 757 74 Commercial and industrial 392 389 389 384 383 383 382 382 377 75 Other 404 404 396 390 387 385 386 381 380 76 Foreign branch credit extended to U.S. residents 21,885 21,889 21,936 21,979 21,721 21,325 21,141 20,710 20,551 77 Net owed to related institutions abroad -5,279 -11,197 -3,384 5,413 5,361 2,282 -68 -1,170 6,163 1. Includes certificates of participation, issued or guaranteed by agencies of the 9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank U.S. government, in pools of residential mortgages. affiliates of the bank, the bank's holding company (if not a bank), and noncon- 2. Includes securities purchased under agreements to resell. solidated nonbank subsidiaries of the holding company. 3. Includes allocated transfer risk reserve. 10. Credit extended by foreign branches of domestically chartered weekly 4. Includes negotiable order of withdrawal accounts (NOWs), automatic trans- reporting banks to nonbank U.S. residents. Consists mainly of commercial and fer service (ATS), and telephone and preauthorized transfers of savings deposits. industrial loans, but includes an unknown amount of credit extended to other than 5. Includes borrowings only from other than directly related institutions. nonfinancial businesses. 6. Includes federal funds purchased and securities sold under agreements to NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large repurchase. Weekly Reporting Commercial Banks in New York City, can be obtained from the 7. This balancing item is not intended as a measure of equity capital for use in Board's H.4.2 (504) weekly statistical release. For ordering address, see inside capital-adequacy analysis. front cover. 8. Excludes loans to and federal funds transactions with commercial banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A23 1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1993 1994 AAccccoouunntt Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb.16 Feb. 23 ASSETS 1 Cash and balances due from depository institutions 17,544 17,203 16,728 16,920 16,038 16,959 16,334 1166,,669944 1155,,444466 2 U.S. Treasury and government agency securities 38,062 36,390 36,338 36,749 36,629 36,558 35,720 3366,,442277 3366,,111166 3 Other securities 7,916 8,805 8,629 8,346 8,535 8,496 8,566 8,741 8,890 4 Federal funds sold 31,712 23,862 23,467 29,344 25,529 31,106 29,627 27,315 29,092 5 To commercial banks in the United States ... 8,717 6,296 2,513 6,753 5,184 7,377 5,922 6,476 9,688 6 To others2 22,994 17,566 20,954 22,591 20,345 23,729 23,705 20,839 19,403 7 Other loans and leases, gross 160,008 157,761 157,339 155,978 154,374 154,089 156,013 155,529 154,955 8 Commercial and industrial 95,925r 96,274 96,267 96,044 95,331 94,374 94,498 94,684 94,386 9 Bankers acceptances and commercial paper 3,134 3,353 3,282 3,304 3,154 3,112 3,142 33,,442277 22,,997777 10 All other 92,791r 92,920 92,985 92,739 92,177 91,262 91,356 91,257 91,409 11 U.S. addressees 89,610r 89,702 89,758 89,489 88,844 87,958 88,036 87,966 88,078 12 Non-U.S. addressees 3,182 3,219 3,227 3,250 3,334 3,304 3,321 3,291 3,332 13 Loans secured by real estate 29,686 29,328 29,331 29,317 29,466 29,353 29,394 29,409 29,207 14 To financial institutions 23,124r 22,821 22,369 22,054 21,124 21,282 22,359 20,981 20,928 15 Commercial banks in the United States.. 5,363 5,436 5,575 5,483 5,099 5,142 4,632 4,874 4,658 16 Banks in foreign countries 1,644 1,539 1,538 1,510 1,451 1,361 1,456 1,619 1,557 17 Nonbank financial institutions 16,117r 15,847 15,256 15,061 14,573 14,778 16,270 14,489 14,714 18 For purchasing and carrying securities 6,863r 5,163 5,105 4,157 4,030 4,452 5,177 6,089 5,950 19 To foreign governments and official institutions 468 529 525 585 663344 779977 889955 559944 661199 20 All other 3,943 3,646 3,742 3,820 3,790 3,832 3,690 3,771 3,864 21 Other assets (claims on nonrelated parties) .. 30,093 33,337 33,400 31,827 32,539 33,133 34,900 34,121 32,318 22 Total assets3 314,422 304,398 305,527 305,496 297,933 304,913 301,563 298,285 295,378 LIABILITIES 23 Deposits or credit balances owed to other than directly-related institutions 99,470 97,946 97,429 96,047 98,113 92,671 94,964 9944,,228844 9933,,339999 24 Demand deposits4 5,125 4,567 4,498 4,644 4,889 5,183 4,802 4,760 4,900 25 Individuals, partnerships, and corporations 3,963 3,722 3,515 3,770 3,636 3,762 3,631 33,,668800 33,,881133 26 Other 1,162 846 983 874 1,253 1,421 1,171 1,080 1,087 27 Nontransaction accounts 94,345 93,379 92,931 91,403 93,224 87,488 90,162 89,524 88,499 28 Individuals, partnerships, and corporations 65,181 63,928 64,235 63,339 65,748 61,925 62,623 6611,,880088 6611,,666622 29 Other 29,164 29,450 28,696 28,064 27,476 25,563 27,539 27,716 26,836 30 Borrowings from other than directlyrelated institutions 78,684 72,808 75,186 78,008 70,659 82,102 73,471 6677,,445500 6677,,778811 31 Federal funds purchased 43,179 37,537 40,556 42,848 38,339 47,574 39,235 34,260 33,641 3322 From commercial banks in the United States 14,121 10,152 10,889 10,415 10,002 15,878 9,708 99,,776666 77,,443300 33 From others 29,058 27,385 29,667 32,433 28,337 31,696 29,527 24,494 26,211 34 Other liabilities for borrowed money 78,684r 72,808 75,186 78,008 70,659 82,102 73,471 67,450 67,781 35 To commercial banks in the United States 6,003 6,437 6,172 6,346 5,816 6,015 6,227 55,,551144 55,,663399 36 To others 29,502 28,834 28,458 28,814 26,504 28,513 28,009 27,676 28,501 37 Other liabilities to nonrelated parties 27,470 29,864 30,191 28,671 30,239 30,509 30,251 30,239 29,759 38 Total liabilities6 314,422 304,398 305,527 305,496 297,933 304,913 301,563 298,285 295,378 39 T M o E t M al O l oans (gross) and securities, adjusted' 7 .. 223,618 215,087 217,684 218,180 214,784 217,730 219,371 216,662 221144,,770088 40 Net owed to related institutions abroad 79,711 76,740 73,093 76,439 74,632 75,059 82,473 86,855 85,879 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

A24 Domestic NonfinancialS tatistics • May 1994 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period Year ending December 1993 1993 IItteemm 1989 1990 1991 1992 1993 Aug. Sept. Oct. Nov. Dec. Jan. Commercial paper (seasonally adjusted unless noted otherwise) 1 AD issuers 525,831 562,656 531,724 549,520' 559,259 545,423r 541,676r 550,947' 550,506 559,259 Financial companies' Dealer-placed paper 2 Total 183,622 214,706 213,823 222277,,555500'' 220,004 216,259r 221155,,220099rr 223,372r 218,428 220,004 3 Bank-related (not seasonally adjusted)3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 210,930 200,036 183,379 172,813 181,658 172,093 169,932r 171,461' 177,622 181,658 5 Bank-related (not seasonally adjusted)3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies5 131,279 147,914 134,522 149,157r 157,597 157,071r 156,535r 156,114' 154,456 157,597 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 62,972 54,771 43,770 38,194 32,348 32,572 33,041 33,069 31,997 32,348 31,701 By holder 8 Accepting banks 9,433 9,017 11,017 10,555 12,325 12,416 12,522 12,332 12,475' 12,325 11,275 9 Own bills 8,510 7,930 9,347 9,097 10,611 10,709 10,679 10,886 10,853' 10,611 9,818 10 Bills bought from other banks 924 1,087 1,670 1,458 1,714 1,707 1,843 1,446 1,622 1,714 1,457 Federal Reserve Banks 11 Foreign correspondents 1,066 918 1,739 1,276 725 635 637 582 650 725 869 12 Others 52,473 44,836 31,014 26,364 19,298 19,521 19,882 20,155 18,872' 19,298 19,557 By basis 13 Imports into United States 15,651 13,095 12,843 12,209 10,217 10,422 10,773 10,810 10,368 10,217 10,588 14 Exports from United States 13,683 12,703 10,351 8,0% 7,293 7,534 7,460 7,101 7,054 7,293 7,119 15 All other 33,638 28,973 20,577 17,890 14,838 14,616 14,808 15,158 14,575 14,838 13,994 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 ail 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Date of change Av r e a r te a ge Av r e a r te a ge Period Av r e a r te a ge 1991— Jan. 1 10.00 1991 8.46 1992—Jan. ... 6.50 1993— Jan. .. 6.00 2 9.50 1992 6.25 Feb. .. 6.50 Feb. .. 6.00 Feb. 4 9.00 1993 6.00 Mar. .. 6.50 Mar. .. 6.00 May 1 8.50 Apr. .. 6.50 Apr. .. 6.00 Sept. 13 8.00 1991— Jan. 9.52 May ... 6.50 May ... 6.00 Nov. 6 7.50 Feb. 9.05 June .. 6.50 June .. 6.00 Dec. 23 6.50 Mar. 9.00 July ... 6.02 July ... 6.00 Apr. 9.00 Aug. .. 6.00 Aug. .. 6.00 1992— July 2 6.00 May 8.50 Sept. .. 6.00 Sept. .. 6.00 June 8.50 Oct. ... 6.00 Oct. ... 6.00 1994— Mar. 24 6.25 July 8.50 Nov. .. 6.00 Nov. .. 6.00 Aug. 8.50 Dec. .. 6.00 Dec. .. 6.00 Sept. 8.20 Oct. 8.00 1994— Jan. ... 6.00 Nov. 7.58 Feb. .. 6.00 Dec. 7.21 Mar. 6.06 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 • May 1994 1.35 INTEREST RATES Money and Capital Markets Averages, percent per year; figures are averages of business day data unless otherwise noted 1993 1994 1994, week ending IItteemm 11999911 11999922 11999933 Nov. Dec. Jan. Feb. Jan. 28 Feb. 4 Feb. 11 Feb. 18 Feb. 25 MONEY MARKET INSTRUMENTS 1 Federal funds1'2'3 5.69 3.52 3.02 3.02 2.96 3.05 3.25 2.97 3.17 3.20 3.25 3.25 2 Discount window borrowing ' 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 paper3-5,6 3 1-month 5.89 3.71 3.17 3.15 3.35 3.14 3.39 3.11 3.14 3.41 3.46 3.47 4 3-month 5.87 3.75 3.22 3.40 3.36 3.19 3.49 3.15 3.20 3.50 3.54 3.63 5 6-month 5.85 3.80 3.30 3.43 3.40 3.30 3.62 3.26 3.32 3.63 3.66 3.79 Finance paper, directly placedi,s'7 6 1-month 5.73 3.62 3.12 3.08 3.21 3.07 3.30 3.03 3.08 3.34 3.36 3.37 7 3-month 5.71 3.65 3.16 3.25 3.19 3.11 3.40 3.07 3.13 3.42 3.45 3.51 8 6-month 5.60 3.63 3.15 3.19 3.18 3.15 3.39 3.13 3.16 3.39 3.44 3.50 Bankers acceptances3'5'8 9 3-month 5.70 3.62 3.13 3.29 3.23 3.10 3.40 3.07 3.19 3.40 3.43 3.53 10 6-month 5.67 3.67 3.21 3.32 3.30 3.21 3.56 3.17 3.32 3.54 3.58 3.73 Certificates of deposit, secondary marker9 11 1-month 5.82 3.64 3.11 3.11 3.26 3.08 3.31 3.06 3.10 3.32 3.35 3.41 12 3-month 5.83 3.68 3.17 3.35 3.26 3.15 3.43 3.12 3.20 3.43 3.47 3.57 13 6-month 5.91 3.76 3.28 3.39 3.35 3.29 3.62 3.26 3.36 3.60 3.64 3.81 14 Eurodollar deposits, 3-month3'10 5.86 3.70 3.18 3.36 3.26 3.15 3.43 3.13 3.20 3.43 3.44 3.55 U.S. Treasury bills Secondary market • 15 3-month 5.38 3.43 3.00 3.10 3.06 2.98 3.25 2.93 3.08 3.25 3.27 3.35 16 6-month 5.44 3.54 3.12 3.26 3.23 3.15 3.43 3.13 3.24 3.40 3.43 3.58 17 1-year 5.52 3.71 3.29 3.42 3.45 3.39 3.69 3.35 3.49 3.69 3.70 3.82 Auction average • • 18 3-month 5.42 3.45 3.02 3.12 3.08 3.02 3.21 2.96 2.99 3.24 3.28 3.33 19 6-month 5.49 3.57 3.14 3.27 3.25 3.19 3.38 3.14 3.16 3.40 3.43 3.53 20 1-year 5.54 3.75 3.33 3.43 3.47 3.52 3.59 n.a. n.a. 3.59 n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 5.86 3.89 3.43 3.58 3.61 3.54 3.87 3.51 3.66 3.85 3.88 4.01 22 2-year 6.49 4.77 4.05 4.16 4.21 4.14 4.47 4.10 4.24 4.43 4.48 4.67 23 3-year 6.82 5.30 4.44 4.50 4.54 4.48 4.83 4.44 4.57 4.81 4.85 5.03 24 5-year 7.37 6.19 5.14 5.06 5.15 5.09 5.40 5.05 5.14 5.36 5.40 5.60 25 7-year 7.68 6.63 5.54 5.45 5.48 5.43 5.72 5.38 5.46 5.67 5.73 5.94 26 10-year 7.86 7.01 5.87 5.72 5.77 5.75 5.97 5.74 5.80 5.94 5.95 6.15 27 20-year n.a. n.a. 6.29 6.38 6.40 6.39 6.57 6.35 6.38 6.52 6.58 6.76 28 30-year 8.14 7.67 6.59 6.21 6.25 6.29 6.49 6.29 6.30 6.42 6.51 6.68 Composite 29 More than 10 years (long-term) 8.16 7.52 6.45 6.25 6.27 6.24 6.44 6.21 6.23 6.39 6.45 6.63 STATE AND LOCAL NOTES AND BONDS Moody's series13 30 6.56 6.09 5.38 5.10 5.18 5.14 n.a. 5.10 5.04 5.05 5.06 5.12 31 Baa 6.99 6.48 5.82 5.61 5.69 5.60 n.a. 5.53 5.20 5.25 5.27 5.37 32 Bond Buyer series 6.92 6.44 5.60 5.47 5.35 5.31 5.40 5.28 5.25 5.36 5.42 5.58 CORPORATE BONDS 33 Seasoned issues, all industries15 9.23 8.55 7.54 7.25 7.26 7.25 7.39 7.23 7.24 7.35 7.39 7.54 Rating group 34 Aaa 8.77 8.14 7.22 6.93 6.93 6.92 7.08 6.91 6.93 7.03 7.06 7.23 35 Aa 9.05 8.46 7.40 7.12 7.12 7.12 7.29 7.11 7.13 7.24 7.30 7.45 36 A 9.30 8.62 7.58 7.29 7.31 7.30 7.44 7.29 7.29 7.39 7.44 7.60 37 Baa 9.80 8.98 7.93 7.66 7.69 7.65 7.76 7.62 7.61 7.72 7.76 7.92 38 A-rated, recently offered utility bonds16 9.32 8.52 7.46 7.25 7.28 7.24 7.45 7.16 7.35 7.40 7.54 7.62 MEMO Dividend-price ratio17 39 Preferred stocks 8.17 7.46 6.89 6.87 7.01 6.97 7.00 6.97 6.% 6.93 7.03 7.07 40 Common stocks 3.24 2.99 2.78 2.72 2.72 2.69 2.70 2.69 2.63 2.71 2.71 2.72 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 1994 IInnddiiccaattoorr 11999911 11999922 11999933 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 206.35 229.00 249.71 247.16 247.85 251.93 254.86 257.53 255.93 257.73 262.11 261.97 2 Industrial 258.16 284.26 300.10 298.78 295.34 298.83 300.92 306.61 310.84 313.22 320.92 322.41 3 Transportation 173.97 201.02 242.68 234.30 238.30 250.82 247.74 254.04 262.96 268.11 278.29 276.67 4 Utility 92.64 99.48 114.55 113.27 116.27 118.72 122.32 120.49 115.08 114.97 112.67 116.22 5 Finance 150.84 179.29 216.55 209.75 218.89 224.96 229.35 228.18 214.08 216.00 218.71 217.12 6 Standard & Poor's Corporation (1941-43 = 10)' 376.20 415.75 451.63 448.06 447.29 454.13 459.24 463.90 462.89 465.95 472.99 471.58 7 American Stock Exchange (Aug. 31, 1973 = 50? 360.32 391.28 438.77 436.13 434.99 444.75 454.91 472.73 472.41 465.95 481.14 476.25 Volume of trading (thousands of shares) 8 New York Stock Exchange 179,411 202,558 263,374 250,230 247,574 247,324 261,770 280,503 277,886 259,457 313,223 307,269 9 American Stock Exchange 12,486 14,171 n.a. 17,753 17,744 19,352 18,889 21,279 18,436 17,461 19,211 19,630 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 36,660 43,990 60,310 49,550 49,080 52,760 53,700 56,690 59,760 60,310 61,250 62,020 Free credit balances at brokers4 11 Margin accounts 8,290 8,970 12,360 9,820 9,585 9,480 10,030 10,270 10,940 12,360 12,125 12,890 12 Cash accounts 19,255 22,510 27,715 22,625 21,475 21,915 23,170 22,450 23,560 27,715 26,020 25,665 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 Financial Statistics • May 1994 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1993 1994 11999911 11999922 11999933 Sept. Oct. Nov. Dec. Jan. Feb. U.S. budget1 1 Receipts, total 1,054,264 1,090,453 l,I53,209r 127,485r 78,668 83,107 125,416 122,968 72,940 2 On-budget 760,380 788,027 841,275r 98,625r 55,864 58,700 99,722 94,398 46,945 3 Off-budget 293,885 302,426 311,934 28,860 22,804 24,407 25,694 28,570 25,995 4 Outlays, total 1,323,785 1,380,794 l,407,892r 118,921r 124,090 121,488 133,667 107,355 114,573 5 On-budget 1,082,098 1,128,455 1,141,880* 90,790* 100,568 96,724 121,985 83,164 88,655 6 Off-budget 241,687 252,339 266,012 28,130 23,523 24,764 11,682 24,191 25,918 7 Surplus or deficit (-), total -269,521 -290,340 -254,684 8,565 -45,422 -38,381 -8,252 15,613 -41,633 8 On-budget -321,719 -340,428 -300,606 7,835 -44,704 -38,024 -22,263 11,234 -41,710 9 Off-budget 52,198 50,087 45,922 730 -719 -357 14,012 4,379 77 Source of financing (total) 10 Borrowing from the public 276,802 310,918 248,619 -9,346 4,255 71,028 13,995 -6,933 31,633 11 Operating cash (decrease, or increase (-)) ... -1,329 -17,305 6,283 -11,713 33,646 -13,450 -17,413 -8,089 19,666 12 Other -5,952 -3,273 -218 12,494 7,521 -19,197 11,670 -591 -9,666 MEMO 13 Treasury operating balance (level, end of period) 41,484 58,789 52,506 52,506 18,860 32,310 49,723 57,812 38,146 14 Federal Reserve Banks 7,928 24,586 17,289 17,289 6,032 6,334 14,809 21,541 4,886 15 Tax and loan accounts 33,556 34,203 35,217 35,217 12,828 25,977 34,914 36,271 33,259 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 Source or type 1992 1993 HI HI H2 Jan. Feb. RECEIPTS 1 All sources 1,090,453 l,153,209r 560,318 540,484r 593,212r 582,044r 125,416 122,968 72,940 2 Individual income taxes, net 475,964 509,680 236,576 246,938 255,556 262,073 54.183 74,167 28,107 4 5 6 3 R P N W r e o e i f t n s u h w i h n d i e d e t l s n h d t h i e al l d E lection Campaign Fund . 4 1 8 0 4 1 8 9 , , , 7 3 3 6 5 4 3 0 2 2 0 4 1 7 3 5 5 0 4 , , , 5 4 7 4 2 7 2 6 7 2 8 1 1 7 1 9 3 0 8 , , , 3 9 8 0 9 6 2 8 5 8 0 2 3 1 7 9 5 , , , 9 2 5 4 8 8 1 2 8 4 0 2 1 6 0 1 7 9 3 , , , 4 9 4 6 0 2 8 8 5 8 8 r r 2 4 2 1 8 8 , , , 1 7 4 1 6 2 4 5 9 2 5 3 1 , . 5 1 5 0 8 0 1 4 2 0 3 3 7 6 , , 7 4 8 9 7 3 8 0 8 1 3 1 7 0 1 , , , 3 3 1 8 3 5 1 8 5 1 0 Corporation income taxes 7 Gross receipts 117,951 131,548 61,682 58,022 69,044 68,266 28,%3 4,761 2,888 8 Refunds 17,680 14,027 9,403 7,219 7,198 6,514 725 844 1,294 9 Social insurance taxes and contributions, net 413,689 428,300 224,569 192,599 227,177 206,174 33,954 36,983 35,989 10 Employment taxes and contributions 385,491 396,939 208,110 180,758 208,776 192,749 33,273 35,831 32,957 11 Self-employment taxes and contributions 24,421 20,604 20,434 3,988 16,270 4,335 0 -1,589 1,577 12 Unemployment insurance 23,410 26,556 14,070 9,397 16,074 11,010 259 794 2,664 13 Other net receipts4 4,788 4,805 2,389 2,445 2,326 2,417 423 358 367 14 Excise taxes 45,569 48,057 22,389 23,456 23,398 25,994 4,695 4,011 3,249 15 Customs deposits 17,359 18,802 8,146 9,497 8,860 10,215 1,584 1,526 1,419 16 Estate and gift taxes 11,143 12,577 5,701 5,733 6,494 6,617 1,179 1,105 1,093 17 Miscellaneous receipts5 26,459 18,273r 10,658 11,458r 9,879* 9,216r 1,582 1,260 1,491 OUTLAYS 18 All types l,380,794r l,407,892r 704,266 723,527r 673,340r 728,1W 133,667 107,355 114,573 19 National defense 298,350 290,590 147,065 155,231 140,535 146,177 26,809 18,861 21,9% 20 International affairs 16,107 17,175 8,540 9,916 6,565 10,534 548 1,103 948 21 General science, space, and technology . 16,409 17,055 7,951 8,521 7,9% 8,904 1,496 1,299 1,269 22 Energy 4,499 4,445 1,442 3,109 2,462 1,641 385 465 159 23 Natural resources and environment 20,025 20,088 8,594 11,467 8,588 11,077 1,567 1,447 1,449 24 Agriculture 15,205 20,257 7,526 8,852 11,824 7,335 3,074 1,122 1,817 25 Commerce and housing credit 10,118 -23,532 15,615 -7,697 -15,112 -1,724 1,126 -1,124 -4,608 26 Transportation 33,333 35,238 15,651 18,425 16,077 20,375 3,714 2,503 2,784 27 Community and regional development .. 6,838 10,395 3,903 4,464 4,935 5,606 772 906 445 28 Education, training, employment, and social services 45,250 48,857r 23,767 21,241 24,042r 25,515 4,455 2,693 2,666 29 Health 89,497 99,249 44,164 47,232 49,882 52,631 8,906 7,665 8,229 30 Social security and Medicare 406,569 435,137 205,500 232,109 195,933 223,735 39,720 36,009 37,222 31 Income security 196,891 207,788r 104,537 98,382 108,342r 103,163 19,771 16,1% 22,466 32 Veterans benefits and services 34,133 35,715 15,597 18,561 16,385 19,848 4,469 2,151 3,135 33 Administration of justice 14,426 15,001r 7,435 7,238 7,481r 7,448 1,244 1,210 1,105 34 General government 12,945 13,039 5,050 8,223 5,205 6,565 1,708 669 782 3 3 6 5 N Un et d i i s n t t r e i r b e u s t t e 6 d offsetting receipts 1 ' - 1 3 9 9 9 , , 2 4 8 3 0 9 - 1 3 9 7 8 , , 3 8 8 7 6 0 - 1 1 0 8 0 , , 2 1 2 6 9 1 -2 9 0 8 , , 6 6 2 9 8 2 -1 9 7 9 , , 0 6 3 3 5 5 -2 9 0 9 , , 4 % 07 3 - 1 2 6 ,7 ,6 3 3 7 8 - 1 2 7 , , 9 0 1 9 4 5 - 1 2 5 , , 8 5 1 2 5 4 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 DomesticN onfinancialS tatistics • May 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. 2 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 Nonmarketable1 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 holder4 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 76.2 75.2 20 Insurance companies 142.0 168.7 197.5 205.0 208.1 210.0 21 Other companies 108.9 150.8 192.5 n. a. 199.3 206.1 215.6 n.a. 22 State and local treasuries 490.4 520.3 534.8 541.0 553.9 558.0 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 international5 458.4 491.8 549.7 565.5 568.2 592.3 26 Other miscellaneous investors6 637.7 651.3 702.4 698.8 717.0 720.0 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 1994 week 1994, week ending ending Item Nov. Dec." Jan. Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 47,256 42,139 51,655 31,220 43,782 56,310 50,809 49,149 5577,,335544 6655,,117744 4444,,220022 5500,,229944 Coupon securities, by maturity 2 Less than 3.5 years 52,959 37,291 52,519 22,716 33,911 56,702 49,813 58,268 5599,,008844 9955,,668888 5500,,770088 6666,,888899 3 3.5 to 7.5 years 45,242 29,891 41,480 16,731 23,403 47,976 42,262 42,305 46,051 55,514 38,295 52,094 4 7.5 to 15 years 26,974r 16,803 26,382 9,275 15,890 28,728 27,118 24,580 34,738 44,273 29,713 31,114 5 15 years or more 17,995 13,247 18,752 7,553 13,235 23,445 15,676 17,682 23,359 21,878 24,767 21,965 Federal agency securities Debt, by maturity 6 Less than 3.5 years 9,971 9,999 11,346 10,248 11,056 11,091 10,457 12,454 11,695 12,040 99,,221133 1111,,224488 7 3.5 to 7.5 years 718 531 715 303 326 1,359 536 587 540 575 845 781 8 7.5 years or more 396 466 558 212 447 530 642 617 480 607 581 414 Mortgage-backed 9 Pass-throughs 22,489 19,332 25,595 12,334" 22,071 33,727 26,544 22,339 19,409 2233,,552299 2277,,221122 1188,,999911 10 All others7! 3,064 2,771 3,657 1,523 2,878 4,423 2,730 4,493 3,308 3,414 3,669 4,361 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 120,636 84,926 117,681 50,896 77,673 130,373 114,528 120,495 137,100 118800,,220077 111188,,551177 113399,,774455 Federal agency securities 12 Debt 1,623 1,308 1,763 915 1,939 1,675 1,477 2,054 1,723 1,711 11,,228855 11,,775533 13 Mortgage-backed 10,965 9,057 12,881 6,459" 11,032 16,293 12,281 13,400 9,178 9,532 12,938 10,895 Customers 14 U.S. Treasury securities 69,791r 54,446 73,107 36,599 52,549 82,787 71,150 71,490 83,486 102,320 6699,,116688 8822,,661111 Federal agency securities 15 Debt 9,461 9,688 10,856 9,848 9,890 11,304 10,158 11,604 10,992 11,511 99,,335533 1100,,669911 16 Mortgage-backed 14,589 13,045 16,370 7,399" 13,917 21,857 16,992 13,432 13,539 17,411 17,943 12,457 FUTURES AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 2,746 1,740 2,250 792 2,414 2,611 1,348 1,327 44,,552233 33,,000077 11,,882277 22,,335577 Coupon securities, by maturity 18 Less than 3.5 years 2,276 1,756 2,229 1,200 1,626 2,800 1,899 2,022 22,,777744 33,,007711 22,,330066 33,,880066 19 3.5 to 7.5 years 2,158 1,809 1,905 858 1,373 2,184 1,465 2,540 1,647 2,540 2,217 3,593 20 7.5 to 15 years 4,192 2,930 3,238 1,540 2,590 3,509 3,390 2,984 3,604 5,151 3,562 6,043 21 15 years or more 12,704 8,686 11,933 4,355" 9,460 13,298 10,953 11,814 13,964 14,807 11,021 14,876 Federal agency securities Debt, by maturity 22 Less than 3.5 years 77 29 123 49 139 84 105 148 115599 86 224477 441188 23 3.5 to 7.5 years 93 49 127 66 33 98 93 77 411 142 185 236 24 7.5 years or more 29 83 70 9 269 9 30 73 32 11 287 439 Mortgage-backed 25 Pass-throughs 26,164 17,807 26,040 7,002" 18,660 35,613 25,260 20,949 27,249 36,883 2255,,116633 1133,,119900 26 Others3 1,919" 1,746 1,885 1,893 1,573 1,454 1,457 2,365 2,826 3,281 1,871 1,718 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 2,182r 1,662 2,216 1,258 1,900 3,004 1,991 1,751 22,,337700 33,,334433 22,,557788 44,,667799 28 3.5 to 7.5 years 724r 360 808 561" 417 1,338 767 460 961 743 848 1,116 29 7.5 to 15 years 870" 768 1,262 712" 710 1,257 2,097 821 1,168 1,145 1,633 2,450 30 15 years or more 2,408r 1,372 2,086 715" 2,642 2,265 1,799 2,158 1,589 2,370 2,522 3,421 Federal agency, mortgagebacked securities 31 Pass-throughs 94 f 548 954 199 923 1,510 735 761 742 1,212 667744 882211 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 • May 1994 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1993, 1993 1994 week 1994, week ending ending Item Nov. Dec. Jan. Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Positions2 NET IMMEDIATE POSITIONS3 By type of security U.S. Treasury securities 1 Bills 16,062 15,015 6,758 9,657 8,922 8,475 10,200 55,,112277 -343 7,416 5,718 Coupon securities, by maturity 2 Less than 3.5 years -3,830 -7,939 -4,873 -4,592 -7,904 -3,562 -7,940 -100 -6,068 -6,720 -8,940 3 3.5 to 7.5 years -24,582 -18,634 -17,706 -16,051 -14,691 -16,990 -17,198 -18,475 -21,360 -23,617 -22,428 4 7.5 to 15 years -890 -1,907 -2,197 -1,895 -3,227 -2,241 -2,803 108 -3,481 1,617 -3,004 5 15 years or more 3,050 777 173 3,421 -560 1,090 -817 -2,748 5,100 3,133 6,983 Federal agency securities Debt, by maturity 6 Less than 3.5 years 9,381 8,277 10,274 6,9% 7,348 7,648 9,206 12,135 15,768 12,975 11,561 7 3.5 to 7.5 years 3,189 3,368 2,877 3,197 2,763 3,247 2,684 2,600 3,129 2,857 2,958 8 7.5 years or more 4,089 4,550 4,975 4,738 4,657 5,365 5,683 44,,441155 44,,553399 44,,118855 3,551 Mortgage-backed 9 Pass-throughs 44,808* 39,223 48,652 39,905 36,295 51,597 51,938 51,163 48,771 54,981 52,310 10 All others 34,467r 29,892 31,249 28,108 33,083 32,235 31,241 30,616 28,932 28,439 27,052 Other money market instruments 11 Certificates of deposit 3,428 3,490 3,675 3,557 4,167 3,028 4,216 3,274 3,894 4,161 4,250 12 Commercial paper 7,595 7,584 6,263 6,758 5,667 4,591 6,612 5,959 9,135 8,248 7,683 13 Bankers acceptances 1,432 1,186 984 1,132 944 918 1,241 837 964 817 946 FUTURES AND FORWARD POSITIONS5 By type of deliverable security U.S. Treasury securities 14 BUls 4,475 205 -2,769 2,149 2,409 -3,743 -3,429 -3,939 --44,,002211 -2,527 --22,,447799 Coupon securities, by maturity 15 Less than 3.5 years -952 -1,448 -1,037 -802 328 -1,709 -2,041 -1,194 166 -2,104 -1,270 16 3.5 to 7.5 years 1,646 556 1,618 -446 2,298 1,248 1,933 2,583 -335 942 2,879 17 7.5 to 15 years 10,952 8,422 5,843 7,855 9,690 5,906 6,081 4,466 3,504 7,821 7,695 18 15 years or more -1,670 -3,984 -3,580 -5,745 -607 -5,716 -4,584 -1,605 --44,,992244 -6,042 --66,,441111 Federal agency securities Debt, by maturity 19 Less than 3.5 years 15 34 247 41 358 291 419 70 80 2 16 20 3.5 to 7.5 years 68 90 303 354 309 245 541 240 134 71 169 21 7.5 years or more -8 48 -93 80 6 29 -549 78 38 6 621 Mortgage-backed 22 Pass-throughs -21,894r -10,903 -27,318 -8,%5 -10,830 -29,710 -29,595 -30,468 -32,860 -40,939 -38,723 23 All others 2,508r 1,636 2,063 3,526 -198 770 354 2,160 8,394 8,614 8,795 24 Certificates of deposit -226,180 -227,414 -225,011 -228,009 -215,709 -216,323 -205,719 -254,569 -232,103 -258,194 -243,572 Financing6 Reverse repurchase agreements 25 Overnight and continuing 228,498r 226,529 250,861 214,327 233,887 253,989 255,207 243,717 267,375 265,299 280,878 26 Term 407,032r 392,777* 401,867 389,968* 364,009 406,009 407,166 424,640 394,628 449,254 3%,888 Repurchase agreements 27 Overnight and continuing 435,112r 441,518 446611,,221155 416,722 438,703 449,875 478,024 454,918 484,886 455,818 503,188 28 Term 378,740* 368,885 372,657 382,284* 313,183 372,708 378,689 413,175 366,891 423,858 374,698 Securities borrowed 29 Overnight and continuing 135,983r 139,232* 142,400 133,929 139,167 140,740 143,646 144,950 142,645 143,019 144,816 30 Term 47,183r 47,034 50,216 46,039 46,990 49,881 49,870 54,346 48,611 47,102 45,470 Securities loaned 31 Overnight and continuing 6,075 5,564* 6,217 6,623 5,694 5,904 6,608 6,336 6,467 6,143 7,131 32 Term 2,556 2,386 1,535 1,701 1,428 1,349 1,392 1,731 1,826 1,527 1,882 Collateralized loans 33 Overnight and continuing 1133,,440099** 16,326* 16,169 18,403 20,109 19,519 14,661 11,939 15,574 16,176 17,752 MEMO; Matched book7 Reverse repurchase agreements 34 Overnight and continuing 156,898r 153,280 175,650 141,053 163,828 175,255 176,176 173,928 189,701 174,113 188,274 35 Term 361,656r 345,268 361,748 339,550 324,300 365,598 368,183 385,707 351,253 395,473 347,635 Repurchase agreements 36 Overnight and continuing 222200,,112255** 221100,,990011 223388,,886677 195,575 228,655 236,862 243,076 239,476 245,142 232,060 240,016 37 Term 285,299* 275,439 281,109 282,924 234,808 285,927 284,351 306,251 280,929 331,767 283,985 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 FRFAorSwEarRd positions reflect agreements made in the over-the-counter market that for term financing of collateralized loans are no longer available because of insufficient specify delayed delivery. All futures positions are included regardless of time to activity. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1993 AAggeennccyy 11998899 11999900 11999911 11999922 Aug. Sept. Oct. Nov. Dec. 1 Federal and federally sponsored agencies 411,805 434,668 442,772 483,970 544,642 0 0 0 0 2 Federal agencies 35,664 42,159 41,035 41,829 44,816 43,753 43,7% 44,055 45,194 3 Defense Department1 7 7 7 7 7 7 7 7 7 4 Export-Import Bank2,3 10,985 11,376 9,809 7,208 6,258 5,801 5,801 5,801 5,315 5 Federal Housing Administration 328 393 397 374 154 213 243r 255 255 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 9,732 9,732 9,732 9,732 8 Tennessee Valley Authority 17,899 23,435 22,401 23,580 28,215 28,000 28,016 28,260 29,885 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 375,428 392,509 401,737 442,141 499,826 0 0 0 0 11 Federal Home Loan Banks 136,108 117,895 107,543 114,733 129,808 132,651 133,365 139,364 141,577 12 Federal Home Loan Mortgage Corporation 26,148 30,941 30,262 29,631 55,421 52,702 63,427 56,809 49,993 13 Federal National Mortgage Association 116,064 123,403 133,937 166,300 184,924 195,786 193,925 195,165 201,112 14 Farm Credit Banks8 54,864 53,590 52,199 51,910 51,406 51,636 51,759 51,861 53,123 15 Student Loan Marketing Association 28,705 34,194 38,319 39,650 38,397 38,795 38,790 40,840 39,784 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 29,9% 29,9% 29,9% 29,9% 29,9% 29,9% 29,9% MEMO 19 Federal Financing Bank debt13 134,873 179,083 185,576 154,994 128,616 129,329 127,348 126,490 128,187 Lending to federal and federally sponsored agencies 20 Export-Import Bank 10,979 11,370 9,803 7,202 6,252 5,795 5,795 5,795 55,,330099 21 Postal Service6 6,195 6,698 8,201 10,440 10,182 9,732 9,732 9,732 9,732 22 Student Loan Marketing Association 4,880 4,850 4,820 4,790 4,790 4,790 4,760 4,760 4,760 23 Tennessee Valley Authority 16,519 14,055 10,725 6,975 6,325 6,325 6,325 6,325 6,325 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other lending14 25 Farmers Home Administration 53,311 52,324 48,534 42,979 38,619 38,619 38,619 38,619 38,619 26 Rural Electrification Administration 19,265 18,890 18,562 18,172 17,897 17,653 17,561 17,561 17,578 27 Other 23,724 70,896 84,931 64,436 44,551 46,415 44,556 43,698 45,864 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 • May 1994 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1993 1994 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11999911 11999922 11999933 oorr uussee July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 AH issues, new and refunding1 154,402 215,191 279,945 24,087 24,438 23,504 21,900 18,094 24,520 16,102 12,918 By type of issue 2 General obligation 55,100 78,611 90,599 8,537 6,414 5,884 7,495 6,422 6,542 4,622 4,365 3 Revenue 99,302 136,580 189,346 15,550 18,024 17,620 14,405 11,672 17,978 11,000 8,553 By type of issuer 4 State 24,939 25,295 n.a. 2,944 2,319 2,758 3,216 885 1,265 1,235 921 5 Special district or statutory authority 80,614 129,686 n.a. 12,398 13,769 13,113 9,875 10,992 16,485 10,025 10,263 6 Municipality, county, or township 48,849 60,210 n.a. 8,616 8,307 7,476 8,418 4,528 6,770 4,362 3,514 7 Issues for new capital 116,953 120,272 91,434 8,751 8,001 8,759 7,261 6,734 9,543 5,418 8,268 By use of proceeds 8 Education 21,121 22,071 17,098 1,723 1,883 1,886 547 1,416 1,227 1,634 2,232 9 Transportation 13,395 17,334 9,571 653 1,062 789 304 979 429 305 1,111 10 Utilities and conservation 21,039 20,058 11,802 922 1,646 1,255 593 687 1,454 325 1,281 11 Social welfare 25,648 21,796 n.a. 1,555 681 2,199 1,764 n.a. 2,171 n.a. 1,685 12 Industrial aid 8,376 5,424 6,381 429 212 329 518 673 1,272 488 226 13 Other purposes 30,275 33,589 29,519 3,453 2,544 2,362 3,737 1,820 2,990 1,644 1,733 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 1994 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999911 11999922 11999933 oorr iissssuueerr June July Aug. Sept.* Oct.* Nov.* Dec. Jan. 1 All issues' 465,246r 559,729* n.a. 66,164* 49,661* 53,513* 64,875 56,491 54,907 45,135 50,331 2 Bonds2 389,822 471,404* n.a. 56,370* 40,065* 44,246* 54,182 45,956 43,313 34,604 44,500 By type of offering 3 Public, domestic 286,930 377,960* 488,895 51,943* 37,392* 40,447* 49,281 42,805 39,519 32,947 4400,,000000 4 Private placement, domestic- 74,930 65,853 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 27,962 27,591 41,533 4,427* 2,673 3,799 4,900 3,151 3,794 1,657 4,500 By industry group 6 Manufacturing 86,628 82,058* 67,411 8,707* 2,498* 6,132 4,095 3,273 3,364 33,,006688 33,,995544 7 Commercial and miscellaneous 36,666 43,043* 37,873 2,530* 5,452* 2,331 2,288 6,466 3,078 2,348 3,294 8 Transportation 13,598 9,979 8,234 948 611 723 288 1,416 687 1,045 693 9 Public utility 23,944r 48,055 52,742 5,874 5,797* 3,474* 5,163 2,585 1,763 2,336 2,726 10 Communication 9,431 15,394 29,040 2,473 2,331 2,979 2,237 2,991 1,015 2,001 2,592 11 Real estate and financial 219,555r 272,875* 335,127 35,838* 23,376* 28,607 40,110 29,227 33,407 23,806 31,241 12 Stocks2 75,424 88,325 110,647 9,794 9,596* 9,267 10,693 10,535 11,594 10,531 5,831 By type of offering 13 Public preferred 17,085 21,339 20,533 876 1,913* 3,319 1,358 2,549 1,385 650 1,592 14 Common 48,230 57,118 90,559 8,918 7,683 5,948 9,336 7,987 10,209 9,881 4,239 15 Private placement 10,109 9,867 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 24,111 22,723 2222,,227711 1,982 1,618* 1,961 2,274 2,121 2,169 2,267 1,556 17 Commercial and miscellaneous 19,418 20,231 25,761 2,025 2,525 1,457 2,242 1,842 3,061 1,970 1,484 18 Transportation 2,439 2,595 2,237 168 114 466 153 128 221 162 68 19 Public utility 3,474 6,532 7,050 893 495 582 908 1,103 371 129 293 20 Communication 475 2,366 3,439 65 n.a. 115 248 18 1,074 1,603 n.a. 21 Real estate and financial 25,507 33,879 49,889 4,660 4,844 4,675 4,666 5,323 4,486 4,381 2,430 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 1994 IItteemm 11999922 11999933 June July Aug. Sept. Oct. Nov/ Dec. Jan. 1 Sales of own shares2 647,055 n.a. 68,373 72,503 73,032 69,938 74,490 72,865 89,775 98,630 2 Redemptions of own shares 447,140 n.a. 46,923 44,922 46,382 49,270 47,168 51,306 62,764 61,944 3 Net sales3 199,915 n.a. 21,650 27,581 26,650 20,667 27,322 21,559 27,011 36,686 4 Assets4 1,056,310 n.a. 1,255,377 1,284,842 1,343,920 1,370,654 1,411,628 1,416,841 1,510,047 1,572,044 5 Cash5 73,999 n.a. 84,177 93,345 92,771 96,848 104,301 103,352 100,209 109,780 6 Other 982,311 n.a. 1,171,200 1,191,497 1,251,149 1,273,807 1,307,327 1,303,489 1,409,838 1,462,264 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 1992 1993 AAccccoouunntt 11999911 11999922 11999933 Q1 Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Profits with inventory valuation and capital consumption adjustment 369.5 407.2 n.a. 409.9 411.7 367.5 439.5 432.1 458.1 468.5 510.5 2 Profits before taxes 362.3 395.4 n.a. 404.3 409.5 357.9 409.9 419.8 445.6 443.8 491.0 3 Profits tax liability 129.8 146.3 n.a. 147.0 153.0 130.1 155.0 160.9 173.3 169.5 193.6 4 Profits after taxes 232.5 249.1 n.a. 257.3 256.5 227.8 254.9 258.9 272.3 274.3 297.4 5 Dividends 137.4 150.5 169.0 138.0 146.1 155.2 162.9 167.5 168.5 169.7 170.3 6 Undistributed profits 95.2 98.6 n.a. 119.3 110.4 72.7 92.0 91.4 103.9 104.6 127.3 7 Inventory valuation 4.9 -5.3 -7.2 -4.6 -13.7 -7.8 4.9 -12.7 -12.2 1.0 -4.3 8 Capital consumption adjustment 2.2 17.1 24.3 10.2 16.0 17.4 24.7 25.1 24.7 23.8 23.9 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 Ql 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 1100..8844 9.20 8.98 8.47 8.89 9.10 11.14 11.37 10.83 Transportation 5 Railroad 6.67 6.20 66..2211 6.32 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 other 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 • May 1994 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1992 1993 AAccccoouunntt 11999900 11999911 11999922 Ql 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 47.9 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 425.1 412.6 415.5 409.0 413.2 411.1 415.5 406.6 408.0 408.6 8 All other 113.9 149.0 150.6 145.5 139.4 146.5 150.6 155.0 156.6 169.7 9 Total assets 539.0 561.6 566.1 554.5 552.6 557.6 566.1 561.6 564.6 578.3 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 178.2 191.3 195.3 189.8 191.9 191.4 195.3 195.1 195.8 198.1 16 All other liabilities 63.9 69.0 71.2 72.0 73.4 73.7 71.2 74.2 81.3 87.6 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 539.6 561.2 566.1 554.6 552.7 559.4 566.1 561.7 564.6 578.3 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 1994 TTyyppee ooff ccrreeddiitt 11999911 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan. Seasonally adjusted 11 TToottaall 519,910 534,845 532,828 525,744 527,819 529,310 532,687" 532,828 535,567 22 CCoonnssuummeerr 154,822 157,707 159,791 153,420 154,707 155,700 157,438" 159,791 159,313 33 RReeaall eessttaattee22 65,383 68,011 68,174 67,216 66,871 67,983 68,540 68,174 69,441 44 BBuussiinneessss 299,705 309,127 304,863 305,108 306,241 305,627 306,709" 304,863 306,813 Not seasonally adjusted 5 Total 523,192 538,158 536,124 521,094 524,937 528,869 532,354" 536,124 535,138 6 Consumer 155,713 158,631 160,734 154,218 155,4% 156,712 157,848" 160,734 159,186 7 Motor vehicles 63,415 57,605 55,274 55,247 55,057 54,324 55,337 55,274 56,509 8 Other consumer 58,522 59,522 62,189 56,616 57,588 58,278 59,463 62,189 61,427 9 Securitized motor vehicles4 23,166 29,775 34,659 32,856 33,549 35,212 34,301" 34,659 32,924 10 Securitized other consumer 10,610 11,729 8,611 9,498 9,302 8,898 8,747 8,611 8,325 11 Real estate2 65,760 68,410 68,577 67,565 67,212 68,425 68,718 68,577 69,385 12 Business 301,719 311,118 306,814 299,311 302,229 303,732 305,788" 306,814 306,568 13 Motor vehicles 90,613 87,456 90,172 84,920 86,019 86,129 88,510 90,172 88,377 14 Retail5 22,957 19,303 16,024 17,264 18,365 16,599 16,723 16,024 16,965 15 Wholesale6 31,216 29,962 31,067 25,136 25,458 27,144 29,260 31,067 27,975 16 Leasing 36,440 38,191 43,081 42,520 42,1% 42,386 42,526 43,081 43,437 17 Equipment 141,399 151,607 148,858 146,404 147,905 148,357 146,703" 148,858 147,915 18 Retail 30,962 32,212 33,266 33,676 33,789 33,357 32,360" 33,266 33,109 19 Wholesale6 9,671 8,669 8,007 8,059 8,113 8,091 7,802 8,007 7,9% 20 Leasing 100,766 110,726 107,585 104,669 106,004 106,909 106,541 107,585 106,810 21 Other business7 60,900 57,464 51,054 53,536 53,861 53,%9 53,886 51,054 50,821 22 Securitized business assets4 8,807 14,590 16,730 14,451 14,444 15,277 16,690" 16,730 19,456 23 Retail 576 1,118 1,830 1,220 1,168 1,690 1,953" 1,830 1,6% 24 Wholesale 5,285 8,756 9,697 8,329 8,529 8,785 9,407 9,697 12,358 25 Leasing 2,946 4,716 5,203 4,902 4,747 4,802 5,330 5,203 5,402 1. Includes finance company subsidiaries of bank holding companies but not of 5. Passenger car fleets and commercial land vehicles for which licenses are retailers and banks. Data are before deductions for unearned income and losses. required. Data in this table also appear in the Board's G.20 (422) monthly statistical release. 6. Credit arising from transactions between manufacturers and dealers, that is, For ordering address, see inside front cover. floor plan financing. 2. Includes all loans secured by liens on any type of real estate, for example, 7. Includes loans on commercial accounts receivable, factored commercial first and junior mortgages and home equity loans. accounts, and receivable dealer capital; small loans used primarily for business or 3. Includes personal cash loans, mobile home loans, and loans to purchase other farm purposes; and wholesale and lease paper for mobile homes, campers, and types of consumer goods such as appliances, apparel, general merchandise, and travel trailers. recreation vehicles. 4. Outstanding balances of pools upon which securities have been issued; these Digitized for FRAbaSlaEncRes are no longer carried on the balance sheets of the loan originator. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A37 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1993 1994 IItteemm 11999911 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 155.0 158.1 163.1 158.1 155.3 169.2 174.4 167.9 168.1 157.9 2 Amount of loan (thousands of dollars) 114.0 118.1 123.0 122.2 120.8 128.4 134.0 128.7 127.9 124.1 3 Loan-to-price ratio (percent) 75.0 76.6 78.0 78.4 78.5 78.0 79.1 79.2 78.0 80.2 4 Maturity (years) . 26.8 25.6 26.1 26.4 26.5 26.7 26.9 26.8 27.2 27.0 5 Fees and charges (percent of loan amount)2 1.71 1.60 1.30 1.21 1.13 1.23 1.23 1.10 1.18 1.16 Yield (percent per year) 6 Contract rate1 9.02 7.98 7.02 6.86 6.76 6.61 6.61 6.74 6.77 6.67 7 Effective rate1,3 9.30 8.25 7.24 7.05 6.95 6.80 6.80 6.92 6.95 6.85 8 Contract rate (HUD series)4 9.20 8.43 7.37 6.89 6.94 7.05 7.38 7.26 7.13 7.54 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 9.25 8.46 7.46 7.02 7.03 7.08 7.51 7.52 7.05 7.59 10 GNMA securities6 8.59 7.71 6.65r 6.42 6.15 6.11 6.61r 6.58r 6.45 6.72 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 122,837 142,833 172,791 177,992 180,057 182,524 185,463 190,861 194,441 1%,078 12 FHA/VA insured 21,702 22,168 22,876 22,834 22,810 22,978 23,334 23,857 23,7% 23,789 13 Conventional 101,135 120,664 149,914 155,158 157,247 159,546 162,129 167,004 170,645 172,289 Mortgage transactions (during period) 14 Purchases 37,202 75,905 92,037 8,176 8,866 8,780 8,979 12,123 7,919 5,427 Mortgage commitments (during period) 15 Issued 40,010 74,970 92,537 8,581 9,814 7,515 11,144 8,461 6,159 4,858 16 To sell8 7,608 10,493 5,097 2,585 0 0 0 209 664 525 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 24,131 29,959 42,789 44,396 46,858 50,108 52,933 55,012 56,067 n.a. 18 FHA/VA insured 484 408 327 324 323 321 324 321 319 n.a. 19 Conventional 23,283 29,552 42,462 44,072 46,536 49,787 52,610 54,691 55,747 n.a. Mortgage transactions (during period) 20 Purchases 99,965 191,125 229,242 19,636 18,372 18,658 27,062 29,3% 22,611 n.a. 21 Sales 92,478 179,208 208,723 18,008 16,230 15,985 24,028 26,607 21,253 n.a. Mortgage commitments (during periodf 22 Contracted 114,031 261,637 274,599 17,085 16,495 24,614 39,977 24,176 31,393 n.a. 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 Nonfinancial Statistics • May 1994 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1992 1993 Type of holder and property 11999900 11999911 11999922 Q4 Q1 Q2 Q3* Q4P 1 All holders 3,761,525 3,923,371 4,042,645' 4,042,645' 4,059,199' 4,099,591' 4,155,690 4,218,693 By type of property 2 One- to four-family residences 2,615,435 2,778,803 2,953,527 2,953,527 2,975,134' 3,024,789* 3,085,698 3,146,381 3 Multifamily residences 309,369 306,410 294,976 294,976 294,042' 291,178* 290,679 292,052 4 Commercial 758,313 759,023 713,701 713,701 708,966' 702,210* 698,299 699,488 5 Farm 78,408 79,136 80,441r 80,441' 81,057' 81,414* 81,014 80,772 By type of holder 6 Major financial institutions 1,914,315 1,846,726 1,769,187 1,769,187 1,753,045 1,765,176* 1,768,931 1,777,772 7 Commercial banks 844,826 876,100 894,513 894,513 891,755 910,989* 922,492 940,547 8 One- to four-family 455,931 483,623 507,780 507,780 507,497 526,817' 538,906 556,778 9 Multifamily 37,015 36,935 38,024 38,024 37,425 38,058* 37,621 38,150 10 Commercial 334,648 337,095 328,826 328,826 326,853 325,519' 325,124 324,749 11 Farm 17,231 18,447 19,882 19,882 19,980 20,595 20,841 20,870 12 Savings institutions 801,628 705,367 627,972 627,972 617,163 612,458* 609,584 603,559 13 One- to four-family 600,154 538,358 489,622 489,622 480,415 480,722' 478,297 472,492 14 Multifamily 91,806 79,881 69,791 69,791 70,608 68,303' 68,649 68,533 15 Commercial 109,168 86,741 68,235 68,235 65,808 63,111* 62,318 62,214 16 Farm 500 388 324 324 332 322 320 319 17 Life insurance companies 267,861 265,258 246,702 246,702 244,128 241,729 236,855 233,667 18 One- to four-family 13,005 11,547 11,441 11,441 11,316 11,195 10,%7 10,814 19 Multifamily 28,979 29,562 27,770 27,770 27,466 27,174 26,620 26,248 20 Commercial 215,121 214,105 198,269 198,269 196,100 194,012 190,061 187,403 21 Farm 10,756 10,044 9,222 9,222 9,246 9,348 9,206 9,201 22 Federal and related agencies 239,003 266,146 286,263 286,263 287,081' 298,991* 309,579 321,907 23 Government National Mortgage Association.... 20 19 30 30 45 45 43 43 24 One- to four-family 20 19 30 30 37 38 37 37 25 Multifamily 0 0 0 0 8 7 7 7 26 Farmers Home Administration 41,439 41,713 41,695 41,695 41,529* 41,446* 41,424 41,386 27 One- to four-family 18,527 18,4% 16,912 16,912 16,536* 16,133* 15,714 15,303 28 Multifamily 9,640 10,141 10,575 10,575 10,650* 10,739* 10,830 10,940 29 Commercial 4,690 4,905 5,158 5,158 5,187* 5,250* 5,347 5,406 30 Farm 8,582 8,171 9,050 9,050 9,156* 9,324' 9,533 9,739 31 Federal Housing and Veterans' Administrations 8,801 10,733 12,581 12,581 13,027 12,945 11,797 12,215 32 One- to four-family 3,593 4,036 5,153 5,153 5,631 5,635 4,850 5,364 33 Multifamily 5,208 6,697 7,428 7,428 7,3% 7,311 6,947 6,851 34 Resolution Trust Corporation 32,600 45,822 32,045 32,045 27,331 21,973 19,925 17,284 35 One- to four-family 15,800 14,535 12,960 12,960 11,375 8,955 8,381 7,202 36 Multifamily 8,064 15,018 9,621 9,621 8,070 6,743 6,002 5,284 37 Commercial 8,736 16,269 9,464 9,464 7,886 6,275 5,543 4,797 38 Farm 0 0 0 0 0 0 0 0 39 Federal National Mortgage Association 104,870 112,283 137,584 137,584 141,192 151,513 160,721 166,642 40 One- to four-family 94,323 100,387 124,016 124,016 127,252 137,340 146,009 151,310 41 Multifamily 10,547 11,8% 13,568 13,568 13,940 14,173 14,712 15,332 42 Federal Land Banks 29,416 28,767 28,664 28,664 28,536 28,592 28,810 28,860 43 One- to four-family 1,838 1,693 1,687 1,687 1,679 1,682 1,695 1,698 44 Farm 27,577 27,074 26,977 26,977 26,857 26,909 27,115 27,162 45 Federal Home Loan Mortgage Corporation 21,857 26,809 33,665 33,665 35,421 42,477 46,859 55,476 46 One- to four-family 19,185 24,125 31,032 31,032 32,831 39,905 44,315 52,929 47 Multifamily 2,672 2,684 2,633 2,633 2,589 2,572 2,544 2,547 48 Mortgage pools or trusts5 1,079,103 1,250,666 1,425,546 1,425,546 1,462,181* 1,473,323' 1,514,002 1,546,818 49 Government National Mortgage Association 403,613 425,295 419,516 419,516 421,514 413,166 415,076 414,066 50 One- to four-family 391,505 415,767 410,675 410,675 412,798 404,425 405,%3 404,864 51 Multifamily 12,108 9,528 8,841 8,841 8,716 8,741 9,113 9,202 52 Federal Home Loan Mortgage Corporation 316,359 359,163 407,514 407,514 420,932 422,882 430,089 439,029 53 One- to four-family 308,369 351,906 401,525 401,525 415,279 417,646 425,154 434,494 54 Multifamily 7,990 7,257 5,989 5,989 5,654 5,236 4,935 4,535 55 Federal National Mortgage Association 299,833 371,984 444,979 444,979 457,316 465,220 481,880 495,525 56 One- to four-family 291,194 362,667 435,979 435,979 448,483 456,645 473,599 486,804 57 Multifamily 8,639 9,317 9,000 9,000 8,833 8,575 8,281 8,721 58 Farmers Home Administration4 66 47 38 38 34* 32' 30 28 59 One- to four-family 17 11 8 8 7* 6* 6 5 60 Multifamily 0 0 0 0 0 0 0 0 61 Commercial 24 19 17 17 16* 15* 14 13 62 Farm 26 17 13 13 11* 11* 10 10 63 Private mortgage conduits 59,232 94,177 153,499 153,499 162,385* 172,023* 186,927 198,171 64 One- to four-family 53,335 84,000 132,000 132,000 137,000 145,000 158,000 164,000 65 Multifamily 731 3,698 6,305 6,305 6,665* 7,407* 7,991 8,701 66 Commercial 5,166 6,479 15,194 15,194 18,720* 19,616* 20,936 25,469 67 Farm 0 0 0 0 0 0 0 0 68 Individuals and others6 529,104 559,833 561,649* 561,649* 556,892* 562,101* 563,178 572,1% 69 One- to four-family 348,638 367,633 372,708 372,708 366,998* 372,645* 373,805 382,288 70 Multifamily 85,969 83,796 85,430 85,430 86,023* 86,140* 86,428 87,000 71 Commercial 80,761 93,410 88,538 88,538 88,3%* 88,412* 88,956 89,438 72 Farm 13,737 14,994 14,973r 14,973' 15,474* 14,904* 13,990 13,471 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 1994 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999911 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan. Seasonally adjusted 1 Total 733,510 741,093 790,082 762,503 768,573 775,620r 782,561r 790,082 796,086 2 Automobile 260,898 259,627 278,321 268,784 270,650 273,822r 276,853r 278,321 278,956 3 Revolving 243,564 254,299 281,474 270,753 273,703 277,125 279,273 281,474 284,802 4 Other 229,048 227,167 230,288 222,967 224,220 224,673r 226,435r 230,288 232,328 Not seasonally adjusted 5 Total 749,052 756,944 807,298 763,268 770,384 776,101r 784,148' 807,298 801,509 By major holder 6 Commercial banks 340,713 331,869 367,140 345,449 349,699 352,559 358,429 367,140 336655,,223333 7 Finance companies 121,937 117,127 117,464 111,864 112,645 112,602r 114,800" 117,464 117,937 8 Credit unions 92,681 97,641 114,451 108,095 109,687 110,830 112,342 114,451 115,055 9 Retailers 39,832 42,079 47,382 39,688 39,842 40,310 42,047 47,382 44,986 10 Savings institutions 45,965 43,461 33,000 35,919 34,985 34,251 33,500 33,000 32,500 11 Gasoline companies 4,362 4,365 4,212 4,728 4,574 4,599 4,507 4,212 4,189 12 Pools of securitized assets 103,562 120,402 123,649 117,525 118,952 120,950 118,523r 123,649 121,609 By major type of credit3 13 Automobile 261,219 259,964 278,690 270,495 273,291 275,882r 227777,,006600** 278,690 278,175 14 Commercial banks 112,666 109,743 123,734 118,535 120,574 122,162 122,989 123,734 123,826 15 Finance companies 63,415 57,605 55,274 55,247 55,057 54,324r 55,337r 55,274 56,509 16 Pools of securitized assets2 28,915 33,878 36,781 35,569 36,123 37,630 36,569* 36,781 34,947 17 Revolving 256,876 267,949 2%,445 269,663 272,579 275,109 280,080 296,445 290,099 18 Commercial banks 138,005 132,582 148,698 135,466 136,738 137,844 142,382 148,698 144,776 19 Retailers 34,712 36,629 41,378 34,099 34,214 34,668 36,319 41,378 39,057 20 Gasoline companies 4,362 4,365 4,212 4,728 4,574 4,599 4,507 4,212 4,189 21 Pools of securitized assets 63,595 74,243 77,416 71,562 72,646 73,556 72,357 77,416 77,280 22 Other 230,957 229,031 232,162 223,109 224,514 225,110r 227,008* 232,162 233,234 23 Commercial banks 90,042 89,544 94,708 91,448 92,387 92,553 93,058 94,708 96,631 24 Finance companies 58,522 59,522 62,189 56,616 57,588 58,278r 59,463* 62,189 61,427 25 Retailers 5,120 5,450 6,004 5,589 5,628 5,642 5,728 6,004 5,929 26 Pools of securitized assets 11,052 12,281 9,452 10,394 10,183 9,764 9,597 9,452 9,382 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 1994 IItteemm 11999911 11999922 11999933 July Aug. Sept. Oct. Nov. Dec. Jan. INTEREST RATES Commercial banks2 1 48-month new car 11.14 9.29 8.09 n.a. 7.98 n.a. n.a. 7.63 n.a. n.a. 2 24-month personal 15.18 14.04 13.47 n.a. 13.45 n.a. n.a. 13.22 n.a. n.a. 3 120-month mobile home 13.70 12.67 11.87 n.a. 11.53 n.a. n.a. 11.55 n.a. n.a. 4 Credit card 18.23 17.78 16.83 n.a. 16.59 n.a. n.a. 16.30 n.a. n.a. Auto finance companies 5 New car 12.41 9.93 9.48 9.37 9.21 9.21 9.25 8.% 88..8800 77..5555 6 Used car 15.60 13.80 12.79 12.46 12.48 12.52 12.58 12.41 12.33 12.02 OTHER TERMS3 Maturity (months) 1 New car 55.1 54.0 54.5 54.7 54.9 54.7 55.0 54.5 5544..00 5522..99 8 Used car 47.2 47.9 48.8 49.0 49.0 48.8 48.2 48.4 48.3 50.0 Loan-to-value ratio 9 New car 88 89 91 91 91 91 90 91 90 91 10 Used car 96 97 98 98 99 98 98 98 98 98 Amount financed (dollars) 11 New car 12,494 13,584 14,332 14,430 14,324 14,348 14,650 14,839 15,097 1155,,333300 12 Used car 8,884 9,119 9,875 9,9% 10,104 9,808 9,%9 10,230 10,349 10,434 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 inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic NonfinancialS tatistics • May 1994 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1992 1993* Transaction rutponrv nr <f*r1nr 11998888 11998899 11999900 11999911 11999922 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total net borrowing by domestic noniinancial sectors .. 752.6 723.0 631.0 475.5 582.4 602.6r 586.2 611.1* 529.5* 404.5 677.6 577.0 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 Budget 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 597.5 576.6 384.1 197.3 278.4 278.8r 233.3r 312.0* 289.4* 175.0 329.3 399.8 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 48.3 7 Corporate bonds 103.1 73.8 47.1 78.8 67.5r 76.5r 77.8 61.7* 54.0* 82.0 72.0 68.0 8 Mortgages 279.6 269.1 188.7 165.1 120.8r 184.7r 69.6r 134.8* 94.0* 101.3 134.4 201.5 9 Home mortgages 219.6 212.5 177.2 166.0 176.0 216.5 111.6 203.3 172.8 121.8 174.2 226.9 10 Multifamily residential 16.1 12.0 3.4 -2.5 -11.1 11.6 -16.9 -11.2 -27.8* -4.7 -12.4 -4.0 11 Commercial 48.5 47.3 8.9 .9 -45.5 -46.9 -25.7 -57.8* -51.5* -18.2 -28.9 -19.8 12 Farm -4.6 -2.7 -.8 .7 1.3r 3.5r ,6r .6* .5* 2.5 1.4 -1.6 13 Consumer credit 50.1 49.5 13.4 -13.1 9.3 -9.8 -14.7 13.5 48.3* 19.2 22.9 60.7 14 Bank loans n.e.c 44.7 36.4 4.2 -46.8 -5.6 -47.3 27.7 -24.0* 21.3* -39.7 31.7 7.3 15 Commercial paper 11.9 21.4 9.7 -18.4 8.6 2.5 -2.6 9.3 25.4 -27.1 33.7 23.8 16 Other loans 54.3 61.0 63.6 -37.8 12. lr 4.3r -1.0* 40.8 4.1* -23.1 -32.5 -9.8 By borrowing sector 17 Household 300.1 276.7 207.7 168.4 215.0 199.2 176.5 217.9* 266.5* 130.8 213.7 321.7 18 Nonfinancial business 248.4 236.3 121.9 -33.4 4.0 17.5r -10.1 20.6* -12.2* -27.6 46.6 26.0 19 Farm -10.0 .5 1.8 2.4 1.2r 3.6r 3.5r -.2* -1.9* -.3 3.8 2.0 20 Nonfarm noncorporate 57.2 49.4 19.4 -24.5 -39.4 -21.8 -47.4 -37.3 -51.0 -32.7 -31.4 -23.1 21 Corporate 201.3 186.5 100.7 -11.3 42. lr 35.8r 33.8r 58.2* 40.7* 5.4 74.3 47.1 22 State and local government 48.9 63.5 54.5 62.3 59.4 62.1 66.9 73.5 35.1 71.7 69.1 52.1 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 40.1 81.8 24 Bonds 6.9 4.9 21.4 14.1 17.3 4.9 21.9 20.3 22.2 75.6 42.4 83.7 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 Commercial 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 and other loans -7.5 -7.6 -7.0 -9.8 -.6 3.6 -6.1 .5 -.4 -5.3 -8.2 -1.3 28 Total domestic plus foreign 759.0 733.1 654.9 489.4 606.6 604.6r 643.9* 649.0* 528.8* 454.8 717.6 658.8 Financial sectors 29 Total net borrowing by financial sectors 239.9 213.7 193.5 150.4 216.4r 175.0r 211.6* 304.1* 174.8* 146.1 131.6 386.1 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 62.7 273.7 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 32 Mortgage pool securities 74.9 124.3 150.3 136.6 115.6 115.3 146.9 101.6 98.4 133.5 -6.1 105.9 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 60.6r 48.2r 16.3* 134.8* 42.9* -19.6 68.9 112.4 35 Corporate bonds 49.0 37.3 40.8 56.8 65.3* 36.0r 64.4* 81.2* 79.4* 55.3 55.8 97.7 36 Mortgages .3 .5 A .8 .0 -.4 .1 .4* .0* .9 2.7 6.2 37 Bank loans n.e.c -3.8 6.0 1.1 17.1 -4.8 22.0 -39.1 17.5* -19.8* -21.2 -5.9 -14.0 38 Open market paper 54.8 31.3 8.6 -32.0 -.7 1.1 -14.8 17.5 -6.5 -73.1 -17.3 -9.7 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 98.4 133.5 -6.1 105.9 42 Private 120.1 64.2 26.1 4.6 60.6r 48.2r 16.3* 134.8* 42.9* -19.6 68.9 112.4 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 holding companies 5.2 6.2 -27.7 -2.5 2.3 10.9 -9.2 6.6 .8 21.1 1.3 -2.1 45 Funding corporations 39.1 13.8 12.5 -13.6 1.6 16.1 29.2 -7.7 -31.1 -51.9 8.2 -13.2 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 18.4 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 16.0 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 2.3* -5.1* -1.4 2.5 6.1 52 Issuers of asset-backed securities (ABSs) 37.6 28.9 51.1 51.0 58.0* 42.7r 50.3* 74.3* 64.8* 42.6 50.8 78.4 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 1993r TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 11999922 Ql Q2 Q3 Q4 Ql Q2 Q3 All sectors 53 Total net borrowing, all sectors 998.8 946.8 848.4 639.8 822.9" 779.5" 855.5" 953.1" 703.6" 600.9 849.2 1,044.9 54 U.S. government securities 274.9 295.8 414.4 424.0 459.8 450.6 548.1 468.5 372.0 395.3 410.9 450.9 55 Tax-exempt securities 53.7 65.3 57.3 69.6 65.7 68.0 76.6 75.8 42.4 62.4 67.2 48.3 56 Corporate and foreign bonds 159.0 116.0 109.2 149.6 150.lr 117.3" 164.1" 163.3" 155.6" 212.9 170.2 249.4 57 Mortgages 280.0 269.6 189.1 165.8 120.8r 184.3" 69.7" 135.3" 93.9" 102.2 137.1 207.7 58 Consumer credit 50.1 49.5 13.4 -13.1 9.3 -9.8 -14.7 13.5 48.3" 19.2 22.9 60.7 59 Bank loans n.e.c 39.2 42.3 2.4 -26.6 -8.1 -23.9 2.8 -2.5 -8.8 -59.3 32.3 -5.8 60 Open market paper 75.4 65.9 30.7 -44.0 13.1 -4.5 10.3 39.9 6.8 -121.9 15.7 12.5 61 Other loans 66.6 42.4 31.8 -85.6 12.2 -2.5" -1.3" 59.3 -6.6" -9.9 -7.2 21.2 Funds raised through mutual funds and corporate equities 62 Total net share issues -98.6 -59.6 22.2 210.6 284.0r 273.8" 264.1 297.7" 300.3" 300.7 470.7 502.1 63 Mutual funds 6.1 38.5 67.9 150.5 206.7 174.4 199.5 235.2 217.7 240.9 357.5 337.6 64 Corporate equities -104.7 -98.1 -45.7 60.1 77.3" 99.5" 64.5" 62.5" 82.6" 59.7 113.2 164.5 65 Nonfinancial corporations -129.5 -124.2 -63.0 18.3 27.0" 46.0 36.0 12.0" 14.0 9.0 25.0 30.0 66 Financial corporations 23.9 8.8 9.9 11.2 19.6" 24.4" 17.4 15.7" 21.1" 18.8 34.2 37.1 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 54.0 97.5 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Financial Statistics • May 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 998.8 946.8 848.4 639.8 822.9r 779.5* 855.5* 953.1* 703.6* 600.9* 849.2 1,044.9 2 Private domestic nonfinancial sectors 196.1 122.6 162.8 -16.1 65.3R 134.0* 145.6* -105.4* 87.0* -93.1* -95.8 -126.2 3 Households 170.3 78.6 140.1 -49.7 37.0* 117.5* 99.8* -135.7* 66.6* -88.6* -91.9 -139.6 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 -12.6* 6.7 40.1 6 State and local governments 17.1 31.1 29.6 33.5 -5.7R -4.7* 11.7* -14.1* -15.5* 11.8* -7.5 -24.6 7 U.S. government -10.6 -3.1 33.7 10.5 -12.0* 15.2 -23.0 -26.7 -13.3* -24.7* -27.8 -15.2 8 Foreign 108.6 84.4 82.1 25.6 100.8* 96.4* 140.8* 78.1 87.8* 73.2 92.6 140.8 Y Financial sectors 704.8 742.9 569.9 619.8 668.8* 534.0* 592.1* 1,006.9* 542.1* 645.6* 880.1 1,045.5 10 Government sponsored enterprises 33.2 -4.1 16.4 14.2 69.0 92.7 38.6 73.0 71.7 14.6 134.1 157.7 ii Federally related mortgage pools 74.9 124.3 150.3 136.6 115.6 115.3 146.9 101.6 98.4 133.5* -6.1 105.9 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 86.4 153.4 131.9 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 -.4 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 429.7 452.9 270.0 353.7 361.6* 212.5* 314.9* 668.6* 250.4* 366.5* 566.0 621.8 19 Thrift institutions 114.8 -86.6 -153.3 -123.0 -59.5* -104.8* -75.7* -42.6 -15.0* -33.3* -5.2 12.2 20 Insurance 199.0 257.4 181.6 234.3 177.9* 98.0* 190.4* 261.4* 161.6* 257.0* 172.9 261.6 21 Life insurance companies 104.0 101.8 94.4 83.2 82.4 73.7 66.9 85.1 103.7 122.1 108.0 117.1 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 8.6 23 Private pension funds 29.2 81.1 17.2 85.3 37.3 -33.2 74.1 99.9 8.4 118.0 11.1 91.9 24 State and local government retirement funds 36.6 44.7 43.5 33.5 45.5* 28.7* 33.0* 79.2* 41.2* 8.0* 43.2 44.0 25 Finance n.e.c 115.9 282.2 241.7 242.3 243.2* 219.3* 200.2* 449.7* 103.8* 142.8* 398.3 347.9 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 8.1 27 Mortgage companies -7.4 6.1 -8.0 11.4 .1 23.0 -38.5 28.9 -12.8 -20.8 31.7 -1.9 28 Mutual funds 11.9 23.8 41.4 90.3 123.7 95.1 123.7 156.9 119.2 130.2 193.4 168.4 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 3.8 8.5 -26.1 -65.0 51.5 11.5 31 Real estate investment trusts (REITs) .9 .5 -.7 -1.0 .4 -.7 2.6 -.3 -.1 2.9 .8 1.0 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 69.0 33 Asset-backed securities issuers (ABSs) 35.9 27.7 49.9 49.0 55.5* 40.4* 50.5* 72.0* 59.2* 42.1* 49.7 81.3 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 998.8 946.8 848.4 639.8 822.9* 779.5* 855.5* 953.1* 703.6* 600.9* 849.2 1,044.9 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 -4.0 1.7 37 Treasury currency and special drawing rights certificates .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 27.3* 25.6* 15.6* 41.5* 26.3* 53.6* 39.5 59.5 39 Pension fund reserves 140.1 309.7 158.1 358.8 227.8* 144.5* 208.0* 291.7* 267.0* 325.2* 223.0 296.1 40 Interbank claims 2.9 -16.5 34.2 -3.7 48.1* 25.7 36.9 79.8* 50.0* 19.8* 49.5 -19.8 41 Deposits at financial institutions 278.6 284.8 98.1 48.2 9.3 -.7 6.3 174.1 -142.7 -.4* 219.6 -5.3 42 Checkable deposits and currency 43.2 6.1 44.2 75.8 122.8 86.4 110.8 200.4 93.5 25.0 232.2 96.3 43 Small time and savings deposits 121.6 100.4 59.0 16.7 -60.8 -40.1 -81.8 -83.6 -37.8 -155.9* -57.3 -72.6 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 26.7 -22.4 -32.9 -37.7 66.5 -15.8 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 78.7 47 Foreign deposits 15.2 -3.6 14.6 -8.2 -10.2 -26.6 -43.2 43.0 -14.2 -13.9* -21.9 -34.6 48 Mutual fund shares 6.1 38.5 67.9 150.5 206.7 174.4 199.5 235.2 217.7 240.9 357.5 337.6 49 Corporate equities -104.7 -98.1 -45.7 60.1 77.3* 99.5* 64.5* 62.5* 82.6* 59.7* 113.2 164.5 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 77.2 51 Trade debt 89.6 59.4 32.1 -2.2 54.9* 78.0* 54.7* 54.0* 33.0* 26.9* 37.4 47.8 52 Taxes payable 5.3 2.0 -4.5 -8.5 7.9* 8.6* 6.2* 6.7* 10.3* 7.6* 2.2 4.2 53 Noncorporate proprietors' equity -24.0 -31.1 -35.5 -12.5 -5.7* -21.9* 15.9* -27.5* 10.5* -12.5* -21.0 -6.7 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 98.2 169.9 195.7* 94.9* 273.5* 202.6* 211.8* 213.4* 385.1 93.5 56 Total financial sources 1,632.0 1,883.8 1,306.5 1,501.3 1,665.5* 1,385.3* 1,745.8* 2,092.8* 1,437.9* 1,568.5* 2,325.7 2,072.7 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 -6.4 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 18.5* 23.2* 9.5* 40.2* 1.2* -20.1* 5.1 10.4 Liabilities not identified as assets (-) 60 Treasury currency -.1 -.2 .2 -.6 -.2 -.3 -.2 -.2 -.1 -.2 -.2 -.2 61 Interbank claims -3.0 -4.4 1.6 26.2 -4.9* 8.2 -18.2 -7.8* -1.7* 11.4* -5.7 -16.5 62 Security repurchase agreements -29.6 32.4 -31.5 5.2 31.1 -26.7 84.1 43.5 23.4 155.2 16.5 67.7 63 Taxes payable 6.3 2.3 .5 .4 6.9* -7.5* 7.1* 24.1* 4.0* -13.2* 14.1 8.3 64 Miscellaneous 47.3 -77.8 -23.6 -32.1 -21.1* -69.0* -65.9* 1.2* 49.3* -7.8* -36.1 -34.9 65 Total identified to sectors as assets 1,614.8 1,928.2 1,351.0 1,505.2 1,632.8* 1,432.3* 1,736.9* 1,999.2* 1,363.1* 1,444.9* 2,327.3 2,049.9 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 OUTSTANDING' Billions of dollars, end of period 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 Ql Q2 Q3 Q4 Ql Q2" Q3r Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 10,054.3 10,692.0 11,160.6 ll,747.2r 11,289.4" 11,427.2" 11,580.6" 11,747.2" 11,824.7" 11,983.4 1122,,112288..99 By (ending sector and instrument ? 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 33,,220011..22 33,,224477..33 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 Budget 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 8,666.9" • 8,429.6" 8,503.9" 8,581.7" 8,666.9" 8,684.5" 8,782.1 8,881.7 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 11,,222255..77 11,,224411..88 7 Corporate bonds 961.1 1,008.2 1,086.9 l,154.4r 1,106.1" 1,125.5" 1,140.9" 1,154.4" 1,174.9" 1,192.9 1,209.9 8 Mortgages 3,512.8 3,715.4 3,880.4 4,001.6" 3,917.9" 3,941.3" 3,979.4" 4,001.6" 4,017.9 4,057.6 4,112.2 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 2,944.1" 2,993.8 3,054.7 10 Multifamily residential 304.3 305.5 303.0 291.9 305.9 301.7 298.9 291.9 290.7" 287.6 286.6 11 Commercial 747.6 750.8 751.7 706.5 740.3 733.8 719.4 706.5 702.0" 694.8 689.8 1? Farm 80.5 78.4 79.1 80.4" 80.0" 80.2" 80.3" 80.4" 81.1" 81.4 81.0 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 750.8 747.8 701.0 695.6 685.5 694.0 686.2 695.6 683.0 691.8 691.6 15 Commercial paper 107.1 116.9 98.5 107.1 110.4 112.0 108.2 107.1 113.9" 124.0 123.2 16 Other loans 667.0 730.6 685.9 701.6" 686.5" 690.5" 696.1" 701.6" 691.1" 687.7 681.2 By borrowing sector 17 Household 3,371.4 3,594.8 3,762.7 3,978.0 3,782.6 3,837.3 3,900.1" 3,978.0 3,980.6" 44,,004444..66 44,,113322..77 18 Nonfinancial business 3,615.7 3,728.5 3,688.7 3,696.7" 3,701.7" 3,705.6" 3,698.6" 3,696.7" 3,696.7" 3,714.2 3,708.5 19 Farm 134.4 134.9 134.8 136.0" 133.4" 136.8" 137.6" 136.0" 133.7" 137.1 138.5 70 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 1,145.3" 1,139.3 1,130.8 71 Corporate 2,281.7 2,374.6 2,361.6 2,406.1" 2,380.7" 2,391.5" 2,395.8" 2,406.1" 2,417.8" 2,437.8 2,439.2 22 State and local government 816.1 870.5 932.8 992.2 945.3 961.0 983.1 992.2 1,007.2" 1,023.4 1,040.5 73 Foreign credit market debt held in United States 261.2 285.1 298.9 313.8 288.7 304.7 312.9 313.8 324.8 336.5 335555..66 74 Bonds 94.1 115.4 129.5 146.9 130.8 136.2 141.3 146.9 165.8 176.4 197.3 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 76 Commercial 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 and other loans 82.7 75.8 66.0 65.4 65.5 65.6 64.4 65.4 62.5 62.0 60.4 78 Total credit market debt owed by nonflnandal * sectors, domestic and foreign 10,315.5 10,977.1 11,459.5 12,061.0" 11,578.1" 11,732.0" 11,893.5" 12,061.0" 12,149.5" 12,319.8 1122,,448844..55 Financial sectors 79 Total credit market debt owed by financial sectors 2,362.7 2,559.4 2,709.7 2,941.7" 2,759.4" 2,815.2" 2,889.3" 2,941.7" 2,974.3" 3,010.3 33,,110044..77 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 11,,777744..55 11,,884422..22 31 Government-sponsored enteiprises securities 373.3 393.7 402.9 443.1 405.7 417.8 434.7 443.1 451.2 446688..44 551100..33 3? 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 1,114.8 1,140.9 1,145.6 1,221.7" 1,169.1" 1,173.6" 1,205.8" 1,221.7" 1,218.5" 1,235.8 1,262.5 35 Corporate bonds 509.1 549.9 606.6 678.2" 621.9" 638.0" 658.3" 678.2" 692.0" 706.0 730.4 36 Mortgages 4.0 4.3 5.1 5.1 5.0 5.0 5.1 5.1 5.4 6.0 7.6 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 52.4 38 Open market paper 409.1 417.7 385.7 394.3 393.2 390.5 394.6 394.3 379.2" 375.9 373.2 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 447733..22 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 4? Private financial sectors 1,114.8 1,140.9 1,145.6 1,221.7" 1,169.1" 1,173.6" 1,205.8" 1,221.7" 1,218.5" 1,235.8 1,262.5 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 holding companies 142.5 114.8 112.3 114.6 115.0 112.7 114.4 114.6 119.9 120.2 119.7 45 Funding corporations 125.4 137.9 124.3 135.2 137.6 144.9 143.0 135.2 127.6" 129.7 126.4 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 ..11 49 Finance companies 350.4 374.4 393.0 389.4 382.2 377.4 382.7 389.4 379.1 369.8 337733..99 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 15.9 52 Issuers of asset-backed securities (ABSs) 227.3 278.3 329.4 393.7" 346.3" 358.9" 377.5" 393.7" 404.3" 417.1 436.7 All sectors 53 Total credit market debt, domestic and foreign. 12,678.2 13,536.5 14,169.3 15,002.7" 14,337.4" 14,547.1" 14,782.8" 15,002.7" 15,123.8" 15,330.1 15,589.3 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 1,241.8 56 Corporate and foreign bonds 1,564.3 1,673.5 1,823.1 1,979.5" 1,858.7" 1,899.8" 1,940.6" 1,979.5" 2,032.7" 2,075.3 2,137.6 57 Mortgages 3.516.8 3,719.7 3,885.5 4,006.7" 3,923.0" 3,946.3" 3,984.5" 4,006.7" 4,023.3 4,063.7 4,119.7 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 823.0 818.3 791.7 783.7 780.2 782.7 780.2 783.7 764.3 773.5 770.2 60 Open market paper 579.2 609.9 565.9 579.0 574.1 579.9 583.6 579.0 565.4" 572.0 568.2 61 Other loans 896.5 928.4 835.8 851.7" 833.1" 837.7" 845.5" 851.7" 843.4" 846.7 845.3 Digitized for FRA1S. EDRata in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics • May 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 Q1 Q2 Q3 Q4 Ql Q2* Q3* CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 12,678.2 13,536.5 14,169.3 15,002.7R 14,337.4* 14,547.1* 14,782.8* 15,002.7* 15,123.8* 15,330.1 15,589.3 2 Private domestic nonfinancial sectors 2,096.4 2,246.8 2,205.8 2,288.3r 2,211.0* 2,231.4* 2,209.1* 2,288.3* 2,257.0* 2,215.3 2,187.7 3 Households 1,326.8 1,454.6 1,380.0 l,434.2r 1,388.6* 1,392.5* 1,369.4* 1,434.2* 1,412.7* 1,365.9 1,341.7 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 Nonfinancial corporate business 181.2 175.8 180.1 216.4 180.0 192.6 199.5 216.4 205.9* 211.7 217.1 6 State and local governments 531.9 561.5 595.1 589.4r 593.1* 597.5* 592.1* 589.4* 591.5* 591.4 583.4 1 U.S. government 205.4 239.1 247.0 235. 251.2 246.3 239.2 235.0* 229.2* 223.2 218.9 8 Foreign 778.7 897.5 936.2 l,031.6r 960.7* 995.9* 1,015.5* 1,031.6* 1,041.3* 1,064.5 1,099.7 9 Financial sectors 9,597.7 10,153.1 10,780.3 ll,447.8r 10,914.4* 11,073.5* 11,319.0* 11,447.8* 11,596.2* 11,827.1 12,083.0 10 Government-sponsored enterprises 355.4 371.8 397.7 466.7 419.9 429.0 446.3 466.7 464.1 496.7 535.1 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 3,040.2 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 2,674.7 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 18.6 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 6,457. lr 6,178.6* 6,255.4* 6,415.3* 6,457.1* 6,567.7* 6,707.8 6,856.4 19 Thrift institutions 1,475.4 1,324.6 1,197.3 1,140.9 1,171.7* 1,153.8* 1,144.9* 1,140.9 1,130.0* 1,129.8 1,134.4 20 Insurance 2,320.7 2,473.7 2,708.0 2,874.9* 2,737.2* 2,789.3* 2,854.5* 2,874.9* 2,943.9* 2,992.3 3,057.5 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 1,378.6 22 Other insurance companies 317.5 344.0 376.3 389.0 383.5 387.6 386.9 389.0 391.2 393.8 396.0 23 Private pension funds 590.2 607.4 692.7 719.0* 684.7* 703.3* 728.2* 719.0* 748.5* 751.3 774.3 24 State and local government retirement funds... 390.9 405.9 439.4 484.9r 446.6* 454.8* 474.6* 484.9* 486.9* 497.7 508.7 25 Finance n.e.c 1,695.9 1,949.1 2,191.5 2,441.2* 2,269.7* 2,312.3* 2,415.9* 2,441.2* 2,493.8* 2,585.7 2,664.4 26 Finance companies 468.6 497.0 484.9 486.6 479.5 480.5 477.8 486.6 473.7 473.5 472.0 27 Mortgage companies 22.6 14.6 25.9 26.1 31.7 22.1 29.3 26.1 20.9 28.8 28.3 28 Mutual funds 307.2 360.2 450.5 574.2 478.8 510.2 550.2 574.2 611.4 659.9 703.6 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 291.8 372.7 402.7 404.1 424.0 412.0 408.2 404.1 404.5 403.9 400.6 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 142.9 177.9 226.9 267.1 226.3 244.6 289.6 267.1 287.0 303.6 320.9 33 Asset-backed securities issuers (ABSs) 219.3 269.1 318.1 379.9* 334.5* 347.1* 365.1* 379.9* 390.4* 402.8 423.1 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 15,002.7R 14,337.4* 14,547.1* 14,782.8* 15,002.7* 15,123.8* 15,330.1 15,589.3 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 354.3 380.0 405.7 433.0* 412.1* 416.0* 426.4* 433.0* 446.4* 456.2 471.1 39 Pension fund reserves 3,356.1 3,400.3 4,056.5 4,357.8* 4,052.5* 4,115.0* 4,250.0* 4,357.8* 4,492.2* 4,555.3 4,701.7 40 Interbank claims 32.4 64.0 65.2 113.1* 63.0 68.5 100.7* 113.1* 109.5* 116.8 127.7 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 4,887.8* 4,930.0 4,926.1 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 2,262.0* 2,242.2 2,223.1 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 428.1 498.4 539.6 543.6 572.0 556.9 552.9 543.6 556.6 549.8 547.9 46 Security repurchase agreements 396.5 372.3 355.8 389.4 367.0 393.5 417.6 389.4 443.5 448.4 470.9 47 Foreign deposits 142.8 159.4 151.3 138.8 144.7 133.9 144.6 138.8 135.3* 130.5 121.9 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 1,342.4 49 Security credit 133.9 137.4 188.9 217.3 194.6 193.3 214.5 217.3 225.1 234.7 254.5 50 Trade debt 904.2 936.4 926.7 978.1* 934.0* 945.5* 965.1* 978.1* 975.8* 984.5 1,002.8 51 Taxes payable 81.8 77.4 68.9 76.8* 73.2* 70.7 74.6* 76.8* 81.0* 77.2 80.7 52 Investment in bank personal trusts 503.2 509.9 5%.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 3,053.7* 2,900.1* 2,958.0* 3,026.7* 3,053.7* 3,074.7* 3,153.0 3,193.8 54 Total liabilities 26,015.5 27,300.7 29,143.0 30,862.1* 29,397.8* 29,802.8* 30,408.2* 30,862.1* 31,255.0* 31,777.7 32,413.9 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 2,274.5* 2,355.6* 2,340.3* 2,320.3* 2,274.5* 2,259.2* 2,260.3 2,252.2 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 -128.5* -146.7* -155.6* -149.6* -128.5* -138.1* -148.1 -149.3 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 -9.3* -1.8 -4.0 -5.0* -9.3* -5.6* -5.7 -7.8 63 Security repurchase agreements 13.7 -17.7 -12.5 18.6 -4.8 19.6 33.1 18.6 71.8 79.5 101.6 64 Taxes payable 20.6 17.8 15.5 22.4* 7.3 13.1 18.2* 22.4* 12.2* 19.4 20.3 65 Miscellaneous -210.7 -213.4 -254.6 -254.9* -282.7* -285.0* -273.2* -254.9* -300.7* -294.5 -329.7 66 Total identified to sectors as assets 32,685.1 33,658.6 36,749.2 39,014.1* 37,104.1* 37,385.4* 38,101.2* 39,014.1* 39,590.2* 40,121.3 41,039.1 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables L.6 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 1994 MMeeaassuurree 11999911 11999922rr 11999933 June July Aug. Sept.* Oct.* Nov.* Dec.* Jan. Feb. 1 Industrial production1 104.1 106.5 110.9* 110.4* 110.9* ni.r 111.3 111.9 112.8 114.0 114.6 115.1 Market groupings ? Products, total 103.2r 105.7r 110.2 109.6* 110.4* 110.4* 110.6 111.2 112.1 111133..00 111133..66 111144..00 3 Final, total 105.3 108.0* 112.7* 112.1* 112.8* 112.7* 113.1 113.8 114.6 115.5 116.1 116.8 4 Consumer goods 102.8 105.7r 108.7* 108.1* 108.9* 108.6* 108.5 109.2 109.7 110.1 110.5 111.0 5 Equipment 108.9 111,2r 118.5* 118.0* 118.5* 118.6* 119.8 120.4 121.8 123.3 124.1 125.2 6 96.8r 99.0* 102.6* 101.8* 102.9* 103.3* 103.0 103.5 104.3 105.4 105.9 105.5 7 Materials 105.4r 107.7* 111.9* 111.7* 111.7* 112.1* 112.2 112.8 113.9 115.5 116.1 116.7 Industry groupings 8 Manufacturing 103.7 106.8* 111.7* 111.2* 111.6 111.8* 111122..11 111122..99 111144..00 111155..44 111155..66 111166..33 9 Capacity utilization, manufacturing (percent)2 77.8 78.6* 80.6* 80.1* 80.3* 80.3* 8800..44 8800..88 8811..55 8822..33 8822..33 8822..66 10 Construction contracts3 89.7 97.7 99.4* 104.0 98.0 99.0 101.0 103.0 105.0 102.0 103.0 107.0 11 Nonagricultural employment, total4 106.2 106.4 108.1 108.0 108.2 108.2 108.4 108.5 108.8 109.0 109.0 109.2 1? Goods-producing, total 96.6 94.9 93.1 93.0 93.0 92.8 92.8 93.0 93.2 93.3 93.3 93.2 n Manufacturing, total 97.1 95.8 93.7 93.5 93.5 93.3 93.2 93.2 93.4 93.4 93.5 93.6 14 Manufacturing, production workers ... 96.0* 94.5* 93.7 93.5 93.5 93.2 93.2 93.3 93.6 93.7 94.0 94.2 15 Service-producing 109.4r 110.5* 112.8 112.8 113.1 113.1 113.4 113.5 113.7 114.0 114.0 114.3 16 Personal income, total 127.6 135.3 141.7 141.3 141.1 142.9 143.1 144.2 145.0 146.0 145.6 n.a. 17 Wages and salary disbursements 124.5 131.5 136.2 136.5 137.2 138.2 138.0 138.8 139.2 139.8 141.3 n.a. 18 Manufacturing 113.7 117.8 117.8 118.0 118.2 118.6 119.1 119.1 119.9 120.7 120.7 n.a. 19 Disposable personal income 128.6 136.8 143.1 142.6 142.3 144.1 144.4 145.5 146.4 147.3 146.6 n.a. 20 Retail sales 121. 1* 126.9* 135.2* 134.4* 135.0* 136.0* 136.0 138.7 139.6 141.1 139.1 141.2 Prices7 71 Consumer (1982-84=100) 136.2 140.3 144.5 144.4 144.4 144.8 145.1 145.7 145.8 145.8 114466..22 114466..77 22 Producer finished goods (1982=100) 121.7 123.2 124.7 125.5 125.3 124.2 123.8 124.6 124.4 124.1 124.4 124.8 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* 1994 CCaatteeggoorryy 11999911** 11999922** 11999933** July Aug. Sept. Oct. Nov. Dec. Jan. Feb. HOUSEHOLD SURVEY DATA1 1 Civilian labor force1 125,303 126,982 128,040 128,102 128,334 128,108 128,580 128,662 128,898 130,667 130,776 ? Nonagricultural industries3 114,644 114,391 116,232 116,327 116,687 116,475 116,920 117,218 117,565 118,639 118,867 3 Agriculture 3,233 3,207 3,074 3,043 3,005 3,093 3,021 3,114 3,096 3,331 3,391 Unemployment 4 Number 8,426 9,384 8,734 8,732 8,642 8,540 8,639 8,330 88,,223377 88,,669966 88,,551188 5 Rate (percent of civilian labor force) 6.7 7.4 6.8 6.8 6.7 6.7 6.7 6.5 6.4 6.7 6.5 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 108,256 108,519 110,171 110,338 110,305 110,502 110,664 110,880 111,110 111,108 111,325 7 Manufacturing 18,455 18,192 17,804 17,760 17,718 17,698 17,709 17,735 17,738 17,768 17,780 8 689 631 599 595 592 596 596 595 605 602 602 9 Contract construction 4,650 4,471 4,571 4,593 4,593 4,592 4,629 4,664 4,665 4,645 4,623 in Transportation and public utilities 5,762 5,709 5,710 5,709 5,690 5,692 5,693 5,700 5,697 5,705 5,717 II 25,365 25,391 25,849 25,916 25,902 25,953 25,968 25,982 26,082 26,097 26,169 i? 6,646 6,571 6,605 6,604 6,602 6,616 6,632 6,651 6,660 6,666 6,681 n 28,336 29,053 30,193 30,320 30,381 30,433 30,534 30,649 30,709 30,688 30,809 14 Government 18,402 18,653 18,841 18,841 18,827 18,922 18,903 18,904 18,954 18,937 18,944 1. Beginning January 1994, reflects redesign of current population survey and 3. Includes all full- and part-time employees who worked during, or received population controls from the 1990 census. pay for, the pay period that includes the twelfth day of the month; excludes 2. Persons sixteen years of age and older, including Resident Armed Forces. proprietors, self-employed persons, household and unpaid family workers, and Monthly figures are based on sample data collected during the calendar week that members of the armed forces. Data are adjusted to the March 1992 benchmark, contains the twelfth day; annual data are averages of monthly figures. By and only seasonally adjusted data are available at this time. definition, seasonality does not exist in population figures. SOURCE. Based on data from U.S. Department of Labor, Employment and 2. Includes self-employed, unpaid family, and domestic service workers. Earnings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • May 1994 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1993r 1993r 1993r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent)2 1 Total industry 109.7 110.3 111.1 112.9 135.3 135.9 136.5 137.2 81.1 81.2 81.4 82.3 2 Manufacturing 110.3 111.2 111.8 114.1 137.7 138.4 139.2 140.0 80.1 80.3 80.3 81.5 3 Primary processing3 106.1 107.0 107.7 109.9 127.6 127.9 128.3 128.6 83.1 83.6 83.9 85.5 4 Advanced processing 112.3 113.2 113.8 116.1 142.5 143.4 144.4 145.4 78.8 78.9 78.8 79.9 5 Durable goods 112.0 113.2 114.2 118.1 143.5 144.5 145.4 146.3 78.1 78.4 78.5 80.7 6 Lumber and products 99.8 98.0 100.8 105.1 114.6 114.8 115.0 115.2 87.1 85.4 87.6 91.2 7 Primary metals 105.1 105.2 106.7 109.6 123.7 123.3 123.0 122.6 85.0 85.3 86.8 89.4 8 Iron and steel 109.3 109.7 112.3 115.5 128.0 127.4 126.9 126.3 85.4 86.1 88.6 91.5 9 Nonferrous 99.4 99.0 98.9 101.4 117.7 117.6 117.6 117.6 84.4 84.1 84.1 86.2 10 Nonelectrical machinery 134.8 141.7 147.2 152.7 170.6 173.1 175.7 178.2 79.0 81.8 83.8 85.7 11 Electrical machinery 122.8 125.9 129.7 132.6 151.8 153.8 155.7 157.7 80.9 81.9 83.2 84.0 12 Motor vehicles and parts 121.7 118.1 112.0 131.7 152.1 153.4 154.8 156.1 80.0 76.9 72.3 84.4 13 Aerospace and miscellaneous transportation equipment . 92.7 90.3 87.4 85.3 134.1 133.7 133.2 132.8 69.1 67.6 65.6 64.2 14 Nondurable goods 108.1 108.7 108.9 109.1 130.5 131.0 131.6 132.1 82.8 83.0 82.8 82.6 15 Textile mill products 107.2 108.4 108.0 107.6 118.3 118.8 119.4 119.9 90.6 91.3 90.5 89.7 16 Paper and products 110.5 113.2 111.7 114.3 123.8 124.3 124.8 125.3 89.2 91.1 89.6 91.3 17 Chemicals and products 116.2 117.7 118.6 118.6 144.3 145.1 145.9 146.8 80.5 81.2 81.2 80.8 18 Plastics materials 111.5 112.8 111.5 113.9 129.2 130.1 131.1 132.0 86.3 86.7 85.1 86.3 19 Petroleum products 103.9 104.0 104.0 107.6 115.9 115.8 115.7 115.6 89.6 89.8 89.9 93.1 20 Mining 97.4 97.5 96.8 97.4 111.7 111.4 111.1 110.8 87.2 87.5 87.1 87.9 21 Utilities 116.0 114.1 117.5 115.8 133.3 133.6 134.0 134.3 87.0 85.4 87.8 86.2 22 Electric 115.2 114.8 118.0 114.8 130.4 130.8 131.2 131.7 88.4 87.7 89.9 87.2 1973 1975 Previous cycle2 Latest cycle3 1993 1993 1994 High Low High Low High Low Feb. Sept. Oct. Nov.r Dec/ Jan/ Feb." Capacity utilization rate (percent)2 1 Total industry 99.0 82.7 87.3 71.8 84.8 78.3 81.2 81.4r 81.7r 82.2 83.0 83.3 83.4 2 Manufacturing 99.0 82.7 87.3 70.0 85.1 76.6 80.2 80.4r 80.8r 81.5 82.3 82.3 82.6 3 Primary processing3 99.0 82.7 89.7 66.8 89.1 77.9 83.4 83.9* 84.4r 85.5 86.4 86.0 86.1 4 Advanced processing 99.0 82.7 86.3 71.4 83.3 76.1 78.8 78.9* 79.3r 79.8 80.5 80.7 81.1 5 Durable goods 99.0 82.7 86.9 65.0 83.9 73.8 78.1 79.01 79.6r 80.6 81.9 82.1 82.6 6 Lumber and products 99.0 82.7 87.6 60.9 93.3 76.8 88.4 88.4r 90.9r 91.0 91.7 91.4 90.4 7 Primary metals 99.0 82.7 102.4 46.8 92.9 74.3 86.6 87.3r 86.5r 89.5 92.1 90.6 91.0 8 Iron and steel 99.0 82.7 110.4 38.3 95.7 72.3 87.0 88.7r 89.6r 90.6 94.3 91.0 91.7 9 Nonferrous 99.0 82.7 90.5 62.2 88.9 75.9 86.1 85.3r 81.8r 88.0 88.8 90.0 89.8 10 Nonelectrical machinery 99.0 82.7 92.1 64.9 83.7 73.0 78.6 84. lr 84.7r 85.3 87.0 87.5 87.9 11 Electrical machinery 99.0 82.7 89.4 71.1 84.9 76.8 81.0 83.7r 83.6r 83.7 84.7 84.9 85.1 12 Motor vehicles and parts .... 99.0 82.7 93.0 44.5 84.5 57.9 80.1 74.2r 79.7r 84.8 88.5 90.0 94.5 13 Aerospace and miscellaneous transportation equipment. 99.0 82.7 81.1 66.9 88.3 78.1 69.4 65. lr 64.3r 64.5 63.9 63.0 62.4 14 Nondurable goods 99.0 82.7 87.0 76.9 86.8 80.4 82.9 82.4r 82.5r 82.6 82.8 82.6 82.6 15 Textile mill products 99.0 82.7 91.7 73.8 92.1 78.7 90.6 89.2r 90.0* 90.0 89.1 89.3 88.6 16 Paper and products 99.0 82.7 94.2 82.0 94.9 86.0 89.3 89.2r 90. lr 91.4 92.3 90.5 92.3 17 Chemicals and products 99.0 82.7 85.1 70.1 85.9 78.5 80.0 80.9* 80.4 81.0 81.1 81.3 80.8 18 Plastics materials 99.0 82.7 90.9 63.4 97.0 75.5 85.6 84.6r 84.4r 85.2 89.2 19 Petroleum products 99.0 82.7 89.5 68.2 88.5 84.2 89.8 91.0* 93.6 93.3 92.3 92.5 92.6 20 Mining 99.0 82.7 96.6 80.6 87.0 86.8 86.9 87.7r 88.4 87.5 87.8 88.6 89.4 21 Utilities 99.0 82.7 88.3 76.2 92.6 83.4 88.1 86.7 85.6r 86.4 86.7 89.7 88.4 22 Electric 99.0 82.7 88.3 78.7 94.8 87.4 89.4 88. r 86.5r 87.5 87.6 90.3 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- aavvgg.. tion Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r OOcctt..rr NNoovv..rr Dec.p 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 3 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 5 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 98.8 9 Trucks, consumer .6 157.3 154.6 169.1 156.9 153.1 155.9 150.9 142.3 138.6 146.7 153.9 166.4 176.0 188.0 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 1? 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 H 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 70 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 73 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 ?4 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 ">7 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 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 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 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 114400..66 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 112233..00 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 • May 1994 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued „ 1987 1992 1993 Uroup 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 1.5 109.4 103.9 105.2 106.0 107.3 108.8 108.4 109.5 111.1 111.1 111.3 111.4 111.5 110.9 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 94.9 101.6 101.6 71 Fabricated metal products 34 5.4 100.9 97.8 99.8 99.7 100.3 101.4 100.6 100.1 101.2 101.0 100.9 101.6 102.7 103.3 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 6.9 131.7 124.8 125.8 127.1 128.5 129.0 129.7 130.1 132.3 133.5 135.2 136.0 137.2 138.7 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 4.8 120.1 116.2 120.9 120.7 120.1 120.4 118.1 114.3 110.1 110.0 115.0 124.1 132.3 138.8 77 Autos and light trucks 2.2 114.9 114.4 118.2 117.8 116.9 117.5 113.1 108.2 102.8 104.0 104.8 116.3 127.3 133.5 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 1.3 104.8 103.4 103.2 104.7 104.7 104.3 103.6 103.9 102.5 102.4 104.3 107.9 108.2 107.1 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 10 .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 49L3PT 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 79.5 111.4 108.8 109.3 109.8 110.2 110.8 110.9 111.1 111.7 112.0 112.1 112.6 113.4 113.8 101 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 1994 IItteemm 11999911 11999922 11999933 Apr. May June July Aug. Sept. Oct." Nov." Dec. Jan. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 949 1,095 1,206 1,101 1,121 1,115 1,162 1,242 1,271 1,304 1,374 1,476 1,358 2 One-family 754 911 998 925 919 925 977 1,015 1,047 1,097 1,145 1,198 1,115 3 Two-or-more-family 195 184 208 176 202 190 185 227 224 207 229 278 243 4 Started 1,014 1,200 1,288 1,232R 1,241" 1,238" 1,245" 1,319" 1,359" 1,409 1,406 1,612 1,258 5 One-family 840 1,030 1,126 1,082R 1,100" 1,067" 1,076" 1,178" 1,160" 1,231 1,248 1,383 1,110 6 Two-or-more-family 174 169 162 150" 141 171" 169" 141" 199" 178 158 229 148 7 Under construction at end of period1.. 606 612 681 637 646" 649 658 662 678 686 699 713 722 8 One-family 434 473 544 506 515 518" 526" 534 544" 551 564 575 582 9 Two-or-more-family 173 140 137 131 131" 131" 132" 128 134" 135 135 138 140 10 Completed 1,091 1,158 1,193 l,212R 1,137" 1,168" 1,097" 1,248" 1,172" 1,248 1,248 1,291 1,193 11 One-family 838 964 1,040 l,064r 992" 997" 955" 1,068" 1,041" 1,081 1,107 1,141 1,057 12 Two-or-more-family 253 194 153 148r 145" 171 142" 180" 131" 167 141 150 136 13 Mobile homes shipped 171 210 254 240r 235" 238" 246" 247" 254" 260 283 308 316 Merchant builder activity in one-family units 14 Number sold 507 610 666 685r 635" 641 647 645" 738" 723 766 822 637 15 Number for sale at end of period1 ... 284 266 296 271 273" 274 277" 286 288" 291 294 296 300 Price of units sold (thousands of dollars) 16 Median 120.0 121.3 126.1 127.0 129.9 124.5 123.9 126.6 129.4 125.0 130.0 125.0 112266..55 17 Average 147.0 144.9 147.6 148.4 152.3 145.7 143.4 150.6 150.1" 146.9 152.5 145.8 154.4 EXISTING UNITS (one-family) 18 Number sold 3,219 3,520 3,800 3,460" 3,610" 3,700" 3,850" 3,860" 3,990" 4,030 4,120 4,350 4,250 Price of units sold (thousands of dollars)2 19 Median 99.7 103.6 106.5 105.5r 106.5 109.2" 108.4" 108.8" 107.2 106.6 107.1 107.4 110077..99 20 Average 127.4 130.8 133.1 132.7" 132.6" 137.3" 135.8" 135.4" 133.6" 133.0 133.1 133.7 134.6 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 403,439 436,043 470,420 449,054 453,256 460,680 466,593 468,547 477,125 489,660 499,765 511,678 505,486 77 Private 293,536 317,256 342,953 328,150 332,231 335,028 337,909 341,351 345,572 354,102 364,962 372,138 369,023 73 Residential 157,837 187,820 208,092 197,317 198,380 200,496 204,631 206,594 209,520 215,198 223,183 229,645 230,664 74 Nonresidential 135,699 129,436 134,861 130,833 133,851 134,532 133,278 134,757 136,052 138,904 141,779 142,493 138,359 25 Industrial buildings 22,281 20,720 20,654 19,458 20,091 19,316 19,799 20,126 21,346 21,311 22,216 21,974 22,180 76 Commercial buildings 48,482 41,523 43,145 42,426 42,428 42,723 41,524 42,342 42,225 44,405 46,008 48,157 46,158 27 Other buildings 20,797 21,494 23,405 22,568 23,293 23,849 23,817 25,047 24,487 24,737 24,036 24,243 23,820 28 Public utilities and other 44,139 45,699 47,657 46,381 48,039 48,644 48,138 47,242 47,994 48,451 49,519 48,119 46,201 79 Public 109,900 118,784 127,469 120,904 121,025 125,652 128,684 127,196 131,553 135,558 134,803 139,540 136,463 30 Military 1,837 2,502 2,493 2,533 2,393 2,234 2,493 2,583 2,492 2,550 2,369 2,468 2,972 31 Highway 32,026 34,929 37,299 34,534 34,320 37,649 37,376 35,148 39,147 40,551 41,539 41,458 42,817 32 Conservation and development... 4,861 5,918 6,126 5,875 6,019 6,103 5,661 5,620 6,307 5,940 6,362 6,360 6,830 33 Other 71,176 75,435 81,551 77,962 78,293 79,666 83,154 83,845 83,607 86,517 84,533 89,254 83,844 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 • May 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 1993r 1993 19941 lll FFF eeevvv eeebbb eee ... lll ,,, 11999933 11999944 111999999444111 FFeebb.. FFeebb.. Mar. June Sept. Dec. Oct. Nov. Dec. Jan. Feb. CONSUMER PRICES2 (1982-84=100) 1 All items 3.2 2.5 3.1 2.5 2.0 3.3 .3R .3' .2 .0 .3 146.7 2 Food 1.7 2.1 2.0 2.3 2.6 4.9 .5r .2r .5 -.1 -.3 142.9 3 Energy items 3.2 -.2 1.2 -3.8 -4.2 1.2 1.9 — .9* -,7r -.8 1.6 102.0 4 All items less food and energy 3.6 2.8 3.8 3.2 2.1 3.4 .3 .4* ,2r .1 .3 155.0 5 Commodities 2.8 .8 3.0 .9 .0 2.4 ,2r .3r .R .0 -.1 135.8 6 Services 4.0 3.7 4.1 4.1 3.5 3.7 .2r .4r ,3r .2 .4 166.0 PRODUCER PRICES (1982=100) 7 Finished goods 2.0 .2 3.9 .0 -2.5 -.3 -,lr ,lr -.1 .2 .5 124.8 8 Consumer foods .9 1.8 .0 1.3 3.2 5.2 -,2r .9 .6r -.3 -.4 126.7 9 Consumer energy 3.5 -2.6 14.1 -5.4 -7.4 -14.6 ,8r -2.R -2.6r .8 2.8 74.9 10 Other consumer goods 2.2 -.5 2.9 .6 -6.4 1.2 -,2r ,4r ,lr .3 .2 138.7 11 Capital equipment 1.9 1.8 4.1 .6 2.2 .9 -.4 .3r .3 .6 .1 133.4 Intermediate materials 12 Excluding foods and feeds 2.0 .6 4.2 .3 -1.0 -.7 .R .0* -.3 .2 .4 116.6 13 Excluding energy 1.7 1.1 4.0 .0 1.0 1.6 .0 .2r .2 .2 .0 124.8 Crude materials 14 Foods .0 6.4 1.9 -3.0 13.1 15.5 — 1.4r 4.R L.TF" -.9 1.2 112.8 15 Energy 2.6 -13.7 -10.1 17.5 -28.1 -26.8 6.6r -4.8r -8.9 3.8 -6.4 66.9 16 Other 9.7 10.2 22.1 11.2 -4.5 19.6 1.3r .9 2.3r 1.6 2.0 151.4 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 11999911 11999922 11999933 Q4 Ql Q2 Q3 Q4 GROSS DOMESTIC PRODUCT 1 5,722.9 6,038.5 6,379.4 6,194.4 6,261.6 6,327.6 6,395.9 6,532.4 By source 7 Personal consumption expenditures 3,906.4 4,139.9 4,391.9 4,256.2 4,296.2 4,359.9 4,419.1 44,,449922..55 3 Durable goods 457.8 497.3 537.9 516.6 515.3 531.6 541.9 562.6 4 Nondurable goods 1,257.9 1,300.9 1,351.0 1,331.7 1,335.3 1,344.8 1,352.4 1,371.5 5 Services 2,190.7 2,341.6 2,503.0 2,407.9 2,445.5 2,483.4 2,524.8 2,558.4 6 Gross private domestic investment 736.9 7%. 5 892.8 833.3 874.1 874.1 884.0 939.0 7 Fixed investment 745.5 789.1 875.8 821.3 839.5 861.0 876.3 926.4 8 Nonresidential 555.9 565.5 623.4 579.5 594.7 619.1 624.9 655.0 9 Structures 182.6 172.6 178.9 171.1 172.4 177.6 179.1 186.5 10 Producers' durable equipment 373.3 392.9 444.5 408.3 422.2 441.6 445.8 468.5 11 Residential structures 189.6 223.6 252.4 241.8 244.9 241.9 251.3 271.4 17 Change in business inventories -8.6 7.3 17.0 12.0 34.6 13.1 7.7 12.6 13 Nonfarm -8.6 2.3 22.5 9.5 33.0 16.8 22.6 17.6 14 Net exports of goods and services -19.6 -29.6 -63.2 -38.8 -48.3 -65.1 -71.9 -67.6 15 601.5 640.5 661.7 654.7 651.3 660.0 653.2 682.2 16 Imports 621.1 670.1 724.9 693.5 699.6 725.0 725.1 749.7 17 Government purchases of goods and services 1,099.3 1,131.8 1,157.9 1,143.8 1,139.7 1,158.6 1,164.8 1,168.5 18 Federal 445.9 448.8 443.6 452.4 442.7 447.5 443.6 440.5 19 State and local 653.4 683.0 714.3 691.4 697.0 711.1 721.2 728.0 By major type of product ?n Final sales, total 5,731.6 6,031.2 6,362.4 6,182.5 6,227.1 66,,331144..55 66,,338888..22 66,,551199..88 ?i Goods 2,227.0 2,305.5 2,407.3 2,365.6 2,362.9 2,395.0 2,401.7 2,469.4 77 Durable 934.3 975.8 1,036.8 1,008.3 1,003.5 1,037.8 1,032.9 1,073.1 73 Nondurable 1,292.8 1,329.6 1,370.4 1,357.3 1,359.3 1,357.1 1,368.8 1,396.3 74 Services 3,032.7 3,221.1 3,409.6 3,296.1 3,341.8 3,388.1 3,437.8 3,470.5 25 Structures 471.9 504.7 545.6 520.8 522.4 531.5 548.7 579.9 76 Change in business inventories -8.6 7.3 17.0 12.0 34.6 13.1 7.7 12.6 27 Durable goods -12.9 2.1 11.9 -1.2 15.0 2.7 14.8 15.0 28 Nondurable goods 4.3 5.3 5.1 13.2 19.5 10.4 -7.2 -2.4 MEMO 29 Total GDP in 1987 dollars 4,861.4 4,986.3 5,137.7 5,068.3 5,078.2 5,102.1 5,138.3 55,,223322..11 NATIONAL INCOME 30 4,598.3 4,836.6 n.a. 4,975.8 5,038.9 5,104.0 5,143.2 n.a. 31 Compensation of employees 3,402.4 3,582.0 3,772.0 3,658.6 3,705.1 3,750.6 3,793.9 3,838.4 3? Wages and salaries 2,814.9 2,953.1 3,100.3 3,015.8 3,054.3 3,082.7 3,115.4 3,148.8 33 Government and government enterprises 545.3 567.5 589.7 574.2 584.1 586.3 592.8 595.5 34 Other 2,269.6 2,385.6 2,510.6 2,441.6 2,470.2 2,496.3 2,522.6 2,553.4 35 Supplement to wages and salaries 587.5 629.0 671.7 642.8 650.7 668.0 678.5 689.6 36 Employer contributions for social insurance 290.6 306.3 321.0 311.3 312.2 321.4 323.8 326.6 37 Other labor income 296.9 322.7 350.7 331.5 338.5 346.6 354.7 362.9 38 proprietors' income1 376.4 414.3 443.2 431.2 444.1 439.4 422.5 467.0 39 Business and professional1 339.5 370.6 397.3 383.6 388.4 392.4 397.6 410.5 40 Farm1 36.8 43.7 46.0 47.6 55.7 47.0 24.8 56.4 41 Rental income of persons2 -12.8 -8.9 12.8 -1.2 7.5 12.7 13.7 17.4 42 Corporate profits1 369.5 407.2 n.a. 439.5 432.1 458.1 468.5 n.a. 43 Profits before tax3 362.3 395.4 n.a. 409.9 419.8 445.6 443.8 n.a. 44 Inventory valuation adjustment 4.9 -5.3 -7.2 4.9 -12.7 -12.2 1.0 -4.8 45 Capital consumption adjustment 2.2 17.1 24.3 24.7 25.1 24.7 23.8 23.9 46 Net interest 462.8 442.0 n.a. 447.7 450.1 443.2 444.6 n.a. 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • May 1994 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1992 1993 AAccccoouunntt 11999911 11999922 11999933 Q4 Ql Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total personal income 4,850.9 5,144.9 5,388.9 5,328.3 5,254.7 5,373.2 5,412.7 5,515.1 2 Wage and salary disbursements 2,815.0 2,973.1 3,080.3 3,095.8 2,974.3 3,082.7 3,115.4 3,148.8 3 Commodity-producing industries 738.1 756.5 763.6 783.3 740.7 765.1 769.4 779.3 4 Manufacturing 557.2 577.6 577.3 602.0 559.7 580.3 581.5 587.7 5 Distributive industries 648.0 682.0 706.5 709.9 682.9 709.1 714.4 719.4 6 Service industries 883.5 967.0 1,020.6 1,028.4 966.6 1,022.2 1,038.8 1,054.7 7 Government and government enterprises 545.4 567.5 589.7 574.2 584.1 586.3 592.8 595.5 296.9 322.7 350.7 331.5 338.5 346.6 354.7 362.9 9 Proprietors' income1 376.4 414.3 443.2 431.2 444.1 439.4 422.5 467.0 10 Business and professional 339.5 370.6 397.3 383.6 388.4 392.4 397.6 410.5 11 Farm1 36.8 43.7 46.0 47.6 55.7 47.0 24.8 56.4 12 Rental income of persons -12.8 -8.9 12.8 -1.2 7.5 12.7 13.7 17.4 127.9 140.4 158.3 152.3 157.0 157.8 159.0 159.4 14 Personal interest income 715.6 694.3 695.8 694.5 695.4 693.1 695.7 699.2 15 Transfer payments 769.9 858.4 912.0 877.4 894.4 905.5 918.5 929.5 16 Old-age survivors, disability, and health insurance benefits ... 382.3 413.9 438.4 420.8 433.1 435.0 439.4 446.1 17 LESS: Personal contributions for social insurance 237.8 249.3 264.3 253.3 256.6 264.5 266.8 269.1 18 EQUALS: Personal income 4,850.9 5,144.9 5,388.9 5,328.3 5,254.7 5,373.2 5,412.7 5,515.1 19 LESS: Personal tax and nontax payments 620.4 644.8 681.6 670.7 657.1 681.0 689.0 699.1 20 EQUALS: Disposable personal income 4,230.5 4,500.2 4,707.4 4,657.6 4,597.5 4,692.2 4,723.7 4,816.0 21 LESS: Personal outlays 4,029.0 4,261.5 4,517.0 4,377.9 4,419.7 4,483.6 4,544.0 4,620.6 22 EQUALS: Personal saving 201.5 238.7 190.4 279.7 177.9 208.7 179.7 195.4 MEMO Per capita (1987 dollars) 19,237.9 19,518.0 19,894.0 19,754.1 19,744.4 19,785.4 19,868.8 2200,,117755..11 24 Personal consumption expenditures 12,895.2 13,080.9 13,373.3 13,240.9 13,234.2 13,311.6 13,416.2 13,529.3 25 Disposable personal income 13,965.0 14,219.0 14,329.0 14,490.0 14,163.0 14,326.0 14,341.0 14,504.0 26 Saving rate (percent) 4.8 5.3 4.0 6.0 3.9 4.4 3.8 4.1 GROSS SAVING 27 Gross saving 733.7 717.8 n.a. 718.8 762.0 766.7 774.3 n.a. 28 Gross private saving 929.9 986.9 n.a. 969.4 1,024.8 988.3 988.7 n.a. 29 Personal saving 201.5 238.7 190.4 279.7 177.9 208.7 179.7 195.4 30 Undistributed corporate profits1 102.3 110.4 n.a. 121.7 103.7 116.3 129.3 n.a. 31 Corporate inventory valuation adjustment 4.9 -5.3 -7.2 4.9 -12.7 -12.2 1.0 -4.8 Capital consumption allowances 32 Corporate 383.2 396.6 440088..88 339966..55 440022..22 440055..22 441144..00 441133..99 33 Noncorporate 242.8 261.3 262.3 251.5 261.0 258.1 265.7 264.5 34 Government surplus, or deficit (-), national income and -196.2 -269.1 -224.7 -250.6 -262.8 -221.5 --221144..44 n.a. 35 Federal -203.4 -276.3 -226.4 -264.2 -263.5 -222.6 -212.7 n.a. 36 State and local 7.3 7.2 1.7 13.5 .8 1.1 -1.7 n.a. 37 Gross investment 743.3 741.4 n.a. 750.9 796.5 778.7 787.6 n.a. 38 Gross private domestic 736.9 796.5 892.8 833.3 874.1 874.1 884.0 939.0 39 Net foreign 6.4 -55.1 n.a. -82.4 -77.6 -95.4 -96.4 n.a. 40 Statistical discrepancy 9.6 23.6 n.a. 32.1 34.4 12.0 13.3 n.a. 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1992 1993 IItteemm ccrreeddiittss oorr ddeebbiittss 11999900 11999911 11999922 Q3 Q4 Ql Q2 Q3P 1 Balance on current account -91,861 -8,324 -66,400 -17,775 -23,687 -22,308 -27,172 -27,986 ? 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 553355 --227755 --8866 12 Change in U.S. official reserve assets (increase, -) -2,158 5,763 3,901 1,952 1,542 -983 822 -544 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 claims 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 70 U.S. purchases of foreign securities, net -28,765 -44,740 -47,961 -13,787 -17,405 -26,889 -24,098 ——4455,,229900 21 U.S. direct investments abroad, net -27,109 -29,113 -34,791 -2,028 -11,489 -8,302 -11,550 -5,588 V 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 73 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 7,5 Other U.S. government liabilities4 2,156 1,541 2,542 864 943 -395 396 1,322 26 Other U.S. liabilities reported by U.S. banks3 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 -688 -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 79 U.S. bank-reported liabilities 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 33,,999955 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 35 Discrepancy 30,820 -15,140 -12,218 2,123 15,280 8,948 14,133 5,495 36 Due to seasonal adjustment -6,754 1,222 5,814 681 -7,605 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 882222 --554444 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 1188,,332244 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 --33,,004433 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 • May 1994 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1993 1994 IItteemm 11999911 11999922 11999933 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Goods and services, balance -27,920 -39,727 -76,799 -6,891 -7,044 -8,183 -8,460 -7,455 -4,148 -6,298 2 Merchandise -73,802 -96,138 -132,478 -11,757 -11,647 -12,568 -12,644 -11,351 -8,748 -11,028 3 Services 45,882 56,411 55,679 4,866 4,603 4,385 4,184 3,8% 4,600 4,730 4 Goods and services, exports 581,197 619,848 643,558 52,399 52,731 53,660 54,957 54,735 57,250 54,488 5 Merchandise 416,937 440,138 456,766 36,577 37,224 38,134 39,371 39,451 41,469 38,734 6 Services 164,260 179,710 186,792 15,822 15,507 15,526 15,586 15,284 15,781 15,754 7 Goods and services, imports 609,117 659,575 720,358 59,290 59,775 61,843 63,417 62,190 61,398 60,786 8 Merchandise 490,739 536,276 589,244 48,334 48,871 50,702 52,015 50,802 50,217 49,762 9 Services 118,378 123,299 131,114 10,956 10,904 11,141 11,402 11,388 11,181 11,024 MEMO 10 Balance on merchandise trade, Census basis -66,723 -84,501 -115,738 -10,425 -10,047 -10,621 -10,897 -9,679 -7,367 -9,849 1. Data show monthly values consistent with quarterly figures in the U.S. SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and balance of payments accounts. Bureau of Economic Analysis. 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1993 Aug. Sept. Oct. 1 Total 83,316 77,719 71,323 75,231 75,835 74,550 74,042 73,442 74,243 2 Gold stock, including Exchange Stabilization Fund1 11,058 11,057 11,056 11,057 11,057 11,056 11,054 11,053 11,053 3 Special drawing rights2,3 10,989 11,240 8,503 9,133 9,203 9,038 9,091 9,039 9,070 4 Reserve position in International Monetary Fund2 9,076 9,488 11,759 12,118 12,101 11,908 11,827 11,818 11,906 5 Foreign currencies 52,193 45,934 40,005 42,923 43,474 42,548 42,070 41,532 42,214 1. Gold held "under earmark" at Federal Reserve Banks for foreign and 1981, five currencies have been used. U.S. SDR holdings and reserve positions in international accounts is not included in the gold stock of the United States; see the IMF also have been valued on this basis since July 1974. table 3.13, line 3. Gold stock is valued at $42.22 per fine troy ounce. 3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 2. Special drawing rights (SDRs) are valued according to a technique adopted of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972— by the International Monetary Fund (IMF) in July 1974. Values are based on a $710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million; weighted average of exchange rates for the currencies of member countries. From plus net transactions in SDRs. July 1974 through December 1980, sixteen currencies were used; since January 4. Valued at current market exchange rates. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1993 1994 AAsssseett 11999900 11999911 11999922 Aug. Sept. Oct. Nov. Dec.r Jan. Feb." 1 Deposits 369 968 205 357 501 390 5% 386 257 190 Held in custody 2 U.S. Treasury securities 278,499 281,107 314,481 356,671 358,860 358,975 373,864 379,394 388,065 393,238 3 Earmarked gold 13,387 13,303 13,686 12,686 12,562 12,464 12,381 12,327 12,302 12,238 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 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1993 1994 IItteemm 11999911 11999922 July Aug. Sept. Oct. Nov. Dec. Jan." 1 Total1 360,530 398,816 427,036r 436,%9* 445,693r 444,107 457,129* 468,825 477,525 By type 2 Liabilities reported by banks in the United States 38,396 54,967 67,461r 68,824r 70,220* 65,668 67,964* 69,633 77,363 3 U.S. Treasury bills and certificates3 92,692 104,5% 128,837 136,488 139,638 140,525 144,865 150,900 146,940 U.S. Treasury bonds and notes 4 Marketable 203,677 210,553 196,441 197,165 200,346 201,%5 208,188* 211,825 216,209 5 Nonmarketable4 4,858 4,532 5,488 5,508 5,542 5,579 5,615 5,652 5,689 6 U.S. securities other than U.S. Treasury securities 20,907 24,168 28,809 28,894 29,947 30,370 30,497 30,815 31,324 By area 1 Europe1 171,317 191,708 188,981 191,890 198,254 193,676 208,790* 209,229 215,611 8 Canada 7,460 7,920 88,,880088 8,075 8,260 9,441 8,657 9,505 10,084 9 Latin America and Caribbean 33,554 40,025 5533,,880022rr 55,340* 54,704* 54,275 50,410 57,950 57,761 10 Asia 139,465 152,276 169,080 174,901 177,164 178,889 182,437* 185,289 187,337 11 Africa 2,092 3,565 2,844 3,109 3,888 3,665 3,650 3,894 3,681 12 Other countries 6,640 3,320 3,519 3,652 3,421 4,159 3,183 2,956 3,049 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 1993 IItteemm 11999900 11999911 11999922 Mar. June Sept.* Dec. 1 Banks' liabilities 70,477 75,129 72,7% 80,999 74,697 81,045 77,415 2 Banks' claims 66,7% 73,195 62,799 64,057 55,161 59,116 60,221 3 Deposits 29,672 26,192 24,240 24,928 23,449 22,724 19,379 4 Other claims 37,124 47,003 38,559 39,129 31,712 36,392 40,842 5 Claims of banks' domestic customers 6,309 3,398 4,432 2,625 3,234 2,640 3,145 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

A56 International Statistics • May 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 1994 IItteemm 11999911 11999922 11999933 July Aug. Sept. Oct. Nov.* Dec. Jan.p HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 756,066 810,259 895,430 821,788 846,626 862,147 867,083r 887,138 895,430 875,814 2 Banks' own liabilities 575,374 606,444 620,393 589,281 606,529 614,608 608,979* 616,879 620,393 605,813 3 Demand deposits 20,321 21,828 21,572 21,818 21,503 25,445 22,035 25,462 21,572 23,525 4 Time deposits 159,649 160,385 174,786 151,293 152,967 153,607 158,845* 155,931 174,786 158,406 5 Other3 66,305 93,237 109,843 106,%2 116,406 113,063 129,438* 128,578 109,843 126,842 6 Own foreign offices4 329,099 330,994 314,192 309,208 315,653 322,493 298,661* 306,908 314,192 297,040 7 Banks' custodial liabilities5 180,692 203,815 275,037 232,507 240,097 247,539 258,104* 270,259 275,037 270,001 8 U.S. Treasury bills and certificates 110,734 127,644 176,430 153,359 116611,,882277 165,151 116644,,336655 116699,,772299 117766,,443300 117700,,669944 9 Other negotiable and readily transferable instruments 18,664 21,974 36,078 26,477 27,643 30,879 37,562* 38,555 36,078 37,329 10 Other 51,294 54,197 62,529 52,671 50,627 51,509 56,177* 61,975 62,529 61,978 11 Nonmonetary international and regional organizations8 8,981 9,350 10,836 9,587 12,365 11,409 10,984 12,955 10,836 10,834 12 Banks' own liabilities 6,827 6,951 5,540 6,397 8,671 7,995 6,780 9,081 5,540 6,820 13 Demand deposits 43 46 15 29 37 72 71 34 15 21 14 Time deposits 2,714 3,214 2,770 2,920 2,882 4,062 2,968 2,853 2,770 3,270 15 Other3 4,070 3,691 2,755 3,448 5,752 3,861 3,741 6,194 2,755 3,529 16 Banks' custodial liabilities5 2,154 2,399 5,2% 3,190 3,694 3,414 4,204 3,874 5,2% 4,014 17 U.S. Treasury bills and certificates6 1,730 1,908 4,275 22,,663355 33,,441188 33,,119999 33,,556666 33,,220011 44,,227755 33,,449977 18 Other negotiable and readily transferable instruments7 424 486 1,021 549 276 215 638 672 1,021 517 19 Other 0 5 0 6 0 0 0 1 0 0 20 Official institutions9 131,088 159,563 220,352 196,301 205,315 209,857 206,193 212,789 220,352 221,693 21 Banks' own liabilities 34,411 51,202 63,875 62,062 62,255 63,618 60,995 62,128 63,875 67,738 22 Demand deposits 2,626 1,302 1,601 1,583 1,321 1,951 2,121 2,089 1,601 1,668 23 Time deposits 16,504 17,939 21,443 18,935 18,110 20,552 14,885 16,938 21,443 19,849 24 Other3. 15,281 31,961 40,831 41,544 42,824 41,115 43,989 43,101 40,831 46,221 25 Banks' custodial liabilities5 96,677 108,361 156,477 134,239 143,060 146,239 145,198 150,661 156,477 153,955 26 U.S. Treasury bills and certificates6 92,692 104,5% 150,900 112288,,883377 113366,,448888 113399,,663388 114400,,552255 114444,,886655 115500,,990000 114466,,994400 27 Other negotiable and readily transferable instruments7 3,879 3,726 5,482 5,297 6,514 6,149 4,491 5,614 5,482 6,855 28 Other 106 39 95 105 58 452 182 182 95 160 29 Banks10 522,265 547,320 563,550 521,266 531,961 544,176 543,385* 555,5% 563,550 539,226 30 Banks' own liabilities 459,335 476,117 474,545 450,361 462,736 470,133 460,075* 468,566 474,545 451,950 31 Unaffiliated foreign banks 130,236 145,123 160,353 141,153 147,083 147,640 161,414* 161,658 160,353 154,910 32 Demand deposits 8,648 10,170 9,713 10,677 10,478 12,808 9,948 13,369 9,713 11,025 33 Time deposits 82,857 90,2% 105,204 84,567 85,%5 83,070 95,208* 91,462 105,204 87,670 34 Other3 38,731 44,657 45,436 45,909 50,640 51,762 56,258 56,827 45,436 56,215 35 Own foreign offices4 329,099 330,994 314,192 309,208 315,653 322,493 298,661* 306,908 314,192 297,040 36 Banks' custodial liabilities5 62,930 71,203 89,005 70,905 69,225 74,043 83,310* 87,030 89,005 87,276 37 U.S. Treasury bills and certificates6 7,471 11,087 10,707 1100,,662277 1111,,332277 1111,,779944 1100,,004466 1100,,553399 1100,,770077 99,,883322 38 Other negotiable and readily transferable instruments7 5,694 7,555 16,810 9,049 8,760 12,688 19,106* 17,124 16,810 17,136 39 Other 49,765 52,561 61,488 51,229 49,138 49,561 54,158* 59,367 61,488 60,308 40 Other foreigners 93,732 94,026 100,692 94,634 %,985 %,705 106,521* 105,798 100,692 104,061 41 Banks' own liabilities 74,801 72,174 76,433 70,461 72,867 72,862 81,129* 77,104 76,433 79,305 42 Demand deposits 9,004 10,310 10,243 9,529 9,667 10,614 9,895 9,970 10,243 10,811 43 Time deposits 57,574 48,936 45,369 44,871 46,010 45,923 45,784 44,678 45,369 47,617 44 Other3 8,223 12,928 20,821 16,061 17,190 16,325 25,450* 22,456 20,821 20,877 45 Banks' custodial liabilities5 18,931 21,852 24,259 24,173 24,118 23,843 25,392 28,694 24,259 24,756 46 U.S. Treasury bills and certificates6 8,841 10,053 10,548 11,260 10,594 10,520 1100,,222288 1111,,112244 1100,,554488 1100,,442255 47 Other negotiable and readily transferable instruments7 8,667 10,207 12,765 11,582 12,093 11,827 13,327 15,145 12,765 12,821 48 Other 1,423 1,592 946 1,331 1,431 1,4% 1,837 2,425 946 1,510 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 7,456 9,111 17,567 9,389 9,481 11,264 17,533 17,089 17,567 17,509 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

Bank-Reported Data A57 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1993 1994 IItteemm 11999911RR 11999922RR 11999933 Julyr Aug.r Sept.r Oct/ Nov/ Dec. Jan.p AREA 1 Total, all foreigners 756,066 810,259 895,430 821,788 846,626 862,147 867,083 887,138 895,430 875,814 2 Foreign countries 747,085 800,909 884,594 812,201 834,261 850,738 856,099 874,183 884,594 864,980 3 Europe 249,097 307,670 376,289 321,005 335,460 340,374 357,847 369,534 376,289 365,949 4 Austria 1,193 1,611 1,857 1,415 1,614 1,672 1,808 1,797 1,857 2,567 5 Belgium and Luxembourg 13,337 20,567 28,650 20,805 23,345 23,635 24,641 27,541 28,650 29,312 6 Denmark 937 3,060 4,517 3,983 3,023 3,135 5,084 4,151 4,517 5,089 7 Finland 1,341 1,299 1,872 2,873 2,667 2,347 2,712 2,250 1,872 1,843 8 France 31,808 41,411 39,704 33,963 36,517 40,622 43,034 36,623 39,704 32,244 9 Germany 8,619 18,630 26,617 24,498 22,199 22,530 22,820 27,025 26,617 27,576 10 Greece 765 913 1,530 1,078 1,122 1,378 1,366 1,704 1,530 1,361 11 Italy 13,541 10,041 11,561 10,721 11,426 11,285 10,466 10,734 11,561 10,702 17 Netherlands 7,161 7,365 15,981 10,465 10,854 11,429 13,368 14,737 15,981 17,532 13 Norway 1,866 3,314 2,975 2,757 2,833 2,901 2,7% 3,199 2,975 2,533 14 Portugal 2,184 2,465 3,366 2,894 3,015 3,180 3,215 3,229 3,366 3,131 15 Russia 241 577 2,511 1,406 2,254 2,229 2,623 2,530 2,511 2,208 16 Spain 11,391 9,793 20,484 16,644 17,207 20,495 20,181 19,705 20,484 19,652 17 Sweden 2,222 2,953 2,573 2,210 1,460 3,474 2,355 2,672 2,573 2,301 18 Switzerland 37,238 39,440 41,588 40,494 40,987 41,909 43,195 42,506 41,588 41,800 19 Turkey 1,598 2,666 3,228 2,882 2,618 2,553 2,897 2,947 3,228 3,120 70 United Kingdom 100,292 111,805 133,738 113,171 118,793 116,205 130,941 135,712 133,738 130,775 71 Yugoslavia 622 504 570 501 511 524 541 546 570 549 22 Other Europe and former U.S.S.R.12 12,741 29,256 32,967 28,245 33,015 28,871 23,804 29,926 32,%7 31,654 23 Canada 21,605 22,420 20,227 22,264 23,917 25,147 27,452 24,152 20,227 20,588 74 Latin America and Caribbean 345,529 317,228 332,537 315,885 316,747 326,346 317,698 325,059 332,537 327,562 75 Argentina 7,753 9,477 14,493 14,120 14,579 14,051 14,319 13,695 14,493 14,495 76 Bahamas 100,622 82,284 73,077 73,414 73,790 77,8% 76,557 78,354 73,077 71,683 77 Bermuda 3,178 7,079 7,873 6,969 6,931 7,239 8,021 7,287 7,873 7,791 78 Brazil 5,704 5,584 5,309 5,425 5,299 5,268 5,057 5,069 5,309 5,163 79 British West Indies 163,620 153,033 165,417 151,519 149,897 156,953 149,468 159,821 165,417 161,028 30 Chile 3,283 3,035 3,203 3,934 3,5% 3,867 3,952 3,455 3,203 3,504 31 Colombia 4,661 4,580 3,172 4,464 4,383 3,988 3,025 3,101 3,172 3,587 37 Cuba 2 3 33 5 5 6 7 7 33 34 33 Ecuador 1,232 993 881 889 860 819 868 851 881 891 34 Guatemala 1,594 1,377 1,207 1,304 1,315 1,278 1,275 1,243 1,207 1,258 35 Jamaica 231 371 410 341 364 375 376 401 410 387 36 Mexico 19,957 19,454 28,064 24,138 24,833 24,414 24,248 21,947 28,064 27,667 37 Netherlands Antilles 5,592 5,205 4,206 4,159 5,413 4,695 5,283 4,725 4,206 5,084 38 Panama 4,695 4,177 3,625 3,747 3,657 3,743 3,567 3,468 3,625 3,592 39 Peru 1,249 1,080 931 891 898 903 873 890 931 880 40 Uruguay 2,096 1,955 1,622 1,775 1,822 1,734 1,716 1,643 1,622 1,727 41 Venezuela 13,181 11,387 12,807 12,373 12,782 12,868 12,903 13,076 12,807 12,460 42 Other 6,879 6,154 6,207 6,418 6,323 6,249 6,183 6,026 6,207 6,331 43 120,462 143,540 144,643 143,132 147,517 147,648 141,363 144,476 144,643 140,090 China 44 People's Republic of China 2,626 3,202 4,011 2,728 3,292 3,261 3,280 3,187 4,011 4,075 45 Republic of China (Taiwan) 11,491 8,408 10,634 9,999 9,483 9,%9 9,804 10,960 10,634 9,960 46 Hong Kong 14,269 18,499 17,233 16,193 15,621 16,388 16,389 18,673 17,233 18,675 47 India 2,418 1,399 1,113 1,053 1,211 1,288 1,251 1,425 1,113 1,436 48 Indonesia 1,463 1,480 1,986 1,688 1,582 1,715 1,504 1,674 1,986 1,807 49 Israel 2,015 3,773 4,436 2,790 2,729 3,241 5,450 4,582 4,436 4,138 50 Japan 47,069 58,435 61,483 62,233 67,999 65,626 60,171 58,866 61,483 58,606 51 Korea (South) 2,587 3,337 4,904 4,298 3,873 4,356 3,889 4,409 4,904 4,712 5? Philippines 2,449 2,275 2,035 3,1% 2,648 2,735 2,192 1,902 2,035 1,912 53 2,252 5,582 6,137 5,830 6,058 5,846 6,446 6,231 6,137 6,156 54 Middle Eastern oil-exporting countries13 15,752 21,437 15,825 18,409 19,141 17,255 14,681 15,489 15,825 13,134 55 Other 16,071 15,713 14,846 14,715 13,880 15,968 16,306 17,078 14,846 15,479 56 4,825 5,884 6,627 5,680 5,649 6,127 6,179 5,762 6,627 5,823 57 Egypt 1,621 2,472 2,209 1,880 2,018 2,457 2,220 2,089 2,209 1,961 58 Morocco 79 76 99 138 78 86 87 110 99 94 59 South Africa 228 190 451 172 233 275 367 272 451 214 60 Zaire 31 19 12 25 20 16 15 10 12 13 61 Oil-exporting countries 1,082 1,346 1,303 1,417 1,279 1,281 1,271 1,446 1,303 1,186 62 Other 1,784 1,781 2,553 2,048 2,021 2,012 2,219 1,835 2,553 2,355 63 5,567 4,167 4,271 4,235 4,971 5,0% 5,560 5,200 4,271 4,968 64 Australia 4,464 3,043 3,308 3,253 3,890 4,045 4,434 3,853 3,308 3,810 65 Other 1,103 1,124 963 982 1,081 1,051 1,126 1,347 %3 1,158 66 Nonmonetary international and regional organizations 8,981 9,350 10,836 9,587 12,365 11,409 10,984 12,955 10,836 10,834 67 International1 6,485 7,434 6,751 6,028 8,367 7,679 7,340 9,084 6,751 6,322 68 Latin American regional16 1,181 1,415 3,218 2,077 2,737 2,448 2,539 3,050 3,218 3,402 69 Other regional17 1,315 501 867 1,482 1,261 1,282 1,105 821 867 1,110 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. 12. Includes the Bank for International Settlements. Since December 1992, Excludes "holdings of dollars" of the International Monetary Fund. includes all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, 16. Principally the Inter-American Development Bank. and Slovenia. 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." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • May 1994 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States» Payable in U.S. Dollars Millions of dollars, end of period 1993r 1994 AArreeaa aanndd ccoouunnttrryy 11999911rr 11999922rr 11999933 July Aug. Sept. Oct. Nov. Dec. Jan." 1 Total, all foreigners 514,339 499,437 482,505 472,877 461,191 477,233 465,986 468,771 482,505 469,158 2 Foreign countries 508,056 494,355 480,100 471,570 459,239 474,854 464,743 466,570 480,100 466,321 3 Europe 114,310 123,377 120,823 125,094 116,836 124,253 124,616 120,673 120,823 113,604 4 Austria 327 331 413 1,094 691 457 568 501 413 725 5 Belgium and Luxembourg 6,158 6,404 6,420 6,127 6,515 6,589 5,500 5,911 6,420 5,155 6 Denmark 686 707 382 835 693 631 1,056 1,261 382 483 7 Finland 1,907 1,418 598 1,007 705 594 730 606 598 699 8 France 15,112 14,723 11,490 11,847 11,500 10,963 11,516 11,622 11,490 11,705 9 Germany 3,371 4,222 7,683 7,746 6,766 7,994 7,570 6,961 7,683 7,386 10 Greece 553 717 679 509 508 629 592 684 679 657 11 Italy 8,242 9,047 8,891 8,153 8,839 8,985 8,050 8,417 8,891 8,974 1? Netherlands 2,546 2,468 3,064 3,260 3,081 3,383 3,163 3,607 3,064 3,035 13 Norway 669 355 3% 876 941 841 779 598 3% 738 14 Portugal 344 325 720 710 803 787 826 787 720 807 15 Russia 1,970 3,147 2,295 2,799 2,591 2,547 2,581 2,295 2,295 2,142 16 Spain 1,881 2,755 2,763 5,117 4,184 3,652 4,747 4,388 2,763 3,267 17 Sweden 2,335 4,923 4,100 5,131 4,278 4,619 4,111 3,531 4,100 3,704 18 Switzerland 4,540 4,717 6,567 5,193 5,634 5,216 4,647 5,946 6,567 7,177 19 Turkey 1,063 962 1,287 1,492 1,549 1,418 1,638 1,790 1,287 1,118 70 United Kingdom 60,395 63,430 60,817 60,772 55,118 62,510 64,052 59,411 60,817 53,217 71 Yugoslavia2 825 569 536 547 547 542 535 549 536 539 22 Other Europe and former U.S.S.R.3 1,386 2,157 1,722 1,879 1,893 1,896 1,955 1,808 1,722 2,076 23 Canada 15,113 13,845 18,311 17,776 17,373 19,009 15,756 15,478 18,311 19,102 74 Latin America and Caribbean 246,137 218,078 223,678 208,294 207,554 215,634 212,031 216,687 223,678 225,671 75 Argentina 5,869 4,958 4,425 4,841 4,740 4,715 4,390 4,518 4,425 4,561 76 Bahamas 87,138 60,835 65,045 56,843 56,276 60,906 60,350 63,242 65,045 66,411 77 Bermuda 2,270 5,935 8,032 8,578 7,122 5,550 8,915 7,565 8,032 10,234 78 Brazil 11,894 10,773 11,803 10,842 10,927 11,294 11,675 11,677 11,803 12,705 79 British West Indies 107,846 101,507 97,484 91,246 93,116 97,409 90,041 92,621 97,484 93,852 30 Chile 2,805 3,397 3,614 3,898 3,796 3,832 3,857 3,728 3,614 3,546 31 Colombia 2,425 2,750 3,179 2,886 2,916 2,921 2,957 3,040 3,179 3,241 37, Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 1,053 884 673 732 739 701 707 704 673 677 34 Guatemala 228 262 286 240 256 244 269 286 286 313 35 Jamaica 158 162 194 182 181 183 175 186 194 179 36 Mexico 16,567 14,991 15,831 15,738 15,652 15,724 16,155 16,073 15,831 16,462 37 Netherlands Antilles 1,207 1,379 2,367 3,172 3,153 3,155 3,339 3,048 2,367 3,111 38 Panama 1,560 4,654 2,911 2,532 2,361 2,370 2,491 2,625 2,911 2,841 39 Peru 739 730 651 651 667 617 636 620 651 695 40 Uruguay 599 936 951 807 816 926 926 918 951 793 41 Venezuela 2,516 2,525 3,070 3,001 2,876 2,835 2,815 3,054 3,070 2,929 42 Other 1,263 1,400 3,162 2,105 1,960 2,252 2,333 2,782 3,162 3,121 43 125,262 131,789 110,661 113,182 111,196 109,095 105,511 107,519 110,661 101,341 China 44 People's Republic of China 747 906 2,299 871 638 699 773 706 2,299 881 45 Republic of China (Taiwan) 2,087 2,046 2,617 1,549 1,585 1,594 1,674 2,003 2,617 2,611 46 Hong Kong 9,617 9,642 10,864 10,654 9,390 11,153 9,640 10,449 10,864 10,221 47 India 441 529 589 473 442 572 623 645 589 620 48 Indonesia 952 1,189 1,522 1,282 1,289 1,330 1,268 1,474 1,522 1,556 49 860 820 826 733 775 747 752 787 826 932 50 Japan 84,807 79,172 59,575 62,726 64,890 60,263 60,308 59,934 59,575 54,164 51 Korea (South) 6,048 6,179 7,551 7,587 7,245 7,098 7,133 7,138 7,551 7,374 5? Philippines 1,910 2,145 1,408 1,357 1,250 1,143 1,168 1,265 1,408 1,132 53 Thailand 1,713 1,867 2,154 2,006 2,018 2,143 2,146 2,110 2,154 2,373 54 Middle Eastern oil-exporting countries4 8,284 18,540 14,398 16,976 15,912 14,251 13,580 13,853 14,398 12,876 55 Other 7,796 8,754 6,858 6,968 5,762 8,102 6,446 7,155 6,858 6,601 56 Africa 4,928 4,279 3,818 3,856 3,902 4,023 3,919 3,799 3,818 3,746 57 Egypt 294 186 196 148 168 176 160 218 196 198 58 Morocco 575 441 444 437 443 454 433 437 444 489 59 South Africa 1,235 1,041 633 742 705 713 663 664 633 581 60 Zaire 4 4 4 4 4 3 3 4 4 4 61 Oil-exporting countries5 1,298 1,002 1,128 1,232 1,224 1,206 1,187 1,119 1,128 1,169 62 Other 1,522 1,605 1,413 1,293 1,358 1,471 1,473 1,357 1,413 1,305 63 Other 2,306 2,987 2,809 3,368 2,378 2,840 2,910 2,414 2,809 2,857 64 Australia 1,665 2,243 2,072 2,443 1,847 2,414 2,401 1,873 2,072 2,030 65 Other 641 744 737 925 531 426 509 541 737 827 66 Nonmonetary international and regional organizations6 6,283 5,082 2,405 1,307 1,952 2,379 1,243 2,201 2,405 2,837 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. Since December 1992, 6. Excludes the Bank for International Settlements, which is included in includes all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, "Other Western Europe." and Slovenia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 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 1994 CCllaaiimm 11999911 11999922rr 11999933 Julyr Aug.r Sept.r Oct.r Nov.r Dec.r Jan." 11 TToottaall 579,683r 559,495 522,915 518,514 522,915 22 BBaannkkss'' ccllaaiimmss 514,339 499,437 482,505 472,877 461,191 477,233 465,986 468,771 482,505 469,158 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 37,126 31,367 28,995 32,788 30,310 31,940 31,335 29,776 28,995 30,575 44 OOwwnn ffoorreeiiggnn ooffffiicceess 318,800 303,991 286,233 280,100 275,295 286,604 269,956 279,864 286,233 274,114 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 116,602 109,342 97,907 93,101 94,009 96,146 91,921 92,028 97,907 90,911 66 DDeeppoossiittss 69,018 61,550 46,786 44,812 45,473 44,664 43,785 43,995 46,786 40,301 77 OOtthheerr 47,584 47,792 51,121 48,289 48,536 51,482 48,136 48,033 51,121 50,610 88 AAllll ootthheerr ffoorreeiiggnneerrss 41,811 54,737 69,370 66,888 61,577 62,543 72,774 67,103 69,370 73,558 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 65,344 60,058 40,410 41,281 40,410 1100 DDeeppoossiittss 15,280 15,452 9,619 9,343 9,619 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss44 37,125 31,474 17,155 18,475 17,155 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss 12,939 13,132 13,636 13,463 13,636 MMEEMMOO 1133 CCuussttoommeerr lliiaabbiilliittyy oonn aacccceeppttaanncceess 8,974 8,655 7,871 8,190 7,871 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess 43,024r 36,163 22,825 29,316 28,395 24,516 26,931 21,847 22,825 n.a. 1. For banks' claims, data are monthly; for claims of banks' domestic custom- foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of ers, data are quarterly. head office or parent foreign bank. Reporting banks include all types of depository institution, as well as some 3. Assets held by reporting banks in the accounts of their domestic customers. brokers and dealers. 4. Principally negotiable time certificates of deposit and bankers acceptances. 2. For U.S. banks, includes amounts due from own foreign branches and 5. Includes demand and time deposits and negotiable and nonnegotiable foreign subsidiaries consolidated in Consolidated Report of Condition filed with certificates of deposit denominated in U.S. dollars issued by banks abroad. For bank regulatory agencies. For agencies, branches, and majority-owned subsidiar- description of changes in data reported by nonbanks, see Federal Reserve ies of foreign banks, consists principally of amounts due from head office or parent Bulletin, vol. 65 (July 1979), p. 550. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1993 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999900 11999911 11999922 Mar.r Juner Sept.r Dec.p 1 Total 206,903 195,302 195,119 182,445 183,312 189,900 194,599 By borrower 2 Maturity of one year or less 165,985 162,573 163,325 152,226 154,648 162,195 165,897 3 Foreign public borrowers 19,305 21,050 17,813 21,239 17,962 21,226 17,308 4 All other foreigners 146,680 141,523 145,512 130,987 136,686 140,969 148,589 5 Maturity of more than one year 40,918 32,729 31,794 30,219 28,664 27,705 28,702 6 Foreign public borrowers 22,269 15,859 13,266 12,214 11,255 10,507 10,994 7 All other foreigners 18,649 16,870 18,528 18,005 17,409 17,198 17,708 By area Maturity of one year or less 8 Europe 49,184 51,835 53,300 54,871 54,405 57,252 56,087 9 Canada 5,450 6,444 6,091 7,884 7,979 9,835 7,538 10 Latin America and Caribbean 49,782 43,597 50,376 45,148 48,619 51,683 56,672 11 Asia 53,258 51,059 45,709 37,871 38,803 37,725 40,263 1? Africa 3,040 2,549 1,784 1,677 1,712 1,916 1,783 13 All other3 5,272 7,089 6,065 4,775 3,130 3,784 3,554 Maturity of more than one year 14 Europe 3,859 3,878 5,367 4,896 4,579 4,423 4,317 15 Canada 3,290 3,595 3,287 3,120 2,909 2,549 2,553 16 Latin America and Caribbean 25,774 18,277 15,312 14,574 13,828 13,519 14,049 17 Asia 5,165 4,459 5,038 5,063 4,809 4,736 5,403 18 Africa 2,374 2,335 2,380 2,130 2,050 2,049 1,933 19 All other3 456 185 410 436 489 429 447 1. Reporting banks include all kinds of depository institutions besides commer- 2. Maturity is time remaining to maturity, rial banks, as well as some brokers and dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • May 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 Area or country IVoV iyyw Dec. Mar. June Sept. Dec. Mar. June Sept. Dec.p 1 Total 340.9 320.1 343.6 351.7 358.7 344.5 346.5 361.0' 377.1' 388.1' 403.3 2 G-10 countries and Switzerland 152.9 132.2 137.6 130.9 135.6 136.0 132.9 142.4 150.1' 153.4' 160.9 3 Belgium and Luxembourg 6.3 5.9 6.0 5.3 6.2 6.2 5.6 6.1 7.0 7.1 7.4 4 France 11.7 10.4 11.0 10.0 11.9 15.3 15.3 13.5 14.0 12.3' 11.7 5 Germany 10.5 10.6 8.3 8.4 8.8 10.9 9.3 9.9 10.8 12.4 12.6 6 Italy 7.4 5.0 5.6 5.4 8.0 6.4 6.5 6.7 7.9* 8.7' 7.6 7 Netherlands 3.1 3.0 4.7 4.3 3.3 3.7 2.8 3.6 3.7 3.7 4.7 8 Sweden 2.0 2.2 1.9 2.0 1.9 2.2 2.3 3.0 2.5 2.5 2.5 9 Switzerland 7.1 4.4 3.4 3.2 4.6 5.2 4.8 5.3 4.7 5.6 5.9 10 United Kingdom 67.2 60.9 68.5 64.7 65.6 61.0 60.8 65.7 73.5 74.7' 84.4 11 Canada 5.4 5.9 5.8 6.5 6.5 6.3 6.3 8.2 8.1 9.7 6.6 12 Japan 32.3 24.0 22.6 21.1 18.7 18.9 19.3 20.4 17.9 16.9 17.4 13 Other industrialized countries 21.0 22.9 22.8 21.4 25.5 25.0 24.0 25.4 27.2 26.0 24.6 14 Austria 1.5 1.4 .6 .8 .8 .7 1.2 1.2 1.3 .6 .4 15 Denmark 1.1 1.1 .9 .8 1.3 1.5 .9 .8 1.0 1.1 1.0 16 Finland 1.0 .7 .7 .8 .8 1.0 .7 .7 .9 .6 .4 17 Greece 2.5 2.7 2.6 2.3 2.8 3.0 3.0 2.7 3.1 3.2 3.2 18 Norway 1.4 1.6 1.4 1.5 1.7 1.6 1.2 1.8 1.8 2.1 1.7 19 Portugal .4 .6 .6 .5 .5 .5 .4 .7 .9 1.0 .8 20 Spain 7.1 8.3 8.3 7.7 10.1 9.7 8.9 9.5 10.5 9.3 8.9 21 Turkey 1.2 1.7 1.4 1.2 1.5 1.5 1.3 1.4 2.1 2.1 2.1 22 Other Western Europe 1.0 1.2 1.8 1.5 2.0 1.5 1.7 2.0 1.7 2.2 2.6 23 South Africa 2.0 1.8 1.9 1.8 1.7 1.7 1.7 1.6 1.3 1.2 1.1 24 Australia 1.6 1.8 2.7 2.3 2.2 2.3 2.9 2.9 2.5 2.8 2.3 25 OPEC2 17.1 12.8 14.5 15.8 16.2 15.9 16.1 16.8 15.9 14.9 16.9 26 Ecuador 1.3 1.0 .7 .7 .7 .7 .6 .6 .6 .5 .5 27 Venezuela 7.0 5.0 5.4 5.4 5.3 5.4 5.2 5.3 5.6 5.6 5.3 28 Indonesia 2.0 2.7 2.7 3.0 3.0 3.0 3.0 3.1 3.1 2.8 3.2 29 Middle East countries 5.0 2.5 4.2 5.3 5.9 5.4 6.2 6.6 5.4 4.9 6.7 30 African countries 1.7 1.7 1.5 1.4 1.4 1.4 1.1 1.1 1.1 1.1 1.2 31 Non-OPEC developing countries 77.5 65.4 63.9 69.7 68.1 72.8 72.1 74.4 76.6 76.9 82.5 Latin America 32 Argentina 6.3 5.0 4.8 5.0 5.1 6.2 6.6 7.0 6.6 7.2 7.7 33 Brazil 19.0 14.4 9.6 10.8 10.6 10.8 10.8 11.6 12.3 11.6 12.0 34 Chile 4.6 3.5 3.6 3.9 4.0 4.2 4.4 4.6 4.6 4.7 4.7 35 Colombia 1.8 1.8 1.7 1.6 1.6 1.7 1.8 1.9 1.9 2.0 2.1 36 Mexico 17.7 13.0 15.5 17.7 16.3 17.1 16.0 16.8 16.8 17.5 17.7 37 Peru .6 .5 .4 .4 .4 .5 .5 .4 .4 .3 .4 38 Other 2.8 2.3 2.1 2.2 2.2 2.5 2.6 2.6 2.7 2.6 3.0 Asia China 39 Peoples Republic of China .3 .2 .3 .3 .3 .3 .7 .6 1.6 .5 2.0 40 Republic of China (Taiwan) 4.5 3.5 4.1 4.8 4.6 5.0 5.2 5.3 5.9 6.4 7.3 41 India 3.1 3.3 3.0 3.6 3.8 3.6 3.2 3.1 3.1 2.9 3.2 42 Israel .7 .5 .5 .4 .4 .4 .4 .5 .4 .4 .5 43 Korea (South) 5.9 6.2 6.8 6.9 6.9 7.4 6.6 6.5 6.9 6.5 6.7 44 Malaysia 1.7 1.9 2.3 2.5 2.7 3.0 3.1 3.4' 3.7 4.1 4.4 45 Philippines 4.1 3.8 3.7 3.6 3.1 3.6 3.6 3.4 2.9 2.6 3.1 46 Thailand 1.3 1.5 1.7 1.7 1.9 2.2 2.2 2.2 2.4 2.8 3.1 47 Other Asia3 1.0 1.7 2.0 2.3 2.5 2.7 2.7 2.7 2.6 3.0 2.9 Africa 48 Egypt .4 .4 .4 .3 .5 .3 .2 .2 .2 .2 .4 49 Morocco .9 .8 .7 .7 .7 .6 .6 .5 .6 .6 .6 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.0 1.0 .7 .7 .6 .9 1.0 .8 .9 .8 .8 52 Eastern Europe 3.5 2.3 2.4 2.9 3.0 3.1 3.1 2.9 3.2 3.0 3.0 53 Russia .7 .2 .9 1.4 1.7 1.8 1.9 1.7 1.9 1.7 1.6 54 Yugoslavia 1.6 1.2 .9 .8 .7 .7 .6 .6 .6 .6 .6 55 Other 1.3 .9 .7 .6 .6 .7 .6 .7 .7 .7 .9 56 Offshore banking centers 38.4 44.7 54.2 63.0 61.4 54.5 58.3 60.1' 57.8' 67.5' 72.0 57 Bahamas 5.5 2.9 11.9 15.3 12.9 8.9 6.9 9.6 6.9 12.4 12.6 58 Bermuda 1.7 4.4 2.3 3.9 5.1 3.8 6.2 4.1 4.5 5.5 8.1 59 Cayman Islands and other British West Indies 9.0 11.7 15.8 18.6 19.3 16.9 21.8 17.6' 15.6 15.1 16.5 60 Netherlands Antilles 2.3 7.9 1.2 1.0 .8 .7 1.1 1.6 2.5 2.8 2.3 61 Panama 1.4 1.4 1.4| 1.6 J 1.9 2.0 1.9 2.0 2.1 2.1 2.4 62 Lebanon J J 63 Hong Kong 1L3 9.7 14^4 14!O 14^9 15^2 13^8 16.7' 16> 19!lr 18J 64 Singapore 7.0 6.6 7.1 8.5 6.4 6.8 6.5 8.4 9.3 10.4 11.2 65 Other5 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .1 66 Miscellaneous and unallocated6 30.5 39.9 48.0 47.8 48.6 36.8 39.7 38.8' 46.2' 46.3' 43.3 1. The banking offices covered by these data are the U.S. offices and foreign by an increase in the reporting threshold for "shell" branches from $50 million to branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. $150 million equivalent in total assets, the threshold now applicable to all Offices not covered include (1) U.S. agencies and branches of foreign banks, and reporting branches. (2) foreign subsidiaries of U.S. banks. U.S. office data include other types of 2. Organization of Petroleum Exporting Countries, shown individually; other U.S.-owned depository institutions as well as some types of brokers and dealers. members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, To minimize duplication, the data are adjusted to exclude the claims on foreign Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally branches held by a U.S. office or another foreign branch of the same banking members of OPEC). institution. The data in this table combine foreign branch claims in table 3.14 (the 3. Excludes Liberia. sum of lines 7 through 10) with the claims of U.S. offices in table 3.18 (excluding 4. Includes Canal Zone. those held by agencies and branches of foreign banks and those constituting 5. Foreign branch claims only. claims on own foreign branches). 6. Includes New Zealand, Liberia, and international and regional Since June 1984, reported claims held by foreign branches have been reduced organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1992 1993 Type of liability and area or country 11998899 11999900 11999911 June Sept. Dec. Mar. June Sept. 1 Total 38,764 46,043 44,549 46,122 46,981 45,218 45,776 45,881 48,218 2 Payable in dollars 33,973 40,786 38,893 39,270 38,286 37,159 37,501 36,558 38,518 3 Payable in foreign currencies 4,791 5,257 5,656 6,852 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 25,939 5 Payable in dollars 14,035 16,979 17,968 17,777 17,417 16,587 16,785 16,434 18,189 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 22,279 8 Trade payables 8,070 10,683 9,267 10,285 10,227 9,893 10,005 9,683 9,140 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 20,329 i 1 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 2,757 2,933 2,860 2,770 2,551 1,200 25 Mexico 6 5 7 8 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 5,552 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 countries2 .. 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 countries 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 6,973 33 Europe 175 275 248 240 - 173 296 262 267 255 34 Belgium and Luxembourg 877 1,218 1,039 724 756 750 705 773 640 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 2,304 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 1,814 1,493 1,495 1,776 1,820 1,762 42 Bahamas 41 12 3 8 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 countries' 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

A62 International Statistics • May 1994 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1992r 1993 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998899 11999900 11999911 June Sept. Dec. Mar.r June1 Sept. 1 Total 33,173 35,348 45,121 46,517 46,192 41,637 45,569 41,174 41,805 2 Payable in dollars 30,773 32,760 42,548 43,492 43,218 39,047 42,704 38,093 38,575 3 Payable in foreign currencies 2,400 2,589 2,573 3,025 2,974 2,590 2,865 3,081 3,230 By type 4 Financial claims 19,297 19,874 27,744 28,977 28,573 23,532 26,073 21,791 23,331 5 Deposits 12,353 13,577 19,946 19,813 19,524 15,100 16,527 11,646 13,296 6 Payable in dollars 11,364 12,552 19,071 18,456 18,387 14,302 15,469 10,728 12,317 7 Payable in foreign currencies 989 1,025 875 1,357 1,137 798 1,058 918 979 8 Other financial claims 6,944 6,297 7,798 9,164 9,049 8,432 9,546 10,145 10,035 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 1,017 892 731 1,021 765 753 924 759 11 Commercial claims 13,876 15,475 17,377 17,540 17,619 18,105 19,496 19,383 18,474 12 Trade receivables 12,253 13,657 14,465 14,846 14,676 15,547 17,140 16,953 15,548 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 16,603 16,803 17,078 18,442 18,144 16,982 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 12,906 11,301 9,310 10,330 9,623 8,261 17 Belgium and Luxembourg 28 76 13 25 16 8 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 7,496 7,971 11,409 8,731 8,078 6,234 6,987 6,570 5,257 23 Canada 1,904 2,934 2,642 2,545 2,281 1,709 2,007 1,761 1,573 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 1,090 814 568 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 10,828 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 countries 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 7,921 38 Belgium and Luxembourg 242 212 194 255 173 188 169 170 163 39 France 964 1,240 1,585 1,685 1,824 1,519 1,468 1,453 1,391 40 Germany 696 807 954 922 895 916 961 968 863 41 Netherlands 479 555 645 666 588 546 724 556 395 42 Switzerland 313 301 295 394 305 352 425 441 375 43 United Kingdom 1,575 1,775 2,086 2,172 2,004 2,068 2,312 2,502 2,223 44 Canada 1,091 1,074 1,114 1,066 1,143 1,226 1,270 1,290 1,307 45 Latin America and Caribbean 2,184 2,375 2,655 2,737 3,222 2,997 3,401 3,379 2,980 46 Bahamas 58 14 13 12 12 27 18 16 19 47 Bermuda 323 246 264 291 256 255 195 239 225 48 Brazil 297 326 427 450 409 352 829 782 401 49 British West Indies 36 40 41 32 43 40 17 43 39 50 Mexico 508 661 840 861 975 907 974 880 832 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 5,343 53 Japan 1,199 1,460 1,900 1,798 1,776 1,842 2,127 1,824 2,447 54 Middle Eastern oil-exporting countries 518 460 621 609 513 682 760 659 446 55 Africa 429 488 429 428 439 549 456 507 497 56 Oil-exporting countries 108 67 95 73 60 78 75 97 107 57 Other4 393 367 393 329 347 351 409 402 426 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 A63 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1994 1993 1994 Transaction and area or country 1992 1993 Jan.- July Aug. Sept.r Oct.r Nov.r Dec/ Jan.p Jan. U.S. corporate securities STOCKS 1 Foreign purchases 221,367 319,449 32,238 24,441r 26,133r 23,892 32,350 31,924 32,843 32,238 2 Foreign sales 226,503 297,913 28,965 25,046r 23,693r 23,023 27,840 28,755 28,362 28,965 3 Net purchases or sales (-) -5,136 21,536 3,273 —605r 2,440"" 869 4,510 3,169 4,481 3,273 4 Foreign countries -5,169 21,264 3,273 —652r 2,413r 951 4,598 3,099 4,457 3,273 5 Europe -4,927 10,615 2,951 — 185r 67 OF 434 3,095 1,407 2,415 2,951 6 France -1,350 -103 119 45r -9 -152 198 45 61 119 7 Germany -80 1,647 1,170 76r 202r 112 328 130 266 1,170 8 Netherlands -262 -603 169 -452r 133r 69 134 -767 183 169 9 Switzerland 168 2,986 254 3691 354r -259 409 205 338 254 10 United Kingdom -3,301 4,510 614 -73r -204r 570 1,709 1,470 1,078 614 11 Canada 1,407 -3,213 314 -l,400r -128r -5% -300 11 -110 314 12 Latin America'and Caribbean 2,203 5,709 948 413r 613r 139 1,245 941 1,058 948 13 Middle East1 -88 -311 -100 -135 -44 10 -77 53 11 -100 14 Other Asia -3,943 8,199 -911 632 1,204 977 602 601 965 -911 15 Japan -3,598 3,826 -800 626 860 1,016 349 488 681 -800 16 Africa 10 63 10 -49 63 3 5 6 20 10 17 Other countries 169 202 61 72 35 -16 28 80 98 61 18 Nonmonetary international and regional organizations 33 272 0 47 27 -82 -88 70 2244 00 BONDS2 19 Foreign purchases 214,922 283,651 25,445 22,738 22,288 24,845 27,565 28,947 28,395 25,445 20 Foreign sales 175,842 217,637 19,643 20,730 16,481 16,294 19,000 21,545 17,427 19,643 21 Net purchases or sales (-) 39,080 66,014 5,802 2,008 5,807 8,551 8,565 7,402 10,968 5,802 22 Foreign countries 37,964 65,476 5,818 2,018 5,801 7,865 8,426 7,375 10,901 5,818 23 Europe 17,435 21,805 2,868 -1,001 2,102 3,913 3,911 1,534 3,118 2,868 24 France 1,203 2,346 215 -76 64 13 512 110 145 215 25 Germany 2,480 883 -100 2 -207 -419 913 -231 -62 -100 26 Netherlands 540 -290 75 11 317 219 -518 49 95 75 27 Switzerland -579 -627 176 172 -327 -204 203 -80 28 176 28 United Kingdom 12,421 18,970 1,626 -1,214 1,847 4,059 2,666 2,300 2,853 1,626 29 Canada 237 1,653 23 218 164 249 95 54 319 23 30 Latin America and Caribbean 9,300 16,493 1,909 901 1,678 846 1,727 2,650 3,681 1,909 31 Middle East1 3,166 3,257 360 147 158 171 375 432 383 360 32 Other Asia 7,545 20,846 687 1,382 1,432 2,373 2,256 2,765 3,137 687 33 Japan -450 11,569 -104 890 919 993 1,574 1,478 2,477 -104 34 Africa 354 1,149 -51 224 317 236 47 -2 119 -51 35 Other countries -73 273 22 147 -50 77 15 -58 144 22 36 Nonmonetary international and regional organizations 1,116 538 -16 -10 6 686 139 27 67 -16 Foreign securities 37 Stocks, net purchases or sales (-)3 -32,259 -69,063 -5,907 -7,992 -12,229 -5,176 -7,474 -6,931 -6,502 -5,907 38 Foreign purchases 150,051 245,571 32,928 19,607 20,737 21,475 24,740 28,408 31,128 32,928 39 Foreign sales3 182,310 314,634 38,835 27,599 32,966 26,651 32,214 35,339 37,630 38,835 40 Bonds, net purchases or sales (-) -15,605 -61,268 -8,981 -10,661 -1,046 -9,903 -2,446 -54 -8,090 -8,981 41 Foreign purchases 513,589 834,502 87,940 68,741 75,850 80,145 76,034 87,459 79,334 87,940 42 Foreign sales 529,194 895,770 96,921 79,402 76,896 90,048 78,480 87,513 87,424 96,921 43 Net purchases or sales (-), of stocks and bonds -47,864 -130,331 -14,888 -18,653 -13,275 -15,079 -9,920 -6,985 -14,592 -14,888 44 Foreign countries -51,274 -130,492 -14,931 -18,763 -13,329 -15,155 -10,269 -6,994 -14,622 -14,931 45 Europe -31,350 -87,556 -5,406 -15,516 -10,544 -13,207 -5,004 -4,530 -4,347 -5,406 46 Canada -6,893 -14,580 -2,511 -2,557 1,635 -1,394 -916 709 -1,718 -2,511 47 Latin America and Caribbean -4,340 -9,324 -2,997 -633 -1,127 1,945 -1,280 -2,248 -4,518 -2,997 48 Asia -7,923 -14,941 -3,179 121 -2,644 -2,221 -2,002 -502 -3,553 -3,179 49 Africa -13 -185 -60 4 7 14 14 0 13 -60 50 Other countries -755 -3,906 -778 -182 -656 -292 -1,081 -423 -499 -778 51 Nonmonetary international and regional organizations 3,410 161 43 110 54 76 349 9 30 43 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

A64 International Statistics • May 1994 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1994 1993r 1994 Country or area 1992 1993 Jan.- July Aug. Sept. Oct. Nov. Dec. Jan." Jan. Transactions, net purchases or sales (-) during' period1 1 Estimated total 39,288 24,285 -425 -1,531 13,980 -10,890 3,925 15,194 507 -425 2 Foreign countries 37,935 24,116 -546 -1,144 14,368 -10,748 5,055 14,609 696 -546 3 Europe 19,625 -2,311 -1,909 -1,539 3,547 -5,917 3,500 -841 499 -1,909 4 Belgium and Luxembourg 1,985 1,218 -63 505 -218 207 -205 22 -65 -63 5 Germany 2,076 -9,977 2,327 -2,918 305 1,209 1,176 -750 571 2,327 6 Netherlands -2,959 -515 52 524 -167 137 -506 206 -189 52 7 Sweden -804 1,421 -4 32 293 53 47 141 -31 -4 8 Switzerland 488 -1,501 26 -223 -74 -209 448 573 -70 26 9 United Kingdom 24,184 6,266 -3,372 1,455 3,787 -8,201 833 -1,900 -412 -3,372 10 Other Europe and former U.S.S.R -5,345 777 -875 -914 -379 887 1,707 867 695 -875 11 Canada 562 11,252 32 2,270 324 -1,119 -342 1,358 846 32 12 Latin America and Caribbean -3,222 -4,692 3,669 -333 6,917 -3,311 3,701 2,070 -4,830 3,669 13 Venezuela 539 389 -208 2 -7 32 -102 19 56 -208 14 Other Latin America and Caribbean -1,956 -5,925 2,960 510 1,178 -1,700 676 -36 -1,061 2,960 15 Netherlands Antilles -1,805 844 917 -845 5,746 -1,643 3,127 2,087 -3,825 917 16 Asia 23,517 20,557 -2,259 -2,587 3,755 -574 -2,034 11,796 4,029 -2,259 17 Japan 9,817 17,070 -3,074 -980 3,561 -1,809 156 5,661 649 -3,074 18 Africa 1,103 1,156 -135 116 292 616 74 35 115 -135 19 Other -3,650 -1,846 56 929 -467 -443 156 191 37 56 20 Nonmonetary international and regional organizations 1,353 169 121 -387 -388 -142 -1,130 585 -189 121 21 International 1,018 -336 315 -321 -698 -99 -874 821 124 315 22 Latin American regional 533 654 7 -21 30 18 -23 40 -1 7 MEMO 23 Foreign countries 37,935 24,116 -546 -1,144 14,368 -10,748 5,055 14,609 6% -546 24 Official institutions 6,876 1,297 4,117 -4,677 724 3,181 1,619 6,248 3,637 4,117 25 Other foreign 31,059 22,819 -4,663 3,533 13,644 -13,929 3,436 8,361 -2,941 -4,663 Oil-exporting countries 26 Middle East2 4,317 -8,836 -1,518 -1,261 -1,172 -980 -820 -6 84 -1,518 27 Africa 11 -5 0 0 0 0 0 0 -9 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 A65 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS1 Percent per year Rate on Mar. 31, 1994 Rate on Mar. 31, 1994 Rate on Mar. 31, 1994 Country Country Country Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e e M ffe o c n t t i h v e Austria.. 5.0 Feb. 1994 Germany... 5.25 Feb. 1994 Norway 4.75 Feb. 1994 Belgium . 5.0 Feb. 1994 Italy 7.5 Feb. 1994 Switzerland 4.0 Dec. 1993 Canada.. 5.64 Mar. 1994 Japan 1.75 Sept. 1993 United Kingdom 12.0 Sept. 1992 Denmark 5.50 Feb. 1994 Netherlands 5.0 Dec. 1993 France2.. 5.90 Mar. 1994 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Eurodollars 5.86 3.70 3.18 3.08 3.26 3.36 3.26 3.15 3.43 3.75 7 United Kingdom 11.47 9.56 5.88 5.88 5.74 5.52 5.29 5.34 5.15 5.12 3 Canada 9.07 6.76 5.14 4.90 4.76 4.34 4.09 3.89 3.89 4.45 4 Germany 9.15 9.42 7.17 6.52 6.53 6.20 5.99 5.76 5.78 5.73 5 Switzerland 8.01 7.67 4.79 4.61 4.44 4.44 4.10 3.90 4.04 3.99 6 Netherlands 9.19 9.25 6.73 6.26 6.20 5.85 5.50 5.12 5.19 5.23 7 France 9.49 10.14 8.30 7.07 6.85 6.56 6.39 6.19 6.18 6.11 8 Italy 12.04 13.91 10.09 9.05 8.69 8.94 8.56 8.38 8.42 8.36 9 Belgium 9.30 9.31 8.10 9.82 9.05 7.93 7.03 6.88 6.39 6.10 10 Japan 7.33 4.39 2.96 2.59 2.44 2.31 2.06 2.13 2.21 2.26 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

A66 International Statistics • May 1994 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1993 1994 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999911 11999922 11999933 Oct. Nov. Dec. Jan. Feb. Mar. 1 Australia/dollar2 77.872 73.521 67.993 66.100 66.465 67.364 69.608 71.611 71.087 2 Austria/schilling 11.686 10.992 11.639 11.540 11.958 12.025 12.252 12.200 11.8% 3 Belgium/franc 34.195 32.148 34.581 35.674 36.227 35.694 36.206 35.768 34.862 4 Canada/dollar 1.1460 1.2085 1.2902 1.3263 1.3174 1.3308 1.3173 1.3424 1.3644 5 China, P.R./yuan 5.3337 5.5206 5.7795 5.8013 5.8086 5.8210 8.7219 8.7249 8.7241 6 Denmark/krone 6.4038 6.0372 6.4863 6.6379 6.7667 6.7042 6.7697 6.7668 6.62% 7 Finland/markka 4.0521 4.4865 5.7251 5.7554 5.8143 5.7602 5.7004 5.5930 5.5436 8 France/franc 5.6468 5.2935 5.6669 5.7541 5.9069 5.8477 5.9207 5.8955 5.7647 9 Germany/deutsche mark 1.6610 1.5618 1.6545 1.6405 1.7005 1.7105 1.7426 1.7355 1.6909 10 Greece/drachma 182.63 190.81 229.64 237.93 243.43 245.51 250.29 250.48 246.71 11 Hong Kong/dollar 7.7712 7.7402 7.7357 7.7307 7.7272 7.7245 7.7251 7.7353 7.7268 12 India/rupee 22.712 28.156 31.291 31.505 31.434 31.440 31.440 31.449 31.415 13 Ireland/pound2 161.39 170.42 146.47 143.19 140.31 141.82 143.03 141.91 143.40 14 Italy/lira 1,241.28 1,232.17 1,573.41 1,600.93 1,666.31 1,687.17 1,699.45 1,685.96 1,666.63 15 Japan/yen 134.59 126.78 111.08 107.02 107.88 109.91 111.44 106.30 105.10 16 Malay sia/ringgit 2.7503 2.5463 2.5738 2.5478 2.5548 2.5737 2.7160 2.7624 2.7171 17 Netherlands/guilder 1.8720 1.7587 1.8585 1.8438 1.9084 1.9162 1.9516 1.9464 1.9006 18 New Zealand/dollar2 57.832 53.792 54.127 55.260 54.787 55.631 56.263 57.436 57.093 19 Norway/krone 6.4912 6.2142 7.0979 7.1755 7.3882 7.4211 7.5064 7.4885 7.3419 20 Portugal/escudo 144.77 135.07 161.08 169.60 173.93 174.58 176.04 175.15 174.00 21 Singapore/dollar 1.7283 1.6294 1.6158 1.5735 1.5950 1.5975 1.6037 1.5873 1.5819 22 South Africa/rand 2.7633 2.8524 3.2729 3.3924 3.3680 3.3788 3.4107 3.4520 3.4586 23 South Korea/won 736.73 784.58 805.75 813.45 809.79 812.57 813.55 812.24 810.69 24 Spain/peseta 104.01 102.38 127.48 132.18 137.27 140.42 143.04 141.08 138.78 25 Sri Lanka/rupee 41.200 44.013 48.205 48.954 49.187 49.322 49.460 49.113 48.931 26 Sweden/krona 6.0521 5.8258 7.7956 8.0195 8.2660 8.3501 8.1184 7.9869 7.9156 27 Switzerland/franc 1.4356 1.4064 1.4781 1.4432 1.4969 1.4634 1.4716 1.4565 1.4292 28 Taiwan/dollar 26.759 25.160 26.416 26.865 26.884 26.768 26.495 26.440 26.414 29 Thailand/baht 25.528 25.411 25.333 25.269 25.382 25.460 25.543 25.382 25.325 30 United Kingdom/pound 176.74 176.63 150.16 150.23 148.08 149.13 149.23 147.92 149.19 MEMO 31 United States/dollar3 89.84 86.61 93.18 93.29 95.47 95.73 96.54 95.79 94.35 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

A67 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 March 31, 1993 August 1993 A70 June 30, 1993 November 1993 A70 September 30, 1993 February 1994 A70 December 31, 1993 May 1994 A68 Terms of lending at commercial banks May 1993 August 1993 A76 August 1993 November 1993 A76 November 1993 February 1994 A76 February 1994 May 1994 A74 Assets and liabilities of U.S. branches and agencies of foreign banks March 31, 1993 August 1993 A80 June 30, 1993 November 1993 A80 September 30, 1993 February 1994 A80 December 31, 1993 May 1994 A78 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

A68 Special Tables • May 1994 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, December 31, 1993 Millions of dollars except as noted Banks with foreign offices2 Bank o s f f w ic i e th s o d n o l m y estic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets4 3,674,733 2,072,839 489,039 1,679,827 1,250,244 351,649 2 Cash and balances due from depository institutions 271,401 185,962 74,309 111,653 65,378 20,061 3 Cash items in process of collection, unposted debits, and currency and coin 4 79,070 2,110 76,960 34,385 4 4 Cash items in process of collection and unposted debits T n.a. n.a. 58,876 22,314 1 5 Currency and coin i n.a. n.a. 18,083 12,071 i 6 Balances due from depository institutions in the United States n.a. 27,346 17,892 9,453 16,121 n.a. 7 Balances due from banks in foreign countries and foreign central banks 1 59,194 54,215 4,979 2,489 1 8 Balances due from Federal Reserve Banks ¥ 20,353 92 20,262 12,382 • MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. n.a. 7,248 13,143 88,,227744 10 Total securities, loans- and lease-financing receivables, net 3,055,995 1,609,283 n.a. n.a. 1,128,337 318,376 11 Total securities, book value 826,378 354,172 34,436 319,735 353,872 118,335 12 U.S. Treasury securities and U.S. government agency and corporation obligations 652,811 269,545 5,876 263,668 228888,,777722 9944,,449944 N U.S. Treasury securities n.a. 101,193 2,383 98,810 120,421 n.a. 14 U.S. government agency and corporation obligations n.a. 168,352 3,494 164,859 168,351 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 176,342 88,351 3,418 84,933 7700,,223344 1177,,775577 16 All other n.a. 80,001 76 79,925 98,116 n.a. 17 Securities issued by states and political subdivisions in the United States 77,217 21,343 580 20,762 38,023 17,851 18 Other domestic debt securities n.a. 27,736 204 27,531 20,393 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 4,706 2,378 0 2,378 22,,224411 8888 7.0 All other domestic debt securities 47,771 25,358 204 25,154 18,152 44,,226611 21 Foreign debt securities n.a. 28,194 26,546 1,648 378 n.a. 27 Equity securities 15,302 7,354 1,230 6,125 6,306 1,641 73 Marketable 6,710 2,338 357 1,981 3,312 1,060 74 Investments in mutual funds 3,882 757 23 734 2,180 945 75 Other 2,866 1,581 334 1,248 1,149 135 76 LESS: Net unrealized loss 37 0 0 0 17 20 27 Other equity securities 8,592 5,017 873 4,144 2,994 581 28 Federal funds sold and securities purchased under agreements to resell 149,657 88,564 413 88,151 43,770 17,322 7.9 Federal funds sold 122,662 64,754 n.a. n.a. 40,765 17,143 30 Securities purchased under agreements to resell 26,995 23,810 n.a. n.a. 3,006 180 31 Total loans- and lease-financing receivables, gross 2,138,794 1,202,798 215,411 987,387 749,051 186,946 37 LESS: Unearned income on loans 6,475 2,498 876 1,622 2,884 1,092 33 Total loans and leases (net of unearned income) 2,132,320 1,200,300 214,535 985,764 746,167 185,853 34 LESS: Allowance for loan and lease losses 52,187 33,587 n.a. n.a. 15,465 3,134 35 LESS: Allocated transfer risk reserves 172 166 n.a. n.a. 7 0 36 EQUALS: Total loans and leases, net 2,079,961 1,166,547 n.a. n.a. 730,695 182,719 Total loans, gross, by category 37 Loans secured by real estate 911,394 419,998 22,337 397,660 338877,,776611 110033,,663366 38 Construction and land development 4 4 4 32,666 26,655 6,468 39 Farmland T T TI 2,182 7,731 10,934 40 One- to four-family residential properties 1 1 237,430 214,380 55,976 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 39,968 29,803 2,787 47 All other loans 1 1 1 197,463 184,577 53,190 4 4 3 4 M No u n lt f i a fa rm m i n ly o n (f r i e v s e i d o e r n m tia o l r e p ) ro re p s e i r d t e ie n s t ial properties t1 • 1 t1 1 1 1 3 2 , , 1 2 2 5 4 8 1 1 2 3 5, , 1 8 0 9 5 0 2 2 7 , , 3 9 4 1 4 3 45 Loans to depository institutions 44,982 38,664 18,717 19,946 6,013 306 46 Commercial banks in the United States n.a. 17,484 582 16,901 5,426 n.a. 47 Other depository institutions in the United States n.a. 383 34 348 293 n.a. 48 Banks in foreign countries n.a. 20,797 18,100 2,697 294 n.a. 49 Loans to finance agricultural production and other loans to farmers 36,987 5,676 212 5,465 11,924 19,386 50 Commercial and industrial loans 536,078 381,266 95,673 285,593 124,342 30,470 51 U.S. addressees (domicile) n.a. 302,990 20,327 282,662 123,892 n.a. 52 Non-U.S. addressees (domicile) n.a. 78,276 75,345 2,931 450 n.a. 53 Acceptances of other banks 2,147 1,628 1,261 367 368 151 54 U.S. banks n.a. 377 158 219 n.a. n.a. 55 Foreign banks n.a. 1,250 1,103 148 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 416,697 193,131 21,555 171,576 119933,,339999 3300,,116677 57 Credit cards and related plans 153,811 79,366 n.a. n.a. 72,608 1,837 58 Other (includes single payment and installment) 262,885 113,765 n.a. n.a. 120,791 28,329 59 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 21,210 11,176 275 10,901 88,,888800 11,,115544 60 Taxable 1,954 1,324 155 1,169 584 45 61 Tax-exempt 19,256 9,852 120 9,732 8,296 1,108 67 All other loans 132,049 121,419 52,083 69,336 9,481 1,150 63 Loans to foreign governments and official institutions n.a. 20,117 19,311 806 32 n.a. 64 Other loans n.a. 101,302 32,772 68,530 9,449 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 20,818 2,076 n.a. 66 All other loans n.a. n.a. n.a. 47,712 7,373 n.a. 67 Lease-financing receivables 37,251 29,840 3,297 26,543 6,884 527 68 Assets held in trading accounts 122,390 120,542 82,478 37,897 1,698 150 69 Premises and fixed assets (including capitalized leases) 54,966 30,108 i n.a. 19,066 5,793 70 Other real estate owned 16,736 10,662 T n.a. 4,924 1,149 71 Investments in unconsolidated subsidiaries and associated companies 3,559 3,237 1 n.a. 290 31 72 Customers' liability on acceptances outstanding 13,308 12,871 n.a. n.a. 419 18 73 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs ... n.a. n.a. 1 55,301 n.a. n.a. 74 Intangible assets 17,669 11,018 I n.a. 6,200 451 75 Other assets 118,710 89,157 • n.a. 23,933 5,620 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A69 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1—Continued Consolidated Report of Condition, December 31, 1993 Millions of dollars except as noted Banks with domestic Banks with foreign offices offices only3 Total Total Foreign Domestic Over 100 Under 10< 76 Total liabilities, limited-life preferred stock, and equity capital ,674,733 2,072,839 n.a. n.a. 1,250,244 351,649 77 Total liabilities5 ,380,280 1,918,663 489,035 1,525,654 1,144,213 317,404 78 Limited-life preferred stock 4 0 n.a. n.a. 1 2 79 Total deposits ,730,266 1,416,605 329,906 1,086,698 1,004,967 308,695 80 Individuals, partnerships, and corporations 202,884 1,010,118 937,943 283,170 81 U.S. government - 5,344 2,583 548 82 States and political subdivisions in the United States 30,377 44,342 20,192 83 Commercial banks in the United States n.a. n.a. n.a. 20,438 8,050 1,171 84 Other depository institutions in the United States 3,435 4,533 1,358 85 Banks in foreign countries < 5,998 226 n.a. 86 Foreign governments and official institutions 28,805 27,738 1,066 53 n.a. 87 Certified and official checks 20,179 10,737 814 9,922 7,236 2,206 88 Mother6 n.a. n.a. 98,469 n.a. n.a. 50 89 Total transaction accounts 430,297 322,772 95,910 90 Individuals, partnerships, and corporations 372,202 288,772 84,651 91 U.S. government 4,993 2,242 433 92 States and political subdivisions in the United States 14,833 17,382 7,862 93 Commercial banks in the United States 19,330 5,644 555 94 Other depository institutions in the United States 2,562 1,280 166 95 Banks in foreign countries 5,706 199 n.a. 96 Foreign governments and official institutions 749 17 n.a. 97 Certified and official checks 9,922 7,236 2,206 98 All other n.a. n.a. 36 99 Demand deposits (included in total transaction accounts) 309,182 180,591 46,541 100 Individuals, partnerships, and corporations 257,604 157,873 41,300 101 U.S. government 4,702 2,208 416 102 States and political subdivisions in the United States 8,613 6,180 1,874 103 Commercial banks in the United States 19,330 5,607 550 104 Other depository institutions in the United States n.a. n.a. n.a. 2,561 1,270 163 105 Banks in foreign countries 5,702 199 n.a. 106 Foreign governments and official institutions 748 17 n.a. 107 Certified and official checks 9,922 7,236 2,206 108 All other n.a. n.a. 31 109 Total nontransaction accounts 656,401 682,194 212,784 110 Individuals, partnerships, and corporations 637,917 649,171 198,519 111 U.S. government 351 341 114 112 States and political subdivisions in the United States 15,544 26,961 12,329 113 Commercial banks in the United States 1,107 2,407 616 114 U.S. branches and agencies of foreign banks 90 452 n.a. 115 Other commercial banks in the United States 1,017 1,954 n.a. 116 Other depository institutions in the United States 873 3,253 1,192 117 Banks in foreign countries 291 26 n.a. 118 Foreign branches of other U.S. banks 7 0 n.a. 119 Other banks in foreign countries 285 26 n.a. 120 Foreign governments and official institutions 318 36 n.a. 121 All other n.a. n.a. 14 122 Federal funds purchased and securities sold under agreements to repurchase 272,100 196,473 277 196,195 72,088 3,540 123 Federal funds purchased 176,989 136,172 n.a. n.a. 39,438 1,379 124 Securities sold under agreements to repurchase 95,112 60,301 n.a. n.a. 32,650 2,161 125 Demand notes issued to the U.S. Treasury n.a. n.a. n.a. 28,520 6,096 333 126 Other borrowed money 184,551 140,269 59,228 81,041 42,298 1,985 127 Banks' liability on acceptances executed and outstanding 13,402 12,965 3,177 9,789 419 18 128 Notes and debentures subordinated to deposits 37,139 34,760 n.a. n.a. 2,340 39 129 Net owed to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n a. n.a. n.a. 40,725 n.a. n.a. 130 All other liabilities 107,872 89,072 n.a. n.a. 16,006 2,794 131 Total equity capital7 294,449 154,176 n.a. n.a. 106,030 34,243 MEMO 132 Holdings of commercial paper included in total loans, gross 575 119 456 878 n.a. 133 Total individual retirement (IRA) and Keogh plan accounts 62,794 64,877 17,039 134 Total brokered deposits 22,443 15,847 634 135 Total brokered retail deposits 16,172 13,143 608 136 Issued in denominations of $100,000 or less 1,116 3,265 549 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 15,057 9,877 59 138 Money market deposit accounts (savings deposits; MMDAs) 244,439 173,211 38,161 139 Other savings deposits (excluding MMDAs) 135,624 135,858 40,603 140 Total time deposits of less than $100,000 190,260 288 107,633 141 Time certificates of deposit of $100,000 or more 73,388 82,385 25,464 142 Open-account time deposits of $100,000 or more 12,691 2,695 925 143 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 120,225 139,686 48,085 144 Total time and savings deposits n a. n. a. n a. 777,516 824,376 262,154 Quarterly averages 942,546 724,883 182,682 145 Total loans 146 Obligations (other than securities) of states and political subdivisions 11,607 8,957 n.a. in the United States 147 Transaction accounts in domestic offices (NOW accounts, automated transfer service 116,582 136,898 47,884 (ATS) accounts, and telephone and preauthorized transfer accounts) Nontransaction accounts in domestic offices 248,052 175,332 38,179 148 Money market deposit accounts 133,704 134,088 40,098 149 Other savings deposits 78,765 82,330 25,010 150 Time certificates of deposit of $100,000 or more 211,480 294,051 109,189 151 All other time deposits 152 Number of banks 10,922 210 n.a. n.a. 2,807 7,905 Digitized for FRFAooStnEotRes appear at the end of table 4.22 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • May 1994 4.21 DOMESTIC OFFICES Insured Commercial Banks with Assets of $100 Million or More or With Foreign Offices1 Consolidated Report of Condition, December 31, 1993 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets4 2,930,071 2,295,573 1,769,915 525,658 634,498 ? Cash and balances due from depository institutions 177,031 147,900 116,935 30,965 29,130 Cash items in process of collection and unposted debits 81,191 72,589 57,845 14,745 8,601 4 Currency and coin 30,154 24,944 19,903 5,040 5,210 Balances due from depository institutions in the United States 25,575 16,986 13,817 3,170 8,588 6 Balances due from banks in foreign countries and foreign central banks 7,468 6,896 6,388 508 572 7 Balances due from Federal Reserve Banks 32,644 26,485 18,982 7,503 6,159 8 Total securities, loans- and lease-financing receivables (net of unearned income) 2,537,460 1,960,177 1,536,992 423,185 577,283 9 Total securities, book value 673,607 510,692 380,202 130,490 162,915 10 U.S. Treasury securities 219,231 161,799 124,546 37,253 57,431 11 U.S. government agency and corporation obligations 333,209 259,891 192,112 67,779 73,319 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 115555,,116677 127,340 9922,,443333 3344,,990077 2277,,882277 n Allother 178,042 132,550 99,678 32,872 45,491 14 Securities issued by states and political subdivisions in the United States 58,785 40,920 29,010 11,910 17,865 15 Other domestic debt securities 47,924 37,479 26,462 11,017 10,446 16 All holdings of private certificates of participation in pools of residential mortgages 4,618 3,863 3,039 824 756 17 All other domestic debt securities 43,306 33,616 23,423 10,193 9,690 18 Foreign debt securities 2,026 1,550 1,223 327 476 19 Equity securities 12,431 9,053 6,849 2,203 3,379 70 Marketable 5,294 2,929 1,978 951 2,365 71 Investments in mutual funds 2,914 1,423 1,246 177 1,491 77 Other 2,397 1,511 736 775 886 73 LESS: Net unrealized loss 17 5 4 1 12 24 Other equity securities 7,138 6,124 4,871 1,253 1,014 75 Federal funds sold and securities purchased under agreements to resell8 131,921 109,446 82,319 27,128 22,475 76 Federal funds sold 40,765 25,678 21,027 4,650 15,087 7,7 Securities purchased under agreements to resell 3,006 1,969 1,704 265 1,036 28 Total loans and lease-financing receivables, gross 1,736,438 1,342,931 1,076,705 266,226 393,507 79 LESS: Unearned income on loans 4,507 2,893 2,234 659 1,614 30 Total loans and leases (net of unearned income) 1,731,931 1,340,038 1,074,471 265,567 391,893 Total loans, gross, by category 31 Loans secured by real estate 785,421 586,819 447755,,004455 111111,,777744 119988,,660022 3? Construction and land development 59,321 43,983 35,268 8,715 15,337 33 Farmland 9,913 5,904 4,940 965 4,009 34 One- to four-family residential properties 451,811 348,022 282,484 65,538 103,789 35 Revolving, open-end and extended under lines of credit 69,771 54,382 43,633 10,749 15,389 36 All other loans 382,040 293,640 238,851 54,789 88,400 37 Multifamily (five or more) residential properties 27,013 19,026 15,435 3,591 7,988 38 Nonfarm nonresidential properties 237,363 169,884 136,919 32,965 67,479 39 Commercial banks in the United States 22,328 18,527 15,230 3,297 3,801 40 Other depository institutions in the United States 641 370 287 83 271 41 Banks in foreign countries 2,991 2,744 1,348 1,396 247 42 Loans to finance agricultural production and other loans to fanners 17,389 12,004 10,360 1,644 5,385 43 Commercial and industrial loans 409,935 334,694 267,876 66,818 75,241 44 U.S. addressees (domicile) 406,554 331,622 265,331 66,291 74,932 45 Non-U.S. addressees (domicile) 3,381 3,072 2,545 527 309 46 Acceptances of other banks9 735 401 329 72 334 47 U.S. banks 372 183 134 49 189 48 Foreign banks 232 198 183 15 34 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 364,975 270,644 221,353 49,291 9944,,333311 50 Credit cards and related plans 72,608 49,904 46,240 3,664 22,704 51 Other (includes single-payment and installment loans) 120,791 74,594 59,649 14,945 46,197 52 Loans to foreign governments and official institutions 838 829 739 90 9 53 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 19,781 16,082 11,900 44,,118833 33,,669999 54 Taxable 1,753 1,489 982 507 264 55 Tax-exempt 18,028 14,593 10,917 3,676 3,436 56 Other loans 77,979 71,694 49,763 21,931 6,285 57 Loans for purchasing and carrying securities 22,894 20,799 12,301 8,499 2,095 58 All other loans 55,085 50,894 37,462 13,432 4,191 59 Lease-financing receivables 33,427 28,125 22,477 5,648 5,302 60 Customers' liability on acceptances outstanding 10,123 9,480 7,010 2,470 644 61 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 55,301 48,682 17,692 30,989 6,620 62 Remaining assets 205,457 178,016 108,977 69,039 27,441 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.21 DOMESTIC OFFICES Insured Commercial Banks with Assets of $100 Million or More or With Foreign Offices1—Continued Consolidated Report of Condition, December 31, 1993 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 63 Total liabilities and equity capital 2,930,071 2,295,573 1,769,915 525,658 634,498 64 Total liabilities5 2,669,867 2,091,925 1,615,055 476,869 577,943 65 Total deposits 2,091,665 1,613,722 1,271,759 341,%3 477,943 66 Individuals, partnerships, and corporations 1,948,061 1,502,351 1,186,112 316,239 445,711 67 U.S. government 7,928 6,753 5,425 1,328 1,175 68 States and political subdivisions in the United States 74,719 54,128 42,210 11,918 20,591 69 Commercial banks in the United States 28,488 25,170 20,011 5,159 3,318 70 Other depository institutions in the United States 7,968 5,070 4,097 973 2,898 71 Banks in foreign countries 6,223 5,746 3,277 2,469 477 7? Foreign governments and official institutions 1,120 916 532 384 204 73 Certified and official checks 17,158 13,589 10,095 3,494 3,569 74 Total transaction accounts 753,069 603,790 472,469 131,321 149,279 75 Individuals, partnerships, and corporations 660,974 526,534 413,126 113,408 134,440 76 U.S. government 7,235 6,188 4,977 1,211 1,047 77 States and political subdivisions in the United States 32,214 24,605 19,284 5,321 7,609 78 Commercial banks in the United States 24,974 23,553 19,027 4,526 1,421 79 Other depository institutions in the United States 3,842 3,053 2,374 679 788 80 Banks in foreign countries 5,906 5,553 3,182 2,371 353 81 Foreign governments and official institutions 766 713 403 310 53 82 Certified and official checks 17,158 13,589 10,095 3,494 3,569 83 Demand deposits (included in total transaction accounts) 489,773 401,476 307,823 93,653 88,297 84 Individuals, partnerships, and corporations 415,477 337,049 259,086 77,%3 78,428 85 U.S. government 6,910 5,876 4,671 1,205 1,034 86 States and political subdivisions in the United States 14,794 12,105 8,999 3,106 2,689 87 Commercial banks in the United States 24,936 23,542 19,017 4,525 1,394 88 Other depository institutions in the United States 3,831 3,049 2,370 679 782 89 Banks in foreign countries 5,902 5,553 3,182 2,371 349 90 Foreign governments and official institutions 765 713 403 310 52 91 Certified and official checks 17,158 13,589 10,095 3,494 3,569 9? Total nontransaction accounts 1,338,5% 1,009,933 799,290 210,642 328,663 93 Individuals, partnerships, and corporations 1,287,088 975,816 772,986 202,831 311,271 94 U.S. government 692 565 448 117 127 95 States and political subdivisions in the United States 42,505 29,523 22,926 6,597 12,982 % Commercial banks in the United States 3,514 1,616 984 633 1,898 97 U.S. branches and agencies of foreign banks 542 88 62 26 454 98 Other commercial banks in the United States 2,972 1,528 922 607 1,443 99 Other depository institutions in the United States 4,126 2,017 1,722 294 2,110 100 Banks in foreign countries 317 193 % 97 124 101 Foreign branches of other U.S. banks 7 3 3 0 3 102 Other banks in foreign countries 311 190 93 97 121 103 Foreign governments and official institutions 354 203 129 74 151 104 Federal funds purchased and securities sold under agreements to repurchase10 268,283 223,446 160,624 62,823 44,836 105 Federal funds purchased 39,438 29,919 25,497 4,421 9,519 106 Securities sold under agreements to repurchase 32,650 20,658 16,177 4,481 11,991 107 Demand notes issued to the U.S. Treasury 34,617 31,750 20,387 11,363 2,866 108 Other borrowed money 123,339 93,231 68,600 24,631 30,108 109 Banks liability on acceptances executed and outstanding 10,207 9,563 7,058 2,505 644 110 Notes and debentures subordinated to deposits 2,340 1,717 1,541 176 623 111 Net owed to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 40,725 30,365 26,733 3,632 10,361 112 Remaining liabilities 139,417 118,494 85,086 33,408 20,923 113 260,204 203,648 154,860 48,789 56,555 MEMO 114 Holdings of commercial paper included in total loans, gross 1,334 330 320 10 11,,000044 115 Total individual retirement (IRA) and Keogh plan accounts 127,671 99,040 80,161 18,878 28,631 116 Total brokered deposits 38,289 26,140 20,914 5,227 12,149 117 Total brokered retail deposits 29,315 19,833 16,379 3,454 9,482 118 Issued in denominations of $100,000 or less .. 4,381 3,048 2,822 226 1,333 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 24,934 16,785 13,557 3,228 8,149 120 Money market deposit accounts (savings deposits; MMDAs) 417,651 331,552 262,412 69,140 86,098 171 Other savings accounts 271,482 205,222 151,264 53,958 66,260 177 Total time deposits of less than $100,000 478,305 352,703 289,236 63,466 125,602 173 Time certificates of deposit of $100,000 or more 155,772 107,902 89,631 18,271 47,870 174 Open-account time deposits of $100,000 or more 15,386 12,554 6,746 5,808 2,832 175 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 259,911 200,443 163,025 37,417 59,468 126 Total time and savings deposits 1,601,891 1,212,246 %3,936 248,311 389,645 Quarterly averages 177 1,667,429 1,289,382 1,032,191 257,191 337788,,004477 128 Obligations (other than securities) of states and political subdivisions in the United States 20,564 16,784 12,160 4,624 3,780 179 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone preauthorized transfer accounts) 253,480 194,595 157,505 37,090 5588,,888855 Nontransaction accounts NO Money market deposit accounts 423,384 336,059 265,164 70,8% 87,324 131 Other savings deposits 267,793 202,261 148,494 53,768 65,531 137, Time certificates of deposits of $100,000 or more 161,095 113,675 94,504 19,171 47,419 133 All other time deposits 505,530 376,419 304,163 72,256 129,111 134 Number of banks 3,017 1,592 1,292 300 1,425 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • May 1994 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, December 31, 1993 Millions of dollars except as noted Members NNoonn-- IItteemm mmeemmbbeerrss Total National State 1 Total assets4 3,281,720 2,428,820 1,870,612 558,208 852,900 2 Cash and balances due from depository institutions 197,092 155,708 122,954 32,753 41,384 3 Currency and coin 33,272 26,127 20,814 5,312 7,145 4 Non-interest-bearing balances due from commercial banks 28,664 16,470 13,147 3,323 12,194 5 Other 135,156 113,111 88,993 24,118 22,045 6 Total securities, loans, and lease-financing receivables (net of unearned income) 2,858,969 2,081,544 1,628,457 453,087 777,425 7 Total securities, book value 791,941 556,376 415,829 140,548 235,565 8 U.S. Treasury securities and U.S. government agency and corporation obligations 646,934 458,859 345,833 113,026 188,075 9 Securities issued by states and political subdivisions in the United States 76,637 47,170 33,781 13,389 29,466 10 Other debt securities 54,299 40,557 28,781 11,776 13,742 11 All holdings of private certificates of participation in pools of residential mortgages 4,706 3,891 3,056 835 815 12 All other 49,593 36,666 25,725 10,941 12,926 13 Equity securities 14,072 9,790 7,434 2,356 4,282 14 Marketable 6,353 3,332 2,312 1,019 3,022 15 Investments in mutual funds 3,859 1,798 1,559 239 2,061 16 Other 2,532 1,546 763 783 986 17 LESS: Net unrealized loss 37 12 10 2 25 18 Other equity securities 7,719 6,458 5,121 1,337 1,260 19 Federal funds sold and securities purchased under agreements to resell 149,243 116,494 87,447 29,046 32,750 20 Federal funds sold 57,907 32,679 26,121 6,559 25,228 21 Securities purchased under agreements to resell 3,185 2,015 1,740 275 1,171 22 Total loans and lease financing receivables, gross 1,923,384 1,411,992 1,127,728 284,265 511,391 23 LESS: Unearned income on loans 5,599 3,318 2,547 771 2,281 24 Total loans and leases (net of unearned income) 1,917,785 1,408,674 1,125,181 283,494 509,110 Total loans, gross, by category 25 Loans secured by real estate 889,057 624,927 502,959 121,968 226644,,113300 26 Construction and land development 65,789 46,409 37,007 9,402 19,380 20,847 9,333 7,604 1,729 11,514 28 One- to four-family residential properties 507,787 368,960 297,663 71,297 138,827 29 Revolving, open-end loans, and extended under lines of credit 72,557 55,525 44,380 11,145 17,032 30 All other loans 435,229 313,435 253,283 60,152 121,794 31 Multifamily (five or more) residential properties 29,358 19,916 16,108 3,808 9,442 32 Nonfarm nonresidential properties 265,276 180,308 144,577 35,731 84,968 33 Loans to depository institutions 26,265 21,850 17,029 4,821 4,416 34 Loans to finance agricultural production and other loans to farmers 36,775 18,501 15,417 3,085 18,273 35 Commercial and industrial loans 440,405 346,528 276,438 70,090 93,877 36 Acceptances of other banks 885 435 359 77 450 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 395,142 281,952 229,865 52,087 111133,,119900 38 Credit cards and related plans 74,445 50,631 46,843 3,787 23,814 39 Other (includes single payment installment) 149,120 85,175 67,558 17,617 63,945 40 Obligations (other than securities) of states and political subdivisions in the United States 20,935 16,476 12,206 4,270 4,459 1,798 1,505 993 512 293 19,137 14,971 11,212 3,759 4,166 79,966 73,024 50,837 22,186 6,943 44 Lease-financing receivables 33,954 28,300 22,619 5,682 5,654 45 Customers' liability on acceptances outstanding 10,142 9,493 7,021 2,472 649 46 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 55,301 48,682 17,692 30,989 6,620 215,517 182,075 112,180 69,895 33,442 48 Total liabilities and equity capital 3,281,720 2,428,820 1,870,612 558,208 852,900 49 Total liabilities5 2,987,272 2,212,349 1,706,025 506,324 774,923 2,400,360 1,730,525 1,360,009 370,516 669,835 51 Individuals, partnerships, and corporations 2,231,231 1,609,916 1,267,550 342,366 621,316 8,475 6,991 5,605 1,386 1,484 53 States and political subdivisions in the United States 94,911 61,154 47,720 13,434 33,757 54 Commercial banks in the United States 29,659 25,867 20,221 5,646 3,792 55 Other depository institutions in the United States 9,326 5,444 4,346 1,098 3,882 56 Certified and official checks 19,364 14,466 10,751 3,715 4,898 57 All other 7,393 6,687 3,816 2,871 706 58 Total transaction accounts 848,979 641,349 501,048 140,301 207,630 59 Individuals, partnerships, and corporations 745,625 559,681 438,546 121,136 185,943 60 U.S. government 7,669 6,366 5,115 1,251 1,303 61 States and political subdivisions in the United States 40,077 27,375 21,519 5,856 12,701 62 Commercial banks in the United States 25,529 24,046 19,094 4,953 1,483 63 Other depository institutions in the United States 4,008 3,125 2,432 693 883 64 Certified and official checks 19,364 14,466 10,751 3,715 4,898 65 All other 6,708 6,290 3,591 2,698 418 66 Demand deposits (included in total transaction accounts) 536,315 420,140 321,711 98,429 116,175 67 Individuals, partnerships, and corporations 456,777 353,437 271,518 81,919 103,341 68 U.S. government 7,326 6,052 4,807 1,245 1,275 69 States and political subdivisions in the United States 16,668 12,750 9,538 3,213 3,917 70 Commercial banks in the United States 25,487 24,031 19,080 4,951 1,456 71 Other depository institutions in the United States 3,994 3,120 2,427 692 874 72 Certified and official checks 19,364 14,466 10,751 3,715 4,898 73 All other 6,698 6,285 3,591 2,694 414 74 Total nontransaction accounts 1,551,380 1,089,175 858,961 230,215 462,205 75 Individuals, partnerships, and corporations 1,485,606 1,050,234 829,004 221,230 435,372 76 U.S. government 806 625 490 135 181 77 States and political subdivisions in the United States 54,834 33,778 26,201 7,577 21,055 78 Commercial banks in the United States 4,130 1,821 1,127 694 2,309 79 Other depository institutions in the United States 5,318 2,319 1,914 405 2,999 80 All other 686 397 224 173 288 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities1—Continued Consolidated Report of Condition, December 31, 1993 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase10 271,823 225,033 161,699 63,335 46,790 82 Federal funds purchased 40,817 30,550 25,844 4,707 10,266 83 Securities sold under agreements to repurchase 34,811 21,614 16,906 4,708 13,198 84 Demand notes issued to the U.S. Treasury 34,950 31,868 20,477 11,391 3,081 85 Other borrowed money 125,323 93,892 69,128 24,764 31,431 86 Banks liability on acceptances executed and outstanding 10,226 9,577 7,069 2,507 649 87 Notes and debentures subordinated to deposits 2,379 1,729 1,547 181 651 88 Net owed to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 40,725 30,365 26,733 3,632 10,361 89 Remaining liabilities 142,211 119,726 86,0% 33,629 22,486 90 Total equity capital7 294,449 216,471 164,587 51,884 77,978 MEMO 91 Assets held in trading accounts 39,744 38,587 25,270 13,317 1,158 92 U.S. Treasury securities 16,597 16,409 11,494 4,915 188 93 U.S. government agency corporation obligations 6,361 6,199 4,325 1,874 161 94 Securities issued by states and political subdivisions in the United States 1,138 1,095 569 526 42 95 Other bonds, notes, and debentures 1,463 1,440 852 588 23 96 Certificates of deposit 1,790 1,655 1,166 489 135 97 Commercial paper 97 97 97 0 0 98 Bankers acceptances 2,548 2,439 1,636 803 109 99 Other 9,035 9,032 4,945 4,087 3 100 Total individual retirement (IRA) and Keogh plan accounts 144,710 105,215 84,869 20,346 39,495 101 Total brokered deposits 38,924 26,327 21,059 5,269 12,5% 102 Total brokered retail deposits 29,922 20,008 16,518 3,491 9,914 103 Issued in denominations of $100,000 or less 44,,992299 33,,220055 22,,994455 259 1,725 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 24,993 16,804 13,572 3,231 8,189 Savings deposits 105 Money market deposit accounts (savings deposits; MMDAs) 455,812 346,852 273,861 72,991 108,959 106 Other savings deposits 312,085 221,256 163,153 58,103 90,828 107 Total time deposits of less than $100,000 585,937 390,819 318,133 72,686 195,118 108 Time certificates of deposit of $100,000 or more 181,236 117,409 %,846 20,563 63,827 109 Open-account time deposits of $100,000 or more 16,311 12,838 6,%7 5,872 3,473 110 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 307,996 218,869 177,393 41,476 89,127 Ill Total time and savings deposits 1,864,045 1,310,384 1,038,297 272,087 553,661 Quarterly averages 112 Total loans 11,,885500,,111111 11,,335566,,776699 11,,008822,,003355 227744,,773355 449933,,334411 113 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone and preauthorized transfer accounts) 301,364 212,886 171,728 41,158 88,478 Nontransaction accounts 114 Money market deposit accounts 461,563 351,412 276,698 74,714 110,151 115 Other savings deposits 307,890 218,125 160,278 57,847 89,766 116 Time certificates of deposit of $100,000 or more 186,105 123,057 101,638 21,420 63,047 117 All other time deposits 614,719 414,994 333,439 81,554 199,726 118 Number of banks 10,922 4,281 3,315 966 6,641 1. Effective March 31, 1984, the report of condition for commercial banks was FFIEC 033 Call Report.) "Under 100" refers to banks whose assets, on June 30 substantially revised. Some of the changes are as follows: (1) Previously, banks of the preceding calendar year, were less than $100 million. (These banks file the with international banking facilities (IBFs) that had no other foreign offices were FFIEC 034 Call Report.) considered domestic reporters. Beginning with the March 31, 1984, Call Report 4. Because the domestic portion of allowances for loan and lease losses and these banks are considered foreign and domestic reporters and must file the allocated transfer risk reserves are not reported for banks with foreign offices, the foreign and domestic report of condition. (2) Banks with assets of more than $1 components of total assets (domestic) do not sum to the actual total (domestic). billion report additional items. (3) The domestic offices of banks with foreign 5. Because the foreign portion of demand notes issued to the U.S. Treasury is offices report far less detail. (4) Banks with assets of less than $25 million are not reported for banks with foreign offices, the components of total liabilities excused from reporting certain detail items. (foreign) do not sum to the actual total (foreign). The notation "n.a." indicates the lesser detail available from banks that don't 6. The definition of "all other" varies by report form and therefore by column have foreign offices, the inapplicability of certain items to banks that have only in this table. domestic offices or the absence of detail on a fully consolidated basis for banks 7. Equity capital is not allocated between the domestic and foreign offices of that have foreign offices. banks with foreign offices. All transactions between domestic and foreign offices of a bank are reported in 8. Only the domestic portion of federal funds sold and securities purchased "net due from" and "net due to" lines. All other lines represent transactions with under agreements to resell are reported here; therefore, the components do not parties other than the domestic and foreign offices of each bank. Because these sum to totals. intraoffice transactions are nullified by consolidation, total assets and total 9. Acceptances of other banks is not reported by domestic banks having less liabilities for the entire bank may not equal the sum of assets and liabilities than $300 million in total assets; therefore the components do not sum to totals. respectively of the domestic and foreign offices. 10. Only the domestic portion of federal fUnds purchased and securities sold 2. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. under agreements to repurchase are reported here; therefore the components do territories and possessions; subsidiaries in foreign countries; all offices of Edge not sum to totals. Act and agreement corporations wherever located; and IBFs. 11. Components are reported only for banks with total assets of $1 billion or 3. "Over 100" refers to banks whose assets, on June 30 of the preceding more; therefore, components do not sum to totals. calendar year, were $100 million or more. (These banks file the FFIEC 032 or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • May 1994 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 19941 Commercial and Industrial Loans Amount of Average W av e e ig ra h g te e d Loan rate (percent) s L ec o u a r n e s d L m o a a d n e s Partici- Characteristic ( o t f h o l d o u o a s l n l a s a n r d s s ) ( o t f h o d s u o iz s l e l a a n r d s) s maturity2 W av e e ig ra h g te e d Standard coll b a y te ral co u m m n e d m n e t r i t- (p p l e a o r t a c i n e o s n n t) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 9,723,522 3.86 .26 7.9 54.8 2 One month or less (excluding overnight) 9,712,303 1,301 4.13 16.7 71.2 10.1 3 Fixed rate 7,193,796 1,977 3.99 13.3 68.5 11.2 4 Floating rate 2,518,507 659 4.52 26.5 79.1 7.0 5 More than one month and less than one year 8,860,720 177 157 5.20 40.7 80.2 3.2 6 Fixed rate 3,306,361 163 127 4.58 32.8 75.7 4.1 7 Floating rate 5,554,359 186 175 5.58 45.4 82.9 2.7 8 Demand7 14,664,521 296 5.22 61.3 62.4 4.1 9 Fixed rate 4,155,700 803 4.08 23.3 73.8 6.0 10 Floating rate 10,508,821 237 5.67 76.3 57.9 3.3 11 Total short-term 42,961,066 394 4.66 34.9 66.4 12 Fixed rate (thousands of dollars) .. 24,379,379 788 28 4.03 15.5 64.9 6.4 13 1-99 383,527 15 140 7.% 87.0 45.1 .7 14 100-499 409,646 218 118 6.01 73.0 53.4 4.6 15 500-999 406,331 687 57 5.15 56.8 78.6 7.8 16 1,000-4,999 3,567,810 2,365 32 4.42 26.4 76.8 8.6 17 5,000-9,999 3,801,297 6,521 26 4.09 16.3 66.3 8.6 18 10,000 or more 15,810,767 20,676 23 3.75 8.6 62.3 5.5 19 Floating rate (thousands of dollars) 18,581,687 238 127 5.49 60.3 68.3 3.6 20 1-99 1,491,128 25 160 7.49 83.9 84.7 1.6 21 100-499 2,780,629 199 159 6.92 78.3 89.2 3.5 22 500-999 1,215,746 666 171 6.42 72.9 88.0 7.3 23 1,000-4,999 3,368,769 2,010 136 5.91 62.4 84.2 7.9 24 5,000-9,999 1,735,765 6,714 102 5.23 48.2 70.7 4.2 25 10,000 or more 7,989,649 25,484 111 4.35 49.5 47.7 1.6 Months 26 Total long-term 4,605,265 197 5.85 57.1 81.4 7.8 27 Fixed rate (thousands of dollars) .. 1,093,082 101 5.41 59.0 67.7 1.8 28 1-99 177,348 18 7.35 93.9 24.7 .1 29 100-499 119,421 206 6.88 87.5 45.4 1.9 30 500-999 84,362 705 6.14 46.8 44.7 4.9 31 1,000 or more 711,951 4,628 4.60 47.0 84.8 1.9 32 Floating rate (thousands of dollars) 3,512,183 278 5.98 56.5 85.7 9.7 33 1-99 243,334 28 7.64 87.4 55.9 4.8 34 100-499 608,197 222 7.15 78.9 77.0 9.4 35 500-999 429,622 681 6.59 57.6 85.3 13.6 36 1,000 or more 2,231,029 4,007 5.37 46.7 91.4 9.5 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 9,389,738 8,662 3.77 3.75 5.9 53.9 4.0 38 One month or less (excluding overnight) 9,193,051 4,0% 20 3.97 3.95 13.7 70.4 10.0 39 More than one month and less than one vear 5,496,596 692 144 4.09 4.07 22.4 84.0 3.2 40 Demand7 8,676,195 3,129 4.00 3.% 50.2 44.7 3.4 41 Total short-term 32,755,579 2,333 3.94 3.92 22.6 42 Fixed rate 23,205,600 3,156 26 3.88 3.86 12.5 65.0 6.5 43 Floating rate 9,549,979 1,428 103 4.09 4.05 47.3 51.7 2.6 Months 44 Total long-term 2,023,276 700 37 4.35 4.30 31.3 89.8 5.1 45 Fixed rate 668,527 398 4.27 4.23 39.8 85.8 2.7 46 Floating rate .. 1,354,749 1,122 4.39 4.33 27.2 91.8 6.4 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A75 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 1994—Continued Commercial and industrial loans—Continued Weighted Loan rate (percent) Loans Loans Characteristic A (th m o ll o oo u aa u s nn n a ss t n d o s f (t AA ho vv s u ee iz rr s aa e a gg n ee d s mm a aa v tt e uu r rr a ii g ttyy e 22 WWeeiigghhtteedd Standard c s o e l c l h• a u yv t r e e r d a l co uu m m nn a dd m d ee e rr i t- PP pp l aa aa o rr tt a tt ii ii n oo cc s nn ii -of dollars) of dollars) Days e a f v fe e c r t a i g v e e 3 error4 (percent) (p m er e c n e t n t) (percent) LARGE BANKS 1 Overnight6 7,351,768 6,875 * 3.91 .21 8.9 56.0 3.8 2 One month or less (excluding overnight) 6,004,688 3,862 19 4.13 .15 20.2 84.9 14.9 3 Fixed rate 4,635,075 5,209 18 4.02 .15 15.6 83.0 16.6 4 Floating rate 1,369,612 2,060 22 4.51 .24 35.7 91.3 9.2 5 More than one month and less than one year 4,860,269 917 147 4.78 .14 34.5 87.9 4.9 6 Fixed rate 2,106,497 2,646 127 4.08 .20 26.1 90.6 5.7 7 Floating rate 2,753,772 611 163 5.32 .17 40.9 85.9 4.4 8 Demand7 9,868,749 562 * 4.96 .16 62.9 54.0 3.3 9 Fixed rate 2,835,429 2,792 * 4.05 .28 21.2 76.8 6.8 10 Floating rate 7,033,320 425 * 5.33 .14 79.7 44.8 1.9 11 Total short-term 28,085,473 1,102 46 4.48 .13 34.7 67.0 6.2 12 Fixed rate (thousands of dollars) ... 16,928,769 4,490 25 3.98 .17 14.9 71.2 8.0 13 1-99 24,791 31 87 6.54 .22 73.8 68.2 1.5 14 100-499 136,284 252 48 5.34 .21 56.8 78.3 6.2 15 500-999 271,656 695 36 5.14 .11 56.8 83.4 10.1 16 1,000-4,999 2,499,143 2,410 30 4.51 .09 30.6 81.5 9.6 17 5,000-9,999 2,764,191 6,602 22 4.12 .07 14.4 65.4 9.1 18 10,000 or more 11,232,703 19,246 25 3.78 .04 9.9 69.9 7.4 19 Floating rate (thousands of dollars). 11,156,705 514 116 5.23 .15 64.7 60.6 3.4 20 1-99 451,282 33 145 7.17 .06 85.1 92.9 1.6 21 100-499 1,144,661 202 155 6.78 .05 76.3 93.4 3.7 22 500-999 589,462 655 160 6.37 .08 70.1 90.0 8.0 23 1,000-4,999 1,808,557 1,991 118 5.74 .20 54.2 83.3 8.7 24 5,000-9,999 1,324,233 6,783 104 5.18 .32 48.4 69.4 2.3 25 10,000 or more 5,838,509 25,868 108 4.51 .34 67.3 39.7 1.6 Months 26 Total long-term 2,706,300 738 36 5.41 .16 49.8 92.8 7.5 27 Fixed rate (thousands of dollars) .. 523,464 1,133 39 4.71 .30 59.9 88.2 2.1 28 1-99 5,435 27 44 7.54 .22 74.7 59.1 .0 29 100-499 27,190 230 39 5.83 .37 71.1 86.7 4.6 30 500-999 31,899 666 42 5.16 .49 49.8 91.6 2.9 31 1,000 or more 458,939 4,979 39 4.58 .19 59.8 88.4 2.0 32 Floating rate (thousands of dollars) 2,182,836 681 36 5.58 .15 47.4 94.0 8.8 33 1-99 47,942 34 30 6.80 .13 84.8 90.8 3.3 34 100-499 243,739 226 33 6.77 .09 74.3 87.9 8.5 35 500-999 204,858 644 31 6.45 .07 66.8 89.6 8.3 36 1,000 or more 1,686,297 4,459 37 5.27 .39 40.0 95.4 9.0 Loan rate (percent) DDaayyss Effective3 Nominal8 LOANS MADE BELOW PRIME1" 37 Overnight6 7,075,889 8,794 * 3.82 3.79 7.0 54.6 4.0 38 One month or less (excluding overnight) 5,755,804 5,528 19 4.03 4.02 17.6 84.6 15.3 39 More than one month and less than one vear 3,442,019 3,551 137 3.99 3.97 23.9 89.5 4.7 40 Demand7 6,673,181 5,415 * 4.00 3.96 58.8 38.6 3.2 41 Total short-term 22,946,893 5,669 36 3.95 3.93 27.3 62.7 6.7 42 Fixed rate 16,346,979 6,049 25 3.90 3.88 13.1 70.7 8.1 43 Floating rate 6,599,914 4,907 93 4.08 4.03 62.4 42.9 3.4 Months 44 Total long-term 1,424,879 3,128 36 4.19 4.13 27.7 97.1 5.1 45 Fixed rate 393,333 2,484 36 4.12 4.10 50.0 91.3 2.3 46 Floating rate .. 1,031,546 3,471 36 4.22 4.15 19.2 99.3 6.2 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • May 1994 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 19941—Continued Commercial and industrial loans—Continued Characteristic ( A o t f h m o l d o o u o a u s l n n l a a s t n r d s o ) s f ( o t f A h o v d s u e o iz s r l e l a a a g n r e d s ) s W m a a v D e t e i u a g r r y a h i s g t t e y e d 2 W e a f v f L e e e i o g c r a t a h n i g t v e e e r d a 3 te (p S e t r a c n en d t a ) r d c ( s p o L e e l c l o r b a u c a y t r e e n e n r s d a t ) l ( c p o L u m m e m n o r a e c d a m d n e e n e t n i r s t t - ) (p P p l e a a o r r t a c t i i n e o c s n n i - t) OTHER BANKS 1 Overnight6 2,959 4.9 51.0 3.9 2 One month or less (excluding overnight) 3,707,616 628 4.12 11.2 49.1 2.4 3 Fixed rate 2,558,721 931 3.93 9.2 42.2 1.6 4 Floating rate 1,148,894 364 4.54 15.4 64.6 4.4 5 More than one month and less than one year 4,000,450 89 169 5.72 48.3 70.9 1.2 6 Fixed rate 1,199,864 62 127 5.45 44.5 49.4 1.5 7 Floating rate 2,800,586 110 188 5.83 49.9 80.0 1.0 8 Demand7 4,795,772 150 5.75 58.0 79.9 5.6 9 Fixed rate 1,320,271 317 4.13 27.9 67.4 4.2 10 Floating rate 3,475,501 125 6.37 69.4 84.6 6.1 11 Total short-term 14,875,593 178 5.01 35.2 65.2 3.3 12 Fixed rate (thousands of dollars) 7,450,611 274 36 4.14 16.9 50.6 2.7 13 1-99 358,736 14 142 8.06 87.9 43.5 .6 14 100-499 273,362 204 146 6.34 81.1 41.1 3.9 15 500-999 134,675 670 99 5.17 56.8 69.0 3.2 16 1,000-4,999 1,068,668 2,267 36 4.20 16.7 65.9 6.3 17 5,000-9,999 1,037,106 6,316 37 3.99 21.3 68.5 7.4 18 10,000 or more 4,578,064 25,289 19 3.68 5.3 43.6 1.0 19 Floating rate (thousands of dollars)... 7,424,982 132 138 5.88 53.7 79.8 3.9 20 1-99 1,039,846 23 162 7.63 83.4 81.1 1.6 21 100-499 1,635,968 198 161 7.02 79.7 86.3 3.4 22 500-999 626,284 676 179 6.47 75.6 86.2 6.6 23 1,000-4,999 1,560,212 2,032 160 6.10 71.9 85.2 6.9 24 5,000-9,999 411,532 6,504 96 5.40 47.7 74.6 10.0 25 10,000 or more 2,151,140 24,497 114 3.93 1.1 69.4 1.3 Months 26 Total long-term 1,898,966 96 6.47 67.5 65.2 27 Fixed rate (thousands of dollars) 569,618 55 6.06 58.3 48.7 1.6 28 1-99 171,912 18 7.35 94.5 23.6 .1 29 100-499 92,231 201 7.19 92.3 33.2 1.1 30 500-999 52,463 731 6.74 45.0 16.2 6.2 31 1,000 or more 253,012 4,103 4.63 23.9 78.2 1.8 32 Floating rate (thousands of dollars)... 1,329,347 141 6.64 71.4 72.2 11.1 33 1-99 195,392 27 7.84 88.0 47.3 5.2 34 100-499 364,458 219 7.40 82.0 69.8 9.9 35 500-999 224,765 719 6.72 49.2 81.4 18.4 36 1,000 or more 544,733 3,051 5.68 67.5 79.0 10.9 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME1" 37 Overnight6 2,313,848 8,282 3.64 3.61 2.6 51.8 4.0 38 One month or less (excluding overnight) 3,437,247 2,857 23 3.88 3.83 7.2 46.6 1.2 39 More than one month and less than one vear 2,054,577 295 157 4.25 4.22 19.8 74.9 .7 40 Demand7 2,003,014 1,301 3.98 3.97 21.7 64.9 4.1 41 Total short-term 9,808,686 982 52 3.92 3.89 11.7 57.5 2.3 42 Fixed rate 6,858,621 1,475 27 3.83 3.80 11.0 51.5 2.9 43 Floating rate 2,950,065 552 115 4.12 4.10 13.4 71.3 1.0 Months 44 Total long-term 598,397 246 4.70 40.1 72.5 5.2 45 Fixed rate 275,194 181 4.48 4.43 25.2 77.8 3.3 46 Floating rate .. 323,202 355 4.96 4.93 52.8 67.9 6.9 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 1994—Continued NOTES 1. The survey of terms of bank lending to business collects data on gross loan 4. The chances are about two out of three that the average rate shown would extensions made during the first full business week in the mid-month of each differ by less than the amount of the standard error from the average rate that quarter by a sample of 340 commercial banks of all sizes. A sample of 250 banks would be found by a complete survey of lending at all banks. reports loans to farmers. The sample data are blown up to estimate the lending 5. The rate used to price the largest dollar volume of loans. Base pricing rates terms at all insured commercial banks during that week. The estimated terms of include the prime rate (sometimes referred to as a bank's "basic" or "reference" bank lending are not intended for use in collecting the terms of loans extended rate); the federal funds rate; domestic money market rates other than the federal over the entire quarter or residing in the portfolios of those banks. Construction funds rate; foreign money market rates; and other base rates not included in the and land development loans include both unsecure loans and loans secured by real foregoing classifications. estate. Thus, some of the construction and land development loans would be 6. Overnight loans mature on the following business day. reported on the statement of condition as real estate loans and the remainder as 7. Demand loans have no stated date of maturity. business loans. Mortgage loans, purchased loans, foreign loans, and loans of less 8. Nominal (not compounded) annual interest rate calculated from the stated that $1,000 are excluded from the survey. As of September 30, assets of most of rate and other terms of the loans and weighted by loan size. the large banks were at least $7.0 billion. For all insured banks, total assets 9. Calculated by weighting the prime rate reported by each bank by the volume averaged $275 million. of loans reported by that bank, summing the results, and then averaging over all 2. Average maturities are weighted by loan size; excludes demand loans. reporting banks. 3. Effective (compounded) annual interest rate calculated from the stated rate 10. The proportion of loans made at rates below the prime may vary substanand other terms of the loans and weighted by loan size. tially from the proportion of such loans outstanding in banks' portfolios. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • May 1994 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 19931—Continued Millions of dollars, except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s in T c I l B o u t F d a s i l n g I o B n F ly s 1 Total assets4 695,677 312,276 533,634 247,705 72,199 35,244 53,136 21,578 2 Claims on nonrelated parties 614,784 178,670 466,022 145,832 66,495 15,658 52,990 12,286 3 Cash and balances due from depository institutions 136,932 111,525 117,757 94,080 7,334 6,741 10,384 9,889 4 Cash items in process of collection and unposted debits 2,494 0 2,374 0 17 0 87 0 5 Currency and coin (U.S. and foreign) 23 n.a. 16 n.a. 2 n.a. 1 n.a. 6 Balances with depository institutions in United States .. 86,898 66,158 74,119 54,565 5,071 4,527 6,999 6,773 7 U.S. branches and agencies of other foreign banks (including IBFs) 82,313 64,153 70,244 52,677 4,750 4,431 6,813 6,763 8 Other depository institutions in United States (including IBFs) 4,585 2,005 3,876 1,889 322 97 187 10 9 Balances with banks in foreign countries and with foreign central banks 46,671 45,367 40,493 39,514 2,222 2,214 3,288 3,116 10 Foreign branches of U.S. banks 893 761 709 578 77 77 78 78 11 Other banks in foreign countries and foreign central banks 45,778 44,606 39,783 38,936 2,145 2,137 3,210 3,038 12 Balances with Federal Reserve Banks 845 n.a. 755 n.a. 22 n.a. 7 n.a. 13 Total securities and loans 382,819 57,420 265,614 43,272 54,275 8,262 36,669 1,994 14 Total securities, book value 94,168 14,153 86,901 13,000 3,861 703 2,871 434 15 U.S. Treasury 35,413 n.a. 34,818 n.a. 171 n.a. 353 n.a. 16 Obligations of U.S. government agencies and corporations 21,402 n.a. 20,6% n.a. 476 n.a. 112244 n.a. 17 Other bonds, notes, debentures, and corporate stock (including state and local securities) 37,353 14,153 31,388 13,000 3,214 703 2,394 434 18 Federal funds sold and securities purchased under agreements to resell 49,529 4,545 46,566 4,058 676 170 1,662 200 19 U.S. branches and agencies of other foreign banks 11,528 3,863 9,394 3,458 501 170 1,312 200 70 Commercial banks in United States 7,716 82 7,178 22 102 0 176 0 21 Other 30,285 601 29,994 579 73 0 174 0 22 Total loans, gross 288,765 43,273 178,788 30,276 50,433 7,559 33,807 1,560 73 LESS: Unearned income on loans 114 6 76 4 19 0 10 0 24 EQUALS: Loans, net 288,651 43,268 178,713 30,272 50,414 7,558 33,797 1,560 Total loans, gross, by category 7,5 Real estate loans 44,774 351 24,109 135 13,847 177 44,,112277 3388 76 Loans to depository institutions 43,700 28,636 30,634 19,504 7,448 5,770 2,318 1,059 27 Commercial banks in United States (including IBFs) 19,828 9,984 12,967 6,090 4,810 3,264 1,791 587 28 U.S. branches and agencies of other foreign banks ... 17,145 9,677 11,164 5,902 4,561 3,170 1,243 587 29 Other commercial banks in United States 2,683 307 1,803 188 249 94 549 0 30 Other depository institutions in United States (including IBFs) 144 0 134 0 0 0 10 0 31 Banks in foreign countries 23,728 18,652 17,534 13,414 2,639 2,506 517 472 37. Foreign branches of U.S. banks 646 614 593 564 50 50 0 0 33 Other banks in foreign countries 23,083 18,039 16,941 12,851 2,589 2,456 517 472 34 Loans to other financial institutions 21,810 751 18,655 631 1,204 15 1,360 34 35 Commercial and industrial loans 158,521 10,272 89,272 7,210 27,343 1,521 23,911 373 36 U.S. addressees (domicile) 140,481 186 76,679 159 25,000 12 23,201 0 37 Non-U.S. addressees (domicile) 18,040 10,087 12,592 7,051 2,343 1,510 710 373 38 Acceptances of other banks 1,126 40 847 33 54 0 30 0 39 U.S. banks 450 5 414 5 5 0 2 0 40 Foreign banks 676 35 433 28 49 0 28 0 41 Loans to foreign governments and official institutions (including foreign central banks) 4,495 2,975 3,352 2,552 158 77 252 57 42 Loans for purchasing or carrying securities (secured and unsecured) 9,617 43 9,218 43 207 0 119 0 43 All other loans 4,722 205 2,702 168 171 0 1,690 0 44 All other assets 45,504 5,179 36,085 4,422 4,210 485 4,276 202 45 Customers' liabilities on acceptances outstanding 14,620 n.a. 10,676 n.a. 2,675 n.a. 730 n.a. 46 U.S. addressees (domicile) 10,800 n.a. 7,460 n.a. 2,410 n.a. 648 n.a. 47 Non-U.S. addressees (domicile) 3,820 n.a. 3,216 n.a. 265 n.a. 83 n.a. 48 Other assets including other claims on nonrelated parties 30,884 5,179 25,409 4,422 1,535 485 3,545 202 49 Net due from related depository institutions 80,893 133,606 67,613 101,874 5,703 19,586 146 9,293 50 Net due from head office and other related depository institutions5 80,893 n.a. 67,613 n.a. 5,703 n.a. 146 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 133,606 n.a. 101,874 n.a. 19,586 n.a. 99,,229933 52 Total liabilities4 695,677 312,276 533,634 247,705 72,199 35,244 53,136 21,578 53 Liabilities to nonrelated parties 583,541 288,703 478,360 230,535 56,365 34,639 31,570 17,635 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1993'—Continued Millions of dollars, except as noted All states2 New York California Illinois ex I T c B l o u F t d a s i l 3 n g o IB nl F y s 3 ex T c IB l o u t F d a s i l ng I o B n F ly s ex T c IB l o u t F d a s i l ng I o B n F ly s ex T c IB l o u t F d a s i l ng 54 Total deposits and credit balances 148,907 216,961 131,536 196,230 4,570 6,437 3,675 55 Individuals, partnerships, and corporations 104,426 12,165 89,316 7,827 4,229 441 3,236 56 U.S. addressees (domicile) 90,973 181 81,631 181 2,601 0 2,248 57 Non-U.S. addressees (domicile) 13,453 11,984 7,685 7,647 1,627 441 987 58 Commercial banks in United States (including IBFs). 27,601 64,170 26,179 59,645 68 2,171 372 59 U.S. branches and agencies of other foreign banks 14,853 57,506 14,063 53,557 61 1,971 226 60 Other commercial banks in United States 12,748 6,664 12,115 6,089 7 200 146 61 Banks in foreign countries 7,694 122,212 7,436 111,597 46 2,991 1 62 Foreign branches of U.S. banks 3,650 3,925 3,650 3,726 0 36 0 63 Other banks in foreign countries 4,044 118,287 3,787 107,871 46 2,955 1 64 Foreign governments and official institutions (including foreign central banks) 3,256 18,214 2,952 17,040 182 835 2 65 All other deposits and credit balances 5,564 200 5,357 120 20 0 55 66 Certified and official checks 365 296 26 9 67 Transaction accounts and credit balances (excluding IBFs) 8,256 6,682 318 314 68 Individuals, partnerships, and corporations 6,171 4,918 230 300 69 U.S. addressees (domicile) 4,327 3,721 180 295 70 Non-U.S. addressees (domicile) 1,843 1,196 50 5 71 Commercial banks in United States (including IBFs). 99 93 2 0 72 U.S. branches and agencies of other foreign banks 9 7 1 0 73 Other commercial banks in United States 90 87 1 0 74 Banks in foreign countries 1,067 895 37 1 75 Foreign branches of U.S. banks 1 1 0 0 76 Other banks in foreign countries 1,066 894 37 1 77 Foreign governments and official institutions (including foreign central banks) 387 339 78 All other deposits and credit balances 168 141 79 Certified and official checks 365 296 80 Demand deposits (included in transaction accounts and credit balances) 7,730 6,487 260 299 81 Individuals, partnerships, and corporations 5,739 4,785 189 286 82 U.S. addressees (domicile) 4,173 3,671 152 281 83 Non-U.S. addressees (domicile) 1,566 1,114 37 5 84 Commercial banks in United States (including IBFs). 93 1 0 85 U.S. branches and agencies of other foreign banks 7 1 0 86 Other commercial banks in United States 87 0 0 87 Banks in foreign countries 1,032 863 36 1 88 Foreign branches of U.S. banks 1 1 0 0 89 Other banks in foreign countries 1,031 862 36 1 90 Foreign governments and official institutions (including foreign central banks) 356 321 4 2 91 All other deposits and credit balances 138 129 4 1 92 Certified and official checks 365 296 26 9 93 Nontransaction accounts (including MMDAs, excluding IBFs) 140,651 124,854 4,253 3,361 94 Individuals, partnerships, and corporations 98,255 84,398 3,999 2,936 95 U.S. addressees (domicile) 86,646 77,910 2,422 1,953 96 Non-U.S. addressees (domicile) 11,609 6,488 1,577 983 97 Commercial banks in United States (including IBFs). 27,502 26,085 67 372 98 U.S. branches and agencies of other foreign banks 14,844 14,057 60 226 99 Other commercial banks in United States 12,659 12,029 6 145 100 Banks in foreign countries 6,627 6,541 9 0 101 Foreign branches of U.S. banks 3,649 3,649 0 0 102 Other banks in foreign countries 2,979 2,893 9 0 103 Foreign governments and official institutions (including foreign central banks) 2,870 2,613 178 0 104 All other deposits and credit balances 5,397 5,216 0 54 105 IBF deposit liabilities 216,961 196,230 6,437 106 Individuals, partnerships, and corporations 12,165 7,827 441 107 U.S. addressees (domicile) 181 181 0 108 Non-U.S. addressees (domicile) 11,984 7,647 441 109 Commercial banks in United States (including IBFs). 64,170 59,645 2,171 110 U.S. branches and agencies of other foreign banks 57,506 53,557 1,971 111 Other commercial banks in United States 6,664 6,089 200 112 Banks in foreign countries 122,212 111,597 2,991 113 Foreign branches of U.S. banks 3,925 3,726 36 114 Other banks in foreign countries 118,287 107,871 2,955 115 Foreign governments and official institutions (including foreign central banks) 18,214 17,040 835 116 All other deposits and credit balances 200 120 0 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • May 1994 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 19931—Continued Millions of dollars, except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u t F d a s i l ng I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 117 Federal funds purchased and securities sold under agreements to repurchase 60,741 9,240 52,469 6,555 4,842 1,369 3,066 1,219 118 U.S. branches and agencies of other foreign banks — 11,440 2,275 8,367 1,234 1,823 520 1,113 495 119 Other commercial banks in United States 8,122 507 5,478 291 1,817 191 782 25 120 Other 41,180 6,459 38,624 5,030 1,202 659 1,172 699 121 Other borrowed money 115,557 57,741 65,470 23,647 36,827 26,358 11,386 7,034 122 Owed to nonrelated commercial banks in United States (including IBFs) 40,745 21,576 16,583 5,092 18,636 13,342 4,145 2,715 123 Owed to U.S. offices of nonrelated U.S. banks 11,465 2,711 6,375 633 3,754 1,649 999 407 124 Owed to U.S. branches and agencies of nonrelated foreign banks 29,280 18,866 10,208 4,459 14,881 11,693 3,146 2,308 125 Owed to nonrelated banks in foreign countries 36,341 33,926 19,087 16,846 12,841 12,725 4,080 4,1 80 126 Owed to foreign branches of nonrelated U.S. banks ... 944 904 444 428 368 363 102 102 127 Owed to foreign offices of nonrelated foreign banks 35,398 33,022 18,642 16,418 12,473 12,362 3,978 3,978 128 Owed to others 38,471 2,238 29,800 1,708 5,351 291 3,161 239 129 All other liabilities 41,375 4,761 32,654 4,103 3,687 475 4,214 152 130 Branch or agency liability on acceptances executed and outstanding 15,544 n.a. 11,570 n.a. 2,648 n. a. 748 n.a. 131 Other liabilities to nonrelated parties 25,831 4,761 21,085 4,103 1,040 475 3,466 152 132 Net due to related depository institutions5 112,136 23,573 55,275 17,170 15,834 605 21,566 3,943 133 Net owed to head office and other related depository institutions 112,136 n.a. 55,275 n.a. 15,834 n.a. 21,566 n.a. 134 Net owed to establishing entity, head office, and other related depository institutions n.a. 23,573 n.a. 17,170 n.a. 605 n.a. 3,943 MEMO 135 Non-interest-bearing balances with commercial banks 1,178 0 869 0 125 0 61 0 in United States 136 Holding of commercial paper included in total loans 1,280 1,252 11 5 137 Holding of own acceptances included in commercial and industrial loans 2,626 1,981 451 3366 138 Commercial and industrial loans with remaining maturity of one year or less 96,593 53,462 15,987 15,480 139 Predetermined interest rates 60,418 n.a. 32,849 n. a. 9,767 n.a. 11,197 n.a. 140 Floating interest rates 36,175 20,613 6,220 4,283 141 Commercial and industrial loans with remaining maturity of more than one year 61,928 35,810 11,356 8,431 142 Predetermined interest rates 20,968 12,250 4,204 3,386 143 Floating interest rates 40,960 23,560 7,152 5,045 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1993'—Continued Millions of dollars, except as noted All states2 New York California Illinois IItteemm ex I T c B l o u F t d a s i l 3 n g o IB nl F y s 3 ex T c IB l o u t F d a s i l ng I o B n F ly s ex T c IB l o u t F d a s i l ng I o B n F ly s ex T c IB l o u t F d a s i l ng I o B n F ly s 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 145,877 t 130,440 t 5,162 t 3,567 t 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 109,109 98,182 3,098 1,825 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 25,771 n.a. 23,088 n.a. 776 n.a. 1,295 n.a. 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee \ 1 * < wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 10,9% 9,169 1,287 448 All states2 New York California Illinois inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 94,511 14,6% 87,267 13,508 3,905 722 2,802 450 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 74,233 n.a. 37,197 n.a. 28,367 n.a. 7,325 n.a. 111155550000 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd5555 555 0 261 0 127 0 50 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, item is not an eligible IBF asset or liability or because that level of detail is not "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign reported for IBFs. From December 1981 through September 1985, IBF data were Banks." The form was first used for reporting data as of June 30, 1980, and was included in all applicable items reported. revised as of December 31, 1985. From November 1972 through May 1980, U.S. 4. Total assets and total liabilities include net balances, if any, due from or branches and agencies of foreign banks had filed a monthly FR 886a report. owed to related banking institutions in the United States and in foreign countries Aggregate data from that report were available through the Federal Reserve (see note 5). On the former monthly branch and agency report, available through statistical release G.ll, last issued on July 10, 1980. Data in this table and in the the G.ll statistical release, gross balances were included in total assets and total G. 11 tables are not strictly comparable because of differences in reporting panels liabilities. Therefore, total asset and total liability figures in this table are not and in definitions of balance sheet items. IBF, international banking facility. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of a bank, a bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent international banking facilities (IBFs). Since December 31, 1985, data for IBFs holding company (including subsidiaries owned both directly and indirectly). have been reported in a separate column. These data are either included in or 6. In some cases two or more offices of a foreign bank within the same excluded from the total columns as indicated in the headings. The notation "n.a." metropolitan area file a consolidated report. indicates that no IBF data have been reported for that item, either because the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Index to Statistical Tables References are to pages A3-A81 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Debt (See specific types of debt or securities) Agricultural loans, commercial banks, 21, 22 Demand deposits Assets and liabilities (See also Foreigners) Banks, by classes, 18-23 Banks, by classes, 18-22 Ownership by individuals, partnerships, and Domestic finance companies, 36 corporations, 23 Federal Reserve Banks, 11 Turnover, 17 Financial institutions, 28 Depository institutions Foreign banks, U.S. branches and agencies, 23, 78-81 Reserve requirements, 9 Automobiles Reserves and related items, 4, 5, 6, 13, 69, 71, 73 Consumer installment credit, 39 Deposits (See also specific types) Production, 47, 48 Banks, by classes, 4, 18-22, 24 Federal Reserve Banks, 5, 11 Interest rates, 16 BANKERS acceptances, 10, 22, 26 Turnover, 17 Bankers balances, 18-22, 78-81. (See also Foreigners) Bonds (See also U.S. government securities) Discount rates at Reserve Banks and at foreign central banks and New issues, 35 foreign countries (See Interest rates) Rates, 26 Discounts and advances by Reserve Banks (See Loans) Branch banks, 23 Dividends, corporate, 35 Business activity, nonfinancial, 45 Business expenditures on new plant and equipment, 35 EMPLOYMENT, 45 Business loans (See Commercial and industrial loans) Eurodollars, 26 CAPACITY utilization, 46 FARM mortgage loans, 38 Capital accounts Federal agency obligations, 5, 10, 11, 12, 31, 32 Banks, by classes, 18, 69, 71, 73 Federal credit agencies, 33 Federal Reserve Banks, 11 Federal finance Central banks, discount rates, 65 Debt subject to statutory limitation, and types and ownership Certificates of deposit, 26 of gross debt, 30 Commercial and industrial loans Receipts and outlays, 28, 29 Commercial banks, 21, 68, 70, 72 Treasury financing of surplus, or deficit, 28 Weekly reporting banks, 21-23 Treasury operating balance, 28 Commercial banks Federal Financing Bank, 28, 33 Assets and liabilities, 18-22, 74-77 Federal funds, 7, 19, 21, 22, 23, 26, 28 Commercial and industrial loans, 18-23 Federal Home Loan Banks, 33 Consumer loans held, by type and terms, 39, 68, 70, 72 Federal Home Loan Mortgage Corporation, 33, 37, 38 Deposit interest rates of insured, 16 Federal Housing Administration, 33, 37, 38 Loans sold outright, 21 Federal Land Banks, 38 Nondeposit funds, 78-81 Federal National Mortgage Association, 33, 37, 38 Number by classes, 69, 71, 73 Federal Reserve Banks Real estate mortgages held, by holder and property, 38 Condition statement, 11 Terms of lending, 74-77 Discount rates (See Interest rates) Time and savings deposits, 4 U.S. government securities held, 5, 11, 12, 30 Commercial paper, 24, 26, 36 Federal Reserve credit, 5, 6, 11, 12 Condition statements (See Assets and liabilities) Federal Reserve notes, 11 Construction, 45, 49 Federally sponsored credit agencies, 33 Consumer installment credit, 39 Finance companies Consumer prices, 45, 46 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, 24, 26 Security issues, 34, 65 Financial institutions, loans to, 21, 22, 23 Cost of living (See Consumer prices) Float, 51 Credit unions, 39 How of funds, 40, 42, 43, 44 Currency and coin, 68, 70, 72 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 5, 14 agencies, 22, 23, 78-81 Customer credit, stock market, 27 Foreign currency operations, 11 Foreign deposits in U.S. banks, 5, 11, 21, 22 Foreign exchange rates, 68 DEBITS to deposit accounts, 17 Foreign trade, 54 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 Foreigners Production, 45, 47 Claims on, 55, 58, 59, 60, 62 Profits, corporate, 35 Liabilities to, 22, 54, 55, 56, 61, 63, 64 REAL estate loans GOLD Banks, by classes, 21, 22, 38, 70 Certificate account, 11 Terms, yields, and activity, 37 Stock, 5, 54 Type of holder and property mortgaged, 38 Government National Mortgage Association, 33, 37, 38 Repurchase agreements, 7, 21-23 Gross domestic product, 51 Reserve requirements, 9 Reserves HOUSING, new and existing units, 49 Commercial banks, 18 Depository institutions, 4, 5, 6, 13 INCOME, personal and national, 45, 51, 52 Federal Reserve Banks, 11 Industrial production, 45, 47 U.S. reserve assets, 54 Installment loans, 39 Residential mortgage loans, 37 Insurance companies, 30, 38 Retail credit and retail sales, 39, 40, 45 Interest rates Bonds, 26 SAVING Commercial banks, 74-77 Flow of funds, 40, 42, 43, 44 Consumer installment credit, 39 National income accounts, 51 Deposits, 16 Savings and loan associations, 38, 39, 40 Federal Reserve Banks, 8 Savings banks, 38, 39 Foreign central banks and foreign countries, 67 Savings deposits (See Time and savings deposits) Money and capital markets, 26 Securities (See also specific types) Mortgages, 37 Federal and federally sponsored credit agencies, 33 Prime rate, 25 Foreign transactions, 63 International capital transactions of United States, 53-65 New issues, 34 International organizations, 55, 56, 58, 61, 62 Prices, 27 Inventories, 51 Special drawing rights, 5, 11, 53, 54 Investment companies, issues and assets, 35 State and local governments Investments (See also specific types) Deposits, 21, 22 Banks, by classes, 18-23 Holdings of U.S. government securities, 30 Commercial banks, 4, 18-23, 70 New security issues, 34 Federal Reserve Banks, 11,12 Ownership of securities issued by, 21, 22 Financial institutions, 38 Rates on securities, 26 Stock market, selected statistics, 27 LABOR force, 45 Stocks (See also Securities) Life insurance companies (See Insurance companies) New issues, 34 Loans (See also specific types) Prices, 27 Banks, by classes, 18—23 Commercial banks, 4, 18-23, 68, 70, 72 Student Loan Marketing Association, 33 Federal Reserve Banks, 5, 6, 8, 11, 12 Financial institutions, 38 TAX receipts, federal, 29 Insured or guaranteed by United States, 37, 38 Thrift institutions, 4. (See also Credit unions and Savings and loan associations) MANUFACTURING Time and savings deposits, 4, 14, 16, 18-23, 69, 71, 73 Capacity utilization, 46 Trade, foreign, 54 Production, 46, 48 Treasury cash, Treasury currency, 5 Margin requirements, 27 Treasury deposits, 5, 11, 28 Member banks (See also Depository institutions) Treasury operating balance, 28 Federal funds and repurchase agreements, 7 UNEMPLOYMENT, 45 Reserve requirements, 9 U.S. government balances Mining production, 48 Commercial bank holdings, 18-23 Mobile homes shipped, 49 Treasury deposits at Reserve Banks, 5, 11, 28 Monetary and credit aggregates, 4, 13 U.S. government securities Money and capital market rates, 26 Bank holdings, 18-23, 30 Money stock measures and components, 4, 14 Dealer transactions, positions, and financing, 32 Mortgages (See Real estate loans) Federal Reserve Bank holdings, 5, 11, 12, 30 Mutual funds, 35 Foreign and international holdings and Mutual savings banks (See Thrift institutions) transactions, 11, 30, 64 Open market transactions, 10 NATIONAL defense outlays, 29 Outstanding, by type and holder, 28, 30 National income, 51 Rates, 25 U.S. international transactions, 53-67 OPEN market transactions, 10 Utilities, production, 48 PERSONAL income, 52 VETERANS Administration, 37, 38 Prices Consumer and producer, 45, 50 WEEKLY reporting banks, 22-24 Stock market, 27 Wholesale (producer) prices, 45, 50 Prime rate, 25 Producer prices, 45, 50 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 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 JOHN J. MINGO, Senior Adviser RICHARD SPILLENKOTHEN, Director LEVON H. GARABEDIAN, Assistant Director STEPHEN C. SCHEMERING, Deputy Director (Administration ) DON E. KLINE, Associate Director WILLIAM A. RYBACK, Associate Director DIVISION OF MONETARY AFFAIRS FREDERICK M. STRUBLE, Associate Director DONALD L. KOHN, Director HERBERT A. BIERN, Deputy Associate Director DAVID E. LINDSEY, Deputy Director ROGER T. COLE, Deputy Associate Director BRIAN F. MADIGAN, Associate Director JAMES I. GARNER, Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director HOWARD A. AMER, Assistant Director NORMAND R. V. BERNARD, Special Assistant to the Board GERALD A. EDWARDS, JR., Assistant Director JAMES D. GOETZINGER, Assistant Director DIVISION OF CONSUMER STEPHEN M. HOFFMAN, JR., Assistant Director AND COMMUNITY AFFAIRS LAURA M. HOMER, Assistant Director JAMES V. HOUPT, Assistant Director GRIFFITH L. GARWOOD, Director JACK P. JENNINGS, Assistant Director GLENN E. LONEY, Associate Director MICHAEL G. MARTINSON, Assistant Director DOLORES S. SMITH, Associate Director RHOGER H PUGH, Assistant Director MAUREEN P. ENGLISH, Assistant Director SIDNEY M. SUSSAN, Assistant Director IRENE SHAWN MCNULTY, Assistant Director MOLLY S. WASSOM, Assistant Director WILLIAM SCHNEIDER, Project Director, National Information Center Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 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 R. WEIS, Associate Director JOHN H. PARRISH, Assistant 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

A86 Federal Reserve Bulletin • May 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 R LAWARE ROBERT T. PARRY JERRY L. JORDAN LAWRENCE B. LINDSEY ALTERNATE MEMBERS THOMAS M. HOENIG THOMAS C. MELZER JAMES H. OLTMAN SILAS KEEHN STAFF DONALD L. KOHN, Secretary and Economist JOHN M. DAVIS, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary MARVIN S. GOODFRIEND, Associate Economist JOSEPH R. COYNE, Assistant Secretary DAVID E. LINDSEY, Associate Economist GARY P. GILLUM, Assistant Secretary LARRY J. PROMISEL, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel CHARLES J. SIEGMAN, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel THOMAS D. SIMPSON, Associate Economist MICHAEL J. PRELL, Economist DAVID J. STOCKTON, Associate Economist EDWIN M. TRUMAN, Economist SHEILA L. TSCHINKEL, Associate Economist JACK H. BEEBE, 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 RICHARD M. ROSENBERG, President EUGENE A. MILLER, Vice President 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 Emeritus WILLIAM J. KORSVIK, Co-Secretary JAMES ANNABLE, Co-Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 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

A88 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated MS-127, Board of Governors of the Federal Reserve System, 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. Four 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, 1993-94. Federal Reserve Regulatory Service, $250.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or Each Handbook, $90.00 per year. $2.50 each in the United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $3.00 each. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- ANNUAL STATISTICAL DIGEST: period covered, release date, COUNTRY MODEL, May 1984. 590 pp. $14.50 each. number of pages, and price. WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. 1981 October 1982 239 pp. $ 6.50 INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 440 pp. $9.00 each. 1982 December 1983 266 pp. $ 7.50 1983 October 1984 264 pp. $11.50 FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. December 1986. 264 pp. $10.00 each. 1984 October 1985 254 pp. $12.50 1985 October 1986 231 pp. $15.00 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1986 November 1987 288 pp. $15.00 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 CONSUMER EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 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

A89 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 Bray ton 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, Jefif 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

A90 Maps of the Federal Reserve System 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

A91 1-A 2-B 3-C 4-D 5_E Baltimore Pittsburgh NY OH i' Charlotte • Cincinnati Buffalo y • \ CT NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H Wl "I MO • J". .. • ./^Louisville IA Detroit • U ™ • Memphis Littl* ) MS Rock \ ATLANTA CHICAGO ST. Louis 9-1 • Helena I m f g gm MINNEAPOLIS 10-J 12-L } MO •NM •• R Okliihoma City KANSAS CITY } • ' Salt Lake City • Los Angeles SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 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 Carl W. Turnipseed1 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 Slay don 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 Laura M. Douglas 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 Richard K. Rasdall 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

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 Mortgage for Women, Lock-Ins Minorities, and Small Businesses [ Pi I 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 four-volume loose-leaf service The Consumer and Community Affairs Handbook containing all Board regulations as well as related contains Regulations B, C, E, M, Z, AA, BB, and DD, statutes, interpretations, policy statements, rulings, and 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 Regulato monetary policy, securities credit, consumer affairs, tions CC, J, and EE, related statutes and commenand the payment system. taries, and policy statements on risk reduction in the These publications are designed to help those who payment system. must frequently refer to the Board's regulatory mate- For domestic subscribers, the annual rate is $200 rials. They are updated monthly, and each contains for the Federal Reserve Regulatory Service and $75 citation indexes and a subject index. for each Handbook. For subscribers outside the The Monetary Policy and Reserve Requirements United States, the price including additional air mail Handbook contains Regulations A, D, and Q, plus costs is $250 for the Service and $90 for each Handrelated materials. book. All subscription requests must be accompanied The Securities Credit Transactions Handbook con- by a check or money order payable to the Board of tains Regulations G, T, U, and X, dealing with exten- Governors of the Federal Reserve System. Orders sions of credit for the purchase of securities, together should be addressed to Publications Services, mail with related statutes, Board interpretations, rulings, stop 127, Board of Governors of the Federal Reserve and staff opinions. Also included are the Board's list 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