Federal Reserve Bulletin, 1994-06

VOLUME 80 • NUMBER 6 • JUNE 1994 FEDERAL RESERVE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 483 PROFITS AND BALANCE SHEET 511 STATEMENTS TO THE CONGRESS DEVELOPMENTS AT US. COMMERCIAL John P. LaWare, member, Board of Gover- BANKS IN 1993 nors, presents the views of the Board on sev- In 1993, U.S. commercial banks had their best eral topics related to hedge funds and says that year since World War II. The return on assets the Federal Reserve will continue to work reached 1.21 percent, nearly one-third higher with other U.S. agencies and with foreign centhan in 1992. The return on equity also tral banks to monitor important developments reached a postwar high, exceeding 15 percent in financial markets and to ensure that it is in a for the first time. Profits increased primarily position to react promptly to any problems because of a decline in provisions for loan that might arise, before the House Committee losses. They continued to be boosted by rela- on Banking, Finance and Urban Affairs, tively wide net interest margins, strong gains April 13, 1994. from trading activities, and high income from fees. Last year's profit performance allowed 517 Governor LaWare discusses the Board's views banks to increase dividends sharply and still to on H.R.3447, "The Securities Regulatory boost capital by retaining a very high share of Equality Act," and says that the Board has income. Substantial issuance of equity and several concerns about the approach of H.R.3447, which would prohibit banks from subordinated debt, when added to the high directly conducting most securities activities, level of retained earnings, led to further because it believes that the prohibitions of increases in capital ratios. With profits high H.R.3447 would stifle competition in the marand capital ratios comfortable, banks appeared ketplace for securities services and signifito be more willing to expand their balance cantly increase costs to small banks without sheets. The growth in bank assets picked up improving supervision of their securities activwith securities holdings continuing the rapid ities, before the Subcommittee on Telecomexpansion of recent years and bank loans rismunications and Finance of the House Coming strongly after two years of decline. Bank mittee on Energy and Commerce, April 14, loan growth picked up further in early 1994, 1994. reflecting an acceleration of business and consumer loans. 522 ANNOUNCEMENTS Joint statement of the North American Finan- 508 INDUSTRIAL PRODUCTION AND cial Group. CAPACITY UTILIZATION FOR APRIL 1994 Slight increase in pressure on reserve Industrial production rose 0.3 percent in April requirements. after gains of 0.5 percent in each of the three preceding months. At 116.0 percent of its Statement by Chairman Greenspan on the 1987 average, industrial production was nomination of two new members of the Board. 5.0 percent higher in April than it was a year earlier. The utilization of total industrial Release of quarterly table of factors to adjust capacity held steady, at 83.6 percent. interest income of section 20 subsidiaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revisions to the List of Marginable OTC A67 GUIDE TO STATISTICAL RELEASES AND Stocks and to the List of Foreign Margin SPECIAL TABLES Stocks. A68 INDEX TO STATISTICAL TABLES Changes in Board staff. A70 BOARD OF GOVERNORS AND STAFF 525 LEGAL DEVELOPMENTS A72 FEDERAL OPEN MARKET COMMITTEE Various bank holding company, bank service AND STAFF; ADVISORY COUNCILS corporation, and bank merger orders; and pending cases. A74 FEDERAL RESERVE BOARD PUBLICATIONS A1 FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of A76 SCHEDULE OF RELEASE DATES FOR April 27, 1994. PERIODIC RELEASES A78 MAPS OF THE FEDERAL RESERVE A3 GUIDE TO TABULAR PRESENTATION SYSTEM A4 Domestic Financial Statistics A45 Domestic Nonfinancial Statistics A80 FEDERAL RESERVE BANKS, BRANCHES, A53 International Statistics AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 William B. English and Brian K. Reid, of the ing the rapid increase of recent years and bank Board's Division of Monetary Affairs, prepared this loans rising strongly after two years of decline. article. Thomas C. Allard assisted in the prepara- Bank loan growth picked up further in early 1994, tion of the data, and Susan V. Helfrey provided reflecting an acceleration of business and consumer research assistance. loans.1 Banks benefited from the good performance of the U.S. economy in 1993. Real gross domestic In 1993, U.S. commercial banks had their best year product increased about 3 percent, while inflation since World War II. The return on assets reached remained relatively low. Short-term interest rates 1.21 percent, nearly one-third higher than in 1992. were little changed over the year, as the Federal The return on equity also reached a postwar high, Reserve made no adjustments to the stance of monexceeding 15 percent for the first time (chart 1). etary policy. Long-term rates, however, fell sub- Profits increased primarily because of a decline in stantially during the first three quarters, with the provisions for loan losses. They continued to be thirty-year Treasury bond yield shedding about boosted by relatively wide net interest margins, IV2 percentage points between January and Octostrong gains from trading activities, and high ber. Long-term rates turned upward late in the year income from fees. Last year's profit performance but still finished 1993 down a full percentage point allowed banks to increase dividends sharply and from the beginning of the year. still to boost capital by retaining a very high share of income (table 1). Substantial issuance of equity This environment helped bank profits in two and subordinated debt, when added to the high ways. First, the continued economic expansion and level of retained earnings, led to further increases the low interest rates contributed to an improvein capital ratios. With profits high and capital ratios ment in the quality of bank assets: Firms reduced comfortable, banks appeared to be more willing to their debt burdens, and commercial real estate expand their balance sheets. The growth in bank assets picked up with securities holdings continu- 1. Except where otherwise indicated, data in this article are from the quarterly Report of Condition and Income (Call Report) for insured domestic commercial banks and nondeposit trust compa- 1. Measures of profitability, 1970-93 nies. The data, which cover all such institutions that filed at least one Call Report, consolidate information from foreign and domes- Percent Percent tic offices and have been adjusted to take account of mergers. Size categories of such institutions (hereafter called banks), which refer to assets at the start of each quarter, are as follows: small banks, those not among the largest 1,000 banks; medium-sized banks, Return on equity / 15 those between numbers 101 and 1,000 by size; large banks, those 1.0 between numbers 11 and 100 by size; and the ten largest banks. At the start of the fourth quarter of 1993, the ten largest banks had /A / —10 assets of more than $36 billion, large banks had assets between Return on assets ' $6 billion and $36 billion, medium-sized banks had assets between approximately $300 million and $6 billion, and small banks had — 5 assets of less than approximately $300 million. Data for 1985-92 I l l g i li • have been revised to reflect uniform definitions across time and to incorporate updated Call Report information. Because of report 111 1 1 1 1 1 1 1 changes, data for the years preceding 1985 are not strictly compara- 1970 1975 1980 1985 1990 ble to the more recent data. In the tables, components may not sum NOTE. The data are annual. to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 Federal Reserve Bulletin • June 1994 1. Selected income and expense items, 1989-93 The consolidation of the banking industry con- Percent tinued, with a pickup in bank mergers and a further decline in new charters. According to FDIC fig- Item 1989 1990 1991 1992 1993 ures, 482 mergers occurred in 1993, compared with Net interest margin 3.51 3.45 3.60 3.89 3.90 428 in 1992. Only 59 new charters were issued, Net noninterest margin -1.79 -1.82 -1.93 -1.91 -1.81 Loss provisions .97 .96 1.02 .78 .47 the fewest in one year since the early 1950s. All Gains on investment account securities .02 .01 .09 .11 .09 told, the number of banks declined more than 4 per- Income before taxes .77 .68 .75 1.32 1.72 cent last year. Despite this reduction, full-time- Taxes and extraordinary equivalent employees increased about 1 percent, items .29 .21 .22 .41 .50 Net income .48 .47 .53 .92 1.21 reversing a three-year slide. Dividends .44 .42 .45 .41 .62 Retained income .04 .05 .08 .50 .60 BALANCE SHEET DEVELOPMENTS NOTE. Percentage of average net consolidated assets. In 1993, the balance sheets of commercial banks markets in much of the nation stabilized. Second, expanded at the briskest pace since 1986 (table 2). the expanding economy spurred demand for bank On the asset side, bank loans increased for the first loans, which in turn increased bank revenues. The time in two years, while securities holdings continhealth of the banking sector may have contributed ued to expand rapidly. On the liability side, deposit to the improvement in the economy, as banks eased growth picked up slightly, but bank issuance of their lending terms and standards thereby increas- subordinated debt fell back from the high rate of ing the availability of bank credit. 1992. Other liabilities expanded rapidly. Equity The decline in long-term interest rates had capital increased at nearly the same pace as in negative implications for bank profits, however. 1992. Because bank assets generally have longer maturities than bank liabilities, the flattening of the yield Assets curve should cut bank interest margins as assets mature or reprice. The decline in long-term rates Total bank assets grew nearly 53/4 percent in 1993, also encouraged households to refinance home more than twice the increase in 1992. After two mortgages, cutting interest income from mortgages years of runoffs, bank loans increased 6 percent, as and mortgage-backed securities and, for banks with credit demand picked up and banks eased lending mortgage-servicing portfolios, eroding the value of terms and standards. Securities growth remained at purchased servicing rights as serviced mortgages about the same high pace as that in 1992. were prepaid. Finally, the low level of long-term interest rates encouraged firms with access to the capital markets to substitute long-term financing Loans for bank loans, thereby reducing bank revenues. These negative effects were offset, to some degree, Commercial and industrial loans edged up for the by the capital gains that banks earned on their first time since 1989. Real estate loan growth securities and by the fee income that they earned picked up to its fastest pace since 1990. Primarily, from refinancing activities. however, the strong rebound in bank loans reflected The improved condition of the banking sector is a substantial acceleration in consumer loans. clearly reflected in measures of bank distress. The number of banks classified by the Federal Deposit Commercial and industrial loans. Commercial Insurance Corporation (FDIC) as "problem banks" and industrial loans, which had declined 4 percent fell more than 45 percent, to 426. Total assets at in 1992 and 9 percent in 1991, grew V2 percent in these banks declined about 40 percent, to $242 bil- 1993. The turnaround resulted from slower runoffs lion. Only 42 banks failed last year, the lowest at the ten largest banks and moderate growth at annual total since 1982 and far fewer than the banks in the other three size categories. In contrast, 100 banks that failed in 1992. all four size groups had registered declines in 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 485 On the supply side, loan growth was bolstered by less for smaller borrowers. Respondents attributed an easing of loan standards and terms. Responses the more accommodative terms and standards to a to the Federal Reserve's periodic Senior Loan Offi- more favorable economic outlook, to fewer probcer Opinion Survey on Bank Lending Practices lems in specific industries to which they lend, and (LPS) indicated that banks began to ease terms and to improvements in their expected capital positions standards on commercial and industrial loans in the owing to better asset quality. second quarter of 1993, reversing at least a part of The LPS responses show that the terms eased the tightening registered in 1990 and early 1991 most were loan and line fees and spreads of loan (chart 2). Respondent banks—about sixty banks, rates over base rates. Data on loan spreads from the most of them quite large, located in all twelve Federal Reserve's Survey of Terms of Bank Lend- Federal Reserve Districts—reported easing for bor- ing to Business suggest, however, that the overall rowers of all sizes, although terms were relaxed narrowing of spreads last year was fairly small and 2. Annual rates of growth of balance sheet items, 1985-93 Percent Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Total assets 8.92 7.74 2.00 4.38 5.42 2.65 1.36 2.24 5.69 Interest-earning assets 9.62 7.90 3.08 4.08 5.67 2.25 2.01 2.58 6.57 Loans and leases (net) 7.93 7.45 3.01 5.97 6.31 2.40 -2.62 -.98 6.07 Commercial and industrial 2.16 3.98 -1.94 1.88 3.01 -.69 -9.08 -4.06 .59 Real estate 13.78 17.56 16.58 12.49 12.82 8.80 2.78 2.01 6.14 Booked in domestic offices 13.53 17.17 17.13 12.06 13.15 8.56 2.95 2.64 6.18 Construction and land development 17.20 19.64 12.37 7.16 5.79 -7.42 -18.63 -23.38 -15.57 Farmland 11.58 11.92 13.82 7.27 7.62 3.66 6.88 7.97 4.77 One- to four-family 9.50 12.10 18.52 14.65 16.25 14.07 7.81 7.58 11.08 Multifamily residential 16.47 26.15 11.52 3.37 9.50 4.53 14.39 14.25 8.97 Nonfarm nonresidential 18.07 23.60 19.48 12.82 14.02 10.45 4.92 3.27 3.79 Booked in foreign offices 22.49 30.20 .84 27.03 3.00 16.65 -2.34 -17.80 4.66 Consumer 15.81 8.66 4.55 7.66 6.23 .52 -2.49 -1.49 8.93 Credit card 28.19 17.01 12.05 13.92 12.17 1.93 4.41 -1.95 13.27 Installment and other 12.12 5.79 1.71 5.04 3.55 -.16 -5.93 -1.24 6.54 Other loans 4.54 -.91 -5.33 -3.07 -.91 -5.69 -4.92 -4.26 10.08 Loan loss reserves and unearned income 9.13 9.61 44.41 -4.16 10.31 .38 -3.75 -4.66 -6.10 Securities 15.96 9.97 4.94 3.32 5.10 8.45 16.25 12.30 12.28 Investment account 14.06 10.32 7.51 2.99 4.07 8.19 14.44 11.46 8.11 U.S. Treasury 5.41 1.68 -.00 -5.78 -13.76 3.51 32.07 23.97 7.26 U.S. government agency and corporation -3.98 53.59 25.47 22.58 33.54 24.02 15.90 12.79 9.61 State and local government 33.02 -12.64 -13.94 -12.06 -11.37 -11.50 -12.22 -1.99 8.53 Other 32.80 74.73 48.75 11.19 11.89 -2.07 5.90 -7.50 4.19 Trading account 41.40 6.21 -23.88 8.58 20.62 11.87 38.89 21.02 51.95 Other interest-earning assets 9.22 6.96 .22 -5.78 2.54 -11.68 2.82 1.60 -8.02 Non-interest-earning assets 4.62 6.67 -5.08 6.51 3.62 5.49 -3.10 -.27 -.87 Total liabilities 8.86 7.74 2.18 4.09 5.49 2.40 1.04 1.40 5.11 Deposits 7.94 7.81 2.31 4.11 4.80 3.87 1.59 .39 2.07 Booked in foreign offices 1.34 -2.49 8.86 -7.77 -1.08 -5.88 3.82 -5.85 15.06 Booked in domestic offices 9.22 9.66 1.26 6.16 5.68 5.24 1.31 1.19 .52 Demand 8.96 13.17 -10.77 .64 .34 .67 -2.02 12.48 5.70 Other checkable 17.79 32.76 7.81 7.61 2.41 6.36 14.82 18.54 5.09 Savings' 16.83 17.54 -.74 1.10 .44 6.48 14.38 13.18 3.57 Large time 4.29 -1.00 12.15 9.28 5.04 -5.67 -19.52 -26.34 -9.17 Small time 3.67 -1.41 7.53 14.41 17.20 14.04 -.34 -11.64 -6.07 Subordinated notes and debentures 43.86 15.85 3.72 -4.26 20.43 19.94 4.03 34.89 10.82 Other liabilities 12.67 7.12 1.46 4.32 8.40 -5.37 -2.01 5.25 20.61 Equity capital 9.79 7.71 -.67 8.81 4.34 6.62 5.95 13.78 12.71 MEMO2 Commercial real estate loans n.a. n.a. n.a. n.a. n.a. n.a. -3.53 -5.10 -1.30 Managed liabilities 9.17 3.08 6.90 2.32 5.25 -6.12 -6.11 -6.09 12.30 NOTE. Data are from year-end to year-end. estate, construction, and land development activities not secured by real n.a. Not available. estate. 1. Includes money market deposit accounts. Managed liabilities are measured as the sum of deposits in foreign offices, 2. Commercial real estate loans are measured as the sum of construction large time deposits in domestic offices, federal funds purchased and securiand land development loans secured by real estate; real estate loans secured ties sold under agreements to resell, demand notes issued to the U.S. by nonfarm nonresidential properties; and loans to finance commercial real Treasury, subordinated notes and debentures, and other borrowed money. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 Federal Reserve Bulletin • June 1994 2. Net percentage of selected large commercial banks that more rapidly than spreads on smaller loans last tightened credit standards, 1990:Q2-94:Q2 year. On the demand side, a substantial pickup in investment spending by businesses likely spurred credit growth. The LPS responses indicate a pickup in demand for business loans last year, especially by small and medium-sized firms. Some LPS respondents noted that competition from the capital markets trimmed the demand for business loans by large firms. Issuance of corporate bonds was boosted by declines in long-term rates during much of the year. Gross issuance of bonds by nonfinancial firms reached an all-time high early in 1993 and remained strong by historical standards until long-term rates rose in the fall (chart 4). In many cases the funds raised were used, at least in part, to retire bank debt. Similarly, the strength of the stock market encouraged firms to issue equity, and they likely used a part of the proceeds to pay down bank debt. These factors helped to account for the continued weakness in commercial and industrial loans at the larger banks last year. Real estate loans. Real estate loans grew 6 perreporting tightening less the percentage reporting easing. cent in 1993, more than three times the rate in 1. The data for large firms begin in 1990:Q3. Size definition suggested for, 1992. Most of the growth came in the residential and generally used by, survey respondents is that medium-sized firms are those with annual sales of between $50 million and $250 million. sector, as it has for several years, with loans for 2. The data for construction and land development loans begin in 1990:Q3. one- to four-family mortgages rising 11 percent. SOURCE. Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices. Both demand and supply factors boosted home mortgage lending last year. The continued strength that spreads on loans to small and medium-sized in the economy, coupled with the lowest level of borrowers remained wide at year-end relative to mortgage rates in more than twenty years, led to a historical norms (chart 3). As suggested by the LPS pickup in the demand for housing. At the same responses, measured spreads on large loans fell time, some of the LPS respondent banks indicated 3. Loan rate spread over average federal funds rate, by size 4. Gross offerings of long-term securities by nonfinancial of loan, 1987-94:Q1 corporations, 1987-94:Q1 Basis points Billions of dollars Less than $100 thousand 1987 1989 1991 1993 NOTE. The data are quarterly. NOTE. The data are averages of monthly values for each quarter. SOURCE. Federal Reserve Survey of Terms of Bank Lending to Business. SOURCES. Federal Reserve and Securities Data Corp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 487 that they eased standards for making mortgage 5. Vacancy rates for commercial real estate, 1989-93 loans to individuals for home purchases in the second half of the year. Home mortgage loans on banks' books probably also received a temporary boost from the high level of refinancing activity last year. As mortgages were refinanced, banks held the new mortgages until they were sold to federal agencies or securitized directly by the banks. Moreover, some households likely took the opportunity provided by refinancing to extract some equity from their housing investment to pay down higher-cost consumer debt and to use for other purposes. Banks also increased their indirect financing of residential mortgages by purchasing a substantial volume of mortgage-backed securities. Although these securities offer a lower yield than direct mortgage lending, they are attractive because of their greater liquidity, better diversification, lower capital charge, and—for Government National Mortgage Association (GNMA) securities—government backing. Last year, mortgage-backed securities held by banks accounted for 373/4 percent of total commercial bank financing of residential mortgages SOURCE. CB Commercial Real Estate Group, Inc. (loans plus mortgage-backed securities), up from 31V2 percent in early 1990. Commercial real estate loans declined about estate loans to investor groups and thus to reduce 1V4 percent in 1993, considerably less than in 1992. the volume of such loans on their books. In addi- Responses to the LPS suggest that, although banks tion, many banks reduced their holdings of other stopped tightening standards for such loans, lend- real estate owned, which declined more than oneing standards remained tight relative to those in third, to just less than $17 billion last year. place a few years ago (chart 2). In part, this continued stringency reflects a needed correction to rela- Consumer loans. Consumer loans supplied much tively low standards in the late 1980s. Also, over- of the impetus to total loan growth last year. After building left many commercial real estate markets two years of runoffs, consumer loans grew nearly burdened with high vacancy rates and soft prices. 9 percent. The increase reflected double-digit Nonetheless, commercial real estate markets growth in credit card lending, as well as a substanappear to be recovering. Vacancy rates for indus- tial pickup in the growth of other consumer loans, trial real estate, although high, have declined for and occurred despite an increase in auto leasing two years, and vacancy rates for office properties and the possible paydowns of consumer debt with began to fall sharply in 1992 and at the end of 1993 the proceeds of mortgage refinancings that were were well below their 1989 level (chart 5). Accord- noted above. ing to the FDIC, almost 40 percent of the examin- Three factors contributed to the rapid growth in ers and liquidators surveyed in January 1994 consumer loans in 1993. First, strong consumer thought that the commercial real estate market in spending boosted the demand for credit. Total contheir area was improving, and only 5 percent sumption expenditures increased 5Vi percent in thought it was worsening. Slightly more of them nominal terms, and the consumer durables comporeported increasing prices than reported decreasing nent rose about 9 percent. The effects of this spendprices. The better condition of the market allowed ing on consumer borrowing were reflected in the several banks to sell large blocks of troubled real responses on the LPS, which showed a pickup in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 Federal Reserve Bulletin • June 1994 demand for consumer loans over the course of the ital gains and losses on such investment account year. Second, banks were more aggressive lenders, securities do not affect reported income, as is the with an average of about 20 percent of the LPS case for trading accounts, but they are reflected respondents reporting increased willingness to in a bank's equity account under the new genermake consumer loans last year. The survey re- ally accepted accounting principles. As a result, sponses were consistent with the data on consumer reported bank capital is likely to be more volatile. lending rates: The average rate charged by banks Surveys suggested that banks would respond to on forty-eight-month auto loans fell about 1 per- FASB 115 by shortening the maturities of their centage point, over a quarter point more than the securities holdings, thereby reducing the additional decline in auto loan rates at finance companies and volatility imparted to reported capital. In early more than the declines in deposit and market rates. 1993, about a quarter of the LPS respondents indi- Similarly, the average rate charged on banks' most cated that the desired average maturity of their common credit card plans fell more than a percent- securities portfolio had declined, largely because of age point. Third, convenience use of credit cards existing or anticipated rules on the valuation of likely increased. Both the card-issuing banks and securities portfolios. Similarly, a survey conducted the major credit card interchange systems contrib- in late 1992 by Ernst and Young indicated that uted to the increase—the former by offering new FASB 115 would lead banks to shorten the matupromotions for card use and the latter by expanding rity of their securities holdings. the acceptance of credit cards at nontraditional Thus far, however, the evidence suggests that the outlets, such as grocery stores. The higher balances decline in the average maturity of bank investment resulting from increased convenience use are more account securities has been fairly small. The distrilikely than other balances to be paid off within the bution of securities by maturity reported in the typical interest-free grace period; nonetheless, they December 1993 Call Report shows a small shift boost both the average level of consumer debt toward shorter maturities (table 3). These data, outstanding on any given day and bank revenue however, likely overstate the actual expected matubecause the merchant pays the bank a fee when the rities of bank securities holdings because banks latter's credit card is used. must report the maturity of mortgage-backed securities based on the stated final maturity of the underlying mortgages rather than on their expected Securities maturities, which reflect anticipated prepayments. Bank holdings of securities expanded 12^4 percent 3. Maturity structure of selected assets and liabilities at last year, almost exactly the same rate as in 1992. year-end, 1990-93 Investment account securities rose 8 percent, down Percent from IIV2 percent in 1992. This slower growth in Account 1990 1991 1992 1993 and maturity range investment account securities was offset, however, by a sharp jump in trading account assets, which Loans and leases Three months or less 51.29 49.00 48.47 48.57 grew more than 50 percent last year. Three months-one year .. 14.65 15.69 15.95 16.51 One-five years 22.46 23.73 23.90 23.28 Bank holdings of investment securities were More than five years 11.59 11.57 11.69 11.65 likely affected last year by the accounting changes Total 100 100 100 100 required under Financial Accounting Standards Securities Three months or less 11.67 12.33 12.69 13.61 Board Statement 115 (FASB 115). FASB 115 Three months-one year .. 14.30 13.70 14.07 16.35 applies to financial statements in fiscal years begin- One-five years 34.16 34.50 36.98 35.72 More than five years 39.87 39.47 36.27 34.32 ning after December 15, 1993, but some banks Total 100 100 100 100 implemented it as of year-end 1993. Other banks Time deposits Three months or less 42.17 39.70 36.16 34.11 may have adjusted securities holdings in anticipa- Three months-one year .. 38.73 39.55 38.54 37.16 tion of its implementation. These changes require More than one year 19.10 20.75 25.30 28.72 Total 100 100 100 100 banks to mark to market investment account securities that they do not intend to hold to maturity, just NOTE. Maturity ranges of three months to one year include maturities of exactly one year. Maturity ranges of one year to five years include maturities as they do securities held in trading accounts. Cap- of exactly five years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 489 This problem is most severe in the case of collater- cent in 1991. The growth of U.S. government alized mortgage obligations (CMOs). Most of the agency securities, which peaked at more than CMOs in banks' investment accounts have re- 30 percent in 1989, fell further, to about 9Vi perported maturities of more than five years, but LPS cent in 1993. Within this category, the level of data indicate that these securities have an average agency CMOs actually declined in the fourth expected maturity of well under five years. As a quarter. result of this reporting problem, the Call Report In contrast, municipal securities, which had run data may not adequately capture changes in the off since a tax law change in 1986 reduced their expected maturity of bank securities. The Ameri- attractiveness to banks, expanded 8V2 percent last can Bankers Association Portfolio Managers Sur- year. According to a recent LPS, at the end of 1993 vey avoids this difficulty by asking banks for the nearly half of the dollar volume of the respondents' "average weighted life" of their securities port- municipal securities holdings had been purchased folios after taking into account expected prepay- before the tax change. Such securities were grandments on mortgage-backed securities. The most fathered under the favorable pre-1987 rules. About recent survey indicates that the average weighted three-quarters of their remaining tax-exempt securilife of the respondents' investment account securi- ties were "bank-qualified" instruments. These ties was 3.3 years at the end of 1993, down only securities, which also retain the pre-1987 tax treatslightly from 3.4 years at the end of 1992. ment, are obligations of local government entities It is possible, however, that banks delayed and charitable organizations whose total annual adjusting their portfolios until after the implemen- issuance is less than $10 million. The gross issutation of FASB 115. In the May 1994 LPS, half of ance of long-term bank-qualified securities has the surveyed banks said they had shortened the been very strong in recent years, and these securiaverage maturity of their securities portfolio ties account for much of the recent increase in because of the new accounting rules. In addition, a holdings of tax-exempt instruments. In addition, significant number of banks reported increased yields on tax-exempt securities rose last fall relahedging activity. tive to those on comparable taxable securities. Sev- Even taking into account the difference between eral LPS respondents indicated that this increase reported and expected maturities, bank holdings of had led them to purchase tax-exempt instruments. securities appear to have longer maturities than Finally, a few banks noted that improved profitabilbank loans. Thus, the maturity of bank assets may ity or exhaustion of net operating loss carryforhave increased slightly in recent years because of wards made tax-exempt securities more attractive. the shift of bank assets from loans to securities. On the liability side, the maturities of bank time depos- Trading account assets. Assets held in trading its have increased since 1990. The share of time accounts expanded rapidly in 1993, primarily deposits in total deposits has declined rapidly, how- because of a large increase in the trading accounts ever, and so the average maturity of all deposits of the top ten banks. These banks' trading accounts, may have decreased. The average maturity of lia- which include more than 80 percent of the trading bilities has been boosted, however, by increased account assets at all banks, expanded more than issuance of subordinated and senior debt with rela- 45 percent last year. Trading accounts at other tively long maturities. In addition, banks have banks grew even more rapidly, almost doubling in increased their reliance on equity finance. 1993. These large increases suggest that the high level of trading profits last year may have encour- Investment account securities. Growth of securi- aged banks to increase their trading activities. ties held in investment accounts slowed in 1993, and growth rates were more uniform across various types of securities. In previous years, Treasury and Liabilities agency securities had paced the growth of securities. Last year, however, the growth of U.S. Trea- Total bank liabilities rose 5 percent last year, the sury securities fell sharply, to 7 VA percent from largest increase since 1989. The growth in total more than 20 percent in 1992 and more than 30 per- liabilities resulted from continued expansion of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 Federal Reserve Bulletin • June 1994 transaction deposits, albeit at a slower pace than in Refinancings temporarily increase the level of 1992, a less rapid runoff in time deposits, and transaction deposits because mortgage servicers strong growth in other liability categories. must hold prepayments of mortgages securitized by GNMA or the Federal National Mortgage Association in transaction accounts for up to six weeks Transaction Deposits before distributing the money to the holders of the security. Transaction deposits expanded in 1993, although more slowly than in 1992. Domestic demand deposits rose 53A percent, and other checkable Nontransaction Deposits deposits grew more than 5 percent. Demand deposits had increased rapidly in 1992 as a result of the Nontransaction deposits declined on the whole last decline in short-term rates, but their growth slowed year, with a small increase in savings deposits more last year as short-term rates stabilized. The slower than offset by the continued decline in time deposgrowth in other checkable deposits reflected the its. Savings deposits (including money market decline in rates on these accounts relative to money deposit accounts) increased 3V2 percent, well market rates. For example, the average yield on below the 13 percent rise posted a year earlier. The NOW accounts fell last year, responding with a lag slower growth reflected the decline in rates on to the reduction in market rates in previous years savings accounts relative to market rates as deposit (chart 6). rates continued to adjust to previous declines in market rates. Both large and small time deposits Transaction deposit growth would have slowed fell last year, although less rapidly than in 1992. further but for the surge in mortgage refinancings Rates on small time deposits declined last year, but generated by last year's decline in long-term rates. not as much as rates on NOW and savings deposits. The low rates on bank deposits, the steep yield 6. Selected interest rates, 1987-94:Q1 curve, and the strong performance of stocks and bonds in recent years have encouraged savers to shift from deposits to stock and bond mutual funds (chart 7). Net monthly sales of shares of long-term bond funds averaged $11.6 billion, an increase of more than 20 percent since 1992. Sales of equity fund shares, boosted in large part by the quadrupling of inflows to international equity funds, accelerated more than 60 percent. With this large increase, sales of shares of equity funds reached 7. Net sales of long-term mutual fund shares, 1985-94:Q1 deposit accounts. SOURCE. Federal Reserve Monthly Survey of Selected Deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 491 about the same level as those of long-term bond The volume of commercial and standby letters of funds, averaging $11.7 billion per month last year. credit outstanding leveled out after declining for In contrast to the declines in domestic nontrans- two years. Performance standby letters of credit actions deposits, deposits booked in foreign offices declined more than 10 percent, while commercial grew 15 percent, accounting for the bulk of the and similar letters of credit changed little. Financial growth in deposits. The increase in funding abroad standby letters of credit, which make up more than may be the result of lower U.S. dollar funding costs 60 percent of total bank letters of credit, rebounded, in Europe and Japan, owing to the weakness of rising 5V£ percent after having fallen 12 percent their economies and the resulting low level of over the previous two years. demand for funds. Indeed the spreads between The increase in financial standby letters of credit Eurodollar interest rates and U.S. interest rates were is likely the result, in part, of the banking indusrelatively narrow last year by historical standards. try's strong recovery over the past two years. Since letters of credit increase risk-weighted assets, the improved capital position of U.S. banks may have Other Liabilities increased banks' willingness to provide them. Bank activities in derivatives markets also Banks also increased borrowing from other sources expanded last year. The credit-equivalent value of in 1993. Subordinated notes and debentures ex- all interest rate and exchange rate contracts rose panded more than 10 percent, but this increase was about 2 percent, to more than $200 billion. The well below that posted in 1992. Other liabilities credit equivalent value is an estimate of the credit increased more than 20 percent, with much of the exposure on an off-balance-sheet derivatives conincrease coming in federal funds purchased and tract that is intended to be comparable to the securities sold under agreement to repurchase and on-balance-sheet credit exposure created by a loan. in other borrowed money. Federal funds and repur- The estimate is the sum of the current exposure chase borrowing rose 8V2 percent, while other (the replacement cost) and an estimate of the potenborrowed money grew more than 40 percent. The tial future increase in credit exposure (a small category "other borrowed money" includes, fraction of the notional principal value of the conamong other items, senior debt. Press reports indi- tract). The total credit equivalent value of bank cated that senior debt issuance was heavy in 1993, interest rate contracts (including the value of interas improved capital ratios allowed some banks to est rate swaps, futures contracts, forward contracts, issue relatively low-cost senior debt rather than and option contracts) increased 44 percent, reachmore expensive capital-augmenting subordinated ing 2lA percent of bank assets at year-end. In debt. This anecdotal evidence is consistent with the contrast, the credit equivalent value of all foreign slowing of subordinated debt issuance. exchange contracts (including the value of exchange rate swaps, commitments to buy foreign exchange, and option contracts) declined I6V2 per- Off-Balance-Sheet Items cent, to less than 3lA percent of bank assets. As in the past, the vast majority of these derivatives Banks continued to expand their off-balance-sheet contracts were held by the ten largest banks. activities last year. Unused loan commitments increased more than 14 percent, doubling the gain posted in 1992 and suggesting a further advance in TRENDS IN PROFITABILITY credit availability. At year-end, unused commitments totaled nearly $1.5 trillion—more than two- Net income at commercial banks rose 37 percent in thirds of total loans. As they have been in recent 1993 and lifted the return on assets 29 basis points, years, unused commitments were divided fairly to 1.21 percent. The return on equity rose 2% perequally between credit card lines and commercial centage points, to \5Vi percent. Nearly all of the and industrial credit lines. Other types of commit- increase in net income from 1992 to 1993 was ments, including home equity lines of credit, attributable to lower loan loss provisions, which amounted to less than 10 percent of the total. fell to 0.47 percent of assets (table 4). The net Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 Federal Reserve Bulletin • June 1994 4. Selected income and expense items, by size of bank, 5. Return on assets, by Federal Reserve District, 1990-93 1991-93 Percent Percent Year and Net Net Net Loss District 1991 1992 1993 interest noninterest size of bank income provisions margin margin Boston -.13 .72 .94 New York .10 .64 1.01 1993 Philadelphia 1.23 1.55 1.99 All 1.21 3.90 -1.81 .47 Cleveland .97 1.31 1.49 Small 1.25 4.38 -2.43 .26 Richmond .29 .81 1.04 Medium 1.21 4.25 -2.09 .46 .61 1.03 1.24 Large 1.26 3.85 -1.66 .47 .84 .92 1.22 Ten largest 1.13 3.16 -1.14 .64 St. Louis .92 1.11 1.27 Minneapolis 1.31 1.60 1.78 1992 Kansas City .83 1.06 1.29 All .92 3.89 -1.91 .78 Dallas .65 1.05 1.34 Small 1.07 4.37 -2.49 .43 San Francisco .41 .70 1.09 Medium .92 4.19 -2.19 .76 Large 1.04 3.86 -1.73 .78 All Districts .53 .92 1.21 Ten largest .61 3.15 -1.27 1.12 NOTE. Return on assets is net income as a percentage of average net 1991 All .53 3.60 -1.93 1.02 consolidated assets. Small .77 4.08 -2.52 .51 Medium .61 3.95 -2.11 1.06 Large .51 3.40 -1.69 1.19 where banks earned an average return on assets of Ten largest .22 2.95 -1.43 1.21 1.99 percent. The high profits in this District and in 1990 the Minneapolis District partly result from the All .47 3.45 -1.82 .96 Small .74 4.06 -2.48 .52 regional concentration of credit card banks, which Medium .51 3.83 -2.00 1.11 Large .24 3.22 -1.59 1.27 have much higher average rates of return on assets Ten largest .48 2.72 -1.28 .77 than other banks have. NOTE. Percentage of average net consolidated assets. The strong 1993 profits for banks showed through to the results for bank holding companies, noninterest margin narrowed considerably to a whose return on assets averaged 1.14 percent.2 The minus 1.81 percent, also boosting net income; and, return on equity for bank holding companies despite a flattening of the yield curve, the average jumped to 14 percent. Their assets grew 8VA pernet interest margin was about unchanged, at cent. The pace and composition of asset growth 3.90 percent of assets. were similar to those for banks—securities at hold- Banks in all size categories improved their prof- ing companies rose 11 percent, and loans and leases itability, but the ten largest banks showed the larg- grew 6V2 percent. est gain. These banks cut their rate of loan loss provisioning almost in half, to an average 64 basis points. This decline, along with a narrower net Loss Provisions and Asset Quality noninterest margin, nearly doubled these banks' average return on assets to 1.13 percent, just below High loan loss reserves and improved asset quality the industry average. Lower loan loss provisions allowed banks to reduce provisioning in 1993 and narrower noninterest margins also accounted (table 6). Delinquent loans (those that are more for most of the increase in net incomes of banks in than thirty days past due or that are on nonaccrual other size categories. status) fell sharply and ended 1993 at about 3.5 per- Bank income varied widely by Federal Reserve cent of total loans, down from more than 6 percent District (table 5). Although some of the largest in early 1991. Small banks had the lowest delinimprovements in earnings in 1993 were among quency rate, but differences among the categories Districts that had experienced returns on assets narrowed. Net charge-offs as a share of loans fell to below the industry average in 1992, increases were 0.85 percent, down from 1.30 percent in 1992. more uniform than in 1992. Consequently, banks in Because loan growth was positive and provisioning the Boston, New York, Richmond, and San Francisco Districts remained the least profitable on average. The largest increase in profitability 2. These data are for bank holding companies with more than one bank subsidiary, which account for 93 percent of all bank occurred at banks in the Philadelphia District, holding company assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 493 6. Measures of loan quality, by size of bank, 1990-93 delinquencies for commercial and industrial loans Percent dropped to their lowest levels since before 1985, Year and Net Delinquency Loss perhaps partly as a result of the relatively tight size of bank charge-offs rate1 provisions lending standards in the early 1990s. Delinquency 1993 and charge-off rates for real estate loans tumbled, All .85 4.14 .81 in part reflecting improvements in commercial real Small .43 3.24 .48 Medium .74 3.56 .78 estate markets and bank sales of troubled real Large .93 4.01 .79 Ten largest 1.20 5.76 1.12 estate loans. Measures of consumer loan quality returned to levels attained before the recession, as 1992 All 1.30 5.35 1.32 the economic expansion strengthened the financial Small .63 3.89 .80 Medium 1.19 4.55 1.26 position of households. Large 1.37 5.23 1.29 Ten largest 1.87 7.68 1.85 1991 All 1.59 6.03 1.66 Interest Income and Expense Small .77 4.41 .93 Medium 1.43 5.28 1.70 Large 1.67 6.13 1.92 For the year as a whole, interest income and inter- Ten largest 2.38 8.21 1.87 est expense as a share of average assets fell by 1990 All 1.44 5.22 1.55 equal amounts, leaving the net interest margin at Small .72 4.19 .94 Medium 1.19 4.47 1.73 Large 1.73 5.36 2.02 Ten largest 1.94 6.85 1.19 9. Charge-off and delinquency rates, by type of loan, NOTE. Percentage of outstanding loans. 1. Delinquent loans are nonaccrual loans and those that are accruing 1985-93 interest but are more than thirty days past due. was less than charge-ofFs, loan loss reserves declined as a share of loans (chart 8) but remained near historical highs. Although loan loss reserves declined, the large drop in delinquencies increased the ratio of loan loss reserves to delinquent loans to 70 percent at year-end, up from its recent low of 43 percent in 1991. Loan quality improved for the three major loan categories (chart 9). In 1993, net charge-offs and 8. Reserves for loan losses, loss provisions, and net charge-offs as a percentage of loans, 1980-93 NOTE. The data are quarterly and seasonally adjusted. 1. The charge-off rate for a category of loans is the category's annualized charge-offs for the period, net of recoveries, divided by the category's average level of outstanding loans for the period. 2. Delinquent loans are nonaccrual loans and those accruing interest but more than thirty days past due. The delinquency rate for a category of loans is the category's average level of delinquent loans for the period divided by the category's average level of outstanding loans for the period. Before 1987, the NOTE. The data are annual. data are for domestic loans only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 Federal Reserve Bulletin • June 1994 3.9 percent of assets. Net interest rate margins, less than that on securities, supporting the gross which began to widen in 1990, peaked at 4.0 per- return on assets. cent in the fourth quarter of 1992, before falling The pattern of net interest margins across bankback slightly throughout 1993. Even though the size categories changed little in 1993 (chart 10). yield curve flattened somewhat last year, as The ten largest banks continued to have the narrowintermediate- and long-term rates fell and short- est margins. These banks finance a smaller share of term rates held steady, banks buffered the decline their assets with transaction accounts and retail in interest margins partly by reducing deposit inter- deposits, which carry lower interest rates than other est rates. The decline in interest rates on NOW types of liabilities. As a result, interest expense at accounts and savings deposits reestablished more these banks is much higher than that at other banks. typical relationships between these rates and money Gross interest income as a percentage of average market rates. And although rates on certificates of assets was again the highest for the ten largest deposit (CDs) declined less than those on liquid banks and the small banks. Differences in interest deposits last year, CD rates had declined substan- income among the size categories are driven pritially in previous years, allowing banks to pay marily by the returns on loan portfolios. The ten lower rates than they had been paying on maturing largest banks and the small banks, on average, earn longer-term CDs. Banks also bolstered interest 50 to 100 basis points more on their loans than do income by maintaining wider-than-average spreads banks in the other size categories. In contrast, while between business loan rates and market interest the ten largest banks have the highest return on rates, at the expense of faster loan growth. As a securities, the differences among the other size consequence, the average return on loans declined categories are small. 10. Interest income, interest expense, and net interest 11. Noninterest income, noninterest expense, and net margin as a percentage of average assets, by size of noninterest margin as a percentage of average assets, bank, 1985-93 by size of bank, 1985-93 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 495 Noninterest Income and Expense securities trading gains, which pushed up their noninterest income 30 basis points. Noninterest For the banking system as a whole, the negative income also rose for banks in other size categories. spread between noninterest income and expense An increase in service charges on deposits and in narrowed in 1993 for the second straight year, as securities trading gains lifted noninterest income at noninterest income rose 18 basis points and nonin- large banks. The increase in noninterest income at terest expenses edged up 8 basis points. Securities small and medium-sized banks was concentrated in trading gains rose sharply last year and accounted "other noninterest income." Noninterest margins for half of the increase in noninterest income. advanced less at small banks, which posted a larger Another source of growth in 1993 was in the broad increase in wages and salaries. category of "other noninterest income," which includes mortgage servicing and refinancing fees. Further declines in mortgage interest rates and the Changes in Capital resultant waves of refinancings likely helped to boost this income category. The increase in nonin- Bank capital surged in 1993, as higher profits terest expense partially reflected salaries, which enabled banks to increase retained earnings even as rose 3 basis points as a share of assets. Other they hiked dividends 50 percent. The higher level noninterest expenses, a category that includes of retained earnings, along with additional sales of deposit insurance premiums, advanced 6 basis equity and capital transfers from parent holding points. Insurance premiums have tripled since 1989 companies, lifted equity capital as a share of assets and have added about 10 basis points to noninterest from IV2 percent in the fourth quarter of 1992 to expense over this period. 8 percent in the fourth quarter of 1993. The propor- The most substantial decline in the noninterest tion of industry assets at the end of 1993 at wellmargin occurred at the ten largest banks even capitalized banks—adjusted for bank examiners' though their noninterest expense increased sharply ratings—rose to almost 82 percent, up from 30 per- (chart 11). These banks benefited the most from cent at the end of 1990. The fraction at undercapi- 7. Retained income and change in total equity capital, by size of bank, 1986-93 Millions of dollars except as noted Item and size of bank 1986 1987 1988 1989 1990 1991 1992 1993 Retained income All banks 8,066 -8,117 11,202 1,180 1,777 2,836 17,277 21,226 Small 1,047 1,227 1,468 2,018 1,661 2,098 3,836 4,726 Medium 2,432 1,561 1,535 2,264 -135 261 4,256 4,175 Large 2,892 -3,468 3,454 820 -1,310 409 5,855 5,341 Ten largest 1,695 -7,436 4,745 -3,922 1,561 67 3,330 6,984 Net change in equity capital1 All banks 12,797 -1,231 15,843 8,419 13,465 12,900 31,860 33,307 Small 1,334 1,010 467 2,517 1,673 1,064 3,262 2,625 Medium 4,686 4,221 3,355 4,356 4,204 4,665 4,908 7,184 Large 4,400 -970 6,837 3,110 4,763 6,942 9,556 13,213 Ten largest 2,378 -5,493 5,185 -1,565 2,826 228 14,134 10,284 Change in equity capital (percent)1 All banks 7.60 -.68 8.80 4.30 6.59 5.92 13.81 12.69 Small 2.54 1.88 .85 4.56 2.90 1.79 5.39 4.12 Medium 10.44 8.52 6.24 7.62 6.84 7.10 6.97 9.54 Large 11.26 -2.23 16.09 6.30 9.08 12.13 14.90 17.93 Ten largest 7.40 -15.92 17.88 -4.58 8.66 .64 39.61 20.64 Change in equity capital attributable to retained income (percent)' All banks 63.03 70.71 14.02 13.20 21.98 54.23 63.73 Small 78.49 121.49 314.35 80.17 99.28 197.18 117.60 180.04 Medium 51.90 36.98 45.75 51.97 5.59 86.72 58.12 Large 65.73 50.52 26.37 5.89 61.27 40.42 Ten largest 71.28 91.51 55.24 29.39 23.56 67.91 NOTE. . . . Not applicable. 1. Calculated from year-end to year-end. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 Federal Reserve Bulletin • June 1994 talized institutions fell to 6V2 percent, about one- The rapid growth in bank stock prices slowed fifth of the proportion in 1990. in 1993, especially in the case of regional banks Equity capital increased about 20 percent at large (chart 13). Stock prices of money center banks rose banks, but only 4 percent at small banks, which 20 percent—more than twice as fast as the S&P have the highest capital ratios (table 7). Retained 500 stock index—but regional bank stock prices earnings accounted for about 70 percent of the edged up only 3 percent. A sell-off following the increase in capital at the ten largest banks, but only announcement of first-quarter results erased gains 40 percent of the increase at other large banks, as made early in the year. While money center stocks the latter depended more on sales of equity and rebounded over the summer, regional bank stocks capital infusions from their parent bank holding performed less well. Bank stock prices were batcompanies. The increase in equity capital boosted tered again in the fall, following the announcement risk-based capital ratios, with the ten largest banks of third-quarter results, but recovered somewhat experiencing the largest increase (chart 12).3 late in the year. 3. The agencies' risk-based capital guidelines are based upon DEVELOPMENTS IN 1994 the Basle Accord and were modified by the Federal Deposit Insurance Corporation Improvement Act of 1991. Tier 1 capital includes Over the first several months of 1994, market intermainly common equity and certain perpetual preferred stock. Tier 2 capital consists primarily of subordinated debt, non-tier 1 preferred est rates rose sharply as investors responded to data stock, and loan loss reserves. Risk-weighted assets are calculated indicating considerable momentum in the economy by multiplying the amount of assets and the credit equivalent and as the Federal Reserve took actions to move amount of off-balance-sheet items in each risk-weight category by a factor accounting for the credit risk of that category. For a monetary policy away from the accommodative summary of the evolution of risk-based capital standards, see Allan stance of recent years. Banks raised the prime rate D. Brunner and William B. English, "Profits and Balance Sheet about in line with the increase in money market Developments at U.S. Commercial Banks in 1992," Federal Reserve Bulletin (July 1993), pp. 661-62. rates, maintaining the wide spread that has prevailed during the past three years. Broad stock prices were mixed, with regional bank stocks out- 12. Risk-based captial ratios, by size of bank, 1990-93 performing money center stocks. Many analysts have indicated that market participants expected the enactment of interstate branching legislation and a consequent acceleration of mergers among regional institutions, which would increase the value of potential target banks. 13. Stock price indexes, 1987-94:Q1 — Tfenlargest — 5 Total (tier 1 + tier 2) ratio - —18 —15 NOTE. The data are weekly; the bank indexes run through March 30,1994, I 1 1 1 1 and the S&P 500 index runs through April 1, 1994. The bank indexes are for 1990 1991 1992 1993 nine money center banks and twenty regional banks as defined by Salomon Brothers. NOTE. The data are quarterly. For definitions of tier 1 and tier 2 capital, see text note 3. SOURCES. Salomon Brothers and Standard and Poor's Corp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 497 In the first quarter, asset growth accelerated at sumer installment loans and continued easing of the domestic offices of U.S. commercial banks. terms and standards on commercial and indus- Banks, apparently seeing the higher yields as at- trial loans. Deposit growth remained weak, in part tractive, purchased a large volume of government because banks only sluggishly adjusted deposit securities toward the end of the quarter. Other interest rates to rising market rates. Investors securities expanded briskly as well; but this expan- responded to the decline of securities prices by sion resulted almost entirely from the federal bank- reducing acquisitions of long-term mutual fund ing agencies' adoption of an accounting rule that shares and by stepping up purchases of money requires banks to report, except under special cir- market mutual fund shares. cumstances, the fair-market value of off-balance- Bank profitability appears to have remained sheet items. (Before the rule change, banks had strong in the first quarter of 1994, although a bit been permitted to report only the net amount of below the record level attained in 1993. Net interunrealized gains and losses from off-balance-sheet est margins likely declined somewhat, but loan loss items.) Consumer and commercial and industrial provisions remained low. In contrast to 1993, tradloans also expanded more rapidly in the new year. ing gains fell at several large banks, moderating the LPS data show increased willingness to make con- effect of one of last year's sources of income. A.l. Report of income, all insured domestic commercial banks and nondeposit trust companies, 1985-93 Millions of dollars Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Gross interest income 247,798 237,680 244,784 272,351 316,362 319,987 289,440 256,524 244,595 Taxable equivalent 258,920 250,198 250,914 278,080 320,729 323,801 292,780 259,648 247,530 Loans 183,438 175,601 180,407 201,549 237,288 238,503 214,005 186,075 178,336 Securities 37,700 38,372 39,438 42,003 46,636 50,969 52,570 51,799 48,630 Gross federal funds sold and reverse repurchase agreements 9,554 9,119 9,020 10,374 12,997 12,544 9,125 5,909 4,783 Other 17,108 14,589 15,918 18,425 19,440 17,969 13,740 12,740 12,846 Gross interest expense 157,102 142,804 144,975 165,001 204,581 204,703 167,693 122,494 105,531 Deposits 130,627 117,549 115,627 129,468 157,037 161,287 138,761 98,737 79,409 Gross federal funds purchased and repurchase agreements 16,585 15,900 15,917 18,621 24,826 22,728 14,375 9,280 8,442 Other 9,892 9,354 13,429 16,913 22,716 20,688 14,557 14,477 17,682 Net interest margin 90,696 94,876 99,809 107,350 111,781 115,284 121,747 134,030 139,064 Taxable equivalent 101,818 107,394 105,939 113,079 116,148 119,098 125,087 137,154 141,999 Loss provisions1 17,820 22,167 37,711 17,486 31,034 32,206 34,351 26,775 16,597 Noninterest income 31,261 36,149 41,867 45,539 51,582 55,607 60,880 67,214 75,931 Service charges on deposits 7,368 7,973 8,735 9,455 10,235 11,423 12,818 14,117 14,869 Fiduciary activities 5,478 6,328 7,143 7,454 8,302 8,880 9,466 10,451 11,192 Foreign-exchange gains and fees 1,504 1,649 2,496 2,179 2,231 2,816 2,623 3,347 3,231 Trading income 892 1,201 1,064 1,510 1,817 2,038 3,326 2,928 6,018 Other 16,020 18,994 22,428 24,942 28,998 30,451 32,648 36,371 40,625 Noninterest expense 82,456 90,528 97,666 102,005 108,558 116,380 125,961 132,838 140,294 Salaries and employee benefits 40,037 43,053 45,333 46,878 49,293 52,030 53,536 55,487 58,460 Premises and fixed assets 13,324 14,556 15,312 15,910 16,647 17,516 17,885 18,145 18,552 Other 29,094 32,919 37,020 39,216 42,618 46,834 54,540 59,207 63,281 Net noninterest margin -51,195 -54,379 -55,799 -56,466 -56,976 -60,773 -65,081 -65,624 -64,363 Gains on investment account securities 1,552 3,935 1,441 275 794 476 2,897 3,957 3,042 Income before taxes 23,233 22,267 7,741 33,672 24,569 22,780 25,214 45,589 61,146 Taxes 5,618 5,266 5,407 10,016 9,550 7,720 8,274 14,500 19,925 Extraordinary items 228 277 199 809 311 649 995 412 2,072 Net income 17,844 17,279 2,536 24,468 15,307 15,705 17,927 31,502 43,295 Cash dividends declared 8,521 9,213 10,652 13,267 14,127 13,928 15,092 14,226 22,068 Retained income 9,321 8,066 -8,117 11,202 1,180 1,777 2,836 17,277 21,226 1. Includes provision for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 Federal Reserve Bulletin • June 1994 A.2. Portfolio composition, interest rates, and income and expense, all insured domestic commercial banks and nondeposit trust companies, by size of bank, 1985-93 A. All banks Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Balance sheet items as a percentage of average consolidated assets including loss reserves Interest-earning assets 86.68 87.10 87.48 88.00 87.92 87.81 88.03 88.33 88.50 Loans and leases, net 59.59 59.09 59.12 59.80 60.63 60.52 59.54 57.29 56.23 Commercial and industrial 22.16 20.87 19.98 19.50 19.09 18.50 17.33 15.78 14.90 U.S. addressees 17.41 16.84 16.57 16.55 16.54 15.99 15.00 13.54 12.74 Foreign addressees 4.75 4.02 3.41 2.95 2.55 2.51 2.33 2.24 2.16 Consumer 11.04 11.38 11.42 11.71 11.89 11.77 11.45 11.00 10.95 Credit card 2.63 2.98 3.17 3.47 3.69 3.78 3.88 3.79 3.83 Installment and other 8.41 8.40 8.26 8.24 8.20 7.99 7.57 7.20 7.12 Real estate 15.88 16.90 19.00 20.86 22.50 23.86 24.86 24.87 24.81 In domestic offices 15.42 16.35 18.40 20.18 21.78 23.10 24.10 24.19 24.19 Construction and land development ... 3.22 3.51 3.90 4.06 4.16 4.00 3.41 2.64 1.99 Farmland .41 .44 .47 .49 .51 .51 .53 .56 .57 One- to four-family residential 7.31 7.45 8.22 9.21 10.15 11.20 12.27 12.91 13.50 Home equity n.a. n.a. n.a. 1.14 1.42 1.67 1.95 2.09 2.07 Other n.a. n.a. n.a. 8.07 8.73 9.54 10.32 10.83 11.43 Multifamily residential .45 .50 .57 .59 .60 .63 .66 .75 .79 Nonfarm nonresidential 4.03 4.45 5.25 5.83 6.36 6.76 7.23 7.32 7.33 In foreign offices .46 .56 .60 .68 .72 .76 .76 .69 .62 Depository institutions 2.66 2.38 2.28 2.04 1.76 1.60 1.42 1.24 1.08 Foreign governments 1.56 1.43 1.35 1.22 1.03 .78 .75 .73 .67 Agricultural production 1.53 1.23 1.04 .98 .96 .95 1.01 1.02 1.00 Other loans 5.43 5.51 4.98 4.52 4.31 3.93 3.60 3.50 3.55 Unearned income on loans1 .71 .60 .52 .50 .48 .42 .36 .28 .21 Lease-financing receivables .84 .91 .98 1.06 1.10 1.12 1.09 1.03 .99 Loss reserves2 .81 .94 1.40 1.61 1.52 1.57 1.62 1.60 1.51 Securities 16.84 17.85 18.34 18.45 18.38 19.09 20.70 23.53 25.38 Investment account 15.62 16.28 17.00 17.17 17.13 17.63 18.93 21.19 22.51 Debt 15.62 16.28 17.00 17.17 16.84 17.36 18.62 20.82 22.13 U.S. Treasury 6.84 6.24 6.02 5.60 4.98 4.57 5.06 6.49 7.08 U.S. government agency and corporation obligations 2.80 3.07 4.14 4.88 6.03 7.56 8.74 9.86 10.74 Mortgage pass-through securities ... .96 1.13 2.10 2.59 3.27 4.08 4.51 4.52 4.74 Collateralized mortgage obligations n.a. n.a. n.a. n.a. n.a. 1.28 2.07 3.12 3.73 Other 1.84 1.94 2.04 2.29 2.77 2.20 2.16 2.21 2.26 State and local government 4.87 5.37 4.40 3.69 3.14 2.64 2.28 2.08 2.06 Tax-exempt n.a. n.a. 4.34 3.63 3.06 2.56 2.21 2.00 1.97 Taxable n.a. n.a. .06 .07 .08 .08 .07 .08 .09 Other 1.10 1.62 2.44 2.99 2.68 2.59 2.53 2.40 2.26 Equity3 n.a. n.a. n.a. n.a. .29 .27 .31 .36 .38 Trading account 1.22 1.57 1.34 1.28 1.25 1.46 1.77 2.34 2.87 Gross federal funds sold and reverse RPs 4.48 4.82 4.57 4.55 4.33 4.46 4.58 4.54 4.27 Interest-bearing balances at depositories 5.77 5.35 5.45 5.21 4.58 3.74 3.21 2.97 2.62 Non-interest-earning assets 13.32 12.90 12.52 12.00 12.08 12.19 11.97 11.67 11.50 Liabilities 93.74 93.69 93.83 93.84 93.63 93.59 93.33 92.82 92.15 Interest-bearing liabilities 72.85 73.13 74.03 75.40 76.02 76.53 76.58 75.32 73.92 Deposits 61.52 60.63 61.26 62.06 62.56 63.42 64.44 62.93 60.28 In foreign offices 12.28 11.27 11.02 10.41 9.68 9.25 8.55 8.38 8.32 In domestic offices 49.24 49.36 50.24 51.65 52.88 54.17 55.89 54.56 51.96 Other checkable deposits 4.58 5.19 6.04 6.25 6.12 6.19 6.72 7.65 8.25 Savings (including MMDAs) 16.45 17.46 18.28 17.60 16.27 16.58 17.98 20.26 20.91 Small denomination time deposits 16.78 15.85 15.06 16.25 18.37 19.96 21.29 19.21 16.99 Large denomination time deposits 11.43 10.86 10.86 11.55 12.12 11.43 9.90 7.43 5.81 Gross federal funds purchased and RPs 7.72 8.31 8.13 8.02 8.22 8.02 7.09 7.02 7.47 Other 3.61 4.19 4.64 5.31 5.25 5.08 5.04 5.37 6.17 Non-interest-bearing liabilities 20.88 20.56 19.80 18.44 17.61 17.06 16.75 17.50 18.23 Demand deposits in domestic offices 15.51 15.89 15.34 14.25 13.48 12.79 12.58 13.24 13.86 Other 5.37 4.67 4.46 4.20 4.13 4.27 4.17 4.26 4.36 Capital account 6.27 6.31 6.17 6.16 6.37 6.41 6.67 7.18 7.85 MEMO Commercial real estate loans n.a. n.a. n.a. n.a. n.a. n.a. 11.36 10.60 9.83 Other real estate owned .26 .30 .35 .39 .40 .51 .76 .82 .63 Managed liabilities 35.49 35.07 35.13 35.74 35.71 34.25 31.01 28.65 28.21 Average net consolidated assets (billions of dollars) 2,572 2,775 2,922 3,048 3,188 3,339 3,380 3,441 3,565 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 499 A.2.—Continued A. All banks Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Effective interest rate (percent)4 Rates earned Interest-earning assets 11.13 9.89 9.42 9.99 11.11 10.66 9.54 8.28 7.62 Taxable equivalent 11.63 10.41 9.66 10.20 11.27 10.79 9.65 8.38 7.72 Loans and leases, gross 11.98 10.78 10.22 10.79 11.99 11.47 10.35 9.20 8.69 Net of loss provisions 10.81 9.42 8.08 9.86 10.42 9.92 8.69 7.88 7.88 Securities 9.49 8.44 8.10 8.36 8.75 8.79 8.20 7.07 6.11 Taxable equivalent 11.05 10.09 8.96 9.06 9.26 9.22 8.55 7.35 6.36 Investment account 9.44 8.49 7.94 8.04 8.57 8.67 8.26 7.14 6.11 U.S. government and other debt 10.45 9.14 8.18 8.22 8.85 8.92 8.45 7.22 6.11 State and local 7.16 7.18 7.26 7.38 7.45 7.39 7.25 6.83 6.31 Equity3 n.a. n.a. n.a. n.a. 7.70 7.21 6.08 5.15 4.82 Trading account 10.10 7.83 10.02 12.63 11.11 10.16 7.52 6.40 6.16 Gross federal funds sold and reverse RPs .. 8.12 6.69 6.56 7.33 9.12 8.06 5.67 3.58 3.03 Interest-bearing balances at depositories — 9.47 7.85 7.55 8.69 10.57 9.96 8.43 7.31 6.61 Rates paid Interest-bearing liabilities 8.48 7.16 6.75 7.22 8.50 8.03 6.51 4.75 4.01 Interest-bearing deposits 8.18 6.92 6.37 6.81 7.85 7.56 6.31 4.50 3.64 In foreign offices 9.48 7.79 7.90 8.90 10.87 10.71 8.54 7.32 6.82 In domestic offices 7.87 6.74 6.04 6.39 7.30 7.01 5.96 4.07 3.14 Other checkable deposits n.a. n.a. 4.54 4.74 4.82 4.78 4.32 2.69 1.98 Savings (including MMDAs) n.a. n.a. 5.28 5.52 6.17 5.98 5.08 3.25 2.50 Large denomination CDs 8.73 7.33 6.86 7.37 8.62 8.02 6.66 4.92 4.00 Other time deposits n.a. n.a. 6.97 7.28 8.27 7.96 6.88 5.13 4.18 Gross federal funds purchased and RPs 7.97 6.78 6.51 7.30 9.18 7.95 5.73 3.65 3.07 Income and expenses as a percentage of average net consolidated assets Gross interest income 9.63 8.56 8.38 8.94 9.92 9.58 8.56 7.45 6.86 Taxable equivalent 10.07 9.02 8.59 9.12 10.06 9.70 8.66 7.55 6.94 Loans 7.13 6.33 6.17 6.61 7.44 7.14 6.33 5.41 5.00 Securities 1.47 1.38 1.35 1.38 1.46 1.53 1.56 1.51 1.36 Gross federal funds sold and reverse RPs .. .37 .33 .31 .34 .41 .38 .27 .17 .13 Other .67 .53 .54 .60 .61 .54 .41 .37 .36 Gross interest expense 6.11 5.15 4.96 5.41 6.42 6.13 4.96 3.56 2.96 Deposits 5.08 4.24 3.96 4.25 4.93 4.83 4.11 2.87 2.23 Gross federal funds purchased and RPs — .64 .57 .54 .61 .78 .68 .43 .27 .24 Other .38 .34 .46 .55 .71 .62 .43 .42 .50 Net interest margin 3.53 3.42 3.42 3.52 3.51 3.45 3.60 3.89 3.90 Taxable equivalent 3.96 3.87 3.63 3.71 3.64 3.57 3.70 3.99 3.98 Loss provisions5 .69 .80 1.29 .57 .97 .96 1.02 .78 .47 Noninterest income 1.22 1.30 1.43 1.49 1.62 1.67 1.80 1.95 2.13 Service charges on deposits .29 .29 .30 .31 .32 .34 .38 .41 .42 Fiduciary activities .21 .23 .24 .24 .26 .27 .28 .30 .31 Foreign-exchange gains and fees .06 .06 .09 .07 .07 .08 .08 .10 .09 Trading income .03 .04 .04 .05 .06 .06 .10 .09 .17 Other .62 .68 .77 .82 .91 .91 .97 1.06 1.14 Noninterest expense 3.21 3.26 3.34 3.35 3.41 3.49 3.73 3.86 3.94 Salaries and employee benefits 1.56 1.55 1.55 1.54 1.55 1.56 1.58 1.61 1.64 Premises and fixed assets .52 .52 .52 .52 .52 .52 .53 .53 .52 Other 1.13 1.19 1.27 1.29 1.34 1.40 1.61 1.72 1.78 Net noninterest margin -1.99 -1.96 -1.91 -1.85 -1.79 -1.82 -1.93 -1.91 -1.81 Gains on investment account securities .06 .14 .05 .01 .02 .01 .09 .11 .09 Income before taxes .90 .80 .26 1.10 .77 .68 .75 1.32 1.72 Taxes .22 .19 .19 .33 .30 .23 .24 .42 .56 Extraordinary items .01 .01 .01 .03 .01 .02 .03 .01 .06 Net income .69 .62 .09 .80 .48 .47 .53 .92 1.21 Cash dividends declared .33 .33 .36 .44 .44 .42 .45 .41 .62 Retained income .36 .29 -.28 .37 .04 .05 .08 .50 .60 MEMO: Return on equity 11.08 9.87 1.41 13.04 7.55 7.34 7.95 12.75 15.47 NOTE. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. 1. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 2. Includes allocated transfer risk reserve. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 3. As in the Call Report, equity securities are combined with "other debt securities" before 1989. 4. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report. 5. Includes provision for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 Federal Reserve Bulletin • June 1994 A.2. Portfolio composition, interest rates, and income and expense, all insured domestic commercial banks and nondeposit trust companies, by size of bank, 1985-93 B. Ten largest banks, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Balance sheet items as a percentage of average consolidated assets including loss reserves Interest-earning assets 84.33 85.08 85.14 85.22 85.16 84.85 85.41 85.16 84.79 Loans and leases, net 63.11 61.45 59.36 58.69 59.66 61.69 62.14 58.34 55.57 Commercial and industrial 30.68 26.68 24.53 23.36 22.61 22.91 22.42 20.32 18.65 U.S. addressees 15.33 13.74 13.31 13.01 13.18 13.39 13.44 12.00 10.75 Foreign addressees 15.35 12.95 11.22 10.36 9.43 9.53 8.97 8.32 7.90 Consumer 5.62 6.50 6.41 6.19 6.21 6.87 7.20 7.31 7.33 Credit card 2.14 2.46 2.34 2.08 1.99 2.20 2.53 2.61 2.50 Installment and other 3.49 4.03 4.07 4.10 4.22 4.67 4.67 4.70 4.83 Real estate 10.37 12.30 13.97 15.46 18.02 20.56 21.68 19.93 18.54 In domestic offices 8.67 10.22 11.69 12.80 15.05 17.36 18.37 17.07 15.99 Construction and land development ... 2.24 2.67 3.21 3.48 3.60 3.79 3.42 2.48 1.59 Farmland .07 .07 .06 .06 .08 .08 .08 .07 .07 One- to four-family residential 4.10 4.76 5.17 5.83 7.45 9.31 10.34 10.08 10.29 Home equity n.a. n.a. n.a. .76 1.04 1.31 1.63 1.63 1.60 Other n.a. n.a. n.a. 5.07 6.41 8.00 8.71 8.46 8.68 Multifamily residential .41 .48 .61 .65 .68 .68 .57 .58 .53 Nonfarm nonresidential 1.85 2.24 2.63 2.78 3.23 3.51 3.95 3.86 3.51 In foreign offices 1.71 2.07 2.28 2.66 2.97 3.20 3.32 2.85 2.55 Depository institutions 5.29 5.01 5.18 5.21 4.56 3.64 3.05 2.56 2.35 Foreign governments 3.94 3.77 3.64 3.63 3.34 2.76 2.88 2.75 2.46 Agricultural production .48 .42 .36 .33 .31 .31 .31 .28 .27 Other loans 6.67 6.85 6.51 6.23 6.36 6.05 5.61 6.05 6.82 Unearned income on loans1 .36 .39 .41 .43 .45 .39 .35 .27 .21 Lease-financing receivables 1.29 1.37 1.38 1.44 1.49 1.60 1.68 1.51 1.30 Loss reserves2 .87 1.06 2.22 2.74 2.77 2.63 2.34 2.08 1.94 Securities 9.29 11.71 12.59 12.96 13.13 14.03 15.58 19.13 22.74 Investment account 5.75 6.91 8.19 8.67 9.05 9.22 9.38 10.70 12.45 Debt 5.75 6.91 8.19 8.67 8.83 8.98 9.08 10.36 12.08 U.S. Treasury 1.89 1.60 1.47 1.41 1.29 1.09 1.35 2.30 2.39 U.S. government agency and corporation obligations .55 .68 1.54 1.94 2.29 2.91 3.46 4.45 6.14 Mortgage pass-through securities ... .46 .59 1.47 1.84 2.07 2.24 2.26 2.43 3.30 Collateralized mortgage obligations n.a. n.a. n.a. n.a. n.a. .55 1.12 1.97 2.76 Other .09 .09 .07 .10 .22 .13 .08 .05 .08 State and local government 1.53 1.99 1.93 1.80 1.58 1.08 .77 .66 .59 Tax-exempt n.a. n.a. 1.93 1.78 1.57 1.06 .77 .65 .58 Taxable n.a. n.a. .01 .01 .02 .02 .01 .01 Other 1.78 2.64 3.25 3.52 3.67 3.90 3.50 2.95 2.97 Equity3 n.a. n.a. n.a. n.a. .22 .24 .30 .33 .36 Trading account 3.55 4.80 4.40 4.29 4.08 4.81 6.19 8.43 10.30 Gross federal funds sold and reverse RPs 3.53 3.57 3.91 4.61 4.12 2.88 2.96 3.23 2.71 Interest-bearing balances at depositories 8.39 8.35 9.28 8.97 8.26 6.25 4.74 4.45 3.76 Non-interest-earmng assets 15.67 14.92 14.86 14.78 14.84 15.15 14.59 14.84 15.21 Liabilities 95.18 95.13 95.58 95.41 95.11 95.29 94.97 94.44 93.24 Interest-bearing liabilities 72.45 72.61 73.08 73.76 74.17 73.97 74.62 73.08 71.56 Deposits 57.44 56.56 57.46 57.67 57.56 57.95 57.67 55.73 52.91 In foreign offices 34.60 32.43 32.60 31.49 30.08 29.66 28.47 27.16 25.51 In domestic offices 22.85 24.14 24.86 26.18 27.49 28.28 29.19 28.56 27.41 Other checkable deposits 1.27 1.89 2.45 2.68 2.70 2.74 3.00 3.38 3.45 Savings (including MMDAs) 8.81 10.32 11.04 11.42 11.32 12.05 13.50 14.91 15.33 Small denomination time deposits 4.65 4.59 4.55 5.03 5.64 6.16 6.55 5.72 5.09 Large denomination time deposits 8.12 7.34 6.82 7.05 7.82 7.33 6.14 4.56 3.53 Gross federal funds purchased and RPs 7.95 8.08 6.89 6.40 6.72 6.90 6.80 6.19 6.70 Other 7.06 7.96 8.74 9.69 9.89 9.13 10.15 11.16 11.94 Non-interest-bearing liabilities 22.72 22.52 22.50 21.65 20.94 21.32 20.35 21.36 21.68 Demand deposits in domestic offices 11.34 12.55 12.64 11.93 11.60 10.93 10.36 11.05 11.27 Other 11.38 9.97 9.86 9.71 9.34 10.39 9.99 10.30 10.41 Capital account 4.82 4.87 4.42 4.59 4.89 4.71 5.03 5.56 6.76 MEMO Commercial real estate loans n.a. n.a. n.a. n.a. n.a. n.a. 8.47 7.43 5.92 Other real estate owned .14 .18 .21 .22 .23 .42 .78 1.13 1.02 Managed liabilities 59.32 57.37 56.79 56.34 56.24 54.74 53.18 50.76 49.17 Average net consolidated assets (billions of dollars) 646 681 691 685 693 725 717 775 818 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 501 A.2.—Continued B. Ten largest banks, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Effective interest rate (percent)4 Rates earned Interest-earning assets 11.28 9.69 9.56 10.74 12.30 11.63 9.91 8.68 8.16 Taxable equivalent 11.60 10.03 9.59 10.87 12.31 11.70 9.95 8.72 8.20 Loans and leases, gross 11.91 10.39 10.13 11.33 13.18 12.28 10.45 9.36 9.07 Net of loss provisions 10.74 9.09 6.63 10.68 10.86 11.10 8.59 7.50 7.95 Securities 10.03 8.54 9.49 10.51 10.05 9.76 8.50 7.42 6.68 Taxable equivalent 10.89 9.56 9.66 11.06 10.09 10.01 8.64 7.54 6.77 Investment account 9.81 8.78 8.69 8.65 9.12 9.21 8.95 8.03 6.88 U.S. government and other debt 10.80 9.39 9.06 8.91 9.50 9.54 9.25 8.20 6.96 State and local 7.05 7.28 7.50 7.68 7.63 7.53 7.59 7.38 7.11 Equity3 n.a. n.a. n.a. n.a. 7.05 5.71 4.22 4.17 3.80 Trading account 10.35 8.18 10.96 14.33 12.13 10.75 7.84 6.69 6.45 Gross federal funds sold and reverse RPs .. 7.72 6.24 6.13 7.31 8.97 8.01 5.60 3.65 3.02 Interest-bearing balances at depositories 9.61 7.90 7.68 9.13 10.88 11.06 10.05 9.29 8.34 Rates paid Interest-bearing liabilities 9.38 7.63 7.83 8.74 10.74 10.18 7.70 6.17 5.60 Interest-bearing deposits 8.68 7.11 6.97 7.76 9.19 9.03 7.09 5.33 4.50 In foreign offices 9.58 7.88 8.00 9.00 10.96 11.11 8.76 7.55 6.87 In domestic offices 7.52 6.22 5.63 6.26 7.27 6.81 5.46 3.24 2.36 Other checkable deposits n.a. n.a. 3.26 4.41 4.39 4.35 3.92 1.96 1.28 Savings (including MMDAs) n.a. n.a. 5.13 5.53 6.48 6.21 5.08 2.95 2.14 Large denomination CDs 9.03 7.23 7.29 7.73 8.87 7.95 6.49 4.66 3.55 Other time deposits n.a. n.a. 6.38 7.08 8.25 7.75 6.07 3.81 3.01 Gross federal funds purchased and RPs 7.99 6.87 6.52 7.41 9.27 7.75 5.98 4.04 3.26 Income and expenses as a percentage of average net consolidated assets Gross interest income 9.49 8.19 8.45 9.51 10.82 10.37 8.77 7.68 7.22 Taxable equivalent 9.76 8.48 8.48 9.62 10.83 10.43 8.80 7.72 7.25 Loans 7.45 6.28 6.23 6.92 8.22 7.96 6.77 5.65 5.22 Securities .56 .61 .71 .75 .83 .86 .84 .85 .86 Gross federal funds sold and reverse RPs .. .29 .26 .29 .40 .37 .25 .17 .14 .11 Other 1.19 1.04 1.22 1.44 1.39 1.30 .98 1.05 1.04 Gross interest expense 6.75 5.48 5.77 6.50 8.01 7.65 5.81 4.54 4.06 Deposits 5.15 4.15 4.18 4.55 5.37 5.41 4.23 3.09 2.48 Gross federal funds purchased and RPs — .74 .60 .52 .58 .72 .64 .43 .28 .24 Other .86 .73 1.07 1.37 1.92 1.60 1.15 1.17 1.35 NNeett iinntteerreesstt mmaarrggiinn 2.74 2.71 2.68 3.01 2.81 2.72 2.95 3.15 3.16 TTaaxxaabbllee eeqquuiivvaalleenntt 3.01 3.00 2.71 3.12 2.82 2.78 2.99 3.18 3.19 Loss provisions5 .73 .79 2.15 .40 1.45 .77 1.21 1.12 .64 Noninterest income 1.33 1.58 1.94 2.07 2.19 2.27 2.40 2.59 2.99 Service charges on deposits .11 .13 .16 .19 .21 .23 .26 .30 .30 Fiduciary activities .18 .21 .23 .23 .27 .31 .33 .37 .39 Foreign-exchange gains and fees .19 .20 .29 .26 .25 .30 .28 .36 .31 Trading income .05 .08 .10 .15 .17 .21 .36 .30 .60 Other .80 .97 1.16 1.24 1.29 1.21 1.16 1.27 1.38 Noninterest expense 2.68 2.95 3.20 3.28 3.43 3.55 3.83 3.86 4.13 Salaries and employee benefits 1.36 1.50 1.60 1.63 1.66 1.74 1.79 1.78 1.88 Premises and fixed assets .48 .54 .58 .60 .62 .65 .66 .65 .66 Other .84 .91 1.03 1.05 1.15 1.16 1.38 1.43 1.59 Net noninterest margin -1.35 -1.37 -1.26 -1.21 -1.24 -1.28 -1.43 -1.27 -1.14 Gains on investment account securities .06 .12 .07 .03 .03 .02 .04 .11 .13 Income before taxes .71 .68 -.66 1.43 .16 .69 .35 .87 1.50 Taxes .25 .22 .14 .44 .38 .27 .17 .26 .53 Extraordinary items * * * .08 .03 .06 .03 * .16 Net income .46 .46 -.80 1.07 -.19 .48 .22 .61 1.13 Cash dividends declared .24 .21 .28 .38 .37 .26 .21 .18 .28 Retained income .22 .25 -1.08 .69 -.57 .22 .01 .43 .85 MEMO: Return on equity 9.59 9.46 -18.11 23.28 -3.92 10.13 4.35 10.91 16.75 NOTE. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. * In absolute value, less than 0.005 percent. 1. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 2. Includes allocated transfer risk reserve. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 3. As in the Call Report, equity securities are combined with "other debt securities" before 1989. 4. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report. 5. Includes provision for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 Federal Reserve Bulletin • June 1994 A.2. Portfolio composition, interest rates, and income and expense, all insured domestic commercial banks and nondeposit trust companies, by size of bank, 1985-93 C. Banks ranked 11th through 100th, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Balance sheet items as a percentage of average consolidated assets including loss reserves Interest-earning assets 84.91 85.64 86.20 87.23 86.91 86.81 86.87 87.97 88.36 Loans and leases, net 61.88 61.77 61.70 61.99 62.61 61.22 60.08 58.30 57.33 Commercial and industrial 24.20 24.13 23.72 23.45 22.75 21.76 20.53 18.83 18.04 U.S. addressees 21.09 21.21 21.22 21.43 21.23 20.44 19.30 17.78 17.06 Foreign addressees 3.11 2.92 2.50 2.02 1.53 1.33 1.24 1.05 .98 Consumer 11.19 11.80 11.73 12.20 12.97 12.25 11.66 11.72 11.47 Credit card 4.16 4.50 4.40 4.85 5.82 5.49 5.04 5.16 5.23 Installment and other 7.04 7.30 7.33 7.35 7.16 6.76 6.62 6.56 6.24 Real estate 13.76 13.94 16.05 17.94 19.09 20.21 21.51 21.89 22.12 In domestic offices 13.65 13.77 15.83 17.65 18.85 20.03 21.37 21.78 22.02 Construction and land development ... 4.46 4.79 5.24 5.27 5.25 4.91 4.00 3.02 2.08 Farmland .08 .09 .10 .11 .12 .12 .12 .14 .13 One- to four-family residential 5.71 5.27 5.88 6.85 7.54 8.53 10.17 11.36 12.30 Home equity n.a. n.a. n.a. 1.17 1.41 1.66 2.07 2.50 2.54 Other n.a. n.a. n.a. 5.68 6.13 6.86 8.10 8.85 9.76 Multifamily residential .31 .32 .39 .43 .45 .46 .54 .66 .71 Nonfarm nonresidential 3.09 3.30 4.22 4.99 5.49 6.01 6.53 6.61 6.79 In foreign offices .12 .17 .22 .29 .24 .18 .14 .11 .10 Depository institutions 3.37 2.83 2.51 1.84 1.55 1.57 1.58 1.43 1.30 Foreign governments 1.91 1.65 1.53 1.22 .88 .52 .39 .33 .30 Agricultural production .51 .36 .30 .29 .29 .28 .31 .31 .29 Other loans 7.18 7.26 6.25 5.54 5.17 4.82 4.55 4.28 4.04 Unearned income on loans1 .56 .49 .40 .37 .34 .26 .22 .17 .11 Lease-financing receivables 1.20 1.33 1.52 1.69 1.73 1.67 1.53 1.49 1.47 Loss reserves2 .90 1.03 1.51 1.80 1.48 1.60 1.76 1.79 1.60 Securities 11.55 14.11 15.26 15.54 15.21 16.20 17.38 20.38 21.96 Investment account 10.54 13.02 14.45 14.73 14.38 15.32 16.24 19.24 20.59 Debt 10.54 13.02 14.45 14.73 14.16 15.14 16.02 18.99 20.34 U.S. Treasury 4.54 4.69 5.06 4.89 4.10 3.42 3.78 5.88 7.05 U.S. government agency and corporation obligations 1.32 2.05 3.13 3.58 5.01 7.42 8.43 9.26 9.54 Mortgage pass-through securities ... .81 1.40 2.36 2.96 4.03 5.32 5.38 5.22 5.21 Collateralized mortgage obligations n.a. n.a. n.a. n.a. n.a. 1.57 2.48 3.54 3.73 Other .52 .65 .77 .61 .98 .53 .57 .50 .61 State and local government 3.93 5.08 4.07 3.32 2.70 2.03 1.63 1.46 1.32 Tax-exempt n.a. n.a. 4.05 3.30 2.65 2.00 1.61 1.43 1.29 Taxable n.a. n.a. .01 .02 .05 .03 .02 .03 .03 Other .75 1.20 2.18 2.94 2.35 2.27 2.19 2.39 2.43 Equity3 n.a. n.a. n.a. n.a. .22 .18 .22 .25 .26 Trading account 1.01 1.09 .81 .82 .83 .88 1.13 1.14 1.37 Gross federal funds sold and reverse RPs 3.69 3.17 3.07 3.68 3.71 4.41 4.90 4.78 4.98 Interest-bearing balances at depositories 7.79 6.58 6.16 6.01 5.38 4.98 4.51 4.52 4.08 Non-interest-earning assets 15.09 14.36 13.80 12.77 13.09 13.19 13.13 12.03 11.64 Liabilities 94.50 94.36 94.56 94.77 94.45 94.35 93.93 93.13 92.56 Interest-bearing liabilities 71.28 71.54 73.01 75.33 76.23 77.02 76.06 74.66 73.38 Deposits 53.99 51.42 52.61 55.02 56.45 57.46 59.23 56.99 54.22 In foreign offices 11.85 10.45 10.14 9.68 8.63 7.84 6.69 6.20 6.78 In domestic offices 42.14 40.97 42.48 45.34 47.82 49.62 52.54 50.79 47.44 Other checkable deposits 3.57 3.84 4.42 4.68 4.67 4.75 5.36 6.26 7.21 Savings (including MMDAs) 14.73 15.17 16.02 15.67 14.58 15.50 17.62 20.21 20.60 Small denomination time deposits 11.40 10.31 9.63 11.05 13.49 15.59 17.99 15.98 14.19 Large denomination time deposits 12.44 11.65 12.40 13.95 15.08 13.79 11.56 8.34 5.44 Gross federal funds purchased and RPs 13.13 14.80 14.52 13.72 13.22 13.03 10.94 11.45 11.93 Other 4.15 5.31 5.87 6.59 6.57 6.53 5.89 6.22 7.23 Non-interest-bearing liabilities 23.22 22.82 21.55 19.44 18.22 17.33 17.87 18.47 19.18 Demand deposits in domestic offices 17.13 17.61 16.62 15.04 13.86 13.23 13.76 14.52 15.38 Other 6.09 5.21 4.93 4.40 4.36 4.10 4.11 3.95 3.80 Capital account 5.50 5.64 5.44 5.23 5.55 5.65 6.07 6.87 7.44 MEMO Commercial real estate loans n.a. n.a. n.a. n.a. n.a. n.a. 11.27 10.43 9.58 Other real estate owned .19 .17 .22 .31 .30 .46 .76 .70 .47 Managed liabilities 41.85 42.56 43.29 44.27 43.81 41.50 35.41 32.53 31.69 Average net consolidated assets (billions of dollars) 668 735 802 870 940 995 1,006 1,003 1,083 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 503 A.2.—Continued C. Banks ranked 11th through 100th, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Effective interest rate (percent)4 Rates earned Interest-earning assets 10.94 9.71 9.19 9.68 11.08 10.43 9.20 7.99 7.38 Taxable equivalent 11.48 10.32 9.41 9.89 11.23 10.53 9.29 8.07 7.46 Loans and leases, gross 11.61 10.45 9.77 10.29 11.70 11.07 9.84 8.74 8.26 Net of loss provisions 10.58 9.15 7.33 9.40 9.85 9.06 7.91 7.45 7.46 Securities 9.14 8.05 7.88 8.09 8.81 8.83 8.21 7.07 6.14 Taxable equivalent 10.94 10.08 8.69 8.83 9.34 9.15 8.49 7.30 6.33 Investment account 9.10 8.17 7.93 8.11 8.82 8.89 8.34 7.20 6.24 U.S. government and other debt 10.34 8.97 8.26 8.36 9.16 9.15 8.48 7.24 6.23 State and local 6.88 6.93 7.10 7.25 7.38 7.28 7.23 6.83 6.47 Equity3 n.a. n.a. n.a. n.a. 8.75 8.07 7.25 6.27 5.57 Trading account 9.56 6.55 6.99 7.67 8.66 8.01 6.45 4.73 4.74 Gross federal funds sold and reverse RPs .. 8.16 6.57 6.58 6.73 9.29 8.11 5.77 3.70 3.12 Interest-bearing balances at depositories 9.40 7.86 7.68 8.83 11.33 9.72 8.13 6.76 6.50 Rates paid Interest-bearing liabilities 8.45 7.10 6.75 7.16 8.63 7.94 6.33 4.42 3.76 Interest-bearing deposits 8.14 6.89 6.42 6.86 8.10 7.53 6.19 4.30 3.52 In foreign offices 9.31 7.66 7.78 8.87 11.07 10.08 8.37 7.26 7.37 In domestic offices 7.84 6.70 6.10 6.43 7.57 7.12 5.91 3.95 2.99 Other checkable deposits n.a. n.a. 4.43 4.41 4.54 4.64 4.14 2.43 1.70 Savings (including MMDAs) n.a. n.a. 5.27 5.56 6.40 6.05 4.96 3.07 2.33 Large denomination CDs 8.74 7.41 7.01 7.41 8.68 8.09 6.71 5.09 4.30 Other time deposits n.a. n.a. 7.06 7.33 8.67 8.06 6.83 5.06 4.07 Gross federal funds purchased and RPs 8.03 6.84 6.63 7.23 9.33 8.11 5.70 3.57 3.04 Income and expenses as a percentage of average net consolidated assets Gross interest income 9.19 8.17 8.04 8.55 9.74 9.28 8.14 7.12 6.58 Taxable equivalent 9.64 8.68 8.23 8.74 9.87 9.37 8.22 7.19 6.65 Loans 7.15 6.35 6.19 6.57 7.48 6.99 6.07 5.23 4.85 Securities .95 1.06 1.14 1.20 1.26 1.36 1.34 1.37 1.27 Gross federal funds sold and reverse RPs .. .28 .20 .20 .22 .36 .37 .28 .19 .15 Other .81 .56 .51 .56 .65 .56 .45 .34 .32 Gross interest expense 5.89 4.94 4.85 5.32 6.47 6.07 4.74 3.26 2.74 Deposits 4.42 3.57 3.40 3.78 4.57 4.35 3.70 2.48 1.93 Gross federal funds purchased and RPs 1.06 1.00 .96 1.00 1.24 1.12 .67 .43 .38 Other .40 .37 .48 .54 .66 .60 .38 .35 .43 Net interest margin 3.30 3.23 3.19 3.23 3.27 3.22 3.40 3.86 3.85 Taxable equivalent 3.75 3.74 3.38 3.42 3.40 3.30 3.47 3.93 3.91 Loss provisions5 .63 .79 1.55 .57 1.18 1.27 1.19 .78 .47 Noninterest income 1.40 1.44 1.53 1.60 1.86 1.84 2.03 2.25 2.29 Service charges on deposits .27 .27 .29 .30 .30 .34 .40 .44 .46 Fiduciary activities .31 .34 .36 .34 .35 .33 .36 .38 .38 Foreign-exchange gains and fees .04 .03 .05 .04 .05 .06 .05 .05 .05 Trading income .05 .05 .02 .03 .04 .03 .05 .04 .08 Other .74 .75 .81 .88 1.12 1.09 1.18 1.33 1.32 Noninterest expense 3.17 3.15 3.23 3.18 3.32 3.43 3.72 3.98 3.95 Salaries and employee benefits 1.55 1.49 1.48 1.46 1.47 1.46 1.50 1.53 1.52 Premises and fixed assets .51 .49 .49 .49 .50 .49 .50 .49 .48 Other 1.11 1.16 1.26 1.24 1.35 1.48 1.72 1.95 1.95 Net noninterest margin -1.77 -1.71 -1.70 -1.59 -1.46 -1.59 -1.69 -1.73 -1.66 Gains on investment account securities .05 .17 .05 • .04 .03 .14 .15 .09 Income before taxes .95 .91 * 1.08 .67 .38 .66 1.50 1.82 Taxes .21 .20 .09 .28 .18 .15 .19 .48 .56 Extraordinary items .01 .01 • .02 * .01 .03 .03 * Net income .74 .72 -.09 .81 .49 .24 .51 1.04 1.26 Cash dividends declared .26 .32 .34 .41 .40 .37 .47 .46 .76 Retained income .48 .39 -.43 .40 .09 -.13 .04 .58 .49 MEMO: Return on equity 13.48 12.71 -1.69 15.52 8.81 4.29 8.34 15.18 16.88 NOTE. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. * In absolute value, less than 0.005 percent. 1. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 2. Includes allocated transfer risk reserve. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 3. As in the Call Report, equity securities are combined with "other debt securities" before 1989. 4. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report. 5. Includes provision for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 Federal Reserve Bulletin • June 1994 A.2. Portfolio composition, interest rates, and income and expense, all insured domestic commercial banks and nondeposit trust companies, by size of bank, 1985-93 D. Banks ranked 101st through 1,000th, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Balance sheet items as a percentage of average consolidated assets including loss reserves Interest-earning assets 87.82 87.92 88.34 88.88 88.95 88.81 88.88 89.02 89.53 Loans and leases, net 59.27 59.77 61.60 63.03 63.61 63.07 61.01 58.45 57.83 Commercial and industrial 19.02 18.47 18.12 17.83 17.68 16.68 15.05 13.35 12.27 U.S. addressees 18.69 18.22 17.87 17.67 17.53 16.56 14.89 13.18 12.10 Foreign addressees .33 .25 .24 .16 .15 .13 .16 .18 .16 Consumer 14.46 14.69 15.34 15.91 15.47 15.47 15.10 14.07 14.54 Credit card 3.50 4.01 4.65 5.21 4.82 5.22 5.71 5.25 5.33 Installment and other 10.96 10.68 10.69 10.70 10.65 10.25 9.39 8.82 9.21 Real estate 18.86 19.79 22.25 24.28 25.97 27.01 27.52 28.15 28.68 In domestic offices 18.86 19.78 22.25 24.27 25.95 26.98 27.47 28.11 28.65 Construction and land development ... 3.94 4.18 4.57 4.73 4.82 4.37 3.66 2.86 2.27 Farmland .23 .25 .26 .27 .27 .28 .28 .32 .34 One- to four-family residential 8.42 8.49 9.48 10.64 11.55 12.48 13.22 14.28 15.22 Home equity n.a. n.a. n.a. 1.73 2.08 2.31 2.53 2.57 2.51 Other n.a. n.a. n.a. 8.91 9.47 10.17 10.68 11.71 12.70 Multifamily residential .59 .66 .68 .67 .70 .74 .80 .96 1.07 Nonfarm nonresidential 5.68 6.21 7.26 7.97 8.62 9.12 9.51 9.70 9.76 In foreign offices * .01 .01 .01 .01 .03 .05 .04 .02 Depository institutions 1.58 1.36 1.13 1.01 .92 1.05 .93 .81 .44 Foreign governments .30 .26 .25 .20 .16 .09 .07 .05 .03 Agricultural production .75 .62 .48 .47 .45 .47 .49 .54 .56 Other loans 5.30 5.44 4.94 4.23 3.77 3.17 2.81 2.47 2.17 Unearned income on loans1 .88 .71 .61 .60 .56 .50 .40 .30 .20 Lease-financing receivables .64 .71 .72 .78 .82 .83 .85 .79 .77 Loss reserves2 .77 .87 1.01 1.07 1.07 1.20 1.42 1.48 1.42 Securities 19.60 19.28 18.72 18.52 18.74 19.33 21.28 24.16 26.00 Investment account 19.36 18.95 18.50 18.25 18.37 18.86 20.91 23.81 25.71 Debt 19.36 18.95 18.50 18.25 18.01 18.53 20.55 23.36 25.23 U.S. Treasury 8.63 7.58 7.14 6.52 5.90 5.43 6.16 7.76 8.66 U.S. government agency and corporation obligations 3.37 3.32 4.06 4.81 6.06 7.74 9.35 11.10 12.37 Mortgage pass-through securities ... 1.06 1.13 1.89 2.33 3.03 3.83 4.51 4.75 4.99 Collateralized mortgage obligations n.a. n.a. n.a. n.a. n.a. 1.74 2.73 3.% 4.84 Other 2.31 2.19 2.17 2.48 3.03 2.17 2.11 2.39 2.55 State and local government 6.18 6.48 5.03 4.10 3.49 3.11 2.65 2.27 2.26 Tax-exempt n.a. n.a. 4.97 4.06 3.44 3.05 2.59 2.20 2.18 Taxable n.a. n.a. .05 .05 .05 .06 .06 .07 .08 Other 1.19 1.57 2.26 2.82 2.56 2.25 2.38 2.23 1.94 Equity3 n.a. n.a. n.a. n.a. .35 .32 .37 .45 .47 Trading account .24 .33 .22 .28 .38 .48 .37 .35 .29 Gross federal funds sold and reverse RPs 5.15 5.66 4.94 4.45 4.11 4.51 4.70 4.93 4.50 Interest-bearing balances at depositories 3.80 3.22 3.08 2.87 2.49 1.90 1.90 1.48 1.21 Non-interest-earning assets 12.18 12.08 11.66 11.12 11.05 11.19 11.12 10.98 10.47 Liabilities 93.44 93.33 93.28 93.34 93.26 93.07 92.89 92.47 91.86 Interest-bearing liabilities 72.90 73.01 73.92 75.59 76.42 77.05 77.26 75.97 74.42 Deposits 62.62 62.17 62.43 63.00 63.66 65.00 66.30 65.66 63.20 In foreign offices 2.00 2.07 1.96 2.04 2.09 1.65 1.76 1.56 1.44 In domestic offices 60.62 60.10 60.47 60.97 61.57 63.35 64.55 64.10 61.76 Other checkable deposits 5.55 6.25 7.27 7.39 7.13 7.30 7.83 9.15 9.98 Savings (including MMDAs) 21.50 22.37 22.83 21.27 19.49 19.68 20.72 23.31 24.09 Small denomination time deposits 19.92 18.66 17.75 19.34 22.05 24.08 25.21 23.59 20.87 Large denomination time deposits 13.65 12.83 12.62 12.96 12.89 12.30 10.79 8.05 6.82 Gross federal funds purchased and RPs 7.90 8.21 8.46 8.63 9.20 8.42 7.46 7.13 7.39 Other 2.38 2.63 3.03 3.96 3.56 3.62 3.50 3.17 3.83 Non-interest-bearing liabilities 20.53 20.32 19.36 17.74 16.84 16.02 15.63 16.50 17.44 Demand deposits in domestic offices 18.29 18.25 17.35 15.84 14.84 14.06 13.56 14.41 15.11 Other 2.24 2.08 2.00 1.90 2.00 1.96 2.07 2.09 2.33 Capital account 6.56 6.67 6.72 6.66 6.74 6.93 7.11 7.53 8.14 MEMO Commercial real estate loans n.a. n.a. n.a. n.a. n.a. n.a. 13.86 12.97 12.32 Other real estate owned .28 .30 .37 .42 .47 .56 .79 .81 .58 Managed liabilities 25.88 25.67 26.00 27.51 27.69 25.97 23.49 19.91 19.48 Average net consolidated assets (billions of dollars) 638 710 771 839 892 938 961 966 975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 505 A.2.—Continued D. Banks ranked 101st through 1,000th, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Effective interest rate (percent)4 Rates earned Interest-earning assets 10.96 9.91 9.45 9.90 10.72 10.42 9.54 8.14 7.40 Taxable equivalent 11.57 10.52 9.80 10.15 10.93 10.57 9.68 8.26 7.51 Loans and leases, gross 11.89 10.83 10.30 10.75 11.57 11.20 10.40 9.11 8.52 Net of loss provisions 10.89 9.60 9.05 9.60 10.42 9.47 8.70 7.84 7.74 Securities 9.19 8.29 7.67 7.85 8.35 8.54 8.14 6.90 5.81 Taxable equivalent 10.89 10.09 8.77 8.59 8.98 9.02 8.54 7.20 6.08 Investment account 9.19 8.30 7.70 7.86 8.36 8.51 8.16 6.91 5.82 U.S. government and other debt 10.25 8.99 7.95 8.07 8.65 8.78 8.34 6.97 5.79 State and local 6.91 6.98 7.03 7.15 7.28 7.32 7.25 6.85 6.31 Equity3 n.a. n.a. n.a. n.a. 7.10 6.95 5.79 4.88 4.85 Trading account 8.88 7.42 5.80 6.96 7.61 9.92 6.86 5.62 4.82 Gross federal funds sold and reverse RPs .. 8.22 6.84 6.62 7.47 8.95 7.98 5.63 3.47 2.99 Interest-bearing balances at depositories — 9.15 7.53 7.03 7.82 9.18 8.51 6.81 4.61 3.49 Rates paid Interest-bearing liabilities 8.02 6.92 6.29 6.70 7.69 7.25 6.08 4.19 3.31 Interest-bearing deposits 7.85 6.75 6.08 6.49 7.33 7.05 6.04 4.16 3.24 In foreign offices 8.65 6.94 6.77 7.65 8.98 8.12 6.38 4.25 3.35 In domestic offices 7.82 6.76 6.06 6.45 7.28 7.02 6.03 4.16 3.24 Other checkable deposits n.a. n.a. 4.64 4.77 4.86 4.75 4.28 2.67 2.01 Savings (including MMDAs) n.a. n.a. 5.28 5.53 6.11 5.98 5.12 3.34 2.57 Large denomination CDs 8.61 7.30 6.79 7.39 8.64 8.03 6.61 4.73 3.84 Other time deposits n.a. n.a. 7.14 7.45 8.28 8.03 7.05 5.33 4.37 Gross federal funds purchased and RPs 7.87 6.60 6.34 7.39 8.96 7.86 5.61 3.46 2.95 Income and expenses as a percentage of average net consolidated assets Gross interest income 9.61 8.67 8.38 8.86 9.64 9.36 8.61 7.35 6.69 Taxable equivalent 10.15 9.21 8.70 9.09 9.83 9.51 8.74 7.46 6.79 Loans 7.06 6.48 6.43 6.88 7.49 7.20 6.49 5.45 5.02 Securities 1.77 1.57 1.42 1.43 1.53 1.60 1.70 1.64 1.48 Gross federal funds sold and reverse RPs .. .43 .37 .31 .32 .37 .36 .27 .17 .13 Other .36 .25 .22 .24 .25 .19 .15 .08 .06 Gross interest expense 5.75 4.94 4.57 5.02 5.81 5.53 4.66 3.16 2.45 Deposits 4.92 4.21 3.81 4.09 4.67 4.58 4.01 2.74 2.06 Gross federal funds purchased and RPs .63 .55 .53 .64 .83 .67 .42 .25 .22 Other .20 .19 .23 .29 .32 .29 .23 .17 .17 Net interest margin 3.86 3.73 3.81 3.85 3.82 3.83 3.95 4.19 4.25 Taxable equivalent 4.39 4.27 4.12 4.07 4.01 3.97 4.08 4.30 4.34 Loss provisions5 .59 .74 .78 .74 .74 1.11 1.06 .76 .46 Noninterest income 1.28 1.30 1.35 1.36 1.38 1.49 1.64 1.67 1.78 Service charges on deposits .35 .34 .34 .34 .35 .37 .40 .44 .44 Fiduciary activities .26 .25 .25 .25 .25 .26 .27 .28 .29 Foreign-exchange gains and fees .01 .01 .01 • .01 • .01 * .01 Trading income .04 .04 .03 .03 .03 .02 .03 .02 .02 Other .63 .67 .72 .74 .74 .84 .94 .93 1.02 Noninterest expense 3.55 3.50 3.52 3.50 3.43 3.50 3.75 3.86 3.87 Salaries and employee benefits 1.67 1.59 1.54 1.49 1.47 1.47 1.47 1.50 1.51 Premises and fixed assets .55 .53 .52 .50 .49 .49 .49 .49 .48 Other 1.34 1.38 1.47 1.51 1.47 1.55 1.79 1.86 1.88 Net noninterest margin -2.28 -2.20 -2.17 -2.14 -2.04 -2.00 -2.11 -2.19 -2.09 Gains on investment account securities .05 .12 .04 * .01 .01 .09 .10 .06 Income before taxes 1.05 .91 .89 .97 1.05 .72 .87 1.35 1.76 Taxes .21 .18 .27 .32 .32 .21 .29 .44 .59 Extraordinary items .02 .01 .02 .01 * * .03 * .04 Net income .85 .74 .64 .67 .74 .51 .61 .92 1.21 Cash dividends declared .40 .40 .44 .48 .48 .53 .58 .48 .78 Retained income .45 .34 .20 .18 .25 -.01 .03 .44 .43 MEMO: Return on equity 12.99 11.09 9.53 10.00 10.94 7.44 8.60 12.22 14.85 NOTE. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. * In absolute value, less than 0.005 percent. 1. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 2. Includes allocated transfer risk reserve. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 3. As in the Call Report, equity securities are combined with "other debt securities" before 1989. 4. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report. 5. Includes provision for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 Federal Reserve Bulletin • June 1994 A.2. Portfolio composition, interest rates, and income and expense, all insured domestic commercial banks and nondeposit trust companies, by size of bank, 1985-93 E. Banks not ranked among the 1,000 largest, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Balance sheet items as a percentage of average consolidated assets including loss reserves Interest-earning assets 89.87 90.00 90.50 90.81 90.88 91.05 91.23 91.39 91.67 Loans and leases, net 53.80 52.81 52.82 53.88 54.83 54.73 54.05 53.08 53.02 Commercial and industrial 14.33 13.68 12.84 12.34 12.10 11.53 10.59 9.73 9.24 U.S. addressees 14.29 13.66 12.81 12.32 12.07 11.50 10.55 9.68 9.20 Foreign addressees .03 .03 .03 .02 .03 .04 .04 .04 .04 Consumer 13.01 12.40 11.74 11.48 11.46 11.19 10.48 9.80 9.33 Credit card .61 .68 .80 .86 .93 .99 1.07 1.13 1.09 Installment and other 12.39 11.72 10.94 10.62 10.53 10.20 9.41 8.67 8.24 Real estate 20.83 21.94 24.07 26.03 27.35 28.35 29.31 30.11 31.03 In domestic offices 20.82 21.94 24.07 26.02 27.35 28.35 29.31 30.11 31.03 Construction and land development ... 2.16 2.21 2.19 2.22 2.29 2.38 2.18 1.97 1.93 Farmland 1.32 1.42 1.59 1.74 1.82 1.86 1.93 2.06 2.19 One- to four-family residential 11.23 11.62 12.79 14.06 14.80 15.37 15.99 16.41 16.79 Home equity n.a. n.a. n.a. .73 .95 1.16 1.29 1.33 1.27 Other n.a. n.a. n.a. 13.32 13.86 14.21 14.70 15.08 15.52 Multifamily residential .50 .54 .60 .61 .62 .66 .71 .77 .84 Nonfarm nonresidential 5.62 6.15 6.90 7.40 7.82 8.09 8.49 8.89 9.28 In foreign offices • * • * • * * * * Depository institutions .27 .25 .30 .31 .26 .23 .20 .13 .12 Foreign governments .01 .01 .01 .02 .01 .01 .01 .01 .02 Agricultural production 4.52 3.76 3.30 3.25 3.27 3.29 3.47 3.54 3.57 Other loans 2.40 2.20 1.90 1.75 1.67 1.41 1.24 .99 .86 Unearned income on loans1 1.07 .83 .67 .61 .60 .58 .51 .43 .36 Lease-financing receivables .19 .19 .19 .19 .19 .18 .18 .17 .18 Loss reserves2 .69 .78 .85 .88 .88 .89 .93 .97 .97 Securities 27.55 26.96 27.67 27.98 27.91 28.37 29.97 32.06 33.02 Investment account 27.51 26.91 27.59 27.92 27.83 28.28 29.91 32.00 32.95 Debt 27.51 26.91 27.59 27.92 27.44 27.92 29.54 31.56 32.50 U.S. Treasury 12.63 11.40 10.64 9.75 8.83 8.77 9.24 10.24 10.47 U.S. government agency and corporation obligations 6.17 6.44 8.18 9.80 11.37 12.43 13.81 15.01 15.77 Mortgage pass-through securities ... 1.55 1.38 2.66 3.22 3.76 4.58 5.59 5.51 5.38 Collateralized mortgage obligations n.a. n.a. n.a. n.a. n.a. .92 1.55 2.66 3.32 Other 4.62 5.07 5.52 6.58 7.61 6.94 6.66 6.84 7.06 State and local government 8.02 8.01 6.64 5.65 4.94 4.56 4.26 4.28 4.69 Tax-exempt n.a. n.a. 6.48 5.45 4.72 4.33 4.03 4.02 4.37 Taxable n.a. n.a. .17 .20 .22 .23 .23 .27 .32 Other .69 1.06 2.13 2.73 2.30 2.16 2.23 2.03 1.58 Equity3 n.a. n.a. n.a. n.a. .40 .36 .38 .44 .45 Trading account .04 .05 .08 .05 .07 .10 .06 .06 .07 Gross federal funds sold and reverse RPs 5.61 7.09 6.66 5.76 5.74 6.13 5.64 5.09 4.66 Interest-bearing balances at depositories 2.90 3.13 3.36 3.19 2.40 1.81 1.57 1.16 .97 Non-interest-earning assets 10.13 10.00 9.50 9.19 9.12 8.95 8.77 8.61 8.33 Liabilities 91.72 91.80 91.74 91.61 91.42 91.37 91.36 91.07 90.62 Interest-bearing liabilities 74.90 75.60 76.39 76.94 77.11 77.80 78.39 77.84 76.90 Deposits 72.73 73.64 74.38 74.83 74.97 75.78 76.40 75.70 74.46 In foreign offices .07 .06 .04 .04 .06 .07 .08 .07 .09 In domestic offices 72.66 73.59 74.34 74.80 74.90 75.71 76.32 75.63 74.37 Other checkable deposits 8.10 9.02 10.33 10.63 10.38 10.45 10.98 12.31 13.14 Savings (including MMDAs) 21.06 22.19 23.29 21.92 19.51 18.73 19.35 22.07 23.51 Small denomination time deposits 31.98 30.89 29.56 30.97 33.64 35.36 35.85 32.80 30.05 Large denomination time deposits 11.52 11.49 11.16 11.27 11.37 11.17 10.15 8.45 7.68 Gross federal funds purchased and RPs 1.48 1.29 1.27 1.35 1.35 1.36 1.31 1.40 1.48 Other .70 .66 .73 .76 .79 .67 .67 .74 .97 Non-interest-bearing liabilities 16.82 16.20 15.35 14.67 14.31 13.57 12.97 13.23 13.73 Demand deposits in domestic offices 15.24 14.88 14.24 13.58 13.09 12.36 11.83 12.21 12.79 Other 1.57 1.32 1.11 1.09 1.22 1.21 1.15 1.02 .93 Capital account 8.28 8.20 8.26 8.39 8.58 8.63 8.64 8.93 9.38 MEMO Commercial real estate loans n.a. n.a. n.a. n.a. n.a. n.a. 11.05 11.06 11.35 Other real estate owned .44 .55 .63 .65 .65 .62 .67 .65 .52 Managed liabilities 13.70 13.44 13.14 13.35 13.53 13.23 12.17 10.63 10.19 Average net consolidated assets (billions of dollars) 620 649 659 654 662 681 695 698 689 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 1993 507 A.2.—Continued E. Banks not ranked among the 1,000 largest, by assets Item 1985 1986 1987 1988 1989 1990 1991 1992 1993 Effective interest rate (percent)4 Rates earned Interest-earning assets 11.34 10.25 9.53 9.76 10.50 10.31 9.64 8.47 7.68 Taxable equivalent 11.85 10.75 9.86 10.00 10.72 10.50 9.82 8.64 7.85 Loans and leases, gross 12.60 11.59 10.84 11.01 11.74 11.56 11.00 9.89 9.22 Net of loss provisions 11.09 9.92 9.59 9.98 10.85 10.61 10.07 9.09 8.74 Securities 9.68 8.75 7.93 7.96 8.41 8.47 8.08 7.00 5.95 Taxable equivalent 11.27 10.32 8.96 8.66 9.03 9.02 8.56 7.43 6.36 Investment account 9.68 8.74 7.91 7.93 8.39 8.45 8.08 7.00 5.95 U.S. government and other debt 10.56 9.27 8.03 8.02 8.57 8.64 8.24 7.07 5.93 State and local 7.52 7.50 7.51 7.58 7.59 7.48 7.20 6.72 6.12 Equity3 n.a. n.a. n.a. n.a. 7.96 8.03 6.99 5.46 5.10 Trading account 9.03 8.88 9.38 15.11 14.35 12.79 8.79 7.03 4.46 Gross federal funds sold and reverse RPs .. 8.26 6.90 6.81 7.67 9.24 8.10 5.65 3.50 2.94 Interest-bearing balances at depositories 9.64 8.05 7.37 8.06 9.10 8.54 7.35 5.58 4.53 Rates paid Interest-bearing liabilities 8.08 6.98 6.18 6.40 7.15 7.00 6.17 4.45 3.56 Interest-bearing deposits 8.06 6.94 6.12 6.35 7.09 6.96 6.15 4.44 3.53 In foreign offices 8.34 7.06 7.29 7.62 9.35 7.57 5.95 3.97 2.91 In domestic offices 8.06 6.94 6.12 6.35 7.09 6.96 6.15 4.44 3.53 Other checkable deposits n.a. n.a. 4.93 4.99 5.08 5.02 4.61 3.13 2.42 Savings (including MMDAs) n.a. n.a. 5.37 5.47 5.81 5.73 5.17 3.61 2.91 Large denomination CDs 8.69 7.35 6.55 7.11 8.35 7.90 6.73 5.03 4.05 Other time deposits n.a. n.a. 6.96 7.16 8.02 7.87 6.97 5.34 4.38 Gross federal funds purchased and RPs 7.78 6.58 6.25 6.79 8.51 7.71 5.71 3.97 3.34 Income and expenses as a percentage of average net consolidated assets Gross interest income 10.29 9.29 8.71 8.94 9.64 9.49 8.90 7.83 7.11 Taxable equivalent 10.75 9.74 9.01 9.17 9.84 9.67 9.07 7.98 7.26 Loans 6.86 6.19 5.80 6.00 6.52 6.42 6.04 5.34 4.97 Securities 2.65 2.35 2.18 2.21 2.32 2.38 2.40 2.24 1.95 Gross federal funds sold and reverse RPs .. .50 .50 .47 .46 .57 .53 .34 .18 .14 Other .28 .25 .25 .26 .23 .17 .12 .07 .05 Gross interest expense 6.04 5.25 4.71 4.91 5.49 5.43 4.82 3.46 2.73 Deposits 5.87 5.11 4.57 4.75 5.32 5.27 4.70 3.36 2.63 Gross federal funds purchased and RPs .12 .09 .08 .10 .12 .10 .07 .06 .05 Other .06 .05 .05 .06 .06 .05 .04 .04 .05 Net interest margin 4.25 4.03 4.00 4.03 4.15 4.06 4.08 4.37 4.38 Taxable equivalent 4.71 4.49 4.30 4.26 4.35 4.24 4.25 4.52 4.53 Loss provisions3 .82 .89 .67 .56 .49 .52 .51 .43 .26 Noninterest income .84 .85 .88 .92 1.00 1.00 1.07 1.22 1.34 Service charges on deposits .42 .42 .41 .41 .41 .42 .44 .45 .45 Fiduciary activities .10 .10 .11 .12 .14 .14 .14 .16 .16 Foreign-exchange gains and fees * • * * * * * * » Trading income * * * * .01 .01 • * • Other .30 .33 .35 .39 .44 .43 .49 .61 .73 Noninterest expense 3.43 3.45 3.42 3.44 3.48 3.48 3.60 3.70 3.78 Salaries and employee benefits 1.66 1.63 1.61 1.62 1.65 1.63 1.64 1.69 1.73 Premises and fixed assets .53 .53 .52 .51 .50 .49 .49 .49 .48 Other 1.24 1.29 1.30 1.31 1.33 1.35 1.46 1.52 1.56 Net noninterest margin -2.60 -2.60 -2.55 -2.51 -2.48 -2.48 -2.52 -2.49 -2.43 Gains on investment account securities .08 .15 .03 .01 .01 * .06 .09 .07 Income before taxes .91 .69 .82 .97 1.18 1.05 1.11 1.54 1.75 Taxes .20 .15 .25 .29 .37 .33 .35 .48 .54 Extraordinary items .01 .02 .02 .02 .02 .02 .01 .02 .05 Net income .72 .56 .59 .69 .83 .74 .77 1.07 1.25 Cash dividends declared .43 .40 .40 .46 .52 .49 .47 .52 .57 Retained income .30 .16 .19 .22 .30 .24 .30 .55 .69 MEMO: Return on equity 8.70 6.82 7.10 8.21 9.64 8.54 8.97 11.96 13.37 NOTE. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. * In absolute value, less than 0.005 percent. 1. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 2. Includes allocated transfer risk reserve. Subtracted from the sum of loans and leases in the calculation of net loans and leases. 3. As in the Call Report, equity securities are combined with "other debt securities" before 1989. 4. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report. 5. Includes provision for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 Industrial Production and Capacity Utilization for April 1994 Released for publication May 16 cles, where a decrease in assemblies reduced the overall gain in industrial output by more than Industrial production rose 0.3 percent in April after 0.1 percentage point. The seasonally adjusted outgains of 0.5 percent in each of the three preceding put of motor vehicles declined because manufacturmonths. Increases in production were widespread ers had pushed output to near capacity in February among industries; one exception was motor vehi- and were unable to achieve the further gains in the Industrial production indexes Twelve-month percent change Twelve-month percent change Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 Total industry 90 80 70 All series are seasonally adjusted. Latest series, April. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

509 Industrial production and capacity utilization, April 19941 Industrial production, index, 1987 = 100 Percentage change CCaatteeggoorryy 11999944 19942 AApprr.. 11999933 ttoo Jan.r Feb.r Mar.r Apr.P Jan.r Feb/ Mar.r Apr.P AApprr.. 11999944 Total 114.6 115.1 115.7 116.0 .5 .5 .5 .3 5.0 Previous estimate 114.4 115.0 115.6 .4 .6 .5 Major market groups Products, total3 113.6 114.3 114.7 115.0 .6 .6 .3 .3 4.7 Consumer goods 110.9 111.9 112.1 112.0 .7 .9 .1 -.1 3.1 Business equipment 142.9 145.1 146.0 146.7 .8 1.6 .6 .5 10.3 Construction supplies 100.5 98.9 100.2 100.9 -.8 -1.6 1.3 .7 6.4 Materials 116.0 116.2 117.2 117.4 .5 .2 .8 .2 5.4 Major industry groups Manufacturing 115.6 116.2 117.1 117.5 .1 .6 .8 .3 5.6 Durable 120.4 121.2 122.0 122.5 .3 .7 .6 .4 7.9 Nondurable 109.6 110.1 111.1 111.5 -.1 .5 .9 .3 2.5 Mining 97.0 98.7 99.3 99.4 .1 1.8 .6 .1 2.0 Utilities 121.9 119.6 116.8 116.1 5.3 -1.9 -2.3 -.6 1.4 Capacity utilization, percent MEMO Capacity, cceennttaaggee 1993 1994 cchhaannggee,, Average, Low, High, AApprr.. 11999933 1967-93 1982 1988-89 Apr. Jan.' Feb.r Mar.r Apr.P ttoo AApprr.. 11999944 Total 81.9 71.8 84.8 81.4 83.2 83.4 83.6 83.6 2.2 Manufacturing 81.2 70.0 85.1 80.6 82.2 82.5 82.9 83.0 2.5 Advanced processing 80.6 71.4 83.3 79.3 80.7 81.3 81.6 81.6 3.1 Primary processing 82.2 66.8 89.1 83.6 85.9 85.3 85.9 86.3 1.2 Mining 87.4 80.6 87.0 87.4 87.6 89.2 89.8 89.9 -.8 Utilities 86.7 76.2 92.6 85.8 90.6 88.8 86.6 86.0 1.1 1. Data seasonally adjusted or calculated from seasonally adjusted 3. Contains components in addition to those shown, monthly data. r Revised, 2. Change from preceding month. p Preliminary. pace of average daily production normally ex- ment advanced 1.2 percent, extending the strength pected for March and April. At 116.0 percent of its that has led to an 18 percent increase during the 1987 average, industrial production was 5.0 per- past twelve months. The production of industrial cent higher in April than it was a year earlier. The equipment picked up 0.3 percent in April, and the utilization of total industrial capacity held steady, output of other equipment (farm equipment, office at 83.6 percent. furniture, and service industry equipment) rose When analyzed by market group, the data show 1.1 percent. that the production of consumer goods edged down The production of construction supplies because the decline in the output of automotive increased 0.7 percent, continuing its recovery from products more than offset small gains in the pro- the weather-related losses of January and February. duction of other consumer goods. An increase in The output of business supplies also rose 0.7 perappliance manufacturing pushed up the output in cent, with gains broadly based. The output of the other consumer durables category; gains in the industrial materials edged up 0.2 percent; another output of fuels and clothing helped boost nondura- increase in the production of durable goods materibles despite a decrease in the output of food. als more than offset small losses in the output of The production of business equipment continued nondurable goods and energy materials. Continued to post gains, with the weakness in transit equip- increases in the manufacture of semiconductors ment more than offset by increases in other catego- and computer parts accounted for most of the gain in the durables category. The output of durable ries. The output of information processing equip- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 Federal Reserve Bulletin • June 1994 goods materials has risen 8.9 percent during the the output of food fell back 0.7 percent after having past twelve months, with the strongest increases at increased 1.7 percent in March. Since April 1993, industries that supply materials used in motor vehi- the production of nondurable manufactured goods cle and computer assembly. has risen 2.5 percent, with gains in all industries When analyzed by industry group, the data show except tobacco and leather products. that manufacturing output increased 0.3 percent, In April, factory capacity utilization edged up with similar gains in both durable and nondurable 0.1 percentage point, to 83.0 percent; the increases goods. Within durables, the output of both indus- were concentrated among primary-processing trial equipment and electrical machinery advanced industries, at which utilization rose to 86.3 perabout IV2 percent. The output of primary metals cent, about 4 percentage points above its 1967-93 also grew more than 1 percent. Although the output average. of motor vehicles and parts fell, it is still 15 percent The output from mines changed little. Coal minabove its year-ago level. This performance, along ing, which had advanced about 15 percent between with the strength in the machinery industries, con- January and March, held steady. The output from tributed importantly to the increase of 8 percent in utilities, which had surged in January with the overall production at manufacturers of durable abnormally cold weather, had retraced most of that goods since last April. Among nondurables produc- increase by March and decreased only 0.6 percent ers, the gains were widespread in April, with the in April. • largest increase at petroleum refineries. However, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

511 Statements to the Congress Statement by John P. LaWare, Member, Board A hedge fund might not exhibit all these charof Governors of the Federal Reserve System, acteristics all the time, and other financial instibefore the Committee on Banking, Finance and tutions also exhibit many of these characteris- Urban Affairs, U.S. House of Representatives, tics. Indeed, it is important to recognize that the April 13, 1994 activities of hedge funds are not fundamentally different from those of many other institutions. I appreciate the opportunity to appear before you Banks often distinguish between two categoand present the views of the Federal Reserve ries of hedge funds. The first category consists of Board on several topics related to hedge funds. those organized by one or more individuals with These topics fall into three main categories, particular trading philosophies such as Soros which correspond to the major points raised by Fund Management, Tiger Management Corporathe questions contained in your letter of invita- tion, and Steinhardt Management Company. The tion. First, what do we know about hedge funds second category consists of funds that are adand their activities? Second, what are the risks to vised by the proprietary trading desks of investbanks that have exposures to these funds? Third, ment banks or internationally active commercial do the particular activities of hedge funds pose banks and bear a name linked to the advising special risks for the markets in which they oper- entity. ate and the financial system more broadly? So that managers of hedge funds can be free to use various trading strategies, and free to change those strategies quickly, the funds are structured DEFINITION AND CHARACTERISTICS to avoid the regulatory limitations on permissible OF HEDGE FUNDS assets, leverage, and concentration of assets that apply to other managed funds that are offered to The Federal Reserve does not regulate hedge the public. Hedge funds achieve their essential funds and does not have comprehensive informa- flexibility either by organizing offshore or by tion on their size or activities. Moreover, there is using the benefits of limited partnerships. For no formal definition of "hedge fund" that is example, hedge funds may avoid registration as universally accepted. Banks and other financial an investment company under the Investment institutions that deal with or monitor these enti- Company Act of 1940 by restricting participation ties have developed their own specific working to fewer than 100 persons. In enacting the Investdefinitions of the term. The definitions used by ment Company Act, the Congress believed that banks generally mention several elements in these companies did not involve significant pubcharacterizing so-called hedge funds: lic policy issues and were not properly subject to • an investment partnership or mutual fund federal regulation. The number of investors in that is unregulated; hedge funds is also limited by their high minimum • one that seeks high rates of return by invest- investments, typically from $250,000 to $1 miling or trading in virtually any form of financial lion or more. Participation in some funds is instrument; further restricted to professional traders or per- • an entity that may take long and short posi- sons with specialized knowledge of particular tions and invest in many markets; markets, regardless of their wealth. • an entity that uses leverage; There are currently hundreds of hedge funds. • an entity whose manager's compensation is One market consultant specializing in hedge based on its financial performance. funds identified at least 800 hedge funds, up from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 Federal Reserve Bulletin • June 1994 about 100 in 1987, and others cite far higher lines, repurchase lines for U.S. and foreign govnumbers.1 Other privately published directories ernment bonds, other collateralized credit lines, of hedge funds indicate the Soros group of funds custodial services, and, in limited amounts, unalone has about $9 billion of capital and the Tiger secured direct credit lines. In some cases, banks group has $6.5 billion of capital (net asset value). also organize and advise overseas funds that A few fund families, therefore, have capital com- would meet the general definition of a hedge parable to or exceeding that of some large U.S. fund. commercial and investment banks. It should be No comprehensive data are routinely collected noted, however, that although funds under the on banks' activities with hedge funds. Moreover, same management may share similar trading any such data would need to be viewed skeptistrategies, they are separate entities operating on cally because of differing definitions of hedge their own capital. According to published re- funds and because of problems inherent in any ports, perhaps a dozen hedge funds have net attempt to aggregate the various risks and potenasset value greater than $1 billion, and perhaps tial risks that might be involved in the range of another twenty-five have capital between $100 products offered by banks to hedge funds. Howmillion and $1 billion. The vast majority of hedge ever, the Federal Reserve has reviewed the mafunds that make up the 800 cited above, how- jor banking activities of organizations with hedge ever, are quite small. funds through the regular examination process, Hedge funds constitute only one of several supplemental examination projects, discussions categories of institutional investors that partici- with banks, and contacts with other bank regupate in financial markets. Even the largest hedge latory authorities. funds are small relative to the broader markets in We have found that bank relationships with which they operate. For example, turnover in the hedge funds are concentrated in traditional bank global foreign exchange market is estimated at products, especially foreign exchange services. more than $1 trillion a day. The capital available One of the major developments in markets in the to hedge funds, is dwarfed by that of more past few years has been the globalization of traditional mutual funds. The total net asset institutional investment. As a result, institutional value of the regulated mutual fund industry was investors—mutual funds and pension funds, $2.1 trillion at the end of 1993, about equally along with hedge funds—have been increasingly divided among equity, bond, and money market important users of foreign exchange services. funds.2 Currently at least ten mutual funds have These foreign exchange lines afforded by banks a net asset value greater than $9 billion, and the may be used to take outright foreign currency largest has $32 billion of net assets.3 Other insti- positions or to hedge positions that have arisen tutional investors (for example, banks serving as from other activities, such as the purchase of trustees, pension plans, and insurance compa- foreign government bonds or foreign equities. nies) had, as of the end of 1993, $6.5 trillion in Banks have been the traditional major suppliassets under management. ers of foreign exchange services, and major U.S. banks, in particular, are generally viewed as among the most efficient global providers of RELATIONSHIPS WITH BANKS these services. Thus, it is not surprising that major U.S. banks are significant providers of Hedge funds, like other users of financial ser- foreign exchange facilities to hedge funds as well vices, use the banking industry for some activi- as to other institutional investors. Similarly, ties. U.S. banks provide several services to banks provide hedge funds with other services in hedge funds, such as foreign exchange trading which they are competitive, such as repurchase facilities on government debt and swap products. As with other customers, banks enter into 1. E. Lee Hennessee, "Flowering Hedges," Barron's, these relationships because they view them as (December 13, 1993). profitable and believe that the risks can be ade- 2. Investment Company Institute, Washington, D.C. 3. Morningstar Mutual Funds (February 18, 1994). quately controlled. In addition, some banks be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 513 lieve that their own marketmaking and position- ital market products often appears quite large, ing activities are enhanced by dealing with all the bank's risk (with the exception of settlement major market participants because this gives risk, which either usually does not occur with them additional information about the state of the hedge funds or can be eliminated by delivery market. It should be noted, however, that infor- against payment) is confined to the changes in mation on hedge fund transactions is only one value in the financial instrument that result from piece of a vast array of information that flows market movements, which is a fraction of the through the marketmaking desks of the major nominal amount of the contracts. A bank would banks. generally hedge the market risk it assumes when Also, the size of the banks' business with it sells foreign exchange or similar products to a hedge funds should not be exaggerated. Although hedge fund. However, if the contract moves in estimates of the relative importance of hedge favor of the bank, the hedge fund would owe the fund business to banks are not hard numbers, bank money at maturity, resulting in a credit risk data obtained from two of the most active banks to the bank. Collateral is often used to guard indicate that all of their hedge fund customers (as against this type of credit risk. Banks closely defined by the banks) together account for well monitor the level of collateral against their expounder 10 percent of their total net trading reve- sures, in many cases twenty-four hours a day, to nue. For most banks that deal with hedge funds, make certain that adequate collateral is mainthe share of their revenue derived from this tained at all times. Banks maintain the right to source appears to be considerably less. close out contracts if margin calls cannot be met Generally, a fund that wishes to purchase or and often for other reasons as well. sell foreign exchange or other capital markets For more established hedge fund customers, products with a bank on a regular basis will most banks use a variation of this procedure. approach the bank to establish a trading facility. Funds are advised that a certain amount of The bank will assess the fund to determine if it business will be permitted without collateral. will allow the bank's traders to execute trades This is termed a "loss threshold." Once various with that fund; if trading is permitted, it will set pre-established limits are exceeded, these custhe total amount in which it will permit the tomers are expected to either post collateral or traders to deal and establish appropriate collat- settle their outstanding position with the bank in eralization arrangements to mitigate actual or cash. For these "loss threshold" customers, potential credit risk. Elements of that assessment banks can incur outright unsecured credit exponormally include a review of partnership docu- sure up to the amount of the loss threshold. ments, offering circulars, fund performance his- Three major state member banks were retory, an analysis of the fund's financial state- viewed as part of a special examination project; ments, and, in many cases, an on-site review of even if all funds viewed by each bank as hedge the fund's risk management practices and capa- funds were aggregated, the total loss threshold bilities. amounts would not exceed 2 percent of equity Two types of facilities are normally extended capital at any of the three banking organizations. to qualifying hedge funds. One type of facility Actual mark-to-market exposures to these cusmust be collateralized at all times. For example, tomers less collateral were even smaller; in the a bank might notify a hedge fund customer that it majority of cases, on the dates surveyed, most was prepared to deal in foreign exchange up to a funds (including many loss threshold customers) nominal open position of $50 million, provided actually held collateral with these banks in exthat collateral was maintained at 5 percent of the cess of the amounts owed to the bank. Our more nominal foreign exchange open position plus an limited examination surveys of holding compaamount equal to any move in the actual mark-to- nies for national banks, along with information market value of the contract that was in the provided by the Office of the Comptroller of the bank's favor. Currency, indicate this situation also exists with Although the nominal amount of foreign ex- respect to the major national banks and their change lines, repurchase facilities, or other cap- holding company affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 Federal Reserve Bulletin • June 1994 A risk with respect to these customers, as well ence in this area, however, is quite limited, and as with the fully margined customers, is that the risk management procedures are still evolving trades the hedge funds have with the bank could rapidly. Although these characteristics of rapidly move further in favor of the bank, requiring growing new business areas are not unusual, it is additional margin calls. If margin calls could not incumbent on banks to increase personnel with be met, the bank would have to close out the expertise in dealing with hedge funds, strengthen position and realize the collateral, possibly at a internal controls, and improve senior managelower value than expected, thereby causing a ment review capability. We also believe that the credit loss to the bank. Risks of this type are potential for concentrations of exposure need to generally referred to as "potential credit expo- be evaluated by banks and, in doing so that banks sures." need to consider carefully the assumptions that Banks attempt to derive conservative "worst- are used in defining aggregate hedge fund expocase" estimates of this potential exposure. In sure. In particular, we question the practice of dealing with funds, banks set limits that directly some banking organizations of viewing hedge or indirectly limit potential credit exposure. In- funds managed by major financial institutions dividual banks assess potential exposure differ- differently from other hedge funds, apparently, at ently, making different assumptions, often about least in part, on the assumption of implied finanevents that are highly unlikely to occur. Even cial support from the sponsoring institution. under very broad measures of potential expo- We do not believe, however, that this is an sure, however, examiners have not found any area in which increased disclosure and regulatory bank's exposure to a fund or fund group that reporting by banks is warranted. Actual expowould approach the 15 percent of capital a bank sures currently appear in only a few banks and is permitted to loan to a single borrower. More- are not substantial. There are already general over, examiners and bank supervisory personnel rules on public disclosure of concentrations of who have looked in detail at these exposures exposures, and the Federal Reserve believes that have informed me that they do not regard hedge additional reporting burdens should not be roufund exposures at banks, even in the aggregate, tinely imposed to address the perceived problem as at this time posing a significant risk to the of the moment. Moreover, as mentioned, most of safety and soundness of major banks or the the risks are associated with estimates of possibanking system. ble future exposure, which do not easily lend Nonetheless, banks' business with hedge themselves to standardized reporting. The focus funds has grown significantly over the past should be on proper risk management procedures couple of years and may expand further. Like in banks, an issue that can be addressed most any other growth area in banks, management efficiently through the examination and supervimust make certain that adequate controls on sion process. risk accompany growth and that undue risk concentrations do not arise. A special examination project focusing on hedge funds, which the HEDGE FUNDS, MARKET VOLATILITY, Federal Reserve Bank of New York has been AND SYSTEMIC RISK conducting over the past few months, has identified some issues relating to banks' manage- The risk that hedge funds might pose to banks ment of their relationships with hedge funds directly is one of the concerns sometimes voiced that we are addressing through the ongoing about hedge funds. The possibility that the besupervisory process. havior of hedge funds adds to volatility in finan- Our review indicates that banks that deal with cial markets is another. hedge funds spend considerable effort in analyz- Bond markets around the world have experiing and controlling the risks involved in these enced an increase in volatility in the past couple relationships and employ personnel with the ex- of months, with volatility in some European pertise required to carry out these responsibili- markets reaching record or near-record levels. ties. The actual number of people with experi- Although day-to-day volatility in the U.S. gov- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 515 ernment bond market (measured by the standard firms—it seems clear that the rumors of widedeviation of daily changes in yield in the cash spread margin calls by lenders to hedge funds market or by implied volatility in the options were exaggerated. The grain of truth in these market) has risen in recent weeks, it has by no reports involved margin guidelines internal to means been extraordinarily high. What has been the hedge funds. As the value of their bond extraordinary has been the extent of the net asset positions declined, reducing their capital movement in U.S. bond yields over the past two cushions, several large hedge funds sold bonds months or so. Indeed, yields on the ten-year and to reduce their degree of leverage. Frankly, this thirty-year bonds rose 150 and 120 basis points seems to me to be normal, prudent behavior. respectively between January 28 and April 4. Press reports of hedge fund selling in the U.S. Recent press reports have attributed at least Treasury market likely have been exaggerated. part of the recent increase in global bond mar- Many other types of institutions were trying ket volatility and the increases in rates to the to reduce positions as well. Bond mutual funds, activities of hedge funds and have alleged var- for example, are reported to have experienced iously that these funds were all moving the significant net redemptions beginning in late same way at the same time; that the loss in February as shareholders reacted to declines in value of their bond holdings was leading to net asset values when rates backed up. Much margin calls that forced further liquidation of fuel for the strong bond market rally over the bond positions; that losses in some markets previous few years had come from huge incaused liquidations in other markets; and that flows, approximately $340 billion, into bond mounting losses and increasing market volatil- mutual funds in 1991-93. In recent years, some ity led, through internal risk management pro- inflows to both stock and bond mutual funds cedures, to further reductions in exposures and, were driven not only by the persistence of high hence, further pressure on prices. rates of return relative to certificates of deposit, We do not have the necessary data to rigor- resulting in part from capital gains on bonds and ously test each of these propositions. We do stocks, but also by a deceptive stability, quarknow that not all hedge funds behave the same ter-to-quarter, of such returns. This pattern way. Some tend to specialize in certain markets probably imparted a false sense of low risk to or instruments, whereas others operate in a wide these instruments. variety of markets looking for the best invest- It was inevitable that a break in that pattern ment opportunities at a given time. Some tend to would occur. Over time, high returns are assohave longer time horizons and rely on fundamen- ciated with high risk. At least some price adtal analysis, while others have very short term justment in bond and stock markets can be trading strategies and may place more emphasis viewed as an unavoidable correction to an on market dynamics. The degree of leverage is unsustainable situation. It may be useful in the variable, both across funds and within each fund very short run to look at who was selling and over time, depending upon the risk-reward pro- who was buying and the role of technical asfile of a particular position and of the entire pects of market dynamics related to investment portfolio. With these differences, it is not surpris- strategies, degree of leverage, and risk manageing that investment performance varies widely ment techniques; but this approach is seldom over a given time period. In the first two months the basis for a satisfactory analysis of price of this year, for example, according to data movements over a longer time horizon. For that voluntarily supplied to a private data collection analysis, we have to look at changes in ecofirm by ninety-four hedge funds, returns varied nomic fundamentals, including the underlying from 20 percent to -17 percent, with more than parameters of the economy and economic poli- 40 percent of the funds reporting negative re- cies. Indeed, it is here we would focus in turns. Evidently all hedge funds did not have the attempting to explain the sharp backup in global same positions or behavior over this period. bond yields over the past couple of months. From our conversations with market par- There have been very important changes in ticipants—hedge funds, banks, and securities market participants' perceptions of economic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 Federal Reserve Bulletin • June 1994 fundamentals, both in the United States and staff—bank examiners and others—have been abroad, and these changes in perceptions have talking extensively to banks over the past year or caused all types of institutions and individuals so about their risk management procedures. The to desire to reduce their bond holdings. Much Federal Reserve is not alone in trying to address stronger recent and prospective economic these concerns. Central banks of the major ingrowth in the United States has caused market dustrial nations frequently discuss together isparticipants to sharply raise their expected path sues of concern with regard to systemic risk. The of interest rates, and the Federal Reserve took G-10 governors, for example, in early March steps in its reserve management that had the evaluated the recent price weakness in bond effect of raising short-term interest rates some- markets and the role of highly leveraged funds what. and derivative instruments in such price changes. In some other nations, as well, changes in the German Bundesbank president Tietmeyer, chairoutlook for economic activity and for monetary man of the G-10 governors, indicated that the and fiscal policies led to some backup in interest governors viewed recent bond market developrates. Finally, many market commentators have ments to some extent as a reflection of previous cited the possibility of a significant increase in overshooting and indicated that they did not see risk premia in long-term bond rates related to the the need for new regulations on derivatives and U.S.-Japan trade policy dispute and to increased hedging techniques. political uncertainties in several nations. In conclusion, let me reiterate that, because Although we would not deny some influence of hedge funds are large and are willing to take so-called positive feedback market dynamics in large positions, they can have important effects contributing to the recent backup in global bond on financial markets. But they are certainly not rates, we feel the fundamental factors account unique in that regard—other types of firms are for the bulk of the movement. At the same time, even larger and may have more important efwe do not rule out the possibility that swings in fects. Moreover, like the activities of other market optimism and pessimism may have re- firms who have been successful over a long sulted in some overshooting of bond prices, both period and whose management, by and large, is the rise last year and the decline this year. responsible, the activities of hedge funds add Although some activities involved with deriva- depth and liquidity to financial markets and can tive instruments, for example, dynamic hedging be stabilizing influences. It would be wrong to of options portfolios, including the options em- single out hedge funds as being responsible for bedded in fixed rate mortgages and mortgage- moving global prices of financial assets or as backed securities, may have tended to exagger- being a major source of risk in financial marate price movements, other elements involving kets. Nevertheless, banks and other counterderivatives, such as the availability of highly parties to hedge funds need to carefully monitor liquid futures markets on organized exchanges, their relationships with hedge funds, just as probably smoothed price developments in the they should monitor their other business relacash market for bonds. tionships. Financial firms should continue to Whatever the explanation, financial asset val- place the highest priority on reviewing, assessues have declined significantly. Actual and po- ing, and improving their overall risk managetential changes in asset prices obviously are an ment practices. The Federal Reserve intends to element of risk facing financial firms. The inter- continue to use its bank supervisory authority play of this risk—so-called market risk—and the to make certain that further progress is made in counterparty credit risk, which I discussed ear- this area and that risks are being adequately lier, can lead to systemic problems. Risks that controlled. At the same time, the Federal Remay seem quite reasonable in normal circum- serve will continue to work with other U.S. stances may become more problematic if the agencies and with foreign central banks to monfinancial positions of borrowers erode as a result itor important developments in financial marof market moves. kets and to ensure that it is in a position to react promptly to any problems that might arise. • It is for this reason that Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 517 Statement by John P. LaWare, Member, Board activities that are directly conducted by banks of Governors of the Federal Reserve System, are subject to policies and procedures designed before the Subcommittee on Telecommunica- to address concerns relating to the conduct of tions and Finance of the Committee on Energy these activities, including requirements that govand Commerce, U.S. House of Representatives, ern adequate disclosures to bank customers and April 14, 1994 appropriate training and sales practices. Moreover, these activities are, and traditionally have I am pleased to appear on behalf of the Federal been, reviewed by the bank regulators in the Reserve Board before the Subcommittee on course of regular, on-site examinations of these Telecommunications and Finance to discuss the institutions. Board's views of H.R.3447, "The Securities Regulatory Equality Act," and to comment generally on what is termed functional regulation. CURRENT REGULATORY STRUCTURE As banks have been expanding the level of securities services they make available to their Generally, the activities of banks, including customers, attention is being focused again on those securities activities that are conducted in the express exemptions the Congress has pro- the bank, are regulated under the banking laws vided for banks from the framework in the secu- by the banking regulators, and securities firms rities laws that govern nonbank securities firms. are regulated under the securities laws by the In 1991, the Board testified in support of a Securities and Exchange Commission (SEC) and Treasury Department legislative proposal that self-regulatory organizations (SROs). SROs are would have repealed the Glass-Steagall Act re- formed by industry members who adopt rules strictions on the securities activities of banking and have inspection and enforcement authority organizations and, as an integral part of that for those rules, subject to SEC oversight of their reform, modified the blanket exemptions for activities. banks from broker-dealer regulation. The Board There is, of course, some crossover in regulasupported modification of the bank exemptions tory authority; the SEC oversees subsidiaries of at that time because that legislative proposal banks and bank holding companies that are regwould have lifted the existing restrictions on the istered broker-dealers or investment advisers. scope of securities activities permitted to bank- However, the bank regulators also have jurisdicing organizations and would have allowed banks tion over these entities and have broad authority to continue to provide directly to their customers to regulate and examine these companies, includcertain banking services that banks have offered ing authority to determine the scope of their safely and soundly for many years. We continue activities, limit transactions between these entito believe that modification of the bank exemp- ties and bank affiliates, establish capital stantions is most appropriately considered as part of dards for these entities, and enforce compliance a comprehensive approach that permits banking by these entities with all applicable laws. organizations to engage in the full range of secu- This regulatory arrangement reflects both hisrities activities that nonbank firms may conduct tory and accommodation to a changing marketand that provides appropriate exceptions so as place. Securities activities have traditionally not to curtail unnecessarily certain traditional been viewed as part of the business of banking, bank securities activities. and banks have been conducting securities activ- We are not convinced that a compelling case ities for customers since before enactment of the has been made at this time for legislative action federal securities laws. The Securities Exchange that does not thoroughly address the basic frame- Act, adopted in 1934, specifically exempted work that governs the securities activities of banks from the definitions of broker and dealer, banks. Only a relative handful of banks currently thereby exempting brokerage and dealing activprovide brokerage services without the participa- ity conducted within a bank from regulation tion of a broker-dealer that is subject to regula- under that act. In addition, banks providing tion under the securities laws. The securities advice within the bank are exempt from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 Federal Reserve Bulletin • June 1994 provisions of the Investment Advisers Act and all activities conducted by banks and to take (1940), although the SEC has some authority any appropriate enforcement action to assure under the Investment Company Act (1940) to that the activity is conducted in compliance with regulate the activities of banks that serve as law and safely and soundly. investment advisers to mutual funds. It has been suggested that the federal banking The exemptions from the securities laws for agencies are limited, both in their authority and banks were originally adopted in recognition of in their mission, by the concept of "safety and the comprehensive supervisory and regulatory soundness." We do not view it that way at all. scheme governing the activities of banks. Be- The federal banking agencies have, since their cause the federal banking agencies already had establishment, recognized that the concept of broad supervisory and regulatory authority, it safety and soundness is broad and encompasses was deemed unnecessary in the eyes of the protecting bank customers from conflicts of in- Congress to add a second layer of regulation that terest, misleading or inaccurate information, and covered securities activities of banks. Some have improper sales activities. This authority is key to suggested that the Congress adopted the bank maintaining public confidence in individual banks exemptions from the securities laws based on the and in the banking industry and is the very perception that banks were not permitted to definition of "safe and sound" operation. engage, and were not engaging, in most securities activities. However, the legislative history of the Securities Exchange Act indicates that banks did THE ROLE OF THE FEDERAL RESERVE in fact engage in a broad range of securities activities in 1934 and that the Congress was The Federal Reserve has had extensive experiaware of this. In fact, the types of securities ence and has developed considerable expertise in activities that banks conducted in 1934 are simi- addressing safety and soundness issues, including lar to the types of securities activities that banks customer protection issues, arising from the secuconduct today. rities activities of banks and their affiliates. Fed- The bank regulatory structure reflects the phi- eral Reserve examiners review, on a regular basis, losophy that the supervision and regulation of bank securities-related functions, such as providbanks must be done on the basis of the full range ing discount and full service brokerage, dealing in of products and services that banks provide to municipal and government securities, providing their customers, not on a piecemeal basis. Be- investment advisory services, and selling nondecause banks offer a myriad of financial services posit investment instruments (for example, comand products to the same customer, often at the mercial paper and other bank debt instruments). same time, bank regulators must have authority When a banking organization conducts securito regulate all aspects of that relationship. More- ties activities outside the bank, through a subsidover, banks take positions across products and iary or an affiliate that is a broker-dealer, it is instruments, and the risk to the organization subject to the jurisdiction of both the banking must be evaluated on a consolidated basis, not by agencies and the securities regulators. For examthe legal form or structure of the individual ple, the Board has permitted bank holding comentities in the banking organizations. Thus, the panies to own nonbank "section 20 affiliates," federal banking agencies have full authority to which are registered broker-dealers subject to restrict the activities that banks may conduct, the SEC oversight that engage in a very limited volmanner in which they conduct these activities, ume of underwriting and dealing of corporate the ability of banks to combine these activities securities as well as other securities activities and provide customer discounts, the policies and permissible for banks. Generally, the organization supervisory structure that banks must have in is not subject to duplicative examinations or regplace to conduct these activities, and their risk ulations because the Federal Reserve avoids remanagement strategies and controls as well as all peating those tasks performed by the SEC or an other aspects of the activity. The federal banking SRO. The SRO examination focuses on the secagencies also have full authority to examine any tion 20 affiliate's compliance with SRO rules and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 519 the federal securities laws. Our annual examina- through specific written and oral disclosures and tion of a section 20 affiliate focuses not only on its through other means—of the differences between financial condition but also on its compliance with insured deposits and uninsured investments and the Glass-Steagall Act and the effectiveness of its by further limiting the incentive compensation of internal controls addressing Board-imposed fire- certain bank employees. Moreover, banks must wall requirements. Although our examiners con- comply with these guidelines even when the insult with the SROs to assure effective coordina- vestment products are being sold by an SEC tion of examination activities, there is little regulated broker-dealer. overlap between the content of our examinations The Federal Reserve is committed to closely and those of the SROs except in the area of monitoring banks' securities sales practices. Exreviewing the maintenance of adequate capital. amining for compliance with the interagency Banks that underwrite and deal in U.S. govern- statement and with other Board regulations is ment securities and specific types of municipal part of the annual safety and soundness examiobligations are generally subject to the same reg- nation we conduct in state member banks. In ulatory regime that applies to nonbank govern- cases warranting remedial action, appropriate ment securities dealers. With regard to other enforcement measures can and are initiated, intypes of securities activities, such as mutual fund cluding issuing orders to cease unsuitable pracsales, our informal surveys indicate that the great tices, assessing civil money penalties, and barmajority of retail securities sales that take place ring from the industry those individuals who on the premises of state member banks are con- have seriously abused their responsibilities. ducted through an arrangement with a nonbank Besides their examination and enforcement broker-dealer. Under these arrangements, the se- tools, the Consumer and Community Affairs Dicurities sales are conducted by a third party that is vision and the Office of Public Affairs of the fully regulated under the securities laws. Thus, as Federal Reserve are considering several educafar as we have been able to determine, a relatively tional materials and programs designed to edusmall number of state member banks directly sell cate investors and bankers about the issues nongovernment securities to retail customers. raised by the interagency statement. These initi- The Federal Reserve is sensitive to the need atives would be incorporated into the consumer that bank customers be fully informed when and banker education programs currently sponengaging in securities sales on the premises of sored by the Reserve Banks. banks, whether the brokerage services are offered by the bank's employees or those of a broker-dealer. Concerns about investor protec- COMMENTS ON H.R.3447—THE tion and the safety and soundness of the banking APPROPRIATE REGULATORY SCHEME FOR organizations prompted our efforts to update and SECURITIES BROKERAGE AND MUNICIPAL unify previous guidance developed over the past SECURITIES ACTIVITIES CONDUCTED BY ten years for sales of various securities and other BANKS uninsured investment products. The federal banking agencies concluded this H.R.3447 would prohibit banks from directly review and update in February and jointly issued conducting most securities activities. The Board uniform guidelines that govern the sale of nonde- has several concerns about this approach. posit investment products on bank premises, in- H.R.3447 would prohibit banks from acting as cluding mutual funds and other securities. The general securities brokers, municipal securities interagency statement addresses retail sales prac- brokers and dealers, and private placement tices and incorporates many of the same princi- agents for most securities. The Board believes ples of fair practice applicable to broker-dealers. that the effects of these prohibitions would be to The interagency statement goes a step further stifle competition in the marketplace for these than the rules that apply to nonbank broker- services, which views many of these services as dealers by specifying additional steps banks must alternatives to lending transactions and traditiontake to ensure that customers are made aware— ally has sought these services from banks. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 Federal Reserve Bulletin • June 1994 provisions would also limit consumers' ability to SROs, does not have inspection or enforcement use their banks to accommodate all of their authority. Those duties were delegated to the financial services needs. In addition, they would existing regulators for the securities and bankcurtail access to capital markets for small munic- ing industries. Accordingly, the banking agenipal issuers that rely on local dealer banks to cies have primary inspection and enforcement underwrite their debt securities. authority for MSRB rules with respect to dealer These prohibitions would also significantly in- banks. The SEC also retains direct enforcement crease costs to small banks without improving authority over dealer banks. supervision of their securities activities. Small We are not aware of any problems with this banks often provide securities brokerage ser- system of regulation. I note that, in many banks, vices as an accommodation to their customers the government and municipal securities activiand may not find it feasible to continue to provide ties are conducted by the same personnel, and any securities services if required to bear the cost disrupting this arrangement would involve conof establishing a broker-dealer affiliate. Several siderable personnel costs for banks without any small banks also make mutual funds available to certain corresponding greater protection for bank customers under arrangements with fund distrib- customers. utors, but do not engage in active sale programs. Small dealer banks may not find it cost-effective In many cases, it would not be feasible for these to create a separate broker-dealer subsidiary, as banks to create broker-dealer subsidiaries, nor is would be required by H.R.3447. Consequently, the volume of business high enough to justify a these dealers could be deriven out of the market. partnership with a third party broker-dealer. The This action could have an adverse effect on Board is concerned that H.R.3447 would have smaller municipalities that traditionally rely on the effect of forcing many small banks—particu- community banks to assist in structuring and larly those located in small and rural communi- underwriting their debt securities to raise necesties—to abandon all brokerage services, even sary capital. Frequently, the local dealer bank, isolated "accommodation trades," to the detri- because of its commitment to the community, is ment of customer service. the only participant in the financial service industry that is willing to address the needs of such an issuer. MUNICIPAL SECURITIES Prior legislation addressed these and similar concerns by including several carefully drawn H.R.3447 would also require municipal securi- exemptions that would have permitted banks to ties dealer banks (dealer banks) to incur the continue to conduct certain securities activities expense and administrative burdens of moving that banks have directly conducted safely and their municipal dealer departments out of the soundly for many years. Among the kinds of banks into separate brokerage firms. This re- exemptions that the Congress should consider quirement appears unnecessary, however, are exemptions for private placement activities, given the current law. Under the Securities for municipal securities activities, and for the Exchange Act, dealer banks and municipal se- brokerage activities of small banks. We note that curities firms are required to register with the H.R.3447 already contains an exception that SEC and are subject to a comprehensive set of appears designed to permit banks to continue to fair practice and uniform practice rules admin- conduct certain brokerage activities in connecistered by an SRO, the Municipal Securities tion with their trust activities. Rulemaking Board (MSRB). Banks register their dealer departments with the SEC as prescribed by SEC rule 15Ba2-l. The MSRB's CONCLUSION rules, which must be approved by the SEC, encompass the same areas covered by SRO The Board believes that a comprehensive prorules applicable to broker-dealers for corporate posal that repeals the outdated restrictions of the securities. The MSRB, unlike other securities Glass-Steagall Act and that modifies the bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 521 exemptions to the securities laws, while making believe, however, that it is necessary or approprovision for banks to continue to conduct cer- priate to take the step of forcing a reorganization tain limited traditional banking activities and for of bank securities activities solely for the pursmall banks to continue to serve the needs of pose of bringing these activities within the SEC's their customers, has merit. The Board does not supervision and regulation. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 Announcements JOINT STATEMENT OF NORTH AMERICAN slightly the degree of pressure on reserve positions. FINANCIAL GROUP This action was expected to be associated with a small increase in short-term money market interest On April 26, 1994, the following joint statement rates. was issued by the Finance Ministers and Central Bank Governors of Canada, Mexico, and the STATEMENT BY CHAIRMAN GREENSPAN United States: ON THE NOMINATION OF TWO NEW Last year, the successful conclusion of the North Ameri- MEMBERS OF THE BOARD can Free Trade Agreement laid the foundation for a new era of expanded economic and financial relations among Chairman Alan Greenspan of the Federal Reserve our economies. Board issued on April 22, 1994, the following In recognition of our increasingly interdependent ecostatement: nomic relationship, the Finance Ministers and Central Bank Governors of Canada, Mexico and the United President Clinton has chosen two eminently qualified States today inaugurated a new consultive group, the economists as members of the Board of Governors of the North American Financial Group. This cooperative Federal Reserve System. I have had the pleasure of mechanism is designed to provide a forum for more working with Dr. Blinder in the past year and have regular consultations on economic and financial been singularly impressed with his capabilities. I very developments. much look forward to working with him as the Board's We anticipate an annual meeting of the Finance Min- Vice Chairman and trust the Senate will expedite his isters and Central Bank Governors of these three counconfirmation. tries, with more frequent meetings at the Deputies level. Although I have not had the opportunity to work with The Ministers and Governors also announced today Dr. Yellen, her credentials are clearly impressive. I the establishment of a tri-lateral foreign exchange swap expect that she will make a significant contribution to facility. The purpose of this standing credit facility is to the Federal Reserve. expand the pool of potential resources available to the monetary authorities of each country to maintain orderly exchange markets. RELEASE OF QUARTERLY TABLE The swap facility has three components: OF FACTORS TO ADJUST INTEREST INCOME • The U.S. and Mexico put in place swap agreements OF SECTION 20 SUBSIDIARIES for up to $6.0 billion, with the Treasury and the Federal Reserve each participating up to $3.0 billion. The Federal Reserve Board released on April 5, • The Bank of Canada and the Bank of Mexico ex- 1994, its quarterly table of factors to adjust interest panded their existing swap facility to CAN$1.0 billion. income to be used by section 20 companies that • The Federal Reserve and the Bank of Canada adopt the Board's alternative index revenue test to reaffirmed their existing swap line in the amount of $2.0 billion. measure compliance with the 10 percent limit on bank-ineligible securities activities. The table is The party has reciprocal privileges to draw on the available on request from Publications Services. other's currency in amounts equivalent to the amounts indicated above. AVAILABILITY OF REVISED LISTS SLIGHT INCREASE IN PRESSURE OF OVER-THE-COUNTER STOCKS AND ON RESERVE POSITIONS OF FOREIGN MARGIN STOCKS Chairman Alan Greenspan announced on April 18, The Federal Reserve Board published on April 22, 1994, that the Federal Reserve would increase 1994, a revised list of over-the-counter (OTC) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

523 stocks that are subject to its margin regulations. which transaction reports are required to be made Also published was the List of Foreign Margin pursuant to an effective transaction reporting plan. Stocks (Foreign List) for foreign equity securities Additional OTC securities may be designated as that meet the criteria in Regulation T (Credit by NMS securities in the interim between the Board's Brokers and Dealers). quarterly publications and will be immediately The lists were effective May 9, 1994, and super- marginable. The next publication of the Board's sede the previous lists that were effective Febru- OTC and Foreign List is scheduled for July 1994. ary 14, 1994. Besides NMS-designated securities, the Board The Foreign List specifies those foreign equity will continue to monitor the market activity of securities that are eligible for margin treatment at other OTC stocks to determine which stocks meet broker-dealers. There were 366 additions to the the requirements for inclusion and continued inclu- Foreign List, which now contains 683 foreign sion on the OTC List. equity securities. There were no deletions. The changes that have been made to the revised OTC List, which now contains 3,878 OTC stocks, CHANGES IN BOARD STAFF are as follows: The Board of Governors announced on April 18, • Two hundred seventeen stocks have been 1994, the appointment of Vincent Reinhart to the included for the first time, 180 under National official staff as an Assistant Director in the Divi- Market System (NMS) designation. sion of Monetary Affairs. Mr. Reinhart will serve • Forty stocks previously on the list have been as line officer and continue as Chief of the Banking removed for substantially failing to meet the and Money Market Analysis Section. He joined the requirements for continued listing. Board's staff in 1988 after having served at the • Forty-four stocks have been removed for Federal Reserve Bank of New York for five years. reasons such as listing on a national securities The Board also announced the retirement of exchange or involvement in an acquisition. Bruce M. Beardsley, Deputy Director, Division of Information Resources Management, effective The OTC List is published by the Board for the May 3, 1994. information of lenders and the general public. It Also, on May 3, 1994, the Board announced the includes all OTC securities designated by the Board promotion of Lynn S. Fox, Special Assistant to the pursuant to its established criteria as well as all Board in the Office of Board Members, to Deputy OTC stocks designated as NMS securities for Congressional Liaison. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

525 Legal Developments FINAL RULE—AMENDMENTS TO REGULATIONS Boonton Electronics Corporation: $.10 par common G, T, U, AND X Caretenders Health Corporation: $.02 par common The Board of Governors is amending 12 C.F.R. Parts Centocor, Inc.: 7.25% convertible subordinated de- 207, 220, 221, and 224, its Regulations G, T, U, and X bentures (Securities Credit Transactions; List of Marginable Chemfix Technologies, Inc.: $.01 par common OTC Stocks; List of Foreign Margin Stocks). The List Commercebancorp (California): No par common of Marginable OTC Stocks (OTC List) is composed of Craftmatic Industries, Inc.: $.01 par common stocks traded over-the-counter (OTC) in the United States that have been determined by the Board of Dover Regional Financial Shares: No par shares of Governors of the Federal Reserve System to be sub- beneficial interest ject to the margin requirements under certain Federal Reserve regulations. The List of Foreign Margin Embrace Systems Corporation: $.001 par common Stocks (Foreign List) is composed of foreign equity Enzymatics, Inc.: $.01 par common securities that have met the Board's eligibility criteria under Regulation T. The OTC List and the Foreign First Family Bank, FSB (Florida): $1.00 par common List are published four times a year by the Board. This FONIC, Inc.: $.01 par common document sets forth additions to and deletions from the previous OTC List and additions to the Foreign IKOS Systems, Inc.: $.01 par common List. Independence Bancorp, Inc. (New Jersey): $1.00 par Effective May 9, 1994, accordingly, pursuant to the common authority of sections 7 and 23 of the Securities Ex- Innovative Gaming Corporation of America: Warrants change Act of 1934, as amended (15 U.S.C. 78g and (expire 05-28-96) 78w), and in accordance with 12 C.F.R. 207.2(k) and Instrumentarium Corporation: American Depositary 207.6 (Regulation G), 12 C.F.R. 220.2(u) and 220.17 Receipts for non-restricted B shares (Regulation T), and 12 C.F.R. 221.20) and 221.7 (Regulation U), there is set forth below a listing of deletions National Loan Bank (Texas): $.01 par common from and additions to the OTC and additions to the Foreign List. Pacific International Services Corporation: No par common Deletions from the List of Marginable OTC Pettibone Corporation: $.01 par common Stocks Publishers Equipment Corporation: No par common Stocks Removed for Failing Continued Listing Qume Corporation: $.0001 par common Requirements Rocky Mountain Helicopters, Inc: $.02 par common Advacare, Inc.: $.01 par common American Dental Technologies, Inc.: $.01 par com- Sanborn, Inc.: Class A, Warrants (expire 07-02-97) mon Seven Oaks International, Inc.: $.10 par common American Film Technologies, Inc.: $.002 par common Sprouse-Reitz Stores, Inc.: Non-voting, $10.00 par American International Petroleum Corporation: common Rights (expire 02-11-94) Staff Builders, Inc.: Warrants (expire 01-31-95) American Nuclear Corporation: $.04 par common Sunlite, Inc.: $.20 par common Bank of San Pedro: No par common Uranium Resources, Inc.: Warrants (expire 02-26-94) Bird Corporation: $1.85 par cumulative convertible Vacu-Dry Company: No par common preferred Videcart, Inc.: $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 Federal Reserve Bulletin • June 1994 Warehouse Club, Inc.: $.10 par common Medco Containment Services, Inc.: 6% convertible Washington Scientific Industries, Inc.: $.10 par com- subordinated debentures mon Medical Marketing Group, Inc.: $.01 par common, Westwood One, Inc.: 6.75% convertible subordinated 7.5% convertible subordinated debentures debentures Mountaineer Bankshares of West Virginia: $2.50 par Wolf Financial Group, Inc.: $.01 par common common Stocks Removed for Listing on a National North American National Corporation: $.01 par com- Securities Exchange or Being Involved in an mon Acquisition Penn Central Bancorp, Inc.: $1.25 par common AGCO Corporation: $.01 par common Depositary Shares Quality Products, Inc.: $.00001 par common Quantum Restaurant Group, Inc.: $.01 par common Boulevard Bancorp, Inc.: $.04 par common Red Eagle Resources Corporation: $.10 par common California Water Service Company: No par common REFAC Technology Development Corporation: $.10 Care Enterprises, Inc.: $.01 par common par common Central Holding Company: No par common Rhodes, Inc.: No par common Chattahoochee Bancorp, Inc.: $1.00 par common Citizens National Corporation (Florida): $.01 par com- Terminal Data Corporation: $1.00 par common mon Thousand Trails, Inc.: No par common Commercial Bancorporation of Colorado: Class A, Titan Holdings, Inc.: $.01 par common $1.00 par common Titan Wheel International, Inc.: No par common Constellation Bancorp (New Jersey): $5.00 par com- Tocor II, Inc.: Units (expire 12-31-95) mon Corporate Software Incorporated: $.01 par common United Federal Bancorp, Inc.: $.01 par common United Postal Bancorp, Inc.: $.01 par common Eldec Corporation: $.05 par common ESB Bancorp, Inc. (Pennsylvania): $.01 par common VMX Inc.: $.01 par common First Fidelity Bancorp, Inc. (West Virginia): $1.25 par Additions to the List of Marginable OTC common Stocks First Savings Bank FSB, The (South Carolina): $1.00 par common 1st United Bancorp (Florida): $.01 par common First United Bank Group, Inc.: $5.00 par common; Series A, $1.00 par convertible preferred Advanced NMR Systems, Inc.: $.01 par common FloridaBank, A Federal Savings Bank: $1.00 par com- AES China Generating Co., Ltd.: Class A, $.01 par mon common Frontier Adjusters of America, Inc.: $.01 par common Air Express International Corporation: $.01 par common Greenwich Financial Corporation: $.01 par common AK Steel Holding Corporation: $.01 par common Alantec Corporation: $.001 par common Hamptons Bancshares, Inc. (New York): $4.00 par Ambanc Corporation: $10.00 par common common American International Petroleum Corporation: Class Humphrey, Inc.: No par common A, Warrants (expire 03-01-95) American United Global, Inc.: Warrants (expire 02- International Holding Capital Corp.: $1.00 par com- 17-96) mon Anchor Gaming: $.01 par common Anesta Corporation: $.001 par common Jackson County Federal Bank, A Federal Savings Applied Biometrics, Inc.: $.01 par common Bank (Oregon): $1.00 par common Applied Digital Access, Inc.: No par common Arden Industrial Products, Inc.: $.01 par common McGaw, Inc.: $1.00 par common Aryt Industries Ltd.: Ordinary shares (NIS $1.00) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 527 Battery Technologies, Inc.: No par common Employee Solutions, Inc.: No par common Bay Ridge Bancorp, Inc. (New York) $.10 par com- Encore Computer Corporation: $.01 par common mon Equity Inns, Inc.: $.01 par common Berkley, W.R. Corporation: Depositary Shares Equity Marketing, Inc.: $.001 par common Biocryst Pharmaceuticals, Inc.: $.01 par common Esmor Correctional Services, Inc.: $.01 par common Biosepra Inc.: $.01 par common Blimpie International, Inc. $.01 par common Federal Industries Ltd.: Class A convertible common Borror Corporation: No par common Financial Benefit Group Inc.: Class A, $.01 par com- Broad National Bancorporation (New Jersey): 8Vi% mon cumulative convertible preferred Finishmaster, Inc.: $1.00 par common Bugaboo Creek Steak House, Inc.: $.01 par common First Alert, Inc.: $.01 par common First Commerce Bancshares, Inc. (Nebraska): Class CAI Wireless Systems, Inc.: No par common B, $.20 par common Cameron Ashley Inc.: No par common First Financial Bancorp, Inc. (Illinois): $.10 par com- Cantel Industries, Inc.: $.10 par common mon Career Horizons, Inc.: $.01 par common First Independence Corporation: $.01 par common Celadon Group, Inc.: $.033 par common First Patriot Bankshares Corporation (Virginia): $2.50 Cerplex Group Inc., The: $.001 par common par common Champs Entertainment, Inc.: $.01 par common First-Knox Banc Corp. (Ohio): $3,125 par common Charter Bank, S.B. (Illinois): $1.00 par common Flextronics International Ltd.: $.01 par common Charter Federal Savings Bank (Virginia): $.01 par Fuel-Tech, N.V.: $.01 par common common Ciber, Inc.: $.01 par common Gametek, Inc.: $.01 par common Cidco Incorporated: $.01 par common Gasonics International Corporation: $.001 par com- Citi-Bancshares, Inc. (Florida): $.01 par common mon CMG Information Services, Inc.: $.01 par common Global Village Communication, Inc.: $.001 par com- CNS, Inc.: $.01 par common mon Commonwealth Federal Savings Bank (Pennsylvania): GP Financial Corporation: $.01 par common $.10 par common Graff Pay-Per-View, Inc.: $.01 par common Concord Holding Corporation: $.01 par common Great Financial Corporation: $.01 par common Conestoga Bancorp, Inc. (New York): $.01 par com- Great Lakes Aviation, Ltd.: $.01 par common mon GTS Duratek, Inc.: $.01 par common Consep, Inc.: $.01 par common Gulf South Medical Supply, Inc.: $.01 par common Conwest Exploration Company Ltd.: No par common Copart, Inc.: No par common Harris Savings Bank (Pennsylvania): $.01 par common Harvey Universal, Inc.: $.01 par common Dakotah, Incorporated: $.01 par common Health Power, Inc.: $.01 par common Healthcare Daktronics, Inc.: No par common Imaging Services, Inc.: Class B, redeemable Warrants Deflecta-Shield Corporation: $.01 par common (expire 11-12-96) Delrina Corporation: No par common Healthy Planet Products, Inc.: $.01 par common Dialogic Corporation: No par common Hemasure Inc.: $.01 par common Digital Link Corporation: No par common Hilite Industries, Inc.: $.01 par common Dolco Packaging Corporation: $.01 par common Hirsch International Corporation: Class A, $.01 par Drypers Corporation: $.001 par common common DSP Group, Inc.: $.001 par common Home Theater Products International Inc.: No par common; Warrants (expire 08-14-94) Ecogen, Inc.: Warrants (expire 01-31-98) Hugoton Energy Corporation: No par common Effective Management Systems, Inc.: $.01 par com- Hungarian Telephone & Cable Corp.: $.001 par common mon Electric Fuel Corporation: $.01 par common Electronic FAB Technology Corporation: $.01 par ID Biomedical Corporation: No par common common Igen, Inc.: $.001 par common Eltron International, Inc.: No par common Infosoft International, Inc.: $.01 par common Emmis Broadcasting Corporation: Class A, $.01 par Integrated Micro Products PLC: American Depositary common Shares Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 Federal Reserve Bulletin • June 1994 Integrated Silocon Systems, Inc.: $.01 par common Nexagen Inc.: $.01 par common Intercel, Inc.: $.01 par common NN Ball & Roller, Inc.: $.01 par common Interim Services Inc.: $.01 par common Northwest Airlines Corporation: Class A, $.01 par International Gaming Management, Inc.: $.001 par common common Norton McNaughton, Inc.: $.01 par common International Nesmont Industrial Corporation: No par common Olympic Steel, Inc.: No par common International Post Limited: $.01 par common Optima Petroleum Corporation: No par common Orthopedic Technology, Inc.: $.01 par common Jackson Hewitt Inc.: $.02 par common Jameson Inns, Inc.: $.10 par common Parcplace Systems, Inc.: $.001 par common Jefferson Savings and Loan Association, F.A. (Virgin- Paul-Son Gaming Corporation: $.01 par common ia): $3.00 par common PC Service Source, Inc.: $.01 par common Just for Feet, Inc.: $.0001 par common Peoples Bank Corporation of Indianapolis: Non-voting, No par common Kiddie Products, Inc.: $.10 par common Permanent Bancorp, Inc. (Indiana): $.01 par common Kinross Gold Corporation: No par common Perpetual Midwest Financial, Inc.: $.01 par common Personnel Management Inc.: No par common L.A. T Sportswear Inc.: No par common Pet Food Warehouse, Inc.: $.01 par common Lacrosse Footwear Inc.: $.01 par common Petco Animal Supplies, Inc.: $.0001 par common Lancit Media Productions Ltd.: $.001 par common Peterborough Savings Bank (New Hampshire): Landmark Bancshares, Inc. (Kansas): $.10 par com- $.01 par common mon Petrolane Incorporated: Class B, $.01 par common Laser Video Network, Inc.: $.001 par common Prime Retail, Inc.: $.01 par common; Series B, cumu- Leaseway Transportation Corporation: $.01 par com- lative convertible preferred mon Procept, Inc.: $.01 par common LFS Bancorp, Inc. (Kentucky): $.01 par common Prophet 21, Inc.: $.01 par common Mapinfo Corporation: $.002 par common Qlogic Corporation: $.10 par common Marshalltown Financial Corporation: $.01 par com- Quality Dining, Inc.: No par common mon Quality Systems, Inc.: $.01 par common Media Vision Technology, Inc.: Convertible subordinated debentures due 2003 Ramtron International Corporation: $.01 par common Mego Financial Corporation: No par common Redfed Bancorp Inc. (California): $.01 par common Meritrust Federal Savings Bank (Louisiana): $1.00 par Reliance Bancorp, Inc. (New York): $.01 par common common Renaissance Communications Corp.: $.01 par com- Meyerson, M.H., & Co., Inc.: $.01 par common mon MFB Corporation: No par common Reptrone Electronics, Inc.: $.01 par common Microfluidics International Corporation: $.01 par com- Retirement Care Associates, Inc.: $.0001 par common mon Riverview Savings Bank, F.S.B. (Washington): Minnesota Brewing company: $.01 par common $1.00 par common Minnesota Educational Computing Corporation: Roanoke Gas Company: $5.00 par common $.01 par common Rock-Tenn Company: Class A, $.01 par common Motorcar Parts & Accessories, Inc.: $.01 par common MPTV, Inc.: $.005 par common SA Holdings, Inc.: $.0001 par common MRV Communications, Inc.: $.01 par common; Sanctuary Woods Multimedia Corporation: No par Warrants (expire 12-07-97) common MTI Technology Corporation: $.001 par common Security Environmental Systems, Inc.: $.03 par common National Techteam Inc.: $.01 par common Serving Software Inc.: $.01 par common Natural Microsystems Corporation: $.01 par common Shuffle Master, Inc.: Warrants (expire 01-20-98) Neurobiological Technologies, Inc.: $.001 par com- Shurgard Storage Centers, Inc.: Class A, $.01 par mon common New World Communications Group, Inc.: Class A, Sigmatron International, Inc.: $.01 par common $.01 par common Softdesk Inc.: $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 529 Softkey International Inc.: $.01 par common; Additions to the List of Foreign Margin Stocks Warrants (expire 03-26-96) Sonic Solutions: No par common Aisin Seiko Co., Ltd.: ¥ 50 par common Southern Missouri Bancorp, Inc.: $.01 par common Aiwa Co., Ltd.: ¥ 50 par common Southern Starr Broadcasting Group, Inc.: $.10 par Akita Bank, Ltd.: ¥ 50 par common common Alps Electric Co., Ltd.: ¥ 50 par common Amada Co., Ltd.: ¥ 50 par common Standish Care Company, The: $.01 par common; Amada Metrecs Co., Ltd.: ¥ 50 par common Series A, $.01 par cumulative convertible preferred Amano Corp.: ¥ 50 par common Sunshine Mining Company: Warrants (expire 03-09- Anritsu Corp.: ¥ 50 par common 99) Aoki Corp.: ¥ 50 par common Aoki International Co., Ltd.: ¥ 50 par common Tatham Offshore, Inc.: $.01 par common Aomori Bank, Ltd.: ¥ 50 par common Telular Corporation: $.01 par common Asahi Bank, Ltd.: ¥ 50 par common Texas Regional Bancshares, Inc.: Class A voting, Asahi Diamond Industrial Co., Ltd.: ¥ 50 par common $1.00 par common Asatsu Inc.: ¥ 50 par common TJ Systems Corporation: Series A, $.01 par convert- Ashikaga Bank Ltd.: ¥ 50 par common ible preferred Atsugi Nylon Industrial Co., Ltd.: ¥ 50 par common Total Containment, Inc.: $.01 par common Autobacs Seven Co., Ltd.: ¥ 50 par common Tractor Supply Company: $.008 par common Traanstexas Gas Corporation: $.01 par common Bank of Fukuoka, Ltd.: ¥ 50 par common Triangle Bancorp, Inc. (North Carolina): No par com- Bank of Hiroshima: ¥ 50 par common mon Bank of Kinki Ltd.: ¥ 50 par common Bank of Kyoto, Ltd.: ¥ 50 par common Triple S Plastics, Inc.: No par common Bank of Nagoya, Ltd.: ¥ 50 par common Trism, Inc.: $.01 par common Bank of Yokohama, Ltd.: ¥ 50 par common Tufco Technologies, Inc.: $.01 par common Banyu Pharmaceutical Co., Ltd.: ¥ 50 par common Best Denki Co., Ltd.: ¥ 50 par common Ultrak, Inc.: No par common Brother Industries, Ltd.: ¥ 50 par common Uniroyal Technology Corporation: Warrants (expire 06-01-2003) Casio Computer Co., Ltd.: ¥ 50 par common United States Exploration, Inc.: $.0001 par common Chiba Bank, Ltd.: ¥ 50 par common Uromed Corporation: No par common Chiyoda Corp.: ¥ 50 par common USA Mobile Communications Holdings Inc.: $.01 par Chiyoda Fire & Marine Insurance Co., Ltd.: ¥ 50 par common common Chudenko Corp.: ¥ 50 par common Vaughn Communications, Inc.: $.10 par common Chugai Pharmaceutical Co., Ltd.: ¥ 50 par common Vectra Banking Corporation: $.01 par common Chugoku Bank Ltd.: ¥ 50 par common Venezuelan Goldfields Ltd.: No par common Chugoku Electric Power Co. Inc.: ¥ 50 par common Vivus Inc.: No par common Chuo Trust & Banking Co., Ltd.: ¥ 50 par common Citizen Watch Co., Ltd.: ¥ 50 par common Cosmo Oil Co. Ltd.: ¥ 50 par common Wandel & Goltermann Technologies, Inc.: $.01 par Cosmo Securities Co., Ltd.: ¥ 50 par common common Credit Saison Co., Ltd.: ¥ 50 par common Wayne Savings and Loan Company, Inc. (Ohio): CSK Corp.: ¥ 50 par common $1.00 par common Webco Industries, Inc.: $.01 par common Dai-Showa Paper Mfg. Co. Ltd.: ¥ 50 par common Wholesale Cellular USA Inc.: $.01 par common Dai-Tokyo Fire & Marine Insurance Co. Ltd.: ¥ 50 par Willard Peace Oil and Gas Company: Series A, common $.01 par cumulative convertible preferred Daicel Chemical Industries, Ltd.: ¥ 50 par common Wireless Cable of Atlanta, Inc.: $1.00 par common Daido Steel Co., Ltd.: ¥ 50 par common WTD Industries, Inc.: No par common Daihatsu Motor Co. Ltd.: ¥ 50 par common Daiichi Corp.: ¥ 50 par common Xcellenet Inc.: $.01 par common Daiichi Pharmaceutical Co., Ltd.: ¥ 50 par common Xpedite Systems, Inc.: $.01 par common Daiken Corp.: ¥ 50 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 Federal Reserve Bulletin • June 1994 Daikin Industries Ltd.: ¥ 50 par common Hitachi Software Engineering Co. Ltd.: ¥ 50 par Daikyo Inc.: ¥ 50 par common common Daimaru Inc.: ¥ 50 par common Hitachi Transport System Ltd.: ¥ 50 par common Dainippon Ink & Chemicals Inc.: ¥ 50 par common Hitachi Zosen Corp.: ¥ 50 par common Dainippon Pharmaceutical Co. Ltd.: ¥ 50 par common Hokkaido Bank Ltd.: ¥ 50 par common Dainippon Screen Mfg. Co. Ltd.: ¥ 50 par common Hokkaido Electric Power Co. Inc.: ¥ 500 par common Daito Trust Constructions Co., Ltd.: ¥ 50 par com- Hokkaido Takushoku Bank Ltd.: ¥ 50 par common mon Hokkoku Bank Ltd.: ¥ 50 par common Daiwa Bank Ltd.: ¥ 50 par common Hokuetsu Bank Ltd.: ¥ 50 par common Daiwa Securities Co. Ltd.: ¥ 50 par common Hokuetsu Paper Mills Ltd.: ¥ 50 par common Denny's Japan Co. Ltd.: ¥ 50 par common Hokuriku Bank Ltd.: ¥ 50 par common Dowa Fire & Marine Insurance Co. Ltd.: ¥ 50 par Hokuriku Electric Power Co. Inc.: ¥ 50 par common common House Food Corp.: ¥ 50 par common Hoy a Corp.: ¥ 50 par common East Japan Railway Co.: ¥ 50 par common Hyogo Bank Ltd.: ¥ 50 par common Eighteenth Bank Ltd.: ¥ 50 par common Eisai Co. Ltd.: ¥ 50 par common Inax Corp.: ¥ 50 par common Ezaki Gilco Co. Ltd.: ¥ 50 par common Ishihara Sangyo Kaisha Ltd.: ¥ 50 par common Itochu Corp.: ¥ 50 par common Familymart Co. Ltd.: ¥ 50 par common Itoham Foods Inc.: ¥ 50 par common Fanuc Co. Ltd.: ¥ 50 par common Iyo Bank Ltd.: ¥ 50 par common Fuji Heavy Industries Ltd.: ¥ 50 par common Izumi Co. Ltd.: ¥ 50 par common Fujikura Ltd.: ¥ 50 par common Fujisawa Pharmaceutical Co. Ltd.: ¥ 50 par common Jaccs Co. Ltd.: ¥ 50 par common Fujita Kanko Inc.: ¥ 50 par common Japan Airport Terminal Co. Ltd.: ¥ 50 par common Fukuyama Transporting Co., Ltd.: ¥ 50 par common Japan Digital Laboratory Co. Ltd.: ¥ 50 par common Futaba Corp.: ¥ 50 par common Japan Securities Finance Co. Ltd.: ¥ 50 par common Futaba Industrial Co. Ltd.: ¥ 50 par common Japan Synthetic Rubber Co. Ltd.: ¥ 50 par common JGC Corp.: ¥ 50 par common General Sekiyu K.K.: ¥ 50 par common Joyo Bank Ltd.: ¥ 50 par common Godo Steel Ltd.: ¥ 50 par common Juroku Bank Ltd.: ¥ 50 par common Green Cross Corp.: ¥ 50 par common Jusco Co. Ltd.: ¥ 50 par common Gunma Bank Ltd.: ¥ 50 par common Gunze Ltd.: ¥ 50 par common Kagoshima Bank Ltd.: ¥ 50 par common Kakan Pharmaceutical Co. Ltd.: ¥ 50 par common Hachijuni Bank Ltd.: ¥ 50 par common Kamigumi Co. Ltd.: ¥ 50 par common Hankyu Corp.: ¥ 50 par common Kandenko Co. Ltd.: ¥ 50 par common Hankyu Department Stores, Inc.: ¥ 50 par common Kaneka Corp.: ¥ 50 par common Hanshin Electric Railway Co. Ltd.: ¥ 50 par common Kanematsu Corp.: ¥ 50 par common Hanwa Co. Ltd.: ¥ 50 par common Kankaku Securities Co. Ltd.: ¥ 50 par common Haseko Corp.: ¥ 50 par common Kansai Paint Co. Ltd.: ¥ 50 par common Hazama Corp.: ¥ 50 par common Kao Corp.: ¥ 50 par common Heiwado Co. Ltd.: ¥ 50 par common Katokichi Co. Ltd.: ¥ 50 par common Higashi-Nippon Bank Ltd.: ¥ 50 par common Kay aba Industry Co. Ltd.: ¥ 50 par common Higo Bank Ltd.: ¥ 50 par common Keiyo Bank Ltd.: ¥ 50 par common Hirose Electric Co. Ltd.: ¥ 50 par common Keiyo Co. Ltd.: ¥ 50 par common Hitachi Cable Ltd.: ¥ 50 par common Kenwood Corp.: ¥ 50 par common Hitachi Chemical Co. Ltd.: ¥ 50 par common Keyence Corp.: ¥ 50 par common Hitachi Construction Machinery Co. Ltd.: ¥ 50 par Kinden Corp.: ¥ 50 par common common Kinki Nippon Railway Co. Ltd.: ¥ 50 par common Hitachi Credit Corp.: ¥ 50 par common Kissei Pharmaceutical Co. Ltd.: ¥ 50 par common Hitachi Koki Co. Ltd.: ¥ 50 par common Kiyo Bank Ltd.: ¥ 50 par common Hitachi Maxell Ltd.: ¥ 50 par common Koa Fire & Marine Insurance Co. Ltd.: ¥ 50 par Hitachi Metals Ltd.: ¥ 50 par common common Hitachi Sales Corp.: ¥ 50 par common Koa Oil Co. Ltd.: ¥ 50 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 531 Kokusai Denshin Denwa Co. Ltd. (KDD): ¥ 50 par Nagasakiya Co. Ltd.: ¥ 50 par common common Nagase & Co. Ltd.: ¥ 50 par common Kokusai Electric Co. Ltd.: ¥ 50 par common Nagoya Railroad Co. Ltd.: ¥ 50 par common Kokusai Securities Co. Ltd.: ¥ 50 par common Namco Ltd.: ¥ 50 par common Konami Co. Ltd.: ¥ 50 par common National House Industrial Co. Ltd.: ¥ 50 par common Kumagai Gumi Co. Ltd.: ¥ 50 par common NCR Japan Ltd.: ¥ 50 par common Kurabo Industries Ltd.: ¥ 50 par common New Japan Securities Co. Ltd.: ¥ 50 par common New Oji Paper Co. Ltd.: ¥ 50 par common Kurimoto Ltd.: ¥ 50 par common NGK Spark Plug Co. Ltd.: ¥ 50 par common Kurita Water Industries Ltd.: ¥ 50 par common NHK Spring Co. Ltd.: ¥ 50 par common Kyocera Corp.: ¥ 50 par common Nichicon Corp.: ¥ 50 par common Kyodo Printing Co. Ltd.: ¥ 50 par common Nichiei Construction Co. Ltd.: ¥ 50 par common Kyowa Exeo Corp.: ¥ 50 par common Nichii Co. Ltd.: ¥ 50 par common Kyudenko Corp.: ¥ 50 par common Nichimen Corp.: ¥ 50 par common Kyushu Electric Power Co. Inc.: ¥ 500 par common Nippon Comsys Corp.: ¥ 50 par common Kyushu Matsushita Electric Co. Ltd.: ¥ 50 par com- Nippon Credit Bank Ltd.: ¥ 50 par common mon Nippon Densetsu Kogyo Co. Ltd.: ¥ 50 par common Nippon Electric Glass Co. Ltd.: ¥ 50 par common Mabuchi Motor Co. Ltd.: ¥ 50 par common Nippon Fire & Marine Insurance Co. Ltd.: ¥ 50 par Maeda Corp.: ¥ 50 par common common Maeda Road Construction Co. Ltd.: ¥ 50 par common Nippon Hodo Co. Ltd.: ¥ 50 par common Makita Corp.: ¥ 50 par common Nippon Meat Packers Inc.: ¥ 50 par common Marudai Food Co. Ltd.: ¥ 50 par common Nippon Paint Co. Ltd.: ¥ 50 par common Maruetsu Inc.: ¥ 50 par common Nippon Road Co. Ltd.: ¥ 50 par common Maruha Corp.: ¥ 50 par common Nippon Sanso Corp.: ¥ 50 par common Matsushita Communication Industrial Co. Ltd.: ¥ Nippon Shokubai Co. Ltd.: ¥ 50 par common 50 par common Nippon Television Network Corp.: ¥ 50 par common Matsushita Refrigeration Co.: ¥ 50 par common Nippon Trust Bank Ltd.: ¥ 50 par common Matsushita Seiko Co. Ltd.: ¥ 50 par common Nippon Zeon Co. Ltd.: ¥ 50 par common Matsushita-Kotobuki Electronics Industries Ltd.: Nishi-Nippon Bank Ltd.: ¥ 50 par common ¥ 50 par common Nishi-Nippon Railroad Co. Ltd.: ¥ 50 par common Max Co. Ltd.: ¥ 50 par common Nishimatsu Construction Co. Ltd.: ¥ 50 par common Michinoku Bank Ltd.: ¥ 50 par common Nissan Chemical Industries Ltd.: ¥ 50 par common Mikuni Coca-Cola Bottling Co. Ltd.: ¥ 50 par com- Nissan Fire & Marine Insurance Co. Ltd.: ¥ 50 par mon common Minebea Co. Ltd.: ¥ 50 par common Nissei Sangyo Co. Ltd.: ¥ 50 par common Minolta Camera Co. Ltd.: ¥ 50 par common Nissha Printing Co. Ltd.: ¥ 50 par common Misawa Homes Co. Ltd.: ¥ 50 par common Nisshin Fire & Marine Insurance Co. Ltd.: ¥ 50 par Mitsubishi Cable Industries Ltd.: ¥ 50 par common common Mitsubishi Gas Chemical Co. Inc.: ¥ 50 par common Nisshin Steel Co. Ltd.: ¥ 50 par common Mitsubishi Motors Corp.: ¥ 50 par common Nisshinbo Industries Inc.: ¥ 50 par common Mitsubishi Petrochemical Co. Ltd.: ¥ 50 par common Nissho Iwai Corp.: ¥ 50 par common Mitsui Construction Co. Ltd.: ¥ 50 par common Nissin Food Products Co. Ltd.: ¥ 50 par common Mitsui Engineering & Shipbuilding Co. Ltd.: ¥ 50 par Nitsuko Corp. ¥ 50 par common common Nitto Denko Corp.: ¥ 50 par common Mitsui Petrochemical Industries Ltd.: ¥ 50 par com- Nok Corp.: ¥ 50 par common mon Noritz Corp.: ¥ 50 par common Mitsui Real Estate Sales Co. Ltd.: ¥ 50 par common Mitsui-Soko Co. Ltd.: ¥ 50 par common Ogaki Kyoritsu Bank Ltd.: ¥ 50 par common Mitsumi Electric Co. Ltd.: ¥ 50 par common Okasan Securities Co. Ltd.: ¥ 50 par common Mizuno Corp.: ¥ 50 par common Okumura Corp.: ¥ 50 par common Mochida Pharmaceutical Co. Ltd.: ¥ 50 par common Olympus Optical Co. Ltd.: ¥ 50 par common Morinaga Milk Industry Co. Ltd.: ¥ 50 par common Omron Corp.: ¥ 50 par common Murata Mfg. Co. Ltd.: ¥ 50 par common Ono Pharmaceutical Co. Ltd.: ¥ 50 par common Musashino Bank Ltd.: ¥ 50 par common Onward Kashiyama Co. Ltd.: ¥ 50 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 Federal Reserve Bulletin • June 1994 Orient Corp.: ¥ 50 par common Sumitomo Marine & Fire Insurance Co. Ltd.: ¥ 50 par Orix Corp.: ¥ 50 par common common Sumitomo Rubber Industries Ltd.: ¥ 50 par common Penta-Ocean Construction Co. Ltd.: ¥ 50 par common Sumitomo Trust & Banking Co. Ltd.: ¥ 50 par com- Pioneer Electronic Corp.: ¥ 50 par common mon Sumitomo Warehouse Co. Ltd.: ¥ 50 par common Q.P. Corp.: ¥ 50 par common Suruga Bank Ltd.: ¥ 50 par common SXL Corp.: ¥ 50 par common Raito Kogyo Co. Ltd.: ¥ 50 par common Rengo Co. Ltd.: ¥ 50 par common Tadano Ltd.: ¥ 50 par common Renown Inc.: ¥ 50 par common Taihei Dengyo Kaisha Ltd.: ¥ 50 par common Rinnai Corp.: ¥ 50 par common Taisei Prefab Construction Co. Ltd.: ¥ 50 par com- Rohm Co. Ltd.: ¥ 50 par common mon Ryosan Co. Ltd.: ¥ 50 par common Taiyo Yuden Co. Ltd.: ¥ 50 par common Takara Standard Co. Ltd.: ¥ 50 par common Sagami Railway Co. Ltd.: ¥ 50 par common Takuma Co. Ltd.: ¥ 50 par common Saibu Gas Co. Ltd.: ¥ 50 par common Tanabe Seiyaku Co. Ltd.: ¥ 50 par common Sakata Seed Corp.: ¥ 50 par common Terumo Corp.: ¥ 50 par common Sanki Engineering Co. Ltd.: ¥ 50 par common Toa Corp.: ¥ 50 par common Sankyo Aluminum Industry Co. Ltd.: ¥ 50 par com- Toa Steel Co. Ltd.: ¥ 50 par common Toagosei Chemical Industry Co. Ltd.: ¥ 50 par common mon Sankyu Inc.: ¥ 50 par common Toda Construction Co. Ltd.: ¥ 50 par common Santen Pharmaceutical Co. Ltd.: ¥ 50 par common Toei Co. Ltd.: ¥ 50 par common Sanwa Shutter Corp.: ¥ 50 par common Toenec Corp.: ¥ 50 par common Sanyo Chemical Industries Ltd.: ¥ 50 par common Toho Bank Ltd.: ¥ 50 par common Sanyo Securities Co. Ltd.: ¥ 50 par common Toho Co. Ltd.: ¥ 50 par common Secom Co. Ltd.: ¥ 50 par common Toho Gas Co. Ltd.: ¥ 50 par common Seibu Railway Co. Ltd. ¥ 50 par common Tokai Bank Ltd.: ¥ 50 par common Seiko Corp.: ¥ 50 par common Tokuyama Soda Co. Ltd.: ¥ 50 par common Seino Transportation Co. Ltd.: ¥ 50 par common Tokyo Broadcasting System Inc.: ¥ 50 par common Seiyu Ltd.: ¥ 50 par common Tokyo Dome Corp.: ¥ 50 par common Sekisui House Ltd.: ¥ 50 par common Tokyo Electron Ltd.: ¥ 50 par common Senshukai Co. Ltd.: ¥ 50 par common Tokyo Ohka Kogyo Co. Ltd.: ¥ 50 par common Seven-Eleven Japan Co. Ltd.: ¥ 50 par common Tokyo Rope Mfg. Co. Ltd.: ¥ 50 par common Seventy-Seven (67) Bank Ltd.: ¥ 50 par common Tokyo Sowa Bank Ltd.: ¥ 50 par common Shikoku Electric Power Co. Inc.: ¥ 50 par common Tokyo Steel Mfg, Co. Ltd.: ¥ 50 par common Shimadzu Corp.: ¥ 50 par common Tokyo Style Co. Ltd.: ¥ 50 par common Shimamura Co. Ltd.: ¥ 50 par common Tokyo Tatemono Co. Ltd.: ¥ 50 par common Shimano Inc.: ¥ 50 par common Tokyo Tomin Bank Ltd.: ¥ 50 par common Shinmaywa Industries Ltd.: ¥ 50 par common Tokyotokeiba Co. Ltd.: ¥ 50 par common Shionogi & Co. Ltd.: ¥ 50 par common Tokyu Construction Co. Ltd.: ¥ 50 par common Shiseido Co. Ltd.: ¥ 50 par common Tokyu Corp.: ¥ 50 par common Shizuoka Bank Ltd.: ¥ 50 par common Tokyu Land Corp.: ¥ 50 par common Showa Sangyo Co. Ltd.: ¥ 50 par common Tomen Corp.: ¥ 50 par common Siebe PLC: ¥ 50 par common Toshiba Ceramics Co. Ltd.: ¥ 50 par common Skylark Co. Ltd.: ¥ 50 par common Toshoku Ltd.: ¥ 50 par common SMC Corp.: ¥ 50 par common Tostem Corp.: ¥ 50 par common Snow Brand Milk Products Co. Ltd.: ¥ 50 par common Toyo Communication Equipment Co. Ltd.: ¥ 50 par SS Pharmaceutical Co. Ltd.: ¥ 50 par common common Stanley Electric Co. Ltd.: ¥ 50 par common Toyo Engineering Corp.: ¥ 50 par common Sumitomo Bakelite Co. Ltd.: ¥ 50 par common Toyo Exterior Co. Ltd.: ¥ 50 par common Sumitomo Construction Co. Ltd.: ¥ 50 par common Toyo Ink Mfg. Co. Ltd.: ¥ 50 par common Sumitomo Forestry Co. Ltd.: ¥ 50 par common Toyo Suisan Kaisha Ltd.: ¥ 50 par common Sumitomo Heavy Industries Ltd.: ¥ 50 par common Toyo Trust & Banking Co. Ltd.: ¥ 50 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 533 Toyota Auto Body Co. Ltd.: ¥ 50 par common 2. The first sentence of section 210.1 is revised to read Toyota Tsusho Corp.: ¥ 50 par common as follows: Tsumura & Co.: ¥ 50 par common Section 210.1—Authority, purpose, and scope. Uni-Charm Corp.: ¥ 50 par common Uniden Corp.: ¥ 50 par common The Board of Governors of the Federal Reserve Sys- Uny Co. Ltd.: ¥ 50 par common tem (Board) has issued this subpart pursuant to the Ushio Inc.: ¥ 50 par common Federal Reserve Act, sections ll(i) and 0) (12 U.S.C. 248(i) and (j)), section 13 (12 U.S.C. 342), section 16 (12 U.S.C. 248(o) and 360), and section 19(f) Wacoal Corp.: ¥ 50 par common (12 U.S.C. 464); the Expedited Funds Availability Act Wako Securities Co. Ltd.: ¥ 50 par common (12 U.S.C. 4001 et seq.); and other laws. * * * Wheelock & Co. Ltd.: ¥ 50 par common 3. In section 210.2, paragraph (g) introductory text is Yakult Honsha Co. Ltd.:¥ 50 par common revised and a new paragraph (p) is added immediately Yamaguchi Bank Ltd.: ¥ 50 par common before the concluding text to read as follows: Yamaha Motor Co. Ltd.: ¥ 50 par common Yamaichi Securities Co. Ltd.: ¥ 50 par common Section 210.2—Definitions. Yamanashi Chuo Bank Ltd.: ¥ 50 par common Yamatake-Honeywell Co. Ltd.: ¥ 50 par common * * * * * Yamato Transport Co. Ltd.: ¥ 50 par common (g) Item means an instrument or a promise or order to Yamazaki Banking Co. Ltd.: ¥ 50 par common pay money, whether negotiable or not, that is: * * * Yaohan Japan Corp.: ¥ 50 par common Yasuda Trust & Banking Co. Ltd.: ¥ 50 par common Yodogawa Steel Works Ltd.: ¥ 50 par common (p) Uniform Commercial Code means the Uniform YBenimaru Co. Ltd.: ¥ 50 par common Commercial Code as adopted in a state. Yoshitomi Pharmaceutical Industries Ltd.: ¥ 50 par common Yuasa Corp.: ¥ 50 par common 4. In section 210.3, the last sentence of paragraph (a) is Zexel Corp.: ¥ 50 par common revised and a new paragraph (f) is added to read as follows: FINAL RULE—AMENDMENT TO REGULATION J Section 210.3—General provisions. The Board of Governors is amending 12 C.F.R. Part (a) * * * The circulars may, among other things, 210, its Regulation J (Collection of Checks and Other classify cash items and noncash items, require sepa- Items by Federal Reserve Banks and Funds Transfers rate sorts and letters, provide different closing times Through Fedwire). The Board is adopting amend- for the receipt of different classes or types of items, set ments to subpart A of its Regulation J to conform the forth terms of services, and establish procedures for warranties and various other provisions of Regulation adjustments on a Reserve Bank's books, including J to recent amendments to Regulation CC or to the amounts, waiver of expenses, and payment of interest Uniform Commercial Code. by as-of adjustment. Effective June 6, 1994, 12 C.F.R. Part 210 is amended as follows: (f) Relation to other law. The provisions of this sub- Part 210—Collection of Checks and Other part supersede any inconsistent provisions of the Items by Federal Reserve Banks and Funds Uniform Commercial Code, of any other state law, or Transfers Through Fedwire (Regulation J) of part 229 of this title, but only to the extent of the inconsistency. 1. The authority citation for part 210 is revised to read as follows: 5. In section 210.5, paragraph (a) introductory text and paragraph (a)(2) are revised, in paragraph (b)(3) the Authority. 12 U.S.C. 248(i), (j), and (o), 342, 360, 464, phrase "judgment or decree of the tender of defense" and 4001-4010. is revised to read "judgment or decree or the tender of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 Federal Reserve Bulletin • June 1994 defense", and a new paragraph (d) is added to read as Section 210.6—Status, warranties, and liability follows: of Reserve Bank. Section 210.5—Sender's agreement; recovery (b) * * * by Reserve Bank. (1) That the Reserve Bank is a person entitled to enforce the item (or is authorized to obtain payment (a) Sender's agreement. The warranties, authoriza- of the item on behalf of a person who is either: tions, and agreements made pursuant to this paragraph (i) Entitled to enforce the item; or may not be disclaimed and are made whether or not (ii) Authorized to obtain payment on behalf of a the item bears an indorsement of the sender. By person entitled to enforce the item); and sending an item to a Reserve Bank, the sender: (2) That the item has not been altered. The Reserve Bank also makes the warranties set forth in section 229.34(c) of this title, subject to the terms of (2) Warrants to each Reserve Bank handling the part 229 of this title. * * * item that: (c) * * * This paragraph does not lengthen the time limit for claims under section 229.38(g) of this title (which include claims for breach of warranty under (i) The sender is a person entitled to enforce the section 229.34 of this title). item or authorized to obtain payment of the item on behalf of a person entitled to enforce the item; 7. In section 210.9, paragraph (a)(5) is revised to read and as follows: Section 210.9—Settlement and payment. (ii) The item has not been altered; but this paragraph (a)(2) does not limit any warranty by a (a) * * * sender or other prior party arising under state law (5) Settlement with a Reserve Bank under paraor under subpart C of part 229 of this title; and graphs (a)(1) through (4) of this section shall be made by debit to an account on the Reserve Bank's books, cash, or other form of settlement to which (d) Security interest. To secure any obligation due or the Reserve Bank agrees, except that the Reserve to become due to a Reserve Bank by a sender or prior Bank may, in its discretion, obtain settlement by collecting bank under this subpart or subpart C of part charging the paying bank's reserve or clearing ac- 229 of this title, the sender and prior collecting bank, count. A paying bank may not set off against the by sending an item directly or indirectly to the Reserve amount of a settlement under this section the Bank, grant to the Reserve Bank a security interest in amount of a claim with respect to another cash item, all of the sender's or prior collecting bank's assets in cash letter, or other claim under section 229.34(c) of the possession of, or held for the account of, the this title or other law. Reserve Bank. The security interest attaches when a warranty is breached or any other obligation to the Reserve Bank is incurred. If the Reserve Bank, in its 8. In section 210.12, a new sentence is added after the sole discretion, deems itself insecure and gives notice first sentence of paragraph (a), paragraph (c) introducthereof to the sender or prior collecting bank, or if the tory text and paragraph (c)(2) are revised, paragraphs sender or prior collecting bank suspends payments or (d) through (g) are redesignated as paragraphs (e) is closed, the Reserve Bank may take any action through (h), respectively, new paragraphs (d) and (i) authorized by law to recover the amount of an obliga- are added, and newly-designated paragraph (e) contion, including, but not limited to, the exercise of cluding text and newly-designated paragraph (h) are rights of set off, the realization on any available revised to read as follows: collateral, and any other rights it may have as a creditor under applicable law. Section 210.12—Return of cash items and handling of returned checks. 6. In section 210.6, paragraphs (b)(1) and (b)(2) are revised, a new first sentence is added to paragraph (b) (a) * * * A paying bank that receives a cash item concluding text, and a new last sentence is added to directly or indirectly from a Reserve Bank also may paragraph (c) to read as follows: return the item prior to settlement, in accordance with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 535 section 210.9(a) and its Reserve Bank's operating warranty is breached or any other obligation to the circular. * * * Reserve Bank is incurred. If the Reserve Bank, in its sole discretion, deems itself insecure and gives notice thereof to the paying bank, returning bank, or (c) Paying bank's and returning bank's agreement. prior returning bank, or if the paying bank, returning The warranties, authorizations, and agreements made bank, or prior returning bank suspends payments or pursuant to this paragraph may not be disclaimed and is closed, the Reserve Bank may take any action are made whether or not the returned check bears an authorized by law to recover the amount of an indorsement of the paying bank or returning bank. By obligation, including, but not limited to, the exercise sending a returned check to a Reserve Bank, the of rights of set off, the realization on any available paying bank or returning bank— collateral, and any other rights it may have as a creditor under applicable law. (2) Makes the warranties set forth in section 229.34 9. Section 210.13 is revised to read as follows: of this title (but this paragraph does not limit any warranty by a paying or returning bank arising under Section 210.13—Unpaid items. state law); and (a) Right of recovery. If a Reserve Bank does not (d) Warranties by Reserve Bank. By sending a re- receive payment in actually and finally collected funds turned check and receiving settlement or other consid- for an item, the Reserve Bank shall recover by chargeeration for it, a Reserve Bank makes the returning back or otherwise the amount of the item from the bank warranties as set forth in section 229.34 of this sender, prior collecting bank, paying bank, or returntitle, subject to the terms of part 229 of this title. The ing bank from or through which it was received, Reserve Bank shall not have or assume any other whether or not the item itself can be sent back. In the liability to the transferee returning bank, to any sub- event of recovery from such a party, no party, includsequent returning bank, to the depositary bank, to the ing the owner or holder of the item, shall, for the owner of the check, or to any other person, except for purpose of obtaining payment of the amount of the the Reserve Bank's own lack of good faith or failure to item, have any interest in any reserve balance or other exercise ordinary care as provided in subpart C of part funds or property in the Reserve Bank's possession of 229 of this title. the bank that failed to make payment in actually and (e) * * * the Reserve Bank may, upon the entry of a finally collected funds. final judgment or decree, recover from the paying bank (b) Suspension or closing of bank. A Reserve Bank or returning bank the amount of attorneys' fees and shall not pay or act on a draft, authorization to charge other expenses of litigation incurred, as well as any (including a charge authorized by section 210.9(a)(5)), amount the Reserve Bank is required to pay because or other order on a reserve balance or other funds in its of the judgment or decree or the tender of defense, possession for the purpose of settling for items under together with interest thereon. section 210.9 or section 210.12 after it receives notice of suspension or closing of the bank making the settlement for that bank's own or another's account. (h) Settlement. A subsequent returning bank or depositary bank shall settle for returned checks in the same 10. Section 210.14 is revised to read as follows: manner and by the same time as for cash items presented for payment under this subpart. Section 210.14—Extension of time limits. (i) Security interest. To secure any obligation due or to become due to a Reserve Bank by a paying bank, returning bank, or prior returning bank under this If a bank (including a Reserve Bank) or nonbank payor subpart or subpart C of part 229 of this title, the is delayed in acting on an item beyond applicable time paying bank, returning bank, and prior returning limits because of interruption of communication or bank, by sending a returned check directly or indi- computer facilities, suspension of payments by a bank rectly to the Reserve Bank, grant to the Reserve or nonbank payor, war, emergency conditions, failure Bank a security interest in all of the paying bank's, of equipment, or other circumstances beyond its conreturning bank's, and prior returning bank's assets in trol, its time for acting is extended for the time the possession of, or held for the account of, the necessary to complete the action, if it exercises such Reserve Bank. The security interest attaches when a diligence as the circumstances require. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 Federal Reserve Bulletin • June 1994 FINAL RULE—AMENDMENTS TO REGULATION company for all such purchases or redemptions Y AND RULES REGARDING DELEGATION OF during the preceding 12 months, is equal to 10 AUTHORITY percent or more of the company's consolidated net worth. For the purposes of this section, "net con- The Board of Governors is amending 12 C.F.R. Parts sideration" is the gross consideration paid by the 225 and 265, its Regulation Y (Bank Holding Compa- company for all of its equity securities purchased or nies and Change in Bank Control), and its Rules redeemed during the period minus the gross consid- Regarding Delegation of Authority. On August 12, eration received for all of its equity securities sold 1992, the Board approved several proposals to change during the period other than as part of a new issue. certain procedures for obtaining Board approval of various applications and notices filed under the Federal Reserve Act, the Bank Holding Company Act, the (6) Exception for well-capitalized bank holding com- Bank Merger Act, the Change in Bank Control Act and panies. A bank holding company seeking to redeem various other statutes. All but one of these changes to or purchase its equity securities is not required to the Board's application and notice review procedures obtain prior Board approval for the redemption or were implemented by the Board at that time. Most of purchase under this section provided: these changes involved revising certain internal procedures of the Federal Reserve System (System), to improve the efficiency of processing applications that (i) The total and tier 1 risk-based capital ratios and are reviewed by the Board in conjunction with the the leverage capital ratio for the bank holding Reserve Banks and to reduce the regulatory burden company, both before and following the redempassociated with these application and notice proce- tion, exceed the thresholds established for "welldures. Two of the changes— eliminating the stock capitalized" state-member banks under 12 C.F.R. redemption notice requirement for "well-capitalized" 208.33(b)(1) as if the bank holding company (on a bank holding companies, and modifying the Board's consolidated basis) were deemed to be a state delegation rules pertaining to competition and market member bank; concentration—necessitate amendments to certain provisions of, respectively, the Board's Regulation Y and Rules Regarding Delegation of Authority. (ii) The bank holding company received a com- Effective May 4, 1994, 12 C.F.R. Parts 225 and 265 posite "1" or "2" rating at its most recent are amended as follows: BOPEC inspection; and Part 225—Bank Holding Companies and Change in Bank Control (Regulation Y) (iii) The bank holding company is not the subject of any unresolved supervisory issued. 1. The authority citation for part 225 continues to read as follows: Authority: 12 U.S.C. 1817(j)(13), 1818, 1831i, 1831p-l, Part 265—Rules Regarding Delegation of 1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3907, 3909, Authority 3310, and 3331-3351. 1. The authority citation for part 265 continues to read 2. Section 225.4 is amended by revising paragraph as follows: (b)(1), and adding a new paragraph (b)(6) to read as follows: Authority: 12 U.S.C. 248(i) and (k). Section 225.4—Corporate practices. 2. Section 265.11 is amended by revising paragraph (c)(ll)(v) to read as follows: (b) * * * —(1) Filing notice. Except as provided in Section 265.11—Functions delegated to Federal 12 C.F.R. 225.4(b)(6), a bank holding company shall Reserve Banks. give the Board prior written notice before purchasing or redeeming its equity securities if the gross consideration for the purchase or redemption, when (c) * * * aggregated with the net consideration paid by the * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 537 (v) With respect to bank holding company forma- banking organization in Missouri, controlling deposits tions, bank acquisitions or mergers, the proposed of $13.4 million, representing less than 1 percent of the transaction involves two or more banking organi- total deposits in commercial banking organizations in zations that, upon consummation of the proposal, the state. Upon consummation of the proposed transwould control over 35 percent of total deposits action, Central would remain the fifth largest commer- (including 50 percent of thrift deposits) in banking cial banking organization in Missouri, controlling deoffices in the relevant geographic market, or posits of $2.19 billion, representing approximately would result in an increase of at least 200 points in 3.9 percent of total deposits in commercial banking the Herfindahl-Hirschman Index (HHI) in a organizations in the state. highly concentrated market (a market with a postmerger HHI of at least 1800); or Competitive Considerations Central and South County compete directly in the Boone County, Missouri, banking market.3 Central is the largest of 14 depository institutions in the market,4 ORDERS ISSUED UNDER BANK HOLDING controlling deposits of $388.1 million, representing COMPANY ACT approximately 35.6 percent of total deposits in depository institutions in the market ("market deposits").5 Orders Issued Under Section 3 of the Bank South County is the 12th largest depository institution Holding Company Act in the market, controlling deposits of $12.8 million, representing approximately 1.2 percent of market de- Central Bancompany, Inc. posits. Upon consummation of this proposal, Central Jefferson City, Missouri would remain the largest depository institution in the Boone County banking market, controlling deposits of Order Approving the Acquisition of a Bank Holding $400.9 million, representing approximately 36.8 per- Company cent of market deposits. The Herfindahl-Hirschman Index ("HHI") would increase by 84 points to 2047.6 Central Bancompany, Inc., Jefferson City, Missouri Twelve depository institutions, including the four ("Central"), a bank holding company within the largest bank holding companies in the state and the meaning of the Bank Holding Company Act ("BHC state's largest thrift institution, would continue to Act"), has applied under section 3 of the BHC Act operate in the market following consummation of this (12 U.S.C. § 1842) to acquire, through merger, South proposal. In addition, the Boone County banking County Bancshares, Inc. ("South County"), and market can be considered attractive for entry. The thereby indirectly acquire South County's subsidiary population in the market increased approximately bank, South County Bank, both of Ashland, Missouri.1 13.9 percent from 1980 to 1991, compared to an Notice of the application, affording interested per- increase of 5.5 percent for Missouri as a whole. Boone sons an opportunity to submit comments, has been County's total deposit growth rate also has exceeded published (59 Federal Register 5606 (1994)). The time for filing comments has expired, and the Board has considered the application and all comments received 3. The Boone County banking market is approximated by Boone in light of the factors set forth in section 3(c) of the County, Missouri. 4. In this context, depository institutions include commercial banks, BHC Act. savings banks, and savings associations. Market share data are based Central, with consolidated assets of approximately on calculations in which the deposits of thrift institutions are included $2.7 billion, controls 11 subsidiary banks in Missouri.2 at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant Central is the fifth largest commercial banking organi- competitors of commercial banks. See WM Bancorp, 76 Federal zation in Missouri, controlling deposits of $2.17 bil- Reserve Bulletin 788 (1990); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). lion, representing approximately 3.9 percent of total 5. Market deposit data are as of June 30, 1993. deposits in commercial banking organizations in the 6. Under the revised Department of Justice Merger Guidelines, state. South County is the 309th largest commercial 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is above 1800 is considered highly concentrated. The Justice Department has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other 1. Central proposes to merge South County Bank into Central's factors indicating anti-competitive effects) unless the post-merger subsidiary bank, Boone County National Bank of Columbia, Colum- HHI is at least 1800 and the merger increases the HHI by 200 points. bia, Missouri. Central has not yet submitted an application to the The Justice Department has stated that the higher than normal HHI Office of the Comptroller of the Currency for review of that merger thresholds for screening bank mergers for anti-competitive effects under the Bank Merger Act. implicitly recognize the competitive effect of limited purpose lenders 2. Asset and state deposit data are as of December 31, 1993. and other non-depository financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 Federal Reserve Bulletin • June 1994 comparable Metropolitan Statistical Area ("MSA") Federal Reserve Bank of St. Louis, acting pursuant to averages, growing at an annual rate of 7.6 percent from delegated authority. 1989 to 1992, compared with a 6.1 percent annual rate By order of the Board of Governors, effective for all MSA counties in Missouri. Missouri law also April 25, 1994. permits interstate bank acquisitions by bank holding companies located in adjoining states, and statewide Voting for this action:: Governors Kelley, LaWare, Lindbranching.7 In this regard, United Missouri Bank, sey, and Phillips. Absent and not voting: Chairman N.A., Kansas City, Missouri, a subsidiary of the Greenspan. state's fourth largest commercial banking organization, United Missouri Bancshares, Inc., Kansas City, WILLIAM W. WILES Secretary of the Board Missouri, entered the market de novo by establishing a branch office in 1993. CNB Bancshares, Inc. After a review of the concentration levels, the Evansville, Indiana number of competitors that would remain in the market after consummation, the attractiveness of the Order Approving the Acquisition of a Bank market for entry, and the other facts of record, the Board concludes that consummation of this proposal is CNB Bancshares, Inc., Evansville, Indiana ("CNB"), not likely to have a significantly adverse effect on a bank holding company within the meaning of the competition or concentration of banking resources in Bank Holding Company Act ("BHC Act"), has apthe Boone County banking market or in any other plied under section 3(a)(3) of the BHC Act to acquire relevant banking market. For these reasons, and based Union Bank & Trust Company, Morganfield, Kenon all the facts of record, the Board concludes that tucky ("Union Bank").1 CNB has also applied under considerations relating to competition are consistent section 5(d)(3) of the Federal Deposit Insurance Act with approval of this application. (12 U.S.C. § 1815(d)(3)) (the "FDI Act"), as amended by the Federal Deposit Insurance Corporation Im- Other Considerations provement Act of 1991 (Pub. L. No. 102-242 § 501, 105 Stat. 2236, 2388-2392 (1991)) to acquire the Mor- The financial and managerial resources and future ganfield, Kentucky branch of CNB's wholly owned prospects of Central, South County and their subsidthrift subsidiary, First Federal Savings Bank of Keniary banks are consistent with approval of this pro- tucky, Madisonville, Kentucky ("First Federal").2 posal. Considerations relating to the convenience and Section 5(d)(3) of the FDI Act requires the Board to needs of the communities to be served and the other review any proposed merger between a bank owned supervisory factors that the Board is required to by a bank holding company and a savings association, consider under section 3 of the BHC Act also are or branch of a savings association, in which the consistent with approval. resulting institution is insured by the Bank Insurance Based on the foregoing and other facts of record, the Fund, and in reviewing these proposals, to follow the Board has determined that this application should be, procedures and consider the factors set forth in section and hereby is, approved. The Board's approval of this 18(c) of the FDI Act (12 U.S.C. § 1828(c)) ("the Bank proposal is specifically conditioned on compliance Merger Act").3 This transaction also is subject to with the commitments made by Central in connection review under the Bank Merger Act by the Federal with this application. For purposes of this action, the Deposit Insurance Corporation ("FDIC"), which is commitments and conditions relied on by the Board in reaching its decision are both deemed to be conditions imposed in writing in connection with its findings and 1. CNB will acquire Union Bank by merger with and into Morgandecisions, and, as such, may be enforced in proceed- field Interim Bank, Inc., Morganfield, Kentucky, a state chartered interim bank, with Union Bank as the surviving institution. Simultaings under applicable law. neously with the acquisition of Union Bank, People Bank and Trust This transaction shall not be consummated before Company, Madisonville, Kentucky ("People Bank"), a subsidiary of the thirtieth calendar day following the effective date CNB, will merge with and into Union Bank. After these transactions, Union Bank will be renamed Citizens Bank of Kentucky, Morganfield, of this order, or later than three months after the Kentucky ("Citizens Bank"). effective date of the order, unless such period is 2. Union Bank will purchase all the assets and liabilities of this extended for good cause by the Board or by the branch simultaneously with the mergers of Union Bank and People Bank. 3. 12 U.S.C. § 1815(d)(3)(E). These factors include considerations relating to competition, financial and managerial resources, future prospects of the existing and proposed institutions, and the convenience and needs of the communities to be served. 12 U.S.C. 7. See Mo. Rev. Stat. §§ 362.915, 362.107 (1993). § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 539 the primary regulator for Union Bank. The FDIC has smallest of four depository institutions in the market, not announced its decision with respect to approval of controlling deposits of $6.7 million, representing the transaction. approximately 3.6 percent of total deposits in depos- In addition, CNB has applied under section 3(a)(4) itory institutions in Union County ("market deposof the BHC Act (12 U.S.C. § 1842(a)(4)) for First its"). Union Bank is the second largest depository Federal to acquire substantially all the assets and institution in the market, controlling deposits of $58 liabilities of CNB's wholly owned bank subsidiary, million, representing approximately 30.6 percent of CNB Bank of Kentucky, Shively, Kentucky ("CNB market deposits. Upon consummation, CNB would Bank"). remain the second largest depository organization in Notice of these applications, affording interested the Union County banking market, controlling depersons an opportunity to submit comments, has been posits of approximately $64.7 million, representing published (59 Federal Register 4073 and 9215 (1994)). approximately 34.1 percent of market deposits. The Reports on the competitive effects of the merger were Herfindahl-Hirschman Index ("HHI") would inrequested from the United States Attorney General crease 217 points to a level of 3383.6 ("Attorney General"), the Office of the Comptroller of The Board believes that a calculation of the HHI the Currency ("OCC"), and the FDIC. The time for based on total market deposits does not accurately filing comments has expired, and the Board has con- reflect the competitive effect of this proposal in the sidered the applications and all comments received in Union County banking market because of the unique light of the factors set forth in section 3(c) of the BHC characteristics of this market. In particular, the record Act, the Bank Merger Act, and section 5(d)(3) of the indicates that government deposits represent a signif- FDI Act. icant amount of the deposits held by CNB. Govern- CNB, with total consolidated assets of $2.4 billion, ment deposits may be volatile and are subject to operates in Indiana, Kentucky, and Illinois. CNB is restrictive collateral requirements that often restrict a the 19th largest depository institution in Kentucky, bank's ability to use them for making loans or providcontrolling deposits of $258.1 million, representing ing other banking products.7 The Board previously has less than 1 percent of total deposits in depository determined that individual, partnership, and corporainstitutions in the state.4 Union Bank is the 112th tion ("IPC") deposits may be the proper focus of the largest depository institution in Kentucky, controlling competitive analysis in mergers and acquisitions in deposits of approximately $58 million, representing markets in which government deposits constitute a less than 1 percent of the total deposits in depository relatively large share of total deposits.8 In this case, institutions in the state. Upon consummation of the substantially all the non-IPC deposits in the Union proposal, CNB would remain the 19th largest deposi- County banking market are government deposits, and tory institution in Kentucky, controlling deposits of non-IPC deposits represent approximately 7.4 percent $316.1 million, representing approximately 1 percent of all market deposits.9 In light of these and all the of total deposits in depository institutions in the state. facts of record, the Board concludes that the competitive effects of this proposal should be considered on Competitive Considerations the basis of IPC deposits. CNB and Union Bank compete directly in the Union County, Kentucky, banking market.5 CNB is the 6. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is above 1800 is considered to be highly concentrated. In such highly concentrated markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 4. Asset and deposit data are current as of December 31, 1993. In points. The Justice Department has informed the Board that a bank this context, depository institutions include commercial banks, sav- merger or acquisition generally will not be challenged (in the absence ings banks, and savings associations. State and market share data, of other factors indicating anti-competitive effects) unless the postexcept for data for First Federal, CNB's savings association subsid- merger HHI is at least 1800 and the merger or acquisition increases the iary, are based on calculations in which the deposits of thrift institu- HHI by at least 200 points. The Justice Department has stated that the tions are included at 50 percent. The Board previously has indicated higher than normal threshold for an increase in HHI when screening that thrift institutions have become, or have the potential to become, bank mergers and acquisitions for anti-competitive effects implicitly significant competitors of commercial banks. See WM Bancorp, 76 recognizes the competitive effect of limited-purpose lenders and other Federal Reserve Bulletin 788 (1990); National City Corporation, 70 non-depository financial entities. Federal Reserve Bulletin 743 (1984). In this case, the deposits of First 7. Government deposits are subject to an informal bidding process Federal are controlled by a commercial banking organization, and among depository institutions. would continue to be controlled by a commercial banking organization 8. See Banco Popular de Puerto Rico, 79 Federal Reserve Bulletin under this proposal. Accordingly, these deposits are included at 979 (1993). 100 percent in the calculation of the pre-consummation and pro forma 9. On average, non-IPC deposits account for approximately 7 percent market share. of total deposits in banks in the United States. Non-IPC deposits 5. This banking market is approximated by Union County, Ken- represent 47.1 percent of CNB's total deposits and 10.2 percent of tucky. Union Bank's deposits in the Union County banking market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 Federal Reserve Bulletin • June 1994 CNB is the fourth largest depository institution in The Board has received comments from the People the market, controlling IPC deposits of $3.6 million, for Equal Justice ("Protestant") alleging that the lead representing 2 percent of market deposits. Union Bank bank of CNB, Citizens National Bank of Evansville, is the second largest depository institution in the Evansville, Indiana, ("Citizens") has failed to meet market, controlling IPC deposits of $52.1 million, the credit needs of low- and moderate-income commurepresenting 29.6 percent of market deposits. Upon nities, especially communities with predominantly consummation of this proposal, CNB would become African-American populations, in a number of categothe second largest depository institution in the Union ries, including loans for home purchases, small busi- County banking market, controlling IPC deposits of ness expansion, home improvement, and non-profit $55.7 million, representing 31.6 percent of all IPC community organizations. In particular, Protestant deposits in the market. The HHI would increase 120 cites lending data to support its allegations that Citipoints to 3400. zens illegally discriminates against African-American The Board also sought comments from the Attorney borrowers and borrowers in low- and moderate-in- General, OCC, and the FDIC on the competitive come communities with predominately African-Amereffects of this proposal. The Attorney General, OCC, ican populations. Protestant also alleges that the and the FDIC have not objected to consummation of branch and automated teller machine ("ATM") locathe proposal or indicated that the proposal would have tions of Citizens do not serve the needs of inner-city any significantly adverse competitive effects in the residents of Evansville.12 Union County banking market. In its consideration of the convenience and needs Based on all the facts of record, including the factor, the Board has carefully reviewed the entire reduced change in the HHI when government deposits CRA performance record of Citizens, all comments are excluded, the Board concludes that consummation received regarding these applications, including of this proposal would not have a significantly adverse CNB's response to these comments, and all the other effect on competition or concentration of banking relevant facts of record, in light of the CRA, the resources in the Union County banking market, or any Board's regulations, and the Statement of the Federal other relevant banking market.10 Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA State- Convenience and Needs Considerations ment").13 In acting on an application to acquire a depository Record of CRA Performance institution under the BHC Act and the Bank Merger Act, the Board must consider the convenience and A. Evaluation of CRA Performance needs of the communities to be served, and take into account the records of the relevant depository institu- The Agency CRA Statement provides that a CRA tions under the Community Reinvestment Act examination is an important and often controlling (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA re- factor in the consideration of an institution's CRA quires the federal financial supervisory agencies to record, and that these reports will be given great encourage financial institutions to help meet the credit weight in the applications process.14 In this case, the needs of the local communities in which they operate, Board notes that all of CNB's subsidiary banks and consistent with the safe and sound operation of such thrifts received "outstanding" or "satisfactory" ratinstitutions. To accomplish this end, the CRA requires ings at the most recent examinations of their CRA the appropriate federal supervisory authority to "as- performance. In particular, CNB's lead bank, Citisess the institution's record of meeting the credit zens, received a "satisfactory" rating from its primary needs of its entire community, including low- and regulator, the OCC, at its most recent examination for moderate-income neighborhoods, consistent with the CRA performance as of March 29, 1993 ("1993 examsafe and sound operation of such institution," and to ination"). take that record into account in its evaluation of applications.11 12. Protestant also believes that Citizens has failed to adhere to its plan to participate in a multi-lender community development corporation. CNB denies that it committed to participate in this project but 10. The Board notes that the proposal by First Federal to acquire has requested, in accordance with its policy, that the organization substantially all the assets and liabilities of CNB Bank represents a provide specific information to enable Citizens to evaluate any request corporate reorganization and that these subsidiaries do not compete in for financial assistance. the same markets. 13. 54 Federal Register 13,742 (1989). 11. See 12 U.S.C. § 2903. 14. Id. at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 541 B. Home Mortgage Disclosure Act ("HMDA") credit needs in low- and moderate-income areas in Data and Lending Practices Evansville, Indiana. The program is designed to assist families with nontraditional credit histories and whose The Board has carefully reviewed the 1991 and 1992 income does not exceed 80 percent of the median HMDA data for Citizens, and preliminary data for family income (as defined by the Department of Hous- 1993, reported by Citizens in light of the Protestant's ing and Urban Development) to obtain home mortgage comments. In general, 1993 data indicate that Citizens financing. Under this program, eligible families also has improved its lending record of home mortgage participate in credit workshops conducted by bank loans in the low- and moderate-income and minority representatives. Although the program has been in areas it serves since 1991 and 1992.15 However, the operation for less than a full year, PMP has originated data also reflect a low percentage of loans made 71 loans, totalling approximately $2.8 million. compared to the percentage of minority residents in The bank also established a Community Resource the bank's service area and certain disparities in Center ("CRC") in 1992, which provides counseling lending to low- and moderate-income areas and minor- and training on credit-related matters to all segments ity borrowers in these areas. of the low- and moderate-income community. The The Board is concerned when an institution's record CRC is located in a low-income census tract in Evansindicates disparities in lending to minority applicants ville, Indiana, and is surrounded by several lowand believes that all banks are obligated to ensure that income census tracts. CRC activities include worktheir lending practices are based on criteria that assure shops on basic banking, home budgeting, and credit not only safe and sound lending, but also assure equal programs. CRC staff has made nearly 100 such presenaccess to credit by creditworthy applicants regardless tations to over 500 low- and moderate-income resiof race. The Board recognizes, however, that HMDA dents and community group leaders. CRC staff also data alone provide an incomplete measure of an insti- meets with residents through door-to-door visits in tution's lending in its community. The Board also areas of Vanderburgh County with the lowest per recognizes that HMDA data have limitations that capita income and the highest percentage of minority make the data an inadequate basis, absent other infor- residents. mation, for concluding that an institution has engaged Citizens also engages in other lending activities to in illegal discrimination in making lending decisions. assist in meeting the credit needs of its entire commu- Initially, the Board notes that the 1993 examination nity.16 For example, it has extended over $3.3 million indicates that there is no evidence of prohibited dis- in commercial lending and lines of credit to minoritycriminatory or other illegal practices at Citizens and owned businesses and organizations in 1993.17 In that the bank is in substantive compliance with antidis- addition, the bank is the only certified Small Business crimination laws and regulations, including the Equal Administration lender in southwestern Indiana, and to Credit Opportunity Act, the Fair Housing Act, and the date, has extended approximately 30 loans totalling Home Mortgage Disclosure Act. The bank also has $3 million under this program. Citizens is also involved developed policies that prohibit discriminatory lending in community development activities such as the Indipractices. Moreover, the record indicates that Citizens ana Community Business Credit Corporation, a prireviews all initially denied residential mortgage loan vately owned corporation that provides financing to applications to ensure compliance with fair lending small businesses in the state. The bank also provides laws. financial assistance to organizations that serve low- In addition, Citizens has taken a number of steps to and moderate-income and minority areas through its address the disparities in its HMDA data. For exam- Corporate Giving Program. ple, it has established several programs, such as the Partnership Mortgage Program ("PMP"), the Commu- C. Geographic Distribution of Loans/Branch nity Resource Center ("CRC"), Value Plus Checking, Offices and a small business unit to increase lending to African-Americans and low- and moderate-income Citizens has defined all of Vanderburgh (which inpersons in its delineated community. The PMP was cludes the city of Evansville, Indiana), Warrick, Gibestablished as a result of the bank's assessment of the 16. CNB has developed banking services such as the Value Plus Checking with special features that include lower service fees and 15. For example, the rate of origination among different racial minimum balance requirements for low- and moderate-income cusgroups showed little disparity. In 1993, origination rates for African- tomers. American and white applicants were 90.9 percent and 93.9 per- 17. CNB has created a small business lending unit that seeks to cent, respectively. In 1992, the origination percentages for African- create and expand commercial lending opportunities to minority Americans and whites were 90.9 and 94.2 percent, respectively. businesses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 Federal Reserve Bulletin • June 1994 son, Posey, and Knox counties in Indiana, and Hen- nation of Citizens, the Board believes that the efforts derson County in Kentucky, as its delineated of CNB to help meet the credit needs of all segments community, and according to the 1993 examination, of the communities it serves, including low- and has not excluded any low- and moderate-income moderate-income neighborhoods, and all other conneighborhoods from this delineation. Within these venience and needs considerations, are consistent low- and moderate-income neighborhoods, Citizens with approval of these applications.19 accepts credit applications from all segments of the The Board recognizes that the record in these applicommunity. Moreover, the institution's credit exten- cations points to areas for improvement in the CRA sions, applications, and denials demonstrate a reason- performance of Citizens, particularly in housingable penetration of all segments of its community.18 related lending. Citizens has initiated steps designed to The 1993 examination also concluded that the exist- strengthen its CRA performance and the Board exing branch offices of Citizens adequately serve its pects to see improvement in these areas. Citizens's delineated community and offer convenient banking progress in strengthening its performance in the areas hours. The bank has 25 full-service branch offices, 23 discussed in this order will be monitored by the of which have ATM facilities. The bank also has seven Federal Reserve Bank of St. Louis through reports cash dispenser machines and four ATMs at other submitted semiannually, and will be assessed in conlocations. The Lamasco branch in Evansville, is a nection with future applications to expand its depositfull-service branch serving a community with a per taking facilities. capita income of $6,994 and approximately 28 percent of residents below the poverty level. Other Considerations D. Additional Elements of CRA Performance The Board also finds that the financial and managerial resources and future prospects of CNB, First Federal, The 1993 examination concluded that Citizens has in and Citizens Bank, and the institutions to be acquired, place ascertainment and marketing programs, and as well as other supervisory factors the Board must lending and other activities that assist in meeting the consider under section 3 of the BHC Act, are consiscredit needs of minorities and low- and moderate- tent with approval. Moreover, the record in this case income neighborhoods. In this regard, Citizens ascer- shows that: tains community credit needs through regular contacts (1) The transaction will not result in the transfer of with government, civic and community individuals any federally insured depository institution's federal and groups. The bank also has policies and procedures deposit insurance from one federal deposit insurto monitor its lending and credit activities for effec- ance fund to the other; tiveness in meeting credit needs. Citizens has estab- (2) CNB and Citizens Bank (and its predecessors, lished a CRA committee composed of the bank's Union Bank and People Bank) currently meet, and board of directors. The committee has met six times in upon consummation of the proposed transaction will the past seven months to develop and strengthen its continue to meet all applicable capital standards; CRA activities. In January 1994, Citizens also hired a and full-time CRA officer, with responsibilities including, (3) Since Citizens Bank is in Kentucky and is acbut not limited to, product development and employee quiring certain assets and assuming certain liabilities training. of a branch of a Kentucky federal savings bank, the proposed transaction would comply with the Dou- E. Conclusion Regarding Convenience and Needs Factors 19. Protestant has requested that the Board hold a public meeting or The Board has carefully considered all the facts of hearing on these applications. The Board is not required to hold a public hearing on these applications under the applicable provisions of record, including the comments received in this case, the relevant banking statutes. Under its rules, the Board may, in its in reviewing the convenience and needs factor under discretion, hold a public meeting or hearing on an application to clarify the BHC Act and the Bank Merger Act. Based on a factual issues related to the application and to provide an opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The review of the entire record of these applications, Board has carefully considered Protestant's request, and the written including the most recent CRA performance exami- comments submitted by Protestant. In the Board's view, interested parties have had ample opportunity to submit and have submitted substantial written comments that have been considered by the Board. In light of the foregoing and all the facts of record, the Board has 18. The 1993 examination found that 80 percent of commercial determined that a public meeting or hearing is not necessary to clarify loans; 62 percent of installment loans; and 96 percent of home the factual record on these applications, or otherwise warranted in this mortgage, home improvement, and home equity loans extended by case. Accordingly, the request for a public meeting or hearing on these Citizens were made within the bank's delineated community. applications is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 543 glas Amendment if First Federal were a state bank in Mississippi and Louisiana.1 Deposit Guaranty is the that CNB was applying to acquire directly. See second largest commercial banking organization in 12 U.S.C. § 1815(d)(3). Mississippi, controlling approximately $3.1 billion in deposits, representing 15.1 percent of the deposits in Conclusion commercial banks in the state.2 First Columbus, with total consolidated assets of $209 million, is the 13th Based on the foregoing and other facts of record, the largest commercial banking organization in the state, Board has determined that these applications should controlling $175 million in deposits, representing less be, and hereby are, approved. The Board's approval is than 1 percent of the total deposits in commercial specifically conditioned upon compliance with all the banks in the state. Upon consummation of the procommitments made by CNB in connection with these posal, Deposit Guaranty would remain the second applications. For purposes of this action, the commit- largest commercial banking organization in Missisments and conditions relied on in reaching this deci- sippi, controlling approximately $3.3 billion in depossion shall be deemed to be conditions imposed in its, representing 16 percent of the total deposits in writing by the Board and, as such, may be enforced in commercial banks in the state. proceedings under applicable law. The banking acquisitions shall not be consummated Competitive Considerations before the thirtieth calendar day following the effective date of this order, and they shall not be consummated Deposit Guaranty and First Columbus compete directly later than three months after the effective date of this in the Lowndes County banking market.3 Deposit order, unless such period is extended for good cause Guaranty is the fifth largest depository institution4 in by the Federal Reserve Bank of St. Louis, acting the market, controlling approximately $24.8 million in pursuant to delegated authority. deposits, representing approximately 5.1 percent of the By order of the Board of Governors, effective total deposits in depository institutions in the market April 18, 1994. ("market deposits"). First Columbus is the largest depository institution in the market, controlling approx- Voting for this action:: Chairman Greenspan and Gover- imately $174.9 million in deposits, representing approxnors Kelley, La Ware, Lindsey, and Phillips. imately 35.8 percent of market deposits. Upon consummation of this proposal, Deposit Guaranty would JENNIFER J. JOHNSON become the largest depository institution in the mar- Associate Secretary of the Board ket, controlling deposits of approximately $200 million. This market would remain highly concentrated as mea- Deposit Guaranty Corp. sured by the Herfindahl-Hirschman Index ("HHI"),5 Jackson, Mississippi Order Approving the Acquisition of a Bank Holding 1. Asset data are as of December 31, 1993. Company 2. State and market data are as of June 30, 1993. 3. The Lowndes County banking market is comprised of Lowndes County, Mississippi. Deposit Guaranty Corp., Jackson, Mississippi ("De- 4. In this context, depository institutions include commercial banks, posit Guaranty"), a bank holding company within the savings banks, and savings associations. Market share data before consummation are based on calculations in which the deposits of thrift meaning of the Bank Holding Company Act ("BHC institutions are included at 50 percent. The Board previously has Act"), has applied under section 3(a)(3) of the BHC Act indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See WM Ban- (12 U.S.C. § 1842(a)(3)) to acquire at least 52 percent corp., 76 Federal Reserve Bulletin 788 (1990); National City Corpoand up to 100 percent of the voting shares of First ration, 70 Federal Reserve Bulletin 743 (1984). Columbus Financial Corporation, ("First Columbus"), 5. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the and thereby indirectly acquire First Columbus National post-merger HHI is over 1800 is considered to be highly concentrated. Bank ("Bank"), both of Columbus, Mississippi. In such highly concentrated markets, the Justice Department is likely Notice of the application, affording interested per- to challenge a merger that increases the HHI by more than 50 points. The Justice Department has informed the Board that a bank merger or sons an opportunity to submit comments, has been acquisition generally will not be challenged (in the absence of other published (59 Federal Register 5606 (1994)). Time for factors indicating anti-competitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than filing comments has expired, and the Board has consid- 200 points. The Justice Department has stated that the higher than ered the application and all comments received in light normal HHI thresholds for screening bank mergers for anti-competiof the factors set forth in section 3 of the BHC Act. tive effects implicitly recognize the competitive effect of limitedpurpose lenders and other non-depository financial entities. Upon Deposit Guaranty, with total consolidated assets of consummation of this proposal, the HHI in the Lowndes County $4.9 billion, controls two banking subsidiaries located banking market would increase by 365 points to 2736. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 Federal Reserve Bulletin • June 1994 and Deposit Guaranty would control approximately ("OCC"), and the Federal Deposit Insurance Corpo- 40.9 percent of market deposits. ration ("FDIC") on the competitive effects of this In order to mitigate the adverse competitive effects proposal. The Attorney General has indicated that, in the Lowndes County banking market that otherwise subject to Deposit Guaranty's divestitures in the would result from consummation of this proposal, Lowndes County banking market, there would be no Deposit Guaranty has committed to divest one of its significantly adverse effects on competition in any offices and one office of First Columbus in the relevant banking market. Neither the OCC nor the Lowndes County banking market with combined de- FDIC has provided any objection to consummation of posits of not less than $14 million as of June 30, 1993. this proposal or indicated that the proposal would have Deposit Guaranty has committed that these divesti- any significantly adverse effects in the Lowndes tures will be to competitively suitable acquirors whose County banking market or any relevant banking maracquisition of the divested assets and liabilities would ket in which Deposit Guaranty and First Columbus not result in a substantial lessening of competition in compete. the Lowndes County banking market.6 Based on all the facts of record, including the Although this market would remain highly concen- proposed divestitures, the relatively small increase in trated after consummation of this proposal, a number of market concentration as measured by the HHI, the considerations mitigate the competitive effects of this number of competitors that would remain in the martransaction in the Lowndes County banking market ket after consummation, and the factors indicating that after the proposed divestitures. For example, at least this market is attractive for entry, the Board concludes six competitors would remain in the market, and four of that consummation of this proposal would not have a these competitors are subsidiaries of Mississippi's four significantly adverse effect on competition or the conlargest bank holding companies, each with total assets centration of banking resources in the Lowndes exceeding $1 billion. There are also several factors County banking market or any other relevant banking indicating that the Lowndes County banking market is markets in which Deposit Guaranty and First Columattractive for entry. In this regard, Lowndes County is bus compete. the sixth most populous non-MSA county in Mississippi and the city of Columbus is the fifth largest Other Considerations non-MSA city in the state. Lowndes County ranks 16th among the state's 75 non-MSA counties in terms The Board also concludes that the financial and manof population growth between 1980 and 1990 and it agerial7 resources and future prospects of Deposit ranks seventh in total deposits. Moreover, legal barri- Guaranty and First Columbus, and their respective ers to entry into the Lowndes County banking market subsidiaries, as well as the convenience and needs of are low. Mississippi is part of the Southeast regional the communities to be served and the other supervibanking pact that allows bank holding companies in 13 sory factors that the Board must consider under secother southeastern states to acquire banks in Missis- tion 3 of the BHC Act, are consistent with approval. sippi. In addition, Mississippi allows statewide branch banking. In the past year, two of Mississippi's larger Conclusion bank holding companies have entered the Lowndes County banking market through acquisitions. Based on all the facts of record, the Board has As in other cases, the Board also sought comments determined that the application should be, and hereby from the U.S. Attorney General ("Attorney General"), the Office of the Comptroller of the Currency 7. The Board has received comments from an individual contending that Deposit Guaranty's subsidiary bank, Deposit Guaranty National 6. In this regard, Deposit Guaranty has committed to execute sales Bank ("National Bank"), has failed to fulfill its fiduciary duties as agreements prior to consummation of this proposal, and to complete executor of an estate and as trustee of two trusts. National Bank has these divestitures within 180 days of consummation of this proposal. generally denied any wrongdoing in this matter and believes that these Deposit Guaranty also has committed that in the event it is unsuc- allegations represent an isolated dispute over particular trust services. cessful in completing these divestitures within 180 days of consum- The Board carefully reviewed all facts of record, including relevant mation of the proposal, it will transfer the relevant offices to an reports of examination from the bank's primary regulator, the Office independent trustee that has been instructed to sell the offices of the Comptroller of the Currency, which has specifically reviewed promptly. See BankAmerica Corporation, 78 Federal Reserve Bulletin this dispute. The Board also has reviewed the litigation history of this 338, 340 (1992); United New Mexico Financial Corporation, 77 dispute, which has spanned almost 30 years, and notes that National Federal Reserve Bulletin 484, 485 (1991). Furthermore, Deposit Guar- Bank has not been found guilty of wrongdoing by any court decision anty has committed to submit to the Board, prior to consummation of in this matter. Moreover, resolution of the pending litigation should the acquisition, an executed trust agreement acceptable to the Board provide the commenter with an opportunity to fully press his claims stating the terms of this divestiture. The Board's action on the and obtain a remedy, if his allegations are proved and a remedy is application is expressly conditioned upon compliance with these appropriate. Based on all facts of record, the Board concludes that this commitments. matter does not warrant denial of this application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 545 is, approved. The Board's approval of this proposal is considered, but did not approve, these applications expressly conditioned upon compliance with all the (the "Shawmut Order").2 At that time, three members commitments made by Deposit Guaranty in connec- of the Board determined that the proposal did not meet tion with this application, including the divestiture the statutory factors that the Board is required to commitments discussed in this order. The commit- consider under the BHC Act in light of concerns raised ments and conditions relied on by the Board in reach- about the mortgage lending record of Shawmut under ing its decision are deemed to be conditions imposed in the Equal Credit Opportunity Act (the "ECOA") writing in connection with its findings and decisions, (15 U.S.C. § 1691 et seq.), a belief that programs to and, as such, may be enforced in proceedings under address these concerns had not been in place long applicable law. enough to permit evaluation of their adequacy, and This transaction shall not be consummated before concerns about the accuracy of data reported by the thirtieth calendar day following the effective date Shawmut under the Home Mortgage Disclosure Act of this order, or later than three months after the ("HMDA") (12 U.S.C. § 2801 et seq.). Three other effective date of this order, unless such period is members of the Board believed that Shawmut had extended for good cause by the Board or by the made significant and adequate progress in addressing Federal Reserve Bank of Minneapolis, acting pursuant concerns about its lending practices and the accuracy to delegated authority. of its HMDA reporting, and voted to approve the By order of the Board of Governors, effective proposed acquisition. Because the proposal did not April 11, 1994. receive the affirmative vote of a majority of the members of the Board, the proposal was not approved. Voting for this action:: Chairman Greenspan and Gover- The Board subsequently granted a request by Shawnors Kelley, LaWare, Lindsey, and Phillips. mut for additional time in which to present information that was being developed that Shawmut believed JENNIFER J. JOHNSON would address the Board members' concerns. Shaw- Associate Secretary of the Board mut filed substantial information and a request for reconsideration on March 1, 1994. On March 14, the Shawmut National Corporation Board published notice of the request for reconsider- Hartford, Connecticut, and Boston, ation, and afforded interested persons an opportunity Massachusetts to submit comments (59 Federal Register 11,789 (1994)). Shawmut New Hampshire Corporation Manchester, New Hampshire Request for Reconsideration Order Granting Request for Reconsideration and Shawmut's request for reconsideration is filed pursu- Approving Formation of a Bank Holding Company ant to section 262.3(k) of the Board's Rules of Proceand Acquisition of a Bank dure, which requires that a request for reconsideration provide "relevant facts that, for good cause shown, Shawmut National Corporation, Hartford, Connecti- were not previously presented to the Board."3 Shawcut, and Boston, Massachusetts ("Shawmut"), a bank mut supports its request by indicating that relevant holding company within the meaning of the Bank facts not previously considered by the Board are now Holding Company Act ("BHC Act"), has requested available that Shawmut contends address issues raised that the Board reconsider and approve its applications by the Board members who originally considered the filed under section 3 of the BHC Act applications. Information provided by Shawmut in- (12 U.S.C. § 1842) to acquire all of the voting shares cludes the results of programs initiated to improve its of New Dartmouth Bank, Manchester, New Hamprecord of lending to minorities; a settlement with the shire ("New Dartmouth"), a state-chartered guaranty Department of Justice and the Federal Trade Commissavings bank.1 On November 15, 1993, the Board This option will terminate upon consummation of the proposed 1. Shawmut New Hampshire Corporation, Manchester, New acquisition of all of the shares of New Dartmouth. Hampshire, a wholly owned subsidiary of Shawmut, also has applied 2. 80 Federal Reserve Bulletin 47 (1994). under section 3 of the BHC Act to become a bank holding company by 3. On December 17, 1993, Shawmut's request for an extension of acquiring all the voting shares of Shawmut Bank New Hampshire, time to file this request to March 1, 1994, was granted under authority Concord, New Hampshire, a de novo bank which would be merged delegated by the Board. On March 7, 1994, the Board deferred action with New Dartmouth. on the request in order to obtain additional information relevant to Shawmut also seeks Board approval to acquire an option to Shawmut's record of performance under the Community Reinvestpurchase up to 14.9 percent of the voting shares of New Dartmouth. ment Act (the "CRA") (12 U.S.C. § 2901 et seq.). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 Federal Reserve Bulletin • June 1994 sion of charges of illegal discrimination by Shawmut the programs Shawmut has in place to assure its Mortgage Company ("Mortgage Company"); pro- compliance with the ECOA and the accuracy of its grams implemented by Shawmut to ensure compliance HMDA reporting in reconsidering this proposal. with the ECO A; and steps taken by Shawmut to strengthen its managerial resources and improve com- Convenience and Needs Considerations pliance with all laws relating to the CRA, including steps to improve the accuracy of HMDA data. In acting upon an application to acquire a depository The Board received comments from approximately institution under the BHC Act, the Board must con- 30 organizations and individuals supporting the pro- sider the convenience and needs of the communities to posal. The supporters included public officials, reli- be served, and take into account the records of the gious and minority organizations, business and social relevant depository institutions under the CRA. In its service organizations, community development corpo- consideration of the convenience and needs factor, the rations and members of the public. They noted with Board has carefully reviewed the entire record of CRA approval Shawmut's efforts in such areas as technical performance of Shawmut and its subsidiary banks, and assistance for, and investments in, community devel- New Dartmouth, including information provided by opment initiatives, lending programs, support for Shawmut in its petition for reconsideration, informasmall minority businesses, and funding for first-time tion collected in the examinations of Shawmut and its home buyers. The Board also received two comments subsidiaries since the Shawmut Order, and informaopposing the reconsideration request. One alleged that tion provided by commenters. The Board also has Shawmut's subsidiary bank in Massachusetts violated reviewed the record of Shawmut under the ECOA, the ECOA in connection with a commercial loan and the programs Mortgage Company and Shawmut's application, and the other maintained that the pro- subsidiary banks have in place to insure compliance posed acquisition would reduce competition and have with the ECOA. The Board has reviewed this inforan adverse effect on customer service. The time for mation in the context of the CRA, and the Statement filing comments has expired, and the Board has con- of the Federal Financial Supervisory Agencies Residered all comments received in light of the factors set garding the Community Reinvestment Act.4 forth in section 3(c) of the BHC Act. The Board has carefully considered the entire A. Results of Steps to Improve Record of record of these applications, including the information Lending to Minority/Low-Income Borrowers in the comments received and the submissions by Shawmut. In this regard, the Board believes that the Shawmut has taken a number of substantial steps to request for reconsideration raises new relevant facts improve its record of lending to minority and low- and not presented to the Board at the time of the Shawmut moderate-income borrowers, and to address concerns Order. These facts include lending data demonstrating that it may have engaged in discriminatory lending the effectiveness of Shawmut's initiatives to improve practices in the past. These steps include new lending its record of lending to minority and low- and moder- programs, outreach and marketing programs, and ate-income borrowers, resolution with the Department steps to monitor the fairness and accuracy of reporting of Justice and the Federal Trade Commission of the credit decisions. allegations involving discriminatory lending practices Special Programs and Initiatives. Shawmut initiated by Mortgage Company, and the results of Shawmut's a mortgage loan program in 1993 designed to attract substantial efforts to improve the accuracy of its mortgage applications from minority and low- and HMDA data and the responsiveness of its manage- moderate-income individuals. This initiative included ment to CRA-related issues. The Board has also a commitment of $50 million in mortgages offering considered the satisfactory finding in fair lending re- more flexible underwriting criteria, such as lower views conducted at Shawmut's subsidiary banks and downpayment requirements, modifications to formu- Mortgage Company by the Office of the Comptroller of las for calculating income, and less restrictive underthe Currency ("OCC") after the Shawmut Order, as writing ratios. Shawmut increased this commitment by well as the results of a review by the Federal Reserve $35 million in November 1993, and increased it again Bank of Boston (the "Reserve Bank") of Mortgage in February 1994 by an additional $100 million, for a Company's HMDA data. Based on all facts of record, total of $185 million. As of December 31, 1993, Shawthe Board concludes that sufficient new relevant facts mut had closed 396 portfolio mortgage loans totalling have been presented that, in the public interest, war- $37.3 million under this initiative, with an additional 99 rant reconsideration of the Shawmut Order. As discussed more fully below, the Board has paid particular attention to the concerns expressed earlier regarding 4. 54 Federal Register 13,742 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 547 loans totalling $9.2 million in process.5 Shawmut's HMDA data also indicate that from 1991 to 1993, initiative also includes an expanded affirmative mar- there has been an increase in the number of loan keting program. In 1993, it held 285 "First Time applications received by Mortgage Company from Homebuyer Seminars," with 190 of these seminars African-Americans and Hispanics in the Boston MSA, targeted in part to low- and moderate-income census as well as an increase in the number of originations to tracts. Shawmut also has increased the frequency of those groups. For example, from 1991 to 1993, the advertisements for mortgage loans on all the commu- number of loan applications from African-Americans nity-based radio stations and in publications used as increased from 216 to 369, and the applications from part of Shawmut's CRA marketing plan.6 In 1993, Hispanics increased from 73 to 168. The number of Mortgage Company, in collaboration with Shawmut's originations made during that period to Africansubsidiary banks, established Mortgage Community Americans increased from 118 to 277, and the number Advisory Committees in Massachusetts and Connect- of originations to Hispanics increased from 36 to 134. icut to formalize communication between Shawmut's Similar improvements were seen in applications from officials and community representatives.7 and originations to minorities in the 23 MSAs in Additional steps to increase lending to minorities Shawmut's banking community.8 and low- and moderate-income individuals have in- These data also compare favorably to Shawmut's cluded an incentive compensation package for em- share of the market for housing-related loans. For ployees to encourage loan originations under Shaw- example, Mortgage Company's 1992 market share mut's special mortgage programs. In addition, of applications from and originations to African- Shawmut's subsidiary bank in Massachusetts opened Americans and Hispanics in the 23 MSAs was 11 a branch in the predominantly minority community of percent and 10.7 percent, respectively, while its mar- Roxbury, Massachusetts, in December 1993. The bank ket share for nonminority borrowers was 5 percent. has assigned an "urban business banker" to the The preliminary 1993 HMDA data also show an branch to serve businesses in this area, and Mortgage increase in the number of loan applications and origi- Company has opened a mortgage sales office in the nations by Mortgage Company in low- and moderatebranch. income census tracts in the 23 MSAs in Shawmut's HMD A Data. The preliminary HMDA data submit- banking community. For example, from 1991 to 1993, ted by Mortgage Company for 1993 indicate substan- the number of loan applications generated from lowtial reductions in the denial rates for home mortgage and moderate-income census tracts increased from loans for minority applicants when compared to data 1315 to 2677, and originations made to individuals for 1991. For example, the denial rates for home residing in these tracts increased from 795 to 2090. purchase and refinancing loan applications in the Boston metropolitan statistical area ("MSA") were re- B. Past Allegations of Discrimination/ duced for African-Americans from 30.1 percent Compliance with ECOA (1991) to 18.2 percent (1993), and for Hispanics from 27.4 percent (1991) to 13.1 percent (1993). In the 23 In December 1992, the Board made a referral to the MS As served by Mortgage Company, denial rates Department of Justice regarding the lending practices were reduced from 32.3 percent (1991) to 17.9 percent of Mortgage Company based on a study of home (1993) for African-Americans, and from 28.5 percent mortgage lending data conducted by the Reserve (1991) to 13.4 percent (1993) for Hispanics. Bank. The Board was concerned that these data appeared to indicate discriminatory treatment of minorities in mortgage lending in Boston, Massachusetts, in violation of fair lending laws, including the ECOA. In 5. Shawmut implements its mortgage initiative in part by commit- light of this referral, the Board believed that this ting funds to local programs. For example, under the new Bridgeport matter raised a most serious concern and precluded Affordable Mortgage Program, developed in conjunction with a comapproval of the applications without strong evidence munity group, Mortgage Company proposes to make $2 million of Shawmut's corporate-wide mortgage lending initiative available to that Shawmut has programs in place to ensure comindividuals in Bridgeport, Connecticut, who earn less than 80 percent pliance with the ECOA and has a demonstrated record of median state income. The loans would offer flexible underwriting that the programs are adequate and working well. criteria and favorable workout policies if a borrower had trouble making payments on the mortgage. In addition, Shawmut has pledged to support loan counseling offered by the community group in both Boston and Bridgeport. 8. For example, the number of mortgage applications from African- 6. This included four African-American radio stations, six Hispanic Americans increased from 483 in 1991 to 826 in 1993, and the number radio stations, six African-American publications, and other publica- of originations increased from 256 in 1991 to 617 in 1993. The number tions directed at minority and ethnic neighborhoods. of mortgage applications from Hispanics increased from 288 in 1991 to 7. Each committee includes six representatives from community 589 in 1993, and the number of originations increased from 166 in 1991 organizations and meets quarterly. to 472 in 1993. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 Federal Reserve Bulletin • June 1994 After the Shawmut Order, Mortgage Company en- Connecticut and Shawmut Massachusetts.12 During tered into a consent decree, effective December 13, 1993, these Mortgage Review Committees approved 1993, with the Department of Justice and the Federal 54 percent of the 753 applications reviewed, providing Trade Commission (the "Consent Decree") to resolve for home mortgages totaling approximately $36.9 milthe allegations that Mortgage Company engaged in lion. In addition, Mortgage Company has designated lending practices that discriminated on the basis of an independent advocate, who looks into complaints race and national origin.9 This settlement did not result by applicants who are denied credit or who are enin any finding that Mortgage Company had violated the countering difficulties in the application process.13 ECO A. In connection with the settlement, the Depart- Shawmut also retained a research firm in 1993 to ment of Justice stated that Mortgage Company's fair conduct a "mystery shopper" program to test how lending compliance program "is now working well and customers were treated in the mortgage application is adequate to ensure the lender's compliance with the process.14 fair lending provisions of the Equal Credit Opportunity Shawmut amended its credit policy bulletins and Act and the Fair Housing Act."10 At the same time, manuals in 1992 to provide additional guidance and Mortgage Company agreed to establish a compensa- instruction to lending officers on compliance with the tion fund of $960,000 to provide funds to minority ECOA. From May through August 1992, intensified individuals denied credit by Mortgage Company from training on the ECOA was provided to all commercial January 1990 through October 1992." The Consent lending personnel, and an ECOA course has been Decree specifically notes that the agreed settlement offered since the beginning of 1993.15 Shawmut also amount contains no punitive sanctions in light of the has customized a computer-assisted CRA training self-evaluative and immediate self-corrective steps un- course, which has been completed by more than 2,800 dertaken by Mortgage Company. Shawmut employees. According to Shawmut, con- Since the Board first considered Shawmut's pro- sumer and commercial bank CRA training courses and posed acquisition of New Dartmouth, Shawmut's two mortgage specialist training, including integrated subsidiary banks, Shawmut Bank Connecticut, N.A., ECOA and Regulation B training, have been attended Hartford, Connecticut ("Shawmut Connecticut"), and by approximately 3,500 employees, including all mort- Shawmut Bank, N.A., ("Shawmut Massachusetts"), gage originators at Mortgage Company.16 have undergone concurrent fair lending and consumer In addition, in November 1993, Shawmut's subsidcompliance examinations conducted by the OCC. iary banks adopted corporate-wide Fair Lending Pol- Mortgage Company has also undergone a fair lending icies which include a fair lending mission statement examination by the OCC. The examinations found that and minimum action standards for each business line. all of these Shawmut subsidiaries were in compliance Shawmut recently established new training programs with the substantive provisions of antidiscrimination and expanded existing training programs to familiarize laws and regulations, and revealed no evidence of personnel more fully with fair lending issues and illegal discrimination or prescreening of loan appli- concerns. During 1994, Shawmut plans to extend cants. additional fair lending training programs to all person- To address its responsibilities for assuring fair lend- nel at Shawmut subsidiaries who have customer coning under the ECO A, Mortgage Company has initiated a number of steps to implement a comprehensive fair lending compliance program. In this regard, the com- 12. In November 1993, Mortgage Company expanded the scope of the committees' review to include all applicants with incomes equal to pany established Mortgage Review Committees in less than 115 percent of median income, and the committees were November 1991 to review all potential denials of combined in December 1993. Shawmut indicates that it also has adopted a second review process for its small-business, home-equity minority mortgage applications for eligibility under and installment-finance lending areas. special mortgage programs developed by Shawmut 13. From April through December 1993, the advocate received 372 telephone inquiries, with 54 callers receiving in-depth, direct mortgage counseling and 72.2 percent of the 54 callers obtaining mortgage loans. 14. The purpose of the program was to detect any improper discrimination occurring during the application process. Shawmut 9. United States v. Shawmut Mortgage Company, Civ. No. intends to expand this program in 1994 to encompass additional 3:93CV-2453 (D. Conn.) (Consent Decree, filed December 13, 1993). business lines, including consumer, residential and small business 10. Consent Decree at 4. lending, and will evaluate treatment by age and gender in addition to 11. This fund is to be administered at the direction of the Depart- race. ment of Justice. Mortgage Company also agreed to continue a 15. Shawmut indicates that 2,200 Shawmut employees have atcomprehensive fair lending compliance program, as well as additional tended these courses from May 1992 through June 1993. programs implemented by Mortgage Company to increase loans to 16. Shawmut represents that all supervisors, managers and mortminorities, during the three-year duration of the Consent Decree. The gage staff have completed diversity training workshops. Shawmut also Consent Decree contains record-keeping and reporting requirements represents that it conducts extensive testing to determine employees' to allow the Department of Justice to monitor Mortgage Company's knowledge of fair lending laws, and to detect any evidence of potential compliance. illegal or discriminatory credit practices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 549 tact or who may be involved in lending decisions. An D. Other Aspects of CRA Performance outside consultant has been working with Mortgage Company in its review of all lending policies and Shawmut's subsidiaries also participate in projects procedures to insure conformity with regulatory obli- that support community development activities, and gations and with Shawmut's fair lending mission state- offer products that meet the credit and banking needs ment. of their communities.18 Community Development Activities. Mortgage C. HMDA Data Accuracy Company and Shawmut Massachusetts have participated in various programs sponsored by the Massa- In the November statements, members of the Board chusetts Housing Finance Agency (the "MHFA"), expressed concern that inaccuracies in the HMDA closing more than $36.7 million in loans in 1993 under data reported by Shawmut, as well as the structure of several different MHFA-sponsored programs designed its mortgage lending operation, indicated inattention to provide affordable housing in Massachusetts. In by management to important legal requirements that addition, Shawmut Massachusetts has loaned $10 milapplied to the organization. Shawmut has since taken lion to the Massachusetts Housing Investment Corpoactions to correct inaccuracies in its 1993 data and has ration for the purchase, rehabilitation and new coninitiated organizational changes to prevent errors from struction of rental, cooperative and single-room occurring in the future. occupancy housing, and, in 1993, the bank committed an additional $4.3 million in future equity investments Shawmut has instituted an automated process to through the 1993-1994 equity investment pool created assist in collecting, processing and reporting accurate by the Massachusetts Housing Equity Fund, Inc. HMDA data. Shawmut also has implemented new procedures providing for the review of all HMDA data Shawmut Massachusetts also participates in stateprior to submission to regulatory agencies, and is in wide economic development activities. The bank the process of developing revised procedures and helped design and develop the Massachusetts Minority training programs designed to reduce initial coding and Enterprise Investment Corporation, which was estabinput errors. On site reviews by the Reserve Bank lished to provide access to financing for small and indicate that Shawmut's efforts have decreased the minority-owned businesses in Massachusetts.19 In aderror rates in important areas of the 1993 HMDA data, dition, the bank is a member of the Massachusetts and Shawmut has taken steps that should further Business Development Corporation and has made a improve accuracy. commitment to provide approximately $3.9 million in Shawmut also has made a number of key changes in the form of unsecured, non-amortizing five-year loans personnel and in the management and structure of to cover that organization's borrowing needs.20 compliance and mortgage lending operations to im- In 1992, Shawmut Connecticut committed $250 milprove overall compliance with relevant statutes such lion to the Connecticut Development Authority's Preas the HMDA. At Shawmut, all compliance units have ferred Lender program, which is designed to create been reorganized to report to one individual, and new jobs and keep existing jobs in Connecticut by responsibility for overall compliance has been as- guaranteeing loans made to businesses that otherwise sumed by the Audit Committee of Shawmut's board of would not have access to credit.21 Through Mortgage directors.17 Mortgage Company has been established Company, Shawmut is also a participant in the Conas a direct subsidiary of Shawmut Connecticut. Re- necticut Housing Finance Authority's below-market sponsibility for its operations have been centralized rate loan program, underwriting 79 mortgage loans under its Chief Operations Officer to ensure consistency in the application of regulatory requirements and corporate policies. Compliance, quality control and 18. One commenter believes that Shawmut Connecticut has become fair lending functions have been consolidated into a insensitive to customers needs. The OCC's examination of Shawmut Connecticut noted that the bank has established ongoing and meansingle compliance group reporting to a Group Compliingful contact with a wide range of community organizations, has ance Manager. developed a formalized program to ascertain the credit needs of its communities, and has developed or modified existing products in response to these ascertainment efforts. Based on all facts of record, the Board concludes that these comments do not warrant denial of these applications. 17. Ongoing oversight over compliance policies, procedures, and 19. The bank has made an investment of $1 million in capital and, as testing is provided by Group Compliance Managers who are organized agent bank, has provided $3 million in committed lines of credit. by business lines. Shawmut intends to hire a Director of Compliance 20. The bank has approximately $1.1 million in five-year loans and Compliance Specialists who will be organized along functional outstanding to this organization, and has an additional $315,000 outlines, providing assistance to appropriate line or staff areas when standing under a $1 million participation in a revolving line of credit. changes in laws, regulations, products or systems occur or are being 21. As of December 31, 1993, the bank had closed 17 loans totalling contemplated. more than $30.7 million under this program. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 Federal Reserve Bulletin • June 1994 totalling approximately $7.2 million in 1993. Mortgage Dartmouth's board of directors to address the specific Company also has been involved in activities in Rhode issues raised in the CRA performance examination. Island, approving 189 mortgage loans totaling approx- The Board also notes that the FDIC has reviewed and imately $15.4 million in 1993 under programs spon- approved the merger of Shawmut Bank New Hampsored by the Rhode Island Housing Mortgage Finance shire with New Dartmouth under the Bank Merger Corporation. Act. 12 U.S.C. § 1828(c). Special Banking Products. Shawmut's subsidiary banks have introduced Basic Checking and Basic Conclusions Regarding the Convenience and Needs Savings for low-income customers with limited bank- Factor ing needs. The banks have developed a "Basic Banking" brochure to provide information on their low-cost The Board has carefully considered the entire record, accounts, have established a toll-free customer infor- including the public comment in this case, in reviewing mation line which is available 24 hours a day and is the convenience and needs factor under the BHC Act. accessible to hearing-impaired and Spanish-speaking As indicated in the preceding discussion, Shawmut has customers, and have established a Consumer Credit made substantial progress in improving its overall Counseling Unit to provide assistance to customers record of CRA performance, including implementation having financial difficulty.22 of significant new programs and initiation of the types Shawmut established a small business banking group of managerial reforms that should continue to improve in the first quarter of 1993 to focus on the expansion of its compliance with all laws relating to the CRA, services to small business owners. Collectively during including the reporting requirements under the 1993, urban business bankers and community business HMDA. The Board believes that the record shows that bankers in the small business banking group approved Shawmut has demonstrated a record of commitment to 1,075 loans totalling approximately $64.6 million. In serving the convenience and needs of its entire comaddition, during 1993, Shawmut made 23.4 percent of munity, including low- and moderate-income neighall business loans, including loans made through the borhoods. For these reasons, and on the basis of all Small Business Administration or through state- and facts of record, the Board concludes that the CRA locally sponsored small business programs, to busi- performance record of Shawmut is, on balance, connesses in low- and moderate-income census tracts. sistent with approval. Shawmut Connecticut and Shawmut Massachusetts The Board expects Shawmut to continue to improve have been examined for CRA performance by their its record of lending in its communities, particularly primary regulator, the OCC, since the Shawmut Or- with respect to minority and low- to moderate-income der. Both banks received "satisfactory" ratings as of areas, and to comply with all commitments regarding December 31, 1993. its activities related to CRA and fair lending law The Board notes that New Dartmouth received a compliance given in connection with these applica- "needs to improve" rating from the Federal Deposit tions and the request for reconsideration.24 In this Insurance Corporation (the "FDIC") at its most re- regard, the Board and Reserve Bank will monitor cent examination for CRA performance as of Janu- Shawmut's progress in implementing the CRA proary 25, 1993.23 In connection with these applications, grams and policies described in this Order, and as a Shawmut has committed to implement its CRA pro- condition of the Board's action in this case, any grams and policies, including all of its special lending reports on such progress prepared under the terms of initiatives, at the acquired New Dartmouth branches. the Consent Decree must be provided to the Board and In addition, Shawmut has committed to ensure full compliance with the action plan adopted by New 24. A commenter has filed suit against Shawmut, alleging, among other things, that the bank failed to provide timely written notices during the processing of her loan application and upon the decision to deny the loan; required that the commenter's husband co-sign the 22. During 1993, the unit reviewed 764 cases and restructured 440 loan; insisted on communicating with her husband even though she customer accounts. was the loan applicant; and denied the loan because of the applicant's 23. The American Friends Service Committee, Concord, New gender. Shawmut has denied any wrongdoing in its dealings with this Hampshire commented on New Dartmouth's record of performance individual, and contends that these allegations represent an isolated under the CRA, and the fact that New Dartmouth was being sold at a dispute over a particular loan transaction. The Board has considered substantial profit soon after it acquired three failed New Hampshire these comments in light of the most recent examination information, banks in an assisted transaction arranged by the FDIC. As explained information on the allegations raised by the pending lawsuit, and above, Shawmut has committed to improve the CRA performance information provided by the bank's primary regulator, the OCC. The record of New Dartmouth. Moreover, the shareholders benefiting Board also has considered Shawmut's efforts to ensure compliance from the sale of New Dartmouth were the sole bidders for that bank in with the ECOA as discussed in this order, and has considered that the 1991, and their bid was approved by the FDIC under applicable law. pending civil action, which is in its early stages, will provide the Based on these and all facts of record, the Board concludes that these commenter with an opportunity to fully press her claims and obtain a comments do not warrant denial of these applications. remedy, if appropriate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 551 the Reserve Bank simultaneously with their submis- remaining in the market, the relatively small increase sion to the Department of Justice. in market share and market concentration in the market, and all other factors of record, the Board Other Factors concludes that consummation of the proposal would not have a significantly adverse effect on competition Shawmut, with consolidated assets of $27.4 billion,25 in any relevant banking market.31 controls banking subsidiaries in Connecticut and Mas- The Board also has concluded that the financial and sachusetts. Shawmut also provides banking services managerial resources and future prospects of Shawin Rhode Island through its banking subsidiary in mut and its subsidiary banks and New Dartmouth, and Connecticut. New Dartmouth is the second largest all other supervisory factors that the Board must depository institution in New Hampshire, controlling consider under section 3 of the BHC Act, are consisdeposits of $1.5 billion,26 representing approximately tent with approval of this proposal. 11.6 percent of total deposits in depository institutions in the state. Shawmut does not currently control any Conclusion depository institutions located in New Hampshire, and upon consummation of this proposal, would become Based on the foregoing and other facts of record, the the second largest depository institution in New Board has determined that the applications should be, Hampshire.27 and hereby are, approved. The Board's approval is Shawmut and New Dartmouth compete directly in specifically conditioned upon compliance with all the the Boston, Massachusetts, banking market.28 Upon commitments made by Shawmut in connection with consummation of this proposal, this market would these applications and the request for reconsideration, remain unconcentrated as measured by the Herfind- and with the conditions referred to in this order. This ahl-Hirschman Index ("HHI").29 After considering approval is further subject to Shawmut obtaining all the competition offered by other depository institu- necessary approvals under applicable state laws. For tions in the market,30 the number of competitors purposes of this action, the commitments and conditions relied on in reaching this decision shall be deemed to be conditions imposed in writing by the 25. Asset data are as of December 31, 1993. Board and, as such, may be enforced in proceedings 26. State and market deposit data are as of June 30, 1993, and include all mergers and acquisitions consummated prior to April 1994. under applicable law. 27. Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)), the Douglas The acquisition of New Dartmouth shall not be Amendment, prohibits a bank holding company from acquiring a bank located outside of the bank holding company's home state "unless the consummated before the thirtieth calendar day followacquisition of ... a State bank by an out-of-State bank holding ing the effective date of this order, or later than three company is specifically authorized by the statute laws of the State in months after the effective date of this order, unless which such bank is located, by language to that effect and not merely by implication." The Board previously has determined that, for such period is extended for good cause by the Reserve purposes of the Douglas Amendment, Shawmut is located in Massa- Bank, acting pursuant to delegated authority. chusetts and that the interstate banking statute of New Hampshire permits a Massachusetts bank holding company to acquire banking By order of the Board of Governors, effective organizations in New Hampshire. See Shawmut National Corpora- April 28, 1994. tion, 74 Federal Reserve Bulletin 182 (1988); and Merrimack Bancorp, Inc., 74 Federal Reserve Bulletin 386 (1988). In addition, the New Hampshire Bank Commissioner has approved the proposed acquisi- Voting for this action:: Chairman Greenspan, and Govertion. In light of all facts of record, the Board concludes that approval nors Kelley, Lindsey, and Phillips. Abstaining from this of this proposal is not prohibited by the Douglas Amendment. action: Governor La Ware. 28. The Boston, Massachusetts, banking market includes the Boston RMA, plus the towns of Greenville, Lyndeboro, Mason, and New JENNIFER J. JOHNSON Ipswich, all in New Hampshire. Associate Secretary of the Board 29. Upon consummation of this transaction, the HHI would increase by 7 points to 827. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is below 1000 is considered unconcen- competitors of commercial banks. See WM Bancorp, 76 Federal trated. The Department of Justice has informed the Board that a bank Reserve Bulletin 788 (1990); National City Corporation, 70 Federal merger or acquisition generally will not be challenged (in the absence of Reserve Bulletin 743 (1984). Because New Dartmouth will be affiliated other factors indicating anticompetitive effects) unless the post-merger with a commercial banking organization upon consummation of this HHI is at least 1800 and the merger increases the HHI by more than 200 proposal, the deposits of New Dartmouth are included at 100 percent points. The Department of Justice has stated that the higher than in the calculation of the pro forma market share. See Norwest normal HHI thresholds for screening bank mergers for anticompetitive Corporation, 78 Federal Reserve Bulletin 452 (1992); First Banks, effects implicitly recognize the competitive effect of limited-purpose Inc., 76 Federal Reserve Bulletin 669, 670 n.9 (1990). lenders and other non-depository financial institutions. 31. The Board has received a comment from an individual main- 30. In this context, depository institutions include commercial taining that New England requires more banking competition, not banks, savings banks, and savings associations. Market share data are further consolidation. For the reasons discussed above, the Board based on calculations in which the deposits of thrift institutions are believes that there are no significantly adverse competitive effects included at 50 percent. The Board previously has indicated that thrift resulting from this proposal, and that these comments do not warrant institutions have become, or have the potential to become, significant a denial of the applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 Federal Reserve Bulletin • June 1994 Orders Issued Under Section 4 of the Bank trade in the proposed derivative instruments for its Holding Company Act own account for any purpose, and would not trade in the physical commodities themselves, except when Caisse Nationale de Credit Agricole necessary to assist in the orderly resolution of an Paris, France account.2 Company would provide the proposed FCM services only to institutional customers within the Order Approving an Application to Engage in meaning of section 225.2(g) of Regulation Y.3 Com- Futures Commission Merchant Activities pany would not provide such services to retail brokerage customers, locals, or market makers. Caisse Nationale de Credit Agricole, Paris, France Notice of the application, affording interested per- ("Applicant"), a foreign bank subject to the provi- sons an opportunity to submit comments, has been sions of the Bank Holding Company Act ("BHC published (58 Federal Register 26,548 (1993)). The Act"), has applied under section 4(c)(8) of the BHC time for filing comments has expired, and the Board Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of the has considered the application and all comments re- Board's Regulation Y (12 C.F.R. 225.23), to provide ceived in light of the public interest factors set forth in futures commission merchant ("FCM") execution, section 4(c)(8) of the BHC Act. clearance, and advisory services to unaffiliated cus- Applicant is a cooperative bank organized under the tomers with respect to futures and options on futures laws of France.4 In the United States, Applicant operon non-financial commodities.1 Company would not ates branches in Chicago, Illinois, and New York, New York, and a representative office in San Francisco, California.5 Company is an FCM registered with the 1. Applicant proposes to conduct these FCM activities through its Commodity Futures Trading Commission ("CFTC"), wholly owned subsidiary, Credit Agricole Futures, Inc., Chicago, Illinois ("Company"), and would initially broker futures and options and a member of the National Futures Association on futures on cocoa, coffee, corn, crude oil, gasoline, heating oil, ("NFA"). Accordingly, Company is subject to the natural gas, soybeans, soybean meal, soybean oil, sugar, and wheat. recordkeeping, reporting, fiduciary standards, and A complete list of the proposed contracts is set forth in the Appendix. Applicant must provide at least 20 days prior written notice to the other requirements of the Commodity Exchange Act Federal Reserve System before: (7 U.S.C. § 1 et seq.), the CFTC, and the NFA.6 (i) Engaging in FCM activitieswith respect to additional exchangetraded derivative contracts on agricultural, energy, or non-precious metal commodities (unless the Board has approved the contracts for any other bank holding company under the BHC Act) to assure that 2. In those circumstances when a customer defaults on a contract such contracts are comparable to previously approved contracts; or after the contract expires and Company is required to make or take (ii) Becoming a clearing or non-clearing member of any commodi- delivery of the underlying commodity, or where Company exercises ties exchange that previously has been reviewed and approved by its rights to liquidate a customer's account, Company is permitted to the Board under the BHC Act. Applicant must obtain Board take those actions necessary to mitigate its damages, including acting approval before becoming a clearing or non-clearing member of any for its own account in retendering or redelivering the commodity, commodities exchange that has not been reviewed and approved by entering into an exchange-for-physical transaction, or entering into an the Board under the BHC Act, including, as of the effective date of offsetting transaction in the cash market, provided these or other this order, the Coffee, Sugar and Cocoa Exchange. appropriate actions are taken as soon as commercially practicable. Company may conduct the proposed FCM activities through omni- 3. See 12 C.F.R. 225.2(g). Company's customer base would include bus trading accounts established in its own name with clearing mutual fund and commodity pool customers. None of Company's members of exchanges on which Company would not itself be a commodity pool customers would be owned or sponsored by, or clearing member. See Northern Trust Corporation, 79 Federal Re- otherwise affiliated with, Applicant. Neither Applicant nor Company serve Bulletin 723, 724 (1993) ("Northern Trust"). Applicant has will act as a commodity pool operator without prior Board approval. committed that, with respect to its omnibus account customers, Company will apply its standard credit approval procedures to its Company will employ the same credit-approval and risk-management commodity pool customers. Applicant has committed to provide the procedures developed for its executing and clearing activities. Federal Reserve System with prior notice of any material change in Applicant also proposes to provide execution-only and clearing- the characteristics of Company's customer base. only services to customers pursuant to customer agreements and 4. Applicant, with total consolidated assets equivalent to approxi- "give-up agreements" that would afford the clearing FCM the right to mately $252 billion, supports and coordinates the operations of 85 refuse to clear customer trades that the clearing FCM reasonably regional mutual credit cooperatives and 2,952 local credit cooperadeems unsuitable in light of market conditions or a customer's tives. Applicant, together with its affiliated regional and local credit financial situation or objectives. These activities have been approved cooperatives, comprise the Credit Agricole Group ("CAG"). The by the Board. See Northern Trust; The Sakura Bank, Limited, 79 CAG, with total consolidated assets equivalent to approximately Federal Reserve Bulletin 728 (1993) ("Sakura")-, J. P. Morgan & Co. $305 billion, is the eighth largest banking organization in the world, Incorporated, 80 Federal Reserve Bulletin 151 (1994) ("Morgan"). and the largest banking organization in France. Asset and ranking data Company would conduct its proposed execution-only and clearing- are as of December 31,1992, and employ exchange rates then in effect. only activities in a manner consistent with Northern Trust, Sakura, 5. Under section 8(a) of the International Banking Act and Morgan. In particular, Applicant has committed that Company (12 U.S.C. § 3106(a)), a foreign bank that operates a branch, agency, will not serve as the primary or qualifying clearing firm for any or commercial-lending-company subsidiary in the United States is unaffiliated parties. Applicant also has committed that, in conducting subject to the BHC Act as if it were a bank holding company. its execution-only activities, Company will observe credit review 6. Company is a clearing member of the Chicago Mercantile procedures consistent with those approved in Morgan. Exchange and the Chicago Board of Trade, and is currently engaged In addition, Company would provide certain custodial services to in executing and clearing on major commodities exchanges futures mutual funds for all types of futures contracts and options on futures and options on futures on financial commodities and certain broadcontracts. See 12 C.F.R. 225.125®. based and widely traded stock and bond indices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 553 The Board has previously determined that providing could reasonably be expected to produce public ben- FCM execution, clearance, and advisory services with efits that would outweigh the possible adverse effects respect to nonfinancial commodity derivatives are under the proper incident to banking standard of activities closely related to banking within the meaning section 4(c)(8) of the BHC Act. of section 4 of the BHC Act, and are, therefore, Based on the foregoing and all the facts of record, permissible activities for bank holding companies.7 the Board has determined to, and hereby does, ap- In order to approve this application, the Board must prove the application subject to all the terms and determine that the performance of the proposed activ- conditions set forth in this order, and in the above ities by Applicant can reasonably be expected to noted Board regulations and orders that relate to these produce public benefits that would outweigh possible activities. The Board's determination is also subject to adverse effects under the proper incident to banking all of the terms and conditions set forth in the Board's standard of section 4(c)(8) of the BHC Act. In this Regulation Y, including those in sections 225.4(d) and regard, in every case under section 4 of the BHC Act, 225.23(b), and to the Board's authority to require the Board must consider the financial condition and modification or termination of the activities of a bank resources of the applicant and its subsidiaries and the holding company or any of its subsidiaries as the effect of the proposal on these resources.8 Based on Board finds necessary to assure compliance with, and the facts of this case, the Board concludes that the to prevent evasion of, the provisions of the BHC Act, financial considerations are consistent with approval and the Board's regulations and orders issued thereof this application. The managerial resources of Ap- under. The Board's decision is specifically conditioned plicant also are consistent with approval. on compliance with all of the commitments made in The Board expects that the de novo entry of Appli- this application, including the commitments discussed cant into the market for the proposed services in the in this order and the conditions set forth in this order United States would provide added convenience to and in the above noted Board regulations and orders. Applicant's customers, and would increase the level of These commitments and conditions shall be deemed to competition among existing providers of these ser- be conditions imposed in writing by the Board in vices. To address the potential adverse effects of the connection with its findings and decisions, and may be proposed activities, Applicant has committed to con- enforced in proceedings under applicable law. duct the proposed activities subject to the same rules This transaction shall not be consummated later and procedures imposed by the Board on FCM activi- than three months after the effective date of this order, ties in derivatives of financial commodities.9 In addi- unless such period is extended for good cause by the tion, in order to minimize risks associated with the Board or by the Federal Reserve Bank of New York, delivery of non-financial commodities, Applicant has pursuant to delegated authority. committed to take a number of steps in the event one of By order of the Board of Governors, effective Company's customers has an open position in a con- April 18, 1994. tract after the contract has expired, and the customer is unable or unwilling to make or take delivery.10 Voting for this action: Chairman Greenspan and Governors Based on the commitments made by Applicant Kelley, La Ware, Lindsey, and Phillips. regarding its conduct of the proposed activities, the limitations on the activities noted in this order, and all JENNIFER J. JOHNSON Associate Secretary of the Board the facts of record, the Board has determined that the performance of the proposed activities by Applicant Appendix 7. See J.P. Morgan & Co. Incorporated, 80 Federal Reserve Bulletin 151 (1994). Coffee, Sugar and Cocoa Exchange: 8. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Cocoa futures Bulletin 155 (1987). Options on cocoa futures 9. See 12 C.F.R. 225.25(b)(18). Applicant also has committed that Company will not enter into any impermissible tying arrangements Coffee "C" futures with any lending affiliates, and that all customer trading positions of Options on cocoa futures Company will be marked to market at least daily. Sugar no. 11 futures 10. Among the steps Applicant will take are: (1) Retendering the commodity; Options on Sugar no. 11 futures (2) Offsetting the customer's open position through an exchangefor-physical transaction; (3) Offsetting the commodity in the cash market; and Chicago Board of Trade: (4) Seeking to avoid delivery through some other mechanism. Corn futures See Bank of Montreal,19 Federal Reserve Bulletin 1049,1052 n.21 (1993). Options on corn futures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 Federal Reserve Bulletin • June 1994 Soybean futures ers, and that do not include securities underwriting Options on soybean futures or dealing, pursuant to section 225.25(b)(15)(i) of Soybean meal futures Regulation Y (12 C.F.R. 225.25(b)(15)(i)); Options on Soybean meal futures (4) Providing portfolio investment advice in combi- Soybean oil futures nation with the proposed securities brokerage Options on Soybean oil futures services, pursuant to sections 225.25(b)(4)(iii) and Wheat futures (b)(15)(ii) of Regulation Y (12 C.F.R. 225.25(b)(4)(iii) Options on wheat futures and (b)(15)(ii)); (5) Furnishing general economic information and New York Mercantile Exchange: advice, general economic statistical forecasting Crude oil futures services and industry studies, pursuant to sec- Options on crude oil futures tion 225.25(b)(4)(iv) of Regulation Y (12 C.F.R. No. 2 heating oil futures 225.25(b)(4)(iv)); and Options on no. 2 heating oil futures (6) Providing financial advice to the French govern- Natural gas futures (no related options contract) ment, and its municipalities and agencies, including Unleaded regular gasoline futures advice with respect to the issuance of their securi- Options on unleaded regular gasoline futures ties in the United States and overseas, pursuant to section 225.25(b)(4)(v) of Regulation Y (12 C.F.R. Mid America Commodity Exchange: 225.25(b)(4)(v)). Soybean futures Options on soybean futures Notice of the application, affording interested persons an opportunity to submit comments, has been Kansas City Board of Trade: published (58 Federal Register 5990 (1993)). The time Hard red winter wheat futures for filing comments has expired, and the Board has Options on hard red winter wheat futures considered the application and all comments received in light of the public interest factors set forth in section Caisse Nationale de Credit Agricole 4(c)(8) of the BHC Act. Paris, France Applicant is a cooperative bank organized under the laws of France.1 In the United States, Applicant Order Approving Applications to Engage in Various operates branches in Chicago, Illinois; and New York, Securities-Related Activities, Including Private New York; and a representative office in San Fran- Placement, "Riskless Principal", Full-Service cisco, California.2 Company is, and will continue to Brokerage, and Financial Advisory Activities be, a broker-dealer registered with the Securities and Exchange Commission ("SEC"), and a member of Caisse Nationale de Credit Agricole, Paris, France the National Association of Securities Dealers ("Applicant"), a foreign bank subject to the provi- ("NASD").3 Accordingly, Company is subject to the sions of the Bank Holding Company Act ("BHC Act"), has applied under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of the 1. Applicant, with total consolidated assets equivalent to approxi- Board's Regulation Y (12 C.F.R. 225.23), to engage mately $252 billion, supports and coordinates the operations of 85 regional mutual credit cooperatives and 2,952 local credit cooperade novo through its wholly owned subsidiary, Credit tives. Applicant, together with its affiliated regional and local credit Agricole Securities, Inc., New York, New York cooperatives, comprise the Credit Agricole Group ("CAG"). The ("Company"), in the following activities: CAG, with total consolidated assets equivalent to approximately $305 billion, is the eighth largest banking organization in the world, (1) Acting as agent in the private placement of all and the largest bank in France. Asset and ranking data are as of types of securities, including providing related ad- December 31, 1992, and employ exchange rates then in effect. 2. Under section 8(a) of the International Banking Act visory services; (12 U.S.C. § 3106(a)), a foreign bank that operates a branch, agency, (2) Buying and selling all types of securities on the or commercial lending company subsidiary in the United States is order of investors as a "riskless principal"; subject to the BHC Act as if it were a bank holding company. 3. Company (formerly Bertrand Michel Securities, Inc., New York, (3) Providing securities brokerage services, related New York) is a wholly owned subsidiary of two of Applicant's direct securities credit activities pursuant to the Board's subsidiaries, Segespar-Titres Immeuble Cotentin, Paris, France, and Regulation T (12 C.F.R. Part 220), and incidental SBD Dynabourse, S.A., Paris, France (successor by merger with Bertrand Michel, S.A., Paris, France, another subsidiary of Appliactivities such as offering custodial services, indi- cant). Company is currently engaged in providing brokerage, revidual retirement accounts, and cash management search, and investment advisory services with regard to debt and equity securities of non-United States (principally European) issuers services that are restricted to buying and selling pursuant to section 211.24(e)(3) of the Board's Regulation K securities solely as agent for the account of custom- (12 C.F.R. 211.24(e)(3)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 555 recordkeeping, reporting, fiduciary standards, and Board also found that acting as agent in the private other requirements of the Securities Exchange Act of placement of securities, and purchasing and selling 1934 (15 U.S.C. § 78a et seq.), the SEC, and the securities on the order of investors as a "riskless NASD. principal", do not constitute underwriting and dealing in securities for purposes of section 20 of the Glass- Private Placement and "Riskless Principal" Steagall Act (12 U.S.C. § 377), and that revenue Activities derived from such activities is not subject to the 10 percent revenue limitation on underwriting and Private placement involves the placement of new dealing in ineligible securities.6 In order to address the issues of securities with a limited number of sophisti- potential for conflicts of interests, unsound banking cated purchasers in a nonpublic offering. A financial practices, or other adverse effects, Applicant has intermediary in a private placement transaction acts committed that Company will conduct its private solely as an agent of the issuer in soliciting purchasers, placement and "riskless principal" activities in a and does not purchase the securities and attempt to manner consistent with the limitations, methods, and resell them. Securities that are privately placed are not procedures established by the Board in prior orders, as subject to the registration requirements of the Securi- modified to reflect Applicant's status as a foreign ties Act of 1933, and are offered only to financially bank.7 sophisticated institutions and individuals and not to the public. Applicant has committed that Company Securities Brokerage and Financial Advisory will not privately place registered securities, and will Activities only place securities with "institutional customers" as that term is defined in section 225.2(g) of the Board's The Board has previously determined by regulation Regulation Y (12 C.F.R. 225.2(g)). that furnishing securities brokerage services, either "Riskless principal" is the term used in the securi- separately or in combination with certain investment ties business to refer to a transaction in which a advisory services, and providing general economic broker-dealer, after receiving an order to buy (or sell) information and advice, general economic statistical a security from a customer, purchases (or sells) the forecasting services, and industry studies are activities security for its own account to offset a contemporane- closely related to banking under section 4(c)(8) of the ous sale to (or purchase from) the customer.4 "Risk- BHC Act.8 The Board also has determined by reguless principal" transactions are understood in the lation that providing financial advice to foreign govindustry to include only transactions in the secondary ernments and their political subdivisions, including market. Thus, under the proposal, Company would advice with respect to the issuance of their securinot act as a "riskless principal" in selling securities at ties, are activities closely related to banking.9 Applithe order of a customer that is the issuer of the cant has committed that Company will conduct these securities to be sold, or in any transaction where activities subject to the conditions and limitations in Company has a contractual agreement to place the Regulation Y. securities as agent of the issuer. Company also would not act as a "riskless principal" in any transaction involving a security for which it makes a market. principal", Company will only engage in transactions in the secondary The Board has previously determined that, subject market, and not at the order of a customer that is the issuer of the securities to be sold; will not act as "riskless principal" in any to a number of prudential limitations that address the transaction involving a security for which it makes a market; and will potential for conflicts of interests, unsound banking not hold itself out as making a market in the securities that it buys and practices, and other adverse effects, the proposed sells as a "riskless principal". Moreover, Company will not engage in "riskless principal" transactions on behalf of its foreign affiliates that private placement and riskless principal activities are engage in securities dealing activities outside the United States and will closely related to banking within the meaning of sec- not act as "riskless principal" for registered investment company tion 4(c)(8) of the BHC Act.5 In those orders, the securities. In addition, Company will not act as a "riskless principal" with respect to any securities of investment companies that are advised by Applicant or any of its affiliates. With regard to private placement activities, Applicant has committed that Company will not privately place registered investment company securities or securities of invest- 4. See Securities and Exchange Commission Rule 10b-10. 17 ment companies that are advised by Applicant or any of its affiliates. C.F.R. 240.10b-10(a)(8)(i). 6. Id. 5. See J.P. Morgan & Company Incorporated, 76 Federal Reserve 1. See Sumitomo Bank, Limited, 77 Federal Reserve Bulletin 339 Bulletin 26 (1990); Bankers Trust New York Corporation, 75 Federal (1991); Creditanstalt-Bankverein, 11 Federal Reserve Bulletin 183 Reserve Bulletin 829 (1989). As detailed more fully in these orders, (1991); The Royal Bank of Scotland Group PLC, 76 Federal Reserve Applicant has committed that Company will maintain specific records Bulletin 866 (1990); Canadian Imperial Bank of Commerce, et al., 76 that will clearly identify all "riskless principal" transactions, and that Federal Reserve Bulletin 158 (1990). Company will not engage in any "riskless principal" transactions for 8. 12 C.F.R. 225.25(b)(4)(iv) and (15). any securities carried in its inventory. When acting as a "riskless 9. 12 C.F.R. 225.25(b)(4)(v). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 Federal Reserve Bulletin • June 1994 Financial Factors, Managerial Resources, and Other this order and the conditions set forth in this order and Considerations in the above noted Board regulations and orders. These commitments and conditions shall both be In every case under section 4 of the BHC Act, the deemed to be conditions imposed in writing by the Board considers the financial condition and resources Board in connection with its findings and decisions, of Applicant and its subsidiaries and the effect of the and may be enforced in proceedings under applicable proposal on these resources.10 In this case, the Board law. notes that Applicant meets the relevant risk-based This transaction shall not be consummated later capital standards consistent with the Basle Accord, than three months after the effective date of this order, and has capital equivalent to that which would be unless such period is extended for good cause by the required of a United States banking organization. In Board or by the Federal Reserve Bank of Chicago, view of these and other facts of record, the Board has pursuant to delegated authority. determined that the financial factors are consistent By order of the Board of Governors, effective with approval. The managerial resources of Applicant April 18, 1994. also are consistent with approval. Consummation of the proposal would provide added Voting for this action: Chairman Greenspan and Governors convenience to Applicant's customers. In addition, Kelley, La Ware, Lindsey, and Phillips. the Board expects that the de novo entry of Applicant into the market for these services in the United States JENNIFER J. JOHNSON Associate Secretary of the Board would increase the level of competition among providers of these services. Consummation of this proposal, Orders Issued Under Sections 3 and 4 of the subject to the terms and conditions discussed in this Bank Holding Company Act order and the orders cited herein, is not likely to result in any significantly adverse effects. Accordingly, the Marshall & Ilsley Corporation Board has determined that the performance of the Milwaukee, Wisconsin proposed activities by Applicant reasonably can be expected to produce public benefits that would out- Order Approving Acquisition of a Bank Holding weigh potential adverse effects under the proper inci- Company dent to banking standard of section 4(c)(8) of the BHC Act. Marshall & Ilsley Corporation, Milwaukee, Wisconsin Based on the foregoing and other facts of record, ("M&I"), a bank holding company within the meaning and subject to the commitments made by Applicant, of the Bank Holding Company Act ("BHC Act"), the Board has determined that the balance of public has applied pursuant to section 3 of the BHC Act interest factors it is required to consider under section (12 U.S.C. § 1842), to acquire Valley Bancorpora- 4(c)(8) is favorable. Accordingly, the Board has detertion, Appleton, Wisconsin ("Valley"), and thereby mined that the application should be, and hereby is, indirectly acquire the subsidiary banks of Valley listed approved, subject to all the terms and conditions set in Appendix A of this Order.1 M&I also has applied forth in this order, and in the above noted Board pursuant to section 4(c)(8) of the BHC Act regulations and orders that relate to these activities. (12 U.S.C. § 1843(c)(8)) to acquire the nonbanking The Board's determination is also subject to all of the subsidiaries of Valley listed in Appendix B of this terms and conditions set forth in the Board's Regula- Order. tion Y, including those in sections 225.4(d) and Notice of the applications, affording interested per- 225.23(b), and to the Board's authority to require sons an opportunity to submit comments, has been modification or termination of the activities of a bank published (58 Federal Register 68,912 (1993)). The holding company or any of its subsidiaries as the time for filing comments has expired, and the Board Board finds necessary to assure compliance with, and has considered the applications and all comments to prevent evasion of, the provisions of the BHC Act, received in light of the factors set forth in sections 3 and the Board's regulations and orders issued thereand 4 of the BHC Act. under. The Board's decision is specifically conditioned on compliance with all the commitments made in this application, including the commitments discussed in 1. In connection with M&I's proposed acquisition of Valley, M&I has requested Board approval under section 3 of the BHC Act to 10. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve acquire an option to purchase up to 19.9 percent of the voting shares Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve of Valley. This option would become moot upon consummation of the Bulletin 155 (1987). proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 557 M&I, with consolidated assets of approximately to mitigate the potentially anti-competitive effects of $8.0 billion, controls 38 banks in Wisconsin and Ari- the proposal in these markets.6 M&I also has commitzona.2 Valley, with consolidated assets of approxi- ted that all divestitures will be made to competitively mately $4.6 billion, controls 15 banks in Wisconsin. suitable acquirors whose acquisition of the divested Upon consummation of this proposal, M&I would assets and liabilities would not result in a substantial become the largest commercial banking organization lessening of competition in the relevant markets.7 in Wisconsin, controlling deposits of $9.5 billion, After giving effect to the proposed divestitures and representing approximately 21.5 percent of the total competition offered by thrifts in the New Holstein, deposits in commercial banks in the state.3 Mayville and Rhinelander banking markets, the competitive effect of the transaction would be consistent Competitive Effects with the merger guidelines established by the Department of Justice and parameters applied by the Board in M&I and Valley compete directly in 16 banking mar- previous decisions. kets in Wisconsin. Consummation of this proposal In the remaining banking markets of Oshkosh and would result in the elimination of a competitor and in West Bend these guidelines would be exceeded. In the an increase in the concentration in each market as Oshkosh banking market,8 upon consummation of this measured by the Herfindahl-Hirschman Index proposal M&I would become the second largest ("HHI").4 After considering the competition offered commercial bank or thrift institution ("depository by thrift institutions,5 the number of competitors re- institution") in the market, controlling deposits of maining in the markets, the increase in concentration $128.4 million, representing 18.6 percent of total deto a level not exceeding the threshold levels in the posits in depository institutions in the market ("mar- Department of Justice's revised guidelines, and other ket deposits").9 The HHI would increase by 205 facts of record, the Board has concluded that consum- points to 1943. In the West Bend banking market,10 mation of the proposal would not result in a signifi- upon consummation of this proposal M&I would becantly adverse effect on competition in the following come the largest depository institution in the market, 11 markets: Janesville, Eau Claire, Fond du Lac, controlling deposits of $198.5 million, representing Green Bay, La Crosse, Madison, Mauston, Milwau- 30.9 percent of market deposits. The HHI would kee, Neillsville, Watertown, and Columbia County. increase by 267 points to 1911. The remaining banking markets in which M&I and Valley compete are New Holstein, Rhinelander, Mayville, Oshkosh and West Bend. Various measures of market concentration, including the HHI, indicate 6. M&I has committed to execute final sales agreements to effect these divestitures prior to the consummation of the acquisition of that, absent divestitures of branches, the proposal may Valley, and to consummate these divestitures within 180 days of result in significant adverse competitive effects in consummation of the acquisition of Valley. M&I also has committed these markets. M&I has proposed divestitures in order that, in the event it is unsuccessful in completing the divestiture within 180 days of consummation of the proposal, M&I will transfer the relevant office or offices to an independent trustee that has been instructed to sell the office promptly. See, e.g., BankAmerica Corpo- 2. Asset data are as of December 31, 1993. ration, 78 Federal Reserve Bulletin 338, 340 (1992); United New 3. State deposit data are as of December 31, 1993. Mexico Financial Corporation, 77 Federal Reserve Bulletin 484, 485 4. Under the revised Department of Justice Merger Guidelines, (1991). M&I also has agreed to divest certain offices in Madison, 49 Federal Register 26,823 (June 29,1984), a market in which the post- Wisconsin, in light of comments from the Department of Justice. merger HHI is above 1800 is considered to be highly concentrated. In 7. M&I is currently evaluating bids for each proposed divestiture such markets, the Justice Department is likely to challenge a merger from institutions located within and outside these banking markets. that increases the HHI by more than 50 points. The Justice Depart- The Board has considered the competitive effects of this proposal on ment has informed the Board that a bank merger or acquisition the basis of the greatest potential anti-competitive effect that would generally will not be challenged (in the absence of other factors result from the winning bidder in each market being the largest indicating anti-competitive effects) unless the post-merger HHI is at in-market competitor. least 1800 and the merger or acquisition increases the HHI by at least 8. The Oshkosh banking market is approximated by Winnebago 200 points. The Justice Department has stated that the higher than County, Wisconsin, except for Winchester, Clayton, Menasha, and normal threshold for an increase in the HHI when screening bank Neenah townships. mergers and acquisitions for anti-competitive effects implicitly recog- 9. M&I is the fourth largest depository institution in the market, nizes the competitive effect of limited-purpose lenders and other controlling deposits of $95.7 million, representing 13.9 percent of non-depository financial entities. market deposits. Valley is the second largest depository institution in 5. The Board previously has indicated that thrift institutions have the market, controlling deposits of $114.5 million, representing 16.6 become, or have the potential to become, major competitors of percent of market deposits. commercial banks. See Midwest Financial Group, 75 Federal Reserve 10. The West Bend banking market is approximated by Washington Bulletin 386 (1989); National City Corporation, 70 Federal Reserve County, Wisconsin, except for Polk, Jackson, Richfield, and German- Bulletin 743 (1984). Thus, the Board has regularly included thrift town townships. M&I is the largest depository institution in the market, deposits in the calculation of market share on a 50 percent weighted controlling deposits of $169.8 million, representing 26.4 percent of basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 market deposits. Valley is the third largest depository institution in the (1991). In considering the competition offered by thrifts in all banking market, controlling deposits of $116.1 million, representing 18.1 percent markets in this case, thrift deposits are weighted at 50 percent. of market deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 Federal Reserve Bulletin • June 1994 A number of factors indicate that the competitive moderate-income neighborhoods, consistent with the effects of the increase in market concentration as safe and sound operation of such institutions," and to measured by the HHI may be overstated in these two take that record into account in its evaluation of bank markets. Both the Oshkosh and West Bend banking holding company applications.13 markets are attractive for entry,11 and at least nine In this regard, the Board has received comments competitors would remain in each market after giving from two organizations criticizing M&I's record of effect to the proposed divestitures. In each banking performance under the CRA.14 One commenter ("Milmarket the remaining competitors would include two waukee Protestant") maintains that data filed under of the state's five largest banking organizations, and, the Home Mortgage Disclosure Act ("HMDA") for in the Oshkosh banking market, the state's second the period 1990-92 indicate that M&I discriminates largest thrift institution. against low- and moderate-income and minority resi- The Board has sought comments from the United dents in Milwaukee. This protestant also criticizes the States Attorney General, the Office of the Comptroller denial rates for minority applicants under a special of the Currency ("OCC"), and the Federal Deposit M&I home loan program, and contends that M&I does Insurance Corporation ("FDIC") on the competitive not have a sufficient number of branches to meet the effects of this proposal. The FDIC and the OCC have needs in low- and moderate-income and minority areas not objected to this proposal. The Attorney General in Milwaukee. The other commenter ("Madison Prothas indicated that, subject to M&I divesting the estant") alleges that M&I's 1991 and 1992 HMDA data branches to competitively suitable buyers, there show discrimination against low- and moderatewould be no significantly adverse effects on competi- income and minority borrowers in Madison,15 and tion in any relevant banking market. After considering criticizes the proposed sale of a branch located in a low- and moderate-income area in connection with this the proposed divestitures in the relevant banking martransaction. kets, the relatively small increases in market concentration in each of these markets, the number of depos- The Board has carefully reviewed the CRA perforitory institution competitors remaining, and all the mance record of M&I and its subsidiary banks, as well other facts of record, the Board concludes that con- as all comments received regarding this application, summation of this proposal would not have a signifi- the responses to those comments, and all the other cantly adverse effect on competition or on the concen- relevant facts of record in light of the CRA, the tration of resources in any relevant banking market.12 Board's regulations, and the Statement of the Federal Financial Supervisory Agencies Regarding the Com- Convenience and Needs Considerations munity Reinvestment Act ("Agency CRA Statement").16 In considering an application under the BHC Act, the Board is required to consider the convenience and Record of Performance Under the CRA needs of the communities to be served, and take into account the records of the relevant depository institu- A. Evaluations of CRA Performance tions under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA re- The Agency CRA Statement provides that a CRA quires the federal financial supervisory agencies to examination is an important, and often controlling, encourage financial institutions to help meet the credit factor in the consideration of an institution's CRA needs of the local communities in which they operate, record and that these reports will be given great weight consistent with the safe and sound operation of such in the applications process.17 In this case, the Board institutions. To accomplish this end, the CRA requires notes that all of M&I's subsidiary banks have been the appropriate federal supervisory authority to "as- examined for CRA performance and have received sess the institution's record of meeting the credit "outstanding" or "satisfactory" ratings during the needs of its entire community, including low- and most recent examinations of their CRA performance. 11. In this regard, both the Oshkosh and West Bend markets exceed 13. 12 U.S.C. § 2903. the average for non-MSA markets in Wisconsin in terms of population 14. The Board also received a comment from an individual objecting per banking office, deposits per banking office and total per capita to these protests and requesting that the Board approve these appliincome. cations. 12. The Board has received a number of comments from individuals 15. Madison Protestant maintains that the majority of loans made by and businesses maintaining that consummation of this proposal would M&I to minorities are to upper-income borrowers, and that a disprogive M&I a monopoly for banking services in several Wisconsin portionate share of the loans made in low- and moderate-income areas banking markets. The Board has carefully reviewed these comments are to non-minority individuals. in light of all facts of record and, for the reasons discussed above, does 16. 54 Federal Register 13,742 (1989). not believe that these comments warrant denial of this application. 17. Id. at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 559 In particular, M&I's lead subsidiary bank, M&I Mar- chase applications from, and originations to, low- and shall & Ilsley Bank, Milwaukee, Wisconsin ("M&I- moderate-income and minority individuals.18 The per- Milwaukee"), received a "satisfactory" rating from centage of home purchase loans originated by M&I to its primary federal regulator, the Federal Reserve minorities in Milwaukee now more closely approxi- Bank of Chicago, at its most recent examination for mates the percentage of minorities in Milwaukee. The CRA performance as of January 1993. M&I Madison bank also offers alternative loan programs through Bank, Madison, Wisconsin ("M&I-Madison"), re- M&I's mortgage subsidiary with long-term, fixed rate ceived an "outstanding" rating for CRA performance loan products offered in conjunction with the State of from its primary federal regulator, the FDIC, as of Wisconsin Housing and Economic Development Au- May 1992. In addition, all of Valley's subsidiary banks thority ("WHEDA").19 In addition, M&I-Milwaukee have received "outstanding" or "satisfactory" ratings participates in the New Opportunities for Homeownduring the most recent examinations of their CRA ership in Milwaukee program ("NOHIM") funded by performance from their primary federal regulators. the Milwaukee Community Development Block Grant.20 B. HMDA Data and Lending Practices M&I-Milwaukee also participates in several community development projects, including housing re- The Board has carefully reviewed the 1990-92 HMDA lated lending, as a component of its CRA program. For data, and preliminary data for 1993, reported by M&I example, M&I-Milwaukee has invested in the Housing for Milwaukee and Madison in light of the Protestants' Equity Fund, a limited partnership created to invest in comments. In general, these data indicate that M&I low- and moderate-income housing projects. In addihas improved its lending record of home mortgage tion, M&I-Milwaukee participates in other housing loans in some low- and moderate-income and minority development projects such as the Glenview Project, areas. However, the data also reflect disparities in the Merrill Park Renaissance Project, and the Neighlending to low- and moderate-income areas and minor- borhood Development Center. The bank also has ity borrowers in other areas. contracted with the Walker's Point Development Cor- The Board is concerned when the record of an poration to provide homebuying counseling services to institution indicates disparities in lending to minority low- and moderate-income families desiring homeownapplicants and believes that all banks are obligated to ership. The bank has provided over $1 million in ensure that their lending practices are based on criteria funding for various nonprofit community housingthat assure not only safe and sound lending, but also related organizations and other organizations that serve the housing needs of senior citizens and disabled assure equal access to credit by creditworthy appliresidents. In general, M&I-Milwaukee has financed cants regardless of race. The Board recognizes, howover $2 million in community development projects, ever, that HMDA data alone provide an incomplete primarily for housing activities.21 measure of an institution's lending in its community. The Board also recognizes that HMDA data have limitations that make the data an inadequate basis, absent other information, for concluding that an insti- 18. Milwaukee Protestant criticizes this program and alleges that the tution has engaged in illegal discrimination in making loan rejection rate for minorities is disproportionately high. This lending decisions. program was specifically designed after consultations with area real- The Board notes that the most recent CRA exami- tors and community groups for borrowers with incomes at or below the median income in the Metropolitan Statistical Area who are nations for M&I-Milwaukee and M&I-Madison found purchasing homes for $75,000 or less. The five-year term loans offered no evidence of illegal discrimination or other illegal under this program permit M&I to apply flexible underwriting criteria and terms. M&I reports that a significant number of the denials credit practices, and that the banks were in substantial reflected in its HMDA data were not loan applicants applying to compliance with the provisions of anti-discrimination purchase a specific property, but rather individuals making inquiries laws and regulations. In this regard, examiners ran- that were required to be reported as denials under the Board's Regulations B and C. M&I has made 128 loans under the program, 90 domly selected and reviewed the banks' loan docuof which were to minority applicants. mentation, including files for rejected loans. M&I- 19. M&I Mortgage Corporation makes loans on behalf of all M&I Milwaukee also reviews denied credit applications and banks and participates in governmentally sponsored loan programs such as the Federal Housing Administration ("FHA"), and state and samples of approved loans to ensure compliance with federal Veterans Administration ("VA") lending programs. fair lending laws. 20. This project was sponsored by the Mayor of Milwaukee in 1991, In addition, both banks have taken a number of and designed to expand homebuying counseling in the city. Under NOHIM, participating lenders pay an entry fee and counseling agensteps to address the disparities in their HMDA data. cies refer potential borrowers to the lenders. M&I reported that it has For example, M&I-Milwaukee introduced the Neigh- made 35 loans under the program and has not denied any applications referred from the counseling agencies since NOHIM's inception. borhood Home Loan Program in January 1993, and 21. In addition, as of the date of its most recent CRA exam, the bank has substantially increased the number of home pur- had over $1.5 million outstanding in SB A loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 Federal Reserve Bulletin • June 1994 M&I-Madison offers a variety of loan products to purpose of the CRA, and does not exclude low- and assist in meeting the credit needs of the community, moderate-income areas. The bank has a total of eight including low- and moderate-income neighborhoods, offices, with two of the offices located in census tracts for housing-related loans. For example, the bank in- targeted under the bank's Affordable Home Loan troduced its Affordable Home Loan Program in 1990 in Program. A review by examiners of the data for cooperation with a coalition of Madison community origination of loans, applications and denials, as well organizations. This program provides flexible under- as sample applications that were denied, indicates a writing guidelines for loans to low- and moderate- reasonable geographic diversity of loan originations. income individuals. Since the introduction of this product, the bank has originated 130 loans totaling D. Additional Elements of CRA Performance $6.9 million. M&I-Madison also is a participant in a number of government supported loan programs. The M&I has in place the corporate policies, ascertainment bank participates in federal and state VA loan pro- and marketing, lending and other activities that assist grams, programs of the WHEDA, the SBA, the Farm- in meeting the credit needs of minorities and low- and ers Home Administration, and the Federal Home Loan moderate-income neighborhoods. In this regard, M&I- Mortgage Corporation. Bank also actively originates Milwaukee ascertains community credit needs through residential real estate mortgages, rehabilitation and a variety of community outreach programs and a home improvement loans and small business loans. formal officer call program.23 M&I banks also have M&I-Madison participates in a number of commu- policies and procedures to monitor their lending and nity development and redevelopment projects. These credit activities for effectiveness in meeting credit projects include Venture Investors of Wisconsin, Inc., needs. M&I-Madison has established a CRA commit- Madison Mutual Housing Association, the Dane tee which reports the banks CRA activities to the County Development Company, Inc., the City of board of directors on a quarterly basis. Madison Economic Development Commission, and Transitional Housing, Inc. The bank also has provided E. Conclusion Regarding Convenience and loans to Transitional Housing, Inc., an organization Needs Factors providing housing to homeless men, which has provided housing for 100 people. The Board has carefully considered all the facts of record, including the comments filed in this case, in C. Geographic Distribution of Loans/Branch reviewing the convenience and needs factor under the Offices BHC Act. Based on a review of the entire record of this application, including the most recent CRA per- M&I-Milwaukee's most recent CRA performance ex- formance examinations of the institutions involved in amination showed that the geographic distribution of this case, the Board believes that the efforts of M&I to its credit extensions, applications, and denials reflected help meet the credit needs of all segments of the a reasonable penetration in most segments of the delin- communities served, including low- and moderateeated community, including low- and moderate-income income neighborhoods, and all other convenience and areas. M&I-Milwaukee has 19 full service branch needs considerations, are consistent with approval of locations and 5 of those branches are located in low- these applications.24 and moderate-income census tracts.22 In addition, M&I-Milwaukee opened a loan office in a predominantly minority area in Milwaukee's northside in 1993. 23. For example, the bank introduced the M&I First Home Savers Plan Account, designed to help first-time home buyers accumulate The bank's most recent CRA examination found that funds for down payment and closing costs. M&I's Neighborhood there were no indications that applications for loans on Home Loan Product also was developed as a result of its ascertainproperty located in low- to moderate-income neighbor- ment efforts. 24. The Milwaukee Protestant has requested the Board hold a public hoods were receiving adverse treatment because of the hearing or meeting on these applications. Section 3(b) of the BHC Act location of the property. does not require the Board to hold a public hearing on an application M&I-Madison's most recent CRA examination unless the appropriate supervisory authority for the bank to be acquired makes a timely written recommendation of denial of the stated that the bank's delineated community meets the application. In this case, the Wisconsin Commissioner of Banking has not recommended denial of the proposal. Generally, under the Board's rules, the Board may, in its discretion, hold a public hearing or meeting on an application to clarify factual 22. In addition, M&I has two other subsidiary banks, M&I North- issues related to the application and to provide an opportunity for ern Bank and M&I South Shore Bank, with branches in low- and testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The moderate-income areas in Milwaukee. M&I also has stated that it Board has carefully considered this request. In the Board's view, intends to retain Valley's Milwaukee branch which is located in a Protestants have had ample opportunity to present written submispredominantly minority area. sions, and have, in fact, submitted written comments that have been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 561 Other Considerations Board finds necessary to assure compliance with, or to prevent evasions of, the provisions and purposes of The financial and managerial resources,25 and future the BHC Act and the Board's regulations and orders prospects of M&I, Valley, and their respective subsid- issued thereunder. The commitments and conditions iaries, and other supervisory factors that the Board relied on in reaching this decision are both deemed to must consider under section 3 of the BHC Act also are be conditions imposed in writing by the Board in consistent with approval of this proposal. connection with its findings and decision, and, as such, M&I and Valley engage directly and through sub- may be enforced in proceedings under applicable law. sidiaries in a number of nonbanking activities that the The acquisition of the subsidiary banks shall not be Board has determined by order or regulation to be consummated before the thirtieth day following the permissible for bank holding companies. The Board effective date of this order, and the acquisitions of the has reviewed the proposal to acquire relevant non- relevant banks and nonbanking companies shall not be banking subsidiaries in this case under section 4(c)(8) consummated later than three months after the effecof the BHC Act. Applicant has committed that these tive date of this order, unless such period is extended activities will be conducted in accordance with the for good cause by the Board or by the Federal Reserve relevant Board regulations and orders. The record in Bank of Chicago, acting pursuant to delegated authis case indicates that there are numerous providers thority. of all nonbanking services in the proposal, and there is By order of the Board of Governors, effective no evidence in the record to indicate that consumma- April 11, 1994. tion of this proposal is likely to result in any significantly adverse effects, such as undue concentration of Voting for this action: Chairman Greenspan and Governors resources, decreased or unfair competition, conflicts Kelley, LaWare, Lindsey, and Phillips. of interest, or unsound banking practices that would outweigh the public benefits of this proposal. Accord- JENNIFER J. JOHNSON Associate Secretary of the Board ingly, the Board has determined that the balance of public interest factors it must consider under section Appendix A 4(c)(8) of the BHC Act is favorable and consistent with approval of these applications. Valley Subsidiary Banks Conclusion 1. Valley Bank, Appleton, Wisconsin 2. Valley Bank, LaCrosse, Wisconsin Based on the foregoing and all the facts of record, the 3. Valley Bank, Madison, Wisconsin Board has determined that these applications should 4. Valley Bank, Menomonie, Wisconsin be, and hereby are, approved. The Board's approval of this proposal is expressly conditioned on compli- 5. Valley Bank, Milwaukee, Wisconsin ance with the commitments made by M&I in connec- 6. Valley Bank, Janesville, Janesville, Wisconsin tion with these applications, including the divestiture 7. Valley Bank, Northeast, Green Bay, Wisconsin commitments, and with the conditions referenced in 8. Valley Bank, East Central, Kewaskum, Wisconsin this order. The determinations as to the nonbanking 9. Valley Bank, Southwest, Spring Green, Wisconsin activities are subject to all of the conditions in the 10. Valley Bank of Oshkosh, Oshkosh, Wisconsin Board's Regulation Y, including those in sections 11. Valley First National Bank, Rhinelander, Wisconsin 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and 12. Valley Bank of Shawano (N.A.), Shawano, Wis- 225.23(b)(3)), and the Board's authority to require consin such modification or termination of the activities of a 13. Valley First National Bank, Ripon, Wisconsin holding company or any of its subsidiaries as the 14. Valley Bank (N.A.), Watertown, Wisconsin 15. Pierce County Bank and Trust Company, Ellsworth, Wisconsin considered by the Board. Therefore, the Board has determined that a public meeting or hearing is not necessary to clarify the factual record Appendix B in this application, or otherwise warranted in this case, and the request for a public meeting or hearing on this application is denied. 25. The Board has received two comments from individuals object- Valley Nonbanking Subsidiaries ing to the amount of compensation the officers and directors of Valley will receive from the proposed transaction. Based on all facts of record, including the current level of compensation for these officers 16. Valley Trust Company, and thereby engage in trust and directors, the Board does not believe that these comments raise company activities, pursuant to § 225.25(b)(3) of issues that would warrant denial under the factors required to be considered under the BHC Act. the Board's Regulation Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 Federal Reserve Bulletin • June 1994 17. Valley United Bank, S.S.B., and thereby operate a that Bank would not meet the credit needs of the entire savings association, pursuant to § 225.25(b)(9) of community in Meeker. One commenter questioned the the Board's Regulation Y. accuracy of Bank's financial projections and whether 18. Valley Western Bank, F.S.B. and thereby operate Bank has the financial resources to support the proa savings association, pursuant to § 225.25(b)(9) of posed branch. Another commenter believed that the the Board's Regulation Y. competition offered by the proposed branch would be 19. Valley Real Estate Services Corporation, and harmful in a town that is adequately served by a single thereby provide mortgage loan servicing, pursuant banking institution. The Board has carefully considto § 225.25(b)(1) of the Board's Regulation Y. ered these comments in light of the relevant statutory 20. Community Life Insurance Company, and thereby factors. engage in permissible insurance underwriting, pur- In its evaluation of an application to establish a suant to § 225.25(b)(8) of the Board's Regulation Y. branch, the Board is required to take into account the 21. Valley BankService Corp., which provides servic- institution's record of performance under the Commuing pursuant to § 225.22(a) of the Board's Regula- nity Reinvestment Act (12 U.S.C. § 2901 et seq.) tion Y. ("CRA").2 The CRA requires the federal financial supervisory agencies to encourage financial institutions to help meet the credit needs of the local com- ORDERS ISSUED UNDER FEDERAL RESERVE ACT munities in which they operate, consistent with safe and sound operation of such institutions. To accom- Rocky Mountain State Bank plish this end, the CRA requires the appropriate fed- Rangely, Colorado eral supervisory authority to "assess the institution's record of meeting the credit needs of its entire com- Order Approving Establishment of a Branch and munity, including low- and moderate-income neigh- Investment in Bank Premises borhoods, consistent with the safe and sound operation of such institution," and to take that record into Rocky Mountain State Bank, Rangely, Colorado account in its evaluation of branch applications.3 ("Bank"), a state member bank, has applied under The Statement of the Federal Financial Supervisory sections 9 and 24A of the Federal Reserve Act Agencies Regarding the Community Reinvestment (12 U.S.C. §§ 321 and 371(d)), to establish a branch Act4 provides that a CRA examination is an important office on West Market Street, Meeker, Colorado, and and often controlling factor in the consideration of an to make an additional investment in bank premises. institution's CRA record and that these reports will be Notice of these applications, affording interested given great weight in the applications process. The persons an opportunity to submit comments, has been Board notes that Bank received a "satisfactory" ratduly published. The time for filing comments has ing from the Federal Reserve Bank of Kansas City at expired, and the Board has considered the applications its most recent examination for CRA performance in and all comments received in light of the factors December 1992 ("1992 Examination"). contained in the Federal Reserve Act. Bank offers a variety of credit products that address Bank, with assets of approximately $12.4 million,1 the credit needs in the local community and examiners has only one office at its headquarters in Rangely. This found these efforts to be satisfactory.5 A sample of proposal represents Bank's first branch office. approved and denied loans reviewed in the 1992 Ex- In connection with these applications, the Board amination reflected a reasonable penetration of credit received comments both supporting and opposing the to all segments of Bank's delineated community. In proposal. Comments supporting the application noted addition, Bank markets its products and services to its that the branch would provide alternative banking entire delineated community through a local newspaservices to those provided by the only financial insti- per and statement inserts to customers. Bank also tution currently in Meeker. Another commenter, a participates in community development projects by former customer of Bank, expected Bank to offer the same quality of services available in Rangely to the residents of Meeker. 2. See 12 U.S.C. §§ 2902(3)(C), 2903(2). Some commenters opposed the application because 3. 12 U.S.C. § 2903. 4. 54 Federal Register 13,742, 13,745 (1989). they thought that Bank's record of meeting credit 5. Bank's relatively low loan-to-deposit ratio was noted in the 1992 needs in Rangely was inadequate and, consequently, Examination and was attributed to a decrease in loan demand. Bank projects that loan demand will increase with improving economic conditions. Bank also notes that even during the period 1990 to 1993 when its loan-to-deposit ratio declined, Bank's approval rate for loans 1. Asset data are as of December 31, 1993. averaged 91 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 563 making loans to small businesses, providing funds for Voting for this action: Chairman Greenspan and Governors local redevelopment projects, and participating in the Kelley, La Ware, Lindsey, and Phillips. lending activities of the Rangely Development Agency. The 1992 Examination found no evidence of JENNIFER J. JOHNSON Associate Secretary of the Board illegal discrimination or any practices intended to discourage applicants from applying for the types of credit offered by Bank. Based on all facts of record, ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT the Board concludes that Bank's record of perfor- INSURANCE CORPORATION IMPROVEMENT ACT mance under the CRA is consistent with approval of these applications. By the Board The Meeker branch represents a small capital investment and modest financial risk to Bank. Based on Banque Nationale de Paris all facts of record, including the results of Bank's most Paris, France recant safety and soundness examination and other confidential financial information, the Board believes Order Approving the Acquisition of Certain Assets that Bank has sufficient financial resources to support and the Assumption of Certain Liabilities of a the proposed branch. The Board also expects that Federal Savings Bank Bank's de novo branch will provide customers with an alternative in the competition for banking services in Meeker.6 Banque Nationale de Paris, Paris, France ("Applicant"), a bank holding company within the meaning of For the reasons discussed above, and in light of all the Bank Holding Company Act ("BHC Act"), has facts of record, the Board concludes that the comapplied under section 5(d)(3) of the Federal Deposit ments opposing these applications do not warrant Insurance Act ("FDI Act")1 for its wholly owned denial of these applications. The Board also concludes subsidiary, Bank of the West, San Francisco, Califoron the basis of all facts of record that the factors nia ("Bank"), to acquire certain assets and assume required to be considered when approving applications certain liabilities of Citibank, F.S.B., Oakland, Califor the establishment of branches, including the finanfornia ("Citibank FSB"). Section 5(d)(3) of the FDI cial condition of Bank, the general character of its Act requires the Board to review any transfer of assets management, and the proposed exercise of corporate and liabilities of a member of the Savings Association powers, are consistent with approval and the purposes Insurance Fund to a member of the Bank Insurance of section 9 of the Federal Reserve Act. Fund ("BIF") if the BIF member is a subsidiary of a Based on the foregoing and other facts of record, the bank holding company.2 In reviewing such proposals, Board has determined that these applications should the Board must follow the procedures and consider the be, and hereby are, approved. The Board's approval is factors set forth in section 18(c) of the FDI Act ("Bank specifically conditioned upon compliance by Bank Merger Act").3 The Federal Deposit Insurance Corwith all the commitments made in connection with poration has considered this proposal under the Bank these applications. For purposes of this action, these Merger Act, and after review of all of the factors in commitments and conditions are considered condithat statute, has approved the proposal. tions imposed in writing by the Board in connection Notice of the application, affording interested perwith its findings and decisions, and, as such, may be sons an opportunity to submit comments, has been enforced in proceedings under applicable law. published in accordance with the Bank Merger Act This branch shall be in operation no later than one and the Board's Rules of Procedure.4 Reports on the year after the effective date of this order, unless such competitive effects of the merger were requested from period is extended for good cause by the Board or by the United States Attorney General, the Federal Dethe Federal Reserve Bank of Kansas City, acting posit Insurance Corporation, and the Office of Thrift pursuant to delegated authority. By order of the Board of Governors, effective April 18, 1994. 1. See 12 U.S.C. § 1815(d)(3), as amended by the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. No. 102— 242, § 501, 105 Stat. 2236, 2388-92 (1991). 2. See 12 U.S.C. § 1815(d)(3)(A)(ii). 6. The record indicates that there is a demand for banking services 3. See 12 U.S.C. § 1815(d)(3)(E). The Bank Merger Act requires in Meeker. For example, Bank states that it is processing loan the Board to consider the competitive effects of the proposed transapplications for approximately $500,000 from businesses and individ- actions, the financial and managerial resources and future prospects of uals in the Meeker area as a result of its notice to establish the the existing and proposed institutions, and the convenience and needs proposed branch. Moreover, the only banking organization currently of the communities to be served. See 12 U.S.C. § 1828(c)(5). located in Meeker realizes higher than average levels of profitability. 4. See 12 U.S.C. § 1828(c)(3); 12 C.F.R. 262.3(b). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 Federal Reserve Bulletin • June 1994 Supervision. The time for filing comments has expired, The Board has determined that consummation of this and the Board has considered the application and all proposal would not have a significantly adverse effect comments received in light of the factors set forth in on competition in these six banking markets or in any the Bank Merger Act and section 5(d)(3) of the FDI other relevant banking market after considering the Act. number of competitors remaining in these markets, the Applicant, with total consolidated assets equivalent resulting market shares, the absence of any increases to approximately $284 billion, is the thirteenth largest or the relatively small increases in market concentrabank in the world, and the third largest banking tions as measured by the HHI, and all other facts of organization in France.5 In the United States, Appli- record. cant operates branches in New York, New York; and The Board also concludes that the financial and Chicago, Illinois; maintains agencies in Los Angeles managerial resources and future prospects of Appliand San Francisco, California; Miami, Florida; and cant and Bank, and considerations relating to the Houston, Texas; and controls a number of companies convenience and needs of the communities to be engaged in permissible nonbanking activities. Bank is served, are consistent with approval of this applica- Applicant's sole subsidiary bank in the United States. tion. Moreover, the record in this case shows that, Applicant is the tenth largest commercial banking with respect to the other factors the Board must organization in California, controlling deposits of consider under section 5(d)(3) of the FDI Act:10 $3.2 billion, representing approximately 1.24 percent (1) The transaction will not result in the transfer of of total deposits in commercial banking organizations any federally insured depository institution's federal in the state.6 Upon consummation of the proposed deposit insurance from one federal deposit insurtransaction, Applicant would become the ninth largest ance fund to the other; commercial banking organization in California, con- (2) Applicant and Bank currently meet, and upon trolling deposits of $3.6 billion, representing 1.41 per- consummation of the proposed transaction will concent of total deposits in commercial banking organiza- tinue to meet, all applicable capital standards; and tions in the state. (3) Applicant's acquisition of certain assets and Applicant and Citibank FSB compete directly in six assumption of certain liabilities of a California fedbanking markets.7 Upon consummation of the pro- eral savings bank would comply with section 3(d) of posal, each of these markets would remain either the BHC Act ("Douglas Amendment")11 as if Citiunconcentrated or moderately concentrated as mea- bank FSB were a state bank that Applicant was sured by the Herfindahl-Hirschman Index ("HHI"),8 applying to acquire directly. and Bank would not control more than 6 percent of the deposits in commercial banks in any of these markets.9 Based on the foregoing and all the facts of record, the Board has determined that this application should be, and hereby is, approved. This approval is subject 5. Data are as of December 31, 1992. to Bank obtaining the required approval of the appro- 6. Data are as of December 31, 1993. 7. These banking markets are approximated by the following priate federal banking agency for the proposed merger Ranally Metropolitan Areas ("RMA"): Napa RMA, Sacramento under the Bank Merger Act, and to Bank obtaining all RMA, San Francisco-Oakland RMA, Santa Cruz RMA, Santa Rosa necessary state regulatory approvals. The Board's RMA, and Stockton RMA. 8. Under the revised Department of Justice Merger Guidelines, decision is specifically conditioned on compliance with 49 Federal Register 26,823 (1984), a market in which the post-merger all the commitments made in connection with this HHI is less than 1000 is considered unconcentrated, a market in which application. For purposes of this action, these committhe post-merger HHI is between 1000 and 1800 is considered moderately concentrated, and a market in which the post-merger HHI is ments and conditions shall be deemed to be conditions above 1800 is considered to be highly concentrated. The Justice imposed in writing by the Board in connection with its Department has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors findings and decisions, and, as such, may be enforced indicating anti-competitive effects) unless the post-merger HHI is at in proceedings under applicable law. This approval is least 1800 and the merger or acquisition increases the HHI by at least limited to the proposal presented by Applicant to the 200 points. The Justice Department has stated that the higher than normal threshold for an increase in the HHI when screening bank Board, and may not be construed as approving any mergers and acquisitions for anti-competitive effects implicitly recog- other transaction. nizes the competitive effect of limited-purpose lenders and other non-depository financial entities. 9. The HHI would increase 17 points to 1302 for the Napa RMA, 9 points to 1297 for the Santa Cruz RMA, 5 points to 891 for the Santa Rosa RMA, 4 points to 1230 for the Stockton RMA, would remain at 1223 for the Sacramento RMA, and would remain at 1426 for the San (ranking seventh of 20), 1.05 in the Sacramento RMA (ranking twenty Francisco-Oakland RMA. Bank would have a market share of second of 45), and 2.66 percent in the San Francisco-Oakland RMA 5.96 percent in the Napa RMA (ranking sixth of 13), 4.33 percent in the (ranking eighth of 123). Santa Cruz RMA (ranking eighth of 14), 4.15 percent in Santa Rosa 10. See 12 U.S.C. § 1815(d)(3)(E). RMA (ranking eighth of 26), 3.12 percent in the Stockton RMA 11. See 12 U.S.C. § 1842(d). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 565 This transaction may not be consummated before By order of the Board of Governors, effective the thirtieth calendar day after the effective date of April 18, 1994. this order, or later than three months after the effective date of this order, unless such period is Voting for this action: Chairman Greenspan and Governors Kelley, La Ware, Lindsey, and Phillips. extended by the Board, or by the Federal Reserve Bank of San Francisco acting pursuant to delegated JENNIFER J. JOHNSON authority. Associate Secretary of the Board 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 Interstate Bancorp, Far West Federal Savings First Interstate Bank April 15, 1994 Los Angeles, California Bank, of Oregon, N.A., Portland, Oregon Portland, Oregon Union Planters Corporation, Security Federal Savings First National Bank April 15, 1994 Memphis, Tennessee & Loan Association, of New Albany, Jackson, Mississippi New Albany, United Southern Bank, Mississippi Clarksdale, Mississippi 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 BancorpSouth, Incorporated, Security Federal Savings Bank of Mississippi, April 15, 1994 Tupelo, Mississippi and Loan Association, Tupelo, Mississippi Jackson, Mississippi Cascade Bancorp, Far West Federal Savings Bank of the Cascades, April 15, 1994 Bend, Oregon Bank, Bend, Oregon Portland, Oregon Citizens Holding Company, Security Federal Savings Citizens Bank of April 15, 1994 Philadelphia, Mississippi and Loan Association, Philadelphia, Jackson, Mississippi Philadelphia, Mississippi DFC Acquisition Corporation Farm & Home Savings Dickinson Financial April 11, 1994 Two, Association, Corporation, Kansas City, Missouri Nevada, Missouri Chillicothe, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 Federal Reserve Bulletin • June 1994 FDICIA—Continued Acquired Acquiring Approval Bank Holding Company Thrift Bank(s) Date Fifth Third Bancorp, Citizens Federal Bank, Fifth Third Bank of April 12, 1994 Cincinnati, Ohio Miami, Florida Southern Ohio, Hillsboro, Ohio Fifth Third Bank of Columbus, Columbus, Ohio First Bolivar Capital Security Federal Savings First National Bank April 15, 1994 Corporation, and Loan Association, of Bolivar County, Cleveland, Mississippi Jackson, Mississippi Cleveland, Mississippi First M & F Corporation, Security Federal Savings Merchants & Farmers April 15, 1994 Kosciusko, Mississippi and Loan Association, Bank, Jackson, Mississippi Kosciusko, Mississippi Fourth Financial Corporation, Equity Bank for Savings, Bank IV Oklahoma, April 14, 1994 Wichita, Kansas F.A., N.A., Oklahoma City, Tulsa, Oklahoma Oklahoma KeyCorp, Far West Federal Savings Key Bank of Oregon, April 15, 1994 Cleveland, Ohio Bank, Portland, Oregon Portland, Oregon The Peoples Holding Company, Security Federal Savings The Peoples Bank & April 15, 1994 Tupelo, Mississippi and Loan Association, Trust Company, Jackson, Mississippi Tupelo, Mississippi Planters Holding Company, Security Federal Savings Planters Bank & April 15, 1994 Indianola, Mississippi and Loan Association, Trust Company, Jackson, Mississippi Indianola, Mississippi 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 4 Effective Applicant(s) Bank(s) ^ Compass Bancshares, Inc. Anchor Savings Bank, FSB, April 14, 1994 Birmingham, Alabama Kneeled, New York Northern Trust Corporation, Hazlehurst & Associates, Inc., April 8, 1994 Chicago, Illinois Atlanta, Georgia Union Planters Corporation, BNF BANCORP, Inc., April 21, 1994 Memphis, Tennessee Decatur, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 567 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant(s) Bank(s) Bank Date Allendale Bancorp, Inc., First National Bank of St. Louis March 31, 1994 Allendale, Illinois Allendale, Allendale, Illinois AMBANC Corp., Lincolnland Bancshares, St. Louis April 11, 1994 Vincennes, Indiana Inc., Casey, Illinois American Bancshares American Savings Bank, Atlanta April 25, 1994 Corporation, Livingston, Tennessee Livingston, Tennessee Antioch Bancshares, Inc. Antioch Bancshares, Inc., Chicago April 15, 1994 Employee Savings and Stock Antioch, Illinois Ownership Plan, Antioch, Illinois Carlisle Bancshares, Inc., FirstBank of Arkansas, St. Louis April 1, 1994 Little Rock, Arkansas Brinkley, Arkansas Citizens Bank Group, Inc., Mapleton Bancshares, Inc., Minneapolis April 5, 1994 Minneapolis, Minnesota Mapleton, Minnesota ColoEast Bankshares, Inc., Granada Bankshares, Inc., Kansas City April 15, 1994 Lamar, Colorado Granada, Colorado Holly Bankshares, Inc., Holly, Colorado Commonwealth Community Miners and Merchants Richmond April 28, 1994 Bancorp, Inc., Bank and Trust Grundy, Virginia Company, Grundy, Virginia Community First Bancorp, Inc., Buffalo Bank Corporation, Kansas City April 25, 1994 Denver, Colorado Buffalo, Wyoming DuRoc Investment Company, State Bank of Table Rock, Kansas City April 20, 1994 Table Rock, Nebraska Table Rock, Nebraska First Alabama Bancshares, Inc., Guaranty Bancorp, Inc., Atlanta April 15, 1994 Birmingham, Alabama Baton Rouge, Louisiana First Chicago Corporation, Hampton Park Corporation, Chicago April 15, 1994 Chicago, Illinois Romeoville, Illinois First Chicago Corporation, Lake Shore Bancorp, Inc., Chicago April 15, 1994 Chicago, Illinois Chicago, Illinois First Community Banking Caddo Holding Company, St. Louis April 14, 1994 Corporation, Inc., Little Rock, Arkansas Glen wood, Arkansas First Financial Bancorp., First Clyde Banc Corp., Cleveland April 8, 1994 Hamilton, Ohio Clyde, Ohio Frandsen Financial Corporation, Warren Bancshares, Inc., Minneapolis April 4, 1994 Forest Lake, Minnesota Warren, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 Federal Reserve Bulletin • June 1994 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Hinton Financial Corporation, The First National Bank of Richmond April 1, 1994 Hinton, West Virginia Hinton, Hinton, West Virginia LS Bancorp, Inc., Community Bank of Utica, Chicago April 15, 1994 LaSalle, Illinois Utica, Illinois Pointe Financial Corporation, Flamingo Bank, Atlanta April 8, 1994 Boca Raton, Florida Pembroke Pines, Florida Salem Bancshares, Inc., Bank of Salem, St. Louis April 25, 1994 Salem, Missouri Salem, Missouri Section 4 Nonbanking Activity/ Reserve Effective Applicant(s) Company Bank Date Country Bancorp, Inc., to engage de novo in the St. Louis April 14, 1994 Litchfield, Illinois offering and sale, as agent, of fixed rate annuity products Kerndt Bank Services, Inc., Peters Insurance Agency, Chicago April 20, 1994 Lansing, Iowa Lansing, Iowa Pointe Financial Corporation, Pointe Federal Savings Atlanta April 8, 1994 Boca Raton, Florida Bank, Boca Raton, Florida United Bancorp of Kentucky, Computer Bank Services, Cleveland April 6, 1994 Lexington, Kentucky Inc., Lexington, Kentucky Sections 3 and 4 Reserve Effective Applicant(s) Bank(s) Bank Date CBT Corporation, BMC Bankcorp, Inc., St. Louis April 5, 1994 Paducah, Kentucky Benton, Kentucky Bank of Marshall County, Benton, Kentucky Graves County Bank, Inc., Wingo, Kentucky United Commonwealth Bank, FSB, Murray, Kentucky Republic Bancorp, Inc., Republic Bank of Shelby St. Louis April 7, 1994 Louisville, Kentucky County, Shelby ville, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 569 APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Reserve Effective Applicant(s) Bank(s) Bank Date Centura Bank, Mid-South Bank and Trust Richmond April 19, 1994 Rocky Mount, North Carolina Company, Sanford, North Carolina Fifth Third Bank, Citizens Federal Bank, Cleveland April 12, 1994 Cincinnati, Ohio Miami, Florida The Sun City Bank, First National Bank of San Francisco April 13, 1994 Sun City, Arizona Arizona, Phoenix, Arizona United Jersey Bank, United Jersey New York April 12, 1994 Hackensack, New Jersey Bank/Central, S.A., West Windsor Township, New Jersey United Jersey Bank/South, N.A., Cherry Hill, New Jersey PENDING CASES INVOLVING THE BOARD OF removal, prohibition, and civil money penalty order. GOVERNORS The Board's brief was filed on January 20, 1994. Scott v. Board of Governors, No. 930905843CV (Dist. This list of pending cases does not include suits Ct., Salt Lake County, Utah, filed October 8, 1993). against the Federal Reserve Banks in which the Board Action against Board and others for damages and of Governors is not named a party. injunctive relief for alleged constitutional and statutory violations caused by issuance of Federal Reserve notes. DLG Financial Corp. v. Board of Governors, No. Richardson v. Board of Governors, et al., No. 93-C 94-10078 (5th Cir., filed January 20, 1994). Appeal 836A (D. Utah, filed August 30, 1993). Action of district court dismissal of appellants' action to against Board and others for damages and injunctive enjoin the Board and the Federal Reserve Bank of relief for alleged constitutional and statutory viola- Dallas from taking certain enforcement actions, and tions caused by issuance of Federal Reserve notes. for money damages on a variety of tort and contract On December 16, 1993, the District Court granted theories. The case has been consolidated on appeal the Board's motion to dismiss. On January 14, 1994, with Board of Governors v. DLG Financial Corp., plaintiff filed a notice of appeal. Nos. 93-2944 and 94-20013 (5th Cir., filed Decem- Jackson v. Board of Governors, No. CV-N-93-401ber 14, 1993 and December 31, 1993), an appeal of ECR (D. Nev., filed June 14, 1993). Pro se action for a temporary restraining order and a preliminary violation of a prisoner's civil rights. On Noveminjunction obtained by the Board freezing assets of ber 26, 1993, the Board filed a motion to dismiss. a corporation and an individual pending adminis- First National Bank ofBellaire v. Board of Governors, trative adjudication of civil money penalty assess- No. H-93-1708 (S.D. Texas, filed June 8, 1993). ments by the Board. Appellants' brief was filed on Action to enjoin possible enforcement actions by March 21, 1994. Oral argument on the consolidated Board of Governors and other bank regulatory agenappeal is scheduled for June 1, 1994. cies. On March 8, 1994, the district court granted the Board of Governors v. Oppegard, No. 93-3706 (8th agencies' motion to dismiss; plaintiff's motion for Cir., filed November 1, 1993). Appeal of district reconsideration was filed March 22, 1994. court order ordering appellant Oppegard to comply Kubany v. Board of Governors, et al., No. 93-1428 with prior order requiring compliance with Board (D. D.C., filed July 9, 1993). Action challenging Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 Federal Reserve Bulletin • June 1994 Board determination under the Freedom of Informa- and Albert D. Noe, former directors of Dyer F&M tion Act. The Board's motion to dismiss was filed on Bancshares, Inc., Dyer, Tennessee. October 15, 1993. Bennett v. Greenspan, No. 93-1813 (D. D.C., filed April 20, 1993). Employment discrimination action. TERMINATION OF ENFORCEMENT ACTIONS Amann v. Prudential Home Mortgage Co., et al., No. The Federal Reserve Board announced on April 4, 93-10320 WD (D. Massachusetts, filed February 12, 1994, the termination of the following enforcement 1993). Action for fraud and breach of contract arising out of a home mortgage. On April 17, 1993, actions: the Board filed a motion to dismiss. First State Bancorp Adams v. Greenspan, No. 93-0167 (D. D.C., filed Howell, New Jersey January 27, 1993). Action by former employee under the Civil Rights Act of 1964 and the Rehabilitation Written Agreement dated September 16, 1992, termi- Act of 1973 concerning termination of employment. nated February 16, 1994. The Board's motion for partial summary judgment was filed on January 4, 1994. Home Port Bancorp, Inc. CBC, Inc. v. Board of Governors, No. 93-1458 (U.S. Nantucket, Massachusetts Supreme Court, filed March 17, 1994). Petition for review of civil money penalty assessment against a Written Agreement dated August 3, 1992, terminated bank holding company and three of its officers and March 1, 1994. directors for failure to comply with reporting requirements. On November 30, 1993, the Court of Appeals The Buffalo Bank for the 10th Circuit denied the petition for review. On Eleanor, West Virginia March 17, 1994, CBC filed a petition for certiorari. Zemel v. Board of Governors, No. 92-1056 (D. D.C., Written Agreement dated January 31,1991, terminated filed May 4, 1992). Age Discrimination in Employ- March 3, 1994. ment Act case. The parties' cross-motions for summary judgment are pending. Citizens First Bancorp, Inc. Board of Governors v. Ghaith R. Pharaon, No. 91- Glen Rock, New Jersey CIV-6250 (S.D. New York, filed September 17, 1991). Action to freeze assets of individual pending Written Agreement dated December 18, 1990, termiadministrative adjudication of civil money penalty nated March 15, 1994. assessment by the Board. On September 17, 1991, the court issued an order temporarily restraining the Midlantic Corporation transfer or disposition of the individual's assets. Edison, New Jersey Written Agreement dated May 16, 1991, terminated March 17, 1994. FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD OF GOVERNORS People's Mutual Holdings, Inc. Bridgeport, Connecticut Garry L. Carroll Dyer, Tennessee Written Agreement dated October 22, 1992, terminated March 30, 1994. The Federal Reserve Board announced on April 4, 1994, the issuance of an Order of Prohibition against Garry L. Carroll, a former institution-affiliated party of WRITTEN AGREEMENTS APPROVED BY FEDERAL Dyer F&M Bancshares, Inc., and Farmers & Mer- RESERVE BANKS chants Bank, Dyer, Tennessee. West Coast Bancorp Michael D. Johnson and Albert D. Noe Newport Beach, California Dyer, Tennessee The Federal Reserve Board announced on April 18, The Federal Reserve Board announced on April 29, 1994, the execution of a Written Agreement between 1994, the issuance of combined Orders to Cease and the Federal Reserve Bank of San Francisco and West Desist and of Prohibition against Michael D. Johnson Coast Bancorp, Newport Beach, California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities A3 Guide to Tabular Presentation A21 Large reporting banks A23 Branches and agencies of foreign banks Domestic Financial Statistics FINANCIAL MARKETS MONEY STOCK AND BANK CREDIT 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 A26 Interest rates—money and capital markets A6 Reserves and borrowings—Depository A27 Stock market—Selected statistics institutions 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— A35 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 • June 1994 Domestic Financial Statistics—Continued A54 U.S. reserve assets A54 Foreign official assets held at Federal Reserve REAL ESTATE Banks A55 Selected U.S. liabilities to foreign official A3 7 Mortgage markets institutions A3 8 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A55 Liabilities to and claims on foreigners A39 Total outstanding A56 Liabilities to foreigners A39 Terms A58 Banks' own claims on foreigners A59 Banks' own and domestic customers' claims on foreigners FLOW OF FUNDS A59 Banks' own claims on unaffiliated foreigners A60 Claims on foreign countries—Combined A40 Funds raised in U.S. credit markets domestic offices and foreign branches A42 Summary of financial transactions A43 Summary of credit market debt outstanding A44 Summary of financial assets and liabilities REPORTED BYNONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES Domestic Nonfinancial Statistics A61 Liabilities to unaffiliated foreigners A62 Claims on unaffiliated foreigners SELECTED MEASURES SECURITIES HOLDINGS AND TRANSACTIONS A45 Nonfinancial business activity—Selected measures A63 Foreign transactions in securities A45 Labor force, employment, and unemployment A64 Marketable U.S. Treasury bonds and A46 Output, capacity, and capacity utilization notes—Foreign transactions A47 Industrial production—Indexes and gross value A49 Housing and construction A50 Consumer and producer prices INTEREST AND EXCHANGE RATES A51 Gross domestic product and income A52 Personal income and saving A65 Discount rates of foreign central banks A65 Foreign short-term interest rates A66 Foreign exchange rates International Statistics A67 Guide to Statistical Releases and Special Tables SUMMARY STATISTICS A53 U.S. international transactions—Summary A54 U.S. foreign trade Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GNMA Government National Mortgage Association n.a. Not available GDP Gross domestic product n.e.c. Not elsewhere classified HUD Department of Housing and Urban p Preliminary Development r Revised (Notation appears on column heading IMF International Monetary Fund when about half of the figures in that column IO Interest only are changed.) IPCs Individuals, partnerships, and corporations * Amounts insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is millions) 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 NonfinancialS tatistics • June 1994 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1993 1994 1993 1994 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q2 Q3 Q4r Ql Nov. Dec.r Jan.r Feb.r Mar. Reserves of depository institutions2 1 Total 10.4r 12.5r 14.2 3.1 11.5r 3.1 2.5 3.2 -3.4 2 Required n.tf 12.4r 14.1 2.5 11.4r 3.9 -5.2 9.5 .1 3 Nonborrowed 10.2r lLC 15.6 3.7 15.5r 3.2 2.7 3.3 -3.1 4 Monetary base3 io. r 10.6 9.8 10.2 8.3r 5.7 11.7 13.4 9.3 Concepts of money, liquid assets, and debt4 5 Ml 10.7 12.0 9.4 6.0 9.7 6.4 5.4 5.3 4.2 6 M2 2.2 2.4 1.9 2.0 3.8r 2.3 2.1 -1.2 5.4 7 M3 2.1 1.0 2.2 .0 3.5r 3.4 1.0 -7.9 2.5 8 L 3.1 .9 1.6 n.a. 2.7 4.4 4.0 -2.3 n.a. 9 Debt 4.5 5.7 5.2 n.a. 6.2 7.5 5.1 4.8 n.a. Nontransaction components 10 In M25 -1.4 -1.7 -1.4 .1 1.0r .4 .6 -4.2 6.0 11 In M3 only6 1.6 -6.7r 3.7 -10,8 2.2r 9.3 -5.1 -44.4 -13.8 Time and savings deposits Commercial banks 12 Savings, including MMDAs 5.1 4.9 3.6 4.4 6.2 4.4 7.3 1.5 -.6 13 Smalltime7. -9.2 -10.6 -7.4 -5.2 -7.4 -2.6 -7.7 -3.9 -3.9 14 Large time8, -.7r -7.7r -.5 -3.3 -8.6r 4.8 9.1 -24.1 -9.7 Thrift institutions 15 Savings, including MMDAs .7 2.3 -.4 .6 -2.5 2.0 .0 -.8 5.9 16 Small time -11.9 -14.4 -11.9 -11.1 -9.3 -15.8 -9.9 -12.3 -5.4 17 Large time8'9 -8.5 -4.5 -6.7 -9.3 -3.8 -32.1 3.9 -5.8 -15.6 Money market mutual funds 18 General purpose and broker-dealer .2 -1.8 1.2 .0 9.1r 6.2 -3.4 -14.1 17.1 19 Institution-only -2.2 -10.5 8.8 -26.7 3.1 13.6 -26.2 -98.4 3.4 Debt components4 20 Federal 10.4 9.2 5.5 n.a. 9.2 13.3 2.8 4.9 n.a. 21 Nonfederal 2.4 4.5 5.1 n.a. 5.1 5.4 6.0 4.7 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 Ml. excluding those booked at international banking facilities. M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of 9. Large time deposits at commercial banks less those held by money market $100,000 or more) issued by all depository institutions, (2) term Eurodollars held funds, depository institutions, U.S. government and foreign banks and official by U.S. residents at foreign branches of U.S. banks worldwide and at all banking institutions. offices in the United Kingdom and Canada, and (3) balances in both taxable and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1 Millions of dollars d A ai v ly e ra f g ig e u o re f s Average of daily figures for week ending on date indicated 1994 1994 Jan. Feb. Mar. Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 374,433 373,196r 375,629 371,529 372,723r 376,109 374,302 375,627 375,369 375,883 U.S. government securities 2 Bought outright—System account 332,463 332,397 335,371 331,708 332,277 333,050 333,846 334,014 336,682 337,265 3 Held under repurchase agreements ... 2,429 2,565 2,721 886 3,364 5,400 2,639 4,494 1,293 1,145 Federal agency obligations 4 Bought outright 4,510 4,401 4,235 4,413 4,382 4,314 4,237 4,237 4,237 4,228 5 Held under repurchase agreements ... 267 214 261 95 275 305 238 291 236 173 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 86 56 41 130 31 29 9 35 24 48 8 Seasonal credit 14 15 24 15 15 15 15 18 27 37 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 1,963 l,226r 585 1,692 85 lr 1,066 1,354 269 342 281 11 Other Federal Reserve assets 32,702 32,323 32,391 32,589 31,528 31,931 31,964 32,268 32,529 32,705 12 Gold stock 11,053 11,053 11,053 11,053 11,053 11,053 11,053 11,053 11,052 11,052 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 22,130 22,200r 22,265 22,196r 22,214r 22,232 22,246 22,260 22,274 22,288 ABSORBING RESERVE FUNDS 15 Currency in circulation 362,849 363,796r 366,753 363,965r 364,917r 365,009 365,811 366,654 366,961 367,541 16 Treasury cash holdings 401 372 377 372 373 366 375 378 382 374 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,523 6,263 5,122 4,691 5,985 4,435 5,222 5,463 4,971 4,847 18 Foreign 252 260 189 307 261 174 193 171 176 185 19 Service-related balances and adjustments 6,859 6,988 6,565 7,183 6,544 7,226 6,386 6,742 6,654 6,334 20 Other 288 313 358 315 312 339 363 354 3% 313 21 Other Federal Reserve liabilities and capital 9,629 9,784 10,066 9,860 9,826 10,029 10,167 10,015 9,982 9,970 22 Reserve balances with Federal Reserve Banks 27,834 26,691r 27,535 26,103 25,789r 29,835 27,101 27,181 27,191 27,676 End-of-month figures Wednesday figures Jan. Feb. Mar. Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 382,176 375,262r 381,283 370,332 378,365r 378,379 374,479 378,908 378,932 380,313 U.S. government securities 2 Bought outright—System account 331,995 333,404 337,260 331,286 335,098 333,420 333,803 335,800 336,824 337,620 3 Held under repurchase agreements ... 8,657 4,925 5,300 2,698 3,449 6,854 3,174 5,729 3,725 4,634 Federal agency obligations 4 Bought outright 4,437 4,335 4,227 4,382 4,382 4,237 4,237 4,237 4,237 4,227 5 Held under repurchase agreements ... 519 160 150 452 230 815 555 505 550 510 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 109 34 426 31 9 17 5 99 24 37 8 Seasonal credit 12 14 37 15 16 16 15 19 37 37 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 2,453 382r 459 146 3,732r 742 469 129 672 243 11 Other Federal Reserve assets 33,993 32,008 33,424 31,322 31,448 32,278 32,220 32,389 32,863 33,004 12 Gold stock 11,053 11,053 11,052 11,053 11,053 11,053 11,053 11,053 11,052 11,052 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 22,160 22,232r 22,302 22,196r 22,214r 22,232 22,246 22,260 22,274 22,288 ABSORBING RESERVE FUNDS 15 Currency in circulation 360,919 364,947r 369,016 364,761r 365,827r 365,876 367,063 367,503 367,748 369,184 16 Treasury cash holdings 378 365 370 374 365 374 379 383 375 370 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 21,541 4,886 6,181 2,953 4,920 4,369 4,722 8,193 3,952 5,562 18 Foreign 257 191 454 385 189 159 204 173 187 198 19 Service-related balances and adjustments 6,697 7,226 6,235 7,183 6,544 7,226 6,386 6,742 6,654 6,334 20 Other 255 373 316 324 307 393 345 382 513 300 21 Other Federal Reserve liabilities and capital 9,759 10,337 10,618 9,697 9,705 10,122 9,703 9,820 9,835 9,835 22 Reserve balances with Federal Reserve Banks 23,601 28,240r 29,466 25,922 31,792r 31,163 26,992 27,042 31,013 29,888 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 NonfinancialS tatistics • June 1994 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages Reserve classification 1991 1993 Dec. Sept. Oct. Dec. Feb. Mar. 1 Reserve balances with Reserve Banks2 26,659 25,368 29,374 27,274 28,297 29,018 29,374 27,817 26,922r 27,397 2 Total vault cash3 32,509 34,542 36,812 35,220 35,184 35,655 36,812 37,907 36,295 35,585 3 Applied vault cash , 28,872 31,172 33,484 31,863 31,739 32,278 33,484 34,254 32,671 32,208 4 Surplus vault cash5 3,637 3,370 3,328 3,357 3,445 3,377 3,328 3,653 3,624 3,377 5 Total reserves 55,532 56,540 62,858 59,136 60,036 61,296 62,858 62,072 59,593r 59,605 6 Required reserves 54,553 55,385 61,795 58,046 58,947 60,195 61,795 60,624 58,454r 58,642 7 Excess reserve balances at Reserve Banks' 979 1,155 1,063 1,090 1,089 1,101 1,063 1,448 1.14C 963 8 Total borrowings at Reserve Banks8 192 124 82 428 285 89 82 73 70 55 1 9 0 E Se x a te so n n d a e l d b c o r r e r d o i w t9 i ngs 38 1 181 3 0 1 23 0 6 19 0 2 7 0 5 3 0 1 1 0 5 1 0 5 2 0 4 Biweekly averages of daily figures for weeks ending on date indicated 1993 1994 Dec. 8 Dec. 22 Jan. 5 Jan. 19 Feb. 2 Feb. 16 Mar. 2 Mar. 16 Mar. 30 Apr. 13 1 Reserve balances with Reserve Banks 28,999 28,950 30,367 28,745 25,672 26,339 27,81lr 27,139 27,434 29,663 2 Total vault cash3 36,494 37,202 36,489 38,241 38,108 37,475 34,617 36,654 34,667 35,434 3 Applied vault cash 33,125 33,821 33,279 34,691 34,152 33,651 31,282 33,105 31,440 32,267 4 Surplus vault cash 3,369 3,381 3,210 3,550 3,957 3,824 3,335 3,549 3,227 3,167 5 Total reserves 62,124 62,771 63,646 63,435 59,824 59,989 59,093r 60,244 58,874 61,929 6 Required reserves 60,962 61,880 62,405 61,759 58,557 58,878 57,942r 59,192 58,023 61,023 7 Excess reserve balances at Reserve Banks ... 1,162 891 1,241 1,676 1,267 1,112 l,151r 1,052 851 906 8 Total borrowings at Reserve Banks8 56 59 142 74 45 95 45 39 68 125 9 Seasonal borrowings 43 34 16 11 18 15 15 17 32 40 10 Extended credit 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical institutions (that is, those whose vault cash exceeds their required reserves) to release. For ordering address, see inside front cover. satisfy current reserve requirements. 2. Excludes required clearing balances and adjustments to compensate for float 5. Total vault cash (line 2) less applied vault cash (line 3). and includes other off-balance-sheet "as-of' adjustments. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 3. Total "lagged" vault cash held by depository institutions subject to reserve (line 3). requirements. Dates refer to the maintenance periods during which the vault cash 7. Total reserves (line 5) less required reserves (line 6). can be used to satisfy reserve requirements. The maintenance period for weekly 8. Also includes adjustment credit. reporters ends sixteen days after the lagged computation period during which the 9. Consists of borrowing at the discount window under the terms and condivault cash is held. Before Nov. 25,1992, the maintenance period ended thirty days tions established for the extended credit program to help depository institutions after the lagged computation period. deal with sustained liquidity pressures. Because there is not the same need to 4. All vault cash held during the lagged computation period by "bound" repay such borrowing promptly as with traditional short-term adjustment credit, institutions (that is, those whose required reserves exceed their vault cash) plus the money market impact of extended credit is similar to that of nonborrowed the amount of vault cash applied during the maintenance period by "nonbound" reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1994, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 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 68,093 70,698 68,647 69,380 67,817 72,061 70,228 66,607 64,511 2 For all other maturities 13,283 13,412 1133,,221166 1122,,339944 12,273 1111,,222277 1122,,339933 12,080 11,902 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 18,438 21,005 19,805 21,562 22,806 25,708 24,179 26,751 27,318 4 For all other maturities 17,826 17,033 17,192 16,883 17,384 18,524 20,512 17,679 18,003 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 16,634 17,903 21,082 19,800 19,883 23,111 26,200 26,058 23,828 6 For all other maturities 32,764 30,461 31,191 29,355 31,065 30,796 33,244 32,636 32,874 All other customers 7 For one day or under continuing contract 33,268 30,489 29,660 30,076 30,743 30,570 30,966 30,044 30,789 8 For all other maturities 16,856 16,281 17,279 18,224 17,615 17,038 17,372 16,986 16,946 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 46,844 47,399 44,030 43,221 41,945 44,037 42,657 43,880 44,544 10 To all other specified customers 28,735 29,225 24,482 24,542 24,834 25,409 25,143 24,335 23,888 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, Data in this table also appear in the Board's H.5 (507) weekly statistical release. foreign banks and official institutions, and U.S. government agencies. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • June 1994 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 5/ O 2/ n 9 4 Effective date Previous rate 5/ O 2/ n 9 4 Effective date Previous rate 5/ O 2/ n 9 4 Effective date Previous rate Boston 3 7/2/92 3.5 3.8 4/28/94 3.7 4.3 4/28/94 4.2 New York 7/2/92 4/28/94 4/28/94 Philadelphia 7/2/92 4/28/94 4/28/94 Cleveland 7/6/92 4/28/94 4/28/94 Richmond 7/2/92 4/28/94 4/28/94 Atlanta 7/2/92 4/28/94 4/28/94 Chicago 7/2/92 4/28/94 4/28/94 St. Louis 7/7/92 4/28/94 4/28/94 Minneapolis 7/2/92 4/28/94 4/28/94 Kansas City 7/2/92 4/28/94 4/28/94 Dallas 7/2/92 4/28/94 4/28/94 San Francisco ... 3 7/2/92 3.5 3.8 4/28/94 3.7 4.3 4/28/94 4.2 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o a f n k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 6 6 1981-—May 5 13-14 14 1986—Aug. 21 5.5-6 5.5 14 14 22 5.5 5.5 1978—Jan. 9 6-6.5 6.5 Nov. ? 13-14 13 20 6.5 6.5 6 13 13 1987—Sept. 4 5.5-6 6 MMaayy 11 6.5-7 7 Dec. 4 12 12 11 6 6 12 7 7 JJuullyy 3 7-7.25 7.25 1982--July 70 11.5-12 11.5 1988—Aug. 9 6-6.5 6.5 10 7.25 7.25 73 11.5 11.5 11 6.5 6.5 Aug. 21 7.75 7.75 Aug. ? 11-11.5 11 Sept. 22 8 8 3 11 11 1989—Feb. 24 6.5-7 7 Oct. 16 8-8.5 8.5 16 10.5 10.5 7 7 20 8.5 8.5 77 10-10.5 10 27 Nov. 1 8.5-9.5 9.5 30 10 10 6.5 6.5 3 9.5 9.5 Oct. 1? 9.5-10 9.5 1990—Dec. 19 n 9.5 9.5 6-6.5 6 1979—July 20 10 10 Nov. ?? 9-9.5 9 1991—Feb. 1 6 6 AAuugg.. 17 10-10.5 10.5 76 9 9 4 5.5-6 5.5 20 10.5 10.5 Dec. 14 8.5-9 9 Apr. 30 5.5 5.5 SSeepptt.. 19 10.5-11 11 15 8.5-9 8.5 May 2 5-5.5 5 21 11 11 17 8.5 8.5 Sept. 13 5 5 Oct. 8 11-12 12 17 4.5-5 4.5 10 12 12 1984-——AApprr.. 9 8.5-9 9 Nov. 6 4.5 4.5 13 9 9 7 3.5-4.5 3.5 1980—Feb. 15 12-13 13 Nov. 71 8.5-9 8.5 Dec. 20 3.5 3.5 19 13 13 76 8.5 8.5 24 MMaayy 29 12-13 13 Dec. 74 1992—July 2 3-3.5 3 30 12 12 7 3 3 June 13 11-12 11 1985-——MMaayy 7.0 7.5-8 7.5 16 11 11 74 7.5 7.5 29 10 10 In effect May 2, 1994 3 3 July 28 10-11 10 1986-—Mar. 7 7-7.5 7 Sept. 26 11 11 10 7 7 Nov. 17 12 12 Apr. 71 6.5-7 6.5 Dec. 5 12-13 13 July 11 6 6 1. Available on a short-term basis to help depository institutions meet tempo- ordinarily is charged on extended-credit loans outstanding less than thirty days; rary needs for funds that cannot be met through reasonable alternative sources. however, at the discretion of the Federal Reserve Bank, this time period may be The highest rate established for loans to depository institutions may be charged on shortened. Beyond this initial period, a flexible rate somewhat above rates on adjustment-credit loans of unusual size that result from a major operating problem market sources of funds is charged. The rate ordinarily is reestablished on the first at the borrower's facility. business day of each two-week reserve maintenance period, but it is never less 2. Available to help relatively small depository institutions meet regular than the discount rate applicable to adjustment credit plus 50 basis points. seasonal needs for funds that arise from a clear pattern of intrayearly movements 4. For earlier data, see the following publications of the Board of Governors: in their deposits and loans and that cannot be met through special industry Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual lenders. The discount rate on seasonal credit takes into account rates on market Statistical Digest, 1970-1979. sources of funds and ordinarily is reestablished on the first business day of each In 1980 and 1981, the Federal Reserve applied a surcharge to short-term two-week reserve maintenance period; however, it is never less than the discount adjustment-credit borrowings by institutions with deposits of $500 million or more rate applicable to adjustment credit. that had borrowed in successive weeks or in more than four weeks in a calendar 3. May be made available to depository institutions when similar assistance is quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, not reasonably available from other sources, including special industry lenders. 1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge Such credit may be provided when exceptional circumstances (including sus- was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5, tained deposit drains, impaired access to money market funds, or sudden 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 deterioration in loan repayment performance) or practices involve only a partic- percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the ular institution, or to meet the needs of institutions experiencing difficulties surcharge was changed from a calendar quarter to a moving thirteen-week period. adjusting to changing market conditions over a longer period (particularly at times The surcharge was eliminated on Nov. 17, 1981. of deposit disintermediation). The discount rate applicable to adjustment credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Type of deposit2 Net transaction accounts 1 $0 million-$51.9 million... 12/21/93 2 More than $51.9 million4.. 12/21/93 3 Nonpersonal time deposits5 12/27/90 4 Eurocurrency liabilities6. . 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve automatic, or other transfers per month, of which no more than three may be Banks or vault cash. Nonmember institutions may maintain reserve balances with checks. Accounts subject to such limits are savings deposits. a Federal Reserve Bank indirectly on a pass-through basis with certain approved The Monetary Control Act of 1980 requires that the amount of transaction institutions. For previous reserve requirements, see earlier editions of the Annual accounts against which the 3 percent reserve requirement applies be modified Report or the Federal Reserve Bulletin. Under provisions of the Monetary annually by 80 percent of the percentage change in transaction accounts held by Control Act, depository institutions include commercial banks, mutual savings all depository institutions, determined as of June 30 each year. Effective Dec. 21, banks, savings and loan associations, credit unions, agencies and branches of 1993, for institutions reporting quarterly and weekly, the amount was increased foreign banks, and Edge Act corporations. from $46.8 million to $51.9 million. 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 4. The reserve requirement was reduced from 12 percent to 10 percent on 97-320) requires that $2 million of reservable liabilities of each depository Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institution be subject to a zero percent reserve requirement. The Board is to adjust institutions that report quarterly. the amount of reservable liabilities subject to this zero percent reserve require- 5. For institutions that report weekly, the reserve requirement on nonpersonal ment each year for the succeeding calendar year by 80 percent of the percentage time deposits with an original maturity of less than 1 Vi years was reduced from 3 increase in the total reservable liabilities of all depository institutions, measured percent to IVi percent for the maintenance period that began Dec. 13, 1990, and on an annual basis as of June 30. No corresponding adjustment is to be made in to zero for the maintenance period that began Dec. 27, 1990. The reserve the event of a decrease. On Dec. 21, 1993, the exemption was raised from $3.8 requirement on nonpersonal time deposits with an original maturity of 1 Vi years million to $4.0 million. The exemption applies in the following order: (1) net or more has been zero since Oct. 6, 1983. negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable For institutions that report quarterly, the reserve requirement on nonpersonal deductions); and (2) net other transaction accounts. The exemption applies only to time deposits with an original maturity of less than 1 Vi years was reduced from 3 accounts that would be subject to a 3 percent reserve requirement. percent to zero on Jan. 17, 1991. 3. Includes all deposits against which the account holder is permitted to make 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 withdrawals by negotiable or transferable instruments, payment orders of with- percent to zero in the same manner and on the same dates as was the reserve drawal, and telephone and preauthorized transfers for the purpose of making requirement on nonpersonal time deposits with an original maturity of less than payments to third persons or others, other than money market deposit accounts IVi years (see note 5). (MMDAs) and similar accounts that permit no more than six preauthorized, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancialS tatistics • June 1994 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1993 1994 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999911 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 20,158 14,714 17,717 902 366 1,396 5,911 1,394 0 1,264 2 Gross sales 120 1,628 0 0 0 0 0 0 0 0 3 Exchanges 277,314 308,699 332,229 27,775 31,128 25,783 27,641 33,536 28,986 28,709 4 Redemptions 1,000 1,600 468 0 0 468 0 0 0 0 Others within one year 5 Gross purchases 3,043 1,0% 1,223 100 411 0 0 189 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 24,454 36,662 31,368 1,497 3,074 913 5,158 2,910 0 0 8 Exchanges -28,090 -30,543 -36,582 -5,491 -1,861 -1,566 -7,641 -2,910 0 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 1,100 2,400 0 100 2,619 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shifts -21,211 -34,478 -27,140 -834 -3,074 -31 -4,689 -2,910 0 0 13 Exchanges 24,594 25,811 0 3,866 1,861 1,566 55,,334411 22,,991100 0 0 Five to ten years 14 Gross purchases 1,280 2,818 4,168 500 797 0 0 1,008 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shifts -2,037 -1,915 0 -432 0 -882 -272 0 0 0 17 Exchanges 2,894 3,532 0 1,100 0 0 22,,330000 0 0 0 More than ten years 18 Gross purchases 375 2,333 3,457 100 717 0 0 826 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,209 -269 0 -231 0 0 -197 0 0 0 21 Exchanges 600 1,200 0 525 0 0 0 0 0 0 All maturities 22 Gross purchases 31,439 34,079 36,915 2,702 4,691 1,396 6,011 6,035 0 1,264 23 Gross sales 120 1,628 0 0 0 0 0 0 0 0 24 Redemptions 1,000 1,600 468 0 0 468 0 0 616 0 Matched transactions 25 Gross sales 1,570,456 1,482,467 1,475,085 136,037 124,898 115,160 109,941 137,645 132,872 124,125 26 Gross purchases 1,571,534 1,480,140 1,475,941 135,705 122,578 112,837 112,772 136,821 133,468 124,270 Repurchase agreements 27 Gross purchases 310,084 378,374 475,447 53,053 62,905 27,693 38,493 33,751 25,818 33,693 28 Gross sales 311,752 386,257 470,723 48,263 61,399 30,397 34,072 29,577 29,348 37,425 29 Net change in U.S. Treasury securities 29,729 20,642 42,027 7,160 3,878 -4,099 13,263 9,386 -3,550 -2,323 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 1,072 125 35 70 15 81 202 102 Repurchase agreements 33 Gross purchases 22,807 14,565 35,063 2,485 9,810 3,812 2,841 2,211 2,600 3,277 34 Gross sales 23,595 14,486 34,669 2,415 7,734 5,509 2,861 1,615 3,106 3,636 35 Net change in federal agency obligations -1,085 -554 -678 -55 2,041 -1,767 -35 515 -708 -461 36 Total net change in System Open Market Account 28,644 20,089 41,348 7,105 5,919 —5,866 13,228 9,901 -4,258 -2,784 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 1994 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Jan. 31 Feb. 28 Mar. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,053 11,053 11,053 11,052 11,052 11,053 11,053 11,052 2 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 3 Coin 439 437 440 437 431 439 446 435 Loans 4 To depository institutions 33 20 118 61 75 122 48 463 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 4,237 4,237 4,237 4,237 4,227 4,437 4,335 44,,222277 8 Held under repurchase agreements 815 555 505 550 510 519 160 150 9 Total U.S. Treasury securities 340,274 336,977 341,529 340,549 342,254 340,652 338,329 342,560 10 Bought outright2 333,420 333,803 335,800 336,824 337,620 331,995 333,404 337,260 11 Bills 162,388 162,771 164,768 162,511 163,307 160,963 162,372 162,947 12 Notes 131,311 131,311 131,311 133,858 133,858 131,460 131,311 133,858 13 Bonds 39,721 39,721 39,721 40,455 40,455 39,572 39,721 40,455 14 Held under repurchase agreements 6,854 3,174 5,729 3,725 4,634 8,657 4,925 5,300 15 Total loans and securities 345,359 341,789 346,389 345,397 347,066 345,729 342,872 347,400 16 Items in process of collection 7,178 6,046 6,232 5,180 5,202 4,326 2,435 4,735 17 Bank premises 1,054 1,054 1,054 1,055 1,054 1,054 1,053 1,054 Other assets 18 Denominated in foreign currencies3 22,775 22,689 22,603 22,622 22,640 22,336 22,769 23,297 19 All other4 8,463 8,404 8,724 9,163 9,283 10,550 8,209 9,021 20 Total assets 404,339 399,489 404,514 402,924 404,746 403,505 396,855 405,013 LIABILITIES 21 Federal Reserve notes 344,458 345,634 346,067 346,285 347,697 339,575 343,526 347,520 22 Total deposits 43,577 38,982 43,061 42,034 42,386 52,284 41,244 42,683 23 Depository institutions 38,656 33,711 34,316 37,382 36,329 30,232 35,794 35,733 24 U.S. Treasury—General account 4,369 4,722 8,193 3,952 5,562 21,541 4,886 6,181 25 Foreign—Official accounts 159 204 173 187 198 257 191 454 26 Other 393 345 382 513 300 255 373 316 27 Deferred credit items 6,182 5,171 5,567 4,769 4,829 1,887 1,748 4,192 28 Other liabilities and accrued dividends5 2,549 2,486 2,619 2,609 2,625 2,462 2,514 2,684 29 Total liabilities 396,765 392,273 397,313 395,698 397,537 396,208 389,031 397,080 CAPITAL ACCOUNTS 30 Capital paid in 3,439 3,440 3,441 3,441 3,445 3,404 3,437 3,445 31 Surplus 3,401 3,401 3,401 3,401 3,401 3,401 3,401 3,401 32 Other capital accounts 733 375 359 383 364 492 985 1,088 33 Total liabilities and capital accounts 404,339 399,489 404,514 402,924 404,746 403,505 396,855 405,013 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 364,925 364,648 369,072 367,270 n.a 358,003 364,104 n.a Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 412,317 412,828 413,337 413,665 414,413 410,368 411,834 414,534 36 LESS: Held by Federal Reserve Banks 67,859 67,194 67,271 67,380 66,716 70,793 68,308 67,014 37 Federal Reserve notes, net 344,458 345,634 346,067 346,285 347,697 339,575 343,526 347,520 Collateral held against notes, net: 38 Gold certificate account 11,053 11,053 11,053 11,052 11,052 11,053 11,053 11,052 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 325,387 326,563 326,996 327,215 328,627 320,504 324,455 328,450 42 Total collateral 344,458 345,634 346,067 346,285 347,697 339,575 343,526 347,520 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 • June 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 1994 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Jan. 31 Feb. 28 Mar. 31 1 Total loans 33 20 118 61 75 122 48 463 2 Within fifteen days1 27 13 113 53 71 121 45 445 3 Sixteen days to ninety days 6 7 6 8 4 11 3 18 4 Ninety-one days to one year 0 0 0 0 0 00 0 0 5 Total acceptances 0 0 0 0 0 0 0 0 6 Within fifteen days1 0 0 0 0 0 0 0 0 7 Sixteen days to ninety days 0 0 0 0 0 0 0 0 8 Ninety-one days to one year 0 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 340,274 336,977 341,529 340,549 342,253 331,995 333,404 337,260 10 Within fifteen days' 21,405 17,486 21,900 21,453 23,556 12,028 9,168 9,213 11 Sixteen days to ninety days 80,174 84,636 81,119 77,477 77,339 79,687 84,699 77,058 12 Ninety-one days to one year 105,159 101,319 104,974 104,949 104,689 104,666 106,001 112,661 13 One year to five years 77,654 77,654 77,654 79,435 79,435 79,992 77,654 81,093 14 Five years to ten years 23,818 23,818 23,817 24,553 24,553 23,884 23,818 24,553 15 More than ten years 32,064 32,064 32,064 32,682 32,682 31,739 32,064 32,682 16 Total federal agency obligations 5,052 4,792 4,742 4,787 4,837 4,437 4,335 4,227 17 Within fifteen days" 815 555 515 770 935 105 318 325 18 Sixteen days to ninety days 565 806 820 610 527 754 565 527 19 Ninety-one days to one year 1,174 933 909 909 960 969 954 960 20 One year to five years 1,921 1,921 1,9% 1,996 1,913 2,016 1,921 1,913 21 Five years to ten years 552 552 477 477 477 567 552 477 22 More than ten years 25 25 25 25 25 25 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 1993r 1994 IItteemm DD 1199 ee 99 cc 00 .. DD 1199 ee 99 cc 11 .. DD 1199 ee 99 cc 22 .. DD 1199 ee 99 cc 33 ..rr Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Seasonally adjusted AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS2222 1111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss3333 41.77 45.53 54.34r 60.48 58.01 58.81 59.75 60.32 60.48 60.60" 60.76 60.59 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss4444 41.44 45.34 54.22r 60.39 57.66 58.39 59.46 60.23 60.39 60.53r 60.69 60.53 3333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 41.47r 45.34 54.22r 60.39 57.66 58.39 59.46 60.23 60.39 60.53r 60.69 60.53 4444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 40. llr 44.55r 53.19r 59.41 57.06 57.72 58.66 59.22 59.41 59.16r 59.62 59.63 5555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee6666 293.16 317.12 350.61r 385.86 374.34 378.08 381.40 384.03 385.86 389.61r 393.96 397.01 Not seasonally adjusted 6666 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss7777 43.07 46.98 56.06 62.37 57.34 58.65 59.48 60.67 62.37 62.04r 59.53 59.50 7777 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 42.74 46.78 55.93 62.29 56.99 58.22 59.20 60.58 62.29 61.96 59.46 59.44 8888 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 42.77 46.78 55.93 62.29 56.99 58.22 59.20 60.58 62.29 61.96 59.46 59.44 9999 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 41.40 46.00 54.90 61.31 56.39 57.56 58.39 59.57 61.31 60.59 58.39 58.53 11110000 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee 296.68 321.07 354.55 390.59 374.08 377.72 380.80 384.29 390.59 391.00 390.86 394.15 NNNNOOOOTTTT AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS11110000 11111111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss11111111 59.12 55.53 56.54 62.86 57.77 59.14 60.04 61.30 62.86 62.07 59.59 59.61 11112222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 58.80 55.34 56.42 62.78 57.42 58.71 59.75 61.21 62.78 62.00 59.52 59.55 11113333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 58.82 55.34 56.42 62.78 57.42 58.71 59.75 61.21 62.78 62.00 59.52 59.55 11114444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 57.46 54.55 55.39 61.80 56.82 58.05 58.95 60.20 61.80 60.62 58.45 58.64 11115555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee11112222 313.70 333.61 360.90 397.62 380.53 384.25 387.51 391.14 397.62 397.89 397.93 400.78 11116666 EEEExxxxcccceeeessssssss rrrreeeesssseeeerrrrvvvveeeessss 1.66 .98 1.16 1.06 .95 1.09 1.09 1.10 1.06 1.45 1.14 .96 11117777 BBBBoooorrrrrrrroooowwwwiiiinnnnggggssss ffffrrrroooommmm tttthhhheeee FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee .33 .19 .12 .08 .35 .43 .29 .09 .08 .07 .07 .06 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 • June 1994 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1993 1994 IItteemm D 19 e 9 c 0 . D 19 e 9 c 1 . D 19 e 9 c 2 . D 19 e 9 c 3 .r Dec.r Jan.r Feb. Mar. Seasonally adjusted Measures 1 Ml 826.4 897.7 1,024.8 1,128.4 1,128.4 1,133.5 l,138.5r 1,142.5 2 M2 3,353.0 3.455.3 3,509.0 3,563.1 3,563.1 3,569.4 3,565.9" 3,581.9 3 M3 4.125.7 4.180.4 4.183.0 4,224.9 4,224.9 4,228.4 4,200.4r 4,209.2 4 L 4.974.8 4,992.9 5.057.1 5,123.7 5,123.7 5,140.8 5,130.9 n.a. 5 Debt 10,670.1 11,147.3 11,721.5 12,321.5 12,321.5 12,373.7 12,422.9 n.a. Ml components 6 Currency 246.7 267.1 292.2 321.4 321.4 325.3 329.2 332.4 7 Travelers checks4 7.8 7.7 8.1 7.9 7.9 7.9 7.9 8.0 8 Demand deposits5 277.9 290.0 339.6 384.8 384.8 388.4 390.4r 390.1 9 Other checkable deposits6 294.0 332.8 384.9 414.3 414.3 412.0 411.1 411.9 Nontransaction components 10 InM27 2,526.6 2,557.6 2,484.3 2,434.7 2,434.7 2,435.9 2,427.3r 2,439.5 11 In M3 772.7 725.2 674.0 661.8 661.8 659.0 634.6r 627.3 Commercial banks 12 Savings deposits, including MMDAs 582.1 665.5 754.6 785.3 785.3 790.1 791.1 790.7 13 Small time deposits9. 611.3 602.9 508.7 468.5 468.5 465.5 464.0 462.5 14 Large time deposits • 11 368.6 342.4 292.8 277.0 277.0 279.1 273.5r 271.3 Thrift institutions 15 Savings deposits, including MMDAs 338.3 375.6 429.0 430.2 430.2 430.2 429.9 432.0 16 Small time deposits'. 563.2 464.5 361.8 314.3 314.3 311.7 308.5r 307.1 17 Large time deposits 120.9 83.4 67.5 61.8 61.8 62.0 61.7r 60.9 Money market mutual funds 18 General purpose and broker-dealer . 355.5 370.4 352.0 348.8 348.8 347.8 343.7r 348.6 19 Institution-only 135.0 181.0 201.5 197.0 197.0 192.7 176.9 177.4 Debt components 20 Federal debt 2,490.7 2,763.8 3,068.4 3,327.9 3,327.9 3,335.6 3,349.3 n.a. 21 Nonfederal debt 8,179.4 8,383.5 8,653.1 8,993.6 8,993.6 9,038.2 9,073.6 n.a. Not seasonally adjusted Measures2 22 Ml 843.8 916.7 1,046.7 1,153.8 1,153.8 1,142.8 1,124.7 1,132.0 23 M2 3,366.0 3,470.4 3,527.6 3,585.7 3,585.7 3,576.1 3,553.8r 3,580.3 24 M3 4,135.5 4,191.9 4,198.2 4,244.3 4,244.3 4,229.3 4,191.2r 4,209.1 25 L 4,997.2 5,018.0 5,087.6 5,158.5 5,158.5 5,155.1 5,122.5 n.a. 26 Debt 10,667.7 11,144.6 11,723.3 12,321.5 12,321.5 12,359.4 12,396.7 n.a. Ml components 27 Currency 249.5 269.9 295.0 324.9 324.9 324.0 327.3 330.7 28 Travelers checks4 7.4 7.4 7.8 7.6 7.6 7.7 7.7 7.8 29 Demand deposits5 289.9 303.1 355.1 402.6 402.6 393.2 380.7r 380.7 30 Other checkable deposits 297.0 336.3 388.9 418.6 418.6 417.9 409.0 412.8 Nontransaction components 31 In M2 2,522.3 2,553.7 2,480.9 2,432.0 2,432.0 2,433.3 2,429. lr 2,448.3 32 In M38 769.5 721.6 670.5 658.6 658.6 653.2 637.4r 628.8 Commercial banks 33 Savings deposits, including MMDAs 580.8 664.0 752.9 783.9 783.9 786.1 787.7 791.8 34 Small time deposits9 610.5 601.9 507.8 467.6 467.6 465.6 463.8r 462.1 35 Large time deposits ' 367.7 341.3 291.7 275.9 275.9 276.1 271.8r 271.1 Thrift institutions 36 Savings deposits, including MMDAs 337.6 374.8 428.1 429.4 429.4 428.0 428.0 432.6 37 Small time deposits9 562.4 463.8 361.2 313.6 313.6 311.8 308.4r 306.8 38 Large time deposits 120.6 83.1 67.2 61.6 61.6 61.4 61.3r 60.9 Money market mutual funds 39 General purpose and broker-dealer 353.8 368.5 350.2 347.2 347.2 348.1 349.4r 357.6 40 Institution-only 134.7 180.4 200.4 195.8 195.8 196.2 186.1 180.5 Repurchase agreements and Eurodollars 41 Overnight 77.3 80.6 80.7 90.3 90.3 93.6 91.7 97.4 42 Term 158.3 130.1 126.7 141.0 141.0 134.9 133.8r 132.8 Debt components 43 Federal debt 2,491.3 2,765.0 3,069.8 3,329.5 3,329.5 3,333.0 3,345.4 n.a. 44 Nonfederal debt 8,176.3 8,379.7 8,653.5 8,992.0 8,992.0 9,026.4 9,051.3 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-deader), 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 NonfinancialS tatistics • June 1994 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1993 1994 Jit em D 19 e 9 c 1 . D 19 e 9 c 2 . July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Interest rates (annual effective yields) INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts ... 3.76 2.33 2.06 2.01 1.96 1.92 1.89 1.86 1.84 1.82 1.81 2 Savings deposits 4.30 2.88 2.59 2.55 2.51 2.49 2.48 2.46 2.46 2.43 2.43 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 4.18 2.90 2.67 2.66 2.63 2.63 2.64 2.65 2.65 2.68 2.76 4 92 to 182 days 4.41 3.16 2.97 2.96 2.92 2.91 2.92 2.91 2.90 2.94 3.02 5 183 days to 1 year 4.59 3.37 3.18 3.17 3.13 3.11 3.13 3.13 3.14 3.18 3.27 6 More than 1 year to 2 Vi years 4.95 3.88 3.64 3.63 3.55 3.54 3.54 3.55 3.56 3.61 3.69 7 More than 2 Vi years 5.52 4.77 4.43 4.40 4.28 4.27 4.28 4.29 4.31 4.35 4.46 BIF-INSURED SAVINGS BANKS3 8 Negotiable order of withdrawal accounts ... 4.44 2.45 2.09 2.07 2.01 1.98 1.95 1.87 1.89 1.88 1.83 9 Savings deposits2 4.97 3.20 2.83 2.80 2.73 2.68 2.65 2.63 2.62 2.64 2.63 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 4.68 3.13 2.80 2.79 2.76 2.75 2.73 2.70 2.69 2.69 2.71 11 92 to 182 days 4.92 3.44 3.15 3.12 3.05 3.05 3.03 3.02 3.03 3.04 3.08 12 183 days to 1 year 4.99 3.61 3.40 3.37 3.33 3.34 3.32 3.31 3.33 3.34 3.37 13 More than 1 year to 2 Vi years 5.23 4.02 3.72 3.73 3.69 3.68 3.69 3.66 3.72 3.76 3.85 14 More than 2 Vi years 5.98 5.00 4.73 4.73 4.62 4.57 4.60 4.62 4.61 4.66 4.75 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts ... 244,637 286,541 284,496 287,675 286,056 289,813 297,329 305,223 293,806 295,573 297,488 16 Savings deposits2 652,058 738,253 757,716 761,919 758,835 765,372 770,609 766,413 771,559 776,204 779,348 17 Personal 508,191 578,757 593,448 593,318 592,028 595,715 598,200 597,838 606,615 611,725 615,877 18 Nonpersonal 143,867 159,496 164,268 168,601 166,807 169,657 172,408 168,575 164,944 164,479 163,470 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 47,094 38,474 30,803 30,017 30,384 30,022 29,730 29,455 29,312 29,578 29,535 20 92 to 182 days 158,605 127,831 112,497 109,603 108,574 108,504 109,228 110,069 109,110 109,444 107,352 21 183 days to 1 year 209,672 163,098 156,431 155,074 152,501 149,758 147,334 146,565 144,037 143,624 144,004 22 More than 1 year to 2 Vi years 171,721 152,977 143,605 141,377 139,406 139,042 139,315 141,223 141,204 141,006 139,932 23 More than 2 Vl years 158,078 169,708 180,983 181,762 184,414 183,790 180,972 181,528 182,193 181,240 180,939 24 IRA/Keogh Plan deposits 147,266 147,350 146,196 145,955 145,636 144,776 145,002 143,985 143,875 143,409 142,204 BIF-INSURED SAVINGS BANKS3 25 Negotiable order of withdrawal accounts.... 9,624 10,871 10,457 10,468 10,471 10,548 10,852 11,151 10,796 10,870 11,078 26 Savings deposits2 71,215 81,786 78,390 78,387 78,182 77,995 77,948 80,115 78,660 78,016 78,700 27 Personal 68,638 78,695 75,049 75,153 74,978 74,737 74,664 77,035 75,445 74,756 75,443 28 Nonpersonal 2,577 3,091 3,341 3,234 3,204 3,258 3,284 3,079 3,215 3,260 3,257 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 4,146 3,867 2,871 2,928 2,886 2,839 2,778 2,793 2,737 2,735 2,671 30 92 to 182 days 21,686 17,345 13,773 13,525 13,261 13,131 12,926 12,946 13,094 13,165 13,177 31 183 days to 1 year 29,715 21,780 18,454 18,143 17,798 17,441 17,178 17,426 17,418 17,436 17,511 32 More than 1 year to 2Yi years 25,379 18,442 16,250 16,200 16,161 16,124 15,995 16,546 16,281 16,338 16,183 33 More than 2Vi years 18,665 18,845 19,229 19,331 19,610 19,657 19,645 20,464 20,630 20,939 21,122 34 IRA/Keogh Plan accounts 23,007 21,713 19,920 19,802 19,766 19,601 19,382 19,356 19,395 19,474 19,447 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 1993r 1994 Aug. Sept. Oct. Nov. Dec. Jan. DEBITS Seasonally adjusted Demand deposits3 1 All insured banks 277,741.7 313,251.6 334,793.7 333,015.7 353,605.3 329,586.5 358,503.0 367,734.8 349,684.3 2 Major New York City banks 137,337.2 165,484.5 171,312.0 168,910.8 180,532.6 168,055.5 187,022.4 189,024.1 183,245.8 3 Other banks 140,404.5 147,767.2 163,481.7 164,104.9 173,072.7 161,530.9 171,480.6 178,710.7 166,438.5 4 Other checkable deposits4 3,643.1 3,781.5 3,486.8 3,380.6 3,461.0 3,348.0 3,598.6 3,809.5 3,439.6 5 Savings deposits (including MMDAs) 3,206.4 3,310.6 3,507.3 3,502.6 3,619.2 3,403.1 3,740.5 3,933.6 3,600.6 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 803.7 826.0 786.5 767.9 808.5 741.7 803.0 826.9 771.5 7 Major New York City banks 4,267.1 4,794.5 4,200.6 4,020.7 4,178.0 3,937.7 4,352.2 4,550.0 4,268.3 8 Other banks 448.1 428.9 424.8 419.0 439.1 402.1 425.0 443.3 405.6 9 Other checkable deposits4 16.2 14.4 11.9 11.3 11.6 11.1 12.0 12.6 11.4 10 Savings deposits (including MMDAs) 5.2 4.7 4.6 4.6 4.7 4.4 4.8 5.1 4.6 DEBITS Not seasonally adjusted Demand deposits3 11 All insured banks 277,752.4 313,416.8 334,775.6 342,458.2 347,783.4 336,009.2 344,140.1 380,187.5 349,779.9 12 Major New York City banks 137,307.2 165,595.0 171,283.5 174,674.7 179,869.7 172,675.6 180,990.2 194,541.0 181,971.7 13 Other banks 140,445.2 147,821.9 163,492.1 167,783.5 167,913.7 163,333.6 163,149.9 185,646.4 167,808.2 14 Other checkable deposits4 3,645.2 3,784.4 3,485.2 3,369.1 3,493.2 3,323.3 3,370.1 3,888.9 3,759.2 15 Savings deposits (including MMDAs) 3,209.2 3,310.0 3,505.8 3,529.5 3,534.2 3,336.0 3,511.8 4,066.4 3,786.5 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 803.6 826.3 786.5 802.5 798.6 750.0 754.8 820.6 759.5 17 Major New York City banks 4,269.0 4,803.5 4,197.9 4,307.8 4,196.6 4,059.2 4,129.6 4,387.8 4,047.8 18 Other banks 448.1 429.0 424.9 434.5 427.7 402.8 395.9 443.1 403.8 19 Other checkable deposits4 16.2 14.4 11.9 11.5 11.8 11.2 11.2 12.7 12.2 20 Savings deposits (including MMDAs) 5.2 4.7 4.6 4.6 4.6 4.3 4.5 5.2 4.8 1. Historical tables containing revised data for earlier periods can be obtained 4. As of January 1994, other checkable deposits (OCDs) previously defined as from the Publications Section, Division of Support Services, Board of Governors automatic transfer to demand deposits (ATSs) and negotiable order of withdrawal of the Federal Reserve System, Washington, DC 20551. (NOW) accounts, were expanded to include telephone and preauthorized transfer Data in this table also appear in the Board's G.6 (406) monthly statistical accounts. This change redefined OCDs for debits data to be consistent with OCDs release. For ordering address, see inside front cover. for deposits data. 2. Annual averages of monthly figures. 5. Money market deposit accounts. 3. Represents accounts of individuals, partnerships, and corporations and of states and political subdivisions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • June 1994 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Billions of dollars Monthly averages Wednesday figures Account 1993 1993r 19941 1994r Mar. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Mar. 9 Mar. 16 Mar. 23 Mar. 30 ALL COMMERCIAL BANKING INSTITUTIONS Seasonally adjusted Assets 1 Bank credit 2,986.2 3,073.6 3,075.2 3,090.1 3,102.8 3,122.9 3,136.7 3,164.0 3,155.3 3,158.4 3,164.4 3,177.2 2 Securities in bank credit 870.8 904.8 901.2 905.7 915.1 929.0 934.2 953.8 950.0 950.4 952.2 961.5 U.S. government securities ... 690.5 720.0 717.9 722.3 730.2 735.2 734.9 750.1 746.5 744.6 751.5 757.2 4 Other securities 180.3 184.8 183.2 183.4 184.9 193.9 199.3 203.6 203.5 205.8 200.7 204.3 5 Loans and leases in bank credit2. 2,115.5 2,168.9 2,174.1 2,184.4 2,187.7 2,193.9 2,202.5 2,210.3 2,205.3 2,208.0 22,,221122..22 2,215.7 6 Commercial and industrial .... 593.1 586.9 586.5 585.3 584.8 589.9 592.0 596.6 592.4 597.8 559988..11 599.1 7 Real estate 903.4 923.4 925.6r 929.7 934.2 936.2 935.0 935.1 935.2 935.0 934.8 935.1 8 Revolving home equity 74.7 74.4 73.8 73.4 73.1 72.8 72.9 72.9 72.9 72.8 73.0 73.0 9 Other 828.7 849.0 851.9 856.3 861.1 863.4 862.2 862.2 862.3 862.2 861.8 862.1 10 Consumer 365.2 380.4 384.5r 387.5 389.7 392.3 395.7 399.6 397.5 398.6 400.2 402.1 11 Security3 64.8 82.1 81.3 87.1 86.1 79.3 80.7 81.9 83.6 80.7 82.2 81.2 12 Other 189.1 196.1 196.2 194.8 192.8 196.1 199.1 197.1 196.6 195.9 196.9 198.1 13 Interbank loans4 152.8 152.1 151.8 154.9 154.3 155.3 156.0 147.8 138.2 149.1 149.3 154.1 14 Cash assets5 206.5 225.5 220.2 218.4 218.6 219.0 224.7 216.2 216.4 213.9 219.7 211.9 15 Other assets6 216.2 220.9 218.5 217.7 215.6 221.2 224.2 224.7 223.8 219.2 229.1 226.6 16 Total assets7 3,500.6 3,612.3 3,606.4 3,622.0 3,632.5 3,660.0 3,683.8 3,694.9 3,675.9 3,682.7 3,704.7 3,711.8 Liabilities 17 Deposits 2,495.0 2,524.2 2,524.2 2,533.3 2,537.8 2,537.4 2,531.3 2,516.0 2,519.0 2,517.7 2,522.0 2,502.5 18 Transaction 752.1 808.7 810.0 815.9 818.0 814.7 816.9 813.2 814.9 814.1 819.8 802.5 19 Nontransaction 1,742.9 1,715.5 1,714.2 1,717.4 1,719.7 1,722.7 1,714.4 1,702.8 1,704.1 1,703.6 1,702.2 1,700.1 20 Large time 365.2 344.2 346.3 347.6 350.1 348.5 340.2 332.0 333.2 332.6 331.9 329.8 21 Other 1,377.8 1,371.3 1,367.9 1,369.8 1,369.7 1,374.2 1,374.2 1,370.8 1,370.9 1,371.0 1,370.2 1,370.3 22 Borrowings 493.0 530.1 515.5 514.9 546.1 572.9 549.6 547.8 517.6 549.0 565.8 556.6 23 From banks in the U.S 151.2 150.9 154.1 155.6 155.4 153.4 153.5 145.1 138.6 146.1 141.3 152.7 24 From nonbanks in the U.S 341.8 379.2 361.4 359.2 390.8 419.5 396.1 402.7 378.9 402.9 424.5 403.9 25 Net due to related foreign offices 79.3 126.1 123.8 121.6 119.1 115.9 135.9 157.3 160.2 151.1 155.0 163.9 26 Other liabilities8 150.0 146.0 144.4 143.6 142.0 154.0 161.0 158.1 160.7 157.1 155.5 157.1 27 Total liabilities 3,217.3 3,326.4 3,307.9 3,313.3 3,345.0 3,380.2 3,377.8 3,379.2 3,357.4 3,374.9 3,398.3 3,380.1 28 Residual (assets less liabilities)9.... 283.2 285.9 298.5 308.7 287.6 279.8 306.0 315.7 318.4 307.8 306.4 331.7 Not seasonally adjusted Assets 29 Bank credit 2,984.5 3,074.5 3,077.9 3,101.0 3,118.6 3,124.0 3,135.2 3,163.0 3,157.9 3,162.3 3,157.9 3,172.1 30 Securities in bank credit 874.1 906.4 903.3 911.1 914.6 925.0 934.1 957.3 955.2 955.1 954.8 963.7 31 U.S. government securities ... 693.6 721.7 719.5 726.4 729.7 731.2 733.6 753.9 750.6 749.9 755.6 760.2 32 Other securities 180.5 184.8 183.8 184.7 184.9 193.8 200.4 203.3 204.6 205.2 199.2 203.4 33 Loans and leases in bank credit2. 2,110.4 2,168.1 2,174.5 2,189.9 2,204.0 2,199.0 2,201.2 2,205.7 2,202.6 2,207.2 2,203.1 2,208.4 34 Commercial and industrial .... 595.9 583.4 584.5 586.1 586.8 589.2 591.2 599.5 594.0 601.5 600.3 603.1 35 Real estate 898.9 923.9 928.1 932.1 937.4 934.7 931.6 931.4 932.1 931.5 929.7 932.0 36 Revolving home equity 74.1 74.7 74.5 73.9 73.3 72.9 72.7 72.3 72.4 72.2 72.3 72.2 37 Other 824.9 849.2 853.6 858.3 864.0" 861.8 859.0 859.1 859.7 859.2 857.4 859.8 38 Consumer 362.5 381.5 384.4 387.7 394.1 396.8 396.9 396.8 395.1 396.0 397.2 398.6 39 Security3 66.5 81.5 80.1 87.1 88.0 81.6 85.2 84.1 87.5 85.3 83.6 79.8 40 Other 186.5 197.7 197.5 196.8 197.7 196.8 196.1 193.9 194.0 192.9 192.3 195.0 41 Interbank loans4 153.2 150.2 150.8 156.4 162.8 159.4 156.6 147.6 143.6 149.7 142.8 151.8 42 Cash assets5 201.1 227.4 219.5 225.9 231.8 223.9 219.3 210.9 204.3 215.0 206.1 213.2 43 Other assets6 214.9 222.1 221.0 220.6 219.7 223.6 223.7 223.2 222.0 218.4 224.8 226.8 44 Total assets7 3,492.2 3,614.3 3,610.1 3,644.4 3,673.7 3,672.8 3,676.6 3,686.4 3,669.4 3,686.9 3,673.3 3,705.9 Liabilities 45 Deposits 2,488.2 2,522.8 2,516.1 2,544.0 2,566.5 2,540.7 2,521.1 2,507.8 2,509.5 2,518.5 2,488.4 2,503.4 46 Transaction 741.6 806.9 804.1 827.5 852.5 824.3 807.8 801.6 799.9 810.9 783.7 801.6 47 Nontransaction 1,746.6 1,715.9 1,712.0 1,716.5 1,714.1 1,716.4 1,713.3 1,706.2 1,709.6 1,707.6 1,704.7 1,701.7 48 Large time 368.1 343.7 342.4 344.5 346.3 345.0 340.6 334.6 335.9 335.6 335.0 331.7 49 Other 1,378.5 1,372.1 1,369.6 1,372.1 1,367.8 1,371.4 1,372.8 1,371.6 1,373.7 1,372.0 1,369.6 1,370.0 50 Borrowings 498.0 530.0 526.4 528.4 535.3 548.4 548.8 549.9 532.6 550.8 557.1 558.0 51 From banks in the U.S 153.9 150.7 151.4 156.9 163.2 159.7 156.7 147.6 143.7 149.7 142.3 151.8 52 From nonbanks in the U.S 344.2 379.3 375.1 371.5 372.1 388.7 392.0 402.3 388.9 401.0 414.8 406.2 53 Net due to related foreign offices 80.2 118.6 124.3 124.4 126.3 124.0 138.8 161.9 156.6 152.1 164.8 177.8 54 Other liabilities8 149.8 146.6 147.1 149.5 145.5 156.3 161.1 157.9 161.4 156.9 154.2 157.3 55 Total liabilities 3,216.2 3,317.9 3,314.0 3,346.3 3,373.6 3,369.4 3,369.8 3,377.4 3,360.2 3,378.2 3,364.6 3,396.4 56 Residual (assets less liabilities)9.... 276.0 296.4 296.0 298.2 300.1 303.5 306.8 309.0 309.2 308.7 308.7 309.4 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—Continued Billions of dollars Monthly averages Wednesday figures Account 1993 1993r 1994r 1994r Mar. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Mar. 9 Mar. 16 Mar. 23 Mar. 30 DOMESTICALLY CHARTERED COMMERCIAL BANKS Seasonally adjusted Assets 57 Bank credit 2,658.5 2,732.3 2,736.9 2,751.2 2,764.1 2,784.5 2,792.7 2,817.1 2,812.4 2,815.5 2,815.6 22,,882233..11 58 Securities in bank credit 802.5 826.9 822.8 826.5 834.3 846.5 850.1 868.8 866.0 867.9 866.7 874.4 59 U.S. government securities .. 645.6 667.2 665.0 668.2 673.6 677.6 675.7 690.0 687.1 687.0 690.4 695.3 60 Other securities 156.9 159.8 157.8 158.4 160.7 168.8 174.3 178.9 178.9 180.9 176.3 179.1 61 Loans and leases in bank credit2 . 1,856.1 1,905.3 1,914.1 1,924.7 1,929.7 1,938.0 1,942.6 1,948.2 1,946.4 1,947.7 1,948.9 1,948.7 6? Commercial and industrial ... 439.2 433.8 433.6 433.7 434.7 439.1 441.2 442.9 440.6 443.4 443.2 444.3 63 Real estate 852.5 875.5 878.4 882.8 888.3 891.6 890.9 891.6 891.3 891.5 891.3 891.7 64 Revolving home equity 74.7 74.3 73.8 73.4 73.0 72.7 72.8 72.9 72.9 72.8 73.0 73.0 65 Other 777.9 801.2 804.6 809.5 815.2 818.9 818.1 818.7 818.4 818.7 818.4 818.8 66 Consumer 365.2 380.4 384.5r 387.5 389.7 392.3 395.7 399.6 397.5 398.6 400.2 402.1 67 Security3 44.4 56.4 56.5 59.6 57.3 53.7 53.8 54.8 57.3 55.4 55.1 51.5 68 Other 154.8 159.3 161.2 161.0 159.7 161.2 161.0 159.4 159.8 158.8 159.0 159.0 69 Interbank loans4 132.2 130.5 130.0 133.4 134.3 136.1 131.4 126.9 121.3 131.4 126.0 129.2 70 Cash assets5 178.3 198.5 193.5 192.9 193.2 193.9 200.4 190.8 190.8 188.4 194.7 186.3 71 Other assets6 170.7 173.7 172.8 172.2 171.8 174.8 175.8 177.5 176.2 174.4 180.5 179.1 72 Total assets7 3,078.6 3,175.1 3,173.8 3,190.6 3,204.6 3,231.1 3,242.3 3,254.5 3,243.1 3,252.0 3,259.1 3,259.8 Liabilities 73 Deposits 2,339.7 2,372.3 2,370.4 2,376.0 2,374.8 2,376.5 2,376.3 2,370.1 2,374.5 2,373.2 2,375.7 22,,335555..22 74 Transaction 741.5 795.9 797.4 803.4 805.9 802.3 804.0 800.2 802.0 801.3 807.0 789.1 75 Nontransaction 1,598.3 1,576.4 1,573.1 1,572.6 1,568.9 1,574.2 1,572.3 1,569.9 1,572.5 1,571.9 1,568.7 1,566.1 76 Large time 225.4 212.3 211.7 210.6 208.5 210.0 208.3 206.8 208.4 207.4 206.0 205.2 77 Other 1,372.9 1,364.1 1,361.4 1,362.0 1,360.4 1,364.2 1,364.1 1,363.1 1,364.1 1,364.5 1,362.6 1,360.9 78 Borrowings 364.5 418.8 408.5 406.0 434.9 460.0 442.4 444.7 417.5 444.3 461.8 453.5 79 From banks in the U.S 106.0 116.7 119.3 118.4 116.9 113.6 115.7 109.6 106.6 107.5 104.4 118.5 80 From nonbanks in the U.S 258.5 302.1 289.2 287.6 318.0 346.4 326.7 335.0 310.9 336.8 357.4 335.0 81 Net due to related foreign offices -8.7 -7.6 -6.2 -2.7 1.5 3.4 3.3 14.1 15.2 10.8 14.2 16.9 82 Other liabilities8 105.8 105.6 105.9 105.5 105.3 114.0 120.0 119.0 120.9 120.8 115.8 117.0 83 Total liabilities 2,801.4 2,889.1 2,878.7 2,884.8 2,916.6 2,954.0 2,942.1 2,947.9 2,928.2 2,949.2 2,967.5 2,942.7 84 Residual (assets less liabilities)9... 277.2 286.0 295.2 305.8 288.1 277.1 300.3 306.7 314.9 302.8 291.6 317.1 Not seasonally adjusted Assets 85 Bank credit 2,653.3 2,736.7 2,741.9 2,759.9 2,770.6 2,777.5 2,788.8 2,812.1 2,809.9 2,811.7 2,806.2 22,,881177..00 86 Securities in bank credit 803.5 829.9 825.6 830.6 831.5 840.0 849.3 869.6 868.1 868.7 866.0 874.8 87 U.S. government securities .. 647.0 669.9 666.7 670.8 670.8 671.4 674.5 691.6 689.0 689.0 691.6 696.9 88 Other securities 156.5 160.1 158.9 159.8 160.7 168.6 174.7 178.0 179.1 179.7 174.4 177.9 89 Loans and leases in bank credit2 . 1,849.8 1,906.7 1,916.3 1,929.3 1,939.1 1,937.5 1,939.6 1,942.5 1,941.8 1,943.0 1,940.2 1,942.2 90 Commercial and industrial ... 441.1 431.5 433.1 434.4 434.7 436.6 440.5 444.8 442.0 445.5 445.1 446.7 91 Real estate 848.0 876.0 880.7 885.2 891.6 890.3 887.4 887.8 888.0 887.7 886.2 888.9 9? Revolving home equity 74.0 74.7 74.4 73.9 73.3 72.9 72.6 72.3 72.4 72.2 72.3 72.2 93 Other 774.0 801.3 806.2 811.3 818.3 817.4 814.7 815.5 815.6 815.5 813.9 816.7 94 362.5 381.5 384.4 387.7 394.1 396.8 396.9 396.8 395.1 396.0 397.2 398.6 95 Security3 45.4 56.6 55.6 59.4 56.6 53.2 55.9 56.0 59.2 57.0 56.2 51.1 96 Other 152.8 161.2 162.6 162.5 162.2 160.6 158.9 157.1 157.6 156.8 155.5 156.9 97 Interbank loans4 133.1 128.2 128.5 135.1 139.6 139.2 133.6 127.6 127.3 131.8 121.9 127.2 98 Cash assets5 173.5 199.3 191.8 200.2 206.3 199.1 195.4 186.0 179.7 190.1 181.3 187.7 99 Other assets6 170.0 175.1 175.1 173.6 173.9 176.0 175.0 176.6 174.5 173.7 177.9 180.0 100 Total assets7 3,068.4 3,179.5 3,178.3 3,209.4 3,231.2 3,233.7 3,234.5 3,244.0 3,233.1 3,249.0 3,229.0 3,254.0 Liabilities 101 Deposits 2,329.4 2,372.1 2,368.1 2,391.1 2,406.7 2,381.5 2,365.2 2,358.7 2,362.7 2,370.7 2,338.1 2,352.0 10? Transaction 731.3 793.6 791.2 815.0 840.1 811.7 794.9 789.1 787.8 798.6 771.4 788.2 103 Nontransaction 1,598.1 1,578.5 1,576.9 1,576.1 1,566.7 1,569.8 1,570.3 1,569.6 1,574.9 1,572.0 1,566.7 1,563.8 104 Large time 224.8 213.4 212.8 211.1 207.2 208.5 208.3 206.2 208.7 206.9 205.6 203.2 105 Other 1,373.3 1,365.1 1,364.1 1,365.0 1,359.5 1,361.3 1,362.0 1,363.4 1,366.2 1,365.2 1,361.0 1,360.6 106 Borrowings 367.7 418.1 416.4 417.6 422.6 434.7 441.8 445.6 428.7 442.3 453.4 457.7 107 From banks in the U.S 108.2 115.4 116.4 118.1 121.6 118.3 119.4 111.8 111.3 109.7 106.3 117.4 108 From nonbanks in the U.S 259.5 302.6 300.0 299.5 300.9 316.4 322.4 333.8 317.4 332.6 347.1 340.3 109 Net due to related foreign offices -7.8 -8.9 -6.6 -3.3 -1.8 3.0 5.4 16.0 15.3 10.9 17.5 2211..88 110 Other liabilities8 105.9 106.3 108.9 110.3 108.0 115.4 119.5 119.0 532.6 550.8 557.1 558.0 111 Total liabilities 2,795.2 2,887.5 2,886.8 2,915.7 2,935.5 2,934.5 2,932.0 2,939.3 2,928.1 2,944.5 2,924.4 2,949.3 112 Residual (assets less liabilities)9... 273.1 292.0 291.5 293.7 295.7 299.2 302.5 304.7 305.0 304.5 304.6 304.7 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 DomesticN onfinancial Statistics • June 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-related Reserve Banks, and other cash assets. institutions). Excludes international banking facilities. Data sire Wednesday 6. Excludes the due-from position with related foreign offices, which is values, or pro rata averages of Wednesday values. Large domestic banks included in lines 25, 53, 81, and 109. constitute a universe; data for small domestic banks and foreign-related institu- 7. Excludes unearned income, reserves for losses on loans and leases, and tions are estimates based on weekly samples and on quarter-end condition reserves for transfer risk. Loans are reported gross of these items. reports. Data are adjusted for breaks caused by reclassifications of assets and 8. Excludes the due-to position with related foreign offices, which is included in liabilities. lines 25, 53, 81, and 109. 2. Excludes federal funds sold to, reverse repurchase agreements with, and 9. This balancing item is not intended as a measure of equity capital for use in loans to commercial banks in the United States. capital adequacy analysis. 3. Consists of reserve repurchase agreements with broker-dealers and loans to 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 1994 Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 ASSETS 1 Cash and balances due from depository ins 117,027 112,452 115,217 127,359 124,245 107,906 115,508 109,995 2 U.S. Treasury and government securities 304,096r 303,562r 306,514r 303,715r 314,056 316,955 317,115 316,554 3 Trading account 24,428 24,145 26,645 24,452 26,601 29,208 29,948 26,217 4 Investment account 279,667r 279,417' 279,869r 279,263r 287,455 287,747 287,167 290,337 5 Mortgage-backed securities1 88,372 87,940 88,478 89,291 90,970 90,722 90,259 91,528 All others, by maturity 6 One year or less 48,671r 47,725r 47,352r 47, IOC 49,925 49.525 49,234 49,605 7 One year through five years 72,959r 73,672r 75,095r 73,642r 76,778 77,161 78,156 79,733 8 More than five years 69,665r 70,080r 68,944r 69,230r 69,783 70,339 69,517 69,471 9 Other securities 86,467r 85,873r 85,83 lr 80,470r 88,460 88,794 89,039 84,715 10 Trading account 1,824 1,833 1,669 1,790 1,841 1,764 1,640 1,838 11 Investment account 57,244r 57,36/ 57,242r 57,391r 57,469 57,572 57,562 57,423 12 State and political subdivisions, by maturity 21,078 21,195 21,279 21,397 21,518 21,679 21,650 21,624 13 One year or less 3,981 4,005 4,088 4,143 4,220 4,247 4,266 4,229 14 More than one year 17,098 17,189 17,192 17,254 17,298 17,432 17,384 17,395 15 Other bonds, corporate stocks, and securities 36,166r 36,173r 35,963r 35,994r 35,952 35,893 35,912 35,799 16 Other trading account assets 27,40*^ 26,672r 26,920r 21,289r 29,150 29,457 29,837 25,454 17 Federal funds sold2 lOO^ 93,722r 100,541r 89,135r 97,923 91,513 93,922 89,669 18 To commercial banks in the United States 63,901r 58,346r 61,475r 54,097r 58,892 52,556 58,354 56,008 19 To nonbank brokers and dealers 31,175r 29,345r 31,566r 28,299r 32,412 32,511 30,232 27,890 20 To others3 5,873 6,030 7,500 6,739 6,618 6,447 5,335 5,770 21 Other loans and leases, gross 1,040,683 1,039,164 1,036,932 1,030,277 1,041,348 1,037,367 1,041,343 1,040,948 22 Commercial and industrial 282,010' 281,079' 282,773r 280,977r 284,104 283,194 286,627 285,974 23 Bankers acceptances and commercial 3,105 3,197 3,227 3,160 3,122 3,174 2,951 2,608 24 All other 278,905r 277,883r 279,545r 277,817r 280,981 280,020 283,676 283,366 25 U.S. addressees 277,233r 275,987r 277,553r 275,799r 278,969 278,007 281,696 281,318 26 Non-U.S. addressees 1,672 1,896 1,993 2,018 2,013 2,013 1,980 2,049 2 2 2 3 8 9 7 0 T R o e R A a i l e l n l v e d o o s iv t l t h v a id e t i e n r u g a l , o l s a h n f o o s m r e p e e r q s u o i n ty a l expenditures . 4 3 2 4 7 0 2 3 6 9 0 , , , , 8 3 4 1 3 5 2 9 4 5 7 c r r r 4 3 2 4 2 0 7 9 3 1 7 , , , , 5 7 2 4 6 3 1 8 0 2 6 4 * r r ' 4 3 2 4 1 7 0 3 8 4 8 , , , , 7 0 3 6 0 4 5 7 8 8 9 6 r r r r 4 3 2 4 1 7 0 3 1 4 8 , , , , 6 0 0 6 3 6 9 9 3 3 0 6 r r r ' 4 3 2 4 1 7 0 3 6 3 8 , , , , 5 6 1 9 8 1 6 6 4 5 9 2 4 3 2 4 7 1 0 3 5 9 8 , , , , 5 6 1 3 2 7 9 5 1 5 6 3 4 3 2 4 1 7 0 3 8 5 8 , , , , 4 7 3 8 3 9 5 2 6 0 3 7 4 3 2 4 1 7 0 3 7 3 9 , , , , 5 4 8 7 5 5 9 3 9 3 3 0 31 To financial institutions 38,811 38,606 37,740 37,346 37,539 37,223 36,436 36,065 32 Commercial banks in the United States 16,275 16,685 15,809 16,540 15,590 15,685 15,759 15,522 33 Banks in foreign countries 2,577 2,645 3,124 2,677 3,064 3,040 2,406 2,769 34 Nonbank financial institutions 19,958 19,275 18,807 18,128 18,885 18,499 18,271 17,775 35 For purchasing and carrying securities .. 19,009 19,127 19,670 19,482 21,946 20,872 21,064 22,988 36 To finance agricultural production 5,911 5,901 5,858 5,777 5,846 5,854 5,837 5,880 37 To states and political subdivisions 12,253 12.139 12,198 12,170 12,128 12,076 12,087 12,027 38 To foreign governments and official institi 1,171 1,042 1,127 1,222 1,039 1,075 1,028 1,069 39 All other loans4 25,319 23,906 24,210 23,865 26,393 22,999 24,052 23,095 40 Lease-financing receivables 26,584 26,587 26,622 26,653 26,707 26.526 26,595 26,667 41 LESS: Unearned income 1,873 1,868 1,866 1,884 1,834 1,624 1,613 1,610 42 Loan and lease reserve5 34,846 35.140 35,101 35,060 35,327 35,424 35,417 35,374 4 4 3 4 O O t t h h e e r r a lo s a s n e s ts and leases, net 1,0 1 0 7 3 1 , , 9 1 6 8 4 0 r 1,0 1 0 6 2 9 , , 1 7 5 1 6 4 r 9 1 9 6 9 8 , , 9 6 6 2 5 3 r 9 1 9 6 3 8 , , 3 6 3 3 3 8 r 1,0 1 0 6 4 5 , , 1 9 8 9 8 4 1,0 1 0 6 0 3 , , 3 3 1 5 9 3 1,0 1 0 6 4 5 , , 3 2 1 8 3 0 1,0 1 0 6 3 3 , , 9 6 6 8 4 5 45 Total assets 1,783,685 l,767,478r 1,776,692 1,762,650 1,794,865 1,768,840 1,785,177 1,768,581 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 DomesticN onfinancialS tatistics • June 1994 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1994 AAccccoouunntt Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 LIABILITIES 46 Deposits 1,146,990 1,133,752 1,147,382 1,130,613 1,153,459 1,136,361 1,144,993 1,123,396 1,129,390 47 Demand deposits 302,683 289,944 303,115 292,725 308,249 289,264 300,543 284,299 293,288 48 Individuals, partnerships, and corporations 249,081 241,327 250,516 241,183 253,666 242,266 249,377 233,648 243,567 49 Other holders 53,602 48,617 52,599 51,542 54,583 46,998 51,166 50,651 49,721 50 States and political subdivisions 9,810 8,931 9,355 9,362 9,095 8,236 8,868 8,853 8,734 51 U.S. government 2,920 2,126 3,562 1,686 2,830 2,162 3,733 1,585 2,073 52 Depository institutions in the United States 22,643 20,290 21,830 23,966 24,539 20,872 22,301 19,642 20,789 53 Banks in foreign countries 5,783 4,681 5,600 5,764 5,159 5,084 4,985 5,027 5,444 54 Foreign governments and official institutions 679 607 590 541 679 778 894 1,018 593 55 Certified and officers' checks 11,766 11,982 11,661 10,224 12,281 9,867 10,385 14,526 12,088 56 Transaction balances other than demand deposits4 124,127 123,307 123,215 122,070 125,826 125,415 124,701 123,384 123,769 57 Nontransaction balances 720,180 720,501 721,051 715,818 719,384 721,681 719,749 715,713 712,332 58 Individuals, partnerships, and corporations 697,636 697,627 698,010 692,986 696,459 698,858 697,184 693,668 690,994 59 Other holders 22,544 22,874 23,041 22,832 22,925 22,823 22,565 22,045 21,339 60 States and political subdivisions 18,457 18,806 18,894 18,731 18,729 18,600 18,368 17,962 17,818 61 U.S. government 2,090 2,114 2,120 2,114 2,115 2,099 1,989 1,881 1,513 62 Depository institutions in the United States 1,689 1,647 1,727 1,691 1,787 1,831 1,910 1,898 1,707 63 Foreign governments, official institutions, and banks .... 308 307 301 2% 292 293 298 304 301 64 Liabilities for borrowed money5 336,731r 337,255" 330,842" 334,325" 339,653 326,342 337,417 345,402 345,882 65 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 0 0 0 66 Treasury tax and loan notes 30,901 28,7% 24,590" 22,937" 25,981 6,036 15,315 18,585 14,291 67 Other liabilities for borrowed money6 330055,,883300"" 330088,,445599"" 330066,,225522"" 331111,,338888"" 331133,,667722 332200,,330066 332222,,110022 332266,,881177 333311,,559911 68 Other liabilities (including subordinated notes and debentures) 135,955" 133,708" 134,517" 134,554" 137,725 141,279 138,374 135,093 139,526 69 Total liabilities 1,619,676 1,604,715" 1,612,740 1,599,492 1,630,837 1,603,981 1,620,784 1,603,892 1,614,797 70 Residual (total assets less total liabilities)7 164,008 162,763 163,952 163,158 164,027 164,859 164,393 164,689 163,958 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. 1,452,019" 1,447,288" 1,452,535" 1,432,960" 1,467,304 1,466,388 1,467,305 1,460,355 1,464,630 72 Time deposits in amounts of $100,000 or more 97,652 97,259 96,805 96,302 97,371 97,118 95,233 94,084 91,561 73 Loans sold outright to affiliates9 768 768 762 757 752 751 750 735 697 74 Commercial and industrial 383 382 382 377 373 373 373 368 334 75 Other 385 386 381 380 378 378 377 367 363 76 Foreign branch credit extended to U.S. residents 21,325 21,141 20,710 20,551 20,435 20,277 21,869 22,110 21,882 77 Net owed to related institutions abroad 1,192" -1,418" -2,495" 4,845" 7,031 11,076 6,453 12,682 16,176 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 1994 AAccccoouunntt Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 ASSETS 1 Cash and balances due from depository institutions 16,959 16,334 16,694 15,446 15,8% 16,815 17,045 17,042 16,412 2 U.S. Treasury and government agency securities 36,558 35,720 36,427 36,116 35,844 37,562 37,150 3399,,115544 3388,,777766 3 Other securities. 8,496 8,566 8,741 8,890 8,676 8,608 8,625 8,388 8,670 4 Federal funds sold 31,106 29,627 27,315 29,092 23,563 21,621 22,293 24,023 27,290 To commercial banks in the United States ... 7,377 5,922 6,476 9,688 6,677 3,929 4,433 5,853 7,438 6 To others2 23,729 23,705 20,839 19,403 16,885 17,692 17,861 18,170 19,852 7 Other loans and leases, gross 154,089 156,013 155,529 154,955 156,601 157,031 159,436 158,693 160,813 8 Commercial and industrial 94,374 94,498 94,684 94,386 94,189 94,894 97,476 97,456 98,505 9 Bankers acceptances and commercial paper 3,112 3,142 3,427 2,977 2,971 3,123 3,269 3,170 3,380 10 All other 91,262 91,356 91,257 91,409 91,218 91,771 94,207 94,286 95,125 11 U.S. addressees 87,958 88,036 87,966 88,078 87,898 88,333 90,755 90,725 91,458 1? Non-U.S. addressees 3,304 3,321 3,291 3,332 3,321 3,438 3,452 3,561 3,667 N Loans secured by real estate 29,353 29,394 29,409 29,207 29,062 29,091 28,924 28,804 28,428 14 To financial institutions 21,282 22,359 20,981 20,928 21,298 21,320 21,779 21,564 23,251 15 Commercial banks in the United States.. 5,142 4,632 4,874 4,658 4,807 4,790 5,050 4,838 5,449 16 Banks in foreign countries 1,361 1,456 1,619 1,557 1,556 1,664 1,572 1,565 2,349 17 Nonbank financial institutions 14,778 16,270 14,489 14,714 14,935 14,865 15,157 15,161 15,453 18 For purchasing and carrying securities 4,452 5,177 6,089 5,950 7,605 7,341 6,914 6,407 6,121 19 To foreign governments and official institutions 797 895 594 619 612 601 579 559999 554455 70 All other 3,832 3,690 3,771 3,864 3,834 3,784 3,764 3,864 3,963 21 Other assets (claims on nonrelated parties) .. 33,133 34,900 34,121 32,318 33,648 32,771 30,557 32,338 31,934 22 Total assets3 304,913 301,563 298,285 295,378 295,578 293,886 295,133 299,193 301,457 LIABILITIES 73 Deposits or credit balances owed to other than directly-related institutions 92,671 94,964 94,284 93,391r 89,980 87,661 89,286 89,858 9900,,228888 24 Demand deposits 5,183 4,802 4,760 4,892r 4,834 4,369 4,559 4,506 5,194 25 Individuals, partnerships, and corporations 3,762 3,631 3,680 3,805r 3,820 3,563 33,,662277 33,,660044 33,,889911 76 Other 1,421 1,171 1,080 1,087 1,013 806 932 902 1,303 77 Nontransaction accounts 87,488 90,162 89,524 88,499 85,147 83,292 84,727 85,353 85,094 78 Individuals, partnerships, and corporations 61,925 62,623 61,808 61,662 59,179 57,873 58,867 5599,,002255 5588,,112233 79 Other 25,563 27,539 27,716 26,836 25,%7 25,419 25,860 26,328 26,971 30 Borrowings from other than directlyrelated institutions 82,102 73,471 67,450 67,781 70,642 69,305 72,398 6677,,993322 6655,,557722 31 Federal funds purchased5 47,574 39,235 34,260 33,641 35,343 33,201 38,777 34,987 31,944 3? From commercial banks in the United States 15,878 9,708 9,766 7,430 9,689 6,581 10,800 7,344 77,,001155 33 From others 31,696 29,527 24,494 26,211 25,653 26,620 27,977 27,643 24,929 34 Other liabilities for borrowed money 82,102 73,471 67,450 67,781 70,642 69,305 72,398 67,932 65,572 35 To commercial banks in the United States 6,015 6,227 5,514 5,639 5,115 5,590 6,109 6,231 5,948 36 To others 28,513 28,009 27,676 28,501 30,185 30,514 27,511 26,714 27,681 37 Other liabilities to nonrelated parties 30,509 30,251 30,239 29,759 30,320 29,289 26,595 28,172 28,801 38 Total liabilities6 304,913 301,563 298,285 295,378 295,578 293,886 295,133 299,193 301,457 MEMO 39 Total loans (gross) and securities, adjusted .. 217,730 219,371 216,662 214,708 213,199 216,102 218,020 219,567 222,662 40 Net owed to related institutions abroad 75,059 82,473 86,855 85,887r 83,286 88,152 86,828 93,675 99,233 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 • June 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 Sept. Oct. Nov. Dec. Jan. Feb. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 525,831 562,656 528,832r 545,619r 555,075r 541,920r 547,425r 547,982r 555,075" 559,445 FFiinnaanncciiaall ccoommppaanniieess11 DDeeaalleerr--ppllaacceedd ppaappeerr 22 TToottaall 183,622 214,706 212,999" 226,456r 218,947r 214,359" 218,822r 216,887r 218,947r 219,135 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. DDiirreeccttllyy ppllaacceedd ppaappeerr 44 TToottaall 210,930 200,036 182,463r 171,605r 180,389" 169,423r 172,489r 175,868r 180,389" 182,075 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 66 NNoonnffiinnaanncciiaall ccoommppaanniieess55 131,279 147,914 133,370" 147,558r 155,739r 158,138r 156,114 155,227r 155,739" 158,235 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 62,972 54,771 43,770 38,194 32,348 33,041 33,069 31,997 32,348 31,792r 30,994 By holder 8 Accepting banks 9,433 9,017 11,017 10,555 12,325 12,522 12,332 12,475 12,325 11,317" 11,159 9 Own bills 8,510 7,930 9,347 9,097 10,611 10,679 10,886 10,853 10,611 9,860" 10,149 10 Bills bought from other banks 924 1,087 1,670 1,458 1,714 1,843 1,446 1,622 1,714 1,457 1,010 Federal Reserve Banks 11 Foreign correspondents 1,066 918 1,739 1,276 725 637 582 650 725 869 753 12 Others 52,473 44,836 31,014 26,364 19,298 19,882 20,155 18,872 19,298 19,605" 19,082 By basis 13 Imports into United States 15,651 13,095 12,843 12,209 10,217 10,773 10,810 10,368 10,217 1100,,664499"" 10,707 14 Exports from United States 13,683 12,703 10,351 8,0% 7,293 7,460 7,101 7,054 7,293 7,123" 6,872 15 All other 33,638 28,973 20,577 17,890 14,838 14,808 15,158 14,575 14,838 14,020" 13,414 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 Average Average Average Date of change Rate Period rate Period rate rate 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- 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 Apr. 19 6.75 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 Apr. 6.45 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 DomesticN onfinancialS tatistics • June 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 Dec. Jan. Feb. Mar. Feb. 25 Mar. 4 Mar. 11 Mar. 18 Mar. 25 MONEY MARKET INSTRUMENTS 2 1 F D e is d c e o ra u l n t f u w n i d n s d 1 o '2 w '3 borrowing 12 ' 5 5. . 4 6 5 9 3 3 . . 2 5 5 2 3 3. . 0 0 0 2 2 3. . 0 9 0 6 3 3 . . 0 0 5 0 3 3 . . 2 0 5 0 3 3 . . 3 0 4 0 3 3 . . 2 0 5 0 3 3 . . 2 0 8 0 3 3 . . 2 0 5 0 3 3. . 0 1 0 9 3 3. . 0 3 0 1 Commercial paper2,5,6 3 1-month 5.89 3.71 3.17 3.35 3.14 3.39 3.63 3.47 3.57 3.61 3.61 3.67 4 3-month 5.87 3.75 3.22 3.36 3.19 3.49 3.85 3.63 3.78 3.84 3.84 3.88 5 6-month 5.85 3.80 3.30 3.40 3.30 3.62 4.08 3.79 3.96 4.06 4.08 4.14 Finance paper, directly placed3'5'7 6 1-month 5.73 3.62 3.12 3.21 3.07 3.30 3.53 3.37 3.45 3.52 3.51 3.59 7 3-month 5.71 3.65 3.16 3.19 3.11 3.40 3.71 3.51 3.62 3.70 3.71 3.75 8 6-month 5.60 3.63 3.15 3.18 3.15 3.39 3.70 3.50 3.62 3.72 3.68 3.73 Bankers acceptances*'5,8 9 3-month 5.70 3.62 3.13 3.23 3.10 3.40 3.73 3.53 3.67 3.75 3.72 3.75 10 6-month 5.67 3.67 3.21 3.30 3.21 3.56 3.96 3.73 3.88 3.95 3.94 4.00 Certificates of deposit, secondary marker9 11 1-month 5.82 3.64 3.11 3.26 3.08 3.31 3.56 3.41 3.53 3.54 3.52 3.60 12 3-month 5.83 3.68 3.17 3.26 3.15 3.43 3.77 3.57 3.71 3.77 3.75 3.81 13 6-month 5.91 3.76 3.28 3.35 3.29 3.62 4.03 3.81 3.94 4.01 4.01 4.09 14 Eurodollar deposits, 3-month3'10 5.86 3.70 3.18 3.26 3.15 3.43 3.75 3.55 3.68 3.75 3.75 3.79 U. S. Treasury bills Secondary marker"5 15 3-month 5.38 3.43 3.00 3.06 2.98 3.25 3.50 3.35 3.47 3.52 3.52 3.49 16 6-month 5.44 3.54 3.12 3.23 3.15 3.43 3.78 3.58 3.68 3.77 3.81 3.81 17 1-year 5.52 3.71 3.29 3.45 3.39 3.69 4.11 3.82 3.95 4.09 4.11 4.15 Auction average ' ' 18 3-month 5.42 3.45 3.02 3.08 3.02 3.21 3.52 3.33 3.40 3.52 3.57 3.61 19 6-month 5.49 3.57 3.14 3.25 3.19 3.38 3.79 3.53 3.61 3.75 3.85 3.90 20 1-year 5.54 3.75 3.33 3.47 3.52 3.59 4.03 n.a. n.a. 4.03 n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 5.86 3.89 3.43 3.61 3.54 3.87 4.32 4.01 4.16 4.28 4.31 4.36 22 2-year 6.49 4.77 4.05 4.21 4.14 4.47 5.00 4.67 4.80 4.93 4.98 5.06 23 3-year 6.82 5.30 4.44 4.54 4.48 4.83 5.40 5.03 5.19 5.32 5.37 5.45 24 5-year 7.37 6.19 5.14 5.15 5.09 5.40 5.94 5.60 5.74 5.85 5.91 6.00 25 7-year 7.68 6.63 5.54 5.48 5.43 5.72 6.28 5.94 6.08 6.20 6.24 6.33 26 10-year 7.86 7.01 5.87 5.77 5.75 5.97 6.48 6.15 6.29 6.40 6.45 6.52 27 20-year n.a. n.a. 6.29 6.40 6.39 6.57 7.00 6.76 6.86 6.95 6.96 7.02 28 30-year 8.14 7.67 6.59 6.25 6.29 6.49 6.91 6.68 6.79 6.87 6.87 6.92 Composite 29 More than 10 years (long-term) 8.16 7.52 6.45 6.27 6.24 6.44 6.90 6.63 6.75 6.84 6.86 6.93 STATE AND LOCAL NOTES AND BONDS Moody's series13 30 6.56 6.09 5.38 5.18 5.14 5.06 5.29 5.12 5.12 5.27 5.32 5.35 31 Baa 6.99 6.48 5.82 5.69 5.60 5.52 5.74 5.58 5.58 5.72 5.78 5.80 32 Bond Buyer series 6.92 6.44 5.60 5.35 5.31 5.40 5.91 5.58 5.84 5.88 5.84 5.92 CORPORATE BONDS 33 Seasoned issues, all industries15 9.23 8.55 7.54 7.26 7.25 7.39 7.78 7.54 7.66 7.73 7.75 7.79 Rating group 34 Aaa 8.77 8.14 7.22 6.93 6.92 7.08 7.48 7.23 7.36 7.44 7.46 7.49 35 Aa 9.05 8.46 7.40 7.12 7.12 7.29 7.69 7.45 7.57 7.65 7.67 7.70 36 A 9.30 8.62 7.58 7.31 7.30 7.44 7.82 7.60 7.70 7.76 7.78 7.82 37 Baa 9.80 8.98 7.93 7.69 7.65 7.76 8.13 7.92 8.01 8.08 8.10 8.15 38 A-rated, recently offered utility bonds16 9.32 8.52 7.46 7.28 7.24 7.45 7.82 7.62 7.73 7.80 7.81 7.91 MEMO Dividend-price ratio17 39 Preferred stocks 8.17 7.46 6.89 7.01 6.97 7.00 7.07 7.07 7.03 6.86 7.07 7.10 40 Common stocks 3.24 2.99 2.78 2.72 2.69 . 2.70 2.78 2.72 2.77 2.75 2.74 2.76 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 m 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 206.35 229.00 249.71 247.85 251.93 254.86 257.53 255.93 257.73 262.11 261.97 257.32 2 Industrial 258.16 284.26 300.10 295.34 298.83 300.92 306.61 310.84 313.22 320.92 322.41 318.08 3 Transportation 173.97 201.02 242.68 238.30 250.82 247.74 254.04 262.% 268.11 278.29 276.67 265.68 4 Utility 92.64 99.48 114.55 116.27 118.72 122.32 120.49 115.08 114.97 112.67 116.22 107.72 5 Finance 150.84 179.29 216.55 218.89 224.% 229.35 228.18 214.08 216.00 218.71 217.12 211.02 6 Standard & Poor's Corporation (1941-43 = 10)' 376.20 415.75 451.63 447.29 454.13 459.24 463.90 462.89 465.95 472.99 471.58 446633..8811 7 American Stock Exchange (Aug. 31, 1973 = 50? 360.32 391.28 438.77 434.99 444.75 454.91 472.73 472.41 465.95 481.14 476.25 465.72 Volume of trading (thousands of shares) 8 New York Stock Exchange 179,411 202,558 263,374 247,574 247,324 261,770 280,503 277,886 259,457 313,223 307,269 311,0% 9 American Stock Exchange 12,486 14,171 n.a. 17,744 19,352 18,889 21,279 18,436 17,461 19,211 19,630 19,481 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 36,660 43,990 60,310 49,080 52,760 53,700 56,690 59,760 60,310 61,250 62,020 61,960 Free credit balances at brokers4 11 Margin accounts 8,290 8,970 12,360 9,585 9,480 10,030 10,270 10,940 12,360 12,125 12,890 13,185 12 Cash accounts 19,255 22,510 27,715 21,475 21,915 23,170 22,450 23,560 27,715 26,020 25,665 26,190 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 • June 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 Oct. Nov. Dec. Jan. Feb. Mar. U.S. budget1 1 Receipts, total l,054,272r 1,090,453 l,153,226r 78,668 83,107 125,408r 122,966r 72,874r 93,108 2 On-budget 760,388r 788,027 841,292r 55,864 58,700 99,714r 94,396r 46,879* 64,612 3 Off-budget 293,885 302,426 311,934 22,804 24,407 25,694 28,570 25,995 28,4% 4 Outlays, total l,323,793r l,380,856r l,407,910r 124,090 121,488 i33,66or 107,718r 114,440r 125,423 5 On-budget 1,082,106r l,128,518r l,141,898r 100,568 96,724 121,977r 83,527r 88,523r 100,260 6 Off-budget 241,687 252,339 266,012 23,523 24,764 11,682 24,191 25,918 25,163 7 Surplus or deficit (-), total -269,521 -290,403r -254,684 -45,422 -38,381 -8,252 15,248r —41,566r -32,315 8 On-budget -321,719 -340,490r -300,606 -44,704 -38,024 -22,263 10,869r —41,644r -35,648 9 Off-budget 52,198 50,087 45,922 -719 -357 14,012 4,379 77 3,333 Source of financing (total) 10 Borrowing from the public 276,802 310,918 248,619 4,255 71,028 13,995 -6,933 31,633 26,511 11 Operating cash (decrease, or increase (-)) ... -1,329 -17,305 6,283 33,646 -13,450 -17,413 -8,089 19,666 -6,461 12 Other -5,952 -218 7,521 -19,197 11,670 -226r —9,733r 12,265 MEMO 13 Treasury operating balance (level, end of period) 41,484 58,789 52,506 18,860 32,310 49,723 57,812 38,146 44,607 14 Federal Reserve Banks 7,928 24,586 17,289 6,032 6,334 14,809 21,541 4,886 6,181 15 Tax and loan accounts 33,556 34,203 35,217 12,828 25,977 34,914 36,271 33,259 38,426 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 A3 3 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year Source or type 1993 1994 1992 1993 HI H2 Feb. Mar. RECEIPTS 1 A11 sources 1,090,453 1,153,209 560,318 540,484 593,212 582,054R 122,966R 72,874R 93,108 2 Individual income taxes, net 475,964 509,680 236,576 246,938 255,556 262,073 74,167 28,107 29,917 4 5 3 P W N r o e it n s h w i h d i e e t l n h d t h i e al l d E lection Campaign Fund . 4 1 0 4 8 9 , , 3 3 5 4 3 2 2 0 4 1 3 5 0 4 , , 4 7 2 7 2 7 2 8 1 1 1 9 0 8 , , 9 8 9 6 2 5 8 0 2 3 1 9 5 , , 2 5 8 8 1 8 4 0 2 1 0 1 9 3 , , 7 4 4 2 9 5 5 5 r r 2 4 2 1 8 , , 7 42 6 9 5 2 3 3 7 6 , , 7 8 9 3 8 81 37 1 , , 3 15 3 1 1 5 0 4 4 2 , , 4 8 3 0 1 4 5 4 6 Refunds 81,760 75,546 73,308 7,942 67,468 8,114 470 10,388 17,336 Corporation income taxes 7 Gross receipts 117,951 131,548 61,682 58,022 69,044 68,266 4,761 2,888 17,234 8 Refunds 17,680 14,027 9,403 7,219 7,198 6,514 844 1,294 1,660 9 Social insurance taxes and contributions. net 413,689 428,300 224,569 192,599 227,177 206,174 36,983 35,989 36,957 10 Employment taxes and contributions2 385,491 396,939 208,110 180,758 208,776 192,749 35,831 32,957 35,976 11 Self-employment taxes and contributions3 24,421 20,604 20,434 3,988 16,270 4,335 -1,589 1,577 1,630 12 Unemployment insurance 23,410 26,556 14,070 9,397 16,074 11,010 794 2,664 522 13 Other net receipts4 4,788 4,805 2,389 2,445 2,326 2,417 358 367 459 14 Excise taxes 45,569 48,057 22,389 23,456 23,398 25,994 4,011 3,249 5,285 15 Customs deposits 17,359 18,802 8,146 9,497 8,860 10,215 1,526 1,419 1,745 16 Estate and gift taxes 11,143 12,577 5,701 5,733 6,494 6,617 1,105 1,093 1,211 17 Miscellaneous receipts3 26,459 18,273 10,658 11,458 9,879 9,227r 1,258r l,424r 2,418 OUTLAYS 18 All types L,380,794R 1,407,892 704,266 723,527 673,340 728,207R 107,718R 114,440* 125,423 19 National defense 298,350 290,590 147,065 155,231 140,535 146,177 18,861 21,996 24,476 2 2 2 2 2 0 2 1 3 4 E I G N A n n e a g t e e n t r u r i r e c g n r r u a y a a l l l t t i u r o s e r c n e s i a o e l u n a r c f c e f e , a s i s r p a s n a d c e, e n a v n i d r o t n e m ch e n n o t logy . 2 1 1 1 4 0 6 6 5 , , , , , 4 0 1 4 2 9 2 0 0 0 9 5 7 9 5 2 2 1 1 0 0 4 7 7 , , , , , 0 2 4 1 0 8 5 4 7 5 8 7 5 5 5 8 7 8 7 1 , , , , , 5 9 5 5 4 4 5 9 2 4 0 1 4 6 2 1 9 8 3 8 1 , , , , , 9 5 8 1 4 1 2 5 0 6 6 1 2 9 7 1 6 7 2 8 1 , , , , , 5 9 4 5 8 6 9 6 9 7 5 6 2 2 2 r r 1 1 8 7 0 1 1 , , , , , 3 9 5 6 0 3 0 3 4 7 5 4 4 1 7 1 1 1 1 , , , , 4 1 1 2 4 6 0 2 9 4 5 3 2 9 7 1 1 1 , , , 9 2 4 8 1 4 6 4 1 5 8 9 9 7 9 1 1 1 , , , 6 6 5 6 4 9 3 8 1 3 6 1 5 0 9 25 Commerce and housing credit 10,118 -23,532 15,615 -7,697 -15,112 -1,724 -1,124 -4,608 -1,260 26 Transportation 33,333 35,238 15,651 18,425 16,077 20,375 2,503 2,784 2,845 27 Community and regional development .. 6,838 10,395 3,903 4,464 4,929* 5,606 906 445 1,276 28 Education, training, employment, and social services 45,250 23,767 21,241 24,088r 25,515 2,693 2,666 2,285 29 Health 89,497 99,249 44,164 47,232 49,882 52,631 7,665 8,229 10,014 30 Social security and Medicare 406,569 435,137 205,500 232,109 195,933 223,735 36,009 37,224 40,350 31 Income security 196,891 207,788 104,537 98,382 108,090* 103,163 16,196 22,466 20,549 32 Veterans benefits and services 34,133 35,715 15,597 18,561 16,385 19,848 2,151 3,135 2,793 33 Administration of justice 14,426 15,001 7,435 7,238 7,486r 7,448 1,210 1,105 1,760 34 General government 12,945 13,039 5,050 8,223 5,205 6,565 669 782 779 35 Net interest6 ^ 199,439 198,870 100,161 98,692 99,635 99,963 17,095 15,524 16,594 36 Undistributed offsetting receipts' -39,280 -37,386 -18,229 -20,628 -17,035 -20,407 -2,914 -2,815 -2,999 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 fiind. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic NonfinancialS tatistics • June 1994 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1992 1993 1994 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 3,897 4,001 4,083 4,196 4,250 4,373 4,436 n.a. 4,576 2 Public debt securities 3,881 3,985 4,065 4,177 4,231 4,352 4,412 4,536 3 Held by public 2,918 2,977 3,048 3,129 3,188 3,252 3,295 4 T| 4 Held by agencies 964 1,008 1,016 1,048 1,043 1,100 1,117 I 5 Agency securities 16 16 18 19 20 21 25 n.a. n.a. 6 Held by public 16 16 18 19 20 21 25 I 1 7 Held by agencies 0 0 0 0 0 0 0 T • 8 Debt subject to statutory limit 3,784 3,891 3,973 4,086 4,140 4,256 4,316 4,446 4,491 9 Public debt securities 3,783 3,890 3,972 4,085 4,139 4,256 4,315 4,445 4,491 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 4,370 4,900 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 1994 TTyyppee aanndd hhoollddeerr 11999900 11999911 11999922 11999933 Q2 Q3 Q4 Q1 1 Total gross public debt 3,364.8 3,801.7 4,177.0 4,535.7 4,352.0 4,411.5 4,535.7 n.a. By type 2 Interest-bearing 3,362.0 3,798.9 4,173.9 4,532.3 4,349.0 4,408.6 4,532.3 4,572.6 3 Marketable 2,195.8 2,471.6 2,754.1 2,989.5 2,860.6 2,904.9 2,989.5 3,042.9 4 Bills 527.4 590.4 657.7 714.6 659.3 658.4 714.6 721.2 5 Notes 1,265.2 1,430.8 1,608.9 1,764.0 1,698.7 1,734.2 1,764.0 1,802.5 6 Bonds 388.2 435.5 472.5 495.9 487.6 497.4 495.9 504.2 7 Nonmarketable1 1,166.2 1,327.2 1,419.8 1,542.9 1,488.4 1,503.7 1,542.9 1,529.7 8 State and local government series 160.8 159.7 153.5 149.5 152.8 149.5 149.5 145.5 9 Foreign issues 43.5 41.9 37.4 43.5 43.0 42.5 43.5 42.7 10 Government 43.5 41.9 37.4 43.5 43.0 42.5 43.5 42.7 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 124.1 135.9 155.0 169.4 164.4 167.0 169.4 172.6 13 Government account series 813.8 959.2 1,043.5 1,150.0 1,097.8 1,114.3 1,150.0 1,138.4 14 Non-interest-bearing 2.8 2.8 3.1 3.4 2.9 2.9 3.4 3.3 By holder 4 15 U.S. Treasury and other federal agencies and trust funds 828.3 968.7 1,047.8 1,099.8 1,116.7 16 Federal Reserve Banks 259.8 281.8 302.5 328.2 325.7 17 Private investors 2,288.3 2,563.2 2,839.9 2,938.4 2,983.0 18 Commercial banks 171.5 233.4 294.0 305.9 306.0 19 Money market funds 45.4 80.0 79.4 76.2 75.2 20 Insurance companies 142.0 168.7 197.5 208.1 210.0 21 Other companies 108.9 150.8 192.5 n.a. 206.1 215.6 n.a. n.a. 22 State and local treasuries 490.4 520.3 534.8 553.9 558.0 Individuals 23 Savings bonds 126.2 138.1 157.3 166.5 169.1 24 Other securities 107.6 125.8 131.9 136.4 136.7 25 Foreign and international 458.4 491.8 549.7 568.2 592.3 26 Other miscellaneous investors6 637.7 651.3 702.4 717.0 720.0 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 A3 3 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1993 1994 1994, week ending IItteemm Dec. Jan. Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 42,139 51,660" 53,692r 57,374r 65,174 44,202 50,294 53,580 53,776 5500,,665533 4466,,667722 6633,,440000 Coupon securities, by maturity 2 Less than 3.5 years 37,291 52,525r 68,772r 59,124r 95,688 50,675 66,889 63,646 5577,,113322 5588,,000044 6666,,115577 5588,,887700 3 3.5 to 7.5 years 29,891 41,483r 48,599r 46,071r 55,514 38,275 52,094 50,142 42,912 43,675 48,436 43,769 4 7.5 to 15 years 16,803 26,382 34,565r 34,738 44,273 29,700 31,114 32,128 31,527 30,978 29,040 31,054 5 15 years or more 13,247 18,752 22,524 23,359 21,878 24,767 21,965 20,234 19,682 21,105 19,341 19,170 Federal agency securities Debt, by maturity 6 Less than 3.5 years 9,999 11,346 11,177 11,695 12,040 9,213 11,248 12,548 12,109 12,609 1133,,228888 1133,,774400 7 3.5 to 7.5 years 531 715 695 540 575 845 781 602 730 615 740 613 8 7.5 years or more 466 558 525 480 607 581 414 509 693 392 440 601 Mortgage-backed 9 Pass-throughs 19,332 25,587r 23,256r 19,409 23,529 27,212 18,991 25,878 27,178 27,923 2211,,110088 2222,,331199 10 All others 2,771 3,657 3,807 3,308 3,414 3,669 4,361 4,098 3,746 3,450 2,794 3,361 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 84,926 117,681 144,393r 137,100 180,207 118,464 139,745 140,529 135,634 134,528 113355,,007733 113388,,996666 Federal agency securities 12 Debt 1,308 1,763 1,666 1,723 1,711 1,285 1,753 2,041 2,248 1,907 1,911 11,,996611 13 Mortgage-backed 9,057 12,881 11,337 9,178 9,532 12,938 10,895 13,855 12,146 11,650 11,879 12,896 Customers 14 U.S. Treasury securities 54,446 73,120r 83,759" 83,566r 102,320 69,156 82,611 79,201 69,395 69,886 74,575 77,296 Federal agency securities 15 Debt 9,688 10,856 10,731 10,992 11,511 9,353 10,691 11,618 11,283 11,709 1122,,555577 1122,,999933 16 Mortgage-backed 13,045 16,362r 15,725r 13,539 17,411 17,943 12,457 16,121 18,778 19,723 12,023 12,785 FUTURES AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 1,740 2,250 3,094r 4,523 3,007 1,827 2,382 5,586 2,581 4,109 33,,554477 22,,886655 Coupon securities, by maturity 18 Less than 3.5 years l,757r 2,232r 3,197 2,774 3,071 2,306 3,806 4,162 3,546 33,,005599 44,,444444 22,,226655 19 3.5 to 7.5 years 1,809 1,905 2,836 1,647 2,540 2,217 3,593 3,895 2,411 1,841 3,034 1,889 20 7.5 to 15 years 2,930 3,238 5,007 3,604 5,151 3,562 6,043 6,383 4,791 5,129 5,489 4,018 21 15 years or more 8,686 11,933 13,903 13,964 14,807 11,021 14,876 15,534 14,095 15,741 13,061 12,808 Federal agency securities Debt, by maturity 22 Less than 3.5 years 29 123 237 159 86 247 418 220 94 100 226644 226699 23 3.5 to 7.5 years 49 127 211 411 142 185 236 194 202 186 92 36 24 7.5 years or more 83 70 201 32 11 287 439 92 99 147 28 49 Mortgage-backed 25 Pass-throughs 17,807 26,040 24,726 27,249 36,883 25,163 13,190 21,282 33,885 3344,,221177 1177,,339999 1155,,559977 26 Others3 1,746 l,891r 2,198r 2,871r 3,281 1,871 1,718 1,289 1,032 2,030 2,281 887 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,662 2,216 3,329 2,370 3,343 2,578 4,679 2,948 3,185 3,538 33,,445500 3,134 28 3.5 to 7.5 years 360 808 899 961 743 848 1,116 839 1,200 1,197 1,340 1,388 29 7.5 to 15 years 768 1,262 1,613 1,168 1,145 1,633 2,450 1,262 1,118 680 1,403 1,907 30 15 years or more 1,372 2,086 2,554 1,589 2,370 2,522 3,421 2,113 1,684 2,724 1,919 2,081 Federal agency, mortgagebacked securities 31 Pass-throughs 548 954 952 742 1,212 674 821 1,341 997 899 337722 660000 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 • June 1994 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1993 1994 1994, week ending IItteemm Dec.r Jan.r Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Positions2 NET IMMEDIATE POSITIONS3 By type of security U.S. Treasury securities 1 Bills 15,015 6,629 3,681' -343 77,,441166 55,,771188 465 11,,771144 22,,444477 77,,771111 77,,111100 Coupon securities, by maturity 2 Less than 3.5 years -8,140 -8,303 -9,169 -6,068 -6,720 -8,940 -8,008 -15,782 -15,355 -21,683 -19,226 3 3.5 to 7.5 years -18,821 -20,637 -24,417r -21,360 -23,617 -22,428 -29,671 -22,189 -26,847 -27,341 -23,722 4 7.5 to 15 years -1,972 -3,361 -2,424r -3,481 1,617 -3,004 -4,872 -3,417 -3,685 -4,530 -2,508 5 15 years or more 1,264 8,246 5,994 5,100 3,133 6,983 99,,226699 44,,338866 44,,779944 22,,779955 11,,336644 Federal agency securities Debt, by maturity 6 Less than 3.5 years 8,276 10,272 12,031 15,768 12,975 11,561 10,737 11,686 10,740 9,321 7,993 7 3.5 to 7.5 years 3,369 2,888 3,226 3,129 2,857 2,958 3,309 4,039 4,205 4,803 4,881 8 7.5 years or more 4,550 4,987 3,798 4,539 44,,118855 33,,555511 33,,552288 33,,668855 44,,008877 44,,660066 44,,336633 Mortgage-backed 9 Pass-throughs 39,366 50,003 51,071 48,771 54,981 52,310 49,358 47,180 63,827 61,349 51,511 10 All others 25,834 29,844 28,837 28,932 28,439 2277,,005522 2288,,118888 3322,,776611 3322,,111188 3300,,994455 2299,,665500 Other money market instruments 11 Certificates of deposit 3,489 3,650 3,925 3,894 4,161 4,250 3,176 44,,119988 2,761 2,457 2,264 12 Commercial paper 7,587 6,313 7,619 9,135 8,248 7,683 6,030 88,,226655 5,795 5,450 5,212 13 Bankers acceptances 1,183 935 777 964 817 946 643 599 598 758 390 FUTURES AND FORWARD POSITIONS5 By type of deliverable security U.S. Treasury securities 14 Bills 205 -2,569 — l,382r -4,021 -2,527 --22,,446611 -160 11,,007766 11,,441155 11,,009900 22,,779933 Coupon securities, by maturity 15 Less than 3.5 years -1,464 -1,123 -175r 166 -2,104 -1,379 212 3,535 2,259 2,020 3,792 16 3.5 to 7.5 years 557 1,629 2,477r -335 942 3,080 4,235 2,444 2,128 2,933 3,722 17 7.5 to 15 years 8,414 5,755 8,054r 3,504 7,821 7,676 9,430 8,801 9,236 8,750 11,494 18 15 years or more -4,030 -4,183 —6,625r -4,924 -6,042 -6,411 --55,,443355 --1100,,008888 --1100,,441133 --99,,990088 --1100,,994411 Federal agency securities Debt, by maturity 19 Less than 3.5 years 34 246 3 80 2 16 7 -53 64 11 309 20 3.5 to 7.5 years 90 303 123 134 71 169 254 -54 318 343 -51 21 7.5 years or more 48 -93 438 38 6 621 708 567 395 -545 -626 Mortgage-backed 22 Pass-throughs -11,058 -28,675 -37,285r -32,860 -40,939 -38,723 -36,011 -33,707 -47,801 -51,160 -39,211 23 AH others 4,423 3,294 8,687 8,394 8,614 8,795 9,639 7,424 8,774 11,900 12,590 24 Certificates of deposit -227,414 -225,011 -241,652 -232,103 -258,194 -243,572 -229,019 -237,312 -247,206 -170,162 -154,511 Financing6 Reverse repurchase agreements 25 Overnight and continuing 226,529 250,861 274,179 267,375 265,299 280,878 266,931 290,102 300,486 308,744 304,633 26 Term 392,777 401,867 409,887 394,628 449,254 3%,888 409,508 379,608 395,569 400,875 400,260 Repurchase agreements 27 Overnight and continuing 441,518 461,215 483,847 484,886 455,818 503,188 485,837 492,811 489,948 497,689 488,715 28 Term 368,885 372,657 382,705 366,891 423,858 374,698 382,508 342,902 364,255 381,800 382,725 Securities borrowed 29 Overnight and continuing 139,290 143,505 147,476r 143,948r 144,288 145,762 151,063 150,726 149,201 152,565 152,911 30 Term 47,116 51,583 45,587r 50,276r 48,518 46,978 43,047 41,215 42,796 39,941 37,953 Securities loaned 31 Overnight and continuing 5,507 5,113 5,444r 5,164r 4,879 6,185 5,924 4,636 4,560 4,631 4,887 32 Term 2,304 167 294r 161r 111 374 348 416 339 338 369 Collateralized loans 33 Overnight and continuing 16,326 16,169 16,243 15,574 16,176 17,752 15,717 15,229 16,722 20,122 19,540 MEMO: Matched book7 Reverse repurchase agreements 34 Overnight and continuing 153,280 175,650 182,784 189,701 174,113 188,274 179,836 188,596 194,285 202,241 207,929 35 Term 345,268 361,748 359,530 351,253 395,473 347,635 357,398 332,157 351,434 350,853 348,948 Repurchase agreements 36 Overnight and continuing 210,901 238,867 240,887 245,142 232,060 240,016 243,031 249,763 249,052 247,667 245,543 37 Term 275,439 281,109 290,676 280,929 331,767 283,985 283,792 256,051 275,308 289,605 292,353 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 mortjgage obligations (CMOs), real in the financing breakdowns given above. The reverse repurchase and repurchase estate mortgage investment conduits (REMICs), interest-only securities (iOs), numbers are not always equal because of the "matching" of securities of different and principal-only securities (POs). values or different types of collateralization. 5. Futures positions reflect standardized agreements arranged on an exchange. NOTE. Data for futures and forward commercial paper and bankers acceptances and Forward positions reflect agreements made in the over-the-counter market that for term financing of collateralized loans are no longer available because of insufficient specify delayed delivery. All futures positions are included regardless of time to activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1993 1994 AAggeennccyy 11998899 11999900 11999911 11999922 Sept. Oct. Nov. Dec. Jan. 1 Federal and federally sponsored agencies 411,805 434,668 442,772 483,970 0 0 0 0 0 2 Federal agencies 35,664 42,159 41,035 41,829 43,753 43,796 44,055 45,193r 44,988 3 Defense Department' 7 7 7 7 7 7 7 6r 6 4 Export-Import Bank2,3 10,985 11,376 9,809 7,208 5,801 5,801 5,801 5,315 5,315 5 Federal Housing Administration 328 393 397 374 213 243 255 255 80 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 9,732 9,732 9,732 9,732 9,732 8 Tennessee Valley Authority 17,899 23,435 22,401 23,580 28,000 28,016 28,260 29,885 29,855 9 United States Railway Association6 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 375,428 392,509 401,737 442,141 0 0 0 0 0 11 Federal Home Loan Banks 136,108 117,895 107,543 114,733 132,651 133,365 139,364 141,577 139,241 12 Federal Home Loan Mortgage Corporation 26,148 30,941 30,262 29,631 52,702 63,427 56,809 49,993 61,245 13 Federal National Mortgage Association 116,064 123,403 133,937 166,300 195,786 193,925 195,165 201,112 203,013 14 Farm Credit Banks8 54,864 53,590 52,199 51,910 51,636 51,759 51,861 53,123 52,621 15 Student Loan Marketing Association 28,705 34,194 38,319 39,650 38,795 38,790 40,840 39,784 0 16 Financing Corporation1 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 0 17 Farm Credit Financial Assistance Corporation" 847 1,261 1,261 1,261 1,261 1,261 1,261 1,261 0 18 Resolution Funding Corporation 4,522 23,055 29,9% 29,996 29,9% 29,9% 29,9% 29,9% 0 MEMO 19 Federal Financing Bank debt13 134,873 179,083 185,576 154,994 129,329 127,348 126,490 128,187 125,182 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 10,979 11,370 9,803 7,202 5,795 5,795 5,795 5,309 55,,330099 21 Postal Service6 6,195 6,698 8,201 10,440 9,732 9,732 9,732 9,732 9,732 22 Student Loan Marketing Association 4,880 4,850 4,820 4,790 4,790 4,760 4,760 4,760 2,760 23 Tennessee Valley Authority 16,519 14,055 10,725 6,975 6,325 6,325 6,325 6,325 6,075 24 United States Railway Association 0 0 0 0 0 0 0 0 0 Other lending14 25 Farmers Home Administration 53,311 52,324 48,534 42,979 38,619 38,619 38,619 38,619 38,619 26 Rural Electrification Administration 19,265 18,890 18,562 18,172 17,653 17,561 17,561 17,578 17,511 27 Other 23,724 70,896 84,931 64,436 46,415 44,556 43,698 45,864 45,176 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 NonfinancialS tatistics • June 1994 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1993 1994 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11999911 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan.r Feb/ Mar. 1 All issues, new and refunding1 154,402 215,191 279,945 24,438 23,504 21,900 18,094 24,520 16,560 14,698 15,461 By type of issue 2 General obligation 55,100 78,611 90,599 6,414 5,884 7,495 6,422 6,542 4,622 4,365 7,371 3 Revenue 99,302 136,580 189,346 18,024 17,620 14,405 11,672 17,978 11,000 8,553 8,090 By type of issuer 4 State 24,939 25,295 28,285 2,319 2,758 3,216 885 1,265 1,235 921 3,302 5 Special district or statutory authority2 80,614 129,686 164,169 13,769 13,113 9,875 10,992 16,485 10,672 10,263 6,145 6 Municipality, county, or township 48,849 60,210 84,972 8,307 7,476 8,418 4,528 6,770 4,653 3,514 6,014 7 Issues for new capital 116,953 120,272 91,434 8,001 8,759 7,261 6,734 9,543 5,418 8,268 10,114 By use of proceeds 8 Education 21,121 22,071 17,098 1,883 1,886 547 1,416 1,227 1,573 2,292 1,859 9 Transportation 13,395 17,334 9,571 1,062 789 304 979 429 293 1,223 401 10 Utilities and conservation 21,039 20,058 11,802 1,646 1,255 593 687 1,454 480 243 540 11 Social welfare 25,648 21,7% n.a. 681 2,199 1,764 n.a. 2,171 825 1,660 1,670 12 Industrial aid 8,376 5,424 6,381 212 329 518 673 1,272 392 1,316 470 13 Other purposes 30,275 33,589 29,519 2,544 2,362 3,737 1,820 2,990 5,558 8,774 n.a. 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,, oorr iissssuueerr 11999911 11999922 11999933 July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. 1 All issues' 465,246 559,729 n.a. 47,628r 52,955r 64,53®r 56,143r 54,808r 44,313r 55,448 47,778 2 Bonds2 389,822 471,404 n.a. 38,032r 43,688r 53,837' 45,608r 43,214r 33,782r 49,411 39,037 By type of offering 3 Public, domestic 286,930 377,960 488,895 37,392 40,447 49,132r 42,645r 39,525r 32,201r 44,161 31,761 4 Private placement, domestic3 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,%2 27,591 41,533 640r 3,241r 4,705r 2,%3r 3,689r l,582r 5,250 7,276 By industry group 6 Manufacturing 86,628 82,058 67,411 2,498 6,132 4,036r 3,273 3,334r 3,068 4,585 3,411 7 Commercial and miscellaneous 36,666 43,043 37,873 4,735r 2,331 2,378r 6,306r 3,078 2,525r 2,869 2,445 8 Transportation 13,598 9,979 8,234 611 723 288 1,416 648r 895r 693 100 9 Public utility 23,944 48,055 52,742 5,797 3,474 5,163 2,585 1,763 2,336 2,566 1,853 10 Communication 9,431 15,394 29,040 2,331 2,979 2,237 2,991 1,015 2,001 2,495 2,212 11 Real estate and financial 219,555 272,875 335,127 22,060"^ 28,049r 39,735r 29,039* 33,376r 22,958r 36,203 29,016 12 Stocks2 75,424 88,325 n.a.r 9,596 9,267 10,693 10,535 11,594 10,531 6,037 8,741 By type of offering 13 Public preferred 17,085 21,339 20,533 1,913 3,319 1,358 2,549 1,385 650 1,592 1,198 14 Common 48,230 57,118 90,559 7,683 5,948 9,336 7,987 10,209 9,881 4,444 7,543 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 22,271 1,618 1,961 2,274 2,121 2,169 2,267 1,564 1,807 17 Commercial and miscellaneous 19,418 20,231 25,761 2,525 1,457 2,242 1,842 3,061 1,970 1,516 1,682 18 Transportation 2,439 2,595 2,237 114 466 153 128 221 162 78 703 19 Public utility 3,474 6,532 7,050 495 582 908 1,103 371 129 293 203 20 Communication 475 2,366 3,439 n.a. 115 248 18 1,074 1,603 n.a. 120 21 Real estate and financial 25,507 33,879 49,889 4,844 4,675 4,666 5,323 4,486 4,381 2,584 4,064 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 July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. 1 Sales of own shares2 647,055 n.a. 72,503 73,032 69,938 74,490 72,865 89,775 98,679 78,033 2 Redemptions of own shares 447,140 n.a. 44,922 46,382 49,270 47,168 51,306 62,764 61,829 54,473 3 Net sales3 199,915 n.a. 27,581 26,650 20,667 27,322 21,559 27,011 36,849 23,560 4 Assets4 1,056,310 n.a. 1,284,842 1,343,920 1,370,654 1,411,628 1,416,841 1,510,047 1,572,907 1,561,788 5 Cash5 73,999 n.a. 93,345 92,771 96,848 104,301 103,352 100,209 110,022 113,939 6 Other 982,311 n.a. 1,191,497 1,251,149 1,273,807 1,307,327 1,303,489 1,409,838 1,462,879 1,447,850 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 369.5 407.2 467.3 409.9 411.7 367.5 439.5 432.1 458.1 468.5 510.5 2 Profits before taxes 362.3 395.4 450.0 404.3 409.5 357.9 409.9 419.8 445.6 443.8 491.0 3 Profits tax liability 129.8 146.3 174.3 147.0 153.0 130.1 155.0 160.9 173.3 169.5 193.6 4 Profits after taxes 232.5 249.1 275.7 257.3 256.5 227.8 254.9 258.9 272.3 274.3 297.4 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 98.6 106.7 119.3 110.4 72.7 92.0 91.4 103.9 104.6 127.0 7 Inventory valuation 4.9 -5.3 -7.1 -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 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 1 Total nonfarm business 546.60 585.64 632.76 547.40 559.24 564.13 579.79 594.11 604.51 621.28 624.99 Manufacturing 2 Durable goods industries 73.32 81.33 89.09 72.09 73.30 79.11 80.88 81.99 83.35 91.81 87.68 3 Nondurable goods industries 100.69 97.84 103.60 100.77 103.56 95.94 96.21 100.18 99.04 99.42 101.41 Nonmanufacturing 4 Mining 8.88 10.03 10.63 8.98 8.47 8.89 9.10 11.14 10.98 10.84 11.51 Transportation 5 Railroad 6.67 6.23 6.30 6.70 7.04 6.00 6.00 5.91 7.01 5.67 5.91 6 Air 8.93 6.43 4.69 9.69 7.60 7.30 6.54 6.92 4.95 5.58 5.38 7 Other 7.04 9.22 10.27 7.52 6.97 9.17 9.04 8.88 9.78 8.81 9.27 Public utilities 8 Electric 48.22 52.26 52.96 48.17 49.57 49.92 50.51 52.74 55.88 51.14 53.66 9 Gas and other 23.99 23.46 25.32 24.01 24.50 23.59 24.04 22.88 23.33 22.55 23.94 10 Commercial and other 268.84 298.83 329.90 269.46 278.24 284.21 297.46 303.47 310.20 325.47 326.23 1. Figures are amounts anticipated by business. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. "Other" consists of construction, wholesale and retail trade, finance and insurance, personal and business services, and communication. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • June 1994 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1992 1993 AAccccoouunntt 11999911 11999922 11999933 Q2 Q3 Q4 Ql Q2 Q3 Q4 ASSETS 1 Accounts receivable, gross2 480.6 482.1 476.1 476.7 473.9 482.1 469.6 469.3 467.6 476.1 2 Consumer 121.9 117.1 117.5 116.7 116.7 117.1 111.9 111.3 112.6 117.5 3 Business 292.9 296.5 290.1 293.2 288.5 296.5 289.6 290.7 287.8 290.1 4 Real estate 65.8 68.4 68.6 66.8 68.8 68.4 68.1 67.2 67.2 68.6 5 LESS: Reserves for unearned income 55.1 50.8 48.6 51.2 50.8 50.8 47.4 47.5 47.9 48.6 6 Reserves for losses 12.9 15.8 11.0 12.3 12.0 15.8 15.5 13.8 11.1 11.0 7 Accounts receivable, net 412.6 415.5 416.5 413.2 411.1 415.5 406.6 408.0 408.6 416.5 8 All other 149.0 150.6 176.9 139.4 146.5 150.6 155.0 156.6 169.7 176.9 9 Total assets 561.6 566.1 593.4 552.6 557.6 566.1 561.6 564.6 578.3 593.4 LIABILITIES AND CAPITAL 10 Bank loans 42.3 37.6 25.3 37.8 38.1 37.6 34.1 29.5 25.8 25.3 11 Commercial paper 159.5 156.4 159.2 147.7 153.2 156.4 149.8 144.5 149.9 159.2 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 34.5 37.8 46.1 34.8 34.9 37.8 41.9 46.4 47.9 46.1 15 Not elsewhere classified 191.3 195.3 199.9 191.9 191.4 195.3 195.1 195.8 198.1 199.9 16 All other liabilities 69.0 71.2 91.1 73.4 73.7 71.2 74.2 81.3 87.6 91.1 17 Capital, surplus, and undivided profits 64.8 67.8 71.7 67.1 68.1 67.8 66.6 67.1 68.9 71.7 18 Total liabilities and capital 561.2 566.1 593.4 552.7 559.4 566.1 561.7 564.6 578.3 593.4 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 Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 11 TToottaall 519,910 534,845 532,828 527,819 529,310 532,687 532,828 535,567 539,515 22 CCoonnssuummeerr 154,822 157,707 159,791 154,707 155,700 157,438 159,791 159,313 160,426 33 RReeaall eessttaattee22 65,383 68,011 68,174 66,871 67,983 68,540 68,174 69,441 69,563 44 BBuussiinneessss 299,705 309,127 304,863 306,241 305,627 306,709 304,863 306,813 309,526 Not seasonally adjusted 5 Total 523,192 538,158 536,124 524,937 528,869 532,354 536,124 535,138 6 Consumer 155,713 158,631 160,734 155,4% 156,712 157,848 160,734 159,186 7 Motor vehicles 63,415 57,605 55,274 55,057 54,324 55,337 55,274 56,509 8 Other consumer 58,522 59,522 62,189 57,588 58,278 59,463 62,189 61,427 9 Securitized motor vehicles4 23,166 29,775 34,659 33,549 35,212 34,301 34,659 32,924 10 Securitized other consumer4 10,610 11,729 8,611 9,302 8,898 8,747 8,611 8,325 11 Real estate2 65,760 68,410 68,577 67,212 68,425 68,718 68,577 69,385 12 Business 301,719 311,118 306,814 302,229 303,732 305,788 306,814 306,568 13 Motor vehicles 90,613 87,456 90,172 86,019 86,129 88,510 90,172 88,377 14 Retail5..., 22,957 19,303 16,024 18,365 16,599 16,723 16,024 16,%5 15 Wholesale6 31,216 29,962 31,067 25,458 27,144 29,260 31,067 27,975 16 Leasing 36,440 38,191 43,081 42,1% 42,386 42,526 43,081 43,437 17 Equipment 141,399 151,607 148,858 147,905 148,357 146,703 148,858 147,915 18 Retail 30,962 32,212 33,266 33,789 33,357 32,360 33,266 33,109 19 Wholesale6 9,671 8,669 8,007 8,113 8,091 7,802 8,007 7,9% 20 Leasing 100,766 110,726 107,585 106,004 106,909 106,541 107,585 106,810 21 Other business 60,900 57,464 51,054 53,861 53,%9 53,886 51,054 50,821 22 Securitized business assets4 8,807 14,590 16,730 14,444 35,277 16,690 16,730 19,456 23 Retail 576 1,118 1,830 1,168 1,690 1,953 1,830 1,6% 24 Wholesale 5,285 8,756 9,697 8,529 8,785 9,407 9,697 12,358 25 Leasing 2,946 4,716 5,203 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 FbRalAanSceEs Rar e 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 11999922 11999933 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 155.0 158.1 163.1 155.3 169.2 174.4 167.9 168.1 157.9 167.8 2 Amount of loan (thousands of dollars) 114.0 118.1 123.0 120.8 128.4 134.0 128.7 127.9 124.1 131.0 3 Loan-to-price ratio (percent) 75.0 76.6 78.0 78.5 78.0 79.1 79.2 78.0 80.2 80.2 4 Maturity (years) 26.8 25.6 26.1 26.5 26.7 26.9 26.8 27.2 27.0 27.6 5 Fees and charges (percent of loan amount)2 1.71 1.60 1.30 1.13 1.23 1.23 1.10 1.18 1.16 1.20 Yield (percent per year) 6 Contract rate1 9.02 7.98 7.02 6.76 6.61 6.61 6.74 6.77 6.67 6.81 7 Effective rate1'3 9.30 8.25 7.24 6.95 6.80 6.80 6.92 6.95 6.85 6.99 8 Contract rate (HUD series)4 9.20 8.43 7.37 6.94 7.05 7.38 7.26 7.13 7.54 8.31 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 9.25 8.46 7.46 7.03 7.08 7.51 7.52 7.05 7.59 8.57 10 GNMA securities6 8.59 7.71 6.65 6.15 6.11 6.61 6.58 6.45 6.72 7.40 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 122,837 142,833 172,791 180,057 182,524 185,463 190,861 194,441 1%,078 197,770 12 FHA/VA insured 21,702 22,168 22,876 22,810 22,978 23,334 23,857 23,7% 23,789 24,226 13 Conventional 101,135 120,664 149,914 157,247 159,546 162,129 167,004 170,645 172,289 173,544 Mortgage transactions (during period) 14 Purchases 37,202 75,905 92,037 8,866 8,780 8,979 12,123 7,919 5,427 5,820 Mortgage commitments (during period) 15 Issued 40,010 74,970 92,537 9,814 7,515 11,144 8,461 6,159 4,858 8,683 16 To sell8 7,608 10,493 5,097 0 0 0 209 664 525 136 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 24,131 29,959 42,789 46,858 50,108 52,933 55,012 56,067 57,245 58,498 18 FHA/VA insured 484 408 327 323 321 324 321 319 318 n.a. 19 Conventional 23,283 29,552 42,462 46,536 49,787 52,610 54,691 55,747 56,928 n.a. Mortgage transactions (during period) 20 Purchases 99,965 191,125 229,242 18,372 18,658 27,062 29,3% 22,611 17,840 15,970 21 Sales 92,478 179,208 208,723 16,230 15,985 24,028 26,607 21,253 16,719 14,486 Mortgage commitments (during period)9 22 Contracted 114,031 261,637 274,599 16,495 24,614 39,977 24,176 31,393 12,880 22,533 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on fully modified pass-through securities major institutional lender groups for purchase of newly built homes; compiled by backed by mortgages and guaranteed by the Government National Mortgage the Federal Housing Finance Board in cooperation with the Federal Deposit Association (GNMA), assuming prepayment in twelve years on pools of thirty- Insurance Corporation. year mortgages insured by the Federal Housing Administration or guaranteed by 2. Includes all fees, commissions, discounts, and "points" paid (by the the Department of Veterans Affairs. borrower or the seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby com- 3. Average effective interest rate on loans closed for purchase of newly built mitments converted. homes, assuming prepayment at the end of ten years. 8. Includes participation loans as well as whole loans. 4. Average contract rate on new commitments for conventional first mort- 9. Includes conventional and government-underwritten loans. The Federal gages; from U.S. Department of Housing and Urban Development (HUD). Based Home Loan Mortgage Corporation's mortgage commitments and mortgage transon transactions on the first day of the subsequent month. actions include activity under mortgage securities swap programs, whereas the 5. Average gross yield on thirty-year, minimum-downpayment first mort- corresponding data for FNMA exclude swap activity. gages insured by the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic NonfinancialS tatistics • June 1994 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1992 1993 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999900 11999911 11999922 Q4 Ql Q2 Q3 (54" 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 80,441 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 institutions3 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 Administration 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 83,7% 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 14,973 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 Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Total 733,510 741,093 790,082 768,573 775,620 782,561 790,082 796,458r 800,000 2 Automobile 260,898 259,627 278,321 270,650 273,822 276,853 278,321 279,046r 280,206 3 Revolving.. 243,564 254,299 281,474 273,703 277,125 279,273 281,474 284,898r 287,318 4 Other 229,048 227,167 230,288 224,220 224,673 226,435 230,288 232,514r 232,476 Not seasonally adjusted 5 Total 749,052 756,944 807,298 770,384 776,101 784,148 807,298 801,883r 797,949 By major holder 6 Commercial banks 340,713 331,869 367,140 349,699 352,559 358,429 367,140 365,607r 365,133 7 Finance companies 121,937 117,127 117,464 112,645 112,602 114,800 117,464 117,937 118,149 8 Credit unions 92,681 97,641 114,451 109,687 110,830 112,342 114,451 115,055 115,545 9 Retailers 39,832 42,079 47,382 39,842 40,310 42,047 47,382 44,986 43,164 10 Savings institutions 45,965 43,461 33,000 34,985 34,251 33,500 33,000 32,500 32,000 11 Gasoline companies 4,362 4,365 4,212 4,574 4,599 4,507 4,212 4,189 3,952 12 Pools of securitized assets 103,562 120,402 123,649 118,952 120,950 118,523 123,649 121,609 120,006 By mqjor type of credit3 13 Automobile 261,219 259,964 278,690 273,291 275,882 277,060 278,690 278,265r 278,497 14 Commercial banks 112,666 109,743 123,734 120,574 122,162 122,989 123,734 123,916r 124,491 15 Finance companies 63,415 57,605 55,274 55,057 54,324 55,337 55,274 56,509 56,963 16 Pools of securitized assets 28,915 33,878 36,781 36,123 37,630 36,569 36,781 34,947 34,217 17 Revolving 256,876 267,949 296,445 272,579 275,109 280,080 2%,445 290,197r 286,255 18 Commercial banks 138,005 132,582 148,698 136,738 137,844 142,382 148,698 144,874r 143,592 19 Retailers 34,712 36,629 41,378 34,214 34,668 36,319 41,378 39,057 37,293 20 Gasoline companies 4,362 4,365 4,212 4,574 4,599 4,507 4,212 4,189 3,952 21 Pools of securitized assets 63,595 74,243 77,416 72,646 73,556 72,357 77,416 77,280 76,581 22 Other 230,957 229,031 232,162 224,514 225,110 227,008 232,162 233,420" 233,197 23 Commercial banks 90,042 89,544 94,708 92,387 92,553 93,058 94,708 96,817r 97,050 24 Finance companies 58,522 59,522 62,189 57,588 58,278 59,463 62,189 61,427 61,186 25 Retailers 5,120 5,450 6,004 5,628 5,642 5,728 6,004 5,929 5,871 26 Pools of securitized assets 11,052 12,281 9,452 10,183 9,764 9,597 9,452 9,382 9,208 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks2 1 48-month new car 11.14 9.29 8.09 7.98 n.a. n.a. 7.63 n.a. n.a. 7.54 2 24-month personal 15.18 14.04 13.47 13.45 n.a. n.a. 13.22 n.a. n.a. 12.89 3 120-month mobile home 13.70 12.67 11.87 11.53 n.a. n.a. 11.55 n.a. n.a. 11.56 4 Credit card 18.23 17.78 16.83 16.59 n.a. n.a. 16.30 n.a. n.a. 16.06 Auto finance companies 5 New car 12.41 9.93 99..4488 9.21 9.21 9.25 8.% 8.80 7.55 8.93 6 Used car 15.60 13.80 12.79 12.48 12.52 12.58 12.41 12.33 12.02 12.23 OTHER TERMS3 Maturity (months) 7 New car 55.1 54.0 54.5 54.9 54.7 55.0 54.5 54.0 52.9 54.4 8 Used car 47.2 47.9 48.8 49.0 48.8 48.2 48.4 48.3 50.0 50.3 Loan-to-value ratio 9 New car 88 89 91 91 91 90 91 90 91 91 10 Used car 96 97 98 99 98 98 98 98 98 99 Amount financed (dollars) 11 New car 12,494 13,584 14,332 14,324 14,348 14,650 14,839 15,097 15,330 14,904 12 Used car 8,884 9,119 9,875 10,104 9,808 9,969 10,230 10,349 10,434 10,449 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 DomesticN onfinancial Statistics • June 1994 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1992 1993 11998899 11999900 11999911 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 723.0 631.0 475.5 582.4 606.5 586.2 611.1 529.5 404.5 677.6 577.0 767.0 By sector and instrument 2 U.S. government 146.4 246.9 278.2 304.0 256.1 352.9 299.1 240.1 229.6 348.2 177.2 269.6 3 Treasury securities 144.7 238.7 292.0 303.8 248.3 352.5 290.1 237.4 226.4 344.1 160.9 261.9 4 Budget agency issues and mortgages 1.6 8.2 -13.8 .2 7.8 .4 9.0 2.7 3.2 4.1 16.2 7.7 5 Private 576.6 384.1 197.3 278.4 350.4 233.3 312.0 289.4 175.0 329.3 399.8 497.4 By instrument 6 Tax-exempt obligations 65.3 57.3 69.6 65.7 59.4 76.6 75.8 42.4 62.4 67.2 48.3 59.9 7 Corporate bonds 73.8 47.1 78.8 67.5 71.3 77.8 61.7 54.0 82.0 72.0 68.0 63.0 8 Mortgages 269.1 188.7 165.1 120.8 172.2 69.6 134.8 94.0 101.3 134.4 201.5 251.5 9 Home mortgages 212.5 177.2 166.0 176.0 192.7 111.6 203.3 172.8 121.8 174.2 226.9 247.9 10 Multifamily residential 12.0 3.4 -2.5 -11.1 -4.4 -16.9 -11.2 -27.8 -4.7 -12.4 -4.0 3.6 11 Commercial 47.3 8.9 .9 -45.5 -16.5 -25.7 -57.8 -51.5 -18.2 -28.9 -19.8 1.0 12 Farm -2.7 -.8 .7 1.3 .3 .6 .6 .5 2.5 1.4 -1.6 -1.0 13 Consumer credit 49.5 13.4 -13.1 9.3 49.0 -14.7 13.5 48.3 19.2 22.9 60.7 93.3 14 Bank loans n.e.c 36.4 4.2 -46.8 -5.6 4.7 27.7 -24.0 21.3 -39.7 31.7 7.3 19.7 15 Commercial paper 21.4 9.7 -18.4 8.6 10.0 -2.6 9.3 25.4 -27.1 33.7 23.8 9.7 16 Other loans 61.0 63.6 -37.8 12.1 -16.3 -1.0 40.8 4.1 -23.1 -32.5 -9.8 .4 By borrowing sector 17 Household 276.7 207.7 168.4 215.0 251.2 176.5 217.9 266.5 130.8 213.7 321.7 338.5 18 Nonfinancial business 236.3 121.9 -33.4 4.0 34.5 -10.1 20.6 -12.2 -27.6 46.6 26.0 93.2 19 Farm .5 1.8 2.4 1.2 2.0 3.5 -.2 -1.9 -.3 3.8 2.0 2.6 20 Nonfarm noncorporate 49.4 19.4 -24.5 -39.4 -19.3 -47.4 -37.3 -51.0 -32.7 -31.4 -23.1 9.9 21 Corporate 186.5 100.7 -11.3 42.1 51.9 33.8 58.2 40.7 5.4 74.3 47.1 80.6 22 State and local government 63.5 54.5 62.3 59.4 64.7 66.9 73.5 35.1 71.7 69.1 52.1 65.7 23 Foreign net borrowing in United States 10.2 23.9 13.9 24.2 46.5 57.7 37.8 -.6 50.3 40.1 81.8 13.8 24 Bonds 4.9 21.4 14.1 17.3 60.5 21.9 20.3 22.2 75.6 42.4 83.7 40.3 25 Bank loans n.e.c -.1 -2.9 3.1 2.3 .5 14.1 3.9 -10.3 1.6 6.5 1.0 -7.0 26 Commercial paper 13.1 12.3 6.4 5.2 -9.0 27.8 13.1 -12.1 -21.7 -.6 -1.6 -12.0 27 U.S. government and other loans -7.6 -7.0 -9.8 -.6 -5.6 -6.1 .5 -.4 -5.3 -8.2 -1.3 -7.5 28 Total domestic plus foreign 733.1 654.9 489.4 606.6 653.0 643.9 649.0 528.8 454.8 717.6 658.8 780.8 Financial sectors 29 Total net borrowing by financial sectors 213.7 193.5 150.4 216.4 239.1 211.6 304.1 174.8 146.1 131.6 386.1 292.8 By instrument 30 U.S. government-related 149.5 167.4 145.7 155.8 157.2 195.2 169.3 131.8 165.8 62.7 273.7 126.4 31 Government-sponsored enterprises securities 25.2 17.1 9.2 40.3 80.6 48.3 67.7 33.6 32.2 68.8 167.8 53.4 32 Mortgage pool securities 124.3 150.3 136.6 115.6 76.6 146.9 101.6 98.4 133.5 -6.1 105.9 73.0 33 Loans from U.S. government .0 -.1 .0 .0 .0 .0 .0 -.1 .0 .0 .0 .0 34 Private 64.2 26.1 4.6 60.6 82.0 16.3 134.8 42.9 -19.6 68.9 112.4 166.3 35 Corporate bonds 37.3 40.8 56.8 65.3 69.0 64.4 81.2 79.4 55.3 55.8 97.7 67.1 36 Mortgages .5 .4 .8 .0 3.9 .1 .4 .0 .9 2.7 6.2 5.7 37 Bank loans n.e.c 6.0 1.1 17.1 -4.8 -7.9 -39.1 17.5 -19.8 -21.2 -5.9 -14.0 9.4 38 Open market paper 31.3 8.6 -32.0 -.7 -6.2 -14.8 17.5 -6.5 -73.1 -17.3 -9.7 75.5 39 Loans from Federal Home Loan Banks -11.0 -24.7 -38.0 .8 23.3 5.8 18.1 -10.1 18.6 33.5 32.3 8.6 By borrowing sector 40 Government sponsored enterprises 25.2 17.0 9.1 40.2 80.6 48.3 67.7 33.5 32.2 68.8 167.8 53.4 41 Federally related mortgage pools 124.3 150.3 136.6 115.6 76.6 146.9 101.6 98.4 133.5 -6.1 105.9 73.0 42 Private 64.2 26.1 4.6 60.6 82.0 16.3 134.8 42.9 -19.6 68.9 112.4 166.3 43 Commercial banks -1.4 -.7 -11.7 8.8 5.7 5.5 12.1 14.5 5.4 10.1 6.2 .9 44 Bank holding companies 6.2 -27.7 -2.5 2.3 7.1 -9.2 6.6 .8 21.1 1.3 -2.1 7.9 45 Funding corporations 13.8 12.5 -13.6 1.6 -10.6 29.2 -7.7 -31.1 -51.9 8.2 -13.2 14.3 46 Savings institutions -15.1 -30.2 -44.5 -6.7 11.2 -5.4 11.2 -14.4 7.9 17.7 18.4 .7 47 Credit unions .0 .0 .0 .0 .2 .0 .0 .1 .0 .3 .3 .1 48 Life insurance companies .0 .0 .0 .0 .2 .0 .2 -.2 .1 .6 -.1 .4 49 Finance companies 27.4 24.0 18.6 -3.6 -5.0 -20.1 21.2 19.9 -33.1 -38.6 16.0 35.8 50 Mortgage companies 3.0 -4.0 5.7 .1 6.0 -35.3 14.4 -6.4 -10.4 15.9 2.4 16.0 51 Real estate investment trusts (REITs) 1.3 1.0 1.6 .1 3.3 1.3 2.3 -5.1 -1.4 2.5 6.1 6.1 52 Issuers of asset-backed securities (ABSs) 28.9 51.1 51.0 58.0 64.0 50.3 74.3 64.8 42.6 50.8 78.4 84.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 11999933 Q2 Q3 Q4 Q1 Q2 Q3 Q4 All sectors 53 Total net borrowing, all sectors 946.8 848.4 639.8 822.9 892.1 855.5 953.1 703.6 600.9 849.2 1,044.9 1,073.5 54 U.S. government securities 295.8 414.4 424.0 459.8 413.3 548.1 468.5 372.0 395.3 410.9 450.9 396.0 55 Tax-exempt securities 65.3 57.3 69.6 65.7 59.4 76.6 75.8 42.4 62.4 67.2 48.3 59.9 56 Corporate and foreign bonds 116.0 109.2 149.6 150.1 200.7 164.1 163.3 155.6 212.9 170.2 249.4 170.5 57 Mortgages 269.6 189.1 165.8 120.8 176.0 69.7 135.3 93.9 102.2 137.1 207.7 257.1 58 Consumer credit 49.5 13.4 -13.1 9.3 49.0 -14.7 13.5 48.3 19.2 22.9 60.7 93.3 59 Bank loans n.e.c 42.3 2.4 -26.6 -8.1 -2.7 2.8 -2.5 -8.8 -59.3 32.3 -5.8 22.1 60 Open market paper 65.9 30.7 -44.0 13.1 -5.1 10.3 39.9 6.8 -121.9 15.7 12.5 73.2 61 Other loans 42.4 31.8 -85.6 12.2 1.4 -1.3 59.3 -6.6 -9.9 -7.2 21.2 1.5 Funds raised through mutual funds and corporate equities 62 Total net share issues -59.6 22.2 210.6 284.0 432.4 264.1 297.7 300.3 300.7 470.7 502.1 456.0 63 Mutual funds 38.5 67.9 150.5 206.7 310.7 199.5 235.2 217.7 240.9 357.5 337.6 306.9 64 Corporate equities -98.1 -45.7 60.1 77.3 121.6 64.5 62.5 82.6 59.7 113.2 164.5 149.1 65 Nonfinancial corporations -124.2 -63.0 18.3 27.0 23.0 36.0 12.0 14.0 9.0 25.0 30.0 28.0 66 Financial corporations 8.8 9.9 11.2 19.6 33.1 17.4 15.7 21.1 18.8 34.2 37.1 42.5 67 Foreign shares purchased in United States 17.2 7.4 30.7 30.6 65.5 11.2 34.8 47.5 31.9 54.0 97.5 78.7 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 • June 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 998.8 946.8 848.4 639.8 822.9 855.5 953.1 703.6 600.9 849.2 1,044.9 1,073.5 2 Private domestic nonfinancial sectors 196.1 122.6 162.8 -16.1 65.3 145.6 -105.4 87.0 -93.1 -95.8 -126.2 -14.2 3 Households 170.3 78.6 140.1 -49.7 37.0 99.8 -135.7 66.6 -88.6 -91.9 -139.6 -18.5 4 Nonfarm noncorporate business 3.1 -.7 -1.7 -4.2 -2.4 -2.7 -2.0 -1.0 -3.7 -3.0 -2.2 -1.0 5 Nonfinancial corporate business 5.7 13.6 -5.3 4.3 36.3 36.8 46.5 36.9 -12.6 6.7 40.1 10.0 6 State and local governments 17.1 31.1 29.6 33.5 -5.7 11.7 -14.1 -15.5 11.8 -7.5 -24.6 -4.7 7 U.S. government -10.6 -3.1 33.7 10.5 -12.0 -23.0 -26.7 -13.3 -24.7 -27.8 -15.2 -11.3 8 Foreign 108.6 84.4 82.1 25.6 100.8 140.8 78.1 87.8 73.2 92.6 140.8 220.8 9 Financial sectors 704.8 742.9 569.9 619.8 668.8 592.1 1,006.9 542.1 645.6 880.1 1,045.5 878.2 10 Government sponsored enterprises 33.2 -4.1 16.4 14.2 69.0 38.6 73.0 71.7 14.6 134.1 157.7 59.7 11 Federally related mortgage pools 74.9 124.3 150.3 136.6 115.6 146.9 101.6 98.4 133.5 -6.1 105.9 73.0 12 Monetary authority 10.5 -7.3 8.1 31.1 27.9 19.0 15.7 48.3 44.5 32.6 28.2 39.5 13 Commercial banking 156.5 177.2 125.1 84.3 94.8 72.7 148.0 73.3 86.4 153.4 131.9 201.1 14 U.S. commercial banks 126.4 146.1 94.9 39.2 69.8 13.3 123.5 66.0 100.4 142.0 147.0 219.2 15 Foreign banking offices 29.4 26.7 28.4 48.5 16.5 56.7 5.2 4.8 -12.5 -.7 -17.2 -14.5 16 Bank holding companies -.1 2.8 -2.8 -1.5 5.6 -.4 16.4 -.6 -4.3 9.5 -.4 -5.8 17 Banks in U.S. affiliated areas .8 1.6 4.5 -1.9 2.9 3.2 3.0 3.0 2.9 2.6 2.5 2.3 18 Private nonbank finance 429.7 452.9 270.0 353.7 361.6 314.9 668.6 250.4 366.5 566.0 621.8 504.9 19 Thrift institutions 114.8 -86.6 -153.3 -123.0 -59.5 -75.7 -42.6 -15.0 -33.3 -5.2 12.2 -.1 20 Insurance 199.0 257.4 181.6 234.3 177.9 190.4 261.4 161.6 257.0 172.9 261.6 115.9 21 Life insurance companies 104.0 101.8 94.4 83.2 82.4 66.9 85.1 103.7 122.1 108.0 117.1 125.3 22 Other insurance companies 29.2 29.7 26.5 32.3 12.7 16.4 -2.8 8.3 8.9 10.6 8.6 9.7 23 Private pension funds 29.2 81.1 17.2 85.3 37.3 74.1 99.9 8.4 118.0 11.1 91.9 -62.1 24 State and local government retirement funds .... 36.6 44.7 43.5 33.5 45.5 33.0 79.2 41.2 8.0 43.2 44.0 42.9 25 Finance n.e.c 115.9 282.2 241.7 242.3 243.2 200.2 449.7 103.8 142.8 398.3 347.9 389.0 26 Finance companies 38.1 32.0 28.4 -12.1 1.7 -16.0 4.0 24.0 -34.0 -22.8 8.1 27.2 27 Mortgage companies -7.4 6.1 -8.0 11.4 .1 -38.5 28.9 -12.8 -20.8 31.7 -1.9 23.0 28 Mutual funds 11.9 23.8 41.4 90.3 123.7 123.7 156.9 119.2 130.2 193.4 168.4 160.7 29 Closed-end funds 19.8 6.3 .0 15.2 12.3 9.4 8.7 13.1 8.9 13.0 11.0 12.7 30 Money market funds 10.7 67.1 80.9 30.1 1.3 3.8 8.5 -26.1 -65.0 51.5 11.5 48.8 31 Real estate investment trusts (REITs) .9 .5 -.7 -1.0 .4 2.6 -.3 -.1 2.9 .8 1.0 1.7 32 Brokers and dealers -8.2 96.3 34.9 49.0 40.2 73.0 180.3 -90.2 79.5 66.7 69.0 4.9 33 Asset-backed securities issuers (ABSs) 35.9 27.7 49.9 49.0 55.5 50.5 72.0 59.2 42.1 49.7 81.3 87.9 34 Bank personal trusts 14.3 22.4 14.8 10.4 8.0 -8.4 -9.3 17.3 -.9 14.4 -.5 22.2 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Net flows through credit markets 998.8 946.8 848.4 639.8 822.9 855.5 953.1 703.6 600.9 849.2 1,044.9 1,073.5 Other financial sources 36 Official foreign exchange 4.0 24.8 2.0 -5.9 -1.6 -6.5 -8.5 5.1 3.4 -4.0 1.7 -3.4 37 Treasury currency and special drawing rights certificates .5 4.1 2.5 .0 -1.8 .3 .2 -7.7 .3 .4 .4 .7 38 Life insurance reserves 25.3 28.8 25.7 25.7 27.3 15.6 41.5 26.3 53.6 39.5 59.5 69.6 39 Pension fund reserves 140.1 309.7 158.1 358.8 227.8 208.0 291.7 267.0 325.2 223.0 296.1 123.3 40 Interbank claims 2.9 -16.5 34.2 -3.7 48.1 36.9 79.8 50.0 19.8 49.5 -19.8 46.2 41 Deposits at financial institutions 278.6 284.8 98.1 48.2 9.3 6.3 174.1 -142.7 -.4 219.6 -5.3 134.0 42 Checkable deposits and currency 43.2 6.1 44.2 75.8 122.8 110.8 200.4 93.5 25.0 232.2 96.3 126.1 43 Small time and savings deposits 121.6 100.4 59.0 16.7 -60.8 -81.8 -83.6 -37.8 -155.9 -57.3 -72.6 -36.2 44 Large time deposits 53.1 13.9 -65.7 -60.8 -80.0 -109.9 -52.9 -84.2 1.9 -17.5 -57.3 9.6 45 Money market fund shares 21.9 90.1 70.3 41.2 3.9 26.7 -22.4 -32.9 -37.7 66.5 -15.8 49.3 46 Security repurchase agreements 23.7 77.8 -24.2 -16.5 33.6 103.7 89.6 -67.1 180.3 17.6 78.7 -2.9 47 Foreign deposits 15.2 -3.6 14.6 -8.2 -10.2 -43.2 43.0 -14.2 -13.9 -21.9 -34.6 -12.0 48 Mutual fund shares 6.1 38.5 67.9 150.5 206.7 199.5 235.2 217.7 240.9 357.5 337.6 306.9 49 Corporate equities -104.7 -98.1 -45.7 60.1 77.3 64.5 62.5 82.6 59.7 113.2 164.5 149.1 50 Security credit 3.0 15.6 3.5 51.4 4.2 -4.9 82.8 5.5 39.7 38.3 77.2 80.7 51 Trade debt 89.6 59.4 32.1 -2.2 54.9 54.7 54.0 33.0 26.9 37.4 47.8 54.6 52 Taxes payable 5.3 2.0 -4.5 -8.5 7.9 6.2 6.7 10.3 7.6 2.2 4.2 5.2 53 Noncorporate proprietors' equity -24.0 -31.1 -35.5 -12.5 -5.7 15.9 -27.5 10.5 -12.5 -21.0 -6.7 -59.4 54 Investment in bank personal trusts 7.2 23.1 21.5 29.8 -7.5 20.2 -55.4 -35.2 -10.1 35.8 -23.0 40.8 55 Miscellaneous 199.2 292.1 98.2 169.9 195.7 273.5 202.6 211.8 213.4 385.1 93.5 341.9 56 Total financial sources 1,632.0 1,883.8 1,306.5 1,501.3 1,665.5 1,745.8 2,092.8 1,437.9 1,568.5 2,325.7 2,072.7 2,363.5 Floats not included in assets (-) 57 U.S. government checkable deposits 1.6 8.4 3.3 -13.1 .7 -9.5 4.4 -3.6 .1 6.2 -6.4 -7.7 58 Other checkable deposits .8 -3.2 2.5 2.0 1.6 2.0 -11.7 2.3 -1.8 -1.4 -5.6 -6.3 59 Trade credit -6.2 -1.9 2.5 8.1 18.5 9.5 40.2 1.2 -20.1 5.1 10.4 -.1 Liabilities not identified as assets (-) 60 Treasury currency -.1 -.2 .2 -.6 -.2 -.2 -.2 -.1 -.2 -.2 -.2 -.2 61 Interbank claims -3.0 -4.4 1.6 26.2 -4.9 -18.2 -7.8 -1.7 11.4 -5.7 -16.5 27.6 62 Security repurchase agreements -29.6 32.4 -31.5 5.2 31.1 84.1 43.5 23.4 155.2 16.5 67.7 46.8 63 Taxes payable 6.3 2.3 .5 .4 6.9 7.1 24.1 4.0 -13.2 14.1 8.3 -6.0 64 Miscellaneous 47.3 -77.8 -23.6 -32.1 -21.1 -65.9 1.2 49.3 -7.8 -36.1 -34.9 9.0 65 Total identified to sectors as assets 1,614.8 1,928.2 1,351.0 1,505.2 1,632.8 1,736.9 1,999.2 1,363.1 1,444.9 2,327.3 2,049.9 2,300.4 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables F.6 and F.7. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1992 1993 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 Q2 Q3 Q4 Q1 Q2 Q3 04 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 10,054.3 10,692.0 11,160.6 11,747.2 11,427.2 11,580.6 11,747.2 11,824.7 11,983.4 12,128.9 12,354.4 By lending sector and instrument 2 U.S. government 2,251.2 2,498.1 2,776.4 3,080.3 2,923.3 2,998.9 3,080.3 3,140.2 3,201.2 3,247.3 33,,333366..55 3 Treasury securities 2,227.0 2,465.8 2,757.8 3,061.6 2,907.4 2,980.7 3,061.6 3,120.6 3,180.6 3,222.6 3,309.9 4 Budget agency issues and mortgages 24.2 32.4 18.6 18.8 15.9 18.1 18.8 19.6 20.6 24.7 26.6 5 Private 7,803.1 8,193.9 8,384.3 8,666.9 8,503.9 8,581.7 8,666.9 8,684.5 8,782.1 8,881.7 9,018.0 By instrument 6 Tax-exempt obligations 1,004.7 1,062.1 1,131.6 1,197.3 1,163.7 1,186.4 1,197.3 1,210.0 1,225.7 1,241.8 1,256.8 7 Corporate bonds 961.1 1,008.2 1,086.9 1,154.4 1,125.5 1,140.9 1,154.4 1,174.9 1,192.9 1,209.9 1,225.7 8 Mortgages 3,512.8 3,715.4 3,880.4 4,001.6 3,941.3 3,979.4 4,001.6 4,017.9 4,057.6 4,112.2 4,173.7 9 Home mortgages 2,380.5 2,580.6 2,746.6 2,922.7 2,825.6 2,880.8 2,922.7 2,944.1 2,993.8 3,054.7 3,115.4 10 Multifamily residential 304.3 305.5 303.0 291.9 301.7 298.9 291.9 290.7 287.6 286.6 287.5 11 Commercial 747.6 750.8 751.7 706.5 733.8 719.4 706.5 702.0 694.8 689.8 690.0 17 Farm 80.5 78.4 79.1 80.4 80.2 80.3 80.4 81.1 81.4 81.0 80.8 13 Consumer credit 799.5 813.0 799.9 809.2 776.9 784.5 809.2 793.7 802.3 821.7 858.3 14 Bank loans n.e.c 750.8 747.8 701.0 695.6 694.0 686.2 695.6 683.0 691.8 691.6 700.3 15 Commercial paper 107.1 116.9 98.5 107.1 112.0 108.2 107.1 113.9 124.0 123.2 117.8 16 Other loans 667.0 730.6 685.9 701.6 690.5 696.1 701.6 691.1 687.7 681.2 685.4 By borrowing sector 17 Household 3,371.4 3,594.8 3,762.7 3,978.0 3,837.3 3,900.1 3,978.0 3,980.6 4,044.6 4,132.7 44,,222299..22 18 Nonfinancial business 3,615.7 3,728.5 3,688.7 3,696.7 3,705.6 3,698.6 3,696.7 3,696.7 3,714.2 3,708.5 3,731.9 19 Farm 134.4 134.9 134.8 136.0 136.8 137.6 136.0 133.7 137.1 138.5 138.0 20 Nonfarm noncorporate 1,199.6 1,219.0 1,192.3 1,154.5 1,177.3 1,165.1 1,154.5 1,145.3 1,139.3 1,130.8 1,135.2 71 Corporate 2,281.7 2,374.6 2,361.6 2,406.1 2,391.5 2,395.8 2,406.1 2,417.8 2,437.8 2,439.2 2,458.7 22 State and local government 816.1 870.5 932.8 992.2 961.0 983.1 992.2 1,007.2 1,023.4 1,040.5 1,056.9 23 Foreign credit market debt held in United States 261.2 285.1 298.9 313.8 304.7 312.9 313.8 324.8 336.5 355.6 360.3 74 Bonds 94.1 115.4 129.5 146.9 136.2 141.3 146.9 165.8 176.4 197.3 207.4 75 Bank loans n.e.c 21.4 18.5 21.6 23.9 25.5 26.5 23.9 24.3 25.9 26.2 24.4 7.6 Commercial paper 63.0 75.3 81.8 77.7 77.4 80.7 77.7 72.3 72.1 71.7 68.7 27 U.S. government and other loans 82.7 75.8 66.0 65.4 65.6 64.4 65.4 62.5 62.0 60.4 59.8 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 10,315.5 10,977.1 11,459.5 12,061.0 11,732.0 11,893.5 12,061.0 12,149.5 12,319.8 12,484.5 12,714.8 Financial sectors 29 Total credit market debt owed by financial sectors 2,362.7 2,559.4 2,709.7 2,941.7 2,815.2 2,889.3 2,941.7 2,974.3 3,010.3 3,104.7 3,186.2 By instrument 30 U.S. government-related 1,247.8 1,418.4 1,564.2 1,720.0 1,641.6 1,683.5 1,720.0 1,755.8 1,774.5 1,842.2 1,877.1 31 Government-sponsored enterprises securities 373.3 393.7 402.9 443.1 417.8 434.7 443.1 451.2 468.4 510.3 523.7 32 Mortgage pool securities 869.5 1,019.9 1,156.5 1,272.0 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 1,327.1 1,348.6 33 Loans from U.S. government 5.0 4.9 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 34 Private 1,114.8 1,140.9 1,145.6 1,221.7 1,173.6 1,205.8 1,221.7 1,218.5 1,235.8 1,262.5 1,309.1 35 Corporate bonds 509.1 549.9 606.6 678.2 638.0 658.3 678.2 692.0 706.0 730.4 747.2 36 Mortgages 4.0 4.3 5.1 5.1 5.0 5.1 5.1 5.4 6.0 7.6 9.0 37 Bank loans n.e.c 50.9 52.0 69.1 64.2 63.1 67.5 64.2 56.9 55.8 52.4 56.3 38 Open market paper 409.1 417.7 385.7 394.3 390.5 394.6 394.3 379.2 375.9 373.2 393.5 39 Loans from Federal Home Loan Banks 141.8 117.1 79.1 79.9 76.9 80.2 79.9 85.0 92.1 98.9 103.1 By borrowing sector 40 Government-sponsored enterprises 378.3 398.5 407.7 447.9 422.6 439.5 447.9 456.0 473.2 515.1 528.5 41 Federally related mortgage pools 869.5 1,019.9 1,156.5 1,272.0 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 1,327.1 1,348.6 42 Private financial sectors 1,114.8 1,140.9 1,145.6 1,221.7 1,173.6 1,205.8 1,221.7 1,218.5 1,235.8 1,262.5 1,309.1 43 Commercial banks 77.4 76.7 65.0 73.8 66.2 69.0 73.8 73.1 76.6 77.9 79.5 44 Bank holding companies 142.5 114.8 112.3 114.6 112.7 114.4 114.6 119.9 120.2 119.7 121.6 45 Funding corporations 125.4 137.9 124.3 135.2 144.9 143.0 135.2 127.6 129.7 126.4 130.0 46 Savings institutions 169.2 139.1 94.6 87.8 87.6 89.2 87.8 90.3 93.4 96.8 99.0 47 Credit unions .0 .0 .0 .0 .0 .0 .0 .0 .1 .2 .2 48 Life insurance companies .0 .0 .0 .0 .0 .0 .0 .0 .2 .1 .2 49 Finance companies 350.4 374.4 393.0 389.4 377.4 382.7 389.4 379.1 369.8 373.9 384.4 50 Mortgage companies 11.3 7.3 13.0 13.0 11.0 14.6 13.0 10.4 14.4 15.0 19.0 51 Real estate investment trusts (REITs). 11.4 12.4 14.0 14.1 14.8 15.3 14.1 13.7 14.4 15.9 17.4 52 Issuers of asset-backed securities (ABSs) 227.3 278.3 329.4 393.7 358.9 377.5 393.7 404.3 417.1 436.7 457.7 All sectors 53 Total credit market debt, domestic and foreign.. 12,678.2 13,536.5 14,169.3 15,002.7 14,547.1 14,782.8 15,002.7 15,123.8 15,330.1 15,589.3 15,900.9 54 U.S. government securities 3,494.1 3,911.7 4,335.7 4,795.5 4,560.1 4,677.6 4,795.5 4,891.2 4,970.9 5,084.7 5,208.8 55 Tax-exempt securities 1,004.7 1,062.1 1,131.6 1,197.3 1,163.7 1,186.4 1,197.3 1,210.0 1,225.7 1,241.8 1,256.8 56 Corporate and foreign bonds 1,564.3 1,673.5 1,823.1 1,979.5 1,899.8 1,940.6 1,979.5 2,032.7 2,075.3 2,137.6 2,180.2 57 Mortgages 3,516.8 3,719.7 3,885.5 4,006.7 3,946.3 3,984.5 4,006.7 4,023.3 4,063.7 4,119.7 4,182.7 58 Consumer credit 799.5 813.0 799.9 809.2 776.9 784.5 809.2 793.7 802.3 821.7 858.3 59 Bank loans n.e.c 823.0 818.3 791.7 783.7 782.7 780.2 783.7 764.3 773.5 770.2 781.1 60 Open market paper 579.2 609.9 565.9 579.0 579.9 583.6 579.0 565.4 572.0 568.2 580.0 61 Other loans 896.5 928.4 835.8 851.7 837.7 845.5 851.7 843.4 846.7 845.3 853.1 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical Digitized for FrReleAasSe,E tRab les L.2 through L.4. For ordering address, see inside front cover. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • June 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 Q2 Q3 Q4 Ql Q2 Q3 04 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 12,678.2 13,536.5 14,169.3 15,002.7 14,547.1 14,782.8 15,002.7 15,123.8 15,330.1 15,589.3 15,900.9 2 Private domestic nonfinancial sectors 2,096.4 2,246.8 2,205.8 2,288.3 2,231.4 2,209.1 2,288.3 2,257.0 2,215.3 2,187.7 2,226.4 3 Households 1,326.8 1,454.6 1,380.0 1,434.2 1,392.5 1,369.4 1,434.2 1,412.7 1,365.9 1,341.7 1,370.0 4 Nonfarm noncorporate business 56.5 54.9 50.7 48.3 48.7 48.1 48.3 47.0 46.3 45.6 45.8 5 Nonfinancial corporate business 181.2 175.8 180.1 216.4 192.6 199.5 216.4 205.9 211.7 217.1 227.5 6 State and local governments 531.9 561.5 595.1 589.4 597.5 592.1 589.4 591.5 591.4 583.4 583.1 7 U.S. government 205.4 239.1 247.0 235.0 246.3 239.2 235.0 229.2 223.2 218.9 215.3 8 Foreign 778.7 897.5 936.2 1,031.6 995.9 1,015.5 1,031.6 1,041.3 1,064.5 1,099.7 1,154.9 9 Financial sectors 9,597.7 10,153.1 10,780.3 11,447.8 11,073.5 11,319.0 11,447.8 11,596.2 11,827.1 12,083.0 12,304.3 10 Government-sponsored enterprises 355.4 371.8 397.7 466.7 429.0 446.3 466.7 464.1 496.7 535.1 552.4 11 Federally related mortgage pools 869.5 1,019.9 1,156.5 1,272.0 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3 1,327.1 1,348.6 12 Monetary authority 233.3 241.4 272.5 300.4 282.6 285.2 300.4 303.6 318.2 324.2 336.7 13 Commercial banking 2,647.4 2,772.5 2,856.8 2,951.6 2,887.6 2,928.2 2,951.6 2,960.9 3,003.2 3,040.2 3,094.8 14 U.S. commercial banks 2,371.9 2,466.7 2,506.0 2,575.7 2,525.2 2,560.0 2,575.7 2,594.6 2,633.8 2,674.7 2,727.9 15 Foreign banking offices 242.3 270.8 319.2 335.8 328.2 328.9 335.8 326.7 327.1 322.3 324.5 16 Bank holding companies 16.2 13.4 11.9 17.5 13.1 17.5 17.5 16.4 18.4 18.6 17.3 17 Banks in U.S. affiliated areas 17.1 21.6 19.7 22.5 21.0 21.8 22.5 23.3 23.9 24.5 25.1 18 Private nonbank finance 5,491.9 5,747.4 6,096.7 6,457.1 6,255.4 6,415.3 6,457.1 6,567.7 6,707.8 6,856.4 6,971.9 19 Thrift institutions 1,475.4 1,324.6 1,197.3 1,140.9 1,153.8 1,144.9 1,140.9 1,130.0 1,129.8 1,134.4 1,134.4 20 Insurance 2,320.7 2,473.7 2,708.0 2,874.9 2,789.3 2,854.5 2,874.9 2,943.9 2,992.3 3,057.5 3,076.7 21 Life insurance companies 1,022.0 1,116.5 1,199.6 1,282.0 1,243.6 1,264.7 1,282.0 1,317.3 1,349.5 1,378.6 1,400.1 22 Other insurance companies 317.5 344.0 376.3 389.0 387.6 386.9 389.0 391.2 393.8 396.0 398.4 23 Private pension funds 590.2 607.4 692.7 719.0 703.3 728.2 719.0 748.5 751.3 774.3 758.7 24 State and local government retirement funds... 390.9 405.9 439.4 484.9 454.8 474.6 484.9 486.9 497.7 508.7 519.5 25 Finance n.e.c 1,695.9 1,949.1 2,191.5 2,441.2 2,312.3 2,415.9 2,441.2 2,493.8 2,585.7 2,664.4 2,760.8 26 Finance companies 468.6 497.0 484.9 486.6 480.5 477.8 486.6 473.7 473.5 472.0 481.3 27 Mortgage companies 22.6 14.6 25.9 26.1 22.1 29.3 26.1 20.9 28.8 28.3 34.1 28 Mutual funds 307.2 360.2 450.5 574.2 510.2 550.2 574.2 611.4 659.9 703.6 737.4 29 Closed-end funds 37.1 37.1 52.4 64.6 59.2 61.3 64.6 66.9 70.1 72.8 76.0 30 Money market funds 291.8 372.7 402.7 404.1 412.0 408.2 404.1 404.5 403.9 400.6 415.8 31 Real estate investment trusts (REITs) 8.4 7.7 6.8 7.4 7.5 7.4 7.4 8.1 8.3 8.6 9.0 32 Brokers and dealers 142.9 177.9 226.9 267.1 244.6 289.6 267.1 287.0 303.6 320.9 322.1 33 Asset-backed securities issuers (ABSs) 219.3 269.1 318.1 379.9 347.1 365.1 379.9 390.4 402.8 423.1 445.1 34 Bank personal trusts 198.0 212.9 223.3 231.2 229.2 226.9 231.2 231.0 234.6 234.5 240.0 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Total credit market debt 12,678.2 13,536.5 14,169.3 15,002.7 14,547.1 14,782.8 15,002.7 15,123.8 15,330.1 15,589.3 15,900.9 Other liabilities 36 Official foreign exchange 53.6 61.3 55.4 51.8 54.4 55.4 51.8 54.5 53.9 55.6 53.4 37 Treasury currency and special drawing rights certificates 23.8 26.3 26.3 24.5 26.4 26.5 24.5 24.6 24.7 24.8 25.0 38 Life insurance reserves 354.3 380.0 405.7 433.0 416.0 426.4 433.0 446.4 456.2 471.1 488.5 39 Pension fund reserves 3,356.1 3,400.3 4,056.5 4,357.8 4,115.0 4,250.0 4,357.8 4,492.2 4,555.3 4,701.7 4,775.9 40 Interbank claims 32.4 64.0 65.2 113.1 68.5 100.7 113.1 109.5 116.8 127.7 136.8 41 Deposits at financial institutions 4,736.7 4,836.8 4,885.2 4,892.1 4,870.6 4,909.3 4,892.1 4,887.8 4,930.0 4,926.1 4,979.8 42 Checkable deposits and currency 888.6 932.8 1,008.5 1,131.0 1,032.9 1,072.0 1,131.0 1,092.2 1,169.1 1,182.6 1,250.9 43 Small time and savings deposits 2,277.4 2,336.3 2,353.0 2,292.2 2,325.8 2,303.7 2,292.2 2,262.0 2,242.2 2,223.1 2,211.7 44 Large time deposits 603.4 537.7 476.9 397.2 427.5 418.4 397.2 398.3 389.9 379.7 381.3 45 Money market fund shares 428.1 498.4 539.6 543.6 556.9 552.9 543.6 556.6 549.8 547.9 559.1 46 Security repurchase agreements 396.5 372.3 355.8 389.4 393.5 417.6 389.4 443.5 448.4 470.9 457.9 47 Foreign deposits 142.8 159.4 151.3 138.8 133.9 144.6 138.8 135.3 130.5 121.9 118.9 48 Mutual fund shares 566.2 602.1 813.9 1,042.1 924.4 965.6 1,042.1 1,134.6 1,225.8 1,342.4 1,426.8 49 Security credit 133.9 137.4 188.9 217.3 193.3 214.5 217.3 225.1 234.7 254.5 276.3 50 Trade debt 904.2 936.4 926.7 978.1 945.5 965.1 978.1 975.8 984.5 1,002.8 1,020.9 51 Taxes payable 81.8 77.4 68.9 76.8 70.7 74.6 76.8 81.0 77.2 80.7 81.6 52 Investment in bank personal trusts 503.2 509.9 596.7 619.1 612.7 610.9 619.1 625.0 635.6 643.6 658.6 53 Miscellaneous 2,591.1 2,732.4 2,884.3 3,053.7 2,958.0 3,026.7 3,053.7 3,074.7 3,153.0 3,193.8 3,276.6 54 Total liabilities 26,015.5 27,300.7 29,143.0 30,862.1 29,802.8 30,408.2 30,862.1 31,255.0 31,777.7 32,413.9 33,101.1 Financial assets not included in liabilities ( + ) 55 Gold and special drawing rights 21.0 22.0 22.3 19.6 22.7 23.2 19.6 19.8 20.0 20.3 20.1 56 Corporate equities 3,812.9 3,543.7 4,869.4 5,540.6 4,837.0 4,995.4 5,540.6 5,721.3 5,741.9 6,006.6 6,120.7 57 Household equity in noncorporate business 2,508.1 2,440.6 2,344.6 2,274.5 2,340.3 2,320.3 2,274.5 2,259.2 2,260.3 2,252.2 2,221.2 Floats not included in assets (-) 58 U.S. government checkable deposits 6.1 15.0 3.8 6.8 1.4 4.0 6.8 3.4 3.5 2.2 5.7 59 Other checkable deposits 26.5 28.9 30.9 32.5 32.6 23.3 32.5 27.2 29.6 21.7 28.7 60 Trade credit -148.6 -146.0 -144.1 -128.5 -155.6 -149.6 -128.5 -138.1 -148.1 -149.3 -128.6 Liabilities not identified as assets (-) 61 Treasury currency -4.3 -4.1 -4.8 -4.9 -4.9 -4.9 -4.9 -5.0 -5.0 -5.1 -5.1 62 Interbank claims -31.0 -32.0 -4.2 -9.3 -4.0 -5.0 -9.3 -5.6 -5.7 -7.8 -4.8 63 Security repurchase agreements 13.7 -17.7 -12.5 18.6 19.6 33.1 18.6 71.8 79.5 101.6 90.2 64 Taxes payable 20.6 17.8 15.5 22.4 13.1 18.2 22.4 12.2 19.4 20.3 30.7 65 Miscellaneous -210.7 -213.4 -254.6 -254.9 -285.0 -273.2 -254.9 -300.7 -294.5 -329.7 -345.3 66 Total identified to sectors as assets 32,685.1 33,658.6 36,749.2 39,014.1 37,385.4 38,101.2 39,014.1 39,590.2 40,121.3 41,039.1 41,791.6 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables L.6 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 11999922 11999933 July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. 1 Industrial production1 104.1 106.5 110.9 110.9 111.1 111.3 111.9 112.8 114.0 114.4 115.0 115.6 Market groupings 7 Products, total 103.2 105.7 110.2 110.4 110.4 110.6 111.2 112.1 113.0 113.4 111144..22 111144..44 3 Final, total 105.3 108.0 112.7 112.8 112.7 113.1 113.8 114.6 115.4r 116.1 117.2 117.3 4 Consumer goods 102.8 105.7 108.7 108.9 108.6 108.5 109.2 109.7 110.1 110.6 111.8 111.5 5 Equipment 108.9 111.2 118.5 118.5 118.6 119.8 120.4 121.8 123. r 124.0 125.0 125.6 6 Intermediate 96.8 99.0 102.6 102.9 103.3 103.0 103.5 104.3 105.4 105.2 105.0 105.8 7 Materials 105.4 107.7 111.9 111.7 112.1 112.2 112.8 113.9 115.5 115.8 116.3 117.2 Industry groupings 8 Manufacturing 103.7 106.8 111.7 111.6 111.8 112.1 112.9 111144..00 111155..44 111155..55 111166..33 111177..00 9 Capacity utilization, manufacturing (percent) 77.8 78.6 80.6 80.3 80.3 80.4 80.8 8811..55 8822..33 8822..22 8822..55 8822..88 10 Construction contracts3 89.7 97.7 99.4 98.0 99.0 101.0 103.0 105.0 102.0 103.0 107.0 n.a. 11 Nonagricultural employment, total4 106.2 106.4 108.1 108.2 108.2 108.4 108.5 108.8 109.0 109.0 109.1 109.6 1? Goods-producing, total 96.6 94.9 93.1 93.0 92.8 92.8 93.0 93.2 93.3 93.3 93.3 93.6 13 Manufacturing, total 97.1 95.8 93.7 93.5 93.3 93.2 93.2 93.4 93.4 93.5 93.6 93.6 14 Manufacturing, production workers ... 96.0 94.5 93.7 93.5 93.2 93.2 93.3 93.6 93.7 94.0 94.2 94.3 15 Service-producing 109.4 110.5 112.8 113.1 113.1 113.4 113.5 113.7 114.0 113.9 114.2 114.7 16 Personal income, total 127.6 135.3 141.7 141.1 142.9 143.1 144.lr 145.0 US.9 145.4 147.3 n.a. 17 Wages and salary disbursements 124.5 131.5 136.2 137.2 138.2 138.0 138.8 139.2 139.91 141.3 141.6 n.a. 18 Manufacturing , 113.7 117.8 117.8 118.2 118.6 119.1 119.1 119.9 120.7 120.8 121.9 n.a. 19 Disposable personal income 128.6 136.8 143.1 142.3 144.1 144.4 145.4r 146.3r 147.3 146.4 148.5 n.a. 20 Retail sales6 121.1 126.9 135.2 135.0 136.0 136.0 138.7 139.6 141.1 139.3 141.6 142.1 Prices7 71 Consumer (1982-84=100) 136.2 140.3 144.5 144.4 144.8 145.1 145.7 145.8 145.8 146.2 114466..77 114477..22 22 Producer finished goods (1982=100) 121.7 123.2 124.7 125.3 124.2 123.8 124.6 124.5r 124.1 124.4 124.8 125.0 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 Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. HOUSEHOLD SURVEY DATA1 1 Civilian labor force1 125,303 126,982 128,040 128,334 128,108 128,580 128,662 128,898 130,667 130,776 130,580 7 Nonagricultural industries3 114,644 114,391 116,232 116,687 116,475 116,920 117,218 117,565 118,639 118,867 118,611 3 Agriculture 3,233 3,207 3,074 3,005 3,093 3,021 3,114 3,096 3,331 3,391 3,426 Unemployment 4 Number 8,426 9,384 8,734 8,642 8,540 8,639 8,330 8,237 8,696 88,,551188 88,,554433 5 Rate (percent of civilian labor force) 6.7 7.4 6.8 6.7 6.7 6.7 6.5 6.4 6.7 6.5 6.5 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 108,256 108,519 110,171 110,305 110,502 110,664 110,880 111,116 111,079 111,277 111,733 7 Manufacturing 18,455 18,192 17,804 17,718 17,698 17,709 17,735 17,738 17,769 17,774 17,786 8 Mining 689 631 599 592 596 596 595 605 602 601 598 9 Contract construction 4,650 4,471 4,571 4,593 4,592 4,629 4,664 4,665 4,653 4,643 4,717 10 Transportation and public utilities 5,762 5,709 5,710 5,690 5,692 5,693 5,700 5,697 5,708 5,716 5,737 11 Trade 25,365 25,391 25,849 25,902 25,953 25,968 25,982 26,082 26,079 26,160 26,244 1? Finance 6,646 6,571 6,605 6,602 6,616 6,632 6,651 6,660 6,656 6,664 6,675 13 Service 28,336 29,053 30,193 30,381 30,433 30,534 30,649 30,709 30,683 30,792 31,015 14 Government 18,402 18,653 18,841 18,827 18,922 18,903 18,904 18,954 18,929 18,927 18,961 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 • June 1994 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1993 1994 1993 1994 1993 1994 Q2 Q3 Q4r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4r Ql Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent)2 1 Total industry 110.3 111.1 112.9 115.0 135.9 136.5 137.2 138.0 81.2 81.4 82.3 83.3 2 Manufacturing 111.2 111.8 114.1 116.3 138.4 139.2 140.0 140.9 80.3 80.3 81.5 82.5 3 Primary processing3.. 107.0 107.7 109.9 111.0 127.9 128.3 128.6 129.0 83.6 83.9 85.5 86.0 4 Advanced processing 113.2 113.8 116.1 118.8 143.4 144.4 145.4 146.6 78.9 78.8 79.9 81.1 5 Durable goods 113.2 114.2 118.1 121.2 144.5 145.4 146.3 147.6 78.4 78.5 80.7 82.1 6 Lumber and products 98.0 100.8 104.9 104.5 114.8 115.0 115.2 115.4 85.4 87.6 91.1 90.5 7 Primary metals 105.2 106.7 109.6 110.6 123.3 123.0 122.6 122.4 85.3 86.8 89.4 90.3 8 Iron and steel 109.7 112.3 115.6 116.1 127.4 126.9 126.3 126.0 86.1 88.6 91.5 92.1 9 Nonferrous 99.0 98.9 101.4 103.1 117.6 117.6 117.6 117.5 84.1 84.1 86.2 87.7 10 Nonelectrical machinery 141.7 147.2 152.7 158.8 173.1 175.7 178.2 181.7 81.8 83.8 85.7 87.4 11 Electrical machinery 125.9 129.7 132.6 136.2 153.8 155.7 157.7 160.3 81.9 83.2 84.1 85.0 12 Motor vehicles and parts 118.1 112.0 131.7 144.7 153.4 154.8 156.1 157.8 76.9 72.3 84.4 91.7 13 Aerospace and miscellaneous transportation equipment . 90.3 87.4 85.2 82.8 133.7 133.2 132.8 132.2 67.6 65.6 64.2 62.6 14 Nondurable goods 108.7 108.9 109.2 110.2 131.0 131.6 132.1 132.7 83.0 82.8 82.6 83.0 15 Textile mill products 108.4 108.0 107.7 108.4 118.8 119.4 119.9 120.5 91.3 90.5 89.8 90.0 16 Paper and products 113.2 111.7 114.2 115.7 124.3 124.8 125.3 125.8 91.1 89.6 91.2 92.0 17 Chemicals and products 117.7 118.6 118.6 120.5 145.1 145.9 146.8 147.7 81.2 81.2 80.8 81.6 18 Plastics materials 112.8 111.5 114.4 130.1 131.1 132.0 86.7 85.1 86.6 19 Petroleum products 104.0 104.0 107.7 105.4 115.8 115.7 115.6 115.4 89.8 89.9 93.2 91.3 20 Mining 97.5 96.8 97.3 98.4 111.4 111.1 110.8 110.6 87.5 87.1 87.8 88.9 21 Utilities 114.1 117.5 115.6 118.2 133.6 134.0 134.3 134.7 85.4 87.8 86.1 87.8 22 Electric 114.8 118.0 114.8 117.4 130.8 131.2 131.7 132.2 87.7 89.9 87.2 88.8 1973 1975 Previous cycle2 Latest cycle3 1993 1993 1994 High Low High Low High Low Mar. Oct. Nov. Dec.r Jan.r Feb/ Mar.p Capacity utilization rate (percent)2 1 Total industry 99.0 82.7 87.3 71.8 84.8 78.3 81.2 81.7 82.2 82.9 83.1 83.4 83.6 2 Manufacturing 99.0 82.7 87.3 70.0 85.1 76.6 80.1 80.8 81.5 82.3 82.2 82.5 82.8 3 Primary processing3 99.0 82.7 89.7 66.8 89.1 77.9 83.2 84.4 85.5 86.4 85.8 85.8 86.4 4 Advanced processing 99.0 82.7 86.3 71.4 83.3 76.1 78.9 79.3 79.8 80.6 80.7 81.2 81.3 5 Durable goods 99.0 82.7 86.9 65.0 83.9 73.8 78.2 79.6 80.6 81.9 81.9 82.2 82.3 6 Lumber and products 99.0 82.7 87.6 60.9 93.3 76.8 85.9 90.9 91.0 91.3 90.9 90.1 90.4 7 Primary metals 99.0 82.7 102.4 46.8 92.9 74.3 84.4 86.5 89.5 92.2 90.2 90.2 90.7 8 Iron and steel 99.0 82.7 110.4 38.3 95.7 72.3 84.7 89.6 90.6 94.5 91.7 92.2 92.5 9 Nonferrous 99.0 82.7 90.5 62.2 88.9 75.9 84.1 81.8 88.0 88.9 87.9 87.2 87.9 10 Nonelectrical machinery 99.0 82.7 92.1 64.9 83.7 73.0 79.9 84.7 85.3 87.0 87.1 87.0 88.0 11 Electrical machinery 99.0 82.7 89.4 71.1 84.9 76.8 81.5 83.6 83.7 84.8 84.6 84.9 85.5 17 Motor vehicles and parts 99.0 82.7 93.0 44.5 84.5 57.9 79.1 79.7 84.8 88.5 90.2 94.7 90.4 13 Aerospace and miscellaneous transportation equipment. 99.0 82.7 81.1 66.9 88.3 78.1 68.6 64.3 64.5 63.7 63.3 62.4 62.2 14 Nondurable goods 99.0 82.7 87.0 76.9 86.8 80.4 82.8 82.5 82.6 82.9 82.7 83.0 83.5 15 Textile mill products 99.0 82.7 91.7 73.8 92.1 78.7 90.5 90.0 90.0 89.4 89.8 89.7 90.4 16 Paper and products 99.0 82.7 94.2 82.0 94.9 86.0 89.8 90.1 91.4 92.1 90.9 92.0 93.2 17 Chemicals and products 99.0 82.7 85.1 70.1 85.9 78.5 81.0 80.4 81.0 81.2 81.4 81.6 81.8 18 Plastics materials 99.0 82.7 90.9 63.4 97.0 75.5 87.1 84.4 85.2 90.3 87.3 19 Petroleum products 99.0 82.7 89.5 68.2 88.5 84.2 89.8 93.6 93.3 92.7 90.5 91.4 92.0 20 Mining 99.0 82.7 96.6 80.6 87.0 86.8 86.8 88.4 87.5 87.5 87.5 89.2 90.1 21 Utilities 99.0 82.7 88.3 76.2 92.6 83.4 87.9 85.6 86.4 86.2 89.1 87.9 86.2 22 Electric 99.0 82.7 88.3 78.7 94.8 87.4 88.8 86.5 87.5 87.6 90.2 89.0 87.2 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 1993r 1994 pro- 1993 Group por- avg. tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb/ Mar." 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 2 Products 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 1 1 1 1 4 3 9 5 6 7 8 0 1 2 3 Fin C a o l D n p s u A O r u r o a m u t d A A C A h b t u e e o l a u p u T r e A c r m r p t t t p o r o g u s c l o u e s i o o t a p t t c o o i n i a n a k v n s d n s c r , s e g u s d t e , s , c m s p a c o t , t a n r r o e o n n o u A d r n t s d d c a s / u g f l k u C u u m a o s c m , l r o t l e n s i a d e r e i n s r d t d u r g e T o V od . s .. . . . 2 4 6 6 33 5 2 1 1 . . .. . . . . . . . . . 0 0 11 5 9 6 8 9 8 6 0 5 1 1 1 1 1 1 1 1 1 1 8 0 0 1 2 5 1 1 1 0 1 6 8 7 3 2 7 1 2 1 8 0 . . . . . . . . . . . 1 1 8 5 9 3 2 9 3 0 6 1 1 1 1 1 1 1 1 1 1 8 0 0 1 1 5 0 0 1 0 0 6 5 7 1 0 4 7 8 1 3 7 . . . . . . . . . . . 9 4 5 5 5 6 2 7 7 8 9 1 1 1 1 1 1 1 1 1 1 8 6 0 0 1 1 0 1 0 1 1 6 9 5 7 1 6 9 6 5 0 2 . . . . . . . . . . . 6 1 5 6 9 0 3 8 8 9 7 1 1 1 1 1 1 1 1 1 1 9 0 5 1 1 1 0 0 1 1 1 0 8 6 2 1 0 6 7 4 7 1 . . . . . . . . . . . 2 5 4 7 7 9 3 4 6 6 9 1 1 1 1 1 1 1 1 1 1 9 5 0 2 0 1 1 1 1 1 0 0 3 4 5 8 2 3 1 1 1 7 . . . . . . . . . . . 5 1 5 0 6 7 4 5 2 7 5 1 1 1 1 1 1 1 1 1 1 9 0 0 5 1 2 1 1 0 1 1 0 6 8 5 2 4 2 2 8 2 4 . . . . . . . . . . . 2 2 1 9 3 3 8 1 5 2 3 1 1 1 1 1 1 1 1 1 1 8 0 2 1 5 0 1 1 0 0 1 6 7 1 2 0 8 1 0 9 9 0 . . . . . . . . . . . 5 3 1 5 9 9 8 1 1 7 8 1 1 1 1 1 1 1 1 1 1 8 1 0 4 0 1 1 0 0 0 0 3 2 7 2 9 6 0 7 5 5 5 . . . . . . . . . . . 5 7 3 3 1 1 2 9 3 8 0 1 1 1 1 1 1 1 1 1 1 7 0 1 0 3 1 0 0 2 0 0 8 7 3 8 8 3 9 0 7 8 3 . . . . . . . . . . . 2 7 2 4 6 2 9 3 3 6 3 1 1 1 1 1 1 1 1 1 9 7 0 0 2 1 1 4 0 0 0 9 1 8 7 3 3 2 6 9 7 3 . . . . . . . . . . . 2 8 3 8 8 5 2 7 3 9 0 1 1 1 1 1 1 1 1 1 1 7 0 5 2 0 1 0 1 0 0 0 5 7 3 5 7 3 4 2 9 8 5 . . . . . . . . . . . 4 4 9 9 3 8 1 5 1 3 6 1 1 1 1 1 1 1 1 1 1 8 6 0 0 1 1 0 2 1 1 1 5 6 9 8 4 3 9 9 4 3 2 . . . . . . . . . . . 2 4 0 6 8 8 5 6 9 4 9 1 1 1 1 1 1 1 1 1 1 9 0 0 3 7 1 1 1 1 2 1 5 9 8 1 6 5 0 4 9 4 7 . . . . . . . . . . . 4 6 6 9 4 9 0 9 5 9 0 1 1 1 1 1 1 1 1 1 1 9 0 0 2 1 8 1 2 3 0 1 8 9 9 8 6 8 4 3 1 9 8 . . . . . . . . . . . 8 8 4 5 6 4 0 4 5 9 6 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 20 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 21 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 23 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 24 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 25 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 26 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 27 Industrial 4.0 115.8 112.3 113.1 112.2 113.7 115.0 115.0 115.6 117.2 117.3 117.8 117.6 118.5 119.5 28 Transit 2.5 141.2 144.1 146.7 146.5 145.0 145.0 142.5 138.0 133.2 132.5 135.3 141.3 145.7 147.7 29 Autos and trucks 1.2 134.5 131.4 136.7 136.8 135.8 136.2 133.1 127.2 118.9 119.6 126.5 139.6 150.5 154.9 30 Other 1.9 119.1 109.2 112.6 113.4 114.9 117.5 116.2 117.6 119.6 121.9 123.1 124.5 125.0 125.5 31 Defense and space equipment 5.4 78.7 82.5 82.0 81.5 80.7 80.5 79.5 78.6 78.6 78.0 77.5 76.9 76.6 76.1 32 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 Materials 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 42 Basic metal materials 2.8 111.4 108.8 110.4 113.2 109.9 110.3 111.1 111.3 111.3 109.7 110.8 112.2 112.8 114.3 43 Nondurable goods materials 9.0 114.0 111.5 112.4 112.1 112.8 113.8 114.1 114.8 114.2 115.2 113.8 114.4 115.5 115.3 44 Textile materials 1.2 104.0 102.9 104.2 103.2 104.2 102.7 104.3 104.9 105.9 105.6 102.9 103.9 104.1 104.2 45 Pulp and paper materials 1,9 113.3 110.7 110.7 111.9 112.8 115.3 114.1 115.9 113.4 113.5 112.6 112.1 114.2 113.1 46 Chemical materials 3.8 117.5 114.6 114.9 114.6 115.6 116.1 117.2 118.6 117.3 119.5 117.9 118.0 119.1 119.8 47 Other 2.1 113.8 111.3 114.1 112.5 112.6 114.2 113.6 112.3 114.0 114.2 113.3 115.8 116.7 115.6 48 Energy materials 10.9 103.5 105.1 103.4 103.8 103.5 103.4 103.4 104.6 103.7 102.8 103.3 102.9 103.0 103.9 49 Primary energy 7.2 98.8 101.3 100.4 98.3 97.4 99.9 101.6 100.9 98.2 96.7 98.7 97.9 97.6 98.5 50 Converted fuel materials 3.7 112.6 112.4 109.1 114.6 115.4 110.3 106.8 111.7 114.5 114.9 112.4 112.7 113.8 114.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 110.7 108.6 108.9 109.5 109.7 110.1 110.0 110.4 110.9 111.1 111.3 111.8 112.6 113.2 52 Total excluding motor vehicles and parts.. 95.3 110.5 108.6 108.7 109.3 109.6 109.9 109.8 110.3 110.9 111.1 111.2 111.5 112.2 112.7 53 Total excluding office and computing machines 97.5 108.3 107.1 107.3 107.8 107.8 108.0 107.7 107.8 108.1 108.1 108.4 109.0 110.0 110.6 54 Consumer goods excluding autos and trucks 24.5 107.8 107.3 107.0 108.1 108.2 107.6 107.1 107.5 108.2 108.4 107.7 108.2 108.5 108.2 55 Consumer goods excluding energy 23.3 107.5 106.8 107.4 107.7 107.7 107.6 107.3 107.0 107.1 107.0 106.8 108.0 108.9 109.1 56 Business equipment excluding autos and trucks 12.7 137.2 129.5 130.7 131.3 133.2 134.6 135.6 136.8 138.7 139.1 140.6 140.9 142.2 144.1 57 Business equipment excluding office and computing equipment 12.0 122.4 120.1 121.0 120.6 121.6 122.2 121.8 121.8 122.1 121.7 123.0 123.8 125.2 126.4 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 • June 1994 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued O _ r oup c S o I d C e 2 p p 19 r o o 8 r - - 7 a 1 v 99 g 3 . 1993r 1994 tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Mar.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 10L6 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 "lO .3 165.5 158.1 167.7 163.0 158.2 162.5 169.3 164.4 167.7 148.2 161.5 178.5 172.0 172.8 94 Coal 11,12 1.2 103.6 107.9 108.2 101.7 102.3 108.2 106.4 106.7 101.0 95.9 103.9 104.7 100.7 104.0 95 Oil and gas extraction 13 5.8 92.0 93.4 92.7 90.9 90.4 90.5 91.6 93.1 91.6 92.4 93.0 92.7 92.6 92.6 96 Stone and earth minerals .. 14 .7 93.9 92.6 93.8 95.2 93.4 92.3 94.0 91.7 93.2 94.7 95.0 94.3 95.9 94.5 97 Utilities 7.7 116.0 116.8 112.8 117.5 117.8 114.4 112.1 114.9 116.9 117.7 115.3 114.6 115.4 116.6 98 Electric 49i,3PT 6.1 115.7 116.4 112.9 116.5 116.3 114.5 114.0 115.6 118.1 118.9 115.1 113.6 114.8 116.1 99 Gas 492,3PT 1.6 116.9 118.2 112.4 121.4 123.3 113.9 104.9 112.2 112.4 113.3 116.0 118.2 117.8 118.6 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 79.5 111.4 108.8 109.3 109.8 110.2 110.8 110.9 111.1 111.7 112.0 112.1 112.6 113.4 113.8 101 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 May June July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 949 1,095 1,206 1,121 1,115 1,162 1,242 1,271 1,304 1,374 1,476 1,358 1,250 7 One-family 754 911 998 919 925 977 1,015 1,047 1,097 1,145 1,198 1,115 1,053 3 Two-or-more-family 195 184 208 202 190 185 227 224 207 229 278 243 197 4 Started 1,014 1,200 1,288 1,241 1,238 1,245 1,319 1,359 1,409 1,406 1,612 1,271 1,314 5 One-family 840 1,030 1,126 1,100 1,067 1,076 1,178 1,160 1,231 1,248 1,383 1,125 1,120 6 Two-or-more-family 174 169 162 141 171 169 141 199 178 158 229 146 194 7 Under construction at end of period .. 606 612 680* 646 649 658 662 678 686 699 713 718 722 8 One-family 434 473 543r 515 518 526 534 544 551 564 574 578 581 9 Two-or-more-family 173 140 137 131 131 132 128 134 135 135 139 140 141 10 Completed 1,091 1,158 1,193 1,137 1,168 1,097 1,248 1,172 1,248 1,248 1,289 1,221 1,342 11 One-family 838 964 1,040 992 997 955 1,068 1,041 1,081 1,107 1,139 1,080 1,185 17 Two-or-more-family 253 194 153 145 171 142 180 131 167 141 150 141 157 13 Mobile homes shipped 171 210 254 235 238 246 247 254 260 283 308 316 301 Merchant builder activity in one-family units 14 Number sold — 507 610 666 635 641 647 645 738 723 766 822 637 664499 15 Number for sale at end of period ... 284 266 296 273 274 277 286 288 291 294 2% 300 306 Price of units sold (thousands of dollars) 16 Median 120.0 121.3 126.1 129.9 124.5 123.9 126.6 129.4 125.0 130.0 125.0 112266..55 113322..00 17 Average 147.0 144.9 147.6 152.3 145.7 143.4 150.6 150.1 146.9 152.5 145.8 154.4 156.6 EXISTING UNITS (one-family) 18 Number sold 3,219 3,520 3,800 3,610 3,700 3,850 3,860 3,990 4,030 4,120 4,350 4,250 3,840 Price of units sold (thousands of dollars) 19 Median 99.7 103.6 106.5 106.5 109.2 108.4 108.8 107.2 106.6 107.1 107.4 110077..99 110066..99 20 Average 127.4 130.8 133.1 132.6 137.3 135.8 135.4 133.6 133.0 133.1 133.7 134.6 132.8 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 403,439 436,043 470,118r 453,256 460,680 466,593 468,547 477,125 488,661r 497,875r 508,720 494,799 488,805 77 Private 293,536 317,256 342,953 332,231 335,028 337,909 341,351 345,572 354,506r 364,512r 371,444 364,502 361,217 73 Residential 157,837 187,820 208,092 198,380 200,4% 204,631 206,594 209,520 215,934r 222,797r 229,245 229,091 230,355 74 Nonresidential 135,699 129,436 134,861 133,851 134,532 133,278 134,757 136,052 138,572r 141,715r 142,199 135,411 130,862 75 Industrial buildings 22,281 20,720 20,654 20,091 19,316 19,799 20,126 21,346 21,251r 22,194r 21,767 21,193 20,420 76 Commercial buildings 48,482 41,523 43,145 42,428 42,723 41,524 42,342 42,225 44,224r 45,%7r 48,160 45,147 42,588 77 Other buildings 20,797 21,494 23,405 23,293 23,849 23,817 25,047 24,487 24, (tiff 23,998r 24,140 22,715 22,973 28 Public utilities and other 44,139 45,699 47,657 48,039 48,644 48,138 47,242 47,994 48,488r 49,556r 48,132 46,356 44,881 79 Public 109,900 118,784 127,166r 121,025 125,652 128,684 127,1% 131,553 134,155r 133,362r 137,276 130,2% 127,589 30 Military 1,837 2,502 2,448r 2,393 2,234 2,493 2,583 2,492 2,315r 2,237r 2,310 2,762 2,463 31 Highway 32,026 34,929 37,299 34,320 37,649 37,376 35,148 39,147 40,644r 41,341r 40,857 40,807 37,941 37 Conservation and development... 4,861 5,918 5,937r 6,019 6,103 5,661 5,620 6,307 5,951r 5,249r 5,311 5,787 6,710 33 Other 71,176 75,435 81,482r 78,293 79,666 83,154 83,845 83,607 85,245r 84,535r 88,798 80,940 80,475 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 • June 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 llleeevvveeelll,,, 1993 1994 1993 1994' MMMaaarrr... 11999933 11999944 111999999444111 MMaarr.. MMaarr.. June Sept. Dec. Mar. Nov. Dec. Jan. Feb. Mar. CONSUMER PRICES2 (1982-84=100) 1 All items 3.1 2.5 2.5 2.0 3.3 2.5 .3 .2 .0 .3 .3 147.2 2 Food 1.4 2.2 2.3 2.6 4.9 -1.1 .2 .5 -.1 -.3 .1 143.2 3 Energy items 3.6 -.6 -3.8 -4.2 1.2 4.7 -.9 -.7 -.8 1.6 .4 101.9 4 All items less food and energy 3.4 2.9 3.2 2.1 3.4 2.9 .4 .2 .1 .3 .3 155.8 5 Commodities 2.6 1.0 .9 .0 2.4 .6 .3 .1 .0 -.1 .3 136.9 6 Services 3.7 3.8 4.1 3.5 3.7 4.2 .4 .3 .2 .4 .4 166.6 PRODUCER PRICES (1982=100) 7 Finished goods 2.0 .2 .0 -2.5 -.3 3.9 .1 -.1 .2 .5 .2 125.0 8 Consumer foods 1.2 2.2 1.3 3.2 5.2 -.9 ,8r .6 -.3 -.4 .5 127.5 9 Consumer energy 4.2 -3.5 -5.4 -7.4 -14.6 15.3 -2.1 -2.6 .8 2.8 .0 74.8 10 Other consumer goods 2.1 -.6 .6 -6.4 1.2 2.6 .4 .1 .3 .2 .1 138.7 11 Capital equipment 1.8 1.9 .6 2.2 .9 4.0 .3 .3 .6 .1 .3 133.7 Intermediate materials 12 Excluding foods and feeds 2.3 .4 .3 -1.0 -.7 3.1 .2r -.4r .2 .4 .2 116.8 13 Excluding energy 1.9 1.0 .0 1.0 1.6 1.6 .2 .2 .2 .0 .2 125.1 Crude materials 14 Foods 1.0 5.3 -3.0 13.1 15.5 -2.5 4.7r ,4r -.9 1.2 -1.0 114.0 15 Energy 7.6 -5.9 17.5 -28.1 -26.8 26.7 -6.3r -7.4r 3.8 -6.4 9.3 73.1 16 Other 7.9 10.9 11.2 -4.5 19.6 19.0 i.r 2.1r 1.6 2.0 .9 153.3 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 11999933rr Q4 Ql Q2 Q3 Q4r GROSS DOMESTIC PRODUCT 1 Total 5,722.9 6,038.5 6,377.9 6,194.4 6,261.6 6,327.6 6,395.9 6,526.5 By source 2 Personal consumption expenditures 3,906.4 4,139.9 4,391.8 4,256.2 4,2%.2 4,359.9 4,419.1 4,492.0 3 Durable goods 457.8 497.3 537.9 516.6 515.3 531.6 541.9 562.8 4 Nondurable goods 1,257.9 1,300.9 1,350.0 1,331.7 1,335.3 1,344.8 1,352.4 1,367.5 5 Services 2,190.7 2,341.6 2,503.9 2,407.9 2,445.5 2,483.4 2,524.8 2,561.8 6 Gross private domestic investment 736.9 796.5 891.7 833.3 874.1 874.1 884.0 934.5 7 Fixed investment 745.5 789.1 876.1 821.3 839.5 861.0 876.3 927.6 8 Nonresidential 555.9 565.5 623.7 579.5 594.7 619.1 624.9 656.0 9 Structures 182.6 172.6 178.7 171.1 172.4 177.6 179.1 185.8 10 Producers' durable equipment 373.3 392.9 445.0 408.3 422.2 441.6 445.8 470.2 11 Residential structures 189.6 223.6 252.4 241.8 244.9 241.9 251.3 271.6 12 Change in business inventories -8.6 7.3 15.6 12.0 34.6 13.1 7.7 6.9 13 Nonfarm -8.6 2.3 21.1 9.5 33.0 16.8 22.6 12.0 14 Net exports of goods and services -19.6 -29.6 -63.6 -38.8 -48.3 -65.1 -71.9 -69.1 15 Exports 601.5 640.5 661.7 654.7 651.3 660.0 653.2 682.4 16 Imports 621.1 670.1 725.3 693.5 699.6 725.0 725.1 751.5 17 Government purchases of goods and services 1,099.3 1,131.8 1,158.1 1,143.8 1,139.7 1,158.6 1,164.8 1,169.1 18 Federal 445.9 448.8 443.4 452.4 442.7 447.5 443.6 440.0 19 State and local 653.4 683.0 714.6 691.4 697.0 711.1 721.2 729.2 By major type of product 20 Final sales, total 5,731.6 6,031.2 6,362.3 6,182.5 6,227.1 6,314.5 6,388.2 66,,551199..66 21 Goods 2,227.0 2,305.5 2,406.4 2,365.6 2,362.9 2,395.0 2,401.7 2,465.8 77 Durable 934.3 975.8 1,037.0 1,008.3 1,003.5 1,037.8 1,032.9 1,073.7 23 Nondurable 1,292.8 1,329.6 1,369.3 1,357.3 1,359.3 1,357.1 1,368.8 1,392.1 24 Services 3,032.7 3,221.1 3,410.5 3,296.1 3,341.8 3,388.1 3,437.8 3,474.3 25 Structures 471.9 504.7 545.5 520.8 522.4 531.5 548.7 579.5 26 Change in business inventories -8.6 7.3 15.6 12.0 34.6 13.1 7.7 6.9 27 Durable goods -12.9 2.1 10.9 -1.2 15.0 2.7 14.8 11.0 28 Nondurable goods 4.3 5.3 4.7 13.2 19.5 10.4 -7.2 -4.1 MEMO 29 Total GDP in 1987 dollars 4,861.4 4,986.3 5,136.0 5,068.3 5,078.2 5,102.1 5,138.3 5,225.6 NATIONAL INCOME 30 Total 4,598.3 4,836.6 5,140.9 4,975.8 5,038.9 5,104.0 5,143.2 5,277.6 31 Compensation of employees 3,402.4 3,582.0 3,772.2 3,658.6 3,705.1 3,750.6 3,793.9 3,839.2 32 Wages and salaries 2,814.9 2,953.1 3,100.5 3,015.8 3,054.3 3,082.7 3,115.4 3,149.6 33 Government and government enterprises 545.3 567.5 589.7 574.2 584.1 586.3 592.8 595.4 34 Other 2,269.6 2,385.6 2,510.8 2,441.6 2,470.2 2,496.3 2,522.6 2,554.2 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 290.6 306.3 321.0 311.3 312.2 321.4 323.8 326.7 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 professional 339.5 370.6 397.3 383.6 388.4 392.4 397.6 410.6 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 12.6 -1.2 7.5 12.7 13.7 16.4 42 Corporate profits1 369.5 407.2 467.3 439.5 432.1 458.1 468.5 510.5 43 Profits before tax3 362.3 395.4 450.0 409.9 419.8 445.6 443.8 491.0 44 Inventory valuation adjustment 4.9 -5.3 -7.1 4.9 -12.7 -12.2 1.0 -4.3 45 Capital consumption adjustment 2.2 17.1 24.3 24.7 25.1 24.7 23.8 23.9 46 Net interest 462.8 442.0 445.6 447.7 450.1 443.2 444.6 444.5 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • June 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 11999933rr Q4 Q1 Q2 Q3 Q4r PERSONAL INCOME AND SAVING 1 Total personal income 4,850.9 5,144.9 5,388.3 5,328.3 5,254.7 5,373.2 5,412.7 5,512.7 2 Wage and salary disbursements 2,815.0 2,973.1 3,080.5 3,095.8 2,974.3 3,082.7 3,115.4 3,149.6 3 Commodity-producing industries 738.1 756.5 763.6 783.3 740.7 765.1 769.4 779.3 4 Manufacturing 557.2 577.6 577.3 602.0 559.7 580.3 581.5 587.8 5 Distributive industries 648.0 682.0 706.6 709.9 682.9 709.1 714.4 720.1 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 545.4 567.5 589.7 574.2 584.1 586.3 592.8 595.4 8 Other labor income 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 339.5 370.6 397.3 383.6 388.4 392.4 397.6 410.6 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 12.6 -1.2 7.5 12.7 13.7 16.4 127.9 140.4 158.3 152.3 157.0 157.8 159.0 159.4 14 Personal interest income 715.6 694.3 695.2 694.5 695.4 693.1 695.7 696.7 15 Transfer payments 769.9 858.4 912.1 877.4 894.4 905.5 918.5 929.8 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 237.8 249.3 264.3 253.3 256.6 264.5 266.8 269.2 18 EQUALS: Personal income 4,850.9 5,144.9 5,388.3 5,328.3 5,254.7 5,373.2 5,412.7 5,512.7 19 LESS: Personal tax and nontax payments 620.4 644.8 681.6 670.7 657.1 681.0 689.0 699.2 20 EQUALS: Disposable personal income 4,230.5 4,500.2 4,706.7 4,657.6 4,597.5 4,692.2 4,723.7 4,813.5 21 LESS: Personal outlays 4,029.0 4,261.5 4,516.8 4,377.9 4,419.7 4,483.6 4,544.0 4,620.1 22 EQUALS: Personal saving 201.5 238.7 189.9 279.7 177.9 208.7 179.7 193.4 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,237.9 19,518.0 19,887.4 19,754.1 19,744.4 1199,,778855..44 1199,,886688..88 2200,,115500..11 24 Personal consumption expenditures 12,895.2 13,080.9 13,371.3 13,240.9 13,234.2 13,311.6 13,416.2 13,522.7 25 Disposable personal income 13,965.0 14,219.0 14,330.0 14,490.0 14,163.0 14,326.0 14,341.0 14,491.0 26 Saving rate (percent) 4.8 5.3 4.0 6.0 3.9 4.4 3.8 4.0 GROSS SAVING 27 Gross saving 733.7 717.8 780.9 718.8 762.0 766.7 774.3 820.4 28 Gross private saving 929.9 986.9 1,005.2 969.4 1,024.8 988.3 988.7 1,019.0 29 Personal saving 201.5 238.7 189.9 279.7 177.9 208.7 179.7 193.4 30 Undistributed corporate profits 102.3 110.4 124.0 121.7 103.7 116.3 129.3 146.6 31 Corporate inventory valuation adjustment 4.9 -5.3 -7.1 4.9 -12.7 -12.2 1.0 -4.3 Capital consumption allowances 383.2 396.6 408.8 396.5 440022..22 440055..22 441144..00 441133..99 33 Noncorporate 242.8 261.3 262.5 251.5 261.0 258.1 265.7 265.1 34 Government surplus, or deficit (-), national income and product accounts -196.2 -269.1 -224.3 -250.6 -262.8 -221.5 --221144..44 --119988..66 35 Federal -203.4 -276.3 -226.2 -264.2 -263.5 -222.6 -212.7 -206.0 36 State and local 7.3 7.2 1.9 13.5 .8 1.1 -1.7 7.5 37 Gross investment 743.3 741.4 795.4 750.9 796.5 778.7 787.6 819.0 38 Gross private domestic 736.9 796.5 891.7 833.3 874.1 874.1 884.0 934.5 39 Net foreign 6.4 -55.1 -96.2 -82.4 -77.6 -95.4 —96.4 -115.5 40 Statistical discrepancy 9.6 23.6 14.6 32.1 34.4 12.0 13.3 -1.4 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1992 1993 Item credits or debits 11999911 11999922 11999933 Q4 Q1 Q2 Q3* Q4P 1 Balance on current account -8,324 -66,400 -109,242 -23,687 -22,375r -27,235* -28,091 -31,539 2 Merchandise trade balance -73,802 -96,138 -132,478 -25,962 -29,325r -34,398* -35,972 -32,783 3 Merchandise exports 416,937 440,138 456,766 113,992 111,480* 113,067* 111,935 120,284 4 Merchandise imports -490,739 -536,276 -589,244 -139,954 -140,805* -147,465* -147,907 -153,067 5 Military transactions, net -5,851 -2,751 -1,027 -836 -145 -226 -128 -528 6 Other service transactions, net 51,733 59,163 56,706 14,265 14,799* 14,716* 13,983 13,209 7 Investment income; net 13,021 6,222 66 -806 -112* -27* 1,617 -1,411 8 U.S. government grants 24,073 -14,688 -14,438 -5,883 -3,242 -2,730 -3,029 -5,437 9 U.S. government pensions and other transfers -3,461 -3,735 -3,946 -846 -985* -986* -985 -989 10 Private remittances and other transfers -14,037 -14,473 -14,126 -3,619 -3,365* -3,584* -3,577 -3,600 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,905 -1,609 -106 -737 535 -275 -180 -186 12 Change in U.S. official reserve assets (increase, -) 5,763 3,901 -1,379 1,542 -983 822 -545 -673 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -177 2,316 -537 2,829 -140 -166 -118 -113 15 Reserve position in International Monetary Fund -367 -2,692 -44 -2,685 -228 313 -48 -80 16 Foreign currencies 6,307 4,277 -797 1,398 -615 675 -378 -480 17 Change in U.S. private assets abroad (increase, -) -68,643 -53,253 -142,388 -31,243 -12,267* -30,244* -42,674 -57,203 18 Bank-reported claims 3,278 24,948 34,582 -3,481 28,055 5,317 8,487 -7,277 19 Nonbank-reported claims 1,932 4,551 1,132 -4,774 443 2,982 20 U.S. purchases of foreign securities, net -44,740 -47,961 -125,377 -17,405 -26,889 -24,098 -45,794 -28,596 21 U.S. direct investments abroad, net -29,113 -34,791 -50,244 -11,489 -8,659* -11,906* -8,349 -21,330 22 Change in foreign official assets in United States (increase, +) .. 17,564 40,684 71,225 5,931 10,929 17,699 19,237 23,360 23 U.S. Treasury securities 14,846 18,454 48,700 -7,379 1,039 5,668 19,098 22,895 24 Other U.S. government obligations 1,301 3,949 4,091 874 710 1,082 1,345 954 25 Other U.S. government liabilities 1,542 2,542 1,890 943 -395 396 1,105 784 26 Other U.S. liabilities reported by U.S. banks3 -1,484 16,427 13,959 11,219 8,171 9,454 -2,495 -1,171 27 Other foreign official assets5 1,359 -688 2,585 274 1,404 1,099 184 -102 28 Change in foreign private assets in United States (increase, +).. 65,876 88,895 155,154 32,914 14,946* 24,838* 52,400 62,970 29 U.S. bank-reported liabilities3 -11,371 18,609 12,208 -1,171 -18,862 -1,381 24,941 7,510 30 U.S. nonbank-reported liabilities -699 741 -2,717 2,057 1,361 4,069 31 Foreign private purchases of U.S. Treasury securities, net 18,826 36,893 24,328 21,232 13,599 -623 3,474 ' 7,878 32 Foreign purchases of other U.S. securities, net 35,144 30,274 79,612 12,478 9,394 15,025 17,257 37,936 33 Foreign direct investments in United States, net 23,975 2,378 31,519 3,092 8,758* 10,456* 2,659 9,646 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 3 3 5 6 Di D sc u r e e p t a o n s c e y a sonal adjustment -15,140 -12,218 26,735 15 1 , , 2 22 8 2 0 9 6 , , 2 0 1 8 5 2 * * 14,3 9 9 4 5 3 * * -7 - , 1 3 4 1 8 9 3,2 2 7 9 1 2 37 Before seasonal adjustment -15,140 -12,218 26,735 14,058 3,133* 13,452 7,171 2,979 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) 5,763 3,901 -1,379 1,542 -983 822 -544 -673 39 Foreign official assets in United States, excluding line 25 (increase, +) 16,022 38,142 69,335 4,988 11,324 17,303 18,132 22,576 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -4,882 5,857 -3,968 2,336 463 -916 -3,244 -271 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 • June 1994 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1993 1994 IItteemm 11999911 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan.r Feb." 1 Goods and services, balance -27,920 -39,727 -76,761 -7,044 -8,183 -8,460 -7,455 -4,148 -6,644 -9,705 2 Merchandise -73,802 —96,138 -132,439 -11,647 -12,568 -12,644 -11,351 -8,748 -11,350 -13,886 3 Services 45,882 56,411 55,678 4,603 4,385 4,184 3,896 4,600 4,706 4,181 4 Goods and services, exports 581,197 619,848 643,563 52,731 53,660 54,957 54,735 57,250 54,295 52,902 5 Merchandise 416,937 440,138 456,771 37,224 38,134 39,371 39,451 41,469 38,528 37,165 6 Services 164,260 179,710 186,792 15,507 15,526 15,586 15,284 15,781 15,767 15,737 7 Goods and services, imports 609,117 659,575 720,324 59,775 61,843 63,417 62,190 61,398 60,939 62,607 8 Merchandise 490,739 536,276 589,210 48,871 50,702 52,015 50,802 50,217 49,878 51,051 9 Services 118,378 123,299 131,114 10,904 11,141 11,402 11,388 11,181 11,061 11,556 MEMO --6666,,772233 --8844,,550011 --111155,,773388 --1100,,004477 --1100,,662211 --1100,,889977 --99,,667799 --77,,336677 --1100,,116699 --1122,,336633 1100 Balance on merchandise trade, Census basis 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 1990 1991 1992 Sept. Oct. Nov. Dec. Jan. Feb. 83,316 77,719 71,323 75,835 74,550 74,042 73,442 74,243 75,766 2 Gold stock, including Exchange Stabilization Fund1 11,058 11,057 11,056 11,057 11,056 11,054 11,053 11,053 11,053 3 Special drawing rights2,3 10,989 11,240 8,503 9,203 9,038 9,091 9,039 9,070 9,295 4 Reserve position in International Monetary Fund2 9,076 9,488 11,759 12,101 11,908 11,827 11,818 11,906 11,974 5 Foreign currencies 52,193 45,934 40,005 43,474 42,548 42,070 41,532 42,214 43,444 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar.p 1 Deposits 369 968 205 501 390 5% 386 257 190 454 Held in custody 2 U.S. Treasury securities 278,499 281,107 314,481 358,860 358,975 373,864 379,394 388,065 393,238 399,817 3 Earmarked gold3 13,387 13,303 13,118r 12,562 12,464 12,381 12,327 12,302 12,238 12,145 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 at face value. 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 1993r 1994 IItteemm 11999911rr 11999922rr Aug. Sept. Oct. Nov. Dec. Jan.r Feb." 1 Total1 360,530 398,816 436,969 445,693 444,107 457,129 468,825 477,525 476,242 By type 2 Liabilities reported by banks in the United States 38,396 54,967 68,824 70,220 65,668 67,964 69,633 77,363 76,147 3 U.S. Treasury bills and certificates3 92,692 104,596 136,488 139,638 140,525 144,865 150,900 146,940 143,222 U.S. Treasury bonds and notes 4 Marketable 203,677 210,553 197,165 200,346 201,965 208,188 211,825 216,209 220,254 5 Nonmarketable 4,858 4,532 5,508 5,542 5,579 5,615 5,652 5,689 5,725 6 U.S. securities other than U.S. Treasury securities 20,907 24,168 28,984 29,947 30,370 30,497 30,815 31,324 30,894 By area 7 Europe1 171,317 191,708 191,890 198,254 193,676 208,790 209,229 215,611 209,270 8 Canada 7,460 7,920 8,075 8,260 9,441 8,657 9,505 10,084 9,844 9 Latin America and Caribbean 33,554 40,025 55,340 54,704 54,275 50,410 57,950 57,761 61,033 10 Asia 139,465 152,276 174,901 177,164 178,889 182,437 185,289 187,337 189,025 11 Africa , 2,092 3,565 3,109 3,888 3,665 3,650 3,894 3,681 4,043 12 Other countries6 6,640 3,320 3,652 3,421 4,159 3,183 2,956 3,049 3,025 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% 81,091 75,206 81,205 77,597 2 Banks' claims 66,796 73,195 62,799 64,256 55,533 59,116 60,244 3 Deposits 29,672 26,192 24,240 23,142 20,464 20,930 19,379 4 Other claims 37,124 47,003 38,559 41,114 35,069 38,186 40,865 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 • June 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 11999933rr Aug.r Sept.r Oct. Nov. Dec.r Jan.r Feb.p HOLDER AND TYPE OF LIABILITY 1 Total, ail foreigners 756,066 810,259 902,955 860,589 875,947 877,062' 893,284r 902,955 885,370 909,828 2 Banks' own liabilities 575,374 606,444 620,689 606,790 615,305 610,744r 616,209"^ 620,689 607,870 629,422 3 Demand deposits 20,321 21,828 21,572 21,374 25,376 22,014r 25,462 21,572 23,485 24,211 4 Time deposits 159,649 160,385 174,984 153,905 154,405 159,375r 156,994r 174,984 158,929 159,767 5 Other3 66,305 93,237 109,873 115,387 112,096 128,942r 126,845r 109,873 128,360 134,479 6 Own foreign offices 329,099 330,994 314,260 316,124 323,428 300,413' 306,908 314,260 297,0% 310,965 7 Banks' custodial liabilities5 180,692 203,815 282,266 253,799 260,642 266,318r 277,075r 282,266 277,500 280,406 8 U.S. Treasury bills and certificates 110,734 127,644 176,430 161,827 116655,,115511 164,365 116699,,772299 117766,,443300 117700,,669944 116666,,997777 9 Other negotiable and readily transferable instruments 18,664 21,974 36,078 27,643 30,879 37,562 38,555 36,078 37,329 41,829 10 Other 51,294 54,197 69,758 64,329 64,612 64,391r 68,791r 69,758 69,477 71,600 11 Nonmonetary international and regional organizations 8,981 9,350 10,846 12,365 11,409 10,994r 12,965r 10,846 10,869 6,999 12 Banks' own liabilities 6,827 6,951 5,550 8,671 7,995 6,790"^ 9,091r 5,550 6,855 5,624 13 Demand deposits 43 46 15 37 21 71 34 15 21 120 14 Time deposits 2,714 3,214 2,780 2,882 4,062 2,978r 2,863r 2,780 3,305 2,503 15 Other3 4,070 3,691 2,755 5,752 3,912 3,741 6,194 2,755 3,529 3,001 16 Banks' custodial liabilities5 2,154 2,399 5,296 3,694 3,414 4,204 3,874 5,296 4,014 1,375 17 U.S. Treasury bills and certificates 1,730 1,908 4,275 3,418 33,,119999 33,,556666 33,,220011 44,,227755 33,,449977 11,,332211 18 Other negotiable and readily transferable instruments 424 486 1,021 276 215 638 672 1,021 517 54 19 Other 0 5 0 0 0 0 1 0 0 0 20 Official institutions9 131,088 159,563 220,533 205,312 209,858 206,193 212,829r 220,533 224,303 219,369 21 Banks' own liabilities 34,411 51,202 64,056 62,252 63,619 60,995 62,168r 64,056 70,348 65,518 22 Demand deposits 2,626 1,302 1,601 1,317 1,951 2,121 2,089 1,601 1,631 1,406 23 Time deposits 16,504 17,939 21,634 18,197 20,825 14,885 17,188r 21,634 20,117 19,978 24 Other. 15,281 31,961 40,821 42,738 40,843 43,989 42,891r 40,821 48,600 44,134 25 Banks' custodial liabilities5 96,677 108,361 156,477 143,060 146,239 145,198 150,661 156,477 153,955 153,851 26 U.S. Treasury bills and certificates6 92,692 104,596 150,900 113366,,448888 113399,,663388 114400,,552255 114444,,886655 115500,,990000 114466,,994400 114433,,222222 27 Other negotiable and readily transferable instruments 3,879 3,726 5,482 6,514 6,149 4,491 5,614 5,482 6,855 10,527 28 Other 106 39 95 58 452 182 182 95 160 102 29 Banks10 522,265 547,320 570,876 545,976 558,092 553,351r 562,372r 570,876 546,141 577,033 30 Banks' own liabilities 459,335 476,117 474,642 463,049 470,946 461,827r 468,526r 474,642 451,366 479,756 31 Unaffiliated foreign banks 130,236 145,123 160,382 146,925 147,518 161,414 161,618r 160,382 154,270 168,791 32 Demand deposits 8,648 10,170 9,715 10,482 12,809 9,948 13,369 9,715 11,022 11,980 33 Time deposits 82,857 90,296 105,192 86,607 83,484 95,704r 92,265r 105,192 87,894 92,635 34 Other3 38,731 44,657 45,475 49,836 51,225 55,762r 55,984r 45,475 55,354 64,176 35 Own foreign offices4 329,099 330,994 314,260 316,124 323,428 300,413r 306,908 314,260 297,0% 310,%5 36 Banks' custodial liabilities5 62,930 71,203 96,234 82,927 87,146 91,524r 93,846r 96,234 94,775 97,277 37 U.S. Treasury bills and certificates6 7,471 11,087 10,707 1111,,332277 1111,,779944 1100,,004466 1100,,553399 1100,,770077 99,,883322 1111,,005511 38 Other negotiable and readily transferable instruments7 5,694 7,555 16,810 8,760 12,688 19,106 17,124 16,810 17,136 17,010 39 Other 49,765 52,561 68,717 62,840 62,664 62,372r 66,183r 68,717 67,807 69,216 40 Other foreigners 93,732 94,026 100,700 96,936 96,588 106,524r 105,118r 100,700 104,057 106,427 41 Banks' own liabilities 74,801 72,174 76,441 72,818 72,745 81,132r 76,424r 76,441 79,301 78,524 42 Demand deposits 9,004 10,310 10,241 9,538 10,595 9,874r 9,970 10,241 10,811 10,705 43 Time deposits 57,574 48,936 45,378 46,219 46,034 45,808r 44,678 45,378 47,613 44,651 44 Other. 8,223 12,928 20,822 17,061 16,116 25,450 21,776r 20,822 20,877 23,168 45 Banks' custodial liabilities5 18,931 21,852 24,259 24,118 23,843 25,392 28,694 24,259 24,756 27,903 46 U.S. Treasury bills and certificates 8,841 10,053 10,548 10,594 1100,,552200 1100,,222288 1111,,112244 1100,,554488 1100,,442255 1111,,338833 47 Other negotiable and readily transferable instruments 8,667 10,207 12,765 12,093 11,827 13,327 15,145 12,765 12,821 14,238 48 Other 1,423 1,592 946 1,431 1,496 1,837 2,425 946 1,510 2,282 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 7,456 9,111 17,567 9,481 11,264 17,533 17,089 17,567 17,509 17,888 1. Reporting banks include all types of depository institution, as well as some 6. Includes nonmarketable certificates of indebtedness and Treasury bills brokers and dealers. issued to official institutions of foreign countries. 2. Excludes negotiable time certificates of deposit, which are included in 7. Principally bankers acceptances, commercial paper, and negotiable time "Other negotiable and readily transferable instruments." certificates of deposit. 3. Includes borrowing under repurchase agreements. 8. Principally the International Bank for Reconstruction and Development, the 4. For U.S. banks, includes amounts owed to own foreign branches and foreign Inter-American Development Bank, and the Asian Development Bank. Excludes subsidiaries consolidated in Consolidated Report of Condition filed with bank "holdings of dollars" of the International Monetary Fund. regulatory agencies. For agencies, branches, and majority-owned subsidiaries of 9. Foreign central banks, foreign central governments, and the Bank for foreign banks, consists principally of amounts owed to head office or parent International Settlements. foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of 10. Excludes central banks, which are included in "Official institutions." head office or parent foreign bank. 5. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A57 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1993 1994 IItteemm 11999911 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan. Feb.p AREA 1 Total, all foreigners 756,066 810,259 902,955r 860,589" 875,947' 877,062' 893,284" 902,955' 885,370" 909,828 2 Foreign countries 747,085 800,909 892,109r 848,224r 864,538r 866,068' 880,319" 892,109" 874,501" 902,829 3 Europe 249,097 307,670 376,641r 335,418r 340,430" 357,848' 369,534 376,641" 367,653' 392,252 4 Austria 1,193 1,611 l,907r 1,614 1,672 1,808 1,797 1,907" 2,567 2,159 5 Belgium and Luxembourg 13,337 20,567 28,650 23,345 23,635 24,641 27,541 28,650 29,402' 30,624 6 Denmark 937 3,060 4,517 3,023 3,135 5,084 4,151 4,517 5,089 4,831 7 Finland 1,341 1,299 1,872 2,667 2,347 2,712 2,250 1,872 1,843 1,737 8 France 31,808 41,411 39,705r 36,517 40,622 43,034 36,638' 39,705" 32,244 38,429 9 Germany 8,619 18,630 26,617 22,199 22,530 22,820 27,025 26,617 27,576 30,249 10 Greece 765 913 1,530 1,122 1,378 1,366 1,704 1,530 1,361 1,481 11 Italy 13,541 10,041 11,561 11,427r 11,285 10,466 10,734 11,561 10,702 12,742 17 Netherlands 7,161 7,365 16,03 lr 10,854 11,429 13,368 14,737 16,031" 17,532 17,083 N Norway 1,866 3,314 2,975 2,833 2,901 2,7% 3,199 2,975 2,533 2,350 14 Portugal 2,184 2,465 3,366 3,015 3,180 3,215 3,229 3,366 3,131 3,170 15 Russia 241 577 2,511 2,254 2,229 2,623 2,530 2,511 2,208 2,017 16 Spain 11,391 9,793 20,494r 17,208r 20,4%r 20,182r 19,705 20,494' 19,652 18,119 17 Sweden 2,222 2,953 2,573 1,460 3,474 2,355 2,672 2,573 2,301 2,429 18 Switzerland 37,238 39,440 41,588 40,988r 41,909 43,195 42,506 41,588 40,954' 41,278 19 Turkey 1,598 2,666 3,228 2,618 2,553 . 2,897 2,947 3,228 3,120 3,242 70 United Kingdom 100,292 111,805 133,788r 118,755r 116,267r 130,941 135,712 133,788' 130,778' 148,083 71 Yugoslavia11 622 504 570 511 524 541 546 570 549 428 22 Other Europe and former U.S.S.R.12 12,741 29,256 33,158r , 33,008r 28,864r 23,804 29,911' 33,158' 34,111' 31,807 23 Canada 21,605 22,420 20,228r 23,673" 24,711" 27,452 24,152 20,228" 20,589" 23,126 74 Latin America and Caribbean 345,529 317,228 339,733r 330,9%r 340,502r 327,666' 331,875" 339,733' 335,373" 337,621 25 Argentina 7,753 9,477 14,493 14,581r 14,052r 14,320" 13,695 14,493 14,495 14,451 76 Bahamas 100,622 82,284 73,077 75,215r 79,363r 76,557 78,354 73,077 71,693" 72,579 77 Bermuda 3,178 7,079 7,875" 6,931 7,239 8,021 7,287 7,875' 7,794" 6,750 78 Brazil 5,704 5,584 5,307r 5,299 5,268 5,057 5,069 5,307' 5,127" 5,391 79 British West Indies 163,620 153,033 172,657r 162,645r 169,550" 159,434' 166,637" 172,657' 168,735" 167,417 30 Chile 3,283 3,035 3,202r 3,5% 3,867 3,952 3,455 3,202' 3,576" 3,755 31 Colombia 4,661 4,580 3,173r 4,383 3,988 3,025 3,101 3,173' 3,587 3,287 3? Cuba 2 3 33 5 6 7 7 33 34 30 33 Ecuador 1,232 993 881 860 819 868 851 881 891 858 34 Guatemala 1,594 1,377 1,207 1,315 1,278 1,275 1,243 1,207 1,258 1,223 35 Jamaica 231 371 410 364 375 376 401 410 387 420 36 Mexico 19,957 19,454 28,060" 24,907r 24,487r 24,249" 21,947 28,060' 27,667 30,693 37 Netherlands Antilles 5,592 5,205 4,206 5,413 4,695 5,283 4,725 4,206 5,139" 6,230 38 Panama 4,695 4,177 3,625 3,657 3,743 3,567 3,468 3,625 3,592 3,474 39 Peru 1,249 1,080 926r 898 903 873 890 926' 880 907 40 Uruguay 2,0% 1,955 l,617r 1,822 l,752r 1,716 1,643 1,617' 1,727 1,537 41 Venezuela 13,181 11,387 12,806r 12,782 12,868 12,903 13,076 12,806' 12,460 12,438 42 Other 6,879 6,154 6,178r 6,323 6,249 6,183 6,026 6,178' 6,331 6,181 43 120,462 143,540 144,653r 147,517 147,672r 141,363 144,476 144,653' 140,0%" 139,600 China 44 People's Republic of China 2,626 3,202 4,011 3,292 3,261 3,280 3,187 4,011 4,075 4,535 45 Republic of China (Taiwan) 11,491 8,408 10,634 9,483 9,%9 9,804 10,960 10,634 9,960 9,506 46 Hong Kong 14,269 18,499 17,233 15,621 16,388 16,389 18,673 17,233 18,675 17,763 47 India 2,418 1,399 1,113 1,211 1,288 1,251 1,425 1,113 1,436 1,127 48 Indonesia 1,463 1,480 1,986 1,582 1,715 1,504 1,674 1,986 1,807 1,659 49 Israel 2,015 3,773 4,436 2,729 3,241 5,450 4,582 4,436 4,138 4,630 50 Japan 47,069 58,435 61,483 67,999 65,650" 60,171 58,866 61,483 58,606 60,112 51 Korea (South) 2,587 3,337 4,913r 3,873 4,356 3,889 4,409 4,913' 4,721" 4,856 5? Philippines 2,449 2,275 2,035 2,648 2,735 2,192 1,902 2,035 1,912 1,820 53 Thailand 2,252 5,582 6,137 6,058 5,846 6,446 6,231 6,137 6,156 5,838 54 Middle Eastern oil-exporting countries 15,752 21,437 15,825 19,141 17,255 14,681 15,489 15,825 13,131" 11,921 55 Other 16,071 15,713 14,847r 13,880 15,968 16,306 17,078 14,847' 15,479 15,833 56 4,825 5,884 6,638r 5,649 6,127 6,179 5,762 6,638" 5,823 6,329 57 Egypt 1,621 2,472 2,209 2,018 2,457 2,220 2,089 2,209 1,961 2,060 58 Morocco 79 76 99 78 86 87 110 99 94 73 59 South Africa 228 190 451 233 275 367 272 451 214 294 60 Zaire 31 19 12 20 16 15 10 12 13 8 61 Oil-exporting countries 1,082 1,346 1,303 1,279 1,281 1,271 1,446 1,303 1,186 1,433 62 Other 1,784 1,781 2,564r 2,021 2,012 2,219 1,835 2,564" 2,355 2,461 63 5,567 4,167 4,216r 4,971 5,0% 5,560 4,520" 4,216" 4,%7" 3,901 64 Australia 4,464 3,043 3,308 3,890 4,045 4,434 3,317" 3,308 3,809" 2,511 65 Other 1,103 1,124 908r 1,081 1,051 1,126 1,203' 908" 1,158 1,390 66 Nonmonetary international and regional organizations 8,981 9,350 10,846r 12,365 11,409 10,994' 12,%5' 10,846" 1100,,886699"" 6,999 67 International15 6,485 7,434 6,761r 8,367 7,679 7,350' 9,094' 6,761" 6,357" 5,760 68 Latin American regional16 1,181 1,415 3,218 2,737 2,448 2,539 3,050 3,218 3,402 357 69 Other regional1 1,315 501 867 1,261 1,282 1,105 821 867 1,110 882 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 • June 1994 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United Statesi Payable in U.S. Dollars Millions of dollars, end of period 1993 1994 AArreeaa aanndd ccoouunnttrryy 11999911 11999922 11999933 Aug. Sept.r Oct.r Nov.r Dec.r Jan.r Feb." 1 Total, all foreigners 514,339 499,437 482,873r 461,049r 477,188 465,861 468,770 482,873 470,344 476,906 2 Foreign countries 508,056 494,355 480,468r 459,097r 474,809 464,618 466,569 480,468 467,231 475,261 3 Europe 114,310 123,377 121,036r 116,828r 124,259 124,593 120,650 121,036 114,392 124,663 4 Austria 327 331 413 691 457 568 501 413 724 598 5 Belgium and Luxembourg 6,158 6,404 6,535r 6,515 6,589 5,516 5,911 6,535 5,165 6,327 6 Denmark 686 707 382 693 631 1,056 1,261 382 507 600 7 Finland 1,907 1,418 598 705 594 730 606 598 699 725 8 France 15,112 14,723 11,490 11,501' 10,974 11,516 11,622 11,490 11,705 11,033 9 Germany 3,371 4,222 7,683 6,766 7,994 7,570 6,%1 7,683 7,364 7,966 10 Greece 553 717 679 508 629 592 684 679 658 669 11 Italy 8,242 9,047 8,876r 8,824r 8,971 8,035 8,402 8,876 8,950 8,477 1? Netherlands 2,546 2,468 3,064 3,081 3,383 3,163 3,607 3,064 3,878 2,761 13 Norway 669 355 396 941 841 779 598 3% 738 777 14 Portugal 344 325 720 803 787 826 787 720 805 918 15 Russia 1,970 3,147 2,295 2,591 2,547 2,581 2,295 2,295 2,142 2,005 16 Spain 1,881 2,755 2,763 4,184 3,652 4,747 4,388 2,763 3,299 2,688 17 Sweden 2,335 4,923 4,100 4,289r 4,630 4,111 3,531 4,100 3,704 3,608 18 Switzerland 4,540 4,717 6,567 5,634 5,216 4,647 5,946 6,567 7,177 4,535 19 Turkey 1,063 962 1,287 1,549 1,418 1,638 1,790 1,287 1,118 1,627 70 United Kim>dom 60,395 63,430 60,930* 55,113r 62,508 64,044 59,403 60,930 53,216 66,995 21 Yugoslavia2 825 569 536 547 542 535 549 536 470 414 22 Other Europe and former U.S.S.R.3 1,386 2,157 1,722 1,893 1,8% 1,939 1,808 1,722 2,073 1,940 23 Canada 15,113 13,845 18,432r 17,374r 19,007 15,697 15,478 18,432 19,126 16,884 74 Latin America and Caribbean 246,137 218,078 223,688r 207,555r 215,660 212,002 216,687 223,688 225,712 225,830 75 Argentina 5,869 4,958 4,425 4,740 4,715 4,390 4,518 4,425 4,569 4,459 76 Bahamas 87,138 60,835 65,045 56,276 60,906 60,350 63,242 65,045 66,411 65,439 77 Bermuda 2,270 5,935 8,032 7,122 5,550 8,915 7,565 8,032 10,234 9,969 78 Brazil 11,894 10,773 11,803 10,927 11,294 11,675 11,677 11,803 12,719 12,825 79 British West Indies 107,846 101,507 97,485r 93,116 97,409 90,041 92,621 97,485 93,854 94,682 30 Chile 2,805 3,397 3,614 3,796 3,832 3,857 3,728 3,614 3,546 3,763 31 Colombia 2,425 2,750 3,179 2,916 2,921 2,957 3,040 3,179 3,241 3,053 37 Cuba 0 0 0 0 0 0 0 0 0 2 33 Ecuador 1,053 884 673 739 701 707 704 673 679 722 34 Guatemala 228 262 286 256 244 269 286 286 316 294 35 Jamaica 158 162 195r 181 183 175 186 195 180 176 36 Mexico 16,567 14,991 15,833r 15,653r 15,750 16,155 16,073 15,833 16,465 16,827 37 Netherlands Antilles 1,207 1,379 2,367 3,153 3,155 3,310 3,048 2,367 3,115 3,093 38 Panama 1,560 4,654 2,913r 2,361 2,370 2,491 2,625 2,913 2,843 2,983 39 Peru 739 730 651 667 617 636 620 651 693 726 40 Uruguay 599 936 951 816 926 926 918 951 793 742 41 Venezuela 2,516 2,525 3,070 2,876 2,835 2,815 3,054 3,070 2,929 2,875 42 Other 1,263 1,400 3,166r 1,960 2,252 2,333 2,782 3,166 3,125 3,200 43 125,262 131,789 110,684r lll,060r 109,020 105,497 107,541 110,684 101,398 101,513 China 44 People's Republic of China 747 906 2,299 639r 700 773 706 2,299 881 842 45 Republic of China (Taiwan) 2,087 2,046 2,628r 1,585 1,594 1,674 2,003 2,628 2,611 1,487 46 Hong Kong 9,617 9,642 10,864 9,392r 11,155 9,640 10,449 10,864 10,227 9,993 47 India 441 529 589 456r 585 635 657 589 638 664 48 Indonesia 952 1,189 1,522 1,289 1,330 1,268 1,474 1,522 1,556 1,532 49 Israel 860 820 826 775 747 752 787 826 932 798 50 Japan 84,807 79,172 59,576r 64,738r 60,163 60,283 59,934 59,576 54,164 54,583 51 Korea (South) 6,048 6,179 7,556r 7,243r 7,106 7,133 7,148 7,556 7,373 7,503 57 Philippines 1,910 2,145 1,408 1,250 1,143 1,168 1,265 1,408 1,132 1,183 53 Thailand 1,713 1,867 2,154 2,018 2,143 2,145 2,110 2,154 2,373 2,541 54 Middle Eastern oil-exporting countries4 8,284 18,540 14,398 15,912 14,251 13,580 13,853 14,398 12,903 13,190 55 Other 7,796 8,754 6,864r 5,763r 8,103 6,446 7,155 6,864 6,608 7,197 56 Africa 4,928 4,279 3,819* 3,902 4,023 3,919 3,799 3,819 3,746 3,770 57 Egypt 294 186 196 168 176 160 218 1% 198 222 58 Morocco 575 441 444 443 454 433 437 444 489 521 59 South Africa 1,235 1,041 633 705 713 663 664 633 581 558 60 Zaire 4 4 4 4 3 3 4 4 4 6 61 Oil-exporting countries5 1,298 1,002 1,128 1,224 1,206 1,187 1,119 1,128 1,169 1,197 62 Other 1,522 1,605 l,414r 1,358 1,471 1,473 1,357 1,414 1,305 1,266 63 2,306 2,987 2,809 2,378 2,840 2,910 2,414 2,809 2,857 2,601 64 Australia 1,665 2,243 2,072 1,847 2,414 2,401 1,873 2,072 2,030 1,692 65 Other 641 744 737 531 426 509 541 737 827 909 66 Nonmonetary international and regional organizations6 66,,228833 55,,008822 2,405 1,952 2,379 1,243 2,201 2,405 3,113 1,645 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 11999922 11999933 Aug. Sept. Oct. Nov. Dec. Jan. Feb.P 11 TToottaall 579,683 559,495 523,283 518,469 523,283 22 BBaannkkss'' ccllaaiimmss 514,339 499,437 482,873 461,049 477,188 465,861 468,770 482,873 470,344 476,906 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 37,126 31,367 28,980 30,295 31,925 31,320 29,761 28,980 30,828 26,557 44 OOwwnn ffoorreeiiggnn ooffffiicceess 318,800 303,991 286,339 275,331 286,710 269,968 279,876 286,339 274,946 273,043 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 116,602 109,342 98,082 93,959 96,000 91,888 92,030 98,082 91,047 97,526 66 DDeeppoossiittss 69,018 61,550 46,939 45,681 44,928 43,777 44,005 46,939 40,378 45,833 77 OOtthheerr 47,584 47,792 51,143 48,278 51,072 48,111 48,025 51,143 50,669 51,693 88 AAllll ootthheerr ffoorreeiiggnneerrss 41,811 54,737 69,472 61,464 62,553 72,685 67,103 69,472 73,523 79,780 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 iinnssttrruummeennttss 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 43,024 36,213r 22,733 28,435 24,507 27,002 21,830 22,733 21,569 21,350 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 (My 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. June Sept. Dec.p 1 Total 206,903 195,302 195,119 182,205r 182,975 189,716 194,981 By borrower 2 Maturity of one year or less 165,985 162,573 163,325 151,986r 154,312 162,005 166,268 3 Foreign public borrowers 19,305 21,050 17,813 21,239 17,962 21,211 17,447 4 All other foreigners 146,680 141,523 145,512 130,747r 136,350 140,794 148,821 5 Maturity of more than one year 40,918 32,729 31,794 30,219 28,663 27,711 28,713 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 17,408 17,204 17,719 By area Maturity of one year or less 8 Europe 49,184 51,835 53,300 54,838r 54,372 57,238 56,263 9 Canada 5,450 6,444 6,091 7,874r 7,893 9,833 7,564 10 Latin America and Caribbean 49,782 43,597 50,376 45,082r 48,552 51,619 56,686 11 53,258 51,059 45,709 37,741r 38,654 37,624 40,264 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 4,774r 3,129 3,775 3,708 Maturity of more than one year 14 Europe 3,859 3,878 5,367 4,896 4,579 4,433 4,327 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 14,043 17 5,165 4,459 5,038 5,063 4,808 4,732 5,409 18 Africa 2,374 2,335 2,380 2,130 2,050 2,049 1,934 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 • June 1994 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1991 1992 1993 AArreeaa oorr ccoouunnttrryy 11998899 11999900 Dec. Mar. June Sept. Dec. Mar. June Sept. Dec." 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 47 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 Asia 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 ..44 .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 1.9 2.0 1.9 2.0 2.1 2.1 2.4 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.3 9.7 14.4 14.0 14.9 15.2 13.8 16.7 16.9 19.1 18.7 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 11999900 11999911rr 11999922 Sept. Dec/ Mar. June Sept.* Dec." 1 Total 46,043 44,708 45,351 47,089r 45,351 46,181r 46,424* 48,674 49,453 2 Payable in dollars 40,786 39,029 37,209 38,344r 37,209 37,823r 37,014* 39,280 37,804 3 Payable in foreign currencies 5,257 5,679 8,142 8,745r 8,142 8,358r 9,410* 9,394 11,649 By type 4 Financial liabilities 21,066 22,518 23,380 24,518r 23,380 23,947r 24,714* 26,067 27,445 5 Payable in dollars 16,979 18,104 16,623 17,453r 16,623 17,021r 16,870* 18,635 18,112 6 Payable in foreign currencies 4,087 4,414 6,757 7,065r 6,757 6,926r 7,844* 7,432 9,333 7 Commercial liabilities 24,977 22,190 21,971 22,571r 21,971 22,234r 21,710* 22,607 22,008 8 Trade payables 10,683 9,252 9,886 10,234* 9,886 10,005 9,687* 9,483 9,011 9 Advance receipts and other liabilities 14,294 12,938 12,085 12,337 12,085 12,229* 12,023 13,124 12,997 10 Payable in dollars 23,807 20,925 20,586 20,891r 20,586 20,802* 20,144* 20,645 19,692 11 Payable in foreign currencies 1,170 1,265 1,385 1,680* 1,385 1,432* 1,566* 1,962 2,316 By area or country Financial liabilities 12 Europe 10,978 12,003 13,101 14,334r 13,101 13,461* 14,060* 16,341 17,862 13 Belgium and Luxembourg 394 216 414 256 414 306 268 278 175 14 France 975 2,106 1,608 2,785 1,608 1,610 2,216 2,074 2,323 15 Germany 621 682 810 738 810 820 787 779 902 16 Netherlands 1,081 1,056 606 980 606 639 585 573 534 17 Switzerland 545 408 569 627 569 503 491 378 634 18 United Kingdom 6,357 6,528 8,424 8,146r 8,424 9,029* 9,058* 11,669 12,690 19 Canada 229 292 516 345 516 576 492 663 859 20 Latin America and Caribbean 4,153 4,784 4,053 3,997 4,053 4,299* 4,199* 3,719 3,359 21 Bahamas 371 537 369 230 369 521 426 1,301 1,148 22 Bermuda 0 114 114 115 114 114 124 114 0 23 Brazil 0 6 19 18 19 18 18 18 18 24 British West Indies 3,160 3,524 2,860 2,933 2,860 2,970* 2,951* 1,600 1,533 25 Mexico 5 7 12 12 12 13 11 15 17 26 Venezuela 4 4 6 5 6 5 5 5 5 27 Asia 5,295 5,381 5,676 5,752r 5,676 5,550* 5,793* 5,194 5,203 28 Japan 4,065 4,116 4,608 4,678 4,608 4,539* 4,611* 4,165 4,134 29 Middle East oil-exporting countries2 — 5 13 19 17 19 24 19 23 23 30 Africa . 2 6 6 5 6 6 130 132 133 0 4 0 0 0 0 123 124 123 31 Oil-exporting countries3 409 52 28 85 28 55 40 18 29 32 All other4 Commercial liabilities 10,310 8,701 7,377 7,478r 7,377 6,985* 6,801* 7,045 6,809 33 Europe 275 248 2% 173 296 262 267 255 238 34 Belgium and Luxembourg 1,218 1,039 697 756 697 705 773 640 646 35 France 1,270 1,052 717 851 717 650* 603 571 684 36 Germany 844 710 535 601 535 537 577 601 687 37 Netherlands 775 575 349 482 349 471* 440 535 373 38 Switzerland 2,792 2,297 2,503 2,268r 2,503 2,117* 2,185* 2,319 2,053 39 United Kingdom 40 Canada 1,261 1,014 1,002 1,114 1,002 1,005* 941* 847 881 41 Latin America and Caribbean 1,672 1,355 1,532 l,515r 1,532 1,776 1,828* 1,759 1,661 42 Bahamas 12 3 3 3 3 11 6 4 21 43 Bermuda 538 310 307 325 307 429 356 340 348 44 Brazil 145 219 209 121 209 236 226 214 216 45 British West Indies 30 107 33 85 33 34 16 36 26 46 Mexico 475 307 457 326 457 553 659 577 485 47 Venezuela 130 94 142 147r 142 171 172 173 126 48 Asia 9,483 9,334 10,917 11,026 10,917 11,067 10,823 11,736 11,620 49 Japan 3,651 3,721 3,951 3,918 3,951 4,035 3,715 4,546 5,097 50 Middle Eastern oil-exporting countries2,3 2,016 1,498 1,889 1,813 1,889 1,796 1,815 1,934 1,543 51 Africa . 844 715 568 675 568 675 665 641 445 52 Oil-exporting countries3 422 327 309 335 309 322 378 320 153 53 Other4 1,406 1,071 575 763r 575 726* 652* 579 592 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 • June 1994 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1992 1993 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11999900 11999911rr 11999922 Sept. Dec. Mar.r Juner Sept/ Dec." 1 Total 35,348 45,262 41,894 46,271r 41,894r 45,784 41,470 42,003 42,552 2 Payable in dollars 32,760 42,564 39,287 43,297r 39,287r 42,904 38,346 38,732 39,022 3 Payable in foreign currencies 2,589 2,698 2,607 2,974 2,607r 2,880 3,124 3,271 3,530 By type 4 Financial claims 19,874 27,882 23,532 28,573 23,532 26,064 21,808 23,324 23,047 5 Deposits 13,577 20,080 15,100 19,524 15,100 16,508 11,646 13,286 12,981 6 Payable in dollars 12,552 19,080 14,302 18,387 14,302 15,450 10,728 12,307 12,171 7 Payable in foreign currencies 1,025 1,000 798 1,137 798 1,058 918 979 810 8 Other financial claims 6,297 7,802 8,432 9,049 8,432 9,556 10,162 10,038 10,066 9 Payable in dollars 5,280 6,910 7,667 8,028 7,667 8,803 9,238 9,279 9,096 10 Payable in foreign currencies 1,017 892 765 1,021 765 753 924 759 970 11 Commercial claims 15,475 17,380 18,362 17,698r 18,362r 19,720 19,662 18,679 19,505 12 Trade receivables 13,657 14,468 15,804 14,755r 15,804r 17,364 17,180 15,698 16,291 13 Advance payments and other claims 1,817 2,912 2,558 2,943 2,558 2,356 2,482 2,981 3,214 14 Payable in dollars 14,927 16,574 17,318 16,882r 17,318r 18,651 18,380 17,146 17,755 15 Payable in foreign currencies 548 806 1,044 816 l,044r 1,069 1,282 1,533 1,750 By area or country Financial claims 16 Europe 9,645 13,441 9,310 11,301 9,310 10,321 9,620 8,251 8,042 17 Belgium and Luxembourg 76 13 8 16 8 6 13 9 131 18 France 371 269 762 768 762 905 781 708 749 19 Germany 367 283 326 292 326 388 383 361 472 20 Netherlands 265 334 515 750 515 544 499 485 483 21 Switzerland 357 581 490 587 490 478 460 454 506 22 United Kingdom 7,971 11,534 6,234 8,078 6,234 6,968 6,550 5,227 4,535 23 Canada 2,934 2,642 1,709 2,281 1,709 2,007 1,781 1,593 1,810 24 Latin America and Caribbean 6,201 10,717 11,122 13,837 11,122 9,718 6,704 10,067 10,868 25 Bahamas 1,090 827 658 1,248 658 320 697 494 452 26 Bermuda 3 8 40 65 40 79 258 197 125 27 Brazil 68 351 686 589 686 592 590 590 599 28 British West Indies 4,635 9,056 9,266 11,492 9,266 8,266 4,650 8,109 8,614 29 Mexico 177 212 286 239 286 235 270 385 634 30 Venezuela 25 40 29 26 29 23 24 25 161 31 Asia 860 640 807 717 807 3,263 2,961 2,709 1,751 32 Japan 523 350 643 471 643 3,066 2,444 2,199 1,063 33 Middle East oil-exporting countries 8 5 3 4 3 3 10 5 3 34 Africa 37 57 79 71 79 128 125 88 99 35 Oil-exporting countries 0 1 9 1 9 1 1 1 1 36 All other4 195 385 505 366 505 627 617 616 477 Commercial claims 37 Europe 7,044 8,193 8,401 8,196r 8,401r 8,744 8,885 7,975 8,418 38 Belgium and Luxembourg 212 194 189 174r 189r 170 172 163 182 39 France 1,240 1,585 1,525 l,825r l,525r 1,476 1,488 11,,339944 1,754 40 Germany 807 955 931 900" 93 lr 974 979 889988 953 41 Netherlands 555 645 551 589" 55 r 730 560 399 387 42 Switzerland 301 295 362 308r 362r 436 442 376 417 43 United Kingdom 1,775 2,086 2,081 2,01 lr 2,081r 2,326 2,514 2,213 2,176 44 Canada 1,074 1,121 1,258 l,155r l,258r 1,312 1,330 1,326 1,284 45 Latin America and Caribbean 2,375 2,655 3,024 3,225r 33,,002244rr 3,431 3,414 3,023 3,145 46 Bahamas 14 13 28 12 2288rr 18 17 20 11 47 Bermuda 246 264 255 256 255 195 239 225 173 48 Brazil 326 427 356 410" 356r 834 786 406 442 49 British West Indies 40 41 40 43 40 17 43 39 69 50 Mexico 661 842 920 977r 920" 985 898 848 925 51 Venezuela 192 203 344 307 344r 341 314 282 293 52 Asia 4,127 4,591 4,764 4,328r 4,764r 5,360 5,113 5,439 5,689 53 Japan 1,460 1,899 1,879 1,779" 1,879" 2,145 1,853 2,496 2,338 54 Middle Eastern oil-exporting countries 460 620 682 513 682 761 659 446 645 55 Africa 488 430 552 439 552r 457 510 487 488 56 Oil-exporting countries 67 95 78 60 78 75 98 107 71 57 Other4 367 390 363 355r 363r 416 410 429 481 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 J F a e n b . . - Aug. Sept. Oct. Nov. Dec. Jan.r Feb." U.S. corporate securities STOCKS 1 Foreign purchases 221,367 319,449 66,666 26,133 23,892 32,350 31,924 32,843 32,238 34,428 2 Foreign sales 226,503 297,913 59,674 23,693 23,023 27,840 28,755 28,362 28,965 30,709 3 Net purchases or sales (-) -5,136 21,536 6,992 2,440 869 4,510 3,169 4,481 3,273 3,719 4 Foreign countries -5,169 21,264 7,059 2,413 951 4,598 3,099 4,457 3,273 3,786 5 Europe -4,927 10,615 6,398 670 434 3,095 1,407 2,415 2,951 3,447 6 France -1,350 -103 309 -9 -152 198 45 61 119 190 7 Germany -80 1,647 1,610 202 112 328 130 266 1,170 440 8 Netherlands -262 -603 379 133 69 134 -767 183 169 210 9 Switzerland 168 2,986 759 354 -259 409 205 338 254 505 10 United Kingdom -3,301 4,510 1,829 -204 570 1,709 1,470 1,078 614 1,215 11 Canada 1,407 -3,213 30 -128 -596 -300 11 -110 314 -284 12 Latin America and Caribbean 2,203 5,709 1,855 613 139 1,245 941 1,058 948 907 13 Middle East1 -88 -311 -117 -44 10 -77 53 11 -100 -17 14 Other Asia -3,943 8,199 -1,287 1,204 977 602 601 965 -911 -376 15 Japan -3,598 3,826 -1,247 860 1,016 349 488 681 -800 -447 16 Africa 10 63 -7 63 3 5 6 20 10 -17 17 Other countries 169 202 187 35 -16 28 80 98 61 126 18 Nonmonetary international and regional organizations 33 272 -67 27 -82 -88 70 2244 0 --6677 BONDS2 19 Foreign purchases 214,922 283,745r 47,489 22,382 24,845 27,565 28,947 28,395 24,607 22,882 20 Foreign sales 175,842 217,481r 37,727 16,387 16,294 18,938 21,545 17,427 19,418 18,309 21 Net purchases or sales (-) 39,080 66,264r 9,762 5,995 8,551 8,627 7,402 10,968 5,189 4,573 22 Foreign countries 37,964 65,726r 9,747 5,989 7,865 8,488 7,375 10,901 5,205 4,542 23 Europe 17,435 22,055r 6,071 2,290 3,913 3,973 1,534 3,118 2,742 3,329 24 France 1,203 2,346 -4 64 13 512 110 145 53 -57 25 Germany 2,480 883 -11 -207 -419 913 -231 -62 -101 90 26 Netherlands 540 -290 174 317 219 -518 49 95 75 99 27 Switzerland -579 -627 233 -327 -204 203 -80 28 176 57 28 United Kingdom 12,421 19,158r 4,437 2,035 4,059 2,666 2,300 2,853 1,676 2,761 29 Canada 237 1,653 -118 164 249 95 54 319 23 -141 30 Latin America and Caribbean 9,300 16,493 2,547 1,678 846 1,727 2,650 3,681 1,638 909 31 Middle East1 3,166 3,257 78 158 171 375 432 383 161 -83 32 Other Asia 7,545 20,846 1,150 1,432 2,373 2,256 2,765 3,137 670 480 33 Japan -450 11,569 -58 919 993 1,574 1,478 2,477 -95 37 34 Africa 354 1,149 -41 317 236 47 -2 119 -51 10 35 Other countries -73 273 60 -50 77 15 -58 144 22 38 36 Nonmonetary international and regional organizations 1,116 538 15 6 686 139 27 67 -16 3311 Foreign securities 37 Stocks, net purchases or sales (-)' -32,259 -63,320r -11,945 -8,684 -5,236 -7,474 -6,931 -6,503 -5,860 -6,085 38 Foreign purchases 150,051 246,01 lr 69,964 20,436 21,475 24,740 28,408 31,135 32,432 37,532 39 Foreign sales3 182,310 309,331r 81,909 29,120 26,711 32,214 35,339 37,638 38,292 43,617 40 Bonds, net purchases or sales (-) -15,605 -61,023r -14,811 -1,084 -9,903 -2,479 -54 -8,158 -10,403 -4,408 41 Foreign purchases 513,589 839,118r 170,039 75,882 80,145 76,034 87,459 79,334 84,223 85,816 42 Foreign sales 529,194 900,141r 184,850 76,966 90,048 78,513 87,513 87,492 94,626 90,224 43 Net purchases or sales (-), of stocks and bonds -47,864 -124,343r -26,756 -9,768 -15,139 -9,953 -6,985 -14,661 -16,263 -10,493 44 Foreign countries -51,274 -124,504r -26,667 -9,822 -15,215 -10,302 -6,994 -14,691 -16,306 -10,361 45 Europe -31,350 —81,175r -9,151 -7,060 -13,217 -5,004 -4,530 -4,351 -5,512 -3,639 46 Canada -6,893 - 14,649r -5,176 1,637 -1,404 -949 709 -1,733 -2,741 -2,435 47 Latin America and Caribbean -4,340 -9.5491 -3,875 -1,125 1,905 -1,280 -2,248 -4,566 -4,037 162 48 Asia -7,923 -15,044r -7,575 -2,649 -2,221 -2,002 -502 -3,555 -3,178 -4,397 49 Africa -13 -185 -42 7 14 14 0 13 -60 18 50 Other countries -755 -3,902r -848 -632 -292 -1,081 -423 -499 -778 -70 51 Nonmonetary international and regional organizations 3,410 161 -89 54 76 349 9 30 43 --113322 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 • June 1994 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1994 1993 1994 Country or area 1992 1993 J F a e n b . . - Aug. Sept. Oct. Nov. Dec. Jan.r Feb." Transactions, net purchases or sales -) during period1 1 Estimated total 39,288 24,294R 15,142 13,980 -10,890 3,925 15,203R 507 1,953 13,189 2 Foreign countries 37,935 24,091r 14,771 14,368 -10,748 5,055 14,584r 6% 1,692 13,079 3 Europe 19,625 -2,311 3,666 3,547 -5,917 3,500 -841 499 114 3,552 4 Belgium and Luxembourg 1,985 1,218 65 -218 207 -205 22 -65 -63 128 5 Germany 2,076 -9,977 1,272 305 1,209 1,176 -750 571 2,327 -1,055 6 Netherlands -2,959 -515 470 -167 137 -506 206 -189 52 418 7 Sweden -804 1,421 225 293 53 47 141 -31 -4 229 8 Switzerland 488 -1,501 868 -74 -209 448 573 -70 313 555 9 United Kingdom 24,184 6,266 567 3,787 -8,201 833 -1,900 -412 -1,888 2,455 10 Other Europe and former U.S.S.R -5,345 777 199 -379 887 1,707 867 695 -623 822 11 Canada 562 11,252 395 324 -1,119 -342 1,358 846 32 363 12 Latin America and Caribbean -3,222 -4,692 11,289 6,917 -3,311 3,701 2,070 -4,830 3,777 7,512 13 Venezuela 539 389 -23 -7 32 -102 19 56 -258 235 14 Other Latin America and Caribbean -1,956 -5,925 5,978 1,178 -1,700 676 -36 -1,061 3,118 2,860 15 Netherlands Antilles -1,805 844 5,334 5,746 -1,643 3,127 2,087 -3,825 917 4,417 16 Asia 23,517 20,532r -961 3,755 -574 -2,034 ll,771r 4,029 -2,152 1,191 17 Japan 9,817 17,070 -4,477 3,561 -1,809 156 5,661 649 -3,074 -1,403 18 Africa 1,103 1,156 -255 292 616 74 35 115 -135 -120 19 Other -3,650 -1,846 637 -467 -443 156 191 37 56 581 20 Nonmonetary international and regional organizations 1,353 203r 371 -388 -142 -1,130 619* -189 261 110 21 International 1,018 -302r 455 -698 -99 -874 855r 124 455 0 22 Latin American regional 533 654 123 30 18 -23 40 -1 7 116 MEMO 23 Foreign countries 37,935 24,091r 14,771 14,368 -10,748 5,055 14,584r 696 1,692 13,079 24 Official institutions 6,876 l,272r 8,429 724 3,181 1,619 6,223r 3,637 4,384 4,045 25 Other foreign2 31,059 22,819 6,342 13,644 -13,929 3,436 8,361 -2,941 -2,692 9,034 Oil-exporting countries 26 Middle East2 4,317 -8,836 -618 -1,172 -980 -820 -6 84 -1,518 900 27 Africa3 11 -5 0 0 0 0 0 -9 0 0 1. Official and private transactions in marketable U.S. Treasury securities 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and having an original maturity of more than one year. Data are based on monthly United Arab Emirates (Trucial States). transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes 3. Comprises Algeria, Gabon, Libya, and Nigeria. held by official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A65 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS1 Percent per year Rate on Apr. 30, 1994 Rate on Apr. 30, 1994 Rate on Apr. 30, 1994 Country Country Country Month Month Month effective effective effective Austria.. 4.75 Apr. 1994 Germany... 5.0 Apr. 1994 Norway 4.75 Feb. 1994 Belgium . 4.75 Apr. 1994 Italy 7.5 Feb. 1994 Switzerland 3.5 Apr. 1994 Canada.. 6.07 Apr. 1994 Japan 1.75 Sept. 1993 United Kingdom 12.0 Sept. 1992 Denmark 5.25 Apr. 1994 Netherlands 5.0 Dec. 1993 France .. 5.70 Apr. 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Eurodollars 5.86 3.70 3.18 3.26 3.36 3.26 3.15 3.43 3.75 4.00 2 United Kingdom 11.47 9.56 5.88 5.74 5.52 5.29 5.34 5.15 5.12 5.14 9.07 6.76 5.14 4.76 4.34 4.09 3.89 3.89 4.45 6.07 4 Germany 9.15 9.42 7.17 6.53 6.20 5.99 5.76 5.78 5.73 5.48 5 Switzerland 8.01 7.67 4.79 4.44 4.44 4.10 3.90 4.04 3.99 3.% 9.19 9.25 6.73 6.20 5.85 5.50 5.12 5.19 5.23 5.22 9.49 10.14 8.30 6.85 6.56 6.39 6.19 6.18 6.11 5.89 8 Italy 12.04 13.91 10.09 8.69 8.94 8.56 8.38 8.42 8.36 8.07 9.30 9.31 8.10 9.05 7.93 7.03 6.88 6.39 6.10 5.84 10 Japan 7.33 4.39 2.96 2.44 2.31 2.06 2.13 2.21 2.26 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 • June 1994 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1993 1994 Country/currency unit 1991 1992 1993 Dec. Feb. Apr. 1 Australia/dollar2 77.872 73.521 67.993 66.465 67.364 69.608 71.611 71.087 71.565 2 Austria/schilling 11.686 10.992 11.639 11.958 12.025 12.252 12.200 11.896 11.948 3 Belgium/franc 34.195 32.148 34.581 36.227 35.694 36.206 35.768 34.862 34.979 4 Canada/dollar 1.1460 1.2085 1.2902 1.3174 1.3308 1.3173 1.3424 1.3644 1.3830 5 China, P.R./yuan 5.3337 5.5206 5.7795 5.8086 5.8210 8.7219 8.7249 8.7241 8.7251 6 Denmark/krone 6.4038 6.0372 6.4863 6.7667 6.7042 6.7697 6.7668 6.62% 6.6642 7 Finland/markka 4.0521 4.4865 5.7251 5.8143 5.7602 5.7004 5.5930 5.5436 5.4997 8 France/franc 5.6468 5.2935 5.6669 5.9069 5.8477 5.9207 5.8955 5.7647 5.8170 9 Germany/deutsche mark 1.6610 1.5618 1.6545 1.7005 1.7105 1.7426 1.7355 1.6909 1.6984 10 Greece/drachma 182.63 190.81 229.64 243.43 245.51 250.29 250.48 246.71 249.08 11 Hong Kong/dollar 7.7712 7.7402 7.7357 7.7272 7.7245 7.7251 7.7353 7.7268 7.7269 12 India/rupee 22.712 28.156 31.291 31.434 31.440 31.440 31.449 31.415 31.391 13 Ireland/pound2 161.39 170.42 146.47 140.31 141.82 143.03 141.91 143.40 143.42 14 Italy/lira 1,241.28 1,232.17 1,573.41 1,666.31 1,687.17 1,699.45 1,685.96 1,666.63 1,626.07 15 Japan/yen 134.59 126.78 111.08 107.88 109.91 111.44 106.30 105.10 103.48 16 Malaysia/ringgit 2.7503 2.5463 2.5738 2.5548 2.5737 2.7160 2.7624 2.7171 2.6887 17 Netherlands/guilder 1.8720 1.7587 1.8585 1.9084 1.9162 1.9516 1.9464 1.9006 1.9074 18 New Zealand/dollar2 57.832 53.792 54.127 54.787 55.631 56.263 57.436 57.093 56.908 19 Norway/krone 6.4912 6.2142 7.0979 7.3882 7.4211 7.5064 7.4885 7.3419 7.3680 20 Portugal/escudo 144.77 135.07 161.08 173.93 174.58 176.04 175.15 174.00 173.54 21 Singapore/dollar 1.7283 1.6294 1.6158 1.5950 1.5975 1.6037 1.5873 1.5819 1.5628 22 South Africa/rand 2.7633 2.8524 3.2729 3.3680 3.3788 3.4107 3.4520 3.4586 3.5789 23 South Korea/won 736.73 784.58 805.75 809.79 812.57 813.55 812.24 810.69 811.71 24 Spain/peseta 104.01 102.38 127.48 137.27 140.42 143.04 141.08 138.78 138.14 25 Sri Lanka/rupee 41.200 44.013 48.205 49.187 49.322 49.460 49.113 48.931 48.925 26 Sweden/krona 6.0521 5.8258 7.7956 8.2660 8.3501 8.1184 7.9869 7.9156 7.8850 27 Switzerland/franc 1.4356 1.4064 1.4781 1.4969 1.4634 1.4716 1.4565 1.4292 1.4383 28 Taiwan/dollar 26.759 25.160 26.416 26.884 26.768 26.495 26.440 26.414 26.389 29 Thailand/baht 25.528 25.411 25.333 25.382 25.460 25.543 25.382 25.325 25.268 30 United Kingdom/pound2 176.74 176.63 150.16 148.08 149.13 149.23 147.92 149.19 148.23 MEMO 31 United States/dollar3 89.84 86.61 93.18 95.47 95.73 96.54 95.79 94.35 94.39 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 June 1994 A76 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 Index to Statistical Tables References are to pages A3-A66 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 21,22 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 23 Banks, by classes, 18-22 Turnover, 17 Domestic finance companies, 36 Depository institutions Federal Reserve Banks, 11 Reserve requirements, 9 Financial institutions, 28 Reserves and related items, 4, 5, 6, 13 Foreign banks, U.S. branches and agencies, 23 Deposits (See also specific types) Automobiles Banks, by classes, 4, 18-22, 24 Consumer installment credit, 39 Federal Reserve Banks, 5,11 Production, 47, 48 Interest rates, 16 Turnover, 17 Discount rates at Reserve Banks and at foreign central banks and BANKERS acceptances, 10, 22, 26 foreign countries (See Interest rates) Bankers balances, 18-22. (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Bonds (See also U.S. government securities) Dividends, corporate, 35 New issues, 35 Rates, 26 EMPLOYMENT, 45 Branch banks, 23 Eurodollars, 26 Business activity, nonfinancial, 45 Business expenditures on new plant and equipment, 35 FARM mortgage loans, 38 Business loans (See Commercial and industrial loans) Federal agency obligations, 5, 10, 11, 12, 31, 32 Federal credit agencies, 33 CAPACITY utilization, 46 Federal finance Capital accounts Debt subject to statutory limitation, and types and ownership Federal Reserve Banks, 11 of gross debt, 30 Central banks, discount rates, 65 Receipts and outlays, 28, 29 Certificates of deposit, 26 Treasury financing of surplus, or deficit, 28 Commercial and industrial loans Treasury operating balance, 28 Commercial banks, 21 Federal Financing Bank, 28, 33 Weekly reporting banks, 21-23 Federal funds, 7, 19, 21, 22, 23, 26, 28 Commercial banks Federal Home Loan Banks, 33 Assets and liabilities, 18-22 Federal Home Loan Mortgage Corporation, 33, 37, 38 Commercial and industrial loans, 18-23 Federal Housing Administration, 33, 37, 38 Consumer loans held, by type and terms, 39 Federal Land Banks, 38 Deposit interest rates of insured, 16 Federal National Mortgage Association, 33, 37, 38 Loans sold outright, 21 Federal Reserve Banks Real estate mortgages held, by holder and Condition statement, 11 property, 38 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 Assets and liabilities, 36 Consumption expenditures, 52, 53 Business credit, 36 Corporations Loans, 39 Nonfinancial, assets and liabilities, 35 Paper, 24, 26 Profits and their distribution, 35 Financial institutions, loans to, 21, 22, 23 Security issues, 34, 65 Float, 51 Cost of living (See Consumer prices) Flow of funds, 40,42, 43, 44 Credit unions, 39 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 5, 14 agencies, 22, 23 Customer credit, stock market, 27 Foreign currency operations, 11 Foreign deposits in U.S. banks, 5, 11, 21, 22 Foreign exchange rates, 66 DEBITS to deposit accounts, 17 Foreign trade, 54 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 55, 58, 59, 60, 62 Banks, by classes, 18-23 Liabilities to, 22, 54, 55, 56, 61, 63, 64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 GOLD REAL estate loans Certificate account, 11 Banks, by classes, 21, 22, 38 Stock, 5, 54 Terms, yields, and activity, 37 Government National Mortgage Association, 33, 37, 38 Type of holder and property mortgaged, 38 Gross domestic product, 51 Repurchase agreements, 7, 21-23 Reserve requirements, 9 HOUSING, new and existing units, 49 Reserves Commercial banks, 18 INCOME, personal and national, 45, 51,52 Depository institutions, 4, 5, 6, 13 Industrial production, 45, 47 Federal Reserve Banks, 11 Installment loans, 39 U.S. reserve assets, 54 Insurance companies, 30, 38 Residential mortgage loans, 37 Interest rates Retail credit and retail sales, 39,40,45 Bonds, 26 Consumer installment credit, 39 SAVING Deposits, 16 Flow of funds, 40, 42, 43, 44 Federal Reserve Banks, 8 National income accounts, 51 Foreign central banks and foreign countries, 66 Savings and loan associations, 38, 39,40 Money and capital markets, 26 Savings banks, 38, 39 Mortgages, 37 Savings deposits (See Time and savings deposits) Prime rate, 25 Securities {See also specific types) International capital transactions of United States, 53-65 Federal and federally sponsored credit agencies, 33 International organizations, 55,56, 58, 61, 62 Foreign transactions, 63 Inventories, 51 New issues, 34 Investment companies, issues and assets, 35 Prices, 27 Investments (See also specific types) Special drawing rights, 5, 11, 53, 54 Banks, by classes, 18-23 State and local governments Commercial banks, 4, 18-23 Deposits, 21, 22 Federal Reserve Banks, 11, 12 Holdings of U.S. government securities, 30 Financial institutions, 38 New security issues, 34 Ownership of securities issued by, 21, 22 LABOR force, 45 Rates on securities, 26 Life insurance companies (See Insurance companies) Stock market, selected statistics, 27 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 18—23 New issues, 34 Commercial banks, 4, 18-23 Prices, 27 Federal Reserve Banks, 5, 6, 8, 11, 12 Financial institutions, 38 Student Loan Marketing Association, 33 Insured or guaranteed by United States, 37, 38 TAX receipts, federal, 29 MANUFACTURING Thrift institutions, 4. (See also Credit unions and Savings and Capacity utilization, 46 loan associations) Production, 46, 48 Time and savings deposits, 4, 14, 16, 18-23 Margin requirements, 27 Trade, foreign, 54 Member banks (See also Depository institutions) Treasury cash, Treasury currency, 5 Federal funds and repurchase agreements, 7 Treasury deposits, 5, 11, 28 Reserve requirements, 9 Treasury operating balance, 28 Mining production, 48 UNEMPLOYMENT, 45 Mobile homes shipped, 49 U.S. government balances Monetary and credit aggregates, 4, 13 Commercial bank holdings, 18-23 Money and capital market rates, 26 Treasury deposits at Reserve Banks, 5, 11, 28 Money stock measures and components, 4, 14 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 18-23, 30 Mutual funds, 35 Dealer transactions, positions, and financing, 32 Mutual savings banks (See Thrift institutions) Federal Reserve Bank holdings, 5, 11, 12, 30 Foreign and international holdings and NATIONAL defense outlays, 29 transactions, 11, 30, 64 National income, 51 Open market transactions, 10 Outstanding, by type and holder, 28, 30 OPEN market transactions, 10 Rates, 25 U.S. international transactions, 53-66 PERSONAL income, 52 Utilities, production, 48 Prices Consumer and producer, 45, 50 VETERANS Administration, 37, 38 Stock market, 27 Prime rate, 25 WEEKLY reporting banks, 22-24 Producer prices, 45, 50 Wholesale (producer) prices, 45, 50 Production, 45, 47 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 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, Deputy Congressional Liaison 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 MARTHA BETHEA, Deputy Associate Director WILLIAM W. WILES, Secretary PETER A. TINSLEY, Deputy Associate Director JENNIFER J. JOHNSON, Associate Secretary MYRON L. KWAST, Assistant Director BARBARA R. LOWREY, Associate Secretary PATRICK M. PARKINSON, Assistant Director DIVISION OF BANKING MARTHA S. SCANLON, Assistant Director JOYCE K. ZICKLER, Assistant Director SUPERVISION AND REGULATION JOHN J. MINGO, Senior Adviser RICHARD SPILLENKOTHEN, Director LEVON H. GARABEDIAN, Assistant Director STEPHEN C. SCHEMERING, Deputy Director (Administration) DON E. KLINE, Associate Director WILLIAM A. RYBACK, Associate Director DIVISION OF MONETARY AFFAIRS FREDERICK M. STRUBLE, Associate Director DONALD L. KOHN, Director HERBERT A. BIERN, Deputy Associate Director DAVID E. LINDSEY, Deputy Director ROGER T. COLE, Deputy Associate Director BRIAN F. MADIGAN, Associate Director JAMES I. GARNER, Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director HOWARD A. AMER, Assistant Director VINCENT REINHART, Assistant Director GERALD A. EDWARDS, JR., Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board JAMES D. GOETZINGER, Assistant Director STEPHEN M. HOFFMAN, JR., Assistant Director DIVISION OF CONSUMER LAURA M. HOMER, Assistant Director AND COMMUNITY AFFAIRS JAMES V. HOUPT, Assistant Director JACK P. JENNINGS, Assistant Director GRIFFITH L. GARWOOD, Director MICHAEL G. MARTINSON, Assistant Director GLENN E. LONEY, Associate Director RHOGER H PUGH, Assistant Director DOLORES S. SMITH, Associate Director SIDNEY M. SUSSAN, Assistant Director MAUREEN P. ENGLISH, Assistant Director MOLLY S. WASSOM, Assistant Director IRENE SHAWN MCNULTY, Assistant Director WILLIAM SCHNEIDER, Project Director, National Information Center Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 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 JEFFREY C. MARQUARDT, Assistant Director DAVID L. SHANNON, Director JOHN H. PARRISH, Assistant Director JOHN R. WEIS, Associate Director LOUISE L. ROSEMAN, Assistant Director ANTHONY V. DIGIOIA, Assistant Director FLORENCE M. YOUNG, Assistant Director JOSEPH H. HAYES, JR., Assistant Director FRED HOROWITZ, Assistant Director OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE CONTROLLER BRENT L. BOWEN, Inspector General DONALD L. ROBINSON, Assistant Inspector General GEORGE E. LIVINGSTON, Controller 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 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

72 Federal Reserve Bulletin • June 1994 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman J. ALFRED BROADDUS, JR. EDWARD W. KELLEY, JR. SUSAN M. PHILLIPS ROBERT P. FORRESTAL JOHN P. LAWARE ROBERT T. PARRY JERRY L. JORDAN LAWRENCE B. LINDSEY ALTERNATE MEMBERS THOMAS M. HOENIG THOMAS C. MELZER 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

A73 CONSUMER ADVISORY COUNCIL JEAN POGGE, Chicago, Illinois, Chairman JAMES L. WEST, Tijeras, New Mexico, Vice Chairman BARRY A. ABBOTT, San Francisco, California RONALD HOMER, Boston, Massachusetts JOHN R. ADAMS, Philadelphia, Pennsylvania THOMAS L. HOUSTON, Dallas, Texas JOHN A. BAKER, Atlanta, Georgia KATHARINE W. MCKEE, Durham, North Carolina MULUGETTA BIRRU, Pittsburgh, Pennsylvania EDMUND MIERZWINSKI, Washington, D.C. DOUGLAS D. BLANKE, St. Paul, Minnesota ANNE B. SHLAY, Philadelphia, Pennsylvania GENEVIEVE BROOKS, Bronx, New York JOHN V. SKINNER, Irving, Texas CATHY CLOUD, Washington, D.C. REGINALD J. SMITH, Kansas City, Missouri ALVIN J. COWANS, Orlando, Florida LOWELL N. SWANSON, Portland, Oregon MICHAEL D. EDWARDS, Yelm, Washington JOHN E. TAYLOR, Washington, D.C. 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 GARY S. HATTEM, New York, New York 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

A74 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 or may be ordered $75.00 per year. via Mastercard or Visa. Payment from foreign residents should Securities Credit Transactions Handbook. $75.00 per year. be drawn on a U.S. bank. 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, THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTIand Mexico. Elsewhere, $35.00 per year or $3.00 each. ANNUAL STATISTICAL DIGEST: period covered, release date, COUNTRY MODEL, May 1984. 590 pp. $14.50 each. WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. number of pages, and price. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 1981 October 1982 239 pp. $ 6.50 440 pp. $9.00 each. 1982 December 1983 266 pp. $ 7.50 FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1983 October 1984 264 pp. $11.50 December 1986. 264 pp. $10.00 each. 1984 October 1985 254 pp. $12.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1985 October 1986 231 pp. $15.00 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 CONSUMER EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 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

A75 STAFF STUDIES: Only Summaries Printed in the 156. INTERNATIONAL TRENDS FOR US. 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 THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. of general interest. Requests to obtain single copies of the full 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, Jeff Stehm, and Mary A REEXAMINATION AND AN APPLICATION, by John T. Ann Taylor. March 1992. 37 pp. Rose and John D. Wolken. May 1986. 13 pp. 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING James T. Fergus and John L. Goodman, Jr. July 1993. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice 20 pp. P. White, Paul F. O'Brien, and Mary M. McLaughlin. 165. THE DEMAND FOR TRADE CREDIT: AN INVESTIGATION OF January 1987. 30 pp. MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES, 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A by Gregory E. Elliehausen and John D. Wolken. Septem- REVIEW OF THE LITERATURE, by Mark J. Warshawsky. ber 1993. 18 pp. April 1987. 18 pp. 166. THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET, 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and by Mark Carey, Stephen Prowse, John Rea, and Gregory Alice P. White. September 1987. 14 pp. Udell. January 1994. Ill pp. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, by Glenn B. Canner and James T. Fergus. October 1987. REPRINTS OF BULLETIN ARTICLES 26 pp. A limited number of reprints of Bulletin articles are available. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. One reprint of an article will be sent on request to Publications Warshawsky. November 1987. 25 pp. Services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (PAYMENT MUST ACCOMPANY REQUESTS) Annual Approximate Date of period to which data Weekly Releases1 rate release days2 refer • Aggregate Reserves of Depository Institutions and $15.00 Thursday Week ended previous the Monetary Base. H.3 (502) [1.20] Wednesday • Actions of the Board: Applications and Reports $35.00 Friday Week ended previous Saturday Received. H.2 (501) • Assets and Liabilities of Commercial Banks $30.00 Friday Week ended previous in the United States. H.8 (510) Wednesday • Factors Affecting Reserves of Depository $15.00 Thursday Week ended previous Institutions and Condition Statement of Federal Wednesday Reserve Banks. H.4.1 (503) [1.11] • Foreign Exchange Rates. H.10 (512) [3.28] $15.00 Monday Week ended previous Friday • Money Stock, Liquid Assets, and Debt Measures. $35.00 Thursday Week ended Monday of H.6 (508) [1.21] previous week • Selected Borrowings in Immediately Available $15.00 Wednesday Week ended Thursday of Funds of Large Commercial Banks. H.5 (507) previous week [1.13] • Selected Interest Rates. H.15 (519) [1.35] $15.00 Monday Week ended previous Saturday • Weekly Consolidated Condition Report of Large $15.00 Friday Wednesday, one week earlier Commercial Banks, and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.30] Monthly Releases1 • Consumer Installment Credit. G. 19 (421) [1.55, $ 5.00 Fifth working day of Second month previous 1.56] month • Debits and Deposit Turnover at Commercial Banks. $ 5.00 Twelfth of month Previous month G.6 (406) [1.22] • Finance Companies. G.20 (422) [1.51, 1.52] $ 5.00 Fifth working day of Second month previous month • Foreign Exchange Rates. G.5 (405) [3.28] $ 5.00 First of month Previous month • Industrial Production and Capacity Utilization. G.17 $15.00 Midmonth Previous month (419) [2.12, 2.13] • Research Library—Recent Acquisitions. G.15 (417) Free of First of month Previous month charge • Selected Interest Rates. G.13 (415) [1.35] $ 5.00 First Tuesday of Previous month month 1. The data in some releases are also reported in the Bulletin statistical appendix, and the Bulletin table numbers are shown in brackets. 2. Please note that for some releases there is normally a certain variability in the release date because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 Annual Approximate Date of period to which data Quarterly Releases1 rate release days 2 refer • Agricultural Finance Databook. E. 15 (125) End of March, January, April, July, and $ 5.00 June, September, October and December • Country Exposure Lending Survey. E.16 (126) January, April, $ 5.00 Previous quarter July, and October • Row of Funds Accounts: Seasonally Adjusted 23rd of February, $25.00 Previous quarter and Unadjusted. Z.l (780) [1.57, 1.58] May, August, and November • Flow of Funds Summary Statistics. Z.7 (788) 15 th of February, $ 5.00 Previous quarter [1.59, 1.60] May, August, and November • Geographical Distribution of Assets and Liabilities 15th of March, Previous quarter $ 5.00 of Major Foreign Branches of U.S. Banks. E.l 1 June, September, (121) and December • Survey of Terms of Bank Lending to Business. E.2 Midmonth of February, May, August, and $ 5.00 (111) [4.23] March, June, November September, and December • List of OTC Margin Stocks. E.7 (117) Free of January, April, February, May, August, and charge July, and November October Semiannual Releases • Balance Sheets for the U.S. Economy. C.9 (108) $5.00 October and April Previous year • Report on the Terms of Credit Card Plans. E.5 $ 5.00 March and August January and June (115) Annual Releases • Aggregate Summaries of Annual Surveys of $ 5.00 February End of previous June Securities Credit Extension. C.2 (101) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 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

A79 1-A 2-B 3-C 4-D Pittsburgh / MAH Buffalo • • \ CT V NJ NY B BOSTON NEW YORK PHILADELPHIA RICHMOND 6-F 7-G 8-H • Nashville JV—- Birmingham MO x ® • ( GA Louisville I MS Detroit • 'TN LA • 1 Jacksonville • Memphis NewOrl ;ans y„ Miami ATLANTA CHICAGO ST. LOUIS 9-1 MINNEAPOLIS 10-J wv 12-L CO OOmmaahhaa** VV JJ MMOO ALASKA Denver KKSS NM H OOkkllaahhoommaa CCiittyy •• KANSAS CITY 11-K DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Jerome H. Grossman Temporarily Vacant 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 Fred R. Herr1 Jacksonville 32231 Samuel H. Vickers James D. Hawkins1 Miami 33152 Dorothy C. Weaver James T. Curry III Nashville 37203 Paula Lovell Melvyn K. Purcell New Orleans 70161 Jo Ann Slaydon Robert J. Musso CHICAGO* 60690 Richard G. Cline Silas Keehn Robert M. Healey William C. Conrad Detroit 48231 J. Michael Moore Roby L. Sloan1 ST. LOUIS 63166 Robert H. Quenon Thomas C. Melzer John F. McDonnell James R. Bowen Little Rock 72203 Robert D. Nabholz, Jr. Karl W. Ashman Louisville 40232 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

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

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory of marginable OTC stocks and its list of foreign functions, the Board publishes the Federal Reserve margin stocks. Regulatory Service, a 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

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 !o Business A Consumer's Credit Guide to for Women, Mortgage Minorities, and Lock-Ins Small Businesses Consumer Handbook to Credit Protection L Laws Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis