Federal Reserve Bulletin, 1995-01

VOLUME 81 • NUMBER 1 • JANUARY 1995 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 1 FIMS: A NEW MONITORING SYSTEM FOR Availability of 1995 fee schedules for services BANKING INSTITUTIONS provided by the Federal Reserve Banks. In 1993, the Federal Reserve set into operation Increases in transaction accounts covered by the Financial Institutions Monitoring System to reserve requirements, reservable liabilities, and identify financially troubled banking institu- cutoff levels for deposit reporting. tions. This article gives the background of FIMS, describes the new off-site monitoring Data on daylight overdrafts. system, and explains how it improves on previ- Issuance of guidelines related to real estate ous systems. appraisals. Adoption of interim rule to amend Regula- 16 INDUSTRIAL PRODUCTION AND CAPACITY tion E. UTILIZATION: A REVISION The Federal Reserve index of industrial produc- Proposal to change Regulation Z to require new tion (IP) and the related measures of capacity disclosures for reverse mortgages as set forth in and utilization have been revised for recent the Home Ownership and Equity Protection years. The incorporation of preliminary data Act of 1994. from the 1992 Census of Manufactures generally results in upward revisions for 1992. However, the introduction of 1992 value-added 33 MINUTES OF THE FEDERAL OPEN weights beginning with January 1992 reduces MARKET COMMITTEE MEETING the weight of the fast-growing computer industry in total IP by half and thereby retards the At its meeting on September 27, 1994, the subsequent growth in IP. For the third quarter Committee adopted a directive that called for of 1994, the revisions to the indexes of total maintaining the existing degree of pressure industrial production and capacity as well as on reserve positions and that included a bias the resulting utilization rate are all relatively toward the possible firming of reserve condismall. tions during the intermeeting period. The directive indicated that, in the context of the Committee's long-run objectives for price 27 INDUSTRIAL PRODUCTION AND stability and sustainable economic growth, and CAPACITY UTILIZATION giving careful consideration to economic, FOR NOVEMBER 1994 financial, and monetary developments, some- Industrial production rose 0.5 percent in what greater reserve restraint would, or slightly November, to 120.2 percent of its 1987 aver- lesser reserve restraint might, be acceptable age, after a similar gain in October. The sub- during the intermeeting period. stantial growth in output boosted capacity utilization to 84.7 percent, its highest level since April 1989. 41 LEGAL DEVELOPMENTS Various bank holding company, bank service 30 ANNOUNCEMENTS corporation, and bank merger orders; and pend- Change in the discount rate. ing cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 FINANCIAL AND BUSINESS STATISTICS A70 BOARD OF GOVERNORS AND STAFF These tables reflect data available as of November 28, 1994. All FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A3 GUIDE TO TABULAR PRESENTATION A74 FEDERAL RESERVE BOARD A4 Domestic Financial Statistics PUBLICATIONS A44 Domestic Nonfinancial Statistics A53 International Statistics A76 MAPS OF THE FEDERAL RESERVE A67 GUIDE TO STATISTICAL RELEASES AND SYSTEM SPECIAL TABLES A78 FEDERAL RESERVE BANKS, BRANCHES, A68 INDEX TO STATISTICAL TABLES AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIMS: A New Monitoring System for Banking Institutions Rebel A. Cole, of the Board's Division of Research banks is the Office of the Comptroller of the Curand Statistics; Barbara G. Cornyn, of the Board's rency, whereas the responsibility for the supervi- Division of Banking Supervision and Regulation; sion and regulation of state-chartered banks is and Jeffery W. Gunther, of the Federal Reserve shared by the Federal Reserve, the Federal Deposit Bank of Dallas's Financial Industry Studies Insurance Corporation (FDIC), and the fifty state Department, prepared this article. banking agencies. The primary supervisor and regulator of bank holding companies is the Federal One of the primary responsibilities of bank regula- Reserve. Depending upon their activities, bank tory agencies is to minimize the financial loss to holding companies may also be subject to regulathe Bank Insurance Fund that results from the tion by other government agencies, including the failure of insured depository institutions. To dis- Securities and Exchange Commission and the charge this responsibility, bank regulators evaluate Office of Thrift Supervision. the financial performance and condition of deposi- Under the Federal Deposit Insurance Corporatory institutions and initiate prompt corrective tion Improvement Act of 1991 (FDICIA), the bank actions when they find signs of distress. In the regulators generally must examine all banks on-site evaluation, regulators use a combination of on-site at least once each year; before FDICIA, banks were examinations and off-site monitoring systems. examined less frequently, except for the state- In 1993, the Federal Reserve instituted the Finan- chartered banks regulated by the Federal Reserve, cial Institutions Monitoring System (FIMS), which which were in general subject to annual examinais significantly more accurate than previous off-site tions. FDICIA does not require annual inspections monitoring systems in identifying financially of bank holding companies. According to Federal troubled banking institutions. This article gives the Reserve policy, bank holding companies that are in background of FIMS, describes the new system, sound financial condition are subject to less freand explains how it improves on previous systems. quent on-site inspections than are state member banks. During an on-site examination, regulators visit BACKGROUND an institution's offices to evaluate the institution's financial soundness and compliance with laws and As a result of the National Bank Acts of 1863 and regulatory policies, to assess the quality of the 1864, the United States has a dual banking system institution's management team, and to evaluate the in which some banks are federally chartered and institution's systems of internal control.1 After the some are state chartered. The primary bank super- examination, regulators assign the institution a visor and regulator of federally chartered (national) rating that summarizes its financial condition and performance. The rating is known by the acronym NOTE. This article summarizes the work of a Systemwide Surveillance Task Force composed of economists, examiners, and financial analysts from the Reserve Banks of New York, Philadel- 1. The American Institute of Certified Public Accountants Comphia, Cleveland, Atlanta, Chicago, Minneapolis, Kansas City, mittee on Working Procedures defines internal control as follows: Dallas, and San Francisco as well as from the Board of Governors "Internal control comprises the plan of organization and all of the in Washington. We are especially grateful to David Barker and coordinate methods and measures adopted within a business to Dale Harrington, who contributed extensively to the project. We safeguard its assets, check the accuracy and reliability of its also thank David Jones, Myron Kwast, and Sally Davies, who accounting data, promote operational efficiency, and encourage provided comments on earlier drafts. adherence to subscribed managerial policies." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1995 The Uniform Financial Institutions Rating System In 1979, federal banking regulatory agencies adopted the 4—marginal performance that is significantly below Uniform Financial Institutions Rating System as a com- average mon way to rate the financial condition of federally 5—unsatisfactory performance that is critically defiinsured depository institutions. The system helps identify cient and in need of immediate remedial action. institutions whose condition warrants special supervisory attention. Under this system, each institution receives a Once the five component ratings have been deteruniform, composite supervisory rating based upon an mined, the composite CAMEL or BOPEC rating is evaluation of financial performance, condition, operating assigned as a summary measure and used by bank regulasoundness, and regulatory compliance. tors as the primary indicator of financial condition. The composite rating of a bank is based upon an Composite ratings are assigned on a scale of 1 to 5; on-site evaluation of five critical dimensions of 1 indicates that an institution is of least supervisory performance—capital adequacy, asset quality, manage- concern, and 5 indicates that an institution is of most ment, earnings, and liquidity; hence the acronym supervisory concern. The five composite rating levels are CAMEL, which has become the popularized name for set forth as follows in the Commercial Bank Examination this rating system. Manual produced by the Board of Governors of the A similar system, known as BOPEC, is used to deter- Federal Reserve System: mine the composite rating for a bank holding company. In the BOPEC system, the composite rating is based 1—an institution that is basically sound in every upon an evaluation of five elements of the bank holding respect company—the bank subsidiaries, other (nonbank) subsid- 2—an institution that is fundamentally sound, but with iaries, the parent company, consolidated earnings, and modest weaknesses consolidated capital adequacy. 3—an institution with financial, operational, or com- In both the CAMEL and BOPEC systems, each com- pliance weaknesses that give cause for supervisory ponent is assigned a rating on a scale of 1 to 5 in concern descending order of performance: 4—an institution with serious financial weaknesses that could impair future viability 1—strong performance 5—an institution with critical financial weaknesses 2—satisfactory performance that render the probability of failure extremely high in the 3—performance that is flawed to some degree near term. CAMEL, which refers to the five components of significantly reduced the cost of analyzing informathe rating system—capital, asset quality, manage- tion. In addition, a precipitous rise in the 1980s in ment, earnings, and liquidity (see box "The Uni- the number of bank failures made clear the need for form Financial Institutions Rating System"). auxiliary means of supervising banks (see box Between on-site examinations, regulators moni- "The Pattern of Bank Failures since 1980"). tor financial institutions off site using computerbased systems. These monitoring systems typically analyze the financial information that each institu- BANK REGULATORY SURVEILLANCE SYSTEMS tion must report to regulators quarterly. Two circumstances in the 1970s prompted the. Over the past two decades, various monitoring development of such monitoring systems. First, the systems have been developed, but their objectives large number of banking organizations in the have generally been the same—to identify develop- United States—more than 14,000 banks and 1,500 ing financial problems at banking institutions bank holding companies as of year-end 1975—and between examinations in order to set priorities for the growing complexity of their financial reports the allocation of scarce examination and other increased the difficulty of systematically analyzing supervisory resources. Output from the systems is each institution. Second, technological advances in used to accelerate the on-site examinations of instithe fields of computer science and data processing tutions showing financial deterioration; to identify Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIMS: A New Monitoring System for Banking Institutions 3 banking organization.2 To improve this monitoring The Pattern of Bank Failures since 1980 effort, the Federal Reserve System in the mid- 1980s adopted the Uniform Bank Surveillance From the mid-1930s until the early 1980s, relatively Screen (UBSS) as its primary surveillance system. few banks failed, and losses to the deposit insurance With some changes, the UBSS remained in service fund were minimal. No more than 20 banks failed in until 1993, when it was replaced by FIMS. The any year. The Depository Institutions Deregulation and UBSS used financial data from regulatory reports Monetary Control Act of 1980 (DIDMCA) set in to identify individual institutions whose financial motion the removal of ceilings on the interest rates that ratios had deteriorated relative to the averages of institutions could pay on savings and time accounts their respective "peer groups," institutions with and removed or weakened barriers separating commercial banks, thrift institutions, and credit unions. With similar sizes of assets.3 The effectiveness of this increased competition, depository institutions weak- system, however, was limited by certain methodened by the deep recession of 1981-82 failed at ological weaknesses. increasingly higher rates (chart). In 1982, 42 banks The UBSS was structured around six financial failed. In each successive year, bank failures rose until ratios computed from quarterly Call Report data. 1988, when they peaked at 221. Since then, the num- For both banks and bank holding companies, the ber of failures has declined each year; however, it first four ratios—tier 1 capital, net income, net remained in triple digits through 1992, when 122 banks liquid assets, and the sum of past due and nonacfailed. In 1993, bank failures fell to only 41. crual loans (each expressed as a percentage of total From 1982 through 1992, a total of 1,442 banks assets)—were the components of a primary surveilfailed—more than 10 percent of all banks in the United lance screen.4 (A surveillance screen uses a set of States at the beginning of that period. financial ratio values to identify, or screen, institutions whose condition warrants special supervisory Failures of FDIC-insured banks, 1980-93 attention.) Within each peer group, the four finan- Number cial ratios for each institution were sorted from best to worst, and percentile rankings relative to the peer group were calculated. The four ranks were summed to form a bank's composite score, with each rank receiving equal weight in the summation. The resulting composite scores were used to calcu- 2. For a description of the bank surveillance systems used by regulators during the 1970s and early 1980s, see Barron H. Putnam, 1980 1982 1984 1986 1988 1990 1992 "Early Warning Systems and Financial Analysis in Bank Monitoring: Concepts of Financial Monitoring," Federal Reserve Bank of Atlanta, Economic Review (November 1983), pp. 6-13. 3. The UBSS defined nine peer groups based upon bank asset the areas of most supervisory concern in those size: $10 million or less, $10 million-$25 million, $25 million- $50 million, $50 million-$100 million, $100 million-$300 million, institutions scheduled for examination; and to allo- $300 million-$l billion, $1 billion-$3 billion, $3 billioncate the more experienced examiners to troubled $10 billion, and greater than $10 billion. A tenth peer group was institutions. defined as banks chartered during the previous five years. 4. For banks, asset growth during the previous four quarters and interest paid on volatile liabilities as a percentage of average volatile liabilities were used as supplemental surveillance screens. For bank holding companies, parent company cash flow and double Uniform Bank Surveillance Screen leverage were used as supplemental surveillance screens. As with the four primary ratios, each supplemental screening ratio was converted to a percentile ranking, and institutions with the highest Since the mid-1970s, the Federal Reserve System rankings were placed on the exception list for additional off-site has monitored the financial performance and condi- analysis and, potentially, for supervisory action. For details on tion of banking organizations by screening finan- capital standards, see Allan D. Brunner and William B. English, "Profits and Balance Sheet Developments at U.S. Commercial cial ratios calculated from the Reports of Condition Banks in 1992," Federal Reserve Bulletin, vol. 79 (July 1993), and Income (Call Report) filed quarterly by each pp. 661-62. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1995 late composite percentile rankings within each peer tile ranking, CAEL calculates off-site surrogates group. These composite percentile rankings served for CAMEL ratings. as the basis of the primary surveillance screen. CAEL ratings are calculated in a manner similar Institutions with the highest composite percentile to that by which the surveillance scores were calcurankings were placed on an "exception list." Insti- lated in the UBSS, although the calculation of tutions on this list were subjected to more in-depth, CAEL ratings is considerably more complex and off-site analysis by Federal Reserve Bank staff. involves many more financial ratios. Like the The UBSS was supplemented by the quarterly UBSS, the CAEL system divides banks into peer Uniform Bank Performance Report and the Bank groups based upon asset size and calculates percen- Holding Company Performance Report, both from tile rankings for four sets of financial ratios that the Federal Financial Institutions Examination correspond to the four component ratings. Each Council. These reports are analytical tools created of the four component ratings is calculated as a for bank and bank holding company supervisory weighted average of the corresponding set of finanpersonnel. In a concise format, they show the effect cial ratios. The composite CAEL rating is calcuof management decisions and economic conditions lated as a weighted average of the four component on a banking organization's financial performance ratings. Both the ratios used to calculate the ratings and balance sheet composition. The data on perfor- and the weights associated with each ratio are mance and balance sheet composition contained determined by a panel of bank examiners. CAEL in the reports can aid in decisions about capital remains in place today as the FDIC's primary offadequacy, asset quality, earnings, liquidity, and site surveillance system.5 asset and liability management. Each quarterly report shows financial information for multiple time periods. The financial data are presented in the Limitations of the UBSS and CAEL form of ratios, percentages, and dollar amounts. Each report also shows corresponding average data The UBSS and CAEL use a set of financial ratios for the institution's peer group along with informa- to calculate a composite score with which bank tion identifying how the data ranked the institution regulators can assess the financial condition of a relative to its peers. depository institution between on-site examina- If this off-site analysis led to the conclusion that tions. One limitation of such systems is the subjecthe financial condition of an institution had wors- tive manner in which the ratios were selected. ened significantly since its most recent on-site Regulators selected these ratios from a much larger examination, a suitable supervisory response was set of variables that academic researchers had developed and implemented, including contact with shown to be correlated with an institution's finanthe institution's management to obtain additional cial condition, but the ratios used to calculate the information and acceleration of the institution's surveillance scores were not statistically validated next scheduled on-site examination. as being sufficiently inclusive to produce accurate off-site assessments of risk. In fact, other ratios, when combined with those of these systems, produce superior assessments of risk. CAEL System A related limitation is the manner in which each ratio was weighted. These weights, which were During the mid-1980s, the FDIC developed a sur- fixed across estimation periods, were determined veillance system known as CAEL, which is meth- subjectively rather than by rigorous statistical testodologically similar to the UBSS. The acronym ing. The UBSS applies equal weights to each of the CAEL refers to four CAMEL component ratings four financial ratios used to construct the composite that the system evaluates—capital, asset quality, surveillance score. CAEL applies a system of earnings, and liquidity. The system does not pro- weights determined by a panel of senior examiners. vide a management rating. Like the UBSS, CAEL is based upon quarterly bank Call Report data; but 5. The Office of the Comptroller of the Currency relies upon a whereas the UBSS calculated a composite percen- set of financial ratio screens as its primary surveillance system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIMS: A New Monitoring System for Banking Institutions 5 Even if the selected financial ratios contained all recent relationship between financial ratios derived the information necessary for an accurate assess- from the two most recent quarters of bank Call ment of risk, improper weighting of those ratios Report data and supervisory ratings based upon the would reduce the accuracy of estimation. More- most recent on-site examination. Empirical testing over, even if optimal weights had initially been indicates that using data from the two most recent assigned, the failure to adjust for temporal shifts quarters to estimate the historical relationship would also have reduced estimation accuracy. maximizes the classification accuracy of the rating A third limitation of these systems is the reliance model. upon peer-group analysis. Both systems divide The FIMS risk rank represents an estimate, based banks into peer groups based upon asset size upon a bank's financial condition as measured by because the average values of key financial ratios the most recent Call Report data, of the probability are significantly different for banks of different that a bank will fail during the subsequent two sizes. Without a peer-group analysis, differences in years.6 Like the FIMS rating model, the risk rank the financial ratios associated solely with bank size model is updated quarterly to determine which could be mistakenly interpreted as differences in ratios to include and how to weight these ratios. financial condition. Because performance is mea- But the risk rank model is updated using financial sured relative to that of other banks of similar size, ratios derived from Call Report data from the same however, systemic changes in the performance quarter two years previously and information either of peer groups or of the banking system as a classifying banks as failing or surviving during the whole are not incorporated into the composite sur- intervening period. This procedure enables the risk veillance scores. Hence, if an entire peer group rank model to incorporate change over time and deteriorates, the percentile scores of individual produces a much longer-term assessment of a banks within that peer group may not change, even bank's financial viability than does the FIMS rating though the banks have become riskier. model. With peer group analysis, an additional complication arises when the size of an institution changes in a manner that places it in a larger or smaller peer Estimation Techniques group than it was in during the previous quarter. In such a case, the institution's percentile scores may Both the FIMS rating and risk rank are based upon change significantly, even if its financial condition variables representing categories of financial condihas not changed. tion. The FIMS rating is based upon the composite CAMEL rating, which can take on integer values from 1 to 5; the FIMS risk rank is based upon a FIMS variable that has only two values—0 for failure and 1 for survival. Because such variables represent Addressing the limitations of the previous off-site categories of condition, standard estimation techbank monitoring systems, FIMS provides two niques (such as ordinary-least-squares regression complementary surveillance scores based upon two analysis) do not provide accurate results. To distinct econometric models—the FIMS rating and account for the statistical characteristics of catethe FIMS risk rank. The FIMS rating is an assess- gorical variables, FIMS uses specialized "limited ment of a bank's current condition, whereas the FIMS risk rank is a longer-term assessment of the bank's expected future condition. The FIMS rating represents an estimate, based 6. "Failure" is defined as encompassing not only those instituupon the most recent Call Report data, of what a tions declared equity insolvent by their primary regulator during the two-year period but also those that are classified as "critically bank's CAMEL rating would be if it were assigned undercapitalized" at the end of the period. The latter group is during the current quarter. Because the relationship included to identify institutions for which FDICIA mandates between financial ratios and CAMEL ratings may "prompt corrective action." In general, that legislation requires regulators to close critically undercapitalized institutions within change over time, the FIMS rating model is ninety days. Critical undercapitalization is defined as a ratio of updated each quarter. The updates reflect the most tangible equity to average assets of less than 2 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1995 dependent variable" estimation techniques to pro- tested as explanatory variables. The prior-period duce its two surveillance scores.7 composite rating was included in the model because the proportion of banks for which the CAMEL rating changes from one examination to Explanatory Variables the next is less than one-third. The prior-period management component rating was chosen to aug- In the literature on financial economics, the numer- ment the ability of financial and structure variables ous studies that model the financial condition of to incorporate the management dimension of bank depository institutions show a relatively consistent performance into the FIMS rating. set of variables to be related to bank financial All of the potential explanatory variables except condition.8 These variables, which generally for the prior-period examination rating and the include measures of capital adequacy, asset quality, measures of regional economic conditions can be earnings, and liquidity, form the basis for the off- calculated with bank Call Report data (table 1). site monitoring systems used by both the Federal Income statement variables are based upon data Reserve and the FDIC. from the previous four quarters. For each variable To develop FIMS, staff members of the Federal that is a financial ratio, a four-quarter rate of change Reserve System selected from the financial litera- is included in the FIMS models. These rates of ture and the financial ratios commonly used in change are defined as the difference in the values of examination reports approximately thirty financial the current and year-before values of each ratio's and structure variables that they considered most numerator, divided by the year-before value of likely to be useful in estimating the CAMEL rating assets. and the probability of failure. They tested an addi- From this set of potential explanatory variables tional set of variables measuring regional economic comes a subset of variables that produces the best conditions. For the FIMS rating model, the prior- estimates of the CAMEL ratings. This subset is period composite CAMEL rating and the prior- selected using a step-wise procedure that evaluates period management component rating were also the explanatory power of the entire set of independent variables and sequentially removes from consideration those variables that do not significantly 7. The ordinal-level logistic regression methodology is used to improve estimates of the historical relationship.9 produce the FIMS rating whereas the binary logistic regression methodology—a special case of the more general ordinal-level A similar procedure is employed in selecting the methodology—is used to produce the FIMS risk rank. explanatory variables for estimating the risk rank. Each bank receives a set of five estimates representing the From the large set of potential explanatory variprobabilities that the next composite examination rating will be equal to 1, 2, 3, 4, or 5. The FIMS rating—or estimated CAMEL ables, the subset of variables that produces the best rating—is obtained from this set of estimates as the sum of the five estimate of the probability of failure is chosen. As possible ratings, each weighted by its estimated probability. with the FIMS rating model subset, this subset is Each bank also receives a single estimate representing the probability that the bank will fail within two years. This estimated selected with a step-wise procedure that first evalufailure probability is used to rank banks according to riskiness. ates the explanatory power of the entire set of The statistical underpinnings of these methodologies are described in G.S. Maddala, Limited-Dependent and Qualitative Variables in Econometrics (Cambridge University Press, 1983). 9. To validate this methodology, staff members tested each of See pp. 22-27 for a description of the binary logistic regression the explanatory variables for statistical significance in estimating methodology and pp. 46-49 for the ordinal-level logistic regression the CAMEL rating in each quarter from December 1989 through methodology. March 1992, a total of ten different estimation periods. Empirical 8. For a review of this literature, see Asli Demirguc-Kunt, testing verified that inclusion of variables that are not statistically "Deposit-Institution Failures: A Review of the Empirical Litera- significant often degrades the model's ability to produce accurate ture," Federal Reserve Bank of Cleveland, Economic Review, estimates for banks not included in the sample used to estimate the vol. 25 (Fourth Quarter, 1989), pp. 2-18. Three more recent articles model, that is, "out-of-sample" estimates. Empirical testing also on predicting bank failure are James B. Thomson, "Modeling the has shown that inclusion of variables that consistently are statisti- Bank Regulator's Closure Option: A Two-Step Logit Regression cally significant improves the ability of FIMS to estimate examina- Approach," Journal of Financial Services Research (May 1992), tion ratings out of sample. In the present context, out-of-sample pp. 5-23; Rebel A. Cole and Jeffery W. Gunther, "Separating the estimation uses the relationship between the dependent and Likelihood and Timing of Bank Failure," Journal of Banking and explanatory variables estimated during one period to estimate Finance (forthcoming); and David S. Jones and Kathy Kuester events during the subsequent period. Out-of-sample tests compar- King, "The Implementation of Prompt Corrective Action: An ing predicted and actual outcomes are useful because they most Assessment," Journal of Banking and Finance (forthcoming). closely resemble the manner in which the model is actually used. 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FIMS: A New Monitoring System for Banking Institutions 7 1. Variables for the FIMS rating model not significantly improve estimates of the probability of failure.10 Variable Description Loans past due Loans past due 30-89 days and still accruing 30-89 days interest divided by assets Estimating the Historical Relationship Loans past due Loans past due 90 days or more and still 90 or more days accruing interest divided by assets between Call Report Data Nonaccrual loans Nonaccrual loans divided by assets and CAMEL Ratings Foreclosed real Foreclosed real estate divided by assets estate The directions of the estimated historical relation- Tangible capital Equity less goodwill divided by assets ships between the explanatory variables and the Net income Net income before extraordinary items less CAMEL ratings are shown in table 2. Only varigains or losses on sale of securities divided by assets ables that are statistically significant in each of the Investment Book value of investment securities divided ten quarters are shown. Eleven explanatory varisecurities by assets ables are statistically significant in each period Reserves Allowance for loan and lease loss divided analyzed. Four of these variables relate to asset by assets quality—the ratios to assets of loans past due Jumbo CDs Domestic certificates of deposit (CDs) greater than or equal to $100,000 divided by assets 30-89 days and still accruing interest, of loans past Net liquid assets Net liquid assets divided by assets due 90 or more days and still accruing interest, of UBSS asset growth Percentile ranking score of growth in total nonaccrual loans, and of foreclosed real estate. percentile score assets over the past four quarters based upon the UBSS system Each asset-quality variable is positively related Volatile liability Interest paid on volatile liabilities divided to the numerical CAMEL rating, indicating that expense by average volatile liabilities higher values of these variables are associated with UBSS composite Composite percentile ranking score based worse CAMEL ratings. percentile score upon the UBSS system Net charge-offs Charge-offs less recoveries divided by assets Of the remaining seven variables that are significant in every period tested, three are negatively Brokered deposits Binary variable equal to 1 if the ratio of brokered deposits to total assets is greater than 1 percent and equal to 0 otherwise Noninterest expense Noninterest expense divided by assets 10. This methodology was validated through separate estima- Core deposits Total deposits less domestic CDs equal to or tions using year-end Call Report data from 1984-88 to determine greater than $100,000, brokered domestic failures in the two years subsequent to the Call Report date. deposits less than $100,000, and foreign Out-of-sample estimation accuracy was evaluated for each of these deposits divided by assets five estimations. Insider loans Loans to insiders divided by assets Dividends Dividends divided by assets 2. Effects of explanatory variables on the FIMS rating Age Log of the age of the bank Variable Effect1 Size Log of the current level of assets Provisions Provisions for loan and lease loss divided Loans past due 30-89 days Worse by assets Loans past due 90 or more days Worse C&I loans Commercial and industrial loans divided by assets Nonaccrual loans Worse Commercial real Commercial real estate loans divided Foreclosed real estate Worse estate by assets Consumer loans Loans to individuals divided by assets Tangible capital Better Agricultural loans Loans for agricultural production divided Net income Better by assets Investment securities Better Unemployment Unemployment rate, state level UBSS asset growth percentile score Worse Income per capita Personal income divided by labor force, state level UBSS composite percentile score Worse Permits per capita Housing permits issued divided by labor Prior management rating Worse force, state level Prior composite CAMEL rating Worse independent variables and then sequentially 1. "Worse" indicates that higher values of the variable are associated with worse CAMEL ratings; "better" indicates that higher values of the variable removes from consideration those variables that do are associated with better CAMEL ratings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1995 related to the numerical CAMEL rating—the ratios 3. Effects of explanatory variables on the FIMS to assets of tangible capital, net income less secu- risk rank rity gains and losses, and investment securities— Variable Effect1 indicating that higher values for these variables are associated with better CAMEL ratings. These three Loans past due 30-89 days Higher variables measure the capital, earnings, and liquid- Loans past due 90 or more days Higher ity position of an institution, corresponding to three Nonaccrual loans Higher of the five components of the CAMEL rating Foreclosed real estate Higher system. Tangible capital Lower The remaining four variables significant in every period are positively related to the numerical Net income Lower CAMEL rating. The UBSS asset-growth and com- Reserves Lower posite percentile rankings are consistently positive, Investment securities Lower indicating that higher values of these variables are Jumbo CDs Higher associated with worse CAMEL ratings; also consis- 1. "Higher" indicates that higher values of the variable are associated tently positive are the prior management CAMEL with higher probabilities of failure; "lower" indicates that higher values of component rating and the prior composite CAMEL the variable are associated with lower probabilities of failure rating, indicating that a bank's current rating is a function of its previous ratings. Indeed, a review past due 90 or more days and still accruing interest, of the sample banks' ratings reveals that the exami- of nonaccrual loans, and of foreclosed real estate. nation rating of a bank is the same as its previ- Higher levels of each of these variables are associous rating in more than two-thirds of all cases ated with a greater likelihood of failure (see note 6 analyzed. for definition). Several additional variables are statistically sig- Of the remaining five variables, four are consisnificant in at least one but no more than five of the tently negative—the ratios to assets of tangible ten periods analyzed. Empirical analysis revealed, capital, net income, allowance for loan loss, and however, that inclusion of these additional vari- investment securities—indicating that higher levels ables in the model does not significantly improve of each are associated with a lower likelihood of the accuracy of out-of-sample estimation; in most failure. The coefficient of the final variable—the cases, their inclusion usually degrades such ratio of domestic certificates of deposit greater than accuracy. Of considerable interest is the finding or equal to $100,000 to assets—is positive, indicatthat the regional economic variables tested do not ing that higher levels of this variable are associated significantly improve out-of-sample estimation. with a greater likelihood of failure. This finding is Further analysis indicated that, by themselves, consistent with the financial literature on bank failthese variables have considerable explanatory ure, which provides evidence that high-risk banks power but that this power is attenuated by the use volatile liabilities as a funding mechanism to a inclusion of bank-specific variables in the model. greater extent than other banks and that these funds can be quickly withdrawn as a bank's condition deteriorates, causing liquidity problems. Estimating the Historical Relationship between Call Report Data and Bank Failure ACCURACY OF CLASSIFICATION The directions of the estimated historical relationship between the explanatory variables and the For a surveillance model, the most meaningful incidence of bank failure are shown in table 3. measure of accuracy is the ability to classify insti- Only the nine explanatory variables that are statisti- tutions correctly in a future period rather than the cally significant in each period examined are ability to classify institutions correctly in previous included in the table. Four of these variables relate periods. Therefore, the following procedure was to asset quality—the ratios to assets of loans past used to assess the accuracy of the FIMS models. due 30-89 days and still accruing interest, of loans Parameter estimates were generated by applying Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIMS: A New Monitoring System for Banking Institutions 9 the econometric models to Call Report data from mates based upon the September Call Report data the beginning of a given period and to data from were compared with the actual ratings assigned events (that is, examinations or bank failures) during examinations based on the same data. This occurring during that period. These parameter esti- procedure was repeated for ten different estimation mates were then applied to Call Report data from periods. the beginning of the subsequent period to generate A similar procedure was used to assess the accuclassification for events occurring during that sub- racy of the FIMS risk rank model. For example, sequent period. Finally, these classifications were parameter estimates were generated using data compared with actual events that occured during from the December 1984 Call Report and data the subsequent period. classifying banks as failing during or surviving For example, to assess the accuracy of the FIMS through 1985-86. These parameter estimates were rating model, parameter estimates were generated then applied to December 1986 Call Report data to using data from the March and June Call Report classify banks as failing during or surviving and corresponding examination data from the quar- through 1987-88. Finally, the classifications based ters ending in June and September. These param- upon the December 1986 data were compared with eter estimates were then applied to September Call the actual status of banks at the end of 1988. This Report data to generate estimates of the CAMEL procedure was repeated for five different estimation ratings assigned after examinations based upon the periods. September Call Report data.11 Finally, the esti- 11. Three official dates are associated with an examination: the FIMS Rating Model: date the examination begins, the date the examination ends, and the Estimating the CAMEL Ratings date of the Call Report data used by the examiners in assigning a supervisory rating. For purposes of estimating and evaluating the accuracy of the FIMS rating model, supervisory ratings are identi- The broadest measure of estimation accuracy in fied by the date of the Call Report data; typically, regulators also identify examinations by that date. estimating the CAMEL rating is the ability 4. Accuracy of the FIMS rating and the UBSS composite score in estimating the subsequent-quarter composite CAMEL rating Estimated CAMEL rating Actual 1 2 3 4 5 Total CAMEL rating UBSS FIMS UBSS FIMS UBSS FIMS UBSS FIMS UBSS FIMS 1 Number of banks ... 3,313 4,387 2,295 1,268 48 2 2 0 0 1 5,658 Percentage 58.6 77.5 40.6 22.4 .8 .0 .4 .0 .0 .0 100 2 Number of banks ... 2,212 1,339 9,280 11,039 1,970 1,415 343 21 14 5 13,819 Percentage 16.0 9.7 67.2 79.9 14.3 10.2 2.5 .2 .1 .0 100 3 Number of banks ... 100 23 1,991 1,188 1,707 2,919 762 503 939 20 4,653 Percentage 2.2 .5 42.8 25.5 36.7 62.7 16.4 10.8 2.0 .4 100 4 Number of banks ... 8 0 360 82 732 576 711 1,156 248 245 2,059 Percentage .4 .0 17.5 4.0 35.6 28.0 34.5 56.1 12.0 11.9 100 5 Number of banks ... 2 0 22 6 104 27 255 161 249 438 632 Percentage .3 .0 3.5 1.0 16.5 4.3 40.4 25.5 39.4 69.3 100 Failed Number of banks ... 1 0 4 0 23 1 73 5 161 256 262 Percentage .4 .0 1.5 .0 8.8 .4 27.9 1.9 61.5 97.7 100 Total Number of banks ... 5,636 5,749 13,952 13,583 4,584 4,940 2,146 1,846 765 965 27,083 Percentage 20.8 21.2 51.5 50.2 16.9 18.2 7.9 6.8 2.8 3.6 100 NOTE. Based upon bank Call Report data for each quarter from December 1989 through March 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1995 to classify correctly the actual CAMEL ratings of percentiles are classified as 5-rated; banks in interindividual banks. To assess the accuracy of the vening percentile ranges receive the corresponding FIMS rating model, one can compare its ratings ratings. classifications to those derived from the UBSS— When ratings estimates were assigned in this the surveillance system that FIMS replaced. This manner, the UBSS estimate was equal to the actual comparison measures how often each system's esti- CAMEL rating 56.9 percent of the time. Approximated quarterly CAMEL rating corresponds with mately 19.4 percent of the UBSS rating estimates the actual CAMEL rating assigned by examiners were one level better than the actual CAMEL ratbased upon the same financial data (table 4). ing, whereas 2.3 percent of the rating estimates Table 4 combines classification results from ten were more than one level better than the actual separate quarterly estimates based upon the Call rating. Like FIMS, the UBSS was most accurate in Reports from December 1989 through March 1992. estimating CAMEL ratings of 1 (58.6 percent) and For example, the parameters generated from Call 2 (67.2 percent), but these percentages were much Report data for the second and third quarters of lower than those for FIMS (77.5 percent and 1989 were used to estimate ratings assigned from 79.9 percent, respectively.) The UBSS also was Call Report data for the fourth quarter of 1989; much less accurate than FIMS in identifying banks parameters generated from Call Report data for the that failed during the subsequent quarter. Of the third and fourth quarters of 1989 were used to 262 failing banks in the UBSS sample, only estimate ratings assigned from Call Report data for 61.5 percent received a 5-rating; 27.9 percent the first quarter of 1990; and so forth. A total of received a 4-rating; 8.8 percent received a 3-rating; 27,083 ratings estimates were made. and 1.9 percent received a 1- or 2-rating. The FIMS estimates were identical to the subsequently assigned CAMEL rating for 74.6 percent of examinations. Less than 0.5 percent of the esti- FIMS Rating Model: mates were more than one level better than the Identifying Unsatisfactory Banks actual rating, whereas 12.1 percent of the FIMS estimates were exactly one level better than the Regulators often divide banks into two broad subsequently assigned CAMEL rating. FIMS was groups—those that are satisfactory and those that most accurate in estimating CAMEL ratings of 1 are unsatisfactory. In defining satisfactory banks, (77.5 percent) and 2 (79.9 percent). It also was regulators typically label banks with CAMEL ratextremely accurate in identifying banks that failed ings of 1 or 2 as satisfactory and banks with ratings during the subsequent quarter. Of the 262 failing of 3, 4, and 5 as unsatisfactory. As a second meabanks included in the sample, 97.7 percent received sure of estimation accuracy, this classification a FIMS rating of 5, 1.9 percent received a 4, and scheme was used to analyze the ability of the FIMS the remaining 0.4 percent received a 3; none rating model and the UBSS to classify banks correceived a FIMS rating of 1 or 2. rectly as satisfactory or unsatisfactory. Also in table 4 are the out-of-sample estimation Two types of errors can be made in using an accuracy results for the UBSS. Although the UBSS off-site monitoring system to classify banks in this was not designed specifically to estimate the manner. First, banks that actually are unsatisfactory CAMEL ratings of banks, it did provide a score for can be misclassified by the system as satisfactory. each bank, and this score can be used to estimate Misclassification of unsatisfactory banks as satthe examination rating. If all banks are ranked by isfactory is referred to as a "type-1 error." The their UBSS score, CAMEL rating estimates based second type of error is to misclassify satisfactory on the distribution of actual CAMEL ratings can be banks as unsatisfactory, a "type-2 error." The cost assigned. For example, if 20 percent of the banks in of a type-1 error can be high because it can result in the sample are 1-rated, 50 percent are 2-rated, a bank failure that might have been prevented by 20 percent are 3-rated, 5 percent are 4-rated, and early supervisory intervention. The cost of a type-2 5 percent are 5-rated, then banks with UBSS scores error is usually much lower because it is limited to in the lst-20th percentiles are classified as 1-rated, the sum of the unnecessary expenditure of superand banks with UBSS scores in the 96th-100th visory or examination resources on a healthy bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIMS: A New Monitoring System for Banking Institutions 11 and the costs of examination that are borne by the 1. Comparison of type-1 and type-2 error rates in bank. distinguishing satisfactory and unsatisfactory banks The accuracy of the FIMS rating model and of through FIMS and UBSS the UBSS in identifying satisfactory and unsatisfac- Type-1 error, percent tory banks is compared in table 5. FIMS incorrectly identified approximately 17.1 percent of the unsatisfactory banks as satisfactory (type-1 error) while incorrectly identifying 7.4 percent of the 80 satisfactory banks as unsatisfactory (type-2 error). The UBSS incorrectly identified approximately 32.7 percent of the unsatisfactory banks as satis- — 60 factory (type-1 error) and incorrectly identified 12.2 percent of the satisfactory banks as unsatisfactory (type-2 error). 40 The information in table 5 is based on the assumption that a FIMS rating model score of 2.5 differentiates satisfactory banks (scores of 2.5 or less) from unsatisfactory banks (scores greater than 20 2.5). The ability of the FIMS rating model and the UBSS to identify unsatisfactory banks can be increased by adjusting the cutoff score between • satisfactory and unsatisfactory downward from 2.5. 20 40 60 80 Type-2 error, percent For example, FIMS scores of 2.3 or less could be NOTE. A type-1 error is the classification of an unsatisfactory bank (CAMEL classified as satisfactory, whereas scores greater 3, 4, or 5) as satisfactory; a type-2 error is the classification of a satisfactory than 2.3 could be classified as unsatisfactory. Such bank (CAMEL 1 or 2) as unsatisfactory. an adjustment would increase the number of banks classified correctly as unsatisfactory and decrease Chart 1 demonstrates this trade-off graphically type-1 error, but at the cost of decreasing the num- for the FIMS rating model and for the UBSS. Each ber of satisfactory banks correctly classified and line in the figure starts at the upper left corner increasing type-2 error. A larger percentage of the because labeling no banks as unsatisfactory implies unsatisfactory banks would be identified, but a that all of the truly unsatisfactory banks are mislarger percentage of satisfactory banks would be labeled, so that type-1 error is 100 percent and misclassified. type-2 error is zero. Similarly, each line in chart 1 5. Ability of the FIMS rating and UBSS composite score to correctly identify satisfactory and unsatisfactory banks Estimated CAMEL rating AAAccctttuuuaaalll CCCAAAMMMEEELLL rrraaatttiiinnnggg Unsatisfactory Satisfactory TTToootttaaalll UBSS FIMS UBSS FIMS Unsatisfactory Number 5,118 6,307 2,488 1,299 7,606 Percentage 67.3 82.9 32.7 17.1 100 Satisfactory Number 2,377 1,444 17,100 18,033 19,477 Percentage 12.2 7.4 87.8 92.6 100 Total Number 7,495 7,751 19,588 19,332 27,083 Percentage 28.6 28.6 71.4 71.4 100 NOTE. A "satisfactory bank" is a bank with a composite CAMEL rating calculated using bank Call Report data from each quarter from December of 1 or 2, whereas an "unsatisfactory bank" is a bank with a composite 1989 through March 1992 and upon the composite CAMEL ratings assigned CAMEL rating of 3, 4, or 5. These results are based upon FIMS ratings in each subsequent quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1995 ends at the lower right corner, because labeling all 2. Comparison of type-1 and type-2 error rates in banks as unsatisfactory implies that none of the identifying the downgrading of banks through FIMS satisfactory banks are correctly labeled, so that and UBSS type-1 error is zero and type-2 error is 100 percent. The ideal model would produce a plot that follows the vertical axis from its top to the origin and then follows the horizontal axis from the origin to its end. When the plots for the FIMS rating model and the UBSS are compared, the plot for FIMS lies below and to the left of the UBSS for all values. This pattern means that, for any level of type-2 error, type-1 error is lower for FIMS than for the UBSS. FIMS Rating Model: Estimating Downgrades A primary function of a surveillance model is the ability to identify institutions that are not known to be financially troubled but that are in fact troubled or will be troubled in the near future. Thus, another criterion for the success of a model is the ability to NOTE. A type-1 error is the failure to identify the downgrading of a bank; a identify those banks that are rated satisfactory type-2 error is the false identification of a downgrading. (CAMEL 1 or 2) but that will be downgraded to unsatisfactory (CAMEL 3, 4, or 5) in the near term. Once again, a trade-off exists between type-1 and According to table 6, FIMS incorrectly labeled type-2 error rates (table 6). In this case, a type-1 58.8 percent of downgraded banks as satisfactory error occurs when the model incorrectly classifies a (type-1 error) and incorrectly labeled only 2.7 perdowngraded bank, and a type-2 error occurs when cent of the CAMEL 1- or 2-rated banks as a downthe model misclassifies a bank that is not down- grade (type-2 error). By comparison, the UBSS graded. incorrectly labeled 55.5 percent of downgraded 6. Ability of the FIMS rating and the UBSS composite score to identify banks downgraded from a composite CAMEL rating of 1 or 2 to a composite CAMEL rating of 3, 4, or 5 Estimated CAMEL rating AAAccctttuuuaaalll CCCAAAMMMEEELLL rrraaatttiiinnnggg Unsatisfactory Satisfactory TTToootttaaalll UBSS FIMS UBSS FIMS 1 or 2 Number 2,002 481 16,092 17,613 18,094 Percentage 11.1 2.7 88.9 97.3 100 3, 4, or 5 (downgrade) Number 1,019 757 818 1,080 1,837 Percentage 45.5 41.2 55.5 58.8 100 Total Number 3,021 1,238 16,910 18,693 19,931 Percentage 15.2 6.2 84.8 93.8 100 NOTE. Based upon FIMS ratings calculated with bank Call Report data includes only banks that had previously been rated as satisfactory; therefore from each quarter from December 1989 through March 1992 and upon the total is smaller than that in tables 4 and 5. composite CAMEL ratings assigned in each subsequent quarter. Sample Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIMS: A New Monitoring System for Banking Institutions 13 banks as satisfactory (type-1 error) and incorrectly 3. Comparison of type-1 and type-2 error rates in labeled 11.1 percent of the CAMEL 1- or 2-rated identifying bank failures through FIMS, UBSS, and CAMEL banks as downgrades (type-2 error). Hence, the type-1 error rate for the UBSS is slightly less than Type-1 error, percent that of FIMS, but the type-2 error rate is much greater than that of FIMS. As with the distinction between satisfactory and unsatisfactory tested earlier, comparing the type-1 80 versus type-2 error trade-off over all possible cutoff values is a more revealing test. Such a comparison of FIMS and the UBSS in identifying down- 60 graded banks versus satisfactory banks appears in chart 2. As before, the plot for FIMS lies below and to the left of that for the UBSS for all values, demonstrating that, for any level of type-2 error, - — 40 type-1 error is lower for FIMS than for the UBSS. FIMS 20 XVV / UBSS FIMS Risk Rank Model: / CAMEL Accuracy in Estimating Bank Failures I I To assess the accuracy of the FIMS risk rank model 20 40 60 80 Type-2 error, percent in estimating the likelihood of bank failures, out-of- NOTE. A type-1 error is the failure to identify the failure of a bank; a type-2 sample estimates of the probability of failure within error is the false identification of a bank failure. a two-year period were calculated using binary logistic regression methodology. The accuracy of out-of-sample estimation was assessed over the The classification accuracy for each of the three five two-year periods beginning with year-ends models is good, as indicated by the high degree of 1986-90. For comparison, estimates of failure over curvature in the plots. The plots demonstrate that these same two-year periods were constructed for the FIMS rating model is more accurate than the the UBSS by ranking banks from worst to best UBSS or CAMEL, as the FIMS curve lies below based upon their UBSS composite percentile and to the left of the UBSS and CAMEL curves. scores. Altogether, 48,306 estimates were made For example, when 5 percent of the surviving banks over the five periods. are misclassified, FIMS misclassifies 20 percent of As an additional test of accuracy, banks were the failing banks. In comparison, the UBSS misranked by their CAMEL rating as of year-ends classifies 28 percent of the failing banks and 1988, 1989, and 1990 to see how well the CAMEL CAMEL misclassifies 32 percent of the failing rating estimated failures during the subsequent two- banks. When 10 percent of the surviving banks are year period relative to FIMS and the UBSS. Over misclassified, FIMS misclassifies 9 percent of the these periods, a total of 32,306 estimates were failing banks; the UBSS, 16 percent; and CAMEL, made using each system. 22 percent. With the current population of approxi- The type-1 and type-2 error rates for each system mately 11,000 banks, to reduce the percentage of were calculated and are plotted in chart 3. In this misclassified failing banks to 9 percent the UBSS chart, the vertical axis represents the proportion of and CAMEL would have to misclassify approxifailing banks incorrectly identified as surviving mately 800 more and 1,300 more surviving banks (type-1 error), and the horizontal axis represents as failed, respectively, than would FIMS. the proportion of surviving banks incorrectly iden- The relatively poor performance of the CAMEL tified as failing (type-2 error). The lines plotted on rating is most probably attributable to the fact that these axes represent the trade-off between these CAMEL ratings available at any given date are two types of error. based upon information that is more dated than that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 1995 for the off-site monitoring systems. In many cases, FIMS provides the Federal Reserve with a means these examinations occurred more than a year for estimating the bank component of the BOPEC before the date of interest. For example, the rating. Because the bank component rating is very CAMEL ratings available as of December 31, highly correlated with the composite BOPEC 1990, were based upon examinations conducted rating, this estimate can serve as an off-site surveilfrom December 1985 to December 1990, with the lance rating for bank holding companies. For a average data more than two years old. multibank holding company, the FIMS rating is Even if all banks were examined once each calculated as the asset-weighted average of its subcalendar year, with 25 percent of the banks exam- sidiary banks' FIMS ratings. For a one-bank holdined during each quarter of the year, the examina- ing company, it is the same as the subsidiary bank's tion ratings available at any one time would be, on rating. average, six months old. In contrast, off-site sur- FIMS also provides a risk rank for the combined veillance scores such as those produced by FIMS bank portion of bank holding companies. Like the and the UBSS are based upon the most recent FIMS rating for bank holding companies, the FIMS quarterly financial data, which are available risk rank for a multibank holding company is calcuapproximately two months after the end of each lated as the asset-weighted average of its subsidiary quarter.12 In fact, the age of examination ratings is banks' FIMS risk ranks, whereas for a unitary bank the very reason for off-site systems to monitor the holding company it is the same as the subsidiary financial condition of banks during the periods bank's risk rank. Because bank assets comprise the between examinations. vast majority of a bank holding company's consolidated assets, these asset-weighted risk-rank averages should provide a fairly reliable off-site assess- FIMS AS A SURVEILLANCE MODEL ment of a bank holding company's financial FOR BANK HOLDING COMPANIES condition when used in conjunction with off-site monitoring of the nonbank subsidiaries and con- As part of its regulatory responsibilities, the Fedsolidated organization. eral Reserve is responsible for supervising bank holding companies. The Federal Reserve uses the so-called BOPEC system for rating the financial CONCLUSION condition of bank holding companies as deter- The Financial Institutions Monitoring System has mined from on-site inspections. A BOPEC rating been developed to provide the Federal Reserve consists of a composite rating derived from five System with estimates of the financial condition of component ratings plus a separate management commercial banks and savings banks insured by rating. The five component ratings are for the the Bank Insurance Fund between on-site examina- "bank," "other," "parent," "earnings," and "capitions. FIMS has several advantages over the Fedtal" components (hence the acronym BOPEC). The eral Reserve's previous off-site surveillance sysfirst three components refer to the three segments tems and the expert-based models used by other of the consolidated bank holding company—its federal regulators. bank subsidiaries covered by the Bank Insurance First and most important, the accuracy of the Fund, its other subsidiaries, and its parent comnew system in estimating the financial condition of pany. As with the CAMEL rating, each component banks as indicated both by subsequent on-site rating and the composite rating are scaled from 1 to examination ratings and by subsequent failures is 5. The separate management rating, however, has superior to that of the Federal Reserve's previous only three levels—"S" for satisfactory, "F" for model. fair, and "U" for unsatisfactory. Thus, a bank Second, the new system provides objective meaholding company receiving the highest possible sures of a bank's financial condition. Both the ratings would have a BOPEC of "11111/1-S." variables and the variable weights that are used to calculate these measures are determined by rigor- 12. For expositional purposes, this discussion assumes that only ous statistical testing rather than by subjective one date is associated with each examination when, in actuality, three are. See note 11. judgment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FIMS: A New Monitoring System for Banking Institutions 15 Third, the new system provides a consistent mea- changing conditions in the banking industry, FIMS sure of banks' financial condition. Both models should continue to be more accurate than existing that make up the new system can be calculated for alternative systems. each bank. Finally, the new system can identify deteriora- Fourth, the new system provides a timely mea- tion or improvement in the banking industry within sure of financial condition. The FIMS rating and peer groups and systemwide. Unlike systems that risk rank for an individual bank can be calculated rely upon peer-group rankings, FIMS measures as soon as the bank files its quarterly Call Report absolute as well as relative changes in financial rather than later, when enough quarterly Call condition. Report data are available to calculate meaningful Preliminary testing has indicated that the methpeer-group averages. odology used to estimate the composite CAMEL Fifth, the new system is more flexible than alter- rating produces estimates of the five component native systems. Explanatory variables can be added CAMEL ratings that are as accurate as estimates of to or deleted from FIMS with minimal revisions to the composite CAMEL rating. By providing estisoftware or procedures. The UBSS and CAEL use mates of component ratings as well as of the comfixed sets of financial ratios to calculate the surveil- posite rating, FIMS could be used to better focus lance scores, and any change in these ratios would examination efforts on the dimensions of perforrequire considerable revision to the surveillance mance that appear to require the most urgent supersystem. The greater flexibility of FIMS should visory attention. enable staff members at the Board and the Reserve FIMS is also being tested for possible use on Banks to continue to improve the new system's foreign banks. Most problematic is the assessment accuracy over time as experimentation with differ- of the accuracy of the results, given the lack of ent variables continues and as feedback from end- CAMEL ratings for foreign banks. Comparison of users is incorporated into the system. Moreover, FIMS ratings for foreign banks with alternative because the coefficients on the explanatory vari- measures of risk, however, suggest that the FIMS ables change each quarter in reflection of the approach is a promising avenue of research. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Industrial Production and Capacity Utilization: A Revision Richard D. Raddock, of the Board's Division of capacity index is 140.9 percent of output in 1987, Research and Statistics, prepared this article. compared with the level of 140.0 percent reported previously. As a result, the rate of capacity The Federal Reserve index of industrial production utilization—the ratio of production to capacity— (IP) and the related measures of capacity and utilihas been revised down about one-third of a percentzation have been revised starting with January age point to an estimated 84.3 percent in the third 1991.1 The revised indexes incorporate new or quarter of 1994. updated data and, beginning with January 1992, When compared with the earlier estimates, the updated weights. The new weights used for adding revised IP index shows stronger growth in 1991 up the series are derived from value added by and 1992 and slower growth in 1993 and 1994 industries in 1992 rather than in 1987. Value added (table 2). The upward revision to IP growth in 1992 in 1987, however, still provides the base weights to largely reflects the incorporation of the new Census calculate annual growth of IP from 1987 to 1992, of Manufactures data. The slower growth now and the production and related capacity indexes shown for 1993 and 1994 is due chiefly to the continue to be expressed as a percentage of output introduction of the 1992 value-added weights. in 1987 (chart 1). The new estimates of production incorporate pre- 1. Revised and earlier industrial output, capacity, and liminary results of the 1992 Census of Manufacutilization, 1987-94 tures, annual physical data on mining for 1992 and Ratio scale, 1987 output = 100 1993, and updated monthly source data, seasonal factors, and productivity relationships. The revisions to capacity and utilization reflect the new IP indexes, updated estimates of capital stocks for manufacturing, and new information provided mainly by trade associations on physical capacity and utilization for selected industries. The updated capital stocks incorporate new data on actual manufacturing investment in 1992 and revised estimates of investment in 1993 and 1994 based on surveys of capital spending plans by manufacturers. Percent of capacity For the third quarter of 1994, the revised IP index is 118.8 percent of output for total industry in 1987, compared with the level of 118.4 percent reported previously (table l.A.)2 The revised 1. Although the revisions of the individual capacity indexes and utilization rates begin in 1991, small revisions to some aggregates extend back to 1987 for technical reasons. This aspect of the revision is discussed later. 2. The figures for August through October of this year are subject to further revision in the upcoming monthly statistical 1988 1990 1992 1994 releases. NOTE. Seasonally adjusted, monthly data through October 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

17 The new 1992 weights, a key aspect of the Annual growth of industrial capacity has been revision, have substantially reduced the relative revised up for 1991, 1992, and 1993. By the fourth share of output of computers in the total index, a quarter of 1993, capacity utilization is unchanged reduction that follows from the rapid decline in the from the earlier estimate (tables 4 and 5). The relative price of computing power between 1987 faster growth of capacity through 1993 is the result and 1992. The smaller weight now given to the of the revised gain in IP over the period as well as a fast-growing computer industry explains, in large faster rate of capital formation by manufacturers. part, the slower growth in 1993 and 1994 shown by Capital stock estimates have been raised, in large the revised indexes for business equipment and for part, because the 1992 Census of Manufactures total manufacturing (table 3). By contrast, indexes shows investment spending by manufacturers to for these groups excluding computers are largely have been stronger than survey data had previously unaffected by the shift to 1992 valuation, and revi- indicated. sions to these aggregates indicate that the picture of The average upward revision to capacity growth industrial activity during the past two years has for total manufacturing is 0.2 percentage point a been little changed, on balance, by the revision. year over the past four years. As with the producl.A. Revised data for industrial production, capacity, and utilization for total industry, 1987-941 Seasonally adjusted data except as noted Quarter AAnnnnuuaall YYeeaarr JJaann.. FFeebb.. MMaarr.. AApprr.. MMaayy JJuunnee JJuullyy AAuugg.. SSeepptt.. OOcctt.. NNoovv.. DDeecc.. aavvgg..22 1 2 3 4 Industrial production (percentage change) 1987 -.3 1.4 .4 .5 .6 .9 .4 .3 -.2 1.3 .1 .7 5.5 8.1 5.2 6.5 4.9 1988 .3 .2 .0 .8 -.3 .0 .6 .6 -.5 .3 .6 .6 3.8 3.0 2.9 3.0 4.4 1989 .3 -.5 .9 .0 -.3 -.3 -1.0 .5 -.4 -.4 .4 .7 3.9 .3 -4.4 -.2 1.5 1990 -.5 .5 .3 -.7 .7 .2 -.2 .3 .0 -.5 -1.3 -.4 2.1 1.1 1.6 -5.2 .0 1991 -.5 -.9 -1.0 .5 .8 .9 .3 .1 .9 -.1 .0 -.4 -8.1 1.7 6.3 1.5 -1.7 1992 -.3 .9 .6 .5 .5 -.3 .9 -.1 .2 .6 1.0 .5 .9 5.8 3.4 6.2 3.2 1993 .2 .6 .1 .0 -.2 .3 .4 .2 .3 .1 .9 .9 5.1 .7 3.3 5.3 4.1 1994 .0 .8 .9 .1 .5 .6 .2 .7 .0 .6 7.1 6.0 5.0 Industrial production 1987 96.5 97.9 98.2 98.8 99.4 100.3 100.6 100.9 100.7 102.1 102.2 102.8 97.5 99.5 100.8 102.3 100.0 1988 103.2 103.4 103.4 104.3 104.0 104.0 104.6 105.2 104.7 105.0 105.6 106.3 103.3 104.1 104.8 105.6 104.4 1989 106.6 106.2 107.1 107.1 106.7 106.4 105.3 105.8 105.4 105.0 105.4 106.1 106.6 106.7 105.5 105.5 106.0 1990 105.5 106.1 106.4 105.7 106.5 106.7 106.5 106.8 106.8 106.3 105.0 104.5 106.0 106.3 106.7 105.3 106.0 1991 104.0 103.1 102.1 102.6 103.5 104.4 104.7 104.8 105.7 105.6 105.6 105.2 103.1 103.5 105.1 105.5 104.3 1992 104.9 105.8 106.4 106.9 107.5 107.2 108.1 108.0 108.2 108.8 109.9 110.4 105.7 107.2 108.1 109.7 107.6 1993 110.6 111.3 111.4 111.4 111.1 111.5 112.0 112.2 112.5 112.7 113.7 114.7 111.1 111.3 112.2 113.7 112.0 1994 114.7 115.6 116.6 116.7 117.4 118.0 118.2 119.1 119.1 119.8 115.7 117.4 118.8 Capacity 1987 121.6 121.8 122.0 122.2 122.4 122.6 122.8 123.0 123.2 123.4 123.6 123.8 121.8 122.4 123.0 123.6 122.7 1988 123.9 124.1 124.2 124.4 124.5 124.7 124.8 125.0 125.1 125.3 125.4 125.5 124.1 124.5 125.0 125.4 124.7 1989 125.7 125.9 126.1 126.3 126.5 126.7 126.9 127.1 127.3 127.5 127.7 127.9 125.9 126.5 127.1 127.7 126.8 1990 128.1 128.3 128.5 128.7 128.9 129.1 129.3 129.5 129.7 129.9 130.1 130.3 128.3 128.9 129.5 130.1 129.2 1991 130.5 130.7 130.9 131.1 131.3 131.5 131.7 132.0 132.2 132.4 132.6 132.8 130.7 131.3 132.0 132.6 131.6 1992 133.0 133.3 133.5 133.7 134.0 134.2 134.4 134.7 134.9 135.1 135.4 135.6 133.3 134.0 134.7 135.4 134.3 1993 135.8 136.1 136.3 136.5 136.8 137.0 137.2 137.5 137.7 137.9 138.2 138.4 136.1 136.8 137.5 138.2 137.1 1994 138.7 139.0 139.3 139.7 140.0 140.3 140.6 140.9 141.3 141.6 139.0 140.0 140.9 Utilization 1987 79.3 80.3 80.5 80.8 81.2 81.8 81.9 82.0 81.8 82.7 82.7 83.1 80.1 81.3 81.9 82.8 81.5 1988 83.2 83.3 83.2 83.8 83.5 83.4 83.8 84.2 83.7 83.8 84.2 84.6 83.3 83.6 83.9 84.2 83.7 1989 84.8 84.3 84.9 84.8 84.3 83.9 83.0 83.3 82.8 82.3 82.5 82.9 84.7 84.3 83.0 82.6 83.7 1990 82.4 82.7 82.8 82.1 82.6 82.6 82.4 82.5 82.4 81.8 80.7 80.2 82.6 82.5 82.4 80.9 82.1 1991 79.7 78.9 78.0 78.3 78.8 79.4 79.5 79.4 80.0 79.8 79.6 79.2 78.9 78.8 79.6 79.6 79.2 1992 78.8 79.4 79.7 80.0 80.3 79.9 80.4 80.2 80.2 80.6 81.2 81.5 79.3 80.0 80.3 81.1 80.2 1993 81.5 81.8 81.7 81.6 81.2 81.4 81.6 81.6 81.7 81.7 82.3 82.9 81.7 81.4 81.6 82.3 81.7 1994 82.7 83.2 83.7 83.6 83.8 84.1 84.1 84.5 84.3 84.6 83.2 83.8 84.3 1. Estimates from August 1994 through October 1994 are subject to 2. Annual averages of industrial production are calculated from not seafurther revision in the upcoming monthly releases. sonally adjusted indexes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 1995 tion index, the use of 1992 value-added weights plastics products, stone, clay, and glass, paper, and reduces the contribution to aggregate indexes made fabricated metals industries contributed to the by the rapidly expanding computer industry. The increase; however, downward revisions to operatupward revision to growth of capacity for manufac- ing rates in the primary chemical, petroleum, and turing excluding the computer industry is larger in textiles industries largely offset those increases. each year since 1991. Among advanced processors, overall utilization is By the third quarter of 1994, capacity utilization lower because of downward revisions in a number in manufacturing is 83.6 percent, 0.4 percentage of industries, especially printing and publishing point lower than the rate previously reported. and furniture and fixtures. Although figures for some of the individual series Capacity estimates for mining and utilities are changed noticeably, the revised estimates for the little changed. Utilization rates in mining and in major aggregates on balance are not appreciably gas utilities for the third quarter of 1994 are higher different from the earlier ones. Among primary- than the estimates reported earlier, whereas the processing industries, operating rates are now esti- operating rate for electric utilities is essentially the mated to have been slightly higher. The rubber and same as the earlier rate. l.B. Revised data for industrial production, capacity, and utilization for manufacturing industries, 1987-941 Seasonally adjusted data except as noted Quarter AAnnnnuuaall YYeeaarr JJaann.. FFeebb.. MMaarr.. AApprr.. MMaayy JJuunnee JJuullyy AAuugg.. SSeepptt.. OOcctt.. NNoovv.. DDeecc.. aavvgg..22 1 2 3 4 Industrial production (percentage change) 1987 -.6 1.7 .5 .4 .7 .9 .4 .0 .2 1.0 .4 .6 6.3 8.6 5.6 6.8 6.0 1988 .2 .1 .2 .7 -.1 .0 .5 .4 .0 .1 .9 .6 3.6 3.3 3.0 4.4 4.7 1989 .8 -.9 .6 .2 -.5 -.2 -1.2 .4 -.4 -.5 .3 .2 4.3 -.3 -5.3 -1.3 1.6 1990 -.1 .9 .4 -.9 .5 .0 -.3 .5 -.1 -.6 -1.2 -.5 3.7 .2 1.0 -5.5 -.3 1991 -.8 -.9 -1.1 .6 .7 1.0 .4 .2 1.1 -.1 -.1 -.2 -9.3 1.3 7.6 2.1 -2.0 1992 -.2 1.0 .7 .4 .5 -.2 .9 .0 .1 .5 l.l .4 2.4 6.0 4.1 6.0 3.9 1993 .5 .5 .1 .1 -.2 .2 .5 .1 .4 .1 1.1 1.1 6.1 1.3 2.9 6.4 4.5 1994 -.3 .8 1.1 .3 .5 .3 .4 .9 .0 .7 7.2 7.3 5.4 Industrial production 1987 96.2 97.8 98.3 98.7 99.4 100.3 100.7 100.7 100.9 102.0 102.4 103.0 97.4 99.4 100.8 102.5 100.0 1988 103.2 103.4 103.6 104.3 104.2 104.2 104.7 105.1 105.2 105.3 106.2 106.8 103.4 104.2 105.0 106.1 104.7 1989 107.7 106.7 107.3 107.6 107.1 106.8 105.5 106.0 105.6 105.1 105.4 105.6 107.2 107.2 105.7 105.4 106.4 1990 105.5 106.5 107.0 106.0 106.6 106.6 106.3 106.9 106.8 106.2 104.9 104.4 106.3 106.4 106.6 105.1 106.1 1991 103.6 102.7 101.6 102.1 102.8 103.9 104.4 104.5 105.7 105.5 105.4 105.3 102.6 103.0 104.9 105.4 103.9 1992 105.1 106.1 106.9 107.3 107.8 107.7 108.6 108.6 108.7 109.3 110.5 110.9 106.0 107.6 108.7 110.3 108.0 1993 111.5 112.0 112.2 112.3 112.1 112.3 112.9 112.9 113.4 113.6 114.8 116.1 111.9 112.3 113.1 114.8 112.9 1994 115.8 116.7 118.0 118.4 119.0 119.3 119.8 120.8 120.9 121.8 116.8 118.9 120.5 Capacity 1987 121.2 121.5 121.7 121.9 122.2 122.4 122.7 122.9 123.2 123.4 123.7 123.9 121.5 122.2 122.9 123.7 122.6 1988 124.1 124.3 124.5 124.7 124.9 125.1 125.3 125.5 125.7 125.9 126.0 126.2 124.3 124.9 125.5 126.0 125.2 1989 126.5 126.7 127.0 127.2 127.4 127.7 127.9 128.2 128.4 128.7 128.9 129.2 126.7 127.4 128.2 128.9 127.8 1990 129.4 129.6 129.8 130.1 130.3 130.5 130.7 130.9 131.2 131.4 131.6 131.8 129.6 130.3 130.9 131.6 130.6 1991 132.1 132.3 132.5 132.8 133.0 133.2 133.5 133.7 133.9 134.2 134.4 134.6 132.3 133.0 133.7 134.4 133.4 1992 134.9 135.2 135.5 135.7 136.0 136.3 136.6 136.8 137.1 137.4 137.7 137.9 135.2 136.0 136.8 137.7 136.4 1993 138.2 138.5 138.8 139.1 139.3 139.6 139.9 140.2 140.4 140.7 141.0 141.3 138.5 139.3 140.2 141.0 139.7 1994 141.6 142.0 142.3 142.7 143.1 143.4 143.8 144.2 144.5 144.9 142.0 143.1 144.2 Utilization 1987 79.3 80.5 80.7 80.9 81.3 81.9 82.1 81.9 81.9 82.6 82.8 83.1 80.2 81.4 82.0 82.8 81.6 1988 83.2 83.1 83.2 83.6 83.4 83.3 83.6 83.8 83.7 83.7 84.3 84.6 83.2 83.5 83.7 84.2 83.6 1989 85.2 84.2 84.6 84.6 84.0 83.7 82.5 82.7 82.2 81.7 81.8 81.8 84.6 84.1 82.5 81.7 83.2 1990 81.6 82.2 82.4 81.5 81.8 81.7 81.3 81.6 81.4 80.8 79.7 79.2 82.0 81.7 81.4 79.9 81.3 1991 78.4 77.6 76.6 76.9 77.3 78.0 78.2 78.2 78.9 78.7 78.4 78.2 77.6 77.4 78.4 78.4 78.0 1992 77.9 78.5 78.9 79.0 79.3 79.0 79.5 79.4 79.3 79.6 80.3 80.4 78.4 79.1 79.4 80.1 79.2 1993 80.7 80.9 80.8 80.8 80.5 80.5 80.7 80.6 80.8 80.7 81.4 82.2 80.8 80.6 80.7 81.4 80.9 1994 81.8 82.2 82.9 83.0 83.2 83.2 83.3 83.8 83.6 84.0 82.3 83.1 83.6 For notes, see table l.A. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: A Revision 19 REVISIONS TO PRODUCTION advanced at a rate of about 5Vi percent in both BY MARKET GROUP 1993 and the first three quarters of 1994, a little less than the rate of growth reported before the In examining industrial production by major mar- revision. Growth in output of consumer nondurable ket group, the revisions to the level of output of goods has averaged only about 2 percent a year consumer goods for the 1991-93 period were small since 1990, essentially the same as was reported (table 2). Over the first three quarters of 1994, previously. output of consumer durables, particularly motor The business equipment group has been a major vehicles, is now estimated to have risen faster than source of strength since late 1991. Although the previously estimated. But the larger gain has been rate of growth of output in this sector revised down more than offset by slower growth in production of in 1993 and 1994 because of the reduced weight of consumer nondurables, which is more heavily computers, the output index for information proweighted. Output of durable consumer goods cessing and related equipment continued to grow at helped fuel the recovery and expansion from the a double-digit rate. Output of industrial, farm, and 1991 trough until early 1994 (chart 2), with gains service industry equipment and of office furniture initially concentrated in trucks and appliances and also grew rapidly in 1993 and 1994. Of the major then broadening to include other durable goods. subgroups within business equipment, only the pro- After reaching exceptionally high levels in early duction of transit equipment is lower in the third 1994, however, output of automobiles and light quarter of 1994 than it was two years earlier; the trucks slowed. Output of some popular models, steep drop in output of commercial aircraft and particularly sport utility vehicles, was limited by parts exceeded gains in business vehicles and raileffective capacity constraints. Production of con- road equipment. The downsizing of the defense sumer durables other than automotive products and space equipment sector has cut its level of 2. Revised rates of growth in industrial production, by major market group, 1990-941 Revised rate of growth1 Difference between revised and earlier growth rates (percent) MMaarrkkeett ggrroouupp (percentage points) 1990 1991 1992 1993 1994 1990 1991 1992 1993 1994 Total index -.2 .2 4.0 3.6 6.0 .0 .5 .8 -.6 -.5 Products, total -.4 -.1 4.3 2.9 5.1 .0 .5 .4 -1.0 -.8 Final products -.1 .6 4.6 2.8 4.7 .0 .7 .5 -1.0 -1.3 Consumer goods -1.8 2.5 3.4 2.1 3.5 .0 .2 .2 .3 -.7 Durable consumer goods -8.3 5.4 6.5 8.2 5.0 .0 .4 .1 -.9 1.2 Automotive products -11.7 5.3 11.9 11.5 4.3 .0 .3 .2 -1.1 2.3 Other -5.4 5.4 2.3 5.4 5.6 .0 .5 .2 -.5 .2 Nondurable consumer goods .1 1.8 2.6 .7 3.1 .0 .2 .2 .9 -1.2 Equipment 2.3 -2.0 6.3 3.9 6.5 .0 1.1 1.1 -2.5 -1.8 Business equipment 3.0 .8 9.0 6.9 10.0 .0 1.3 .3 -3.0 -1.4 Industrial -1.4 -6.7 3.5 6.0 9.9 .0 -.8 -.1 1.8 -1.8 Information processing and related 6.2 4.5 16.5 10.6 13.6 .0 3.4 .1 -5.0 -2.5 Transit 7.0 7.9 1.1 -2.7 -1.5 .0 .2 2.2 -4.4 2.3 Other -2.2 -5.3 6.7 11.8 13.6 .0 -.5 .4 1.2 2.1 Defense and space equipment -.9 -8.1 -6.0 -9.8 -11.5 .0 .6 4.3 -.3 -3.1 Intermediate products -1.6 -2.5 3.3 3.4 6.5 .0 .0 .2 -.7 .9 Construction supplies -4.3 -3.6 4.3 6.2 7.9 .0 .9 .9 .3 2.1 Business supplies .2 -1.9 2.8 1.9 5.6 .0 -.7 -.1 -1.1 .1 Materials .2 .7 3.7 4.6 7.5 .0 .6 1.5 -.2 .0 Durable -.1 .9 6.2 7.4 10.2 .0 1.2 2.8 -.8 -.3 Nondurable .7 .7 2.1 4.0 5.3 .0 -.5 .0 .2 -.1 Energy materials .2 .2 -.1 -.9 3.1 .0 .3 -.2 .1 .4 Aggregates, excluding computer and office equipment Total index -.5 .0 3.4 3.1 5.7 .0 .4 1.1 .1 .0 Business equipment 1.5 -.4 5.3 3.8 8.8 .0 .6 1.5 .3 .5 1. Growth rates are calculated as the percentage change in the seasonally rates, at an annual rate, are calculated from the fourth quarter of 1993 to the adjusted index from the fourth quarter of the previous year to the fourth third quarter of 1994. quarter of the year specified in the column heading. For 1994, the growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Federal Reserve Bulletin • January 1995 production about a third since early 1990, nearly as Laspeyres formula.3 Value added in 1992 determuch as was reported before the revision. mines the base weights for 1992 forward; value For intermediate products, the new figures show added in 1987 continues to provide the base the same solid advance over the past few years weights to calculate annual growth from 1987 to reported earlier. Output of construction supplies is 1992. Indexes based on the 1992 weight base have now estimated to have risen more strongly, with the been linked to 1987-based indexes at the beginning upward revisions since the fourth quarter of 1991 of 1992 to form a continuous time series expressed cumulating to 3.5 percent by the third quarter of as percentages of output in 1987. 1994. In contrast, the output index for general Total industrial value added in 1992 was business supplies grew less overall than was $1.7 trillion, of which durable manufacturing conreported before. tributed 45 percent; nondurable manufacturing, The revised production index for industrial mate- 40 percent; mining, 7 percent; and utilities, 8 perrials, like the unrevised index, shows accelerating cent (table 6). The 1992 Censuses of Manufactures growth in the past two years; output rose at an and Mineral Industries provided measures of value annual rate of 7.5 percent over the first three quar- added by individual manufacturing and mining ters of 1994. Growth has been concentrated in industries in 1992. Value-added estimates for elecdurable materials used in equipment and in con- tric and gas utilities were compiled from income sumer durables, particularly motor vehicles. and expense information published by the Department of Energy, the Edison Electric Institute, and the American Gas Association. TECHNICAL ASPECTS OF THE REVISION Value-Added Weights for 1992 3. See Board of Governors of the Federal Reserve System, Industrial Production—1986 Edition (Board of Governors, 1986), The index of industrial production is a linked pp. 22-23 and chapter 5, "Aggregation," pp. 59-65, for a discusquantity index that is calculated according to the sion of the methodology of the industrial production index. 2. Industrial output by market groups, 1987-94 1988 1990 1992 1994 1988 1990 1992 1994 NOTE. Seasonally adjusted, monthly data through October 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: A Revision 21 The ratio of value added in an industry to total As discussed earlier, the most notable result of value added in manufacturing, mining, and utilities the introduction of 1992 weights is to reduce the indicates the proportionate contribution of that effect of the rapidly rising output of the computer industry to total industrial production. The value- and office equipment industry (SIC 357) on total added proportions for 1992 were introduced in this industrial production since 1992. Previously, the revision to combine the production indexes begin- proportion of SIC 357 in total IP, which was based ning in 1992. Updated weights allow reasonably on 1987 price relationships, had grown from current price relationships to determine the relative 2.3 percent in 1987 to 3.7 percent in 1992 and to importance of the series in the index. 4.7 percent in 1993. The proportion for SIC 357 3. Revised rates of growth in industrial production, by major industry group, 1990-94 Revised rate of growth2 Difference between revised and earlier growth rates IInndduussttrryy ggrroouupp ggrr SS oo II uu CC pp 11 (percent) (percentage points) 1990 1991 1992 1993 1994 1990 1991 1992 1993 1994 Total index -.2 .2 4.0 3.6 6.0 .0 .5 .8 -.6 -.5 Manufacturing -.2 .2 4.6 4.2 6.6 .0 .5 1.0 -.8 -.6 Primary processing -1.2 -.6 3.8 5.1 5.6 .0 .1 1.0 .1 .3 Advanced processing .2 .6 5.0 3.7 7.1 .0 .7 1.0 -1.3 -1.0 Durable manufacturing -.7 .0 5.8 6.3 8.2 .0 .9 1.5 -1.4 -.3 Lumber and products 24 -8.5 -.2 7.3 5.7 3.0 .0 -.9 -1.1 .7 1.6 Furniture and fixtures 25 -4.2 -1.0 5.5 4.5 10.8 .0 .2 1.8 -1.3 .3 Stone, clay, and glass products 32 -3.3 -6.8 5.7 5.0 4.6 .0 -.1 .6 -.3 2.3 Primary metals 33 .9 -2.9 1.1 6.8 5.1 .0 .5 .3 -.7 2.4 Iron and steel 331,2 2.9 -5.2 1.6 8.2 1.2 .0 .0 .3 -1.2 .7 Raw steel 5.6 -8.2 1.7 5.9 -1.1 .0 .0 .0 .0 .0 Nonferrous 333-6,9 -2.0 .6 .3 5.1 10.5 .0 1.3 .1 .4 4.1 Fabricated metal products 34 -3.0 -1.4 4.5 4.9 8.6 .0 .9 3.5 -.7 .1 Industrial machinery and equipment 35 1.7 -1.2 11.3 14.1 13.4 .0 1.5 -2.0 -3.3 -2.4 Computer and office equipment 357 11.0 5.6 30.6 33.5 17.9 .0 3.6 -1.2 -.4 -2.7 Electrical machinery 36 -.2 4.0 11.4 13.1 17.2 .0 1.5 6.2 2.2 -.6 Transportation equipment 37 -1.2 1.2 2.3 .5 .1 .0 .6 2.5 -3.1 1.0 Motor vehicles and parts 371 -7.2 10.2 11.7 14.0 3.9 .0 .8 1.2 -2.6 .1 Autos and light trucks -11.1 12.7 8.8 14.9 1.4 .0 .4 -2.4 -2.1 .7 Aerospace and miscellaneous 372-6,9 4.1 -5.8 -6.3 -14.4 -5.3 .0 .4 3.7 -3.6 2.1 Instruments 38 2.0 .7 .5 -2.1 4.6 .0 1.2 .5 .7 .3 Miscellaneous 39 -1.1 .5 .6 3.8 7.5 .0 -.2 -.1 1.7 2.7 Nondurable manufacturing .4 .5 3.2 1.8 4.7 .0 .0 .4 .3 -.9 Foods 20 1.7 .8 1.9 2.1 2.9 .0 -.2 .0 1.5 -1.3 Tobacco products 21 .0 -12.1 10.0 -15.5 22.1 .0 -2.6 .3 .0 1.7 Textile mill products 22 -5.2 5.6 4.4 1.4 4.2 .0 -1.1 -.7 -.2 -1.5 Apparel products 23 -4.6 5.9 .0 -1.2 3.6 .0 1.5 -.1 .5 -1.0 Paper and products 26 2.6 1.8 -.4 7.2 2.7 .0 .6 -.5 1.6 -.9 Printing and publishing 27 -.7 -2.4 2.1 -.2 3.5 .0 -.3 -1.0 -1.4 -1.0 Chemicals and products 28 1.4 .5 4.4 3.0 5.2 .0 -.2 1.1 .7 -1.8 Petroleum products 29 -.1 -2.0 3.3 2.5 -1.4 .0 -1.1 -.2 -.1 .7 Rubber and plastics products 30 .6 3.2 8.4 6.0 9.8 .0 2.0 3.5 1.2 -.3 Leather and products 31 -7.5 -5.7 5.3 -4.8 -.3 .0 -1.4 5.2 -1.4 .6 Mining 2.6 -3.1 .3 -.8 2.5 .0 .3 .8 .0 1.0 Metal mining 10 4.4 .2 5.8 .7 -4.4 .0 -.3 .7 -5.8 3.8 Coal mining 12 1.4 -2.5 -.7 -3.3 9.2 .0 .0 .0 -.1 .3 Oil and gas extraction 13 3.0 -3.3 -.6 -.9 1.4 .0 .2 .5 .4 .7 Stone and earth minerals 14 .6 -5.1 4.8 2.7 5.7 .0 2.4 4.2 .7 2.3 Utilities -2.0 2.6 1.9 1.1 2.8 .0 .2 .0 .2 -.2 Electric 491,3pt -.6 1.5 1.9 .6 3.6 .0 .3 -.2 .2 -1.0 Gas 492,3pt -6.8 6.8 1.9 3.2 -.2 .0 -.1 .6 .4 2.4 Aggregate, excluding computer and office equipment Manufacturing -.6 ..00 33..88 33..55 6.3 .0 .4 1.2 -.1 -.1 1. Standard Industrial Classification. quarter of the year specified in the column heading. For 1994, the growth 2. Growth rates are calculated as the percentage change in the seasonally rates are calculated from the fourth quarter of 1993 to the third quarter of adjusted index from the fourth quarter of the previous year to the fourth 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1995 based on 1992 Census measures of value added, To facilitate comparisons with data expressed however, is only about half the proportion before in 1987 dollars, a supplementary set of measures the revision: 1.7 percent in 1992 and 2.2 percent in combined with weights based on the market 1993. The reduced weight of SIC 357 in the total value of products in 1987 is published in the index reflects the decline in the cost of computing monthly statistical release (table 7 of the G.17 power between 1987 and 1992. statistical release). These gross value of product 4. Revised rates of growth in capacity, by major industry group, 1990-94 Revised rate of growth2 Difference between revised and earlier growth rates IInndduussttrryy ggrroouupp cc SS oo II dd CC ee11 (percent) (percentage points) 1990 1991 1992 1993 1994 1990 1991 1992 1993 1994 Total index 1.9 1.9 2.1 2.1 2.5 .0 .2 .4 .2 .0 Manufacturing 2.1 2.1 2.4 2.4 2.9 .0 .2 .4 .2 .0 Primary processing 1.7 1.2 1.4 1.4 1.8 .0 .1 .4 .3 .7 Advanced processing 2.2 2.5 2.9 2.8 3.3 -.1 3 .5 .1 -.3 Durable processing 2.1 2.5 2.6 2.6 3.3 .0 .7 .5 .0 -.3 Lumber and products 24 .6 -.3 .3 .7 1.3 .0 -.4 .1 .0 .6 Furniture and fixtures 25 2.2 .9 1.6 2.4 2.7 .0 .2 .8 1.1 1.4 Stone, clay, and glass products 32 .6 .2 1.0 1.4 -.1 -.1 -.4 -.1 .4 Primary metals 33 .6 -.6 -1.0 -.6 .3 .0 .4 .4 .6 .8 Iron and steel 331,2 .9 -1.2 -2.3 -1.0 .5 .0 .0 .0 .9 1.3 Raw steel .0 -1.6 -2.6 -3.7 -2.7 .0 .0 -.4 -1.7 -1.9 Nonferrous 333-6,9 .2 .4 .7 .0 -.1 .2 1.0 .8 .1 .1 Fabricated metal products 34 .3 .4 .9 .9 .9 .0 .5 1.1 1.1 1.1 Industrial machinery and equipment 35 4.7 5.5 4.8 4.4 5.3 .0 .2 -.5 -1.5 -3.9 Computer and office equipment 357 15.3 15.4 15.6 14.4 15.1 .0 1.0 2.2 .4 -5.9 Electrical machinery 36 3.6 5.7 6.6 7.5 8.9 .0 3.0 3.7 2.5 2.1 Transportation equipment 37 1.1 1.3 1.5 .5 1.4 .1 .5 -.5 -.8 .3 Motor vehicles and parts 371 1.5 3.0 3.2 2.5 3.9 .4 1.3 -.3 -1.1 -.5 Autos and light trucks .8 1.0 2.4 .8 3.4 .0 .0 -2.4 -2.9 -1.5 Aerospace and miscellaneous 372-6,9 .7 -.2 -.3 -1.6 -1.3 -.1 -.1 -.7 -.6 1.0 Instruments 38 1.3 1.2 1.2 1.3 1.4 .0 -.1 -.2 -.2 .1 Miscellaneous 39 1.6 1.5 3.5 3.2 3.4 .0 -.2 1.8 1.6 2.0 Nondurable manufacturing 2.1 1.7 2.2 2.2 2.3 .0 -.3 .4 .5 .4 Foods 20 1.4 1.9 2.2 2.2 2.1 .0 -.2 -.3 -.3 -.7 Tobacco products 21 -.4 -.5 -.7 1.0 .7 .0 -.1 -.3 1.4 1.0 Textile mill products 22 1.6 .5 1.2 1.7 2.0 .0 -.5 .2 .0 .0 Apparel products 23 .1 -.4 .9 .0 .3 .0 .1 1.7 .8 1.0 Paper and products 26 3.0 2.3 1.9 1.6 1.7 .1 -.1 .1 .0 .2 Printing and publishing 27 2.9 1.3 1.7 1.7 1.3 .0 -.3 1.0 1.0 .2 Chemicals and products 28 2.6 2.6 3.5 3.3 3.6 .1 -.3 .9 .9 1.1 Petroleum products 29 .9 -.8 -1.3 -.5 -.4 .0 .0 .0 .0 .0 Rubber and plastics products 30 4.0 3.5 4.4 4.4 4.6 .0 .1 1.1 1.4 1.8 Leather and products 31 -3.5 -3.8 -2.4 -2.7 -2.4 .0 -.3 1.2 1.1 1.7 Mining -1.2 -.3 -1.1 -1.4 -.5 2 .3 -.1 -.3 .1 Metal mining 10 5.1 2.3 2.5 1.7 .8 -.2 .1 .9 .2 -1.7 Coal mining 12 2.1 2.1 1.0 1.1 1.1 .0 .0 .0 .0 .1 Oil and gas extraction 13 -2.6 -1.0 -2.1 -2.4 -1.1 .4 .5 -.2 -.4 .4 Stone and earth minerals 14 -.1 -.5 .5 .0 -.2 .0 .0 .7 .1 -.4 Utilities 2.4 1.3 1.2 1.1 1.2 .0 -.1 .0 .1 -.1 Electric 491,3pt 3.2 1.8 1.5 1.4 1.4 .0 .0 .0 .0 -.2 Gas 492,3pt .0 .0 .0 .0 .2 .0 .0 .0 .0 .3 Aggregates, excluding computer and office equipment Total index 1.5 1.5 1.8 1.8 2.2 .1 .3 .6 .5 .6 Manufacturing 1.6 1.6 2.1 2.1 2.5 .0 .2 .7 .5 .7 1. Standard Industrial Classification. petroleum products; rubber and plastics products; lumber and products; 2. Growth rates are calculated as the percentage change in the seasonally primary metals; fabricated metals; and stone, clay, and glass products. adjusted index from the fourth quarter of the previous year to the fourth Advanced processing manufacturing includes foods, tobacco products, quarter of the year specified in the column heading. For 1994, the annual apparel products, printing and publishing, chemical products and other growth rates are calculated from the fourth quarter of 1993 to the third agricultural chemicals, leather and products, furniture and fixtures, industrial quarter of 1994. and commercial machinery and computer equipment, electrical machinery, NOTE. Primary processing manufacturing includes textile mill products; transportation equipment, instruments, and miscellaneous manufactures. paper and products; industrial chemicals, synthetic materials, and fertilizers; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: A Revision 23 figures, expressed in billions of 1987 dollars, cover Changes in Series Structure goods leaving the industrial sector—consumer goods, equipment, and construction and business The structure of the index of industrial production, supplies. Industrial materials are excluded to avoid which comprises 255 individual series, remains double counting. The 1987 gross value weights essentially unchanged. One series was added, and have not been revised. one was deleted beginning in 1992. First, the 5. Revised capacity utilization rates, by major industry group Difference between revised Revised rate and earlier growth rates (percent of capacity) SSIICC (percentage points) IInndduussttrryy ggrroouupp ccooddee11 1967-93 1988-89 1990-91 1990-91 1992:Q4 1993:Q4 1994:Q3 1992:Q4 1993:Q4 1994:Q3 avg. high low low Total index 81.9 84.9 78.0 81.1 82.3 84.3 -.1 .6 .0 -.3 Manufacturing 81.2 85.2 76.6 80.1 81.4 83.6 .0 .7 -.1 -.4 Primary processing 82.3 89.0 77.9 82.8 85.8 88.1 -.2 .5 .4 .1 Advanced processing 80.7 83.5 76.2 79.0 79.7 81.8 .2 .9 -.2 -.6 Durable manufacturing 79.1 84.0 73.7 78.0 80.8 83.4 -.1 1.1 .1 .0 Lumber and products 24 83.1 93.3 76.3 86.0 90.4 91.4 .2 -1.3 -.7 -.1 Furniture and fixtures 25 81.7 86.8 71.0 78.3 79.9 84.5 -.6 .7 -1.1 -1.8 Stone, clay, and glass products 32 77.9 83.8 71.5 76.4 79.4 81.3 -.1 .9 .8 1.9 Primary metals 33 80.0 92.8 74.0 81.9 88.0 91.0 -.4 -.3 -1.4 -.4 Iron and steel 331,2 79.7 95.7 72.1 82.3 90.0 90.1 .0 .3 -1.6 -2.0 Raw steel 79.3 92.7 71.4 82.1 90.3 91.1 .0 .3 1.9 3.2 Nonferrous 333-6,9 80.8 88.7 75.0 81.4 85.6 92.3 -.8 -.9 -.7 1.8 Fabricated metal products 34 77.3 82.0 71.8 76.6 79.7 84.1 -.2 2.1 .9 .3 Industrial machinery and equipment .. 35 80.9 84.0 72.5 77.6 84.9 89.5 1.1 .4 -.8 .2 Computer and office equipment 357 80.6 84.4 64.5 74.2 86.6 88.0 1.1 -.2 -.8 1.0 Electrical machinery 36 80.4 84.9 76.6 80.3 84.5 89.0 -.8 .7 .4 -1.2 I Transportation equipment 37 75.0 84.4 70.2 75.6 75.6 74.7 -.3 2.5 .8 1.2 Motor vehicles and parts 371 75.7 85.1 57.6 75.9 84.4 84.1 .3 1.0 .0 .4 Autos and light trucks2 89.1 53.3 75.8 86.4 84.6 -.3 -.1 .8 2.1 Aerospace and miscellaneous 372-6,9 75.7 88.4 79.4 75.3 65.5 63.5 .9 4.1 1.3 1.9 Instruments 38 82.1 81.2 76.7 77.4 74.7 76.5 .6 1.5 2.1 2.3 Miscellaneous 39 75.5 80.1 73.5 73.4 73.8 75.9 .6 -1.5 -1.4 -1.0 Nondurable manufacturing 83.5 86.7 80.4 82.8 82.4 83.9 .0 .0 -.2 -1.0 | Foods 20 82.3 83.3 80.5 81.1 81.0 81.5 -.3 .2 1.5 1.2 Tobacco products 21 91.3 102.4 77.1 90.4 75.6 87.4 -2.2 -2.1 -2.9 -3.1 I Textile mill products 22 86.1 92.1 78.9 88.8 88.5 89.9 .4 -1.2 -1.3 -2.3 Apparel products 23 81.1 84.2 75.1 80.1 79.1 81.0 .2 -.4 -.7 -1.9 Paper and products 26 89.7 94.8 86.5 87.7 92.5 93.2 .2 .0 1.3 .6 Printing and publishing 27 86.3 92.3 78.7 80.2 78.7 80.0 .2 -1.5 -3.5 -4.3 Chemicals and products 28 80.0 85.9 78.9 80.9 80.7 81.6 -.4 .1 -.1 -1.8 Petroleum products 29 85.5 88.5 83.7 89.1 91.8 91.1 -.8 -1.2 -1.4 -.9 I Rubber and plastics products 30 83.9 90.5 78.4 86.1 87.5 90.6 .1 3.5 3.4 2.2 Leather and products 31 82.0 83.8 74.7 84.1 82.4 83.6 -1.7 2.2 .2 -.5 Mining 87.3 86.5 86.0 87.6 88.1 89.9 -.8 .1 .3 .9 Metal mining 10 78.2 87.9 80.6 85.9 85.1 81.9 .6 .0 -5.1 -1.3 Coal mining 12 86.9 91.4 82.9 83.1 79.5 84.2 .0 .0 -.1 -.1 Oil and gas extraction 13 88.0 86.1 86.8 89.1 90.5 91.9 -1.1 -.8 -.1 .1 Stone and earth mineral 14 84.2 90.0 79.4 84.3 86.6 90.5 1.6 4.8 5.4 7.3 Utilities 86.7 92.6 83.2 86.4 86.5 87.5 .1 .2 .4 .3 1 Electric 491,3pt 88.8 94.8 86.5 88.1 87.4 88.9 .2 .1 .3 -.2 Gas 492,3pt 82.5 85.5 68.3 80.4 82.9 82.6 .0 .3 .6 1.9 I Aggregates, excluding computer and office equipment Total index 81.6 85.0 78.3 81.1 82.1 84.2 -.2 .4 .1 -.3 1 Manufacturing 80.9 85.3 77.0 80.3 81.4 83.5 -.1 .6 .2 -.3 1. Standard Industrial Classification. generally bottomed out. The monthly highs and lows are specific to each 2. Series begins in 1977. series, and all did not occur in the same month. NOTE. The "high" columns refer to periods in which utilization generally peaked; the "low" columns refer to recession years in which utilization Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1995 "Business vehicles" series, which was formerly an barrels. A single monthly series based on shipindividual IP series based on heavy and medium ments of metal cans now represents all of SIC trucks and a share of light trucks, has been sepa- 341—metal cans and shipping containers. The rated into two individual series, one for medium annual levels of this series have been adjusted to and heavy trucks and the other for business light reflect production of cans, barrels, and other metal trucks. Each of these series is based on monthly shipping containers. assemblies in units. The weight associated with medium and heavy truck production in the index reflects the higher prices of these vehicles relative New Data in the Revised Production Indexes to prices for light trucks. Second, the separate series for metal barrels has The new estimates of production incorporate prebeen deleted because the Census Bureau eliminated liminary results of the 1992 Census of Manufacits quarterly Current Industrial Report for metal tures, which in combination with estimates of out- 6. Value added and annual proportions in industrial production, by major industry group Previous Revised SSIICC IInndduussttrryy ggrroouupp ccooddee11 1987 1992 1993 1987 1992 1992 1993 value-added IP IP value-added value-added IP IP proportion proportion proportion proportion proportion index proportion Total index 100.0 100.0 100.0 100.0 100.0 107.6 100.0 Manufacturing 84.3 84.5 84.9 84.3 85.5 108.0 85.9 Primary processing 27.1 26.4 26.3 27.1 26.5 104.6 26.5 Advanced processing 57.1 58.1 58.6 57.1 59.0 109.7 59.3 Durable manufacturing 46.5 46.7 47.9 46.5 45.1 109.3 46.0 Lumber and products 24 2.1 1.9 1.9 2.1 2.0 95.8 2.0 Furniture and fixtures 25 1.5 1.3 1.4 1.5 1.4 99.1 1.4 Stone, clay, and glass products 32 2.4 2.2 2.1 2.4 2.1 95.3 2.1 Primary metals 33 3.3 3.2 3.2 3.3 3.1 101.9 3.1 Iron and steel 331,2 1.9 1.9 1.9 1.9 1.7 105.1 1.8 Raw steel .1 .1 .1 .1 .1 101.2 .1 Nonferrous 333-6,9 1.4 1.3 1.3 1.4 1.4 97.6 1.3 Fabricated metal products 34 5.4 4.9 4.9 5.4 5.0 98.8 5.1 Industrial machinery and equipment .. 35 8.5 9.9 11.1 8.5 7.9 124.6 8.6 Computer and office equipment 357 2.3 3.7 4.7 2.3 1.7 172.8 2.2 Electrical machinery 36 6.9 7.5 8.0 6.9 7.3 121.9 8.0 Transportation equipment 37 9.9 9.6 9.3 9.9 9.6 105.1 9.3 Motor vehicles and parts 371 4.8 4.8 5.2 4.8 4.8 107.4 5.2 Autos and light trucks 2.5 2.4 2.6 2.5 2.5 101.9 2.7 Aerospace and miscellaneous 372-6,9 5.1 4.8 4.1 5.1 4.8 103.0 4.1 Instruments 38 5.1 5.1 4.8 5.1 5.4 106.3 5.2 Miscellaneous 39 1.3 1.3 1.2 1.3 1.3 106.3 1.3 Nondurable manufacturing 37.8 37.8 37.0 37.8 40.5 106.5 39.9 Foods 20 8.8 8.9 8.6 8.8 9.4 107.0 9.3 Tobacco products 21 1.0 1.0 .8 1.0 1.6 96.5 1.4 Textile mill products 22 1.8 1.8 1.8 1.8 1.8 103.9 1.7 Apparel products 23 2.3 2.0 2.0 2.3 2.2 95.0 2.1 Paper and products 26 3.6 3.7 3.7 3.6 3.6 108.9 3.6 Printing and publishing 27 6.5 6.1 6.0 6.5 6.8 97.2 6.6 Chemicals and products 28 8.8 9.4 9.3 8.8 9.9 114.7 9.9 Petroleum products 29 1.3 1.3 1.3 1.3 1.4 102.1 1.4 Rubber and plastics products 30 3.2 3.3 3.4 3.2 3.5 115.6 3.6 Leather and products 31 .3 .3 .2 .3 .3 89.0 .3 Mining 8.0 7.4 7.0 8.0 6.8 98.9 6.5 Metal mining 10 .3 .5 .5 .3 .4 163.8 .4 Coal mining 12 1.2 1.3 1.2 1.2 1.0 108.2 .9 Oil and gas extraction 13 5.8 5.1 4.8 5.8 4.7 93.2 4.5 Stone and earth minerals 14 .7 .6 .6 .7 .6 99.0 .6 Utilities 7.7 8.1 8.1 7.7 7.7 111.9 7.7 Electric 491,3pt 6.1 6.4 6.3 6.1 6.1 111.7 6.1 Gas 492,3pt 1.6 1.7 1.7 1.6 1.6 112.7 1.6 1. Standard Industrial Classification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: A Revision 25 put from the 1991 Annual Survey of Manufactures portion of mining industries for 1992 and 1993; (ASM), are the most important sources of the data (2) revisions to monthly input data and output used in the revised annual indexes of production in series based on monthly input measures; and manufacturing. After deflation with revised BEA (3) new seasonal adjustment factors fitted through price indexes, these data indicate that manufactur- June 1994 or later. ing output increased about 4 percent from 1991 to Input measures, either monthly production 1992—about a percentage point more than was worker hours or kilowatt hours of electricity conpreviously reported. sumed by industry, are used to estimate monthly The Bureau of the Census conducts a manufac- production indexes for more than half of industrial turing census every five years and an annual survey production. The input-based series were revised in in each of the four years between the censuses. three ways. First, the monthly data for hours of The annual surveys are probability-based samples production workers were revised by the Bureau of designed to represent the entire manufacturing uni- Labor Statistics to reflect the benchmarking of verse. Although they collect some of the same monthly employment data to the number of industry statistics as the census, coverage in the employees covered by unemployment insurance in annual surveys erodes between economic censuses, March 1993. The benchmarking raised employand successive annual estimates increasingly ment in manufacturing and mining. Second, the understate levels of manufacturing activity. As a data for consumption of electric power by industry result, measures of change in a series from an ASM were revised to reflect some final figures that were year to the following census year (such as 1991 to previously estimated, some SIC reclassification of 1992) are overstated unless a correction for the sales by utilities, and some new data on cogenerashortfall, or "drift," in the annual survey is made. tion of electricity. Third, new productivity factors In conjunction with a revision of industrial pro- were applied to input data since 1991, based on duction, capacity, and capacity utilization pub- productivity trends derived from annual input and lished in May 1993, Federal Reserve staff con- output data through 1992. ducted research to assess the likely size and the Monthly physical output measures in tons, barannual and industry composition of shortfalls in rels, and so on have also been updated. For many ASM output estimates from 1988 to 1991.4 The series, the monthly product data are not comprework yielded explicit ASM "drift" assumptions for hensive and may cover only part of the output of an each year from 1988 to 1991, which were incorpo- industry. In such cases, the updated monthly prodrated in that IP revision. In the aggregate, these uct data are adjusted to annual levels by using more assumptions appear close to the Bureau of the comprehensive annual indexes of output such as Census's preliminary estimate of the actual short- those based on the Annual Survey and Census of fall in the annual surveys.5 The final Census tabula- Manufactures. tions and research required to determine the final annual and industry composition of the total shortfall will not be available for another year. Revised Estimates of Industrial Capacity The revisions to the individual production indexes also incorporate (1) monthly, quarterly, and The capacity indexes, which are designed to annual physical product data that were not avail- accompany the production indexes, have also been able in time for inclusion in the monthly publica- revised. The new IP indexes as well as updated tions during the past year, particularly data for a capital stocks and the latest utilization rates from various sources were key factors in updating the capacity indexes. The latest Census survey of 4. Carol Corrado and Joe Mattey, "Use of Census Data in manufacturing plant utilization, a major source, Benchmarking Manufacturing IP," memorandum (Board of Goverprovides utilization rates through only the fourth nors of the Federal Reserve System, Division of Research and Statistics, April 1993). quarter of 1992. Census estimates for 1993 and 5. David Cartwright and Brian Greenberg, "Annual Survey of 1994 will not be available until late 1995. Nonethe- Manufactures/Census of Manufactures Drift Evaluation," paper less, some industries provide utilization rates as presented to the Census Advisory Committee of Professional Assowell as output and capacity data expressed in physiciations (September 1994). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1995 cal units, and these data were updated for a number into aggregate indexes are the same weights that of industries. The revised data cover such items as are used to combine series in the production index. raw steel, copper, some chemicals, the assembly of For the period since 1987, value-added proportions automobiles and light trucks, and the generation of for 1987 are used from 1987 to 1992 and 1992 electricity. proportions for 1992 forward. The linking of each Updated measures of real net capital stock for aggregate index to form a continuous time series manufacturing have been estimated by the per- expressed as a percentage of 1987 output involves petual inventory method. Elements included in calculating a constant, called a link factor, that these estimations are (1) time series of investment shifts the level of the 1992-based index to the level in new equipment and structures by three-digit of the 1987-based index in the January 1992 link manufacturing industries; (2) corresponding de- period. Output and capacity indexes for each aggrecompositions of the annual investment data into gate industry group are independently linked, and twenty-eight asset types; (3) asset-type deflators the link factor for each is independently calculated. and service lives; and (4) estimates of losses in For the most part, the link factors for output and capital efficiency due to discards and economic capacity are nearly the same. When they differ, decay as assets age. such differences can affect the level of utilization Revisions to the growth of constant-dollar net for the industry group. In particular, linking tends capital stocks since 1990 are the result of incorpo- to raise or lower utilization rates when (1) the rating preliminary current-dollar expenditures on relative prices (and the value-added weights) of new capital by industry from the 1992 Census of series, such as computers, certain metals, or crude Manufactures, revised estimates by the Bureau of oil, change significantly and (2) the utilization rate Economic Analysis of both current-dollar new in- of the affected component series is noticeably vestment and related price deflators by asset type different from the utilization rate of the group of for 1990 through the third quarter of 1994, and which the affected series is a part. revised estimates for 1993 and 1994 of investment To avoid any distortion of utilization rates caused in new plant and equipment by manufacturing by linking aggregate indexes in January 1992, the industries. Taken together, this new information led level of linked capacity in 1992 was raised or to higher estimates of the growth of the real capital lowered relative to linked output so that the final stock for the 1992-94 period. utilization rate in 1992 is restored to the appropriate, unlinked rate. The adjustment to capacity was then distributed evenly between the appropriate Weights, Linking, and Utilization 1987 and 1992 levels so that the "correct" utiliza- The value-added proportions that are applied to the tion rates are shown for the base years and no individual capacity indexes when they are summed discontinuities in capacity result. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

27 Industrial Production and Capacity Utilization for November 1994 Released for publication December 14 weather. Motor vehicle production, which had been lackluster during the first few months of the new Industrial production rose 0.5 percent in November model year, increased nearly 3 percent. The output after a similar gain in October. The increase in of business equipment other than motor vehicles output was broadly based, apart from a decline in again advanced noticeably, and the production of production at utilities because of unseasonably mild construction supplies posted a sizable gain. The Industrial production indexes Twelve-month percent change Twelve-month percent change Materials Products Nondurable manufacturing 1989 1990 1991 1992 1993 1994 1995 1989 1990 1991 1992 1993 1994 1995 Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 — Total industry Capacity 140 — Manufacturing Capacity — 140 " " 120 - —— - 120 100 100 ~,—-——^^ Production Production 80 80 I II 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing — Utilization — 90 Utilization 90 w -- 80 80 70 70 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1981 1983 1985 1987 1989 1991 1993 1995 1981 1983 1985 1987 1989 1991 1993 1995 All series are seasonally adjusted. Latest series, November. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1995 Industrial production and capacity utilization, November 1994 Industrial production, index, 1987=100 Percentage change CCaatteeggoorryy 11999944 1994' NNoovv.. 11999933 ttoo Aug.' Sept.' Oct.' NOV.P Aug.r Sept.' Oct.' NOV.P NNoovv.. 11999944 Total 119.1 119.0 119.6 120.2 .8 -.1 .5 .5 5.7 Previous estimate 119.1 119.1 119.8 .7 .0 .6 Major market groups Products, total2 116.7 116.4 116.9 117.4 .5 -.2 .4 .5 4.6 Consumer goods 113.8 113.1 113.0 113.6 .4 -.6 -.2 .6 2.7 Business equipment 148.9 149.2 151.2 152.2 1.4 .2 1.3 .7 10.1 Construction supplies 108.2 108.5 109.1 109.9 .3 .2 .6 .8 8.8 Materials 122.8 123.0 123.8 124.5 1.2 .2 .6 .6 7.4 Major industry groups Manufacturing 120.9 120.9 121.6 122.6 .9 .0 .6 .8 6.7 Durable 127.0 127.3 128.3 129.7 1.4 .2 .8 1.1 8.9 Nondurable 114.0 113.8 114.2 114.6 .4 -.2 .4 .4 4.2 Mining 100.0 100.1 99.7 99.1 -.2 .2 -.4 -.6 .9 Utilities 118.8 117.5 116.7 114.8 -.1 -1.1 -.7 -1.6 -1.6 Capacity utilization, percent 1993 1994 Average, Low, High, 1967-93 1982 1988-89 Nov. Aug.r Sept.r Oct. Nov.? Total 81.9 71.8 84.9 823 84.5 84.3 84.5 84.7 2.7 Previous estimate 84.5 84.3 84.6 Manufacturing 81.2 70.0 85.2 81.4 83.8 83.6 83.9 84.4 3.0 Advanced processing 80.7 71.4 83.5 79.7 82.1 81.9 82.1 82.5 3.5 Primary processing . 82.3 66.8 89.0 85.8 88.3 88.2 88.5 89.2 2.0 Mining 87.3 80.6 86.5 87.9 89.7 89.8 89.4 88.9 -.2 Utilities 86.7 76.2 92.6 87.0 87.8 86.7 86.0 84.6 1.2 NOTE. Data seasonally adjusted or calculated from seasonally adjusted 2. Contains components in addition to those shown, monthly data. r Revised, 1. Change from preceding month. p Preliminary. output of materials also rose sharply, led by gains ment excluding autos and trucks rose 0.6 percent, in the production of parts for motor vehicles and as the output of industrial machinery and informaequipment. Industrial production in November, at tion equipment, particularly computers, increased 120.2 percent of its 1987 average, was 5.7 percent further; during the past twelve months, the output higher than it was a year earlier. The substantial in this sector has risen 11 percent. The production growth in output boosted capacity utilization to of materials advanced 0.6 percent. The most siz- 84.7 percent, its highest level since April 1989. able gains were in durables, particularly those When analyzed by market groups, the data show related to the motor vehicle and equipment industhat the output of consumer goods rose 0.6 percent tries. Among nondurables, the production of paper in November after declines in each of the two and textiles rose, while the output of chemicals was previous months. The production of durables other little changed. The output of energy materials was than motor vehicles rose 1 percent, an increase reduced further, in part because of the weathermainly reflecting a pickup in the output of appli- related decline in electricity generation. ances. The production of nondurable consumer When analyzed by industry group, the data show goods has been sluggish in recent months; on bal- that manufacturing output rose 0.8 percent in ance, the production of most major categories has November to a level 6.7 percent higher than that of changed little. The production of business equip- a year ago. Gains in production were most pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: A Revision 29 nounced among durables. Factory utilization was industries rose 0.4 percentage point, to 82.5 per- 84.4 percent, up 3 percentage points over the past cent, but remains about 1 percentage point below year but still about 3A percentage point below its its 1988-89 high. Among advanced-processing recent peak in January 1989. The utilization rate in industries, the operating rate for motor vehicles and the primary-processing industries rose 0.7 percent- parts increased sharply. Utilization rates for indusage point, to 89.2 percent, just a bit above the high trial and electrical machinery rose significantly as reached in January 1989. Lumber, petroleum, non- well. Operating rates at utilities fell 1.4 percentage ferrous metals, and rubber and plastics products points. Operating rates at mines also declined last contributed most to the current gain; operating month but were still a bit above those of a year rates in all of these industries are above their earlier. • 1988-89 highs. Utilization for advanced-processing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Announcements CHANGE IN THE DISCOUNT RATE special cash services, and for electronic connections to the Federal Reserve. The 1995 fee schedules are available from the Reserve Banks. The Federal Reserve Board on November 15,1994, approved an increase in the discount rate from In 1995, total costs for priced services, including 4 percent to 43A percent, effective that day. float, a portion of special project costs, and the private sector adjustment factor (PSAF), are pro- In a related move, the Federal Open Market jected to be $727.4 million. Total revenue is pro- Committee decided that the increase in the discount jected to be $763.4 million, resulting in net income rate should be reflected fully in interest rates in of $36.0 million, compared with a targeted return reserve markets. on equity of $31.5 million. These measures were taken against the background of evidence of persistent strength in At the same time, the Board has approved the economic activity and high and rising levels of 1995 PSAF for Reserve Bank priced services of resource utilization. In these circumstances, the $94.7 million, a decrease of $8.9 million, or 8.6 Federal Reserve views these actions as necessary to percent, from the $103.6 million targeted in 1994. keep inflation contained and thereby foster sustain- The PSAF is an allowance for the taxes that able economic growth. would have been paid and the return on capital that would have been earned had the Federal Reserve's In taking the discount rate action, the Board priced services been provided by a private business approved requests submitted by the boards of direcfirm. tors of the Federal Reserve Banks of New York, St. Louis, Kansas City, and San Francisco. The Board subsequently approved similar requests by the boards of directors of the Federal Reserve INCREASES IN AMOUNTS OF TRANSACTION Banks of Boston, Cleveland, Richmond, Atlanta, ACCOUNTS COVERED BY RESERVE Minneapolis, and Dallas, effective November 16, REQUIREMENTS, RESERVABLE LIABILITIES, 1994; and by the boards of directors of the Federal AND CUTOFF LEVELS FOR DEPOSIT Reserve Banks of Philadelphia and Chicago, effec- REPORTING tive November 17. The discount rate is the interest The Federal Reserve Board announced on Novemrate that is charged depository institutions when ber 22, 1994, an increase from $51.9 million to they borrow from their District Federal Reserve $54.0 million in the net transaction accounts to banks. which a 3 percent reserve requirement will apply in 1995. AVAILABILITY OF 1995 FEE SCHEDULES FOR The Board also changed from $4.0 million to SERVICES PROVIDED BY THE FEDERAL $4.2 million the amount of reservable liabilities of RESERVE BANKS each depository institution that is subject to a reserve requirement of 0 percent. The Federal Reserve Board announced on Novem- Also, the Board increased the deposit cutoff levber 22, 1994, the 1995 fee schedules for services els that are used in conjunction with the exemption provided by the Federal Reserve Banks. The fees level to determine the frequency and detail of become effective January 3, 1995. deposit reporting required for each institution from The fee schedules apply to check, automated $55.0 million to $55.4 million for nonexempt clearinghouse, funds transfer and net settlement, depository institutions and from $44.8 million to book-entry securities, noncash collection, and $45.1 million for exempt depository institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

31 DAYLIGHT OVERDRAFTS (8:30:00 a.m. eastern time to 6:30:59 p.m. eastern time), for a total of 601 measurements per operat- Shown below are data on daylight overdrafts of ing day. Positive balances in reserve or clearing depository institutions. The data cover two-week accounts do not offset overdrafts in any of the periods ending on the date indicated and are not calculations described below. seasonally adjusted. Daylight overdrafts are nega- For further information on daylight overdrafts tive balances in the reserve or clearing accounts of all depository institutions at Federal Reserve and the Federal Reserve's policies, see the pam- Banks. Daylight overdrafts are measured at the end phlet, "Overview of the Federal Reserve's Payof each minute (hh:mm:59) during the standard ments System Risk Policy," available from any operating day of the Fedwire funds transfer system Federal Reserve Bank. Daylight overdrafts of depository institutions at Federal Reserve Banks and related fees Millions of dollars except as noted Biweekly average of daily figures DDaayylliigghhtt oovveerrddrraafftt ffeeeess DDaattee ((ddoollllaarrss))11 Average p o e v r e - r m d i r n a u ft t 2 e daylight Peak daylight overdraft3 Compos o i v t M e e r E p d M e r a O a k f t4 d aylight 1993 Oct. 27 80,076 144,874 211,581 Nov. 10 78,824 137,840 203,237 Nov. 24 79,617 143,844 215,721 Dec. 8 67,646 115,256 181,468 Dec. 22 63,765 109,192 176,177 1994 Jan. 5 59,295 105,591 168,008 Jan. 19 68,949 125,443 193,981 Feb. 2 72,184 128,501 191,464 Feb. 16 72,093 130,320 190,618 Mar. 2 71,756 124,206 192,453 Mar. 16 64,533 113,606 180,466 Mar. 30 68,204 120,015 185,443 Apr. 13 63,216 112,120 175,475 Apr. 27 699,681 38,923 64,234 127,458 May 11 799,911 44,009 71,069 143,452 May 25 871,823 46,397 78,689 154,562 June 8 759,520 45,343 75,772 150,160 June 22 745,570 42,299 72,397 142,774 July 6 718,203 43,903 72,143 147,034 July 20 762,412 43,160 69,086 143,019 Aug. 3 764,542 43,144 68,477 144,863 Aug. 17 750,314 42,443 72,889 143,469 Aug. 31 767,339 43,273 73,181 147,016 Sept. 14 652,983 41,419 72,359 140,205 Sept. 28 655,227 39,381 65,659 138,858 Oct. 12 661,073 42,796 66,703 144,311 Oct. 26 696,804 41,106 66,946 144,713 Nov. 9 680,599 40,448 68,574 142,201 Nov. 23 660,887 43,247 71,137 154,614 1. For the two-week period ending on the date shown. On April 14,1994, 2. The average per-minute daylight overdraft for a given day is the sum of the Federal Reserve began charging depository institutions a fee for daylight average per-minute daylight overdrafts for all institutions on that day. See overdrafts in their reserve or clearing accounts. note 1 for the definition of an institution's average per-minute daylight For each day, the chargeable overdraft is the institution's average per- overdraft. minute daylight overdraft for that day less a daily deductible amount. An 3. The peak daylight overdraft for a given day is the greatest value institution's average per-minute daylight overdraft for a given day is the sum reached by the sum of the daylight overdrafts for all institutions at the end of of its overdrafts at the end of each minute in the standard operating day of the each operating minute of that day. Fedwire funds transfer system divided by the number of such minutes. The 4. The composite peak daylight overdraft for a given day is the sum of deductible amount for each institution is 10 percent of its risk-based capital. each institution's largest end-of-minute daylight overdraft on that day, The rate assessed against the chargeable overdraft is equivalent to an annual regardless of the time at which it was incurred. This measure is provided for rate of 24 basis points (0.24 percent) times the fraction of the 24-hour day in consistency with previously released data on daylight overdrafts and will not which Fedwire operates (currently 10/24). be routinely provided in the future. Two-week fees of $25 or less are waived; neither waived fees nor daylight overdraft penalty fees are included in these totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1995 ISSUANCE OF GUIDELINES RELATED TO REAL give financial institutions more flexibility in identi- ESTATE APPRAISALS fying consumer accounts on receipts at automated teller machines (ATMs). On November 7, 1994, the Federal Reserve Board As amended by the interim rule, which took and other financial institutions regulatory agencies effect December 1, 1994, the regulation will no issued guidelines to address supervisory matters longer require that terminal receipts uniquely idenrelating to real estate appraisals and evaluations tify the consumer's account or card. This change used to support real estate related financial will allow institutions to truncate the number on transactions. the receipt and help protect consumers and finan- The guidelines provide guidance to examining cial institutions against fraudulent fund withdrawpersonnel and federally regulated institutions about als. In some fraud schemes, criminals are manufacprudent appraisal and evaluation policies and prac- turing counterfeit ATM cards using valid account tices. numbers from receipts discarded by consumers at The Financial Institutions Reform, Recovery, and ATMs. They then withdraw funds by using the Enforcement Act of 1989 (FIRREA) requires the personal identification number that, without the agencies to adopt regulations on the preparation consumer's knowledge, they have observed the and use of appraisals by federally regulated finan- consumer enter at the ATM. cial institutions. These jointly issued guidelines supersede each of the agencies' appraisal and evaluation guidelines PROPOSED ACTIONS issued in 1992. The Federal Reserve Board on November 29,1994, published for public comment proposed changes to REGULATION E: INTERIM RULE its Regulation Z (Truth in Lending), requiring new disclosures for reverse mortgages as set forth in the The Federal Reserve Board adopted on Novem- Home Ownership and Equity Protection Act of ber 19, 1994, an interim rule to amend its Regula- 1994. Comments were requested by January 18, tion E (Electronic Fund Transfers). The rule will 1995. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

33 Minutes of the Federal Open Market Committee Meeting Held on September 27,1994 A meeting of the Federal Open Market Com- Mr. Ettin, Deputy Director, Division of Research mittee was held in the offices of the Board of and Statistics, Board of Governors Mr. Slifman, Associate Director, Division of Governors of the Federal Reserve System in Wash- Research and Statistics, Board of Governors ington, D.C., on Tuesday, September 27, 1994, at 9:00 a.m. Mr. Madigan, Associate Director, Division of Monetary Affairs, Board of Governors Present: Mr. Hooper, Assistant Director, Division of Mr. Greenspan, Chairman International Finance, Board of Governors Mr. McDonough, Vice Chairman Ms. Low, Open Market Secretariat Assistant, Mr. Blinder Division of Monetary Affairs, Board of Mr. Broaddus Governors Mr. Forrestal Mr. Jordan Ms. Browne, Messrs. Davis, Dewald, Lang, Mr. Kelley Rolnick, Rosenblum, and Vander Wilt, Mr. LaWare Senior Vice Presidents, Federal Reserve Mr. Lindsey Banks of Boston, Kansas City, St. Louis, Mr. Parry Philadelphia, Minneapolis, Dallas, and Ms. Phillips Chicago respectively Ms. Yellen Mr. Sniderman, Vice President, Federal Reserve Bank of Cleveland Messrs. Hoenig, Melzer, and Moskow, and Ms. Krieger, Assistant Vice President, Federal Ms. Minehan, Alternate Members of the Reserve Bank of New York Federal Open Market Committee Secretary's Note: Messrs. Boehne, McTeer, and Stern, Presidents of Advice had been received of the election of the Federal Reserve Banks of Philadelphia, Michael H. Moskow by the boards of directors of the Dallas, and Minneapolis respectively Federal Reserve Banks of Cleveland and Chicago as alternate member of the Federal Open Market Commit- Mr. Kohn, Secretary and Economist tee for the period September 1, 1994, through Decem- Mr. Bernard, Deputy Secretary ber 31, 1994, and that he had executed his oath of office. Mr. Coyne, Assistant Secretary Mr. Gillum, Assistant Secretary Mr. Mattingly, General Counsel By unanimous vote, the minutes of the meeting Mr. Patrikis, Deputy General Counsel of the Federal Open Market Committee held on Mr. Prell, Economist August 16, 1994, were approved. Mr. Truman, Economist By unanimous vote, the Committee elected Frederic S. Mishkin as Associate Economist from Messrs. Beebe, Goodfriend, Lindsey, Mishkin, Promisel, Simpson, Stockton, and the Federal Reserve Bank of New York, to serve Ms. Tschinkel, Associate Economists until the next election at the first meeting of the Committee after December 31,1994, with the under- Ms. Lovett, Manager for Domestic Operations, standing that in the event of the discontinuance of System Open Market Account his official connection with the Federal Reserve Mr. Fisher, Manager for Foreign Operations, Bank of New York he would cease to have any System Open Market Account Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1995 official connection with the Federal Open Market workweek of production or nonsupervisory work- Committee. ers declined in August from July's relatively high The Manager for Foreign Operations reported on level, but for the two months combined the average developments in foreign exchange markets during hours worked was well above the second-quarter the period since the August meeting. There were no level. Both household employment and the labor System open market transactions in foreign cur- force surged in August, and the civilian unemployrencies during this period, and thus no vote was ment rate was unchanged at 6.1 percent. required of the Committee. Industrial production rose sharply in August The Manager for Domestic Operations reported after sizable gains in previous months. The August on developments in domestic financial markets and advance reflected a large increase in manufacturing on System open market transactions in government output that was partly offset by declines in mining securities and federal agency obligations during the production and electricity generation; much of the period August 16, 1994, through September 26, strength in manufacturing resulted from a large rise 1994. By unanimous vote, the Committee ratified in the output of motor vehicles stemming from these transactions. unusually rapid retooling for the new model year. The Committee then turned to a discussion of the Elsewhere in manufacturing, production of office economic and financial outlook and the implemen- and computing equipment continued to expand tation of monetary policy over the intermeeting briskly, and output of industrial equipment was up period ahead. A summary of the economic and significantly. Total utilization of industrial capacity financial information available at the time of the rose further in August from already high levels. meeting and of the Committee's discussion is Consumer spending remained on a solid upward provided below, followed by the domestic policy trend. Retail sales rose considerably in August after directive that was approved by the Committee and holding steady in July. Sales of goods other than issued to the Federal Reserve Bank of New York. motor vehicles registered sizable increases in both The information reviewed at this meeting sug- July and August. Sales of motor vehicles, which gested that the pace of economic expansion had been constrained in recent months by shortages remained substantial, though it appeared to have of popular domestic models, rebounded in August. moderated slightly in recent months. Final sales, Housing starts in July and August averaged slightly especially of consumer goods, had firmed during less than their second-quarter rate. Single-family the summer months while inventory investment starts had leveled Off in recent months after declinapparently had slowed after a second-quarter surge. ing earlier in the year; multifamily starts, though Manufacturing activity, bolstered by a pickup in erratic from month to month, had been drifting production of motor vehicles, had been rising higher. briskly, and the trend of payroll hiring remained The limited data available for the third quarter strong. Increases in broad indexes of consumer and suggested that growth of real business fixed investproducer prices had been somewhat larger in recent ment, though still strong, continued to slow from months, and prices of materials had remained under the very rapid pace of 1993. Shipments of nonconsiderable upward pressure. defense capital goods declined in July, offsetting Nonfarm payroll employment advanced appre- much of a large June advance. However, orders for ciably further in August, though at a somewhat less nondefense capital goods were up significantly on rapid rate than the average pace in earlier months balance in June and July, pointing to continued of the year. The slowdown in hiring in August was brisk expansion in business spending on durable concentrated in retail trade, where employment was equipment. Nonresidential construction activity little changed after large gains in the two preceding increased further in July, and permits for such months, and in construction, where it fell slightly. construction remained on a mild uptrend. In manufacturing, employment was up consider- The growth in business inventories slowed markably after essentially no change in July; while edly in July after surging in the second quarter. The much of the strength was related to a pickup in July deceleration reflected a sizable reduction in the production of motor vehicles, hiring was up in retail inventories, principally automotive and gena number of other industries as well. The average eral merchandise stocks. For the retail sector as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 35 whole, the inventory-to-sales ratio declined sharply directive any presumption about further adjustin July to about the middle of the range seen in ments to policy during the intermeeting period. recent years. At the wholesale level, inventories Accordingly, the directive stated that in the context increased substantially, both in July and over the of the Committee's long-run objectives for price second quarter, and the overall inventory-to-sales stability and sustainable economic growth, and givratio edged up in July toward the middle of the ing careful consideration to economic, financial, range for this ratio in recent years. Inventory and monetary developments, slightly greater reinvestment also picked up in manufacturing, where serve restraint or slightly lesser reserve restraint much of the July accumulation represented stocks would be acceptable during the intermeeting of materials, supplies, and work-in-progress. The period. The reserve conditions associated with this run-up in stocks was accompanied by a drop in directive were expected to be consistent with modfactory shipments, and as a result, the inventory- est growth in M2 and M3 over coming months. shipments ratio recorded an unusually steep rise. Immediately after the conclusion of the August The nominal deficit on U.S. trade in goods and meeting, the Board of Governors approved a services widened substantially further in July after V^-percentage-point increase in the discount rate to a large increase in the second quarter. The value of a level of 4 percent. The Committee permitted the exports of goods and services slipped in July from full amount of the increase to pass through to a relatively high level in June, while the value of interest rates in the market for reserves, and the imports in July changed little from June. Economic federal funds rate rose about Vi percentage point to activity in all of the foreign G-7 industrial coun- an average of around 43A percent. As indicated in tries except Japan expanded rapidly in the second an announcement released on the day of the meetquarter, and available indicators suggested that ing, the Committee did not anticipate that further strong growth continued on average in the third policy tightening was likely to be needed for a quarter. In Japan, activity contracted in the second time, given the substantial nature of the policy quarter, reflecting weakness in consumption and move. Accordingly, open market operations over business investment; the limited data available for the intermeeting period were conducted with a the third quarter suggested that growth in that coun- view to maintaining the less accommodative try might have resumed. degree of pressure on reserve positions imple- Consumer prices rose a little faster in July and mented just after the August meeting, and the fed- August than their average pace for the first half of eral funds rate remained near 43A percent. In accorthe year. The recent pickup in consumer inflation dance with the usual cresting of seasonal demands reflected large increases in energy prices as well as for discount credit at this time of the year, adjustsomewhat higher food prices; excluding the food ment plus seasonal borrowing rose over much of and energy components, consumer price advances the period but began to edge lower subsequently. had remained moderate. Prices rose briskly at the Borrowing averaged near anticipated levels. producer level in July and August as prices of Most market interest rates were up somewhat on finished energy goods surged and prices of finished balance since the August meeting. Short-term rates, foods turned up after declining over the first half of which had risen before the meeting in anticipation the year. For items other than finished foods and of a smaller policy move, increased modestly furenergy, the increase over the July-August period ther after the Federal Reserve tightened and then was a little faster than in the first half of the year. changed little over the next several weeks. Subse- Recent data indicated little change in wage trends. quently, however, these rates began to move higher Average hourly earnings of production or nonsu- in response to incoming economic data that were pervisory workers rose in August at about the rate seen as pointing to the potential for greater inflaobserved over the previous twelve months. tion in the future and hence to further firming in At its meeting on August 16, 1994, the Commit- reserve conditions. Long-term yields fell after the tee adopted a directive that called for increasing policy tightening, but these declines were erased somewhat the degree of pressure on reserve posi- within a few days, and rates later rose noticeably tions, taking account of a possible rise in the dis- further in response to the incoming data. Most count rate. The Committee did not include in the major indexes of equity prices were up on balance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1995 over the intermeeting period despite price declines was expected to remain well above the depressed near the end of the period. levels reached in recent years. With the economy The trade-weighted value of the dollar in terms operating close to its long-run potential, no further of the other G-10 currencies depreciated somewhat reduction in the core rate of inflation was anticiover the intermeeting period. Bearish sentiment pated over the forecast horizon. Consumer price toward the dollar in the foreign exchange markets inflation was projected to be elevated over the near appeared to be influenced importantly by continu- term—by some pass-through of the ongoing run-up ing concerns about inflation trends in the United in materials prices and by higher import prices— States compared with those in other major indus- before settling down again. trial countries. In the Committee's discussion of current and M2 and M3 declined in August after expanding prospective economic conditions, members commoderately in July, and data available for Septem- mented on continuing indications of a robust ber pointed to little further change in either aggre- expansion in business activity, with output near gate. The August decline in M2 reflected weakness maximum sustainable levels. They still viewed sigin most of its liquid components that may have nificant slowing in the pace of the expansion as a been induced to a considerable extent by the rise, reasonable expectation, though they acknowledged which began early this year, in the opportunity that signs of such slowing currently were limited costs of holding such accounts. The decline in M3 and in particular that the most recent data indicated was associated with a sharp drop in institution-only a greater probability of somewhat more strength in money funds in response to the increase in market aggregate demand than had appeared to be develyields, but the weakness in this broader aggregate oping during the late spring and early summer. The was limited by the brisk issuance of large- policy tightening actions implemented earlier in the denomination time deposits as banks continued to year seemed to have elicited only a mild response rely on managed liabilities to fund credit growth. thus far in interest-sensitive sectors of the econ- For the year through August, M2 and M3 grew at omy. However, much of the retarding effects of rates slightly above the lower ends of their respec- those actions, including the recent sizable tightentive ranges for 1994. Total domestic nonflnancial ing in August, probably had not yet been felt in the debt continued to expand at a moderate rate in economy. In light of the strength of aggregate recent months. demand and lags in the effects of policy, the risks The staff forecast prepared for this meeting sug- of some rise in inflation rates probably had gested that growth in economic activity would slow increased. How large this rise might be or when it appreciably over the next several quarters, drop- might be reversed was very difficult to predict at ping briefly below the rate of increase in the this point. However, indications of a persisting economy's potential output. According to a staff pickup in inflation would be a matter of consideranalysis, the economy already was operating at its able concern, and further developments would need long-run capacity, and the forecast assumed that to be monitored with special care in light of the monetary policy would not accommodate any con- Committee's longstanding commitment to containtinuing tendency for aggregate demand to expand ing inflation and moving over time toward price at a pace that could foster sustained higher infla- stability to foster the maximum, sustainable perfortion. Growth in consumer expenditures was pro- mance of the economy. jected to moderate next year as spending on con- In their review of developments across the sumer durables lost some momentum in the context nation, members commented on high levels of busiof diminishing pent-up demands, the rise in bor- ness activity in many regions and many of them rowing costs, and smaller gains in income. After an referred to increasing reports of scarcities of speextended period of very rapid increases, growth in cific types of labor resources. After softening earbusiness fixed investment also was expected to lier in many areas, business conditions appeared to slow appreciably, partly reflecting less favorable have strengthened in a number of regions during financial conditions and partly the slower pace of recent weeks while displaying little change or conoutput growth. Homebuilding would be damped by tinued moderate growth elsewhere. Robust expanhigher financing costs, though activity in this sector sion in manufacturing activity, especially in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 37 motor vehicle and related industries, was a notable able, but some members questioned whether the feature of recent business developments. On the expected cutback in inventory accumulation would financial side, the overall expansion of credit had be sizable over the near term. Continuing strength remained moderate, but many members stressed in new orders and anecdotal reports did not point to the ready availability of financing from increas- a desire to reduce inventories and suggested that ingly aggressive bank lenders. Moreover, despite much of the second-quarter buildup probably had higher interest rates, capital markets were provid- been intended. Indeed, in the context of increasing ing continued support to a wide variety of borrow- backlogs and lagging deliveries that pointed to ers. The constraints on the availability of credit and growing capacity constraints, many business firms the reluctance of many borrowers to incur new might seek to build "safety stocks" to avoid supply debt, factors that had tended to retard the recovery disruptions that would interfere with production during its earlier stages, had given way to a finan- schedules. At the same time, the trend toward "just cial climate that might even be providing an extra in time" inventory management—even if tempoimpetus to spending. rarily arrested as safety stocks were increased— With regard to the outlook for activity in key would help to limit a potentially excessive buildup sectors of the economy, consumer spending had in inventories that would present a threat later to been more buoyant than expected over recent the sustainability of the expansion. months and members saw such spending as likely Members cited anecdotal evidence tending to to be reasonably well maintained. Some modera- support statistical indications of some weakening tion in its growth over the quarters ahead seemed in housing markets, and they generally anticipated likely, however, as pent-up demands increasingly that the rise that had occurred in mortgage interest were satisfied and housing-related purchases of rates would exert a further damping effect on housconsumer durables tended to moderate. Members ing activity over the year ahead. However, against cited anecdotal evidence of fairly brisk retail sales the background of the still relatively favorable in many areas recently and associated optimism affordability of housing and the likelihood of some among retail business contacts. Recent survey re- further pent-up demand, only a moderate drop in sults indicated that consumer sentiment remained overall homebuilding activity seemed likely. favorable. Sales of motor vehicles were expected A number of members expressed the view that to continue the improvement noted in August as the external sector was likely to contribute to the supply shortages were met through increased expansion of domestic economic activity in light of production. the depreciation in the value of the dollar and Business fixed investment was viewed as likely indications of stronger economic growth in foreign to rise substantially further over the next several industrial nations. However, relatively rapid expanquarters, but the rate of growth had been moderat- sion in foreign economic activity would add to ing this year and probably would diminish further pressures on world commodity prices at least for a in conjunction with the projected slowing in overall time. One member expressed concern about the demand. The expansion in expenditures for busi- potential, albeit uncertain, effects on the exchange ness equipment had slowed considerably this year value of the dollar of developments unrelated to the from an extremely rapid rate in 1993 and could be conduct of monetary policy, such as the ongoing expected to moderate somewhat further. At the trade negotiations with Japan and forthcoming same time, nonresidential construction was slowly elections in Germany. trending higher as firms facing capacity constraints In their discussion of various factors bearing on sought to expand their production facilities. the outlook for inflation, members noted that some The prospects for inventory investment remained measures of inflation had picked up recently and a key uncertainty in the outlook in that develop- that many private forecasters anticipated higher ments in this sector could well have an important inflation in 1995 than in 1994. The worsening of bearing on the extent of the anticipated slowing in inflation could perhaps be viewed as reflecting the expansion of overall economic activity over the increasing capacity constraints in the face of recent next few quarters. The surge in inventory invest- growth in overall demand at a pace above the ment in the second quarter clearly was unsustain- economy's long-run potential. From this perspec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1995 tive, the future path of inflation would depend further tightening. Even so, the ongoing inflow of importantly on the extent to which the expansion in information on the performance of the economy overall activity would in fact abate from an unsus- continued to indicate a significant potential for tainable pace. Some members expressed particular higher inflation down the road, and for many concern that if above-trend growth did not moder- members this suggested that additional monetary ate soon, existing inflationary pressures and infla- restraint could well be needed at some time. A key tionary expectations would quickly become more uncertainty in this regard related to the restraining pronounced and inflation would gather momentum. effects of the policy moves implemented earlier Thus far, however, price pressures remained con- this year; these actions appeared to have exerted centrated in the early stages of production. As less restraint to date than had been anticipated, but evidenced by broad measures of prices and anec- appreciable lagged effects from those actions— dotal information obtained from numerous busi- indeed, perhaps a large part of those effects—could ness contacts, the pass-through of the higher costs still be expected. At this time, it was extremely of materials to the prices of final goods had been difficult to evaluate whether the earlier tightening muted in what business executives continued to moves were exerting a lesser effect than usual or it describe as highly competitive markets. The ability simply was more delayed, or whether the members of business firms to hold down price increases in might have misjudged the underlying strength of turn reflected to a marked degree their successful the expansion. In the view of many members, the efforts to control unit costs through ongoing gains information that would become available during in productivity. Moreover, with profit margins cur- the intermeeting period should provide a firmer rently at high levels, business firms facing competi- basis forjudging the course of the economy and the tive market conditions had some leeway to absorb risks of greater inflation. Should incoming informarising costs. Increasingly tight labor markets in tion point to a greater likelihood that price presmany parts of the country had not resulted in sures would intensify, the Committee would need higher overall wage inflation, but members re- to act promptly and forcefully to avert an upward ported some upward pressure on the wages of ratcheting of inflationary expectations and actual certain categories of workers in strong demand. inflation that would be difficult to reverse. Conse- One member expressed the view that continued quently, while views differed with regard to the moderation in price and wage increases also might likely need for some policy tightening over the reflect in some measure a shift in price and wage- weeks immediately ahead, the members generally setting behavior attributable to the credibility of the supported a shift from the symmetry in the August Committee's anti-inflationary stance in recent directive to asymmetry toward restraint. Some years. A number of members commented that the members indicated that they could accept an asymsluggish-to-moderate growth of a wide variety of metric directive, but they expressed misgivings money and credit measures provided some assur- about the use of such an instruction in the directive ance that, to date, monetary policy had not laid the because they felt it was subject to misunderstandbasis for a sustained upturn in inflation. Nonethe- ing in financial markets and could add to uncerless, the members concluded that the potential for tainty about Committee intentions. One member additional inflation remained substantial and, from favored an immediate move to somewhat greater a monetary policy standpoint, rendered especially reserve restraint because the available evidence in urgent the ongoing assessment of inflation trends. his view already suggested an upturn in inflationary expectations and the prospect of a significant In the Committee's discussion of policy for the rise in inflation. period ahead, most of the members agreed on the desirability of maintaining a steady policy course, In the course of the Committee's discussion, a at least for the near term. In light of the appreciable number of members commented that the behavior tightening of policy approved in August, the mem- of the monetary and credit aggregates should be bers had anticipated that no further policy change taken into account in the evaluation of the current was likely to be required for a period, and at this stance of monetary policy. While various money juncture they generally continued to feel that the and related measures had for many years proved recent evidence did not warrant an immediate unreliable to a greater or lesser extent in gauging Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 39 economic prospects, the weak growth in a wide Orders for nondefense capital goods point to a continued array of these measures could not be entirely disre- strong expansion in spending on business equipment; garded as a possible indicator of the degree of permits for nonresidential construction remain on a mild uptrend. Inventory accumulation appears to have modermonetary restraint and argued for caution in impleated recently after surging in the second quarter. The menting any further policy tightening. One memnominal deficit on U.S. trade in goods and services ber noted, however, that the slow growth in the widened in July from its second-quarter average. Prices narrow measures of reserves and money followed of materials have remained under upward pressure, and an extended period of rapid expansion and their increases in broad indexes of consumer and producer prices have been somewhat larger in recent months. recent weakness might not be indicative of con- On August 16, 1994, the Board of Governors apstrained liquidity at this point. Moreover, the ready proved an increase in the discount rate from 3l/2 to availability of bank credit and the receptivity of 4 percent, and the Committee agreed that this increase financial markets more generally argued that many would be allowed to show through completely to interest borrowers, including small and medium-sized busi- rates in reserve markets. Most market interest rates are nesses, currently had access to ample financing. up somewhat on balance since the August meeting. The trade-weighted value of the dollar in terms of the other At the conclusion of the Committee's discussion, G-10 currencies depreciated somewhat over the interall but one of the members indicated that they meeting period. could support a directive that called for maintain- M2 and M3 declined in August after expanding moding the existing degree of pressure on reserve posi- erately in July; for the year through August, M2 and M3 tions and that included a bias toward the possible grew at rates slightly above the bottom of their ranges for 1994. Total domestic nonfinancial debt has continued firming of reserve conditions during the intermeetto expand at a moderate rate in recent months. ing period. Accordingly, in the context of the Com- The Federal Open Market Committee seeks monetary mittee's long-run objectives for price stability and and financial conditions that will foster price stability sustainable economic growth, and giving careful and promote sustainable growth in output. In furtherance consideration to economic, financial, and monetary of these objectives, the Committee at its meeting in developments, the Committee decided that some- July reaffirmed the ranges it had established in February for growth of M2 and M3 of 1 to 5 percent and 0 to what greater reserve restraint would be acceptable 4 percent respectively, measured from the fourth quarter or slightly lesser reserve restraint might be acceptof 1993 to the fourth quarter of 1994. The Committee able during the intermeeting period. The reserve anticipated that developments contributing to unusual conditions contemplated at this meeting were velocity increases could persist during the year and that expected to be consistent with modest growth in money growth within these ranges would be consistent with its broad policy objectives. The monitoring range the broader monetary aggregates over the balance for growth of total domestic nonfinancial debt was mainof the year. tained at 4 to 8 percent for the year. For 1995, the At the conclusion of the meeting, the Federal Committee agreed on tentative ranges for monetary Reserve Bank of New York was authorized and growth, measured from the fourth quarter of 1994 to the directed, until instructed otherwise by the Commit- fourth quarter of 1995, of 1 to 5 percent for M2 and 0 to 4 percent for M3. The Committee provisionally set the tee, to execute transactions in the System Account associated monitoring range for growth of domestic nonin accordance with the following domestic policy financial debt at 3 to 7 percent for 1995. The behavior of directive: the monetary aggregates will continue to be evaluated in the light of progress toward price level stability, move- The information reviewed at this meeting suggests ments in their velocities, and developments in the econthat the pace of economic expansion, though perhaps omy and financial markets. moderating slightly in recent months, remains substan- In the implementation of policy for the immediate tial. Nonfarm payroll employment advanced appreciably future, the Committee seeks to maintain the existing further in August, and the civilian unemployment rate degree of pressure on reserve positions. In the context of was unchanged at 6.1 percent. Reflecting strength in the Committee's long-run objectives for price stability motor vehicles, industrial production rose sharply in and sustainable economic growth, and giving careful August after posting sizable gains in other recent consideration to economic, financial, and monetary demonths, and capacity utilization moved up further from velopments, somewhat greater reserve restraint would or already high levels. Retail sales were up considerably in slightly lesser reserve restraint might be acceptable in August, boosted by a rebound in sales of durable goods, the intermeeting period. The contemplated reserve conincluding motor vehicles. Housing starts rose in August ditions are expected to be consistent with modest growth but were unchanged from their second-quarter level. in M2 and M3 over the balance of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1995 Votes for this action: Messrs. Greenspan, McDon- ing some monetary policy tightening would incur ough, Blinder, Forrestal, Jordan, Kelley, LaWare, a substantial risk of a further increase in inflation- Lindsey, and Parry and Mses. Phillips and Yellen. ary expectations and could make it more costly Vote against this action: Mr. Broaddus. to achieve the Committee's longer-term antiinflationary goals. Mr. Broaddus dissented because he believed that It was agreed that the next meeting of the Coma prompt move to somewhat greater monetary mittee would be held on Tuesday, November 15, restraint was needed at this point. In his view, 1994. the current stance of monetary policy was overly The meeting adjourned at 1:00 p.m. accommodative in light of the signs of increasing price pressures and rising inflationary expectations that were associated with the continuing strength of Donald L. Kohn the economic expansion and high levels of capacity Secretary utilization. In this situation, a delay in implement- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

41 Legal Developments FINAL RULE—AMENDMENT TO REGULATION A (b) Extended credit. For extended credit to depository institutions under section 201.3(c), for credit outstanding for The Board of Governors is amending 12 C.F.R. Part 201, more than 30 days, a flexible rate will be charged that takes its Regulation A (Extensions of Credit by Federal Reserve into account rates on market sources of funds, but in no case Banks; Change in Discount Rate), to reflect its approval of will the rate charged be less than the rate for adjustment an increase in the basic discount rate at each Federal Re- credit, as set out in section 201.51, plus one-half percentage serve Bank. The Board acted on requests submitted by the point. At the discretion of the Federal Reserve Bank, the Boards of Directors of the twelve Federal Reserve Banks. 30-day time period may be shortened. Effective November 18, 1994, 12 C.F.R. Part 201 is amended as follows. The rate changes for adjustment credit were effective on the dates specified in 12 C.F.R. 201.51. FINAL RULE—AMENDMENT TO REGULATION D Part 201—Extensions of Credit by Federal Reserve The Board of Governors is amending 12 C.F.R. Part 204, Banks (Regulation A) its Regulation D (Reserve Requirements of Depository Institutions), to increase the amount of transaction accounts 1. The authority citation for 12 C.F.R. Part 201 continues to subject to a reserve requirement ratio of three percent, as read as follows: required by section 19(b)(2)(C) of the Federal Reserve Act, from $51.9 million to $54.0 million of net transaction Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, accounts. This adjustment is known as the low reserve 348 et seq., 357, 374, 374a and 461. tranche adjustment. The Board has increased from $4.0 million to $4.2 million the amount of reservable liabil- 2. Section 201.51 is revised to read as follows: ities of each depository institution that is subject to a reserve requirement of zero percent. This action is required Section 201.51—Adjustment credit for depository by section 19(b)(l 1)(B) of the Federal Reserve Act, and the institutions. adjustment is known as the reservable liabilities exemption adjustment. The Board is also increasing the deposit cutoff The rates for adjustment credit provided to depository insti- levels that are used in conjunction with the reservable tutions under section 201.3(a) are: liabilities exemption to determine the frequency of deposit reporting from $55.0 million to $55.4 million for nonexempt depository institutions and from $44.8 million to Federal Reserve Bank Rate Effective $45.1 million for exempt institutions. (Nonexempt institu- Boston 4.75 November 16, 1994 tions are those with total reservable liabilities exceeding New York 4.75 November 15, 1994 $4.2 million while exempt institutions are those with total Philadelphia 4.75 November 17, 1994 Cleveland 4.75 November 16, 1994 reservable liabilities not exceeding $4.2 million.) Thus non- Richmond 4.75 November 16, 1994 exempt institutions with total deposits of $55.4 million or Adanta 4.75 November 16, 1994 Chicago 4.75 November 17, 1994 more will be required to report weekly while nonexempt St. Louis 4.75 November 15, 1994 institutions with total deposits less than $55.4 million may Minneapolis 4.75 November 16, 1994 Kansas City 4.75 November 15, 1994 report quarterly. Similarly, exempt institutions with total Dallas 4.75 November 16, 1994 San Francisco 4.75 November 15, 1994 deposits of $45.1 million or more will be required to report quarterly while exempt institutions with total deposits less than $45.1 million may report annually. Effective December 20, 1994, 12 C.F.R. Part 204 is 3. Section 201.52(b) is revised to read as follows: amended as follows. For depository institutions that report Section 201.52—Extended credit for depository weekly, the low reserve tranche adjustment and the reservinstitutions. able liabilities exemption adjustment will be effective on the reserve computation period that begins Tuesday, December 20,1994, and on the corresponding reserve maintenance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1995 period that begins Thursday, December 22, 1994. For insti- munity Development and Regulatory Improvements Act of tutions that report quarterly, the low reserve tranche adjust- 1994, which contains a number of measures to reduce the ment and the reservable liabilities exemption adjustment burden of federal regulation on depository institutions. will be effective on the reserve computation period that Effective November 10, 1994, 12 C.F.R. Part 208 is begins Tuesday, December 20,1994, and on the correspond- amended to read as follows: ing reserve maintenance period that begins Thursday, January 19, 1995. For all depository institutions, the deposit Part 208—Membership of State Banking Institutions cutoff level will be used to screen institutions in the second in the Federal Reserve System (Regulation H) quarter of 1995 to determine the reporting frequency for the twelve-month period that begins in September 1995. 1. The authority citation for Part 208 is revised to read as follows: Part 204—Reserve Requirements of Depository Institutions (Regulation D) Authority: 12 U.S.C. 36, 248(a), 248(c), 321-338a, 371d, 461, 481-486, 601, 611, 1814, 1823(j), 1828(o), 1831o, 1. The authority citation for Part 204 continues to read as 1831p-l, 3105, 3310, 3331-3351 and 3906-3909; 15 U.S.C. follows: 78b, 781(b), 781(g), 781(j), 78o-4(c)(5), 78q, 78q-l and 78w; 31 U.S.C. 5318. Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105. 2. Section 208.10 is amended as follows: a. The section heading is revised; 2. In section 204.9 paragraph (a) is revised to read as b. Paragraphs (a) and (b) are removed; and follows: c. The paragraph designation and heading for paragraph (c) are removed. Section 204.9—Reserve requirement ratios. The revised Section heading reads as follows: (a)(1) Reserve percentages. The following reserve ratios are prescribed for all depository institutions, Edge and agree- Section 208.10—Waiver of reports of affiliates. ment corporations, and United States branches and agencies of foreign banks: 3. In Subpart A, footnotes 11 through 13 are redesignated as footnotes 9 through 11, respectively. Category Reserve Requirement1 4. Section 208.17 is amended by removing the undesignated Net transaction accounts $0 to $54.0 million 3 percent of amount text following paragraph (a)(2). Over $54.0 million $1,620,000 plus 10 percent of amount over $54.0 million Nonpersonal time deposits 0 percent Eurocurrency liabilities 0 percent ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT 1. Before deducting the adjustment to be made by the next paragraph. Orders Issued Under Section 3 of the Bank Holding (2) Exemption from reserve requirements. Each deposi- Company Act tory institution, Edge or agreement corporation, and U.S. branch or agency of a foreign bank is subject to a zero Abrams Centre Bancshares, Inc., percent reserve requirement on an amount of its transac- Dallas, Texas tions accounts subject to the low reserve tranche in paragraph (a)(1) of this section not in excess of $4.2 Order Approving the Formation of a Bank Holding million determined in accordance with section 204.3 Company (a)(3) of this part. Abrams Centre Bancshares, Inc., Dallas, Texas ("Abrams Centre"), has applied under section 3 of the Bank Holding FINAL RULE—AMENDMENT TO REGULATION H Company Act ("BHC Act") (12 U.S.C. § 1842) to acquire Abrams Centre National Bank, Dallas, Texas ("Bank"), and The Board of Governors is amending 12 C.F.R. Part 208, thereby become a bank holding company.1 its Regulation H (Membership of State Banking Institutions in the Federal Reserve System), to remove the requirement 1. Abrams Centre will acquire Bank by merging Bank with and into New that a state member bank publish its reports of condition. Abrams Bank, Dallas, Texas, an interim, wholly owned subsidiary of Abrams The amendment implements section 308 of the Riegle Com- Centre. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 Notice of the application, affording interested persons an to officers and directors.5 For these reasons, and based on all opportunity to submit comments, has been published the facts of record, the Board concludes that the financial (59 Federal Register 12,927 (1994)). The time for filing and managerial resources and future prospects of Abrams comments has expired, and the Board has considered the Centre and Bank, and other supervisory factors the Board application and all comments received in light of the factors must consider under section 3 of the BHC Act, are consisset forth in section 3(c) of the BHC Act. tent with approval of this proposal. Abrams Centre is a nonoperating company formed for In acting on an application to acquire a depository instituthe purpose of acquiring Bank. Bank is the 455th largest tion under the BHC Act, the Board must consider the commercial banking organization in Texas, controlling de- convenience and needs of the communities to be served, posits of $41.3 million, representing less than 1 percent of and take into account the records of the relevant depository total deposits in commercial banks in the state.2 Based on institutions under the Community Reinvestment Act all the facts of record, the Board believes that consumma- (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the tion of the proposal would not result in any significantly federal financial supervisory agencies to encourage finanadverse effects on competition or the concentration of bank- cial institutions to help meet the credit needs of the local ing resources in any relevant banking market. Accordingly, communities in which they operate, consistent with the safe the Board concludes that competitive considerations are and sound operation of such institutions. To accomplish this consistent with approval of this proposal. end, the CRA requires the appropriate federal supervisory The Board has received comments from an individual authority to "assess the institution's record of meeting the ("Protestant") about the acquisition debt proposed to be credit needs of its entire community, including low- and incurred in this case. Protestant also alleges that manage- moderate-income neighborhoods, consistent with the safe ment officials have improperly borrowed from Bank, and and sound operation of such institution," and to take that that these loans have prevented Bank from adequately meet- record into account in its evaluation of bank holding coming the credit needs of its communities.3 The Board has pany applications.6 carefully reviewed these comments in light of all facts of The Board has carefully reviewed the CRA performance record, including responses by Bank and information from record of Bank, the comments received on this application, Bank's primary regulator, the Office of the Comptroller of Bank's response to those comments, and all other relevant the Currency ("OCC"). facts of record, in light of the CRA, the Board's regulations, The Board notes that Bank is currently in compliance and the Statement of the Federal Financial Supervisory Agenwith all applicable capital requirements, and that Abrams cies Regarding the Community Reinvestment Act ("Agency Centre would be in compliance with all applicable capital CRA Statement").7 The Agency CRA Statement provides that requirements upon consummation of this proposal. Abrams a CRA examination is an important and often controlling Centre's projections for retiring the debt to be assumed as factor in the consideration of an institution's CRA record and part of this transaction are consistent with the Board's that these reports will be given great weight in the applications policy relating to the assumption of debt by small bank process.8 The Board notes that Bank received a "satisfactory" holding companies in formation.4 rating from the OCC at its most recent examination for CRA The record in this case indicates that Bank has appropri- performance as of August 1,1994. Moreover, the record in this ate procedures in place to ensure compliance with Federal case indicates that the loans Bank has extended to insiders, laws and regulations, including regulations relating to loans which account for an insignificant amount of Bank's total loan to officers and directors. Recent examinations of Bank by portfolio,9 have not hindered Bank's efforts to meet the credit the OCC indicate that Bank is well managed and that Bank needs of its community. is in compliance with applicable laws and regulations. Addi- For the reasons discussed above, the Board concludes, on tionally, these examinations indicate that Bank has not the basis of all the facts of record, that considerations violated any applicable law or regulation regarding lending relating to the convenience and needs of the community to be served, including Bank's record of performance under the CRA, are consistent with approval of this proposal. 2. State data are as of June 30, 1993. Based on the foregoing and other facts of record, the 3. Protestant also challenges the competence and experience of two pro- Board has determined that the application should be, and posed directors on the basis of civil actions filed over a twenty-year period against these individuals as a result of their personal business dealings. There is no evidence in the record of this case that indicates that the involvement of these individuals in these actions, almost all of which have been resolved, reflects adversely on their competence, experience or integrity as directors of 5. The OCC has been apprised of the allegations made by Protestant Abrams Centre. pertaining to excessive or inappropriate lending to Bank officers and direc- Additionally, Protestant asserts that Abrams Centre did not provide notice tors, and has indicated to the Board that there is no evidence to substantiate of this proposal in the community in which Protestant resides. The record in these allegations. this case indicates that in addition to publishing notice of this proposal in the 6. 12 U.S.C. § 2903. Federal Register, the local newspaper publication requirements set forth in 7. 54 Federal Register 13,742 (1989). the Board's regulations were properly followed by the applicant in this case. 8. Id. at 13,745. See 12 C.F.R. 262.3(b). 9. Loans to officers, directors, and shareholders constituted approximately 4. See 12 C.F.R. Part 225, Appendix C. 1 percent of Bank's average total loans as of June 30, 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 1995 hereby is, approved.10 The Board's approval is expressly Regions is the largest commercial banking organization conditioned on compliance with all the commitments in Alabama, controlling deposits of approximately $6.8 bilmade by Abrams Centre in connection with this applica- lion, representing approximately 18 percent of the total tion. For purposes of this action, the commitments and deposits in commercial banking organizations in the state.1 conditions relied on in reaching this decision shall be Bank is the eighth largest commercial banking organizadeemed to be conditions imposed in writing by the Board tion in the state, controlling deposits of approximately and, as such, may be enforced in proceedings under $324.1 million, representing less than 1 percent of total applicable law. deposits in commercial banks in the state. Upon consum- This transaction shall not be consummated before the mation of this proposal, Regions would control deposits fifteenth calendar day following the effective date of this of approximately $7.1 billion, representing 18.9 percent order, or later than three months after the effective date of of total deposits in commercial banking organizations in this order, unless such period is extended for good cause by the state. the Federal Reserve Bank of Dallas, acting pursuant to Regions and Bank compete directly in the Montgomery, delegated authority. Alabama, banking market.2 Regions is the largest commer- By order of the Board of Governors, effective Novem- cial banking organization in the market, controlling deposits ber 15, 1994. of $906.2 million, representing 28.7 percent of total deposits in commercial banking organizations in the market.3 Voting for this action: Chairman Greenspan, Vice Chairman Bank is the fourth largest commercial banking organization Blinder, and Governors Kelley, LaWare, Phillips, and Yellen. Ab- in the market, controlling deposits of $324.1 million, represent and not voting: Governor Lindsey. senting 10.3 percent of total deposits in commercial banking organizations in the market. Upon consummation of this JENNIFER J. JOHNSON proposal, Regions would control deposits of $1.2 billion, Deputy Secretary of the Board representing 39 percent of total deposits in commercial banking organizations in the market. The Herfindahl- Regions Financial Corporation Hirschman Index ("HHI") would increase by 588 points to Birmingham, Alabama 1987.4 A number of factors indicate that the increase in the Order Approving Acquisition of a Bank concentration level in the Montgomery banking market, as measured by the HHI, tends to overstate the competitive Regions Financial Corporation, Birmingham, Alabama effect of this proposal. For example, 15 commercial banking ("Regions"), a bank holding company within the meaning organizations, including the eight largest banking organizaof the Bank Holding Company Act ("BHC Act"), has tions in Alabama, would remain as competitors in the applied under section 3 of the BHC Act (12 U.S.C. § 1842) market.5 Moreover, the Montgomery banking market has a to acquire Union Bank & Trust Company, Montgomery, number of features that make it attractive for entry.6 Two Alabama ("Bank"). Notice of the application, affording interested persons an opportunity to submit comments, has been published 1. All banking data are as of June 30, 1994. (59 Federal Register 42,048 (1994)). The time for filing 2. The Montgomery, Alabama, banking market is approximated by Montcomments has expired, and the Board has considered the gomery, Autaga, Lowndes, and Elmore Counties, and the town of Tallassee, all in Alabama. application and all comments received in light of the factors 3. No thrift institutions operate in the Montgomery banking market. set forth in section 3(c) of the BHC Act. 4. 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 markets, the Justice Department is likely 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 acquisition generally will not be challenged (in the absence 10. The Board has carefully considered Protestant's request for a public of other factors indicating anticompetitive effects) unless the post-merger hearing or meeting in connection with this application. Section 3(b) of the HHI is at least 1800 and the merger increases the HHI by more than 200 BHC Act does not require the Board to hold a public hearing or meeting on points. The Justice Department has stated that the higher than normal HHI an application unless the appropriate supervisory authority for the bank to be thresholds for screening bank mergers for anticompetitive effects implicitly acquired makes a timely written recommendation of denial of the applica- recognize the competitive effect of limited-purpose lenders and other nontion. In this case, the OCC has not recommended denial of the proposal. depository financial entities. Generally, under the Board's rules, the Board may, in its discretion, hold a 5. Bank's competitive position in this market appears to be declining. public hearing or meeting on an application to clarify factual issues related to Bank's total assets have declined by almost 22 percent from year-end 1990 to the application and to provide an opportunity for testimony, if appropriate. mid-year 1994. The dollar volume of loans that Bank made during this 12 C.F.R. 262.3(e) and 262.25(d). In the Board's view, all interested parties period declined by 24.3 percent and its commercial lending declined by have had ample opportunity to submit their views, and written submissions approximately 41 percent. have been received. Based on all the facts of record, the Board has deter- 6. The Montgomery MSA is the third largest of the state's ten MSA mined that a public meeting or hearing is not necessary to clarify the factual banking markets in amount of deposits. The Montgomery MSA's ratios of record in this application, or otherwise warranted in this case, and the request per capita income and deposits per banking office exceed the average of other for a public hearing or meeting on this application are denied. Alabama MSAs and the averages for the state as a whole. In addition, recent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 45 de novo banks were chartered in the Montgomery banking Union Planters Corporation market in 1989 and 1992. In addition, two out-of-market Memphis, Tennessee firms entered the Montgomery market in 1992 and 1994 through the acquisition of existing banking firms that had Order Approving the Acquisition of a Bank Holding the majority of their assets in this market. Legal barriers to Company entry into the market are low, because Alabama permits statewide branching and is part of the Southeast regional Union Planters Corporation, Memphis, Tennessee ("Union banking pact, which allows bank holding companies in 12 Planters"), a bank holding company within the meaning of other southeastern states and the District of Columbia to the Bank Holding Company Act ("BHC Act"), has applied acquire banks in Alabama. under section 3 of the BHC Act (12U.S.C. § 1842) to The Department of Justice also has considered the potential acquire all of the voting shares of Mid South Bancshares, anticompetitive impact of the proposal, and has not indicated Inc., Paragould, Arkansas ("Mid South"), and thereby indithat the transaction is likely to result in significantly adverse rectly acquire Security Bank, Paragould, Arkansas, and competitive effects. After considering the number of competi- Farmers and Merchants Bank, Reyno, Arkansas.1 tors that would remain in the market, the attractiveness of the Notice of the applications, affording interested persons an market for entry, and all other facts of record, the Board opportunity to submit comments, has been published concludes that consummation of this proposal would not result (59 Federal Register 41,763 (1994)). The time for filing in a significantly adverse effect on competition or the concen- comments has expired, and the Board has considered the tration of banking resources in the Montgomery banking mar- applications and all comments received in light of the ket, or in any relevant banking market. factors set forth in section 3(c) of the BHC Act. The financial and managerial resources and future pros- Section 3(d) of the BHC Act, the Douglas Amendment, pects of Regions and Bank, and the other supervisory prohibits the Board from approving an application by a factors that the Board must consider under section 3 of the bank holding company to acquire control of any bank BHC Act, are consistent with approval. Considerations re- outside the bank holding company's home state unless the lating to the convenience and needs of the community to be acquisition is "specifically authorized by the statute laws served also are consistent with approval. of the State in which such bank is located, by language to Based on the foregoing and other facts of record, the that effect and not merely by implication."2 For purposes Board has determined that the application should be, and of the Douglas Amendment, Union Planters' home state hereby is, approved. The Board's approval is expressly is Tennessee. conditioned on compliance with all the commitments made The Board previously has determined that the interstate by Regions in connection with this application. The com- banking statutes of Arkansas permit a Tennessee bank holdmitments and conditions relied on by the Board in reaching ing company to acquire established banking organizations this decision are both deemed to be conditions imposed in in Arkansas.3 Based on all the facts of record, the Board has writing by the Board in connection with its findings and determined that its approval of this proposal is not prohibdecision, and, as such, may be enforced in proceedings ited by the Douglas Amendment. Approval of this proposal under applicable law. is conditioned upon Union Planters receiving all required This transaction shall not be consummated before the state regulatory approvals. thirtieth calendar day following the effective date of this Union Planters, with total deposits of $6.2 billion, controls order, unless such period is shortened with the consent of 43 commercial banks and savings associations in Arkansas, the Attorney General, or later than three months after the Alabama, Kentucky, Mississippi, and Tennessee. Union Planteffective date of this order, unless such period is extended ers is the eighth largest commercial banking organization in for good cause by the Board or by the Federal Reserve Bank Arkansas, controlling approximately $492.8 million in deposof Atlanta, acting pursuant to delegated authority. By order of the Board of Governors, effective November 7, 1994. 1. Union Planters will acquire Mid South by merging it with Union Planters's wholly owned subsidiary, MSB Acquisition Company, Inc., which has applied to become a bank holding company in connection with this Voting for this action: Chairman Greenspan and Governors application. Kelley, Phillips, and Yellen. Absent and not voting: Vice Chairman 2. 12 U.S.C. § 1842(d). A bank holding company's home state is that state Blinder and Governors LaWare and Lindsey. in which the operations of the bank holding company's banking subsidiaries were principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. JENNIFER J. JOHNSON 3. Union Planters Corporation, 76 Federal Reserve Bulletin 474 (1990). Deputy Secretary of the Board Under Arkansas law, a bank holding company within a region that includes Tennessee, may acquire an Arkansas bank, if that state has reciprocal statutes, and the Arkansas bank to be acquired has been in existence and continuously operated for more than ten years. Security Bank and Farmers population growth, deposit growth, and population per banking office ratios and Merchants Bank have been in existence for more than ten years. Ark. in the Montgomery MSA exceed comparable state averages. Code Ann. § 23-32-1802, 1804 (Michie 1994). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1995 its, representing 2.2 percent of total deposits in commercial Orders Issued Under Section 4 of the Bank Holding banks in the state.4 Mid South is the 34th largest commercial Company Act banking organization in Arkansas, controlling approximately $114.4 million in deposits, representing less than 1 percent of CS Holding total deposits in commercial banks in the state. Upon consum- Zurich, Switzerland mation of the proposal, Union Planters would become the sixth largest commercial banking organization in Arkansas, control- Credit Suisse ling 11 banks, with approximately $607.3 million in deposits, Zurich, Switzerland representing 2.8 percent of total deposits in commercial banks in the state. Order Approving Application to Engage De Novo in Union Planters and Mid South do not compete directly in Advisory Activities with Respect to Futures and Options any banking market. Accordingly, consummation of this on Futures and Foreign Exchange proposal would not have a significantly adverse effect on competition or the concentration of banking resources in CS Holding and Credit Suisse, both of Zurich, Switzerland any relevant banking market. ("Applicants"), foreign banks subject to the provisions of The Board also concludes that financial and managerial the Bank Holding Company Act ("BHC Act"), have apresources and future prospects of Union Planters, Mid South, plied, pursuant to section 4(c)(8) of the BHC Act and their respective subsidiary banks, and the other supervi- (12 U.S.C. § 1843(c)(8)), to engage de novo, through their sory factors that the Board must consider under section 3 of the subsidiary, BEA Associates, New York, New York ("Com- BHC Act, are consistent with approval of this proposal. Con- pany"),1 in the following nonbanking activities: siderations relating to the convenience and needs of the com- (i) Acting as a commodity trading adviser ("CTA") in munities to be served also are consistent with approval.5 providing investment advice with respect to futures Based on the foregoing and all other facts of record, the and options on futures on bullion, foreign exchange, Board has determined that the application should be, and government securities, certificates of deposit, money hereby is, approved. The Board's approval is expressly market instruments, and other financial instruments conditioned on compliance with all the commitments made previously approved by the Board,2 pursuant to section by Union Planters in connection with this application. The 225.25(b)(19) of Regulation Y (12 C.F.R. commitments and conditions relied on by the Board in 225.25(b)(19»; and reaching this decision shall be deemed to be conditions (ii) Providing advice and transactional services with imposed in writing by the Board in connection with its respect to foreign exchange, pursuant to section findings and decision, and, as such, may be enforced in 225.25(b)(17) of Regulation Y (12 C.F.R. proceedings under applicable law. 225.25(b)(17)). The acquisition of Mid South shall not be consummated before the thirtieth calendar day following the effective date of Applicants have committed that Company will conduct this order, unless such period is shortened with the consent of these activities in accordance with the provisions and subthe Attorney General, or later than three months after the ject to the limitations of Regulation Y (12 C.F.R. effective date of this order, unless such period is extended for 225.25(b)(19) and 225.25(b)(17)). good cause by the Board or by the Federal Reserve Bank of St. Notice of the application, affording interested persons an Louis, acting pursuant to delegated authority. opportunity to submit comments, has been duly published By order of the Board of Governors, effective Novem- (57 Federal Register 30,737 (1992); 58 Federal Register ber 7, 1994. 32,708 (1993)). The time for filing comments has expired, and the Board has considered the application and all com- Voting for this action: Chairman Greenspan and Governors ments received in light of the factors set forth in section Kelley, Phillips, and Yellen. Absent and not voting: Vice Chairman 4(c)(8) of the BHC Act. Blinder and Governors LaWare and Lindsey. Credit Suisse, with total consolidated assets of approximately $156 billion, is the second largest banking organiza- JENNIFER J. JOHNSON tion in Switzerland and the 36th largest banking organiza- Deputy Secretary of the Board tion in the world.3 In the United States, Credit Suisse 4. Deposit and state data are as of June 30, 1993. These figures are adjusted to reflect mergers approved through August 13, 1994. 1. Applicants own 80 percent of the equity interest in Company, a general 5. Union Planters' record of performance under the Community Reinvest- partnership. The remaining equity interest is owned by BEA Associates, Inc., ment Act (12 U.S.C. § 2901 et seq.) has been reviewed in detail in the order New York, New York, which is wholly owned by its employees. approving the application by Union Planters to acquire Grenada Sunburst 2. See SR Letter 93-27 (May 21,1993). System Corporation, Grenada, Mississippi. See Union Planters Corporation, 3. Asset and ranking data are as of December 31, 1993, and employ 81 Federal Reserve Bulletin 49 (1995). exchange rates then in effect. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 47 operates branches in New York, New York, and Los Ange- Based on all the facts of record, including all the commitles, California, an agency in Miami, Florida, and representa- ments made by Applicants, the Board has determined that tive offices in Atlanta, Georgia; Chicago, Illinois; Houston, the application should be, and hereby is, approved. The Texas; Miami, Florida; and San Francisco, California. In Board's approval is specifically conditioned on Applicants' addition, Applicants engage indirectly in a number of per- compliance with all the commitments made in connection missible nonbanking activities in the United States, and, with this application and with the conditions and limitations pursuant to section 8(c) of the International Banking Act of discussed in this order. The Board's determination also is 1978 (12 U.S.C. § 3106(c)), engage in certain investment subject to all the conditions set forth in Regulation Y, banking and securities brokerage activities through two including those in sections 225.7 and 225.23(b), and to the other companies.4 Board's authority to require such modification or termina- The Board has previously determined by regulation that tion of the activities of a bank holding company or any of the commodity advisory and foreign exchange transactional its subsidiaries as the Board finds necessary to assure comactivities described above are closely related to banking for pliance with, and to prevent evasion of, the provisions of purposes of section 4(c)(8) of the BHC Act.5 In order to the BHC Act and the Board's regulations and orders issued approve this proposal, the Board also must find that the thereunder. For purposes of this action, the commitments performance of the proposed activities by Company "can and conditions relied on in reaching this decision are reasonably be expected to produce benefits to the public ... deemed to be conditions imposed in writing by the Board in that outweigh possible adverse effects, such as undue con- connection with its findings and decision, and, as such, may centration of resources, decreased or unfair competition, be enforced in proceedings under applicable law. conflicts of interests, or unsound banking practices." This transaction shall not be consummated later than 12 U.S.C. § 1843(c)(8). three months after the effective date of this order, unless Based on all the facts of record, including the commit- such period is extended for good cause by the Board or by ments made by Applicants regarding the conduct of the the Federal Reserve Bank of New York, acting pursuant to proposed activities, the Board has determined that the per- delegated authority. formance of the proposed activities by Company can rea- By order of the Board of Governors, effective Novemsonably be expected to produce benefits to the public that ber 1, 1994. would outweigh any possible adverse effects of this proposal. The Board expects that consummation of the pro- Voting for this action: Chairman Greenspan, Vice Chairman posal would provide added service and convenience to Blinder and Governors Kelley, LaWare, Lindsey, Phillips, and Yellen. Applicants' customers and that the de novo entry of Company into the market for the proposed services in the United JENNIFER J. JOHNSON Deputy Secretary of the Board States would increase the level of competition among providers of those services. Moreover, Applicants have com- Huntington Bancshares Incorporated mitted to conduct these activities within the limitations Columbus, Ohio provided in Board regulations. There is no evidence in the record to indicate that consummation of this proposal, sub- Huntington Bancshares Kentucky, Inc. ject to the commitments noted above, would result in signif- Columbus, Ohio icant adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices, that are not out- Order Approving the Acquisition of a Savings Association weighed by the expected public benefits of the proposal. In making this determination, the Board has considered the Huntington Bancshares Incorporated ("Huntington") and its financial and managerial resources of Applicants and its wholly owned subsidiary, Huntington Bancshares Kentucky, subsidiaries, including Company, and the effect of this Inc. ("Huntington Kentucky"), both of Columbus, Ohio, bank proposal upon such resources, and has concluded that these holding companies within the meaning of the Bank Holding factors are consistent with approval of this application.6 Company Act ("BHC Act"), have applied under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of Regulation Y (12 C.F.R. 225.23) to acquire by merger First- Fed Northern Kentucky Bancorp, Inc. ("FirstFed"), and 4. These companies are Swiss American Securities, Inc., and Credit Suisse thereby acquire its wholly owned subsidiary, First Federal Asset Management, Inc., both of New York, New York. Bank for Savings of Northern Kentucky ("Savings Bank"), 5. See 12 C.F.R. 225.25(b)(19) and 225.25(b)(17). 6. See 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve both of Covington, Kentucky.1 Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155 (1987). The Board notes that Applicants' capital ratios satisfy applicable risk-based standards established under the Basle Accord, and are considered equivalent to the capital levels that would be required of a United States 1. Applicant proposes to merge FirstFed into Huntington Kentucky and, banking organization. immediately thereafter, merge Savings Bank into The Huntington Bank, Inc., Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • January 1995 Notice of the application, affording interested persons an Huntington and FirstFed compete directly in the Cincinopportunity to submit comments, has been published nati, Ohio, banking market ("Cincinnati banking market").5 (59 Federal Register 43,586 (1994)). The time for filing After consummation of this proposal, numerous competicomments has expired, and the Board has considered the tors would remain in the market, and the increase in market application and all comments received in light of the public concentration, as measured by the Herfindahl-Hirschman interest factors set forth in section 4(c)(8) of the BHC Act. Index ("HHI"), would not exceed the Department of Justice The Board has determined by regulation that the opera- Merger Guidelines.6 Based on all the facts of record, includtion of a savings association by a bank holding company is ing the number of competitors remaining in the market and closely related to banking for purposes of section 4(c)(8) of Huntington's resulting market share, the Board concludes the BHC Act.2 In making this determination, the Board that the consummation of this proposal would not have a required that savings associations acquired by bank holding significantly adverse effect on competition or the concentracompanies conform their direct and indirect activities to tion of banking resources in the Cincinnati banking market those permissible for bank holding companies under section or in any other relevant banking market. 4(c)(8) of the BHC Act. Huntington has committed to conform all activities of Savings Bank to the requirements Convenience and Needs Considerations of section 4 of the BHC Act and Regulation Y. In considering an application under section 4(c)(8) of the In considering an application to acquire a savings associa- BHC Act, the Board is required to determine whether the tion under section 4 of the BHC Act, the Board reviews the performance of the activity by an affiliate of a holding records of performance of the relevant institutions under the company "can reasonably be expected to produce benefits Community Reinvestment Act (12 U.S.C. § 2901 et seq.) to the public, such as greater convenience, increased compe- ("CRA").7 The Board notes that all of Huntington's subsidtition, or gains in efficiency, that outweigh possible adverse iary banks and savings associations that have been exameffects, such as undue concentration of resources, decreased ined for CRA performance8 received an "outstanding" or or unfair competition, conflicts of interest, or unsound bank- "satisfactory" rating from their primary regulator in their ing practices." 12 U.S.C. § 1843(c)(8). most recent examinations for CRA performance.9 Based on Huntington, with total consolidated assets of $16.4 billion, these and all other facts of record, the Board concludes that controls 10 depository institutions in eight states.3 Huntington is the 21st largest depository organization in Kentucky, controlling $325.4 million in deposits, representing less than 1 percent 5. The Cincinnati banking market is approximated by Clermont and of the total deposits in depository institutions in the state.4 Hamilton Counties and portions of Browne, Butler, and Warren Counties in Ohio; Boone, Campbell, Grant, Kenton, and Pendleton Counties in Ken- FirstFed is the 29th largest depository organization in Ken- tucky; and Dearborn County in Indiana. tucky, controlling $203.2 million in deposits, representing less 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 than 1 percent of the total deposits in depository institutions in between 1000 and 1800 is considered to be moderately concentrated. In such the state. Upon consummation of this proposal, Huntington markets, the Justice Department is likely to challenge a merger that increases would become the 16th largest depository organization in the the HHI by more than 100 points. The Justice Department has informed the Board that a bank merger or acquisition generally will not be challenged (in state, controlling deposits of $528.6 million, representing apthe absence of other factors indicating anticompetitive effects) unless the proximately 1.3 percent of the total deposits in depository post-merger HHI is at least 1800 and the merger increases the HHI by more institutions in Kentucky. than 200 points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders and other non-depository financial institutions. The resulting HHI in the Cincinnati banking market would be 1218, and the change in the HHI caused by this proposal would be de minimis. Covington, Kentucky ("Kentucky Bank"), a wholly owned bank subsidiary 7. The Board previously has determined that the CRA by its terms of Huntington Kentucky. The Federal Deposit Insurance Corporation has generally does not apply to applications by bank holding companies to approved the merger of Savings Bank into Kentucky Bank under the Bank acquire nonbanking companies under section 4(c)(8) of the BHC Act. The Merger Act. Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). The Board also 2. See 12 C.F.R. 225.25(b)(9). has stated that, unlike other companies that may be acquired by bank holding 3. Asset data are as of June 30, 1994. companies under section 4(c)(8) of the BHC Act, savings associations are 4. State deposit data are as of December 31, 1993. In this context, depository institutions, as that term is defined in the CRA, and thus acquisidepository institutions include commercial banks, savings banks, and savings tions of savings associations are subject to review under the express terms of associations. Market share data before consummation are based on calcula- the CRA. Norwest Corporation, 76 Federal Reserve Bulletin 873 (1990). tions in which the deposits of thrift institutions are included at 50 percent. 8. Huntington Federal Savings Bank of Illinois, Chicago, Illinois, was The Board previously has indicated that thrift institutions have become, or chartered December 15, 1993, and has not been examined for CRA perforhave the potential to become, significant competitors of commercial banks. mance by the Office of Thrift Supervision, its primary regulator. See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City 9. In its most recent examination for CRA performance, Huntington's lead Corporation, 70 Federal Reserve Bulletin 743 (1984). Because the deposits bank, The Huntington National Bank, Columbus, Ohio ("Ohio Bank"), of Savings Bank would be transferred to a commercial bank under this received a "satisfactory" rating from its primary regulator, the Office of the proposal, those deposits are included at 100 percent in the calculation of Comptroller of the Currency ("OCC"). The examination, however, identified Huntington's pro forma market share. See Norwest Corporation, 78 Federal certain areas of concern that Ohio Bank has agreed to address completely, Reserve Bulletin 452 (1992); First Bank, Inc., 76 Federal Reserve Bulletin and the Board expects Huntington and Ohio Bank to fully implement 669, 670 n.9 (1990). corrective actions to address these areas of concern. The Board will continue Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 49 considerations relating to the record of performance under Orders Issued Under Sections 3 and 4 of the Bank the CRA are consistent with approval of this application. Holding Company Act The financial and managerial resources of Huntington and its subsidiaries and FirstFed and its subsidiaries also are Union Planters Corporation consistent with approval. The Board also finds that consum- Memphis, Tennessee mation of this proposal is not likely to result in any significantly adverse effects, such as undue concentration of re- Order Approving the Acquisition of a Bank Holding sources, decreased or unfair competition, conflicts of Company interests, or unsound banking practices that are not outweighed by public benefits, such as the added convenience Union Planters Corporation, Memphis, Tennessee ("Union and services to be provided to Savings Bank customers as a Planters"), a bank holding company within the meaning of result of their access to an array of services, programs, and the Bank Holding Company Act ("BHC Act"), has applied locations not currently offered by Savings Bank, that are under section 3 of the BHC Act (12 U.S.C. § 1842) to expected from this proposal. acquire all of the voting shares of Grenada Sunburst System Based on the foregoing and all the facts of record, the Corporation, Grenada, Mississippi ("Grenada"), and thereby Board has determined that the balance of the public interest indirectly acquire its subsidiary banks, Sunburst Bank, factors it must consider under section 4(c)(8) of the BHC Grenada, Mississippi ("SBM"), and Sunburst Bank, Baton Act is favorable and consistent with approval of Hunting- Rouge, Louisiana ("SBL"). ton's application to acquire FirstFed. Accordingly, the Union Planters also has applied under section 4(c)(8) of Board has determined that the application should be, and the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of hereby is, approved. The Board's approval is specifically the Board's Regulation Y (12 C.F.R. 225.23) to acquire conditioned on compliance by Huntington with all the com- Grenada's wholly owned subsidiary, Sunburst Financial mitments and conditions made in connection with this appli- Group, Inc., Grenada, Mississippi ("Sunburst Financial"), cation. The Board's determination also is subject to all the and thereby engage nationwide in the following nonbanking conditions set forth in Regulation Y, including those in activities: sections 225.7 and 225.23(b)(3) (12 C.F.R. 225.7 and (1) Providing securities brokerage and investment advi- 225.23(b)(3)), and to the Board's authority to require any sory services on a combined basis ("full-service securisuch modification or termination of the activities of a bank ties brokerage"), pursuant to sections 225.25(b)(4) and holding company or any of its subsidiaries as the Board (15)(ii) of Regulation Y (12 C.F.R. 225.25(b)(4) and finds necessary to assure compliance with, and to prevent (15)(ii)); and evasion of, the provisions and purposes of the BHC Act and (2) Purchasing and selling all types of securities as a the Board's regulations and orders issued thereunder. Both "riskless principal" on the order of customers. the commitments and conditions relied on by the Board in reaching this decision in this case are deemed to be condi- Notice of the applications, affording interested persons tions imposed in writing by the Board in connection with its an opportunity to submit comments, has been published findings and decision and, as such, may be enforced in (59 Federal Register 43,840 (1994)). The time for filing proceedings under applicable law. comments has expired and the Board has considered the This transaction may not be consummated later than applications and all comments received in light of the three months after the effective date of this order, unless factors set forth in sections 3 and 4 of the BHC Act. such period is extended for good cause by the Board or by Union Planters, with total consolidated assets of the Federal Reserve Bank of Cleveland, acting pursuant to $7.6 billion, operates 43 subsidiary banks and thrift delegated authority. institutions in Alabama, Arkansas, Kentucky, Mississippi By order of the Board of Governors, effective Novem- and Tennessee.1 Union Planters is the seventh largest ber 14, 1994. commercial banking organization in Mississippi, controlling deposits of $444.6 million, representing approxi- Voting for this action: Chairman Greenspan, Vice Chairman mately 2.1 percent of the total deposits in commercial Blinder and Governors Kelley, LaWare, Phillips, and Yellen. Ab- banking organizations in the state. Grenada, with total sent and not voting: Governor Lindsey. consolidated assets of $2.5 billion, is the third largest commercial banking organization in Mississippi, control- JENNIFER J. JOHNSON ling deposits of $1.8 billion, representing 8.4 percent of Deputy Secretary of the Board total deposits in commercial banking organizations in the to monitor Huntington's progress in correcting these areas in future applica- 1. All asset and state deposit data are as of June 30,1994. These figures are tions to acquire depository facilities. adjusted to reflect mergers approved through September 1, 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • January 1995 state. Upon consummation of this proposal, Union Planters ditioned upon Union Planters receiving all required state would become the third largest commercial banking organiza- regulatory approvals. tion in Mississippi, controlling deposits of $2.2 billion, representing approximately 10.5 percent of total deposits in com- Competitive Considerations mercial banking organizations in the state. Union Planters and Grenada own depository institutions Douglas Amendment Analysis that compete directly in the Memphis, Tennessee, banking market and in the Mississippi banking markets of Cleve- Section 3(d) of the BHC Act, the Douglas Amendment, land, Coahoma County, Oxford, Tallahatchie County, and prohibits the Board from approving an application by a Tupelo. The Board has carefully considered the effects that bank holding company to acquire control of any bank consummation of this proposal would have on competition located outside the bank holding company's home state, in these banking markets in light of all the facts of record, unless such acquisition is "specifically authorized by the including the number of competitors remaining in these statute laws of the State in which such bank is located, by markets, the increase in the concentration of total deposits language to that effect and not merely by implication."2 For in depository institutions6 in these markets ("market depospurposes of the Douglas Amendment, the home state of its") as measured by the Herfindahl-Hirschman Index Union Planters is Tennessee.3 ("HHI"),7 and certain commitments made by Union Plant- Mississippi and Louisiana have enacted banking statutes ers. that permit out-of-state bank holding companies to acquire Upon consummation of the proposal, Union Planters would banks in these states, provided that the home state of the remain the largest depository institution in the Coahoma acquiring bank holding company permits the acquisition of County banking market ("Coahoma banking market")8 and banks in that state on a reciprocal basis.4 Under Tennessee's become the largest depository institution in the Tallahatchie interstate banking statute, an out-of-state bank holding com- County banking market ('Tallahatchie banking market").9 pany may acquire a Tennessee bank or bank holding com- Both of these markets would be considered highly concenpany if the laws of the state in which the acquiring bank trated under the Department of Justice Merger Guidelines and holding company is located allow Tennessee bank holding Union Planters would control more than 60 percent of the companies to acquire banks and bank holding companies in market deposits in each market.10 In order to mitigate the that state, subject to any conditions, restrictions, require- adverse competitive effect that would result from consummaments, or other limitations that would apply to such acquisi- tion of this proposal in these two markets, Union Planters has tions but would not apply to an in-state acquisition in that committed to divest Union Planters's branch located in state.5 The Mississippi and Louisiana state banking supervisors have indicated that the reciprocity requirements under their respective statutes are satisfied by the Tennessee stat- 6. In this context, depository institutions include commercial banks and ute. In light of the foregoing, and based on an analysis of savings associations. Market deposit data are as of June 30, 1993. Market the interstate banking statutes involved, the Board has deter- share data are based on calculations in which the deposits of thrift institutions are included at 50 percent. The Board previously has indicated that thrift mined that its approval of this proposal is not prohibited by institutions have become, or have the potential to become, major competitors the Douglas Amendment. Approval of this proposal is con- of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). Thus, the Board has regularly included thrift deposits in the calculation of market share on a 50 percent weighted basis. See, e.g., First 2. 12 U.S.C. § 1842(d). Hawaiian Inc., 77 Federal Reserve Bulletin 52 (1991). 3. A bank holding company's home state is that state in which the 7. Under the revised Department of Justice Merger Guidelines, 49 Federal operations of the bank holding company's banking subsidiaries were princi- Register 26,823 (June 29, 1984), a market in which the post-merger HHI is pally conducted on July 1,1966, or the date on which the company became a above 1800 is considered to be highly concentrated. In such markets, the bank holding company, whichever is later. Justice Department is likely to challenge a merger that increases the HHI by 4. See Miss. Code Ann. § 81-8-1, et seq. (1989); La. Rev. Stat. more than 50 points. The Justice Department has informed the Board that a Ann. § 6:531 et seq. (West Supp. 1994). Under the Mississippi Regional bank merger or acquisition generally will not be challenged (in the absence Banking Institutions statute, bank holding companies within a defined re- of other factors indicating anticompetitive effects) unless the post-merger gion, which includes Tennessee, are permitted to acquire a Mississippi bank HHI is at least 1800 and the merger increases the HHI by more than 200 holding company provided that the applicant's home state authorizes the points. The Justice Department has stated that the higher than normal HHI acquisition of banks in that state by a Mississippi bank or bank holding thresholds for screening bank mergers for anticompetitive effects implicitly company under conditions no more restrictive that those imposed by the laws recognize the competitive effect of limited-purpose lenders and other nonof Mississippi. Mississippi law also imposes certain other conditions, includ- depository financial entities. ing that the bank to be acquired has been in continuous operation for at least 8. The Coahoma banking market is approximated by Coahoma County, five years, that have been satisfied in this case. The Louisiana Interstate Mississippi. Banking laws authorize any out-of-state bank holding company to acquire a 9. The Tallahatchie banking market is approximated by Tallahatchie bank holding company or bank in Louisiana if the Commissioner of Finan- County, Mississippi. cial Institutions for the state of Louisiana determines that the law of the state 10. In the Coahoma banking market, the HHI would increase 2550 points in which the out-of-state bank holding company has its principal place of to 5966 and Union Planters would control 72 percent of market deposits business permits Louisiana bank holding companies to acquire banks and upon consummation. In the Tallahatchie banking market, consummation of bank holding companies in that state. the proposal would increase the HHI 1147 points to 4932 and Union Planters 5. Tenn. Code Ann. § 45-12-102 et seq. (1993). would control 63.2 percent of market deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 51 Tutwiler, Mississippi (in the Tallahatchie banking market), tors, the Board concludes that consummation of this pro- Grenada's largest branch located in Claiksdale, Mississippi, posal would not have a significantly adverse effect on and Grenada's branch located in Lula, Mississippi, both in the competition or concentration of banking resources in any of Coahoma banking market, to out-of-maiket depository institu- the relevant banking markets in which Union Planters and tions.11 The proposed divestitures would preserve the number Grenada compete. of depository institutions that compete in these markets and consummation of this proposal would not exceed the threshold Convenience and Needs Considerations levels in the Department of Justice Merger Guidelines.12 In the Memphis, Tennessee, banking market and the Mississippi In acting on an application to acquire a depository instibanking markets of Cleveland, Oxford, and Tupelo,13 consum- tution under the BHC Act, the Board must consider the mation of this proposal also would not exceed the threshold convenience and needs of the communities to be served, standards in these Guidelines.14 In addition, numerous compet- and take into account the records of the relevant deposiitors would remain in all of these markets. tory institutions under the Community Reinvestment Act As in other cases, the Board also sought comments from (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the United States Attorney General's Office, the Office of the federal financial supervisory agencies to encourage the Comptroller of the Currency ("OCC"), and the Federal financial institutions to help meet the credit needs of the Deposit Insurance Corporation ("FDIC") on the competitive local communities in which they operate, consistent with effects of this proposal. The Attorney General, OCC, and the safe and sound operation of such institutions. To FDIC have not objected to consummation of the proposal or accomplish this end, the CRA requires the appropriate indicated that the proposal would have any significantly federal supervisory authority to "assess the institution's adverse competitive effects in any relevant banking market record of meeting the credit needs of its entire commuin which Union Planters and Grenada compete. Based on all nity, including low- and moderate-income neighborthe facts of record, including the proposed divestitures, the hoods, consistent with the safe and sound operation of such institution," and to take that record into account in relatively small changes in market concentration as meaits evaluation of bank expansion proposals.15 sured by the HHI, and the number of remaining competi- In connection with these applications, the Board has received comments from several organizations ("Protes- 11. Union Planters has committed to submit to the Board, prior to tants") criticizing the record of performance and commitconsummation of its acquisition of Grenada, a binding contract acceptable to ment of Union Planters and Grenada under the CRA in the Board for the sale of these branches. Union Planters also has committed helping to meet community credit needs.16 In particular, that if it does not execute such a contract before consummation, it will transfer these branches to an independent trustee upon consummation, who Protestants maintain that 1993 data collected under the will be authorized to supervise the operations of these branches and in- Home Mortgage Disclosure Act ("HMDA") indicate that structed to promptly find a suitable buyer without regard to price. Union Union Planters's lead subsidiary bank, Union Planters Na- Planters also has committed to submit to the Board, prior to consummation of the acquisition, an executed trust agreement acceptable to the Board tional Bank, Memphis, Tennessee ("UPNB"), illegally disstating the terms of this divestiture. The Board's action on the application is criminates against African-American borrowers in applicaexpressly conditioned on compliance with these commitments. tions for first mortgages, refinancings and home 12. Upon completion of the proposed divestitures, in the Coahoma banking market, Union Planters would control 44 percent of the total market improvement loans.17 Protestants also question the outreach deposits, and the HHI would increase 86 points to 3502. In the Tallahatchie and marketing efforts of UPNB and Grenada to the Africanbanking market, Union Planters proposes to divest its own branch and American community, and contend that UPNB does not acquire Grenada's current operations; thus, the proposal would not have any effect on the number of competitors in the market. In this market, Union have a sufficient number of branches in minority and low- Planters would control 52.2 percent of the total market deposits, and the HHI and moderate-income areas.18 Finally, Protestants believe would remain 3785. 13. The Memphis, Tennessee, banking market is approximated by Fayette, that SBM's less-than-satisfactory CRA performance rating, Shelby and Tipton Counties in Tennessee, Crittenden County, Arkansas, and and the absence of specific steps by UPNB to address De Soto and Tate Counties in Mississippi; the Cleveland banking market is approximated by Bolivar County and the northern half of Sunflower County, both in Mississippi; the Oxford banking market is approximated by Lafayette, Panola and Yolobusha Counties, all in Mississippi; and the Tupelo 15. 12 U.S.C. § 2903. banking market is approximated by Lee and Prentiss Counties, both in 16. These organizations include the National Community Reinvestment Mississippi. Coalition, Lafayette County Chapter of the Mississippi NAACP, Mississippi 14. Union Planters would remain the second largest depository institution Human Services Agenda, North Mississippi Rural Legal Services Corporain the Memphis banking market, controlling 15.5 percent of market deposits, tion, Mid-South Peace and Justice Center, and Memphis Branch NAACP. and the HHI would increase by 16 points to 1197. Union Planters would 17. Protestants support their allegations by comparing UPNB's lending become the second largest depository institution in the Cleveland banking data to data submitted by the three largest Memphis-based financial institumarket, controlling 22.6 percent of market deposits, and the HHI would tions in various categories, including the total dollar amount of lending to increase by 171 points to 1838. Union Planters would remain the largest African Americans and to census tracts with a majority of African-American depository institution in the Oxford banking market, controlling 27.7 percent residents, and the amount of loans to African Americans as the percentage of of market deposits, and the HHI would increase by 319 points to 1609. Union the bank's total lending. One Protestant also has noted that UPNB has been Planters would become the sixth largest depository institution in the Tupelo sued for illegal discrimination as the result of an individual loan denial. banking market, controlling 3.4 percent of market deposits, and the HHI 18. Protestants specifically criticize UPNB's relocation of its headquarters would increase by 5 points to 2404. from downtown Memphis to a suburb. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • January 1995 identified deficiencies at the bank, should warrant denial of example, these data indicate an increase in the number of the applications.19 loan applications received by UPNB from residents of low- The Board has carefully reviewed the CRA performance to moderate-income census tracts as well as an increase in records of Union Planters, Grenada, and their respective the number of mortgage loans originated in low- and subsidiary banks; all comments received regarding these moderate-income census tracts by UPNB. UPNB also has applications; Union Planters's and Grenada's responses to shown improvement in its record of lending to communities those comments; and all other relevant facts of record in with predominately minority populations. In particular, light of the CRA, the Board's regulations, and the Agency HMDA data indicate an increase in the number of loan CRA Statement.20 applications received from African Americans and in the number of loans originated to African Americans, as well as Record of Performance Under the CRA a decrease in the percentage of denied African-American loan applications. The improving trends in the 1993 HMDA A. CRA Performance Examinations data are confirmed by the preliminary 1994 HMDA data.23 The preliminary 1994 HMDA data show that UPNB sus- The Agency CRA Statement provides that a CRA examina- tained its level of lending to low- and moderate-income tion is an important and often controlling factor in the census tracts and increased its number of home purchase consideration of an institution's CRA record and that these loans to African-American borrowers. However, the data reports will be given great weight in the applications pro- also reflect some disparities in the rate of loan originations, cess.21 The Board notes that UPNB received a "satisfacto- denials, and applications by racial group or income level. ry" rating from its primary federal regulator, the OCC, at its The Board is concerned when the record of an institution most recent publicly available examination for CRA perfor- indicates disparities in lending to minority applicants and bemance in May 1992 ("1992 Examination"). The OCC has lieves that all banks are obligated to ensure that their lending recently concluded another examination of UPNB, and has practices are based on criteria that assure not only safe and preliminarily rated its record of CRA performance "satisfac- sound lending, but also assure equal access to credit by credittory." Union Planters's remaining 42 subsidiary banks and worthy applicants regardless of race. The Board recognizes, thrifts received either "outstanding" or "satisfactory" rat- however, that HMDA data alone provide an incomplete meaings from their primary regulators in the most recent exam- sure of an institution's lending in its community. The Board inations of their CRA performance.22 As previously noted, also recognizes that HMDA data have limitations that make SBM's CRA performance was rated "needs to improve" by the data an inadequate basis, absent other information, for its primary federal regulator, the FDIC, as of October 1993. concluding that an institution has engaged in illegal discrimina- Grenada's other subsidiary, SBL, was rated "satisfactory" tion in making lending decisions. for CRA performance by the FDIC as of October 1992. The Board has carefully reviewed Protestants's allegations of illegal discriminatory practices in UPNB's lending B. HMD A Data and Lending Practices activities in light of publicly available and other information from the OCC, the bank's primary regulator. In this The Board has carefully reviewed Union Planters's 1993 regard, the 1992 Examination found that credit criteria are and preliminary 1994 HMDA data in light of Protestants's generally applied in a nondiscriminatory manner in evaluatconcerns. In general, these data indicate that Union Planters ing applications. Examiners also found no evidence of any has improved its lending record of home mortgage loans to practices or procedures that would discourage applications low- and moderate-income and minority borrowers. For for available credit from any geographical segment of its delineated community. Moreover, the 1992 Examination found that UPNB's delineation of its local communities was reasonable and did not arbitrarily exclude low- to moderate- 19. One Protestant suggests that the Board should convene a forum with community groups and interested parties for the purpose of establishing income areas. Examiners also noted that training programs specific time tables and performance goals. Another Protestant believes that were in place to guide employees regarding fair lending. no progress was made with UPNB under a written agreement with that UPNB has initiated a number of steps to increase its lending group. The Board has indicated in previous orders and in the Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvest- to low- and moderate-income and minority borrowers. For ment Act ("Agency CRA Statement") that communication by depository example, UPNB has a second review process in place for any institutions with community groups provides a valuable method of assessing mortgage application that is denied. The purpose of this proand determining how best to address the credit needs of the community. However, neither the CRA nor the Agency CRA Statement requires deposi- gram is to ensure that mortgage applications from all applitory institutions to enter into agreements with particular organizations. See cants, including low- and moderate-income and minority appli- Fifth Third Bancorp, 80 Federal Reserve Bulletin 838 (1994). cants, have received fair consideration. 20. 54 Federal Register 13,742 (1989). 21. Id. at 13,745. 22. Of these institutions, 35 received a CRA performance rating of "satisfactory," and seven received a CRA performance rating of "outstanding." 23. The preliminary 1994 HMDA data are through September 30, 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 53 UPNB also has several lending programs designed to im- Moreover, the bank's outreach efforts also include educaprove its lending to minorities and low- and moderate-income tional programs for the public. For example, UPNB has communities. In particular, UPNB developed a new mortgage provided free seminars on home buying, credit repair, and product targeted to low-and moderate-income consumers in financial budgeting and planning at local churches, hotels 1992. To date, the bank has originated 89 loans totaling ap- and libraries. UPNB has developed a "Home Buyers Guide" proximately $3.4 million, to low- and moderate-income cus- to educate potential home buyers on the mortgage loan tomers under this program. In addition, through UPNB's in- process. UPNB also uses direct mail to realtors and seminar volvement in the New Day Development Project, UPNB has attendees to inform individuals of UPNB's products and committed approximately $15 million to originate down pay- services. ment assistance and mortgage financing loans in the Raleigh- UPNB markets its products and services through a vari- Frayser area of Memphis, a low- and moderate-income neigh- ety of advertising activities, including print media, direct borhood. During the first quarter of 1994, UPNB has approved mail, and radio and television advertising. These activities six loans under this project, totaling $327,700, and 16 addi- include marketing efforts targeted to African-American custional loans totaling $856,588 are under review. UPNB senior tomers. For example, UPNB advertises in the "Tri-State management also has approved the establishment of a $5 Defender" and "Silver Star," African-American owned million pool to be used to place secondary market loans to newspapers circulated primarily in the African-American creditworthy minority applicants who may not meet traditional community. UPNB also targets the African-American comunderwriting criteria. munity by advertising on radio stations owned by African UPNB also actively engages in small business lending, Americans. and it currently has over $48.9 million in loans outstanding to small businesses. Approximately $16.2 million has been D. Branch Locations loaned to small businesses located in low- and moderateincome census tracts, including $4.8 million of this amount The 1992 Examination found that UPNB operated fullloaned to businesses owned by African Americans. UPNB service branches, limited service branches and automated is a certified lender with the Small Business Administration teller machines ("ATMs") at locations reasonably accessible ("SBA"), and has over $6.7 million in outstanding SBA to all segments of its community, including low- to loans, as of January 31,1994. In addition, UPNB engages in moderate-income neighborhoods. Examiners concluded that several micro-revolving loan funds for small businesses. products and services provided at these facilities were suitable for the needs of the community.24 The 1992 Examination also noted that the bank had a C. Ascertainment and Outreach Efforts comprehensive branch closing/service reduction policy that serves to minimize their impact. In addition, UPNB's record of opening and closing offices was not deemed to have had UPNB uses several methods to ascertain community credit an adverse impact on the level of services provided within needs, including questionnaires, direct contacts and commu- its communities. nity outreach programs. For example, UPNB ascertains the Although UPNB has moved its headquarters from downcredit needs of communities through direct contacts with town Memphis, the bank continues to maintain a branch civic and community-based organizations, community bank located one block away from its previous headquar- Boards, religious groups, trade and special interest groups, ters. Moreover, the bank received approval from the OCC in and government entities. These outreach efforts include 1994 to open another full-service branch in downtown joint efforts with community organizations. In particular, Memphis. In addition, UPNB has two full-service branches UPNB is actively involved with the Black Business Associ- in the Whitehaven area in Memphis, which serves low- and ation of Memphis to develop programs, projects and activi- moderate-income census tracts. UPNB also has recently ties designed to promote the development of minority busi- installed five new ATMs in low- and moderate-income and nesses in the community, and the Memphis Multi-Bank minority areas of Memphis. Community Development Corporation to aid in the renovation, improvement and construction of housing for low- and moderate-income individuals in Memphis. Bank representatives also participate in meetings with numerous organizations, and serve on the boards of directors of organizations that represent low- and moderate-income neighborhoods, 24. Examiners noted that during 1991, several branches in the Memphis small businesses and minority consumers and other special area were designated as "Home Buyers Centers" with personnel in these interest groups. In this regard, UPNB has met with the branches receiving additional training in housing-related financing. The 1992 Shelby County Reinvestment Coalition quarterly since Examination concluded that the locations of these branches, including some in communities that serve low- to moderate-income neighborhoods, served to 1987, and intends to continue these meetings. better accommodate customers in the community. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • January 1995 E. Efforts to Address SBM's CRA Performance F. Conclusion Regarding Convenience and Needs Rating Factors Union Planters has in place the types of policies and proce- The Board has carefully considered the entire record, indures that the Board and other Federal bank supervisory agen- cluding the comments filed in this case, in reviewing the cies have indicated contribute to an effective CRA program, convenience and needs factors under the BHC Act. Based and it has committed to implement these policies and pro- on a review of the entire record of performance, including grams at SBM after consummation of the proposal. These information provided by Protestants and Union Planters, the policies include provisions that make the board of directors of CRA performance examinations and other information from each subsidiary of Union Planters responsible for implement- the banks's primary regulators, and Union Planters's coming and overseeing the bank's CRA program. In the case of mitments and the conditions in this order, the Board be- UPNB, the bank has a CRA officer who is responsible for lieves that the efforts of Union Planters and Grenada to help administering UPNB's CRA program and reporting to the meet the credit needs of all segments of the communities board of directors. The CRA officer chairs an internal CRA served by their subsidiary banks, including low- and Committee with other senior management that meets monthly moderate-income neighborhoods, are consistent with apto review UPNB's CRA program. UPNB's board of directors proval. For these reasons, and based on all the facts of also has appointed a director's CRA committee which meets record, the Board concludes that convenience and needs quarterly to review UPNB's CRA activities. Each subsidiary considerations, including the CRA performance records of reports at least annually to Union Planters's Director of Com- the companies and banks involved in these proposals, are pliance on its CRA activities and performance. Union Plant- consistent with approval of these applications.27 ers's policies also require periodic reports on progress in improving the CRA performance of any of its subsidiaries Other Considerations with a less-than-satisfactory rating. The Board notes that several institutions acquired by Union Planters with less-than- The Board also concluded that the financial and managerial satisfactoiy CRA performance ratings later improved to satis- resources and future prospects of Union Planters, Grenada, factory ratings after being consolidated within its programs.25 and their respective subsidiaries, and other supervisory fac- Upon consummation of this proposal, Union Planters has tors the Board must consider under section 3 of the BHC committed to review Grenada's CRA statements, perfor- Act, are consistent with approval of this proposal. mance summaries, and training programs, and to ensure that Union Planters also has applied, pursuant to section SBM receives a "satisfactory" rating at its next CRA exam- 4(c)(8) of the BHC Act, to engage in investment advisory, ination.26 The Board expects Union Planters to take steps securities brokerage and riskless principal activities. The that will address the areas of weakness identified in the Board has previously determined by regulation that the FDIC's most recent examination of SBM. In addition, proposed full service brokerage activities are closely related Union Planters must submit to the Federal Reserve Bank of to banking for purposes of section 4(c)(8) of the BHC St. Louis ("Reserve Bank"), when delivered to the FDIC, a Act.28 Union Planters has committed that it will conduct copy of the plan to address the weaknesses in the CRA these activities in accordance with the Board's regulations performance record of SBM identified by the FDIC. Union and orders approving these activities for bank holding com- Planters also is required to report quarterly to the Reserve panies. Bank, beginning with the quarter in which the plan is implemented. Union Planters's progress in remedying these deficiencies will be taken into account in connection with future applications by Union Planters to acquire depository 27. Protestants have requested a public hearing or meeting to discuss the institutions. proposed acquisition of Grenada. Section 3(b) of the BHC Act does not require the Board to hold a public hearing on an application unless the appropriate supervisory authority for the bank to be acquired makes a timely written recommendation of denial of the application. In this case, the Mississippi Department of Banking and Consumer Finance 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 issues related to the application and to provide an opportunity for testimony, if appropriate. 25. Steiner Bank, Steiner, Alabama, was acquired on November 30, 1989; 12 C.F.R. 262.3(e) and 262.25(d). The Board has carefully considered this Security Trust Federal Savings & Loan Association, Knoxville, Tennessee, request. In the Board's view, Protestants have had ample opportunity to and was acquired on January 1, 1993; and First Southern Bank, Earle, Arkansas, have presented written submissions, and Protestants have not identified facts was acquired on August 1, 1994. that are material to the Board's decision and that are in dispute. Therefore, 26. Union Planters also proposes to contract with an independent third the Board has determined that a public meeting or hearing is not necessary to party to perform an extensive supplemental review of SBM's CRA program. clarify the factual record in this application, or otherwise warranted in this This third party contractor has performed fair lending reviews of three of case, and the request for a public meeting or hearing on this application is Union Planters's largest subsidiary banks as part of Union Planters's ongoing denied. monitoring of its CRA activities. 28. See 12 C.F.R. 225.25(b)(4)(i)-(iv) and (b)(15). 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Legal Developments 55 "Riskless principal" is the term used in the securities In every case under section 4 of the BHC Act, the Board business to refer to a transaction in which a broker-dealer, considers the financial condition and resources of the appliafter receiving an order to buy (or sell) a security from a cant and its subsidiaries and the effect of the transaction on customer, purchases (or sells) the security for its own ac- those resources.33 Based on all the facts of record, the count to offset a contemporaneous sale to (or purchase Board has concluded that financial and managerial considerfrom) the customer.29 "Riskless principal" transactions are ations are consistent with approval. understood in the industry to include only transactions in In order to approve this application, the Board also must the secondary market. Thus, under this proposal, Sunburst determine that the performance of the proposed activities by Financial would not act as a "riskless principal" in selling Sunburst Financial "can reasonably be expected to produce securities at the order of a customer that is the issuer of the benefits to the public . . . that outweigh possible adverse securities to be sold, or in any transaction in which Sunburst effects, such as undue concentration of resources, decreased Financial has a contractual agreement to place the securities or unfair competition, conflicts of interests, or unsound as agent of the issuer. Sunburst Financial also would not act banking practices." 12 U.S.C. § 1843(c)(8). In considering as a "riskless principal" in any transaction involving a Union Planters's acquisition of these nonbanking activities security for which it makes a market. of Grenada, the record in this case indicates that there are The Board previously has determined by order that, sub- numerous providers of these nonbanking services, and there ject to a number of prudential limitations that address the is no evidence in the record to indicate that consummation potential for conflicts of interests, unsound banking prac- of this proposal is likely to result in any significantly tices, and other adverse effects, the proposed riskless princi- adverse effects, such as undue concentration of resources, pal activities are so closely related to banking as to be a decreased or unfair competition, conflicts of interests, or proper incident thereto within the meaning of section 4(c)(8) unsound banking practices that would outweigh the public of the BHC Act.30 The Board also previously has deter- benefits of this proposal. Accordingly, the Board has determined that purchasing and selling securities on the order of mined that the balance of public interest factors it must investors as a "riskless principal" does not constitute under- consider under section 4(c)(8) of the BHC Act is favorable writing or dealing in securities for purposes of section 20 of and consistent with approval. the Glass-Steagall Act (12 U.S.C. § 377), and, accordingly, that revenue derived from these activities is not subject to Conclusion the 10 percent revenue limitation on underwriting and dealing in ineligible securities.31 In order to address the poten- Based on the foregoing, including the commitments made tial for conflicts of interests, unsound banking practices, or to the Board by Union Planters in connection with applicaother adverse effects, Union Planters has committed that tions, and in light of all the facts of record, the Board has Sunburst Financial will conduct its "riskless principal" ac- determined that these applications should be, and hereby tivities using the same methods and procedures, and subject are, approved.34 The Board's approval is specifically condito the same prudential limitations established by the Board tioned upon compliance by Union Planters with all commitin the Bankers Trust Order and the J.P. Morgan Order.32 ments made in connection with these applications as well as the conditions discussed in this order and in the abovereferenced orders. The Board's determinations as to the nonbanking activi- 29. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R. ties to be conducted by Union Planters are subject to all the 240.10b- 10(a)(8)(i). conditions in the Board's Regulation Y, including those in 30. See Bankers Trust New York Corporation, 75 Federal Reserve Bulletin sections 225.7 and 225.23(b)(3) (12 C.F.R. 225.7 and 829 (1989) ("Bankers Trust Order"); J.P. Morgan & Company Incorporated, 76 Federal Reserve Bulletin 26 (1990) ("J.P. Morgan Order"). 31. See Bankers Trust Order. 32. See J.P. Morgan Order; Bankers Trust Order. Among the prudential limitations detailed more fully in those orders are that Sunburst Financial 33. See 12 C.F.R. 225.24. See also The Fuji Bank, Umited, 75 Federal will maintain specific records that will clearly identify all "riskless principal" Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve transactions, and that Sunburst Financial will not engage in any "riskless Bulletin 155 (1987). principal" transactions for any securities carried in its inventory. When acting 34. One Protestant maintains that UPNB discriminates against African as a "riskless principal," Sunburst Financial will engage only in transactions Americans in its employment practices. In this regard, the Board notes that in the secondary market, and not at the order of a customer that is the issuer because UPNB employs more than 50 people, serves as a depository of of the securities to be sold, will not act as "riskless principal" in any government funds, and acts as agent in selling or redeeming U.S. savings transaction involving a security for which it makes a market, nor hold itself bonds and notes, it is required by Department of Labor regulations to: out as making a market in the securities that it buys and sells as a "riskless (1) File annual reports with the Equal Employment Opportunity Commisprincipal." Moreover, Sunburst Financial will not engage in "riskless princi- sion; and pal" transactions on behalf of any foreign affiliates that engage in securities (2) Have in place a written affirmative action compliance program which dealing activities outside the United States, and will not act as "riskless states its efforts and plans to achieve equal opportunity in the employment, principal" for registered investment company securities. In addition, Sun- hiring, promotion, and separation of personnel. burst Financial will not act as a "riskless principal" with respect to any See 41 C.F.R. 60-1.7(a), 60-1.40. The record also indicates that Union securities of investment companies that are advised by Union Planters or any Planters and its other subsidiaries are subject to these equal opportunity and of its affiliates. affirmative action requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1995 225.23(b)(3)), and to the Board's authority to require such Procedure (12 C.F.R. 262.3(b)). As required by the Bank modification or termination of the activities of a holding Merger Act, reports on the competitive effects of the procompany or any of its subsidiaries as the Board finds posal were requested from the United States Attorney Gennecessary to assure compliance with, or to prevent evasion eral ("Attorney General"), the Office of the Comptroller of of, the provisions and purposes of the BHC Act and the the Currency ("OCC"), and the Federal Deposit Insurance Board's regulations and orders issued thereunder. The com- Corporation ("FDIC"). The time for filing comments has mitments and conditions relied on by the Board in reaching expired, and the Board has considered the applications and this decision are deemed to be conditions imposed in writ- all comments received in light of the factors set forth in the ing by the Board in connection with its findings and deci- Bank Merger Act and the Federal Reserve Act. sion, and as such may be enforced in proceedings under Marine Midland controls deposits of $12.5 billion, repreapplicable law. senting approximately 5 percent of the total deposits in The acquisition of Grenada's subsidiary banks shall not commercial banks in New York.2 The HSBC branches be consummated before the thirtieth calendar day following control deposits of $409.2 million. Upon consummation of the effective date of this order, unless such period is short- this proposal, Marine Midland would remain the fifth largened with the consent of the Attorney General, and the est commercial banking organization in New York, controlbanking and the nonbanking transactions shall not be con- ling deposits of $12.9 billion, representing approximately summated later than three months following the effective 5.3 percent of total deposits in commercial banks in the date of this order, unless such period is extended for good state. Marine Midland and HSBC are affiliated institutions. cause by the Board or by the Federal Reserve Bank of This proposal represents a reorganization of the corporate St. Louis, acting pursuant to delegated authority. structure of Holdings, and would not result in any expan- By order of the Board of Governors, effective Novem- sion of its US. operations. The Attorney General has indiber 7, 1994. cated that this proposal is not likely to result in a significantly adverse effect on competition in any relevant banking Voting for this action: Chairman Greenspan and Governors market, and neither the OCC nor the FDIC has objected to Kelley, Phillips, and Yellen. Absent and not voting: Vice Chairman consummation of this transaction. Based on all the facts of Blinder and Governors LaWare and Lindsey. record, including the foregoing, the Board has concluded that consummation of this proposal would not have a signif- JENNIFER J. JOHNSON icantly adverse effect on competition or the concentration of Deputy Secretary of the Board banking resources in any relevant banking market. Convenience and Needs Considerations ORDERS ISSUED UNDER BANK MERGER ACT Marine Midland Bank In acting on an application under the Bank Merger Act, the Buffalo, New York Board is required to consider the convenience and needs of the communities to be served, and to take into account the Order Approving the Acquisition of Branches records of the relevant depository institutions under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) Marine Midland Bank, Buffalo, New York ("Marine Mid- ("CRA"). The CRA requires the federal financial superviland"), a state member bank, has applied under section sory agencies to encourage financial institutions to help 18(c) of the Federal Deposit Insurance Act meet the credit needs of the local communities in which (12 U.S.C. § 1828(c)) ("Bank Merger Act") to acquire six they operate, consistent with the safe and sound operation New York State retail branch banking offices of Hongkong of such institutions. To accomplish this end, the CRA and Shanghai Banking Corporation Limited, Hong Kong requires the appropriate federal supervisory authority to ("HSBC"), and to establish branches at these existing of- "assess the institution's record of meeting the credit needs fices under section 9 of the Federal Reserve Act of its entire community, including low- and moderate- (12 U.S.C. § 321 et seq.).1 Marine Midland and HSBC are income neighborhoods, consistent with the safe and sound both wholly owned by HSBC Holdings pic, London, En- operation of such institution," and to take that record into gland ("Holdings"). account in its evaluation of applications under the Bank Notice of the applications, affording interested persons an Merger Act.3 opportunity to submit comments, has been given in accor- The Board has received comments from the Concerned dance with the Bank Merger Act and the Board's Rules of Citizens of Westchester County New York, White Plains, 1. The proposed acquisition would be efFected through a purchase of assets and assumption of liabilities. The locations of the branch offices to be 2. Deposit data are as of June 30,1994. acquired are set forth in the Appendix. 3. 12 U.S.C. § 2903. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 57 New York ("Protestant"), that criticize the CRA perfor- cerns.7 In general, these data show that Marine Midland has mance record of Marine Midland.4 Protestant believes that improved its HMDA lending record to African-American Marine Midland does not address the credit needs of minor- borrowers. In particular, the 1993 HMDA data indicate an ities in all the geographic areas that it serves, and that increase in the number of loan applications received from Marine Midland does not offer all its credit products on an and the loan originations to African Americans. However, equal basis. Specifically, Protestant alleges that Marine Mid- the data also reflect some disparities in the rate of loan land's 1993 Home Mortgage Disclosure Act ("HMDA") originations, denials, and applications by racial group or data show that the bank has not adequately addressed the income level. mortgage needs of African-American communities in The Board is concerned when an institution's record Westchester County. Protestant also alleges that Marine indicates disparities in lending to minority applicants and Midland does not advertise its credit products in African- the Board believes all banks are obligated to ensure that American communities and does not participate in first-time their lending practices are based on criteria that assure not home-buyers seminars sponsored by various community only safe and sound lending, but also equal access to credit organizations in Westchester. by creditworthy applicants regardless of race. The Board In considering the convenience and needs factor under the recognizes, however, that HMDA data alone provide an Bank Merger Act, the Board has carefully reviewed the entire incomplete measure of an institution's lending in its comrecord of CRA performance of Marine Midland, all comments munity. The Board also recognizes that HMDA data have received, Marine Midland's response to those comments, and limitations that make the data an inadequate basis, absent all other relevant facts of record in light of the CRA, the other information, for concluding that an institution has Board's regulations, and the Statement of the Federal Financial engaged in illegal discrimination in lending. Supervisory Agencies Regarding the Community Reinvest- The 1994 Examination found that Marine Midland's loan ment Act ("Agency CRA Statement").5 policies and underwriting criteria were reasonable and did not discriminate on any prohibited basis. Specifically, exam- Record of CRA Performance iners noted that the loan terms, qualifying ratios and underwriting guidelines for residential mortgage loans were rea- A. Evaluation of CRA Performance sonable and comparable with industry standards. The examination also noted that Marine Midland used a second The Agency CRA Statement provides that a CRA examina- review program for all declined residential mortgage applition is an important and often controlling factor in the cations, in which underwriting supervisors reviewed the consideration of an institution's CRA record, and that these original underwriter's decision and must concur in order for reports will be given great weight in the applications pro- an application to be denied. cess.6 The Board notes that Marine Midland received a The 1994 Examination did not find any practices that "satisfactory" rating from the OCC for CRA performance were intended to discourage credit applications. Examiners as of March 31, 1992. Since December 31, 1993, Marine noted that Marine Midland solicited credit applications from Midland has been a member of the Federal Reserve System, all segments of its communities, including low- and and recently has been examined for CRA performance by moderate-income areas. Moreover, the 1994 Examination the Federal Reserve Bank of New York ("Reserve Bank"). found that the bank's credit practices complied with the Marine Midland received a CRA examination rating of substantive provisions of antidiscrimination laws and regu- "satisfactory" from the Reserve Bank at its most recent lations. Examiners also found that Marine Midland gener- CRA examination as of January 31, 1994 ("1994 Examina- ally had a reasonable geographic distribution of residential tion"). mortgage and home improvement loans and applications from low- and moderate-income census tracts throughout B. Other Aspects of CRA Performance the bank's delineated service areas. Marine Midland offers several special mortgage pro- HMDA Data and Lending Practices. The Board has care- grams to its communities. Since 1990, the bank has particifully reviewed Marine Midland's 1992 and 1993 HMDA pated in the Federal National Mortgage Association's Comdata for Westchester County in light of Protestant's con- munity Homebuyers and FannieNeighbors programs. Both programs provide for flexible down payment methods which are only available to borrowers who do not exceed 100 percent of the Department of Housing and Urban Development's median income guidelines. Marine Midland recently 4. Protestant's comments were received after the close of the comment period. Under the Board's Rules of Procedure, the Board may, in its discretion, take into consideration comments received after the comment period has expired. 12 C.F.R. 262.3(e). 5. 54 Federal Register 13,742 (1989). 7. The Board has reviewed the HMDA data for both Marine Midland and 6. Id. at 13,745. Marine Midland Mortgage Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Federal Reserve Bulletin • January 1995 started its own Affordable Housing Loan Program to target banking seminars in its delineated communities and particilow- and moderate-income borrowers who do not qualify pates in affordable housing fairs sponsored by the Long for the other residential lending programs. The bank has Island Board of Realtors, the Federal National Mortgage committed $10 million to this program to finance residential Association and the New York State Housing Coalition. mortgage loans and an additional $300,000 to assist in financing down payments for these loans. C. Conclusion Marine Midland also participates in several governmentally insured loan programs. Marine Midland has been named one of the top two Small Business Administration ("SBA") lenders In reviewing the convenience and needs factor under the for New York State during 1992 and 1993, and continues to Bank Merger Act, the Board has carefully considered the hold the SBA's preferred lender status for its commitment to entire record, including Protestant's comments and the small business lending. In addition to SBA lending, Marine bank's CRA record of performance. In light of all facts of Midland offers Veteran's Administration, FHA 203B, and record, the Board believes that the efforts of Marine Mid- State of New York Mortgage Association loans, for borrowers land to help meet the credit needs of all segments of its who meet the programs's income requirements. communities, including low- and moderate-income neigh- The 1994 Examination found that Marine Midland partic- borhoods, as well as all other convenience and needs conipates in various community development programs across siderations, are consistent with approval of this proposal. New York State and provides loans and lines of credit to a wide variety of local organizations that support housing, Other Considerations economic development, rehabilitation or small business development. From July 1992 to July 1994, the bank's com- The Board also has concluded that the financial and managemunity development financing totalled $27.1 million. In rial resources and future prospects of Marine Midland, and all particular, as of December 31, 1993, Marine Midland had other supervisory factors the Board must consider under the $1.3 million in loans outstanding under a $2.7 million line Bank Merger Act, are consistent with approval. The Board of credit to organizations dedicated to the construction and also has considered the factors it is required to consider when rehabilitation of affordable housing and permanent mortreviewing applications to establish branches pursuant to secgage loans for low- and moderate-income multi-family tion 9 of the Federal Reserve Act (12 U.S.C. § 321 et seq.), and housing in New York City, Westchester County and the has determined that those factors are consistent with approval Lower Hudson Valley, all in New York. Examiners also of the establishment of Marine Midland branches at the present found that many of the bank's officers and employees sites of the HSBC branch offices. provided technical assistance to organizations located Based on the foregoing and all other facts of record, includthroughout New York State that promote community develing the commitments made by Marine Midland, the Board has opment programs. determined that the applications should be, and hereby are, Ascertainment and Marketing. Marine Midland ascerapproved. The Board's approval is specifically conditioned on tains community credit needs in various ways. For example, compliance by Marine Midland with all the commitments the bank has a directed call program, and its officers and made in connection with the applications. The commitments employees participate in a number of community organizaand conditions relied on by the Board in reaching its decision tions.8 Moreover, in June 1993, Marine Midland conducted are deemed to be conditions imposed in writing by the Board a CRA survey in five New York State markets using a in connection with its findings and decision, and, as such, may random sample of consumers residing in low- and be enforced in proceedings under applicable law. moderate-income zip codes to determine the level of aware- This transaction shall not be consummated before the ness of the bank and its products and services. fifteenth calendar day following the effective date of this Marine Midland markets its products and services primarorder, or later than three months after the effective date of ily through advertisements in daily newspapers, local this order, unless such period is extended for good cause by weekly news and trade publications, and some journals and the Board or by the Federal Reserve Bank of New York, special audience publications that focus on specific minoracting pursuant to delegated authority. ity groups and low- and moderate-income areas. In By order of the Board of Governors, effective Novem- Westchester County, Marine Midland has advertised in sevber 21, 1994. eral newspapers and a radio station oriented towards predominantly minority communities. The bank also conducts Voting for this action: Chairman Greenspan, Vice Chairman Blinder and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey. 8. The 1994 Examination noted that the directed call program reached 66 organizations involved with affordable housing development, community JENNIFER J. JOHNSON development and rehabilitation. In addition, Marine Midland's officers and employees participated in a number of community organizations. Deputy Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 59 Appendix Bank"), that demonstrate Bank's satisfactory financial condition. Based on this review, the Board concludes that Bank Branch offices to be acquired: has the financial resources to support the proposed branch. The Board also has reviewed the record before the South (1) 254 Canal Street, New York, New York 10013 Dakota Division of Banking and Finance, including a hear- (2) 50 Bowery, New York, New York 10013 ing before an administrative law judge, which shows sup- (3) 29 Bowery, New York, New York 10002 port in the community for Bank's proposed branch.3 In (4) 40-52 Main Street, Flushing, New York 11354 addition, Bank has a satisfactory record of helping to meet (5) 36-54 Main Street, Flushing, New York 11354 the credit needs of its entire community, including low- and (6) 87-03 Queens Boulevard, Elmhurst, New York 11373 moderate-income neighborhoods, consistent with the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA").4 Bank will also provide automated teller machine services, and intends subsequently to establish drive-up ORDERS ISSUED UNDER FEDERAL RESERVE ACT facilities, as part of this proposal. Bank is a certified Farm- Citizens State Bank ers Home Administration ("FmHA") lender and will pro- Arlington, South Dakota mote FmHA guaranteed loan programs in Castlewood. Based on all the facts of record, including Protestant's Order Approving Establishment of a Branch comments and Bank's responses, supervisory examination information, and evidence from the state's branch approval Citizens State Bank, Arlington, South Dakota ("Bank"), a proceedings, the Board does not believe that Protestant's state member bank, has applied under section 9 of the comments warrant denial of this application. Federal Reserve Act (the "Act") (12 U.S.C. § 321) to estab- Comments from the Individual Protestant criticize Bank's lish a branch office at 108 East Main Street, Castle wood, current president by alleging that Bank improperly has South Dakota. denied Individual Protestant's wife promotional opportuni- Notice of this application, affording interested persons an ties as an employee of Bank, and rejected a loan for opportunity to submit comments, has been published. The Individual Protestant's business. These comments have time for filing comments has expired, and the Board has been carefully considered in light of all the facts of record, considered the application and all comments received in including information provided by Bank, reports of examilight of the factors contained in the Federal Reserve Act. nation, and other information from the Reserve Bank that Bank, with assets of approximately $27.9 million,1 has specifically evaluate Bank's management. Based on this one office at its headquarters in Arlington. This proposal review, and all the facts in this application, the Board does represents Bank's first branch office. not believe that the circumstances described in Individual In acting on branch applications, the Act requires the Protestant's comments warrant denial of this application.5 Board to consider the financial condition of the applying The Board concludes that all the factors required to be bank, the general character of its management, and whether considered under section 9 of the Act and the Board's the corporate powers exercised are consistent with the Act.2 regulations to establish a branch, including the financial The Board has reviewed these factors in light of comments condition of the applicant, the general character of its opposing this proposal from another bank with a branch in management, and the proposed exercise of corporate pow- Castlewood ("Protestant") and comments from an individ- ers, are consistent with approval. ual (the "Individual Protestant") criticizing Bank's current Based on the foregoing and other facts of record, the president. Protestant maintains that Bank does not have the Board has determined that this application should be, and financial resources to support the proposed branch and that hereby is, approved. The Board's approval is specifically the Castlewood community would be unable to support a conditioned on compliance by Bank with all the commitcompetitor institution. Protestant also contends that Bank ments made in connection with these applications. For does not have the technological capacity to serve the credit purposes of this action, these commitments and conditions needs of the community. are considered conditions imposed in writing by the Board The Board has carefully considered Protestant's comments in light of all the facts of record, including financial 3. Protestant also objected to Bank's proposal in the public hearing held as information provided by Bank and information contained in part of the state proceedings. The administrative law judge concluded in reports of examination by Bank's primary federal regulator, these proceedings that there was sufficient community need to support the Federal Reserve Bank of Minneapolis ("Reserve Bank's Castlewood branch and that Bank had the financial and managerial resources to operate the proposed branch. 4. Bank's most recent examination for CRA performance by the Reserve Bank was as of October 1993. 5. The Board also notes that civil courts have the authority to provide this 1. Asset data are as of June 30,1994. commenter with appropriate remedies if he is able to establish grounds for 2. See 12 U.S.C. § 322. such remedies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1995 in connection with its findings and decisions, and, as such, (12 C.F.R. 262.3(b)). Reports on the competitive effects of the may be enforced in proceedings under applicable law. merger were requested from the United States Attorney Gen- This branch shall be in operation no later than one year eral, the Office of Thrift Supervision ("OTS"), and the Federal after the effective date of this order, unless such period is Deposit Insurance Corporation ("FDIC"). The time for filing extended for good cause by the Board or by the Federal comments has expired, and the Board has considered the Reserve Bank of Minneapolis, acting pursuant to delegated applications and all the facts of record in light of the factors set authority. forth in the Bank Merger Act, section 5(d)(3) of the FDI Act, By order of the Board of Governors, effective Novem- and section 9 of the Federal Reserve Act. ber 14, 1994. FSB is a bank subsidiary of Pinnacle Bancorp, Inc., Central City, Nebraska ("Pinnacle"). Pinnacle, with consolidated as- Voting for this action: Chairman Greenspan, Vice Chairman sets of $1.1 billion, is the 13th largest banking organization in Blinder and Governors Kelley, LaWare, Phillips, and Yellen. Ab- Colorado, controlling total deposits of $274.4 million, represent and not voting: Governor Lindsey. senting approximately 1 percent of total deposits in depository institutions in the state.4 Under this proposal, FSB would JENNIFER J. JOHNSON acquire seven Colorado branches of World, which control Deputy Secretary of the Board deposits of $174.5 million, representing less than 1 percent of deposits in depository institutions in the state. Upon acquisition of these branches, Pinnacle would become the eighth ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT largest depository institution in Colorado, controlling deposits INSURANCE CORPORATION IMPROVEMENT ACT of $448.9 million, representing 1.6 percent of total deposits in By the Board depository institutions in the state. First Security Bank Competitive Considerations Fort Lupton, Colorado FSB and World compete directly in the Morgan/Washington County5 and the Yuma County6 banking markets, both in Order Approving Applications to Purchase Certain Assets Colorado.7 Upon consummation of the proposal, FSB would and Assume Certain Liabilities of a Savings and Loan become the largest depository institution in the Morgan/ Association and the Establishment of Branches Washington banking market,8 controlling $106.3 million in deposits in depository institutions in the market ("market First Security Bank, Fort Lupton, Colorado ("FSB"), a state deposits"), representing 28.7 percent of market deposits. member bank, proposes to acquire certain assets and as- The Herfindahl-Hirschman Index ("HHI") would increase sume certain liabilities of seven Colorado branches of World by 349 points to 1998. Savings and Loan Association, Oakland, California A number of factors indicate that the increase in concen- ("World").1 To effect this proposal, FSB has applied under tration levels in both of these markets, as measured by the section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) ("Bank Merger Act"), and section 5(d)(3) of the FDI Act (12 U.S.C. § 1815(d)(3)), as amended 4. Asset, deposit, and market data are as of June 30, 1994. In this context, by the Riegle Community Development and Regulatory depository institutions include commercial banks, savings banks, and savings associations. Improvement Act of 1994, Pub. L. No. 103-325, 319, 108 5. The Morgan/Washington County banking market is defined by Morgan Stat. 2160 (1994).2 FSB also has applied under section 9 of and Washington Counties in Colorado. the Federal Reserve Act (12 U.S.C. § 321 et seq.) to estab- 6. The Yuma County banking market is defined by Yuma County, Colorado. lish and operate branch offices at five of these locations.3 7. FSB has also received approval to open a de novo branch in the Logan Notice of the applications, affording interested persons an County, Colorado, banking market where World has a branch that would be opportunity to submit comments, has been given in accordance acquired under this proposal. If the de novo branch opens before the acquisition is completed, some existing competition would be eliminated, with the Bank Merger Act and the Board's Rules of Procedure however, any effect on competition from this structural change would be minimal. In light of all facts of record, the Board concludes that the acquisition of the branches of World would not have a significant effect on competition in that banking market. 1. See Appendix for list of World branches to be acquired. 8. Market share data before consummation are based on calculations in 2. Because FSB, a state member bank, is a member of the Bank Insurance which the deposits of thrift institutions are included at 50 percent. The Board Fund and is acquiring deposits of branches of World, a member of the previously has indicated that thrift institutions have become, or have the Savings Association Insurance Fund, prior Board approval also is required potential to become, significant competitors of commercial banks. See WM under section 5(d)(3) of the FDI Act. This section requires the Board to Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City Corporafollow the procedures and consider the factors set forth in the Bank Merger tion, 70 Federal Reserve Bulletin 743 (1984). Because World's branches Act. would be transferred to FSB under this proposal, those deposits are included 3. FSB proposes to merge the Brush and Yuma, Colorado, branches of at 100 percent in the calculation of pro forma market share. See Norwest World into FSB's existing branches. The remaining five branches will Corporation, 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 become new branches of FSB. Federal Reserve Bulletin 669 (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 61 HHI, tend to overstate the competitive effects of this pro- applications for the establishment of branches pursuant to posal. In the Morgan/Washington banking market, nine section 9 of the Federal Reserve Act, and finds those factors competitors would remain following consummation of the also are consistent with approval. Moreover, the Board also proposal,9 including two institutions that would control 24.9 has considered the specific factors it must review under percent and 19.9 percent of the market, respectively. In section 5(d)(3) of the FDI Act, and the record in this case addition, over the last two years, World has experienced an shows that: average deposit loss of 6.1 percent per year while almost all (1) The transaction will not result in the transfer of any federof its competitors have shown gains in deposits. Moreover, ally insured depository institution's federal deposit insurance entry by out-of-state bank holding companies into a Colo- from one federal deposit insurance fund to the other, rado banking market is permitted under Colorado law.10 (2) FSB currently meets, and upon consummation of the Colorado also permits limited statewide de novo branch- proposed transaction will continue to meet, all applicable ing,11 and in 1993, a bank from an adjacent county entered capital standards; and the Morgan/Washington banking market de novo.12 (3) The proposed transaction would comply with the Consummation of the proposal in the Yuma County interstate banking provision of the Bank Holding Combanking market would not exceed the Department of Justice pany Act (12 U.S.C. § 1842(d)) if the Colorado branches guidelines. FSB would become the second largest deposi- of World were state banks that FSB was applying to tory institution in the Yuma County banking market, con- acquire directly. See 12 U.S.C. § 1815(d)(3). trolling $46.1 million in deposits, representing 29.3 percent of market deposits. The HHI would increase by 189 points Based on the foregoing and all the facts of record, the to 3072. In addition, FSB proposed to acquire the smallest Board has determined that these applications should be, and market participant, and after consummation of the proposal, hereby are, approved. The Board's approval of these applithe largest depository institution in the market would con- cations is conditioned upon FSB's compliance with the tinue to control over 40 percent of the market deposits. commitments made in connection with these applications. As noted above, the Board sought comments from the This approval is further subject to FSB's obtaining any United States Attorney General, the OTS, and the FDIC on the required approvals under applicable state laws. For the competitive effects of this proposal. The Attorney General has purposes of this action, the commitments and conditions indicated that the proposal is not likely to have a significantly relied on in reaching this decision are both conditions adverse effect on competition in any relevant banking market. imposed in writing by the Board and, as such, may be Neither the OCC nor the FDIC has objected to the acquisition. enforced in proceedings under applicable law. On the basis of all the other facts of record, and for the reasons This transaction may not be consummated before the discussed above, the Board concludes that consummation of fifteenth calendar day following the effective date of this this proposal would not result in significantly adverse effects order, or later than three months after the effective date of on competition or on the concentration of banking resources in this order, unless such period is extended for good cause by any relevant banking market. the Board or by the Federal Reserve Bank of Kansas City, acting pursuant to delegated authority. Other Considerations By order of the Board of Governors, effective November 28, 1994. The Board also concludes that the financial resources and future prospects of FSB and World, and considerations Voting for this action: Chairman Greenspan, Vice Chairman relating to the convenience and needs of the community to Blinder and Governors Kelley, LaWare, Lindsey, Phillips, and Yellen. be served that the Board must consider under the Bank Merger Act, are consistent with approval. In addition, the JENNIFER J. JOHNSON Deputy Secretary of the Board Board has considered the factors it is required to consider in Appendix 9. After consummation of this proposal, a larger number of competitors in Branch offices of World to be acquired by FSB: terms of population per competitor would remain in this banking market (3079 residents per competitor) compared to non-metropolitan banking markets in Colorado (3102 residents per competitor) according to the U.S. (1) 190 Main Street, Akron, Colorado Census Bureau's 1992 population estimates. 10. Colorado's interstate banking statute permits out-of-state bank holding (2) 203 Clayton Street, Brush, Colorado companies nationwide to acquire banking organizations located in Colorado, (3) 401 Main Street, Fort Morgan, Colorado subject to specified statutory requirements and a certification by state banking officials that the acquisition satisfies such requirements. See Colo. Rev. (4) 106 South Interocean Avenue, Holyoke, Colorado Stat. § 11-6.4-103(1993). (5) 106 Cedar Street, Julesburg, Colorado 11. See Colo. Rev. Stat. § 11-25-103 (1993). (6) South 3rd & Ash Street, Sterling, Colorado 12. This bank was subsequently acquired by a large multi-state bank holding company. (7) 315 South Main Street, Yuma, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1995 ACTIONS TAKEN UNDER SECTIONS 5(D)(3) AND 18(C) OF THE FEDERAL DEPOSIT INSURANCE 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. Acquiring Acquired Reserve Approval Bank(s) Thrift Bank Date The Fifth Third Bank, Mutual Federal Savings Cleveland October 28, 1994 Cincinnati, Ohio Bank of Miamisburg, Miamisburg, Ohio APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) ^^ First United Bancshares, Inc., FirstBank, November 16, 1994 El Dorado, Arkansas Texarkana, Texas First United of Texas, Inc., Texarkana, Texas APPLICATIONS APPROVED UNDER BANK HOIDING 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 Amcore Financial, Inc., NBA Holding Company, Chicago November 2, 1994 Rockford, Illinois Aledo, Illinois Ames National Corporation, Randall-Story State Bank, Chicago November 10, 1994 Ames, Iowa Story City, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 63 Section 3—Continued Reserve Effective AApppplliiccaanntt((ss)) BBaannkk((ss)) Bank Date Bellevue Service Company, Bellevue State Bank, Chicago October 31, 1994 Bellevue, Iowa Bellevue, Iowa Bellevue State Bank Employee Bellevue Service Company, Chicago October 31, 1994 Stock Ownership Plan, Bellevue, Iowa Bellevue, Iowa Citizens Bancshares, Inc., Unity Bancorp, Inc., Cleveland October 21, 1994 Salineville, Ohio New Waterford, Ohio Clinton Bancorp, Inc., Clinton Bank, St. Louis November 17, 1994 Clinton, Kentucky Clinton, Kentucky Community First Bankshares, Inc., Minowa Bancshares, Inc., Minneapolis November 1, 1994 Fargo, North Dakota Decorah, Iowa Decatur Investment, Inc., Selden Investment, Inc., Kansas City November 4, 1994 Oberlin, Kansas Selden, Kansas Delhi Bank Corp., The Delaware National New York November 18, 1994 Delhi, New York Bank of Delhi, Delhi, New York Fairbanco Holding Company, Inc. Fairbanco Holding Atlanta November 8, 1994 ESOP, Company, Inc., Fairburn, Georgia Fairburn, Georgia Falcon Bancshares, Inc., Falcon National Bank, Dallas November 23, 1994 Laredo, Texas Laredo, Texas FirstBank Holding Company of FirstBank Holding Company Kansas City November 7, 1994 Colorado Employee Stock of Colorado, Ownership Plan, Lakewood, Colorado Lakewood, Colorado First Citizens BancShares, Inc., Pace American Bank, Richmond October 28, 1994 Raleigh, North Carolina Lawrenceville, Virginia Flint Creek Holding Company, Flint Creek Valley Bank, Minneapolis November 9, 1994 Philipsburg, Montana Philipsburg, Montana Frandsen Financial Corporation, Sturgeon Lake State Bank, Minneapolis November 10, 1994 Forest Lake, Minnesota Sturgeon Lake, Minnesota Franklin Bancorp, Inc., Michael Bancorporation, Minneapolis October 28, 1994 Minneapolis, Minnesota Inc., St. Paul, Minnesota Galatia Bancorp, Inc., Mounds Bancorp, Inc., St. Louis November 8, 1994 Galatia, Illinois Mounds, Illinois Gulf West Banks, Inc., Mercantile Bank, Atlanta November 7, 1994 St. Petersburg, Florida St. Petersburg, Florida Heritage Bancorp, Inc., Hutto State Bank, Dallas November 18, 1994 Hutto, Texas Hutto, Texas Horizon Bancshares, Inc., Horizon Bank of Florida, Atlanta November 8, 1994 Pensacola, Florida Pensacola, Florida KeyCorp, First Citizens Bancorp of Cleveland November 3, 1994 Cleveland, Ohio Indiana, Anderson, Indiana Mediapolis Bancorporation, Mediapolis Savings Bank, Chicago November 16, 1994 Mediapolis, Iowa Mediapolis, Iowa Minnesota Valley Bancshares, Inc., Minnwest, Inc., Minneapolis November 22, 1994 Minnetonka, Minnesota Monnetonka, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1995 Section 3—Continued Reserve Effective AApppplliiccaanntt((ss)) BBaannkk((ss)) Bank Date Norwest Corporation, Ken-Caryl Investment Minneapolis November 8, 1994 Minneapolis, Minnesota Company, Littleton, Colorado Norwest Corporation, Texas National Bankshares, Minneapolis October 28, 1994 Minneapolis, Minnesota Inc., Midland, Texas Pinnacle Banc Group, Inc., Acorn Financial Corp, Chicago November 23, 1994 Oak Brook, Illinois Oak Park, Illinois Premier Bankshares Corporation, Dickenson-Buchanan Bank, Richmond November 23, 1994 Tazewell, Virginia Haysi, Virginia Randall Holding Company, Inc., Randall State Bank, Minneapolis November 8, 1994 Randall, Minnesota Randall, Minnesota Raritan State Bancorp, Inc., Raritan State Bank, Chicago November 10, 1994 Raritan, Illinois Raritan, Illinois Regency Bancorp, Regency Bank, San Francisco November 17, 1994 Fresno, California Fresno, California Regions Corporation, Regions Bank of Louisiana, Atlanta October 27, 1994 Birmingham, Alabama Baton Rouge, Louisiana Regions Financial Corporation, Regions Bank of Louisiana, Atlanta October 27, 1994 Birmingham, Alabama Baton Rouge, Louisiana Regions Corporation, Birmingham, Alabama Riverside Acquisition Corporation, Riverside Bancshares Minneapolis November 7, 1994 Minneapolis, Minnesota Corporation, Minneapolis, Minnesota Riverway Holdings, Inc., Riverway Holdings of Dallas November 23, 1994 Houston, Texas Delaware, Inc., Wilmington, Delaware Riverway Bank, Houston, Texas Riverway Holdings of Delaware, Riverway Bank, Dallas November 23, 1994 Inc., Houston, Texas Wilmington, Delaware Saban S.A., Panama RNYC Holdings Limited, Republic New York New York October 28, 1994 Gibraltar Corporation, New York, New York SN, Ltd., First Western San Francisco October 26, 1994 Moab, Utah Bancorporation, Moab, Utah South Pointe Financial Corporation, South Pointe Bank, St. Louis November 16, 1994 Marion, Illinois Marion, Illinois Valley Financial Corporation, Valley Bank, National Richmond November 15, 1994 Roanoke, Virginia Association, Roanoke, Virginia Westamerica Bancorporation, PV Financial, San Francisco November 17, 1994 San Rafael, California Modesto, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 65 Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Alpha Financial Group, Inc., Alpha Insurance Services, Chicago November 10, 1994 Minonk, Illinois Inc., Minonk, Illinois American Bancorporation, Buckeye Savings Bank, Cleveland October 28, 1994 Wheeling, West Virginia St. Clairsville, Ohio Bellevue State Bank Employee to engage in insurance Chicago October 31, 1994 Stock Ownership Plan, activities Bellevue, Iowa Fifth Third Bancorp, Mutual Federal Savings Cleveland October 28, 1994 Cincinnati, Ohio Bank of Miamisburg, Miamisburg, Ohio First Banks, Inc., River Valley Holdings, Inc., St. Louis October 28, 1994 Clayton, Missouri Chicago, Illinois First of America Bank Corporation, F&C Bancshares, Inc., Chicago November 4, 1994 Kalamazoo, Michigan Murdock, Florida First of America Bank Corporation, Presidential Holding Chicago November 2, 1994 Kalamazoo, Michigan Corporation, Sarasota, Florida Haugo Bancshares, Inc., to engage de novo in Minneapolis November 3, 1994 Sioux Falls, South Dakota making, acquiring, and servicing loans for its own account Norwest Corporation, to engage de novo in the Minneapolis November 22, 1994 Minneapolis, Minnesota following nonbanking Norwest Financial Special Services, activities in the state of Inc., Michigan: (1) consumer Des Moines, Iowa finance; (2) sales finance; Norwest Financial, Inc., and (3) the sale of Des Moines, Iowa bookkeeping, payroll, and other management financial reporting services and data processing services Provident Bancorp, Inc., West Shell Mortgage Cleveland October 31, 1994 Cincinnati, Ohio Company, Cincinnati, Ohio Southern National Banks, Inc., First Appraisal Corporation, Atlanta November 9, 1994 Fort Walton Beach, Florida Fort Walton Beach, Florida Stratford Bancshares, Inc., Panhandle Management Dallas November 16, 1994 Stratford, Texas Corporation, Stratford Bancshares of Delaware, Dumas, Texas Inc., Wilmington, Delaware Summit Financial Corporation, Academy Finance, Inc., Richmond November 18, 1994 Greenville, South Carolina Kingstree, South Carolina E-Z Loans, Inc., Lake City, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1995 Sections 3 and 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Finger Interests Number One, Ltd. CBH, Inc., Dallas November 10, 1994 Houston, Texas Wilmington, Delaware Charter Bancshares, Inc., West Loop Savings & Loan Houston, Texas Association, Houston, Texas NationsBank Corporation, West Loop Savings & Loan Richmond November 10, 1994 Charlotte, North Carolina Association, Houston, Texas APPLICATIONS APPROVED UNDER BANK MERGER 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. Effective Applicant(s) Bank(s) Date Banco Popular de Puerto Rico, The Chase Manhattan Bank, N.A., November 22, 1994 San Juan, Puerto Rico New York, New York Humboldt Bank, U.S. Bank of California November 30, 1994 Eureka, California Sacramento, California 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 F & M Bank-Massanutten, F & M Bank-Broadway, Richmond November 18, 1994 Harrisonburg, Virginia Broadway, Virginia New Pace American Bank, Pace American Bank, Richmond October 28, 1994 Lawrenceville, Virginia Lawrenceville, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 67 Bank Merger Act—Continued » _ . . . Reserve Effective Applicant(s) Bank(s) Date Old Kent Bank and Trust Company, Old Kent Bank of Big Chicago November 21, 1994 Grand Rapids, Michigan Rapids, Big Rapids, Michigan Old Kent Bank of Cadillac, Cadillac, Michigan Old Kent Bank-Central, Owosso, Michigan Old Kent Bank-East, Brighton, Michigan Old Kent Bank of Gaylord, Gaylord, Michigan Old Kent Bank of Grand Haven, Grand Haven, Michigan Old Kent Bank-Grand Traverse, Traverse City, Michigan Old Kent Bank of Hillsdale, Hillsdale, Michigan Old Kent Bank of Holland, Holland, Michigan Old Kent Bank of Ludington, Ludington, Michigan Old Kent Bank of Petoskey, Petoskey, Michigan Old Kent Bank of St. Johns, St. Johns, Michigan Old Kent Bank-Southeast, Trenton, Michigan Old Kent Bank-Southwest, Kalamazoo, Michigan ValliWide Bank, Bank One Fresno, National San Francisco November 14, 1994 Fresno, California Association, Fresno, California Legal Developments continued on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1995 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the assessments by the Board. On August 15,1994, the court of Federal Reserve Banks in which the Board of Governors is appeals affirmed both the asset freeze order obtained by the not named a party. Board and the district court's dismissal of plaintiffs' claims. The appellants filed a petition for certiorari on November Cavallari v. Board of Governors, No. 94-4183 (2d Circuit, 14, 1994. filed October 17, 1994). Petition for review of Board Scott v. Board of Governors, No. 94-0104 (D. D.C., filed order of prohibition against a former outside counsel to a January 21, 1994). Petition for review of a Board order national bank. Petitioner's brief is due on December 9, approving the application of Society Corporation, Cleve- 1994. land, Ohio, to merge with KeyCorp, Albany, New York Board of Governors v. MacCallum, No. 94 Civ. 5652 (WK) (80 Federal Reserve Bulletin 253 (1994)). On July 29, (S.D. New York, filed August 3, 1994). Action to freeze 1994, the Board filed a motion to dismiss. assets of individual pending administrative adjudication of civil money penalty assessment by the Board. On Jackson v. Board of Governors, No. CV-N-93-401-ECR August 3, 1994, the court issued an order temporarily (D. Nev., filed June 14, 1993). Pro se action for restraining the transfer or disposition of the individual's violation of a prisoner's civil rights. On August 23, assets. The order has been amended and continued by 1994, the court granted the Board's motion to dismiss. stipulation. The plaintiff filed a notice of appeal to the Ninth Circuit on September 22, 1994. National Title Resource Agency v. Board of Governors, No. 94-2050 (8th Cir., filed April 28, 1994). Petition for Bennett v. Greenspan, No. 93-1813 (D. D.C., filed April 20, review of Board's order, issued under section 4 of the 1993). Employment discrimination action. A jury verdict Bank Holding Company Act, approving the application for the plaintiff was rendered on October 13, 1994. The of Norwest Corp., Minneapolis, Minnesota, to acquire Board's motion for a new trial on the issue of damages is Double Eagle Financial Corp., Phoenix, Arizona, and its pending. subsidiary, United Title Agency, Inc., and thereby engage Adams v. Greenspan, No. 93-0167 (D. D.C., filed January in title insurance agency activities and real estate settle- 27, 1993). Action by former employee under the Civil ment services (80 Federal Reserve Bulletin 453 (1994)). Rights Act of 1964 and the Rehabilitation Act of 1973 Oral argument was held November 17, 1994. concerning termination of employment. An order dis- Scott v. Board of Governors, No. 94-4117 (10th Cir.), filed missing the case was entered on November 18, 1994. April 28, 1994. Appeal of dismissal of action against Board and others for damages and injunctive relief for Zemel v. Board of Governors, No. 92-1056 (D. D.C., filed alleged constitutional and statutory violations caused by May 4, 1992). Age Discrimination in Employment Act issuance of Federal Reserve notes. The action was dis- case. The parties' cross-motions for summary judgment missed on July 21, 1994. On August 4, 1994, the appel- are pending. lant filed a motion for consideration. Board of Governors v. Ghaith R. Pharaon, No. 91-CIV-6250 Beckman v. Greenspan, No. CV 94-41-BCG-RWA (D. (S.D. New York, filed September 17, 1991). Action to Mont., filed April 13, 1994). Action against Board and freeze assets of individual pending administrative adjudicaothers seeking damages for alleged violations of constitution of civil money penalty assessment by the Board. On tional and common law rights. The Board's motion to September 17, 1991, the court issued an order temporarily dismiss was filed May 19, 1994. restraining the transfer or disposition of the individual's DLG Financial Corp. v. Board of Governors, No. 94-10078 assets. (5th Cir., filed January 20, 1994). Appeal of district court dismissal of appellants' action to enjoin the Board and the FINAL ENFORCEMENT ORDERS ISSUED BY THE Federal Reserve Bank of Dallas from taking certain enforce- BOARD OF GOVERNORS ment actions, and for money damages on a variety of tort and contract theories. The case was consolidated on appeal Bank Saderat Iran with Board of Governors v. DLG Financial Corp., Nos. Tehran 93-2944 and 94-20013 (5th Cir., filed December 14, 1993 and December 31,1993), an appeal of a temporary restrain- The Federal Reserve Board announced on November 29, ing order and a preliminary injunction obtained by the 1994, the issuance of a Cease and Desist Order and an Order Board freezing assets of a corporation and an individual of Assessment of a Civil Money Penalty against Bank Saderat pending administrative adjudication of civil money penalty Iran, Tehran, and Bank Saderat's New York agency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 69 Bank Sepah Iran WRITTEN AGREEMENTS APPROVED BY FEDERAL Tehran RESERVE BANKS The Federal Reserve Board announced on November 29, Bank Melli Iran 1994, the issuance of a Civil Money Penalty against Bank Tehran Sepah Iran, Tehran. Earl E. Echols The Federal Reserve Board announced on November 29, Blackshear, Georgia 1994, the execution of a Written Agreement between the Federal Reserve Bank of New York and the Superintendent of The Federal Reserve Board announced on November 10, Banks of the State of New York and an Order of Assessment 1994, the issuance of an Order of Assessment of a Civil of a Civil Money Penalty against Bank Melli Iran, Tehran, and Money Penalty against Earl E. Echols, a former director of Bank Melli's New York and Los Angeles agencies. The Blackshear Bank, Blackshear, Georgia. CBC Bancorp, Inc. Thomas E. Echols Woodbridge, Connecticut Blackshear, Georgia The Federal Reserve Board announced on November 10, The Federal Reserve Board announced on November 14, 1994, the issuance of an Order of Prohibition and an Order 1994, the execution of a Written Agreement between the of Assessment of a Civil Money Penalty against Thomas E. Federal Reserve Bank of Boston and CBC Bancorp, Inc., Echols, a former institution-affiliated party of The Blacks- Woodbridge, Connecticut. hear Bank, Blackshear, Georgia. First State Bank of Manchester Sebastian Bankshares, Inc. West Manchester, Ohio Barling, Arkansas The Federal Reserve Board announced on November 10, The Federal Reserve Board announced on November 30, 1994, the issuance of Cease and Desist Orders against 1994, the execution of a Written Agreement by and among Sebastian Bankshares, Inc., Barling, Arkansas, and its the Federal Reserve Bank of Cleveland, the Superintendent subsidiary bank, River Valley Bank & Trust, Lavaca, of Banks for the State of Ohio, and the First State Bank of Arkansas. West Manchester, West Manchester, Ohio. 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 A24 Commercial paper and bankers dollar A4 Reserves, money stock, liquid assets, and debt acceptances outstanding measures A25 Prime rate charged by banks on short-term A5 Reserves of depository institutions, Reserve Bank business loans credit A26 Interest rates—money and capital markets A6 Reserves and borrowings—Depository A27 Stock market—Selected statistics institutions 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 A33 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

A72 Federal Reserve Bulletin • January 1995 Domestic Financial Statistics—Continued REPORTED BY BANKS IN THE UNITED STATES REAL ESTATE A55 Liabilities to and claims on foreigners A37 Mortgage markets A56 Liabilities to foreigners A3 8 Mortgage debt outstanding A58 Banks' own claims on foreigners A59 Banks' own and domestic customers' claims on CONSUMER INSTALLMENT CREDIT foreigners A59 Banks' own claims on unaffiliated foreigners A39 Total outstanding A60 Claims on foreign countries—Combined A39 Terms domestic offices and foreign branches FLOW OF FUNDS REPORTED BY NONBANKING BUSINESS A40 Funds raised in U.S. credit markets ENTERPRISES IN THE UNITED STATES A42 Summary of financial transactions A43 Summary of credit market debt outstanding A61 Liabilities to unaffiliated foreigners A44 Summary of financial assets and liabilities A62 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS SELECTED MEASURES A63 Foreign transactions in securities A64 Marketable U.S. Treasury bonds and A45 Nonfinancial business activity—Selected notes—Foreign transactions measures A45 Labor force, employment, and unemployment A46 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A47 Industrial production—Indexes and gross value A49 Housing and construction A65 Discount rates of foreign central banks A50 Consumer and producer prices A65 Foreign short-term interest rates A51 Gross domestic product and income A66 Foreign exchange rates A52 Personal income and saving A67 Guide to Statistical Releases and Special Tables International Statistics SUMMARY STATISTICS A53 U.S. international transactions—Summary A54 U.S. foreign trade A54 U.S. reserve assets A54 Foreign official assets held at Federal Reserve Banks A55 Selected U.S. liabilities to foreign official institutions 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 Nonfinancial Statistics • January 1995 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1993 1994 1994 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Q1 Q2 Q3 June July Aug/ Sept.1 Oct. Reserves of depository institutions2 1 Total 14.2 3.1 -4.4 -2.5 -4.0 2.2 -6.0 -.7 -6.1 2 Required 14.1 2.5 -3.6 -2.6 -8.0 2.2 -4.0 -1.9 -.8 3 Nonborrowed 15.6 3.7 -5.4 -4.2 -6.7 -.3 -6.3 -1.1 -4.0 4 Monetary base3 9.8 10.2 8.4 7.3 7.7 8.1 6.3 5.4 6.7 Concepts of money, liquid assets, and debf 5 Ml 9.4 6.0 1.9 33..CC 3.7 7.1r -2.2 1.0 -3.6 6 M2 2.3 1.9 1.9 .7' -2.3 4.7 -2.0 -.5 -1.2 7 M3 2.6 .3 .7 1.7r .0 6.r -2.1 1.2 3.4 8 L 2.0 2.5 1.2 1.3 -1.9 7.2r -2.0 -2.2 n.a. 9 Debt 4.9 5.3 5.4 4.1 3.5r 2.4r 5.9 5.3 n.a. Nontransaction components 10 In M25 -.8 .0 2.0 -,4r -5.1 3.6r -2.0 -1.2 .0 11 InM3 only6 4.0 -8.0 -6.2 7.0r 13.3 13.5 -2.8 10.8 28.6 Time and savings deposits Commercial banks 12 Savings, including MMDAs 3.6 4.3 -3.3 -4.1 -7.7 -2.2' -2.8 -3.6 -12.1 13 Small time7 -7.4 -5.2 .1 8.9 6.7 5.7 15.4 11.9 17.0 14 Large time8,9 -.4 -2.6 -2.5r 10.1r .(f 7.0r 14.3 21.4 29.9 Thrift institutions 15 Savings, including MMDAs -.4 .5 .2 -11. f -10.3 -9.3 -17.0 -16.6 -16.0 16 Small time7 -9.4 -11.5 -7.5 -2.4r -5.1 .0 -3.2 2.4 13.4 17 Large time8 -6.7 -8.5 -6.5 4.8 6.0 15.9 -5.9 23.6 23.2 Money market mutual funds 18 General purpose and broker-dealer 1.2 -.1 17.7 11..0011 -19.1 14.0 -2.0 -2.0 8.9 19 Institution-only 8.8 -26.7 -22.8 -6.0 1.4 9.9 -11.2 -9.9 52.9 Debt components4 20 Federal 6.1 7.3 5.5 3.9 4.9 l.lr 6.1 6.1 n.a. 21 Nonfederal 4.5 4.6 5.4r 4.1 2.9 3.0 5.8 5.1 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts Kingdom and Canada, and (3) balances in both taxable and tax-exempt, institution-only outstanding during preceding month or quarter. money market funds. Excludes amounts held by depository institutions, the U.S. govern- 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with ment, money market funds, and foreign banks and official institutions. Also excluded is regulatory changes in reserve requirements. (See also table 1.20.) the estimated amount of overnight RPs and Eurodollars held by institution-only money 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally market funds. Seasonally adjusted M3 is computed by adjusting its non-M2 component as adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency a whole and then adding this result to seasonally adjusted M2. component of the money stock, plus (3) (for sill quarterly reporters on the "Report of L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury Transaction Accounts, Other deposits and Vault Cash" and for all weekly reporters securities, commercial paper, and bankers acceptances, net of money market fluid holdwhose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted ings of these assets. Seasonally adjusted L is computed by summing U.S. savings bonds, difference between current vault cash and the amount applied to satisfy current reserve short-term Treasury securities, commercial paper, and bankers acceptances, each seasonrequirements. ally adjusted separately, and then adding this result to M3. 4. Composition of the money stock measures and debt is as follows: Debt: The debt aggregate is the outstanding credit market debt of the domestic Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of nonfinancial sectors—the federal sector (U.S. government, not including governmentdepository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all sponsored enterprises or federally related mortgage pools) and the nonfederal sectors commercial banks other than those owed to depository institutions, the U.S. government, (state and local governments, households and nonprofit organizations, nonfinancial corpoand foreign banks and official institutions, less cash items in the process of collection and rate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of Federal Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository paper, and other loans. The data, which are derived from the Federal Reserve Board's institutions, credit union share draft accounts, and demand deposits at thrift institutions. flow of funds accounts, are break-adjusted (that is, discontinuities in the data have been Seasonally adjusted Ml is computed by summing currency, travelers checks, demand smoothed into the series) and month-averaged (that is, the data have been derived by deposits, and OCDs, each seasonally adjusted separately. averaging adjacent month-end levels). M2: Ml plus (1) overnight (and continuing contract) repurchase agreements (RPs) 5. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund issued by all depository institutions and overnight Eurodollars issued to U.S. residents by balances (general purpose and broker-dealer), (3) savings deposits (including MMDAs), foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small and (4) small time deposits. time deposits (time deposits—including retail RPs—in amounts of less than $100,000), 6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. and (3) balances in both taxable and tax-exempt general-purpose and broker-dealer residents, and (4) money market fund balances (institution-only), less (S) a consolidation money market funds. Excludes individual retirement accounts (IRlAs) and Keogh balances adjustment that represents the estimated amount of overnight RPs and Eurodollars held by at depository institutions and money market funds. Also excludes all balances held by institution-only money market funds. This sum is seasonally adjusted as a whole. U.S. commercial banks, money market funds (general purpose and broker-dealer), 7. Small time deposits—including retail RPs—are those issued in amounts of less foreign governments and commercial banks, and the U.S. government. Seasonally ad- than $100,000. All IRA and Keogh account balances at commercial banks and thrift justed M2 is computed by adjusting its non-Mi component as a whole and then adding institutions are subtracted from small time deposits. this result to seasonally adjusted Ml. 8. Large time deposits are those issued in amounts of $100,000 or more, excluding M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of $100,000 or those booked at international banking facilities. more) issued by all depository institutions, (2) term Eurodollars held by U.S. residents at 9. Large time deposits at commercial banks less those held by money market fluids, foreign branches of U.S. banks worldwide and at all banking offices in the United depository institutions, the U.S. government, and foreign banks and official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1 Millions of dollars Average of Average of daily figures for week ending on date indicated daily figures 1994 1994 Aug. Sept. Oct. Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 390,696 392,939r 394,856 394,266 393,002 391,811 393,136 396,235 394,426 394,749 U.S. government securities2 2 Bought outright—System account ... 348,753 354,429 354,275 355,484 354,977 353,810 353,769 356,211 353,754 353,467 3 Held under repurchase agreements .. 3,299 296 1,648 309 0 0 917 1,052 1,791 2,211 Federal agency obligations 4 Bought outright 3,883 3,822 3,772 3,828 3,817 3,812 3,806 3,793 3,762 3,757 5 Held under repurchase agreements .. 880 346 349 1,000 0 0 159 559 161 448 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 26 45 20 9 60 94 49 12 10 32 8 Seasonal credit 446 448 344 424 443 472 424 381 348 303 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 522 730r 559 535 832 467 517 444 719 535 11 Other Federal Reserve assets 32,887 32,824 33,890 32,677 32,874 33,156 33,495 33,783 33,882 33,996 12 Gold stock 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,054 11,053 13 Special drawing rights certificate account . 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 14 Treasury currency outstanding 22,636 22,698 22,758 22,688 22,702 22,716 22,730 22,744 22,758 22,772 ABSORBING RESERVE FUNDS 15 Currency in circulation 384,403 386,408 388,817 387,573 385,861 385,137 386,399 389,497 389,572 388,763 16 Treasury cash holdings 354 372 367 371 384 365 364 369 367 371 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,220 5,953 5,553 5,576 7,367 6,195 6,150 5,594 5,112 5,078 18 Foreign 188 199 192 171 179 229 263 191 177 176 19 Service-related balances and adjustments 5,551 5,156 4,851 5,134 5,101 5,099 5,032 5,054 4,697 4,715 20 Other 311 325 336 316 331 300 330 339 346 325 21 Other Federal Reserve liabilities and capital 11,187 11,178 11,724 11,144 11,151 11,384 11,853 11,851 11,420 11,672 22 Reserve balances with Federal Reserve Banks3 25,190 25,119" 24,847 25,741 24,404 24,890 24,546 25,157 24,566 25,492/ End-of-month figures Wednesday figures Aug. Sept. Oct. Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 393,969 393,466r 395,756 393,482 393,163 387,959 393,065 393,716 395,316 395,802 U.S. government securities2 2 Bought outright—System account . 349,110 353,010 352,313 355,896 354,496 349,846 354,761 353,925 353,103 356,241 3 Held under repurchase agreements 6,519 2,140 3,615 0 0 0 0 0 4,180 1,139 Federal agency obligations 4 Bought outright 3,837 3,806 3,744 3,817 3,817 3,806 3,806 3,762 3,762 3,744 5 Held under repurchase agreements 1,732 370 400 0 0 0 0 0 375 500 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 35 69 17 13 301 92 12 10 11 82 8 Seasonal credit 459 436 247 432 459 478 389 373 326 288 9 Extended credit 0 0 0 0 0 0 0 0 0 0 0 Float 317 188r 579 539 1,085 529 421 1,804 -281 -231 1 Other Federal Reserve assets 31,960 33,448 34,841 32,785 33,005 33,209 33,677 33,841 33,840 34,039 12 Gold stock 11,054 11,054 11,053 11,054 11,054 11,054 11,054 11,054 11,053 11,053 13 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 14 Treasury currency outstanding 22,660 22,730 22,786 22,688 22,702 22,716 22,730 22,744 22,758 22,772 ABSORBING RESERVE FUNDS 15 Currency in circulation 386,010 385,516 389,604 387,485 386,072 386,277 388,318 390,785 389,807 389,675 16 Treasury cash holdings 368 363 363 387 366 363 369 367 372 363 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,994 6,848 5,164 5,581 11,359 6,658 5,283 5,022 5,510 5,912 18 Foreign 188 342 223 192 188 399 181 165 170 178 19 Service-related balances and adjustments 5,514 5,032r 4,790 5,134 5,101 5,099 5,032 5,054 4,697 4,715 20 Other 289 318 392 286 300 256 335 326 280 320 21 Other Federal Reserve liabilities and capital 10,864 12,012 12,584 11,003 10,948 11,181 11,657 11,182 11,247 11,452 22 Reserve balances with Federal Reserve Banks3 26,476 24,837r 24,494 25,173 20,604 19,513 23,693 22,632 25,064 25,030 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 3. Excludes required clearing balances and adjustments to compensate for float. 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • January 1995 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1991 1992 1993 1994 Dec. Dec. Dec. Apr. May June July Aug. Sept.r Oct. 1 Reserve balances with Reserve Banks2 26,659 25,368 29,374 29,614 26,790 26,502 25,996 25,284 25,157 24,747 2 Total vault cash3 32,509 34,542 36,812 35.215 35,892 36,898 37,635 37,614 38,431 38,231 3 Applied vault cash4 28,872 31,172 33,484 32,027 32,483 33,422 34,096 34,052 34,794 34,754 4 Surplus vault cash5 3,637 3,370 3,328 3,188 3,409 3,476 3,539 3,562 3,637 3,476 5 Total reserves6 55,532 56,540 62,858 61,641 59,273 59,924 60,092 59,337 59,951 59,501 6 Required reserves 54,553 55,385 61,795 60,489 58,358 58,819 58,985 58,333 58,891 58,704 7 Excess reserve balances at Reserve Banks7 979 1,155 1,063 1,151 915 1,105 1,107 1,004 1,060 797 8 Total borrowings at Reserve Banks8 192 124 82 124 200 333 458 469 487 380 9 Seasonal borrowings 38 18 31 57 134 226 364 445 444 339 10 Extended credit9 1 1 0 0 0 0 0 0 0 0 Biweekly averages of daily figures for two week periods ending on dates indicated 1994 July 6 July 20 Aug. 3 Aug. 17 Aug. 31 Sept. 14 Sept. 28r Oct. 12' Oct. 26 Nov. 9 1 Reserve balances with Reserve Banks2 26,239 26,908 24,703 25,594 25,099 25,720 24,641 24,824 25,023 23,786 2 Total vault cash3 37,012 37,179 38,557 38,114 36,913 38,451 38,397 38,539 37,608 39,236 3 Applied vault cash4 33,571 33,754 34,818 34,486 33,455 34,839 34,700 35,138 34,137 35,565 4 Surplus vault cash5 3,441 3,425 3,739 3,628 3,458 3,612 3,697 3,401 3,472 3,671 5 Total reserves 59,810 60,662 59,521 60,080 58,554 60,559 59,341 59,962 59,159 59,350 6 Required reserves 58,330 59,902 58,176 59,141 57,559 59,643 58,138 58,907 58,587 58,545 7 Excess reserve balances at Reserve Banks7 1,480 760 1,346 939 995 917 1,204 1,055 572 805 8 Total borrowings at Reserve Banks8 568 412 458 442 498 447 535 433 346 351 9 Seasonal borrowings 292 357 413 430 468 437 458 403 326 223 10 Extended credit9 0 1 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For cash applied during the maintenance period by "nonbound" institutions (that is, those ordering address, see inside front cover. whose vault cash exceeds their required reserves) to satisfy current reserve requirements. 2. Excludes required clearing balances and adjustments to compensate for float and 5. Total vault cash (line 2) less applied vault cash (line 3). includes other off-balance-sheet "as-of' adjustments. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3. Total "lagged" vault cash held by depository institutions subject to reserve 3). requirements. Dates refer to the maintenance periods during which the vault cash may be 7. Total reserves (line 5) less required reserves (line 6). used to satisfy reserve requirements. The maintenance period for weekly reporters ends 8. Also includes adjustment credit. sixteen days after the lagged computation period during which the vault cash is held. 9. Consists of borrowing at the discount window under the terms and conditions Before Nov. 25, 1992, the maintenance period ended thirty days after the lagged established for the extended credit program to help depository institutions deal with computation period. sustained liquidity pressures. Because there is not the same need to repay such borrowing 4. All vault cash held during the lagged computation period by "bound" institutions promptly as with traditional short-term adjustment credit, the money market impact of (that is, those whose required reserves exceed their vault cash) plus the amount of vault extended credit is similar to that of nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1994, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 73,232 69,219 68,194 69,421 73,249 76,739 74,555 68,759 69,873 2 For all other maturities 12,222 12,379 13,519 13,863 12,920 12,492 12,889 13,879 15,923 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 14,414 17,530 17,530 21,105 20,162 19,205 18,386 18,240 16,902 4 For all other maturities 24,114 22,508 21,881 21,300 21,455 20,655 20,607 22,922 22,242 Repurchase agreements on US. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 20,501 23,144 21,588 22,503 23,178 23,964 24,034 22,995 22,000 6 For all other maturities 30,996 32,875 33,104 32,287 29,333 29,910 28,918 33,192 32,215 All other customers 7 For one day or under continuing contract 34,038 33,613 32,897 32,826 33,965 33,091 33,451 33,799 32,802 8 For all other maturities 16,693 16,345 16,393 17,661 16,814 16,528 16,698 17,004 17,134 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 57,438 51,871 55,427 61,185r 60,790 58,607 59,293 56,776 59,630 10 To all other specified customers 24,467 21,256 21,439 22,985 21,031 21,283 21,488 21,415 21,842 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, foreign Data in this table also appear in the Board's H.S (507) weekly statistical release. For banks and official institutions, and US. government agencies, ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • January 1995 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 12 O /2 n /9 4 Effective date Previous rate 12 O /2 n /9 4 Effective date Previous rate 12 O /2 n /9 4 Effective date Previous rate B N o e s w to Y n ork 4. i 7 5 1 1 1 1 / / 1 1 6 5 / / 9 9 4 4 4.00 5.60 11/2 i 5 /94 5.i2 0 6. t 1 0 11/2 i 5 /94 5.70 Philadelphia 11/17/94 Cleveland 11/16/94 Richmond 11/16/94 Atlanta 11/16/94 Chicago 11/17/94 St. Louis 11/15/94 Minneapolis 11/16/94 Kansas City 11/15/94 Dallas 11/16/94 San Francisco 4.75 11/15/94 4.00 5.60 11/25/94 5.20 6.10 11/25/94 5.70 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date l A ev ll e l F ) . — R. B o an f k Effectiv l A ev ll e l F ) . — R. B o an f k Effective date l A ev ll e l F ) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 6 6 1981—May 5 13-14 14 1987—Sept. 4 5.5-6 6 14 14 11 6 6 1978—Jan. 9 6-6.5 6.5 Nov. 2 13-14 13 20 6.5 6.5 6 13 13 1988—Aug. 9 6-6.5 6.5 May 11 6.5-7 7 Dec. 4 12 12 11 6.5 6.5 12 7 7 July 3 7-7.25 7.25 1982—July 20 11.5-12 11.5 1989—Feb. 24 6.5-7 7 10 7.25 7.25 23 11.5 11.5 27 7 7 Aug. 21 7.75 7.75 Aug. 2 11-11.5 11 Sept. 22 8 8 3 11 11 1990—Dec. 19 6.5 6.5 Oct. 16 8-8.5 8.5 16 10.5 10.5 20 8.5 8.5 27 10-10.5 10 1991—Feb. 1 6-6.5 6 Nov. 1 8.5-9.5 9.5 30 10 10 4 6 6 3 9.5 9.5 Oct. 12 9.5-10 9.5 Apr. 30 5.5-6 5.5 13 9.5 9.5 May 2 5.5 5.5 1979—July 20 10 10 Nov. 22 9-9.5 9 Sept. 13 5-5.5 5 Aug. 17 10-10.5 10.5 26 9 9 17 5 5 20 10.5 10.5 Dec. 14 8.5-9 9 Nov. 6 4.5-5 4.5 Sept. 19 10.5-11 11 15 8.5-9 8.5 7 4.5 4.5 21 11 11 17 8.5 8.5 Dec. 20 3.5-4.5 3.5 Oct. 8 11-12 12 24 3.5 3.5 10 12 12 1984—Apr. 9 8.5-9 9 13 9 9 1992—July 2 3-3.5 3 1980—Feb. 15 12-13 13 Nov. 21 8.5-9 8.5 7 3 3 19 13 13 26 8.5 8.5 May 29 12-13 13 Dec. 24 8 8 1994—May 17 3-3.5 3.5 30 12 12 18 3.5 3.5 June 13 11-12 11 1985—May 20 7.5-8 7.5 Aug. 16 3.5-4 4 16 11 11 24 7.5 7.5 18 4 4 July 28 10-11 10 Nov. 15 4-4.75 4.75 29 10 10 1986—Mar. 7 7-7.5 7 17 4.75 4.75 Sept. 26 11 U 10 7 7 Nov. 17 12 12 Apr. 21 6.5-7 6.5 Dec. 5 12-13 13 July 11 6 6 In effect Dec. 2, 1994 4.75 4.75 Aug. 21 5.5-6 5.5 22 5.5 5.5 1. Available on a short-term basis to help depository institutions meet temporary needs thirty days; however, at the discretion of the Federal Reserve Bank, this time period may for funds that cannot be met through reasonable alternative sources. The highest rate be shortened. Beyond this initial period, a flexible rate somewhat above rates charged on established for loans to depository institutions may be charged on adjustment credit loans market sources of funds is charged. The rate ordinarily is reestablished on the first of unusual size that result from a major operating problem at the borrower's facility. business day of each two-week reserve maintenance period, but it is never less than the 2. Available to help relatively small depository institutions meet regular seasonal needs discount rate applicable to adjustment credit plus SO basis points. for funds that arise from a clear pattern of intrayearly movements in their deposits and 4. For earlier data, see the following publications of the Board of Governors: Banking loans and that cannot be met through special industry lenders. The discount rate on and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest, seasonal credit takes into account rates charged by market sources of funds and ordinarily 1970-1979. is reestablished on the first business day of each two-week reserve maintenance period; In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustmenthowever, it is never less than the discount rate applicable to adjustment credit. credit borrowings by institutions with deposits of $500 million or more that had borrowed 3. May be made available to depository institutions when similar assistance is not in successive weeks or in more than four weeks in a calendar quarter. A 3 percent reasonably available from other sources, including special industry lenders. Such credit surcharge was in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 may be provided when exceptional circumstances (including sustained deposit drains, percent was reimposed on Nov. 17, 1980; the surcharge was subsequently raised to 3 impaired access to money market funds, or sudden deterioration in loan repayment percent on Dec. 5, 1980, and to 4 percent on May 5,1981. The surcharge was reduced to 3 performance) or practices involve only a particular institution, or to meet the needs of percent effective Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, institutions experiencing difficulties adjusting to changing market conditions over a longer 1981, the formula for applying the surcharge was changed from a calendar quarter to a period (particularly at times of deposit disintermediation). The discount rate applicable to moving thirteen-week period. The surcharge was eliminated on Nov. 17,1981. adjustment credit ordinarily is charged on extended-credit loans outstanding less than 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 accounts3 1 $0 million-$54.0 million.. 12/20/94 2 More than $54.0 million4 . 12/20/94 3 Nonpersonal time deposits^ 12/27/90 4 Eurocurrency liabilities6... 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve no more than three may be checks (accounts subject to such limits are considered savings Banks or vault cash. Nonmember institutions may maintain reserve balances with a deposits). Federal Reserve Bank indirectly, on a pass-through basis, with certain approved The Monetary Control Act of 1980 requires that the amount of transaction accounts institutions. For previous reserve requirements, see earlier editions of the Annual against which the 3 percent reserve requirement applies be modified annually by 80 Report or the Federal Reserve Bulletin. Under provisions of the Monetary Control Act percent of the percentage change in transaction accounts held by all depository instituof 1980, depository institutions include commercial banks, mutual savings banks, tions, determined as of June 30 of each year. Effective Dec. 20, 1994, the amount was savings and loan associations, credit unions, agencies and branches of foreign banks, increased from $51.9 million to $54.0 million. and Edge Act corporations. 4. The reserve requirement was reduced from 12 percent to 10 percent on 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97-320) Apr. 2,1992, for institutions that report weekly, and on Apr. 16,1992, for institutions that requires that $2 million of reservable liabilities of each depository institution be subject to report quarterly. a zero percent reserve requirement. The Board is to adjust the amount of reservable 5. For institutions that report weekly, the reserve requirement on nonpersonal time liabilities subject to this zero percent reserve requirement each year for the succeeding deposits with an original maturity of less than 1 VS years was reduced from 3 percent to calendar year by 80 percent of the percentage increase in the total reservable liabilities of 1 Vi percent for the maintenance period that began Dec. 13, 1990, and to zero for the all depository institutions, measured on an annual basis as of June 30. No corresponding maintenance period that began Dec. 27, 1990. The reserve requirement on nonpersonal adjustment is to be made in the event of a decrease. On Dec. 20, 1994, the exemption was time deposits with an original maturity of 1 '/i years or more has been zero since Oct. 6, raised from $4.0 million to $4.2 million. The exemption applies only to accounts that 1983. would be subject to a 3 percent reserve requirement. For institutions that report quarterly, the reserve requirement on nonpersonal time 3. Includes all deposits against which the account holder is permitted to make with- deposits with an original maturity of less than 1 years was reduced from 3 percent to drawals by negotiable or transferable instruments, payment orders of withdrawal, and zero on Jan. 17, 1991. telephone and preauthorized transfers for the purpose of making payments to third persons 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to or others, other than money market deposit accounts (MMDAs) and similar accounts that zero in the same manner and on the same dates as was the reserve requirement on permit no more than six preauthorized, automatic, or other transfers per month, of which nonpersonal time deposits with an original maturity of less than 1 Vi years (see note 5). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • January 1995 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1994 TTyypp aa ee nn dd oo ff mm ttrr aa aa tt nn uu ss rrii aa tt cc yy tt iioonn 11999911 11999922 11999933 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 20,158 14,714 17,717 900 1,101 1,395 4,143 0 1,610 0 2 Gross sales 120 1,628 0 0 0 0 0 0 0 0 3 Exchanges 277,314 308,699 332,229 33,163 28,881 29,807 39,484 29,559 36,281 29,668 4 Redemptions 1,000 1,600 468 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 3,043 1,096 1,223 147 209 155 0 0 0 151 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 24,454 36,662 31,368 0 2,316 0 1,197 0 0 0 8 Exchanges -28,090 -30,543 -36,582 -3,605 -907 0 -3,192 0 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 1,413 2,817 0 0 0 0 2,530 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shifts -21,211 -34,478 -27,140 0 1,607 0 -1,197 0 0 0 13 Exchanges 24,594 25,811 0 3,605 907 0 3,192 0 0 0 Five to ten years 14 Gross purchases 1,280 2,818 4,168 1,103 1,117 0 0 0 0 938 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shifts -2,037 -1,915 0 0 709 0 0 0 0 0 17 Exchanges 2,894 3,532 0 0 0 0 0 0 0 0 More than ten years 18 Gross purchases 375 2,333 3,457 618 8% 0 0 0 0 840 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,209 -269 0 0 0 0 0 0 0 0 21 Exchanges 600 1,200 0 0 0 0 0 0 0 0 All maturities 22 Gross purchases 31,439 34,079 36,915 4,181 6,140 1,550 4,143 0 1,610 4,459 23 Gross sales 120 1,628 0 0 0 0 0 0 0 0 24 Redemptions 1,000 1,600 468 0 440 0 0 0 0 11 Matched transactions 25 Gross sales 1,570,456 1,482,467 1,475,085 155,950 120,393 137,458 133,939 125,181 170,356 151,589 26 Gross purchases 1,571,534 1,480,140 1,475,941 155,625 120,512 137,195 133,075 126,677 169,018 151,029 Repurchase agreements 27 Gross purchases 310,084 378,374 475,447 38,490 19,741 21,517 10,059 28,085 44,948 4,975 28 Gross sales 311,752 386,257 470,723 38,115 25,041 17,112 4,405 35,374 41,199 9,354 29 Net change in U.S. Treasury securities 29,729 20,642 42,027 4,232 519 5,691 8,933 -5,793 4,022 -490 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 1,072 108 180 70 58 322 63 20 Repurchase agreements 33 Gross purchases 22,807 14,565 35,063 3,160 728 4,195 580 9,472 8,491 3,620 34 Gross sales 23,595 14,486 34,669 3,170 878 2,895 1,300 8,702 8,109 4,982 35 Net change in federal agency obligations -1,085 -554 -678 -118 -330 1,230 -778 448 319 -1,382 36 Total net change in System Open Market Account 28,644 20,089 41,348 4,114 189 6,921 8,155 —5,345 4,341 —1,872 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 AAAccccccooouuunnnttt 1994 1994 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Aug. 31 Sept. 30 Oct. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,054 11,054 11,054 11,053 11,053 11,054 11,054 11,053 2 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 3 Coin 339 350 352 350 348 315 360 360 Loans 4 To depository institutions 570 401 384 337 370 494 504 264 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 3,806 3,806 3,762 3,762 3,744 3,837 33,,880066 33,,774444 8 Held under repurchase agreements 0 0 0 375 500 1,732 370 400 9 Total U.S. Treasury securities 349,846 354,761 353,925 357,283 357,380 355,629 355,150 355,928 10 Bought outright2 349,846 354,761 353,925 353,103 356,241 349,110 353,010 352,313 11 Bills 166,621 171,536 170,700 170,857 173,995 170,345 169,785 169,617 12 Notes 141,389 141,389 141,389 140,410 140,410 138,006 141,389 140,860 13 Bonds 41,836 41,836 41,836 41,836 41,836 40,760 41,836 41,836 14 Held under repurchase agreements 0 0 0 4,180 1,139 6,519 2,140 3,615 15 Total loans and securities 354,222 358,967 358,070 361,757 361,994 361,692 359,830 360,336 16 Items in process of collection 5,037 6,332 10,084 5,629 5,113 5,125 4,104 2,477 17 Bank premises 1,068 1,068 1,069 1,070 1,071 1,065 1,068 1,068 Other assets 18 Denominated in foreign currencies 22,690 23,206 23,223 23,239 23,257 22,624 23,197 23,922 19 All other" 9,448 9,457 9,660 9,520 9,754 8,341 9,218 9,848 20 Total assets 411,876 418,453 421,529 420,638 420,608 418,233 416,848 417,080 LIABILITIES 21 Federal Reserve notes 364,263 366,306 368,759 367,771 367,614 364,032 363,509 367,540 22 Total deposits 32,014 34,856 33,543 36,516 36,848 38,753 37,562 35,050 23 Depository institutions 24,701 29,057 28,030 30,557 30,438 32,282 30,054 29,271 24 U.S. Treasury—General account 6,658 5,283 5,022 5,510 5,912 5,994 6,848 5,164 25 Foreign—Official accounts 399 181 165 170 178 188 342 223 26 Other 256 335 326 280 320 289 318 392 27 Deferred credit items 4,417 5,633 8,045 5,103 4,695 4,584 3,765 1,906 28 Other liabilities and accrued dividends 3,607 3,576 3,565 3,608 3,775 3,632 3,831 3,992 29 Total liabilities 404,302 410,371 413,912 412,999 412,931 411,001 408,667 408,488 CAPITAL ACCOUNTS 30 Capital paid in 3,607 3,614 3,618 3,639 3,641 3,588 3,608 3,643 31 Surplus 3,401 3,401 3,401 3,401 3,401 3,383 3,401 3,401 32 Other capital accounts 566 1,066 598 599 634 262 1,172 1,548 33 Total liabilities and capital accounts 411,876 418,453 421,529 420,638 420,608 418,233 416,848 417,080 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 398,798 397,222 400,556 402,593 406,989 398,851 399,937 407,851 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 448,609 448,780 448,721 449,559 449,975 442,669 449,006 449,946 36 LESS: Held by Federal Reserve Banks 84,346 82,474 79,962 81,787 82,361 78,637 85,498 82,406 37 Federal Reserve notes, net 364,263 366,306 368,759 367,771 367,614 364,032 363,509 367,540 Collateral held against notes, net 38 Gold certificate account 11,054 11,054 11,054 11,053 11,053 11,054 11,054 11,053 39 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 345,191 347,234 349,687 348,700 348,543 344,960 344,437 348,469 42 Total collateral 364,263 366,306 368,759 367,771 367,614 364,032 363,509 367,540 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 in 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged Treasury bills maturing within ninety days. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought 5. Includes exchange-translation account reflecting the monthly revaluation at market back under matched sale-purchase transactions. exchange rates of foreign exchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • January 1995 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 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Aug. 31 Sept. 30 Oct. 31 1 Total loans 570 401 384 337 370 512 504 264 2 Within fifteen days1 510 114 99 305 342 417 264 133 3 Sixteen days to ninety days 60 287 285 32 29 95 240 131 4 Ninety-one days to one year 0 0 0 0 0 0 0 0 5 Total acceptances 0 0 0 0 0 0 0 0 6 Within fifteen days1 0 0 0 0 0 0 0 0 7 Sixteen days to ninety days 0 0 0 0 0 0 0 0 8 Ninety-one days to one year 0 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 349,846 354,761 353,925 357,283 357,380 355,629 353,010 352,313 10 Within fifteen days1 9,781 17,446 16,189 19,951 16,161 18,290 5,373 10,538 11 Sixteen days to ninety days 82,848 80,073 80,364 84,550 84,387 83,811 87.966 83,281 12 Ninety-one days to one year 109,710 108,492 108,623 104,493 108,543 110,330 110,922 109,980 13 One year to five years 87,052 88,294 88,294 88,239 88,239 84,522 88,294 88,463 14 Five years to ten years 26,116 26,116 26,116 25,711 25,711 25,178 26,116 25,711 15 More than ten years 34,339 34,339 34,339 34,339 34,339 33,499 34,339 34,339 16 Total federal agency obligations 3,806 3,806 3,762 4,137 4,244 5,569 3,806 3,744 17 Within fifteen days1 230 30 18 512 619 2,022 230 119 18 Sixteen days to ninety days 546 771 780 661 683 448 546 725 19 Ninety-one days to one year 780 755 728 728 789 763 780 747 20 One year to five years 1,666 1,676 1,676 1,676 1,603 1,752 1,666 1,603 21 Five years to ten years 559 549 535 535 525 559 559 525 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 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 . Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 1 Total reserves3 41.77 45.53 54.34 60.48 60.59 60.33 59.91 59.71 59.82 59.52 59.48r 59.18 2 Nonborrowed reserves4 41.44 45.34 54.22 60.39 60.53 60.21 59.71 59.37 59.36 59.05 59.00 58.80 3 Nonborrowed reserves plus extended credit5.... 41.47 45.34 54.22 60.39 60.53 60.21 59.71 59.37 59.36 59.05 59.00 58.80 4 Required reserves 40.11 44.55 53.19 59.41 59.62 59.18 59.00 58.60 58.71 58.51 58.42 58.38 5 Monetary base6 293.16 317.12 350.61 385.86 397.01 399.20 401.73 404.32 407.04 409.18 411.03r 413.34 Not seasonally adjusted 6 Total reserves 43.07 46.98 56.06 62.37 59.50 61.40 58.97 59.56 59.66 58.84 59.39 58.88 7 Nonborrowed reserves 42.74 46.78 55.93 62.29 59.44 61.27 58.77 59.22 59.20 58.37 58.90 58.50 8 Nonborrowed reserves plus extended credit5 42.77 46.78 55.93 62.29 59.44 61.27 58.77 59.22 59.20 58.37 58.90 58.50 9 Required reserves8 41.40 46.00 54.90 61.31 58.53 60.25 58.06 58.45 58.55 57.84 58.33 58.08 10 Monetary base9 296.68 321.07 354.55 390.59 394.15 399.76 400.26 404.72 408.17 408.95 411.05 412.78 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 11 Total reserves" 59.12 55.53 56.54 62.86 59.61 61.64 59.27 59.92 60.09 59.34 59.95r 59.50 12 Nonborrowed reserves 58.80 55.34 56.42 62.78 59.55 61.52 59.07 59.59 59.63 58.87 59.47 59.12 13 Nonborrowed reserves plus extended credir 58.82 55.34 56.42 62.78 59.55 61.52 59.07 59.59 59.64 58.87 59.47 59.12 14 Required reserves 57.46 54.55 55.39 61.80 58.64 60.49 58.36 58.82 58.99 58.33 58.89 58.70 15 Monetary base 313.70 333.61 360.90 397.62 400.78 406.32 406.59 410.94 414.39 414.90 416.65' 418.13 16 Excess reserves'3 1.66 .98 1.16 1.06 .97 1.15 .92 1.11 1.11 1.00 1.06 .80 17 Borrowings from the Federal Reserve .33 .19 .12 .08 .06 .12 .20 .33 .46 .47 .49 .38 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) reserve requirements, a multiplicative procedure is used to estimate what required weekly statistical release. Historical data starting in 1959 and estimates of the impact on reserves would have been in past periods had current reserve requirements been in effect. required reserves of changes in reserve requirements are available from the Money and Break-adjusted required reserves include required reserves against transactions deposits Reserves Projections Section, Division of Monetary Affairs, Board of Governors of the and nonpersonal time and savings deposits (but not reservable nondeposit liabilities). Federal Reserve System, Washington, DC 20551. 9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regula- plus (2) the (unadjusted) currency component of the money stock, plus (3) (for all tory changes in reserve requirements. (See also table 1.10) quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- Cash" and for all those weekly reporters whose vault cash exceeds their required adjusted required reserves (line 4) plus excess reserves (line 16). reserves) the break-adjusted difference between current vault cash and the amount applied 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally ad- to satisfy current reserve requirements. justed, break-adjusted total reserves (line 1) less total borrowings of depository institu- 10. Reflects actual reserve requirements, including those on nondeposit liabilities, with tions from the Federal Reserve (line 17). no adjustments to eliminate the effects of discontinuities associated with regulatory 5. Extended credit consists of borrowing at the discount window under changes in reserve requirements. the terms and conditions established for the extended credit program to help depository 11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy institutions deal with sustained liquidity pressures. Because there is not the same need to reserve requirements. repay such borrowing promptly as with traditional short-term adjustment credit, the 12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) money market impact of extended credit is similar to that of nonborrowed reserves. total reserves (line 11), plus (2) required clearing balances and adjustments to compensate 6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally for float at Federal Reserve Banks, plus (3) the currency component of the money stock, adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency plus (4) (for all quarterly reporters on the "Report of Transaction Accounts, Other component of the money stock, plus (3) (for all quarterly reporters on the "Report of Deposits and Vault Cash" and for all those weekly reporters whose vault cash exceeds Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters their required reserves) the difference between current vault cash and the amount applied whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted to satisfy current reserve requirements. Since the introduction of contemporaneous reserve difference between current vault cash and the amount applied to satisfy current reserve requirements in February 1984, currency and vault cash figures have been measured over requirements. the computation periods ending on Mondays. 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). excess reserves (line 16). 8. To adjust required reserves for discontinuities that are due to regulatory changes in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • January 1995 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1994 1990 1991 1992 1993 IItteemm Dec. Dec. Dec. Dec. July' Aug.' Sept.' Oct. Seasonally adjusted Measures2 1 Ml 826.4 897.7 1,024.8 1,128.4 1,153.1 1,151.0 1,152.0 1,148.5 2 M2 3,353.0 3,455.3 3,509.0 3,568.0 3,603.5 3,597.4 3,596.0 3,592.5 3 M3 4,125.7 4,180.4 4,183.1 4,232.1 4,250.5 4,242.9 4,247.2 4,259.3 4 L 4,974.8 4,992.9 5,057.2 5,134.5 5,188.2 5,179.4 5,170.1 n.a. 5 Debt 10,690.2r ll,168.2r 11,699.1' 12,325.6' 12,660.7 12,722.6 12,779.3 n.a. Ml components 6 Currency3 246.7 267.1 292.2 321.4 343.2 345.4 347.3 349.9 7 Travelers checks4 7.8 7.7 8.1 7.9 8.2 8.3 8.4 8.4 8 Demand deposits5 277.9 290.0 339.6 384.8 389.1 387.5 388.1 385.9 9 Other checkable deposits6 294.0 332.8 384.9 414.3 412.5 409.8 408.2 404.3 Nontransaction components 10 In M27 2,526.6 2,557.6 2,484.3 2,439.6 2,450.4 2,446.4 2,444.0 2,443.9 11 In M38 only 772.7 725.2 674.1 664.1 647.0 645.5 651.3 666.8 Commercial banks 12 Savings deposits, including MMDAs 582.1 665.5 754.6 785.3 777.8 776.0 773.7 765.9 13 Small time deposits9 611.3 602.9 508.7 468.5 468.8 474.8 479.5 486.3 14 Large time deposits10' " 368.6 342.4 292.8 277.1 276.5 279.8 284.8 291.9 Thrift institutions 15 Savings deposits, including MMDAs 338.3 375.6 429.0 430.2 424.7 418.7 412.9 407.4 16 Small time deposits9 563.2 464.5 361.8 317.2 303.8 303.0 303.6 307.0 17 Large time deposits10 120.9 83.4 67.5 61.8 61.2 60.9 62.1 63.3 Money market mutual funds 18 General purpose and broker-dealer 355.5 370.4 352.0 348.8 363.5 362.9 362.3 365.0 19 Institution-only 135.0 181.0 201.5 197.0 170.9 169.3 167.9 175.3 Debt components 20 Federal debt 2,490.3 2,763.3 3,067.9 3,327.4 3,419.3 3,436.6 3,454.0 n.a. 21 Nonfederal debt 8,199.9r 8,404.9r 8,631.2' 8,998.1' 9,241.4 9,286.0 9,325.4 n.a. Not seasonally adjusted Measures2 22 Ml 843.8 916.7 1,046.7 1,153.8 1,151.0 1,144.0 1,146.1 1,147.4 23 M2 3,366.0 3,470.4 3,527.6 3,590.6 3,599.8 3,589.7 3,585.5 3,590.8 24 M3 4,135.5 4,191.9 4,198.3 4,251.5 4,243.5 4,238.9 4,236.5 4,253.9 25 L 4,997.2 5,018.0 5,087.7 5,169.4 5,173.5 5,168.7 5,158.0 n.a. 26 Debt 10,687.2' 11,165.5' 11,701.9' 12,321.3' 12,620.4 12,674.4 12,735.6 n.a. Ml components 27 Currency3 249.5 269.9 295.0 324.9 344.9 345.7 347.1 349.6 28 Travelers checks4 7.4 7.4 7.8 7.6 8.8 8.9 8.8 8.5 29 Demand deposits5 289.9 303.1 355.1 402.6 388.4 384.2 385.7 389.0 30 Other checkable deposits6 297.0 336.3 388.9 418.6 408.9 405.2 404.5 400.3 Nontransaction components 31 In M27 2,522.3 2,553.7 2,480.9 2,436.8 2,448.8 2,445.7 2,439.4 2,443.4 32 In M38 769.5 721.6 670.6 660.9 643.7 649.2 651.0 663.1 Commercial banks 33 Savings deposits, including MMDAs 580.8 664.0 752.9 783.9 779.6 776.6 772.4 765.2 34 Small time deposits9 610.5 601.9 507.8 467.6 469.8 475.8 480.9 487.2 35 Large time deposits10' " 367.7 341.3 291.7 276.0 276.2 281.6 285.9 291.7 Thrift institutions 36 Savings deposits, including MMDAs 337.6 374.8 428.1 429.4 425.7 419.0 412.2 407.1 37 Small time deposits9 562.4 463.8 361.2 316.5 304.5 303.7 304.5 307.6 38 Large time deposits10 120.6 83.1 67.2 61.6 61.1 61.3 62.3 63.2 Money market mutual funds 39 General purpose and broker-dealer 353.8 368.5 350.2 347.2 360.0 360.2 357.5 360.9 40 Institution-only 134.7 180.4 200.4 195.8 167.4 169.5 165.1 170.5 Repurchase agreements and Eurodollars 41 Overnight and continuing 77.3 8800..66 8800..77 92.3 109.2 110.5 111.9 115.5 42 Term 158.3 130.1 126.8 143.8 154.0 151.6 152.5 152.9 Debt components 43 Federal debt 2,491.3 2,765.0 3,069.8 3,329.5 3,393.9 3,418.4 3,438.4 n.a. 44 Nonfederal debt 8,400.6' 8,632.1' 8,991.8' 9,226.5 9,256.0 9,297.2 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) short-term Treasury securities, commercial paper, and bankers acceptances, each seasonweekly statistical release. Historical data starting in 1959 are available from the Money ally adjusted separately, and then adding this result to M3. and Reserves Projections Section, Division of Monetary Affairs, Board of Governors of Debt: The debt aggregate is the outstanding credit market debt of the domestic the Federal Reserve System, Washington, DC 20551. nonfinancial sectors—the federal sector (U.S. government, not including government- 2. Composition of the money stock measures and debt is as follows: sponsored enterprises or federally related mortgage pools) and the nonfederal sectors Ml: (1) currency outside the US. Treasury, Federal Reserve Banks, and the vaults of (state and local governments, households and nonprofit organizations, nonfinancial corpodepositoiy institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all rate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of commercial banks other than those owed to depository institutions, the US. government, mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial and foreign banks and official institutions, less cash items in the process of collection and paper, and other loans. The data, which are derived from the Federal Reserve Board's flow Federal Reserve float, and (4), other checkable deposits (OCDs), consisting of negotiable of funds accounts, are break-adjusted (that is, discontinuities in the data have been order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository smoothed into the series) and month-averaged (that is, the data have been derived by institutions, credit union share draft accounts, and demand deposits at thrift institutions. averaging adjacent month-end levels). Seasonally adjusted Ml is computed by summing currency, travelers checks, demand 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of deposideposits, and OCDs, each seasonally adjusted separately. tory institutions. M2: Ml plus (1) overnight (and continuing contract) repurchase agreements (RPs) 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issued by all depository institutions and overnight Eurodollars issued to U.S. residents by issuers. Travelers checks issued by depository institutions are included in demand foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small deposits. time deposits (time deposits—including retail RPs—in amounts of less than $100,000), 5. Demand deposits at commercial banks and foreign-related institutions other than and (3) balances in both taxable and tax-exempt general-purpose and broker-dealer those owed to depository institutions, the U.S. government, and foreign banks and official money market funds. Excludes individual retirement accounts (IRAs) and Keogh balances institutions, less cash items in the process of collection and Federal Reserve float. at depository institutions and money market funds. Also excludes all balances held by 6. Consists of NOW and ATS account balances at all depository institutions, credit U.S. commercial banks, money market funds (general purpose and broker-dealer), foreign union share draft account balances, and demand deposits at thrift institutions. governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is 7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund computed by adjusting its non-Mi component as a whole and then adding this result to balances (general purpose and broker-dealer), (3) savings deposits (including MMDAs), seasonally adjusted Ml. and (4) small time deposits. M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of $100,000 or 8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. residents, more) issued by all depository institutions, (2) term Eurodollars held by U.S. residents at and (4) money market fund balances (institution-only), less (5) a consolidation adjustment foreign branches of U.S. banks worldwide and at all banking offices in the United that represents the estimated amount of overnight RPs and Eurodollars held by institution- Kingdom and Canada, and (3) balances in both taxable and tax-exempt, institution-only only money market funds. money market funds. Excludes amounts held by depository institutions, the U.S. govern- 9. Small time deposits—including retail RPs—are those issued in amounts of less ment, money market funds, and foreign banks and official institutions. Also excluded is than $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions the estimated amount of overnight RPs and Eurodollars held by institution-only money are subtracted from small time deposits. market funds. Seasonally adjusted M3 is computed by adjusting its non-M2 component as 10. Large time deposits are those issued in amounts of $100,000 or more, excluding a whole and then adding this result to seasonally adjusted M2. those booked at international banking facilities. L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury 11. Large time deposits at commercial banks less those held by money market funds, securities, commercial paper, and bankers acceptances, net of money market fund hold- depository institutions, the U.S. government, and foreign banks and official institutions. ings of these assets. Seasonally adjusted L is computed by summing U.S. savings bonds, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • January 1995 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1994 1992 1993 Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Interest rates (annual effective yields) INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts 2.33 1.86 1.84 1.82 1.82 1.81 1.83 1.82 1.83 1.85 1.87 2 Savings deposits2 2.88 2.46 2.46 2.43 2.43 2.45 2.50 2.54 2.57 2.63 2.67 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 2.90 2.65 2.65 2.68 2.76 2.87 2.99 3.08 3.17 3.29 3.36 4 92 to 182 days 3.16 2.91 2.90 2.94 3.02 3.13 3.28 3.36 3.44 3.61 3.75 5 183 days to 1 year 3.37 3.13 3.14 3.18 3.27 3.42 3.64 3.76 3.88 4.11 4.27 6 More than 1 year to 2 V5 years 3.88 3.55 3.56 3.61 3.69 3.87 4.12 4.26 4.39 4.61 4.80 7 More than 2\/l years 4.77 4.29 4.31 4.35 4.46 4.67 4.89 5.02 5.14 5.33 5.47 BIF-INSURED SAVINGS BANKS3 8 Negotiable order of withdrawal accounts 2.45 1.87 1.89 1.88 1.83 1.86 1.86 1.88 1.89 1.89 1.91 9 Savings deposits 3.20 2.63 2.62 2.64 2.63 2.65 2.67 2.69 2.67 2.74 2.78 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 3.13 2.70 2.69 2.69 2.71 2.72 2.77 2.84 2.98 3.03 3.11 11 92 to 182 days 3.44 3.02 3.03 3.04 3.08 3.13 3.21 3.41 3.53 3.69 3.87 12 183 days to 1 year 3.61 3.31 3.33 3.34 3.37 3.47 3.67 3.92 4.02 4.24 4.47 13 More than 1 year to 2'/i years 4.02 3.66 3.72 3.76 3.85 3.96 4.12 4.38 4.56 4.83 5.04 14 More than Vfi years 5.00 4.62 4.61 4.66 4.75 4.85 5.08 5.24 5.35 5.47 5.64 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts 286,541 305,223 293,806 295,573 297,496 293,888 292,797 290,220 290,631 295,320 286,787 16 Savings deposits 738,253 766,413 771,559 776,204 779,340 771,869 773,170 767,539 765,751 764,035 755,249 17 Personal 578,757 597,838 606,615 611,725 615,875 611,720 612,648 608,132 605,881 600,892 595,175 18 Nonpersonal 159,496 168,575 164,944 164,479 163,465 160,149 160,522 159,407 159,870 163,143 160,074 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 38,474 29,455 29,312 29,578 29,539 29,467 29,950 28,763 28,659 27,959 28,312 20 92 to 182 days 127,831 110,069 109,110 109,444 107,407 105,615 104,400 102,439 100,424 98,085 96,398 21 183 days to 1 year 163,098 146,565 144,037 143,624 144,022 146,733 148,102 151,165 152,216 155,964 157,253 22 More than 1 year to 2 V5 years 152,977 141,223 141,204 141,006 139,946 139,313 140,764 144,686 146,875 150,807 152,514 23 More than 2 Vi years 169,708 181,528 182,193 181,240 180,973 181,977 180,381 181,843 182,944 186,490 190,209 24 IRA and Keogh plan deposits 147,350 143,985 143,875 143,409 142,002 142,448 142,047 142,513 142,649 142,617 142,700 BIF-INSURED SAVINGS BANKS3 25 Negotiable order of withdrawal accounts 10,871 11,151 10,796 10,870 11,078 11,051 11,052 10,792 10,925 11,016 10,769 26 Savings deposits2 81,786 80,115 78,660 78,016 78,701 78,982 78,817 77,289 77,337 75,108 74,659 27 Personal 78,695 77,035 75,445 74,756 75,444 75,717 75,474 74,121 74,064 72,040 71,525 28 Nonpersonal 3,091 3,079 3,215 3,260 3,257 3,265 3,344 3,168 3,273 3,068 3,134 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 3,867 2,793 2,737 2,735 2,671 2,697 2,702 2,614 2,531 2,523 2,402 30 92 to 182 days 17,345 12,946 13,094 13,165 13,177 13,058 12,822 12,515 12,511 12,292 12,276 31 183 days to 1 year 21,780 17,426 17,418 17,436 17,511 17,504 17,444 17,310 17,591 17,593 17,928 32 More than 1 year to 2V4 years 18,442 16,546 16,281 16,338 16,180 16,453 16,477 16,493 16,901 16,824 17,287 33 More than 2 vi years 18,845 20,464 20,630 20,939 21,110 21,454 21,546 21,079 21,573 21,531 21,923 34 IRA and Keogh plan accounts 21,713 19,356 19,395 19,474 19,447 19,860 19,772 19,511 19,757 19,445 19,532 1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6 (508) deposits and foreign currency-denominated deposits. Data exclude retail repurchase Special Supplementary Table monthly statistical release. For ordering address, see inside agreements and deposits held in U.S. branches and agencies of foreign banks. front cover. Estimates are based on data collected by the Federal Reserve System from a 2. Includes personal and nonpersonal money market deposits. stratified random sample of about 460 commercial banks and 80 savings banks on the last 3. Includes both mutual and federal savings banks. Wednesday of each period. Data are not seasonally adjusted and include IRA and Keogh 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 1994 BBaannkk ggrroouupp,, oorr ttyyppee ooff ddeeppoossiitt Mar. Apr. May June Jul/ Aug. DEBITS Seasonally adjusted Demand deposits3 1 All insured banks 277,741.7 313,179.6 334,375.0 393,886.4 352,714.2 376,238.0 371,523.9 345,269.3 384,057.0 2 Major New York City banks 137,337.2 165,484.6 171,310.7 210,684.5 184,409.0 200,277.8 195,079.4 182,408.3 196,505.5 3 Other banks 140,404.5 147,695.1 163,064.2 183,201.9 168,305.2 175,960.2 176,444.5 162,861.0 187,551.5 4 Other checkable deposits4 3,643.1 3,780.7 3,468.9 3,882.4 3,573.7 3,868.1 3,845.3 3,502.4 3,868.1 5 Savings deposits (including MMDAs)5 3,206.4 3,310.6 3,511.0 3,918.6 3,458.4 3,530.6 3,817.0 3,444.8 3,895.1 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 803.7 825.8 785.4 873.5 778.6 834.0 828.6 756.3 852.4 7 Major New York City banks 4,267.1 4,794.5 4,200.5 4,798.4 4,233.3 4,714.9 4,480.9 4,074.6 4,635.6 8 Other banks 448.1 428.7 423.7 450.1 411.1 430.6 435.8 395.5 459.5 9 Other checkable deposits4 16.2 14.4 11.8 12.9 11.9 12.8 12.7 11.5 12.8 10 Savings deposits (including MMDAs)5 5.2 4.7 4.6 5.0 4.4 4.5 4.9 4.5 5.1 DEBITS Not seasonally adjusted Demand deposits3 11 All insured banks 277,752.4 313,344.9 334,354.6 406,836.2 350,136.0 364,471.2 387,227.2 347,414.6 394,406.9 12 Major New York City banks 137,307.2 165,595.0 171,283.5 218,783.5 181,272.6 188,885.2 204,251.8 182,452.9 202,845.6 13 Other banks 140,445.2 147,749.9 163,071.0 188,052.6 168,863.5 175,586.0 182,975.4 164,961.6 191,561.2 14 Other checkable deposits4 3,645.2 3,783.6 3,467.5 3,889.4 3,781.8 3,685.2 3,902.5 3,508.9 3,855.9 15 Savings deposits (including MMDAs)5 3,209.2 3,310.0 3,509.5 3,882.9 3,633.8 3,567.4 3,940.0 3,562.3 3,916.6 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 803.6 826.1 785.4 923.3 771.4 823.3 868.4 762.0 889.5 17 Major New York City banks 4,269.0 4,803.5 4,197.9 5,140.2 4,228.8 4,449.3 4,878.2 4,150.3 4,960.2 18 Other banks 448.1 428.8 423.8 472.4 410.8 438.7 452.8 400.4 475.9 19 Other checkable deposits4 16.2 14.4 11.8 12.9 12.3 12.3 13.0 11.7 12.9 20 Savings deposits (including MMDAs)5 5.2 4.7 4.6 5.0 4.6 4.6 5.1 4.6 5.1 1. Historical tables containing revised data for earlier periods can be obtained from the 3. Represents accounts of individuals, partnerships, and corporations and of states and Publications Section, Division of Support Services, Board of Governors of the Federal political subdivisions. Reserve System, Washington, DC 20551. 4. As of January 1994, other checkable deposits (OCDs), previously defined as Data in this table also appear in the Board's G.6 (406) monthly statistical release. For automatic transfer to demand deposits (ATSs) and negotiable order of withdrawal (NOW) ordering address, see inside front cover. accounts, were expanded to include telephone and preauthorized transfer accounts. This 2. Annual averages of monthly figures. change redefined OCDs for debits data to be consistent with OCDs for deposits data. 5. Money market deposit accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • January 1995 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS' Billions of dollars Monthly averages Wednesday figures Account 1993 1994 1994 Oct. Apr.' May' June' July' Aug.' Sept.' Oct. Oct. 5 Oct. 12 Oct. 19 Oct. 26 ALL COMMERCIAL BANKING INSTITUTIONS Seasonally adjusted Assets 1 Bank credit 3,075^ 3,206.0 3211.7 3223.9 3258.9 3269.3 3278.5 3286.1 3280.3 3276.3 3,289.0 32928 2 Securities in bank credit 899.8 976.5 9723 975.1 978.9 971.1 966.9 957.2 955.8 951.5 958.7 961.5 3 U.S. government securities 717.4 757.4 750.5 751.4 751.2 746.2 740.1 727.8 729.0 728.5 727.8 727.0 4 Other securities 182.4 219.1 221.8 223.6 227.7 224.9 226.9 229.4 226.7 2229 230.9 234.5 S Loans and leases in bank credit2 ... 2,175.2 2,229.5 2239.4 2248.8 2280.0 2298.2 2311.6 2329.0 2324.6 2324.8 2330.3 2331.3 6 Commercial and industrial 585.9 602.0 607.0 610.1 618.7 623.4 627.8 633.7 631.2 631.3 635.1 635.2 7 Real estate 927.01 946.4 948.9 956.0 9627 971.4 978.9 983.6 981.1 981.6 983.9 984.5 8 Revolving home equity 73.8 73.4 73.7 74.1 74.2 74.4 74.7 75.0 74.7 74.8 75.1 75.2 9 Other 853.1 873.0 875.2 881.9 888.5 897.0 904.2 908.6 906.4 906.8 908.9 909.3 10 Consumer 384.7' 408.8 4123 416.0 424.0 430.0 434.9 441.8 440.4 441.6 4427 441.0 11 Security3 81.8 77.0 77.5 76.2 77.7 75.0 69.2 721 70.6 71.2 73.7 73.2 12 Other 195.7 195.3 193.6 190.5 197.0 198.4 200.9 197.8 201.2 199.1 194.9 197.4 13 Interbank loans4 151.6 148.5 158.1 157.0 160.5 159.1 160.0 163.4 154.8 169.4 156.3 171.5 14 Cash assets5 220.4 209.1 216.1 214.5 210.9 203.3 2024 209.7 2120 2125 205.9 210.4 15 Other assets6 218.5 219.8 225.5 219.9 227.2 228.6 222.4 223.1 224.2 224.4 224.3 221.1 16 Total assets7 3,606-2 3,7263 3,7543 3,7583 3^00.0 3^03.0 3^05.9 3*825.0 3,8143 3,825.0 3£1&2 3£3&5 Liabilities 17 Deposits 2^23.9 2,506.6 2520.1 2507.0 2513.4 2517.0 2520.5 2534.5 2534.6 2538.7 2523.7 2543.5 18 Transaction 810.2 800.3 8121 808.8 809.8 807.6 803.2 806.9 810.9 814.2 796.5 811.7 19 Nontransaction 1,713.7 1,706.3 1,707.9 1,698.2 1,703.6 1,709.4 1,717.3 1,727.6 1,723.6 1,724.5 1,727.2 1,731.8 20 Large time 346.2 335.3 338.1 334.4 339.2 3426 348.9 357.6 353.0 355.5 358.4 360.4 21 Other 1367.5 1371.0 1369.8 1,363.8 1364.4 1366.8 1368.4 1370.0 1370.6 1369.0 1368.8 1371.4 22 Borrowings 518.1 580.8 573.4 568.9 571.9 567.6 576.7 576.1 555.9 561.1 577.2 597.1 23 From banks in the U.S 153.8 148.9 159.5 155.3 161.7 158.6 156.8 164.5 153.3 171.4 159.1 171.8 24 From nonbanks in the U.S 364.4 431.9 413.9 413.6 410.3 409.0 419.9 411.6 4026 389.7 418.1 425.3 25 Net due to related foreign offices 123.6 173.6 174.5 184.6 200.8 211.2 215.6 214.0 221.1 213.3 218.5 2125 26 Other liabilities8 144.4 173.4 177.3 171.7 177.8 1729 172.3 173.4 172.0 173.0 173.7 1727 27 Total liabilities 3,310.1 3,4344 3,4453 3*432.1 3,463.9 3/168* 3/185.2 3/198.0 3/183.5 3/186.1 3/193-2 3^25.7 28 Residual (assets less liabilities)9 296.1 2920 309.1 326.2 336.1 334.2 320.7 327.0 330.8 338.9 325.0 312.7 Not seasonally adjusted Assets 29 Bank credit 3,077.7' 3,203.9 3,200.3 3,219.1 3,242.5 3,261.1 3,278.8 3,289.9 3,280.6 3,279.2 3,293.5 3,290.3 30 Securities in bank credit 902.0 977.0 967.9 971.6 9726 970.5 968.4 961.8 958.1 956.3 963.0 964.3 31 U.S. government securities 719.1' 759.6 747.6 749.0 745.5 745.4 741.6 729.4 730.2 729.1 730.4 727.6 32 Other securities 182.9 217.4 220.3 2226 227.1 225.0 226.8 2324 228.0 227.2 2326 236.8 33 Loans and leases in bank credit2 ... 2,175.7 2226.9 2232.4 2247.4 2269.9 2290.6 2310.5 2328.2 23225 23228 2330.5 2325.9 34 Commercial and industrial 583.9 604.9 608.5 611.1 616.5 619.6 624.0 631.5 629.7 628.4 6325 631.8 35 Real estate 929.4' 944.5 949.3 956.5 963.5 970.4 979.1 985.3 983.3 984.7 984.9 984.9 36 Revolving home equity 74.5 72.9 73.5 73.9 74.0 74.4 75.0 75.7 75.3 75.5 75.7 75.9 37 Other 854.9r 871.6 875.8 8825 889.5 896.0 904.1 909.6 908.0 909.2 909.2 909.0 38 Consumer 384.tf 405.6 411.1 414.1 421.3 429.3 436.1 441.6 440.2 440.7 4424 441.3 39 Security3 80.6 79.6 73.4 74.3 725 724 68.3 70.9 66.4 69.3 74.2 71.2 40 Other 197.0 1923 190.1 191.5 196.1 198.8 203.0 198.8 2028 199.8 196.6 196.7 41 Interbank loans4 150.7 150.0 153.3 154.6 156.0 155.5 157.2 161.4 155.8 168.2 154.3 1627 42 Cash assets5 219.7 206.5 213.6 2122 207.5 197.7 204.0 209.0 205.9 225.9 204.1 198.5 43 Other assets6 221.0 216.4 2226 217.3 225.4 226.9 223.6 225.6 226.3 228.9 223.3 222.4 44 Total assets7 3,610.0 3,719.7 3,7317 3,746L2 3,774.7 3,784.1 3,806.4 3JS2&9 3^11.6 3,845.1 3,8183 .W6.9 Liabilities 45 Deposits 2515.9 2513.2 2508.8 2508.6 2507.3 2505.4 2^17.3 2525.6 2536.6 2551.5 2507.6 2,502.0 46 Transaction 804.3 808.6 800.8 807.2 801.9 7924 799.8 800.6 811.9 826.7 784.2 777.8 47 Nontransaction 1,711.6 1,704.6 1,708.0 1,701.4 1,705.4 1,713.0 1,717.5 1,725.0 1,724.7 1,724.8 1,723.4 1,724.2 48 Large time 342.4 336.5 342.1 337.2 339.5 344.2 348.5 353.6 350.7 351.5 353.8 355.7 49 Other 1,369.3 1368.1 1365.9 1,364.2 1365.9 1368.8 1369.0 1371.4 1374.0 1373.3 1369.6 1368.5 50 Borrowings 526.5 556.8 561.0 575.1 579.8 583.3 588.4 590.3 568.4 584.2 591.8 599.3 51 From banks in the U.S 151.0 150.0 153.4 154.7 156.0 155.5 157.2 161.4 155.8 168.2 154.3 1627 52 From nonbanks in the U.S 375.5 406.7 407.6 420.4 423.8 427.7 431.2 429.0 4127 416.0 437.5 436.6 53 Net due to related foreign offices 124.2 172.5 180.1 179.8 1929 200.4 203.7 2127 209.8 211.6 219.1 215.4 54 Other liabilities8 147.1 167.4 1725 167.8 174.1 1724 1729 176.9 174.8 175.1 176.0 176.7 55 Total liabilities 3,313.7 3/109.9 3/1224 3,4313 3/454.0 3/461.5 3/1824 3^05.6 3/189.7 3,5225 3/1915 3/1934 56 Residual (assets less liabilities)9 296.3 309.8 310.3 315.0 320.6 3226 324.0 323.3 321.9 322.6 323.8 323.6 Footnotes appear on last page. 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Commercial Banking Institutions A19 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1—Continued Billions of dollars Monthly averages Wednesday figures Account 1993 1994 1994 Oct. Apr/ Mayr Juner Jul/ Aug/ Sept/ Oct. Oct. 5 Oct. 12 Oct. 19 Oct. 26 DOMESTICALLY CHARTERED COMMERCIAL BANKS Seasonally adjusted Assets 57 Bank credit 2,738.4 2,856.4 2,863.8 2,877.1 2901.6 29128 2919.6 2,930.0 2921.4 2919.0 22993311..22 2937.8 •>8 Securities in bank credit 822.4r 889.0 885.3 886.2 891.5 882.5 875.9 867.8 864.4 860.9 868.0 873.4 59 U.S. government securities 665,3r 695.5 691.8 690.8 691.2 685.8 678.8 669.7 669.3 669.0 668.9 670.3 60 Other securities 157.1 193.5 193.5 195.5 200.3 196.7 197.1 198.1 195.1 191.9 199.1 203.1 61 Loans and leases in bank credit2 1,916.0 1,967.4 1,978.5 1,990.9 2010.1 2,030.3 2,043.7 2,0622 2057.0 2058.1 2063.2 2064.4 6? Commercial and industrial 433.8 448.8 4520 455.6 460.8 464.2 467.9 471.6 471.2 470.5 471.8 4722 63 Real estate 879.6 902.9 905.7 9128 920.4 929.3 937.1 9429 940.2 940.8 943.1 943.9 64 Revolving home equity 73.8 73.3 73.7 74.0 74.2 74.4 74.7 75.0 74.7 74.8 75.1 75.2 65 Other 805.8 829.6 8320 838.8 846.2 854.9 862.4 867.9 865.5 866.0 868.0 868.7 66 Consumer 384.7r 408.8 412.3 416.0 424.0 430.0 434.9 441.8 440.4 441.6 4427 441.0 67 Security3 56.9 49.5 51.2 49.6 46.5 47.0 43.4 46.7 44.8 45.3 48.3 48.0 68 Other 161.0 157.4 157.2 157.0 158.5 159.9 160.5 159.1 160.4 159.8 157.2 159.3 69 Interbank loans4 129.8 123.7 1321 131.8 134.0 134.5 1363 138.7 126.8 141.8 135.3 147.8 70 Cash assets5 193.7 183.0 189.1 188.6 185.5 179.6 180.7 187.0 189.8 189.1 183.2 186.8 71 Other assets6 173.3 1727 173.4 167.1 171.6 173.5 168.8 168.6 170.4 169.7 169.1 166.5 72 Total assets7 3,175.9 3^78.7 33014 3307.7 33354 3343.1 33484 3367.0 33513 33620 33614 3381.8 Liabilities 73 Deposits 2,371.4 2363.8 2376.4 2369.0 2371.3 2371.9 2368.5 2374.9 2375.5 2380.3 2363.1 23821 74 Transaction 797.9 790.1 801.9 798.4 799.9 797.8 793.3 797.4 801.5 804.3 787.2 8021 75 Nontransaction 1,573.5 1,573.7 1,574.5 1,570.6 1,571.5 1374.1 1375.2 1377.4 1374.0 1376.1 1375.9 1379.9 76 Large time 211.8 208.5 209.9 210.1 211.4 2125 211.2 214.4 210.9 212.8 214.5 215.6 77 Other 1,361.7 1,365.2 1364.6 1360.5 1,360.1 1,361.6 1364.0 1363.1 1363.0 1363.3 1361.4 1364.4 78 Borrowings 411.9 477.9 471.0 4624 461.9 460.7 473.3 477.5 459.3 4623 478.1 496.8 79 From banks in the U.S 120.5 128.7 138.5 131.9 140.6 139.5 139.0 148.2 139.3 155.4 142.0 153.9 80 From nonbanks in the U.S 291.4 349.2 332.5 330.5 321.4 321.2 334.2 329.2 320.0 306.9 336.1 3429 81 Net due to related foreign offices -6.2 21.2 25.3 326 44.7 53.4 59.9 64.6 68.5 61.6 71.0 6644..33 82 Other liabilities8 105.6 1320 133.7 128.9 131.5 126.5 127.1 126.5 126.0 125.7 127.3 126.3 83 Total liabilities 2^82.7 2.994JS 3,0064 2^93.0 3,009.4 3,0125 3,028.7 3,043.5 3,0293 3,029.9 3,039.6 3,0694 84 Residual (assets less liabilities)9 293.2 283.9 295.0 314.8 326.0 330.6 319.7 323.4 322.2 3321 321.8 312.4 Not seasonsi lly adjuster Assets 85 Bank credit 2,743.4 2,856.5 2858.6 2876.1 2,893.7 2,908.5 2,923.8 2,936.4 2,928.9 2,926.6 2936.8 2,937.7 86 Securities in bank credit 825.2r 890.7 8825 885.6 887.2 883.3 878.8 872.8 868.5 866.7 872.6 876.8 87 U.S. government securities 667.0 699.1 690.6 690.3 687.3 686.3 681.6 671.3 671.5 670.3 671.0 670.9 88 Other securities 158.2 191.6 191.9 195.3 199.8 197.0 197.2 201.5 197.0 196.4 201.6 205.9 89 Loans and leases in bank credit2 1,918.3 1,965.8 1,976.1 1,990.5 2,006.6 2,025.3 2,045.0 2,063.6 2060.3 2,059.9 2064.3 2060.9 90 Commercial and industrial 433.2 451.5 454.7 456.6 459.4 461.3 465.3 471.0 470.8 469.4 471.2 470.9 91 Real estate 881.9" 901.0 906.2 913.5 921.2 928.2 937.3 944.5 942.3 943.8 944.1 944.2 9? Revolving home equity 74.5 728 73.4 73.9 74.0 74.4 75.0 75.7 75.3 75.4 75.7 75.8 93 Other 807.4 828.2 8327 839.6 847.2 853.8 862.2 868.8 867.0 868.3 868.4 868.3 94 Consumer 384.6F 405.6 411.1 414.1 421.3 429.3 436.1 441.6 440.2 440.7 4424 441.3 95 Security3 56.0 521 49.1 48.8 45.7 46.0 43.7 46.0 43.9 44.5 47.9 46.2 96 Other 162.5 155.6 155.2 157.4 158.9 160.4 1627 160.4 163.2 161.5 158.6 158.4 97 Interbank loans4 128.3 125.7 128.0 131.0 129.9 1324 133.4 136.1 128.4 139.2 131.0 138.5 98 Cash assets5 191.9 181.3 187.6 186.1 1824 173.4 181.4 185.3 1826 201.8 180.3 174.4 99 Other assets6 175.6 170.2 171.6 166.0 171.1 172.1 170.3 171.0 172.9 174.3 168.8 167.4 100 Total assets7 3,1804r 3,276.7 33023 3320.6 33293 3351.6 3371.9 33555 3384.9 3360.2 3361-2 Liabilities 101 Deposits 2369.1 2369.3 2361.9 2366.7 2364.1 2360.2 2366.7 23722 2381.9 2399.7 2354.1 2347.1 10? Transaction 791.8 798.6 790.9 796.9 791.9 7828 789.5 791.0 8022 816.6 774.9 768.2 103 Nontransaction 1,577.3 1,570.7 1,571.0 1,569.8 13722 1377.4 1377.2 1381.1 1379.8 1383.0 1379.2 1378.9 104 Large time 2129 207.8 210.5 209.6 211.0 213.8 212.3 215.5 212.2 214.4 215.7 216.3 105 Other 1364.4 13629 1360.5 1360.2 1361.2 1,363.6 1364.9 1365.6 1367.5 1368.6 1363.4 13626 106 Borrowings 417.5 455.0 461.7 468.3 469.6 475.3 483.5 489.6 468.8 483.8 490.0 498.3 107 From banks in the U.S 117.7 130.3 134.3 1321 134.6 136.3 138.6 145.4 141.4 152.0 138.1 145.8 108 From nonbanks in the U.S 299.8 324.7 327.4 336.2 335.0 339.1 345.0 344.2 327.4 331.7 351.9 3525 109 Net due to related foreign -6.6 20.6 31.1 329 43.5 51.0 55.4 62.3 59.8 56.6 67.9 67.5 110 Other liabilities8 108.6 127.1 129.5 125.4 128.9 126.1 127.8 130.3 129.2 128.1 130.2 130.4 111 Total liabilities 2£8&5 2^72.0 2^8U 2,9933 3,006.1 3,0127 3,0334 3,054-3 3,039.8 3,068.1 3,042.1 3,0433 112 Residual (assets less liabilities)9 291.8 304.7 304.6 309.0 314.5 316.6 318.2 317.6 316.1 316.8 318.1 317.8 Footnotes appear on following page. 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A20 Domestic Nonfinancial Statistics • January 1995 NOTES TO TABLE 1.26 1. Covers the following types of institutions in the fifty states and the District of 5. Includes vault cash, cash items in process of collection, demand balances due from Columbia: domestically chartered commercial banks that submit a weekly report of depository institutions in the United States, balances due from Federal Reserve Banks, condition (large domestic); other domestically chartered commercial banks (small domes- and other cash assets. tic); branches and agencies of foreign banks; New York State investment companies, and 6. Excludes the due-from position with related foreign offices, which is included in Edge Act and agreement corporations (foreign-related institutions). Excludes interna- lines 25,53, 81, and 109. tional banking facilities. Data are Wednesday values, or pro rata averages of Wednesday 7. Excludes unearned income, reserves for losses on loans and leases, and reserves for values. Large domestic banks constitute a universe; data for small domestic banks and transfer risk. Loans are reported gross of these items. foreign-related institutions are estimates based on weekly samples and on quarter-end 8. Excludes the due-to position with related foreign offices, which is included in lines condition reports. Data are adjusted for breaks caused by reclassifications of assets and 25, 53, 81, and 109. liabilities. 9. This balancing item is not intended as a measure of equity capital for use in capital 2. Excludes federal funds sold to, reverse repurchase agreements with, and loans to adequacy analysis. commercial banks in the United States. NOTE. Data have been benchmarked to the June 1994 Call Report. Earlier tables were 3. Consists of reserve repurchase agreements with broker-dealers and loans to pur- benchmarked to the March 1994 Call Report. chase and carry securities. 4. Consists of federal funds sold to, reverse repurchase agreements with, and loans to commercial banks in the United States. 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 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 ASSETS 1 Cash and balances due from depository institutions 113,464 122,425 112,704 103,517 105,062 111,935 122,724 110,588 105,836 7 U.S. Treasury and government securities 313,539 311,900 313,457 306,558 302,159 300,939 300,425 301,546 301,946 3 Trading account 26,422 25,435 25,693 24,798 21,488 22,463 22,994 25,308 24,840 4 Investment account 287,117 286,465 287,764 281,759 280,671 278,475 277,431 276,238 277,107 5 Mortgage-backed securities' 93,048' 92,855' 92,511' 91,624 92,401 91,337 91,125 91,026 90,625 All others, by maturity 6 One year or less 49,523 49,737 50,205 44,930 44,609 43,278 42,351 4411,,996633 4422,,888866 7 One year through five years 77,176 76,546 77,538 78,052 77,163 76,959 77,217 77,062 77,591 8 More than five years 67,371' 67,327' 67,153 66,497 66,901 66,738 66,187 66,005 9 Other securities 103,775' 100,989' 101,678' 100,955' 103,361' 104,622 104,282 108,951 118,990 10 Trading account 1,835 1,641 1,574 1,523 1,639 1,437 1,685 1,622 1,637 11 Investment account 61,152 61,138 61,199 60,915 61,063 61,718 61,804 61,833 61,804 12 State and local government, by maturity 21,420 21,411 21,459 21,453 21,466 21,544 21,520 21,643 21,651 N One year or less 4,830 4,935 4,964 4,975 5,009 5,277 5,270 5,290 5,290 14 More than one year 16,590 16,476 16,494 16,478 16,456 16,267 16,251 16,354 16,361 IS Other bonds, corporate stocks, and securities 39,732 39,727 39,740 39,462 39,598 40,174 40,284 40,190 40,152 16 Other trading account assets 40,787' 38,2^ 38,906' 38,517' 40,658' 41,467 40,793 45,496 55,549 17 Federal funds sold2 101,872 91,795 95,072 101,662 99,586 90,122 97,636 93,058 99,002 18 To commercial banks in the United States 68,982 61,109' 63,115' 69,743' 70,129' 58,554 68,130 61,196 69,578 19 To nonbank brokers and dealers in securities 25,545 23,13C 24,003' 24,231' 21,275' 23,379 24,060 26,731 24,205 70 To others3 7,345 7,555 7,954 7,689 8,181 8,189 5,446 5,132 5,220 71 Other loans and leases, gross 1,100,977 1,097,425 1,099,987 1,105,672 1,106,914 1,113,864 1,115,804 1,116,922 1,119,232 7? Commercial and industrial 300,148 299,417 300,408 304,187 304,020' 306,938 306,179 307,240 306,917 23 Bankers acceptances and commercial paper 3,135 3,223 3,201 3,060 2,895 2,885 3,243 3,393 3,278 74 All other 297,013 296,193 297,207 301,127 301,125' 304,053 302,935 303,847 303,639 75 U.S. addressees 295,445 294,563 295,552 299,559 299,515' 302,280 301,137 302,028 301,759 76 Non-U.S. addressees 1,568 1,630 1,655 1,568 1,610 1,772 1,799 1,819 1,880 77 Real estate loans 438,305 439,252 440,706 440,297 440,219' 443,492 444,149 444,252 445,045 78 Revolving, home equity 45,194 45,194 45,272 45,381 45,505' 45,821 45,864 46,129 46,251 79 All other 393,111 394,058 395,434 394,916 394,713' 397,671 398,285 398,123 398,794 30 To individuals for personal expenditures 228,632 226,936 228,221 229,578 230,503 231,292 231,973 232,566 233,046 31 To depository and financial institutions 43,855 43,944 44,187 42,961 43,622' 42,944 45,478 45,406 45,477 37 Commercial banks in the United States 23,469 23,580 24,076 24,337 25,464' 25,140 26,196 26,347 26,498 33 Banks in foreign countries 3,737 3,393 3,060 3,082 2,875 2,458 3,005 2,542 2,744 34 Nonbank depository and other financial institutions 16,650 16,970 17,051 15,542 15,282 15,346 16,277 16,517 16,235 35 For purchasing and carrying securities 18,094 15,060 15,630 15,580 15,490' 15,365 15,226 16,027 16,933 36 To finance agricultural production 6,565 6,515 6,530 6,504 6,472 6,500 6,467 6,423 6,358 37 To states and political subdivisions 11,827 11,683 11,622 11,527 11,545' 11,488 11,549 11,571 11,572 38 To foreign governments and official institutions 980 1,157 1,032 1,170 993 940 1,050 915 920 39 All other loans4 23,667 24,426 22,468 24,655 24,662' 24,969 23,723 22,421 22,722 40 Lease-financing receivables 28,903 29,037 29,183 29,214 29,389' 29,938 30,011 30,101 30,242 41 LESS: Unearned income 1,658 1,648 1,650 1,663 1,654 1,633 1,635 1,624 1,624 47 Loan and lease reserve5 35,081 35,156 35,170 35,155 34,789 34,651 34,754 34,565 34,528 43 Other loans and leases, net 1,064,237 1,060,621 1,063,167 1,068,854 1,070,471 1,077,580 1,079,416 1,080,734 1,083,080 44 All other assets 148,447' 150,294' 150,971' 146,228' 146,310' 148,507 150,291 143,586 136,084 45 Trial assets6 l,845,334r 1,838,024' 1,837,049' l,827,774r 1,826,949' 1,833,705 1,854,774 1,838,462 1,844,939 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • January 1995 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1994 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 LIABILITIES 46 Deposits 1,144,734 1,157,512 1,149,748 1,120,501' 1,123,858' 1,145,964 1,157,278 1,126,673 1,125,397 47 Demand deposits 299,923 305,189 300,325 281,947 290,029 299,886 311,565 284,836 283,596 48 Individuals, partnerships, and corporations 253,126 256,491 254,331' 237,343 242,315' 253,417 260,473 242,298 237,908 49 Other holders 46,797 48,698 45,994' 44,604 47,714' 46,470 51,092 42,538 45,688 50 States and political subdivisions 8,585 8,218 8,149 8,775 8,489 8,229 8,180 8,148 8,237 51 U.S. government 2,394 2,025 3,936 2,806 1,857 2,313 1,858 1,891 1,957 52 Depository institutions in the United States 19,738 23,081 19,691' 17,743 19,636 21,038 25,065 18,665 18,608 53 Banks in foreign countries 5,792 5,559 5,155 5,543 5,669 5,144 5,819 5,021 5,293 54 Foreign governments and official institutions 647 654 618 648 672' 788 848 640 733 55 Certified and officers' checks 9,641 9,161 8,445 9,088 11,392 8,957 9,323 8,173 10,860 56 Transaction balances other than demand deposits4 125,112 128,815 126,934 123,109 121,227 126,520 124,360 122,944 121,733 57 Nontransaction balances 719,699 723,508 722,489 715,445' 712,602' 719,558 721,354 718,893 720,068 58 Individuals, partnerships, and corporations 697,373 701,456 700,766 694,638' 691,814' 699,043 700,730 698,457 699,485 59 Other holders 22,326 22,053 21,723 20,807' 20,788' 20,515 20,624 20,437 20,583 60 States and political subdivisions 17,509 17,641 17,359 16,841' 16,762' 16,749 16,836 16,853 16,933 61 U.S. government 2,440 1,986 2,000 2,001 1,999 1,678 1,776 1,724 1,711 62 Depository institutions in the United States 1,952 2,002 1,919 1,514' 1,579 1,639 1,562 1,414 1,490 63 Foreign governments, official institutions, and banks .. 425 424 445 451 448' 449 449 446 448 64 Liabilities for borrowed money5 364,389 342,898 351,119 371,784' 366,975' 346,165 358,228 362,114 361,451 65 Borrowings from Federal Reserve Banks 0 0 0 275 0 0 0 0 54 66 Treasury tax and loan notes 17,265 2,007 4,400 34,348 22,649' 2,831 3,565 12,374 12,579 67 Other liabilities for borrowed money6 347,124 340,891 346,719 337,161' 344,325' 343,333 354,663 349,739 348,818 68 Other liabilities (including subordinated notes and debentures)... 164,896 165,812 163,297 163,488 165,105 169,423 166,263 175,940 183,788 69 Total UabiUties 1,674,019 1,666,222 1,664,164 L,655,773R 1,655,938 1,661,551 1,681,770 1,664,726 1,670,636 70 Residual (total assets less total liabilities)7 171,315R 171,802' 172,885' 172,002' 171,011' 172,154 173,004 173,736 174,302 MEMO 71 Total loans and leases, gross, adjusted, plus securities8 1,527,712' 1,517,419' 1,523,003' 1,520,767' 1,516,427' 1,525,853 1,523,820 1,532,935 1,543,096 72 Time deposits in amounts of $100,000 or more 96,540' 96,937' 97,080' 93,725' 92,829 94,253 95,856 96,910 97,324 73 Loans sold outright to affiliates9 672 671 671 674 663 678 682 681 681 74 Commercial and industrial 326 326 329 329 329 328 339 338 322 75 Other 345 345 342 345 334 350 343 343 359 76 Foreign branch credit extended to U.S. residents10 22,961 23,332 23,167 23,259 22,688 22,756 22,857 22,369 22,734 77 Net owed to related institutions abroad 51,247' 49,269' 45,184 49,629 50,219 52,834 49,933 60,838 61,382 1. Includes certificates of participation, issued or guaranteed by agencies of the U.S. 8. Excludes loans to and federal funds transactions with commercial banks in the government, in pools of residential mortgages. United States. 2. Includes securities purchased under agreements to resell. 9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank affiliates 3. Includes allocated transfer risk reserve. of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank 4. Includes negotiable order of withdrawal (NOWs) and automatic transfer service subsidiaries of the holding company. (ATS) accounts, and telephone and preauthorized transfers of savings deposits. 10. Credit extended by foreign branches of domestically chartered weekly reporting 5. Includes borrowings only from other than directly related institutions. banks to nonbank U.S. residents. Consists mainly of commercial and industrial loans, but 6. Includes federal funds purchased and securities sold under agreements to repur- includes an unknown amount of credit extended to other than nonfinancial businesses. chase. 7. This balancing item is not intended as a measure of equity capital for use in capital-adequacy analysis. 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 Liabilities Millions of dollars, Wednesday figures 1994 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 ASSETS 1 Cash and balances due from depository institutions 15,891 14,441 13,973 15,022 15,437 15,309 1155,,881199 1155,,662255 1155,,886611 7 U.S. Treasury and government agency 41,299 41,273 41,078 41,342 40,438 4400,,331199 4400,,337777 4400,,772222 38,697 3 11,519 11,501 11,784 11,579 12,251R 12,476 12,377 12,449 12,518 4 30,426 24,851 28,006 29,834 30,893 28,902 29,978 27,165 26,615 5 To commercial banks in (he United States 10,080 5,330 7,390 8,224 9,387 9,692 10,444 7,282 7,456 6 To others2 20,345 19,520 20,616 21,610 21,506 19,210 19,534 19,882 19,160 7 Other loans and leases, gross 159,480 158,820 159,349 160,645 159,890 159,808 160,009 161,669 161,959 8 Commercial and industrial 101,339 101,246 101,374 102,136 101,102 102,458 102,326 103,635 103,523 9 Bankers acceptances and commercial paper . 3,365 3,278 3,270 3,334 3,219 3,167 3,285 3,097 2,957 10 All other 97,974 97,967 98,103 98,802 97,883 99,292 99,041 100,538 100,566 11 U.S. addressees 93,811 93,810 93,858 94,594 93,721 95,128 94,851 96,469 96,594 1? Non-U.S. addressees 4,163 4,158 4,246 4,208 4,163 4,164 4,189 4,069 3,972 13 Loans secured by real estate 26,948 26,967 26,903 26,761 26,677 26,450 26,329 26,222 26,212 14 Loans to depository and financial 23,356 23,529 23,715 24,104 24,915 24,128 2244,,445566 2244,,770077 2244,,889977 1") Commercial banks in the United States 4,602 4,625 4,825 4,684 4,794 4,775 4,804 4,940 5,300 16 Banks in foreign countries 1,919 1,956 1,874 2,012 1,847 2,087 2,014 2,120 2,103 17 16,835 16,947 17,016 17,408 18,274 17,266 17,637 17,647 17,495 18 For purchasing and carrying securities 3,793 3,043 3,393 3,484 3,290 2,932 2,990 3,351 3,361 19 To foreign governments and official 349 345 327 329 353 334466 335577 335588 338811 All other 3,696 3,690 3,638 3,831 3,552 3,493 3,552 3,396 3,586 21 Other assets (claims on nonrelated parties) 35,463 35,267 35,194 33,180 33,186R 34,465 35,299 35,179 35,573 22 Total assets3 320,245 313,129 314,743 318,578 319,085 315,396 320,204 319,613 317,870 LIABILITIES 73 Deposits or credit balances owed to other than directly related institutions 93,292 93,843 94,454 96,499 98,065 96,518 9955,,887766 9966,,889955 9977,,888855 74 Demand deposits4 4,639 4,362 4,454 4,875 5,415 4,333 4,545 4,107 4,261 25 Individuals, paitnerships, and corporations .... 3,794 3,721 3,719 3,776 4,047 3,652 3,653 3,382 3,394 Other 845 641 734 1,099 1,368 682 892 725 867 77 Nontransaction accounts 88,653 89,481 90,001 91,624 92,649 92,184 91,332 92,789 93,624 78 Individuals, paitnerships, and corporations .... 59,894 61,102 61,501 62,170 63,522 62,325 61,414 62,529 62,861 79 Other 28,759 28,379 28,499 29,453 29,127 29,859 29,917 30,260 30,763 30 Borrowings from other than directly 81,837 78,031 74,679 78,988 74,714 71,153 7722,,776688 7733,,110088 7722,,337766 11 Federal funds purchased5 41,954 41,832 39,504 44,260 39,023 37,213 38,470 38,598 35,937 37 From commercial banks in the United States . . 10,281 7,980 7,047 9,698 8,204 5,334 6,318 6,170 6,444 33 31,673 33,852 32,457 34,562 30,819 31,879 32,152 32,427 29,493 34 Other liabilities for borrowed money 39,882 36,199 35,175 34,728 35,691 33,940 34,298 34,510 36,440 35 To commercial banks in the United States 6,478 6,861 6,945 7,048R 7,137 6,478 6,434 7,061 6,951 36 33,404 29,338 28,230 27,680R 28,555 27,462 27,864 27,449 29,489 37 Other liabilities to nonrelated parties 33,317 32,547 32,560 30,805 31,336 31,491 32,937 32,034 32,363 38 Total liabilities6 320,245 313,129 314,743 318,578 319,085 315,396 320,204 319,613 317,870 MEMO 39 Total loans (gross) and securities, adjusted 228,042 226,490 228,002 230,493 229,29 LR 227,038 227,492 229,782 227,034 40 Net owed ^ related institutions abroad 85,632 81,732 87,690 85,310 87,980 92,119 92,278 90,771 88,599 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. For U.S. branches and agencies of foreign banks having a net "due to" position, 3. For U.S. branches and agencies of foreign banks having a net "due from" position, includes net owed to related institutions abroad. includes net due from related institutions abroad. 7. Excludes loans to and federal funds transactions with commercial banks in the 4. Includes other transaction deposits. United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • January 1995 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period Year ending December 1994 IItteemm 1989 1990 1991 1992 1993 Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 525,831 562,656 528,832 545,619 555,075 553,497 559,569 563,067 572,539 564,206 574,054 Financial companies' Dealer-placed paper2 2 Total 183,622 214,706 212,999 226,456 218,947 207,180 213,623 221144,,331133 222222,,778800 221144,,776699 221144,,334499 3 Bank-related (not seasonally adjusted) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper4 4 Total 210,930 200,036 182,463 171,605 118800,,338899 199,803 119977,,881122 119999,,116688 119999,,117755 119988,,559988 220033,,115566 S Bank-related (not seasonally adjusted)3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies3 131,279 147,914 133,370 147,558 155,739 146,514 148,134 149,586 150,584 150,839 156,549 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 62,972 54,771 43,770 38,194 32,348 31,775 29,867 30,659 30,390 30,448 31,164 By holder 8 Accepting banks 9,433 9,017 11,017 10,555 12,421 11,643 11,533 12,334 11,608 11,543 11,299 9 Own bills 8,510 7,930 9,347 9,097 10,707 10,888 10,601 11,273 10,838 10,824 10,475 10 Bills bought from other banks 924 1,087 1,670 1,458 1,714 755 932 1,061 770 719 824 Federal Reserve Banks7 11 Foreign correspondents 1,066 918 1,739 1,276 725 625 465 453 386 325 388 12 Others 52,473 44,836 31,014 26,364 19,202 19,507 17,869 17,872 18,396 18,580 19,477 By basis 13 Imports into United States 15,651 13,095 12,843 12,209 10,217 10,834 10,396 10,625 10,956 10,486 10,985 14 Exports from United States 13,683 12,703 10,351 8,096 7,293 6,723 6,367 6,576 6,399 6,458 6,575 15 All other 33,638 28,973 20,577 17,890 14,838 14,217 13,104 13,458 13,035 13,505 13,604 1. Institutions engaged primarily in commercial, savings, and mortgage banking; cations, construction, manufacturing, mining, wholesale and retail trade, transportation, sales, personal, and mortgage financing; factoring, finance leasing, and other business and services. lending; insurance underwriting; and other investment activities. 6. Data on bankers dollar acceptances are gathered from approximately 100 institu- 2. Includes all financial-company paper sold by dealers in the open market. tions. The reporting group is revised every January. 3. Series were discontinued in January 1989. 7. In 1977 the Federal Reserve discontinued operations in bankers dollar acceptances 4. As reported by financial companies that place their paper directly with investors. for its own account. 5. Includes public utilities and firms engaged primarily in such activities as communi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Date of change Rate Period Average Period Average Period Average rate rate rate 1991—-Jan. 1 10.00 1991 8.46 1992—Jan 6.50 July 6.00 2 9.50 1992 6.25 Feb 6.50 Aug 6.00 Feb. 4 9.00 1993 6.00 Mar. 6.50 Sept 6.00 May 1 8.50 Apr. 6.50 Oct 6.00 Sept. 13 8.00 1991—Jan 9.52 May 6.50 Nov 6.00 Nov. 6 7.50 Feb 9.05 June 6.50 Dec 6.00 Dec. 23 6.50 Mar 9.00 July 6.02 Apr. 9.00 Aug 6.00 1994—Jan 6.00 1992—July 2 6.00 May 8.50 Sept 6.00 Feb 6.00 June 8.50 Oct 6.00 Mar. 6.06 1994—Mar. 24 6.25 July 8.50 Nov 6.00 Apr. 6.45 Apr. 19 6.75 Aug 8.50 Dec 6.00 May 6.99 May 17 7.25 Sept 8.20 June 7.25 Aug. 16 7.75 Oct 8.00 1993—Jar 6.00 July 7.25 Nov. 15 8.50 Nov. 7.58 Feb 6.00 Aug 7.51 Dec 7.21 Mar. 6.00 Sept 7.75 Apr. 6.00 Oct 7.75 6.00 Nov 88..1155 6.00 1. The prime rate is one of several base rates that banks use to price short-term recent Call Report. Data in this table also appear in the Board's H.1S (S19) weekly and business loans. The table shows the date on which a new rate came to be the predominant G.13 (41S) monthly statistica lreleases. For ordering address, see inside front cover, one quoted by a majority of the twenty-five largest banks by asset size, based on the most Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • January 1995 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 1994 1994, week ending IItteemm 11999911 11999922 11999933 July Aug. Sept. Oct. Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 5.69 3.52 3.02 4.26 4.47 4.73 4.76 4.66 5.07 4.62 4.72 4.72 2 Discount window borrowing2,4 5.45 3.25 3.00 3.50 3.76 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Commercial paper3,5,6 3 1-month 5.89 3.71 3.17 4.49 4.65 4.90 5.02 5.01 5.08 5.08 4.96 4.98 4 3-month 5.87 3.75 3.22 4.75 4.84 5.02 5.51 5.17 5.49 5.51 5.46 5.55 5 6-month 5.85 3.80 3.30 5.13 5.19 5.32 5.70 5.50 5.67 5.70 5.65 5.77 Finance paper, directly placed3,5,7 6 1-month 5.73 3.62 3.12 4.40 4.56 4.79 4.91 4.88 4.99 4.96 4.84 4.88 7 3-month 5.71 3.65 3.16 4.64 4.73 4.89 5.36 5.00 5.21 5.41 5.37 5.45 8 6-month 5.60 3.63 3.15 4.67 4.79 4.99 5.30 5.13 5.27 5.31 5.28 5.33 Bankers acceptances3,5,8 9 3-month 5.70 3.62 3.13 4.65 4.74 4.95 5.41 5.13 5.42 5.40 5.38 5.45 10 6-month 5.67 3.67 3.21 5.01 5.03 5.24 5.59 5.44 5.60 5.55 5.56 5.64 Certificates of deposit, secondary market3,9 11 1-month 5.82 3.64 3.11 4.45 4.60 4.85 4.98 4.97 5.05 5.03 4.91 4.94 12 3-month 5.83 3.68 3.17 4.73 4.81 5.03 5.51 5.21 5.51 5.49 5.47 5.56 13 6-month 5.91 3.76 3.28 5.15 5.17 5.40 5.79 5.60 5.77 5.73 5.74 5.87 14 Eurodollar deposits, 3-month3,10 5.86 3.70 3.18 4.74 4.80 5.01 5.52 5.26 5.54 5.56 5.45 5.55 US. Treasury bills Secondary market3,5 15 3-month 5.38 3.43 3.00 4.33 4.48 4.62 4.95 4.66 4.90 4.91 4.94 5.01 16 6-month 5.44 3.54 3.12 4.75 4.88 5.04 5.39 5.21 5.36 5.30 5.38 5.48 17 1-year 5.52 3.71 3.29 5.17 5.25 5.43 5.75 5.58 5.71 5.67 5.76 5.86 Auction average3,5,11 18 3-month 5.42 3.45 3.02 4.39 4.50 4.64 4.96 4.79 4.92 4.92 4.92 5.07 19 6-month 5.49 3.57 3.14 4.81 4.91 5.02 5.39 5.22 5.38 5.34 5.34 5.51 20 1-year 5.54 3.75 3.33 5.20 5.36 5.38 5.72 n.a. n.a. n.a. 5.72 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 5.86 3.89 3.43 5.48 5.56 5.76 6.11 5.92 6.07 6.04 6.10 6.22 22 2-year 6.49 4.77 4.05 6.13 6.18 6.39 6.73 6.56 6.69 6.63 6.69 6.86 23 3-year 6.82 5.30 4.44 6.48 6.50 6.69 7.04 6.87 7.02 6.95 7.01 7.16 24 5-year 7.37 6.19 5.14 6.91 6.88 7.08 7.40 7.25 7.38 7.30 7.37 7.53 25 7-year 7.68 6.63 5.54 7.12 7.06 7.28 7.58 7.44 7.57 7.48 7.54 7.70 26 10-year 7.86 7.01 5.87 7.30 7.24 7.46 7.74 7.60 7.72 7.65 7.71 7.86 27 20-year n.a. n.a. 6.29 7.67 7.62 7.87 8.08 7.99 8.08 8.01 8.06 8.16 28 30-year 8.14 7.67 6.59 7.58 7.49 7.71 7.94 7.83 7.91 7.86 7.92 8.03 Composite 29 More than 10 years (long-term) 8.16 7.52 6.45 7.61 7.55 7.81 8.02 7.92 8.02 7.95 8.00 8.11 STATE AND LOCAL NOTES AND BONDS Moody's series13 30 6.56 6.09 5.38 5.88 5.89 5.87 6.05 5.96 5.97 6.07 6.00 6.15 31 BBaaaa 6.99 6.48 5.82 6.26 6.23 6.23 6.37 6.31 6.32 6.38 6.31 6.46 32 BBoonndd BBuuyyeerr sseerriieess1144 6.92 6.44 5.60 6.23 6.21 6.28 6.52 6.43 6.50 6.44 6.49 6.64 CORPORATE BONDS 33 Seasoned issues, all industries'5 9.23 8.55 7.54 8.42 8.36 8.60 8.83 8.73 8.82 8.76 8.80 8.91 Rating group 34 8.77 8.14 7.22 8.11 8.07 8.34 8.57 8.48 8.57 8.50 8.54 8.65 35 Aa 9.05 8.46 7.40 8.31 8.25 8.49 8.71 8.61 8.70 8.65 8.69 8.80 36 A 9.30 8.62 7.58 8.44 8.38 8.61 8.82 8.73 8.81 8.76 8.80 8.91 37 Baa 9.80 8.98 7.93 8.80 8.74 8.98 9.20 9.10 9.20 9.14 9.18 9.29 38 A-rated, recently offered utility bonds 9.32 8.52 7.46 8.45 8.36 8.62 8.80 8.71 8.80 8.73 8.87 8.85 MEMO Dividend-price ratio17 39 Preferred stocks18 8.17 7.46 6.89 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 40 Common stocks 3.24 2.99 2.78 2.87 2.78 2.80 2.82 2.81 2.87 2.80 2.78 2.84 1. The daily effective federal funds rate is a weighted average of rates on trades 12. Yields on actively traded issues adjusted to constant maturities. Source: U.S. through New York brokers. Department of the Treasury. 2. Weekly figures are averages of seven calendar days ending on Wednesday of the 13. General obligations based on Thursday figures; Moody's Investors Service. current week; monthly figures include each calendar day in the month. 14. State and local government general obligation bonds maturing in twenty years are 3. Annualized using a 360-day year for bank interest. used in compiling this index. The twenty-bond index has a rating roughly equivalent to 4. Rate for the Federal Reserve Bank of New York. Moodys' A1 rating. Based on Thursday figures. 5. Quoted on a discount basis. 15. Daily figures from Moody's Investors Service. Based on yields to maturity on 6. An average of offering rates on commercial paper placed by several leading dealers selected long-term bonds. for firms whose bond rating is AA or the equivalent. 16. Compilation of the Federal Reserve. This series is an estimate of the yield on 7. An average of offering rates on paper directly placed by finance companies. recently offered, A-rated utility bonds with a thirty-year maturity and five years of call 8. Representative closing yields for acceptances of the highest-rated money center protection. Weekly data are based on Friday quotations. banks. 17. Standard & Poor's corporate series. Preferred stock ratio is based on a sample of 9. An average of dealer offering rates on nationally traded certificates of deposit. ten issues: four public utilities, four industrials, one financial, and one transportation. 10. Bid rates for Eurodollar deposits at 11:00 a.m. London time. Data are for indication Common stock ratio is based on the 500 stocks in the price index. purposes only. 18. Data for the preferred stock yield was discontinued as of June 29, 1994. 11. Auction date for daily data; weekly and monthly averages computed on an NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and issue-date basis. G.13 (415) monthly statistical releases. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A27 1.36 STOCK MARKET Selected Statistics 1994 IInnddiiccaattoorr 11999911 11999922 11999933 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 206.35 229.00 249.71 261.97 257.32 247.97 249.56 251.21 249.29 256.08 257.61 255.22 2 Industrial 258.16 284.26 300.10 322.41 318.08 304.48 307.58 308.66 307.34 316.56 322.19 321.53 3 Transportation 173.97 201.02 242.68 276.67 265.68 250.43 244.75 246.64 244.21 244.67 239.10 230.71 4 Utility 92.64 99.48 114.55 116.22 107.72 105.04 102.89 103.27 102.73 105.61 102.30 101.67 5 Finance 150.84 179.29 216.55 217.12 211.02 208.12 211.30 215.89 210.91 214.77 211.90 203.33 6 Standard & Poor's Corporation (1941-43 = 10)1 376.20 415.75 451.63 471.58 463.81 447.23 450.90 454.83 451.40 464.24 466.96 463.81 7 American Stock Exchange (Aug. 31, 1973 = 50)2 360.32 391.28 438.77 476.25 465.72 437.01 437.54 436.08 430.10 444.89 456.31 456.25 Volume of trading (thousands of shares) 8 New York Stock Exchange 179,411 202,558 263,374 307,269 311,096 301,242 269,812 265,341 250,382 277,877 292,356 301,327 9 American Stock Exchange 12,486 14,171 18,188 19,630 19,481 15,805 15,727 18,400 14,378 15,874 18,785 20,731 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers' 36,660 43,990 60,310 62,020 61,960 60,700 59,870 60,800 61,930 63,070 61,630 62,150 Free credit balances at brokers4 11 Margin accounts5 8,290 8,970 12,360 12,890 13,185 13,175 12,715 12,560 12,620 12,090 12,415 12,875 12 Cash accounts 19,255 22,510 27,715 25,665 26,190 24,800 23,265 28,585 25,790 24,400 25,230 24,180 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 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. In July 1976 a financial group, composed of banks and insurance companies, was credit is collateralized by securities. Margin requirements on securities other than options added to the group of stocks on which the index is based. The index is now based on 400 are the difference between the market value (100 percent) and the maximum loan value of industrial stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 1934; (formerly 60), and 40 financial. Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; and 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting Regulation X, effective Nov. 1, 1971. previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T 3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has the initial margin required for writing options on securities, setting it at 30 percent of the included credit extended against stocks, convertible bonds, stocks acquired through the current market value of the stock underlying the option. On Sept. 30, 1985, the Board exercise of subscription rights, corporate bonds, and government securities. Separate changed the required initial margin, allowing it to be the same as the option maintenance reporting of data for margin stocks, convertible bonds, and subscription issues was margin required by the appropriate exchange or self-regulatory organization; such maintediscontinued in April 1984. nance margin rules must be approved by the Securities and Exchange Commission. 4. Free credit balances are amounts in accounts with no unfulfilled commitments to Effective Jan. 31, 1986, the SEC approved new maintenance margin rules, permitting brokers and are subject to withdrawal by customers on demand. margins to be the price of the option plus 15 percent of the market value of the stock 5. Series initiated in June 1984. underlying the option. 6. Margin requirements, stated in regulations adopted by the Board of Governors Effective June 8,1988, margins were set to be the price of the option plus 20 percent of pursuant to the Securities Exchange Act of 1934, limit the amount of credit that can be the market value of the stock underlying the option (or 15 percent in the case of used to purchase and carry "margin securities" (as defined in the regulations) when such stock-index options). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • January 1995 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1994 11999922 11999933 11999944 May June July Aug. Sept. Oct. US. budget1 1 Receipts, total 1,090,453 1,153,226 1,257,187 83,546 138,124 84,827 97,338 135,895 89,024 2 On-budget 788,027 841,292 922,161 55,366 106,014 60,145 70,949 105,212 65,385 3 Off-budget 302,426 311,934 335,026 28,179 32,110 24,681 26,389 30,683 23,639 4 Outlays, total 1,380,856 1,408,532 1,460,557 115,602 123,275 118,025 121,608 131,903 121,472 5 On-budget 1,128,518 1,141,945 1,181,185 89,731 108,166 93,164 95,279 103,189 95,298 6 Off-budget 252,339 266,587 279,372 25,871 15,108 24,861 26,329 28,714 26,174 7 Surplus or deficit (-), total -290,403 -255,306 -203,370 -32,057 14,850 -33,198 -24,270 3,993 -32,448 8 On-budget -340,490 -300,653 -259,024 -34,365 -2,152 -33,018 -24,330 2,024 -29,914 9 Off-budget 50,087 45,347 55,654 2,308 17,002 -180 60 1,969 -2,535 Source of financing (total) 10 Borrowing from the public 310,918 248,594 184,998 27,649 2,098 -3,245 52,350 -11,996 32,457 11 Operating cash (decrease, or increase (—)) -17,305 6,283 16,564 21,537 -23,797 30,705 -9,802 -5,855 -480 12 Other2 -3,210 429 1,808 -17,132 7,049 5,737 -18,374 13,858 471 MEMO 13 Treasury operating balance (level, end of period) 58,789 52,506 35,942 27,194 50,991 20,285 30,087 35,942 36,422 14 Federal Reserve Banks 24,586 17,289 6,848 5,675 9,356 3,683 5,994 6,848 5,164 15 Tax and loan accounts 34,203 35,217 29,094 21,519 41,635 16,603 24,093 29,094 31,258 1. Since 1990, off-budget items have been the social security trust funds (federal gold; net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF old-age survivors insurance and federal disability insurance) and the U.S. Postal Service. loan-valuation adjustment; and profit on sale of gold. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of Receipts and International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets; Outlays of the U.S. Government; and U.S. Office of Management and Budget, Budget of accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous the U.S. Government. liability (including checks outstanding) and asset accounts; seigniorage; increment on 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 SSSooouuurrrccceee ooorrr tttyyypppeee 1992 1993 1994 1994 11999933 11999944 H2 HI H2r HI Aug. Sept. Oct. RECEIPTS 1 All sources 1,153,226 1,257,187r 540,484 593,212 582,054 651,944 97,338 135,895 89,024 2 Individual income taxes, net 509,680 542,738 246,938 255,556 262,073 274,736 43,170 57,964 43,239 3 Withheld 430,211 459,699 215,584 209,517 228,423 225,387 40,459 35,201 40,480 4 Presidential Election Campaign Fund 28 70 10 25 2 63 1 1 0 5 Nonwithheld 154,989 160,047 39,288 113,510 41,768 117,928 4,016 24,811 3,919 6 Refunds 75,546 77,077 7,942 67,468 8,114 68,642 1,305 2,050 1,160 Corporation income taxes 7 Gross receipts 131,548 154,205 58,022 69,044 68,266 80,536 4,079 28,921 55,,551133 8 Refunds 14,027 13,820 7,219 7,198 6,514 6,933 971 1,656 2,043 9 Social insurance taxes and contributions, net... 428,300 461,475 192,599 227,177 206,176 248,301 39,292 40,371 32,687 10 Employment taxes and contributions 396,939 428,810 180,758 208,776 192,749 228,714 34,020 39,614 31,263 11 Self-employment taxes and contributions . 20,604 24,433 3,988 16,270 4,335 20,762 0 3,578 464 12 Unemployment insurance 26,556 28,004 9,397 16,074 11,010 17,301 4,880 346 1,073 13 Other net receipts 4,805 4,661 2,445 2,326 2,417 2,284 391 411 351 14 Excise taxes 48,057 55,225 23,456 23,398 25,994 26,444 5,989 5,518 4,275 15 Customs deposits 18,802 20,099 9,497 8,860 10,215 9,500 2,039 1,799 1,848 16 Estate and gift taxes 12,577 15,225 5,733 6,494 6,617 8,197 1,239 1,254 1,206 17 Miscellaneous receipts 18,273 22,041 11,458 9,879 9,227 11,164 2,502 1,725 2,300 OUTLAYS 18 All types 1,408^32' 1,460,557 723,527 673,915 727,701 710,330 121,608 131,903 121,472 19 National defense 291,086 281,451 155,231 140,535 146,660 133,739 23,711 27,657 18,801 20 International affairs 16,826 17,249 9,916 6,565 10,186 5,800 990 2,323 4,339 21 General science, space, and technology 17,030 17,602 8,521 7,996 8,880 8,502 1,654 1,772 1,115 22 Energy 4,319 5,398 3,109 2,462 1,663 2,036 390 987 525 23 Natural resources and environment 20,239 20,902 11,467 8,592 11,227 9,179 1,745 2,156 3,418 24 Agriculture 20,443 15,131 8,852 11,872 7,516 7,451 382 236 2,048 25 Commerce and housing credit -22,725 -4,851 -7,697 -14,537 -1,490 -5,114 -3,026 2,623 858 26 Transportation 35,004 36,835 18,425 16,076 19,597 16,772 3,719 3,583 3,434 27 Community and regional development 9,051 11,877 4,464 4,929 4,288 5,592 1,138 1,469 1,171 28 Education, training, employment, and social services 50,012 44,730 21,241 24,080 2266,,776600"" 18,976 44,,334422 5,088 33,,770055 29 Health 99,415 106,495 47,232 49,882 52,958 53,121 9,426 9,106 8,631 30 Social security and Medicare 435,137 464,314 232.109 195,933 223,735 232,777 39,262 39,944 37,801 31 Income security 207,257 213,972 98,382 107,870 102,375' 109,103 16,848 17,101 15,275 32 Veterans benefits and services 35,720 37,637 18,561 16,385 19,852 16,686 3,130 4,257 1,677 33 Administration of justice 14,955 15,283 7,238 7,482 7,400 7,718 1,204 1,362 1,340 34 General government 13,009 11,348 8,223 5,205 6,531 5,076 1,325 1,292 1,261 35 Net interest6 198,811 202,957 98,692 99,635 99,914 99,844 18,322 16,944 18,669 36 Undistributed offsetting receipts -37,386 -37,772 -20,628 -17,035 -20,344 -17,308 -3,051 -5,996 -2,596 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 total for 6. Includes interest received by trust funds. outlays does not correspond to calendar year data because revisions from the Budget have 7. Rents and royalties for the outer continental shelf, U.S. government contributions for not been fully distributed across months. employee retirement, and certain asset sales. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of Receipts and 3. Old-age, disability, and hospital insurance. Outlays of the US. Government-, and U.S. Office of Management and Budget, Budget of 4. Federal employee retirement contributions and civil service retirement and the US. Government, Fiscal Year 1995. disability fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • January 1995 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1992 1993 1994 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 4,083 4,196 4,250 4,373 4,436 4,562 4,602 4,673 4,692 2 Public debt securities 4,065 4,177 4,231 4,352 4,412 4,536 4,575 4,645 n.a. 3 Held by public 3,048 3,129 3,188 3,252 3,295 3,382 3,434 3,442 n.a. 4 Held by agencies 1,016 1,048 1,043 1,100 1,117 1,154 1,141 1,202 n.a. 5 Agency securities 18 19 20 21 25 27 26 27 n.a. 6 Held by public 18 19 20 21 25 27 26 27 n.a. 7 Held by agencies 0 0 0 0 0 0 0 0 n.a. 8 Debt subject to statutory limit 3,973 4,086 4,140 4,256 4,316 4,446 4,491 4,559 4,605 9 Public debt securities 3,972 4,085 4,139 4,256 4,315 4,445 4,491 4,559 4,605 10 Other debt1 0 0 0 0 0 0 0 0 n.a. MEMO 11 Statutory debt limit 4,145 4,145 4,145 4,370 4,900 4,900 4,900 4,900 4,900 1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified SOURCES. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District of United States and Treasury Bulletin. 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 Q4 Q1 Q2 Q3 1 Total gross public debt 3364.8 3,801.7 4,177.0 4,535.7 4,535.7 4,575.9 4,645.8 4,689.5 By type 2 Interest-bearing 3,362.0 3,798.9 4,173.9 4,532.3 4,532.3 4,572.6 4,642.5 3,091.6 3 Marketable 2,195.8 2,471.6 2,754.1 2,989.5 2,989.5 3,042.9 3,051.0 697.3 4 Bills 527.4 590.4 657.7 714.6 714.6 721.2 698.5 1,867.5 5 Notes 1,265.2 1,430.8 1,608.9 1,764.0 1,764.0 1,802.5 1,835.7 511.8 6 Bonds 388.2 435.5 472.5 495.9 495.9 504.2 501.8 1,597.9 7 Nonmarketable1 1,166.2 1,327.2 1,419.8 1,542.9 1,542.9 1,529.7 1,591.5 137.4 8 State and local government series 160.8 159.7 153.5 149.5 149.5 145.5 143.4 42.0 9 Foreign issues2 43.5 41.9 37.4 43.5 43.5 42.7 42.2 42.0 10 Government 43.5 41.9 37.4 43.5 43.5 42.7 42.2 .0 11 Public .0 .0 .0 .0 .0 .0 .0 176.4 12 Savings bonds and notes 124.1 135.9 155.0 169.4 169.4 172.6 174.9 1,211.7 13 Government account series3 813.8 959.2 1,043.5 1,150.0 1,150.0 1,138.4 1,200.6 3.2 14 Non-interest-bearing 2.8 2.8 3.1 3.4 3.4 3.3 3.2 By holder4 15 U.S. Treasury and other federal agencies and trust funds 828.3 968.7 1,047.8 1,153.5 1,153.5 1,141.7 1,203.0 16 Federal Reserve Banks 259.8 281.8 302.5 334.2 334.2 342.6 357.7 17 Private investors 2,288.3 2,563.2 2,839.9 3,047.7 3,047.7 3,094.6 3,088.2 18 Commercial banks 171.5 233.4 294.0 316.0 316.0 344.3 350.0 19 Money market funds 45.4 80.0 79.4 80.5 80.5 70.5 59.5 20 Insurance companies 142.0 168.7 197.5 216.0 216.0 218.1 222.0 21 Other companies 108.9 150.8 192.5 213.0 213.0 216.3 226.3 n a. 22 State and local treasuries 490.4 520.3 534.8 564.0 564.0 582.8 585.0 Individuals 23 Savings bonds 126.2 138.1 157.3 171.9 171.9 175.0 177.1 24 Other securities 107.6 125.8 131.9 137.9 137.9 140.1 144,0 25 Foreign and international5 458.4 491.8 549.7 623.3 623.3 633.5 633.2 26 Other miscellaneous investors6 637.7 651.3 702.4 725.0 725.0 714.0 693.1 1. Includes (not shown separately) securities issued to the Rural Electrification Admin- 5. Consists of investments of foreign balances and international accounts in the United istration, depository bonds, retirement plan bonds, and individual retirement bonds. States. 2. Nonmarketable series denominated in dollars, and series denominated in foreign 6. Includes savings and loan associations, nonprofit institutions, credit unions, mutual currency held by foreigners. savings banks, corporate pension trust funds, dealers and brokers, certain U.S. Treasury 3. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. deposit accounts, and federally sponsored agencies. 4. Data for Federal Reserve Banks and U.S. government agencies and trust funds are SOURCES. U.S. Treasury Department, data by type of security. Monthly Statement of the actual holdings; data for other groups are Treasury estimates. Public Debt of the United States; data by holder, Treasury Bulletin. 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 1994 1994, week ending Item July Aug. Sept. Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 48,137 52,444 52,276 46,252 47,300 49,307 54,340 57,809 50,656 52,378 58,789 52,545 Coupon securities, by maturity 2 Five years or less 79,197 84,066 80,107 58,878 61,353 72,323 82,436 96,879 89,320 82,896 77,633 97,394 3 More than five years 38,764 50,836 40,213 38,257 34,654 42,631 41,298 41,604 39,096 39,218 41,079 46,033 4 Federal agency 15,535 15,998 17,364 18,255 16,130 15,931 16,689 19,413 19,984 17,507 16,369 16,989 5 Mortgage-backed 37,607 32,443 34,591 22,166 28,909 46,091 34,792 25,603 39,170 53,701 37,674 30,635 By type of counterparty With interdealer broker 6 U.S. Treasury 94,926 105,411 99,496 79,274 81,260 95,778 102,620 113,259 103,050 99,394 104,095 113,645 7 Federal agency 731 685 724 881 494 844 706 753 861 485 517 718 8 Mortgage-backed 13,306 12,052 12,999 9,351 10,935 15,707 12,541 11,027 16,433 18,650 13,372 11,912 With other 9 U.S. Treasury 71,173 81,935 73,099 64,113 62,047 68,483 75,454 83,033 76,022 75,097 73,406 82,326 10 Federal agency 14,805 15,313 16,640 17,374 15,636 15,087 15,983 18,660 19,123 17,023 15,853 16,271 11 Mortgage-backed 24,301 20,390 21,592 12,814 17,974 30,383 22,251 14,576 22,738 35,051 24,302 18,723 FUTURES TRANSACTIONS3 By type of deliverable security 12 U.S. Treasury bills 914 814 1,157 802 912 1,177 1,552 864 1,339 1,178 1,301 890 Coupon securities, by maturity 13 Five years or less 2,692 2,779 3,521 2,652 3,505 4,340 3,745 2,744 2,888 2,352 2,572 2,740 14 More than five years 12,198 13,615 13,548 13,196 13,263 14,221 15,102 12,001 12,417 11,078 11,431 13,980 15 Federal agency 0 0 0 0 n.a. 0 0 0 0 0 0 0 16 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 0 OPTIONS TRANSACTIONS4 By type of underlying security 17 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 18 Five years or less 3,493 4,098 3,566 3,308 3,033 4,353 3,120 3,395 4,203 6,176 4,170 5,286 19 More than five years 4,068 5,162 4,714 4,493 4,144 4,767 5,033 4,420 5,664 5,696 5,101 6,257 20 Federal agency 0 0 0 0 0 0 0 0 0 0 0 0 21 Mortgage-backed 791 675 523 286 410 332 704 527 768 388 447 599 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt of primary dealers. Monthly averages are based on the number of trading days in the securities are included when the time to delivery is more than five business days. Forward month. Transactions are assumed evenly distributed among the trading days of the report contracts for mortgage-backed agency securities are included when the time to delivery is week. Immediate, forward, and futures transactions are reported at principal value, which more than thirty business days. does not include accrued interest; options transactions are reported at the face value of the 3. Futures transactions are standardized agreements arranged on an exchange. All underlying securities. futures transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged 2. Outright transactions include immediate and forward transactions. Immediate deliv- on an organized exchange or in the over-the-counter market, and include options on ery refers to purchases or sales of securities (other than mortgage-backed agency securi- futures contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate deliveiy of Major changes in the report form filed by primary dealers induced a break in the dealer mortgage-backed agency securities include purchases and sales for which delivery is scheduled in data series as of the week ending July 6, 1994. thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • January 1995 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1994 1994, week ending IItteemm July Aug. Sept. Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 4,837 3,951 1,892 3,428 4,536 3,329 4,569 -2,886 -5,041 7,108 5,100 Coupon securities, by maturity 2 Five years or less -19,171 -10,548 -16,154 -7,890 -12,922 -17,884 -17,582 -14,920 -20,732 -19,668 -20,534 3 More than five years -28,672 -23,009 -22,764 -21,785 -21,390 -21,848 -24,332 -22,864 -24,944 -25,604 -29,001 4 Federal agency 19,979 19,384 21,300 22,066 19,988 19,704 22,727 22,245 23,172 24,176 21,782 5 Mortgage-backed 45,633 42,402 37,636 39,557 39,194 36,791 36,534 37,702 38,767 38,432 36,609 NET FUTURES POSITIONS By type of deliverable security 6 U.S. Treasury bills -3,552 -5,172 -2,829 -4,027 -2,750 -3,160 -3,691 -2,574 182 176 -1,345 Coupon securities, by maturity 7 Five years or less 5,623 5,561 8,285 5,257 5,912 8,943 9,721 8,156 9,710 7,595 8,109 8 More than five years -616 -5,231 -1,681 -4,252 -1,649 -2,146 -1,471 -2,318 1,333 -340 -365 9 Federal agency 0 0 0 0 0 0 0 0 0 0 0 10 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 Financing5 Reverse repurchase agreements 11 Overnight and continuing 254,524 271,184 261,219 252,868 253,172 266,783 264,681 259,902 262,402 266,164 253,313 12 Term 397,646 377,559 387,909 336,402 372,589 390,638 392,971 402,932 361,674 371,325 405,719 Securities borrowed 13 Overnight and continuing 167,116 175,069 173,812 171,565 172,181 171,039 175,703 174,406 180,525 179,441 183,088 14 Term 51,906 44,620 44,528 45,804 44,573 45,876 44,026 44,362 41,997 42,108 45,726 Securities received as pledge 15 Overnight and continuing 2,313r 2,096r 2,015r 2,089r 2,128 2,055 1,885 1,917 2,283 2,214 2,150 16 Term 3 31 129 80 n.a. n.a. n.a. 129 n.a. 53 n.a. Repurchase agreements 17 Overnight and continuing 465,675 490,518 473,761 472,584 482,859 482,192 478,674 455,305 459,803 458,972 463,363 18 Term 363,779 351,975 359,336 308,801 335,528 362,393 365,882 381,660 330,918 340,792 376,463 Securities loaned 19 Overnight and continuing 4,323 4,132 4,305 4,658 3,945 3,586 3,931 5,324 5,827 5,505 5,557 20 Term 1,372 1,103 835 1,164 959 671 691 1,023 820 1,104 1,363 Securities pledged 21 Overnight and continuing 3344,,770000rr 2288,,559999rr 3322,,445599rr 31,509r 28,808 30,439 34,140 35,808 34,702 33,765 34,316 22 Term 1,085 4,616 4,485 6,442 4,543 4,310 4,434 4,728 4,215 3,973 3,894 Collateralized loans 23 Overnight and continuing 20,164 22,395 18,407 21,062 18,301 20,502 18,493 16,673 17,220 17,813 21,269 24 Term n.a. n.a. 6,130 n.a. n.a. 5,333 5,765 7,292 n.a. n.a. n.a. MEMO: Matched book6 Securities in 25 Overnight and continuing 207,656 233,796 224,344 213,989 222,706 226,609 228,584 218,267 228,572 221,701 226,856 26 Term 369,889 349,669 355,553 312,893 335,392 360,530 357,269 373,620 339,462 346,234 379,079 Securities out 27 Overnight and continuing 268,075 290,385 282,829 270,225 286,237 284,891 288,381 272,812 279,305 271,377 281,665 28 Term 294,642 289,736 294,208 250,127 269,926 295,396 301,260 315,458 275,978 283,186 316,415 1. Data for positions and financing are obtained from reports submitted to the Federal 5. Overnight financing refers to agreements made on one business day that mature on Reserve Bank of New York by the U.S. government securities dealers on its published list the next business day; continuing contracts are agreements that remain in effect for more of primary dealers. Weekly figures are close-of-business Wednesday data. Positions for than one business day but have no specific maturity and can be terminated without calendar days of the report week are assumed to be constant. Monthly averages are based advance notice by either party; term agreements have a fixed maturity of more than one on the number of calendar days in the month. business day. Financing data are reported in terms of actual funds paid or received, 2. Securities positions are reported at market value. including accrued interest. 3. Net outright postitions include immediate and forward positions. Net immediate 6. Matched-book data reflect financial intermediation activity in which the borrowing positions include securities purchased or sold (other than mortgage-backed agency securi- and lending transactions are matched. Matched-book data are included in the financing ties) that have been delivered or are scheduled to be delivered in five business days or less breakdowns given above. The reverse repurchase and repurchase numbers are not always and "when-issued" securities that settle on the issue date of offering. Net immediate equal because of the "matching" of securities of different values or different types of positions for mortgage-backed agency securities include securities purchased or sold that collateralization. have been delivered or are scheduled to be delivered in thirty business days or less. NOTE "n.a." indicates that data are not published because of insufficient activity. 4. Futures positions reflect standardized agreements arranged on an exchange. All Major changes in the report form filed by primary dealers induced a break in the dealer futures positions are included regardless of time to delivery. data series as of the week ending July 6, 1994. 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 1994 AAggeennccyy 11999900 11999911 11999922 11999933 Apr. May June July Aug. 1 Federal and federally sponsored agencies 434,668 442,772 483,970 570,711 619,302 633,366 646,661 659,206 674,020 2 Federal agencies 42,159 41,035 41,829 45,193 44,390 43,681 43,040 43,416 43,861 3 Defense Department1 7 7 7 6 6 6 6 6 6 4 Export-Import Bank2,3 11,376 9,809 7,208 5,315 4,853 4,853 4,389 4,389 4,389 5 Federal Housing Administration4 393 397 374 255 123 131 138 82 101 6 Government National Mortgage Association certificates of participation 0 0 0 0 0 0 0 0 0 7 Postal Service6 6,948 8,421 10,660 9,732 9,732 9,473 9,473 9,473 9,773 8 Tennessee Valley Authority 23,435 22,401 23,580 29,885 29,676 29,218 29,037 29,466 29,592 9 United States Railway Association6 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 392,509 401,737 442,141 525,518 574,912 589,685 603,621 615,790 630,159 11 Federal Home Loan Banks 117,895 107,543 114,733 141,577 153,539 156,955 160,822 166,137 169,284 12 Federal Home Loan Mortgage Corporation 30,941 30,262 29,631 49,993 65,621 71,274 73,340 78,929 81,270 13 Federal National Mortgage Association 123,403 133,937 166,300 201,112 218,845 223,173 227,897 230,484 237,564 14 Farm Credit Banks8 53,590 52,199 51,910 53,123 52,672 52,534 53,692 52,276 53,844 15 Student Loan Marketing Association9 34,194 38,319 39,650 39,784 44,306 45,820 47,940 48,069 48,313 16 Financing Corporation10 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation11 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 23,055 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 179,083 185,576 154,994 128,187 118,386 116,092 115,603 113,689 112,804 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 11,370 9,803 7,202 5,309 4,847 4,847 4,383 4,383 4,383 21 Postal Service6 6,698 8,201 10,440 9,732 9,732 9,473 9,473 9,473 9,773 22 Student Loan Marketing Association 4,850 4,820 4,790 4,760 0 0 0 0 0 23 Tennessee Valley Authority 14,055 10,725 6,975 6,325 6,075 4,675 4,375 4,375 4,375 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other lending14 25 Farmers Home Administration 52,324 48,534 42,979 38,619 37,839 37,124 35,999 35,104 34,594 26 Rural Electrification Administration 18,890 18,562 18,172 17,578 17,360 17,419 17,357 17,372 17,402 27 Other 70,896 84,931 64,436 45,864 42,533 42,554 44,016 42,982 42,322 1. Consists of mortgages assumed by the Defense Department between 1957 and 1963 10. The Financing Corporation, established in August 1987 to recapitalize the Federal under family housing and homeowners assistance programs. Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987. 2. Includes participation certificates reclassified as debt beginning Oct. 1,1976. 11. The Farm Credit Financial Assistance Corporation, established in January 1988 to 3. On-budget since Sept. 30, 1976. provide assistance to the Farm Credit System, undertook its first borrowing in July 1988. 4. Consists of debentures issued in payment of Federal Housing Administration 12. The Resolution Funding Corporation, established by the Financial Institutions insurance claims. Once issued, these securities may be sold privately on the securities Reform, Recovery, and Enforcement Act of 1989, undertook its first borrowing in October market. 1989. 5. Certificates of participation issued before fiscal year 1969 by the Government 13. The FFB, which began operations in 1974, is authorized to purchase or sell National Mortgage Association acting as trustee for the Farmers Home Administration, obligations issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt the Department of Health, Education, and Welfare, the Department of Housing and Urban solely for the purpose of lending to other agencies, its debt is not included in the main Development, the Small Business Administration, and the Veterans' Administration. portion of the table in order to avoid double counting. 6. Off-budget. 14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans 7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. In- guaranteed by numerous agencies, with the amounts guaranteed by any one agency cludes Federal Agricultural Mortgage Corporation, therefore details do not sum to total. generally being small. The Farmers Home Administration entry consists exclusively of Some data are estimated. agency assets, whereas the Rural Electrification Administration entry consists of both 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is agency assets and guaranteed loans. shown on line 17. 9. Before late 1982, the association obtained financing through the Federal Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • January 1995 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1994 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11999911 11999922 11999933 Mar. Apr. May June July Aug. Sept. Oct. 1 All issues, new and refunding1 154,402 226,818 279,945 15,461 10,129 12,388 14,779 12,450 12310 7,634 9,790 By type of issue 2 General obligation 55,100 78,611 90,599 7,371 3,469 4,029 5,556 7,110 4,177 2,309 2,891 3 Revenue 99,302 136,580 189,346 8,090 6,660 8,359 9,223 5,340 8,133 5,325 6,899 By type of issuer 4 State 24,939 24,874 27,999 3,302 1,013 1,158 1,733 4,686 1,675 1,009 952 5 Special district or statutory authority2 80,614 138,327 178,714 6,145 5,235 8,085 9,335 4,931 7,963 4,962 6,511 6 Municipality, county, or township 48,849 63,617 73,232 6,014 3,881 3,145 3,711 2,833 2,672 1,663 2,327 7 Issues for new capital 116,953 101,865 91,434 10,114 8,147 9,125 9,726 10348 10,593 5,961 8383 By use of proceeds 8 Education 21,121 18,852 16,831 1,859 2,102 1,933 1,945 1,147 2,075 883 1,596 9 Transportation 13,395 14,357 9,167 401 1,453 1,037 2,033 290 1,088 334 1,135 10 Utilities and conservation 21,039 12,164 12,014 540 707 423 856 694 784 433 1,887 11 Social welfare 25,648 16,744 13,837 1,227 1,475 2,136 1,312 1,698 2,117 1,897 n.a. 12 Industrial aid 8,376 6,188 6,862 470 601 657 935 959 1,128 403 420 13 Other purposes 30,275 33,560 32,723 5,617 1,809 2,939 2,645 5,560 3,401 2,011 2,396 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 1994 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, oorr iissssuueerr 11999911 11999922 11999933 Feb. Mar. Apr. May June July Aug.' Sept. 1 AU issues' 465,246 559,827 764309 47,893r 52,881 35,no' 44,262r 49,456r 29391' 38,898 30,923 2 Bonds2 389,822 471,502 641,498 40,087r 43,671 29,645r 40,589r 43,126 25,927r 35,566 27376 By type of offering 3 Public, domestic 286,930 378,058 486,879 32,770' 41,097 26,436r 33,414r 38,387 22,194' 31,160 24,403 4 Private placement, domestic3 74,930 65,853 116,240 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 27,962 27,591 38,379 7,317 2,574 3,209 7,175 4,738 3,733' 4,406 3,172 By industry group 6 Manufacturing 86,628 82,058 88,002 3,586 2,446 2,229 3,266 2,093r 2,107 2,054 2,165 7 Commercial and miscellaneous 36,666 43,111 60,443 2,188 3,020 990 2,496 3,177 1,428' 3,769 2,077 8 Transportation 13,598 9,979 10,756 100 920 97 150 1,082 248 315 229 9 Public utility 23,944 48,055 56,272 l,768r 1,632 546 1,071 681 472 320 707 10 Communication 9,431 15,394 31,950 2,115 2,090 1,298 944 618 429 345 526 11 Real estate and financial 219,555 272,904 394,076 30,330 33,563 24,484r 32,662r 35,475r 21,243' 28,764 21,872 12 Stocks2 75,424 88325 n.a. 7,806 9,210 5,465 3,674r 6331r 3,664r 3332 3348 By type of offering 13 Public preferred 17,085 21,339 19,898 1,318 1,969 2,248 695 1,366 599 710 555 1 1 4 5 C Pr o i m va m te o p n l acement3 4 1 8 0 , , 2 1 3 0 0 9 5 9 7 , , 8 1 6 1 7 8 8 1 7 1 , , 3 9 5 1 6 7 6 n ,4 .a 8 . 8 7 n , . 2 a 4 . 1 3 n ,2 .a 1 . 8 2 n ,9 .a 7 . 9 r 4 n ,9 .a 6 . 5' 3 n ,0 .a 6 . 5' 2 n , . 6 a 2 . 2 2 n , . 7 a 9 . 3 By industry group 16 Manufacturing 24,111 22,723 22,271 1,558 2,499 2,696 956 1,056 489 569 860 17 Commercial and miscellaneous 19,418 20,231 25,761 1,630 1,491 773 850 1,853' 708' 838 865 18 Transportation 2,439 2,595 2,237 589 358 106 105r 449 75 50 223 19 Public utility 3,474 6,532 7,050 43 480 75 239 297 0 180 78 20 Communication 475 2,366 3,439 120 0 0 32 28 0 0 0 21 Real estate and financial 25,507 33,879 49,889 3,867 4,381 1,815 1,492 2,647' 2,386 1,691 1,323 1. Figures represent gross proceeds of issues maturing in more than one year; they are 2. Monthly data cover only public offerings. the principal amount or number of units calculated by multiplying by the offering price. 3. Monthly data are not available. Figures exclude secondary offerings, employee stock plans, investment companies other SOURCES. Beginning July 1993, Securities Data Company and the Board of Governors than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. of the Federal Reserve System. 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 1994 IItteemm 11999922 11999933 Feb. Mar. Apr. May June July Aug.r Sept. 1 Sales of own shares2 647,055 851,885 78,032 87,381 71,164 65,179 65,333 59,258 64,833 62,353 2 Redemptions of own shares 447,140 567,881 56,235 73,395 61,925 55,036 56,068 50,275 53,242 53,554 3 Net sales3 199,915 284,004 21,797 13,986 9,239 10,144 9,265 8,983 1,592 8,799 4 Assets4 1,056,310 1,510,209 1,561,705 1,500,745 1,510,827 1,529,478 1,509,998 1,552,652 1,604,961 1,587,586 5 Cash5 73,999 100,209 113,975 112,399 118,221 119,982 114,885 120,129 120,315 118,457 6 Other 982,311 1,409,838 1,447,730 1,388,347 1,392,606 1,409,496 1,395,113 1,432,523 1,484,646 1,469,129 1. Data on sales and redemptions exclude money market mutual funds but include 4. Market value at end of period, less current liabilities. limited-maturity municipal bond funds. Data on asset positions exclude both money 5. Includes all U.S. Treasury securities and other short-term debt securities. market mutual funds and limited-maturity municipal bond funds. SOURCE. Investment Company Institute. Data based on reports of membership, which 2. Includes reinvestment of net income dividends. Excludes reinvestment of capital comprises substantially all open-end investment companies registered with the Securities gains distributions and share issue of conversions from one fund to another in the same and Exchange Commission. Data reflect underwritings of newly formed companies after group. their initial offering of securities. 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 1994 AAccccoouunntt 11999911 11999922 11999933 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 390.3 405.1 485.8 432.5 442.5 473.1 493.5 533.9 508.2 546.4 557.1 2 Profits before taxes 365.2 395.9 462.4 413.5 432.7 456.6 458.7 501.7 483.5 523.1 539.2 3 Profits-tax liability 131.1 139.7 173.2 148.6 159.8 171.8 169.9 191.5 184.1 201.7 208.7 4 Profits after taxes 234.1 256.2 289.2 264.8 273.0 284.8 288.9 310.2 299.4 321.4 330.5 5 Dividends 160.0 171.1 191.7 182.1 188.2 190.7 193.2 194.6 196.3 202.5 207.9 6 Undistributed profits 74.1 85.1 97.5 82.7 84.7 94.1 95.6 115.6 103.0 118.9 122.6 7 Inventory valuation 5.8 -6.4 -6.2 2.1 -11.2 -10.0 3.0 -6.5 -12.3 -14.1 -19.6 8 Capital consumption adjustment 19.4 15.7 29.5 16.9 21.0 26.5 31.7 38.8 37.0 37.4 37.5 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 1993 1994 IInndduussttrryy 11999922 11999933 1199994411 Ql Q2 Q3 Q4 Ql Q2 Q3 Q41 1 Total nonfarm business 546.60 586.73 63837 563.48 578.95 594.56 604.51 619.34 637.08 651.92 645.13 Manufacturing 2 Durable goods industries 73.32 81.45 92.78 78.19 80.33 82.74 83.64 86.03 91.71 98.97 94.44 3 Nondurable goods industries 100.69 98.02 99.77 95.80 97.22 99.74 98.51 99.02 102.28 98.39 99.39 Nonmanufacturing 4 Mining 8.88 10.08 11.24 8.98 9.10 11.09 10.92 11.43 10.70 11.57 11.27 Transportation 5 Railroad 6.67 6.14 6.72 6.16 5.94 5.89 6.55 7.46 5.36 6.65 7.40 6 Air 8.93 6.42 3.95 7.26 6.63 6.70 5.06 4.23 4.53 3.86 3.16 7 Other 7.04 9.22 10.53 8.96 8.92 8.74 10.23 10.77 9.70 10.22 11.42 Public utilities 8 Electric 48.22 52.55 52.25 49.98 50.61 52.96 55.60 48.68 53.55 54.15 52.60 9 Gas and other 23.99 23.43 24.20 23.79 23.83 22.98 23.27 24.51 22.96 24.35 24.97 10 Commercial and other2 268.84 299.44 336.93 284.35 296.35 303.74 310.73 327.20 336.28 343.76 340.48 1. Figures are amounts anticipated by business. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. "Other" consists of construction, wholesale and retail trade, finance and insurance, personal and business services, and communication. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • January 1995 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1992 1993R 1994R AAccccoouunntt 11999911RR 11999922RR 11999933RR Q4R Q1 Q2 Q3 Q4 Q1 Q2 ASSETS 1 Accounts receivable, gross2 484.6 491.8 482.8 491.8 477.9 473.7 474.0 482.8 494.5 511.3 2 Consumer 121.7 118.3 116.5 118.3 112.6 110.6 111.0 116.5 120.1 124.3 3 Business 295.8 301.3 294.6 301.3 292.7 291.8 291.9 294.6 302.3 313.2 4 Real estate 67.1 72.2 71.7 72.2 72.5 71.4 71.1 71.7 72.1 73.8 5 LESS: Reserves for unearned income 56.1 53.2 50.7 53.2 50.1 49.7 49.5 50.7 51.2 51.9 6 Reserves for losses 13.1 16.2 11.2 16.2 15.2 10.8 11.2 11.2 11.6 12.1 7 Accounts receivable, net 415.4 422.4 420.9 422.4 412.6 413.2 413.3 420.9 431.7 447.3 8 All other 144.9 142.5 170.9 142.5 150.6 151.5 163.9 170.9 171.2 174.6 9 Total assets 560.3 564.9 591.8 564.9 5633 564.7 5773 591.8 602.9 621.9 LIABILITIES AND CAPITAL 10 Bank loans 42.3 37.6 25.3 37.6 34.1 29.4 25.8 25.3 24.2 23.3 11 Commercial paper 159.5 156.4 159.2 156.4 149.8 144.5 149.9 159.2 165.9 171.2 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 35.5 39.5 42.7 39.5 43.1 45.0 44.6 42.7 41.1 44.7 15 Not elsewhere classified 190.2 196.3 206.0 196.3 197.3 199.9 204.2 206.0 211.7 219.6 16 All other liabilities 68.4 68.0 87.1 68.0 72.5 77.8 83.8 87.1 90.5 89.9 17 Capital, surplus, and undivided profits 64.5 67.1 71.4 67.1 66.5 68.1 68.9 71.4 69.5 73.2 18 Total liabilities and capital 560.3 564.9 591.8 564.9 563.3 564.7 5773 591.8 602.9 621.9 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 1994 TTyyppee ooff ccrreeddiitt 11999911RR 11999922RR 11999933RR Apr/ May June Jul/ Aug.r Sept. Seasonally adjusted 11 TToottaall 523,824 540,679 546,020 565,290 573,851 576,239 571,470 579,032 590,528 22 33 CC RR oo eeaa nn ll ss uu ee mm sstt ee aa rr ttee 22 1 6 5 7 4 , , 3 3 7 8 6 9 1 7 5 2 7 , ,8 4 5 9 7 6 1 7 6 1 0 , , 9 8 9 0 1 2 1 7 6 3 3 , , 0 7 6 9 6 6 1 7 6 4 6 , , 3 5 7 3 1 4 1 7 6 4 8 , , 5 5 0 3 3 1 1 7 6 5 6 , , 3 6 2 3 1 9 1 7 6 5 6 , , 5 9 2 2 4 1 1 7 7 6 2 , , 4 5 2 5 8 9 44 BBuussiinneessss 302,060 310,325 313,226 328,428 332,946 333,205 329,510 336,587 341,542 Not seasonally adjusted 5 Total 527,329 544,691 550,387 567,193 573,773 577,546 568,648 575,769 588,541 6 Consumer 155,671 159,558 162,770 164,500 165,580 167,909 164,749 166,501 172,014 7 Motor vehicles 62,232 57,259 56,057 60,660 59,398 59,788 58,107 58,589 60,522 8 Other consumer3 59,468 61,020 60,396 62,146 62,806 64,530 65,095 66,608 69,796 9 Securitized motor vehicles4 23,361 29,734 36,024 31,328 32,623 32,705 31,848 31,787 32,372 10 Securitized other consumer4 10,610 11,545 10,293 10,366 10,753 10,886 9,699 9,517 9,324 11 Real estate2 67,132 72,243 71,727 73,297 74,215 73,755 75,379 76,012 76,589 12 Business 304,526 312,890 315,890 329,396 333,978 335,882 328,520 333,256 339,938 1 1 3 4 Mo R to et r a i v l e 5 hicles 9 23 1 , , 9 5 6 5 7 4 8 2 9 0 , , 0 5 1 4 1 1 9 1 5 8 , , 1 0 7 9 3 1 1 2 0 0 2 , , 7 3 7 0 2 9 1 2 0 0 4 , , 8 0 8 2 2 3 1 2 0 1 5 , , 0 8 2 2 4 8 1 2 0 0 1 , , 6 87 7 8 0 1 2 0 0 2 , , 2 6 7 5 2 5 1 2 0 1 6 , , 1 3 6 6 4 5 15 Wholesale6 31,164 29,890 31,148 31,308 31,215 31,188 26,154 25,875 27,201 16 Leasing 36,423 38,580 45,934 50,229 51,926 53,616 55,054 56,508 58,000 17 Equipment 140,396 151,424 145,452 147,267 151,182 151,542 151,480 151,388 152,782 18 Retail 30,952 33,521 35,513 37,035 38,518 39,062 39,348 39,629 39,357 19 Wholesale6 9,671 8,680 8,001 8,329 8,421 8,419 8,859 8,968 9,119 20 Leasing 99,773 109,223 101,938 101,903 104,243 104,061 103,273 102,791 104,306 21 Other business7 63,802 60,856 53,997 56,962 55,433 55,849 54,444 56,389 58,101 22 Securitized business assets4 8,774 11,599 21,268 22,858 23,340 22,663 20,718 22,824 22,690 23 Retail 576 1,120 2,483 2,058 2,406 2,619 2,480 2,656 2,564 24 Wholesale 5,285 5,756 10,584 14,349 14,577 14,240 12,817 14,147 14,411 25 Leasing 2,913 4,723 8,201 6,451 6,357 5,804 5,421 6,021 5,715 1. Includes finance company subsidiaries of bank holding companies but not of 4. Outstanding balances of pools upon which securities have been issued; these retailers and banks. Data are before deductions for unearned income and losses. Data in balances are no longer carried on the balance sheets of the loan originator. this table also appear in the Board's G.20 (422) monthly statistical release. For ordering 5. Passenger car fleets and commercial land vehicles for which licenses are required. address, see inside front cover. 6. Credit arising from transactions between manufacturers and dealers, that is, floor 2. Includes all loans secured by liens on any type of real estate, for example, first and plan financing. junior mortgages and home equity loans. 7. Includes loans on commercial accounts receivable, factored commercial accounts, 3. Includes personal cash loans, mobile home loans, and loans to purchase other types and receivable dealer capital; small loans used primarily for business or farm purposes; of consumer goods such as appliances, apparel, general merchandise, and recreation and wholesale and lease paper for mobile homes, campers, and travel trailers. vehicles. Digitized for FRASER 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 1994 IItteemm 11999911 11999922 11999933 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 155.0 158.1 163.1 166.1 171.6 172.6 166.0 167.6 170.6 173.4 2 Amount of loan (thousands of dollars) 114.0 118.1 123.0 127.6 132.2 130.0 129.0 129.3 133.7 131.9 3 Loan-to-price ratio (percent) 75.0 76.6 78.0 79.3 78.5 78.0 79.4 79.0 79.4 78.3 4 Maturity (years) 26.8 25.6 26.1 26.7 27.6 26.5 27.5 28.0 27.9 27.6 5 Fees and charges (percent of loan amount)2 1.71 1.60 1.30 1.16 1.45 1.30 1.35 1.38 1.36 1.22 Yield (percent per year) 6 Contract rate1 9.02 7.98 7.02 7.13 7.20 7.41 7.50 7.45 7.48 7.55 7 Effective rate1'3 9.30 8.25 7.24 7.31 7.43 7.62 7.71 7.67 7.70 7.76 8 Contract rate (HUD series)4 9.20 8.43 7.37 8.56 8.61 8.72 8.64 8.68 8.96 n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 9.25 8.46 7.46 8.63 8.63 9.03 8.65 8.66 9.10 n.a. 10 GNMA securities 8.59 7.71 6.65 7.93 8.05 8.01 8.23 8.15 8.28 8.66 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 128,983 158,119 190,861 201,542 206,147 208,180 210,666 212,680 215,249 218,479 12 ' FHA/VA insured 21,796 22,593 23,857 25,088 25,303 25,390 25,477 25,604 25,800 26,226 13 Conventional 107,187 135,526 167,004 176,454 180,844 182,790 185,189 187,076 189,449 192,253 Mortgage transactions (during period) 14 Purchases 37,202 75,905 92,037 6,677 7,238 4,386 4,628 4,077 4,266 5,003 Mortgage commitments (during period) 15 Issued7 40,010 74,970 92,537 4,788 3,801 4,268 3,798 3,776 4,880 3,421 16 To sell8 7,608 10,493 5,097 90 281 1 0 0 0 48 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)* 17 Total 26,809 33,665 55,012 59,352 60,799 62,232 62,993 64,118 66,478 69,340 18 FHA/VA insured 460 352 321 309 304 299 296 291 287 284 19 Conventional 26,349 33,313 54,691 59,043 60,495 61,933 62,697 63,827 66,191 69,057 Mortgage transactions (during period) 20 Purchases 99,965 191,125 229,242 14,589 10,629 8,341 6,535 6,407 5,512 8,351 21 Sales 92,478 179,208 208,723 14,175 10,228 8,097 6,338 5,828 5,213 8,139 Mortgage commitments (during period)9 22 Contracted 114,031 261,637 274,599 22,765 9,586 7,252 5,820 5,649 5,035 7,288 1. Weighted averages based on sample surveys of mortgages originated by major 6. Average net yields to investors on fully modified pass-through securities backed by institutional lender groups for purchase of newly built homes; compiled by the Federal mortgages and guaranteed by the Government National Mortgage Association (GNMA), Housing Finance Board in cooperation with the Federal Deposit Insurance Corporation. assuming prepayment in twelve years on pools of thirty-year mortgages insured by the 2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or Federal Housing Administration or guaranteed by the Department of Veterans Affairs. the seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby commitments 3. Average effective interest rate on loans closed for purchase of newly built homes, converted. 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 mortgages; from 9. Includes conventional and government-underwritten loans. The Federal Home Loan U.S. Department of Housing and Urban Development (HUD). Based on transactions on Mortgage Corporation's mortgage commitments and mortgage transactions include activthe first day of the subsequent month. ity under mortgage securities swap programs, whereas the corresponding data for FNMA 5. Average gross yield on thirty-year, minimum-downpayment first mortgages exclude swap activity. insured by the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • January 1995 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1993 1994 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999900 11999911 11999922 Q2 Q3 Q4 Q1 Q2P 1 All holders 3,762,872 3,924,782 4,049,256 4,109,649 4,167,465 4,209,912 4,236,258 4,279,533 By type of property 2 One- to four-family residences 2,616,288 2,780,044 2,959,558 3,034,990 3,095,463 3,144,895 3,178,154 3,217,521 3 Multifamily residences 309,369 306,410 295,417 291,258 290,544 290,346 288,994 291,587 4 Commercial 758,313 759,023 713,862 702,720 700,642 693,824 688,144 688,226 5 78,903 79,306 80,419 80,681 80,816 80,847 80,966 82,199 By type of holder 6 Major financial institutions 1,914,315 1,846,726 1,769,187 1,765,667 1,769,890 1,767,685 1,746,317 1,760,541 7 Commercial banks2 844,826 876,100 894,513 910,989 922,610 940,293 937,973 956,767 8 One- to four-family 455,931 483,623 507,780 526,817 537,602 556,443 554,125 568,757 9 Multifamily 37,015 36,935 38,024 38,058 37,652 38,630 38,456 39,074 10 Commercial 334,648 337,095 328,826 325,519 326,508 324,359 324,147 327,021 11 Farm 17,231 18,447 19,882 20,595 20,848 20,861 21,246 21,916 12 Savings institutions3 801,628 705,367 627,972 612,435 609,654 598,330 584,345 585,525 13 One- to four-family 600,154 538,358 489,622 480,696 478,456 469,959 457,982 462,122 14 Multifamily 91,806 79,881 69,791 68,306 68,440 67,362 66,903 66.336 15 Commercial 109,168 86,741 68,235 63,111 62,439 60,704 59,163 56,767 16 Farm 500 388 324 322 320 305 297 301 17 Life insurance companies 267,861 265,258 246,702 242,243 237,626 229,061 223,999 218,249 18 One- to four-family 13,005 11,547 11,441 11,218 11,001 10,578 10,340 10,064 19 Multifamily 28,979 29,562 27,770 27,227 26,701 25,676 25,098 24,426 20 Commercial 215,121 214,105 198,269 194,396 190,638 183,322 179,191 174,398 21 Farm 10,756 10,044 9,222 9,402 9,287 9,484 9,370 9,361 22 Federal and related agencies 239,003 266,146 286,263 298,991 309,579 321,486 325,835 332,543 23 Government National Mortgage Association 20 19 30 45 43 22 20 12 24 One- to four-family 20 19 30 38 37 15 13 12 25 Multifamily 0 0 0 7 7 7 7 0 26 Fanners Home Administration4 41,439 41,713 41,695 41,446 41,424 41,386 41,209 41,370 27 One- to four-family 18,527 18,496 16,912 16,133 15,714 15,303 14,870 14,459 28 Multifamily 9,640 10,141 10,575 10,739 10,830 10,940 11,037 11,147 29 Commercial 4,690 4,905 5,158 5,250 5,347 5,406 5,399 5,526 30 Farm 8,582 8,171 9,050 9,324 9,533 9,739 9,903 10,239 31 Federal Housing and Veterans' Administrations 8,801 10,733 12,581 12,945 11,797 12,215 11,344 11,169 32 One- to four-family 3,593 4,036 5,153 5,635 4,850 5,364 4,738 4,826 33 Multifamily 5,208 6,697 7,428 7,311 6,947 6,851 6,606 6,343 34 Resolution Trust Corporation 32,600 45,822 32,045 21,973 19,925 17,284 14,241 13,908 35 One- to four-family 15,800 14,535 12,960 8,955 8,381 7,203 6,312 6,030 36 Multifamily 8,064 15,018 9,621 6,743 6,002 5,327 4,190 4,181 37 Commercial 8,736 16,269 9,464 6,275 5,543 4,754 3,739 3,697 38 Farm 0 0 0 0 0 0 0 0 39 Federal National Mortgage Association 104,870 112,283 137,584 151,513 160,721 166,642 172,343 175,377 40 One- to four-family 94,323 100,387 124,016 137,340 146,009 151,310 156,576 159,437 41 Multifamily 10,547 11,896 13,568 14,173 14,712 15,332 15,767 15,940 42 Federal Land Banks 29,416 28,767 28,664 28,592 28,810 28,460 28,181 28,475 43 One- to four-family 1,838 1,693 1,687 1,682 1,695 1,675 1,658 1,675 44 Farm 27,577 27,074 26,977 26,909 27,115 26,785 26,523 26,800 45 Federal Home Loan Mortgage Corporation 21,857 26,809 33,665 42,477 46,859 55,476 58,498 62,232 46 One- to four-family 19,185 24,125 31,032 39,905 44,315 52,929 55,942 59,652 47 Multifamily 2,672 2,684 2,633 2,572 2,544 2,547 2,556 2,580 48 Mortgage pools or trusts5 1,079,103 1,250,666 1,425,546 1,473,323 1,514,002 1,546,818 1,602,595 1,639,946 49 Government National Mortgage Association 403,613 425,295 419,516 413,166 415,076 414,066 423,446 435,709 50 One- to four-family 391,505 415,767 410,675 404,425 405,963 404,864 414,194 426,363 51 Multifamily 12,108 9,528 8,841 8,741 9,113 9,202 9,251 9,346 52 Federal Home Loan Mortgage Corporation 316,359 359,163 407,514 422,882 430,089 439,029 457,577 465,330 53 One- to four-family 308,369 351,906 401,525 417,646 425,154 434,494 453,407 461,508 54 Multifamily 7,990 7,257 5,989 5,236 4,935 4,535 4,170 3,822 55 Federal National Mortgage Association 299,833 371,984 444,979 465,220 481,880 495,525 507,376 514,855 56 One- to four-family 291,194 362,667 435,979 456,645 473,599 486,804 498,489 505,730 57 Multifamily 8,639 9,317 9,000 8,575 8,281 8,721 8,887 9,125 58 Farmers Home Administration4 66 47 38 32 30 28 26 22 59 One- to four-family 17 11 8 6 6 5 5 4 60 Multifamily 0 0 0 0 0 0 0 0 61 Commercial 24 19 17 15 14 13 12 10 62 Farm 26 17 13 11 10 10 9 8 63 Private mortgage conduits 59,232 94,177 153,499 172,023 186,927 198,171 214,171 224,030 64 One- to four-family 53,335 84,000 132,000 145,000 158,000 164,000 177,000 179,500 65 Multifamily 731 3,698 6,305 7,407 7,991 8,701 9,481 12,241 66 Commercial 5,166 6,479 15,194 19,616 20,936 25,469 27,689 32,289 67 Farm 0 0 0 0 0 0 0 0 68 Individuals and others6 530,452 561,244 568,260 571,668 573,994 573,923 561,511 546,503 69 One- to four-family 349,491 368,874 378,739 382,849 384,681 383,948 372,503 357,381 70 Multifamily 85,969 83,796 85,871 86,164 86,391 86,516 86,586 87,027 71 Commercial 80,761 93,410 88,699 88,538 89,219 89,797 88,803 88,518 72 14,232 15,164 14,951 14,117 13,703 13,662 13,618 13,576 1. Multifamily debt refers to loans on structures of five or more units. 6. Other holders include mortgage companies, real estate investment trusts, state and 2. Includes loans held by nondeposit trust companies but not loans held by bank trust local credit agencies, state and local retirement funds, noninsured pension funds, credit departments. unions, and finance companies. 3. Includes savings banks and savings and loan associations. SOURCES. Based on data from various institutional and government sources. Separation 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated of nonfarm mortgage debt by type of property, if not reported directly, and interpolations from FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of and extrapolations, when required for some quarters, are estimated in part by the Federal accounting changes by the Farmers Home Administration. Reserve. Line 64 from Inside Mortgage Securities. 5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by the agency indicated. 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 1994' HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999911 11999922'' 11999933'' Apr. May June July Aug. Sept. Seasonally adjusted 11 TToottaall 728,389* 731,098 794,300 823,342 836,936 847,715 854,469 869,628 880,194 22 AAuuttoommoobbiillee 259,594' 257,678 282,036 293,018 298,278 303,526 305,193 309,721 315,313 33 RReevvoollvviinngg 245,281' 257,304 287,875 301,260 305,528 309,472 313,591 321,365 323,658 44 OOtthheerr 223,514' 216,117 224,389 229,064 233,130 234,717 235,685 238,542 241,224 Not seasonally adjusted 5 Total 744,039r 747,690 812,782 818,956 830,065 842,126 847,727 868,049 880,837 By major holder 6 Commercial banks 340,713 330,088 368,549 376,379 380,063 386,235 393,927 404,438 441100,,226666 7 Finance companies 121,700' 118,279 116,453 122,806 122,204 124,318 123,202 125,197 130,318 8 Credit unions 90,302 91,694 101,634 102,718 105,718 108,183 109,838 113,122 114,961 9 Savings institutions 41,373 37,049 37,855 37,472 37,803 38,134 38,055 37,975 37,943 10 Nonfinancial business 46,658 49,184 57,637 53,756 54,505 55,374 55,775 56,496 55,967 11 Pools of securitized assets2 103,293 121,396 130,654 125,825 129,772 129,882 126,930 130,821 131,382 By major type of credit3 1? Automobile 259,863' 258,226 282,825 291,957 297,172 302,874 304,026 331100,,992255 331166,,993300 13 Commercial banks 112,666 109,623 123,358 130,104 132,979 136,038 138,907 142,452 144,353 14 Finance companies 62,232' 57,259 56,057 60,660 59,398 59,788 58,107 58,589 60,522 15 Pools of securitized assets 28,588 33,888 39,490 34,531 35,836 35,817 34,436 34,584 35,149 16 Revolving 258,841' 271,368 303,444 297,740 301,609 305,758 309,716 319,003 322,035 17 Commercial banks 138,005 132,966 149,527 149,265 149,972 153,032 156,940 161,417 165,527 18 Nonfinancial business 41,658 43,974 52,113 48,279 49,005 49,845 50,218 50,873 50,314 19 Pools of securitized assets 63,333 74,931 79,887 79,927 82,064 82,075 81,704 85,644 85,051 ?n Other 225,335' 218,096 226,513 229,259 231,284 233,494 233,985 238,121 241,872 71 Commercial banks 90,042 87,499 95,664 97,010 97,112 97,165 98,080 100,569 100,386 77. Finance companies 59,468' 61,020 60,396 62,146 62,806 64,530 65,095 66,608 69,796 73 Nonfinancial business 5,000 5,210 5,524 5,477 5,500 5,529 5,557 5,623 5,653 24 Pools of securitized assets 11,372 12,577 11,277 11,367 11,872 11,990 10,790 10,593 11,182 1. The Board's series on amounts of credit covers most short- and intermediate-term 2. Outstanding balances of pools upon which securities have been issued; these credit extended to individuals that is scheduled to be repaid (or has the option of balances are no longer carried on the balance sheets of the loan originator. repayment) in two or more installments. 3. Totals include estimates for certain holders for which only consumer credit totals are Data in this table also appear in the Board's G.19 (421) monthly statistical release. For available. ordering address, see inside front cover. 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year except as noted 1994 IItteemm 11999911 11999922 11999933 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks2 11.14 9.29 8.09 7.76 8.41 n.a. 15.18 14.04 13.47 12.96 13.33 n.a. 13.70 12.67 11.87 11.60 12.04 n.a. 18.23 17.78 16.83 16.15 16.25 n.a. Auto finance companies 12.41 9.93 9.48 9.13 9.71 9.92 9.96 10.17 10.32 10.13 1155..6600 1133..8800 12.79 12.68 13.25 13.51 13.78 13.86 13.92 13.98 OTHER TERMS3 Maturity (months) 55.1 54.0 54.5 54.0 53.8 53.5 53.3 53.9 54.2 54.3 47.2 47.9 48.8 50.1 50.0 50.6 50.0 50.2 50.1 50.2 Loan-to-value ratio 88 89 91 92 92 93 94 93 93 93 96 97 98 99 99 99 100 100 100 100 Amount financed (dollars) 1122,,449944 111333,,,555888444 14,332 14,821 15,067 15,194 15,180 15,319 15,283 15,419 88,,888844 999,,,111111999 99,,887755 1100,,442277 1100,,447777 1100,,660066 1100,,665566 1100,,773355 1100,,775555 1100,,990066 1. The Board's series on amounts of credit covers most short- and intermediate-term 2. Data are available for only the second month of each quarter, credit extended to individuals that is scheduled to be repaid (or has the option of 3. At auto finance companies, repayment) in two or more installments. Data in this table also appear in the Board's G.19 (421) monthly statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • January 1995 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1992 1993 1994 Q4 Qi Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.... 729.0 635.6 475.8 536.1 630.5 456.0 487.3 757.7 603.2 673.7 660.0 491.3 By sector and instrument 2 U.S. government 146.4 246.9 278.2 304.0 256.1 242.7 240.5 336.4 173.4 274.2 210.5 122.9 3 Treasury securities 144.7 238.7 292.0 303.8 248.3 240.0 237.4 332.3 157.2 266.5 211.8 118.2 4 Budget agency issues and mortgages 1.6 8.2 -13.8 .2 7.8 2.7 3.2 4.1 16.2 7.7 -1.3 4.7 5 Private 582.7 388.7 197.5 232.1 374.4 213.3 246.8 421.3 429.8 399.5 449.5 368.4 By instrument 6 Tax-exempt obligations 69.8 48.7 68.7 31.1 77.3 -15.8 88.6 127.5 65.8 27.3 4.0 -32.2 7 Corporate bonds 73.8 47.1 78.8 67.5 75.3 54.0 85.7 75.7 72.6 67.4 48.0 52.0 8 Mortgages 281.2 199.5 161.4 123.9 157.1 86.6 97.6 157.1 220.5 153.2 160.9 129.1 9 Home mortgages 224.5 185.6 163.8 179.5 185.3 164.9 123.0 194.5 237.3 186.6 188.7 115.6 10 Multifamily residential 11.5 4.8 -3.1 -11.2 -6.3 -26.5 -6.1 -11.4 -4.9 -2.6 -5.5 9.7 11 Commercial 47.8 9.3 .4 -45.5 -22.4 -51.4 -19.5 -26.8 -12.4 -30.9 -22.9 -1.1 12 Farm -2.5 -.3 .4 1.1 .4 -.5 .2 .8 .5 .1 .5 4.9 13 Consumer credit 45.8 16.0 -15.0 5.5 64.4 29.6 22.1 48.3 76.1 111.0 74.4 118.7 14 Bank loans n.e.c 27.3 .4 -40.9 -13.8 5.5 19.1 -15.8 -.3 11.5 26.7 77.9 69.1 15 Commercial paper 21.4 9.7 -18.4 8.6 10.0 22.3 -14.1 33.2 17.2 3.8 8.0 16.4 16 Other loans 63.3 67.4 -37.1 9.2 -15.2 17.5 -17.2 -20.2 -33.8 10.2 76.3 15.3 By borrowing sector 17 Household 281.6 218.9 170.9 217.7 293.8 249.6 176.3 275.3 375.3 348.4 315.7 269.7 18 Nonfinancial business 233.1 123.7 -35.9 -2.0 21.1 1.9 -9.9 38.9 10.4 44.9 145.1 152.5 19 Farm .6 2.3 2.1 1.0 2.0 -2.4 -2.3 2.5 4.2 3.5 2.9 10.7 20 Nonfarm noncorporate 40.3 10.1 -28.5 -43.9 -26.1 -53.9 -27.4 -31.7 -28.7 -16.7 15.1 23.7 21 Corporate 192.1 111.3 -9.6 40.9 45.2 58.2 19.7 68.1 34.9 58.0 127.1 118.1 22 State and local government 68.0 46.0 62.6 16.4 59.5 -38.2 80.4 107.1 44.1 6.3 -11.3 -53.8 23 Foreign net borrowing in United States 10.2 23.9 13.9 21.3 46.9 3.6 38.9 42.8 83.1 22.9 -64.0 -4.6 24 Bonds 4.9 21.4 14.1 14.4 59.4 26.0 66.5 45.3 84.5 41.4 29.0 11.1 25 Bank loans n.e.c -.1 -2.9 3.1 2.3 .7 -10.3 1.5 6.6 1.0 -6.3 6.0 -1.2 26 Commercial paper 13.1 12.3 6.4 5.2 -9.0 -12.1 -21.7 -.6 -1.6 -12.0 -101.8 -5.2 27 U.S. government and other loans -7.6 -7.0 -9.8 -.6 -4.2 .0 -7.5 -8.4 -.8 -.1 2.9 -9.3 28 Total domestic plus foreign 739.2 659.4 489.6 557.4 677.4 459.6 526.2 800.5 686.3 696.7 596.0 486.7 Financial sectors 29 Total net borrowing by financial sectors 225.1 202.9 152.6 237.1 276.0 198.8 175.6 168.4 417.7 342.4 479.4 329.8 By instrument 30 U.S. government-related 149.5 167.4 145.7 155.8 157.2 132.6 169.4 56.6 275.3 127.3 327.3 235.3 31 Government-sponsored enterprises securities 25.2 17.1 9.2 40.3 80.6 33.6 32.2 68.8 167.8 53.4 160.0 146.6 32 Mortgage pool securities 124.3 150.3 136.6 115.6 76.6 99.2 137.2 -12.2 107.5 73.9 186.5 88.6 33 Loans from U.S. government .0 -.1 .0 .0 .0 -.1 .0 .0 .0 .0 -19.2 .0 34 75.7 35.5 6.8 81.3 118.9 66.1 6.2 111.8 142.4 215.1 152.1 94.5 35 Corporate bonds 41.5 46.3 67.6 78.5 112.2 97.0 94.1 84.9 134.7 134.9 142.0 96.9 36 Mortgages .3 .6 .5 .6 3.6 .9 1.4 1.4 6.2 5.5 .2 2.2 37 Bank loans n.e.c 13.5 4.7 8.8 2.2 -14.0 -24.1 -34.6 13.2 -16.5 -18.0 -18.3 -32.6 38 Open market paper 31.3 8.6 -32.0 -.7 -6.2 -6.5 -75.1 -16.2 -9.4 76.0 39.0 -4.3 39 Loans from Federal Home Loan Banks -11.0 -24.7 -38.0 .8 23.3 -1.1 20.4 28.4 27.4 16.8 -10.8 32.3 By borrowing sector 40 Government-sponsored enterprises 25.2 17.0 9.1 40.2 80.6 33.5 32.2 68.8 167.8 53.4 140.8 146.6 41 Federally related mortgage pools 124.3 150.3 136.6 115.6 76.6 99.2 137.2 -12.2 107.5 73.9 186.5 88.6 42 75.7 35.5 6.8 81.3 118.9 66.1 6.2 111.8 142.4 215.1 152.1 94.5 43 Commercial banks -1.4 -.7 -11.7 8.8 5.6 14.5 3.5 11.3 6.5 1.2 4.4 -6.1 44 Bank holding companies 6.2 -27.7 -2.5 2.3 8.8 .8 21.1 1.3 .5 12.2 3.5 8.2 45 Funding corporations 12.5 15.4 -6.5 13.2 2.9 3.6 -31.4 -1.6 7.9 36.7 47.4 -21.1 46 Savings institutions -15.1 -30.2 -44.5 -6.7 11.1 -5.4 9.7 12.6 13.5 8.8 -5.6 30.6 47 Credit unions .0 .0 .0 .0 i .1 .0 .3 .3 .1 .1 -.1 48 Life insurance companies .0 .0 .0 .0 .2 -.2 .1 .6 -.1 .4 .0 .2 49 Finance companies 27.4 24.0 18.6 -3.6 -5.0 1.0 -24.4 -20.7 9.0 16.3 62.0 66.4 50 Mortgage companies 10.1 .0 -2.4 8.0 -1.0 -6.4 -25.2 32.4 -.8 -10.4 -27.6 -29.2 51 Real estate investment trusts (REITs) 1.4 .8 1.2 .3 3.5 -5.6 .4 1.3 6.0 6.2 1.2 3.8 52 Issuers of asset-backed securities (ABSs) 28.3 52.3 51.0 56.3 80.5 67.7 61.9 60.5 85.2 114.2 76.6 41.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS'—Continued 1992 1993 1994 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 11999933 Q4 QL Q2 Q3 Q4 QL Q2 All sectors 53 Total net borrowing, all sectors 964.4 862.3 642.2 794.5 953.4 658.4 701.8 968.8 1,104.0 1,039.1 1,075.5 816.5 54 U.S. government securities 295.8 414.4 424.0 459.8 413.3 375.5 409.9 393.0 448.7 401.5 557.0 358.2 55 Tax-exempt securities 69.8 48.7 68.7 31.1 77.3 -15.8 88.6 127.5 65.8 27.3 4.0 -32.2 56 Corporate and foreign bonds 120.2 114.7 160.5 160.4 246.9 177.0 246.3 205.9 291.8 243.7 219.0 160.0 57 Mortgages 281.6 200.1 161.9 124.5 160.7 87.4 98.9 158.4 226.6 158.7 161.1 131.3 58 Consumer credit 45.8 16.0 -15.0 5.5 64.4 29.6 22.1 48.3 76.1 111.0 74.4 118.7 59 Bank loans n.e.c 40.7 2.2 -29.1 -9.4 -7.8 -15.3 -48.9 19.5 -4.0 2.4 65.6 35.3 60 Open market paper 65.9 30.7 -44.0 13.1 -5.1 3.7 -110.9 16.4 6.3 67.7 -54.8 6.9 61 Other loans 44.7 35.6 -84.9 9.5 3.8 16.3 -4.3 -.2 -7.2 26.9 49.2 38.3 Funds raised through mutual funds and corporate equities 62 Total net share issues -60.8 19.7 215.4 296.0 436.5 294.8 344.3 473.5 494.4 434.0 219.0 219.5 63 Mutual funds 37.2 65.3 151.5 211.9 316.8 205.4 268.9 358.0 348.9 291.5 114.0 152.7 64 Corporate equities -98.0 -45.6 64.0 84.1 119.7 89.4 75.4 115.5 145.5 142.4 105.0 66.8 65 Nonfinancial corporations -124.2 -63.0 18.3 27.0 20.9 14.0 8.6 24.8 28.7 21.5 -2.8 10.4 66 Financial corporations 9.0 10.0 15.1 26.4 38.2 27.7 35.2 38.6 38.2 40.9 38.3 17.5 67 Foreign shares purchased in United States 17.2 7.4 30.7 30.7 60.6 47.8 31.6 52.1 78.6 80.0 69.4 38.9 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Financial Statistics • January 1995 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1992 1993 1994 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998899 11999900 11999911 11999922 11999933 Q4 Ql Q2 Q3 Q4 Ql Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 964.4 862.3 642.2 794.5 953.4 658.4 701.8 968.8 1,104.0 1,039.1 1,075.5 816.5 2 Private domestic nonfinancial sectors 137.0 190.1 -7.5 72.0 -2.3 104.3 -40.2 -3.3 -43.9 78.1 465.9 235.0 3 Households 94.7 157.2 -39.6 70.7 -30.9 112.0 -91.0 -70.5 -76.7 114.4 447.1 270.2 4 Nonfarm noncorporate business -.8 -1.7 -3.7 -1.1 -3.2 -1.3 -3.0 -3.2 -3.3 -3.5 -3.6 -3.8 5 Nonfinancial corporate business 13.7 -3.7 6.7 29.2 17.5 31.8 -2.8 16.6 40.8 15.2 33.7 39.1 6 State and local governments 29.3 38.3 29.2 -26.8 14.4 -38.3 56.5 53.7 -4.7 -48.0 -11.2 -70.5 7 U.S. government -3.1 33.7 10.5 -11.9 -18.4 -16.0 -23.2 -27.1 -15.4 -7.9 -40.8 -8.2 8 Foreign 86.6 85.5 26.6 100.5 125.8 98.3 65.6 93.2 123.7 220.5 123.9 54.2 9 Financial sectors 743.8 553.0 612.5 633.9 848.4 471.9 699.6 905.9 1,039.7 748.3 526.5 535.6 10 Government sponsored enterprises -4.1 13.9 15.2 69.0 90.2 80.7 16.7 128.0 140.8 75.2 92.4 104.3 11 Federally related mortgage pools 124.3 150.3 136.6 115.6 76.6 99.2 137.2 -12.2 107.5 73.9 186.5 88.6 12 Monetary authority -7.3 8.1 31.1 27.9 36.2 48.2 42.5 35.7 28.2 38.5 48.8 17.9 13 Commercial banking 177.2 125.1 80.8 95.3 142.2 63.8 100.5 133.4 146.7 188.1 187.3 117.8 14 U.S. commercial banks 146.1 94.9 35.7 69.5 149.6 53.4 103.4 137.4 160.3 197.3 120.8 136.4 15 Foreign banking offices 26.7 28.4 48.5 16.5 -9.8 6.5 -1.4 -14.3 -16.9 -6.5 61.4 -20.7 16 Bank holding companies 2.8 -2.8 -1.5 5.6 .0 .2 -4.5 7.9 1.2 -4.8 3.0 .2 17 Banks in U.S. affiliated areas 1.6 4.5 -1.9 3.7 2.4 3.6 3.0 2.4 2.2 2.1 2.1 1.9 18 Funding corporations 8.0 16.1 15.8 23.5 18.1 11.4 -3.8 1.1 32.4 42.6 19.5 23.5 19 Thrift institutions -90.0 -154.0 -123.5 -61.3 -1.7 -22.6 -30.7 16.0 21.1 -13.3 16.1 37.2 20 Life insurance companies 101.8 94.4 83.2 79.1 105.1 100.8 124.6 97.8 111.8 86.3 50.5 77.6 21 Other insurance companies 29.7 26.5 32.6 12.8 33.3 11.9 27.3 36.0 37.6 32.1 27.9 32.8 22 Private pension funds 81.1 17.2 85.7 37.3 40.2 8.4 118.0 11.1 91.9 -60.1 -97.7 -42.0 23 State and local government retirement funds 46.1 34.9 46.0 34.4 28.1 16.7 -9.3 51.5 24.4 45.9 45.5 49.4 24 Finance companies 32.0 29.0 -12.7 1.7 -5.3 22.3 -26.9 -18.3 2.0 22.0 72.9 24.3 25 Mortgage companies 20.1 .0 11.2 .1 .0 -12.8 -50.4 65.1 -1.6 -13.3 -55.4 -66.2 26 Mutual funds 23.8 41.4 90.3 123.7 164.0 96.1 148.6 194.4 174.6 138.4 -72.6 11.3 27 Closed-end funds 6.6 .2 14.7 17.4 10.2 17.3 16.7 10.5 5.9 7.7 8.7 3.6 28 Money market funds 67.1 80.9 30.1 1.3 12.9 -29.4 -57.3 33.3 25.3 50.3 -37.4 33.7 29 Real estate investment trusts (REITs) .5 -.7 -.7 1.1 .6 2.6 .2 .8 1.0 .2 .7 .7 30 Brokers and dealers 80.2 2.8 17.5 -6.9 9.2 -113.1 75.2 52.5 -7.8 -82.8 -55.7 -34.4 31 Asset-backed securities issuers (ABSs) 27.1 51.1 48.9 53.8 79.1 62.1 61.4 59.4 88.0 107.7 75.8 43.6 32 Bank personal trusts 19.7 15.9 10.0 8.0 9.5 8.3 9.1 10.0 9.9 8.9 12.9 11.7 RELATION OF LIABILITIES TO FINANCIAL ASSETS 33 Net flows through credit markets 964.4 8623 642.2 794.5 953.4 658.4 701.8 968.8 1,104.0 1,039.1 1,075.5 816.5 Other financial sources 34 Official foreign exchange 24.8 2.0 -5.9 -1.6 .8 5.1 3.4 -4.0 1.7 2.2 -.2 -11.2 35 Special drawing rights certificates 3.5 1.5 .0 -2.0 .0 -8.0 .0 .0 .0 .0 .0 .0 36 Treasury currency .6 1.0 .0 .2 .4 .3 .3 .4 .4 .7 .7 .6 37 Life insurance reserves 28.8 25.7 25.7 27.3 35.2 26.3 43.6 35.3 36.6 25.5 20.0 20.1 38 Pension fund reserves 321.2 165.1 360.3 249.7 295.8 267.9 353.4 316.8 356.0 156.9 -27.7 61.0 39 Interbank claims -16.2 35.4 -3.9 61.7 42.8 -14.4 70.2 126.5 -4.5 -20.9 155.5 197.0 40 Checkable deposits and currency 6.4 43.3 86.4 113.8 117.3 51.8 99.7 214.4 73.1 81.9 173.1 -60.4 41 Small time and savings deposits 98.7 63.7 1.5 -57.2 -70.3 -29.9 -108.5 -67.8 -68.1 -36.6 5.2 -66.5 42 Large time deposits 16.9 -66.1 -58.5 -73.2 -23.5 -91.1 -21.6 -26.8 -59.5 13.7 -39.6 -4.8 43 Money market fund shares 90.1 70.3 41.2 3.9 15.8 -33.4 -46.8 61.8 .6 47.7 -10.9 67.8 44 Security repurchase agreements 77.8 -24.2 -16.5 35.5 65.5 -68.7 170.7 37.9 67.8 -14.4 15.3 183.7 45 Foreign deposits 35.7 38.2 -16.7 -7.2 -22.1 -23.2 -11.9 -17.1 -50.7 -8.6 24.9 13.9 46 Mutual fund shares 37.2 65.3 151.5 211.9 316.8 205.4 268.9 358.0 348.9 291.5 114.0 152.7 47 Corporate equities -98.0 -45.6 64.0 84.1 119.7 89.4 75.4 115.5 145.5 142.4 105.0 66.8 48 Security credit 15.6 3.5 51.4 4.2 61.9 -.4 44.8 40.0 76.6 86.5 30.0 -34.1 49 Trade debt 68.2 37.0 3.6 41.5 49.0 46.1 43.2 51.1 49.8 51.9 24.7 23.0 50 Taxes payable 2.4 -4.8 -6.2 8.5 4.6 9.7 7.9 7.3 -1.8 4.9 13.5 3.9 51 Noncorporate proprietors' equity -25.8 -28.3 -3.3 18.4 -11.4 32.8 -9.0 -17.8 7.1 -25.9 -66.4 -75.1 52 Investment in bank personal trusts 19.6 29.7 16.1 -7.1 1.6 -6.0 -4.2 -7.2 .1 17.6 19.0 -8.9 53 Miscellaneous 313.8 135.7 197.2 257.6 309.2 194.5 194.3 431.1 226.1 385.2 287.1 117.1 54 Total financial sources 1,985.7 1,410.6 1,530.2 1,764.5 2,262.7 1,312.8 1,875.5 2,624.2 2,309.9 2,2413 1,918.6 1,463.1 Floats not included in assets (—) 55 U.S. government checkable deposits 8.4 3.3 -13.1 .7 -1.5 -11.8 4.7 2.9 2.1 -15.5 -2.4 .3 56 Other checkable deposits -2.2 8.5 4.5 1.6 -1.3 2.2 -2.0 8.3 -5.2 -6.2 .6 -1.1 57 Trade credit 7.0 9.1 9.7 4.1 16.0 5.0 5.2 25.1 21.9 11.7 23.1 16.3 Liabilities not identified as assets (—) 58 Treasury currency -.2 .2 -.6 -.2 -.2 -.1 -.2 -.2 -.2 -.2 -.2 -.2 59 Interbank claims -4.4 1.6 26.2 -4.9 4.2 -5.5 2.7 .5 -10.4 24.0 -27.9 4.9 60 Security repurchase agreements 32.4 -24.0 6.2 27.9 84.6 8.9 179.6 60.8 66.6 31.3 8.3 130.0 61 Taxes payable 2.7 .1 1.3 14.0 1.0 9.5 -6.9 18.2 1.2 -8.6 -1.0 19.9 62 Miscellaneous -55.6 -35.4 -45.3 -46.0 -36.1 8.4 -83.4 -65.8 -23.9 28.6 -108.8 -155.8 63 Total identified to sectors as assets 1,997.6 1,447.2 1,541.2 1,767.2 2,196.1 1,296.1 1,775.9 2,574.4 2,257.9 2,176.2 2,026.9 1,448.8 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, 2. Excludes corporate equities and mutual fund shares.[001a] 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 1994 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999900 11999911 11999922 11999933 Q4 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 10,712.6 11,181.5 11,720.7 12,351.9 11,720.7 11,804.0 12,001.1 12,145.0 12351.9 12,476.5 12,607.7 By lending sector and instrument 2 US. government 2,498.1 2,776.4 3 080.3 3,336.5 3,080.3 3,140.2 3,201.2 3,247.3 3,336.5 3,387.7 3,395.4 3 Treasury securities 2,465.8 2,757.8 3,061.6 3,309.9 3,061.6 3,120.6 3,180.6 3,222.6 3,309.9 3,361.4 3,368.0 4 Budget agency issues and mortgages 32.4 18.6 18.8 26.6 18.8 19.6 20.6 24.7 26.6 26.3 27.4 5 Private 8,214.5 8,405.1 8,640.4 9,015.4 8,640.4 8,663.9 8,799.9 8,897.8 9,015.4 9,088.8 9,212.3 By instrument 6 Tax-exempt obligations 1,039.9 1,108.6 1,139.7 1,217.0 1,139.7 1,160.7 1,201.5 1,209.2 1,217.0 1,216.8 1,218.4 7 Corporate bonds 1,008.2 1,086.9 1,154.4 1,229.8 1,154.4 1,175.9 1,194.8 1,212.9 1,229.8 1,241.8 1,254.8 8 Mortgages 3,758.5 3,920.0 4,043.9 4,201.0 4,043.9 4,053.9 4,103.6 4,159.9 4,201.0 4,227.3 4,270.0 9 Home mortgages 2,616.3 2,780.0 2,959.6 3,144.9 2,959.6 2,976.0 3,035.0 3,095.5 3,144.9 3,178.2 3,217.5 10 Multifamily residential 307.9 304.8 293.6 287.4 293.6 292.1 289.3 288.0 287.4 286.0 288.4 11 Commercial 755.4 755.8 710.3 687.8 710.3 705.4 698.7 695.6 687.8 682.1 681.8 1? Farm 78.9 79.3 80.4 80.8 80.4 80.5 80.7 80.8 80.8 81.0 82.2 13 Consumer credit 812.4 797.4 803.0 867.3 803.0 787.4 801.1 825.1 867.3 864.9 895.8 14 726.9 686.0 672.1 677.6 672.1 660.9 666.2 666.5 677.6 690.2 713.0 1 *» Commercial paper 116.9 98.5 107.1 117.8 107.1 113.9 124.0 123.2 117.8 129.9 135.7 16 Other loans 751.8 707.8 720.2 704.9 720.2 711.2 708.6 700.9 704.9 718.1 724.6 By borrowing sector 17 Household 3,614.3 3,784.7 4,002.3 4,296.2 4,002.3 4,009.6 4,092.8 4,192.5 4,296.2 44,,333388..77 44,,442200..55 18 Nonfinancial business 3,751.7 3,709.3 3,710.5 3,732.3 3,710.5 3,707.8 3,724.9 3,720.8 3,732.3 3,767.1 3,812.5 19 Farm 135.4 135.0 136.0 138.0 136.0 133.1 136.3 138.4 138.0 136.3 141.7 20 Nonfarm noncorporate 1,147.0 1,116.4 1,074.1 1,048.0 1,074.1 1,066.6 1,059.2 1,051.3 1,048.0 1,051.0 1,057.5 21 Corporate 2,469.2 2,458.0 2,500.4 2,546.3 2,500.4 2,508.1 2,529.3 2,531.1 2,546.3 2,579.8 2,613.4 22 State and local government 848.6 911.1 927.5 987.0 927.5 946.5 982.2 984.5 987.0 983.0 979.2 23 Foreign credit market debt held in United States 285.0 298.8 310.9 357.8 310.9 319.8 332.0 351J 357.8 340.9 341.2 74 Bonds 115.4 129.5 143.9 203.4 143.9 160.6 171.9 193.0 203.4 210.6 213.4 7 Bank loans n.e.c 18.5 21.6 23.9 24.6 23.9 24.3 25.9 26.2 24.6 26.2 25.9 26 Commercial paper 75.3 81.8 77.7 68.7 77.7 72.3 72.1 71.7 68.7 43.3 42.0 27 U.S. government and other loans 75.7 65.9 65.3 61.1 65.3 62.7 62.0 60.3 61.1 60.8 59.9 7.8 Total credit market debt owed by nonfinancial sectors, domestic and foreign 10,997.6 11,4803 12,031.6 12,709.7 12,031.6 12,123.9 12,333.1 12,4963 12,709.7 12,817.4 12,948.9 Financial sectors 79 Ibtal credit market debt owed by financial sectors 2,599.5 2,752.1 3,004.7 3,286.1 3,004.7 3,044.8 3,09X6 3,195.4 3,286.1 3,401.8 3,490.7 By instrument 30 US. government-related 1,418.4 1,564.2 1,720.0 1,877.1 1,720.0 1,755.8 1,774.5 1,842.2 1,877.1 1,952.1 2,016.2 31 Government-sponsored enterprises securities 393.7 402.9 443.1 523.7 443.1 451.2 468.4 510.3 523.7 563.7 600.3 32 Mortgage pool securities 1,019.9 1,156.5 1,272.0 1,348.6 1,272.0 1,299.8 1,301.3 1,327.1 1,348.6 1,388.4 1,415.9 33 Loans from U.S. government 4.9 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 .0 .0 34 Private 1,181.1 1,187.9 1,284.8 1,409.0 1,284.8 1,289.0 1,318.2 1,353.2 1,409.0 1,449.7 1,474.5 35 Corporate bonds 572.4 640.0 724.8 836.9 724.8 748.8 770.8 804.3 836.9 870.5 895.5 36 Mortgages 4.3 4.8 5.4 8.9 5.4 5.7 6.0 7.6 8.9 9.0 9.5 37 69.6 78.4 80.5 66.5 80.5 70.3 73.4 69.2 66.5 60.3 52.0 38 Open market papa 417.7 385.7 394.3 393.5 394.3 379.3 375.9 373.2 393.5 409.4 408.9 39 Loans from Federal Home Loan Banks 117.1 79.1 79.9 103.1 79.9 85.0 92.1 98.9 103.1 100.4 108.5 By borrowing sector 40 Government-sponsored enterprises 398.5 407.7 447.9 528.5 447.9 456.0 473.2 515.1 528.5 556633..77 660000..33 41 Federally related mortgage pools 1,019.9 1,156.5 1,272.0 1,348.6 1,272.0 1,299.8 1,301.3 1,327.1 1,348.6 1,388.4 1,415.9 47 Private financial sectors 1,181.1 1,187.9 1,284.8 1,409.0 1,284.8 1,289.0 1,318.2 1,353.2 1,409.0 1,449.7 1,474.5 43 Commercial banks 76.7 65.0 73.8 79.5 73.8 73.1 76.6 77.9 79.5 79.0 78.0 44 Bank holding companies 114.8 112.3 114.6 123.4 114.6 119.9 120.2 120.3 123.4 124.2 126.3 45 Funding corporations 145.7 139.1 161.6 169.9 161.6 162.2 166.5 166.3 169.9 190.4 190.1 46 Savings institutions 139.1 94.6 87.8 99.0 87.8 90.3 93.4 96.8 99.0 97.6 105.2 47 Credit unions .0 .0 .0 .2 .0 .0 .1 .2 .2 .3 .2 48 Life insurance companies .0 .0 .0 .2 .0 .0 .2 .1 .2 .3 .3 49 Finance companies 374.4 393.0 389.4 384.4 389.4 379.1 369.8 373.9 384.4 395.4 407.6 .50 Mortgage companies 24.6 22.2 30.2 29.2 30.2 23.9 32.0 31.8 29.2 22.3 15.0 51 Real estate investment trusts (REITs) 12.4 13.6 13.9 17.4 13.9 14.0 14.4 15.8 17.4 17.7 18.7 52 Issuers of asset-backed securities (ABSs) 278.1 329.1 391.7 472.2 391.7 407.2 422.3 443.6 472.2 491.3 501.7 53 Ibtal credit market debt, domestic and foreign 13397.1 14,2323 15,0363 15,995.8 15,0363 15,168.7 15,425.7 15,691.7 15,995.8 16,219.2 16,439.6 54 US. government securities 3,911.7 4,335.7 4,795.5 5,208.8 4,795.5 4,891.2 4,970.9 5,084.7 5,208.8 5,339.8 5,411.7 55 Tax-exempt securities 1,039.9 1,108.6 1,139.7 1,217.0 1,139.7 1,160.7 1,201.5 1,209.2 1,217.0 1,216.8 1,218.4 56 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 1,696.0 1,856.5 2,023.1 2,270.1 2,023.1 2,085.2 2,137.4 2,210.2 2,270.1 2,322.9 2,363.7 17 MMoorrttggaaggeess 3,762.9 3,924.8 4,049.3 4,209.9 4,049.3 4,059.7 4,109.6 4,167.5 4,209.9 4,236.3 4,279.5 58 Consumer credit 812.4 797.4 803.0 867.3 803.0 787.4 801.1 825.1 867.3 864.9 895.8 59 Bank loans n.e.c 815.0 785.9 776.6 768.8 776.6 755.4 765.6 761.9 768.8 776.8 790.9 60 Open market paper 609.9 565.9 579.0 580.0 579.0 565.5 572.0 568.2 580.0 582.6 586.5 61 Other loans 949.4 857.5 870.2 873.9 870.2 863.7 867.5 864.9 873.9 879.4 893.1 Digitized for1 F. DRaAtaS inE thRis table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics • January 1995 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1992 1993 1994 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999900 11999911 11999922 11999933 Q4 QL Q2 Q3 Q4 QL Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 13,597.1 14,2323 15,0363 15,995.8 15,0363 15,168.7 15,425.7 15,691.7 15,995.8 16,219.2 16,439.6 2 Private domestic nonfinancial sectors 2,260.8 2,240.2 2,318.0 2,325.8 2,318.0 2,291.7 2,286.9 2,274.4 2,325.8 2,416.3 2,471.0 3 Households 1,499.3 1,446.5 1,523.1 1,502.3 1,523.1 1,493.5 1,466.5 1,451.1 1,502.3 1,598.0 1,655.8 4 Nonfarm noncorporate business 47.8 44.1 42.9 39.7 42.9 42.2 41.4 40.6 39.7 38.8 37.9 5 Nonfinancial corporate business 189.6 196.2 225.4 242.9 225.4 216.0 223.1 230.3 242.9 241.9 254.7 6 State and local governments 524.1 553.3 526.5 540.9 526.5 540.0 555.9 552.4 540.9 537.5 522.6 7 U.S. government 239.0 246.9 235.0 216.6 235.0 229.4 223.1 218.8 216.6 206.3 204.7 8 Foreign 918.3 958.1 1,052.7 1,174.4 1,052.7 1,061.2 1,083.4 1,117.5 1,174.4 1,205.2 1,218.1 9 Financial sectors 10,179.0 10,787.2 11,430.6 12,279.0 11,430.6 11,586.3 11,832.3 12,080.9 12,279.0 12,391.4 12,545.8 10 Government-sponsored enterprises 375.6 390.7 459.7 549.8 459.7 463.0 495.5 530.8 549.8 572.0 598.8 11 Federally related mortgage pools 1,019.9 1,156.5 1,272.0 1,348.6 1,272.0 1,299.8 1,301.3 1,327.1 1,348.6 1,388.4 1,415.9 12 Monetary authority 241.4 272.5 300.4 336.7 300.4 303.6 318.2 324.2 336.7 341.5 351.6 13 Commercial banking 2,772.5 2,853.3 2,948.6 3,090.8 2,948.6 2,956.6 2,998.8 3,036.4 3,090.8 3,120.8 3,159.1 14 U.S. commercial banks 2,466.7 2,502.5 2,571.9 2,721.5 2,571.9 2,589.4 2,628.5 2,670.2 2,721.5 2,743.9 2,782.3 15 Foreign banking offices 270.8 319.2 335.8 326.0 335.8 326.7 327.1 322.3 326.0 332.4 331.6 16 Bank holding companies 13.4 11.9 17.5 17.5 17.5 16.4 18.4 18.7 17.5 18.2 18.3 17 Banks in U.S. affiliated areas 21.6 19.7 23.4 25.8 23.4 24.2 24.8 25.3 25.8 26.4 26.8 18 Funding corporations 35.7 51.5 75.0 93.1 75.0 74.0 74.3 82.4 93.1 97.9 103.8 19 Thrift institutions 1,320.5 1,192.6 1,134.5 1,132.7 1,134.5 1,124.8 1,130.0 1,136.5 1,132.7 1,134.8 1,145.4 20 Life insurance companies 1,116.5 1,199.6 1,278.8 1,383.9 1,278.8 1,316.2 1,343.9 1,372.1 1,383.9 1,403.4 1,426.1 21 Other insurance companies 344.0 376.6 389.4 422.7 389.4 396.3 405.3 414.6 422.7 429.6 437.8 22 Private pension funds 607.4 693.0 730.4 770.6 730.4 759.8 762.6 785.6 770.6 746.2 735.6 23 State and local government retirement funds 433.9 479.9 514.3 542.4 514.3 511.9 524.8 530.9 542.4 553.7 566.1 24 Finance companies 497.6 484.9 486.6 481.3 486.6 473.7 473.5 472.0 481.3 492.8 503.1 25 Mortgage companies 49.2 60.3 60.5 60.4 60.5 47.9 64.1 63.8 60.4 46.6 30.0 26 Mutual funds 360.2 450.5 574.2 738.2 574.2 611.4 659.9 703.6 738.2 720.0 722.9 27 Closed-end funds 35.6 50.3 67.7 77.9 67.7 71.9 74.5 76.0 77.9 80.1 81.0 28 Money market funds 372.7 402.7 404.1 417.0 404.1 404.5 403.9 400.6 417.0 422.2 422.0 29 Real estate investment trusts (REITs) 7.7 7.0 8.1 8.6 8.1 8.1 8.3 8.6 8.6 8.8 9.0 30 Brokers and dealers 106.5 124.0 117.1 126.3 117.1 135.9 149.0 147.1 126.3 112.4 103.8 31 Asset-backed securities issuers (ABSs) 268.9 317.8 377.9 457.0 377.9 393.2 408.1 430.1 457.0 476.0 486.9 32 Bank personal trusts 213.4 223.5 231.5 240.9 231.5 233.7 236.2 238.7 240.9 244.2 247.1 RELATION OF LIABILITIES TO FINANCIAL ASSETS 33 Total credit market debt 13,597.1 14,2323 15,0363 15,995.8 15,0363 15,168.7 15,425.7 15,691.7 15,995.8 16,219.2 16,439.6 Other liabilities 34 Official foreign exchange 61.3 55.4 51.8 53.4 51.8 54.5 53.9 55.6 53.4 56.4 54.9 35 Special drawing rights certificates 10.0 10.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 36 Treasury currency 16.3 16.3 16.5 17.0 16.5 16.6 16.7 16.8 17.0 17.1 17.3 37 Life insurance reserves 380.0 405.7 433.0 468.2 433.0 443.9 452.7 461.9 468.2 473.2 478.2 38 Pension fund reserves 3,484.2 4,138.3 4,516.5 4,981.5 4,516.5 4,658.1 4,739.5 4,898.0 4,981.5 4,908.4 4,926.4 39 Interbank claims 95.3 96.4 132.8 175.9 132.8 137.3 145.0 166.9 175.9 203.5 226.2 40 Deposits at financial institutions 5,005.3 5,044.8 5,059.1 5,141.8 5,059.1 5,055.3 5,097.1 5,088.5 5,141.8 5,157.1 5,180.7 41 Checkable deposits and currency 934.2 1,020.6 1,134.4 1,251.7 1,134.4 1,089.1 1,168.0 1,181.9 1,251.7 1,220.5 1,231.2 42 Small time and savings deposits 2,349.2 2,350.7 2,293.5 2,223.2 2,293.5 2,275.7 2,255.0 2,236.6 2,223.2 2,234.4 2,213.7 43 Large time deposits 546.9 488.4 415.2 391.7 415.2 410.6 401.1 389.4 391.7 382.6 378.9 44 Money market fund shares 498.4 539.6 543.6 559.4 543.6 556.6 549.8 547.9 559.4 582.4 576.4 45 Security repurchase agreements 372.3 355.8 392.3 457.8 392.3 446.2 450.4 472.5 457.8 473.0 512.8 46 Foreign deposits 304.3 289.6 280.1 258.0 280.1 277.1 272.8 260.2 258.0 264.3 267.7 47 Mutual fUnd shares 602.1 813.9 1,042.1 1,429.3 1,042.1 1,134.6 1,225.8 1,342.4 1,429.3 1,439.0 1,443.1 48 Security credit 137.4 188.9 217.3 279.3 217.3 225.0 234.7 254.5 279.3 282.8 273.9 49 Trade debt 942.2 935.9 977.4 1,026.4 977.4 976.9 989.6 1,009.7 1,026.4 11,,002200..99 1,026.9 50 Taxes payable 77.4 71.2 79.6 84.2 79.6 82.9 81.2 82.8 84.2 8888..88 86.1 51 Investment in bank personal trusts 522.1 608.3 629.6 660.9 629.6 639.0 637.6 651.2 660.9 665.7 674.1 52 Miscellaneous 2,820.4 2,992.2 3,160.2 3,424.8 3,160.2 3,176.6 3,258.3 3,325.8 3,424.8 3,516.2 3,525.8 53 Total UabUities 27,751.1 29,609.6 31,360.1 33,746.4 31360.1 31,777.4 32,365.7 33,053.7 33,746.4 34,0563 34,3613 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 22.0 22.3 19.6 20.1 19.6 19.8 20.0 20.3 20.1 20.4 20.8 55 Corporate equities 3,530.2 4,863.6 5,462.9 6,186.5 5,462.9 5,647.3 5,683.7 5,941.7 6,186.5 6,052.2 5,877.7 56 Household equity in noncorporate business 2,529.1 2,444.4 2,411.5 2,427.9 2,411.5 2,420.2 2,434.1 2,445.5 2,427.9 2,459.2 2,477.2 Floats not included in assets (—) 57 U.S. government checkable deposits 15.0 3.8 6.8 5.6 6.8 3.4 3.5 2.2 5.6 .3 .9 58 Other checkable deposits 35.9 40.4 42.0 40.7 42.0 36.7 41.6 33.7 40.7 36.3 38.7 59 Trade credit -130.3 -129.3 -124.6 -106.9 -124.6 -135.0 -139.2 -134.8 -106.9 -113.1 -120.1 Liabilities not identified as assets (—) 60 Treasury currency -4.1 -4.8 -4.9 -5.1 -4.9 -5.0 -5.0 -5.1 -5.1 -5.2 -5.2 61 Interbank claims -32.0 -4.2 -9.3 -4.7 -9.3 -5.8 -5.7 -7.8 -4.7 -7.4 -7.2 62 Security repurchase agreements 3.0 9.2 38.1 122.7 38.1 94.9 108.0 132.6 122.7 136.7 166.7 63 Taxes payable 17.8 17.8 25.2 33.3 25.2 14.1 23.3 22.5 33.3 26.6 22.1 64 Miscellaneous -261.2 -330.7 -398.4 -479.8 -398.4 -437.1 -433.7 -478.9 -479.8 -505.1 -482.9 65 Total identified to sectors as assets 34,188-3 37,337.6 39,679.1 42,775.1 39,679.1 40,298.4 40,910.8 41,896.7 42,775.1 43,019.1 43,123.8 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, 2. Excludes corporate equities and mutual fund shares, 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 1994 MMeeaassuurree 11999911 11999922 11999933 Feb. Mar. Apr. May June July Aug. Sept." Oct. 1 Industrial production1 104.1 106.5 110.9 115.0 115.9 116.0 116.6 117.5 117.8r 118.7 118.6 119.4 Market groupings 2 Products, total 103.2 105.7 110.2 114.2 114.7 114.7 115.3 116.1 116.7 111177..33"" 111177..00 111177..55 3 Final, total 105.3 108.0 112.7 117.2 117.5 117.3 117.8 118.7 119.3r 120.1" 119.8 120.3 102.8 105.7 108.7 111.6 111.9 111.2 111.7 112.7 113.2 113.5" 112.6 112.8 5 Equipment 108.9 111.2 118.5 125.3 125.7 126.2 126.6 127.5 128.0" 129.6" 130.2 131.1 6 Intermediate 96.8 99.0 102.6 105.1 105.9 106.7 107.5 108.3 108.9" 109.0" 108.4 109.0 7 Materials 105.4 107.7 111.9 116.2 117.7 117.9 118.6 119.4 119.4" 120.8" 121.0 122.2 Industry groupings 8 Manufacturing 103.7 106.8 111.7 116.1 111177..22 117.7 111188..55 111188..99 111199..55 112200..77 112200..66 112211..77 9 Capacity utilization, manufacturing (percent)2.. 77.8 78.6 80.6 82.4 83.0 83.1 83.4 83.5 83.7 84.3 84.1 84.6 10 Construction contracts3 89.7 97.7 103.3r 107.0 110.0 103.0 108.0 105.0 109.0 110.0 109.0 107.0 11 Nonagricultural employment, total4 106.2 106.4 108.1 109.8 110.1 110.5 110.8 111.2 111.4 111.7 112.0 112.2 12 Goods-producing, total 96.6 94.9 93.1 94.5 94.8 95.3 95.3 95.6 95.6 95.8 95.9 96.1 13 Manufacturing, total 97.1 95.8 93.7 94.6 94.6 94.8 94.8 95.0 95.0 95.2 95.2 95.4 14 Manufacturing, production workers 96.0 94.5 93.7 95.3 95.4 95.7 95.7 96.0 96.0 96.3 96.4 96.7 15 Service-producing 109.4 110.5 112.8 114.6 115.0 115.4 115.7 116.1 116.5 116.8 117.1 117.3 16 Personal income, total 127.8 135.6 141.4 146.7 147.5 148.3 149.0 149.3 150.0 150.6 151.4 n.a. 17 Wages and salary disbursements 124.5 131.6 136.2 141.8 142.4 143.3 144.3 144.5 145.2 145.4" 146.2 n.a. 18 Manufacturing 113.7 118.0 120.0 124.6 124.8 124.8 124.9 125.3 125.6 126.0" 126.5 n.a. 19 Disposable personal income 128.8 137.0 142.5 147.5 148.4 148.2 149.8 150.1 150.8 151.4" 152.3 n.a. 20 Retail sales5 121.1 126.9 135.2 141.9 144.5 143.1 143.0 144.3 144.5 146.6" 147.4 149.1 Prices6 21 Consumer (1982-84= 100) 136.2 140.3 144.5 146.7 147.2 147.4 147.5 148.0 148.4 149.0 149.4 114499..55 22 Producer finished goods (1982=100) 121.7 123.2 124.7 124.8 124.9 125.0 125.3 125.6r 126.0 126.6 125.5 125.8 1. Data in this table also appear in the Board's G.17 (419) monthly statistica lrelease. covers employees only, excluding personnel in the armed forces. For the ordering address, see the inside front cover. The latest historical revision of the 5. Based on data from U.S. Department of Commerce, Survey of Current Business. industrial production index and the capacity utilization rates was released in February 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the 1994. See "Industrial Production and Capacity Utilization since 1990: A Revision," price indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Federal Reserve Bulletin, vol. 80 (March 1994), pp. 220-26. For a detailed description of Statistics, Monthly Labor Review. the industrial production index, see "Industrial Production: 1989 Developments and NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. series mentioned in notes 3 and 6, can also be found in the Survey of Current Business. 2. Ratio of index of production to index of capacity. Based on data from the Federal Figures for industrial production for the latest month are preliminary, and many figures Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources. for the three months preceding the latest month have been revised. See "Recent Develop- 3. Index of dollar value of total construction contracts, including residential, nonresi- ments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June dential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. 1990), pp. 411-35. See also "Industrial Production Capacity and Capacity Utilization Dodge Division. since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605. 4. Based on data from U.S. Department of Labor, Employment and Earnings. Series 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted except as noted 1994 CCaatteeggoorryy 11999911 11999922 11999933 Mar. Apr. May June July Aug." Sept." Oct. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 125,303 126,982 128,040 130,580 130,747 130,774 130,248 130,457 131,189 131,343 131,836 2 Nonagricultural industries3 114,644 114,391 116,232 118,611 118,880 119,437 119,195 119,173 119,722 120,219 120,741 3 Agriculture 3,233 3,207 3,074 3,426 3,459 3,435 3,235 3,278 3,444 3,409 3,495 Unemployment 4 Number 8,426 9,384 8,734 8,543 8,408 7,902 7,817 88,,000055 88,,002233 77,,771155 77,,660000 5 Rate (percent of civilian labor force) 6.7 7.4 6.8 6.5 6.4 6.0 6.0 6.1 6.1 5.9 5.8 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 108,256 108^19 110,171 112^98 112,699 112,951 113,334 113,624 113,914 114,162 114,356 18,455 18,192 17,804 17,980 18,007 18,009 18,044 18,045 18,095 18,093 18,133 689 631 599 609 606 603 605 601 603 602 598 9 Contract construction 4,650 4,471 4,571 4,806 4,893 4,907 4,927 4,944 4,942 4,970 4,975 10 Transportation and public utilities 5,762 5,709 5,710 5,816 5,759 5,843 5,849 5,857 5,866 5,868 5,869 11 Trade 25,365 25,391 25,849 26,039 26,165 26,190 26,328 26,439 26,484 26,565 26,627 6,646 6,571 6,605 6,781 6,791 6,787 6,798 6,797 6,801 6,789 6,787 28,336 29,053 30,193 31,326 31,497 31,598 31,765 31,918 32,036 32,129 32,225 14 Government 18,402 18,653 18,841 18,941 18,981 19,014 19,018 19,023 19,087 19,146 19,142 1. Beginning January 1994, reflects redesign of current population survey and popula- 4. Includes all full- and part-time employees who worked during, or received pay for, tion controls from the 1990 census. the pay period that includes the twelfth day of the month; excludes proprietors, self- 2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly employed persons, household and unpaid family workers, and members of the armed figures are based on sample data collected during the calendar week that contains the forces. Data are adjusted to the March 1992 benchmark, and only seasonally adjusted data twelfth day; annual data are averages of monthly figures. By definition, seasonality does are available at this time. not exist in population figures. SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings. 3. Includes self-employed, unpaid family, and domestic service workers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • January 1995 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1993 1994 1993 1994 1993 1994 SSeerriieess Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2r Q3r Output (1987 = 100) Capacity (percent of 1987 output) Capacity utilization rate (percent)2 1 Total industry 112.9 115.2 116.7 118.4 137.2 138.0 139.0 140.0 82-3 83.4 84.0 84.6 2 Manufacturing 114.1 116.3 118.3 120.3 140.0 140.9 142.0 143.1 81.5 82.5 83.3 84.0 3 Primary processing3 109.9 110.7 113.2 114.3 128.6 129.0 129.5 129.9 85.5 85.8 87.4 88.0 4 Advanced processing 116.1 118.9 120.8 123.1 145.4 146.6 148.0 149.4 79.9 81.2 81.6 82.4 5 Durable goods 118.1 121.0 122.9 125.6 146.3 147.6 149.1 150.6 80.7 82.0 82.5 83.4 6 Lumber and products 104.9 103.6 105.2 106.0 115.2 115.4 115.7 115.9 91.1 89.8 90.9 91.5 7 Primary metals 109.6 109.7 113.9 111.9 122.6 122.4 122.4 122.4 89.4 89.6 93.0 91.4 8 Iron and steel 115.6 114.8 121.3 116.0 126.3 126.0 126.0 126.0 91.5 91.1 96.3 92.1 9 Nonferrous 101.4 102.7 103.7 106.2 117.6 117.5 117.5 117.5 86.2 87.4 88.3 90.4 10 Industrial machinery and equipment 152.7 158.8 164.7 170.4 178.2 181.7 186.2 190.8 85.7 87.4 88.4 89.3 11 Electrical machinery 132.6 136.4 142.0 149.9 157.7 160.3 163.3 166.3 84.1 85.1 87.0 90.2 12 Motor vehicles and parts 131.7 142.7 134.3 135.4 156.1 157.8 159.7 161.7 84.4 90.5 84.1 83.7 13 Aerospace and miscellaneous transportation equipment 85.2 82.5 82.1 80.5 132.8 132.2 131.4 130.6 64.2 62.4 62.5 61.6 14 Nondurable goods 109.2 110.5 112.7 113.8 132.1 132.7 133.4 134.0 82.6 83.2 84.5 84.9 15 Textile mill products 107.7 108.9 111.6 112.2 119.9 120.5 121.2 121.8 89.8 90.3 92.2 92.1 16 Paper and products 114.2 114.4 115.4 117.3 125.3 125.8 126.3 126.8 91.2 90.9 91.4 92.5 17 Chemicals and products 118.6 120.3 122.7 124.8 146.8 147.7 148.7 149.7 80.8 81.5 82.5 83.4 18 Plastics materials 114.4 117.6 121.3 132.0 133.0 133.9 86.6 88.4 90.6 19 Petroleum products 107.7 104.5 108.0 105.9 115.6 115.4 115.3 115.2 93.2 90.5 93.7 92.0 20 Mining 97.3 98.4 99.6 98.4 110.8 110.6 110.6 110.5 87.8 89.0 90.1 89.0 21 Utilities 115.6 119.9 116.7 118.2 134.3 134.7 135.2 135.6 86.1 89.0 86.3 87.2 22 Electric 114.8 118.2 117.6 118.8 131.7 132.2 132.8 133.3 87.2 89.4 88.6 89.1 1973 1975 Previous cycle5 Latest cycle6 1993 1994 High Low High Low High Low Oct. May June Julyr Aug/ Sept/ Oct.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.8 84.8 78.1 81.7 83.9 84.3 84.4 84.8 84.5 84.9 2 Manufacturing 88.9 70.8 87.3 70.0 85.1 76.7 80.8 83.4 83.5 83.7 84.3 84.1 84.6 3 Primary processing3 92.2 68.9 89.7 66.8 89.1 78.0 84.4 87.9 87.5 87.5 88.3 88.1 88.9 4 Advanced processing4 87.5 72.0 86.3 71.4 83.3 76.0 79.3 81.5 81.8 82.1 82.7 82.4 82.8 5 Durable goods 88.8 68.5 86.9 65.0 83.9 73.8 79.6 82.4 82.5 82.8 83.7 83.7 84.3 6 Lumber and products 90.1 62.2 87.6 60.9 93.3 76.2 90.9 91.5 91.5 91.5 91.4 91.5 91.3 7 Primary metals 100.6 66.2 102.4 46.8 92.9 74.4 86.5 94.3 91.4 90.6 90.9 92.8 94.9 8 Iron and steel 105.8 66.6 110.4 38.3 95.7 72.2 89.6 97.7 94.1 92.4 90.0 93.8 97.0 9 Nonferrous 92.9 61.3 90.5 62.2 88.9 75.8 81.8 89.1 87.3 87.9 92.3 91.2 91.8 10 Industrial machinery and equipment 96.4 74.5 92.1 64.9 83.7 71.4 84.7 88.6 88.6 89.1 89.4 89.4 89.8 11 Electrical machinery 87.8 63.8 89.4 71.1 84.9 77.3 83.6 86.9 87.7 89.5 90.3 90.7 91.8 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 84.5 57.3 79.7 82.9 82.8 80.6 86.1 84.4 84.8 13 Aerospace and miscellaneous transpcxtahon equipment 77.0 66.6 81.1 66.9 88.3 78.5 64.3 62.5 62.8 62.0 61.6 61.1 61.2 14 Nondurable goods 87.9 71.8 87.0 76.9 86.8 80.4 82.5 84.8 84.8 84.9 85.1 84.6 85.0 15 Textile mill products 92.0 60.4 91.7 73.8 92.1 78.5 90.0 92.5 91.8 92.1 93.0 91.3 92.3 16 Paper and products 96.9 69.0 94.2 82.0 94.9 86.3 90.1 91.9 92.8 91.3 93.9 92.3 91.8 17 Chemicals and products 87.9 69.9 85.1 70.1 85.9 79.4 80.4 83.0 82.9 83.1 83.9 83.2 84.0 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 75.3 84.4 91.7 91.4 90.6 91.0 19 Petroleum products 96.7 81.1 89.5 68.2 88.5 84.5 93.6 94.5 92.1 91.0 92.5 92.4 93.2 20 Mining 94.4 88.4 96.6 80.6 87.0 86.8 88.4 89.6 90.2 89.3 88.9 88.9 88.7 21 Utilities 95.6 82.5 88.3 76.2 92.6 83.1 85.6 84.9 89.3 88.0 87.1 86.4 85.8 22 Electric 99.0 82.7 88.3 78.7 94.8 86.3 86.5 87.0 91.4 90.2 88.9 88.1 87.4 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. 3. Primary processing includes textiles; lumber; paper; industrial chemicals; petroleum For the ordering address, see the inside front cover. The latest historical revision of the refining; rubber and plastics; stone, clay, and glass; and primary and fabricated metals. industrial production index and the capacity utilization rates was released in February 4. Advanced processing includes food, tobacco, apparel, furniture, printing, chemical 1994. See "Industrial Production and Capacity Utilization since 1990: A Revision," products such as drugs and toiletries, leather and products, machinery, transportation Federal Reserve Bulletin, vol. 80 (March 1994), pp. 220-26. For a detailed description of equipment, instruments, miscellaneous manufacturing, and ordnance. the industrial production index, see "Industrial Production: 1989 Developments and 5. Monthly highs, 1978-80; monthly lows, 1982. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. 6. Monthly highs, 1988-89; monthly lows, 1990-91. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted index of industrial production to the corresponding index of capacity. 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 1993 1994 1993 GGrroouupp por- aavvgg.. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June JJuull// Aug/ Sept/ OOcctt..pp Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 110.9 111.9 112.8 114.0 114.6 115.0 115.9 116.0 116.6 117.5 117.8 118.7 118.6 119.4 7 59.5 110.2 111.2 112.1 113.0 113.6 114.2 114.7 114.7 115.3 116.1 116.7 117.3 117.0 117.5 Final products 44.8 112.7 113.8 114.6 115.4 116.2 117.2 117.5 117.3 117.8 118.7 119.3 120.1 119.8 120.3 4 Consumer goods, total 26.5 108.7 109.2 109.7 110.1 110.9 111.6 111.9 111.2 111.7 112.7 113.2 113.5 112.6 112.8 5 Durable consumer goods 5.8 110.5 112.7 115.8 118.2 119.0 120.9 118.3 117.4 115.5 116.5 117.4 120.5 118.5 118.7 6 Automotive products 2.7 111.6 113.8 120.2 124.9 127.7 131.7 125.3 123.3 119.2 120.2 118.5 124.1 121.7 122.3 7 1.7 112.2 114.9 124.9 131.5 134.6 141.0 131.1 128.6 121.4 121.9 118.3 130.0 126.2 125.8 8 Autos, consumer 1.1 86.1 85.2 95.4 98.8 102.0 106.7 101.0 98.3 92.4 91.5 88.4 93.6 92.1 94.9 9 Trucks, consumer .6 157.3 166.4 176.0 188.0 191.0 200.4 183.3 181.2 171.6 174.4 170.1 193.0 185.4 179.4 10 Auto parts and allied goods 1.0 110.6 U1.9 112.3 113.9 116.3 116.2 115.4 114.3 115.6 117.5 118.9 114.1 114.1 116.4 11 Other 3.1 109.5 111.8 112.0 112.2 111.3 111.5 112.1 112.2 112.3 113.3 116.5 117.3 115.6 115.6 1?. Appliances televisions and air conditioners .8 122.9 130.4 130.7 130.5 123.7 123.4 125.6 122.8 125.5 126.9 132.2 135.6 113311..11 112288..77 N Carpeting and furniture .9 102.2 104.1 102.5 102.8 104.0 105.5 104.5 106.9 105.6 105.6 110.0 110.7 109.4 110.7 14 Miscellaneous home goods 1.4 106.7 106.3 107.5 108.0 109.1 108.6 109.4 109.5 109.2 110.5 111.8 111.3 110.9 111.4 11 Nondurable consumer goods 20.7 108.2 108.2 107.9 107.9 108.6 109.0 110.1 109.4 110.6 111.6 112.0 111.5 110.9 111.1 16 9.1 106.1 105.9 105.2 105.8 106.1 106.9 109.0 109.3 110.0 110.0 110.7 109.7 109.2 109.4 17 Clothing 2.6 122.5 93.3 94.3 95.1 93.8 94.4 95.8 96.5 97.6 97.3 97.7 97.1 96.7 97.3 18 Chemical products 3.6 122.5 122.6 122.3 122.0 121.6 123.3 125.4 123.7 125.8 127.8 128.6 129.8 128.9 130.4 19 Paper products 2.6 103.2 104.0 103.3 102.6 102.6 102.3 102.5 103.6 104.5 104.9 103.5 104.8 104.6 103.3 70 2.7 113.7 114.6 115.2 113.1 119.7 117.1 114.4 108.4 110.8 115.8 116.1 113.0 112.0 112.0 71 .8 106.6 111.3 110.6 108.6 105.1 104.3 105.3 107.7 108.2 106.4 104.2 105.9 106.3 108.4 22 Residential utilities 2.0 116.5 115.9 117.0 114.9 125.4 122.1 117.9 108.7 111.8 119.4 120.8 115.8 114.2 113.4 ?3 18.3 118.5 120.4 121.8 123.1 123.9 125.3 125.7 126.2 126.6 127.5 128.0 129.6 130.2 131.1 ?4 Business equipment 13.2 134.6 137.7 139.7 141.8 142.9 145.0 145.5 146.3 147.3 148.5 149.6 152.1 152.9 154.3 75 Information processing and related 5.5 155.8 162.0 164.5 167.2 170.1 173.5 175.2 175.6 177.1 179.0 181.3 184.4 186.3 188.5 7,6 Computer and office equipment 2.3 223.1 241.8 248.6 256.1 261.5 269.5 272.1 273.4 274.2 278.6 282.7 286.2 290.2 293.7 77 3.9 112.2 112.5 113.0 114.8 114.0 114.6 116.8 118.1 119.8 120.7 122.6 123.2 124.0 125.4 78 Transit 2.0 136.7 136.1 141.5 142.8 145.2 147.5 141.2 139.8 136.1 137.2 132.8 138.7 136.6 137.2 79 Autos and trucks 1.0 134.5 139.6 150.5 154.9 161.0 166.7 156.1 153.7 146.0 147.3 143.4 156.9 153.4 153.3 30 Other 1.8 115.6 119.4 119.3 120.8 119.4 120.7 121.4 124.5 127.3 127.6 129.3 129.9 130.8 130.8 31 Defense and space equipment 4.4 74.8 72.7 72.5 71.5 71.0 69.9 69.9 69.8 68.9 68.6 67.9 67.6 67.2 67.0 37 Oil and gas well drilling .6 82.5 86.5 82.9 82.3 82.4 87.4 88.6 89.6 89.1 88.9 87.4 83.4 85.5 82.8 33 Manufactured homes .2 118.9 123.4 130.4 141.1 145.3 139.7 143.6 136.2 135.9 138.1 135.7 135.5 141.7 34 Intermediate products, total 14.7 102.6 103.5 104.3 105.4 105.7 105.1 105.9 106.7 107.5 108.3 108.9 109.0 108.4 109.0 35 Construction supplies 5.9 96.8 98.6 99.5 101.3 100.5 98.9 99.7 101.8 102.9 102.7 103.8 104.4 104.0 104.4 36 Business supplies 8.8 106.5 106.7 107.5 108.1 109.2 109.3 110.0 109.9 110.6 112.0 112.3 112.0 111.3 112.2 37 40.5 111.9 112.8 113.9 115.5 116.0 116.2 117.7 117.9 118.6 119.4 119.4 120.8 121.0 122.2 38 20.5 115.5 117.5 119.1 121.5 122.2 121.9 124.1 125.2 125.9 126.3 127.3 128.8 129.8 131.9 39 Durable consumer parts 4.1 113.9 116.0 120.4 125.7 126.7 126.0 127.3 125.9 125.8 125.2 126.3 129.0 129.4 131.7 40 Equipment parts 7.4 123.4 127.0 127.5 128.6 130.7 131.6 133.9 135.9 136.9 138.8 140.4 142.2 143.7 146.1 41 Other 9.0 109.7 110.3 111.6 113.6 113.2 112.0 114.6 116.1 116.9 116.5 117.0 117.8 118.4 120.1 47 3.1 112.5 112.9 114.7 117.6 116.2 113.1 115.3 119.4 119.0 117.7 116.8 115.8 117.1 119.9 43 Nondurable goods materials 9.0 113.8 114.1 115.3 116.6 115.4 116.2 117.7 117.0 119.1 118.9 119.1 120.7 120.2 121.2 44 Textile materials 1.2 104.2 104.0 103.7 102.1 103.2 104.4 106.2 106.4 106.3 106.4 106.2 108.5 107.6 108.5 45 Paper materials 2.0 113.7 113.2 115.2 115.2 114.0 116.1 117.6 113.8 117.8 119.4 116.7 120.8 119.9 118.9 46 Chemical materials 3.8 116.9 117.2 119.1 119.9 119.7 120.4 121.6 122.2 125.3 123.1 123.6 125.3 124.5 126.5 47 Other 2.0 113.8 115.1 114.9 120.2 115.6 115.1 116.8 116.2 116.3 117.6 120.6 119.1 119.8 120.8 48 Energy materials 11.0 103.7 103.0 103.1 103.2 104.8 105.6 105.6 105.2 104.6 106.9 104.8 105.6 105.2 105.0 49 Primary energy 7.3 99.1 98.2 97.6 97.5 97.3 100.2 101.1 101.4 100.4 100.5 99.9 100.5 99.8 99.6 50 Converted fuel materials 3.7 112.7 112.6 113.8 114.5 119.6 116.1 114.4 112.5 112.6 119.4 114.6 115.7 115.8 115.5 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.2 110.6 111.5 112.2 113.2 113.7 114.0 115.2 115.4 116.2 117.1 117.5 118.1 118.1 118.9 52 Total excluding motor vehicles and parts 95.2 110.4 111.3 111.8 112.7 113.2 113.4 114.7 114.9 115.8 116.7 117.2 117.7 117.7 118.5 53 Total excluding computer and office equipment 97.7 108.2 108.8 109.6 110.6 111.1 111.3 112.1 112.2 112.9 111133..66 111133..99 111144..77 111144..55 111155..22 54 Consumer goods excluding autos and trucks . 24.8 108.5 108.8 108.6 108.7 109.3 109.6 110.6 109.9 111.1 112.1 112.9 112.3 111.6 111.9 55 Consumer goods excluding energy 23.8 108.2 108.6 109.0 109.8 109.9 111.0 111.6 111.5 111.8 112.3 112.9 113.5 112.6 112.9 56 Business equipment excluding autos and trucks 12.2 134.6 137.5 138.7 140.6 141.3 143.2 144.6 145.7 147.4 114488..66 115500..11 115511..77 115522..88 115544..44 57 Business equipment excluding computer and office equipment 11.3 119.7 120.2 121.3 122.5 123.0 124.1 124.3 112244..99 125.9 112266..66 112277..22 112299..55 112299..88 113300..99 58 Materials excluding energy 29.5 115.0 116.5 118.0 120.0 120.1 120.1 122.1 122.7 123.8 124.0 124.8 126.4 126.9 128.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • January 1995 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1987 1993 1994 rroouupp MOILP coce pprroo-- 1993 por- aavvgg.. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Jul/ Aug/ Sept/ Oct.p Index (1987 = 100) MAJOR INDUSTRIES 59 Total index 100.0 110.9 111.9 112.8 114.0 114.6 115.0 115.9 116.0 116.6 117.5 117.8 118.7 118.6 119.4 60 Manufacturing 84.3 111.7 112.9 114.0 115.4 115.6 116.1 117.2 117.7 118.5 118.9 119.5 120.7 120.6 121.7 61 Primary processing 27.1 107.6 108.5 109.9 111.3 110.7 110.0 111.4 112.3 113.8 113.4 113.5 114.7 114.6 115.8 62 Advanced processing 57.1 113.7 115.0 116.0 117.4 117.9 119.0 119.9 120.2 120.7 121.5 122.3 123.5 123.5 124.5 63 Durable goods 46.5 114.3 116.2 118.0 120.1 120.4 120.9 121.7 122.5 122.9 123.4 124.2 126.0 126.4 127.8 64 Lumber and products... ' 24 2.1 100.6 104.6 104.9 105.2 105.2 102.8 102.9 103.8 105.8 105.9 106.0 106.0 106.1 106.0 65 Furniture and fixtures... 25 1.5 103.3 104.8 104.2 106.3 105.4 107.4 107.6 109.5 109.9 110.6 112.4 113.7 113.5 114.3 66 Stone, clay, and glass products 32 2.4 98.7 99.7 100.5 104.6 101.1 100.0 101.7 102.7 104.1 103.2 102.7 103.6 103.8 104.5 67 Primary metals 33 3.3 106.5 106.1 109.8 113.0 110.5 107.6 111.1 114.4 115.4 111.9 110.9 111.3 113.5 116.2 68 hoi and steel 331,2 1.9 111.6 113.3 114.4 119.1 115.8 111.5 117.2 122.2 123.2 118.6 116.5 113.4 118.2 122.2 69 Raw steel .1 105.7 107.2 106.2 110.9 102.0 105.8 106.0 105.3 105.7 106.3 104.7 107.0 109.9 70 Nonferrous 333-6,9 1.4 99.5 96.2 103.5 104.5 103.3 102.1 102.6 103.8 104.7 102.6 103.2 108.4 110077..11 1100XX99 71 Fabricated metal products 34 5.4 99.5 100.7 102.1 102.6 103.9 103.0 104.1 105.0 105.1 106.4 107.8 108.3 108.7 109.8 72 Industrial and commercial machinery and computer equipment 35 8.5 144.1 150.3 152.0 155.7 156.3 158.8 161.4 162.8 165.0 166.3 168.6 170.5 172.0 173.9 73 Computer and office equipment 357 2.3 223.1 241.8 248.6 256.1 261.5 269.5 272.1 273.4 274.2 278.6 282.7 286.2 290.2 293.7 74 Electrical machinery ... 36 6.9 127.5 131.4 132.1 134.3 134.8 136.1 138.3 140.2 141.9 144.1 147.9 150.2 151.7 154.5 75 Transportation equipment 37 9.9 104.2 104.2 108.3 110.7 111.9 113.0 110.1 108.8 106.5 106.7 104.8 109.0 107.5 108.0 76 Motor vehicles and parts 371 4.8 120.7 124.1 132.4 138.5 142.1 146.1 139.9 137.5 132.5 132.8 129.9 139.3 137.1 138.2 77 Autos and light trucks 2.5 2.5 118.4 120.8 131.7 138.4 141.8 148.5 138.4 135.7 127.9 128.3 124.4 136.3 132.5 132.5 78 Aerospace and miscellaneous transportation equipment 372-6,9 5.1 88.7 85.5 85.7 84.5 83.4 82.0 82.1 81.9 82.2 82.3 81.2 80.5 79.6 79.6 79 Instruments 38 5.1 104.0 102.7 102.4 102.3 103.7 104.1 104.4 104.5 104.5 104.6 105.3 105.8 106.1 106.5 80 Miscellaneous 39 1.3 109.3 109.6 110.1 110.3 110.7 109.9 111.1 112.1 111.8 111.7 115.0 113.6 113.1 113.9 81 Nondurable goods 37.8 108.7 108.8 109.1 109.7 109.6 110.1 111.7 111.8 113.1 113.3 113.6 114.1 113.5 114.3 82 Foods 20 8.8 108.6 109.0 108.4 109.0 109.2 110.1 112.2 111.8 112.3 112.1 113.4 111.9 111.4 111.2 83 Tobacco products 21 1.0 91.0 86.4 83.3 84.3 88.2 86.7 89.4 94.1 97.4 96.8 95.0 98.2 98.6 101.5 84 Textile mill products ... 22 1.8 107.8 107.7 108.0 107.4 107.8 108.7 110.1 111.5 112.1 111.4 112.0 113.3 111.4 112.8 85 Apparel products 23 2.3 93.1 92.1 92.6 93.1 92.4 92.9 94.2 94.6 95.3 95.7 96.1 95.7 95.6 95.8 86 Paper and products .... 26 3.6 112.3 112.7 114.5 115.5 113.5 114.9 114.8 112.8 116.0 117.4 115.6 119.1 117.2 116.7 87 Printing and publishing . 27 6.5 101.3 101.6 101.7 101.9 101.7 102.3 103.6 103.9 104.4 105.5 105.3 105.2 104.9 105.4 88 Chemicals and products. 28 8.8 117.8 117.8 118.8 119.3 119.3 119.9 121.7 121.2 123.3 123.6 124.2 125.5 124.8 126.3 89 Petroleum products .... 29 1.3 104.9 108.2 107.8 107.1 104.8 104.5 104.1 108.9 109.0 106.2 104.9 106.6 106.4 107.3 90 Rubber and plastic products 30 3.2 115.9 116.5 117.8 119.3 120.3 119.7 122.5 123.0 124.6 124.9 126.6 126.8 126.9 129.2 91 Leather and products ... 31 .3 85.0 83.9 83.5 85.1 84.8 83.1 85.1 86.0 84.3 83.2 83.6 83.8 83.5 84.0 92 Mining 8.0 97.3 98.0 96.9 96.9 97.0 98.8 99.5 99.9 99.1 99.8 98.7 98.3 98.2 98.1 93 Metal 10 .3 167.6 175.8 168.5 177.3 177.8 167.4 167.3 171.3 160.3 169.8 169.8 158.8 160.4 162.2 94 Coal 12 1.2 103.8 104.4 101.1 104.7 104.0 114.4 120.4 119.8 113.2 115.0 108.6 111.4 110.7 111.3 95 Oil and gas extraction .... 13 5.8 92.2 92.6 91.8 90.9 91.0 91.8 91.5 91.9 92.6 92.8 92.5 92.2 92.1 91.5 96 Stone and earth minerals.. 14 .7 93.8 94.1 98.2 93.9 94.9 97.1 96.3 96.9 99.3 97.6 99.2 97.1 97.3 98.3 97 Utilities 7.7 116.2 114.9 116.1 115.8 121.9 119.8 118.0 114.4 114.7 120.8 119.2 118.1 117.3 116.7 98 Electric 491,3PT 6.1 115.9 113.7 115.2 115.5 119.1 118.1 117.4 115.8 115.5 121.5 120.1 118.5 117.6 116.9 99 Gas 492.3PT 1.6 117.2 119.1 119.4 117.0 132.6 126.4 120.1 109.4 111.9 118.1 115.9 116.5 116.0 115.8 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 79.5 111.2 112.2 112.9 114.0 114.0 114.3 115.8 116.5 117.6 118.0 118.9 119.6 119.7 120.7 101 Manufacturing excluding office and computing machines 81.9 108.6 109.2 110.2 111.4 111.4 111.7 112.8 113.2 114.0 114.3 114.8 116.0 115.8 116.8 Gross value (billions of 1987 dollars, annual rates) MAJOR MARKETS 102 Products, total 1,707.0 1,886.9 1,908.8 1,928.2 1,943.9 1,955.4 1,964.1 1,962.6 1,965.5 1,969.4 1,980.7 1,982.7 2,001.7 1,990.8 2,000.5 103 Final 1,314.6 1,480.7 1,498.9 1,514.9 1,525.7 1,535.0 1,547.9 1,544.5 1,541.1 1,542.9 1,551.6 1,551.8 1,569.9 1,561.7 1,569.1 104 Consumer goods 866.6 944.1 953.1 960.2 963.7 968.7 974.0 972.4 967.4 969.5 975.0 974.4 982.5 972.0 975.4 105 Equipment 448.0 536.7 545.7 554.7 561.9 566.3 573.9 572.0 573.7 573.4 576.6 577.4 587.4 589.7 593.7 106 Intermediate 392.5 406.1 410.0 413.3 418.2 420.4 416.2 418.2 424.5 426.5 429.1 431.0 431.8 429.0 431.3 1. Data in this table also appear in the Board's G. 17 (419) monthly statistical release. Federal Reserve Bulletin, vol. 80 (March 1994), pp. 220-26. For a detailed description of For the ordering address, see the inside front cover. The latest historical revision of the the industrial production index, see "Industrial Production: 1989 Developments and industrial production index and the capacity utilization rates was released in February Historical Revision," Federal Reserve Bulletin, vol. 76, (April 1990), pp. 187-204. 1994. See "Industrial Production and Capacity Utilization since 1990: A Revision," 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 Dec. Jan. Feb. Mar. Apr. May June Jul/ Aug/ Sept. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 949 1,095 1,199 1,474 1,312 1,252 1,313 1,380 1,357 1,316 1,337 1,354 1,425 7 One-family 754 911 986 1,181 1,071 1,054 1,068 1,069 1,083 1,046 1,034 1,046 1,052 3 Two-family or more 195 184 213 293 241 198 245 311 274 270 303 308 373 4 Started 1,014 1,200 1,288 1,612 1,271 1,328 1,519 1,471 1,491 1,358 1,439 1,463 1,497 One-family 840 1,030 1,126 1,383 1,125 1,121 1,271 1,211 1,200 1,163 1,219 1,176 1,228 6 Two-family or more 174 169 162 229 146 207 248 260 291 195 220 287 269 7 Under construction at end of period' 606 612 680 713 716 720 732 740 748 751 758 770 779 8 One-family 434 473 543 574 577 578 585 585 582 584 585 588 594 9 Two-or-more-family 173 140 137 139 139 142 147 155 166 167 173 182 185 10 1,091 1,158 1,193 1,289 1,216 1,334 1,273 1,354 1,446 1,329 1,282 1,337 1,402 11 One-family 838 964 1,040 1,139 1,075 1,185 1,115 1,192 1,257 1,151 1,160 1,144 1,166 1? Two-or-more-family 253 194 153 150 141 149 158 162 189 178 122 193 236 13 Mobile homes shipped 171 210 254 308 316 301 308 290 292 292 286 288 301 Merchant builder activity in one-family units 14 Number sold 507 610 666 817 642 697 722 673 692 628r 635 668855 770033 15 Number for sale at end of period 284 266 294 294 296 298 298 298 301 313r 315 320 326 Price of units sold (thousands of dollars)2 16 120.0 121.3 126.1 125.0 126.0 129.9 132.3 129.0 129.9 133.5r 112255..00 113333..00 112299..66 17 Average 147.0 144.9 147.6 146.4 153.4 150.7 152.8 152.9 151.8 158.4r 145.8 153.2 152.7 EXISTING UNITS (one-family) 18 Number sold 3,219 3,520 3,800 4,350 4,250 3,840 4,070 4,120 4,110 3,960 3,970 3,930 3,890 Price of units sold (thousands of dollars)2 19 99.7 103.6 106.5 107.4 107.9 107.2 107.6 108.9 109.8 112.8 111.7 112.4 108.4 20 Average 127.4 130.8 133.1 133.7 134.6 133.3 134.4 135.5 136.6 140.9 139.3 140.6 135.2 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 403,644 435,355 466,365 499,931 488,469 485,894 496,042 497,035 504,356 506,144 506,827 506,810 515,100 ?? 293,536 316,115 341,101 367,271 363,852 361,895 371,681 374,091 378,235 379,345 377,694 377,473 383,254 73 157,837 187,870 210,455 228,549 229,775 233,322 236,767 238,049 241,162 240,694 239,422 238,553 239,775 74 135,699 128,245 130,646 138,722 134,077 128,573 134,914 136,042 137,073 138,651 138,272 138,920 143,479 75 Industrial buildings 22,281 20,720 19,533 20,391 19,682 19,972 19,905 21,221 21,338 20,960 20,967 22,311 23,471 76 Commercial buildings 48,482 41,523 42,627 47,342 43,261 42,065 46,602 47,481 47,912 48,410 48,702 48,288 50,283 77 Other buildings 20,797 21,494 23,626 24,225 22,998 22,258 23,918 23,824 23,956 24,439 23,764 23,250 24,352 28 Public utilities and other 44,139 44,508 44,860 46,764 48,136 44,278 44,489 43,516 43,867 44,842 44,839 45,071 45,373 79 Public 110,107 119,238 125,262 132,659 124,617 123,999 124,361 122,944 126,121 126,799 129,133 129,337 131,846 30 1,837 2,502 2,454 2,298 2,911 2,404 2,231 1,959 2,024 2,277 2,087 2,018 1,689 31 32,041 34,899 37,355 40,657 38,410 36,329 38,830 39,508 40,655 40,300 40,272 39,979 40,236 37 Conservation and development 5,010 6,021 5,976 5,230 5,707 6,731 5,206 5,851 5,677 4,605 5,895 5,715 6,663 33 Other 71,219 75,816 79,477 84,474 77,589 78,535 78,094 75,626 77,765 79,617 80,879 81,625 83,258 1. Not at annual rates. private, domestic shipments as reported by the Manufactured Housing Institute and seasonally 2. Not seasonally adjusted. adjusted by the Census Bureau, and (2) sales and prices of existing units, which are published 3. Recent data on value of new construction may not be strictly comparable with data by the National Association of Realtors. All back and current figures are available from the for previous periods because of changes by the Bureau of the Census in its estimating originating agency. Permit authorizations are those reported to the Census Bureau from 17,000 techniques. For a description of these changes, see Construction Reports (C-30-76-5), jurisdictions beginning in 1984. issued by the Census Bureau in July 1976. SOURCES. Bureau of the Census estimates for all series except (1) mobile homes, which are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • January 1995 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data except as noted Change from 12 Change from 3 months earlier months earlier (annual rate) Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1993 1994 1994 OOOcccttt... 11999933 11999944 111999999444111 OOcctt.. OOcctt.. Dec. Mar/ Juner Sept/ June July Aug. Sept. Oct. CONSUMER PRICES2 (1982-84=100) 1 Ail items 2.8 2.6 3.3 IS 2.5 3.6 J J J J2 .1 149.5 2 2.4 2.4 4.9 -1.1 2.8 5.1 .3 .5 .4 .3 .0 145.0 3 Energy items .9 .4 1.2 4.7 -4.9 10.9 .1 1.8 1.4 -.7 -.7 105.8 4 All items less food and energy 3.0 2.9 3.4 2.9 3.1 2.6 .3 .2 .3 .2 .2 158.0 5 Commodities 1.6 1.7 2.4 .6 4.2 .6 .4 .1 -.1 .1 .0 138.3 6 Services 3.7 3.5 3.7 4.2 2.4 3.6 .2 .2 .4 .2 .2 169.3 PRODUCER PRICES (1982=100) 7 Finished goods .2 1.0 -.3 3.6 -.3 2.6 .1 .5 .6 -.5 -.5 125.8 8 Consumer foods 1.3 .6 5.2 -.6 -5.5 3.9 .0? ,4R .7 -.2 -.2 126.1 9 Consumer energy -1.5 -2.2 -15.6 15.4 -1.0 3.2 r 2.R 1.7 -2.9 -1.2 77.1 10 Other consumer goods -.7 1.7 1.5 2.0 1.5 2.0 .0 .0 .4 .1 -.3 139.6 11 Capital equipment 1.6 1.9 .3 4.3 3.0 2.4 .IR ,3R .1 .1 -1.0 134.8 Intermediate materials 12 Excluding foods and feeds .9 3.2 -.3 2.8 3.1 5.9 .6' .5R .7 .3 .4 120.4 13 Excluding energy 1.4 4.1 1.6 1.9 3.9 6.2 .6 .4 .5 .6 .7 129.1 Crude materials 14 1.9 -6.5 18.4 -4.5 -20.6 -12.9 -.T -2.2' -1.4 .2 -2.0 98.8 15 Energy -4.2 -10.6 -22.1 10.1 21.0 -20.5 2.5R -.1' -.1 -5.3 .0 71.0 16 Other 9.8 13.1 15.4 22.7 -.8 18.8 l.lr 1.7R 1.4 1.3 .9 159.2 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 rentalequivalence 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 1993 1994 AAccccoouunntt 11999911 11999922 11999933 Q3 Q4 Ql Q2 Q3 GROSS DOMESTIC PRODUCT 1 5,724.8 6,020.2 6343.3 6359.2 6,478.1 6374.7 6,689.9 6,775.9 By source 2 Personal consumption expenditures 3,902.4 4,136.9 4,378.2 4,401.2 4,469.6 4,535.0 44,,558866..44 44,,665555..33 3 Durable goods 456.6 492.7 538.0 541.9 562.8 576.2 580.3 594.7 4 Nondurable goods 1,257.8 1,295.5 1,339.2 1,340.2 1,355.2 1,368.9 1,381.4 1,402.0 5 Services 2,188.1 2,348.7 2,501.0 2,519.1 2,551.6 2,589.9 2,624.7 2,658.6 6 Gross private domestic investment 744.8 788.3 882.0 882.2 922.5 966.6 1,034.4 1,051.1 7 746.6 785.2 866.7 868.3 913.5 942.5 967.0 978.7 8 Nonresidential 557.0 561.4 616.1 619.0 646.3 665.4 683.3 696.7 <> Structures 182.9 171.1 173.4 173.9 176.7 172.7 181.8 181.1 10 Producers' durable equipment 374.1 390.3 442.7 445.1 469.6 492.7 501.5 515.6 11 Residential structures 189.6 223.8 250.6 249.3 267.2 277.1 283.6 282.0 12 Change in business inventories -1.8 3.0 15.4 13.9 9.0 24.1 67.4 72.5 13 -1.2 -2.7 20.1 24.2 10.7 22.3 60.4 64.5 14 Net exports of goods and services -19.9 -30.3 -65.3 -77.0 -71.2 -86.7 -97.6 -116.9 15 601.1 638.1 659.1 649.0 680.3 674.2 704.5 720.1 16 620.9 668.4 724.3 726.0 751.4 760.9 802.1 836.9 17 Government purchases of goods and services 1,097.4 1,125.3 1,148.4 1,152.9 1,157.2 1,159.8 1,166.7 1,186.4 18 445.8 449.0 443.6 442.7 439.8 437.8 435.1 442.9 19 State and local 651.6 676.3 704.7 710.2 717.4 722.0 731.5 743.5 By major type of product 20 Final sales, total 5,726.6 6,017.2 6,327.9 6,345.4 6,469.2 66,,555500..66 66,,662222..55 66,,770033..55 71 Goods 2,225.7 2,292.0 2,390.4 2,381.9 2,452.6 2,489.1 2,493.7 2,531.3 ?? Durable 934.2 968.6 1,032.4 1,026.8 1,072.9 1,098.2 1,099.4 1,117.8 23 Nondurable 1,291.5 1,323.4 1,358.1 1,355.1 1,379.7 1,390.9 1,394.3 1,413.6 ?4 Services 3,028.9 3,227.2 3,405.5 3,429.3 3,459.3 3,503.8 3,555.4 3,596.8 25 472.0 498.1 532.0 534.1 557.2 557.7 573.4 575.3 26 Change in business inventories -1.8 3.0 15.4 13.9 9.0 24.1 67.4 72.5 71 -16.9 -13.0 8.6 14.9 9.0 20.6 38.2 52.6 28 15.1 16.0 6.7 -1.1 .0 3.5 29.2 19.9 MEMO 29 Total GDP in 1987 dollars 4,867.6 4,9793 5,134.5 5,139.4 5,218.0 5,261.1 55331144..11 55335599..22 NATIONAL INCOME 30 4,608.2 4,829.5 5,131.4 5,138.5 5,262.0 5308.7 5,430.7 n.a. 31 Compensation of employees 3,404.8 3,591.2 3,780.4 3,801.7 3,845.8 3,920.0 3,979.3 4,021.9 V. Wages and salaries 2,816.0 2,954.8 3,100.8 3,115.9 3,148.4 3,208.3 3,257.2 3,292.3 33 Government and government enterprises 545.4 567.3 583.8 586.1 587.8 595.7 601.9 604.2 34 Other 2,270.6 2,387.5 2,517.0 2,529.8 2,560.7 2,612.6 2,655.4 2,688.1 35 Supplement to wages and salaries 588.8 636.4 679.6 685.9 697.4 711.7 722.0 729.7 36 Employer contributions for social insurance 289.8 307.7 324.3 327.0 330.6 338.5 343.6 346.0 37 Other labor income 299.0 328.7 355.3 358.8 366.8 373.2 378.4 383.7 38 376.2 418.7 441.6 420.3 462.9 471.0 471.3 465.4 39 Business and professional1 339.5 374.4 404.3 404.5 418.5 423.8 431.9 436.9 40 Farm1 36.7 44.4 37.3 15.8 44.4 47.2 39.3 28.5 41 Rental income of persons2 -10.5 -5.5 24.1 26.3 30.3 15.3 34.1 33.8 4? 390.3 405.1 485.8 493.5 533.9 508.2 546.4 n.a. 43 365.2 395.9 462.4 458.7 501.7 483.5 523.1 n.a. 44 Inventory valuation adjustment 5.8 -6.4 -6.2 3.0 --66..55 -12.3 -14.1 -18.9 45 Capital consumption adjustment 19.4 15.7 29.5 31.7 3388..88 37.0 37.4 37.8 46 Net interest 447.4 420.0 399.5 396.7 389.1 394.2 399.7 n.a. 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • January 1995 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1993 1994 11999911 11999922 11999933 Q3 Q4 Ql Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 4,860.3 5,1543 5375.1 5395.9 5,484.6 5355.8 5,659.9 5,727.8 2 Wage and salary disbursements 2,816.1 2,974.8 3,080.8 3,115.9 3,148.4 3,208.3 3,257.2 3,292.3 4 5 6 7 3 G C D Se o o i M s r m v v tr e i a m i c r b n n e o u u m d t f i i a n i e v t c d n y e t u t - u p s i r a n t r i r n d o n i d e u d g s s u g t c r o i i v n es g e r n in m d e u n s t t r e ie n s t erprises 7 5 6 5 8 3 4 5 4 8 8 5 7 8 4 . . . . . 4 5 2 4 0 7 5 6 9 5 5 7 8 6 6 7 8 2 7 7 . . . . . 6 3 3 6 3 1, 7 7 5 5 0 7 0 8 8 2 3 1 3 8 1 . . . . . 8 9 8 4 4 1, 7 5 7 5 0 8 8 9 0 3 1 6 4 9 8 . . . . . 1 9 4 6 8 1, 7 6 7 5 0 0 9 1 8 5 1 1 2 7 7 . . . . . 7 0 6 8 0 1, 8 6 7 5 0 0 9 0 2 8 1 5 9 8 2 . . . . . 9 7 4 6 0 1, 6 7 8 6 1 4 1 1 0 0 2 2 1 1 1 . . . . . 5 8 6 9 2 1, 8 6 7 6 1 1 5 2 0 1 7 3 1 4 3 . . . . . 8 8 0 2 2 8 Other labor income 299.0 328.7 355.3 358.8 366.8 373.2 378.4 383.7 9 Proprietors' income1 376.2 418.7 441.6 420.3 462.9 471.0 471.3 465.4 10 Business and professional1 339.5 374.4 404.3 404.5 418.5 423.8 431.9 436.9 11 Farm1 36.7 44.4 37.3 15.8 44.4 47.2 39.3 28.5 12 Rental income of persons -10.5 -5.5 24.1 26.3 30.3 15.3 34.1 33.8 13 Dividends 150.5 161.0 181.3 182.8 184.1 185.7 191.7 196.9 14 Personal interest income 695.1 665.2 637.9 634.1 627.7 631.1 649.4 670.2 15 Transfer payments 770.1 860.2 915.4 921.6 931.0 947.4 957.6 968.3 16 Old-age survivors, disability, and health insurance benefits 382.3 414.0 444.4 446.8 452.1 463.8 470.7 476.3 17 LESS: Personal contributions for social insurance 236.2 248.7 261.3 263.8 266.6 276.3 279.9 282.8 18 EQUALS: Personal income 4,860.3 5,154.3 5,375.1 5,395.9 5,484.6 5,555.8 5,659.9 5,727.8 19 LESS: Personal tax and nontax payments 623.7 648.6 686.4 695.4 707.0 723.0 746.4 743.8 20 EQUALS: Disposable personal income 4,236.6 4,505.8 4,688.7 4,700.5 4,777.6 4,832.8 4,913.5 4,984.0 21 LESS: Personal outlays 4,025.0 4,257.8 4,496.2 4,518.2 4,588.2 4,657.3 4,712.4 4,785.3 22 EQUALS: Personal saving 211.6 247.9 192.6 182.3 189.4 175.5 201.1 198.8 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,263.3 19,489.7 19,878.8 19,871.2 20,119.1 20,235.2 20,389.7 20,506.9 24 Personal consumption expenditures 12,898.9 13,110.4 13,390.8 13,425.1 13,518.9 13,639.8 13,650.9 13,713.7 25 Disposable personal income 14,003.0 14,279.0 14,341.0 14,338.0 14,451.0 14,535.0 14,625.0 14,682.0 26 Saving rate (percent) 5.0 5.5 4.1 3.9 4.0 3.6 4.1 4.0 GROSS SAVING 27 Gross saving 751.4 722.9 787.5 788.9 825.8 886.2 9233 n.a. 28 Gross private saving 937.3 980.8 1,002.5 989.9 1,011.4 1,037.3 1,041.4 n.a. 29 Personal saving 211.6 247.9 192.6 182.3 189.4 175.5 201.1 198.8 30 Undistributed corporate profits' 99.2 94.3 120.9 130.3 147.9 127.7 142.3 n.a. 31 Corporate inventory valuation adjustment 5.8 -6.4 -6.2 3.0 -6.5 -12.3 -14.1 -18.9 Capital consumption allowances 32 Corporate 383.3 396.8 407.8 413.3 411.1 432.2 425.9 432.3 33 Noncorporate 243.1 261.8 261.2 264.1 263.0 301.8 272.1 276.7 34 Government surplus, or deficit (-), national income and product accounts -185.9 -257.8 -215.0 -201.0 -185.6 -151.1 -118.1 n.a. 35 Federal -202.9 -282.7 -241.4 -224.9 -220.1 -176.2 -145.1 n.a. 36 State and local 17.0 24.8 26.3 23.9 34.5 25.2 27.0 n.a. 37 Gross investment 752.9 731.7 789.8 783.4 8093 850.2 8993 n.a. 38 Gross private domestic investment 744.8 788.3 882.0 882.2 922.5 966.6 1,034.4 1,051.1 39 Net foreign investment 8.1 -56.6 -92.3 -98.8 -113.2 -116.4 -135.1 n.a. 40 Statistical discrepancy 13 8.8 23 -5.5 -163 -36.1 -24.0 n.a. 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1993 1994 IItteemm ccrreeddiittss oorr ddeebbiittss 11999911 11999922 11999933 Q2 Q3 Q4 Ql Q2P 1 Balance on current account -6,952 -67,886 -103,896 -25,602 -27,856 -30,587 -32,317 -36,970 2 Merchandise trade balance2 -74,068 -96,097 -132,575 -33,727 -36,488 -33,169 -36,962 -41,771 3 Merchandise exports 416,913 440,361 456,866 113,787 111,736 119,679 118,018 122,670 4 Merchandise imports -490,981 -536,458 -589,441 -147,514 -148,224 -152,848 -154,980 -164,441 5 Military transactions, net -5,485 -3,034 -763 -129 -87 -444 -338 17 6 Other service transactions, net 51,082 58,747 57,613 14,786 14,317 13,637 12,972 14,743 7 Investment income, net 14,833 4,540 3,946 668 2,015 -590 -811 -2,495 8 U.S. government grants 23,959 -15,010 -14,620 -2,730 -3,114 -5,591 -2,371 -2,588 9 U.S. government pensions and other transfers -3,461 -3,735 -3,785 -985 -986 -987 -968 -975 10 Private remittances and other transfers -13,811 -13,297 -13,712 -3,486 -3,513 -3,443 -3,839 -3,901 11 Change in U.S. government assets other than official reserve assets, net (increase, —) 2,900 -1,652 -306 -281 -192 -321 490 -217 12 Change in U.S. official reserve assets (increase, -) 5,763 3,901 -1,379 822 -545 -673 -59 3,537 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -177 2,316 -537 -166 -118 -113 -101 -108 15 Reserve position in International Monetary Fund -367 -2,692 -44 313 -48 -80 -3 251 16 Foreign currencies 6,307 4,277 -797 675 -378 -480 45 3,394 17 Change in U.S. private assets abroad (increase, -) -60,175 -63,759 -146,213 -36,507 -34,915 -62,628 -48,667 -5,147 18 Bank-reported claims3 4,763 22,314 32,238 5,595 7,335 -9,293 -1,236 15,141 19 Nonbank-reported claims 11,097 45 -598 -87 4,838 -303 1,941 20 U.S. purchases of foreign securities, net -44,740 -45,114 -119,983 -24,340 -40,777 -30,349 -24,605 -I 2,486 21 U.S. direct investments abroad, net -31,295 -41,004 -57,870 -17,675 -6,311 -22,683 -24,767 -7,802 22 Change in foreign official assets in United States (increase, +) 17,199 40,858 71,681 17,492 19,259 23,962 11,530 7,869 23 U.S. Treasury securities 14,846 18,454 48,702 5,668 19,098 22,856 1,193 6,168 24 Other U.S. government obligations 1,301 3,949 4,062 1,082 1,345 970 50 2,483 25 Other U.S. government liabilities4 1,177 2,572 1,666 158 1,121 825 938 121 26 Other U.S. liabilities reported by U.S. banks3 -1,484 16,571 14,666 9,485 -2,489 -587 10,139 53 27 Other foreign official assets5 1,359 -688 2,585 1,099 184 -102 -790 -956 28 Change in foieign private assets in United States (increase, +) 80,935 105,646 159,017 34,337 52,675 66,200 83,548 34,460 29 U.S. bank-reported liabilities3 3,994 15,461 18,452 3,459 27,618 7,370 35,200 24,770 30 U.S. nonbank-reported liabilities -3,115 13,573 14,282 7,606 1,169 4,733 5,867 31 Foreign private purchases of U.S. Treasury securities, net 18,826 36,857 24,849 -622 3,474 7,996 9,260 -7,662 32 Foreign purchases of other U.S. securities, net 35,144 29,867 80,068 15,025 17,445 38,008 21,258 13,447 33 Foreign direct investments in United States, net 26,086 9,888 21,366 8,869 2,969 8,093 11,963 3,905 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 35 Discrepancy -39,670 -17,108 21,096 9,739 -8,427 4,047 -14,525 -3,532 36 Due to seasonal adjustment 435 -6,643 103 5,810 480 37 Before seasonal adjustment -39,670 -17,108 21,096 9,304 -1,785 3,944 -20,335 -4,012 MEMO Changes in official assets 38 U.S. official reserve assets (increase, —) 5,763 3,901 -1,379 822 -545 -673 -59 3,537 39 Foreign official assets in United States, excluding line 25 (increase, +) 16,022 38,286 70,015 17,334 18,138 23,137 10,592 7,748 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -4,882 5,942 -3,847 -869 -3,194 -229 -1,674 -3,965 1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38^10. 4. Associated primarily with military sales contracts and other transactions arranged 2. Data are on an international accounts basis. The data differ from the Census basis with or through foreign official agencies. data, shown in table 3.11, for reasons of coverage and timing. Military exports are 5. Consists of investments in U.S. corporate stocks and in debt securities of private excluded from merchandise trade data and are included in line 5. corporations and state and local governments. 3. Reporting banks include all types of depository institution as well as some brokers SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of and dealers. Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • January 1995 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1994 IItteemm 11999911 11999922 11999933 Mar. Apr. May June July Aug.' Sept.p 1 Goods and services, balance -28,472 -40,384 -75,725 -6,898 -8,447 -9,381 -9,041 -11,191 -9,680 -10,128 2 Merchandise -74,068 -96,097 -132,575 -11,446 -13,337 -14,271 -14,019 -15,948 -14,094 -14,604 3 Services 45,5% 55,713 56,850 4,548 4,890 4,890 4,978 4,757 4,414 4,476 4 Goods and services, exports 580,127 616,924 641,677 58,387 56,402 56,397 58,362 56,327 59,943 59,673 5 Merchandise 416,913 440,361 456,866 42,065 40,378 40,276 42,028 40,133 44,126 43,539 6 Services 163,214 176,563 184,811 16,322 16,024 16,121 16,334 16,194 15,817 16,134 7 Goods and services, imports -608,599 -657,308 -717,402 -65,285 -64,849 -65,778 -67,403 -67,518 -69,623 -69,801 8 Merchandise -490,981 -536,458 -589,441 -53,511 -53,715 -54,547 -56,047 -56,081 -58,220 -58,143 9 Services -117,618 -120,850 -127,961 -11,774 -11,134 -11,231 -11,356 -11,437 -11,403 -11,658 MEMO 10 Balance on merchandise trade, Census basis -66,723 -84,501 —115,568 —9,583 -12,045 —12,885 -13,028 -14,845 -12,758 —13,523 1. Data show monthly values consistent with quarterly figures in the US. balance of SOURCE. FT900, US. Department of Commerce, Bureau of the Census and Bureau of payments accounts. Economic Analysis. 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1994 AAsssseett 11999911 11999922 11999933 Apr. May June July Aug. Sept. Oct.p 1 Total 77,719 71,323 73,442 76,565 74,420 75,732 75,443 75,740 76,532 78,172 2 Gold stock, including Exchange Stabilization Fund1 11,057 11,056 11,053 11,053 11,052 11,052 11,052 11,054 11,054 11,053 3 Special drawing rights^3 11,240 8,503 9,039 9,440 9,522 9,731 9,696 9,837 9,971 10,088 4 Reserve position in International Monetary Fund 9,488 11,759 11,818 11,899 11,841 12,184 12,183 12,161 12,067 12,339 5 Foreign currencies4 45,934 40,005 41,532 44,173 42,005 42,765 42,512 42,688 43,440 44,692 1. Gold held "under earmark" at Federal Reserve Banks for foreign and international been used. U.S. SDR holdings and reserve positions in the IMF also have been valued on accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold this basis since July 1974. stock is valued at $42.22 per fine troy ounce. 3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the 2. Special drawing rights (SDRs) are valued according to a technique adopted by the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 mil- International Monetary Fund (IMF) in July 1974. Values are based on a weighted average lion; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net of exchange rates for the currencies of member countries. From July 1974 through transactions in SDRs. December 1980, sixteen currencies were used; since January 1981, five currencies have 4. Valued at current market exchange rates. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1994 AAsssseett 11999911 11999922 11999933 Apr. May June July Aug. Sept. Oct.p 1 Deposits 968 205 386 171 174 604 181 188 342 223 Held in custody 2 U.S. Treasury securities2 281,107 314,481 379,394 396,495 402,170 411,580 423,715 427,574 429,819 439,854 3 Earmarked gold3 13,303 13,118 12,327 12,104 12,065 12,065 12,056 12,044 12,044 12,039 1. Excludes deposits and U.S. Treasury securities held for international and regional 3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; organizations. 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, in each case measured at face (not market) 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 1994 IItteemm 11999922 11999933 Mar. Apr. May June July Aug/ Sept.p 1 Total1 412,624 482,808 493,152 479,215 488,161 501,827r 516,419 517,852 518,795 By type 2 Liabilities reported by banks in the United States 54,967 69,808 79,6% 74,695 76,911 80,937r 84,889 79,588 81,476 3 U.S. Treasury bills and certificates3 104,596 150,900 148,707 140,653 134,568 141,338 146,247 143,400 138,261 U.S. Treasury bonds and notes 4 Marketable 210,931 212,203 215,481 214,841 226,094 228,773 233,670 242,221 246,940 5 Nonmarketable4 4,532 5,652 5,763 5,799 5,837 5,875 5,913 5,952 5,990 6 U.S. securities other than U.S. Treasury securities5 37,598 44,245 43,505 43,227 44,751 44,904 45,700 46,691 46,128 By area 7 Europe' 189,230 206,921 215,065 210,417 213,549 221,957r 227,469 226,170 224,704 8 Canada 13,700 15,285 14,018 13,901 14,505 15,996r 18,656 18,547 19,237 9 Latin America and Caribbean 37,973 55,898 53,389 44,439 43,731 42,696 42,749 44,070 44,267 10 Asia 164,690 197,708 203,811 203,434 209,029 211,200r 217,881 220,435 222,287 11 Africa 3,723 4,052 3,718 3,691 3,969 4,110 3,862 4,259 4,388 12 Other countries 3,306 2,942 3,149 3,331 3,376 5,866 5,800 4,369 3,910 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored agencies, 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, and U.S. corporate stocks and bonds. negotiable time certificates of deposit, and borrowings under repurchase agreements. 6. Includes countries in Oceania and Eastern Europe. 3. Includes nonmarketable certificates of indebtedness (including those payable in SOURCE. Based on U.S. Department of the Treasury data and on data reported to the foreign currencies through 1974) and Treasury bills issued to official institutions of department by banks (including Federal Reserve Banks) and securities dealers in the foreign countries. United States, and on the 1989 benchmark survey of foreign portfolio investment in the 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and United States. 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 1994 IItteemm 11999900 11999911 11999922 Sept. Dec. Mar. June 1 Banks' liabilities 70,477 75,129 72,796 81,225 77,627 85,737 71,695 2 Banks' claims 66,796 73,195 62,799 59,136 59,151 72,728 55,698 3 Deposits 29,672 26,192 24,240 20,930 19,379 19,912 20,440 4 Other claims 37,124 47,003 38,559 38,206 39,772 52,816 35,258 5 Claims of banks' domestic customers2 6,309 3,398 4,432 2,494 3,058 3,655 4,182 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 States that authorities. 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 • January 1995 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1994 IItteemm 11999911 11999922 11999933 Mar. Apr. May Juner July Aug. Sept.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 756,066 810,259 914,989 952,570 960,143 961,827 991,232 997,099r 992,932' 991,655 2 Banks' own liabilities 575,374 606,444 621,118 648,799 666,673 664,770 685,265 697,114r 692,663r 704,736 3 Demand deposits 20,321 21,828 21,575 23,035 23,646 27,878 24,566 23,595 22,994 23,552 4 Time deposits2 159,649 160,385 175,117 176,973 178,224 183,171 184,473 186,400r 185,246r 178,093 5 Other3 66,305 93,237 110,117 111,444 123,797 122,681 117,368 126,973' 117,844r 133,079 6 Own foreign offices4 329,099 330,994 314,309 337,347 341,006 331,040 358,858 360,146r 366,579r 370,012 7 Banks' custodial liabilities5 180,692 203,815 293,871 303,771 293,470 297,057 305,967 299,985r 300,269' 286,919 8 U.S. Treasury bills and certificates6 110,734 127,644 176,523 173,475 167,999 161,145 171,315 170,05 lr 170,579 164,321 9 Other negotiable and readily transferable instruments7 18,664 21,974 36,288 41,762 38,167 48,775 49,915 46,257r 46,352 38,914 10 Other 51,294 54,197 81,060 88,534 87,304 87,137 84,737 83,677r 83,338r 83,684 11 Nonmonetary international and regional organizations8... 8,981 9,350 10,935 8,086 5,912 8,363 8,631 7,318 4,967 6,118 12 Banks' own liabilities 6,827 6,951 5,639 5,641 4,328 6,437 5,256 5,511 3,972 5,141 13 Demand deposits 43 46 15 209 26 35 31 29 36 28 14 Time deposits 2,714 3,214 2,780 2,482 2,411 2,785 3,073 3,469 2,335 2,491 15 Other3 4,070 3,691 2,844 2,950 1,891 3,617 2,152 2,013 1,601 2,622 16 Banks' custodial liabilities5 2,154 2,399 5,296 2,445 1,584 1,926 3,375 1,807 995 977 17 U.S. Treasury bills and certificates6 1,730 1,908 4,275 2,097 1,358 857 2,825 1,082 836 767 18 Other negotiable and readily transferable instruments7 424 486 1,021 338 226 1,069 548 725 159 205 19 Other 0 5 0 10 0 0 2 0 0 5 20 Official institutions9 131,088 159,563 220,708 228,403 215,348 211,479 222,275 231,136r 222,988r 219,737 21 Banks' own liabilities 34,411 51,202 64,231 66,995 64,682 64,817 67,691 73,967r 67,465r 71,207 22 Demand deposits 2,626 1,302 1,601 1,668 1,504 1,435 2,029 1,472 1,232 1,691 23 Time deposits2 16,504 17,939 21,654 23,943 22,064 24,398 26,029 28,052r 26,793r 27,542 24 Other3 15,281 31,961 40,976 41,384 41,114 38,984 39,633 44,443r 39,440" 41,974 25 Banks' custodial liabilities5 96,677 108,361 156,477 161,408 150,666 146,662 154,584 157,169 155,523 148,530 26 U.S. Treasury bills and certificates6 92,692 104,596 150,900 148,707 140,653 134,568 141,338 146,247 143,400 138,261 27 Other negotiable and readily transferable instruments7 3,879 3,726 5,482 12,414 9,969 12,050 13,112 10,863 11,990 10,203 28 Other 106 39 95 287 44 44 134 59 133 66 29 Banks10 522,265 547,320 582,441 611,693 624,710 628,200 645,698 649,355r 652,352r 646,742 30 Banks' own liabilities 459,335 476,117 474,695 497,795 514,901 510,790 530,866 536,263r 536,570* 538,286 31 Unaffiliated foreign banks 130,236 145,123 160,386 160,448 173,895 179,750 172,008 176,117 169,99 lr 168,274 32 Demand deposits 8,648 10,170 9,719 10,707 11,785 15,551 12,323 11,792 11,831 10,566 33 Time deposits2 82,857 90,296 105,192 104,809 107,662 109,084 108,317 106,889 107,272r 101,205 34 Other3 38,731 44,657 45,475 44,932 54,448 55,115 51,368 57,436 50,888r 56,503 35 Own foreign offices4 329,099 330,994 314,309 337,347 341,006 331,040 358,858 360,146r 366,579r 370,012 36 Banks' custodial liabilities5 62,930 71,203 107,746 113,898 109,809 117,410 114,832 113,092r 115,782r 108,456 37 U.S. Treasury bills and certificates6 7,471 11,087 10,707 11,009 10,081 11,407 10,834 10,135 12,249 10,951 38 Other negotiable and readily transferable instruments7 5,694 7,555 17,020 17,404 15,684 22,081 22,347 21,446 22,049 15,488 39 Other 49,765 52,561 80,019 85,485 84,044 83,922 81,651 81,511r 81,484r 82,017 40 Other foreigners 93,732 94,026 100,905 104,388 114,173 113,785 114,628 109,290 112,625r 119,058 41 Banks' own liabilities 74,801 72,174 76,553 78,368 82,762 82,726 81,452 81,373 84,656r 90,102 42. Demand deposits 9,004 10,310 10,240 10,451 10,331 10,857 10,183 10,302 9,895 11,267 43 Time deposits 57,574 48,936 45,491 45,739 46,087 46,904 47,054 47,990* 48,846r 46,855 44 Other3 8,223 12,928 20,822 22,178 26,344 24,965 24,215 23,081r 25,915 31,980 45 Banks' custodial liabilities5 18,931 21,852 24,352 26,020 31,411 31,059 33,176 27,917 27,969 28,956 46 U.S. Treasury bills and certificates6 8,841 10,053 10,641 11,662 15,907 14,313 16,318 12,587r 14,094 14,342 47 Other negotiable and readily transferable instruments7 8,667 10,207 12,765 11,606 12,288 13,575 13,908 13,223r 12,154 13,018 48 Other 1,423 1,592 946 2,752 3,216 3,171 2,950 2,107 1,721 1,596 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 7,456 9,111 17,567 19,209 17,961 26,385 27,075 25,589 25,338 19,160 1. Reporting banks include all types of depository institutions, as well as some brokers 6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to and dealers. official institutions of foreign countries. 2. Excludes negotiable time certificates of deposit, which are included in "Other 7. Principally bankers acceptances, commercial paper, and negotiable time certificates negotiable and readily transferable instruments." of deposit. 3. Includes borrowing under repurchase agreements. 8. Principally the International Bank for Reconstruction and Development, the Inter- 4. For U.S. banks, includes amounts owed to own foreign branches and foreign American Development Bank, and the Asian Development Bank. Excludes "holdings of subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank dollars" of the International Monetary Fund. regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign 9. Foreign central banks, foreign central governments, and the Bank for International banks, consists principally of amounts owed to the head office or parent foreign bank, and Settlements. to foreign branches, agencies, or wholly owned subsidiaries of the head office or parent 10. Excludes central banks, which are included in "Official institutions." 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 States'—Continued 1994 IItteemm 11999911 11999922 11999933 Mar. Apr. May June July Aug. Sept.p AREA 1 Total, all foreigners 756,066 810,259 914,989 952,570 960,143 961,827 991,232' 997,099' 992,932' 991,655 2 Foreign countries 747,085 800,909 904,054 944,484 954,231 953,464 982,601R 989,781R 987,965R 985,537 3 249,097 307,670 376,989 398,584 405,686 404,477 412,205r 422,604' 419,891' 406,506 4 1,193 1,611 1,917 2,515 2,719 3,309 3,578 3,364 3,349 3,014 5 Belgium and Luxembourg 13,337 20,567 28,627 31,827 32,049 32,612 25,306 25,145 27,161' 27,593 6 Denmark 937 3,060 4,517 3,093 3,342 3,207 3,473 2,877 2,634 2,128 7 1,341 1,299 1,872 1,497 1,932 1,849 2,649 2,504 1,735 2,319 8 31,808 41,411 39,741 42,010 43,147 41,982 43,246' 41,410 41,911 43,143 9 8,619 18,630 26,613 31,771 32,704 27,583 33,114' 30,838' 31,045' 31,888 10 765 913 1,519 1,425 1,160 1,453 1,377 1,153 1,199 1,227 11 Italy 13,541 10,041 11,559 12,786 11,915 13,015 12,771 11,537 11,733 10,769 17 7,161 7,365 16,096 17,705 16,347 18,514 18,709' 18,458 17,213' 18,755 13 1,866 3,314 2,966 2,429 2,537 3,278 4,018 3,731 3,195 2,861 14 Portugal 2,184 2,465 3,366 3,131 4,061 2,853 2,920 2,865 2,867 3,023 15 241 577 2,511 1,971 3,041 4,016 4,497 4,593 3,794 2,899 16 11,391 9,793 20,493 19,622 18,321 17,482 15,839' 17,142' 15,459 14,197 17 2,222 2,953 2,572 1,451 2,532 3,443 4,043 5,710 4,152 4,654 18 37,238 39,440 41,555 39,262 40,998 40,174 38,075 41,378 43,486' 41,312 19 Turkey 1,598 2,666 3,227 2,922 2,972 2,759 3,250 3,515 3,238 3,013 70 United Kingdom 100,292 111,805 133,936 149,656 153,906 158,962 163,339' 171,248 174,019 160,193 71 622 504 570 414 407 424 434 230 227 224 22 Other Europe and other former U.S.S.R.12 12,741 29,256 33,332 33,097 31,596 27,562 31,567' 34,906 31,474 33,394 23 Canada 21,605 22,420 20,227 21,430 22,552 25,948 25,480' 26,625 26,346 24,652 74 Latin America and Caribbean 345,529 317,228 351,356 361,546 364,556 358,829 38i,o6C 375,495' 377,632' 384,444 75 7,753 9,477 14,477 14,020 13,270 13,474 13,750 14,592 14,807 13,783 76 100,622 82,284 72,964 77,457 80,843 79,265 85,817 87,264 83,255 86,074 77 Bermuda 3,178 7,079 7,830 6,200 7,671 8,182 8,975 10,103' 8,422' 10,334 78 Brazil 5,704 5,584 5,301 5,258 4,880 5,572 5,708 6,259 5,695 5,729 79 British West Indies 163,620 153,033 184,608 191,133 195,456 188,943 206,263' 198,280' 204,463' 207,986 30 Chile 3,283 3,035 3,183 3,576 3,832 3,286 3,523 3,353 2,988 3,407 31 4,661 4,580 3,171 3,428 4,003 3,865 3,929 3,773 3,726 4,027 37 Cuba 2 3 33 38 9 11 11 12 13 13 33 1,232 993 880 823 846 842 812 819 847 823 34 1,594 1,377 1,207 1,170 1,157 1,137 1,143 1,206 1,141 1,101 35 231 371 410 419 495 526 475 518 531 565 36 19,957 19,454 28,018 27,806 22,362 21,900 21,286 20,179 20,817' 19,932 37 Netherlands Antilles 5,592 5,205 4,195 5,313 5,036 7,021 4,885 4,301 5,058 4,268 38 4,695 4,177 3,582 3,404 3,521 3,811 3,861 4,087 3,843 4,081 39 Peru 1,249 1,080 926 877 898 912 930 916 1,027 1,079 40 Uruguay 2,096 1,955 1,611 1,578 1,536 1,561 1,597 1,420 1,336 1,399 41 13,181 11,387 12,786 12,973 12,312 12,013 11,655 12,004' 13,157' 13,297 42 Other 6,879 6,154 6,174 6,073 6,429 6,508 6,440 6,409 6,506 6,546 43 120,462 143,540 144,656 152,486 149,188 152,135 148,761' 151,317' 152,611' 158,380 China 44 People's Republic of China 2,626 3,202 4,011 5,294 6,058 5,358 6,158' 55,,001188'' 4,394 5,062 45 Republic of China (Taiwan) 11,491 8,408 10,633 9,306 8,698 9,820 8,375 8,811 8,737 8,863 46 14,269 18,499 17,233 18,685 19,093 21,665 19,111' 18,777 18,722 18,881 47 2,418 1,399 1,114 1,658 1,450 1,521 2,136 1,695 1,777' 2,187 48 1,463 1,480 1,986 2,345 1,802 1,537 2,002 1,676' 1,835' 1,828 49 IIssrraaeell 2,015 3,773 4,435 4,580 4,134 3,460 3,762 3,822 3,436 3,192 50 47,069 58,435 61,483 66,425 62,295 63,051 64,124 65,690 65,793 68,244 51 Korea (South) 2,587 3,337 4,913 4,808 4,646 4,523 4,581 5,3 It 4,873 4,622 57 Philippines 2,449 2,275 2,035 2,544 2,619 2,590 3,150 3,396 3,214 3,135 53 Thailand 2,252 5,582 6,137 5,985 5,550 5,788 4,851 5,222 6,364 6,503 54 Middle Eastern oil-exporting countries 15,752 21,437 15,824 13,305 13,655 14,895 14,374 14,935' 15,928 17,138 55 Other 16,071 15,713 14,852 17,551 19,188 17,927 16,137 16,964' 17,538 18,725 56 4,825 5,884 6,634 5,749 5,813 6,166 6,411 6,153 6,36c 6,278 57 Egypt 1,621 2,472 2,208 1,659 1,688 1,984 1,999 1,706 1,914 2,014 58 Morocco 79 76 99 89 76 93 78 80 82 72 59 South Africa 228 190 451 285 331 230 290 289 417 197 60 Zaire 31 19 12 11 11 8 7 8 8 9 61 Oil-exporting countries 1,082 1,346 1,303 1,139 983 1,057 1,204 1,291 1,156' 1,186 62 Other 1,784 1,781 2,561 2,566 2,724 2,794 2,833 2,779 2,783' 2,800 63 5,567 4,167 4,192 4,689 6,436 5,909 8,684 7,587 5,125 5,277 64 4,464 3,043 3,308 3,006 2,991 2,796 5,804 6,288 3,935 3,966 65 Other 1,103 1,124 884 1,683 3,445 3,113 2,880 1,299 1,190 1,311 66 Nonmonetary international and regional organizations 8,981 9,350 10,935 8,086 5,912 8,363 8,631' 7,318 4,967 6,118 67 6,485 7,434 6,850 6,375 4,249 5,634 6,647' 5,446 3,642 4,189 68 Latin American regional 1,181 1,415 3,218 330 393 909 847 612 418 1,058 69 Other regional17 1,315 501 867 1,381 1,270 1,820 1,137 1,260 907 871 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 14. Comprises Algeria, Gabon, Libya, and Nigeria. 12. Includes the Bank for International Settlements. Since December 1992, has 15. Principally the International Bank for Reconstruction and Development. Excludes included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and "holdings of dollars" of the International Monetary Fund. Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United 17. Asian, African, Middle Eastern, and European regional organizations, except the Arab Emirates (Trucial States). Bank for International Settlements, which is included in "Other Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • January 1995 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1994 AArreeaa oorr ccoouunnttrryy 11999911 11999922 11999933 Mar. Apr. May June July Aug.' Sept." 1 Total, all foreigners 514,339 499,437 483,216 474,969 476,239 472,522 476,500' 469,277' 478,429 474,649 2 Foreign countries 508,056 494,355 480,811 473,049 475,055 470,796 474,079r 467,881r 476,470 471,385 3 Europe 114,310 123,377 121,044 129,738 124,723 123,505 119,709r 123,1 Vf 124,297 119,889 4 Austria 327 331 413 489 420 486 416 470 442 282 5 Belgium and Luxembourg 6,158 6,404 6,535 6,775 6,774 6,391 7,115 6,917 6,545 7,253 6 Denmark 686 707 382 612 896 1,332 539 622 464 521 7 Finland 1,907 1,418 598 570 647 669 699 739 511 603 8 France 15,112 14,723 11,490 11,481 11,398 13,092 13,763 13,278r 16,001 14,809 9 Germany 3,371 4,222 7,683 8,164 9,374 8,303 7,224r 7,887r 9,986 8,695 10 Greece 553 717 679 736 720 682 661 583 657 612 11 Italy 8,242 9,047 8,876 7,658 6,370 6,749 6,128 6,074 5,538 5,338 12 Netherlands 2,546 2,468 3,063 2,945 2,575 3,272 3,003 3,006 2,948 2,831 13 Norway 669 355 396 531 598 605 620 751 826 650 14 Portugal 344 325 720 936 846 835 876 1,035 1,040 1,182 15 Russia 1,970 3,147 2,295 1,961 1,862 1,642 1,605 1,541 1,378 1,272 16 Spain 1,881 2,755 2,763 2,666 1,859 2,828 2,502 1,905 2,664 2,219 17 Sweden 2,335 4,923 4,100 3,443 3,313 3,420 3,411 3,632 4,194 3,933 18 Switzerland 4,540 4,717 6,567 8,606 5,578 6,487 6,674 9,028 6,938 5,852 19 Turkey 1,063 962 1,287 1,559 1,546 1,324 1,210 1,208 1,152 1,024 20 United Kingdom 60,395 63,430 60,939 68,175 67,347 63,110 61,166 62,478r 61,273 60,575 21 Yugoslavia^. 825 569 536 376 364 361 340 274 273 258 22 Other Europe and other former U.S.S.R.3 1,386 2,157 1,722 2,055 2,236 1,917 1,757 1,682 1,467 1,980 23 Canada 15,113 13,845 18,410 16,989 17,920 17,114 20,538r 19,9W 19,688 19,261 24 Latin America and Caribbean 246,137 218,078 224,032 220,298 219,983 219,608 221,929r 215,931r 223,527 220,423 25 Argentina 5,869 4,958 4,425 4,662 5,161 5,178 5,506 5,811 5,876 5,614 26 Bahamas 87,138 60,835 65,045 66,022 66,239 64,974 64,098 67,951 63,273 62,985 27 Bermuda 2,270 5,935 8,032 8,342 8,837 6,591 6,276 5,783' 7,328 5,474 28 Brazil 11,894 10,773 11,803 12,924 11,457 11,995 11,356 10,618 10,122 10,284 29 British West Indies 107,846 101,507 97,993 92,252 91,700 94,150 98,045 89,474 100,454 100,721 30 Chile 2,805 3,397 3,614 3,640 3,455 3,353 3,419 3,327 3,410 3,412 31 Colombia 2,425 2,750 3,179 3,057 3,263 3,229 3,366 3,326 3,414 3,459 32 Cuba 0 0 0 0 0 0 0 8 0 0 33 Ecuador 1,053 884 673 703 679 677 707 683 604 624 34 Guatemala 228 262 286 289 273 291 312 308 320 310 35 Jamaica 158 162 195 163 191 198 194 186 210 204 36 Mexico 16,567 14,991 15,835 16,210 16,300 16,456 16,768 16,684' 16,764 16,479 37 Netherlands Antilles 1,207 1,379 2,367 2,411 2,769 2,871 2,366 2,118 2,139 1,350 38 Panama 1,560 4,654 2,913 2,491 2,539 2,341 2,219 2,357 2,386 2,310 39 Peru 739 730 651 751 807 901 908 926 924 938 40 Uruguay 599 936 951 532 500 540 608 748 706 711 41 Venezuela 2,516 2,525 2,904 2,662 2,526 2,462 2,434 2,245 2,150 2,044 42 Other 1,263 1,400 3,166 3,187 3,287 3,401 3,347r 3,378r 3,447 3,504 43 125,262 131,789 110,697 99,013 105,412 103,874 104,857r 102,360r 102,341 105,305 China 44 People's Republic of China 747 906 2,299 796 843 802 784 941 754 1,167 45 Republic of China (Taiwan) 2,087 2,046 2,628 2,162 1,817 2,024 1,948 1,786 1,807 1,257 46 Hong Kong 9,617 9,642 10,864 11,666 9,903 8,996 9,783 10,031 9,877 12,873 47 India 441 529 589 737 684 738 784 791 829 927 48 Indonesia 952 1,189 1,522 1,647 1,545 1,378 1,319 1,369 1,363 1,339 49 Israel 860 820 826 664 676 711 671r 638r 675 660 50 Japan 84,807 79,172 59,576 49,771 54,931 53,120 55,535r 53,313r 52,629 52,880 51 Korea (South) 6,048 6,179 7,569 7,502 7,457 7,410 7,984 8,112 8,553 8,606 52 Philippines 1,910 2,145 1,408 1,307 925 914 654 514 533 561 53 Thailand 1,713 1,867 2,154 2,764 2,744 2,944 2,979r 2,839r 2,784 2,685 54 Middle Eastern oil-exporting countries4 8,284 18,540 14,398 14,153 16,387 18,323 16,565 16,342 16,080 15,287 55 Other 7,796 8,754 6,864 5,844 7,500 6,514 5,851r 5,684r 6,457 7,063 56 4,928 4,279 3,819 3,690 3,680 3,684 3,788 3,456 3,659 3,464 57 Egypt 294 186 196 205 206 219 281 234 229 250 58 Morocco 575 441 444 518 472 470 518 479 485 490 59 South Africa 1,235 1,041 633 565 557 575 556 492 656 559 60 Zaire 4 4 4 4 5 5 4 3 3 3 61 Oil-exporting countries5 1,298 1,002 1,128 1,210 1,207 1,211 1,239 1,194 1,189 1,103 62 Other 1,522 1,605 1,414 1,188 1,233 1,204 1,190 1,054 1,097 1,059 63 Other 2,306 2,987 2,809 3,321 3,337 3,011 3,258 3,105 2,958 3,043 64 Australia 1,665 2,243 2,072 1,685 1,859 1,369 1,489 1,587 1,390 1,693 65 Other 641 744 737 1,636 1,478 1,642 1,769 1,518 1,568 1,350 66 Nonmonetary international and regional organizations6 ... 6,283 5,082 2,405 1,920 1,184 1,726 2,421 1,396 1,959 3,264 1. Reporting banks include all types of depository institutions, as well as some brokers 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab and dealers. 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, has included 6. Excludes the Bank for International Settlements, which is included in "Other all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. Europe." 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 1994 TTyyppee ooff ccllaaiimm 11999933 Mar. Apr. May June July Aug. Sept.p 1 Total 1,605,709' 1,550,487' 1,458,849' 1,470,901' 1,474,359' 2 Banks' claims 514,339 499,437 483,216 474,969 476,239 472,522 476,389 468,837 478,476 3 Foreign public borrowers 37,126 31,367 28,814 25,764 25,116 22,552 21,650 21,926 22,788 4 Own foreign offices 318,800 303,991 286,882 280,898 280,435 284,532 289,451 283,840 286,939 5 Unaffiliated foreign banks 116,602 109,342 98,030 94,809 96,903 98,186 101,789 100,484 102,270 6 Deposits 69,018 61,550 46,887 44,177 47,971 50,323 50,962 50,756 49,719 7 Other 47,584 47,792 51,143 50,632 48,932 47,863 50,827 49,728 52,551 8 All other foreigners 41,811 54,737 69,490 73,498 73,785 67,252 63,499 62,587 66,479 9 Claims of banks' domestic customers3 65,344 60,058 40,410 47,802 49,209 10 Deposits 15,280 15,452 9,619 14,022 12,579 11 Negotiable and readily transferable instruments4 37,125 31,474 17,155 20,340 23,031 12 Outstanding collections and other claims 12,939 13,132 13,636 13,440 13,599 MEMO 13 Customer liability on acceptances 8,974 8,655 7,871 7,564 8,031 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 43,024 36,213 22,854 22,085 21,901 20,603 20,098 22,238 21,751 n.a. 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data and to foreign branches, agencies, or wholly owned subsidiaries of the head office or are for quarter ending with month indicated. parent foreign bank. Reporting banks include all types of depository institution, as well as some brokers and 3. Assets held by reporting banks in the accounts of their domestic customers. dealers. 4. Principally negotiable time certificates of deposit and bankers acceptances. 2. For US. banks, includes amounts due from own foreign branches and foreign 5. Includes demand and time deposits and negotiable and nonnegotiable certificates of subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank deposit denominated in U.S. dollars issued by banks abroad. For description of changes in regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign data reported by nonbanks, see Federal Reserve Bulletin, vol. 65 (July 1979), p. 550. banks, consists principally of amounts due from the head office or parent foreign bank. 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 1994 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999900 11999911 11999922 Sept. Dec. Mar. June 1 Total 206,903 195,302 195,119 189,498 194,794 193,255 186,007 By borrower 2 Maturity of one year or less 165,985 162,573 163,325 161,953 166,244 166,385 160,424 3 Foreign public borrowers 19,305 21,050 17,813 21,211 17,458 15,896 12.603 4 All other foreigners 146,680 141,523 145,512 140,742 148,786 150,489 147,821 5 Maturity of more than one year 40,918 32,729 31,794 27,545 28,550 26,870 25,583 6 Foreign public borrowers 22,269 15,859 13,266 10,341 10,828 9,585 8,638 7 All other foreigners 18,649 16,870 18,528 17,204 17,722 17,285 16,945 By area Maturity of one year or less 8 Europe 49,184 51,835 53,300 57,240 56,300 58,786 50,907 9 Canada 5,450 6,444 6,091 9,819 7,542 7,291 8,155 10 Latin America and Caribbean 49,782 43,597 50,376 51,561 56,624 58,717 56,618 11 Asia 53,258 51,059 45,709 37,642 40,287 36,007 38,314 12 Africa 3,040 2,549 1,784 1,916 1,783 1,603 1,797 13 All other3 5,272 7,089 6,065 3,775 3,708 3,981 4,633 Maturity of more than one year 14 Europe 3,859 3,878 5,367 4,433 4,327 3,822 3,316 15 Canada 3,290 3,595 3,287 2,549 2,553 2,548 2,496 16 Latin America and Caribbean 25,774 18,277 15,312 13,353 13,877 13,341 12,691 17 Asia 5,165 4,459 5,038 4,732 5,412 4,709 4,795 18 Africa 2,374 2,335 2,380 2,049 1,934 2,001 1,850 19 All other3 456 185 410 429 447 449 435 1. Reporting banks include all kinds of depository institutions besides commercial 2. Maturity is time remaining to maturity, 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 • January 1995 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1992 1993 1994 AArreeaa oorr ccoouunnttrryy 11999900 11999911 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 320.1 343.6 358.7 344.5 346.5 361.0 377.0 388.3 403.7 488.9* 4953r 2 G-10 countries and Switzerland 132.2 137.6 135.6 136.0 132.9 142.4 150.0 153.3 161.0 178.0 165.6r 3 Belgium and Luxembourg .0 6.0 6.2 6.2 5.6 6.1 7.0 7.1 7.4 7.9 8.6 4 France 10.4 11.0 11.9 15.3 15.3 13.5 14.0 12.3 11.7 16.4 18.8r 5 Germany 10.6 8.3 8.8 10.9 9.3 9.9 10.8 12.4 12.6 28.7 24.3 6 Italy 5.0 5.6 8.0 6.4 6.5 6.7 7.9 8.7 7.6 15.5 14.0 7 Netherlands .0 4.7 3.3 3.7 2.8 3.6 3.7 3.7 4.7 4.1 3.6 8 Sweden 2.2 1.9 1.9 2.2 2.3 3.0 2.5 2.5 2.5 2.8 2.9 9 Switzerland 4.4 3.4 4.6 5.2 4.8 5.3 4.7 5.6 5.9 6.3 6.5 10 United Kingdom 60.9 68.5 65.6 61.0 60.8 65.7 73.5 74.7 84.5 69.8 57.7r 11 Canada 5.9 5.8 6.5 6.3 6.3 8.2 8.0 9.7 6.6 7.6 9.5r 12 Japan 24.0 22.6 18.7 18.9 19.3 20.4 17.9 16.8 17.4 18.8 19.6r 13 Other industrialized countries 22.9 22.8 25.5 25.0 24.0 25.4 27.2 26.0 24.6 41.2 43.2r 14 Austria 1.4 .6 .8 .7 1.2 1.2 1.3 .6 .4 1.0 1.0 15 Denmark 1.1 .9 1.3 1.5 .9 .8 1.0 1.1 1.0 1.1 1.1 16 Finland .7 .7 .8 1.0 .7 .7 .9 .6 .4 1.0 .8r 17 Greece 2.7 2.6 2.8 3.0 3.0 2.7 3.1 3.2 3.2 3.8 4.6 18 Norway 1.6 1.4 1.7 1.6 1.2 1.8 1.8 2.1 1.7 1.6 1.6 19 Portugal .6 .6 .5 .5 .4 .7 .9 1.0 .8 1.2 1.1 20 Spain 8.3 8.3 10.1 9.7 8.9 9.5 10.5 9.3 8.9 12.3 13.2 21 Turkey 1.7 1.4 1.5 1.5 1.3 1.4 2.1 2.1 2.1 2.4 2.1 22 Other Western Europe 1.2 1.8 2.0 1.5 1.7 2.0 1.7 2.2 2.6 3.0 2.8 23 South Africa 1.8 1.9 1.7 1.7 1.7 1.6 1.3 1.2 1.1 1.2 1.2 24 Australia 1.8 2.7 2.2 2.3 2.9 2.9 2.5 2.8 2.3 12.7 13.7 25 OPEC2 12.8 14.5 16.2 15.9 16.1 16.6 15.7 14.8 16.7 22.4r 21.5 26 Ecuador 1.0 .7 .7 .7 .6 .6 .6 .5 .5 .5 .5 27 Venezuela 5.0 5.4 5.3 5.4 5.2 5.1 5.5 5.4 5.1 4.7 4.4 28 Indonesia 2.7 2.7 3.0 3.0 3.0 3.1 3.1 2.8 3.2 3.4r 3.2 29 Middle East countries 2.5 4.2 5.9 5.4 6.2 6.6 5.4 4.9 6.7 12.8 12.4 30 African countries 1.7 1.5 1.4 1.4 1.1 1.1 1.1 1.1 1.2 1.0 1.1 31 Non-OPEC developing countries 65.4 63.9 68.1 72.8 72.1 74.4 76.6 77.0 82.5 93.4r 93.91 Latin America 32 Argentina 5.0 4.8 5.1 6.2 6.6 7.0 6.6 7.2 7.7 8.7 9.8 33 Brazil 14.4 9.6 10.6 10.8 10.8 11.6 12.3 11.7 12.0 12.5 11.8 34 Chile 3.5 3.6 4.0 4.2 4.4 4.6 4.6 4.7 4.7 5.1 5.1 35 Colombia 1.8 1.7 1.6 1.7 1.8 1.9 1.9 2.0 2.1 2.2 2.4 36 Mexico 13.0 15.5 16.3 17.1 16.0 16.8 16.8 17.5 17.7 18.7 18.3 37 Peru .5 .4 .4 .5 .5 .4 .4 .3 .4 .5 .6 38 Other 2.3 2.1 2.2 2.5 2.6 2.6 2.7 2.6 3.0 2.6 2.7 Asia China 39 Peoples Republic of China .2 .3 .3 .3 .7 .6 1.6 .5 2.0 .8 .7 40 Republic of China (Taiwan) 3.5 4.1 4.6 5.0 5.2 5.3 5.9 6.4 7.3 7.5 7.1 41 India 3.3 3.0 3.8 3.6 3.2 3.1 3.1 2.9 3.2 3.6r 3.7 42 Israel .5 .5 .4 .4 .4 .5 .4 .4 .5 .4 .4 43 Korea (South) 6.2 6.8 6.9 7.4 6.6 6.5 6.9 6.5 6.7 13.9 14. lr 44 Malaysia 1.9 2.3 2.7 3.0 3.1 3.4 3.7 4.1 4.4 5.2 5.2 45 Philippines 3.8 3.7 3.1 3.6 3.6 3.4 2.9 2.6 3.1 3.4 3.2 46 Thailand 1.5 1.7 1.9 2.2 2.2 2.2 2.4 2.8 3.1 2.9 3.3 47 Other Asia 1.7 2.0 2.5 2.7 2.7 2.7 2.6 3.0 2.9 3.1 3.5 Africa 48 Egypt .4 .4 .5 .3 .2 .2 .2 .2 .4 .4 .5 49 Morocco .8 .7 .7 .6 .6 .5 .6 .6 .6 .7 .7 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.0 .7 .6 .9 1.0 .8 .9 .8 .8 1.0 .9 52 Eastern Europe 2.3 2.4 3.0 3.1 3.1 2.9 3.2 3.0 3.0 3.3 3.01 53 Russia4 .2 .9 1.7 1.8 1.9 1.7 1.9 1.7 1.6 1.5 1.2 54 Yugoslavia5 1.2 .9 .7 .7 .6 .6 .6 .6 .6 .5 .5 55 Other .9 .7 .6 .7 .6 .7 .7 .7 .9 1.4 1.4r 56 Offshore banking centers 44.7 54.2 61.4 54.5 58.3 60.2 58.0 67.9 72.5 78.3r 76.6r 57 Bahamas 2.9 11.9 12.9 8.9 6.9 9.7 7.1 12.7 12.6 15.4 13.5 58 Bermuda 4.4 2.3 5.1 3.8 6.2 4.1 4.5 5.5 8.1 8.4 6.1 59 Cayman Islands and other British West Indies 11.7 15.8 19.3 16.9 21.8 17.6 15.6 15.1 16.9 17.2 2o. r 60 Netherlands Antilles 7.9 1.2 .8 .7 1.1 1.6 2.5 2.8 2.3 2.7 2.4 61 Panama6 1.4 1.4 1.9 2.0 1.9 2.0 2.1 2.1 2.4 2.0 1.9 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 9.7 14.4 14.9 15.2 13.8 16.7 16.9 19.1 18.7 19.7r 21.8 64 Singapore 6.6 7.1 6.4 6.8 6.5 8.4 9.3 10.4 11.2 12.7 10.6 65 Other' .0 .0 .0 .0 .0 .0 .0 .0 .1 .0 .0 66 Miscellaneous and unallocated8 39.9 48.0 48.6 36.8 39.7 38.8 46.2 46.3 43.3 72.0r 91.0* 1. The banking offices covered by these data include US. offices and foreign branches United Arab Emirates); and Bahrain and Oman (not formally members of OPEC). of U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not 3. Excludes Liberia. Beginning March 1994 includes Namibia. covered include U.S. agencies and branches of foreign banks. Beginning March 1994, the 4. As of December 1992, excludes other republics of the former Soviet Union. data include large foreign subsidiaries of U.S. banks. The data also include other types of 5. As of December 1992, excludes Croatia, Bosnia and Hercegovinia, and Slovenia. U.S. depository institutions as well as some types of brokers and dealers. To eliminate 6. Includes Canal Zone. duplication, the data are adjusted to exclude the claims on foreign branches held by a U.S. 7. Foreign branch claims only. office or another foreign branch of the same banking institution. 8. Includes New Zealand, Liberia, and international and regional 2. Organization of Petroleum Exporting Countries, shown individually; other members organizations. of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and 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 1993 1994 Type of liability, and area or country 11999900 11999911 11999922 Mar. June Sept. Dec. Mar. June" 1 Total 46,043 44,708 45,260 46,170 46,514 48,524 49,136 51,740 55316 2 Payable in dollars 40,786 39,029 37,276 37,896 37,027 39,311 37,880 38,115 42,463 3 Payable in foreign currencies 5,257 5,679 7,984 8,274 9,487 9,213 11,256 13,625 12,853 By type 4 Financial liabilities 21,066 22,518 23,590 24,239 25,100 26,731 28,254 30,111 33,277 5 Payable in dollars 16,979 18,104 16,780 17,178 16,935 18,705 18,175 18,481 22,424 6 Payable in foreign currencies 4,087 4,414 6,810 7,061 8,165 8,026 10,079 11,630 10,853 7 Commercial liabilities 24,977 22,190 21,670 21,931 21,414 21,793 20,882 21,629 22,039 8 Trade payables 10,683 9,252 9,566 9,684 9,370 9,226 8,800 8,956 9,855 9 Advance receipts and other liabilities ... 14,294 12,938 12,104 12,247 12,044 12,567 12,082 12,673 12,184 10 Payable in dollars 23,807 20,925 20,496 20,718 20,092 20,606 19,705 19,634 20,039 11 Payable in foreign currencies 1,170 1,265 1,174 1,213 1,322 1,187 1,177 1,995 2,000 By area or country Financial liabilities 12 Europe 10,978 12,003 13,207 13,567 14,199 16,445 18,185 20,293 23,564 13 Belgium and Luxembourg 394 216 414 306 268 278 175 525 503 14 France 975 2,106 1,623 1,625 2,219 2,077 2,326 2,589 1,590 15 Germany 621 682 889 899 863 855 975 1,214 939 16 Netherlands 1,081 1,056 606 639 585 573 534 564 533 17 Switzerland 545 408 569 503 491 378 634 1,200 631 18 United Kingdom 6,357 6,528 8,430 9,035 9,118 11,694 12,925 13,595 18,151 19 Canada 229 292 544 604 493 663 859 508 698 20 Latin America and Caribbean 4,153 4,784 4,053 4,299 4,199 3,719 3,359 3,553 3,282 21 Bahamas 371 537 379 626 476 1,301 1,148 1,157 1,052 22 Bermuda 0 114 114 114 124 114 0 120 115 23 Brazil 0 6 19 18 18 18 18 18 18 24 British West Indies 3,160 3,524 2,850 2,865 2,901 1,600 1,533 1,613 1,454 25 Mexico 5 7 12 13 11 15 17 14 13 26 Venezuela 4 4 6 5 5 5 5 5 5 27 Asia2 5,295 5,381 5,747 5,703 6,039 5,754 5,689 5,601 5,694 28 Japan 4,065 4,116 4,679 4,692 4,857 4,725 4,620 4,589 4,760 29 Middle Eastern oil-exporting countries^ 5 13 19 24 19 23 23 24 24 30 Africa 2 6 6 6 130 132 133 133 9 0 4 0 0 123 124 123 124 0 31 Oil-exporting countries4 409 52 33 60 40 18 29 23 30 32 All other5 Commercial liabilities 10,310 8,701 7,398 6,992 6,807 7,051 6,825 6,549 6,903 33 Europe 275 248 298 264 269 257 240 253 254 34 Belgium and Luxembourg 1,218 1,039 700 707 775 643 648 554 711 35 France 1,270 1,052 729 650 603 571 684 577 669 36 Germany 844 710 535 537 577 601 687 628 642 37 Netherlands 775 575 350 472 441 536 375 387 472 38 Switzerland 2,792 2,297 2,505 2,119 2,186 2,319 2,051 2,156 2,309 39 United Kingdom 40 Canada 1,261 1,014 1,002 1,005 942 847 883 1,039 1,062 41 Latin America and Caribbean 1,672 1,355 1,533 1,776 1,828 1,759 1,661 1,911 2,004 42 Bahamas 12 3 3 11 6 4 21 8 2 43 Bermuda 538 310 307 429 356 340 348 493 416 44 Brazil 145 219 209 236 226 214 216 211 217 45 British West Indies 30 107 33 34 16 36 26 19 23 46 Mexico 475 307 457 553 659 577 485 557 705 47 Venezuela 130 94 142 171 172 173 126 150 194 48 Asia2 9,483 9,334 10,594 10,757 10,520 10,916 10,458 10,906 10,898 49 Japan 3,651 3,721 3,612 3,709 3,390 3,726 3,951 4,613 4,385 50 Middle Eastern oil-exporting countries- 2,016 1,498 1,889 1,796 1,815 1,968 1,525 1,533 1,813 51 Africa 844 715 568 675 665 641 463 490 523 52 Oil-exporting countries4 422 327 309 322 378 320 171 199 247 53 Other5 1,406 1,071 575 726 652 579 592 734 649 1. For a description of the changes in the international statistics tables, see Federal 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Reserve Bulletin, vol. 65, (July 1979), p. 550. Emirates (Trucial States). 2. Revisions include a reclassification of transactions, which also affects the totals for 4. Comprises Algeria, Gabon, Libya, and Nigeria. Asia and the grand totals. 5. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • January 1995 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1993 1994 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999900 11999911 11999922rr Mar. June Sept. Dec. Mar. Junep 1 Total 35,348 45,262 42,286 46,753 42,589 43,199 43,603 43,447 50,407 2 Payable in dollars 32,760 42,564 39,594 43,610 39,304 39,664 40,371 40,028 46,864 i Payable in foreign currencies 2,589 2,698 2,692 3,143 3,285 3,535 3,232 3,419 3,543 By type 4 Financial claims 19,874 27,882 23,822 26,833 22,656 24,212 23,656 23,324 29,632 5 Deposits 13,577 20,080 15,136 16,732 11,966 13,499 13,272 13,852 17,585 6 Payable in dollars 12,552 19,080 14,313 15,602 10,997 12,490 12,421 12,953 16,672 7 Payable in foreign currencies 1,025 1,000 823 1,130 969 1,009 851 899 913 8 Other financial claims 6,297 7,802 8,686 10,101 10,690 10,713 10,384 9,472 12,047 9 Payable in dollars 5,280 6,910 7,762 9,045 9,541 9,605 9,328 8,407 10,978 10 Payable in foreign currencies 1,017 892 924 1,056 1,149 1,108 1,056 1,065 1,069 11 Commercial claims 15,475 17,380 18,464 19,920 19,933 18,987 19,947 20,123 20,775 12 Trade receivables 13,657 14,468 15,907 17,566 17,450 16,009 17,003 17,285 18,004 13 Advance payments and other claims 1,817 2,912 2,557 2,354 2,483 2,978 2,944 2,838 2,771 14 Payable in dollars 14,927 16,574 17,519 18,963 18,766 17,569 18,622 18,668 19,214 15 Payable in foreign currencies 548 806 945 957 1,167 1,418 1,325 1,455 1,561 By area or country Financial claims 16 Europe 9,645 13,441 9,331 10,405 9,744 8,384 8,095 7,347 8,085 17 Belgium and Luxembourg 76 13 8 67 74 70 131 122 83 18 France 371 269 764 905 781 708 785 753 899 19 Germany 367 283 326 388 383 362 472 441 417 20 Netherlands 265 334 515 544 499 485 502 503 480 21 Switzerland 357 581 490 478 494 512 515 520 495 22 United Kingdom 7,971 11,534 6,252 6,991 6,579 5,230 4,527 3,916 4,638 23 Canada 2,934 2,642 1,716 2,013 1,805 1,627 1,870 2,508 3,546 24 Latin America and Caribbean 6,201 10,717 11,323 10,298 7,349 10,741 11,314 10,388 15,291 25 Bahamas 1,090 827 658 320 762 580 496 502 1,215 26 Bermuda 3 8 40 79 258 197 125 34 65 27 Brazil 68 351 686 592 590 590 599 567 359 28 British West Indies 4,635 9,056 9,297 8,397 4,803 8,176 8,759 8,143 12,855 29 Mexico 177 212 445 656 665 882 865 782 473 30 Venezuela 25 40 29 23 24 25 161 26 33 31 860 640 864 3,362 3,016 2,756 1,801 2,626 2,246 32 Japan 523 350 668 3,123 2,485 2,215 1,063 1,762 1,360 33 Middle Eastern oil-exporting countries2 8 5 3 3 10 5 3 5 2 34 Africa 37 57 83 128 125 88 99 76 74 35 Oil-exporting countries3 0 1 9 1 1 1 1 0 1 36 All other4 195 385 505 627 617 616 477 379 390 Commercial claims 37 Europe 7,044 8,193 8,351 8,800 8,968 8,088 8,764 8,407 8,563 38 Belgium and Luxembourg 212 194 189 170 173 163 185 174 179 39 France 1,240 1,585 1,537 1,492 1,511 1,438 1,943 1,817 1,761 40 Germany 807 955 933 1,025 1,046 935 997 923 920 41 Netherlands 555 645 552 734 565 410 417 351 287 42 Switzerland 301 295 362 437 442 376 424 404 642 43 United Kingdom 1,775 2,086 2,094 2,363 2,562 2,288 2,252 2,219 2,338 44 Canada 1,074 1,121 1,286 1,334 1,359 1,360 1,356 1,465 1,451 45 Latin America and Caribbean 2,375 2,655 3,043 3,474 3,456 3,071 3,207 3,499 3,801 46 Bahamas 14 13 28 18 17 20 11 12 17 47 Bermuda 246 264 255 195 239 225 173 210 285 48 Brazil 326 427 357 836 788 407 462 423 494 49 British West Indies 40 41 40 17 43 39 70 58 66 50 Mexico 661 842 924 998 913 866 945 985 1,000 51 Venezuela 192 203 345 349 317 286 295 290 303 52 4,127 4,591 4,866 5,430 5,220 5,538 5,623 5,763 6,028 53 Japan 1,460 1,899 1,903 2,163 1,885 2,519 2,142 2,338 2,326 54 Middle Eastern oil-exporting countries2 460 620 693 773 673 456 657 654 601 55 Africa 488 430 554 463 516 493 492 512 484 56 Oil-exporting countries3 67 95 78 75 99 107 71 101 90 57 Other4 367 390 364 419 414 437 505 477 448 1. For a description of the changes in the international statistics tables, see Federal 3. Comprises Algeria, Gabon, Libya, and Nigeria. 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

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Securities Holdings and Transactions A63 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1994 1994 Transaction, and area or country 1992 1993 Jan.- Mar. Apr. May June July Aug. Sept.p Sept. US. corporate securities STOCKS 1 Foreign purchases 221,367 319,728 270,471 36,535 29,853 26,699 28,349 24,332 29,312 28,725 2 Foreign sales 226,503 298,145 264,690 36,290 31,654 25,113 30,249 25,174 26,400 30,136 3 Net purchases, or sales (—) -5,136 21,583 5,781 245 -1,801 1,586 -1,900 -842 2,912 -1,411 4 Foreign countries -5,169 21,311 5,828 247 -1,799 1,569 -1,891 -846 2,914 -1,425 S Europe -4,927 10,665 9,407 1,243 803 1,219 -378 -291 1,424 -1,011 6 France -1,350 -103 124 82 -83 210 -241 -68 -22 -63 7 Germany -80 1,647 2,732 332 252 398 119 56 73 -108 8 Netherlands -262 -600 1,249 -155 82 176 89 357 266 55 9 Switzerland 168 2,986 1,230 79 174 30 74 82 136 -104 10 United Kingdom -3,301 4,560 1,893 584 230 174 -322 -830 866 -638 11 Canada 1,407 -3,213 -728 -59 290 156 -529 -313 -366 63 17 Latin America and Caribbean 2,203 5,724 -1,193 -31 -1,862 -207 -839 -476 989 -625 N Middle East' -88 -328 -917 64 4 49 -111 -94 -281 -431 14 Other Asia -3,943 8,198 -1,424 -1,175 -1,191 476 -143 280 1,031 588 IS Japan -3,598 3,825 931 -117 -658 335 171 555 1,132 760 16 Africa 10 63 47 13 33 -1 6 -7 0 10 17 Other countries 169 202 636 192 124 -123 103 55 117 -19 18 Nonmonetary international and regional organizations 33 272 -47 -2 -2 1177 -9 4 -2 1144 BONDS2 19 Foreign purchases 214,922 283,800 230,280 30,717 29,756 24,955 31,789 25,166 22,963r 19,038 20 Foreign sales 175,842 217,943 184,618 25,265 27,473 20,868 21,123 18,898 15,686 17,625 21 Net purchases, or sales (—) 39,080 65,857 45,662 5,452 2,283 4,087 10,666 6,268 7,277' 1,413 22 Foreign countries 37,964 65,319 45,050 5,365 2,298 4,025 10,538 5,883 7,344' 13% 73 Europe 17,435 22,429 27,465 2,982 346 528 6,031 4,531 5,152r 2,325 74 France 1,203 2,346 240 32 181 -3 47 21 -18 -16 71 Germany 2,480 885 -453 -64 83 -244 52 52 34 -355 76 Netherlands 540 -290 2,521 330 216 358 868 29 610 -64 77 Switzerland -579 -627 546 131 -189 136 144 -192 -9 292 78 United Kingdom 12,421 19,529 25,778 3,343 556 894 5,624 4,409 4,497r 1,916 79 Canada 237 1,668 1,895 -17 -16 286 422 625 519 194 30 Latin America and Caribbean 9,300 15,697 4,099 1,848 873 762 1,553 -527 -81 -1,831 31 Middle East1 3,166 3,257 979 59 7 17 339 375 157r -53 37 Other Asia 7,545 20,846 9,974 417 903 2,287 2,177 766 1,558 716 33 Japan -450 11,569 4,979 -363 523 1,575 1,396 712 763 431 34 Africa 354 1,149 20 -10 55 10 9 -23 18 2 35 Other countries -73 273 618 86 130 135 7 136 21 43 36 Nonmonetary international and regional organizations 1,116 538 612 87 -15 6622 112288 338855 --6677 1177 Foreign securities 37 Stocks, net purchases, or sales (—) -32,259 -63,340 -34,814 -6,527 -1,940 -4,028 -6,715 -3,093' — 1,258r 691 38 Foreign purchases 150,051 245,527 303,601 37,088 33,083 30,946 31,098 29,291 33,840" 37,346 39 Foreign sales3 182,310 308,867 338,415 43,615 35,023 34,974 37,813 32,384r 35,098r 36,655 40 Bonds, net purchases, or sales (—) -15,605 -69,471 -13,553 5,975 -5,565 -147 427 —2,202r 1,360* -800 41 Foreign purchases 513,589 829,871 703,014 120,450 69,086 64,158 71,762 59,351 67,262r 78,733 42 Foreign sales 529,194 899,342 716,567 114,475 74,651 64,305 71,335 61,553' 65,902r 79,533 43 Net purchases, or sales (-), of stocks and bonds .... -47,864 -132,811 -48,367 -552 -7,505 -4,175 -6,288 —5,295' 102' -109 44 Foreign countries —51,274 -132,972 -48,329 -529 -7,461 -4,462 -6,281 -5,477' -81' 418 45 -31,350 -89,390 -3,013 8,157 -40 -1,291 4,268 -2,410 -179" -2,906 46 -6,893 -14,997 -7,274 456 -412 436 -769 -2,041 -600 865 47 Latin America and Caribbean -4,340 -9,229 -13,904 -2,836 -6,602 -2,421 -4,997 — l,437r l,528r 5,163 48 -7,923 -15,303 -20,996 -6,718 -117 -528 -4,309 339r —321' -1,912 49 -13 -185 -187 -120 -31 -4 -45 29 48 -22 50 Other countries -755 -3,868 -2,955 532 -259 -654 -429 43 -557 -770 51 Nonmonetary international and regional organizations 3,410 161 -38 -23 -44 287 -7 118822 118833 --552277 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). corporations organized to finance direct investments abroad. 2. Includes state and local government securities and securities of US. government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A137 International Statistics • January 1995 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (—) during period 1994 1994 AArreeaa oorr ccoouunnttrryy 11999922 11999933rr Jan.- Mar. Apr. May June July Aug.' Sept.p Sept. 1 Total estimated 39,288 23,401 42,357 -1,240 -13,607 19,778 —5,353 1,710" 15,103 11,093 2 Foreign countries 37,935 23,175 43,155 -1,200 -12,879 19,727 -4,901 2,043r 14,687 11,167 3 Europe 19,625 -2,403 23,833 2,342 -5,356 8,772 -2,702 4,891' 8,264 3,921 4 Belgium and Luxembourg 1,985 1,218 556 269 -175 147 -170 -78 529 -31 5 Germany 2,076 -9,975 4,766 -729 -465 2,279 143 714 1,795 -243 6 Netherlands -2,959 -515 304 -971 187 21 560 120 -15 -68 7 Sweden -804 1,421 559 34 -154 150 257 100 -158 105 8 Switzerland 488 -1,501 1,969 1,385 3 -211 158 -416 -259 441 9 United Kingdom 24,184 6,167 10,555 723 -3,910 4,955 -5,562 4,820 5,361 3,522 10 Other Europe and former U.S.S.R -5,345 782 5,124 1,631 -842 1,431 1,912 -369' 1,011 195 11 Canada 562 10,309 5,457 542 -1,662 98 -11 2,937 1,838 1,515 12 Latin America and Caribbean -3,222 -4,572 -18,222 -3,428 -6,002 -2,652 -7,080 -7,273 -2,310 -666 13 Venezuela 539 390 -411 93 -146 -130 -9 17 -132 19 14 Other Latin America and Caribbean -1,956 -5,806 -17,593 -4,204 -6,911 -2,708 -6,744 -7,663 3,172 1,487 15 Netherlands Antilles -1,805 844 -218 683 1,055 186 -327 373 -5,350 -2,172 16 Asia 23,517 20,531 33,285 151 403 13,286 5,128 2,522 5,990 6,766 17 Japan 9,817 17,070 20,776 2,914 2,976 8,185 5,099 -812 3,681 3,210 18 Africa 1,103 1,156 58 -18 59 -29 16 5 80 200 19 Other -3,650 -1,846 -1,256 -789 -321 252 -252 -1,039 825 -569 20 Nonmonetary international and regional organizations 1,353 226 -798 -40 -728 51 -452 -333 416 -74 21 International 1,018 -279 -767 5 -724 70 -395 -425 317 -61 22 Latin American regional 533 654 68 -37 21 -111 54 23 -4 -1 MEMO 23 Foreign countries 37,935 23,175 43,155 -1,200 -12,879 19,727 -4,901 2,043' 14,687 11,167 24 Official institutions 6,876 1,272 34,737 -5,051 -640 11,253 2,679 4,897' 8,551 4,719 25 Other foreign2 31,059 21,903 8,418 3,851 -12,239 8,474 -7,580 -2,854 6,136 6,448 Oil-exporting countries 26 Middle East2 4,317 -8,836 -642 33 144 -342 -495 12 621 3 27 Africa 11 -5 1 0 0 0 0 0 1 0 1. Official and private transactions in marketable U.S. Treasury securities having an 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab original maturity of more than one year. Data are based on monthly transactions reports. Emirates (Trucial States). Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of 3. Comprises Algeria, Gabon, Libya, and Nigeria. 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, averages of daily figures Rate on Nov. 31, 1994 Rate on Nov. 31, 1994 Rate on Nov. 31, 1994 Country Country Country Month Month effective effective Month effective Austria.. 4.5 May 1994 Germany... 4.5 May 1994 Norway 4.75 Feb. 1994 Belgium. 4.5 May 1994 Italy 7.5 Aug. 1994 Switzerland .... 3.5 Apr. 1994 Canada.. 6.04 Nov, 1994 Japan 1.75 Sept. 1993 United Kingdom 12.0 Sept. 1992 Denmark 5.0 May 1994 Netherlands 4.5 May 1994 France2 . 5.0 July 1994 1. Rates shown are mainly those at which the central bank either discounts or makes 2. Since February 1981, the rate has been that at which the Bank of France discounts advances against eligible commercial paper or government securities for commercial Treasury bills for seven to ten days. 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 1994 TTyyppee oorr ccoouunnttrryy 11999911 11999922 11999933 May June July Aug. Sept. Oct. Nov. 5.86 3.70 3.18 4.51 4.51 4.74 4.80 5.01 5.52 5.78 11.47 9.56 5.88 5.13 5.13 5.15 5.47 5.65 5.83 5.98 9.07 6.76 5.14 6.38 6.50 6.28 5.71 5.61 5.56 5.77 9.15 9.42 7.17 5.07 4.95 4.86 4.89 4.95 5.12 5.10 8.01 7.67 4.79 3.94 4.21 4.17 4.21 4.00 4.02 3.86 9.19 9.25 6.73 5.04 4.95 4.84 4.88 4.98 5.12 5.15 9.49 10.14 8.30 5.52 5.44 5.51 5.46 5.50 5.52 5.49 8 Italy 12.04 13.91 10.09 7.76 8.04 8.39 8.88 8.68 8.80 8.72 9.30 9.31 8.10 5.27 5.33 5.53 5.47 5.34 5.15 5.09 7.33 4.39 2.96 2.17 2.12 2.14 2.28 2.31 2.33 2.33 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

A139 International Statistics • January 1995 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1994 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999911 11999922 11999933 June July Aug. Sept. Oct. Nov. 1 Australia/dollar^ 77.872 73.521 67.993 73.291 73.409 74.010 74.200 73.787 75.492 2 Austria/schilling 11.686 10.992 11.639 11.446 11.027 11.010 10.904 10.695 10.838 3 Belgium/franc 34.195 32.148 34.581 33.514 32.315 32.248 31.871 31.284 31.694 4 Canada/dollar 1.1460 1.2085 1.2902 1.3836 1.3826 1.3783 1.3540 1.3503 1.3647 5 China, P.RVyuan 5.3337 5.5206 5.7795 8.6836 8.6605 8.6072 8.5581 8.5492 8.5370 6 Denmark/krone 6.4038 6.0372 6.4863 6.3786 6.1581 6.1845 6.1038 5.9479 6.0268 7 Finland/markka 4.0481' 4.4865 5.7251 5.4241 5.1996 5.1493 4.9689 4.6866 4.7388 8 France/franc 5.6468 5.2935 5.6669 5.5597 5.3702 5.3602 5.2975 5.2025 5.2867 9 Germany/deutsche mark 1.6610 1.5618 1.6545 1.6271 1.5674 1.5646 1.5491 1.5195 1.5396 10 Greece/drachma 182.63 190.81 229.64 244.77 236.92 237.11 235.98 233.06 237.38 11 Hong Kong/dollar 7.7712 7.7402 7.7357 7.7309 7.7265 7.7272 7.7275 7.7276 7.7306 12 India/rupee 22.712 28.156 31.291 31.385 31.376 31.373 31.372 31.373 31.394 13 Ireland/pound2 161.39 170.42 146.47 149.54 152.79 152.22 154.61 158.64 156.39 14 Italy/lira 1,241.28 1,232.17 1,573.41 1,592.22 1,562.31 1,582.15 1,565.79 1,548.29 1,583.81 15 Japan/yen 134.59 126.78 111.08 102.53 98.44 99.94 98.77 98.35 98.04 16 Malaysia/ringgit 2.7503 2.5463 2.5738 2.5942 2.5948 2.5633 2.5575 2.5589 2.5604 17 Netherlands/guilder, 1.8720 1.7587 1.8585 1.8242 1.7585 1.7570 1.7372 1.7028 1.7261 18 New Zealand/dollar2 57.832 53.792 54.127 59.121 60.063 60.119 60.297 60.898 62.093 19 Norway/krone 6.4912 6.2142 7.0979 7.0686 6.8560 6.8644 6.7961 6.6166 6.7297 20 Portugal/escudo 144.77 135.07 161.08 168.76 160.98 159.80 157.91 155.26 157.27 21 Singapore/dollar 1.7283 1.6294 1.6158 1.5310 1.5137 1.5045 1.4885 1.4761 1.4682 22 South Africa/rand 2.7633 2.8524 3.2729 3.6318 3.6705 3.5968 3.5570 3.5420 3.5256 23 South Korea/won 736.73 784.66r 805.75 809.86 808.39 806.83 803.69 801.98 799.46 24 Spain/peseta 104.01 102.38 127.48 134.23 129.31 129.90 128.41 126.34 128.34 25 Sri Lanka/rupee 41.200 44.013 48.21 lr 49.232 49.010 49.241 49.260 49.112 49.163 26 Sweden/krona 6.0521 5.8258 7.7956 7.7968 7.7471 7.7420 7.5227 7.2631 7.3637 27 Switzerland/franc 1.4356 1.4064 1.4781 1.3727 1.3239 1.3184 1.2892 1.2648 1.2956 28 Taiwan/dollar 26.759 25.160 26.416 27.018 26.658 26.419 26.210 26.132 26.188 29 Thailand/baht 25.528 25.411 25.333 25.137 24.977 25.021 24.968 25.001r 24.992 30 United Kingdom/pound2 176.74 176.63 150.16 152.62 154.67 154.22 156.61 160.64 158.92 MEMO 31 United States/dollar3 89.84 86.61 93.18 91.60 89.06 89.26 88.08 86.66 87.71 1. Averages of certified noon buying rates in New York for cable transfers. Data in this world trade of that country divided by the average world trade of all ten countries table also appear in the Board's G.5 (405) monthly statistical release. For ordering combined. Series revised as of August 1978 (see Federal Reserve Bulletin, vol. 64 address, see inside front cover. (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 the 1972-76 average Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases December 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 November 1993 February 1994 A76 February 1994 May 1994 A74 May 1994 August 1994 A68 August 1994 November 1994 A68 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1993 February 1994 A80 December 31, 1993 May 1994 A78 March 31, 1994 August 1994 A72 June 30, 1994 November 1994 A72 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

A74 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 Federal finance CAPACITY utilization, 46 Debt subject to statutory limitation, and types and ownership Capital accounts of gross debt, 30 Banks, by classes, 18 Receipts and outlays, 28, 29 Federal Reserve Banks, 11 Treasury financing of surplus, or deficit, 28 Central banks, discount rates, 65 Treasury operating balance, 28 Certificates of deposit, 26 Federal Financing Bank, 28, 33 Commercial and industrial loans Federal funds, 7, 19, 21, 22, 23, 26, 28 Commercial banks, 21 Federal Home Loan Banks, 33 Weekly reporting banks, 21-23 Federal Home Loan Mortgage Corporation, 33, 37, 38 Commercial banks Federal Housing Administration, 33, 37, 38 Assets and liabilities, 18-22 Federal Land Banks, 38 Commercial and industrial loans, 18-23 Consumer loans held, by type and terms, 39 Federal National Mortgage Association, 33, 37, 38 Deposit interest rates of insured, 16 Federal Reserve Banks Loans sold outright, 21 Condition statement, 11 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 38 U.S. government securities held, 5, 11, 12, 30 Time and savings deposits, 4 Federal Reserve credit, 5, 6, 11, 12 Commercial paper, 24, 26, 36 Federal Reserve notes, 11 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 33 Construction, 45,49 Finance companies Consumer installment credit, 39 Assets and liabilities, 36 Consumer prices, 45, 46 Business credit, 36 Consumption expenditures, 52, 53 Loans, 39 Corporations Paper, 24, 26 Nonfinancial, assets and liabilities, 35 Financial institutions, loans to, 21, 22, 23 Profits and their distribution, 35 Float, 5 Security issues, 34, 65 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

A74 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 Thrift institutions, 4. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 46 Time and savings deposits, 4, 14, 16, 18-23 Production, 46, 48 Trade, foreign, 54 Margin requirements, 27 Treasury cash, Treasury currency, 5 Member banks (See also Depository institutions) Treasury deposits, 5, 11, 28 Federal funds and repurchase agreements, 7 Treasury operating balance, 28 Reserve requirements, 9 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

A74 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD W. KELLEY, JR. ALAN S. BLINDER, Vice Chairman 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 THOMAS A. CONNORS, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board PETER HOOPER III, Assistant Director PORTIA W. THOMPSON, Equal Employment Opportunity KAREN H. JOHNSON, Assistant Director Programs Adviser CATHERINE L. MANN, 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 DAVID J. STOCKTON, Deputy Director KATHLEEN M. O'DAY, Associate General Counsel MARTHA BETHEA, Associate Director ROBERT DEV. FRIERSON, Assistant General Counsel WILLIAM R. JONES, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel MYRON L. KWAST, Associate Director PATRICK M. PARKINSON, Associate Director OFFICE OF THE SECRETARY THOMAS D. SIMPSON, Associate Director WILLIAM W. WILES, Secretary LAWRENCE SLIFMAN, Associate Director JENNIFER J. JOHNSON, Deputy Secretary MARTHA S. SCANLON, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary PETER A. TINSLEY, Deputy Associate Director FLINT BRAYTON, Assistant Director DIVISION OF BANKING DAVID S. JONES, Assistant Director SUPERVISION AND REGULATION STEPHEN A. RHOADES, Assistant Director RICHARD SPILLENKOTHEN, Director CHARLES S. STRUCKMEYER, Assistant Director STEPHEN C. SCHEMERING, Deputy Director ALICE PATRICIA WHITE, Assistant Director DON E. KLINE, Associate Director JOYCE K. ZICKLER, Assistant Director JOHN J. MINGO, Senior Adviser WILLIAM A. RYBACK, Associate Director GLENN B. CANNER, Adviser FREDERICK M. STRUBLE, Associate Director HERBERT A. BIERN, Deputy Associate Director DIVISION OF MONETARY AFFAIRS ROGER T. COLE, Deputy Associate Director JAMES I. GARNER, Deputy Associate Director DONALD L. KOHN, Director HOWARD A. AMER, Assistant Director DAVID E. LINDSEY, Deputy Director GERALD A. EDWARDS, JR., Assistant Director BRIAN F. MADIGAN, Associate Director JAMES D. GOETZINGER, Assistant Director RICHARD D. PORTER, Deputy Associate Director STEPHEN M. HOFFMAN, JR., Assistant Director VINCENT R. REINHART, Assistant Director LAURA M. HOMER, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board JAMES V. HOUPT, Assistant Director JACK P. JENNINGS, Assistant Director DIVISION OF CONSUMER MICHAEL G. MARTINSON, Assistant Director AND COMMUNITY AFFAIRS RHOGER H PUGH, Assistant Director GRIFFITH L. GARWOOD, Director SIDNEY M. SUSSAN, Assistant Director GLENN E. LONEY, Associate Director MOLLY S. WASSOM, Assistant Director DOLORES S. SMITH, Associate Director WILLIAM SCHNEIDER, Project Director, MAUREEN P. ENGLISH, Assistant Director National Information Center IRENE SHAWN MCNULTY, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAWRENCE B. LINDSEY JANET L. YELLEN 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 DAVID L. ROBINSON, Deputy Director (Finance and DIVISION OF HUMAN RESOURCES Control) MANAGEMENT LOUISE L. ROSEMAN, Associate Director DAVID L. SHANNON, Director CHARLES W. BENNETT, Assistant Director JOHN R. WEIS, Associate Director JACK DENNIS, JR., Assistant Director ANTHONY V. DIGIOIA, Assistant Director EARL G. HAMILTON, Assistant Director JOSEPH H. HAYES, JR., Assistant Director JEFFREY C. MARQUARDT, Assistant Director FRED HOROWITZ, Assistant Director JOHN H. PARRISH, Assistant Director FLORENCE M. YOUNG, Assistant Director OFFICE OF THE CONTROLLER OFFICE OF THE INSPECTOR GENERAL GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and BRENT L. BOWEN, Inspector General Budgets) DONALD L. ROBINSON, Assistant Inspector General DARRELL R. PAULEY, Assistant Controller (Finance) BARRY R. SNYDER, Assistant Inspector General 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

A72 Federal Reserve Bulletin • January 1995 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman ALAN S. BLINDER LAWRENCE B. LINDSEY MICHAEL H. MOSKOW THOMAS M. HOENIG THOMAS C. MELZER SUSAN M. PHILLIPS EDWARD W. KELLEY, JR. CATHY E. MINEHAN JANET L. YELLEN JOHN P. LAWARE ALTERNATE MEMBERS EDWARD G. BOEHNE ROBERT D. MCTEER GARY H. STERN JERRY L. JORDAN JAMES H. OLTMAN STAFF DONALD L. KOHN, Secretary and Economist MARVIN S. GOODFRIEND, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary DAVID E. LINDSEY, Associate Economist JOSEPH R. COYNE, Assistant Secretary FREDERIC S. MISHKIN, 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

A74 CONSUMER ADVISORY COUNCIL JAMES L. WEST, Tijeras, New Mexico, Chairman DOUGLAS D. BLANKE, St. Paul, Minnesota KATHARINE W. MCKEE, Durham, North Carolina ALVIN J. COWANS, Orlando, Florida ANNE B. SHLAY, Philadelphia, Pennsylvania MICHAEL FERRY, St. Louis, Missouri REGINALD J. SMITH, Kansas City, Missouri ELIZABETH G. FLORES, Laredo, Texas JOHN E. TAYLOR, Washington, D.C. NORMA L. FREIBERG, New Orleans, Louisiana LORRAINE VANETTEN, Troy, Michigan LORI GAY, Los Angeles, California GRACE W. WEINSTEIN, Englewood, New Jersey RONALD HOMER, Boston, Massachusetts LILY K. YAO, Honolulu, Hawaii THOMAS L. HOUSTON, Dallas, Texas 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, Newport Beach, 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 STAFF STUDIES: Only Summaries Printed in the 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM BULLETIN MORTGAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. Studies and papers on economic and financial subjects that are of general interest. Requests to obtain single copies of the full 163. CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MARtext or to be added to the mailing list for the series may be sent KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary to Publications Services. Ann Taylor. March 1992. 37 pp. 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by Staff Studies 1-157 are out of print. James T. Fergus and John L. Goodman, Jr. July 1993. 20 pp. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- 165. THE DEMAND FOR TRADE CREDIT: AN INVESTIGATION OF MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES, PRODUCTS, by Mark J. Warshawsky with the assistance of by Gregory E. Elliehausen and John D. Wolken. Septem- Dietrich Earnhart. September 1989. 23 pp. ber 1993. 18 pp. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSID- 166. THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET, IARIES OF BANK HOLDING COMPANIES, by Nellie Liang by Mark Carey, Stephen Prowse, John Rea, and Gregory and Donald Savage. February 1990.12 pp. Udell. January 1994. Ill pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by BANKING, 1980-93, AND AN ASSESSMENT OF THE "OPER- Gregory E. Elliehausen and John D. Wolken. September ATING PERFORMANCE" AND "EVENT STUDY" METHOD- 1990. 35 pp. OLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 1980-90, by Margaret Hastings Pickering. May 1991. 21 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 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

All 1-A 2-B 3-C 4-D 5_E Baltimore^ Pittsburgh wv , Cbariiig*. . f / • Cincinnati Buffalo ^ KY NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H 'Nashville Birmingham isville ATLANTA CHICAGO ST. LOUIS 9-1 MINNEAPOLIS 10-J 12-L ' AM Omaha* J MO ALASKA Denver Oklahoma City OK KANSAS CITY 11-K San Antonio { HAWAD DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 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 Cathy E. Minehan William C. Brainard Paul M. Connolly 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 Robert M. Healey Michael H. Moskow Richard G. Cline 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 Herman Cain Thomas M. Hoenig A. Drue Jennings Richard K. Rasdall Denver 80217 Sandra K. Woods Kent M. Scott1 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 James L. Stull1 SAN FRANCISCO 94120 Judith M. Runstad Robert T. Parry James A. Vohs 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