Federal Reserve Bulletin, 1995-11

VOLUME 81 • NUMBER 11 • NOVEMBER 1995 FEDERAL RESERVE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinion sexpressed 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 989 CREDIT RISK AND THE PROVISION status is unquestioned and provides the Con- OF MORTGAGES TO LOWER-INCOME gress with the opportunity to strengthen and AND MINORITY HOMEBUYERS rationalize our depository institutions, before the Subcommittee on Financial Institutions The institution that bears the credit risk in and Consumer Credit of the House Commitmortgage lending is critical because, without tee on Banking and Financial Services, Sepsuch an entity, a mortgage cannot be made; tember 21, 1995. but little information is available about the distribution of mortgage credit risk by insti- 1022 Chairman Greenspan offers his views on tution. Using data collected under the Home recent developments in economic conditions Mortgage Disclosure Act with data submit- and prospects for economic growth and inflated by private mortgage insurers about the tion and says that on the whole the near-term mortgages they insure, this article offers a prospects for the U.S. economy have rough gauge of the distribution of mortgage improved in recent months and that he is credit risk by institution for single-family impressed by the growing public recognition home purchase mortgages in 1994. It also of the importance of deficit reduction and the shows the distribution of such risk for loans commitment on the part of the President and grouped by the income and race or ethnic the Congress to bring the budget back into group of the borrower and by characteristics balance in the reasonably near future, before of the neighborhoods in which mortgage bor- the Senate Committee on Banking, Housing, rowers reside. and Urban Affairs, September 22, 1995. 1017 INDUSTRIAL PRODUCTION 1024 ANNOUNCEMENTS AND CAPACITY UTILIZATION Proposed amendments to Regulation M FOR SEPTEMBER 1995 (Consumer Leasing) as a result of the Industrial production declined 0.2 percent increased use of automobile leasing over the in September, to 122.6 percent of its 1987 past several years and the Board's review of average, after having gained 1.1 percent in Regulation M pursuant to its policy of peri- August. Capacity utilization declined 0.4 per- odically reviewing its regulations; also, a centage point, to 83.8 percent. proposed revision to Regulation K (International Banking Operations) to ease the burden on U.S. banks seeking to make invest- 1020 STATEMENTS TO THE CONGRESS ments in overseas companies. Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System, dis- 1025 MINUTES OF THE FEDERAL OPEN cusses the proposed legislation to recapital- MARKET COMMITTEE MEETING ize the Savings Association Insurance Fund HELD ON AUGUST 22, 1995 (SAIF), to merge SAIF and the Bank Insurance Fund (BIF), and to merge the thrift At its meeting on August 22,1995, the Cominstitution and the commercial bank charters mittee adopted a directive that called for and says that a merger of BIF with a recapi- maintaining the existing degree of pressure talized SAIF accomplishes the objective of on reserve positions and that did not include creating a deposit insurance system whose a presumption about the likely direction of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

any adjustments to policy during the inter- A67 GUIDE TO STATISTICAL RELEASES AND meeting period. SPECIAL TABLES 1033 LEGAL DEVELOPMENTS A76 INDEX TO STATISTICAL TABLES Various bank holding company, bank service A78 BOARD OF GOVERNORS AND STAFF corporation, and bank merger orders; and pending cases. A80 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A1 FINANCIAL AND BUSINESS STATISTICS A82 FEDERAL RESERVE BOARD These tables reflect data available as of PUBLICATIONS September 27, 1995. A84 MAPS OF THE FEDERAL RESERVE A3 GUIDE TO TABULAR PRESENTATION SYSTEM A4 Domestic Financial Statistics A45 Domestic Nonfinancial Statistics A86 FEDERAL RESERVE BANKS, BRANCHES, A53 International Statistics AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages to Lower-Income and Minority Homebuyers Glenn B. Canner and Wayne Passmore, of the of which institutions bear the credit risk of mort- Board's Division of Research and Statistics, wrote gages. In addition, because of the strong public this article. Mark A. Peirce, of the Division of interest in the provision of credit to lower-income Research and Statistics, and Gary G. Myers and and minority homebuyers, we have measured the Keith Phipps, of the Division of Information distribution of credit risk across institutions by the Resources Management, provided assistance. income and race or ethnic group of the borrower and by characteristics of the neighborhoods in A core function of mortgage lenders, as of other which mortgage borrowers reside.1 financial businesses, is the measurement, acceptance, and management of risk. The key risk for mortgage lenders is credit risk, which arises from MORTGAGE UNDERWRITING the possibility that borrowers may fail to pay their AND MITIGATION OF CREDIT RISK loan obligations as scheduled. The institution that bears the credit risk in mortgage lending is critical When scheduled payments on a mortgage are not because, without such a participant, a mortgage made, a lender typically does not know whether the cannot be made. borrower intends to delay payments only tempo- The credit risk associated with a mortgage is rarily or to stop them altogether. The borrower is accommodated through a variety of financial considered "delinquent," but the lender's initial arrangements and institutions. Some institutions, expectation is that the payments will resume. If such as mortgage companies, mainly originate scheduled payments continue to be missed, the loans for sale to third parties. To facilitate this lender may perceive that the borrower does not process, mortgage companies often transfer to a intend, or is unable, to repay the loan fully. mortgage insurer much or all of the credit risk A lender may take actions against a delinquent associated with holding the loans, thereby reducing borrower by imposing late fees and, in cases of the loss the loan purchaser would suffer in the numerous missed payments, by foreclosing on the event of default by a borrower. Other institutions, mortgage and forcing a sale of the property securmainly depositories, keep in their portfolios many ing the loan. But foreclosure is ordinarily quite of the loans they originate. Like a purchaser of costly to the lender, who can expect to incur a mortgages, however, a depository institution that variety of expenses during the process: interest holds a mortgage may not bear the full risk of accrued from the time of delinquency through foredefault associated with it but may instead share the closure, legal expenses, costs to maintain the proprisk with a mortgage insurer. erty, expenses associated with the sale of the prop- Although a considerable amount of information erty, and the loss that arises if the foreclosed is available about which institutions hold mort- property sells for less than the outstanding balance gages, less is known about which bear the credit on the loan. A sale for more than the outstanding risk. To assess the distribution ofMortgage credit balance will offset some or all of the lender's risk, we have combined data collected in conjunc- expenses, but generally a substantial portion of the tion with the Home Mortgage Disclosure Act costs are not recovered by the sale of the property. (HMDA) with data submitted by private mortgage insurers about the mortgages they insure. With this 1. Unless otherwise noted, all mortgages discussed were approved during the first ten months of 1994 for the purchase of unique database, we have obtained a rough gauge owner-occupied, single-family homes located in metropolitan areas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 Federal Reserve Bulletin • November 1995 Because foreclosure is costly, a lender often choose not to extend a particular type of mortgage chooses to work with the borrower to acquire pay- contract or a mortgage secured by a specific type of ments on the delinquent loan. For instance, a lender property, ceding that business to competitors. may provide credit counseling, establish a repay- Risk-sharing relationships also influence or limit ment plan to bring the loan payments back on the extent of credit losses. First and most imporschedule, or renegotiate the original terms of the tant, the lender almost always shares the risk of the loan. Working with delinquent borrowers to avoid mortgage with the borrower by requiring the bordefault, however, can also be costly to the lender, rower to make a down payment toward the purwho must provide the resources for these activities. chase of the home and by requiring monthly pay- To mitigate credit risk, lenders take many ments that fully amortize the loan over a fixed steps—the most important of which is requiring period. The bigger the down payment, the more the borrowers to meet certain standards before extend- house value exceeds the loan balance, a difference ing credit. The process of creating and implement- that gives the lender a cushion in case of default. ing these standards and applying them to the bor- Second, lenders often share their credit risk on a rower is called mortgage underwriting. In assessing loan with either a private mortgage insurance comthe risk of a prospective borrower, lenders evaluate pany or a government agency. Finally, lenders may both the ability and the willingness of the borrower sell the mortgage to a government-sponsored enterto repay the mortgage loan. They examine sources prise, such as the Federal National Mortgage Assoof income, debt-payment-to-income ratios, asset ciation (Fannie Mae) or the Federal Home Loan holdings, employment history, and prospects for Mortgage Corporation (Freddie Mac), or to another income growth. Lenders also review the credit his- secondary market institution under terms in which tory of the borrower, including records of payments they shed the credit risk associated with the for rent and utilities when the applicant is a first- mortgage—that is, the secondary market institution time homebuyer or has no record of loan payments will have no recourse to the seller in the event of to evaluate. default by the borrower. Other techniques to limit credit risk include credit counseling, homebuyer Assessing credit risk also requires an evaluation education, and early intervention with delinquent of the property securing the mortgage and the borrowers. proposed use of the property. For example, loans extended for condominiums, manufactured homes, and properties with two, three, or four dwelling units are generally perceived as riskier, and thus TRANSFER OF CREDIT RISK are treated more stringently, than single-family THROUGH INSURANCE OR LOAN SALES detached dwellings. Lenders also consider the characteristics of the Compared with home mortgages that have high mortgage itself and adjust the price of the loan down payments, those that have low down payaccordingly. The loan-to-value ratio on a mortgage ments are more likely to go into default, and losses is one of the primary indicators of default risk; the on such defaulted mortgages are typically more higher the ratio, the greater the risk of default and severe.2 Mortgage lenders customarily require a loss. Thus, lenders will set higher interest rates on 2. Research has consistently found that mortgages with higher mortgages with high loan-to-value ratios, or more loan-to-value ratios go into default more frequently than those with often, they will require that borrowers in such cases lower ratios. See Roberto G. Quercia and Michael A. Stegman, purchase mortgage insurance, which also raises the "Residential Mortgage Default: A Review of the Literature," Jourcost of the loan to the borrower. nal of Housing Research, vol. 3, no. 1 (1992), pp. 341-79. In Freddie Mac's experience, for example, loans with down payments Lenders pursue different business strategies, and of 5 percent go into default twice as often as loans with 10 percent their underwriting practices and standards reflect down payments and five times as often as loans with 20 percent down payments. Loss severity (that is, the loss measured as a those strategies. Some lenders choose to underproportion of the loan balance) is about 25 percent higher for loans write mortgages very strictly and thus limit their with original loan-to-value ratios in the range of 91 percent to exposure to losses. Others accept more credit risk 95 percent compared with loans from 81 percent to 90 percent {Secondary Mortgage Markets, vol. 11, no. 1, 1994, pp. 15-19). and attempt to recoup their higher expected losses The experience of the Federal Housing Administration (FHA) by charging more for a mortgage. Still others may with the mortgages it insures has been similar to that of Freddie Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 991 down payment of at least 20 percent of the the insurer, PMI companies assess and manage appraised value of a home, but they will accept a credit risk.6 In determining whether to insure a smaller down payment if repayment of the mort- particular loan, a PMI company acts as a review gage is insured by a public or a private entity. Such underwriter, evaluating both the creditworthiness insurance allows the lender to share the risk of loss of the prospective borrower and the adequacy of on a mortgage with the insurance provider.3 the collateral offered as security on the loan. This review process results in the denial of insurance to prospective borrowers who are judged to impose Private Mortgage Insurance undue credit risk on the insurer and lender. Lenders are free to extend credit to such borrowers, but they Most borrowers purchase homes or refinance an must do so without the protection of PMI. existing mortgage without mortgage insurance Some information is available about the activibecause they generally want to avoid the added ties of the PMI industry in the aggregate as well as costs of the insurance. Many borrowers, however, about the financial condition of individual insurers; have few assets available for a down payment and much less is known about the experiences of indiclosing costs and thus can ordinarily qualify for a vidual home loan applicants who seek PMI-backed mortgage only with a high loan-to-value ratio and loans. Recently the private mortgage insurance mortgage backing. Other borrowers prefer making industry made available information on the disposia small down payment toward a mortgage even if tion of applications for mortgage insurance and the they have the funds for a larger down payment, and characteristics of the households seeking PMIthey, too, are normally required by the lender to backed loans in 1994 (see the appendix). purchase mortgage insurance. One type of insurance is private mortgage insurance (PMI), which affords some protection to the Government Mortgage Insurance lender if a homeowner defaults on a conventional mortgage.4 PMI reduces a lender's credit risk by Another type of insurance common in the mortgage insuring against losses associated with default up to market is provided by the government, primarily a contractually established percentage of the claim through programs administered by the Federal amount.5 Because defaults may result in a loss to Housing Administration (FHA) and the Department of Veterans Affairs (VA).7 Under these pro- Mac. Among FHA-insured mortgages originated from 1986 grams, the federal government bears most of the through 1989, those with loan-to-value ratios greater than 95 percredit risk associated with a loan. The FHA is cent have defaulted at a rate three to four times that of loans with ratios of less than 90 percent. See James Berkovec, Glenn B. limited in the aggregate amount of credit risk it can Canner, Stuart Gabriel, and Timothy Hannan, "Race and Residen- take by budgetary requirements imposed on its tial Mortgage Defaults: Evidence from the FHA-insured Singleongoing business, by size limits on the mortgages Family Loan Program," in Proceedings of a Conference on Discrimination and Mortgage Lending (U.S. Department of Housing that it can insure, by its inability to lower insurance and Urban Development, Washington, D.C., May 1993). premiums without congressional approval, and by 3. Some lenders will grant low-down-payment mortgages without insurance, sometimes at higher interest rates, thus effectively providing the insurance themselves. Most often such mortgages are percentage of the coverage of the total claim amount as indicated in extended as part of an affordable housing program, but lenders may the policy and let the lender retain title to the property. The option self-insure other low-down-payment mortgages as well. selected by the PMI company will depend on its estimate of the 4. Conventional loans are those not backed by a government potential value of the property net of sales expenses. agency. For a description of the PMI industry, see Glenn B. Canner, 6. For further information about the risk diversification and Wayne Passmore, and Monisha Mittal, "Private Mortgage monitoring practices of PMI companies, see Roger Blood, "Manag- Insurance," Federal Reserve Bulletin, vol. 80 (October 1994), ing Insured Mortgage Risk," in Jess Lederman, ed., The Secondary pp. 883-99., Mortgage Market: Strategies for Surviving and Thriving in Today's 5. The claim amount on a defaulted loan generally includes the Challenging Markets, rev. ed. (Probus, 1992), pp. 635-60. Also see outstanding balance on the loan, delinquent interest payments, John R. Hoff and Kathleen E. Valenti, "Preserving the Dream," expenses incurred during foreclosure, costs to maintain the prop- Mortgage Banking (August 1995), pp. 77-83. erty, and advances the lender made to pay taxes and hazard insur- 7. Technically, the VA offers loan guarantees rather than mortance on the property. After foreclosing and taking title to a property, gage insurance, but both guarantees and insurance are similar in a lender may submit a claim to the mortgage insurer. At this point, function and so are referred to here as mortgage insurance. Other the PMI company has two options: (1) Pay the full claim amount government agencies also provide home loan insurance, but on a and take title to the property or (2) pay the lender the designated much smaller scale. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 Federal Reserve Bulletin • November 1995 a congressionally imposed limit on the aggregate FHA or the VA instead of those backed by private amount of insurance that may be written each year.8 insurers because the agencies insure mortgages that The FHA's largest insurance program is the require considerably less cash at closing and use single-family Mutual Mortgage Insurance Fund. In more liberal underwriting guidelines when evalu- 1994, the FHA insured 686,000 new mortgages for ating the creditworthiness of the applicant.9 For the purchase of single-family homes. This program example, the FHA insures mortgages that require requires a uniform and substantial premium for the smaller down payments and, unlike PMI compainsurance, and it relies on lower-risk borrowers to nies, allows the borrower to finance closing costs. cross-subsidize the costs imposed by higher-risk In addition, the FHA allows households to use gifts borrowers. As a consequence, lower-risk borrowers from others for the entire down payment. (In genwho can qualify for privately insured loans tend eral, private insurers backing low-down-payment not to use FHA programs because they can often mortgages limit the portion of the down payment pay less for private mortgage insurance. that may be paid from gifts.) Moreover, the FHA allows households that carry relatively more debt to qualify for a mortgage, an underwriting practice Comparison of PMI and Government that is often important to lower-income and first- Insurance time homebuyers. As noted earlier, FHA-insured mortgages are not From the lender's perspective, the mortgage insur- likely to be used by lower-risk borrowers who have ance provided by private mortgage insurers and the resources to pay closing costs. At the same that provided by government agencies such as the time, the PMI industry is unable to serve many of FHA and the VA are similar in that both reduce the higher-risk FHA borrowers. Because the FHA credit risk. The level of protection varies, however: is a federal agency and thus does not have to meet Whereas PMI companies typically limit coverage the same capital and profitability requirements to 20-30 percent of the claim in a mortgage imposed on PMI companies by private-sector default, the FHA covers 100 percent of the unpaid investors, its programs can reach many borrowers balance of the mortgage to the lender as well as whom private sector companies cannot profitably most costs associated with foreclosure and sale of serve. The FHA's lending to these higher-risk the property. The VA provides loan guarantees, borrowers is limited mainly by federal legislation with the guaranteed proportion tied to the size of imposing limits on mortgage size and establishing the mortgage. For marginally qualified borrowers, criteria for the financial soundness of the FHA's some lenders may prefer the added protection Multiple Mortgage Insurance Fund. afforded by FHA or VA insurance, and they may encourage the borrowers to apply for these mortgages. Secondary Market Institutions Lenders may have other incentives to encourage applicants to apply for one loan program rather Institutions in the secondary mortgage market play than another. For example, FHA-insured mortgages a prominent role in the U.S. housing market, each provide lenders with greater servicing revenue than year buying and selling billions of dollars of mortdo PMI-covered mortgages. The origination of gages and of securities backed by mortgages. Secmortgages covered by PMI often requires less ondary market institutions generally do not origipaperwork, however. nate loans but rather specify the underwriting From the homebuyer's perspective, the costs and guidelines that loans must meet to be eligible for availability of the insurance offered by the FHA, purchase or securitization. These guidelines and the VA, and PMI companies can differ markedly. related limitations on the size of loans that may be Households often choose mortgages backed by the purchased vary among the secondary market pur- 8. For a discussion of the history of the FHA's programs and its 9. The VA mortgage guarantee program, which is open only to credit policies, see Susan Wharton Gates, "FHA at a Crossroads," veterans, is usually the program of choice for eligible households Secondary Mortgage Markets, vol. 11, no. 3 (1995), pp. 1, 14-21. with few assets available for down payment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 993 chasers.10 As a consequence, the characteristics of institutions to bear credit risk influences the distrithe borrowers and of the neighborhoods in which bution of mortgage credit among different groups the properties are located can be expected to differ of borrowers. Because the credit characteristics of among the loans that these institutions purchase or different groups of borrowers vary, the underwritsecuritize. ing standards of institutions can potentially affect Three government-sponsored enterprises (GSEs) the distribution of mortgage borrowers across dominate secondary market activity—Fannie Mae, income groups, race and ethnic categories, and Freddie Mac, and the Government National Mort- neighborhoods. gage Association (Ginnie Mae). Fannie Mae and For the reasons outlined below, we expect the Freddie Mac buy mainly conventional mortgages: FHA and the VA to have the greatest involvement They hold some in portfolio and convert others into with lower-income and black or Hispanic borrowsecurities that they sell to investors. Ginnie Mae ers, Fannie Mae and Freddie Mac somewhat less does not purchase loans but guarantees the timely involvement, and the PMI companies the least. As payment of interest and principal for privately for portfolio lenders—institutions that originate a issued securities backed by mortgages insured by mortgage and then choose to keep or sell the the FHA or the VA. Over the past few years, the mortgage—it is difficult to say, a priori, where they GSEs have accounted for 60 percent to 72 percent might fall in this ranking. Our expectations are of all mortgage purchases reported under HMDA.11 tempered by many caveats. In the following discus- While the GSEs dominate secondary market sion, we describe the various underwriting stanactivity, other institutions—including commercial dards and the way they can be expected to affect banks, savings associations, insurance companies, the distribution of borrowers, and then we review and pension funds—are also active purchasers of the actual distributions as calculated from the 1994 mortgages. The non-GSE institutions buy the same HMDA data.13 types of loans purchased by the GSEs, but they also provide a market for lenders who originate nonconforming loans, such as jumbo loans, mobile- The FHA and the VA home loans, and certain types of adjustable rate mortgages.12 The respective missions of the FHA and the VA are to promote home ownership among moderateincome homebuyers and among all veterans. The UNDERWRITING STANDARDS AND agencies achieve these goals, in part, by using THE COMPOSITION OF MORTGAGE ACTIVITY government subsidies. Because FHA and VA underwriting standards The institution that bears the credit risk of a mort- are generally less strict than those for privately gage is the one that ultimately makes a mortgage insured mortgages, borrowers whose mortgages are loan possible. The willingness and availability of backed by the FHA or the VA can qualify with more debt relative to income, with smaller down 10. Basic underwriting guidelines include the allowable debt-to- payments, and with weaker credit histories. The income and loan-to-value ratios. Fannie Mae and Freddie Mac, as more relaxed underwriting guidelines of the FHA well as most other secondary market participants, establish thenand the VA are often needed by families with lower own guidelines for the conventional mortgage loans they purchase. In the case of the Government National Mortgage Association incomes because, compared with families having (Ginnie Mae), underwriting standards are established by the higher incomes, lower-income families tend to Department of Housing and Urban Development and the VA. carry relatively higher loads of nonhousing debt, to 11. For a general discussion of the HMDA data, see the appenhave a history of credit problems or no credit dix, pp. 91-103, to Glenn B. Canner and Wayne Passmore, "Home Purchase Lending in Low-Income Neighborhoods and to Low- history at all, and to have fewer assets available to Income Borrowers," Federal Reserve Bulletin, vol. 81 (February make a down payment and pay closing costs. Thus, 1995), pp. 71-103. For a summary of the 1994 HMDA data, see the Financial and Business Statistics section of the September 1995 Federal Reserve Bulletin. 13. Because lenders who originate loans at the end of the year 12. Jumbo loans are conventional mortgage loans that exceed in may not have an opportunity to sell the loan before year-end, when size the maximum single-family mortgage that may be purchased HMDA data must be reported, we have excluded from our calculaby Fannie Mae or Freddie Mac. tions loans originated during the last two months of 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 Federal Reserve Bulletin • November 1995 mortgages insured by either the FHA or the VA low- and moderate-income families. In addition, would tend to be those of lower-income borrow- the Department of Housing and Urban Developers.14 In addition, limits on the size of mortgages ment (HUD) establishes annual goals, as required eligible for FHA and VA backing imply that the by the Federal Housing Enterprises Financial proportion of upper-income borrowers—who gen- Safety and Soundness Act of 1992, for the purerally desire larger mortgages—will be lower for chase of such mortgages by Fannie Mae and Fredthese agencies than for institutions without these die Mac. Thus, the expectation is that these entersize restrictions. prises will, to a greater extent than purely private- On average, black and Hispanic borrowers, com- sector entities, promote homeownership among pared with white or Asian borrowers, have lower lower-income households.17 incomes, purchase homes with lower values, and Private mortgage insurers neither receive govhave less wealth; they also have more credit prob- ernment support nor have a government mandate to lems, higher total debt-payment-to-income ratios, serve lower-income borrowers. To a limited extent, and less stable employment.15 Thus, we expect that PMI companies can price risk by charging higher FHA and VA mortgages would be more heavily premiums to borrowers with certain credit characutilized by black and Hispanic borrowers. Besides teristics. However, lower-income borrowers with having higher proportions of lower-income bor- these characteristics are constrained in their ability rowers and of black and Hispanic borrowers, the to pay higher premiums. Thus, we expect that PMI FHA and the VA are also more likely to back companies are more likely than governmentmortgages extended to borrowers purchasing sponsored institutions (the FHA, the VA, Fannie homes in lower-income and predominately minor- Mae, and Freddie Mac) to insure borrowers who ity neighborhoods.16 have higher incomes, who are either white or Asian, and who are purchasing homes in higherincome neighborhoods or in neighborhoods with GSEs and PMI Companies fewer minority residents. Some factors, however, suggest that PMI compa- Fannie Mae, Freddie Mac, and private mortgage nies may be more likely than Fannie Mae or Fredinsurers are profit oriented and thus cannot bear the die Mac to insure a higher proportion of mortgages same degree of credit loss as the FHA or the VA. extended to lower-income borrowers. For example, However, Fannie Mae and Freddie Mac, although PMI companies focus exclusively on mortgages owned by private shareholders, are government- that have high loan-to-value ratios—mortgages that sponsored enterprises that receive important bene- are more often used by lower-income borrowers. In fits from that sponsorship. One objective in the contrast, Fannie Mae and Freddie Mac generally charters of Fannie Mae and Freddie Mac is to bear risk only for mortgages with larger down promote the availability of mortgage credit to payments because of restrictions in their charters. Unless the mortgage carries PMI or some other form of credit enhancement, Fannie Mae and Fred- 14. The importance of income, per se, in credit risk is unclear. Lower-income borrowers with good credit histories, modest debt die Mac generally purchase only mortgages with burdens, and stable employment may be similar to other similarly the lowest credit risk because they are restricted to situated, higher-income borrowers in terms of their likelihood of purchasing mortgages with a loan-to-value ratio of default. But, as described, income is highly correlated with other measures of creditworthiness. 15. See for example, Alicia H. Munnell, Lynn E. Browne, James 17. Specifically, the goals require that a certain proportion of McEneaney, and Geoffrey M.B. Tootell, Mortgage Lending in Fannie Mae and Freddie Mac purchases be mortgages extended to Boston: Interpreting HMDA Data, Working Paper 92-7 (Federal low- and moderate-income families and to families located in Reserve Bank of Boston, October 1992), p. 24, table 4. central cities. Furthermore, both institutions must purchase a speci- 16. Many lower-income borrowers do not buy homes in low- fied dollar amount of mortgages extended to families residing in income neighborhoods. Thus, lower-income borrowers are not syn- low-income areas or with very low incomes (this latter goal is onymous with low-income neighborhoods, but the proportion of referred to as the special affordable housing goal). For more details lower-income borrowers in lower-income neighborhoods is higher about these goals and their effects, see Glenn B. Canner, Wayne than the proportion in other neighborhoods. See Glenn B. Canner Passmore, and Dolores S. Smith, "Residential Lending to Lowand Wayne Passmore, "Implementing CRA: What is the Target?" Income and Minority Families: Evidence from the 1992 HMDA in Proceedings of the 31st Annual Conference on Bank Structure Data," Federal Reserve Bulletin, vol. 80 (February 1994), and Competition (Federal Reserve Bank of Chicago, forthcoming). pp. 79-108. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 995 80 percent or less. In addition, many of the PMI Holding mortgages that can be easily sold in the companies have recently begun new programs to future improves the liquidity of a portfolio lender, increase the utilization of PMI by lower-income and thus the degree to which such a lender wants to and minority households, suggesting that PMI com- hold nonstandard mortgages may be limited. Portpanies, like the GSEs, may balance the objective of folio lenders can, however, exploit market niches profit maximization against other objectives.18 that allow them to collect better information about the risk of a particular group of mortgage borrowers, or they can specialize in the management of Portfolio Lenders higher-risk mortgages more generally; under these circumstances, they may hold relatively large pro- Portfolio lenders are institutions that have the capa- portions of nonstandard mortgages, including those bility of originating and funding a mortgage extended to lower-income and minority borrowers. directly; among them are commercial banks, sav- In other words, many portfolio lenders pride themings associations, credit unions, and some mort- selves on "knowing their community," and this gage banks. Portfolio lenders can determine their knowledge can be used to better manage the credit own underwriting standards, and these institutions risk of local lending. Without this specialized may strive to keep only their low-risk mortgages knowledge or without some feature that makes the and pass the risk of their other mortgages to other mortgage nonconforming (and hence higher yieldinstitutions either by selling them or by obtaining ing or lower cost), a portfolio lender often will insurance on them from a third party. A portfolio have difficulty originating and funding a mortgage lender's tendency to keep better-quality mortgages loan profitably.19 for its own portfolio and to sell poorer-quality The vast majority of portfolio lenders are deposimortgages is referred to as adverse selection. tory institutions, which in turn hold almost all Profit-oriented purchasers or insurers of mort- home purchase loans held by portfolio lenders. gages, such as Fannie Mae, Freddie Mac, and PMI Depository institutions benefit from a government companies, guard against adverse selection by set- subsidy provided through deposit insurance and ting stricter underwriting standards than they would from other services available exclusively to them. if they had full information about the risk of the In return, they bear the costs of many regulations mortgages they buy or insure and by closely moni- not imposed on other firms. Among these regulatoring the adherence of mortgage originators to tions is the Community Reinvestment Act, which these standards. On balance, it is difficult to know, requires them to help meet the credit needs of their a priori, how adverse selection will affect the communities. This factor, combined with the limrelative involvement of mortgage-market institu- ited profitability of funding conforming mortgages, tions in lending to lower-income and minority leads us to expect that mortgages held by deposiborrowers. tory institutions in portfolio without PMI generally will be underwritten with greater flexibility than mortgages that are either insured by a PMI com- 18. The PMI industry has been promoting homeownership by pany or sold into the secondary market. providing insurance for mortgages with 97 percent loan-to-value ratios. These programs also use more flexible underwriting criteria. To offset the additional potential risk from such loans, borrowers are required to complete a homebuyer education course. Thus, to the extent the programs are influencing the type of mortgage that is Mortgage Activity and Loan Size insured or sold, we might expect to see more low-income borrowers, or black and Hispanic borrowers, with mortgages that are For the analysis presented below, the mortgage insured or that have been sold. market is divided by loan size. The FHA cannot In addition, PMI companies, as well as Fannie Mae and Freddie Mac, have introduced new programs targeted toward low- and insure mortgages that are larger than legislated moderate-income households. Joint programs among the PMI com- limits. In 1994, the loan size limit in most areas of panies and the secondary market agencies, such as Fannie Mae's Community Home Buyers program and Freddie Mac's Affordable Gold program, allow the borrower to use gifts and other nonbor- 19. See Joseph Blalock, "Successful Fixed-Rate Lending" Savrower sources of funds for part of the down payment on a mortgage ings and Community Banker (February 1994), p. 38; and Wayne with a 95 percent loan-to-value ratio; such sources of funds are not Passmore, "Can Retail Depositories Fund Mortgages Profitably?" allowed in regular 95 percent loan-to-value ratio programs. Journal of Housing Research, vol. 3, no. 2 (1992), pp. 305-40. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 Federal Reserve Bulletin • November 1995 the country for a single family home was $77,197. Mortgages that exceed the FHA's single-family In areas where housing prices were high, the allow- mortgage size limits but not the limit on mortgages able limit was $152,362. that Fannie Mae and Freddie Mac can purchase We refer to mortgages that fall within the FHA ($203,150 in 1994) are referred to here as "GSEmortgage size limits as FHA-eligible. In 1994 eligible only" mortgages, a term we shorten further about 67 percent of all mortgages for the purchase to "GSEO-eligible." In 1994 about one-fourth of of owner-occupied homes were FHA-eligible all mortgages for purchasing an owner-occupied (table l).20 In 1994 an even higher proportion of home were GSEO-eligible. Less than 5 percent of the mortgages extended to lower-income borrowers the mortgages extended to lower-income borrowers (95 percent) and to black or Hispanic borrowers and 15 percent of the mortgages extended to either (82 percent) were FHA-eligible. black or Hispanic borrowers were GSEO-eligible. Fannie Mae and Feddie Mac bear a relatively 20. Some FHA mortgages have sizes above the mortgage limits large share of the risk of GSEO-eligible mortused for the FHA-eligible category because the FHA establishes gages. With their government backing, they are higher mortgage limits for two-, three-, and four-family properties. Mortgage loans, grouped by size and distributed by the characteristics of borrowers and of the census tracts in which the properties are located, 1994 FHA-eligible GSEO-eligible Jumbo AU Per- Per- Per- Per- Pet- Per- Per- CChhaarraacctteerriissttiicc centage centage centage centage centage centage centage Number of of Number of of Number of of Number T all charac- all charac- all charac- all loans teristic loans teristic loans teristic loans BORROWER Income1 Lower 600,880 95.0 39.8 28.502 4J 5.0 2,851 .5 1.7 632,233 100 28.1 Middle 535, U 5 79.5 35.5 132,013 19.6 23.1 6,325 .9 3.7 673,453 100 29.9 372,130 39.4 24.7 410,616 43.5 71.9 160.565 17.0 94.6 943,311 100 41.9 1,508,125 67.1 100 571,131 25.4 100 169,741 7.5 100 2,248,997 100 100 Racial or ethnic identity Asian, Pacific Islander, or white 1,207,139 65.2 80.8 494,598 26.7 88.1 149.407 8.1 90.3 1.851,144 100 83.4 Black or Hispanic 237,160 82.2 15.9 43,177 15.0 7.7 8.24« 2.9 5.0 288,583 100 13.0 Other- 49.790 61.5 3.3 23,317 28.8 4.2 7,850 9.7 4.7 80,957 100 3.6 Total 1.494,089 67.3 100 561,092 25.3 100 165,503 7.5 100 2,220.684 100 100 CENSUS TRACT Income3 Lower 217.479 89.0 14.5 22,597 9.2 4.0 4,393 1.8 2.6 244,469 100 10.9 Mti ddle 872,923 76.3 58.3 232.228 20.3 40.6 38,436 3.4 22.5 1,143.587 100 51.0 408,085 47.8 27.2 316,507 37.1 55.4 128,256 15.0 75.0 852,848 100 38.1 1,498,487 66.9 100 571,332 25.5 100 171,085 7.6 100 2,240,904 100 100 of population) Less than 10.. 751,462 64.3 50.3 334,780 28.7 58.7 82.112 7.0 48.0 1,168.354 100 52.3 10-49 595,486 67.1 39.9 21J ,552 23.8 37.1 80.998 9.1 47.4 888.036 100 39.7 50-100 146,768 82.1 9.8 24,047 13.5 4.2 7,919 4.4 4.6 178,734 100 8.0 Total 1,493,716 66.8 100 570,379 25.5 100 171,029 7.7 100 2.235,124 100 100 Total 1,524/IU 67,1 577,088 25.4 171,748 7.6 2,273,247 100 NOTE. Includes only owner-occupied home purchase mortgages origi- ... Not applicable. nated in 1994 for which action on the application was taken before Novem- 1. Lower: Less than 80 percent of the median family income of the MSA ber 1,1994, and for which the property securing the mortgage was located in in which the property related to the loan is located. Middle: 80 percent to a metropolitan statistical area (MSA). 120 percent. Upper: More than 120 percent. Not ill characteristics are reported for all loans. 2. Includes American Indian or Alaskan Native, other minorities, and FHA-eligible: Loans that fell within the FHA mortgage size limits for joint (white and minority co-borrowers). single-family homes in 1994. Some FHA mortgages are larger than the 3. Lower: Median family income for census tract less than 80 percent of mortgage limits used for the FHA-eligible category because the FHA estab- the median family income of the MSA in which the census tract is located. lishes higher mortgage limits for two-, three-, and four-family properties. Middle: 80 percent to 120 percent. Upper: More than 120 percent. GSEO-eligible: Loans that exceeded the FHA single-family mortgage limits SOURCE. 1994 HMDA and PMI data from FFIEC. but not the maximum single-family loan size that could be purchased by Fannie Mae or Freddie Mac in 1994. Jumbo: Loans that exceeded the Fannie Mae and Freddie Mac limits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 997 advantaged competitors that can effectively price gages, the assignment is essentially accurate; in the the risk of conforming GSEO-eligible mortgages case of PMI-insured mortgages, it is less valid, but below the price set by their potential competition.21 we have no way to quantify the actual shares Typically, other bearers of credit risk take on of credit risk. Because PMI companies are bearing the risk of a GSEO-eligible mortgage only if it is the preponderance of risk associated with such nonconforming or if they have some generally mortgages, assigning them all the risk is a simplifiunavailable knowledge about the borrower or the cation that should not be seriously distorting. property securing the mortgage. Finally, a mortgage that exceeds $203,150 is referred to as a jumbo mortgage. In 1994, jumbo Using HMDA and PMI Data to Determine mortgages accounted for about 8 percent of all Who Bears Credit Risk mortgages for purchasing a home, for less than 1 percent of the mortgages to lower-income bor- Information about who originates, holds, purrowers, and for less than 3 percent of the mortgages chases, or insures a mortgage in a given year is to black or Hispanic borrowers. available from HMDA in combination with PMI data. But the credit characteristics of the mortgage are not included in the data. Thus, only rough THE DISTRIBUTION comparisons are possible because we can observe OF MORTGAGE BORROWERS only the income and race or ethnic group of BY HOLDER OF THE CREDIT RISK the borrower and the location of the property and not key measures of creditworthiness such as the In the discussion of the influence of underwriting loan-to-value ratio, the credit history, or the debtstandards on mortgage activity, we use two special payment-to-income ratios. terms: mortgage credit risk holders (risk holders), Because of the limited set of information availwhich are institutions that would actually bear the able in HMDA and PMI data, we do not attempt to loss from a mortgage default, and mortgage credit adjust our measure of credit risk—the actual numrisk portfolios (risk portfolios), which are the mortber of mortgages either insured or held without gages for which a risk holder bears the credit risk, insurance by the institution—for the actual regardless of whether the risk holder actually funds expected credit risk of particular mortgages. This the mortgages. For our purposes, the risk holders technique allows only broad and rough inferences are the FHA, the VA, PMI companies, Fannie Mae about the extent to which an institution bears the and Freddie Mac, other purchasers of mortgage credit risk associated with particular income, racial, securities, and depository institutions. The FHA, or ethnic groups. Adjustments to our measure of the VA, PMI companies, Fannie Mae, and Freddie risk bearing would require information related to Mac do not fund all (or in some cases any) of the the creditworthiness of individual borrowers, which mortgages for which they hold the credit risk. is not available from the HMDA and PMI data. We Thus, the number of mortgages in the risk portdo, however, discuss the direction adjustments folios of these institutions is far larger than their might take and do not believe that they would actual mortgage holdings. generally alter the patterns outlined below. For a depository institution, the risk portfolio To conduct the analysis, we matched the indiconsists only of the mortgages held in the instituvidual mortgage records reported by mortgage tion's portfolio that are not insured and that have originators under HMDA with individual records not been securitized. That is, for this discussion, we on loans insured by PMI companies reported in a assign to the insurer all the credit risk of an insured manner that parallels that of HMDA reporting. The mortgage. In the case of government-backed mortdetails of this matching procedure are provided in the box, "Matching HMDA and PMI Loan 21. For additional details about Fannie Mae and Freddie Mac Records." Extracting the PMI-insured mortgages and their roles in the conforming mortgage market, see John L. Goodman, Jr., and Wayne Passmore, Market Power and the Pricing from the mortgages funded or guaranteed by an of Mortgage Securitization, Finance and Economics Discussion institution allows us to measure the credit risk Series 187 (Board of Governors of the Federal Reserve System, borne by these institutions more precisely. March 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 Federal Reserve Bulletin • November 1995 Accounting for PMI Measuring the overall distribution of mortgage lending by type of risk holder without controlling To evaluate the respective roles of the FHA, the VA, for the size of the mortgage or extracting the mortgages insured by PMI indicates that depository companies, we compared information on individual institutions held or purchased 34 percent of the home mortgages reported by lenders covered by mortgages originated in 1994 (table 2, last column, HMDA in 1994 to those reported by PMI companies sum of "Depository institution," "Bank or savings for that year. Conventional home mortgages (that is, association not affiliated with a mortgage originathose not government-backed) were identified in the tor," and "Affiliate, from a depository institution HMDA data as privately insured if loan records in the or its subsidiary" for mortgages with and without two files matched. Two loan file records were deemed PMI). Fannie Mae and Freddie Mac purchased to match each other if they were similar for the followabout 25 percent of the mortgages, and the FHA ing characteristics: purpose of loan, location of the and VA backed about 23 percent of the mortgages. property securing the mortgage (same state, MSA, The remaining mortgages were originated and held county, census tract), race or ethnic status of borrower, by an independent mortgage company, purchased sex of borrower, applicant income, and loan size. The purpose of the loan and the location of the property by "other" secondary mortgage market instituhad to be identical for the two loan records. The race tions, or purchased from independent mortgage or ethnic status also had to be identical unless it was companies by affiliates. missing from the PMI record—in this case, a match Of the mortgages that were retained or pur- was allowed if all other criteria were satisfied. chased by depository institutions or their subsidi- For matches on applicant income, differences of aries, roughly 17 percent were backed by PMI $1,000 for borrowers with incomes of less than (derived from table 2). That most of these mort- $50,000 and differences of $2,000 for higher-income gages were not backed by PMI implies that deposi- borrowers were allowed in identifying matches. For tory institutions bear the credit risk of most of the matches on loan size, differences of $ 1,000 for loans of less than $100,000 and differences of $2,000 for loans mortgages they hold; given that depository instituof $100,000 or more were allowed in identifying tions, taken together, have the largest market share matches. for mortgages, it also implies that they are the Among the 2,795,162 conventional home purchase largest holder of credit risk in the mortgage market. loans reported in 1994 under HMDA, 454,187, or In contrast, Fannie Mae and Freddie Mac together 16.2 percent, were identified as privately insured. For had PMI coverage for about 31 percent of the this article, 1,813,188 conventional mortgages for the mortgages they purchased. purchase of owner-occupied homes were used, of Treating risk holders separately, depository insti- which 393,742, or 21.7, percent were insured. The tutions bore about 28 percent of the credit risk of smaller number of mortgages reflects a number of home lending, whereas Fannie Mae and Freddie restrictions, including that the property be owner- Mac together, the FHA, and the PMI companies occupied, that it be located in an MSA and have a valid each had 17 percent. Thus, measuring 1994 mort- census tract number, and that the mortgage be approved during the first ten months of 1994. The higher gage portfolios as risk portfolios by extracting percentage of insured mortgages in our data likely mortgages insured by PMI only slightly reduces the reflects the exclusion of non-owner-occupied propermarket share of depository institutions but signifities and properties outside of MSAs (often mobile cantly shrinks the combined share of Fannie Mae homes), for which mortgages rarely carry PMI. and Freddie Mac. Put another way, the distribution of mortgage originations and purchases in the 1994 market did not parallel the distribution of credit risk. "weight" mortgage loans by the actual credit risk Generally, the type of mortgage insured by the they pose to the institutions that insure, hold, or FHA or by the PMI companies is riskier than the purchase mortgages, the FHA and the PMI compatype of mortgage for which Fannie Mae or Freddie nies presumably would bear a proportion of the Mac bear the credit risk. Thus, if one could credit risk that is higher than we calculate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 999 FHA-Eligible Mortgages ers and borrowers who are black or Hispanic than those held or insured by other risk holders (table 3). FHA-eligible mortgages are, by definition, rela- This result is not surprising because, as described tively small and are more likely to be used by earlier, the FHA is government backed and governlower-income borrowers. By looking at the compo- ment subsidized and thus can use more flexible sition of FHA-eligible mortgages in each institu- underwriting standards than a private-sector lender tion's risk portfolio, one can make some inferences or insurer. The other government agency that diabout which institutions provide the critical credit- rectly backs mortgages, the VA, insured a lower risk-bearing ingredient in the extension of credit to proportion of mortgages extended to lower-income lower-income borrowers. or black or Hispanic borrowers in 1994 than did the FHA, but it still generally carried a higher proportion of such mortgages in its risk portfolio than did The FHA and the VA many other risk holders. The VA, of course, is Among FHA-eligible home purchase mortgages, restricted to serving veterans, and that restriction in those actually insured by the FHA include a signifi- itself might constrain the range of household cantly higher proportion of lower-income borrow- income groups it can reach. 2. Mortgage loans, grouped by size and distributed by type of holder and use of insurance, 1994 FHA-eligible • ••••••••••,•• ..,,..,,...,.,,: Number j,ge „ 24365 ' 5 056 49,941 2.1 5.667 .2 30,709 1.3 2,763 mSmUtl0n. 17,365 1. 2361,461 100 NOTE. See general note to table 1. 1.524.254 100 3. Totals differ from totals in table 1 because, for a few loans, status of 1. Covers mortgages originated in 1994 and not sold to a secondary purchaser was not reported. market purchaser in that year. SOURCE. 1994 HMDA data and PMI data from FFIEC. 2. Life insurance companies, pension funds, and other private-sector purchasers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 Federal Reserve Bulletin • November 1995 3. Proportion of mortgages involving lower-income or black or Hispanic borrowers or census tracts, by type of holder, use of insurance, and size of loan, 1994 Percent FHA-eligible GSEO-eligible Borrower Census tract Borrower Census tract and insurance status characteristic characteristic characteristic charact eristic Lower Black or Lower Predominantly Lower Black or Lower Predominantly income Hispanic income minority income Hispanic income minority FHA 45.1 25.7 17.8 13.3 12.4 ' 19.4 9.9 8.9 VA 40.3 19.6 14.0 9.1 10.5 15.5 j 5.0 H H H Hj WITHOUT MORTGAGE INSURANCE Originators Depository institution 40.9 11.6 15.5 8.8 3.8 5.6 42 3.6 company 40.4 19.6 16.7 14.7 7.5 I'M 5.8 7.8 Purchasers Fannie Mae or Freddie Mac .. 35JS 9.7 10.5 7.7 7.0 62 3.7 4.1 Bank or savings association not affiliated with a mortgage originator 34.9 8.8 10.7 7.1 4.6 6.0 4.3 4.0 Other 40.7 11.1 13.6 8.4 2.9 § 6.5 4.1 4.2 Affiliate, from an independent ^ |j H H HH mortgage company 42.5 13.5 13.2 9.3 1.8 1 7.2 4.0 4.7 Affiliate, from a depository institution or its subsidiary 44.0 13.8 16.9 8.1 3.2 5.2 3.6 2.7 WITH PRIVATE MORTCAGB INSURANCE Originators mm • Depository institution 35.6 14.0 1133..66 9.2 2.0 6.6 2.8 I company 32.5 21.2 t£3 14.2 2.0 110 2.7 6.8 Purchasers mm Fannie Mae or Freddie Mac .. 31.8 14.6 12.0 9.2 1.8 6.8 2.5 3.6 Bank or savings association H H HH not affiliated with a mortgage originator 29.0 10.4 9.4 7.2 1.5 6.7 2.6 M 3.8 Other 32.8 13.3 11.1 8.1 1.2 6.8 2.3 3.3 Affiliate, from an independent mortgage company 30.1 13.9 8.7 8.3 l.t 6.6 1.9 2.9 Affiliate, from a depository institution or its subsidiary 37.0 15.5 14.5 8.8 1.5 5.3 25 2.2 All 39.8 15.9 145 9.8 5.0 7.7 4.0 4.2 NOTE. See general note to table 1 and notes 1 and 2 in table 2. A predominately minority census tract has a minority population that is Income of lower-income borrowers is less than 80 percent of the MSA in larger than 50 percent of the tract's total population. which the property related to the loan is located. SOURCE. 1994 HMDA data and PMI data from FFIEC. A lower-income census tract has a median family income of less than 80 percent of the MSA median family income. FHA-Eligible Mortgages without PMI make loans and often have multiple relationships with their borrowers, they have an opportunity to As discussed earlier, lower-income borrowers in look beyond these traditional measures and acquire general have less wealth, more credit history prob- better information about the risk characteristics of lems, higher ratios of total debt payments to individual borrowers.22 Portfolio lenders can also income, and less stable employment, and they are exercise considerable flexibility when applying more likely to be black or Hispanic. These financial characteristics are traditionally used in mortgage 22. For an extensive review of the role of depository institutions underwriting as measures of risk. Because portfolio in community lending, see Board of Governors of the Federal Reserve System, Report to the Congress on Community Developlenders, and depository institutions in particular, ment Lending by Depository Institutions (Board of Governors, tend to be located in the neighborhoods where they 1993). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1001 3.—Continued Jumbo Total TTTyyypppeee ooofff hhhooollldddeeerrr Borrower Census tract Borrower Census tract aaannnddd iiinnnsssuuurrraaannnccceee ssstttaaatttuuusss characteristic characteristic characteristic characteristic Lower Black or Lower Predominantly Lower Black or Lower income income minority income Hispanic income minority —. 1 FHA 8.7 49.2 28.5 38.3 42.9 25.3 17.3 13.0 VA 1.2 4.0 2.1 2.7 30.6 18.3 11.0 7.7 WITHOUT MORTGAGE INSURANCE Originators Depository institution .6 4.6 2.5 4.3 27.4 9.4 11.2 Independent mortgage company 2.7 7.3 3.5 6.9 27.3 15.8 12.2 Purchasers Fannie Mae or Freddie Mac .. 1.9 7.8 6.3 20.3 25.5 8.5 8.1 Bank or savings association not affiliated with a mortgage originator 1.4 4.5 3.5 4.6 19.3 7.2 7.4 Other 4.6 4.6 2.4 4.1 23.4 8.6 8.7 Affiliate, from an independent Affili m at o e r , f tg r a o g m e c a o d m e p p a o n si y to ry 4.5 2.6 4.3 22.9 9.8 8.4 institution or its subsidiary 3.5 1.9 1.8 26.3 9.9 11.0 WITH PRIVATE MORTGAGE INSURANCE Originators Depository institution 5.6 2.2 4.9 21.0 10.8 8.9 Independent mortgage company 9.0 2.4 7.1 19.0 16.5 8.0 Purchasers Fannie Mae or Freddie Mac .. 15.3 4.1 18.2 20.2 11.6 8.3 Bank or savings association not affiliated with a Othe m r ortgage originator 6 6 . . 8 1 3 1 . . 4 8 4 3 . . 2 7 1 16 4 . . 4 9 9 8 . . 9 5 6 6. . 5 0 5 5. . 7 5 Affiliate, from an independent mortgage company 7.1 1.2 2.9 15.2 10.2 5.2 5.5 Affiliate, from a depository institution or its subsidiary .0 6.0 2.3 2.6 21.5 11.1 9.2 5.9 AD 1.7 5.0 2.6 4.6 28.1 13.0 10.9 8.0 their underwriting standards if they plan not to sell income and black or Hispanic borrowers without or insure a mortgage. The knowledge and flexibil- PMI and held by the various risk holders. ity of portfolio lenders seems to be reflected in the Of the FHA-eligible conventional mortgages income and racial or ethnic characteristics of the originated and held in portfolio in 1994 by deposiborrowers for the mortgages they originate. tories, about 41 percent were extended to lower- In contrast, institutions such as Fannie Mae and income borrowers and 12 percent to black or Freddie Mac purchase mortgages without the bene- Hispanic borrowers. Affiliates of depositories also fit of the additional information that comes from purchased a significant proportion of lower-income familiarity with borrowers and their neighbor- mortgages for their risk portfolios. Forty-four perhoods; these institutions seem to have greater diffi- cent of their FHA-eligible mortgages were to borculty bearing the credit risk associated with the rowers with lower income, and 17 percent were to mortgages extended to lower-income and black or borrowers who live in lower-income areas; these Hispanic borrowers. This distinction is highlighted levels are comparable to those of the FHA and the by the proportions of mortgages extended to lower- VA, suggesting that those borrowing from affiliates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 Federal Reserve Bulletin • November 1995 tend to have lower incomes than those borrowing bined in 1994 was low. Furthermore, the proporfrom traditional depository institutions. Depository tion of mortgages purchased by Fannie Mae and institutions sometimes use affiliates, such as mort- Freddie Mac that are for properties in lower-income gage brokers, to extend the reach of their branch or minority neighborhoods is also relatively small, networks into lower-income neighborhoods, where a fact suggesting that some of the lower-income opening more traditional "brick and mortar" facili- borrowers in the risk portfolios of these institutions ties may not be profitable. actually may be households with substantial finan- Although most independent mortgage companies cial assets.23 sell most or all of their mortgage originations to Perhaps also surprising is the high proportions of others, some hold their originations—particularly lower-income and black or Hispanic borrowers those that are nonconforming—in portfolio. The among those whose mortgages are sold to privaterisk portfolios of these lenders and their affiliates sector nondepository purchasers such as investalso have relatively high proportions of mortgages ment banks, life insurance companies, and pension extended to lower-income or black or Hispanic funds (the "other" category in table 3). Like Fanborrowers; the proportions may partly reflect the nie Mae, Freddie Mac, and depository institutions extensive involvement of these lenders in FHA purchasing loans from nonaffiliates, these entities lending, which may also generate many opportuni- must guard themselves against mortgages with unties for extending conventional mortgages to black expectedly high credit risk and thus presumably set and Hispanic borrowers. high underwriting standards. However, here, too, FHA-eligible mortgages that are not insured and some countervailing factors exist. First, in the past that are sold either to a government-sponsored couple of years investment banks have created a enterprise or to a nonaffiliated depository institu- secondary market for mortgages that do not meet tion are more likely to be mortgages of higher- traditional underwriting standards. Securities in income or white or Asian borrowers. The high this market are often backed by "B" and "C" proportions of such mortgages sold to Fannie Mae mortgages—that is, mortgages with lower credit and Freddie Mac may reflect stricter underwriting quality than "A" mortgages, which have the highstandards for mortgages without PMI, the required est expected credit quality.24 Second, some of the low loan-to-value ratios on mortgages without private-sector purchasers of mortgages, such as PMI, and the difficulties these institutions face in pension funds, have also been encouraged to collecting comprehensive information about the increase the proportions of their risk portfolios risk characteristics of lower-income borrowers. extended to lower-income households. Similarly, a bank or savings association that is purchasing a mortgage from a nonaffiliated mortgage lender would be expected to set high under- FHA-Eligible Mortgages with PMI writing standards because, as described earlier, it must guard itself against originators who may try Given that PMI companies use their own underto sell it mortgages with poorer credit risk. A writing standards, for the most part regardless of depository does not generally need to rely on non- who holds the mortgage, we expect that the distriaffiliated originators to generate mortgages to bution of borrower characteristics among privately lower-income and minority borrowers because it insured mortgages does not vary much by type of can extend these mortgages directly or through its institution. However, our expectations are not supown affiliates. However, some depositories may ported by the data. The distribution of mortgages purchase such mortgages to help them meet their extended to black or Hispanic borrowers varies. In obligations under the Community Reinvestment Act. 23. For evidence that lower-income borrowers who purchase homes in middle- and upper-income neighborhoods may not be In recent years, HUD has encouraged both financially constrained, see Canner and Passmore, "Implementing Fannie Mae and Freddie Mac to increase the lower- CRA." income portion of their total mortgage purchases. 24. For a further discussion of the role of non-agency mortgage securities, see Nancy DeLiban and Brian P. Lancaster, "Under- Yet, in terms of risk holdings of such mortgages, standing Nonagency Mortgage Security Credit," Journal of Housthe ranking of Fannie Mae and Freddie Mac coming Research, vol. 6, no. 2 (1995), pp. 197-216. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1003 addition, the variance does not seem to reflect a 56 percent of the FHA-eligible mortgages extended distinction between portfolio lenders and other in- to lower-income borrowers. Fannie Mae and Fredstitutions. As for mortgages extended to lower- die Mac taken together are the third largest risk income borrowers, the same pattern of borrower holder in this market, with a 15.2 percent share of characteristics across institutions exists regardless the market, whereas PMI companies as a group of whether or not the mortgage is insured by PMI. bear the risk of 12.3 percent of these mortgages. Portfolio lenders and their affiliates carry the high- The FHA and depository institutions (including est proportions of such mortgages, as well as rela- affiliates) accounted for about 60 percent of the tively high proportions of mortgages extended to FHA-eligible mortgages extended to black or Hisborrowers in lower-income neighborhoods. panic borrowers, PMI companies accounted for The PMI-covered portions of each holder's risk about 14 percent, and Fannie Mae and Freddie Mac portfolio had a greater proportion of higher-income accounted for about 10 percent. In addition, the and black and Hispanic borrowers than did the FHA and depository institutions that are not using portions not covered by PMI. Interpreting these PMI hold the majority of the mortgages extended difi$iences is problematic. One possible explana- to borrowers in lower-income neighborhoods or in tion is that PMI companies, when insuring the risk neighborhoods with high proportions of minority of mortgages with high loan-to-value ratios, pro- residents, a finding that suggests that these borrowvide the best value for individuals with higher- ers have limited financial resources.26 incomes (but little wealth). Blacks and Hispanics at all incomes have, on average, less wealth than whites with similar incomes, suggesting that black GSEO-Eligible Mortgages and Hispanic borrowers who have higher incomes and meet traditional underwriting standards but In 1994 the number of GSEO-eligible mortgages lack the wealth for a down payment may find their was roughly 38 percent of the number of mortlowest-cost option is a mortgage with PMI.25 gages that are FHA-eligible (derived from table 1). Furthermore, among GSEO-eligible mortgages, only 5 percent were for lower-income borrowers, The Market Share of FHA-Eligible Mortgages and 4 percent were for borrowers purchasing properties in lower-income neighborhoods. Roughly An institution's underwriting standards and busi- 8 percent of the borrowers in this category were ness strategy influence its presence in a particular black or Hispanic, and about 4 percent of the market. An institution aggressively seeking mort- GSEO-eligible mortgages were for properties in gages with a variety of credit qualities may have a minority neighborhoods. Thus, institutions that significant presence in all markets but have a lower focus on GSEO-eligible mortgage lending are limproportion of higher-risk mortgages than an institu- ited in the extent to which they can serve lowertion that only rarely accepts higher-risk mortgages. income or black or Hispanic borrowers. For example, an institution may actually make Among risk holders of GSEO-eligible mortmost of the FHA-eligible mortgages extended to gages, the FHA and VA have higher proportions of lower-income borrowers, but such mortgages may such mortgages extended to lower-income or black account for a small percentage of its portfolio or Hispanic borrowers and relatively high proporbecause it makes many mortgages overall. The credit risk of the majority of FHA-eligible 26. Many of the lower-income borrowers recorded in HMDA mortgages extended to lower-income or to black or data may not be borrowers with limited financial resources. For example, retirees may have lower incomes but significant holdings Hispanic borrowers is carried either by the FHA or of financial assets, and newly graduated professionals may have by depository institutions (or their affiliates) who small current incomes but substantial future incomes. Lowerare not using PMI for such mortgages (table 4). income borrowers who locate in lower-income neighborhoods may Together, these institutions account for about be more likely to have both limited income and limited financial assets and thus may be more likely to need loan programs that allow minimal down payments and the financing of closing costs. 25. Data on wealth and income are from the Board of Gov- Conversely, lower-income people with wealth are less likely to ernors of the Federal Reserve System, 1992 Survey of Consumer locate in such neighborhoods. See Canner and Passmore, "Imple- Finances. menting CRA." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1004 Federal Reserve Bulletin • November 1995 4. Share of market for mortgages involving lower-income or black or Hispanic borrowers or census tracts, by type of holder, use of insurance, and size of loan, 1994 Percent FHA-eligible GSEO-eligible Type of holder Borrower Census tract Borrower Census tract and insurance status characteristic characteristic characteristic characteristic Lower Black or Lower Predominantly Lower Black or Lower income Hispanic income minority income Hispanic income minority • GOVERNMENT FHA 27.3 39.3 29.7 32.6 11.1 11.4 11.2 9.3 7.0 8.5 6.6 6.3 18.3 17.3 10.4 10.3 WITHOUT MORTGAGE INSURANCE Originators Depository institution — 24.0 17.2 24.7 20.7 16.6 16.1 22.9 18.6 Independent mortgage 2.1 2.4 2.4 3.1 3.3 3.0 3.2 4.1 Purchasers Fannie Mae or Freddie Mac 15.2 10.2 12.3 13.4 33.0 18.6 21.9 . 23.0 not affiliated with a mortgage originator — .9 .5 .7 .7 1.5 1.3 1.8 1.6 Other 6.8 4.7 6.2 5.7 4.6 6.5 8.0 7.8 Affiliate, from an independent mortgage company .8 Affiliate, from a depository 1.0 .7 institution or its subsidiary 2.7 3.6 2.6 2.5 3.5 2.5 3.5 2.7 WITH PRIVATE MORTGAGE INSURANCE Originators Depository institution 3.3 3.3 3.5 3.6 2.5 5.2 4.3 5.7 Independent mortgage company -4 .7 .5 .8 .4 1.4 .7 1.6 chasers s Mae or Freddie Mac . 5.9 6.8 6.2 7.0 4.4 10.9 1,1 10.5 ; or savings association not affiliated with a mortgage originator — .2 .2 .2 .2 .2 .6 .5 .6 1.3 1.3 1.2 1.3 .7 2.8 1.8 2.4 Affiliate, from an independent mortgage company .1 •2 .1 .2 .1 .3 .3 Affiliate, from a depository institution or its subsidiary 1.1 1.1 12 1.0 .6 1.4 1.2 1.0 Total... 100 100 100 I 100 100 100 100 NOTE. See notes to table 3. tions of such mortgages extended to borrowers The proportion of such mortgages in their risk purchasing homes in lower-income and minority portfolio that is extended to black or Hispanic neighborhoods. Thus, among large mortgages as borrowers with no PMI is also somewhat higher. well as FHA-eligible mortgages, the FHA and VA For Fannie Mae and Freddie Mac, the proportion underwriting standards, which qualify higher-risk of borrowers in lower-income neighborhoods is borrowers for mortgages, seem to serve larger pro- smaller than their proportion of lower-income borportions of lower-income or black or Hispanic bor- rowers, suggesting that some of the mortgages to rowers than do the underwriting standards of other lower-income borrowers may not actually be to lenders. those with limited financial resources. In contrast to patterns found among FHA- Together, Fannie Mae and Freddie Mac pureligible mortgages, Fannie Mae and Freddie Mac chased, and depository institutions purchased or hold in their combined GSEO-eligible risk port- originated, the majority of GSEO-eligible mortfolio a higher proportion of lower-income mort- gages made to lower-income borrowers without gages without PMI than do depository institutions. mortgage insurance. These institutions also pur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1005 4.—Continued Jumbo Total Type of holder Borrower Census tract Borrower Census tract and insurance status characteristic characteristic characteristic characteristic Lower Black or Lower Predominantly Lower Black or Lower Predominantly income Hispanic income minority income Hispanic income minority GOVERNMENT INSURED FHA .8 1.5 1.7 1.2 26.4 34.1 27.5 28.0 VA .1 ,1 .1 .1 7.4 9.6 6.9 6.6 WITHOUT MORTGAGE INSURANCE Originators Depository institution 14.0 37.5 38.5 36.8 23.6 1177..66 24.8 21.1 Independent mortgage company 6.3 5.5 S3 5.9 2.2 2.6 2.5 3.4 Purchasers Fannie Mae or Freddie Mac .. 2.6 3.6 5.7 10.1 16.0 11.3 13.0 14.5 Bank or savings association not affiliated with a mortgage originator 2.5 VI 4.0 2.9 .9 • •j jj .9 .9 Other 70.9 23.4 24.1 23.2 7.0 5.5 6.7 6.7 Affiliate, from an independent mortgage company .5 3.8 4.3 * 4.1 .8 .9 1.0 Affiliate, from a depository institution or its subsidiaiy 1.5 5.2 5.4 2.9 3.4 2.8 3.7 2.6 WITH PRIVATE MORTGAGE INSURANCE Originators Depository institution .3 5.4 4.1 5.0 3.2 3.7 3.6 3.9 Independent mortgage % company .1 t.3 .7 Sill!! i »i .8 5 .9 Purchasers Fannie Mae or Freddie Mac .. .0 1.2 .6 1.6 5.8 7.3 6.2 7.2 Bank or savings association not affiliated with a mortgage originator — .0 .9 .9 .6 .2 iiijpi .3 .3 Jf: Other .5 5.6 3.2 3.6 1.3 1.7 1.3 1.6 Affiliate, from an independent AAUffiilUia m uftp o V r ) t f g rH a n g vmU e al c o Or m t pU p nnC a « n pii y Uf ftjUrvU l y .0 .6 .2 .3 llllHI HH .1 institution or its ^ jj : •. ' •: • subsidiary .0 1.6 1.2 .8 1.0 1.2 1.0 : 12 Total 100 100 100 100 100 100 100 ____10_0 ___ chased or originated about 39 percent of the mort- mortgages relative to its share of such mortgages gages extended to black or Hispanic borrowers extended to lower-income borrowers; this finding without mortgage insurance. As described above, suggests that, as with Fannie Mae and Freddie the FHA's role was greatly diminished because of Mac, some of these borrowers may have more limits on the size of loans that can be FHA-insured. wealth than is typical of a lower-income borrower. In the VA's risk portfolio, the share of GSEOeligible mortgages extended to lower-income and Jumbo Loans to black or Hispanic borrowers is greater than the share of FHA-eligible mortgages so extended be- Few jumbo mortgages were extended to lowercause, although it is less restrictive on loan size, the income borrowers or to borrowers purchasing VA still applies relatively flexible underwriting homes in lower-income census tracts (table 1), and standards. However, the VA's share of mortgages the lower-income borrowers that did have such extended to borrowers in lower-income neighbor- mortgages presumably had substantial wealth to hoods is significantly smaller for GSEO-eligible qualify them for the loans. Almost all jumbo moit- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1006 Federal Reserve Bulletin • November 1995 gages for lower-income borrowers and census ments and closing costs and who do not usually tracts were extended without PMI (table 4) and qualify for a mortgage with PMI. The FHA can were sold for private mortgage securitizations reach large numbers of these mortgage borrowers (table 4, "Other") or held in portfolio by deposi- because it receives the benefits of government subtory institutions. sidy and does not have to earn a competitive return Similarly, the few jumbo mortgages extended on equity. to black or Hispanic borrowers were often held Do private-sector institutions, which must earn a by depository institutions in their portfolio; about competitive return on equity, also serve large num- 5 percent of jumbo loans went to such borrowers or bers of lower-income and minority borrowers? The to census tracts characterized as predominately mi- 1994 data indicate that depository institutions and nority (table 1). Only 0.2 percent of jumbo loans their affiliates were as significant as the FHA in the carried FHA insurance (table 2), and they were provision of mortgages to lower-income borrowers probably for multifamily properties in high-cost and to borrowers purchasing properties in lowerareas. Almost half of FHA jumbo loans were made income neighborhoods. However, the FHA reached to black or Hispanic borrowers (table 3). a higher proportion of black and Hispanic borrowers and of borrowers purchasing homes in minority neighborhoods. One interpretation of this pattern is CONCLUSION that depository institutions have had substantial success creating mortgage products for lower- Who bears the credit risk of mortgage lending for income borrowers with few assets but who meet the purchase of owner-occupied homes? By merg- other underwriting guidelines, whereas compared ing HMDA data with data from PMI companies, with the FHA, they have had less success developwe created a unique database that allowed us to ing mortgages that incorporate more flexible stancount the total number of mortgages that were dards for a wider range of underwriting criteria. originated by institutions in metropolitan areas dur- One of our expectations was that Fannie Mae ing 1994 as well as the number of such mortgages and Freddie Mac, the government-sponsored entercovered by private mortgage insurance. By identi- prises, would promote homeownership among fying mortgages insured by PMI, we could more lower-income households to a greater extent than precisely assess the distribution of the credit risk of would purely private-sector entities. The evidence, mortgage lending. however, indicates that in terms of risk holdings Depository institutions bore the credit risk of of such mortgages, Fannie Mae and Freddie Mac about 28 percent of the mortgages originated in did not outperform private-sector entities such as 1994. Fannie Mae and Freddie Mac together, the depositories. The difference may arise because FHA, and the PMI companies each bore roughly Fannie Mae and Freddie Mac, unlike depositories, 17 percent of the credit risk. In addition, depository generally have no interactions with borrowers and institutions were less likely than other private- are not located in the neighborhoods where the sector entities to use PMI. mortgages are originated; thus they lack the oppor- To address the question of who serves lower- tunity to look beyond traditional measures of risk. income or black or Hispanic mortgage borrowers A surprising element in the data is the apparent requires, by our definition, the determination of success of nondepository private-sector mortgage who bears the credit risk of their mortgages. Judged purchasers in providing a method for investors by the proportions of mortgages extended to these to serve the mortgage needs of lower-income and groups in an institution's mortgage credit risk port- of black or Hispanic borrowers. These efforts folio (risk portfolio), as well as by the market share accounted for a relatively small share of the mortaccounted for by an institution's risk portfolio, gages extended to these borrowers in 1994; but the FHA is a major provider of service to lower- these risk portfolios, which seem to have been income and black or Hispanic mortgage borrowers. created by private-sector securitizers, had a higher This result was to be expected because the FHA proportion of such mortgages among FHA-eligible generally insures the mortgages of borrowers who mortgages than did the risk portfolio of Fannie Mae currently have few assets available for down pay- and Freddie Mac. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1007 APPENDIX: Disclosure statements for each PMI company are SUMMARY OF THE 1994 PMI DATA publicly available at its corporate headquarters and at the central depository in each metropolitan In 1993 the Mortgage Insurance Companies of statistical area in which the HMDA data are held. America (MICA) requested and arranged for the The central depository also has aggregate data for Federal Financial Institutions Examination Council all of the companies active in that MSA. In addi- (FFIEC) to process data from private mortgage tion, the PMI data are available from the Federal insurance companies regarding applications for Reserve Board through its HMDA Assistance Line mortgage insurance and to produce disclosure (202-452-2016). reports for the public.27 The MICA request was a This appendix summarizes the PMI data for calresponse to growing public and congressional inter- endar year 1994.28 Beginning with the release of est in learning more about the activities of PMI the 1995 PMI data, these types of summary tables firms as they relate to issues of fair lending, afford- will appear each year in the Financial and Business able housing, and community development. Statistics section of the September issue of the To gather information for these disclosures, each Federal Reserve Bulletin. PMI company records data in a loan application register for PMI applications acted on in a given period. The information covers the action taken on The 1994 PMI Data the application (approved, denied, withdrawn, or file closed); the purpose of the mortgage for which For 1994, the eight PMI companies that are insurance was sought; the race or national origin, actively writing home mortgage insurance submitthe sex, and the annual income of the mortgage ted their data to the FFIEC through MICA. In total, applicant(s); the amount of the mortgage; and the these companies acted on 1,483,576 applications geographic location of the property securing the for insurance: 1,176,044 to insure home purchase mortgage. The FFIEC summarizes the information mortgages on single-family properties and 307,532 for the public in disclosure statements that have to insure mortgages for refinancing an existing formats similar to those created for financial institu- mortgage (table A.l). tions covered by the Home Mortgage Disclosure The total number of privately insured loans was Act. only slightly lower than that in 1993, but the composition changed in that refinancings were much less prevalent. This pattern agrees with changes in 27. Founded in 1973, MICA is the trade association for the PMI industry. The costs to the FFIEC for receiving and processing the data, preparing disclosure statements and other reports, and dis- 28. An analysis of the 1993 data is in Glenn B. Canner, Monisha seminating the data are being covered by the PMI companies Mittal, and Wayne Passmore, "Private Mortgage Insurance," Fedthrough MICA. eral Reserve Bulletin, vol. 80 (October 1994), pp. 883-99. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1008 Federal Reserve Bulletin • November 1995 loan composition evidenced in HMDA data. From Mortgage Insurance extended across all regions of 1993 to 1994 the number of applications for con- the country (table A.2). Similarly, the ranking of ventional refinancings fell nearly 51 percent, the four largest firms in the industry varied little by whereas the number of applications for conven- region. The four largest firms were present in all tional home purchase loans increased almost regions and seemed generally not to be focused 23 percent (data not shown in tables). disproportionately on any given region (memo The two largest PMI companies, Mortgage Guar- item). (An exception was the relative concentration anty Insurance Corporation and GE Capital Mort- of Mortgage Guaranty Insurance in the Midwest— gage Insurance Corporation, accounted for more particularly the Great Lakes area). than half of the applications for PMI and of the Smaller firms generally had a more regional oripolicies written in 1994. By and large, the distribu- entation, with Amerin Guaranty more active in the tions of applications received and of policies writ- West and Triad Guaranty Insurance Corporation ten among the PMI companies for insurance to and Republic Mortgage Insurance more active in back home purchase loans and refinancings were the South (table A.2, bottom portion). One comsimilar, although Mortgage Guaranty Insurance and pany, Commonwealth Mortgage Assurance Com- Republic Mortgage Insurance Company were pany, seemed to focus on both the West and the somewhat more likely to receive applications for South. The distribution of PMI policies in 1994 insurance for home purchase loans than for followed the distribution of home sales that year refinancings. (comparison of the bottom two rows of the table). The large share of PMI activity accounted for by However, homebuyers in the South seemed to be Mortgage Guaranty Insurance and GE Capital less likely than buyers in other regions to use PMI. A.2. PMI policies written for home purchase loans, distributed by insurance company and by region of the country, 1994 Percent Company West Midwest All' Distribution by company Amesrriinn Guaranty . 4.2 1.0 L2 imonwealth Mortgage Assurance ... 9.5 3.1 7.8 9.7 7.3 23.2 27.1 29.7 30.4 27.6 'insurance 24.1 38.0 22.4 25.3 27.4 15.6 IM 13.4 15.6 13.7 8.8 8.5 12.3 4.5 9.2 .3 1.4 2.4 IMiPPlli 1.3 14.3 9.8 l H M M M R HB 13.0 11.8 100 100 100 100 100 * MEMO Largest two companies2 47.3 65.1 52.1 55.7 55.0 Largest four companies3 712 86.0 76.4 84.3 80.5 Distribution by region 53.6 14.1 21.6 10.7 100 30.8 11.2 36-1 21.9 100 19.8 25.8 36.3 18.1 100 20.7 36.5 100 26.9 21.4 100 22.4 24.2 100 6.2 29.0 100 United Guaranty 28.7 21.8 18.2 100 • All companies 23.5 26.2 16.4 100 Mc.«v c,l« in IQOd 22.9 24.9 14.2 100 mmm NOTE. Regions are defined by the Bureau of the Census and contain only 2. Mortgage Guaranty Insurance and GE Capital Mortgage Insurance. whole states; see U.S. Department of Commerce, Statistical Abstract of the 3. Mortgage Guaranty Insurance, GE Capital Mortgage Insurance, PMI United States: 1994 (Government Printing Office, 1994), map on inside front Mortgage Insurance, and United Guaranty. cover. SOURCE. FFIEC. 1. Row totals differ from those shown in table A. 1 because information on region was not available for roughly 2.4 percent of the PMI policies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1009 Most applications for mortgage insurance per- seeking insurance for loans to purchase homes and tained to loans of less than $150,000 (table A.3). those who applied for insurance to refinance an More than 90 percent of all applications for insur- existing loan. In particular, the proportion of insurance were for mortgages that were less than or ance applicants for refinancings who were in the equal to the loan size limits established for Fannie highest income grouping (income greater than Mae and Freddie Mac (first memo item). The aver- 120 percent of their MSA median family income) age size of the home purchase mortgages for which was significantly larger (59 percent) than the comprivate mortgage insurance was sought was parable proportion of insurance applicants for home $115,925, and that of the refinancings was purchase mortgages (48 percent). This difference $124,407. probably reflects the higher proportion of first- Compared with all conventional home mortgage time, and perhaps younger, homebuyers in the applications in 1994 (table A.3, size statistic items), home purchase category. those involving PMI were, on average, larger for Like the distribution of applications for conboth home purchase loans and refinancings. In ventional home purchase loans and refinancings particular, PMI companies handled a much smaller observed in the 1994 HMDA data, most applicants proportion of applications for mortgages under for loans backed by PMI were white (about 80 per- $50,000, partly because this category includes cent), and roughly half were seeking insurance for loans for mobile homes, which are in the conven- mortgages to be secured by properties located in tional home mortgage totals but are rarely insured predominantly white neighborhoods (neighborby the PMI industry. hoods with a minority population of less than 10 percent). Overall, about 60 percent of the applicants were seeking insurance to help buy a home or Characteristics of Applicants for PMI to refinance a mortgage on a property located in the non-central city portion of MS As. In 1994, roughly two-thirds of all applicants for The distribution of applications received by the PMI had incomes that were at or above the median individual PMI companies according to the income for the MSA in which the property securing the and the race or ethnic group of the borrower generloan was located (table A.4). The distributions of ally reflected the national distribution (table A.5). PMI applicants by income differed between those The differences among the companies were, for the A.3. PMI applications, grouped by purpose of loan and distributed by size of loan, 1994 HHi Home purchase Home refinance Size of loan Privately insured Privately insured (dollars) MEMO: All' (percent) Number Percent Number Percent ——•— Less than 50,000 104,138 8.9 16,183 5.3 50,000-74,999 207,651 17.7 52,651 17.1 75,000-99,999 225,282 19.2 55,203 18.0 100,000-149,999 365.089 31.0 100,507 32.7 150,000-199,999 169,600 14.4 49,945 16.2 200,0® or more 104,284 8.9 33,043 10.7 Total 1,176,044 100 307,532 100 MEMO Size conformance2 1,091,775 92.8 91.6 90.5 Nonconforming 84,269 7 2 8.4 9.5 Size statistic (dollars)3 Mean 115,925 106,120 Median 105,000 78,000 78,(XX) 1. Based on all conventional home mortgages reported in 1994 HMDA 3. For applications on which loan size was reported. data. SOURCE. FFIEC. 2. Loans of up to $203,150 conform with size limits imposed on Fannie Mae and Freddie Mac. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1010 Federal Reserve Bulletin • November 1995 most part, minor and may have partly reflected the in lending to higher proportions of lower-income regional orientation or the business strategy of the and minority applicants. company. For example, Amerin Guaranty Corporation is concentrated in the West and has a business strategy of delegating the underwriting decision to Disposition of Applications the lender.29 Both characteristics may have resulted for Mortgage Insurance PMI companies approved most of the applications 29. For example, if a lender has additional information about an for insurance they acted on during 1994—roughly applicant that is not adequately reflected in standard mortgage 87 percent of applications for insurance to back documentation and that causes the lender to believe the applicant is home purchase loans and 88 percent for refinanccreditworthy, then the lender may use Amerin Guaranty. Analysis of PMI activity by region of the country indicates that ings (table A.6). Among the applications for insurapplicants of Hispanic origin accounted for a relatively large share of all applications for insurance to buy homes for each company in the West. However, Amerin Guaranty received a particularly large in the West were of Hispanic origin, roughly twice the proportion share of its insurance applications from Hispanic mortgage appli- of Hispanic applications received by other PMI companies in this cants. In 1994, nearly one-quarter of Amerin Guaranty's customers region (data not shown in tables). A.4. PMI applications, grouped by purpose of loan and distributed by characteristics of applicant and of census tract in which property is located, 1994 Home purchase Home refinance CChhaarraacctteerriissttiicc Number j Percent Number Percent WBS^^SBBBBi APPLICANT •••• Race or ethnic group American Indian or Alaskan Native 3,669 1,609 Asian or Pacific Islander 30,201 3.1 12.229 5.1 Black 57.124 6.0 12,305 5.1 Hispanic 65,928 6.9 14,794 6.1 White 776,939 80.9 193,832 80.2 Other 4,645 1.476 mmmmKml Joint (white and minority) 21,527 2.2 5,324 2.2 Total 960,033 100 241,569 toe Income (perventage of MSA median)' Less than 80 160,795 20.2 28,453 11.3 Si 80-99 127,930 16.0 34306 13.6 tm-tw 127.404 16.0 39.983 15.9 M<W THAN fjfi 381,597 47.8 149,432 59.3 Total 797,726 100 252,174 100 CENSUS TRACT Racial composition (minorities as percentage of population) Less than 10 408.009 50.3 103,009 40.7 10-19 181,964 22.4 61,111 24.2 HHi 20-49 146,265 18.0 59,651 23,6 ilw 50-79 47.151 5.8 19.138 7.6 MIS 80-100 27.335 3.4 10,084 4.0 lip Ibtai 810,724 160 252,993 160 Income2 Lower 84,800 10.5 23,893 9.5 Middle 405,210 50.0 130,170 51.5 Upper 320,077 39.5 98,632 39.0 Total 810,087 106 252,695 100 Location" Central city 324,738 40.1 92,667 36.6 Non-central city 486,018 59.9 160,329 63.4 Total 810,756 100 252,996 too NOTE. Not all characteristics were reported for all loans. median family income for MSA. Middle: 80 percent to 120 percent. Upper: 1. MSA median is median family income of the metropolitan statistical more than 120 percent. area (MSA) in which the property related to the loan is located. 3. For census tracts located in MS As. 2. Lower: median family income for census tract less than 80 percent of SOURCE. FFIEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1011 Multiple Applications Among the 1,176,044 applications for insurance for home of only two records, indicating that lenders typically did purchase loans in 1994, 80,655 (6.9 percent) appear to not submit a given application to more than two PMI have been multiple or "duplicate" applications. Among companies. the 307,532 applications for insurance to back refinanc- Applications from those of Hispanic, black, and Asian ings that year, 17,764 (5.8 percent) appear to have been ancestry—and from applicants not in the highest income multiple applications. Multiple applications were identi- category—were more likely than those in other categofied through a search of the data on mortgage insurance ries to be sent to multiple PMI companies (compare applications for records with the identical census tract, table A.4 with the table below). In addition, denial rates purpose of loan, race or ethnic status, applicant income, were substantially higher for all categories of applicants and loan size. In identifying matches on applicant income with multiple application records (compare table A.6 and loan size, differences of $1,000 or less were allowed. with the table below). In the overwhelming majority of cases, a match consisted Distribution and denial rate of PMI applications sent to more than one company, by purpose of loan and characteristics of applicant and of census tract in which property is located, 1994 Percent Home purchase Home refinancing Characteristic Distribution Denial rate Distribution Denial rate All applications sent to more than one company ... 100 32.8 100 34.8 Race or ethnic group of applicant American Indian or Alaskan Native .1 47.7 .3 50.0 Asian or Pacific Islander 3.9 45.2 7.2 38.5 Black 7.9 48.8 5.8 45.5 Hispanic 11.2 45.2 9.6 45.3 White 74.6 28.9 74.5 32.3 Other .3 54.6 .4 45.0 Joint (white and minority) 2.0 40.1 2.2 35.9 Total 100 100 Income of applicant (percentage of MSA median)' 25.5 13.8 45.6 80-99 18.4 31.9 15.8 35.4 100-120 17.1 29.3 16.9 34.3 More than 120 39.0 30.8 53.5 32.0 Total 100 100 Racial composition of census tract (minorities as percentage of population> Less tban 10 42.1 24.7 30.0 26.8 10-19 23.4 32.8 24.2 32.8 20-49 21.5 40.5 29.5 39.3 50-79 8.0 44.8 10.2 44.2 80-100 4.9 48.7 6.1 45.0 Total 100 100 Income of census tract2 Lower 12.0 44.9 11.6 46.8 Middle 50.1 33.7 51.2 35.4 Upper.. 37.9 27.8 37.2 30.4 Total 100 100 Location of census tract3 Central city 39.2 34.3 35.3 36.6 Non-central city 60.8 31.8 64.7 33.9 Total 100 100 MEMO Number of applications sent to more than one company 80,655 17,764 1. MSA median is median family income of the metropolitan statistical of median family income for MSA. Middle: 80 percent to 120 percent. area (MSA) in which the property related to the loan is located. Upper: more than 120 percent. 2. Lower: median family income for census tract less thaa 80 percent 3. For census tracts located in MSAs. SOURCE. FfWC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1012 Federal Reserve Bulletin • November 1995 A.5. PMI applications, grouped by insurance company and purpose of loan and distributed by characteristics of applicant and of census tract in which property is located, 1994 Percent Amerin Commonwealth GE Capital Mortgage Guaranty Mortgage Assurance Mortgage Insurance vjudidaiy insurance CChhaarraacctteerriissttiicc Purchase Refinance Purchase Refinance Purchase Refinance Purchase Refinance APPLICANT Race or ethnic group American Indian or Alaskan Native .4 .5 .3 .5 .7 1.5 .2 .3 Asian or Pacific Islander 4.3 6.8 3.8 6.8 3.1 4.8 2.7 3.7 Black 6.0 7.7 6.2 5.2 7.1 5.3 4.8 4.7 Hispanic 14.5 19.2 8.9 8.6 7.1 5.4 5.4 4.5 White 69.8 59.6 77.4 75.3 80.0 80.9 84.0 84.0 Other 1.5 1.8 .8 .9 .0 .2 .6 .6 Joint (white and minority) 3.5 4.5 2.6 2.9 2.0 1.9 2.3 2.1 Total 100 100 100 100 100 100 100 100 Income (percentage of MSA median) Less than 80 20.5 15.9 21.8 11.9 20.9 10.3 20.6 11.9 80-99 17.0 15.0 16.8 14.3 15.8 12.6 16.5 14.2 100-120 18.1 17.9 16.1 16.3 15.2 14.9 16.2 16.4 More than 120 44.5 51.2 45.3 57.4 48.1 62.1 46.7 57.5 Total 100 100 100 100 100 100 100 100 CENSUS TRACT Racial composition (minorities as percentage of population) Less than 10 35.6 20.6 44.4 32.1 48.5 42.4 56.7 47.3 10-19 23.2 19.5 23.4 24.6 22.7 25.1 21.0 • 22.9 20-49 23.0 33.4 20.6 28.1 18.8 22.1 15.0 20.1 50-79 10.6 15.2 7.0 9.6 6.2 6.8 4.7 6.4 7.6 11.3 4.6 5.6 3.8 3.6 2.5 3.3 80-100 100 100 100 100 100 100 100 100 Total Income 14.5 16.3 10.9 10.5 10.8 8.8 10.4 9.2 Lower 51.0 53.8 50.2 51.7 49.0 49.5 51.4 53.2 Middle 34.5 29.9 38.9 37.8 40.2 41.8 38.2 37.6 Upper 100 100 100 100 100 100 100 100 NOTE. See notes to table A.4. ance on home purchase loans, 9.7 percent were However, the evaluation of disposition patterns for denied by the insurer, and 2.5 percent were with- mortgage insurance applications is complicated bedrawn by the lender; in a relatively small percent- cause lenders may submit an application for insurage of cases, the application file was closed after ance to more than one PMI company at a time. additional information needed by the insurer to Multiple applications are potentially more common make a decision was not provided. For home refi- for PMI than for mortgages because PMI companancing applications, the denial rate was 8.5 per- nies do not charge lenders to submit an application, cent, and the withdrawal rate was 2.8 percent. whereas lenders generally charge mortgage appli- Compared with the PMI data for the fourth quarter cants for each submission. of 1993, denial rates for all of 1994 were down Overall, nearly 7 percent of the applications in slightly, about 1 to 2 percentage points. the 1994 data appear to have involved multiple In general, the relatively high approval rates for applications (see box "Multiple Applications"). PMI are not surprising: Lenders submitting applica- Analysis of these applications suggests that lenders tions for insurance know the prospective borrow- were submitting the applications primarily of marer's credit circumstances and the credit underwrit- ginally qualified applicants to more than one PMI ing guidelines used by the PMI companies.30 company. For example, among the multiple applications, the denial rate was roughly 33 percent for 30. The approval rate for Amerin Guaranty Corporation is 100 percent because the firm delegates the decision to approve an Guaranty receives notification about applications for insurance application for insurance to the lending institution. Thus, Amerin only when a lender has selected it as the insurance provider. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1013 A.5.—Continued PMI Republic Triad United Mortgage Insurance Mortgage Insurance Guaranty Insurance Guaranty CChhaarraacctteerriissttiicc Purchase Refinance Purchase Refinance Purchase Refinance Purchase Refinance llllipMB I APPLICANT m Race or ethnic group American Indian or Alaskan Native . .3 qRMIm HMNPI • 1H .3 MHHI .2 3.4 5.1 2.4 4.4 1.6 2.1 4.0 7.2 Black 5.9 5.4 5.3 5.0 5.4 5.2 6.0 4.6 Hispanic 7.4 6.0 6.4 6.7 2.5 2.7 7.4 8.1 White 79.8 79.9 83.6 81.3 88.4 87.8 79.0 76.2 Other .7 .9 H H Im .5 .4 .2 .8 1.0 Joint (white end minority) ... 2.4 2.3 1.5 1.6 1.5 1.7 2.6 2.6 Dotal .. 100 100 100 100 100 100 100 100 | Income (percentage of MSA median) M Less than 80 19.8 11.6 18.8 12.2 17.6 16.1 18.3 10.4 80-m 16.1 13.9 15.7 14.8 15.4 15.1 15.2 12.8 100-120 16.4 16.4 16.3 16.9 17.1 16.6 16.0 15.4 More than 120 47.7 58.1 49.2 56.2 49.9 52.2 50.4 61.4 Ibid tee 100 100 100 100 100 100 100 CENSUS TRACT Racial composition <minorities as percentage of population) Less than 10 48.7 41.7 50.5 38.3 55.5 49.6 48.1 32.4 10-19 23.4 24.1 22.4 24.0 24.8 24.1 22.9 24.5 20-49 18.7 22.9 18.7 26.0 15.4 19.2 19.4 28.6 50-79 6.0 7.4 5.6 7.7 2.9 5.0 0.1 9.5 80-100 ... 3.2 3.8 2.9 4.0 1.4 2.0 3.5 4.8 Total ... 100 100 100 100 100 100 100 100 /name Lower 10.6 9.9 9.4 9.6 7.3 8.3 10.0 9.9 Middle 51.2 53.3 49.2 51.5 48.9 52.8 48.7 50.6 UPP« 38.3 36,8 41.4 38.9 43.8 38.9 41.3 39.6 • 100 100 100 100 100 100 100 insurance for home purchase mortgages compared volatility in housing prices. In contrast, many with 8 percent for all home purchase applications MSAs in the Midwest and some in the South excluding the multiple applications (the denial rate had denial rates well below the national average for all home purchase applications, 9.7 percent, is (for example, Minneapolis-St. Paul, 2.4 percent; shown in table A.6). Detroit, 4.1 percent; Milwaukee, 4.0 percent; and Although most applications for PMI were ap- Richmond, 4.2 percent.) proved in 1994, there were substantial differences across metropolitan areas. In particular, applications for insurance for home purchase mortgages Disposition by Applicant Characteristics secured by properties located in all California MSAs and in many Florida MSAs had relatively In general, the amount and the stability of income high denial rates. In California, weak housing mar- can be expected to affect an applicant's ability to ket conditions, combined with the aggressive pur- qualify for mortgage insurance, although they are suit of customers by mortgage originators, may usually considered in relation to the existing and have led to higher proportions of marginally quali- proposed debt burden rather than as absolute meafied applicants for mortgage insurance in these sures of creditworthiness. Other factors considered markets. The explanations for high denial rates in in evaluating creditworthiness include the amount Florida are less certain, but suggestions range from of assets available to meet down-payment and closa high proportion of condominiums and second ing cost requirements, employment experience, and homes to a local economy that is prone to greater credit history. On average, lower-income house Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1014 Federal Reserve Bulletin • November 1995 holds have fewer assets and lower net worth and Examining the racial or ethnic characteristics of experience more frequent employment disruptions applicants indicates that greater proportions of than do higher-income households; this com- Asian, black, and Hispanic applicants than of white bination of factors often results in a denial of an applicants had their applications for private mortapplication. gage insurance denied in 1994. The denial rate for The 1994 data indicate that the majority of appli- Native American applicants was about the same as cations for PMI were approved but that the rates of that for white applicants. For example, for insurapproval and denial varied somewhat among appli- ance for home purchase loans, 16.3 percent of cants grouped by their income (table A.6). For Asian applicants, 18.4 percent of black applicants, example, in 1994 nearly 90 percent of the appli- 19.4 percent of Hispanic applicants, 9.9 percent of cants for insurance for home purchase loans whose Native American applicants, and 9.3 percent of incomes placed them in the highest income group white applicants were denied. The rate of denial were approved for insurance, compared with also generally increased as the proportion of minor- 84 percent in the lowest income group (income less ity and lower-income residents in a neighborhood than 80 percent of their MSA median). Approval increased. and denial rates for applicants from middle-income Differences in PMI denial rates for applicants groups were similar to those for the highest income grouped by race or ethnicity reflect various factors, group. The same patterns were found for applica- including the proportion of each group with relations for insurance of refinancings. tively low income. In 1994, 19 percent of the white A.6. PMI applications, grouped by characteristics of applicant and of census tract in which property is located and distributed by purpose and disposition of loan, 1994 Percent Home purchase Home refinance CChhaarraacctteerriissttiicc Approved Denied Withdrawn File closed Total Approved Denied Withdrawn File closed Total Total 87.1 9.7 2.5 100 88.0 8.5 2.8 APPLICANT Race or ethnic group American Indian or Alaskan Native 87.1 9.9 2.4 .6 100 91.4 6.5 1.6 .5 100 i or Pacific Islander 78.8 16.3 3.6 1.3 100 80.0 14.3 3.9 1.7 100 76.9 18.4 3.4 1.3 100 83.1 12.9 3.1 .9 100 Hispanic 76.0 19.4 3.3 1.3 100 77.0 17.9 3.9 1.2 100 White 87.5 9.3 2.5 .7 100 88.2 8.2 2.8 .7 100 Other 79.7 16.1 2.8 1.4 100 81.6 14.2 2.8 1.4 100 Joint (white and minority) 83.6 12.7 2.8 .9 100 84.0 SS12.3B 3.0 .7 100 Income (percentage of MSA median) Less than 80 83.7 13.5 2.3 .6 100 83.4 13.1 2.8 .6 100 80-J99 87.9 9.5 2.0 J 100 87.6 9.2 2.6 .6 100 100-120 89.1 8.3 2.1 J 100 88.9 8.2 2.3 .6 100 More than 120 89.6 7.6 2.2 .6 100 89.0 7.5 2.8 .8 100 CENSUS TRACT Racial composition (minorities as j ft-. percentage of population) | 91.8 6.0 1.8 .4 100 92.4 4.9 10-19 ..... 87.7 9.4 2.3 6 100 88.2 8.4 20-49 83.5 13.1 2.6 .8 100 84.3 11.7 50-79 79.6 16.5 3.0 1.0 100 81.6 13.9 80-100 .... 76.7 19.1 3.1 1.1 100 78.8 16.5 Income Lower 82.4 14.2 2.6 .8 100 83.5 IZ5 3.1 .9 100 Middle 88.1 9.2 2.1 .5 100 88J 8.5 2.6 .7 100 Upper 89.8 7.6 2.1 .5 100 89.0 7 A 2.7 .7 • 1 • 00 iflfffiiltMM Location CCeennttrraall cciittyy 87.6 9.6 2.2 .6 100 87.8 8.7 2.7 tssiiifj 100 NNoonn--cceennttrraall cciittyy 88.6 8.8 2.1 .6 100 88.3 8.3 2.7 .7 too NOTE. See notes to table A.4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Risk and the Provision of Mortgages 1015 applicants who applied for insurance had incomes for the same individuals reduces denial rates about that were less than 80 percent of the median family 3 to 4 percentage points for minorities and about income for their MSA (data not shown in tables). 2 percentage points for whites. The figures for other groups of applicants in the The pattern of denial rates by race or ethnicity same income category were roughly 33 percent for differs from the pattern in HMDA data in one black, 32 percent for Hispanic, and 19 percent for notable way. In HMDA data, Asian applicants for Asian applicants. Differences in the distribution of home purchase loans have a lower denial rate than applicants for insurance by income account for that for white applicants.31 The high proportion of some of the differences in denial rates. However, Asian applicants from California may help account within each income group, white applicants had for their relatively high denial rate for PMI. Among lower rates of denial than Asian, black, or Hispanic Asians applying for home purchase loans where the applicants (table A.7). MSA location of the property was reported, 34 per- Denial rates are also influenced by differences in cent were seeking insurance for mortgages to buy the frequency of multiple applications for insur- homes in California. (Only 14 percent of all PMI ance for the same applicants across racial or ethnic applications were for loans to buy homes in Caligroups. Generally, applications by minorities are fornia.) Slightly more than 24 percent of the Asian more likely to be submitted to more than one PMI company because minority applicants often have lower incomes or more complex credit circum- 31. For example, according to the 1994 HMDA data, the denial rate for Asian applicants was 12 percent, and the denial rate for stances. Excluding multiple applications submitted white applicants was 16.4 percent. A.7. PMI applications, grouped by income and race of applicant and distributed by purpose and disposition of loan, 1994 Percent 1. Income percentages are the percentages of the median family income of SOURCE. FFIEC. the MSA in which the property related to the loan is located. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1016 Federal Reserve Bulletin • November 1995 applicants from California were denied PMI, com- Although these disparities raise questions, the pared with a denial rate of only 12 percent for extent of any discrimination cannot be determined Asians outside California (data not shown in from the data submitted by the PMI companies tables). because they provide little information about the The difference in PMI denial rates between white characteristics of the properties that applicants seek applicants and Asian, black, and Hispanic appli- to purchase or refinance or of the financial circumcants may lead some observers to conclude that stances of the applicants. For example, the applirace influences the disposition of applications.32 cants' levels of debt, their credit histories, and their employment experiences are not disclosed. Without information about these circumstances and 32. Unlike many originators of mortgages, PMI companies do about the specific underwriting standards used by not ordinarily have direct contact with prospective borrowers and PMI companies, the fairness of the decision prowould be aware of race and ethnic identities only from application cess cannot be assessed. documents forwarded for their consideration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1017 Industrial Production and Capacity Utilization for September 1995 Released for publication October 17 summer by the unusually hot weather, fell 5.4 percent as demand for electricity returned to more Industrial production declined 0.2 percent in Sep- normal levels. Manufacturing output rose 0.2 pertember after having gained 1.1 percent in August. cent on advances in the production of most durable The output of utilities, which was boosted over the goods industries; however, the output of non- Industrial production indexes Twelve-month percent change Twelve-month percent change 5 + 0 5 10 10 Materials 5 5 + Products Nondurable 0 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 — ^ Production - 100 Production - 100 80 80 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 80 80 70 70 J I I L J I I L J I J I I I I I I L 1981 1983 1985 1987 1989 1991 1993 1995 1981 1983 1985 1987 1989 1991 1993 1995 All series are seasonally adjusted. Latest series, September. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1018 Federal Reserve Bulletin • November 1995 Industrial production and capacity utilization, September 1995 Industrial production, index, 1987=100 Percentage change Category 1995 19951 Sept. 1994 to Juner July' Aug.' Sept. t June1 July' Aug.' Sept. f Sept. 1995 Total 121.4 121.5 122.9 122.6 .0 .2 1.1 -.2 3.1 Previous estimate 121.2 121.6 123.0 -.1 .3 1.1 Major market groups Products, total2 118.5 118.4 119.7 119.5 .3 .0 1.1 -.2 2.7 Consumer goods 114.9 114.2 115.8 115.2 .5 -.6 1.4 -.5 1.9 Business equipment 155.5 156.9 158.8 159.5 .4 .9 1.2 .4 6.7 Construction supplies 107.2 107.7 108.3 109.0 .1 .4 .6 .6 .4 Materials 125.8 126.4 127.7 127.5 -.4 .5 1.0 -.2 3.7 Major industry groups Manufacturing 123.2 123.1 124.3 124.6 .0 .0 .9 .2 3.1 Durable 130.5 130.9 132.7 133.5 .3 .3 1.4 .6 4.9 Nondurable 115.0 114.5 114.9 114.7 -.4 -.4 .3 -.2 .9 Mining 100.4 101.6 100.4 101.0 -.2 1.2 -1.2 .6 .9 Utilities 122.0 123.9 129.3 122.3 .0 1.5 4.3 -5.4 5.0 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1994 1995 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, SSSeeepppttt... 111999999444 11996677--9944 11998822 11998888--8899 tttooo Sept. June' July' Aug.' Sept. P SSSeeepppttt... 111999999555 Total 82.0 71.8 84.9 84.2 83.7 83.6 84.2 83.8 3.5 Previous estimate 83.7 83.7 84.3 Manufacturing 81.3 70.0 85.2 83.6 82.8 82.5 83.0 82.9 4.0 Advanced processing 80.7 71.4 83.5 81.8 81.3 81.0 81.7 81.6 4.5 Primary processing . 82.5 66.8 89.0 88.2 86.6 86.4 86.3 86.3 2.7 Mining 87.4 80.6 86.5 89.8 90.1 91.2 90.2 90.7 -.1 Utilities 86.7 76.2 92.6 86.0 89.1 90.3 94.2 89.0 1.4 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. durables, particularly of textiles, apparel, and paper, of durable goods other than automotive products declined. At 122.6 percent of its 1987 average, increased again. The output of nondurable conindustrial production in September was 3.1 percent sumer goods excluding energy products has higher than it was in September 1994. Capacity changed little, on balance, since the end of last utilization declined 0.4 percentage point, to year. The production of business equipment, which 83.8 percent. For the third quarter as a whole, grew rapidly in the previous two months, increased overall industrial production rose 3.5 percent at an 0.4 percent; for the quarter, the output in this sector annual rate after having declined 2.3 percent in the grew 8.7 percent at an annual rate, with gains second quarter. The weather-related surge in utility concentrated in industrial equipment and informaoutput accounted for about one-fourth of the gain tion processing equipment. The output of construcin the total index in the third quarter. tion supplies has strengthened recently, with the When analyzed by market group, the data show monthly increase over the third quarter averaging that the production of consumer goods, held down about 0.5 percent. by a drop-back in the output of electricity for The production of materials decreased 0.2 perresidential use, fell 0.5 percent in September. The cent as declines in energy and nondurable goods production of motor vehicles, which had increased materials more than offset the gain in durable goods sharply in August, rose a bit further. In other cate- materials. The return to a more normal level of gories of the consumer goods sector, the production electricity generation more than accounted for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 1019 sharp drop in energy materials. Among nondu- 2.0 percent annual rate, after having dropped rables, the output of textile and paper materials 2.9 percent in the second quarter. declined, and the production of chemical materials The factory operating rate edged down 0.1 perremained sluggish. The gain in durable goods mate- centage point in September, to 82.9 percent, and rials mainly reflected continued strength in the on balance has changed little in recent months. production of parts for high-technology equipment. The utilization rates in both advanced-processing When analyzed by industry group, the data show and primary-processing industries were about that the output of manufacturing rose 0.2 percent in unchanged in September. Nonetheless, the operat- September after having gained 0.9 percent in ing rate for advanced-processing industries was August. For the quarter as a whole, production in 0.6 percentage point above its recent low in July, the manufacturing sector grew 2.5 percent at an whereas the utilization rate for primary-processing annual rate, not quite reversing the 3.3 percent loss industries had been continuing to drift lower. of the second quarter. For September, as for the The output of electricity fell back as temperaentire third quarter, the gains in manufacturing tures, which had been abnormally high in July and output were concentrated in durables. The produc- August, reached more typical levels; as a result, the tion of nondurable manufacturing declined again in operating rate for utilities fell from 94.2 percent to September, with the output of textiles, apparel, and 89.0 percent. The utilization rate for mining rose paper posting the most significant declines. The 0.5 percentage point because of a sharp increase in output of nondurables fell for the third quarter, at a coal output. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1020 Statements to the Congress Statement by Alan Greenspan, Chairman, Board of deposits currently insured by SAIF. The merging of Governors of the Federal Reserve System, before a recapitalized SAIF with a sound BIF would then the Subcommittee on Financial Institutions and consolidate The Financing Corporation (FICO) Consumer Credit of the Committee on Banking and bond obligation of SAIF into the new insurance Financial Services, U.S. House of Representatives, fund and effectively obligate past BIF members to September 21, 1995 participate on a pro rata basis. Discussions about merging BIF with a recapital- I am pleased to be able to appear here today to offer ized SAIF and sharing the FICO interest obligation my thoughts on the proposed legislation to recapi- among the members of both deposit insurance talize the Savings Association Insurance Fund funds raise the question of retaining separate bank (SAIF), to merge SAIF and the Bank Insurance and thrift charters. If a persuasive public policy Fund (BIF), and to merge the thrift and the com- case could be demonstrated to maintain two charmercial bank charters. ters, a merged BIF and SAIF would have to adjust As I suggested to this subcommittee at the begin- to this structure. However, not only has the policy ning of August, two insurance funds with sharply necessity for residential mortgage specialization at different premiums cannot be sustained. Such thrift institutions been diminished, but also such a structure is inherently unstable. Competitive narrow portfolio focus has induced excessive portdepository institutions cannot differentiate them- folio risk. selves by the quality of the deposit insurance that As I indicated to this subcommittee last month, is offered because it is the same insurance regard- while thrift institutions were dominant and innovaless of whether it is from BIF or SAIF. In either tive mortgage lenders in the post-World War II case, it is government-mandated and government- years, by the 1970s, market forces and technology sponsored deposit insurance. For identical insur- began to erode the original mortgage financing ance, it is rational that depository institutions seek purpose of specialized thrift institutions and, hence, the one available at the lowest cost. If a substantial of their charter. Equally important, events over the difference in deposit premiums exists between past decade have been associated with market SAIF and BIF, the institutions paying the higher forces and innovations that have reduced the relapremium will pursue insurance offered by the other tive yield on the standard residential mortgage, insurance fund unless there is some other reason to while at the same time other market forces have remain with their current fund. In the process, the made deposit rates increasingly competitive. In disadvantaged fund becomes increasingly vulner- such an environment, significant questions are able to insolvency as its premium base declines. raised about the risk profile and economic viability The only winners created by the looming deposit of any institution that by law or regulation is premium difference between SAIF and BIF depos- required to place most of its assets in mortgage its will be those depositories able to "game" the instruments and fund them in the deposit market. system and leave SAIF first. The solution to this Two conclusions are clear. First, the nexus problem is to end this game and merge SAIF and between thrift institutions and housing largely has BIF. been broken without any evident detriment to the A prerequisite to the merger of BIF and SAIF is availability of housing finance. Second, a public to put SAIF on a sound basis. There seems to be a policy that induces—let alone requires—thrift instigeneral agreement to accomplish this recapitaliza- tutions to specialize in mortgage finance threatens tion by a special one-time assessment on those the continued viability of many of these entities— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1021 particularly those without wide and deep deposit hence, should be removed going forward. Morefranchises, tight cost controls, and the ability, when over, the tax recovery of the reserve buildup from necessary, effectively to originate and sell standard this past tax subsidy should be eliminated. In realmortgages that cannot profitably be held long-term. ity, this reserve was always a subsidy and never A broader charter for thrift institutions—such as a really a true bad debt reserve. The possibility of commercial bank charter that lets them hold a any significant recapture of lost tax revenue to the wider range of assets—thus would seem to be good U.S. Treasury has been hypothetical at best because public policy, and the bill before you confronts the of the tax-induced high marginal cost to thrift instichallenge of creating one charter. tutions of reducing their mortgage portfolios and, The specific details of a charter consolidation as a result, triggering the so-called bad debt recapmust blend economic, market, and legal ingredi- ture. Indeed, without a fresh start, the current bad ents. The specific blend is less important than mak- debt recapture provisions would be a significant ing measurable progress in developing a set of barrier for entities that wish to diversify. A penalty insured depository institutions subject to as identi- should not be charged institutions striving to cal a set of rules and incentives as possible. For respond rationally to market realities and to legislathrift institutions, this means a trade-off between tion designed to induce portfolio diversification. current permissible activities and greater portfolio The Board realizes that legislation will require flexibility and viability. For banks, the historical compromises and skillful craftsmanship. But we inequity created by competition from insured should not lose sight of first principles. A deposit depository institutions with wider permissible insurance system that focuses the attention of banks activities and opportunities would be reduced, if and thrift institutions on the relative status of their not eliminated. For public policy, the potential funds, and a system that rewards those who can greater diversification of thrift portfolios could jump ship first, is, to say the least, counterproducstrengthen and make more flexible that class of tive. What is needed is a deposit insurance system depository institution. With a legislative thrust to whose status is unquestioned so that the deposishift thrift institutions to more bank-like opera- tories can appropriately focus their attention on the tions, it seems prudent and reasonable that thrift extension and management of credit in our econinstitutions be supervised and regulated as banks. omy. A merger of BIF with a recapitalized SAIF To facilitate such supervision and regulation, the accomplishes that objective and provides the Conbill before you creatively establishes a mutual com- gress with the opportunity to strengthen and rationmercial bank category, to ease the shift from thrift alize our depository institutions. Congressional to bank status for many institutions, and permits action to provide a more bank-like thrift charter states to continue their thrift charter but treats such and bank-like taxation would be consistent with entities as if they were commercial banks for fed- market trends and stronger depositories and should eral purposes. not reduce mortgage credit flows. There are several A common charter will not accomplish its objec- variations of the bill structure and timing impletive without elimination of tax rules that not only mentations that would effectively resolve the curinduce mortgage specialization but also penalize rent difficulties affecting our deposit insurance thrift institutions that try to adopt more diversified system. The bill before you is one of them. It portfolios. The special bad debt reserve treatment would strengthen our deposit insurance system and that provides tax benefits—and, hence, subsidy—to create a framework for the evolution of thrift mortgage lending by thrift institutions no longer institutions. serves a perceivable public policy function and, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1022 Federal Reserve Bulletin • November 1995 Statement by Alan Greenspan, Chairman, Board of At midyear, the uncertainties about the dimen- Governors of the Federal Reserve System, before sion of the inventory adjustment, and thus about the Committee on Banking, Housing, and Urban the prospects for real GDP over the near term, were Affairs, U.S. Senate, September 22, 1995 considerable. Nonetheless, it seemed that the point of maximum risk of undue weakness had been I am pleased to appear here today. In July, the passed and that moderate growth was likely to Federal Reserve submitted its semiannual report on resume in the second half of the year. As events monetary policy to the Congress.1 That report cov- unfolded, revised data indicated that overall activered in detail the Federal Reserve's assessment of ity in the second quarter was not quite so weak as economic conditions and the forecasts of the gover- suggested by the initial estimates, largely because nors and the Reserve Bank presidents for economic final sales were stronger. Moreover, the available growth and inflation. This morning, I would like to statistical indicators for the current quarter are conoffer my views on recent developments. sistent with a firmer pace of economic growth. In As I reported earlier to the House Banking Com- the labor market, for example, payrolls have posted mittee, a moderation in economic activity in 1995 moderate increases, on average, over the past was inevitable after the frenetic pace of late 1994. couple of months, and the unemployment rate has It was also necessary if we were to avoid the edged back down to 5.6 percent. creation of major inflationary instabilities. By the Industrial production also turned up in August, end of 1994, pressures on resources were contribut- after a sustained period of weakness that extended ing to sizable increases in delivery lead times for back to last winter. The surge in output should raw materials and intermediate goods and steep probably be discounted somewhat, given that this markups in their prices; overtime in manufacturing summer's unseasonably hot weather provided a was extensive. Fortunately, economic growth has transitory boost to the output of electricity. Moreslowed appreciably this year, inflation risks have over, in a number of industries in which efforts to receded, and, as a consequence, the threat of severe pare stocks are continuing, inventory-sales ratios recession has declined. remained on the high side in July. Even so, the I also noted that one could not expect the tran- production data suggest that, on balance, manufacsition to a more sustainable growth path to be turers were confident enough about their sales entirely smooth. Rough patches were also encoun- prospects—and, in the main, comfortable enough tered in past economic expansions, typically with their inventory positions—to expand producbecause businesses did not fully anticipate the tion once again. changes in demand for output. The slowing in real The underlying trends in final sales are favorable gross domestic product growth at the beginning of overall, in part because of the considerable decline this year was precipitated by a weakening in con- in long-term interest rates and the sharp increase in sumer spending and housing construction, partly as stock prices this year. Retail sales have been rising a consequence of higher interest rates, and by the moderately, on average, since the spring, and home damper on net exports from the economic crisis in sales and starts have posted hefty gains. As for Mexico. But the risk of a more serious slowdown business investment, new orders for capital goods thereafter was exacerbated by the failure of inven- have fallen of late, but backlogs remain sizable. It tory investment to match the slackening in spend- thus appears that purchases of equipment will coning. Indeed, although stocks in the aggregate tinue to grow, though perhaps at a slower pace than remained modest, a few major industries, such as in the recent past. In addition, rising building permotor vehicles and home goods, found themselves mits point to further expansion in nonresidential with substantial excesses. Attempts to control construction. inventories triggered cutbacks in orders and output Meanwhile, the inflation picture is looking more that, in turn, depressed employment and income in favorable than it did in early 1995. Core the spring. inflation—as proxied by the twelve-month change in the consumer price index (CPI) excluding food and energy—has moved back down to around 1. See "Monetary Policy Report to the Congress," Federal 3 percent, after a bulge earlier in the year, and there Reserve Bulletin, vol. 81 (August 1995), pp. 151-1 A. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 1023 appears little reason to expect much change in Some observers have expressed fears that current inflation trends in the near term. Increases in labor efforts to eliminate the federal budget deficit will costs have remained modest even though unem- prove a hindrance to the economy. I do not share ployment has fallen to levels that history suggests those fears. Long-term interest rates have fallen a might be associated with some acceleration in com- great deal this year, in part because of the growing pensation. In addition, the deceleration in manufac- probability that a credible, multiyear deficit reducturing activity this year has helped to ease pres- tion plan will be adopted. The declines in rates are sures on capacity and to stabilize, and in many already helping to stimulate private, interestareas reduce, lead times on deliveries. And with sensitive spending—providing, in effect, a shock supply and demand in global commodity markets absorber for the economy. Clearly, the Federal in better balance, prices of materials and supplies Reserve, in appraising evolving developments, will are no longer rising rapidly. In light of these devel- continue to take the likely effects of fiscal policy opments, the firming in monetary policy in 1994 into account. But I have no doubt that the net result and early 1995 appears to have been sufficient to of moving the budget into balance will be a more head off a ratcheting up of inflation. As I have efficient, more productive U.S. economy in the long often stated, containing inflation, and over time run. eliminating it, is the main contribution the Federal I continue to be impressed by the growing public Reserve can make to enhancing the nation's long- recognition of the importance of deficit reduction— run economic performance. and the commitment on the part of the President On the whole, the near-term prospects for the and the Congress to bring the budget back into U.S. economy have improved in recent months, in balance in the reasonably near future. The chalpart because the strong increases in financial mar- lenge is enormous: The budget deliberations will ket values this year are likely to provide substantial be contentious, and the deadlines now are extraorsupport to household and business spending. But dinarily tight. But these pressures must not be the outlook is not without concern. Firms' desired allowed to prevent us from taking concrete action inventory levels are extremely difficult to gauge, to implement a program of credible multiyear defiand the remaining adjustment process could play cit reduction. Failure to take such action would out more negatively than we anticipate. Moreover, signal that the United States is not capable of although the economies of our key trading partners putting its fiscal house in order, with adverse and are recovering somewhat, they are still expanding serious consequences for financial markets and only moderately, on average, and, as a conse- long-term economic growth. • quence, the external sector is unlikely to contribute positively to real gross domestic product growth in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1024 Announcements PROPOSED ACTIONS policy of periodically reviewing its regulations, to more effectively carry out the purposes of the The Federal Reserve Board on September 13, 1995, act. Comments are requested by November 17, requested comment on proposed amendments to 1995. Regulation M (Consumer Leasing), which imple- The Federal Reserve Board on September 22, ments the Consumer Leasing Act. The act requires 1995, also requested public comment on a prolessors to provide uniform cost and other disclo- posed revision to its Regulation K (International sures about consumer lease transactions. The pro- Banking Operations) that will ease the burden on posal is the result of the increased use of automo- U.S. banks seeking to make investments in overbile leasing over the past several years and the seas companies. Comments were requested by Board's review of Regulation M, pursuant to its October 30, 1995. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1025 Minutes of the Federal Open Market Committee Meeting Held on August 22,1995 A meeting of the Federal Open Market Committee Mr. Madigan, Associate Director, Division of was held in the offices of the Board of Governors Monetary Affairs, Board of Governors Mr. Simpson, Associate Director, Division of of the Federal Reserve System in Washington, Research and Statistics, Board of Governors D.C., on Tuesday, August 22, 1995, at 9:00 a.m. Ms. Johnson, Assistant Director, Division of International Finance, Board of Governors Present: Mr. Ramm,1 Section Chief, Division of Research Mr. Greenspan, Chairman and Statistics, Board of Governors Mr. McDonough, Vice Chairman Ms. Low, Open Market Secretariat Assistant, Mr. Blinder Division of Monetary Affairs, Board of Mr. Hoenig Governors Mr. Kelley Mr. Lindsey Ms. Strand, First Vice President, Federal Reserve Mr. Melzer Bank of Minneapolis Ms. Minehan Mr. Moskow Messrs. Beebe, Goodfriend, Rolnick, Rosenblum, Ms. Phillips Sniderman, Mses. Tschinkel and White, Senior Ms. Yellen Vice Presidents, Federal Reserve Banks of San Francisco, Richmond, Minneapolis, Dallas, Cleveland, Atlanta, and New York Messrs. Boehne, Jordan, McTeer, and Stern, respectively Alternate Members of the Federal Open Market Committee Mr. Meyer, Vice President, Federal Reserve Bank of Philadelphia Messrs. Broaddus, Forrestal, and Parry, Presidents By unanimous vote, the minutes of the meeting of the Federal Reserve Banks of Richmond, of the Federal Open Market Committee held on Atlanta, and San Francisco respectively July 5-6, 1995, were approved. The Manager of the System Open Market Account reported on developments in foreign Mr. Kohn, Secretary and Economist Mr. Bernard, Deputy Secretary exchange markets and on System foreign currency Mr. Coyne, Assistant Secretary transactions during the period July 6, 1995, through Mr. Gillum, Assistant Secretary August 21, 1995. By unanimous vote, the Commit- Mr. Mattingly, General Counsel tee ratified these transactions. Mr. Baxter, Deputy General Counsel The Manager also reported on developments in domestic financial markets and on System open Ms. Brown, Messrs. Davis, Dewald, Hunter, market transactions in government securities and Lindsey, Mishkin, Promisel, Siegman, federal agency obligations during the period July 6, Slifman, and Stockton, Associate Economists Mr. Fisher, Manager, System Open Market 1. Attended portion of meeting relating to the Committee's Account economic discussion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1026 Federal Reserve Bulletin • November 1995 1995, through August 21, 1995. By unanimous capacity continuing to expand rapidly, total utilivote, the Committee ratified these transactions. zation of industrial capacity dropped somewhat The Committee then turned to a discussion of the further. economic and financial outlook and the implemen- Despite edging down in July, revised data for tation of monetary policy over the intermeeting earlier months suggested that total retail sales had period ahead. A summary of the economic and risen appreciably on balance since early spring. financial information available at the time of the The July decline entirely reflected weakness in meeting and of the Committee's discussion is motor vehicles; elsewhere, spending on furniture provided below, followed by the domestic policy and appliances continued to firm, and purchases of directive that was approved by the Committee other durable goods and of apparel rose sharply. and issued to the Federal Reserve Bank of New Housing market activity picked up considerably in York. June, with sales of both new and existing homes The information reviewed at this meeting sug- increasing significantly. Housing starts were up gested that economic activity was expanding more strongly in July after changing little in previous rapidly after increasing at a sluggish pace in the months. second quarter. Consumer spending appeared to be Shipments of nondefense capital goods, led by growing at a moderate rate, housing demand surging purchases of computing equipment, continseemed to be rebounding sharply, and business ued to grow rapidly in the second quarter. Howinvestment remained on a solid uptrend. With ever, business spending for transportation equipefforts to adjust inventories still under way, indus- ment, notably heavy trucks and aircraft, was trial production had changed little in recent months, lackluster. New orders for nondefense capital goods and employment gains had been modest. After edged lower in the second quarter after rising increasing at elevated rates in the early part of the sharply early this year, although the elevated level year, consumer and producer prices had risen more of order backlogs pointed to considerable further slowly in recent months. Advances in labor com- expansion of spending on business equipment over pensation costs remained subdued. coming months. Nonresidential construction activ- Nonfarm payroll employment rose further in ity posted a solid gain in the second quarter, and July after a modest second-quarter gain; the July recent data on permits suggested further increases advance was held down by continuing employment in building activity in coming months. losses in manufacturing that were widespread Business inventory accumulation slowed markby industry. Outside of manufacturing, payrolls edly further in June, and inventory-to-sales ratios continued to increase at a relatively slow pace in for most types of business establishments declined July; reduced job growth in the services industry again. In manufacturing, the aggregate inventoryreflected smaller increases in employment at busi- to-sales ratio was only a little above the historical ness and health service establishments. The civilian low reached around the end of 1994. In the wholeunemployment rate rose slightly in July, returning sale sector, the ratio of stocks to sales in June was to its second-quarter average of 5.7 percent. slightly below the top of the range prevailing over Industrial production edged higher in July, but it the last year. At the retail level, inventories changed was unchanged on balance over the three months little in June, and the inventory-to-sales ratio for ending in July after declining in earlier months. this sector was near the middle of its range for Manufacturing output fell further in July; a sharp recent years. contraction in the production of motor vehicles and The nominal deficit on U.S. trade in goods and parts accounted for the entire decline. Within services widened in June, with exports declining manufacturing, output of business equipment other marginally more than imports. For the second quarthan motor vehicles continued to advance as addi- ter as a whole, the deficit was substantially larger tional strong gains were recorded in the production than in the first quarter. Exports were up considerof office and computing equipment. The output of ably in the second quarter despite declines in non-auto consumer goods weakened; a cutback in automotive products shipped to Canada and the production of home furnishings offset an Mexico, but imports rose even more, with increases increase in the manufacture of appliances. With widely spread across most major trade categories. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 1027 In the major foreign industrial countries, economic Immediately after the meeting, open market growth appeared to have ranged from weak to operations were directed toward implementing the moderate in the second quarter, and the limited slight easing in the degree of reserve pressure that available evidence suggested that subdued expan- had been adopted by the Committee. Thereafter, sion continued into the third quarter. Economic operations were conducted with a view to maintainactivity remained particularly weak in Japan. In ing this slightly more accommodative reserve pos- Europe, expansion apparently was still under way, ture, and the federal funds rate remained near though somewhat unevenly across countries. 53A percent over the intermeeting interval. Adjust- Consumer prices rose more slowly in June and ment plus seasonal borrowing averaged somewhat July, with food and energy price movements hav- above anticipated levels, largely reflecting heavy ing little effect on the overall index; price increases adjustment borrowing activity on the August 2 for nonfood, non-energy items were somewhat reserve settlement day when demands for excess smaller than those seen earlier in the year. Over the reserves were unexpectedly large. twelve-month period ended in July, however, this Treasury yields declined across the maturity measure of consumer inflation rose at about the spectrum in response to the announcement of the same rate as in the preceding twelve months. Pro- easing action on July 6; market participants perducer prices of finished goods edged lower on ceived the policy move as an indication of the balance in June and July, reflecting substantial Federal Reserve's concern regarding the state of declines in prices of finished energy goods. Exclud- the economy and, based on historical precedent, as ing food and energy, producer prices rose more likely the first in a series of easing steps. Subseover the year ended in July than over the preceding quently, however, interest rates rebounded in year. At earlier stages of production, increases in response to incoming economic data that were seen producer prices had diminished sharply in recent as suggesting stronger economic performance and months, perhaps suggesting some abatement of reduced chances for further monetary policy easpressures on production capacity and prices. Total ing. On balance, short-term market interest rates hourly compensation for private industry workers posted mixed changes over the intermeeting period, increased somewhat more in the second quarter while intermediate- and long-term rates rose apprethan in the first; however, the rise in compensation ciably. With unexpectedly favorable corporate costs for the year ended in June was smaller than earnings reports outweighing the effects of higher that for the previous year, primarily reflecting interest rates, major indexes of equity prices were slower growth in costs of benefits. Average hourly up moderately on balance over the period. earnings grew faster in July than in June; for the In foreign exchange markets, the trade-weighted year ending in July, earnings rose somewhat more value of the dollar in terms of the other G-10 than in the preceding year. currencies appreciated substantially over the inter- At its meeting on July 5-6, 1995, the Committee meeting period. The dollar's gain occurred partly adopted a directive that called for some slight in response to the improving outlook for the U.S. easing in the degree of pressure on reserve posi- economy and the related rise in long-term interest tions and that included a tilt toward possible further rates in the United States. Declines in long-term easing of reserve conditions during the intermeet- yields in the major European industrial countries ing period. The directive stated that in the context probably contributed to a higher value of the dollar of the Committee's long-run objectives for price in terms of the German mark and most other stability and sustainable economic growth, and giv- European currencies. In addition, the dollar appreing careful consideration to economic, financial, ciated sharply against the Japanese yen, largely in and monetary developments, slightly greater response to actions by Japanese authorities to reserve restraint might or slightly lesser reserve reduce official interest rates, to encourage capital restraint would be acceptable during the intermeet- outflows from Japan, and to make large intervening period. The reserve conditions associated with tion purchases of dollars during a period when the this directive were expected to be consistent with dollar already was rising against the yen. moderate growth in M2 and M3 over coming M2 and M3 continued to register sizable months. increases in July and appeared to be expanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1028 Federal Reserve Bulletin • November 1995 considerably further in August. The recent strength growth in final demand was generating an improveof M2 seemed to reflect in part the relatively ment in overall business activity, despite a more greater appeal of interest rates on M2 assets in the rapid adjustment in inventory investment than wake of the declines in market interest rates that many had expected. This configuration suggested had taken place this year, particularly at longer that the risks of recession or an extended period of maturities. Robust M3 growth was associated with subpar growth were now reduced, and sustained the continuing requirements of commercial banks expansion at a moderate pace was seen as the most for additional wholesale funds needed to meet per- likely course for the economy. Although the risks sisting strong loan growth. For the year through to the economy now seemed to be more evenly July, M2 expanded at a rate in the upper half of its balanced than at the time of the July meeting, they range for 1995, and M3 grew at a rate above its were still sizable in both directions. In particular, upwardly revised range. Total domestic nonfinan- uncertainties about federal budget policies and their cial debt had been in the upper half of its monitor- effects on the economy remained substantial. With ing range in recent months. respect to prices, members noted that the recent The staff forecast prepared for this meeting sug- pause in the expansion had eased pressures on gested that growth in economic activity would pick resources, and the economy appeared to be in a up from the weak pace of the second quarter. The better position to accommodate moderate growth inventory adjustment process appeared to be well over the forecast horizon without adding to inflaunder way, and moderate expansion of final sales tion. Indeed, some members were optimistic that would be supported by the favorable wealth and growth of the economy at a pace in line with their interest-cost effects of the extended rally in the expectations would be consistent with modest furdebt and equity markets. In response to improved ther decreases in inflation. Others expressed confinancial conditions and balance sheets, consumer cern, however, that the uncertainties surrounding spending was anticipated to keep pace with the the outlook for the economy included questions growth of incomes. Homebuilding was expected to about the persistence of inflationary sentiment and strengthen somewhat in response to the earlier the prospects for further progress toward stable decline in mortgage rates and the related improve- prices over the next several quarters. ment in housing affordability. Accompanying Members gave particular attention to the ongoslower growth of sales and profits, business invest- ing discussions involving the Congress and the ment in new equipment and structures was pro- Administration regarding future federal budget jected to slow from the very rapid pace of the past deficits. There was a great deal of political support few years, although the lower cost of capital and for reducing the federal deficit substantially over the ready availability of financing would help to the years ahead; indeed, in the view of one member sustain appreciable expansion in such investment. the political dynamics might very well result in Export growth would pick up in response to some larger reductions than many now anticipated. expected strengthening in the economies of major Nonetheless, the actual outcome remained particutrading partners. Considerable uncertainty sur- larly uncertain. From the perspective of its macrorounded the fiscal outlook, but the staff continued economic stabilization effects and its implications to anticipate the greater degree of fiscal restraint for monetary policy, enactment of legislation that had been projected at the time of the last involving substantial fiscal restraint would raise the Committee meeting. In the staffs judgment, the issue of fiscal drag; however, the latter's impact on prospects for some further easing of pressure on the economy would have to be judged in the conlabor and other resources suggested that price infla- text of attendant adjustments in market interest tion likely would not deviate significantly from rates and, more broadly, in the light of emerging recent trends. economic conditions. A legislative package con- In the Committee's discussion of current and taining strong fiscal restraint measures would be prospective economic developments, the members expected to ease pressures in debt markets— focused on recent indications of some strengthen- indeed, enhanced prospects in this regard were ing in the expansion of economic activity after a probably already contributing to reduced long-term period of limited growth during the spring. Further interest rates. On the other hand, a package that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 1029 included only modest deficit reduction might well nomic activity and reduced pressures on capacity. lead to upward pressure on interest rates. The con- Even so, with the slowing occurring only gradually tinuing uncertainty concerning the size of future as projects under construction were completed, this budget deficits might be complicated by a delay in sector of the economy was expected to remain a passing appropriations legislation in the months positive factor in the overall expansion of ecoahead, with potentially dislocative effects on many nomic activity over the next several quarters. The federal government operations. Accordingly, fed- members also anticipated more moderate growth in eral budget developments were seen as the major outlays for producers' durable equipment over the factor likely to bear on the performance of the forecast horizon in conjunction with slower growth economy over coming months and quarters, and in final sales. However, current trends pointed to these developments might well differ considerably further sizable increases in outlays for office and from current forecasts. computing equipment, and such expenditures were Members described current business conditions expected to buttress still considerable overall across the nation as ranging from sluggish in some growth in spending for business equipment, though regions to robust in a number of others, with at at a pace well below the exceptional rate experileast some improvement occurring recently in enced in recent years. many parts of the country. There were anecdotal Members commented that the adjustment in reports of strengthening retail sales in numerous business inventories appeared to have progressed a areas, with the notable exception of motor vehicles, considerable distance but probably was not yet and of relatively high levels of confidence among completed for the business sector as a whole. Noneconsumers and many retailers. Sustained growth theless, inventory investment seemed likely to in consumer spending was seen as a reasonable become a more neutral factor in its effects on the expectation for the projection period through 1996. overall economy as desired inventory ratios were However, diminished pent-up demands and possi- reached in an increasing number of industries. The bly the increasing level of consumer indebtedness recent tendency for order patterns to stabilize was a would tend to inhibit consumer spending, keeping tentative indication of such a development. In any its growth below that in recent years. These nega- event, the recent upturn in final sales, apart from its tive factors might be offset to some extent by the probable effects on desired inventory levels, had wealth effects of the rise in stock market prices and allowed a larger-than-expected amount of invenby a higher level of housing activity that should tory correction to occur without preventing the help to support demands for household durables. economy from regaining at least moderate expan- Members referred to recent indications, includ- sionary momentum. ing widespread anecdotal reports, of considerable The external sector of the economy remained gains in housing activity after a period of pro- subject to particular uncertainty. The members gennounced weakness during the earlier months of the erally viewed some improvement in the country's year. Homebuyers were reacting favorably to the net export position as a reasonable expectation, but declines in rates on fixed-rate mortgages from their several questioned the potential for much expanhighs around the turn of the year. Homebuilders in sion of exports to many of the nation's important a number of areas were reported to be optimistic trading partners. While recent policy actions in about the outlook for further gains in housing Japan might have diminished concerns about the demand, at least for single-family homes. The pros- outlook for overall exports, a number of members pects for multifamily construction seemed less indicated that they continued to anticipate fairly promising; while robust activity characterized such limited growth in foreign demands for U.S. goods construction in a number of areas, still high and services, with the result that the external sector vacancy rates and associated overbuilding across was likely in their view to make a relatively small, much of the nation suggested little, if any, overall if any, contribution to the growth of the domestic impetus from this sector of the housing industry. economy over the projection period. The expansion in nonresidential construction was Members generally viewed the near-term outprojected to slow from its pace in recent quarters in look for inflation as more encouraging than it had line with more moderate growth in overall eco- appeared to be earlier this year. The pause in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1030 Federal Reserve Bulletin • November 1995 expansion during the spring had eased pressures on At the conclusion of the Committee's discussion, resources, as evidenced in part by anecdotal reports all the members indicated that they would vote for of lessening labor shortages in some areas and a directive that called for maintaining the existing reduced use of overtime work by some firms, and degree of pressure on reserve positions. They also the higher rate of inflation experienced during the favored a directive that did not include a presumpearly months of the year seemed unlikely to persist. tion about the likely direction of any adjustments to The members differed somewhat, however, in their policy during the intermeeting period. Accordingly, assessment of the longer-term outlook for inflation. in the context of the Committee's long-run objec- Some emphasized the reduction that had occurred tives for price stability and sustainable economic in inflationary pressures, and with labor costs growth, and giving careful consideration to ecoremaining subdued they felt that economic growth nomic, financial, and monetary developments, the in line with current forecasts should prove compat- Committee decided that slightly greater or slightly ible with moderating inflation over time. Further, lesser reserve restraint would be acceptable during the recent appreciation of the dollar should contrib- the intermeeting period. The reserve conditions ute marginally to a more favorable inflation out- contemplated at this meeting were expected to be come after some lag. Other members expressed consistent with more moderate growth in M2 and reservations about the prospects for an improved M3 over the months ahead. inflation performance over coming quarters. They At the conclusion of the meeting, the Federal cited indications of persisting inflationary expecta- Reserve Bank of New York was authorized and tions such as the recent weakness of the bond directed, until instructed otherwise by the Commitmarkets and survey results that pointed to expecta- tee, to execute transactions in the System Account tions of some rise in inflation from current levels. in accordance with the following domestic policy They also referred to the possibility that favorable directive: labor cost developments would not persist indefinitely in an economy that was operating in the The information reviewed at this meeting suggests a vicinity of its potential. strengthening in the expansion of economic activity in the current quarter from the weak second-quarter pace. Turning to monetary policy for the intermeeting Nonfarm payroll employment increased in June and July period ahead, all the members accepted a proposal after declining in May; the advance was held down to maintain an unchanged degree of pressure in by continuing employment losses in manufacturing. The reserve markets and to adopt a directive that was civilian unemployment rate in July was at its secondnot biased in either direction with regard to poten- quarter average of 5.7 percent. Industrial production changed little in recent months after falling earlier while tial intermeeting adjustments. For the near term, capacity utilization was down somewhat further. Total current trends in economic activity and inflation retail sales have risen appreciably on balance since early appeared favorable and likely to remain so with an spring, but they edged down in July, reflecting weakness unchanged policy stance. A steady policy also in motor vehicles. Housing starts were up sharply in July seemed appropriate pending a clearer assessment after changing little in previous months. Orders for nondefense capital goods still point to considerable further of the outlook for fiscal policy. Over the longer expansion of spending on business equipment over comterm, the members generally believed that considing months; nonresidential construction has continued to eration would need to be given to an adjustment trend appreciably higher. The nominal deficit on U.S. in the Committee's policy stance, especially if trade in goods and services widened in the second quarsubstantial fiscal restraint were to be enacted. ter from its average rate in the first quarter. After increasing at elevated rates in the early part of the year, con- The extent to which an adjustment might be sumer and producer prices have risen more slowly in needed later in the stance of monetary policy— recent months. Advances in labor compensation costs characterized by some members as slightly to have remained subdued. the restrictve side at least in terms of the inflation- Short-term interest rates have posted mixed changes adjusted federal funds rate—would have to be since the Committee meeting on July 5-6, while assessed in terms of its consistency with the intermediate- and long-term rates have risen appreciably. Committee's continuing objectives of fostering In foreign exchange markets, the trade-weighted value of the dollar in terms of the other G-10 currencies price stability and promoting sustained economic appreciated substantially over the intermeeting period, growth. with the gain occurring since the beginning of August. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 1031 M2 and M3 continued to register sizable increases in In the implementation of policy for the immediate July and appeared to be expanding considerably further future, the Committee seeks to maintain the existing in August. For the year through July, M2 expanded at a degree of pressure on reserve positions. In the context of rate in the upper half of its range for 1995 and M3 grew the Committee's long-run objectives for price stability at a rate above its upwardly revised range. Total domes- and sustainable economic growth, and giving careful tic nonfinancial debt has grown at a rate in the upper half consideration to economic, financial, and monetary of its monitoring range in recent months. developments, slightly greater reserve restraint or The Federal Open Market Committee seeks monetary slightly lesser reserve restraint would be acceptable in and financial conditions that will foster price stability the intermeeting period. The contemplated reserve conand promote sustainable growth in output. In furtherance ditions are expected to be consistent with more moderate of these objectives, the Committee at its meeting in July growth in M2 and M3 over coming months. reaffirmed the range it had established on January 31- February 1 for growth of M2 of 1 to 5 percent, mea- Votes for this action: Messrs. Greenspan, sured from the fourth quarter of 1994 to the fourth McDonough, Blinder, Hoenig, Kelley, Lindsey, quarter of 1995. The Committee also retained the moni- Melzer, Ms. Minehan, Mr. Moskow, Mses. Phillips toring range of 3 to 7 percent for the year that it had and Yellen. Votes against this action: None. set for growth of total domestic nonfinancial debt. The Committee raised the 1995 range for M3 to 2 to It was agreed that the next meeting of the Com- 6 percent as a technical adjustment to take account of changing intermediation patterns. For 1996, the Commit- mittee would be held on Tuesday, September 26, tee established on a tentative basis the same ranges as in 1995. 1995 for growth of the monetary aggregates and debt, The meeting adjourned at 12:25 p.m. measured from the fourth quarter of 1995 to the fourth quarter of 1996. The behavior of the monetary aggregates will continue to be evaluated in the light of progress toward price level stability, movements in their Donald L. Kohn velocities, and developments in the economy and finan- Secretary cial markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1033 Legal Developments ORDERS ISSUED UNDER BANK HOLDING COMPANY in Louisiana, controlling deposits of approximately ACT $6.3 billion, representing approximately 17.8 percent of total deposits in commercial banking organizations in Orders Issued Under Section 3 of the Bank the state. Holding Company Act Competitive Considerations First Commerce Corporation New Orleans, Louisiana First Commerce and Central compete directly in the Alexandria, Louisiana, banking market ("Alexandria Order Approving Acquisition of a Bank Holding banking market").3 The Board has carefully considered Company the effects that consummation of this proposal would have on competition in that market, in light of all the First Commerce Corporation, New Orleans, Louisiana facts of record, including the number of competitors that ("First Commerce"), a bank holding company within would remain in the market, the increase in the concenthe meaning of the Bank Holding Company Act ("BHC tration of total deposits in commercial banking organiza- Act"), has applied under section 3 of the BHC Act tions4 in the market ("market deposits") as measured by (12 U.S.C. § 1842) to acquire all the voting shares of the Herfindahl-Hirschman Index ("HHI"),5 and certain Central Corporation ("Central"), and thereby acquire commitments made by First Commerce. Central Bank, both of Monroe, Louisiana.1 Upon consummation of the proposal, First Commerce Notice of these applications, affording interested per- would remain the largest depository institution in the sons an opportunity to submit comments, has been pub- Alexandria banking market. The HHI would increase lished (60 Federal Register 36,429, 40,180, and 41,073 401 points to 2708 and First Commerce would control (1995)). The time for filing comments has expired, 42.5 percent of market deposits upon consummation. In and the Board has considered the application and all order to mitigate the adverse competitive effect that comments received in light of the factors set forth in might result from consummation of this proposal, First section 3 of the BHC Act. Commerce has made appropriate commitments to divest First Commerce is the second largest commercial at least one branch in the Alexandria banking market banking organization in Louisiana, controlling deposits with deposits totalling at least $20.1 million. Upon comof $5.6 billion, representing approximately 15.8 percent pletion of the proposed divestitures either to a competiof the total deposits in commercial banking organiza- tor in the Alexandria banking market or an out-oftions in the state.2 Central is the seventh largest commer- market competitor, First Commerce would control no cial banking organization in Louisiana, controlling deposits of $715.9 million, representing approximately 2 percent of total deposits in commercial banking organi- 3. The Alexandria banking market is approximated by Grant and Rapides Parishes, both in Louisiana. zations in the state. Upon consummation of this proposal 4. Market deposit data are as of June 30, 1995. There are no thrift and all proposed divestitures, First Commerce would institutions operating in this market. become the largest commercial banking organization 5. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is above 1800 is considered to be highly concen- 1. First Commerce also proposes to acquire 9.8 percent of the trated. In such markets, the Justice Department is likely to chaloutstanding shares of First United Bank of Farmerville, Farmer- lenge a merger that increases the HHI by more than 50 points. The ville, Louisiana, from Central. These shares were acquired by Justice Department has informed the Board that a bank merger or Central in satisfaction of a debt previously contracted for in good acquisition generally will not be challenged (in the absence of other faith. Central received the approval of the Federal Reserve System factors indicating anticompetitive effects) unless the post-merger to acquire these shares from its subsidiary, Central Bank, on HHI is at least 1800 and the merger increases the HHI by more than July 14, 1995. 200 points. The Justice Department has stated that the higher than 2. State deposit data are as of December 31, 1994, updated to normal HHI thresholds for screening bank mergers for anticompetireflect the August 3, 1995, acquisition by First Commerce of tive effects implicitly recognize the competitive effect of limited- Lakeside Bancshares, Inc., Lake Charles, Louisiana. purpose lenders and other non-depository financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1034 Federal Reserve Bulletin • November 1995 more than 40.6 percent of market deposits, and the HHI decision, and, as such, may be enforced in proceedings would increase no more than 252 points to 2559. under applicable law. A number of factors indicate that this increase in The acquisition shall not be consummated before the concentration as measured by the HHI tends to overstate fifteenth calendar day following the effective date of this the competitive effects of this proposal. Upon consum- order, or later than three months after the effective date mation of this proposal, nine depository institutions of this order, unless such period is extended for good would remain in the Alexandria banking market, includ- cause by the Board, or by the Federal Reserve Bank of ing a subsidiary of the banking organization that cur- Atlanta, acting pursuant to delegated authority. rently is the largest in Louisiana. The Board also notes By order of the Board of Governors, effective that the Alexandria banking market is attractive for September 25, 1995. entry. Three banks have entered the market since December 31, 1990, and all these banks have experienced Voting for this action: Chairman Greenspan, Vice Chairman significant growth since entry. The banking market also Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen. has become less concentrated, with the two largest banks having lost market share since 1991. Bank profitability WILLIAM W. WILES in the Alexandria market was above the Louisiana state Secretary of the Board and Louisiana Metropolitan Statistical Area ("MSA") averages in 1994, and employment has been increasing Mercantile Bankshares Corporation in the Alexandria area. Baltimore, Maryland As in other cases, the Board also sought comments Order Approving Acquisition of a Bank from the Department of Justice on the competitive effects of this proposal. The Department of Justice indi- Mercantile Bankshares Corporation, Baltimore, Marycated that consummation of the proposal, with the proland ("Mercantile"), a bank holding company within the posed divestitures, is not likely to have a significantly meaning of the Bank Holding Company Act ("BHC adverse effect on competition. Act"), has applied under section 3 of the BHC Act For the reasons discussed above, and based on all the (12 U.S.C. § 1842) to acquire all the voting shares of facts of record, including the proposed divestitures, the The Sparks State Bank, Sparks, Maryland ("Bank"). Board concludes that consummation of this proposal Notice of the application, affording interested persons would not have a significantly adverse effect on competian opportunity to submit comments, has been published tion or the concentration of banking resources in the (60 Federal Register 37,897 (1995)).1 The time for filing Alexandria banking market or any other relevant bankcomments has expired, and the Board has considered the ing market. applications and all comments received in light of the factors set forth in section 3(c) of the BHC Act. Other Considerations The Board also concludes that the financial and managerial resources and future prospects of First Commerce, Central, and their respective subsidiaries are consistent 1. The Board received comments from an individual maintaining with approval of this proposal, as are other supervisory that notice of this proposal was inadequate, because it was not published in The Jeffersonian, a newspaper serving Baltimore factors the Board must consider under section 3 of the County, Maryland. The Board's Rules of Procedure (12 C.F.R. BHC Act. Considerations relating to the convenience 262.3(b)(l)(ii)(E)) require an applicant to publish notice in a newsand needs of the communities to be served also are paper of general circulation in the community where the head consistent with approval. offices of the largest subsidiary bank of the applicant, if any, or the applicant and each organization to be acquired are located. The Based on the foregoing, including the commitments head offices of Mercantile and its largest subsidiary bank are in made to the Board by First Commerce in connection Baltimore City, and the head office of Bank is in Baltimore County, with these applications, and in light of all the facts of both in Maryland. Notice of the proposal was published on July 10, record, the Board has determined that these applications 1995, in The Sun, a newspaper of general circulation in Baltimore City and Baltimore County, inviting public comment for a period of should be, and hereby are, approved. The Board's ap- 31 days. The record indicates that the circulation of The Sun is proval is specifically conditioned on compliance by First more than 15 times larger than that of The Jeffersonian in northern Commerce with all the commitments made in connec- Baltimore County where Bank and all of its branches are located. tion with these applications, including the divestiture In addition, the Board published notice of this proposal in the commitments. For the purpose of this action, the com- Federal Register, inviting public comment for a period of 24 days, as required by the Board's Rules of Procedure (12 C.F.R. mitments and conditions relied on by the Board in reach- 262.3(i)(l)). Based on all the facts of record, the Board concludes ing its decision are deemed to be conditions imposed in that notice was published in accordance with its Rules and that the writing by the Board in connection with its findings and public was adequately notified of this proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1035 Mercantile, with total consolidated assets of approxi- Bank is the 15th largest depository institution in the mately $5.9 billion, controls 16 banks in Maryland, three market, controlling deposits of $166.7 million, representin Virginia and one in Delaware.2 Mercantile is the ing less than 1 percent of total deposits in depository fourth largest commercial banking organization in Mary- institutions in the market. After consummation of the land, controlling approximately $4.3 billion in deposits, proposal, Mercantile would remain the third largest derepresenting 6.6 percent of total deposits in commercial pository institution, controlling deposits of $2.3 billion, banks in the state. Bank is the 30th largest commercial representing approximately 11 percent of the deposits in banking organization in the state, controlling approxi- depository institutions in the market. Upon consummamately $163.5 million in deposits, representing less than tion of this proposal, this market would remain moder- 1 percent of total deposits in commercial banks in the ately concentrated, as measured by the Herfindahlstate. Upon consummation of this proposal, Mercantile Hirschman Index ("HHI"), and the change in market would remain the fourth largest commercial banking concentration as measured by the HHI would not exceed organization in Maryland, controlling approximately the Department of Justice merger guidelines.5 In addi- $4.5 billion in deposits, representing approximately tion, 97 commercial banks and thrifts would remain in 7 percent of total deposits in commercial banking organi- the market after the proposed acquisition. In light of zations in the state. these facts and all other facts of record, the Board The Board received comments from two individuals concludes that consummation of this proposal is not ("Protestants") contending that Mercantile's acquisition likely to result in significantly adverse effects on compeof Bank would adversely effect competition, reduce the tition or the concentration of banking resources in the availability and quality of banking products in communi- Baltimore banking market or any other relevant banking ties served by Bank, and eliminate Bank's main office. market.6 The Board has carefully reviewed these comments in The Board has also reviewed Protestant's comments light of all the facts of record, including information on the availability and quality of banking products, in provided by Mercantile and relevant reports of examina- light of the records of performance of Mercantile and tion from Bank's primary federal supervisors. Bank under the Community Reinvestment Act Mercantile and Bank compete directly in the Balti- ("CRA").7 Mercantile's subsidiary banks and Bank all more, Maryland, banking market.3 Mercantile is the third largest banking or thrift organization ("depository institution") in the market, controlling deposits of 70 Federal Reserve Bulletin 743 (1984). Thus, the Board has $2.2 billion, representing approximately 10.5 percent of regularly included thrift deposits in the calculation of market share total deposits in depository institutions in the market.4 on a 50-percent weighted basis. See, e.g., First Hawaiian Inc., 11 Federal Reserve Bulletin 52 (1991). 5. The HHI would increase by 16 points to a level of 1143. Under the revised Department of Justice Merger Guidelines, 49 Federal 2. Asset data are as of June 30, 1995. State asset and deposit data Register 26,823 (June 29, 1984), a market in which the post-merger are as of December 31, 1994. HHI is between 1000 and 1800 is considered to be moderately 3. The Baltimore banking market is approximated by the Balti- concentrated. The Department of Justice has informed the Board more Ranally Metro Area ("RMA") and the rest of Harford County, that a bank merger or acquisition generally will not be challenged Maryland. Protestants contest the relevant banking market in this (in the absence of other factors indicating anticompetitive effects) case. The Board previously has noted that RMAs usually designate unless the post-merger HHI is at least 1800 and the merger indefined geographic localities that are demographically and commer- creases the HHI by more than 200 points. The Justice Department cially integrated and that they may be used as guides in defining has stated that the higher than normal HHI thresholds for screening relevant geographic banking markets. See St. Joseph Valley Bank, bank mergers for anticompetitive effects implicitly recognize the 68 Federal Reserve Bulletin 673 (1982). Bank operates in northern competitive effect of limited-purpose lenders and other non- Baltimore County, which is included in the Baltimore RMA. depository financial entities. Bank's main office is close to several major population centers in 6. Protestants suggest that Mercantile illegally operates in Pennthe banking market, including Cockeysville/Hunt Valley (fewer sylvania through a branch in Maryland that serves Pennsylvania than five miles south), Towson (ten miles south) and Baltimore residents. The Board notes that Bank and its branches are legally City (15 miles south). In addition, there is significant commuting located in Maryland and that neither federal nor state law prohibits from northern Baltimore County south to Baltimore City. Based on Bank or its branches from making loans at these locations to all the facts of record, the Board concludes that the Baltimore, customers living in Pennsylvania. Maryland, banking market, as defined above, is the relevant geo- 7. The CRA requires the federal financial supervisory agencies to graphic banking market because it consists of a localized area encourage financial institutions to help meet the credit needs of the where the banks involved offer their services and where local local communities in which they operate, consistent with their safe customers can practicably turn for alternatives. and sound operation. To accomplish this end, the CRA requires the 4. Market share data are as of June 30, 1994. Market share data appropriate federal supervisory authority to "assess the instituare based on calculations in which the deposits of thrift institutions tion's record of meeting the credit needs of its entire community, are included at 50 percent. The Board previously has indicated that including low- and moderate-income neighborhoods, consistent thrift institutions have become, or have the potential to become, with the safe and sound operation of such institutions," and to take significant competitors of commercial banks. See WM Bancorp, 76 that record into account in its evaluation of these applications. Federal Reserve Bulletin 788 (1990); National City Corporation, 12 U.S.C. § 2903. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1036 Federal Reserve Bulletin • November 1995 received "satisfactory" or "outstanding" records of per- The Board also concludes that the financial10 and formance in attempting to meet the credit needs of their managerial resources11 and future prospects of Mercancommunities under the CRA at the most recent examina- tile and Bank and other supervisory factors the Board tions of their CRA performance by federal supervisory must consider under section 3 of the BHC Act12 are agencies.8 consistent with approval of this proposal. Mercantile also states that it has no current plans to close Bank's main office. Mercantile expects Bank to continue to meet the credit needs of its community through programs that include loans for home improve- 10. Protestants object to the financial data provided in the appliment, farm property, farm equipment, and housing reha- cation, including a failure to evaluate "goodwill" and the reporting bilitation for low and moderate income families. More- of loan loss reserves instead of actual losses on loans. The Board over, the proposed acquisition of Bank would allow it to has carefully reviewed the financial information provided by Mercantile, in light of relevant reports of examinations assessing the augment its services with higher lending limits and inbank's financial resources. Based on all the facts of record, the creased access to Mercantile's network of automated Board concludes that the information provided by Mercantile is in teller machines in Maryland. Bank's branch closing pol- accordance with generally accepted accounting and regulatory acicy, which would remain in effect after consummation of counting principles and that the financial considerations in this the proposal, requires it to consider the impact of a proposal are consistent with approval. 11. Protestants allege that Bank's management has engaged in branch closing on the community. The FDIC, the priseveral improper actions. For example, Protestants believe that mary supervisor of Bank, reviewed the branch closing Bank's directors have increased their shareholdings without permitpolicy in Bank's most recent CRA examination, as of ting other shareholders the opportunity to purchase Bank stock. January 30, 1995, and concluded that it is consistent Mercantile responds that all but approximately 1260 shares acquired by the directors over the last 10 years were purchased with the FDIC's Policy Statement Concerning Branch through programs offered to all shareholders, including a 1985 Closing Policies.9 In light of all the facts of record, rights offering, a dividend reinvestment plan, and stock dividends. including comments by Protestants and the CRA records Mercantile also notes that some shareholders were unable to purof performance of Mercantile and Bank, the Board con- chase stock before 1990 because the stock was auctioned to the cludes that considerations relating to convenience and highest bidder under a sealed bid procedure. Protestants' comments also incorporate allegations of breach of needs, including performance under the CRA, are consisfiduciary duty and other improper activities by Bank's management tent with approval of this proposal. that were included in two lawsuits filed in state court. One suit was filed by Protestants and was dismissed by trial and appellate courts. The other lawsuit was filed by minority shareholders of Bank, whose third amended complaint was dismissed for failure to plead sufficient facts. In taking this action, the state court noted that this dispute essentially involved the price to be paid for Bank's shares, and that state law providing certain appraisal rights to objecting shareholders afforded the plaintiffs an exclusive remedy. Courts have determined that the Board does not have the authority to consider such matters as share pricing unless they are directly related to a factor specified in the BHC Act. Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749 (10th Cir. 1973). The Board also has reviewed other allegations by Protestants, including premature disclosure of proxy balloting, corrected reporting of abstaining proxy votes, and advertisements that appeared before regulatory approval of the transactions, and concludes that 8. The Statement of the Federal Financial Supervisory Agencies these allegations are not relevant to factors in the BHC Act. Based Regarding the Community Reinvestment Act provides that a CRA on all the facts of record, including reports of examination by examination is an important and often controlling factor in consid- Bank's primary federal supervisor that assess the bank's manageering an institution's CRA record and that these reports of examina- rial resources, the Board concludes that none of Protestants' allegation will be given great weight in the applications process. tions warrant denial of this application. 54 Federal Register 13,745 (1989). 12. Protestants contend that "Support Agreements" between 9. In the January 30, 1995, examination, FDIC examiners con- Mercantile and certain shareholders of Bank permit Mercantile to cluded that Bank's delineated service area, which has been ques- control more than 5 percent of the voting shares of Bank without tioned by Protestants in this application, meets the purpose of CRA. the Board's approval which is required by the BHC Act. The Board Protestants also assert that Mercantile intends to cease providing has carefully reviewed the restrictions in these agreements in light trust services identified by Mercantile in the application as benefit- of its rules on presumptions of control. See 12 C.F.R. 225.31(d)(1). ting Bank's community. Mercantile responds that it will continue to Based on all the facts of record, including the fact that Mercantile provide personal trust services in asset management and estate seeks through this application to obtain Board approval to acquire planning to the community through the trust division of Mercantile- all of Bank's shares, the Board does not believe that the execution Safe Deposit and Trust Company, Baltimore, Maryland, and that it of these agreements by Bank would warrant denial of this applicaonly intends to sell the trust department's corporate section, which tion. The Board also concludes that Protestants' other comments acts as a transfer agent for stocks and bonds for corporations and regarding these agreements, including possible breaches by some governmental units. shareholders, would not warrant denial. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1037 Based on the foregoing and all the facts of record, the Wells Fargo & Company Board has determined that the application should be, and San Francisco, California hereby is, approved.13 The Board's approval is expressly conditioned on Mercantile's compliance with all the HSBC Holdings pic commitments made in connection with this application. London, United Kingdom The commitments and conditions relied on by the Board in reaching this decision shall be deemed to be condi- HSBC Holdings BV tions imposed in writing by the Board in connection with Amsterdam, Netherlands its findings and decision, and, as such, may be enforced in proceedings under applicable law. Marine Midland Banks, Inc. The acquisition shall not be consummated before the Buffalo, New York fifteenth calendar day following the effective date of this order, or later than three months after the effective date Order Approving the Acquisition of a Bank of this order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Wells Fargo & Company, San Francisco, California Richmond, acting pursuant to delegated authority. ("Wells Fargo"); HSBC Holdings pic, London, United By order of the Board of Governors, effective Kingdom ("HSBC"); HSBC Holdings BV, Amsterdam, September 22, 1995. Netherlands ("HSBV"); and Marine Midland Banks, Inc., Buffalo, New York ("MMBI") (collectively, "Ap- Voting for this action: Vice Chairman Blinder and Governors plicants"), all bank holding companies within the mean- Kelley, Lindsey, Phillips, and Yellen. Absent and not voting: Chair- ing of the Bank Holding Company Act ("BHC Act"), man Greenspan. have applied under section 3 of the BHC Act (12 U.S.C. § 1842) to engage in a joint venture to establish and JENNIFER J. JOHNSON acquire 100 percent of the voting shares of a de novo Deputy Secretary of the Board bank, Wells Fargo HSBC Trade Bank, N.A., San Francisco, California ("Trade Bank").1 Notice of the applications, affording interested persons an opportunity to submit comments, has been published (60 Federal Register 34,257 and 39,394 (1995)). The time for filing comments has expired, and the Board has considered the applications and all comments received in light of the factors set forth in section 3 of the BHC Act. Wells Fargo is the second largest commercial banking organization in California, controlling deposits of approximately $40.6 billion, representing 17.2 percent of total deposits in commercial banking organizations in the state.2 MMBI is the fifth largest commercial banking 13. Protestants have requested that the Board hold a public organization in New York, controlling deposits of apmeeting or hearing on this application. Section 3(b) of the BHC Act proximately $12.9 billion, representing 5.6 percent of does not require the Board to hold a hearing on an application total deposits in commercial banking organizations in unless the appropriate supervisory authority for the bank to be the state.3 HSBC is the 18th largest commercial banking acquired makes a timely written recommendation of denial. No supervisory agency has recommended denial of the proposal. organization in the world, with consolidated assets Generally, under its Rules of Procedure, 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 1. Wells Fargo and HSBC would acquire, respectively, 60 peropportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and cent and 40 percent of the total equity of Trade Bank. Wells Fargo 262.25(d). Protestants in this case have had ample opportunity to would acquire 80 percent of the voting shares of Trade Bank, and submit their views, and have, in fact, submitted substantial written HSBC would acquire 20 percent. The rest of the equity interest in submissions that have been carefully considered in connection with Trade Bank would consist of a class of nonvoting, nonconvertible the Board's decision. Protestants' requests fail to demonstrate why preferred stock, all of which would be acquired by HSBC. HSBC's written submissions are inadequate in this case to present their interests would be held directly by MMBI, a wholly owned subsidviews or resolve the issues raised by their comments as required by iary of HSBV, which is a wholly owned subsidiary of HSBC. the Board's rules. 12 C.F.R. 262.3(e). For these reasons, and based HSBC has committed that Trade Bank would be a subsidiary for on all the facts of record, the Board has determined that a public purposes of the BHC Act and would be an affiliate of its other meeting or hearing is not necessary to clarify the factual record in subsidiary banks for purposes of sections 23A and 23B of the this application, or otherwise warranted in this case. Accordingly, Federal Reserve Act. Protestants' requests for a public hearing or meeting on these 2. State deposit data are as of June 30, 1994. applications are denied. 3. State deposit data are as of March 31, 1995. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1038 Federal Reserve Bulletin • November 1995 equivalent to approximately $315 billion,4 and it pro- Under California law, bank holding companies lovides a wide range of banking, financial, and related cated in other states are expressly authorized to acquire services worldwide through various subsidiaries and af- direct or indirect ownership of California banks if there filiated companies. HSBC's Hong Kong banking subsid- is substantial reciprocity between California law and the iaries, The Hongkong and Shanghai Banking Corpora- law of the home state of the acquiring out-of-state bank tion Limited and Hang Seng Bank Limited, maintain holding company.7 The Board previously has determined branches in Los Angeles and San Francisco, California; that a bank holding company with New York as its home Chicago, Illinois; New York, New York; Portland, Ore- state is authorized to acquire a California bank.8 In light gon; and Seattle, Washington; an agency in Houston, of the foregoing, the Board has determined that approval Texas; and representative offices in Newport Beach and of this proposal is not prohibited by the Douglas Amend- Alhambra, California; and Dallas, Texas. An English ment. banking subsidiary of HSBC, Midland Bank pic, London, United Kingdom, maintains a branch in New York, Competitive Considerations New York, and another banking subsidiary, Equator Bank Limited, Nassau, Bahamas, maintains representa- The Board has carefully considered the effects of this tive offices in Glastonbury, Connecticut, and Washing- proposal on competition in the relevant banking markets. ton, D.C. Both Wells Fargo and HSBC are large, independent Trade Bank would be chartered as a full-service na- organizations that would continue to compete in a varitional bank. Initially, however, it would engage only in ety of banking and nonbanking activities, and neither international trade finance, including receivables financ- their proposed investments in Trade Bank nor any agreeing and other extensions of credit, documentary payment ment between them restricts their other activities.9 In and collection services, and letter of credit processing. addition, Applicants control a relatively small percent- Wells Fargo, through its wholly owned subsidiary bank, age of the market for the lending services that Trade Wells Fargo Bank, N.A., San Francisco, California Bank would provide, and numerous competitors would ("Wells Fargo Bank"), would transfer assets to Trade remain in the market for these services. After consider- Bank, consisting primarily of loans secured by trade ing these and all of the other facts of record, the Board receivables and also including office equipment, records, concludes that consummation of this proposal is not and contracts. HSBC also would transfer loans secured likely to result in significantly adverse effects on compeby trade receivables to Trade Bank from the Los Ange- tition or the concentration of banking resources in any les and San Francisco branches of its Hong Kong bank- relevant banking market. ing subsidiaries, after which these branches would be closed, and would offer customer referrals from its sub- Supervisory Considerations sidiaries. Trade Bank would establish its main office in San Francisco and a branch in Los Angeles and one in Under section 3 of the BHC Act, as amended by the El Monte, California. Foreign Bank Supervision Enhancement Act of 1991,10 Douglas Amendment Analysis section 3(c) of the International Banking Act of 1978 (12 U.S.C. Section 3(d) of the BHC Act, the Douglas Amendment, § 3103(c)). 7. Cal. Fin. Code § 3753 (West 1995). On September 6, 1995, prohibits the Board from approving an application by a the California legislature adopted interstate banking legislation that bank holding company to acquire control of any bank is expected to be in effect as law at the time this proposal would be located outside the bank holding company's home state consummated. This proposal also appears to be consistent with unless such acquisition "is specifically authorized by the these new provisions, and the California Superintendent of Banks has confirmed this view. statute laws of the State in which bank is located, by 8. See Citicorp, 77 Federal Reserve Bulletin 325 (1991). See also language to that effect and not merely by implication."5 Cho Hung Bank, 81 Federal Reserve Bulletin 475 (1995). For purposes of the Douglas Amendment, HSBC's home 9. Wells Fargo and HSBC have made commitments to the Board state is New York.6 to ensure that the establishment of Trade Bank would not create any conflicts of interest or adversely influence Wells Fargo or Trade Bank in any creditor relationship. In particular, Wells Fargo and HSBC have committed that they and their subsidiaries will act 4. Asset data are as of December 31, 1994. at all times on an arm's-length basis in deciding whether to extend 5. 12 U.S.C. § 1842(d). credit to their co-venturer or to competitors of their co-venturer, 6. A bank holding company's home state is that state in which and that they and their banking subsidiaries (other than Trade the operation of the bank holding company's subsidiary banks were Bank) will not refuse to extend credit to a potential borrower solely principally conducted on July 1, 1966, or the date on which the on the basis that such a borrower could be a competitor of Trade company became a bank holding company, whichever is later. In Bank. addition, HSBC has elected New York as its home state under 10. Pub. L. No. 102-242, § 201 et seq., 105 Stat. 2286 (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1039 the Board may not approve any application by a com- available to the Board. In light of these commitments pany that involves a foreign bank unless the bank is and other facts of record,14 the Board has concluded that "subject to comprehensive supervision or regulation on HSBC has provided adequate assurances of access to a consolidated basis by the appropriate authorities in the any appropriate information the Board may request. For bank's home country."11 HSBC is the parent company these reasons, and based on all the facts of record, the for various banking and nonbanking companies ("HSBC Board concludes that the supervisory factors it is re- Group"), including subsidiary banks located in the quired to consider under section 3 of the BHC Act are United Kingdom and elsewhere. The Bank of England is consistent with approval. the consolidated supervisor for the HSBC Group. The Board has previously determined in connection Convenience and Needs Considerations with applications under the International Banking Act (12 U.S.C. § 3101 et seq.) ("IBA") that particular In acting on applications to acquire a depository institu- United Kingdom banks were subject to comprehensive, tion, the Board must consider the convenience and needs consolidated supervision.12 Although HSBC itself is not of the communities to be served, and take into account an authorized institution in the United Kingdom, HSBC the records of the relevant depository institutions under and the HSBC Group are supervised on substantially the the Community Reinvestment Act (12 U.S.C. § 2901 same terms and conditions as these United Kingdom et seq.) ("CRA"). The CRA requires the federal finanbanks.13 Based on all the facts of record, the Board has cial supervisory agencies to encourage financial institudetermined that the requirements of section 3(c)(3)(B) of tions to help meet the credit needs of the local communithe BHC Act regarding comprehensive, consolidated ties in which they operate, consistent with their safe and supervision are met in this case. sound operation. To accomplish this end, the CRA re- In addition, HSBC has committed that, to the extent quires the appropriate federal supervisory authority to not prohibited by applicable law, it will make available "assess the institution's record of meeting the credit to the Board such information on the operations of needs of its entire community, including low- and HSBC and any of its affiliates that the Board deems moderate-income neighborhoods, consistent with the necessary to determine and enforce compliance with the safe and sound operation of such institutions," and to BHC Act, the IBA, and other applicable federal law. take that record into account in its evaluation of these HSBC also has committed to cooperate with the Board applications.15 to obtain any waivers or exemptions that may be neces- The Board has received comments from the San Fransary in order to enable HSBC to make any information cisco Black Chamber of Commerce ("Protestant"), criticizing the record of Wells Fargo Bank in making home mortgage loans to African Americans, investing in orga- 11.12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the nizations that promote community development in the Board determines whether a foreign bank is subject to consolidated African-American community, and closing branches that home country supervision under the standards set forth in Regula- serve the African-American community. Protestant also tion K. 12 C.F.R. 225.13(b)(5). Regulation K provides that a asserts that Wells Fargo makes insufficient elforts to foreign bank may be considered to be subject to consolidated supervision if the Board determines that the bank is supervised or encourage African Americans to apply for loans and to regulated in such a manner that its home country supervisor re- support the needs of the African-American community. ceives sufficient information on the worldwide operations of the The Board has carefully reviewed the CRA perforforeign bank, including the relationship of the bank to its affiliates, mance record of Wells Fargo Bank, Protestant's comto assess the foreign bank's overall financial condition and compliments, and all other relevant facts of record in light of ance with law and regulation. 12 C.F.R. 211.24(C)(l)(ii). 12. West Merchant Bank, 81 Federal Reserve Bulletin 519 the CRA, the Board's regulations, and the Statement of (1995); Royal Bank of Scotland Group pic, 79 Federal Reserve the Federal Financial Supervisory Agencies Regarding Bulletin 1060 (1993); Singer & Friedlander, Ltd., 79 Federal the Community Reinvestment Act ("Agency CRA State- Reserve Bulletin 809 (1993); Coutts & Co., AG, 79 Federal Re- ment").16 serve Bulletin 636 (1993). The Board has previously determined that The Hongkong and Shanghai Banking Corporation Limited, a member of the HSBC Group, is subject to comprehensive, consolidated supervision under section 10(a) of the IBA. The Hongkong and Shanghai Banking Corporation Limited, 81 Federal Reserve Bulletin 902 (1995). 13. The HSBC Group also is subject to regulation by other 14. The Board notes that it previously has reviewed relevant regulators in the United Kingdom, such as the Securities and provisions of confidentiality, secrecy, and other laws in the jurisdic- Futures Authority, the Investment Management Regulatory Organi- tions in which HSBC has material operations. See The Hongkong zation, the Personal Investment Authority, and the Department of and Shanghai Banking Corporation, Limited, 81 Federal Reserve Trade and Industry. These regulators and the Bank of England Bulletin 902 (1995). exchange supervisory information as necessary to supervise the 15. 12 U.S.C. § 2903. operations of the group. 16. 54 Federal Register 13,742 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1040 Federal Reserve Bulletin • November 1995 Record of CRA Performance increase. In San Francisco, home mortgage loan applications from African Americans increased from 41 in 1993 A. Evaluation of CRA Performance to 61 in 1994, while overall home mortgage loan applications decreased from 940 to 765. For both years, the The Agency CRA Statement provides that a CRA exam- percentage of loan applications received by Wells Fargo ination is an important and often controlling factor in the Bank from African Americans substantially exceeded consideration of an institution's CRA record and that the percentage of loan applications received from Afrireports of these examinations will be given great weight can Americans for banks in San Francisco in the aggrein the applications process.17 Wells Fargo Bank received gate. In addition, the disparity between the denial rates an "outstanding" rating in its most recent examination for African Americans and non-minority applicants fell for CRA performance from the Office of the Comptroller during this period and were consistently lower than the of the Currency in April 1994 ("1994 Examination").18 disparity for banks in San Francisco in the aggregate. Mortgage applications from residents of low- and B. HMDA and Lending Activities moderate-income census tracts also increased as a percentage of all mortgage applications during this period. The Board has carefully reviewed 1993 and 1994 Home Wells Fargo Bank provides substantial assistance in Mortgage Disclosure Act ("HMDA") data filed by Wells meeting the housing-related credit needs of its communi- Fargo Bank in light of Protestant's allegations that the ties through construction financing and permanent finumber of home mortgage loan applications received nancing for commercial and non-profit developers. Since from and home mortgage loans granted to African Amer- 1990, the bank has provided $709.5 million for the icans was insufficient for a bank of its size. Wells Fargo construction of 212,000 affordable housing units. During Bank's lending business has focused on commercial real 1994, the bank provided $146.8 million for the construcestate and corporate lending. Moreover, the Board previ- tion of 1,997 affordable housing units throughout the ously has noted that HMDA data alone provide an state, including $8.4 million for two projects in incomplete measure of an institution's lending in its San Francisco that created 60 housing units. Examples community, and that these data have limitations that of individual projects funded in San Francisco since make the data an inadequate basis, absent other informa- 1990 include 201 Turk Street, a project of the Chinese tion, for conclusively determining whether an institution Community Housing Corporation to build 175 rental has engaged in illegal discrimination in making lending units, a childcare center, and retail space; 480 Valencia decisions. Street, a project of the Mission Housing Development The 1994 Examination did not find any practices that Corporation to build 58 units that are affordable by were intended to discourage credit applications and households earning less than 50 percent of San Franfound, in fact, that Wells Fargo solicited applications cisco's median household income; and Market Heights from all segments of the community, including low- and Apartments, a project of the Bernal Heights Community moderate-income areas. During 1991 and 1992, Wells Foundation to build 92 units of affordable housing. State- Fargo Bank reduced its overall lending and its home wide, Wells Fargo Bank was active in the creation of the mortgage lending, in particular, in response to weak California Community Reinvestment Corporation economic conditions in California. Subsequently, how- ("CCRC"), a consortium of 58 banks that provides a ever, it has taken steps to increase its home mortgage loan pool of $221 million for long-term financing of lending to low- and moderate-income borrowers and to affordable housing projects, and is the second largest African Americans and other minority applicants. participant in the pool, with a commitment of more than From 1993 to 1994, home purchase mortgage loan $30 million. Since 1989, CCRC has provided permanent applications received from African Americans in the financing for more than 6,000 affordable housing units. nine major MS As the bank serves increased from 160 to 881, and loans approved for members of this group increased from 61 to 445. During this period, aggregate C. Other Lending Programs home purchase, refinance, and improvement mortgage loan applications from African Americans in these MS As increased from 1,194 to 1,850, a 66 percent As noted above, Wells Fargo is primarily a commercial lender and has actively provided credit for small businesses and farms throughout the state. Wells Fargo Bank 17. Id. at 13,742. is the largest Small Business Administration section 504 18. MMBI's subsidiary bank, Marine Midland Bank, Buffalo, lender in California, and, in 1993, it had approximately New York, received a "satisfactory" rating in its most recent examination for CRA performance from the Federal Reserve Bank $43 million in loans outstanding under this program. The of New York in January 1994. bank makes loans to small businesses and farms in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1041 amounts as small as $5,000.19 Moreover, despite a de- moderate-income applicants. During 1994, the bank crease in overall commercial lending by the bank in the made 5,672 LIFT loans totalling $22.3 million. early 1990s, the 1994 Examination found that loans to businesses in low- and moderate-income census tracts D. Other Aspects of CRA Performance increased during this period. In the summer of 1993, Wells Fargo Bank also committed to make $2 billion of new small business loans by The 1994 Examination found that Wells Fargo Bank year-end 1994, including $260 million of small business engages in extensive efforts to ascertain the credit needs loans in San Francisco. The bank in fact extended or of the communities its serves and uses the information it entered into commitments for $2.7 billion of new loans gathers to develop new products or modify existing and lines of credit to small businesses during this period, products to serve these communities. The bank's ascerincluding $262 million of new loans and lines of credit tainment efforts are actively managed by its Community to small businesses in San Francisco. During 1994, the Development Department, which has substantial conbank extended 98 new loans and lines of credit for a total tacts with numerous government officials, affordable of $2.5 million to small businesses located in the West- housing developers, low-income consumers and nonern Addition neighborhood. Wells Fargo Bank also was profit agencies, and other minority and consumer groups. a sponsor of the California Capital Access Program, and Some of the bank's advertising for its affordable housing was the first bank to extend a business loan under the programs is prepared in five languages, and the bank program, which encourages banks to lend to small busi- maintains a Spanish-language mortgage hotline. Wells nesses that do not qualify for conventional financing by Fargo Bank markets its small business products through making public funds available as a form of loan insur- newspaper and radio advertising, direct mail, loan officer ance. By year-end 1994, the bank had made 474 loans calls, extensive contacts with government agencies, and for $68.3 million to small businesses under this program. participation in and sponsorship of small business con- Wells Fargo Bank also developed a Minority Business ferences. Loan Outreach Program during 1994, which provides flexible underwriting criteria for loans to firms majority- E. Branch Closings owned by women, disabled people, and members of minority groups. Wells Fargo Bank also makes equity investments in projects sponsored by and provides capi- In the 1994 Examination, the OCC found that Wells tal support to the operations of non-profit corporations Fargo Bank's record of opening and closing branches committed to economic redevelopment within the com- had not adversely affected access to the bank's products munities the bank serves, and is an active direct lender to and services throughout its delineated community. In private businesses that further this goal. response to Protestant's comments concerning the clos- In April 1993, Wells Fargo Bank publicly committed ing of the bank's branch in the Western Addition, Wells to make over $5 billion in loans over the next ten years Fargo has stated that the facility remains open as a through its Community and Economic Development "branch center," which continues to offer all customer Loan Program. As of June 1995, the bank reports that it retail services other than coin and currency handling and has extended credit or entered into loan commitments safe deposit facilities. In addition, Wells Fargo Bank for more than $3.6 billion toward this goal. added night depository facilities at the branch center in The 1994 Examination found that Wells Fargo Bank's response to customer requests. Wells Fargo also has consumer lending in low- and moderate-income census indicated that it continues to operate three branches tracts within the nine major MSAs the bank serves located within a half mile of the Western Addition. increased in 1993 over the prior two years, and that it was distributed within all income ranges. In the greater F. Conclusion San Francisco Bay area, the 1994 Examination found that a majority of Wells Fargo Bank's unsecured consumer loans were granted to residents of low- and The Board has carefully considered all the facts of moderate-income census tracts. The bank also offers record, including Protestant's comments, in reviewing Low Income Finance Terms ("LIFT") loans, which use the CRA record of performance of Wells Fargo Bank. underwriting criteria designed to accommodate low- and Based on a review of the entire record, including the information provided by Protestant and Wells Fargo and relevant reports of examination, the Board concludes that convenience and needs considerations, including 19. For these loans, Wells Fargo Bank focusses on businesses Wells Fargo Bank's record of CRA performance, are with annual revenues of $5 million or less and farms with annual revenues of $1 million or less. consistent with approval of these applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1042 Federal Reserve Bulletin • November 1995 Other Considerations effective date of this order, or later than three months after the effective date of this order, and Trade Bank The financial and managerial resources20 and future shall be open for business not later than six months after prospects of Applicants, Trade Bank, and the other sub- the effective date of this order, unless either such period sidiary banks of Applicants, and the other supervisory is extended for good cause by the Board or by either the factors that the Board must consider under section 3 of Federal Reserve Bank of New York or San Francisco, the BHC Act, are consistent with approval of this pro- acting pursuant to delegated authority. posal.21 By order of the Board of Governors, effective Sep- Based on the foregoing and all other facts of record, tember 18, 1995. the Board has determined that the applications should be, and hereby are, approved. The Board's approval is Voting for this action: Chairman Greenspan and Governors expressly conditioned on Applicants's compliance with Lindsey, Phillips, and Yellen. Absent and not voting: Vice Chairman Blinder and Governor Kelley. all the commitments made in connection with these applications, and on the receipt by Applicants and Trade JENNIFER J. JOHNSON Bank of all necessary approvals from state and federal Deputy Secretary of the Board regulators. The commitments and conditions relied on by the Board in reaching this decision shall be deemed to Orders Issued Under Section 4 of the Bank be conditions imposed in writing by the Board in con- Holding Company Act nection with its findings and decision, and, as such, may be enforced in proceedings under applicable law. First Union Corporation The establishment of Trade Bank shall not be consum- Charlotte, North Carolina mated before the fifteenth calendar day following the NationsBank Corporation Charlotte, North Carolina 20. Protestant also alleges that Wells Fargo does not have a purchasing program to support minority vendors. In response, Wells Fargo has provided the Board with information concerning Southern National Corporation its Minority/Women/Disabled-Owned Business Enterprise Procure- Winston-Salem, North Carolina ment Program, which covers all products or services used by Wells Fargo Bank. Any business the majority of which is owned by Wachovia Corporation women, disabled people, or members of a minority group is eligible for consideration under this program. In early 1995, Wells Fargo Winston-Salem, North Carolina mailed questionnaires to approximately 21,000 vendors asking them to identify themselves if they were eligible to participate, and Order Approving Notices to Provide Education Wells Fargo has received responses from more than 20 percent of Financing Advisory Services those surveyed. While the Board fully supports programs designed to stimulate and create economic opportunities for all members of society, the Board believes that alleged deficiencies in an organiza- First Union Corporation, Charlotte, North Carolina; Nation's purchasing program are beyond the scope of the CRA or the tionsBank Corporation, Charlotte, North Carolina; BHC Act. Southern National Corporation, Winston-Salem, North 21. Protestant has requested that the Board hold a public meeting Carolina; and Wachovia Corporation, Winston-Salem, or hearing on these applications. Section 3(b) of the BHC Act does not require the Board to hold a public hearing or meeting on an North Carolina (collectively, "Notificants"), bank holdapplication unless the appropriate supervisory authority for the ing companies within the meaning of the Bank Holding bank to be acquired makes a timely written recommendation of Company Act ("BHC Act") have given notice pursuant denial of the proposal. Generally, under its rules, the Board may, in to section 4(c)(8) of the BHC Act (12 U.S.C. its discretion, hold a public hearing or meeting on an application to clarify factual issues related to the application and to provide an § 1843(c)(8)) and section 225.23 of the Board's Regulaopportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and tion Y (12 C.F.R. 225.23), of their intention to acquire 262.25(d). In the Board's view, all parties have had ample opportu- more than 5 percent each of Education Financing Sernity to submit their comments, including the opportunity to supplevices, LLC, Winston-Salem, North Carolina ("Compament their comments after the close of the comment period, and ny").1 Notificants propose to provide education financ- Protestant has submitted written comments that have been considered by the Board. Protestant has failed to demonstrate why such submissions are inadequate in this case to present its views or resolve the issues raised by its comments as required by the 1. Notificants would own the following interests in Company: Board's rules. 12 C.F.R. 262.3(e). For these reasons, and based on First Union (approximately 15 percent), NationsBank (approxiall the facts of record, the Board has determined that a public mately 18 percent), Southern National (approximately 13 percent), meeting or hearing is not necessary to clarify the factual record in and Wachovia (approximately 17 percent). The remaining ownerthis application, or otherwise warranted in this case. Accordingly, ship interests in Company are being offered to approximately Protestant's request for a public hearing or meeting on these 125 other banks and savings institutions in North Carolina, whose applications is denied. individual ownership interests in Company would not exceed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1043 ing advisory services through Company that would college education, the North Carolina Authorities would enable state governments to assist parents in financing make loans to the parents, repayable after the child the higher education of their children. completed college, using underwriting standards estab- In particular, Company would: lished by NCSEAA.4 (1) Develop and manage an educational savings and Company proposes to assist the North Carolina Aulending program on behalf of the state, thorities in the development and management of the (2) Design and provide necessary computer software College Vision Fund. As part of developing the profor the program, gram, Company would assist in formulating and defining (3) Provide marketing and program materials, and its overall scope; provide research necessary to begin (4) Train state personnel to implement the program. operations; design the program's operations; and organize the program in cooperation with all interested par- Notificants propose initially to provide these services to ties. Company's responsibilities would include coordi- North Carolina, and thereafter to other state govern- nating participation among the North Carolina ments nationwide. Authorities and other interested parties; coordinating key Notice of this proposal, affording interested persons an functions of the College Vision Fund program such as opportunity to submit comments, has been published (60 marketing, public relations, training, software, invest- Federal Register 42,568 (1995)). The time for filing ment, lending, legal documentation, and financial recordcomments has expired, and the Board has considered keeping; and ongoing evaluation of the program. In this proposal and all comments received in light of the addition, Company would design, install, and maintain computer software necessary to implement the College factors set forth in section 4(c)(8) of the BHC Act. Vision Fund program. Company's compensation would Notificants are large commercial banking organizabe based on application fees received by NCSEAA and tions headquartered in North Carolina. They engage the amount of investment and loan balances held by the directly and through subsidiaries in a broad range of program. banking and permissible nonbanking activities in the United States.2 Closely Related to Banking Analysis Proposed Activities Section 4(c)(8) of the BHC Act provides that a bank Company proposes to provide education financing advi- holding company may, with Board approval, engage in sory services to state governments. For example, Com- any activity that the Board determines to be "so closely pany currently is negotiating with the State of North related to banking or managing or controlling banks as Carolina to establish the "College Vision Fund" and to be a proper incident thereto." 12 U.S.C. § 1843(c)(8). provide certain services to the North Carolina State All the proposed services are integrally related to Education Assistance Authority ("NCSEAA"), the advising and administering student loan and college North Carolina State Treasurer's Office ("Treasurer"), savings programs. Banks offering their own student loan and the College Foundation, Inc. ("Foundation") (col- and college savings programs engage in many of the lectively, "North Carolina Authorities"). It is proposed proposed activities and are uniquely suited to advise and that this program would be sponsored and administered assist other potential providers, including state governby North Carolina and would help parents finance the ments, in structuring and implementing student loan and higher education of their children through a combined college savings programs.5 The Board previously has savings and lending program. Under the program, par- concluded that bank holding companies may provide ents would deposit funds in a specified savings account similar advisory and support services to state authorities managed by NCSEAA before a child entered college to that are engaged in making student loans.6 Accordingly, pay for the anticipated cost of the child's college education.3 If savings did not cover the full cost of a child's 4. The Foundation would approve loans, service accounts, and market the College Vision Fund Program to North Carolina fami- 5 percent. Each Notificant has committed that Company will be lies. The loans initially would be funded from the investments/ treated as a subsidiary within the meaning of the BHC Act savings contributed by, and held on behalf of, the parents who (12 U.S.C. § 1841(d)). participated in the College Vision Fund program, and tax-free 2. Asset and deposit information for each of the Notificants is bonds issued by the State of North Carolina. In the future, North contained in the Appendix. Carolina might seek additional funding from members of Company 3. NCSEAA would place deposited funds in an investment trust (and other financial institutions) but such funding would be indefund managed by the Treasurer and maintain the accounting for pendent of any obligations between Company and the state. individual accounts based on each family's contributions, earnings, 5. See, e.g., 12 C.F.R. 225.25(b)(1), (3), and (7). tuition, and other educational expenses. The Treasurer would estab- 6. See Wachovia Corporation, 71 Federal Reserve Bulletin 725 lish investment guidelines and invest the deposited funds. (1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1044 Federal Reserve Bulletin • November 1995 based on all the facts of record, the Board concludes that These activities shall not be commenced later than the proposed activities are closely related to banking three months after the effective date of this order, unless under section 4(c)(8) of the BHC Act. such period is extended for good cause by the Board or by the Federal Reserve Bank of Richmond, pursuant to Proper Incident to Banking Analysis delegated authority. By order of the Board of Governors, effective Sep- In determining whether an activity is a proper incident to tember 25, 1995. banking, the Board must consider whether the activity "can reasonably be expected to produce benefits to the Voting for this action: Chairman Greenspan, Vice Chairman public, such as greater convenience, increased competi- Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen. tion, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, WILLIAM W. WILES Secretary of the Board decreased or unfair competition, conflicts of interests, or Appendix unsound banking practices."7 The Board believes that Notificants' expertise in designing and implementing education financing programs, combined with the sup- Asset and Deposit Data as of March 31, 1995 port of Notificants and the North Carolina banking community, would significantly assist the North Carolina First Union Corporation, with $77.9 billion in total con- Authorities in making educational financing more readily solidated assets, is the ninth largest commercial banking available. Moreover, there is no evidence in the record to organization in the United States, controlling $5.6 billion indicate that the proposed activities would lead to any in deposits. First Union Corporation operates subsidiary undue concentration of resources, unsound banking pracbanks in North Carolina, Florida, Georgia, Virginia, tices, or other adverse effects. Notificants intend to con- South Carolina, Tennessee, Maryland and the District of tinue to provide college savings programs and student Columbia. loan programs independent of the College Vision Fund, NationsBank Corporation, with $183.9 billion in total and NCSEAA may initiate other college financing proconsolidated assets, is the fourth largest commercial grams without Notificants. Based on these and all the banking organization in the United States, controlling facts of record, the Board concludes that the proposed $100.7 billion in deposits. NationsBank Corporation opactivities would not be likely to result in significantly erates subsidiary banks in North Carolina, Texas, Viradverse effects that would outweigh the public benefits. ginia, Florida, Georgia, Tennessee, Delaware, Kentucky, The financial and managerial resources of the Notificants and the District of Columbia. and Company also are consistent with approval. Southern National Corporation, with $19.9 billion in Based on the foregoing and all the facts of record, the total consolidated assets, is the 38th largest commercial Board has determined that the notice should be, and banking organization in the United States, controlling hereby is, approved. Approval of this proposal is specif- $14.5 billion in deposits. Southern National Corporation ically conditioned on compliance by Notificants with the operates subsidiary banks in North Carolina, South Carocommitments made in connection with this notice. The lina, and Virginia. Board's determination also is subject to all the terms and Wachovia Corporation, with $40.2 billion in total conconditions set forth in Regulation Y, including those in solidated assets, is the 23d largest commercial banking sections 225.7 and 225.23(b) of Regulation Y (12 C.F.R. organization in the United States, controlling $23.1 bil- 225.7 and 225.23(b)), and to the Board's authority to lion in deposits. Wachovia Corporation operates subsidrequire such modification or termination of the activities iary banks in North Carolina, Georgia, South Carolina, of a bank holding company or any of its subsidiaries as and Delaware. the Board finds necessary to ensure compliance with, and to prevent evasion of, the provisions of the BHC Act and the Board's regulations and orders issued thereunder. For purposes of this transaction, these commitments HSBC Holdings pic and conditions shall be deemed to be conditions imposed London, United Kingdom in writing by the Board in connection with its findings and decision, and, as such, may be enforced in proceed- HSBC Holdings BV ings under applicable law. Amsterdam, The Netherlands Marine Midland Banks, Inc. 7. 12 U.S.C. § 1843(c)(8). Buffalo, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1045 Marine Midland Bank meaning of section 4(c)(8) of the BHC Act. 12 C.F.R. Buffalo, New York 225.25(b)(9). The Board requires savings associations acquired by bank holding companies to conform their Order Approving the Acquisition of a Thrift Holding direct and indirect activities to those permissible for Company, the Merger of a Savings Association with bank holding companies under section 4 of the BHC Act and into a State Member Bank, and the Establishment and Regulation Y.3 of Branches Competitive Considerations HSBC Holdings pic, London, United Kingdom, HSBC Holdings BV, Amsterdam, The Netherlands, and Marine Marine Bank is the fifth largest depository institution in Midland Banks, Inc., Buffalo, New York (collectively, New York state, controlling $12.8 billion in deposits, "Marine"), bank holding companies within the meaning representing approximately 3.8 percent of the total deof the Bank Holding Company Act ("BHC Act"), have posits in depository institutions in the state.4 United requested Board approval under section 4(c)(8) of the Savings Bank is the 221st largest depository institution BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of in New York state, controlling deposits of $71.6 million, the Board's Regulation Y (12 C.F.R. 225.23) to acquire representing less than 1 percent of the total deposits in United Northern Bancorp, Inc,, Watertown, New York depository institutions in the state. Upon consummation ("United"), and United's wholly owned subsidiary, of this proposal, Marine Bank would remain the fifth United Northern Federal Savings Bank, Watertown, New largest depository institution in New York. York ("United Savings Bank"). Marine Midland Bank, Marine Bank and United Savings Bank compete di- Buffalo, New York ("Marine Bank"), a wholly owned rectly in the Watertown, New York, banking market subsidiary of Marine, has also applied under section ("Watertown banking market").5 Marine is the second 18(c) of the Federal Deposit Insurance Act (12 U.S.C. largest depository institution in the market, controlling § 1828(c)) ("Bank Merger Act") and section 5(d)(3) of $166.6 million in deposits, representing 17.7 percent of the Federal Deposit Insurance Act (12 U.S.C. the total deposits in depository institutions in the market § 1815(d)(3)) ("FDI Act"), as amended by the Federal ("market deposits").6 United Savings Bank is the ninth Deposit Insurance Corporation Improvement Act of largest depository institution in the market, controlling 1991 (Pub. L. No. 102-242, § 501, 105 Stat. 2236, $36.6 million in deposits, representing approximately 2388-2392 (1991)), for Board approval to merge United 3.9 percent of market deposits.7 Upon consummation of Savings Bank with and into Marine Bank;1 and incident this proposal, Marine Bank would control $239.8 million thereto, to establish branch offices pursuant to section 9 in deposits in the Watertown banking market, representof the Federal Reserve Act (12 U.S.C. § 321).2 ing approximately 24.5 percent of market deposits, and Notice of the proposal, affording interested persons an would remain the second largest depository institution in opportunity to submit comments, has been published (60 the market. The Herfindahl-Hirschman Index ("HHI") Federal Register 32,156 (1995)). As required by the Bank Merger Act, reports on the competitive effects of the merger were requested from the United States Attor- 3. United Savings Bank currently does not engage in any activiney General, the Office of Thrift Supervision ("OTS"), ties that are not permissible for bank holding companies under the and the Federal Deposit Insurance Corporation. The time BHC Act. 4. State deposit data are as of June 30, 1994. for filing comments has expired, and the Board has 5. The Watertown banking market consists of Jefferson County considered the applications and all the facts of record, and part of Lewis County, including the municipalities of Cooghan, including all comments received, in light of the factors Denmark, Diana, Harrisburg, Lowville, Martinsburg, Montague, set forth in the BHC Act, the Bank Merger Act, the FDI New Bremen, Pinkey and Watson, all in New York. 6. Market deposit data are as of June 30, 1994. In this context, Act, and the Federal Reserve Act. depository institutions include commercial banks, savings banks, The Board previously has determined by regulation and savings associations. that the operation of a savings association by a bank 7. Market share data before consummation are based on calculaholding company is closely related to banking within the tions in which the deposits of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See WM Bancorp, 76 Federal 1. Section 5(d)(3) of the FDI Act requires the Board, inter alia, to Reserve Bulletin 788 (1990); National City Corporation, 70 Fedfollow the procedures and consider the factors set forth in the Bank eral Reserve Bulletin 743 (1984). Because the deposits of the Merger Act. United Savings Bank branches will be transferred to a commercial 2. Marine Bank plans to acquire United Savings Bank's principal bank under this proposal, those deposits are included at 100 percent office at 418 Washington Street, Watertown, New York, and its in the calculation of pro forma market share. See Norwest Corporabranch office at South State Street, Lowville, New York, and tion, 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 establish branches at those locations. Federal Reserve Bulletin 669 (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1046 Federal Reserve Bulletin • November 1995 for the market would increase by 175 points to 1855.8 involvement in the community and lack of interaction This proposal would not exceed the Department of Jus- with community groups in Westchester County. The tice merger guidelines, and numerous competitors would Board notes that a similar protest was made by Protesremain in the market. Based on these and all the other tant less than a year ago in connection with Marine facts of record, the Board has concluded that consumma- Bank's proposal to acquire six retail branches from its tion of this proposal would not result in any significantly affiliate, The Hongkong and Shanghai Banking Corporaadverse effect on competition or the concentration of tion, Limited, Hong Kong.11 banking resources in the Watertown banking market or In considering the convenience and needs factor under any other relevant banking market. the Bank Merger Act, and related factors under other relevant statutes, the Board has carefully reviewed Ma- Convenience and Needs Considerations rine Bank's entire record of CRA performance, Protestants comments and Marine Bank's responses to those In acting on these applications and notices under the comments, and all other relevant facts of record, in light relevant banking statutes, the Board is required to con- of the CRA, the Board's regulations, and the Statement sider the convenience and needs of the communities to of the Federal Financial Supervisory Agencies Regardbe served and to take into account the records of the ing the Community Reinvestment Act ("Agency CRA relevant depository institutions under the Community Statement").12 Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agen- Record of CRA Performance cies to encourage financial institutions to help meet the credit needs of the local communities in which they A. Evaluation of CRA Performance operate, consistent with their safe and sound operation. To accomplish this end, the CRA requires the appropri- The Agency CRA Statement provides that a CRA examate federal supervisory authority to "assess the institu- ination is an important and often controlling factor in the tion's record of meeting the credit needs of its entire consideration of an institution's CRA record, and that community, including low- and moderate-income neigh- reports of these examinations will be given great weight borhoods, consistent with the safe and sound operation in the applications process.13 The Board notes that of such institution," and to take that record into account Marine Bank received a "satisfactory" rating from the in its evaluation of bank expansion proposals.9 Federal Reserve Bank of New York ("Reserve Bank") The Board has received comments on this proposal at its most recent examination for CRA performance from the Concerned Citizens of Westchester County conducted as of January 31, 1994 ("1994 Exam"). New York, White Plains, New York ("Protestant"), that United Savings Bank also received a "satisfactory" ratcriticize the CRA performance record of Marine Bank.10 ing from its primary supervisor, the OTS, at its most Specifically, Protestant alleges that data reported by Ma- recent examination for CRA performance conducted as rine Bank under the Home Mortgage Disclosure Act of April 30, 1993. ("HMDA") indicate that Marine Bank has a poor record of lending to minorities and in minority communities in B. HMDA Data and Lending Practices Westchester County. Protestant also claims that this deficiency in lending stems from Marine Bank's lack of In light of Protestant's allegations, the Board has carefully reviewed Marine Bank's 1993 and 1994 HMDA data for Westchester County.14 From 1993 to 1994, 8. Under the revised Department of Justice Merger Guidelines, Marine Bank experienced a general decline in the num- 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is more than 1800 is considered highly concentrated. The Justice Department has informed the Board that a bank 11. After a careful review of the Protestant's previous allegamerger or acquisition generally will not be challenged (in the tions, and Marine Bank's CRA record, Marine Bank's 1992 and absence of other factors indicating anticompetitive effects) unless 1993 HMDA data for Westchester County, and other related facts the post-merger HHI is at least 1800 and the merger increases the of record, the Board found that "the efforts of Marine Midland HHI by more than 200 points. The Justice Department has stated [Bank] to help meet the credit needs of all segments of its commuthat the higher than normal HHI thresholds for screening bank nities, including low- and moderate-income neighborhoods, as well mergers for anticompetitive effects implicitly recognize the compet- as all the other convenience and needs considerations, [were] itive effect of limited-purpose lenders and other non-depository consistent with approval" of Marine Bank's proposal. Marine financial entities. Midland Bank, 81 Federal Reserve Bulletin 56, 58 (1995). 9. 12 U.S.C. § 2903. 12. 54 Federal Register 13,742 (1989). 10. Protestant's comments were received after the close of the 13. Id. at 13,745. comment period. Under the Board's Rules of Procedure, the Board 14. The Board has reviewed the HMDA data for both Marine may, in its discretion, take into consideration comments received Bank and Marine Bank Mortgage Corporation, a wholly owned after the comment period has expired. 12 C.F.R. 262.3(e). subsidiary of Marine. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1047 ber of mortgage applications it received15 in Westchester loans and applications from low- and moderate-income County.16 Despite this general decline, the data indicate census tracts throughout the bank's delineated service that the number of loans made to African Americans areas. In 1993, Marine Bank made 2.74 loans in minority during this period in Westchester County increased census tract areas (areas with a 50 percent or greater 17.4 percent, while decreasing 5.5 percent for Hispanics minority population) for every 1000 owner-occupied and 50 percent for whites.17 The denial rate for African units located in the predominantly minority census tract Americans decreased from 30 percent in 1993 to areas of Westchester County, compared to 2.93 loans for 8.6 percent in 1994, while the denial rate for whites every 1000 owner-occupied units located in predomiincreased from 22 percent in 1993 to 27.8 percent in nantly nonminority census tract areas. The number of 1994. The denial rates for Hispanics also increased loans made per 1000 owner-occupied units declined in slightly from 7 percent in 1993 to 10.2 percent in 1994. 1994 in both predominantly minority and nonminority These data reflect disparities in denial and origination census tract areas. The ratio in predominantly minority rates by racial group.18 census tracts declined only slightly to 2.4, while the ratio The Board is concerned when an institution's record in predominantly nonminority areas declined to 1.6. indicates disparities in lending to minority applicants, In light of Protestant's current allegations, the Board and the Board believes all banks are obligated to ensure also reviewed Marine Bank's small business lending that their lending practices are based on criteria that record in neighborhoods with a 50 percent or greater assure not only safe and sound lending, but also equal minority population. Eighteen percent of the small busiaccess to credit by creditworthy applicants regardless of ness loans originated by Marine Bank in Westchester race. The Board recognizes, however, that HMDA data County in 1994, and 16 percent in 1993, were made in alone provide an incomplete measure of an institution's these predominantly minority areas. The data for the first lending in its community. The Board also recognizes that two quarters of 1995 indicate that 25 percent of the small HMDA data have limitations that make the data an business loans made by Marine Bank in the first six inadequate basis, absent other information, for conclud- months of 1995 have been made in predominantly ing that an institution has engaged in illegal discrimina- minority areas. In June 1995, Marine Bank signed an tion in lending. agreement with the Westchester Regional Community The 1994 Examination found that Marine Bank's Development Corporation to lend $200,000 annually to credit practices complied with the provisions of antidis- small businesses. Marine Bank also has funded a lowcrimination laws and regulations.19 The examination also cost loan under the New York State Economic Developnoted that Marine Bank used a second review program ment program. for all denied residential mortgage applications, in which underwriting supervisors reviewed the original under- C. Other Aspects of CRA Performance. writer's decision and must concur in order for an application to be denied. Marine Bank continues to ascertain the credit needs of The 1994 Examination did not find any practices that its communities and market its products in many of the were intended to discourage credit applications. Examin- ways found to be consistent with a satisfactory record of ers noted that Marine Bank solicited credit applications performance under the CRA in the Board's two most from all segments of the communities within its delin- recent approvals of Marine Bank's proposals,20 includeated service area, including low- and moderate-income ing the use of community development officers to stimuareas. In addition, examiners noted in the 1994 Examina- late mortgage business and other business opportunition that Marine Bank had a reasonable geographic dis- ties.21 In addition, Marine Bank is represented on the tribution of residential mortgage and home improvement review board of the Tri-City Development Corporation, an organization that administers a loan fund for businesses owned by women or minorities in the New Roch- 15. Marine Bank received 696 loan applications for mortgage elle, Mt. Vernon, and Yonkers communities. Marine products in 1993 and 400 in 1994. 16. According to 1990 census track data, Westchester County has Bank has represented that it will continue to market its a population of 874,866 residents which can be characterized as products and services through advertisements in daily 73 percent White, 13 percent African-American, and 10 percent newspapers, local weekly news and trade publications, Hispanic. and some journals and special audience publications that 17. Twenty-seven loans were made to African Americans and 11 were made to Hispanics in 1994. 18. Only partial data are available at this time for 1995. The Board will consider complete HMDA data for 1995 in future 20. See Marine Midland Bank, 81 Federal Reserve Bulletin 56 applications by Marine Bank to establish a depository facility. (1995) and Marine Midland Bank, 81 Federal Reserve Bulletin 739 19. Specifically, examiners noted that the loan terms, qualifying (1995). ratios and underwriting guidelines for residential mortgage loans 21. From January 1, 1995, through July 31, 1995, more than were reasonable throughout Marine Bank's delineated service area. 1000 calls were made by these officers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1048 Federal Reserve Bulletin • November 1995 focus on specific minority groups, including minority sider under the proper incident to banking standard of groups in Westchester County. Between March 1995 and section 4(c)(8) of the BHC Act is favorable, and consis- July 1995, representatives of the bank sponsored over 20 tent with approval of this proposal. seminars for residents and organizations in Westchester The Board also has considered the specific factors it County. must review under section 5(d)(3) of the FDI Act, and the record in this case shows that: D. Conclusion (1) The transaction will not result in the transfer of any federally insured depository institution's federal In reviewing the convenience and needs factor under the deposit insurance from one federal deposit insurance Bank Merger Act, and related factors under the CRA and fund to the other; other relevant bank statutes, the Board has carefully (2) Marine and Marine Bank currently meet, and upon considered the entire record, including Protestant's comconsummation of the proposed transaction will conments and Marine Bank's record of CRA performance. tinue to meet, all applicable capital standards; and In light of all facts of record, the Board believes that the (3) The proposed transaction would comply with the efforts of Marine Bank to help meet the credit needs of interstate banking provisions of the Bank Holding all segments of its communities, including low- and Company Act (12 U.S.C. § 1842(d)) if United Savmoderate-income neighborhoods, as well as all other ings Bank were a state bank that Marine was applying convenience and needs considerations, are consistent to acquire directly. See 12 U.S.C. § 1815(d)(3). with approval of this proposal. Based on the foregoing and all the other facts of Other Considerations record, the Board has determined that the notices and The Board also has concluded that the financial and applications should be, and hereby are, approved. The managerial resources and future prospects of Marine, Board's approval is specifically conditioned on compli- United, and their respective subsidiaries, are consistent ance by Marine and Marine Bank with all the commitwith approval of this proposal, as are the other supervi- ments made in connection with this proposal. The sory factors the Board must consider under the Bank Board's determination also is subject to all the condi- Merger Act and the FDI Act.22 The Board also has tions set forth in Regulation Y, including those in secconsidered the factors it is required to consider when tions 225.7 and 225.23(b) of Regulation Y, and to the reviewing applications to establish branches pursuant to Board's authority to require such modification or termisection 9 of the Federal Reserve Act (12 U.S.C. § 321 nation of the activities of a bank holding company or any et seq.), and has determined that those factors are consis- of its subsidiaries as the Board finds necessary to ensure tent with approval of the establishment of Marine Bank compliance with, and to prevent evasion of, the provibranches at the present sites of the United Savings Bank sions of the BHC Act and the Board's regulations and branch offices. In addition, the record does not indicate orders issued thereunder. Approval of the proposal is that consummation of this proposal is likely to result in further subject to Bancorp's obtaining any approvals any significantly adverse effects, such as undue concen- required under applicable federal or state laws. For purtration of resources, decreased or unfair competition, poses of this action, the commitments and conditions conflicts of interests, or unsound banking practices, that referred to herein shall be deemed to be conditions are not likely to be outweighed by the public benefits imposed in writing by the Board in connection with its reasonably to be expected to result from this proposal. findings and decision, and, as such, may be enforced in Marine Bank's merger with United Savings Bank would proceedings under applicable law. provide added convenience and services to United Sav- This proposal shall not be consummated before the ings Bank's customers because they would have access fifteenth calendar day following the effective date of this to Marine Bank's large branch network and a variety of order, or later than three months after the effective date services and programs not currently provided by United of this order, unless such period is extended for good Savings Bank. Accordingly, the Board has determined cause by the Board or by the Federal Reserve Bank of that the balance of public interest factors it must con- New York, acting pursuant to delegated authority. By order of the Board of Governors, effective September 11, 1995. 22. Protestant also alleges that Marine and Marine Bank do not Voting for this action: Vice Chairman Blinder, and Governors use the services of African-American businesses. Protestant has not Kelley, Lindsey, Phillips, and Yellen. Absent and not voting: Chairpresented any evidence to support this allegation. While the Board man Greenspan. fully supports programs designed to stimulate and create economic opportunities for all members of society, the Board believes that the alleged deficiencies in the organizations' third party contracting WILLIAM W. WILES matters are beyond the scope of the CRA or the BHC Act. Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1049 State Street Boston Corporation American Depository Receipts.3 In these capacities, Part- Boston, Massachusetts nership would provide stock option processing, recordkeeping and account maintenance, restricted securities Order Approving Notice to Engage in Nonbanking processing and recordkeeping, stock watch services, div- Activities idend reinvestment and employee stock purchase plan administration, annual meeting services, and reorganiza- State Street Boston Corporation, Boston, Massachusetts tion services.4 Partnership also would provide investor ("State Street"), a bank holding company within the communication services in its capacity as agent or admeaning of the Bank Holding Company Act ("BHC ministrator for a securities issuer or a stock purchase or Act"), has given notice pursuant to section 4(c)(8) of the option plan, which would include responding to oral or BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 written inquiries by current or potential shareholders.5 In of the Board's Regulation Y (12 C.F.R. 225.23) to addition, Partnership proposes to provide processing seracquire, through its existing joint venture subsidiary, vices for government allotment programs in which par- Boston Financial Data Services, Inc., Quincy, Massachu- ticipating government employees have a designated porsetts ("BFDS"), a controlling interest in BancBoston tion of their paychecks withheld by their employer and State Street Investor Services, L.P., Canton, Massachu- invested in employee-selected investment vehicles.6 setts ("Partnership"), a de novo joint venture with The Under section 225.25(b)(3) of Regulation Y, a bank First National Bank of Boston, N.A., Boston, Massachu- holding company may perform those functions or activisetts ("FNBB"),1 and thereby engage under the Board's ties that may be performed by a trust company (includ- Regulation Y in trust-related services pursuant to section ing activities of a fiduciary, agency, or custodial nature) 225.25(b)(3), in data processing activities in connection in the manner authorized by federal or state law, as long with these services, and in certain other data processing as the institution does not make loans or investments or activities pursuant to section 225.25(b)(7) and in accor- accept deposits.7 The Board previously has determined dance with section 225.123(e). Notice of this proposal, affording interested persons an opportunity to submit comments, has been published (59 3. For example, in providing shareholder services to corporations and securities issuers, Partnership would act as registrar, transfer Federal Register 47,176 and 43,800 (1995)). The time agent, paying agent, dividend disbursing agent, employee stock for filing comments has expired, and the Board has purchase plan agent or administrator, stock option administrator, considered the notice and all comments received in light rights agent, tender agent, reorganization agent, and proxy agent or of the factors set forth in section 4(c)(8) of the BHC Act. administrator. Partnership also might act as sub-agent or subadministrator for another organization serving in any such role. State Street, with total consolidated assets of approxi- When acting as sub-agent or sub-administrator, Partnership would mately $25.6 billion,2 operates one banking subsidiary, provide only those shareholder services that Partnership may pro- State Street Bank and Trust Company, Boston, Massa- vide directly. Partnership would not provide shareholder services to chusetts ("SSBTC"). Through 32 offices worldwide, open-end investment companies ("mutual funds") or unit invest- State Street also provides a broad range of financial asset ment trusts. 4. Annual meeting services would include the printing, mailing, services, such as corporate trusteeship, domestic and and processing of proxy cards and related materials for annual or global custody arrangements, and portfolio accounting. special meetings of shareholders, and serving as inspector of elections at shareholder meetings. In providing reorganization services, Proposed Trust-Related Services Partnership would effect share exchanges in mergers and acquisitions, remit payments to shareholders in corporate reorganizations, and issue shares in subscription offerings. Partnership proposes to act as agent or administrator in 5. For example, in its capacity as transfer agent or dividend providing certain shareholder services to corporations reinvestment plan agent, Partnership might distribute annual reand other securities issuers, including limited partner- ports, proxies, dividend reinvestment statements and other similar ships, closed-end investment companies, and issuers of information to persons who request such information. Partnership also might distribute such information in a scheduled or general mailing at the request of the securities issuer or plan. Partnership would not provide investment advice, marketing and advertisement services, or brokerage services to a securities issuer or plan for which Partnership acted as agent or administrator. 6. Funds would be deposited in savings accounts opened by Partnership in the name of the participating employee and invested in the vehicle selected by the employee. Partnership would not act 1. BFDS is equally owned by State Street and DST Systems, Inc., as government allotment agent for payroll deduction programs that a nonbanking organization. BFDS and FNBB each would own a offered as investment vehicles mutual funds that were advised by, 49.5 percent limited partnership interest in Partnership, and two or primarily sold through, State Street, FNBB, or any of their wholly owned subsidiaries of BFDS and FNBB would own a affiliates, without prior approval of the Board. 0.5 percent general partnership interest in Partnership. 7. Section 225.25(b)(3) also provides certain exceptions from the 2. Asset data are as of June 30, 1995. general limitation on deposit-taking, investment and lending activi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1050 Federal Reserve Bulletin • November 1995 that the provision of corporate agency services and act- Based on these and other facts of record, the Board ing as trustee, paying agent, stock transfer agent, divi- concludes that the proposed services are functions or dend disbursing agent and general transfer agent are activities that may be performed by a trust company in functions or activities that may be performed by bank the manner authorized by federal or state law, and, holding companies pursuant to, and subject to the limita- therefore, the provision of these services as proposed is tions contained in, section 225.23(b)(3) of Regula- permissible under section 225.25(b)(3) of the Board's tion Y.8 Regulation Y. The record also indicates that annual meeting services, reorganization services, and proxy solicitation services Proposed Data Processing Activities are among the activities that a trust company providing full-service, general transfer agency functions may pro- Partnership would engage in data processing activities in vide to securities issuers in connection with the trust connection with providing the proposed trust-related sercompany's traditional transfer agency functions. The vices.11 Partnership also proposes to engage in data Board notes that SSBTC, a Massachusetts-chartered processing activities independently for customers not bank and trust company, and FNBB, a national bank purchasing the proposed trust-related services. For exauthorized to exercise fiduciary powers, currently pro- ample, Partnership proposes to optically scan and convide shareholder services to securities issuers in connec- vert to an electronic database the customer signature tion with their agency and fiduciary functions, including cards or other banking-related data of financial instituannual meeting services, reorganization services and tions. In addition, Partnership proposes to provide claims stock watch services. processing and disbursement services in connection with Moreover, trust companies that serve as transfer or bankruptcy and class action judgments or settlements. paying agent for a securities issuer, or agent or adminis- The Board has concluded that the data processing trator for a dividend, purchase, or investment plan, gen- activities that Partnership proposes to conduct in connecerally provide investor communication services regard- tion with providing trust-related services are incidental ing the securities or plan for which the trust company to providing those services.12 In addition, the proposed acts in an agency capacity. In providing these investor optical scanning and data base preparation services for communication services, trust companies essentially per- financial institutions would involve the processing of form a ministerial role on behalf of the securities issuer financial, banking, or economic data within the meaning or plan, such as, for example, answering inquiries re- of Regulation Y.13 garding a securities transaction or the terms of a plan. In In conducting data processing activities in a bankaddition, trust companies currently provide processing ruptcy proceeding or class action lawsuit, Partnership services in connection with government allotment pro- would be retained to provide accounting, recordkeeping, grams and provide processing and administrative ser- and remittance services in connection with the distribuvices to similar types of employee benefit and profit tion of a judgment or settlement proceeds to the banksharing plans.9 The Board also notes that FNBB has rupt's creditors or class action plaintiffs.14 No services received approval to engage in these activities through would be provided by Partnership until after a final Partnership from the Office of the Comptroller of the judgment was rendered, or a final settlement of the Currency ("OCC"), its primary federal supervisor.10 action was proposed for ratification by the creditors or class action plaintiffs and a distribution of the settlement proceeds was expected by the court or defendant. These ties by a trust company. Stale Street has represented that Partnership will comply with the limitations contained in section 11. For example, Partnership would process proxies from share- 225.25(b)(3). In addition, Partnership proposes to establish a holders, create and update shareholder data bases, maintain aclimited-purpose, federally chartered trust company that would per- counts for dividend reinvestment and other stock purchase plans, form transfer agency services on behalf of Partnership. This trust process changes of address, and scan shareholder correspondence company subsidiary would be wholly owned by Partnership, would in connection with providing the proposed shareholder services. not be a "bank" within the meaning of section 2 of the BHC Act, 12. See 12 C.F.R. 225.21(a)(2). and would be authorized to engage in only those activities in which 13. See 12 C.F.R. 225.25(b)(7); BNCCORP, 81 Federal Reserve Partnership may engage directly. Bulletin 295 (1995). 8. See State Street Boston Corporation, 81 Federal Reserve 14. For example, Partnership would calculate the amount to be Bulletin 297 (1995); Bancorp Hawaii, Inc., 71 Federal Reserve remitted from a judgment or settlement to each creditor or class Bulletin 168 (1985). action plaintiff based on data provided by a third party, provide an 9. See, e.g., Bancorp Hawaii, Inc., 71 Federal Reserve Bulletin accounting of such payments to the court or defendant, and remit 168 (1985) (recordkeeping agent and administrator for qualified payments to creditors or plaintiffs entitled to such distributions. employee benefit pension and profit sharing plans). Partnership would not make a determination as to whether a credi- 10. See Letter from Ralph E. Sharpe, Deputy Comptroller, OCC, tor or plaintiff was entitled to participate in any judgment or to Robert M. Klivans, FNBB, September 15, 1995. settlement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1051 activities are functionally equivalent to the types of effects, such as undue concentration of resources, deaccounts receivables processing and remittance services creased or unfair competition, conflicts of interests, or that the Board previously has determined are permissible unsound banking practices." 12 U.S.C. § 1843(c)(8). for bank holding companies to provide to nonfinancial The Board believes that the performance of the proposed customers.15 State Street has committed that the Partner- activities by Partnership can reasonably be expected to ship will conduct its data processing and transmission produce benefits to the public such as increased effiactivities in accordance with the requirements set forth ciency and greater convenience. State Street also has in Regulation Y, including the limitation on the nature of made certain commitments previously relied on by the the data to be processed or furnished.16 Based on these Board to address potentially adverse competitive and and other facts of record, the Board concludes that the other effects that may be presented by joint venture proposed claims processing activities involve the pro- proposals. Based on these and other commitments, and cessing of financial, banking, or economic data consis- all the facts of record, the Board finds that the public tent with the requirements of section 225.25(b)(7) of benefits of Partnership's proposed activities outweigh Regulation Y.17 any adverse effects, and, therefore, that the activities are In order to approve this notice, the Board also must a proper incident to banking for purposes of section find that the performance of the proposed activities by 4(c)(8) of the BHC Act. Partnership "can reasonably be expected to produce Based on the foregoing and all the facts of record, benefits to the public . . . that outweigh possible adverse including State Street's commitments and representations, and subject to all the terms and conditions set forth in this order, the Board has determined that the notice should be, and hereby is, approved. The Board's deter- 15. See BNCCORP, 81 Federal Reserve Bulletin 295 (1995). In mination is subject to all the conditions set forth in some instances, Partnership may process data that are not financial but nevertheless are directly related to the payment of settlement Regulation Y, including those in sections 225.7 and proceeds. For example, Partnership would process and transmit 225.23(b)(3) and (b)(7) of Regulation Y (12 C.F.R. data to creditors and plaintiffs for the purpose of obtaining their 225.7 and 225.25(b)(3) and (b)(7)), and to the Board's consent to a proposed settlement. The Board previously has recogauthority to require modification or termination of the nized that processing non-financial data may be required in order to activities of a bank holding company or any of its perform permissible data processing activities. See Banc One Corporation, 80 Federal Reserve Bulletin 139 (1994) (permitting the subsidiaries as the Board finds necessary to assure comtransmission of limited medical data necessary to operate an elec- pliance with, and to prevent evasion of, the provisions of tronic medical payments network). Partnership has stated that the the BHC Act and the Board's regulations and orders non-financial data it proposes to transmit to creditors or plaintiffs issued thereunder. The Board's decision is specifically would include only the information required to obtain approval of the proposed settlement, and that Partnership would not otherwise conditioned on State Street's compliance with the comtransmit non-financial data in connection with these activities. For mitments and representations made in connection with the foregoing reasons, the Board believes that processing and this notice, including the commitments and conditions transmission by Partnership of data necessary to obtain the ratifica- discussed in this order. The commitments, representation of a bankruptcy or class action settlement are permissible. tions, and conditions relied on in reaching this decision 16. See 12 C.F.R. 225.25(b)(7). Regulation Y also requires that data processing services be provided pursuant to a written agree- shall be deemed to be conditions imposed in writing by ment and places certain limitations on the facilities and hardware the Board in connection with its findings and decision that may be provided with the data processing services. In particu- and may be enforced in proceedings under applicable lar, the facilities must be designed, marketed, and operated for the law. processing and transmission of financial, banking, or economic data; hardware must be provided only in conjunction with permissi- This transaction shall not be consummated later than ble software; and general purpose hardware must not constitute three months after the effective date of this order, unless more than 30 percent of the cost of any packaged offering. See id. such period is extended for good cause by the Board or 17. Partnership also proposes to use its excess data processing by the Federal Reserve Bank of Boston, acting pursuant capacity to process data that are not financial, banking, or economic to delegated authority. in nature. Partnership has made several commitments to ensure that these activities would be conducted in accordance with the Board's By order of the Board of Governors, effective Seppolicy statement regarding the provision of excess data processing tember 25, 1995. capacity. See 12 C.F.R. 225.123(e). State Street has committed that revenues from processing data that are not financial, banking, or Voting for this action: Chairman Greenspan, Vice Chairman economic in nature, or that is not incidental to the provision of Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen. Partnership's trust-related services, will not exceed 5 percent of Partnership's total revenues from providing permissible data processing and trust-related services. State Street also has committed that Partnership will process non-financial customer data (such as customer responses to a new product survey) only as an accommodation to Partnership's shareholder services clients, and that Part- WILLIAM W. WILES nership will not separately market these data processing services. Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1052 Federal Reserve Bulletin • November 1995 Orders Issued Under Sections 3 and 4 of the homa Banking Code prohibits a multi-bank holding Bank Holding Company Act company from acquiring a bank or a bank holding company in Oklahoma if, after the acquisition, the acquiror BOK Financial Corporation would control more than 11 percent of the aggregate Tulsa, Oklahoma deposits of all federally insured financial institutions in Oklahoma. Order Approving Acquisition of Shares of a Bank The Board has carefully reviewed Liberty's comments Holding Company and BOK's proposal in light of Oklahoma law. Oklahoma law prohibits a multi-bank holding company from BOK Financial Corporation, Tulsa, Oklahoma acquiring "direct or indirect ownership or control of any ("BOK"), a bank holding company within the meaning financial institution insured by [a federal banking, thrift of the Bank Holding Company Act ("BHC Act"), has or credit union agency] and located in [Oklahoma] if applied under section 3 of the BHC Act (12 U.S.C. such acquisition results in the multi-bank holding com- § 1842) to acquire up to 9.9 percent of the shares of pany having direct or indirect ownership or control of Liberty Bancorp, Inc., Oklahoma City, Oklahoma ("Lib- banks located in this state, the total deposits of which at erty"), and thereby indirectly acquire an investment in the time of such acquisition exceed eleven percent (11%) Liberty's subsidiary banks, Liberty Bank and Trust of the aggregate deposits of all financial institutions Company of Oklahoma City, N.A., Oklahoma City, insured by [a federal banking, thrift or credit union Oklahoma, and Liberty Bank and Trust Company of agency] as determined by the Commissioner on the basis Tulsa, N.A., Tulsa, Oklahoma. BOK also has given of the most recent reports of such institution to their notice under section 4(c)(8) of the BHC Act to acquire supervisory authorities. ... "3 If BOK were deemed to indirectly interests in the nonbanking subsidiaries of control Liberty, this limitation would be exceeded. Liberty.1 Direct or indirect ownership or control of an institu- Notice of this proposal, affording interested persons an tion for purposes of Oklahoma law is defined in the same opportunity to submit comments, has been published (60 terms as in the BHC Act. In particular, a company would Federal Register 32,322, 40,585 (1995)). The time for control another company or bank under Oklahoma law if filing comments has expired, and the Board has consid- it: ered this proposal and all comments received in light of (1) "owns, controls, or has power to vote twenty-five the factors set forth in sections 3 and 4 of the BHC Act. percent (25%) or more of any class of voting securi- BOK is the largest commercial banking organization ties;"4 in Oklahoma, controlling $2.6 billion in deposits, repre- (2) "controls in any manner the election of a majority senting 9.5 percent of total deposits in commercial bank- of the directors or trustees of the bank or another ing organizations in the state.2 Liberty is the second company;"5 or largest commercial banking organization in Oklahoma, (3) "has control under the provisions of the federal controlling $2.1 billion in deposits, representing 7.7 [BHC Act] as amended or in accordance with the percent of total deposits in commercial banking organi- provisions of the regulations promulgated thereto by zations in the state. BOK has stated that it proposes to the [Board]."6 acquire the shares of Liberty as a passive investment, and that BOK will not control Liberty following this Thus, by its terms, the statute applies the deposit limitainvestment. tion to acquisitions of 25 percent of more of voting In connection with this proposal, the Board has re- securities, situations in which a company controls the ceived comments from Liberty objecting to this proposal election of a majority of the directors, or otherwise and asserting that the combination of BOK and Liberty exercises a controlling influence over another company would violate the Oklahoma Banking Code. The Okla- or bank within the meaning of the BHC Act and the Board's Rules. BOK proposes to acquire up to 9.9 percent of the 1. Liberty owns the following nonbanking companies, all of shares of Liberty, which is well below the 25 percent Oklahoma City, Oklahoma: Liberty Trust Company, which engages threshold established in Oklahoma law and the BHC in trust company activities pursuant to section 225.25(b)(3) of the Act, above which an investor is statutorily deemed to Board's Regulation Y; Mid-America Assurance Life Company, which engages in credit-related insurance underwriting pursuant to control the institution in which it invests. In addition, section 225.25(b)(8)(i); and Mid-America Insurance Agency, which engages in credit-related insurance sales, pursuant to section 225.25(b)(8)(i) of the Board's Regulation Y. Liberty also 3. Okla. Stat. Ann. tit. 6 § 502(D) (West Supp. 1994). directly engages in personal property leasing pursuant to sec- 4. Okla. Stat. Ann. tit. 6 § 502(B)(7) (West Supp. 1994). tion 225.25(b)(5) of the Board's Regulation Y. 5. Okla. Stat. Ann. tit. 6 § 502(B)(8) (West Supp. 1994). 2. State deposit data are as of March 31, 1995. 6. Okla. Stat. Ann. tit. 6 § 502(B)(9) (West Supp. 1994). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1053 BOK would not, by virtue of its proposed investment, approval be obtained before a bank holding company have the power to elect a majority of the board of acquires more than 5 percent of the voting shares of a directors of Liberty, and has committed that it would not bank suggests that Congress contemplated the acquisiseek or accept any representation on the board of Liberty tion by bank holding companies of between 5 and any of its subsidiaries. BOK also has stated that it does 25 percent of the voting shares of banks. Accordingly, not intend to exercise a controlling influence over Lib- the Board has previously approved the acquisition by a erty and has proposed to acquire the voting shares of bank holding company of less than a controlling interest Liberty as a passive investment. Specifically, BOK has in a bank where the proposal meets the factors set forth indicated that it does not intend to alter the operations of in the BHC Act.9 Liberty or its subsidiary banks in any respect upon The BHC Act requires the Board to evaluate a number acquisition of the shares of Liberty. BOK also has agreed of factors, including the competitive effects of the proto abide by certain commitments previously relied on by posal. The Board has previously noted that one company the Board in cases involving minority interests, to ensure need not acquire control of another company in order to that BOK would not control Liberty upon consummation substantially lessen competition between them. The of this proposal.7 Board has found that noncontrolling interests in directly The Oklahoma State Banking Department has re- competing depository institutions may raise serious viewed this proposal and determined that it is not prohib- questions under the BHC Act, and concluded that the ited by state law. Accordingly, the Department has not specific facts of each case will determine whether the objected to this proposal. minority investment in a company would be anticompeti- For these reasons, and in light of all the facts of tive.10 record, including the commitments made by BOK, the In this case, it is the Board's judgment, based upon Board concludes, that as currently structured, BOK's careful analysis of the record, that no significant reducproposal is consistent with Oklahoma law. The Board's tion in competition is likely to result from the acquisiapproval of this application is conditioned on BOK not tion. BOK and Liberty compete in two markets, the taking any action to violate Oklahoma law. Oklahoma City and Tulsa, Oklahoma, banking markets. The Board also has carefully considered Liberty's In the Oklahoma City banking market, assuming a comcomments in light of the factors the Board must consider bination of the two organizations, BOK would become under section 3(c) of the BHC Act. The Board previ- the largest depository institutions in the market, controlously has indicated that the acquisition of less than a ling $2.2 billion in deposits, representing 28 percent of controlling interest in a bank is not a normal acquisition total deposits in depository institutions in the market for a bank holding company.8 However, the requirement ("market deposits").11 The Herfindahl-Hirschman Inin section 3(a)(3) of the BHC Act that the Board's prior dex ("HHI") would increase by 340 points to 1076. In the Tulsa banking market, assuming a combination of the two organizations, BOK would remain the largest 7. These commitments are set forth in the Appendix and include commercial banking organization in the Tulsa, Okla- BOK's commitment not to exercise a controlling influence over the homa, banking market, with deposits of $2.2 billion, management or policies of Liberty; not to have any director, officer, or employee interlocks with Liberty; not to solicit or participate in representing 34.6 percent of total deposits in commercial soliciting proxies with respect to any matter presented to the banking organizations in the market. The HHI would shareholders of Liberty; and not to threaten to dispose of shares of increase by 503 points to 1609. Liberty in any manner as a condition of specific action or nonaction The Board also believes that the commitments made by Liberty. See, e.g., Summit Bancorp, Inc., 77 Federal Reserve by BOK to maintain its investment as a passive invest- Bulletin 952 (1991); The Summit Bancorporation, 75 Federal Reserve Bulletin 712 (1989); United Counties Bancorporation, 75 ment and not to exercise a controlling influence over Federal Reserve Bulletin 714 (1989). BOK and Liberty currently Liberty reduce the potential anticompetitive effects of maintain certain limited relationships, including the purchase and this proposal. Accordingly, based on all the facts of sale of loan participations to each other. After considering all of the facts in this case, including the size of the companies involved, the history and level of participations involved, the independent ability of each company to determine whether to participate in individual 9. Id. See also, Mansura Bancshares, Inc., 79 Federal Reserve loans, and the nature of these transactions, the Board believes that Bulletin 37 (1993); First State Corporation, 76 Federal Reserve continuation of these limited relationships, including purchase and Bulletin 376 (1990); and United Counties Bancorporation, supra. sale of loan participations, on an arm's length basis would not, in 10. See, Sun Banks, Inc., 71 Federal Reserve Bulletin 243 (1985). this case, permit BOK to exercise control over Liberty for purposes 11. Market share data are as of June 30, 1994. Market share data of the BHC Act. Accordingly, the Board concludes that BOK and are based on calculations in which the deposits of thrift institutions Liberty may maintain the current types and amount of business are included at 50 percent. The Board has indicated previously that relationships, subject to the requirement that BOK not increase thrift institutions have become, or have the potential to become, these relationships in any material way without notice to the Board major competitors of commercial banks. See, WM Bancorp, 76 or the Reserve Bank. Federal Reserve Bulletin 788 (1990); National City Corporation, 8. Sun Banks, Inc., 76 Federal Reserve Bulletin 542 (1990). 70 Federal Reserve Bulletin 743 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1054 Federal Reserve Bulletin • November 1995 record, the Board concludes that consummation of this Conclusion proposal would not have a significantly adverse effect on competition or the concentrations of resources in any Based on the foregoing, and in light of all the facts of relevant market in which BOK and Liberty compete.12 record, including commitments made by BOK in con- The Board also is required under section 3(c) of the nection with this proposal, the Board has determined that BHC Act to consider, among other factors, the financial the proposal should be, and hereby is, approved. The and managerial resources and future prospects of the Board's approval is specifically conditioned upon comcompanies and banks concerned, and the effect of the pliance by BOK with all of the commitments made in proposal on the convenience and needs of the communiconnection with these applications and with the condities to be served. The Board has reviewed the financial tions discussed in this order. and managerial resources of BOK, and has concluded on The Board's determination as to the nonbanking activthe basis of all of the facts of record that these resources, ities to be conducted by BOK are subject to all the as well as the future prospects of BOK, Liberty, and their conditions in Regulation Y, including those in sections respective subsidiaries, and the other supervisory factors 225.7 and 225.23(b) (12 C.F.R. 225.7 and 225.23(b)), that the Board must consider under section 3 of the BHC and to the Board's authority to require such modification Act, are consistent with approval of this application. The or termination of the activities of a holding company or Board also has concluded that convenience and needs any of its subsidiaries as it finds necessary to assure considerations are consistent with approval of this applicompliance with, or to prevent evasions of, the provication. sions and purposes of the BHC Act and the Board's regulations and order issued thereunder. The commit- Nonbanking Activities ments and conditions relied on by the Board in reaching this decision are deemed to be conditions imposed in BOK also has requested Board approval, pursuant to writing by the Board in connection with its finds and section 4(c)(8) of the BHC Act, to engage in trust decision, and as such may be enforced in proceedings activities, leasing, credit-related insurance underwriting, under applicable law. and the sale of credit-related insurance through Liberty The acquisition of Liberty's subsidiary banks should and its nonbanking subsidiaries. As noted above, these not be consummated before the fifteenth calendar day activities are permissible for bank holding companies following the effective date of this order, and the bankunder the Board's Regulation Y. In light of the facts of ing and nonbanking transaction shall not be consumrecord, including the percentage of Liberty's shares to be mated later than three months following the effective acquired in this transaction, the Board concludes that date of this order, unless such period is extended for BOK's investment in shares of Liberty would not signifgood cause by the Board or by the Federal Reserve Bank icantly affect competition in any relevant market. Furof Kansas City, acting pursuant to delegated authority.13 thermore, there is no evidence in the record to indicate that consummation of this proposal is likely to result in any significantly adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practice not outweighed by benefits to the public. Accordingly, the Board has determined that the balance of public interest factors it must consider under section 4(c)(8) of the BHC Act is favorable and consistent with approval of BOK's notice. 13. Liberty contends that BOK should not be permitted an extended period of time to make its proposed acquisition and that each purchase of shares by BOK should be subject to review 12. Under the revised Department of Justice Merger Guidelines, separately in order to determine the effect of that purchase on the 49 Federal Register 26,823 (June 29, 1984), a market in which the ownership structure and on control of Liberty. The Board's practice post-merger HHI is between 1000 and 1800 is considered moder- has been to permit an applicant 90 days to consummate a proposal. ately concentrated. The Justice Department has informed the Board If the proposal is not consummated within that period, an applicant that a bank merger or acquisition generally will not be challenged may seek an extension of the consummation period. At the time an (in the absence of other factors indicating anticompetitive effects) extension is requested, the Board or the Reserve Bank will review unless the post-merger HHI is at least 1800 and the merger in- the proposal to assure that the circumstances that served as the creases the HHI by more than 200 points. The Justice Department basis for Board approval of the transaction, have not changed. In has stated that the higher than normal HHI thresholds for screening the event that Applicant in this case is unable to acquire up to 9.9 bank mergers for anticompetitive effects implicitly recognize the percent of Liberty's shares and to consummate the investment as competitive effect of limited-purpose lenders and other non- proposed, an extension of the consummation period may be sought depository financial institutions. from the Reserve Bank in accordance with this procedure. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1055 By order of the Board of Governors, effective ORDERS ISSUED UNDER INTERNATIONAL BANKING September 11, 1995. ACT Voting for this action: Vice Chairman Blinder and Governors Caisse Nationale de Credit Agricole Kelley, Lindsey, Phillips, and Yellen. Absent and not voting: Chairman Greenspan. Paris, France WILLIAM W. WILES Order Approving Establishment of a Representative Secretary of the Board Office Caisse Nationale de Credit Agricole, Paris, France Appendix ("Bank"), a foreign bank within the meaning of the International Banking Act ("IBA"), has applied under In connection with its application to acquire 9.9 percent section 10(a) of the IBA (12 U.S.C. § 3107(a)) to estabof the voting shares of Liberty, BOK has committed that lish a representative office in Houston, Texas. The Forit will not, without the Board's prior approval: eign Bank Supervision Enhancement Act of 1991, which (1) Take any action causing Liberty or its bank subsid- amended the IBA, provides that a foreign bank must iaries to become a subsidiary of BOK; obtain the approval of the Board to establish a represen- (2) Acquire or retain shares that would cause the tative office in the United States. combined interests of BOK and its officers, directors Notice of the application, affording interested persons and affiliates to equal or exceed 25 percent of the an opportunity to comment, has been published in a outstanding voting shares of Liberty; newspaper of general circulation in Houston, Texas (The (3) Exercise or attempt to exercise a controlling influ- Houston Chronicle, May 26, 1995). The time for filing ence over the management or policies of Liberty or its comments has expired, and the Board has considered the bank subsidiaries; application and all comments received. (4) Seek or accept representation on the board of Bank, with total assets equivalent to approximately directors of Liberty; $279 billion,1 is the thirteenth largest banking organiza- (5) Have or seek to have any employee or representa- tion in the world, and the largest retail banking organizative serve as an officer, agent or employee of Liberty tion in France. Bank operates a number of international or its bank subsidiaries; offices and subsidiaries engaged in activities such as (6) Propose a director or slate of directors in opposi- leasing, commodities trading, and funds management. tion to a nominee or slate of nominees proposed by Bank currently operates a state-licensed branch in Chithe management or board of directors of Liberty; cago, Illinois, a limited federal branch in New York, (7) Solicit or participate in soliciting proxies with New York, and a representative office in San Francisco, respect to any matter presented to the shareholders of California. In addition, Bank operates six U.S. subsidiar- Liberty; ies engaged in, among other things, leasing, financing, (8) Attempt to influence the dividend policies or prac- brokerage, and financial consulting activities. tices of Liberty or its bank subsidiaries; The proposed representative office would engage in (9) Attempt to influence the loan and credit decisions traditional representative functions, including loan proor policies of Liberty and its bank subsidiaries, the duction and researching potential markets. The proposed pricing of services, any personnel decision, the loca- representative office would not accept any deposits, tion of any offices, branching, the hours of operation, make any loans, make any business decisions for the or similar activities of Liberty and its bank subsidiar- account of Bank, or otherwise transact any banking ies; business. (10) Dispose or threaten to dispose of shares of Lib- In acting on an application to establish a representaerty in any manner as a condition of specific action or tive office, the IBA and Regulation K provide that the nonaction by Liberty; or Board shall take into account whether the foreign bank (11) Enter into any other banking or nonbanking transactions with Liberty, except transactions in the ordinary course of business on terms and conditions comparable to transactions with other banks or applicable 1. Bank is a cooperative bank organized under the laws of nonbanking persons consistent with past practices. France. Bank coordinates the operations of 67 regional and 2,865 This commitment 11 is subject to the condition im- local credit cooperatives. Bank, together with its affiliated regional and local credit cooperatives, comprise the Credit Agricole Group posed by this order limiting the types and levels of ("CA Group"). The CA Group has total consolidated assets equivtransactions to the types and levels current outstandalent to approximately $328 billion. All financial data are as of ing. December 31, 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1056 Federal Reserve Bulletin • November 1995 engages directly in the business of banking outside of vision on a consolidated basis by its home country the United States and has furnished to the Board the supervisors. information it needs to assess the application adequately. The Board also notes that Bank engages directly in the The Board also shall take into account whether the business of banking outside the United States through its foreign bank and any foreign bank parent is subject to banking operations in France and elsewhere. Bank has comprehensive supervision or regulation on a consoli- provided the Board with the information necessary to dated basis by its home country supervisor (12 U.S.C. assess the application adequately. § 3105(d)(2); 12 C.F.R. 211.24).2 The Board may also The Board also has taken into account the additional take into account additional standards as set forth in the standards set forth in section 7 of the IBA and Regula- IBA and Regulation K (12 U.S.C. § 3105(d)(3)-(4); tion K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 12 C.F.R. 211.24(c)). 211.24(c)(2)). In this regard, the Banque de France has In this case, with respect to the issue of supervision by approved the establishment of the proposed representahome country authorities, the Board has considered the tive office. following information. Bank is subject to the regulatory With respect to the financial and managerial resources and supervisory authority of the Banque de France, the of Bank, taking into consideration Bank's record of Commission Bancaire, the Comite de la Reglementation operations in its home country, its overall financial re- Bancaire, and the Comite des Etablissements de Credit. sources, and its standing with its home country supervi- The Comite de la Reglementation Bancaire issues regu- sors, the Board also has determined that financial and lations setting forth the supervisory standards to which managerial factors are consistent with approval of the credit institutions are subject. The Comite des Etablisse- proposed representative office. Bank appears to have the ments de Credit grants banking licenses, approves experience and capacity to support the proposed reprede novo banks or branches, and is empowered to with- sentative office and also has established controls and draw authorization if a credit institution fails to comply procedures for the proposed representative office to enwith regulatory requirements. The Commission Ban- sure compliance with U.S. law. caire, which has primary responsibility for supervising Finally, with respect to access to information about Bank, monitors Bank's compliance with French law and Bank's operations, the Board has reviewed the restricregulatory standards, as well as Bank's financial condi- tions on disclosure in certain jurisdictions where Bank tion. France's central bank, the Banque de France, is the operates and has communicated with appropriate govcoordinating body for the regulatory agencies. ernmental authorities regarding access to information. The Board has previously determined in connection Bank has committed to make available to the Board such with an application involving another French bank that information on the operations of Bank and its affiliates the bank was subject to comprehensive, consolidated that the Board deems necessary to determine and enforce home country supervision.3 In this case, Bank is super- compliance with the IBA, the Bank Holding Company vised on the same terms and conditions as the other Act of 1956, as amended, and other applicable Federal French bank. Based on all facts of record, the Board has law. To the extent that the provision of such information determined that Bank is subject to comprehensive super- may be prohibited by law, Bank has committed to cooperate with the Board in obtaining any consents or waivers that might be required from third parties for disclosure. In light of these commitments and other facts of 2. In assessing this standard, the Board considers, among other record, and subject to the condition described below, the factors, the extent to which the home country supervisors: (i) Ensure that the bank has adequate procedures for monitor- Board concludes that Bank has provided adequate assuring and controlling its activities worldwide; ances of access to any necessary information the Board (ii) Obtain information on the condition of the bank and its may request. subsidiaries and offices through regular examination reports, On the basis of all the facts of record, and subject to audit reports, or otherwise; the commitments made by Bank, as well as the terms (iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic; and conditions set forth in this order, the Board has (iv) Receive from the bank financial reports that are consoli- determined that Bank's application to establish a repredated on a worldwide basis, or comparable information that sentative office should be, and hereby is, approved. permits analysis of the bank's financial condition on a world- Should any restrictions on access to information on the wide consolidated basis; and operations or activities of Bank and any of its affiliates (v) Evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. subsequently interfere with the Board's ability to deter- These are indicia of comprehensive, consolidated supervision. mine the compliance by Bank or its affiliates with appli- No single factor is essential and other elements may inform the cable federal statutes, the Board may require termination Board's determination. of any of Bank's direct or indirect activities in the 3. Banque National de Paris, 81 Federal Reserve Bulletin 515 United States. Approval of this application is also specif- (1995). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1057 ically conditioned on compliance by Bank with the and conditions referred to above are conditions imposed commitments made in connection with this application, in writing by the Board in connection with its decision, and with the conditions in this order.4 The commitments and may be enforced in proceedings under 12 U.S.C. §1818 against Bank, its offices, and its affiliates. By order of the Board of Governors, effective September 5, 1995. 4. The Board's authority to approve the establishment of the proposed office parallels the continuing authority of the Texas Voting for this action: Chairman Greenspan, Vice Chairman Banking Department to license offices of a foreign bank. The Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen. Board's approval of this application does not supplant the authority of the State of Texas and its agent, the Texas Banking Department, to license the proposed office of Bank in accordance with any terms JENNIFER J. JOHNSON or conditions that the State of Texas may impose. Deputy Secretary of the Board APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) Date First Commerce Corporation, Peoples Bancshares, Inc., September 14, 1995 New Orleans, Louisiana Chalmette, Louisiana First Empire State Corporation, M&T Bank, National Association, September 8, 1995 Buffalo, New York Oakfield, New York Old National Bancorp., City National Bancorp, September 29, 1995 Evansville, Indiana Fulton, Kentucky Section 4 Effective Applicant(s) Bank(s) Date FCNB Corp., Laurel Bancorp, Inc., September 8, 1995 Frederick, Maryland Laurel, Maryland First United Bancshares, Inc., First United Trust Company, N.A., September 29, 1995 El Dorado, Arkansas El Dorado, Arkansas SunTrust Banks, Inc., Personal Express Loans, Inc., September 14, 1995 Atlanta, Georgia Atlanta, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1058 Federal Reserve Bulletin • November 1995 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant(s) BBaannkk((ss)) Bank Date 215 Holding Co., Valley Bancorporation, Inc., Minneapolis September 13, 1995 Minneapolis, Minnesota Le Sueur, Minnesota American Bancshares, Inc., American Bank of Bradenton, Atlanta August 31, 1995 Bradenton, Florida Bradenton, Florida Barnett Banks, Inc., Community Bank of the Islands, Atlanta September 15, 1995 Jacksonville, Florida Sanibel, Florida Beaman Bancshares, Inc., Producers Savings Bank, Chicago September 14, 1995 Beaman, Iowa Green Mountain, Iowa Boatmen's Bancshares, Inc., Citizens Bancshares Corporation, St. Louis August 31, 1995 St. Louis, Missouri Little Rock, Arkansas Citizens Bancshares Corporation, Boatmen's Arkansas, Inc., St. Louis August 31, 1995 Little Rock, Arkansas Little Rock, Arkansas Citizens National Bancshares of Citizens National Bank of Bossier Dallas August 30, 1995 Bossier, Inc., City, Bossier City, Louisiana Bossier City, Louisiana Comerica Incorporated, QuestStar Bank, N.A., Chicago September 7, 1995 Detroit, Michigan Houston, Texas Comerica Texas Incorporated, Dallas, Texas Comerica Incorporated, Metrobank, Chicago September 6, 1995 Detroit, Michigan Los Angeles, California Comerica California Incorporated, San Jose, California Commercial Bank of Mott Commercial Bank of Mott, Minneapolis August 30, 1995 Employee Stock Ownership Mott, North Dakota Plan and Trust, Mott, North Dakota Mott Bankshares, Inc., Mott, North Dakota Confluence Bancshares Colonial Bancshares, Inc., Chicago September 1, 1995 Corporation, St. Louis, Missouri St. Peters, Missouri Country Bank Shares, Inc., The Bank of Wilber, Kansas City September 1, 1995 Milford, Nebraska Wilber, Nebraska Dentel Bancorporation, Maxwell Bancorporation, Chicago September 1, 1995 Victor, Iowa Maxwell, Iowa Colfax Bancshares, Inc., Victor, Iowa Ercil P. and Lee Nell Phillips Pleasanton State Bank, Kansas City September 15, 1995 Charitable Remainder Unitrust, Pleasanton, Nebraska Pleasanton, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1059 Section 3—Continued Reserve Effective AApppplliiccaanntt((ss)) BBaannkk((ss)) Bank Date FCT Bancshares, Inc., First Central Holdings, Inc., Dallas August 28, 1995 Mart, Texas Dover, Delaware The First National Bank of Mart, Mart, Texas Financial Trust Corp, Washington County National Bank, Philadelphia September 15, 1995 Carlisle, Pennsylvania Williamsport, Maryland FirstBank Holding Company of FirstBank Holding Company of Kansas City September 8, 1995 Colorado ESOP, Colorado, Lakewood, Colorado Lakewood, Colorado Firstbank of Illinois Co., Confluence Bancshares Corporation, Chicago September 1, 1995 Springfield, Illinois St. Peters, Missouri First Central Holdings, Inc., The First National Bank of Mart, Dallas August 28, 1995 Dover, Delaware Mart, Texas F&M Bancorporation, Peoples State Bank Chicago September 8, 1995 Kaukauna, Wisconsin of Bloomer, Bloomer, Wisconsin First State Bancorp, Inc., The First State Bank of Adams Cleveland September 20, 1995 Winchester, Ohio County, Winchester, Ohio Kensington Bancorp, Inc., First State Bank of Kensington, Minneapolis September 7, 1995 Kensington, Minnesota Kensington, Minnesota Libertyville Bancorp, Inc., Libertyville Bank and Trust Company, Chicago August 30, 1995 Libertyville, Illinois Libertyville, Illinois Maedgen & White, Ltd., Plains Capital Corporation, Dallas September 14, 1995 Lubbock, Texas Lubbock, Texas Maedgen & White, Ltd., Friona Bancorporation, Inc., Dallas September 15, 1995 Lubbock, Texas Friona, Texas Plains Capital Corporation, Friona State Bank, Lubbock, Texas Friona, Texas Midland Bancorporation, Inc., Adwildon Corporation, New York September 8, 1995 Paramus, New Jersey Hackensack, New Jersey NBD Bancorp, Inc., NBD Bank, Chicago September 12, 1995 Detroit, Michigan Venice, Florida Northeast Portland Community Albina Community Bank, San Francisco September 1, 1995 Development Trust, Portland, Oregon Portland, Oregon Albina Community Bancorp, Portland, Oregon Norwest Corporation, Liberty National Bank, Minneapolis September 1, 1995 Minneapolis, Minnesota Austin, Texas Norwood Associates II, Adwildon Corporation, New York September 8, 1995 Hackensack, New Jersey Hackensack, New Jersey Olympia Bancorporation, Inc., Olympia Bancorporation, Inc., Chicago September 7, 1995 Employee Stock Ownership Chicago Heights, Illinois Plan, Chicago Heights, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1060 Federal Reserve Bulletin • November 1995 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Philipps Investment Company Gratiot Bancshares, Inc., Chicago September 1, 1995 Limited Partnership, Gratiot, Wisconsin Spring Hill, Florida Pikeville National Corporation, United Whitley Corp., Cleveland September 15, 1995 Pikeville, Kentucky Williamsburg, Kentucky Whitley Acquisition Corp., Pikeville, Kentucky Platte Valley Cattle Company, Pleasanton State Bank, Kansas City September 15, 1995 Grand Island, Nebraska Pleasanton, Nebraska Rice Insurance Agency, Inc., Collegiate Peaks Bancorporation, Inc. Kansas City September 5, 1995 Strasburg, Colorado Buena Vista, Colorado Security State Bank Holding Security State Bank of Jamestown, Minneapolis September 7, 1995 Company, Jamestown, North Dakota Hannaford, North Dakota Thomasville Bancshares, Inc., Thomasville National Bank, Atlanta August 31, 1995 Thomasville, Georgia Thomasville, Georgia Western Dakota Holding Dewey County Bank, Minneapolis September 11, 1995 Company, Timber Lake, South Dakota Timber Lake, South Dakota Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Centennial Holdings, Ltd., Centennial Funding Corporation, San Francisco September 13, 1995 Olympia, Washington Puyallup, Washington Central Illinois Bancorp, Inc. Mortgage Services of Illinois, Chicago September 13, 1995 Sidney, Illinois Bloomington, Illinois Commerzbank AG, Commerz International Capital New York August 28, 1995 Frankfurt, Germany Management GmbH, Frankfurt, Germany Martingale Asset Management, L.P., Boston, Massachusetts First Security Corporation, First Security Leasing Company, San Francisco September 18, 1995 Salt Lake City, Utah Salt Lake City, Utah Hibernia Corporation, To engage de novo in making, Atlanta September 8, 1995 New Orleans, Louisiana acquiring, or servicing loans or other extensions of credit HSBC Holdings pic, James Capel Incorporated, New York August 31, 1995 London, England New York, New York HSBC Holdings B.V., Amsterdam, The Netherlands JDOB, Inc., To make loans for its own account Minneapolis August 25, 1995 Sandstone, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1061 Section 4—Continued Nonbanking Reserve Effective AApppplliiccaanntt((ss)) Activity/Company Bank Date MBNA Corporation, In making, acquiring and servicing Philadelphia August 29, 1995 Newark, Delaware consumer loans and credit card loans; acquiring and servicing mortgage loans; and offering credit insurance (life, disability, and involuntary unemployment) NBD Bancorp, Inc., To engage in mortgage lending and Chicago August 30, 1995 Detroit, Michigan servicing; real property leasing; credit insurance; management consulting; and real estate appraising on a nationwide basis New Era Bancorporation, Inc., St. Francois County Financial Corp., St. Louis September 7, 1995 Fredericktown, Missouri Farmington, Missouri New York Mills Bancshares, Inc., To engage de novo in lending activities Minneapolis August 25, 1995 New York Mills, Minnesota Norwest Corporation, Southeastern Residential Mortgage, Minneapolis August 29, 1995 Minneapolis, Minnesota Raleigh, North Carolina Norwest Corporation, Towne Square Mortgage, Minneapolis August 24, 1995 Minneapolis, Minnesota San Diego, California Plains Capital Corporation, Sunrise Leasing Corporation, Dallas September 15, 1995 Lubbock, Texas Friona, Texas Maedgen & White, Ltd., Lubbock, Texas Provident Bancorp, Inc., Mathematical Investment, Inc., Cleveland September 20, 1995 Cincinnati, Ohio Cleveland, Ohio Ramsey Financial Corporation, Heritage Federal Savings Bank, Minneapolis August 25, 1995 Devils Lake, North Dakota Cando, North Dakota First Bank fsb, Fargo, North Dakota Shawmut National Corporation, Interpay, Inc., Boston September 8, 1995 Hartford, Connecticut Mansfield, Massachusetts Southeast Bancorp of Texas, Inc., Bonnet Financial Services, Inc., Dallas September 15, 1995 Winnie, Texas Winnie, Texas Spencer Bancorporation, Inc., To form de novo a wholly owned Chicago August 31, 1995 Spencer, Wisconsin community development corporation, and engage in permissible nonbanking activities that promote community welfare by making investments that will primarily benefit low- and moderate-income persons and/or small businesses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1062 Federal Reserve Bulletin • November 1995 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Standard Chartered PLC, Standard Chartered Trade Services New York September 15, 1995 London, England Corporation, Standard Chartered Holdings New York, New York Limited, London, England Standard Chartered Bank, London, England Wells Fargo & Company, Towne Square Mortgage, San Francisco August 24, 1995 San Francisco, California San Diego, California Norwest Corporation, Minneapolis, Minnesota Withee Bank Shares, Inc. Hometown Development Corporation, Chicago August 30, 1995 Withee, Wisconsin Withee, Wisconsin Sections 3 and 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date First Financial Bancorp. Bright Financial Services, Inc. Cleveland September 7, 1995 Hamilton, Ohio Flora, Indiana 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 Bank of Oakfield, M&I Central State Bank, Chicago September 5, 1995 Oakfield, Wisconsin Ripon, Wisconsin Community Bank of the Islands, Interim Bank of the Islands, Atlanta September 15, 1995 Sanibel, Florida Sanibel, Florida Triangle Bank, NationsBank, National Association, Richmond August 29, 1995 Raleigh, North Carolina Charlotte, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1063 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Board's order on April 3, 1995. On August 17, 1995, the Federal Reserve Banks in which the Board of Governors is court denied the motion. not named a party. Board of Governors v. Inter americas Investments, Ltd., No. H-95-565 (S.D. Texas, filed February 24, 1995). Action to freeze certain assets of a company pending administra- Kuntz v. Board of Governors, No. 95-1495 (D.C. Cir., filed tive adjudication of civil money penalty. On March 1, September 21, 1995). Petition for review of Board order 1995, the court issued a stipulated order requiring the dated August 23, 1995, approving the applications of The company to deposit $1 million into the registry of the Fifth Third Bank, Cincinnati, Ohio, to acquire certain court. assets and assume certain liabilities of 12 branches of In re Subpoena Duces Tecum, No. 95-5034 (D.C. Cir., filed PNC Bank, Ohio, N.A., Cincinnati, Ohio, and to establish January 26, 1995). Appeal of partial denial of plaintiff's certain branches. motion to compel production of examination and other Lee v. Board of Governors, No. 94-4134 (2nd Cir., filed supervisory material in connection with a shareholder August 22, 1995). Petition for review of Board orders derivative action against a bank holding company. Oral dated July 24, 1995, approving certain steps of a corpoargument is scheduled for November 7, 1995. rate reorganization of U.S. Trust Corporation, New York, Kuntz v. Board of Governors, No. 95-3044 (6th Cir., filed New York, and the acquisition of U.S. Trust by Chase January 12, 1995). Petition for review of a Board order Manhattan Corporation, New York, New York. On Sepdated December 19, 1994, approving an application by tember 12, 1995, the court denied petitioners' motion for KeyCorp, Cleveland, Ohio, to acquire BANKVERMONT an emergency stay of the Board's orders. Corp., Burlington, Vermont. On September 21, the court Jones v. Board of Governors, No. 95-1359 (D.C. Cir., filed granted the Board's motion to dismiss. July 17, 1995). Petition for review of a Board order dated In re Subpoena Duces Tecum, Misc. No. 95-06 (D.D.C., June 19, 1995, approving the application by First Comfiled January 6, 1995). Action to enforce subpoena seekmerce Corporation, New Orleans, Louisiana, to acquire ing pre-decisional supervisory documents sought in con- Lakeside Bancshares, Lake Charles, Louisiana. Petitioner nection with an action by Bank of New England Corporafiled a motion for a stay of the Board's order pending tion's trustee in bankruptcy against the Federal Deposit appeal on August 16, 1995. On August 29, 1995, the Insurance Corporation. The Board filed its opposition on Board filed a motion to dismiss, and on September 5 it January 20, 1995. filed its opposition to the stay motion. Beckman v. Greenspan, No. 95-35473 (9th Cir., filed May Board of Governors v. Scott, Misc. No. 95-127 (LFO/PJA) 4, 1995). Appeal of dismissal of action against Board and (D. D.C., filed April 14, 1995). Application to enforce others seeking damages for alleged violations of constituinvestigatory subpoenas for documents and testimony. tional and common law rights. The appellants' brief was On August 3, 1995, the magistrate judge issued an order filed on June 23, 1995; the Board's brief was filed on July granting in part and denying in part the Board's applica- 12, 1995. tion. Board of Governors v. Ghaith R. Pharaon, No. 91-CIV- Money Station, Inc. v. Board of Governors, No. 95-1182 6250 (S.D. New York, filed September 17, 1991). Action (D.C. Cir., filed March 30, 1995). Petition for review of a to freeze assets of individual pending administrative adju- Board order dated March 1, 1995, approving notices by dication of civil money penalty assessment by the Board. Bank One Corporation, Columbus, Ohio; CoreStates Fi- On September 17, 1991, the court issued an order temponancial Corp., Philadelphia, Pennsylvania; PNC Bank rarily restraining the transfer or disposition of the individ- Corp., Pittsburgh, Pennsylvania; and KeyCorp, Cleve- ual's assets. land, Ohio, to acquire certain data processing assets of National City Corporation, Cleveland, Ohio, through a joint venture subsidiary. FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD Jones v. Board of Governors, No. 95-1142 (D.C. Cir., filed OF GOVERNORS March 3, 1995). Petition for review of a Board order dated February 2, 1995, approving the applications by Mr. Colin Vickerie First Commerce Corporation, New Orleans, Louisiana, to New York, New York merge with City Bancorp, Inc., New Iberia, Louisiana, and First Bankshares, Inc.,. Slidell, Louisiana. Petitioner The Federal Reserve Board announced on September 19, filed a motion for injunctive relief and for a stay of the 1995, the issuance of a Cease and Desist Order against Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1064 Federal Reserve Bulletin • November 1995 Mr. Colin Vickerie, an officer of the United States Trust Constitution Bancorp, Inc. Company of New York, New York. Mr. Vickerie is a Philadelphia, Pennsylvania former officer of Bankers Trust Company of California, N.A., a limited purpose national trust company that is a Constitution Bank subsidiary of Bankers Trust New York Corporation, Philadelphia, Pennsylvania New York. Written Agreement dated November 18, 1993; terminated August 31, 1995. TERMINATION OF ENFORCEMENT ACTIONS The Federal Reserve Board announced on September 5, Union State Bank 1995, the termination of the following enforcement ac- Upton, Wyoming tions: Written Agreement dated February 4, 1995; terminated United American Bank of Central Florida September 5, 1995. Orlando, Florida Written Agreement dated February 6, 1995; terminated Security Bank Corporation August 17, 1995. Manassas, Virginia UST Corp. Written Agreement dated April 1, 1995; terminated Sep- Boston, Massachusetts tember 11, 1995. Written Agreement dated August 3, 1992; terminated July 21, 1995. Sparta State Bank Sparta, Michigan The Federal Reserve Board announced on September 29, 1995, the termination of the following enforcement ac- Written Agreement dated August 3, 1993; terminated tions: July 31, 1995. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Financial Markets A24 Commercial paper and bankers dollar DOMESTIC FINANCIAL STATISTICS acceptances outstanding A25 Prime rate charged by banks on short-term Money Stock and Bank Credit business loans A26 Interest rates—money and capital markets A4 Reserves, money stock, liquid assets, and debt All Stock market—Selected statistics measures A5 Reserves of depository institutions, Reserve Bank Federal Finance credit A6 Reserves and borrowings—Depository A28 Federal fiscal and financing operations institutions A29 U.S. budget receipts and outlays A7 Selected borrowings in immediately available A30 Federal debt subject to statutory limitation funds—Large member banks A30 Gross public debt of U.S. Treasury— Types and ownership Policy Instruments A31 U.S. government securities dealers—Transactions A8 Federal Reserve Bank interest rates A32 U.S. government securities dealers— A9 Reserve requirements of depository institutions Positions and financing A10 Federal Reserve open market transactions A3 3 Federal and federally sponsored credit agencies—Debt outstanding Federal Reserve Banks All Condition and Federal Reserve note statements Securities Markets and Corporate Finance A12 Maturity distribution of loan and security A34 New security issues—Tax-exempt state and local holdings governments and corporations A35 Open-end investment companies—Net sales Monetary and Credit Aggregates and assets A13 Aggregate reserves of depository institutions A35 Corporate profits and their distribution and monetary base A35 Nonfarm business expenditures on new A14 Money stock, liquid assets, and debt measures plant and equipment A16 Deposit interest rates and amounts outstanding— A36 Domestic finance companies—Assets and commercial and BIF-insured banks liabilities, and consumer, real estate, and business A17 Bank debits and deposit turnover credit Commercial Banking Institutions Real Estate A18 Assets and liabilities, Wednesday figures A3 7 Mortgage markets A3 8 Mortgage debt outstanding Weekly Reporting Commercial Banks— Assets and liabilities Consumer Installment Credit A21 Large reporting banks A39 Total outstanding A23 Branches and agencies of foreign banks A3 9 Terms Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • November 1995 DOMESTIC FINANCIAL STATISTICS- A58 Banks' own claims on foreigners CONTINUED A59 Banks' own and domestic customers' claims on foreigners A59 Banks' own claims on unaffiliated foreigners Flow of Funds A60 Claims on foreign countries— A40 Funds raised in U.S. credit markets Combined domestic offices and foreign branches A42 Summary of financial transactions A43 Summary of credit market debt outstanding A44 Summary of financial assets and liabilities Reported by Nonbanking Business Enterprises in the United States DOMESTIC NONFINANCIAL STATISTICS A61 Liabilities to unaffiliated foreigners A62 Claims on unaffiliated foreigners Selected Measures A45 Nonfinancial business activity— Securities Holdings and Transactions Selected measures A63 Foreign transactions in securities A45 Labor force, employment, and unemployment A64 Marketable U.S. Treasury bonds and A46 Output, capacity, and capacity utilization notes—Foreign transactions A47 Industrial production—Indexes and gross value A49 Housing and construction A50 Consumer and producer prices Interest and Exchange Rates A51 Gross domestic product and income A52 Personal income and saving A65 Discount rates of foreign central banks A65 Foreign short-term interest rates A66 Foreign exchange rates INTERNATIONAL STATISTICS Summary Statistics A67 GUIDE TO STATISTICAL RELEASES AND A53 U.S. international transactions—Summary SPECIAL TABLES A54 U.S. foreign trade A54 U.S. reserve assets A54 Foreign official assets held at Federal Reserve Special Tables Banks A68 Terms of lending at commercial banks, A55 Selected U.S. liabilities to foreign official August 1995 institutions A72 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1995 Reported by Banks in the United States A55 Liabilities to and claims on foreigners A56 Liabilities to foreigners A76 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GNMA Government National Mortgage Association n.a. Not available GDP Gross domestic product n.e.c. Not elsewhere classified HUD Department of Housing and Urban P Preliminary Development r Revised (Notation appears on column heading IMF International Monetary Fund when about half of the figures in that column IO Interest only are changed.) IPCs Individuals, partnerships, and corporations * Amounts insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is millions) 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 • November 1995 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1994 1995 1995 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q3 Q4 Ql Q2 Apr. May June July Aug. Reserves of depository institutions2 1 Total -1.9 -3.3 -3.7 -8.0 -12.2 -4.1 -8.5 6.3' -2.9 2 Required -1.9 -3.0 -4.0 -7.0 -11.5 -6.8 -10.4 3.8 -.8 3 Nonborrowed -3.5 -2.1 -2.4 -8.6 -13.0 -4.9 -11.1 4.3 -1.1 4 Monetary base3 7.5 6.9 6.4 6.2 7.8 7.2 -2.7 -.4 3.3 Concepts of money, liquid assets, and debt4 5 Ml 2.4 -1.2 .0 -.9 1.9 -7.1' .9' 1.2' -1.4 6 M2 1.0 -.3 1.7 4.3 4.2 5.3 11.7 6.0' 8.3 7 M3 2.2 1.7 4.3 7.0 6.2 8.0 12.7 8.3' 8.0 8 L 2.6r 2.2r 6.5' 8.3r 6.8r 7.6' 9.5' 12.1 n.a. 9 Debt 4.3r 5.2 5.5r 6.7r 6.6' 8.3' 5.0' 3.0 n.a. Nontransaction components 10 In M25 .3 .1 2.4 6.7 5.4r 11.0' 16.6 8.2' 12.6 11 In M3 only6 9.0 12.4 18.5 20.7 15.8 21.2' 17.1' 18.9' 7.0 Time and savings deposits Commercial banks 12 Savings, including MMDAs -4.6 -8.5 -13.2 -7.3 -12.1 2.0 18.2 4.3 14.9 13 Small time7 9.5 16.0 24.3 23.4 23.0 17.7 13.4 9.2 4.4 14 Large time8-9 13.6 17.7 12.7 16.3 2.3 25.2 13.3 19.2' 9.6 Thrift institutions 15 Savings, including MMDAs -11.5 -17.6 -20.5 -14.5' -16.8 -7.2' -4.0' -7.6 -6.3 16 Small time7 1.0 10.4 20.7 25.6 29.3 20.0 2.0 -.3 .7 17 Large time8 8.3 14.1 23.3 14.6 18.8 -13.5 6.8 30.5 9.9 Money market mutual funds 18 General purpose and broker-dealer 5.7 7.5 7.9 17.9 15.7 28.2 61.0 44.0 37.0 19 Institution-only -4.5 7.3 10.0 27.1 24.8 11.8 66.5 39.7 -9.0 Debt components4 20 Federal 3.9 5.9 5.3r 5.3 .7 5.9 8.4 4.1 n.a. 21 Nonfederal 4.4r 5.0 5.7 7.2r 8.8' 9.1' 3.8' 2.6 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 all 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 fund 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 flow institutions, credit union share draft accounts, and demand deposits at thrift institutions. 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 US. 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. residents, and (3) balances in both taxable and tax-exempt general-purpose and broker-dealer and (4) money market fund balances (institution-only), less (5) a consolidation adjustment money market funds. Excludes individual retirement accounts (IRAs) and Keogh balances that represents the estimated amount of overnight RPs and Eurodollars held by institutionat depository institutions and money market funds. Also excludes all balances held by only money market funds. This sum is seasonally adjusted as a whole. U.S. commercial banks, money market funds (general purpose and broker-dealer), foreign 7. Small time deposits—including retail RPs—are those issued in amounts of less governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is than $100,000. All IRA and Keogh account balances at commercial banks and thrift computed by adjusting its non-Mi component as a whole and then adding this result to institutions are subtracted from small time deposits. 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 funds, 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 1995 July Aug. July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 413,473 411,634r 409,407 411,274 407,072r 409,645 409,392 410,301 408,544 U.S. government securities 2 Bought outright—System account 372,815 371,272 371,942 372,389 368,444 370,826 370,941 372,422 372,241 3 Held under repurchase agreements 2,672 1,531 133 0 0 0 0 154 0 Federal agency obligations 4 Bought outright 3,140 3,079 3,019 3,081 3,076 3,063 3,063 3,028 3,028 5 Held under repurchase agreements 180 121 52 0 0 0 0 216 0 6 Acceptances 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 69 85 112 133 5 460 2 4 9 8 Seasonal credit 169 231 259 232 240 250 240 253 267 9 Extended credit 0 0 0 0 0 0 0 0 0 10 Float 359 572r 294 893 596r 294 597 45 276 11 Other Federal Reserve assets 34,068 34,742 33,598 34,546 34,711 34,751 34,549 34,181 32,723 12 Gold stock 11,054 11,053 11,053 11,053 11,053 11,053 11,053 11,053 11,053 13 Special drawing rights certificate account 8,018 10,357 10.518 10,518 10,518 10,518 10,518 10,518 10,518 14 Treasury currency outstanding 23,397 23,457 23.519 23,457 23,471 23,485 23,499 23,513 23,527 ABSORBING RESERVE FUNDS 15 Currency in circulation 409,113 410,854 410,316 410,953 409,584 409,487 410,873 410,983 409,933 16 Treasury cash holdings 316 318 310 335 313 306 309 309 309 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,530 6,984 5,257 5,568 5,616 6,377 5,134 5,221 5,541 18 Foreign 209 196 184 193 212 181 203 176 183 19 Service-related balances and adjustments . . 4,361 4,347 4,599 4,217 4,403 4,427 4,484 4,521 4,738 20 Other 284 289 289 328 288 268 289 296 285 21 Other Federal Reserve liabilities and capital , 12,971 12,949 12,758 12,790 12,741 12,766 12,594 12,858 12,805 22 Reserve balances with Federal Reserve Banks' 21,158 20,564r 20,785 21,918 18,958r 20,889 20,576 21,021 19,848 End-of-month figures Wednesday figures July Aug. July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 427,844 408,469 412,374 407,528r 414,670 410,831 411,234 408,872 U.S. government securities 2 3 B H o el u d g h u t n o de u r t r r i e g p h u t— rch S a y s s e t e a m g r a e c e c m o e u n n t t s 37 1 2 6 , , 6 3 4 2 1 4 375,524 0 369 3 , , 8 0 1 5 8 5 373,179 0 368,520 0 372,931 0 372,770 0 374,597 0 372,085 0 Federal agency obligations 4 Bought outright 3,096 3,063 2,941 3,081 3,063 3,063 3,063 3,028 3,028 5 Held under repurchase agreements 461 0 100 0 0 0 0 0 0 6 Acceptances 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 2 3 4 838 3 3,198 4 3 14 9 8 E Se x a te s n on d a e l d c c r r e e d d i i t t 214 0 245 0 266 0 234 0 2480 254 0 243 0 259 0 271 0 10 Float 292 73r 689 527 856r 764 82 694 604 11 Other Federal Reserve assets 34,813 34,666 31,597 34,515 34,837 34,459 34,669 32,651 32,869 12 Gold stock 11,054 11,053 11,053 11,053 11,053 11,053 11,053 11,053 11,053 13 Special drawing rights certificate account 8,018 10,518 10,518 10,518 10,518 10,518 10,518 10,518 10,518 14 Treasury currency outstanding 23,429 23,485 23,555 23,457 23,471 23,485 23,499 23,513 23,527 ABSORBING RESERVE FUNDS 15 Currency in circulation 410,414 409,425 410,857 410,961 410,101 411,133 412,187 411,462 410,214 16 Treasury cash holdings 319 306 316 314 306 309 309 309 311 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 20,977 11,206 4,767 6,002 6,433 7,418 5,681 5,583 5,399 18 Foreign 168 190 166 160 215 196 224 176 201 19 Service-related balances and adjustments ., 4,498 4,427 4,614 4,217 4,403 4,427 4,484 4,521 4,738 20 Other 242 304 298 296 278 272 284 307 278 21 Other Federal Reserve liabilities and capital . 13,519 12,671 11,438 12,517 12,481 12,308 12,652 12,613 12,572 22 Reserve balances with Federal Reserve Banks 20,209 20,102r 21,140 22,936 18,353r 23,663 20,081 21,347 20,256 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 • November 1995 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1992 1993 1994 1995 Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. 1 Reserve balances with Reserve Banks2 25,368 29,374 24,658 21,758 22,649 24,217 21,476 21,058 20,840r 20,565 2 Total vault cash3 34,541 36,818 40,365 39,795 38,518 38,099 39,038 39,839 40,522 40,177 3 Applied vault cash4 31,172 33,484 36,682 35,941 34,934 34,657 35,281 35,986 36,550r 36,254 4 Surplus vault cash5 3,370 3,334 3,683 3,855 3,584 3,442 3,757 3,853 3,971 3,923 5 Total reserves6 56,540 62,858 61,340 57,699 57,583 58,874 56,757 57,044 57,390r 56,819 6 Required reserves 55,385 61,795 60,172 56,752 56,789 58,120 55,877 56,079 56,300 55,834 7 Excess reserve balances at Reserve Banks7 1,155 1,063 1,168 946 794 753 880 964 1,090r 985 8 Total borrowings at Reserve Banks8 124 82 209 59 69 111 150 272 371 282 9 Seasonal borrowings 18 31 100 33 51 82 137 172 231 258 10 Extended credit9 1 0 0 0 0 0 0 0 0 0 Biweekly averages of daily figures for two week periods ending on dates indicated 1995 May 10 May 24 June 7 June 21 July 5 July 19 Aug. 2' Aug. 16 Aug. 30 Sept. 13 1 Reserve balances with Reserve Banks2 21,994 21,406 20,875 21,478 20,546 21,733 19,920 20,793 20,395 21,030 2 Total vault cash3 39,261 38,711 39,373 40,146 39,724 40,411 40,983 40,889 39,324 40,554 3 Applied vault cash4 35,550 34,955 35,549 36,240 35,930 36,491 36,878 36,898 35,491 36,693 4 Surplus vault cash5 3,712 3,756 3,824 3,906 3,794 3,920 4,106 3,991 3,833 3,861 5 Total reserves6 57,543 56,361 56,424 57,718 56,476 58,224 56,798 57,691 55,886 57,722 6 Required reserves 56,508 55,552 55,627 56,703 55,462 57,334 55,443 56,491 55,158 56,873 7 Excess reserve balances at Reserve Banks7 1,035 810 798 1,015 1,014 890 1,354 1,200 728 849 8 Total borrowings at Reserve Banks8 148 144 165 286 336 293 478 250 288 268 9 Seasonal borrowings 124 140 150 155 214 224 245 247 272 245 10 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For cash applied during the maintenance period by "nonbound" institutions (that is, those ordering address, see inside front cover. Data are not break-adjusted or seasonally whose vault cash exceeds their required reserves) to satisfy current reserve requirements. adjusted. 5. Total vault cash (line 2) less applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float and 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash includes other off-balance-sheet "as-of" adjustments. (line 3). 3. Total "lagged" vault cash held by depository institutions subject to reserve 7. Total reserves (line 5) less required reserves (line 6). requirements. Dates refer to the maintenance periods during which the vault cash may be 8. Also includes adjustment credit. used to satisfy reserve requirements. The maintenance period for weekly reporters ends 9. Consists of borrowing at the discount window under the terms and conditions sixteen days after the lagged computation period during which the vault cash is held. established for the extended credit program to help depository institutions deal with Before Nov. 25, 1992, the maintenance period ended thirty days after the lagged sustained liquidity pressures. Because there is not the same need to repay such borrowing computation period. promptly as with traditional short-term adjustment credit, the money market impact of 4. All vault cash held during the lagged computation period by "bound" institutions extended credit is similar to that of nonborrowed reserves. (that is, those whose required reserves exceed their vault cash) plus the amount of vault 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 1995, week ending Monday SSoouurrccee aanndd mmaattuurriittyy July 3 July 10 July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 79,073 84,770 79,652 75,356r 77,305 83,233 79,795 78,638 73,023 2 For all other maturities 17,570 16,851 17,247 17,234 17,803 18,615 18,625 16,553 17,277 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 22,697 25,033 25,851 28,062r 22,029 24,885 26,327 27,244 26,953 4 For all other maturities 26,295 25,048 25,316 26,262 26,409 26,067 26,183 25,979 27,899 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 18,792 18,939 18,263r 18,861r 17,040r 17,837 18,730 21,678 18,956 6 For all other maturities 36,779r 32,797r 32,397r 35,088r 36,946r 36,877 38,159 31,571 36,273 All other customers 7 For one day or under continuing contract 39,780 39,118 38,353r 38,262r 37,810r 38,574 38,416 40,180 40,360 8 For all other maturities 18,344r 17,874r 17,671r 18,155' 18,517r 17,902 18,374 18,401 18,740 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 61,011 61,895 56,693 55,460 56,819 57,530 55,140 57,032 53,380 10 To all other specified customers2 30,224 29,303 29,190 29,475r 29,713 29,600 30,061 27,794 25,921 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.5 (507) weekly statistical release. For banks and official institutions, and U.S. 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 • November 1995 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit' Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 10 O /6 n / 95 Effective date Previous rate 10 O /6 n / 95 Effective date Previous rate 10 O /6 n / 95 Effective date Previous rate Boston 5.25 2/1/95 4.75 5.75 9/28/95 5.75 6.25 9/28/95 6.25 New York 2/1/95 Philadelphia 2/2/95 Cleveland 2/9/95 Richmond 2/1/95 Atlanta 2/2/95 Chicago 2/1/95 St. Louis 2/1/95 Minneapolis 2/2/95 Kansas City 2/1/95 Dallas 2/2/95 San Francisco 5.25 2/1/95 4.75 5.75 9/28/95 5.75 6.25 9/28/95 6.25 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. l A e l v l e F l) . — R. Ba o n f k A le l v l e F l) . — R. B o an f k Effective date l A e l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 1981—Nov. 2 13-14 13 1987—Sept. 4 5.5-6 6 6 13 13 11 6 6 1978—Jan. 9 6-6.5 6.5 Dec. 4 12 12 20 6.5 6.5 1988—Aug. 9 6-6.5 6.5 May 11 6.5-7 7 1982—July 20 11.5-12 11.5 11 6.5 6.5 12 7 7 23 11.5 11.5 July 3 7-7.25 7.25 Aug. 2 11-11.5 11 1989—Feb. 24 6.5-7 7 10 7.25 7.25 3 11 11 27 7 7 Aug. 21 7.75 7.75 16 10.5 10.5 Sept. 22 8 8 27 10-10.5 10 1990—Dec. 19 6.5 6.5 Oct. 16 8-8.5 8.5 30 10 10 20 8.5 8.5 Oct. 12 9.5-10 9.5 1991—Feb. 1 6-6.5 6 Nov. 1 8.5-9.5 9.5 13 9.5 9.5 4 6 6 3 9.5 9.5 Nov. 22 9-9.5 9 Apr. 30 5.5-6 5.5 26 9 9 May 2 5.5 5.5 1979—July 20 10 10 Dec. 14 8.5-9 9 Sept. 13 5-5.5 5 Aug. 17 10-10.5 10.5 15 8.5-9 8.5 17 5 5 20 10.5 10.5 17 8.5 8.5 Nov. 6 4.5-5 4.5 Sept. 19 10.5-11 U 7 4.5 4.5 21 11 11 1984—Apr. 9 8.5-9 9 Dec. 20 3.5-4.5 3.5 Oct. 8 11-12 12 13 9 9 24 3.5 3.5 10 12 12 Nov. 21 8.5-9 8.5 26 8.5 8.5 1992—July 2 3-3.5 3 1980—Feb. 15 12-13 13 Dec. 24 8 8 7 3 3 19 13 13 May 29 12-13 13 1985—May 20 7.5-8 7.5 1994—May 17 3-3.5 3.5 30 12 12 24 7.5 7.5 18 3.5 3.5 June 13 11-12 11 Aug. 16 3.5-4 4 16 11 11 1986—Mar. 7 7-7.5 7 18 4 4 July 28 10-11 10 10 7 7 Nov. 15 4-4.75 4.75 29 10 10 Apr. 21 6.5-7 6.5 17 4.75 4.75 Sept. 26 11 11 23, 6.5 6.5 Nov. 17 12 12 July 11 6 6 1995—Feb. 1 4.75-5.25 5.25 Dec. 5 12-13 13 Aug. 21 5.5-6 5.5 9 5.25 5.25 8 13 13 22 5.5 5.5 1981—May 5 13-14 14 In effect Oct. 6, 1995 5.25 5.25 14 14 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 50 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 elfect 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 deposit Net transaction accounts 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 three may be checks, are savings deposits, not transaction accounts. Banks or vault cash. Nonmember institutions may maintain reserve balances with a The Monetary Control Act of 1980 requires that the amount of transaction accounts Federal Reserve Bank indirectly, on a pass-through basis, with certain approved against which the 3 percent reserve requirement applies be modified annually by 80 institutions. For previous reserve requirements, see earlier editions of the Annual percent of the percentage change in transaction accounts held by all depository institu- Report or the Federal Reserve Bulletin. Under the Monetary Control Act of 1980, tions, determined as of June 30 of each year. Effective Dec. 20, 1994 the amount was depository institutions include commercial banks, mutual savings banks, savings and increased from $51.9 million to $54.0 million. loan associations, credit unions, agencies and branches of foreign banks, and Edge 4. The reserve requirement was reduced from 12 percent to 10 percent on Act corporations. Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that 2. Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts report quarterly. the amount of reservable liabilities subject to a zero percent reserve requirement each year 5. For institutions that report weekly, the reserve requirement on nonpersonal time for the succeeding calendar year by 80 percent of the percentage increase in the total deposits with an original maturity of less than 11/2 years was reduced from 3 percent to reservable liabilities of all depository institutions, measured on an annual basis as of June l'/2 percent for the maintenance period that began Dec. 13, 1990, and to zero for the 30. No corresponding adjustment is to be made in the event of a decrease. On Dec. 20, maintenance period that began Dec. 27, 1990. The reserve requirement on nonpersonal 1994, the exemption was raised from $4.0 million to $4.2 million. The exemption applies time deposits with an original maturity of 1 xh years or more has been zero since Oct. 6, only to accounts that would be subject to a 3 percent reserve requirement. 1983. 3. Transaction accounts include all deposits against which the account holder is For institutions that report quarterly, the reserve requirement on nonpersonal time permitted to make withdrawals by negotiable or transferable instruments, payment orders deposits with an original maturity of less than 1'/> years was reduced from 3 percent to of withdrawal, and telephone and preauthorized transfers in excess of three per month for zero on Jan. 17, 1991. the purpose of making payments to third persons or others. However, money market 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to deposit accounts (MMDAs) and similar accounts subject to the rules that permit no more zero in the same manner and on the same dates as was the reserve requirement on than six preauthorized, automatic, or other transfers per month, of which no more than nonpersonal time deposits with an original maturity of less than 1 '/i years (see note 5). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • November 1995 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1995 TTyyppee ooff ttrraannssaaccttiioonn 11999922 11999933 11999944 aanndd mmaattuurriittyy Jan. Feb. Mar. Apr. May June July U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 14,714 17,717 17,484 0 0 0 0 0 4,470 0 2 Gross sales 1,628 0 0 0 0 0 0 0 0 0 3 Exchanges 308,699 332,229 376,277 30,150 31,530 36,449 30,983 31,663 42,983 25,213 4 Redemptions 1,600 0 0 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 1,096 1,223 1,238 0 0 0 0 0 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 36,662 31,368 0 2,835 5,872 0 0 0 0 0 8 Exchanges -30,543 -36,582 -21,444 -3,167 -4,881 0 0 0 0 0 9 Redemptions 0 0 0 0 0 0 0 0 0 0 One to five years 10 Gross purchases 13,118 10,350 9,168 0 0 0 2,549 0 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shifts -34,478 -27,140 -6,004 -2,145 -5,115 0 0 0 0 0 13 Exchanges 25,811 0 17,801 3,167 3,031 0 0 0 0 0 Five to ten years 14 Gross purchases 2,818 4,168 3,818 0 0 0 839 0 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shifts -1,915 0 -3,145 -690 -757 0 0 0 0 0 17 Exchanges 3,532 0 2,903 0 1,150 0 0 0 0 0 More than ten years 18 Gross purchases 2,333 3,457 3,606 0 0 0 1,138 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -269 0 -918 0 0 0 0 0 0 0 21 Exchanges 1,200 0 775 0 700 0 0 0 0 0 All maturities 22 Gross purchases 34,079 36,915 35,314 0 0 0 4,526 0 4,470 0 23 Gross sales 1,628 0 0 0 0 0 0 0 0 0 24 Redemptions 1,600 767 2,337 621 0 0 370 0 0 0 Matched transactions 25 Gross purchase 1,480,140 1,475,941 1,700,836 163,615 178,877 168,800 148,306 155,027 170,083 166,674 26 Gross sales 1,482,467 1,475,085 1,701,309 164,526 176,232 170,724 147,616 153,534 171,959 163,490 Repurchase agreements 27 Gross purchases 378,374 475,447 309,276 32,201 1,300 22,070 36,314 35,158 40,989 8,527 28 Gross sales 386,257 470,723 311,898 39,756 3,310 16,477 39,157 34,377 28,196 24,851 29 Net change in U.S. Treasury securities 20,642 41,729 29,882 -9,087 634 3,669 2,004 2,274 15,387 -13,141 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 632 774 1,002 91 55 83 20 30 262 333 Repurchase agreements 33 Gross purchases 14,565 35,063 52,696 5,243 25 4,926 4,415 6,155 1,941 711 34 Gross sales 14,486 34,669 52,6% 4,948 1,345 3,821 5,020 5,955 2,180 1,172 35 Net change in federal agency obligations -554 -380 -1,002 204 -1,375 1,022 -625 170 -501 -794 36 Total net change in System Open Market Account... 20,089 41,348 28,880 -8,883 -741 4,691 1,379 2,444 14,886 -13,935 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1995 1995 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 June 30 July 31 Aug. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,053 11,053 11,053 11,053 11,053 11,054 11,053 11,053 2 Special drawing rights certificate account 10,518 10,518 10,518 10,518 10,518 8,018 10,518 10,518 3 360 370 378 380 366 358 372 369 Loans 4 To depository institutions 3,452 246 263 285 343 217 248 269 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 3,063 3,063 3,028 3,028 2,941 3,096 3,063 2,941 8 Held under repurchase agreements 0 0 0 0 0 461 0 100 9 Total U.S. Treasury securities 372,931 372,770 374,597 372,085 373,531 388,965 375,524 372,873 10 Bought outright2 372,931 372,770 374,597 372,085 373,531 372,641 375,524 369,818 11 Bills 182,555 182,394 184,221 181,709 183,154 181,965 185,148 179,441 1? Notes 146,698 146,698 147,804 147,804 147,804 146,998 146,698 147,804 N Bonds 43,679 43,679 42,573 42,573 42,573 43,679 43,679 42,573 14 Held under repurchase agreements 0 0 0 0 0 16,324 0 3,055 15 Total loans and securities 379,446 376,080 377,888 375,398 376,815 392,739 378,835 376,183 16 Items in process of collection 6,560 5,387 6,174 5,005 4,839 4,067 1,867 3,929 17 Bank premises 1,096 1,101 1,103 1,104 1,105 1,090 1,096 1,107 Other assets 18 Denominated in foreign currencies 23,499 23,257 23,271 22,906 22,920 23,961 23,508 21,473 19 All other4 9,944 10,229 8,239 8,482 8,721 9,936 9,875 8,948 20 Total assets 442,476 437,995 438,623 434,847 436,336 451,223 437,124 433,580 LIABILITIES 21 Federal Reserve notes 388,317 389,367 388,636 387,379 388,011 387,661 386,617 387,987 22 Total deposits 36,230 31,148 32,282 30,473 30,920 46,320 36,171 30,316 23 Depository institutions 28,343 24,960 26,217 24,595 24,797 24,946 24,471 25,086 24 U.S. Treasury—General account 7,418 5,681 5,583 5,399 5,653 20,977 11,206 4,767 25 Foreign—Official accounts 196 224 176 201 180 168 190 166 26 Other 272 284 307 278 290 242 304 298 27 Deferred credit items 5,622 4,828 5,092 4,423 4,576 3,723 1,665 3,839 28 Other liabilities and accrued dividends5 4,518 4,468 4,390 4,342 4,606 5,018 4,582 4,697 29 Total liabilities 434,686 429,810 430,400 426,616 428,113 442,723 429,035 426,839 CAPITAL ACCOUNTS 30 Capital paid in 3,861 3,898 3,898 3,904 3,908 3,815 3,861 3,910 31 Surplus 3,683 3,683 3,683 3,683 3,683 3,683 3,683 2,832 32 Other capital accounts 246 603 642 643 632 1,002 544 0 33 Total liabilities and capital accounts 442,476 437,995 438,623 434,847 436,336 451,223 437,124 433,580 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 479,040 478,258 486,717 480,798 478,286 456,421 486,368 479,521 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 469,168 469,060 469,241 469,650 470,304 466,985 469,711 470,405 36 LESS: Held by Federal Reserve Banks 80,851 79,694 80,605 82,272 82,294 79,324 83,094 82,418 37 Federal Reserve notes, net 388,317 389,367 388,636 387,379 388,011 387,661 386,617 387,987 Collateral held against notes, net 38 Gold certificate account 11,053 11,053 11,053 11,053 11,053 11,054 11,053 1111,,005533 39 Special drawing rights certificate account 10,518 10,518 10,518 10,518 10,518 8,018 10,518 10,518 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 366,745 367,796 367,065 365,808 366,440 368,590 365,046 366,417 42 Total collateral 388,317 389,367 388,636 387,379 388,011 387,661 386,617 387,987 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 • November 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 1995 1995 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 June 30 July 31 Aug. 31 1 Total loans 3,452 246 263 285 343 239 248 299 2 Within fifteen days' 3,248 56 174 256 302 163 116 262 3 Sixteen days to ninety days 204 190 88 29 41 75 132 37 4 Total U.S. Treasury securities 372,931 372,770 374,597 372,085 373,531 372,641 375,524 369,818 5 Within fifteen days' 20,782 24,929 20,209 17,391 14,131 6,277 16,480 2,215 6 Sixteen days to ninety days 82,014 77,556 76,724 85,897 86,612 95,686 87,822 86,645 7 Ninety-one days to one year 122,424 122,574 125,948 117,081 121,071 121,467 123,511 129,665 8 One year to five years 84,245 84,246 86,195 86,195 86,195 85,746 84,245 85,770 9 Five years to ten years 28,511 28,511 29,992 29,992 29,992 28,511 28,511 29,992 10 More than ten years 34,955 34,955 35,530 35,530 35,530 34,955 34,955 35,530 11 Total federal agency obligations 3,063 3,063 3,028 3,028 2,941 3,096 3,063 2,941 12 Within fifteen days' 35 35 87 332 265 210 135 265 13 Sixteen days to ninety days 666 790 803 558 658 516 666 658 14 Ninety-one days to one year 823 699 599 599 479 749 723 479 15 One year to five years 1,098 1,098 1,098 1,098 1,098 1,179 1,098 1,098 16 Five years to ten years 417 417 417 417 417 417 417 417 17 More than ten years 25 25 25 25 25 25 25 25 1. Holdings under repurchase agreements are classified as maturing within fifteen days NOTE. Total acceptances data have been deleted from this table because data are no in accordance with maximum maturity of the agreements. longer available. 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 1995 IItteemm D 19 e 9 c 1 . D 19 e 9 c 2 . 1 D 9 e 9 c 3 . D 19 e 9 c 4 . Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 45.54 54.35 60.50 59.34 59.12 58.92 58.55 57.96 57.76 57.35 57.66 57.52 2 Nonborrowed reserves4 45.34 54.23 60.42 59.13 58.99 58.86 58.48 57.85 57.61 57.08 57.28r 57.23 3 Nonborrowed reserves plus extended credit 45.34 54.23 60.42 59.13 58.99 58.86 58.48 57.85 57.61 57.08 57.28r 57.23 4 Required reserves 44.56 53.20 59.44 58.17 57.79 57.97 57.76 57.20 56.88 56.39 56.57 56.53 5 Monetary base6 317.43 351.12 386.60 418.22 421.05 422.31 425.35 428.13 430.69 429.72 429.59 430.76 Not seasonally adjusted 6 Total reserves7 46.98 56.06 62.37 61.13 60.52 57.72 57.62 58.93 56.82 57.13 57.49 56.93 7 Nonborrowed reserves 46.78 55.93 62.29 60.92 60.38 57.66 57.55 58.82 56.68 56.85 57.12 56.65 8 Nonborrowed reserves plus extended credit5 46.78 55.93 62.29 60.92 60.39 57.66 57.55 58.82 56.68 56.85 57.12 56.65 9 Required reserves8 46.00 54.90 61.31 59.96 59.18 56.78 56.83 58.18 55.95 56.16 56.40 55.95 10 Monetary base9 321.07 354.55 390.59 422.51 421.84 419.25 423.27 428.74 429.29 430.23 431.22' 430.98 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 55.53 56.54 62.86 61.34 60.52 57.70 57.58 58.87 56.76 57.04 57.39 56.82 12 Nonborrowed reserves 55.34 56.42 62.78 61.13 60.39 57.64 57.51 58.76 56.61 56.77 57.02 56.54 13 Nonborrowed reserves plus extended credit5 55.34 56.42 62.78 61.13 60.39 57.64 57.51 58.76 56.61 56.77 57.02 56.54 14 Required reserves 54.55 55.39 61.80 60.17 59.18 56.75 56.79 58.12 55.88 56.08 56.30 55.83 15 Monetary base12 333.61 360.90 397.62 427.25 426.31 423.57 427.56 432.79 433.47 434.54 435.49 435.49 16 Excess reserves13 .98 1.16 1.06 1.17 1.34 .95 .79 .75 .88 .96 1.09 .99 17 Borrowings from the Federal Reserve .19 .12 .08 .21 .14 .06 .07 .11 .15 .27 .37 .28 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) 8. To adjust required reserves for discontinuities that are due to regulatory changes in weekly statistical release. Historical data starting in 1959 and estimates of the impact on reserve requirements, a multiplicative procedure is used to estimate what required required reserves of changes in reserve requirements are available from the Money and reserves would have been in past periods had current reserve requirements been in effect. Reserves Projections Section, Division of Monetary Affairs, Board of Governors of the Break-adjusted required reserves include required reserves against transactions deposits Federal Reserve System, Washington, DC 20551. and nonpersonal time and savings deposits (but not reservable nondeposit liabilities). 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regula- 9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), tory changes in reserve requirements. (See also table 1.10) plus (2) the (unadjusted) currency component of the money stock, plus (3) (for all 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault adjusted required reserves (line 4) plus excess reserves (line 16). Cash" and for all those weekly reporters whose vault cash exceeds their required 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally ad- reserves) the break-adjusted difference between current vault cash and the amount applied justed, break-adjusted total reserves (line 1) less total borrowings of depository institu- to satisfy current reserve requirements. tions from the Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabilities, with 5. Extended credit consists of borrowing at the discount window under no adjustments to eliminate the effects of discontinuities associated with regulatory the terms and conditions established for the extended credit program to help depository changes in reserve requirements. institutions deal with sustained liquidity pressures. Because there is not the same need to 11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy repay such borrowing promptly as with traditional short-term adjustment credit, the reserve requirements. money market impact of extended credit is similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) 6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally total reserves (line 11), plus (2) required clearing balances and adjustments to compensate adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency for float at Federal Reserve Banks, plus (3) the currency component of the money stock, component of the money stock, plus (3) (for all quarterly reporters on the "Report of plus (4) (for all quarterly reporters on the "Report of Transaction Accounts, Other Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters Deposits and Vault Cash" and for all those weekly reporters whose vault cash exceeds whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted their required reserves) the difference between current vault cash and the amount applied difference between current vault cash and the amount applied to satisfy current reserve to satisfy current reserve requirements. Since the introduction of contemporaneous reserve requirements. requirements in February 1984, currency and vault cash figures have been measured over 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus the computation periods ending on Mondays. excess reserves (line 16). 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • November 1995 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1995 em 1991 1992 1993 1994 Dec. Dec. Dec. Dec. May June July Aug. Seasonally adjusted Measures2 1 Ml 897.3 1,024.4 1,128.6 1,148.0 1,142.9' 1,143.8 1,144.9' 1,143.6 2 M2 3,457.9 3,515.3 3,583.6 3,616.2 3,659.9' 3,695.7 3,714.3' 3,740.0 3 M3 4,176.0 4,182.9 4,242.3 4,303.4 4,410.2 4,456.7 4,487.4' 4,517.5 4 L 4,989.8r 5,059.3' 5,145.8' 5,269.3' 5,445.3' 5,488.6' 5,544.0 n.a. 5 Debt . . 1 l,179.9r 11,719.6' 12,341.5' 12,959.6' 13,319.2' 13,374.8' 13,408.5 n.a. MI components 6 Currency3 267.4 292.8 322.1 354.5 368.1 367.4 367.1 368.3 7 Travelers checks4 7.7 8.1 7.9 8.4 9.2 9.0 8.9 8.9 8 Demand deposits5 289.5 338.9 383.9 382.2 380.6 386.8 389.5 390.1 9 Other checkable deposits6 332.7 384.6 414.7 402.9 385.0 380.6 379.4' 376.4 Nontransaction components 10 In M27 2,560.6 2,490.9 2,455.0 2,468.2 2,517.0 2,551.9 2,569.4' 2,596.4 11 In M3 only8 718.1 667.6 658.7 687.2 750.3' 761.0 773.0' 777.5 Commercial banks 12 Savings deposits, including MMDAs 665.6 754.7 785.8 752.3 717.2 728.1 730.7 739.8 13 Small time deposits9 602.5 508.1 468.6 502.6 556.2 562.4 566.7 568.8 14 Large time deposits10, " 333.3 286.7 271.2 296.6 315.6 319.1 324.2' 326.8 Thrift institutions 15 Savings deposits, including MMDAs 375.6 428.9 429.8 391.9 364.2' 363.0 360.7 358.8 16 Small time deposits9 464.1 361.1 316.5 317.7 354.5 355.1 355.0 355.2 17 Large time deposits10 83.3 67.1 61.6 64.9 70.4 70.8 72.6 73.2 Money market mutual funds 18 General purpose and broker-dealer 374.2 356.9 360.1 389.0 405.3 425.9 441.5 455.1 19 Institution-only 180.0 200.2 198.1 180.8 194.8 205.6 212.4 210.8 Debt components 20 Federal debt 2,763.6r 3,068.3' 3,328.0 3,497.4 3,577.0 3,602.0 3,614.4 n.a. 21 Nonfederal debt 8,416.3r 8,651.2' 9,013.6' 9,462.2' 9,742.2' 9,772.9' 9,794.2 n.a. Not seasonally adjusted Measures2 22 Ml 916.0 1,046.0 1,153.7 1,173.7 1,132.0' 1,139.2 1,143.9' 1,137.2 23 M2 3,472.7 3,533.6 3,606.1 3,639.7 3,647.6 3,691.2 3,713.8' 3,733.0 24 M3 4,189.4 4,201.4 4,266.1 4,329.4 4,400.0' 4,450.3 4,480.6' 4,511.2 25 L 5,014.2r 5,088.9' 5,180.3' 5,306.8' 5,424.7' 5,476.8' 5,530.3 n.a. 26 Debt 11,176.9' 11,720.2' 12,333.7' 12,951.6' 13,226.8' 13,309.0' 13,353.7 n.a. MI components 27 Currency3 269.9 295.0 324.8 357.6 367.9 368.1 369.0 369.0 28 Travelers checks4 7.4 7.8 7.6 8.1 8.9 9.2 9.5 9.5 29 Demand deposits5 302.4 354.4 401.8 400.3 372.8' 382.6 388.7 386.6 30 Other checkable deposits6 336.3 388.9 419.4 407.6 382.4 379.2 376.8 372.2 Nontransaction components 31 In M27 2,556.6 2,487.7 2,452.5 2,466.1 2,515.5 2,552.0 2,569.8' 2,595.8 32 In M3 only8 ' 716.7 667.7 660.0 689.7 752.4' 759.1 766.9' 778.2 Commercial banks 33 Savings deposits, including MMDAs 664.0 752.9 784.3 751.1 717.8 730.2 732.6 741.2 34 Small time deposits 601.9 507.8 468.2 502.2 555.1 562.0 567.5 569.4 35 Large time deposits10' 11 332.6 286.2 270.8 296.3 318.1 320.6 322.9' 328.2 Thrift institutions 36 Savings deposits, including MMDAs 374.8 427.9 429.0 391.2 364.5' 364.1 361.7' 359.5 37 Small time deposits9 463.7 360.9 316.2 317.4 353.8 354.8 355.4 355.6 38 Large time deposits10 83.1 67.0 61.5 64.8 70.9 71.1 72.3 73.5 Money market mutual funds 39 General purpose and broker-dealer 372.2 355.1 358.3 387.1 407.8 423.6 438.4 451.8 40 Institution-only 180.8 201.7 200.0 183.1 193.8 199.2 206.6 209.3 Repurchase agreements and Eurodollars 41 Overnight and continuing 79.9 83.2 96.5 117.1 116.5 117.3 114.3' 118.4 42 Term 132.7 127.8 143.9 157.9 182.4' 181.5 178.2 180.2 Debt components 43 Federal debt 2,765.0 3,069.8 3,329.5 3,499.0 3,552.6 3,579.3 3,588.8 n.a. 44 Nonfederal debt 8,411.9' 8,650.4' 9,004.2' 9,452.7' 9,674.2' 9,729.7' 9,764.9 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 U.S. Treasury, Federal Reserve Banks, and the vaults of (state and local governments, households and nonprofit organizations, nonfinancial corpodepository 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 U.S. 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 • November 1995 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks' 1995 1992 1993 1994 IItteemm Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June Julyr Aug. Interest rates (annual effective yields)2 INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts 2.33 1.86 1.96 1.98 2.01 2.00 1.95 1.96 1.94 1.91 1.90 2 Savings deposits' 2.88 2.46 2.91 2.98 3.09 3.14 3.17 3.20 3.19 3.15 3.14 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 2.90 2.65 3.81 3.96 4.19 4.24 4.28 4.25 4.19 4.17 4.10 4 92 to 182 days 3.16 2.91 4.44 4.67 4.83 4.97 4.94 4.93 4.81 4.77 4.77 5 183 days to 1 year 3.37 3.13 5.12 5.39 5.57 5.60 5.60 5.49 5.27 5.18 5.15 6 More than 1 year to 2lA years 3.88 3.55 5.74 6.00 6.12 6.12 6.05 5.83 5.53 5.38 5.39 7 More than 2 VI years 4.77 4.29 6.30 6.47 6.52 6.45 6.37 6.11 5.79 5.62 5.63 BIF-INSURED SAVINGS BANKS4 8 Negotiable order of withdrawal accounts 2.45 1.87 1.95 1.99 2.04 1.99 1.99 2.00 1.98 1.96 1.98 9 Savings deposits3 3.20 2.63 2.88 2.91 2.95 2.94 2.93 2.95 2.97 2.97 2.95 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 3.13 2.70 3.80 3.98 4.17 4.21 4.18 4.24 4.24 4.28 4.34 11 92 to 182 days 3.44 3.02 4.89 5.13 5.33 5.37 5.38 5.31 5.22 5.16 5.12 12 183 days to 1 year 3.61 3.31 5.52 5.75 5.94 5.94 5.87 5.83 5.61 5.47 5.45 13 More than 1 year to 2V5 years 4.02 3.66 6.09 6.29 6.37 6.32 6.25 6.08 5.78 5.62 5.63 14 More than 2Vl years 5.00 4.62 6.43 6.68 6.75 6.68 6.59 6.32 5.98 5.82 5.78 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts 286,541 305,223 303,724 291,355 290,188 292,811 286,987 274,281 274,573 271,777 265,597 16 Savings deposits3 738,253 766,413 734,519 723,295 714,955 713,440 698,963 714,989 718,393 723,302 731,457 17 Personal 578,757 597,838 578,459 569,619 564,877 564,086 550,674 560,563 563,795 567,624 571,723 18 Nonpersonal 159,496 168,575 156,060 153,676 150,078 149,354 148,289 154,426 154,599 155,678 159,734 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 38,474 29,455 32,375 32,154 31,777 31,623 31,530 31,472 32,140 32,950 30,627 20 92 to 182 days 127,831 110,069 95,901 96,895 98,248 95,583 94,368 93,188 91,999 91,347 90,221 21 183 days to 1 year 163,098 146,565 161,831 163,939 169,103 176,657 179,625 184,560 187,185 186,716 187,122 22 More than 1 year to 2'A years 152,977 141,223 162,486 168,515 176,877 183,275 189,652 194,963 198,541 201,761 203,495 23 More than 2 Vi years 169,708 181,528 190,897 190,215 191,383 194,722 194,426 192,542 195,024 194,500 200,031 24 IRA and Keogh plan deposits 147,350 143,985 143,428 143,900 145,040 145,959 146,679 146,842 148,894 148,878 149,045 BIF-INSURED SAVINGS BANKS4 25 Negotiable order of withdrawal accounts 10,871 11,151 11,317 11,127 10,950 11,218 11,005 11,019 11,354 11,262 11,113 26 Savings deposits3 81,786 80,115 70,642 71,639 69,982 68,595 67,453 67,322 67,185 66,706 66,768 27 Personal 78,695 77,035 67,673 68,760 67,144 65,692 64,204 64,484 63,966 63,524 63,476 28 Nonpersonal 3,091 3,079 2,969 2,878 2,837 2,902 3,248 2,838 3,219 3,182 3,292 Interest-hearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 3,867 2,793 2,166 2,041 2,086 1,943 1,780 1,885 1,567 1,784 1,872 30 92 to 182 days 17,345 12,946 11,793 12,084 11,953 11,707 11,245 11,449 11,025 11,131 11,181 31 183 days to 1 year 21,780 17,426 18,753 19,336 19,979 20,277 21,051 20,956 21,702 22,157 22,485 32 More than 1 year to 2 '/2 years 18,442 16,546 17,842 20,460 21,870 22,648 23,445 24,014 24,658 25,141 25,294 33 More than 2 Vi years 18,845 20,464 21,600 21,888 22,275 22,446 22,671 22,819 22,935 22,930 22,777 34 IRA and Keogh plan accounts 21,713 19,356 19,325 19,802 20,099 20,221 20,388 20,236 20,499 20,568 20,604 1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6 (508) 2. As of October 31, 1994, interest rate data for NOW accounts and savings deposits Special Supplementary Table monthly statistical release. For ordering address, see inside reflect a series break caused by a change in the survey used to collect these data. front cover. Estimates are based on data collected by the Federal Reserve System from a 3. Includes personal and nonpersonal money market deposits. stratified random sample of about 425 commercial banks and 75 savings banks on the last 4. Includes both mutual and federal savings banks. day of each month. Data are not seasonally adjusted and include IRA and Keogh deposits and foreign currency-denominated deposits. Data exclude retail repurchase agreements and deposits held in U.S. branches and agencies of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A17 1.23 BANK DEBITS AND DEPOSIT TURNOVER1 Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates 1995 BBaannkk ggrroouupp,, oorr ttyyppee ooff ddeeppoossiitt Jan. Feb. Mar. Apr. May' June DEBITS Seasonally adjusted Demand deposits3 1 All insured banks 313,128.1 334,784.1 369,029.1 369,873.6r 384,140.0' 393,325.2' 362,527.2' 418,140.7 408,037.0 2 Major New York City banks 165,447.7 171,224.3 191,168.8 183,454.5 195,129.3 197,666.4 185,751.6 217,464.9 203,338.6 3 Other banks 147,680.4 163,559.7 177,860.3 186,419.2r 189,010.7' 195,658.8' 176,775.6' 200,675.8 204,698.4 4 Other checkable deposits4 3,780.3 3,481.5 3,798.6 4,017.2 3,918.2 4,044.4 3,666.2' 4,167.8 3,964.7 5 Savings deposits (including MMDAs)5 3,309.1 3,497.4 3,766.3 3,922.6r 3,989.8 3,889.3 3,565.7 4,022.0 4,408.5 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 825.9 785.9 817.4 821.6r 857.2' 880.4 807.4 934.4 896.7 7 Major New York City banks 4,795.3 4,198.1 4,481.5 4,359.9' 4,675.9' 4,754.1 4,551.2 5,168.0 4,780.3 8 Other banks 428.7 424.6 435.1 456.8 465.1 482.9 433.1 495.0 496.2 9 Other checkable deposits4 14.4 11.9 12.6 13.6 13.4 13.9 12.6 14.7 14.3 10 Savings deposits (including MMDAs)5 4.7 4.6 4.9 5.4 5.5 5.4 5.0 5.6 6.1 DEBITS Not seasonally adjusted Demand deposits3 11 All insured banks 313,344.9 334,899.2 369,121.8 368,835.7' 355,792.9' 412,196.9' 357,561.2' 407,765.3 420,396.4 12 Major New York City banks 165,595.0 171,283.5 191,226.1 181,602.7 181,697.8 209,255.5 180,169.1 207,259.8 209,349.5 13 Other banks 147,749.9 163,615.7 177,895.7 187,233.0' 174,095.1' 202,941.4' 177,392.1' 200,505.5 211,046.9 14 Other checkable deposits4 3,783.6 3,481.7 3,795.6 4,361.7 3,609.9 4,083.5 3,874.2' 4,004.2 4,078.9 15 Savings deposits (including MMDAs)5 3,310.0 3,498.3 3,764.4 4,100.6 3,611.3 3,989.3 3,727.1 3,981.9 4,516.3 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 826.1 786.1 818.2 802.4' 812.4' 946.3' 796.3' 927.6 936.0 17 Major New York City banks 4,803.5 4,197.9 4,490.3 4,148.3' 4,347.5r 5,145.1 4,459.5 5,095.1 5,037.0 18 Other banks 428.8 424.8 435.3 450.2 439.5 513.9 434.1 502.6 517.8 19 Other checkable deposits4 14.4 11.9 12.6 14.5 12.3 14.0 13.0 14.3 14.8 20 Savings deposits (including MMDAs)5 4.7 4.6 4.9 5.6 5.0 5.6 5.2 5.6 6.2 1. Historical tables containing revised data for earlier periods can be obtained from the 4. As of January 1994, other checkable deposits (OCDs), previously defined as Publications Section, Division of Support Services, Board of Governors of the Federal automatic transfer to demand deposits (ATSs) and negotiable order of withdrawal (NOW) Reserve System, Washington, DC 20551. accounts, were expanded to include telephone and preauthorized transfer accounts. This Data in this table also appear in the Board's G.6 (406) monthly statistical release. For change redefined OCDs for debits data to be consistent with OCDs for deposits data. ordering address, see inside front cover. 5. Money market deposit accounts. 2. Annual averages of monthly figures. 3. Represents accounts of individuals, partnerships, and corporations and of states and political subdivisions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • November 1995 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Billions of dollars Monthly averages Wednesday figures Account 1994 1995r 1995 Aug. Feb. Mar. Apr. May June July Aug. Aug. 9 Aug. 16 Aug. 23 Aug. 30 ALL COMMERCIAL Seasonally adjusted BANKING INSTITUTIONS Assets 1 Bank credit 3,269.0 3,363.0 3,388.3 3,455.0 3,480.9 3,494.9 3,504.2 3,519.6 3,519.3 3,512.3 3,525.1 3,524.1 2 Securities in bank credit 969.8 937.1 941.9 985.1 981.6 980.2 968.8 975.6 969.8 976.6 980.6 979.5 3 U.S. government securities 746.1 717.2 705.2 704.2 706.9 705.7 698.0 702.0 699.9 700.4 705.8 703.8 4 Other securities 223.6 219.9 236.7 281.0 274.7 274.4 270.8 273.6 269.9 276.1 274.7 275.8 5 Loans and leases in bank credit2 .. . 2,299.2 2,425.9 2,446.3 2,469.9 2,499.3 2,514.7 2,535.4 2,544.0 2,549.5 2,535.7 2,544.5 2,544.6 6 Commercial and industrial 623.5 668.9 672.0 678.3 686.4 688.9 692.9 694.7 695.5 694.1 694.7 693.8 7 Real estate 973.2 1,022.6 1,028.2 1,035.4 1,039.6 1,046.9 1,056.6 1,061.8 1,060.5 1,060.7 1,063.3 1,063.5 8 Revolving home equity 74.0r 76.5 76.8 77.5 78.2 78.8 79.3 79.0 79.1 79.1 78.9 79.1 9 Other 899.2r 946.0 951.4 957.9 961.4 968.1 977.3 982.8 981.4 981.6 984.4 984.3 10 Consumer 429.3 459.8 465.4 471.4 473.2 478.5 481.7 487.3 484.9 486.2 488.7 490.2 11 Security3 75.0 67.8 69.7 72.8 84.1 84.9 83.0 79.0 84.1 77.8 76.3 77.0 12 Other 198.2 207.0 211.1 212.0 216.0 215.6 221.2 221.1 224.5 216.9 221.6 220.2 13 Interbank loans4 160.7 177.8 180.2 178.4 183.6 187.5 194.8 191.9 193.0 190.4 189.5 192.1 14 Cash assets5 205.8 215.9 206.9 207.9 210.2 211.2 213.1 207.7 210.7 207.9 212.5 198.0 15 Other assets6 225.6 242.3 241.6 214.5 214.5 214.8 222.3 222.1 220.6 223.1 223.8 220.5 16 Total assets7 3,804.0' 3,942.7 3,960.5 3,9983 4,0323 4,051.0 4,077.0 4,084.1 4,086.4 4,076.5 4,093.7 4,077.6 Liabilities 17 Deposits 2,517.4 2,547.2 2,548.2 2,556.1 2,570.2 2,589.5 2,613.4 2,619.8 2,621.1 2,620.9 2,627.9 2,607.7 18 Transaction 809.1 804.6 795.2 791.0 788.2 784.8 796.8 788.4 793.6 790.0 795.5 773.5 19 Nontransaction 1,708.3 1,742.6 1,753.0 1,765.1 1,782.0 1,804.7 1,816.6 1,831.5 1,827.5 1,830.9 1,832.4 1,834.1 20 Large time 342.0 374.2 380.8 386.7 390.6 393.3 398.1 404.5 402.0 401.4 406.5 407.1 21 Other 1,366.3 1,368.5 1,372.2 1,378.4 1,391.4 1,411.3 1,418.5 1,427.0 1,425.5 1,429.5 1,425.9 1,427.0 22 Borrowings 577.5' 643.6 648.6 672.9 678.2 665.8 682.4 663.7 668.0 651.8 667.9 660.9 23 From banks in the U.S 158.6 178.5 182.0 181.2 183.2 184.8 197.9 193.2 191.4 192.4 191.0 194.7 24 From nonbanks in the U.S 418.9' 465.1 466.6 491.7 495.1 481.0 484.5 470.5 476.6 459.4 477.0 466.2 25 Net due to related foreign offices 206.6 252.7 241.2 234.8 239.5 245.2 236.8 248.6 247.0 254.7 251.0 246.9 26 Other liabilities8 179.6 178.7 196.0 209.2 206.5 205.6 196.1 199.2 197.0 198.1 200.7 201.9 27 Total liabilities 3,481.0 3,622.2 3,634.0 3,673.0 3,694.5 3,706.1 3,728.7 3,731-3 3,733.2 3,725.5 3,747.6 3,717.4 28 Residual (assets less liabilities)9 323.1 320.4 326.6 325.8 337.7 344.9 348.3 352.8 353.2 351.0 346.1 360.2 Not seasonally adjusted Assets 29 Bank credit 3,262.5 3,358.9 3,388.7 3,456.1 3,472.8 3,491.8 3,491.7 3,510.2 3,507.9 3,507.5 3,508.4 3,517.0 30 Securities in bank credit 968.3 935.8 949.7 991.7 983.3 981.0 964.4 973.2 966.5 975.4 975.4 978.1 31 U.S. government securities 747.3 712.9 710.2 708.5 706.1 705.5 694.2 702.9 700.8 702.2 706.0 704.4 32 Other securities 220.9 223.0 239.5 283.2 277.2 275.5 270.1 270.3 265.7 273.3 269.4 273.7 33 Loans and leases in bank credit2 .. . 2,294.2 2,423.0 2,439.0 2,464.4 2,489.5 2,510.9 2,527.3 2,537.0 2,541.3 2,532.1 2,533.0 2,538.9 34 Commercial and industrial 620.5 667.5 675.2 682.8 689.5 690.8 692.2 691.3 693.8 692.4 689.5 688.5 35 Real estate 972.8 1,018.7 1,023.3 1,031.2 1,037.9 1,046.6 1,055.9 1,061.1 1,060.0 1,060.5 1,061.4 1,063.0 36 Revolving home equity 74.1' 76.2 76.1 76.9 78.1 78.8 79.3 79.2 79.0 79.2 79.1 79.4 37 Other 898.6' 942.5 947.2 954.3 959.9 967.8 976.7 981.9 981.0 981.2 982.3 983.6 38 Consumer 428.9 461.0 461.9 468.2 471.7 475.8 479.4 486.9 482.7 485.6 488.7 491.4 39 Security3 72.6 71.0 70.9 73.6 78.5 81.1 78.1 76.1 80.7 75.3 72.6 74.8 40 Other 199.4 204.9 207.7 208.6 211.8 216.4 221.7 221.5 224.1 218.3 220.7 221.1 41 Interbank loans4 156.8 179.9 178.4 178.0 178.3 184.6 190.8 187.1 186.6 188.4 179.6 189.1 42 Cash assets5 198.3 212.6 201.3 204.2 207.7 209.3 210.0 200.1 196.6 203.4 194.8 197.9 43 Other assets6 227.2 240.1 236.9 210.9 213.8 213.4 221.8 223.9 223.8 224.2 222.7 223.8 44 Total assets7 3,787.8' 3,934.8 3,948.6 3,992.5 4,015.5 4,041.9 4,0573 4,064.0 4,057.7 4,066.1 4,0483 4,070.7 Liabilities 45 Deposits 2,503.2 2,537.9 2,538.5 2,559.1 2,561.2 2,586.7 2,604.2 2,605.7 2,607.3 2,617.5 2,587.3 2,597.2 46 Transaction 792.8 795.7 783.1 795.9 777.0 779.2 787.5 772.3 774.4 784.1 754.1 764.2 47 Nontransaction 1,710.5 1,742.2 1,755.4 1,763.2 1,784.2 1,807.5 1,816.7 1,833.4 1,832.9 1,833.4 11,,883333..22 1,833.0 48 Large time 342.7 374.4 382.0 385.3 394.9 395.8 397.5 405.2 402.7 401.5 440088..11 407.7 49 Other 1,367.8 1,367.8 1,373.4 1,377.9 1,389.3 1,411.7 1,419.2 1,428.3 1,430.2 1,431.9 1,425.0 1,425.3 50 Borrowings 584.6 639.7 637.8 655.3 664.5 672.3 681.1 670.7 672.5 665.3 669.2 669.0 51 From banks in the U.S 156.6 179.8 178.3 177.7 178.0 184.5 194.2 191.1 190.5 192.3 183.6 193.1 52 From nonbanks in the U.S 428.0 459.9 459.5 477.6 486.5 487.7 486.9 479.7 481.9 473.0 485.7 475.9 53 Net due to related foreign offices 202.0 249.7 245.1 237.3 245.5 239.4 234.3 243.6 236.4 241.2 248.2 255.0 54 Other liabilities8 178.7' 179.4 195.1 204.3 204.7 201.1 193.5 198.5 196.1 197.3 198.8 202.6 55 Total liabilities 3,468.5 3,606.7 3,616.5 3,656.0 3,676.0 3,6993 3,713.0 3,718.5 3,712.2 3,7213 3,703.4 3,723.8 56 Residual (assets less liabilities)9 319.3 328.1 332.2 336.5 339.6 342.6 344.3 345.5 345.4 344.9 344.9 346.8 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A19 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS'—Continued Billions of dollars Monthly averages Wednesday figures Account 1994 1995' 1995 Aug. Feb. Mar. Apr. May June July Aug. Aug. 9 Aug. 16 Aug. 23 Aug. 30 DOMESTICALLY CHARTERED Seasonally adjusted COMMERCIAL BANKS Assets 57 22,,991188..33 3,001.1 3,020.6 3,053.7 3,075.7 3,090.6 3,100.3 3,113.5 3,113.4 3,108.2 3,119.4 3,115.7 58 Securities in bank credit 888866..33 848.5 852.4 861.9 858.8 856.4 847.0 850.0 847.3 848.7 854.6 851.5 5Q U.S. government securities 686.8 657.2 646.9 643.8 644.7 644.0 638.3 639.9 639.0 638.4 643.2 639.7 fin Other securities 199.5 191.3 205.5 218.1 214.1 212.4 208.7 210.0 208.2 210.3 211.4 211.7 61 Loans and leases in bank credit2 2,032.0 2,152.7 2,168.2 2,191.8 2,216.9 2,234.1 2,253.3 2,263.6 2,266.2 2,259.5 2,264.8 2,264.2 fi? Commercial and industrial 465.5 499.3 502.6 510.7 516.7 519.0 523.5 524.5 525.6 524.4 524.3 523.3 63 Real estate 930.6 982.5 988.6 997.2 1,002.1 1,009.7 1,020.2 1,026.4 1,024.7 1,025.2 1,028.0 1,028.4 64 Revolving home equity 74.0r 76.5 76.8 77.5 78.2 78.8 79.2 79.0 79.1 79.1 78.9 79.1 65 Other 856.6' 906.0 911.9 919.7 923.8 930.9 940.9 947.4 945.7 946.1 949.0 949.3 66 Consumer 429.3 459.8 465.4 471.4 473.2 478.5 481.7 487.3 484.9 486.2 488.7 490.2 67 Security3 47.0 46.5 45.9 45.4 54.0 55.5 52.2 50.4 53.4 50.2 48.8 49.3 fi8 Other 159.6 164.6 165.7 167.0 170.9 171.5 175.8 174.9 177.5 173.5 175.0 173.0 69 Interbank loans4 136.1 155.1 156.4 157.2 160.2 164.8 172.7 165.7 167.3 164.8 163.1 164.2 70 Cash assets5 181.2 190.2 180.9 181.2 181.5 183.5 186.4 181.6 184.7 181.9 186.2 171.5 71 Other assets6 170.9 173.3 167.8 165.0 163.8 164.7 167.8 167.4 167.2 168.7 168.4 165.0 72 Total assets7 3,349.5' 3,4633 3,4693 3,500.2 3,524.2 3,546.4 3,569.8 3,571.1 3,575.5 3,566.4 3,580.0 3,559.4 Liabilities 73 Deposits 2,372.5 2,395.9 2,394.1 2,396.7 2,407.4 2,422.5 2,444.6 2,445.7 2,448.5 2,449.0 2,453.6 22,,443300..88 74 Transaction. 799.1 794.3 784.6 780.7 778.1 774.6 786.4 778.0 783.6 779.9 785.3 762.3 75 Nontransaction 1,573.5 1,601.5 1,609.6 1,616.0 1,629.3 1,647.8 1,658.1 1,667.6 1,664.8 1,669.1 1,668.2 1,668.5 76 Large time 210.6 236.0 240.8 242.5 244.8 244.9 245.1 246.0 244.8 246.9 245.7 246.5 77 Other 1,362.8 1,365.5 1,368.8 1,373.6 1,384.5 1,402.9 1,413.1 1,421.6 1,420.1 1,422.2 1,422.5 1,422.0 78 Borrowings 471.2r 540.3 537.8 561.1 566.0 560.2 571.3 555.0 557.7 547.1 559.0 551.0 79 From banks in the U.S 140.8 161.5 164.4 162.3 163.0 167.7 180.5 177.1 173.2 177.9 174.8 180.0 80 From nonbanks in the U.S 330.4r 378.8 373.4 398.8 403.1 392.5 390.9 377.9 384.5 369.2 384.2 371.0 81 Net due to related foreign offices .... 53.2 87.8 84.8 81.8 83.4 90.2 82.1 91.0 89.7 91.7 93.3 94.1 82 Other liabilities8 133.7r 121.1 131.6 143.2 139.5 138.6 130.9 131.6 131.7 129.3 133.1 132.8 83 Total liabilities 3,030.6 3,145.1 3,1483 3,182.8 3,196.4 3,211.5 3,228.9 3,223.4 3,227.6 3,217.0 3,239.0 3,208.7 84 Residual (assets less liabilities)9 319.0 318.2 321.0 317.3 327.8 334.9 340.9 347.7 347.9 349.4 341.0 350.7 Not seasonally adjusted Assets 8855 22,,991122..66rr 2,996.5 3,019.9 3,058.0 3,074.2 3,091.5 3,090.7 3,105.5 3,103.2 3,102.8 33,,110044..77 33,,111111..11 8866 Securities in bank credit 888855..11 847.6 859.2 869.8 861.2 859.5 843.4 847.8 844.0 847.0 850.2 851.0 87 U.S. government securities 688.3 654.1 651.3 649.1 645.5 644.9 635.3 641.1 640.2 639.6 643.6 641.5 88 Other securities 196.8 193.6 207.9 220.6 215.7 214.6 208.0 206.7 203.8 207.3 206.6 209.4 89 Loans and leases in bank credit2 2,027.5r 2,148.9 2,160.7 2,188.2 2,213.0 2,232.0 2,247.3 2,257.7 2,259.2 2,255.8 2,254.5 2,260.2 90 Commercial and industrial 462.2 498.8 505.4 515.1 520.5 520.9 522.3 520.7 523.0 521.2 519.0 518.4 91 Real estate 929.9r 978.5 983.7 993.3 1,000.5 1,009.5 1,019.6 1,025.5 1,024.2 1,024.9 1,025.9 1,027.7 92 Revolving home equity 74. lr 76.2 76.1 76.9 78.1 78.8 79.3 79.2 79.0 79.2 79.1 79.4 93 Other 855.8r 902.3 907.6 916.4 922.4 930.6 940.4 946.3 945.2 945.7 946.8 948.3 94 Consumer 428.9 461.0 461.9 468.2 471.7 475.8 479.4 486.9 482.7 485.6 488.7 491.4 95 Security3 46.1 47.8 46.6 46.8 51.9 54.3 50.1 49.4 52.0 49.4 46.7 48.8 96 Other 160.4 162.8 163.2 164.8 168.3 171.5 175.9 175.3 177.3 174.7 174.2 173.8 97 Interbank loans4 133.3 158.1 155.9 157.0 155.3 163.2 168.4 162.0 163.5 165.3 154.7 159.4 98 Cash assets5 173.0 187.8 175.8 178.3 180.3 181.1 183.1 173.3 170.2 176.5 167.7 170.8 99 Other assets6 171.8 171.1 164.8 162.7 163.1 164.1 168.2 168.3 168.9 169.0 166.6 167.7 100 Total assets7 3,333.8 3,456.9 3,459.8 3,4993 3,515.8 3,542.7 3,553.4 3,552.1 3,548.6 3,556.4 3,536.7 3,551.9 Liabilities 101 Deposits 2,358.8 2,385.9 2,382.5 2,400.9 2,396.4 2,416.6 2,435.6 2,432.0 2,435.4 2,446.1 2,412.7 2,420.9 10? Transaction 782.9 785.5 772.8 786.0 767.4 769.1 777.1 762.1 764.6 774.0 744.3 753.0 103 Nontransaction 1,575.9 1,600.4 1,609.7 1,614.9 1,629.0 1,647.5 1,658.5 1,669.9 1,670.8 1,672.1 1,668.4 1,668.0 104 Large time 212.2 236.2 239.6 241.8 246.4 244.5 245.1 247.8 246.9 248.4 247.8 248.2 105 Other 1,363.7 1,364.2 1,370.0 1,373.2 1,382.6 1,402.9 1,413.4 1,422.1 1,423.9 1,423.7 1,420.6 1,419.8 106 Borrowings 476.3 538.8 528.7 543.6 556.6 564.9 567.6 560.1 558.5 557.9 558.8 559.5 107 From banks in the U.S 138.9 163.2 160.7 159.9 159.7 167.4 176.5 175.2 172.7 177.5 168.4 178.4 108 From nonbanks in the U.S 337.4 375.6 368.0 383.7 396.9 397.6 391.1 384.9 385.8 380.5 390.4 381.1 109 Net due to related foreign offices .... 51.9 88.5 89.7 84.1 91.8 89.6 81.7 89.1 84.6 84.6 94.2 96.8 110 Other liabilities8 132.6 120.8 132.0 140.1 137.5 134.9 129.9 130.5 129.8 128.0 131.3 133.0 111 Total liabilities 3,019.6 3,134.1 3,132.9 3,168.7 3,182.2 3,206.1 3,214.8 3,211.7 3,2083 3,216.6 3,197.0 3,210.2 112 Residual (assets less liabilities)9 314.2 322.8 326.9 330.5 333.7 336.6 338.6 340.4 340.3 339.7 339.7 341.7 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • November 1995 NOTES TO TABLE 1.26 1. Covers the following types of institutions in the fifty states and the District of 4. Consists of federal funds sold to, reverse repurchase agreements with, and loans to Columbia: domestically chartered commercial banks that submit a weekly report of commercial banks in the United States. condition (large domestic); other domestically chartered commercial banks (small domes- 5. Includes vault cash, cash items in process of collection, demand balances due from tic); branches and agencies of foreign banks; New York State investment companies, and depository institutions in the United States, balances due from Federal Reserve Banks, Edge Act and agreement corporations (foreign-related institutions). Excludes interna- and other cash assets. tional banking facilities. Data are Wednesday values, or pro rata averages of Wednesday 6. Excludes the due-from position with related foreign offices, which is included in values. Large domestic banks constitute a universe; data for small domestic banks and lines 25, 53, 81, and 109. foreign-related institutions are estimates based on weekly samples and on quarter-end 7. Excludes unearned income, reserves for losses on loans and leases, and reserves for condition reports. Data are adjusted for breaks caused by reclassifications of assets and transfer risk. Loans are reported gross of these items. liabilities. 8. Excludes the due-to position with related foreign offices, which is included in lines 2. Excludes federal funds sold to, reverse repurchase agreements with, and loans to 25, 53, 81, and 109. commercial banks in the United States. 9. This balancing item is not intended as a measure of equity capital for use in capital 3. Consists of reserve repurchase agreements with broker-dealers and loans to pur- adequacy analysis. chase and carry securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1995 AAccccoouunntt July 5 July 12 July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 ASSETS 1 Cash and balances due from depository institutions 133,214r 109,875r 107,719r 109,150r 115,646 104,701 108,438 103,019 102,961 2 U.S. Treasury and government securities 295,224 292,889 292,969 293,094 296,110 298,123 297,369 300,076 297,480 Trading account 17,937 17,817 17,755 17,243 20,549 21,793 19,296 20,070 18,970 4 Investment account 277,287 275,073 275,214 275,851 275,561 276,330 278,073 280,007 278,510 5 Mortgage-backed securities' 98,310 98,116 97,145r 98,06 lr 99,016 99,020 100,420 101,816 102,167 All others, by maturity 6 One year or less 45,268 44,089 44,615 44,866 44,834 44,808 44,555 44,115 44,201 7 One year through five years 72,762 72,574 72,965r 72,559r 71,671 72,606 73,576 74,511 72,950 8 More than five years 60,948 60,294 60,488 60,365 60,041 59,896 59,523 59,564 59,192 9 Other securities 127,747 123,951 124,374 122,803 120,869 119,751 123,003 122,471 124,709 10 Trading account 2,192 1,448 1,329 1,466 1,532 1,465 1,635 1,698 1,600 11 Investment account 62,421 62,486 61,691 61,741 62,357 62,490 62,619 62,904 62,690 12 State and local government, by maturity 19,825 19,863 19,788 19,842 19,718 19,688 19,950 19,970 20,065 N One year or less 4,972 5,037 5,061 5,122 5,072 5,077 5,106 5,107 5,215 14 More than one year 14,854 14,825 14,728 14,719 14,646 14,611 14,844 14,862 14,850 15 Other bonds, corporate stocks, and securities 42,595 42,623 41,903 41,899 42,639 42,801 42,669 42,934 42,625 16 Other trading account assets 63,135 60,017 61,353 59,596 56,981 55,796 58,748 57,869 60,419 17 Federal funds sold2 116,347 102,357 106,370 100,381 112,113 101,260 102,327 92,357 98,693 18 To commercial banks in the United States 83,128 64,684 69,256 66,377 75,898 63,707 68,325 61,257 66,042 19 To nonbank brokers and dealers in securities 27,282 31,483 30,816 28,095 30,104 31,402 28,777 26,182 27,503 ?0 To others3 5,937 6,190 6,299 5,909 6,112 6,152 5,226 4,918 5,147 21 Other loans and leases, gross 1,242,896 1,236,559 1,236,265 1,236,810 1,244,874 1,243,132 1,241,618 1,244,203 1,247,173 n Commercial and industrial 346,328 342,909 343,215 341,875 345,686 344,104 342,262 340,441 339,990 21 Bankers acceptances and commercial paper 1,527 1,565 1,560 1,504 1,528 1,525 1,548 1,482 1,522 ?4 All other 344,802 341,344 341,655 340,371 344,159 342,579 340,714 338,959 338,468 ?5 U.S. addressees 342,224 338,715 338,955 337,692 341,430 339,818 338,134 336,367 335,962 ?6 Non-U.S. addressees 2,578 2,629 2,700 2,679 2,728 2,761 2,580 2,591 2,506 77 Real estate loans 489,384 491,531 491,594 491,116 491,850 493,941 493,573 494,654 495,386 78 Revolving, home equity 49,005 48,993 49,026 49,072 48,145 48,432 48,515 48,507 48,548 79 All other 440,379 442,538 442,568 442,044 443,704 445,509 445,058 446,147 446,837 30 To individuals for personal expenditures 245,272 242,300 243,718 244,886 245,060 245,029 246,723 248,761 250,583 31 To depository and financial institutions 62,754 66,254r 63,788r 63,834r 66,312 65,295 64,078 64,489 66,053 3? Commercial banks in the United States 39,633 42,515 41,685 41,690 42,520 41,219 41,032 41,713 42,539 33 Banks in foreign countries 3,806 4,265 2,721 2,787 3,246 3,575 3,032 2,715 2,858 34 Nonbank depository and other financial institutions 19,315 19,475r 19,382' 19,357r 20,546 20,501 20,014 20,062 20,656 35 For purchasing and carrying securities 15,804 14,414 14,166 15,009 14,627 14,745 14,953 15,108 15,896 36 To finance agricultural production 6,622 6,689 6,665 6,669 6,691 6,740 6,718 6,720 6,740 37 To states and political subdivisions 11,115 11,063 11,073 11,149 10,970 10,972 11,014 11,015 10,991 38 To foreign governments and official institutions 897 895 923 1,069 1,295 1,329 1,052 1,078 1,086 39 All other loans4 29,642 25,033r 25,710r 25,684r 26,625 24,985 25,214 25,728 24,150 40 Lease-financing receivables 35,079 35,471 35,412 35,517 35,757 35,992 36,031 36,208 36,298 41 LESS: Unearned income 1,686 1,678 1,673 1,642 1,623 1,643 1,638 1,679 1,646 4? Loan and lease reserve5 34,267 34,209 34,211 34,149 34,156 34,322 34,319 34,204 34,185 43 Other loans and leases, net 1,206,942 1,200,672 1,200,381 1,201,018 1,209,095 1,207,167 1,205,660 1,208,319 1,211,342 44 All other assets 138,842 137,713 136,670 136,100r 138,873 138,285 138,633 135,285 135,193 45 Total assets6 2,018,316r l,967,458r l,968,483r l,962,546r 1,992,706 1,969,287 1,975,430 1,961,526 1,970,377 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • November 1995 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1995 AAccccoouunntt July 5 July 12 July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 LIABILITIES 46 Deposits l,218,893r l,176,091r l,164,391r l,164,626r 1,184,220 1,172,115 1,183,515 1,159,635 1,164,187 47 Demand deposits7 338,616r 296,804' 288,243r 291,999r 303,931 290,920 300,950 284,449 289,972 48 Individuals, partnerships, and corporations 286,045r 252,265r 244,744r 246,316r 256,284 247,088 254,876 241,353 247,384 49 Other holders 52,57 lr 44,539r 43,499r 45,683r 47,647 43,833 46,074 43,096 42,589 50 States and political subdivisions 8,606 8,014 8,509 8,549 8,913 7,331 7,965 7,908 8,256 51 U.S. government 1,838 1,606 1,667 1,635 1,967 1,745 2,431 1,501 1,523 52 Depository institutions in the United States 22,697 19,019 18,276 19,014 20,515 18,728 21,114 17,467 17,994 53 Banks in foreign countries 6,606r 5,848r 5,223r 5,417r 4,910 4,556 4,719 4,954 5,113 54 Foreign governments and official institutions 712 744 632 603 645 714 605 633 702 55 Certified and officers' checks 12,112 9,308 9,192 10,465 10,697 10,759 9,240 10,633 9,000 56 Transaction balances other than demand deposits4 115,852 111,315 110,464 108,783 112,158 109,745 109,236 104,792 104,213 57 Nontransaction balances 764,425 767,972 765,685 763,845 768,130 771,449 773,329 770,394 770,002 58 Individuals, partnerships, and corporations 742,899 745,748 743,322 741,092 745,551 748,575 750,540 747,385 747,221 59 Other holders 21,526 22,224 22,362 22,753 22,579 22,874 22,790 23,009 22,780 60 States and political subdivisions 18,120 18,322 18,373 18,458 18,433 18,688 18,509 18,772 18,564 61 U.S. government 2,009 2,445 2,422 2,446 2,391 2,365 2,338 2,320 2,339 62 Depository institutions in the United States 1,097 1,158 1,271 1,552 1,456 1,502 1,644 1,618 1,580 63 Foreign governments, official institutions, and banks . . 300 300 297 298 298 319 299 300 298 64 Liabilities for borrowed money5 413,204r 408,687r 414,175r 406,953r 426,958 407,964 405,582 403,622 403,999 65 Borrowings from Federal Reserve Banks 1,574 0 0 0 700 0 0 0 50 66 Treasury tax and loan notes 17,135 16,138 17,137 21,059 27,523 12,319 5,285 5,578 3,804 67 Other liabilities for borrowed money6 394,495r 392,549r 397,039r 385,894r 398,734 395,645 400,296 398,044 400,145 68 Other liabilities (including subordinated notes and debentures) ... 200,138r 195,955r 203,185r 204,352r 194,268 202,255 199,744 211,288 215,295 69 Total liabilities L,832,235R L,780,733R 1,781,751' L,775,931R 1,805,446 1,782,334 1,788,841 1,774,545 1,783,481 70 Residual (total assets less total liabilities)7 186,082r 186,725r 186,732r 186,615r 187,259 186,953 186,590 186,981 186,897 MEMO 71 Total loans and leases, gross, adjusted, plus securities8 1,659,453 1,648,558 1,649,037 1,645,021 1,655,548 1,657,340 1,654,959 1,656,137 1,659,473 72 Time deposits in amounts of $100,000 or more 106,274r 109,100 109,740 109,146 109,451 109,200 110,893 110,021 110,390 73 Loans sold outright to affiliates9 1,573 1,573 1,570 1,568 1,520 1,520 1,509 1,498 1,485 74 Commercial and industrial 291 291 291 291 282 282 282 281 281 75 Other 1,282 1,282 1,279 1,277 1,238 1,238 1,227 1,216 1,204 76 Foreign branch credit extended to U.S. residents10 25,194 25,227 25,095 25,110 25,465 24,865 24,603 25,503 25,692 77 Net owed to related institutions abroad 74,479 72,148 80,208 81,870 72,886 79,760 79,190 88,391 91,245 1. Includes certificates of participation, issued or guaranteed by agencies of the US. 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 1995 AAccccoouunntt July 5r July 12r July 19r July 26r Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 ASSETS 1 Cash and balances due from depository institutions 17,210 16,784 16,835 17,305 16,821 16,737 17,059 17,178 1177,,333377 2 U.S. Treasury and government agency securities 41,972 41,828 41,087 41,644 41,957 43,016 44,472 4444,,446666 4444,,992211 3 Other securities 28,137 29,518 29,257 29,741 30,681 30,696 32,787 31,211 32,125 4 Federal funds sold' 26,050 29,071 29,259 32,220 30,651 30,782 28,212 29,482 32,716 To commercial banks in the United States 5,262 7,024 5,969 7,454 7,612 7,173 7,329 8,498 11,093 IS To others2 20,788 22,047 23,290 24,766 23,039 23,609 20,883 20,984 21,622 7 Other loans and leases, gross 176,675 175,204 175,843 174,514 176,796 176,443 175,877 176,035 176,350 8 Commercial and industrial 113,572 113,194 112,156 111,853 113,312 113,066 113,643 113,166 113,361 9 Bankers acceptances and commercial paper . 3,742 3,864 3,972 3,816 3,864 3,864 3,943 3,594 3,512 in All other 109,830 109,330 108,184 108,037 109,448 109,202 109,700 109,572 109,849 H U.S. addressees 104,847 104,415 103,505 103,221 104,528 104,315 104,843 104,759 104,945 i? Non-U.S. addressees 4,983 4,915 4,679 4,816 4,920 4,887 4,857 4,813 4,904 13 Loans secured by real estate 23,348 23,407 23,459 23,222 23,127 23,070 22,994 22,959 22,905 14 Loans to depository and financial institutions 29,367 28,736 28,666 27,892 28,527 28,659 28,419 28,767 2288,,228866 15 Commercial banks in the United States 4,819 4,892 4,891 4,751 4,613 4,724 4,536 4,224 4,116 16 Banks in foreign countries 2,286 2,384 2,361 2,007 2,038 2,206 1,909 1,898 1,974 17 Nonbank financial institutions 22,261 21,459 21,414 21,133 21,876 21,729 21,974 22,645 22,196 18 For purchasing and carrying securities 5,998 5,315 5,367 5,565 5,491 5,545 5,085 5,089 4,821 19 To foreign governments and official institutions 342 478 699 699 951 885500 551177 858 887766 ?n All other 4,048 4,073 5,496 5,283 5,388 5,253 5,220 5,198 6,101 21 Other assets (claims on nonrelated parties) 37,426 37,420 38,204 38,432 38,328 38,988 39,288 40,014 40,230 22 Total assets3 350,659 354,645 356,008 361,948 364,303 363,991 363,919 370,409 373,932 LIABILITIES 23 Deposits or credit balances owed to other than directly related institutions 97,600 104,208 105,205 109,540 109,900 107,641 105,930 110,779 110,413 ?4 Demand deposits4 4,342 3,703 4,264 4,098 3,706 3,680 3,806 3,769 4,484 25 Individuals, partnerships, and corporations .... 3,378 3,030 3,174 3,007 3,010 2,922 2,932 3,071 3,012 76 Other 963 673 1,089 1,091 696 759 874 698 1,472 71 Nontransaction accounts 93,258 100,505 100,941 105,441 106,194 103,961 102,124 107,010 105,930 28 Individuals, partnerships, and corporations .... 59,419 64,502 65,757 69,826 71,365 69,875 69,618 72,947 73,348 29 Other 33,840 36,002 35,184 35,616 34,829 34,086 32,506 34,063 32,581 30 Borrowings from other than directly related institutions 87,270 83,718 84,802 84,876 86,276 85,223 79,618 8844,,004488 8822,,884411 31 Federal funds purchased5 49,195 44,848 43,688 42,016 43,777 42,936 37,990 41,085 40,698 3? From commercial banks in the United States . . 11,416 8,732 6,902 6,262 9,035 7,970 5,838 6,067 5,605 13 From others 37,779 36,116 36,787 35,754 34,742 34,966 32,152 35,018 35,092 34 Other liabilities for borrowed money 38,075 38,871 41,114 42,860 42,498 42,287 41,628 42,963 42,143 35 To commercial banks in the United States 6,643 6,177 5,639 6,523 6,165 6,320 5,502 5,910 5,461 36 To others 31,432 32,694 35,474 36,337 36,333 35,967 36,127 37,053 36,683 37 Other liabilities to nonrelated parties 47,083 47,601 46,686 47,191 49,929 51,303 53,010 52,886 53,965 38 Total liabilities6 350,659 354,645 356,008 361,948 364,303 363,991 363,919 370,409 373,932 MEMO 39 Total loans (gross) and securities, adjusted 262,753 263,706 264,587 265,914 267,860 269,040 269,483 268,473 270,901 40 Net owed to related institutions abroad 95,515 94,298 93,793 92,250 89,129 92,494 99,137 90,674 96,458 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 • November 1995 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period Year ending December 1995 IItteemm 1990 1991 1992 1993 1994 Feb. Mar. Apr. May June July Commercial paper (seasonally adjusted unless noted otherwise) 1111 AAAAllllllll iiiissssssssuuuueeeerrrrssss 562,656 528,832 545,619 555,075 595,382 619,150 633,324 651,128 650,580 648,819 657,938 FFFFiiiinnnnaaaannnncccciiiiaaaallll ccccoooommmmppppaaaannnniiiieeeessss'''' 2222 DDDDeeeeaaaalllleeeerrrr----ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr2222,,,, ttttoooottttaaaallll 214,706 212,999 226,456 218,947 223,038 232,231 243,949 252,846 258,006 251,555 262,695 3333 DDDDiiiirrrreeeeccccttttllllyyyy ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr3333,,,, ttttoooottttaaaallll 200,036 182,463 171,605 180,389 207,701 218,570 218,269 219,281 216,879 218,005 215,473 4444 NNNNoooonnnnffffiiiinnnnaaaannnncccciiiiaaaallll ccccoooommmmppppaaaannnniiiieeeessss4444 147,914 133,370 147,558 155,739 164,643 168,349 171,106 179,001 175,695 179,259 179,770 Bankers dollar acceptances (not seasonally adjusted)5 5555 TTTToooottttaaaallll 54,771 43,770 38,194 32,348 29,835 BBBByyyy hhhhoooollllddddeeeerrrr 6666 AAAAcccccccceeeeppppttttiiiinnnngggg bbbbaaaannnnkkkkssss 9,017 11,017 10,555 12,421 11,783 7777 OOOOwwwwnnnn bbbbiiiillllllllssss 7,930 9,347 9,097 10,707 10,462 8888 BBBBiiiillllllllssss bbbboooouuuugggghhhhtttt ffffrrrroooommmm ooootttthhhheeeerrrr bbbbaaaannnnkkkkssss 1,087 1,670 1,458 1,714 1,321 FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee BBBBaaaannnnkkkkssss6666 9999 FFFFoooorrrreeeeiiiiggggnnnn ccccoooorrrrrrrreeeessssppppoooonnnnddddeeeennnnttttssss 918 1,739 1,276 725 410 n.a. n.a. n.a. n.a. n.a. n.a. 11110000 OOOOtttthhhheeeerrrrssss 44,836 31,014 26,364 19,202 17,642 BBBByyyy bbbbaaaassssiiiissss 11111111 IIIImmmmppppoooorrrrttttssss iiiinnnnttttoooo UUUUnnnniiiitttteeeedddd SSSSttttaaaatttteeeessss 13,095 12,843 12,209 10,217 10,062 11112222 EEEExxxxppppoooorrrrttttssss ffffrrrroooommmm UUUUnnnniiiitttteeeedddd SSSSttttaaaatttteeeessss 12,703 10,351 8,096 7,293 6,355 11113333 AAAAllllllll ooootttthhhheeeerrrr 28,973 20,577 17,890 14,838 13,417 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 5. Data on bankers dollar acceptances are gathered from approximately 100 institupersonal, and mortgage financing; factoring, finance leasing, and other business lending; tions. The reporting group is revised every January. Beginning January 1995, data for insurance underwriting; and other investment activities. Bankers dollar acceptances will be reported annually in September. 2. Includes all financial-company paper sold by dealers in the open market. 6. In 1977 the Federal Reserve discontinued operations in bankers dollar acceptances 3. As reported by financial companies that place their paper directly with investors. for its own account. 4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change rate rate rate 1992—Jan. 1 6.50 1992 6.25 1993—Jan. 6.00 1994—Sept 7.75 July 2 6.00 1993 6.00 Feb. .. 6.00 Oct. . 7.75 1994 7.15 Mar. .. 6.00 Nov. 8.15 1994—Mar. 24 6.25 Apr. .. 6.00 Dec 8.50 Apr. 19 6.75 1992--Jan. . 6.50 May .. 6.00 May 17 7.25 Feb. 6.50 June .. 6.00 1995—Jan. . 8.50 Aug. 16 7.75 Mar. 6.50 July ... 6.00 Feb. 9.00 Nov. 15 8.50 Apr. 6.50 Aug. .. 6.00 Mar. 9.00 May 6.50 Sept. . 6.00 Apr. 9.00 1995—Feb. 1 9.00 June 6.50 Oct. ... 6.00 May 9.00 July 7 8.75 July . 6.02 Nov. .. 6.00 June 9.00 Aug. 6.00 Dec. .. 6.00 July . 8.80 Sept. 6.00 Aug. 8.75 Oct. . 6.00 1994—Jan 6.00 Sept. 8.75 Nov. 6.00 Feb. .. 6.00 Dec. 6.00 Mar. .. 6.06 Apr. .. 6.45 May .. 6.99 June .. 7.25 July 7.25 Aug. .. 7.51 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.15 (519) weekly and business loans. The table shows the date on which a new rate came to be the predominant G.13 (415) monthly statistical releases. 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 • November 1995 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 1995 1995, week ending IItteemm 11999922 11999933 11999944 May June July Aug. July 28 Aug. 4 Aug. 11 Aug. 18 Aug. 25 MONEY MARKET INSTRUMENTS 1 Federal funds1,2'3 3.52 3.02 4.21 6.01 6.00 5.85 5.74 5.75 5.83 5.73 5.74 5.70 2 Discount window borrowing2'4 3.25 3.00 3.60 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 Commercial paper3 5 6 3 1-month 3.71 3.17 4.43 6.05 6.05 5.87 5.85 5.84 5.85 5.84 5.87 5.84 4 3-month 3.75 3.22 4.66 6.06 5.94 5.79 5.82 5.80 5.80 5.81 5.85 5.82 5 6-month 3.80 3.30 4.93 6.07 5.79 5.68 5.75 5.73 5.73 5.73 5.78 5.77 Finance paper, directly placed3 5,7 6 1-month 3.62 3.12 4.33 5.94 5.92 5.74 5.72 5.72 5.72 5.72 5.73 5.72 7 3-month 3.65 3.16 4.53 5.91 5.73 5.60 5.64 5.63 5.61 5.63 5.66 5.65 8 6-month 3.63 3.15 4.56 5.81 5.47 5.39 5.51 5.50 5.49 5.47 5.53 5.53 Bankers acceptances3'5'8 9 3-month 3.62 3.13 4.56 5.91 5.80 5.66 5.68 5.66 5.65 5.66 5.70 5.69 10 6-month 3.67 3.21 4.83 5.90 5.65 5.56 5.62 5.60 5.59 5.60 5.65 5.65 Certificates of deposit, secondary market3,9 11 1-month 3.64 3.11 4.38 5.98 5.97 5.80 5.77 5.77 5.76 5.75 5.80 5.77 12 3-month 3.68 3.17 4.63 6.02 5.90 5.77 5.77 5.77 5.75 5.75 5.80 5.77 13 6-month 3.76 3.28 4.96 6.07 5.80 5.73 5.79 5.77 5.75 5.76 5.83 5.82 14 Eurodollar deposits, 3-month3'10 3.70 3.18 4.63 6.03 5.89 5.79 5.79 5.79 5.78 5.78 5.82 5.81 U.S. Treasury bills Secondary market3,5 15 3-month 3.43 3.00 4.25 5.67 5.47 5.42 5.40 5.44 5.42 5.40 5.44 5.41 16 6-month 3.54 3.12 4.64 5.67 5.42 5.37 5.41 5.40 5.40 5.41 5.46 5.41 17 1-year 3.71 3.29 5.02 5.65 5.33 5.28 5.43 5.39 5.36 5.39 5.52 5.48 Auction average3,5,11 18 3-month 3.45 3.02 4.29 5.70 5.50 5.47 5.41 5.47 5.44 5.41 5.42 5.43 19 6-month 3.57 3.14 4.66 5.73 5.46 5.41 5.40 5.46 5.39 5.40 5.42 5.43 20 1-year 3.75 3.33 5.02 5.90 5.38 5.38 5.55 5.38 n.a. n.a. n.a. 5.55 U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 3.89 3.43 5.32 6.00 5.64 5.59 5.75 5.72 5.68 5.71 5.86 5.81 22 2-year 4.77 4.05 5.94 6.17 5.72 5.78 5.98 5.94 5.91 5.95 6.10 6.04 23 3-year 5.30 4.44 6.27 6.27 5.80 5.89 6.10 6.07 6.06 6.07 6.21 6.15 24 5-year 6.19 5.14 6.69 6.41 5.93 6.01 6.24 6.21 6.19 6.24 6.36 6.28 25 7-year 6.63 5.54 6.91 6.50 6.05 6.20 6.41 6.39 6.38 6.42 6.52 6.45 26 10-year 7.01 5.87 7.09 6.63 6.17 6.28 6.49 6.46 6.48 6.50 6.57 6.52 27 20-year n.a. 6.29 7.49 7.01 6.59 6.74 6.92 6.90 6.92 6.95 7.00 6.93 28 30-year 7.67 6.59 7.37 6.95 6.57 6.72 6.86 6.88 6.89 6.92 6.92 6.85 Composite 29 More than 10 years (long-term) 7.52 6.45 7.41 6.99 6.59 6.71 6.90 6.87 6.89 6.93 6.99 6.92 STATE AND LOCAL NOTES AND BONDS Moody's series13 30 6.09 5.38 5.77 5.68 5.62 5.68 5.83 5.72 5.75 5.79 5.81 5.90 31 Baa 6.48 5.83 6.17 5.98 5.89 5.91 5.95 5.89 5.97 6.00 5.92 5.93 32 Bond Buyer series14 6.44 5.60 6.18 5.95 5.84 5.92 6.06 5.97 6.03 6.07 6.12 6.08 CORPORATE BONDS 33 Seasoned issues, all industries'5 8.55 7.54 8.26 7.86 7.54 7.66 7.81 7.81 7.81 7.83 7.88 7.82 Rating group 34 8.14 7.22 7.97 7.65 7.30 7.41 7.57 7.56 7.57 7.59 7.64 7.58 35 Aa 8.46 7.40 8.15 7.74 7.43 7.54 7.69 7.69 7.69 7.71 7.75 7.70 36 A 8.62 7.58 8.28 7.86 7.53 7.65 7.79 7.80 7.80 7.81 7.86 7.80 37 BBaaaa 8.98 7.93 8.63 8.20 7.90 8.04 8.19 8.19 8.19 8.22 8.26 8.20 38 AA--rraatteedd,, rreecceennttllyy ooffffeerreedd uuttiilliittyy bboonnddss''66 8.52 7.46 8.29 7.89 7.60 7.72 7.84 7.88 7.88 7.96 7.89 7.70 MEMO Dividend-price ratio17 39 Common stocks 2.99 2.78 2.82 2.60 2.55 2.50 2.49 2.48 2.49 2.49 2.49 2.50 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 obligation bonds 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. Common stock ratio is based on the 500 stocks 9. An average of dealer offering rates on nationally traded certificates of deposit. in the price index. 10. Bid rates for Eurodollar deposits at 11:00 a.m. London time. Data are for indication NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and purposes only. G.13 (415) monthly statistical releases. For ordering address, see inside front cover. 11. Auction date for daily data; weekly and monthly averages computed on an issue-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.36 STOCK MARKET Selected Statistics 1994 1995 IInnddiiccaattoorr 11999922 11999933 11999944 Dec. Jan. Feb. Mar. Apr. May June July Aug. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 229.00 249.71 254.16 248.65 253.56 261.86 266.81 274.38 281.81 289.52 298.18 300.05 2 Industrial 284.26 300.10 315.32 313.92 319.93 328.98 337.96 347.69 357.01 366.75 379.13 379.79 3 Transportation 201.02 242.68 247.17 218.93 230.25 237.29 252.37 254.36 254.70 256.80 279.15 285.63 4 Utility 99.48 114.55 104.96 100.01 100.58 103.87 102.08 104.70 106.02 108.12 109.59 111.06 5 Finance 179.29 216.55 209.75 195.25 201.05 211.76 213.29 219.38 228.45 236.26 240.49 245.27 6 Standard & Poor's Corporation (1941-43 = 10)' 415.75 451.63 460.42 455.19 465.25 481.92 493.20 507.91 523.83 539.35 557.37 559.11 7 American Stock Exchange (Aug. 31, 1973 = 50)2 391.28 438.77 449.49 427.39 436.09 446.37 456.06 471.54 487.03 492.60 513.25 526.86 Volume of trading (thousands of shares) 8 New York Stock Exchange 202,558 263,374 290,652 302,049 326,652 333,020 338,733 331,184 341,905 345,547 363,780 309,879 9 American Stock Exchange 14,171 18,188 17,951 18,745 18,829 18,424 17,905 19,404 19,266 24,622 23,283 21,825 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 43,990 60,310 61,160 61,160 64,380 59,800 60,270 62,520 64,070 66,340 67,600 71,440 Free credit balances at brokers4 11 Margin accounts5 8,970 12,360 14,095 14,095 13,225 12,380 12,745 12,440 13,403 13,710 13,830 13,900 12 Cash accounts 22,510 27,715 28,870 28,870 26,440 25,860 26,680 26,670 27,464 29,860 28,600 29,190 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 Financial Statistics • November 1995 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1995 11999922 11999933 11999944 Mar. Apr. May June July Aug. U.S. budget1 1 Receipts, total 1,090,453 1,153,226 1,257,187 92,532 165,392 90,405 147,868 92,749 96,560 2 On-budget 788,027 841,292 922,161 61,970 126,170 61,027 115,998 65,788 69,265 3 Off-budget 302,426 311,934 335,026 30,562 39,222 29,378 31,870 26,961 27,295 4 Outlays, total 1,380,856 1,408,532 1,461,067 143,074 115,673 129,958 135,054 106,328 130,411 5 On-budget 1,128,518 1,141,945 1,460,557 117,123 90,628 103,184 120,236 80,931 104,135 6 Off-budget 252,339 266,587 279,372 25,951 25,045 26,773 14,818 25,397 26,276 7 Surplus or deficit (-), total -290,403 -255,306 -203,370 -50,543 49,720 -39,553 12,814 -13,579 -33,851 8 On-budget -340,490 -300,653 -259,024 -55,153 35,542 -42,157 -4,237 -15,143 -34,870 9 Off-budget 50,087 45,347 55,654 4,610 14,178 2,604 17,051 1,564 1,019 Source of financing (total) 10 Borrowing from the public 310,918 248,594 184,998 13,645 -27,638 44,740 8,491 10,627 16,071 11 Operating cash (decrease, or increase (-)) -17,305 6,283 16,564 17,747 -19,972 11,841 -34,312 11,635 30,776 12 Other1 -3,210 429 1,808 18,535 -2,110 22,578 12,250 15,523 12,996 MEMO 13 Treasury operating balance (level, end of period) 58,789 52,506 35,942 18,097 38,069 26,228 60,540 48,905 18,129 14 Federal Reserve Banks 24,586 17,289 6,848 4,543 8,241 4,646 20,977 11,206 4,767 15 Tax and loan accounts 34,203 35,217 29,094 13,554 29,828 21,582 39,563 37,700 13,363 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 International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets; and Outlays of the U.S. Government; and U.S. Office of Management and Budget, Budget accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous of 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 A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS' Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1993 1994 1995 1995 11999933 11999944 H2 HI H2 HI June July Aug. RECEIPTS 1 All sources 1,153,226 1,257,453 582,038 652,234 625,557 710,542 147,868 92,749 96,560 2 Individual income taxes, net 509,680 543,055 262,073 275,052 273,474 307,498 61,457 42,819 44,122 3 Withheld 430,211 459,699 228,423 225,387 240,062 251,398 40,901 41,532 41,631 4 Presidential Election Campaign Fund 28 70 2 63 10 58 8 6 1 5 Nonwithheld 154,989 160,364 41,768 117,937 42,031 132,006 23,053 3,094 4,146 6 Refunds 75,546 77,077 8,115 68,325 9,207 75,958 2,505 1,812 1,657 Corporation income taxes 7 Gross receipts 131,548 154,205 68,266 80,536 78,392 92,132 36,645 4,476 33,,228844 8 Refunds 14,027 13,820 6,514 6,933 7,331 10,399 768 1,079 782 9 Social insurance taxes and contributions, net . .. 428,300 461,475 206,176 248,301 220,141 261,837 41,341 36,498 39,804 10 Employment taxes and contributions2 ....... 396,939 428,810 192,749 228,714 206,613 228,663 40,605 34,514 34,914 11 Self-employment taxes and contributions . 20,604 24,433 4,335 20,762 4,135 23,429 4,032 186 135 12 Unemployment insurance 26,556 28,004 11,010 17,301 11,177 18,001 320 1,636 4,454 13 Other net receipts4 4,805 4,661 2,417 2,284 2,349 2,267 416 349 436 14 Excise taxes 48,057 55,225 25,994 26,444 30,062 27,452 4,897 5,074 4,757 15 Customs deposits 18,802 20,099 10,215 9,500 11,042 8,847 1,583 1,603 1,794 16 Estate and gift taxes 12,577 15,225 6,617 8,197 7,071 7,424 1,040 1,037 1,500 17 Miscellaneous receipts 18,273 22,041 9,227 11,170 13,305 15,749 1,674 2,320 2,081 OUTLAYS 18 All types 1,408,532 1,460,722 727,685 710,620 752,317R 760,824 135,054 106,328 130,411 19 National defense 291,086 281,451 146,672 133,844 141,793r 135,931 26,905 18,069 23,882 20 International affairs 16,826 17,249 10,186 5,800 12,055 4,727 818 517 1,877 21 General science, space, and technology 17,030 17,602 8,880 8,502 8,978 8,611 1,521 1,355 1,668 22 Energy 4,319 5,398 1,663 2,237 3,102 2,358 601 547 13 23 Natural resources and environment 20,239 20,902 11,221 10,111 12,989r 10,273 1,698 1,811 2,116 24 Agriculture 20,443 15,131 7,516 7,451 7,698r 4,039 -328 -482 -462 25 Commerce and housing credit -22,725 -4,851 -1,490 -4,962 -3,999r -13,936 -3,041 -733 -2,592 26 Transportation 35,004 36,835 19,570 16,739 20,480r 18,192 3,432 3,324 3,359 27 Community and regional development 9,051 11,877 4,288 4,571 6,447r 4,858 1,035 1,191 909 28 Education, training, employment, and social services 50,012 44,730 26,753 19,262 25,889r 25,738 4,480 2,869 55,,778855 29 Health 99,415 106,495 52,958 53,195 54,123 58,759 10,543 8,777 10,422 30 Social security and Medicare 435,137 464,312r 223,735 232,777 236,817r 251,975 47,721 40,015 42,790 31 Income security 207,257 213,972 102,380 109,080 101,743 117,639 16,426 15,310 16,919 32 Veterans benefits and services 35,720 37,637 19,852 16,686 19,757r 19,267 4,552 1,591 3,267 33 Administration of justice 14,955 15,283 7,400 7,718 1,199' 8,062 1,419 1,664 1,400 34 General government 13,009 11,348 6,531 5,084 7,383r 5,797 1,781 421 1,464 35 Net interest6 198,811 202,957 99,914 99,844 109,435 116,170 18,617 20,245 20,619 36 Undistributed offsetting receipts -37,386 -37,772 -20,344 -17,308 -20,065r -17,632 -3,127 -10,163 -3,022 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 3. Old-age, disability, and hospital insurance. and Outlays of the U.S. Government; and U.S. Office of Management and Budget, Budget 4. Federal employee retirement contributions and civil service retirement and of the U.S. Government, Fiscal Year 1996. disability fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • November 1995 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1993 1994 1995 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 4,373 4,436 4,562 4,602 4,673 4,721 4,827 4,891 4,978 2 Public debt securities 4,352 4,412 4,536 4,576 4,646 4,693 4,800 4,864 4,951 3 Held by public 3,252 3,295 3,382 3,434 3,443 3,480 3,543 3,610 3,635 4 Held by agencies 1,100 1,117 1,154 1,142 1,203 1,213 1,257 1,255 1,317 5 Agency securities 21 25 27 26 28 29 27 27 27 6 Held by public 21 25 27 26 27 29 27 26 27 7 Held by agencies 0 0 0 0 0 0 0 0 0 8 Debt subject to statutory limit 4,256 4,316 4,446 4,491 4,559 4,605 4,711 4,775 4,861 9 Public debt securities 4,256 4,315 4,445 4,491 4,559 4,605 4,711 4,774 4,861 10 Other debt' 0 0 0 0 0 0 0 0 0 MEMO 11 Statutory debt limit 4,370 4,900 4,900 4,900 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 participation certificates, notes to international lending organizations, and District of the 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 1994 1995 TTyyppee aanndd hhoollddeerr 11999911 11999922 11999933 11999944 Q3 Q4 QL Q2 1 Total gross public debt 3,801.7 4,177.0 4,535.7 4,800.2 4,692.8 4,800.2 4,864.1 4,951.4 By type 2 Interest-bearing 3,798.9 4,173.9 4,532.3 4,769.2 4,689.5 4,769.2 4,860.5 4,947.8 3 Marketable 2,471.6 2,754.1 2,989.5 3,126.0 3,091.6 3,126.0 3,227.3 3,252.6 4 Bills 590.4 657.7 714.6 733.8 697.3 733.8 756.5 748.3 5 Notes 1,430.8 1,608.9 1,764.0 1,867.0 1,867.5 1,867.0 1,938.2 1,974.7 6 Bonds 435.5 472.5 495.9 510.3 511.8 510.3 517.7 514.7 7 Nonmarketable' 1,327.2 1,419.8 1,542.9 1,643.1 1,597.9 1,643.1 1,633.2 1,695.2 8 State and local government series 159.7 153.5 149.5 132.6 137.4 132.6 122.9 121.2 9 Foreign issues2 41.9 37.4 43.5 42.5 42.0 42.5 41.8 41.4 10 Government 41.9 37.4 43.5 42.5 42.0 42.5 41.8 41.4 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 135.9 155.0 169.4 177.8 176.4 177.8 178.8 180.1 13 Government account series3 959.2 1,043.5 1,150.0 1,259.8 1,211.7 1,259.8 1,259.2 1,322.0 14 Non-interest-bearing 2.8 3.1 3.4 31.0 3.2 31.0 3.6 3.6 By holder 4 15 U.S. Treasury and other federal agencies and trust funds 968.7 1,047.8 1,153.5 1,257.1 1,213.1 1,257.1 1,254.7 1,316.6 16 Federal Reserve Banks 281.8 302.5 334.2 374.1 355.2 374.1 369.3 389.0 17 Private investors 2,563.2 2,839.9 3,047.7 3,168.0 3,127.8 3,168.0 3,239.1 3,244.6 18 Commercial banks 232.5R 294.4R 322.2R 290.6R 313.9 290.6R 303.5R 305.0 19 Money market funds 80.0 19.1' 80.8R 67.6 60.1 67.6 61.7 58.7 20 Insurance companies 181.8R 197.5 234.5R 242.8R 246.2R 242.8R 259.0R 260.0 21 Other companies 150.8 192.5 213.0 226.5R 229.3 226.5R 230.3 227.7 22 State and local treasuries 485.1R 416.1' 508.9R 443.3R 469.7R 443.3R 415.2R 415.0 Individuals 23 Savings bonds 138.1 157.3 171.9 180.5 178.6 180.5 181.4 182.6 24 Other securities 125.8 131.9 137.9 152.5 148.6 152.5 161.4 161.6 25 Foreign and international5 491.7R 549.7 623.0R 688.6R 655.5R 688.6R 729.6R 783.7 26 Other miscellaneous investors6 677.4R 760.2R 755.4R 875.6R 825.9R 875.6R 891.0R 850.4 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 A31 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1995 1995, week ending IItteemm May June July July 5 July 12 July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 52,894 47,751 42,52 lr 36,862 41,899 44,888 46,378r 38,841 35,175 5522,,774400 46,277 46,014 Coupon securities, by maturity 2 Five years or less 102,560 98,618 88,585r 71,454 87,044 87,189 100,442' 90,852 83,099 103,772 84,489 83,590 3 More than five years 59,066 55,441 48,238r 36,172 48,433 50,443 51,349r 51,120 57,784 62,429 36,884 47,257 4 Federal agency 21,890 22,595 21,442 21,799 22,039 22,224 20,369 20,578 19,585 20,150 21,165 23,049 5 Mortgage-backed 29,333 31,425 29,364r 13,564 41,109 35,964 24,309r 23,017 39,828 32,581 21,232 18,769 By type of counterparty With interdealer broker 6 U.S. Treasury 125,478 120,661 105,382r 81,699 105,128 109,018 116,08 lr 105,599 101,375 126,137 99,012 106,013 7 Federal agency 868 638 673 418 876 692 674 556 708 587 1,057 835 8 Mortgage-backed 10,050 10,912 10,315r 4,148 13,394 12,415 10,224r 8,003 11,741 10,116 6,300 6,339 With other 9 U.S. Treasury 89,043 81,150 73,961r 62,788 72,248 73,502 82,087r 75,214 74,683 92,804 68,637 70,848 10 Federal agency 21,022 21,957 20,770 21,382 21,163 21,532 19,695 20,022 18,878 19,563 20,108 22,213 11 Mortgage-backed 19,282 20,513 19,049 9,416 27,715 23,549 14,085 15,014 28,087 22,465 14,932 12,431 FUTURES TRANSACTIONS3 By type of deliverable security 12 U.S. Treasury bills 1,371 916 493r 607 327 531 589r 434 304 786 725 1,240 Coupon securities, by maturity 13 Five years or less 2,877 2,799 l,773r 2,270 1,523 1,836 l,862r 1,437 1,118 1,328 1,553 2,973 14 More than five years 17,425 17,667 13,585r 11,397 11,799 14,087 16,305r 13,377 12,639 15,494 10,107 13,914 15 Federal agency 0 0 0 0 0 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 n.a. 0 0 0 n.a. 0 Coupon securities, by maturity 18 Five years or less 2,695 2,653 2,806 3,144 3,906 2,120 2,379 2,489 2,197 2,293 2,602 1,975 19 More than five years 5,230 4,319 4,265 3,841 5,051 4,749 4,087 2,872 4,116 4,363 4,838 3,148 20 Federal agency 0 0 0 0 0 n.a. 0 0 0 0 0 0 21 Mortgage-backed 1,199 1,201 1,117 1,392 1,509 1,113 833 666 1,597 1,211 507 1,429 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 federal agency futures contracts on U.S. Treasury and federal agency securities. securities) for which delivery is scheduled in five business days or less and "when- NOTE, "n.a." indicates that data are not published because of insufficient activity. issued" securities that settle on the issue date of offering. Transactions for immediate delivery Major changes in the report form filed by primary dealers induced a break in the dealer of mortgage-backed agency securities include purchases and sales for which delivery is scheduled data series as of the week ending July 6, 1994. in 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 • November 1995 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1995 1995, week ending May June July July 5 July 12 July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 4,533 634 8,454 9,180 5,490 4,928 13,280 10,058 9,258 -148 6,177 Coupon securities, by maturity 2 Five years or less 1,996 4,291 2,934 6,110 3,232 2,371 2,810 303 3,777 -5,491 3,933 3 More than five years -20,487 -14,742 -17,954 -17,046 -16,396 -16,838 -19,853 -19,950 -18,482 -17,555 -18,223 4 Federal agency 22,564 23,438 20,134 20,627 20,778 21,688 19,427 17,556 20,083 20,270 16,917 5 Mortgage-backed 34,798 31,381 32,714 31,493 32,912 33,338 32,607 32,934 30,972 29,475 29,005 NET FUTURES POSITIONS4 By type of deliverable security 6 U.S. Treasury bills -11,208 -7,706 -5,615 -5,504 -4,996 -6,164 -6,254 -4,927 -4,605 -3,177 -2,509 Coupon securities, by maturity 7 Five years or less 1,128 2,020 1,913 1,274 2,004 1,910 1,876 2,483 2,315 2,707 2,610 8 More than five years -4,195 -7,797 -1,271 -3,505 -2,857 -1,619 1,120 323 -1,659 -224 -496 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 NET OPTIONS POSITIONS By type of deliverable security 11 U.S. Treasury bills 0 0 0 0 0 0 n.a. n.a. n.a. n.a. 0 Coupon securities, by maturity 12 Five years or less 22 555 846 796 487 -634 1,465 2,607 1,641 2,118 2,537 13 More than five years -1,623 -2,537 -3,260 -2,161 -3,569 -3,734 -3,836 -2,458 -2,068 -2,652 -3,876 14 Federal agency 0 0 0 n.a. n.a. 0 0 0 0 0 0 15 Mortgage-backed 2,470 2,816 1,802 1,928 681 2,235 2,227 2,045 1,228 1,137 1,790 Financing5 Reverse repurchase agreements 16 Overnight and continuing 224,729 237,727 222,594 227,864 224,162 222,451 212,109 230,011 224,967 235,306 216,262 17 Term 369,097 396,685 419,813 359,705 411,002 427,172 452,889 435,650 462,297 373,898 388,247 Securities borrowed 18 Overnight and continuing 163,757 158,449 156,460 158,895 156,513 158,474 154,806 153,449 152,405 158,770 158,343 19 Term 55,704 55,058 59,037 51,547 53,613 60,405 64,067 65,165 64,843 59,662 60,762 Securities received as pledge 20 Overnight and continuing 2,552 3,127 2,740 3,112 3,033 2,727 2,443 2,391 2,158 2,052 1,954 21 Term 103 102 81 97 40 47 106 135 120 120 99 Repurchase agreements 22 Overnight and continuing 465,539 490,204 479,826 477,694 480,852 479,780 474,467 488,088 484,479 486,452 461,895 23 Term 323,351 341.771 357,225 303,858 348,504 365,608 385,510 371,468 399,306 313,290 328,838 Securities loaned 24 Overnight and continuing 4,879 4,971 5,717 4,758 6,131 6,787 5,034 5,552 4,427 4,444 4,260 25 Term 1,842 2,003 2,132 2,286 2,075 2,021 2,216 2,095 2,160 2,099 2,070 Securities pledged 26 Overnight and continuing 28,703 33,240 30,162 33,831 29,759 29,037 29,472 29,601 27,661 27,891 27,693 27 Term 3,742 4,251 3,909 3,029 4,031 4,095 4,176 3,981 3,815 2,748 2,698 Collateralized loans 28 Overnight and continuing 13,004 13,613 18,645 15,852 19,425 18,123 19,223 20,267 18,672 15,490 16,683 29 Term n.a. 4,177 4,177 4,177 n.a. n.a. n.a. n.a. n.a. n.a. n.a. MEMO: Matched book6 Securities in 30 Overnight and continuing 212,193 219,216 209,502 213,018 207,611 207,471 204,622 218,311 213,121 225,599 207,382 31 Term 346,228 367,824 397,443 336,764 387,443 406,847 428,350 415,688 435,287 354,902 369,435 Securities out 32 Overnight and continuing 273,963 286,362 298,309 282,124 288,791 303,461 301,183 316,582 310,888 314,299 297,949 33 Term 272,206 287,643 304,492 257,329 297,736 313,087 326,808 317,840 343,447 260,943 274,728 1. Data for positions and financing are obtained from reports submitted to the Federal 4. Futures positions reflect standardized agreements arranged on an exchange. All Reserve Bank of New York by the U.S. government securities dealers on its published list futures positions are included regardless of time to delivery. of primary dealers. Weekly figures are close-of-business Wednesday data. Positions for 5. Overnight financing refers to agreements made on one business day that mature on calendar days of the report week are assumed to be constant. Monthly averages are based the next business day; continuing contracts are agreements that remain in effect for more on the number of calendar days in the month. than one business day but have no specific maturity and can be terminated without 2. Securities positions are reported at market value. advance notice by either party; term agreements have a fixed maturity of more than one 3. Net outright positions include immediate and forward positions. Net immediate business day. Financing data are reported in terms of actual funds paid or received, positions include securities purchased or sold (other than mortgage-backed agency securi- including accrued interest. ties) that have been delivered or are scheduled to be delivered in five business days or less 6. Matched-book data reflect financial intermediation activity in which the borrowing and "when-issued" securities that settle on the issue date of offering. Net immediate and lending transactions are matched. Matched-book data are included in the financing positions for mortgage-backed agency securities include securities purchased or sold that breakdowns given above. The reverse repurchase and repurchase numbers are not always have been delivered or are scheduled to be delivered in thirty business days or less. equal because of the "matching" of securities of different values or different types of Forward positions reflect agreements made in the over-the-counter market that specify collateralization. delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt NOTE, "n.a." indicates that data are not published because of insufficient activity. securities are included when the time to delivery is more than five business days. Forward Major changes in the report form filed by primary dealers induced a break in the dealer contracts for mortgage-backed agency securities are included when the time to delivery is data series as of the week ending July 6, 1994. more than thirty business days. 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 1995 AAggeennccyy 11999911 11999922 11999933 11999944 Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies 442,772 483,970 570,711 738,928 746,071 754,658 759,681 771,524 786,782 2 Federal agencies 41,035 41,829 45,193 39,186 39,054 38,759 38,777 38,720 38,412 3 Defense Department1 7 7 6 6 6 6 6 6 6 4 Export-Import Bank2'3 9,809 7,208 5,315 3,455 3,455 3,156 3,156 3,156 2,652 5 Federal Housing Administration4 397 374 255 116 60 65 70 78 81 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 8,421 10,660 9,732 8,073 7,873 7,873 7,873 7,615 7,615 8 Tennessee Valley Authority 22,401 23,580 29,885 27,536 27,660 27,659 27,672 27,865 28,058 9 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Federally sponsored agencies7 401,737 442,141 523,452 699,742 707,017 715,899 720,904 732,804 748,370 11 Federal Home Loan Banks 107,543 114,733 139,512 205,817 205,629 210,185 211,944 218,131 223,089 12 Federal Home Loan Mortgage Corporation 30,262 29,631 49,993 93,279 101,417 101,673 106,432 107,686 108,484 13 Federal National Mortgage Association 133,937 166,300 201,112 257,230 255,719 258,653 258,176 263,023 270,937 14 Farm Credit Banks8 52,199 51,910 53,123 53,175 53,846 53,947 53,629 54,054 53,915 15 Student Loan Marketing Association9 38,319 39,650 39,784 50,335 50,506 51,554 50,758 49,993 51,268 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 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 185,576 154,994 128,187 103,817 100,388 98,266 95,374 92,739 90,638 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 9,803 7,202 5,309 3,449 3,449 3,150 3,150 3,150 2,646 21 Postal Service6 8,201 10,440 9,732 8,073 7,873 7,873 7,873 7,615 7,615 22 Student Loan Marketing Association 4,820 4,790 4,760 n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority 10,725 6,975 6,325 3,200 3,200 3,200 3,200 3,200 3,200 24 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Other lending14 25 Farmers Home Administration 48,534 42,979 38,619 33,719 33,574 32,759 31,769 30,759 28,419 26 Rural Electrification Administration 18,562 18,172 17,578 17,392 17,360 17,293 17,299 17,313 17,274 27 Other 84,931 64,436 45,864 37,984 34,932 33,991 32,083 30,702 31,484 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 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 • November 1995 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1995 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June July Aug. 1 All issues, new and refunding1 226,818 279,945 153,950 7,717 7,366 11,844 8,552 11,804 17,956 9,777 12,308 By type of issue 2 General obligation 78,925 90,599 54,404 3,770 3,714 5,459 3,536 4,332 5,755 3,529 4,519 3 Revenue 147,893 189,346 99,546 3,947 3,652 6,385 5,016 7,472 12,201 6,248 7,789 By type of issuer 4 State 24,874 27,999 19,186 738 1,032 2,315 994 1,315 1,329 645 617 5 Special district or statutory authority2 138,327 178,714 95,896 4,835 4,889 6,572 5,814 8,039 11,382 7,399 7,491 6 Municipality, county, or township 63,617 73,232 38,868 2,144 1,445 2,957 1,744 2,450 5,245 1,733 4,200 7 Issues for new capital 101,865 91,434 105,972 5,737 5,670 10,538 6,497 8,406 13,796 8,384 7,142 By use of proceeds 8 Education 18,852 16,831 21,267 1,411 1,464 1,666 1,863 2,594 2,494 1,924 1,180 9 Transportation 14,357 9,167 10,836 625 671 454 615 606 3,127 1,926 869 10 Utilities and conservation 12,164 12,014 10,192 538 249 633 345 1,282 1,235 485 1,504 11 Social welfare 16,744 13,837 20,289 1,182 869 2,556 1,547 1,738 2,062 1,333 1,421 12 Industrial aid 6,188 6,862 8,161 384 215 1,011 391 416 411 500 201 13 Other purposes 33,560 32,723 35,227 1,597 2,202 4,218 1,736 1,770 4,467 2,216 1,967 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 1995 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, oorr iissssuueerr 11999922 11999933 11999944 Dec. Jan. Feb. Mar. Apr. May June July 1 A11 issues' 559,827 754,969 n.a. 23,267 37,392r 42,121' 40,146r 29,645r 53,454r 54,662r 31,473 2 Bonds2 471,502 641,498 n.a. 20,493 34,490r 37,290r 37,226r 26,116' 47,456r 47,565r 27,294 By type of offering 3 Public, domestic 378,058 486,879 365,050 17,809 24,53 lr 29,392r 33,038r 22,395' 39,228' 41,816' 21,815 4 Private placement, domestic1 65,853 116,240 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 27,591 38,379 56,238 2,684 9,959 7,898 4,188' 3,721' 8,228' 5,749' 5,479 By industry group 6 Manufacturing 82,058 88,002 31,981 1,508 l,547r 4,450r 2,184' 2,701' 1,765' 5,925' 4,127 7 Commercial and miscellaneous 43,111 60,293 27,900 2,469 2,39 lr 3,038 1,941 1,795' 6,002' 4,400' 2,096 8 Transportation 9,979 10,756 4,573 269 0 100 403 800 945 627 10 9 Public utility 48,055 56,272 11,713 273 659 215 959' 331' 2,47c 2,650' 498 10 Communication 15,394 31,950 11,986 419 813 1,127' 411' 260' 1,692' 1,745 1,494 11 Real estate and financial 272,904 394,226 333,135 15,556 29,079r 28,360' 31,329' 20,229' 34,582' 32,218' 19,069 12 Stocks2 88,325 113,472 n.a. 2,774 2,902 4,831 2,920 3,529 5,998 7,097 3,955 By type of offering 13 Public preferred 21,339 18,897 12,432r 178 430 296 205 381 1,407 726 753 14 Common 57,118 82,657 47 881' 2,595 2,472 4,535 2,715 3,148 4,591 6,371 3,202 15 Private placement3 9,867 11,917 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 22,723 22,271 n.a. 1,203 1,086 1,582 1,010 612 2,258 2,243 1,195 17 Commercial and miscellaneous 20,231 25,761 857 390 1,413 907 1,841 1,050 2,413 1,501 18 Transportation 2,595 2,237 0 19 15 60 48 101 0 0 19 Public utility 6,532 7,050 165 134 258 137 141 185 183 124 20 Communication 2,366 3,439 21 496 0 20 0 74 0 64 21 Real estate and financial 33,879 52,021 527 776 1,546 786 887 2,232 2,258 1,071 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 1995 IItteemm 11999933 11999944 Dec. Jan. Feb. Mar. Apr. May June' July 1 Sales of own shares2 851,885 841,286 73,183 75,099 59,121 69,898 68,294 70,798 74,749 76,081 2 Redemptions of own shares 567,881 699,823 70,747 63,737 50,738 60,970 59,957 57,033 61,932 56,344 3 Net sales3 284,004 141,463 2,436 11,362 8,383 8,928 8,337 13,765 12,817 19,736 4 Assets4 1,510,209 1,550,490 1,550,490 1,563,187 1,619,705 1,657,370 1,710,280 1,769,287 1,808,753 1,880,754 5 Cash5 100,209 121,296 121,296 124,351 126,307 121,424 124,092 128,375 122,461 126,340 6 Other 1,409,838 1,429,195 1,429,195 1,438,836 1,493,399 1,535,946 1,586,187 1,640,913 1,686,292 1,754,415 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 1993 1994 1995 AAccccoouunntt 11999922 11999933 11999944 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 1 Profits with inventory valuation and capital consumption adjustment 405.1 485.8 542.7 493.5 533.9 508.2 546.4 556.0 560.3 569.7 581.1 2 Profits before taxes 395.9 462.4 524.5 458.7 501.7 483.5 523.1 538.1 553.5 570.6 574.1 3 Profits-tax liability 139.7 173.2 202.5 169.9 191.5 184.1 201.7 208.6 215.6 220.0 220.4 4 Profits after taxes 256.2 289.2 322.0 288.9 310.2 299.4 321.4 329.5 337.9 350.7 353.6 5 Dividends 171.1 191.7 205.2 193.2 194.6 196.3 202.5 207.9 213.9 217.1 219.9 6 Undistributed profits 85.1 97.5 116.9 95.6 115.6 103.0 118.9 121.6 124.0 133.5 133.8 7 Inventory valuation -6.4 -6.2 -19.5 3.0 -6.5 -12.3 -14.1 -19.6 -32.1 -39.0 —28.2r 8 Capital consumption adjustment 15.7 29.5 37.7 31.7 38.8 37.0 37.4 37.5 38.8 38.1 35.2r 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 546.60 586.73 638.37 563.48 578.95 594.56 604.51 619.34 637.08 651.92 645.13 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 99..1100 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 • November 1995 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities' Billions of dollars, end of period; not seasonally adjusted 1993 1994 1995 AAccccoouunntt 11999922 11999933 11999944 Q4 Ql Q2 Q3 04 Ql Q2 ASSETS 1 Accounts receivable, gross2 491.8 482.8 551.0 482.8 494.5 511.3 524.1 551.0 568.5 586.9 2 Consumer 118.3 116.5 134.8 116.5 120.1 124.3 130.3 134.8 135.8 141.7 3 Business 301.3 294.6 337.6 294.6 302.3 313.2 317.2 337.6 351.9 361.8 4 Real estate 72.2 71.7 78.5 71.7 72.1 73.8 76.6 78.5 80.8 83.4 5 LESS: Reserves for unearned income 53.2 50.7 55.0 50.7 51.2 51.9 51.1 55.0 58.9 62.2 6 Reserves for losses 16.2 11.2 12.4 11.2 11.6 12.1 12.1 12.4 12.9 13.7 7 Accounts receivable, net 422.4 420.9 483.5 420.9 431.7 447.3 460.9 483.5 496.7 511.1 8 All other 142.5 170.9 183.4 170.9 171.2 174.6 177.2 183.4 194.6 198.0 9 Total assets 564.9 591.8 666.9 591.8 602.9 621.9 638.1 666.9 691.4 709.1 LIABILITIES AND CAPITAL 10 Bank loans 37.6 25.3 21.2 25.3 24.2 23.3 21.6 21.2 21.0 21.5 11 Commercial paper 156.4 159.2 184.6 159.2 165.9 171.2 171.0 184.6 181.3 181.3 Debt 12 Owed to parent 39.5 42.7 51.0 42.7 41.1 44.7 50.0 51.0 52.5 57.5 13 Not elsewhere classified 196.3 206.0 235.0 206.0 211.7 219.6 228.2 235.0 254.4 264.4 14 All other liabilities 68.0 87.1 99.5 87.1 90.5 89.9 95.0 99.5 102.5 102.1 15 Capital, surplus, and undivided profits 67.1 71.4 75.7 71.4 69.5 73.2 72.3 75.7 79.7 82.5 16 Total liabilities and capital 564.9 591.8 666.9 591.8 602.9 621.9 638.1 666.9 691.4 709.1 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 Credit' Millions of dollars, amounts outstanding, end of period 1995 TTyyppee ooff ccrreeddiitt 11999922 11999933 11999944 Feb. Mar. Apr. May June July Seasonally adjusted 11 TToottaall 539,996 545,533 614,784 630,388 637,911 644,041 653,872r 660,714r 661,881 22 CCoonnssuummeerr 157,579 160,349 176,198 178,623 180,029 181,775 186,584r 188,665' 189,924 33 RReeaall eessttaattee22 72,473 71,965 78,770 80,326 81,210 81,877 82,843 84,198 84,978 44 BBuussiinneessss 309,944 313,219 359,816 371,439 376,672 380,389 384,446 387,850' 386,980 Not seasonally adjusted 5 Total 544,691 550,751 620,975 629,486 640,378 646,621 653,503r 661,910r 658,365 6 Consumer 159,558 162,770 178,999 178,601 180,653 181,598 184,616' 187,303' 187,829 7 Motor vehicles 57,259 56,057 61,609 61,067 61,256 62,435 63,689 65,162 65,861 8 Other consumer3 61,020 60,396 73,221 73,691 74,534 75,369 75,943 76,581 76,302 9 Securitized motor vehicles4. 29,734 36,024 31,897 31,304 32,155 31,261 32,117' 32,135' 32,381 10 Securitized other consumer4 11,545 10,293 12,272 12,539 12,708 12,533 12,867 13,425' 13,285 11 Real estate2 72,243 71,727 78,479 80,754 80,762 82,104 82,735 83,351 85,079 12 Business 312,890 316,254 363,497 370,131 378,963 382,919 386,152 391,256' 385,457 13 Motor vehicles 89,011 95,173 118,197 121,818 125,805 128,572 128,312 127,487 123,883 14 Retail5 20,541 18,091 21,514 21,577 21,652 22,370 21,228 22,142 22,945 15 Wholesale6 29,890 31,148 35,037 36,759 38,868 39,574 39,512 36,989 32,147 16 Leasing 38,580 45,934 61,646 63,482 65,285 66,628 67,572 68,356 68,791 17 Equipment 151,424 145,452 157,953 159,333 161,306 162,623 165,219 169,995 170,497 18 Retail 33,521 35,513 39,680 40,329 42,024 40,880 41,264 42,008 42,541 19 Wholesale6 8,680 8,001 9,678 9,462 8,913 9,661 10,643 11,725 12,107 20 Leasing 109,223 101,938 108,595 109,542 110,369 112,082 113,312 116,262 115,849 21 Other business7 60,856 53,997 61,495 63,339 64,815 64,426 64,099 64,365 63,849 22 Securitized business assets4 11,599 21,632 25,852 25,641 27,037 27,298 28,522 29,409' 27,228 23 Retail 1,120 2,869 4,494 4,035 4,404 4,937 5,224 4,989 4,784 24 Wholesale 5,756 10,584 14,826 15,465 16,653 16,561 17,676 18,310 16,474 25 Leasing 4,723 8,179 6,532 6,141 5,980 5,800 5,622 6,110' 5,970 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 1995 IItteemm 11999922 11999933 11999944 Feb. Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 158.1 163.1 170.4 175.6 173.3 174.7 178.1 181.7 169.4 170.4 2 Amount of loan (thousands of dollars) 118.1 123.0 130.8 135.6 132.6 134.6 136.3 137.7 130.4 130.6 3 Loan-to-price ratio (percent) 76.6 78.0 78.8 79.3 78.2 79.2 78.7 78.2 78.9 78.9 4 Maturity (years) 25.6 26.1 27.5 28.3 28.6 28.1 28.4 27.2 26.6 27.3 5 Fees and charges (percent of loan amount) 1.60 1.30 1.29 1.32 1.18 1.14 1.30 1.18 1.18 1.12 Yield (percent per year) 6 Contract rate1 7.98 7.03 7.26 8.07 8.02 7.96 7.79 7.54 7.58 7.56 7 Effective rate1'3 8.25 7.24 7.47 8.28 8.21 8.15 7.99 7.73 7.78 7.75 8 Contract rate (HUD series)4 8.43 7.37 8.58 8.79 8.60 8.44 7.84 7.80 7.98 7.91 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 8.46 7.46 8.68 9.05 8.60 8.56 8.03 8.00 8.09 8.03 10 GNMA securities6 7.71 6.65 7.96 8.38 8.08 7.96 7.53 7.24 7.27 7.49 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 158,119 190,861 222,057 223,137 223,956 226,197 228,078 232,534 235,882 238,850 12 FHAA'A insured 22,593 23,857 28,377 28,420 28,672 28,664 28,576 28,886 28,761 28,640 13 Conventional 135,526 167,004 194,499 195,439 195,998 198,161 200,004 204,022 207,391 210,227 14 Mortgage transactions purchased (during period) 75,905 92,037 62,389 1,802 2,390 3,709 3,787 6,575 5,657 5,688 Mortgage commitments (during period) 15 Issued7 74,970 92,537 54,038 1,683 3,372 3,277 6,085 5,605 4,512 6,284 16 To sell8 10,493 5,097 1,820 82 64 22 28 9 26 53 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)s 17 Total 33,665 55,012 72,693 75,184 77,313 79,147 81,008 85,532 88,874 91,544 18 FHA/VA insured 352 321 276 270 266 262 257 253 250 246 19 Conventional 33,313 54,691 72,416 74,914 77,047 78,885 80,751 85,278 88,624 91,298 Mortgage transactions (during period) 20 Purchases 191,125 229,242 124,697 5,537 4,609 4,530 10,982 7,001 7,316 9,594 21 Sales 179,208 208,723 117,110 4,806 3,546 3,805 10,479 5,326 6,074 8,161 22 Mortgage commitments contracted (during period)9 261,637 274,599 136,067 7,741 12,704 13,437 4,549 6,198 8,106 10,578 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 Financial Statistics • November 1995 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1994 1995 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999911 11999922 11999933 Q2 Q3 Q4 Ql Q2P 1 All holders 3,926,337r 4,056,233 4,229,592 4,315,839r 4,375,155' 4,426,606r 4,474,715r 4,527,103 By type of property 2 One- to four-family residences 2,781,327 2,963,391 3,149,634 3,235,939r 3,292,201' 3,344,791' 3,383,139' 3,431,841 3 Multifamily residences 306,551 295,417 291,985 295,013r 297,650' 296,902' 298,230' 300,629 4 Commercial 759,154 716,687 706,780 702,82 lr 702,679' 701,941' 709,942' 710,266 5 79,305r 80,738 81,194 82,066' 82,625' 82,971' 83,404' 84,367 By type of holder 6 Major financial institutions 1,846,726 1,769,187 1,767,835 1,763,227' 1,786,074' 1,815,810' 1,841,815' 1,865,145 7 Commercial banks2 876,100 894,513 940,444 956,840 981,365 1,004,280 1,024,854' 1,052,882 8 One- to four-family 483,623 507,780 556,538 569,512 592,021 611,697 625,378' 648,815 9 Multifamily 36,935 38,024 38,635 38,609 38,004 38,916 39,746' 40,519 10 Commercial 337,095 328,826 324,409 326,800 328,931 331,100 336,795' 339,983 11 Farm 18,447 19,882 20,862 21,918 22,408 22,567 22,936' 23,564 12 Savings institutions3 705,367 627,972 598,330 585,671 587,545 596,198 601,777' 598,876 13 One- to four-family 538,358 489,622 469,959 462,219 466,704 477,499 483,625' 481,434 14 Multifamily 79,881 69,791 67,362 66,281 65,532 64,400 63,778' 64,373 lb Commercial 86,741 68,235 60,704 56,872 55,017 54,011 54,085' 52,788 16 Farm 388 324 305 299 291 289 288' 281 17 Life insurance companies 265,258 246,702 229,061 220,716' 217,165' 215,332' 215,184' 213,387 18 One- to four-family 11,547 11,441 9,458 8,122' 7,984' 7,910' 7,892' 7,817 19 Multifamily 29,562 27,770 25,814 24,958' 24,534' 24,306' 24,250' 24,019 20 Commercial 214,105 198,269 184,305 178,194' 175,168' 173,539' 173,142' 171,493 21 Farm 10,044 9,222 9,484 9,442' 9,479' 9,577r 9,900r 10,058 22 Federal and related agencies 266,146 286,263 328,598 329,725 329,304 323,491 319,770 315,211 23 Government National Mortgage Association 19 30 22 12 12 6 15 10 24 One- to four-family 19 30 15 12 12 6 15 10 25 Multifamily 0 0 7 0 0 0 0 0 26 Farmers Home Administration4 41,713 41,695 41,386 41,370 41,587 41,781 41,857 41,917 27 One- to four-family 18,496 16,912 15,303 14,459 14,084 13,826 13,507 13,217 28 Multifamily 10,141 10,575 10,940 11,147 11,243 11,319 11,418 11,512 29 Commercial 4,905 5,158 5,406 5,526 5,608 5,670 5,807 5,949 30 Farm 8,171 9,050 9,739 10,239 10,652 10,966 11,124 11,239 31 Federal Housing and Veterans' Administrations 10,733 12,581 12,215 11,169 10,533 10,964 10,890 1100,,009988 32 One- to four-family 4,036 5,153 5,364 4,826 4,321 4,753 4,715 44,,883388 33 Multifamily 6,697 7,428 6,851 6,343 6,212 6,211 6,175 5,260 34 Resolution Trust Corporation 45,822 32,045 17,284 13,908 15,403 10,428 9,342 6,456 35 One- to four-family 14,535 12,960 7,203 6,045 6,998 5,200 4,755 2,870 36 Multifamily 15,018 9,621 5,327 4,230 4,569 2,859 2,494 1,940 37 Commercial 16,269 9,464 4,754 3,633 3,836 2,369 2,092 1,645 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 0 0 14,112 11,407 9,169 7,821 6,730 6,039 40 One- to four-family 0 0 2,367 1,706 1,241 1,049 840 731 41 Multifamily 0 0 1,426 1,701 2,090 1,595 1,310 1,135 42 Commercial 0 0 10,319 8,000 5,838 5,177 4,580 4,173 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 112,283 137,584 166,642 175,377 177,200 178,059 177,615 178,462 45 One- to four-family 100,387 124,016 151,310 159,437 161,255 162,160 161,780 162,674 46 Multifamily 11,896 13,568 15,332 15,940 15,945 15,899 15,835 15,788 47 Federal Land Banks 28,767 28,664 28,460 28,475 28,538 28,555 28,065 28,005 48 One- to four-family 1,693 1,687 1,675 1,675 1,679 1,671 1,651 1,648 49 Farm 27,074 26,977 26,785 26,800 26,859 26,885 26,414 26,357 50 Federal Home Loan Mortgage Corporation 26,809 33,665 48,476 48,007 46,863 45,876 45,256 44,224 51 One- to four-family 24,125 31,032 45,929 45,427 44,208 43,046 42,122 40,963 52 Multifamily 2,684 2,633 2,547 2,580 2,655 2,830 3,134 3,261 53 Mortgage pools or trusts5 1,250,666 1,425,546 1,553,818 1,652,999 1,682,421 1,703,076 1,714,357 1,737,483 54 Government National Mortgage Association 425,295 419,516 414,066 435,709 444,976 450,934 454,401 457,101 55 One- to four-family 415,767 410,675 404,864 426,363 435,511 441,198 444,632 446,855 56 Multifamily 9,528 8,841 9,202 9,346 9,465 9,736 9,769 10,246 57 Federal Home Loan Mortgage Corporation 359,163 407,514 446,029 479,555 482,987 486,480 488,723 496,139 58 One- to four-family 351,906 401,525 441,494 475,733 479,539 483,354 485,643 493,105 59 Multifamily 7,257 5,989 4,535 3,822 3,448 3,126 3,080 3,034 60 Federal National Mortgage Association 371,984 444,979 495,525 514,855 523,512 530,343 533,262 543,669 61 One- to four-family 362,667 435,979 486,804 505,730 514,375 520,763 523,903 533,091 62 Multifamily 9,317 9,000 8,721 9,125 9,137 9,580 9,359 10,578 63 Farmers Home Administration4 47 38 28 22 20 19 14 13 64 One- to four-family 11 8 5 4 4 3 2 2 65 Multifamily 0 0 0 0 0 0 0 0 66 Commercial 19 17 13 10 9 9 7 6 67 Farm 17 13 10 8 7 7 5 5 68 Private mortgage conduits 94,177 153,499 198,171 222,858 230,926 235,300 237,957 240,561 69 One- to four-family 84,000 132,000 164,000 179,500 182,300 183,600 184,400 187,000 70 Multifamily 3,698 6,305 8,701 11,514 13,891 14,925 15,743 15,745 71 Commercial 6,479 15,194 25,469 31,844 34,735 36,774 37,814 37,816 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others6 562,798r 575,237 579,341 569,887' 577,356' 584,229' 598,772' 609,264 74 One- to four-family 370,157 382,572 387,345 375,167' 379,964' 387,057' 398,279' 406,770 75 Multifamily 83,937 85,871 86,586 89,417' 90,924' 91,201' 92,137' 93,218 76 Commercial 93,541 91,524 91,401 91,943' 93,538' 93,292' 95,620' 96,413 77 15,164' 15,270 14,009 13,360' 12,929' 12,681' 12,736' 12,863 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 69 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 CREDIT' Millions of dollars, amounts outstanding, end of period 1995 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999922 11999933 11999944 Feb. Mar. Apr. May June' July Seasonally adjusted 1 Total 730,847 790,351 902,853 918,968 933,717 946,451r 959,593r 970,741 979,559 2 Automobile 257,436 280,566 317,237 321,175 323,502 326,430r 330,390' 333,164 337,561 3 Revolving 258,081 286,588 334,511 345,630 352,741 359,655r 367,117' 373,572 376,780 4 Other2 215,331 223,197 251,106 252,164 257,474 260,366 262,085 264,005 265,218 Not seasonally adjusted 5 Total 748,057 809,440 925,000 917,652 927,260 938,108r 951,096' 964,362 971,586 By major holder 6 Commercial banks 330,088 367,566 427,851 423,144 425,208 431,444 434,863 437,498 441,187 7 Finance companies 118,279 116,453 134,830 134,758 135,790 137,804 139,632 141,743 142,163 8 Credit unions 91,694 101,634 119,594 120,603 121,946 123,233 125,052 126,352 127,300 9 Savings institutions 37,049 37,855 38,468 37,835 37,519 37,499 37,500 37,501 38,001 10 Nonfinancial business 49,561 55,296 60,957 55,828 55,351 55,116 55,914 56,315 55,803 11 Pools of securitized assets 121,386 130,636 143,300 145,484 151,446 153,012' 158,135' 164,953 167,132 By major type of credit 12 Automobile 258,226 281,458 318,213 319,042 321,592 324,146' 328,932' 333,194 333366,,558877 n Commercial banks 109,623 122,000 141,851 141,801 141,857 142,014 142,865 144,761 146,071 14 Finance companies 57,259 56,057 61,609 61,067 61,256 62,435 63,689 65,162 65,861 15 Pools of securitized assets 33,888 39,481 34,918 34,312 35,172 35,319' 36,244' 36,690 37,307 16 Revolving 271,850 301,837 352,266 345,354 348,411 355,012' 362,283' 368,809 372,009 17 Commercial banks 132,966 149,920 180,183 175,574 175,800 180,609 183,006 182,950 184,238 18 Nonfinancial business 44,466 50,125 55,341 50,405 49,959 49,773 50,595 51,006 50,520 19 Pools of securitized assets4 74,921 79,878 94,376 96,613 101,571 103,188' 106,811' 112,609 114,338 20 Other 217,981 226,145 254,521 253,256 257,257 258,950 259,881 262,359 262,990 21 Commercial banks 87,499 95,646 105,817 105,769 107,551 108,821 108,992 109,787 110,878 22 Finance companies 61,020 60,396 73,221 73,691 74,534 75,369 75,943 76,581 76,302 23 Nonfinancial business 5,095 5,171 5,616 5,423 5,392 5,343 5,319 5,309 5,283 24 Pools of securitized assets 12,577 11,277 14,006 14,559 14,703 14,505 15,080 15,654 15,487 1. The Board's series on amounts of credit covers most short- and intermediate-term 3. Includes retailers and gasoline companies. credit extended to individuals that is scheduled to be repaid (or has the option of 4. Outstanding balances of pools upon which securities have been issued; these repayment) in two or more installments. Data in this table also appear in the Board's G.19 balances are no longer carried on the balance sheets of the loan originator. (421) monthly statistical release. For ordering address, see inside front cover. 5. Totals include estimates for certain holders for which only consumer credit totals are 2. Comprises mobile home loans and all other installment loans that are not included in available. automobile or revolving credit, such as loans for education, boats, trailers, or vacations. These loans may be secured or unsecured. 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT' Percent per year except as noted 1995 IItteemm 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June July INTEREST RATES Commercial banks2 1 48-month new car 9.29 8.09 8.12 n.a. 9.70 n.a. n.a. 9.78 n.a. n.a. 2 24-month personal 14.04 13.47 13.19 n.a. 14.10 n.a. n.a. 14.03 n.a. n.a. Credit card plan 3 All accounts n.a. n.a. 15.69 n.a. 16.14 n.a. n.a. 16.15 n.a. n.a. 4 Accounts assessed interest n.a. n.a. 15.77 n.a. 15.27 n.a. n.a. 16.23 n.a. n.a. Auto finance companies 5 New car 9.93 9.48 9.79 11.35 11.89 11.95 11.74 11.43 11.08 11.01 6 Used car 13.80 12.79 13.49 14.57 15.06 15.10 14.99 14.78 14.63 14.35 OTHER TERMS3 Maturity (months) 7 New car 54.0 54.5 54.0 53.9 54.1 54.5 54.6 54.4 53.9 54.1 8 Used car 47.9 48.8 50.2 52.0 52.0 52.1 52.2 52.2 52.3 52.4 Loan-to-value ratio 9 New car 89 91 92 92 92 92 92 92 92 92 10 Used car 97 98 99 99 99 99 100 99 99 100 Amount financed (dollars) 11 New car 13,584 14,332 15,375 16,068 15,774 15,826 16,029 16,155 16,083 16,086 12 Used car 9,119 9,875 10,709 11,185 11,181 11,220 11,505 11,396 11,518 11,637 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 Financial Statistics • November 1995 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS' Billions of dollars; quarterly data at seasonally adjusted annual rates 1993 \994' 1995 Transaction rMlpanrv nr .pprnr 11999900 11999911 11999922 11999933 11999944'' Q4 Ql Q2 Q3 Q4 Qlr Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.... 635.3 478.7r 540.6r 618.5r 602.4 660.0r 650.3 527.8 607.6 623.9 842.4 819.6 By sector and instrument 2 U.S. government 246.9 278.2 304.0 256.1 155.9 274.2 210.5 122.9 133.6 156.4 271.8 193.6 3 Treasury securities 238.7 292.0 303.8 248.3 155.7 266.5 211.8 118.2 130.7 162.1 273.0 192.0 4 Budget agency issues and mortgages 8.2 -13.8 .2 7.8 .2 7.7 -1.3 4.7 2.9 -5.7 -1.2 1.6 5 Private 388.4r 200.4r 236.7r 362.4r 446.6 385.8r 439.7 404.9 474.0 467.5 570.6 626.0 By instrument 6 Tax-exempt obligations 48.7 68.7 31.1 75.5 -29.9 27.3 13.1 -28.4 -46.4 -57.9 -57.4 -20.3 7 Corporate bonds 47.1 78.8 61.6' 75.2 22.0 67.4 35.4 35.9 14.2 2.7 41.4 119.5 8 Mortgages 199.5 161.4 123.9 155.7 187.2 148.5 166.4 170.3 221.0 191.3 241.1 163.2 9 Home mortgages 185.6 163.8 179.5 183.9 195.2 184.6 194.7 164.4 220.8 200.7 207.2 153.3 10 Multifamily residential 4.8 -3.1 -11.2 -6.0 1.7 -2.3 .4 4.4 6.6 -4.6 3.6 8.0 11 Commercial 9.3 .4 -45.5 -22.6 -11.4 -33.9 -29.3 -1.4 -8.6 -6.2 28.6 -1.9 12 Farm -.3 .4 1.1 .5 1.8 .2 .6 2.9 2.2 1.4 1.7 3.9 13 Consumer credit 15.6r -14.8' 13' 58.9r 121.2 no.r 68.7 122.8 131.6 161.5 100.3 147.9 14 Bank loans n.e.c .4 -40.9 -13.8 4.8r 71.4 26.9r 69.1 53.6 89.5 73.6 139.8 102.2 15 Commercial paper 9.7 -18.4 8.6 10.0 21.4 3.8 8.2 16.4 33.8 27.2 1.1 44.8 16 Other loans 61.5' -34.4r 11.9r -17.7 53.2 1.8r 78.9 34.3 30.2 69.2 104.3 68.6 By borrowing sector 17 Household 218.5 171.lr 214.2r 280.9r 353.5 335.0r 307.4 308.0 392.1 406.4 324.4 324.7 18 Nonfinancial business 123.9 —33.3r ,8r 18.5 137.1 33.8r 135.2 144.2 135.2 133.8 302.4 328.8 19 Farm 2.3 2.1 1.0 2.0 2.8 3.6 2.9 8.7 2.2 -2.4 .6 6.8 20 Nonfarm noncorporate 10.1 — 21.9' -43.5r —24.6r 15.5 — 15.3r 11.8 12.7 18.1 19.2 71.8 32.0 21 Corporate 111.4 -1.4' 43.2r 41.r 118.8 45.5r 120.6 122.7 115.0 117.0 230.0 289.9 22 State and local government 46.0 62.6 21.7r 63.0 -44.0 17.0 -2.9 -47.2 -53.4 -72.6 -56.2 -27.5 23 Foreign net borrowing in United States 23.9 14.8r 22.6r 68.8r -20.3 41.8r -98.0 -37.0 20.6 32.9 64.3 36.0 24 Bonds 21.4 15.0r 15.7r 81.3r 7.1 60.1 -2.6 -17.4 20.8 27.7 13.5 46.7 25 Bank loans n.e.c -2.9 3.1 2.3 .7 1.4 -6.3 6.0 -4.5 4.7 -.5 8.1 5.6 26 Commercial paper 12.3 6.4 5.2 -9.0 -27.3 -12.0 -101.8 -5.2 -8.1 5.9 37.9 -9.6 27 U.S. government and other loans -7.0 -9.8 -.6 -4.2 -1.6 ,0r .5 -9.9 3.3 -.2 4.9 -6.7 28 Total domestic plus foreign 659.2 493.4r 563.3r 687.3 582.1 701.8 552.3 490.9 628.2 656.8 906.7 855.6 Financial sectors 29 Total net borrowing by financial sectors 202.6 151.7r 239.2r 289.5r 456.3 364.3r 520.6 370.8 412.1 521.9 315.3 381.7 By instrument 30 U.S. government-related 167.4 145.7 155.8 164.2 284.3 143.3 336.8 254.7 243.1 302.4 125.4 186.1 31 Government-sponsored enterprises securities 17.1 9.2 40.3 80.6 176.9 53.4 160.0 146.6 152.1 249.0 62.9 127.2 32 Mortgage pool securities 150.3 136.6 115.6 83.6 112.1 89.9 196.0 108.1 91.0 53.4 62.5 59.0 33 Loans from U.S. government -.1 .0 .0 .0 -4.8 .0 -19.2 .0 .0 .0 .0 .0 34 Private 35.3 6.0r 83.4r 125.3' 172.1 221.0' 183.8 116.1 169.0 219.5 189.9 195.6 35 Corporate bonds 46.0r 66.8r 80.5r 118.6r 110.2 140.8r 158.1 95.4 95.9 91.2 150.3 145.3 36 Mortgages .6 .5 .6 3.6 9.8 5.5 9.8 12.4 12.0 4.9 5.1 4.8 37 Bank loans n.e.c 4.7 8.8 2.2 -14.0 -12.3 -18.0 -9.9 -27.7 -11.9 .5 17.8 10.1 38 Open market paper 8.6 -32.0 -.7 -6.2 41.6 76.0 36.6 3.6 42.3 84.0 40.3 33.3 39 Loans from Federal Home Loan Banks -24.7 -38.0 .8 23.3 22.8 16.8 -10.8 32.3 30.7 38.8 -23.6 2.2 By borrowing sector 40 Government-sponsored enterprises 17.0 9.1 40.2 80.6 172.1 53.4 140.8 146.6 152.1 249.0 62.9 127.2 41 Federally related mortgage pools 150.3 136.6 115.6 83.6 112.1 89.9 196.0 108.1 91.0 53.4 62.5 59.0 42 Private 35.3 6.0r 83.4' 125.3r 172.1 221.0r 183.8 116.1 169.0 219.5 189.9 195.6 43 Commercial banks -.7 -11.7 8.8 5.6 10.0 1.2 2.0 12.4 22.8 2.9 9.3 18.4 44 Bank holding companies -27.7 -2.5 2.3 8.8 10.3 12.2 3.5 10.1 11.5 16.0 13.4 20.3 45 Funding corporations 15.4 -6.5 13.2 2.9 24.2 36.7 48.8 -17.2 47.2 17.9 62.3 10.4 46 Savings institutions -30.2 -44.5 -6.7 11.1 12.8 8.8 -5.6 5.8 14.8 36.1 -19.2 -6.9 47 Credit unions .0 .0 .0 .2 .2 .1 .1 .2 .5 .2 -.3 -.1 48 Life insurance companies .0 .0 .0 .2 .3 .4 .0 .0 .0 1.3 .0 .1 49 Finance companies 23.8r 17.7 - 1.6r .2 50.2 16.3 63.3 67.0 16.9 53.7 82.5 61.1 50 Mortgage companies .0 -2.4 8.0 -1.0 -11.5 -10.4 -21.6 -18.2 -7.0 1.0 8.2 1.2 51 Real estate investment trusts (REITs) .8 1.2 .3 3.4 13.7 6.1 14.5 15.3 18.8 6.3 6.9 6.4 52 Brokers and dealers 1.5 3.7 2.7 12.0 .5 29.3 -9.9 .3 -7.6 19.3 -29.5 -.1 53 Issuers of asset-backed securities (ABSs) 52.3 51.0 56.3 81.8r 61.2 120.3 88.7 40.5 51.1 64.7 56.3 84.7 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 1993 1994r 1995 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999900 11999911 11999922 11999933 11999944rr Q4 QL Q2 Q3 Q4 Qlr Q2 All sectors 54 Total net borrowing, all sectors 861.8r 645.2r 802.5r 976.8r 1,038.4 1,066.1' 1,072.9 861.7 1,040.3 1,178.7 1,222.0 1,237.3 55 U.S. government securities 414.4 424.0 459.8 420.3 444.9 417.5 566.5 377.6 376.7 458.8 397.2 379.8 56 Tax-exempt securities 48.7 68.7 31.1 75.5 -29.9 27.3 13.1 -28.4 -46.4 -57.9 -57.4 -20.3 57 Corporate and foreign bonds 114.5r 160.6r 163.8r 275.1r 139.3 268.3' 190.9 113.8 130.9 121.7 205.1 311.5 58 Mortgages 200.1 161.9 124.5 159.2 197.0 154.0 176.2 182.7 233.0 196.2 246.2 168.0 59 Consumer credit 15.6r - 14.8r 7.3' 58.9' 121.2 110.1' 68.7 122.8 131.6 161.5 100.3 147.9 60 Bank loans n.e.c 2.2 -29.1 -9.4 -8.5' 60.6 2.6' 65.1 21.4 82.2 73.6 165.6 117.9 61 Open market paper 30.7 -44.0 13.1 -5.1 35.7 67.7 -57.0 14.8 68.0 117.1 79.3 68.5 62 Other loans 35.8r —82.2r 12.1r 1.3 69.6 18.6' 49.4 56.8 64.3 107.8 85.6 64.1 Funds raised through mutual funds and corporate equities 63 Total net share issues 19.7 215.4 296.0 440.1 162.1 429.51" 343.7 207.9 159.6 -62.9 49.6 146.6 64 Mutual funds 65.3 151.5 211.9 320.0 138.3 287.7 236.4 144.0 165.4 7.6 104.5 178.5 65 Corporate equities -45.6 64.0 84.1 120.1 23.7 141.8' 107.3 63.9 -5.7 -70.5 -54.9 -31.9 66 Nonfinancial corporations -63.0 18.3 27.0 21.3 -44.9 21.5 -9.6 -2.0 -50.0 -118.0 -68.4 -73.2 67 Financial corporations 10.0 15.1 26.4 38.3' 26.0 41.0' 48.4 20.0 21.2 14.3 .7 5.6 68 Foreign shares purchased in United States 7.4 30.7 30.7 60.5' 42.7 79.3' 68.5 45.9 23.1 33.2 12.8 35.7 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Financial Statistics • November 1995 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1993 1994 1995 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999900 11999911 11999922 11999933 11999944 Q4 QL Q2 Q3 Q4' QL' Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 861.8r 645.2r 802.5' 976.8r l,038.4r l,066.1r l,072.9r 861.7r l,040.3r 1,178.7 1,222.0 1,237.3 2 Private domestic nonfinancial sectors 189.9R -7.4R 75.9' 15.8' 234.9' 104.4' 288.8' 270.4' 141.9' 238.5 -33.8 -238.2 3 Households 157.C -39.6 74.2' 3.1' 317.4' 196.7' 337.0' 385.9' 186.2' 360.3 148.3 -157.1 4 Nonfarm noncorporate business -1.7 -3.7 -1.1 -3.2 -2.0 -3.5 -3.6 -1.8 -1.9 -.5 .9 .9 5 Nonfinancial corporate business -3.7 6.7 29.6' 14.5' 24.1' 12.2' 19.9' 12.2' 25.1' 39.2 6.2 26.6 6 State and local governments 38.3 29.2 -26.8 1.5 -104.6' -101.0 -64.4' -125.9' -67.6' -160.5 -189.2 -108.6 7 U.S. government 33.7 10.5 -11.9 -18.4 -24.2' -7.7' -46.5 -16.2 -9.3' -24.7 -13.0 -25.7 8 Foreign 85.5 26.6 101.2' 121.7' 132.1' 204.2' 123.9' 64.3' 132.2' 208.1 260.1 340.8 y Financial sectors 552.7R 615.4R 637.3' 857.7' 695.6' 765.2' 706.7' 543.2' 775.6' 756.8 1,008.8 1,160.5 10 Government sponsored enterprises 13.9 15.2 69.0 90.2 123.3 71.2 92.4 101.1 125.6 174.3 12.2 86.7 11 Federally related mortgage pools 150.3 136.6 115.6 83.6 112.1 89.9 196.0 108.1 91.0 53.4 62.5 59.0 12 Monetary authority 8.1 31.1 27.9 36.2 31.5 38.5 48.8 17.9 24.0 35.4 24.8 12.6 13 Commercial banking 125.1 80.8 95.3 142.2 162.0 188.1 184.7 109.1 191.1' 163.3 359.6 292.8 14 U.S. commercial banks 94.9 35.7 69.5 149.6 148.1 197.3 120.6 128.4 164.4' 178.9 177.5 212.6 15 Foreign banking offices 28.4 48.5 16.5 -9.8 11.2 -6.5 59.0 -21.5 22.1 -15.0 182.3 75.4 16 Bank holding companies -2.8 -1.5 5.6 .0 .9 -4.8 3.1 .2 2.7 -2.4 -1.9 3.2 17 Banks in U.S. affiliated areas 4.5 -1.9 3.7 2.4 1.9 2.1 2.1 1.9 1.9 1.8 1.7 1.7 18 Funding corporations 16.1 15.8 23.5 18.1 13.8 42.6 19.5 33.5 25.1 -23.0 22.3 -36.6 19 Thrift institutions -154.0 -123.5 -61.3 -1.7 34.9' -13.3 13.6 42.6 52.8' 30.5 29.4 5.4 20 Life insurance companies 94.4 83.2 79.1 105.1 58.1' 86.4 47.6' 6.4' 80.5' 98.1 109.9 91.1 21 Other insurance companies 26.5 32.6 12.8 33.3 21.1 32.1 27.9 20.8 16.0 19.7 13.0 14.9 22 Private pension funds 17.2 85.7 37.3 40.2 -42.4 -60.1 -97.7 -30.7 -17.6 -23.6 97.6 138.9 23 State and local government retirement funds 34.9 46.0 34.4 25.5 60.8 36.9 72.9 69.3 26.3 74.6 64.5 65.7 24 Finance companies 28.8r -9.8' 5.0' -9.0 68.2 22.6 72.1 49.8 58.9 91.8 95.7 56.1 25 Mortgage companies .0 11.2 .1 .0 -22.9 -13.3 -43.5 -36.3 -14.0 2.1 16.5 2.3 26 Mutual funds 41.4 90.3 123.7 169.6 7.6 138.9 61.7' 9.4' 24.2' -64.8 -10.1 25.2 27 Closed-end funds .2 14.7 17.4 10.2 3.5 7.7 8.3 3.2 1.4 1.0 .8 1.1 28 Money market funds 80.9 30.1 1.3 14.6 28.5 56.9 -45.0 32.2 50.0 76.7 25.5 138.2 29 Real estate investment trusts (REITs) -.7 -.7 1.1 .6 4.7 .2 6.6 6.6 5.5 .2 2.5 3.1 30 Brokers and dealers 2.8 17.5 -6.9 9.2 -34.0 -82.8 -55.7 -52.6 -19.3 -8.6 30.7 124.2 31 Asset-backed securities issuers (ABSs) 51.1 48.9 53.8 80.5' 57.8' 113.7' 87.9' 42.8' 46.3' 54.3 49.8 78.3 32 Bank personal trusts 15.9 10.0 8.0 9.5 7.1 8.9 8.9 10.2 7.7 1.4 1.6 1.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 33 Net flows through credit markets 861.8' 645.2r 802.5' 976.8r 1,038.4' 1,066.1' 1,072.9' 861.7r l,040.3r 1,178.7 1,222.0 1,237.3 Other financial sources 34 Official foreign exchange 2.0 -5.9 -1.6 .8 -5.8 2.2 -.2 -14.6 .2 -8.6 17.8 10.3 35 Special drawing rights certificates 1.5 .0 -2.0 .0 .0 .0 .0 .0 .0 .0 .0 .0 36 Treasury currency 1.0 .0 .2 .4 .7 .7 .7 .6 .8 .7 .7 .7 37 Life insurance reserves 25.7 25.7 27.3 35.2 20.1 35.5 20.0 10.6' 23.8 26.2 25.4 25.3 38 Pension fund reserves 165.1 360.3 249.7 309.2 103.6' 251.6 6.8' 102.6' 155.4' 149.6 393.6 311.2 39 Interbank claims 35.0r -3.4' 43.5' 50.9' 85.5' 4.7' 173.0' 165.8' -55.0' 58.0 27.4 119.4 40 Checkable deposits and currency 43.6r 86.3' 113.5' 117.3 -10.1 81.9 173.1 -66.1 -89.6' -57.7 117.7 103.0 41 Small time and savings deposits 63.7 1.5 -57.2 -70.3 -40.5 -36.6 2.5 -62.4 -57.2 -44.9 52.9 134.3 42 Large time deposits -66.1 -58.5 -73.2 -23.5 19.0 13.7 -39.6 -4.4 81.2 39.0 95.1 44.0 43 Money market fund shares 70.3 41.2 3.9 19.2 45.4 61.1 -35.1 68.5 49.9 98.4 16.6 275.4 44 Security repurchase agreements -24.2 -16.5 35.5 65.5 84.3 -14.4 23.0 176.4 82.8' 54.8 167.0 127.5 45 Foreign deposits 38.2 -16.7 -7.2 -11.7 30.1 32.8 16.0 16.9 23.2 64.3 5.0 10.0 46 Mutual fund shares 65.3 151.5 211.9 320.0 138.3 287.7 236.4' 144.0 165.4 7.6 104.5 178.5 47 Corporate equities -45.6 64.0 84.1 120.1 23.7' 141.8' 107.3' 63.9' -5.7' -70.5 -54.9 -31.9 48 Security credit 3.5 51.4 4.2 61.9 -2.3 86.5 29.9 -17.7 -62.3 40.9 -15.1 12.6 49 Trade debt 37.0 3.8' 41.1' 50.0' 93.4' 54.4' 36.6' 96.3 115.8' 125.0 74.7 65.3 50 Taxes payable -4.8 -6.2 8.5 4.6 3.0' 4.9 15.3' -14.4' 8.2' 3.0 20.9 -5.8 51 Noncorporate proprietors' equity -27. LR -4.2' 18.3' -11.7' -30.0' -27.5' -49.5' -25.0' -17.2' -28.3 -40.8 -13.1 52 Investment in bank personal trusts 29.7 16.1 -7.1 1.6 18.8 17.6 15.0 24.7 23.6 11.9 21.0 22.3 53 Miscellaneous 139.C 203.4' 270.2' 315.6' 269.6' 389.9' 386.7' 223.1' 320.1' 148.7 534.7 298.8 54 Total financial sources l,414.5r 1,539.0' 1,765.9' 2,332.1' l,885.5r 2,454.6' 2,190.7' l,750.6r l,803.7r 1,796.9 2,786.1 2,925.1 Floats not included in assets (-) 55 U.S. government checkable deposits 3.3 -13.1 .7 -1.5 -4.8 -15.5 -2.4 -1.4 15.2 -30.7 13.9 -19.0 56 Other checkable deposits 8.5 4.5 1.6 -1.3 -2.8 -6.2 .6 -1.1 -6.2 -4.3 -5.0 -5.4 57 Trade credit 9.1 9.7 4.5' 14.2' 5.6' 10.5' -27.7' 16.0' 29.4' 4.9 -18.0 -5.4 Liabilities not identified as assets (—) 58 Treasury currency .2 -.6 -.2 -.2 -.2 -.2 -.2 -.2 -.2 -.2 -.2 -.1 59 Interbank claims 1.6 26.2 -4.9 4.2 -2.7 24.0 -29.1 5.3 11.6' 1.2 -3.9 9.7 60 Security repurchase agreements -24.0 6.2 27.9 82.5 48.6' 22.8' 13.5' 117.0' 66.8' -3.0 87.6 -32.8 61 Taxes payable .1 1.3 14.0 1.0 -2.0' -8.6 .8' 1.4' 1.0' -11.1 -16.3 30.6 62 Miscellaneous -32.2r -31.6' -51.8' -44.9' 29.1' 23.0' 41.3' -170.0' 149.4' 95.6 -90.2 -122.3 63 Total identified to sectors as assets l,447.9r l,536.4r 1,774.2' 2,278.1r l,814.7r 2,404.6r 2,194.1' l,783.4r l,536.9r 1,744.5 2,818.2 3,069.9 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 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 1993 1994' 1995 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999911 11999922 11999933 11999944'' Q4 Ql Q2 Q3 Q4 Ql' Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 11,184.1r 11,727.9' 12,368.3r 12,970.5 12,368.3' 12,490.8 12,620.8 12,776.8 12,970.5 13,140.6 13,343.2 By sector and instrument 2 U.S. government 2,776.4 3,080.3 3,336.5 3,492.3 3,336.5 3,387.7 3,395.4 3,432.3 3,492.3 3,557.9 3,583.5 3 Treasury securities 2,757.8 3,061.6 3,309.9 3,465.6 3,309.9 3,361.4 3,368.0 3,404.1 3,465.6 3,531.5 3,556.7 4 Budget agency issues and mortgages 18.6 18.8 26.6 26.7 26.6 26.3 27.4 28.2 26.7 26.4 26.8 5 Private 8,407.7r 8,647.6' 9,031.8' 9,478.2 9,031.8' 9,103.1 9,225.3 9,344.5 9,478.2 9,582.7 9,759.7 By instrument 6 Tax-exempt obligations 1,108.6 1,139.7 1,215.2 1,185.2 1,215.2 1,217.6 1,209.9 1,200.9 1,185.2 1,170.2 1,164.6 7 Corporate bonds 1,086.9 1,154.5' 1,229.7' 1,251.7 1,229.7' 1,238.6 1,247.5 1,251.1 1,251.7 1,262.1 1,292.0 8 Mortgages 3,920.0 4,043.9 4,220.6 4,407.9 4,220.6 4,248.3 4,301.3 4,357.6 4,407.9 4,454.7 4,505.9 9 Home mortgages 2,780.0 2,959.6 3,149,6 3,344.8 3,149.6 3,184.4 3,235.9 3,292.2 3,344,8 3,383.1 3,431.8 10 Multifamily residential 304.8 293.6 289.0 290.7 289.0 289.1 290.2 291.9 290.7 291.6 293.6 11 Commercial 755.8 710.3 700.8 689.4 700.8 693.5 693.1 691.0 689.4 696.5 696.1 12 Farm 79.3 80.4 81.2 83.0 81.2 81.3 82.1 82.6 83.0 83.4 84.4 13 Consumer credit 191.2' 804.6' 863.5' 984.7 863.5' 859.6 891.6 929.4 984.7 988.7 1,026.6 14 Bank loans n.e.c 686.0 672.1 671.ff 748.3 677.0' 687.4 706.3 725.4 748.3 776.9 807.9 15 Commercial paper 98.5 107.1 117.8 139.2 117.8 129.9 135.7 138.7 139.2 149.8 162.5 16 Other loans 710.6r 725.7' 707.9' 761.1 707.9' 721.7 733.1 741.5 761.1 780.3 800.3 By borrowing sector 17 Household 3,784.5r 3,998.7' 4,285.8' 4,638.9 44,,228855..88'' 4,326.3 4,417.7 4,520.9 4,638.9 4,684.8 4,780.1 18 Nonfinancial business 3,712.1' 3,716.1' 3,750.1' 3,887.5 3,750.1' 3,782.5 3,825.8 3,852.5 3,887.5 3,960.8 4,050.0 19 Farm 135.0 136.0 138.3 141.2 138.3 136.7 141.5 143.1 141.2 138.9 143.4 20 Nonfarm noncorporate 1,116.9' 1,075.0' 1,050.4' 1,065.8 1,050.4' 1,052.6 1,056.3 1,060.2 1,065.8 1,083.0 1,091.5 21 Corporate 2,460.2' 2,505.1' 2,561.5' 2,680.5 2,561.5' 2,593.2 2,628.0 2,649.2 2,680.5 2,738.9 2,815.1 22 State and local government 911.1 932.8' 995.9' 951.8 995.9' 994.3 981.9 971.1 951.8 937.1 929.6 23 Foreign credit market debt held in United States 299.7r 313.1r 381.9r 361.6 381.9r 356.5 348.7 352.4 361.6 376.8 387.1 74 Bonds 130.5' 146.2' 227.4' 234.6 227.4' 226.8 222.4 227.6 234.6 237.9 249.6 25 Bank loans n.e.c 21.6 23.9 24.6 26.1 24.6 26.2 25.1 26.3 26.1 28.2 29.6 26 Commercial paper 81.8 77.7 68.7 41.4 68.7 43.3 42.0 39.9 41.4 50.9 48.5 27 U.S. government and other loans 65.9 65.3 61.1 59.6 61.1 60.3 59.2 58.6 59.6 59.8 59.5 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign ll,483.8r 12,041.0r 12,750.2' 13,332.2 12,750.2' 12,847.3 12,969.5 13,129.2 13,332.2 13,517.4 13,730.4 Financial sectors 79 Total credit market debt owed by financial sectors 2,751.0r 3,005.7r 3,300.6' 3,762.2 3,300.6' 3,426.5 3,525.7 3,626.8 3,762.2 3,834.1 3,936.3 By instrument 30 US. government-related 1,564.2 1,720.0 1,884.1 2,168.4 1,884.1 1,961.5 2,030.5 2,089.8 2,168.4 2,192.7 2,245.0 31 Government-sponsored enterprises securities 402.9 443.1 523.7 700.6 523.7 563.7 600.3 638.3 700.6 716.3 748.1 32 Mortgage pool securities 1,156.5 1,272.0 1,355.6 1,467.8 1,355.6 1,397.8 1,430.1 1,451.5 1,467.8 1,476.4 1,496.9 33 Loans from U.S. government 4.8 4.8 4.8 .0 4.8 .0 .0 .0 .0 .0 .0 34 Private 1,186.8' 1,285.8' 1,416.5' 1,593.8 1,416.5' 1,465.1 1,495.2 1,537.0 1,593.8 1,641.4 1,691.3 35 CCoorrppoorraattee bboonnddss 638.9' 725.8' 844.4' 952.1 844.4' 882.0 906.6 930.4 952.1 990.2 1,027.3 36 MMoorrttggaaggeess 4.8 5.4 8.9 18.7 8.9 11.4 14.5 17.5 18.7 20.0 21.2 37 Bank loans n.e.c 78.4 80.5 66.5 54.3 66.5 62.4 55.3 52.4 54.3 57.1 59.4 38 Open market paper 385.7 394.3 393.5 442.8 393.5 408.8 410.3 420.5 442.8 454.1 462.8 39 Loans from Federal Home Loan Banks 79.1 79.9 103.1 125.9 103.1 100.4 108.5 116.2 125.9 120.0 120.5 By borrowing sector 40 Government-sponsored enterprises 407.7 447.9 528.5 700.6 528.5 563.7 600.3 638.3 700.6 716.3 748.1 41 Federally related mortgage pools 1,156.5 1,272.0 1,355.6 1,467.8 1,355.6 1,397.8 1,430.1 1,451.5 1,467.8 1,476.4 1,496.9 42 Private financial sectors 1,186.8' 1,285.8' 1,416.5' 1,593.8 1,416.5' 1,465.1 1,495.2 1,537.0 1,593.8 1,641.4 1,691.3 43 Commercial banks 65.0 73.8 79.5 89.5 79.5 78.4 82.1 87.5 89.5 90.3 95.4 44 Bank holding companies 112.3 114.6 123.4 133.6 123.4 124.2 126.8 129.6 133.6 137.0 142.0 45 Funding corporations 139.1 161.6 169.9 199.3 169.9 190.7 191.5 200.6 199.3 221.2 229.1 46 Savings institutions 94.6 87.8 99.0 111.7 99.0 97.6 99.0 102.7 111.7 106.9 105.2 47 Credit unions .0 .0 .2 .5 .2 .3 .3 .4 .5 .4 .3 48 Life insurance companies .0 .0 .2 .6 .2 .3 .3 .3 .6 .6 .6 49 Finance companies 391.9' 390.4' 390.5 440.7 390.5 401.9 414.2 420.9 440.7 456.7 467.3 50 Mortgage companies 22.2 30.2 29.2 17.8 29.2 23.8 19.3 17.5 17.8 19.8 20.1 51 Real estate investment trusts (REITs) 13.6 13.9 17.4 31.1 17.4 21.0 24.8 29.5 31.1 32.8 34.4 5? Brokers and dealers 19.0 21.7 33.7 34.3 33.7 31.3 31.3 29.4 34.3 26.9 26.8 53 Issuers of asset-backed securities (ABSs) 329.1 391.7 473.5' 534.7 473.5' 495.7 505.8 518.6 534.7 548.8 570.0 All sectors 54 Total credit market debt, domestic and foreign 14,234.8r 15,046.7' 16,050.7' 17,094.3 16,050.7r 16,273.8 16,495.2 16,756.0 17,094.3 17,351.5 17,666.7 55 US. government securities 4,335.7 4,795.5 5,215.8 5,660.7 5,215.8' 5,349.2 5,425.9 5,522.1 5,660.7 5,750.6 5,828.5 56 Tax-exempt securities 1,108.6 1,139.7 1,215.2 1,185.2 1,215.2' 1,217.6 1,209.9 1,200.9 1,185.2 1,170.2 1,164.6 57 CCooiippoorraattee aanndd ffoorreeiiggnn bboonnddss 1,856.3' 2,026.4' 2,301.5' 2,438.4 2,301.5' 2,347.3 2,376.5 2,409.1 2,438.4 2,490.2 2,568.9 58 3,924.8 4,049.3 4,229.6 4,426.6 4,229.6' 4,259.7 4,315.8 4,375.2 4,426.6 4,474.7 4,527.1 59 Consumer credit 797.2' 804.6' 863.5' 984.7 863.5' 859.6 891.6 929.4 984.7 988.7 1,026.6 60 Bank loans n.e.c 785.9 776.6 768.2' 828.8 768.2' 776.0 786.7 804.0 828.8 862.1 896.9 61 Open market paper 565.9 579.0 580.0 623.5 580.0' 582.0 587.9 599.2 623.5 654.7 673.8 62 Other loans 860.4' 875.7' 877.0' 946.6 877.0' 882.5 900.8 916.2 946.6 960.1 980.4 Digitized for FR1. ADSatEa iRn this table also appear in the Board's Z.l (780) quarterly statistical release, http://fraser.statbloleus Lis.2f ethdro.uogrhg L/. 4. For ordering address, see inside front cover. Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics • November 1995 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES' Billions of dollars except as noted, end of period 1993 1994 1995 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999911 11999922 11999933 11999944 Q4 Ql Q2 Q3 Q4 Ql' Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 14,234.8R 15,046.7' 16,050.7' 17,094.3' 16,050.7' 16,273.8R 16,495.2' 16,756.0R 17,094.3' 17351.5 17,666.7 2 Private domestic nonfinancial sectors 2,240. lr 2,320.1' 2,351.5' 2,623.2' 2,351.5' 2,397.5' 2,450.6' 2,497.3' 2,623.2' 2,586.1 2,511.4 3 Households 1,446.5 1,524.8' 1,541.7' 1,926.4' 1,541.7' 1,640.7' 1,717.1' 1,779.9' 1,926.4' 1,946.9 1,885.7 4 Nonfarm noncorporate business 44.1 42.9 39.7 37.7 39.7 38.8 38.4 37.9 37.7 38.0 38.2 Nonfinancial corporate business 196.2 225.8' 244.9' 269.0' 244.9' 240.0' 245.9' 249.7' 269.0' 259.8 269.3 6 State and local governments 553.3 526.5 525.2 390.0' 525.2 478.0' 449.2 429.8' 390.0' 341.5 318.1 7 U.S. government 246.9 235.0 230.7 206.5' 230.7 219.0 215.4 212.6 206.5' 203.2 197.1 8 Foreign 958.0R 1,055.0' 1,172.2' 1,272.7' 1,172.2' 1,203.0 1,218.4' 1,254.4' 1,272.7' 1,336.5 1,421.4 9 Financial sectors 10,789.8' 11,436.6' 12,296.3' 12,991.9' 12,296.3' 12,454.3' 12,610.7' 12,791.7' 12,991.9' 13,225.8 13,536.8 10 Government-sponsored enterprises 390.7 459.7 549.8 673.2 549.8 572.0 597.9 629.4 673.2 675.3 697.7 11 Federally related mortgage pools 1,156.5 1,272.0 1,355.6 1,467.8 1,355.6 1,397.8 1,430.1 1,451.5 1,467.8 1,476.4 1,496.9 12 Monetary authority 272.5 300.4 336.7 368.2 336.7 341.5 351.6 356.8 368.2 367.1 375.7 13 Commercial banking 2,853.3 2,948.6 3,090.8 3,252.8 3,090.8 3,120.2 3,156.2 3,204.1' 3,252.8 3,326.1 3,407.9 14 U.S. commercial banks 2,502.5 2,571.9 2,721.5 2,869.6 2,721.5 2,743.8 2,780.3 2,822.3' 2,869.6 2,906.5 2,963.5 15 Foreign banking offices 319.2 335.8 326.0 337.1 326.0 331.8 330.8 335.5 337.1 373.6 397.2 16 Bank holding companies 11.9 17.5 17.5 18.4 17.5 18.2 18.3 19.0 18.4 17.9 18.7 17 Banks in U.S. affiliated areas 19.7 23.4 25.8 27.8 25.8 26.4 26.8 27.3 27.8 28.2 28.6 18 Funding corporations 51.5 75.0 93.1 106.9 93.1 97.9 106.3 112.6 106.9 112.4 103.3 19 Thrift institutions 1,192.6 1,134.5 1,132.7 1,167.6' 1,132.7 1,134.2 1,146.1 1,160.3' 1,167.6' 1,173.1 1,175.7 20 Life insurance companies 1,199.6 1,278.8 1,383.9 1,442.1' 1,383.9 1,^02.7' 1,407.6' 1,428.1' 1,442.1' 1,476.8 1,503.0 21 Other insurance companies 376.6 389.4 422.7 443.8 422.7 429.6 434.8 438.8 443.8 447.0 450.8 22 Private pension funds 693.0 730.4 770.6 728.2 770.6 746.2 738.5 734.1 728.2 752.6 787.3 23 State and local government retirement funds 479.9 514.3 542.6 603.3 542.6 560.8 578.1 584.7 603.3 619.5 635.9 24 Finance companies 487.5' 492.6' 482.8 551.0 482.8 494.5 511.3 524.1 551.0 568.5 586.7 25 Mortgage companies 60.3 60.5 60.4 37.5 60.4 49.5 40.4 37.0 37.5 41.6 42.2 26 Mutual funds 450.5 574.2 743.8 751.4 743.8 759.2 761.5 767.6' 751.4 748.9 755.2 27 Closed-end funds 50.3 67.7 77.9 81.4 77.9 80.0 80.8 81.1 81.4 81.6 81.9 28 Money market funds 402.7 404.1 418.7 447.1 418.7 422.0 421.4 423.4 447.1 467.9 494.0 29 Real estate investment trusts (REITs) 7.0 8.1 8.6 13.3 8.6 10.3 11.9 13.3 13.3 13.9 14.7 30 Brokers and dealers 124.0 117.1 126.3 92.3 126.3 112.4 99.3 94.5 92.3 100.0 131.0 31 Asset-backed securities issuers (ABSs) 317.8 377.9 458.4' 516.1' 458.4' 480.3' 491.0' 502.6' 516.1' 528.6 548.2 32 Bank personal trusts 223.5 231.5 240.9 248.0 240.9 243.2 245.7 247.7 248.0 248.4 248.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 33 Total credit market debt 14,234.8' 15,046.7' 16,050.7' 17,094.3' 16,050.7' 16,273.8' 16,495.2' 16,756.0' 17,094.3R 17,351.5 17,666.7 Other liabilities 34 Official foreign exchange 55.4 51.8 53.4 53.2 53.4 56.4 54.9 55.5 53.2 64.1 67.1 35 Special drawing rights certificates 10.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 36 Treasury currency 16.3 16.5 17.0 17.6 17.0 17.1 17.3 17.5 17.6 17.8 18.0 37 Life insurance reserves 405.7 433.0 468.2 488.4 468.2 473.2 475.9' 481.8' 488.4 494.7 501.0 38 Pension fund reserves 4,138.3 4,516.5 4,974.7 5,017.0' 4,974.7 4,896.4' 4,898.5' 5,013.4' s.on.o' 5,252.7 5,472.4 39 Interbank claims 96.4 132.6' 183.9' 270.3' 183.9' 215.8' 230.7' 243.1' 270.3' 266.3 267.0 40 Deposits at financial institutions 5,045.1' 5,059.1 5,155.5 5,283.8 5,155.5 5,163.7 5,186.2 5,211.8r 5,283.8 5,369.1 5,531.6 41 Checkable deposits and currency 1,020.9' 1,134.4 1,251.7 1,241.6 1,251.7 1,220.5 1,229.7 1,204.8' 1,241.6 1,193.5 1,245.4 42 Small time and savings deposits 2,350.7 2,293.5 2,223.2 2,182.7 2,223.2 2,233.8 2,214.1 2,198.7 2,182.7 2,206.3 2,235.5 43 Large time deposits 488.4 415.2 391.7 410.7 391.7 382.6 379.0 402.2 410.7 435.2 444.0 44 Money market fund shares 539.6 543.6 562.7 608.2 562.7 579.7 573.9 583.5 608.2 638.9 684.1 45 Security repurchase agreements 355.8 392.3 457.8 542.1 457.8 474.9 512.9 540.2 542.1 595.4 620.5 46 Foreign deposits 289.6 280.1 268.4 298.5 268.4 272.4 276.6 282.4 298.5 299.7 302.2 47 Mutual fund shares 813.9 1,042.1 1,446.3 1,562.9' 1,446.3 1,483.9' 1,506.9' 1,587.7' 1,562.9' 1,607.2 1,747.1 48 Security credit 188.9 217.3 279.3 277.0 279.3 282.8 278.0 263.2 277.0 268.8 271.6 49 Trade debt 936.1' 977.4 1,027.4' 1,120.8' 1,027.4' 1,024.9' 1,049.2' 1,086.0' 1,120.8' 1,127.6 1,144.4 50 Taxes payable 71.2 79.6 84.2 87.3' 84.2 89.2' 82.0' 86.3' 87.3' 93.5 88.5 51 Investment in bank personal trusts 608.3 629.6 660.9 670.0 660.9 655.2 650.1 671.5 670.0 707.2 745.7 52 Miscellaneous 2,991.9' 3,176.7' 3,430.7' 3,746.3' 3,430.7' 3,560.9' 3,600.2' 3,701.5' 3,746.3' 3,872.5 3,907.9 53 Total liabilities 29,612.4' 31,386.8' 33,840.1' 35,696.9' 33,840.1R 34,201.4' 34,533.1' 35,183.2' 35,696.9' 36,501.1 37,437.3 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 22.3 19.6 20.1 21.1 20.1 20.4 20.8 21.0 21.1 22.7 22.9 55 Corporate equities 4,863.6 5,462.9 6,278.5' 6,293.4' 6,278.5' 6,142.6' 5,965.8' 6,228.7' 6,293.4' 6,835.8 7,393.0 56 Household equity in noncorporate business 2,448.7' 2,413.7' 2,425.4' 2,512.8' 2,425.4' 2,474.2' 2,502.7' 2,526.6' 2,512.8' 2,525.7 2,528.5 Floats not included in assets (—) 57 U.S. government checkable deposits 3.8 6.8 5.6 3.4 5.6 .3 .9 1.2 3.4 4.2 2.0 58 Other checkable deposits 40.4 42.0 40.7 38.0 40.7 36.3 38.7 30.6 38.0 32.3 33.7 59 Trade credit -130.6' -125.9' -107.1' -101.4' -107.1' -127.1' -134.2' -126.9' -101.4' -120.3 -133.0 Liabilities not identified as assets (-) 60 Treasury currency -4.7' -4.9 -5.1 -5.4 -5.1 -5.2 -5.2 -5.3 -5.4 -5.4 -5.4 61 Interbank claims -4.2 -9.3 -4.7 -6.5 -4.7 -7.7 -7.4 -3.4' -6.5 -2.7 -2.6 62 Security repurchase agreements 9.2 38.1 120.5' 169.1' 120.5' 135.9' 162.5' 189.3' 169.1' 203.3 192.0 63 Taxes payable 17.8 25.2 26.2 24.2' 26.2 15.5' 21.3' 22.0' 24.2' 6.6 21.2 64 Miscellaneous -320.7' -378.2' -457.3' -347.8' -457.3' -398.7' -387.1' -395.6' -347.8' -382.3 -390.3 65 Total identified to sectors as assets 37,336.0' 39,689.2' 42,945.3' 44,750.6' 42,945.3' 43,189.2' 43,332.9' 44,247.7' 44,750.6' 46,149.7 47,664.3 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 1995 MMeeaassuurree 11999922 11999933 11999944 Dec. Jan. Feb. Mar. Apr. May June' July' Aug. 1 Industrial production1 107.6 112.0 118.1 121.7 122.0 122.1 122.0 121.2 121.4r 121.2 121.6 123.0 Market groupings 2 Products, total 106.5 110.7 115.9 118.7 119.1 119.1 118.9 118.0 118.2' 111188..44 118.5 111199..99 3 Final, total 109.0 113.4 118.4 121.2 121.6 121.8 121.6 121.0 121.1' 121.4 121.6 123.1 4 Consumer goods 105.9 109.4 113.2 115.5 115.7 115.7 114.9 114.4 114.4' 114.6 114.3 116.1 5 Equipment 113.4 119.3 126.5 130.1 130.9 131.2 132.0 131.3 131.4 132.0 133.1 134.1 6 Intermediate 98.8 102.4 108.1 110.9 111.3 110.9 110.7 108.9 109.4' 109.5 109.1 110.1 7 Materials 109.2 114.1 121.5 126.3 126.5 126.7 126.7 126.1 126.3' 125.6 126.4 127.7 Industry groupings 8 Manufacturing 108.0 112.9 119.7 124.2 124.5 124.2 112244..22 123.3 112233..22 112233..11 112233..11 112244..33 9 Capacity utilization, manufacturing (percent)2. . 79.2 80.9 83.4 85.2 85.2 84.7 84.4 83.5 83.1 82.8 82.5 83.0 10 Construction contracts3 97.4r 105.3r 114.4r 109.0' 111.0r 115.0' 115.0 106.0' 116.0' 119.0 111.0 118.0 11 Nonagricultural employment, total4 106.5 108.4 111.3 113.4 113.6 113.9 114.1 114.1 114.0 114.3 114.3 114.6 12 Goods-producing, total 94.2 94.3 95.6 98.2 98.5 98.6 98.8 98.6 98.2 98.2 97.9 97.9 13 Manufacturing, total 95.3 94.8 95.1 97.2 97.4 97.5 97.5 97.4 97.1 97.0 96.5 96.6 14 Manufacturing, production workers 94.9 94.9 96.1 98.7 98.9 99.1 99.1 99.0 98.6 98.3 97.8 97.9 15 Service-producing 110.5 112.9 116.3 118.3 118.4 118.8 119.0 119.0 119.1 119.4 119.6 119.9 16 Personal income, total 135.6 141.4 150.0 154.7 156.0 156.8 157.6 157.9 157.6 158.3 159.3 n.a. 17 Wages and salary disbursements 131.6 136.2 145.0 149.0 150.0 150.7 150.9 151.7 150.6' 151.7 153.0 n.a. 18 Manufacturing 118.0 120.0 126.0 128.6 129.0 131.0 130.6 128.9 128.1 128.5 128.6 n.a. 19 Disposable personal income 137.0 142.5 150.8 155.8 156.8 157.6 158.4 157.0 158.2 158.8 159.7 n.a. 20 Retail sales5 126.4 134.7 145.2 150.0 150.7 149.6 150.6 150.5 152.2 153.5 152.9 153.8 Prices6 71 Consumer (1982-84=100) 140.3 144.5 148.2 149.7 150.3 150.9 151.4 151.9 152.2 152.5 152.5 152.9 22 Producer finished goods (1982=100) 123.2 124.7 125.5 126.2 126.6 126.9 127.1 127.6 128.0 128.2 128.3 128.1 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. 5. Based on data from US. Department of Commerce, Survey of Current Business. For the ordering address, see the inside front cover. The latest historical revision of the 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the industrial production index and the capacity utilization rates was released in November price indexes can be obtained from the U.S. Department of Labor, Bureau of Labor 1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve Statistics, Monthly Labor Review. Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for production index, see "Industrial Production: 1989 Developments and Historical Revi- series mentioned in notes 3 and 6, can also be found in the Survey of Current Business. sion," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. Figures for industrial production for the latest month are preliminary, and many figures 2. Ratio of index of production to index of capacity. Based on data from the Federal for the three months preceding the latest month have been revised. See "Recent Develop- Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources. ments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 3. Index of dollar value of total construction contracts, including residential, nonresi- 1990), pp. 411-35. See also "Industrial Production Capacity and Capacity Utilization dential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605. Dodge Division. 4. Based on data from U.S. Department of Labor, Employment and Earnings. Series covers employees only, excluding personnel in the armed forces. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted 1995 CCaatteeggoorryy 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June' July' Aug. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 126,982 128,040 131,056 132,136 132,308 132,511 132,737 131,811 131,869 132,519 132,211 2 Nonagricultural industries3 114,391 116,232 119,651 121,064 121,469 121,576 121,478 120,962 121,034 121,550 121,417 3 Agriculture 3,207 3,074 3,409 3,575 3,656 3,698 3,594 3,357 3,451 3,409 3,362 Unemployment 4 Number 9,384 8,734 7,996 7,498 7,183 7,237 7,665 7,492 77,,338844 77,,555599 77,,443311 5 Rate (percent of civilian labor force) 7.4 6.8 6.1 5.7 5.4 5.5 5.8 5.7 5.6 5.7 5.6 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 108,604 110,525 113,423 115,810 116,123 116,302 116,310 116,248 116,547 116,553 116,802 7 Manufacturing 18,104 18,003 18,064 18,502 18,523 18,525 18,506 18,456 18,428 18,340 18,352 8 Mining 635 611 604 590 588 589 583 582 582 577 576 9 Contract construction 4,492 4,642 4,916 5,201 5,213 5,256 5,242 5,190 5,230 5,227 5,229 10 Transportation and public utilities 5,721 5,787 5,842 6,129 6,156 6,175 6,184 6,177 6,192 6,194 6,211 11 25,354 25,675 26,362 27,011 27,069 27,047 27,062 27,045 27,118 27,187 27,174 V Finance 6,602 6,712 6,789 6,927 6,929 6,938 6,924 6,925 6,930 6,935 6,950 13 29,052 30,278 31,805 32,228 32,404 32,524 32,548 32,630 32,784 32,810 32,954 14 Government 18,653 18,817 19,041 19,222 19,241 19,248 19,261 19,243 19,283 19,283 19,356 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 • November 1995 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1994 1995 1994 1995 1994 1995 Q3 Q4 Ql Q2r Q3 Q4 Ql Q2 Q3 Q4 Ql Q2r Output (1987 = 100) Capacity (percent of 1987 output) Capacity utilization rate (percent)2 1 Total industry 118.8 120.5 122.0 121.3 140.9 141.9 143.1 144.5 84.3 84.9 85.2 83.9 2 Manufacturing 120.5 122.7 124.3 123.2 144.2 145.3 146.6 148.2 83.6 84.5 84.7 83.1 3 Primary processing3 115.9 118.4 119.3 117.1 131.6 132.3 133.2 134.2 88.1 89.5 89.5 87.3 4 Advanced processing4 122.7 124.8 126.6 126.1 150.0 151.3 152.9 154.7 81.8 82.5 82.8 81.5 5 Durable goods 126.5 129.4 131.6 130.4 151.6 153.1 154.9 157.1 83.4 84.6 84.9 83.0 6 Lumber and products 106.6 107.9 107.6 103.8 116.0 116.5 117.1 118.0 91.9 92.7 91.9 88.0 7 Primary metals 114.1 119.4 120.4 116.8 125.2 125.4 126.7 127.5 91.1 95.2 95.0 91.6 8 Iron and steel 115.8 123.3 125.4 120.6 128.4 128.8 130.9 131.7 90.2 95.8 95.9 91.6 9 Nonferrous 111.4 113.9 113.7 111.6 120.5 120.5 120.9 121.6 92.4 94.5 94.1 91.8 10 Industrial machinery and equipment 162.6 167.5 171.5 173.0 181.6 184.1 187.8 192.6 89.6 91.0 91.3 89.8 11 Electrical machinery 163.5 169.4 174.0 177.0 184.1 188.5 193.8 199.9 88.8 89.9 89.8 88.6 12 Motor vehicles and parts 135.0 141.5 145.9 136.0 160.3 162.2 164.2 166.5 84.2 87.2 88.8 81.7 13 Aerospace and miscellaneous transportation equipment, . , 82.1 80.8 81.5 82.1 129.4 129.1 128.8 128.5 63.5 62.6 63.3 63.9 14 Nondurable goods 113.8 115.3 116.1 115.2 135.5 136.3 137.1 138.0 84.0 84.6 84.7 83.5 15 Textile mill products 108.9 111.6 111.8 108.1 121.4 122.0 122.7 123.5 89.7 91.4 91.1 87.6 16 Paper and products 118.5 120.6 120.3 119.6 127.1 127.7 128.4 129.3 93.2 94.4 93.6 92.5 17 Chemicals and products 124.4 126.0 129.7 127.7 153.3 154.7 156.2 157.6 81.1 81.4 83.1 81.1 18 Plastics materials 126.9 130.2 134.3 128.8 130.8 131.6 132.6 133.8 97.0 98.9 101.3 96.2 19 Petroleum products 104.9 106.5 107.8 106.4 115.2 115.1 115.1 115.3 91.1 92.5 93.7 92.3 20 Mining 100.1 99.2 100.3 100.5 111.5 111.4 111.4 111.4 89.8 89.0 90.0 90.2 21 Utilities 118.1 116.3 118.2 120.6 135.4 135.8 136.3 136.8 87.2 85.6 86.8 88.2 22 Electric 118.2 117.3 118.5 120.9 133.1 133.6 134.1 134.7 88.8 87.8 88.4 89.7 1973 1975 Previous cycle5 Latest cycle6 1994 1995 High Low High Low High Low Aug. Mar. Apr. Mayr Juner July Aug.? Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.8 84.9 78.0 84.5 84.9 84.1 84.0 83.7 83.7 84.3 2 Manufacturing 88.9 70.8 87.3 70.0 85.2 76.6 83.8 84.4 83.5 83.1 82.8 82.5 83.0 3 Primary processing3 92.2 68.9 89.7 66.8 89.0 77.9 88.3 89.0 88.0 87.5 86.4 86.2 86.5 4 Advanced processing4 87.5 72.0 86.3 71.4 83.5 76.2 82.1 82.5 81.8 81.4 81.4 81.0 81.6 5 Durable goods 88.8 68.5 86.9 65.0 84.0 73.7 83.7 84.6 83.4 82.8 82.7 82.6 83.3 6 Lumber and products 90.1 62.2 87.6 60.9 93.3 76.3 91.0 89.6 89.1 87.1 87.8 86.7 88.3 7 Primary metals 100.6 66.2 102.4 46.8 92.8 74.0 90.7 94.9 92.6 92.3 90.0 90.0 90.7 8 Iron and steel 105.8 66.6 110.4 38.3 95.7 72.1 88.0 96.2 93.3 92.7 88.8 88.1 89.4 9 Nonferrous 92.9 61.3 90.5 62.2 88.7 75.0 94.2 93.4 91.8 91.9 91.6 92.6 92.6 10 Industrial machinery and equipment 96.4 74.5 92.1 64.9 84.0 72.5 89.5 90.8 90.2 90.0 89.3 89.8 90.2 11 Electrical machinery 87.8 63.8 89.4 71.1 84.9 76.6 89.2 89.5 88.5 88.5 88.7 89.4 89.7 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 85.1 57.6 86.1 87.8 83.9 80.7 80.5 78.9 81.9 13 Aerospace and miscellaneous transportation equipment 77.0 66.6 81.1 66.9 88.4 79.4 63.6 64.0 64.1 63.8 63.8 63.5 63.8 14 Nondurable goods 87.9 71.8 87.0 76.9 86.7 80.4 84.1 84.3 83.8 83.7 83.0 82.6 82.7 15 Textile mill products 92.0 60.4 91.7 73.8 92.1 78.9 89.8 90.4 90.2 88.7 83.7 83.6 84.0 16 Paper and products 96.9 69.0 94.2 82.0 94.8 86.5 94.6 93.7 92.7 93.8 91.1 92.6 91.7 17 Chemicals and products 87.9 69.9 85.1 70.1 85.9 78.9 81.4 82.5 81.3 81.1 80.7 80.7 80.8 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 97.3 97.5 97.1 97.0 94.6 19 Petroleum products 96.7 81.1 89.5 68.2 88.5 83.7 91.4 94.2 92.8 92.1 92.0 92.3 91.0 20 Mining 94.4 88.4 96.6 80.6 86.5 86.0 89.7 89.9 90.4 90.2 90.1 90.8 89.5 21 Utilities 95.6 82.5 88.3 76.2 92.6 83.2 87.8 87.1 86.4 89.2 88.9 91.9 96.3 22 Electric 99.0 82.7 88.3 78.7 94.8 86.5 89.0 88.8 88.1 90.2 90.7 94.4 99.9 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; synthetic For the ordering address, see the inside front cover. The latest historical revision of the materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and industrial production index and the capacity utilization rates was released in November glass; primary metals; and fabricated metals. 1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve 4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; print- Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial ing and publishing; chemical products such as drugs and toiletries; agricultural chemicals; production index, see "Industrial Production: 1989 Developments and Historical Revi- leather and products; machinery; transportation equipment; instruments; and miscellasion," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. neous manufactures. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally 5. Monthly highs, 1978-80; monthly lows, 1982. adjusted index of industrial production to the corresponding index of capacity. 6. Monthly highs, 1988-89; monthly lows, 1990-91. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1994 1995 1994 GGrroouupp por- avg. tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner July AAuugg..PP Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 118.1 119.1 119.0 119.5 120.3 121.7 122.0 122.1 122.0 121.2 121.4 121.2 121.6 123.0 2 Products 60.9 115.9 116.7 116.4 116.9 117.5 118.7 119.1 119.1 118.9 118.0 118.2 118.4 118.5 119.9 3 Final products 46.6 118.4 119.2 118.9 119.2 119.8 121.2 121.6 121.8 121.6 121.0 121.1 121.4 121.6 123.1 4 Consumer goods, total 28.5 113.2 113.8 113.0 113.0 113.9 115.5 115.7 115.7 114.9 114.4 114.4 114.6 114.3 116.1 5 Durable consumer goods 5.5 119.4 120.7 119.1 119.4 120.5 123.4 124.5 123.4 121.4 119.4 116.5 117.1 115.5 119.2 6 Automotive products 2.5 125.5 124.9 123.8 124.5 127.1 131.1 131.7 132.3 129.7 126.1 121.1 122.8 119.6 126.3 7 Autos and trucks 1.6 125.4 126.0 122.5 122.3 126.5 131.4 132.7 133.5 130.8 124.9 119.0 120.2 115.4 123.8 8 Autos, consumer .9 94.9 91.7 90.2 92.9 94.0 100.5 103.6 103.6 103.1 94.4 88.2 86.6 88.9 88.6 9 Trucks, consumer .7 180.7 189.0 181.5 175.5 185.8 187.3 184.6 187.1 180.0 180.2 175.4 182.3 162.9 188.9 10 Auto parts and allied goods .9 123.2 120.0 123.9 126.6 125.7 127.8 126.9 127.0 124.8 126.1 122.9 125.8 126.2 129.0 11 Other 3.0 114.1 117.1 115.2 115.2 115.0 116.8 118.3 115.9 114.3 113.8 112.6 112.3 112.0 113.2 12 Appliances televisions and air conditioners .7 126.0 135.1 130.2 124.9 126.9 131.5 132.1 125.8 122.7 121.9 123.6 124.9 124.0 112266..77 13 Carpeting and furniture .8 105.0 106.9 104.1 107.4 105.9 108.0 110.2 107.9 106.5 106.9 104.1 101.9 103.4 104.7 14 Miscellaneous home goods 1.5 113.8 114.6 114.6 114.9 114.5 114.9 116.5 115.8 114.7 113.8 112.3 112.3 111.2 111.6 15 Nondurable consumer goods 23.0 111.8 112.2 111.7 111.5 112.4 113.7 113.6 113.9 113.5 113.3 114.0 114.1 114.1 115.4 16 Foods and tobacco 10.3 110.5 111.2 111.9 112.2 112.4 114.3 113.1 112.9 112.9 113.8 114.1 114.8 113.7 114.7 17 Clothing 2.4 95.9 95.9 95.5 96.2 96.2 96.8 96.1 94.7 94.6 93.6 93.3 91.2 89.5 89.8 18 Chemical products 4.5 129.7 129.8 127.5 127.2 130.5 134.0 137.0 136.6 135.9 133.7 133.5 134.2 134.4 135.6 19 Paper products 2.9 104.7 105.9 105.2 103.6 104.6 104.3 103.4 104.1 102.9 104.2 103.7 103.3 104.8 104.1 70 Energy 2.9 113.9 113.1 110.5 109.8 110.6 109.6 110.4 114.1 113.3 111.2 116.8 116.3 120.5 125.8 ?L Fuels .9 106.7 105.8 107.4 103.9 109.8 107.4 107.4 109.1 110.6 109.9 108.3 108.3 107.7 104.8 22 Residential utilities 2.1 116.8 116.1 111.8 112.2 110.7 110.3 111.6 116.0 114.3 111.6 120.4 119.6 125.8 134.6 23 Equipment 18.1 126.5 127.5 128.0 128.8 128.9 130.1 130.9 131.2 132.0 131.3 131.4 132.0 133.1 134.1 24 Business equipment 14.0 146.7 148.9 149.5 150.9 151.0 152.6 153.7 154.5 155.9 154.9 154.9 156.0 157.6 159.0 2.5 Information processing and related 5.7 176.4 179.7 181.1 183.2 184.2 188.3 188.7 189.1 192.3 193.7 194.3 197.7 201.0 203.4 26 Computer and office equipment 1.5 284.2 288.9 295.8 300.5 305.7 311.9 318.0 325.3 331.8 340.0 346.8 353.8 366.8 373.7 77 Industrial 4.0 120.9 122.3 123.0 124.4 124.1 124.1 125.9 126.1 126.2 124.8 125.6 126.1 126.9 128.1 ?8 2.6 137.9 137.9 136.8 137.1 137.5 137.8 139.7 143.4 144.7 140.8 137.4 137.7 138.2 139.2 79 Autos and trucks 1.2 148.0 149.4 147.7 149.2 151.6 152.6 157.2 157.7 154.9 147.1 142.2 142.8 145.7 146.2 30 Other 1.7 129.4 133.5 133.3 134.3 133.1 133.1 133.5 132.9 132.6 130.4 131.2 128.2 128.3 128.3 31 Defense and space equipment 3.4 71.0 69.2 68.8 68.7 69.0 68.7 68.6 67.7 67.5 66.8 66.8 67.0 66.6 66.4 32 Oil and gas well drilling .5 90.8 89.6 93.9 88.3 86.0 86.0 86.7 89.1 85.7 89.2 91.9 86.4 89.6 89.6 33 Manufactured homes .2 137.3 134.5 138.4 142.0 143.1 153.6 153.6 147.4 148.3 147.2 150.4 152.4 147.6 34 Intermediate products, total 14.3 108.1 109.2 108.6 109.9 110.6 110.9 111.3 110.9 110.7 108.9 109.4 109.5 109.1 110.1 35 Construction supplies 5.3 106.8 108.2 108.6 109.7 109.8 111.6 112.2 111.0 110.5 108.6 107.1 107.3 106.9 107.9 36 Business supplies 9.0 109.1 109.9 108.7 110.1 111.3 110.7 110.9 111.0 110.9 109.3 111.0 111.0 110.7 111.7 37 Materials 39.1 121.5 122.8 122.9 123.4 124.6 126.3 126.5 126.7 126.7 126.1 126.3 125.6 126.4 127.7 38 Durable goods materials 20.6 131.2 132.6 133.3 134.2 136.0 138.6 139.1 139.2 139.2 138.4 138.3 138.0 138.6 140.4 39 Durable consumer parts 3.9 132.2 133.2 133.1 133.8 135.8 139.7 139.1 139.1 138.3 134.7 132.7 132.4 130.8 134.6 40 Equipment parts 7.5 143.1 145.2 146.7 149.0 150.7 152.3 153.6 155.1 156.2 157.7 158.9 160.2 163.7 165.6 41 Other 9.1 121.3 122.3 122.8 122.7 124.6 127.3 127.6 126.7 126.3 124.9 124.7 123.2 122.5 123.4 42 Basic metal materials 3.0 119.7 119.3 121.1 121.3 123.2 126.0 125.6 124.8 125.2 123.5 123.6 120.9 121.2 121.8 43 Nondurable goods materials 8.9 118.4 120.3 119.8 120.3 121.5 122.8 122.3 121.8 121.7 120.9 121.4 119.0 119.3 119.8 44 Textile materials 1.1 105.3 105.7 105.9 106.9 110.3 108.7 109.8 108.5 108.8 108.1 106.7 99.3 98.0 99.7 45 Paper materials 1.8 118.7 122.5 121.5 120.5 122.1 121.3 120.8 122.1 124.1 121.9 125.8 120.0 123.5 122.5 46 Chemical materials 4.0 123.2 124.8 124.0 124.6 125.9 127.5 128.6 128.3 127.6 127.0 127.5 125.9 126.5 127.1 47 Other 2.0 116.9 118.1 118.2 119.5 119.3 123.4 119.1 116.8 116.0 115.8 114.7 116.2 114.3 115.1 48 Energy materials 9.6 105.2 106.1 105.6 105.2 104.9 105.3 105.6 106.6 106.6 106.7 107.1 107.0 108.9 110.0 49 Primary energy 6.3 100.3 100.9 100.8 100.3 100.7 101.7 101.7 102.0 102.5 102.4 102.1 102.6 104.1 103.8 50 Converted fuel materials 3.3 114.9 116.3 115.1 115.1 113.4 112.3 113.4 115.6 114.7 115.2 116.9 115.6 118.5 122.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.2 117.6 118.7 118.6 119.1 119.8 121.1 121.4 121.4 121.4 120.8 121.2 121.0 121.5 122.7 52 Total excluding motor vehicles and parts 95.2 117.1 118.2 118.0 118.5 119.2 120.5 120.8 120.8 120.8 120.3 120.7 120.6 121.1 122.2 53 Total excluding computer and office eauipment 98.3 115.4 116.4 116.1 116.6 117.4 118.7 118.9 118.9 118.7 117.9 118.0 117.8 111188..00 111199..33 54 Consumer goods excluding autos and trucks . 26.9 112.4 113.0 112.4 112.4 113.1 114.5 114.6 114.5 113.9 113.8 114.1 114.3 114.3 115.6 55 Consumer goods excluding energy 25.6 113.1 113.8 113.3 113.3 114.2 116.2 116.3 115.9 115.1 114.8 114.1 114.4 113.6 115.0 56 Business equipment excluding autos and trucks 12.8 146.5 148.8 149.5 151.0 150.9 152.5 153.3 154.1 155.9 155.6 156.1 157.1 115588..66 116600..11 57 Business equipment excluding computer and office eauipment 12.5 130.7 132.7 132.7 133.8 133.6 134.7 135.4 135.6 136.6 135.0 134.4 113344..99 113355..66 113366..55 58 Materials excluding energy 29.5 127.3 128.8 129.2 129.9 131.6 133.8 134.0 133.9 133.9 133.0 133.1 132.2 132.7 134.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • November 1995 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1992 SIC^ pro- 1994 Group code por- avg. tion Aug. Sept. Jan. Feb. Mar. Apr. Mayr Juner July Aug.p Index (1987 = 100) MAJOR INDUSTRIES 59 Total index 100.0 118.1 119.1 119.0 119.5 120.3 121.7 122.0 122.1 122.0 121.2 121.4 121.2 121.6 123.0 60 Manufacturing 85.5 119.7 120.9 120.9 121.5 122.6 124.2 124.5 124.2 124.2 123.3 123.2 123.1 123.1 124.3 61 Primary processing 26.5 115.3 116.3 116.2 116.6 118.4 120.3 119.8 119.1 118.9 117.7 117.4 116.2 116.1 116.9 62 Advanced processing 59.0 121.8 123.1 123.1 123.8 124.6 126.0 126.6 126.6 126.7 126.0 125.9 126.3 126.3 127.7 63 Durable goods 45.1 125.5 127.0 127.2 128.0 129.1 131.2 131.6 131.5 131.6 130.4 130.1 130.6 130.9 132.7 64 Lumber and products "'24 2.0 106.0 105.5 107.6 106.7 106.7 110.4 110.2 107.4 105.2 104.9 102.7 103.8 102.7 104.9 65 Furniture and fixtures 25 1.4 111.4 115.5 112.4 114.8 113.0 114.7 116.0 115.6 113.8 112.7 111.4 112.1 110.7 112.2 66 Stone, clay, and glass products 32 2.1 104.9 105.8 105.8 105.4 106.9 110.1 108.7 107.4 108.1 105.8 106.1 106.4 105.4 106.2 67 Primary metals 33 3.1 114.5 113.5 116.0 115.9 119.1 123.0 120.9 119.8 120.5 117.8 117.7 115.0 115.2 116.4 68 Iron and steel 331,2 1.7 118.3 113.0 118.2 118.8 121.9 129.3 125.9 124.3 126.1 122.6 122.1 117.2 116.4 118.4 69 Raw steel .1 107.9 107.0 109.9 109.0 114.2 121.9 114.6 117.2 117.2 114.3 112.4 112.7 110.9 70 Nonferrous 333-6,9 1.4 109.3 113.6 112.7 111.8 115.2 114.8 114.2 113.8 113.1 111.5 111.8 111.6 113.1 113.3 71 Fabricated metal products... 34 5.0 110.8 112.4 111.6 112.2 113.3 115.3 115.3 114.9 114.6 112.9 113.8 114.1 113.1 114.1 72 Industrial machinery and equipment 35 7.9 159.9 162.6 164.6 166.5 167.5 168.5 171.4 171.1 172.0 172.3 173.3 173.4 175.7 178.0 73 Computer and office equipment 357 1.7 284.2 288.9 295.8 300.5 305.7 311.9 318.0 325.3 331.8 340.0 346.8 353.8 366.8 373.7 74 Electrical machinery 36 7.3 160.0 164.1 165.0 166.9 168.8 172.5 172.9 174.0 175.2 175.1 176.9 179.0 182.3 184.7 75 Transportation equipment.. . 37 9.6 109.7 109.5 108.8 109.0 110.5 111.9 112.6 113.5 112.9 110.1 107.6 107.7 106.5 109.4 76 Motor vehicles and parts . 371 4.8 137.9 138.1 137.4 138.4 141.4 144.6 146.1 146.7 144.8 139.0 134.4 134.7 132.6 138.2 77 Autos and light trucks . 371 2.5 131.9 131.9 128.4 128.6 132.7 138.4 140.0 140.8 138.2 131.3 124.8 125.7 121.6 129.4 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.8 82.6 82.3 81.4 80.8 80.9 80.6 80.4 81.7 82.3 82.4 82.0 82.0 81.6 81.8 79 Instruments 38 5.4 107.4 108.7 108.0 108.2 107.7 108.9 108.4 107.7 108.5 108.4 107.5 108.5 109.0 109.5 80 Miscellaneous 39 1.3 116.2 117.1 117.0 118.4 118.6 117.6 119.1 120.3 119.0 118.2 117.3 118.2 116.0 116.9 81 Nondurable goods 40.5 113.3 114.0 113.7 114.2 115.4 116.4 116.5 116.1 115.8 115.4 115.5 114.8 114.4 114.9 82 Foods "20 9.4 112.8 113.7 114.6 113.4 113.9 114.7 115.9 115.7 115.4 115.3 116.5 116.9 115.7 116.6 83 Tobacco products 21 1.6 96.5 96.2 96.1 104.5 101.5 108.0 97.3 96.4 97.9 104.1 101.4 103.2 101.7 103.8 84 Textile mill products 22 1.8 109.0 109.0 108.3 110.6 112.0 112.2 113.3 110.9 111.2 111.2 109.6 103.6 103.7 104.4 85 Apparel products 23 2.2 96.3 96.8 96.8 96.9 96.8 97.0 96.6 95.8 95.4 93.9 93.5 91.2 89.8 90.0 86 Paper and products 26 3.6 117.4 120.2 118.7 118.9 121.3 121.7 119.8 120.3 120.6 119.6 121.2 118.0 120.2 119.3 87 Printing and publishing 27 6.8 101.1 101.5 100.9 101.4 102.0 101.6 101.3 100.8 100.4 99.7 100.3 100.0 99.2 99.2 88 Chemicals and products .... 28 9.9 124.1 124.7 123.7 123.8 126.2 128.0 130.4 129.7 129.2 127.8 127.8 127.6 127.9 128.5 89 Petroleum products 29 1.4 105.3 105.2 105.3 104.0 107.6 107.7 107.4 107.6 108.5 106.9 106.2 106.2 106.5 105.1 90 Rubber and plastic products . 30 3.5 133.5 134.5 134.7 136.7 138.3 140.0 140.2 140.5 139.1 139.6 136.6 136.4 135.4 137.3 91 Leather and products 31 .3 85.8 85.5 85.4 85.6 84.5 84.4 82.9 82.8 82.7 80.2 80.5 78.6 76.8 78.9 92 Mining 6.8 99.8 100.0 100.1 99.2 98.3 100.1 100.0 100.6 100.2 100.7 100.5 100.4 101.1 99.7 93 Metal 10 .4 159.4 156.6 160.0 158.9 154.3 156.2 158.5 160.4 159.3 158.7 159.9 161.2 161.6 161.5 94 Coal 12 1.0 112.0 111.4 110.7 110.2 110.1 117.8 117.9 118.6 117.4 114.1 109.7 111.9 114.5 108.4 95 Oil and gas extraction 13 4.7 93.0 93.5 93.7 92.2 91.2 92.2 91.2 92.3 91.6 93.0 93.7 93.1 93.4 92.5 96 Stone and earth minerals 14 .6 107.0 106.6 106.7 109.3 109.9 109.9 115.1 112.0 114.8 114.2 112.5 111.7 113.4 114.5 97 Utilities 7.7 118.1 118.8 116.5 117.2 116.5 115.2 116.5 119.2 118.9 118.0 122.1 121.8 126.0 132.2 98 Electric 49L3PT 6.1 117.8 118.4 117.1 117.9 117.5 116.5 117.2 119.0 119.3 118.6 121.6 122.4 127.6 135.2 99 Gas 492,3PT 1.6 119.2 120.4 114.2 114.4 112.3 109.8 113.7 120.1 117.3 115.9 123.9 119.2 119.7 120.1 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.7 118.6 119.8 119.9 120.5 121.5 122.9 123.2 122.9 122.9 122.4 122.5 122.4 122.5 123.4 101 Manufacturing excluding office and computing machines . .. 83.8 116.5 117.6 117.5 118.1 119.1 120.6 120.8 120.5 120.4 119.4 119.2 119.0 118.8 119.9 Gross value (billions of 1987 dollars, annual rates) MAJOR MARKETS 102 Products, total 1,707.0 2,006.2 2,020.2 2,015.6 2,020.4 2,037.2 2,056.5 2,063.2 2,066.5 2,065.1 2,049.6 2,051.8 2,057.1 2,059.2 2,083.7 103 1,314.6 1,576.3 1,586.6 1,584.2 1,584.4 1,598.4 1,615.1 1,621.1 1,626.4 1,626.1 1,615.5 1,616.5 1,621.3 1,623.4 1,644.1 104 Consumer goods 866.6 982.5 987.3 981.5 977.0 988.5 999.6 1,000.2 1,001.9 997.3 989.6 989.3 990.6 985.2 999.5 105 Equipment 448.0 593.8 599.3 602.7 607.3 609.9 615.5 620.9 624.5 628.7 625.9 627.2 630.7 638.2 644.6 106 Intermediate 392.5 429.8 433.5 431.4 436.0 438.8 441.4 442.0 440.1 439.0 434.1 435.3 435.7 435.8 439.6 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial For the ordering address, see the inside front cover. The latest historical revision of the production index, see "Industrial Production: 1989 Developments and Historical Reviindustrial production index and the capacity utilization rates was released in November sion," Federal Reserve Bulletin, vol. 76, (April 1990), pp. 187-204. 1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve 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 1994 1995 IItteemm 11999922 11999933 11999944 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,095 1,199 1,372 1,401 1,358 1,420 1,293 1,282 1,235 1,243 1,243 1,275 1,355 ? One-family 911 987 1,068 1,046 1,025 1,105 990 931 911 905 930 958 1,011 3 Two-family or more 184 213 303 355 333 315 303 351 324 338 313 317 344 4 Started 1,200 1,288 1,457 1,451 1,536 1,545 1,366 1,319 1,238 1,269 1,282 1,298 1,390 One-family 1,030 1,126 1,198 1,164 1,186 1,250 1,055 1,048 987 1,009 988 1,034 1,098 6 Two-family or more 170 162 259 287 350 295 311 271 251 260 294 264 292 7 Under construction at end of period1 612 680 762 779 787 791 792 797 769 763 755 756 759 8 One-family 473 543 558 587 587 584 578 579 552 544 536 535 538 9 Two-family or more 140 137 204 192 200 207 214 218 217 219 219 221 221 10 Completed 1,158 1,193 1,347 1,376 1,371 1,388 1,436 1,302 1,443 1,334 1,342 1,247 1,341 11 One-family 964 1,040 1,160 1,169 1,136 1,173 1,209 1,080 1,222 1,089 1,072 1,049 1,049 1? Two-family or more 194 153 187 207 235 215 227 222 221 245 270 198 292 13 Mobile homes shipped 210 254 304 314 322 347 361 335 333 318 329 329 319 Merchant builder activity in one-family units 14 Number sold 610 666 670 707 642 627 643 575 612 607R 671 771122 771155 15 Number for sale at end of period1 265 293 338 330 335 338 342 347 347 348 347 348 348 Price of units sold (thousands of dollars)2 16 Median 121.3 126.1 130.4 132.0 129.9 135.0 127.9 135.0 130.0 134.0R 134.0 113322..99 113333..99 17 Average 144.9 147.6 153.7 153.0 155.4 159.6 147.4 160.2 153.3 157.8' 158.6 158.8 155.9 EXISTING UNITS (one-family) 18 Number sold 3,520 3,800 3,946 3,820 3,690 3,760 3,610 3,420 3,620 3,390 3,550 3,800 3,990 Price of units sold (thousands 19 Median 103.6 106.5 109.6 107.5 108.7 109.1 108.1 107.0 107.9 108.1 109.0 116.2 115.9 20 Average 130.8 133.1 136.4 133.0 134.7 135.6 135.3 133.4 134.5 134.2 135.4 143.3 142.2 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 435,022 464,504 506,904 521,296 520,183 521,771 521,054 521,429 523,467 523,597 514,889 519,625 529,804 99 315,695 339,161 376,566 382,946 387,052 386,103 384,806 383,652 383,301 383,356 376,289 377,623 386,591 ?3 Residential 187,870 210,455 238,884 240,484 242,447 243,565 241,938 240,207 237,894 235,138 231,762 228,508 232,557 74 Nonresidential 127,825 128,706 137,682 142,462 144,605 142,538 142,868 143,445 145,407 148,218 144,527 149,115 154,034 ?5 Industrial buildings 20,720 19,533 21,121 21,894 25,060 22,769 22,715 23,370 23,911 24,984 24,809 24,512 24,998 76 Commercial buildings 41,523 42,627 48,552 51,195 52,008 53,491 53,338 53,687 55,439 55,069 51,810 55,872 57,325 ?7 Other buildings 21,494 23,626 23,912 23,677 24,147 24,694 24,373 24,039 23,062 23,922 24,349 23,394 24,683 28 Public utilities and other 44,088 42,920 44,097 45,696 43,390 41,584 42,442 42,349 42,995 44,243 43,559 45,337 47,028 79 Public 119,322 125,342 130,337 138,349 133,131 135,668 136,248 137,777 140,166 140,241 138,601 142,003 143,213 30 2,502 2,454 2,319 2,344 2,354 2,784 2,925 2,624 3,048 2,869 2,570 2,548 2,366 11 Highway 34,899 37,431 39,882 40,992 39,283 38,464 38,574 38,681 40,667 41,047 38,622 41,072 44,479 3? Conservation and development 6,021 5,978 6,228 7,197 6,331 7,466 6,681 7,128 7,139 6,386 5,559 6,145 5,389 33 Other 75,900 79,479 81,908 87,816 85,163 86,954 88,068 89,344 89,312 89,939 91,850 92,238 90,979 1. Not at annual rates. SOURCES. Bureau of the Census estimates for all series except (1) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing Institute and 3. Recent data on value of new construction may not be strictly comparable with data seasonally adjusted by the Census Bureau, and (2) sales and prices of existing units, for previous periods because of changes by the Bureau of the Census in its estimating which are published by the National Association of Realtors. All back and current figures techniques. For a description of these changes, see Construction Reports (C-30-76-5), are available from the originating agency. Permit authorizations are those reported to the issued by the Census Bureau in July 1976. Census Bureau from 19,000 jurisdictions beginning in 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • November 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 IIIttteeemmm llleeevvveeelll,,, 1994 1995 1995 AAAuuuggg... 11999944 11999955 111999999555 111 AAuugg.. AAuugg.. Sept. Dec. Mar. June Apr/ Mayr June July Aug. CONSUMER PRICES2 (1982-84=100) 1 All items 2.9 2.6 3.6 1.9 3.2 3.2 .4 .3 .1 .2 .1 152.9 2 2.8 2.5 5.1 3.9 .0 3.6 .7 .1 .1 .2 .2 148.4 3 Energy items 3.1 -1.0 9.2 .4 -1.1 5.4 .4 .5 .5 -.8 -.8 107.4 4 All items less food and energy 2.9 2.9 2.6 2.0 4.1 3.0 .4 .2 .2 .2 .2 161.6 5 Commodities 1.5 1.5 .9 .3 2.6 .6 .2 .0 -.1 .1 .4 138.9 6 Services 3.5 3.6 3.6 2.6 4.8 4.3 .4 .3 .3 .3 .1 174.6 PRODUCER PRICES (1982=100) 7 Finished goods 1.9 1.3 1.9 2.2 3.2 .9 .2 .1 -.1 .0 -.1 128.1 8 Consumer foods 1.0 1.6 1.9 9.2 -1.2 -4.9 -.2 -.8 -.3 1.2 .0 128.6 9 Consumer energy 2.9 -2.7 3.2 .0 11.3 2.0 .9 .6 -1.0 -2.5 -.9 79.2 10 Other consumer goods 1.7 2.1 1.7 .6 2.9 3.2 .3 .3 .2 .2 .1 141.9 11 Capital equipment 2.4 1.7 2.1 -.3 3.0 2.4 .2 .1 .2 .1 .1 136.6 Intermediate materials 12 Excluding foods and feeds 2.7 5.7 6.2 7.2 10.6 3.9 .6 .3 .0 .0 -.1 126.6 13 Excluding energy 2.8 7.0 6.8 8.3 10.5 4.2 .6 .2 .2 .3 .1 136.2 Crude materials 14 Foods -5.7 2.8 -13.5 -1.2 -4.6 -.4 -1.1 -2.9 4.0 4.1 .7 104.6 15 Energy 2.7 -13.9 -19.2 -7.6 -4.5 15.3 4.2 2.9 -3.4 -5.4 -3.8 65.1 16 Other 12.9 10.6 20.3 27.9 21.9 4.1 1.2 -.7 .6 -1.8 -.9 174.6 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a 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 Q2 Q3 Q4 QL GROSS DOMESTIC PRODUCT 1 Total 6,343.3 6,738.4 6,689.9 6,791.7 6,897.2 6,977.4 By source 2 Personal consumption expenditures 4,136.9 4,378.2 4,628.4 4,586.4 4,657.5 4,734.8 4.782.1 3 Durable goods 492.7 538.0 591.5 580.3 591.5 617.7 615.2 4 Nondurable goods 1,295.5 1,339.2 1,394.3 1,381.4 1,406.1 1.420.7 1.432.2 5 Services 2,348.7 2,501.0 2,642.7 2,624.7 2,659.9 2,696.4 2,734.8 6 Gross private domestic investment 788.3 882.0 1,032.9 1,034.4 1,055.1 1,075.6 1,107.8 7 Fixed investment 785.2 866.7 980.7 967.0 992.5 1.020.8 1.053.3 8 Nonresidential 561.4 616.1 697.6 683.3 709.1 732.8 766.4 9 Structures 171.1 173.4 182.8 181.8 184.6 192.0 198.6 10 Producers' durable equipment 390.3 442.7 514.8 501.5 524.5 540.7 567.8 11 Residential structures 223.8 250.6 283.0 283.6 283.4 288.0 286.8 12 Change in business inventories 3.0 15.4 52.2 67.4 62.6 54.8 54.5 13 Nonfarm -2.7 20.1 45.9 60.4 53.4 47.4 54.1 14 Net exports of goods and services -30.3 -65.3 -98.2 -97.6 -109.6 -98.9 -111.1 15 Exports 638.1 659.1 718.7 704.5 730.5 765.5 778.8 16 Imports 668.4 724.3 816.9 802.1 840.1 864.4 889.9 17 Government purchases of goods and services . .. 1,125.3 1,148.4 1,175.3 1,166.7 1,188.8 1,185.8 1,198.7 18 Federal 449.0 443.6 437.3 435.1 444.3 431.9 434.4 19 State and local 676.3 704.7 738.0 731.5 744.5 753.8 764.3 By major type of product 20 Final sales, total 6,017.2 6,327.9 6,686.2 6,622.5 6,729.1 6.842.4 6,922.9 21 Goods 2,292.0 2,390.4 2,532.4 2,493.7 2,543.6 2,603.3 2,638.1 22 Durable 968.6 1.032.4 1,118.8 1,099.4 1,125.8 1.151.8 1.175.0 23 Nondurable 1,323.4 1,358.1 1,413.6 1.394.3 1,417.8 1.451.5 1.463.1 24 Services 3,227.2 3.405.5 3,576.2 3.555.4 3,603.6 3.641.9 3,680.6 25 Structures 498.1 532.0 577.6 573.4 581.9 597.3 604.3 26 Change in business inventories 3.0 15.4 52.2 67.4 62.6 54.8 54.5 27 Durable goods -13.0 8.6 34.8 38.2 36.3 48.0 28 Nondurable goods 16.0 6.7 17.4 29.2 18.5 6.5 MEMO 29 Total GDP in 1987 dollars 4,979.3 5,134.5 5,344.0 5,314.1 5,367.0 5,433.8 5,470.1 NATIONAL INCOME 30 Total 4,829.5 5,131.4 5,458.4 5,430.7 5,494.9 5,599.4 5,688.4 31 Compensation of employees 3,591.2 3,780.4 4,004.6 3.979.3 4,023.7 4.095.3 4.157.3 32 Wages and salaries 2,954.8 3,100.8 3,279.0 3,257.2 3,293.9 3.356.4 3.403.4 33 Government and government enterprises .. . 567.3 583.8 602.8 601.9 604.4 609.0 617.2 34 Other 2,387.5 2,517.0 2,676.2 2.655.4 2,689.6 2,747.4 2,786.2 35 Supplement to wages and salaries 636.4 679.6 725.6 722.0 729.7 738.9 753.9 36 Employer contributions for social insurance 307.7 324.3 344.6 343.6 346.0 350.2 354.3 37 Other labor income 328.7 355.3 381.0 378.4 383.7 388.7 399.6 38 Proprietors' income1 418.7 441.6 473.7 471.3 467.0 485.7 493.6 39 Business and professional 374.4 404.3 434.2 431.9 437.1 444.0 449.2 40 Farm1 44.4 37.3 39.5 39.3 29.8 41.7 44.4 41 Rental income of persons2 -5.5 24.1 27.7 34.1 32.6 29.0 25.4 42 Corporate profits1 405.1 485.8 542.7 546.4 556.0 560.3 569.7 43 Profits before tax3 395.9 462.4 524.5 523.1 538.1 553.5 570.6 44 Inventory valuation adjustment -6.4 -6.2 -19.5 -14.1 -19.6 -32.1 -39.0 45 Capital consumption adjustment 15.7 29.5 37.7 37.4 37.5 38.8 38.1 46 Net interest 420.0 399.5 409.7 399.7 415.7 429.2 442.4 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 • November 1995 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1994 1995 AAccccoouunntt 11999922 11999933 11999944 Q2 Q3 Q4 Ql Q2r PERSONAL INCOME AND SAVING 1 Total personal income 5,154.3 5,375.1 5,701.7 5,659.9 5,734.5 5,856.6 5,962.0 6,004.3 ? Wage and salary disbursements 2,974.8 3,080.8 3,279.0 3,257.2 3,293.9 3,356.4 3,403.4 3,421.8 Commodity-producing industries 757.6 773.8 818.2 811.6 821.8 837.3 848.5 842.1 4 578.3 588.4 617.5 612.8 618.3 629.5 638.1 629.6 682.3 701.9 748.5 742.5 753.5 769.6 776.8 782.7 6 967.6 1,021.4 1,109.5 1,101.2 1,114.3 1,140.5 1,160.9 1,176.9 7 Government and government enterprises 567.3 583.8 602.8 601.9 604.4 609.0 617.2 620.1 8 328.7 355.3 381.0 378.4 383.7 388.7 399.6 403.9 9 Proprietors' income1 418.7 441.6 473.7 471.3 467.0 485.7 493.6 489.4 10 Business and professional1 374.4 404.3 434.2 431.9 437.1 444.0 449.2 452.2 11 44.4 37.3 39.5 39.3 29.8 41.7 44.4 37.2 1? Rental income of persons2 -5.5 24.1 27.7 34.1 32.6 29.0 25.4 24.3 n 161.0 181.3 194.3 191.7 196.9 202.7 205.5 208.1 14 Personal interest income 665.2 637.9 664.0 649.4 674.2 701.1 723.6 734.6 is 860.2 915.4 963.4 957.6 969.0 979.7 1,004.8 1,017.5 16 Old-age survivors, disability, and health insurance benefits 414.0 444.4 473.5 470.7 476.5 483.1 496.7 503.4 17 LESS: Personal contributions for social insurance 248.7 261.3 281.4 279.9 282.9 286.6 293.8 295.4 18 EQUALS: Personal income 5,154.3 5,375.1 5,701.7 5,659.9 5,734.5 5,856.6 5,962.0 6,004.3 19 LESS: Personal tax and nontax payments 648.6 686.4 742.1 746.4 744.1 754.7 777.6 807.0 20 EQUALS: Disposable personal income 4,505.8 4,688.7 4,959.6 4,913.5 4,990.3 5,101.9 5,184.4 5,197.3 21 LESS: Personal outlays 4,257.8 4,496.2 4,756.5 4,712.4 4,787.0 4,869.3 4,920.7 4,991.2 22 EQUALS: Personal saving 247.9 192.6 203.1 201.1 203.3 232.6 263.7 206.1 MEMO Per capita <1987 dollars) 71 19,489.7 19,878.8 20,475.8 20,389.7 20,536.5 20,739.8 2200,,883366..33 2200,,884488..77 ?4 Personal consumption expenditures 13,110.4 13,390.8 13,715.4 13,650.9 13,716.6 13,853.5 13,880.1 13,965.6 25 Disposable personal income 14,279.0 14,341.0 14,696.0 14,625.0 14,697.0 14,927.0 15,048.0 14,972.0 26 Saving rate (percent) 5.5 4.1 4.1 4.1 4.1 4.6 5.1 4.0 GROSS SAVING 27 Gross saving 722.9 787.5 920.6 923.3 922.6 950.3 1,006.0 992.0 28 Gross private saving 980.8 1,002.5 1,053.5 1,041.4 1,052.7 1,082.7 1,126.4 1,093.7 79 Personal saving 247.9 192.6 203.1 201.1 203.3 232.6 263.7 206.1 10 Undistributed corporate profits' 94.3 120.9 135.1 142.3 139.5 130.7 132.6 144.8 31 Corporate inventory valuation adjustment -6.4 -6.2 -19.5 -14.1 -19.6 -32.1 -39.0 -26.4 Capital consumption allowances 39 396.8 407.8 432.2 442255..99 432.6 443388..00 444455..33 445544..66 33 Noncorporate 261.8 261.2 283.1 272.1 277.3 281.3 284.7 288.2 34 Government surplus, or deficit (-), national income and -257.8 -215.0 -132.9 -118.1 -130.1 -132.3 -120.4 -101.7 15 -282.7 -241.4 -159.1 -145.1 -154.0 -161.1 -148.6 -127.8 36 State and local 24.8 26.3 26.2 27.0 23.9 28.8 28.2 26.1 37 Gross investment 731.7 789.8 889.7 899.3 901.5 907.9 947.4 920.0 18 Gross private domestic investment 788.3 882.0 1,032.9 1,034.4 1,055.1 1,075.6 1,107.8 1,092.2 39 Net foreign investment -56.6 -92.3 -143.2 -135.1 -153.6 -167.7 -160.4 -172.2 40 Statistical discrepancy 8.8 23 -30.9 -24.0 -21.1 -42.4 -58.6 -72.0 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 1994 1995 IItteemm ccrreeddiittss oorr ddeebbiittss 11999922 11999933 11999944 Q2 Q3 Q4 Ql Q2P 1 Balance on current account -61,548 -99,925 -151,245 -37,986 -39,714 —43,277r -39,025 -43,622 ? Merchandise trade balance -96,106 -132,618 -166,099 -41,494 -44,627 -43,488 -45,050 -49,040 3 Merchandise exports 440,352 456,823 502,485 122,730 127,384 133,926 138,061 142,543 4 Merchandise imports -536,458 -589,441 -668,584 -164,224 -172,011 -177,414 -183,111 -191,583 5 Military transactions, net -2,142 448 2,148 376 1,124 679 542 537 6 Other service transactions, net 58,767 57,328 57,739 14,195 14,696 15,342 15,068 15,135 7 Investment income, net 10,080 9,000 -9,272 -2,285 -2,533 -4,571 -1,961 -2,874 8 U.S. government grants -15,083 -16,311 -15,814 -3,703 -3,488 -6,245 -2,867 -2,356 9 U.S. government pensions and other transfers -3,735 -3,785 -4,247 -1,063 -1,064 -1,063 -782 -988 10 Private remittances and other transfers -13,330 -13,988 -15,700 -4,012 -3,822 -3,931 -3,975 -4,036 11 Change in U.S. government assets other than official reserve assets, net (increase, —) -1,661 -330 -322 491 -283 --993311 --115522 --115577 12 Change in U.S. official reserve assets (increase, -) 3,901 -1,379 5,346 3,537 -165 2,033 -5,318 -2,722 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) 2,316 -537 -441 -108 -111 -121 -867 -156 1 *> Reserve position in International Monetary Fund -2,692 -44 494 251 273 -27 -526 -786 16 Foreign currencies 4,277 -797 5,293 3,394 -327 2,181 -3,925 -1,780 17 Change in U.S. private assets abroad (increase, —) -68,115 -182,880 -130,875 -10,001 -27,492 -56,258 -69,873 -72,228 18 Bank-reported claims3 20,895 29,947 915 15,107 1,590 -16,651 -29,284 -35,534 19 Nonbank-reported claims 45 1,581 -32,621 -10,230 -8,051 -12,449 -11,518 70 US. purchases of foreign securities, net -46,415 -141,807 -49,799 -7,128 -10,976 -15,238 -6,567 -20,597 21 U.S. direct investments abroad, net -42,640 -72,601 -49,370 -7,750 -10,055 -11,920 -22,504 -16,097 ?? Change in foreign official assets in United States (increase, +) 40,466 72,146 39,409 9,162 19,691 -421 22,308 37,759 ?3 U.S. Treasury securities 18,454 48,952 30,723 5,919 16,477 7,470 10,131 25,169 24 Other U.S. government obligations 3,949 4,062 6,025 2,360 2,222 1,228 1,126 1,326 Other U.S. government liabilities4 2,180 1,706 2,211 174 494 692 -154 513 76 Other U.S. liabilities reported by US. banks3 16,571 14,841 2,923 1,674 1,298 -9,856 10,940 7,802 27 Other foreign official assets5 -688 2,585 -2,473 -965 -800 45 265 2,949 78 Change in foreign private assets in United States (increase, +) 113,357 176,382 251,956 37,364 60,045 85,136 72,533 76,459 29 U.S. bank-reported liabilities 15,461 20,859 114,396 28,231 19,650 34,676 -531 15,006 30 U.S. nonbank-reported liabilities 13,573 10,489 -4,324 -2,047 487 -5,242 10,113 31 Foreign private purchases of U.S. Treasury securities, net 36,857 24,063 33,811 -7,317 5,428 25,929 29,910 2299,,996666 37. Foreign purchases of other US. securities, net 29,867 79,864 58,625 12,551 14,762 10,195 15,816 20,202 33 Foreign direct investments in United States, net 17,599 41,107 49,448 5,946 19,718 19,578 17,225 11,285 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 35 Discrepancy -26,399 35,985 -14,269 -2,567 -12,082 13,718 19,527 4,511 36 Due to seasonal adjustment 587 -6,641 782 6,183 410 37 Before seasonal adjustment -26,399 35,985 -I4,269 -3,154 -5,441 12,936 13,344 4,101 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) 3,901 -1,379 5,346 3,537 -165 2,033 --55,,331188 --22,,772222 39 Foreign official assets in United States, excluding line 25 (increase, +) 38,286 70,440 37,198 8,988 19,197 -1,113 2222,,446622 3377,,224466 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 5,942 -3,717 --11,,118844 --44,,221177 33,,556644 11,,112200 --332222 5 1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38-40. 4. Associated primarily with military sales contracts and other transactions 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 • November 1995 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1995 IItteemm 11999922 11999933 11999944 Jan.r Feb/ Mar/ Apr/ Mayr June' Julyp 1 Goods and services, balance -39,480 -74,841 -106,212 -10,281 -9,504 -9,209 -11,076 -10,780 -11,280 -11,497 2 Merchandise -96,106 -132,618 -166,099 -15,797 -14,271 -14,537 -16,336 -15,976 -16,493 -16,586 3 Services 56,626 57,777 59,887 5,516 4,767 5,328 5,260 5,196 5,213 5,089 4 Goods and services, exports 618,969 644,578 701,201 62,200 62,093 65,342 64,412 65,595 64,599 63,090 5 Merchandise 440,352 456,823 502,485 44,921 45,638 47,947 47,157 48,307 47,381 46,061 6 Services 178,617 187,755 198,716 17,279 16,455 17,395 17,255 17,288 17,218 17,029 7 Goods and services, imports -658,449 -719,420 -807,413 -72,481 -71,597 -74,551 -75,488 -76,375 -75,879 -74,587 8 Merchandise -536,458 -589,441 -668,584 -60,718 -59,909 -62,484 -63,493 -64,283 -63,874 -62,647 9 Services -121,991 -129,979 -138,829 -11,763 -11,688 -12,067 -11,995 -12,092 -12,005 -11,940 MEMO 10 Balance on merchandise trade, Census basis -84,501 -115,568 -150,630 -14,897 — 13,350 -12,886 -14,797 -14,058 -14,730 -15,647 1. Data show monthly values consistent with quarterly figures in the U.S. balance of SOURCE. FT900, U.S. 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 1995 AAsssseett 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June July Aug.? 1 Total 71,323 73,442 74,335 76,027 81,439 86,761 88,756 90,549 90,063 91,534 86,648 2 Gold stock, including Exchange Stabilization Fund1 11,056 11,053 11,051 11,050 11,050 11,053 11,055 11,054 11,054 11,053 11,053 3 Special drawing rights2'3 8,503 9,039 10,039 10,154 11,158 11,651 11,743 11,923 11,869 11,487 11,146 4 Reserve position in International Monetary Fund2 11,759 11,818 12,030 12,120 12,853 13,418 14,206 14,278 14,276 14,761 14,470 5 Foreign currencies4 40,005 41,532 41,215 42,703 46,378 50,639 51,752 53,294 52,864 54,233 49,979 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 1995 AAsssseett 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June July Aug.P 1 Deposits 205 386 250 185 188 370 166 227 167 190 165 Held in custody 2 U.S. Treasury securities2 314,481 379,394 441,866 439,139 447,206 459,694 469,482 474,181 482,506 505,613 502,737 3 Earmarked gold3 13,118 12,327 12,033 12,033 12,033 11,964 11,897 11,800 11,725 11,728 11,741 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 Apr. May 1 Total1 483,002 520,278 517,028 527,311 542,742 552,394 560,335r 580,064r By type 2 Liabilities reported by banks in the United States 69,808 72,731 74,109 80,326 83,671 85,348 91,587' 3 U.S. Treasury bills and certificates3 151,100 139,570 133,014 134,341 141,716 146,417 154,575 154,517 U.S. Treasury bonds and notes 4 Marketable 212,237 254,059 255,888 257,998 262,020 265,164 263,390r 274,240' 5 6 U.S N . o s n e m cu a r r i k ti e e t s a b o l t e h 4 e r than U.S. Treasury securities v5 44 5 , , 2 6 0 5 5 2 47 6 , , 8 1 0 0 9 9 47 6 , ,1 8 3 8 7 0 48 6 , , 5 0 5 9 1 5 49 6 , , 2 1 0 3 0 5 49 6 , , 2 1 9 7 1 4 51 6 , , 2 2 7 0 8 9 53 6 , , 4 2 7 4 5 5 By area 7 Europe1 207,121 215,024 212,376 213,876 218,355 216,537 217,779r 223,800' 8 Canada 15,285 17,235 18,041 18,655 19,268 19,248 19,631 19,549 9 Latin America and Caribbean 55,898 41,192 36,982 42,201 39,847 42,476 44,728 50,289' 10 Asia 197,702 236,819 240,019 244,650 256,849 266,093 270,523 278,771 11 Africa 4,052 4,179 4,335 4,066 4,583 4,200 4,281 4,427 12 Other countries6 2,942 5,827 5,273 3,861 3,838 3,838 3,391 3,226 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 1994 1995 IItteemm 11999911 11999922 11999933 Sept. Dec. Mar. June 1 Banks' liabilities 75,129 72,796 78,120 83,343 89,475 96,190 105,956 2 Banks' claims 73,195 62,799 60,663 63,446 59,711 72,468 77,131 3 Deposits 26,192 24,240 20,289 20,493 19,445 24,256 28,915 4 Other claims 47,003 38,559 40,374 42,953 40,266 48,212 48,216 5 Claims of banks' domestic customers2 3,398 4,432 7,320 7,367 12,229 11,487 12,938 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • November 1995 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1995 IItteemm 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June JulyP BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 810,259 925,418 1,017,034 1,012,916 1,020,092 1,029,959 1,036,255 l,042,661r 1,056,155 1,055,100 2 Banks' own liabilities 606,444 625,665 721,751 724,503 725,495 723,876 719,727 724,075r 733,812 726,145 3 Demand deposits 21,828 21,573 23,373 23,424 24,058 22,656 22,916 23,526 22,119 24,100 4 Time deposits2 160,385 175,078 186,363 187,988 185,726 184,218 180,666 185,330 194,202 190,299 5 Other3 93,237 110,635 115,269 124,844 125,641 120,129 123,072 126,869 120,783 137,436 6 Own foreign offices4 330,994 318,379 396,746 388,247 390,070 396,873 393,073 388,350' 396,708 374,310 7 Banks' custodial liabilities5 203,815 299,753 295,283 288,413 294,597 306,083 316,528 318,586 322,343 328,955 8 U.S. Treasury bills and certificates6 127,644 176,739 162,825 156,670 160,353 170,138 175,540 182,046 182,173 188,623 9 Other negotiable and readily transferable instruments7 21,974 36,289 42,177 40,502 43,378 44,921 48,278 40,331 45,344 44,253 10 Other 54,197 86,725 90,281 91,241 90,866 91,024 92,710 96,209 94,826 96,079 11 Nonmonetary international and regional organizations8 . . . 9,350 10,936 8,506 9,821 8,291 9,263 8,690 8,510 9,115 10,741 12 Banks' own liabilities 6,951 5,639 8,076 9,355 7,642 8,639 7,527 7,543 8,311 9,670 13 Demand deposits 46 15 29 24 35 31 214 34 89 43 14 Time deposits2 3,214 2,780 3,198 3,715 3,484 3,899 3,954 3,491 4,434 5,247 15 Other3 3,691 2,844 4,849 5,616 4,123 4,709 3,359 4,018 3,788 4,380 16 Banks' custodial liabilities5 2,399 5,297 430 466 649 624 1,163 967 804 1,071 17 U.S. Treasury bills and certificates6 1,908 4,275 281 280 407 314 763 510 312 551 18 Other negotiable and readily transferable instruments7 486 1,022 149 181 242 307 400 456 492 520 19 Other 5 0 0 5 0 3 0 1 0 0 20 Official institutions9 159,563 220,908 212,301 207,123 214,667 225,387 231,765 239,458r 246,104 253,093 21 Banks' own liabilities 51,202 64,231 59,280 62,097 67,314 69,170 67,783 68,998r 73,133 75,075 22 Demand deposits 1,302 1,601 1,564 1,598 1,587 1,705 1,485 1,575 1,398 1,429 23 Time deposits2 17,939 21,654 23,211 22,673 25,384 23,899 25,792 27,486 27,410 29,506 24 Other3 31,961 40,976 34,505 37,826 40,343 43,566 40,506 39,937r 44,325 44,140 25 Banks' custodial liabilities5 108,361 156,677 153,021 145,026 147,353 156,217 163,982 170,460 172,971 178,018 26 U.S. Treasury bills and certificates6 104,596 151,100 139,570 133,014 134,341 141,716 146,417 154,575 154,517 159,654 27 Other negotiable and readily transferable instruments7 3,726 5,482 13,245 11,972 12,943 14,351 17,473 15,771 18,325 18,159 28 Other 39 95 206 40 69 150 92 114 129 205 29 Banks10 547,320 592,208 681,727 678,182 678,595 685,280 681,065 679,528r 686,151 665,961 30 Banks' own liabilities 476,117 478,792 567,776 564,116 561,898 565,231 558,650 560,023r 566,563 545,443 31 Unaffiliated foreign banks 145,123 160,413 171,030 175,869 171,828 168,358 165,577 171,673' 169,855 171,133 32 Demand deposits 10,170 9,719 10,628 10,243 10,954 10,788 10,667 11,365 10,467 12,121 33 Time deposits2 90,296 105,192 111,460 112,178 107,429 107,657 99,079 102,280 110,334 103,151 34 Other3 44,657 45,502 48,942 53,448 53,445 49,913 55,831 58,028r 49,054 55,861 35 Own foreign offices4 330,994 318,379 396,746 388,247 390,070 396,873 393,073 388,350r 396,708 374,310 36 Banks' custodial liabilities5 71,203 113,416 113,951 114,066 116,697 120,049 122,415 119,505 119,588 120,518 37 U.S. Treasury bills and certificates6 11,087 10,712 11,218 10,992 12,328 15,723 15,717 14,437 15,022 15,460 38 Other negotiable and readily transferable instruments7 7,555 17,020 14,234 14,137 15,232 15,254 15,815 10,955 11,409 10,731 39 Other 52,561 85,684 88,499 88,937 89,137 89,072 90,883 94,113 93,157 94,327 40 Other foreigners 94,026 101,366 114,500 117,790 118,539 110,029 114,735 115,165 114,785 125,305 41 Banks' own liabilities 72,174 77,003 86,619 88,935 88,641 80,836 85,767 87,511 85,805 95,957 42 Demand deposits 10,310 10,238 11,152 11,559 11,482 10,132 10,550 10,552 10,165 10,507 43 Time deposits2 48,936 45,452 48,494 49,422 49,429 48,763 51,841 52,073 52,024 52,395 44 Other3 12,928 21,313 26,973 27,954 27,730 21,941 23,376 24,886 23,616 33,055 45 Banks' custodial liabilities5 21,852 24,363 27,881 28,855 29,898 29,193 28,968 27,654 28,980 29,348 46 U.S. Treasury bills and certificates6 10,053 10,652 11,756 12,384 13,277 12,385 12,643 12,524 12,322 12,958 47 Other negotiable and readily transferable instruments7 10,207 12,765 14,549 14,212 14,961 15,009 14,590 13,149 15,118 14,843 48 Other 1,592 946 1,576 2,259 1,660 1,799 1,735 1,981 1,540 1,547 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 9,111 17,567 17,895 16,442 17,137 16,759 17,651 11,938 12,389 10,129 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

Bank-Reported Data A57 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1995 IItteemm 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June July? AREA 50 Total, all foreigners 810,259 925,418 1,017,034 1,012,916 1,020,092 1,029,959 1,036,255 l,042,661r 1,056,155' 1,055,100 51 Foreign countries 800,909 914,482 1,008,528 1,003,095 1,011,801 1,020,696 1,027,565 l,034,151r 1,047,040' 1,044,359 5? Europe 307,670 377,193 393,021 393,767 386,599 380,685 367,143 375,743 372,887' 375,858 53 Austria 1,611 1,917 3,649 3,236 4,021 4,012 4,030 3,963 3,855' 3,923 54 Belgium and Luxembourg 20,567 28,621 21,758 21,679 22,094 23,886 22,813 25,673 21,044 24,734 55 3,060 4,517 2,784 2,662 1.971 2,396 2,567 2,811 2,432 2,131 56 Finland 1,299 1,872 1,436 2,403 1,754 1,223 2,029 L,708R 1,455' 2,548 57 41,411 39,746 44,971 42,464 44,314 41,300 38,410 40,907 44,906' 42,460 58 Germany 18,630 26,613 27,175 28,521 27,497 28,276 28,453 31,939 34,347' 33,684 59 913 1,519 1,393 1,234 2,065 2,264 2,195 2,199 2,365 2,297 60 Italy 10,041 11,759 10,882 10,269 12,021 8,686 9,417 9,815 10,373 10,218 61 Netherlands 7,365 16,096 16,723 15,629 15,891 15,784 12,545 14,623 11,449' 11,743 6? Norway 3,314 2,966 2,338 2,309 2,147 2,066 1,374 1,289 1,305 1,119 63 Portugal 2,465 3,366 2,846 2,863 4,007 2,810 2,940 2,860 2,675' 3,164 64 Russia 577 2,511 2,714 2,047 2,642 3,469 5,011 7,042 7,177 6,313 65 Spain 9,793 20,493 14,655 15,149 11,106 11,675 9,859 9,828R 10,543 9,089 66 Sweden 2,953 2,572 3,093 2,258 2,247 2,474 1,801 1,445 3,344 2,156 67 39,440 41,561 41,881 39,518 40,100 39,355 41,258 39,986 47,383 42,799 68 Turkey 2,666 3,227 3,341 3,621 2,701 2,513 3,624 3,188 3,256 2,972 69 United Kingdom 111,805 133,936 163,577 173,906 162,638 159,908 152,462 149,451 139,535' 149,483 70 Yugoslavia" 504 570 245 261 258 211 222 220R 220 214 71 Other Europe and other former U.S.S.R 29,256 33,331 27,760 23,938 27,325 28,477 26,133 26,796R 25,223' 24,811 72 Canada 22,420 20,229 24,612 26,503 26,568 27,034 28,563 27,731 29,457' 28,854 73 Latin America and Caribbean 317,228 361,660 422,720 410,039 421,335 421,976 431,013 430,547' 444,455' 433,167 74 Argentina 9,477 14,477 17,199 12,790 11,886 9,978 10,154 10,368 10,873 12,335 75 Bahamas 82,284 73,800 103,684 95,227 98,833 100,370 97,301 92,523 97,256' 88,580 76 7,079 7,841 8,467 8,906 8,554 8,798 8,815 8,539 7,156 6,747 77 Brazil 5,584 5,301 9,140 9,004 10,628 10,860 13,114 15,613 18,250 21,217 78 British West Indies 153,033 193,574 229,560 229,934 233,318 235,839 243,707 242,443' 252,521' 244,541 79 Chile 3,035 3,183 3,114 2,966 3,327 3,587 3,446 2,958 3,372' 2,661 80 Colombia 4,580 3,171 4,579 4,309 4,037 3,644 3,598 3,432 3,276 3,429 81 Cuba 3 33 13 12 5 5 6 5 5 5 89 993 880 873 1,340 1,511 1,117 1,054 1,050 1,179 1,118 83 Guatemala 1,377 1,207 1,121 1,057 1,079 1,062 1,094 1,071 1,130 1,099 84 371 410 529 447 464 491 422 542 449 426 85 19,454 28,018 12,243 12,608 16,770 15,750 17,246 18,263 19,245' 20,967 86 Netherlands Antilles 5,205 4,686 4,530 3,834 4,495 4,013 4,076 6,013 3,978' 4,297 87 Panama 4,177 3,582 4,542 4,836 4,281 4,361 4,810 5,002 4,315' 4,624 88 1,080 926 899 901 892 893 931 1,014 997 943 89 Uruguay 1,955 1,611 1,594 1,798 1,610 1,754 1,930 2,105 2,031' 1,951 90 11,387 12,786 13,975 13,461 12,970 12,632 12,130 12,416 11,250' 11,369 91 Other 6,154 6,174 6,658 6,609 6,675 6,822 7,179 7,190' 7,172' 6,858 97 143,540 144,575 155,629 159,796 166,066 178,400 187,621 187,059 188,559' 192,048 China 93 People's Republic of China 3,202 4,011 10,066 12,911 15,661 12,017 12,138 9,459 10,579 11,904 94 Republic of China (Taiwan) 8,408 10,627 9,825 9,168 9,941 10,021 9,630 9,187 9,742' 9,142 95 Hong Kong 18,499 17,178 17,165 18,446 18,150 19,888 20,069 22,987 23,029' 25,111 96 India 1,399 1,114 2,338 2,296 2,119 2,354 2,194 1,942 2,106' 2,267 97 Indonesia 1,480 1,986 1,587 1,612 1,957 2,107 1,696 2,632 2,119 1,961 98 Israel 3,773 4,435 5,155 5,471 4,953 5,003 5,411 5,331 4,573 4,596 99 Japan 58,435 61,466 64,256 61,878 63,200 77,846 84,761 83,180 83,348 85,723 100 Korea (South) 3,337 4,913 5,124 4,781 4,175 4,357 4,747 5,034 4,991' 5,041 101 Philippines 2,275 2,035 2,714 2,616 2,363 2,297 2,257 2,730 2,539 2,651 109 Thailand 5,582 6,137 6,466 8,226 9,906 9,564 10,416 11,595 11,485 11,236 103 Middle Eastern oil-exporting countries 21,437 15,824 15,475 16,189 14,935 15,516 15,730 15,639 16,871 16,481 104 Other 15,713 14,849 15,458 16,202 18,706 17,430 18,572 17,343 17,177 15,935 105 5,884 6,633 6,511 6,363 6,203 6,817 7,218 8,030 8,013' 8,278 106 2,472 2,208 1,867 1,749 1,830 1,781 2,102 2,045 2,143 1,840 107 Morocco 76 99 97 92 73 70 66 73 90 94 108 South Africa 190 451 433 285 400 706 401 542 596 1,000 109 Zaire 19 12 9 10 10 9 12 10 18 13 110 Oil-exporting countries 1,346 1,303 1,343 1,409 1,122 1,599 1,328 1,303 1,418 1,364 111 Other 1,781 2,560 2,762 2,818 2,768 2,652 3,309 4,057 3,748' 3,967 117 Other 4,167 4,192 6,035 6,627 5,030 5,784 6,007 5,041 3,669' 6,154 113 Australia 3,043 3,308 5,141 5,395 4,351 5,024 4,912 4,256 2,944 5,472 114 Other 1,124 884 894 1,232 679 760 1,095 785 725' 682 115 Nonmonetary international and regional organizations. . . 9,350 10,936 8,506 9,821 8,291 9,263 8,690 8,510 9,115' 10,741 1 16 International15 7,434 6,851 7,437 8,455 7,138 8,092 7,153 6,531 7,463' 9,052 117 Latin American regional16 1,415 3,218 613 865 582 576 666 1,067 804 834 118 Other regional17 501 867 456 501 571 595 871 912 848 855 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 • November 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 1995 AArreeaa oorr ccoouunnttrryy 11999922 11999933 11999944 Jan. Feb. Mar. Apr. May June Julyp 1 Total, all foreigners 499,437 484,689 480,962 482,534 475,227 489,877 479,109 481,432r 516,108 504,453 2 Foreign countries 494,355 482,284 476,371 478,952 474,343 486,143 476,172 479,910r 513,475 503,136 3 Europe 123,377 121,934 123,669 125,768 122,435 126,622 121,791 121,990r 127,810 125,399 4 Austria 331 413 692 350 425 589 461 756 581 616 5 Belgium and Luxembourg 6,404 6,529 6,649 5,553 4,816 7,372 8,425 8,051 5,140 8,062 6 Denmark 707 382 1,029 478 636 723 549 508 599 423 7 Finland 1,418 594 691 716 452 564 700 431 394 967 8 France 14,723 11,537 12,244 12,702 11,948 13,279 12,878 13,833r 15,145 15,242 9 Germany 4,222 7,693 6,652 8,460 7,640 7,009 7,090 6,574 7,905 6,217 10 Greece 717 679 592 668 751 601 550 407 442 445 11 Italy 9,047 8,835 6,041 6,609 6,538 6,399 6,209 6,219 6,734 6,066 12 Netherlands 2,468 3,063 3,709 3,741 4,200 3,163 3,527 5,979r 4,337 4,460 13 Norway 355 396 504 1,069 988 1,442 1,295 1,382 1,019 1,206 14 Portugal 325 834 938 988 1,045 907 915 990 1,208 985 IS Russia 3,147 2,310 949 1,148 759 770 657 511 508 495 16 Spain 2,755 2,761 3,529 2,941 2,800 3,066 2,076 2,138 3,565 3,626 17 Sweden 4,923 4,082 4,096 3,826 4,038 3,372 3,522 3,319 2,934 3,552 18 Switzerland 4,717 6,565 7,490 9,020 8,056 7,839 7,383 7,616' 10,275 8,317 19 Turkey 962 1,300 874 560 882 690 810 722 715 725 20 United Kingdom 63,430 61,641 65,560 64,933 64,650 67,559 63,344 61,259' 65,042 62,697 21 Yugoslavia2 569 536 265 265 265 247 247 248 229 230 22 Other Europe and other former U.S.S.R.3 2,157 1,784 1,165 1,741 1,546 1,031 1,153 1,047 1,038 1,068 23 Canada 13,845 18,534 18,030 18,859 18,933 20,235 17,440 20,527' 19,680 18,809 24 Latin America and Caribbean 218,078 223,345 221,388 221,874 220,111 224,106 224,136 222,612' 241,095 236,207 25 Argentina 4,958 4,416 5,788 5,837 6,312 6,253 6,142 6,316 6,551 6,202 26 Bahamas 60,835 63,256 66,042 64,728 63,877 65,105 64,352 62,211 62,924 59,051 27 Bermuda 5,935 8,059 7,526 14,594 10,944 8,522 11,423 10,202 7,738 5,560 28 Brazil 10,773 11,813 9,485 9,744 10,016 10,751 10,760 11,039 11,360 12,344 29 British West Indies 101,507 98,661 95,744 90,577 91,924 96,381 94,029 95,205' 113,739 113,819 30 Chile 3,397 3,619 3,794 3,866 4,207 4,348 4,247 3,867 4,316 4,245 31 Colombia 2,750 3,179 4,003 3,816 3,818 3,983 3,928 4,034 4,032 4,182 32 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 884 680 680 707 659 567 565 663 767 767 34 Guatemala 262 288 366 346 349 379 359 353 344 340 35 Jamaica 162 195 254 253 278 275 262 258 264 277 36 Mexico 14,991 15,864 17,672 17,338 17,216 17,187 17,182 17,375 17,277 17,130 37 Netherlands Antilles 1,379 2,682 1,055 1,205 1,437 1,187 1,333 1,778 2,258 2,729 38 Panama 4,654 2,893 2,179 2,155 2,340 2,470 2,507 2,433 2,506 2,512 39 Peru 730 656 996 1,057 1,117 1,096 1,116 1,095 1,359 1,332 40 Uruguay 936 954 486 420 390 344 345 377 355 391 41 Venezuela 2,525 2,907 1,828 1,705 1,725 1,649 1,679 1,662 1,608 1,647 42 Other 1,400 3,223 3,490 3,526 3,502 3,609 3,907 3,744 3,697 3,679 43 131,789 111,720 107,114 110055,,667733 110066,,778888 109,438 110066,,667788 110088,,770033'' 111188,,556688 111177,,005500 China 44 People's Republic of China 906 2,271 845 933 869 841 980 879 1,143 1,206 45 Republic of China (Taiwan) 2,046 2,623 1,381 1,245 1,213 1,549 1,534 1,519 1,794 1,913 46 Hong Kong 9,642 10,872 9,237 10,271 11,285 14,404 11,603 12,068 14,894 14,735 47 India 529 589 990 1,103 1,059 1,039 1,139 1,126 1,210 1,735 48 Indonesia 1,189 1,527 1,462 1,486 1,424 1,513 1,463 1,427 1,443 1,513 49 Israel 820 826 692 672 683 811 683 783 949 748 SO Japan 79,172 59,945 59,230 55,268 57,191 55,534 55,176 58,419' 61,029 61,148 51 Korea (South) 6,179 7,536 10,276 10,848 10,754 12,284 11,913 12,245' 12,607 13,133 52 Philippines 2,145 1,409 636 564 548 550 496 532 915 595 S3 Thailand 1,867 2,170 2,902 2,880 2,635 2,778 2,740 2,755' 2,688 2,670 54 Middle Eastern oil-exporting countries4 18,540 15,109 13,732 14,044 13,341 13,069 13,292 11,643 12,570 11,946 SS Other 8,754 6,843 5,731 6,359 5,786 5,066 5,659 5,307 7,326 5,708 56 Africa 4,279 3,857 3,008 2,942 2,902 2,875 2,741 2,751 2,918 2,907 57 Egypt 186 196 225 227 234 205 181 237 204 193 58 Morocco 441 481 429 415 442 424 440 454 686 645 59 South Africa 1,041 633 665 657 596 644 584 579 563 531 60 Zaire 4 4 2 2 2 2 2 2 2 7 61 Oil-exporting countries5 1,002 1,129 842 825 772 731 700 658 657 659 62 Other 1,605 1,414 845 816 856 869 834 821 806 872 63 Other 2,987 2,894 3,162 3,836 3,174 2,867 3,386 3,327 3,404 2,764 64 Australia 2,243 2,071 2,219 2,198 1,912 1,759 1,805 1,914 2,042 2,072 65 Other 744 823 943 1,638 1,262 1,108 1,581 1,413 1,362 692 66 Nonmonetary international and regional organizations6 ... 5,082 2,405 4,591 3,582 884 3,734 2,937 1,522' 2,633 1,317 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 1995 Jan. Feb. Mar. Apr. Mayr June' Julyp 1 Total 559,495 538,471 556,191 571,711 602,176 2 Banks' claims 499,437 484,689 480,962 482,534 475,227 489,877 479,109 481,432 516,108 504,453 3 Foreign public borrowers 31,367 29,095 23,470 24,100 18,181 23,712 22,173 18,977 23,772 19,716 4 Own foreign offices2 303,991 284,310 283,135 278,928 279,276 292,153 282,659 285,831 300,288 291,620 5 Unaffiliated foreign banks 109,342 100,030 110,862 104,330 105,383 104,729 104,244 103,601 111,934 113,751 6 Deposits 61,550 48,841 59,065 54,445 54,145 53,178 54,648 51,368 58,580 59,316 7 Other 47,792 51,189 51,797 49,885 51,238 51,551 49,596 52,233 53,354 54,435 8 All other foreigners 54,737 71,254 63,495 75,176 72,387 69,283 70,033 73,023 80,114 79,366 9 Claims of banks' domestic customers3 60,058 53,782 75,229 81,834 86,068 10 Deposits 15,452 21,111 36,190 36,528 39,142 11 Negotiable and readily transferable instruments4 31,474 18,991 25,731 30,823 30,598 12 Outstanding collections and other claims 13,132 13,680 13,308 14,483 16,328 MEMO 13 Customer liability on acceptances 8,655 7,829 8,313 8,393 8,499 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 38,623 26,364 27,185 27,459 28,726 34,303 26,276' 29,028 33,513 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 States' Payable in U.S. Dollars Millions of dollars, end of period 1994 1995 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999911 11999922 11999933 Sept. Dec. Mar. Junep 1 Total 195,302 195,119 199,844 193,973 197,587 197,410 215,562 By borrower 2 Maturity of one year or less 162,573 163,325 170,134 167,271 171,949 169,082 187,507 3 Foreign public borrowers 21,050 17,813 17,765 17,370 15,530 15,739 15,916 4 All other foreigners 141,523 145,512 152,369 149,901 156,419 153,343 171,591 5 Maturity of more than one year 32,729 31,794 29,710 26,702 25,638 28,328 28,055 6 Foreign public borrowers 15,859 13,266 10,809 7,385 7,697 7,694 7,726 7 All other foreigners 16,870 18,528 18,901 19,317 17,941 20,634 20,329 By area Maturity of one year or less 8 Europe 51,835 53,300 56,574 58,784 56,500 53,824 59,535 9 Canada 6,444 6,091 7,664 7,212 7,266 7,352 8,175 10 Latin America and Caribbean 43,597 50,376 58,948 57,782 60,031 62,958 69,409 11 Asia 51,059 45,709 41,335 36,661 40,422 38,190 44,339 12 Africa 2,549 1,784 1,820 1,520 1,365 1,223 1,442 13 All other3 7,089 6,065 3,793 5,312 6,365 55,,553355 44,,660077 Maturity of more than one year 14 Europe 3,878 5,367 5,205 4,034 3,861 4,494 3,616 15 Canada 3,595 3,287 2,558 2,654 2,459 3,611 3,084 16 Latin America and Caribbean 18,277 15,312 13,976 12,665 12,220 12,989 13,984 17 Asia 4,459 5,038 5,587 5,047 4,732 5,165 5,459 18 Africa 2,335 2,380 1,936 1,840 1,553 1,592 1,372 19 All other3 185 410 448 462 813 477 540 1. Reporting banks include all types of depository institutions, as well as some brokers 2. Maturity is time remaining to maturity, 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 • November 1995 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks' Billions of dollars, end of period 1993 1994 1995 AArreeaa oorr ccoouunnttrryy 11999911 11999922 June Sept. Dec. Mar. June Sept. Dec. Mar. Junep 1 Total 343.6 346.7r 377.1 388.4 404.5 474.1 483.5 482.2' 490.2' 538.8' 522.1 2 G-10 countries and Switzerland 137.6 133.0' 150.0 153.3 161.8 179.8 174.7 183.2 187.7 204.4 198.3 3 Belgium and Luxembourg .0 5.6 7.0 7.1 7.4 8.0 8.6 9.6 6.9 8.1 7.1 4 France 11.0 15.3 14.0 12.3 11.7 16.4 18.9 20.7 19.2 19.8 19.0 5 Germany 8.3 9.3 10.8 12.4 12.6 30.0 25.3 24.5 24.0 30.3 29.0 6 Italy 5.6 6.5 7.9 8.7 7.6 15.5 14.0 11.6 11.7 10.6 10.6 7 Netherlands .0 2.8 3.7 3.7 4.7 4.1 3.6 3.4 3.6 3.5 4.2 8 Sweden 1.9 2.3 2.5 2.5 2.5 2.8 2.9 2.6 2.7 3.1 3.0 9 Switzerland 3.4 4.8 4.7 5.6 5.9 6.3 6.5 6.2 6.9 6.2 6.1 10 United Kingdom 68.5 60.8 73.5 74.7 84.7 69.9 64.7 78.3 82.4 87.8 86.5 11 Canada 5.8 6.3 8.0 9.7 6.8 7.7 9.6 9.8 9.6 10.5 10.8 12 Japan 22.6 19.3 17.9 16.8 17.8 19.1 20.5 16.4 20.8 24.4 22.0 13 Other industrialized countries 22.8 24.0 27.2 26.0 24.6 41.2 41.6 41.4 45.2 43.6 43.2 14 Austria .6 1.2 1.3 .6 .4 1.0 1.0 1.0 1.1 .9 .7 15 Denmark .9 .9 1.0 1.1 1.0 1.1 1.1 .8 1.2 1.6 1.0 16 Finland .7 .7 .9 .6 .4 1.0 .8 .8 1.0 1.1 .5 17 Greece 2.6 3.0 3.1 3.2 3.2 3.8 4.6 4.2 4.5 4.8 4.9 18 Norway 1.4 1.2 1.8 2.1 1.7 1.6 1.6 1.6 2.0 2.4 1.8 19 Portugal .6 .4 .9 1.0 .8 1.2 1.1 1.0 1.2 1.0 1.2 20 Spain 8.3 8.9 10.5 9.3 8.9 12.3 11.7 13.0 13.6 13.9 13.5 21 Turkey 1.4 1.3 2.1 2.1 2.1 2.4 2.1 1.8 1.6 1.4 1.4 22 Other Western Europe 1.8 1.7 1.7 2.2 2.6 3.1 2.8 1.0 2.7 2.5 2.6 23 South Africa 1.9 1.7 1.3 1.2 1.1 1.2 1.2 1.2 1.0 1.4 1.4 24 Australia 2.7 2.9 2.5 2.8 2.3 12.7 13.7 15.0 15.3 12.6 14.2 25 OPEC2 14.5 16.1 15.7 14.8 17.4 22.6 21.3 21.4 22.0' 19.3' 20.1 26 Ecuador .7 .6 .6 .5 .5 .5 .5 .4 .5 .5 .7 27 Venezuela 5.4 5.2 5.5 5.4 5.1 4.5 4.3 3.7 3.6 3.4 3.4 28 Indonesia 2.7 3.0 3.1 2.8 3.3 3.3 3.1 3.2 3.7' 4.0' 4.1 29 Middle East countries 4.2 6.2 5.4 4.9 7.4 13.2 12.4 13.0' 13.3' 10.7 11.4 30 African countries 1.5 1.1 1.1 1.1 1.2 1.0 1.0 1.0 .8 .7 .6 31 Non-OPEC developing countries 63.9 72.1 76.7 77.0 82.6 93.1 93.6 91.4' 96.5' 99.8 104.7 Latin America 32 Argentina 4.8 6.6 6.6 7.2 7.7 8.6 9.6 10.3 10.8 11.1 11.9 33 Brazil 9.6 10.8 12.3 11.7 12.0 12.2 11.5 8.9 8.0 8.8 9.6 34 Chile 3.6 4.4 4.6 4.7 4.7 5.1 5.1 5.4 6.1 6.3 7.0 35 Colombia 1.7 1.8 1.9 2.0 2.1 2.2 2.4 2.4 2.6 2.6 2.6 36 Mexico 15.5 16.0 16.8 17.5 17.8 18.4 18.0 19.2 18.1 17.5 17.3 37 Peru .4 .5 .4 .3 .4 .6 .6 .6 .5 .6 .8 38 Other 2.1 2.6 2.7 2.7 3.0 2.8 2.8 2.8 2.7 2.5 2.6 Asia China 39 People's Republic of China .3 .7 1.6 .5 2.0 .8 .8 1.0 1.1 1.1 1.4 40 Republic of China (Taiwan) 4.1 5.2 5.9 6.4 7.3 7.5 7.1 6.9 9.1 10.6 11.0 41 India 3.0 3.2 3.1 2.9 3.2 3.6 3.7 3.8 4.2 3.8 4.0 42 Israel .5 .4 .4 .4 .5 .4 .4 .4 .4 .6 .6 43 Korea (South) 6.8 6.6 6.9 6.5 6.7 14.1 14.3 14.1 16.2 16.9 18.7 44 Malaysia 2.3 3.1 3.7 4.1 4.4 5.2 5.2 3.7' 3.1' 3.9 4.1 45 Philippines 3.7 3.6 2.9 2.6 3.1 3.4 3.2 2.9 3.3 3.0 3.6 46 Thailand 1.7 2.2 2.4 2.8 3.1 2.9 3.3 3.5 3.8 3.3 3.8 47 Other Asia 2.0 2.7 2.6 3.0 2.9 3.1 3.5 3.6 4.8 5.2 3.8 Africa 48 Egypt .4 .2 .2 .2 .4 .4 .5 .3 .3 .4 .4 49 Morocco .7 .6 .6 .6 .7 .7 .7 .7 .6 .6 .9 50 Zaire \ .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .7 1.0 .9 .8 .8 1.0 .9 .9 .8 .7 .6 52 Eastern Europe 2.4 3.1 3.2 3.0 3.1 3.4 3.0 3.0 2.7 2.4 2.0 53 Russia4 .9 1.9 1.9 1.7 1.6 1.5 1.2 1.0 .8 .6 .4 54 Yugoslavia5 .9 .6 .6 .6 .6 .5 .5 .5 .5 .4 .3 55 Other .7 .6 .8 .7 .9 1.4 1.4 1.5 1.4 1.3 1.3 56 Offshore banking centers 54.2 58.4' 58.0 67.9 71.4 78.1 79.6 76.0 69.6 84.1 81.2 57 Bahamas 11.9 6.9 7.1 12.7 10.8 13.7 13.4 13.6 9.8 12.2 7.5 58 Bermuda 2.3 6.2 4.5 5.5 8.1 8.5 6.1 5.4 7.4 8.4 7.6 59 Cayman Islands and other British West Indies 15.8 21.8 15.6 15.1 17.4 17.6 23.3 21.2 19.9 19.3 23.2 60 Netherlands Antilles 1.2 1.1 2.5 2.8 2.6 3.5 2.5 1.7 1.0 .9 1.9 61 Panama6 1.4 1.9 2.1 2.1 2.4 2.0 1.9 1.8 1.3 1.1 1.3 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 14.4 13.9' 16.9 19.1 18.7 19.7 21.7 20.3 19.9 22.8 23.2 64 Singapore 7.1 6.5 9.3 10.4 11.2 13.0 10.6 11.8 10. r 19.2 16.4 65 Other' .0 .0 .0 .0 .1 .0 .0 .0 .1 .0 .0 66 Miscellaneous and unallocated8 48.0 39.7 46.2 46.3 43.4 55.7 69.4 65.5' 66.5' 84.9 72.3 1. The banking offices covered by these data include U.S. offices and foreign branches 2. Organization of Petroleum Exporting Countries, shown individually; other members of U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and covered include U.S. agencies and branches of foreign banks. Beginning March 1994, the United Arab Emirates); and Bahrain and Oman (not formally members of OPEC). data include large foreign subsidiaries of U.S. banks. The data also include other types of 3. Excludes Liberia. Beginning March 1994 includes Namibia. U.S. depository institutions as well as some types of brokers and dealers. To eliminate 4. As of December 1992, excludes other republics of the former Soviet Union. duplication, the data are adjusted to exclude the claims on foreign branches held by a U.S. 5. As of December 1992, excludes Croatia, Bosnia and Hercegovinia, and Slovenia. office or another foreign branch of the same banking institution. 6. Includes Canal Zone. These data are on a gross claims basis and do not necessarily reflect the ultimate 7. Foreign branch claims only. country risk or exposure of U.S. banks. More complete data on the country risk exposure 8. Includes New Zealand, Liberia, and international and regional organizations. of U.S. banks are available in the quarterly Country Exposure Lending Survey published by the Federal Financial Institutions Examination Council. 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 States' Millions of dollars, end of period 1993 1994 1995 Type of liability, and area or country 11999911 11999922 11999933 Dec. Mar. June Sept. Dec. Mar. 1 Total 44,708 45,511 50,369 50,369 52,059 55,383 57,204 54,644 51,434R 2 Payable in dollars 39,029 37,456 38,750 38,750 38,552 42,957 42,734 39,700 37,546r 3 Payable in foreign currencies 5,679 8,055 11,619 11,619 13,507 12,426 14,470 14,944 13,888 By type 4 Financial liabilities 22,518 23,841 28,959 28,959 30,413 33,245 35,850 32,848 29,852 5 Payable in dollars 18,104 16,960 18,545 18,545 18,930 22,819 23,262 19,792 17,745 6 Payable in foreign currencies 4,414 6,881 10,414 10,414 11,483 10,426 12,588 13,056 12,107 7 Commercial liabilities 22,190 21,670 21,410 21,410 21,646 22,138 21,354 21,796 21,582r 8 Trade payables 9,252 9,566 8,811 8,811 8,976 9,913 9,552 10,013 10,128r 9 Advance receipts and other liabilities . .. 12,938 12,104 12,599 12,599 12,670 12,225 11,802 11,783 11,454 10 Payable in dollars 20,925 20,496 20,205 20,205 19,622 20,138 19,472 19,908 19,801r 11 Payable in foreign currencies 1,265 1,174 1,205 1,205 2,024 2,000 1,882 1,888 1,781 By area or country Financial liabilities 12 Europe 12,003 13,387 18,810 18,810 20,510 23,689 23,792 20,870 16,804 13 Belgium and Luxembourg 216 414 175 175 525 524 661 495 612 14 France 2,106 11,,662233 2,539 2,539 2,606 1,590 2,241 1,727 2,046 15 Germany 682 888899 975 975 1,214 939 1,467 1,961 1,755 16 Netherlands 1,056 606 534 534 564 533 648 552 633 17 Switzerland 408 569 634 634 1,200 631 633 688 883 18 United Kingdom 6,528 8,610 13,332 13,332 13,793 18,255 16,827 14,709 10,025 19 Canada 292 544 859 859 508 698 618 625 1,817 20 Latin America and Caribbean 4,784 4,053 3,359 3,359 3,554 3,125 3,139 3,021 3,024 21 Bahamas 537 379 1,148 1,148 1,158 1,052 1,112 926 931 22 Bermuda 114 114 0 0 120 115 15 80 149 23 Brazil 6 19 18 18 18 18 7 207 58 24 British West Indies 3,524 2,850 1,533 1,533 1,613 1,297 1,344 1,160 1,231 25 Mexico 7 12 17 17 14 13 15 0 10 26 Venezuela 4 6 5 5 5 5 5 5 5 27 Asia2 5,381 5,818 5,689 5,689 5,650 5,694 8,149 8,147 8,011 28 Japan 4,116 4,750 4,620 4,620 4,638 4,760 6,947 7,013 6,990 29 Middle Eastern oil-exporting countries" 13 19 23 23 24 24 31 35 27 30 Africa 6 6 133 133 133 9 133 135 156 4 0 123 123 124 0 123 123 122 31 Oil-exporting countries4 52 33 109 109 58 30 19 50 40 32 All other5 Commercial liabilities 8,701 7,398 6,835 6,835 6,550 6,921 6,867 6,855 6,898r 33 Europe 248 298 239 239 251 254 287 231 272r 34 Belgium and Luxembourg 1,039 700 655 655 554 712 742 763 695r 35 France 1,052 729 684 684 577 670 552 611 508r 36 Germany 710 535 688 688 628 649 674 723 575r 37 Netherlands 575 350 375 375 388 473 391 335 389 38 Switzerland 2,297 2,505 2,047 2,047 2,151 2,311 2,351 2,450 2,856r 39 United Kingdom 40 Canada 1,014 1,002 879 879 1,039 1,070 1,068 1,038 1,199' 41 Latin America and Caribbean 1,355 1,533 1,666 1,666 1,908 2,007 1,790 1,865 l,534r 42 Bahamas 3 3 21 21 8 2 6 19 8 43 Bermuda 310 307 350 350 493 418 200 345 265 44 Brazil 219 209 216 216 211 217 148 163 97r 45 British West Indies 107 33 27 27 20 24 33 23 29 46 Mexico 307 457 483 483 556 705 673 576 507r 47 Venezuela 94 142 126 126 150 194 192 279 273 48 Asia2 9,334 10,594 10,992 10,992 10,939 10,979 10,514 11,077 10,947r 49 Japan 3,721 3,612 4,314 4,314 4,617 4,389 4,235 4,808 4,793r 50 Middle Eastern oil-exporting countries' 1,498 1,889 1,542 1,542 1,542 1,841 1,688 1,610 l,800r 51 Africa 715 568 464 464 490 523 482 442 463r 52 Oil-exporting countries4 327 309 171 171 199 247 271 262 248 53 Other5 1,071 575 574 574 720 638 633 519 541 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 • November 1995 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1993 1994 1995 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999911 11999922 11999933 Dec. Mar. June Sept. Dec. Mar. 1 Total 45,262 45,073 48,197 48,197 49,125 48,436 50,320 55,783 51,380r 2 Payable in dollars 42,564 42,281 44,920 44,920 45,746 44,763 46,839 52,641 47,055r 3 Payable in foreign currencies 2,698 2,792 3,277 3,277 3,379 3,673 3,481 3,142 4,325 By type 4 Financial claims 27,882 26,509 27,528 27,528 28,461 27,064 28,672 32,714 27,894r 5 Deposits 20,080 17,695 15,681 15,681 15,973 15,769 16,570 18,645 16,547r 6 Payable in dollars 19,080 16,872 15,146 15,146 15,471 15,164 16,009 18,194 15,953r 7 Payable in foreign currencies 1,000 823 535 535 502 605 561 451 594 8 Other financial claims 7,802 8,814 11,847 11,847 12,488 11,295 12,102 14,069 11,347 9 Payable in dollars 6,910 7,890 10,655 10,655 11,301 9,972 10,914 13,009 10,180 10 Payable in foreign currencies 892 924 1,192 1,192 1,187 1,323 1,188 1,060 1,167 11 Commercial claims 17,380 18,564 20,669 20,669 20,664 21,372 21,648 23,069 23,486r 12 Trade receivables 14,468 16,007 17,666 17,666 17,769 18,552 18,867 20,204 20,537r 13 Advance payments and other claims 2,912 2,557 3,003 3,003 2,895 2,820 2,781 2,865 2,949 14 Payable in dollars 16,574 17,519 19,119 19,119 18,974 19,627 19,916 21,438 20,922r 15 Payable in foreign currencies 806 1,045 1,550 1,550 1,690 1,745 1,732 1,631 2,564 By area or country Financial claims 16 Europe 13,441 9,331 7,249 7,249 7,257 6,698 8,042 77,,663388 7,222 17 Belgium and Luxembourg 13 8 134 134 125 83 114 8866 69 18 France 269 764 826 826 790 995 831 800 805 19 Germany 283 326 526 526 466 459 413 540 443 20 Netherlands 334 515 502 502 503 472 503 429 606 21 Switzerland 581 490 530 530 535 509 747 523 490 22 United Kingdom 11,534 6,252 3,535 3,535 3,699 3,062 4,326 4,395 3,867 23 Canada 2,642 1,833 2,032 2,032 2,207 3,080 3,164 3,801 4,064r 24 Latin America and Caribbean 10,717 13,893 16,031 16,031 15,968 14,591 14,808 18,723 14,798 25 Bahamas 827 778 1,310 1,310 1,285 1,281 1,070 2,329 905 26 Bermuda 8 40 125 125 34 39 52 27 37 27 Brazil 351 686 654 654 672 466 411 520 487 28 British West Indies 9,056 11,747 12,536 12,536 12,704 11,792 12,143 14,802 12,574 29 Mexico 212 445 868 868 850 614 655 606 472 30 Venezuela 40 29 161 161 26 33 32 35 27 31 Asia 640 864 1,657 1,657 2,550 2,234 2,175 1,835 1,457 32 Japan 350 668 892 892 1,657 1,349 662 931 584 33 Middle Eastern oil-exporting countries2 5 3 3 3 5 2 19 141 4 34 Africa 57 83 99 99 76 74 87 249 77 35 Oil-exporting countries3 1 9 1 1 0 1 1 0 9 36 All other4 385 505 460 460 403 387 396 468 276 Commercial claims 37 Europe 8,193 8,451 9,097 9,097 8,772 8,925 8,783 9,579 9,086r 38 Belgium and Luxembourg 194 189 184 184 177 179 174 217 200r 39 France 1,585 1,537 1,947 1,947 1,830 1,779 1,766 1,886 l,798r 40 Germany 955 933 1,018 1,018 947 938 880 1,046 1,002r 41 Netherlands 645 552 423 423 355 294 330 314 335' 42 Switzerland 295 362 432 432 415 686 538 559 562 43 United Kingdom 2,086 2,094 2,369 2,369 2,342 2,434 2,490 2,554 2,412' 44 Canada 1,121 1,286 1,360 1,360 1,483 1,468 1,503 1,543 1,997' 45 Latin America and Caribbean 2,655 3,043 3,284 3,284 3,573 3,903 3,971 4,147 4,119r 46 Bahamas 13 28 11 11 13 18 34 9 16 47 Bermuda 264 255 182 182 222 295 246 234 202 48 Brazil 427 357 463 463 422 502 473 614 676' 49 British West Indies 41 40 71 71 58 67 49 83 58 50 Mexico 842 924 994 994 1,014 1,047 1,137 1,244 1,106' 51 Venezuela 203 345 296 296 296 305 394 355 291 52 4,591 4,866 5,906 5,906 5,851 6,141 6,433 6,745 6,974' 53 Japan 1,899 1,903 2,173 2,173 2,353 2,359 2,448 2,497 2,728r 54 Middle Eastern oil-exporting countries2 620 693 716 716 668 616 616 700 689' 55 Africa 430 554 521 521 515 492 462 473 475' 56 Oil-exporting countries3 95 78 85 85 102 90 68 76 75 57 Other4 390 364 501 501 470 443 496 582 835 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

Securities Holdings and Transactions A63 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1995 1995 Transaction, and area or country 1993 1994 J J a u n ly .- Jan. Feb. Mar. Apr. May June Julyp U.S. corporate securities STOCKS 1 Foreign purchases 319,664 350,558 246,110 24,999 29,443 35,332 30,082 38,769 45,429 42,056 2 Foreign sales 298,086 348,648 241,621 25,893 29,685 37,653 29,206 36,087 43,199 39,898 3 Net purchases, or sales (—) 21,578 1,910 4,489 -894 -242 -2,321 876 2,682 2,230 2,158 4 Foreign countries 21,306 1,900 4,555 -930 -197 -2,291 877 2,692 2,238 2,166 5 Europe 10,658 6,717 440 -516 -10 -1,304 165 381 -44 1,768 6 France -103 -201 -496 -255 -27 -250 -80 -66 -79 261 7 Germany 1,642 2,110 -1,460 -157 -55 -243 -261 -528 -224 8 8 Netherlands -602 2,251 1,831 278 232 296 349 174 70 432 9 Switzerland 2,986 -30 -2,312 -389 -78 -475 -673 -476 -201 -20 10 United Kingdom 4,559 840 3,743 253 -51 -309 1,125 1,382 243 1,100 11 Canada -3,213 -1,160 -1,464 129 27 -333 -197 75 -740 -425 12 Latin America and Caribbean 5,719 -2,108 4,590 991 766 -243 570 -26 1,651 881 13 Middle East1 -321 -1,142 -379 -22 -133 -73 59 -87 -99 -24 14 Other Asia 8,198 -1,207 1,130 -1,469 -851 -342 314 2,013 1,358 107 15 Japan 3,825 1,190 -1,932 -860 -541 -321 29 86 -466 141 16 Africa 63 29 -5 -36 0 -10 -10 41 15 -5 17 Other countries 202 771 243 -7 4 14 -24 295 97 -136 18 Nonmonetary international and regional organizations 272 10 -66 36 -45 -30 -1 -10 -8 -8 BONDS2 19 Foreign purchases 283,824 291,084 160,139 19,247 22,789 25,390 18,163 22,830 27,934 23,786 20 Foreign sales 217,824 229,520 110,924 12,626 16,354 17,552 14,111 16,609 18,774 14,898 21 Net purchases, or sales (—) 66,000 61,564 49,215 6,621 6,435 7,838 4,052 6,221 9,160 8,888 22 Foreign countries 65,462 60,679 49,623 6,417 6,489 8,151 4,035 6,309 9,167 9,055 23 Europe 22,587 38,708 39,073 6,807 6,037 4,976 2,271 4,944 7,772 6,266 24 France 2,346 242 -428 157 296 -85 -874 27 44 7 25 Germany 887 657 2,484 1,516 526 -176 -83 -17 667 51 26 Netherlands -290 3,322 691 -241 126 154 -37 191 -59 557 27 Switzerland -627 1,055 382 -85 304 -61 -87 124 -130 317 28 United Kingdom 19,686 33,283 35,675 5,416 4,800 5,248 3,396 4,764 7,062 4,989 29 Canada 1,668 2,958 1,498 245 175 289 184 277 159 169 30 Latin America and Caribbean 15,691 5,442 3,151 -655 -480 1,285 889 678 289 1,145 31 Middle East' 3,248 771 1,218 59 119 328 326 -26 64 348 32 Other Asia 20,846 12,153 4,473 -28 595 1,150 356 426 785 1,189 33 Japan 11,569 5,486 2,771 -396 132 570 275 871 293 1,026 34 Africa 1,149 -7 44 8 -4 22 -11 -5 47 -13 35 Other countries 273 654 166 -19 47 101 20 15 51 -49 36 Nonmonetary international and regional organizations 538 885 -408 204 -54 -313 17 -88 -7 -167 Foreign securities 37 Stocks, net purchases, or sales (—) -62,691 -47,232 -22,252 -159 -1,086 -2,844 -2,148 — 3,639R -4,154 -8,222 38 Foreign purchases 245,490 386,942 194,038 26,303 27,154 28,995 24,485 29,216R 29,290 28,595 39 Foreign sales 308,181 434,174 216,290 26,462 28,240 31,839 26,633 32,855R 33,444 36,817 40 Bonds, net purchases, or sales (—) -80,377 -9,332 -21,169 -802 -1,851 -1,189 -799 —4,293R -7,265 -4,970 41 Foreign purchases 745,952 848,334 500,119 68,120 61,226 79,056 53,639 75,191R 96,154 66,733 42 Foreign sales 826,329 857,666 521,288 68,922 63,077 80,245 54,438 79,484 103,419 71,703 43 Net purchases, or sales (—), of stocks and bonds .... -143,068 -56,564 -43,421 -961 -2,937 -4,033 -2,947 —7,932r -11,419 -13,192 44 Foreign countries -143,232 -57,084 -42,862 -1,025 -2,773 -3,944 -3,103 —7,936r -11,108 -12,973 45 Europe -100,872 -2,726 -24,839 1,599 -1,290 -1,871 -1,902 -7,485R -5,857 -8,033 46 Canada -15,664 -7,481 -4,655 -187 850 -1,150 -1,195 -5 -1,217 -1,751 47 Latin America and Caribbean -7,600 -18,387 -3,718 -308 -2,496 -1,282 584 483 -288 -411 48 Asia -15,159 -24,272 -10,212 -2,044 13 9 -533 -1,388 -2,940 -3,329 49 Africa -185 -467 -224 1 -116 85 -14 -68 -67 -45 50 Other countries -3,752 -3,751 786 -86 266 265 -43 527 -739 596 51 Nonmonetary international and regional organizations 164 520 -559 64 -164 -89 156 4 -311 -219 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, 2. Includes state and local government securities and securities of U.S. government Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • November 1995 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (—) during period 1995 1995 AArreeaa oorr ccoouunnttrryy 11999933 11999944 J J a u n ly .- Jan. Feb. Mar. Apr. May June Julyp 1 Total estimated 23,552 78,796 108,183 9,578 14,103 9,211 6,400 14,519 22,578 31,794 2 Foreign countries 23,368 78,632 107,434 10,252 13,385 9,107 6,416 14,568 22,395 31,311 3 Europe -2,373 38,608 39,252 3,258 13,294 3,109 3,152 509 2,665 13,265 4 Belgium and Luxembourg 1,218 1,098 -359 134 107 51 62 -512 -148 -53 5 Germany -9,976 5,709 -2,762 60 -543 1,461 1,216 -4,129 -1,866 1,039 6 Netherlands -515 1,254 3,900 2,388 -239 -7 -243 40 1,078 883 7 Sweden 1,421 794 420 -35 97 30 -70 211 63 124 8 Switzerland -1,501 481 283 141 165 -418 -173 353 9 206 9 United Kingdom 6,197 23,438 30,183 579 10,448 3,099 2,251 5,203 1,359 7,244 10 Other Europe and former U.S.S.R 783 5,834 7,587 -9 3,259 -1,107 109 -657 2,170 3,822 11 Canada 10,309 3,491 5,060 3,177 1,486 434 -1,391 201 433 720 12 Latin America and Caribbean -4,561 -10,179 7,932 636 -3,268 -2,332 3,212 3,803 5,368 513 13 Venezuela 390 -319 680 -211 329 387 184 -16 121 -114 14 Other Latin America and Caribbean -5,795 -20,493 7,151 3,028 -3,325 -3,358 2,189 2,425 5,158 1,034 IS Netherlands Antilles 844 10,633 101 -2,181 -272 639 839 1,394 89 -407 16 20,582 47,042 53,881 3,577 1,730 8,445 1,189 9,845 12,605 16,490 17 Japan 17,070 29,518 29,948 3,444 2,316 4,167 1,487 6,291 5,585 6,658 18 Africa 1,156 240 275 -9 49 -9 -36 39 242 -1 19 Other -1,745 -570 1,034 -387 94 -540 290 171 1,082 324 20 Nonmonetary international and regional organizations 184 164 749 -674 718 104 -16 -49 183 483 21 International -330 526 322 -708 608 458 -294 356 -409 311 22 Latin American regional 653 -154 254 -6 199 -367 228 -528 629 99 MEMO 23 Foreign countries 23,368 78,632 107,434 10,252 13,385 9,107 6,416 14,568 22,395 31,311 24 Official institutions 1,306 41,822 36,828 1,829 2,110 4,022 3,144 — l,774r 10,850r 16,647 25 Other foreign2 22,062 36,810 70,606 8,423 11,275 5,085 3,272 16,342r 11,545r 14,664 Oil-exporting countries 26 Middle East2 -8,836 -38 3,770 -360 -89 152 733 -1,063 815 3,582 27 Africa3 -5 0 2 0 0 1 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 Sept. 30, 1995 Rate on Sept. 30, 1995 Rate on Sept. 30, 1995 Country Country Country Month Month Month effective effective effective Austria. . 3.5 Aug. 1995 Germany. . . 3.5 Aug. 1995 Norway 4.75 Feb. 1994 Belgium. 3.5 Aug. 1995 Italy 9.0 June 1995 Switzerland 2.0 Sept. 1995 Canada.. 6.71 Sept. 1995 Japan 0.5 Sept. 1995 United Kingdom 12.0 Sept. 1992 Denmark 5.0 Aug. 1995 Netherlands 3.5 Aug. 1995 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 1995 TTyyppee oorr ccoouunnttrryy 11999922 11999933 11999944 Mar. Apr. May June July Aug. Sept. 1 Eurodollars 3.70 3.18 4.63 6.15 6.13 6.03 5.89 5.79 5.79 5.73 2 United Kingdom 9.56 5.88 5.45 6.61 6.64 6.64 6.63 6.73 6.74 6.71 3 Canada 6.76 5.14 5.57 8.32 8.16 7.56 7.07 6.69 6.62 6.67 4 Germany 9.42 7.17 5.25 4.96 4.58 4.49 4.43 4.46 4.35 4.11 5 Switzerland 7.67 4.79 4.03 3.62 3.33 3.29 3.09 2.77 2.79 2.72 6 Netherlands 9.25 6.73 5.09 5.03 4.60 4.41 4.21 4.14 4.02 3.86 7 France 10.14 8.30 5.72 7.77 7.60 7.29 7.04 6.31 5.81 5.79 8 Italy 13.91 10.09 8.45 10.98 10.94 10.38 10.91 10.93 10.45 10.31 9 Belgium 9.31 8.10 5.65 6.21 5.22 5.16 4.62 4.52 4.41 4.20 10 Japan 4.39 2.96 2.24 2.11 1.55 1.31 1.16 .91 .82 .58 1. Rates are for three-month interbank loans, with the following exceptions: Canada, finance company paper; Belgium, three-month Treasury bills; and Japan, CD rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • November 1995 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1995 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999922 11999933 11999944 Apr. May June July Aug. Sept. 1 Australia/dollar2 73.521 67.993 73.161 73.564 72.716 71.959 72.792 74.137 75.398 2 Austria/schilling 10.992 11.639 11.409 9.720 9.912 9.854 9.765 10.168 10.311 3 Belgium/franc 32.148 34.581 33.426 28.419 29.009 28.790 28.562 29.735 30.167 4 Canada/dollar 1.2085 1.2902 1.3664 1.3762 1.3609 1.3775 1.3612 1.3552 1.3514 5 China, P.R./yuan 5.5206 5.7795 8.6404 8.4421 8.3370 8.3206r 8.3207 8.3253 8.3372 6 Denmark/krone 6.0372 6.4863 6.3561 5.4391 5.5194 5.4604 5.4073 5.6060 5.6802 7 Finland/markka 4.4865 5.7251 5.2340 4.2884 4.3386 4.3134 4.2592 4.3170 4.3879 8 France/franc 5.2935 5.6669 5.5459 4.8503 4.9869 4.9172 4.8307 4.9727 5.0562 9 Germany/deutsche mark 1.5618 1.6545 1.6216 1.3812 1.4096 1.4012 1.3886 1.4456 1.4660 10 Greece/drachma 190.81 229.64 242.50 225.19 228.46 226.56 225.45 232.38 236.24 11 Hong Kong/dollar 7.7402 7.7357 7.7290 7.7336 7.7351 7.7356 7.7385 7.7416 7.7375 12 India/rupee 28.156 31.291 31.394 31.407 31.418 31.404 31.385 31.592 33.197 13 Ireland/pound2 170.42 146.47 149.69 162.80 161.98 162.87 163.96 160.25 158.68 14 Italy Aira 1,232.17 1,573.41 1,611.49 1,710.89 1,652.78 1,639.75 1,609.71 1,607.18 1,614.03 15 Japan/yen 126.78 111.08 102.18 83.69 85.11 84.64 87.40 94.74 100.70 16 Malaysia/ringgit 2.5463 2.5738 2.6237 2.4787 2.4684 2.4396 2.4500 2.4813 2.5121 17 Netherlands/guilder 1.7587 1.8585 1.8190 1.5474 1.5779 1.5686 1.5557 1.6195 1.6421 18 New Zealand/dollar2 53.792 54.127 59.358 66.723 66.740 66.947 67.417 65.687 65.602 19 Norway/krone 6.2142 7.1009 7.0553 6.2050 6.2980 6.2387 6.1710 6.3438 6.4144 20 Portugal/escudo 135.07 161.08 165.93 145.89 148.40 147.63 145.88 149.88 152.55 21 Singapore/dollar 1.6294 1.6158 1.5275 1.3986 1.3947 1.3953 1.3984 1.4116 1.4344 22 South Africa/rand 2.8524 3.2729 3.5526 3.6035 3.6574 3.6627 3.6404 3.6402 3.6638 23 South Korea/won 784.66 805.75 806.93 770.61 764.43 763.88 760.05 768.88 772.68 24 Spain/peseta 102.38 127.48 133.88 124.14 123.22 121.71 119.71 123.45 125.77 25 Sri Lanka/rupee 44.013 48.211 49.170 49.371 49.558 50.210 50.899 51.227 52.467 26 Sweden/krona 5.8258 7.7956 7.7161 7.3455 7.3072 7.2631 7.1749 7.2383 7.1486 27 Switzerland/franc 1.4064 1.4781 1.3667 1.1384 1.1693 1.1588 1.1556 1.1962 1.2199 28 Taiwan/dollar 25.160 26.416 26.465 25.491 25.537 25.784 26.278 27.234 27.476 29 Thailand/baht 25.411 25.333 25.161 24.572 24.663 24.672 24.755 24.960 25.133 30 United Kingdom/pound2 176.63 150.16 153.19 160.73 158.74 159.48 159.52 156.68 155.57 MEMO 31 United States/dollar3 86.61 93.18 91.32 81.81 82.73 82.27 81.90 84.59 86.00 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

A67 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases June 1995 A76 SPECIAL TABLES—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 1994 February 1995 A68 February 1995 May 1995 A68 May 1995 August 1995 A68 August 1995 November 1995 A68 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1994 February 1995 All December 31, 1994 May 1995 A72 March 31, 1995 October 1995 A68 June 30, 1995 November 1995 A72 Pro forma balance sheet and income statements for priced service operations March 31, 1992 August 1992 A80 June 30, 1992 October 1992 A70 March 31, 1995 August 1995 A76 June 30, 1995 October 1995 A72 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 Residential lending reported under the Home Mortgage Disclosure Act 1994 September 1995 A68 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • November 1995 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-11, 19951 Commercial and Industrial Loans Weighted Loan rate (percent) Loans Loans made Amount of Average size average secured under Partici- (tho lo u a s n a s n ds (thousands maturity2 Weighted by commit- pation loans of dollars) of dollars) average collateral ment (percent) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 15,643,324 8,166 6.45 2 One month or less (excluding overnight) 9,834,330 1,703 6.75 16.3 60.7 5.4 3 Fixed rate 8,400,098 3,005 6.62 11.6 56.9 4.1 4 Floating rate 1,434,232 481 7.53 43.6 83.2 12.6 5 More than one month and less than one year 12,310,265 233 140 7.69 41.6 76.5 7.3 6 Fixed rate 6,802,401 323 98 7.13 31.5 75.3 9.6 7 Floating rate 5,507,863 173 193 8.38 54.0 78.0 4.4 8 Demand7 14,720,353 258 8.19 56.6 71.9 6.4 9 Fixed rate 4,763,186 1,031 6.61 22.0 64.1 8.4 10 Floating rate 9,957,166 190 8.95 73.1 75.6 5.5 11 Total short-term 52,508,271 447 7.28 31.9 68.3 12 Fixed rate (thousands of dollars) 35,609,009 1,171 25 6.64 16.4 64.2 4.6 13 1-99 359,224 15 145 10.09 79.6 39.4 .3 14 100-499 453,454 230 119 8.22 66.4 63.2 6.7 15 500-999 521,986 700 49 7.46 48.5 78.9 8.1 16 1,000-4,999 5,453,699 2,303 41 7.16 33.7 74.5 7.8 17 5,000-9,999 5,571,905 6,712 27 6.76 19.9 63.7 6.5 18 10,000 or more 23,248,742 21,091 17 6.39 8.9 62.0 3.4 19 Floating rate (thousands of dollars) 16,899,262 194 156 8.64 64.4 77.0 5.7 20 1-99 1,741,837 27 205 10.24 81.3 87.2 1.9 21 100-499 3,317,730 193 208 9.71 73.7 89.2 4.5 22 500-999 1,437,296 678 194 9.30 69.0 86.6 6.3 23 1,000-4,999 3,810,794 2,061 142 8.68 60.7 88.4 7.7 24 5,000-9,999 1,901,454 6,779 126 8.04 61.2 80.1 6.3 25 10,000 or more 4,690,150 22,710 127 7.30 54.4 51.2 6.0 26 Total long-term 7,975,094 344 8.34 67.6 67.5 27 Fixed rate (thousands of dollars). . 1,907,077 187 8.13 59.0 57.0 4.5 28 1-99 151,152 18 10.03 88.2 29.4 .6 29 100-499 226,214 190 9.25 83.5 54.1 9.0 30 500-999 125,221 692 7.85 68.6 81.6 2.2 31 1,000 or more 1,404,489 4,756 7.77 51.1 58.2 4.4 32 Floating rate (thousands of dollars) 6,068,017 466 8.40 70.2 70.8 5.4 33 1-99 224,726 29 10.05 89.5 73.2 2.3 34 100-499 776,202 217 9.61 83.0 76.4 6.5 35 500-999 494,278 685 9.17 72.7 85.2 9.0 36 1,000 or more 4,572,811 5,276 8.03 66.9 68.2 5.0 Loan rate (percent) Days Effective Nominal LOANS MADE BELOW PRIME1" 37 Overnight6 15,315,150 9,806 6.38 6.18 9.1 62.6 1.5 38 One month or less (excluding overnight) 9,407,700 5,319 10 6.61 6.41 13.6 60.0 5.4 39 More than one month and less than one year 9,114,352 962 120 6.95 6.74 28.4 73.6 8.4 40 Demand' 7,531,930 1,984 6.65 6.52 39.2 57.4 5.7 41 Total short-term 41,369,133 2,493 6.61 63.5 42 Fixed rate 34,411,986 3,240 23 6.53 6.35 14.3 63.7 4.4 43 Floating rate 6,957,147 1,164 131 6.99 6.78 47.4 62.1 6.3 44 Total long-term 4,706,925 1,202 7.41 7.18 45 Fixed rate 1,199,589 506 7.17 6.98 56.6 70.2 4.5 46 Floating rate .. . 3,507,336 2,267 7.49 7.25 65.4 63.8 3.9 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A69 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-11, 1995'—Continued Commercial and industrial loans—Continued Weighted Loan rate (percent) Loans Loans made Amount of Average size average secured under Partici- ( o t f h o l d o u o a s l n a la s n r d s s ) ( o t f h o d u o s l a la n r d s s ) ma D tu a r y i s t y2 W e a f v f e e e i c g r t a h i g t v e e e d 3 c (p o e ll r b a c y t e e n ra t) l ( c p o e m m r e c m n e t n i t t - ) pa ( t p io e n rc e l n o t a ) n s LARGE BANKS 1 Overnight6 10,512,047 7,961 2.0 2 One month or less (excluding overnight) 7,244,226 4,170 6.74 14.2 55.3 6.7 3 Fixed rate 6,248.700 6,164 6.67 11.5 51.3 4.9 4 Floating rate 995.527 1,376 7.22 31.4 80.8 17.9 5 More than one month and less than one year 7,388,862 994 105 36.7 85.8 8.9 6 Fixed rate 4,832,781 3,051 76 28.5 83.1 11.6 7 Floating rate 2.556,082 437 161 52.3 90.8 3.9 8 Demand7 8,144,051 393 7.66 46.3 66.8 6.8 9 Fixed rate 3,178,195 2,931 6.39 10.7 60.7 4.8 10 Floating rate 4,965,857 253 8.48 69.1 70.7 8.2 11 Total short-term 33,289,187 1,066 7.02 26.1 69.5 5.7 12 Fixed rate (thousands of dollars) 24,771,721 4,952 21 6.61 14.6 66.7 5.0 13 1-99 18,404 28 114 8.77 68.2 74.3 2.5 14 100-499 193,848 265 68 7.83 56.7 77.1 7.4 15 500-999 334.645 709 51 7.45 44.8 78.6 9.0 16 1,000-4,999 3,872,927 2,316 35 7.09 31.5 70.6 7.7 17 5,000-9,999 4,315,075 6,753 23 6.73 15.3 59.0 7.1 18 10,000 or more 16,036,822 19,432 16 6.43 9.2 67.4 3.6 19 Floating rate (thousands of dollars) 8,517,466 325 119 8.21 59.6 77.9 8.0 20 1-99 539,751 32 194 10.08 74.0 88.8 1.9 21 100-499 1,437,010 204 189 9.67 72.4 89.9 3.9 22 500-999 676.149 658 177 9.29 64.6 91.8 8.0 23 1,000-4,999 1,932,075 2,024 116 8.48 51.1 91.7 9.7 24 5,000-9,999 1,057,020 6,721 134 7.94 46.4 85.1 9.2 25 10,000 or more 2,875,462 25,706 79 6.81 59.9 54.7 9.7 26 Total long-term 5,577,542 1,016 8.27 72.2 67.9 27 Fixed rate (thousands of dollars) .. 1,170,395 1,407 8.03 62.0 64.0 4.9 28 1-99 9,898 27 9.31 85.8 48.4 .0 29 100-499 46,375 232 8.18 75.8 74.3 2.6 30 500-999 44,131 668 7.49 54.0 84.5 2.9 31 1,000 or more 1,069,992 5,266 8.03 61.5 62.9 5.1 32 Floating rate (thousands of dollars) 4,407,147 946 8.33 75.0 68.9 2.8 33 1-99 68,989 36 9.70 88.7 83.4 2.1 34 100-499 362,137 217 9.40 76.4 86.3 5.0 35 500-999 307,225 686 9.20 74.5 91.9 5.7 36 1,000 or more 3,668,797 5,730 8.13 74.6 65.0 2.3 Loan rate (percent) Days Effective Nominal LOANS MADE BELOW PRIME1" 37 Overnight6 10,344,685 8,941 6.42 6.23 10.1 69.7 1.9 38 One month or less (excluding overnight) 7,032,540 6,380 6.65 6.44 12.8 54.9 6.7 39 More than one month and less than one year 6,235,040 3,111 6.95 6.74 30.0 85.0 9.6 40 Demand' 5,142,796 3,130 6.48 6.37 37.2 51.7 5.0 41 Total short-term 28,755,062 4,868 5.3 42 Fixed rate 24,348,647 5,767 6.56 6.38 13.8 66.2 4.8 43 Floating rate 4,406,415 2,615 6.83 6.64 53.6 66.0 7.8 44 Total long-term 3,507,079 3,301 53 7.49 7.26 45 Fixed rate 716,315 1,744 7.10 6.93 69.5 86.6 5.4 46 Floating rate .. . 2,790,764 4,282 7.59 7.34 74.5 61.9 .3 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • November 1995 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-11, 1995'—Continued Commercial and industrial loans—Continued A (th m o l o o u u a s n n a s t n d o s f A ( v th e o ra u g s e a n s d i s z e W m a a v e t e i u g r r a h i g t t e y e d 2 We L ig o h a t n e d r ate (percent) s L ec o b u a y r n e s d Lo c a o u n m n s d m e m i r t a - de pat P io a n rt i l c o i- ans of dollars) of dollars) average collateral ment (percent) Days effective3 (percent) (percent) OTHER BANKS 1 Overnight6 5,131,277 8,622 2 One month or less (excluding overnight) 2,590,103 641 6.78 22.0 75.8 1.7 3 Fixed rate 2,151,398 1,207 6.49 12.0 73.2 2.0 4 Floating rate 438,705 195 8.24 71.1 88.7 .4 5 More than one month and less than one year 4,921,403 108 193 8.18 62.6 4.8 6 Fixed rate 1,969,621 101 151 7.49 38.8 56.3 4.9 7 Floating rate 2,951,782 114 220 8.63 55.6 66.9 4.8 8 Demand7 6,576,301 181 8.85 69.3 78.2 5.9 9 Fixed rate 1,584,992 448 7.06 44.7 70.9 15.7 10 Floating rate 4,991,310 152 9.41 77.1 80.5 2.8 11 Total short-term 19,219,084 223 7.74 41.8 66.2 12 Fixed rate (thousands of dollars) 10,837,288 426 35 6.71 20.5 58.5 3.9 13 1-99 340,821 15 146 10.16 80.2 37.6 .1 14 100-499 259,605 210 155 8.51 73.6 52.8 6.2 15 500-999 187,341 684 45 7.48 55.0 79.4 6.5 16 1,000-4,999 1,580,771 2,270 59 7.32 39.1 84.1 8.0 17 5,000-9,999 1,256,831 6,577 46 6.83 35.8 79.6 4.4 18 10,000 or more 7,211,919 26,035 21 6.30 8.2 49.9 2.9 19 Floating rate (thousands of dollars) 8,381,796 138 194 9.08 69.2 76.1 3.4 20 1-99 1,202,086 25 207 10.32 84.6 86.5 1.9 21 100-499 1,880,720 186 217 9.75 74.7 88.7 4.9 22 500-999 761,147 697 205 9.30 72.9 81.9 4.9 23 1,000-4,999 1,878,720 2,101 184 8.89 70.5 85.1 5.7 24 5,000-9,999 844,435 6,853 105 8.17 79.7 73.9 2.8 25 10,000 or more 1,814,688 19,169 194 45.6 45.7 .0 26 Total long-term 2,397,552 135 8.50 56.7 66.5 9.8 27 Fixed rate (thousands of dollars). . 736,681 79 8.29 54.4 45.7 3.9 28 1-99 141,255 17 10.08 88.3 28.1 .7 29 100-499 179,839 181 9.52 85.4 48.9 10.6 30 500-999 81,090 705 8.04 76.5 80.0 1.9 31 1,000 or more 334,498 3,630 6.94 18.0 43.1 2.2 32 Floating rate (thousands of dollars) 1,660,870 199 8.60 57.7 75.7 12.5 33 1-99 155,737 26 10.21 89.8 68.7 2.3 34 100-499 414,065 216 9.80 88.9 67.6 7.7 35 500-999 187,053 684 9.13 69.6 74.2 14.4 36 1,000 or more 904,014 3,993 7.66 35.4 81.0 16.0 Loan rate (percent) Days Effective Nominal' LOANS MADE BELOW PRIME10 37 Overnight6 4,970464 12,278 6.29 6.10 7.0 47.7 38 One month or less (excluding overnight) 2,375,160 3,564 10 6.50 6.31 16.1 75.2 39 More than one month and less than one year 2,879,313 386 185 6.95 6.74 25.0 48.8 5.9 40 Demand7 2,389,134 1,110 * 7.03 6.85 43.3 69.6 7.3 41 Total short-term 12,614,071 1,180 55 57.3 3.3 42 Fixed rate 10,063,339 1,573 31 6.46 6.27 15.4 57.8 3.3 43 Floating rate 2,550,732 594 185 7.25 7.03 36.7 55.5 3.7 44 Total long-term 1,199,846 33.1 45 Fixed rate 483,274 247 7.28 7.07 37.4 45.9 3.1 46 Floating rate .. . 716,572 800 7.08 6.88 30.2 71.3 17.7 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A71 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-11, 1995—Continued NOTES 1. The survey of terms of bank lending to business collects data on gross loan 4. The chances are about two out of three that the average rate shown would differ by extensions made during the first full business week in the mid-month of each quarter by a less than the amount of the standard error from the average rate that would be found by a sample of 340 commercial banks of all sizes. A sample of 250 banks reports loans to complete survey of lending at all banks. farmers. The sample data are blown up to estimate the lending terms at all insured 5. The rate used to price the largest dollar volume of loans. Base pricing rates include commercial banks during that week. The estimated terms of bank lending are not intended the prime rate (sometimes referred to as a bank's "basic" or "reference" rate); the federal for use in collecting the terms of loans extended over the entire quarter or residing in the funds rate; domestic money market rates other than the federal funds rate; foreign money portfolios of those banks. Construction and land development loans include both unsecure market rates; and other base rates not included in the foregoing classifications. loans and loans secured by real estate. Thus, some of the construction and land develop- 6. Overnight loans mature on the following business day. ment loans would be reported on the statement of condition as real estate loans and the 7. Demand loans have no stated date of maturity. remainder as business loans. Mortgage loans, purchased loans, foreign loans, and loans of 8. Nominal (not compounded) annual interest rate calculated from the stated rate and less that $1,000 are excluded from the survey. As of September 30, assets of most of the other terms of the loans and weighted by loan size. large banks were at least $7.0 billion. For all insured banks, total assets averaged $275 9. Calculated by weighting the prime rate reported by each bank by the volume of million. loans reported by that bank, summing the results, and then averaging over all reporting 2. Average maturities are weighted by loan size; excludes demand loans. banks. 3. Effective (compounded) annual interest rate calculated from the stated rate and other 10. The proportion of loans made at rates below the prime may vary substantially from terms of the loans and weighted by loan size. the proportion of such loans outstanding in banks' portfolios. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • November 1995 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1995'—Continued Millions of dollars, except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 1 Total assets4 789,789 341,335 612,909 281,034 76,283 33,458 60,497 18,386 2 Claims on nonrelated parties 708,499 200,137 548,038 167,025 70,542 15,567 57,321 12,203 3 Cash and balances due from depository institutions 166,142 137,775 147,986 121,306 5,726 5,095 10,791 10,287 4 Cash items in process of collection and unposted debits 2,742 0 2,591 0 6 0 105 0 5 Currency and coin (U.S. and foreign) 21 n.a. 14 n.a. 2 n.a. 1 n.a. 6 Balances with depository institutions in United States 97,030 75,058 85,413 64,749 3,969 3,391 7,045 6,701 7 U.S. branches and agencies of other foreign banks (including IBFs) 91,402 72,278 80.440 62,052 3,649 3,361 6,915 6,651 8 Other depository institutions in United States (including IBFs) 5,628 2,781 4,973 2,697 320 30 129 50 y Balances with banks in foreign countries and with foreign central banks 65,724 62,717 59,441 56,556 1,719 1,704 3,614 3,586 10 Foreign branches of U.S. banks 2,187 1,894 1,977 1,695 14 13 178 178 11 Other banks in foreign countries and foreign central banks . 63,537 60,823 57,464 54,861 1,705 1,691 3,436 3,408 12 Balances with Federal Reserve Banks 626 n.a. 527 n.a. 31 n.a. 27 n.a. 13 Total securities and loans 398,536 51,615 270,139 36,290 58,960 9,592 40,040 1,602 14 Total securities, book value 89,842 11,573 82,156 10,371 4,295 610 2,787 567 15 U.S. Treasury 23,554 n.a. 22,383 n.a. 637 n.a. 428 n.a. 16 Obligations of U.S. government agencies and corporations . . . 24,010 n.a. 23,431 n.a. 351 n.a. 57 n.a. 17 Other bonds, notes, debentures, and corporate stock (including state and local securities) 42,279 11,573 36,342 10,371 3,307 610 2,303 567 18 Securities of foreign governmental units 13,108 4,858 11,803 4,427 683 267 523 143 iy All Other 29,171 6,715 24,539 5,944 2,624 343 1,779 424 20 Federal funds sold and securities purchased under agreements to resell 44,015 5,374 41,811 5,169 624 89 1,071 65 21 U.S. branches and agencies of other foreign banks 10,491 3,524 9,793 3,398 384 31 120 65 22 Commercial banks in United States 6,803 133 6,360 118 158 0 21 0 23 Other 26,721 1,718 25,658 1,654 82 58 930 0 24 Total loans, gross 308,848 40,054 188,082 25,927 54,706 8,984 37,260 1,035 25 LESS: Unearned income on loans 155 12 99 8 41 2 7 0 26 EQUALS: Loans, net 308,694 40,042 187,983 25,919 54,665 8,982 37,253 1,035 Total loans, gross, by category 27 Real estate loans 36,978 284 21,100 108 10,899 175 2,864 0 28 Loans to depository institutions 36,961 24,293 22,628 13,875 9,057 7,051 1,268 587 2y Commercial banks in United States (including IBFs) 17,415 9,861 9,234 4,093 7,037 5,374 924 327 30 U.S. branches and agencies of other foreign banks 15,356 9,443 7,974 3,829 6,838 5,269 405 308 31 Other commercial banks in United States 2.059 418 1,260 264 198 105 518 19 32 Other depository institutions in United States (including IBFs) 67 0 17 0 50 0 0 0 33 Banks in foreign countries 19,479 14,432 13,377 9,783 1,970 1,677 344 260 34 Foreign branches of U.S. banks 530 403 507 392 10 10 0 0 35 Other banks in foreign countries 18,949 14,029 12,870 9,390 1,960 1,667 344 260 36 Loans to other financial institutions 27,620 705 22,427 573 2,181 19 2,508 82 37 Commercial and industrial loans 187,057 12,462 105,280 9,271 31,670 1,668 28,490 346 38 U.S. addressees (domicile) 163,311 111 88,259 97 28,732 6 27,359 0 39 Non-U.S. addressees (domicile) 23,746 12,351 17,021 9,175 2,y39 1,662 1,131 346 40 Acceptances of other banks 999 96 691 91 127 0 98 0 41 U.S. banks 256 0 225 0 19 0 3 0 42 Foreign banks 742 96 466 90 107 0 95 0 43 Loans to foreign governments and official institutions (including foreign central banks) 3,232 1,966 2,659 1,800 177 72 115 20 44 Loans for purchasing or carrying securities (secured and unsecured) 8,727 36 8,520 36 154 0 35 0 45 All other loans 5,769 180 3,273 139 443 0 1,880 0 46 Assets held in trading accounts 48,398 329 45,809 258 147 71 2,442 0 47 All other assets 51,408 5,044 42,293 4,002 5,085 720 2,977 249 48 Customers' liabilities on acceptances outstanding 12,213 n.a. 8,229 n.a. 2,955 n.a. 456 n.a. 49 U.S. addressees (domicile) 9,695 n.a. 6,085 n.a. 2,898 n.a. 379 n.a. 50 Non-U.S. addressees (domicile) 2,517 n.a. 2,144 n.a. 57 n.a. 77 n.a. 51 Other assets including other claims on nonrelated parties .... 39,195 5,044 34,063 4,002 2,130 720 2,521 249 52 Net due from related depository institutions5 81,291 141,198 64,871 114,009 5,741 17,890 3,176 66,,118822 53 Net due from head office and other related depository institutions5 81,291 n.a. 64,871 n.a. 5,741 n.a. 3,176 n.a. 54 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 141,198 n.a. 114,009 n.a. 17,890 n.a. 6,182 55 Total liabilities4 789,789 341,335 612,909 281,034 76,283 33,458 60,497 18,386 56 Liabilities to nonrelated parties 671,150 314,288 558,292 260,356 57,215 32,717 37,544 14,362 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A73 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1995'—Continued Millions of dollars, except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T I l B o u F t d a s i l ng I o B n F ly s exc T I l B o u t F d a s i l ng I o B n F ly s exc T I l B o u t F d a s i l ng I o B n F ly s 57 Total deposits and credit balances 158,457 245,050 132,923 226,977 6,417 5.147 10,455 7,434 58 Individuals, partnerships, and corporations 101,784 12,980 80.025 8.493 5,630 551 8,630 46 59 U.S. addressees (domicile) 89.014 136 73,241 136 3,871 0 7,794 0 60 Non-U.S. addressees (domicile) 12,770 12,843 6,783 8,357 1,759 551 836 46 61 Commercial banks in United States (including IBFs) 31,575 67,571 29.341 63,047 326 1,943 1.578 2,257 62 U.S. branches and agencies of other foreign banks 18,344 63,139 17,491 59,023 95 1.748 506 2,076 63 Other commercial banks in United States 13,231 4,432 11,849 4,023 231 195 1,073 181 64 Banks in foreign countries 11,492 140,557 10,768 133,448 242 1,853 234 4,250 65 Foreign branches of U.S. banks 3,808 5,798 3,564 5.286 100 132 143 339 66 Other banks in foreign countries 7,683 134,759 7,203 128,162 142 1,721 91 3,911 67 Foreign governments and official institutions (including foreign central banks) 3.872 23 819 3,516 21,888 193 800 33 68 All other deposits and credit balances 9,288 123 8,874 101 6 0 3 22 69 Certified and official checks 446 400 20 7 70 Transaction accounts and credit balances (excluding IBFs) .... 7,974 6,402 334 346 71 Individuals, partnerships, and corporations 6,077 4,780 277 334 72 U.S. addressees (domicile) 4,414 3,776 207 328 73 Non-U.S. addressees (domicile) 1,663 1,005 70 6 74 Commercial banks in United States (including IBFs) 61 54 3 0 75 U.S. branches and agencies of other foreign banks 7 5 0 0 76 Other commercial banks in United States 53 49 2 0 77 Banks in foreign countries 788 632 25 1 78 Foreign branches of U.S. banks 1 0 0 0 79 Other banks in foreign countries 787 632 25 1 80 Foreign governments and official institutions (including foreign central banks) 435 387 4 33 81 All other deposits and credit balances 168 148 6 1 82 Certified and official checks 446 400 20 7 83 Demand deposits (included in transaction accounts and credit balances) 7,478 6,204 255 333322 84 Individuals, partnerships, and corporations 5,687 4.664 205 321 85 U.S. addressees (domicile) 4,252 3,713 154 315 86 Non-U.S. addressees (domicile) 1,434 952 51 b 87 Commercial banks in United States (including IBFs) 50 46 11 0 88 U.S. branches and agencies of other foreign banks 7 n.a. 5 n.a. 00 n.a. 0 n.a. 89 Other commercial banks in United States 43 41 0 0 90 Banks in foreign countries 758 605 25 11 91 Foreign branches of U.S. banks 1 0 0 00 92 Other banks in foreign countries 757 605 25 1 93 Foreign governments and official institutions (including foreign central banks) 419 338833 33 33 94 All other deposits and credit balances 118 105 1 0 95 Certified and official checks 446 400 20 7 96 Nontransaction accounts (including MMDAs, excluding IBFs) 150,483 126,521 6,083 10,110 97 Individuals, partnerships, and corporations 95,707 75,244 5,353 8,296 98 U.S. addressees (domicile) 84,600 69,466 3,664 7,467 99 Non-U.S. addressees (domicile) 11,107 5,779 1,689 829 100 Commercial banks in United States (including IBFs) 31,515 29,286 324 1,578 101 U.S. branches and agencies of other foreign banks 18,337 17,486 95 506 10? Other commercial banks in United States 13,178 11,800 229 1.072 103 Banks in foreign countries 10,704 10,136 217 233 104 Foreign branches of U.S. banks 3,807 3,564 100 143 105 Other banks in foreign countries 6,896 6,572 117 90 106 Foreign governments and official institutions (including foreign central banks) 3,437 3,128 190 00 107 All other deposits and credit balances 9,120 8,726 0 2 108 1BF deposit liabilities 245,050 226,977 5,147 7,434 109 Individuals, partnerships, and corporations 12,980 8,493 551 46 110 U.S. addressees (domicile) 136 136 0 0 111 Non U.S. addressees (domicile) 12.843 8,357 551 46 117 Commercial banks in United States (including IBFs) 67,571 63,047 1,943 2,257 113 U.S. branches and agencies of other foreign banks 63,139 59,023 1,748 2,076 114 Other commercial banks in United States n.a. 4,432 n.a. 4,023 n.a. 195 n.a. 181 115 Banks in foreign countries 140,557 133,448 1,853 4,250 116 Foreign branches of U.S. banks 5,798 5.286 132 339 117 Other banks in foreign countries 134,759 128,162 1,721 3,911 118 Foreign governments and official institutions (including foreign central banks) 23,819 21,888 800 859 119 All other deposits and credit balances 123 101 0 22 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • November 1995 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1995'—Continued Millions of dollars, except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 120 Federal funds purchased and securities sold under agreements to repurchase 74,012 12,678 61,705 8,320 6,263 2,494 5,608 1,687 121 U.S. branches and agencies of other foreign banks 12,760 4,650 7,595 2,216 3,141 1,648 1,841 692 122 Other commercial banks in United States 9,811 426 6,619 70 1,771 34 1,339 322 123 Other 51,441 7,602 47,491 6,035 1,350 812 2,427 674 124 Other borrowed money 105,424 51,187 57,499 20,483 34,989 24,462 10,396 5,109 125 Owed to nonrelated commercial banks in United States (including IBFs) 36,105 20,493 13,640 4,751 17,672 13,043 3,560 2,234 126 Owed to U.S. offices of nonrelated U.S. banks 7,943 1,645 4,435 463 2,538 1,090 621 45 127 Owed to U.S. branches and agencies of nonrelated foreign banks 28,162 18, $49 9,205 4,288 15,134 11,953 2,939 2,189 128 Owed to nonrelated banks in foreign countries 30,998 28,947 16,306 14,458 11,340 11,210 2,629 2,622 129 Owed to foreign branches of nonrelated U.S. banks 1,717 1,389 743 444 905 885 33 33 130 Owed to foreign offices of nonrelated foreign banks 29,281 27,558 15,563 14,014 10,435 10,325 2,596 2,589 131 Owed to others 38,321 1,747 27,553 1,275 5,977 209 4,207 254 132 All other liabilities 88,207 5,373 79,189 4,575 4,399 614 3,650 131 133 Branch or agency liability on acceptances executed and outstanding 12,500 n.a. 8,470 n.a. 2,919 n a. 460 n.a. 134 Trading liabilities 42,325 129 41,067 124 82 5 1,160 1 135 Other liabilities to nonrelated parties 33,382 5,244 29,653 4,452 1,397 609 2,030 131 136 Net due to related depository institutions5 118,640 27,047 54,617 20,678 19,068 740 22,953 4,024 137 Net owed to head office and other related depository institutions5 118,640 n a. 54,617 n.a. 19,068 n a. 22,953 n.a. 138 Net owed to establishing entity, head office, and other related depository institutions5 n.a. 27,047 n.a. 20,678 n.a. 740 n.a. 4,024 MEMO 139 Non-interest-bearing balances with commercial banks in United States 1,022 0 769 0 112 0 42 0 140 Holding of commercial paper included in total loans 912 881 1 0 141 Holding of own acceptances included in commercial and industrial loans 3,986 2,779 1,025 69 142 Commercial and industrial loans with remaining maturity of one year or less 109,988 62,615 18,571 17,243 143 Predetermined interest rates 65,055 n.a. 36,500 n.a. 11,523 n.a. 12,157 n a. 144 Floating interest rates 4444,,993333 26,115 7,048 55,,008866 145 Commercial and industrial loans with remaining maturity of more than one year 77,069 42,665 13,099 11,247 146 Predetermined interest rates 19,021 10,943 3,297 3,406 147 Floating interest rates 58,049 31,722 9,802 7,840 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A75 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1995'—Continued Millions of dollars, except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T I l B o u t F d a s i l n g I o B n F ly s exc T I l B o u t F d a s i l n g I o B n F ly s 111144448888 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 152,761 t 129,059 1 6,636 ! 10,317 1 111144449999 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 115,058 98,161 4,103 6,907 111155550000 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 111155551111 TTTTiiiimmmmeeee CCCC oooorrrr DDDD mmmm ssss oooo iiiinnnn rrrreeee ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 30,203 n1.a. 24,874 n.a. 1,561 n1.a. 3,036 n.a. wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 7,500 6,023 \ 971 373 \ All states2 New York California Illinois inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 111155552222 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 0 0 0 0 0 0 0 0 111155553333 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 62,982 n.a. 29,889 n.a. 26,958 n.a. 4,893 n.a. 111155554444 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd5555 535 0 254 0 122 0 47 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, item, either because the item is not an eligible IBF asset or liability or because that level "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The of detail is not reported for IBFs. From December 1981 through September 1985, IBF form was first used for reporting data as of June 30, 1980, and was revised as of December data were included in all applicable items reported. 31, 1985. From November 1972 through May 1980, U.S. branches and agencies of foreign 4. Total assets and total liabilities include net balances, if any, due from or owed to banks had filed a monthly FR 886a report. Aggregate data from that report were available related banking institutions in the United States and in foreign countries (see note 5). On through the Federal Reserve statistical release G. 11, last issued on July 10, 1980. Data in the former monthly branch and agency report, available through the G. 11 statistical this table and in the G. 11 tables are not strictly comparable because of differences in release, gross balances were included in total assets and total liabilities. Therefore, total reporting panels and in definitions of balance sheet items. IBF, international banking asset and total liability figures in this table are not comparable to those in the G. 11 tables. facility. 5. Related depository institutions includes the foreign head office and other U.S. and 2. includes the District of Columbia. foreign branches and agencies of a bank, a bank's parent holding company, and majority- 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q owned banking subsidiaries of the bank and of its parent holding company (including to permit banking offices located in the United States to operate international banking subsidiaries owned both directly and indirectly). facilities (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate 6. In some cases two or more offices of a foreign bank within the same metropolitan column. These data are either included in or excluded from the total columns as indicated area file a consolidated report. in the headings. The notation "n.a." indicates that no IBF data have been reported for that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Index to Statistical Tables References are to pages A3-A75 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, 22, 23 Banks, by classes, 18-23 Turnover, 17 Domestic finance companies, 36 Depository institutions Federal Reserve Banks, 11 Reserve requirements, 9 Financial institutions, 28 Reserves and related items, 4, 5, 6, 13 Foreign banks, U.S. branches and agencies, 23, 72-75 Deposits (See also specific types) Automobiles Banks, by classes, 4, 18-23 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, 11, 12, 21-24, 26 foreign countries (See Interest rates) Bankers balances, 18-23, 72-75. (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Bonds (See also U.S. government securities) Dividends, corporate, 35 New issues, 34 Rates, 26 EMPLOYMENT, 45 Branch banks, 23 Eurodollars, 26 Business activity, nonfinancial, 45 Business expenditures on new plant and equipment, 35 FARM mortgage loans, 38 Business loans (See Commercial and industrial loans) Federal agency obligations, 5, 10, 11, 12, 31, 32 Federal credit agencies, 33 CAPACITY utilization, 46 Federal finance Capital accounts Debt subject to statutory limitation, and types and ownership Banks, by classes, 18 of gross debt, 30 Federal Reserve Banks, 11 Receipts and outlays, 28, 29 Central banks, discount rates, 65 Treasury financing of surplus, or deficit, 28 Certificates of deposit, 26 Treasury operating balance, 28 Commercial and industrial loans Federal Financing Bank, 33 Commercial banks, 21, 22 Federal funds, 7, 21, 22, 23, 26, 28 Weekly reporting banks, 21-23 Federal Home Loan Banks, 33 Commercial banks Federal Home Loan Mortgage Corporation, 33, 37, 38 Assets and liabilities, 18-23, 68-71 Federal Housing Administration, 33, 37, 38 Commercial and industrial loans, 18-23 Federal Land Banks, 38 Consumer loans held, by type and terms, 39 Federal National Mortgage Association, 33, 37, 38 Deposit interest rates of insured, 16 Federal Reserve Banks Loans sold outright, 22 Condition statement, 11 Real estate mortgages held, by holder and property, 38 Discount rates (See Interest rates) Terms of lending, 68-71 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 Business credit, 36 Consumption expenditures, 52, 53 Loans, 39 Corporations Paper, 24, 26 Profits and their distribution, 35 Financial institutions, loans to, 21, 22, 23 Security issues, 34, 65 Float, 5 Cost of living (See Consumer prices) Flow of funds, 40-44 Credit unions, 39 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 5, 14 agencies, 22, 23, 72-75 Customer credit, stock market, 27 Foreign currency operations, 11 Foreign deposits in U.S. banks, 5, 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

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 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 US. reserve assets, 54 Insurance companies, 30, 38 Residential mortgage loans, 37 Interest rates Retail credit and retail sales, 39, 45 Bonds, 26 Commercial banks, 68-71 SAVING Consumer installment credit, 39 Flow of funds, 40-44 Deposits, 16 National income accounts, 51 Federal Reserve Banks, 8 Savings institutions, 38, 39, 40 Foreign central banks and foreign countries, 65 Savings deposits (See Time and savings deposits) Money and capital markets, 26 Securities (See also specific types) Mortgages, 37 Federal and federally sponsored credit agencies, 33 Prime rate, 25 Foreign transactions, 63 International capital transactions of United States, 53-65 New issues, 34 International organizations, 55, 56, 58, 61, 62 Prices, 27 Inventories, 51 Special drawing rights, 5, 11, 53, 54 Investment companies, issues and assets, 35 State and local governments Investments (See also specific types) Deposits, 21, 22 Banks, by classes, 18-23 Holdings of U.S. government securities, 30 Commercial banks, 4, 18-23 New security issues, 34 Federal Reserve Banks, 11, 12 Ownership of securities issued by, 21, 23 Financial institutions, 38 Rates on securities, 26 Stock market, selected statistics, 27 LABOR force, 45 Stocks (See also Securities) Life insurance companies (See Insurance companies) New issues, 34 Loans (See also specific types) Prices, 27 Banks, by classes, 18-23 Commercial banks, 18-23 Student Loan Marketing Association, 33 Federal Reserve Banks, 5, 6, 8, 11, 12 Financial institutions, 38 Insured or guaranteed by United States, 37, 38 TAX receipts, federal, 29 Thrift institutions, 4. (See also Credit unions and Savings MANUFACTURING institutions 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 UNEMPLOYMENT, 45 Mining production, 48 U.S. government balances Mobile homes shipped, 49 Commercial bank holdings, 18-23 Monetary and credit aggregates, 4, 13 Treasury deposits at Reserve Banks, 5, 11, 28 Money and capital market rates, 26 U.S. government securities Money stock measures and components, 4, 14 Bank holdings, 18-23, 30 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 32 Mutual funds, 35 Federal Reserve Bank holdings, 5, 11, 12, 30 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 11, 30, 64 NATIONAL defense outlays, 29 Open market transactions, 10 National income, 51 Outstanding, by type and holder, 30, 31 Rates, 26 OPEN market transactions, 10 US. international transactions, 53-66 Utilities, production, 48 PERSONAL income, 52 Prices VETERANS Administration, 37, 38 Consumer and producer, 45, 50 Stock market, 27 WEEKLY reporting banks, 18-23 Prime rate, 25 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

A78 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD W. KELLEY, JR. ALAN S. BLINDER, Vice Chairman LAWRENCE B. LINDSEY 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 LAWRENCE SLIFMAN, Associate Director WILLIAM W. WILES, Secretary MARTHA S. SCANLON, Deputy Associate Director JENNIFER J. JOHNSON, Deputy Secretary PETER A. TINSLEY, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary and Ombudsman DAY W. RADEBAUGH, JR., Assistant Secretary1 FLINT BRAYTON, Assistant Director DAVID S. JONES, Assistant Director STEPHEN A. RHOADES, Assistant Director DIVISION OF BANKING CHARLES S. STRUCKMEYER, Assistant Director SUPERVISION AND REGULATION ALICE PATRICIA WHITE, Assistant Director RICHARD SPILLENKOTHEN, Director JOYCE K. ZICKLER, Assistant Director STEPHEN C. SCHEMERING, Deputy Director JOHN J. MINGO, Senior Adviser DON E. KLINE, Associate Director GLENN B. CANNER, Adviser WILLIAM A. RYBACK, Associate Director FREDERICK M. STRUBLE, Associate Director DIVISION OF MONETARY AFFAIRS HERBERT A. BIERN, Deputy Associate Director ROGER T. COLE, Deputy Associate Director DONALD L. KOHN, Director JAMES I. GARNER, Deputy Associate Director DAVID E. LINDSEY, Deputy Director HOWARD A. AMER, Assistant Director BRIAN F. MADIGAN, Associate Director GERALD A. EDWARDS, JR., 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 1. On loan from the Division of Information Resources Management Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 SUSAN M. PHILLIPS JANET L. YELLEN OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director SHEILA CLARK, EEO Programs Director DAVID L. ROBINSON, Deputy Director (Finance and Control) DIVISION OF HUMAN RESOURCES LOUISE L. ROSEMAN, Associate Director MANAGEMENT CHARLES W. BENNETT, Assistant Director JACK DENNIS, JR., Assistant Director DAVID L. SHANNON, Director JOHN R. WEIS, Associate Director EARL G. HAMILTON, Assistant Director ANTHONY V. DIGIOIA, Assistant Director JEFFREY C. MARQUARDT, Assistant Director JOSEPH H. HAYES, JR., Assistant Director JOHN H. PARRISH, Assistant Director FRED HOROWITZ, Assistant Director FLORENCE M. YOUNG, Assistant Director OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller BRENT L. BOWEN, Inspector General STEPHEN J. CLARK, Assistant Controller (Programs and DONALD L. ROBINSON, Assistant Inspector General BARRY R. SNYDER, Assistant Inspector General Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director MARIANNE M. EMERSON, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director EDWARD T. MULRENIN, Assistant Director ELIZABETH B. RIGGS, Assistant Director RICHARD C. STEVENS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 Federal Reserve Bulletin • November 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 ALTERNATE MEMBERS EDWARD G. BOEHNE ROBERT D. MCTEER GARY H. STERN JERRY L. JORDAN ERNEST T. PATRIKIS STAFF DONALD L. KOHN, Secretary and Economist THOMAS E. DAVIS, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary WILLIAM G. DEWALD, Associate Economist JOSEPH R. COYNE, Assistant Secretary WILLIAM C. HUNTER, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID E. LINDSEY, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel FREDERIC S. MISHKIN, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel LARRY J. PROMISEL, Associate Economist MICHAEL J. PRELL, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist LAWRENCE SLIFMAN, Associate Economist LYNN E. BROWNE, Associate Economist DAVID J. STOCKTON, Associate Economist PETER R. FISHER, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL ANTHONY P. TERRACCIANO, President MARSHALL N. CARTER, Vice President MARSHALL N. CARTER, First District ROGER L. FITZSIMONDS, Seventh District WALTER V. SHIPLEY, Second District ANDREW B. CRAIG, III, Eighth District ANTHONY P. TERRACCIANO, Third District RICHARD M. KOVACEVICH, Ninth District FRANK V. CAHOUET, Fourth District CHARLES E. NELSON, Tenth District RICHARD G. TILGHMAN, Fifth District CHARLES R. HRDLICKA, Eleventh District CHARLES E. RICE, Sixth District EDWARD A. CARSON, Twelfth District HERBERT V. PROCHNOW, Secretary Emeritus JAMES ANNABLE, Co-Secretary WILLIAM J. KORSVIK, Co-Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 CONSUMER ADVISORY COUNCIL JAMES L. WEST, Tijeras, New Mexico, Chairman KATHARINE W. MCKEE, Durham, North Carolina, Vice Chairman D. DOUGLAS BLANKE, St. Paul, Minnesota THOMAS L. HOUSTON, Dallas, Texas THOMAS R. BUTLER, Riverwoods, Illinois TERRY JORDE, Cando, North Dakota ROBERT A. COOK, Baltimore, Maryland EUGENE I. LEHRMANN, Madison, Wisconsin ALVIN J. COWANS, Orlando, Florida RONALD A. PRILL, Minneapolis, Minnesota MICHAEL FERRY, St. Louis, Missouri LISA RICE-COLEMAN, Toledo, Ohio ELIZABETH G. FLORES, Laredo, Texas JOHN R. RINES, Detroit, Michigan EMANUEL FREEMAN, Philadelphia, Pennsylvania JULIA M. SEWARD, Richmond, Virginia NORMA L. FREIBERG, New Orleans, Louisiana ANNE B. SHLAY, Philadelphia, Pennsylvania DAVID C. FYNN, Cleveland, Ohio REGINALD J. SMITH, Kansas City, Missouri LORI GAY, LOS Angeles, California JOHN E. TAYLOR, Washington, D.C. ROBERT G. GREER, Houston, Texas LORRAINE VANETTEN, Troy, Michigan KENNETH R. HARNEY, Chevy Chase, Maryland GRACE W. WEINSTEIN, Englewood, New Jersey GAIL K. HILLEBRAND, San Francisco, California LILY K. YAO, Honolulu, Hawaii RONALD A. HOMER, Boston, Massachusetts ROBERT O. ZDENEK, Newark, New Jersey THRIFT INSTITUTIONS ADVISORY COUNCIL CHARLES JOHN KOCH, Cleveland, Ohio, President STEPHEN D. TAYLOR, Miami, Florida, Vice President E. LEE BEARD, Hazleton, Pennsylvania DAVID F. HOLLAND, Burlington, Massachusetts JOHN E. BRUBAKER, Hillsborough, California JOSEPH C. SCULLY, Chicago, Illinois MALCOLM E. COLLIER, Lakewood, Colorado JOHN M. TIPPETS, DFW Airport, Texas GEORGE L. ENGELKE, JR., Lake Success, New York LARRY T. WILSON, Raleigh, North Carolina BEVERLY D. HARRIS, Livingston, Montana WILLIAM W. ZUPPE, Spokane, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated MS-127, Board of Governors of the Federal Reserve System, monthly. (Requests must be prepaid.) Washington, DC 20551 or telephone (202) 452-3244 or FAX Consumer and Community Affairs Handbook. $75.00 per (202) 728-5886. When a charge is indicated, payment should year. accompany request and be made payable to the Board of Monetary Policy and Reserve Requirements Handbook. Governors of the Federal Reserve System or may be ordered $75.00 per year. via Mastercard or Visa. Payment from foreign residents should Securities Credit Transactions Handbook. $75.00 per year. be drawn on a U.S. bank. The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. Four vols. (Contains all four Handbooks plus substantial additional material.) $200.00 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. Rates for subscribers outside the United States are as follows 1994. 157 pp. and include additional air mail costs: ANNUAL REPORT. Federal Reserve Regulatory Service, $250.00 per year. ANNUAL REPORT: BUDGET REVIEW, 1994-95. Each Handbook, $90.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- $2.50 each in the United States, its possessions, Canada, COUNTRY MODEL, May 1984. 590 pp. $14.50 each. and Mexico. Elsewhere, $35.00 per year or $3.00 each. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. ANNUAL STATISTICAL DIGEST: period covered, release date, 440 pp. $9.00 each. number of pages, and price. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1981 October 1982 239 pp. $ 6.50 December 1986. 264 pp. $10.00 each. 1982 December 1983 266 pp. $ 7.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1983 October 1984 264 pp. $11.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1984 October 1985 254 pp. $12.50 1985 October 1986 231 pp. $15.00 1986 November 1987 288 pp. $15.00 EDUCATION PAMPHLETS 1987 October 1988 272 pp. $15.00 Short pamphlets suitable for classroom use. Multiple copies are 1988 November 1989 256 pp. $25.00 available without charge. 1980-89 March 1991 712 pp. $25.00 1990 November 1991 185 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages 1991 November 1992 215 pp. $25.00 Consumer Handbook to Credit Protection Laws 1992 December 1993 215 pp. $25.00 A Guide to Business Credit for Women, Minorities, and Small 1993 December 1994 281 pp. $25.00 Businesses Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System The Federal Open Market Committee SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $30.00 per year or $.70 each in the Federal Reserve Bank Board of Directors United States, its possessions, Canada, and Mexico. Else- Federal Reserve Banks where, $35.00 per year or $.80 each. Organization and Advisory Committees A Consumer's Guide to Mortgage Lock-Ins THE FEDERAL RESERVE ACT and other statutory provisions A Consumer's Guide to Mortgage Settlement Costs affecting the Federal Reserve System, as amended through A Consumer's Guide to Mortgage Refinancings August 1990. 646 pp. $10.00. Home Mortgages: Understanding the Process and Your Right REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL to Fair Lending RESERVE SYSTEM. How to File a Consumer Complaint ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Making Deposits: When Will Your Money Be Available? Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Making Sense of Savings Vol. II (Irregular Transactions). 1969. 116 pp. Each vol- SHOP: The Card You Pick Can Save You Money ume $2.25. Welcome to the Federal Reserve GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 When Your Home is on the Line: What You Should Know each. About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 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 ^^ CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MARof general interest. Requests to obtain single copies of the full KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, text or to be added to the mailing list for the series may be sent 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. 21pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Maps of the Federal Reserve System f ALASKA HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts Commonwealth of Puerto Rico and the U.S. Virgin by number and Reserve Bank city (shown on both Islands; the San Francisco Bank serves American pages) and by letter (shown on the facing page). Samoa, Guam, and the Commonwealth of the In the 12th District, the Seattle Branch serves Northern Mariana Islands. The Board of Governors Alaska, and the San Francisco Bank serves Hawaii. revised the branch boundaries of the System most The System serves commonwealths and terri- recently in December 1991. tories as follows: the New York Bank serves the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 1-A 2-B 3-C 4-D 5-E Pittsburgh A VT n i Buffalo jM 'i / I F \ MA NJ NY CT RI sc BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H TN—•Nashville WI Ml Detroit i y Louisville Jacksonville A*" " ^ ]_[ # Memp TN h is Little) Rock ( MS ATLANTA CHICAGO ST. LOUIS 9-1 MT ND iplli 11111 ••I mmj jjjjj 1||J Hi a> yijijj MINNEAPOLIS 10-J 12-L NB ! Omaha • • •M KANSAS CITY 11-K San Antonio1" DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 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 John C. Whitehead Ernest T. Patrikis 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 Walter A. Varvel Baltimore 21203 Michael R. Watson William J. Tignanelli1 Charlotte 28230 James O. Roberson DanM. Bechter1 Culpeper 22701 Julius Malinowski, Jr.2 ATLANTA 30303 Leo Benatar Robert P. Forrestal Hugh M. Brown JJaacckk GGuuyynnnn Donald E. Nelson1 Birmingham 35283 Patricia B. Compton FredR. Herr1 Jacksonville 32231 Lana Jane Lewis-Brent James D. Hawkins1 Miami 33152 Michael T. Wilson James T. Curry III Nashville 37203 James E. Dalton, Jr. 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 John D. Forsyth Roby L. Sloan1 ST. LOUIS 63166 Robert H. Quenon Thomas C. Melzer John F. McDonnell James R. Bowen Little Rock 72203 Janet M. Jones Robert A. Hopkins Louisville 40232 Daniel L. Ash Howard Wells Memphis 38101 Woods E. Eastland John P. Baumgartner MINNEAPOLIS 55480 Gerald A. Rauenhorst Gary H. Stern Jean D. Kinsey Colleen K. Strand Helena 59601 Matthew J. Quinn 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 Mark L. Mullinix Omaha 68102 LeRoy W. Thorn Harold L. Shewmaker DALLAS 75201 Cece Smith Robert D. McTeer, Jr. Roger R. Hemminghaus Tony J. Salvaggio El Paso 79999 W. Thomas Beard III Sammie C. Clay Houston 77252 Isaac H. Kempner III Robert Smith, III1 San Antonio 78295 Carol L. Thompson 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 Ross R. Runkel Raymond H. Laurence 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; Milwaukee, Wisconsin 53202; and Peoria, Illinois 61607. 1. Senior Vice President. 2. Assistant Vice President. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS The Federal Reserve Board publishes a series of Shop . . . The Card You Pick Can Save You Money pamphlets covering individual credit laws and topics, is designed to help consumers comparison shop when as pictured below. looking for a credit card. It contains the results of the Three booklets on the mortgage process are avail- Federal Reserve Board's survey of the terms of credit able: A Consumer's Guide to Mortgage Lock-Ins, A card plans offered by credit card issuers throughout Consumer's Guide to Mortgage Refinancings, and the United States. Because the terms can affect the A Consumer's Guide to Mortgage Settlement Costs. amount an individual pays for using a credit card, the These booklets were prepared in conjunction with the booklet lists the annual percentage rate (APR), annual Federal Home Loan Bank Board and in consultation fee, grace period, type of pricing (fixed or variable with other federal agencies and trade and consumer rate), and a telephone number for each card issuer groups. The Board also publishes the Consumer surveyed. Handbook to Credit Protection Laws, a complete Copies of consumer publications are available free guide to consumer credit protections. This forty-four- of charge from Publications Services, Mail Stop 127, page booklet explains how to shop and obtain credit, Board of Governors of the Federal Reserve System, how to maintain a good credit rating, and how to Washington, DC 20551. Multiple copies for classdispute unfair credit transactions. room use are also available free of charge. Business Credit for Women. Minorities, and Small Businesses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis