Federal Reserve Bulletin, 1996-11

VOLUME 82 • NUMBER 11 • NOVEMBER 1996 FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 983 BANK AND NONBANK COMPETITION FOR nomic expansion, before the House Committee SMALL BUSINESS CREDIT: EVIDENCE on Banking and Financial Services, Septem- FROM THE 1987 AND 1993 NATIONAL ber 12, 1996. SURVEYS OF SMALL BUSINESS FINANCES 1006 Susan M. Phillips, member, Board of Gover- Using newly available data from the Board's nors, discusses the recent losses by Sumitomo 1993 National Survey of Small Business Corporation in copper trading and their impli- Finances together with data from the 1987 cations for U.S. banks and markets and says survey, this article analyzes competition that Sumitomo has been meeting all of its between banks and nonbanks in the U.S. mar- obligations to U.S. banks and that the Federal ket for small business credit. It explores non- Reserve's involvement has been related princibank competition as an explanation for the pally to reviewing the exposure and role of decline in banks' share of business lending by U.S. banks that lent funds to Sumitomo or that examining sources of credit used by small dealt with the company in its copper-related firms. It examines both the bank and nonbank business as well as to assisting the Commodity shares of the dollar amount of credit to small Futures Trading Commission in its evaluation businesses, including how these shares have of Sumitomo's U.S. activities, before the House changed from 1987 to 1993, and the incidence Committee on Banking and Financial Services, of small business borrowing, which is defined September 18, 1996. as the percentage of firms using credit of a certain type or from a particular source. Overall, the results indicate that small businesses 1008 ANNOUNCEMENTS obtained a higher percentage of their credit from nonbanks in 1993 than in 1987 but that Meeting of the Consumer Advisory Council. this difference was small—about 2.0 percent- Amendment to section 20 of the Glass-Steagall age points. Act. Revisions to the official staff commentary to Regulation B (Equal Credit Opportunity). 996 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION FOR SEPTEMBER 1996 Revisions to Regulation M (Consumer Leasing). Industrial production increased 0.2 percent in September, to 127.1 percent of its 1987 aver- Revisions to Regulation Z (Truth in Lending). age, after a gain of 0.4 percent in August. Broadcast of an educational program on saving Utilization of industrial capacity edged down and investing. 0.1 percentage point, to 83.3 percent. IOOO STATEMENTS TO THE CONGRESS 1011 MINUTES OF THE FEDERAL OPEN MARKET COMMITTEE MEETING HELD ON Lawrence B. Lindsey, member, Board of Gov- AUGUST 20, 1996 ernors, discusses trends in consumer lending and says that the Board has been carefully At its meeting on August 20, 1996, the Commonitoring the effect of higher debt levels on mittee adopted a directive that called for mainthe potential for sustained noninflationary taining the existing degree of pressure on growth in the U.S. economy and does not reserve positions and that included a bias believe that current debt-service levels pose a toward the possible firming of reserve condithreat to the continuation of the present eco- tions during the intermeeting period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1017 LEGAL DEVELOPMENTS A112 INDEX TO STATISTICAL TABLES Various bank holding company, bank service A114 BOARD OF GOVERNORS AND STAFF corporation, and bank merger orders; and pending cases. A116 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A1 FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of Alls FEDERAL RESERVE BOARD September 26, 1996. PUBLICATIONS A3 GUIDE TO TABULAR PRESENTATION A120 MAPS OF THE FEDERAL RESERVE SYSTEM A4 Domestic Financial Statistics A42 Domestic Nonfinancial Statistics A 122 FEDERAL RESERVE BANKS, BRANCHES, A50 International Statistics AND OFFICES A63 GUIDE TO STATISTICAL RELEASES AND SPECIAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank and Nonbank Competition for Small Business Credit: Evidence from the 1987 and 1993 National Surveys of Small Business Finances Rebel A. Cole and John D. Wolken, of the Board's cal changes have facilitated competition from non- Division of Research and Statistics, and R. Louise bank sources. Nonbanks consist of thrift institutions Woodburn, of the Internal Revenue Service, prepared (savings and loan associations, savings banks, and this article. Amy Ashton and Ronnie McWilliams pro- credit unions), finance companies, insurance comvided research assistance. panies, mortgage companies, leasing companies, brokerage firms, other business firms, families and Using newly available data from the Board's 1993 individuals, and government sources of credit. National Survey of Small Business Finances together We explore nonbank competition as an explanation with data from the 1987 survey, we analyze competi- for the decline in banks' share of business lending by tion between banks and nonbanks in the U.S. market examining sources of credit used by small firms.2 for small business credit. According to many academ- Credit here is defined as loans and capital leases, ics and banking practitioners, the U.S. commercial excluding credit card debt and trade credit. Because banking industry has declined.1 In particular, during small firms are unlikely to have direct access to the late 1980s and the early 1990s, the record number money and capital markets, any decline in banks' of bank failures and mergers reduced the number of share of the aggregate dollar amount of credit procommercial banks in the United States. Also, there vided to these firms would be consistent with the has been an apparent decline in commercial banks' view that nonbanks are eroding this share. If banks share of lending. These occurrences have raised ques- have provided a constant or increasing share of the tions about the changing role of commercial banks in credit used by small firms, such evidence would run providing credit to key sectors, including business counter to the view that nonbanks are eroding this lending. share. Several explanations have been advanced for the We analyze the bank and nonbank shares of the decline in banks' share of business lending. In par- dollar amount of outstanding credit to small busiticular, technological changes in communications, nesses, including how these shares have changed information storage, and other sectors of the from 1987 to 1993. We also examine the incidence of economy—as well as globalization—have enabled an small business borrowing from banks and nonbanks, increasing number of large firms to gain direct access which is defined as the percentage of firms using to money and capital markets. The same technologi- credit of a certain type or from a particular source. The incidence data provide a more representative view of the credit services used by a "typical" small NOTE. MS. Woodburn is on detail to the Board's Division of Research and Statistics as a sampling statistician. firm than do the share data because larger firms have 1. See, for example, Allen N. Berger, Anil K. Kashyap, and a greater influence on market shares than on inci- Joseph M. Scalise, "The Transformation of the U.S. Banking Industry: dence. This distinction is important because the larger What a Long, Strange Trip It's Been," Brookings Papers on Economic Activity, 1:1995, pp. 55-218; John H. Boyd and Mark Gertler, firms in the survey account for the majority of the "Are Banks Dead? Or, Are the Reports Greatly Exaggerated?" Fed- dollar amount outstanding of small business credit eral Reserve Bank of Minneapolis, Quarterly Review (Summer 1994), pp. 2-23; Franklin R. Edwards and Frederic S. Mishkin, The Decline of Traditional Banking: Implications for Financial Stability and Regu- 2. More specifically, the results presented in this paper characterize latory Policy, Working Paper 4993 (National Bureau of Economic all enterprises operating under current ownership during 1992 and Research, January 1995); Edward C. Ettin, "The Evolution of the with fewer than 500 full-time-equivalent employees, excluding real North American Banking System" (paper prepared for the Experts' estate operators and lessors, real estate subdivides and developers, Meeting on Structural Changes in Financial Markets: Trends and real estate investment trusts, agricultural enterprises, financial institu- Practices, Organization for Economic Cooperation and Development, tions, not-for-profit institutions, government entities, and subsidiaries Paris, July 11-12, 1994); and Gary Gorton and Richard Rosen, controlled by other corporations. Full-time-equivalent employment is "Corporate Control, Portfolio Choice, and the Decline of Banking," calculated as the number of full-time employees plus one-half the Journal of Finance, vol. 50 (December 1995), pp. 1377-1420. number of part-time employees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 Federal Reserve Bulletin • November 1996 but for only a small proportion of the number of erage of the two surveys preclude comparisons of firms. For example, among small businesses, firms actual dollar amounts. Hence, this analysis cannot with more than $1 million in sales account for more address whether total lending to small businesses than two-thirds of credit but less than one-fifth of the rose or fell over the period. number of firms. This article provides background information about The sources for these data—the 1987 and 1993 macroeconomic changes that could be expected to National Surveys of Small Business Finances have influenced credit conditions over 1987-93, (NSSBF)—are unique.3 The NSSBF is a nationally reviews the types of credit supplied to small busirepresentative survey of small businesses sponsored nesses by banks and nonbanks, and tests whether by the Federal Reserve Board and the U.S. Small banks have lost market share to nonbanks. We use Business Administration to collect information about two different measures of market share—the percentthe sources and types of financial services obtained age of the aggregate dollar amount of credit used by by small businesses. The surveys are designed to be small businesses and the percentage of small busirepresentative of small businesses generally and pro- nesses using credit. vide data on bank and nonbank shares of the small Overall, our results indicate that small businesses business credit market.4 The NSSBF was conducted obtained a higher percentage of their credit from first in 1987 and again in 1993, making it possible to nonbanks in 1993 than in 1987 but that this differexamine changes in market share over that period. ence was small—about 2.0 percentage points. Banks Although the two surveys had somewhat different still provided more than 60 percent of the dollar value focuses, the data collected are sufficiently similar to of credit, excluding trade credit and credit card debt, allow comparisons of bank and nonbank market and dominated in the provision of credit lines used. shares across time.5 However, differences in the cov- However, the percentage of firms obtaining credit from banks dropped significantly, from 44.0 percent in 1987 to only 36.8 percent in 1993, whereas the 3. At the time this article was written, the 1993 NSSBF data were still in the editing stage and hence subject to revision. After data edits percentage of firms obtaining credit from nonbanks and other processing steps are completed, an announcement about the was stable at 32 percent.6 availability of the 1993 survey data and a user's manual will appear in Within the general category of nonbanks, the data the Federal Reserve Bulletin. 4. For information about alternative sources of data on small indicate that thrift institutions have lost about half businesses, see U.S. Small Business Administration, Handbook of of their dollar share, which fell from 7.4 percent to Small Business Data, 2d ed. (Government Printing Office, 1994), and 4.0 percent, of the small business credit market over The State of Small Business: A Report of the President, 1995 (Government Printing Office, 1996). 1987-93. The losses of market share by banks and Bank and thrift regulators began in 1993 to collect data on the thrift institutions primarily accrued to finance compaaggregate number and amount of small commercial loans outstanding nies, leasing companies, and brokerage firms. (loans of less than $1,000,000) at financial institutions, but these data cannot be used to estimate the shares of bank and nonbank lending. The surveys provide information about the differ- They reflect loans made by depository institutions but not loans made ent types of loans and various demographic characterby nondepository sources such as brokerage, finance, insurance, and istics of small businesses. Overall, mortgages have leasing companies. Surveys of small businesses conducted by trade organizations such become a much smaller share of small business debt, as the National Federation of Independent Businesses generally col- while borrowings under lines of credit became a lect information on the incidence of use. Information on dollar larger share between 1987 and 1993. The percentage amounts by source and loan type are rarely available. See also a 1996 survey conducted for the American Banker by Payment Systems, Inc. of small businesses that used credit lines, equipment ("Credit Lines, Leasing in Demand as Small Businesses' Needs loans, and capital leases rose significantly, while the Evolve," American Banker, September 9, 1996, pp. 9-11). percentage that used mortgages declined signifi- 5. The 1993 NSSBF focused on the availability of credit to small and minority-owned businesses, and the 1987 survey focused on the cantly. During this period, banks lost market share definition of banking markets. Both surveys, however, collected a disproportionately at medium-sized small businesses complete roster of the credit lines, loans, and leases obtained by each and at minority-owned firms. firm surveyed, including information on the amount of credit obtained and the identity of the lender. Because of broad changes in the While the evidence presented here suggests that coverage of the two surveys, valid comparisons between 1987 and nonbanks have somewhat eroded banks' share of 1993 data can be made only after statistical adjustments to sampling small business credit, it does not address bank and weights have been made to make them more comparable. See the appendix for a description of these weighting adjustments. For more nonbank competition in the provision of other finaninformation about the 1993 NSSBF, see Rebel A. Cole and John D. cial services used by small businesses, the most Wolken, "Financial Services Used by Small Businesses: Evidence prominent being checking and savings accounts. from the 1993 National Survey of Small Business Finances," Federal Reserve Bulletin, vol. 81 (July 1995), pp. 629-67. For more information about the 1987 NSSBF, see Gregory E. Elliehausen and John D. Wolken, "Banking Markets and the Use of Financial Services By Small and Medium-Sized Businesses," Federal Reserve Bulletin, 6. Tests of statistical significance are computed for the change vol. 76 (October 1990), pp. 801-17. statistics as discussed in the appendix. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank and Nonbank Competition for Small Business Credit 985 Indeed, 87.8 percent of small businesses used com- Following deregulation, the banking industry mercial banks for financial services during 1993, consolidated sharply via nearly 3,000 mergers during more than double the percentage of such firms using the 1987-93 period. These mergers reduced the ranks nonbanks.7 Whether banks have gained or lost ground of small banks, which tend to specialize in small to nonbanks in the provision of noncredit financial business lending, as larger banks acquired their services is an interesting topic for future analysis smaller competitors. About two-thirds of the acquired using data from the NSSBF. banks held less than $100 million in assets, while roughly half of the acquirers held more than $1 billion in assets. The percentage of industry assets at the BACKGROUND largest banks, those with assets of more than $100 billion, grew from 12.7 percent at the end of The 1980s and early 1990s were periods of tumultu- 1986 to 24.1 percent at the end of 1993. Together, ous change for the U.S. commercial banking industry. bank failures and mergers caused the number of First, two major banking laws, the Depository Institu- chartered U.S. commercial banks to decline almost tions Deregulation and Monetary Control Act of 1980 one-fourth during the 1987-93 period, from 14,210 and the Garn-St Germain Depository Institutions Act to 10,960. During the same period, however, bankof 1982, removed numerous regulations that limited ing industry assets grew from $2.94 billion to competition among banks and between banks and $3.71 billion. nonbanks. For example, interest rate ceilings were The 1987-93 period also saw record numbers of phased out, and many restrictions on how much failures by nonbank competitors, primarily savings banks and thrift institutions could invest in particular and loan associations and savings banks; because of asset classes were eased. Additional legislation at the failures and mergers, these institutions declined by state level eased or removed many limitations on almost half during the period, from 3,677 to 2,262. geographic expansion by banks.8 Subsequently, a Unlike banking assets, which rose over this period of sequence of economic shocks in the 1980s from the consolidation, the assets of savings and loans and collapse of agricultural, oil, and commercial real savings banks fell, from $1.39 trillion to $1.0 trillion. estate prices contributed to losses that caused banks Contributing to this divergent experience was the to fail in numbers not seen since the Great Depresacquisition of the savings institutions' assets by comsion, even though the economy was in an expansion mercial banks. that lasted from 1982 to 1990. More than 100 banks Largely in response to the record numbers of failed in each year from 1985 to 1992, and more than depository failures and the urging of bank and 200 failed each year in 1987, 1988, and 1989. Prethrift regulators, the Congress passed two more sumably, these failures tended to eliminate lessmajor banking laws, the Financial Institutions efficient banks, whose assets were transferred to Reform, Recovery, and Enforcement Act of 1989 more-efficient competitors, thereby leaving a banking (FIRREA) and the Federal Deposit Insurance Corpoindustry better equipped to compete with nonbanks.9 ration Improvement Act of 1991 (FDICIA). Together, FIRREA and FDICIA ushered in regulations regard- 7. See Cole and Wolken, "Financial Services Used by Small ing risk-based capital and prompt corrective action Businesses." that effectively increased capital requirements for 8. For a description of the changes in state laws, see Dean Amel, large portions of the banking and thrift industries. "State Laws Affecting the Geographic Expansion of Commercial Banks," Board of Governors of the Federal Reserve System, Sep- At the same time, the overall weakness of ecotember 1993; and Donald T. Savage, "Interstate Banking: A Status nomic activity left many businesses unwilling to take Report," Federal Reserve Bulletin, vol. 79 (December 1993), on new debt and, in many cases, unable to service pp.1075-89. 9. A number of studies have found that failing banks are much less their existing debt. Their plight contributed to record efficient than other banks. See Allen N. Berger and David B. loan losses in the banking industry. Especially hard Humphrey, "Measurement and Efficiency Issues in Commercial Bankhit was the market for commercial mortgages, where ing," in Z. Griliches, ed., Output Measurement in the Service Sectors, National Bureau of Economic Research, Studies in Income and prices, as measured by the Russell NCREIF Property Wealth, vol. 56 (University of Chicago Press, 1992), pp. 221-49; Index, dropped almost one-third during the 1990-92 Richard Barr and Thomas Siems, Predicting Bank Failure Using DEA period. to Quantify Management Quality, Federal Reserve Bank of Dallas, Financial Industry Studies Working Paper 1-94, January 1994; Robert The brief recession of 1990-91 included a slowing DeYoung and Gary Whalen, "Is a Consolidated Banking Industry a of credit flows that numerous economic observers More Efficient Banking Industry?" Office of the Comptroller of the Currency, Quarterly Journal, vol. 13 (September 1994), pp. 11-21; characterized as a "credit crunch." Whether the more and David C. Wheelock and Paul W. Wilson, "Explaining Bank stringent banking regulations and the supply of bank Failures: Deposit Insurance, Regulation, and Efficiency," Review of Economics and Statistics, vol. 77 (November 1995), pp. 689-700. credit played a role in bringing about these conditions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 Federal Reserve Bulletin • November 1996 1. Bank and nonbank shares of total nonfarm nonfinancial In this article, market shares rather than aggregate business loans, 1980-96:Q2 dollar amounts are compared. If all types of lenders and borrowers react to the business cycle in a similar Percent fashion, then these comparisons should be valid. If, however, during a recession, banks reduce lending more than nonbank lenders, some of the observed — 65 changes in market shares would be a result of — 60 these differing responses. But banks' share declined throughout the 1987-90 period (chart 1) and increased during the latter stages of the 1990-91 recession. Hence, the overall decline in banks' dollar share of small business lending should not be attributed to differing responses to the recession. 1980 1982 1984 1986 1988 1990 1992 1994 1996 TYPES OF CREDIT USED BY SMALL BUSINESSES NOTE. Total nonfarm nonfinancial business loans are calculated as the sum of "bank loans" and "other loans and advances" at nonfarm nonfinancial corpora- Both of the NSSBFs collected information on six tions and nonfarm noncorporate businesses, as defined by the Federal Reserve Board's flow of funds accounts. Data are quarterly. Shaded areas denote periods types of credit to small businesses—credit lines used, of business recession as defined by the National Bureau of Economic Research. mortgage loans, equipment loans, motor vehicle loans, capital leases, and "other" loans.11 Credit lines has been the subject of much debate and is beyond used represent loans taken down under an agreement the scope of this article.10 However, harsher eco- by a lender to provide up to a specified amount of nomic conditions undoubtedly had adverse effects on credit for part or all of a specified period. Because the the use of credit for small businesses, especially the borrower has the option of taking down part or all of use of mortgage credit. Consequently, any compari- the credit for part or all of the specified period, credit sons of credit use in 1987, a year far along into a lines provide the most flexibility in funding. Credit seven-year expansion, with credit use in 1993, a lines are typically used to finance working capital year early in the current expansion, will undoubtedly needs and are often collateralized by assets unrelated be affected by differences in macroeconomic to the use of the credit line. In contrast, mortgage conditions. loans, equipment loans, motor vehicle loans, and The combination of loan losses, the weak econ- capital leases are typically used to finance specific omy, and more stringent regulation led many deposi- assets and are typically collateralized by the assets tories initially to tighten the terms and standards for being financed. "Other" loans refer to loans not underwriting commercial loans and strengthen their elsewhere classified, primarily unsecured term loans capital positions. A Board survey of senior loan and loans collateralized by assets other than real officers indicated that standards for approving com- estate, equipment, and motor vehicles and not taken mercial loans tightened, on net, throughout 1990-92 down under credit lines.12 and only began to ease during 1993. And bank Call From 1987 to 1993, the distribution of the total Report data show that the average leverage capital dollar value of credit used by small businesses across ratio for the industry rose from 6.2 percent in 1990 to loan types changed significantly (table 1). In both 7.6 percent in 1993. years, about three-fifths of the aggregate dollar amount of small business credit was in the form of credit lines used and mortgages; but in 1993, the 10. Joe Peek and Eric Rosengren link regulatory enforcement actions and the shrinkage of bank loans to sectors likely to be bank dependent ("Bank Regulation and the Credit Crunch," Journal of Banking and Finance, vol. 19, 1995, pp. 679-92), and tie changes in bank capital to changes in deposits ("The Capital Crunch: Neither a 11. Both surveys collected information about trade credit, and the Borrower nor a Lender Be," Journal of Money, Credit, and Banking, 1993 survey also collected information about credit card debt used for vol. 27, August 1995, pp. 625-38). In contrast, Allen N. Berger and business purposes; these two types of credit are not analyzed in this Gregory S. Udell conclude that the quantitative effects of the new article. capital regulations were not substantial ("Did Risk-Based Capital 12. Other loans refer to loans that a survey respondent reported Allocate Bank Credit and Cause a Credit Crunch in the U.S.?" after being queried about any credit lines, mortgages, equipment Journal of Money, Credit, and Banking, vol. 26, August 1994, loans, motor vehicle loans, and capital leases. Some of the loans pp. 585-628). However, they do not rule out regulatory pressure as a classified as "other" likely should be in another category, but the reason for some of the banking industry's credit reallocation during surveys did not collect sufficient information to permit accurate the early 1990s. reclassifications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank and Nonbank Competition for Small Business Credit 987 1. Distribution of the dollar amount of small business credit 2. Comparison of the distributions of the dollar amount of outstanding, by credit type, 1987 and 1993 small business credit outstanding at banks and nonbanks, Percent except as noted by credit type, 1987 and 1993 Percent except as noted Change Credit type 1987 1993 (percentage points) Banks Nonbanks1 C M r o e r d t i g t a l g in e e l s o u a s n e s d 2 1 3 3 4 1 . . 0 2 4 1 4 3 . . 1 9 -1 1 7 0 . . 3 1 * * CCrreeddiitt ttyyppee 1987 1993 ( C pe h a r a g c n e e g n e t- 1987 1993 ( C pe h a r a g c n e e g n e t- Equipment loans 10.5 11.3 .8 points) points) Motor vehicle loans 6.1 6.0 -.1 Capital leases 4.0 6.2 2.2* Other loans3 14.3 18.6 4.4* Credit lines used 2 ... 41.9 55.2 13.3 20.3 26.4 6.1 Mortgage loans3 31.0 14.4 -13.4 31.4 13.2 -18.2 Total 100 100 Equipment loans 10.0 11.0 1.0 11.4 11.7 .3 Motor vehicle loans .. 5.1 4.9 -.2 7.9 7.7 -.2 1. Amounts drawn down under credit lines. Capital leases 1.5 2.8 1.3 8.4 11.6 3.2 Other loans4 10.6 11.7 1.1 20.6 29.5 8.9 2. Includes both commercial mortgages and residential mortgages if funds were used for business purposes. Total 100 100 100 100 3. For definition, see text note 12. •Statistically significant at the 95 percent confidence level (that is, the 1. Nonbanks consist of thrift institutions (savings and loan associations, probability that any change occurred with the same sign is at least 95 percent). savings banks, and credit unions), finance companies, insurance companies, See the appendix for a discussion of some of the statistical techniques used. mortgage companies, leasing companies, brokerage firms, other business firms, families and individuals, and government sources of credit. 2. Amounts drawn down under credit lines. share for mortgages had plummeted from 31.2 per- 3. Includes both commercial mortgages and residential mortgages if funds cent to only 13.9 percent, while that for credit lines were used for business purposes. 4. For definition, see text note 12. used had risen from 34.0 percent to 44.1 percent. Much of this shift may be attributed to upheavals in gages only slightly, while shifting portfolio share the commercial real estate market, in which, as noted from equipment, motor vehicle, and other loans into previously, property values declined almost one-third credit lines used. As a result of these changes, in during the early 1990s. To the extent that these prop- 1993 credit lines used accounted for more than half erties were leveraged, borrowers passed losses on to of all finance company lending to small businesses. mortgage lenders, who responded by curtailing new Nonbanks other than thrift institutions and finance real estate lending. With the exception of motor companies were the only group of lenders whose vehicle loans, other types of credit (equipment loans, portfolio share of credit lines used declined from capital leases, and other loans) registered small gains 1987 to 1993. Other nonbanks shifted out of mortin market share from 1987 to 1993 at the expense of gages primarily into other loans. mortgages. These results are consistent with the 1996 survey conducted for the American Banker, which showed that small businesses have increased their BANK AND NONBANK SHARES reliance on credit lines and leases at the expense of traditional loans.13 OF SMALL BUSINESS CREDIT The same overall trends in the types of credit used From 1987 to 1993, banks lost to nonbanks 2 percentby small businesses are also evident in the shares of age points of their share of the small business credit different credit types held by banks and nonbanks, in market (table 4). This finding is consistent with the that credit lines used grew in importance while morthypothesis that nonbanks are eroding banks' market gages declined in importance (table 2). However, the share of credit to firms that are too small to gain proportions of credit types in the portfolios of banks direct access to money and capital markets. The and nonbanks are quite different. In 1993, for exammagnitude of the decline is small, however (banks ple, credit lines used accounted for more than half of still had three-fifths of the market in 1993) and lacks all bank credit extended to small businesses but only statistical significance.14 Moreover, bank lending to slightly more than one-fourth of all nonbank credit to businesses has rebounded strongly since 1993. Evismall businesses. dence from bank Call Reports shows that, after Among nonbanks, thrift institutions shifted their declining from $633 billion as of June 1991 to portfolio out of mortgages and into each of the five $593 billion as of June 1993, commercial and indusother types of credit, more than doubling their allocatrial loans grew to $737 billion as of June 1996. This tion to equipment and motor vehicle loans (table 3). growth in overall business lending suggests that Finance companies reduced their allocation to mort- 14. The estimated 2 percent decline in the bank share is signifi- 13. See "Credit Lines, Leasing in Demand." cantly different from zero at the 74 percent level of confidence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 Federal Reserve Bulletin • November 1996 3. Distribution of the dollar amount of small business credit at nonbank sources, by type of credit, 1987 and 1993 Percent except as noted Thrift institution Finance company Other nonbank1 Credit type Change Change Change 1987 1993 (percentage 1987 1993 (percentage 1987 1993 (percentage points) points) points) Credit lines used2 16.8 22.4 5.6 32.3 51.2 18.9 14.2 8.9 -5.3 Mortgage loans3 60.9 39.3 -21.6 7.5 6.3 -1.2 34.4 13.0 -21.4 Equipment loans 1.6 6.1 4.5 22.5 16.7 -5.8 8.5 9.1 .6 Motor vehicle loans 3.1 7.4 4.3 20.0 14.5 -5.5 2.1 2.7 .6 Capital leases 3.8 5.9 2.1 5.4 7.4 2.0 12.1 15.8 3.7 Other loans4 13.7 18.8 5.1 12.2 3.9 -8.3 28.7 50.5 21.8 Total 100 100 100 100 100 100 1. Other nonbanks consist of brokerage firms, leasing companies, insurance 3. Includes both commercial mortgages and residential mortgages if funds and mortgage companies, other business firms, government sources, and were used for business purposes. individuals. 4. For definition, see text note 12. 2. Amounts drawn down under credit lines. banks may have regained market share in the small business credit, while nonbank capital leases grew business credit market since the 1993 NSSBF. from 3.1 percent to 4.5 percent. Changes in bank and nonbank shares of the total To see how these changes in market shares affected dollar amount of small business credit from 1987 to specific types of nonbanks, credit shares of each type 1993 varied by type of credit (table 4). Mortgage of nonbank are shown in table 5. As the thrift indusloans' share of small business credit declined more try declined over 1987-93, thrift institutions' share of than half at both banks and nonbanks, with bank small business credit fell from 7.4 percent to 4.0 permortgages falling from 19.7 percent to 8.8 percent of cent. When combined with commercial banks' the small business credit market and nonbank mort- decline of 2.0 percentage points, depository institugages falling from 11.5 percent to 5.1 percent. The tions (commercial banks and thrift institutions) lost changes for credit lines, however, were quite different 5.4 percentage points of market share to nondeposiat banks and nonbanks. Bank credit lines grew by just tory nonbanks. Finance companies reaped the greatmore than one-fourth to 33.8 percent, while nonbank est gain in market share, with an increase from credit lines grew by more than one-third to 10.2 per- 11.4 percent to 14.7 percent. Leasing companies cent. These figures suggest that nonbanks increased more than doubled their market share from 1.5 pertheir share of the market for small business credit cent to 3.5 percent, while brokerage companies lines used over the same period that credit lines were increased their share from an almost nonexistent growing in importance to small businesses. In another 0.1 percent to 1.4 percent.15 Insurance and mortgage development, capital leases grew in importance for both banks and nonbanks. Bank capital leases almost 15. Brokerage company credit consists primarily of lines of credit doubled from 0.9 percent to 1.7 percent of all small used. 4. Distribution of the dollar amount of all small business credit outstanding, by type of credit at banks and nonbanks, 1987 and 1993 Percent except as noted Bank Nonbank Total Credit type Change Change 1987 1993 (percentage 1987 1993 (percentage 1987 1993 points) points) Credit lines used1 26.5 33.8 7.3* 7.5 10.2 2.7 34.0 44.1 Mortgage loans2 19.7 8.8 -10.8* 11.5 5.1 -6.4* 31.2 13.9 Equipment loans 6.3 6.8 .5 4.2 4.5 .3 10.5 11.3 Motor vehicle loans 3.2 3.0 -.2 2.9 3.0 .1 6.1 6.0 Capital leases .9 1.7 .8* 3.1 4.5 1.4* 4.0 6.2 Other loans3 6.7 7.2 .5 7.6 11.4 3.8* 14.3 18.6 All 63 3 61.3 -2.0 36.7 38.7 +2.0 100 100 1. Amounts drawn down under credit lines. * Statistically significant at the 95 percent confidence level. 2. Includes both commercial mortgages and residential mortgages if funds ** Statistically significant at the 90 percent confidence level. See the were used for business purposes. appendix. 3. For definition, see text note 12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank and Nonbank Competition for Small Business Credit 989 5. Distribution of the dollar amount of all small business credit outstanding, by type of credit and type of nonbank, 1987 and 1993 Percent Insurance Thrift Finance Brokerage Leasing Business and and mortgage Individuals Total institution company company company government Credit type companies 1987 1993 1987 1993 1987 1993 1987 1993 1987 1993 1987 1993 1987 1993 1987 1993 Credit lines used1 1.2 .9 3.7 7.5 .1 .7 .0 .0 .0 .1 2.4 .4 .0 .6 7.5 10.2 Mortgage loans2 4.5 1.6 .9 .9 .0 .3 .0 .0 .9 .9 1.5 .5 3.7 .9 11.5 5.1 Equipment loans .1 .2 2.6 2.5 .0 .0 .1 .6 .1 .1 1.0 .9 .4 .2 4.2 4.5 Motor vehicle loans .. .2 .3 2.3 2.1 .0 .0 .1 .3 .0 .0 .3 .1 .0 .1 2.9 3.0 Capital leases .3 .2 .6 1.1 .0 .0 1.2 2.5 .0 .0 m .8 .3 .2 .4 3.1 4.5 Other loans3 1.0 .8 1.4 .6 .0 .4 .0 .0 .4 .8 1.7 4.1 3.0 4.7 7.6 11.4 Total 7.4 4.0 11.4 14.7 .1 1.4 1.5 3.5 1.4 1.9 7.6 6.3 7 3 6.8 36.7 38.7 NOTE. Components may not sum to totals because of rounding. 3. For definition, see text note 12. 1. Amounts drawn down under lines of credit. 2. Includes both commercial mortgages and residential mortgages if funds were used for business purposes. companies saw a modest gain, whereas the shares of Changes in market shares of the total dollar amount credit extended by other business firms and govern- of each credit type also were evident among different ment and by individuals dropped. types of nonbanks (table 7). Thrift institutions lost A slightly different perspective on the relative almost half of their shares of credit lines used, capital importance of bank and nonbank lending is gained leases, and other loans, but doubled their share of by looking at changes in their shares of the total equipment loans and made sizable gains in their share outstanding dollar amount of each credit type of motor vehicle loans. Finance companies made (table 6).16 Banks suffered losses in the market shares strong gains in the market for credit lines, increasing of credit lines used, motor vehicle loans, and other their share 6.3 percentage points from 10.8 percent to loans, while gaining share in the markets for capital 17.1 percent. Finance companies also more than leases and, to a lesser extent, for mortgages. doubled their presence in the small business market for mortgage credit. This increase should be kept in perspective, however, as the mortgage share of all small business credit declined more than half over 16. The data in tables 4 and 5 are used to calculate bank and this period (table 1). Other nonbanks registered large nonbank market shares of the total outstanding dollar amount of each gains in the market for other loans, with individuals credit type. Each credit type's bank and nonbank share of total credit and other businesses and government being the priis divided by the sum of bank and nonbank shares. For example, in 1987 bank credit lines accounted for 26.5 percent of all small business mary sources for these loans. credit, and nonbank credit lines accounted for an additional 7.5 per- A comparison of the bank and nonbank shares of cent, for a total of 34.0 percent. Banks' share of the market for small business credit lines is then calculated as 26.5 percent divided by the aggregate amount of credit used by small busi- 34.0 percent, which yields 77.9 percent as the bank share of the small nesses as categorized by various characteristics of the business market for credit lines. Repeating these calculations for each firms and their primary owners also shows changes loan type produces the figures in tables 6 and 7. (Figures in the tables may be slightly different because of rounding.) from 1987 to 1993 (table 8). Banks lost market share 6. Distribution of the dollar amount of each type of small business credit outstanding at banks and nonbanks, 1987 and 1993 Percent except as noted Banks Nonbanks Total CCrreeddiitt ttyyppee Change Change 1987 1993 (percentage 1987 1993 (percentage 1987 1993 points) points) Credit lines used1 78.0 76.8 -1.2 22.0 23.2 1.2 100 100 Mortgage loans2 63.1 63.4 .3 36.9 36.6 -.3 100 100 Equipment loans 60.0 60.0 .0 40.0 40.0 .0 100 100 Motor vehicle loans 52.5 50.0 -2.5 47.5 50.0 2.5 100 100 Capital leases 23.0 28.0 5.0 77.0 72.0 -5.0 100 100 Other loans3 46.9 38.6 -8.3 53.1 61.4 8.3 100 100 All 633 61.3 -2.0 36.7 38.7 2.0 100 100 1. Amounts drawn down under credit lines. 3. For definition, see text note 12. 2. Includes both commercial mortgages and residential mortgages if funds were used for business purposes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 Federal Reserve Bulletin • November 1996 primarily at medium-sized small businesses (firms what, but not completely, sheltered from competition. with 5-19 employees or between $100,000 and However, there are many different but interrelated $1 million in annual sales), which account for factors at work here, so that any definitive concluapproximately one-fourth of all small business credit sions require a more rigorous analysis that accounts (memo columns). Although banks' market share of for these relationships. credit used by women-owned firms increased from 50.1 to 54.5 percent, their market share of credit used by minority-owned firms fell 13.2 percentage points, INCIDENCE OF SMALL BUSINESS CREDIT from 66.4 to 53.2 percent. Banks gained market share in markets where com- This section analyzes the "incidence" of small busipetition among banks (as measured by the Herfindahl ness credit, which is defined as the percentage of concentration index) was low or high, but lost share firms using credit of a certain type or from a particuwhere competition among banks was classified as lar source. In contrast to the analysis of credit shares moderate (table 8).17 In high-concentration markets, in the previous section, the analysis of incidence is primarily small rural areas, local banks face little not dependent on the size of the credit and therefore competition from other banks or from nonbanks and, gives a clearer picture of what sources and types of therefore, would be expected to maintain their share. credit were used by the "typical" small business.18 In fact, banks gained market share in rural markets In 1993, 54.1 percent of small businesses used while losing share in urban markets. In medium- some form of credit, down from 60.1 percent in 1987 concentration markets, which tend to be smaller (table 9). This finding most likely reflects the differurban and larger rural areas, banks faced limited ent macroeconomic conditions of the two periods but competition from other banks and from nonbanks, may also reflect other factors, such as the effects of but nonetheless clearly lost market share to non- FIRREA, FDICIA, and the growing use of credit card banks. In low-concentration markets, primarily large debt to finance small businesses.19 As with the urban areas, banks compete vigorously both with other banks and with nonbanks and have gained 18. Direct comparisons of the number of firms using credit services market share. This suggests that nonbanks are more in 1987 and 1993 should not be made because of differences in the effective when competing with banks that are some- coverage of the two surveys. Both surveys obtained lists of businesses from Dun and Bradstreet, Inc., which expanded its coverage of small, retail, and business service firms in the years between the two surveys. Therefore, the 1993 survey is more broadly representative of such 17. The Herfindahl index is a measure of market concentration firms, and valid comparisons between the 1987 and 1993 surveys can calculated as the sum of the squares of each bank's market share, be made only after accounting for these differences in coverage (see which is defined in terms of total bank deposits. The index ranges the appendix). from zero (perfect competition) to one (perfect monopoly). In this 19. Because only the 1993 NSSBF collected data on the use of article, markets with indexes of less than 0.10 are considered competi- personal and business credit card debt for business purposes, changes tive; those with indexes of 0.10 to 0.18, moderately concentrated; and in the use of such debt cannot be analyzed. Nevertheless, use of credit those with indexes of more than 0.18, highly concentrated. These card debt for business was widespread in 1993, with 39.2 percent of categories correspond to those defined in the "Horizontal Merger firms reporting business use of personal credit card debt and 27.6 per- Guidelines," issued by the U.S. Department of Justice and the Federal cent of firms reporting use of business credit card debt. (See Cole and Trade Commission, April 2, 1992. Wolken, "Financial Services Used by Small Businesses.") 7. Distribution of the dollar amount of each type of small business credit outstanding, by type of nonbank, 1987 and 1993 Percent except as noted Thrift institutions Finance companies Other nonbanks1 MEMO: Nonbank total Credit type Change Change Change 1987 1993 (percentage 1987 1993 (percentage 1987 1993 (percentage 1987 1993 points) points) points) Credit lines used2 3.7 2.1 -1.6 10.8 17.1 6.3** 7.5 4.0 -3.5 22.0 23.2 Mortgage loans3 14.4 11.4 -3.0 2.8 6.6 3.8 19.8 18.6 -1.2 36.9 36.6 Equipment loans 1.1 2.2 1.1 24.4 21.8 -2.7 14.5 16.1 1.6 40.0 40.0 Motor vehicle loans 3.8 5.0 1.3 37.4 35.9 -1.5 6.3 9.1 2.8 47.5 50.0 Capital leases 7.1 3.8 -3.2 15.6 17.4 1.8 54.3 50.7 -3.6 77.0 72.0 Other loans4 7.1 4.1 -3.0 9.8 3.1 -6.7** 36.2 54.2 18.0* 53.1 61.4 All 7.4 4.0 -3.4* 11.4 14.7 33 17.9 19.9 2.0 36.7 38.7 1. Other nonbanks consist of leasing companies, brokerage firms, mortgage 4. See text note 12. and insurance companies, other business firms, government sources, and * Statistically significant at the 95 percent confidence level. individuals. ** Statistically significant at the 90 percent confidence level. See the 2. Amounts drawn down under credit lines. appendix. 3. Includes both commercial mortgages and residential mortgages if funds were used for business purposes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank and Nonbank Competition for Small Business Credit 991 8. Total dollar amount of small business credit outstanding, grouped by selected characteristics and distributed by type of issuer, 1987 and 1993 Percent except as noted MEMO: Credit for firm category as a Banks Nonbanks percentage of all small business credit CChhaarraacctteerriissttiiccss ooff ffiirrmm,, oowwnneerr,, Change Change Change aanndd mmaarrkkeett 1987 1993 (percentage 1987 1993 (percentage 1987 1993 (percentage points) points) points) CHARACTERISTIC OF FIRM Number of employees Fewer than 5 56.4 56.9 .5 43.6 43.1 -.5 18.6 17.8 5-9 54.7 50.9 -3.8 45.3 49.1 3.8 12.1 12.2 .1 10-19 67.8 54.7 -13.1 32.2 45.3 13.1 10.3 12.4 2.1 20-499 66.5 66.3 -.2 33.5 33.7 .2 59.0 57.6 -3.4 Annual sales (in thousands of 1993 dollars) 100 or less 50.2 49.5 -.7 49.8 50.5 .7 3.4 5.2 1.8 101-1,000 56.0 52.8 -3.2 44.0 47.2 3.2 28.4 26.0 -2.4 More than 1,000 67.0 65.4 -1.6 33.0 34.6 1.6 68.2 68.8 .6 Age (years) 5 or less 59.5 58.7 40.5 41.3 12.8 21.7 8.9 More than 5 63.8 62.1 -1.7 36.2 37.9 1.7 87.2 78.3 -8.9 RACE, ETHNICITY, AND SEX OF MAJORITY OWNER Nonwhite or Hispanic .. 66.4 53.2 -13.2 33.6 46.8 13.2 5.3 7.8 2.5 White Non-Hispanic ... 63.1 62.0 -1.1 36.9 38.0 1.1 94.7 92.2 -2.5 Female 50.1 54.5 4.4 49.9 45.5 -4.4 7.5 11.7 4.2 Male 64.4 62.2 -2.2 35.6 37.8 2.2 92.5 88.3 -4.2 MARKET CHARACTERISTIC Urbanization Urban 63.3 60.3 -3.0 36.7 39.7 3.0 79.0 82.4 3.4 Rural 63.3 66.2 2.9 36.7 33.8 -2.9 21.0 17.6 -3.4 Banking market concentration1 Low 67.6 70.1 2.5 32.4 29.9 -2.5 12.5 10.0 -2.5 Moderate 64.2 57.4 -6.8 35.8 42.6 6.8 38.7 42.9 4.2 High 61.4 63.1 1.6 38.6 36.9 -1.6 48.8 47.1 -1.7 All firms 63.3 61.3 -2.0 36.7 38.7 2.0 100 100 1. As measured by the Herfindahl index. Low = less than 0.10, moderate = 0.10-0.18, and high = more than 0.18. decline in the dollar share of small business borrow- declined for mortgages and other loans but rose for ing, the type of credit whose usage (incidence) credit lines, equipment loans, motor vehicle loans, declined the most is mortgage loans. In both years, and capital leases. In 1993, nonbanks equaled or the most widely used types of credit were credit lines exceeded banks in the percentage of small businesses and motor vehicle loans. to which they provided capital leases and other loans As they did in the case of market share, banks also and trailed only slightly in equipment and motor lost ground to nonbanks in overall credit incidence. vehicle loans. From 1987 to 1993, the percentage of small busi- To assess the relative importance of thrift institunesses using bank credit services declined from tions and finance companies among nonbanks, their 44.0 percent to 36.8 percent, while the percentage of results are tabulated against those of all other nonfirms using nonbank credit services was flat at bank sources (table 10). The percentage of small 32.2 percent (table 9). The percentage of small busi- businesses using thrift institutions for credit services nesses using bank credit services declined for each remained constant from 1987 to 1993, even though type of credit except credit lines and capital leases. thrift institutions lost more than half their share of the Banks were the most important supplier of credit dollar value of small business credit over the period. lines in both 1987 and 1993 and were used by one out This finding is consistent, however, with the shift of five small businesses to obtain credit lines—more by thrift institutions from providing mortgages than four times the incidence for nonbanks. The (-1.2 percentage points), which typically are large in percentage of small businesses using nonbank credit amount, to credit lines (+0.5 percentage points) and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 Federal Reserve Bulletin • November 1996 9. Percentage of small businesses using selected credit services from all sources and from banks and nonbanks, 1987 and 1993 All sources Bank Nonbank Credit type Change Change Change 1987 1993 (percentage 1987 1993 (percentage 1987 1993 (percentage points) points) points) Any credit 60.1 54.1 -6.1* 44.0 36.8 -7.2* 32.2 32.2 .0 Credit lines 21.4 24.0 2.6* 19.5 20.6 1.1 2.7 4.7 2.0* Mortgage loans1 15.5 5.8 -9.7* 9.9 3.9 -6.0* 6.2 2.2 -4.0* Equipment loans 12.8 13.9 1.1 7.9 7.5 -.4 5.7 7.4 1.7* Motor vehicle loans ... 24.4 24.1 -.3 14.0 13.1 -.9 11.9 12.7 .8 Capital leases 7.2 9.1 1.9* 1.7 1.7 .0 5.8 7.9 2.1* Other loans2 14.1 11.0 -3.1* 6.7 4.2 -2.4* 8.0 7.4 -.6 NOTE. Firms may have multiple credit accounts at multiple sources. 2. For definition, see text note 12. 1. Includes both commercial mortgages and residential mortgages if funds * Statistically significant at the 95 percent confidence level, were used for business purposes. motor vehicle loans (+0.6 percentage points), which SUMMARY are smaller. In fact, small businesses were more likely to use thrift institutions in 1993 for credit lines and This article analyzes data from the National Survey motor vehicle loans than for mortgages. of Small Business Finances for 1987 and for 1993 The percentage of small businesses using finance regarding bank and nonbank competition in the marcompanies for credit services declined slightly, from ket for small business credit. The results indicate that 12.0 percent to 11.6 percent. Smaller proportions of banks have lost market share but only slightly— firms used finance companies for mortgages, motor about 2 percentage points. Moreover, bank lending vehicle loans, and other loans, while larger propor- has strongly rebounded since 1993, suggesting that tions used them for credit lines, equipment loans, and this loss may have been reversed subsequent to the capital leases. period covered by the surveys. In 1993, 19.6 percent of small businesses used According to the survey results, banks provided other nonbanks (nonbanks other than thrift insti- more than 60 percent of the dollar volume of credit in tutions and finance companies) for credit services, both survey years, excluding trade credit and credit a level 1.2 percentage points higher than in 1987; card debt, and dominated in the provision of credit other nonbanks lost ground only in mortgage loans. lines. However, the percentage of firms obtaining Among other nonbanks, leasing companies (not credit from banks dropped significantly, from shown in table 10) made the most headway in serving 44.0 percent in 1987 to only 36.8 percent in 1993, small businesses. The percentage of small businesses while the percentage of firms obtaining credit from borrowing from other nonbanks increased from nonbanks was stable at about 32 percent. Nonbanks 4.3 percent in 1987 to 7.6 percent in 1993—a gain made significant gains in the percentage of small accounted for almost entirely by capital leases and businesses that used them to obtain credit lines, motor vehicle loans. equipment loans, and capital leases; however, banks 10. Percentage of small businesses using selected credit services at selected types of nonbanks, 1987 and 1993 Thrift institution Finance company Other nonbank1 Credit type Change Change Change 1987 1993 (percentage 1987 1993 (percentage 1987 1993 (percentage points) points) points) Any credit 6.1 6.1 .0 12.0 11.6 -.4 18.4 19.6 1.2 Credit lines 1.6 2.1 .5 .7 1.1 .4 .5 1.6 1.1 Mortgage loans2 2.2 1.0 -1.2 .5 .2 -.3 3.7 1.0 -2.7 Equipment loans .5 .6 .1 1.6 2.0 .4 3.6 5.0 1.4 Motor vehicle loans ,.. 1.8 2.4 .6 8.6 7.8 -.8 1.7 2.8 1.1 Capital leases .1 .2 .1 1.2 1.9 .7 4.8 6.3 1.5 Other loans3 1.1 .5 -.6 .4 .2 -.2 6.6 6.7 .1 NOTE. Firms may have multiple credit accounts at multiple sources. 2. Includes both commercial mortgages and residential mortgages if funds 1. Other nonbanks consist of leasing companies, brokerage firms, mortgage were used for business purposes, and insurance companies, other business firms, government sources, and 3. For definition, see text note 12. individuals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank and Nonbank Competition for Small Business Credit 993 made significant gains in the percentage of firms DMI frame includes firms that are outside the scope using them to obtain mortgages. of the surveys, interviewers first screened firms for Among nonbanks, the data indicate that thrift insti- eligibility, then in the full or "primary" interview tutions lost almost half their share of the small busi- surveyed eligible firms as well as the firms for which ness credit market over the 1987-93 period, falling eligibility could not be determined. from 7.4 percent to 4.0 percent of the dollar amount The sample selection for both surveys incorporated of credit. The losses of market share by banks and stratified random sampling with stratification by thrift institutions primarily accrued to finance compa- urbanization of location (that is, urban or rural), nies, leasing companies, and brokerage firms. number of employees, and census region. Large firms The results presented here must be viewed with were oversampled in both surveys. However, the two caution. Many of the factors we analyze are interre- sample designs differed from each other in significant lated, and definitive conclusions cannot be drawn ways.21 until more powerful statistical methods can be The 1987 NSSBF used twenty-four strata conbrought to bear upon this issue. Moreover, we do not structed as follows: two urbanization categories examine bank and nonbank competition in the provi- (urban or rural location), three size categories of sion of transaction account and financial management firms according to the number of employees (1-49, services—markets traditionally dominated by banks. 50-99, and 100 or more), and four Census regions. In These are important and promising areas for future 1987 the screening interview yielded an eligibility research. rate of 66 percent, and the primary interview yielded a 65.5 percent response rate. A set of analysis weights enabled researchers to account for sample design, eligibility, and differential response. APPENDIX: BACKGROUND, WEIGHTING ADJUSTMENTS, AND VARIANCE ESTIMATES The 1993 NSSBF sample design employed ninetyseven strata constructed from four partitions of the The 1987 and 1993 NSSBFs were conducted for sample frame—one main partition and three minority different purposes. The 1993 survey focused on the partitions of likely Asian-, Black-, and Hispanicavailability of credit to small and minority-owned owned firms respectively. The main partition was businesses, whereas the 1987 survey focused on the divided into ninety sampling strata defined by the two definition of banking markets. Consequently, respon- urbanization categories, five size categories of firms dents to each survey answered a different set of according to the number of employees (1-19, 20-49, questions, but all respondents provided a complete 50-99, 100-499, and unknown), and nine Census roster of their firms' finances, including information regions. Each of the three minority partitions was about the firms' credit lines, loans, and leases.20 divided by urbanization for a total of six minority Interviewers conducted each survey using a system strata. A ninety-seventh stratum was defined to known as computer-assisted telephone interviewing account for firms that were listed on the DMI file to enter the responses directly into a computerized with more than 500 employees and that had fewer survey database. Research Triangle Institute con- than 500 when surveyed. The best estimate of the ducted the 1987 survey, with the interviews from eligibility rate is 68.2 percent, and the overall September 1988 through September 1989. Price response rate was 59.5 percent.22 The computation of Waterhouse conducted the 1993 survey, with inter- the analysis weights for the 1993 survey is more views from March 1994 through February 1995. The complicated than that for the 1987 survey. For 1993, list from which the sample was drawn (the sampling DMI data were used to compute an adjustment for frame) for both surveys was the current (December eligibility and nonresponse. 1987 and November 1993) Dun and Bradstreet Market Identifier (DMI) file. This continually updated file combines records derived from the traditional Dun 21. For a detailed description of the 1987 survey, see Brenda G. and Bradstreet credit-rating program with records Cox, Gregory E. Elliehausen, and John D. Wolken, The National Survey of Small Business Finances: Final Methodology Report, RTI derived from business telephone listings. Because the Report RTI/4131-00F (Research Triangle Park, N.C.: Research Triangle Institute, 1989); and for the 1993 survey description, see Price Waterhouse, "The National Survey of Small Business Finances Meth- 20. The analysis excluded firms classified as real estate operators, odology Report," July 1996. lessors, subdividers, and developers, resulting in the exclusion of 22. For the 1993 survey, eligibility for a large proportion of the 66 firms from the 1987 survey and 101 firms from the 1993 survey. sample could not be determined. Thus, the eligibility rate was These firms were identified by their respective four-digit Standard estimated assuming different scenarios for the nonrespondents. The Industrial Classifications, 6512 (Real Estate Operators and Lessors) best estimate proportionately assigned ineligibility status to the and 6552 (Real Estate Subdividers and Developers). nonrespondents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 Federal Reserve Bulletin • November 1996 Besides "unit nonresponse"—eligible firms that Variance Estimates do not provide interviews—analysts must also account for "item nonresponse" that results when a To obtain estimates of the change in bank shares and respondent fails to provide answers to particular incidence shown in tables 1, 4, 6, 7, 8, 9, and 10, questions. Both unit and item nonresponse are impor- estimates of the sampling variance were calculated tant sources of uncertainty. To provide users of the for use in tests of statistical significance. Although NSSBF data with a complete working dataset, vari- the sampling variance accounts for the major source ous models were used to impute the missing values of error in a survey, other errors may arise at any from the available data.23 stage: for example, a respondent may misinterpret a question; an interviewer may miscode a response; an editor may misinterpret a response. Also, the imputa- Weighting Adjustments tion process itself may be a source of error because of the uncertainty associated with any estimation pro- Analysis weights were adjusted to facilitate proper cess. However, the dominant source of error, and the comparisons of 1987 and 1993 data. Although both easiest to quantify, is the sampling error.25 For the surveys used the DMI file as a sampling frame, the analysis reported here, sampling variances were types of businesses represented in the file changed computed with the replicate method of bootstrap significantly between surveys. These changes sampling.26 increased the DMI files' coverage of the smallest Sampling variance can be estimated using "replifirms by adding records for firms identified from cation methods" that sample from the actual responthird-party lists, such as telephone directories. To dents in a way that includes the important dimensions adjust for the superior coverage of the 1993 DMI file, of the original sample design.27 The bootstrap method the 1987 analysis weights were recalculated so that is one such technique that is feasible with the NSSBF. the distribution of firms by employment size in the Using the bootstrap method involves sampling with 1987 data is the same as that in the 1993 data.24 replacement—that is, after each selection, cases are The analysis in this article excluded a small num- replaced in the sampling pool so that they may be ber of firms from each survey because of reporting selected in a subsequent draw. This operation was errors. Each firm with a credit line used, loan, or performed 400 times, and a set of analysis weights capital lease accounting for more than 1 percent of was computed for each of these 400 replicates. In this the aggregate dollar amount of any credit category model, the sampling error of an estimate computed was identified. Credit amounts for these firms were from the full sample (for example, the proportion of then inspected for potential reporting errors that firms using credit) is estimated as the standard deviawould account for any discrepancies. This inspection tion computed using the 400 bootstrap estimates. identified thirteen firms from the 1987 survey and For the 1987 survey, the replicates were selected to eighteen firms from the 1993 survey whose data were preserve the original sampling strata. The analysis in error. These firms' records were dropped from the weights for the replicates were computed by adjustdatabase, and the weights of the remaining firms ing the original analysis weights so that the frequenwere recalculated so that the original frequency distri- cies estimated within sampling strata remained bution in each sampling strata was preserved. After constant. For the 1993 survey, some of the sampling these adjustments, the 1987 sample consisted of strata had too few respondents and thus were col- 3,145 respondents representing 3.2 million firms, and lapsed within employee size classes into "bootstrap the 1993 sample consisted of 5,237 respondents, representing 4.9 million firms. 25. For instance, researchers have shown that sampling error is large relative to imputation error in the 1992 Survey of Consumer Finances. (See Arthur B. Kennickell, Douglas A. McManus, and R. Louise Woodburn, "Weighting Design for the 1992 Survey of 23. The imputation was similar to that used for the Board's Survey Consumer Finances," Board of Governors of the Federal Reserve of Consumer Finances. For details, see Arthur B. Kennickell, "Impu- System, Division of Research and Statistics, 1996.) tation of the 1989 Survey of Consumer Finances: Stochastic Relax- 26. When sampling designs and desired estimators are complex, ation and Multiple Imputation," Proceedings of the Section on Survey replicative variance estimators such as the jackknife and the bootstrap Research Methods (American Statistical Association, 1991). are most appropriate. (See R.R. Sitter, "A Resampling Procedure for 24. Ideally, the weights should be adjusted using the precise differ- Complex Survey Data," Journal of the American Statistical Associaence in the coverage of the 1987 and 1993 DMI frames. This informa- tion, vol. 87 (September 1992), pp. 755-65.) tion was not available, however, so the 1993 sample estimate was used 27. See Jun Shao and Dongsheng Tu, The Jackknife and Bootstrap as a proxy. (Springer-Verlag, 1995). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank and Nonbank Competition for Small Business Credit 995 A.l. Distribution of the dollar amount of small business bootstrap replicate) were computed. Because the credit outstanding, by credit type, 1987 and 1993 bootstrap estimates represent the sampling distribu- Percent except as noted tion of the full-sample estimate, the variance of the Change bootstrap estimates is the estimate of the sampling CCrreeddiitt ttyyppee 1987 1993 (percentage variance of the full-sample estimate. For example, points) the incidence of the use of banks for any credit in Credit lines used1 34.0 44.1 10.1* 1993 is 36.8 percent (table 9, first line). The bootstrap (2.97) (1.40) (3.28) replicate estimates ranged from 34.9 percent to MMoorrttggaaggee llooaannss22 31.2 13.9 -17.3* (2.27) (.77) (2.40) 38.4 percent, with a median of 36.8 percent and a variance of 0.39. The same process was repeated for EEqquuiippmmeenntt llooaannss 10.5 11.3 .8 (1.28) (-54) (1.39) all share and incidence estimates for 1987 and for Motor vehicle loans 6.1 6.0 -.1 1993. (2.13) (.32) (2.15) To test the significance of the changes between CCaappiittaall lleeaasseess 4.0 6.2 2.2* 1987 and 1993, a z statistic was computed as follows. (.52) (.34) (.63) The full-sample estimate for 1987 was subtracted Other loans3 14.3 18.6 4.4* (1.68) (1.02) (1-96) from that for 1993 to estimate the difference of the share or incidence measure. The standard deviation Total 100 100 of this difference is the square root of the sum of the NOTE. Standard deviations shown in parentheses. 1. Amounts drawn down under credit lines. bootstrap variances of the 1987 and 1993 compo- 2. Includes both commercial mortgages and residential mortgages if funds nents. The z statistic is then computed as the estiwere used for business purposes. mated difference divided by its standard deviation. 3. For definition, see text note 12. * Statistically significant at the 95 percent confidence level. The z statistics have an approximate standard normal distribution, so that significance levels indicating whether these estimates are significantly different sampling strata." Analysis weights were then comfrom zero are easily computed.28 Table A.l shows the puted so that frequencies within the bootstrap samstandard deviations of the data reported in table 1. • pling strata remained constant. With the bootstrap replicates and the associated analysis weights developed, the computation of sampling variance is straightforward albeit intensive. 28. For an explanation of tests of significance with normal data, see Four hundred bootstrap estimates (one from each H. Blalock, Jr., Social Statistics (McGraw-Hill, 1972), pp. 93-105. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 Industrial Production and Capacity Utilization for September 1996 Released for publication October 17 At 127.1 percent of its 1987 average, total industrial production in September was 3.5 percent higher Industrial production increased 0.2 percent in than it was in September 1995. Utilization of indus- September after a gain of 0.4 percent in August; the trial capacity edged down 0.1 percentage point, to August rate is slightly smaller than previously 83.3 percent. Meanwhile, on a quarterly average reported. Manufacturing output also increased basis, growth in industrial production slowed from an 0.2 percent in September. The production of motor annual rate of 6.7 percent in the second quarter to vehicles and parts, however, fell back about 2 percent 4.4 percent in the third quarter, with the slowdown for the second straight month. Mining output slipped evident in most major market groups except nondura- 0.2 percent, while output at utilities rose 0.4 percent. ble consumer goods and durable goods materials. Industrial production indexes Twelve-month percent change Twelve-month percent change 5 + 0 5 Materials 10 10 Durable manufacturing Products 1990 1991 1992 1993 1994 1995 1996 1990 1991 1992 1993 1994 1995 1996 Capacity and industrial production Rationale, 1987 production = 100 Ratio scale, 1987 production =100 — Total industry 160 — Manufacturing 160 140 Capacity _ 140 120 120 100 - 100 Production 80 80 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 I I I I I L J I I I L J I I I L 1982 1984 1986 1988 1990 1992 1994 1996 1982 1984 . 1986 1988 1990 1992 1994 1996 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

997 Industrial production and capacity utilization, September 1996 Industrial production, index, 1987=100 Percentage change Category 1996 19961 Sept. 1995 to Juner July' Aug.r Sept. Juner Julyr Aug/ Sept. Sept. 1996 Total 126.4 126.4 126.8 127.1 .8 .0 .4 .2 3.5 Previous estimate 126.2 126.3 126.9 .6 .1 .5 Major market groups Products, total2 122.3 122.6 122.4 122.9 .8 .2 -.1 .4 2.9 Consumer goods 116.8 117.4 116.6 116.6 .4 .5 -.7 .1 .5 Business equipment 168.6 170.1 170.8 172.1 1.6 .9 .4 .8 8.8 Construction supplies 113.9 112.5 113.2 113.5 2.6 -1.3 .7 .2 4.6 Materials 132.6 132.3 133.7 133.7 .8 -.3 1.1 .0 4.3 Major industry groups Manufacturing 128.5 129.0 129.1 129.4 .9 .3 .1 .2 3.6 Durable 141.1 141.5 142.2 142.4 1.5 .3 .5 .1 5.9 Nondurable 114.6 115.1 114.6 115.1 .2 .4 -.4 .5 .7 Mining 102.8 101.4 103.8 103.6 2.3 -1.3 2.4 -.2 3.6 Utilities 126.6 123.1 125.2 125.7 -1.4 -2.7 1.7 .4 2.5 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1995 1996 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, SSSeeepppttt... 111999999555 11996677--9955 11998822 11998888--8899 tttooo Sept. Juner Julyr Aug.r Sept. P SSSeeepppttt... 111999999666 Total 82.1 71.8 84.9 83.7 83.7 83.4 83.4 83.3 3.9 Previous estimate 83.5 83.3 83.5 Manufacturing 81.4 70.0 85.2 82.8 82.6 82.5 82.3 82.2 4.4 Advanced processing 80.7 71.4 83.5 81.1 80.8 80.8 80.7 80.5 5.2 Primary processing . 82.6 66.8 89.0 86.9 86.8 86.6 86.3 86.2 2.5 Mining 87.4 80.6 86.5 89.3 91.9 90.7 92.9 92.7 -.1 Utilities 86.9 76.2 92.6 90.7 92.6 90.0 91.4 91.6 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. When analyzed by market group, the data show trated at producers of information processing equipthat the overall output of consumer goods was little ment. The output of industrial equipment was changed in September, as substantial declines in the unchanged, and production for this segment remains production of automotive products and other con- near its September 1995 level. Led by another large sumer durables were offset by advances in the pro- drop in motor vehicle assemblies, the production of duction of nondurable consumer goods. Motor vehi- transit equipment fell again in September. Growth at cle assemblies fell 0.5 million units (annual rate) commercial aircraft manufacturers continued strong, from their August level. The output of other durable however, with production up more than 14 percent consumer goods declined noticeably for the third since June. The output of defense and space equipconsecutive month, putting it more than 4 percent ment edged up in September after having posted below its June level and more than 1 percent below substantial increases in the two preceding months. its year-ago level; the weakness in September was The production of construction supplies, which had concentrated in household furniture, refrigerators, risen a revised 0.7 percent in August, increased and miscellaneous durable goods. In contrast to the 0.2 percent; the output of business supplies, however, lowered output of consumer durables in September, rebounded from the previous two months of weakthe production of consumer nondurables rose 0.5 per- ness, advancing 1.1 percent. cent, led by gains in the production of foods and The output of industrial materials was flat in Sepchemical products; electricity usage and the output of tember. With a return to more seasonal temperatures, clothing and paper products also increased, but gaso- the production of energy materials edged up 0.2 perline output fell. cent after having risen 2.4 percent in August. After The output of business equipment advanced strong growth in August, the output of durable goods 0.8 percent; as in August, the increase was concen- materials was unchanged, as gains in the output of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 Federal Reserve Bulletin • November 1996 parts destined for use in computer, aviation, and industrial use of electric power; the current target for defense equipment were offset by declines in parts publishing the revision is late November. The reviused primarily in consumer durables. The output of sions of IP, capacity, and capacity utilization will nondurable materials increased just 0.1 percent after incorporate updated source data for recent years and a 0.7 percent decline in August; declines in textile will feature a change in the method of aggregating materials and containers largely offset gains in paper, the indexes. From 1977 onward, the value-added chemical, and miscellaneous materials. proportions used to weight individual series will be When analyzed by industry group, the data show updated annually rather than quinquennially. In addithat after a revised 0.1 percent gain in August, factory tion, the IP indexes and the capacity measures will be output increased 0.2 percent in September; the pro- rebased so that 1992 actual output equals 100. Capacduction of durable goods edged up 0.1 percent, while ity utilization, the ratio of IP to capacity, will be that of nondurable goods grew 0.5 percent. Among recomputed on the basis of revised IP and capacity durables, the output of motor vehicles and parts and measures. of miscellaneous manufactures declined substantially; The aggregate IP indexes will be constructed with the production of lumber and of iron and steel also a superlative index formula similar to that introduced fell. These declines were more than offset, however, by the Bureau of Economic Analysis as the featured by substantial increases in computer and office equip- measure of real output in its January 1996 comprement, in aerospace and miscellaneous transportation hensive revision of the National Income and Product equipment, and in stone, clay, and glass products and Accounts. At present, the aggregate IP indexes are by small increases in other industries. Among non- computed as linked Laspeyres indexes, with the durables, the indexes for food, tobacco, paper, and weights updated every five years. Because of the chemicals all posted gains in excess of 0.5 percent; rapid fall in the relative price of computers and printing and publishing and petroleum refining also peripheral equipment, that periodic updating of advanced. On the negative side, the output of leather weights is too infrequent to provide reliable estimates products, textile mill products, and apparel products, of current changes in output, capacity, and capacity all of which had declined in August, fell again. The utilization. With the publication of the revision, production of rubber and plastics products also value-added proportions will be updated annually, retreated. and the new index number formula will be applied to The factory operating rate edged down 0.1 percent- all aggregates of IP, capacity, and gross value of age point, to 82.2 percent. The rate for advanced- product. For the most part, relative price movements processing industries decreased 0.2 percentage point, among the 260 individual components of the IP index to 80.5 percent, and the rate for primary-processing are likely to have little visible effect on total IP. industries slipped 0.1 percentage point, to 86.2 per- However, the more frequent updating of the relative cent. Although the operating rate for primary proces- price of the output of the computer industry could sors remains 4 percentage points below the high rate lower overall IP growth in some years by as much as for the current expansion, achieved in December V2 percentage point; in other years, the updating of 1994, capacity utilization for these industries is weights will have virtually no effect. Because the 3.6 percentage points above its 1967-95 average. In new index number formula will slow capacity growth particular, the operating rates for primary metals, as well as IP growth, the effect of the reaggregation petroleum refining, fabricated metals products, and on overall capacity utilization should be small. rubber and plastics products are more than 5 percent- The regular updating of source data for IP will age points above their long-run averages. include the introduction of annual data from the 1994 This release and the history for all published Annual Survey of Manufactures and selected 1995 series are available on the Internet at Current Industrial Reports of the Bureau of the Cenhttp://www.bog.frb.fed.us, the Board of Governors sus. Available annual data on mining for 1994 and World Wide Web site. 1995 from the Department of the Interior will also be introduced. Revisions to the monthly indicators for each industry (physical product data, productionworker hours, or electric power usage) and revised 1996 REVISION ANNOUNCEMENT seasonal factors will be incorporated back to 1992. In addition, the benchmark index for semiconductor output will be revised back to 1977 to reflect a hedonic During the fourth quarter, the Federal Reserve will price index similar in concept to that used for the publish revisions of its measures of industrial procomputer industry. duction (IP), capacity, capacity utilization, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 999 The statistics on the industrial use of electric power More detail on the plans for this revision is availwill be revised back to 1972. These revisions stem able on the Internet at http://www.bog.frb.fed.us. from three basic sources. First, the new figures incor- Once the revision is published, the revised data will porate more complete reports received from utilities be available at that site and on diskettes from the for the past few years. Second, an updated panel of Board of Governors of the Federal Reserve System, reporters on cogeneration will be fully integrated into Publications Services, 202-452-3245. The revised our survey of electric power use. Third, the levels of data will also be available through the Economic the monthly electric power series for manufacturing Bulletin Board of the Department of Commerce; call industries will be benchmarked to indexes derived 202-482-1986. In addition to the data currently profrom data published in the Census Bureau's annual vided, the time series of implicit prices necessary for surveys and censuses of manufactures. These indexes a user to aggregate IP and capacity under the new will also be revised so that 1992 electric power usage methodology will be provided by the Industrial Outequals 100. put Section, 202-452-3151. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 Statements to the Congress Statement by Lawrence B. Lindsey, Member, Board ments are having on the banking organizations that of Governors of the Federal Reserve System, before are most affected and on the industry overall. Finally, the Committee on Banking and Financial Services, I shall consider some of the potential economic rami- U.S. House of Representatives, September 12, 1996 fications of the current levels of consumer debt. I am pleased to appear before this committee today to discuss trends in consumer lending; the Federal REASONS FOR HIGHER DEBT LEVELS Reserve Board's view of the likely causes of these developments; and their likely effect on the U.S. Economic developments in the United States have, in economy, banks, and consumers. recent years, been favorable to growth in both spend- As Chairman Leach noted in his letter of invita- ing and borrowing by the household sector and to tion, consumer delinquencies on nonmortgage debt strong growth in consumer lending by U.S. banks, have increased in recent periods, and bankruptcy making both supply and demand factors conducive to filings could well exceed 1 million in 1996. These consumer credit expansion. On the demand side, developments have begun to affect profit margins at rising levels of employment and income coupled with some financial institutions, and the Federal Reserve the dramatic increases in stock and bond prices, and has been closely monitoring these conditions and thus aggregate household wealth, have led to both a discussing their implications with individual banking greater ability and a greater willingness of consumers organizations and industry groups. In our view, given to spend. the generally strong financial condition of the institu- During this same time period, rates and fees on tions most affected by these developments and that of consumer financing products have been coming the U.S. banking system, these adverse trends do not down. For example, average credit card rates, which currently present a material threat either to individual stood at about 18'/4 percent in late 1991, declined to banking organizations or to the overall banking less than 15V2 percent by May of this year. At the system. same time, annual fees on credit cards were dropped We have also been carefully monitoring the effect by many institutions. In addition, declining residenof higher debt levels on the potential for sustained tial mortgage rates throughout most of this interval noninflationary growth in the U.S. economy. Although contributed to a significant reduction in monthly payhousehold debt levels are at or near record levels, we ments on such debts. The relatively low mortgage believe that the balance sheet of the household sector rates of the early 1990s precipitated a refinancing viewed in the aggregate is sound. Barring unexpected boom that allowed many consumers to reduce signifidevelopments in either consumer credit policies or cantly their monthly mortgage obligations and to pay the wealth or income position of households, we do down higher cost consumer debt. not believe that current debt levels pose a threat to In combination, these generally favorable develthe continuation of the present economic expansion. opments have given consumers the confidence and However, although balance sheets are sound overall, financial foundation to incur additional debt to the trends affecting different household groups have finance major purchases. The net effect is that we been uneven. As a result, we might expect, and are have increased our spending faster than we have seeing, increased caution on the part of lenders increased our income. Since the second quarter of regarding further extensions of credit. Lenders are, 1991, when the present expansion began, real per and should be, on heightened alert for potential signs capita disposable personal income has risen $1,264, of increased financial stress among households. while real per capita expenditures have gone up In my remarks, I would like to begin with an $1,389. Essentially, for every $1.00 our income has overview of the economic factors that are likely to gone up, we have spent $1.10. This extra spending have contributed to the rising levels of consumer has been particularly concentrated among big ticket debt. I shall then turn to the emerging—and still items, which economists call "durables." While real well-contained—consequences that these develop- spending per capita has risen about 8.5 percent over- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1001 all, real per capita spending on durables has risen the 300,000 mark and had exceeded 1 million in the more than three times as fast (27.3 percent). It is not previous twelve months for the first time in history. unusual for consumers to borrow to finance these On the basis of available information, it is hard to durable purchases. High rates of durable purchases refute the observation of Sam Gerdano, the head of and consumer confidence usually occur during busi- the institute, that "today's bankruptcy boom is the ness cycle expansions. So, much of the higher level natural result of three years of sustained consumer of consumer debt could be attributed to acquiring spending increases that far outpaced income growth additional assets, a normal development at this stage in an era of greater social acceptance of bankruptcy." of the business cycle. A recent survey of the causes of consumer bank- The growth in nonmortgage consumer debt has ruptcy by VISA indicated that being overextended been particularly robust in the past two to three years. was the most commonly cited reason. Interestingly, it As the economy emerged from recession in 1991, exceeded event-specific reasons such as medical growth in nonmortgage consumer debt was much emergencies, unemployment, and divorce. slower than typical, reflecting sluggish spending on While rising levels of consumer debt may be condurable goods and lingering fears about long-term tributing to the climb in bankruptcies, bankruptcy layoffs and other threats to job security. However, by law may also be contributing to rising debt levels. 1994 consumer confidence had recovered consider- Several factors are said to be contributing to higher ably, and demand for autos and other durable goods rates of personal bankruptcy, including greater social had strengthened. Nonmortgage consumer debt grew acceptability of the practice, changes in law that have about 15 percent that year and the next. Revolving made bankruptcy less onerous for individuals, and credit—primarily credit card debt—has been, by far, increased advertising by bankruptcy attorneys. To the the fastest-growing component of consumer debt, extent that bankruptcy is perceived by consumers as averaging annual increases of 20 percent over the an easier option, the demand for credit, and particupast two years. larly the willingness to take on high levels of credit, In part, the rapid rise in credit card debt is part of a is enhanced. With the consequences of bankruptcy long-standing trend. In 1977, when first reported reduced, individuals, other things equal, may be more separately to the Federal Reserve, revolving debt of willing to borrow than would otherwise be the case. U.S. consumers totaled $30 billion, or 14 percent of One may not wish to foreclose the possibility of all consumer debt. In July of this year, the amount renewed credit access to those who have been forced outstanding was $454 billion (preliminary), or nearly by uncontrollable circumstances to seek the protec- 40 percent of the total. Some surveys show that tion of bankruptcy, but it should be recognized that 80 percent of U.S. households now have at least one undue generosity on this score only encourages credit card. In addition, some of the increase in greater use of the bankruptcy remedy and consequent consumer debt is merely a reflection of the greater chargeoffs. prevalence of convenience use of credit cards as a In sum, a variety of macroeconomic and socioecosubstitute for cash or check payment. Convenience nomic factors have contributed to the rise in the users typically pay their card balances in full each demand for consumer credit. The lower cost of credit month. The increased convenience use of credit cards is certainly a factor. Higher income and wealth and has been reinforced in recent years by a variety of the consequent increase in consumer confidence have incentives, such as the availability of frequent flier increased the willingness to both spend and borrow. miles. But, the Federal Reserve's Survey of Con- A long-term trend toward greater willingness to use sumer Finances suggests that the convenience share household debt, particularly credit card debt, has also of outstanding credit card debt, defined as credit played a factor. The reduced consequences of perextended to people who always pay their credit card sonal bankruptcy may also have played a role. bills each month, has not risen markedly in recent Accompanying the increase in demand for conyears and still accounts only for roughly one dollar in sumer credit have been developments on the supply seven of aggregate credit card debt. side of the market. As a percentage of total bank The particularly rapid growth in the demand for loans, consumer debt (including mortgages) has been unsecured credit coupled with changes in both legal increasing steadily for some time—from 33 percent and social attitudes raises another potential, albeit of total bank loans in 1980 to roughly 40 percent five disturbing, factor affecting demand: the increased years ago and about 44 percent today. Credit card incidence of personal bankruptcy. Late last month, debt has been a particularly fast growing segment of the American Bankruptcy Institute reported that per- bank portfolios. Since late in 1991, credit card debt sonal bankruptcy filings in the second quarter neared has risen about twice as fast as total loans. If one adds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 Federal Reserve Bulletin • November 1996 back estimates of the outstanding securitized credit $1 billion in assets and with credit card balances card debt of banks, such credit has risen almost three comprising more than 50 percent of total assets). For times as fast as total loans at banks. various legal, tax, and operating reasons, most large The industry's total increase in credit card loans banking organizations find it convenient to establish has been supported by the aggressive marketing of such banks, separate from their other operations, as a some banks. Marketing campaigns typically involve vehicle for booking most, if not all, of their credit broad-based, regional, or nationwide solicitations and card loans. These roughly thirty entities most recently often include preapproved lines of credit based on the reported an average annualized return on assets for results of "credit scoring" models that statistically the second quarter of 2 percent, compared with a evaluate an individual's creditworthiness. Credit quarterly return of 1.3 percent for all insured comscoring and computer-based statistical evaluation mercial banks. While credit card banks remained have sharply lowered the cost of making a decision to more profitable than other banks, their profitability extend credit. This has greatly facilitated the mass has declined a good bit in recent years because of marketing of credit to individuals who are not bank heightened competition and the erosion of credit customers and who live outside banks' traditional quality. Credit card banks also maintain average service areas. equity to asset and loan-loss reserves to total loan In addition, banks' success in securitizing con- ratios well above industry averages. sumer debt instruments for resale in capital markets The strong earnings profiles of the credit card has increased both their willingness and their ability banks, and their associated capital and reserve allocato make such loans. Securitization and credit scoring tions, are reflections of the risks associated with this have necessitated heavy investments in the techno- form of lending. Higher risk and higher return go logical infrastructure needed to evaluate, originate, hand in hand, and the higher capital and reserves and effectively manage such credits. associated with this form of credit are required to In turn, this has changed the cost structure of the balance the risk. Put another way, lenders active in industry to favor an expansion of volume to exploit the credit card business are conscious of higher scale economies. Major competitors have increas- potential loss rates and expect returns that will fully ingly used special promotions offering reduced fees absorb these losses and still provide an adequate and rates to obtain market share and maximize the profit margin. They are also aware of the necessity to scale economies of their operations. Some have also take steps to ensure that the variance in returns on been willing to take on greater risk in the interest of these loans does not create significant solvency conincreasing loan volumes. Such competitive zeal all cerns for their organizations. too often attracts weak or otherwise marginal borrow- Generally speaking, delinquency rates on noners. The resultant adverse selection of credit risks has mortgage consumer loans have been trending up for contributed to a decline in asset quality at some the past year, with some of the increase in delinbanks. quency rates merely the result of the "seasoning" of While these problems have eroded returns at indi- recently underwritten loans, a typical pattern. Howvidual institutions, a critical factor that continues to ever, for credit cards, the widely followed statistics of contribute to the emphasis on such lending has been the American Bankers Association show that the the significant, overall long-term profitability of the number of delinquent accounts is historically high. credit card business. This is not irrelevant for a The more comprehensive figures from the official banking system whose largest institutions had been bank call reports based on the dollar volumes of loan under earnings pressure through much of the 1980s balances, however, show a much milder upturn in because of their exposures to developing countries, delinquencies—but still one warranting our attention. energy sector borrowers, and commercial real estate Recently, our supervisory activities, surveys of markets. Thus, both supply and demand factors help examiners, and discussions with bankers all have explain the increase in the levels of consumer debt supported the view that banks are recognizing weakthat we have recently experienced. nesses in the consumer lending market and are actively adjusting their underwriting and monitoring procedures for these loans. Some banks have also increased their levels of reserves for these loans in EFFECT ON THE BANKING SECTOR recent months. One indication of the profitability of credit card lend- Since March 1995, the Federal Reserve has also ing can be seen in analyzing the so-called credit card been conducting a quarterly survey of its most senior banks (defined to include banks with more than examiners to track their assessments of conditions in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 1003 the banking market, including their assessments of credit extensions. In this regard, they increase the any changes in lending terms and conditions for long-term health and viability of the economic expanconsumer loans. To supplement these surveys, regu- sion by ending potential economic excesses before lar discussions are conducted with bankers and super- they adversely affect the banking and credit delivery visory officials at the Reserve Banks to ascertain their system. opinions on current lending conditions. In the most Third, the development of computerized creditrecent Federal Reserve Senior Loan Officer Survey, scoring models offers the potential for more discernnearly half of the respondent banks, on net, had ing and carefully targeted reductions in the willingtightened underwriting standards for approving new ness to extend credit or adjustments in the terms on credit card applications, up from about a quarter in accounts. In this regard, a reduced willingness to lend the two previous surveys. More broadly, the propor- may be more narrowly focused than in the past. The tion of respondents less willing to make consumer adverse impact of a reduction in credit availability installment loans slightly exceeded the proportion might therefore be less in the present expansion than that was more willing to lend, for the first time since it has been in the past. 1991. Such a revisiting of current credit standards Still, the potential for a systematic and widespread and practices seems well considered, given the length pullback in credit access needs careful monitoring. of the current period of economic expansion and the Our first concern is that banks are engaging in safe signs of weakness in some elements of consumer and sound lending practices. As I mentioned earlier, finances such as rising delinquency and bankruptcy we believe that they are. Thus, any regulatory or rates. legislative mandate to reduce bank credit extensions to consumers is unnecessary. We also do not believe that the reduced willingness to extend credit at the POTENTIAL ECONOMIC RAMIFICATIONS current time is sufficiently widespread to create any significant macroeconomic risk to the expansion. Reduced Willingness To Lend The survey results on banks' willingness to lend to Excessive Debt Service Burdens finance consumer purchases raises a natural macroeconomic question. Could a pullback in bank willing- A second potential economic concern involves high ness to lend create potential difficulties for the susdebt-service burdens (that is, the amount a household tainability of the economic expansion? Figure 1 must pay each month to cover its debt obligations). provides some historical detail on this issue.1 As the At some point, one would imagine that the cost of figure indicates, there seems to be a degree of coinciservicing rising levels of debt would absorb such a dence between pullbacks in banks' willingness to large chunk of consumers' disposable income that lend and economic downturns. Nonetheless, it would they would have no choice but to reduce current be premature to expect that any current pullback in consumption. However, neither economic theory nor the willingness to lend to consumers would necessarempirical evidence provides any good indication of ily precipitate a recession. the level at which debt-service constraints begin to First, although the chart does indicate an apparent reduce spending. relationship, it is not at all clear that a cause-and- Figure 2 shows the level of estimated debt service effect relationship exists or in which direction any as a percentage of disposable personal income over economic causality might run. On theoretical the past thirty years. While high, the current level of grounds, one could argue either that a pullback in debt service payments is not out of the range of past credit leads to lower spending and thus to a recession experience. As conventionally measured, the level is or that recessions produce a deterioration in credit now 16.9 percent, up from a cyclical low of 15.3 perquality that causes banks to be less willing to make cent at the end of 1993 but below its peak of 17.6 perfurther extensions of credit. cent at the end of 1989. Second, as the data on delinquencies and bankrupt- A number of developments have taken place cies make clear, a good case can be made that reducrecently that have affected this measure. First, the tions in credit are appropriate responses to past excess level of mortgage debt service has fallen by a full percentage point of disposable personal income, from 6.8 percent at the end of 1989 to 5.8 percent cur- 1. The attachment to this statement is available from Publications rently. This has been partially offset by a higher level Services, Mail Stop 127, Board of Governors of the Federal Reserve of consumer installment debt. System, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1004 Federal Reserve Bulletin • November 1996 Second, the use of auto leasing has expanded rap- mate that, on average, the household sector increased idly in recent years, in part, acting as a substitute for its debt-to-income ratio about 5 percentage points taking out an installment loan to purchase an automo- between 1992 and 1995. This was the result of an bile. If one adjusts the measure of debt-service bur- increase of 2 percentage points in mortgage debt, den for leasing, our staff estimates that we would from 59.8 percent of income to 61.9 percent of now be about matching the previous peak in the income and an increase of 3 percentage points in debt-service burden. Since the previous peak at the nonmortgage consumer debt, from 16.9 percent of end of 1989, the effect of auto leasing has more than income to 19.8 percent of income. doubled, raising debt-service payments by more than Nevertheless, the survey data suggest some inter- 1 percent of income currently versus just 0.5 percent esting trends in the distribution of this debt. Typiof income in late 1989. cally, households earning more than $100,000 per year sharply reduced their debt levels between 1992 and 1995. The share of total household debt held by The Level and Distribution of Household Debt these households fell from one-third to one-quarter, and this decline was particularly concentrated among The balance sheet of the U.S. household sector, taken households earning more than $250,000 per year. as a whole, has improved substantially in recent These upper income groups experienced a decline in years. The dramatic increase in the stock market, for both the mean and median absolute level of debt example, has increased the financial assets of houseoutstanding, while all other income groups increased holds by $4.75 trillion since the end of the recession their debt. in 1991. Overall, household assets have increased by The decline in the debt levels for these groups $9.5 trillion, while household liabilities have risen makes the rise in debt levels for other groups more $1.5 trillion. This rise in aggregate household wealth striking. For example, households with incomes has doubtless supported the level of consumption between $50,000 and $100,000 increased their rates spending of recent years and allowed households to of aggregate mortgage debt to aggregate income by increase their consumption faster than their incomes about one-sixth and their corresponding consumer have risen. debt to income ratio by roughly 50 percent. From an economic point of view, nothing is wrong Of course, some households increased their debt with consumers increasing their debt per se. Increassubstantially more than this, and some not at all. The ing debt to finance long-term investments, such as Survey of Consumer Finances does indicate a strikhousing, durables, or even education, may be prudent ing increase in the willingness to go into debt in the depending on one's individual circumstances. Fur- $50,000 to $100,000 income group. The proportion thermore, taking on debt may be a prudent means of of survey households in this income group reporting maintaining consumption levels during a period when income is below one's expectations of its long-term credit card debt rose 13 percentage points, from trend. As I shall argue later, this may be one reason 51 percent in 1992 to 64 percent in 1995, compared for higher levels of consumer debt at present. with a 4-point increase, from 44 percent to 48 percent Suffice it to say that there are good reasons for any for the whole population. Those holding installment individual U.S. family to take on additional debt, and debt such as auto loans increased from 52 percent to it would be wrong for a Federal Reserve governor to 59 percent in this income group, while the proportion opine that some particular U.S. family is too much in in the overall population with this type of debt was debt. Individuals know their own circumstances far unchanged. Nearly 60 percent of the total increase in better than any government official. But a look at nonmortgage debt outstanding was assumed by disaggregated data provides insights into economic households in this income group. trends regarding the willingness of U.S. families to Debt increases for households earning less than add to their levels of debt. $50,000 were also sizable. The increasing attractive- Figure 3 combines information from the Federal ness of various types of financing tied to one's home Reserve's Survey of Consumer Finances (SCF) on produced a particularly large increase in the ratio of the distribution of household debt with our estimates mortgage debt to income. It should be noted that from the flow of funds accounts on the debt-to- although the mortgage debt to income ratio increased income ratio of the U.S. household sector.2 We esti- just 7 percentage points for households earning less than $25,000, compared with 10 percentage points to 11 percentage points for households earning $25,000 to $100,000, homeownership rates are much lower 2. The data are from 1992 to 1995 because these are the years in among this segment of the population. Adjusted for which SCF surveys were conducted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 1005 the lower level of homeownership rates among this earnings has been disappointing. Consumers might income group, mortgage debt to income ratios be choosing to cover what they perceive as a tempoincreased more for these lower income groups than rary reduction in their wages from their long-term for the $50,000 to $100,000 income group. I might trend through debt. During the three-year period disadd that the rapid expansion of mortgage financing cussed previously, the increase in wage and salary among low and moderate income groups is borne out payments has constituted a smaller share of increased by other data as well. We will not know for some gross domestic product than is usual during expantime what the overall effect of this lending will be on sions. During these three years, increased wage and default and delinquency rates. salary payments constituted only 44 percent of But these data also show that while some of the increased GDP, versus 47.2 percent during the added credit extension during this period is to people 1981-90 period. Stated differently, if wages and salain income groups that traditionally have not owed ries constituted the same share of GDP in 1995 as much debt, the bulk is not. While overall debt levels they did in 1990, workers would have enjoyed about increased for all groups earning less than $100,000, $52 billion more in income that year. the only group to increase its relative share of such Given that overall employment conditions are quite nonmortgage debt was the $50,000 to $100,000 good, workers might reasonably expect this shortfall income group. Thus, it is reasonable to conclude that to be temporary. An economically rational response the main reason for the household debt expansion of to this situation would be to borrow temporarily to recent years is not so much an extension of debt to maintain consumption levels with the expectation new households but an increase in the debt levels that the added debt would be repaid when wages rise taken on by fairly well-to-do segments of the popula- to more normal levels. This theory comports with tion to whom being in debt (albeit not at these levels) anecdotal concerns about corporate downsizings, is not an unusual experience. which also lend anecdotal support to the sharp debt From a macroeconomic perspective, we must rise in the $50,000 to $100,000 income group. An therefore consider why these middle and upper open question remains as to whether this wage shortmiddle income households have increased their debt fall is indeed temporary. The comparatively poor levels. Unfortunately, this is the type of question that performance of labor productivity in recent years is will only be definitively answered in hindsight. I not an encouraging sign. On the other hand, as Chairmentioned one likely explanation earlier. It is not man Greenspan has noted before this committee, at all unusual for these households to expand their there are reasons to expect that we may not be levels of durable purchases and debt to finance these measuring the impact of new technologies on our purchases. Consumer confidence is high and up from economy appropriately. levels earlier this decade, thus increasing demand. Thus, we cannot tell for certain what the dominant Thus, one possibility is that what we have experi- reasons for the debt increase might be. We cannot tell enced is a cyclical phenomenon linked to acquisi- how the habit of households increasing spending tion of consumer durables by relatively affluent faster than income will break: Will productivity households. increase to allow wages to constitute more normal A related possibility is that households may be portions of GDP, or will consumers ultimately be using their access to both mortgage and consumer forced to reduce their spending? Nor can we tell credit to finance purchases of financial assets. The when this current pattern will end. Consumers can expectation of high returns in the stock market may probably continue to maintain current spending pathave induced some households to borrow to finance terns by increasing their debt levels further for the these investments. Tax rules regarding both home foreseeable future. The prudence of continuing to do mortgages and pension plans such as 401(k)s, may so depends crucially on the household's individual have made such purchases of financial assets with situation. debt for which the interest is tax deductible particu- But at present the Board does not believe that larly attractive. Whatever the economic performance current debt-service levels are a necessary impediof such a financial arrangement, consumers are reduc- ment to continued economic expansion. We also see ing the liquidity of their balance sheets by such no reason to believe that this expansion of consumer actions. I might also add, however, that our most debt on the balance sheets of the Nation's banks is recent Survey of Consumer Finances found little any cause to worry about their underlying safety and evidence to support this explanation. soundness. Thus, the Federal Reserve believes that Yet another possibility, consistent with both the the best policy is to continue to monitor and study data and economic theory, is that consumers' long- developments in this area but that no immediate term confidence is high, but recent experience with regulatory or legislative action is warranted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1006 Federal Reserve Bulletin • November 1996 Statement by Susan M. Phillips, Member, Board many other physical commodities ranging from metof Governors of the Federal Reserve System, before als to oil. the Committee on Banking and Financial Services, Beyond that traditional financing, banks—and, US. House of Representatives, September 18, 1996 more importantly in this country, nonbank financial institutions—have also participated in agricultural Thank you for the opportunity to discuss the recent and other commodity markets through their trading trading losses by Sumitomo Corporation and their of commodity derivatives both on and off organized implications for U.S. banks and markets. These exchanges. Unlike the banks' more traditional funclosses, which relate to copper trading, may be as tions, their trading of commodity derivatives has large as $1.8 billion and once again highlight the increased in recent years, largely for the same reaimportance of sound internal controls by all parties sons trading activities, in general, have grown: with significant trading activities. At this time the expanded international trade, increased demand for losses appear to be limited to the Sumitomo trading hedging instruments and improved methods for mancompany, which has been meeting all of its obliga- aging and controlling risks, advances in computerizations to U.S. banks arising from its transactions in the tion and communications technology, and other copper market. factors. In my remarks today, I would like to address the Nevertheless, commodities trading at U.S. banks general nature of U.S. bank involvement in trading remains a very small component of their overand financing physical commodity transactions, the all activities. Ownership of actual, physical Federal Reserve's actions in the immediate aftermath commodities—an activity underlying much of the of the announcement of Sumitomo's losses, and the copper trading of Sumitomo—is generally limited for lessons we believe should be drawn from this and U.S. banks to gold, silver, and other precious metals. similar episodes. In doing so, I would emphasize at Even their trading of physical commodities contracts the outset that, as a nonfinancial company, the on organized exchanges or through privately negoti- Sumitomo Corporation is not regulated by the Fed- ated transactions is small, accounting for less than eral Reserve or by any other banking supervisory or 1.0 percent of all their derivatives positions. These regulatory agency in this country or abroad. Conse- contracts, in turn, are about evenly divided between quently, the Federal Reserve's involvement has (1) gold and other precious metals and (2) all other related principally to reviewing the exposure and role commodities. of U.S. banks that lent funds to Sumitomo or that As you may know, the Sumitomo Corporation has dealt with the company in its copper-related business been a major participant in the trading of copper and to assisting the Commodity Futures Trading derivatives for many years, largely through the activi- Commission (CFTC) in its evaluation of Sumitomo's ties of its chief copper trader, Yasuo Hamanaka. U.S. activities. Consequently, after indications of problems in the company's copper trading operations, copper prices fell sharply. Copper markets appear to have stabilized, and the Federal Reserve is not aware of any COMMODITIES TRADING AND FINANCING material spillover effects to other markets. ACTIVITIES OF U.S. BANKS U.S. banks have long been involved in financing commodity activities through their agriculture lend- FEDERAL RESERVE ACTIONS AFTER ing programs directed at the production and sale of SUMITOMO'S ANNOUNCEMENT agricultural products, both domestically and abroad. Indeed, more than one-quarter of all U.S. banks have Immediately after Sumitomo's announced loss, the farm loans in excess of 25 percent of their total loans. Federal Reserve took steps to determine the size and Such lending, however, has become less important nature of U.S. bank exposures to the trading company to our banking system as the relative importance of and to the copper market. Several banks had trading primary agricultural products in real gross domestic or financing transactions with Sumitomo relating product has declined. At midyear 1996, farm lending to its copper trading and were owed payments by accounted for roughly 2.7 percent of total lending by Sumitomo in connection with those transactions. U.S. commercial banks, compared with 5.2 percent in Shortly after the announcement, the banks contacted 1970. U.S. banks have also, of course, been active in Sumitomo to review and confirm all outstanding financing the production, distribution, and sale of transactions relating to copper, and Sumitomo has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 1007 been meeting all of its obligations as they come due. companies the only practical response—is to con- At this time, any losses appear to be limited to tinue to promote policies that foster greater market the Sumitomo trading company itself, but it should discipline. be noted that the company, regulators, and others Encouraging greater disclosure of risk levels is an are reviewing the events leading to the June effort that moves in that direction. Disclosures such announcement. as an organization's calculated "value-at-risk" have The Federal Reserve also sought to coordinate its the potential to provide investors and other market review of U.S. banks' copper-related activities with participants with greater information regarding the the CFTC, which was reviewing Sumitomo's con- organization's willingness to take risks and are curduct. To this end, shortly after the announcement of rently being discussed. Official and market pressures Sumitomo's loss, senior staff of the Federal Reserve to produce such statistics hopefully will continue to and the CFTC began meeting together to share infor- strengthen the internal auditing and information sysmation pertinent to their respective enquiries. This tems of many firms. By themselves, though, such effort is still ongoing. quantitative disclosures will not suffice if large exposures are mismeasured or overlooked. Shareholders, boards of directors, and senior managers must absorb IMPORTANCE OF SOUND MANAGEMENT the lesson that strong management and control proce- CONTROLS dures are essential. In the case of insured commercial banks, the Fed- This event highlights, yet again, the importance of a eral Reserve and the other U.S. federal banking agensound management process for controlling risks in cies have stressed the need for adequate management both banking and nonbanking organizations. As we processes in dealing with market conditions today have seen time and again in recent years, individual and have announced new supervisory procedures to traders today have the capacity to inflict tremendous reinforce the point. Through the Bank for Internalosses on their institutions when they are allowed to tional Settlements and other international organizaoperate in an environment lacking adequate operating tions, both the banking and securities regulatory comprocedures and controls. On the other hand, these munities have taken similar steps abroad. These incidents also illustrate the resilience of even special- regulatory efforts, combined with the lessons imposed ized commodities markets and the ability of world by the markets, should begin to drive home to market markets to absorb dramatic shocks. practitioners the importance of sound operating pro- It is instructional that the well-publicized losses cedures and controls. at Barings, Daiwa, Sumitomo, and others have all derived from violations of fundamental, managerial principles of control, such as those dealing with the CONCLUSION recording of all positions and the adequate separation of duties. Managements must build and maintain Although managing and controlling risks in a large adequate systems for controlling risks, whether they organization today can be a complicated, challengoperate bank or nonbank institutions. ing, and expensive task, the costs of not adequately Losses such as Sumitomo's raise the issue of more controlling risks can be much greater. One must extensive regulation. Regulation, however, simply conclude from recent events that some institutions cannot substitute for sound management. Earlier have yet to recognize that fact and take adequate episodes clearly demonstrate that the very same preventive measures. While financial risk-taking is problems can occur in regulated as well as unregu- essential to our economy, risks should be taken in an lated firms and with exchange-traded contracts as informed and intelligent manner and then only when well as with privately negotiated contracts. Thus, a adequately supported with owners' funds. • more appropriate response—indeed, for nonfinancial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1008 Announcements MEETING OF THE CONSUMER ADVISORY REGULATION B: REVISIONS TO THE OFFICIAL COUNCIL STAFF COMMENTARY The Federal Reserve Board's Consumer Advisory The Federal Reserve Board issued on September 27, Council met on October 24, 1996, in a meeting that 1996, revisions to its official staff commentary to was open to the public. The council's function is to Regulation B (Equal Credit Opportunity). The reviadvise the Board on the exercise of the Board's sions provide guidance on issues the Board has been responsibilities under the Consumer Credit Protec- asked to clarify, including credit scoring and spousal tion Act and on other matters on which the Board signature rules. Compliance became mandatory after seeks its advice. October 31, 1996. REGULATION M: REVISIONS AMENDMENT TO SECTION 20 OF THE GLASS-STEAGALL ACT The Federal Reserve Board issued on September 27, 1996, its final regulation to simplify and clarify The Federal Reserve Board announced on Septem- required disclosures for car leasing and other types of ber 11, 1996, that it would adopt a change in the consumer lease transactions. This new version of manner in which interest earned on certain securities Regulation M (Consumer Leasing) stems from the held by a company in an underwriting or dealing increased use of automobile leasing over the past capacity is treated in determining whether the com- several years and the Board's review of the regulapany is engaged principally in underwriting and deal- tion in accordance with its policy of periodically ing in securities for purposes of section 20 of the examining its regulations to carry out the purpose of Glass-Steagall Act. The amendment is effective the underlying law more effectively. November 12, 1996. The new regulation, which carries out provisions Section 20 of the Glass-Steagall Act prohibits a of the Consumer Leasing Act, is effective October 1, member bank from being affiliated with any company 1997, as set by the statute, but voluntary compliance "engaged principally" in underwriting and dealing in is acceptable at any time before that date. securities that a member bank may not underwrite or In general, the revisions to Regulation M accomdeal in (ineligible securities). To ensure compliance plish the following: with section 20, the Board requires that the revenue a bank holding company subsidiary derives from • Adopt a revised disclosure format, including the underwriting and dealing in ineligible securities segregation of certain disclosures not exceed 10 percent of the total revenue of the • Adopt a total of payments disclosure to facilitate company. comparisons The Board is amending its section 20 orders to • Revise the disclosure of costs paid at lease signspecify that interest earned on the types of debt ing to make it easier for a consumer to understand the securities that a member bank may hold for its own amounts to be paid and how they are allocated account shall not be treated as revenue from under- • Require a mathematical progression that shows writing or dealing in securities for purposes of sec- how the monthly lease payment is calculated and the tion 20. Interest on these securities will continue to relationship of terms such as the "capitalized cost" be included in total revenue. Section 20 subsidiaries and the "residual value" of the leased property may use this method to compute compliance with the • Require narrative warnings about possible revenue limitation in reports filed with the Board charges for terminating a lease early and for excess after the effective date. wear and tear Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1009 • Require changes in advertising rules to imple- Standard Time. It is the first time that the two regulament statutory amendments, simplify disclosure re- tors have collaborated on a consumer outreach effort quirements, and deter misleading advertising of this type and scope. • Require a disclosure to accompany any percent- "It's Your Money" is an hour-long seminar that age rate indicating the limitations of rate information. will cover the basics of saving and investing as well as explore smart ways to deal with today's markets. The Board will publish an updated proposal to the The purpose of the program, which is free of charge, commentary in mid-November 1996. The proposal is to encourage saving and to foster a greater underwill include material that was published for comment standing of investments. Topics will include the in September 1995 (60 FR 48769), and will incorpo- following: rate guidance contained in the section-by-section discussion that accompanies the final rule. The proposal • Budgeting to find money to save will also address substantive questions that may be • Using compounding to help your savings grow brought to the Board's attention regarding particular • Choosing banking services aspects of the final rule. Correspondence should be • Understanding risk submitted to the Director, Division of Consumer and • Setting goals Community Affairs, Washington, DC 20551, with a • Making investment choices. reference to Regulation M commentary, no later than October 28, 1996. The first half of the seminar will focus on saving; the second segment will be devoted to a presentation on how to invest wisely by SEC Chairman Arthur Levitt. A panel composed of the following experts REGULATION Z: AMENDMENT will field questions on both topics: The Federal Reserve Board announced on Septem- Alice Rivlin, Vice Chair of the Federal Reserve ber 16, 1996, the adoption of a final rule amending Board Regulation Z (Truth in Lending). This new rule was Kelvin Boston, author of Smart Money Moves for effective October 21, 1996. African Americans The revisions to Regulation Z incorporate changes Thomas Jones, Vice Chairman and President of made by the Truth in Lending Act Amendments of TIAA-CREF 1995. The amendments establish new creditor- Beth Kobliner, author of Get a Financial Life liability rules for closed-end loans secured by real Tyler Mathisen, Executive Editor of Money property or dwellings and consummated on or after magazine September 30, 1995. The amendments also clarify Grace Weinstein, author of The Lifetime Book of how lenders must disclose certain fees connected Money Management. with mortgage loans. Also, the Board is publishing a new rule regarding The moderator of this educational broadcast will the treatment of fees charged in connection with debt be Bob Ray Sanders, columnist for the Fort Worth cancellation agreements. The rule is similar to the Star-Telegram and the host of "Between the Lines," existing rule for credit insurance premiums and proa weekly news and public affairs program on KERAvides for more uniform treatment of these fees. TV, the PBS affiliate in Dallas-Fort Worth. "It's Your Money" is a unique opportunity for financial institutions, securities firms, certified finan- BROADCAST OF AN EDUCATIONAL PROGRAM cial planners, and other related industries and groups ON SAVING AND INVESTING to offer their clients and communities a program on saving and investing that allows their individual ques- The Federal Reserve Board and the U.S. Securities tions to be answered by a renowned panel of experts. and Exchange Commission (SEC) announced on Sep- The Federal Reserve Board and the SEC are tember 13, 1996, their co-sponsorship of an educa- pleased to have the support of the Alliance for Investional program for adults on saving and investing tor Education, which is a newly formed group of entitled "It's Your Money." investment industry organizations. The Alliance has This program will be broadcast nationwide by sat- been organized to facilitate a greater understanding ellite on Saturday, November 9, at 11 a.m. Central of investments, investing, and the financial markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1010 Federal Reserve Bulletin • November 1996 This program will be broadcast from Westcott seminar available to the subscribers of its satellite Communications in Dallas, Texas, and made avail- network in live format on Saturday, November 9, able to individuals and groups through Westcott's and in videotape format as a special program in Interactive Distance Training Network (IDTN) and December. its other affiliates throughout the country. In addition, If you would like to arrange the broadcast of this the program has been made available to the Commu- teleseminar in your community or to your customers, nity College Satellite Network, with more than 900 you can register by calling 1-800-805-9145 or by community college members. Members of the accessing the Federal Reserve Board's Internet site at National University Teleconference Network, a con- http://www.bog.frb.fed.us. For more information sortium of downlink facilities at colleges and univer- about the program, call Marci Schneider at sities, will also have access to this teleseminar. 202-452-3655. • American Financial Skylink, a subsidiary of the American Bankers Association, will make this tele- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1011 Minutes of the Federal Open Market Committee Meeting Held on August 20,1996 A meeting of the Federal Open Market Committee Mr. Connolly, First Vice President, Federal Reserve was held in the offices of the Board of Governors of Bank of Boston Mr. Beebe, Ms. Browne, Messrs. Davis, Dewald, the Federal Reserve System in Washington, D.C., on Eisenbeis, and Goodfriend, Senior Tuesday, August 20, 1996, at 9:00 a.m. Vice Presidents, Federal Reserve Banks of San Francisco, Boston, Kansas City, St. Louis, Present: Atlanta, and Richmond respectively Mr. Greenspan, Chairman Ms. Krieger, Vice President, Federal Reserve Bank Mr. McDonough, Vice Chairman of New York Mr. Boehne Mr. Sullivan, Assistant Vice President, Federal Mr. Jordan Reserve Bank of Chicago Mr. Kelley Mr. Bryan, Consultant, Federal Reserve Bank of Mr. Lindsey Cleveland Mr. McTeer Mr. Meyer By unanimous vote, the minutes of the meeting Ms. Phillips Ms. Rivlin of the Federal Open Market Committee held on Mr. Stern July 2-3, 1996, were approved. Ms. Yellen The Manager of the System Open Market Account reported on recent developments in foreign exchange Messrs. Broaddus, Guynn, Moskow, and Parry, Alternate Members of the Federal Open Market markets. There were no open market transactions in Committee foreign currencies for System account during the period since the meeting on July 2-3, 1996, and thus Messrs. Hoenig, Melzer, and Ms. Minehan, no vote was required of the Committee. Presidents of the Federal Reserve Banks of The Manager also reported on developments in Kansas City, St. Louis, and Boston respectively domestic financial markets and on System open mar- Mr. Kohn, Secretary and Economist ket transactions in U.S. government securities and Mr. Bernard, Deputy Secretary federal agency obligations during the period July 3, Mr. Coyne, Assistant Secretary 1996, through August 20, 1996. By unanimous vote, Mr. Gillum, Assistant Secretary the Committee ratified these transactions. Mr. Mattingly, General Counsel Mr. Prell, Economist The Committee then turned to a discussion of the economic and financial outlook and the implementa- Messrs. Lang, Lindsey, Mishkin, Promisel, tion of monetary policy over the intermeeting period Rolnick, Rosenblum, Siegman, Simpson, ahead. A summary of the economic and financial and Stockton, Associate Economists information available at the time of the meeting and Mr. Fisher, Manager, System Open Market Account of the Committee's discussion is provided below, followed by the domestic policy directive that was Mr. Ettin, Deputy Director, Division of Research approved by the Committee and issued to the Federal and Statistics, Board of Governors Reserve Bank of New York. The information reviewed at this meeting sug- Messrs. Madigan and Slifman, Associate Directors, Divisions of Monetary Affairs and Research and gested that the economic expansion had moderated Statistics respectively, Board of Governors somewhat recently. Growth in consumer spending Ms. Johnson, Assistant Director, Division of appeared to be slowing, business purchases of equip- International Finance, Board of Governors ment and structures were rising less vigorously, and Ms. Low, Open Market Secretariat Assistant, higher mortgage rates were beginning to exert a Division of Monetary Affairs, Board of restraining effect on housing construction. Business Governors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1012 Federal Reserve Bulletin • November 1996 inventory accumulation had been quite modest, and purchases of other types of equipment, notably comproduction and employment were expanding less rap- munications and industrial equipment, continued to idly. Increases in labor compensation had been some- advance briskly. Nonresidential construction activity what larger this year, but consumer price inflation, rebounded in June from an appreciable decrease in adjusted for food and energy prices, had remained on May. The pace of office building picked up, and a fairly steady trend. construction of other commercial and industrial struc- Private nonfarm payroll employment increased tures posted healthy gains after May declines. relatively rapidly in July, though at a considerably Business inventories increased by a modest amount slower pace than in the second quarter. Job growth in in June after having contracted in May. In manufacthe services industry slowed sharply, and manu- turing, inventories continued to run off in June, reducfacturing employment declined appreciably after hav- ing the sector's stock-sales ratio to near its historical ing risen somewhat in the second quarter. In contrast, low. Wholesale trade stocks also fell in June, and the the expansion in employment in wholesale and retail inventory-sales ratio was in the lower portion of its trade picked up slightly in July, and the number of range over recent years. Retail inventories rose in jobs in construction continued to increase at about the June; larger stocks at automotive dealers more than second-quarter pace. The average workweek for pri- accounted for the increase. The inventory-sales ratio vate production or nonsupervisory workers fell con- for the sector as a whole edged higher but remained siderably in July, to a level a little below its average at a relatively low level. for the second quarter, and the civilian unemploy- The nominal deficit on U.S. trade in goods and ment rate edged up to 5.4 percent. services narrowed in June, but on a quarterly average Industrial production rose slightly further in July basis the deficit widened in the second quarter from after three consecutive months of strong gains; manu- its rate in the first quarter. In June, the value of facturing production expanded less rapidly, and elec- exports declined slightly, but the value of imports tricity generation dropped sharply as a result of dropped by a considerably larger amount from a unseasonably cool weather. A substantial increase in relatively high rate in May. Available information the production of motor vehicles and parts accounted suggested that economic activity in the major foreign for most of the advance in manufacturing output. industrial countries continued to advance, but at an Elsewhere, the manufacture of office and computing uneven pace; in Germany, activity rebounded from equipment continued on its strong upward trend in the contraction in the first quarter, while in Japan a July while the production of other business equip- considerable slowing of growth had occurred in the ment slipped. The output of consumer goods edged second quarter after very rapid expansion in the first lower after having risen slightly in May and June. quarter. The rate of utilization of total industrial capacity Price inflation remained moderate on balance in declined a little in July but remained at a relatively June and July, with declines in energy prices essenhigh level. tially offsetting increases in food prices. Over a some- Retail sales weakened somewhat over June and what longer horizon, consumer prices for nonfood, July following several months of robust growth. Sales non-energy items rose slightly less in the twelve of motor vehicles were down in both months, and months ended in July than in the previous twelvespending on other goods rose sluggishly on balance. month period. Producer prices of finished goods other Housing starts fell somewhat further in July, reflect- than food and energy also increased more slowly in ing a sizable decline in single-family starts that more the twelve months ended in July. In contrast, growth than offset a bounceback in multifamily starts. The in labor costs had picked up. The employment cost drop in housing starts, coupled with lower sales of index for private industry workers advanced at a new and existing homes in June (latest data avail- somewhat faster rate in the second quarter than in the able), suggested that the rise in mortgage rates was first quarter or in the second half of 1995. Measured exerting a damping effect on housing demand and over the year ended in June, the index rose by a homebuilding activity. slightly larger amount than in the previous year. Growth in business spending on durable equipment At its meeting on July 2-3, 1996, the Committee and nonresidential structures had slowed after a very adopted a directive that called for maintaining the rapid expansion earlier in the year. Shipments of existing degree of pressure on reserve positions but nondefense capital goods were little changed in June that included a bias toward the possible firming of after a sizable increase in May. Weakness in outlays reserve conditions during the intermeeting period. for aircraft more than offset persisting strength in The directive stated that in the context of the Comspending on office and computing equipment, and mittee's long-run objectives for price stability and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 1013 sustainable economic growth, and giving careful rates somewhat below the upper bounds of their consideration to economic, financial, and monetary respective ranges for the year. Expansion in total developments, somewhat greater reserve restraint domestic nonfinancial debt had been moderate on would be acceptable and slightly lesser reserve balance over recent months and had remained in the restraint might be acceptable during the intermeeting middle portion of its range. period. The reserve conditions associated with this The staff forecast prepared for this meeting sugdirective were expected to be consistent with moder- gested that the expansion would slow to a rate ate growth of M2 and M3 over coming months. around, or perhaps a little above, the economy's With economic growth moderating and inflation estimated growth potential. Consumer spending was quiescent, open market operations were directed projected to expand at a more moderate pace that toward maintaining the existing degree of pressure on would be in line with the projected increase in disposreserve positions throughout the intermeeting period. able income; the favorable effect of the earlier run-up The federal funds rate averaged a little higher than in equity prices on household wealth and the generthe level expected with an unchanged policy stance, ally ample availability of credit were expected to in part because of unexpectedly high demand for balance continuing consumer concerns about the reserves in late July and early August. On balance, adequacy of their savings and the restraining effect of most other short-term market interest rates declined high household debt burdens. Homebuilding was slightly, and intermediate- and long-term rates fell forecast to slow somewhat in response to the backup somewhat more, over the intermeeting period. In the in residential mortgage rates but to remain at a reladays immediately following the meeting, rates rose tively high level in the context of sustained income sharply in response to incoming data, notably the growth and the still-favorable cash flow afifordability employment report for June that market participants of home ownership. Business spending on equipment viewed as indicating increasing pressures on eco- and structures was projected to grow less rapidly in nomic resources and labor costs. Subsequently, how- light of the anticipated moderate growth of sales and ever, that rise was more than reversed when further profits. On balance, the external sector was expected data releases were interpreted as suggesting that the to exert a small restraining influence on economic economic expansion might be slowing and that the activity over the projection period. Only modest fisupturn in labor compensation was mild. Equity prices cal restraint was anticipated over the forecast horialso exhibited considerable volatility over the period zon. Inflation recently had been lifted by adverse since the Committee meeting on July 2-3, with major developments in energy markets and was projected to indexes of stock prices falling steeply through late remain above the levels of recent years, given the July before recouping part to most of their losses in high level of resource utilization, the effects of tight association with the bond market rally and favorable grain supplies on food prices, and a noticeable earnings reports. step-up in labor compensation reinforced by the legis- In foreign exchange markets, the trade-weighted lated rise in the federal minimum wage. value of the dollar in terms of the other G-10 curren- In the Committee's discussion of current and cies declined slightly over the intermeeting period. prospective economic developments, members com- The flow of information suggesting a slowing in U.S. mented that on balance the information received since economic growth and reduced prospects for a near- the July meeting, including anecdotal reports from term tightening of Federal Reserve policy weighed around the nation, pointed to some slowing in the against the dollar. On the other hand, the yen was growth of economic activity from a very rapid pace bolstered by incoming data suggesting that the Japa- during the spring. The extent of the slowing remained nese current account surplus was again widening, and uncertain, and it was unclear at this juncture whether the German mark benefited from the Bundesbank's the expansion would slow sufficiently to contain presinaction at a time when market participants were sures on labor and other producer resources. Nonetheexpecting a policy easing. less, broad measures of price inflation, adjusted to Growth of M2 and M3 moderated in July. Much of exclude their volatile food and energy components, the slowdown in the expansion of M2 was associated did not exhibit any uptrend despite robust growth in with an unexpected decline in demand deposits, economic activity this year and high levels of which had grown rapidly earlier in the year. With resource use. Indeed, some price measures suggested bank credit expanding sluggishly, the funding needs that inflation had trended lower through the second of banks were modest, and the slower growth of M2 quarter. Moreover, there were no early signs of presshowed through to M3. For the year through July, sures or imbalances in the industrial sector. In labor both aggregates were estimated to have increased at markets, however, there were increasing indications Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1014 Federal Reserve Bulletin • November 1996 of tightness that might at some point feed through to lar circumstances. One factor tending to hold down greater inflation. Upward wage adjustments were prices has been highly competitive markets— becoming more evident and increases in overall com- throughout the nation and internationally as well— pensation had edged up, suggesting the possibility of that have made it very difficult for business firms further increases in labor costs at current or higher to raise prices. Another key factor, though one whose levels of labor utilization even before taking account importance might now be starting to diminish, was of the effects of the rise in the minimum wage. the persistence of comparatively small increases in Although increases in compensation might be moder- labor compensation, which remained appreciably ated by greater productivity or absorbed for a time by below earlier norms in relation to levels of unemploylower profit margins, the risks seemed tilted toward ment. This development appeared to reflect worker increases in inflation at some point, especially if the concerns about job security in a period of major growth of the economy continued to outstrip its business restructuring and downsizing activities as potential and added to pressures on resources. well as substantially reduced increases in benefit In the course of the Committee's discussion, mem- costs, notably those relating to health care. bers cited a variety of indications that economic In assessing whether a relatively favorable inflagrowth was slowing from a very rapid pace, and they tion performance was likely to continue, the mempointed to a number of factors that in their view bers focused on a variety of issues. One was whether should promote continued, though more moderate, the expansion would moderate sufficiently to keep expansion in economic activity. These included gen- pressures on labor and other resources from intensifyerally supportive financial conditions, relatively high ing. Another was whether a rate of unemployment in levels of consumer confidence, and the absence of the vicinity of its current level would foster added major imbalances in the economy. It was noted that wage pressures. Uncertainty also surrounded the much of the stimulus for the strong expansion in the extent to which further increases in labor compensafirst half of the year had been provided by large tion costs, should they materialize, would be passed increases in spending for consumer durables, hous- through to higher prices. Improvements in productiving, and business equipment; however, growth in ity were likely to offset part of such increases, but such spending could be expected to slow in the how much remained an open question. In addition, context of increasingly satisfied pent-up demands and profit margins were high, but the extent to which they the lagged effects of earlier increases in intermediate- might narrow to absorb increasing labor costs was and long-term interest rates on these interest-sensitive difficult to predict. With regard to the outlook for sectors of the economy. A key uncertainty in the wages, members observed that, though it was too outlook was the prospective behavior of inventories. early to reach a firm judgment, the acceleration of Should the expansion in final demand fail to moder- wage increases this year might well augur faster ate to a sustainable pace, business firms would be advances that were more in line with historical expelikely to intensify their efforts to build their inven- rience under essentially full employment conditions. tories, which currently were widely viewed as satis- Moreover, the tendency toward reduced increases in factory or even relatively lean in relation to sales. the costs of benefits might tend to dissipate, though While some buildup in inventories appeared to be some members commented that further economies in occurring in the current quarter, developments that the provision of medical services might well be might lead to a sharp increase in inventory invest- achievable for some period. On balance, the inflation ment, such as shortages of various goods and materi- risks in the outlook clearly seemed to be to the als and lengthening delays in securing deliveries, upside, with the potential for more inflation stemwere not in evidence at this time. Accordingly, ming from rising labor compensation costs augaggressive inventory accumulation remained an mented by a rise in the minimum wage and the upside risk to the projected expansion but not one prospect of higher food prices and perhaps energy that was likely to materialize unless final demand prices over the next several quarters. were to exceed current forecasts by a significant In the Committee's discussion of policy for the margin. intermeeting period ahead, members focused on indi- In their discussion of the outlook for inflation, cations that the economy already was slowing, permembers observed that increases in prices had haps by enough to limit pressures on resources, and remained remarkably subdued for an extended period they noted that broad statistical measures of prices in relation to measures of resource utilization, nota- and the anecdotal evidence did not suggest that a bly the rate of unemployment. Such behavior differed pickup in inflation was already under way. Consemarkedly from the historical experience under simi- quently, all but one of the members supported a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 1015 proposal to maintain an unchanged policy stance. A reserve restraint might be acceptable during the internumber also commented that real interest rates were meeting period. The reserve conditions contemplated not unusually low, suggesting that any pickup in at this meeting were expected to be consistent with inflationary pressures, should that occur, would be moderate growth of M2 and M3 over coming months. modest and readily contained. One concern was that At the conclusion of the meeting, the Federal policy tightening at this point might generate an Reserve Bank of New York was authorized and excessive reaction in financial markets, both because directed, until instructed otherwise by the Commitit was not generally expected and because it would tee, to execute transactions in the System Account in represent a change in policy direction that might well accordance with the following domestic policy lead to expectations of further policy tightening. Such directive: a development could have serious adverse consequences for economic activity if the expansion was in The information reviewed at this meeting suggests that fact already slowing to a more sustainable and less growth in economic activity recently has moderated someinflationary pace. These members therefore con- what. Private nonfarm payroll employment grew less rapcluded that the prudent course at this point was to idly in July, the average workweek fell sharply, and the await further developments that would permit them civilian unemployment rate edged up to 5.4 percent. Industrial production increased slightly in July after three months to assess the possible need for some tightening with a of strong gains. Real consumer spending weakened somehigher degree of confidence. At the same time, it was what on balance over June and July following several emphasized that the Committee remained committed months of robust growth. Housing starts fell somewhat to a policy that would resist a rise in inflation; such a further in July. Growth in spending on business equipment policy would entail moving in anticipation of greater and nonresidential structures has slowed after a very rapid expansion earlier in the year. The nominal deficit on U.S. price pressures and before they showed through to trade in goods and services widened in the second quarter actual inflation. Accordingly, they also agreed on the from its rate in the first quarter. Increases in labor compendesirability of a directive that remained biased toward sation have been somewhat larger this year, but consumer possible tightening in the intermeeting period ahead. price inflation, adjusted for food and energy prices, has Such a directive would imply that any tightening remained on a fairly steady trend. should be implemented promptly if developments Most short-term market interest rates have declined slightly while intermediate- and long-term rates have fallen were perceived as pointing to rising inflation. For somewhat more since the Committee meeting on July 2-3, now, the Committee should remain particularly vigi- 1996. In foreign exchange markets, the trade-weighted lant to incoming information bearing on the outlook value of the dollar in terms of the other G-10 currencies for inflation. has depreciated slightly over the intermeeting period. Growth of M2 and M3 moderated in July. For the year A differing view gave more weight to the risks of through July, both aggregates are estimated to have grown rising inflation. In this view, while there were uncerat rates somewhat below the upper bounds of their respectainties, the weight of the evidence suggested that a tive ranges for the year. Expansion in total domestic nonfiprompt policy action was needed to contain inflation nancial debt has been moderate on balance over recent and set the stage for further progress toward price months and has remained in the middle portion of its range. The Federal Open Market Committee seeks monetary stability. The possibility of an overreaction in finanand financial conditions that will foster price stability and cial markets to a tightening move could not be ruled promote sustainable growth in output. In furtherance of out, but such a reaction was likely to be short-lived. these objectives, the Committee at its meeting in July More importantly, a prompt action would reduce the reaffirmed the ranges it had established in January for risk that inflation would worsen and pose difficult growth of M2 and M3 of 1 to 5 percent and 2 to 6 percent respectively, measured from the fourth quarter of 1995 to problems for monetary policy later. the fourth quarter of 1996. The monitoring range for At the conclusion of the Committee's discussion, growth of total domestic nonfinancial debt was maintained all but one member indicated that they supported a at 3 to 7 percent for the year. For 1997 the Committee directive that called for maintaining the existing agreed on a tentative basis to set the same ranges as in degree of pressure on reserve positions and that 1996 for growth of the monetary aggregages and debt, measured from the fourth quarter of 1996 to the fourth included a bias toward the possible firming of reserve quarter of 1997. The behavior of the monetary aggregates conditions during the intermeeting period. Accordwill continue to be evaluated in the light of progress ingly, in the context of the Committee's long-run toward price level stability, movements in their velocities, objectives for price stability and sustainable eco- and developments in the economy and financial markets. nomic growth, and giving careful consideration to In the implementation of policy for the immediate future, economic, financial, and monetary developments, the the Committee seeks to maintain the existing degree of pressure on reserve positions. In the context of the Com- Committee decided that somewhat greater reserve mittee's long-run objectives for price stability and sustainrestraint would be acceptable and slightly lesser able economic growth, and giving careful consideration to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1016 Federal Reserve Bulletin • November 1996 economic, financial, and monetary developments, some- sustained improvement in productivity, the prevailing what greater reserve restraint would or slightly lesser pattern of demand might engender an increase in reserve restraint might be acceptable in the intermeeting inflationary pressures, and that such pressures would period. The contemplated reserve conditions are expected ultimately threaten the ongoing economic expansion. to be consistent with moderate growth in M2 and M3 over In Mr. Stern's judgment, it was prudent at this point coming months. to resist such a development in order to lay a founda- Votes for this action: Messrs. Greenspan, McDonough, tion for the long-term health of the economy. Boehne, Jordan, Kelley, Lindsey, McTeer, Meyer, Mses. It was agreed that the next meeting of the Commit- Phillips, Rivlin, and Yellen. Vote against this action: tee would be held on Tuesday, September 24, 1996. Mr. Stern. The meeting adjourned at 12:45 p.m. Mr. Stern dissented because he believed that policy should become modestly more restrictive. He was Donald L. Kohn concerned that, in the absence of a substantial and Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1017 Legal Developments FINAL R ULE—AMENDMENT TO REGULATION B 3. In Supplement I to Part 202, under Section 202.5 Rules Concerning Taking of Applications, under 5(e) Written The Board of Governors is amending 12 C.F.R. Part 202, applications., paragraph 3 is revised to read as follows: its official staff commentary to Regulation B (Equal Credit Opportunity). The commentary applies and interprets the requirements of Regulation B and substitutes for individual Section 202.5—Rules Concerning Taking of staff interpretations. The revisions to the commentary pro- Applications vide guidance on issues that the Board has been asked to clarify, including credit scoring and spousal signature rules. Effective September 30, 1996, 12 C.F.R. Part 202 is 5(e) Written applications. amended as follows: Part 202—Equal Credit Opportunity (Regulation B) 3. Computerized entry. Information entered directly into and retained by a computerized system qualifies as a 1. The authority citation for Part 202 continues to read as written application under this paragraph. (See the comfollows: mentary to section 202.13(b), Applications through electronic media and Applications through video.) Authority: 15 U.S.C. 1691-1691 f. 2. In Supplement I to Part 202, under Section 202.2 Defini- 4. In Supplement I to Part 202, under Section 202.6 Rules tions, under 2(p) Empirically derived and other credit Concerning Evaluation of Applications, under paragraph scoring systems., four new sentences are added at the end 6(b)(2), paragraph 2 is revised; paragraphs 4 and 5 are of paragraph 2 to read as follows: redesignated as paragraphs 5 and 6, respectively; and new paragraph 4 is added to read as follows: Supplement I to Part 202—Official Staff Interpretations Section 202.6—Rules Concerning Evaluation of Applications Section 202.2—Definitions Paragraph 6(b)(2) 2(p) Empirically derived and other credit scoring systems. 2. Consideration of age in a credit scoring system. Age may be taken directly into account in a credit scoring system that is "demonstrably and statistically sound," as 2. * * * To ensure that predictive ability is being maindefined in section 202.2(p), with one limitation: applitained, creditors must periodically review the performance cants 62 years or older must be treated at least as of the system. This could be done, for example, by analyzfavorably as applicants who are under 62. If age is ing the loan portfolio to determine the delinquency rate for scored by assigning points to an applicant's age cateeach score interval, or by analyzing population stability gory, elderly applicants must receive the same or a over time to detect deviations of recent applications from greater number of points as the most favored class of the applicant population used to validate the system. If this nonelderly applicants. analysis indicates that the system no longer predicts risk i. Age-split scorecards. A creditor may segment the with statistical soundness, the system must be adjusted as population into scorecards based on the age of an necessary to reestablish its predictive ability. A creditor is applicant. In such a system, one card covers a narrow responsible for ensuring its system is validated and revaliage range (for example, applicants in their twenties or dated based on the creditor's own data when it becomes younger) who are evaluated under attributes predicavailable. tive for that age group. A second card covers all other applicants who are evaluated under the attributes pre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1018 Federal Reserve Bulletin • November 1996 dictive for that broad class. When a system uses a card of ownership and the property's susceptibility to atcovering a wide age range that encompasses elderly tachment, execution, severance, or partition; the value applicants, the credit scoring system does not score of the applicant's interest after such action; and the age. Thus, the system does not raise the issue of cost associated with the action. This determination assigning a negative factor or value to the age of must be based on the form of ownership prior to or at elderly applicants. But if a system segments the popu- consummation, and not on the possibility of a subselation by age into multiple scorecards, and includes quent change. For example, in determining whether a elderly applicants in a narrower age range, the credit married applicant's interest in jointly owned property scoring system does score age. To comply with the act is sufficient to satisfy the creditor's standards of credand regulation in such a case, the creditor must ensure itworthiness for individual credit, a creditor may not that the system does not assign a negative factor or consider that the applicant's separate property may be value to the age of elderly applicants as a class. transferred into tenancy by the entirety after consummation. Similarly, a creditor may not consider the possibility that the couple may divorce. Accordingly, 4. Consideration of age in a reverse mortgage. A reverse a creditor may not require the signature of the nonapmortgage is a home-secured loan in which the borrower plicant spouse in these or similar circumstances, receives payments from the creditor, and does not be- ii. Other options to support credit. If the applicant's come obligated to repay these amounts (other than in the interest in jointly owned property does not support the case of default) until the borrower dies, moves perma- amount and terms of credit sought, the creditor may nently from the home or transfers title to the home, or offer the applicant other options to provide additional upon a specified maturity date. Disbursements to the support for the extension of credit. For example— borrower under a reverse mortgage typically are deter- A. Requesting an additional party (see section mined by considering the value of the borrower's 202.7(d)(5)); home, the current interest rate, and the borrower's life B. Offering to grant the applicant's request on a expectancy. A reverse mortgage program that requires secured basis (see section 202.7(d)(4)); or borrowers to be age 62 or older is permissible under C. Asking for the signature of the joint owner on an section 202.6(b)(2)(iv). In addition, under sec- instrument that ensures access to the property in the tion 202.6(b)(2)(iii), a creditor may consider a borrow- event of the applicant's death or default, but does er's age to evaluate a pertinent element of creditworthi- not impose personal liability unless necessary unness, such as the amount of the credit or monthly pay- der state law (e.g., a limited guarantee). A creditor ments that the borrower will receive, or the estimated may not routinely require, however, that a joint repayment date. owner sign an instrument (such as a quitclaim deed) that would result in the forfeiture of the joint owner's interest in the property. 5. In Supplement I to Part 202, Section 202.7—Rules Concerning Extensions of Credit, is amended as follows: a. Under Paragraph 7(d)(2), paragraph 1. is revised; and b. Paragraph 7(d)(6) is revised. Paragraph 7(d)(6) The revisions read as follows: 1. Guarantees. A guarantee on an extension of credit is part of a credit transaction and therefore subject to the regulation. A creditor may require the personal guaran- Section 202.7—Rules Concerning Extensions of tee of the partners, directors, or officers of a business, Credit and the shareholders of a closely held corporation, even if the business or corporation is creditworthy. The requirement must be based on the guarantor's relationship Paragraph 7(d)(2) with the business or corporation, however, and not on a 1. Jointly owned property. If an applicant requests unse- prohibited basis. For example, a creditor may not require cured credit, does not own sufficient separate property, guarantees only for women-owned or minority-owned and relies on joint property to establish creditworthiness, businesses. Similarly, a creditor may not require guaranthe creditor must value the applicant's interest in the tees only from the married officers of a business or jointly owned property. A creditor may not request that a married shareholders of a closely held corporation. nonapplicant joint owner sign any instrument as a condi- 2. Spousal guarantees. The rules in section 202.7(d) bar tion of the credit extension unless the applicant's interest a creditor from requiring a signature of a guarantor's does not support the amount and terms of the credit spouse just as they bar the creditor from requiring the sought. signature of an applicant's spouse. For example, ali. Valuation of applicant's interest. In determining the though a creditor may require all officers of a closely value of an applicant's interest in jointly owned prop- held corporation to personally guarantee a corporate erty, a creditor may consider factors such as the form loan, the creditor may not automatically require that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1019 spouses of married officers also sign the guarantee. If an Board has reviewed Regulation M, pursuant to its policy of evaluation of the financial circumstances of an officer periodically reviewing its regulations, and has revised the indicates that an additional signature is necessary, how- regulation to carry out more effectively the purposes of the ever, the creditor may require the signature of a spouse Act. The final rule adds disclosures, primarily in connecin appropriate circumstances in accordance with section tion with motor vehicle leasing, including, for example, 202.7(d)(2). disclosures about early termination charges and how sched- 6. In Supplement I to Part 202, Section 202.13— uled payments are derived (which requires disclosure of Information for Monitoring Purposes, is amended as fol- such items as the gross capitalized cost of a lease, the lows: vehicle's residual value, the rent charge, and depreciation). a. Under 13(a) Information to be requested., paragraph 6 General changes in the format of the disclosures require is revised; and that certain leasing disclosures be segregated from other b. Under 13(b) Obtaining of information., paragraphs 4 information. Revisions to the advertising provisions impleand 5 are redesignated as paragraphs 6 and 7, respec- ment a statutory amendment, allowing a toll-free number tively, and new paragraphs 4 and 5 are added. to substitute for certain disclosures in radio and television The revisions and additions are to read as follows: advertisements, and make other changes to the advertising rules. A lessor is not required to disclose the cost of a lease expressed as a percentage rate; however, if a rate is disclosed or advertised, a special notice must accompany the Section 202.13 Information for Monitoring rate. Further, a rate in an advertisement cannot be more purposes prominent than any other Regulation M disclosure. Effective October 31, 1996, 12 C.F.R. Part 213 is 13(a) Information to be requested. amended as follows: Part 213—Consumer Leasing (Regulation M) 6. Refinancings. A refinancing occurs when an existing obligation is satisfied and replaced by a new obligation 1. The authority citation for Part 213 continues to read as undertaken by the same borrower. A creditor that refollows: ceives an application to refinance an existing extension of credit made by that creditor for the purchase of the Authority: 15 U.S.C. 1604. applicant's dwelling may request the monitoring information again but is not required to do so if it was 2. The table of contents to Part 213 is revised to read as obtained in the earlier transaction. follows: 13(b) Obtaining of information. Section 213.1 Authority, scope, purpose, and enforcement. 4. Applications through electronic media. If an applicant 213.2 Definitions. applies through an electronic medium (for example, the 213.3 General disclosure requirements. Internet or a facsimile) without video capability that 213.4 Content of disclosures. allows the creditor to see the applicant, the creditor may 213.5 Renegotiations, extensions, and assumptions. treat the application as if it were received by mail or 213.6 [Reserved] telephone. 213.7 Advertising. 5. Applications through video. If a creditor takes an 213.8 Record retention. application through a medium that allows the creditor to 213.9 Relation to state laws. see the applicant, the creditor treats the application as Appendix A to Part 213 — Model Forms taken in person and must note the monitoring informa- Appendix B to Part 213 — Federal Enforcement Agencies tion on the basis of visual observation or surname, if the Appendix C to Part 213 — Issuance of Staff Interpretations applicant chooses not to provide the information. Supplement I to Part 213 — Official Staff Commentary to Regulation M 3. Part 213 is amended as follows: a. Sections 213.1 through 213.5 are revised; FINAL RULE—AMENDMENT TO REGULATION M b. Section 213.6 is removed and reserved; c. Sections 213.7 and 213.8 are revised; The Board of Governors is amending 12 C.F.R. Part 213, d. Section 213.9 is added; its Regulation M (Consumer Leasing). The Consumer e. Appendices A through C are revised; and, Leasing Act requires lessors to provide uniform cost and f. Appendix D is removed. other disclosures about consumer lease transactions. The The revisions and additions read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1020 Federal Reserve Bulletin • November 1996 Section 213.1—Authority, scope, purpose, and (i) The lessee has no liability for the value of the enforcement. personal property at the end of the lease term except for abnormal wear and tear, and (a) Authority. The regulation in this part, known as Regula- (ii) The lessee has no option to purchase the leased tion M, is issued by the Board of Governors of the Federal property. Reserve System to implement the consumer leasing provi- (f) Gross capitalized cost means the amount agreed upon sions of the Truth in Lending Act, which is Title I of the by the lessor and the lessee as the value of the leased Consumer Credit Protection Act, as amended (15 U.S.C. property and any items that are capitalized or amortized 1601 et seq.). during the lease term, including but not limited to taxes, (b) Scope and purpose. This part applies to all persons that insurance, service agreements, and any outstanding balare lessors of personal property under consumer leases as ance from a prior loan or lease. Capitalized cost reduction those terms are defined in sections 213.2(e)(1) and (h). The means the total amount of any rebate, cash payment, net purpose of this part is: trade-in allowance, and noncash credit that reduces the (1) To ensure that lessees of personal property receive gross capitalized cost. The adjusted capitalized cost equals meaningful disclosures that enable them to compare the gross capitalized cost less the capitalized cost reduclease terms with other leases and, where appropriate, tion, and is the amount used by the lessor in calculating the with credit transactions; base periodic payment. (2) To limit the amount of balloon payments in con- (g) Lessee means a natural person who enters into or is sumer lease transactions; and offered a consumer lease. (3) To provide for the accurate disclosure of lease terms (h) Lessor means a person who regularly leases, offers to in advertising. lease, or arranges for the lease of personal property under a (c) Enforcement and liability. Section 108 of the act con- consumer lease. A person who has leased, offered, or tains the administrative enforcement provisions. Sec- arranged to lease personal property more than five times in tions 112, 130, 131, and 185 of the act contain the liability the preceding calendar year or more than five times in the provisions for failing to comply with the requirements of current calendar year is subject to the act and this part. the act and this part. (i) Open-end lease means a consumer lease in which the lessee's liability at the end of the lease term is based on the difference between the residual value of the leased property Section 213.2—Definitions. and its realized value. (j) Organization means a corporation, trust, estate, partner- For the purposes of this part the following definitions ship, cooperative, association, or government entity or apply: instrumentality. (a) Act means the Truth in Lending Act (15 U.S.C. 1601 (k) Person means a natural person or an organization. et seq.) and the Consumer Leasing Act is chapter 5 of the (1) Personal property means any property that is not real Truth In Lending Act. property under the law of the state where the property is (b) Advertisement means a commercial message in any located at the time it is offered or made available for lease, medium that directly or indirectly promotes a consumer (m) Realized value means: lease transaction. (1) The price received by the lessor for the leased (c) Board refers to the Board of Governors of the Federal property at disposition; Reserve System. (2) The highest offer for disposition of the leased prop- (d) Closed-end lease means a consumer lease other than an erty; or open-end lease as defined in this section. (3) The fair market value of the leased property at the (e)(1) Consumer lease means a contract in the form of a end of the lease term. bailment or lease for the use of personal property by a (n) Residual value means the value of the leased property natural person primarily for personal, family, or houseat the end of the lease term, as estimated or assigned at hold purposes, for a period exceeding four months and consummation by the lessor, used in calculating the base for a total contractual obligation not exceeding $25,000, periodic payment. whether or not the lessee has the option to purchase or (o) Security interest and security mean any interest in otherwise become the owner of the property at the property that secures the payment or performance of an expiration of the lease. Unless the context indicates obligation. otherwise, in this part "lease" means "consumer lease." (p) State means any state, the District of Columbia, the (2) The term does not include a lease that meets the Commonwealth of Puerto Rico, and any territory or possesdefinition of a credit sale in Regulation Z (12 C.F.R. sion of the United States. 226.2(a)). It also does not include a lease for agricultural, business, or commercial purposes or a lease made to an organization. Section 213.3—General disclosure requirements. (3) This part does not apply to a lease transaction of personal property which is incident to the lease of real (a) General requirements. A lessor shall make the discloproperty and which provides that: sures required by section 213.4, as applicable. The disclo- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1021 sures shall be made clearly and conspicuously in writing in (1) That payments must be collected in whole cents; a form the consumer may keep, in accordance with this (2) That dates of scheduled payments may be different section. because a scheduled date is not a business day; (1) Form of disclosures. The disclosures required by (3) That months have different numbers of days; and section 213.4 shall be given to the lessee together in a (4) That February 29 occurs in a leap year. dated statement that identifies the lessor and the lessee; the disclosures may be made either in a separate state- Section 213.4—Content of disclosures. ment that identifies the consumer lease transaction or in the contract or other document evidencing the lease. For any consumer lease subject to this part, the lessor shall Alternatively, the disclosures required to be segregated disclose the following information, as applicable: from other information under paragraph (a)(2) of this (a) Description of property. A brief description of the section may be provided in a separate dated statement leased property sufficient to identify the property to the that identifies the lease, and the other required disclo- lessee and lessor. sures may be provided in the lease contract or other (b) Amount due at lease signing. The total amount to be document evidencing the lease. In a lease of multiple paid prior to or at consummation, using the term "amount items, the property description required by sec- due at lease signing." The lessor shall itemize each compotion 213.4(a) may be given in a separate statement that is nent by type and amount, including any refundable security incorporated by reference in the disclosure statement deposit, advance monthly or other periodic payment, and required by this paragraph. capitalized cost reduction; and in motor-vehicle leases, (2) Segregation of certain disclosures. The following shall itemize how the amount due will be paid, by type and disclosures shall be segregated from other information amount, including any net trade-in allowance, rebates, nonand shall contain only directly related information: sec- cash credits, and cash payments in a format substantially tions 213.4(b) through (f), (g)(2), (h)(3), (i)(l), (j), and similar to the model forms in Appendix A of this part. (m)(l). The headings, content, and format for the disclo- (c) Payment schedule and total amount of periodic paysures referred to in this paragraph (a)(2) shall be pro- ments. The number, amount, and due dates or periods of vided in a manner substantially similar to the applicable payments scheduled under the lease, and the total amount model form in appendix A of this part. of the periodic payments. (3) Timing of disclosures. A lessor shall provide the (d) Other charges. The total amount of other charges disclosures to the lessee prior to the consummation of a payable to the lessor, itemized by type and amount, that are consumer lease. not included in the periodic payments. Such charges in- (4) Language of disclosures. The disclosures required by clude the amount of any liability the lease imposes upon section 213.4 may be made in a language other than the lessee at the end of the lease term; the potential English provided that they are made available in English difference between the residual and realized values referred upon the lessee's request. to in paragraph (k) of this section is excluded. (b) Additional information; nonsegregated disclosures. Ad- (e) Total of payments. The total of payments, with a deditional information may be provided with any disclosure scription such as "the amount you will have paid by the not listed in paragraph (a)(2) of this section, but it shall not end of the lease." This amount is the sum of the amount be stated, used, or placed so as to mislead or confuse the due at lease signing (less any refundable amounts), the lessee or contradict, obscure, or detract attention from any total amount of periodic payments (less any portion of the disclosure required by this part. periodic payment paid at lease signing), and other charges (c) Multiple lessors or lessees. When a transaction involves under paragraphs (b), (c), and (d) of this section. In an more than one lessor, the disclosures required by this part open-end lease, a description such as "you will owe an may be made by one lessor on behalf of all the lessors. additional amount if the actual value of the vehicle is less When a lease involves more than one lessee, the lessor may than the residual value" shall accompany the disclosure. provide the disclosures to any lessee who is primarily (f) Payment calculation. In a motor-vehicle lease, a matheliable on the lease. matical progression of how the scheduled periodic pay- (d) Use of estimates. If an amount or other item needed to ment is derived, in a format substantially similar to the comply with a required disclosure is unknown or unavail- applicable model form in Appendix A of this part, which able after reasonable efforts have been made to ascertain shall contain the following: the information, the lessor may use a reasonable estimate (1) Gross capitalized cost. The gross capitalized cost, that is based on the best information available to the lessor, including a disclosure of the agreed upon value of the is clearly identified as an estimate, and is not used to vehicle, a description such as "the agreed upon value of circumvent or evade any disclosures required by this part. the vehicle [state the amount] and any items you pay for (e) Effect of subsequent occurrence. If a required disclosure over the lease term (such as service contracts, insurance, becomes inaccurate because of an event occurring after and any outstanding prior loan or lease balance)," and a consummation, the inaccuracy is not a violation of this statement of the lessee's option to receive a separate part. written itemization of the gross capitalized cost. If re- (f) Minor variations. A lessor may disregard the effects of quested by the lessee, the itemization shall be provided the following in making disclosures: before consummation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1022 Federal Reserve Bulletin • November 1996 (2) Capitalized cost reduction. The capitalized cost re- (3) Notice of wear and use standard. In a motor-vehicle duction, with a description such as "the amount of any lease, a notice regarding wear and use substantially net trade-in allowance, rebate, noncash credit, or cash similar to the following: "Excessive Wear and Use. You you pay that reduces the gross capitalized cost." may be charged for excessive wear based on our stan- (3) Adjusted capitalized cost. The adjusted capitalized dards for normal use." The notice shall also specify the cost, with a description such as "the amount used in amount or method for determining any charge for excess calculating your base [periodic] payment." mileage. (4) Residual value. The residual value, with a descrip- (i) Purchase option. A statement of whether or not the tion such as "the value of the vehicle at the end of the lessee has the option to purchase the leased property, and: lease used in calculating your base [periodic] payment." (1) End of lease term. If at the end of the lease term, the (5) Depreciation and any amortized amounts. The depre- purchase price; and ciation and any amortized amounts, which is the differ- (2) During lease term. If prior to the end of the lease ence between the adjusted capitalized cost and the resid- term, the purchase price or the method for determining ual value, with a description such as "the amount the price and when the lessee may exercise this option. charged for the vehicle's decline in value through nor- (j) Statement referencing nonsegregated disclosures. A mal use and for any other items paid over the lease statement that the lessee should refer to the lease docuterm." ments for additional information on early termination, pur- (6) Rent charge. The rent charge, with a description such chase options and maintenance responsibilities, warranties, as "the amount charged in addition to the depreciation late and default charges, insurance, and any security interand any amortized amounts." This amount is the differ- ests, if applicable. ence between the total of the base periodic payments (k) Liability between residual and realized values. A stateover the lease term minus the depreciation and any ment of the lessee's liability, if any, at early termination or amortized amounts. at the end of the lease term for the difference between the (7) Total of base periodic payments. The total of base residual value of the leased property and its realized value. periodic payments with a description such as "deprecia- (1) Right of appraisal. If the lessee's liability at early tion and any amortized amounts plus the rent charge." termination or at the end of the lease term is based on the (8) Lease term. The lease term with a description such as realized value of the leased property, a statement that the "the number of [periods of repayment] in your lease." lessee may obtain, at the lessee's expense, a professional (9) Base periodic payment. The total of the base periodic appraisal by an independent third party (agreed to by the payments divided by the number of payment periods in lessee and the lessor) of the value that could be realized at the lease. sale of the leased property. The appraisal shall be final and (10) Itemization of other charges. An itemization of any binding on the parties. other charges that are part of the periodic payment. (m) Liability at end of lease term based on residual value. (11) Total periodic payment. The sum of the base peri- If the lessee is liable at the end of the lease term for the odic payment and any other charges that are part of the difference between the residual value of the leased property periodic payment. and its realized value: (g) Early termination. (1) Conditions and disclosure of (1) Rent and other charges. The rent and other charges, charges. A statement of the conditions under which the paid by the lessee and required by the lessor as an lessee or lessor may terminate the lease prior to the end incident to the lease transaction, with a description such of the lease term; and the amount or a description of the as "the total amount of rent and other charges imposed method for determining the amount of any penalty or in connection with your lease [state the amount]." other charge for early termination, which must be rea- (2) Excess liability. A statement about a rebuttable presonable. sumption that, at the end of the lease term, the residual (2) Early-termination notice. In a motor-vehicle lease, a value of the leased property is unreasonable and not in notice substantially similar to the following: "Early good faith to the extent that the residual value exceeds Termination. You may have to pay a substantial charge the realized value by more than three times the base if you end this lease early. The charge may be up to monthly payment (or more than three times the average several thousand dollars. The actual charge will depend payment allocable to a monthly period, if the lease calls on when the lease is terminated. The earlier you end the for periodic payments other than monthly); and that the lease, the greater this charge is likely to be." lessor cannot collect the excess amount unless the lessor (h) Maintenance responsibilities. The following provisions brings a successful court action and pays the lessee's are required: reasonable attorney's fees, or unless the excess of the (1) Statement of responsibilities. A statement specifying residual value over the realized value is due to unreasonwhether the lessor or the lessee is responsible for main- able or excessive wear or use of the leased property (in taining or servicing the leased property, together with a which case the rebuttable presumption does not apply). brief description of the responsibility; (3) Mutually agreeable final adjustment. A statement (2) Wear and use standard. A statement of the lessor's that the lessee and lessor are permitted, after termination standards for wear and use (if any), which must be of the lease, to make any mutually agreeable final adjustreasonable; and ment regarding excess liability. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1023 (n) Fees and taxes. The total dollar amount for all official (4) A substitution of leased property with property that and license fees, registration, title, or taxes required to be has a substantially equivalent or greater economic value, paid to the lessor in connection with the lease, provided no other lease terms are changed; (o) Insurance. A brief identification of insurance in connec- (5) The addition, deletion, or substitution of leased proption with the lease including: erty in a multiple-item lease, provided the average peri- (1) Voluntary insurance. If the insurance is provided by odic payment does not change by more than 25 percent; or paid through the lessor, the types and amounts of or coverage and the cost to the lessee; or (6) An agreement resulting from a court proceeding. (2) Required insurance. If the lessee must obtain the insurance, the types and amounts of coverage required Section 213.6—[Reserved] of the lessee. (p) Warranties or guarantees. A statement identifying all Section 213.7—Advertising. express warranties and guarantees from the manufacturer or lessor with respect to the leased property that apply to (a) General rule. An advertisement for a consumer lease the lessee. may state that a specific lease of property at specific (q) Penalties and other charges for delinquency. The amounts or terms is available only if the lessor usually and amount or the method of determining the amount of any customarily leases or will lease the property at those penalty or other charge for delinquency, default, or late amounts or terms. payments, which must be reasonable, (b) Clear and conspicuous standard. Disclosures required (r) Security interest. A description of any security interest, by this section shall be made clearly and conspicuously. other than a security deposit disclosed under paragraph (b) (1) Amount due at lease signing. Except for the stateof this section, held or to be retained by the lessor; and a ment of a periodic payment, any affirmative or negative clear identification of the property to which the security reference to a charge that is a part of the total amount interest relates. due at lease signing under paragraph (d)(2)(ii) of this (s) Limitations on rate information. If a lessor provides a section, such as the amount of any capitalized cost percentage rate in an advertisement or in documents evireduction (or no capitalized cost reduction is required), dencing the lease transaction, a notice stating that "this shall not be more prominent than the disclosure of the percentage may not measure the overall cost of financing total amount due at lease signing. this lease" shall accompany the rate disclosure. The lessor (2) Advertisement of a lease rate. If a lessor provides a shall not use the term "annual percentage rate," "annual percentage rate in an advertisement, the rate shall not be lease rate," or any equivalent term. more prominent than any of the disclosures in section 213.4, with the exception of the notice in sec- Section 213.5—Renegotiations, extensions, and tion 213.4(s) required to accompany the rate; and the assumptions. lessor shall not use the term "annual percentage rate," "annual lease rate," or equivalent term. (a) Renegotiation. A renegotiation occurs when a con- (c) Catalogs and multipage advertisements. A catalog or sumer lease subject to this part is satisfied and replaced by other multipage advertisement that provides a table or a new lease undertaken by the same consumer. A renegoti- schedule of the required disclosures shall be considered a ation requires new disclosures, except as provided in para- single advertisement if, for lease terms that appear without graph (d) of this section. all the required disclosures, the advertisement refers to the (b) Extension. An extension is a continuation, agreed to by page or pages on which the table or schedule appears. the lessor and the lessee, of an existing consumer lease (d) Advertisement of terms that require additional disclobeyond the originally scheduled end of the lease term, sure. except when the continuation is the result of a renegotia- (1) Triggering terms. An advertisement that states any of tion. An extension that exceeds six months requires new the following items shall contain the disclosures redisclosures, except as provided in paragraph (d) of this quired by paragraph (d)(2) of this section, except as section. provided in paragraphs (e) and (f) of this section: (c) Assumption. New disclosures are not required when a (i) The amount of any payment; consumer lease is assumed by another person, whether or (ii) The number of required payments; or not the lessor charges an assumption fee. (iii) A statement of any capitalized cost reduction or (d) Exceptions. New disclosures are not required for the other payment required prior to or at consummation, following, even if they meet the definition of a renegotia- or that no payment is required. tion or an extension: (2) Additional terms. An advertisement stating any item (1) A reduction in the lease charge; listed in paragraph (d)(1) of this section shall also state (2) The deferment of one or more payments, whether or the following items: not a fee is charged; (i) That the transaction advertised is a lease; (3) The extension of a lease for not more than six (ii) The total amount due at lease signing, or that no months on a month-to-month basis or otherwise; payment is required; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1024 Federal Reserve Bulletin • November 1996 (iii) The number, amounts, due dates or periods of by paragraph (d)(2) of this section orally, or in writing scheduled payments, and total of such payments un- upon request. der the lease; (iv) A statement of whether or not the lessee has the Section 213.8—Record retention. option to purchase the leased property, and where the lessee has the option to purchase at the end of the A lessor shall retain evidence of compliance with the lease term, the purchase-option price. The method of requirements imposed by this part, other than the advertisdetermining the purchase-option price may be substi- ing requirements under section 213.7, for a period of not tuted in disclosing the lessee's option to purchase the less than two years after the date the disclosures are released property prior to the end of the lease term; quired to be made or an action is required to be taken. (v) A statement of the amount, or the method for determining the amount, of the lessee's liability (if Section 213.9—Relation to state laws. any) at the end of the lease term; and (vi) A statement of the lessee's liability (if any) for (a) Inconsistent state law. A state law that is inconsistent the difference between the residual value of the leased with the requirements of the act and this part is preempted property and its realized value at the end of the lease to the extent of the inconsistency. If a lessor cannot comply term. with a state law without violating a provision of this part, (e) Alternative disclosures—merchandise tags. A merchan- the state law is inconsistent within the meaning of section dise tag stating any item listed in paragraph (d)(1) of this 186(a) of the act and is preempted, unless the state law section may comply with paragraph (d)(2) of this section gives greater protection and benefit to the consumer. A by referring to a sign or display prominently posted in the state, through an official having primary enforcement or lessor's place of business that contains a table or schedule interpretative responsibilities for the state consumer leasof the required disclosures. ing law, may apply to the Board for a preemption determi- (f) Alternative disclosures—television or radio advertise- nation. ments. (b) Exemptions. (1) Application. A state may apply to the (1) Toll-free number or print advertisement. An adver- Board for an exemption from the requirements of the act tisement made through television or radio stating any and this part for any class of lease transactions within item listed in paragraph (d)(1) of this section complies the state. The Board will grant such an exemption if the with paragraph (d)(2) of this section if the advertisement Board determines that: states the items listed in paragraphs (d)(2)(i) through (i) The class of leasing transactions is subject to state (iii) of this section, and: law requirements substantially similar to the act and (i) Lists a toll-free telephone number along with a this part or that lessees are afforded greater protection reference that such number may be used by consum- under state law; and ers to obtain the information required by paragraph (ii) There is adequate provision for state enforcement. (d)(2) of this section; or (2) Enforcement and liability. After an exemption has (ii) Directs the consumer to a written advertisement in been granted, the requirements of the applicable state a publication of general circulation in the community law (except for additional requirements not imposed by served by the media station, including the name and federal law) will constitute the requirements of the act the date of the publication, with a statement that and this part. No exemption will extend to the civil information required by paragraph (d)(2) of this sec- liability provisions of sections 130, 131, and 185 of the tion is included in the advertisement. The written act. advertisement shall be published beginning at least three days before and ending at least ten days after the broadcast. APPENDIX A TO PART 213—MODEL FORMS (2) Establishment of toll-free number. (i) The toll-free telephone number shall be available A-l Model Open-End or Finance Vehicle Lease Disclofor no fewer than ten days, beginning on the date of sures the broadcast. A-2 Model Closed-End or Net Vehicle Lease Disclosures (ii) The lessor shall provide the information required A-3 Model Furniture Lease Disclosures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1025 Appendix A-l Model Open-End or Finance Vehicle Lease Disclosures Federal Consumer Leasing Act Disclosures Date Lessor(s) Lessee(s) Amount Due at Monthly Payments Other Charges (not part of your monthly Total of Payments Lease Signing payment) (The amount you will have paid by the end of the lease) (Itemized below)* Your first monthly payment of $ Disposition fee (if you do is due on _, followed by not purchase the vehicle) $ payments of $ due on [Annual tax] the of each month. The total of your You will owe an additional monthly payments is $ amount if the actual value of Total $. the vehicle is less than the residual value. * Itemization of Amount Due at Lease Signing Amount Due At Lease Signing: How the Amount Due at Lease Signing will be paid: Capitalized cost reduction Net trade-in allowance First monthly payment Rebates and noncash credits Refundable security deposit Amount to be paid in cash Title fees Registration fees Total $ Total $ Your monthly payment is determined as shown below: Gross capitalized cost. The agreed upon value of the vehicle ($. ) and any items you pay over the lease term (such as service contracts, insurance, and any outstanding prior loan or lease balance) If you want an itemization of this amount, please check this box. • Capitalized cost reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay that reduces the gross capitalized cost Adjusted capitalized cost. The amount used in calculating your base monthly payment Residual value. The value of the vehicle at the end of the lease used in calculating your base monthly payment Depreciation and any amortized amounts. The amount charged for the vehicle's decline in value through normal use and for other items paid over the lease term Rent charge. The amount charged in addition to the depreciation and any amortized amounts Total of base monthly payments. The depreciation and any amortized amounts plus the rent charge Lease term. The number of months in your lease Base monthly payment Monthly sales/use tax + =$ Total monthly payment Rent and other charges. The total amount of rent and other charges imposed in connection with your lease $ Early Termination. You may have to pay a substantial charge if you end this lease early. The charge may be up to several thousand dollars. The actual charge will depend on when the lease is terminated. The earlier you end the lease, the greater this charge is likely to be. Excessive Wear and Use. You may be charged for excessive wear based on our standards for normal use [and for mileage in excess of miles per year at the rate of per mile]. Purchase Option at End of Lease Term. [You have an option to purchase the vehicle at the end of the lease term for $ [and a purchase option fee of $ ].] [You do not have an option to purchase the vehicle at the end of the lease term.] Other Important Terms. See your lease documents for additional information on early termination, purchase options and maintenance responsibilities, warranties, late and default charges, insurance, and any security interest, if applicable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1026 Federal Reserve Bulletin • November 1996 Appendix A-l Model Open-End or Finance Vehicle Lease Disclosures Page 2 of 2 [The following provisions are the nonsegregated disclosures required under Regulation M.] Official Fees and Taxes. The total amount you will pay for official and license fees, registration, title, and taxes over the term of your lease, whether included with your monthly payments or assessed otherwise: $ Insurance. The following types and amounts of insurance will be acquired in connection with this lease: We (lessor) will provide the insurance coverage quoted above for a total premium cost of $ You (lessee) agree to provide insurance coverage in the amount and types indicated above. End of Term Liability, (a) The residual value ($ ) of the vehicle is based on a reasonable, good faith estimate of the value of the vehicle at the end of the lease term. If the actual value of the vehicle at that time is greater than the residual value, you will have no further liability under this lease, except for other charges already incurred [and are entitled to a credit or refund of any surplus.] If the actual value of the vehicle is less than the residual value, you will be liable for any difference up to $ (3 times the monthly payment). For any difference in excess of that amount, you will be liable only if: 1. Excessive use or damage [as described in paragraph ] [representing more than normal wear and use] resulted in an unusually low value at the end of the term. 2. The matter is not otherwise resolved and we win a lawsuit against you seeking a higher payment. 3. You voluntarily agree with us after the end of the lease term to make a higher payment. Should we bring a lawsuit against you, we must prove that our original estimate of the value of the leased property at the end of the lease term was reasonable and was made in good faith. For example, we might prove that the actual was less than the original estimated value, although the original estimate was reasonable, because of an unanticipated decline in value for that type of vehicle. We must also pay your attorney's fees. (b) If you disagree with the value we assign to the vehicle, you may obtain, at your own expense, from an independent third party agreeable to both of us, a professional appraisal of the value of the leased vehicle which could be realized at sale. The appraised value shall then be used as the actual value. Standards for Wear and Use. The following standards are applicable for determining unreasonable or excess wear and use of the leased vehicle: Maintenance. [You are responsible for the following maintenance and servicing of the leased vehicle: ]. [We are responsible for the following maintenance and servicing of the leased vehicle: ]• Warranties. The leased vehicle is subject to the following express warranties: Early Termination and Default, (a) You may terminate this lease before the end of the lease term under the following conditions: The charge for such early termination is: (b) We may terminate this lease before the end of the lease term under the following conditions: Upon such termination we shall be entitled to the following charge(s) for: (c) To the extent these charges take into account the value of the vehicle at termination, if you disagree with the value we assign to the vehicle, you may obtain, at your own expense, from an independent third party agreeable to both of us, a professional appraisal of the value of the leased vehicle which could be realized at sale. The appraised value shall then be used as the actual value. Security Interest. We reserve a security interest of the following type in the property listed below to secure performance of your obligations under this lease: Late Payments. The charge for late payments is: Option to Purchase Leased Property Prior to the End of the Lease. [You have an option to purchase the leased vehicle prior to the end of the term. The price will be [$ /[the method of determining the price].] [You do not have an option to purchase the leased vehicle.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1027 Appendix A-2 Model Closed-End or Net Vehicle Lease Disclosures Federal Consumer Leasing Act Disclosures Date Lessor(s) Lessee(s) Amount Due at Monthly Payments Other Charges (not part of your monthly Total of Payments Lease Signing payment) (The amount you will have paid by the end of the lease) (Itemized below)* Your first monthly payment of $ Disposition fee (if you do is due on _, followed by not purchase the vehicle) $ payments of $ due on [Annual tax] the of each month. The total of your monthly payments is $ Total $. * Itemization of Amount Due at Lease Signing Amount Due At Lease Signing: How the Amount Due at Lease Signing will be paid: Capitalized cost reduction $ Net trade-in allowance $ First monthly payment Rebates and noncash credits Refundable security deposit Amount to be paid in cash Title fees Registration fees Total $ Total $ Your monthly payment is determined as shown below: Gross capitalized cost. The agreed upon value of the vehicle ($ ) and any items you pay over the lease term (such as service contracts, insurance, and any outstanding prior loan or lease balance) $ If you want an itemization of this amount, please check this box. d Capitalized cost reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay that reduces the gross capitalized cost — Adjusted capitalized cost. The amount used in calculating your base monthly payment — Residual value. The value of the vehicle at the end of the lease used in calculating your base monthly payment — Depreciation and any amortized amounts. The amount charged for the vehicle's decline in value through normal use and for other items paid over the lease term — Rent charge. The amount charged in addition to the depreciation and any amortized amounts — Total of base monthly payments. The depreciation and any amortized amounts plus the rent charge — Lease term. The number of months in your lease — Base monthly payment — Monthly sales/use tax — + Total monthly payment — Early Termination. You may have to pay a substantial charge if you end this lease early. The charge may be up to several thousand dollars. The actual charge will depend on when the lease is terminated. The earlier you end the lease, the greater this charge is likely to be. Excessive Wear and Use. You may be charged for excessive wear based on our standards for normal use [and for mileage in excess of miles per year at the rate of per mile]. Purchase Option at End of Lease Term. [You have an option to purchase the vehicle at the end of the lease term for $ [and a purchase option fee of $ ].] [You do not have an option to purchase the vehicle at the end of the lease term.] Other Important Terms. See your lease documents for additional information on early termination, purchase options and maintenance responsibilities, warranties, late and default charges, insurance, and any security interest, if applicable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1028 Federal Reserve Bulletin • November 1996 Appendix A-2 Model Closed-End or Net Vehicle Lease Disclosures Page 2 of 2 [The following provisions are the nonsegregated disclosures required under Regulation M.] Official Fees and Taxes. The total amount you will pay for official and license fees, registration, title, and taxes over the term of your lease, whether included with your monthly payments or assessed otherwise: $ . Insurance. The following types and amounts of insurance will be acquired in connection with this lease: We (lessor) will provide the insurance coverage quoted above for a total premium cost of $ You (lessee) agree to provide insurance coverage in the amount and types indicated above. Standards for Wear and Use. The following standards are applicable for determining unreasonable or excess wear and use of the leased vehicle: Maintenance. [You are responsible for the following maintenance and servicing of the leased vehicle: ]. [We are responsible for the following maintenance and servicing of the leased vehicle: ]• Warranties. The leased vehicle is subject to the following express warranties: Early Termination and Default, (a) You may terminate this lease before the end of the lease term under the following conditions: The charge for such early termination is: (b) We may terminate this lease before the end of the lease term under the following conditions: Upon such termination we shall be entitled to the following charge(s) for: (c) To the extent these charges take into account the value of the vehicle at termination, if you disagree with the value we assign to the vehicle, you may obtain, at your own expense, from an independent third party agreeable to both of us, a professional appraisal of the value of the leased vehicle which could be realized at sale. The appraised value shall then be used as the actual value. Security Interest. We reserve a security interest of the following type in the property listed below to secure performance of your obligations under this lease: Late Payments. The charge for late payments is: Option to Purchase Leased Property Prior to the End of the Lease. [You have an option to purchase the leased vehicle prior to the end of the term. The price will be [$ /[the method of determining the price].] [You do not have an option to purchase the leased vehicle.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1029 Appendix A-3 Model Furniture Lease Disclosures Federal Consumer Leasing Act Disclosures Date Lessor(s) Lessee(s) Description of Leased Property Item Color Stock # Mfg. Quantity Amount Due at Lease Signing Monthly Payments Other Charges (not part of Total of Payments your monthly payment) (The amount you First monthly payment $ Your first monthly payment of $ will have paid by Refundable security deposit $ is due on , followed by Pick-up fee $ the end of the lease) Delivery/Installation fee $ payments of $ due on $ the of each month. The total of your Total $ Total monthly payments is $ Purchase Option at End of Lease Term. [You have an option to purchase the leased property at the end of the lease term for $ [and a purchase option fee of $ ].] [You do not have an option to purchase the leased property at the end of the lease term.] Other Important Terms. See your lease documents for additional information on early termination, purchase options and maintenance responsibilities, warranties, late and default charges, insurance, and any security interest, if applicable. [The following provisions are the nonsegregated disclosures required under Regulation M.] Official Fees and Taxes. The total amount you will pay for official fees, and taxes over the term of your lease, whether included with your monthly payments or assessed otherwise: $ . Insurance. The following types and amounts of insurance will be acquired in connection with this lease: We (lessor) will provide the insurance coverage quoted above for a total premium cost of $ . You (lessee) agree to provide insurance coverage in the amount and types indicated above. Standards for Wear and Use. The following standards are applicable for determining unreasonable or excess wear and use of the leased property: Maintenance. [You are responsible for the following maintenance and servicing of the leased property: .] [We are responsible for the following maintenance and servicing of the leased property: : .] Warranties. The leased property is subject to the following express warranties: Early Termination and Default, (a) You may terminate this lease before the end of the lease term under the following conditions: The charge for such early termination is: . (b) We may terminate this lease before the end of the lease term under the following conditions: . Upon such termination we shall be entitled to the following charge(s) for: . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1030 Federal Reserve Bulletin • November 1996 Appendix A-3 Model Furniture Lease Disclosures Page 2 of 2 Early Termination and Default, (continued) (c) To the extent these charges take into account the value of the leased property at termination, if you disagree with the value we assign to the property, you may obtain, at your own expense, from an independent third party agreeable to both of us, a professional appraisal of the value of the property which could be realized at sale. The appraised value shall then be used as the actual value. Security Interest. We reserve a security interest of the following type in the property listed below to secure performance of your obligations under this lease: Late Payments. The charge for late payments is: . Purchase Option Prior to the End of the Lease Term. [You have an option to purchase the leased property prior to the end of the term. The price will be [$ ]/the method of determining the price].] [You do not have an option to purchase the leased property.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1031 APPENDIX B TO PART 213—FEDERAL ENFORCEMENT APPENDIX C TO PART 213—ISSUANCE OF STAFF AGENCIES INTERPRETATIONS Officials in the Board's Division of Consumer and Commu- The following list indicates which federal agency enforces nity Affairs are authorized to issue official staff interpreta- Regulation M (12 C.F.R. Part 213) for particular classes of tions of this Regulation M (12 C.F.R. Part 213). These business. Any questions concerning compliance by a parinterpretations provide the formal protection afforded unticular business should be directed to the appropriate ender section 130(f) of the act. Except in unusual circumforcement agency. Terms that are not defined in the Federal stances, interpretations will not be issued separately but Deposit Insurance Act (12U.S.C. 1813(s» shall have the will be incorporated in an official commentary to Regulameaning given to them in the International Banking Act of tion M (Supplement I of this part), which will be amended 1978 (12 U.S.C. 3101). periodically. No staff interpretations will be issued approv- 1. National banks and federal branches and federal agening lessor's forms, statements, or calculation tools or methcies of foreign banks ods. District office of the Office of the Comptroller of the 4. The Supplement to Part 213 is amended by revising the Currency for the district in which the institution is heading to read as follows: located. 2. State member banks, branches and agencies of foreign Supplement I to Part 213—Official Staff banks (other than federal branches, federal agencies, and Commentary to Regulation M insured state branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the FINAL RULE—AMENDMENT TO REGULATION Z Federal Reserve Act Federal Reserve Bank serving the District in which the The Board of Governors is amending 12 C.F.R. Part 226, institution is located. its Regulation Z (Truth in Lending). The revisions imple- 3. Nonmember insured banks and insured state branches of ment the Truth in Lending Act Amendments of 1995, foreign banks which establish new creditor-liability rules for closed-end Federal Deposit Insurance Corporation Regional Direc- loans secured by real property or dwellings and consumtor for the region in which the institution is located. mated on or after September 30, 1995. The 1995 Amend- 4. Savings institutions insured under the Savings Associa- ments create several tolerances for accuracy in disclosing tion Insurance Fund of the FDIC and federally chartered the amount of the finance charge, and creditors have no savings banks insured under the Bank Insurance Fund of civil or administrative liability if the finance charge and the FDIC (but not including state-chartered savings banks affected disclosures are within the applicable tolerances. insured under the Bank Insurance Fund) The amendments also clarify how lenders must disclose Office of Thrift Supervision regional director for the certain fees connected with mortgage loans. In addition, region in which the institution is located. the Board is publishing a new rule regarding the treatment 5. Federal credit unions of fees charged in connection with debt cancellation agree- Regional office of the National Credit Union Administra- ments, which is similar to the existing rule for credit tion serving the area in which the federal credit union is insurance premiums and provides for more uniform treatlocated. ment of these fees. 6. Air carriers Effective October 21, 1996, 12 C.F.R. Part 226 is Assistant General Counsel for Aviation Enforcement amended as follows: and Proceedings, Department of Transportation, 400 Seventh Street, S.W., Washington, DC 20590 Part 226—Truth in Lending (Regulation Z) 7. Those subject to Packers and Stockyards Act Nearest Packers and Stockyards Administration area su- 1. The authority citation for Part 226 continues to read as pervisor. follows: 8. Federal Land Banks, Federal Land Bank Associations, Federal Intermediate Credit Banks, and Production Credit Authority. 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5). Associations Farm Credit Administration, 490 L'Enfant Plaza, S.W., 2. Section 226.2 is amended by revising paragraph (a)(6) to Washington, DC 20578 read as follows: 9. All other lessors (lessors operating on a local or regional basis should use the address of the FTC regional Section 226.2—Definitions and rules of office in which they operate) construction. Division of Credit Practices, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC (a) Definitions. * * * 20580 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1032 Federal Reserve Bulletin • November 1996 (6) Business day means a day on which the creditor's require the consumer to use a mortgage broker and even offices are open to the public for carrying on substan- if the creditor does not retain any portion of the charge. tially all of its business functions. However, for purposes (b) Example of finance charge * * * of rescission under sections 226.15 and 226.23, and for purposes of section 226.31, the term means all calendar days except Sundays and the legal public holidays spec- (10) Debt cancellation fees. Charges or premiums paid ified in 5 U.S.C. 6103(a), such as New Year's Day, the for debt cancellation coverage written in connection Birthday of Martin Luther King, Jr., Washington's Birth- with a credit transaction, whether or not the debt cancelday, Memorial Day, Independence Day, Labor Day, Co- lation coverage is insurance under applicable law. lumbus Day, Veterans Day, Thanksgiving Day, and (c) Charges excluded from the finance charge. * * * Christmas Day. (7) Real-estate related fees. The following fees in a 3. Section 226.4 is amended as follows: transaction secured by real property or in a residential a. Paragraph (a) is revised; mortgage transaction, if the fees are bona fide and reab. New paragraph (b)(10) is added; sonable in amount: c. A heading is added to paragraph (c)(7), the introductory text to paragraph (c)(7) is republished, paragraphs (c)(7)(ii) and (c)(7)(iii) are revised, paragraph (c)(7)(iv) (ii) Fees for preparing loan-related documents, such is redesignated as paragraph (c)(7)(v) and republished, as deeds, mortgages, and reconveyance or settlement and a new paragraph (c)(7)(iv) is added; documents. d. The paragraph (d) heading is revised, the para- (iii) Notary and credit report fees. graph (d)(1) heading and introductory text are revised, (iv) Property appraisal fees or fees for inspections to paragraph (d)(l)(i) is revised, and a new paragraph assess the value or condition of the property if the (d)(3) is added. service is performed prior to closing, including fees e. A new paragraph (e)(3) is added. related to pest infestation or flood hazard determina- The revisions and additions are to read as follows: tions. (v) Amounts required to be paid into escrow or trustee accounts if the amounts would not otherwise be in- Section 226.4—Finance charge. cluded in the finance charge. (a) Definition. The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable (d) Insurance and debt cancellation coverage. (1) Volundirectly or indirectly by the consumer and imposed directly tary credit insurance premiums. Premiums for credit life, or indirectly by the creditor as an incident to or a condition accident, health or loss-of-income insurance may be exof the extension of credit. It does not include any charge of cluded from the finance charge if the following conditions a type payable in a comparable cash transaction. are met: (1) Charges by third parties. The finance charge in- (i) The insurance coverage is not required by the cludes fees and amounts charged by someone other than creditor, and this fact is disclosed in writing. the creditor, unless otherwise excluded under this section, if the creditor: (i) Requires the use of a third party as a condition of (3) Voluntary debt cancellation fees, (i) Charges or preor an incident to the extension of credit, even if the miums paid for debt cancellation coverage of the type consumer can choose the third party; or specified in paragraph (d)(3)(ii) of this section may be (ii) Retains a portion of the third-party charge, to the excluded from the finance charge, whether or not the extent of the portion retained. coverage is insurance, if the following conditions are (2) Special rule; closing agent charges. Fees charged by met: a third party that conducts the loan closing (such as a (A) The debt cancellation agreement or coverage is settlement agent, attorney, or escrow or title company) not required by the creditor, and this fact is disare finance charges only if the creditor: closed in writing; (i) Requires the particular services for which the con- (B) The fee or premium for the initial term of sumer is charged; coverage is disclosed. If the term of coverage is less (ii) Requires the imposition of the charge; or than the term of the credit transaction, the term of (iii) Retains a portion of the third-party charge, to the coverage also shall be disclosed. The fee or preextent of the portion retained. mium may be disclosed on a unit-cost basis only in (3) Special rule; mortgage broker fees. Fees charged by open-end credit transactions, closed-end credit a mortgage broker (including fees paid by the consumer transactions by mail or telephone under secdirectly to the broker or to the creditor for delivery to the tion 226.17(g), and certain closed-end credit transbroker) are finance charges even if the creditor does not actions involving a debt cancellation agreement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1033 that limits the total amount of indebtedness subject and a subsequent event makes them inaccurate, the creditor to coverage; shall disclose before consummation:39 (C) The consumer signs or initials an affirmative (1) Any changed term unless the term was based on an written request for coverage after receiving the estimate in accordance with section 226.17(c)(2) and disclosures specified in this paragraph. Any con- was labelled an estimate; sumer in the transaction may sign or initial the (2) All changed terms, if the annual percentage rate at request. the time of consummation varies from the annual per- (ii) Paragraph(d)(3)(i) of this section applies to fees centage rate disclosed earlier by more than 1/8 of paid for debt cancellation coverage that provides for 1 percentage point in a regular transaction, or more than cancellation of all or part of the debtor's liability for 1/4 of 1 percentage point in an irregular transaction, as amounts exceeding the value of the collateral securing defined in section 226.22(a). the obligation, or in the event of the loss of life, health, or income or in case of accident. (e) Certain security interest charges. * * * 5. Section 226.18 is amended as follows: a. Footnote 41 in paragraph (d) is removed and paragraph (d) introductory text is republished; (3) Taxes on security instruments. Any tax levied on b. New paragraphs (d)(1) and (d)(2) are added; security instruments or on documents evidencing indebt- c. Footnotes 39 and 40 in paragraph (c) are redesignated edness if the payment of such taxes is a requirement for as footnotes 40 and 41 respectively; and recording the instrument securing the evidence of indebt- d. Paragraph (n) is revised. edness. The revisions and additions are to read as follows: Section 226.18—Content of disclosures. 4. Section 226.17 is amended as follows: a. In paragraph (a)(1), footnote 38 is revised; b. Paragraph (c)(2) is redesignated as paragraph (c)(2)(i) (d) Finance charge. The finance charge, using that term, and revised, and paragraph (c)(2)(ii) is added; and a brief description such as "the dollar amount the c. Paragraph (f) is revised. credit will cost you." The revisions and additions are to read as follows: (1) Mortgage loans. In a transaction secured by real property or a dwelling, the disclosed finance charge and Section 226.17—General disclosure requirements. other disclosures affected by the disclosed finance charge (including the amount financed and the annual percent- (a) Form of disclosures. (1)***38*** age rate) shall be treated as accurate if the amount disclosed as the finance charge: (i) Is understated by no more than $100; or (c) Basis of disclosures and use of estimates. * * * (ii) Is greater than the amount required to be dis- (2)(i) If any information necessary for an accurate disclosed. closure is unknown to the creditor, the creditor shall (2) Other credit. In any other transaction, the amount make the disclosure based on the best information disclosed as the finance charge shall be treated as accureasonably available at the time the disclosure is prorate if, in a transaction involving an amount financed of vided to the consumer, and shall state clearly that the $1,000 or less, it is not more than $5 above or below the disclosure is an estimate. amount required to be disclosed; or, in a transaction (ii) For a transaction in which a portion of the interest involving an amount financed of more than $1,000, it is is determined on a per-diem basis and collected at not more than $10 above or below the amount required consummation, any disclosure affected by the perto be disclosed. diem interest shall be considered accurate if the disclosure is based on the information known to the creditor at the time that the disclosure documents are (n) Insurance and debt cancellation. The items required by prepared for consummation of the transaction. section 226.4(d) in order to exclude certain insurance premiums and debt cancellation fees from the finance charge. (f) Early disclosures. If disclosures required by this subpart are given before the date of consummation of a transaction 38. The following disclosures may be made together with or separately from other required disclosures: the creditor's identity 39. The following disclosures may be made together with or sepaunder section 226.18(a), the variable rate example under sec- rately from other required disclosures: the creditor's identity under tion 226.18(f)(4), insurance or debt cancellation under sec- section 226.18(a), the variable rate example under section tion 226.18(n), and certain security interest charges under 226.18(f)(4), insurance or debt cancellation under section 226.18(n), section 226.18(o). and certain security interest charges under section 226.18(o). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1034 Federal Reserve Bulletin • November 1996 6. Section 226.19 is amended by revising paragraph (a)(2) but it is closer to the actual annual percentage rate to read as follows: than the rate that would be considered accurate under paragraph (a)(4) of this section. Section 226.19—Certain residential mortgage and variable-rate transactions. 8. Section 226.23 is amended as follows: a. Paragraphs (b)(1) through (b)(5) are redesignated as paragraphs (b)(l)(i) through (b)(l)(v); % ^ b. Introductory text of paragraph (b) is redesignated as (2) Redisclosure required. If the annual percentage rate paragraph (b)(1) and republished; at the time of consummation varies from the annual c. A new paragraph (b)(2) is added; and percentage rate disclosed earlier by more than 1/8 of d. New paragraphs (g) and (h) are added. 1 percentage point in a regular transaction or more than The revisions and additions are to read as follows: 1/4 of 1 percentage point in an irregular transaction, as defined in section 226.22, the creditor shall disclose all the changed terms no later than consummation or settle- Section 226.23—Right of rescission. ment. (b)(1) Notice of right to rescind. In a transaction subject to 7. Section 226.22 is amended by adding new paragraphs rescission, a creditor shall deliver two copies of the (a)(4) and (a)(5) to read as follows: notice of the right to rescind to each consumer entitled to rescind. The notice shall be on a separate document that identifies the transaction and shall clearly and conspicuously disclose the following: Section 226.22—Determination of annual (i) The retention or acquisition of a security interest in percentage rate. the consumer's principal dwelling. (ii) The consumer's right to rescind the transaction. (a) Accuracy of annual percentage rate. * * * (iii) How to exercise the right to rescind, with a form for that purpose, designating the address of the creditor's place of business. (4) Mortgage loans. If the annual percentage rate dis- (iv) The effects of rescission, as described in paraclosed in a transaction secured by real property or a graph (d) of this section. dwelling varies from the actual rate determined in accor- (v) The date the rescission period expires. dance with paragraph (a)(1) of this section, in addition to (2) Proper form of notice. To satisfy the disclosure the tolerances applicable under paragraphs (a)(2) and (3) requirements of paragraph (b)(1) of this section, the of this section, the disclosed annual percentage rate shall creditor shall provide the appropriate model form in also be considered accurate if: Appendix H of this part or a substantially similar notice. (i) The rate results from the disclosed finance charge; and (ii)(A) The disclosed finance charge would be consid- (g) Tolerances for accuracy. (1) One-half of 1 percent ered accurate under section 226.18(d)(1); or tolerance. Except as provided in paragraphs (g)(2) (B) For purposes of rescission, if the disclosed and (h)(2) of this section, the finance charge and other finance charge would be considered accurate under disclosures affected by the finance charge (such as the section 226.23(g) or (h), whichever applies. amount financed and the annual percentage rate) shall be (5) Additional tolerance for mortgage loans. In a trans- considered accurate for purposes of this section if the action secured by real property or a dwelling, in addition disclosed finance charge: to the tolerances applicable under paragraphs (a)(2) and (i) Is understated by no more than 1/2 of 1 percent of (3) of this section, if the disclosed finance charge is the face amount of the note or $100, whichever is calculated incorrectly but is considered accurate under greater; or section 226.18(d)(1) or section 226.23(g) or (h), the (ii) Is greater than the amount required to be disdisclosed annual percentage rate shall be considered closed. accurate: (2) One percent tolerance. In a refinancing of a residen- (i) If the disclosed finance charge is understated, and tial mortgage transaction with a new creditor (other than the disclosed annual percentage rate is also under- a transaction covered by section 226.32), if there is no stated but it is closer to the actual annual percentage new advance and no consolidation of existing loans, the rate than the rate that would be considered accurate finance charge and other disclosures affected by the under paragraph (a)(4) of this section; finance charge (such as the amount financed and the (ii) If the disclosed finance charge is overstated, and annual percentage rate) shall be considered accurate for the disclosed annual percentage rate is also overstated purposes of this section if the disclosed finance charge: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1035 (i) Is understated by no more than 1 percent of the 10. In Part 226, Appendix H is amended by revising the face amount of the note or $100, whichever is greater; H-9 Rescission Model Form and the contents listing at the or beginning of Appendix H to read as follows: (ii) Is greater than the amount required to be disclosed. (h) Special rules for foreclosures. (1) Right to rescind. After the initiation of foreclosure on the consumer's APPENDIX H TO PART 226—CLOSED END MODEL principal dwelling that secures the credit obligation, the FORMS AND CLAUSES consumer shall have the right to rescind the transaction H-l—Credit Sale Model Form (section 226.18) if: H-2—Loan Model Form (section 226.18) (i) A mortgage broker fee that should have been H-3—Amount Financed Itemization Model Form (section included in the finance charge was not included; or 226.18(c)) (ii) The creditor did not provide the properly com- H-4(A)—Variable-Rate Model Clauses (section pleted appropriate model form in Appendix H of this 226.18(f)(1)) part, or a substantially similar notice of rescission. H-4(B)—Variable-Rate Model Clauses (section (2) Tolerance for disclosures. After the initiation of 226.18(f)(2)) foreclosure on the consumer's principal dwelling that H-4(C)—Variable-Rate Model Clauses (section 226.19(b)) secures the credit obligation, the finance charge and H-4(D)—Variable-Rate Model Clauses (section 226.20(c)) other disclosures affected by the finance charge (such as H-5—Demand Feature Model Clauses (section 226.18(1)) the amount financed and the annual percentage rate) H-6—Assumption Policy Model Clause (section shall be considered accurate for purposes of this section 226.18(q)) if the disclosed finance charge: H-7—Required Deposit Model Clause (section 226.18(r)) (i) Is understated by no more than $35; or H-8—Rescission Model Form (General) (section 226.23) (ii) Is greater than the amount required to be dis- H-9—Rescission Model Form (Refinancing With Original closed. Creditor) (section 226.23) 9. Section 226.31 is amended by revising paragraphs (d) H-10—Credit Sale Sample and (g) to read as follows: H-l 1—Installment Loan Sample H-l2—Refinancing Sample H-l3—Mortgage with Demand Feature Sample Section 226.31—General rules. H-14—Variable-Rate Mortgage Sample (section 226.19(b)) H-l5—Graduated Payment Mortgage Sample (d) Basis of disclosures and use of estimates. (1) Legal H-16—Mortgage Sample (section 226.32) Obligation. Disclosures shall reflect the terms of the legal obligation between the parties. (2) Estimates. If any information necessary for an accu- H-9—Rescission Model Form (Refinancing with Original rate disclosure is unknown to the creditor, the creditor Creditor) shall make the disclosure based on the best information reasonably available at the time the disclosure is pro- NOTICE OF RIGHT TO CANCEL vided, and shall state clearly that the disclosure is an estimate. Your Right to Cancel (3) Per-diem interest. For a transaction in which a por- You are entering into a new transaction to increase the tion of the interest is determined on a per-diem basis and amount of credit previously provided to you. Your home is collected at consummation, any disclosure affected by the security for this new transaction. You have a legal right the per-diem interest shall be considered accurate if the under federal law to cancel this new transaction, without disclosure is based on the information known to the cost, within three business days from whichever of the creditor at the time that the disclosure documents are following events occurs last: prepared. (1) The date of this new transaction, which is ; or (2) The date you received your new Truth in Lending (g) Accuracy of annual percentage rate. For purposes of disclosures; or section 226.32, the annual percentage rate shall be consid- (3) The date you received this notice of your right to ered accurate, and may be used in determining whether a cancel. transaction is covered by section 226.32, if it is accurate If you cancel this new transaction, it will not afFect any according to the requirements and within the tolerances amount that you presently owe. Your home is the security under section 226.22. The finance charge tolerances for for that amount. Within 20 calendar days after we receive rescission under section 226.23(g) or (h) shall not apply for your notice of cancellation of this new transaction, we this purpose. must take the steps necessary to reflect the fact that your Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1036 Federal Reserve Bulletin • November 1996 home does not secure the increase of credit. We must also 13. In Supplement I to Part 226, under Section 226.18— return any money you have given to us or anyone else in Content of Disclosures, under 18(d) Finance charge, paraconnection with this new transaction. graph 2 is removed. You may keep any money we have given you in this new 14. In Supplement I to Part 226, under Section 226.23— transaction until we have done the things mentioned above, Right of Rescission, under 23(b) Notice of right to rescind, but you must then offer to return the money at the address the first sentence of paragraph 3 is revised to read as below. If we do not take possession of the money within follows: 20 calendar days of your offer, you may keep it without further obligation. Section 226.23—Right of Rescission. How to Cancel 23(b) Notice of right to rescind If you decide to cancel this new transaction, you may do so by notifying us in writing, at 3. Content. The notice must include all of the information outlined in Section 226.23(b)(l)(i) through (v). * * * (creditor's name and business address). You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. Keep one ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT copy of this notice because it contains important information about your rights. Orders Issued Under Section 3 of the Bank Holding If you cancel by mail or telegram, you must send Company Act the notice no later than midnight of (date) (or midnight of the third busi- Valley View Bancshares, Inc. ness day following the latest of the three events listed Overland Park, Kansas above). If you send or deliver your written notice to cancel some Order Approving Application to Acquire Bank Holding other way, it must be delivered to the above address no Companies later than that time. Valley View Bancshares, Inc., Overland Park, Kansas ("Valley View"), a bank holding company within the / WISH TO CANCEL meaning of the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 3 of the BHC Act (12 U.S.C. § 1842) to acquire Industrial Banc- Consumer's Signature Date shares, Inc., and its subsidiary bank, Industrial State Bank ("Industrial Bank"), both of Kansas City, Kansas; Interna- 11. In Supplement I to Part 226, under Section 226.4— tional Bancshares, Inc., and its subsidiary bank, First Bank Finance Charge, under 4(a) Definition, paragraph 3. ii. is of Missouri ("First Bank"), both of Gladstone, Missouri; removed. Mission Bancshares, Inc., and its subsidiary bank, The 12. In Supplement I to Part 226, under Section 226.17— Mission Bank, both of Mission, Kansas; and One Security, General Disclosure Requirements, under 17(c) Basis of Inc., and its subsidiary bank, Security Bank ("Security disclosures and use of estimates, paragraph 17(c)(2) is Bank"), both of Kansas City, Kansas.1 redesignated as paragraph 17(c)(2)(i): Notice of the proposal, affording interested persons an opportunity to submit comments, has been published (61 Federal Register 31,526 (1996)). The time for filing Supplement I Official Staff Interpretation comments has expired, and the Board has considered the proposal and all comments received in light of the factors set forth in section 3 of the BHC Act. The Affiliated Companies, with total consolidated assets Section 226.17—General Disclosure Requirements of approximately $1.6 billion, operate four subsidiary 17(c) Basis of Disclosures and Use of Estimates 1. The bank holding companies involved in the proposal comprise the Morgan chain banking organization ("Affiliated Companies"), and the proposal represents a reorganization of the Affiliated Companies Paragraph 17(c)(2)(i). into a single bank holding company. On consummation of the proposal, Valley View would directly own all of the voting shares of the subsidiary banks currently owned by the Affiliated Companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1037 banks in Kansas and one subsidiary bank in Missouri.2 The Other Factors under the BHC Act Affiliated Companies are the fourth largest commercial banking organization in Kansas, controlling approximately The BHC Act also requires the Board to consider the $1.1 billion in deposits, representing 3.2 percent of total financial and managerial resources and future prospects of deposits in commercial banking organizations in the state.3 the companies and banks involved, as well as consider- The subsidiary bank of the Affiliated Companies in Mis- ations relating to the convenience and needs of the commusouri is the 51st largest commercial banking organization nity to be served and other supervisory factors. The Board in the state, controlling approximately $238 million in has carefully reviewed the financial and managerial redeposits, representing less than 1 percent of total deposits sources and future prospects of Valley View and the bank in commercial banking organizations in the state. holding companies to be acquired in light of all the facts of record, including relevant supervisory reports of examina- Interstate Analysis tion. The Board notes that Valley View is in satisfactory financial condition and would remain so after consumma- Section 3(d) of the BHC Act, as amended by the sec- tion of the proposal. In addition, reports of examination tion 101 of the Riegle-Neal Interstate Banking and Branch- assessing the managerial resources of Valley View and the ing Efficiency Act of 1994, allows the Board to approve an other bank holding companies indicate this factor is consisapplication by a bank holding company to acquire control tent with approval. Based on all the facts of record, the of a bank located in a state other than the home state of Board concludes that considerations related to the financial such bank holding company, if certain conditions are met. and managerial resources and future prospects of Valley For purposes of the BHC Act, the home state of Valley View and the bank holding companies to be acquired are View is Kansas, and Valley View would acquire a bank in consistent with approval, as are other supervisory factors Missouri.4 The conditions for an interstate acquisition un- the Board must consider. der section 3(d) are met in this case.5 In view of all the facts of record, the Board is permitted to approve the Convenience and Needs Factor proposal under section 3(d) of the BHC Act. The Board has long held that consideration of the conve- Competitive Considerations nience and needs factor includes a review of the records of the relevant depository institutions under the Community Section 3 of the BHC Act prohibits the Board from approv- Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). ing an application if the proposal would result in a monop- As provided in the CRA, the Board has evaluated this oly, or would substantially lessen competition in any rele- factor in light of examinations by the primary federal vant market unless such anticompetitive effects are clearly supervisory of the CRA performance record of the relevant outweighed in the public interest by the probable effects of institutions. the transaction in meeting the convenience and needs of An institution's most recent CRA performance evaluathe community to be served. As noted above, the proposal tion is a particularly important consideration in the applicarepresents a reorganization of the Affiliated Companies to tions process because it represents a detailed on-site evaluform a single bank holding company. Based on all the facts ation of an institution's overall record of performance of record, the Board concludes that consummation of the under the CRA by its primary federal supervisor.6 In addiproposal would not have any significantly adverse effects tion, the Board considers an institution's policies and pracon competition or the concentration of banking resources tices for compliance with applicable fair lending laws. The in any relevant banking market. Accordingly, the Board Board also has taken into account information on an insticoncludes that competitive considerations are consistent tution's lending activities that assist in meeting the credit with approval. needs of low- and moderate-income neighborhoods. The Board also has carefully considered comments from The Concerned Clergy Coalition ("Protestant"), which generally allege that the Affiliated Companies have failed 2. Asset data are as of June 30, 1996. 3. State deposit data are as of June 30, 1995. to include the inner cities of Kansas City, Kansas, and 4. Pub. L. No. 103-328, 108 Stat. 2338 (1994). A bank holding Kansas City, Missouri, within their delineated community company's home state is the state in which the operations of the bank or to assist in meeting the credit needs of these areas. In holding company's banking subsidiaries were principally conducted particular, Protestant alleges that Security Bank has foon July 1, 1966, or the date on which the company became a bank holding company, whichever is later. cused its lending efforts outside its delineated community, 5. See 12 U.S.C. § 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and engaged in insufficient residential and small business lend- (B). Valley View is adequately capitalized and adequately managed. Gladstone Bank has been in existence and continuously operated for the minimum period of time required under Missouri law. In addition, 6. The Statement of the Federal Financial Supervisory Agencies on consummation of the proposal, Valley View and its affiliates would Regarding the Community Reinvestment Act provides that a CRA control less than 10 percent of the total amount of deposits of insured examination is an important and often controlling factor in considerdepository institutions in the United States, and less than 13 percent of ation of an institution's CRA record and that reports of these examinathe total amount of deposits of insured depository institutions in tions will be given great weight in the applications process. See Missouri, as required by state law. 54 Federal Register 13,742, 13,745 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1038 Federal Reserve Bulletin • November 1996 ing activities, engaged in ineffective ascertainment and $18.9 million in its delineated community.11 Examiners marketing efforts, and provided inadequate branch facili- found the overall geographic distribution of the bank's ties.7 Protestant also alleges that Security Bank and Indus- credit extensions to be reasonable. trial Bank have failed to participate adequately in commu- Security Bank also significantly increased its community nity development programs serving their delineated development lending during the same period. In 1994, the community.8 bank funded five projects in the aggregate amount of Performance Examinations. All the subsidiary banks of $706,000, including $400,000 to rehabilitate a 28-unit lowthe Affiliated Companies have received "satisfactory" rat- income apartment complex. An additional $1.5 million was ings from their primary federal supervisors in their most committed to fund a low-income single family dwelling recent evaluations for CRA performance.9 In particular, development project. In 1995, the bank funded four Security Bank received a "satisfactory" rating from the projects in the aggregate amount of $2.7 million, including Federal Deposit Insurance Corporation ("FDIC") at its $2 million to help rehabilitate 217 low- and moderatemost recent examination as of April 1996 ("Security Ex- income apartment units in a 12-building complex, and amination"),10 and Industrial Bank received a "satisfacto- $550,000 to help develop 200 low- and moderate-income ry" rating for CRA performance from the FDIC as of housing units at the Quality Hill Apartments. During the September 1994 ("Industrial Examination"). first part of 1996, Security Bank states that it loaned Performance Record of Security Bank. The Security $4.9 million to nine redevelopment projects, including Examination noted that the bank focuses on commercial $3.1 million in bond financing to support the renovation of real estate and other commercial and industrial lending, the Twin Oaks apartments to create 600 low- and including a substantial number of loan participations moderate-income housing units. throughout its region. Consistent with Security Bank's Protestant criticizes the small number of housing-related business strategy, the bank primarily assists in meeting the loans reflected in the bank's data submitted under the credit needs of its community through direct loans to Home Mortgage Disclosure Act ("HMDA"). As previbusinesses and participation in the financing of larger hous- ously noted, Security Bank is primarily a commercial ing rehabilitation projects. For example, during 1994, 1995, lender and the HMDA data is consistent with its business and the first part of 1996, the bank made 153 commercial orientation. The Board also recognizes that HMDA data and real estate loans in the aggregate amount of alone provide an incomplete measure of an institution's lending in its community because these data cover only a few categories of housing-related lending and provide lim- 7. Protestant requests that the Board condition its approval of the ited information about the covered loans. The bank's proposal by requiring Valley View to implement several specific steps HMDA data, nevertheless, reflect positive efforts by Secuthat Protestant contends would improve the CRA performance of all rity Bank to assist in meeting the credit needs of all the banks involved in the proposal. These steps include: extending the members of its community. Between January 1994 and home mortgage purchase products of Valley View's subsidiary bank, Valley View State Bank, Overland Park, Kansas ("Valley View March 1996, loans were originated for 67 percent of the Bank"), to Security Bank and Industrial Bank; expanding home applications received from minority applicants and 64 permortgage, consumer, community development, and small business cent of the applications received from residents of low- and lending by Security Bank and Industrial Bank in their delineated moderate-income census tracts.12 During 1993 through community; establishing an additional full-service branch of Security 1995, the percentage of home mortgage applications that Bank in its delineated community; and extending the delineated communities of certain banks to include the inner city of Kansas City, Security Bank received from African-American applicants, Missouri. Hispanic applicants, and residents of low- and moderate- 8. Protestant criticizes Security Bank for its lack of involvement income census tracts generally exceeded that of lenders in with several government-sponsored and private community developthe market in the aggregate. The Security Examination ment programs that Protestant describes as being active in Security Bank's delineated community and supported by several other financial found no evidence of prohibited discriminatory practices or institutions. The Board notes that the CRA provides banks with any other practices designed to discourage loan applicasubstantial leeway in developing specific CRA-related policies and tions. programs and does not require participation in any particular type of Examiners also noted that three of Security Bank's five activity or program. offices were located in low- and moderate-income census 9. Protestant contends that Valley View Bank and First Bank, which serve suburban and other outlying areas of the Kansas City banking tracts and that their services and business hours appeared market, should extend their delineated communities under the CRA to to be sufficient to meet the needs of the local community. include the inner city of Kansas City, Missouri, and establish branches In 1995, Security Bank conducted a survey by mail of there. The most recent CRA examinations of all banks owned by the more than 2,400 deposit customers at all its facilities, and Affiliated Companies, including Valley View Bank and First Bank, found that the delineated community for each bank was reasonable and did not arbitrarily exclude low- and moderate-income areas. 10. Protestant criticizes the Security Examination and contends that 11. Protestant notes that the bank made only one or two Small the CRA performance of Security Bank is substantially unchanged Business Administration ("SBA") loans annually. Valley View states since it received a "needs to improve" rating at its examination in that Security Bank recently hired a loan officer with SBA lending September 1992. The FDIC has conducted two evaluations of Securi- experience and that the bank is developing a plan to become more ty's CRA performance since the 1992 examination, and both examina- active in SBA lending. tions (October 1993 and the Security Examination in 1996) have rated 12. During this period, Security Bank originated loans for the bank's performance as "satisfactory." 68 percent of the applications it received in the aggregate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1039 received 900 responses. Surveyed customers were asked Bank also has hired six bilingual employees to assist about the bank's lobby hours, locations, employee courtesy Hispanic customers. and personal service, and community involvement. More than 90 percent of respondents rated the bank excellent or Conclusion on Convenience and Needs Factor adequate overall. The Security Examination also found that the bank maintained an adequate branch closing policy. The Board has carefully considered the entire record in its The Security Examination found that Security Bank review of the convenience and needs factor under the BHC undertook reasonable efforts to ascertain the credit needs of Act. Based on all the facts of record, including information its entire community, especially through involvement in provided by Protestant and Valley View and CRA perforseveral civic organizations and an officer call program. mance examinations, the Board concludes that the efforts Examiners noted that marketing efforts included weekly of Valley View and the subsidiary banks of the Affiliated advertisements in several newspapers serving the local Companies to help meet the credit needs of all segments of community, including a bilingual newspaper serving His- the communities served, including low- and moderatepanic members of the community, and that the bank has income neighborhoods and minority residents, and the hired a bilingual employee at its main office to assist convenience and needs considerations, are consistent with Hispanic customers. Examiners also noted that the board of approval, and thus there is no need to require the condidirectors of the bank was adequately involved in the formu- tions suggested by Protestant. lation and monitoring of CRA programs and ensured the Based on all the facts of record, the Board has deterproper training of officers and employees. mined that this application should be, and hereby is, ap- Performance Record of Industrial Bank. Industrial Bank proved.14 The Board's approval is specifically conditioned also is primarily a commercial lender. Examiners reviewed on compliance by Valley View with all the commitments the geographic distribution of the bank's commercial, made in connection with this application. For the purpose housing-related and consumer loans, credit applications, of this action, the commitments and conditions relied on by and credit denial, and found that the distribution was the Board in reaching its decision are deemed to be condireasonable. For example, examiners found that 41 percent tions imposed in writing by the Board in connection with of all commercial loans and 70 percent of all consumer its findings and decision and, as such, may be enforced in loans that the bank had extended since the prior CRA proceedings under applicable law. examination were made within the bank's delineated com- The proposed acquisition of the other bank holding munity. Ninety-three percent of all home mortgage applica- companies in the Morgan Group shall not be consummated tions and 90 percent of the home mortgage loans originated before the fifteenth calendar day following the effective also were in the delineated community. Examiners also date of this order, and not later than three months after the found the bank's involvement with community develop- effective date of this order, unless such period is extended ment projects within its community to be adequate. In 1995 for good cause by the Board or by the Federal Reserve and the first part of 1996, the bank funded nine projects in Bank of Kansas City, acting pursuant to delegated authorthe aggregate amount of $1.2 million, including $550,000 ity. to help rehabilitate the Quality Hill apartment complex and By order of the Board of Governors, effective Septem- $448,000 for the development of a church-supported com- ber 16, 1996. munity center. The bank also loaned $84,000 and committed an additional $40,000 to individuals for the rehabilitation of low-income housing units. The Industrial Examination found no substantive violations of the fair lending laws or any other practices de- 14. Protestant has requested that the Board hold a public hearing or signed to discourage loan applications.13 Examiners found meeting to receive public testimony on the proposal. Section 3(b) of that the bank relied on direct contacts with government the BHC Act does not require the Board to hold a public hearing or meeting on an application unless the appropriate supervisory authority officials and community organizations, as well as calls on for the bank to be acquired makes a timely written recommendation of customers, to ascertain credit needs. Through its ascertaindenial of the application. In this case, the Board has received no such ment efforts, the bank financed a merger of the area's request. Under its rules, the Board may, in its discretion, hold a public largest minority-owned construction company and the pur- hearing or meeting on an application to clarify factual issues related to chase of equipment by another minority-owned firm. The the application and to provide an opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Board has carefully bank also determined through its ascertainment efforts that considered Protestant's request in light of all the facts of record. In the a need existed in its community for additional home im- Board's view, Protestant has had ample opportunity to submit its provement loans, and developed fixed-rate term loan and views and has, in fact, submitted substantial written materials that home equity loan products to address this need. Industrial have been considered by the Board in acting on the application. Protestant fails to demonstrate why its substantial written submissions do not adequately present its allegations or why a public hearing or meeting is otherwise warranted in this case. For these reasons, and based on all the facts of record, the Board has determined that a public 13. Examiners noted certain technical violations of fair lending hearing or meeting is not necessary to clarify the factual record in the laws, which they did not consider to reflect negatively on Industrial application, and is not warranted in this case. Accordingly, Protes- Bank's lending practices. tant's request for a public hearing or meeting is denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1040 Federal Reserve Bulletin • November 1996 Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and ment services to retail customers is closely related to Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. banking.5 In order to approve this notice, the Board must also JENNIFER J. JOHNSON consider whether the performance of the proposed activity Deputy Secretary of the Board by Cambridge is a proper incident to banking, that is whether the activity proposed "can reasonably be expected Orders Issued Under Section 4 of the Bank Holding to produce benefits to the public .. . that outweigh possible Company Act adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or Cambridge Bancorp unsound banking practices."6 As part of its evaluation of Cambridge, Massachusetts these factors, the Board considers the financial condition and managerial resources of the notificant and its subsidiar- Order Approving a Notice to Engage in Certain ies and the effect of the proposed transaction on these Investment Advisory Activities resources.7 Based on all the facts of record, including relevant reports of examination, the Board has concluded Cambridge Bancorp, Cambridge, Massachusetts ("Camthat financial and managerial considerations are consistent bridge"), a bank holding company within the meaning of with approval of the proposal. The Board also expects that the Bank Holding Company Act ("BHC Act"), has reconsummation of the proposal would result in greater quested the Board's approval under section 4(c)(8) of the competition in the market for retail-level discretionary BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of management services and provide added convenience and the Board's Regulation Y (12 C.F.R. 225.23) to expand services to retail customers. the investment advisory activities of its subsidiary, Cam- In the CNB Order, the Board relied on certain conditions bridge Investment Services of New Hampshire, Inc., Conand limitations to mitigate potential adverse effects, such as cord, New Hampshire ("Company"), to provide discretionconflicts of interests and customer confusion, that might ary investment management services to customers who do arise from the provision of discretionary management sernot qualify as institutional customers under Regulation Y.1 vices to retail customers. Cambridge has committed that Notice of the proposal, affording interested persons an Company will conduct the proposed activity under substanopportunity to submit comments, has been published tially the same limitations and conditions as those in the (61 Federal Register 41,415 (1996)). The time for filing CNB Order, as listed in Appendix A. comments has expired, and the Board has considered the Cambridge also has requested that it be permitted to notice and all comments received in light of the factors set advertise and market the availability of the services of forth in section 4(c)(8) of the BHC Act. Company through CTC's branches, including by making Cambridge, with total consolidated assets of $404.9 milreferrals and providing brochures and other literature, and lion, controls one commercial bank, Cambridge Trust to disclose the affiliation of Company with CTC. To miti- Company, Cambridge, Massachusetts ("CTC").2 Camgate the potential for customer confusion about the uninbridge recently established Company to engage in investsured nature of the investments made through Company ment advisory activities.3 Company has not yet comthat might result from such promotional activities, Cammenced operations, and it currently has an application bridge has stated that all brochures and advertisements of pending with the Securities and Exchange Commission for Company will contain the disclosures required in the Interregistration as an investment adviser under the Investment agency Statement on the Retail Sale of Nondeposit Invest- Advisers Act of 1940 (15 U.S.C. § 80b-l et seq.) ("Investment Products ("Interagency Statement"). Cambridge has ment Advisers Act"). Cambridge has committed that Comfurther committed that each client, before he or she enters pany will register under the Investment Advisers Act beinto an advisory relationship with Company, will receive a fore providing the proposed service. written disclosure that complies with the disclosure re- Section 4(c)(8) of the BHC Act provides that a bank quirements of the Interagency Statement. Thus, Cambridge holding company may engage, with Board approval, in any would disclose that Company is a separate entity from activity that the Board determines to be "so closely related CTC; that securities purchased through Company are not to banking or managing or controlling banks as to be a guaranteed by Company or CTC; that accounts of Comproper incident thereto."4 The Board previously has deterpany are not insured by the Federal Deposit Insurance mined that providing discretionary investment manage- Corporation ("FDIC"); and that assets invested with Company are subject to the risk of loss, including possible loss of the principal invested. 1. 12 C.F.R. 225.2(g). 2. Asset data are as of June 30, 1996. 5. See CNB Financial Corp., 82 Federal Reserve Bulletin 952 3. Cambridge previously received approval for Company to provide (1996) ("CNB Order"); CoreStates Financial Corp., 80 Federal investment advice to institutional customers. See 12 C.F.R. Reserve Bulletin 644 (1994). 225.25(b)(4)(iii). 6. 12 U.S.C. § 1843(c)(8). 4. 12 U.S.C. § 1843(c)(8). 7. See 12 C.F.R. 225.24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1041 Based on all the facts of record, the Board finds that the (4) Company, Cambridge, and affiliates of Cambridge public benefits of Cambridge's proposed activity outweigh will not share confidential information regarding their any likely adverse effects and, therefore, that the activity is respective customers without the customer's consent; a proper incident to banking for purposes of section 4(c)(8) (5) Company's offices will not be located in, located in of the BHC Act. the same building as, or geographically proximate, to Based on the foregoing and all the facts of record, the any branches of CTC; and Board has determined that the notice should be, and hereby (6) Referrals of retail customers to Company by CTC is, approved. Approval of this notice is specifically condi- will be made only by CTC trust department or senior tioned on compliance by Cambridge with the commitments management personnel. No such referrals will be made discussed in this order and all other commitments and without first providing the customer with written or oral representations made by Cambridge in connection with this disclosures of the distinct and separate identities of CTC notice. The Board's determination also is subject to all the and Company. Before entering into an advisory relationterms and conditions set forth in Regulation Y, including ship with Company, each retail customer will receive a those in sections 225.7 and 225.23(b) (12 C.F.R. 225.27 written disclosure that Company is a separate entity and 225.23(b)), and to the Board's authority to require from CTC; that securities purchased through Company such modification or termination of the activities of a bank are not insured by the FDIC or guaranteed by Company holding company or any of its subsidiaries as the Board or CTC; and that assets invested with Company are finds necessary to ensure compliance with, and to prevent subject to the risk of loss, including possible loss of the evasion of, the provisions of the BHC Act and the Board's principal invested. In addition, Cambridge, Company, regulations and orders thereunder. For purposes of this and CTC will otherwise comply with the Interagency transaction, the commitments and conditions agreed to by Statement on Retail Sales of Nondeposit Investment Cambridge shall be deemed to be conditions imposed in Products and its interpretations. writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings The Chase Manhattan Corporation under applicable law. New York, New York These activities shall not be commenced later than three months after the effective date of this order, unless such Mellon Bank Corporation period is extended for good cause by the Board or by the Pittsburgh, Pennsylvania Federal Reserve Bank of Boston pursuant to delegated authority. Order Approving Notice to Acquire Certain Trust-Related By order of the Board of Governors, effective Septem- Assets ber 30, 1996. The Chase Manhattan Corporation, New York, New York Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and ("Chase"), and Mellon Bank Corporation, Pittsburgh, Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. Pennsylvania ("Mellon"), bank holding companies within the meaning of the Bank Holding Company Act ("BHC JENNIFER J. JOHNSON Act"), have requested the Board's approval under sec- Deputy Secretary of the Board tion 4 of the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of the Board's Regulation Y (12 C.F.R. 225.23) to acquire indirectly assets related to the shareholder ser- Appendix A vice operations of Wells Fargo Bank, N.A., San Francisco, California, and its affiliated banks (collectively "Wells"), and thereby engage in trust-related services pursuant Cambridge has committed that it would comply with the to section 225.25(b)(3) of the Board's Regulation Y following conditions: (12 C.F.R. 225.25(b)(3). Chase and Mellon propose to (1) No investment transactions will be executed by Comacquire the Wells Fargo shareholder services assets through pany on behalf of retail customers through any broker their joint venture subsidiary, ChaseMellon Shareholder affiliated with Cambridge; Services, L.L.C., Ridgefield Park, New Jersey ("Chase/ (2) Company will not purchase, for discretionary invest- Mellon").1 ment advisory accounts, securities for which Cambridge Notice of this proposal, affording interested persons an or any of its affiliates acts as underwriter, dealer, distribopportunity to submit comments, has been published utor, or placement agent, other than obligations of the (61 Federal Register 42,615, 43,060 (1996)). The time for United States, unless directed to do so in writing by the filing comments has expired, and the Board has considered client prior to each such transaction and after disclosure the notice and all comments received in light of the factors of any such affiliated relationships involved in the transset forth in section 4(c)(8) of the BHC Act. action; (3) Fees charged by Company to its retail customers for its discretionary investment advisory services will not be 1. Chase and Mellon each own 50 percent of Chase/Mellon through based on the number of transactions executed; wholly owned subsidiaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1042 Federal Reserve Bulletin • November 1996 Chase, the largest commercial banking organization in review of confidential reports of examination prepared by the United States with total consolidated assets of approxi- the primary federal supervisors of the organizations assessmately $321.8 billion, operates banks in Delaware, Florida, ing the financial and managerial resources of these organi- New Jersey, New York, and Texas, and engages in a zations. Based on all the facts of record, the Board connumber of permissible activities nationwide.2 Mellon, with cludes that the financial and managerial resources of the total consolidated assets of $42.8 billion, is the 22d largest organizations involved in the proposal are consistent with commercial banking organization in the United States. approval.7 Mellon operates banking subsidiaries in Pennsylvania, Del- In evaluating the competitive effects of the proposal, the aware, Maryland, and New Jersey, and engages in a num- Board notes that Wells does not control a significant share ber of nonbanking activities nationwide. of the market for shareholder services and that the effect of the acquisition in the market for these services would be Proposed Trust-Related Activities small. In addition, the market for shareholder services is not highly concentrated and customers for these services The Board previously has determined that the provision of are sophisticated financial institutions with substantial barcertain shareholder services, including acting as a stock gaining power. Based on all the facts of record, the Board transfer and dividend disbursing agent and providing simi- concludes that consummation of the proposal would not lar custodial or agency services, may be performed by bank have a significantly adverse effect on competition in any holding companies pursuant to section 225.23(b)(3) of relevant market.8 Regulation Y.3 Chase/Mellon provides a full range of per- In reviewing the public interest factors in this case, the missible shareholder services pursuant to Regulation Y, Board also has carefully considered contentions by Protesand all of the Wells assets to be acquired in the proposal tant that the public benefits are not sufficient to outweigh relate to activities that are permissible for bank holding companies.4 reached in the Chemical/Chase Order on these issues. As explained in In considering this proposal, the Board also must deter- the Chemical/Chase Order, the Board concluded, on the basis of all mine whether the proposed activities are a proper incident the facts of record, that the proposal met the competitive, convenience to banking, that is, whether the proposal "can reasonably and needs, and other statutory factors the Board is required to consider and should be approved. Protestant's request that the Board reconsider be expected to produce benefits to the public, such as its decision in the Chemical/Chase merger has already been denied. greater convenience, increased competition, or gains in 7. Protestant alleges that the 1995 HMDA data for Chase indicate efficiency, that outweigh possible adverse effects, such as some disparities in the rate of denials and originations for housingundue concentration of resources, decreased or unfair com- related loans by racial groups, that Chase has made several misleading petition, conflicts of interests, or unsound banking prac- and inaccurate media announcements regarding branch closings, that tices."5 As part of its evaluation of these factors, the Board Chase has abandoned LMI areas through branch closings since the merger, and that Chase has not opened certain branches and automated has carefully reviewed the financial and managerial re- teller machines ("ATMs") in LMI areas identified in connection with sources of Chase and Mellon and their respective subsidiar- the Board's approval of the Chemical/Chase Order. Protestant also ies, and the effect the transaction would have on such maintains that other aspects of Chase's operations reflect adversely on resources in light of all the facts of record.6 This includes managerial considerations, including trading in unregistered copper futures by Chase Bank, problems with ATM services and billing errors in Chase's secured credit card program, and the departure of mid- and high-level management from Chase. The Board has reviewed all of 2. Asset data are as of June 30, 1996. these allegations in light of supervisory assessments of Chase's mana- 3. See State Street Boston Corporation, 81 Federal Reserve Bulletin gerial resources and Chase's adherence to fair lending and other laws, 1049 (1995). and updated information from Chase on its branch openings and 4. The shareholder services activities of Wells are set forth in the closings and ATM installations in LMI census tracts, including the Appendix. facilities discussed by Protestant. The Board notes that the merger of 5. 12 U.S.C. § 1843(c)(8). See 12 C.F.R. 225.24; see also The Fuji Chemical and Chase, which involved two of the largest domestic Bank, Limited, 75 Federal Reserve Bulletin 94 (1989); Bayerische banking organizations, was not consummated until July 14, 1996, and Vereinsbank AG, 73 Federal Reserve Bulletin 155 (1987). that Chase has already begun to implement the programs and policies 6. Inner City Press/Community on the Move, Bronx, New York discussed in the Chemical/Chase Order. The Board also notes that ("Protestant"), contends that the Board's order regarding the merger Chase has demonstrated that it has the managerial resources to conof The Chase Manhattan Corporation and Chemical Banking Corpora- duct the activities proposed in this case. tion, both of New York, New York, Chemical Banking Corporation, 8. Protestant maintains that the Board should consider the competi- 82 Federal Reserve Bulletin 239 (1996) ("Chemical/Chase Order"), tive effect of all business relationships between Mellon and Chase and misanalyzed and misinterpreted a number of issues raised by the reconsider the approval of the Chase/Mellon joint venture. In connecmerger of Chemical and Chase, including the potential anticompeti- tion with the formation of Chase/Mellon, both banking organizations tive effects of the merger, the impact of the announced branch closings made a number of commitments to address conflicts of interests and on low- and moderate-income ("LMI") communities and communi- other adverse effects that could result from a matrix of relationships ties with predominately minority populations, and the reliability of the between co-venturers. In particular, Chase and Mellon committed not data submitted under the Home Mortgage Disclosure Act ("HMDA") to solicit business on behalf of each other and represented that they relating to loans made through the New York City Partnership. In did not have or expect to have significant business relationships addition, Protestant argues that the availability of new information outside the joint venture. Chase and Mellon also committed to act on since the Chemical/Chase Order, including Chase's HMDA data for an arm's-length basis in deciding whether to extend credit to any 1995 and criticisms by the General Accounting Office of examiner fair co-venturer or co-venturer's competitor and not to take into account lending training and enforcement policies of the federal financial the fact that a potential borrower could be a competitor of Chase/ supervisory agencies, require the Board to reconsider the conclusions Mellon in deciding whether to extend credit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1043 the adverse effects of this proposal. The record indicates Appendix that the proposal would provide added convenience to the customers of Wells by continuing to provide them with Shareholder Services Activities of Wells shareholder services from a company committed to these activities. Moreover, the Board believes that there are (1) Maintaining the shareholder records, including name, public benefits derived from permitting capital markets to address, and number of shares owned, for its corporate operate so that bank holding companies may make potencustomers and ensuring that the corporation's sharetially profitable investments in nonbanking companies and holder list remains current. allocate their resources in the manner they believe is most (2) Preparing and mailing checks to dividend holders. efficient when these investments are consistent with the (3) Mailing quarterly and annual reports, "welcome relevant considerations under the BHC Act, as they are in letters" on behalf of the corporation to its new sharethis case. holders, and proxy materials for annual or special meet- For the reasons discussed in this order, the Board beings. lieves that the potential for adverse effects, if any, resulting (4) Mailing annual meeting materials to shareholders, from the transaction are negligible. The Board also contabulating votes for the various propositions on proxy cludes that, based on the considerations discussed above, statements, and serving as the Inspector of Election for the proposal can reasonably be expected to produce notaannual meetings (which may involve presenting the ble public benefits. Accordingly, based on all the facts of shareholder vote counts to the corporation's board of record, the Board has determined that consummation of the directors and shareholders at the annual meeting). proposal can reasonably be expected to produce public benefits that would outweigh any likely adverse effects (5) Canceling shares in the name of the transferor name under the proper incident to banking standard of section and issuing shares in the name of the acquirer pursuant 4(c)(8) of the BHC Act. to the sell or transfer of shares. (6) Providing shareholders information regarding endof-year tax reports, lost dividend checks, dividend rates, Conclusion dates of prior transfers of stock, procedures for transferring shares. (7) Facilitating the transfer of shares during the course of Based on the foregoing and all the facts of record, the corporate reorganizations by providing lists of the share- Board has determined that the notice should be, and hereby holders of the stock to be acquired, informing the shareis, approved. The Board's determination is subject to all holders (by mail) of the transaction and supplying them the terms and conditions set forth in the Board's Regulawith the instructions and forms to be used in tendering tion Y, including those in sections 225.7 and 225.23(g) their shares, processing the tendered shares and issuing (12 C.F.R. 225.7 and 225.23(g)), and to the Board's authorthe merger or acquisition compensation to the appropriity to require such modification or termination of the ate shareholders. activities of a bank holding company or any of its subsid- (8) Maintaining the shareholder records, including name, iaries as the Board finds necessary to assure compliance address, and number of shares owned, for the employee with, and to prevent evasion of, the provisions of the BHC stock option plans of its corporate customers. Act and the Board's regulations and orders issued thereun- (9) Examining shares and any corresponding legal docuder. The Board's approval is specifically conditioned on ments submitted in conjunction with the transfer of compliance with all the commitments made in connection shares containing legends on the back of the certificates with this proposal, including the commitments discussed in that denote certain restrictions on the sale or transfer of this order. These commitments and conditions shall be the shares. deemed to be conditions imposed in writing by the Board (10) Following the purchase activity of certain shares in connection with its findings and decision and, as such, and issuing reports detailing the names of purchasers, may be enforced in proceedings under applicable law. brokers used to purchase shares, and number of shares This transaction shall not be consummated later than purchased, to its corporate customers; three months following the effective date of this order, (11) Contacting shareholders on behalf of corporations, unless such period is extended for good cause by the Board to remind the shareholders to submit their vote or proxy or both the Federal Reserve Bank of New York and the for annual shareholder meetings or special shareholder Federal Reserve Bank of Cleveland acting pursuant to meetings; delegated authority. (12) Providing escheat services for abandoned property By order of the Board of Governors, effective Septem- {i.e., unclaimed dividends and shares of stock). ber 30, 1996. (13) Providing corporate customers with on-line inquiry access into Chase/Mellon's databases containing infor- Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. mation on the corporation's shareholders. (14) Performing various statistical analyses and generat- JENNIFER J. JOHNSON ing various reports concerning the corporation's share- Deputy Secretary of the Board holder base. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1044 Federal Reserve Bulletin • November 1996 (15) Maintaining separate databases of shares purchased (11) Trading for its own account in: through the dividend reinvestment plans ("DRP") or (i) Gold and silver bullion, bars, rounds, and coins employee stock purchase plans ("ESPP") for its corpo- ("precious metals"); and rate customers. (ii) Forwards, options, futures, and options on futures contracts for such precious metals for purposes of hedging positions in the underlying precious metals; National Westminster Bank Pic (12) Trading for its own account in foreign exchange London, England spot, forwards, futures, options, and options on futures contracts for purposes other than hedging; and Order Approving Notice to Engage in Certain (13) Acting as originator, principal, broker, agent, or Nonbanking Activities adviser to institutional customers with respect to interest rate and currency swaps and related swap derivative National Westminster Bank Pic, London, England ("Nat- products.1 West"), a foreign banking organization subject to the Bank Holding Company Act ("BHC Act"), has requested the Company would conduct these activities worldwide. Board's approval under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of the Board's Notice of this proposal, affording interested persons an Regulation Y (12 C.F.R. 225.23) to acquire Greenwich opportunity to submit comments, has been published Capital Holdings, Inc., Greenwich, Connecticut ("Compa- (61 Federal Register 41,161 (1996)). The time for filing ny"), and thereby engage in the following nonbanking comments has expired, and the Board has considered the activities: proposal and all comments received in light of the factors (1) Making, acquiring and servicing loans and other set forth in section 4(c)(8) of the BHC Act. extensions of credit, pursuant to section 225.25(b)(1) of NatWest, with total consolidated assets of approximately Regulation Y (12 C.F.R. 225.25(b)(1)); $257.8 billion, is the second largest banking organization (2) Providing investment and financial advisory ser- in England.2 In the United States, NatWest operates vices, pursuant to section 225.25(b)(4) of Regulation Y branches in New York, New York, and Chicago, Illinois, (12 C.F.R. 225.25(b)(4)); an agency in Los Angeles, California, and a representative (3) Leasing personal or real property or acting as agent, office in Houston, Texas. NatWest also controls several broker, or adviser in leasing such property, pursuant to subsidiaries that engage in various nonbanking activities in section 225.25(b)(5) of Regulation Y (12 C.F.R. the United States. 225.25(b)(5)); Company is a nonbanking company, currently owned by (4) Arranging commercial real estate equity financing, The Long-Term Credit Bank of Japan, Limited, Tokyo, pursuant to section 225.25(b)(14) of Regulation Y Japan, that engages in a variety of securities-related, advi- (12 C.F.R. 225.25(b)(14)); sory and other nonbanking activities worldwide. Compa- (5) Providing discount and full-service securities brokerny's principal subsidiary, Greenwich Capital Markets, Inc. age services, pursuant to section 225.25(b)(15) of Regu- ("GCM"), is, and will continue to be, a broker-dealer lation Y (12 C.F.R. 225.25(b)(15»; registered with the Securities and Exchange Commission (6) Underwriting and dealing in obligations of the United ("SEC") under the Securities Exchange Act of 1934 States, general obligations of states and their political (15 U.S.C. § 78a et seq.) and a member of the National subdivisions, and other obligations in which state mem- Association of Securities Dealers ("NASD"). In addition, ber banks may underwrite and deal under 12 U.S.C. GCM is, and will continue to be, registered as an FCM §§ 335 and 24(7) ("bank-eligible securities"), pursuant with the Commodity Futures Trading Commission to section 225.25(b)(16) of Regulation Y (12 C.F.R. ("CFTC") under the Commodity Exchange Act (7 U.S.C. 225.25(b)(16)); § 1 et seq.). Accordingly, GCM will be subject to the (7) Acting as a futures commission merchant ("FCM"), recordkeeping and reporting obligations, fiduciary stanpursuant to section 225.25(b)(18) of Regulation Y dards, and other requirements of the Securities Exchange (12 C.F.R. 225.25(b)(18»; Act, the Commodity Exchange Act, the SEC, CFTC, and (8) Providing investment advice on financial futures and NASD. options on futures, pursuant to section 225.25(b)(19) of Regulation Y (12 C.F.R. 225.25(b)(19)); Activities Approved by Regulation (9) Underwriting and dealing in, to a limited extent, certain municipal revenue bonds (including certain un- The Board previously has determined by regulation that rated and "private ownership" municipal revenue the proposed lending, investment and financial advisory, bonds), 1-4 family mortgage-related securities, consumer receivable-related securities, and commercial paper (collectively, "bank- ineligible securities"); 1. As used herein, the term "swap derivative products" means caps, (10) Acting as agent in the private placement of all types floors, collars, and options on swaps, caps, floors, and collars. of securities, and buying and selling all types of securi- 2. Asset and ranking data are as of December 31, 1995, and use ties on the order of customers as a "riskless principal"; exchange rates then in elFect. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1045 leasing, commercial real estate equity financing arranging, test and the prudential limitations established by the Board securities brokerage, bank-eligible underwriting and deal- in its Sanwa Order.7 ing, FCM, and futures advisory activities are so closely related to banking as to be a proper incident thereto within Private Placement and "Riskless Principal" Activities the meaning of section 4(c)(8) of the BHC Act.3 NatWest proposes to conduct these activities in accordance with the Private placement involves the placement of new issues of Board's regulations and prior Board decisions relating to securities with a limited number of sophisticated purchasthese activities.4 ers in a nonpublic offering. A financial intermediary in a private placement transaction acts solely as an agent of the Underwriting and Dealing in Bank-Ineligible Securities issuer in soliciting purchasers and does not purchase the securities and attempt to resell them. Securities that are The Board has determined that, subject to the prudential privately placed are not subject to the registration requireframework of limitations established in previous decisions ments of the Securities Act of 1933, and are offered only to to address the potential for conflicts of interests, unsound financially sophisticated institutions and individuals and banking practices, or other adverse effects, the proposed not to the public. Company will not privately place regisactivities of underwriting and dealing in bank-ineligible tered securities and will only place securities with customsecurities are so closely related to banking as to be a proper ers that qualify as accredited investors. incident thereto within the meaning of section 4(c)(8) of "Riskless principal" is the term used in the securities the BHC Act.5 NatWest has committed that Company will business to refer to a transaction in which a broker-dealer, conduct the proposed underwriting and dealing activities after receiving an order to buy (or sell) a security for a using the same methods and procedures and subject to the customer, purchases (or sells) the security for its own same prudential limitations established by the Board in the account to offset a contemporaneous sale to (or purchase Section 20 Orders. from) the customer.8 Riskless principal transactions are The Board also has determined that the conduct of these understood in the industry to include only transactions in securities underwriting and dealing activities is consistent the secondary market. Thus, Company would not act as a with section 20 of the Glass-Steagall Act (12 U.S.C. riskless principal in selling bank-ineligible securities at the § 377), provided that the company engaged in the under- order of a customer that is the issuer of the securities to be writing and dealing activities derives no more than sold, or in any transaction where Company has a contrac- 10 percent of its total gross revenue from underwriting and tual agreement to place the securities as agent of the issuer. dealing in bank-ineligible securities over any two-year Company also would not act as a riskless principal in any period. The Board subsequently modified that prudential transaction involving a bank-ineligible security for which it framework in the case of a foreign banking organization to or an affiliate makes a market. take into account principles of national treatment and the The Board has determined that, subject to the limitations Board's policy not to extend U.S. Bank supervisory stan- established by the Board in prior orders, the proposed dards extraterritorially.6 NatWest has committed that Com- private placement and riskless principal activities are so pany will conduct its underwriting and dealing activities in closely related to banking as to be a proper incident thereto bank-ineligible securities subject to the 10-percent revenue within the meaning of section 4(c)(8) of the BHC Act.9 The Board also has determined that acting as agent in the private placement of securities, and purchasing and selling 3. See 12 C.F.R. 225.25(b)(1), (4), (5), (14), (15), (16), (18), and securities on the order of investors as a riskless principal, (19). do not constitute underwriting and dealing in securities for 4. Because Company would provide investment advisory and bropurposes of section 20 of the Glass-Steagall Act, and that kerage services with respect to ineligible securities that it may hold as a principal, NatWest has committed that Company will inform its revenue derived from these activities is not subject to the customers at the commencement of the relationship that, as a general matter, it may be a principal or may be engaged in underwriting with respect to, or may purchase from an affiliate, those securities for which brokerage or advisory services are provided. In addition, NatWest has 7. The Board notes that lending to affiliates by U.S. branches and committed that the confirmations sent by Company to customers will agencies of foreign banks is not restricted by section 23A of the state whether Company acted as agent or as principal in the transac- Federal Reserve Act. In view of the limited nature of these activities, tion. See PNC Financial Corp, 75 Federal Reserve Bulletin 396 the Board does not believe that the record at this time would require (1989); Bankers Trust New York Company, 74 Federal Reserve Bulle- extending the restrictions of section 23A to NatWest's U.S. branches tin 695 (1988). and agencies. The Board, however, reserves the right to require that 5. See Citicorp, et al., 73 Federal Reserve Bulletin 473 (1987), aff'd NatWest's U.S. branches and agencies adhere to the restrictions of sub nom. Securities Industry Ass'n v. Board of Governors of the section 23A should circumstances change to make such a requirement Federal Reserve System, 839 F.2d 47 (2d Cir.), cert, denied, 486 U.S. appropriate. 1059 (1988); and Chemical New York Corporation, et al., 73 Federal 8. See SEC Rule 10b-10(a)(8)(i) (17 C.F.R. 240.10b-10(a)(8)(i)). Reserve Bulletin 731 (1987), as modified by Order Approving Modifi- The Board notes that GCM, as a registered broker-dealer, must concations to Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989) duct its riskless principal activities in accordance with the customer (collectively, "Section 20 Orders"). disclosure and other requirements of the federal securities laws. 6. The Sanwa Bank, Limited, 76 Federal Reserve Bulletin 568 9. See J.P. Morgan & Company Incorporated, 76 Federal Reserve (1990) ("Sanwa"); The Toronto-Dominion Bank, 76 Federal Reserve Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corpo- Bulletin 573 (1990). ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1046 Federal Reserve Bulletin • November 1996 10-percent revenue limitation on bank-ineligible securities related activities in accordance with the limitations underwriting and dealing.10 established by the Board.14 NatWest has committed that Company will conduct its private placement activities using the same methods and Swap Activities procedures and subject to the same prudential limitations as those established by the Board in Bankers Trust and J.P. NatWest proposes that Company act as originator, princi- Morgan,n including the comprehensive framework of re- pal, broker, agent, or adviser to institutional customers with strictions imposed by the Board in connection with under- respect to interest rate and currency swaps and related writing and dealing in bank-ineligible securities, which swap derivative products. The Board previously has deterwere designed to avoid potential conflicts of interests, mined that the proposed swap activities are closely related unsound banking practices, and other adverse effects. Nat- to banking and permissible for bank holding companies West also has committed that Company will conduct its under section 4(c)(8) of the BHC Act.15 NatWest has riskless principal activities subject to the limitations previ- committed that Company will conducts its swap activities ously established by the Board.12 in accordance with the limitations established by the Board in previous decisions.16 Precious Metal and Foreign Exchange Activities Proper Incident to Banking Standard NatWest proposes that Company trade for its own account in gold and silver bullion, bars, rounds, and coins, and In order to approve this proposal, the Board also must forwards, options, futures, and options on futures contracts determine that the proposed activities are a proper incident for such precious metals for purposes of hedging positions to banking, that is, that the proposal "can reasonably be in the underlying precious metals. NatWest also proposes expected to produce benefits to the public, such as greater that Company trade for its own account in foreign ex- convenience, increased competition, or gains in efficiency, change spot, forward, futures, options and options on fu- that outweigh possible adverse effects, such as undue contures transactions for purposes other than hedging. The centration of resources, decreased or unfair competition, Board previously has determined that the proposed pre- conflicts of interests, or unsound banking practices."17 cious metals activities are closely related to banking and As part of the Board's evaluation of these factors, the permissible for bank holding companies under sec- Board considers the financial and managerial resources of tion 4(c)(8) of the BHC Act.13 The Board also previously the notificant and its subsidiaries and the effect the transachas approved the proposed foreign exchange-related activ- tion would have on such resources.18 The Board notes that ities subject to certain limitations, and NatWest has com- NatWest's capital ratios satisfy applicable risk-based capimitted that Company will conduct its foreign exchange- tal standards established under the Basle Accord and are considered equivalent to the capital levels that would be required of a U.S. banking organization. The Board also 10. See Bankers Trust. has reviewed the capitalization of NatWest and Company 11. Among the prudential limitations discussed more fully in Bank- in accordance with the standards set forth in the Section 20 ers Trust and J.P. Morgan are that Company will not privately place Orders and finds the capitalization of each to be consistent open-end investment company securities or securities of investment companies that are advised by NatWest or any of its affiliates. In with approval. The determination of the capitalization of addition, Company will make no general solicitation or general adver- Company is based on all the facts of record, including tising for securities it places. NatWest's projections of the volume of Company's under- 12. See The Bank of New York Company, Inc., 82 Federal Reserve writing and dealing activities in bank-ineligible securities. Bulletin 748 (1996). Neither Company nor its affiliates will hold Based on all the facts of record, the Board concludes that themselves out as making a market in the bank-ineligible securities that Company buys and sells as riskless principal, or enter quotes for financial and managerial considerations are consistent with specific bank-ineligible securities in any dealer quotation system in approval of the proposal. connection with Company's riskless principal transactions, except that In considering the potential adverse effects of the pro- Company and its affiliates may enter bid or ask quotations, or publish posal, the Board has found that there is no evidence in the "offering wanted" or "bid wanted" notices on trading systems other than NASDAQ or an exchange, if Company or the affiliate does not enter price quotations on different sides of the market for a particular security for two business days. In other words, Company or its affiliate must wait at least two business days after entering a "bid" quote on a 14. See The Long-Term Credit Bank of Japan, Limited, 79 Federal security before entering an "ask" quote on the same security and vice Reserve Bulletin 347 (1993); The Hongkong and Shanghai Banking versa. Company will not act as riskless principal for registered invest- Corporation, 75 Federal Reserve Bulletin 217 (1989). ment company securities or for any securities of investment compa- 15. See The Long-Term Credit Bank of Japan, Limited, 79 Federal nies that are advised by NatWest or its affiliates. In addition, because Reserve Bulletin 345 (1993). Company proposes to provide riskless principal services in combina- 16. See C&S/Sovran Corporation, 76 Federal Reserve Bulletin 857 tion with investment advisory services, Company will conduct its (1990); The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin riskless principal activities in accordance with the limitations estab- 582 (1989). lished by the Board for the full-service brokerage activities of bank 17. 12 U.S.C. § 1843(c)(8). holding companies. See 12 C.F.R. 225.25(b)(15)(ii). 18. See 12 C.F.R. 225.24; see also The Fuji Bank, Limited, 13. See Midland Bank PLC, 76 Federal Reserve Bulletin 860 75 Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, (1990). 73 Federal Reserve Bulletin 155 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1047 record to indicate that consummation of the proposal would Board in connection with its findings and decisions, and result in any significantly adverse effects, such as undue may be enforced in proceedings under applicable law. concentration of resources, decreased or unfair competi- This transaction shall not be consummated later than tion, conflicts of interest, or unsound banking practices. In three months after the effective date of this order unless addition, the record indicates that there are numerous pro- such period is extended for good cause by the Board or the viders of these nonbanking services. Federal Reserve Bank of New York, acting pursuant to Based on the foregoing and all other facts of record, the delegated authority. Board has determined that under the framework and condi- By order of the Board of Governors, effective Septemtions established by the Board in this and prior decisions, ber 19, 1996. consummation of the proposal is not likely to result in significantly adverse effects, such as undue concentration Voting for this action: Chairman Greenspan and Governors Kelley, of resources, decreased or unfair competition, conflicts of Lindsey, Phillips, Yellen, and Meyer. Absent and not voting: Vice Chair Rivlin. interest, or unsound banking practices. The Board expects, moreover, that consummation of the proposal would pro- JENNIFER J. JOHNSON vide added convenience, a broader array of products, and Deputy Secretary of the Board improved services to NatWest's customers. The Board has determined, therefore, that the performance of the proposed activities by NatWest can reasonably be expected to Orders Issued Under Sections 3 and 4 of the Bank produce public benefits that outweigh possible adverse Holding Company Act effects under the proper incident to banking standard of section 4(c)(8) of the BHC Act. Grupo Financiero Banamex Accival, S.A. de C.V. Accordingly, and for the reasons set forth in this order Mexico City, Mexico and in the Section 20 Orders, the Board has concluded that NatWest's proposal to engage in the proposed activities is Banco National de Mexico, S.A. consistent with the Glass-Steagall Act, and that the pro- Mexico City, Mexico posed activities are so closely related to banking as to be proper incidents thereto within the meaning of sec- Banamex USA Bancorp tion 4(c)(8) of the BHC Act, provided that NatWest limits Los Angeles, California Company's activities as specified in this order and the Section 20 Orders. Order Approving the Formation of a Bank Holding On the basis of all the facts of record, the Board has Company and a Proposal to Engage in Certain determined to, and hereby does, approve this notice subject Securities Activities to all the terms and conditions discussed in this order and in the Section 20 Orders. The Board's approval of this Grupo Financiero Banamex Accival, S.A. de C.V., Mexico proposal extends only to activities conducted within the City, Mexico ("Banacci"), has requested the Board's aplimitations of those orders and this order, including the proval under section 3(a)(1) of the Bank Holding Company Board's reservation of authority to establish additional Act ("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a limitations to ensure that Company's activities are consisbank holding company within the meaning of the BHC Act tent with safety and soundness, avoiding conflicts of interthrough its ownership of 99.9 percent of the voting shares ests, and other relevant considerations under the BHC Act. of Banco National de Mexico, S.A., Mexico City, Mexico Underwriting and dealing in any manner other than as ("Banamex"), a foreign bank registered as a bank holding approved in this order and the Section 20 Orders is not company, and thereby to retain all the voting shares of authorized for Company. Banamex USA Bancorp, Los Angeles, California ("Ban- The Board's determination also is subject to all the terms corp"), and its subsidiary bank, California Commerce and conditions set forth in Regulation Y, including those in Bank ("CCB"), Los Angeles, California ("CCB").1 sections 225.7 and 225.23(g) (12 C.F.R. 225.7 and Banacci also has requested the Board's approval under 225.23(g)), and to the Board's authority to require modifisection 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) cation or termination of the activities of a bank holding and section 225.23 of the Board's Regulation Y (12 C.F.R. company or any of its subsidiaries as the Board finds 225.23) to retain indirectly all the voting shares of ACCI necessary to assure compliance with and to prevent eva- Securities, Inc, New York, New York ("ACCI"),2 and sion of the provisions of the BHC Act and the Board's regulations and orders issued thereunder. The Board's decision is specifically conditioned on compliance by NatWest 1. In 1991, Banacci acquired control of Banamex as part of the with all the commitments made in connection with this Mexico's privatization of its banking system. The shares of Bancorp notice, including the commitments discussed in this order were placed in a voting trust administered by an independent trustee until the Board could act on an application by Banacci under the BHC and the conditions set forth in the Board regulations and Act to retain indirect control of CCB. orders noted above. The commitments and conditions shall 2. Banacci acquired ACCI through its wholly owned subsidiary, be deemed to be conditions imposed in writing by the Acciones y Valores de Mexico, S.A. de C.V., Mexico City, Mexico, in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1048 Federal Reserve Bulletin • November 1996 thereby engage in the following securities-related activi- basis if the Board determines that its home country supervities: sor receives sufficient information on the foreign bank's (1) Providing full-service securities brokerage services, worldwide operations, including its relationship to any pursuant to section 225.25(b)(15) of Regulation Y affiliate, to assess the foreign bank's overall financial con- (12 C.F.R. 225.25(b)(15)); dition and compliance with law and regulation.7 (2) Acting as agent in the private placement of all types The National Banking and Securities Commission of securities; and ("CNBV"), an agency of the Ministry of Finance (3) Buying and selling all types of securities on the order ("MOF"), was formed in 1995 by combining Mexico's of customers as a "riskless principal." banking and securities supervisory authorities.8 CNBV functions as Banamex's primary home country supervisor Notice of the proposal, affording interested persons an and is responsible for enforcing Mexican banking and opportunity to submit comments, has been published securities laws.9 Since 1990, the CNBV has been substan- (57 Federal Register 1484 (1992); 59 Federal Register tially revising Mexico's banking supervisory framework 1400 (1994); 60 Federal Register 58,361 and 66,275 through the issuance of supervisory and regulatory require- (1995)). The time for filing comments has expired, and the ments that seek to ensure the safe and sound operations of Board has considered the application and notice and all Mexican banks. comments received in light of the factors set forth in Recently, many additional steps have been taken to sections 3 and 4 of the BHC Act. enhance the supervisory function. These include: Banamex, with total assets equivalent to approximately (1) Improvement in the quality of required regulatory $29 billion, is the largest commercial banking organization financial reporting; in Mexico.3 CCB is the 37th largest commercial banking (2) Strengthening the monitoring of banks' conditions organization in California, controlling deposits of by conducting annual on-site examinations that focus on $423.4 million, representing less than 1 percent of all risk management and management information systems; deposits in commercial banking organizations in the state.4 (3) Changes in the asset classification process and re- In addition to CCB, Banamex operates agencies in New lated loan loss reserve calculation to provide a better York, New York; Los Angeles, California; and Houston, assessment of asset quality; and Texas; and a representative office in Houston, Texas. (4) Promotion of a closer exchange of information with foreign supervisory authorities. Home Country Supervisory Considerations In addition, in 1994, CNBV entered into a Financial Tech- In order to approve an application involving a foreign bank nical Assistance Program with the World Bank to to acquire a U.S. bank or bank holding company, the BHC strengthen bank supervision. The program is intended to Act and Regulation Y require the Board to determine that the foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by its home country 7. In assessing this standard, the Board considers, among other supervisor.5 The Board also must determine that the for- factors, the extent to which the home country supervisor: (i) Ensures that the foreign bank has adequate procedures for eign bank has provided adequate assurances that it will monitoring and controlling its activities worldwide; make available to the Board such information on its opera- (ii) Obtains information on the condition of the foreign bank and tions and activities and those of its affiliates that the Board its subsidiaries and offices outside the home country through deems appropriate to determine and enforce compliance regular reports of examination, audit reports, or otherwise; with applicable law.6 (iii) Obtains information on the dealings and relationships between the foreign bank and its affiliates, both foreign and domes- The Board considers a foreign bank to be subject to tic; comprehensive supervision or regulation on a consolidated (iv) Receives from the foreign bank financial reports that are consolidated on a worldwide basis, or comparable information that permits analysis of the foreign bank's financial condition on a worldwide, consolidated basis; and September 1991. The North American Free Trade Agreement (v) Evaluates prudential standards, such as capital adequacy and ("NAFTA") permits a Mexican financial group formed before the risk asset exposure, on a worldwide basis. These are indicia of effective date of the NAFTA, like Banacci, which lawfully acquired a comprehensive, consolidated supervision. No single factor is Mexican bank and a Mexican securities firm that owns or controls a essential, and other elements may inform the Board's determina- United States securities company, to continue to engage in the securi- tion. 12 C.F.R. 211.24(c)(1). ties activities of the United States company as of the acquisition date, 8. References to CNBV before 1995 are intended to refer to the subject to certain restrictions, for up to five years from the acquisition previous banking supervisory agency, the National Banking Commisdate. sion. 3. Asset data are as of June 30, 1996. 9. CNBV also is the primary supervisor of Banacci's securities 4. State deposit and ranking data are as of June 30, 1995. subsidiaries and of the holding company itself. The bank also receives 5. See 12 U.S.C. § 1842(c)(3)(B); 12 C.F.R. 225.13(b)(5). The additional oversight by the MOF and the Bank of Mexico, the central Board received comments from Inner City Press/Community on the bank. The MOF is responsible for licensing commercial banking Move ("Protestant") asserting, without providing any substantiation, activities and regulates the structure and operation of financial groups that the supervision of Banacci and Banamex under Mexico's bank and certain aspects of banking and brokerage operations. The Bank of regulatory system was inconsistent with approval of the proposal. Mexico regulates foreign currency activities and acts as a reserve bank 6. See 12 U.S.C. § 1842(c)(3)(A); 12 C.F.R. 225.13(b)(4). and a treasurer for the federal government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1049 develop a modern regulatory and legal framework for sary consents or waivers that might be required from third financial institutions and groups operating in Mexico. parties for disclosure. In light of these commitments and CNBV obtains information on the operations of Bana- other facts of record, and subject to the condition described mex primarily through on-site examinations and periodic below, the Board concludes that Banacci and Banamex reports. CNBV conducts annual on-site full-scope exami- have provided adequate assurances of access to any necesnations of Mexican banks, which include a review of asset sary information the Board may request. quality, capital adequacy, liquidity, earnings, concentration of risks, and international banking operations. CNBV re- Other Factors under the BHC Act quires banks to submit numerous periodic reports on their worldwide operations, including daily balance sheets, The BHC Act also requires the Board to consider the weekly asset/liability positions, foreign currency asset and financial and managerial resources and future prospects of liability reports, and insider transaction reports.10 the companies and banks involved, the convenience and CNBV also receives reports prepared by external audi- needs of the community to be served, and certain other tors who generally conduct annual audits of Banamex's supervisory factors. subsidiaries and branches. The auditing firm is responsible for reviewing the bank's annual financial statements, in- A. Supervisory Factors cluding assessing the bank's asset quality and internal controls. The Board has carefully considered the financial and man- Mexican banks, including Banamex, are subject to cer- agerial resources and future prospects of Banacci, Banatain restrictions with respect to transactions with affiliates mex, CCB, and their subsidiaries, and other supervisory and investments in other companies. Loans to shareholders factors, in light of all the facts of record. Although there owning 1 percent or more of the bank's shares, to a board are differences between Mexican and U.S. accounting pracmember or board member's relative, or to certain other tices, Banamex's capital under Mexican generally accepted related parties must be approved by the bank's directors. In accounting practices exceeds the minimum standards in the addition, the loans must be reported to the CNBV. Total Basle Accord.11 Banamex's capital also is regarded as related party transactions may not exceed the bank's net equivalent to the capital that would be required of a U.S. capital. banking organization in the context of a nonexpansionary With respect to monitoring its worldwide operations, proposal to retain an existing subsidiary. Banamex's internal audit department conducts annual au- As a result of the devaluation of the Mexican peso in dits of its domestic and foreign offices. The audit reports 1994, however, the financial condition of Banamex has are reviewed by the CNBV during its examinations. experienced weaknesses, particularly in asset quality. The Based on all the facts of record, the Board concludes Board believes that a number of considerations mitigate that, for purposes of the BHC Act, Banamex is subject to the effect of Banamex's financial condition on this procomprehensive supervision on a consolidated basis by its posal.12 Banamex has controlled CCB for approximately home country supervisor. 18 years and has maintained its U.S. operations in overall The Board has reviewed the restrictions on disclosure of satisfactory financial condition. In addition, Banamex has information in certain jurisdictions where Banacci and participated in programs initiated by the government of Banamex operate and have communicated with the rele- Mexico that have slowed the growth of asset quality deterivant government authorities concerning access to informa- oration and improved its capital position. These programs tion. Banacci and Banamex have committed to make avail- include a debtor support program whereby certain loans able to the Board such information on their operations or are restructured at lower interest rates and a loan purchase/ activities and those of any of their affiliates that the Board recapitalization program whereby the government of Mexdeems necessary to determine and enforce compliance with ico purchases problem bank loans subject to a commitment the International Banking Act, the BHC Act, as amended, by private investors to raise new capital. Banacci has and other applicable federal law. To the extent that the provided a significant portion of the additional capital provision of such information to the Board may be prohib- raised by Banamex under this recapitalization requirement, ited or impeded by law, Banacci and Banamex have com- and generally has demonstrated an ability to serve as a mitted to cooperate with the Board in obtaining any neces- source of strength for its banking operations.13 The Board 10. CNBV is in the process of revising the accounting standards used by Mexican banks to make them more consistent with interna- 11. Mexican banks are required to maintain certain minimum capitional accounting standards. The changes are expected to improve the tal ratios. Although the calculation of the minimum ratios does not quality of disclosure in financial statements on asset quality, invest- compare directly with the methods used under the Basle Accord, the ments, capitalization, and earnings performance. In addition, consoli- ratios are calculated on a risk-based basis. Banamex currently is in dated financial statements will be required for the parent company and compliance with the Mexican risk-based capital requirements. all the parent company's financially related subsidiaries. Although the 12. Protestant notes that Banamex was rated "D+" for financial changes have not yet been made, the CNBV supplements its review of strength by Moody's Investors Service and questions whether Banacci the reports through the examination process and other techniques, has sufficient capital to serve as a source of strength for CCB. which allow an assessment of the consolidated condition of the 13. Under the loan purchase/recapitalization program, Banamex is organization. required to increase its capitalization by approximately $1.1 billion by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1050 Federal Reserve Bulletin • November 1996 notes, moreover, that Banamex's capital would not be tended to discourage applications for the types of credit diminished as a result of this proposal and that CCB listed in CCB's CRA statement.16 represents a small portion of Banamex's total assets.14 CCB is primarily an international wholesale bank that Based on these and all the facts of record, the Board does not directly originate long-term residential mortgage concludes that the supervisory factors under the BHC Act, or home improvement loans. The 1995 Examination, howincluding financial and managerial resources, are consis- ever, found that the bank assisted in meeting the credit tent with approval of the proposal. needs of its delineated communities by purchasing home mortgage loans and by providing mortgage warehouse B. Convenience and Needs Factor lines of credit to unaffiliated mortgage companies that are active lenders in the Veteran's Administration and Federal The Board has long held that consideration of the conve- Home Administration lending programs. In the first eight nience and needs factor includes a review of the records of months of 1995, CCB provided $4.6 million through those the relevant depository institutions under the Community mortgage lines of credit to finance the purchase of Reinvestment Act (12 U.S.C. § 2901 et seq. ) ("CRA"). 36 homes. Sixty-four percent of the homes were in low- to As provided in the CRA, the Board has evaluated this moderate-income census tracts, and 78 percent were purfactor in light of examinations by the primary federal chased by minority borrowers. Examiners also noted favorsupervisor of the CRA performance record of the relevant ably CCB's efforts to increase consumer lending to lowinstitution. and moderate-income and minority borrowers within its The Board also has carefully considered comments from delineated communities. Protestant maintaining that CCB has failed to assist in In addition, examiners found that, in the time since its meeting the credit needs of its delineated community and previous examinations, CCB had demonstrated an into comply with applicable fair lending laws. Protestant creased effort to ascertain its communities' credit needs, uses the less-than-satisfactory performance evaluations of which resulted in CCB's participation with several consor- CCB by its primary federal supervisor, the Federal Deposit tiums created to help meet the credit needs of low- to Insurance Corporation ("FDIC"), in 1993 and 1994 to moderate-income residents and businesses. For example, support its contentions. examiners noted that CCB had funded $962,000 of a After Protestant's comments were received, CCB re- $2.34 million line of credit to California Community Reinceived a rating of "satisfactory" from the FDIC in its most vestment Corporation, which provides long-term financing recent CRA performance evaluation, as of September 5, for multi-family housing for low- to moderate-income fam- 1995 ("1995 Examination"). The Board believes that an ilies in California. CCB also committed to invest in the institution's most recent CRA performance evaluation is a California Equity Fund 1995 Limited Partnership, a $75 particularly important consideration in the applications pro- million pooled fund to provide equity capital for the concess because it represents a detailed on-site evaluation of struction of approximately 900 affordable homes throughthe institutions overall record of performance under the out California in 1995 and 1996. Examiners noted that CRA by its primary federal supervisor.15 In addition, the CCB made a $50,000 equity investment in and a $408,000 Board considers an institution's policies and practices for line of credit commitment to the California Economic compliance with applicable fair lending laws and takes into Development Lending Initiative, a small business lending account information on lending activities that assist in consortium. In addition, CCB made a $40,000 equity inmeeting the credit needs of low- to moderate-income vestment in the Southern California Business Development neighborhoods. Corporation, a multi-bank community development corpo- The 1995 Examination found no evidence of prohibited ration that invests in small businesses in South Central Los discrimination or other illegal credit practices. Moreover, Angeles that do not qualify for conventional bank financexaminers found no evidence of policies or practices in- ing. Based on all the facts of record, including the Protestant's comments, and for the reasons discussed above, the Board concludes that convenience and needs considerations are consistent with approval of this proposal. Nonbanking Activities the end of 1996. As of July 31, 1996, Banamex had completed 80 percent of the required capitalization. Banamex has sold approxi- Banacci also has filed notice, pursuant to section 4(c)(8) of mately $1.9 billion of commercial loans, net of reserves, to Fobaproa, the Mexican banking insurance fund in exchange for Mexican govern- the BHC Act, to engage through Company in full-service ment securities. securities brokerage, private placement, and riskless princi- 14. CCB represents less than 3 percent of Banamex's total assets. pal activities. The Board notes that ACCI is a registered 15. The Board notes that the Statement of the Federal Financial Supervisory Agencies Regarding the CRA provides that a CRA examination is an important and often controlling factor in the consideration of an institution's CRA record and that reports of these examina- 16. Examiners noted certain technical violations of the fair lending tions will be given great weight in the applications process. laws, which they did not consider to reflect negatively on CCB's 54 Federal Register 13,742, 13,745 (1989). lending practices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1051 broker-dealer with the Securities and Exchange Commis- within the meaning of section 4(c)(8) of the BHC Act.20 sion ("SEC") and is a member of the National Association The Board also has determined that acting as agent in the of Securities Dealers, Inc. ("NASD"). ACCI, therefore, is private placement of securities, and purchasing and selling subject to the recordkeeping, reporting, and fiduciary stan- securities on the order of investors as a riskless principal, dards of the Securities Exchange Act of 1934 (15 U.S.C. do not constitute underwriting and dealing in securities for § 78a et seq.), the SEC, and the NASD. purposes of section 20 of the Glass-Steagall Act, and that Section 4(c)(8) of the BHC Act provides that a bank revenue derived from these activities is not subject to the holding company may, with Board approval, engage in any 10-percent revenue limitation on bank-ineligible securities activity that the Board determines to be "so closely related underwriting and dealing.21 to banking or managing or controlling banks as to be a Banacci has committed that ACCI will conduct its priproper incident thereto."17 As noted above, the Board has vate placement activities using the same methods and determined by regulation that the proposed full-service procedures and subject to the same prudential limitations securities brokerage activities are closely related to bank- as those established by the Board in Bankers Trust and J.P. ing for purposes of section 4(c)(8) of the BHC Act.18 Morgan, as modified to reflect the status of Banacci as a Banacci has committed that ACCI will conduct these activ- foreign banking organization.22 The limitations include the ities in accordance with the Board's regulations and orders comprehensive framework of restrictions imposed by the approving these activities for bank holding companies. Board in connection with underwriting and dealing in bank-ineligible securities, which were designed to avoid Private Placement and "Riskless Principal" Activities potential conflicts of interests, unsound banking practices, and other adverse effects. Banacci also has committed that Private placement involves the placement of new issues of ACCI will conduct its riskless principal activities subject to securities with a limited number of sophisticated purchas- the limitations previously established by the Board.23 ers in a nonpublic offering. A financial intermediary in a private placement transaction acts solely as an agent of the Other Considerations issuer in soliciting purchasers and does not purchase the securities and attempt to resell them. Securities that are In order to approve this proposal, the Board must deterprivately placed are not subject to the registration require- mine that the proposed activities are a proper incident to ments of the Securities Act of 1933 and are offered only to financially sophisticated institutions and individuals and not to the public. ACCI will not privately place registered 20. See The Bank of New York Company, Inc., 82 Federal Reserve securities and will only place securities with customers that Bulletin 748 (1996) ("Bank of New York"); J.P. Morgan & Company Inc., 76 Federal Reserve Bulletin 26 (1990) ("J.P. Morgan"); Bankers qualify as accredited investors. Trust New York Corporation, 75 Federal Reserve Bulletin 829 (1989) "Riskless principal" is the term used in the securities ("Bankers Trust"). business to refer to a transaction in which a broker-dealer, 21. See Bankers Trust. after receiving an order to buy (or sell) a security for a 22. See The Sumitomo Bank, Limited, 77 Federal Reserve Bulletin 339 (1991); Creditanstalt-Bankverein, 11 Federal Reserve Bulletin customer, purchases (or sells) the security for its own 183 (1991); The Royal Bank of Scotland Group PLC, 76 Federal account to offset a contemporaneous sale to (or purchase Reserve Bulletin 866 (1990); Canadian Imperial Bank of Commerce, from) the customer.19 "Riskless principal" transactions are 76 Federal Reserve Bulletin 158 (1990). Among the prudential limitaunderstood in the industry to include only transactions in tions discussed more fully in these orders are that Banacci has the secondary market. ACCI, thus, would not act as a committed that ACCI will not privately place registered investment company securities or securities of investment companies that are "riskless principal" in selling securities on the order of a sponsored or advised by Banacci or any of its affiliates. In addition, customer that is the issuer of the securities to be sold or in ACCI will make no general solicitation or general advertising for any transaction in which ACCI or an affiliate has a contrac- securities it places. tual agreement to place the securities as agent of the issuer. 23. See Bank of New York. ACCI will not hold itself out as making a market in the bank-ineligible securities that ACCI buys and sells as ACCI also would not act as a "riskless principal" in any riskless principal, or enter quotes for specific bank-ineligible securitransaction involving a security for which it or an affiliate ties in any dealer quotation system in connection with ACCI's riskless makes a market. principal transactions, except that ACCI may enter bid or ask quota- The Board has determined that, subject to the limitations tions, or publish "bid wanted" or "offering wanted" notices on established by the Board in prior orders, the proposed trading systems other than NASDAQ or an exchange, if ACCI does not enter price quotations on different sides of the market for a private placement and riskless principal activities are so particular security for two business days. In other words, ACCI must closely related to banking as to be a proper incident thereto wait at least two business days after entering a "bid" quote on a security before entering an "ask" quote on the same security and vice versa. ACCI will not act as riskless principal for registered investment company securities or for any securities of investments companies 17. 12 U.S.C. § 1843(c)(8). that are advised by ACCI or its affiliates. In addition, if ACCI provides 18. See 12 C.F.R. 225.25(b)(15). riskless principal services in combination with investment advisory 19. See SEC Rule 10b-10(a)(8)(i) (17 C.F.R. 240.10b-10(a)(8)(i)). services in the U.S., it will conduct its riskless principal activities in The Board notes that, as a registered broker-dealer, ACCI must accordance with the limitations established by the Board for the conduct its riskless principal activities in accordance with the cus- full-service brokerage activities of bank holding companies. See tomer disclosure and other requirements of the federal securities laws. 12 C.F.R. 225.25(b)(15)(ii). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1052 Federal Reserve Bulletin • November 1996 banking, that is, that the performance of the proposed this decision are deemed to be conditions imposed in activities by ACCI can reasonably be expected to produce writing by the Board in connection with its findings and public benefits that would outweigh possible adverse ef- decision and, as such, may be enforced in proceedings fects.24 under applicable law. In evaluating these factors, the Board considers the By order of the Board of Governors, effective Septemfinancial and managerial resources of the notificant and its ber 9, 1996. subsidiaries, and the effect the proposed transaction would have on those resources.25 Based on all the facts of record, Voting for this action: Chairman Greenspan and Governors Kelley, the Board concludes that financial and managerial consid- Lindsey, Phillips, Yellen, and Meyer. Absent and not voting: Vice Chair Rivlin. erations are consistent with approval of this notice. For the reasons discussed above, and in reliance on all the commit- JENNIFER J. JOHNSON ments made in connection with this notice and the condi- Deputy Secretary of the Board tions discussed in this order, the Board concludes that this proposal is not likely to result in significantly adverse The Toronto-Dominion Bank effects, such as decreased or unfair competition, conflicts Toronto, Canada of interest, unsound banking practices, undue concentration of resources, or other adverse effects. Moreover, the Order Approving an Application to Become a Bank Board expects that the proposal would expand the invest- Holding Company and Notices to Acquire Nonbanking ment services for and provide greater convenience to, Companies Banacci's customers and increase the level of competition among existing providers of these services. The Board has The Toronto-Dominion Bank, Toronto, Canada ("TDB"), determined, therefore, that the performance of the proa foreign bank subject to the Bank Holding Company Act posed activities by ACCI can reasonably be expected to ("BHC Act"), has requested the Board's approval under produce public benefits that outweigh possible adverse section 3 of the BHC Act (12 U.S.C. § 1842) to become a effects under the proper incident to banking standard of bank holding company by acquiring all the voting shares of section 4(c)(8) of the BHC Act. Waterhouse Investor Services, Inc., New York ("Waterhouse"), and its wholly owned subsidiary bank, Water- Conclusion house National Bank, White Plains ("WNB"), both in the State of New York.1 TDB also has requested the Board's Based on the foregoing and all the facts of record, the approval under section 4(c)(8) of the BHC Act (12 U.S.C. Board has determined that the application and notice § 1843(c)(8)) and section 225.23 of the Board's Regulation should be, and hereby are, approved. Should any restric- Y (12 C.F.R. 225.23) to acquire the nonbanking subsidiartions on access to information on the operations or activiies of Waterhouse and thereby engage nationwide in certies of Banacci and any of its affiliates subsequently intertain permissible nonbanking activities.2 fere with the Board's ability to determine compliance by Notice of the proposal, affording interested persons an Banacci or any of its affiliates with applicable federal opportunity to submit comments, has been published in statutes, the Board may require termination of any of accordance with the Board's rules (61 Federal Register Banacci's direct or indirect activities in the United States. 37,480 and 28,585 (1996)). The time for filing comments The Board's approval is specifically conditioned on comhas expired, and the Board has considered the proposal and pliance by Banacci with all the commitments made in all comments received in light of the factors set forth in connection with this application and notice and on receipt sections 3 and 4 of the BHC Act. by Banacci of all necessary approvals from state and TDB, with total consolidated assets of $84.5 billion, is federal regulators. The Board's determinations on the nonthe fifth largest commercial bank in Canada.3 In the United banking activities are subject to all the terms and condi- States, TDB operates a branch in New York, New York, tions set forth in Regulation Y, including those in secwhich controls $3.0 billion in deposits, representing aptions 225.7 and 225.23(g) of Regulation Y (12 C.F.R. 225.7 and 225.23(g)), and to the Board's authority to require such modification or termination of the activities of 1. TDB proposes to acquire Waterhouse through its wholly owned a bank holding company or any of its subsidiaries as it subsidiary, TD/Oak, Inc., New York, New York, which has also finds necessary to ensure compliance with or to prevent applied under section 3 of the BHC Act to become a bank holding company. evasion of the provisions of the BHC Act and the Board's 2. Waterhouse owns the following nonbanking subsidiaries, all in regulations and orders issued thereunder. The commit- New York, New York: Waterhouse Securities, Inc. ("WSI"), Washments and conditions relied on by the Board in reaching ington Discount Brokerage Corp., and National Investor Services Corp. Each of these companies provides discount brokerage and other securities related services pursuant to 12 C.F.R. 225.25(b)(15)(i). TDB also has applied for approval to acquire a warrant for up to 24. 12 U.S.C. § 1843(c)(8). 6.9 percent of the voting shares of Waterhouse, which would become 25. See 12 C.F.R. 225.24. See also The Fuji Bank, Limited, 75 moot on consummation of the proposal. Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 3. Asset data are as of April 30, 1996, and are based on the average Federal Reserve Bulletin 155 (1987). exchange rate applicable in April 1996. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1053 proximately 1.2 percent of total deposits in commercial competitors also would remain in the market. Accordingly, banks in the state.4 TDB also owns an agency in Houston, and based on all the facts of record, the Board has con- Texas, and representative offices in New York, New York, cluded that consummation of this proposal would not have and Chicago, Illinois. In addition, TDB engages in a broad a significantly adverse effect on competition or the conrange of permissible nonbanking activities in the United centration of banking resources in any relevant banking States through subsidiaries, including underwriting and market. dealing in debt and equity securities to a limited extent, discount brokerage, and lending. Other Factors Under the BHC Act Waterhouse is the 34th largest commercial banking organization in New York State, controlling deposits of approx- The BHC Act requires the Board to consider whether a imately $609 million, representing less than 1 percent of foreign bank is subject to comprehensive supervision and total deposits in commercial banks in the state.5 Water- regulation on a consolidated basis by its home country house also provides discount brokerage and related ser- supervisor. The Board also must consider the financial and vices primarily to retail customers throughout the United managerial resources and future prospects of the compa- States. On consummation of the proposal, TDB would nies and banks involved, the convenience and needs of the become the 14th largest commercial bank in New York community to be served, and certain other supervisory State, controlling deposits of $3.6 billion. factors. Competitive Considerations A. Supervisory Factors The BHC Act prohibits the Board from approving an Under section 3 of the BHC Act, as amended by the application under section 3 of the BHC Act if the proposal Foreign Bank Supervision Enhancement Act of 1991,9 the would result in a monopoly, or would substantially lessen Board may not approve an application involving a foreign competition in any relevant banking market, unless the bank unless the bank is "subject to comprehensive supervi- Board finds that the anticompetitive effects of the proposal sion or regulation on a consolidated basis by the appropriare clearly outweighed in the public interest by the proba- ate authorities in the bank's home country."10 The Board ble effect of the proposal in meeting the convenience and previously has determined, in applications under the Interneeds of the community to be served. national Banking Act (12 U.S.C. § 3101 et seq. ) ("IBA") TDB and WNB compete directly in the New York/New and the BHC Act, that certain Canadian commercial banks Jersey Metropolitan banking market ("New York Metro- were subject to comprehensive consolidated supervision by politan banking market").6 After consummation of this their home country authorities.11 In this case, the Board has proposal, TDB would control less than 1 percent of the determined that TDB is supervised on substantially the total deposits in commercial banks and savings associa- same terms and conditions as the other Canadian banks.12 tions in the New York Metropolitan banking market,7 and the market would remain unconcentrated as measured by the Herfindahl-Hirschman Index ("HHI").8 Numerous effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the 4. State data and deposit data for TDB are as of June 30, 1996. competitive effect of limited-purpose lenders and other non-depository 5. State data and deposit data for WNB are as of June 30, 1996. institutions. 6. The New York Metropolitan banking market includes New York 9. Pub. L. No. 102-242, § 201 et seq. , 105 Stat. 2286 (1991). City; Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, and 10. 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the Westchester Counties in New York; Bergen, Essex, Hudson, Hunter- Board determines whether a foreign bank is subject to consolidated don, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sus- home country supervision under the standards set forth in Regulation sex, Union, Warren, and a portion of Mercer Counties in New Jersey; K (International Banking Operations). 12 C.F.R. 225.13(b)(5). Regula- Pike County in Pennsylvania; and portions of Fairfield and Litchfield tion K provides that a foreign bank may be considered subject to Counties in Connecticut. consolidated supervision if the Board determines that the bank is 7. Market share data are as of June 30, 1995, except for data for supervised or regulated in such a manner that its home country TDB, which are as of June 30, 1996. Market share data are based on supervisor receives sufficient information on the worldwide operations calculations in which deposits of thrift institutions are included at of the foreign bank, including the relationship of the bank to its 50 percent. The Board previously has indicated that thrift institutions affiliates, to assess the foreign bank's overall financial condition and have become, or have the potential to become, significant competitors compliance with law and regulation. 12 C.F.R. 211.24(c)(l)(ii). of commercial banks. See, e.g., Midwest Financial Group, 75 Federal 11. See National Bank of Canada, 82 Federal Reserve Bulletin 769 Reserve Bulletin 386 (1989). Thus, the Board regularly has included (1996); Bank of Montreal, et al., 80 Federal Reserve Bulletin 925 thrift deposits in the calculation of market concentration on a 50- (1994) ("Bank of Montreal"). percent weighted basis. See, e.g., First Hawaiian, Inc., 11 Federal 12. In reviewing this factor, the Board has carefully considered Reserve Bulletin 52 (1991). comments by Inner City Press/Community on the Move, Bronx, New 8. The HHI would remain unchanged at 735. Under the revised York ("Protestant") contending that Canadian financial institutions Department of Justice Merger Guidelines, 49 Federal Register 26,823 are not subject to comprehensive supervision on a consolidated basis. (1984), a market in which the post-merger HHI is below 1000 is In particular, Protestant argues that recent reported regulatory violaconsidered unconcentrated. The Department of Justice has informed tions and significant trading losses involving a Japanese bank, a the Board that a bank merger or acquisition generally will not be Japanese trading firm, and a Swiss bank require the Board to reconchallenged (in the absence of other factors indicating anticompetitive sider its previous determinations that Canadian banks are subject to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1054 Federal Reserve Bulletin • November 1996 Based on all the facts of record, the Board has concluded all the facts of record, the Board concludes that considerthat TDB is subject to comprehensive supervision and ations relating to the financial and managerial resources regulation on a consolidated basis by its home country and future prospects of the organizations involved are supervisor. consistent with approval.15 The BHC Act also requires the Board to determine that the foreign bank has provided adequate assurances that it B. Convenience and Needs Factor will make available to the Board such information on its operations and activities and those of its affiliates that the The Board has long held that consideration of the conve- Board deems appropriate to determine and enforce compli- nience and needs factor includes a review of the records of ance with the BHC Act. The Board has reviewed the the relevant depository institutions under the Community restrictions on disclosure in jurisdictions where TDB has Reinvestment Act (12 U.S.C. § 2901 et seq. ) ("CRA"). material operations and has communicated with relevant The Office of the Comptroller of the Currency ("OCC"), government authorities concerning access to information. WNB's primary federal supervisor, has not evaluated the TDB has committed that, to the extent not prohibited by bank's record of CRA performance, and TDB has not applicable law, it will make available to the Board such controlled an institution subject to evaluation under the information on the operations of TDB and any of its CRA for a number of years. In this light, Protestant conaffiliates that the Board deems necessary to determine and tends that WNB has an inadequate record of performance enforce compliance with the BHC Act, the IBA, and other under the CRA,16 and that TDB does not have the capabilapplicable federal law. TDB also has committed to cooper- ity to improve WNB's record of performance.17 The Board ate with the Board to obtain any waivers or exemptions has carefully reviewed Protestant's comments in light of that may be necessary in order to enable TDB to make any all the facts of record.18 such information available to the Board. In light of these commitments and other facts of record,13 the Board has concluded that TDB has provided adequate assurances of of record including information received from Canadian regulatory access to any appropriate information the Board may re- authorities, certain allegations regarding the involvement of TDB and quest. For these reasons, based on all the facts of record TDB's senior management in the acquisition of Maple Leaf Gardens, and subject to the conditions noted below, the Board has in which TDB acted as a lender and acquired indirectly a limited equity position. The Board also has considered press reports submitted concluded that the supervisory factors it is required to by Protestant regarding certain small-business lending and cost-saving consider under section 3(c)(3) of the BHC Act are consispractices of TDB management and damages assessed against TDB for tent with approval. cancelling a line of credit. In considering the financial resources of TDB, the Board 15. TDB has notified the Board pursuant to the Depository Institution Management Interlocks Act (12 U.S.C. § 3201) ("DIMIA") and notes that TDB must comply with capital standards that the Board's Regulation L (12 C.F.R. 212) that the chairman of its conform to the Basle Capital Accord, as implemented by board of directors also serves on the board of a diversified savings and Canadian banking authorities. TDB's capital levels comply loan holding company. Protestant has expressed concerns about this with those standards and are considered equivalent to the interlock. Based on all the facts of record, including TDB's represencapital that would be required of a United States banking tation that the officer would not serve on the board of Waterhouse or WNB, the Board concludes that the officer's management functions organization. Moreover, the proposed transaction is relawith TDB "relate principally to the business outside the United States tively small, would involve no significant diminution of of a foreign commercial bank." 12 C.F.R. 212.2(h)(2). Accordingly, capital, and is not expected to have a significantly adverse the interlocking official is not a "management official" subject to the effect on the financial or managerial resources of TDB, interlocks prohibition of Regulation L and the DIMIA. 16. Protestant criticizes a number of aspects of WNB's CRA Waterhouse, or WNB. The Board also has carefully considperformance, including making allegations that WNB: ered the managerial resources of TDB in light of all the (1) Failed to implement the CRA initiatives described in Waterfacts of record including assessment of the bank's manage- house's application to charter WNB in 1994; rial resources by Canadian banking authorities.14 Based on (2) Failed to include New York City within its delineated service community; (3) Failed to meet adequately the needs of its delineated community; comprehensive supervision on a consolidated basis. Protestant also (4) Made flawed attempts to improve its CRA performance through expresses concern about the conduct of Canadian regulators with investments in community development projects after this applicarespect to certain alleged improper actions involving the takeover of tion was filed; the Maple Leaf Gardens sports arena in Toronto, Canada. Protestant's (5) Has lacked a coherent CRA program; and comments on the trading and other activities of Japanese and Swiss (6) Has experienced numerous delays in and made frequent changes Banks do not relate to the supervision of Canadian financial institu- to its CRA-related strategies and activities. tions. TDB denies any improper conduct in the Maple Leaf Gardens 17. Protestant maintains that TDB lacks recent experience with transaction, and a lawsuit brought by Canadian authorities related to CRA compliance and that TDB has failed to understand and properly that transaction has been dismissed. address the CRA performance issues raised during the processing of 13. The Board previously has reviewed relevant provisions of the application. confidentiality, secrecy, and other laws in jurisdictions in which TDB 18. Protestant contends that WNB's decision to locate in White has material operations. See Bank of Montreal; National Bank of Plains, rather than in New York, New York, where Waterhouse is Canada. located, has a discriminatory impact on low- and moderate-income 14. In weighing the adequacy of the financial and managerial ("LMI") and minority communities, which are located primarily resources, the Board has carefully considered, in light of all the facts elsewhere in the New York Metropolitan banking market. The record Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1055 WNB was chartered in 1994 as an "affinity" bank to WNB initiated its new CRA strategy in August 1996 by provide banking services primarily to customers who ob- purchasing a $2 million New York City Housing Developtained securities-related services from Waterhouse's bro- ment Corporation bond that is dedicated to financing houskerage subsidiaries nationwide. The bank did not begin ing for LMI individuals. In addition, WNB has committed actively to market deposit services until May 1995 or to to make $1 million in qualified community development test-market credit card products until December 1995. loans in the coming year. The bank has committed From December 1995 to June 1996, the amount of deposits $600,000 to the Community Preservation Corporation, a held by WNB doubled to approximately $609 million. private nonprofit mortgage lender specializing in financing During this period of significantly increasing deposits, housing for LMI families. WNB also made a $100,000 WNB became eligible for consideration as a "limited loan commitment to the Leviticus 25:23 Alternative Fund, purpose bank" under the new CRA regulations, which Inc., a nonprofit community development loan fund that were jointly promulgated by the federal financial supervi- provides low-interest financing to organizations whose sory agencies during WNB's start-up period.19 In August projects benefit LMI individuals and groups. 1996, the OCC designated WNB as a "limited purpose WNB provided $75,000 in grants to various organizabank" under the new CRA regulations.20 TDB proposes to tions in support of their community development efforts, continue to operate WNB as a limited purpose bank. The including a grant of $30,000 to the YMCA of Central and designation permits WNB's record of CRA performance to Northern Westchester. WNB also donated $4,000 to the be evaluated under a separate "community development Westchester Housing Fund to underwrite the costs of a test."21 Community development activities as a general research study on housing in the county. Additionally, matter must benefit areas within an institution's assessment members of WNB's board of directors and CRA commitarea(s) or a broader statewide or regional area that includes tee serve as members of organizations dedicated to commuthe institution's assessment area.22 nity development. In anticipation of its limited purpose designation WNB The Board has also carefully considered the effect of the refocused its CRA program, and the bank expects to incor- proposed acquisition of WNB by TDB on the future perforporate the following activities into its CRA program and mance of WNB under the CRA. TDB is a large banking policies: organization with a satisfactory record of complying with (1) Loan participations in programs dedicated to LMI United States banking regulations and substantial financial neighborhoods; and managerial resources that are sufficient to ensure com- (2) Investments in state and local housing bonds; pliance by WNB with all relevant regulatory requirements. (3) Grants in support of programs benefiting LMI In connection with the proposal, TDB has made a number groups; and of commitments to ensure that WNB performs satisfacto- (4) Directorships and memberships in community orga- rily or better under the CRA. For example, TDB has nizations and associations. provided goals for WNB's community development program and procedures for overseeing WNB's CRA program.23 TDB also intends to work closely with the OCC and the communities involved, and to make adjustments in the bank's CRA program, including quarterly adjustments contains no evidence, and Protestant has supplied none, to support its allegations of discrimination or discriminatory impact in the choice of to its funding for the CRA program, as appropriate. TDB's office location. 19. See 60 Federal Register 22,156 (1995). A "limited purpose bank" is an institution that offers only a narrow product line (like a 23. TDB has committed to support the efforts of WNB's full-time credit card) to a regional or broader market and that has been so CRA officer, its CRA committee, and its board of directors. TDB also designated by its primary federal supervisor. 12 C.F.R. 25.1 l(o). The has committed to: new CRA regulations permit institutions to apply for limited purpose (1) Appoint a TDB officer who resides in New York to serve on designation after January 1, 1996, and WNB applied to the OCC in WNB's CRA committee; March 1996. WNB proposes to offer credit card products primarily to (2) Provide CRA training to TDB's compliance, legal, internal customers of its brokerage affiliate. audit, and public affairs departments within three months of the 20. See OCC letter dated August 30, 1996, from Bert A. Otto, acquisition of WNB; Acting Deputy Comptroller. Protestant disputes the OCC's determina- (3) Conduct periodic unannounced on-site reviews of WNB's CRA tion that WNB qualifies as a limited purpose bank. Neither the CRA program, the results of which will be reported to TDB's board of nor the new CRA regulations authorize the Board to review such directors; designations by the bank's primary federal supervisor. (4) Require monthly reports that measure past performance and 21. See 12 C.F.R. 25.21(b)(4). The test evaluates a limited purpose detail future plans from WNB's CRA officer; institution on its record of community development services, commu- (5) Require WNB's CRA committee to file quarterly CRA reports nity development investments and community development lending. with the WNB and Waterhouse boards of directors, and annual See 12 C.F.R. 25.25. The primary purpose of any service, investment CRA reports with the TDB board of directors; or loan considered under the test must be "community development," (6) Require that each potential CRA investment is reviewed by which is defined in terms of specific categories of activities WNB's CRA officer, WNB's counsel, and TDB to ensure that the that benefit LMI individuals, LMI areas, or small businesses. See investment is qualified under CRA regulations; and 12 C.F.R. 25.12(h). (7) Have the TDB and Waterhouse boards of directors review the 22. Community development activities outside an institution's as- OCC's CRA evaluations of WNB. sessment area may also be considered if the institution has adequately Protestant maintains that TDB's proposals are inadequate and that addressed the needs of its assessment area. See 12 C.F.R. 25.25(e). TDB's commitments are too general to be accorded any weight. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1056 Federal Reserve Bulletin • November 1996 record of operating in the United States and its dealings rial considerations are consistent with approval of these with federal banking supervisors indicate that TDB may be notices. relied on to implement fully the programs and policies it The Board also has carefully considered the competitive has committed to implement. effects of the proposed acquisition of the nonbanking companies and, in so doing, has considered the comments C. Conclusion on the Convenience and Needs submitted by Protestant regarding the competitive impact Factor of the proposed acquisition.27 The Board notes that the market for discount brokerage and related services is un- The Board has carefully considered the entire record in its concentrated and that there are numerous providers of the review of the convenience and needs factor under section 3 services.28 As a result, consummation of this proposal of the BHC Act, including information provided by the would have a de minimis effect on competition for broker- Protestant and TDB. Based on all the facts of record and age services, and the Board has concluded that the proposal for the reasons discussed above, the Board concludes that, would not have a significant adverse effect on competition on balance, considerations relating to the convenience and in any relevant market. needs factor, including the CRA performance record of In addition, TDB expects that the proposed transaction WNB, are consistent with approval of the proposal. To would result in public benefits by permitting Waterhouse enable the Board to monitor the efforts of WNB and TDB, and its customers to draw on the greater capital resources, TDB must submit a copy of WNB's internal quarterly technological capabilities, and retail banking experience of CRA reports to the Federal Reserve Bank of New York for TDB and its affiliates. For example, TDB notes that access two years or until WNB receives a "satisfactory" or better to its extensive operations and communications systems CRA rating from its primary regulator, whichever period is would give Waterhouse the ability to improve productivity, shorter. The Board also intends to review WNB's progress to reduce costs, and thereby to reduce prices on brokerage in future applications by TDB to establish a depository and other services. Similarly, TDB expects that access to facility, as required by the CRA. its financial resources should provide Waterhouse with additional working capital to expand operations to meet Nonbanking Activities customer needs.29 In sum, Waterhouse's affiliation of TDB and its subsidiaries may be expected to yield greater conve- TDB also has filed notices, pursuant to section 4(c)(8) of nience for Waterhouse's customers and to foster improved the BHC Act, to acquire the nonbanking subsidiaries of methods of meeting the needs of those customers.30 Waterhouse and thereby engage in providing discount bro- For the reasons discussed above, the Board believes that kerage and related services.24 The Board has determined the potential for adverse effects, if any, resulting from the that all the activities are closely related to banking,25 and transaction is negligible. The Board also concludes that, TDB has committed to conduct the nonbanking activities based on the considerations discussed above, the proposal in accordance with Regulation Y. can be expected to produce notable public benefits. Ac- In order to approve the proposal under section 4(c)(8) of cordingly, based on all the facts of record, the Board has the BHC Act, the Board also must determine that the proposed activities are a proper incident to banking, that is, that the proposal "can reasonably be expected to produce 27. Protestant contends that the affiliation of Waterhouse's discount benefits to the public, such as greater convenience, in- brokerage subsidiary, WSI, with TDB's discount brokerage subsidcreased competition, or gains in efficiency that outweigh iary, Green Line Investor Services (USA), Inc. ("Green Line"), would eliminate a current and potentially significant future competitor of possible adverse effects,- such as undue concentration of WSI. resources, decreased or unfair competition, conflicts of 28. See, e.g., Banc One Corporation, 82 Federal Reserve Bulletin interest, or unsound banking practices." As part of its 88 (1996). evaluation of these factors, the Board considers the finan- 29. Protestant disputes TDB's expectations of public benefits. For example, Protestant contends that Green Line's recent expansion into cial condition and managerial resources of the notificant Hong Kong will divert TDB's resources from WSI, and that TDB's and its subsidiaries, including the companies to be acderivatives activities raise further questions about TDB's ability to quired, and the effect of the proposed transaction on those provide WSI with added financial strength. TDB is a large, diversified resources.26 As noted above, based on all the facts of banking institution with significant financial resources. Based on all record, the Board has concluded that financial and manage- the facts of record, including supervisory information from Canadian banking authorities, the Board concludes that Protestant's contentions are not supported by the weight of the evidence in the record. 30. Protestant notes that TDB entered into a consent judgment with the SEC in September 1989, that prohibited TDB from engaging in 24. Such services include providing securities execution, clearing, securities clearing activities in the United States. TDB informed the and other services incidental to securities brokerage. TDB has com- SEC of its pending notices with the Board to acquire Waterhouse, and mitted to conduct these activities according to the conditions that the the SEC consented to TDB's request to remove the prohibition. Board previously has relied on in approving such activities. Consequently, by stipulation and order dated August 2, 1996, the U.S. 25. See 12 C.F.R. 225.25(b)(15)(i). District Court for the Southern District of New York concluded that 26. See 12 C.F.R. 225.24; see also The Fuji Bank, Limited, 75 prohibiting TDB from engaging in the securities clearance business Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 was "no longer necessary to protect the public interest." SEC v. Federal Reserve Bulletin 155 (1987). Hansen, 82 Civ. 5242 (S.D.N.Y. Aug. 2, 1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1057 determined that the balance of public benefits is favorable tion of the activities of a bank holding company or any of under the proper incident to banking standard of sec- its subsidiaries as the Board finds necessary to ensure tion 4(c)(8) of the BHC Act. compliance with, and to prevent evasion of, the provisions of the BHC Act and the Board's regulations and orders Conclusion thereunder. For purposes of this transaction, the commitments and conditions referred to above shall be deemed to Based on the foregoing, and in light of all the facts of be conditions imposed in writing by the Board in connecrecord, the Board has determined that the application and tion with its findings and decision, and, as such, may be notices should be, and hereby are, approved.31 Should any enforced in proceedings under applicable law. restrictions on access to information on the operations or The acquisition of WNB shall not be consummated activities of TDB and its affiliates subsequently interfere before the fifteenth calendar day following the effective with the Board's ability to obtain information to determine date of this order, and this proposal shall not be consumand enforce compliance by TDB or its affiliates with appli- mated later than three months after the effective date of this cable federal statutes, the Board may require termination of order, unless such period is extended for good cause by the any of TDB's direct or indirect activities in the United Board or by the Federal Reserve Bank of New York acting States. Approval of this application and notice is specifi- pursuant to delegated authority. cally conditioned on compliance by TDB with all the By order of the Board of Governors, effective Septemcommitments made in connection with this proposal and ber 30, 1996. with the conditions stated or referred to in this order. The Board's determination on the nonbanking activities Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and also is subject to all the terms and conditions set forth in Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. Regulation Y, including those in sections 225.7 and JENNIFER J. JOHNSON 225.23(b) (12 C.F.R. 225.7 and 225.23(b)), and to the Deputy Secretary of the Board Board's authority to require such modification or termina- 31. Protestant has requested that the Board hold a public hearing or ORDERS ISSUED UNDER INTERNATIONAL BANKING ACT meeting on the convenience and needs, managerial, adverse competitive, public benefits, and other effects resulting from this proposal. China Construction Bank Section 3(b) of the BHC Act does not require the Board to hold a Beijing, People's Republic of China public meeting or hearing on an application unless the appropriate supervisory authority for the bank to be acquired makes a timely written recommendation of denial of the application. No supervisory agency has recommended denial in this case. Under the Board's Order Approving Establishment of a Representative Regulation Y, a hearing is required under section 4 of the BHC Act Office only if there are disputed issues of material fact that cannot be resolved in some other manner. 12 C.F.R. 225.23(f). In addition, under the Board's Rules of Procedure, the Board, in its discretion, hold a China Construction Bank, Beijing, People's Republic of public hearing or meeting on an application to clarify factual issues China ("Bank"), a foreign bank within the meaning of the relating to the application and to provide an opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). International Banking Act ("IBA"), has applied under sec- Protestant does not identify disputed issues of fact that are material tion 10(a) of the IBA (12 U.S.C. § 3107(a)) to establish a to the Board's decision, including any disputed issues of fact on the representative office in New York, New York. The Foreign public benefits or the competitive effect of the proposal. In addition, Bank Supervision Enhancement Act of 1991, which interested parties have had an ample opportunity to present their amended the IBA, provides that a foreign bank must obtain views, and Protestant has submitted substantial written comments that have been carefully considered by the Board. Protestant's request fails the approval of the Board to establish a representative to demonstrate why a written presentation would not suffice and to office in the United States. summarize evidence that would be presented at a hearing or meeting. Notice of the application, affording interested persons an See 12 C.F.R. 262.3(e). The Board has carefully considered the opportunity to comment, has been published in a newspaproposal in light of all the facts of record, including Protestant's comments on the issues discussed above, and, for the reasons dis- per of general circulation in New York (The New York cussed in this order, has concluded that the factors that the Board must Times, June 19, 1996). The time for filing comments has consider under sections 3 and 4 of the BHC Act are consistent with expired, and the Board has considered the application and approval. Protestant's request disputes the weight that should be all comments received. accorded to, and the conclusions that the Board should draw from, the As of March 31, 1996, Bank had total assets of approxiexisting facts of record. For these reasons, and based on all the facts of record, the Board has determined that a public hearing or meeting is mately $211 billion. Bank, formerly known as the People's not required or warranted to clarify the factual record in the proposal, Construction Bank of China, is the third largest of four or otherwise warranted in this case. Accordingly, the request for a specialized banks in the People's Republic of China, and is hearing or public meeting on the proposal is hereby denied. wholly owned by the Chinese government. Bank operates Protestant also has requested that it be permitted to present its views more than 13,000 branches and subbranches and more than orally to the Board. See 12 C.F.R. 262.3(e). For the reasons discussed above, the request for oral presentation is hereby denied. 28,000 deposit-taking offices in China, as well as three Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1058 Federal Reserve Bulletin • November 1996 domestic financial subsidiaries.1 Outside China, Bank oper- not engage in activities such as making credit decisions on ates a branch in Hong Kong and representative offices in behalf of Bank, soliciting deposits from other than institu- London, England; Frankfurt, Germany; Seoul, Korea; tional investors, soliciting business of any kind from indi- Tokyo, Japan; and Singapore; and has a minority invest- viduals acting in their personal capacity, or conducting any ment in a Hong Kong bank. activities relating to trading. Prior to 1994, one of Bank's primary activities was fiscal The Board has considered the following information lending, which constituted receiving funds from Chinese with respect to home country supervision of Bank. The governmental bodies and state-owned enterprises and lend- People's Bank of China (the "PBOC") is the licensing, ing such funds to state-owned enterprises and infrastruc- regulatory and supervisory authority for banks and all ture projects. In 1994, Bank became a state-owned com- other financial institutions in China and, as such, is the mercial bank engaged primarily in commercial banking. home country supervisor of Bank. While regulation of the Bank's activities now include commercial and retail specialized banks by the PBOC historically has focused on deposit-taking, lending for its own account, and borrowing the banks' compliance with state economic and financial in domestic and international markets. Bank also makes goals, in the last several years China and its banking disbursements for and otherwise administers loans for other authorities have taken steps to develop a more marketgovernment-owned banks. oriented bank supervisory program placing greater empha- In acting on an application to establish a representative sis on prudential standards. The PBOC establishes capital, office, the IBA and Regulation K provide that the Board liquidity and asset quality requirements, regulates the inshall take into account whether the foreign bank engages vestments of banks in other companies, establishes internal directly in the business of banking outside of the United auditing standards for Chinese banks, and monitors Chi- States, has furnished to the Board the information it needs nese banks for adherence to Chinese laws and regulations. to assess the application adequately, is subject to compre- The PBOC, which has authorized Bank to establish the hensive supervision or regulation on a consolidated basis proposed representative office, supervises the foreign and by its home country supervisor, and has provided adequate domestic activities of Bank. assurances of access to information on the operations of The PBOC monitors the operations of Bank through the bank and its affiliates to determine compliance with on-site examinations and the review of periodic reports U.S. laws. (12 U.S.C. § 3107(a); 12 C.F.R. 211.24(d)). The from Bank. The PBOC conducts both comprehensive and Board also may take into account additional standards as limited ad hoc on-site examinations of Bank. On-site examset forth in the IBA (12 U.S.C. § 3105(d)(3)-(4)) and inations generally focus on Bank's execution of economic Regulation K (12 C.F.R. 211.24(c)). The Board previously and financial policies and compliance with financial regulahas stated that the standards that apply to the establishment tions, as well as Bank's internal controls, asset quality, of a branch or agency need not in every case apply to the capital, liquidity and profitability. Bank is required to subestablishment of a representative office.2 Moreover, the mit various periodic financial and regulatory reports to the Board also has determined that an application by a foreign PBOC, including balance sheets, income statements, analybank to establish a representative office may be approved ses of classified loans and external debt, reports on foreign if: exchange risk, reports on deposits, borrowings, guarantees, (i) The bank commits that the proposed representative and securities and investments. Bank also is required to office will engage only in a limited set of activities publish its financial statements and audit report yearly. considered to pose minimal risk to U.S. markets or Bank's internal audit department conducts monthly, U.S. counterparties; and quarterly, and annual internal audits of Bank, as well as (ii) The bank is subject to a supervisory framework occasional special audits. Internal audits generally review that is consistent with approval of the application, Bank's internal guidelines, operating and financial plans, taking into account the limited activities of the pro- budgets, and financial statements, as well as compliance posed office and the operating record of the bank.3 with governmental and Bank's own policies. The PBOC receives copies of Bank's annual audit plan, annual work The activities of Bank's representative office would be summary, and other material relating to internal audits. The limited to general marketing or promotional activities, de- proposed representative office would provide an annual veloping and strengthening correspondent banking rela- operations plan and monthly reports to Bank's head office, tionships, research and consulting activities, and certain and would receive occasional on-site inspections from the loan solicitation activities. The representative office would PBOC and various departments of Bank. Based on all the facts of record, the Board concludes that factors relating to the supervision of Bank by its home 1. These subsidiaries are China Investment Bank, a commercial country supervisor are consistent with approval of the bank; The Trust and Investment Company of People's Construction proposed representative office. The Board also has deter- Bank of China; and China Investment Consulting Corporation of mined that, for purposes of the IBA and Regulation K, China Construction Bank, a financial consulting firm. Bank engages directly in the business of banking outside of 2. Citizens National Bank, 79 Federal Reserve Bulletin 805 (1993). the United States through its operations in China. Bank has 3. Promstroybank of Russia, 82 Federal Reserve Bulletin 599 (1996). provided the Board with the information necessary to as- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1059 sess the application through submissions that address rele- On the basis of all the facts of record, and subject to the vant issues. commitments made by Bank, as well as the terms and The Board also has taken into account the additional conditions set forth in this order, the Board has determined standards set forth in section 7 of the IBA and Regula- that Bank's application to establish a representative office tion K (see 12 U.S.C. § 3105(d)(3),(4); 12 C.F.R. should be, and hereby is, approved. Should any restrictions 211.24(c)(2)). As noted above, the PBOC has authorized on access to information on the operations or activities of Bank to establish the proposed representative office. Bank and any of its affiliates subsequently interfere with The Board also has determined that the financial and the Board's ability to determine the compliance by Bank or managerial factors are consistent with approval of the its affiliates with applicable federal statutes, the Board may representative office. Bank's managerial and financial re- require termination of any of Bank's direct or indirect sources indicate that there is a reasonable degree of cer- activities in the United States. Approval of this application tainty concerning the financial stability of Bank, based on is also specifically conditioned on compliance by Bank its operating record and financial standing within the coun- with the commitments made in connection with this applitry. In addition, Bank's operating record indicates that it is cation and with the conditions in this order.4 The commitcapable of complying with applicable laws. ments and conditions referred to above are conditions Finally, with respect to access to information on Bank's imposed in writing by the Board in connection with its operations, the Board has reviewed the relevant provisions decision, and may be enforced in proceedings under of law in China and has communicated with appropriate 12 U.S.C. § 1818 against Bank and its affiliates. government authorities regarding access to information. By order of the Board of Governors, effective Septem- Bank has committed to make available to the Board such ber 23, 1996. information on the operations of Bank and any of its affiliates that the Board deems necessary to determine and Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and enforce compliance with the IBA, the Bank Holding Com- Governors Kelley, Lindsey, Phillips, and Yellen. Absent and not voting: Governor Meyer. pany Act of 1956, as amended, and other applicable Federal law. To the extent that the provision of such informa- JENNIFER J. JOHNSON tion to the Board may be prohibited or impeded by law, Deputy Secretary of the Board Bank has committed to cooperate with the Board to obtain any necessary consents or waivers that might be required from third parties in connection with disclosure of certain information. In addition, subject to certain conditions, the PBOC may share information on Bank's operations with 4. The Board's authority to approve the establishment of the proother supervisors, including the Board. In light of the posed representative office parallels the continuing authority of the commitments provided by Bank and other facts of record, State of New York to license offices of a foreign bank. The Board's and subject to the condition described below, the Board approval of this application does not supplant the authority of the State of New York and its agent, the New York State Banking concludes that Bank has provided adequate assurances of Department, to license the proposed representative office of Bank in access to any necessary information the Board may reaccordance with any terms or conditions that the New York State quest. Banking Department may impose. APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 4 Applicant(s) Bank(s) Effective Date BankAmerica Corporation, DFO Holding Company, Inc., September 16, 1996 San Francisco, California San Francisco, California Security Pacific Leasing Corporation, Ford Motor Credit Corporation, San Francisco, California Dearborn, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1060 Federal Reserve Bulletin • November 1996 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 Applicant(s) Bank(s) Reserve Bank Effective Date Ameribanc, Inc., First Financial Corporation of America, St. Louis September 17, 1996 St. Louis, Missouri Salem, Missouri BanPonce Corporation, COMBANCORP, New York August 26, 1996 Hato Rey, Puerto Rico City of Commerce, California Popular International Bank, Inc. Commerce National Bank, Hato Rey, Puerto Rico City of Commerce, California BanPonce Financial Corp., Wilmington, Delaware Brickyard Bancorp, Inc., Sysco Financial, Inc., Chicago September 25, 1996 Chicago, Illinois Lincolnwood, Illinois Brickyard Bank, Lincolnwood, Illinois Canton Financial Corporation, The First National Bank of Canton, Dallas August 29, 1996 Canton, Texas Canton, Texas Capitol Bancorp, Limited, Macomb Community Bank, Chicago September 3, 1996 Lansing, Michigan Clinton Township, Michigan Castle Creek Capital Partners Monarch Bancorp, San Francisco September 6, 1996 Fund-I, L.P., Laguna Niguel, California Chicago, Illinois Castle Creek Capital, L.L.C., Chicago, Illinois Eggemeyer Advisory Corp., Chicago, Illinois CB Holding Co., P.N.B. Financial Corporation, Kansas City September 26, 1996 Edmond, Oklahoma Kingfisher, Oklahoma City National Bancshares of Weatherford, Inc., Weatherford, Oklahoma Centura Banks, Inc., FirstSouth Bank, Richmond August 30, 1996 Rocky Mount, North Carolina Burlington, North Carolina Chester Bancorp, Inc., Chester National Bank, St. Louis September 12, 1996 Chester, Illinois Chester, Illinois Chester National Bank of Missouri, Perryville, Missouri Community Central Bank Community Central Bank, Chicago September 11, 1996 Corporation, Mount Clemens, Michigan Mount Clemens, Michigan Crestmark Bancorp, Inc., Crestmark Bank, Chicago August 22, 1996 Bloomfield Hills, Michigan Troy, Michigan Crestmark Financial, Inc., Troy, Michigan F&M Bancorp, Home Federal Corporation, Richmond August 23, 1996 Frederick, Maryland Hagerstown, Maryland First American Bank Corporation, Oak Park River Forest Bankshares, Inc. Chicago September 23, 1996 Elk Grove Village, Illinois Oak Park, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1061 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date First Value Corporation, Tigerton Bancorporation, Chicago September 11, 1996 Appleton, Wisconsin Tigerton, Wisconsin First National Bank in Tigerton, Tigerton, Wisconsin Henderson Citizens Bancshares, Waskom Bancshares, Inc., Dallas August 26, 1996 Inc., Waskom, Texas Henderson, Texas First State Bank, Henderson Citizens Bancshares of Waskom, Texas Delaware, Inc., Dover, Delaware Ida Grove Bancshares, Inc., Farmers State Bank, Chicago September 18, 1996 Ida Grove, Iowa Charter Oak, Iowa American Bancshares, Inc., Holstein, Iowa Key Capital Corporation, Inc., Key Bank and Trust, Richmond September 13, 1996 Owings Mills, Maryland Randallstown, Maryland Lakes Region Bancorp, Inc., Anchor Bank, Chicago September 19, 1996 Bannockburn, Illinois Third Lake, Illinois LandMark Bancshares of Texas, Itasca State Bank, St. Louis September 9, 1996 Inc., Itasca, Texas Columbia, Missouri The Landrum Company, LandMark Bancshares of Texas, Inc., St. Louis September 9, 1996 Columbia, Missouri Columbia, Missouri Lewis Family Partners, L.P., Illinois Valley Bancorp, Inc., Chicago September 6, 1996 Morris, Illinois Morris, Illinois Lewis Management Company, Grundy County National Bank, Morris, Illinois Morris, Illinois Mercantile Bancorporation Inc., First Financial Corporation of America, St. Louis September 17, 1996 St. Louis, Missouri Salem, Missouri Mercantile Bancorporation Inc., Today's Bancorp, Inc., St. Louis September 17, 1996 St. Louis, Missouri Freeport, Illinois Today's Bank-East, Freeport, Illinois Today's Bank-West, Galena, Illinois Mercantile Bancorporation Today's Bancorp, Inc., St. Louis September 17, 1996 Incorporated of Illinois, Freeport, Illinois St. Louis, Missouri Merchants Bancorp, Inc., Merchants National Bank, Cleveland September 12, 1996 Hillsboro, Ohio Hillsboro, Ohio Mid-Peninsula Bancorp, Cupertino National Bancorp, San Francisco September 25, 1996 Palo Alto, California Cupertino, California Cupertino National Bank & Trust, Cupertino, California Monarch Bancorp, Western Bank, San Francisco September 6, 1996 Laguna Niguel, California Los Angeles, California National Bancshares Corporation of Luling Bancshares, Inc., Dallas September 6, 1996 Texas, Luling, Texas Laredo, Texas First National Bank, NBT of Delaware, Inc., Luling, Texas Wilmington, Delaware Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1062 Federal Reserve Bulletin • November 1996 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Norma McLane-Smith Family Poplar Bluff Banc Company, St. Louis September 17, 1996 Limited Partnership, Poplar Bluff, Missouri Poplar Bluff, Missouri Midwest Bancshares, Inc., Poplar Bluff, Missouri Norwest Corporation, American Bank Moorhead, Minneapolis August 30, 1996 Minneapolis, Minnesota Moorhead, Minnesota Oak Park River Forest Bankshares, Community Bank of Oak Park River Chicago September 20, 1996 Inc., Forest, Oak Park, Illinois Oak Park, Illinois Omni Bancshares, Inc., Omni Bank, Atlanta August 28, 1996 Metairie, Louisiana Metairie, Louisiana PCB Bancorp, Inc., People's Community Bank, Atlanta August 26, 1996 Johnson City, Tennessee Johnson City, Tennessee Regions Financial Corporation, American Bancshares of Houma, Inc., Atlanta August 28, 1996 Birmingham, Alabama Houma, Louisiana American Bank & Trust Company of Houma, Houma, Louisiana San Angelo Bancorp, Inc., Texas State Bank, Dallas September 13, 1996 Dover, Delaware San Angelo, Texas South Alabama Bancorporation, First Monco Bancshares, Inc., Atlanta August 22, 1996 Inc., Monroeville, Alabama Mobile, Alabama The Monroe County Bank, Monroeville, Alabama Southwest Missouri Bancshares, Southwest Community Bank, St. Louis August 27, 1996 Inc., Ozark, Missouri Ozark, Missouri St. Joseph Capital Corporation, St. Joseph Capital Bank, Chicago September 4, 1996 South Bend, Indiana Mishawaka, Indiana Texas Bancorp, Inc., San Angelo Bancorp, Inc., Dallas September 13, 1996 San Angelo, Texas Dover, Delaware Texas State Bank, San Angelo, Texas Texas Financial Bancorporation, The Farmers and Mechanics Bank, Dallas September 19, 1996 Inc., Galesburg, Illinois Minneapolis, Minnesota ValliCorp Holdings, Inc., Auburn Bancorp, San Francisco August 21, 1996 Fresno, California Auburn, California WesBanco, Inc., Vandalia National Corporation, Cleveland September 20, 1996 Wheeling, West Virginia Morgantown, West Virginia Western Acquisition Partners, L.P., Western Acquisitions, L.L.C., San Francisco August 22, 1996 Buffalo Grove, Illinois Buffalo Grove, Illinois Sunwest Bank, Tustin, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1063 Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Allegiant Bancorp, Inc., Edge Mortgage Services, Inc., St. Louis September 13, 1996 St. Louis, Missouri Maryland Heights, Missouri Bayerische Vereinsbank AG, VB Structured Finance Inc., New York September 12, 1996 Munich, Germany New York, New York Capitol Bankshares, Inc., Capitol Mortgage Corporation, Chicago August 30, 1996 Madison, Wisconsin Madison, Wisconsin Centennial Holdings. Ltd, Totten, Inc., San Francisco September 17, 1996 Olympia, Washington Olympia, Washington Citizens Development Company, To engage de novo in data processing Minneapolis September 24, 1996 Billings, Montana activities Dadeland Bancshares, Inc., Dadeland Software Services, Inc., Atlanta September 13, 1996 Miami, Florida Miami, Florida Decatur Financial Inc., Independent Bankers Life Insurance Chicago September 5, 1996 Decatur, Indiana Company of Indiana, Phoenix, Arizona First Alliance Bancorp, Inc., Premier Bancshares, Inc., Atlanta August 22, 1996 Marietta, Georgia Atlanta, Georgia Premier Bank, F.S.B., Atlanta, Georgia Premier Lending Corporation, Atlanta, Georgia First Commercial Corporation, To engage de novo in the leasing of St. Louis September 11, 1996 Little Rock, Arkansas personal property First Interstate BancSystem of First Interstate Bank of Commerce, fsb, Minneapolis September 4, 1996 Montana, Inc., Hamilton, Montana Billings, Montana JS Investments, Limited Partnership, Billings, Montana Nbar5, Limited Partnership, Ranchester, Wyoming Fulton Financial Corporation, To engage in community development Philadelphia September 20, 1996 Lancaster, Pennsylvania activities Imperial Bancorp, Pacific Bancard Association, San Francisco August 26, 1996 Los Angeles, California Inglewood, California American Heritage/Pacific Bancard Association, Chatsworth, California I.S.B. Financial Corp., To engage de novo in making and Chicago September 24, 1996 Oak Forest, Illinois servicing loans Mercantile Bancorporation Inc., Today's Insurance Source Agency, Inc., St. Louis September 17, 1996 St. Louis, Missouri East Dubuque, Illinois Mountain Bancshares, Inc., The Bank of Yellville Financial St. Louis September 24, 1996 Yellville, Arkansas Services, Yellville, Arkansas Otto Bremer Foundation, CFS Financial Corp., Minneapolis August 23, 1996 St. Paul, Minnesota Minnestonka, Minnesota Bremer Financial Corporation, St. Paul, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1064 Federal Reserve Bulletin • November 1996 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Pinnacle Banc Group, Inc. Financial Security Corp., Chicago August 30, 1996 Oakbrook, Illinois Chicago, Illinois Security Federal Savings and Loan Association, Chicago, Illinois Dovenmuehle Mortgage Company, L.P., Schaumburg, Illinois Quad City Holdings, Inc., Nobel Electronic Transfer, L.L.C., Chicago September 3, 1996 Bettendorf, Iowa Bettendorf, Iowa St. Clair Agency, Inc., Clarice Germo Agency, Minneapolis September 5, 1996 St. Clair, Minnesota St. Clair, Minnesota Stichting Prioriteit ABN AMRO Heigl Mortgage and Financial Chicago September 26, 1996 Holding, Corporation, Bloomington, Amsterdam, The Netherlands Minnesota Stichting Administratiekantoor ABN AMRO Holding, Amsterdam, The Netherlands ABN AMRO Holding N.V., Amsterdam, The Netherlands ABN AMRO Bank N.V., Amsterdam, The Netherlands ABN AMRO North America, Inc., Chicago, Illinois Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Collective Bancorp, Inc., Continental Bancorporation, Philadelphia August 30, 1996 Egg Harbor, New Jersey Laurel Springs, New Jersey First Midwest Financial, Inc., Central West Bancorporation, Chicago August 28, 1996 Storm Lake, Iowa Casey, Iowa Security State Bank, Stuart, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1065 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. Applicant(s) Bank(s) Reserve Bank Effective Date Centura Bank, FirstSouth Bank, Richmond August 30, 1996 Rocky Mount, North Carolina Burlington, North Carolina Crestar Bank MD, Crestar Bank FSB, Richmond September 25, 1996 Bethesda, Maryland Baltimore, Maryland First Banking Center - Burlington, American National Bank & Trust Chicago September 5, 1996 Burlington, Wisconsin Company of Chicago, Chicago, Illinois First Community Bank, Inc., Huntington National Bank West Richmond September 11, 1996 Buckhannon, West Virginia Virginia, Charleston, West Virginia The First Trust & Savings Bank, Cleghorn State Bank, Chicago September 13, 1996 Aurelia, Iowa Cleghorn, Iowa Mercantile Bank of Polk County, Mercantile Bank of the Bluffs, Chicago August 28, 1996 Des Moines, Iowa Council Bluffs, Iowa Mercantile Bank of Boone, Boone, Iowa Mercantile Bank of Centerville, Centerville, Iowa Mercantile Bank of Chariton, Chariton, Iowa Mercantile Bank of Clay County, Spencer, Iowa Mercantile Bank of Humboldt County, Humboldt, Iowa Mercantile Bank of Jasper County, Newton, Iowa Mercantile Bank of Lyon County, Rock Rapids, Iowa Mercantile Bank of Marshalltown, Marshalltown, Iowa Mercantile Bank of Mount Ayr, Mount Ayr, Iowa Mercantile Bank of Onawa, Onawa, Iowa Mercantile Bank of Osceola County, Sibley, Iowa Mercantile Bank of Pella, Pella, Iowa ValliWide Bank, The Bank of Commerce, N.A., San Francisco August 21, 1996 Fresno, California Auburn, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1066 Federal Reserve Bulletin • November 1996 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the April 8, 1996, the Board filed a motion to dismiss the Federal Reserve Banks in which the Board of Governors is not action. named a party. Henderson v. Board of Governors, No. 96-1054 (D.C. Cir., filed February 16, 1996). Petition for review of a Board order dated January 17, 1996, approving the merger of First Clifford v. Board of Governors, No. 96-1342 (D.C. Cir., filed Citizens BancShares, Inc., Raleigh, North Carolina, with September 17, 1996). Petition for review of Board order Allied Bank Capital, Inc., Sanford, North Carolina. Petitiondated August 21, 1996, denying petitioners' motion to ers' motion for a stay was denied on March 7, 1996. dismiss enforcement action against them. Research Triangle Institute v. Board of Governors, No. Artis v. Greenspan, No. 96-CV-02105 (D. D.C., filed Septem- 1:96CV00102 (M.D.N.C., filed February 12, 1996). Conber 11, 1996). Class complaint alleging race discrimination tract dispute. On May 3, 1996, the Board filed a motion to in employment. Awaiting service. dismiss the action. Leuthe v. Board of Governors, No. 96-5725 (E.D. Pa., filed Inner City Press/Community on the Move v. Board of Gover- August 16, 1996). Action against the Board and other nors, No. 96-4008 (2nd Cir., filed January 19, 1996). Peti- Federal banking agencies challenging the constitutionality tion for review of a Board order dated January 5, 1996, of the Office of Financial Institution Adjudication. approving the applications and notices by Chemical Bank- Long v. Board of Governors, No. 96-9526 (10th Cir., filed ing Corporation to merge with The Chase Manhattan Cor- July 31, 1996). Petition for review of Board order dated poration, both of New York, New York, and by Chemical July 2, 1996, assessing a civil money penalty and cease and Bank to merge with The Chase Manhattan Bank, N.A., both desist order for violations of the Bank Holding Company of New York, New York. Petitioners' motion for an emer- Act. gency stay of the transaction was denied following oral Esformes v. Board of Governors, No. 96-1916 (S.D. Fla., filed argument on March 26, 1996. The Board's brief on the July 12, 1996). Complaint challenging Board denial of merits was filed July 8, 1996. The case has been consoliadministrative request for confidential supervisory informa- dated for oral argument and decision with Lee v. Board of tion. Plaintiffs' motion for an expedited hearing was denied Governors, No. 95^1134 (2d Cir.). on August 1, 1996. On September 20, 1996, the Board filed Menick v. Greenspan, No. 95-CV-01916 (D. D.C., filed Octoa motion to dismiss or for summary judgment. ber 10, 1995). Complaint alleging sex, age, and handicap Board of Governors v. Interamericas Investments, Ltd., No. discrimination in employment. 96-7108 (D.C. Cir., filed June 14, 1996). Appeal of district Kuntz v. Board of Governors, No. 95-1495 (D.C. Cir., filed court ruling granting, in part, the Board's application to September 21, 1995). Petition for review of Board order enforce an adminstrative investigatory subpoena for docu- dated August 23, 1995, approving the applications of The ments and testimony. Appellants' motion for a stay of the Fifth Third Bank, Cincinnati, Ohio, to acquire certain assets district court ruling was denied on September 12, 1996. and assume certain liabilities of 12 branches of PNC Bank, Interamericas Investments, Ltd. v. Board of Governors, No. Ohio, N.A., Cincinnati, Ohio, and to establish certain 96-60326 (5th Cir., filed May 8, 1996). Petition for review branches. The Board's motion to dismiss was filed on of order imposing civil money penalties and cease and October 26, 1995. desist order in enforcement case. Petitioners' brief was filed Lee v. Board of Governors, No. 95^-134 (2nd Cir., filed on July 26, 1996, and the Board's brief was filed on August 22, 1995). Petition for review of Board orders dated September 27, 1996. On August 20, petitioners' motion for July 24, 1995, approving certain steps of a corporate reorgaa stay of the Board's orders pending judicial review was nization of U.S. Trust Corporation, New York, New York, denied by the Court of Appeals. and the acquisition of U.S. Trust by Chase Manhattan Kuntz v. Board of Governors, No. 96-1137 (D.C. Cir., filed Corporation, New York, New York. On September 12, April 25, 1996). Petition for review of a Board order dated 1995, the court denied petitioners' motion for an emergency March 25, 1996, approving an application by CoreStates stay of the Board's orders. The Board's brief was filed on Financial Corp., Philadelphia, Pennsylvania to acquire Me- April 16, 1996. ridian Bancorp, Inc., Reading, Pennsylvania. The Board's Beckman v. Greenspan, No. 95-35473 (9th Cir., filed May 4, motion to dismiss was filed on June 3, 1996. 1995). Appeal of dismissal of action against Board and Kuntz v. Board of Governors, No. 96-1079 (D.C. Cir., filed others seeking damages for alleged violations of constitu- March 7, 1996). Petition for review of a Board order dated tional and common law rights. The appellants' brief was February 7, 1996, approving applications by The Fifth filed on June 23, 1995; the Board's brief was filed on Third Bank, Cincinnati, Ohio, and The Firth Third Bank of July 12, 1995. Columbus, Columbus, Ohio, to acquire certain assets and Money Station, Inc. v. Board of Governors, No. 95-1182 assume certain liabilities of 25 branches of NBD Bank, (D.C. Cir., filed March 30, 1995). Petition for review of a Columbus, Ohio. Petitioner has moved to consolidate the Board order dated March 1, 1995, approving notices by case with Kuntz v. Board of Governors, No. 95-1495. On Bank One Corporation, Columbus, Ohio; CoreStates Finan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1067 cial Corp., Philadelphia, Pennsylvania; PNC Bank Corp., misconduct during his tenure as Chairman of the Board of Pittsburgh, Pennsylvania; and KeyCorp, Cleveland, Ohio, the Bank, including causing the Bank to pay legal fees that to acquire certain data processing assets of National City should have been borne by the Bank's directors individu- Corporation, Cleveland, Ohio, through a joint venture sub- ally, causing the Bank to violate various restrictions on sidiary. On April 23, 1996, the court vacated the Board's lending—in some cases through the use of nominee order. On July 31, 1996, the full court granted the Board's borrowers—and improperly financing a personally-owned suggestion for rehearing en banc, and vacated the April 23 interest in a real estate development with the Bank's funds. panel decision. The ALJ concluded that this misconduct constituted unsafe In re Subpoena Duces Tecum, Misc. No. 95-06 (D.D.C., filed and unsound practices, breaches of fiduciary duty, and January 6, 1995). Action to enforce subpoena seeking pre- violations of law resulting in gain to Hedrick and loss to decisional supervisory documents sought in connection with the Bank. The ALJ found that Respondent Snyder had an action by Bank of New England Corporation's trustee in participated in one of Hedrick's improper transactions by bankruptcy against the Federal Deposit Insurance Corpora- agreeing to act as a nominee borrower to disguise an tion. The Board filed its opposition on January 20, 1995. improper extension of credit to Hedrick, and that miscon- Oral argument on the motion was held July 14, 1995. duct caused loss to the Bank and led to gain by Snyder. The ALJ further found that Hedrick's and Snyder's conduct Board of Governors v. Pharaon, No. 91-CIV-6250 (S.D. New reflected both willful and continuing disregard for the York, filed September 17, 1991). Action to freeze assets of safety or soundness of the Bank as well as personal dishonindividual pending administrative adjudication of civil esty warranting their prohibition from banking. Responmoney penalty assessment by the Board. On September 17, dents have submitted exceptions to these findings, chal- 1991, the court issued an order temporarily restraining the lenging the OCC's characterization of the facts, and in transfer or disposition of the individual's assets. some instances, its authority to bring the action. Based on a review of the record and the arguments raised by the Respondents, the Board rejects these excep- FINAL ENFORCEMENT DECISION ISSUED BY THE BOARD tions for the reasons stated by the ALJ in the Recom- OF GOVERNORS mended Decision, except as specifically noted in this Decision.1 The chief arguments made by the Respondents with In the Matter of regard to each of the transactions that form the basis for the prohibition action are summarized below. As explained Donald E. Hedrick and John K. Snyder below, the Board finds that these arguments do not warrant Rushville National Bank a rejection of the ALJ's recommendation that Hedrick and Rushville, Indiana Snyder should be prohibited from banking. Accordingly, the Board hereby makes its Final Decision, Docket Nos. and adopts the ALJ's Recommended Decision insofar as it relates to the prohibition action, except as specifically OCC-AA-EC-92-176 supplemented or modified herein. The Board therefore OCC-AA-EC-94-94 orders that the attached Orders of Prohibition issue against Respondents prohibiting them from future participation in Final Decision the affairs of any federally-supervised financial institution without the approval of the appropriate supervisory agency. This is an administrative proceeding pursuant to section 8(e) of the Federal Deposit Insurance Act ("FDI I. Statement of the Case Act"), 12 U.S.C. § 1818(e), in which the Office of the Comptroller of the Currency of the United States of Amer- A. Statutory Framework ica ("OCC") seeks to prohibit Donald E. Hedrick and John K. Snyder (the "Respondents") from further partici- 1. Standards for Prohibition Order pation in the affairs of any federally-supervised financial institution as a result of their conduct during their former Under the FDI Act, the ALJ is responsible for conducting affiliations with Rushville National Bank, Rushville, Indian administrative hearing on a notice of intention to proana (the "Bank"). As required by statute, the OCC has hibit participation. 12 U.S.C. § 1818(e)(4). Following the referred the action to the Board of Governors of the Fedhearing, the ALJ issues a recommended decision that is eral Reserve System (the "Board") for final decision. referred to the Board. The parties may then file with the The proceeding comes before the Board in the form of a Board exceptions to the ALJ's recommendations. The 186-page Recommended Decision by Administrative Law Board makes the final findings of fact, conclusions of law, Judge ("ALJ") Walter J. Alprin, issued following an administrative hearing held in phases between May 1993 and April 1995, and the filing of post-hearing briefs by the 1. The Board does not reach, and makes no conclusions regarding, parties. In the Recommended Decision, the ALJ found that the ALJ's recommendations concerning Hedrick's alleged securities Respondent Hedrick had engaged in a variety of banking fraud. See Recommended Decision ("RD") 102-121. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1068 Federal Reserve Bulletin • November 1996 and determination whether to issue an order of prohibition. lowed for "expenses, penalties or other payments incurred Id.; 12 C.F.R. 263.40. in an administrative proceeding or action instituted by an The substantive basis for an FDI Act prohibition order appropriate bank regulatory agency which proceeding or requires that the Board must make each of three findings: action results in a final order assessing civil money penal- (1) there must be a specified type of misconduct— ties or requiring affirmative action by an individual violation of law, unsafe or unsound practice, or breach or individuals in the form of payments to the bank." of fiduciary duty; 12 C.F.R. 7.5217(b). (2) the misconduct must have a prescribed effect— financial gain to the respondent or financial loss or other B. Procedural History damage to the institution; and (3) the misconduct must involve culpability of a certain The OCC issued Notices of Intention to Prohibit Further degree—personal dishonesty or willful or continuing Participation ("Prohibition Notices") against Respondents disregard for the safety or soundness of the institution. Hedrick and Snyder on November 12, 1992, and April 18, 1993, respectively. RD 1-2. The OCC also brought actions 2. Statutory and Regulatory Lending Restrictions against Hedrick and Snyder seeking civil money penalties and actions against Hedrick and another director for affirmative relief, including restitution.2 The final decision as to A number of laws and regulations restrict banks' transacthese non-prohibition actions is statutorily assigned to the tions with affiliates, insider lending, and concentrations of Comptroller. The Board takes official notice that the Compcredit. troller issued his Decision and Order on August 19, 1996, a. Affiliate Transaction Limits. Section 23A of the Fedordering Hedrick to pay a civil money penalty of $250,000 eral Reserve Act restricts the volume of transactions beand restitution of $451,686, Snyder to pay a civil money tween a bank and its affiliates, requires that extensions of penalty of $25,000, and the other director to pay restitution credit by a bank to an affiliate meet specific collateral in the amount of $139,605. requirements, and requires generally that affiliate transactions be on terms and conditions that are consistent with safe and sound banking practices. 12 U.S.C. § 371c. Discussion b. Insider Lending Limits. Regulation O and commensu- 1. Relevant Persons and Institutions rate regulations of the OCC for national banks implement statutory restrictions on extensions of credit from banks to Rushville was at all times relevant to this proceeding a individuals who are bank "insiders," i.e., individuals who national bank subject to supervision by the OCC. RD 4. It are bank executive officers (including chairman of the was declared insolvent and closed on December 18, 1992. board), directors, or principal shareholders, as well as with Respondent Hedrick served as chairman of the board their "related interests". 12 U.S.C. §§ 375a, 375b; and director of the Bank from May 21, 1985 to Novem- 12 C.F.R. parts 31, 215. These restrictions place absolute ber 12, 1992 (RD 5). Hedrick was a 50 percent owner of and relative limits on extensions of credit to individual the bank holding company that owned the Bank until 1989, insiders and to all insiders in the aggregate, and also when, through one of the transactions discussed below, he impose reporting and approval requirements for such transbecame the principal shareholder. Hedrick was also presiactions. See 12 U.S.C. § 375a; 12 C.F.R. 31.2, 215.4(b)(1). dent of the Bank from June 1989 to June 1991. RD 30. An extension of credit is considered made to an insider Respondent Snyder was a director of the Bank at all to the extent that the proceeds are transferred to the insider times relevant to the charges against him and was Viceor are used for the tangible economic benefit of the insider. Chairman of the board of directors for a portion of that 12 C.F.R. 215.3(f). time. RD 5. c. Concentration of Credit Limits. Another restriction addresses the risks inherent in a concentration of credit 2. Snyder Loan from a national bank to a single borrower. 12 U.S.C. § 84. Under this section, the total loans and other extensions of In 1988 and early 1989, Hedrick owned 50 percent of the credit to any single borrower in general may not exceed stock in Hoosier Bancorp ("Hoosier"), the holding comfifteen percent of a national bank's unimpaired capital and pany that owned 87 percent of the stock of the Bank. surplus. RD 49. The other 50 percent was owned by Philip Schwab, a bank director, who pledged the shares as security for 3. Indemnification Limits loans. In 1988 and early 1989, Schwab became involved in personal bankruptcy proceedings that tied up his Hoosier An OCC regulation generally permits banks to provide in shares. RD 50. Hedrick owned an option to acquire their articles of association for the indemnification of direc- Schwab's Hoosier shares. RD 50. tors, officers or employees for expenses reasonably incurred in actions arising out of the performance of their official duties. 12 C.F.R. 7.5217(a). The regulation speci- 2. The OCC's charges against other individuals affiliated with the fies, however, that such indemnification shall not be al- Bank were settled prior to hearing. RD 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1069 There were two encumbrances on Schwab's shares. The executed a written agreement (the "Hedrick/Snyder Agreesenior lien was held by Summit Bank of Fort Wayne, ment") whereby Hedrick would make periodic payments Indiana, which also had possession of Schwab's stock, to to Snyder that corresponded in time and amount to the secure a $375,000 loan on which Hedrick was the guaran- interest and principal amounts due to the Bank on the tor or co-signer. RD 50. The junior lien on the stock was Snyder loan. RD 57; OCC Ex. 1. The agreement also called held by the Bank to secure a $300,000 loan. RD 50; OCC for Snyder to transfer the 7,500 shares back to Hedrick, in Ex. 19. Hedrick secured release of Schwab's Hoosier amounts proportionate to each principal payment made on shares in the bankruptcy proceeding by arguing, in part, the Snyder loan. OCC Ex. 1. Hedrick was to make paythat the Bank was experiencing regulatory criticism for ments on the Snyder loan if Snyder were unable to make nonpayment of the loan secured by the stock. OCC Ex. 21. them. Hedrick Tr. 1927. Hedrick did not inform the board When he acquired Schwab's Hoosier shares, Hedrick as- of directors of the nature of the Hedrick/Snyder Agreesumed the Schwab loan from Summit on which he was ment. RD 57; OCC Ex. 15; Hanni Tr. 2180-81. In practice, guarantor and began making payments on the loan to Hedrick made payments on the Snyder loan directly to the Summit. RD 52; Joint Stipulation ("Jt. Stip.") 68. Hedrick Bank. RD 58.5 knew that he could not personally assume the Bank's loan In 1991, when Hedrick could not make a payment on to Schwab because legal limits on loans to executive time, Hedrick and Snyder altered the terms of their agreeofficers ("insider lending restrictions") prevented him from ment to defer the dates of payment to Snyder. RD 58; doing so. Hedrick Tr. 1762, 2031. Instead, on Decem- Snyder Tr. 35-36. Shortly thereafter, the Bank, with ber 15, 1989, the Bank originated a $300,000 loan to Hedrick voting, restructured the terms of Snyder's loan Snyder, then a bank director. RD 53; OCC Ex. 16. Snyder (the "Restructure"), requiring only a single partial payused the proceeds to pay off $300,000 of the Schwab loan. ment at maturity, with no specific plan to retire the debt. RD 53. The Bank charged off the remaining $5,042 in RD 59; OCC Ex. 4, 30. Later, on April 6, 1992, the principal, releasing its junior lien on the stock even though Hedrick/Snyder agreement was again amended to reschedthe remaining $76,678 in interest remained unpaid, thereby ule the amounts due under the agreement, and the board of removing an encumbrance on the shares owned by directors, with Hedrick voting, then approved a parallel Hedrick. RD 53.3 extension of the date for payment to the Bank of the The note that Snyder executed to the Bank as evidence principal due on the Snyder loan. RD 61; OCC Ex. 33. of the loan stated that the loan was a consumer loan for the No further payments on the Snyder loan were made. purpose of "investment in holding company." The loan RD 61. On December 18, 1992, when the Bank was was secured by a coin collection, carried a 13 percent declared insolvent and closed, the Bank charged off interest rate, and matured in three years. RD 53. The $260,000 in principal on the Snyder loan and reversed $300,000 loan was undersecured in that, while the Bank accrued interest of $52,081. RD 61. did not obtain an appraisal of the coins pledged as collat- Snyder's repayment of the Schwab loan with the proeral, Snyder's contemporaneous financial statement ceeds of the Snyder loan was a device that benefitted showed the coins' value to be $40,000. RD 54; OCC Ex. 3. Hedrick because it enabled him to acquire the Hoosier The loan terms required semi-annual interest-only pay- shares when he knew that he was legally precluded from ments in 1990 and semi-annual principal and interest pay- assuming the Schwab loan encumbering those shares. RD ments beginning in 1991 and continuing until the maturity 61. The Restructure of the Snyder loan benefitted Hedrick of the loan in December 1992. Snyder's contemporaneous by easing the repayment schedule to the Bank, and nomifinancial statement and income tax statements showed in- nally Hedrick's obligations to Snyder, when Hedrick was sufficient income to make the necessary payments without unable to make the required payments. RD 61-62. selling his other assets. RD 54—55; OCC Ex. 3, 5; Lewis Both the initiation and the Restructure of the Snyder Tr. 1061. The board of directors approved the Snyder loan loan caused the Bank to violate legal limits on loans to by a unanimous voice vote, with Hedrick present. RD 55; executive officers.6 The loan was attributable to Hedrick OCC Ex. 15. for purposes of lending limits because, under the applica- At about the same time, Hedrick transferred 7,500 Hoo- ble regulation: "An extension of credit is considered made sier shares (out of the 38,161 shares that he owned but that were in Summit's possession) to Snyder. RD 56. In his testimony, Hedrick made clear that these shares were not 5. Through a related company, Hedrick made payments of $19,447 on July 6 and December 28, 1990, RD 58, and on July 24, 1991. purchased by Snyder, but were given to him by Hedrick. RD 60-61. Hedrick claimed the interest payments on the Snyder loan Hedrick Tr. 1923.4 Shortly thereafter, Hedrick and Snyder as tax-deductible loan interest. RD 61. Snyder did not deduct the interest payments on his income tax return. RD 61. 6. Loans and other extensions of credit attributable to Hedrick after 3. While there is no evidence that any affirmative action was taken the Snyder loan was made totaled about $358,383, causing the Bank to release the lien, the loan that the lien secured was repaid and no to exceed the individual insider lending limit by approximately action was taken to pledge the shares to secure the Snyder loan. Cf. $275,983. RD 62; OCC Ex. 35. Loans and other extensions of credit Lewis Tr. 1023-24. attributable to Hedrick after the Restructure totaled about $391,520, 4. This arrangement makes clear that the Snyder loan was not, in which exceeded the individual insider lending limit by about $342,770 fact, for the purpose of investing in the holding company, as Snyder's and exceeded the Bank's aggregate insider lending limit by $99,020. note stated. RD 63; OCC Ex. 38. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1070 Federal Reserve Bulletin • November 1996 to an insider to the extent that the proceeds are transferred nominee nature of the loan, which was inherently decepto the insider or are used for the tangible economic benefit tive, refutes the suggestion that the loan was legitimately of the insider." 12 C.F.R. 215.3(f). Here, Hedrick not only believed to be entirely for the benefit of the Bank. RD 78. received the tangible benefits of the extension of credit The peculiar characteristics of the Hedrick/Snyder through the payment of the amount due on the Schwab Agreement also rebut the argument that the arrangement loan and the release of the junior lien on the stock he was generally known and endorsed by Bank and OCC owned, but he functioned as the borrower in all but name. personnel. As an OCC examiner testified, he heard of the Snyder received no direct benefit from the loan, since the "buy-sell" agreement between Hedrick and Snyder, and proceeds were immediately devoted to retiring the Schwab understood it to give Hedrick an option on Snyder's Hooloan for Hedrick's benefit, the 7,500 shares of stock were sier stock, so that the stock would not "fall in unfriendly to be returned to Hedrick as he paid down the loan, and the hands." Holland Tr. 2244-45. Accordingly, knowledge of shares were worth less than the $300,000 liability he under- the existence of the Snyder loan and the Hedrick/Snyder took. Snyder testified that he did not expect to make Agreement, since it was consistent with the assumption payments on the loan (Snyder Tr. 31), testimony supported that Snyder was the substantive borrower on the loan and by his financial position and by the fact that Hedrick in fact that he had merely given Hedrick a right of first refusal on made payments on the loan directly. RD 79-80. The loan's the stock securing the loan, does not negate the deceptive terms were modified when Hedrick, not Snyder, had diffi- purpose and effect of the arrangement. culty making the payments. Hedrick, but not Snyder, de- The lending limit violations caused by the Snyder loan ducted the interest on his income taxes. Accordingly, it is were exacerbated by further extensions of credit to Hedrick clear that the loan was made for Hedrick's benefit and is that expanded the scope of his violations. On March 26, properly attributable to him for purposes of insider lending 1991, the Bank made a $50,000 loan to Hedrick that restrictions. It is also clear that Snyder's involvement was represented further violations of the insider lending and that of a nominee to disguise the economic and legal concentration of credit restrictions.7 Then, on Septemrealities of the loan to Hedrick. ber 24, 1991, the Bank extended a $150,000 line of credit The ALJ found that Hedrick repaid Snyder for his partic- to Hedrick, and the next day advanced $36,000 to Hedrick ipation in the Snyder Loan by appointing him Vice- under that line of credit. RD 65.8 Respondents except to Chairman of the board of directors two months after the these findings on the ground that the violations are continloan was made, a position that carried with it some addi- gent on the finding that the Snyder loan is attributable to tional income and health insurance. RD 81. The ALJ noted Hedrick, which the Board rejects for the reasons stated that Snyder had preexisting health problems and could not above. Hedrick also excepts on the ground that the position obtain other coverage, so that employer-paid health insur- of chairman of the board is not an "executive officer" for ance was a very valuable benefit. RD 82. purposes of Regulation O, an argument that is refuted by In their exceptions, Respondents essentially argue that the plain terms of the regulation. See 12 C.F.R. 215.2(e)(1) the Snyder loan was not an extension of credit to Hedrick ("executive officer" defined to include chairman of the but rather the benign assumption of a nonperforming loan board unless excluded from participation by formal acby a qualified investor for the benefit of the Bank. Excep- tion). tions 18-24. Respondents argue that Snyder incurred the In addition, Hedrick engaged in another nominee loan indebtedness to protect the Bank from a loss on the Schwab arrangement where he received the benefit of a loan made loan and that Hedrick received no benefit from the loan. nominally to Virgil Parks, the manager of Sand Dune Resp. Exceptions 17-24. Respondents also argue that the Shores, a Florida time share development in which Hedrick nominee arrangement was not deceptive because bank was involved. After the loan was made, the proceeds were personnel and OCC examiners were aware of the arrange- used to pay down the amount outstanding on one of ment. Hedrick's loans.9 RD 70, 94; Jt. Stip. 14. The loan, accord- The Board adopts the ALJ's rejection of these arguments. First, there is no contemporaneous evidence that the extension of credit was for the purpose of protecting the 7. The ALJ found that the extension of credit caused the total of loans and other extensions of credit outstanding to Hedrick to exceed Bank, since it was labelled a consumer loan for investment the Bank's individual insider lending limit by $344,395 and the in a holding company. RD 77. Furthermore, the economic aggregate insider lending limit by $108,770. The total also exceeded realities of the loan undercut the argument, since Snyder the Bank's limit on loans to one borrower by about $43,070. RD 64. did not have the liquid assets to make the payments due on 8. The ALJ found that loans and other extensions of credit attributthe loan and showed no disposition to liquidate his other able to Hedrick after the $36,000 advance exceeded the Bank's limit to one borrower by about $22,865, exceeded the Bank's individual assets to make the payments. Instead, the Bank in subinsider lending limit by about $438,678 and exceeded the Bank's stance had to look to Hedrick for repayment of the loan. aggregate insider lending limit by $188,678. RD 66-67. This not only violated various restrictions on insider lend- 9. This caused Hedrick's outstanding loan totals to remain constant, ing, but was ultimately futile, since Hedrick was able to so that there was no further insider lending violation. But the ALJ manipulate the terms of his repayment and caused the found that the Bank lost value on the transaction because the loan purported to be secured by eight time share units in Sand Dune Bank to suffer a loss of $260,000 in principal and $52,000 Shores, of which five had previously been assigned to the Bank. When in accrued interest on the Snyder Loan. Furthermore, the the Parks loan was ultimately repaid by the Sand Dunes Shores Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1071 ingly, is a further illustration of the manner in which 3. Directors' Legal Fees Hedrick casually shifted money between the Bank, his own accounts, and those of his business associates. Accord- Apart from the Snyder loan transaction, the Board also ingly, the Board rejects the Respondent's exception that concludes that Hedrick is subject to prohibition in conneccharacterizes the OCC's charges in this respect as making tion with the diversion of Bank resources to pay the legal a "mountain out of a molehill". Exceptions at 26-27. expenses of directors in contesting an OCC action seeking The Board adopts the ALJ's conclusions of law with the imposition of civil money penalties. The Bank's payrespect to the Snyder loan. The ALJ found that the Responment of those fees violated an OCC regulation that strictly dents' actions satisfied the misconduct element in that the limits the circumstances under which a bank may reimloan represented a breach of fiduciary duty, an unsafe and burse such fees. The OCC regulation generally permits a unsound banking practice, and various violations of the bank to provide in its articles of association for the indembanking laws regarding lending limits. RD 147, 153. The nification of directors, officers or employees for expenses ALJ also found that Snyder breached his fiduciary duty to reasonably incurred in actions arising out of the perforthe Bank by allowing himself to be used as a nominee for mance of their official duties. 12 C.F.R. 7.5217(a). The Hedrick and not disclosing to the Bank the true purpose of regulation specifies, however, that such indemnification the loan. RD 154. The Board agrees that it is an unsafe or shall not be allowed for "expenses, penalties or other unsound practice and a breach of fiduciary duty, as well as a violation of law,10 to undertake a nominee loan scheme in payments incurred in an administrative proceeding or acwhich a loan is made for the benefit of an undisclosed tion instituted by an appropriate bank regulatory agency person, thus preventing the bank from assessing the true which proceeding or action results in a final order assessrisk or legal status of the loan. United States v. Olson, 825 ing civil money penalties or requiring affirmative action by F.2d 121, 123 (7th Cir. 1987), citing United States v. an individual or individuals in the form of payments to the Angelos, 763 F.2d 859, 861 (7th Cir. 1985); United States bank." 12 C.F.R. 7.5217(b). v. Hoffman, 1996 WL 469901 *3 (4th Cir. 1996); Feingold The ALJ found that Hedrick violated this regulation by v. United States, 49 F.3d 437, 440 (8th Cir. 1995); United negotiating the terms of legal representation in connection States v. Krepps, 605 F.2d 101 (3d Cir. 1979). This particu- with administrative charges brought by the OCC in 1985. lar loan was also unsafe or unsound in that it was severely In that 1985 action, the OCC charged that the Bank had not undercollateralized. complied with the terms of a cease and desist order previously imposed by consent, and brought a cease and desist The ALJ found that the Snyder loan satisfied the effects action against the Bank accompanied by civil money penrequirement in that the Bank lost $260,000 in principal and alty assessments of $15,000 against Hedrick and $10,000 $52,081 in accrued interest on the Snyder loan, while each against five other directors. RD 8; OCC Ex. L-5. The Hedrick benefitted by securing the release of the Bank's Bank retained a law firm, Hartke & Hartke, to contest both lien on the Hoosier stock owned by Hedrick. RD 155. The the cease and desist charges on behalf of the Bank and the ALJ found that Snyder benefitted by receiving appointment civil money penalty actions on behalf of the individual to the vice-chairmanship of the board of directors with a directors. Jt. Stip. 9, 10. The OCC withdrew its cease and salary increase and health insurance benefits. RD 156. desist action in March, 1986. At that time, the Bank owed The ALJ found that the Snyder loan satisfied the culpathe law firm $77,500 in unpaid legal fees. RD 13. The bility requirement as to both Hedrick and Snyder. The ALJ withdrawal of that action left pending only the civil money found that the conduct of both Hedrick and Snyder willful penalty action against the directors, in a cumulative amount and misleading in that they did not disclose to the board of of $65,000. directors the nominee nature of the loan. RD 159. The ALJ The five individual directors agreed to pay a flat fee of found that the continued failure to disclose the nature of $1,500 apiece to Hartke & Hartke for representation in the arrangement at the time of the further extensions of contesting the penalties, but the only payments the individcredit to Hedrick represented a continuing disregard for the uals ever made were $100 apiece by four of the directors, safety and soundness of the Bank by both Hedrick and not including Hedrick. RD 13,43; OCC Ex. L-13. Notwith- Snyder. The ALJ further found that the failure to disclose standing the absence of any pending proceeding against it, represented personal dishonesty by both Snyder and the Bank, pursuant to a 36-month representation agreement Hedrick. RD 160. negotiated by Hedrick, continued for years to pay $6,000 a Accordingly, the Board finds that the Snyder loan transmonth in legal fees plus expenses to Hartke & Hartke for action, standing alone, forms a sufficient basis for the representation of the directors in the civil money penalty prohibition of both Hedrick and Snyder from banking. litigation. RD 16, 19-25. The civil money penalties were sustained by the Comptroller, affirmed on petition for review to the United States Court of Appeals for the Seventh Condominium Association, the Bank thereupon returned to the condo- Circuit, Abercrombie v. Clarke, 920 F.2d 1351 (7th Cir. minium association the time share units that had nominally served as 1990), and left undisturbed by the Supreme Court, which the collateral, including the five that in fact the Bank owned. RD 72; denied certiorari. 502 U.S. 809 (1991). Hedrick made inde- OCC Ex. 61. The ALJ found that the Bank lost the value of the five pendent decisions to authorize the legal fees and expenses time share units. RD 72, 95. 10. See 18 U.S.C. § 656 (willful misapplication of bank funds). for the attempt to seek rehearing in the Seventh Circuit and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1072 Federal Reserve Bulletin • November 1996 the attempt to seek certiorari, even though the Bank was evidence supports Hedrick's awareness that the fee arnot a party to those actions. RD 29, 43^14; Hedrick rangement was improper. Hedrick is the person who nego- Tr. 862. The ALJ concluded that the total of fees and tiated the terms of the fee agreement with the Hartkes. expenses paid by the Bank to contest the directors' civil RD 38. It is clear that Hedrick was made aware of the money penalty action was $139,605. RD 45. The individ- applicable regulation in that an OCC examiner pointedly ual directors never reimbursed the Bank for those fees and left a copy of the regulation with Hedrick in Decemexpenses, as required by regulation. RD 32; OCC Ex. 53.11 ber 1986. RD 38. Furthermore, the Hartkes made reference The ALJ concluded that Hedrick violated the OCC's to the requirements of the regulation in various communiregulation regarding indemnity by negotiating an agree- cations, including a letter advising Hedrick that civil ment with the Hartkes for the purpose of causing the Bank money penalties must be paid by the individual directors, to pay the directors legal fees. RD 38. Under that agree- OCC Ex. L-9, and a letter advising that any fee amounts ment, the Bank improperly advanced to the directors pay- advanced by the Bank on behalf of individual directors ments for legal fees and expenses.12 Hedrick also failed to were subject to reimbursement by the directors if the OCC reimburse the Bank for fees and expenses undertaken on prevailed. OCC Ex. L-32. Hedrick's awareness of the his behalf after the OCC prevailed in its civil money regulation's requirements is also displayed by the considerpenalty litigation, failed to take any action to cause the ation given by the board of directors to amending the other directors to make reimbursement, and concealed the Bank's articles of association to provide for indemnificanature of the payments from the OCC. RD 46-48. The ALJ tion, as required by the regulation. RD 39; OCC Ex. L-7. It further found that the representation agreement, the ad- is also clear that Hedrick was aware that the $1,500 nomivance of funds on behalf of the directors, and the failure to nal amount charged the individual directors as a "flat fee" reimburse represented unsafe and unsound practices, espe- was a fiction, since he knew the amounts expended by the cially in light of the Bank's financial condition and the Bank after the Bank was no longer a party to the OCC failure to ascertain whether the directors possessed the action and he knew that the Hartkes had not been paid by ability to repay the advances. RD 146-147. the directors. RD 48. Accordingly the Board adopts the The ALJ found that the Bank sustained loss13 as a result ALJ's rejection of the argument that advice of counsel served to negate Hedrick's misconduct with respect to the of the improper representation agreement, RD 145, and Bank's payment of fees for the directors. that Hedrick benefitted from the Bank's payment of fees and expenses on his behalf. RD 155.14 The ALJ found that The Board also finds that this charge is not precluded by Hedrick's conduct in negotiating the Hartke fee arrange- application of the five-year statute of limitations in ments and causing the Bank to pay the directors' legal fees 18 U.S.C. § 2462. While the Board doubts that the statute evidenced willful and continuing disregard for the safety of limitations applies to banking administrative enforceand soundness of the Bank. RD 158. The ALJ noted that ment actions generally,15 and questions in particular its Hedrick's subjective appreciation of the wrongfulness of application to the remedial sanction of prohibition,16 the his actions could reasonably be inferred from his attempts Board concludes that these issues need not be resolved to disguise the nature of the Hartke fee agreement. RD 158; here because, on these facts, the prohibition cause of action see RD 47-48. in connection with the legal fees issue was not time-barred. In his exceptions, Hedrick argues that he reasonably Because the OCC issued its prohibition notice against relied upon the advice of counsel in negotiating the legal Hedrick on November 12, 1992, the statute of limitations, representation and that the allegations are time-barred under 18 U.S.C. § 2462 because the initial actions with 15. In In re Interamericas Investments Ltd., 82 Federal Reserve respect to the fee arrangement took place more than five Bulletin 609, 617 n.17, the Board questioned whether section 2462 years before the notice of charges was issued by the OCC. should be applied to enforcement actions by the banking agencies The Board denies both exceptions. under the Bank Holding Company Act and the Federal Deposit Even if advice of counsel were a valid defense to the Insurance Act. The Board found it unnecessary to answer that quescharges, it would be inapplicable here because substantial tion, however, since section 2462 was found not to bar the action for factual reasons. Id. at 617. 16. The limitations statute reads, in relevant part: "Except as otherwise provided by Act of Congress, an action, suit or proceeding 11. The Hartkes settled an enforcement action by the OCC by for the enforcement of any civil fine, penalty, or forfeiture, pecuniary agreeing to a suspension from practice before the OCC for two years or otherwise, shall not be entertained unless commenced within five and civil money penalties totalling $35,000. RD 36. years from the date when the claim first accrued. ..." 28 U.S.C. 12. The Bank's articles of association never provided for indemnity, § 2462. The Board believes that the remedy of prohibition, which is a prerequisite to the Bank's advance of legal fees to the directors for designed to protect the banking industry against individuals found to their individual litigation. 12 C.F.R. 7.5217(a). RD 39. have engaged in misconduct of a certain sort, is not a "fine, penalty or 13. The Board need not consider OCC Enforcement Counsel's forfeiture" within the meaning of the statute. Cf. U.S. v. Stoller, exceptions to the amount of the loss determined by the ALJ, since the 78 F.3d 710 (1st Cir. 1996) (prohibition order is remedial and not a precise amount of the loss is not relevant to the prohibition determina- "punishment" within the meaning of the double jeopardy clause); tion. See Exceptions at 2-5. Federal Election Commission v. Nat' I Republican Senatorial Commit- 14. The Board adopts OCC Enforcement Counsel's exceptions in tee, 877 F. Supp. 15, 21 (D.D.C. 1995) (injunctive actions outside the nature of technical corrections that the ALJ used "Hartke" where scope of section 2462); but cf. Johnson v. SEC, 87 F.3d 484 (D.C. Cir. he meant "Hedrick" in two instances on page 155 of the Recom- 1996) (SEC broker suspension constitutes punishment and thus is mended Decision. Exceptions at 10. subject to section 2462). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1073 even if applicable, does not bar any cause of action that proper affiliate transaction and a new violation of 12 U.S.C. accrued after November 12, 1987. Here, while the ad- § 371c. See 12 U.S.C. § 371c(a)(2). vances were at all times unauthorized, this prohibition Similarly, the Bank upstreamed $47,134 in insurance action did not fully accrue until the directors failed to premiums to Hoosier that Hoosier was unable to reimburse reimburse the Bank following the exhaustion of appeals or collateralize in violation of 12 U.S.C. § 371c. RD 96; when the Supreme Court denied certiorari in October 1991. Jt. Stip. 36, 38. In response to OCC criticism in May 1990, Had the OCC brought its charges before then, the unre- Hedrick in December 1990 pledged two deposit accounts solved contingency of reimbursement would have rendered and another director pledged shares of stock to secure judgments as to the degree of loss and nature of culpability Hoosier's loan. RD 97. The stock pledge and one of tentative. The Board therefore finds that the prohibition Hedrick's account pledges were released when the balance cause of action for the unreimbursed legal fees did not in Hedrick's other account became sufficient to secure the accrue more than five years before the prohibition notice loan to Hoosier. RD 97. The Bank retained a $50,000 hold was issued. on that account. RD 97. One week after the OCC had been Furthermore, the Board adopts the ALJ's conclusion that informed of the substituted collateral, Hedrick ordered the various actions taken by Hedrick to disguise the payment hold on his account overridden to gain access to a portion of legal fees by the Bank constituted fraudulent conceal- of the frozen funds. RD 97, 101; Jt. Stip. 39. The withment that tolled the running of the statute of limitations. drawal of funds from the account left the balance of the RD 46-48.17 The ALJ found that Hedrick misled OCC loan to Hoosier undersecured in another violation of examiners as to the nature of the services being provided 12 U.S.C. § 371c. RD 98. The violation was later cured by for the fees, that the terms of the representation were not an additional deposit by Hedrick. RD 102. fully known within the Bank, and that Hedrick continued The ALJ found that the transactions were unsafe and to conceal the purposes of the retainer agreement through- unsound, RD 149, and breaches of Hedrick's fiduciary out the OCC's investigation. RD 46-48. Accordingly, the duty to the Bank, RD 152, as well as violations of law. The statute of limitations did not preclude this basis for prohibi- ALJ found that the transactions caused financial gain to tion.18 Hedrick in that he was Hoosier's principal shareholder and benefitted from the extinction of a Hoosier debt. RD 156. 4. Transactions With Affiliates Hedrick also received financial gain from overriding the hold on his account to gain access to his funds. RD 156. In 1989, the Bank "upstreamed" $82,000 to Hoosier, its The ALJ found that Hedrick acted with personal dishonparent bank holding company, to be used for income tax esty by claiming that the first affiliate transaction involving payments. Jt. Stip. 32, 33. Because the Bank was operating Hoosier was corrected, thereby misleading the OCC and at a loss, Hoosier was legally obligated to reimburse the the Board. RD 160. He also found that Hedrick displayed Bank for any tax benefit. RD 95-96. Hoosier's inability to willful and continuing disregard for the safety and soundreimburse the Bank had the effect of creating an unsecured ness of the Bank in both affiliate transactions. RD 183. loan of $82,000 to an affiliate in violation of 12 U.S.C. Hedrick's exceptions to the Recommended Decision ar- § 371c. RD 96. gue that the affiliate transactions represent yet another The OCC instructed the Bank to correct the violation. instance of the OCC's making a "mountain out of a RD 96. In response, Hedrick caused the Bank to make an molehill" by mischaracterizing Hedrick's good-faith copunsecured loan of $50,000 to a director of the Bank, the ing with a difficult financial situation. Exceptions 27-29. proceeds of which were deposited, along with funds from The Board rejects Hedrick's version, and finds that the Hedrick, into a Hoosier account. RD 96, 100. Hoosier used facts with respect to the affiliate transactions underscore those funds to reimburse the Bank, and the Bank reported Hedrick's unwillingness or inability to observe the distincto bank regulators that the violation had been corrected. tions between the Bank's resources and his own. RD 96; Jt. Stip. 35. In effect, then, Hedrick caused the Bank to fund its own repayment. Because Hoosier was the 5. Sand Dune Shores beneficiary of the loan, the loan represented another im- Hedrick held an interest in a time-share apartment complex called Sand Dune Shores. RD 121. The ALJ found that Hedrick caused the Bank to engage in improper transac- 17. In 3M Company (Minnesota Mining and Manufacturing) v. tions that furthered Hedrick's interest in his investment Browner, 17 F.3d 1453 (1994), the D.C. Circuit ruled in a case rather than that of the Bank, while failing to disclose his involving the imposition of penalties by the Environmental Protection personal interest or abstain from voting when the board of Agency that the limitations period applies, not just to court cases to collect penalties already assessed by agencies, but also to the agency directors authorized the Bank to pay the taxes, interest and adjudications themselves. The court noted, however, that the limita- expenses of the development. RD 121. Hedrick also caused tions period might be tolled in cases of fraudulent concealment. the Bank to purchase contracts from other banks to relieve 17 F.3d at 1461 n.15. Hedrick from obligations on guarantees. 18. Of course, as stated above, the Snyder loan transaction, as to Hedrick became the substitute general partner of Sand which there is no limitations issue, independently constitutes a sufficient basis for prohibition. Dune Shores, Ltd. ("SDSL"), a limited partnership, in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1074 Federal Reserve Bulletin • November 1996 1985, after the previous general partner had declared bank- Hedrick argues in his exceptions, first, that the OCC is ruptcy, after SDSL had become delinquent on federal taxes, raising events that occurred more than five years before and after the Bank's compliance committee had directed charges were brought and therefore outside the statute of Hedrick to liquidate his interest in SDSL. RD 121-122; limitations. Exceptions at 32. As before, the Board need Jt. Stip. 48. The Bank held conditional sales contracts on not address the applicability of the statute of limitations to SDSL time-share units valued at about $278,934. RD 122. prohibition actions, since a number of the charged actions Hedrick was the guarantor of conditional sales contracts on took place after November 12, 1987 and therefore within a SDSL time-share units financed by financial institutions five-year period preceding the issuance of the prohibition other than the Bank, aggregating to between $790,000 and notice.19 $1,300,000 by September 1985. RD 133. Hedrick also held Hedrick also vigorously argues that the Sand Dune a number of SDSL time-share units for sale and testified Shores relationship was in the best interests of the Bank, that his personal Sand Dune Shores records were inter- that the actions taken preserved the Bank's investment twined with those of the Bank. Hedrick Tr. 263-64. from foreclosure and protected the Bank against lawsuit. From October 1986 until May 1988, the Bank paid Exceptions at 32-37. Hedrick also argues, citing to his own approximately $407,242 in delinquent property taxes, inter- testimony, that the other directors and Bank personnel were est, and other expenses of SDSL in order to protect its aware of Hedrick's positions with Sand Dune Shores. $214,000 interest in the sales contracts. RD 122-124. In Exceptions at 37-38. return, the Bank received an assignment of SDSL's interest The Board rejects these exceptions, finding that in 102 time-share units, nominally worth over $500,000, Hedrick's role in causing the Bank to pour money into a but ultimately worth far less. RD 124. In at least two of the project in which he had substantial financial exposure meetings where the board of directors voted to authorize represents a classic example of financial self-dealing. Even tax payments to Sand Dune Shores, Hedrick was present if it were true as a matter of fact that other members of the and voting. RD 124. The ALJ found that there was no board of directors were aware of the extent of his involveevidence that the payments for the benefit of SDSL were to ment in the project, that awareness was not documented in avoid lawsuits, and concluded that the payments were board minutes and no measures were taken to insulate instead intended to protect Hedrick against loss. RD 134. Hedrick from voting on decisions that affected his interests. In 1988, the Bank paid $79,869 to another lender for For purposes of this prohibition action, the precise amount additional SDSL time-share sales contracts that had been lost by the Bank is not material, since it is clear that guaranteed by Hedrick, about half of which were character- Hedrick received financial gain from the Bank's support of ized as "bad accounts" with a salvage value of about the project. Accordingly, the Board concludes that the $18,000. RD 126. In 1989, the Bank purchased another Sand Dune Shores transactions constituted yet another 108 SDSL sales contracts from another lender for about independent basis for Hedrick's prohibition. $55,750. RD 127. In each case, the Bank's purchase relieved Hedrick of his liability on his guarantees. RD 126, 6. Summary 127; Jt. Stip. 54, 56. At the board of directors meetings where the purchases were authorized, Hedrick did not The Board concludes that substantial evidence in the record abstain from the vote to purchase the contracts. RD 127; supports the issuance of an order of prohibition against Amy Tr. 1593-95; 1597-99. The ALJ concluded that the Respondent Snyder for his role as a nominee in the Snyder Bank ultimately charged off $406,000 on the Sand Dune loan, and against Respondent Hedrick for his participation Shores relationship, more than it would have lost if it had in the Snyder loan and other lending and affiliate transaclost its interests in the sales contracts through tax foreclo- tion violations, for orchestrating the Bank's payment of sure. RD 131, 137. legal fees and expenses that were the responsibility of the The ALJ found that Hedrick's conflicts of interest vio- directors, and for his self-dealing in transactions related to lated his fiduciary duty and caused the Bank to engage in Sand Dune Shores. unsafe and unsound practices because it lacked the information necessary to make an informed decision about its Conclusion transactions. RD 137. The Bank lost more than $405,000 in Sand Dune Shores outlays and Hedrick received the benefit For the foregoing reasons, the Board orders that the atof being relieved of guarantees valued at between $790,000 tached Order of Prohibition issue. and $1,300,000. RD 157. The ALJ concluded that Hedrick's conduct with respect to Sand Dune Shores represented personal dishonesty and willful and continuing disregard in that: he concealed the true purpose of the Bank's payments on behalf of SDSL; he failed to liquidate his interests in SDSL as directed by the Bank's compliance 19. Board meetings where tax payments on behalf of Sand Dune committee; and he continued to use the Bank to further his Shores were authorized included March 26 and May 17, 1988. own interests and the interests of SDSL while the Bank lost RD 124. The Bank purchased time-share unit sales contracts on which Hedrick was the guarantor on or about October 5, 1988, and June 1, substantial amounts of money. RD 161, 185. 1989. RD 126, 127. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1075 Order of Prohibition 2. This Order, and each provision hereof, is and shall remain fully effective and enforceable until expressly WHEREAS, pursuant to section 8(e) of the Federal De- stayed, modified, terminated or suspended in writing by the posit Insurance Act, as amended, (the "Act") (12 U.S.C. Board. § 1818(e)), the Board of Governors of the Federal Reserve This Order shall become effective upon the expiration of System ("the Board") is of the opinion, for the reasons set thirty days after service is made. forth in the accompanying Final Decision, that a final By Order of the Board of Governors, this 11th day of Order of Prohibition should issue against DONALD E. September, 1996. HEDRICK and JOHN K. SNYDER; NOW, THEREFORE, IT IS HEREBY ORDERED, pur- Board of Governors of the suant to sections 8(b)(3), 8(e), and 8(j) of the Federal Federal Reserve System Deposit Insurance Act, as amended, (12 U.S.C. §§ 1818(b)(3), 1818(e) and 1818(j)), that: WILLIAM W. WILES Secretary of the Board 1. In the absence of prior written approval by the Board, and by any other Federal financial institution regulatory agency where necessary pursuant to section 8(e)(7)(B) of the Act (12 U.S.C. § 1818(e)(7)(B)), DONALD E. HEDRICK and JOHN K. SNYDER are hereby prohibited: FINAL ENFORCEMENT ORDER ISSUED BY THE BOARD (a) From participating in the conduct of the affairs of any OF GOVERNORS bank holding company, any insured depository institution or any other institution specified in subsection National Bank of Greece 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)); Athens, Greece (b) From soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote any proxy, The Federal Reserve Board announced on September 13, consent, or authorization with respect to any voting 1996, the joint issuance with the Federal Deposit Insurance rights in any institution described in subsection Corporation and the Commissioner of Banks for the Com- 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)); monwealth of Massachusetts of a Cease and Desist Order (c) From violating any voting agreement previously against the National Bank of Greece, Athens, Greece, and approved by the appropriate Federal banking agency; or the National Bank of Greece's branch in Boston. (d) From voting for a director, or from serving or acting The Federal Reserve Board also issued jointly with the as an institution-affiliated party as defined in section 3(u) Federal Deposit Insurance Corporation an Order of Assessof the Act, (12 U.S.C. § 1813(u)), such as an officer, ment of a Civil Money Penalty against the National Bank director, or employee. of Greece and its Boston branch. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance A25 Federal fiscal and financing operations DOMESTIC FINANCIAL STATISTICS A26 U.S. budget receipts and outlays All Federal debt subject to statutory limitation Money Stock and Bank Credit All Gross public debt of U.S. Treasury— Types and ownership A4 Reserves, money stock, liquid assets, and debt A28 U.S. government securities measures dealers—Transactions A5 Reserves of depository institutions, Reserve Bank A29 U.S. government securities dealers— credit Positions and financing A6 Reserves and borrowings—Depository A30 Federal and federally sponsored credit institutions agencies—Debt outstanding A6 Selected borrowings in immediately available funds—Large member banks Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local governments and corporations A7 Federal Reserve Bank interest rates A32 Open-end investment companies—Net sales A8 Reserve requirements of depository institutions and assets A9 Federal Reserve open market transactions A3 2 Corporate profits and their distribution A3 3 Domestic finance companies—Assets and Federal Reserve Banks liabilities, and consumer, real estate, and business A10 Condition and Federal Reserve note statements credit All Maturity distribution of loan and security holdings Real Estate Monetary and Credit Aggregates A34 Mortgage markets A35 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base Consumer Installment Credit A13 Money stock, liquid assets, and debt measures A15 Deposit interest rates and amounts outstanding— A36 Total outstanding commercial and BIF-insured banks A3 6 Terms A16 Bank debits and deposit turnover Flow of Funds Commercial Banking Institutions A37 Funds raised in U.S. credit markets All Assets and liabilities, Wednesday figures A39 Summary of financial transactions A40 Summary of credit market debt outstanding Weekly Reporting Commercial Banks— A41 Summary of financial assets and liabilities Assets and liabilities A19 Large reporting banks DOMESTIC NONFINANCIAL STATISTICS A21 Branches and agencies of foreign banks Selected Measures Financial Markets A42 Nonfinancial business activity— All Commercial paper and bankers dollar Selected measures acceptances outstanding A42 Labor force, employment, and unemployment All Prime rate charged by banks on short-term A43 Output, capacity, and capacity utilization business loans A44 Industrial production—Indexes and gross value A23 Interest rates—money and capital markets A46 Housing and construction A24 Stock market—Selected statistics A47 Consumer and producer prices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • November 1996 DOMESTIC NONFINANCIAL STATISTICS- Reported by Nonbanking Business CONTINUED Enterprises in the United States A58 Liabilities to unaffiliated foreigners Selected Measures—Continued A59 Claims on unaffiliated foreigners A48 Gross domestic product and income A49 Personal income and saving Securities Holdings and Transactions A60 Foreign transactions in securities INTERNATIONAL STATISTICS A61 Marketable U.S. Treasury bonds and notes—Foreign transactions Summary Statistics Interest and Exchange Rates A50 U.S. international transactions—Summary A51 U.S. foreign trade A61 Discount rates of foreign central banks A51 U.S. reserve assets A61 Foreign short-term interest rates A51 Foreign official assets held at Federal Reserve A62 Foreign exchange rates Banks A52 Selected U.S. liabilities to foreign official A63 GUIDE TO STATISTICAL RELEASES AND institutions SPECIAL TABLES Reported by Banks in the United States SPECIAL TABLES A52 Liabilities to and claims on foreigners A64 Assets and liabilities of commercial banks, A53 Liabilities to foreigners March 31, 1994-June 30, 1996 A55 Banks' own claims on foreigners A104 Terms of lending at commercial banks, August 1996 A56 Banks' own and domestic customers' claims on foreigners A108 Assets and liabilities of U.S. branches and agencies A56 Banks' own claims on unaffiliated foreigners of foreign banks, June 30, 1996 A57 Claims on foreign countries— Combined domestic offices and foreign branches Aii2 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 of include not fully guaranteed issues) as well as direct obligarounding. tions of the Treasury. "State and local government" also in- Minus signs are used to indicate (1) a decrease, (2) a negative cludes municipalities, special districts, and other political figure, or (3) an outflow. subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • November 1996 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1995 1996r 1996r MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q3 Q4 Ql Q2 Apr. May June July Aug. Reserves of depository institutions1 1 Total -1.5 -6.9 -7.9 -6.4 -11.7 -20.8 -2.5 -20.3 -21.1 2 Required -2.5 -7.7 -8.5 -5.7 -11.6 -15.4 -9.1 -18.8 -19.2 3 Nonborrowed -2.4 -6.4 -6.5 -7.6 -13.2 -21.6 -8.3 -20.0 -20.5 4 Monetary base3 1.7 2.7 1.5 2.1 -.6 1.0 5.7 7.6 6.2 Concepts of money, liquid assets, and debt4 5 Ml -1.5 -5.1 -2.7 -.7 -3.3 -6.8 -.5 -8.8 -9.9 6 M2 6.6r 4.1 5.8 3.9 1.8 -2.0 5.3 1.9 3.7 7 M3 7.7r 4.6r 7.1 5.3 1.8 2.7 4.5 2.6 5.1 8 L 8.9r 6.0r 5.0 5.5 5.4 -.9 5.7 3.0 n.a. 9 Debt 5.2r 4.7 5.0 5.6 5.5 4.6 5.0 5.3 n.a. Nontransaction components 10 In M25 10.5' 8.4r 9.6 5.9 4.0 .0 7.7 6.4 9.3 11 In M3 only6 12.2r 6.4r 12.3 10.5 1.5 21.1 1.5 5.3 10.9 Time and savings deposits Commercial banks 12 Savings, including MMDAs 9.0 13.1 22.6 12.7 8.6 4.1 12.3 9.7 16.6 13 Small time7 11.0 4.8 2.5 -2.9 -3.5 -2.9 .6 5.8 6.0 14 Large time8'9 13.2r 19.5r 8.0 17.3 7.5 20.3 18.9 17.0 17.4 Thrift institutions 15 Savings, including MMDAs -7.3 -2.8 -.3 8.1 13.9 5.2 2.9 -.3 -5.2 16 Small time7 4.1 4.9r -2.3 -3.2 -1.7 -2.4 -3.1 -2.7 4.4 17 Large time8 13.7 8.4r 6.4 -3.0 1.6 -9.5 4.8 12.7 7.9 Money market mutual funds 18 Retail 34.6r 16.9r 14.3 10.5 1.7 -5.0 20.0 13.0 14.8 19 Institution-only 27.6 10.3 27.9 8.7 -13.0 -10.3 29.1 16.8 20.4 Repurchase agreements and Eurodollars 20 Repurchase agreements10 -5.0 -14.6 1.4 4.9 -7.8 80.0 -70.7 -24.2 -16.0 21 Eurodollars10 9.4 -6.7r 17.0 12.0 35.6 16.0 9.7 -19.3 13.5 Debt components4 22 Federal 4.4r 2.3 3.0 4.7 4.2 2.0 2.1 6.0 n.a. 23 Nonfederal 5.5r 5.6r 5.7 5.8 6.0 5.5 6.0 5.0 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- amounts held by depository institutions, the U.S. government, money market funds, and ing during preceding month or quarter. foreign banks and official institutions. Seasonally adjusted M3 is calculated by summing large 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with time deposits, institutional money fund balances, RP liabilities, and Eurodollars, each regulatory changes in reserve requirements. (See also table 1.20.) seasonally adjusted separately, and adding this result to seasonally adjusted M2. 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency securities, commercial paper, and bankers acceptances, net of money market fund holdings of component of the money stock, plus (3) (for all quarterly reporters on the "Report of these assets. Seasonally adjusted L is computed by summing U.S. savings bonds, short-term Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose Treasury securities, commercial paper, and bankers acceptances, each seasonally adjusted vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference separately, and then adding this result to M3. between current vault cash and the amount applied to satisfy current reserve requirements. Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial 4. Composition of the money stock measures and debt is as follows: sectors—the federal sector (U.S. government, not including government-sponsored enter- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of prises or federally related mortgage pools) and the nonfederal sectors (state and local depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all governments, households and nonprofit organizations, nonfinancial corporate and nonfarm commercial banks other than those owed to depository institutions, the U.S. government, and noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and foreign banks and official institutions, less cash items in the process of collection and Federal corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, Reserve float, and (4) other checkable deposits (OCDs). consisting of negotiable order of which are derived from the Federal Reserve Board's flow of funds accounts, are breakwithdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, adjusted (that is, discontinuities in the data have been smoothed into the series) and credit union share draft accounts, and demand deposits at thrift institutions. Seasonally month-averaged (that is, the data have been derived by averaging adjacent month-end levels). adjusted Ml is computed by summing currency, travelers checks, demand deposits, and 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail OCDs, each seasonally adjusted separately. money fund balances, each seasonally adjusted separately. M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities deposits—including retail RPs—in amounts of less than $ 100,000), and (3) balances in retail (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and money market mutual funds (money funds with minimum initial investments of less than term) of U.S. addressees, each seasonally adjusted separately. $50,000). Excludes individual retirement accounts (IRAs) and Keogh balances at depository 7. Small time deposits—including retail RPs—are those issued in amounts of less than institutions and money market funds. Seasonally adjusted M2 is calculated by summing $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions savings deposits, small-denomination time deposits, and retail money fund balances, each are subtracted from small time deposits. seasonally adjusted separately, and adding this result to seasonally adjusted Ml. 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) booked at international banking facilities. balances in institutional money funds (money funds with minimum initial investments of 9. Large time deposits at commercial banks less those held by money market funds, $50,000 or more), (3) RP liabilities (overnight and term) issued by all depository institutions, depository institutions, the U.S. government, and foreign banks and official institutions. and (4) Eurodollars (overnight and term) held by U.S. residents at foreign branches of U.S. 10. Includes both overnight and term. banks worldwide and at all banking offices in the United Kingdom and Canada. Excludes 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 1996 July Aug. July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 420,911 423,813r 419,280" 424,567r 423,864 424,564 U.S. government securities2 2 Bought outright—System account 382,000 383,166 385,637 383,393 382,763 383,049 382,448 384,392 387,926 3 Held under repurchase agreements 4,456 5,677 3,734 6,422 1,794 6,078 6,808 3,044 2,189 Federal agency obligations 4 Bought outright 2,401 2,359 2,336 2,351 2,351 2,336 2,336 2,336 2,336 6 5 Ac H ce e p ld ta n u c n e d s e r repurchase agreements 5240 449 0 8990 1,0100 4140 4070 8990 7380 5150 Loans to depository institutions 7 Adjustment credit 185 92 17 5 16 261 21 11 6 8 Seasonal credit 1900 2850 3110 2830 2990 3080 2840 2950 3190 9 Extended credit 10 Float 380 470r 459 385 455r 272' 438 345 496 11 Other Federal Reserve assets 30,775 31,314 31,674 31,349 31,188 31,856 32,421 32,703 30,777 12 Gold stock 11,051 11,050 11,050 11,050 11,050 11,050 11,050 11,050 11,050 13 Special drawing rights certificate account 10,168 10,168 9,718 10,168 10,168 10,168 9,718 9,718 9,718 14 Treasury currency outstanding 24,482 24,543 24,606 24,539 24,553 24,567 24,581 24,595 24,609 ABSORBING RESERVE FUNDS 15 Currency in circulation 423,445 428,381 429,507 428,958 427,422 427,164 428,677 429,673 429,499 16 Treasury cash holdings 281 269 268 268 267 258 262 268 268 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,162 5,304 5,107 5,464 5,260 5,384 5,069 4,781 5,129 18 Foreign 177 180 186 176 173 164 189 186 181 19 Service-related balances and adjustments . . 6,161 6,228 6,361 6,002 6,380 6,281 6,307 6,312 6,367 20 Other 330 318 311 342 313 295 313 305 324 21 Other Federal Reserve liabilities and capital . 13,224 13,391 13,993 13,252 13,242 13,885 14,218 13,786 13,842 22 Reserve balances with Federal Reserve Banks' 16,832 15,503r 14,709 16,494 11,994r 16,920r 15,969 13,917 14,332 End-of-month figures Wednesday figures July Aug. July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 425,292 436,332' 432,275 419,952r 436,332r 426,917 425,142 U.S. government securities2 2 Bought outright—System account 383,914 382,378 386,955 383,364 382,967 382,378 383,243 385,806 387,269 3 Held under repurchase agreements 7,086 15,458 4,374 12,700 2,080 15,458 4,854 4,670 3,310 Federal agency obligations 4 6 5 Ac B H ce o e p u ld t g a h n u t c n e o d s u e r t ri r g e h p t u rchase agreements 0 0 2, 2 33 8 6 2 0 2 1 , , 3 2 3 3 6 80 2 1 , , 3 6 5 9 1 00 2,3 7 5 0 1 00 2, 2 3 8 36 20 2,3 6 3 4 6 20 2,3 8 3 9 6 80 2, 6 3 6 3 5 6 0 Loans to depository institutions 7 Adjustment credit 388 1,423 10 9 17 1,423 5 28 12 9 8 E Se x a te s n o d n e a d l c c r r e e d d i i t t 2480 295 0 3290 2950 3100 2950 2830 3100 3280 10 Float -190 510r 201 18 203r 510' 815 -99 254 11 Other Federal Reserve assets 31,458 33,649 31,221 31,848 31,324 33,649 32,367 32,967 30,968 12 Gold stock 11,050 11,050 11,050 11,050 11,050 11,050 11,050 11,050 11,050 13 Special drawing rights certificate account 10,168 10,168 9,718 10,168 10,168 10,168 9,718 9,718 9,718 14 Treasury currency outstanding 24,511 24,567 24,637 24,539 24,553 24,567 24,581 24,595 24,609 ABSORBING RESERVE FUNDS 15 Currency in circulation 424,780 428,715 432,045 428,935 427,693 428,715 429,951 430,353 429,799 16 Treasury cash holdings 280 261 277 269 257 261 268 268 268 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,701 6,836 5,149 5,323 5,211 6,836 4,695 5,449 5,879 18 Foreign 183 166 171 167 167 166 169 177 183 19 Service-related balances and adjustments .. 6,172 6,281 6,276 6,002 6,380 6,281 6,307 6,312 6,367 20 Other 326 278 293 363 291 278 307 308 322 21 Other Federal Reserve liabilities and capital , 13,374 14,817 14,007 13,067 13,194 14,817 13,563 13,662 13,581 22 Reserve balances with Federal Reserve Banks: 18,205 24,76 lr 13,852 23,907 12,530r 24,761' 14,634 15,752 14,121 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 Financial Statistics • November 1996 1.12 RESERVES AND BORROWINGS Depository Institutions' Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1993 1994 1995 1996 Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. 1 Reserve balances with Reserve Banks2 29,374 24,658 20,440 16,792 18,426 19,181 16,753 16,590 15,392r 14,760 2 Total vault cash3 36,818 40,378 42,088 42,115 40,892 40,889 41,146 41,979 42,773 42,517 3 Applied vault cash4 33,484 36,682 37,460 36,957 36,458 36,688 36,382 37,095 37,451 36,876 4 Surplus vault cash5 3,334 3,696 4,628 5,158 4,435 4,201 4,764 4,883 5,322 5,641 5 Total reserves6 62,858 61,340 57,900 53,749 54,884 55,869 53,135 53,685 52,843r 51,635 6 Required reserves 61,795 60,172 56,622 52,898 53,747 54,750 52,275 52,535 51,778 50,671 7 Excess reserve balances at Reserve Banks7 1,063 1,168 1,278 851 1,137 1,120 860 1,150 l,065r 965 8 Total borrowings at Reserve Banks8 82 209 257 35 21 91 127 386 368 334 9 Seasonal borrowings 31 100 40 7 10 34 105 192 284 309 10 Extended credit9 0 0 0 0 0 0 0 0 0 0 Biweekly averages of daily figures for two week periods ending on dates indicated 1996 May 8 May 22 June 5 June 19 July 3 July 17 July 31r Aug. 14 Aug. 28 Sept. 11 1 Reserve balances with Reserve Banks2 16,876 16,946 16,341 16,565 16,735 16,049 14,447 14,940 14,611 14,608 2 Total vault cash3 42,013 40,823 40,879 42,824 41,403 42,347 43,492 43,326 41,604 43,007 3 Applied vault cash4 37,190 36,091 36,117 37,747 36,712 37,320 37,740 37,604 36,110 37,055 4 Surplus vault cash5 4,823 4,732 4,762 5,078 4,692 5,027 5,752 5,722 5,494 5,953 5 Total reserves6 54,065 53,037 52,458 54,311 53,447 53,369 52,187 52,543 50,721 51,663 6 Required reserves 53,002 52,201 51,743 53,234 52,007 52,543 50,964 51,514 49,825 50,681 7 Excess reserve balances at Reserve Banks7 1,063 836 715 1,078 1,439 826 1,223 1,029 896 981 8 Total borrowings at Reserve Banks8 92 129 156 469 386 290 442 306 349 394 9 Seasonal borrowings 71 103 138 173 241 273 304 290 328 308 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 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float and (line 3). includes other off-balance-sheet "as-of' adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Total "lagged" vault cash held by depository institutions subject to reserve 8. Also includes adjustment credit. requirements. Dates refer to the maintenance periods during which the vault cash may be used 9. Consists of borrowing at the discount window under the terms and conditions estabto satisfy reserve requirements. The maintenance period for weekly reporters ends sixteen lished for the extended credit program to help depository institutions deal with sustained days after the lagged computation period during which the vault cash is held. Before Nov. 25, liquidity pressures. Because there is not the same need to repay such borrowing promptly as 1992, the maintenance period ended thirty days after the lagged computation period. with traditional short-term adjustment credit, the money market effect of extended credit is 4. All vault cash held during the lagged computation period by "bound" institutions (that similar to that of nonborrowed reserves. is, those whose required reserves exceed their vault cash) plus the amount of vault cash applied during the maintenance period by "nonbound" institutions (that is, those whose vault cash exceeds their required reserves) to satisfy current reserve requirements. 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1996, week ending Monday SSoouurrccee aanndd mmaattuurriittyy July 1 July 8 July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 77,701 81,116 75,971 75,271 72,877 80,201 78,496 77,921 72,303 2 For all other maturities 17,237r 15,860' 16,560r 15,215r 14,764r 13,630 14,649 14,729 16,804 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 18,186 22,846 22,183 22,679 18,460 21,036 18,160 17,835 15,445 4 For all other maturities 21,379r 20,342r 21,720r 20,415r 20,430r 18,788 19,797 19,880 22,697 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 15,609 17,296 14,058 11,804 12,467 14,777 12,955 15,474 13,056 6 For all other maturities 37,087 38,104 39,958 39,674 41,571 38,984 39,498 34,426 35,857 All other customers 7 For one day or under continuing contract 34,219r 36,086 37,174 37,226 37,015 37,215 39,384 39,689 37,664 8 For all other maturities 13,905 13,089 12,734 13,145 13,065 13,154 13,285 12,907 13,674 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 72,77 lr 70,774 64,529 64,835 66,286 69,859 63,772 68,417 70,265 10 To all other specified customers2 22,812r 25,514 25,023 22,049 21,470 22,020 21,308 20,455 19,724 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 banks Data in this table also appear in the Board's H.5 (507) weekly statistical release. For 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

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 10 O /4 n / 96 Effective date Previous rate 10 O /4 n /9 6 Effective date Previous rate 10 O /4 n /9 6 Effective date Previous rate Boston 5.00 2/1/96 5.25 5.40 9/26/96 5.40 5.90 9/26/96 5.90 New York 1/31/96 Philadelphia 1/31/96 Cleveland 1/31/96 Richmond 2/1/96 Atlanta 1/31/96 Chicago 2/1/96 St. Louis 2/5/96 Minneapolis 1/31/96 Kansas City 2/1/96 Dallas 1/31/96 San Francisco 5.00 1/31/96 5.25 5.40 9/26/96 5.40 5.90 9/26/96 5.90 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Bank Range (or level)—All of level)—AH of level)—All F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks In effect Dec. 31, 1977 1981—Nov. 2 13-14 13 1988—Aug. 9 ... . 6-6.5 6.5 6 13 13 11 6.5 6.5 1978—Jan. 9 6-6.5 6.5 Dec. 4 12 12 20 6.5 6.5 1989—Feb. 24 ... . 6.5-7 7 May 11 6.5-7 7 1982—July 20 11.5-12 11.5 27 ... . 7 7 12 7 7 23 11.5 11.5 July 3 7-7.25 7.25 Aug. 2 11-11.5 11 1990—Dec. 19 ... . 6.5 6.5 10 7.25 7.25 3 11 11 Aug. 21 7.75 7.75 16 10.5 10.5 1991—Feb. 1.... 6-6.5 6 Sept. 22 8 8 27 10-10.5 10 6 6 Oct. 2 1 0 6 8 8 -8 .5 .5 8 8 . . 5 5 Oct. 3 1 0 2 9.5 1 - 0 1 0 1 9 0 . 5 X^'y.' 5 5 .5 .5 -6 5 5 . . 5 5 Nov. 1 8.5-9.5 9.5 13 9.5 9.5 Sept. 13 5-5.5 5 3 9.5 9.5 Nov. 22 9-9.5 9 17 ... . 5 5 26 9 9 Nov. 6 .... 4.5-5 4.5 1979—July 20 10 10 Dec. 14 8.5-9 9 1 .... 4.5 4.5 Aug. 17 10-10.5 10.5 15 8.5-9 8.5 Dec. 20 ... . 3.5-4.5 3.5 20 10.5 10.5 17 8.5 8.5 24 .... 3.5 3.5 Sept. 19 10.5-11 11 21 11 11 1984—Apr. 9 8.5-9 1992—July 2 .... 3-3.5 3 Oct. 8 11-12 12 13 9 1 .... 3 3 10 12 12 Nov. 21 8.5-9 26 8.5 1994—May 17 3-3.5 3.5 1980—Feb. 15 12-13 13 Dec. 24 18 3.5 3.5 19 13 13 Aug. 16 ... . 3.5^1 4 May 29 12-13 13 1985—May 20 7.5-8 7.5 18 .... 4 4 30 12 12 24 7.5 7.5 Nov. 15 ... . 4-4.75 4.75 June 13 11-12 11 17 ... . 4.75 4.75 16 11 11 1986—Mar. 7 7-7.5 7 July 28 10-11 10 10 7 7 1995—Feb. 1 . .. . 4.75-5.25 5.25 29 10 10 Apr. 21 6.5-7 6.5 9 ... . 5.25 5.25 Sept. 26 11 11 23. 6.5 6.5 Nov. 17 12 12 July 11 6 6 1996—Jan. 31.... 5.00-5.25 5.00 Dec. 5 12-13 13 Aug. 21 5.5-6 5.5 Feb. 5 ... . 5.00 5.00 8 13 13 22 5.5 5.5 1981—May 5 13-14 14 In effect Oct. 4, 1996 5.00 5.00 14 14 1987—Sept. 4 5.5-6 11 6 1. Available on a short-term basis to help depository institutions meet temporary needs for of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a funds that cannot be met through reasonable alternative sources. The highest rate established flexible rate somewhat above rates charged on market sources of funds is charged. The rate for loans to depository institutions may be charged on adjustment credit loans of unusual size ordinarily is reestablished on the first business day of each two-week reserve maintenance that result from a major operating problem at the borrower's facility. period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis 2. Available to help relatively small depository institutions meet regular seasonal needs for points. funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 4. For earlier data, see the following publications of the Board of Governors: Banking and that cannot be met through special industry lenders. The discount rate on seasonal credit takes Monetary Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest, 1970into account rates charged by market sources of funds and ordinarily is reestablished on the 1979. first business day of each two-week reserve maintenance period; however, it is never less than In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit the discount rate applicable to adjustment credit. borrowings by institutions with deposits of $500 million or more that had borrowed in 3. May be made available to depository institutions when similar assistance is not successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was reasonably available from other sources, including special industry lenders. Such credit may in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed be provided when exceptional circumstances (including sustained deposit drains, impaired on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to access to money market funds, or sudden deterioration in loan repayment performance) or 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, practices involve only a particular institution, or to meet the needs of institutions experiencing and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the difficulties adjusting to changing market conditions over a longer period (particularly at times surcharge was changed from a calendar quarter to a moving thirteen-week period. The of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is surcharge was eliminated on Nov. 17, 1981. charged on extended-credit loans outstanding less than thirty days; however, at the discretion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • November 1996 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of Effective date deposits Net transaction accounts2 1 $0 million-$52.0 million3 33333 1111122222/////1111199999/////9999955555 2 More than $52.0 million4 1111100000 1111122222/////1111199999/////9999955555 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 1. Required reserves must be held in the form of deposits with Federal Reserve Banks succeeding calendar year by 80 percent of the percentage increase in the total reservable or vault cash. Nonmember institutions may maintain reserve balances with a Federal liabilities of all depository institutions, measured on an annual basis as of June 30. No Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For corresponding adjustment is made in the event of a decrease. The exemption applies only to previous reserve requirements, see earlier editions of the Annual Report or the Federal accounts that would be subject to a 3 percent reserve requirement. Effective Dec. 19, 1995, Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions the exemption was raised from $4.2 million to $4.3 million. include commercial banks, mutual savings banks, savings and loan associations, credit 4. The reserve requirement was reduced from 12 percent to 10 percent on unions, agencies and branches of foreign banks, and Edge Act corporations. Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that 2. Transaction accounts include all deposits against which the account holder is permitted report quarterly. to make withdrawals by negotiable or transferable instruments, payment orders of with- 5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits drawal, or telephone or preauthorized transfers for the purpose of making payments to third with an original maturity of less than 1 l/l years was reduced from 3 percent to 1 percent for persons or others. However, accounts subject to the rules that permit no more than six the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that preauthorized, automatic, or other transfers per month (of which no more than three may be began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on by check, draft, debit card, or similar order payable directly to third parties) are savings nonpersonal time deposits with an original maturity of less than 1V5 years was reduced from 3 deposits, not transaction accounts. percent to zero on Jan. 17, 1991. 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts The reserve requirement on nonpersonal time deposits with an original maturity of 1 x/i against which the 3 percent reserve requirement applies be modified annually by 80 percent of years or more has been zero since Oct. 6, 1983. the percentage change in transaction accounts held by all depository institutions, determined 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero as of June 30 of each year. Effective Dec. 19, 1995, the amount was decreased from $54.0 in the same manner and on the same dates as the reserve requirement on nonpersonal time million to $52.0 million. deposits with an original maturity of less than 1 x/i years (see note 5). Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1996 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June July U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 17,717 17,484 10,932 0 0 0 88 0 3,311 0 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 332,229 376,277 398,487 31,476 39,332 30,556 32,218 40,467 31,726 32,368 4 Redemptions 0 0 900 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 1,223 1,238 390 0 0 0 35 0 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 31,368 0 0 2,048 2,746 0 3,511 5,107 0 2,807 8 Exchanges -36,582 -21,444 0 -3,287 -7,575 0 -4,824 -5,448 0 -4,415 9 Redemptions 0 0 0 1,228 0 0 787 0 0 0 One to five years 10 Gross purchases 10,350 9,168 4,966 0 0 0 1,899 0 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shifts -27,140 -6,004 0 -2,048 -1,908 0 -3,511 -4,049 0 -2,807 13 Exchanges 0 17,801 0 3,287 5,175 0 4,824 3,748 0 3,694 Five to ten years 14 Gross purchases 4,168 3,818 1,239 0 0 0 479 0 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shifts 0 -3,145 0 0 -818 0 0 -1,058 0 0 17 Exchanges 0 2,903 0 0 1,500 0 0 1,700 0 721 More than ten years 18 Gross purchases 3,457 3,606 3,122 0 0 0 1,065 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts 0 -918 0 0 -20 0 0 0 0 0 21 Exchanges 0 775 0 0 900 0 0 0 0 0 All maturities 22 Gross purchases 36,915 35,314 20,649 0 0 0 3,566 0 3,311 0 23 Gross sales 0 0 0 0 0 0 0 0 0 0 24 Redemptions 767 2,337 2,376 1,228 0 0 787 0 0 0 Matched transactions 25 Gross purchases 1,475,941 1,700,836 2,197,736 260,425 274,290 251,623 253,482 259,135 248,534 267,438 26 Gross sales 1,475,085 1,701,309 2,202,030 259,186 275,979 251,086 251,510 259,595 249,277 268,975 Repurchase agreements 27 Gross purchases 475,447 309,276 331,694 16,040 6,230 31,602 48,869 30,688 4433,,004488 4466,,115511 28 Gross sales 470,723 311,898 328,497 28,802 6,230 27,706 50,345 27,404 41,666 37,779 29 Net change in U.S. Treasury securities 41,729 29,882 17,175 -12,751 -1,689 4,433 3,274 2,824 3,950 6,836 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 774 1,002 1,303 0 0 108 82 16 40 52 Repurchase agreements 33 Gross purchases 35,063 52,696 36,851 9,793 765 5,640 2,372 5,722 5,138 3,145 34 Gross sales 34,669 52,696 36,776 10,893 765 4,640 3,372 4,372 6,488 2,863 35 Net change in federal agency obligations -380 -1,002 -1,228 -1,100 0 892 -1,082 1,334 -1,390 231 36 Total net change in System Open Market Account... 41,348 28,880 15,948 -13,851 -1,689 5,325 2,192 4,158 2,560 7,066 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

A10 Domestic Financial Statistics • November 1996 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1996 1996 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 June 30 July 31 Aug. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,050 11,050 11,050 11,050 11,050 11,050 11,050 11,050 2 Special drawing rights certificate account 10,168 9.718 9,718 9,718 9,718 10,168 10,168 9,718 3 Coin 521 532 547 556 553 552 521 550 Loans 4 To depository institutions 1,718 288 338 340 383 636 1,718 339 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 1 Bought outright 2,336 2,336 2,336 2,336 2,336 2,388 22,,333366 22,,333366 8 Held under repurchase agreements 282 642 898 665 1,778 0 282 1,238 9 Total U.S. Treasury securities 397,836 388,097 390,476 390,579 394,050 391,000 397,836 391,329 10 Bought outright2 382,378 383,243 385,806 387,269 386,478 383,914 382,378 386,955 11 Bills 185,833 186,698 186,786 187,009 186,217 187,370 185,833 186,694 12 Notes 150,102 150,102 151,546 152,392 152,392 150,102 150,102 152,392 13 Bonds 46,443 46,443 47,475 47,869 47,869 46,443 46,443 47,869 14 Held under repurchase agreements 15,458 4,854 4,670 3,310 7,572 7,086 15,458 4,374 15 Total loans and securities 402,173 391,363 394,049 393,921 398,547 394,025 402,173 395,242 16 Items in process of collection 6,143 6,884 5,891 5,831 5,923 4,152 6,143 4,100 17 Bank premises 1,190 1,193 1,199 1,199 1,198 1,182 1,190 1,197 Other assets 18 Denominated in foreign currencies 20,183 20,192 20,201 20,209 20,218 19,554 20,183 20,036 19 All other4 12,349 11,149 11,637 9,645 9,919 10,726 12,349 9,997 20 Total assets 463,777 452,081 454,291 452,129 457,126 451,409 463,777 451,890 LIABILITIES 21 Federal Reserve notes 404,930 406,169 406,572 406,013 407,223 401,101 404,930 408,235 22 Total deposits 38,332 26,657 28,642 27,179 30,933 32,804 38,332 25,846 23 Depository institutions 31,052 21,487 22,708 20,795 24,562 24,594 31,052 20,233 24 U.S. Treasury—General account 6,836 4,695 5,449 5,879 5,858 7,701 6,836 5,149 25 Foreign—Official accounts 166 169 177 183 216 183 166 171 26 Other 278 307 308 322 296 326 278 293 27 Deferred credit items 5,697 5,692 5,415 5,356 5,018 4,130 5,697 3,802 28 Other liabilities and accrued dividends5 5,156 4,372 4,345 4,226 4,524 4,464 5,156 4,585 29 Total liabilities 454,116 442,889 444,973 442,774 447,698 442,499 454,116 442,468 CAPITAL ACCOUNTS 30 Capital paid in 4,437 4,442 4,487 4,492 4,519 4,138 4,437 4,520 31 Surplus 3,966 3,966 3,966 3,966 3,966 3,966 3,966 3,966 32 Other capital accounts 1,257 783 864 896 943 806 1,257 936 33 Total liabilities and capital accounts 463,777 452,081 454,291 452,129 457,126 451,409 463,777 451,890 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 559,611 553,739 555,005 560,583 564,101 551,797 555599,,661111 556677,,997744 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 521,387 522,806 524,035 525,468 526,560 519,234 521,387 527,475 36 LESS: Held by Federal Reserve Banks 116,457 116,637 117,463 119,455 119,337 118,133 116,457 119,240 37 Federal Reserve notes, net 404,930 406,169 406,572 406,013 407,223 401,101 404,930 408,235 Collateral held against notes, net 38 Gold certificate account 11,050 11,050 11,050 11,050 11,050 11,050 11,050 1111,,005500 39 Special drawing rights certificate account 10,168 9,718 9,718 9,718 9,718 10,168 10,168 9,718 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 383,713 385,401 385,804 385,246 386,455 379,883 383,713 387,467 42 Total collateral 404,930 406,169 406,572 406,013 407,223 401,101 404,930 408,235 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical 3. Valued monthly at market exchange rates. release. For ordering address, see inside front cover. 4. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with bills maturing within ninety days. Federal Reserve Banks—and excludes securities sold and scheduled to be bought back under 5. Includes exchange-translation account reflecting the monthly revaluation at market matched sale-purchase transactions. exchange rates of foreign exchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month TTTyyypppeee ooofff hhhooollldddiiinnnggg aaannnddd mmmaaatttuuurrriiitttyyy 1996 1996 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 June 30 July 31 Aug. 31 1 Total loans 1,718 288 338 340 383 249 568 373 2 Within fifteen days' 1,555 57 93 298 343 231 512 330 3 Sixteen days to ninety days 1,163 231 245 42 40 18 57 43 4 Total U.S. Treasury securities 397,836 388,097 390,476 390,579 394,050 383,914 397,836 386,955 5 Within fifteen days' 28,057 23,199 22,890 18,929 17,481 4,410 28,057 3,250 6 Sixteen days to ninety days 86,783 83,247 83,560 92,760 92,893 99,558 86,783 92,893 7 Ninety-one days to one year 118,032 116,687 117,187 109,870 114,655 116,591 118,032 121,790 8 One year to five years 92,581 92,581 93,859 95,012 95,012 91,694 92,581 95,012 9 Five years to ten years 33,662 33,662 34,124 33,653 33,653 32,941 33,662 33,653 10 More than ten years 38,721 38,721 39,456 40,356 40,356 38,721 38,721 40,356 11 Total federal agency obligations 2,618 2,978 3,234 3,001 4,114 2,388 2,618 2,336 12 Within fifteen days' 438 642 898 962 2,100 307 438 322 13 Sixteen days to ninety days 722 876 876 579 564 495 722 564 14 Ninety-one days to one year 492 494 494 494 484 610 492 484 15 One year to five years 475 475 475 475 475 485 475 475 16 Five years to ten years 467 467 467 467 467 467 467 467 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 in NOTE. Total acceptances data have been deleted from this table because data are no longer accordance with maximum maturity of the agreements. available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics • November 1996 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1996 IItteemm 11999922 11999933 11999944 11999955 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS2222 1111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss3333 54.37 60.52 59.36 56.36 55.61 54.85 55.73 55.18 54.23 54.11 53.20 52.26 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss4444 54.24 60.44 59.16 56.11 55.57 54.81 55.71 55.09 54.10 53.73 52.83 51.93 3333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 54.24 60.44 59.16 56.11 55.57 54.81 55.71 55.09 54.10 53.73 52.83 51.93 4444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 53.21 59.46 58.20 55.09 54.12 54.00 54.59 54.06 53.37 52.96 52.13 51.30 5555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee6666 351.24 386.88 418.72 435.01 435.18 433.67 436.87 436.64 437.01 439.08 441.85 444.13 Not seasonally adjusted 6666 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss7777 56.06 62.37 61.13 58.02 56.95 53.80 54.97 56.00 53.29 53.87 53.05r 51.88 7777 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 55.93 62.29 60.92 57.76 56.91 53.77 54.95 55.90 53.16 53.48 52.69 51.54 8888 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 55.93 62.29 60.92 57.76 56.91 53.77 54.95 55.90 53.16 53.48 52.69 51.54 9999 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss8888 54.90 61.31 59.96 56.74 55.47 52.95 53.84 54.88 52.43 52.72 51.99 50.91 11110000 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee9999 354.55 390.59 422.51 439.03 436.01 430.29 434.86 437.12 436.13 439.88 443.19 444.51 NNNNOOOOTTTT AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS11110000 11111111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss''''1111 56.54 62.86 61.34 57.90 56.93 53.75 54.88 55.87 53.14 53.69 52.84r 51.64 11112222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 56.42 62.78 61.13 57.64 56.90 53.72 54.86 55.78 53.01 53.30 52.48 51.30 11113333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 56.42 62.78 61.13 57.64 56.90 53.72 54.86 55.78 53.01 53.30 52.48 51.30 11114444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 55.39 61.80 60.17 56.62 55.45 52.90 53.75 54.75 52.28 52.54 51.78 50.67 11115555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee11112222 360.90 397.62 427.25 444.45 441.96 436.26 440.77 442.96 442.17 445.94 449.26 450.70 11116666 EEEExxxxcccceeeessssssss rrrreeeesssseeeerrrrvvvveeeessss11113333 1.16 1.06 1.17 1.28 1.49 .85 1.14 1.12 .86 1.15 1.07 .97 11117777 BBBBoooorrrrrrrroooowwwwiiiinnnnggggssss ffffrrrroooommmm tttthhhheeee FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee .12 .08 .21 .26 .04 .04 .02 .09 .13 .39 .37 .33 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly 8. To adjust required reserves for discontinuities that are due to regulatory changes in statistical release. Historical data starting in 1959 and estimates of the effect on required reserve requirements, a multiplicative procedure is used to estimate what required reserves 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. Break- Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve adjusted required reserves include required reserves against transactions deposits and nonper- System, Washington, DC 20551. sonal time and savings deposits (but not reservable nondeposit liabilities). 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory 9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus changes in reserve requirements. (See also table 1.10.) (2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all adjusted required reserves (line 4) plus excess reserves (line 16). those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, difference between current vault cash and the amount applied to satisfy current reserve break-adjusted total reserves (line 1) less total borrowings of depository institutions from the requirements. Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no 5. Extended credit consists of borrowing at the discount window under the terms and adjustments to eliminate the effects of discontinuities associated with regulatory changes in conditions established for the extended credit program to help depository institutions deal reserve requirements. with sustained liquidity pressures. Because there is not the same need to repay such 11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve borrowing promptly as with traditional short-term adjustment credit, the money market effect requirements. of extended credit is similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total 6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for component of the money stock, plus (3) (for all quarterly reporters on the "Report of all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve difference between current vault cash and the amount applied to satisfy current reserve requirements. Since the introduction of contemporaneous reserve requirements in February requirements. 1984, currency and vault cash figures have been measured over the computation periods 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess ending on Mondays. 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

Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1996r IItteemm D 19 e 9 c 2 . D 19 e 9 c 3 . D 19 e 9 c 4 . D 19 e 9 c 5 .r May June July Aug. Seasonally adjusted Measures2 1 Ml 1,024.4 1,128.6 1,148.7 1,124.9 1,117.2 1,116.7 1,108.5 1,099.4 2 M2 3,438.7 3,494.0r 3,509.2r 3,657.4 3,723.7 3,740.0 3,745.8 3,757.2 3 M3 4,187.1r 4,249.6 4,319.1r 4,570.5 4,697.0 4,714.5 4,724.6 4,744.8 4 L 5,075.6r 5,164.5 5,302.8r 5,679.8 5,800.2 5,827.9 5,842.7 n.a. 5 Debt ll,880.1r 12,507.6r 13,148.8r 13,869.4 14,185.7 14,244.5 14,307.1 n.a. Ml components 6 Currency3 292.9 322.4 354.9 373.2 377.1 379.4 382.6 385.0 7 Travelers checks4 8.1 7.9 8.5 8.9 8.7 8.6 8.5 8.4 8 Demand deposits5 339.1 384.3 382.4 389.8 409.7 413.7 410.6 407.5 9 Other checkable deposits6 384.2 414.0 402.9 353.0 321.8 315.0 306.8 298.6 Nontransaction components 10 In M27 2,414.3 2,365.4 2,360.5' 2,532.6 2,606.5 2,623.3 2,637.3 2,657.7 11 In M3 only8 748.5r 755.6 809,9r 913.1 973.3 974.5 978.8 987.7 Commercial banks 12 Savings deposits, including MMDAs 754.1 785.0 751.9 775.0 829.7 838.2 845.0 856.7 13 Small time deposits9 509.3 470.3r 505.3r 578.3 574.8 575.1 577.9 580.8 14 Large time deposits10' 11 286.5r 272.2r 298.3r 342.1 361.1 366.8 372.0 377.4 Thrift institutions 15 Savings deposits, including MMDAs 433.0 433.8 397.0 359.5 367.9 368.8 368.7 367.1 16 Small time deposits9 361.9 317.6 318.2 359.4 353.4 352.5 351.7 353.0 17 Large time deposits10 67.1 61.5 64.8 75.1 75.1 75.4 76.2 76.7 Money market mutual funds 18 Retail 356.0 358.7 388.1 460.3 480.8 488.8 494.1 500.2 19 Institution-only 199.8 197.9 183.7 227.2 243.5 249.4 252.9 257.2 Repurchase agreements and Eurodollars 20 Repurchase agreements12 128.1 157.5 180.8 177.6 195.1 183.6 179.9 177.5 21 Eurodollars12 66.9 66.3 82.3 91.1 98.5 99.3 97.7 98.8 Debt components 22 Federal debt 3,064.3r 3,323.3r 3,492.2r 3,638.8 3,704.3 3,710.7 3,729.4 n.a. 23 Nonfederal debt 8,815.7r 9,184.2r 9,656.6r 10,230.7 10,481.5 10,533.8 10,577.7 n.a. Not seasonally adjusted Measures2 24 Ml 1,046.0 1,153.7 1,174.2 1,150.7 1,104.0 1,112.8 1,108.5 1,095.3 25 M2 3,455.1 3,514.1 3,529.6r 3,677.1 3,709.2 3,738.4 3,752.7 3,761.1 26 M3 4,205. lr 4,271.2r 4,340.9r 4,591.6 4,681.9 4,711.7 4,726.8 4,750.9 27 L 5,102.9r 5,194.1r 5,332.3r 5,709.3 5,781.0 5,819.0 5,839.9 n.a. 28 Debt 11,881.5 12,509.6 13,150.2 13,869.2 14,136.8 14,196.3 14,246.3 n.a. Ml components 29 Currency3 295.0 324.8 357.5 376.1 377.5 380.5 383.7 385.9 30 Travelers checks4 7.8 7.6 8.1 8.5 8.6 8.9 9.1 9.0 31 Demand deposits5 354.4 401.8 400.1 407.9 399.5 409.8 411.2 405.0 32 Other checkable deposits6 388.9 419.4 408.4 358.1 318.3 313.6 304.5 295.4 Nontransaction components 33 In M27 2,409.1 2,360.4 2,355.4r 2,526.4 2,605.1 2,625.6 2,644.2 2,665.8 34 In M3 only8 750.0r 757.1 811.3r 914.5 972.7 973.4 974.0 989.7 Commercial banks 35 Savings deposits, including MMDAs 752.9 784.3 751.6 775.0 827.7 839.9 847.4 859.8 36 Small time deposits9 507.8 468.2 502.3r 574.3 576.9 577.1 580.3 582.2 37 Large time deposits10' " 286.0r 272.0r 298. r 342.0 363.5 367.5 370.3 378.2 Thrift institutions 38 Savings deposits, including MMDAs 432.4 433.4 396.9 359.5 367.0 369.5 369.7 368.4 39 Small time deposits9 360.9 316.1 316.3r 356.9 354.7 353.8 353.2 353.9 40 Large time deposits10 67.0 61.5 64.8 75.1 75.6 75.6 75.9 76.9 Money market mutual funds 41 Retail 355.1 358.3 388.2 460.6 478.9 485.3 493.6 501.6 42 Institution-only 201.1 199.4 185.5 229.4 241.1 244.5 250.2 256.9 Repurchase agreements and Eurodollars 43 Repurchase agreements12 127.2 156.6 179.6 176.2 195.4 187.2 180.5 178.5 44 Eurodollars12 68.7 67.6 83.4 91.9 97.2 98.5 97.1 99.2 Debt components 45 Federal debt 3,069.8 3,329.5 3,499.0 3,645.9 3,692.1 3,698.1 3,708.3 n.a. 46 Nonfederal debt 8,811.7 9,180.1 9,651.2 10,223.3 10,444.7 10,498.2 10,538.0 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • November 1996 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly these assets. Seasonally adjusted L is computed by summing U.S. savings bonds, short-term statistical release. Historical data starting in 1959 are available from the Money and Reserves Treasury securities, commercial paper, and bankers acceptances, each seasonally adjusted Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve separately, and then adding this result to M3. System, Washington, DC 20551. Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial 2. Composition of the money stock measures and debt is as follows: sectors—the federal sector (U.S. government, not including government-sponsored enter- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of prises or federally related mortgage pools) and the nonfederal sectors (state and local depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all governments, households and nonprofit organizations, nonfinancial corporate and nonfarm commercial banks other than those owed to depository institutions, the U.S. government, and noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and foreign banks and official institutions, less cash items in the process of collection and Federal corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of which are derived from the Federal Reserve Board's flow of funds accounts, are breakwithdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, adjusted (that is, discontinuities in the data have been smoothed into the series) and credit union share draft accounts, and demand deposits at thrift institutions. Seasonally month-averaged (that is, the data have been derived by averaging adjacent month-end levels). adjusted Ml is computed by summing currency, travelers checks, demand deposits, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository OCDs, each seasonally adjusted separately. institutions. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) Travelers checks issued by depository institutions are included in demand deposits. balances in retail money market mutual funds (money funds with minimum initial invest- 5. Demand deposits at commercial banks and foreign-related institutions other than those ments of less than $50,000). Excludes individual retirement accounts (IRAs) and Keogh owed to depository institutions, the U.S. government, and foreign banks and official institubalances at depository institutions and money market funds. Seasonally adjusted M2 is tions, less cash items in the process of collection and Federal Reserve float. calculated by summing savings deposits, small-denomination time deposits, and retail money 6. Consists of NOW and ATS account balances at all depository institutions, credit union fund balances, each seasonally adjusted separately, and adding this result to seasonally share draft account balances, and demand deposits at thrift institutions. adjusted Ml. 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) money fund balances. issued by all depository institutions, (2) balances in institutional money funds (money funds 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities with minimum initial investments of $50,000 or more), (3) RP liabilities (overnight and term) (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and issued by all depository institutions, and (4) Eurodollars (overnight and term) held by U.S. term) of U.S. addressees. residents at foreign branches of U.S. banks worldwide and at all banking offices in the United 9. Small time deposits—including retail RPs—are those issued in amounts of less than Kingdom and Canada. Excludes amounts held by depository institutions, the U.S. govern- $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are ment, money market funds, and foreign banks and official institutions. Seasonally adjusted subtracted from small time deposits. M3 is calculated by summing large time deposits, institutional money fund balances, RP 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those liabilities, and Eurodollars, each seasonally adjusted separately, and adding this result to booked at international banking facilities. seasonally adjusted M2. 11. Large time deposits at commercial banks less those held by money market funds, L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury depository institutions, the U.S. government, and foreign banks and official institutions. securities, commercial paper, and bankers acceptances, net of money market fund holdings of 12. Includes both overnight and term. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1996 IItteemm D 19 e 9 c 3 . D 19 e 9 c 4 . D 19 e 9 c 5 . Jan. Feb. Mar. Apr. May June Julyr Aug. Interest rates (annual effective yields)2 INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts 1.86 1.96 1.91 1.90 1.91 1.85 1.89 1.88 1.90 1.91 1.94 2 Savings deposits3 2.46 2.92 3.10 3.01 2.98 2.91 2.91 2.89 2.86 2.88 2.85 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 2.65 3.79 4.10 4.02 3.99 4.02 4.01 4.03 4.08 4.14 4.17 4 92 to 182 days 2.91 4.44 4.68 4.57 4.45 4.49 4.51 4.51 4.55 4.59 4.61 5 183 days to 1 year 3.13 5.12 5.02 4.91 4.79 4.83 4.86 4.88 4.95 5.00 5.00 6 More than 1 year to 2 VI years 3.55 5.74 5.17 5.03 4.89 4.94 5.03 5.10 5.18 5.25 5.25 7 More than 2vl years 4.28 6.30 5.40 5.26 5.10 5.19 5.28 5.36 5.46 5.51 5.50 BIF-INSURED SAVINGS BANKS4 8 Negotiable order of withdrawal accounts 1.87 1.94 1.91 1.85 1.84 1.83 1.84 1.82 1.80 1.81 1.81 9 Savings deposits3 2.63 2.87 2.98 2.95 2.92 2.86 2.85 2.84 2.85 2.88 2.86 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 2.81 3.80 4.43 4.38 4.26 4.37 4.42 4.49 4.54 4.64 4.65 11 92 to 182 days 3.02 4.89 4.95 4.86 4.77 4.76 4.77 4.83 4.91 5.01 5.06 12 183 days to 1 year 3.31 5.52 5.18 5.06 4.91 4.89 4.91 4.96 5.02 5.09 5.26 13 More than 1 year to 2 l/i years 3.67 6.09 5.33 5.22 5.10 5.15 5.23 5.25 5.35 5.41 5.59 14 More than 2 v2 years 4.62 6.43 5.46 5.34 5.24 5.24 5.32 5.38 5.51 5.60 5.80 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts 305,237 304,896 248,417 245,749 242,930 218,604 228,637 208,890 203,034 206,703 192,551 16 Savings deposits3 767,035 737,068 776,466 768,071 784,035 827,666 805,317 839,482 844,348 840,966 866,712 17 Personal 598,276 580,438 615,113 612,321 623,110 661,919 639,921 669,107 672,737 667,217 687,900 18 Nonpersonal 168,759 156,630 161,353 155,750 160,925 165,748 165,396 170,375 171,611 173,749 178,812 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 29,362 32,265 32,170 33,783 35,719 35,377 34,071 30,356 31,345 31,964 33,002 20 92 to 182 days 109,050 96,650 93,941 95,350 97,219 97,141 96,052 95,896 95,100 94,256 91,596 21 183 days to 1 year 145,386 163,062 183,834 184,046 184,095 186,158 190,018 193,722 195,450 197,664 200,868 22 More than 1 year to 2'/i years 139,781 164,395 208,601 212,394 210,493 208,915 208,252 208,767 209,587 209,084 209,743 23 More than 2 Vl years 180,461 192,712 199,002 199,254 198,922 198,980 197,783 198,332 198,856 197,858 199,547 24 IRA and Keogh plan deposits 144,011 144,155 150,546 150,366 149,965 150,496 150,580 150,889 151,349 151,836 151,908 BIF-INSURED SAVINGS BANKS4 25 Negotiable order of withdrawal accounts 11,191 11,175 11,918 11,139 11,597 11,703 11,492 11,744 11,234 10,893 10,801 26 Savings deposits" 80,376 70,082 68,643 66,702 67,614 67,276 66,808 67,715 66,886 66,894 67,944 27 Personal 77,263 67,159 65,366 63,377 64,524 64,208 63,559 64,199 63,594 63,594 64,394 28 Nonpersonal 3,113 2,923 3,277 3,325 3,090 3,068 3,249 3,516 3,292 3,300 3,549 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 2,746 2,144 2,001 2,009 2,131 2,140 2,179 2,345 2,226 2,378 2,356 30 92 to 182 days 12,974 11,361 12,140 12,334 13,247 13,477 13,911 13,934 13,702 13,638 13,633 31 183 days to 1 year 17,469 18,391 25,686 26,304 26,863 26,534 27,265 28,079 27,907 28,605 29,717 32 More than 1 year to 2x/l years 16,589 17,787 27,482 26,582 26,945 25,934 25,684 25,422 25,492 26,181 26,376 33 More than 2 Vl years 20,501 21,293 22,866 22,449 21,819 22,646 22,526 22,638 22,569 22,616 22,694 34 IRA and Keogh plan accounts 19,791 19,013 21,321 20,827 20,845 20,615 20,553 20,543 20,709 20,763 20,763 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 day 4. Includes both mutual and federal savings banks. 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

A16 Domestic Financial Statistics • November 1996 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 1996 BBaannkk ggrroouupp,, oorr ttyyppee ooff ddeeppoossiitt 1199993322 1199994422 1199995522 Jan. Feb. Mar. Apr. May June DEBITS Seasonally adjusted Demand deposits3 1 All insured banks 334,784.1 369,029.1 397,649.3 430,421.2 447,869.0 422,696.7 463,244.4r 470,742.4r 423,913.3 2 Major New York City banks 171,224.3 191,168.8 201,161.4 229,379.2 238,538.4 224,066.5 245,440.5 252,388.2r 219,267.0 3 Other banks 163,559.7 177,860.3 196,487.9 201,042.0 209,330.6 198,630.2 217,803.9r 218,354.2r 204,646.3 4 Other checkable deposits4 3,481.5 3,798.6 4,207.4 4,967.8 5,024.4 4,942.7 5,281.2r 5,703.6r 5,183.2 5 Savings deposits (including MMDAs)5 3,497.4 3,766.3 4,507.8 6,035.9 6,406.6 6,283.1 7,357. lr 7,132.9 7,198.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 785.9 817.4 874.1 916.8 950.6 881.0 970.0 987.3 865.1 7 Major New York City banks 4,198.1 4,481.5 4,867.3 5,368.0 5,852.3 5,608.2 5,884.3 6,032.3 4,921.9 8 Other banks 424.6 435.1 475.2 471.1 486.4 451.6 499.7 502.0 459.4 9 Other checkable deposits4 11.9 12.6 15.4 20.8 21.6 21.7 23.3 26.4 24.7 10 Savings deposits (including MMDAs)5 4.6 4.9 6.1 7.7 8.1 7.8 9.0 8.7 8.6 DEBITS Not seasonally adjusted Demand deposits3 11 All insured banks 334,899.2 369,121.8 397,657.8 429,213.3 414,819.1 442,977.6 456,898.8r 459,061.9r 436,753.7 12 Major New York City banks 171,283.5 191,226.0 201,182.6 227,293.7 222,007.5 236.954.2 238,335.3 240,893.0 225,760.4 13 Other banks 163,615.7 177,895.7 196,475.3 201,919.6 192,811.6 206,023.4 218,563.4r 218,168.8r 210,993.3 14 Other checkable deposits4 3,481.7 3,795.6 4,202.6 5,393.9 4,629.1 4.990.4 5,580.9r 5,479.7r 5,332.4 15 Savings deposits (including MMDAs)5 3,498.3 3,764.4 4,500.8 6,309.7 5,798.9 6,444.7 7,690.2r 7,061.9r 7,375.0 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 786.1 818.2 874.6 895.4 900.9 947.0 956.6 980.2r 903.0 17 Major New York City banks 4,197.9 4,490.3 4,873.1 5,109.7 5,427.5 6,060.5 5,774.9 5,963.5 5,188.2 18 Other banks 424.8 435.3 475.4 464.3 459.6 480.6 500.9 509.8 479.4 19 Other checkable deposits4 11.9 12.6 15.3 22.0 19.9 21.8 24.1 25.6 25.6 20 Savings deposits (including MMDAs)5 4.6 4.9 6.1 8.1 7.3 7.9 9.4 8.6 8.8 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 automatic Publications Section, Division of Support Services, Board of Governors of the Federal transfer to demand deposits (ATSs) and negotiable order of withdrawal (NOW) accounts, Reserve System, Washington, DC 20551. were expanded to include telephone and preauthorized transfer accounts. This change Data in this table also appear in the Board's G.6 (406) monthly statistical release. For 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

Commercial Banking Institutions A17 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Billions of dollars Monthly averages Wednesday figures Account 1995 1996' 1996 Aug. Feb. Mar. Apr. May June July Aug. Aug. 7 Aug. 14 Aug. 21 Aug. 28 ALL COMMERCIAL Seasonally adjusted BANKING INSTITUTIONS Assets 1 Bank credit 3,548.4 3,647.8 3,641.7 3,660.1 3,664.3 3,669.0 3,672.0 3,668.8 3,670.4 3,666.9 3,669.5 3,668.7 7 Securities in bank credit 985.2 998.6 983.5 982.6 989.1 980.7 975.2 966.4 974.2 970.7 963.6 961.0 U.S. government securities 708.5 716.3 705.9 705.9 714.7 708.1 708.0 702.3 704.7 704.0 697.9 702.6 4 Other securities 276.6 282.3 277.5 276.7 274.4 272.6 267.2 264.0 269.5 266.7 265.7 258.4 Loans and leases in bank credit2 .. . 2,563.3 2,649.3 2,658.2 2,677.5 2,675.2 2,688.3 2,696.8 2,702.4 2,696.2 2,696.2 2,705.9 2,707.7 Commercial and industrial 701.4 728.5 727.5 733.4 735.8 738.9 742.8 744.2 742.1 740.6 744.6 746.7 7 Real estate 1,067.9 1,089.6 1,094.9 1,096.7 1,098.3 1,101.6 1,102.6 1,109.3 1,106.1 1,108.7 1,111.6 1,110.5 8 Revolving home equity 78.2 79.8 79.8 80.0 79.5 79.1 79.5 80.1 80.0 80.0 80.1 80.3 Other 989.7 1,009.8 1,015.1 1,016.7 1,018.8 1,022.4 1,023.0 1,029.2 1,026.1 1,028.8 1,031.4 1,030.1 10 Consumer 485.7 500.6 504.1 507.8 505.3 510.5 512.5 514.2 512.7 512.6 514.4 515.8 11 Security3 84.3 85.7 84.9 85.9 82.6 82.1 80.3 76.7 77.4 77.5 77.1 75.9 17, Other 223.9 244.9 246.9 253.7 253.2 255.3 258.6 257.9 257.9 256.7 258.2 258.8 13 Interbank loans4 189.5 192.3 202.6 208.9 208.7 207.0 199.6 203.3 199.9 206.2 206.1 200.7 14 Cash assets5 211.7 219.6 216.4 222.5 219.4 216.7 216.8 219.3 218.1 218.9 215.8 221.7 15 Other assets6 224.6 242.8 241.8 243.6 243.5 253.9 265.0 267.9 264.5 268.1 267.7 267.6 16 Total assets7 4,1173 4,245.8 4,245.7 4,277.9 4,278.9 4,289.3 4,295.6 4301.4 4,295.1 4302.2 4301.2 4300.7 Liabilities 17 Deposits 2,616.7 2,681.7 2,702.5 2,718.7 2,717.7 2,721.4 2,728.4 2,741.9 2,739.7 2,742.1 2,735.7 2,740.5 18 Transaction 783.3 765.5 766.6 769.9 756.2 749.7 742.5 733.2 737.1 730.6 728.4 734.7 19 Nontransaction 11,,883333..55 1,916.2 1,936.0 1,948.8 1,961.4 1,971.8 1,985.9 2,008.7 2,002.5 2,011.5 2,007.3 2,005.8 70 Large time 440088..88 426.4 429.1 433.3 440.0 445.4 448.0 452.7 450.0 453.1 453.1 453.1 71 Other 1,424.7 1,489.9 1,506.9 1,515.4 1,521.4 1,526.4 1,537.9 1,556.0 1,552.6 1,558.5 1,554.2 1,552.7 72 Borrowings 687.8 691.8 688.8 710.5 710.3 702.1 692.6 700.4 693.5 700.0 696.6 712.1 73 From banks in the U.S 194.2 192.6 204.0 207.6 207.3 203.6 200.2 200.0 194.6 204.8 197.8 204.9 74 From nonbanks in the U.S 493.5 499.2 484.8 503.0 503.0 498.5 492.4 500.5 498.8 495.1 498.8 507.2 75 Net due to related foreign offices 244.5 276.6 261.6 254.6 256.1 255.2 249.1 243.5 250.0 243.0 253.7 229.0 26 Other liabilities8 215.9 233.8 224.1 231.7 220.1 227.0 224.6 228.9 226.6 230.2 231.4 228.7 27 Total liabilities 3,764.9 3,883.9 3,877.0 3,915.5 3,904.2 3,905.8 3,894.7 3,914.8 3,909.8 3,9153 3,917.4 3,910.4 28 Residual (assets less liabilities)9 352.5 361.9 368.7 362.3 374.7 383.5 401.0 386.6 385.3 386.9 383.8 390.4 Not seasonally adjusted Assets 79 Bank credit 3,547.1 3,639.5 3,636.1 3,661.3 3,661.2 3,665.9 3,664.6 3,667.5 3,668.7 3,669.4 3,664.6 3,663.9 30 Securities in bank credit 988.8 993.6 988.0 987.9 993.6 981.9 971.7 970.4 976.4 976.6 966.8 964.0 31 U.S. government securities 711.4 711.6 710.3 712.0 715.5 708.3 705.7 705.5 707.2 708.3 701.3 704.7 37 Other securities 277.4 282.0 277.7 275.9 278.1 273.6 265.9 264.9 269.2 268.2 265.5 259.3 33 Loans and leases in bank credit2 .. . 2,558.3 2,645.9 2,648.1 2,673.4 2,667.7 2,684.0 2,692.9 2,697.1 2,692.3 2,692.8 2,697.8 2,699.9 34 Commercial and industrial 698.2 726.6 731.4 739.3 741.3 741.9 743.9 740.9 741.5 739.0 740.7 740.3 35 Real estate 1,067.6 1,086.5 1,089.3 1,092.8 1,095.3 1,100.2 1,102.4 1,108.8 1,105.5 1,109.1 1,110.0 1,109.9 36 Revolving home equity 78.5 79.3 79.0 79.4 79.4 79.1 79.6 80.4 80.0 80.2 80.4 80.7 37 Other 989.1 1,007.2 1,010.3 1,013.5 1,015.9 1,021.1 1,022.8 1,028.5 1,025.5 1,028.9 1,029.6 1,029.3 38 Consumer 485.9 501.1 499.9 505.0 503.6 506.8 509.8 514.4 510.7 512.3 515.0 517.9 39 Security3 82.1 88.7 84.8 86.7 78.4 80.0 77.8 74.7 75.8 75.5 74.2 74.0 40 Other 224.5 243.0 242.8 249.5 249.2 255.2 259.1 258.3 258.7 257.0 257.8 257.7 41 Interbank loans4 184.7 194.2 200.5 205.9 202.3 203.3 196.8 197.6 195.6 202.5 197.4 191.4 47 Cash assets5 202.8 220.4 209.2 217.0 216.7 214.6 214.6 209.7 205.6 209.3 200.8 209.6 43 Other assets6 226.5 242.2 240.3 241.0 244.4 253.4 265.7 270.0 268.7 269.8 266.3 269.4 44 Total assets7 4,104.1 4,239.5 4,229.1 4,268.4 4,267.6 4,279.9 4,284.1 4,286.9 4,280.9 4,293.0 4,2712 4,2763 Liabilities 45 Deposits 2,603.6 2,672.7 2,688.9 2,715.6 2,707.3 2,718.2 2,721.5 2,729.7 2,732.9 2,736.7 2,708.5 2,711.7 46 Transaction 768.9 758.3 751.8 768.9 743.9 743.2 735.4 719.5 725.3 723.0 700.9 708.9 47 Nontransaction 1,834.7 1,914.4 1,937.1 1,946.7 1,963.4 1,975.0 1,986.2 2,010.1 2,007.5 2,013.6 2,007.7 2,002.8 48 Large time 408.0 426.9 430.6 433.2 445.4 445.2 445.9 452.0 449.1 451.5 452.9 453.2 49 Other 1,426.7 1,487.5 1 JI06.5 1,513.4 1,518.0 1,529.8 1,540.3 1,558.1 1,558.4 1,562.2 1,554.8 1,549.6 50 Borrowings 686.2 686.2 680.7 696.6 707.7 711.8 704.7 696.8 690.8 699.1 694.4 701.6 51 From banks in the U.S 188.2 194.3 199.2 206.4 204.6 205.2 198.4 193.3 188.5 199.1 189.6 194.9 57 From nonbanks in the U.S 497.9 491.9 481.5 490.2 503.1 506.6 506.3 503.5 502.4 499.9 504.8 506.7 53 Net due to related foreign offices 242.8 278.2 262.2 254.8 258.4 247.8 247.7 242.6 241.8 238.6 249.6 244.1 54 Other liabilities8 215.8 234.3 225.5 228.0 222.7 227.8 224.1 228.3 226.0 229.6 229.4 229.0 55 Total liabilities 3,748.4 3371.4 3,8573 3,895.0 3,896.1 3,905.6 3,898.0 3,897.4 3,891.5 3,903.9 3,881.9 3,886.4 56 Residual (assets less liabilities)9 355.8 368.1 371.8 373.3 371.5 374.3 386.1 389.5 389.4 389.1 389.3 389.9 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • November 1996 1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1—Continued Billions of dollars Monthly averages Wednesday figures Account 1995 1996r 1996 Aug. Feb. Mar. Apr. May June July Aug. Aug. 7 Aug. 14 Aug. 21 Aug. 28 DOMESTICALLY CHARTERED Seasonally adjusted COMMERCIAL BANKS Assets 57 Bank credit 3,121.7 3,196.5 3,198.5 3,211.9 3,214.0 3,211.1 3,212.3 3,206.8 3,207.0 3,207.7 3,208.4 3,204.3 58 Securities in bank credit 848.3 852.9 843.3 841.8 845.5 835.9 833.4 823.2 829.4 828.5 821.4 816.3 59 U.S. government securities 641.5 642.8 634.8 634.4 636.8 628.8 627.3 619.5 622.7 621.4 616.1 617.9 60 Other securities 206.7 210.1 208.6 207.4 208.8 207.1 206.1 203.7 206.7 207.1 205.4 198.5 61 Loans and leases in bank credit2 2,273.4 2,343.6 2,355.1 2,370.1 2,368.5 2,375.3 2,379.0 2,383.6 2,377.7 2,379.3 2,386.9 2,388.0 62 Commercial and industrial 525.6 541.5 541.9 546.5 548.8 549.0 550.3 552.3 550.0 550.5 553.1 553.9 63 Real estate 1,030.6 1,055.3 1,061.7 1,063.5 1,065.2 1,068.7 1,069.3 1,075.8 1,072.6 1,075.2 1,078.0 1,077.0 64 Revolving home equity 78.2 79.8 79.8 79.9 79.5 79.1 79.5 80.1 80.0 80.0 80.1 80.3 65 Other 952.4 975.5 981.9 983.6 985.7 989.6 989.8 995.7 992.6 995.3 997.9 996.7 66 Consumer 485.7 500.6 504.1 507.8 505.3 510.5 512.5 514.2 512.7 512.6 514.4 515.8 67 Security3 51.0 52.2 51.2 52.9 50.7 46.8 46.1 42.0 43.7 42.9 42.3 40.2 68 Other 180.5 194.0 196.2 199.4 198.5 200.3 200.7 199.2 198.7 197.9 199.1 201.1 69 Interbank loans4 165.5 171.6 181.8 187.8 187.4 184.5 180.4 183.4 178.9 185.7 185.5 183.4 70 Cash assets5 184.6 190.3 189.1 196.3 193.2 191.5 191.6 194.2 192.8 193.9 190.7 196.6 71 Other assets6 170.6 186.3 186.8 188.7 188.1 201.7 215.3 219.8 216.8 219.9 219.4 219.3 72 Total assets7 3,585.5 3,687.9 3,699.4 3,727.6 3,725.8 3,731.6 3,741.9 3,7463 3,737.8 3,749.4 3,746.1 3,745.8 Liabilities 73 Deposits 2,448.3 2,516.9 2,534.6 2,549.2 2,545.1 2,549.3 2,553.9 2,567.6 2,565.0 2,567.3 2,561.7 2,566.7 74 Transaction 774.0 754.8 756.7 759.4 745.3 738.8 731.9 722.5 726.2 719.9 717.5 724.0 75 Nontransaction 1,674.4 1,762.1 1,777.8 1,789.7 1,799.8 1,810.5 1,822.0 1,845.1 1,838.8 1,847.4 1,844.2 1,842.6 76 Large time 250.3 274.4 273.3 275.6 279.4 283.1 285.5 290.3 287.2 289.8 291.0 291.5 77 Other 1,424.1 1,487.7 1,504.5 1,514.1 1,520.4 1,527.4 1,536.6 1,554.8 1,551.6 1,557.6 1,553.2 1,551.2 78 Borrowings 567.2 574.1 577.0 591.1 585.4 582.1 576.1 580.2 577.1 579.3 575.9 588.1 79 From banks in the US 175.8 173.1 183.5 184.4 183.9 183.3 180.6 179.1 174.4 184.5 176.0 183.5 80 From nonbanks in the U.S 391.4 401.0 393.5 406.7 401.5 398.8 395.5 401.1 402.6 394.8 399.9 404.6 81 Net due to related foreign offices .... 90.8 90.5 81.4 84.7 88.2 79.8 77.1 72.0 74.0 71.8 78.7 67.3 82 Other liabilities8 136.9 153.9 147.1 154.8 146.6 155.9 155.1 160.7 158.9 162.4 162.5 160.4 83 Total liabilities 3,2433 3335.4 3,340.0 3,379.7 3365.2 3367.1 3362.2 3380.4 3374.9 3380.8 3378.7 3382.4 84 Residual (assets less liabilities)9 342.2 352.5 359.4 347.8 360.6 364.5 379.7 365.8 362.9 368.6 367.4 363.3 Not seasonally adjusted Assets 85 Bank credit 3,119.0 3,188.4 3,191.4 3,214.7 3,214.4 3,211.4 3,204.3 3,203.4 3,202.9 3,206.2 3,201.2 3,199.5 86 Securities in bank credit 850.3 849.0 846.7 847.0 848.8 839.2 829.3 825.2 829.7 831.0 822.3 818.4 87 U.S. government securities 643.6 638.7 637.9 640.1 638.4 630.0 625.2 621.4 624.2 623.5 617.4 619.5 88 Other securities 206.8 210.3 208.8 206.9 210.4 209.2 204.1 203.8 205.6 207.5 205.0 198.9 89 Loans and leases in bank credit2 2,268.6 2,339.4 2,344.7 2,367.7 2,365.6 2,372.2 2,375.0 2,378.2 2,373.1 2,375.1 2,378.9 2,381.1 90 Commercial and industrial 521.7 540.7 545.0 552.4 554.3 551.4 550.3 548.1 548.0 547.0 548.1 547.8 91 Real estate 1,030.2 1,052.0 1,055.9 1,060.0 1,062.4 1,067.4 1,069.2 1,075.3 1,072.1 1,075.6 1,076.4 1,076.4 92 Revolving home equity 78.4 79.3 79.0 79.3 79.4 79.0 79.6 80.3 80.0 80.1 80.4 80.6 93 Other 951.8 972.7 976.9 980.7 983.0 988.3 989.6 995.0 992.1 995.4 996.1 995.8 94 Consumer 485.9 501.1 499.9 505.0 503.6 506.8 509.8 514.4 510.7 512.3 515.0 517.9 95 Security3 49.9 53.2 51.3 53.9 49.5 47.0 44.8 41.1 43.0 42.2 40.6 39.2 96 Other 180.9 192.4 192.6 196.3 195.9 199.7 200.9 199.3 199.3 198.1 198.7 199.8 97 Interbank loans4 161.3 175.3 180.5 185.7 180.8 182.6 177.6 178.5 176.5 183.3 178.3 172.2 98 Cash assets5 174.9 192.2 182.2 191.4 191.0 188.6 188.8 184.0 179.9 183.6 175.1 183.9 99 Other assets6 171.3 185.1 186.1 187.9 188.3 201.4 216.7 220.7 219.6 220.6 217.1 220.1 100 Total assets7 3,569.6 3,6843 3,683.2 3,722.8 3,717.6 3,726.8 3,730.0 3,728.7 3,721.1 3,735.7 3,713.8 3,717.8 Liabilities 101 Deposits 2,436.7 2,508.2 2,520.5 2,548.4 2,533.3 2,543.9 2,549.3 2,556.9 2,560.3 2,564.0 2,535.8 2,538.8 102 Transaction 759.7 747.6 742.1 758.9 733.6 732.6 724.7 708.9 714.6 712.3 690.2 698.2 103 Nontransaction 1,677.0 1,760.5 1,778.4 1,789.5 1,799.7 1,811.3 1,824.6 1,848.1 1,845.7 1,851.7 1,845.6 1,840.6 104 Large time 251.4 275.8 273.8 277.0 282.7 282.9 285.6 291.7 288.8 291.1 292.5 292.8 105 Other 1,425.6 1,484.7 1,504.6 1,512.5 1,517.0 1,528.4 1,539.0 1,556.4 1,556.9 1,560.5 1,553.0 1,547.8 106 Borrowings 564.1 573.2 569.5 576.3 584.5 587.6 582.8 574.6 568.8 576.9 572.2 579.3 107 From banks in the U.S 170.0 175.6 178.5 184.1 182.8 183.3 177.8 172.6 167.8 178.4 168.9 174.2 108 From nonbanks in the U.S 394.1 397.6 390.9 392.2 401.7 404.3 405.1 402.0 401.0 398.5 403.3 405.1 109 Net due to related foreign offices .... 89.1 92.3 84.5 85.0 93.2 78.7 76.0 70.5 69.9 66.6 77.5 71.9 110 Other liabilities8 135.8 152.3 148.8 152.8 148.1 156.3 155.1 159.2 156.9 160.4 160.2 159.8 111 Total liabilities 3,225.6 3326.0 3323.4 3362.5 3359.1 3366.5 3363.2 3361.2 3355.9 3368.0 3345.7 3349.8 112 Residual (assets less liabilities)9 344.0 358.3 359.8 360.4 358.5 360.4 366.7 367.4 365.2 367.8 368.1 368.0 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 condition commercial banks in the United States. (large domestic); other domestically chartered commercial banks (small domestic); branches 5. Includes vault cash, cash items in process of collection, demand balances due from and agencies of foreign banks; New York State investment companies, and Edge Act and depository institutions in the United States, balances due from Federal Reserve Banks, and agreement corporations (foreign-related institutions). Excludes international banking facili- other cash assets. ties. Data are Wednesday values, or pro rata averages of Wednesday values. Large domestic 6. Excludes the due-from position with related foreign offices, which is included in lines banks constitute a universe; data for small domestic banks and foreign-related institutions are 25, 53, 81, and 109. estimates based on weekly samples and on quarter-end condition reports. Data are adjusted 7. Excludes unearned income, reserves for losses on loans and leases, and reserves for for breaks caused by reclassifications of assets and liabilities. transfer risk. Loans are reported gross of these items. 2. Excludes federal funds sold to, reverse repurchase agreements with, and loans to 8. Excludes the due-to position with related foreign offices, which is included in lines 25, commercial banks in the United States. 53, 81, and 109. 3. Consists of reserve repurchase agreements with broker-dealers and loans to purchase 9. This balancing item is not intended as a measure of equity capital for use in capital and carry securities. adequacy analysis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1996 AAccccoouunntt July 3 July 10 July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 ASSETS 1 Cash and balances due from depository institutions 125,567 113,182r 121,647 109,03 lr 130,333 112,971 115,647 108,841 116,821 2 U.S. Treasury and government securities 275,30 lr 274,458r 273,825r 274,822r 276,125' 275,939 274,624 269,193 270,536 3 Trading account 19,693 19,343 18,671 18,847 21,740 22,003 21,912 18,357 20,047 4 Investment account 255,609r 255,115r 255,154r 255,976r 254,385' 253,936 252,712 250,836 250.489 5 Mortgage-backed securities1 116,184r 116,016r 115,085 115,354 116,003 115,524 116,262 114,386 115,089 All others, by maturity One year or less 33,424 32,917 33,661 34,451 31,970 31,664 31,941 32,514 31,858 7 One year through five years 59,845r 60,099r 59,796r 59,414r 59,351' 59,259 57,032 56,487 56,681 8 More than five years 46,156r 46,082r 46,612r 46,757r 47,061' 47,490 47,476 47,448 46,861 9 Other securities 121,919r 121,696r 122,680' 119,404r 114,417' 121,493 123,372 120,774 114,690 10 Trading account 2,403 2,325 2,274 2,114 2,271 2,232 3,901 3,669 3,389 11 Investment account 63,403 62,886 62,978 62,395 62,278 62,039 62,005 61,482 60,219 12 State and local government, by maturity 18,303 18,368 18,399 18,658 18,770 18,697 18,732 18,694 18,719 13 One year or less 3,634 3,720 3,807 3,794 3,872 3,936 3,966 3,946 3,952 14 More than one year 14,669 14,648 14,592 14,864 14,898 14,760 14,766 14,748 14,767 15 Other bonds, corporate stocks, and securities 45,100 44,518 44,578 43,737 43,509 43,342 43,273 42,788 41,500 16 Other trading account assets 56,113r 56,484r 57,428r 54,894r 49,868' 57,222 57,466 55,623 51,082 17 Federal funds sold2 122,635 105,554 105,366 103,366 116,856 100,008 110,234 106,145 102,216 18 To commercial banks in the United States 91,258 75,201 74,976 75,560 87,541 72,475 82,388 79,747 76,740 19 To nonbank brokers and dealers in securities 25,629 25,948 25,731 23,547 22,708 23,566 23,769 21,924 20,437 20 To others 5,748 4,405 4,658 4,259 6,606 3,967 4,076 4,474 5,039 21 Other loans and leases, gross l,333,955r 1,327,949r l,334,218r 1,332,862' 1,332,808' 1,330,800 1,329,385 1,334,096 1,333,622 22 Commercial and industrial 363,277r 359,35 lr 360,818r 360,332' 361,152' 359,337 357,820 359,840 359,119 23 Bankers acceptances and commercial paper 1,365 1,404 1,437 1,453 1,536 1,528 1,570 1,573 1,626 24 All other 361,91 r 357,947r 359,381r 358,879' 359,617' 357,809 356,250 358,267 357,493 25 U.S. addressees 359,216r 355,187r 356,548r 355,973' 356,789' 355,016 353,429 355,387 354,617 26 Non-U.S. addressees 2,696 2,759 2,832 2,907 2,828' 2,793 2,821 2,880 2,876 27 Real estate loans 521,651 521,806 521,466 522,547 522,517' 524,073 525,408 524,124 523,367 28 Revolving, home equity 49,187 49,224 49,529 49,813 49,881 49,984 50,027 49,7-50 49,878 29 All other 472,464 472,582 471,937 472,734 472,636' 474,089 475,382 474,375 473,490 30 To individuals for personal expenditures 259,682r 259,83 lr 261,317r 262,870' 262,372' 262,154 263,571 266,070 267,427 31 To depository and financial institutions 75,806 77,635 81,484 77,282 75,904 76,067 74,952 75,704 75,401 32 Commercial banks in the United States 42,590 43,813 45,983 44,555 43,551 44,175 43,630 44,334 43,461 33 Banks in foreign countries 3,637 4,367 6,471 4,838 3,752 3,918 3,575 3,835 3,996 34 Nonbank depository and other financial institutions 29,580 29,455 29,030 27,889 28,601 27,974 27,747 27,534 27,944 35 For purchasing and carrying securities 15,411 14,899 14,561 14,891 15,186 13,848 13,007 13,544 13,712 36 To finance agricultural production 7,295 7,286 7,305 7,259 7,254 7,215 7,187 7,136 7,147 37 To states and political subdivisions 10,613 10,606 10,698 10,690 10,695 10,668 10,596 10,643 10,598 38 To foreign governments and official institutions 1,079 1,046 1,313 960 959 939 897 865 888 39 All other loans 29,980 25,923 25,500 26,166 26,246' 25,881 24,833 25,432 25,105 40 Lease-financing receivables 49,161 49,567 49,755 49,863 50,521 50,618 51,113 50,738 50,858 41 LESS: Unearned income 1,988 2,018 2,037 2,148 2,132 2,127 2,184 2,156 2,150 42 Loan and lease reserve3 33,617 33,602 33,782 33,781 33,957 33,979 34,020 33,963 33,883 43 Other loans and leases, net l,298,351r l,292,328r l,298,399r 1,296,933' 1,296,719' 1,294,694 1,293,181 1,297,976 1,297,589 44 All other assets 172,833r 173,947r 173,522r 173,053' 175,676' 177,284 178,485 176,487 177,956 45 Total assets 2,116,605r 2,081,165r 2,095,440r 2,076,608r 2,110,126r 2,082,389 2,095,544 2,079,417 2,079,808 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • November 1996 1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1996 AAccccoouunntt July 3 July 10 July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 LIABILITIES 46 Deposits 1,289,564' 1,264,555' 1,263,211 1,253,938 1,283,227' 1,274,042 1,280,105 1,258,687 1,261,757 47 Demand deposits 334,379' 314,610' 313,598 304,755 331,143' 312,771 314,765 296,862 304,377 48 Individuals, partnerships, and corporations 286,287' 272,047 269,945 262,340 284,906' 269,880 272,386 255,318 261,588 49 Other holders 48,091 42,563' 43,653 42,415 46,237 42,891 42,378 41,544 42,789 50 States and political subdivisions 8,647 7,715 7,816 7,938 9,328 8,151 8,006 7,554 8,084 51 U.S. government 2,466 1,681 1,619 1,765 2,321 1,790 1,855 1,801 1,545 52 Depository institutions in the United States 22,769 19,972' 19,370 19,596 21,449 21,000 20,419 19,612 19,477 53 Banks in foreign countries 5,861 5,439 6,871 5,168 4,566 4,575 4,268 5,020 5,503 54 Foreign governments and official institutions 761 539 802 523 807 551 863 509 541 55 Certified and officers' checks 7,587 7,218 7,175 7,424 7,766 6,825 6,967 7,049 7,639 56 Transaction balances other than demand deposits4 70,075' 70,509' 70,722' 70,079' 70,994' 67,187 65,918 66,764 66,830 57 Nontransaction balances 885,110' 879,436' 878,892' 879,104' 881,091' 894,084 899,422 895,062 890,550 58 Individuals, partnerships, and corporations 857,029' 851,185' 850,638' 850,794' 852,344' 864,990 870,444 866,738 862,425 59 Other holders 28,081' 28,251 28,254 28,310 28,747' 29,094 28,979 28,323 28,125 60 States and political subdivisions 22,008' 22,179 22,059 22,131 22,489 22,831 22,570 21,786 21,761 61 U.S. government 4,242 4,004 4,010 4,005 4,138' 4,123 4,107 4,088 4,076 62 Depository institutions in the United States 1,424 1,531 1,675 1,663 1,684' 1,716 1,851 1,998 1,826 63 Foreign governments, official institutions, and banks .. 406 536 509 510 436 424 451 451 462 64 Liabilities for borrowed money5 406,565' 400,228' 412,179' 400,518' 407,122' 390,314 396,442 391,402 395,436 65 Borrowings from Federal Reserve Banks 0 0 0 0 1,381 0 20 0 0 66 Treasury tax and loan notes 6,145' 2,692 12,317' 18,540 22,647' 7,989 5,226 9,566 8,973 67 Other liabilities for borrowed money6 400,420' 397,536' 399,862' 381,979' 383,094' 382,325 391,197 381,836 386,463 68 Other liabilities (including subordinated notes and debentures) ... 214,045' 208,998' 212,699' 213,632' 211,718' 211,171 211,584 221,039 215,181 69 Total liabilities 1,910,174r l,873,781r l,888,089r l,868,088r l,902,068r 1,875,527 1,888,131 1,871,128 1,872,374 70 Residual (total assets less total liabilities)7 206,431' 207,383 207,351 208,520' 208,058' 206,862 207,413 208,289 207,435 MEMO 71 Total loans and leases, gross, adjusted, plus securities8 1,719,963' 1,710,643' 1,715,130' 1,710,339' 1,709,113' 1,711,591 1,711,597 1,706,126 1,700,863 72 Time deposits in amounts of $100,000 or more 130,282 130,983 131,296 132,154 130,448 133,259 135,756 136,345 136,205 73 Loans sold outright to affiliates9 980 974 967 958 951 942 934 926 919 74 Commercial and industrial 263 263 263 263 263 263 263 262 262 75 Other 717 711 704 695 689 680 671 663 656 76 Foreign branch credit extended to U.S. residents10 29,032' 28,721' 28,662' 28,766' 28,895' 28,228 28,406 28,319 28,587 77 Net owed to related institutions abroad 74,003' 68,022' 69,383' 73,302' 71,933' 66,378 62,858 74,169 68,097 1. Includes certificates of participation, issued or guaranteed by agencies of the U.S. 8. Excludes loans to and federal funds transactions with commercial banks in the government, in pools of residential mortgages. United States. 2. Includes securities purchased under agreements to resell. 9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank affiliates of 3. Includes allocated transfer risk reserve. 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 (ATS) subsidiaries of the holding company. accounts, and telephone and preauthorized transfers of savings deposits. 10. Credit extended by foreign branches of domestically chartered weekly reporting banks 5. Includes borrowings only from other than directly related institutions. to nonbank U.S. residents. Consists mainly of commercial and industrial loans, but includes 6. Includes federal funds purchased and securities sold under agreements to repurchase. an unknown amount of credit extended to other than nonfinancial businesses. 7. This balancing item is not intended as a measure of equity capital for use in capitaladequacy analysis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1996 AAccccoouunntt July 3 July 10 July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 ASSETS 1 Cash and balances due from depository institutions 15,588 15,069 15,486 15,065 15,508 15,790 15,450 15,070 15,557 2 U.S. Treasury and government agency securities 50,301 50,927 51,105 51,780 52,247 52,858 54,089 53,680 54,683 3 Other securities 39,819 40,206 40,838 40,101 40,252 41,235 39,500 39,628 39,614 4 Federal funds sold1 28,122 28,779 28,406 26,480 26,710 26,954 27,591 20,926 23,724 5 To commercial banks in the United States 6,072 6,667 6,531 4,831 5,674 3,827 5,117 3,006 6,078 6 To others2 22,050 22,112 21,875 21,650 21,036 23,127 22,474 17,920 17,646 7 Other loans and leases, gross 193,652 192,435 194,750 194,536 194,731 194,302 193,547 194,350 193,996 8 Commercial and industrial 122,738r 121,833' 123,292 123,294 122,401 122,092 121,474 122,284 122,473 9 Bankers acceptances and commercial paper . 5,096 4,979 4,953 4,951 4,718 4,653 4,543 4,540 4,555 10 All other 117,643' 116,854r 118,339 118,344 117,684 117,439 116,931 117,745 117,918 11 U.S. addressees 110,815r 109,934r 111,360 111,388 110,747 110,527 110,509 111,202 111,333 12 Non-U.S. addressees 6,827 6,919 6,979 6,956 6,936 6,912 6,422 6,543 6,585 13 Loans secured by real estate 1199,,997799 2200,,110055 19,848 19,837 19,890 19,847 19,995 20,085 20,067 14 Loans to depository and financial institutions 37,352 37,529 38,773 38,397 39,340 38,918 39,330 38,990 38,849 15 Commercial banks in the United States 2,715 2,704 2,709 2,586 2,584 2,641 2,584 2,553 3,197 16 Banks in foreign countries 3,334 3,244 3,518 3,351 3,370 3,057 3,176 3,155 3,195 17 Nonbank financial institutions 31,302 31,581 32,546 32,460 33,385 33,220 33,570 33,282 32,457 18 For purchasing and carrying securities 5,920 5,300 5,444 5,490 5,472 5,609 5,032 5,316 5,131 19 To foreign governments and official institutions 773 778 775 787 933 976 934 840 867 20 All other 6,890r 6,890r 6,619 6,731 6,696 6,859 6,782 6,834 6,609 21 Other assets (claims on nonrelated parties) 32,944 33,634 34,049 34,490 35,740 35,242 36,813 35,158 38,657 22 Total assets3 387,099 387,109 388,883 388,071 393,033 392,458 394,928 390,489 396,478 LIABILITIES 23 Deposits or credit balances owed to other than directly related institutions 104,020 106,582 109,787 109,304 109,190 107,388 107,220 110,536 113,839 24 Demand deposits4 4,203 4,095 4,664 3,839 4,192 3,982 3,894 3,973 4,102 25 Individuals, partnerships, and corporations .... . 3,503 3,413 4,015 3,223 3,416 3,365 3,224 3,317 3,434 26 Other 700 683 648 616 776 617 670 656 668 27 Nontransaction accounts 99,818 102,486 105,123 105,465 104,997 103,405 103,327 106,563 109,737 28 Individuals, partnerships, and corporations .... 73,784 74,867 76,480 76,329 75,548 75,487 76,829 78,953 81,717 29 Other 2266,,003344 27,619 28,643 29,136 29,449 27,918 26,498 27,610 28,020 30 Borrowings from other than directly related institutions 83,982 81,803 78,595 80,900 86,068 87,963 84,257 81,837 81,345 31 Federal funds purchased5 53,652 52,091 48,083 48,649 53,673 56,351 53,072 50,919 47,147 32 From commercial banks in the United States . . 11,635 10,089 7,897 9,042 13,688 13,339 12,363 12,699 10,186 33 From others 42,018 42,001 40,186 39,607 39,985 43,012 40,710 38,220 36,961 34 Other liabilities for borrowed money 30,329 29,712 30,512 32,251 32,395 31,612 31,185 30,917 34,198 35 To commercial banks in the United States 3,953 4,129 3,712 3,612 3,641 3,820 3,597 3,591 3,643 36 To others 26,377 25,583 26,800 28,639 28,754 27,793 27,588 27,326 30,555 37 Other liabilities to nonrelated parties 55,731 56,051 55,708 55,563 57,353 56,440 56,846 55,574 57,650 38 Total liabilities6 387,099 387,109 388,883 388,071 393,033 392,458 394,928 390,489 396,478 MEMO 39 Total loans (gross) and securities, adjusted7 303,106 302,976 305,859 305,481 305,682 308,881 307,027 303,025 302,742 40 Net owed to related institutions abroad 116,692 116,615 120,544 116,686 112,577 114,590 118,668 110,866 113,398 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 United 4. Includes other transaction deposits. States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Financial Statistics • November 1996 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period Year ending December 1996 IItteemm 1991 1992 1993 1994 1995 Feb. Mar. Apr. May June July Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 528,832 545,619 555,075 595,382 674,904 687,669 695,230 710,690 719,069 731,027 734,731 FFiinnaanncciiaall ccoommppaanniieess'' 22 DDeeaalleerr--ppllaacceedd ppaappeerr"",, ttoottaall 212,999 226,456 218,947 223,038 275,815 293,313 291,600 302,504 301,670 310,524 317,426 33 DDiirreeccttllyy ppllaacceedd ppaappeerr33,, ttoottaall 182,463 171,605 180,389 207,701 210,829 208,046 208,880 211,833 221,463 223,236 222,583 44 NNoonnffiinnaanncciiaall ccoommppaanniieess44 133,370 147,558 155,739 164,643 188,260 186,310 194,750 196,352 195,936 197,267 194,722 Bankers dollar acceptances (not seasonally adjusted) 5 Total 43,770 38,194 32,348 29,835 29,242 By holder 6 Accepting banks 11,017 10,555 12,421 11,783 7 Own bills 9,347 9,097 10,707 10,462 T 8 Bills bought from other banks 1,670 1,458 1,714 1,321 1 Federal Reserve Banks6 9 Foreign correspondents 1,739 1,276 725 410 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Others 31,014 26,364 19,202 17,642 By basis 11 Imports into United States 12,843 12,209 10,217 10,062 12 Exports from United States 10,351 8,096 7,293 6,355 13 All other 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 institutions. personal, and mortgage financing; factoring, finance leasing, and other business lending; The reporting group is revised every January. Beginning January 1995, data for Bankers insurance underwriting; and other investment activities. 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 for 3. As reported by financial companies that place their paper directly with investors. 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. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change Rate Period rate Period rate Period rate 11999933——JJaann.. 11 66..0000 1993 6.00 1994—Jan 6.00 1995—Jan 8.50 1994 7.15 Feb 6.00 Feb 9.00 1994—Mar. 24 6.25 1995 8.83 Mar 6.06 Mar. 9.00 Apr. 19 6.75 Apr 6.45 Apr 9.00 May 17 7.25 1993—Jan 6.00 May 6.99 May 9.00 Aug. 16 7.75 Feb 6.00 June 7.25 June 9.00 Nov. 15 8.50 Mar 6.00 July 7.25 July 8.80 Apr. 6.00 Aug 7.51 Aug 8.75 1995—Feb. 1 9.00 May 6.00 Sept 7.75 Sept 8.75 July 7 8.75 June 6.00 Oct 7.75 Oct 8.75 Dec. 20 8.50 July 6.00 Nov 8.15 Nov 8.75 Aug 6.00 Dec 8.50 Dec 8.65 1996—Feb. 1 8.25 Sept 6.00 Oct 6.00 1996—Jan 8.50 Nov 6.00 Feb 8.25 Dec 6.00 Mar 8.25 Apr. 8.25 May 8.25 June 8.25 July 8.25 Aug 8.25 Sept 8.25 1. The prime rate is one of several base rates that banks use to price short-term business Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) loans. The table shows the date on which a new rate came to be the predominant one quoted monthly statistical releases. For ordering address, see inside front cover, by a majority of the twenty-five largest banks by asset size, based on the most recent Call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 1996 1996, week ending IItteemm 11999933 11999944 11999955 May June July Aug. Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 MONEY MARKET INSTRUMENTS 1 Federal funds''2'3 3.02 4.21 5.83 5.24 5.27 5.40 5.22 5.53 5.38 5.10 5.18 5.21 2 Discount window borrowing ' 3.00 3.60 5.21 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Commercial paper5,5,6 3 1-month 3.17 4.43 5.93 5.38 5.45 5.44 5.39 5.43 5.39 5.39 5.36 5.39 4 3-month 3.22 4.66 5.93 5.39 5.49 5.53 5.42 5.52 5.43 5.40 5.40 5.43 5 6-month 3.30 4.93 5.93 5.42 5.57 5.67 5.51 5.65 5.49 5.48 5.47 5.54 Finance paper, directly placed3,5,7 6 1-month 3.12 4.33 5.81 5.29 5.35 5.33 5.28 5.32 5.29 5.29 5.26 5.27 7 3-month 3.16 4.53 5.78 5.29 5.37 5.43 5.31 5.43 5.32 5.29 5.29 5.31 8 6-month 3.15 4.56 5.68 5.23 5.35 5.44 5.33 5.44 5.34 5.32 5.32 5.32 Bankers acceptances3'5,8 9 3-month 3.13 4.56 5.81 5.29 5.38 5.45 5.32 5.44 5.33 5.31 5.29 5.33 10 6-month 3.21 4.83 5.80 5.31 5.47 5.57 5.40 5.56 5.40 5.35 5.35 5.43 Certificates of deposit, secondary market3,9 11 1-month 3.11 4.38 5.87 5.32 5.37 5.37 5.32 5.35 5.32 5.32 5.30 55..3322 12 3-month 3.17 4.63 5.92 5.36 5.46 5.53 5.40 5.52 5.41 5.39 5.37 5.42 13 6-month 3.28 4.96 5.98 5.47 5.64 5.75 5.57 5.72 5.56 5.54 5.54 5.61 14 Eurodollar deposits, 3-month3'10 3.18 4.63 5.93 5.36 5.46 5.49 5.41 5.51 5.44 5.38 5.38 5.40 U.S. Treasury bills Secondary market3'5 15 3-month 3.00 4.25 5.49 5.02 5.09 5.15 5.05 5.15 5.03 5.03 5.02 5.09 16 6-month 3.12 4.64 5.56 5.12 5.25 5.30 5.13 5.24 5.11 5.11 5.10 5.18 17 1-year 3.29 5.02 5.60 5.33 5.48 5.52 5.35 5.48 5.30 5.30 5.34 5.48 Auction average3'5,11 18 3-month 3.02 4.29 5.51 5.02 5.11 5.17 5.09 5.20 5.08 5.04 5.06 55..0077 19 6-month 3.14 4.66 5.59 5.12 5.26 5.32 5.17 5.34 5.13 5.08 5.13 5.16 20 1-year 3.33 5.02 5.69 5.31 5.56 5.49 5.36 n.a. n.a. n.a. 5.36 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 3.43 5.32 5.94 5.64 5.81 5.85 5.67 5.80 5.60 5.62 5.64 5.81 22 2-year 4.05 5.94 6.15 6.10 6.30 6.27 6.03 6.17 5.95 5.96 6.00 6.22 23 3-year 4.44 6.27 6.25 6.27 6.49 6.45 6.21 6.34 6.12 6.13 6.18 6.41 24 5-year 5.14 6.69 6.38 6.48 6.69 6.64 6.39 6.52 6.28 6.31 6.38 6.60 25 7-year 5.54 6.91 6.50 6.66 6.83 6.76 6.52 6.63 6.41 6.44 6.51 6.73 26 10-year 5.87 7.09 6.57 6.74 6.91 6.87 6.64 6.76 6.54 6.56 6.63 6.84 27 20-year 6.29 7.49 6.95 7.11 7.22 7.14 6.97 7.03 6.86 6.90 6.98 7.17 28 30-year 6.59 7.37 6.88 6.93 7.06 7.03 6.84 6.94 6.75 6.77 6.84 7.03 Composite 29 More than 10 years (long-term) 6.45 7.41 6.93 7.08 7.20 7.13 6.94 7.02 6.83 6.87 6.94 7.14 STATE AND LOCAL NOTES AND BONDS Moody's series'3 30 Aaa 5.38 5.77 5.80 5.75 5.67 5.83 5.64 5.72 5.65 5.61 5.62 5.61 31 Baa 5.83 6.17 6.10 5.97 5.98 5.96 5.85 5.92 5.88 5.79 5.82 5.82 32 Bond Buyer series14 5.60 6.18 5.95 5.98 6.02 5.92 5.76 5.79 5.67 5.74 5.75 5.86 CORPORATE BONDS 33 Seasoned issues, all industries15 7.54 8.26 7.83 7.91 8.00 7.95 7.76 7.85 7.66 7.69 7.77 7.95 Rating group 34 Aaa 7.22 7.97 7.59 7.62 7.71 7.65 7.46 7.55 7.35 7.39 7.48 7.66 35 Aa 7.40 8.15 7.72 7.77 7.87 7.82 7.63 7.73 7.53 7.57 7.64 7.82 36 A 7.58 8.28 7.83 7.94 8.02 7.97 7.77 7.86 7.67 7.70 7.78 7.95 37 Baa 7.93 8.63 8.20 8.30 8.40 8.35 8.18 8.27 8.08 8.11 8.18 8.35 38 A-rated, recently offered utility bonds16 7.46 8.29 7.86 8.02 8.13 8.07 7.87 7.76 7.73 7.81 7.98 8.16 MEMO Dividend-price ratio17 39 Common stocks 2.78 2.82 2.56 2.21 2.21 2.28 2.22 2.31 2.23 2.23 2.21 2.21 1. The daily effective federal funds rate is a weighted average of rates on trades through 12. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Depart- New York brokers. ment 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 used 3. Annualized using a 360-day year for bank interest. in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' 4. Rate for the Federal Reserve Bank of New York. Al 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 selected 6. An average of offering rates on commercial paper placed by several leading dealers for long-term bonds. firms whose bond rating is AA or the equivalent. 16. Compilation of the Federal Reserve. This series is an estimate of the yield on recently 7. An average of offering rates on paper directly placed by finance companies. offered, A-rated utility bonds with a thirty-year maturity and five years of call protection. 8. Representative closing yields for acceptances of the highest-rated money center banks. Weekly data are based on Friday quotations. 9. An average of dealer offering rates on nationally traded certificates of deposit. 17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in 10. Bid rates for Eurodollar deposits at approximately 11:00 a.m. London time. Data are the price index. for indication purposes only. NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and 11. Auction date for daily data; weekly and monthly averages computed on an issue-date G. 13 (415) monthly statistical releases. For ordering address, see inside front cover. basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Financial Statistics • November 1996 1.36 STOCK MARKET Selected Statistics 1995 1996 IInnddiiccaattoorr 11999933 11999944 11999955 Dec. Jan. Feb. Mar. Apr. May June July Aug. Prices and trading volume (averages of daily figures)1 CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 ======= 55555550000000))))))) 249.71 254.16 291.18 327.90 329.22 346.46 346.73 347.50 354.84 358.32 345.06 354.59 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 300.10 315.32 367.40 412.11 413.05 435.92 439.55 441.99 452.63 458.30 438.58 444.91 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 242.68 247.17 270.14 303.53 300.43 315.29 324.77 326.42 334.66 331.57 316.57 321.61 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 114.55 104.96 110.64 123.95 127.09 135.51 122.83 122.44 124.86 123.60 122.66 122.37 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 216.55 209.75 238.48 273.36 274.96 290.97 290.44 287.92 290.43 294.42 287.89 302.95 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111-------44444443333333 ======= 11111110000000)))))))2222222 451.63 460.42 541.72 614.57 614.42 649.54 647.07 647.17 661.23 668.50 644.06 662.68 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 ======= 55555550000000)))))))3333333 438.77 449.49 498.13 538.01 540.48 562.34 565.69 580.60 600.93 591.99 550.16 554.88 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 263,374 290,652 345,729 384,310 416,048 434,607 426,198 419,941 404,184 392,413 398,245 333,343 9999999 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 18,188 17,951 20,387 21,085 21,069 27,107 22,988 24,886 28,127 23,903 21,281 17,916 Customer financing (millions of dollars, end-of-period balances) 11111110000000 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrr-------dddddddeeeeeeeaaaaaaallllllleeeeeeerrrrrrrsssssss4444444 60,310 61,160 76,680 76,680 73,530 77,090 78,308 81,170 86,100 87,160 79,860 82,980 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss5555555 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss6666666 12,360 14,095 16,250 16,250 14,950 15,840 15,770 15,780 16,890 16,800 17,700 17,520 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 27,715 28,870 34,340 34,340 32,465 34,700 33,113 33,100 33,760 33,775 32,935 32,680 Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 11111113333333 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn ssssssstttttttoooooooccccccckkkkkkksssssss 70 80 65 55 65 50 11111114444444 CCCCCCCooooooonnnnnnnvvvvvvveeeeeeerrrrrrrtttttttiiiiiiibbbbbbbllllllleeeeeee bbbbbbbooooooonnnnnnndddddddsssssss 50 60 50 50 50 50 11111115555555 SSSSSSShhhhhhhooooooorrrrrrrttttttt sssssssaaaaaaallllllleeeeeeesssssss 70 80 65 55 65 50 1. Daily data on prices are available upon request to the Board of Governors. For ordering purchase and carry "margin securities" (as defined in the regulations) when such credit is address, see inside front cover. collateralized by securities. Margin requirements on securities other than options are the 2. In July 1976 a financial group, composed of banks and insurance companies, was added difference between the market value (100 percent) and the maximum loan value of collateral to the group of stocks on which the index is based. The index is now based on 400 industrial as prescribed by the Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and effective May 1, 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective 40 financial. Nov. 1, 1971. 3. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the previous readings in half. initial margin required for writing options on securities, setting it at 30 percent of the current 4. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the included credit extended against stocks, convertible bonds, stocks acquired through the required initial margin, allowing it to be the same as the option maintenance margin required exercise of subscription rights, corporate bonds, and government securities. Separate report- by the appropriate exchange or self-regulatory organization; such maintenance margin rules ing of data for margin stocks, convertible bonds, and subscription issues was discontinued in must be approved by the Securities and Exchange Commission. Effective Jan. 31, 1986, the April 1984. SEC approved new maintenance margin rules, permitting margins to be the price of the option 5. Free credit balances are amounts in accounts with no unfulfilled commitments to plus 15 percent of the market value of the stock underlying the option. brokers and are subject to withdrawal by customers on demand. Effective June 8, 1988, margins were set to be the price of the option plus 20 percent of the 6. Series initiated in June 1984. market value of the stock underlying the option (or 15 percent in the case of stock-index 7. Margin requirements, stated in regulations adopted by the Board of Governors pursuant options). ' to the Securities Exchange Act of 1934, limit the amount of credit that can be used to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1996 11999933 11999944 11999955 Mar. Apr. May June July Aug. U.S. budget' 1 Receipts, total 1,153,535 1,257,737 1,355,213 89,087r 203,468' 90,122' 151,995' 103,893' 99,996 2 On-budget 841,601 922,711 1,004,134 56,753' 160,856' 60,184' 116,794' 75,282' 71,505 3 Off-budget 311,934 335,026 351,079 32,334 42,612 29,938 35,201 28,611 28,491 4 Outlays, total 1,408,675 1,460,841 1,519,133 136,366' 131,072' 143,422' 117,898' 130,989' 141,828 5 On-budget 1,142,088 1,181,469 1,230,469 108,445' 105,210' 114,566' 104,241' 104,454' 113,840 6 Olf-budget 266,587 279,372 288,664 27,921 25,862 28,856 13,657 26,455 27,987 7 Surplus or deficit (—), total -255,140 -203,104 -163,920 -47,279' 72,396' -53,300' 34,097' -27,096 -41,831 8 On-budget -300,487 -258,758 -226,335 -51,688 55,643 -54,380 12,557 -29,252 -42,335 9 Off-budget 45,347 55,654 62,415 4,413 16,750 1,082 21,544 2,156 504 Source of financing (total) 10 Borrowing from the public 248,619 185,344 171,288 39,189 -35,466 20,633 -8,619 29,098 16,160 11 Operating cash (decrease, or increase (—)) 6,283 16,564 -2,007 9,283 -26,449 43,809 -33,519 1,262 23,705 12 Other 2 238 1,196 -5,361 -193' -10,481' -11,142' 8,041' -3,264 1,966 MEMO 13 Treasury operating balance (level, end of period) 52,506 35,942 37,949 21,874 48,323 4,514 38,033 36,771 13,066 14 Federal Reserve Banks 17,289 6,848 8,620 7,021 11,042 3,757 7,701 6,836 5,149 15 Tax and loan accounts 35,217 29,094 29,329 14,853 37,281 757 30,332 29,936 7,917 1. Since 1990, off-budget items have been the social security trust funds (federal old-age net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loansurvivors insurance and federal disability insurance) and the U.S. Postal Service. valuation adjustment; and profit on sale of gold. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets; Receipts and Outlays of the U.S. Government; fiscal year totals: U.S. Office of Management accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous and Budget, Budget of the U.S. Government. liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Financial Statistics • November 1996 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1994 1995 1996 1996 11999944 11999955 H2 HI H2 HI June July Aug. RECEIPTS 1 All sources 1,257,737 1,355,213 625,781r 711,003r 656,865r 767,099r 151,995r 103,893r 99,996 2 Individual income taxes, net 543,055 590,244 273,315 307,498 292,393 347,285 60,816 49,814 46,105 3 Withheld 459,699 499,927 240,063 251,398 256,916 264,177 35,941 48,072 43,834 4 Nonwithheld 160,433 175,855 42,029 132,001 43,100 162,782 26,926 3,631 4,007 5 Refunds 77,077 85,538 8,787 75,959 10,058 79,735 22,,006611 11,,889933 11,,773377 Corporation income taxes 6 Gross receipts 154,205 174,422 78,393 92,132 88,302 96,480 37,950 5,656 3,718 7 Refunds 13,820 17,418 7,747 10,399 7,518 9,704 992 681 644 8 Social insurance taxes and contributions, net . . . 461,475 484,473 220,140 261,837 224,269 277,767 45,583 39,258 40,953 9 Employment taxes and contributions2 428,810 451,045 206,615 241,557 211,323 257,446 44,888 36,946 36,562 10 Unemployment insurance 28,004 28,878 11,177 18,001 10,702 18,068 400 1,939 3,994 11 Other net receipts3 4,661 4,550 2,349 2,279 2,247 2,254 295 372 397 12 Excise taxes 55,225 57,484 30,178 27,452 30,014 25,682 4,310 4,508 4,033 13 Customs deposits 20,099 19,301 11,041 8,848 9,849 8,731 1,450 1,712 1,807 14 Estate and gift taxes 15,225 14,763 7,067 7,425 7,718 8,775 1,141 1,259 1,566 15 Miscellaneous receipts4 22,274 31,944 13,395r 16,21 R 1 l,839r 12,087r l,738r 2,368r 2,459 OUTLAYS 16 All types 1,460,841 1,519,133 752,378r 761,289r 752,983r 786,206r 117,898r 130,989r 141,828 17 National defense 281,642 272,066 141,885 135,648 132,913r 133,439 19,769 22,541 26,000 18 International affairs 17,083 16,434 11,889 4,797 6,928r 8,074 837 497 969 19 General science, space, and technology 16,227 16,724 7,604 8,611 8,809r 8,897 1,536 1,660 1,526 20 Energy 5,219 4,936 2,923 2,358 2,203 1,355 822 187 153 21 Natural resources and environment 21,064 22,105 11,911 10,273 12,632r 10,238 1,543 2,062 1,821 22 Agriculture 15,046 9,773 7,623 4,039 3,062 71 -124 843 627 23 Commerce and housing credit -5,118 -14,441 -4,042r - 13,471r -3,940r —6,861r - l,289r —223r -1,678 24 Transportation 38,066 39,350 21,835 18,193 19,930r 18,291 3,185 3,648 3,583 25 Community and regional development 10,454 10,641 6,283 5,073 6,192r 5,237 896 959 1,021 26 Education, training, employment, and social services 46,307 54,263 27,450 25,893 24,945r 26,137 3,903 3,108 5,037 27 Health 107,122 115,418 54,147 59,057 56,986r 59,957 9,762 10,077 10,352 28 Social security and Medicare 464,312 495,701 236,817 251,975 251,387 264,649 44,731 45,376 46,205 29 Income security 214,031 220,449 101,806 117,190 104,121r 121,032 11,332 18,189 20,125 30 Veterans benefits and services 37,642 37,938 19,761 19,269 18,684 18,164 1,570 3,255 4,657 31 Administration of justice 15,256 16,223 7,753 8,051 8,114r 9,021 1,327 1,989 1,460 32 General government 11,303 13,835 7,355 5,796 7,620r 4,641 1,755 53 1,390 33 Net interest5 202,957 232,173 109,434 116,169 119,351 120,579 18,977 20,311 21,460 34 Undistributed offsetting receipts6 -37,772 -44,455 -20,066 -17,631 -26,995r -16,716 -2,636 -3,543 -2,880 1. Functional details do not sum to total outlays for calendar year data because revisions to 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. monthly totals have not been distributed among functions. Fiscal year total for receipts and 5. Includes interest received by trust funds. outlays do not correspond to calendar year data because revisions from the Budget have not 6. Rents and royalties for the outer continental shelf, U.S. government contributions for been fully distributed across months. employee retirement, and certain asset sales. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S. 3. Federal employee retirement contributions and civil service retirement and Government, Fiscal Year 1997', monthly and half-year totals: U.S. Department of the Treadisability fund. sury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1994 1995 1996 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 4,673 4,721 4,827 4,891 4,978 5,001 5,017 5,153 5,197 2 Public debt securities 4,646 4,693 4,800 4,864 4,951 4,974 4,989 5,118 5,161 3 Held by public 3,443 3,480 3,543 3,610 3,635 3,653 3,684 3,764 3,739r 4 Held by agencies 1,203 1,213 1,257 1,255 1,317 1,321 1,305 1,354 1,422r 5 Agency securities 28 29 27 27 27 27 28 36 36 6 Held by public 27 29 27 26 27 27 28 28 28r 7 Held by agencies 0 0 0 0 0 0 0 8 8r 8 Debt subject to statutory limit 4,559 4,605 4,711 4,775 4,861 4,885 4,900 5,030 5,073 9 Public debt securities 4,559 4.605 4,711 4,774 4,861 4,885 4,900 5,030 5,073 10 Other debt1 0 0 0 0 0 0 0 0 0 MEMO 11 Statutory debt limit 4,900 4,900 4,900 4,900 4,900 4,900 4,900 5,500 5,500 1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District of Colum- United States and Treasury Bulletin. bia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1995 1996 Type and holder 11999922 11999933 11999944 11999955 Q3 Q4 Qt Q2 1 Total gross public debt 4,177.0 4,535.7 4,800.2 4,988.7 4,974.0 4,988.7 5,117.8 5,161.1 By type 2 Interest-bearing 4,173.9 4,532.3 4,769.2 4,964.4 4,950.6 4,964.4 5,083.0 5,126.8 3 Marketable 2,754.1 2,989.5 3,126.0 3,307.2 3,260.5 3,307.2 3,375.1 3,348.4 4 Bills 657.7 714.6 733.8 760.7 742.5 760.7 811.9 773.6 5 Notes 1,608.9 1,764.0 1,867.0 2,010.3 1,980.3 2,010.3 2,014.1 2,025.8 6 Bonds 472.5 495.9 510.3 521.2 522.6 521.2 534.1 534.1 7 Nonmarketable1 1,419.8 1,542.9 1,643.1 1,657.2 1,690.2 1,657.2 1,707.9 1,778.3 8 State and local government series 153.5 149.5 132.6 104.5 113.4 104.5 96.5 97.8 9 Foreign issues2 37.4 43.5 42.5 40.8 41.0 40.8 40.4 37.8 10 Government 37.4 43.5 42.5 40.8 41.0 40.8 40.4 37.8 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 155.0 169.4 177.8 181.9 181.2 181.9 183.0 183.8 13 Government account series' 1,043.5 1,150.0 1,259.8 1,299.6 1,324.3 1,299.6 1,357.7 1,428.5 14 Non-interest-bearing 3.1 3.4 31.0 24.3 23.3 24.3 34.8 34.3 By holder 4 15 U.S. Treasury and other federal agencies and trust funds 1,047.8 1,153.5 1,257.1 1,304.5 1,320.8 1,304.5 1,353.8 1,422.4 16 Federal Reserve Banks 302.5 334.2 374.1 391.0 374.1 391.0 381.0 391.0 17 Private investors 2,839.9 3,047.4 3,168.0 3,294.9 3,279.5 3,294.9 3,382.8 3,347.3 18 Commercial banks 294.4 322.2 290.1 278.3' 289.0 278.3r 283.8r 285.0 19 Money market funds 79.7 80.8 67.6 71.3 64.2 71.3 87.3 82.2 20 Insurance companies 197.5 234.5 240.1 250.8r 249.8 250.8r 256.0r 258.0 21 Other companies 192.5 213.0 226.5 228.8 224.1 228.8 229.0 230.9 22 State and local treasuries5,6 563.3 605.9 483.4 352.2r 389.8r 352.2r 336.8r 340.0 Individuals 23 Savings bonds 157.3 171.9 180.5 185.0 183.5 185.0 185.8 186.5 2 2 4 5 Fo O re t i h g e n r a s n e d c u i r n it t i e e r s n ational7 5 1 4 3 9 1 . . 7 9 6 1 2 3 3 7 . . 0 9 6 1 8 5 8 0 . . 7 7 r 8 1 6 6 2 2 . . 7 r 8 1 4 6 8 2 . . 4 4 r 8 1 6 6 2 2 . . 7 lr 9 1 3 6 0 1 . . 2 4 r 9 1 5 6 8 1 . . 6 1 26 Other miscellaneous investors6,8 673.5 658.3 840.5 903.7r 868.3r 903.7r 912.51 845.0 1. Includes (not shown separately) securities issued to the Rural Electrification Administra- 7. Consists of investments of foreign balances and international accounts in the United tion, depository bonds, retirement plan bonds, and individual retirement bonds. States. 2. Nonmarketable series denominated in dollars, and series denominated in foreign cur- 8. Includes savings and loan associations, nonprofit institutions, credit unions, mutual rency held by foreigners. savings banks, coiporate 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 actual SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the holdings; data for other groups are Treasury estimates. Public Debt of the United States; data by holder, Treasury Bulletin. 5. Includes state and local pension funds. 6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable federal securities was removed from "Other miscellaneous investors" and added to "State and local treasuries." The data shown here have been revised accordingly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics • November 1996 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1996 1996, week ending IItteemm May June July July 3 July 10 July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 47,278 52,915 46,390 51,172 45,975 46,759 44,730 45,143 47,041 43,231 46,545 39,674 Coupon securities, by maturity 2 Five years or less 94,636 99,169 93,494 99,661 89,231 102,734 101,135 76,322 104,567 83,093 77,785 97,868 3 More than five years 49,383 43,649 45,289 50,178 53,013 48,832 40,111 37,812 62,312 49,012 30,936 35,349 4 Federal agency 29,131 33,225 35,258 36,166 35,736 34,710 35,317 34,819 34,653 32,270 34,576 32,101 5 Mortgage-backed 35,929 35,542 34,569 27,774 52,724 41,762 27,177 24,319 50,491 45,748 21,839 25,725 By type of counterparty With interdealer broker 6 U.S. Treasury 111,032 113,378 106,573 113,246 106,315 115,888 108,081 91,951 125,877 104,309 89,581 103,422 7 Federal agency 661 704 664 575 629 748 662 665 732 749 624 752 8 Mortgage-backed 13,422 13,267 12,537 11,624 18,216 15,669 10,056 7,890 18,927 18,508 8,450 8,664 With other 9 U.S. Treasury 80,265 82,355 78,600 87,765 81,904 82,436 77,896 67,327 88,043 71,027 65,685 69,470 10 Federal agency 28,470 32,521 34,593 35,591 35,108 33,962 34,654 34,154 33,921 31,521 33,951 31,349 11 Mortgage-backed 22,507 22,275 22,032 16,150 34,509 26,093 17,121 16,429 31,565 27,240 13,389 17,060 FUTURES TRANSACTIONS3 By type of deliverable security 12 U.S. Treasury bills 410 539 229 250 265 316 0 100 501 185 492 489 Coupon securities, by maturity 13 Five years or less 1,550 1,761 1,607 1,781 1,494 1,945 1,774 1,086 1,411 1,180 1,016 2,461 14 More than five years 12,854 12,742 10,873 11,299 11,484 11,291 11,071 9,513 13,547 12,263 7,848 10,634 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 0 0 0 0 0 0 Coupon securities, by maturity 18 Five years or less 2,294 2,937 2,000 3,186 1,417 2,187 1,978 1,588 2,573 958 2,414 3,348 19 More than five years 4,057 4,494 4,018 4,119 4,806 4,064 3,654 3,644 4,514 3,633 3,922 5,323 20 Federal agency 0 0 0 0 0 0 0 0 0 0 0 0 21 Mortgage-backed 1,046 786 688 740 1,089 590 633 489 1,468 679 347 784 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 of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. 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 on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgage- Major changes in the report form filed by primary dealers induced a break in the dealer data backed agency securities include purchases and sales for which delivery is scheduled in thirty business series as of the week ending July 6, 1994. 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

Federal Finance A25 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1996 1996, week ending IItteemm May June July July 3 July 10 July 17 July 24 July 31 Aug. 7 Aug. 14 Aug. 21 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 15,447 13,791 15,044 4,854 10,113 12,921 23,286 18,225 19,424 12,998 11,995 Coupon securities, by maturity 2 Five years or less 2,210 -4,136 -9,294 -3,448 -14,023 -10,059 -8,166 -7,432 1,032 -7,984 -5,983 3 More than five years -23,291 -20,940 -19,269 -19,366 -17,599 -19,276 -20,244 -19,916 -16,741 -14,345 -13,114 4 Federal agency 23,921 22,350 22,053 17,632 18,296 22,818 24,189 24,804 23,371 26,541 21,955 5 Mortgage-backed 34,206 35,764 38,520 38,307 37,003 39,147 40,305 37,716 37,010 37,774 37,422 NET FUTURES POSITIONS4 By type of deliverable security 6 U.S. Treasury bills -4,625 -2,006 -2,592 -1,681 -1,571 -2,778 -3,226 -3,183 -4,692 -4,535 -4,764 Coupon securities, by maturity 7 Five years or less 632 254 -1,701 -2,202 -1,978 -2,079 -1,015 -1,518 -2,528 -1,703 -1,148 8 More than five years -3,598 -7,798 -13,999 -14,039 -11,211 -12,557 -15,194 -17,018 -23,152 -23,643 -20,824 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 0 0 0 0 0 Coupon securities, by maturity 12 Five years or less -139 -2,515 -1,205 -2,225 -732 -908 -1,058 -1,684 -715 -1,656 -108 13 More than five years -703 670 2,650 3,123 1,884 1,162 3,229 4,124 6,180 5,375 3,682 14 Federal agency 0 0 0 0 0 0 0 n.a. n.a. 0 0 15 Mortgage-backed 3,902 3,075 2,614 2,425 2,886 2,548 2,604 2,497 2,808 1,659 1,384 Financing5 Reverse repurchase agreements 16 Overnight and continuing 249,222r 240,787' 260,875 252,900' 264,615 260,483 247,408 274,411 285,085 291,849 278,152 17 Term 450,364r 460,370' 477,948 448,037' 472,180 484,794 504,395 463,241 507,603 517,732 444,359 Securities borrowed 18 Overnight and continuing 172,896r 179,225' 181,614 176,983' 182,069 118855,,227755 181,803 179,293 180,119 181,528 179,466 19 Term 63,987 60,592 60,925 61,379 59,185 58,974 64,132 61,216 63,113 64,606 69,349 Securities received as pledge 20 Overnight and continuing 2,488 5,063 4,636 5,605 5,503 4,516 4,060 4,048 4,097 4,219 4,188 21 Term 52 82 51 51 56 56 49 41 58 49 150 Repurchase agreements 22 Overnight and continuing 550,518r 532,929' 551,594 523,993' 555,512 559,773 552,387 563,340 584,929 591,179 579,684 23 Term 390,908r 406,928' 424,060 403,430' 409,499 421,494 446,562 414,721 459,451 469,594 396,729 Securities loaned 24 Overnight and continuing 4,804 5,341 4,471 4,670 4,697 4,915 4,384 3,801 4,115 3,871 4,512 25 Term 3,094 3,160 3,258 3,160 3,133 3,159 3,524 n.a. n.a. n.a. 3,565 Securities pledged 26 Overnight and continuing 41,591 46,541 38,698 40,053 39,833 40,852 37,337 36,189 38,115 41,662 43,917 27 Term 6,797 6,584 6,917 7,664 7,595 6,566 6,668 6,517 6,032 6,167 5,496 Collateralized loans 28 Overnight and continuing n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 29 Term n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 30 Total 12,091 12,155 16,304 15,312 17,456 16,791 15,549 15,843 18,666 18,755 23,795 MEMO: Matched book6 Securities in 31 Overnight and continuing 244,563r 243,743' 269,271 253,387' 270,749 271,466 265,450 276,228 296,111 287,195 268,821 32 Term 439,694r 446,306' 466,817 437,325' 458,142 472,511 495,021 454,233 491,491 516,880 448,112 Securities out 33 Overnight and continuing 346,849r 342,400' 366,527 343,064' 371,767 367,488 367,318 369,592 387,206 387,485 371,295 34 Term 335,38 LR 351,950' 372,816 355,092' 359,348 376,809 395,394 367,309 411,653 427,653 359,536 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 futures Reserve Bank of New York by the U.S. government securities dealers on its published list of positions are included regardless of time to delivery. primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar 5. Overnight financing refers to agreements made on one business day that mature on the days of the report week are assumed to be constant. Monthly averages are based on the next business day; continuing contracts are agreements that remain in effect for more than one number of calendar days in the month. business day but have no specific maturity and can be terminated without advance notice by 2. Securities positions are reported at market value. either party; term agreements have a fixed maturity of more than one business day. Financing 3. Net outright positions include immediate and forward positions. Net immediate posi- data are reported in terms of actual funds paid or received, including accrued interest. tions include securities purchased or sold (other than mortgage-backed agency securities) that 6. Matched-book data reflect financial intermediation activity in which the borrowing and have been delivered or are scheduled to be delivered in five business days or less and lending transactions are matched. Matched-book data are included in the financing break- "when-issued" securities that settle on the issue date of offering. Net immediate positions for downs given above. The reverse repurchase and repurchase numbers are not always equal mortgage-backed agency securities include securities purchased or sold that have been because of the "matching" of securities of different values or different types of collateralizadelivered or are scheduled to be delivered in thirty business days or less. tion. Forward positions reflect agreements made in the over-the-counter market that specify NOTE, "n.a." indicates that data are not published because of insufficient activity. delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt Major changes in the report form filed by primary dealers induced a break in the dealer data securities are included when the time to delivery is more than five business days. Forward series as of the week ending July 6, 1994. contracts for mortgage-backed agency securities are included when the time to delivery is more than thirty business days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • November 1996 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1996 AAggeennccyy 11999922 11999933 11999944 11999955 Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies 483,970 570,711 738,928 844,611 840,384 846,807 n.a. 868,599 2 Federal agencies 41,829 45,193 39,186 37,347 31,986 31,284 31,449 31,029 3 Defense Department1 7 6 6 6 6 6 6 6 4 Export-Import Bank2,3 7,208 5,315 3,455 2,050 2,050 2,015 2,015 2,015 5 Federal Housing Administration4 374 255 116 97 35 52 56 56 n. a. 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 10,660 9,732 8,073 5,765 300 300 300 n.a. 8 Tennessee Valley Authority 23,580 29,885 27,536 29,429 29,595 28,911 29,072 28,952 9 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Federally sponsored agencies7 442,141 523,452 699,742 807,264 808,398 815,523 n.a. 837,570 847,807 11 Federal Home Loan Banks 114,733 139,512 205,817 243,194 233,404 239,253 242,437 243,389 249,240 12 Federal Home Loan Mortgage Corporation 29,631 49,993 93,279 119,961 123,777 124,278 136,185 141,248 143,363 13 Federal National Mortgage Association 166,300 201,112 257,230 299,174 304,159 306,815 306,361 305,050 308,385 14 Farm Credit Banks 51,910 53,123 53,175 57,379 57,536 59,428 60,815 61,197 62,182 15 Student Loan Marketing Association9 39,650 39,784 50,335 47,529 49,495 45,723 47,052 46,735 44,718 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 154,994 128,187 103,817 78,681 68,037 66,725 66,079 64,931 Lending to federal and federally sponsored agencies 20 Export-Import Bank" 7,202 5,309 3,449 2,044 2,044 2,009 2,009 2,009 21 Postal Service6 10,440 9,732 8,073 5,765 300 300 300 n.a. 22 Student Loan Marketing Association 4,790 4,760 n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority 6,975 6,325 3,200 3,200 n.a. n.a. n.a. n.a. n.a. 24 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Other lending14 25 Farmers Home Administration 42,979 38,619 33,719 21,015 21,015 21,015 21,015 21,015 26 Rural Electrification Administration 18,172 17,578 17,392 17,144 17,040 17,049 16,940 16,944 27 Other 64,436 45,864 37,984 29,513 27,638 26,352 25,815 24,964 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 insurance 12. The Resolution Funding Corporation, established by the Financial Institutions Reform, claims. Once issued, these securities may be sold privately on the securities market. Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989. 5. Certificates of participation issued before fiscal year 1969 by the Government National 13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations Mortgage Association acting as trustee for the Farmers Home Administration, the Department issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the of Health, Education, and Welfare, the Department of Housing and Urban Development, the purpose of lending to other agencies, its debt is not included in the main portion of the table to Small Business Administration, and the Veterans Administration. 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. Includes guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally Federal Agricultural Mortgage Corporation; therefore details do not sum to total. Some data being small. The Farmers Home Administration entry consists exclusively of agency assets, are estimated. whereas the Rural Electrification Administration entry consists of both agency assets and 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is 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

Securities Market and Corporate Finance A31 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1996 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11999933 11999944 11999955'' oorr uussee Jan. Feb. Mar. Apr. May June July Aug. 1 All issues, new and refunding1 279,945 153,950 145,657 12,328r 12,523r 16,341r 14,591r 15,694r 18,015r ll,583r 12,687 By type of issue 2 General obligation 90,599 54,404 56,980 6,074 2,063 4,846 5,083 5,476 6,493 4,078 4,173 3 Revenue 189,346 99,546 88,677 5,471 9,535 10,398 8,116 9,515 10,040 7,084 8,514 By type of issuer 4 State 27,999 19,186 14,665 1,630 695 904 926 2,807 1,047 680 378 5 Special district or statutory authority 178,714 95,896 93,500 7,052 7,820 10,141 9,571 9,824 9,899 6,923' 8,591 6 Municipality, county, or township 73,232 38,868 37,492 2,863 3,083 4,199 2,702 2,360 5,587 3,559 3,718 7 Issues for new capital 91,434 105,972 102,390 6,820r 6,812r ll,140r 9,487 9,594 13,864 9,364 7,833 By use of proceeds 8 Education 16,831 21,267 23,964 2,065 2,226 1,847 2,142 2,442 33,,445533 1,859 22,,333388 9 Transportation 9,167 10,836 11,890 573 359 1,417 682 778 1,390 547 620 10 Utilities and conservation 12,014 10,192 9,618 439 582 892 592 1,368 974 984 489 11 Social welfare 13,837 20,289 19,566 935 904 2,715 1,669 1,764 3,152 2,074 2,556 12 Industrial aid 6,862 8,161 6,581 322 110 785 751 302 414 326 218 13 Other purposes 32,723 35,227 30,771 2,183 2,202 2,965 3,651 2,940 4,481 3,574 1,612 1. Par amounts of long-term issues based on date of sale. SOURCE. 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 Type of issue, offering, or issuer Apr. May July 1 All issues 769,088 583,240 40,149 49,495r 62,065r 55,666 48,818r 69,191r 65,662r 39,989 2 Bonds2 646,634 498,039 34,619 44,739r 52,905r 48,256 36,318r 55,909r 52,921r 32,700 By type of offering 3 Public, domestic 487,029 365,222 408,806 45,922 41,419 30,559' 46,840' 44,875' 27,700 4 Private placement, domestic3 . 121,226 76,065 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 38,379 56,755 76,910 2,399 9,321 6,984 6,837 5,759 9,069 8,046 5,000 By industry group 6 Manufacturing 88,160 43,423 42,950 3,205 3,952 2,522 3,335 2,503 5,887' 5,367' 4,210 7 Commercial and miscellaneous 58,559 40,735 37,139 3,099 2,277 2,840 3,803 2,663 4,933 4,272 3,432 8 Transportation 10,816 6,867 5,727 1,240 664 584 137 120 819 850 815 9 Public utility 56,330 13,322 11,974 685 1,906 965 788 444 691 1,144 2,034 10 Communication 31,950 13,340 18,158 648 748 2,64 r 2,253 724 1,097' 2,231 847 11 Real estate and financial 400,820 380,352 369,769 25,742 35,192r 43,354 37,941 29,864' 42,481' 39,059' 21,362 12 Stocks2 122,454 85,155 5,530 4,756 9,160 7,402' 12,500 13,282 12,749r 7,289 By type of offering 13 Public preferred 18,897 12,570 10,964 2,167 3,258 967 2,000 1,660 3,195 1,544 14 Common 82,657 47,828 57,809 4,640 2,589 5,902 6,435r 10,500 11,622 9,554' 5,745 15 Private placement3 20,900 24,800 By industry group 16 Manufacturing 22,271 17,798 681 295 1,543 2,036 3,968 2,777 2,526' 1,623 17 Commercial and miscellaneous 25,761 15,713 2,632 2,521 2,659 3,585r 4,122 5,041 6,606' 2,560 18 Transportation 2,237 2,203 156 38 141 232 37 322 189 143 19 Public utility 7,050 2,214 322 115 809 319 149 147 569 229 20 Communication 3,439 494 0 200 122 100 144 1,205 837 1,144 21 Real estate and financial 61,004 46,733 1,739 1,588 3,719 1,130 4,079 3,789 2,023' 1,590 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data cover only public offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data are not available. exclude secondary offerings, employee stock plans, investment companies other than closed- SOURCE. Beginning July 1993, Securities Data Company and the Board of Governors of end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include the Federal Reserve System. ownership securities issued by limited partnerships. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics • November 1996 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 1995 1996 IItteemm 11999944 11999955 Dec. Jan. Feb. Mar. Apr. May June July 1 Sales of own shares2 841,286 871,415 94,719 112,332 90,370 93,856 101,310 96,501 88,115 93,053 2 Redemptions of own shares 699,823 699,497 67,945 75,354 60,398 65,748 81,005 69,419 69,072 76,485 3 Net sales3 141,463 171,918 26,774 36,978 29,972 28,108 20,305 27,082 19,044 16,568 4 Assets4 1,550,490 2,067,337 2,067,337 2,143,185 2,181,711 2,212,517 2,293,491 2,356,307 2,363,024 2,297,216 5 Cash5 121,296 142,572 142,572 150,772 144,520 142,697 148,777 145,554 144,275 148,647 6 Other 1,429,195 1,924,765 1,924,765 1,992,414 2,037,191 2,069,820 2,144,713 2,201,752 2,218,749 2,147,337 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 market 5. Includes all U.S. Treasury securities and other short-term debt securities. 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 gains comprises substantially all open-end investment companies registered with the Securities and distributions and share issue of conversions from one fund to another in the same group. Exchange Commission. Data reflect underwritings of newly formed companies after their 3. Excludes sales and redemptions resulting from transfers of shares into or out of money initial offering of securities. 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 1994 1995 1996 AAccccoouunntt 11999933 11999944 11999955 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2r 1 Profits with inventory valuation and capital consumption adjustment 464.4 529.5 586.6 553.1 570.9 560.0 562.3 612.5 611.8 645.1 655.8 2 Profits before taxes 464.3 531.2 598.9 550.8 572.4 594.5 589.6 607.2 604.2 642.2 644.6 3 Profits-tax liability 163.8 195.3 218.7 203.4 213.5 217.3 214.2 224.5 218.7 233.4 236.4 4 Profits after taxes 300.5 335.9 380.2 347.4 358.8 377.2 375.3 382.8 385.5 408.8 408.1 5 Dividends 197.3 211.0 227.4 212.5 218.5 221.7 224.6 228.5 234.7 239.9 243.1 6 Undistributed profits 103.2 124.8 152.8 134.9 140.3 155.5 150.8 154.3 150.8 168.9 165.1 7 Inventory valuation -6.6 -13.3 -28.1 -16.5 -22.8 -51.9 -42.3 -9.3 -8.8 -17.4 -11.0 8 Capital consumption adjustment 6.7 11.6 15.9 18.8 21.3 17.4 15.0 14.6 16.5 20.4 22.3 SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A3 3 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1994 1995 1996 AAccccoouunntt 11999933 11999944 11999955 Q3 Q4 QI Q2 Q3 Q4 QL ASSETS 1 Accounts receivable, gross2 482.8 551.0 614.6 524.1 551.0 568.5 586.9 594.7 614.6 621.8 2 Consumer 116.5 134.8 152.0 130.3 134.8 135.8 141.7 146.2 152.0 151.9 3 Business 294.6 337.6 375.9 317.2 337.6 351.9 361.8 362.4 375.9 380.9 4 Real estate 71.7 78.5 86.6 76.6 78.5 80.8 83.4 86.1 86.6 89.1 5 LESS: Reserves for unearned income 50.7 55.0 63.2 51.1 55.0 58.9 62.1 61.2 63.2 61.5 6 Reserves for losses 11.2 12.4 14.1 12.1 12.4 12.9 13.7 13.8 14.1 14.2 7 Accounts receivable, net 420.9 483.5 537.3 460.9 483.5 496.7 511.1 519.7 537.3 546.1 8 All other 170.9 183.4 210.7 177.2 183.4 194.6 198.1 198.1 210.7 212.8 9 Total assets 591.8 666.9 748.0 638.1 666.9 691.4 709.2 717.8 748.0 758.9 LIABILITIES AND CAPITAL 10 Bank loans 25.3 21.2 23.1 21.6 21.2 21.0 21.5 21.8 23.1 23.5 11 Commercial paper 159.2 184.6 184.5 171.0 184.6 181.3 181.3 178.0 184.5 184.8 Debt 12 Owed to parent 42.7 51.0 62.3 50.0 51.0 52.5 57.5 59.0 62.3 62.3 13 Not elsewhere classified 206.0 235.0 284.7 228.2 235.0 254.4 264.4 272.1 284.7 291.4 14 All other liabilities 87.1 99.5 106.2 95.0 99.5 102.5 102.1 102.4 106.2 105.7 15 Capital, surplus, and undivided profits 71.4 75.7 87.2 72.3 75.7 79.7 82.5 84.4 87.2 91.1 16 Total liabilities and capital 591.8 666.9 748.0 638.1 666.9 691.4 709.2 717.8 748.0 758.9 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. 1.52 DOMESTIC FINANCE COMPANIES Consumer, Real Estate, and Business Credit1 Millions of dollars, amounts outstanding, end of period 1996 TTyyppee ooff ccrreeddiitt Feb. Mar. Apr. May June July Seasonally adjusted 1 Total 546,103 615,618 691,616 700,977 703,398 708,343 710,367 719,536 724,717 2 Consumer 160,227 176,085 198,861 202,548 203,280 205,184 207,027 210,341 212,814 3 Real estate2 72,043 78,910 87,077 88,188 89,502 89,943 90,180 93,917 95,088 4 Business 313,833 360,624 405,678 410,241 410,616 413,216 413,160 415,278 416,815 Not seasonally adjusted 5 Total 550,751 620,975 697,340 701,576 705,650 710,762 712,429 722,597 718,052 6 Consumer 162,770 178,999 202,101 202,108 202,337 203,532 205,678 209,851 210,777 7 Motor vehicles 56,057 61,609 70,061 73,312 72,129 73,810 74,327 74,286 75,038 8 Other consumer3 60,396 73,221 81,988 81,214 79,779 79,489 80,435 80,344 81,311 9 Securitized motor vehicles4 36,024 31,897 33,633 30,364 31,093 30,476 31,435 34,826 33,731 10 Securitized other consumer4 10,293 12,272 16,419 17,218 19,336 19,757 19,481 20,395 20,697 11 Real estate2 71,727 78,479 86,606 88,520 89,056 89,975 90,182 93,100 95,336 12 Business 316,254 363,497 408,633 410,948 414,257 417,255 416,569 419,646 411,939 13 Motor vehicles 95,173 118,197 133,277 132,153 134,098 134,500 134,196 137,477 132,543 14 Retail loans5 18,091 21,514 25,304 26,591 27,140 27,954 27,151 29,032 28,373 15 Wholesale loans6 31,148 35,037 36,427 33,386 33,910 32,155 31,360 32,095 26,506 16 Leases 45,934 61,646 71,546 72,176 73,048 74,391 75,685 76,350 77,664 17 Equipment 145,452 157,953 177,297 176,461 177,285 178,507 178,151 178,983 177,949 18 Loans7 43,514 49,358 59,109 57,574 57,909 57,576 57,327 58,788 57,621 19 Leases 101,938 108,595 118,188 118,887 119,376 120,931 120,824 120,195 120,328 20 Other business8 53,997 61,495 65,363 68,070 69,497 69,193 68,112 67,210 66,548 21 Securitized business assets4 21,632 25,852 32,696 34,264 33,377 35,055 36,110 35,976 34,899 22 Retail loans 2,869 4,494 4,723 4,252 4,067 4,367 4,790 4,688 4,613 23 Wholesale loans 10,584 14,826 21,327 23,460 22,622 24,327 25,028 24,950 23,988 24 Leases 8,179 6,532 6,646 6,552 6,688 6,361 6,292 6,338 6,298 1. Includes finance company subsidiaries of bank holding companies but not of retailers 5. Passenger car fleets and commercial land vehicles for which licenses are required. and banks. Data are before deductions for unearned income and losses. Data in this table also 6. Credit arising from transactions between manufacturers and dealers, that is, floor plan appear in the Board's G.20 (422) monthly statistical release. For ordering address, see inside financing. front cover. 7. Beginning with the June 1996 data, retail and wholesale business equipment loans have 2. Includes all loans secured by liens on any type of real estate, for example, first and junior been combined and are no longer separately available. mortgages and home equity loans. 8. Includes loans on commercial accounts receivable, factored commercial accounts, and 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of receivable dealer capital; small loans used primarily for business or farm purposes; and consumer goods such as appliances, apparel, general merchandise, and recreation vehicles. wholesale and lease paper for mobile homes, campers, and travel trailers. 4. Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originator. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • November 1996 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1996 IItteemm 11999933 11999944 11999955 Feb. Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 163.1 170.4 175.8 181.7 184.5 175.2 179.5 180.1 194.0 184.8 2 Amount of loan (thousands of dollars) 123.0 130.8 134.5 143.2 141.5 133.2 137.6 139.4 144.2 141.1 3 Loan-to-price ratio (percent) 78.0 78.8 78.6 80.3 77.8 78.4 79.3 78.7 76.2 77.7 4 Maturity (years) 26.1 27.5 27.7 27.8 26.4 27.1 27.2 25.8 26.7 27.2 5 Fees and charges (percent of loan amount)2 1.30 1.29 1.21 1.24 1.30 1.17 1.16 1.31 1.25 1.38 Yield (percent per year) 6 Contract rate1 7.03 7.26 7.65 7.00 7.25 7.57 7.61 7.75 7.80 7.85 7 Effective rate1'3 7.24 7.47 7.85 7.20 7.49 7.76 7.80 8.05 8.01 8.08 8 Contract rate (HUD series)4 7.37 8.58 8.05 7.56 7.97 8.22 8.34 8.37 8.28 8.45 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 7.46 8.68 8.18 7.57 8.09 8.52 8.57 8.55 8.56 8.58 10 GNMA securities6 6.65 7.96 7.57 6.85 7.40 7.63 7.81 7.91 7.84 7.68 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 190,861 222,057 253,511 257,970 262,014 263,809 267,330 270,042 272,458 275,133 12 FHA/VA insured 23,857 27,558 28,762 28,502 28,744 29,132 30,442 30,936 30,830 30,803 13 Conventional 167,004 194,499 224,749 229,468 233,270 234,677 236,888 239,106 241,628 244,330 14 Mortgage transactions purchased (during period) 92,037 62,389 56,598 5,371 7,681 5,339 6,720 5,421 5,345 5,360 Mortgage commitments (during period) 15 Issued7 92,537 54,038 56,092 7,013 6,293 5,599 5,228 5,280 5,036 5,673 16 To sell8 5,097 1,820 360 0 29 0 13 0 0 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 55,012 72,693 107,424 114,793 117,420 119,520 121,058 123,806 125,574 127,345 18 FHA/VA insured 321 276 267 223 220 216 212 209 205 205 19 Conventional 54,691 72,416 107,157 114,570 117,200 119,304 120,846 123,597 125,369 127,140 Mortgage transactions (during period) 20 Purchases 229,242 124,697 98,470 10,891 11,984 12,740 12,385 10,266 9,934 9,643 21 Sales 208,723 117,110 85,877 9,733 11,384 11,958 11,904 9,969 9,496 8,994 22 Mortgage commitments contracted (during period)9 274,599 136,067 118,659 10,378 14,520 13,009 11,075 11,164 10,626 8,992 1. Weighted averages based on sample surveys of mortgages originated by major institu- 6. Average net yields to investors on fully modified pass-through securities backed by tional lender groups for purchase of newly built homes; compiled by the Federal Housing mortgages and guaranteed by the Government National Mortgage Association (GNMA), 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 the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. 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 U.S. 9. Includes conventional and government-underwritten loans. The Federal Home Loan Department of Housing and Urban Development (HUD). Based on transactions on the first Mortgage Corporation's mortgage commitments and mortgage transactions include activity day of the subsequent month. under mortgage securities swap programs, whereas the corresponding data for FNMA 5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured exclude swap activity. 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

Real Estate A35 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1995 1996 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999922 11999933 11999944 Q2 Q3 Q4 Q1 Q2P 1 All holders 4,091,827r 4,266,657r 4,472,693r 4,581,594r 4,657,832r 4,706,654r 4,775,361 4,859,561 By type of property 2 One- to four-family residences 3,036,251r 3,225,371' 3,429,616' 3,521,129' 3,587,678' 3,626,772' 3,682,227 3,749,867 3 Multifamily residences 274,234 270,796 275,304' 280,429' 284,276' 287,935' 291,979 296,888 4 Nonfarm, nonresidential 700,604 689,296 684,803 696,228' 701,525' 707,328' 715,940 726,308 5 Farm 80,738 81,194 82,971 83,808' 84,352' 84,620' 85,215 86,498 By type of holder b Major financial institutions 1,769,187 1,767,835 1,815,810 1,868,175 1,895,285 1,888,977' 1,894,809 1,916,216 7 Commercial banks2 894,513 940,444 1,004,280 1,053,048 1,072,780 1,080,373 1,087,216 1,099,554 8 One- to four-family 507,780 556,538 611,697 648,705 662,126 663,588 665,405 669,925 9 Multifamily 38,024 38,635 38,916 40,593 43,003 43,846 44,705 45,222 10 Nonfarm, nonresidential 328,826 324,409 331,100 340,176 343,826 349,109 353,174 359,845 11 Farm 19,882 20,862 22,567 23,575 23,824 23,829 23,931 24,561 12 Savings institutions3 627,972 598,330 596,199 599,745 604,614 596,789 595,908 606,163 13 One- to four-family 489,622 469,959 477,499 482,005 489,150 482,765 483,367 492,692 14 Multifamily 69,791 67,362 64,400 64,404 63,569 61,926 60,427 60,720 15 Nonfarm, nonresidential 68,235 60,704 54,011 53,054 51,604 51,809 51,814 52,433 16 Farm 324 305 289 282 291 288 300 317 17 Life insurance companies 246,702 229,061 215,332 215,382 217,892 211,815' 211,686 210,499 18 One- to four-family 11,441 9,458 7,910 7,610' 7,701' 7,476' 7,472 7,428 19 Multifamily 27,770 25,814 24,306 24,347' 24,638' 23,920' 23,906 23,764 20 Nonfarm, nonresidential 198,269 184,305 173,539 173,830' 175,910' 170,783' 170,681 169,670 21 Farm 9,222 9,484 9,577 9,596 9,643 9,636' 9,627 9,637 22 Federal and related agencies 286,263 327,014 319,327' 313,039' 314,353' 313,760' 312,950 314,694 23 Government National Mortgage Association 30 22 6 7 2 2 2 2 24 One- to four-family 30 15 6 7 2 2 2 2 25 Multifamily 0 7 0 0 0 0 0 0 26 Farmers Home Administration4 41,695 41,386 41,781 41,917 41,858 41,791 41,594 41,547 27 One- to four-family 16,912 15,303 13,826 13,217 12,914 12,643 12,327 11,982 28 Multifamily 10,575 10,940 11,319 11,512 11,557 11,617 11,636 11,645 29 Nonfarm, nonresidential 5,158 5,406 5,670 5,949 6,096 6,248 6,365 6,552 30 Farm 9,050 9,739 10,966 11,239 11,291 11,282 11,266 11,369 31 Federal Housing and Veterans' Administrations 12,581 12,215 10,964 10,098 9,535 9,809 8,439 8,052 32 One- to four-family 5,153 5,364 4,753 4,838 4,918 5,180 4,228 3,861 33 Multifamily 7,428 6,851 6,211 5,260 4,617 4,629 4,211 4,191 34 Resolution Trust Corporation 32,045 17,284 10,428 6,456 4,889 1,864 0 0 35 One- to four-family 12,960 7,203 5,200 2,870 2,299 691 0 0 36 Multifamily 9,621 5,327 2,859 1,940 1,420 647 0 0 37 Nonfarm, nonresidential 9,464 4,754 2,369 1,645 1,170 525 0 0 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 0 14,112 7,821 6,039 5,015 4,303 5,553 5,016 40 One- to four-family 0 2,367 1,049 731 618 492 839 840 41 Multifamily 0 1,426 1,595 1,135 722 428 1,100 955 42 Nonfarm, nonresidential 0 10,319 5,177 4,173 3,674 3,383 3,614 3,221 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 137,584 166,642 178,059 178,462 182,229 183,782 183,531 186,041 45 One- to four-family 124,016 151,310 162,160 162,674 166,393 168,122 167,895 170,572 46 Multifamily 13,568 15,332 15,899 15,788 15,836 15,660 15,636 15,469 47 Federal Land Banks 28,664 28,460 28,555 28,005 28,151 28,428 28,891 29,362 48 One- to four-family 1,687 1,675 1,671 1,648 1,656 1,673 1,700 1,728 49 Farm 26,977 26,785 26,885 26,357 26,495 26,755 27,191 27,634 50 Federal Home Loan Mortgage Corporation 33,665 46,892 41,712' 42,055' 42,673' 43,781' 44,939 44,674 51 One- to four-family 31,032 44,345 38,882' 38,794' 39,239' 39,929' 40,877 40,477 52 Multifamily 2,633 2,547 2,830 3,261 3,434 3,852 4,062 4,197 53 Mortgage pools or trusts5 l,433,183r 1,562,925' 1,717,991' 1,759,039' 1,795,041 1,853,632' 1,894,711 1,946,036 54 Government National Mortgage Association 419,516 414,066 450,934 457,108' 463,654 472,317' 475,854 485,454 55 One- to four-family 410,675 404,864 441,198 446,862' 453,114 461,472' 464,675 473,963 56 Multifamily 8,841 9,202 9,736 10,246 10,540 10,845 11,179 11,491 57 Federal Home Loan Mortgage Corporation 407,514 447,147 490,851 498,216 503,370 515,051 524,327 536,671 58 One- to four-family 401,525 442,612 487,725 495,182 500,417 512,238 521,722 534,238 59 Multifamily 5,989 4,535 3,126 3,034 2,953 2,813 2,605 2,433 60 Federal National Mortgage Association 444,979 495,525 530,343 543,669 559,585 582,959 599,546 621,285 61 One- to four-family 435,979 486,804 520,763 533,091 548,400 569,724 585,527 606,271 62 Multifamily 9,000 8,721 9,580 10,578 11,185 13,235 14,019 15,014 63 Farmers Home Administration4 38 28 19 13 12 11 10 9 64 One- to four-family 8 5 3 2 2 2 1 1 65 Multifamily 0 0 0 0 0 0 0 0 66 Nonfarm, nonresidential 17 13 9 6 5 5 5 4 67 Farm 13 10 7 5 5 4 4 4 68 Private mortgage conduits 161,136r 206,159' 245,844' 260,033' 268,420 283,294 294,974 302,616 69 One- to four-family6 139,637' 171,988' 194,145' 202,658' 207,679 214,635 219,392 221,380 70 Multifamily 6,305 8,701 14,925 17,281 18,903 21,279 24,477 26,696 71 Nonfarm, nonresidential 15,194 25,469 36,774 40,094 41,838 47,380 51,104 54,541 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 603,194' 608,884' 619,565' 641,341' 653,153' 650,286' 672,891 682,615 74 One- to four-family 447,795' 455,560' 461,130' 480,234' 491,050' 486,140' 506,798 514,507 75 Multifamily 64,688 65,397 69,601 71,051' 71,898' 73,237' 74,015 75,090 76 Nonfarm, nonresidential 75,441 73,917 76,153 77,301' 77,401' 78,084' 79,182 80,042 77 Farm 15,270 14,009 12,681 12,755' 12,804' 12,824' 12,896 12,975 1. Multifamily debt refers to loans on structures of five or more units. 6. Includes securitized home equity loans. 2. Includes loans held by nondeposit trust companies but not loans held by bank trust 7. Other holders include mortgage companies, real estate investment trusts, state and local departments. credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and 3. Includes savings banks and savings and loan associations. finance companies. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from SOURCE. Based on data from various institutional and government sources. Separation of FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting nonfarm mortgage debt by type of property, if not reported directly, and interpolations and changes by the Farmers Home Administration. extrapolations, when required for some quarters, are estimated in part by the Federal Reserve. 5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by Line 69 from Inside Mortgage Securities and other sources. the agency indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic NonfinancialS tatistics • November 1996 1.55 CONSUMER INSTALLMENT CREDIT1 Millions of dollars, amounts outstanding, end of period 1996 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999933 11999944 11999955 Feb. Mar. Apr. May Juner July Seasonally adjusted 1 Total 844,118 966,457 l,103,296r l,124,709r 1,135,732' 1,143,347' 1,149,329' 1,156,004 1,163,713 2 Automobile 279,786 317,182 350,848r 355,136 357,752 360,460 361,627 367,193 369,122 3 Revolving 287,011 339,337 413,894 425,658 431,249' 438,436' 444,654' 446,752 453,992 4 Other2 277,321 309,939 338,554r 343,915r 346,731' 344,451' 343,048' 342,060 340,599 Not seasonally adjusted 5 Total 863,924 990,247 1,131,881' 1,121,802' 1,125,387r 1,132,591' 1,139,556' 1,148,831 1,153,973 By major holder 6 Commercial banks 399,683 462,923 507,753r 500,333' 500,929' 506,678' 505,318' 507,809 511,582 7 Finance companies 116,453 134,830 152,624 154,365 151,749 153,299 155,893 155,864 156,349 8 Credit unions 101,634 119,594 131,939 130,839 130,837 131,844 133,367 134,582 136,874 9 Savings institutions 37,855 38,468 40,106 40,448 40,762 41,000 41,000 40,323 40,323 10 Nonfinancial business3 77,229 86,621 85,061 78,138 76,681 73,765 74,680 72,063 71,232 11 Pools of securitized assets4 131,070 147,811 214,398r 217,679 224,429' 226,005' 229,298' 238,190 237,613 By major type of credit 12 Automobile 281,538 319,715 354,055r 352,907 354,061 356,014 358,948 365,705 367,958 13 Commercial banks 122,000 141,895 149,094 147,703 148,455 150,434 151,271 154,050 155,661 14 Finance companies 56,057 61,609 70,626 73,312 72,129 73,810 74,327 74,286 75,038 15 Pools of securitized assets4 39,561 36,376 44,41 lr 41,568 42,800 40,545 41,021 44,543 42,822 16 Revolving 302,201 357,307 435,674 424,537 425,875' 431,710' 438,768' 441,858 447,583 17 Commercial banks 149,920 182,021 210,298 198,886 196,836 201,903 205,011 206,393 211,831 18 Nonfinancial business3 50,125 56,790 53,525 48,613 47,416 44,526 45,182 42,574 41,715 19 Pools of securitized assets4 80,242 96,130 147,934 153,390 157,901' 161,396' 164,509' 168,844 169,716 20 Other 280,185 313,225 342,152r 344,358' 345,451' 344,867' 341,840' 341,268 338,432 21 Commercial banks 127,763 139,007 148,361' 153,744' 155,638' 154,341' 149,036' 147,366 144,090 22 Finance companies 60,396 73,221 81,998 81,053 79,620 79,489 81,566 81,578 81,311 23 Nonfinancial business3 27,104 29,831 31,536 29,525 29,265 29,239 29,498 29,489 29,517 24 Pools of securitized assets4 11,267 15,305 22,053 22,721 23,728 24,064 23,768 24,803 25,075 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 3. Includes retailers and gasoline companies. extended to individuals that is scheduled to be repaid (or has the option of repayment) in two 4. Outstanding balances of pools upon which securities have been issued; these balances or more installments. Data in this table also appear in the Board's G.19 (421) monthly are no longer carried on the balance sheets of the loan originator. 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 CREDIT1 Percent per year except as noted 1996 IItteemm 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June July INTEREST RATES Commercial hanks2 1 48-month new car 8.09 8.12 9.57 n.a. 9.12 n.a. n.a. 8.93 n.a. 2 24-month personal 13.47 13.19 • 13.94 n.a. 13.63 n.a. n.a. 13.52 n.a. n.a. Credit card plan 3 All accounts n.a. 15.69 16.02 n.a. 15.82 n.a. n.a. 15.44 n.a. n.a. 4 Accounts assessed interest n.a. 15.77 15.79 n.a. 15.41 n.a. n.a. 15.41 n.a. n.a. Auto finance companies 5 New car 9.48 9.79 11.19 9.74 9.86 9.77 9.64 9.37 9.53 9.81 6 Used car 12.79 13.49 14.48 13.27 13.28 13.19 13.26 13.49 13.62 13.77 OTHER TERMS3 Maturity (months) 1 New car 54.5 54.0 54.1 51.8 52.3 51.8 51.5 50.8 50.4 50.5 8 Used car 48.8 50.2 52.2 52.2 52.1 52.0 51.8 51.7 51.6 51.7 Loan-to-value ratio 9 New car 91 92 92 92 91 91 91 91 91 91 10 Used car 98 99 99 99 98 98 99 99 100 100 Amount financed (dollars) 11 New car 14,332 15,375 16,210 16,698 16,627 16,520 16,605 16,686 16,854 16,926 12 Used car 9,875 10,709 11,590 12,059 11,990 11,934 12,024 12,233 12,249 12,242 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals that is scheduled to be repaid (or has the option of repayment) in two 3. At auto finance companies, 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

Flow of Funds A37 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1994 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q4 QL Q2 Q3 Q4 QL Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.... 481.7 543.0 628.5 620.4 722.3 652.7 846.0 869.3 582.5 591.3 869.8 689.4 By sector and instrument 2 Federal government 278.2 304.0 256.1 155.9 144.4 166.8 247.8 184.7 86.0 59.3 239.9 62.4 3 Treasury securities 292.0 303.8 248.3 155.7 142.9 172.5 249.0 183.1 85.6 54.1 242.2 60.2 4 Budget agency securities and mortgages -13.8 .2 7.8 .2 1.5 -5.7 -1.2 1.6 .4 5.1 -2.3 2.2 5 Nonfederal 203.5 239.0 372.3 464.5 577.8 485.9 598.2 684.6 496.5 532.1 630.0 627.0 By instrument 6 Commercial paper -18.4 8.6 10.0 21.4 18.1 30.7 12.3 39.1 13.9 7.2 42.2 15.4 7 Municipal securities 87.8 30.5 74.8 -29.3 -41.3 -53.5 -54.9 -2.2 -100.3 -7.6 -15.2 40.1 8 Corporate bonds 78.8 67.6 75.2 23.3 73.3 6.2 53.0 98.4 59.8 82.0 58.9 70.0 9 Bank loans n.e.c -40.9 -13.7 3.8 73.1 99.6 77.5 145.9 99.0 75.2 78.2 38.4 79.5 10 Other loans and advances -48.5 10.1 -10.2 55.4 58.3 68.9 79.2 55.2 36.1 62.5 35.5 34.4 11 Mortgages 158.4 130.9 157.2 194.3 228.2 215.7 226.0 240.0 254.9 192.1 340.4 306.4 12 Home mortgages 173.6 187.6 187.9 202.4 196.7 221.9 199.2 207.7 221.4 158.7 292.9 245.9 13 Multifamily residential -5.5 -10.4 -6.0 1.3 10.9 -4.2 2.8 14.2 13.7 12.8 14.4 17.7 14 Commercial -10.0 -47.8 -25.0 -11.1 19.0 -3.4 22.4 16.3 17.7 19.5 30.8 37.6 15 Farm .4 1.4 .5 1.8 1.6 1.4 1.6 1.7 2.2 1.1 2.4 5.1 16 Consumer credit -13.7 5.0 61.5 126.3 141.6 140.5 136.7 155.1 156.9 117.7 129.7 81.1 By borrowing sector 17 Household 183.8 198.4 254.6 368.7 380.6 399.1 366.1 401.2 414.9 340.2 435.9 339911..00 18 Nonfinancial business -61.9 19.5 55.5 139.3 242.9 155.0 286.3 292.3 185.1 207.9 206.6 199.1 19 Corporate -53.0 34.1 46.5 124.3 208.5 139.4 239.0 258.8 155.0 181.3 166.4 157.3 20 Nonfarm noncorporate -11.0 -16.0 7.0 12.1 32.8 16.4 46.6 30.5 26.5 27.6 40.1 34.8 21 Farm 2.1 1.3 2.0 2.8 1.6 -.8 .8 3.0 3.5 -1.0 .1 7.0 22 State and local government 81.6 21.1 62.3 -43.4 -45.7 -68.2 -54.2 -9.0 -103.5 -16.0 -12.5 36.8 23 Foreign net borrowing in United States 14.8 23.7 70.4 -15.3 69.5 45.5 61.8 43.1 95.5 77.4 43.8 34.9 24 Open market paper 6.4 5.2 -9.0 -27.3 13.6 5.9 37.9 -11.1 30.9 -3.4 -13.8 7.4 25 Bonds 15.0 16.8 82.9 12.2 48.3 39.1 13.9 51.2 55.2 72.7 47.9 11.4 26 Bank loans n.e.c 3.1 2.3 .7 1.4 8.5 -.5 8.1 5.6 8.2 11.9 8.7 15.2 27 Other loans and advances -9.8 -.6 -4.2 -1.6 -.8 1.1 1.9 -2.6 1.3 -3.9 1.1 .9 28 Total domestic plus foreign 496.5 566.7 698.9 605.1 791.7 698.2 907.7 912.4 678.0 668.7 913.6 724.4 Financial sectors 29 Total net borrowing by financial sectors 155.6 240.0 291.1 467.9 447.2 534.2 267.7 439.9 507.1 574.0 319.9 686.6 By instrument 30 U.S. government-related 145.7 155.8 164.2 288.6 205.1 316.1 86.7 196.5 227.7 309.6 143.8 302.0 31 Government-sponsored enterprise securities 9.2 40.3 80.6 176.9 106.9 249.0 62.9 127.2 101.5 136.1 37.4 132.9 32 Mortgage pool securities 136.6 115.6 83.6 116.5 98.2 67.1 23.8 69.3 126.2 173.5 106.5 169.1 33 Loans from U.S. government .0 .0 .0 -4.8 .0 .0 .0 .0 .0 .0 .0 .0 34 9.8 84.2 126.9 179.2 242.1 218.1 181.0 243.4 279.4 264.4 176.0 384.6 35 Open market paper -32.0 -.7 -6.2 41.6 42.6 86.5 37.6 33.9 43.7 55.1 17.8 105.7 36 Corporate bonds 69.9 82.7 120.1 117.5 185.2 84.9 167.6 182.3 217.7 173.4 143.3 201.0 37 Bank loans n.e.c 8.8 2.2 -13.0 -12.3 5.5 3.7 -5.0 20.7 7.9 -1.8 14.9 23.6 38 Other loans and advances -37.3 -.6 22.4 22.6 3.4 38.1 -24.5 1.3 4.9 32.0 -5.5 48.6 39 Mortgages .5 .6 3.6 9.8 5.3 4.9 5.2 5.2 5.2 5.6 5.5 5.8 By borrowing sector 40 Commercial banking -13.2 10.0 13.4 20.1 22.5 20.7 21.7 39.0 37.5 -8.2 -32.5 40.1 41 Savings institutions -44.7 -7.0 11.3 12.8 2.6 36.1 -18.9 -7.2 5.1 31.5 10.9 40.2 42 Credit unions .0 .0 .2 .2 -.1 .2 -.3 — .1 .1 .0 -.1 -.2 43 Life insurance companies .0 .0 .2 .3 -.1 1.3 .0 .1 -.1 -.4 2.5 .3 44 Government-sponsored enterprises 9.1 40.2 80.6 172.1 106.9 249.0 62.9 127.2 101.5 136.1 37.4 132.9 45 Federally related mortgage pools 136.6 115.6 83.6 116.5 98.2 67.1 23.8 69.3 126.2 173.5 106.5 169.1 46 Issuers of asset-backed securities (ABSs) 54.0 58.5 83.3 68.5 132.8 62.8 67.6 113.2 166.4 183.9 132.4 127.2 47 Finance companies 17.7 -1.6 .2 50.2 51.6 53.0 80.2 52.0 19.8 54.3 47.1 54.8 48 Mortgage companies -2.4 8.0 .0 -11.5 .4 1.1 -7.4 14.8 4.0 -10.0 10.0 16.0 49 Real estate investment trusts (REITs) 1.2 .3 3.4 13.7 5.4 6.3 5.2 5.2 5.2 6.0 5.9 6.5 50 Brokers and dealers 3.7 2.7 12.0 .5 -5.0 19.3 -29.5 -.1 2.1 7.7 -31.8 13.1 51 Funding corporations -6.5 13.2 2.9 24.2 32.0 17.2 62.5 26.4 39.4 -.4 31.6 86.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • November 1996 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1994 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999911 11999922 11999933 11999944 11999955 Q4 Ql Q2 Q3 Q4 Ql Q2 All sectors 55552222 TTTToooottttaaaallll nnnneeeetttt bbbboooorrrrrrrroooowwwwiiiinnnngggg,,,, aaaallllllll sssseeeeccccttttoooorrrrssss 652.1 806.7 990.0 1,073.0 1,238.9 1,232.4 1,175.4 1,352.3 1,185.1 1,242.7 1,233.5 1,411.0 55553333 OOOOppppeeeennnn mmmmaaaarrrrkkkkeeeetttt ppppaaaappppeeeerrrr -44.0 13.1 -5.1 35.7 74.3 123.1 87.8 61.9 88.5 58.9 46.2 128.6 55554444 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss 424.0 459.8 420.3 449.3 349.5 482.9 334.5 381.1 313.7 368.9 383.7 364.4 55555555 MMMMuuuunnnniiiicccciiiippppaaaallll sssseeeeccccuuuurrrriiiittttiiiieeeessss 87.8 30.5 74.8 -29.3 -41.3 -53.5 -54.9 -2.2 -100.3 -7.6 -15.2 40.1 55556666 CCCCoooorrrrppppoooorrrraaaatttteeee aaaannnndddd ffffoooorrrreeeeiiiiggggnnnn bbbboooonnnnddddssss 163.6 167.1 278.2 153.0 306.8 130.1 234.5 331.9 332.6 328.2 250.1 282.4 55557777 BBBBaaaannnnkkkk llllooooaaaannnnssss nnnn....eeee....cccc -29.1 -9.3 -8.5 62.2 113.5 80.7 149.0 125.3 91.3 88.3 61.9 118.3 55558888 OOOOtttthhhheeeerrrr llllooooaaaannnnssss aaaannnndddd aaaaddddvvvvaaaannnncccceeeessss -95.6 8.9 8.0 71.7 60.8 108.1 56.5 53.9 42.2 90.7 31.1 83.9 55559999 MMMMoooorrrrttttggggaaaaggggeeeessss 158.9 131.5 160.8 204.1 233.6 220.6 231.2 245.2 260.2 197.6 345.9 312.1 66660000 CCCCoooonnnnssssuuuummmmeeeerrrr ccccrrrreeeeddddiiiitttt -13.7 5.0 61.5 126.3 141.6 140.5 136.7 155.1 156.9 117.7 129.7 81.1 Funds raised through mutual funds and corporate equities 66661111 TTTToooottttaaaallll nnnneeeetttt iiiissssssssuuuueeeessss 209.4 296.6 445.0 156.2 162.6 -79.5 48.9 152.3 207.0 242.3 282.8 411.4 66662222 CCCCoooorrrrppppoooorrrraaaatttteeee eeeeqqqquuuuiiiittttiiiieeeessss 62.2 87.5 121.2 27.3 -11.3 -64.3 -35.2 -12.8 5.0 -2.3 -4.9 73.1 66663333 NNNNoooonnnnffffiiiinnnnaaaannnncccciiiiaaaallll ccccoooorrrrppppoooorrrraaaattttiiiioooonnnnssss 18.3 27.0 21.3 -44.9 -74.2 -118.0 -60.0 -71.3 -92.8 -72.8 -106.8 -16.8 66664444 FFFFiiiinnnnaaaannnncccciiiiaaaallll ccccoooorrrrppppoooorrrraaaattttiiiioooonnnnssss 13.3 28.1 36.6 24.1 12.2 16.3 8.4 17.7 9.6 13.1 12.1 21.1 66665555 FFFFoooorrrreeeeiiiiggggnnnn sssshhhhaaaarrrreeeessss ppppuuuurrrrcccchhhhaaaasssseeeedddd bbbbyyyy UUUU....SSSS.... rrrreeeessssiiiiddddeeeennnnttttssss 30.7 32.4 63.4 48.1 50.7 37.4 16.4 40.8 88.2 57.4 89.8 68.9 66666666 MMMMuuuuttttuuuuaaaallll ffffuuuunnnnddddssss 147.2 209.1 323.7 128.9 173.9 -15.2 84.1 165.0 202.0 244.5 287.6 338.2 1. Data in this table also appear in the Board's Z. 1 (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

Flow of Funds A39 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1994 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999911 11999922 11999933 11999944 11999955 Q4 Q1 Q2 Q3 Q4 Q1 Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 652.1 806.7 990.0 1,073.0 1,238.9 1,232.4 1,175.4 1,352.3 1,185.1 1,242.7 1,233.5 1,411.0 2 Domestic nonfederal nonfinancial sectors 105.2 88.7 82.5 251.4 -89.1 260.5 14.9 -153.0 -51.3 -166.9 -21.8 85.1 Households 29.0 82.5 69.1 295.7 43.5 375.8 161.4 -111.7 203.9 -79.7 81.4 90.3 4 Nonfinancial corporate business 30.7 27.8 9.1 49.6 -5.8 50.0 -42.6 39.5 -52.4 32.3 -5.0 14.1 5 Nonfarm noncorporate business -5.3 -.1 .6 .7 1.0 .9 .5 1.1 1.1 1.2 1.1 11..11 6 State and local governments 50.8 -21.5 3.7 -94.6 -127.7 -166.1 -104.4 -81.9 -204.0 -120.7 -99.2 --2200..44 7 Federal government 10.5 -11.9 -18.4 -24.2 -21.3 -24.3 -13.1 -24.2 -24.0 -24.0 -20.0 -13.8 8 Rest of the world 13.3 98.4 128.5 133.2 271.8 209.0 246.6 320.2 361.6 158.8 343.9 269.7 9 Financial sectors 523.1 631.5 797.3 712.5 1,077.5 787.2 927.0 1,209.3 898.9 1,274.9 931.3 1,070.0 10 Monetary authority 31.1 27.9 36.2 31.5 12.7 25.5 18.4 16.7 -4.1 19.7 16.9 9.4 11 Commercial banking 80.8 95.3 142.2 163.4 265.9 179.8 333.0 319.4 244.8 166.2 121.7 191.2 12 U.S. chartered banks 35.7 69.5 149.6 148.1 186.5 178.4 178.7 222.4 227.0 118.1 80.5 125.5 13 Foreign banking offices in United States 48.5 16.5 -9.8 11.2 75.4 -4.5 153.5 86.6 25.6 36.1 44.2 58.6 14 Bank holding companies -1.5 5.6 .0 .9 -.3 -2.4 -1.5 5.3 -9.6 4.6 -5.1 5.3 15 Banks in U.S. affiliated areas -1.9 3.7 2.4 3.3 4.2 8.3 2.4 5.2 1.8 7.4 2.1 1.7 16 Savings institutions -158.9 -79.0 -23.4 6.8 -7.5 5.6 17.6 -11.4 32.0 -68.4 -20.1 5.0 17 Credit unions 12.8 17.7 21.7 28.1 16.2 24.9 11.6 22.8 11.0 19.5 22.3 33.4 18 Bank personal trusts and estates 10.0 8.0 9.5 7.1 -18.8 1.4 -10.8 -20.6 -23.7 -20.2 -18.1 -12.3 19 Life insurance companies 86.5 78.5 100.9 66.3 99.2 76.7 135.2 135.5 72.9 53.3 48.7 117.2 20 Other insurance companies 30.0 6.7 27.7 24.9 21.5 30.4 20.8 20.9 21.9 22.3 23.6 23.7 21 Private pension funds 35.4 41.1 45.9 47.0 61.3 74.7 58.9 57.2 50.5 78.5 65.8 84.3 22 State and local government retirement funds 41.1 23.0 19.8 29.0 21.4 41.8 59.4 4.6 2.7 18.9 55.5 76.1 23 Money market mutual funds 32.7 4.7 20.4 30.0 86.5 52.8 56.4 134.4 30.0 125.1 175.0 18.4 24 Mutual funds 80.1 126.2 159.5 -7.1 52.5 -78.6 -13.4 23.4 58.0 141.9 67.5 82.1 25 Closed-end funds 12.8 18.2 11.0 -5.5 5.8 -10.0 3.5 6.4 8.4 5.0 -1.2 3.8 26 Government sponsored enterprises 15.1 68.8 90.2 119.1 88.9 171.4 21.9 93.0 50.0 190.5 39.4 134.6 27 Federally related mortgage pools 136.6 115.6 83.6 116.5 98.2 67.1 23.8 69.3 126.2 173.5 106.5 169.1 28 Asset-backed securities issuers (ABSs) 50.0 53.7 80.8 61.9 112.1 42.6 55.5 100.9 154.4 137.4 112.4 119.3 29 Finance companies -9.2 7.5 -9.0 68.2 64.2 80.7 85.1 67.2 50.8 53.7 40.9 38.9 30 Mortgage companies 11.2 .1 .0 -22.9 -3.4 2.1 -14.4 29.9 7.3 -36.4 51.0 -16.4 31 Real estate investment trusts (REITs) -.7 1.1 .6 4.7 1.8 .2 1.8 1.8 1.8 1.9 1.9 1.7 32 Brokers and dealers 17.5 -1.3 14.8 -44.2 90.1 -8.0 30.5 146.2 -1.8 185.6 -109.0 -75.9 33 Funding corporations 8.2 17.7 -34.9 -12.2 9.1 6.2 32.1 -8.3 5.7 7.0 130.6 66.4 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 652.1 806.7 990.0 1,073.0 1,238.9 1,232.4 1,175.4 1,352.3 1,185.1 1,242.7 1,233.5 1,411.0 Other financial sources 35 Official foreign exchange -5.9 -1.6 .8 -5.8 8.8 -8.6 17.8 10.3 9.0 --11..99 --22..11 ..00 36 Special drawing rights certificates .0 -2.0 .0 .0 2.2 .0 .0 .0 8.6 .0 .0 .0 37 Treasury currency .0 .2 .4 .7 .6 .7 .7 .7 .8 .0 .0 .0 38 Foreign deposits -26.5 -3.5 -18.5 54.0 33.5 106.4 34.6 110.8 -29.5 18.2 85.0 8.7 39 Net interbank transactions -3.4 49.4 50.5 89.7 10.1 108.5 -22.3 -4.5 -13.4 80.7 -90.3 -84.1 40 Checkable deposits and currency 86.3 113.5 117.3 -9.7 -12.8 -37.3 31.3 100.2 -113.1 -69.3 44.3 1.6 41 Small time and savings deposits 1.5 -57.2 -70.3 -40.0 96.5 -42.7 29.8 95.6 145.6 114.9 189.0 -10.2 42 Large time deposits -58.5 -73.2 -23.5 19.6 65.6 36.2 108.8 74.4 80.2 -.9 43.0 85.4 43 Money market fund shares 41.6 4.5 20.2 43.3 142.3 81.1 74.2 221.1 122.9 151.1 244.0 4.1 44 Security repurchase agreements -16.5 43.1 71.2 78.3 110.7 48.5 172.5 115.6 95.0 59.8 -23.7 70.4 45 Corporate equities 62.2 87.5 121.2 27.3 -11.3 -64.3 -35.2 -12.8 5.0 -2.3 -4.9 73.1 46 Mutual fund shares 147.2 209.1 323.7 128.9 173.9 -15.2 84.1 165.0 202.0 244.5 287.6 338.2 47 Trade payables 31.0 46.6 57.4 114.3 94.4 151.7 84.0 72.2 128.3 93.1 72.8 187.3 48 Security credit 51.4 4.6 61.4 -.1 26.7 32.7 -5.4 30.1 32.3 49.7 120.6 -48.3 49 Life insurance reserves 25.7 27.3 35.2 34.0 44.7 21.6 51.6 56.3 34.0 37.0 21.1 69.8 50 Pension fund reserves 198.2 238.6 247.3 248.0 241.9 294.0 268.1 286.7 213.9 199.0 243.6 208.1 51 Taxes payable -7.4 9.7 5.2 3.2 1.3 4.1 12.0 1.0 2.4 -10.2 5.5 7.1 52 Investment in bank personal trusts 16.1 -7.1 1.6 18.8 -47.7 11.9 -44.3 -45.6 -63.9 -37.1 -47.3 -20.2 53 Noncorporate proprietors' equity .5 16.7 3.4 23.5 42.9 18.5 30.6 42.3 54.9 43.6 40.6 30.0 54 Miscellaneous 278.2 280.3 358.9 260.8 500.1 363.1 316.0 484.8 396.9 802.6 542.0 280.7 55 Total financial sources 1,474.0 1,793.0 2,353.5 2,161.9 2,763.3 2,343.3 2,384.5 3,156.5 2,497.0 3,015.3 3,004.4 2,613.0 Liabilities not identified as assets ( —) 56 Treasury currency -.6 -.2 -.2 -.2 -.5 -.2 -.2 -.4 -.3 --11..00 -1.1 --..99 57 Foreign deposits -24.0 -2.8 -7.0 44.9 27.4 64.8 41.6 101.8 -55.7 21.9 61.1 44.5 58 Net interbank liabilities 26.2 -4.9 4.2 -2.7 -3.1 3.5 -.4 -.9 12.3 -23.6 10.9 -27.0 59 Security repurchase agreements -9.5 3.6 34.3 31.5 2.5 84.4 66.2 -53.0 23.5 -26.8 -47.8 33.8 60 Taxes payable -2.2 11.9 11.1 8.6 8.7 -.2 -7.5 31.0 9.3 2.2 -23.3 25.1 61 Miscellaneous 9.8 -.2 -133.8 -112.1 -13.2 -45.7 —264.2 51.6 -37.9 197.6 -195.6 -11.6 Floats not included in assets (—) 62 Federal government checkable deposits -13.1 .7 -1.5 -4.8 -6.0 -17.1 4.6 -18.6 3.8 -13.8 7.9 -11.3 63 Other checkable deposits 4.5 1.6 -1.3 -2.8 -3.8 -2.3 -3.6 -3.8 -3.2 -4.7 -3.8 -4.2 64 Trade credit 36.1 11.3 -3.6 -2.8 -23.7 -59.6 48.0 33.8 -55.6 -121.2 43.3 -21.2 65 Total identified to sectors as assets l,446.8r l,772.1r 2,451.3r 2,202.3r 2,775.1r 2,315.7 2,499.9 3,014.9 2,600.8 2,984.7 3,152.7 2,585.9 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.6 and E7. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • November 1996 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1994 1995 1996 Trraannssadcctuioonn craattpeganorrvy norr sspepcttonrr 11999922 1 QQC Q4 Q1 Q2 Q3 Q4 Q1 Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 11,894.5 12,537.8 13,164.4 13,886.7 13,164.4 13,339.1 13,546.6 13,701.3 13,886.7 14,077.8 14,223.8 By sector and instrument 2 Federal government 3,080.3 3,336.5 3,492.3 3,636.7 3,492.3 3,557.9 3,583.5 3,603.4 3,636.7 3,717.2 3,693.8 i Treasury securities 3,061.6 3,309.9 3,465.6 3,608.5 3,465.6 3,531.5 3,556.7 3,576.5 3,608.5 3,689.6 3,665.5 4 Budget agency securities and mortgages 18.8 26.6 26.7 28.2 26.7 26.4 26.8 26.9 28.2 27.6 28.2 5 Nonfederal 8,814.2 9,201.3 9,672.1 10,249.9 9,672.1 9,781.2 9,963.1 10,097.9 10,249.9 10,360.6 10,530.0 By instrument 6 Commercial paper 107.1 117.8 139.2 157.4 139.2 149.8 162.9 163.3 157.4 174.2 181.7 y Municipal securities and loans 1,302.8 1,377.5 1,348.2 1,307.0 1,348.2 1,335.4 1,331.7 1,309.9 1,307.0 1,304.7 1,311.3 8 Corporate bonds 1,154.5 1,229.7 1,253.0 1,326.3 1,253.0 1,266.3 1,290.9 1,305.8 1,326.3 1,341.0 1,358.5 y Bank loans n.e.c 672.2 676.0 749.0 848.5 749.0 782.8 810.8 824.4 848.5 856.0 879.2 10 Other loans and advances 686.5 676.3 738.0 796.3 738.0 762.0 775.8 781.2 796.3 809.4 817.7 ii Mortgages 4,088.7 4,260.0 4,454.4 4,682.6 4,454.4 4,494.0 4,560.2 4,635.2 4,682.6 4,749.9 4,832.7 12 Home mortgages 3,037.4 3,227.6 3,430.0 3,626.8 3,430.0 3,462.9 3,521.1 3,587.7 3,626.8 3,682.2 3,749.9 13 Multifamily residential 272.5 267.8 269.1 280.0 269.1 269.8 273.4 276.8 280.0 283.6 288.0 14 Commercial 698.1 683.4 672.3 691.2 672.3 677.8 681.9 686.4 691.2 698.9 708.3 15 Farm 80.7 81.2 83.0 84.6 83.0 83.4 83.8 84.4 84.6 85.2 86.5 lb Consumer credit 802.4 863.9 990.2 1,131.9 990.2 990.9 1,030.8 1,078.2 1,131.9 1,125.4 1,148.8 By borrowing sector 1177 Households 4,021.4 4,278.4 4,646.7 5,027.3 4,646.7 4,688.0 4,795.3 4,917.2 5,027.3 5,080.1 5,186.6 18 Nonfinancial business 3,696.8 3,764.8 3,910.6 4,153.5 3,910.6 3,991.0 4,071.0 4,106.6 4,153.5 4,213.0 4,270.1 iy Corporate 2,437.6 2,496.5 2,627.4 2,836.0 2,627.4 2,698.6 2,766.9 2,794.3 2,836.0 2,888.0 2,931.2 20 Nonfarm noncorporate 1,122.9 1,129.9 1,142.0 1,174.8 1,142.0 1,153.5 1,161.3 1,167.4 1,174.8 1,184.7 1,193.6 21 Farm 136.3 138.3 141.2 142.7 141.2 138.9 142.8 144.8 142.7 140.3 145.3 11 State and local government 1,095.9 1,158.2 1,114.8 1,069.1 1,114.8 1,102.2 1,096.8 1,074.1 1,069.1 1,067.5 1,073.3 23 Foreign credit market debt held in United States 315.2 385.6 370.4 439.9 370.4 385.7 396.8 419.8 439.9 450.8 459.7 24 Commercial paper 77.7 68.7 41.4 55.0 41.4 50.9 48.1 55.8 55.0 51.5 53.4 25 Bonds 147.2 230.1 242.3 290.6 242.3 245.8 258.6 272.4 290.6 302.5 305.4 2b Bank loans n.e.c 23.9 24.6 26.1 34.6 26.1 28.2 29.6 31.6 34.6 36.8 40.5 21 Other loans and advances 66.4 62.1 60.6 59.7 60.6 60.8 60.5 60.0 59.7 60.0 60.4 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 12,209.7 12,923.4 13,534.8 14,326.6 13,534.8 13,724.7 13,943.4 14,121.1 14,326.6 14,528.6 14,683.5 Financial sectors 29 Total credit market debt owed by financial sectors 3,025.0 3,321.5 3,794.6 4,244.4 3,794.6 3,861.5 3,971.9 4,096.3 4,244.4 4,322.6 4,494.3 By instrument 30 Federal government-related 1,720.0 1,884.1 2,172.7 2,377.9 2,172.7 2,196.2 2,247.1 2,300.1 2,377.9 2,416.6 2,493.5 31 Government-sponsored enterprises securities 443.1 523.7 700.6 807.5 700.6 716.3 748.1 773.5 807.5 816.9 850.1 32 Mortgage pool securities 1,272.0 1,355.6 1,472.1 1,570.3 1,472.1 1,479.9 1,499.0 1,526.6 1,570.3 1,599.7 1,643.4 ii Loans from U.S. government 4.8 4.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 1,305.1 1,437.4 1,621.9 1,866.5 1,621.9 1,665.3 1,724.8 1,796.2 1,866.5 1,906.0 2,000.8 35 Open market paper 394.3 393.5 442.8 488.0 442.8 454.1 462.8 473.6 488.0 491.9 518.5 Jt) Corporate bonds 738.4 858.5 973.5 1,158.7 973.5 1,012.3 1,056.4 1,112.7 1,158.7 1,191.2 1,240.0 3/ Bank loans n.e.c 80.5 67.6 55.3 60.8 55.3 53.4 58.4 60.3 60.8 63.9 69.7 38 Other loans and advances 86.6 108.9 131.6 135.0 131.6 125.4 125.7 127.0 135.0 133.6 145.8 39 Mortgages 5.4 8.9 18.7 24.0 18.7 20.0 21.3 22.6 24.0 25.4 26.9 By borrowing sector 40 Commercial banks 80.0 84.6 94.5 102.6 94.5 95.0 99.9 102.0 102.6 100.5 103.6 41 Bank holding companies 114.6 123.4 133.6 148.0 133.6 137.7 142.9 150.0 148.0 141.4 148.4 42 Savings institutions 88.4 99.6 112.4 115.0 112.4 107.7 105.9 107.2 115.0 117.8 127.8 43 Credit unions .0 .2 .5 .4 .5 .4 .3 .4 .4 .4 .3 44 Life insurance companies .0 .2 .6 .5 .6 .6 .6 .6 .5 1.1 1.2 45 Government-sponsored enterprises 447.9 528.5 700.6 807.5 700.6 716.3 748.1 773.5 807.5 816.9 850.1 46 Federally related mortgage pools 1,272.0 1,355.6 1,472.1 1,570.3 1,472.1 1,479.9 1,499.0 1,526.6 1,570.3 1,599.7 1,643.4 47 Issuers of asset-backed securities (ABSs) 404.3 487.6 556.1 688.9 556.1 570.0 596.8 640.2 688.9 718.6 749.0 48 Brokers and dealers 21.7 33.7 34.3 29.3 34.3 26.9 26.8 27.4 29.3 21.4 24.6 49 Frnance companies 390.4 390.5 440.7 492.3 440.7 456.7 467.2 471.9 492.3 499.8 511.0 50 Mortgage companies 30.2 30.2 18.7 19.1 18.7 16.9 20.6 21.6 19.1 21.6 25.6 51 Real estate investment trusts (REITs) 13.9 17.4 31.1 36.5 31.1 32.4 33.7 35.0 36.5 38.0 39.6 52 Funding corporations 161.6 169.9 199.3 233.9 199.3 221.1 230.0 239.9 233.9 245.6 269.5 All sectors 53 Total credit market debt, domestic and foreign.... 15,234.7 16,244.8 17,329.4 18,570.9 17,329.4 17,586.2 17,915.3 18,217.4 18,570.9 18,851.2 19,177.8 54 Open market paper 579.0 580.0 623.5 700.4 623.5 654.7 673.8 692.7 700.4 717.6 753.6 55 U.S. government securities 4,795.5 5,215.8 5,665.0 6,014.6 5,665.0 5,754.1 5,830.6 5,903.5 6,014.6 6,133.8 6,187.2 56 Municipal securities 1,302.8 1,377.5 1,348.2 1,307.0 1,348.2 1,335.4 1,331.7 1,309.9 1,307.0 1,304.7 1,311.3 5/ Corporate and foreign bonds 2,040.1 2,318.3 2,468.8 2,775.6 2,468.8 2,524.4 2,605.9 2,690.9 2,775.6 2,834.8 2,903.9 58 Bank loans n.e.c 776.6 768.2 830.4 943.9 830.4 864.4 898.8 916.3 943.9 956.7 989.4 59 Other loans and advances 844.2 852.1 930.1 991.0 930.1 948.2 962.1 968.2 991.0 1,003.0 1,023.9 60 Mortgages 4,094.1 4,269.0 4,473.1 4,706.7 4,473.1 4,514.0 4,581.6 4,657.8 4,706.7 4,775.4 4,859.6 61 Consumer credit 802.4 863.9 990.2 1,131.9 990.2 990.9 1,030.8 1,078.2 1,131.9 1,125.4 1,148.8 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES' Billions of dollars except as noted, end of period 1994 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999922 11999933 11999944 11999955 Q4 QL Q2 Q3 Q4 QL Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 15,234.7 16,244.8 17,329.4 18,570.9 17,329.4 17,586.2 17,915.3 18,217.4 18,570.9 18,851.2 19,177.8 2 Domestic nonfederal nonfinancial sectors 2,672.4 2,747.8 3,029.6 2,905.3 3,029.6 2,995.5 2,946.8 2,953.3 2,905.3 2,874.3 2,867.1 3 Households 1,619.3 1,676.7 2,002.7 2,011.0 2,002.7 2,025.2 1,981.5 2,052.7 2,011.0 2,030.8 2,017.4 4 Nonfinancial corporate business 257.8 271.5 321.1 315.3 321.1 292.6 303.9 291.0 315.3 291.4 298.1 5 Nonfarm noncorporate business 38.1 38.8 39.5 40.4 39.5 39.6 39.9 40.2 40.4 40.7 41.0 6 State and local governments 757.2 760.8 666.3 538.5 666.3 638.1 621.6 569.4 538.5 511.4 510.6 7 Federal government 236.0 231.7 207.6 186.2 207.6 204.2 198.2 192.2 186.2 181.2 177.7 X Rest of the world 1,023.0 1,147.0 1,254.9 1,561.1 1,254.9 1,323.3 1,400.9 1,492.4 1,561.1 1,653.6 1,718.6 9 Financial sectors 11,303.2 12,118.3 12,837.3 13,918.3 12,837.3 13,063.2 13,369.3 13,579.5 13,918.3 14,142.2 14,414.4 10 Monetary authority 300.4 336.7 368.2 380.8 368.2 367.1 375.7 370.6 380.8 379.6 386.3 11 Commercial banking 2,948.6 3,090.8 3,254.3 3,520.1 3,254.3 3,327.8 3,410.1 3,473.2 3,520.1 3,541.6 3,591.1 12 U.S. chartered banks 2,571.9 2,721.5 2,869.6 3,056.1 2,869.6 2,906.5 2,963.7 3,023.7 3,056.1 3,068.8 3,101.3 13 Foreign banking offices in United States 335.8 326.0 337.1 412.6 337.1 373.6 396.0 401.1 412.6 422.2 437.4 14 Bank holding companies 17.5 17.5 18.4 18.0 18.4 18.0 19.3 16.9 18.0 16.8 18.1 15 Banks in U.S. affiliated areas 23.4 25.8 29.2 33.4 29.2 29.8 31.1 31.5 33.4 33.9 34.3 16 Savings institutions 937.4 914.0 920.9 913.3 920.9 925.3 922.4 930.4 913.3 908.3 909.5 17 Credit unions 197.1 218.7 246.8 263.0 246.8 248.1 255.0 258.5 263.0 267.1 276.6 18 Bank personal trusts and estates 231.5 240.9 248.0 229.2 248.0 245.3 240.2 234.2 229.2 224.7 221.6 19 Life insurance companies 1,309.1 1,420.6 1,487.0 1,586.2 1,487.0 1,523.1 1,557.1 1,575.5 1,586.2 1,600.5 1,629.7 20 Other insurance companies 389.4 422.7 446.4 468.7 446.4 451.9 457.3 463.0 468.7 474.5 480.2 21 Private pension funds 571.7 617.6 664.6 725.9 664.6 679.3 693.6 706.2 725.9 742.3 763.4 22 State and local government retirement funds 417.5 437.3 466.3 487.7 466.3 480.7 482.1 481.8 487.7 501.1 520.6 23 Money market mutual funds 408.6 429.0 459.0 545.5 459.0 480.6 508.0 505.7 545.5 595.6 594.7 24 Mutual funds 566.4 725.9 718.8 771.3 718.8 719.3 724.8 739.2 771.3 792.4 812.5 25 Closed-end funds 67.7 78.6 73.1 78.9 73.1 74.0 75.6 77.7 78.9 78.6 79.6 26 Government-sponsored enterprises 457.8 548.0 667.1 756.0 667.1 671.9 695.9 708.4 756.0 765.2 799.5 27 Federally related mortgage pools 1,272.0 1,355.6 1,472.1 1,570.3 1,472.1 1,479.9 1,499.0 1,526.6 1,570.3 1,599.7 1,643.4 28 Asset-backed securities issuers (ABSs) 378.0 458.8 520.7 632.7 520.7 531.5 555.2 595.7 632.7 657.5 685.9 29 Finance companies 496.4 482.8 551.0 615.2 551.0 568.5 586.9 594.7 615.2 621.7 632.6 30 Mortgage companies 60.5 60.4 37.5 34.1 37.5 33.9 41.4 43.2 34.1 46.8 42.7 31 Real estate investment trusts (REITs) 8.1 8.6 13.3 15.1 13.3 13.8 14.2 14.7 15.1 15.6 16.1 32 Brokers and dealers 122.7 137.5 93.3 183.4 93.3 101.0 137.5 137.0 183.4 156.2 137.2 33 Funding corporations 162.5 133.6 129.2 140.9 129.2 140.3 137.4 143.1 140.9 173.4 191.2 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 15,234.7 16,244.8 17,329.4 18,570.9 17,329.4 17,586.2 17,915.3 18,217.4 18,570.9 18,851.2 19,177.8 Other liabilities 35 Official foreign exchange 51.8 53.4 53.2 63.7 53.2 64.1 67.1 65.1 63.7 62.1 61.4 36 Special drawing rights certificates 8.0 8.0 8.0 10.2 8.0 8.0 8.0 10.2 10.2 10.2 10.2 37 Treasury currency 16.5 17.0 17.6 18.2 17.6 17.8 18.0 18.2 18.2 18.2 18.2 38 Foreign deposits 267.7 271.8 324.6 361.4 324.6 333.3 361.0 353.6 361.4 382.7 384.9 39 Net interbank liabilities 138.5 189.3 280.0 290.8 280.0 272.8 265.9 267.3 290.8 266.1 241.8 40 Checkable deposits and currency 1,134.4 1,251.7 1,242.0 1,229.3 1,242.0 1,193.7 1,246.2 1,200.3 1,229.3 1,183.6 1,211.9 41 Small time and savings deposits 2,293.5 2,223.2 2,183.3 2,279.7 2,183.3 2,200.2 2,222.6 2,255.8 2,279.7 2,336.4 2,332.9 42 Large time deposits 415.2 391.7 411.2 476.9 411.2 441.2 456.3 477.5 476.9 490.6 508.6 43 Money market fund shares 539.5 559.6 602.9 745.3 602.9 634.0 678.5 702.7 745.3 816.9 809.5 44 Security repurchase agreements 399.9 471.1 549.4 660.1 549.4 603.4 629.3 655.5 660.1 665.0 679.2 45 Mutual fund shares 992.5 1,375.4 1,477.3 1,852.8 1,477.3 1,553.3 1,661.0 1,782.0 1,852.8 1,994.3 2,112.0 46 Security credit 217.7 279.0 279.0 305.6 279.0 269.5 277.9 286.2 305.6 326.9 316.0 47 Life insurance reserves 433.0 468.2 502.2 546.9 502.2 515.1 529.1 537.7 546.9 552.2 569.6 48 Pension fund reserves 4,055.1 4,471.6 4,691.4 5,426.6 4,691.4 4,885.7 5,084.4 5,298.1 5,426.6 5,559.2 5,714.6 49 Trade payables 995.1 1,053.3 1,167.6 1,262.0 1,167.6 1,160.2 1,180.5 1,213.9 1,262.0 1,252.0 1,299.8 50 Taxes payable 79.7 84.9 88.0 89.3 88.0 94.3 89.2 91.9 89.3 94.2 90.4 51 Investment in bank personal trusts 660.6 691.3 699.4 767.4 699.4 719.7 739.7 758.6 767.4 781.6 791.0 52 Miscellaneous 4,785.7 5,174.1 5,435.9 5,848.2 5,435.9 5,514.9 5,590.1 5,695.3 5,848.2 5,973.2 5,998.3 53 Total liabilities 32,719.0 35,279.4 37,342.7 40,805.2 37,342.7 38,067.5 39,020.2 39,887.2 40,805.2 41,616.7 42,327.7 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 19.6 20.1 21.1 22.1 21.1 22.7 22.9 22.1 22.1 22.1 22.2 55 Corporate equities 5,462.9 6,278.5 6,293.4 8,345.4 6,293.4 6,835.8 7,393.0 8,013.8 8,345.4 8,820.5 9,181.0 56 Household equity in noncorporate business 2,458.3 2,476.3 2,565.1 2,642.6 2,565.1 2,572.4 2,599.3 2,607.1 2,642.6 2,657.0 2,665.0 Liabilities not identified as assets (—) 57 Treasury currency -4.9 -5.1 -5.4 -5.8 -5.4 -5.4 -5.5 -5.6 -5.8 -6.1 -6.3 58 Foreign deposits 217.6 232.6 278.7 309.2 278.7 289.1 314.5 300.6 309.2 324.4 335.6 59 Net interbank transactions -9.3 -4.7 -6.5 -9.0 -6.5 -2.7 -2.9 .1 -9.0 -2.6 -8.0 60 Security repurchase agreements 43.0 77.3 108.8 111.3 108.8 130.4 109.8 129.9 111.3 103.3 102.7 61 Taxes payable 25.2 26.8 25.0 33.7 25.0 10.0 25.6 28.7 33.7 13.4 27.8 62 Miscellaneous -514.0 -660.9 -733.1 -783.3 -733.1 -749.7 -699.7 -660.9 -783.3 -758.2 -773.2 Floats not included in assets ( —) 63 Federal government checkable deposits 6.8 5.6 3.4 3.1 3.4 4.2 2.0 .6 3.1 .0 -3.4 64 Other checkable deposits 42.0 40.7 38.0 34.2 38.0 33.3 35.7 27.3 34.2 29.6 31.8 65 Trade credit -251.1 -247.6 -251.3 -275.0 -251.3 -294.3 -304.5 -330.7 -275.0 -326.1 -347.5 66 Total identified to sectors as assets 41,104.4 44,589.6 46,764.6 52,397.0 46,764.6 48,083.5 49,560.6 51,040.2 52,397.0 53,738.6 54,836.5 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. 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

A42 Domestic Nonfinancial Statistics • November 1996 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1987=100, except as noted 1995 1996 MMeeaassuurree 11999933 11999944 11999955 Dec. Jan. Feb. Mar. Apr. May' June July' Aug. 1 Industrial production' 111.5 118.1 121.9 122.8 122.5 124.2 123.6 124.5 125.4 126.2r 126.3 126.9 Market groupings 2 Products, total ilO.O 115.6 118.3 119.2 118.6 120.7 120.0 120.8 121.3 122.1' 122.4 122.4 3 Final, total 112.7 118.3 121.4 122.1 121.9 124.5 123.4 124.8 125.1 125.8' 126.6 126.4 4 Consumer goods 109.5 113.7 115.1 115.7 114.6 116.6 115.3 115.9 116.3 116.6' 117.3 116.5 5 Equipment 117.5 125.3 131.4 132.3 133.7 137.3 136.5 139.2 139.2 140.8 141.7 142.6 6 Intermediate 101.8 107.3 109.0 110.1 108.5 109.3 109.6 108.6 110.1 110.9' 109.9 110.2 7 Materials 113.8 122.0 127.4 128.4 128.5 129.4 129.1 130.3 131.6 132.5 132.2 133.8 Industry groupings 8 Manufacturing 112.3 119.7 123.9 124.8 124.5 126.2 125.2 126.5 127.4 128.4' 128.8 129.1 9 Capacity utilization, manufacturing (percent)2. . 80.6 83.3 83.0 81.9 81.4 82.3 81.3 81.9 82.1 82.5' 82.4 82.3 10 Construction contracts3 105.2' 114.2 118.1' 117.0 120.0 114.0' 126.0 129.0' 127.0 123.0' 122.0 124.0 11 Nonagricultural employment, total4 108.6 112.0 115.0 115.9 115.8 116.3 116.5 116.7 117.0 117.3 117.5 117.7 12 Goods-producing, total 94.6 96.9 98.1 97.9 97.7 98.3 98.1 98.1 98.3 98.4 98.4 98.5 13 Manufacturing, total 95.1 96.4 97.2 96.7 96.4 96.5 96.2 96.2 96.3 96.3 96.2 96.3 14 Manufacturing, production workers 95.3 97.5 98.7 98.1 97.7 97.8 97.4 97.5 97.5 97.5 97.4 97.5 15 Service-producing 113.1 116.8 120.3 121.6 121.6 122.1 122.3 122.6 123.0 123.3 123.6 123.9 16 Personal income, total 141.3 148.4 157.7 161.6 161.7 162.9 163.5 164.3 165.2 166.6 166.8 17 Wages and salary disbursements 136.0 142.6 150.9 154.6 154.4 156.0 156.7 157.5 158.3 160.3 160.1 n.a. 18 Manufacturing 119.3 124.9 130.4 132.0 130.8 132.5 131.8 134.4 135.1 135.9' 136.4 n.a. 19 Disposable personal income5 142.4 149.3 158.2 162.3 162.2 163.2 163.7 162.9 165.2 166.5 166.7 n.a. 20 Retail sales5 134.7 144.8 152.2 155.3 155.3 158.6 159.3 159.1 160.4 159.4' 159.6 159.9 Prices6 21 Consumer (1982-84=100) 144.5 148.2 152.4 153.5 154.4 154.9 155.7 156.3 156.6 156.7 157.0 157.3 22 Producer finished goods (1982=100) 124.7 125.5 127.9 129.1 129.4 129.4 130.1 130.6' 131.0 131.6 131.5 131.9 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. For 5. Based on data from U.S. Department of Commerce, Survey of Current Business. the ordering address, see the inside front cover. The latest historical revision of the industrial 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price production index and the capacity utilization rates was released in November 1995. See "A indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics, Revision to Industrial Production and Capacity Utilization, 1991-95," Federal Reserve Monthly Labor Review. Bulletin, vol. 82 (January 1996), pp. 16-25. For a detailed description of the industrial NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series production index, see "Industrial Production: 1989 Developments and Historical Revision," mentioned in notes 3 and 6, can also be found in the Survey of Current Business. Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. Figures for industrial production for the latest month are preliminary, and many figures for 2. Ratio of index of production to index of capacity. Based on data from the Federal the three months preceding the latest month have been revised. See "Recent Developments in Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources. Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 3. Index of dollar value of total construction contracts, including residential, nonresiden- 411-35. See also "Industrial Production Capacity and Capacity Utilization since 1987," tial, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605. 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 1996 CCaatteeggoorryy 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June' July' Aug. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 129,200 131,056 132,304 132,903 133,018 113333,,665555 113333,,336611 113333,,991100 113333,,666699 113344,,118811 113333,,888855 Employment 2 Nonagricultural industries3 117,144 119,651 121,460 121,698 122,143 122,664 122,726 122,971 123,228 123,382 123,635 i Agriculture 3,115 3,409 3,440 3,529 3,519 3,487 3,368 3,491 33,,338822 33,,550022 33,,442211 Unemployment 4 Number 8,940 7,996 7,404 7,677 7,355 7,504 7,266 7,448 7,060 7,297 6,830 5 Rate (percent of civilian labor force) 6.9 6.1 5.6 5.8 5.5 5.6 5.4 5.6 5.3 5.4 5.1 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 110,730 114,172 117,203 118,070 118,579 118,737 118,928 119,335 119,554 119,782 120,032 7 Manufacturing 18,075 18,321 18,468 18,309 18,332 18,282 18,283 18,302 18,297 18,270 18,295 8 Mining 610 601 580 569 573 574 573 576 575 570 568 9 Contract construction 4,668 4,986 5,158 5,234 5,349 5,340 5,353 5,384 5,403 5,426 5,432 10 Transportation and public utilities 5,829 5,993 6,165 6,254 6,270 6,289 6,294 6,311 6,327 6,333 6,348 11 Trade 25,755 26,670 27,585 27,780 27,869 27,891 27,972 28,066 28,151 28,249 28,277 12 Finance 6,757 6,896 6,830 6,894 6,919 6,932 6,942 6,964 6,967 6,987 7,007 13 Service 30,197 31,579 33,107 33,694 33,902 34,035 34,114 34,274 34,383 34,457 34,538 14 Government 18,841 19,128 19,310 19,336 19,365 19,394 19,397 19,458 19,451 19,490 19,567 1. Beginning January 1994, reflects redesign of current population survey and population 4. Includes all full- and part-time employees who worked during, or received pay for, the controls from the 1990 census. pay period that includes the twelfth day of the month; excludes proprietors, self-employed 2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly persons, household and unpaid family workers, and members of the armed forces. Data are figures are based on sample data collected during the calendar week that contains the twelfth adjusted to the March 1992 benchmark, and only seasonally adjusted data are available at this day; annual data are averages of monthly figures. By definition, seasonality does not exist in time. 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

Selected Measures A43 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1995 1996 1995 1996 1995 1996 SSeerriieess 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 122.3 122.5 123.4 125.4 146.3 147.7 149.1 150.6 83.6 82.9 82.8 83.3 2 Manufacturing 124.1 124.6 125.3 127.4 150.2 151.9 153.5 155.1 82.6 82.0 81.6 82.2 3 Primary processing3 117.1 117.1 116.7 118.5 135.2 136.1 136.9 137.8 86.6 86.1 85.2 86.1 4 Advanced processing4 127.5 128.1 129.4 131.7 157.5 159.5 161.5 163.5 80.9 80.3 80.1 80.5 5 Durable goods 133.0 134.2 136.0 139.6 161.7 164.2 166.7 169.4 82.3 81.7 81.6 82.4 6 Lumber and products 104.6 105.8 104.6 108.9 119.8 120.9 121.7 122.4 87.3 87.5 85.9 88.9 7 Primary metals 118.2 118.8 118.9 119.7 128.8 129.5 130.3 131.4 91.8 91.8 91.2 91.2 8 Iron and steel 121.3 121.3 122.6 123.0 132.9 133.5 134.4 135.7 91.3 90.9 91.2 90.6 9 Nonferrous 113.9 115.3 113.8 115.3 123.3 124.0 124.8 125.5 92.4 93.0 91.2 91.8 10 Industrial machinery and equipment 178.9 186.8 195.3 201.8 206.1 212.0 218.1 224.5 86.8 88.1 89.5 89.9 11 Electrical machinery 178.4 182.9 186.3 189.2 206.3 213.9 221.8 229.9 86.5 85.5 84.0 82.3 12 Motor vehicles and parts 140.7 140.5 132.6 145.9 176.8 179.2 181.3 182.9 79.6 78.4 73.2 79.8 13 Aerospace and miscellaneous transportation equipment 86.9 79.0 84.0 85.8 130.1 129.3 128.6 128.1 66.8 61.1 65.3 6677..00 14 Nondurable goods 114.3 113.9 113.5 114.1 137.7 138.4 139.0 139.6 83.0 82.3 81.7 81.8 15 Textile mill products 110.9 109.4 106.4 109.2 131.6 132.8 133.7 134.2 84.3 82.4 79.6 81.4 16 Paper and products 119.5 118.1 114.6 119.3 132.8 133.9 134.9 135.8 90.0 88.2 85.0 87.8 17 Chemicals and products 124.6 126.4 126.9 127.3 155.6 156.5 157.5 158.5 80.1 80.7 80.6 80.3 18 Plastics materials 118.3 123.1 126.9 132.2 135.4 137.1 138.6 139.9 87.3 89.7 91.6 94.6 19 Petroleum products 109.2 107.7 109.7 109.9 116.4 116.6 116.8 117.1 93.8 92.4 93.9 93.9 20 Mining 100.2 98.2 98.7 100.9 111.9 111.9 111.9 111.8 89.5 87.8 88.2 90.2 21 Utilities 124.7 124.1 126.7 127.0 135.2 135.6 136.0 136.5 92.3 91.5 93.2 93.0 22 Electric 125.0 123.7 126.4 127.0 132.5 133.0 133.4 133.9 94.3 93.1 94.8 94.8 1973 1975 Previous cycle5 Latest cycle6 1995 1996 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 83.9 82.6 83.0 83.3 83.5 83.3 83.5 2 Manufacturing 88.9 70.8 87.3 70.0 85.2 76.6 82.7 81.3 81.9 82.1 82.5 82.4 82.3 3 Primary processing3 92.2 68.9 89.7 66.8 89.0 77.9 86.2 85.3 85.5 86.1 86.6 86.4 86.5 4 Advanced processing4 87.5 72.0 86.3 71.4 83.5 76.1 81.2 79.6 80.4 80.5 80.8 80.8 80.6 5 Durable goods 88.8 68.5 86.9 65.0 84.0 73.7 82.4 80.9 82.1 82.1 82.9 82.7 82.5 6 Lumber and products 90.1 62.2 87.6 60.9 93.3 76.1 86.6 88.2 88.7 88.0 90.1 88.0 86.9 7 Primary metals 100.6 66.2 102.4 46.8 92.8 74.2 89.6 90.3 91.0 90.3 92.2 91.2 90.9 8 Iron and steel 105.8 66.6 110.4 38.3 95.7 72.0 88.6 89.1 90.8 89.2 91.9 92.3 90.5 9 Nonferrous 92.9 61.3 90.5 62.2 88.7 75.2 90.8 91.8 91.1 91.6 92.7 89.7 91.3 10 Industrial machinery and equipment 96.4 74.5 92.1 64.9 84.0 71.8 87.1 89.9 89.5 89.7 90.5 89.7 9900..00 II Electrical machinery 87.8 63.8 89.4 71.1 84.9 77.0 86.7 83.7 82.5 82.1 82.3 81.4 80.6 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 85.1 56.6 80.4 66.7 79.1 79.1 81.1 83.7 81.7 13 Aerospace and miscellaneous transportation equipment 77.0 66.6 81.1 66.9 88.4 78.8 67.0 66.7 67.0 66.9 67.0 68.2 6699..33 14 Nondurable goods 87.9 71.8 87.0 76.9 86.7 80.3 83.0 81.6 81.5 82.0 81.8 82.0 82.0 15 Textile mill products 92.0 60.4 91.7 73.8 92.1 78.8 85.4 81.4 80.7 81.0 82.3 82.3 81.3 16 Paper and products 96.9 69.0 94.2 82.0 94.8 86.7 89.3 85.4 87.7 88.0 87.7 89.1 88.9 17 Chemicals and products 87.9 69.9 85.1 70.1 85.9 79.0 80.0 80.1 79.7 80.6 80.6 81.2 80.6 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 85.4 92.6 93.4 94.5 95.8 19 Petroleum products 96.7 81.1 89.5 68.2 88.5 84.6 93.2 94.0 93.8 93.8 94.1 93.1 94.8 2.0 Mining 94.4 88.4 96.6 80.6 86.5 86.1 89.3 90.3 89.7 89.8 91.1 90.2 92.4 71 Utilities 95.6 82.5 88.3 76.2 92.6 83.1 95.3 94.0 92.7 94.1 92.3 90.5 91.8 22 Electric 99.0 82.7 88.3 78.7 94.8 86.7 98.1 95.2 94.0 96.1 94.5 92.4 94.0 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. For 3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic the ordering address, see the inside front cover. The latest historical revision of the industrial materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass; production index and the capacity utilization rates was released in November 1995. See "A primary metals; and fabricated metals. Revision to Industrial Production and Capacity Utilization. 1991-95," Federal Reserve 4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing Bulletin, vol. 82 (January 1996), pp. 16—25. For a detailed description of the industrial and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather production index, see "Industrial Production: 1989 Developments and Historical Revision," and products; machinery; transportation equipment; instruments; and miscellaneous manufac- Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. tures. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted 5. Monthly highs, 1978-80; monthly lows, 1982. 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

A44 Domestic Nonfinancial Statistics • November 1996 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1995 1996 UUrroouupp pprroo-- 1995 aavvgg.. tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May' June' July Aug.P Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 121.9 122.7 122.8 122.2 122.6 122.8 122.5 124.2 123.6 124.5 125.4 126.2 126.3 126.9 2 Products 60.6 118.3 119.2 119.4 118.3 118.8 119.2 118.6 120.7 120.0 120.8 121.3 122.1 122.4 122.4 i Final products 46.3 121.4 122.4 122.6 121.3 121.9 122.1 121.9 124.5 123.4 124.8 125.1 125.8 126.6 126.4 4 Consumer goods, total 28.6 115.1 115.9 116.0 114.9 115.9 115.7 114.6 116.6 115.3 115.9 116.3 116.6 117.3 116.5 5 Durable consumer goods 5.6 124.2 124.0 125.8 123.4 124.9 126.3 120.3 125.1 119.3 125.5 126.2 129.9 131.1 127.4 6 Automotive products 2.5 130.7 130.7 132.9 128.5 130.5 132.8 125.9 133.1 120.3 133.5 134.1 137.4 142.5 136.6 V Autos and trucks 1.6 131.4 132.0 133.1 128.6 129.8 132.1 124.1 133.5 111.1 135.9 135.4 138.9 149.6 141.1 8 Autos, consumer .9 103.1 100.6 102.6 100.2 100.2 99.5 92.8 99.7 77.0 104.1 106.2 110.4 116.1 111.1 y Trucks, consumer .7 181.7 188.2 187.7 179.1 182.8 190.6 180.4 194.4 173.1 192.7 187.3 189.2 209.3 194.3 10 Auto parts and allied goods .9 127.8 126.6 130.8 126.7 130.2 132.7 128.1 130.7 137.2 127.2 129.9 132.9 126.7 125.9 n Other 3.0 118.6 118.1 119.6 118.9 119.9 120.5 115.5 118.1 118.5 118.5 119.3 123.4 121.2 119.3 12 Appliances, televisions, and air conditioners .7 135.5 135.8 139.4 140.1 145.3 141.9 132.2 137.5 138.3 139.7 138.9 151.4 148.2 142.5 13 Carpeting and furniture .8 105.8 104.4 106.9 105.6 104.1 107.4 101.1 103.4 105.7 104.4 106.0 109.4 105.4 104.9 14 Miscellaneous home goods 1.5 118.2 118.0 117.8 116.9 117.6 118.3 116.2 117.7 116.9 117.1 118.2 118.7 118.0 117.1 15 Nondurable consumer goods 23.0 112.9 113.9 113.7 112.9 113.8 113.2 113.3 114.5 114.4 113.6 114.0 113.4 113.9 113.9 16 Foods and tobacco 10.3 111.3 111.8 111.6 111.1 110.9 110.6 110.6 112.0 112.3 112.2 112.0 111.6 111.9 111.8 17 Clothing 2.4 94.8 93.9 93.4 92.9 91.5 89.7 88.2 90.3 88.9 88.8 89.2 88.3 87.9 87.6 18 Chemical products 4.5 131.3 132.6 134.0 135.7 135.0 136.5 138.1 138.1 136.7 133.8 135.2 134.4 137.4 135.9 19 Paper products 2.9 106.6 106.7 107.3 106.6 108.4 106.3 104.9 106.0 105.8 106.1 107.2 106.3 107.8 108.5 20 Energy 2.9 116.5 122.3 119.0 113.1 121.1 119.5 121.0 122.6 123.9 121.8 121.8 121.7 119.3 121.2 21 Fuels .9 108.8 108.4 111.4 107.3 108.2 108.6 108.6 111.8 112.2 111.5 111.7 111.6 110.7 112.9 22 Residential utilities 2.1 119.6 128.2 122.2 115.4 126.6 124.1 126.1 127.2 128.8 126.2 126.0 125.9 122.9 124.7 23 Equipment 17.7 131.4 132.9 133.1 131.5 131.4 132.3 133.7 137.3 136.5 139.2 139.2 140.8 141.7 142.6 24 Business equipment 13.7 155.7 157.5 158.2 156.5 156.9 158.4 160.5 164.8 162.7 166.3 166.0 168.5 170.0 170.9 25 Information processing and related 5.7 198.1 201.0 203.0 206.5 208.1 209.4 213.3 220.5 221.6 224.9 226.2 231.3 232.6 236.6 26 Computer and office equipment 1.4 373.5 379.6 390.0 402.9 417.8 431.7 442.9 463.3 476.0 491.1 505.0 519.0 537.0 553.1 27 Industrial 4.0 127.5 129.1 128.7 128.6 129.1 129.5 129.6 131.3 130.3 129.9 129.4 128.7 128.3 128.5 28 Transit 2.6 136.3 138.0 137.9 122.3 119.6 124.5 128.1 133.2 121.2 136.1 133.4 136.9 143.8 141.1 29 Autos and trucks 1.2 140.1 141.3 143.3 135.7 134.2 135.3 129.1 136.0 113.6 140.0 138.2 141.9 151.8 143.5 30 Other 1.4 123.2 122.2 123.3 120.9 121.4 121.7 122.1 123.5 122.5 122.1 121.1 123.2 122.4 121.8 31 Defense and space equipment 3.3 65.9 66.1 65.2 64.4 62.9 62.0 61.6 63.1 64.2 64.0 64.3 63.7 64.1 65.0 32 Oil and gas well drilling .6 87.1 89.5 88.3 83.5 83.1 83.8 85.1 89.7 96.3 100.6 104.3 102.3 99.1 99.9 33 Manufactured homes .2 152.7 155.9 158.0 158.9 161.8 164.4 158.1 157.8 168.2 170.7 170.4 172.4 164.8 34 Intermediate products, total 14.3 109.0 109.4 109.5 109.2 109.3 110.1 108.5 109.3 109.6 108.6 110.1 110.9 109.9 110.2 35 Construction supplies 5.3 108.2 107.0 108.4 108.3 108.7 110.5 107.2 109.3 111.5 109.2 111.0 113.8 112.2 111.9 36 Business supplies 9.0 109.6 111.0 110.3 109.9 109.9 110.0 109.6 109.5 108.6 108.4 109.6 109.2 108.6 109.3 37 Materials 39.4 127.4 128.1 128.1 128.1 128.4 128.4 128.5 129.4 129.1 130.3 131.6 132.5 132.2 133.8 38 Durable goods materials 20.8 141.5 142.3 144.1 143.9 145.3 144.8 145.8 147.3 145.5 147.3 148.8 150.7 150.7 152.3 39 Durable consumer parts 4.0 138.5 138.4 139.8 138.6 140.1 139.3 140.6 141.1 132.5 142.1 143.5 148.1 147.5 151.5 40 Equipment parts 7.5 163.0 167.1 169.1 169.4 171.0 170.8 171.7 176.3 176.8 177.2 179.0 181.3 182.1 184.2 41 Other 9.2 126.2 124.9 126.8 126.5 127.9 127.2 128.2 127.8 127.4 126.8 128.1 128.5 128.2 128.3 42 Basic metal materials 3.1 125.7 123.1 127.0 124.3 128.1 126.6 125.7 123.7 124.4 123.7 123.9 125.7 124.6 124.2 43 Nondurable goods materials 8.9 119.8 118.8 117.8 118.7 116.6 117.4 115.7 116.1 116.3 118.8 120.0 120.0 120.5 121.0 44 Textile materials 1.1 109.2 109.2 106.2 107.3 104.8 103.3 100.3 101.8 103.0 104.9 106.2 106.1 106.2 105.6 45 Paper materials 1.8 120.5 120.4 117.0 121.4 114.3 115.2 113.4 113.4 113.7 118.9 118.7 115.2 120.9 120.4 46 Chemical materials 3.9 124.4 123.1 123.3 122.9 122.7 121.9 121.8 121.3 121.6 123.6 125.8 126.8 125.7 126.3 4/ Other 2.1 116.5 114.6 115.1 114.6 114.1 118.9 115.2 117.1 116.4 117.8 118.2 119.6 118.5 120.3 4488 Energy materials 9.7 106.6 108.5 105.8 105.5 105.7 106.0 105.9 106.1 108.2 107.0 108.1 107.6 106.2 108.9 4499 Primary energy 6.3 101.9 101.4 101.2 101.7 100.8 101.0 100.6 101.3 103.9 103.1 102.7 102.7 101.5 104.5 50 Converted fuel materials 3.3 116.0 122.8 115.0 113.1 115.4 116.2 116.6 115.5 116.7 114.9 118.9 117.6 115.6 117.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.2 121.5 122.3 122.4 121.9 122.3 122.5 122.4 123.8 123.9 124.1 125.0 125.8 125.5 126.4 52 Total excluding motor vehicles and parts 95.2 120.9 121.7 121.8 121.3 121.7 121.9 121.9 123.3 123.7 123.5 124.4 125.1 124.9 125.7 53 Total excluding computer and office equipment 98.2 118.2 118.9 118.9 118.1 118.4 118.5 118.0 119.5 118.7 119.5 120.2 120.9 120.8 121.2 54 Consumer goods excluding autos and trucks . 27.0 114.0 114.8 114.9 114.0 115.0 114.7 114.0 115.5 115.6 114.6 115.1 115.2 115.1 114.9 55 Consumer goods excluding energy 25.7 114.9 115.1 115.7 115.1 115.3 115.3 113.9 115.9 114.3 115.2 115.7 116.1 117.0 116.0 56 Business equipment excluding autos and trucks 12.5 157.0 158.9 159.5 158.4 159.0 160.5 163.5 167.5 167.5 168.7 168.6 171.1 171.6 173.5 57 Business equipment excluding computer and office equipment 12.2 133.0 134.4 134.3 131.6 130.8 131.3 132.6 135.5 132.3 134.8 133.5 135.0 135.1 134.9 58 Materials excluding energy 29.7 134.9 135.1 136.1 136.2 136.6 136.4 136.6 137.8 136.6 138.6 140.0 141.3 141.5 142.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1992 Group c S o I d C e p p r o o r - - 1 a 9 v 9 g 5 . tion Aug. Sept. Apr. Mayr Juner July Aug.P Index (1987 = 100) MAJOR INDUSTRIES 59 Total index 100.0 121.9 122.7 122.8 122.2 122.6 122.8 122.5 124.2 123.6 124.5 125.4 126.2 126.3 126.9 60 Manufacturing 85.4 123.9 124.2 124.9 124.4 124.5 124.8 124.5 126.2 125.2 126.5 127.4 128.4 128.8 129.1 61 Primary processing 26.6 117.6 116.6 117.8 117.0 117.1 117.3 116.7 116.3 117.1 117.5 118.5 119.6 119.5 119.8 62 Advanced processing 58.9 126.8 127.8 128.2 127.9 128.0 128.4 128.2 131.0 129.0 130.8 131.5 132.6 133.2 133.5 63 Durable goods 45.0 132.5 133.2 134.4 133.5 134.3 134.8 134.9 137.5 135.6 138.3 139.1 141.2 141.6 142.0 64 Lumber and products " ' 24 2.0 104.5 103.7 106.2 105.7 104.8 106.9 103.1 103.3 107.5 108.4 107.7 110.5 108.1 107.0 65 Furniture and fixtures 25 1.4 111.6 110.9 112.0 110.9 109.8 109.3 109.3 110.5 107.7 108.9 112.1 111.9 109.6 110.0 66 Stone, clay, and glass products 32 2.1 104.1 103.0 103.8 104.5 104.9 104.3 105.5 104.1 102.9 103.6 105.0 105.7 107.0 106.6 67 Primary metals 33 3.1 119.2 115.4 121.0 115.7 120.8 120.0 121.5 117.1 118.0 119.2 118.6 121.5 120.5 120.3 68 Iron and steel 331,2 1.7 122.4 117.7 127.0 115.1 126.1 122.7 128.1 119.5 120.2 122.9 121.0 125.1 126.1 124.0 69 Raw steel 331PT .1 114.7 114.2 118.6 111.3 116.4 118.0 113.9 112.5 114.9 112.9 113.2 115.7 112.9 112.6 70 Nonferrous 333-6,9 1.4 114.8 111.9 113.2 115.8 113.8 116.2 113.0 113.6 114.8 114.2 115.1 116.6 113.1 115.3 71 Fabricated metal products. . . 34 5.0 113.9 114.3 115.1 114.0 114.5 115.0 115.6 117.0 116.1 115.5 116.7 117.2 117.0 117.7 72 Industrial machinery and equipment 35 8.0 177.8 179.5 181.3 183.8 186.5 190.1 191.9 196.1 197.8 199.0 201.2 205.1 205.4 208.1 73 Computer and office equipment 357 1.8 373.5 379.6 390.0 402.9 417.8 431.7 442.9 463.3 476.0 491.1 505.0 519.0 537.0 553.1 74 Electrical machinery 36 7.2 174.9 178.7 180.8 182.4 183.6 182.8 182.4 188.7 187.9 187.3 188.8 191.5 191.7 192.1 75 Transportation equipment. . . 37 9.5 113.3 114.1 114.1 109.3 108.6 109.7 108.3 112.1 103.1 114.6 114.6 116.6 120.0 119.0 76 Motor vehicles and parts . 371 4.8 141.9 142.1 143.3 139.7 140.7 141.2 135.5 141.1 121.3 144.3 144.7 148.7 154.1 150.8 77 Autos and light trucks . 371PT 2.5 131.3 131.6 132.8 128.4 129.6 131.5 123.5 132.8 109.9 135.5 135.3 138.9 149.4 141.1 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.7 85.8 87.2 85.9 80.0 77.7 79.4 82.2 84.2 85.7 86.0 85.7 85.8 87.2 88.4 79 Instruments 38 5.4 110.7 111.4 111.3 111.4 111.5 109.7 111.0 113.4 112.9 112.8 112.4 113.7 112.0 113.4 80 Miscellaneous 39 1.3 122.7 122.4 122.9 122.2 123.3 123.5 122.1 124.0 124.0 122.6 123.0 124.4 124.0 124.3 81 Nondurable goods 40.5 114.3 114.3 114.4 114.3 113.7 113.8 113.1 113.8 113.6 113.5 114.4 114.4 114.8 114.9 82 Foods "20 9.4 115.3 115.5 115.5 115.4 114.8 114.8 114.8 116.0 115.6 115.4 115.6 115.0 115.8 115.7 83 Tobacco products 21 1.6 90.2 91.3 90.2 88.2 88.9 88.4 87.1 90.9 92.6 94.6 91.9 93.0 90.8 92.4 84 Textile mill products 22 1.8 112.6 112.4 110.5 111.1 108.9 108.3 104.1 106.2 109.0 108.2 108.8 110.7 110.7 109.5 85 Apparel products 23 2.2 95.7 94.5 94.5 93.3 92.4 91.5 89.2 90.9 89.7 90.4 90.8 90.9 89.6 89.1 86 Paper and products 26 3.6 119.8 118.6 118.5 119.7 116.2 118.2 114.9 113.5 115.5 118.9 119.5 119.4 121.6 121.5 87 Printing and publishing 27 6.8 99.4 100.5 99.8 98.9 99.3 98.8 97.9 98.7 96.7 96.3 97.7 96.7 96.4 97.2 88 Chemicals and products .... 28 9.9 125.0 124.4 125.3 126.7 126.0 126.5 127.1 127.1 126.5 126.0 127.7 128.1 129.2 128.6 89 Petroleum products 29 1.4 108.3 108.5 110.0 106.9 107.4 108.9 108.9 110.2 109.9 109.7 109.8 110.3 109.2 111.2 90 Rubber and plastic products . 30 3.5 139.4 138.7 139.8 139.7 140.3 139.3 139.0 139.7 140.5 137.6 140.7 141.0 141.2 143.2 91 Leather and products 31 .3 81.3 80.8 80.5 79.7 78.2 76.8 75.6 77.1 76.7 76.2 75.6 76.2 75.1 75.5 92 Mining 6.9 99.9 100.0 100.0 98.2 98.3 98.1 97.1 98.0 101.1 100.4 100.5 101.9 100.9 103.3 93 Metal "lO .5 169.3 172.1 170.8 178.3 175.9 172.8 159.5 157.1 166.1 158.3 161.6 162.2 167.5 164.9 94 Coal 12 1.0 112.9 109.7 116.2 112.3 109.5 108.5 103.3 108.0 114.8 109.5 111.9 113.2 108.5 122.4 95 Oil and gas extraction 13 4.8 91.9 92.4 91.2 89.2 90.1 90.1 90.8 90.2 92.6 93.3 93.2 94.2 93.9 94.5 96 Stone and earth minerals 14 .6 112.3 111.6 113.1 112.4 110.9 112.4 108.9 117.2 117.4 115.6 112.7 117.9 113.8 115.7 97 Utilities 7.7 122.0 128.8 122.7 121.6 125.4 125.1 125.6 126.6 128.0 126.4 128.4 126.2 123.9 125.8 98 Electric 491.493PT 6.1 122.1 130.0 122.7 123.7 123.6 123.9 125.5 126.6 127.1 125.7 128.7 126.7 124.1 126.4 99 Gas 492.493PT 1.6 121.7 124.3 122.4 113.6 132.5 129.9 125.6 126.3 131.5 128.9 127.5 123.8 123.1 123.1 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.6 122.8 123.1 123.8 123.4 123.6 123.9 123.9 125.4 125.4 125.5 126.3 127.2 127.3 127.8 101 Manufacturing excluding office and computing machines . .. 83.7 119.5 119.8 120.3 119.6 119.6 119.7 119.3 120.7 119.5 120.7 121.3 122.2 122.3 122.5 Gross value (billions of 1992 dollars, annual rates) MAJOR MARKETS 102 Products, total 2,002.9 2,245.6 2,257.8 2,268.1 2,240.3 2,255.8 2,265.7 2,248.9 2,293.1 2,269.5 2,300.3 2,307.8 2,324.1 2,332.9 2,329.9 103 Final 1,552.2 1,748.7 1,760.5 1,768.2 1,741.9 1,756.8 1,761.9 1,753.0 1,794.2 1,766.8 1,801.5 1,804.4 1,815.5 1,829.5 1,825.1 104 Consumer goods 1,033.4 1,130.5 1,135.7 1,141.1 1,125.1 1,139.3 1,139.0 1,124.7 1,148.4 1,129.5 1,144.9 1,147.2 1,150.3 1,156.5 1,149.7 105 Equipment 518.8 618.3 624.8 627.1 616.7 617.5 622.9 628.4 645.8 637.3 656.6 657.1 665.2 673.0 675.4 106 Intermediate 450.7 496.9 497.3 499.9 498.4 499.0 503.8 495.9 498.8 502.7 498.8 503.4 508.6 503.4 504.9 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. For Bulletin, vol. 82 (January 1996), pp. 16-25. For a detailed description of the industrial the ordering address, see the inside front cover. The latest historical revision of the industrial production index, see "Industrial Production: 1989 Developments and Historical Revision," production index and the capacity utilization rates was released in November 1995. See "A Federal Reserve Bulletin, vol. 76, (April 1990), pp. 187-204. Revision to Industrial Production and Capacity Utilization, 1991-95," Federal Reserve 2. Standard industrial classification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • November 1996 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1995 1996 IItteemm 11999933 11999944 11999955 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 1,199 1.372 1,332 1,393 1,450 1,487 1,378 1,417 1,423 1,459 1,452 1,415 1,457 2 One-family 987 1,068 997 1,050 1,073 1,123 1,056 1,087 1,097 1,115 1,098 1,085 1,073 3 Two-family or more 213 303 335 343 377 364 322 330 326 344 354 330 384 4 Started 1,288 1.457 1,354 1,351 1,458 1,425 1,453 1,514 1,439 1,511 1,478 1,490 1,460 5 One-family 1,126 1.198 1,076 1,109 1,129 1,150 1,146 1,183 1,163 1,209 1,144 1,209 1,143 6 7 Un T d w er o c - o fa n m str i u ly ct i o o r n m at o e r n e d of period1 6 1 8 6 0 2 2 7 5 6 9 2 2 7 7 7 8 6 2 7 4 8 2 1 3 7 2 9 9 0 2 8 7 0 5 0 3 8 0 0 7 3 3 8 3 0 1 0 2 8 7 1 6 6 3 8 0 2 2 6 3 8 3 2 4 6 2 8 8 3 1 2 3 8 1 2 7 9 8 One-family 543 558 547 560 562 569 569 565 581 591 590 598 598 9 Two-family or more 137 204 229 221 228 231 234 235 235 235 236 234 231 10 Completed 1,193 1,347 1,313 1,320 1,360 1,225 1,403 1,328 1,391 1,350 1,408 1,413 1,429 11 One-family 1,040 1,160 1,066 1,039 1,081 1,003 1,113 1,052 1,112 1,073 11,,112200 1,122 1,117 12 Two-family or more 153 187 247 281 279 222 290 276 279 277 228888 291 312 13 Mobile homes shipped 254 304 340 354 355 352 352 341 364 378 369 372 372 Merchant builder activity in one-family units 14 Number sold 666 670 665 673 679 683 743 784 713 740 739 726 783 15 Number for sale at end of period1 293 337 372 360 368 372 370 355 368 369 365 363 365 Price of units sold (thousands of dollars)2 16 Median 126.1 130.4 133.4 135.2 137.0 138.6 131.9 139.4 137.0 140.0 136.0 140.0 143.0 17 Average 147.6 153.7 157.6 156.2 160.7 165.6 155.3 163.7 162.1 170.0 162.1 165.3 169.8 EXISTING UNITS (one-family) 18 Number sold 3,800 3,946 3,801 4,070 4,000 3,870 3,720 3,940 4,200 4,200 4,280 4,160 4,150 Price of units sold (thousands of dollars)2 19 Median 106.5 109.6 112.2 113.2 114.3 113.9 114.8 114.0 115.7 116.5 117.6 122.9 121.5 20 Average 133.1 136.4 138.4 138.7 139.5 138.7 141.2 138.7 140.1 141.9 144.4 150.2 149.6 Value of new construction (millions of dollars) CONSTRUCTION 21 Total put in place 482,737 527,063 547,079 549,952 549,745 555,701 558,952 544,577 556,983 564,985 558,712 562,556 554,722 22 Private 362,587 400,007 410,197 410,550 411,015 417,191 418,896 411,248 419,726 423,568 417,396 421,955 415,413 23 Residential 210,455 238,873 236,598 237,952 239,938 243,104 242,474 238,558 245,881 247,469 247,290 246,735 243,992 24 Nonresidential 152,132 161,134 173,599 172,598 171,077 174,087 176,422 172,690 173,845 176,099 170,106 175,220 171,421 25 Industrial buildings 26,482 28,947 32,301 31,422 32,032 31,996 32,495 30,792 30,593 30,316 27,283 28,671 27,819 26 Commercial buildings 53,375 59,728 67,528 67,259 65,555 66,447 66,475 66,461 65,503 67,485 65,472 69,008 66,013 27 Other buildings 26,219 26,961 26,923 27,899 27,418 28,197 28,103 27,470 27,884 27,426 27,652 28,444 27,968 28 Public utilities and other 46,056 45,498 46,847 46,018 46,072 47,447 49,349 47,967 49,865 50,872 49,699 49,097 49,621 29 Public 120,151 127,056 136,884 139,402 138,729 138,510 140,056 133,329 137,257 141,417 141.317 140,600 139,309 30 Military 2,454 2,319 3,005 2,295 3,217 3,211 3,554 3,982 3,126 3,192 3,026 3,155 3,056 31 Highway 34,342 37,673 38,161 40,125 38,344 40,402 39,444 40,956 39,527 39,763 38,071 38,821 39,055 32 Conservation and development 5,908 6,370 6,389 5,222 5,888 6,014 5,352 5,455 5,811 5,884 5,681 5,893 5,530 33 Other 77,447 80,694 89,329 91,760 91,280 88,883 91,706 82,936 88,793 92,578 94,539 92,731 91,668 1. Not at annual rates. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are 2. Not seasonally adjusted. private, domestic shipments as reported by the Manufactured Housing Institute and season- 3. Recent data on value of new construction may not be strictly comparable with data for ally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are previous periods because of changes by the Bureau of the Census in its estimating techniques. published by the National Association of Realtors. All back and current figures are available For a description of these changes, see Construction Reports (C-30-76-5), issued by the from the originating agency. Permit authorizations are those reported to the Census Bureau Census Bureau in July 1976. from 19,000 jurisdictions beginning in 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data except as noted Change from 12 Change from 3 months earlier Change from 1 month earlier months earlier (annual rate) IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1995 1996 1996 AAAuuuggg... 11999955 11999966 111999999666''' AAuugg.. AAuugg.. Sept. Dec. Mar. June Apr.' May' June July Aug. CONSUMER PRICES2 (1982-84=100) 1 All items 2.6 2.9 1.6 2.4 4.0 3.1 .4 .3 .1 .3 .1 157.3 7 2.5 3.6 2.7 1.9 3.2 4.6 .3 .1 .7 .5 .4 153.7 3 Energy items -1.0 3.9 -10.5 1.9 15.8 8.4 3.2 1.1 -2.2 -.4 -.6 111.6 4 All items less food and energy 2.9 2.6 2.8 2.2 3.5 2.2 .1 .2 .2 .3 .1 165.8 Commodities 1.5 1.0 2.0 1.7 2.6 -.3 -.1 .0 .0 .0 -.1 140.3 6 Services 3.6 3.3 3.0 2.5 3.4 3.9 .3 .3 .3 .3 .2 180.4 PRODUCER PRICES (1982=100) 7 Finished goods 1.3 3.0 1.6 4.4 2.5 1.9 .2 .1 .2 .0 .3 131.9 8 Consumer foods 1.7 5.1 8.8 4.4 .6 4.9 -.5 .1 1.6 .2 1.0 135.4 9 Consumer energy -2.5 6.4 -10.2 10.8 17.8 .0 2.7 -.5 -2.1 -.9 .7 84.5 10 Other consumer goods 2.1 1.6 2.3 3.4 -.3 2.5 .0 .3 .3 -.1 .0 144.1 11 Capital equipment 1.7 1.0 1.8 2.9 .0 -.3 .0 .1 -.1 .3 -.1 138.0 Intermediate materials 12 Excluding foods and feeds 5.7 -.7 -.6 -.6 -1.0 .0 .2 .3 -.6 -.4 .2 125.7 13 Excluding energy 6.9 -1.8 1.5 -2.9 -3.5 .0 -.1 .2 -.1 -.3 .1 133.6 Crude materials 14 Foods 2.9 23.5 34.8 20.8 -4.1 58.1 4.3 6.0 1.4 2.7 -.3 129.4 15 Energy -13.2 23.5 -21.0 33.9 52.8 -15.0 8.3 -3.9 -7.7 3.9' .7 81.0 16 Other 10.2 -12.4 -17.6 -18.4 -10.6 -7.9 -1.1 .5 -1.4 -1.6 .1 152.5 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • November 1996 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1995 1996 AAccccoouunntt 11999933 11999944 11999955 Q2 Q3 Q4 Ql Q2r GROSS DOMESTIC PRODUCT 1 Total 6,553.0 6,935.7 7,253.8 7,204.9 7,309.8 7350.6 7,426.8 7,547.6 By source 2 Personal consumption expenditures 4,454.1 4,700.9 4,924.9 4,910.5 4,957.9 4,990.5 5,060.5 5,140.0 3 Durable goods 530.7 580.9 606.4 604.0 615.8 612.8 625.2 638.1 4 Nondurable goods 1,368.9 1,429.7 1,485.9 1,486.7 1,491.2 1,494.2 1,522.1 1,545.9 5 Services 2,554.6 2,690.3 2,832.6 2,819.8 2,850.9 2,883.5 2,913.2 2,956.0 6 Gross private domestic investment 871.1 1,014.4 1,065.3 1,050.3 1,074.8 1,064.0 1,068.9 1,097.0 / Fixed investment 850.5 954.9 1,028.2 1,016.3 1,036.6 1,046.2 1,070.7 1,088.5 8 Nonresidential 598.8 667.2 738.5 734.4 746.3 749.7 769.0 774.5 9 Structures 171.8 180.2 199.7 197.6 202.5 204.0 208.4 208.8 10 Producers' durable equipment 427.0 487.0 538.8 536.8 543.8 545.7 560.6 565.7 11 Residential structures 251.7 287.7 289.8 281.9 290.3 296.5 301.7 314.0 12 Change in business inventories 20.6 59.5 37.0 34.0 38.2 17.8 -1.7 8.5 13 Nonfarm 26.8 48.0 39.6 36.1 41.5 19.9 2.7 11.9 14 Net exports of goods and services -62.7 -94.4 -94.7 -115.3 -87.6 -67.2 -86.3 -99.7 15 Exports 657.8 719.1 807.4 797.3 819.0 837.0 839.5 848.8 16 Imports 720.5 813.5 902.0 912.6 906.6 904.2 925.8 948.6 17 Government consumption expenditures and gross investment 1,290.4 1,314.7 1,358.3 1,359.4 1,364.6 1,363.4 1,383.7 1,410.3 18 Federal 522.6 516.4 516.6 522.0 516.8 507.7 518.6 530.8 19 State and local 767.8 798.4 841.7 837.3 847.7 855.7 865.1 879.5 By major type of product 2200 Final sales, total 6,532.4 6,876.2 7,216.7 7,170.9 7,271.5 7,332.8 7,428.6 7,539.1 21 Goods 2,401.4 2,534.4 2,662.2 2,646.2 2,688.8 2,698.0 2,749.3 2,784.2 22 Durable 1,014.3 1,086.2 1,147.3 1,138.6 1,167.2 1,166.4 1,192.1 1,219.3 23 Nondurable 1,387.2 1,448.3 1,515.0 1,507.7 1,521.6 1,531.7 1,557.1 1,564.9 24 Services 3,584.0 3,746.5 3,926.9 3,908.9 3,950.2 3,992.4 4,027.9 4,085.6 2b Structures 547.0 595.3 627.6 615.7 632.6 642.3 651.4 669.4 26 Change in business inventories 20.6 59.5 37.0 34.0 38.2 17.8 -1.7 8.5 27 Durable goods 15.7 31.9 34.9 28.5 29.2 27.3 12.3 10.8 28 Nondurable goods 4.9 27.7 2.2 5.4 9.1 -9.4 -14.0 -2.2 MEMO 29 Total GDP in chained 1992 dollars 6,386.4 6,608.7 6,742.9 6,713.5 6,776.4 6,780.7 6,814.3 6,894.5 NATIONAL INCOME 30 Total 5,195.3 5,501.6 5,813.5 5,755.4 5,861.4 5,927.4 6,015.3 6,116.4 31 Compensation of employees 3,809.5 4,009.8 4,222.7 4,191.6 4,247.7 4,301.1 4,344.3 4,421.0 32 Wages and salaries 3,095.3 3,257.3 3,433.2 3,406.0 3,454.0 3,501.1 3,540.2 3,606.6 33 Government and government enterprises 584.2 602.5 621.7 619.6 624.1 626.9 634.0 639.0 34 Other 2,511.1 2,654.8 2,811.5 2,786.4 2,829.9 2,874.2 22,,990066..11 2,967.6 35 Supplement to wages and salaries 714.2 752.4 789.5 785.6 793.7 800.1 880044..11 814.4 Jb Employer contributions for social insurance 333.3 350.2 365.5 363.6 367.8 369.8 375.0 380.4 3/ Other labor income 380.9 402.2 424.0 422.0 425.9 430.2 429.1 434.0 38 Proprietors' income' 420.0 450.9 478.3 474.7 479.6 486.7 499.5 516.1 39 Business and professional' 388.1 415.9 449.3 447.1 451.5 454.9 461.1 470.0 40 Farm' 32.0 35.0 29.0 27.6 28.1 31.8 38.4 46.1 41 Rental income of persons2 102.5 116.6 122.2 121.6 120.9 125.8 126.9 123.1 42 Corporate profits' 464.4 529.5 586.6 562.3 612.5 611.8 645.1 653.8 43 Profits before tax3 464.3 531.2 598.9 589.6 607.2 604.2 642.2 644.0 44 Inventory valuation adjustment -6.6 -13.3 -28.1 -42.3 -9.3 -8.8 -17.4 -13.0 45 Capital consumption adjustment 6.7 11.6 15.9 15.0 14.6 16.5 20.4 22.7 46 Net interest 398.9 394.9 403.6 405.2 400.7 401.9 399.5 402.5 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1995 1996 AAccccoouunntt 11999933 11999944 11999955 Q2 Q3 Q4 Ql Q2r PERSONAL INCOME AND SAVING 1 Total personal income 5,480.1 5,753.1 6,115.1 6,074.4 6,146.9 6,234.5 6,308.5 6,412.1 2 Wage and salary disbursements 3,090.7 3,241.8 3,430.6 3,403.1 3,451.2 3,500.2 3,538.2 3,606.6 3 Commodity-producing industries 781.3 824.9 863.5 858.7 866.7 873.9 878.7 900.5 4 Manufacturing 593.1 621.1 648.4 645.3 650.1 654.7 654.8 672.0 5 Distributive industries 698.4 739.2 783.7 777.3 789.3 800.7 810.5 822.2 6 Service industries 1,026.7 1,075.2 1,161.6 1,147.5 1,171.1 1,198.6 1,215.1 1,244.9 7 Government and government enterprises 584.2 602.5 621.7 619.6 624.1 626.9 634.0 639.0 8 Other labor income 380.9 402.2 424.0 422.0 425.9 430.2 429.1 434.0 9 Proprietors' income 420.0 450.9 478.3 474.7 479.6 486.7 499.5 516.1 10 Business and professional1 388.1 415.9 449.3 447.1 451.5 454.9 461.1 470.0 11 Farm1 32.0 35.0 29.0 27.6 28.1 31.8 38.4 46.1 12 Rental income of persons 102.5 116.6 122.2 121.6 120.9 125.8 126.9 123.1 13 Dividends 186.8 199.6 214.8 212.2 215.8 221.7 226.6 229.3 14 Personal interest income 648.1 663.7 717.1 716.6 719.9 727.2 726.1 732.9 15 Transfer payments 910.7 956.3 1,022.6 1,016.8 1,029.9 1,041.4 1,063.0 1,075.8 16 Old age survivors, disability, and health insurance benefits 444.4 472.9 507.4 505.1 510.7 516.1 529.9 536.3 17 LESS: Personal contributions for social insurance 259.6 278.1 294.5 292.7 296.2 298.8 301.0 305.8 18 EQUALS: Personal income 5,480.1 5,753.1 6,115.1 6,074.4 6,146.9 6,234.5 6,308.5 6,412.1 19 LESS: Personal tax and nontax payments 689.9 731.4 794.3 801.5 798.4 807.2 824.9 867.3 20 EQUALS: Disposable personal income 4,790.2 5,021.7 5,320.8 5,272.9 5,348.5 5,427.3 5,483.5 5,544.7 21 LESS: Personal outlays 4,575.8 4,832.3 5,071.5 5,054.4 5,106.6 5,144.7 5,218.1 5,300.9 22 EQUALS: Personal saving 214.4 189.4 249.3 218.5 241.9 282.6 265.4 243.9 MEMO Per capita (chained 1992 dollars) 23 Gross domestic product 24,734.3 25,349.8 25,628.8r 25,555.9 25,726.7 25,684.5 25,753.3 2255,,999977..33 24 Personal consumption expenditures 16,806.7 17,158.2r 17,399.6' 17,395.8 17,453.8 17,459.9 17,570.2 17,677.5 25 Disposable personal income 18,078.0 18,330.0 18,799.0 18,676.0 18,829.0 18,986.0 19,041.0 19,073.0 26 Saving rate (percent) 4.5 3.8 4.7 4.1 4.5 5.2 4.8 4.4 GROSS SAVING 27 Gross saving 935.5 1,056.3 1,151.8 1,102.9 1,168.6 1,220.6 1,217.9 1,239.4 28 Gross private saving 962.4 1,006.7 1,071.8 1,018.5 1,085.9 1,138.9 1,133.8 1,120.9 29 Personal saving 214.4 189.4 249.3 218.5 241.9 282.6 265.4 243.9 30 Undistributed corporate profits' 103.3 123.2 140.6 123.5 159.6 158.4 171.8 174.0 31 Corporate inventory valuation adjustment -6.6 -13.3 -28.1 -42.3 -9.3 -8.8 -17.4 -13.0 Capital consumption allowances 32 Corporate 417.0 441.0 454.0 451.3 456.9 463.6 465.6 470.6 33 Noncorporate 223.1 237.7 225.2 222.4 224.7 233.4 229.1 232.4 34 Gross government saving -26.9 49.6 80.0 84.4 82.7 81.7 84.1 118.5 35 Federal -187.4 -119.6 -87.9 -86.9 -84.6 -80.7 -82.0 -58.4 36 Consumption of fixed capital 68.2 70.6 73.8 74.2 73.8 73.8 73.2 72.6 37 Current surplus or deficit (-), national accounts -255.6 -190.2 -161.7 -161.1 -158.5 -154.5 -155.2 -131.0 38 State and local 160.5 169.2 167.9 171.3 167.3 162.4 166.1 176.9 39 Consumption of fixed capital 65.6 69.4 72.9 72.3 73.4 74.3 75.1 76.0 40 Current surplus or deficit (—), national accounts 94.9 99.7 95.0 99.0 93.9 88.1 91.0 101.0 41 Gross investment 993.5 1,090.4 1,150.9 1,123.2 1,161.5 1,173.9 1,167.9 1,188.4 42 Gross private domestic investment 871.1 1,014.4 1,065.3 1,050.3 1,074.8 1,064.0 1,068.9 1,097.0 43 Gross government investment 210.6 212.3 221.9 223.7 224.7 220.1 228.8 235.4 44 Net foreign investment -88.2 -136.4 -136.3 -150.8 -138.1 -110.2 -129.9 -144.0 45 Statistical discrepancy 58.0 34.1 -.9 20.3 -7.1 -46.7 -50.0 -51.0 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

A50 International Statistics • November 1996 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 Item credits or debits Q2 Q3 Q4 Q1 Q2P 2 1 Ba M la e n r c c e h a o n n d c is u e r r t e r n a t d e a c b c a o l u a n n t c e2 -1 -9 3 9 2 , , 9 60 3 9 6 - -1 1 6 4 6 8 , , 1 4 2 0 1 5 - - 1 1 4 7 8 3 , , 1 4 5 2 4 4 - -4 4 7 0 , , 9 9 2 7 7 6 - - 3 4 7 2 , , 6 5 8 4 8 8 - - 3 3 0 8 , , 4 0 3 2 5 6 - - 4 3 2 4 , , 7 8 3 6 0 9 - - 3 4 8 6 , , 7 8 7 3 9 0 3 Merchandise exports 456,832 502,463 575,940 142,983 144,984 149,422 150,028 153,316 4 Merchandise imports -589,441 -668,584 -749,364 -190,910 -187,532 -187,448 -192,758 -200,146 5 Military transactions, net 881 1,963 3,585 859 1,120 978 489 835 6 Other service transactions, net 59,690 59,779 64,775 15,244 17,093 17,657 18,014 18,120 7 Investment income, net 9,742 -4,159 -8,016 -862 -4,361 -1,890 262 -1,604 8 U.S. government grants -16,823 -15,816 -10,959 -2,381 -2,933 -2,799 -4,259 -2,274 9 U.S. government pensions and other transfers. -4,081 -4,544 -3,420 -967 -964 -731 -960 -1,025 0 Private remittances and other transfers -16,736 -19,506 -20,696 -4,942 -5,095 -5,624 -5,685 -6,001 11 Change in U.S. government assets other than official reserve assets, net (increase, —) -342 -341 -179 252 -199 -152 -429 12 Change in U.S. official reserve assets (increase, -) . -1,379 5,346 -9,742 -2,722 -1,893 191 17 -523 1 1 3 4 G Sp o e ld c ial drawing rights (SDRs) -537 0 -441 0 -808 0 -156 0 362 0 -147 0 -199 0 -133 0 15 Reserve position in International Monetary Fund . -44 494 -2,466 -786 -991 -163 -849 -220 16 Foreign currencies -797 5,293 -6,468 -1,780 -1,264 501 1,065 -170 1 1 7 8 Ch B an a g n e k -r in e p U or .S te . d p r c i l v a a i t m e s a 3 ssets abroad (increase, -). -19 2 2 9 , , 8 9 8 4 9 7 -1 - 5 8 5 , , 1 7 6 0 1 0 -2 -6 9 9 7 , , 1 8 4 3 6 4 -1 -4 0 1 5 , , 2 3 3 9 6 8 -37 8 , , 9 4 5 7 4 6 -9 -7 8 , , 2 2 7 0 2 6 -68 1 ,6 ,7 1 1 5 4 -4 -5 8 , , 1 2 4 1 9 3 19 Nonbank-reported claims 1,581 -32,804 -34,219 -22,904 7,500 -14,278 -12,707 20 U.S. purchases of foreign securities, net -146,253 -60,270 -98,960 -23,011 -35,839 -32,539 -34,420 -20,081 21 U.S. direct investments abroad, net -78,164 -54,466 -95,509 -18,247 -18,091 -44,117 -23,202 -22,983 22 Change in foreign official assets in United States (increase, +). 72,153 40,253 109,757 37,380 39,186 11,369 52,021 13,197 23 U.S. Treasury securities 48,952 30,745 68,813 25,208 20,489 12,984 55,600 -3,384 24 Other U.S. government obligations 4,062 6,077 3,734 1,326 518 764 52 1,258 25 Other U.S. government liabilities4 1,713 2,344 1,082 235 -71 1,249 -156 197 26 Other U.S. liabilities reported by U.S. banks3 14,841 3,560 32,862 7,662 18,478 -3,908 -3,264 13,841 27 Other foreign official assets5 2,585 -2,473 3,266 2,949 -228 280 -211 1,285 28 Change in foreign private assets in United States (increase, +) ... 178,843 245,123 314,705 78,041 79,630 87,860 47,450 67,118 29 U.S. bank-reported liabilities3 20,859 111,842 25,283 10,200 -21,542 32,765 -35,571 -3,862 30 U.S. nonbank-reported liabilities 10,489 -7,710 34,578 7,285 6,945 11,272 6,506 31 Foreign private purchases of U.S. Treasury securities, net. 24,381 34,225 99,340 30,368 37,269 1,734 11,832 31,680 32 Foreign purchases of other U.S. securities, net 80,092 57,006 95,268 20,496 31,971 27,321 35,993 28,567 33 Foreign direct investments in United States, net 43,022 49,760 60,236 9,692 24,987 14,768 28,690 10,733 34 Allocation of special drawing rights. 0 0 0 0 0 0 0 0 3 3 5 6 Dis D c u re e p t a o n c s y e asonal adjustment 43,550 13,724 31,548 33 -2 ,8 6 5 6 4 -4 -7 1 , , 4 5 0 3 7 3 29 1 , , 4 1 2 5 0 3 4 6 , , 1 2 4 7 8 9 7 -7 ,6 4 2 3 9 37 Before seasonal adjustment 43,550 13,724 31,548 34,120 -34,126 28,267 -2,131 8,372 MEMO Changes in official assets 38 U.S. official reserve assets (increase, —) -1,379 5,346 -9,742 -2,722 -1,893 191 17 -523 39 Foreign official assets in United States, excluding line 25 (increase, +) 70,440 37,909 108,675 37,145 39,257 10,120 52,177 13,000 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -3,717 -1,529 6,147 -1,435 5,126 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 with 2. Data are on an international accounts basis. The data differ from the Census basis data, or through foreign official agencies. shown in table 3.11, for reasons of coverage and timing. Military exports are excluded from 5. Consists of investments in U.S. corporate stocks and in debt securities of private merchandise trade data and are included in line 5. corporations and state and local governments. 3. Reporting banks include all types of depository institutions as well as some brokers and SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current dealers. Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A51 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1996 IItteemm 11999933 11999944 11999955 Jan.r Feb.r Mar.r Apr.r Mayr June Julyp 1 Goods and services, balance -72,037 -104,381 -105,064 -9,568 -6,783 -7,873 -9,396 -10,455 -8,190 -11,682 2 Merchandise -132,607 -166,123 -173,424 -15,497 -12,784 -14,448 -15,584 -16,791 -14,620 -17,523 3 Services 60,570 61,742 68,360 5,929 6,001 6,575 6,188 6,336 6,430 5,841 4 Goods and services, exports 642,953 698,301 786,529 66,594 69,226 69,332 69,200 70,170 69,730 67,191 5 Merchandise 456,834 502,462 575,939 48,653 50,883 50,492 50,741 51,384 50,972 48,621 6 Services 186,119 195,839 210,590 17,941 18,343 18,840 18,459 18,786 18,758 18,570 7 Goods and services, imports -714,990 -802,682 -891,593 -76,162 -76,009 -77,205 -78,596 -80,625 -77,920 -78,873 8 Merchandise -589,441 -668,585 -749,363 -64,150 -63,667 -64,940 -66,325 -68,175 -65,592 -66,144 9 Services -125,549 -134,097 -142,230 -12,012 -12,342 -12,265 -12,271 -12,450 -12,328 -12,729 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 1996 AAsssseett 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June July Aug.P 1 Total 73,442 74,335 85,832 82,717 84,270 84,212 83,710 83,468 83,455 85,099 76,781 2 Gold stock, including Exchange Stabilization Fund1 11,053 11,051 11,050 11,052 11,053 11,053 11,052 11,051 11,050 11,050 11,050 3 Special drawing rights2'3 9,039 10,039 11,037 10,778 11,106 11,049 10,963 11,037 11,046 11,216 10,307 4 Reserve position in International Monetary Fund2 11,818 12,030 14,649 14,312 14,813 15,249 15,117 15,227 15,282 15,665 15,597 5 Foreign currencies4 41,532 41,215 49,096 46,575 47,298 46,861 46,578 46,153 46,077 47,168 39,827 1. Gold held "under earmark" at Federal Reserve Banks for foreign and international SDR holdings and reserve positions in the IMF also have been valued on this basis since July accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold 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 year 2. Special drawing rights (SDRs) are valued according to a technique adopted by the indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979— International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of $1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs. exchange rates for the currencies of member countries. From July 1974 through December 4. Valued at current market exchange rates. 1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1996 AAsssseett 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June July Aug.P 1 Deposits 386 250 386 165 209 191 166 160 182 166 171 Held in custody 2 U.S. Treasury securities2 379,394 441,866 522,170 532,776 559,741 573,435 573,924 578,608 572,839 580,277 590,367 3 Earmarked gold 12,327 12,033 11,702 11,702 11,689 11,590 11,445 11,339 11,296 11,273 11,217 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; not organizations. 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

A52 International Statistics • November 1996 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1996 IItteemm 11999944rr 11999955 Jan. Feb. Mar. Apr. May June Julyp 1 Total1 520,934 630,775 644,570 670,229 682,952 687,217 689,726r 696,309 699,389 By type 2 Liabilities reported by banks in the United States 73,386 107,258 103,919 103,242 103,994 111,017 104,94 lr 118,190 113,316 3 U.S. Treasury bills and certificates3 139,571 168,534 173,949 119911,,118888 119988,,338822 118866,,663388 118888,,332211 118877,,117711 118866,,006611 U.S. Treasury bonds and notes 4 Marketable 254,059 293,684 306,299 314,980 319,728 327,981 334,463 327,815 337,444 5 Nonmarketable4 6,109 6,491 6,120 6,159 6,199 6,238 5,903 5,941 5,980 6 U.S. securities other than U.S. Treasury securities5 47,809 54,808 54,283 54,660 54,649 55,343 56,098 57,192 56,588 By area 1 Europe1 215,374 222,314 223,569 231,389 242,589 241,161 244,294 245,385 245,378 8 Canada 17,235 19,473 19,078 18,850 20,846 20,878 21,670 21,250 20,153 9 Latin America and Caribbean 41,492 66,720 70,281 70,497 73,039 71,287 67,964r 70,063 67,911 10 Asia 236,824 310,966 320,512 338,999 335,006 341,148 343,206 346,102 350,747 11 Africa 4,180 6,296 6,924 6,574 6,584 7,388 7,173 6,996 6,910 12 Other countries 5,827 5,004 4,204 3,918 4,886 5,353 5,417 6,511 8,288 1. Includes the Bank for International Settlements. Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, 1993, 30-year maturity issue. negotiable time certificates of deposit, and borrowings under repurchase agreements. 5. Debt securities of U.S. government corporations and federally sponsored agencies, and 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official U.S. corporate stocks and bonds. institutions of foreign countries. SOURCE. Based on U.S. Department of the Treasury data and on data reported to the 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of department by banks (including Federal Reserve Banks) and securities dealers in the United zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning States, and on the 1989 benchmark survey of foreign portfolio investment in the United March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue; States. 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 1995 1996 IItteemm 11999922 11999933 11999944 Sept. Dec. Mar. June 1 Banks' liabilities 72,796 78,259 89,284 102,147 112,556 109,635 111,967 2 Banks' claims 62,799 62,017 60,689 69,481 74,830 69,522 65,859 3 Deposits 24,240 20,993 19,661 25,712 22,688 22,220 20,871 4 Other claims 38,559 41,024 41,028 43,769 52,142 47,302 44,988 5 Claims of banks' domestic customers2 4,432 12,854 10,878 6,624 6,145 6,064 7,377 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

Bank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1996 IItteemm 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June JulyP BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 926,672 1,014,808 1,099,665 1,098,640 1,101,912 1,100,426 1,100,602 l,096,061r 1,098,072 1,083,833 2 Banks' own liabilities 626,919 718,440 753,545 747,461 732,922 729,805 735,762 723,564r 731,451 715,233 3 Demand deposits 21,569 23,386 24,460 22,182 23,507 23,371 23,958 23,340r 27,489 24,961 4 Time deposits2 175,106 186,512 192,700 198,434 192,116 193,549 192,011 181,026' 189,737 193,412 5 Other3 111,971 112,984 139,780 141,963 149,009 138,311 146,589 144,051 149,285 144,110 6 Own foreign offices4 318,273 395,558 396,605 384,882 368,290 374,574 373,204 375,147 364,940 352,750 7 Banks' custodial liabilities5 299,753 296,368 346,120 351,179 368,990 370,621 364,840 372,497 366,621 368,600 8 U.S. Treasury bills and certificates6 176,739 162,908 197,341 220033,,447788 222233,,339955 228,705 217,106 220,823 218,604 217,548 9 Other negotiable and readily transferable instruments7 36,289 42,532 52,246 46,973 43,404 40,483 44,823 49,655 51,465 56,345 10 Other 86,725 90,928 96,533 100,728 102,191 101,433 102,911 102,019 96,552 94,707 11 Nonmonetary international and regional organizations8 ... 10,936 8,606 11,039 10,622 11,109 9,476 11,266 11,969' 12,108 11,512 12 Banks' own liabilities 5,639 8,176 10,347 9,628 10,314 8,558 10,440 11,182' 10,864 10,315 13 Demand deposits 15 29 21 30 43 16 28 34 123 22 14 Time deposits2 2,780 3,298 4,656 4,385 3,479 3,527 3,979 3,417' 4,002 3,667 15 Other3 2,844 4,849 5,670 5,213 6,792 5,015 6,433 7,731 6,739 6,626 16 Banks' custodial liabilities5 5,297 430 692 994 795 918 826 787 1,244 1,197 17 U.S. Treasury bills and certificates6 4,275 281 350 764 555 564 426 376 874 865 18 Other negotiable and readily transferable instruments7 1,022 149 341 230 230 298 400 390 370 330 19 Other 0 0 1 0 10 56 0 21 0 2 20 Official institutions9 220,821 212,957 275,792 277,868 294,430 302,376 297,655 293,262' 305,361 299,377 21 Banks' own liabilities 64,144 59,935 83,311 85,040 84,077 88,537 91,602 81,909' 91,857 83,683 22 Demand deposits 1,600 1,564 2,098 1,522 1,655 1,423 1,679 1,504 2,209 2,211 23 Time deposits2 21,653 23,511 30,716 28,069 29,904 32,404 36,637 32,671' 38,929 36,741 24 Other3 40,891 34,860 50,497 55,449 52,518 54,710 53,286 47,734 50,719 44,731 25 Banks' custodial liabilities5 156,677 153,022 192,481 192,828 210,353 213,839 206,053 211,353 213,504 215,694 26 U.S. Treasury bills and certificates6 151,100 139,571 168,534 173,949 119911,,118888 198,382 186,638 188,321 187,171 186,061 27 Other negotiable and readily transferable instruments7 5,482 13,245 23,603 18,532 18,138 14,970 19,065 22,661 25,835 29,262 28 Other 95 206 344 347 1,027 487 350 371 498 371 29 Banks10 592,171 678,367 691,555 687,180 670,727 666,739 665,490 662,336' 654,266 640,811 30 Banks' own liabilities 478,755 563,466 567,980 558,951 541,421 539,657 537,427 533,019' 530,472 519,648 31 Unaffiliated foreign banks 160,482 167,908 171,375 174,069 173,131 165,083 164,223 157,872' 165,532 166,898 32 Demand deposits 9,718 10,633 11,756 10,247 10,948 10,971 11,453 10,663' 12,388 11,779 33 Time deposits2 105,262 111,171 103,554 110,436 104,230 101,013 96,222 89,075 90,634 95,575 34 Other3 45,502 46,104 56,065 53,386 57,953 53,099 56,548 58,134 62,510 59,544 35 Own foreign offices4 318,273 395,558 396,605 384,882 368,290 374,574 373,204 375,147 364,940 352,750 36 Banks' custodial liabilities5 113,416 114,901 123,575 128,229 129,306 127,082 128,063 129,317 123,794 121,163 37 U.S. Treasury bills and certificates6 10,712 11,251 15,869 15,992 1177,,994477 15,967 16,801 17,584 18,241 18,091 38 Other negotiable and readily transferable instruments7 17,020 14,505 13,035 13,590 12,094 11,864 10,814 11,775 11,021 10,359 39 Other 85,684 89,145 94,671 98,647 99,265 99,251 100,448 99,958 94,532 92,713 40 Other foreigners 102,744 114,878 121,279 122,970 125,646 121,835 126,191 128,494' 126,337 132,133 41 Banks' own liabilities 78,381 86,863 91,907 93,842 97,110 93,053 96,293 97,454' 98,258 101,587 42 Demand deposits 10,236 11,160 10,585 10,383 10,861 10,961 10,798 11,139 12,769 10,949 43 Time deposits2 45,411 48,532 53,774 55,544 54,503 56,605 55,173 55,863' 56,172 57,429 44 Other3 22,734 27,171 27,548 27,915 31,746 25,487 30,322 30,452 29,317 33,209 45 Banks' custodial liabilities5 24,363 28,015 29,372 29,128 28,536 28,782 29,898 31,040 28,079 30,546 46 U.S. Treasury bills and certificates6 10,652 11,805 12,588 1122,,777733 13,705 13,792 13,241 14,542 12,318 12,531 47 Other negotiable and readily transferable instruments7 12,765 14,633 15,267 14,621 12,942 13,351 14,544 14,829 14,239 16,394 48 Other 946 1,577 1,517 1,734 1,889 1,639 2,113 1,669 1,522 1,621 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 17,567 17,895 9,099 10,479 10,544 10,005 8,306 9,284 9,580 7,877 1. Reporting banks include all types of depository institutions as well as some brokers and 6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official dealers. Excludes bonds and notes of maturities longer than one year. institutions of foreign countries. 2. Excludes negotiable time certificates of deposit, which are included in "Other negotia- 7. Principally bankers acceptances, commercial paper, and negotiable time certificates of ble and readily transferable instruments." 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 subsidiar- American Development Bank, and the Asian Development Bank. Excludes "holdings of ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory dollars" of the International Monetary Fund. agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists 9. Foreign central banks, foreign central governments, and the Bank for International principally of amounts owed to the head office or parent foreign bank, and to foreign Settlements. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. 10. Excludes central banks, which are included in "Official institutions." 5. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks for foreign customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • November 1996 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1996 IItteemm 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June July1' AREA 50 Total, all foreigners 926,672 1,014,808 1,099,665 1,098,640 1,101,912 1,100,426 1,100,602 l,096,061r l,098,072r 1,083,833 51 Foreign countries 915,736 1,006,202 1,088,626 1,088,018 1,090,803 1,090,950 1,089,336 l,084,092r l,085,964r 1,072,321 52 Europe 377,911 390,710 362,786 368,325 374,048 370,581 375,525 367,756' 363,805' 357,798 53 Austria 1,917 3,588 3,537 3,437 2,996 2,848 3,477 3,624 3,209' 3,002 54 Belgium and Luxembourg 28,670 21,877 24,842 24,881 27,182 25,584 27,572 25,955 20,856' 22,093 55 Denmark 4,517 2,884 2,921 2,979 3,861 2,876 2,787 2,645 2,796 2,871 56 Finland 1,872 1,436 2,831 2,421 2,409 1,768 2,203 2,188 1,589' 1,200 5! France 40,316 44,361 39,204 39,697 41,099 41,332 41,304 39,640 40,590' 36,344 58 Germany 26,685 27,109 24,035 25,988 24,695 25,229 24,854 23,950 25,853' 24,348 59 Greece 1,519 1,393 2,011 1,998 2,063 1,966 1,714 1,665 1,690 1,811 60 Italy 11,759 10,885 10,875 9,616 12,468 11,475 10,178 11,045 12,109 12,804 61 Netherlands 16,096 16,033 13,724 11,350 12,173 12,839 12,397 1122,,557788 12,162' 11,863 62 Norway 2,966 2,338 1,394 1,067 1,246 1,034 915 882288 1,388 1,435 63 Portugal 3,366 2,846 2,761 3,055 2,931 2,843 2,529 1,858 1,401 1,783 64 Russia 2,511 2,726 7,950 7,858 9,180 9,321 8,798 7,260 6,925 6,047 65 Spain 20,496 14,675 10,012 11,838 11,589 18,976 19,548 19,005' 20,315' 19,364 66 Sweden 2,738 3,094 3,245 2,555 2,813 2,256 3,943 2,410 2,693 2,740 6/ Switzerland 41,560 40,515 43,627 40,806 42,010 39,083 36,805 37,099 39,008 39,623 6688 Turkey 3,227 3,341 4,124 4,350 4,559 4,103 4,453 4,669 4,926 5,619 6699 United Kingdom 133,993 163,795 139,127 152,654 146,985 144,136 146,612 146,335 143,800' 139,712 / / 0 I O Y t u h g e o r s l E a u v r ia o " p e and other former U.S.S.R.'2 33,3 3 3 7 1 2 27,7 24 6 5 9 26,3 1 8 7 9 7 21,6 1 1 6 2 3 23,6 1 2 6 6 3 22,7 1 6 4 9 3 25,2 1 9 4 1 5 24,8 1 5 4 6 6 22, 2 2 1 7 7 8 ' 24,9 2 3 0 1 8 72 20,235 24,768 30,470 33,012 32,031 31,500 31,285 33,178 33,389 28,807 73 Latin America and Caribbean 362,238 423,830 440,216 435,624 421,950 433,599 430,933 433,060' 432,729' 430,026 74 Argentina 14,477 17,203 12,236 13,524 11,764 11,985 14,117 11,650 13,580 12,501 75 Bahamas 73,820 104,002 94,991 96,771 91,124 87,987 85,769 86,303 85,257 85,973 lb Bermuda 8,117 8,424 4,897 4,633 4,702 5,035 4,262 4,998 4,312' 4,205 1/ Brazil 5,301 9,145 23,797 22,715 21,761 21,483 20,222 20,105 25,902' 23,183 78 British West Indies 193,699 229,599 239,083 233,383 227,438 240,611 239,129 243,235' 234,327' 232,816 19 Chile 3,183 3,127 2,825 2,978 2,772 2,815 2,882 2,867 2,937 2,841 80 Colombia 3,171 4,615 3,666 3,505 3,682 3,637 3,790 33,,440000'' 3,650' 3,329 81 Cuba 33 13 8 7 7 7 13 88 10 10 82 Ecuador 880 875 1,315 1,236 1,201 1,274 1,265 1,284 1,302 1,405 83 Guatemala 1,207 1,121 1,275 1,058 1,075 1,060 1,085 1,073 1,073 1,092 84 Jamaica 410 529 481 500 495 503 516 550 534 562 85 Mexico 28,019 12,227 24,555 23,643 23,899 24,577 23,330 23,214 24,777 26,314 86 Netherlands Antilles 4,686 5,217 4,672 4,448 4,461 4,402 5,272 4,722 5,162 5,530 87 Panama 3,582 4,551 4,265 4,030 4,166 4,026 3,887 3,846 3,878 3,852 88 929 900 974 1,025 1,092 962 1,081 1,064 1,013' 1,029 89 Uruguay 1,611 1,597 1,835 1,799 1,726 1,908 1,748 1,757 1,769 1,836 90 Venezuela 12,786 13,985 11,810 12,662 12,611 13,255 14,244 14,672 14,926' 15,261 91 Other 6,327 6,700 7,531 7,707 7,974 8,072 8,321 8,312' 8,320' 8,287 92 Asia 114444,,552277 115544,,333344 224400,,774400 223388,,117755 224499,,444477 224411,,995588 223377,,770055 223355,,990099'' 223399,,227788'' 223388,,554400 China 93 People's Republic of China 4,011 10,066 33,750 35,733 32,200 24,430 25,861 24,857 25,483' 28,587 94 Republic of China (Taiwan) 10,627 9,844 11,714 12,311 12,955 15,513 14,953 14,598 16,621' 16,079 95 Hong Kong 17,132 17,104 20,303 20,307 22,286 20,187 18,379 18,606' 18,244' 19,666 96 1,114 2,338 3,373 3,263 3,527 3,990 3,752 3,938 4,012 3,954 91 Indonesia 1,986 1,587 2,708 2,011 2,349 2,169 2,627 2,374 2,315' 2,561 98 Israel 4,435 5,157 4,073 4,348 5,780 5,344 5,450 5,123 5,199 4,444 99 Japan 61,466 62,981 109,193 106,728 113,361 117,325 111,635 111,500' 113,802 112,686 100 Korea (South) 4,913 5,124 5,749 5,092 5,607 5,875 5,860 5,664 6,674' 5,661 101 Philippines 2,035 2,714 3,089 2,394 2,366 2,336 2,467 2,897 2,970 3,041 102 Thailand 6,137 6,466 12,279 13,121 13,389 12,158 12,905 13,387 12,253' 11,713 103 Middle Eastern oil-exporting countries'3 15,822 15,482 15,582 14,417 13,491 13,741 14,895 14,234 13,379 12,942 104 Other 14,849 15,471 18,927 18,450 22,136 18,890 18,921 18,731 18,326' 17,206 105 6,633 6,524 7,641 7,679 7,818 7,089 7,832 7,404 7,507 7,558 106 Egypt 2,208 1,879 2,136 1,848 2,375 2,057 2,002 1,873 1,831 2,114 10/ Morocco 99 97 104 99 52 65 114 113 115 133 108 South Africa 451 433 739 1,217 665 413 11,,000011 745 666 648 109 Zaire 12 9 10 11 8 9 88 16 6 13 110 Oil-exporting countries'4 1,303 1,343 1,797 1,774 1,968 1,706 1,904 1,887 2,013 1,928 111 Other 2,560 2,763 2,855 2,730 2,750 2,839 2,803 2,770 2,876 2,722 112 Other 4,192 6,036 6,773 5,203 5,509 6,223 6,056 6,785 9,256' 9,592 113 Australia 3,308 5,142 5,644 4,326 4,503 5,239 4,896 5,757 7,981 8,385 114 Other 884 894 1,129 877 1,006 984 1,160 1,028 1,275' 1,207 115 Nonmonetary international and regional organizations. .. 10,936 8,606 11,039 10,622 11,109 9,476 11,266 11,969' 12,108' 11,512 116 International'5 6,851 7,537 9,300 9,639 10,075 7,938 9,982 10,572r 10,799' 10,073 117 Latin American regional'6 3,218 613 893 349 292 758 422 624r 502' 831 118 Other regional'7 867 456 846 634 742 780 862 773 807 608 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A55 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 1996 AArreeaa oorr ccoouunnttrryy 11999933 11999944 11999955 Jan. Feb. Mar. Apr. May June Julyp 1 Total, all foreigners 488,497 483,242 529,948 527,317 520,790 531,340 527,363 519,917r 536,231 557,294 2 Foreign countries 486,092 478,651 528,017 525,015 518,011 527,526 524,647 516,423r 533,202 555,180 3 Europe 123,741 123,380 130,315 133,923 138,574 138,820 135,605 134,459r 146,205 142,139 4 Austria 412 692 565 683 773 892 1,213 1,212 1,088 1,128 5 f t B D e e l n g m iu a m rk and Luxembourg 6,5 38 3 2 2 6 1 , , 7 1 3 2 8 9 7, 4 59 03 9 8,3 5 6 4 5 1 8,5 5 1 9 9 9 6, 6 0 9 0 8 3 8,6 5 8 4 8 3 8,7 4 1 8 1 2 6,9 4 2 3 1 2 6,6 31 8 9 6 7 Finland 594 512 1,055 1,397 1,313 1,782 1,305 1,282 1,013 1,629 8 France 11,822 12,146 14,798 12,253 13,161 13,740 11,604 11,954 11,768 10,571 9 Germany 7,724 7,608 8,864 8,072 8,774 9,260 8,647 8,099 11,831 9,738 in Greece 691 604 449 555 603 507 622 554 563 527 11 Italy 8,834 6,043 5,364 5,010 4,838 5,865 5,696 6,172r 5,721 6,026 12 Netherlands 3,063 2,959 5,051 4,305 4,722 5,585 6,346 5,618 6,546 6,357 13 Norway 396 504 665 1,098 1,408 1,016 793 933 1,243 1,397 14 Portugal 834 938 888 853 743 773 889 813 704 667 15 Russia 2,310 973 660 678 775 868 741 482 440 517 16 Spain 3,717 3,530 2,166 3,811 4,041 5,420 5,092 3,158 2,519 2,164 17 Sweden 4,254 4,098 2,060 2,315 2,151 2,206 3,534 2,526 2,799 2,802 18 Switzerland 6,605 55,,774466 7,074 4,613 4,016 4,841 6,370 8,713 12,145 9,524 19 Turkey 1,301 887788 785 732 707 810 973 873r 933 912 20 United Kingdom 62,013 66,846 67,388 75,147 78,040 73,741 69,117 69,557r 75,839 78,393 21 Yugoslavia2 473 265 147 481 118 120 208 204 164 159 22 Other Europe and other former U.S.S.R.3 1,784 1,171 4,334 3,014 3,273 4,693 3,224 3,116 3,536 2,623 23 Canada 18,617 18,490 20,192 20,068 18,421 18,040 22,061 20,885 22,255 23,576 24 Latin America and Caribbean 225,238 223,523 256,955 257,146 248,483 252,727 245,845 238,291' 239,866 265,406 25 Argentina 4,474 5,844 6,439 6,185 6,057 6,216 6,187 6,037 6,448 6,598 26 Bahamas 63,353 66,410 58,815 60,284 63,240 65,628 54,911 56,383' 60,593 71,993 27 Bermuda 8,901 8,481 5,717 5,011 4,742 4,829 5,031 2,993 3,620 3,463 28 Brazil 11,848 9,583 13,297 13,252 13,915 13,813 14,175 14,194' 15,076 15,200 29 British West Indies 99,319 95,741 123,914 122,759 108,833 113,239 118,599 110,760' 102,649 100,602 30 Chile 3,643 3,820 5,024 4,996 4,593 4,559 4,605 4,363 4,402 4,333 31 Colombia 3,181 4,004 4,550 4,622 4,492 4,547 4,517 4,523 4,538 4,511 32 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 681 682 825 841 842 977 959 944 962 897 34 Guatemala 288 366 457 439 461 465 473 461 452 463 35 Jamaica 195 258 323 299 362 332 335 345 359 346 36 Mexico 15,879 17,749 18,028 17,114 17,167 16,953 17,071 16,877' 16,820 16,975 37 Netherlands Antilles 2,683 1,396 9,229 11.043 12,973 10,902 8,728 8,674 12,888 29,224 38 Panama 2,894 2,198 3,018 2,845 2,820 2,612 2,503 2,607' 2,567 2,184 39 Peru 657 997 1,829 1,762 1,928 1,936 2,042 2,140' 2,395 2,568 40 Uruguay 969 503 466 422 463 623 578 602 623 589 41 Venezuela 2,910 1,831 1,661 1,575 1,572 1,559 1,377 1,279 1,390 1,504 42 Other 3,363 3,660 3,363 3,697 4,023 3,537 3,754 5,109 4,084 3,956 43 111,775 107,079 115,361 108,989 107,056 111,390 115,030 116,562' 118,293 117,308 China 44 People's Republic of China 2,271 836 1,023 1,014 1,351 2,439 3,405 2,857 2,141 1,344 45 Republic of China (Taiwan) 2,625 1,448 1,713 1,407 1,404 1,729 1,626 1,514 1,490 1,301 46 Hong Kong 10,828 9,161 12,895 13,254 13,867 15,545 15,329 14,745' 15,997 15,749 47 India 589 994 1,846 1,864 1,859 1,869 1,787 1,786 1,794 1,785 48 Indonesia 1,527 1,470 1,678 1,458 1,478 1,604 1,526 1,563' 1,539 1,744 49 Israel 826 688 739 668 683 665 642 615 620 682 50 Japan 60,032 59,151 61,308 55,897 55,077 52,776 54,657 54,685 54,189 53,805 51 Korea (South) 7,539 10,286 14,089 14,501 15,523 17,362 17,250 18,424' 19,261 18,578 52 Philippines 1,410 662 1,350 814 779 1,202 779 838' 1,298 1,244 53 Thailand 2,170 2,902 2,599 2,397 3,256 3,060 2,970 3,015 3,194 2,824 54 Middle Eastern oil-exporting countries4 15,115 13,748 9,639 8,053 6,410 7,145 7,252 8,976 8,348 9,510 55 Other 6,843 5,733 6,482 7,662 5,369 5,994 7,807 7,544' 8,422 8,742 56 Africa 3,861 3,050 2,727 2,798 2,879 2,884 2,743 2,715' 2,766 2,761 57 Egypt 196 225 210 208 237 247 225 217 198 216 58 Morocco 481 429 514 514 561 585 594 628 639 602 59 South Africa 633 671 465 483 520 567 493 468 515 441 60 Zaire 4 2 1 1 1 1 1 1 1 1 61 Oil-exporting countries5 1,129 856 552 589 526 516 501 478 474 470 62 Other 1,418 867 985 1,003 1,034 968 929 923' 939 1,031 63 Other 2,860 3,129 2,467 2,091 2,598 3,665 3,363 3,511 3,817 3,990 64 Australia 2,037 2,186 1,622 1,822 2,243 2,645 2,620 2,333 2,513 3,172 65 Other 823 943 845 269 355 1,020 743 1,178 1,304 818 66 Nonmonetary international and regional organizations6 . .. 2,405 4,591 1,931 2,302 2,779 3,814 2,716 3,494 3,029 2,114 1. Reporting banks include all types of depository institutions as well as some brokers and 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 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 all 6. Excludes the Bank for International Settlements, which is included in "Other Europe." parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • November 1996 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 1996 TTyyppee ooff ccllaaiimm 11999933 11999944 11999955 Jan. Feb. Mar. Apr. Mayr June Julyp 1 Total 575,818 599,521 652,715 657,231 661,113 2 Banks' claims 488,497 483,242 529,948 527,317 520,790 531,340 527,363 519,917 536,231 557,294 3 Foreign public borrowers 29,228 23,416 22,522 23,148 24,383 27,759 26,263 22,215 22,949 19,355 4 Own foreign offices2 285,510 283,183 307,509 305,118 295,217 297,601 298,972 301,889 307,494 313,222 5 Unaffiliated foreign banks 100,865 109,228 98,702 97,240 98,139 103,509 101,182 98,388 105,353 107,873 6 Deposits 49,892 59,250 37,343 35,520 37,565 41,914 37,393 35,437 33,835 35,962 7 Other 50,973 49,978 61,359 61,720 60,574 61,595 63,789 62,951 71,518 71,911 8 All other foreigners 72,894 67,415 101,215 101,811 103,051 102,471 100,946 97,425 100,435 116,844 9 Claims of banks' domestic customers3 87,321 116,279 122,767 125,891 124,882 10 Deposits 41,734 64,829 58,519 68,800 71,441 11 Negotiable and readily transferable instruments4 31,186 36,008 44,161 39,274 37,331 12 Outstanding collections and other claims 14,401 15,442 20,087 17,817 16,110 MEMO 13 Customer liability on acceptances 7,920 8,427 8,410 9,026 9,335 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 29,150 32,796 30,717 27,830 32,777 32,913r 32,384 34,258 31,136 32,270 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are principally of amounts due from the head office or parent foreign bank, and from foreign for quarter ending with month indicated. branches, agencies, or wholly owned subsidiaries of the head office or 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, bankers acceptances, and commercial 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiar- paper. ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 5. Includes demand and time deposits and negotiable and nonnegotiable certificates of agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists deposit denominated in U.S. dollars issued by banks abroad. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1995 1996 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999922 11999933 11999944 Sept. Dec. Mar. Junep 1 Total 195,119 202,566 200,042 216,986 222,338 233,591 228,629 By borrower 2 Maturity of one year or less 163,325 172,662 168,331 178,686 176,172 193,803 186,099 3 Foreign public borrowers 17,813 17,828 15,435 14,192 15,015 19,569 14,862 4 All other foreigners 145,512 154,834 152,896 164,494 161,157 174,234 171,237 5 Maturity of more than one year 31,794 29,904 31,711 38,300 46,166 39,788 42,530 6 Foreign public borrowers 13,266 10,874 7,838 8,220 7,506 8,110 8,114 7 All other foreigners 18,528 19,030 23,873 30,080 38,660 31,678 34,416 By area Maturity of one year or less 8 Europe 53,300 57,413 55,742 52,045 53,897 58,001 57,182 9 Canada 6,091 7,727 6,690 7,135 6,089 5,473 6,819 10 Latin America and Caribbean 50,376 60,490 58,877 71,319 72,393 84,297 78,359 11 45,709 41,418 39,851 42,556 40,133 40,332 38,479 17 Africa 1,784 1,820 1,376 1,261 1,271 1,302 1,279 13 All other3 6,065 3,794 5,795 4,370 2,389 4,398 3,981 Maturity of more than one year 14 Europe 5,367 5,310 4,203 4,594 4,885 6,827 8,191 15 Canada 3,287 2,581 3,505 3,571 2,731 2,563 3,689 16 Latin America and Caribbean 15,312 14,025 15,717 20,224 27,811 19,532 19,511 17 5,038 5,606 5,318 7,373 8,023 8,461 9,108 18 Africa 2,380 1,935 1,583 1,389 1,430 1,474 1,435 19 All other3 410 447 1,385 1,149 1,286 931 596 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity. dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1994 1995 1996 Area or country 11999922 11999933 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 344.7 407.7 486.1 486.4 496.6 541.8 526.3 527.0 549.0 571.6 605.0 2 G-10 countries and Switzerland 131.3 161.8 173.3 182.6 190.6 210.6 202.6 196.8 203.4 202.3 222. r 3 Belgium and Luxembourg .0 7.4 8.6 9.6 7.0 10.2 9.4 10.7 13.5 10.7 8.0 4 France 15.3 12.0 18.6 20.7 19.1 19.8 19.3 17.5 19.2 17.9 17.7 5 Germany 9.1 12.6 24.7 24.0 24.7 31.2 29.9 27.2 26.9 31.5 31.4 6 Italy 6.5 7.7 14.0 11.6 11.8 10.6 10.7 12.6 11.5 13.2 14.9 7 Netherlands .0 4.7 3.4 3.4 3.6 3.5 4.3 4.1 3.4 3.0 4.7 8 Sweden 2.3 2.7 3.0 2.6 2.7 3.1 3.0 2.7 2.7 3.3 2.7 9 Switzerland 4.8 5.9 5.4 5.5 5.1 5.7 6.2 6.3 6.3 5.2 6.3 10 United Kingdom 59.7 84.3 64.9 78.4 85.7 89.9 86.7 80.0 82.0 84.8 101.4 11 Canada 6.3 6.9 9.9 10.2 10.0 10.5 11.1 11.9 9.4 9.7 11.1 12 Japan 18.8 17.6 20.7 16.5 20.7 25.9 22.1 24.0 28.5 22.9 23.9 13 Other industrialized countries 24.0 25.6 42.6 42.6 45.2 44.1 43.3 50.1 50.2 61.3 55.5 14 Austria 1.2 .4 1.0 1.0 1.1 .9 .7 1.2 .9 1.3 1.2 15 Denmark .9 1.0 1.1 1.0 1.3 1.7 1.1 1.8 2.6 3.4 3.3 16 Finland .7 .4 .8 .8 .9 1.1 .5 .7 .8 .7 .6 17 Greece 3.0 3.2 4.6 4.3 4.5 4.9 5.0 5.1 5.7 5.6 5.6 18 Norway 1.2 1.7 1.6 1.6 2.0 2.4 1.8 2.3 3.2 2.1 2.3 19 Portugal .4 .8 1.1 1.0 1.2 1.0 1.2 1.9 1.3 1.6 1.6 20 Spain 8.9 9.9 12.6 14.0 13.6 14.1 13.3 13.3 11.6 17.5 13.6 21 Turkey 1.3 2.1 2.1 1.8 1.6 1.4 1.4 2.0 1.9 2.0 2.2 22 Other Western Europe 1.7 2.6 2.8 1.0 2.7 2.5 2.6 3.0 4.7 3.8 3.4 23 South Africa 1.7 1.1 1.2 1.2 1.0 1.5 1.4 1.3 1.2 1.7 2.0 24 Australia 2.9 2.3 13.7 15.0 15.4 12.6 14.3 17.4 16.4 21.7 19.7 25 OPEC2 15.8 17.4 21.6 21.7 23.9 19.5 20.3 22.4 22.1 21.2 20.1 26 Ecuador .6 .5 .5 .4 .5 .5 .7 .7 .7 .8 .9 27 Venezuela 5.2 5.1 4.4 3.9 3.7 3.5 3.5 3.0 2.7 2.9 2.3 28 Indonesia 2.7 3.3 3.2 3.3 3.8 4.0 4.1 4.4 4.8 4.7 4.9 29 Middle East countries 6.2 7.4 12.4 13.0 15.0 10.7 11.4 13.6 13.3 12.3 11.5 30 African countries 1.1 1.2 1.1 1.1 .9 .7 .6 .6 .6 .6 .5 31 Non-OPEC developing countries 72.6 83.1 94.8 93.2 96.0 98.5 103.6 104.0 112.6 116.8 125.9 Latin America 32 Argentina 6.6 7.7 9.8 10.5 11.2 11.4 12.3 10.9 12.9 12.7 14.1 33 Brazil 10.8 12.0 12.0 9.3 8.4 9.2 10.0 13.6 13.7 17.8 22.2 34 Chile 4.4 4.7 5.1 5.5 6.1 6.4 7.1 6.4 6.8 6.4 6.7 35 Colombia 1.8 2.1 2.4 2.4 2.6 2.6 2.6 2.9 2.9 2.9 2.8 36 Mexico 16.0 17.8 18.6 19.8 18.4 17.8 17.6 16.3 17.3 16.1 15.4r 37 Peru .5 .4 .6 .6 .5 .6 .8 .7 .8 .9 1.2 38 Other 2.6 3.1 2.7 2.8 2.7 2.4 2.6 2.6 2.8 3.1 3.1 Asia China 39 People's Republic of China .7 2.0 .8 1.0 1.1 1.1 1.4 1.7 1.8 3.3 2.9 40 Republic of China (Taiwan) 5.2 7.3 7.1 6.9 9.2 8.5 9.0 9.0 9.4 9.7 9.8 41 India 3.2 3.2 3.7 3.9 4.2 3.8 4.0 4.4 4.4 4.7 4.2 42 Israel .4 .5 .4 .4 .4 .6 .7 .5 .5 .5 .6' 43 Korea (South) 6.6 6.7 14.3 14.4 16.2 16.9 18.7 18.0 19.1 19.4 21.8 44 Malaysia 3.1 4.4 5.2 3.9 3.1 3.9 4.1 4.3 4.4 4.7 5.0 45 Philippines 3.6 3.1 3.2 2.9 3.3 3.0 3.6 3.3 4.1 3.9 4.7 46 Thailand 2.2 3.1 3.3 3.5 2.1 3.3 3.8 3.9 4.9 5.2 5.4 47 Other Asia 3.1 3.1 3.2 3.4 4.7 4.9 3.5 3.7 4.5 4.3 4.7 Africa 48 Egypt .2 .4 .5 .3 .3 .4 .4 .4 .4 .2 .2 49 Morocco .6 .7 .7 .7 .6 .6 .9 .9 .7 .7 .8 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.0 .8 1.0 .9 .8 .7 .6 .7 .9 .7 .8 52 Eastern Europe 3.1 3.2 3.2 3.0 2.7 2.3 1.8 3.4 4.2 6.2 5.0 53 Russia4 1.9 1.6 1.3 1.1 .8 .7 .4 .6 1.0 1.4 1.0 54 Yugoslavia5 .6 .6 .5 .5 .5 .4 .3 .4 .3 .3 .3 55 Other .6 .9 1.4 1.5 1.4 1.2 1.0 2.3 2.8 4.5 3.7 56 Offshore banking centers 58.1 73.0 80.6 77.2 71.4 84.4 82.1 86.0 99.0 100.7 103.8r 57 Bahamas 6.9 10.9 13.3 13.8 10.3 12.5 8.4 12.6 11.0 13.4 17.3 58 Bermuda 6.2 8.9 6.5 6.0 8.4 8.6 8.3 6.1 6.3 5.3 4.1r 59 Cayman Islands and other British West Indies 21.5 18.0 23.8 21.5 19.9 19.4 23.7 23.4 32.1 28.5 23.7' 60 Netherlands Antilles 1.1 2.6 2.5 1.7 1.3 .9 2.4 5.5 9.9 10.7 13.0 61 Panama6 1.9 2.4 2.0 1.9 1.3 1.1 1.3 1.3 1.4 1.6 1.7 62 Lebanon 63 Hong Kong 13^9 18.7 21.8 203 19.9 22^5 23 J 23.7 25J 25.7 27.8 64 Singapore 6.5 11.2 10.6 11.8 10.1 19.2 14.8 13.3 13.1 15.4 15.9 65 Other' .0 .1 .0 .0 .1 .0 .0 .1 .1 .1 .1 66 Miscellaneous and unallocated8 39.7 43.4 69.7 65.8 66.7 82.2 72.3 64.0 57.3 62.5 72.2' 1. The banking offices covered by these data include U.S. offices and foreign branches of 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 covered OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include Arab Emirates); and Bahrain and Oman (not formally members of OPEC). large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository 3. Excludes Liberia. Beginning March 1994 includes Namibia. institutions as well as some types of brokers and dealers. To eliminate duplication, the data 4. As of December 1992, excludes other republics of the former Soviet Union. are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign 5. As of December 1992, excludes Croatia, Bosnia and Hercegovinia, and Slovenia. 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 country 7. Foreign branch claims only. risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks 8. Includes New Zealand, Liberia, and international and regional organizations. 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

A58 International Statistics • November 1996 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1994 1995 1996 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999922 11999933 11999944 Dec. Mar. June Sept. Dec. Mar. 1 Total 45,511 50,597 54,309 54,309 50,187 49,973 47,673 46,448 49,907 2 Payable in dollars 37,456 38,728 38,298 38,298 35,903 34,281 33,908 33,903 36,273 3 Payable in foreign currencies 8,055 11,869 16,011 16,011 14,284 15,692 13,765 12,545 13,634 By type 4 Financial liabilities 23,841 29,226 32,954 32,954 29,775 29,282 26,237 24,241 26,570 5 Payable in dollars 16,960 18,545 18,818 18,818 16,704 15,028 13,872 12,903 13,831 6 Payable in foreign currencies 6,881 10,681 14,136 14,136 13,071 14,254 12,365 11,338 12,739 7 Commercial liabilities 21,670 21,371 21,355 21,355 20,412 20,691 21,436 22,207 23,337 8 Trade payables 9,566 8,802 10,005 10,005 9,844 10,527 10,061 11,013 10,815 9 Advance receipts and other liabilities 12,104 12,569 11,350 11,350 10,568 10,164 11,375 11,194 12,522 10 Payable in dollars 20,496 20,183 19,480 19,480 19,199 19,253 20,036 21,000 22,442 11 Payable in foreign currencies 1,174 1,188 1,875 1,875 1,213 1,438 1,400 1,207 895 By area or country Financial liabilities 12 Europe 13,387 18,810 21,703 21,703 17,541 18,223 16,401 15,622 16,950 13 Belgium and Luxembourg 414 175 495 495 612 778 347 369 483 14 France 1,623 2,539 1,727 1,727 2,046 1,101 1,365 999 1,679 ii Germany 889 975 1,961 1,961 1,755 1,589 1,670 1,974 2,161 16 Netherlands 606 534 552 552 633 530 474 466 479 17 Switzerland 569 634 688 688 883 1,056 948 895 1,260 18 United Kingdom 8,610 13,332 15,543 15,543 10,764 12,138 10,518 10,138 10,246 19 Canada 544 859 629 629 1,817 893 797 632 1,166 20 Latin America and Caribbean 4,053 3,359 2,034 2,034 2,065 1,950 1,904 1,783 1,876 21 Bahamas 379 1,148 101 101 135 81 79 59 78 22 Bermuda 114 0 80 80 149 138 144 147 126 23 Brazil 19 18 207 207 58 58 111 57 57 24 British West Indies 2,850 1,533 998 998 1,068 1,030 930 866 946 25 Mexico 12 17 0 0 10 3 3 12 16 26 Venezuela 6 5 5 5 5 4 3 2 2 27 5,818 5,956 8,403 8,403 8,156 8,023 6,947 5,988 6,390 28 Japan 4,750 4,887 7,314 7,314 7,182 7,141 6,308 5,436 5,980 29 Middle Eastern oil-exporting countries1 19 23 35 35 27 25 25 27 26 30 Africa 6 133 135 135 156 151 149 150 131 31 Oil-exporting countries2 0 123 123 123 122 122 122 122 122 32 All other3 33 109 50 50 40 42 39 66 57 Commercial liabilities 33 Europe 7,398 6,827 6,773 6,773 6,642 6,776 7,263 7,700 8,425 34 Belgium and Luxembourg 298 239 241 241 271 311 349 331 370 3b France 700 655 728 728 642 504 528 481 648 36 Germany 729 684 604 604 482 556 660 767 867 37 Netherlands 535 688 722 722 536 448 566 500 659 38 Switzerland 350 375 327 327 327 432 255 413 428 39 United Kingdom 2,505 2,039 2,444 2,444 2,848 2,902 3,351 3,568 3,525 40 Canada 1,002 879 1,037 1,037 1,235 1,146 1,219 1,040 959 41 Latin America and Caribbean 1,533 1,658 1,857 1,857 1,368 1,836 11,,660077 11,,774400 2,110 42 Bahamas 3 21 19 19 8 3 11 11 28 43 Bermuda 307 350 345 345 260 397 219 205 570 44 Brazil 209 214 161 161 96 107 143 98 128 45 British West Indies 33 27 23 23 29 12 5 56 10 46 Mexico 457 481 574 574 356 420 357 416 468 47 Venezuela 142 123 276 276 273 204 175 221 243 48 10,594 10,980 10,741 10,741 10,151 9,978 10,275 10,421 10,474 49 Japan 3,612 4,314 4,555 4,555 4,110 3,531 3,475 3,315 3,725 50 Middle Eastern oil-exporting countries' 1,889 1,534 1,576 1,576 1,787 1,790 1,647 1,912 1,747 51 Africa 568 453 428 428 463 481 589 619 708 52 Oil-exporting countries2 309 167 256 256 248 252 241 254 254 53 Other3 575 574 519 519 553 474 483 687 661 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1994 1995 1996 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999922 11999933 11999944 Dec. Mar. June Sept. Dec. Mar. 1 Total 45,073 49,159 57,888 57,888 52,218 58,051 53,424 52,509 55,394 2 Payable in dollars 42,281 45,161 53,805 53,805 48,425 54,138 49,696 48,711 50,995 3 Payable in foreign currencies 2,792 3,998 4,083 4,083 ' 3,793 3,913 3,728 3,798 4,399 By type 4 Financial claims 26,509 27,771 33,897 33,897 29,606 34,574 29,891 27,398 30,760 5 Deposits 17,695 15,717 18,507 18,507 17,115 22,046 17,974 15,133 17,595 6 Payable in dollars 16,872 15,182 18,026 18,026 16,458 21,351 17,393 14,654 17,044 7 Payable in foreign currencies 823 535 481 481 657 695 581 479 551 8 Other financial claims 8,814 12,054 15,390 15,390 12,491 12,528 11,917 12,265 13,165 9 Payable in dollars 7,890 10,862 14,306 14,306 11,275 11,370 10,689 10,976 11,278 10 Payable in foreign currencies 924 1,192 1,084 1,084 1,216 1,158 1,228 1,289 1,887 11 Commercial claims 18,564 21,388 23,991 23,991 22,612 23,477 23,533 25,111 24,634 12 Trade receivables 16,007 18,425 21,158 21,158 20,415 21,326 21,409 22,998 22,123 13 Advance payments and other claims 2,557 2,963 2,833 2,833 2,197 2,151 2,124 2,113 2,511 14 Payable in dollars 17,519 19,117 21,473 21,473 20,692 21,417 21,614 23,081 22,673 15 Payable in foreign currencies 1,045 2,271 2,518 2,518 1,920 2,060 1,919 2,030 1,961 By area or country Financial claims 16 Europe 9,331 7,299 7,936 7,936 7,630 7,927 7,840 7,609 8,929 17 Belgium and Luxembourg 8 134 86 86 146 155 160 193 159 18 France 764 826 800 800 808 730 753 803 1,015 19 Germany 326 526 540 540 527 356 301 436 320 20 Netherlands 515 502 429 429 606 601 522 517 486 21 Switzerland 490 530 523 523 490 514 530 498 470 22 United Kingdom 6,252 3,585 4,649 4,649 4,040 4,790 4,924 4,303 5,568 23 Canada 1,833 2,032 3,581 3,581 3,848 3,705 3,526 2,851 5,269 24 Latin America and Caribbean 13,893 16,224 19,536 19,536 16,109 21,159 15,345 14,500 13,815 25 Bahamas 778 1,336 2,424 2,424 940 2,355 1,552 1,965 1,538 26 Bermuda 40 125 27 27 37 85 35 81 77 27 Brazil 686 654 520 520 528 502 851 830 1,019 28 British West Indies 11,747 12,699 15,228 15,228 13,531 17,013 11,816 10,393 10,088 29 Mexico 445 872 723 723 583 635 487 554 461 30 Venezuela 29 161 35 35 27 27 50 32 40 31 Asia 864 1,657 1,871 1,871 1,504 1,235 2,160 1,579 1,890 32 Japan 668 892 953 953 621 471 1,404 871 1,171 33 Middle Eastern oil-exporting countries' 3 3 141 141 4 3 4 3 13 34 Africa 83 99 373 373 141 138 188 276 277 35 Oil-exporting countries 9 1 0 0 9 9 6 5 5 36 All other1 505 460 600 600 374 410 832 583 580 Commercial claims 37 Europe 8,451 9,105 9,540 9,540 8,947 9,200 8,862 9,824 9,776 38 Belgium and Luxembourg 189 184 213 213 199 218 224 231 247 39 France 1,537 1,947 1,881 1,881 1,790 1,669 1,706 1,830 1,803 40 Germany 933 1,018 1,027 1,027 977 1,023 997 1,070 1,410 41 Netherlands 552 423 311 311 324 341 338 452 442 42 Switzerland 362 432 557 557 556 612 438 520 579 43 United Kingdom 2,094 2,377 2,556 2,556 2,388 2,469 2,479 2,656 2,607 44 Canada 1,286 1,781 1,988 1,988 2,010 2,003 1,971 1,951 2,045 45 Latin America and Caribbean 3,043 3,274 4,117 4,117 4,140 4,370 4,359 4,364 4,151 46 Bahamas 28 11 9 9 17 21 26 30 30 47 Bermuda 255 182 234 234 208 210 245 272 273 48 Brazil 357 460 612 612 695 111 745 898 809 49 British West Indies 40 71 83 83 55 83 66 79 106 50 Mexico 924 990 1,243 1,243 1,106 1,109 1,026 993 870 51 Venezuela 345 293 348 348 295 319 325 285 308 52 Asia 4,866 6,014 6,982 6,982 6,200 6,516 6,826 7,312 7,100 53 Japan 1,903 2,275 2,655 2,655 1,911 2,011 1,998 1,870 2,010 54 Middle Eastern oil-exporting countries 693 704 708 708 689 707 775 974 1,024 55 Africa 554 493 454 454 468 478 544 654 667 56 Oil-exporting countries 78 72 67 67 71 60 74 87 107 57 Other3 364 721 910 910 847 910 971 1,006 895 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • November 1996 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1996 1996 Transaction, and area or country 1994 1995 Ja J n u . l — y Jan. 'eb. Mar. Apr. May June Julyp U.S corporate securities STOCKS 1 Foreign purchases 350,593 462,950 354,576 43,574 : 2,260 55,281 53,047 57,552r 43,374 49,488 2 Foreign sales 348,716 451,710 346,826 41,948 : 1,083 54,450 48,774 56,068r 42,361 52,142 3 Net purchases, or sales (—) 1,877 11,240 7,750 1,626 1,177 831 4,273 l,484r 1,013 -2,654 4 Foreign countries 1,867 11,445 7,774 1,623 1,306 877 4,129 l,479r 1,013 -2,653 5 Europe 6,714 4,912 2,548 1,954 - 1,072 1,377 1,429 —446' -308 -386 6 France -201 -1,099 -505 164 -161 661 -336 -306 -339 -188 7 Germany 2,110 -1,837 1,013 239 -37 86 174 -30 218 363 8 Netherlands 2,251 3,507 1,312 660 20 208 237 -66r 129 124 9 Switzerland -30 -2,283 1,935 639 -441 566 618 -140 78 615 10 United Kingdom 840 8,066 -1,961 -165 -223 -241 345 229r -416 -1,490 11 Canada -1,160 -1,517 843 645 518 -90 52 -394r 81 31 12 Latin America and Caribbean -2,111 5,814 2,960 -487 2,694 -318 808 1,298r 42 -1,077 13 Middle East1 -1,142 -337 -1,221 -507 -285 -33 -6 -261 -114 -15 14 Other Asia -1,234 2,503 2,577 -40 -336 -291 1,852 1,380 1,359 -1,347 15 Japan 1,162 -2,725 924 94 -131 -749 1,446 73 802 -611 16 Africa 29 2 -34 6 -62 -44 31 6 -4 33 17 Other countries 771 68 101 52 -151 276 -37 -104 -43 108 18 Nonmonetary international and regional organizations 10 -205 -24 3 -129 -46 144 5 0 -1 BONDS2 19 Foreign purchases 289,586 293,533 219,789 26,598 S2,759 39,808 24,116 34,876r 34,351 27,281 20 Foreign sales 229,665 206,951 152,360 17,726 !3,608 25,113 18,693 24,144r 25,743 17,333 21 Net purchases, or sales (—) 59,921 86,582 67,429 8,872 9,151 14,695 5,423 10,732r 8,608 9,948 22 Foreign countries 59,036 87,036 67,210 8,830 9,230 14,607 5,392 10,727r 8,593 9,831 23 Europe 37,065 70,318 42,104 5,631 8,968 6,476 3,947 7,064r 4,072 5,946 24 France 242 1,143 3,381 839 314 670 785 113 326 334 25 Germany 657 5,938 4,168 -26 1,859 467 721 891 1 255 26 Netherlands 3,322 1.463 1,276 163 365 -66 -52 371 53 442 27 Switzerland 1,055 494 457 56 -86 -38 -144 178 233 258 28 United Kingdom 31,642 57,591 28,457 3,854 6,280 4,745 2,264 4,167' 2,902 4,245 29 Canada 2,958 2,569 2,627 104 235 149 359 952 314 514 30 Latin America and Caribbean 5,442 6,141 12,482 2,096 -713 7,140 33 1,253 862 1,811 31 Middle East1 771 1,869 235 -194 -334 13 122 205r 218 205 32 Other Asia 12,153 5,659 9,963 1,272 1,161 831 1,094 1,279 3,140 1,186 33 Japan 5,486 2,250 4,408 338 336 245 135 537 1,912 905 34 Africa -7 234 218 -16 -40 37 49 107 50 31 35 Other countries 654 246 -419 -63 -47 -39 -212 -133 -63 138 36 Nonmonetary international and regional organizations 885 -454 219 42 -79 88 31 5 15 117 Foreign securities 37 Stocks, net purchases, or sales (-) -48,071 -50,291 -43,669 -6,434 -5,704 -10,345 -6,706 —3,314r -7,527 -3,639 38 Foreign purchases 386,106 345,540 262,710 33,481 37,464 36,115 37,764 43,515 36,728 37,643 39 Foreign sales 434,177 395,831 306,379 39,915 43,168 46,460 44,470 46,829r 44,255 41,282 40 Bonds, net purchases, or sales (—) -9,224 -48,545 -17,999 -4,584 -1,404 -6,038 -153 -527 -1,887 -3,406 41 Foreign purchases 848,368 889,471 600,503 84,638 95,201 93,345 81,256 82,453r 82,907 80,703 42 Foreign sales 857,592 938,016 618,502 89,222 96,605 99,383 81,409 82,980r 84,794 84,109 43 Net purchases, or sales (—), of stocks and bonds .... -57,295 -98,836 -61,668 -11,018 -7,108 -16,383 -6,859 —3,841r -9,414 -7,045 44 Foreign countries -57,815 -98,031 -61,422 -11,049 -6,983 -16,387 -6,802 —3,732' -9,361 -7,108 45 Europe -3,516 -48,125 -24,677 -4,068 -2,552 -4,508 -1,949 l,216r -8,356 -4,460 46 Canada -7,475 -7,952 -3,851 -2,668 -58 -1,865 614 -231 -472 829 47 Latin America and Caribbean -18,334 -7,634 -8,158 -3 -1,031 -2,582 -1,190 -2,136 975 -2,191 48 -24,275 -34,056 -21,927 -4,685 -2,557 -5,756 -4,094 -2,260 -1,401 -1,174 49 Japan -17,427 -25,072 -11,112 -3,427 -1,592 -3,224 -950 -921 -1,229 231 50 Africa -467 -327 -908 -96 -161 -436 -14 -32 -116 -53 51 Other countries -3,748 63 -1,901 471 -624 -1,240 -169 -289 9 -59 52 Nonmonetary international and regional organizations 520 -805 -246 31 -125 4 -57 -109 -53 63 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, 2. Includes st< te and local government securities and securities of U.S. government Saudi Arabia, and United Arab Emirates (Trucial States). agencies and cor] orations. Also includes issues of new debt securities sold abroad by U.S. corporations orga lized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Holdings and Transactions!Interest and Exchange Rates A61 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (—) during period 1996 1996 AArreeaa oorr ccoouunnttrryy 11999944 11999955 Jan.- Jan. Feb. Mar. Apr. May June Julyp July 1 Total estimated 78,801 133,991 122,614 14,018 15,451 7,025 15,751 13,896r 8,648 47,825 2 Foreign countries 78,637 133,552 124,823 13,713 16,192 6,414 17,126 13,658r 9,459 48,261 3 Europe 38,542 50,000 59,709 7,291 8,462 4,083 8,712 7,290r 5,734 18,137 4 Belgium and Luxembourg 1,098 591 538 149 -120 81 399 -153r 221 -39 5 Germany 5,709 6,136 10,108 1,385 1,829 958 1,833 1,674 1,196 1,233 6 Netherlands 1,254 1,891 -1,569 807 354 -1,597 -2,137 -757 1,067 694 7 Sweden 794 358 2,051 -45 803 372 286 342 -29 322 8 Switzerland 481 -472 1,662 76 84 65 1,329 555r -842 395 9 United Kingdom 23,365 34,778 30,249 1,177 1,644 2,270 6,070 2,987r 5,190 10,911 10 Other Europe and former U.S.S.R 5,841 6,718 16,670 3,742 3,868 1,934 932 2,642r -1,069 4,621 11 Canada 3,491 252 6,437 1,867 1,863 35 1,766 -669 -139 1,714 1? Latin America and Caribbean -10,383 48,609 15,777 -2,648 -2,931 -4,985 1,993 -1,167 1,524 23,991 13 Venezuela -319 -2 -285 -142 -93 -44 4 -39 13 16 14 Other Latin America and Caribbean -20,493 25,152 2,552 8,922 -1,896 -2,696 3,865 -2,195 -4,434 986 15 Netherlands Antilles 10,429 23,459 13,510 -11,428 -942 -2,245 -1,876 1,067 5,945 22,989 16 47,317 32,319 42,273 6,920 8,616 6,941 4,478 8,216r 2,919 4,183 17 Japan 29,793 16,863 18,182 2,619 3,069 2,443 2,382 4,565 879 2,225 18 Africa 240 1,464 919 515 -100 311 250 -48 22 -31 19 Other -570 908 -292 -232 282 29 -73 36 -601 267 20 Nonmonetary international and regional organizations 164 439 -2,209 305 -741 611 -1,375 238 -811 -436 21 International 526 9 -1,016 210 -308 647 -414 -9 -747 -395 22 Latin American regional -154 261 -1,282 -45 -254 12 -1,008 9 7 -3 MEMO 23 Foreign countries 78,637 133,552 124,823 13,713 16,192 6,414 17,126 13,658' 9,459 48,261 74 Official institutions 41,822 39,625 43,760 12,615 8,681 4,748 8,253 6,482 -6,648 9,629 25 Other foreign 36,815 93,927 81,063 1,098 7,511 1,666 8,873 7,176r 16,107 38,632 Oil-exporting countries 26 Middle East2 -38 3,075 4,200 -658 122 1,127 863 2,172r 793 -219 27 0 2 1 0 1 0 0 1 -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 foreign 3. Comprises Algeria, Gabon, Libya, and Nigeria. countries. 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS1 Percent per year, averages of daily figures Rate on Sept. 30, 1996 Rate on Sept. 30, 1996 Country Country Month effective Austria... 2.5 Apr. 1996 Germany .. . 2.5 Belgium. . 2.5 Apr. 1995 Italy 8.25 Canada. . . 4.25 Sept. 1996 Japan .5 Denmark . 3.25 Apr. 1996 Netherlands . 2.5 France2 .. 3.55 July 1996 Switzerland . 1.5 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 banks or Treasury bills for seven to ten days, 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 RATES' Percent per year, averages of daily figures 1996 TTyyppee oorr ccoouunnttrryy 11999933 11999944 11999955 Mar. Apr. May June July Aug. Sept. 1 Eurodollars 3.18 4.63 5.93 5.28 5.36 5.36 5.46 5.49 5.41 5.49 2 United Kingdom 5.88 5.45 6.63 6.02 5.97 6.03 5.80 5.69 5.72 5.75 3 Canada 5.14 5.57 7.14 5.23 5.03 4.82 4.87 4.76 4.30 4.10 4 Germany 7.17 5.25 4.43 3.25 3.22 3.19 3.29 3.29 3.20 3.02 5 Switzerland 4.79 4.03 2.94 1.68 1.68 1.99 2.53 2.52 2.21 1.82 6 Netherlands 6.73 5.09 4.30 3.09 2.83 2.61 2.81 2.99 2.90r 2.70 7 France 8.30 5.72 6.43 4.14 3.87 3.78 3.85 3.73 3.84 3.63 8 Italy 10.09 8.45 10.43 9.82 9.60 8.88 8.73 8.72 8.77 8.42 9 Belgium 8.10 5.65 4.73 3.25 3.23 3.19 3.23 3.29 3.21 3.04 10 Japan 2.96 2.24 1.20 .60 .61 .62 .57 .67 .62 .53 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

A62 International Statistics • November 1996 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar except as noted 1996 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999933 11999944 11999955 Apr. May June July Aug. Sept. 1 Australia/dollar2 67.993 73.161 74.073 78.566 79.700 79.122 78.974 78.305 79.279 2 Austria/schilling 11.639 11.409 10.076 10.580 10.782 10.755 10.576 10.435 10.610 3 Belgium/franc 34.581 33.426 29.472 30.902 31.502 31.433 30.947 30.553 31.056 4 Canada/dollar 1.2902 1.3664 1.3725 1.3592 1.3693 1.3658 1.3697 1.3722 1.3694 5 China, P.R./yuan 5.7795 8.6404 8.3700 8.3583 8.3479 8.3424 8.3409 8.3379 8.3341 6 Denmark/krone 6.4863 6.3561 5.5999 5.8050 5.9160 5.8941 5.8014 5.7327 5.8057 7 Finland/markka 5.7251 5.2340 4.3763 4.7288 4.7541 4.6710 4.5812 4.4793 4.5421 8 France/franc 5.6669 5.5459 4.9864 5.1049 5.1855 5.1787 5.0881 5.0636 5.1307 9 Germany/deutsche mark 1.6545 1.6216 1.4321 1.5048 1.5324 1.5282 1.5025 1.4826 1.5080 10 Greece/drachma 229.64 242.50 231.68 242.00 243.27 241.75 237.65 237.00 239.67 11 Hong Kong/dollar 7.7357 7.7290 7.7357 7.7345 7.7363 7.7404 7.7379 7.7345 7.7328 12 IndiaAupee 31.291 31.394 32.418 34.320 35.025 35.100 35.667 35.800 35.870 13 Ireland/pound2 146.47 149.69 160.35 156.51 156.29 158.31 160.31 161.08 160.96 14 Italy/lira 1,573.41 1,611.49 1,629.45 1,565.60 1,556.71 1,542.30 1,526.82 1,516.62 1,520.48 15 Japan/yen 111.08 102.18 93.96 107.20 106.34 108.96 109.19 107.87 109.93 16 Malaysia/ringgit 2.5738 2.6237 2.5073 2.5113 2.4936 2.4967 2.4915 2.4933 2.5009 17 Netherlands/guilder 1.8585 1.8190 1.6044 1.6805 1.7135 1.7120 1.6862 1.6633 1.6905 18 New Zealand/dollar2 54.127 59.358 65.625 68.242 68.571 67.650 69.001 68.860 69.640 19 Norway/krone 7.1009 7.0553 6.3355 6.4901 6.5748 6.5376 6.4465 6.4153 6.4613 20 Portugal/escudo 161.08 165.93 149.88 154.51 157.54 157.40 154.56 152.27 153.99 21 Singapore/dollar 1.6158 1.5275 1.4171 1.4082 1.4074 1.4090 1.4160 1.4124 1.4086 22 South Africa/rand 3.2729 3.5526 3.6284 4.2130 4.3679 4.3519 4.3963 4.5289 4.5489 23 South Korea/won 805.75 806.93 772.69 780.42 780.86 798.45 813.03 817.52 822.40 24 Spain/peseta 127.48 133.88 124.64 125.49 127.97 128.87 126.96 125.72 127.11 25 Sri Lanka/rupee 48.211 49.170 51.047 54.163 54.868 55.529 55.293 55.603 56.050 26 Sweden/krona 7.7956 7.7161 7.1406 6.7141 6.7984 6.6807 6.6394 6.6211 6.6427 27 Switzerland/franc 1.4781 1.3667 1.1812 1.2180 1.2539 1.2579 1.2320 1.2029 1.2343 28 Taiwan/dollar 26.416 26.465 26.495 27.188 27.352 27.674 27.573 27.496 27.500 29 Thailand/baht 25.333 25.161 24.921 25.290 25.289 25.354 25.355 25.289 25.407 30 United Kingdom/pound2 150.16 153.19 157.85 151.60 151.52 154.16 155.30 154.99 155.93 MEMO 31 United States/dollar3 93.18 91.32 84.25 87.46 88.28 88.16 87.25 86.54 87.46 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 3. Index of weighted-average exchange value of U.S. dollar against the currencies of ten table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, industrial countries. The weight for each of the ten countries is the 1972-76 average world see inside front cover. trade of that country divided by the average world trade of all ten countries combined. Series 2. Value in U.S. cents. revised as of August 1978 (see Federal Reserve Bulletin, vol. 64 (August 1978), p. 700). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A63 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 1996 A72 SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks March 31, 1994 November 1996 A64 June 30, 1994 November 1996 A68 September 30, 1994 November 1996 A72 December 31, 1994 November 1996 A76 March 31, 1995 November 1996 A80 June 30, 1995 November 1996 A84 September 30, 1995 November 1996 A88 December 31, 1995 November 1996 A92 March 31, 1996 November 1996 A96 June 30, 1996 November 1996 A100 Terms of lending at commercial banks November 1995 February 1996 A68 February 1996 May 1996 A68 May 1996 August 1996 A64 August 1996 November 1996 A104 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1995 February 1996 All December 31, 1995 May 1996 A72 March 31, 1996 September 1996 A64 June 30, 1996 November 1996 A108 Pro forma balance sheet and income statements for priced service operations June 30, 1995 October 1995 All September 30, 1995 January 1996 A68 March 31, 1996 July 1996 A64 June 30, 1996 October 1996 A64 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 1995 September 1996 A68 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, March 31, 1994 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToo al Total Foreign Domestic Over 100 Under 100 1 Total assets3 3,822,186 2,182,581 570,831 1,704,396 1,304,300 335,305 2 Cash and balances due from depository institutions 268,415 182,753 75,953 106,800 67,645 18,018 3 Cash items in process of collection, unposted debits, and currency and coin 75,522 2,460 73,062 36,295 F 4 Cash items in process of collection and unposted debits n.a. n.a. 56,404 23,735 T 5 Currency and coin n.a. n.a. 16,657 12,559 1 6 Balances due from depository institutions in the United States n.a. 25,122 17,099 8,023 15,928 n.a. 7 Balances due from banks in foreign countries and foreign central banks 60,463 56,285 4,178 3,421 1 8 Balances due from Federal Reserve Banks 21,646 110 21,536 12,001 • MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 5,502 12,820 7,222 10 Total securities, held-to-maturity (amortized cost) and avaiiable-for-sale (fair value) 847,057 358,509 35,591 322,918 373,399 115,149 11 U.S. Treasury securities 276,374 109,696 2,016 107,681 127,868 38,810 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 8 3,832 13,826 3,571 10,255 47,012 27,995 13 Issued by U.S. government agencies 7,182 4,338 n.a. n.a. 1,979 866 14 Issued by U.S. government-sponsored agencies 81,650 9,488 n.a. n.a. 45,033 27,129 15 Securities issued by states and political subdivisions in the United States 78,443 20,991 536 20,455 40,061 17,392 16 General obligations 57,145 14,168 n.a. n.a. 30,363 12,614 17 Revenue obligations 20,370 6,428 n.a. n.a. 9,313 4,629 18 Industrial development and similar obligations 928 394 n.a. n.a. 385 149 19 Mortgage-backed securities (MBS) 330,382 164,602 216 164,387 139,535 26,245 20 Pass-through securities 180,231 87,720 206 87,513 76,748 15,763 21 Guaranteed by GNMA 61,876 37,654 n.a. n.a. 19,782 4,441 22 Issued by FNMA and FHLMC 114,275 47,496 n.a. n.a. 55,519 11,259 23 Privately issued 4,080 2,570 0 2,570 1,447 63 24 CMOs and REMICs 150,151 76,882 9 76,873 62,787 10,482 25 Issued by FNMA and FHLMC 129,076 64,318 0 64,318 55,134 9,623 26 Privately issued and collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 5,273 2,031 n.a. n.a. 2,659 584 27 All other privately issued 15,803 10,533 n.a. n.a. 4,994 275 28 Other debt securities 58,032 41,885 27,982 13,903 12,974 3,173 29 Other domestic debt securities n a. 12,587 374 12,213 12,535 n.a. 30 Foreign debt securities n.a. 29,297 27,608 1,689 439 n.a. 31 Equity securities 14,993 7,510 1,271 6,239 5,949 1,534 32 Investments in mutual funds 3,009 699 23 676 1,476 834 33 Other equity securities with readily determinable fair value 3,372 2,133 648 1,486 1,124 115 34 All other equity securities 8,612 4,678 601 4,077 3,349 585 35 Federal funds sold and securities purchased under agreements to resell 149,292 93,406 361 93,045 40,772 15,114 36 Federal funds sold 119,816 66,785 n.a. n.a. 38,041 14,989 37 Securities purchased under agreements to resell 29,476 26,620 n.a. n.a. 2,731 125 38 Total loans- and lease-financing receivables, gross 2,158,397 1,199,498 223,423 976,075 780,331 178,567 39 LESS: Unearned income on loans 5,959 2,344 880 1,464 2,608 1,007 40 Total loans and leases (net of unearned income) 2,152,437 1,197,154 222,543 974,611 777,723 177,560 41 LESS: Allowance for loan and lease losses 52,529 33,112 n.a. n.a. 16,380 3,037 42 LESS: Allocated transfer risk reserves 153 153 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,099,755 1,163,888 n.a. n.a. 761,343 174,524 Total loans, gross, by category 44 Loans secured by real estate 917,668 412,269 23,190 389,079 405,826 99,573 45 Construction and land development F F • 29,633 27,814 6,190 46 Farmland T T T 2,054 8,380 10,825 47 One- to four-family residential properties 1 1 1 234,050 224,032 53,149 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 38,958 30,295 2,601 49 All other loans 1 1 1 195,092 193,738 50,548 5 5 1 0 M No u n lt f i a f r a m m i n ly o n ( r f e iv si e d o en r t m ial o r p e r ) o r p e e s r i t d ie e s n tial properties T 1 • 1 •1 11 1 0 2 , , 8 5 3 0 6 6 13 1 0 4 , , 7 8 1 8 6 3 2 2 7 , , 2 12 8 5 4 52 Loans to depository institutions 49,477 41,771 23,843 17,928 7,478 228 53 Commercial banks in the United States n.a. 15,421 1,066 14,355 6,890 n.a. 54 Other depository institutions in the United States n.a. 489 41 447 244 n.a. 55 Banks in foreign countries n.a. 25,861 22,735 3,126 345 n.a. 56 Loans to finance agricultural production and other loans to farmers 35,862 5,400 283 5,083 12,096 18,366 57 Commercial and industrial loans 546,589 386,493 98,543 287,950 130,914 29,182 58 U.S. addressees (domicile) n.a. 306,466 21,246 285,220 130,424 n.a. 59 Non-U.S. addressees (domicile) n.a. 80,028 77,297 2,730 489 n.a. 60 Acceptances of other banks 1,879 1,512 1,171 341 239 128 61 U.S. banks n.a. 175 24 152 n.a. n.a. n.a. 1,337 1,148 189 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes 420,095 193,750 22,302 171,448 197,913 28,432 64 Credit cards and related plans 150,989 78,620 n.a. n.a. 70,803 1,566 65 Other (includes single payment and installment) 269,106 115,131 n.a. n.a. 127,110 26,866 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 20,700 10,432 283 10,148 9,252 1,017 128,444 117,917 50,495 67,423 9,456 1,070 68 Loans to foreign governments and official institutions n.a. 16,016 14,833 1,183 28 n.a. n.a. 101,901 35,661 66,240 9,428 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 22,855 2,080 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 43,386 7,349 n.a. 72 Lease-financing receivables 37,682 29,953 3,279 26,675 7,158 572 73 Assets held in trading accounts 221,540 219,505 1,954 1 74 Premises and fixed assets (including capitalized leases) 55,668 29,867 T T 20,220 5,581 75 Other real estate owned 15,542 9,751 1 n.a. 4,766 1,024 76 Investments in unconsolidated subsidiaries and associated companies 3,614 3,274 n.a. | 315 25 77 Customers' liability on acceptances outstanding 13,679 13,221 1 1 442 16 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 43,608 n.a. n.a. 7 8 9 0 O In t t h a e n r g i a b s l s e e t a s s sets 12 1 9 8 , , 3 2 3 9 3 2 9 1 7 0 , , 5 8 1 8 9 9 iI n n . . a a . . 2 7 6 , , 0 4 1 2 8 5 5, 3 3 8 8 5 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A65 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with foreign offices1 Bank o s f f w ic i e t s h o d n o l m y2 e stic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 3,822,186 2,182,581 n a. n.a. 1,304,300 335,305 82 Total liabilities 3,523,050 2,028,356 570,821 1,550,181 1,192,392 302,302 83 Total deposits 2,740,266 1,402,668 355,791 1,046,878 1,043,264 294,333 84 Individuals, partnerships, and corporations 2,437,562 1,194,851 218,058 976,793 973,195 269,517 85 U.S. government n.a. n a. n.a. 2,932 1,972 379 8ft States and political subdivisions in the United States n.a. n.a. n a. 30,346 47,636 20,184 87 Commercial banks in the United States 4: ,597 39,393 22 882 16,512 8,184 1,020 88 Other depository institutions in the United States n.a. n.a. n a. 3,110 4,490 1,306 89 Banks in foreign countries n.a. 8* ,161 82,275 5,886 702 n.a. 90 Foreign governments and official institutions n. a. 30,403 29,259 1,144 47 n.a. 91 Certified and official checks 19,828 10,896 743 10,154 7,039 1,892 92 234,278 38,963 2,575 n.a. n.a. 37 93 Total transaction accounts 402,000 327,123 89,858 94 Individuals, partnerships, and corporations 350,823 292,730 79,352 95 U.S. government 2,719 1,562 274 96 States and political subdivisions in the United States 14,210 18,205 7,716 97 Commercial banks in the United States 15,385 5,793 442 98 Other depository institutions in the United States 2,362 1,206 148 99 Banks in foreign countries 5,601 577 n.a. 100 Foreign governments and official institutions 747 9 n.a. 101 Certified and official checks 10,154 7,039 1,892 102 Residual6 n.a. n.a. 34 103 Demand deposits (included in total transaction accounts) 290,965 182,310 42,183 104 Individuals, partnerships, and corporations 245,582 159,291 37,628 105 U.S. government 2,464 1,526 257 106 States and political subdivisions in the United States 8,677 6,914 1,795 107 Commercial banks in the United States 15,384 5,763 438 108 Other depository institutions in the United States n.a. n.a. n a. 2,361 1,189 145 109 Banks in foreign countries 5,597 577 n.a. 110 Foreign governments and official institutions 746 9 n.a. 111 Certified and official checks 10,154 7,039 1,892 112 Residual4 n.a. n.a. 28 113 Total nontransaction accounts 644,877 716,141 204,475 114 Individuals, partnerships, and corporations 625,970 680,464 190,164 115 U.S. government 213 409 104 116 States and political subdivisions in the United States 16,136 29,430 12,468 117 Commercial banks in the United States 1,126 2,391 578 118 U.S. branches and agencies of foreign banks 69 411 n.a. 119 Other commercial banks in the United States 1,058 1,981 n.a. 120 Other depository institutions in the United States 748 3,283 1,159 121 Banks in foreign countries 285 124 n.a. 122 Foreign branches of other U.S. banks 4 4 n.a. 123 Other banks in foreign countries 281 121 n.a. 124 Foreign governments and official institutions 398 38 n.a. 125 n.a. n.a. 2 126 Federal funds purchased and securities sold under agreements to repurchase 287,892 204,633 650 203,983 80,026 3,232 127 Federal funds purchased 177,353 129,601 n.a. n.a. 46,418 1,334 128 Securities sold under agreements to repurchase 110,539 75,032 n.a. n.a. 33,608 1,898 129 Demand notes issued to the U.S. Treasury 35,225 28,922 0 28,922 6,043 259 130 Trading liabilities 124,076 123,931 n.a. n.a. 145 1 131 Other borrowed money 179,456 135,169 48,520 86,648 42,416 1,872 132 Banks' liability on acceptances executed and outstanding 13,728 13,269 3,072 10,198 442 16 133 Notes and debentures subordinated to deposits 37,043 34,496 n.a. n.a. 2,512 36 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n a. n a. 49,038 n.a. n.a. 135 All other liabilities 105,364 85,268 n a. n.a. 17,544 2,553 299,134 154,225 n a. n.a. 111,907 33,002 MEMO 137 Holdings of commercial paper included in total loans, gross 466 148 318 792 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 60,487 67,486 16,202 139 Total brokered deposits 21,256 18,000 706 140 Fully insured brokered deposits 15,432 15,576 652 141 Issued in denominations of less than $100,000 11,,115522 33,,667711 590 142 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. n.a. n.a. 14,280 11,905 62 143 Money market deposit accounts (MMDAs) 242,559 183,103 36,237 144 Other savings deposits (excludes MMDAs) 137,024 144,546 39,744 145 Total time deposits of less than $100,000 182,190 296,974 102,780 146 Time certificates of deposit of $100,000 or more 70,946 88,736 24,886 147 Open-account time deposits of $100,000 or more 12,158 2,781 827 148 All negotiable order of withdrawal (NOW) accounts 110,169 142,296 46,434 149 Number of banks 10,825 203 n.a. 2,933 7,689 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, March 31, 1994 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 3,344,001 2,490,413 1,906,968 583,445 853,588 2 Cash and balances due from depository institutions 192,462 152,011 119,955 32,056 40,451 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 488,548 266,801 209,320 57,482 221,746 4 U.S. Treasury securities 166,678 93,451 71,666 21,784 73,228 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 75,006 35,939 28,287 7,653 39,067 6 Securities issued by states and political subdivisions in the United States 57,453 28,485 21,720 6,765 28,968 7 Mortgage-backed securities (MBS) 165,780 97,105 78,934 18,171 68,675 8 Pass-through securities 92,511 55,768 44,668 11,100 36,743 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 91,001 54,730 43,700 11,029 36,271 10 Privately issued 1,510 1,038 968 71 472 11 CMOs and REMICs 73,269 41,337 34,266 7,071 31,932 12 Issued by FNMA and FHLMC 64,757 36,505 30,290 6,215 28,252 13 Privately issued 8,512 4,832 3,976 856 3,680 14 Other debt securities 16,147 7,996 5,801 2,195 8,151 15 Equity securities 7,483 3,825 2,913 913 3,658 16 Investments in mutual funds 2,310 882 740 142 1,428 17 Other equity securities with readily determinable fair values 1,239 361 175 186 878 18 All other equity securities 3,934 2,582 1,998 584 1,352 19 Federal funds sold and securities purchased under agreements to resell 148,931 119,300 91,093 28,207 29,631 20 Total loans- and lease-financing receivables, gross 1,934,974 1,424,149 1,131,662 292,487 510,824 21 LESS: Unearned income on loans 5,079 3,107 2,347 761 1,972 22 Total loans and leases (net of unearned income) 1,929,894 1,421,042 1,129,315 291,727 508,852 Total loans, gross, by category 23 Loans secured by real estate 894,478 627,943 503,237 124,706 266,534 24 Construction and land development 63,637 44,554 35,259 9,295 19,084 25 Farmland 21,258 9,553 7,780 1,773 11,706 26 One- to four-family residential properties 511,231 371,483 298,510 72,974 139,748 27 Revolving, open-end loans, extended under lines of credit 71,854 54,939 43,705 11,235 16,914 28 All other loans 439,378 316,544 254,805 61,739 122,834 29 Multifamily (five or more) residential properties 29,674 20,041 16,240 3,802 9,632 30 Nonfarm nonresidential properties 268,677 182,312 145,449 36,863 86,365 31 Loans to depository institutions 25,634 21,957 17,343 4,613 3,678 32 Loans to finance agricultural production and other loans to farmers 35,545 17,923 14,895 3,028 17,622 33 Commercial and industrial loans 448,046 354,584 282,693 71,891 93,461 34 Acceptances of other banks 708 415 336 79 293 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 397,793 284,965 230,999 53,966 112,828 36 Obligations (other than securities) of states and political subdivisions in the United States 20,417 16,095 12,073 4,022 4,322 37 All other loans 77,949 71,567 47,046 24,521 6,382 38 Lease-financing receivables 34,404 28,701 23,041 5,659 5,703 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 43,608 39,979 17,689 22,290 3,629 40 Remaining assets 540,557 491,280 339,597 151,683 49,278 41 Total liabilities 3,044,875 2,270,551 1,740,287 530,264 774,324 42 Total deposits 2,384,475 1,712,556 1,339,697 372,860 671,918 43 Individuals, partnerships, and corporations 2,219,504 1,596,542 1,251,548 344,994 622,963 44 U.S. government 5,282 4,304 3,592 712 979 45 States and political subdivisions in the United States 98,166 63,192 48,754 14,439 34,973 46 Commercial banks in the United States 25,715 22,140 17,085 5,055 3,576 47 Other depository institutions in the United States 8,906 5,072 3,860 1,212 3,834 48 Certified and official checks 19,085 14,542 10,608 3,934 4,542 49 Banks in foreign countries, foreign governments, and foreign official institutions 7,816 6,764 4,250 2,514 1,051 50 Total transaction accounts 818,982 614,933 476,417 138,516 204,049 51 Individuals, partnerships, and corporations 722,906 539,763 419,194 120,569 183,143 52 U.S. government 4,556 3,728 3,094 634 828 53 States and political subdivisions in the United States 40,131 27,395 21,400 5,995 12,735 54 Commercial banks in the United States 21,620 20,363 16,091 4,272 1,257 55 Other depository institutions in the United States 3,716 2,962 2,170 793 754 56 Certified and official checks 19,085 14,542 10,608 3,934 4,542 57 Banks in foreign countries, foreign governments, and foreign official institutions 6,968 6,179 3,861 2,318 789 58 Demand deposits (included in total transaction accounts) 515,458 403,089 306,765 96,324 112,368 59 Individuals, partnerships, and corporations 442,501 342,116 260,930 81,186 100,385 60 U.S. government 4,248 3,446 2,826 620 802 61 States and political subdivisions in the United States 17,386 13,501 10,293 3,208 3,885 62 Commercial banks in the United States 21,585 20,358 16,086 4,272 1,227 63 Other depository institutions in the United States 3,695 2,952 2,161 792 742 64 Certified and official checks 19,085 14,542 10,608 3,934 4,542 65 Banks in foreign countries, foreign governments, and foreign official institutions 6,958 6,173 3,861 2,312 785 66 Total nontransaction accounts 1,565,493 1,097,623 863,280 234,344 467,870 67 Individuals, partnerships, and corporations 1,496,599 1,056,779 832,354 224,425 439,820 68 U.S. government 727 576 498 78 150 69 States and political subdivisions in the United States 58,035 35,797 27,354 8,443 22,238 70 Commercial banks in the United States 4,095 1,776 994 782 2,319 71 Other depository institutions in the United States 5,190 2,110 1,690 419 3,080 72 Banks in foreign countries, foreign governments, and foreign official institutions 847 585 390 196 262 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A67 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 287,242 243,651 176,748 66,904 43,590 74 Demand notes issued to the U.S. Treasury 35,225 32,414 21,670 10,744 2,811 75 Other borrowed money 130,936 100,423 74,765 25,657 30,514 76 Banks liability on acceptances executed and outstanding 10,656 10,119 7,431 2,689 537 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 49,038 37,897 31,900 5,997 11,142 78 Remaining liabilities 147,304 133,491 88,077 45,414 13,812 MEMO 79 Trading assets at large banks5 76,958 75,792 48,647 27,145 1,166 80 U.S. Treasury securities (domestic offices) 19,311 19,083 12,543 6,540 228 81 U.S. government agency corporation obligations 2,608 2,539 2,369 170 69 82 Securities issued by states and political subdivisions in the United States 885 840 384 456 45 83 Mortgage-backed securities 5,673 5,419 2,982 2,438 254 84 Other debt securities 549 515 261 254 33 85 Certificates of deposit 1,721 1,691 1,343 348 30 86 Commercial paper 249 124 124 0 125 87 Bankers acceptances 1,841 1,718 1,260 459 122 88 Other trading assets 77,,229977 7,267 5,047 22,,222200 30 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 36,825 36,595 22,334 14,261 230 90 Total individual retirement (IRA) and Keogh plan accounts 144,176 104,486 84,092 20,394 39,690 91 Total brokered deposits 39,962 27,210 21,668 5,542 12,752 92 Fully insured brokered deposits 31,660 21,311 17,753 3,558 10,349 93 Issued in denominations of less than $100,000 55,,441133 33,,559999 33,,223388 361 11,,881144 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 26,247 17,712 14,515 3,196 8,535 95 Money market deposit accounts (MMDAs) 461,899 352,047 278,170 73,877 109,852 96 Other savings deposits 321,314 227,159 167,570 59,589 94,155 97 Total time deposits of less than $100,000 581,945 386,682 313,262 73,420 195,263 98 Time certificates of deposit of $100,000 or more 184,569 119,264 97,715 21,549 65,304 99 Open-account time deposits of $100,000 or more 15,766 12,472 6,563 5,909 3,294 100 All negotiable order of withdrawal (NOW) accounts 298,899 209,598 167,810 41,788 89,301 101 Number of banks 10,825 4,219 3,251 968 6,606 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 1994 Millions of dollars except as noted Banks with foreign offices1 Bank o s f f w ic i e t s h o d n o l m y2 e stic IItteemm TToo al Total Foreign Domestic Over 100 Under 100 1 Total assets3 3,870,788 2,235,116 590,215 1,742,636 1,301,394 334,279 2 Cash and balances due from depository institutions 273,079 191,811 80,292 111,518 64,101 17+,16 7 3 Cash items in process of collection, unposted debits, and currency and coin • 79,930 2,812 77,117 37,082 4 Cash items in process of collection and unposted debits n.a. n.a. 58,326 23,491 T 5 Currency and coin n.a. n.a. 18,791 13,591 1 6 Balances due from depository institutions in the United States n.a. 25,970 16,980 8,990 15,042 n.a. 7 8 B B a a l l a a n n c c e e s s d d u u e e f f r r o o m m F ba e n d k e s ra l i n R f e o s r e e r i v g e n B co a u n n k t s r ies and foreign central banks 6 21 4 , , 4 5 0 0 8 4 60,3 1 9 0 3 7 22 4 11 , ,, 1 33 1 00 1 00 10 1 , , 4 4 9 8 6 1 i1 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 6,529 12,398 6,705 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 840,438 359,378 35,778 323,600 367,579 113,482 11 U.S. Treasury securities 266,728 106,362 1,841 104,522 122,078 38,288 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 8 ;,632 13,496 55 13,441 47,017 28,119 13 Issued by U.S. government agencies 3,945 1,154 n.a. n.a. 1,897 894 14 Issued by U.S. government-sponsored agencies 8< ,686 12,342 n.a. n.a. 45,121 27,224 15 Securities issued by states and political subdivisions in the United States 77,873 20,952 532 20,420 39,582 17,339 16 General obligations 56,268 13,583 n.a. n.a. 30,093 12,592 17 Revenue obligations 20,662 6,939 n.a. n.a. 9,119 4,604 18 Industrial development and similar obligations 943 430 n.a. n.a. 370 143 19 Mortgage-backed securities (MBS) 333,032 167,392 2,982 164,410 140,384 25,255 20 Pass-through securities 187,061 92,338 2,936 89,402 79,514 15,210 21 Guaranteed by GNMA 69,470 44,525 n.a. n.a. 20,627 4,318 22 Issued by FNMA and FHLMC 113,651 45,195 n.a. n.a. 57,607 10,849 23 Privately issued 3,940 2,618 0 2,618 1,279 43 24 CMOs and REMICs 145,971 75,054 46 75,008 60,871 10,046 25 Issued by FNMA and FHLMC 124,984 62,267 37 6622,,222299 53,388 9,330 26 Privately issued and collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 4,788 1,936 n.a. n.a. 2,356 497 27 All other privately issued 16,198 10,852 n.a. n.a. 5,127 219 28 Other debt securities 59,441 43,541 29,109 14,432 12,803 3,097 29 Other domestic debt securities n.a. 13,236 345 12,891 12,339 n.a. 30 Foreign debt securities n.a. 30,305 28,764 1,541 464 n.a. 31 Equity securities 14,733 7,634 1,259 6,375 5,714 1,384 32 Investments in mutual funds 2,337 586 22 565 1,111 640 33 Other equity securities with readily determinable fair value 3,224 2,117 696 1,422 996 110 34 All other equity securities 9,173 4,930 541 4,389 3,607 635 35 Federal funds sold and securities purchased under agreements to resell 139,416 95,773 342 95,432 32,883 10,760 36 Federal funds sold 117,748 77,006 n.a. n.a. 30,093 10,650 37 Securities purchased under agreements to resell 21,668 18,768 n.a. n.a. 2,790 110 38 Total loans- and lease-financing receivables, gross 2,215,476 1,237,639 229,008 1,008,630 793,506 184,331 39 LESS: Unearned income on loans 5,896 2,439 926 1,513 2,450 1,006 40 Total loans and leases (net of unearned income) 2,209,581 1,235,199 228,083 1,007,117 791,056 183,325 41 LESS: Allowance for loan and lease losses 52,105 33,038 n.a. n.a. 16,024 3,044 42 LESS: Allocated transfer risk reserves 152 152 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,157,323 1,202,010 n.a. n.a. 775,032 180,281 Total loans, gross, by category 938,377 425,258 23,989 401,269 411,278 101,841 45 Construction and land development \ • 28,262 27,377 6,541 T T 2,145 8,599 11,178 1 1 244,510 228,178 54,043 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 40,288 30,487 2,687 49 All other loans 1 1 204,222 197,690 51,356 50 Multifamily (five or more) residential properties 1 1 12,981 15,168 2,350 51 Nonfarm nonresidential properties ? • T 113,370 131,956 27,729 52 Loans to depository institutions 54,594 47,074 25,180 21,894 7,272 248 53 Commercial banks in the United States n.a. 19,025 1,135 17,890 6,689 n.a. 54 Other depository institutions in the United States n.a. 515 34 482 215 n.a. n.a. 27,534 24,012 3,522 368 n.a. 56 Loans to finance agricultural production and other loans to farmers 39,594 6,018 229 5,603 13,295 20,281 57 Commercial and industrial loans 562,226 401,099 103,316 297,783 131,308 29,819 58 U.S. addressees (domicile) n a. 317,058 22,071 294,987 130,843 n.a. 59 Non-U.S. addressees (domicile) n a. 84,041 81,245 2,796 465 n.a. 2,222 1,892 1,475 417 223 107 61 U.S. banks n.a. 173 3 170 n.a. n.a. n.a. 1,718 1,472 247 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes 436,701 202,693 23,274 179,420 204,711 29,297 64 Credit cards and related plans 159,038 82,579 n.a. n.a. 74,747 1,712 65 Other (includes single payment and installment) 277,663 120,114 n.a. n.a. 129,964 27,585 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 20,582 10,604 229 10,375 8,936 1,043 121,837 111,795 47,623 64,172 8,957 1,085 68 Loans to foreign governments and official institutions n .a. 15,673 14,750 923 25 n.a. n.a. 96,122 32,873 63,249 8,932 n.a. n.a. n.a. n.a. 20,613 1,926 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 42,636 7,005 n.a. 39,342 31,206 3+,50 9 27,697 7,526 611 73 Assets held in trading accounts 228,039 226,532 1,440 1 74 Premises and fixed assets (including capitalized leases) 56,515 30,638 T T 20,227 5,650 75 Other real estate owned 13,808 8,769 n.a. 4,101 938 76 Investments in unconsolidated subsidiaries and associated companies 1 3 3 , , 5 4 9 7 2 6 1 3 3 , , 2 0 7 7 4 2 n. 1 a. •1 3 2 8 9 4 2 2 2 6 0 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 1 38,439 n.a. n.a. 20,140 11,977 1 n.a. 7,750 413 124,961 91,882 T n.a. 27,605 5,475 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A69 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic offices Banks with foreign offices' only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 3,870,788 2,235,116 n.a. n.a. 1,301,394 334,279 82 Total liabilities 3,567,466 2,076,846 590,196 1,584385 1,189,321 301,299 83 Total deposits 2,748,816 1,430,153 377,305 1,052,847 1,027,049 291,614 84 Individuals, partnerships, and corporations 2,441,208 1,213,516 231,104 982,412 960,439 267,253 85 n. a. n.a. n.a. 2,970 1,724 390 86 States and political subdivisions in the United States n. a. n.a. n.a. 30,459 46,206 19,779 87 Commercial banks in the United States 52,858 44,607 28,061 16,546 7,330 921 88 Other depository institutions in the United States n. a. n.a. n a. 2,583 4,040 1,310 89 n.a. 8£ ,287 82,111 6,176 213 n.a. 90 Foreign governments and official institutions n.a. 32,343 31,203 1,140 56 n.a. 91 20,838 11,883 1,322 10,561 7,041 1,914 92 233,911 39,517 3,505 n.a. n.a. 48 93 404,228 320,683 88,613 94 Individuals, partnerships, and corporations 352,153 287,397 78,075 95 2,729 1,377 288 96 States and political subdivisions in the United States 14,998 18,454 7,754 97 Commercial banks in the United States 15,266 5,147 397 98 Other depository institutions in the United States 1,862 1,077 139 99 Banks in foreign countries 5,932 179 n.a. 100 Foreign governments and official institutions 728 11 n.a. 101 Certified and official checks 10,561 7,041 1,914 102 n.a. n.a. 46 103 Demand deposits (included in total transaction accounts) 293,412 180,423 42,388 104 Individuals, partnerships, and corporations 247,700 158,808 37,837 105 2,432 1,333 270 106 States and political subdivisions in the United States 8,941 6,867 1,793 107 15,265 5,119 397 108 Other depository institutions in the United States n.a. n.a. n a. 1,859 1,066 135 109 Banks in foreign countries 5,929 179 n.a. 110 Foreign governments and official institutions 724 11 n.a. 111 Certified and official checks 10,561 7,041 1,914 112 n.a. n.a. 42 113 Total nontransaction accounts 648,619 706,366 203,001 114 Individuals, partnerships, and corporations 630,259 673,042 189,178 115 241 347 101 116 States and political subdivisions in the United States 15,461 27,751 12,025 117 Commercial banks in the United States 1,280 2,184 524 118 U.S. branches and agencies of foreign banks 108 374 n.a. 119 Other commercial banks in the United States 1,172 1,809 n.a. 120 Other depository institutions in the United States 721 2,963 1,171 121 244 34 n.a. 122 Foreign branches of other U.S. banks 4 0 n.a. 123 Other banks in foreign countries 240 34 n.a. 124 Foreign governments and official institutions 412 45 n.a. 125 n.a. n.a. 1 126 Federal funds purchased and securities sold under agreements to repurchase 292,508 200,696 513 200,183 87,292 4,519 127 198,739 141,966 n.a. n.a. 54,247 2,525 128 Securities sold under agreements to repurchase 93,769 58,730 n.a. n.a. 33,045 1,994 129 Demand notes issued to the U.S. Treasury 38,494 31,959 0 31,959 6,283 251 no 151,767 151,596 n.a. n.a. 171 0 131 190,112 138,244 36,468 101,777 49,353 2,515 132 Banks' liability on acceptances executed and outstanding 13,524 13,120 3,121 9,999 384 20 133 Notes and debentures subordinated to deposits 37,246 34,745 n.a. n.a. 2,465 36 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 59,297 n.a. n.a. 135 94,999 76,333 n.a. n.a. 16,322 2,344 136 303,320 158,269 n.a. n.a. 112,072 32,979 MEMO 137 Holdings of commercial paper included in total loans, gross 436 155 282 494 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 60,579 66,502 16,185 139 21,942 17,136 813 140 Fully insured brokered deposits 15,678 14,955 764 141 Issued in denominations of less than $100,000 11,,221144 33,,666655 680 142 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. n.a. n.a. 14,464 11,290 84 143 Money market deposit accounts (MMDAs) 236,683 176,528 35,167 144 Other savings deposits (excludes MMDAs) 138,446 142,649 39,342 145 Total time deposits of less than $100,000 189,271 297,384 102,534 146 Time certificates of deposit of $100,000 or more 72,043 87,582 25,035 147 Open-account time deposits of $100,000 or more 12,176 2,224 923 148 All negotiable order of withdrawal (NOW) accounts 109,450 138,259 45,057 149 10,703 203 n.a. 2,896 7,604 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 1994 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 3,378,308 2,512,895 1,910,938 601,958 865,413 2 Cash and balances due from depository institutions 192,786 153,113 113,891 39,222 39,674 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 481,060 260,481 204,109 56,373 220,579 4 U.S. Treasury securities 160,366 88,088 67,035 21,054 72,278 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 75,136 35,695 28,103 7,592 39,441 6 Securities issued by states and political subdivisions in the United States 56,921 28,266 21,583 6,682 28,655 7 Mortgage-backed securities (MBS) 165,640 96,635 78,639 17,996 69,005 8 Pass-through securities 94,723 56,369 45,107 11,262 38,355 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 93,401 55,347 44,174 11,173 38,054 10 Privately issued 1,322 1,021 933 89 301 11 CMOs and REMICs 70,916 40,266 33,532 6,734 30,650 12 Issued by FNMA and FHLMC 62,718 35,605 29,621 5,984 27,112 13 Privately issued 8,199 4,661 3,911 750 3,538 14 Other debt securities 15,899 7,948 5,791 2,158 7,951 15 Equity securities 7,099 3,849 2,958 891 3,250 16 Investments in mutual funds 1,750 718 594 124 1,032 17 Other equity securities with readily determinable fair values 1,106 316 159 157 791 18 All other equity securities 4,242 2,815 2,205 610 1,427 19 Federal funds sold and securities purchased under agreements to resell 139,074 115,503 84,790 30,713 23,571 20 Total loans- and lease-financing receivables, gross 1,986,468 1,459,025 1,152,474 306,552 527,443 21 LESS: Unearned income on loans 4,970 2,997 2,322 674 1,973 22 Total loans and leases (net of unearned income) 1,981,498 1,456,028 1,150,151 305,877 525,470 Total loans, gross, by category 23 Loans secured by real estate 914,387 640,378 513,824 126,555 274,009 24 Construction and land development 62,180 42,534 33,071 9,463 19,646 25 Farmland 21,922 9,815 7,993 1,822 12,107 26 One- to four-family residential properties 526,731 382,526 308,108 74,419 144,205 27 Revolving, open-end loans, extended under lines of credit 73,463 56,168 44,743 11,426 17,295 28 All other loans 453,268 326,358 263,365 62,993 126,910 29 Multifamily (five or more) residential properties 30,500 20,804 16,972 3,832 9,696 30 Nonfarm nonresidential properties 273,055 184,700 147,681 37,019 88,355 31 Loans to depository institutions 29,415 25,581 20,464 5,117 3,834 32 Loans to finance agricultural production and other loans to farmers 39,179 19,345 16,009 3,336 19,835 33 Commercial and industrial loans 458,910 363,482 281,991 81,491 95,428 34 Acceptances of other banks 748 427 327 100 320 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 413,428 296,140 240,788 55,352 117,287 36 Obligations (other than securities) of states and political subdivisions in the United States 20,353 15,970 12,083 3,887 4,384 37 All other loans 74,214 67,811 42,914 24,897 6,403 38 Lease-financing receivables 35,834 29,891 24,074 5,817 5,943 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 38,439 35,224 18,490 16,734 3,215 40 Remaining assets 545,451 492,546 339,506 153,039 52,905 41 Total liabilities 3,075,005 2,289,755 1,742,980 546,775 785,250 42 Total deposits 2,371,511 1,699,552 1,323,350 376,202 671,959 43 Individuals, partnerships, and corporations 2,210,105 1,585,453 1,237,307 348,146 624,652 44 U.S. government 5,084 4,114 3,414 700 970 45 States and political subdivisions in the United States 96,444 62,432 48,159 14,273 34,012 46 Commercial banks in the United States 24,798 21,310 16,085 5,225 3,487 47 Other depository institutions in the United States 7,933 4,320 3,405 915 3,613 48 Certified and official checks 19,516 14,933 10,918 4,015 4,583 49 Banks in foreign countries, foreign governments, and foreign official institutions 7,632 6,990 4,062 • 2,928 642 50 Total transaction accounts 813,525 610,033 468,194 141,839 203,492 51 Individuals, partnerships, and corporations 717,626 534,820 411,642 123,177 182,806 52 U.S. government 4,394 3,568 2,941 627 827 53 States and political subdivisions in the United States 41,206 28,270 22,053 6,217 12,936 54 Commercial banks in the United States 20,810 19,541 15,072 4,469 1,269 55 Other depository institutions in the United States 3,077 2,390 1,808 581 687 56 Certified and official checks 19,516 14,933 10,918 4,015 4,583 57 Banks in foreign countries, foreign governments, and foreign official institutions 6,895 6,512 3,759 2,753 383 58 Demand deposits (included in total transaction accounts) 516,223 402,648 301,849 100,800 113,575 59 Individuals, partnerships, and corporations 444,345 342,364 257,267 85,097 101,981 60 U.S. government 4,035 3,244 2,623 621 791 61 States and political subdivisions in the United States 17,601 13,680 10,411 3,268 3,922 62 Commercial banks in the United States 20,780 19,540 15,071 4,469 1,241 63 Other depository institutions in the United States 3,060 2,383 1,802 581 677 64 Certified and official checks 19,516 14,933 10,918 4,015 4,583 65 Banks in foreign countries, foreign governments, and foreign official institutions 6,885 6,505 3,756 2,750 380 66 Total nontransaction accounts 1,557,986 1,089,519 855,156 234,363 468,467 67 Individuals, partnerships, and corporations 1,492,479 1,050,633 825,665 224,968 441,846 68 U.S. government 689 546 473 73 143 69 States and political subdivisions in the United States 55,238 34,162 26,106 8,056 21,076 70 Commercial banks in the United States 3,988 1,769 1,013 757 2,218 71 Other depository institutions in the United States 4,856 1,930 1,597 333 2,926 72 Banks in foreign countries, foreign governments, and foreign official institutions 737 478 303 175 259 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September3 0, 1994 Millions of dollars except as noted Members IItteemm TToottaall NNoonn-mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 291,995 241,507 173,628 67,880 50,487 74 Demand notes issued to the U.S. Treasury 38,494 35,347 22,725 12,622 3,147 75 Other borrowed money 153,645 120,337 87,264 33,073 33,308 76 Banks liability on acceptances executed and outstanding 10,403 9,866 6,891 2,975 537 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 59,297 47,162 38,164 8,998 12,134 78 Remaining liabilities 149,661 135,983 90,957 45,025 13,679 MEMO 79 Trading assets at large banks5 81,892 80,917 49,222 31,696 975 80 U.S. Treasury securities (domestic offices) 15,425 15,213 8,450 6,763 212 81 U.S. government agency corporation obligations 1,272 1,229 1,127 102 44 82 Securities issued by states and political subdivisions in the United States 1,081 1,047 664 383 35 83 Mortgage-backed securities 6,178 5,932 3,266 2,666 247 84 Other debt securities 569 518 221 297 51 85 Certificates of deposit 1,005 976 885 91 30 86 Commercial paper 242 119 119 0 123 87 Bankers acceptances 1,707 1,633 1,113 520 74 88 Other trading assets 7,054 77,,003300 44,,771133 2,317 24 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 47,357 47,222 28,664 18,558 136 90 Total individual retirement (IRA) and Keogh plan accounts 143,266 103,376 83,270 20,106 39,890 91 Total brokered deposits 39,890 26,840 17,563 9,276 13,051 92 Fully insured brokered deposits 31,396 20,970 14,028 6,942 10,426 93 Issued in denominations of less than $100,000 55,,555599 33,,663355 33,,331111 323 11,,992244 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 25,837 17,335 10,717 6,619 8,502 95 Money market deposit accounts (MMDAs) 448,377 341,113 269,568 71,545 107,264 96 Other savings deposits 320,437 226,507 168,171 58,336 93,930 97 Total time deposits of less than $100,000 589,189 391,112 318,072 73,040 198,077 98 Time certificates of deposit of $100,000 or more 184,660 118,584 92,915 25,669 66,076 99 Open-account time deposits of $100,000 or more 15,323 12,203 6,430 5,772 3,120 100 All negotiable order of withdrawal (NOW) accounts 292,766 205,180 164,444 40,736 87,585 101 Number of banks 10,703 4,155 3,188 967 6,548 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $ 1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToo al Total Foreign Domestic Over 100 Under 100 1 Total assets3 3,901,222 2,264,616 595,961 1,778,080 1,302,480 334,125 2 Cash and balances due from depository institutions 276,406 194,015 82,289 111,726 65,514 16,877 4 5 3 Ca C C sh a u s r i h r t e e n m it c e s y m i s n a n i p d n r o c p c o r e o in s c s e s o s f o c f o l c l o e l c l t e i c o t n i , o n u n a p n o d s t u e n d p d o e st b e i d ts , d a e n b d it s c urrency and coin • 8 n n 3 . . a a , . . 2 98 n n 1 . . , a a 9 . . 1 4 6 8 1 3 1 7 , , , 8 3 5 5 8 2 6 4 8 2 3 1 5 7 1 , , , 9 4 4 0 0 9 5 0 5 T 1 6 Balances due from depository institutions in the United States n a. 24,787 16,855 7,932 15,120 n.a. 7 Balances due from banks in foreign countries and foreign central banks 67,829 63,420 4,409 1,957 1 8 Balances due from Federal Reserve Banks 1188,,110011 101 1188,,000000 1111,,003366 1 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 6,103 12,783 6,939 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 828,772 364,103 36,973 327,130 354,357 110,312 11 U.S. Treasury securities 253,705 103,263 2,344 100,918 113,632 36,810 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 92,222 16,081 120 15,961 48,209 27,932 13 Issued by U.S. government agencies 4,254 1,276 n.a. n.a. 2,052 926 14 Issued by U.S. government-sponsored agencies 87,969 14,805 n.a. n.a. 46,157 27,007 15 Securities issued by states and political subdivisions in the United States 77,528 21,853 516 21,337 38,636 17,039 16 General obligations 56,579 14,723 n.a. n.a. 29,437 12,419 17 Revenue obligations 20,061 6,753 n.a. n.a. 8,830 4,478 18 Industrial development and similar obligations 889 377 n.a. n.a. 369 143 19 Mortgage-backed securities (MBS) 328,970 169,032 2,703 166,328 135,724 24,214 20 Pass-through securities 185,657 93,983 2,665 91,318 77,075 14,599 21 Guaranteed by GNMA 70,846 46,063 n.a. n.a. 20,509 4,274 22 Issued by FNMA and FHLMC 111,767 45,677 n.a. n.a. 55,820 10,270 23 Privately issued 3,045 2,243 0 2,243 747 55 24 CMOs and REMICs 143,313 75,049 38 75,011 58,649 9,615 25 Issued by FNMA and FHLMC 121,648 60,852 12 60,839 51,775 9,021 26 Privately issued and collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 3,815 1,292 n.a. n.a. 2,107 417 27 All other privately issued 17,850 12,905 n.a. n.a. 4,767 177 28 Other debt securities 61,391 45,905 29,953 15,952 12,558 2,927 29 Other domestic debt securities n.a. 14,846 328 14,517 12,079 n.a. 30 Foreign debt securities n.a. 31,059 29,625 1,435 479 n.a. 31 Equity securities 14,955 7,970 1,335 6,634 5,597 1,389 32 Investments in mutual funds 2,045 515 28 487 936 593 33 Other equity securities with readily determinable fair value 3,509 2,362 768 1,593 1,032 116 34 All other equity securities 9,402 5,093 539 4,554 3,630 679 35 Federal funds sold and securities purchased under agreements to resell 137,898 92,333 486 91,846 35,643 9,923 36 Federal funds sold 117,361 74,295 n.a. n.a. 33,278 9,788 37 Securities purchased under agreements to resell 20,538 18,038 n.a. n.a. 2,365 135 38 Total loans- and lease-financing receivables, gross 2,275,179 1,284,771 230,902 1,053,869 802,541 187,867 39 LESS: Unearned income on loans 5,924 2,486 935 1,551 2,424 1,013 40 Total loans and leases (net of unearned income) 2,269,256 1,282,285 229,967 1,052,318 800,117 186,853 41 LESS: Allowance for loan and lease losses 52,107 33,385 n.a. n.a. 15,682 3,040 42 LESS: Allocated transfer risk reserves 150 149 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,216,999 1,248,751 n.a. n.a. 784,435 183,813 Total loans, gross, by category 44 Loans secured by real estate 965,188 444,542 25,152 419,389 416,852 103,793 45 Construction and land development F 28,055 28,557 7,067 4 4 7 6 O Fa n r e m - l t a o n d f our-family residential properties T 1 T 1 259 2 , , 0 3 4 0 6 9 232 8 , , 7 7 8 6 0 2 5 1 4 1 , , 9 3 2 3 2 9 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 42,227 29,967 2,699 49 All other loans 1 1 1 216,819 202,813 52,223 50 Multifamily (five or more) residential properties 1 1 13,312 14,893 2,411 51 Nonfarm nonresidential properties R 1 T 116,668 131,860 28,055 52 Loans to depository institutions 58,667 51,149 25,626 25,523 7,269 248 53 Commercial banks in the United States n.a. 23,051 969 22,081 6,773 n.a. 54 Other depository institutions in the United States n.a. 326 28 298 186 n.a. 55 Banks in foreign countries n.a. 27,772 24,629 3,143 310 n.a. 56 Loans to finance agricultural production and other loans to farmers 40,967 5,993 229 5,614 13,883 21,091 57 Commercial and industrial loans 572,826 416,622 104,171 312,451 126,432 29,772 58 U.S. addressees (domicile) n.a. 331,416 21,908 309,508 126,008 n.a. 59 Non-U.S. addressees (domicile) n.a. 85,206 82,262 2,943 424 n.a. 60 Acceptances of other banks 1,901 1,599 1,120 479 201 101 61 U.S. banks n .a. 256 12 244 n.a. n.a. 62 Foreign banks n.a. 1,343 1,108 235 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 458,949 216,000 24,539 191,462 212,882 30,067 64 Credit cards and related plans 170,437 88,366 n.a. n.a. 80,065 2,006 65 Other (includes single payment and installment) 28 8,512 127,634 n.a. n.a. 132,817 28,061 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 20,367 10,745 229 10,516 8,538 1,084 114,563 104,563 45,993 58,570 8,931 1,070 68 Loans to foreign governments and official institutions n.a. 14,465 13,378 1,087 32 n.a. n.a. 90,098 32,615 57,483 8,899 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 17,273 1,928 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 40,210 6,971 n.a. 72 Lease-financing receivables 41,754 33,559 3,694 29,865 7,553 642 73 Assets held in trading accounts 207,248 205,964 n.a. 1,229 1 74 Premises and fixed assets (including capitalized leases) 57,494 31,615 I n.a. 20,196 5,683 75 Other real estate owned 12,495 7,917 n.a. 3,716 862 76 Investments in unconsolidated subsidiaries and associated companies 3,729 3,448 1 n.a. 259 22 77 Customers' liability on acceptances outstanding 13,723 13,346 n.a. n.a. 353 25 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 1 33,232 n.a. n.a. 79 Intangible assets 22,394 13,597 1 n.a. 8,367 430 80 Other assets 124,064 89,528 i n.a. 28,413 6,123 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic offices Banks with foreign offices' only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 3,901,222 2,264,616 n.a. n.a. 1,302,480 334,125 82 Total liabilities 3,591,175 2,100,146 595,950 1,613,620 1,189,990 301,039 2,776,158 1,469,567 403,152 1,066,414 1,016,594 289,997 84 Individuals, partnerships, and corporations 2,456,308 1,238,240 243,298 994,942 952,139 265,929 85 n.a. n.a. n.a. 3,743 2,064 397 86 States and political subdivisions in the United States n.a. n a. n.a. 31,438 44,394 19,595 87 Commercial banks in the United States 56,352 4i ,517 32,057 16,460 6,985 849 88 Other depository institutions in the United States n.a. n.a. n.a. 2,769 3,750 1,227 89 Banks in foreign countries n.a. 94,162 87,728 6,433 199 n.a. 90 Foreign governments and official institutions n.a. 36,561 35,406 1,155 49 n.a. 91 Certified and official checks 19,526 10,548 1,075 9,473 7,013 1,965 92 243,972 41,538 3,588 n.a. n.a. 36 93 Total transaction accounts 406,482 314,057 87,984 94 Individuals, partnerships, and corporations 354,684 281,976 77,735 95 U.S. government 3,505 1,675 296 96 States and political subdivisions in the United States 14,459 16,937 7,478 97 Commercial banks in the United States 15,288 5,247 341 98 Other depository institutions in the United States 2,142 1,033 135 99 6,178 171 n.a. 100 Foreign governments and official institutions 753 5 n.a. 101 Certified and official checks 9,473 7,013 1,965 102 n.a. n.a. 35 103 Demand deposits (included in total transaction accounts) 292,321 177,749 42,968 104 Individuals, partnerships, and corporations 247,165 156,497 38,428 105 U.S. government 3,182 1,624 283 106 States and political subdivisions in the United States 8,147 6,209 1,789 107 Commercial banks in the United States 15,287 5,207 340 108 Other depository institutions in the United States n a. n.a. n.a. 2,141 1,025 133 109 Banks in foreign countries 6,176 171 n.a. 110 Foreign governments and official institutions 749 5 n.a. 111 Certified and official checks 9,473 7,013 1,965 112 Residual4 n.a. n.a. 29 113 Total nontransaction accounts 659,932 702,537 202,013 114 Individuals, partnerships, and corporations 640,258 670,163 188,193 115 U.S. government 238 389 101 116 States and political subdivisions in the United States 16,979 27,457 12,117 117 Commercial banks in the United States 1,172 1,739 508 118 U.S. branches and agencies of foreign banks 69 208 n.a. 119 Other commercial banks in the United States 1,103 1,531 n.a. 120 Other depository institutions in the United States 626 2,717 1,092 121 Banks in foreign countries 256 29 n.a. 122 Foreign branches of other U.S. banks 4 0 n.a. 123 Other banks in foreign countries 252 29 n.a. 124 Foreign governments and official institutions 402 44 n.a. 125 n.a. n.a. 2 126 Federal funds purchased and securities sold under agreements to repurchase 303,239 209,311 667 208,644 88,808 5,121 127 Federal funds purchased 214,816 156,791 n.a. n.a. 55,025 3,000 128 Securities sold under agreements to repurchase 8 S,424 52,520 n a. n.a. 33,783 2,121 129 Demand notes issued to the U.S. Treasury 24,904 20,728 0 20,728 3,974 203 133,070 132,897 n.a. n.a. 171 2 131 Other borrowed money 207,971 144,742 46,200 98,542 60,122 3,107 132 Banks' liability on acceptances executed and outstanding 13,765 13,387 2,965 10,422 353 25 133 Notes and debentures subordinated to deposits 38,429 36,069 n.a. n.a. 2,325 35 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n a. 76,192 n.a. n.a. 135 All other liabilities 93,639 73,446 n.a. n.a. 17,644 2,548 136 Total equity capital 310,045 164,470 n.a. n.a. 112,489 33,086 MEMO 137 Holdings of commercial paper included in total loans, gross 391 145 245 465 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 62,135 65,968 16,030 22,224 19,063 928 140 Fully insured brokered deposits 16,820 17,228 890 141 Issued in denominations of less than $100,000 11,,331100 55,,550022 784 14? Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. n.a. n.a. 15,509 11,726 110077 143 Money market deposit accounts (MMDAs) 235,444 170,514 34,200 144 Other savings deposits (excludes MMDAs) 139,519 137,520 38,016 145 Total time deposits of less than $100,000 197,774 302,026 103,040 146 Time certificates of deposit of $100,000 or more 76,076 90,268 25,769 147 Open-account time deposits of $100,000 or more 11,120 2,210 998899 148 All negotiable order of withdrawal (NOW) accounts 112,889 134,040 4433,,888899 10,577 205 n.a. 2,871 7,501 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 3,414,686 2,542,737 1,928,319 614,418 871,948 2 Cash and balances due from depository institutions 194,117 153,949 117,764 36,185 40,168 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 464,669 246,318 195,558 50,760 218,351 4 U.S. Treasury securities 150,442 81,214 63,215 17,999 69,228 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 76,141 35,969 27,826 8,143 40,173 6 Securities issued by states and political subdivisions in the United States 55,675 27,252 21,243 6,009 28,423 7 Mortgage-backed securities (MBS) 159,938 90,412 74,574 15,839 69,526 8 Pass-through securities 91,674 52,446 42,957 9,490 39,228 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 90,872 52,039 42,609 9,431 38,833 10 Privately issued 802 407 348 59 395 11 CMOs and REMICs 68,264 37,966 31,617 6,349 30,298 12 Issued by FNMA and FHLMC 60,796 33,878 28,035 5,843 26,918 13 Privately issued 7,468 4,088 3,582 506 3,380 14 Other debt securities 15,485 7,506 5,629 1,877 7,979 15 Equity securities 6,986 3,964 3,071 893 3,022 16 Investments in mutual funds 1,529 671 569 103 858 17 Other equity securities with readily determinable fair values 1,147 320 164 157 827 18 All other equity securities 4,309 2,972 2,338 633 1,337 19 Federal funds sold and securities purchased under agreements to resell 137,412 115,855 82,098 33,757 21,557 20 Total loans- and lease-financing receivables, gross 2,044,277 1,506,149 1,185,482 320,667 538,128 21 LESS: Unearned income on loans 4,989 3,006 2,261 744 1,983 22 Total loans and leases (net of unearned income) 2,039,288 1,503,143 1,183,220 319,923 536,145 Total loans, gross, by category 23 Loans secured by real estate 940,035 659,278 524,759 134,519 280,757 24 Construction and land development 63,680 43,226 33,501 9,725 20,454 25 Farmland 22,409 10,106 8,241 1,864 12,304 26 One- to four-family residential properties 546,748 397,924 317,527 80,397 148,824 27 Revolving, open-end loans, extended under lines of credit 74,893 57,433 45,223 12,210 17,460 28 All other loans 471,855 340,491 272,304 68,187 131,364 29 Multifamily (five or more) residential properties 30,615 21,039 16,827 4,211 9,577 30 Nonfarm nonresidential properties 276,583 186,983 148,663 38,321 89,599 31 Loans to depository institutions 33,040 29,741 25,307 4,434 3,300 32 Loans to finance agricultural production and other loans to farmers 40,588 19,932 16,402 3,531 20,655 33 Commercial and industrial loans 468,655 374,333 287,766 86,566 94,323 34 Acceptances of other banks 780 413 327 86 367 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 434,410 312,235 252,663 59,573 122,175 36 Obligations (other than securities) of states and political subdivisions in the United States 20,138 15,862 11,951 3,911 4,276 37 All other loans 68,570 62,373 40,661 21,712 6,197 38 Lease-financing receivables 38,060 31,981 25,646 6,336 6,079 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 33,232 30,812 19,084 11,728 2,420 40 Remaining assets 545,967 492,659 330,595 162,064 53,308 41 Total liabilities 3,104,649 2,313,758 1,756,548 557,209 790,891 42 Total deposits 2,373,006 1,701,185 1,317,716 383,468 671,821 43 Individuals, partnerships, and corporations 2,213,011 1,588,183 1,234,486 353,697 624,828 44 U.S. government 6,204 5,116 4,166 951 1,088 45 States and political subdivisions in the United States 95,427 61,292 46,177 15,115 34,135 46 Commercial banks in the United States 24,294 21,072 15,603 5,468 3,223 47 Other depository institutions in the United States 7,746 4,432 3,387 1,045 3,313 48 Certified and official checks 18,451 13,831 10,041 3,791 4,620 49 Banks in foreign countries, foreign governments, and foreign official institutions 7,873 7,258 3,856 3,402 614 50 Total transaction accounts 808,524 605,990 463,761 142,229 202,534 51 Individuals, partnerships, and corporations 714,396 532,368 409,744 122,624 182,027 52 U.S. government 5,475 4,526 3,651 876 949 53 States and political subdivisions in the United States 38,874 26,291 20,080 6,212 12,583 54 Commercial banks in the United States 20,875 19,575 14,756 4,819 1,301 55 Other depository institutions in the United States 3,311 2,635 1,933 701 676 56 Certified and official checks 18,451 13,831 10,041 3,791 4,620 57 Banks in foreign countries, foreign governments, and foreign official institutions 7,141 6,762 3,557 3,206 378 58 Demand deposits (included in total transaction accounts) 513,038 399,326 299,212 100,114 113,712 59 Individuals, partnerships, and corporations 442,090 340,026 256,273 83,753 102,065 60 U.S. government 5,088 4,178 3,314 863 911 61 States and political subdivisions in the United States 16,145 12,338 9,351 2,987 3,807 62 Commercial banks in the United States 20,835 19,571 14,752 4,819 1,264 63 Other depository institutions in the United States 3,299 2,629 1,928 701 669 64 Certified and official checks 18,451 13,831 10,041 3,791 4,620 65 Banks in foreign countries, foreign governments, and foreign official institutions 7,129 6,753 3,553 3,200 376 66 Total nontransaction accounts 1,564,482 1,095,195 853,955 241,240 469,287 67 Individuals, partnerships, and corporations 1,498,615 1,055,814 824,741 231,073 442,801 68 728 590 515 75 139 69 States and political subdivisions in the United States 56,553 35,001 26,097 8,903 21,552 70 Commercial banks in the United States 3,419 1,497 848 649 1,922 71 Other depository institutions in the United States 4,435 1,798 1,454 344 2,637 72 Banks in foreign countries, foreign governments, and foreign official institutions 732 496 300 196 236 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Members IItteemm TToottaall mmee NN mm oo bb nn ee -- rrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 302,572 251,236 183,245 67,991 51,336 74 Demand notes issued to the U.S. Treasury 24,904 22,644 13,440 9,205 2,260 75 Other borrowed money 161,771 123,303 98,097 25,206 38,469 76 Banks liability on acceptances executed and outstanding 10,800 10,279 7,430 2,850 521 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 76,192 63,755 49,434 14,321 12,438 78 Remaining liabilities 155,403 141,356 87,187 54,169 14,047 MEMO 79 Trading assets at large banks5 69,028 68,229 40,687 27,542 799 80 U.S. Treasury securities (domestic offices) 14,536 14,371 8,585 5,787 165 81 U.S. government agency corporation obligations 1,567 1,532 1,417 115 35 82 Securities issued by states and political subdivisions in the United States 944 901 542 359 43 83 Mortgage-backed securities 5,505 5,436 2,556 2,880 70 84 Other debt securities 250 195 59 136 55 85 Certificates of deposit 917 892 855 37 25 86 Commercial paper 432 305 305 0 128 87 Bankers acceptances 1,385 1,318 906 412 67 88 Other trading assets 6,635 66,,660066 44,,558855 2,021 29 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 36,857 36,673 20,879 15,794 184 90 Total individual retirement (IRA) and Keogh plan accounts 144,133 104,176 83,254 20,922 39,957 91 Total brokered deposits 42,214 28,694 19,936 8,758 13,520 92 Fully insured brokered deposits 34,938 23,796 16,737 7,059 11,142 93 Issued in denominations of less than $100,000 77,,559966 55,,662255 55,,335566 269 11,,997722 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 27,342 18,171 11,381 6,790 9,171 95 Money market deposit accounts (MMDAs) 440,158 335,734 263,694 72,040 104,424 96 Other savings deposits 315,054 223,078 165,082 57,995 91,976 97 Total time deposits of less than $100,000 602,839 401,749 323,891 77,858 201,090 98 Time certificates of deposit of $100,000 or more 192,112 123,513 95,649 27,865 68,599 99 Open-account time deposits of $100,000 or more 14,319 11,121 5,639 5,481 3,198 100 All negotiable order of withdrawal (NOW) accounts 290,818 204,370 162,559 41,811 86,448 101 Number of banks 10,577 4,109 3,143 966 6,468 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $ 1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, December 31, 1994 Millions of dollars except as noted Banks with foreign offices1 Bank o s f f w ic i e t s h o d n o l m y2 e stic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets3 3,984,644 2,309,656 616,180 1,809,439 1,338,783 336,204 2 Cash and balances due from depository institutions 302,312 210,664 87, 338 122,826 73,859 17,789 3 Cash items in process of collection, unposted debits, and currency and coin - 93,177 2, 380 91,096 42,497 4 Cash items in process of collection and unposted debits n.a. n.<i . 69,225 28,526 T 5 Currency and coin n.a. n.<l . 21,872 13,971 1 6 Balances due from depository institutions in the United States n.a. 28,958 19, 582 9,277 17,213 n.a. 7 Balances due from banks in foreign countries and foreign central banks 70,791 65,967 4,825 2,216 • 1 8 Balances due from Federal Reserve Banks 1177,,773388 110 17,628 11,933 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.<i . 6,644 14,595 7,492 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 813,778 359,585 36,106 323,480 345,429 108,764 11 U.S. Treasury securities 238,701 97,043 1,602 95,441 105,749 35,909 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 97,253 18,536 55 18,480 49,856 28,861 13 Issued by U.S. government agencies 4,689 1,461 n.a. n.a. 2,254 975 14 Issued by U.S. government-sponsored agencies 92,564 17,075 n.a. n.a. 47,602 27,887 15 Securities issued by states and political subdivisions in the United States 76,720 21,837 549 21,287 38,136 16,747 16 General obligations 55,878 14,398 n.a. n.a. 29,219 12,261 17 Revenue obligations 19,829 6,895 n.a. n.a. 8,579 4,356 18 Industrial development and similar obligations 1,013 544 n.a. n.a. 338 130 19 Mortgage-backed securities (MBS) 324,350 167,702 2,533 165,169 133,477 23,171 20 Pass-through securities 185,865 95,419 2,517 92,902 76,431 14,015 21 Guaranteed by GNMA 69,942 44,349 n. i. n.a. 21,449 4,144 22 Issued by FNMA and FHLMC 112,987 48,853 n. i. n.a. 54,308 9,827 23 Privately issued 2,936 2,217 0 2,217 674 44 24 CMOs and REMICs 138,485 72,284 17 72,267 57,046 9,156 25 Issued by FNMA and FHLMC 116,722 5588,,112288 9 58,119 49,972 8,622 26 Privately issued and collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 3,067 1,093 n.a. n.a. 1,606 369 27 All other privately issued 18,696 13,062 n.a. n.a. 5,468 165 28 Other debt securities 61,278 46,210 29,928 16,282 12,313 2,755 29 Other domestic debt securities n.a. 15,209 313 14,895 11,821 n.a. 30 Foreign debt securities n.a. 31,001 29,615 1,386 492 n.a. 31 Equity securities 15,476 8,258 1,437 6,821 5,898 1,321 32 Investments in mutual funds 2,026 563 38 525 973 490 33 Other equity securities with readily determinable fair value 3,617 2,559 $51 1,708 955 104 34 All other equity securities 9,833 5,135 548 4,587 3,970 727 35 Federal funds sold and securities purchased under agreements to resell 148,562 101,394 420 100,973 36,005 11,163 36 Federal funds sold 128,970 83,930 n.a. n.a. 33,998 11,043 37 Securities purchased under agreements to resell 19,592 17,464 n. i. n.a. 2,008 121 38 Total loans- and lease-financing receivables, gross 2,350,166 1,323,019 233,801 1,089,217 838,090 189,057 39 LESS: Unearned income on loans 5,878 2,498 941 1,557 2,376 1,004 40 Total loans and leases (net of unearned income) 2,344,288 1,320,521 232,861 1,087,660 835,714 188,053 41 LESS: Allowance for loan and lease losses 51,740 33,030 n.a. n.a. 15,697 3,013 42 LESS: Allocated transfer risk reserves 150 150 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,292,398 1,287,341 n. a. n.a. 820,017 185,040 Total loans, gross, by category 44 Loans secured by real estate 990,456 458,757 26,441 432,317 426,421 105,278 45 Construction and land development K 27,309 29,523 7,191 46 Farmland T 2,307 8,957 11,303 47 One- to four-family residential properties l 269,842 239,144 55,747 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 43,054 30,025 2,726 49 All other loans 1 226,789 209,119 53,021 50 Multifamily (five or more) residential properties 1 13,994 15,427 2,468 51 Nonfarm nonresidential properties r T 1 118,864 133,370 28,569 52 Loans to depository institutions 6 8,147 60,832 25,580 35,252 6,979 336 53 Commercial banks in the United States n.a. 31,173 996 30,177 6,316 n.a. 54 Other depository institutions in the United States n.a. 1,576 7 1,568 197 n.a. 55 Banks in foreign countries n.a. 28,083 24,576 3,507 466 n.a. 56 Loans to finance agricultural production and other loans to farmers 39,014 6,096 245 5,756 13,349 19,569 57 Commercial and industrial loans 586,125 424,544 105,293 319,252 131,250 30,331 58 U.S. addressees (domicile) n.a. 337,344 21,148 316,196 130,809 n.a. 59 Non-U.S. addressees (domicile) n.a. 87,200 84,145 3,055 441 n.a. 60 Acceptances of other banks 1,735 1,373 911 463 235 126 61 U.S. banks n.a. 370 15 356 n.a. n.a. 62 Foreign banks n.a. 1,003 896 107 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 484,162 219,344 25,447 193,897 234,237 30,582 64 Credit cards and related plans 187,749 87,559 n.a. n.a. 97,802 2,388 65 Other (includes single payment and installment) 296,413 131,784 n.a. n.a. 136,435 28,194 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 19,625 10,430 245 10,185 8,142 1,052 67 All other loans 116,055 105,626 45,761 59,865 9,321 1,108 68 Loans to foreign governments and official institutions n.a. 13,224 12,565 659 37 n.a. 69 Other loans n.a. 92,402 33,196 59,206 9,284 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 17,016 2,003 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 42,190 7,281 n.a. 72 Lease-financing receivables 44,847 36,016 3,785 32,231 8,156 675 73 Assets held in trading accounts 193,885 192,523 • • 1,306 1 74 Premises and fixed assets (including capitalized leases) 58,397 32,065 T 20,581 5,752 75 Other real estate owned 10,121 6,178 n.a. 3,150 792 76 Investments in unconsolidated subsidiaries and associated companies 3,712 3,357 n a. 1 333 23 77 Customers' liability on acceptances outstanding 13,433 13,021 1 388 24 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 26,889 n.a. n.a. 79 Intangible assets 23,873 14,881 n.a. 8,526 466 80 Other assets 124,174 88,648 n.a. 29,189 6,337 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic offices Banks with foreign offices' only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 3,984,644 2,309,656 n.a. n.a. 1,338,783 336,204 3,674,458 2,143,730 616,137 1,643,555 1,227,119 303,609 2,854,205 1,530,834 431,818 1,099,016 1,030,881 292,490 84 Individuals, partnerships, and corporations 2,513,334 1,282,258 260,235 1,022,024 963,739 267,338 85 U.S. government n.a. n. a. n. a. 5,222 2,935 592 86 States and political subdivisions in the United States n a. n.a. n.a. 34,315 45,244 20,340 87 Commercial banks in the United States 67,272 59,379 41,990 17,389 7,062 831 88 Other depository institutions in the United States n.a. n a. n a. 2,678 3,436 1,159 89 Banks in foreign countries n.a. 96,019 89,741 6,278 218 n.a. 90 Foreign governments and official institutions n.a. 36,817 35,572 1,245 51 n.a. 91 Certified and official checks 20,823 10,457 593 9,864 8,198 2,169 92 252,775 45,904 3,688 n.a. n.a. 61 93 Total transaction accounts 428,621 327,709 91,374 94 Individuals, partnerships, and corporations 372,341 292,874 80,222 95 4,987 2,605 469 96 States and political subdivisions in the United States 16,386 17,714 7,989 97 Commercial banks in the United States 16,164 5,073 337 98 Other depository institutions in the United States 2,069 1,040 134 99 Banks in foreign countries 6,020 196 n.a. 100 Foreign governments and official institutions 791 7 n.a. 101 Certified and official checks 9,864 8,198 2,169 102 Residual4 n.a. n.a. 55 103 Demand deposits (included in total transaction accounts) 309,251 187,515 45,534 104 Individuals, partnerships, and corporations 260,537 163,989 40,544 105 U.S. government 4,669 2,562 452 106 States and political subdivisions in the United States 9,143 6,459 1,850 107 Commercial banks in the United States 16,163 5,073 337 108 Other depository institutions in the United States n.a. n a. n a. 2,069 1,031 132 109 Banks in foreign countries 6,019 196 n.a. 110 Foreign governments and official institutions 787 7 n.a. 111 Certified and official checks 9,864 8,198 2,169 112 Residual4 n.a. n.a. 50 113 Total nontransaction accounts 670,395 703,172 201,115 114 Individuals, partnerships, and coiporations 649,683 670,864 187,116 115 235 329 123 116 States and political subdivisions in the United States 17,929 27,529 12,351 117 Commercial banks in the United States 1,225 1,989 494 118 U.S. branches and agencies of foreign banks 72 407 n.a. 119 Other commercial banks in the United States 1,153 1,581 n.a. 120 Other depository institutions in the United States 609 2,395 1,025 121 Banks in foreign countries 259 21 n.a. 122 Foreign branches of other U.S. banks 4 0 n.a. 123 Other banks in foreign countries 255 21 n.a. 124 Foreign governments and official institutions 455 44 n.a. 125 Residual n.a. n.a. 6 126 Federal funds purchased and securities sold under agreements to repurchase 309,393 209,290 578 208,712 95,196 4,906 127 Federal funds purchased 221,386 155,971 n.a. n.a. 62,805 2,609 128 Securities sold under agreements to repurchase 8 3,007 53,319 n a. n.a. 32,391 2,297 129 Demand notes issued to the U.S. Treasury 15,681 12,696 0 12,696 2,791 194 130 Trading liabilities 118,764 118,688 n a. n.a. 76 0 131 Other borrowed money 232,431 151,563 42,820 108,743 77,625 3,244 132 Banks' liability on acceptances executed and outstanding 13,494 13,082 3,537 9,546 388 24 133 Notes and debentures subordinated to deposits 40,580 37,538 n.a. n.a. 3,006 36 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n a. n a. 89,073 n.a. n.a. 135 8 },911 70,040 n.a. n.a. 17,156 2,716 136 310,184 165,926 n.a. n.a. 111,663 32,594 MEMO 137 Holdings of commercial paper included in total loans, gross 491 139 352 428 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 62,395 65,797 15,958 139 25,853 20,741 977 140 Fully insured brokered deposits 20,926 19,154 943 141 Issued in denominations of less than $100,000 22,,229933 55,,224455 807 142 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. n.a. n.a. 18,633 13,909 136 143 Money market deposit accounts (MMDAs) 231,067 164,337 33,180 144 Other savings deposits (excludes MMDAs) 137,092 132,810 36,453 145 Total time deposits of less than $100,000 208,149 310,010 103,922 146 Time certificates of deposit of $100,000 or more 81,771 93,886 26,576 147 Open-account time deposits of $100,000 or more 12,316 2,130 984 148 All negotiable order of withdrawal (NOW) accounts 117,329 138,149 44,644 149 10,433 205 n.a. 2,827 7,401 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, December 31, 1994 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets 3,484,426 2,603,596 1,983,843 619,754 880,830 2 Cash and balances due from depository institutions 214,474 171,459 131,759 39,700 43,015 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 454,193 240,708 189,143 51,565 213,485 4 U.S. Treasury securities 141,658 74,824 57,013 17,811 66,834 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 78,717 37,097 28,718 8,379 41.620 6 Securities issued by states and political subdivisions in the United States 54,883 26,900 20,721 6,179 27,983 7 Mortgage-backed securities (MBS) 156,648 90,559 74,270 16,289 66,089 Si Pass-through securities 90,447 53,320 43,484 9,835 37,127 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 89,728 52,933 43,150 9,783 36,795 10 Privately issued 719 387 335 52 332 11 CMOs and REMICs 66,201 37,239 30,785 6,454 28,962 12 Issued by FNMA and FHLMC 58,594 32,986 27,121 5,864 25,608 13 Privately issued 7,608 4,253 3,664 589 3,354 14 Other debt securities 15,068 7,285 5,330 1,955 7,784 15 Equity securities 7,218 4,043 3,090 953 3,175 16 Investments in mutual funds 1,463 581 493 88 881 17 Other equity securities with readily determinable fair values 1,058 322 167 156 736 18 All other equity securities 4,697 3,140 2,431 709 1,558 19 Federal funds sold and securities purchased under agreements to resell 148,141 124,058 88,702 35,356 24,084 20 Total loans- and lease-financing receivables, gross 2,116,365 1,569,531 1,233,852 335,679 546,833 21 LESS: Unearned income on loans 4,937 2,941 2,249 692 1,996 22 Total loans and leases (net of unearned income) 2,111,427 1,566,590 1,231,603 334,987 544,837 Total loans, gross, by category 23 Loans secured by real estate 964,016 678,591 538,520 140,071 285,425 24 Construction and land development 64,023 43,203 33,571 9,632 20,820 25 Farmland 22,567 10,231 8,310 1,921 12,336 26 One- to four-family residential properties 564,734 413,027 328,044 84,983 151,707 27 Revolving, open-end loans, extended under lines of credit 75,805 58,538 46,044 12,494 17,267 28 All other loans 488,929 354,489 282,000 72,489 134,440 29 Multifamily (five or more) residential properties 31,889 21,660 17,081 4,579 10,229 30 Nonfarm nonresidential properties 280,803 190,470 151,513 38,957 90,333 31 Loans to depository institutions 42,567 39,301 34,665 4,636 3,266 32 Loans to finance agricultural production and other loans to farmers 38,674 19,488 16,030 3,458 19,186 33 Commercial and industrial loans 480,833 384,780 294,815 89,966 96,053 34 Acceptances of other banks 824 431 343 88 393 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 458,716 332,302 268,814 63,488 126,414 36 Obligations (other than securities) of states and political subdivisions in the United States 19,380 15,355 11,526 3,829 4,025 37 All other loans 70,294 64,232 41,483 22,749 6,061 38 Lease-financing receivables 41,062 35,050 27,656 7,394 6,012 39 Net due from own foreign olfices, Edge Act and agreement subsidiaries, and IBFs 26,889 24,467 17,240 7,227 2,423 40 Remaining assets 529,302 476,316 325,397 150,919 52,986 41 Total liabilities 3,174,283 2,373,587 1,811,081 562,506 800,696 42 Total deposits 2,422,387 1,746,857 1,350,659 396,198 675,530 43 Individuals, partnerships, and corporations 2,253,100 1,626,377 1,260,515 365,862 626,723 44 U.S. government 8,749 7,132 5,731 1,401 1,617 45 States and political subdivisions in the United States 99,899 65,183 49,361 15,822 34,716 46 Commercial banks in the United States 25,282 21,700 16,640 5,060 3,583 47 Other depository institutions in the United States 7,273 4,150 3,172 978 3,123 48 Certified and official checks 20,230 15,130 11,019 4,111 5,100 49 Banks in foreign countries, foreign governments, and foreign official institutions 7,853 7,185 4,220 2,965 668 50 Total transaction accounts 847,704 638,567 491,148 147,419 209,137 51 Individuals, partnerships, and corporations 745,437 558,571 430,807 127,764 186,866 52 U.S. government 8,062 6,603 5,265 1,338 1,459 53 States and political subdivisions in the United States 42,089 28,904 22,545 6,358 13,185 54 Commercial banks in the United States 21,574 20,218 15,773 4,446 1,356 55 Other depository institutions in the United States 3,244 2,512 1,874 639 731 56 Certified and official checks 20,230 15,130 11,019 4,111 5,100 57 Banks in foreign countries, foreign governments, and foreign official institutions 7,069 6,628 3,866 2,762 441 58 Demand deposits (included in total transaction accounts) 542,300 423,252 319,372 103,880 119,048 59 Individuals, partnerships, and corporations 465,070 359,034 271,581 87,453 106,036 60 U.S. government 7,684 6,260 4,937 1,324 1,423 61 States and political subdivisions in the United States 17,453 13,485 10,334 3,151 3,968 62. Commercial banks in the United States 21,572 20,217 15,771 4,446 1,355 63 Other depository institutions in the United States 3,232 2,507 1,868 639 725 64 Certified and official checks 20,230 15,130 11,019 4,111 5,100 65 Banks in foreign countries, foreign governments, and foreign official institutions 7,059 6,619 3,862 2,757 440 66 Total nontransaction accounts 1,574,683 1,108,289 859,510 248,779 466,393 67 Individuals, partnerships, and corporations 1,507,663 1,067,806 829,708 238,098 439,857 68 687 529 467 62 158 69 States and political subdivisions in the United States 57,810 36,279 26,815 9,464 21,531 70 Commercial banks in the United States 3,709 1,481 868 614 2,227 71 Other depository institutions in the United States 4,029 1,637 1,298 339 2,392 72 Banks in foreign countries, foreign governments, and foreign official institutions 785 557 354 202 228 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A79 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 308,814 253,695 183,928 69,767 55,119 74 Demand notes issued to the U.S. Treasury 15,681 14,055 9,434 4,620 1,626 75 Other borrowed money 189,611 147,432 111,421 36,011 42,179 76 Banks liability on acceptances executed and outstanding 9,957 9,377 6,944 2,432 581 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 89,073 77,139 61,958 15,181 11,934 78 Remaining liabilities 138,760 125,033 86,737 38,296 13,727 MEMO 79 Trading assets at large banks5 66,894 66,014 38,972 27,042 880 80 U.S. Treasury securities (domestic offices) 10,675 10,539 6,376 4,164 136 81 U.S. government agency corporation obligations 1,914 1,848 1,434 414 66 82 Securities issued by states and political subdivisions in the United States 1,285 1,235 855 380 50 83 Mortgage-backed securities 4,847 4,800 2,819 1,982 47 84 Other debt securities 336 279 185 94 57 85 Certificates of deposit 1,472 1,447 698 750 25 86 Commercial paper 361 177 177 0 184 87 Bankers acceptances 1,628 1,559 1,137 423 69 88 Other trading assets 7,732 7,681 4,757 2,924 51 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 36,643 36,447 20,535 15,912 196 90 Total individual retirement (IRA) and Keogh plan accounts 144,150 104,407 83,052 21,355 39,743 91 Total brokered deposits 47,570 32,653 22,076 10,577 14,917 92 Fully insured brokered deposits 41,023 28,287 18,954 9,333 12,736 93 Issued in denominations of less than $100,000 88,,334455 66,,226655 44,,999900 11,,227755 22,,008800 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 32,678 22,022 13,964 8,058 10,656 95 Money market deposit accounts (MMDAs) 428,584 329,168 257,652 71,516 99,417 96 Other savings deposits 306,355 218,186 161,319 56,867 88,169 97 Total time deposits of less than $100,000 622,080 417,774 334,201 83,573 204,307 98 Time certificates of deposit of $100,000 or more 202,233 130,900 99,847 31,052 71,333 99 Open-account time deposits of $100,000 or more 15,430 12,262 6,491 5,771 3,168 100 All negotiable order of withdrawal (NOW) accounts 300,122 212,279 169,845 42,434 87,843 101 Number of banks 10,433 4,052 3,078 974 6,381 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $ 1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, March 31, 1995 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToo al Total Foreign Domestic Over 100 Under 100 1 Total assets3 4,090,254 2,416,209 693,018 1,824,958 1,361,569 312,476 2 Cash and balances due from depository institutions 273,823 193,013 81,806 111,207 65,965 14,846 4 3 Ca C sh a s i h t e i m te s m i s n i p n r o p c r e o s c s e s o s f o c f o l c l o e l c l t e i c o t n i , o n u n a p n o d s t u e n d p o de st b e i d ts , d e a b nd it s c urrency and coin • 8 n. 2 a , . 9 46 n 2 . , a 6 . 14 6 80 2 , , 3 9 3 1 2 0 2 37 5 , , 8 8 5 4 7 2 T • 1 5 Currency and coin n.a. n.a. 17,422 12,015 6 Balances due from depository institutions in the United States n.a. 23,879 16,007 7,872 14,821 n.a. 7 8 B B a a l l a a n n c ce e s s d du u e e f f r r o o m m b F a e n d k e s r al i n R f e o s r e e r i v g e n B co a u n n k t s r ies and foreign central banks 6 11 7 88 , ,, 9 22 2 66 4 44 63,0 9 8 9 6 11 4 88 , ,, 8 11 3 66 8 55 11 2 11 , ,, 2 0033 4 88 9 T1 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 5,547 12,312 6,076 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 803,826 357,900 36,383 321,517 344,967 100,959 11 U.S. Treasury securities 233,159 99,020 2,282 96,738 101,604 32,535 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 102,269 21,413 71 21,342 52,598 28,258 13 Issued by U.S. government agencies 4,442 1,497 n.a. n.a. 2,103 842 14 Issued by U.S. government-sponsored agencies 97,827 19,916 n.a. n.a. 50,495 27,416 15 Securities issued by states and political subdivisions in the United States 75,295 21,340 507 20,833 38,496 15,459 16 General obligations 55,305 14,385 n.a. n.a. 29,623 11,297 17 Revenue obligations 19,100 6,539 n.a. n.a. 8,511 4,050 18 Industrial development and similar obligations 890 417 n.a. n.a. 361 112 19 Mortgage-backed securities (MBS) 317,466 162,618 2,519 160,100 133,765 21,083 20 Pass-through securities 181,970 92,970 2,504 90,467 76,463 12,537 21 Guaranteed by GNMA 6 3,205 42,295 n.a. n.a. 22,009 3,900 22 Issued by FNMA and FHLMC 110,764 48,406 n.a. n.a. 53,767 8,592 23 Privately issued 3,001 2,270 0 2,270 686 45 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 135,496 69,648 15 69,633 57,302 8,546 25 Issued or guaranteed by FNMA, FHLMC or GNMA 113,979 55,619 7 55,612 50,317 8,042 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 2,980 1,109 n.a. n.a. 1,543 328 27 All other mortgage-backed securities 18,537 12,919 n.a. n.a. 5,442 176 28 Other debt securities 59,621 45,000 29,614 15,386 12,240 2,380 29 Other domestic debt securities n.a. 14,310 327 13,983 11,858 n.a. 30 Foreign debt securities n.a. 30,691 29,288 1,403 383 n.a. 31 Equity securities 16,016 8,509 1,391 7,118 6,263 1,245 32 Investments in mutual funds 2,155 615 40 575 1,101 440 33 Other equity securities with readily determinable fair value 3,504 2,481 680 1,801 928 96 34 All other equity securities 10,358 5,414 672 4,742 4,234 709 35 Federal funds sold and securities purchased under agreements to resell 152,103 99,888 316 99,572 40,033 12,183 36 Federal funds sold 129,950 80,600 n.a. n.a. 37,275 12,075 37 Securities purchased under agreements to resell 22,153 19,288 n.a. n.a. 2,758 107 38 Total loans- and lease-financing receivables, gross 2,415,339 1,374,629 253,618 1,121,011 864,777 175,933 39 LESS: Unearned income on loans 5,674 2,427 1,017 1,410 2,318 929 40 Total loans and leases (net of unearned income) 2,409,665 1,372,202 252,601 1,119,601 862,459 175,004 41 LESS: Allowance for loan and lease losses 52,411 33,393 n.a. n.a. 16,183 2,835 42 LESS: Allocated transfer risk reserves 147 146 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,357,108 1,338,662 n.a. n.a. 846,276 172,169 Total loans, gross, by category 44 Loans secured by real estate 1,012,628 471,265 26,617 444,648 442,364 99,000 45 Construction and land development 27,615 30,928 6,659 4 4 7 6 O Fa n r e m - l t a o n d f our-family residential properties 1 T 1 T 1 278 2 , , 1 3 3 1 4 5 248 9 , ,6 4 1 8 1 0 5 1 2 1 , , 2 0 4 2 5 0 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 43,624 29,862 2,454 49 All other loans 1 1 1 234,509 218,618 49,791 50 Multifamily (five or more) residential properties 1 1 14,294 16,093 2,289 51 Nonfarm nonresidential properties 1 1 1 122,291 137,251 26,787 52 Loans to depository institutions 74,491 69,014 29,942 39,072 5,282 195 53 Commercial banks in the United States n.a. 34,810 924 33,885 4,590 n.a. 54 Other depository institutions in the United States n.a. 2,087 34 2,053 114 n.a. 55 Banks in foreign countries n .a. 32,117 28,984 3,133 578 n.a. 56 Loans to finance agricultural production and other loans to farmers 37,164 5,429 251 5,198 13,677 18,058 57 Commercial and industrial loans 618,835 452,055 113,552 338,503 138,405 28,374 58 U.S. addressees (domicile) n.a. 358,445 22,840 335,604 137,663 n.a. 59 Non-U.S. addressees (domicile) n.a. 93,611 90,712 2,899 742 n.a. 60 Acceptances of other banks 1,649 1,352 999 352 183 114 61 U.S. banks n.a. 255 1 254 n.a. n.a. 62 Foreign banks n.a. 1,096 998 98 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 487,008 220,549 27,323 193,226 238,735 27,724 64 Credit cards and related plans 186,188 87,356 n.a. n.a. 97,186 1,646 65 Other (includes single payment and installment) 300,821 133,193 n.a. n.a. 141,549 26,078 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 19,489 10,415 251 10,163 8,113 961 67 All other loans 118,129 108,104 50,988 57,116 9,096 928 68 Loans to foreign governments and official institutions n.a. 12,723 11,687 1,036 29 n.a. 69 Other loans n.a. 95,381 39,301 56,080 9,068 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 14,947 1,977 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 41,133 7,090 n.a. 72 Lease-financing receivables 45,947 36,447 3,714 32,733 8,922 578 7 7 4 3 P A r s e s m et i s s e h s e l a d n d in fi t x ra ed d in a g s s a e c ts c o ( u in n c ts lu ding capitalized leases) 25 5 5 9 , , 8 1 1 6 6 5 25 3 4 2 , , 5 5 0 4 7 7 T T 4 21 1 , , 2 2 0 7 9 0 5,409 1 7 7 5 6 I O n t v h e e s r t m re e a n l ts e s i t n a te u n o c w o n ns ed o lidated subsidiaries and associated companies 3 8 , , 9 4 2 6 2 2 4 3 , , 9 5 8 2 0 0 1 n. 1 a . 2,7 3 4 7 6 6 73 2 6 6 77 Customers' liability on acceptances outstanding 15,730 15,129 n.a. 578 23 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 1 17,848 n.a. n.a. 79 Intangible assets 26,136 16,641 1 n.a. 9,005 490 80 Other assets 134,163 99,422 I n.a. 29,144 5,596 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A81 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 4,090,254 2,416,209 n. a. n.a. 1,361,569 312,476 82 Total liabilities 3,768,054 2,245,307 692,973 1,654,101 1,241,861 280,886 83 Total deposits 2,842,294 1,518,810 442,207 1,076,602 1,051,181 272,303 84 Individuals, partnerships, and corporations 2,507,019 1,275,183 269,558 1,005,624 983,197 248,639 85 U.S. government n.a. n.a. n. a. 3,370 2,009 361 86 States and political subdivisions in the United States n.a. n.a. n.a. 33,706 48,602 19,759 87 Commercial banks in the United States 57,207 49,490 34,171 15,319 6,946 771 88 Other depository institutions in the United States n.a. n a. n a. 2,626 3,289 1,048 89 Banks in foreign countries n.a. 102,771 96,834 5,937 306 n.a. 9 9 0 1 F C o e r r e ti i f g i n ed g a o n v d e r o n f m fi e c n ia t l s c a h n e d c k o s f ficial institutions n t . t a , . 1 24 37, , 4 6 6 1 2 7 36,3 6 7 8 1 7 8 1 , , 9 0 3 9 0 0 6,81 1 8 3 n 1 . , a 6 . 8 9 92 Residual4 259,945 44,287 4,585 n.a. n.a. 37 93 Total transaction accounts 395,030 316,693 80,979 94 Individuals, partnerships, and corporations 345,880 284,922 71,289 95 U.S. government 2,811 1,556 248 96 States and political subdivisions in the United States 14,840 17,125 7,315 97 Commercial banks in the United States 14,132 4,993 298 98 Other depository institutions in the United States 2,041 995 108 99 Banks in foreign countries 5,711 280 n.a. 100 Foreign governments and official institutions 685 3 n.a. 101 Certified and official checks 8,930 6,818 1,689 102 Residual4 n.a. n.a. 32 103 Demand deposits (included in total transaction accounts) 279,910 179,314 39,355 104 Individuals, partnerships, and corporations 238,021 158,987 35,361 105 U.S. government 2,448 1,507 238 106 States and political subdivisions in the United States 7,948 5,740 1,637 107 Commercial banks in the United States 14,132 4,990 298 108 Other depository institutions in the United States n.a. n a. n a. 2,041 989 105 109 Banks in foreign countries 5,710 280 n.a. 110 Foreign governments and official institutions 679 3 n.a. 111 Certified and official checks 8,930 6,818 1,689 112 Residual4 n.a. n.a. 27 113 Total nontransaction accounts 681,572 734,489 191,325 114 Individuals, partnerships, and corporations 659,744 698,275 177,350 115 U.S. government 558 454 113 116 States and political subdivisions in the United States 18,866 31,476 12,443 117 Commercial banks in the United States 1,187 1,953 473 118 U.S. branches and agencies of foreign banks 51 421 n.a. 119 Other commercial banks in the United States 1,136 1,532 n.a. 120 Other depository institutions in the United States 585 2,294 940 121 Banks in foreign countries 226 26 n.a. 122 Foreign branches of other U.S. banks 0 0 n.a. 123 Other banks in foreign countries 226 26 n.a. 124 Foreign governments and official institutions 406 10 n.a. 125 Residual n.a. n.a. 5 126 Federal funds purchased and securities sold under agreements to repurchase 317,877 228,364 454 227,910 85,966 3,546 127 Federal funds purchased 220,728 166,088 n.a. n.a. 52,963 1,677 128 Securities sold under agreements to repurchase 97,149 62,276 n.a. n.a. 33,004 1,869 129 Demand notes issued to the U.S. Treasury 11,018 9,155 0 9,155 1,778 85 130 Trading liabilities 185,981 185,847 n.a. n.a. 134 0 131 Other borrowed money 247,831 165,761 46,983 118,778 79,774 2,296 132 Banks' liability on acceptances executed and outstanding 15,754 15,153 4,298 10,855 578 23 133 Notes and debentures subordinated to deposits 40,654 37,504 n.a. n.a. 3,116 35 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 83,920 n.a. n.a. 135 All other liabilities 106,644 1,712 n.a. n.a. 19,334 2,598 136 Total equity capital 322,196 170,902 n.a. n.a. 119,707 31,587 MEMO 137 Holdings of commercial paper included in total loans, gross 538 116 422 470 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 63,772 67,224 15,161 139 Total brokered deposits 26,614 21,706 967 140 Fully insured brokered deposits 22,511 18,830 928 141 Issued in denominations of less than $100,000 2,284 4,613 800 142 Issued in denominations of $100,000, or in denominations greater than $100,000 and 2200,,222277 14,217 128 participated out by the broker in shares of $100,000 or less 143 Money market deposit accounts (MMDAs) n.a. n.a. n.a. 224,272 116611,,443366 2299,,004488 144 Other savings deposits (excluding MMDAs) 132,676 133,184 32,617 145 Total time deposits of less than $100,000 222,550 333,344 101,910 146 Time certificates of deposit of $100,000 or more 89,895 104,258 26,854 147 Open-account time deposits of $100,000 or more 12,179 2,267 895 148 All negotiable order of withdrawal (NOW) accounts 114,303 135,522 40,594 149 Number of banks 10,222 198 n.a. 2,914 7,110 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, March 31, 1995 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 3,499,003 2,622,452 1,979,071 643,381 876,551 2 Cash and balances due from depository institutions 192,017 153,309 114,362 38,947 38,708 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 445,926 236,781 185,947 50,834 209,145 4 U.S. Treasury securities 134,139 70,688 53,428 17,260 63,451 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 80,856 37,958 29,289 8,668 42,898 6 Securities issued by states and political subdivisions in the United States 53,955 26,675 20,471 6,203 27,280 7 Mortgage-backed securities (MBS) 154,848 90,217 74,480 15,737 64,631 8 Pass-through securities 89,000 52,957 43,279 9,678 36,043 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 88,268 52,560 42,925 9,635 35,708 10 Other pass-through securities 732 397 354 43 335 11 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 65,848 37,260 31,201 6,059 28,588 12 Issued or guaranteed by FNMA, FHLMC, or GNMA 58,360 33,078 27,615 5,462 25,282 13 All other mortgage-backed securities 7,488 4,183 3,586 597 3,306 14 Other debt securities 14,620 6,940 4,944 1,996 7,681 15 Equity securities 7,508 4,303 3,334 969 3,205 16 Investments in mutual funds 1,540 655 557 97 886 17 Other equity securities with readily determinable fair values 1,023 339 173 166 685 18 All other equity securities 4,944 3,310 2,604 706 1,634 19 Federal funds sold and securities purchased under agreements to resell 151,787 125,581 88,071 37,511 26,206 20 Total loans and lease-financing receivables, gross 2,161,721 1,611,870 1,250,131 361,739 549,851 21 LESS: Unearned income on loans 4,657 2,692 2,108 584 1,965 22 Total loans and leases (net of unearned income) 2,157,064 1,609,178 1,248,023 361,155 547,886 Total loans, gross, by category 23 Loans secured by real estate 986,011 697,987 549,701 148,286 228888,,002244 24 Construction and land development 65,202 44,018 33,685 10,333 21,183 25 Farmland 22,946 10,436 8,407 2,028 12,510 26 One- to four-family residential properties 578,859 426,072 336,421 89,651 152,787 27 Revolving, open-end loans, extended under lines of credit 75,940 58,420 45,703 12,717 17,520 28 All other loans 502,918 367,652 290,717 76,934 135,267 29 Multifamily (five or more) residential properties 32,677 22,138 17,430 4,708 10,539 30 Nonfarm nonresidential properties 286,329 195,324 153,758 41,566 91,005 31 Loans to depository institutions 44,549 41,653 36,879 4,774 2,896 32 Loans to finance agricultural production and other loans to farmers 36,933 18,639 15,210 3,429 18,293 33 Commercial and industrial loans 505,283 406,761 304,276 102,485 98,522 34 Acceptances of other banks 650 348 254 93 302 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 459,685 333,737 266,145 67,592 125,948 36 Obligations (other than securities) of states and political subdivisions in the United States 19,237 15,262 11,700 3,562 3,975 37 All other loans 67,141 61,322 37,463 23,859 5,819 38 Lease-financing receivables 42,232 36,161 28,504 7,658 6,071 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 17,848 15,649 11,570 4,079 2,199 40 Remaining assets 534,361 481,954 331,098 150,856 52,407 41 Total liabilities 3,176,848 2,383,351 1,801,215 582,136 793,497 42 Total deposits 2,400,087 1,730,576 1,323,839 406,737 669,511 43 Individuals, partnerships, and corporations 2,237,460 1,617,015 1,241,100 375,915 620,446 44 U.S. government 5,740 4,625 3,812 813 1,115 45 States and political subdivisions in the United States 102,066 65,824 47,947 17,876 36,243 46 Commercial banks in the United States 23,036 19,504 14,365 5,140 3,532 47 Other depository institutions in the United States 6,964 3,878 2,942 936 3,085 48 Certified and official checks 17,437 13,065 9,663 3,402 4,371 49 Banks in foreign countries, foreign governments, and foreign official institutions 7,384 6,665 4,010 2,655 719 50 Total transaction accounts 792,702 596,786 454,874 141,911 195,916 51 Individuals, partnerships, and corporations 702,091 526,623 403,168 123,454 175,468 52 U.S. government 4,615 3,788 3,036 752 827 53 States and political subdivisions in the United States 39,280 26,572 20,019 6,552 12,709 54 Commercial banks in the United States 19,424 18,123 13,518 4,604 1,301 55 Other depository institutions in the United States 3,144 2,364 1,733 630 781 56 Certified and official checks 17,437 13,065 9,663 3,402 4,371 57 Banks in foreign countries, foreign governments, and foreign official institutions 6,711 6,252 3,736 2,516 460 58 Demand deposits (included in total transaction accounts) 498,578 388,463 290,033 98,430 110,115 59 Individuals, partnerships, and corporations 432,369 333,560 249,964 83,597 98,808 60 U.S. government 4,194 3,398 2,662 736 795 61 States and political subdivisions in the United States 15,325 11,720 8,768 2,951 3,606 67 Commercial banks in the United States 19,420 18,120 13,515 4,604 1,301 63 Other depository institutions in the United States 3,135 2,359 1,729 630 776 64 Certified and official checks 17,437 13,065 9,663 3,402 4,371 65 Banks in foreign countries, foreign governments, and foreign official institutions 6,699 6,241 3,731 2,510 458 66 Total nontransaction accounts 1,607,385 1,133,790 868,965 264,825 473,595 67 Individuals, partnerships, and corporations 1,535,370 1,090,392 837,931 252,460 444,978 68 U.S. government 1,125 838 111 61 288 69 States and political subdivisions in the United States 62,786 39,252 27,928 11,324 23,534 70 Commercial banks in the United States 3,612 1,381 846 535 2,231 71 Other depository institutions in the United States 3,819 1,515 1,209 306 2,305 72 Banks in foreign countries, foreign governments, and foreign official institutions 672 413 274 139 259 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A83 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September3 0, 1994 Millions of dollars except as noted Members IItteemm TToottaall NNoonn-mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 317,423 265,273 190,942 74,331 52,150 74 Demand notes issued to the U.S. Treasury 11,018 9,978 6,328 3,650 1,040 75 Other borrowed money 200,848 158,206 112,842 45,363 4422,,664433 76 Banks liability on acceptances executed and outstanding 11,456 10,868 8,184 2,684 558888 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 83,920 71,050 53,473 17,577 12,869 78 Remaining liabilities 152,097 137,400 105,606 31,794 14,697 MEMO 79 Trading assets at large banks5 83,685 82,785 48,928 33,858 900 80 U.S. Treasury securities (domestic offices) 14,430 14,320 10,797 3,523 110 81 U.S. government agency corporation obligations 1,880 1,826 1,396 430 54 82 Securities issued by states and political subdivisions in the United States 683 634 407 227 49 83 Mortgage-backed securities 4,151 4,100 2,419 1,681 51 84 Other debt securities 350 285 195 90 65 85 Certificates of deposit 1,028 1,028 847 181 0 86 Commercial paper 359 269 269 0 91 87 Bankers acceptances 1,419 1,346 1,021 325 73 88 Other trading assets 6,394 66,,333311 33,,555588 22,,777733 63 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 52,989 52,646 28,018 24,628 343 90 Total individual retirement (IRA) and Keogh plan accounts 146,157 106,202 83,461 22,742 39,955 91 Total brokered deposits 49,286 33,933 23,971 9,961 15,353 92 Fully insured brokered deposits 42,269 29,671 21,712 7,958 12,599 93 Issued in denominations of less than $100,000 77,,669977 55,,554477 55,,116666 382 22,,115500 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 34,572 24,124 16,547 7,577 10,449 95 Money market deposit accounts (MMDAs) 414,756 319,173 247,667 71,506 95,583 96 Other savings deposits 298,477 215,295 156,998 58,297 83,182 97 Total time deposits of less than $100,000 657,804 442,900 349,463 93,437 214,904 98 Time certificates of deposit of $100,000 or more 221,007 144,184 109,175 35,008 76,824 99 Open-account time deposits of $100,000 or more 15,341 12,239 5,662 6,578 3,102 100 All negotiable order of withdrawal (NOW) accounts 290,418 206,305 163,114 43,191 84,114 101 Number of banks 10,222 3,959 2,982 977 6,263 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $ 1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 1995 Millions of dollars except as noted Banks with foreign offices1 Bank o s f f w ic i e t s h o d n o l m y2 e stic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets3 4,143,443 2,433,201 681,929 1,846,349 1,392,340 317,902 2 Cash and balances due from depository institutions 280,877 195,292 82,106 113,186 69,757 15,827 4 3 Ca C sh a s i h t e i m te s m in s i p n r o p c r e o s c s e s o s f o c f o l c l o e l c l t e io ct n i , o n u n a p n o d s t u e n d p d o e s b te i d ts , d a e n b d it s c urrency and coin -> n 8 . 8 a , . 3 64 n 2 . , a 4 . 9 7 6 85 6 , , 8 8 6 8 8 3 4 2 1 9 , , 8 1 3 6 0 8 T 5 Currency and coin n.a. n.<i . 1188,,998855 12,662 1 6 Balances due from depository institutions in the United States n a. 24,445 15,638 88,,880088 16,676 n.a. 7 Balances due from banks in foreign countries and foreign central banks 68,771 63,863 4,908 1,173 1 8 Balances due from Federal Reserve Banks 1133,,771122 108 1133,,660033 1100,,007788 1 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n. i. 6,836 13,835 6,360 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 795,906 358,322 35,507 322,815 338,861 98,723 11 U.S. Treasury securities 214,171 89,745 844 88,901 94,195 30,231 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 113,126 28,599 72 28,528 55,841 28,686 13 Issued by U.S. government agencies 5,337 1,850 n.a. n.a. 2,559 929 14 Issued by U.S. government-sponsored agencies 107,788 26,749 n.a. n.a. 53,282 27,757 15 Securities issued by states and political subdivisions in the United States 74,092 20,448 496 19,953 38,159 15,484 16 General obligations 54,491 13,798 n.a. n.a. 29,368 11,325 17 Revenue obligations 18,779 6,280 n. i. n.a. 8,443 4,056 18 Industrial development and similar obligations 823 371 n.a. n.a. 348 104 19 Mortgage-backed securities (MBS) 317,405 164,310 2,635 161,675 132,314 20,782 20 Pass-through securities 182,593 94,635 2,592 92,043 75,696 12,262 21 Guaranteed by GNMA 69,013 43,580 n. i. n.a. 21,646 3,786 22 Issued by FNMA and FHLMC 110,352 48,738 n.a. n.a. 53,184 8,429 23 Privately issued 3,229 2,317 0 2,317 865 46 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 134,812 69,675 43 69,632 56,618 8,519 25 Issued or guaranteed by FNMA, FHLMC or GNMA 112,166 54,732 7 54,724 49,386 8,048 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 3,132 1,274 n.a. n.a. 1,549 309 27 All other mortgage-backed securities 19,514 13,669 n. a. n.a. 5,683 162 28 Other debt securities 60,002 46,107 30,126 15,981 11,659 2,237 29 Other domestic debt securities n.a. 13,990 301 13,689 11,291 n.a. 30 Foreign debt securities n.a. 32,117 29,825 2,292 368 n.a. 31 Equity securities 17,109 9,112 1,335 7,777 6,694 1,303 32 Investments in mutual funds 2,488 787 26 762 1,256 445 33 Other equity securities with readily determinable fair value 3,862 2,781 757 2,024 987 95 34 All other equity securities 10,759 5,544 553 4,991 4,452 764 35 Federal funds sold and securities purchased under agreements to resell 162,702 103,113 370 102,742 46,428 13,161 36 Federal funds sold 137,979 82,308 n.a. n.a. 42,620 13,052 37 Securities purchased under agreements to resell 24,723 20,805 n.a. n.a. 3,808 109 38 Total loans- and lease-financing receivables, gross 2,489,356 1,417,062 255,034 1,162,027 890,690 181,605 39 LESS: Unearned income on loans 5,716 2,444 1,040 1,405 2,315 957 40 Total loans and leases (net of unearned income) 2,483,640 1,414,617 253,994 1,160,623 888,375 180,648 41 LESS: Allowance for loan and lease losses 52,589 33,495 n. a. n.a. 16,251 2,844 42 LESS: Allocated transfer risk reserves 109 108 n. a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,430,943 1,381,014 n. a. n.a. 872,124 177,804 Total loans, gross, by category 44 Loans secured by real estate 1,042,351 486,201 26,970 459,231 454,827 101,323 45 Construction and land development J 27,119 31,779 6,926 46 Farmland T 2,392 9,897 11,290 47 One- to four-family residential properties 1 291,920 257,392 53,461 48 Revolving, open-end loans, extended under lines of credit n a. n.a. n.a. 45,624 30,707 2,568 49 1 246,296 226,685 50,894 50 Multifamily (five or more) residential properties 1 14,525 16,607 2,299 51 Nonfarm nonresidential properties R t 123,276 139,153 27,346 52 Loans to depository institutions 76,552 71,110 27,528 43,581 5,251 191 53 Commercial banks in the United States n.a. 38,843 1,211 37,631 4,602 n.a. 54 Other depository institutions in the United States n.a. 2,837 76 2,761 104 n.a. 55 Banks in foreign countries n.a. 29,430 26,241 3,189 545 n.a. 56 Loans to finance agricultural production and other loans to farmers 40,179 5,749 206 5,515 14,803 19,627 57 Commercial and industrial loans 636,937 463,814 116,966 346,848 143,681 29,442 58 U.S. addressees (domicile) n.a. 367,675 23,933 343,742 143,010 n.a. 59 Non-U.S. addressees (domicile) n.a. 96,140 93,033 3,107 671 n.a. 60 Acceptances of other banks 1,685 1,462 1,142 320 129 93 61 U.S. banks n.a. 233 1 232 n.a. n.a. 62 n.a. 1,229 1,141 88 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 499,825 226,730 28,241 198,489 244,705 28,390 64 Credit cards and related plans 193,604 90,582 n. a. n.a. 101,363 1,659 65 Other (includes single payment and installment) 306,222 136,148 n. a. n.a. 143,342 26,731 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 19,058 10,176 206 9,969 7,917 965 67 123,980 113,281 49,945 63,336 9,729 971 68 Loans to foreign governments and official institutions n .a. 12,275 11,442 833 21 n.a. 69 n.a. 101,006 38,503 62,503 9,708 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 18,356 2,004 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 44,147 7,704 n.a. 72 Lease-financing receivables 4 8,788 38,539 3,801 34,737 9,647 602 7 7 4 3 P A r s e s m et i s s e h s e l a d n d i n fi t x r e a d d in a g s se a t c s c o (i u n n c t l s u ding capitalized leases) 2 5 2 9 0 , , 8 4 5 0 4 3 21 3 8 2 , , 6 8 8 7 1 0 T 21 1 , , 4 6 9 7 4 6 5,491 1 75 Other real estate owned 7,878 4,604 n.a. 2,582 692 76 Investments in unconsolidated subsidiaries and associated companies 3,890 3,488 n.a. I 378 24 77 Customers' liability on acceptances outstanding 15,589 14,984 1 584 21 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 17,216 n.a. n.a. 79 Intangible assets 26,738 16,846 n.a. 9,372 521 80 Other assets 138,663 103,988 n.a. 29,084 5,590 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A85 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September3 0, 1994 Millions of dollars except as noted Banks with foreign offices1 Bank o s f f w ic i e t s h o d n o l m y2 e stic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 4,143,443 2,433,201 n.a. n.a. 1,392,340 317,902 82 Total liabilities 3,810,646 2,257,078 681,881 1,670,273 1,268,329 285,239 83 Total deposits 2,88( ,299 1,542,597 439,450 1,103,146 1,067,630 276,072 84 Individuals, partnerships, and corporations 2,552,912 1,303,315 273,246 1,030,069 997,679 251,918 85 U.S. government n. a. n.a. n.a. 3,564 2,174 423 86 States and political subdivisions in the United States n.a. n.a. n.a. 33,555 49,096 19,896 87 Commercial banks in the United States 62,951 54,574 37,835 16,738 7,567 810 88 Other depository institutions in the United States n. a. n.a. n. a. 2,678 3,258 1,163 89 Banks in foreign countries n. a. 96,447 90,269 6,178 402 n.a. 90 Foreign governments and official institutions n. a. 34,639 33,611 1,027 17 n.a. 91 Certified and official checks 19,594 10,325 989 9,335 7,437 1,832 92 250,842 43,298 3,500 n.a. n.a. 29 93 Total transaction accounts 403,091 319,166 80,996 94 Individuals, partnerships, and corporations 350,556 284,367 70,914 95 U.S. government 3,073 1,768 307 96 States and political subdivisions in the United States 15,858 18,558 7,513 97 Commercial banks in the United States 15,637 5,579 293 98 Other depository institutions in the United States 2,074 1,064 111 99 Banks in foreign countries 5,917 386 n.a. 100 Foreign governments and official institutions 641 7 n.a. 101 Certified and official checks 9,335 7,437 1,832 102 n.a. n.a. 26 103 Demand deposits (included in total transaction accounts) 298,908 187,610 40,351 104 Individuals, partnerships, and corporations 253,768 165,131 36,155 105 U.S. government 2,624 1,699 294 106 States and political subdivisions in the United States 8,919 6,315 1,646 107 Commercial banks in the United States 15,637 5,575 292 108 Other depository institutions in the United States n.a. n.a. n.a. 2,074 1,059 110 109 Banks in foreign countries 5,916 386 n.a. 110 Foreign governments and official institutions 635 7 n.a. 111 Certified and official checks 9,335 7,437 1,832 112 n.a. n.a. 22 113 Total nontransaction accounts 700,055 748,464 195,076 114 Individuals, partnerships, and corporations 679,513 713,312 181,004 115 U.S. government 491 406 117 116 States and political subdivisions in the United States 17,697 30,538 12,383 117 Commercial banks in the United States 1,102 1,988 517 118 U.S. branches and agencies of foreign banks 51 444 n.a. 119 Other commercial banks in the United States 1,050 1,545 n.a. 120 Other depository institutions in the United States 605 2,194 1,051 121 Banks in foreign countries 261 15 n.a. 122 Foreign branches of other U.S. banks 0 2 n.a. 123 Other banks in foreign countries 261 13 n.a. 124 Foreign governments and official institutions 387 10 n.a. 125 n.a. n.a. 3 126 Federal funds purchased and securities sold under agreements to repurchase 127 Federal funds purchased 317,337 228,225 373 227,852 85,535 33,,557777 128 Securities sold under agreements to repurchase 220,802 164,735 n a. n.a. 54,396 1,671 129 Demand notes issued to the U.S. Treasury 96,534 63,491 n.a. n.a. 31,138 1,905 130 34,551 29,238 0 29,238 5,082 230 131 Other borrowed money 149,402 149,224 n.a. n.a. 177 1 132 Banks' liability on acceptances executed and outstanding 260,475 171,246 48,265 122,981 86,666 2,563 133 Notes and debentures subordinated to deposits 15,624 15,019 3,970 11,049 584 21 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 42,026 38,715 n a. n.a. 3,280 30 135 All other liabilities n.a. n.a. n.a. 77,861 n.a. n.a. 136 TToottaall eeqquuiittyy ccaappiittaall 104,933 82,814 n.a. n.a. 19,374 2,745 332,792 176,123 n.a. n.a. 124,009 32,660 MEMO 137 Holdings of commercial paper included in total loans, gross 138 Total individual retirement (IRA) and Keogh plan accounts 529 120 409 436 n.a. 139 64,926 68,771 15,684 140 24,017 21,279 1,027 141 Issued in denominations of less than $100,000 20,295 18,743 970 142 Issued in denominations of $100,000, or in denominations greater than $100,000 and 22,,330033 3,346 797 participated out by the broker in shares of $100,000 or less 143 Money market deposit accounts (MMDAs) n.a. n.a. n.a. 17,992 1155,,339977 117733 144 Other savings deposits (excluding MMDAs) 235,323 161,930 28,149 145 Total time deposits of less than $100,000 131,557 131,521 31,778 146 Time certificates of deposit of $100,000 or more 230,721 345,282 106,132 147 Open-account time deposits of $100,000 or more 89,359 107,349 28,159 148 AAllll nneeggoottiiaabbllee oorrddeerr ooff wwiitthhddrraawwaall ((NNOOWW)) aaccccoouunnttss 13,096 2,383 857 103,105 129,815 39,652 149 10. ISO 2.893 7,0.19 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 1995 Millions of dollars except as noted Members NNoonn-- IItteemm mmeemmbbeerrss Total National State 1 3,556,591 2,658,423 1,993,133 665,290 898,168 2 Cash and balances due from depository institutions 198,771 157,524 117,854 39,670 41,247 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 437,584 232,207 177,244 54,963 205,377 4 U.S. Treasury securities 124,426 64,390 46,498 17,892 60,036 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 84,527 40,460 29,900 10,559 44,067 6 Securities issued by states and political subdivisions in the United States 53,644 26,883 20,147 6,737 26,760 7 Mortgage-backed securities (MBS) 153,095 89,135 72,504 16,630 63,961 8 Pass-through securities 87,958 52,125 42,368 9,758 35,833 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 87,046 51,531 41,963 9,568 35,515 10 Other pass-through securities 911 594 404 190 318 11 Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS) 65,137 37,009 30,137 6,873 28,128 12 Issued or guaranteed by FNMA, FHLMC, or GNMA 57,435 32,791 26,704 6,088 24,643 13 All other mortgage-backed securities 7,703 4,218 3,433 785 3,485 14 Other debt securities 13,895 6,746 4,689 2,057 7,149 15 Equity securities 7,997 4,594 3,506 1,087 3,404 16 Investments in mutual funds 1,701 701 554 147 999 17 Other equity securities with readily determinable fair values 1,081 423 251 172 658 18 All other equity securities 5,216 3,469 2,701 768 1,746 19 Federal funds sold and securities purchased under agreements to resell 162,331 132,702 91,649 41,053 29,630 20 Total loans- and lease-financing receivables, gross 2,234,322 1,668,583 1,280,742 387,841 565,739 21 LESS: Unearned income on loans 4,676 2,624 2,036 588 2,052 22 Total loans and leases (net of unearned income) 2,229,646 1,665,960 1,278,706 387,253 563,686 Total loans, gross, by category 23 Loans secured by real estate 1,015,381 719,651 560,307 159,344 295,731 24 Construction and land development 65,824 43,932 33,164 10,768 21,892 25 23,579 10,767 8,551 2,216 12,812 26 One- to four-family residential properties 602,773 445,089 348,227 96,861 157,685 27 Revolving, open-end loans, extended under lines of credit 78,899 60,684 47,125 13,560 18,215 28 All other loans 523,875 384,404 301,103 83,301 139,470 29 Multifamily (five or more) residential properties 33,431 22,474 17,463 5,012 10,957 30 Nonfarm nonresidential properties 289,774 197,389 152,902 44,487 92,385 31 Loans to depository institutions 49,023 45,829 40,925 4,905 3,194 32 Loans to finance agricultural production and other loans to farmers 39,945 19,826 16,016 3,810 20,119 33 Commercial and industrial loans 519,971 418,908 310,744 108,164 101,063 34 Acceptances of other banks 543 311 214 97 231 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 471,584 342,757 270,604 72,152 128,827 36 Obligations (other than securities) of states and political subdivisions in the United States 18,852 15,029 11,327 3,701 3,824 37 All other loans 74,036 67,863 40,633 27,231 6,172 38 Lease-financing receivables 44,987 38,410 29,972 8,438 6,577 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 17,216 14,251 10,129 4,122 2,964 40 Remaining assets 511,043 455,780 317,551 138,229 55,263 41 Total liabilities 3,223,842 2,411,400 1,811,553 599,847 812,442 42 Total deposits 2,446,848 1,763,111 1,332,798 430,313 683,737 43 Individuals, partnerships, and corporations 2,279,666 1,645,942 1,247,949 397,992 633,724 44 U.S. government 6,161 4,948 4,048 899 1,213 45 States and political subdivisions in the United States 102,547 66,023 48,099 17,924 36,524 46 Commercial banks in the United States 25,116 21,452 15,521 5,931 3,664 47 Other depository institutions in the United States 7,099 4,029 3,028 1,000 3,071 48 Certified and official checks 18,605 13,835 10,066 3,769 4,769 49 Banks in foreign countries, foreign governments, and foreign official institutions 7,654 6,883 4,086 2,797 771 50 Total transaction accounts 803,253 603,520 448,833 154,687 199,733 51 Individuals, partnerships, and corporations 705,837 527,954 394,151 133,804 177,882 52 U.S. government 5,147 4,183 3,338 845 964 53 States and political subdivisions in the United States 41,929 28,687 21,195 7,492 13,243 54 Commercial banks in the United States 21,508 19,929 14,555 5,374 1,580 55 Other depository institutions in the United States 3,250 2,474 1,752 722 776 56 Certified and official checks 18,605 13,835 10,066 3,769 4,769 57 Banks in foreign countries, foreign governments, and foreign official institutions 6,977 6,458 3,776 2,681 519 58 Demand deposits (included in total transaction accounts) 526,870 411,459 301,482 109,977 115,411 59 Individuals, partnerships, and corporations 455,054 352,114 259,121 92,993 102,940 60 U.S. government 4,618 3,686 2,855 831 931 61 States and political subdivisions in the United States 16,880 12,979 9,368 3,611 3,901 62 Commercial banks in the United States 21,504 19,925 14,551 5,374 1,579 63 Other depository institutions in the United States 3,242 2,471 1,750 721 771 64 Certified and official checks 18,605 13,835 10,066 3,769 4,769 65 Banks in foreign countries, foreign governments, and foreign official institutions 6,966 6,448 3,771 2,677 518 66 Total nontransaction accounts 1,643,596 1,159,592 883,965 275,627 484,004 67 Individuals, partnerships, and corporations 1,573,830 1,117,987 853,799 264,189 455,842 68 1,014 765 711 54 249 69 States and political subdivisions in the United States 60,618 37,336 26,904 10,432 23,281 70 Commercial banks in the United States 3,607 1,524 966 557 2,084 71 Other depository institutions in the United States 3,850 1,555 1,276 278 2,295 72 Banks in foreign countries, foreign governments, and foreign official institutions 677 425 309 116 252 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A87 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, June 30, 1995 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 316,964 263,616 185,727 77,890 53,347 74 Demand notes issued to the U.S. Treasury 34,551 31,459 17,446 14,013 3,092 75 Other borrowed money 212,210 168,136 122,767 45,369 44,073 76 Banks liability on acceptances executed and outstanding 11,655 11,075 8,046 3,029 580 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 77,861 64,714 51,099 13,615 13,148 78 Remaining liabilities 123,753 109,289 93,670 15,619 14,465 MEMO 79 Trading assets at large banks5 69,803 68,884 39,350 29,533 920 80 U.S. Treasury securities (domestic offices) 13,307 13,202 7,529 5,673 105 81 U.S. government agency corporation obligations 2,062 1,995 1,684 311 67 82 Securities issued by states and political subdivisions in the United States 1,338 1,285 894 391 53 83 Mortgage-backed securities 2,612 2,590 1,018 1,571 22 84 Other debt securities 929 873 700 173 56 85 Certificates of deposit 885 885 521 364 0 86 Commercial paper 282 157 157 0 125 87 Bankers acceptances 2,204 1,973 1,221 752 231 88 Other trading assets 5,382 5,310 3,202 2,108 71 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 40,802 40,613 22,424 18,190 189 90 Total individual retirement (IRA) and Keogh plan accounts 149,381 108,069 83,908 24,162 41,312 91 Total brokered deposits 46,323 31,665 23,566 8,099 14,658 92 Fully insured brokered deposits 40,008 27,578 21,454 6,124 12,430 93 Issued in denominations of less than $100,000 66,,444466 4,410 44,,110044 305 2,036 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 33,562 23,169 17,349 5,819 10,394 95 Money market deposit accounts (MMDAs) 425,402 331,127 257,445 73,682 94,274 96 Other savings deposits 294,856 213,474 153,723 59,751 81,383 97 Total time deposits of less than $100,000 682,135 456,944 356,034 100,910 225,191 98 Time certificates of deposit of $100,000 or more 224,867 144,890 110,677 34,214 79,977 99 Open-account time deposits of $100,000 or more 16,336 13,156 6,086 7,070 3,179 100 All negotiable order of withdrawal (NOW) accounts 272,572 189,962 145,528 44,434 82,610 101 Number of banks 10,150 3,937 2,944 993 6,213 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, September 30, 1995 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToo al Total Foreign Domestic Over 100 Under 100 1 Total assets3 4,201,899 2,471,741 696,178 1,878,415 1,408,789 321,368 2 Cash and balances due from depository institutions 274,090 190,850 76,997 113,853 67,868 15,372 3 Cash items in process of collection, unposted debits, and currency and coin • 88,605 2,178 86,427 39,827 4 Cash items in process of collection and unposted debits n.a. n.a. 67,732 27,341 T 5 Currency and coin n.a. n.a. 18,695 12,487 1 6 Balances due from depository institutions in the United States n a. 22,775 13,793 8,982 16,309 n.a. 7 Balances due from banks in foreign countries and foreign central banks 66,619 60,924 5,695 1,974 1 8 Balances due from Federal Reserve Banks 1122,,885511 102 12,749 9,758 1 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 6,805 13,336 6,161 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 80) 5,855 368,277 39,339 328,938 342,272 98,306 11 U.S. Treasury securities 208,005 85,185 1,639 83,546 93,573 29,247 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 118,664 29,936 98 29,838 58,957 29,771 13 Issued by U.S. government agencies 5,681 1,983 n.a. n.a. 2,680 1,018 14 Issued by U.S. government-sponsored agencies 112,983 27,952 n.a. n.a. 56,277 28,753 15 Securities issued by states and political subdivisions in the United States 73,632 20,880 630 20,250 37,371 15,381 16 General obligations 54,654 14,674 n.a. n.a. 28,715 11,265 17 Revenue obligations 18,217 5,877 n.a. n.a. 8,323 4,017 18 Industrial development and similar obligations 761 329 n.a. n.a. 333 99 19 Mortgage-backed securities (MBS) 326,639 173,067 2,610 170,458 133,167 20,405 20 Pass-through securities 194,943 104,795 2,565 102,231 78,087 12,060 21 Guaranteed by GNMA 73,797 47,991 n.a. n.a. 22,139 3,667 22 Issued by FNMA and FHLMC 118,149 54,802 n.a. n.a. 55,007 8,340 23 Privately issued 2,997 2,003 0 2,003 942 53 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 131,696 68,272 45 68,227 55,079 8,345 25 Issued or guaranteed by FNMA, FHLMC or GNMA 108,042 52,865 2 52,863 47,266 7,911 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 3,051 1,305 n.a. n.a. 1,462 284 27 All other mortgage-backed securities 20,603 14,102 n.a. n.a. 6,352 150 28 Other debt securities 64,020 49,824 32,973 16,851 12,026 2,171 29 Other domestic debt securities n.a. 15,005 293 14,712 11,634 n.a. 30 Foreign debt securities n.a. 34,819 32,680 2,139 391 n.a. 31 Equity securities 17,895 9,385 1,390 7,995 7,178 1,332 32 Investments in mutual funds 2,570 691 28 663 1,447 432 33 Other equity securities with readily determinable fair value 3,931 2,877 700 2,176 958 96 34 All other equity securities 11,394 5,817 662 5,155 4,773 804 35 Federal funds sold and securities purchased under agreements to resell 155,148 97,347 580 96,767 43,933 13,868 36 Federal funds sold 134,385 79,610 n.a. n.a. 41,052 13,723 37 Securities purchased under agreements to resell 20,762 17,736 n.a. n.a. 2,881 145 38 Total loans- and lease-financing receivables, gross 2,546,168 1,454,013 262,471 1,191,542 907,594 184,561 39 LESS: Unearned income on loans 5,590 2,387 1,018 1,369 2,268 934 40 Total loans and leases (net of unearned income) 2,540,578 1,451,626 261,453 1,190,173 905,325 183,626 41 LESS: Allowance for loan and lease losses 52,527 32,901 n.a. n.a. 16,779 2,847 42 LESS: Allocated transfer risk reserves 109 108 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,487,943 1,418,616 n.a. n.a. 888,547 180,780 Total loans, gross, by category 44 Loans secured by real estate 1,063,189 503,276 27,238 476,038 457,247 110022,,666666 45 Construction and land development 27,287 32,862 7,276 46 Farmland T T 2,441 9,998 11,385 47 One- to four-family residential properties 1 1 1 305,328 258,018 53,954 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 45,820 30,484 2,584 49 All other loans 1 1 1 259,508 227,534 51,370 5 5 0 1 M No u n lt f i a f r a m m i n ly o n ( r f e iv s e id o en r t m ia o l r p e r ) o r p e e s r i t d ie e s n tial properties T 1 •1 •1 12 1 5 5 , , 0 9 6 1 5 8 13 1 9 6 , ,9 3 9 7 2 8 27 2 , , 7 3 3 1 9 2 52 Loans to depository institutions 83,893 78,667 30,970 47,697 5,037 189 53 Commercial banks in the United States n.a. 40,552 1,200 39,352 4,371 n.a. 54 Other depository institutions in the United States n .a. 4,310 43 4,267 107 n.a. 55 Banks in foreign countries n.a. 33,805 29,727 4,078 559 n.a. 56 Loans to finance agricultural production and other loans to farmers 41,745 5,905 121 5,673 15,449 20,391 57 Commercial and industrial loans 644,095 470,060 119,380 350,680 144,298 29,736 58 U.S. addressees (domicile) n .a. 372,230 24,563 347,667 143,642 n.a. 59 Non-U.S. addressees (domicile) n .a. 97,830 94,816 3,014 656 n.a. 60 Acceptances of other banks 1,646 1,419 1,074 345 154 74 61 U.S. banks n.a. 191 1 191 n.a. n.a. n.a. 1,228 1,073 155 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 515,306 228,202 29,386 198,816 258,195 28,909 64 Credit cards and related plans 201,683 85,961 n.a. n.a. 113,976 1,746 65 Other (includes single payment and installment) 313,623 142,241 n.a. n.a. 144,219 27,163 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 18,937 9,898 121 9,777 8,048 992 125,325 114,668 50,309 64,359 9,664 993 68 Loans to foreign governments and official institutions n.a. 12,314 11,354 960 23 n.a. n.a. 102,354 38,955 63,399 9,641 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 17,759 1,976 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 45,639 7,665 n.a. 72 Lease-financing receivables 52,031 41,919 3,762 38,156 9,502 611 73 Assets held in trading accounts 223,763 222,152 F 1,570 1 74 Premises and fixed assets (including capitalized leases) 60,453 33,220 T 1 21,661 5,572 75 Other real estate owned 7,585 4,446 n.a. 2,473 666 76 Investments in unconsolidated subsidiaries and associated companies 4,057 3,668 I •1 363 26 77 Customers' liability on acceptances outstanding 16,702 16,130 n.a. 552 20 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 1 20,707 n.a. n.a. 79 Intangible assets 28,384 17,598 1 n.a. 10,257 529 80 Other assets 134,920 99,437 1 n.a. 29,295 6,188 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A89 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 4,201,899 2,471,741 n a. n.a. 1,408,789 321,368 82 Total liabilities 3,859,858 2,289,919 696,179 1,696,591 1,281,824 288,115 83 Total deposits 2,910,248 1,563,234 449,533 1,113,701 1,068,611 278,403 84 Individuals, partnerships, and corporations 2,571,376 1,316,444 278,785 1,037,659 1,000,382 254,551 85 U.S. government n a. n.a. n.a. 3,257 2,104 392 86 States and political subdivisions in the United States n a. n.a. n.a. 35,868 47,935 19,695 87 Commercial banks in the United States 59,966 51,457 34,678 16,779 7,682 827 88 Other depository institutions in the United States n.a. n.a. n.a. 2,909 2,959 1,168 89 Banks in foreign countries n a. 100,486 93,510 6,976 350 n.a. 90 Foreign governments and official institutions n a. 36,731 35,688 1,043 23 n.a. 91 Certified and official checks 18,992 10,084 875 9,210 7,175 1,733 92 259,914 45 ,032 5,997 n.a. n.a. 38 93 Total transaction accounts 388,230 305,268 80,370 94 Individuals, partnerships, and corporations 334,929 272,067 70,549 95 U.S. government 2,772 1,653 274 96 States and political subdivisions in the United States 16,088 17,335 7,374 97 Commercial banks in the United States 15,763 5,773 294 98 Other depository institutions in the United States 2,266 931 110 99 Banks in foreign countries 6,573 333 n.a. 100 Foreign governments and official institutions 630 2 n.a. 101 Certified and official checks 9,210 7,175 1,733 102 n.a. n.a. 36 103 Demand deposits (included in total transaction accounts) 295,229 185,173 40,401 104 Individuals, partnerships, and corporations 248,353 163,453 36,323 105 U.S. government 2,734 1,594 264 106 States and political subdivisions in the United States 9,720 5,927 1,651 107 Commercial banks in the United States 15,751 5,767 293 108 Other depository institutions in the United States n.a. n a. n a. 2,264 923 108 109 Banks in foreign countries 6,571 333 n.a. 110 Foreign governments and official institutions 626 2 n.a. 111 Certified and official checks 9,210 7,175 1,733 112 Residual4 n.a. n.a. 29 113 Total nontransaction accounts 725,471 763,342 198,033 114 Individuals, partnerships, and corporations 702,730 728,315 184,002 115 U.S. government 486 450 117 116 States and political subdivisions in the United States 19,780 30,600 12,321 117 Commercial banks in the United States 1,016 1,909 533 118 U.S. branches and agencies of foreign banks 60 379 n.a. 119 Other commercial banks in the United States 956 1,531 n.a. 120 Other depository institutions in the United States 643 2,029 1,057 121 Banks in foreign countries 404 18 n.a. 122 Foreign branches of other U.S. banks 3 0 n.a. 123 Other banks in foreign countries 401 18 n.a. 124 Foreign governments and official institutions 413 21 n.a. 125 Residual n.a. n.a. 2 126 Federal funds purchased and securities sold under agreements to repurchase 327,086 234,449 755 233,694 89,200 3,438 127 Federal funds purchased 233,776 174,095 n.a. n.a. 58,014 1,667 128 Securities sold under agreements to repurchase 93,310 60,354 n.a. n.a. 31,186 1,771 129 Demand notes issued to the U.S. Treasury 25,607 21,578 0 21,578 3,767 262 no Trading liabilities 147,990 147,877 n.a. n.a. 113 0 131 Other borrowed money 280,695 181,912 51,133 130,778 96,080 2,703 132 Banks' liability on acceptances executed and outstanding 16,734 16,162 4,240 11,922 552 20 133 Notes and debentures subordinated to deposits 43,549 39,816 n.a. n.a. 3,702 31 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 82,144 n.a. n.a. 135 All other liabilities 107,949 84,892 n.a. n.a. 19,799 3,258 136 Total equity capital 342,037 181,822 n.a. n.a. 126,964 33,250 137 M Ho E l M d O in gs of commercial paper included in total loans, gross 440044 9944 331111 772211 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 65,821 69,023 15,865 139 Total brokered deposits 23,311 21,393 1,013 140 Fully insured brokered deposits 19,782 18,103 969 141 Issued in denominations of less than $100,000 2,682 3,211 763 142 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n a. n.a. n.a. 17,100 14,892 207 143 Money market deposit accounts (MMDAs) 247,705 174,145 28,608 144 Other savings deposits (excluding MMDAs) 134,170 129,086 31,220 145 Total time deposits of less than $100,000 236,265 347,104 108,086 146 Time certificates of deposit of $100,000 or more 94,873 110,740 29,229 147 Open-account time deposits of $100,000 or more 12,458 2,268 891 148 All negotiable order of withdrawal (NOW) accounts 92,066 118,343 38,895 149 Number of banks 10,033 198 n.a. 2,861 6,974 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, September 30, 1995 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 3,608,572 2,704,751 2,015,780 688,972 903,821 2 Cash and balances due from depository institutions 197,093 155,765 117,459 38,305 41,328 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 440,578 238,783 179,895 58,888 201,795 4 U.S. Treasury securities 122,820 64,292 45,797 18,496 58,527 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 88,728 42,613 31,594 11,018 46,115 6 Securities issued by states and political subdivisions in the United States 52,752 27,038 19,895 7,143 25,714 7 Mortgage-backed securities (MBS) 153,572 92,663 73,856 18,807 60,909 8 Pass-through securities 90,147 55,848 44,094 11,754 34,299 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 89,153 55,172 43,661 11,511 33,981 10 Other pass-through securities 995 676 433 243 318 11 Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS) 63,424 36,815 29,762 7,053 26,609 12 Issued or guaranteed by FNMA, FHLMC, or GNMA 55,177 31,957 25,716 6,242 23,220 13 All other mortgage-backed securities 8,247 4,858 4,046 811 3,390 14 Other debt securities 14,196 7,291 5,079 2,212 6,905 15 Equity securities 8,510 4,886 3,674 1,212 3,624 16 Investments in mutual funds 1,879 756 596 160 1,124 17 Other equity securities with readily determinable fair values 1,054 362 191 171 692 18 All other equity securities 5,577 3,768 2,887 881 1,808 19 Federal funds sold and securities purchased under agreements to resell 154,568 125,211 88,722 36,489 29,356 20 Total loans- and lease-financing receivables, gross 2,283,697 1,713,311 1,305,290 408,022 570,385 21 LESS: Unearned income on loans 4,572 2,578 2,003 576 1,993 22 Total loans and leases (net of unearned income) 2,279,125 1,710,733 1,303,287 407,446 568,392 Total loans, gross, by category 23 Loans secured by real estate 1,035,951 741,534 571,693 169,841 294,417 24 Construction and land development 67,424 45,078 33,643 11,436 22,346 25 Farmland 23,824 10,992 8,623 2,369 12,833 26 One- to four-family residential properties 617,299 461,007 358,233 102,773 156,293 27 Revolving, open-end loans, extended under lines of credit 78,888 61,055 47,409 13,646 17,833 28 All other loans 538,412 399,952 310,824 89,128 138,459 29 Multifamily (five or more) residential properties 35,221 24,194 17,684 6,510 11,027 30 Nonfarm nonresidential properties 292,182 200,263 153,510 46,753 91,919 31 Loans to depository institutions 52,923 49,405 43,314 6,091 3,518 32 Loans to finance agricultural production and other loans to farmers 41,514 20,640 16,556 4,084 20,873 33 Commercial and industrial loans 524,715 422,989 310,897 112,092 101,726 34 Acceptances of other banks 573 348 193 155 225 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 485,920 353,479 278,353 75,125 132,441 36 Obligations (other than securities) of states and political subdivisions in the United States 18,816 14,926 11,145 3,781 3,890 37 All other loans 75,016 69,081 41,211 27,870 5,935 38 Lease-financing receivables 48,269 40,910 31,928 8,982 7,359 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 20,707 17,696 11,682 6,015 3,011 40 Remaining assets 516,501 456,563 314,734 141,829 59,938 41 Total liabilities 3,266,530 2,449,912 1,829,651 620,261 816,619 42 Total deposits 2,460,715 1,777,918 1,338,819 439,099 682,797 43 Individuals, partnerships, and corporations 2,292,592 1,659,319 1,253,779 405,540 633,272 44 U.S. government 5,753 4,592 3,701 890 1,162 45 States and political subdivisions in the United States 103,498 67,163 47,675 19,488 36,335 46 Commercial banks in the United States 25,288 21,603 16,214 5,389 3,685 47 Other depository institutions in the United States 7,036 4,174 3,170 1,004 2,862 48 Certified and official checks 18,117 13,513 9,833 3,679 4,604 49 Banks in foreign countries, foreign governments, and foreign official institutions 8,431 7,555 4,448 3,107 876 50 Total transaction accounts 773,868 577,105 429,640 147,465 196,763 51 Individuals, partnerships, and corporations 677,545 502,193 375,743 126,449 175,353 52 U.S. government 4,700 3,838 3,006 832 862 53 States and political subdivisions in the United States 40,797 27,744 19,890 7,853 13,053 54 Commercial banks in the United States 21,830 20,051 15,154 4,897 1,778 55 Other depository institutions in the United States 3,307 2,621 1,886 734 686 56 Certified and official checks 18,117 13,513 9,833 3,679 4,604 57 Banks in foreign countries, foreign governments, and foreign official institutions 7,573 7,146 4,127 3,020 426 58 Demand deposits (included in total transaction accounts) 520,803 406,215 299,691 106,524 114,588 59 Individuals, partnerships, and corporations 448,129 346,211 256,695 89,516 101,919 60 U.S. government 4,592 3,766 2,946 819 826 61 States and political subdivisions in the United States 17,298 12,934 9,074 3,860 4,364 6? Commercial banks in the United States 21,811 20,035 15,137 4,897 1,777 63 Other depository institutions in the United States 3,296 2,616 1,882 734 680 64 Certified and official checks 18,117 13,513 9,833 3,679 4,604 65 Banks in foreign countries, foreign governments, and foreign official institutions 7,560 7,141 4,123 3,018 419 66 Total nontransaction accounts 1,686,846 1,200,813 909,179 291,634 486,033 67 Individuals, partnerships, and corporations 1,615,046 1,157,127 878,036 279,091 457,920 68 1,054 754 695 59 300 69 States and political subdivisions in the United States 62,701 39,420 27,784 11,635 23,282 70 Commercial banks in the United States 3,458 1,551 1,060 492 1,907 71 Other depository institutions in the United States 3,729 1,553 1,283 270 2,176 72 Banks in foreign countries, foreign governments, and foreign official institutions 858 409 321 88 449 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A91 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Members NNoonn-fftteemm TToottaall mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 326,331 271,342 188,586 82,755 54,990 74 Demand notes issued to the U.S. Treasury 25,607 23,228 12,792 10,436 2,378 75 Other borrowed money 229,562 182,130 133,921 48,209 47,432 76 Banks liability on acceptances executed and outstanding 12,494 11,898 8,645 3,252 596 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 82,144 69,292 53,492 15,800 12,852 78 Remaining liabilities 129,678 114,104 93,396 20,708 15,574 MEMO 79 Trading assets at large banks5 67,783 66,740 40,533 26,207 1,043 80 U.S. Treasury securities (domestic offices) 14,864 14,769 9,285 5,484 95 81 U.S. government agency corporation obligations 2,475 2,395 2,027 368 79 82 Securities issued by states and political subdivisions in the United States 786 709 402 306 78 83 Mortgage-backed securities 2,665 2,626 742 1.884 38 84 Other debt securities 1,150 1,119 370 749 31 85 Certificates of deposit 1,867 1,867 824 1,043 0 86 Commercial paper 288 135 135 0 153 87 Bankers acceptances 2,026 1,839 1,295 544 187 88 Other trading assets 5,228 5,140 2,726 2,414 88 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 36,433 36,140 22,725 13,415 293 90 Total individual retirement (IRA) and Keogh plan accounts 150,709 109,410 84,190 25,220 41,299 91 Total brokered deposits 45,717 31,333 23,363 7,969 14,385 92 Fully insured brokered deposits 38,854 26,755 20,896 5,859 12,099 93 Issued in denominations of less than $100,000 66,,665555 44,,449955 44,,111166 379 22,,116600 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 32,199 22,260 16,780 5,480 9,939 95 Money market deposit accounts (MMDAs) 450,458 354,999 275,136 79,862 95,459 96 Other savings deposits 294,475 214,779 153,881 60,898 79,696 97 Total time deposits of less than $100,000 691,455 466,402 357,932 108,470 225,053 98 Time certificates of deposit of $100,000 or more 234,841 151,989 115,840 36,149 82,852 99 Open-account time deposits of $100,000 or more 15,618 12,645 6,390 6,255 2,973 100 All negotiable order of withdrawal (NOW) accounts 249,304 168,886 128,239 40,647 80,417 101 Number of banks 10,033 3,927 2,895 1,032 6,106 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, December 31, 1995 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToo al Total Foreign Domestic Over 100 Under 100 1 Total assets3 4,285,339 2,530,056 666,264 1,962,816 1,426,903 328,381 2 Cash and balances due from depository institutions 305,242 209,523 75,854 133,670 78,515 17,204 4 3 Ca C sh a s i h t em ite s m i s n i p n r o p c r e o s c s e s o s f o c f o l c l o ec ll t e io ct n i , o n u n a p n o d s t u e n d p d o e s b te i d ts , d a e n b d it s c urrency and coin 1 n 0 . 4 a , . 4 39 n 2 . , a 4 . 34 1 7 0 7 2 , , 9 0 5 0 0 4 4 3 5 1 , , 6 2 2 5 3 5 TF 5 Currency and coin n.a. n.a. 24,054 14,368 I 6 Balances due from depository institutions in the United States n a. 22,619 12,241 10,378 20,262 n.a. 7 Balances due from banks in foreign countries and foreign central banks 64,062 61,048 3,014 1,609 1 8 Balances due from Federal Reserve Banks 18,404 131 18,274 11,021 T MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 8,583 17,008 6,998 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 801,119 364,589 40,321 324,268 337,580 98,950 11 U.S. Treasury securities 192,848 79,586 890 78,696 85,367 27,895 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 123,729 30,396 92 30,304 6611,,998800 3311,,335533 13 Issued by U.S. government agencies 6,223 2,098 n.a. n.a. 2,948 1,177 14 Issued by U.S. government-sponsored agencies 117,506 28,298 n.a. n.a. 59,032 30,177 11 Securities issued by states and political subdivisions in the United States 73,610 20,465 329 20,136 37,560 15,585 16 General obligations 55,279 14,825 n.a. n.a. 29,015 11,439 17 Revenue obligations 17,627 5,377 n.a. n.a. 8,204 4,045 18 Industrial development and similar obligations 704 263 n.a. n.a. 341 100 19 Mortgage-backed securities (MBS) 326,615 172,003 3,700 168,303 133,940 20,672 20 Pass-through securities 201,351 108,932 3,653 105,280 80,039 12,379 21 Guaranteed by GNMA 75,153 49,772 n.a. n.a. 21,698 3,683 ?.?. Issued by FNMA and FHLMC 123,205 57,255 n.a. n.a. 57,326 8,624 23 Privately issued 2,992 1,906 0 1,906 1,014 72 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 125,265 63,071 47 63,024 53,900 8,293 25 Issued or guaranteed by FNMA, FHLMC or GNMA 100,302 46,592 11 46,581 45,873 7,837 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 3,255 1,616 n.a. n.a. 1,341 298 27 All other mortgage-backed securities 21,707 14,863 n.a. n.a. 6,687 158 78 Other debt securities 65,926 52,036 33,996 18,040 11,812 2,079 29 Other domestic debt securities n.a. 14,867 361 14,506 11,432 n.a. 30 Foreign debt securities n.a. 37,169 33,636 3,533 379 n.a. 31 Equity securities 18,391 10,103 1,315 8,788 6,922 1,366 32 Investments in mutual funds 2,336 770 44 727 1,138 427 33 Other equity securities with readily determinable fair value 4,107 3,023 601 2,422 984 100 34 All other equity securities 11,949 6,310 670 5,640 4,801 838 35 Federal funds sold and securities purchased under agreements to resell 180,510 113,451 360 113,091 49,796 17,263 36 Federal funds sold 152,062 89,835 n.a. n.a. 45,140 17,088 37 Securities purchased under agreements to resell 28,448 23,616 n.a. n.a. 4,656 176 38 Total loans- and lease-financing receivables, gross 2,593,437 1,494,331 265,792 1,228,539 913,264 185,842 39 LESS: Unearned income on loans 5,394 2,292 1,032 1,260 2,187 916 40 Total loans and leases (net of unearned income) 2,58 3,043 1,492,040 264,761 1,227,279 911,077 184,926 41 LESS: Allowance for loan and lease losses 52,516 32,824 n.a. n.a. 16,859 2,833 4? LESS: Allocated transfer risk reserves 110 109 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,535,418 1,459,106 n.a. n.a. 894,218 182,093 Total loans, gross, by category 44 Loans secured by real estate 1,072,433 513,264 27,182 486,082 445555,,007788 110044,,009900 4 4 5 6 Construction and land development • T L FT 1 27 2 , , 4 4 8 6 1 6 3 1 3 0 , , 1 1 8 1 9 6 1 7 1 , , 5 2 4 4 0 8 47 One- to four-family residential properties 311,311 255,316 54,539 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 46,759 29,764 2,649 49 All other loans 1 1 264,552 225,552 51,890 50 Multifamily (five or more) residential properties 1 1 16,409 16,959 2,354 51 Nonfarm nonresidential properties R • T 128,416 139,498 28,409 52 Loans to depository institutions 8 5,850 81,509 28,445 53,064 5,134 207 53 Commercial banks in the United States n.a. 44,838 908 43,930 4,756 n.a. 54 Other depository institutions in the United States n.a. 5,202 78 5,123 124 n.a. 55 Banks in foreign countries n.a. 31,469 27,459 4,010 254 n.a. 56 Loans to finance agricultural production and other loans to farmers 40,025 6,252 130 5,960 14,838 18,935 57 Commercial and industrial loans 657,940 482,289 125,492 356,796 145,182 30,469 58 U.S. addressees (domicile) n.a. 377,938 24,736 353,202 144,647 n.a. 59 Non-U.S. addressees (domicile) n.a. 104,351 100,756 3,594 535 n.a. 60 Acceptances of other banks 1,877 1,515 1,092 423 262 100 61 U.S. banks n a. 210 1 209 n.a. n.a. 62 n.a. 1,305 1,092 214 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes 532,470 237,572 30,609 206,963 265,443 29,455 64 Credit cards and related plans 217,591 90,296 n.a. n.a. 125,187 2,108 65 Other (includes single payment and installment) 314,879 147,276 n.a. n.a. 140,256 27,347 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 18,519 99,,881177 113300 9,686 77,,773300 997722 67 126,324 115,717 48,664 67,053 9,616 991 68 Loans to foreign governments and official institutions n.a. 10,979 9,984 996 20 n.a. 69 n.a. 104,738 38,680 66,057 9,596 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 16,778 1,942 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 49,280 7,654 n.a. 7? 56,999 46,397 3,885 42,512 9,981 621 7 7 4 3 P A r s e s m et i s s e h s e l a d n d i n fi t x ra ed d in a g s s a e c ts c o ( u in n c t l s u ding capitalized leases) 21 6 7 0 , , 0 9 6 2 8 9 21 3 5 3 , , 5 7 7 1 1 4 F F1 21 1 , , 5 4 4 3 7 9 55,,666688 11 7 7 5 6 O In t v h e e s r tm re e a n l ts e st in a te u n o c w o n n e s d o lidated subsidiaries and associated companies 4 6 , , 5 6 1 1 9 0 4 3 , , 0 7 8 4 3 0 1 n. 1 a. 2, 4 25 0 0 9 62 2 0 7 77 Customers' liability on acceptances outstanding 16,171 15,808 n.a. • 338 25 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 1 18,008 n.a. n.a. 79 Intangible assets 30,029 19,126 1 n.a. 10,250 654 80 Other assets 127,723 91,345 • n.a. 30,560 5,818 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A93 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 4,285,339 2,530,056 n.a. n.a. 1,426,903 328,381 82 Total liabilities 3,937,817 2,343,109 666,265 1,775,869 1,300,053 294,654 83 Total deposits 3,005,998 1,642,442 453,975 1,188,467 1,078,137 285,418 84 Individuals, partnerships, and corporations 2,647,884 1,381,996 278,284 1,103,712 1,005,844 260,044 85 U.S. government n.a. n.a. n.a. 4,468 3,055 550 86 States and political subdivisions in the United States n. a. n.a. n.a. 38,687 50,105 20,537 87 Commercial banks in the United States 59,802 50,501 30,612 19,889 8,415 886 88 Other depository institutions in the United States n. a. n.a. n. a. 3,516 3,054 1,310 89 Banks in foreign countries n. a. 104,910 98,130 6,780 263 n.a. 90 Foreign governments and official institutions n. a. 40,248 38,809 1,439 28 n.a. 91 Certified and official checks 20,304 10,875 900 9,974 7,372 2,057 92 Residual4 278,007 53,912 7,241 n.a. n.a. 34 93 Total transaction accounts 420,132 316,320 84,933 94 Individuals, partnerships, and corporations 360,599 279,792 74,227 95 US. government 4,045 2,658 430 96 States and political subdivisions in the United States 16,625 18,532 7,742 97 Commercial banks in the United States 18,355 6,802 337 98 Other depository institutions in the United States 2,881 945 110 99 Banks in foreign countries 6,662 208 n.a. 100 Foreign governments and official institutions 990 10 n.a. 101 Certified and official checks 9,974 7,372 2,057 102 Residual4 n.a. n.a. 31 103 Demand deposits (included in total transaction accounts) 333,239 196,417 43,407 104 Individuals, partnerships, and corporations 280,386 172,261 38,744 105 U.S. government 4,021 2,599 418 106 States and political subdivisions in the United States 9,974 6,228 1,716 107 Commercial banks in the United States 18,355 6,800 334 108 Other depository institutions in the United States n.a. n.a. n.a. 2,881 939 108 109 Banks in foreign countries 6,661 208 n.a. no Foreign governments and official institutions 987 10 n.a. 111 Certified and official checks 9,974 7,372 2,057 112 Residual4 n.a. n.a. 30 in Total nontransaction accounts 768,335 761,817 200,485 114 Individuals, partnerships, and corporations 743,113 726,051 185,817 115 U.S. government 423 397 120 116 States and political subdivisions in the United States 22,062 31,573 12,795 117 Commercial banks in the United States 1,534 1,613 549 118 U.S. branches and agencies of foreign banks 60 217 n.a. 119 Other commercial banks in the United States 1,474 1,396 n.a. 120 Other depository institutions in the United States 635 2,109 1,200 121 Banks in foreign countries 119 55 n.a. 122 Foreign branches of other U.S. banks 1 0 n.a. 123 Other banks in foreign countries 118 55 n.a. 124 Foreign governments and official institutions 449 18 nn..aa.. 125 Residual n.a. n.a. 33 126 Federal funds purchased and securities sold under agreements to repurchase 322,957 229,703 643 229,060 90,173 3,082 127 Federal funds purchased 244,600 181,615 n.a. n.a. 61,676 1,310 128 Securities sold under agreements to repurchase 78,357 48,088 n.a. n.a. 28,497 1,772 129 Demand notes issued to the U.S. Treasury 11,868 9,746 0 9,746 2,018 104 no Trading liabilities 143,138 142,947 n a. n.a. 189 2 ni Other borrowed money 287,724 181,462 51,007 130,454 103,524 2,738 132 Banks' liability on acceptances executed and outstanding 16,225 15,860 3,941 11,919 339 25 133 Notes and debentures subordinated to deposits 43,261 39,068 n a. n.a. 4,163 30 134 Net due to own foreign offices. Edge Act and agreement subsidiaries, and IBFs n a. n a. n.a. 81,017 n.a. nn..aa.. 135 106,646 81,883 n a. n.a. 21,509 33,,225544 136 Total equity capital 347,518 186,946 n.a. n.a. 126,848 33,724 137 H M o E l M di O n gs of commercial paper included in total loans, gross 334499 60 228899 992211 nn..aa.. 138 Total individual retirement (IRA) and Keogh plan accounts 6666,,338855 68,175 1155,,998866 139 Total brokered deposits 23,599 21,107 1,011 140 Fully insured brokered deposits 19,733 18,109 973 141 Issued in denominations of less than $100,000 2,770 2,887 745 14?, Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. n.a. n.a. 16,963 1155,,222222 228 143 Money market deposit accounts (MMDAs) 270,567 176,087 29,208 144 Other savings deposits (excluding MMDAs) 140,922 126,684 30,941 145 Total time deposits of less than $100,000 242,460 344,395 109,060 146 Time certificates of deposit of $100,000 or more 100,565 112,274 30,377 147 Open-account time deposits of $100,000 or more 13,821 2,378 899 148 All negotiable order of withdrawal (NOW) accounts 86,168 118,053 40,456 149 9,923 197 n.a. 2,832 6,894 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A94 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, December 31, 1995 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets 3,718,100 2,816,474 2,091,951 724,523 901,626 2 Cash and balances due from depository institutions 229,389 184,775 137,350 47,425 44,613 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 436,530 238,825 178,360 60,465 197,705 4 U.S. Treasury securities 113,262 59,164 41,435 17,729 54,098 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 93,333 45,270 33,702 11,568 48,063 6 Securities issued by states and political subdivisions in the United States 53,145 27,385 20,116 7,269 25,759 7 Mortgage-backed securities (MBS) 154,612 94,586 74,183 20,403 60,026 8 Pass-through securities 92,418 57,826 44,949 12,877 34,592 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 91,332 57,036 44,491 12,545 34,295 10 Other pass-through securities 1,087 790 458 332 297 11 Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS) 62,194 36,760 29,234 7,526 25,434 12 Issued or guaranteed by FNMA, FHLMC, or GNMA 53,710 31,734 25,103 6,631 21,976 13 All other mortgage-backed securities 8,484 5,026 4,131 895 3,458 14 Other debt securities 13,890 7,347 5,110 2,237 6,543 15 Equity securities 8,288 5,071 3,814 1,258 3,217 16 Investments in mutual funds 1,565 762 590 172 804 17 Other equity securities with readily determinable fair values 1,084 375 196 179 709 18 All other equity securities 5,639 3,934 3,028 907 1,704 19 Federal funds sold and securities purchased under agreements to resell 180,150 145,299 100,572 44,727 34,851 20 Total loans- and lease-financing receivables, gross 2,327,645 1,762,976 1,350,937 412,039 564,669 21 LESS: Unearned income on loans 4,362 2,382 1,840 541 1,981 22 Total loans and leases (net of unearned income) 2,323,283 1,760,594 1,349,097 411,497 562,688 Total loans, gross, by category 23 Loans secured by real estate 1,045,251 757,366 585,525 171,841 287,884 24 Construction and land development 68,210 46,112 34,738 11,374 22,098 25 Farmland 23,829 11,140 8,734 2,407 12,689 26 One- to four-family residential properties 621,166 469,786 366,255 103,530 151,380 27 Revolving, open-end loans, extended under lines of credit 79,173 62,321 48,836 13,485 16,851 28 All other loans 541,994 407,465 317,420 90,045 134,529 29 Multifamily (five or more) residential properties 35,722 24,887 18,161 6,727 10,835 30 Nonfarm nonresidential properties 296,323 205,441 157,637 47,804 90,882 31 Loans to depository institutions 58,405 54,547 48,108 6,439 3,858 32 Loans to finance agricultural production and other loans to farmers 39,732 20,388 16,375 4,013 19,344 33 Commercial and industrial loans 532,448 431,975 318,229 113,746 100,473 34 Acceptances of other banks 785 513 210 303 272 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 501,861 366,772 292,944 73,828 135,089 36 Obligations (other than securities) of states and political subdivisions in the United States 18,388 14,726 10,972 3,754 3,662 37 All other loans 77,660 71,246 42,947 28,300 6,414 38 Lease-financing receivables 53,114 45,442 35,628 9,814 7,672 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 18,008 13,908 9,547 4,361 4,100 40 Remaining assets 530,740 473,072 317,025 156,047 57,668 41 Total liabilities 3,370,577 2,556,023 1,901,985 654,038 814,553 42 Total deposits 2,552,022 1,869,259 1,406,313 462,947 682,763 43 Individuals, partnerships, and corporations 2,369,600 1,737,751 1,311,116 426,635 631,849 44 U.S. government 8,074 6,426 5,023 1,403 1,647 45 States and political subdivisions in the United States 109,329 72,036 51,920 20,116 37,293 46 Commercial banks in the United States 29,191 25,962 19,247 6,715 3,229 47 Other depository institutions in the United States 7,881 4,879 3,729 1,150 3,002 48 Certified and official checks 19,404 14,497 10,666 3,831 4,907 49 Banks in foreign countries, foreign governments, and foreign official institutions 8,545 7,708 4,612 3,097 837 50 Total transaction accounts 821,385 623,049 461,049 162,000 198,337 51 Individuals, partnerships, and corporations 714,619 538,917 399,811 139,106 175,701 52 U.S. government 7,134 5,776 4,438 1,338 1,358 53 States and political subdivisions in the United States 42,899 29,499 21,464 8,035 13,400 54 Commercial banks in the United States 25,494 23,830 18,102 5,729 1,663 55 Other depository institutions in the United States 3,936 3,269 2,362 907 667 56 Certified and official checks 19,404 14,497 10,666 3,831 4,907 57 Banks in foreign countries, foreign governments, and foreign official institutions 7,901 7,261 4,206 3,054 640 58 Demand deposits (included in total transaction accounts) 573,063 454,901 336,886 118,015 118,161 59 Individuals, partnerships, and corporations 491,391 386,380 287,111 99,269 105,011 60 U.S. government 7,038 5,715 4,389 1,326 1,323 61 States and political subdivisions in the United States 17,918 13,959 10,057 3,901 3,959 62 Commercial banks in the United States 25,489 23,827 18,098 5,729 1,662 63 Other depository institutions in the United States 3,928 3,267 2,360 906 661 64 Certified and official checks 19,404 14,497 10,666 3,831 4,907 65 Banks in foreign countries, foreign governments, and foreign official institutions 7,896 7,257 4,204 3,053 639 66 Total nontransaction accounts 1,730,637 1,246,211 945,264 300,947 484,426 67 Individuals, partnerships, and corporations 1,654,981 1,198,834 911,305 287,529 456,147 940 651 586 65 289 69 States and political subdivisions in the United States 66,430 42,537 30,456 12,081 23,893 70 Commercial banks in the United States 3,697 2,131 1,145 986 1,566 71 Other depository institutions in the United States 3,945 1,610 1,367 243 2,335 72 Banks in foreign countries, foreign governments, and foreign official institutions 644 447 405 42 197 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A95 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, December 31, 1995 Millions of dollars except as noted Members IItteemm TToottaall NNoonn-mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 322,315 269,687 193,875 75,812 52,628 74 Demand notes issued to the U.S. Treasury 11,868 10,890 6,596 4,293 979 75 Other borrowed money 236,717 188,033 139,468 48,566 48,684 76 Banks liability on acceptances executed and outstanding 12,283 11,716 8,727 2,989 568 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 81,017 68,265 50,479 17,787 12,752 78 Remaining liabilities 154,354 138,174 96,528 41,645 16,181 MEMO 79 Trading assets at large banks' 66,246 65,264 38,982 26,282 982 80 U.S. Treasury securities (domestic offices) 15,409 15,282 9,180 6,102 127 81 U.S. government agency corporation obligations 2,403 2,303 1,750 553 100 82 Securities issued by states and political subdivisions in the United States 984 961 586 376 22 83 Mortgage-backed securities 2,734 2,697 471 2,226 36 84 Other debt securities 1,755 1,726 700 1,025 30 85 Certificates of deposit 1,506 1,506 705 801 0 86 Commercial paper 156 61 61 0 95 87 Bankers acceptances 1,779 1,574 1,221 354 204 88 Other trading assets 4,531 44,,445588 2,491 1,966 74 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 34,989 34,695 21,817 12,878 294 90 Total individual retirement (IRA) and Keogh plan accounts 150,546 110,152 84,673 25,479 40,394 91 Total brokered deposits 45,717 31,238 23,158 8,079 14,479 92 Fully insured brokered deposits 38,816 26,704 20,454 6,250 12,112 93 Issued in denominations of less than $100,000 66,,440033 44,,332211 33,,993399 382 22,,008822 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 32,413 22,383 16,515 5,868 10,030 95 Money market deposit accounts (MMDAs) 475,861 379,824 296,358 83,465 96,038 96 Other savings deposits 298,548 220,026 158,547 61,479 78,522 97 Total time deposits of less than $100,000 695,915 473,423 363,363 110,060 222,492 98 Time certificates of deposit of $100,000 or more 243,215 158,796 120,387 38,409 84,420 99 Open-account time deposits of $100,000 or more 17,097 14,142 6,610 7,533 2,955 100 All negotiable order of withdrawal (NOW) accounts 244,677 166,263 122,632 43,631 78,414 101 Number of banks 9,923 3,902 2,861 1,041 6,021 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $ 1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A96 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, March 31, 1996 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToo al Total Foreign Domestic Over 100 Under 100 1 Total assets3 4,281,164 2,521,259 675,131 1,935,796 1,452,890 307,015 2 Cash and balances due from depository institutions 272,995 185,872 74,063 111,809 72,032 15,091 4 3 Ca C sh a s i h te m ite s m i s n i p n r o p c r e o s c s e s o s f o c f o l c l o ec ll t e io ct n i , o n u n a p n o d s t u e n d p d o e st b e i d ts , d a e n b d it s c urrency and coin • • n 8 . 6 a , . 2 16 n 2 . , a 1 . 1 0 6 8 4 4 , ,1 4 0 2 5 6 4 2 0 7 , , 0 13 0 1 0 T F 5 Currency and coin n.a. n.E . 19,679 12,870 1 6 Balances due from depository institutions in the United States n.a. 21,678 11,965 9,713 18,795 n.a. 7 8 B B a a l l a a n n c c e e s s d d u u e e f f r r o o m m b F a e n d k e s ra l i n R f e o s r e e r i v g e n B co a u n n k t s r ies and foreign central banks 6 11 3 44 , ,, 4 55 2 55 6 33 59, 1 ? 0 8 7 2 11 3 44 , ,, 5 44 4 44 5 66 11 3 00 , ,, 1 00 6 77 7 00 i1 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 7,415 15,680 5,967 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 802,004 359,823 42,034 317,788 347,561 94,620 11 U.S. Treasury securities 189,584 75,797 876 74,922 87,101 26,685 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 120,501 26,114 100 26,013 64,162 30,225 13 Issued by U.S. government agencies 6,161 2,398 n.i . n.a. 2,621 1,142 14 Issued by U.S. government-sponsored agencies 114,339 23,716 n.<t . n.a. 61,541 29,082 15 Securities issued by states and political subdivisions in the United States 73,764 20,165 292 19,873 38,852 14,748 16 General obligations 55,497 14,682 n.a. n.a. 30,004 10,811 17 Revenue obligations 17,627 5,276 n.a. n.a. 8,506 3,845 18 Industrial development and similar obligations 640 207 n.a. n.a. 342 91 19 Mortgage-backed securities (MBS) 332,794 174,670 3,747 170,923 138,447 19,677 20 Pass-through securities 210,524 114,597 3,709 110,889 84,038 11,889 21 Guaranteed by GNMA 78,350 52,485 n.a. n.a. 22,336 3,529 22 Issued by FNMA and FHLMC 129,518 60,412 n. i. n.a. 60,799 8,307 23 Privately issued 2,656 1,701 0 1,701 902 53 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 122,269 60,072 38 60,034 54,409 7,788 25 Issued or guaranteed by FNMA, FHLMC or GNMA 96,363 43,160 8 43,152 45,873 7,331 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 4,366 2,504 n.a. n.a. 1,537 325 27 All other mortgage-backed securities 21,540 14,409 n.a. n.a. 6,999 133 28 Other debt securities 66,246 52,748 35,610 17,138 11,554 1,944 29 Other domestic debt securities n.a. 13,890 402 13,489 11,160 n.a. 30 Foreign debt securities n.a. 38,858 35,208 3,649 393 n.a. 31 Equity securities 19,115 10,329 1,409 8,920 7,445 1,341 32 Investments in mutual funds 2,523 771 60 711 1,309 442 33 Other equity securities with readily determinable fair value 4,361 3,228 577 2,650 1,036 97 34 All other equity securities 12,232 6,330 772 5,559 5,100 802 35 Federal funds sold and securities purchased under agreements to resell 172,753 101,912 296 101,616 54,899 15,942 36 Federal funds sold 148,952 81,604 n. i. n.a. 51,502 15,846 37 Securities purchased under agreements to resell 23,801 20,308 n.a. n.a. 3,398 96 38 Total loans- and lease-financing receivables, gross 2,622,137 1,521,693 287,063 1,234,630 927,564 172,880 39 LESS: Unearned income on loans 5,135 2,202 1,039 1,163 2,111 822 40 Total loans and leases (net of unearned income) 2,617,002 1,519,491 286,025 1,233,467 925,453 172,058 41 LESS: Allowance for loan and lease losses 52,636 32,574 n.a. n.a. 17,366 2,696 42 LESS: Allocated transfer risk reserves 110 110 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,564,256 1,486,807 n.a. n.a. 908,087 169,362 Total loans, gross, by category 44 Loans secured by real estate 1,081,636 517,226 27,625 489,601 467,542 9966,,886688 45 Construction and land development 27,231 35,093 6,816 46 Farmland T 2,417 10,518 10,996 47 One- to four-family residential properties I 314,293 260,077 50,528 48 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 45,884 30,153 2,375 49 All other loans I 1 268,409 229,924 48,154 5 5 0 1 M No u n lt f i a f r a m m i n ly o n ( r f e iv si e d o en r t m ia o l r p e r ) o r p e e s r i t d ie e s n tial properties r T1 1 12 1 8 7 , , 1 5 3 2 4 6 14 1 4 7 , , 5 3 1 4 2 2 2 2 6, , 3 1 7 5 1 6 52 Loans to depository institutions 95,036 89,221 38,358 50,863 5,549 266 53 Commercial banks in the United States n a. 41,779 1,483 40,297 4,992 n.a. 54 Other depository institutions in the United States n a. 6,311 108 6,203 289 n.a. 55 Banks in foreign countries n.a. 41,130 36,767 4,363 268 n.a. 56 Loans to finance agricultural production and other loans to farmers 37,902 5,878 33 5,576 14,606 17,417 57 Commercial and industrial loans 672,309 491,563 129,122 362,441 151,823 28,923 58 U.S. addressees (domicile) n.a. 383,386 24,432 358,954 151,260 n.a. 59 Non-U.S. addressees (domicile) n.a. 108,177 104,691 3,487 562 n.a. 60 Acceptances of other banks 2,125 1,750 1,283 466 262 113 61 U.S. banks n.a. 244 4 239 n.a. n.a. 62 Foreign banks n.a. 1,506 1,279 227 n.a. n.a. 63 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 521,498 235,510 31,191 204,319 259,122 26,866 64 Credit cards and related plans 204,656 86,866 n. a. n.a. 116,307 1,482 65 Other (includes single payment and installment) 316,843 148,644 n.a. n.a. 142,815 25,384 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 18,229 9,392 33 9,359 7,936 901 132,589 121,803 55,198 66,605 9,907 879 68 Loans to foreign governments and official institutions n.a. 11,604 10,889 716 19 n.a. 69 Other loans n.a. 110,198 44,309 65,889 9,888 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n. a. 17,640 1,947 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n a. 48,250 7,941 n.a. 72 Lease-financing receivables 60,813 49,350 3,951 45,399 10,816 647 73 Assets held in trading accounts 208,143 206,588 1,509 1 74 Premises and fixed assets (including capitalized leases) 61,284 33,805 1 22,138 5,341 75 Other real estate owned 6,368 3,528 n.a. 2,265 576 76 Investments in unconsolidated subsidiaries and associated companies 4,791 4,365 I 400 25 77 Customers' liability on acceptances outstanding 16,974 16,525 n.a. T 429 19 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 17,963 n.a. n.a. 79 Intangible assets 31,529 19,421 n.a. 11,395 714 80 Other assets 140,065 102,613 n.a. 32,175 5,278 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A97 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September3 0, 1994 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 4,281,164 2,521,259 n.a. n.a. 1,452,890 307,015 82 Total liabilities 3,929,775 2,332,862 675,131 1,747,399 1,321,749 275,164 83 Total deposits 3,003,840 1,632,344 454,255 1,178,089 1,104,325 267,172 84 Individuals, partnerships, and corporations 2,660,614 1,386,665 287,025 1,099,640 1,030,991 242,958 85 U.S. government n.a. n.a. n.a. 3,480 1,860 342 86 States and political subdivisions in the United States n.a. n.a. n.a. 38,545 51,843 20,000 87 Commercial banks in the United States 53,594 46,080 29,659 16,421 6,620 894 88 Other depository institutions in the United States n.a. n.a. n a. 3,128 3,339 1,219 89 Banks in foreign countries n.a. 9 ,786 92,603 6,183 189 n.a. 90 Foreign governments and official institutions n.a. 39,698 38,705 993 21 n.a. 91 Certified and official checks 17,581 : ,669 778 7,892 7,181 1,730 92 Residual4 272,051 52,445 5,486 n.a. n.a. 28 93 371,954 300,392 77,006 94 Individuals, partnerships, and corporations 321,576 266,414 67,266 95 2,933 1,483 231 96 States and political subdivisions in the United States 13,890 17,516 7,262 97 Commercial banks in the United States 16,421 6,620 384 98 Other depository institutions in the United States 2,402 986 106 99 Banks in foreign countries 6,183 189 n.a. 100 Foreign governments and official institutions 657 3 n.a. 101 Certified and official checks 7,892 7,181 1,730 102 Residual4 n.a. n.a. 25 103 Demand deposits (included in total transaction accounts) 303,517 188,784 38,117 104 Individuals, partnerships, and corporations 258,938 166,521 34,124 105 U.S. government 2,364 1,428 221 106 States and political subdivisions in the United States 8,665 5,865 1,532 107 Commercial banks in the United States 16,421 6,615 384 108 Other depository institutions in the United States n.a. n.a. n.a. 2,401 981 102 109 Banks in foreign countries 6,181 189 n.a. NO Foreign governments and official institutions 653 3 n.a. 111 Certified and official checks 7,892 7,181 1,730 112 Residual4 n.a. n.a. 25 113 Total nontransaction accounts 806,135 803,932 190,166 114 Individuals, partnerships, and corporations 778,064 764,577 175,692 115 U.S. government 547 378 110 116 States and political subdivisions in the United States 24,655 34,327 12,738 117 Commercial banks in the United States 1,671 2,140 510 118 U.S. branches and agencies of foreign banks 0 0 n.a. 119 Other commercial banks in the United States 0 0 n.a. 120 Other depository institutions in the United States 726 2,353 1,113 121 Banks in foreign countries 136 141 n.a. 122 Foreign branches of other U.S. banks 0 0 n.a. 123 Other banks in foreign countries 0 0 n.a. 124 Foreign governments and official institutions 336 18 n.a. 125 Residual n.a. n.a. 3 126 Federal funds purchased and securities sold under agreements to repurchase 317,728 225,943 1,034 224,910 89,263 2,521 127 241,882 178,226 n a. n.a. 62,623 1,033 128 Securities sold under agreements to repurchase 75,845 47,717 n a. n.a. 26,640 1,488 129 Demand notes issued to the U.S. Treasury 12,168 9,524 0 9,524 2,463 182 130 Trading liabilities 132,685 132,575 n.a. n.a. 110 0 131 284,466 183,705 59,004 124,701 98,401 2,360 132 Banks' liability on acceptances executed and outstanding 17,034 16,585 4,190 12,395 429 20 133 Notes and debentures subordinated to deposits 45,147 40,667 n a. n.a. 4,459 22 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n a. n.a. n a. 71,705 n.a. n.a. 135 116,706 91,518 n.a. n.a. 22,300 2,888 136 Total equity capital 351,384 188,397 n a. n.a. 131,137 31,850 MEMO 137 Holdings of commercial paper included in total loans, gross 338877 7733 331144 882244 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 66,234 69,979 15,046 139 Total brokered deposits 23,678 20,811 989 140 Fully insured brokered deposits 18,105 17,276 955 141 Issued in denominations of less than $100,000 1,647 3,152 752 147 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n a. n.a. n a. 16,458 14,124 202 143 Money market deposit accounts (MMDAs) 296,396 190,800 27,053 144 Other savings deposits (excluding MMDAs) 143,685 138,659 29,792 145 Total time deposits of less than $100,000 246,014 353,535 103,322 146 Time certificates of deposit of $100,000 or more 106,726 118,333 29,183 147 Open-account time deposits of $100,000 or more 13,313 2,606 816 148 All negotiable order of withdrawal (NOW) accounts 67,891 109,765 37,869 149 Number of banks 9,822 193 n.a. 2,970 6,659 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A98 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, March 31, 1996 Millions of dollars except as noted Members NNoonn-- IItteemm mmeemmbbeerrss Total National State 1 Total assets 3,695,701 2,800,006 2,081,304 718,703 895,695 2 Cash and balances due from depository institutions 198,932 158,037 120,248 37,790 40,895 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 442,181 243,557 181,381 62,176 198,624 4 U.S. Treasury securities 113,786 60,176 42,675 17,502 53,610 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 94,387 46,020 34,232 11,788 48,367 6 Securities issued by states and political subdivisions in the United States 53,599 27,728 20,092 7,635 25,871 7 Mortgage-backed securities (MBS) 158,124 97,077 75,373 21,704 61,046 8 Pass-through securities 95,927 60,267 46,726 13,541 35,660 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 94,971 59,564 46,315 13,249 35,407 10 Other pass-through securities 956 703 411 292 253 11 Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS) 62,197 36,811 28,647 8,163 25,386 12 Issued or guaranteed by FNMA, FHLMC, or GNMA 53,203 31,602 24,645 6,957 21,602 13 All other mortgage-backed securities 8,994 5,209 4,003 1,206 3,785 14 Other debt securities 13,498 7,173 5,029 2,144 6,326 8,787 5,383 3,979 1,404 3,404 16 Investments in mutual funds 1,752 859 628 231 893 17 Other equity securities with readily determinable fair values 1,133 431 231 200 702 18 All other equity securities 5,902 4,093 3,121 972 1,809 19 Federal funds sold and securities purchased under agreements to resell 172,458 138,088 95,598 42,490 34,369 20 Total loans- and lease-financing receivables, gross 2,335,074 1,771,066 1,358,439 412,627 564,007 21 LESS: Unearned income on loans 4,096 2,193 1,688 504 1,903 22 Total loans and leases (net of unearned income) 2,330,978 1,768,873 1,356,751 412,122 562,104 Total loans, gross, by category 23 Loans secured by real estate 1,054,011 765,517 592,120 173,397 288,494 24 Construction and land development 69,140 46,798 35,298 11,500 22,343 23,931 11,200 8,702 2,498 12,731 26 One- to four-family residential properties 624,899 474,196 369,902 104,294 150,702 27 Revolving, open-end loans, extended under lines of credit 78,412 61,806 48,420 13,386 16,605 28 All other loans 546,487 412,390 321,482 90,908 134,097 29 Multifamily (five or more) residential properties 37,024 26,060 19,602 6,458 10,963 30 Nonfarm nonresidential properties 299,017 207,263 158,616 48,646 91,755 31 Loans to depository institutions 56,678 52,654 45,683 6,971 4,025 32 Loans to finance agricultural production and other loans to farmers 37,599 19,236 15,414 3,821 18,363 33 Commercial and industrial loans 543,187 440,523 324,211 116,312 102,664 34 Acceptances of other banks 842 481 206 275 361 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 490,307 358,219 288,232 69,987 132,088 36 Obligations (other than securities) of states and political subdivisions in the United States 18,196 14,549 10,824 3,725 3,647 77,391 70,728 43,037 27,690 6,664 38 Lease-financing receivables 56,862 49,161 38,712 10,449 7,701 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 17,963 15,397 11,067 4,330 2,566 533,189 476,053 316,259 159,794 57,136 41 Total liabilities 3,344,313 2,536,178 1,888,633 647,545 808,134 2,549,585 1,866,833 1,408,015 458,818 682,752 43 Individuals, partnerships, and corporations 2,373,589 1,741,767 1,317,663 424,104 631,822 5,682 4,662 3,885 776 1,020 45 States and political subdivisions in the United States 110,388 72,108 50,761 21,347 38,280 46 Commercial banks in the United States 23,935 21,743 16,704 5,039 2,192 7,686 4,660 3,720 940 3,026 48 Certified and official checks 16,803 12,304 9,276 3,029 4,499 49 Banks in foreign countries, foreign governments, and foreign official institutions 7,414 6,948 4,059 2,888 466 50 Total transaction accounts 749,352 560,663 421,178 139,484 188,689 51 Individuals, partnerships, and corporations 655,257 487,867 367,415 120,451 167,391 4,647 3,872 3,158 714 776 53 States and political subdivisions in the United States 38,668 25,633 18,919 6,714 13,035 54 Commercial banks in the United States 23,425 21,563 16,571 4,992 1,862 55 Other depository institutions in the United States 3,494 2,815 2,117 698 679 56 Certified and official checks 16,803 12,304 9,276 3,029 4,499 57 Banks in foreign countries, foreign governments, and foreign official institutions 7,057 6,609 3,724 2,886 448 58 Demand deposits (included in total transaction accounts) 530,419 418,838 313,168 105,670 111,581 59 Individuals, partnerships, and corporations 459,583 360,068 269,841 90,226 99,516 4,014 3,274 2,566 708 740 61 States and political subdivisions in the United States 16,062 12,213 9,081 3,132 3,849 62 Commercial banks in the United States 23,420 21,561 16,569 4,992 1,859 63 Other depository institutions in the United States 3,484 2,812 2,114 698 672 64 Certified and official checks 16,803 12,304 9,276 3,029 4,499 65 Banks in foreign countries, foreign governments, and foreign official institutions . 7,052 6,605 3,720 2,885 447 1,800,234 1,306,171 986,837 319,334 494,063 67 Individuals, partnerships, and corporations 1,718,332 1,253,901 950,248 303,653 464,431 1,035 790 728 62 245 69 States and political subdivisions in the United States 71,720 46,475 31,842 14,632 25,245 70 Commercial banks in the United States 4,321 2,603 1,886 717 1,718 71 Other depository institutions in the United States 4,192 1,846 1,603 242 2,346 72 Banks in foreign countries, foreign governments, and foreign official institutions 357 338 336 3 18 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A99 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, March 31, 1996 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 316,694 269,321 190,421 78,899 47,373 74 Demand notes issued to the U.S. Treasury 12,168 10,911 6,747 4,163 1,258 75 Other borrowed money 225,462 178,335 132,894 45,441 47,127 76 Banks liability on acceptances executed and outstanding 12,844 12,288 9,515 2,772 556 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 71,705 58,655 43,907 14,748 13,051 78 Remaining liabilities 155,854 139,836 97,133 42,703 16,018 MEMO 79 Trading assets at large banks5 68,456 67,596 41,301 26,294 860 80 U.S. Treasury securities (domestic offices) 19,471 19,310 12,551 6,758 161 81 U.S. government agency corporation obligations 1,950 1,910 1,697 213 40 82 Securities issued by states and political subdivisions in the United States 545 536 352 184 9 83 Mortgage-backed securities 3,188 3,156 580 2,576 32 84 Other debt securities 1,764 1,763 767 996 1 85 Certificates of deposit 1,420 1,420 785 635 0 86 Commercial paper 206 85 85 0 120 87 Bankers acceptances 1,922 1,738 1,197 541 183 88 Other trading assets 5,144 5,064 2,766 2,298 81 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 32,846 32,613 20,521 12,092 233 90 Total individual retirement (IRA) and Keogh plan accounts 151,259 110,739 85,008 25,731 40,520 91 Total brokered deposits 45,479 31,368 22,175 9,193 14,111 92 Fully insured brokered deposits 36,336 25,071 18,763 6,308 11,265 93 Issued in denominations of less than $100,000 55,,555522 33,,440099 33,,112299 280 2,143 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 30,784 21,662 15,634 6,028 9,122 95 Money market deposit accounts (MMDAs) 514,249 415,005 321,676 93,330 99,244 96 Other savings deposits 312,137 231,654 166,258 65,396 80,482 97 Total time deposits of less than $100,000 702,871 479,516 368,835 110,681 223,355 98 Time certificates of deposit of $100,000 or more 254,242 166,256 124,008 42,248 87,986 99 Open-account time deposits of $100,000 or more 16,735 13,739 6,060 7,679 2,996 100 All negotiable order of withdrawal (NOW) accounts 215,525 140,149 106,649 33,501 75,375 101 Number of banks 9,822 3,868 2,822 1,046 5,954 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A100 Special Tables • November 1996 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 1996 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets3 4,369,085 2,648,044 705,746 2,045,723 1,413,099 307,942 2 Cash and balances due from depository institutions 287,814 203,621 79,028 124,592 69,076 15,117 3 Cash items in process of collection, unposted debits, and currency and coin • 96,657 2,770 93,887 39,180 T 4 Cash items in process of collection and unposted debits n.a. n.a. 72,348 26,879 i 5 Currency and coin n.a. n.a. 21,539 12,301 6 Balances due from depository institutions in the United States n a. 22,386 11,711 10,675 17,813 n.a. 7 Balances due from banks in foreign countries and foreign central banks 69,346 64,416 4,930 2,511 I 8 Balances due from Federal Reserve Banks 1155,,223322 132 15,099 9,573 1 MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 8,326 15,017 5,977 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 796,940 361,098 40,761 320,336 341,793 94,049 11 U.S. Treasury securities 185,637 75,651 1,031 74,620 83,755 26,231 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 123,657 27,065 96 26,968 65,748 30,845 13 Issued by U.S. government agencies 5,741 2,303 n.a. n.a. 2,259 1,179 14 Issued by U.S. government-sponsored agencies 117,916 24,762 n.a. n.a. 63,488 29,666 15 Securities issued by states and political subdivisions in the United States 73,110 19,501 262 19,239 38,836 14,773 16 General obligations 54,905 13,977 n.a. n.a. 30,077 10,850 17 Revenue obligations 17,534 5,215 n.a. n.a. 8,479 3,841 18 Industrial development and similar obligations 671 309 n.a. n.a. 280 81 19 Mortgage-backed securities (MBS) 330,470 175,784 3,832 171,952 135,648 19,037 20 Pass-through securities 214,870 118,072 3,805 114,268 85,218 11,580 21 Guaranteed by GNMA 72,767 47,619 n.a. n.a. 21,722 3,427 22 Issued by FNMA and FHLMC 139,653 68,911 n.a. n.a. 62,639 8,103 23 Privately issued 2,450 1,543 0 1,543 857 50 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 115,599 57,711 27 57,684 50,431 7,458 25 Issued or guaranteed by FNMA, FHLMC or GNMA 90,124 40,908 0 40,908 42,200 7,016 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 3,731 1,899 n.a. n.a. 1,534 299 27 All other mortgage-backed securities 21,745 14,905 n.a. n.a. 6,697 143 28 Other debt securities 64,682 52,254 34,362 17,892 10,618 1,810 29 Other domestic debt securities n.a. 14,738 457 14,281 9,961 n.a. 30 Foreign debt securities n.a. 37,516 33,905 3,611 657 n.a. 31 Equity securities 19,383 10,843 1,179 9,664 7,187 1,353 32 Investments in mutual funds 2,365 970 77 893 997 398 33 Other equity securities with readily determinable fair value 4,585 3,363 524 2,839 1,119 102 34 All other equity securities 12,433 6,510 578 5,932 5,070 853 35 Federal funds sold and securities purchased under agreements to resell 159,691 109,453 339 109,115 38,592 11,645 36 Federal funds sold 140,047 93,157 n.a. n.a. 35,340 11,550 37 Securities purchased under agreements to resell 19,643 16,296 n.a. n.a. 3,251 95 38 Total loans- and lease-financing receivables, gross 2,679,675 1,589,359 301,039 1,288,321 912,013 178,302 39 LESS: Unearned income on loans 5,071 2,098 1,023 1,075 2,148 825 40 Total loans and leases (net of unearned income) 2,674,604 1,587,261 300,016 1,287,245 909,865 177,478 41 LESS: Allowance for loan and lease losses 53,290 33,633 n.a. n.a. 16,954 2,703 42 LESS: Allocated transfer risk reserves 80 80 n.a. n.a. 0 0 43 EQUALS: Total loans and leases, net 2,621,234 1,553,548 n.a. n.a. 892,911 174,774 Total loans, gross, by category 44 Loans secured by real estate 1,095,265 536,987 28,021 508,966 458,766 99,512 45 Construction and land development I • T T • 28,768 35,122 7,225 46 Farmland 1 1 2,559 10,692 11,310 47 One- to four-family residential properties 325,251 252,648 51,637 48 Revolving, open-end loans, extended under lines of credit n.a. n.1a . n.1a . 49,344 29,634 2,464 49 All other loans 1 1 275,907 223,013 49,173 50 Multifamily (five or more) residential properties r 18,016 17,178 2,200 51 Nonfarm nonresidential properties • T 134,372 143,127 27,139 52 Loans to depository institutions 102,034 95,879 41,068 54,811 5,980 175 53 Commercial banks in the United States n.a. 45,780 2,377 43,403 5,405 n.a. 54 Other depository institutions in the United States n.a. 6,372 68 6,304 397 n.a. 55 Banks in foreign countries n.a. 43,726 38,623 5,104 178 n.a. 56 Loans to finance agricultural production and other loans to farmers 41,264 6,811 50 6,473 15,451 19,001 57 Commercial and industrial loans 68 i,644 503,507 134,187 369,320 148,440 29,697 58 U.S. addressees (domicile) n.a. 392,452 26,584 365,868 147,900 n.a. 59 Non-U.S. addressees (domicile) n.a. 111,055 107,603 3,452 540 n.a. 60 Acceptances of other banks 1,954 1,684 1,255 429 180 90 61 U.S. banks n.a. 219 0 219 n.a. n.a. 62 Foreign banks n.a. 1,465 1,255 210 n.a. n.a. 63 Loans to individuals for household, family, and other persona] expenditures (includes purchased paper) 534,509 251,979 31,216 220,764 255,135 27,394 64 Credit cards and related plans 212,107 89,344 n.a. n.a. 121,254 1,509 65 Other (includes single payment and installment) 322,402 162,636 n.a. n.a. 133,881 25,885 66 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 18,145 9,782 50 9,731 7,455 909 67 All other loans 139,912 129,378 61,004 68,374 9,655 879 68 Loans to foreign governments and official institutions n.a. 11,722 10,185 1,537 27 n.a. 69 Other loans n.a. 117,656 50,819 66,837 9,628 n.a. 70 Loans for purchasing and carrying securities n.a. n.a. n.a. 17,277 1,862 n.a. 71 All other loans (excludes consumer loans) n.a. n.a. n.a. 49,560 7,766 n.a. 77 Lease-financing receivables 64,949 53,352 3,899 49,453 10,951 646 7 7 4 3 P A r s e s m et i s s e h s e l a d n d in f i t x ra e d d in a g ss e a t c s c o (i u n n c t l s u ding capitalized leases) 2 6 1 2 9, , 1 2 2 0 6 7 21 3 7 5 , , 8 4 8 1 0 2 T F 1 21 1 , , 3 2 8 0 1 0 5,414 1 75 Other real estate owned 5,891 3,298 n.a. 2,055 538 76 Investments in unconsolidated subsidiaries and associated companies 5,773 5,140 1 I 608 25 77 Customers' liability on acceptances outstanding 17,988 17,738 n.a. 1 231 19 78 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. 1 28,986 n.a. n.a. 79 Intangible assets 42,679 28,831 1 n.a. 13,127 722 80 Other assets 149,742 112,025 1 n.a. 32,126 5,591 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A101 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 81 Total liabilities, limited-life preferred stock, and equity capital 4,369,085 2,648,044 n.a. n.a. 1,413,099 307,942 82 Total liabilities 4,006,349 2,446,753 705,743 1,844,435 1,283,531 276,065 3,038,760 1,714,930 461,840 1,253,090 1,056,870 266,961 84 Individuals, partnerships, and corporations 2,686,083 1,458,418 290,140 1,168,278 985,002 242,663 85 U.S. government n.a. n.a. n.a. 6,515 1,869 354 86 States and political subdivisions in the United States n.a. n.a. n.a. 39,782 51,452 20,031 87 Commercial banks in the United States 59,640 52,847 35,787 17,061 5,942 851 88 Other depository institutions in the United States n. a. n.a. n.a. 3,200 3,212 1,231 89 Banks in foreign countries n.a. 93,870 87,033 6,838 196 n.a. 90 Foreign governments and official institutions n.a. 41,136 39,657 1,479 31 n.a. 91 Certified and official checks 18,488 9,393 764 8,629 7,304 1,791 92 Residual4 274,549 59,265 8,460 n.a. n.a. 39 93 Total transaction accounts 393,275 285,765 76,992 94 Individuals, partnerships, and corporations 339,797 251,932 67,059 95 2,590 1,552 260 96 States and political subdivisions in the United States 14,839 17,953 7,430 97 Commercial banks in the United States 17,061 5,942 332 98 Other depository institutions in the United States 2,327 883 104 99 Banks in foreign countries 6,838 196 n.a. 100 Foreign governments and official institutions 1,194 3 n.a. 101 Certified and official checks 8,629 7,304 1,791 102 n.a. n.a. 16 103 Demand deposits (included in total transaction accounts) 331,304 183,672 38,903 104 Individuals, partnerships, and corporations 283,518 161,977 34,857 105 U.S. government 2,569 1,500 250 106 States and political subdivisions in the United States 9,192 5,873 1,558 107 Commercial banks in the United States 17,061 5,938 330 108 Other depository institutions in the United States n.a. n.a. n.a. 2,325 888800 101 109 Banks in foreign countries 6,836 119966 n.a. 110 Foreign governments and official institutions 1,174 3 n.a. 111 Certified and official checks 8,629 7,304 1,791 112 n.a. n.a. 16 113 Total nontransaction accounts 859,815 771,105 189,969 114 Individuals, partnerships, and corporations 828,481 733,070 175,605 115 U.S. government 3,925 317 94 116 States and political subdivisions in the United States 24,943 33,500 12,601 117 Commercial banks in the United States 1,176 1,694 519 118 U.S. branches and agencies of foreign banks 0 0 n.a. 119 Other commercial banks in the United States 0 0 n.a. 120 Other depository institutions in the United States 874 2,328 1,128 121 Banks in foreign countries 132 168 n.a. 122 Foreign branches of other U.S. banks 0 0 n.a. 123 Other banks in foreign countries 0 0 n.a. 124 Foreign governments and official institutions 285 28 n.a. 125 Residual n.a. n.a. 23 126 Federal funds purchased and securities sold under agreements to repurchase 309,331 212,997 982 212,016 92,982 3,352 127 Federal funds purchased 224,622 159,735 n.a. n.a. 63,047 1,840 128 Securities sold under agreements to repurchase 84,710 53,262 n.a. n.a. 29,935 1,512 179 Demand notes issued to the U.S. Treasury 26,958 22,575 0 22,575 4,159 224 130 Trading liabilities 139,994 139,842 n.a. n.a. 152 0 131 Other borrowed money 307,153 200,557 67,848 132,709 103,754 2,842 132 Banks' liability on acceptances executed and outstanding 18,039 17,789 4,590 13,198 231 19 133 Notes and debentures subordinated to deposits 47,586 43,180 n.a. n.a. 4,386 20 134 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 74,438 n.a. n.a. 135 All other liabilities 118,527 94,883 n a. n.a. 20,997 2,646 136 Total equity capital 362,732 201,291 n a. n.a. 129,564 31,876 137 H M o E l M di O n gs of commercial paper included in total loans, gross 222255 3366 118899 556611 n.a. 138 Total individual retirement (IRA) and Keogh plan accounts 69,197 67,353 15,118 139 Total brokered deposits 27,649 19,830 1,028 140 Fully insured brokered deposits 19,171 17,584 990 141 Issued in denominations of less than $100,000 1,749 3,250 775 142 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. n.a. n.a. 17,422 14,333 221166 143 Money market deposit accounts (MMDAs) 317,462 180,413 26,785 144 Other savings deposits (excluding MMDAs) 147,721 133,191 29,553 145 Total time deposits of less than $100,000 260,663 339,140 103,376 146 Time certificates of deposit of $100,000 or more 118,508 115,709 29,426 147 Open-account time deposits of $100,000 or more 15,460 2,652 829 148 All negotiable order of withdrawal (NOW) accounts 61,526 100,293 37,137 149 9,670 187 n.a. 2,881 6,602 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A102 Special Tables • November 1996 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 1996 Millions of dollars except as noted Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 3,766,764 2,884,844 2,203,413 681,431 881,920 2 Cash and balances due from depository institutions 208,786 167,093 131,799 35,294 41,693 3 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 435,842 238,911 182,101 56,811 196,931 4 U.S. Treasury securities 109,986 57,620 41,710 15,909 52,367 5 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 96,592 46,975 35,588 11,387 49,617 6 Securities issued by states and political subdivisions in the United States 53,609 27,760 20,115 7,645 25,848 7 Mortgage-backed securities (MBS) 154,686 94,670 75,073 19,597 60,016 8 Pass-through securities 96,798 61,198 48,683 12,515 35,600 9 Issued or guaranteed by FNMA, FHLMC, or GNMA 95,890 60,534 48,248 12,286 35,356 10 Other pass-through securities 908 664 435 229 244 11 Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS) 57,888 33,472 26,390 7,082 24,416 12 Issued or guaranteed by FNMA, FHLMC, or GNMA 49,216 28,526 22,723 5,803 20,690 13 All other mortgage-backed securities 8,672 4,946 3,667 1,280 3,726 14 Other debt securities 12,429 6,679 5,521 1,158 5,749 15 Equity securities 8,540 5,207 4,093 1,114 3,333 16 Investments in mutual funds 1,396 663 488 175 732 17 Other equity securities with readily determinable fair values 1,222 508 414 94 714 18 All other equity securities 5,923 4,036 3,191 845 1,887 19 Federal funds sold and securities purchased under agreements to resell 159,352 134,944 92,656 42,288 24,408 20 Total loans- and lease-financing receivables, gross 2,378,636 1,815,925 1,441,113 374,812 562,711 21 LESS: Unearned income on loans 4,048 2,294 1,817 477 1,754 22 Total loans and leases (net of unearned income) 2,374,588 1,813,631 1,439,297 374,334 560,957 Total loans, gross, by category 23 Loans secured by real estate 1,067,243 778,192 626,039 152,153 289,051 24 Construction and land development 71,114 47,880 37,286 10,593 23,235 25 Farmland 24,561 11,492 8,989 2,503 13,069 26 One- to four-family residential properties 629,536 479,732 390,776 88,957 149,804 27 Revolving, open-end loans, extended under lines of credit 81,442 65,825 54,280 11,544 15,617 28 All other loans 548,094 413,908 336,495 77,412 134,186 29 Multifamily (five or more) residential properties 37,394 26,251 20,662 5,590 11,143 30 Nonfarm nonresidential properties 304,638 212,837 168,326 44,510 91,802 31 Loans to depository institutions 60,966 57,123 49,760 7,363 3,843 32 Loans to finance agricultural production and other loans to farmers 40,925 20,679 16,654 4,024 20,247 33 Commercial and industrial loans 547,456 450,324 338,880 111,443 97,133 34 Acceptances of other banks 699 365 159 206 334 35 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 503,293 367,680 308,475 59,206 135,613 36 Obligations (other than securities) of states and political subdivisions in the United States 18,095 14,517 11,287 3,230 3,578 37 All other loans 78,908 73,277 46,545 26,732 5,631 38 Lease-financing receivables 61,050 53,770 43,315 10,455 7,280 39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs 28,986 26,503 9,515 16,987 2,484 40 Remaining assets 559,209 503,761 348,046 155,716 55,448 41 Total liabilities 3,404,031 2,609,119 1,995,371 613,749 794,912 42 Total deposits 2,576,920 1,909,060 1,489,144 419,917 667,860 43 Individuals, partnerships, and corporations 2,395,943 1,777,830 1,389,677 388,153 618,113 44 U.S. government 8,739 7,686 6,925 760 1,053 45 States and political subdivisions in the United States 111,265 73,935 54,566 19,368 37,330 46 Commercial banks in the United States 23,853 21,931 17,474 4,457 1,922 47 Other depository institutions in the United States 7,643 4,787 4,026 761 2,857 48 Certified and official checks 17,724 13,135 10,123 3,012 4,589 49 Banks in foreign countries, foreign governments, and foreign official institutions 8,583 8,090 5,083 3,007 492 50 Total transaction accounts 756,031 575,441 447,781 127,660 180,590 51 Individuals, partnerships, and corporations 658,788 499,257 389,685 109,573 159,531 52 U.S. government 4,402 3,570 2,852 718 832 53 States and political subdivisions in the United States 40,221 27,208 20,773 6,434 13,013 54 Commercial banks in the United States 23,334 21,738 17,332 4,406 1,596 55 Other depository institutions in the United States 3,314 2,746 2,234 512 568 56 Certified and official checks 17,724 13,135 10,123 3,012 4,589 57 Banks in foreign countries, foreign governments, and foreign official institutions 8,247 7,787 4,782 3,005 461 58 Demand deposits (included in total transaction accounts) 553,879 445,513 346,809 98,704 108,365 59 Individuals, partnerships, and corporations 480,352 383,684 299,395 84,290 96,668 60 U.S. government 4,319 3,523 2,811 711 797 61 States and political subdivisions in the United States 16,623 12,924 10,155 2,769 3,699 62 Commercial banks in the United States 23,330 21,737 17,331 4,406 1,592 63 Other depository institutions in the United States 3,306 2,744 2,233 512 562 64 Certified and official checks 17,724 13,135 10,123 3,012 4,589 65 Banks in foreign countries, foreign governments, and foreign official institutions 8,225 7,766 4,762 3,004 459 66 Total nontransaction accounts 1,820,889 1,333,619 1,041,362 292,257 487,270 67 Individuals, partnerships, and corporations 1,737,156 1,278,573 999,992 278,581 458,583 68 U.S. government 4,336 4,116 4,074 42 221 69 States and political subdivisions in the United States 71,044 46,727 33,793 12,934 24,317 70 Commercial banks in the United States 3,389 1,616 1,189 427 1,773 71 Other depository institutions in the United States 4,329 2,041 1,791 250 2,289 72 Banks in foreign countries, foreign governments, and foreign official institutions 335 304 301 2 32 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A103 4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 1994 Millions of dollars except as noted Members IItteemm TToottaall NNoonn-mmeemmbbeerrss Total National State 73 Federal funds purchased and securities sold under agreements to repurchase 308,350 257,413 182,875 74,538 50,937 74 Demand notes issued to the U.S. Treasury 26,958 24,922 14,053 10,869 2,036 75 Other borrowed money 239,305 190,792 146,550 44,242 48,514 76 Banks liability on acceptances executed and outstanding 13,448 13,212 10,359 2,853 236 77 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs 74,438 64,189 46,896 17,293 10,249 78 Remaining liabilities 164,611 149,530 105,494 44,036 15,081 MEMO 79 Trading assets at large banks5 66,016 65,493 39,607 25,886 523 80 U.S. Treasury securities (domestic offices) 15,312 15,208 9,944 5,264 104 81 U.S. government agency corporation obligations 1,490 1,433 1,306 127 58 82 Securities issued by states and political subdivisions in the United States 958 946 729 217 12 83 Mortgage-backed securities 3,464 3,454 539 2,915 10 84 Other debt securities 2,310 2,308 1,197 1,111 2 85 Certificates of deposit 1,452 1,452 480 972 0 86 Commercial paper 312 173 173 0 139 87 Bankers acceptances 1,681 1,657 1,014 643 24 88 Other trading assets 4,837 4,740 2,603 2,137 96 89 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 34,200 34,122 21,622 12,499 78 90 Total individual retirement (IRA) and Keogh plan accounts 151,667 111,799 88,777 23,022 39,869 91 Total brokered deposits 48,507 34,098 23,939 10,160 14,408 92 Fully insured brokered deposits 37,745 26,012 18,278 7,734 11,733 93 Issued in denominations of less than $100,000 55,,777744 33,,448811 22,,999955 486 22,,229933 94 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 31,971 22,531 15,283 7,248 9,440 95 Money market deposit accounts (MMDAs) 524,660 426,096 343,399 82,697 98,565 96 Other savings deposits 310,465 232,454 172,672 59,782 78,011 97 Total time deposits of less than $100,000 703,180 481,408 380,130 101,278 221,772 98 Time certificates of deposit of $100,000 or more 263,644 177,614 137,253 40,362 86,029 99 Open-account time deposits of $100,000 or more 18,940 16,046 7,908 8,138 2,894 100 All negotiable order of withdrawal (NOW) accounts 198,956 128,202 99,521 28,681 70,754 101 Number of banks 9,670 3,787 2,764 1,023 5,883 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, foreign offices, the inapplicability of certain items to banks that have only domestic offices or were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) the absence of detail on a fully consolidated basis for banks that have foreign offices. "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were 1. All transactions between domestic and foreign offices of a bank are reported in "net due less than $100 million. (These banks file the FFIEC 034 Call Report.) from" and "net due to" lines. All other lines represent transactions with parties other than the 3. Because the domestic portion of allowances for loan and lease losses and allocated domestic and foreign offices of each bank. Because these intraoffice transactions are nullified transfer risk reserves are not reported for banks with foreign offices, the components of total by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets (domestic) do not sum to the actual total (domestic). assets and liabilities respectively of the domestic and foreign offices. 4. "Residual" equals the sum of the "n.a." categories listed above it. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and 5. Components of "Trading assets at large banks" are reported only by banks with either possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corpora- total assets of $ 1 billion or more or with $2 billion or more in the par/notional amount of their tions wherever located; and IBFs. off-balance-sheet derivative contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A104 Special Tables • November 1996 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 19961 Commercial and industrial loans Type a of n d l o m an a turity (t A ho m u l o o s u a a n n n s d t s o f o f ( A th v o e u ra sa g n e ds s iz o e f W m a a v e t i e u g r r h a i g t t e y e d 2 Wei L g 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 dollars) dollars) average collateral ment (percent) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 16,837,231 10,130 5.85 2 One month or less (excluding overnight) 8,772,798 1,076 6.41 22.0 82.5 5.3 3 Fixed rate 6,455,170 2,428 6.24 14.6 77.9 5.2 4 Floating rate 2,317,629 422 6.89 42.4 95.4 5.5 5 More than one month and less than one year 14,240,307 233 152 7.37 41.5 85.6 7.8 6 Fixed rate 6,091,191 385 99 6.81 34.8 91.9 9.6 7 Floating rate 8,149,116 180 191 7.78 46.4 80.9 6.4 8 Demand7 14,967,968 331 7.04 43.1 51.2 6.7 9 Fixed rate 5,409,840 1,625 5.74 9.6 33.4 9.5 10 Floating rate 9,558,128 228 7.77 62.1 61.3 5.2 11 Total short-term 54,818,305 472 6.66 29.4 68.1 6.0 12 Fixed rate (thousands of dollars) 34,555,177 1,475 25 6.08 15.6 64.9 6.1 13 1-99 299,304 18 141 9.53 76.8 53.6 .9 14 100-499 439,182 208 96 7.94 65.1 76.1 6.4 15 500-999 482,813 671 72 7.15 46.0 85.9 14.1 16 1,000-4,999 4,328,842 2,309 38 6.66 31.4 81.9 6.4 17 5,000-9,999 4,212,072 6,616 43 6.35 22.0 79.4 7.4 18 10,000 or more 24,792,964 22,932 15 5.83 9.6 59.0 5.8 19 Floating rate (thousands of dollars) 20,263,127 219 148 7.65 52.8 73.5 5.6 20 1-99 1,818,524 26 200 9.62 81.8 88.0 1.5 21 100-499 3,391,536 201 206 9.05 73.6 92.1 3.8 22 500-999 1,564,958 668 193 8.74 67.8 91.3 6.4 23 1,000-4,999 4,116,007 1,914 152 7.79 54.7 79.1 5.9 24 5,000-9,999 2,192,641 6,710 126 7.10 43.5 76.1 9.1 25 10,000 or more 7,179,463 23,588 104 6.34 34.2 53.3 6.2 26 Total long-term 9,783,244 398 7.96 70.4 85.0 8.6 27 Fixed rate (thousands of dollars).. 2,048,563 203 7.41 59.3 74.0 10.4 28 1-99 222,351 26 9.53 94.9 31.9 .2 29 100-499 199,550 198 8.76 87.0 56.0 3.0 30 500-999 117,305 664 8.04 68.1 63.8 12.3 31 1,000 or more 1,509,357 4,031 6.87 49.7 83.4 12.7 32 Floating rate (thousands of dollars) 7,734,681 532 8.10 73.3 87.9 8.1 33 1-99 255,771 31 9.60 83.8 69.4 3.6 34 100-499 938,126 211 9.10 78.6 80.3 8.9 35 500-999 579,142 686 8.60 75.2 88.0 13.1 36 1,000 or more 5,961,642 5,652 7.83 71.8 89.9 7.7 Loan rate (percent) Days Effective Nominal LOANS MADE BELOW PRIME'" 37 Overnight6 16,625,674 11,811 5.81 5.64 9.7 60.3 4.2 38 One month or less (excluding overnight) 8,180,286 3,889 13 6.18 6.00 18.2 82.4 5.4 39 More than one month and less than one year 9,881,616 1,060 129 6.50 6.32 28.1 83.7 9.1 40 Demand7 10,142,647 2,572 5.99 5.86 28.0 36.6 7.6 41 Total short-term 44,830,223 2,672 42 Fixed rate 33,425,439 4,260 23 5.97 5.81 13.2 64.2 6.2 43 Floating rate 11,404,784 1,277 117 6.38 6.20 37.8 63.9 6.3 44 Total long-term 5,108,604 1,047 48 6.87 8.2 45 Fixed rate 1,534,086 620 6.75 6.61 50.2 78.2 8.7 46 Floating rate ... 3,574,518 1,486 6.92 6.72 72.3 89.0 8.0 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A105 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 1996'—Continued Commercial and industrial loans—Continued Weighted Loan rate (percent) Loans Loans made Amount of Average size average secured under Partici- Type o an f d l o m an a turity (tho d u o lo s l a a la n n r s d s s ) of (tho d u o s ll a a n r d s s ) of ma D tu a r y i s t y2 W e a ff v e e i e g c r t h a i g t v e e e d 3 Standard c ( o p l e l r b a c y t e e n ra t) l ( c p o m e 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 13,445,383 11,150 2 One month or less (excluding overnight) 6,181,420 2,236 6.30 17.2 90.1 6.0 3 Fixed rate 4,368,930 5,116 6.23 9.6 87.5 6.2 4 Floating rate 1,812,489 948 6.48 35.6 96.3 5.4 5 More than one month and less than one year 9,395,424 654 123 7.07 36.0 92.7 9.9 6 Fixed rate 4,648,252 2,679 80 6.73 31.0 96.5 11.0 7 Floating rate 4,747,172 376 165 7.41 40.9 88.9 8.9 8 Demand7 12,974,875 6.79 39.3 45.4 6.0 9 Fixed rate 5,259,309 5.69 8.3 32.0 9.4 10 Floating rate 7,715,566 60.5 54.5 3.7 7.53 11 Total short-term 41,997,101 995 25.9 68.8 6.48 12 Fixed rate (thousands of dollars) 27,483,619 5,505 20 13.2 67.3 6.7 13 1-99 36,495 34 158 68..0544 89.0 88.4 4.5 14 100-499 180,741 237 83 7.49 62.5 89.2 6.1 15 500-999 297,369 672 54 7.26 39.6 92.1 12.3 16 1,000-4,999 3,082,480 2,348 34 6.76 30.5 83.5 6.1 17 5,000-9,999 3,480,903 6,720 32 6.33 20.3 77.3 8.6 18 10,000 or more 20,405,631 23,021 15 5.84 8.4 62.5 6.4 19 Floating rate (thousands of dollars) 14,513,482 390 119 7.33 50.0 71.7 5.6 20 1-99 760,185 31 202 9.46 76.0 88.4 .9 21 100-499 1,930,171 207 203 9.00 74.0 90.8 3.8 22 500-999 957,753 668 192 8.69 70.6 89.5 6.6 23 1,000-4,999 2,872,093 2,036 139 7.61 52.8 79.4 6.7 24 5,000-9,999 1,824,258 6,678 123 7.01 40.3 71.9 7.8 25 10,000 or more 6,169,023 22,414 67 6.29 37.6 57.4 5.3 26 Total long-term 7,296,907 1,017 7.86 65.7 90.1 7.3 27 Fixed rate (thousands of dollars).. 1,316,806 1,031 6.90 50.0 83.5 12.6 28 1-99 20,438 31 9.36 84.2 64.2 2.3 29 100-499 64,651 221 8.33 79.0 77.2 5.6 30 500-999 64,417 716 7.60 68.7 87.6 22.4 31 1,000 or more 1,167,300 5,059 6.74 46.7 84.0 12.6 32 Floating rate (thousands of dollars) 5,980,100 1,014 8.07 69.2 91.6 6.1 33 1-99 93,555 42 9.35 73.5 85.6 4.0 34 100-499 505,853 226 8.93 71.2 91.0 8.1 35 500-999 403,537 670 8.62 71.5 88.2 10.5 36 1,000 or more 4,977,155 6,107 7.91 68.7 92.0 5.6 Loan rate (percent) Days Effective Nominal LOANS MADE BELOW PRIME10 37 Overnight6 13,241,893 12,452 5.81 5.65 8.5 64.4 4.3 38 One month or less (excluding overnight) 5,911,270 5,683 13 6.17 5.99 15.0 90.5 6.2 39 More than one month and less than one year 7,368,928 2,883 102* 6.50 6.32 26.5 91.8 10.6 40 Demand7 9,561,214 3,557 5.94 5.81 27.4 32.9 6.8 41 Total short-term 36,083,306 4,911 32 5.88 42 Fixed rate 26,758,563 7,211 19 5.96 5.80 11.0 66.4 6.8 43 Floating rate 9,324,743 2,564 6.30 6.12 39.0 64.5 5.8 44 Total long-term 3,881,763 2,693 62.2 45 Fixed rate 1,124,221 2,334 6.54 6.44 45.9 83.1 11.6 46 Floating rate ... 2,757,542 2,873 6.94 6.72 91.3 4.1 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A106 Special Tables • November 1996 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 1996'—Continued Commercial and industrial loans—Continued Type o an f d l o m an a turity (t A ho m u l o o s u a a n n n s t d s o f o f ( A th v o e u ra sa g n e d s s iz o e f 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 m e i r t a - de pat P io a n rt ic lo i- ans dollars) dollars) average collateral ment (percent) Days effective3 (percent) (percent) OTHER BANKS 1 Overnight6 3,391,848 14.3 2 One month or less (excluding overnight) 2,591,378 481 6.66 33.2 64.4 3.6 3 Fixed rate 2,086,239 1,156 6.25 25.1 57.7 3.0 4 Floating rate 505,139 141 8.36 66.7 92.3 6.0 5 More than one month and less than one year 4,844,884 104 207 7.94 52.0 71.8 3.5 6 Fixed rate 1,442,939 103 163 7.05 46.9 76.9 5.1 7 Floating rate 3,401,945 104 226 8.31 54.1 69.6 2.9 8 Demand7 1,993,093 94 67.9 89.1 11.3 9 Fixed rate 150,532 72 53.6 83.8 11.4 10 Floating rate 1,842,561 96 69.1 89.6 11.3 11 Total short-term 12,821,204 7.23 40.7 65.7 12 Fixed rate (thousands of dollars) 7,071,558 383 39 6.23 25.0 55.7 4.0 13 1-99 262,809 16 139 9.67 75.2 48.8 .5 14 100-499 258,440 192 104 8.25 .24 67.0 66.9 6.6 15 500-999 185,445 668 99 6.99 .10 56.3 75.9 17.0 16 1,000-4,999 1,246,362 2,217 47 6.41 .17 33.7 78.0 7.1 17 5,000-9,999 731,169 6,162 91 6.44 .25 30.1 89.8 1.9 18 10,000 or more 4,387,333 22,528 17 5.78 .16 14.9 42.6 3.0 19 Floating rate (thousands of dollars) 5,749,645 104 199 8.46 .19 60.0 78.0 5.9 20 1-99 1,058,339 23 200 9.73 .07 85.9 87.7 2.0 21 100-499 1,461,365 193 209 9.11 .06 73.2 93.8 3.8 22 500-999 607,204 667 194 8.83 .17 63.4 94.0 6.1 23 1,000-4,999 1,243,914 1,681 174 8.20 .20 59.0 78.2 4.2 24 5,000-9,999 368,383 6,874 136 7.53 .61 59.1 96.9 15.7 25 10,000 or more 1,010,440 34,681 237 6.60 1.15 13.3 28.3 11.3 26 Total long-term 2,486,337 8.25 84.0 69.9 27 Fixed rate (thousands of dollars). . 731,757 83 8.32 76.1 56.9 6.5 28 1-99 201,913 26 9.55 96.0 28.6 .0 29 100-499 134,899 189 8.97 90.8 45.8 1.7 30 500-999 52,888 610 8.59 67.4 34.8 .0 31 1,000 or more 342,057 2,380 7.29 59.8 81.3 13.2 32 Floating rate (thousands of dollars) 1,754,581 203 8.22 87.3 75.3 15.0 33 1-99 162,216 27 9.74 89.8 60.0 3.3 34 100-499 432,273 196 9.29 87.4 67.8 9.8 35 500-999 175,605 728 8.54 83.5 87.5 19.0 36 1,000 or more 984,487 4,107 7.44 87.4 79.0 18.5 Loan rate (percent) Days Effective3 Nominal1 LOANS MADE BELOW PRIME10 37 Overnight6 3,383,781 9,830 5.79 5.63 14.2 44.1 3.8 38 One month or less (excluding overnight) 2,269,015 2,134 13 6.23 6.04 26.5 61.5 3.4 39 More than one month and less than one year 2,512,688 371 208 6.51 6.33 33.1 60.1 4.7 40 Demand7 581,433 463 6.83 6.64 38.0 97.0 21.8 41 Total short-term 8,746,917 42 Fixed rate 6,666,876 1,612 35 6.01 5.84 21.9 55.4 4.1 43 Floating rate 2,080,041 393 203 6.73 6.53 32.5 61.0 8.7 44 Total long-term 1,226,841 45 Fixed rate 409,865 206 7.32 7.08 62.0 64.8 .6 46 Floating rate ... 816,977 565 6.84 6.71 84.3 81.3 21.2 Footnotes appear at the end of the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A107 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 1996'—Continued NOTES 1. The survey of terms of bank lending to business collects data on gross loan extensions 4. The chances are about two out of three that the average rate shown would differ by less made during the first full business week in the mid-month of each quarter by a sample of 340 than the amount of the standard error from the average rate that would be found by a complete commercial banks of all sizes. A sample of 250 banks reports loans to fanners. The sample survey of lending at all banks. data are blown up to estimate the lending terms at all insured commercial banks during that 5. The rate used to price the largest dollar volume of loans. Base pricing rates include the week. The estimated terms of bank lending are not intended for use in collecting the terms of prime rate (sometimes referred to as a bank's "basic" or "reference" rate); the federal funds loans extended over the entire quarter or residing in the portfolios of those banks. Construc- rate; domestic money market rates other than the federal funds rate; foreign money market tion and land development loans include both unsecured loans and loans secured by real rates; and other base rates not included in the foregoing classifications. estate. Thus, some of the construction and land development loans would be reported on the 6. Overnight loans mature on the following business day. statement of condition as real estate loans and the remainder as business loans. Mortgage 7. Demand loans have no stated date of maturity. loans, purchased loans, foreign loans, and loans of less that $1,000 are excluded from the 8. Nominal (not compounded) annual interest rate calculated from the stated rate and other survey. As of December 31, 1995, assets of most of the large banks were at least $7.0 billion. terms of the loans and weighted by loan size. Median total assets for all insured banks were roughly $ 1.0 billion. 9. Calculated by weighting the prime rate reported by each bank by the volume of loans 2. Average maturities are weighted by loan size; excludes demand loans. reported by that bank, summing the results, and then averaging over all reporting 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 the terms of the loans and weighted by loan size. proportion of such loans outstanding in banks' portfolios. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A108 Special Tables • November 1996 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19961 Millions of dollars except as noted All states2 New York California Illinois Item 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 F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s 1 Total assets4 767,192 289,671 593,356 239,817 68,999 27,809 61,949 13,322 2 Claims on nonrelated parties 682,548 141,090 523,095 118,008 64,804 10,653 57,456 6,777 3 Cash and balances due from depository institutions 109,868 80,928 99,269 72,259 2,922 2,296 5,677 4,980 4 Cash items in process of collection and unposted debits 2,723 0 2,619 0 3 0 43 0 5 Currency and coin (U.S. and foreign) 20 n.a. 13 n.a. 2 n.a. 1 n.a. 6 Balances with depository institutions in United States 66,452 44,707 60,585 40,363 2,061 1,482 3,214 2,612 7 U.S. branches and agencies of other foreign banks (including IBFs) 61,648 43,243 56,424 38,902 1,760 1,482 3,069 2,612 8 Other depository institutions in United States (including IBFs).... 4,805 1,464 4,161 1,461 301 0 145 0 9 Balances with banks in foreign countries and with foreign central banks 40,228 36,221 35,708 31,896 823 814 2,388 2,368 10 Foreign branches of U.S. banks 1,100 729 985 646 1 1 81 81 11 Other banks in foreign countries and foreign central banks 39,128 35,493 34,723 31,250 822 813 2,307 2,286 12 Balances with Federal Reserve Banks 444 n.a. 344 n.a. 32 n.a. 32 n.a. 13 Total securities and loans 433,235 49,433 302,143 36,673 56,321 7,367 41,283 1,541 14 Total securities, book value 99,900 9,442 92,087 8,306 3,845 670 3,379 446 15 U.S. Treasury 31,247 n.a. 30,011 n.a. 608 n.a. 503 n.a. 16 Obligations of U.S. government agencies and corporations 26,995 n.a. 26,389 n.a. 430 n.a. 47 n.a. 17 Other bonds, notes, debentures, and corporate stock (including state and local securities) 41,657 9,442 35,688 8,306 2,807 670 2,829 446 18 Securities of foreign governmental units 12,934 4,184 11,628 3,690 668 258 550 217 19 All Other 28,723 5,258 24,059 4,616 2,138 412 2,279 229 20 Federal funds sold and securities purchased under agreements to resell 48,107 7,884 43,871 6,827 1,066 698 2,201 17 21 U.S. branches and agencies of other foreign banks 13,735 5,523 12,634 5,257 310 63 233 17 22 Commercial banks in United States 7,856 148 7,077 148 56 0 475 0 23 Other 26,516 2,213 24,160 1,423 701 635 1,493 0 24 Total loans, gross 333,489 40,003 210,147 28,374 52,524 6,699 37,909 1,095 25 LESS: Unearned income on loans 153 11 91 7 48 2 6 0 26 EQUALS: Loans, net 333,336 39,992 210,056 28,367 52,476 6,697 37,903 1,095 Total loans, gross, by category 27 Real estate loans 31,576 208 19,098 58 9,064 149 1,580 00 28 Loans to depository institutions 37,572 24,682 24,984 16,184 6,793 5,009 870 546 29 Commercial banks in United States (including IBFs) 13,838 7,702 8,797 4,674 4,368 2,811 327 181 30 U.S. branches and agencies of other foreign banks 12,361 7,451 7,662 4,444 4,225 2,806 212 171 31 Other commercial banks in United States 1,478 250 1,135 230 143 5 115 10 32 Other depository institutions in United States (including IBFs) 34 0 34 0 0 0 0 0 33 Banks in foreign countries 23,700 16,981 16,153 11,510 2,425 2,198 544 365 34 Foreign branches of U.S. banks 477 316 389 308 0 0 0 0 35 Other banks in foreign countries 23,222 16,664 15., -t 11,202 2,425 2,198 544 365 36 Loans to other financial institutions 40,106 867 32,942 517 2,341 91 3,975 166 37 Commercial and industrial loans 203,867 12,178 116,496 9,645 33,337 1,403 29,296 373 38 U.S. addressees (domicile) 175,583 88 95,971 50 30,519 35 27,913 0 39 Non-U.S. addressees (domicile) 28,284 12,090 20,525 9,595 2,818 1,369 1,383 373 40 Acceptances of other banks 517 60 213 59 131 0 121 0 41 U.S. banks 51 0 27 0 8 0 6 0 42 Foreign banks 466 60 186 59 124 0 115 0 43 Loans to foreign governments and official institutions (including foreign central banks) 3,493 1,761 3,004 1,675 192 46 75 9 44 Loans for purchasing or carrying securities (secured and unsecured) .. . 8,338 87 8,181 87 77 0 32 0 45 All other loans 6,129 134 3,374 122 555 0 1,956 0 46 Lease financing receivables (net of unearned income) 1,890 26 1,854 26 33 0 4 0 47 U.S. addressees (domicile) 1,279 0 1,242 0 33 0 4 0 48 Non-U.S. addressees (domicile) 611 26 611 26 0 0 0 0 49 Trading assets 53,663 310 47,057 297 1,095 12 5,511 0 50 All other assets 37,675 2,535 30,755 1,952 3,399 280 2,784 239 51 Customers' liabilities on acceptances outstanding 8,082 n.a. 5,240 n.a. 2,101 n.a. 490 n.a. 52 U.S. addressees (domicile) 5,978 n.a. 3,596 n.a. 1,949 n.a. 312 n.a. 53 Non-U.S. addressees (domicile) 2,104 n.a. 1,645 n.a. 152 n.a. 178 n.a. 54 Other assets including other claims on nonrelated parties 29,593 2,535 25,515 1,952 1,298 280 2,294 239 55 Net due from related depository institutions5 84,643 148,580 70,262 121,809 4,196 17,156 4,493 6,545 56 Net due from head office and other related depository institutions .. . 84,643 n.a. 70,262 n.a. 4,196 n.a. 4,493 n.a. 57 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 148,580 n.a. 121,809 n.a. 17,156 n.a. 6,545 58 Total liabilities4 767,192 289,671 593,356 239,817 68,999 27,809 61,949 13,322 59 Liabilities to nonrelated parties 636,526 271,497 536,492 225,193 44,983 26,802 37,041 11,857 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A109 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1996'—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 IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s 60 Total deposits and credit balances 169,128 204,059 144,056 187,375 6,572 4,693 10,809 5,915 61 Individuals, partnerships, and corporations 117,884 13,955 96,877 9,230 5,424 614 8,631 134 62 U.S. addressees (domicile) 104,693 403 89,677 403 3,955 0 7,935 0 63 Non-U.S. addressees (domicile) 13,192 13,552 7,200 8 828 1,470 614 696 134 64 Commercial banks in United States (including IBFs) 27,135 44,715 24,712 42,166 654 1,418 1,425 823 65 U.S. branches and agencies of other foreign banks 16,284 41,155 15,203 39,009 260 1,219 556 671 66 Other commercial banks in United States 10,851 3,560 9,509 3,158 394 199 869 152 67 Banks in foreign countries 8,377 110,865 7,879 104,561 251 2,11 08 50 3,242 68 Foreign branches of U.S. banks 1,795 4,325 1,644 3,728 150 300 0 277 69 Other banks in foreign countries 6,581 106,540 6,234 100,832 101 1,708 50 2,965 70 Foreign governments and official institutions (including foreign central banks) 4,849 34,501 4,457 31,395 209 652 17 1,715 71 All other deposits and credit balances 10,563 23 9,862 23 5 0 676 1 72 Certified and official checks 320 269 27 8 73 Transaction accounts and credit balances (excluding IBFs) 8,285 6,704 332 324 74 Individuals, partnerships, and corporations 6,249 5,003 247 300 75 U.S. addressees (domicile) 4,407 3,852 168 295 76 Non-U.S. addressees (domicile) 1,842 1,151 79 5 77 Commercial banks in United States (including IBFs) 160 150 7 0 78 U.S. branches and agencies of other foreign banks 9 8 0 0 79 Other commercial banks in United States 150 141 7 0 80 Banks in foreign countries 879 673 36 12 81 Foreign branches of U.S. banks 5 4 0 0 82 Other banks in foreign countries 874 669 36 12 83 Foreign governments and official institutions (including foreign central banks) 553 500 10 2 84 All other deposits and credit balances 125 110 5 1 85 Certified and official checks 320 269 27 8 86 Demand deposits (included in transaction accounts and credit balances) 7,766 6,440 279 310 87 Individuals, partnerships, and corporations 5,896 4,880 202 287 88 U.S. addressees (domicile) 4,284 3,790 139 282 89 Non-U.S. addressees (domicile) 1,612 1,090 63 5 90 Commercial banks in United States (including IBFs) 99 95 0 0 91 U.S. branches and agencies of other foreign banks 9 n a. 8 n.a. 0 n.a. 0 n.a. 92 Other commercial banks in United States 90 87 0 0 93 Banks in foreign countries 825 621 35 12 94 Foreign branches of U.S. banks 5 4 0 0 95 Other banks in foreign countries 821 617 35 12 96 Foreign governments and official institutions (including foreign central banks) 535 496 10 2 97 All other deposits and credit balances 91 79 4 1 98 Certified and official checks 320 269 27 8 99 Nontransaction accounts (including MMDAs, excluding IBFs) 160,843 137,352 6,239 10,485 100 Individuals, partnerships, and corporations 111,635 91,874 5,177 8,331 101 U.S. addressees (domicile) 100,286 85,825 3,786 7,641 102 Non-U.S. addressees (domicile) 11,349 6,049 1,391 691 103 Commercial banks in United States (including IBFs) 26,975 24,562 648 1,425 104 U.S. branches and agencies of other foreign banks 16,275 15,195 260 556 105 Other commercial banks in United States 10,701 9,368 388 869 106 Banks in foreign countries 7,497 7,206 215 38 107 Foreign branches of U.S. banks 1,790 1,640 150 0 108 Other banks in foreign countries 5,707 5,566 65 38 109 Foreign governments and official institutions (including foreign central banks) 4,296 3,958 200 15 110 All other deposits and credit balances 10,438 9,752 0 676 111 IBF deposit liabilities 204,059 187,375 4,693 5,915 112 Individuals, partnerships, and corporations 13,955 9,230 614 134 113 U.S. addressees (domicile) 403 403 0 0 114 Non-U.S. addressees (domicile) 13,552 8,828 614 134 115 Commercial banks in United States (including IBFs) 44,715 42,166 1,418 823 116 U.S. branches and agencies of other foreign banks 41,155 39,009 1,219 671 117 Other commercial banks in United States n.a. 3,560 n.a. 3,158 n.a. 199 n a. 152 118 Banks in foreign countries 110,865 104,561 2,008 3,242 119 Foreign branches of U.S. banks 4,325 3,728 300 277 120 Other banks in foreign countries 106,540 100,832 1,708 2,965 121 Foreign governments and official institutions (including foreign central banks) 34,501 31,395 652 1.715 122 All other deposits and credit balances 23 23 0 1 Footnotes appear at end of table, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A110 Special Tables • November 1996 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1996'—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 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 m Federal funds purchased and securities sold under agreements to repurchase 88,109 17,879 75,540 12,551 6,456 3,777 5,437 1,234 124 U.S. branches and agencies of other foreign banks 13,780 4,615 8,767 1,846 3,531 2,455 1,278 257 125 Other commercial banks in United States 7,955 295 5,693 145 1,476 88 704 25 176 Other 66,373 12,969 61,080 10,560 1,448 1,234 3,454 952 127 Other borrowed money 98,762 46,183 61,942 22,302 23,280 18,077 10,568 4,604 m Owed to nonrelated commercial banks in United States (including IBFs) 26,237 12,165 12,857 4,626 9,268 6,051 2,599 1,026 129 Owed to U.S. offices of nonrelated U.S. banks 7,691 915 4,185 218 1,868 579 987 / 5 no Owed to U.S. branches and agencies of nonrelated foreign banks 18,547 11,250 8,673 4,408 7,401 5,473 1,612 951 131 Owed to nonrelated banks in foreign countries 35,053 30,928 19,014 15,076 11,756 11,642 3,475 3,474 132 Owed to foreign branches of nonrelated U.S. banks 1,563 1,400 451 316 971 951 133 133 133 Owed to foreign offices of nonrelated foreign banks 33,490 29,528 18,562 14,760 10,784 10,691 3,342 3,340 134 Owed to others 37,471 3,089 30,071 2,600 2,256 384 4,493 105 135 All other liabilities 76,468 3,376 67,579 2,965 3,984 255 4,312 104 136 Branch or agency liability on acceptances executed and outstanding 8,313 n.a. 55,,442244 n.a. 22,,111166 n.a. 449933 n. a. 137 Trading liabilities 41,099 397 37,740 382 1,054 14 2,285 1 138 Other liabilities to nonrelated parties 27,056 2,979 24,415 2,584 813 240 1,534 103 139 Net due to related depository institutions5 130,665 18,174 56,864 14,624 24,016 1,008 24,908 1,464 140 Net owed to head office and other related depository institutions .. . 130,665 n a. 56,864 n.a. 24,016 n.a. 24,908 n a. 141 Net owed to establishing entity, head office, and other related depository institutions5 n.a. 18,174 n.a. 14,624 n.a. 1,008 n.a. 1,464 MEMO 142 Non-interest-bearing balances with commercial banks in United States 1,457 0 1,197 0 83 0 71 0 143 Holding of commercial paper included in total loans 1,027 812 5 185 144 Holding of own acceptances included in commercial and industrial loans 5,179 3,862 1,112 95 145 Commercial and industrial loans with remaining maturity of one year or less 111177,,441100 6666,,224477 1199,,113300 1188,,442299 146 Predetermined interest rates 69,173 n a. 40,580 n a. 10,372 n.a. 12,438 n.a. 147 Floating interest rates 48,236 25,667 8,758 5,991 148 Commercial and industrial loans with remaining maturity of more than one year 85,733 49,715 14,070 10,829 149 Predetermined interest rates 20,186 12,498 2,980 3,086 150 Floating interest rates 65,547 37,217 11,090 7,743 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A111 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1996'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm Total Total Total Total ex I c B lu F d s i 3 n g o IB nl F y s 3 exc IB lu F d s i ng I o B n F ly s exc IB lu F d s i ng I o B n F ly s exc IB lu F d s i ng I o B n F ly s 111155551111 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 164,934 I 142,496 1 6,373 1 10,318 1 111155552222 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 125,664 108,051 4,467 8,263 111155553333 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 111155554444 TTTTiiiimmmmeeee CCCC oooorrrr DDDD mmmm ssss oooo iiiinnnn rrrreeee ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 31,269 n1.a. 27,168 n1.a. 1,392 n1.a. 1,912 n1.a. wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 8,001 7,277 514 144 All states2 New York California Illinois 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 F t d a s i l n g I o B n F ly s 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 F t d a s i l n g I o B n F ly s 111155555555 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 58,410 n.a. 32,933 n.a. 17,991 n.a. 5,776 n.a. 111155556666 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 501 0 246 0 111 0 43 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of either because the item is not an eligible IBF asset or liability or because that level of detail is Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first not reported for IBFs. From December 1981 through September 1985, IBF data were used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From included in all applicable items reported. November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 4. Total assets and total liabilities include net balances, if any, due from or owed to related monthly FR 886a report. Aggregate data from that report were available through the Federal banking institutions in the United States and in foreign countries (see note 5). On the former Reserve monthly statistical release G. 11, last issued on July 10. 1980. Data in this table and in monthly branch and agency report, available through the G.ll monthly statistical release, the G. 11 tables are not strictly comparable because of differences in reporting panels and in gross balances were included in total assets and total liabilities. Therefore, total asset and total definitions of balance sheet items. liability figures in this table are not comparable to those in the G.l 1 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item, file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A112 Index to Statistical Tables References are to pages A3-A111 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Deposits (See also specific types) Agricultural loans, commercial banks, 19, 20 Banks, by classes, 4, 17—21 Assets and liabilities (See also Foreigners) Federal Reserve Banks, 5, 10 Banks, by classes, 17—21 Interest rates, 15 Domestic finance companies, 33 Turnover, 16 Federal Reserve Banks, 10 Discount rates at Reserve Banks and at foreign central banks and Financial institutions, 25 foreign countries (See Interest rates) Foreign banks, U.S. branches and agencies, 21, 108-111 Discounts and advances by Reserve Banks (See Loans) Automobiles Dividends, corporate, 32 Consumer installment credit, 36 Production, 44, 45 EMPLOYMENT, 42 Eurodollars, 23 BANKERS acceptances, 10, 11, 19-22, 23 Bankers balances, 17-21, 108-111. (See also Foreigners) FARM mortgage loans, 35 Bonds (See also U.S. government securities) Federal agency obligations, 5, 9, 10, 11, 28, 29 New issues, 31 Federal credit agencies, 30 Rates, 23 Federal finance Branch banks, 21 Debt subject to statutory limitation, and types and ownership Business activity, nonfinancial, 42 of gross debt, 27 Business loans (See Commercial and industrial loans) Receipts and outlays, 25, 26 Treasury financing of surplus, or deficit, 25 Treasury operating balance, 25 CAPACITY utilization, 43 Federal Financing Bank, 30 Capital accounts Federal funds, 6, 19, 20, 21, 23, 25 Banks, by classes, 17, 64-103 Federal Home Loan Banks, 30 Federal Reserve Banks, 10 Federal Home Loan Mortgage Corporation, 30, 34, 35 Central banks, discount rates, 61 Federal Housing Administration, 30, 34, 35 Certificates of deposit, 23 Federal Land Banks, 35 Commercial and industrial loans Federal National Mortgage Association, 30, 34, 35 Commercial banks, 19, 20, 64-103 Federal Reserve Banks Weekly reporting banks, 19-21 Condition statement, 10 Commercial banks Discount rates (See Interest rates) Assets and liabilities, 17-21, 104-107 U.S. government securities held, 5, 10, 11, 27 Commercial and industrial loans, 17-21 Federal Reserve credit, 5, 6, 10, 11 Consumer loans held, by type and terms, 36, 64-103 Federal Reserve notes, 10 Deposit interest rates of insured, 15 Federally sponsored credit agencies, 30 Loans sold outright, 20 Finance companies Number by classes, 64-103 Assets and liabilities, 33 Real estate mortgages held, by holder and property, 35 Business credit, 33 Terms of lending, 104-107 Loans, 36 Time and savings deposits, 4 Paper, 22, 23 Commercial paper, 22, 23, 33 Financial institutions, loans to, 19, 20, 21 Condition statements (See Assets and liabilities) Float, 5 Construction, 42, 46 Flow of funds, 3>1-A\ Consumer installment credit, 36 Foreign banks, assets and liabilities of U.S. branches and Consumer prices, 42 agencies, 20, 21, 108-111 Consumption expenditures, 49, 50 Foreign currency operations, 10 Corporations Foreign deposits in U.S. banks, 5, 20 Profits and their distribution, 32 Foreign exchange rates, 62 Security issues, 31, 61 Foreign trade, 51 Cost of living (See Consumer prices) Foreigners Credit unions, 36 Claims on, 52, 55, 56, 57, 59 Currency in circulation, 5, 13 Liabilities to, 20, 51, 52, 53, 58, 60, 61 Customer credit, stock market, 24 GOLD Certificate account, 10 DEBITS to deposit accounts, 16 Stock, 5, 51 Debt (See specific types of debt or securities) Government National Mortgage Association, 30, 34, 35 Demand deposits Gross domestic product, 48 Banks, by classes, 17-21 Ownership by individuals, partnerships, and corporations, 20, 21 HOUSING, new and existing units, 46 Turnover, 16 Depository institutions INCOME, personal and national, 42, 48, 49 Reserve requirements, 8 Industrial production, 42, 44 Reserves and related items, 4, 5, 6, 12, 64-103 Installment loans, 36 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A113 Insurance companies, 27, 35 Repurchase agreements, 6 Interest rates Reserve requirements, 8 Bonds, 23 Reserves Commercial banks, 104-107 Commercial banks, 17 Consumer installment credit, 36 Depository institutions, 4, 5, 6, 12 Deposits, 15 Federal Reserve Banks, 10 Federal Reserve Banks, 7 U.S. reserve assets, 51 Foreign central banks and foreign countries, 61 Residential mortgage loans, 34 Money and capital markets, 23 Retail credit and retail sales, 36, 42 Mortgages, 34 Prime rate, 22 SAVING International capital transactions of United States, 50-61 Flow of funds, 37^11 International organizations, 52, 53, 55, 58, 59 National income accounts, 48 Inventories, 48 Savings institutions, 35, 36, 37 Investment companies, issues and assets, 32 Savings deposits (See Time and savings deposits) Investments (See also specific types) Securities (See also specific types) Banks, by classes, 17-21 Federal and federally sponsored credit agencies, 30 Commercial banks, 4, 17-21 Foreign transactions, 60 Federal Reserve Banks, 10, 11 New issues, 31 Financial institutions, 35 Prices, 24 Special drawing rights, 5, 10, 50, 51 LABOR force, 42 State and local governments Life insurance companies (See Insurance companies) Deposits, 19, 20 Loans (See also specific types) Holdings of U.S. government securities, 27 Banks, by classes, 17—21 New security issues, 31 Commercial banks, 17-21, 64-103 Ownership of securities issued by, 19, 21 Federal Reserve Banks, 5, 6, 7, 10, 11 Rates on securities, 23 Financial institutions, 35 Stock market, selected statistics, 24 Insured or guaranteed by United States, 34, 35 Stocks (See also Securities) New issues, 31 MANUFACTURING Prices, 24 Capacity utilization, 43 Production, 43, 45 Student Loan Marketing Association, 30 Margin requirements, 24 Member banks (See also Depository institutions) TAX receipts, federal, 26 Federal funds and repurchase agreements, 6 Thrift institutions, 4. (See also Credit unions and Savings Reserve requirements, 8 institutions) Mining production, 45 Time and savings deposits, 4, 13, 15, 17-21, 64-103 Mobile homes shipped, 46 Trade, foreign, 51 Monetary and credit aggregates, 4, 12 Treasury cash, Treasury currency, 5 Money and capital market rates, 23 Treasury deposits, 5, 10, 25 Money stock measures and components, 4, 13 Treasury operating balance, 25 Mortgages (See Real estate loans) UNEMPLOYMENT, 42 Mutual funds, 32 U.S. government balances Mutual savings banks (See Thrift institutions) Commercial bank holdings, 17-21 Treasury deposits at Reserve Banks, 5, 10, 25 NATIONAL defense outlays, 26 U.S. government securities National income, 48 Bank holdings, 17-21, 27 Dealer transactions, positions, and financing, 29 OPEN market transactions, 9 Federal Reserve Bank holdings, 5, 10, 11, 27 Foreign and international holdings and PERSONAL income, 49 transactions, 10, 27, 61 Prices Open market transactions, 9 Consumer and producer, 42, 47 Outstanding, by type and holder, 27, 28 Stock market, 24 Rates, 23 Prime rate, 22 U.S. international transactions, 50-62 Producer prices, 42, 47 Utilities, production, 45 Production, 42, 44 Profits, corporate, 32 VETERANS Administration, 34, 35 REAL estate loans WEEKLY reporting banks, 17-21 Banks, by classes, 19, 20, 35 Wholesale (producer) prices, 42, 47 Terms, yields, and activity, 34 Type of holder and property mortgaged, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A114 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD W. KELLEY, JR. ALICE M. RIVLIN, Vice Chair 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 DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel MICHAEL J. PRELL, Director SCOTT G. ALVAREZ, Associate General Counsel EDWARD C. ETTIN, Deputy Director RICHARD M. ASHTON, Associate General Counsel DAVID J. STOCKTON, Deputy Director OLIVER IRELAND, Associate General Counsel MARTHA BETHEA, Associate Director KATHLEEN M. O'DAY, Associate General Counsel WILLIAM R. JONES, Associate Director ROBERT DEV. FRIERSON, Assistant General Counsel MYRON L. KWAST, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel PATRICK M. PARKINSON, Associate Director THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director OFFICE OF THE SECRETARY MARTHA S. SCANLON, Deputy Associate Director WILLIAM W. WILES, Secretary PETER A. TINSLEY, Deputy Associate Director JENNIFER J. JOHNSON, Deputy Secretary DAVID S. JONES, Assistant Director BARBARA R. LOWREY, Associate Secretary and Ombudsman STEPHEN A. RHOADES, Assistant Director CHARLES S. STRUCKMEYER, Assistant Director DIVISION OF BANKING ALICE PATRICIA WHITE, Assistant Director JOYCE K. ZICKLER, Assistant Director SUPERVISION AND REGULATION JOHN J. MINGO, Senior Adviser RICHARD SPILLENKOTHEN, Director GLENN B. CANNER, Adviser STEPHEN C. SCHEMERING, Deputy Director WILLIAM A. RYBACK, 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 JAMES V. HOUPT, Assistant Director NORMAND R. V. BERNARD, Special Assistant to the Board JACK P. JENNINGS, Assistant Director MICHAEL G. MARTINSON, Assistant Director DIVISION OF CONSUMER RHOGER H PUGH, Assistant Director AND COMMUNITY AFFAIRS SIDNEY M. SUSSAN, Assistant Director GRIFFITH L. GARWOOD, Director MOLLY S. WASSOM, Assistant Director GLENN E. LONEY, Associate Director WILLIAM SCHNEIDER, Project Director, DOLORES S. SMITH, Associate Director National Information Center MAUREEN P. ENGLISH, Assistant Director IRENE SHAWN MCNULTY, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A115 SUSAN M. PHILLIPS LAURENCE H. MEYER 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) LOUISE L. ROSEMAN, Associate Director DIVISION OF HUMAN RESOURCES CHARLES W. BENNETT, Assistant Director MANAGEMENT JACK DENNIS, JR., Assistant Director DAVID L. SHANNON, Director EARL G. HAMILTON, Assistant Director JOHN R. WEIS, Associate Director JEFFREY C. MARQUARDT, Assistant Director JOHN H. PARRISH, Assistant Director JOSEPH H. HAYES, JR., Assistant Director FRED HOROWITZ, Assistant Director FLORENCE M. YOUNG, Assistant Director OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE CONTROLLER BRENT L. BOWEN, Inspector General GEORGE E. LIVINGSTON, Controller DONALD L. ROBINSON, Assistant Inspector General STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) BARRY R. SNYDER, Assistant Inspector General DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director MARIANNE M. EMERSON, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director EDWARD T. MULRENIN, Assistant Director DAY W. RADABAUGH, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director RICHARD C. STEVENS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A116 Federal Reserve Bulletin • November 1996 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman EDWARD G. BOEHNE LAWRENCE B. LINDSEY ALICE M. RIVLIN JERRY L. JORDAN ROBERT D. MCTEER, JR. GARY H. STERN EDWARD W. KELLEY, JR. LAURENCE H. MEYER JANET L. YELLEN SUSAN M. PHILLIPS ALTERNATE MEMBERS J. ALFRED BROADDUS, JR. MICHAEL H. MOSKOW ERNEST T. PATRIKIS JACK GUYNN ROBERT T. PARRY STAFF DONALD L. KOHN, Secretary and Economist DAVID E. LINDSEY, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary FREDERIC S. MISHKIN, Associate Economist JOSEPH R. COYNE, Assistant Secretary LARRY J. PROMISEL, Associate Economist GARY P. GILLUM, Assistant Secretary ARTHUR J. ROLNICK, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel HARVEY ROSENBLUM, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel CHARLES J. SIEGMAN, Associate Economist MICHAEL J. PRELL, Economist THOMAS D. SIMPSON, Associate Economist EDWIN M. TRUMAN, Economist MARK S. SNIDERMAN, Associate Economist RICHARD W. LANG, Associate Economist DAVID J. STOCKTON, Associate Economist PETER R. FISHER, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL RICHARD G. TILGHMAN, President FRANK V. CAHOUET, Vice President WILLIAM M. CROZIER, JR., First District ROGER L. FITZSIMONDS, Seventh District WALTER V. SHIPLEY, Second District THOMAS H. JACOBSEN, Eighth District WALTER E. DALLER, JR., Third District RICHARD M. KOVACEVICH, Ninth District FRANK V. CAHOUET, Fourth District CHARLES E. NELSON, Tenth District RICHARD G. TILGHMAN, Fifth District CHARLES T. DOYLE, Eleventh District CHARLES E. RICE, Sixth District WILLIAM F. ZUENDT, 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

A117 CONSUMER ADVISORY COUNCIL KATHARINE W. MCKEE, Durham, North Carolina, Chairman JULIA M. SEWARD, Richmond, Virginia, Vice Chairman RICHARD S. AMADOR, LOS Angeles, California ERROL T. LOUIS, Brooklyn, New York THOMAS R. BUTLER, Riverwoods, Illinois WILLIAM N. LUND, Falmouth, Maine ROBERT A. COOK, Baltimore, Maryland RONALD A. PRILL, Minneapolis, Minnesota ALVIN J. COWANS, Orlando, Florida LISA RICE-COLEMAN, Toledo, Ohio ELIZABETH G. FLORES, Laredo, Texas JOHN R. RINES, Detroit, Michigan HERIBERTO FLORES, Springfield, Massachusetts MARGOT SAUNDERS, Washington, D.C. EMANUEL FREEMAN, Philadelphia, Pennsylvania ANNE B. SHLAY, Philadelphia, Pennsylvania DAVID C. FYNN, Cleveland, Ohio REGINALD J. SMITH, Kansas City, Missouri ROBERT G. GREER, Houston, Texas GEORGE P. SURGEON, Arkadelphia, Arkansas KENNETH R. HARNEY, Chevy Chase, Maryland GREGORY D. SQUIRES, Milwaukee, Wisconsin GAIL K. HILLEBRAND, San Francisco, California JOHN E. TAYLOR, Washington, D.C. TERRY JORDE, Cando, North Dakota LORRAINE VANETTEN, Troy, Michigan FRANCINE JUSTA, New York, New York THEODORE J. WYSOCKI, JR., Chicago, Illinois EUGENE I. LEHRMANN, Madison, Wisconsin LILY K. YAO, Honolulu, Hawaii THRIFT INSTITUTIONS ADVISORY COUNCIL E. LEE BEARD, Hazleton, Pennsylvania, President DAVID F. HOLLAND, Burlington, Massachusetts, Vice President BARRY C. BURKHOLDER, Houston, Texas CHARLES R. RINEHART, Irwindale, California MICHAEL T. CROWLEY, JR., Milwaukee, Wisconsin JOSEPH C. SCULLY, Chicago, Illinois GEORGE L. ENGELKE, JR., Lake Success, New York RONALD W. STIMPSON, Memphis, Tennessee DOUGLAS A. FERRARO, Englewood, Colorado 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

A118 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Monetary Policy and Reserve Requirements Handbook. $75.00 MS-127, Board of Governors of the Federal Reserve System, per year. Washington, DC 20551 or telephone (202) 452-3244 or FAX Securities Credit Transactions Handbook. $75.00 per year. (202) 728-5886. You may also use the publications order The Payment System Handbook. $75.00 per year. form available on the Board's World Wide Web site Federal Reserve Regulatory Service. Four vols. (Contains all (http://www.bog.frb.fed.us). When a charge is indicated, payment four Handbooks plus substantial additional material.) $200.00 should accompany request and be made payable to the Board of per year. Governors of the Federal Reserve System or may be ordered via Rates for subscribers outside the United States are as follows Mastercard or Visa. Payment from foreign residents should be and include additional air mail costs: drawn on a U.S. bank. Federal Reserve Regulatory Service, $250.00 per year. Each Handbook, $90.00 per year. FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL COMPUTERS. Diskettes; updated monthly. Standalone PC. $300 per year. BOOKS AND MISCELLANEOUS PUBLICATIONS Network, maximum 1 concurrent user. $300 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. Network, maximum 10 concurrent users. $750 per year. 1994. 157 pp. Network, maximum 50 concurrent users. $2,000 per year. ANNUAL REPORT. Network, maximum 100 concurrent users. $3,000 per year. ANNUAL REPORT: BUDGET REVIEW, 1995-96. Subscribers outside the United States should add $50 to cover FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 additional airmail costs. each in the United States, its possessions, Canada, and THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- Mexico. Elsewhere, $35.00 per year or $3.00 each. COUNTRY MODEL, May 1984. 590 pp. $14.50 each. ANNUAL STATISTICAL DIGEST: period covered, release date, num- INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. ber of pages, and price. 440 pp. $9.00 each. 1981 October 1982 239 pp. $ 6.50 FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1982 December 1983 266 pp. $ 7.50 December 1986. 264 pp. $10.00 each. 1983 October 1984 264 pp. $11.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1984 October 1985 254 pp. $12.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1985 October 1986 231 pp. $15.00 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 1992 December 1993 215 pp. $25.00 1993 December 1994 281 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages 1994 December 1995 190 pp. $25.00 Consumer Handbook to Credit Protection Laws A Guide to Business Credit for Women, Minorities, and Small Businesses SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF Series on the Structure of the Federal Reserve System CHARTS. Weekly. $30.00 per year or $.70 each in the United The Board of Governors of the Federal Reserve System States, its possessions, Canada, and Mexico. Elsewhere, The Federal Open Market Committee $35.00 per year or $.80 each. Federal Reserve Bank Board of Directors Federal Reserve Banks THE FEDERAL RESERVE ACT and other statutory provisions affect- Organization and Advisory Committees ing the Federal Reserve System, as amended through August A Consumer's Guide to Mortgage Lock-Ins 1990. 646 pp. $10.00. A Consumer's Guide to Mortgage Settlement Costs REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Refinancings RESERVE SYSTEM. Home Mortgages: Understanding the Process and Your Right ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— to Fair Lending Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. How to File a Consumer Complaint Vol. II (Irregular Transactions). 1969. 116 pp. Each volume Making Deposits: When Will Your Money Be Available? $2.25. Making Sense of Savings GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 each. SHOP: The Card You Pick Can Save You Money FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated Welcome to the Federal Reserve monthly. (Requests must be prepaid.) When Your Home is on the Line: What You Should Know Consumer and Community Affairs Handbook. $75.00 per year. About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A119 STAFF STUDIES: Only Summaries Printed in the 163. CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR- KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, BULLETIN Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary Studies and papers on economic and financial subjects that are of Ann Taylor. March 1992. 37 pp. general interest. Requests to obtain single copies of the full text or to be added to the mailing list for the series may be sent to 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by James T. Fergus and John L. Goodman, Jr. July 1993. Publications Services. 20 pp. 165. THE DEMAND FOR TRADE CREDIT: AN INVESTIGATION OF Staff Studies 1-157 are out of print. MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- 1993. 18 pp. MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE 166. THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET, by PRODUCTS, by Mark J. Warshawsky with the assistance of Mark Carey, Stephen Prowse, John Rea, and Gregory Udell. Dietrich Earnhart. September 1989. 23 pp. January 1994. Ill pp. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Donald Savage. February 1990. 12 pp. PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- by Stephen A. Rhoades. July 1994. 37 pp. VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by 168. THE ECONOMICS OF THE PRIVATE EQUITY MARKET, by Gregory E. Elliehausen and John D. Wolken. September George W. Fenn, Nellie Liang, and Stephen Prowse. Novem- 1990. 35 pp. ber 1995. 69 pp. 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 169. BANK MERGERS AND INDUSTRYWIDE STRUCTURE, 1980-94, 1980-90, by Margaret Hastings Pickering. May 1991. by Stephen A. Rhoades. February 1996. 32 pp. 21pp. 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A120 Maps of the Federal Reserve System )N :2 •NEW YORK CLEVELAND PHILADELPHIA KANSAS CITY • D Louis 6 • ATLANTA ^ DALLAS 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 by number of Puerto Rico and the U.S. Virgin Islands; the San and Reserve Bank city (shown on both pages) and by letter Francisco Bank serves American Samoa, Guam, and the (shown on the facing page). Commonwealth of the Northern Mariana Islands. The In the 12th District, the Seattle Branch serves Alaska, Board of Governors revised the branch boundaries of the and the San Francisco Bank serves Hawaii. System most recently in December 1991. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A121 1-A 2-B 3-C 4-D 5-E Baltimore MD A 1 CT • Pittslxirgh wv — Buffalo •Chgdmte m m / ct •Cfeadnnati BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H •NsMlle / Birmingham Detroit* •Memphis New Orleans ATLANTA CHICAGO ST. LOUIS 9-1 MT KB MS • Helena IM INNEAPOLIS 10-J 12-L m Defter ALASKA Sestlle / Ok tahon^&Clty F Mtlatlu OK KANSAS CITY CA JWW 11-K XX IMS • NTF \ \ # • \ L^, m 7 • El Paso R V • rA—R* YHo usfon •Los Angeles San AnuSiX* HAWAII ' ** DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A122 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 John C. Whitehead William J. McDonough Thomas W. Jones Ernest T. Patrikis Buffalo 14240 Joseph J. Castiglia Carl W. Turnipseed1 PHILADELPHIA 19105 Donald J. Kennedy Edward G. Boehne Joan Carter 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 John T. Ryan III Harold J. Swart1 RICHMOND* 23219 Claudine B. Malone J. Alfred Broaddus, Jr. Robert L. Strickland Walter A. Varvel Baltimore 21203 Michael R. Watson William J. Tignanelli1 Charlotte 28230 James O. Roberson Dan M. Bechter1 Culpeper 22701 Julius Malinowski, Jr.2 ATLANTA 30303 Hugh M. Brown Jack Guynn Daniel E. Sweat, Jr. Patrick K. Barron James M. Mckee1 Birmingham 35283 Donald E. Boomershine FredR. Herr1 Jacksonville 32231 Joan D. Ruffier James D. Hawkins1 Miami 33152 R. Kirk Landon James T. Curry III Nashville 37203 Paula Lovell Melvyn K. Purcell New Orleans 70161 Lucimarian Roberts Robert J. Musso CHICAGO* 60690 Robert M. Healey Michael H. Moskow Lester H. McKeever, Jr. William C. Conrad Detroit 48231 Florine Mark David R. Allardice1 ST. LOUIS 63166 John F. McDonnell Thomas C. Melzer Susan S. Elliott W. LeGrande Rives Little Rock 72203 Janet M. Jones Robert A. Hopkins Louisville 40232 John A. Williams Thomas A. Boone Memphis 38101 John V. Myers John P. Baumgartner MINNEAPOLIS 55480 Jean D. Kinsey Gary H. Stern David A. Koch Colleen K! Strand Helena 59601 Lane W. Basso John D.Johnson KANSAS CITY 64198 A. Drue Jennings Thomas M. Hoenig Jo Marie Dancik Richard K. Rasdall Denver 80217 Peter I. Wold Carl M. Gambs1 Oklahoma City 73125 Barry L. Eller Kelly J. Dubbert Omaha 68102 LeRoy W. Thorn Harold L. Shewmaker DALLAS 75201 Cece Smith Robert D. McTeer, Jr. Roger R. Hemminghaus Helen E. Holcomb El Paso 79999 Patricia Z. Holland-Branch Sammie C. Clay Houston 77252 Issac 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 John F. Moore Los Angeles 90051 Anita E. Landecker Mark L. Mullinix1 Portland 97208 Ross R. Runkel Raymond H. Laurence1 Salt Lake City 84125 Gerald R. Sherratt Andrea P. Wolcott Seattle 98124 George F. Russell, Jr. Gordon R. G. Werkema3 •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. 3. Executive 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 Sys- For further information regarding a subscription to tem makes some of its statistical releases available to the economic bulletin board, please call (202) 482the public through the U.S. Department of Com- 1986. The releases transmitted to the economic bullemerce's economic bulletin board. Computer access tin board, on a regular basis, are the following: to the releases can be obtained by subscription. 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. 1 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 pam- Shop . . . The Card You Pick Can Save You Money is phlets covering individual credit laws and topics, as designed to help consumers comparison shop when pictured below. looking for a credit card. It contains the results of the Three booklets on the mortgage process are available: Federal Reserve Board's survey of the terms of credit A Consumer's Guide to Mortgage Lock-Ins, A Consum- card plans offered by credit card issuers throughout the er's Guide to Mortgage Refinancings, and A Consumer's United States. Because the terms can affect the amount Guide to Mortgage Settlement Costs. These booklets an individual pays for using a credit card, the booklet were prepared in conjunction with the Federal Home lists the annual percentage rate (APR), annual fee, grace Loan Bank Board and in consultation with other federal period, type of pricing (fixed or variable rate), and a agencies and trade and consumer groups. The Board telephone number for each card issuer surveyed. also publishes the Consumer Handbook to Credit Pro- Copies of consumer publications are available free tection Laws, a complete guide to consumer credit pro- of charge from Publications Services, Mail Stop 127, tections. This forty-four-page booklet explains how to Board of Governors of the Federal Reserve System, shop and obtain credit, how to maintain a good credit Washington, DC 20551. Multiple copies for classroom rating, and how to dispute unfair credit transactions. use are also available free of charge. A Guide to A ^nwiniHap'• WnlWUIPf m Qukteto Business Mortgage Credit for Women, Minorities, and Small Businesses SHOP m The Card You Pick Can Savs You Money Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory func- The Payment System Handbook deals with expedited tions, the Board publishes the Federal Reserve Regu- funds availability, check collection, wire transfers, and latory Service, a four-volume loose-leaf service con- risk-reduction policy. It includes Regulations CC, J, and taining all Board regulations as well as related statutes, EE, related statutes and commentaries, and policy interpretations, policy statements, rulings, and staff statements on risk reduction in the payment system. opinions. For those with a more specialized interest in For domestic subscribers, the annual rate is $200 for the Board's regulations, parts of this service are pub- the Federal Reserve Regulatory Service and $75 for lished separately as handbooks pertaining to monetary each Handbook. For subscribers outside the United policy, securities credit, consumer affairs, and the pay- States, the price including additional air mail costs is ment system. $250 for the Service and $90 for each Handbook. These publications are designed to help those who The Federal Reserve Regulatory Service is also availmust frequently refer to the Board's regulatory materi- able on diskette for use on personal computers. For a als. They are updated monthly, and each contains cita- standalone PC, the annual subscription fee is $300. For tion indexes and a subject index. network subscriptions, the annual fee is $300 for 1 con- The Monetary Policy and Reserve Requirements current user, $750 for a maximum of 10 concurrent Handbook contains Regulations A, D, and Q, plus users, $2,000 for a maximum of 50 concurrent users, related materials. and $3,000 for a maximum of 100 concurrent users. The Securities Credit Transactions Handbook con- Subscribers outside the United States should add $50 tains Regulations G, T, U, and X, dealing with exten- to cover additional airmail costs. For further informasions of credit for the purchase of securities, together tion, call (202) 452-3244. with related statutes, Board interpretations, rulings, All subscription requests must be accompanied by a and staff opinions. Also included are the Board's list check or money order payable to the Board of Goverof marginable OTC stocks and its list of foreign margin nors of the Federal Reserve System. Orders should be stocks. addressed to Publications Services, mail stop 127, Board The Consumer and Community Affairs Handbook of Governors of the Federal Reserve System, Washingcontains Regulations B, C, E, M, Z, AA, BB, and DD, ton, DC 20551. and associated materials. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A recent Federal Reserve publication, Guide to the Flow dures as seasonal adjustment, extrapolation, and of Funds Accounts, explains in detail how the U.S. interpolation. financial flow accounts are prepared. The accounts, The balance of the Guide contains explanatory tables which are compiled by the Division of Research and corresponding to the tables of financial flows data that Statistics, are published in the Board's quarterly Z.l appeared in the September 1992 Z.l release. These statistical release, "Flow of Funds Accounts, Flows and tables give, for each data series, the source of the data or Outstandings." The Guide updates and replaces Intro- the methods of calculation, along with annual data for duction to Flow of Funds, published in 1980. 1991 that were published in the September 1992 release. The 670-page Guide begins with an explanation of Guide to the Flow of Funds Accounts is available for the organization and uses of the flow of funds accounts $8.50 per copy from Publications Services, Board of and their relationship to the national income and Governors of the Federal Reserve System, Washington, product accounts prepared by the U.S. Department of DC 20551. Orders must include a check or money order, Commerce. Also discussed are the individual data in US. dollars, made payable to the Board of Governors series that make up the accounts and such proce- of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis