Federal Reserve Bulletin, 1997-01

VOLUME 83 • NUMBER 1 • JANUARY 1997 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 L FAMILY FINANCES IN THE U.S.: Final rule and proposed rule concerning lending RECENT EVIDENCE FROM THE SURVEY by member banks to their insiders under Regu- OF CONSUMER FINANCES lation O. Using data that have just become available from Decrease in the net transaction accounts to the 1995 Survey of Consumer Finances along which a 3 percent reserve requirement will with data from the 1989 and 1992 versions of the apply in 1997. survey, this article provides a detailed picture of Proposed revisions to the official staff commenrecent changes in the income, net worth, assets, tary to Regulation Z. and liabilities of U.S. families. It also presents information on family saving, unrealized capital Publication of the Annual Statistical Digest, gains, debt payments, and institutional providers 1990-1995. of credit. Of the developments the article reports, Revisions to tables in the statistical appendix to a few are particularly noteworthy. First, between the Federal Reserve Bulletin. the 1992 and 1995 surveys, both median family income and median family net worth rose in 32 MINUTES OF THE FEDERAL OPEN constant dollars. The former, however, remained MARKET COMMITTEE MEETING HELD ON below the level measured in 1989, whereas the SEPTEMBER 24, 1996 latter returned to the 1989 level. Second, the percentage of families who owned publicly traded At its meeting on September 24, 1996, the stock and the amount of their holdings expanded Committee adopted a directive that called for greatly over the six-year period. Finally, there maintaining the existing degree of pressure on was little evidence of a serious rise in debt pay- reserve positions and that included a bias ment problems between 1992 and 1995, even toward the possible firming of reserve condithough both the share of families with debt and tions during the intermeeting period. the median amount of their debt rose. 39 LEGAL DEVELOPMENTS 25 INDUSTRIAL PRODUCTION AND CAPACITY Various bank holding company, bank service UTILIZATION FOR NOVEMBER 1996 corporation, and bank merger orders; and pending cases. Industrial production increased 0.9 percent in November, to 128.0 percent of its 1987 average, A1 FINANCIAL AND BUSINESS STATISTICS after a revised decline of 0.2 percent in October. The utilization of industrial capacity increased These tables reflect data available as of 0.4 percentage point, to 83.3 percent. November 26, 1996. 29 ANNOUNCEMENTS A3 GUIDE TO TABULAR PRESENTATION Appointments of Chairmen and Deputy Chair- A4 Domestic Financial Statistics men of the Federal Reserve Banks. A42 Domestic Nonfinancial Statistics A50 International Statistics Release of a report on public disclosure of trading and derivatives activities of banks and securities A63 GUIDE TO STATISTICAL RELEASES AND firms by the Basle Committee on Banking Super- SPECIAL TABLES vision and the Technical Committee of the International Organisation of Securities Commissions. A66 INDEX TO STATISTICAL TABLES Issuance of an interpretation of margin regulations. A68 BOARD OF GOVERNORS AND STAFF Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 FEDERAL OPEN MARKET COMMITTEE AND A74 MAPS OF THE FEDERAL RESERVE SYSTEM STAFF; ADVISORY COUNCILS A76 FEDERAL RESERVE BANKS, BRANCHES, A72 FEDERAL RESERVE BOARD PUBLICATIONS AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances Arthur B. Kennickell, Martha Starr-McCluer, and ECONOMIC AND FINANCIAL BACKDROP Annika E. Sunden, of the Board's Division of Research and Statistics, prepared this article. Between 1992 and 1995, changes in family finances Gerhard Fries, Kevin Moore, Amy Stubbendick, and were influenced by various macroeconomic events Louise Woodburn provided important assistance. and long-term trends. Overall, the period was one of continuing economic expansion. In September 1992, Using data that have just become available from the as the U.S. economy was beginning to recover from 1995 Survey of Consumer Finances (SCF) along with the 1990-91 recession, the civilian unemployment data from the 1989 and 1992 versions of the survey, rate was 7.6 percent.2 By 1995, the fourth year of this article details recent changes in the income, net the expansion, the unemployment rate had fallen to worth, assets, and liabilities of U.S. families. It also 5.6 percent. Inflation was subdued over the period, presents information on family saving, unrealized with consumer prices rising at an average annual rate capital gains, debt payments, and institutional provid- of 2.7 percent. ers of credit. Its primary focus is on changes in Conditions for families were also changing in the family finances between the 1992 and 1995 surveys; financial sector. Interest rates on deposits, which were however, selected 1989 survey data provide a broader very low in 1992, rose on net over the period; for context within which to interpret the more recent example, the average rate on three-month certificates changes.1 of deposit increased from 3.1 percent in 1992 to Although the data from the 1995 survey are still 5.8 percent in 1995. In contrast, interest rates on preliminary, some findings appear particularly note- newly originated conventional mortgages declined worthy. First, between the 1992 and 1995 surveys, from 9.7 percent in 1992 to 7.4 percent in early 1994 both median family income and median family net and then edged up to 7.6 percent in 1995. At the same worth rose in constant dollars. The former, however, time, the Standard and Poor's index of 500 stock remained below the level measured in 1989, whereas prices increased at an annualized rate of 10.8 percent, the latter returned to the 1989 level. Second, the and home prices rose at a moderate pace. ownership and the amount of holdings of publicly Several institutional trends were important for traded stock by families expanded greatly over this family finances over the period covered by the surperiod. In 1995, more than 41 percent of families veys. Two such trends may have accelerated the had direct or indirect stockholdings, compared with growth of holdings of financial assets, particularly about 37 percent in 1992, and these assets accounted stocks. First, the variety of mutual funds available to for about 40 percent of their total financial assets, families continued to expand, as did the number of compared with a little more than 34 percent in no-load funds. Second, employers increasingly 1992. Finally, the survey provided little evidence offered tax-deferred saving plans as a way for workof a serious rise in debt payment problems between ers to accumulate savings for retirement. Often such 1992 and 1995, even though both the share of fami- employer-provided plans offer an option that allows lies with debt and the median amount of their debt participants to invest in corporate equities. On the rose. liability side of the balance sheet, growth in credit card holding was driven by increased marketing, 1. For a detailed discussion of the results from the 1989 and 1992 SCF, see Arthur B. Kennickell and Martha Starr-McCluer, "Changes 2. All other aggregate statistics cited in this section are for Septemin Family Finances from 1989 to 1992," Federal Reserve Bulletin, ber unless otherwise noted. This month was the midpoint of the vol. 80 (October 1994), pp. 861-82. periods during which interviews were conducted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1997 relaxation of credit standards, lower credit card inter- the year of the interview (see box "The Survey of est rates, and usage-based incentive plans (for exam- Consumer Finances"). Median and mean family ple, cash rebate programs). income for 1994 (derived from the 1995 survey) had A key demographic trend was the aging of the moved above the depressed levels of 1991 (from the large post-World War II cohort. From 1992 to 1995, 1992 survey) but had not yet moved back up to the the proportion of families headed by persons between pre-recession levels of 1988 (from the 1989 survey).3 45 and 54 years of age rose from 16.2 percent to In addition, the percentage of families with incomes 17.8 percent. The financial decisions of families with of more than $50,000 declined over this six-year heads in this group are likely to be influenced by the period. cost of college education for their children and the Some cross-sectional patterns hold generally across need to save for their own retirement. the three SCF surveys. Income is successively higher FAMILY INCOME 3. If the PCE deflator is used instead of the CPI to adjust income to 1995 dollars, the overall decline since 1989 is a little less pronounced. Using this alternative index, median (mean) income is $31,400 The SCF requests information on families' total cash ($49,200) in the 1989 survey, $28,800 ($43,100) in the 1992 survey, income, before taxes, for the calendar year preceding and $30,700 ($44,100) in the 1995 survey. TSjj The Survey of Consumer Finances The Survey of Consumer Finances (SCF) is a triennial differences between figures for 1992 reported here and survey sponsored by the Federal Reserve with the coopera- those published earlier in the Federal Reserve Bulletin are tion of the Department of the Treasury. It is designed to attributable to additional statistical processing of the data. provide detailed information on U.S. families' balance To provide a larger context, some information is also sheets and their use of financial services, as well as on their included from the final version of the 1989 SCF. The SCFs pension rights, labor force participation, and demographic for 1992 and 1995 were conducted by the National Opincharacteristics at the time of the interview. The survey also ion Research Center at the University of Chicago (NORC) collects information on total family income, before taxes, between July and December of each survey year. For the for the calendar year preceding the survey. The term "fam- 1992 survey, 3,906 families were interviewed, and for the ily" as it is used here is more comparable to the U.S. Bureau 1995 survey, 4,299 were interviewed. of the Census definition of "household" than to Census's All dollar figures in this article are adjusted to 1995 use of "family," which excludes single people. The appen- dollars using the consumer price index (CPI) for all urban dix to this article provides a more detailed description of the consumers. Concerns about how accurately the CPI repre- SCF, including a more complete definition of this term. sents inflation for families have been discussed in the The underlying statistical methodology of the surveys literature. If, as generally supposed, the index overstates has been largely unchanged since 1989, and the question- the true degree of inflation, upward adjustments to past naires have been modified only slightly, mostly to reflect dollar amounts will appear too large, and trends in positive changes in the availability of financial services or in the dollar amounts will be biased downward. An index somefinancial behavior of families. Thus, the data since that time times proposed as an alternative to the CPI is the implicit are comparable. price deflator for personal consumption expenditure (PCE), The need to measure financial characteristics imposes which is reported as a part of the national income and special requirements on the survey design. The survey must product accounts. Over 1989-95, price changes measured provide reliable information both on items that are broadly by the CPI and the PCE deflator differed by a relatively distributed in the population—for example, vehicle small amount. ownership—and on items that are highly concentrated in a To provide a measure of the significance of the developrelatively small part of the population—for example, invest- ments discussed in this article, standard errors due to ment real estate. To address this problem, the SCF employs sampling are given for selected estimates for the 1992 a dual-frame sample design that includes a standard geo- and 1995 data. Space limits have precluded reporting graphically based random sample and a special oversample such figures for all estimates. No standard errors are given of relatively wealthy families. Weights are used to combine for the 1989 estimates for technical reasons mentioned in information from the two samples for estimates of statistics the appendix. Although we do not directly address the for the full population. statistical significance of the results, the article highlights This article draws principally upon the final data from the findings that are significant or are interesting in a broader 1992 SCF and preliminary data from the 1995 SCF. Any context. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 3 for each age-of-head group through 45-54, and then income rose between the 1992 and 1995 surveys to a it declines (table 1). Education and net worth are level above that in the 1989 survey. Median income positively associated with income in each of the in the 1995 CPS declined further to a level slightly surveys. below the 1992 level. Although only limited external information on Two changes in the CPS over the period considassets and liabilities is available for comparison with ered here make comparing recent estimates from the SCF data at the level of demographic groups, data on two surveys difficult. First, the CPS dramatically household income for the preceding year are avail- increased the size of the maximum income values able from the Current Population Survey (CPS) of the recorded in the survey. This change alone could Bureau of the Census. Like the SCF, the CPS shows cause some income statistics like the mean to increase an overall pattern of decline in median and mean even in the absence of real change. Second, the household income between the 1989 and 1992 survey redesign of the CPS in 1994 substantially altered the periods. In contrast to the SCF, in the CPS mean survey questions and introduced computer-assisted 1. Before-tax family income for previous year, by selected characteristics of families, 1989, 1992, and 1995, and percentage of families who saved, 1992 and 1995 Thousands of 1995 dollars except as noted 1989 1992 1995 Family Percentage Percentage characteristic Percentage of Percentage of Percentage Median Mean of Median Mean of Median Mean of families families families families families who saved who saved 31.8 49.8 110000..00 29.1 43.5 57.1 100.0 30.8 44.3 5555..00 110000..00 (n.a.) (n.a.) (.8) (1.3) (.6) (1.3) Age of head (years) 25.8 35.4 27.2 26.8 33.1 59.3 25.8 26.7 31.9 56.4 • 24.8 35-44 46.3 61.8 23.4 39.1 50.8 57.1 22.8 39.1 48.3 54.1 23.2 45-54 45.7 77.4 14.4 45.5 61.5 59.0 16.2 41.1 64.8 57.6 17.8 55-64 32.1 52.7 13.9 31.6 53.3 59.0 13.2 36.0 52.9 58.5 12.5 65-74 19.3 38.6 12.0 19.3 31.4 53.8 12.6 19.5 37.0 49.6 11.9 16.7 28.5 9.0 14.9 25.3 49.2 9.4 17.3 27.3 51.5 9.8 Education of head No high school 16.7 23.8 24.3 13.4 19.0 38.3 20.4 15.7 21.9 42.7 19.0 High school diploma .. 27.3 36.2 32.1 25.8 32.7 56.9 29.9 26.7 35.2 50.9 31.6 36.0 50.3 15.1 30.5 40.3 59.5 17.7 29.8 39.9 54.2 19.0 51.4 87.0 28.5 48.6 70.8 67.8 31.9 46.3 70.4 67.5 30.5 Race or ethnicity of head White non-Hispanic ... 37.3 56.9 75.1 33.4 47.8 60.9 75.1 33.3 48.6 58.9 77.5 Nonwhite or Hispanic . 18.0 28.5 24.9 20.1 30.3 45.6 24.9 21.0 29.5 41.8 22.5 Current work status of head Professional, 55.5 76.6 16.9 50.9 69.8 68.9 16.8 54.4 72.7 67.9 15.9 Technical, sales, 35.2 43.6 13.4 35.8 41.6 64.5 14.8 34.4 46.2 56.3 14.9 Precision production ... 47.6 50.9 9.6 36.1 43.4 65.6 7.0 41.1 43.8 60.0 8.2 Machine operators and laborers 30.9 35.4 10.6 29.1 34.1 57.6 10.0 32.9 35.6 60.9 13.1 Service occupations ... 19.3 25.8 6.6 21.3 28.7 51.5 6.2 21.1 27.2 50.2 6.6 48.1 111.0 11.2 48.6 82.2 59.2 10.9 39.0 79.0 62.3 9.7 17.3 28.4 25.0 16.5 24.9 48.0 26.0 17.5 27.3 46.1 25.0 Other not working 9.0 17.6 6.7 12.3 22.9 41.6 8.2 12.3 19.9 31.4 6.5 Housing status 41.1 62.8 63.8 37.8 53.0 63.0 63.9 38.1 54.6 60.9 64.7 17.6 26.9 36.2 19.0 26.5 46.6 36.1 18.8 25.5 44.3 35.3 Net worth (1995 dollars) Less than 10,000 13.9 19.2 27.8 14.8 19.8 39.3 27.0 15.4 18.9 36.0 25.8 10,000-24,999 27.1 29.5 9.3 26.2 29.5 52.5 10.4 25.7 28.4 54.1 10.0 25,000-49,999 29.6 33.6 10.1 25.8 30.4 50.0 11.4 32.0 33.9 48.2 11.6 50,000-99,999 36.0 39.5 14.6 32.8 35.9 61.3 15.3 35.2 38.2 57.8 16.9 100,000-249,999 42.9 52.2 21.6 40.9 48.0 67.6 20.7 39.4 47.6 64.4 21.3 250,000 and more 72.0 128.4 16.5 70.0 106.5 78.6 15.2 68.4 111.6 78.2 14.4 NOTE. Dollars converted to 1995 values with the consumer price index (CPI) appendix. Standard errors in parentheses (see appendix for details). The 1989 for all urban consumers. For definitions of family and family head, see survey did not ask families whether they had saved in the preceding year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1997 data collection. According to some estimates, the such occupations, likely reflecting cyclical recovery. redesign may have induced complex changes in mea- In contrast, the share of families with self-employed sured income.4 heads fell over the six-year period. Gains in median and mean income between the 1992 and 1995 surveys were largely concentrated in Changes in Income the groups with net worth between $25,000 and by Demographic Categories $100,000. However, the only group for whom median and mean income were higher in 1995 than in 1989 Between the 1989 and 1995 SCFs, median and mean was the group with net worth between $25,000 and income declined for families headed by persons in $50,000. the 35 to 54 age groups. Median and mean income also declined for all educational groups, with the largest declines for the groups with at least some Family Saving college education.5 Other data in the survey suggest that one explanation for the incomplete recovery of Saving out of current income is an important determithe income of the group with a college degree may be nant of changes in family wealth. Therefore, since that the fraction of the group not working in 1995 1992, the survey has asked respondents whether, over remained above the level of 1989. the preceding year, their family spent less than their Between the 1989 and 1995 surveys, median income, more than their income, or about as much as income rose somewhat for nonwhite and Hispanic their income. Despite the simplicity of this question, families but fell for other families. In contrast to it appears to be a good indicator of families' saving findings in other surveys, the proportion of families behavior.7 Deriving a reliable measure of the dollar in the 1995 SCF that identified themselves princi- amount of spending or saving would require substanpally as either nonwhite or Hispanic declined. This tial additional time from respondents and might addecline may reflect sampling error or other technical versely affect response rates. factors or may be simply a result of a change in the Overall, the proportion of families reporting that way respondents answer this question.6 they saved in the preceding year fell from 57 percent After holding steady between the 1989 and 1992 in 1992 to 55 percent in 1995 (a change that is surveys, the median income of families headed by consistent with the fact that saving rates generally machine operators and laborers (a group commonly decrease in expansions and increase in times of recesreferred to as unskilled blue-collar workers) rose sion). Over this period, the aggregate personal saving in the 1995 survey, and that of families with self- rate as reported in the national income and product employed heads fell. The increase in median income accounts fell from 5.9 percent to 4.7 percent. Accordof machine operators and laborers was accompanied ing to the SCF data, the share of families spending by an increase in the share of families with heads in less than their income declined for most demographic groups. However, there were some interesting exceptions. A somewhat higher proportion of families with 4. See Paul Ryscavage, "A Surge in Growing Income Inequality?" heads aged 75 and more were savers in 1995 than in Monthly Labor Review, vol. 118 (August 1995), pp. 51-61, for a 1992; this finding moderates the traditional tendency discussion of the effects of various factors on the measured income distribution. A general description of the CPS redesign may be found for the share of savers to decline with age. For both in Anne E. Polivka, "Data Watch: The Redesigned Current Population the group with less education than a high-school Survey," Journal of Economic Perspectives, vol. 10 (Summer 1996), diploma and the group of machine operators and pp. 169-80. 5. Published data from the CPS show roughly similar changes over laborers, the proportion of savers rose, possibly as a the six-year period for the groups without a college degree. For result of the cyclical improvement in their incomes. families with heads having at least a college degree, the CPS data Self-employed workers also showed an increased indicate that median income declined slightly between 1989 and 1995 but, in contrast to the SCF estimates, that the mean income of this likelihood of saving in 1995. By net worth category, group rose over the period. In addition to the changes in the CPS only the $10,000 to $24,999 group became more noted earlier, a change between 1989 and 1992 in the education data likely to save, altering only slightly the generally collected in the CPS further complicates the comparison of income for the group with a college degree. positive association between wealth and saving. 6. Data from the CPS, for example, indicate that the fraction of households that identified themselves as nonwhite or Hispanic increased from 1989 to 1995. The CPS gathers this information through a two-part question, asking first about racial identification and 7. See Arthur B. Kennickell, Saving and Permanent Income, second about Hispanic origin. In the SCF, respondents are asked to Finance and Economics Discussion Series 95^4-1 (Board of Governors choose the group with which they most identify from a list that of the Federal Reserve System, 1995), for a more detailed discussion includes "Hispanic" as a choice. of this variable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 5 As in the past, the most common reason for saving 2. Proportion of families citing selected reasons as most important for saving, 1989, 1992, and 1995 given in 1995 was to increase liquidity, a category that includes a variety of precautionary motives Percent (table 2).8 However, the data show some strong shifts Reason 1989 1992 1995 in the motives for saving between 1989 and 1995. Education 8.1 9.0 10.9 Families became progressively more likely to report For the family 3.1 2.7 2.6 saving for retirement—the increase perhaps reflect- Buying own home 4.9 4.0 5.4 Purchases 7.9 5.2 7.7 ing the rising share of baby boom families in the Retirement 18.4 19.3 23.5 Liquidity 34.2 34.0 33.1 population as well as the perceived uncertainty of Investments 8.0 7.6 4.3 future retirement benefits. The frequency of reporting Other reasons 6.7 6.2 5.8 of saving for education also continued to rise, a trend NOTE. Figures sum to more than 100 percent because some families cited more than one reason as most important. that is likely related to demographic shifts and continuing increases in the cost of college education. however, both median and mean net worth in 1995 NET WORTH were below the 1989 level, and the mean was below the 1992 level. After falling between 1989 and 1992, both median Changes in median and mean net worth differed and mean net worth rose. By 1995, median net worth across age-of-head groups. From 1992 to 1995, had returned to virtually the same level as in 1989, median net worth increased for families with heads but mean net worth had not fully recovered (table 3).9 less than age 55, while the mean for each of these Median net worth rose 6.8 percent between 1992 and groups held steady or declined. In contrast, median 1995. From 1992 to 1995, mean net worth rose net worth hardly changed for families with heads 2.7 percent, but it was still down 5.0 percent from aged 65 to 74, while the mean increased. 1989.10 Generally, a rise in median net worth that is The data within each year show net worth rising larger than a rise in the mean suggests relatively less with the level of education of the family head, but growth for wealthy families than for families in the over 1992-95, both median and mean net worth middle of the wealth distribution. moved up markedly only for the groups with education at the level of a high-school diploma or less. Over 1989-95, median and mean net worth rose only Changes in Net Worth for the group with a high-school diploma. by Demographic Categories The 1989 and 1992 surveys showed an appreciable increase in the median and mean net worth of non- When these changes in the overall distribution of net white and Hispanic families, although their levels of worth are disaggregated by demographic categories, net worth remained substantially below those of other the picture becomes more complex. Between 1992 families. The 1995 survey indicated that the median and 1995, median net worth rose for groups with net worth of nonwhite and Hispanic families had incomes of less than $25,000. These groups also had changed little since 1992, whereas mean net worth higher median net worth in 1995 than in 1989, as did had fallen below the level of 1989. For other families, the group with incomes of $100,000 or more. The mean and median net worth had risen from the patterns of increases at the top and bottom of the depressed level of 1992 but still remained below the income distribution are similar for mean net worth. levels of 1989. For families in the $25,000^19,999 income group, Over the six-year period, the changes in net worth by occupation classes show some similarity to the changes in family income. Median and mean net worth were higher in 1995 than in 1989 for families 8. All families were asked to report a saving motive regardless of with heads who were in technical, sales, and clerical whether they were currently saving. jobs; machine operators and laborers; service work- 9. The asset values reported in this article do not include any adjustments for future tax liabilities. For example, a family that sold ers; and retired persons. In contrast, median and its stock would be required to pay taxes on any increase in the value of mean net worth were lower in 1995 than in 1989 for the stock. those in professional and managerial jobs, precision 10. As with family income, the choice of the CPI or the PCE deflator to adjust the data makes little difference to the overall conclu- production jobs, and self-employment. For "others sions. If the data are adjusted to 1995 dollars using the PCE deflator, not working"—including unemployed workers, stumedian (mean) net worth is $55,800 ($213,300) in 1989 and $52,200 dents, and homemakers—median net worth rose, and ($197,600) in 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1997 3. Family net worth, by selected characteristics of families, 1989, 1992, and 1995 Thousands of 1995 dollars except as noted 1989 1992 1995 Family characteristic Percentage Percentage Percentage Median Mean of Median Mean of Median Mean of families families families All families 56.5 216.7 100.0 52.8 200.5 100.0 56.4 205.9 100.0 (n.a.) (n.a.) (3.2) (15.6) (3.3) (14.0) Income (1995 dollars)' Less than 10,000 1.6 26.1 15.4 3.3 30.9 15.5 4.8 45.6 16.0 10,000-24,999 25.6 77.9 24.3 28.2 71.2 27.8 30.0 74.6 26.5 25,000-49,999 56.0 121.8 30.3 54.8 124.4 29.5 54.9 119.3 31.1 50,000-99,999 128.1 229.5 22.3 121.2 240.8 20.0 121.1 256.0 20.2 100,000 and more 474.7 1372.9 7.7 506.1 1283.6 7.1 485.9 1465.2 6.1 Age of head (years) Less than 35 9.2 66.3 27.2 10.1 50.3 25.8 11.4 47.2 24.8 35-44 69.2 171.3 23.4 46.0 144.3 22.8 48.5 144.5 23.2 45-54 114.0 338.9 14.4 83.4 287.8 16.2 90.5 277.8 17.8 55-64 110.5 334.4 13.9 122.5 358.6 13.2 110.8 356.2 12.5 65-74 88.4 336.8 12.0 105.8 308.3 12.6 104.1 331.6 11.9 75 and more 83.2 250.8 9.0 92.8 231.0 9.4 95.0 276.0 9.8 Education of head No high school diploma 28.5 92.1 24.3 21.6 75.8 20.4 26.3 87.2 19.0 High school diploma 43.4 134.4 32.1 41.4 120.6 29.9 50.0 138.2 31.6 Some college 56.4 213.8 15.1 62.6 185.4 17.7 43.2 186.6 19.0 College degree 132.1 416.9 28.5 103.1 363.3 31.9 104.1 361.8 30.5 Race or ethnicity of head White non-Hispanic 84.7 261.4 75.1 71.7 237.8 75.1 73.9 244.0 77.5 Nonwhite or Hispanic 6.8 82.1 24.9 16.9 87.9 24.9 16.5 74.4 22.5 Current work status of head Professional, managerial 106.6 262.7 16.9 78.8 248.5 16.8 89.3 252.8 15.9 Technical, sales, clerical 40.9 98.9 13.4 48.0 105.4 14.8 43.3 109.3 14.9 Precision production 58.4 94.2 9.6 38.4 85.5 7.0 43.5 79.3 8.2 Machine operators and laborers 23.1 67.2 10.6 23.5 56.8 10.0 37.3 70.0 13.1 Service occupations 9.3 53.2 6.6 15.7 52.9 6.2 15.8 60.0 6.6 Self-employed 200.7 765.4 11.2 155.6 644.3 10.9 152.9 731.5 9.7 Retired 77.5 199.2 25.0 76.3 201.2 26.0 81.6 218.3 25.0 Other not working 0.7 62.9 6.7 5.5 68.5 8.2 4.5 60.4 6.5 Housing status Owner 119.9 311.7 63.8 106.1 289.6 63.9 102.3 295.4 64.7 Renter or other 2.4 49.4 36.2 3.6 42.7 36.1 4.5 42.2 35.3 NOTE. See note to table 1. 1. For the calendar year preceding the survey. mean net worth declined. Changes for this group are from 28 percent in 1989 to 31 percent in 1992 likely dominated by cyclical variation in the composi- to 34 percent in 1995 (table 4). By definition, tion of the group. Median net worth moved down consistently for 4. Distribution of amount of financial assets of all families, homeowners over the six-year period, whereas it by type of asset, 1989, 1992, and 1995 moved in an opposite direction for renters. In 1995, Percent mean net worth for both groups remained below the Financial level of 1989. The results for homeowners do not asset 1989 1992 1995 appear to be driven by shifts in the level of home Transaction accounts 19.7 17.7 13.5 values, which generally rose over the period. Possible Certificates of deposit 10.4 8.2 5.5 Savings bonds 1.6 1.2 1.4 explanations could be the influx of new homeowners, Bonds 11.0 8.5 5.5 an increase in the proportion of homeowners with 14.6 16.6 18.0 Mutual funds (excluding mortgages, and a rise in the amount of mortgage debt money market funds) 5.0 7.7 13.2 Retirement accounts 18.8 24.4 25.1 owed. Cash value of life insurance ... 6.2 6.3 7.9 Other managed assets 6.6 5.5 5.7 Other 6.0 3.9 3.2 Total 100 100 100 ASSETS MEMO Financial assets as a percentage of total assets .. 27.9 30.5 34.1 According to the SCF, the share of financial assets NOTE. In this and following tables, figures may not sum to totals because of in families' total asset holdings has risen steadily, rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 7 the share of nonfinancial assets—mainly vehicles, accounts increased substantially for families headed real estate, and businesses—fell correspondingly. by machine operators and laborers, largely because of cyclical improvements for the group, and declined substantially for families with self-employed heads, Financial Assets largely because of a shift in the composition of the group. While median account balances declined Substantial shifts in the composition of financial slightly for most groups, there were three notable assets from 1992 to 1995 generally continued trends exceptions: the median declined markedly for observed from 1989 to 1992. The share of financial assets held in transaction accounts and certificates of deposit, the traditional saving vehicles, fell sharply, from 30 percent in 1989 to 26 percent in 1992 to only Families without a Checking Account 19 percent in 1995. At the same time, the share of tax-deferred retirement accounts, publicly traded The portion of families without any type of transaction stocks, and mutual funds in financial assets rose account (checking, savings, and money market deposit strongly, from 38 percent in 1989 to 49 percent in accounts; money market mutual funds; and call accounts 1992 to 56 percent in 1995. at brokerages) was about 13 percent in both 1992 and Although the proportion of families having at least 1995—down from 15 percent in 1989. some financial assets rose only slightly, ownership More narrowly, the portion of families without a increased considerably for families earning less than checking account fell continuously over the six-year $10,000 a year, for nonwhite and Hispanic families, period, from 18.9 percent in 1989 to 16.5 percent in 1992 and for families headed by precision production to 15.1 percent in 1995. Among these families, 85.0 perworkers or machine operators and laborers (table 5). cent had incomes of less than $25,000 (48.4 percent had incomes of less than $10,000), 59.5 percent had heads Overall, median financial assets rose a bit; this gain under age 45 (36.9 percent had heads under 35), and was shared by most demographic groups except fami- 54.0 percent were nonwhite or Hispanic. The survey lies with heads aged 65 and older, for whom the asked all such families the reason they did not have an median fell.11 account, and several interesting patterns appear in the responses (table below). From 1989 to 1995, a declining portion of such fami- Transaction Accounts and Certificates of Deposit lies reported that they did not write enough checks to make an account worthwhile, although this reason From 1992 to 1995 the proportion of families having remained the most commonly reported. A sharp increase transaction accounts—checking, savings, and money in the expressed dislike of banks appears in 1995. The market deposit accounts; money market mutual proportion reporting that they had insufficient money for an account remained approximately unchanged. At the funds; and call accounts at brokerages—held steady, same time, the proportion reporting that they could not whereas the median holdings in such accounts fell a manage or balance a checking account almost doubled. little. In 1995, families that had no transaction The importance of service charges as a reason declined in account were clustered mostly in lower-income and 1995, and reporting of minimum balance requirements as younger age groups. However, ownership rates for a reason was unchanged from 1992. lower-income groups were substantially higher in 1995 than in 1989. The discussion in the box "Fami- Reasons reported by families without a checking account lies without a Checking Account" gives some backfor not having one, 1989, 1992, and 1995 ground on the reasons survey respondents gave for Percent not having accounts. For most demographic groups, the percentage of Response category 1989 1992 1995 families having transaction accounts changed little Do not write enough checks between 1992 and 1995. However, ownership of such to make it worthwhile 34.3 30.4 27.1 Minimum balance is too high ... 7.6 8.6 8.6 Do not like dealing with banks .. 15.0 15.3 22.8 Service charges are too high 8.4 11.2 7.9 No bank has convenient hours or location 1.2 .9 1.2 11. In discussing the dollar holdings of detailed components of net Do not have enough money 21.8 20.9 20.5 Cannot manage or balance worth of the demographic groups considered in this article, we present a checking account 4.6 6.4 8.6 only the median amounts held. In general, the median is a better Other 7.1 5.7 3.4 indicator of typical holdings of an item than the mean, especially Total 100 100 100 when ownership of the item is concentrated among a relatively small number of families. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1997 5. Family holdings of financial assets, by selected characteristics of families and type of asset, 1992 and 1995 » A. 1992 Survey of Consumer Finances cha F ra a c m te il r y is tic a T c a c c r o a ti n u o s n n - t s CDs S b a o v n in d g s s Bonds Stocks M fu u n tu d a s l a R c m c e o t e i u n re n t - ts ins L ur if a e n ce m O an th ag er e d fi O na t n h c e i r a l fin a A a s n n s c e y i t a l Percentage of families holding asset AU families 87 ( . - 0 7 ) 16 ( . . 7 6 ) 22 ( . . 3 8 ) 4 ( . . 2 4 ) 16 ( . . 9 9 ) 10 ( . . 4 6 ) 3 ( 7 1 . . 9 1 ) 34 ( . 9 8 ) 4 ( . . 0 3 ) 10 (. .8 4 ) 90 ( . . 3 7 ) I L 2 5 1 1 n 5 0 e 0 0 c s , , , 0 o 0 0 0 s , m 0 0 0 0 t 0 0 0 0 e h 0 - - - a 4 9 2 ( n 1 a 9 9 4 n 9 , , , 1 9 9 9 d 9 0 9 9 9 5 , 9 9 9 m 0 0 d o 0 o r e ll ars) 5 9 9 8 9 9 4 8 3 9 . . . . . 2 3 4 5 4 2 2 1 1 8 1 0 7 7 . . . . . 0 8 0 0 0 2 3 3 1 5 6 9 4 1 . . . . . 1 4 9 5 6 2 2 2 6 1. . . . 9 0 0 2 2 5 1 3 7 8 0 6 . . . . . 6 5 9 7 4 3 1 1 2 4 0 1 5 . . . . . 6 9 5 4 3 4 6 8 1 5 1 7 3 9 . . . . . 0 6 4 1 8 2 4 4 5 1 5 0 6 7 4 . . . . . 2 9 6 2 9 1 2 6 3 0 . . . . 6 3 8 9 1 1 1 9 9 1 0 7 . . . . . 5 3 7 2 9 6 8 9 9 9 5 7 7 9 9 . . . . . 7 7 4 3 4 A L 3 4 5 6 7 5 5 5 g 5 5 e e s - - - - a s 4 5 6 7 n o 4 4 4 4 t d f h a h m n e a o 3 d r 5 e (years) 8 8 8 9 9 8 1 9 6 0 1 8 . . . . . . 6 1 9 2 7 6 2 3 3 1 7 9 0 1 7 5 . . . . . . 0 6 0 6 9 2 2 2 2 1 1 1 2 5 9 9 3 4 . . . . . . 8 1 3 3 8 1 2 4 5 7 8 1 . . . . . . 6 8 4 5 4 5 2 1 1 1 1 1 1 0 8 9 6 9 . . . . . . 6 7 4 0 2 6 1 1 1 1 5 9 0 5 4 4 . . . . . . 2 4 9 1 3 0 2 4 5 5 3 9 6 0 0 4 6 . . . . . . 5 8 0 5 1 2 2 3 4 3 3 3 5 6 2 8 9 4 . . . . . . 6 1 2 3 2 6 3 5 5 5 1 5 . . . . . . 4 0 1 7 7 9 1 1 1 1 1 1 2 6 0 1 0 . . . . . . 1 0 7 3 0 6 9 9 8 9 9 9 2 1 5 2 1 1 . . . . . . 7 0 9 6 0 8 R W N a o h c n i e t w e o h n r i t o e e n th - o H n r i i H c s i p t i y s a p n a o ic n f ic h ea . d . . 9 6 2 9 . . 9 1 1 7 9 . . 8 6 2 1 5 1 . . 8 7 5 1 . . 2 3 20 6 . . 4 3 1 3 2 . . 4 7 4 2 3 1 . . 3 6 3 2 8 4 . . 3 3 4 1 . . 9 2 1 7 1. .8 8 9 7 5 4 . . 4 8 T C P M P S S O R r r e e e u e t a o e c r h l r t f c c v f i h r e - r e h i i e n r e e s c s i n i i d m n e s n o c t i e a o n p o o w l t l n , o c o p o a w c p y s r r l u e a o , k e o p r l d d r m e a a s k u s t t t a i o c , a i n n o t r t c g i s u a n o l s g s e n a e r n o i r c d i f a a l l h l a e b a o d r ers 9 9 8 8 7 9 8 5 7 3 0 7 7 5 5 9 . . . . . . . . 7 7 1 8 7 8 8 8 3 1 1 1 6 6 8 6 0 3 5 8 . . . . . . . . 0 9 5 4 8 1 0 5 3 3 2 2 2 1 1 1 4 0 5 2 3 6 4 0 . . . . . . . . 7 4 7 3 0 3 4 2 7 2 7 6 1 . . . . . 2 6 1 0 1 2 2 1 1 1 1 7 6 5 4 8 5 1 4 . . . . . . . . 6 9 4 6 2 8 0 3 1 1 1 9 7 4 3 8 2 4 1 . . . . . . . . 1 4 7 2 9 3 6 3 6 4 4 3 2 4 2 1 3 8 9 1 4 8 1 2 . . . . . . . . 6 2 8 2 8 5 0 3 4 3 3 3 2 4 3 1 3 8 5 0 3 0 4 6 . . . . . . . . 7 9 3 2 8 9 0 9 7 2 3 2 2 5 1 * . . . . . . . 1 3 2 9 6 4 6 1 1 1 1 1 1 7 1 6 0 1 0 8 5 . . . . . . . . 7 9 3 8 3 9 8 1 9 9 9 8 9 8 8 6 9 6 0 6 8 3 8 7 . . . . . . . . 1 7 5 0 1 5 2 0 H O Re o w n u n t s e e in r r g o r s o ta t t h u e s r 9 7 3 5 . . 7 1 21 8 . . 4 3 2 1 7 3 . . 2 5 5 1 . . 9 3 22 7 . . 2 5 1 4 3 . . 5 6 4 2 7 1 . . 2 4 4 2 2 0 . . 9 4 5 1 . . 2 7 1 9 3 . . 6 0 9 81 5 . . 1 5 Median value of holdings for families holding asset (thousands of 1995 dollars) All families 2 ( . . 5 1 ) 1 (1 1 . . 0 2 ) ( . . 7 1 ) 3 ( 2 5 . . 6 4 ) ( 8 1 . . 7 2 ) 1 (1 7. . 4 7 ) 1 (1 5. . 2 3 ) 3 ( 3 .2 ) 2 ( 1 5 . . 7 3 ) 2 ( . . 7 4 ) 12 (. .0 9 ) I L 2 5 1 1 n 5 0 e 0 0 c , s , , 0 o 0 0 0 s , m 0 0 0 0 t 0 0 0 e 0 h - 0 - - a 4 9 2 ( n 1 a 9 9 4 9 n , , , 1 9 9 9 9 d 0 9 9 9 5 , 9 9 9 m 0 0 d o 0 o r . e l . l a .. rs . ) .. 2 2 4 0 1 . . . . . 3 9 5 3 2 2 1 1 6 1 9 4 1 . . . . . 5 7 8 6 2 1 1 . . . . . 2 5 5 1 1 4 2 9 1 1 1 7 4 . . . . 2 7 1 6 3 4 4 5 8 5 . . . . . 0 3 2 7 0 2 3 1 1 7 1 2 5 6 . . . . . 6 7 2 6 3 2 5 7 5 9 3 5 . . . . . 9 8 0 3 6 1 3 5 1 1 1 . . . . . 0 1 4 7 4 2 7 1 1 1 1 7 9 . . . . 7 4 2 5 2 2 7 2 3 1 . . . . . 3 1 2 3 1 1 3 9 1 4 7 7 1 1 . . . . . 1 7 1 7 5 A L 3 g 5 e e ^ s s 1 o t 4 f h a h n e a 3 d 5 (years) 2 1 . . 2 4 4 5 . . 9 4 . . 4 7 2 1 1 0 . . 7 9 4 2 . . 3 2 1 2 9 . . 7 5 5 9 . . 4 8 2 3 . . 0 8 21 8 . . 7 7 3 1 . . 3 1 1 4 0 . . 0 5 4 5 6 75 5 5 5 - - - a 5 6 7 n 4 4 4 d more 3 4 3 3 . . . . 2 3 9 3 2 2 1 1 8 3 6 . . . . 7 7 9 3 1 1 . . . . 9 7 1 2 4 5 3 3 3 4 4 8 . . . . 4 2 7 0 2 1 1 1 7 4 1 6 . . . . 1 1 3 3 2 3 2 1 3 2 2 6 . . . . 9 8 6 3 2 2 3 3 1 8 0 0 . . . . 7 2 4 4 4 7 2 2 . . . . 9 5 3 1 4 2 3 2 3 1 4 1 . . . . 4 7 7 7 5 5 5 7 . . . . 4 4 4 6 2 2 2 2 0 9 6 2 . . . . 9 0 3 0 R W N a o h c n i e t w e o h n r it o e e n t - h o H n r i i c H s i p t i y a sp n a o ic n f i h c ea . d . . 3 1 . . 0 1 1 8 1 . . 7 9 3 3 2 2 . . 6 0 6 8 . . 5 7 1 1 7 8 . . 4 4 1 1 6 0 . . 3 9 3 3 . . 3 5 24 9 . . 1 8 3 1 . . 1 4 1 3 6 . . 4 3 T C P P M S S R O r r e e e u e t o e a c r l h r t c c f f v i h r e - r e i h e i n r s e e s c n i i i d m s n e o n c t i e a n o o p o w l t n l , o c o p o a c w p s y r r l u e a o , k e o p r l d d r m e a a s k u s t t t a i o c , a i n n o t r t c g i u s a n o l s g e s n a r e n o i r c d i f a a l l h l a e b a o d rers 3 2 2 5 3 1 1 . . . . . . . . 7 2 2 4 3 3 9 1 2 1 1 1 7 2 7 1 0 7 6 0 . . . . . . . . 1 8 6 3 7 1 3 9 1 1 . . . . . . . . 1 5 3 5 5 5 5 1 3 4 4 3 1 8 3 8 4 6 . . . . . 0 4 3 7 3 1 1 1 6 4 8 2 4 0 7 1 . . . . . . . . 8 0 1 2 3 9 8 3 2 2 1 1 1 1 5 6 7 7 0 6 5 1 . . . . . . . . 1 1 5 1 9 3 6 5 2 2 1 1 1 1 5 6 9 7 1 0 8 . . . . . . . . 9 1 4 9 3 1 5 4 4 4 3 3 6 3 2 4 . . . . . . . . 3 1 3 0 9 0 5 9 2 4 9 2 1 1 3 9 1 3 6 1 • . . . . . . . 7 4 8 7 4 3 5 3 2 2 7 6 2 1 . . . . . . . . 2 3 2 6 5 0 6 8 2 2 1 1 5 9 4 1 2 0 3 6 . . . . . . . . 8 9 2 5 9 5 6 8 H O Re o w n u n t s e e in r r g o r s t o a t t h u e s r 3 1 . . 6 1 1 8 2 . . 1 0 3 27 2 . . 1 6 1 4 0 . . 0 9 1 1 9 0 . . 5 9 1 5 9 . . 4 0 3 2 . . 8 2 2 2 1 1 . . 7 7 5 1 . . 4 6 22 3 . . 8 2 NOTE. See note to table 1 and note 1, table 3. * Fewer than five observations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 9 5.—Continued B. 1995 Survey of Consumer Finances cha F ra a c m te il r y is tic ac T a c c r o a ti u n o n s n - t s CDs S b a o v n in d g s s Bonds Stocks M fu u n tu d a s l a R c m c e o t e i u n r n e t - ts ins L ur i a fe n ce m O an th ag er e d fin O a t n h c e i r a l fin a A a s n n s c e y i t a l Percentage of families holding asset All families 87.1 14.1 22.9 3.0 15.3 12.0 43.0 31.4 3.8 11.0 90.8 (.6) (.6) (.8) (.3) (-7) (.7) (1.0) (.9) (.4) (-4) (.5) Income (1995 dollars) Less than 10,000 61.1 7.2 5.9 * 2.5 1.8 5.9 15.8 * 8.9 6688..11 10,000-24,999 82.3 16.0 11.8 * 9.2 4.9 24.2 25.2 3.2 8.6 87.6 25,000-49,999 94.7 13.7 27.4 3.2 14.3 12.4 52.6 33.1 4.2 13.2 97.8 50,000-99,999 98.6 15.6 39.9 4.8 26.0 20.9 69.8 42.5 5.3 11.3 99.5 100,000 and more 100.0 21.1 36.3 14.5 45.2 38.0 84.6 54.1 8.0 15.2 100.0 Age of head (years) Less than 35 80.8 7.1 21.1 .5 11.1 8.8 39.2 22.3 1.6 13.5 8877..00 35-44 87.4 8.2 31.0 1.6 14.5 10.5 51.5 28.9 3.4 10.5 92.0 45-54 88.9 12.5 25.1 4.6 17.5 16.0 54.3 37.5 2.9 13.0 92.4 55-64 88.2 16.2 19.6 2.9 14.9 15.2 47.2 37.5 7.1 9.0 90.5 65-74 91.1 23.9 17.0 5.1 18.0 13.7 35.0 37.0 5.6 10.4 92.0 75 and more 93.0 34.1 15.3 7.0 21.3 10.4 16.5 35.1 5.7 5.3 93.8 Race or ethnicity of head White non-Hispanic 92.4 16.5 26.2 3.7 18.2 14.5 47.0 33.5 4.7 11.7 9944..77 Nonwhite or Hispanic 69.1 5.9 11.3 .6 5.5 3.5 29.2 24.4 1.0 8.5 77.4 Current work status of head Professional, managerial 97.4 16.1 36.8 4.6 26.1 21.3 70.3 39.1 5.7 11.6 98.9 Technical, sales, clerical 93.0 9.4 24.5 3.1 15.7 11.7 55.8 29.8 3.6 14.0 96.2 Precision production 88.9 7.3 26.2 * 12.4 9.7 48.5 29.0 2.5 9.9 93.5 Machine operators and laborers .. 84.3 8.2 24.0 1.1 9.0 6.9 47.3 30.1 1.2 10.9 91.5 Service occupations 76.6 5.5 14.0 * 4.0 5.2 24.3 26.1 2.9 10.2 83.3 Self-employed 91.3 18.6 26.0 5.4 18.8 18.2 47.8 41.5 3.1 15.6 94.3 Retired 86.4 23.1 15.1 3.9 16.9 11.0 24.2 31.2 5.4 7.6 88.2 Other not working 59.6 7.8 12.8 .1 5.1 4.6 16.0 13.3 2.7 11.7 66.4 Housing status Owner 94.8 17.1 28.4 4.1 19.3 15.6 52.2 38.1 4.9 9.3 9966..33 Renter or other 73.0 8.6 12.8 .9 8.1 5.4 26.2 19.2 1.8 14.1 80.8 Median value of holdings for families holding asset (thousands of 1995 dollars) All families 2.1 10.0 1.0 26.2 8.0 19.0 15.6 5.0 30.0 3.0 13.0 (.1) (.6) (.3) (8.1) (1.1) (3.0) (1.0) (.4) (7.9) (-5) (1.2) Income (1995 dollars) Less than 10,000 .7 7.0 .4 * 2.0 25.0 3.5 1.5 * 2.0 1.2 10,000-24,999 1.4 10.0 .8 * 5.7 8.0 6.0 3.0 19.7 2.0 5.4 25,000-49,999 2.0 10.0 .7 29.0 6.9 12.5 10.0 5.0 25.0 2.5 12.1 50,000-99,999 4.5 13.0 1.2 9.4 5.7 15.0 23.0 7.0 35.0 3.0 40.7 100,000 and more 15.8 15.6 1.5 58.0 30.0 48.0 85.0 12.0 62.5 23.0 214.5 Age of head (years) Less than 35 1.2 6.0 .5 2.0 3.7 5.0 5.2 3.4 33..88 11..00 55..33 35—44 2.0 6.0 1.0 11.0 4.0 10.0 12.0 5.0 10.8 2.0 11.6 45-54 2.7 12.0 1.0 17.0 10.0 17.5 25.0 6.5 43.0 5.0 24.8 55-64 3.0 14.0 1.1 10.0 17.0 55.0 32.8 6.0 42.0 9.0 32.3 65-74 3.0 17.0 1.5 58.0 15.0 50.0 28.5 5.0 26.0 9.0 19.1 75 and more 5.0 11.0 4.0 40.0 25.0 50.0 17.5 5.0 100.0 35.0 20.9 Race or ethnicity of head White non-Hispanic 2.5 10.0 1.0 26.2 8.6 20.0 17.5 5.0 30.0 4.0 16.9 Nonwhite or Hispanic 1.5 10.0 .5 27.0 5.0 7.8 9.6 5.0 1.8 1.5 5.2 Current work status of head Professional, managerial 3.3 10.0 1.0 17.0 9.3 15.5 23.0 7.0 21.0 3.0 32.1 Technical, sales, clerical 2.0 10.0 .8 13.0 5.0 11.0 11.4 5.0 10.3 1.8 12.7 Precision production 1.5 4.0 1.0 * 4.8 10.0 10.0 5.0 10.0 2.3 8.7 Machine operators and laborers .. 1.2 5.3 .6 3.8 1.3 6.0 7.6 6.0 30.0 1.1 6.7 Service occupations 1.2 8.0 .8 * 5.7 20.0 8.8 3.0 5.0 4.5 3.4 Self-employed 4.4 15.0 1.0 50.0 17.5 25.0 28.0 6.0 39.0 4.0 24.0 Retired 3.1 14.0 2.0 40.0 20.0 48.0 24.0 4.5 52.0 7.0 17.4 Other not working .7 10.0 .4 225.0 2.4 37.0 10.0 3.5 26.0 5.0 3.4 Housing status Owner 3.0 10.0 1.0 36.3 10.0 20.0 20.0 6.0 30.0 5.0 22.3 Renter or other 1.2 8.0 .8 7.0 4.0 10.0 5.6 3.0 20.0 1.7 4.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1997 families with incomes of $100,000 or more and rose families own stocks (see section "Holdings of All for families with heads aged 75 or more and for Types of Publicly Traded Stocks"). nonwhite and Hispanic families. Ownership of certificates of deposit (CDs), another type of deposit traditionally considered a safe invest- Mutual Funds ment, declined broadly, continuing a trend observed since the 1989 survey. The median balances of hold- Continuing a very strong trend seen between 1989 ers of CDs fell more than 40 percent over 1989-95. and 1992, the 1995 results show expansion in the Modest increases were registered for only a few ownership of mutual funds of all types (not including demographic groups. The decreased popularity of money market funds and funds held as a part of a CDs likely reflects the continuing low interest rates in retirement account). The median value of holdings a period when returns to other assets, particularly also continued upward. These changes are not surequities, were rising sharply. prising given the run-up in the stock market, the surge in the number of mutual funds available, and the intense marketing of funds. Changes at a more disaggregated level are mixed. The ownership rate moved up for non-Hispanic Savings Bonds and Other Bonds whites but remained unchanged for other families. Ownership rates rose most strikingly at the top of the Overall, the percentage of families owning savings income distribution and for families with heads aged bonds and the median amount of their holdings rose less than 55. Median holdings show a different picslightly between 1992 and 1995. Increases in ownerture, however, with older families and families at ship were marked for families with heads aged both the top and bottom of the income distribution 65 to 74 and for families with heads working as showing the largest increases. machine operators and laborers or in self-employed occupations. In contrast, direct ownership of other types of Retirement Accounts bonds—that is, excluding bonds held either through mutual funds or as a part of a retirement account— The survey questions on retirement accounts cover fell from 4 percent of families in 1992 to 3 percent in Keogh accounts; individual retirement accounts; and 1995; the median holding also fell sharply, from employer-sponsored plans from which loans or with- $32,600 to $26,200. The declines in direct ownership drawals can be made, such as 401(k) accounts. Over and in median holdings were shared by most demo- 1989-95, the proportion of families owning these graphic groups. As with CDs, the fall in bond holdassets rose strongly, and the share of families' finanings is part of a longer trend that probably reflects a cial assets accounted for by retirement assets also response to lower interest rates. rose. These assets complicate straightforward interpretation of families' portfolios because they may comprise holdings of stocks, bonds, mutual funds, real estate, limited partnerships, or virtually any other Publicly Traded Stocks type of asset. The percentage of families with retirement The percentage of families having direct ownership accounts grew in almost every demographic group of publicly traded stocks—that is, owning stocks between 1992 and 1995. Although some of these other than those held either through mutual funds or changes are not large, they continue a strong trend as a part of a retirement account—held steady from noted between 1989 and 1992. Median holdings of 1989 to 1992 and then fell for most demographic the demographic groups shown in the table moved in groups. The exceptional groups were families with ways that have no obvious systematic interpretation. incomes of $10,000 to $24,999 and those with heads However, the median grew strikingly for families aged 65 and older. with incomes of $100,000 or more. Moreover, for families that continued to hold Other types of retirement plans, particularly stocks, the median value of holdings in 1995 was defined-benefit plans, provide an annuity income in down a little from the 1992 level but identical to the retirement based on workers' wages and years of corresponding 1989 figure. The decline in direct service. Because these annuity benefits are difficult to stockholding is part of a broader shift in the ways that value and frequently depend on complex assumptions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 11 about future work decisions, they are excluded from using it more intensively as an investment vehicle or the asset figures reported here.12 may have held it for sufficient time to have accumu- In general, coverage by any type of employer- lated large cash value. sponsored pension plan remained fairly constant over 1989-95: Around 40 percent of all families had coverage from a current job. However, the type of cover- Remaining Financial Assets age has shifted considerably. The percentage of families participating in a 401(k)-type plan increased Ownership of other managed assets (personal annudramatically over the period, with 19 percent of ities, trusts, and managed investment accounts) and families covered under such a plan in 1989 and other financial assets (a heterogeneous category 27 percent in 1995. At the same time, coverage by including such items as oil and gas leases, futures defined-benefit plans declined from 28 percent in contracts, royalties, proceeds from lawsuits or estates 1989 to 19 percent in 1995. The shift toward 40.1 (k)- in settlement, and loans made to others) showed no type plans places a more obvious demand on workers important movements from 1992 to 1995, just as they to plan for their retirement. had shown no systematic changes from 1989 to 1992. Participation in 401(k)-type plans is voluntary. The overall median of other managed assets moved According to the 1995 SCF, slightly more than one- up, but the pattern of changes over demographic fourth of family heads who were eligible to partici- groups suggests no clear explanation for this finding. pate in such a plan failed to do so in 1995. The data A strong upward shift in the share of such assets indicate that this choice is related strongly to income: invested in stock suggests that the increase in the Heads of families with incomes of less than $25,000 median may be due to asset appreciation. The median were less likely to participate than others. Interest- holding of other financial assets was little changed ingly, among the group of workers who chose not to over the period. participate in these plans, almost half were covered by a defined-benefit plan. Among participants in 401(k)-type plans, less than one-fourth were covered Holdings of All Types of Publicly Traded Stocks by a defined-benefit plan. As noted earlier, families may hold stock many different ways—through direct ownership, through a Cash Value Life Insurance mutual fund, through a retirement account, or through a trust or other type of managed investment account. Cash value life insurance combines an investment Data from the three SCFs between 1989 and 1995 vehicle with insurance coverage in the form of a show that when all these types of ownership are death benefit. In recent years, policies normally combined, stock holding rose dramatically (table 6). referred to as "universal life" have added more com- The proportion of families owning stock through any plex investment elements to the traditional policy. means rose from 32 percent in 1989 to 37 percent in The proportion of families that held cash value insur- 1992 to 41 percent in 1995. The median equity holdance declined between 1992 and 1995, continuing the ing also moved up, as did the share of stock in total downward movement between 1989 and 1992. This financial assets. Moreover, all income and age groups decline may reflect increased competition from the saw a substantial increase in stocks as a share of pure insurance coverage offered by term insurance as financial assets; the shares doubled for families with well as the attraction of other types of investments. incomes of less than $25,000. For those holding cash value insurance, however, the median cash value rose overall and for most of the demographic groups shown—a trend that did not appear in the earlier data. The decrease in Nonfinancial Assets use together with the increase in median value suggests that families who have such insurance may be The counterpart to the strong growth in financial assets of families from 1989 to 1995 was the drop in the share of their assets held in nonfinancial forms (table 7). The composition of family nonfinancial 12. For a calculation of net worth that includes the value of annuity assets changed as well, most notably in the decline pension benefits, see Arthur B. Kennickell and Annika E. Sunden, in the share of such assets allocated to investment "Pensions, Social Security, and the Distribution of Wealth" (Board of real estate and the rise in the shares of business assets Governors of the Federal Reserve System, 1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1997 6. Direct and indirect stock ownership, by selected characteristics of families, 1989, 1992, and 1995 Percent except as noted Median value, among families Families having direct Stock holdings' share with holdings Family or indirect stock holdings (thousands of 1995 dollars) of group's financial assets characteristic 1989 1992 1995 1989 1992 1995 1989 1992 1995 All families 31.7 37.2 41.1 10.4 11.5 13.5 26.3 34.4 40.4 Income (1995 dollars) Less than 10,000 .... 2.3 6.9 6.0 35.0 5.9 4.0 10.0 15.2 21.1 10,000-24,999 13.1 19.4 25.3 9.2 4.3 5.0 10.3 18.6 21.6 25,000-49,999 33.1 41.6 47.7 5.5 7.6 8.0 20.3 25.4 33.0 50,000-99,999 54.0 64.1 66.7 10.4 14.6 21.3 25.6 35.1 39.9 100,000 and more ... 79.7 79.1 83.9 47.9 74.6 90.8 31.4 40.2 47.6 Age of head (years) Less than 35 23.3 28.3 38.5 3.7 3.8 5.4 25.4 25.6 32.4 35-44 40.5 42.2 46.7 6.3 8.1 9.0 25.6 30.8 41.4 45-54 40.2 47.3 49.3 12.3 14.4 24.0 29.9 39.4 44.2 55-64 34.2 44.8 41.4 18.6 25.3 20.0 28.4 37.3 45.3 65-74 26.1 31.9 34.0 25.8 21.7 25.0 26.2 34.4 34.3 75 and more 24.7 28.1 28.1 28.2 27.1 28.1 20.7 28.6 39.5 NOTE. See note to table 1 and note 1, table 3. and vehicles. Nonetheless, the primary residence recreational vehicles, airplanes, and boats) fell someremained the largest single part of families' nonfinan- what from 1992 to 1995, but these items remained cial assets. the most widely held nonfinancial assets. The decline A few general patterns in ownership of the types of in ownership was spread over most of the demononfinancial assets are considered here (table 8). graphic groups, although ownership rose for families Ownership rises with income; it also tends to rise with incomes of less than $10,000 and those headed with the age of family head and then may decline in by machine operators and laborers and by service the older age groups. Similar patterns are observed in workers. In contrast, the median value of vehicles the median holdings of these assets over income and owned rose from $7,400 to $10,000 over the threeage groups. Overall, the percentage of families in year period, and it rose for every group. various groups owning some type of nonfinancial A part of the decrease in the percentage of families asset changed little between 1992 and 1995. At the owning vehicles may be attributed to an increase in same time, the median value of the holdings rose for the percentage leasing vehicles, which rose from almost all groups, with the principal exceptions of 3 percent in 1992 to about 5 percent in 1995. Most of families at the top and bottom ends of the income the increase was concentrated among families with distribution. incomes of $25,000 or more. Among the group with incomes of $100,000 or more, the proportion of families leasing a vehicle surged from 10 percent in 1992 Vehicles to 17 percent in 1995. Although the share of families leasing vehicles is fairly small, leased vehicles repre- Ownership of vehicles (automobiles, motorcycles, sented 35 percent of all new vehicles acquired by vans, trucks, sport utility vehicles, motor homes, families in 1995, up from 22 percent in 1992.13 7. Distribution of value of nonfinancial assets of all Primary Residence families, by type of asset, 1989, 1992, and 1995 Percent Between 1992 and 1995, homeownership moved up Nonfinancial asset 1989 1992 1995 slightly, continuing a trend from 1989-92. The median home value showed a similar pattern. Over Vehicles 5.4 5.5 6.9 Primary residence 44.1 45.7 45.9 Investment real estate 21.4 21.4 16.6 Business assets 27.0 25.7 29.0 Other nonfinancial assets 2.1 1.6 2.1 Total 100 100 100 13. For additional evidence on vehicle leasing, see Ana Aizcorbe and Martha Starr-McCluer, Vehicle Ownership, Vehicle Acquisitions, MEMO and the Growth of Auto Leasing, Finance and Economics Discussion Nonfinancial assets as a share of total assets 72.1 69.5 65.9 Series 96-35 (Board of Governors of the Federal Reserve System, 1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 13 demographic groups, changes in ownership rates Other Nonfinancial Assets were mixed. For owners, the median house value generally rose for families with incomes of less than For the remaining nonfinancial assets (a broad cate- $100,000 and fell somewhat for higher-income gory of tangible assets including artwork, jewelry, families. This difference may partly reflect low rates precious metals, and antiques), ownership rates rose a of price appreciation for more expensive houses. bit between 1992 and 1995, while the median amounts of such assets rose more strongly. The median value of these assets rose particularly among older and lower-income families. Investment Real Estate Overall, ownership of investment real estate (vacation homes, rental units, commercial property, farm Unrealized Capital Gains land, undeveloped land, and all other types of real estate except primary residences and property Along with saving out of current income, changes in owned through a business) fell nearly 2 percentage the values of assets such as businesses, real estate, points from 1992 to 1995. The 1992 figure in turn and stocks are a determinant of family wealth. Until was nearly 1 percentage point lower than the 1989 these assets are sold, and thereby appear as part of level. family income, any gains are unrealized. To measure The decline in ownership was widespread. All this part of wealth, the survey obtains information income groups except the lowest were less likely about changes in value from the time of purchase to have investment real estate in 1995 than in of a primary residence, investment real estate, 1992. By age groups, the decrease was concentrated businesses, publicly traded stock, and mutual funds. among families with heads aged less than 65, and Despite the large increase in stock prices from 1989 the change was especially striking for the 55 to 64 to 1995, median and mean unrealized capital gains age group. The changes in median holdings showed fell overall in the 1992 and 1995 surveys (table 9). no clear pattern between 1992 and 1995; however, The declines were apparently driven by substantial increases for the groups with heads between the ages declines of unrealized gains in housing and of 55 and 74 seem to continue a trend apparent since businesses. 1989. LIABILITIES Business Assets Family debt and family assets both rose strongly The fraction of families owning business assets (sole from 1989 to 1995. As a result, family debt as a proprietorships, limited partnerships, other types of proportion of assets (the leverage ratio) held fairly partnerships, subchapter S corporations, other types steady at about 16 percent over the period (table 10). of corporations that are not publicly traded, and other Home mortgages and home equity borrowing as a types of private businesses) fell slightly between share of total family debt grew strongly, however, 1989 and 1995. Ownership declined appreciably for probably because of wider home ownership and a families having incomes of $100,000 and more and continuing shift of debt into these tax-deductible for nonwhite and Hispanic families. In contrast, from forms. The share of credit card debt also grew 1989 to 1992, ownership of businesses rose for non- strongly between 1992 and 1995, but it remained a white and Hispanic families. small part of total family debt. Offsetting these The median value of business assets fell sharply increases was a strong decline in the share of borrowover the entire six-year period. The median declined ing for investment real estate. The share of installbetween 1992 and 1995 for all age groups and for ment borrowing declined between 1989 and 1992 and all income groups except those at each end of then rose slightly between 1992 and 1995.14 the income distribution. Median holdings declined markedly for families headed by self-employed workers, but the composition of this group may have 14. The term "installment borrowing" in this article describes changed between 1992 and 1995 through growth in consumer loans that generally have fixed payments and a fixed term, the portion of the group consisting of "small-scale" such as a standard automobile loan. This usage contrasts with alternative usages that include most types of nonmortgage borrowing by entrepreneurs. households. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 1997 Family holdings of nonfinancial assets, by selected characteristics of families and type of asset, 1992 and 1995 A. 1992 Survey of Consumer Finances Investment Other Any Family Vehicles Primary real Business non- nonfinancial characteristic residence estate financial asset Percentage of families holding asset All families 86.2 63.9 19.3 11.9 8.3 91.0 (.6) (.01) (.9) (.8) (-5) (.4) Income (1995 dollars) Less than 10,000 52.3 37.4 3.7 3.2 5.2 65.5 2 1 5 0 , , 0 0 0 0 0 0 - - 4 2 9 4 , , 9 9 9 9 9 9 9 8 4 5 . . 5 4 5 6 5 7 . . 6 1 1 18 3 . . 4 0 1 7 1 . . 2 0 4 9 . . 6 0 9 9 0 7 . . 3 6 50,000-99,999 97.6 82.1 29.4 16.2 10.0 99.1 100,000 and more .... 97.6 90.5 53.3 41.2 22.0 100.0 Age of head (years) Less than 35 84.1 36.9 8.2 8.5 8.2 86.1 35—44 89.0 64.5 16.5 15.9 9.4 92.6 45-54 93.1 75.4 25.2 15.8 9.7 94.5 55-64 87.0 77.7 35.3 16.0 6.3 93.0 65-74 85.9 79.3 25.1 8.5 6.5 91.6 75 and more 72.8 77.0 15.8 3.8 91.2 Race or ethnicity of head White non-Hispanic 90.7 68.9 21.9 13.5 9.7 94.8 Nonwhite or Hispanic ... 72.7 48.8 11.2 7.1 4.2 79.7 Current work status of head Professional, managerial 94.5 66.5 24.3 9.7 12.6 97.1 Technical, sales, clerical 91.7 62.5 16.5 6.6 7.5 94.0 Precision production 93.5 63.6 19.9 6.8 10.3 95.4 M Se a r c v h ic in e e o o cc p u e p ra a t t o io rs n s a nd laborers 9 8 0 0 . . 2 5 4 5 7 7 . . 2 6 1 4 3 . . 7 7 3 5 . . 6 9 6 8. . 1 1 9 8 2 4 . . 4 9 Self-employed 95.4 76.2 35.4 62.8 12.0 98.2 Retired 78.9 73.6 19.9 4.1 5.4 89.2 Other not working 64.0 35.0 7.9 2.2 5.7 69.0 Housing status Owner 93.3 100.0 24.9 14.8 9.3 100.0 Renter or other 73.7 0 9.4 6.8 6.7 75.2 Median value of holdings for families holding asset (thousands of 1995 dollars) All families 7.4 86.8 48.8 65.1 7.6 74.2 (.2) (3.7) (4.2) (10.8) (.9) (3.3) Income (1995 dollars) Less than 10,000 2.6 38.8 26.0 29.0 1.6 19.3 10,000-24,999 4.5 54.2 21.7 32.6 4.9 39.4 25,000-49,999 7.8 81.4 43.4 54.2 5.4 71.1 50,000-99,999 11.8 108.5 51.5 65.1 13.0 134.6 100,000 and more 17.8 217.0 130.2 260.4 27.1 391.0 Age of head (years) Less than 35 6.4 72.7 34.7 32.6 4.3 18.1 35^44 8.1 97.6 38.0 48.8 8.7 88.4 45-54 9.1 97.6 57.5 108.5 12.5 102.4 55-64 9.0 90.1 54.2 119.3 10.9 115.5 65-74 5.4 70.5 51.5 162.7 9.8 82.6 75 and more 4.8 75.9 54.2 86.8 7.1 75.5 Race or ethnicity of head White non-Hispanic 7.8 92.2 48.8 70.5 7.6 85.5 Nonwhite or Hispanic ... 5.3 54.2 48.8 48.8 9.2 40.4 Current work status of head Professional, managerial 9.4 121.5 70.5 54.2 8.7 108.1 Technical, sales, clerical 8.0 84.4 41.2 48.8 7.6 74.1 Precision production 8.2 81.4 32.6 13.6 5.4 69.2 Machine operators and laborers 6.4 60.8 27.1 19.0 3.3 40.0 Service occupations 5.5 52.1 54.2 32.6 5.4 26.0 Self-employed 11.8 135.6 83.5 97.6 16.3 195.4 Retired 4.9 70.5 46.7 65.1 6.0 70.9 Other not working 4.5 60.8 32.6 30.5 9.8 22.8 Housing status Owner 9.0 86.8 48.8 86.8 8.7 111.9 Renter or other 4.6 54.2 27.1 5.4 5.7 NOTE. See note to table 1 and note 1, table 3. * Fewer than five observations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 15 8.—Continued B. 1995 Survey of Consumer Finances Investment Other Any FFaammiillyy VVeehhiicclleess PPrriimmaarryy real BBuussiinneessss non- nonfinancial characteristic residence estate financial asset Percentage of families holding asset All families 84.2 64.7 17.5 11.0 9.0 91.1 (•7) (.03) (.8) (.6) (.5) (-5) Income (1995 dollars) Less than 10,000 57.7 37.6 6.9 4.8 33..88 6699..88 10,000-24,999 82.7 55.4 11.5 6.2 6.2 89.4 25,000-49,999 92.2 68.4 16.5 9.8 9.6 96.6 50,000-99,999 93.3 84.4 24.9 17.5 11.5 99.1 100,000 and more 90.2 91.1 52.3 32.1 22.6 99.4 Age of head (years) Less than 35 83.9 37.9 77..22 99..33 77..66 8877..66 35-44 85.1 64.6 14.4 13.9 10.2 90.9 45-54 88.2 75.4 23.9 14.8 10.7 93.7 55-64 88.7 82.1 26.9 11.7 9.8 94.0 65-74 82.0 79.0 26.5 7.9 8.9 92.5 75 and more 72.8 73.0 16.6 3.8 5.4 90.2 Race or ethnicity of head White non-Hispanic 88.1 69.4 19.7 1122..66 1100..55 9944..99 Nonwhite or Hispanic 71.1 48.2 10.2 5.4 3.5 78.1 Current work status of head Professional, managerial 90.8 71.1 24.6 11.8 14.5 9966..77 Technical, sales, clerical 88.0 63.4 10.5 6.4 10.6 92.9 Precision production 93.4 66.9 16.2 7.3 9.0 97.2 Machine operators and laborers 91.9 61.2 14.0 5.1 6.5 93.8 Service occupations 83.8 50.5 8.6 3.5 2.0 86.9 Self-employed 85.7 73.9 32.1 58.0 16.1 96.1 Retired 76.6 70.3 18.6 2.9 5.6 88.3 Other not working 60.6 34.8 8.0 3.7 5.9 67.9 Housing status Owner 90.8 100.0 22.3 13.4 1100..33 110000..00 Renter or other 72.2 0 8.7 6.4 6.5 74.8 Median value of holdings for families holding asset (thousands of 1995 dollars) All families 10.0 90.0 50.0 41.0 10.0 83.0 (-3) (2.6) (3.8) (5.9) (.7) (2.8) Income (1995 dollars) Less than 10,000 3.6 40.0 16.2 50.6 22..55 1133..11 10,000-24,999 6.1 65.0 30.0 30.0 8.0 44.5 25,000-49,999 11.1 80.0 40.0 26.3 6.0 81.5 50,000-99,999 16.2 120.0 57.3 30.0 14.0 145.2 100,000 and more 22.8 200.0 130.0 300.0 20.0 319.3 Age of head (years) Less than 35 9.0 80.0 3333..55 2200..00 55..00 2211..55 35-44 10.7 95.0 45.0 35.0 9.0 95.6 45-54 12.4 100.0 55.0 60.0 12.0 111.7 55-64 11.9 85.0 82.5 75.0 10.0 107.0 65 74 8.0 80.0 55.0 100.0 16.0 93.5 75 and more 5.3 80.0 20.0 30.0 15.0 79.0 Race or ethnicity of head White non-Hispanic 10.8 92.0 5500..00 4455..00 1100..00 9933..00 Nonwhite or Hispanic 7.7 70.0 33.5 26.3 8.0 42.1 Current work status of head Professional, managerial 12.4 130.0 5577..33 15.0 1100..00 113333..55 Technical, sales, clerical 10.4 90.0 40.0 17.5 10.0 83.1 Precision production 12.2 78.0 37.5 30.0 5.0 72.9 Machine operators and laborers 10.8 68.0 36.0 24.0 8.0 57.9 Service occupations 7.2 69.0 17.5 80.2 10.0 35.8 Self-employed 12.0 120.0 100.0 71.0 8.0 175.6 Retired 7.3 76.0 45.0 90.0 10.0 78.0 Other not working 6.2 80.0 59.0 12.0 7.0 17.4 Housing status Owner 11.9 90.0 53.0 5500..00 1100..00 111155..44 Renter or other 6.4 * 35.0 26.0 5.0 7.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 1997 9. Family unrealized capital gains, by selected characteristics of families, 1989, 1992, and 1995 Thousands of 1995 dollars 1989 1992 1995 FFaammiillyy cchhaarraacctteerriissttiicc Median Mean Median Mean Median Mean All families 11.7 86.9 8.1 76.8 6.1 68.8 Income (1995 dollars) Less than 10,000 t 9.7 t 14.6 t 18.9 10,000-24,999 .6 33.4 1.2 29.2 .2 26.2 25,000-49,999 12.3 52.1 6.7 46.6 7.0 34.6 50,000-99,999 36.8 86.3 26.1 86.8 27.0 63.1 100,000 and more 132.7 552.2 138.2 497.4 75.7 574.9 Age of head (years) Less than 35 t 26.4 t 16.1 t 12.0 35^4 13.1 66.2 5.4 58.7 4.5 39.8 45-54 41.1 144.8 19.5 112.4 18.8 96.0 55-64 36.2 133.2 31.5 142.3 30.0 133.5 65-74 31.4 132.6 32.5 122.7 30.1 112.6 75 and more 19.2 98.1 27.1 71.9 33.0 95.4 NOTE. See note to table 1 and note 1, table 3. t Less than $50. Families' Holdings of Debts borrowing associated with the acquisition of nonfinancial assets. By age group, the proportion of Overall, the proportion of families with debt rose families borrowing varies only a little for the groups slightly between 1989 and 1992 and then more with heads younger than 65, but it falls off quickly substantially by 1995 (table 11). Following a similar after that. The drop-off in median borrowing in these pattern, the median amount of debt outstanding rose older groups is even sharper. The age pattern is 15 percent from 1992 to 1995 after having been flat largely explained by the paying off of mortgages on over the previous three years. The increases between primary residences. 1992 and 1995 in both the prevalence of borrowing and the median amount of debt owed would normally be expected in a period of economic expansion. The Home Mortgages and Home Equity Borrowing increases were spread widely over demographic groups, with the salient exceptions of families in For homeowners, mortgages serve at least two the highest income group and families with self- purposes: a means of paying for the home and a employed heads. substitute for other borrowing. Since the Tax Reform The prevalence of debt tends to increase with Act of 1986, which phased out the deductibility of family income, but the sizes of the increases are non-mortgage debt, loans secured by home equity fairly small as the level of income rises above (traditional mortgages, home equity loans, and home $25,000. The median amount of debt owed shows equity lines of credit secured by a primary residence) much larger increases with income, likely because of have increasingly served as a source of tax-preferred funds. Declining interest rates between 1992 and 1995 gave families yet another incentive to refinance existing mortgages and obtain funds for other pur- 10. Distribution of amount of debt of all families, by type of debt, 1989, 1992, and 1995 poses at the same time. Percent The proportion of families borrowing through mortgage loans in 1995 was up slightly from the Type of debt 1989 1992 1995 1989 level, but the median amount outstanding rose Home mortgage and home equity about 30 percent over the six-year period. Over loans and lines of credit 56.6 64.2 68.2 Installment loans 13.9 10.3 11.2 the same period, the median value of a primary Other lines of credit 1.0 .7 .4 Credit card balances 2.3 2.8 3.7 residence rose only 4.8 percent; the much larger rise Investment real estate mortgages ... 24.5 19.8 14.4 in the size of mortgage debt suggests that families Other debt 1.7 2.2 2.2 Total 100 100 100 were using more of their home equity for purchases or investments other than the purchase of their pri- MEMO Debt as a percentage of total assets . 15.9 16.3 16.0 mary residence. Both the prevalence of mortgage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 17 borrowing and the median amount owed rose for strong growth likely reflects, among other things, the most demographic groups. decline in some credit card interest rates and the Not included in the debt figures shown for mort- intensive marketing of cards by issuers in recent gages are families that have a home equity line of years. credit that was not being used at the time of the From 1992 to 1995, the use of some type of credit survey. Home equity lines of credit became a less card for borrowing and the median amount borrowed important source of credit between 1992 and 1995; rose for almost all demographic groups. Exceptions both the proportion of families with such a credit line are the groups of families with heads aged 65 or over. and the proportion using the line declined. However, the declines for those families do not entirely reverse the increases observed for these groups between 1989 and 1992. Much of the growth in credit card debt over the Installment Borrowing past several years has been in bank-type cards. Between 1992 and 1995, continuing a trend from The share of families using installment borrowing 1989, the share of families having such cards rose was lower in 1995 than in 1989. Such a decline (from 62 percent to 67 percent), as did the fraction of during a period of strong growth in borrowing probcardholders running a balance on them (from 53 perably reflects a substitution to other types of financing, cent to 56 percent). The median balance for those particularly mortgages, credit card debt, or automowith positive balances rose almost 40 percent, from bile leasing. $1,100 in 1992 to $1,500 in 1995. At the same time, The median amount of installment debt rose the median total credit limit on such cards jumped 22 percent between 1992 and 1995, and much of from $5,400 per cardholding family in 1992 to $9,000 the increase was associated with borrowing for autoin 1995. As a consequence, the median proportion of mobiles. The median amount of installment debt rose the credit limit used by those with balances fell from for most groups, with the exceptions of families with 28 percent in 1992 to 23 percent in 1995. incomes of $100,000 or more and families with selfemployed heads. Investment Real Estate Debt Borrowing on Other Lines of Credit Reflecting in part the decline in the proportion of families having investment real estate, the percentage The use of personal lines of credit other than home of families borrowing to finance such assets declined equity lines declined from 1989 to 1995 for almost from 1992 to 1995 for most groups, whereas the every demographic group. On the demand side, the median amount owed by families that had such loans decline may reflect a strong increase in the use of moved up 8 percent. This divergence in prevalence credit cards or a rise in mortgage refinancing. On the and the amount owed suggests that the families that supply side, many lenders stopped offering unsecured dropped out of the market were those with smaller lines. Changes in the dollar amount of this type of holdings. credit are difficult to evaluate because the instrument is so narrowly used. Other Debt Credit Card Borrowing Other borrowing (loans on insurance policies, loans against pension accounts, borrowings on a margin In 1989, 40 percent of families had an outstanding account, and other unclassified loans) rose slightly balance on some type of credit card—bank-type cards overall between 1992 and 1995. The median amount (such as Visa, Mastercard, Discover, and Optima), of such debt fell 26 percent, however. This movement store and gasoline company cards, travel and enter- results largely from decreases in the amounts bortainment cards (such as American Express and Diners rowed against employer-sponsored pension accounts Club), and other credit cards—after paying their most and against the cash value of life insurance. The use recent bill. The proportion of families with such debt of margin accounts and other loans was little rose over the six years, to 48 percent in 1995. This changed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 1997 11. Family holdings of debt, by selected characteristics of families and type of debt, 1992 and 1995 A. 1992 Survey of Consumer Finances Family Mortgage and Other Credit Investment Other Any characteristic home equity credit card real estate debt debt Percentage of families holding debt All families 39.1 46.1 2.4 43.8 7.8 8.8 73.6 (.7) (.9) (.2) (-9) (.6) (.5) (.7) Income (1995 dollars) Less than 10,000 9.9 30.5 * 23.3 ..66 44..33 4488..33 10,000-24,999 22.3 43.0 1.4 39.7 3.0 6.4 66.2 25,000-49,999 44.0 54.6 2.8 55.8 6.7 10.9 82.5 50,000-99,999 65.7 52.4 3.4 51.3 12.9 9.3 85.4 100,000 and more 74.2 39.8 5.8 34.0 32.5 17.5 88.8 Age of head (years) Less than 35 30.8 61.9 2.9 5511..77 44..55 66..55 8811..99 35-44 55.4 58.1 3.3 50.8 8.8 12.4 86.6 45-54 61.2 50.2 2.7 49.3 12.8 11.0 85.7 55-64 41.1 38.8 1.6 37.0 14.4 9.8 70.6 65-74 18.8 23.1 1.0 32.5 4.6 6.1 52.1 75 and more 8.7 8.2 * 20.4 .7 4.4 31.9 Race or ethnicity of head White non-Hispanic 41.9 46.4 2.7 4444..11 88..99 88..44 7744..44 Nonwhite or Hispanic 30.6 45.5 1.6 42.9 4.3 9.8 71.4 Current work status of head Professional, managerial 56.0 57.2 4.5 5511..22 1122..66 1133..33 8888..44 Technical, sales, clerical 50.7 56.9 2.6 59.5 6.5 7.6 88.7 Precision production 51.3 63.9 2.3 55.0 8.7 9.2 86.2 Machine operators and laborers — 43.2 58.6 2.2 54.5 6.5 10.6 80.6 Service occupations 28.5 57.6 2.9 46.6 * 6.6 80.1 Self-employed 58.6 48.2 3.9 47.5 19.0 12.8 85.8 Retired 16.8 21.2 .6 25.2 3.7 5.3 45.4 Other not working 21.2 41.2 * 29.8 3.6 6.2 65.5 Housing status Owner 61.2 44.3 2.1 46.6 99..77 99..66 7788..77 Renter or other 0 49.4 3.0 38.8 4.4 7.3 64.7 Median value of holdings for families holding debt (thousands of 1995 dollars) All families 47.4 5.0 2.2 1.1 26.0 2.7 19.5 (2.0) (.2) (4) (.1) (4.6) (-4) (1.0) Income (1995 dollars) Less than 10,000 15.2 2.1 * ..55 3388..00 11..66 22..55 10,000-24,999 20.6 3.1 2.9 .9 6.5 1.1 6.3 25,000-49,999 42.3 5.7 1.5 1.2 16.3 2.2 19.3 50,000-99,999 60.8 8.1 2.0 1.6 27.1 3.3 59.3 100,000 and more 99.7 11.2 4.3 2.7 74.9 6.5 120.1 Age of head (years) Less than 35 55.3 5.0 11..33 11..00 1144..22 11..55 1111..55 35-44 59.7 5.4 2.0 1.3 27.1 3.3 39.1 45-54 43.4 5.1 5.4 1.6 36.9 3.3 31.3 55-64 32.6 4.8 4.3 1.1 29.5 3.3 22.6 65-74 18.4 4.3 4.3 .9 16.3 1.6 5.4 75 and more 30.4 3.4 * .6 82.7 2.9 2.6 Race or ethnicity of head White non-Hispanic 48.8 5.5 22..22 11..11 2266..66 33..33 2233..99 Nonwhite or Hispanic 33.8 3.5 2.4 .9 19.5 2.2 9.7 Current work status of head Professional, managerial 65.1 6.2 33..33 1.5 3355..88 33..33 4422..44 Technical, sales, clerical 51.5 5.6 1.3 1.1 13.6 2.2 24.8 Precision production 47.7 5.0 1.4 1.1 15.2 3.3 25.3 Machine operators and laborers 28.1 5.2 1.1 1.1 9.8 2.2 16.3 Service occupations 32.9 3.8 2.2 • 1.6 7.4 Self-employed 73.0 6.9 4.3 58.6 5.4 57.3 Retired 19.6 3.7 4.3 19.5 2.2 6.2 Other not working 28.5 2.8 * 29.3 2.7 5.1 Housing status Owner 47.4 6.1 3.0 1.2 29.5 33..33 4411..22 Renter or other * 4.0 1.3 1.0 17.5 1.5 4.2 NOTE. See note to table 1 and note 1, table 3. * Fewer than five observations, ft Item held by less than 0.05 percent of the group. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 19 11.—Continued B. 1995 Survey of Consumer Finances Other Family Mortgage and Credit Investment Other Any characteristic home equity card real estate debt debt credit Percentage of families holding debt All families 41.1 46.5 1.9 47.8 6.3 9.0 75.2 (.6) (.8) (.2) (.8) (.4) (.6) (-7) Income (1995 dollars) Less than 10,000 8.9 25.9 * 25.4 1.6 6.6 48.5 10,000-24,999 24.8 41.3 1.4 41.9 2.5 8.7 67.3 25,000-49,999 47.3 54.3 2.0 56.7 5.8 8.5 83.9 50,000-99,999 68.7 60.7 3.2 62.8 9.5 10.0 89.9 100,000 and more 73.6 37.0 4.0 37.0 27.9 15.8 86.4 Age of head (years) Less than 35 32.9 62.2 2.6 55.4 2.6 7.8 83.8 35-44 54.1 60.7 2.2 55.8 6.5 11.1 87.2 45-54 61.9 54.0 2.3 57.3 10.4 14.1 86.5 55-64 45.8 36.0 1.4 43.4 12.5 7.5 75.2 65-74 24.8 16.7 1.3 31.3 5.0 5.5 54.5 75 and more 7.1 9.6 tt 18.3 1.5 3.6 30.1 Race or ethnicity of head White non-Hispanic 43.5 46.4 2.1 47.5 66..99 99..11 7755..88 Nonwhite or Hispanic 32.7 46.9 1.3 48.8 4.4 8.5 73.1 Current work status of head Professional, managerial 63.4 56.2 3.7 56.8 10.5 10.9 90.3 Technical, sales, clerical 51.4 61.1 2.0 60.1 4.1 12.3 88.6 Precision production 53.3 64.5 2.3 64.8 5.4 9.1 88.3 Machine operators and laborers 44.1 61.3 .9 56.9 6.8 9.5 86.0 Service occupations 34.6 50.3 * 53.1 2.2 9.0 82.6 Self-employed 51.3 45.6 3.6 44.9 15.4 10.0 81.9 Retired 19.0 18.4 .3 26.6 3.6 4.8 45.9 Other not working 17.9 42.8 * 38.7 2.7 9.8 65.0 Housing status Owner 63.6 46.0 1.5 51.4 7.9 8.7 80.2 Renter or other 0 47.5 2.6 41.2 3.5 9.5 66.2 Median value of holdings for families holding debt (thousands of 1995 dollars) All families 51.0 6.1 3.5 1.5 28.0 2.0 22.5 (2.1) (.3) (.7) CD (2.9) (.2) (1.2) Income (1995 dollars) Less than 10,000 14.0 2.9 * .6 15.0 2.0 22..66 10,000-24,999 26.0 3.9 3.0 1.2 18.3 1.2 9.2 25,000-49,999 46.0 6.6 3.0 1.4 25.0 1.5 23.4 50,000-99,999 68.0 9.0 2.2 2.2 34.0 2.5 65.0 100,000 and more 103.4 8.5 19.5 3.0 36.8 7.0 112.2 Age of head (years) Less than 35 63.0 7.0 1.4 11..44 2222..88 11..55 1155..22 35-44 60.0 5.6 2.0 1.8 30.0 1.7 37.6 45-54 48.0 7.0 5.7 2.0 28.1 2.5 41.0 55-64 36.0 5.9 3.5 1.3 26.0 4.0 25.8 65-74 19.0 4.9 3.8 .8 36.0 2.0 7.7 75 and more 15.9 3.9 tt .4 8.0 3.0 2.0 Race or ethnicity of head White non-Hispanic 54.0 6.4 3.5 1.5 2299..00 22..00 2277..22 Nonwhite or Hispanic 36.5 5.0 .8 1.2 25.0 1.5 12.2 Current work status of head Professional, managerial 79.0 8.2 2.5 2.2 26.3 2.7 65.1 Technical, sales, clerical 52.6 8.0 .6 1.7 25.0 1.6 30.1 Precision production 50.0 6.3 1.5 1.4 35.0 2.0 29.5 Machine operators and laborers 36.8 5.2 1.6 1.3 17.0 1.0 15.2 Service occupations 38.5 5.1 * 1.3 13.0 1.0 12.0 Self-employed 62.0 5.8 8.0 2.6 50.0 4.8 42.2 Retired 23.3 4.4 3.8 1.0 23.0 2.5 6.5 Other not working 45.0 5.0 * .8 20.0 1.7 7.5 Housing status Owner 51.0 6.9 5.0 1.5 27.0 2.5 46.0 Renter or other * 5.0 1.5 1.3 28.0 1.5 4.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Federal Reserve Bulletin • January 1997 Reasons for Borrowing 13. Distribution of amount of debt of all families, by type of lending institution, 1989, 1992, and 1995 The SCF provides detailed information on the rea- Percent sons that families borrow money (table 12).15 One Type of institution 1989 1992 1995 subtle problem with the use of these data is that, even though money is borrowed for a particular purpose, it Commercial bank 29.4 33.2 35.1 Savings and loan or savings bank . 23.4 16.6 11.3 may only offset the use of other funds. For example, Credit union 3.3 4.0 4.2 Finance or loan company 9.6 13.5 21.0 a family may have sufficient assets to purchase a Brokerage 2.9 3.3 1.9 Real estate lender 13.3 14.2 12.9 home without using a mortgage, but it may choose Individual lender 6.8 4.5 4.4 not to do so in order to invest those other funds in Other nonfinancial 1.3 1.5 .7 Government 2.0 1.9 1.7 another asset. Thus, trends in the data can only be Credit and store cards 2.3 3.0 3.7 Loans against pension accounts .. .1 .2 .2 suggestive of the underlying use of funds by families. Other unclassifiable loans 5.4 4.2 2.9 Total 100 100 100 The survey shows that the proportion of total borrowing directly attributable to home purchase has risen dramatically—from 53 percent in 1989 to 65 percent in 1995—a rise nearly equaled by the size of the decline in borrowing for investment real estate. dation (21 percent), investments (12 percent), educa- Borrowing for other investment also declined over tion (5 percent), and vehicle purchases (4 percent). the period. The share of credit attributable to vehicle borrowing shows a cyclical pattern. Other reasons for borrowing show little change over the period. Choice of Lenders In 1995 the SCF for the first time gathered information on the use of the funds families obtained from As one might expect in light of the continuing refinancing their mortgages. Approximately 10 per- restructuring of the financial services industry, large cent of all families with mortgages in 1995 had shifts occurred in consumers' borrowing patterns refinanced their current mortgage at some time. (table 13). With the ongoing contraction of the sav- Among this group, the major uses reported for the ings and loan industry, lending at savings and loans funds were home improvements or repairs (42 per- and savings banks as a share of total debt held cent of refinancers), payment of bills or bill consoli- by families declined between 1989 and 1995. Partly offsetting this decline was a surge in lending by finance companies that was particularly strong from 1992 to 1995. The market shares of banks and credit 15. For all but two of the types of loans covered by the 1995 SCF, unions grew steadily from 1989 to 1995.16 respondents were queried about the use of the funds borrowed. It was deemed infeasible to ask the purposes for funds borrowed with credit cards. For purposes of the analysis here, credit card debt is included in the category "goods and services." The second exception was first Debt Burden mortgages that were taken out when a property was obtained. In this case, it was assumed that the funds were used for the purchase of the home. In the earlier surveys, questions were also not asked about the The ability of families to service their loans is deteruse of funds obtained from any other type of first mortgage and from mined by the size of the payments they are required borrowing against a pension account. to make and the amount of income or assets they have available to make those payments. As noted above, the surveys measured before-tax family 12. Distribution of amount of debt of all families, income for the preceding calendar year. Between the by purpose of debt, 1989, 1992, and 1995 1992 and 1995 surveys, median and mean income Percent moved up, and the amount borrowed rose. By the end of the period, most interest rates on newly originated Purpose of debt 1989 1992 1995 Home purchase 53.0 59.9 65.2 Home improvement 2.0 2.3 1.9 Investment, excluding real estate 2.6 1.6 .9 Vehicles 8.6 6.2 7.1 Goods and services 4.8 5.0 5.2 16. For evidence on similar changes in borrowing patterns for Investment real estate 25.8 20.5 Education 1.9 2.5 15.3 small businesses, see Rebel A. Cole, John D. Wolken, and R. Louise Unclassifiable loans against " Woodburn, "Bank and Nonbank Competition for Small Business pension accounts .1 .2 Credit: Evidence from the 1987 and 1993 National Surveys of Small Other unclassifiable loans 1.1 2.0 1.8 Business Finances," Federal Reserve Bulletin, vol. 82 (Novem- Total 100 100 100 ber 1996), pp. 983-95. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 21 loans were lower than they were at the start. Thus, it Two indicators of potential financial distress are is not obvious how the ability of families to service the share of families with debt who have payments their loans out of their current income has changed exceeding 40 percent of their income and the share or, indeed, if it has. who were late with their payments by sixty days or On net, the survey indicates that the overall ratio of more at least once in the preceding year. The 1992-95 the total debt payments of all families to total family period saw little change in the proportion of highly income—a common measure of "debt burden"— indebted families (that is, those with payments changed only slightly between 1989 and 1995 exceeding 40 percent of their income), but the pro- (table 14).17 When this measure is computed sepa- portion of debtors who were late payers rose nearly rately for different income groups, families with 1 percentage point.18 incomes below $10,000 show an increase in debt burden between 1992 and 1995, and families with incomes of at least $100,000 show a large decrease. SUMMARY The ratio did not move appreciably for other families. This aggregate measure may not adequately de- Data from the 1995 SCF provide a detailed view scribe the typical debt burden of families with debt. of recent changes in the income and net worth of A better indication of typical debt burden is the families. Although median and mean family income median ratio of debt payments to income computed reported in 1995 had risen above the cyclically for debtors alone. For all families with debt, this depressed levels of the 1992 survey, neither measure measure moved up by 1 percentage point from 1992 had reached the level reported in 1989. Median net to 1995. For debtors with incomes below $50,000 the worth reported in 1995 also had returned to a level ratio rose, and for those with incomes of $100,000 nearly the same as that in 1989. However, mean net and more it fell. worth remained below its 1989 level. 18. The periodicity of the SCF obscures some important fluctuations in the frequency of payments problems. Industry data available 17. When calculated using macroeconomic data, this ratio declined on a monthly basis show a sharp drop in delinquency rates on from 16 percent at the time of the 1992 survey to a low of 15.3 percent consumer debt from 1992 through 1994. By the time of the 1995 in 1993. It had moved back up to 16.6 percent by the time of the 1995 survey, rates had increased to levels somewhat higher than those in survey. The ratio calculated from macroeconomic data uses an esti- 1992, and they have continued to rise since then. mate of aggregate debt service payments. In contrast, the ratio calcu- The measure of late payments in the SCF differs conceptually from lated from SCF data uses information on debt service payments the aggregate delinquency rate in some important respects. Whereas obtained directly from respondents. See Glenn B. Canner, Arthur B. the delinquency rate records late payments on each loan in a given Kennickell, and Charles A. Luckett, "Household Sector Borrowing period, the survey asks respondents whether they have been late or and the Burden of Debt," Federal Reserve Bulletin, vol. 81 behind in any of their payments during the past year. Thus a person (April 1995), pp. 323-38. In the case of credit cards, the payment is with three delinquent loans would be counted three times in the estimated using an average market rate on credit cards. aggregate data but only once in the SCF. 14. Aggregate and median ratios of debt payments to family income, and shares of debtors with ratios above 40 percent and those with any payment sixty days or more past due, by selected family characteristics, 1989, 1992, and 1995 Percent Any payment sixty days Aggregate Median Ratios above 40 percent FFaammiillyy or more past due cchhaarraacctteerriissttiicc 1989 1992 1995 1989 1992 1995 1989 1992 1995 1989 1992 1995 All families 15.6 15.8 15.4 16.0 15.7 16.7 10.9 11.6 11.1 7.0 6.0 6.9 Income (1995 dollars) Less than 10,000 16.2 17.1 21.1 19.3 13.2 15.1 25.6 28.9 26.9 21.4 11.1 8.0 10,000-24,999 12.7 16.5 16.1 17.2 14.7 17.8 13.9 16.0 16.9 11.8 9.2 11.4 25,000-49,999 16.7 17.0 17.2 16.0 16.0 16.9 10.6 9.7 8.5 4.2 6.2 7.8 50,000-99,999 17.4 16.0 16.7 16.1 16.9 16.8 5.7 4.7 4.3 4.0 2.1 2.4 100,000 and more 14.0 14.2 11.9 13.9 14.6 11.4 6.7 4.5 4.1 2.2 .5 1.4 Age of head (years) Less than 35 18.4 16.9 17.7 16.5 15.5 16.9 13.1 10.6 11.1 10.8 8.2 8.8 35-14 18.8 18.4 17.6 18.4 18.5 18.2 9.2 12.2 9.8 5.9 7.0 7.4 45-54 16.2 17.5 17.0 16.8 16.2 17.0 11.7 11.6 11.0 4.6 5.4 7.8 55-64 14.6 14.4 14.9 13.5 15.2 15.2 10.0 15.6 15.3 7.5 4.6 2.5 65-74 6.8 10.3 9.4 12.3 10.1 13.3 8.5 8.6 9.9 3.3 1.1 5.0 75 and more 2.6 4.6 3.8 8.8 3.1 3.8 11.2 9.6 9.5 1.1 2.1 4.2 NOTE. See note to table 1 and note 1, table 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1997 Among families' assets, the relative importance of list sample; the comparable figures for the 4,299 corporate equities and of retirement accounts rose interviews completed in 1995 are 2,780 families from steadily from 1989 to 1995. During this time, the the area-probability sample and 1,519 from the list home ownership rate rose about 1 percentage point, sample.19 while median home values increased slightly. The A very important factor in the ability to conduct median value of business assets declined sharply over surveys is the generosity of the public in giving their the six-year period. Unrealized capital gains also fell time for an interview. In the 1995 SCF, the average over the six-year period, mostly because of substan- interview required 90 minutes. However, for some tial declines in the unrealized gains in homes and particularly complicated cases, the amount of time businesses. needed was substantially more than two hours.20 Although the ratio of debts to assets changed only Data for the 1992 and 1995 surveys were collected slightly over this period, two shifts in borrowing are by the National Opinion Research Center at the particularly interesting. First, mortgage debt grew University of Chicago (NORC) between the months strongly as a share of family debt, likely reflecting of June and December in each of the two years. The the increase in the home ownership rate as well as great majority of interviews were conducted in perrefinancing related to declining mortgage interest son, although interviewers were allowed to conduct rates between 1992 and 1995. Second, both the pro- telephone interviews if that was a better arrangement portion of families using credit cards for borrowing for the respondent. In the 1995 survey, one important and the median balances outstanding on cards rose change was the introduction of laptop computers for markedly from 1989 to 1995. use in administering the questionnaire. This change increased the length of the interview somewhat, and it may also have had some effects on the quality of APPENDIX: SURVEY PROCEDURES AND information collected.21 Nonetheless, the effects of STATISTICAL MEASURES the change in the mode of questionnaire administration appear to be fairly small. Since 1989, the questionnaires for the SCF have Errors may be introduced into survey results at changed only slightly. Generally, changes have been many stages. Sampling error, the variability expected introduced to gather additional information needed to to occur in estimates based on a sample instead of a understand other data in the survey—for example, census, is a particularly important source of error. the 1995 SCF introduced a question on uses of funds Such error may be reduced either by increasing the for mortgages that were taken out after the time a size of the sample or by designing the sample to primary residence was purchased. Also, the major reduce important types of variability; the latter course aspects of the sample design have been fixed over has been chosen for the SCF. Estimation of sampling this time. Thus, the information obtained by the sur- error in the SCF is described further below. vey is comparable over 1989-95. Interviewers may introduce errors, though SCF The survey is intended to provide an adequate interviewers are given lengthy project-specific traindescriptive basis for the analysis of family assets and ing to minimize this problem. In addition, computer liabilities. To address this requirement, the SCF com- control of the 1995 survey greatly reduced technical bines two types of samples. First, a standard multi- errors made by interviewers. Respondents may introstage area-probability design is selected to provide duce error by understanding a question in a sense good coverage of characteristics, such as home own- different from that intended by the survey designers. ership, that are broadly distributed in the population. For the SCF, extensive pretesting and other review of Second, a special list sample is included to over- questions tend to reduce this source of error. sample wealthy families, who hold a dis- Nonresponse—either complete nonresponse to the proportionately large share of such assets as non- survey or nonresponse to selected items within the corporate businesses and tax-exempt bonds. This list sample is drawn from a sample of tax records made available for this purpose under strict rules 19. The 1992 SCF represents 95.9 million families; the 1995 SCF governing confidentiality, the rights of potential represents 99.0 million families. respondents to refuse participation in the survey, and 20. The role of interviewers in this effort is normally not sufficiently recognized. Without the dedication and perseverance of the the types of information from the interview that can project field staff, the survey would not have been possible. be made generally available. Of the 3,906 completed 21. For more information on the effects of computer-assisted interinterviews in the 1992 SCF, 2,456 families were from viewing in the 1995 SCF, see Arthur B. Kennickell, "Using Range Techniques with CAPI in the 1995 Survey of Consumer Finances" the area-probability sample and 1,450 were from the (Board of Governors of the Federal Reserve System, 1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances 23 survey—may be another important source of error. and a new weight was computed for all the cases in As noted in more detail below, the SCF uses weight- each of the selected replicates.24 ing adjustments to compensate for complete non- Comparable standard errors are not available for response. To deal with missing information on the 1989 survey. Weights for the 1989 SCF were individual items, the SCF uses statistical methods to computed using an earlier version of the methodolimpute missing data.22 ogy applied in 1992 and 1995. Although estimates Response rates differ markedly in the two parts using these 1989 weights are comparable to estimates of the SCF sample. In both 1992 and 1995, about from the later surveys, the difference in the weight 70 percent of families selected for the area- construction is a source of variability in comparisons. probability sample actually completed interviews. An ongoing project computes weights for the 1989 The overall response rate in the list sample was about SCF using exactly the same methodology as that 34 percent. Detailed analysis of the data suggests that applied in the later surveys. Corresponding bootstrap the tendency to refuse participation in an interview is replicates and their weights will also be computed. A highly correlated with wealth. The response rates for set of tables for the 1989 data reporting the major both samples are low by the standards of other major detailed estimates presented in this article for 1992 government surveys. However, unlike other surveys, and 1995 will be published in a later issue of the which almost certainly also have differential non- Federal Reserve Bulletin. response by wealthy families, the SCF sample frame Generally, the survey data correspond well to provides a basis for adjusting for nonresponse by external estimates, when such information is availsuch families. To provide a measure of the frequency able. Comparisons of SCF data with aggregate data with which families similar to the sample families from the Federal Reserve flow of funds accounts could be expected to be found in the population of suggest that when proper adjustments are made to all families, analysis weights are computed for each achieve conceptual comparability, these aggregate case to account for both the systematic properties of estimates and the SCF estimates for 1989 and 1992 the design and for nonresponse. A major part of are very close.25 In general, only medians from the research by SCF staff is devoted to adjustments for SCF can be compared with those of other surveys nonresponse through the analysis weights for the because of the special design of the SCF sample. survey.23 The definition of "family" used throughout this For this article, the weights were further adjusted article differs from that typically used in other govto decrease the possibility that the results could be ernment studies. In the SCF, a household unit is overly affected by a small number of observations. divided into a "primary economic unit" (PEU)—the Such influential observations were detected using a family—and everyone else in the household. The graphical technique to inspect the underlying data. PEU is intended to be the economically dominant Most of the cases found were holders of an unusual single individual or pair of individuals (who may be asset or liability or were members of demographic married or living as partners) and all other persons groups for which such holdings were rare. Trimming who are financially dependent on that person or those the weights of such cases is likely to make the key persons. In other government studies, for example, findings in the article more reliable. those of the Bureau of the Census, a single individual To estimate the standard errors due to sampling is not considered a family. As noted in the main text, that are reported in the main part of this article, a the Census definition of household is closer to the replication technique was used. Replication methods SCF definition of family. The term "head" used in draw samples from the set of actual respondents in a this article is an artifact of the organization of the way that incorporates the important dimensions of data and implies no judgment about the structure of the original sample design. In the SCF, a bootstrap families. In a PEU containing only a single economiprocedure was used to select 1,000 sample replicates, cally dominant individual, the head is taken to be that individual. In other PEUs, the head is taken to be the male in the core couple of the PEU or the older person in a same-sex couple. 22. See Arthur B. Kennickell, "Imputation of the 1989 Survey of Consumer Finances: Stochastic Relaxation and Multiple Imputation" (Board of Governors of the Federal Reserve System, 1991). 23. For a description of the weighting methodology, see Arthur B. 24. See Kennickell, McManus, and Woodburn, "Weighting Kennickell, Douglas A. McManus, and R. Louise Woodburn, Design," for details. "Weighting Design for the 1992 Survey of Consumer Finances" 25. For the details of this comparison, see Rochelle Antoniewicz, (Board of Governors of the Federal Reserve System, 1996). The "A Comparison of the Household Sector from the Flow of Funds weighting design for the 1995 survey is identical. A review of the Accounts and the Survey of Consumer Finances," Review of Income 1995 weights will be available later in the year. and Wealth (forthcoming). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1997 The data used in this article from the 1989 and advanced stage of data processing. Data from the 1992 SCFs are derived from the final versions of 1995 SCF, in a form designed to protect the privacy those surveys. Results reported in this article may of respondents, should be available in the first half of differ in some details from earlier results based on the 1997 from the National Technical Information Serpreliminary data from those surveys. The 1995 data vice, 5285 Port Royal Road, Springfield, VA 22161, used here represent the best estimates at the current (703) 487-4763. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

25 Industrial Production and Capacity Utilization for November 1996 Released for publication December 16 2.5 percent surge in utility output, in response to unusually cold weather, contributed 0.2 percentage point to overall IP growth. At 128.0 percent of its Industrial production increased 0.9 percent in 1987 average, total industrial production in Novem- November after a revised decline of 0.2 percent in ber was 4.4 percent higher than it was in Novem- October. A rebound in the production of motor vehi- ber 1995. The utilization of industrial capacity cles at strike-affected General Motors plants and in increased 0.4 percentage point, to 83.3 percent, the production of related parts and materials matching the most recent pre-strike level, attained in accounted for about half of the gain. In addition, a September. Industrial production indexes Twelve-month percent change Twelve-month percent change Materials Products J I 1990 1991 1992 1993 1994 1995 1996 1990 1991 1992 1993 1994 1995 1996 Capacity and industrial production Ratio scale, 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 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 L J I L 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1982 1984 1986 1988 1990 1992 1994 1996 1982 1984 1986 1988 1990 1992 1994 1996 All series are seasonally adjusted. Latest series, November. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1997 Industrial production and capacity utilization, November 1996 Industrial production, index, 1987 = 100 Percentage change Category 1996 1996' Nov. 1995 to Aug/ Sept.r Oct. Nov. P Aug. Sept. Oct.r Nov.? Nov. 1996 Total 126.9 127.1 126.9 128.0 .5 .1 -.2 .9 4.4 Previous estimate 126.8 127.2 126.6 .4 .3 -.5 Major market groups Products, total2 122.7 123.0 123.0 124.1 .1 .3 .0 1.0 4.5 Consumer goods 116.5 116.6 116.3 117.8 -.7 .1 -.3 1.3 1.6 Business equipment 171.1 171.8 173.0 175.2 .4 .4 .7 1.3 11.7 Construction supplies 114.4 115.6 114.3 114.7 2.2 1.0 -1.1 .4 5.6 Materials 133.5 133.5 132.9 133.9 1.0 .0 -.4 .8 4.3 Major industry groups Manufacturing 129.2 129.6 129.4 130.4 .2 .3 -.2 .8 4.7 Durable 142.2 142.4 141.7 143.3 .6 .1 -.5 1.2 6.7 Nondurable 114.8 115.5 115.8 116.1 -.3 .6 .3 .3 2.1 Mining 102.7 102.7 102.0 102.1 1.8 -.1 -.6 .1 3.8 Utilities 125.6 123.9 124.4 127.4 2.4 -1.3 .3 2.5 1.6 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1995 1996 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, NNNooovvv... 111999999555 11996677--9955 11998822 11998888--8899 tttooo Nov. Aug/ Sept/ Oct/ NOV.P NNNooovvv... 111999999666 Total 82.1 71.8 84.9 83.0 83.5 83.3 82.9 83.3 4.0 Previous estimate 83.4 83.4 82.7 Manufacturing 81.4 70.0 85.2 82.0 82.4 82.3 81.9 82.2 4.4 Advanced processing 80.7 71.4 83.5 80.3 80.6 80.5 80.0 80.6 5.2 Primary processing . 82.6 66.8 89.0 86.0 86.6 86.8 86.4 86.2 2.5 Mining 87.4 80.6 86.5 87.9 91.9 91.9 91.3 91.3 -.1 Utilities 86.9 76.2 92.6 92.5 91.6 90.4 90.6 92.7 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 cles was augmented by another substantial increase that the aggregate output of consumer goods jumped in the production of commercial aircraft and equip- 1.3 percent. Although the rebound in motor vehicles ment. The output of information processing equipaccounted for about two-fifths of this gain, the ment, which had grown more than 1.0 percent per remaining increase resulted from an increase of month during the previous three months, advanced at 1.0 percent in the production of nondurable consumer a more moderate rate of 0.7 percent in November. goods. Growth in the amount of gas and electricity The output of industrial equipment edged up 0.2 perused for residential heat contributed a substantial cent, and the index for this segment now stands at portion of this increase, and the output of other about the same level as it did a year earlier. However, nondurables rose 0.6 percent. Led by continuing the output of other equipment, which had been weak weakness in the appliance segment, the production of most of the year, increased 1.1 percent after a revised consumer durables other than automotive products gain of 1.9 percent in October; advances in farm and fell another 0.6 percentage point. This decrease office equipment led the increases in both months. marked the fifth consecutive monthly decline for this After having fallen 1.1 percent in October, this market group, and the index for other consumer index of construction supplies increased 0.4 percent; durables is now 2.6 percent below its year-ago level. the index of business supplies edged up 0.1 percent The overall output of business equipment, which after a revised gain of 0.5 percent in October. The had posted sizable monthly gains since May, rose aggregate output of industrial materials increased sharply, increasing 1.3 percent. Gains were particu- 0.8 percent. Within this aggregate, the production of larly strong in the output of transit equipment, in durable goods materials advanced 1.0 percent, largely which a bounceback in the production of motor vehi- because of rebounds in the production of parts and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 27 materials used primarily by the motor vehicle indus- power on January 7, 1997. The revisions of IP, capactry. The output of nondurable materials slipped ity, and capacity utilization will incorporate updated 0.1 percent; sizable increases in the output of paper source data for recent years and will feature a change materials and of containers were offset by com- in the method of aggregating the indexes. From 1977 parable decreases in the production of chemical onward, the value-added proportions used to weight materials. The production of energy materials jumped individual series will be updated annually rather than 1.0 percent, led by a sharp gain in electricity quinquennially. In addition, the IP indexes and the generation. capacity measures will be rebased so that 1992 actual When analyzed by industry group, the data show output equals 100. Capacity utilization, the ratio of IP that factory output increased 0.8 percent after a to capacity, will be recomputed on the basis of revised 0.2 percent loss in October; the production of revised IP and capacity measures. durable goods increased 1.2 percent, while that of The aggregate IP indexes will be constructed with nondurable goods rose 0.3 percent. The output of a superlative index formula similar to that introduced durable goods was buoyed not only by the resurgence by the Bureau of Economic Analysis as the featured of production in motor vehicles and parts but also by measure of real output in its January 1996 compreincreases of 0.5 percent or more in the production of hensive revision of the National Income and Product lumber, furniture and fixtures, fabricated metal Accounts. At present, the aggregate IP indexes are products, computer and office equipment, electrical computed as linked Laspeyres indexes, with the machinery, and aerospace and miscellaneous trans- weights updated every five years. Because of the portation. The only decrease in durable goods pro- rapid fall in the relative price of computers and duction was in primary metals, where the output of peripheral equipment, that periodic updating of iron and steel dropped 2.6 percent. weights is too infrequent to provide reliable estimates Among nondurables, the indexes for food, tobacco, of current changes in output, capacity, and capacity textile mill products, and paper all posted gains of utilization. With the publication of the revision, 0.5 percent or more; the production of leather and of value-added proportions will be updated annually, chemical products also advanced. On the negative and the new index number formula will be applied to side, the output of apparel products and of petroleum all aggregates of IP, capacity, and gross value of products dropped more than 1.5 percent; the produc- product. For the most part, relative price movements tion of rubber and plastics also declined. among the 260 individual components of the IP index are likely to have little visible effect on total IP. The factory operating rate increased 0.3 percentage However, the more frequent updating of the relative point, to 82.2 percent. The rate for advancedprice of the output of the computer industry could processing industries, which include motor vehicles lower overall IP growth in some years by as much as and parts, rose 0.6 percentage point, to 80.6 percent, V2 percentage point; in other years, the updating of after having fallen a similar amount in October; the weights will have virtually no effect. Because the rate for primary-processing industries declined new index number formula will slow capacity growth 0.2 percentage point, to 86.2 percent. After having as well as IP growth, the effect of the reaggregation fallen 5.5 percentage points in October, the operating on overall capacity utilization should be small. rate in motor vehicles and parts increased 4.4 percentage points, to 78.8 percent. The operating rate at The regular updating of source data for IP will mines remained unchanged, at 91.3 percent, while include the introduction of annual data from the 1994 the rate at utilities increased 2.1 percentage points, to Annual Survey of Manufactures and selected 1995 92.7 percent. Current Industrial Reports of the Bureau of the Cen- This release and the history for all published sus. Available annual data on mining for 1994 and series are available on the Internet at 1995 from the Department of the Interior will also be http://www.bog.frb.fed.us, the Board of Governors introduced. Revisions to the monthly indicators for World Wide Web site. each industry (physical product data, productionworker hours, or electric power usage) and revised 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 1996 ANNUAL REVISION ANNOUNCEMENT price index similar in concept to what is used for the computer industry. The Federal Reserve will publish revisions of its measures of industrial production (IP), capacity, The statistics on the industrial use of electric power capacity utilization, and industrial use of electric will be revised back to 1972. These revisions stem Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1997 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. industries will be benchmarked to indexes derived For information about the Bulletin Board, call from data published in the Census Bureau's annual 202-482-1986. In addition to the data currently prosurveys and censuses of manufactures. These indexes vided, the time series of implicit prices necessary for will also be revised so that 1992 electric power usage a user to aggregate IP and capacity under the new equals 100. methodology will be provided. For information on More detail on the plans for this revision is avail- these revisions, call the Industrial Output Section, able on the Internet at http://www.bog.frb.fed.us. 202-452-3151. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

29 Announcements APPOINTMENTS OF CHAIRMEN AND DEPUTY Robert L. Strickland, Chairman, Lowe's Companies, Inc., Winston-Salem, North Carolina, renamed Deputy CHAIRMEN OF THE FEDERAL RESERVE BANKS Chairman. The Federal Reserve Board announced on November 4,1996, the appointment of Chairmen and Deputy Atlanta Chairmen of the twelve Federal Reserve Banks for Hugh M. Brown, President and CEO, BAMSI, Inc., 1997. Titusville, Florida, renamed Chairman. David R. Jones, President and CEO, Atlanta Gas Light Each Reserve Bank has a Board of Directors of Company, Atlanta, Deputy Chairman. nine members. The Board of Governors in Washington appoints three of these directors and designates one of its appointees as Chairman and a second as Chicago Deputy Chairman. Lester H. McKeever, Jr., Managing Partner, Washington, Following are the names of the Chairmen and Pittman & McKeever, Chicago, Chairman. Arthur C. Martinez, Chairman and CEO, Sears, Roebuck Deputy Chairmen appointed by the Board for next and Co., Hoffman Estates, Illinois, Deputy Chairman. year. Boston St. Louis William C. Brainard, Chairman, Department of John F. McDonnell, Chairman, McDonnell Douglas Corp., Economics, Yale University, New Haven, St. Louis, renamed Chairman. Connecticut, Chairman. Susan S. Elliott, President and CEO, Systems Service Frederick J. Mancheski, Chairman and CEO, Echlin, Inc., Enterprises, Inc., St. Louis, renamed Deputy Branford, Connecticut, Deputy Chairman. Chairman. New York Minneapolis John C. Whitehead, Chairman, AEA Investors, Inc., Jean D. Kinsey, Professor, Consumption Economics, New York, renamed Chairman. University of Minnesota, St. Paul, renamed Chairman. Thomas W. Jones, Vice Chairman, President, and COO, David A. Koch, Chairman, Graco, Inc., Minneapolis, Teachers Insurance and Annuity Assn.— renamed Deputy Chairman. College Retirement Equities Fund, New York, renamed Deputy Chairman. Kansas City A. Drue Jennings, Chairman, President, and CEO, Philadelphia Kansas City Power & Light Co., Kansas City, Donald J. Kennedy, Business Manager, International Missouri, renamed Chairman. Brotherhood of Electrical Workers, Local Union Jo Marie Danick, Area Managing Partner, Ernst & Young No. 269, Trenton, New Jersey, renamed Chairman. LLP, Denver, renamed Deputy Chairman. Joan Carter, President and COO, UM Holdings Ltd., Haddonfield, New Jersey, renamed Deputy Chairman. Dallas Roger R. Hemminghaus, Chairman, President, and CEO, Cleveland Diamond Shamrock, Inc., San Antonio, Chairman. G. Watts Humphrey, Jr., President, GWH Holdings, Inc., Cece Smith, General Partner, Phillips-Smith Specialty Pittsburgh, Chairman. Retail Group, Dallas, Deputy Chairman. David H. Hoag, Chairman and CEO, The LTV Corporation, Cleveland, Deputy Chairman. San Francisco Richmond Judith M. Runstad, Partner, Foster Pepper and Shefelman, Claudine B. Malone, President, Financial & Management Seattle, renamed Chairman. Consulting, Inc., McLean, Virginia, Gary G. Michael, Chairman and CEO, Albertson's, Inc., renamed Chairman. Boise, Idaho, Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Federal Reserve Bulletin • January 1997 RELEASE OF REPORT ON PUBLIC DISCLOSURE Committee of the G-10 central banks in Septem- OF TRADING AND DERIVATIVES ACTIVITIES OF ber 1994 and also on concepts in the joint report BANKS AND SECURITIES FIRMS of the Basle Committee and the IOSCO Technical Committee, Framework for Supervisory Information The Federal Reserve Board announced on Novem- About the Derivatives Activities of Banks and Securiber 13, 1996, that a joint report on the public disclo- ties Firms, issued in May 1995. sure of trading and derivatives activities of banks and securities firms worldwide had been issued by the Basle Committee on Banking Supervision and the ISSUANCE OF AN INTERPRETATION OF MARGIN Technical Committee of the International Organisa- REGULATIONS tion of Securities Commissions (IOSCO).1 The joint report provides an overview of the disclo- The Federal Reserve Board on November 20, 1996, sures about trading and derivatives activities in the issued an interpretation of its margin regulations 1995 annual reports of a sample of the largest interna- (Regulations G, T, and U) in response to the enacttionally active banks and securities firms in the Group ment of the National Securities Markets Improveof Ten (G-10) countries and notes improvements ment Act of 1996 (the Markets Improvement Act) since 1993. The analysis builds, in part, upon a and requested comment on amendments to its margin framework used by the Federal Reserve in analyzing regulations to implement the statutory amendments the trading and derivatives disclosures of major U.S. to the Securities Exchange Act of 1934 (the Exchange banking organizations. Act). The Board's interpretation is effective immedi- In total, seventy-nine major banks and securities ately. Comment on the amendments is requested by firms in the G-10 countries comprised the sample December 31, 1996. reviewed for the 1993-95 period, representing more Under the Markets Improvement Act, the Board no than $13 trillion in total assets and more than $69 tril- longer has the authority to regulate certain loans to lion in notional amounts of derivative instruments. registered broker-dealers unless it finds that such Disclosures in the 1995 annual reports of two major rules are necessary or appropriate in the public intersecurities firms in Hong Kong were also reviewed. est or for the protection of investors. The analysis revealed that there have been general The interpretation makes clear that the Board has improvements as well as voluntary innovations in not made such a finding and that provisions in its the annual report disclosures of a number of large margin regulations for which the Board no longer has internationally active banks and securities firms. In general authority are without effect. particular, there were notable improvements in The interpretation also reflects the statutory repeal quantitive disclosures about market risk in 1995 and of section 8(a) of the Exchange Act, as provided by 1994. However, despite encouraging advances in dis- the Markets Improvement Act. closure practices by a number of institutions in the Comments are solicited on amendments to the G-10 countries, many institutions continued to dis- Board's margin regulations to implement the statuclose very little about their trading and derivatives tory amendments and further the policies behind their activities. adoption. In addition, the report includes recommendations made by the Basle Committee and IOSCO last year for further improvements in disclosures of qualitative REGULATION O: FINAL RULE AND PROPOSAL and quantitative information about institutions' involvement in trading and derivatives activities, The Federal Reserve Board announced on Novemincluding their risk exposures and risk-management ber 4, 1996, a final rule and requested comment on a policies, and the earnings impact of these activities. proposed rule concerning lending by member banks The report's recommendations draw on concepts to their insiders under Regulation O (Loans to Execudeveloped in the Discussion Paper on Public Disclo- tive Officers, Directors, and Principal Shareholders of sure of Market and Credit Risks by Financial Inter- Member Banks). The final rule is effective immedimediaries released by the Euro-currency Standing ately. Comments on the proposed rule were requested by December 9, 1996. The final rule allows insiders of a bank and of the bank's affiliates to obtain loans under a company- 1. The report is available on request to Publications Services, wide employee benefit plan. This amendment con- Board of Governors of the Federal Reserve System, Mail Stop 127, forms the regulation to the Economic Growth and Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 31 Regulatory Paperwork Reduction Act of 1996. The PUBLICATION OF THE ANNUAL STATISTICAL final rule also simplifies the procedures for a bank DIGEST, 1990-1995 board of directors to exclude executive officers and directors of affiliates from policymaking functions of The Annual Statistical Digest, 1990-1995 is now the bank, and thereby from the restrictions of Regula- available. This six-year Digest is designed as a comtion O. pact source of economic, and especially, financial The proposed rule would exclude executive offi- data. The Digest provides a single source of historical cers and directors of an affiliate from all restrictions continuations of the statistics carried regularly in the of Regulation O, provided that the executive officers Federal Reserve Bulletin. As of this issue, the Digest or directors were not engaged in policymaking func- has been changed from an annual publication to a tions of the bank and the affiliate did not account for quinquennial publication. The next issue is scheduled more than 10 percent of the consolidated assets of the to be published in 2001 and will cover the years 1996 bank's holding company. This proposal supersedes a through 2000. similar proposal included in a proposed rule pub- This issue of the Digest covers the years 1990 lished by the Board on May 3, 1996. The new pro- through 1995. It serves to maintain the historical posal is consistent with changes to the exemptive series first published in Banking and Monetary Statisauthority of the Board made by the Economic Growth tics, 1941-1970, and the Digest for 1970-79, for and Regulatory Paperwork Reduction Act of 1996. 1980-89, and yearly issues. A Concordance of Statistics will be included with all orders. The Concordance provides a guide to tables that cover the same material in the current six-year Digest, the two previ- DECREASE IN THE NET TRANSACTION ous single-year issues, and the Bulletin. ACCOUNTS TO WHICH A 3 PERCENT RESERVE Copies of the Digest at $25.00 each are available REQUIREMENT WILL APPLY IN 1997 from Publications Services, Mail Stop 127, Board of Governors of the Federal Reserve System, Washing- The Federal Reserve Board announced on Novem- ton, DC 20551. ber 21, 1996, a decrease from $52.0 million to $49.3 million in the net transaction accounts to which a 3 percent reserve requirement will apply in 1997. REVISIONS TO TABLES IN THE STATISTICAL The Board also changed from $4.3 million to APPENDIX OF THE BULLETIN $4.4 million the amount of reservable liabilities of each depository institution that is subject to a reserve Tables 1.26, 1.27, and 1.28 have been revised to requirement of zero percent. reflect changes in the Board's H.8 statistical release, Additionally, the Board increased the deposit cutoff 'Assets and Liabilities of Commercial Banks in the levels that are used in conjunction with the exemption United States." Table 1.27, "Assets and Liabilities of level to determine the frequency and detail of deposit Large Weekly Reporting Commercial Banks," and reporting required for each institution from $57.0 mil- table 1.28, "Large Weekly Reporting U.S. Branches lion to $59.3 million for nonexempt depository insti- and Agencies of Foreign Banks," are no longer being tutions and from $46.4 million to $48.2 million for published in the Bulletin. Instead, abbreviated balexempt depository institutions. ance sheets for both large and small domestically chartered banks have been included in table 1.26, parts C and D. Data are both merger-adjusted and break-adjusted. In addition, data from large weekly PROPOSED ACTION reporting U.S. branches and agencies of foreign banks have been replaced by balance sheet estimates of all The Federal Reserve Board on November 15, 1996, foreign-related institutions and are also included in requested public comments on proposed revisions to table 1.26, part E. These data are break-adjusted. the official staff commentary to Regulation Z (Truth The not-seasonally-adjusted data for all tables now -in Lending). Comments should be received by Janu- contain additional balance sheet items, which were ary 6, 1997. available as of October 2, 1996. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Minutes of the Federal Open Market Committee Meeting Held on September 24,1996 A meeting of the Federal Open Market Committee Ms. Low, Open Market Secretariat Assistant, was held in the offices of the Board of Governors of Division of Monetary Affairs, Board of Governors the Federal Reserve System in Washington, D.C., on Ms. Pianalto, First Vice President, Federal Reserve Tuesday, September 24, 1996, at 9:00 a.m. Bank of Cleveland Messrs. Beebe, Davis, Dewald, Eisenbeis, and Hunter, Present: Senior Vice Presidents, Federal Reserve Banks Mr. Greenspan, Chairman of San Francisco, Kansas City, St. Louis, Mr. McDonough, Vice Chairman Atlanta, and Chicago respectively Mr. Boehne Messrs. Bentley, Hetzel, Ms. Krieger, and Mr. Jordan Mr. Rosengren, Vice Presidents, Federal Mr. Kelley Reserve Banks of New York, Richmond, Mr. Lindsey New York, and Boston respectively Mr. McTeer Mr. Weber, Senior Research Officer, Federal Reserve Mr. Meyer Bank of Minneapolis Ms. Phillips Ms. Rivlin Mr. Stern By unanimous vote, the minutes of the meeting Ms. Yellen of the Federal Open Market Committee held on Messrs. Broaddus, Guynn, Moskow, and Parry, August 24, 1996, were approved. Alternate Members of the Federal The Manager of the System Open Market Account Open Market Committee reported on recent developments in foreign exchange Messrs. Hoenig, Melzer, and Ms. Minehan, markets. There were no open market transactions in Presidents of the Federal Reserve Banks of foreign currencies for System account during the Kansas City, St. Louis, and Boston respectively period since the meeting on August 20, 1996, and thus no vote was required of the Committee. Mr. Kohn, Secretary and Economist Mr. Bernard, Deputy Secretary The Manager also reported on recent developments Mr. Coyne, Assistant Secretary in domestic financial markets and on System open Mr. Gillum, Assistant Secretary market transactions in U.S. government securities Mr. Mattingly, General Counsel and federal agency obligations during the period Mr. Baxter, Deputy General Counsel August 20, 1996, through September 23, 1996. By Mr. Prell, Economist Mr. Truman, Economist unanimous vote, the Committee ratified these transactions. Messrs. Lang, Lindsey, Mishkin, Promisel, The Committee then turned to a discussion of the Rosenblum, Siegman, Simpson, Sniderman, economic and financial outlook and the implementaand Stockton, Associate Economists tion of monetary policy over the intermeeting period Mr. Fisher, Manager, System Open Market Account ahead. A summary of the economic and financial information available at the time of the meeting and Mr. Ettin, Deputy Director, Division of Research and Statistics, Board of Governors of the Committee's discussion is provided below, Messrs. Madigan and Slifman, Associate Directors, followed by the domestic policy directive that was Divisions of Monetary Affairs and Research and approved by the Committee and issued to the Federal Statistics respectively, Board of Governors Reserve Bank of New York. Mr. Smith,1 Assistant Director, Division of The information reviewed at this meeting sug- International Finance, Board of Governors gested that the expansion of economic activity had moderated appreciably from an elevated second- 1. Attended portion of meeting relating to proposal to amend the quarter pace. Growth in consumer spending had Authorization for Foreign Currency Operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

33 slowed noticeably, and higher mortgage rates seemed two months were about unchanged on average from to be exerting some modest restraint on housing their second-quarter level; however, permits for demand. While business demand for durable equip- single-family housing were unchanged in August and ment remained strong, spending on nonresidential had fallen from their second-quarter level. Sales of structures had weakened a little. Business inventory existing homes weakened in June and July. accumulation appeared to have picked up, although Demand for business equipment had remained the level of inventories remained modest in relation strong in recent months. Shipments of nondefense to sales. Employment and production had continued capital goods declined in July, retracing part of a to post sizable gains in recent months, but the substantial second-quarter advance, but recent data increases were somewhat below those recorded ear- on new orders pointed to further increases in business lier in the year. Consumer price inflation, excluding spending for durable equipment, notably office and its food and energy components, had edged lower computing equipment, in coming months. Nonresithis year despite somewhat larger increases in labor dential construction activity fell somewhat in July compensation. after having decreased a little in the second quarter. Private nonfarm payroll employment grew less rap- Business inventory investment picked up sharply idly over July and August than it had in the second in July; most of the increase occurred at retail estabquarter; aggregate hours worked by private produc- lishments. Manufacturing inventories rose somewhat, tion workers also expanded at a slower pace over the with the gain concentrated at manufacturers of protwo-month period. Job growth in the services indus- ducers' durable equipment. The stock-sales ratio for tries was somewhat lower over the two months com- the sector was around its historical low. In the wholepared with that of the second quarter. Manufacturing sale sector, inventories edged higher in July despite a employment changed little on balance over the July- substantial drop in stocks of farm products, and the August period, and construction hiring was down inventory-sales ratio for the sector fell to the low end considerably in August after a July increase that was of its range over recent years. Retail stocks expanded a little above the pace of the second quarter. The considerably at both automotive dealers and non-auto civilian unemployment rate declined to 5.1 percent in establishments in July. Inventory-sales ratios edged August. higher in most retail categories, but they remained at Industrial production also advanced somewhat less relatively low levels. rapidly on average in July and August after having The nominal deficit on U.S. trade in goods and recorded strong gains in the previous few months; services widened substantially in July from its June slower growth was evident in mining and utilities as level and also from its average rate for the second well as in manufacturing. Smaller increases in the quarter. Despite one-time service payments related to output of motor vehicles and parts accounted for part the Olympics and larger inflows of imported oil, of the slowdown in the expansion of the manufactur- imports edged down in July from the sharply ing sector in August; in addition, the output of con- increased rate recorded for the second quarter; the sumer goods other than motor vehicles remained latter largely reflected the strength of the U.S. econsluggish, and the production of construction supplies omy during the first half of the year. Exports fell declined significantly after having surged in the sec- considerably more in July than did imports; in addiond quarter. Elsewhere in manufacturing, business tion to decreased exports in such categories as conequipment, notably its office and computing compo- sumer goods, aircraft and parts, automotive products, nent, continued its robust expansion over July and and other industrial supplies, part of the measured August, and defense and space equipment extended decline may have reflected residual seasonality in the the upturn that had begun in the second quarter. The data. Available information suggested that, on balrate of utilization of total industrial capacity was ance, the economies of the major foreign industrial unchanged on balance from June to August and countries had strengthened in recent months. In remained at a relatively high level. Japan, a mild second-quarter pause after very rapid Total retail sales rose slightly over July and August first-quarter growth had been followed by renewed after having declined substantially in June. Decreased expansion. Economic activity in Germany had outlays at food stores, gas stations, and furniture and rebounded sharply in the second quarter from a firstappliance stores in August were a little more than quarter contraction, and further expansion appeared offset by a sharp pickup in sales at general merchan- to be in train. Although economic growth had been disers, apparel stores, and outlets for durable goods sluggish in Canada and the United Kingdom in the other than furniture and appliances. Housing starts second quarter, recent indicators suggested a pickup rebounded in August from a July drop and for the in activity in those countries as well. By contrast, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1997 France and Italy had experienced little, if any, growth their assessments of the strength of that country's since early in the year. economic expansion and of the prospects of any Consumer price inflation remained moderate on near-term increase in official interest rates. In Gerbalance over July and August; declines in energy many, a reduction by the Bundesbank in its repo rate prices offset higher food prices. Excluding food and in late August and subsequent statements by Bank energy, consumer prices recorded a somewhat smaller officials regarding possible additional declines in offiadvance over the twelve months ended in August cial rates appeared to foster market expectations that than over the previous twelve months. Producer monetary policy might be eased further. prices of finished goods other than food and energy Growth of M2 and M3 picked up in August from were unchanged on net over July and August, and sluggish rates in July but remained below the average this index rose at a significantly slower pace over the increases over the first half of the year. A continuing, twelve months ended in August than over the preced- rapid runoff in the liquid deposit components of these ing twelve months. Average hourly earnings of pro- aggregates was offset in part by solid gains in retail duction or nonsupervisory workers rebounded in money market funds and small time deposits, whose August, more than offsetting a small July decline. yields had not declined in step with decreases in Over the year ended in August, this measure of labor market interest rates in early August. For the year costs increased considerably more than it had over through August, both aggregates grew at rates in the the previous year. upper portions of their respective annual ranges. At its meeting on August 20, 1996, the Committee Expansion in total domestic nonfinancial debt had adopted a directive that called for maintaining the been moderate on balance over recent months and existing degree of pressure on reserve positions but had remained in the middle portion of its range. that included a bias toward the possible firming of The staff forecast prepared for this meeting, which reserve conditions during the intermeeting period. differed little from that for the previous meeting, The directive stated that in the context of the Com- suggested that the expansion would slow to a rate mittee's long-run objectives for price stability and around, or perhaps a little above, the economy's sustainable economic growth, and giving careful estimated growth potential. Expansion of consumer consideration to economic, financial, and monetary spending was forecast to rebound from the sluggish developments, somewhat greater reserve restraint third-quarter rate in light of strong income trends, the would be acceptable and slightly lesser reserve favorable effect of the rise in the stock market this restraint might be acceptable during the intermeeting year on household wealth, and the generally ample period. The reserve conditions associated with this availability of credit. Homebuilding was anticipated directive were expected to be consistent with moder- to slow somewhat in response to this year's increase ate growth of M2 and M3 over coming months. in residential mortgage rates but to remain at a rela- With incoming information generally confirming tively high level in the context of sustained income that economic growth was moderating and that price growth and the still-favorable cash flow affordability inflation remained subdued, open market operations of home ownership. The expansion of business were directed toward maintaining the existing degree investment in equipment and structures was projected of pressure on reserve positions throughout the to slow gradually in response to an easing of presintermeeting period. The federal funds rate gener- sures on capacity, a prospective slackening in the ally remained close to the level expected with an growth of corporate cash flows, and the rise in longunchanged policy stance, but most other market inter- term interest rates that had occurred this year. Only est rates exhibited considerable volatility and rose modest fiscal restraint was anticipated over the foresomewhat on balance over the intermeeting interval. cast period. Inflation, which had been boosted thus Despite the rise in many market interest rates, equity far in 1996 by adverse developments in food and prices rebounded over the period, and most major energy markets, was projected to remain somewhat market indexes reached record highs. above that of recent years, given high levels of resource utilization and a noticeable step-up in labor In foreign exchange markets, the trade-weighted compensation that would be reinforced by the legisvalue of the dollar in terms of the other G-10 currenlated rise in the federal minimum wage. cies appreciated slightly over the intermeeting period. The dollar's rise reflected in part the increase in U.S. In the Committee's discussion of current and prolong-term interest rates over the period. Declines in spective economic developments, members commarket rates abroad, both short- and long-term, also mented that the incoming information had been contributed to the dollar's strengthening. In Japan, mixed since the August meeting but that on the whole newly released data led market participants to lower it continued to suggest appreciable slowing in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 35 economic expansion from a rapid and unsustainable expansion of business investment over coming quarpace in the second quarter. Data for many compo- ters. In the housing sector, recent developments were nents of final demand, notably in the consumer sec- somewhat mixed, but they suggested on balance that tor, indicated that economic growth had moderated housing activity had held up better than expected in considerably in recent months. At the same time, the light of increased mortgage interest rates. It was supply-side data including employment and indus- suggested in this regard that the retarding effects of trial production had remained relatively robust, con- higher rates on fixed-rate mortgage contracts were tributing to uncertainty about underlying growth and being blunted to some extent by shifts toward adjustsuggesting that inventory accumulation had picked able rate mortgages. Even so, and consistent with the up during the summer. While the extent of the slow- softening already observed in a number of areas, ing in the overall expansion remained unclear, there residential construction was thought likely to drift were no indications of serious imbalances in the lower over time. economy, and the members generally viewed further The outlook for inventory investment, as is typigrowth at a pace near that of the economy's potential cally the case, was very difficult to assess. The modas a likely prospect. They continued to be concerned, eration in the expansion of final demand in recent however, about the outlook for inflation, given the months, together with still relatively robust growth in high level of production. In that regard, some com- employment and production, suggested that invenmented that labor markets appeared to have tightened tory investment had picked up since the second quarfurther in recent months and that wages were rising at ter. The strength in inventories in July tended to a somewhat faster pace. Even so, the rate of price confirm that assessment. However, assuming moderinflation had not picked up and the prospects were ate economic growth in line with current forecasts, good that inflation would remain contained for some there was no reason to anticipate substantial further time. Whether the factors that had contributed to such strengthening in inventory investment over coming a price performance would persist remained a key quarters. Indeed, the recent rebuilding of inventories uncertainty in the economic outlook, and the mem- after little or no growth earlier in the year made rapid bers generally agreed that the risks continued to be expansion less likely going forward. The members tilted to some extent in the direction of rising price acknowledged, nonetheless, that inventory developinflation over the forecast horizon. ments needed to be monitored with care, including In their discussion of the outlook for spending in such indirect signs as rising pressures on the prices of key sectors of the economy, members commented intermediate goods and tightening delivery schedules that consumer expenditures were likely to pick up that might provide incentives for a rapid buildup. after their summer lull, though probably to a pace With capacity utilization already at high levels, relaappreciably below that in the first half of this year. tively rapid growth in inventory investment, if it were Favorable factors in the outlook for consumer spend- superimposed on stronger-than-projected expansion ing included strong gains in employment and income, in final demand, could portend serious pressures the wealth effect stemming from the rise that had on resources and inflationary consequences for the occurred in the value of financial assets, and gener- economy. ally buoyant consumer sentiment. The improvement In their comments about the outlook for inflation, in the consumer sector would tend to be restrained, members observed that the recent behavior of price however, by the increase in consumer debt burdens inflation was a welcome though highly unusual develand the probable satisfaction of much of the pent-up opment, given current pressures on resources. The demands for consumer durables during the current statistical and anecdotal information provided eviexpansion. Business fixed investment likewise was dence of increasingly tight labor markets that under expected to provide considerable further stimulus to similar conditions historically had been associated the economy. Expenditures for business equipment, with considerable upward pressure on nominal labor notably for office and computing equipment, were compensation and, in turn, on prices. While wages, expected to expand substantially further, and recent and probably total labor compensation, were rising weakness in nonresidential construction might well more rapidly this year, the acceleration in the latter prove to be temporary, judging in part from anecdotal still appeared to be held down by worker insecurity reports of considerable strength in commercial real and relatively subdued increases in the cost of beneestate markets in many areas. On the whole, however, fits. Moreover, for a variety of reasons rising labor the completion of numerous capital spending pro- costs were not currently being passed through to grams in conjunction with slower projected growth prices, which by several key measures adjusted for in overall demand could be expected to temper the their volatile food and energy components exhibited Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1997 a steady or even a declining trend. Explanations price changes. In sum, assuming economic growth tended to concentrate on the intense competition in generally in line with their forecasts, the critical many markets, which prevented firms from raising question for some was when and how much inflation prices to absorb cost increases. would rise; many others were not persuaded of the Competitive pressures also were compelling firms inevitability of such an outcome. to curb cost increases through improvements in their In the Committee's discussion of policy for the productivity performance. Widespread reports sug- intermeeting period ahead, nearly all the members gested major gains in productivity in numerous indus- indicated that they could support an unchanged poltries, induced in recent years by business restruc- icy stance and the retention of a bias toward restraint turing and related activities and by large capital in the directive. The members generally agreed that investments that had introduced increasingly produc- while the risks were greater that price inflation would tive equipment. Although currently available mea- rise than that it would fall, higher inflation was not sures of productivity for the economy as a whole a foregone conclusion and most believed that the showed only weak gains, sectoral disaggregation of uncertainties in the outlook made it prudent to hold the data gave reasons to question the productivity monetary policy on a steady course and await further measurements. Productivity had increased fairly developments. The expansion appeared to be slowing sharply in manufacturing, and the slowdown in over- substantially and broad measures of prices, adjusted all productivity since 1973 had been concentrated in for fluctuations in their food and energy components, the service areas of the economy. Indeed, measured still indicated a steady or even slightly declining productivity in noncorporate businesses—largely inflation trend. In these circumstances, the Commitservices—had displayed a negative trend for many tee could wait for more information on the momenyears. This result was implausible and suggested tum of the expansion and the degree of pressure on considerable error in estimating output and prices for resources and its implications for inflation. A delay in many services. Consequently, it was likely that actual adjusting monetary policy was facilitated by its curproductivity growth was higher than the current mea- rent positioning, which did not appear to be far from sures indicated. By the same token, the rate of price a desirable longer-term stance because any pickup in inflation was lower than had been reported, consis- inflation was likely to be relatively small and gradual, tent with the findings of a number of studies of and was further supported by the possibility of an distortions in published price data. excessive reaction in financial markets to a change in The implications for the inflation outlook were not the direction of policy. A few members indicated that clear-cut. The key question was how long the favor- they could vote for some slight tightening in policy, able price behavior would persist. Advances in pro- although they did not feel any urgency about such a ductivity had boosted profit margins, and high mar- move. They observed that the decision was a close gins were helpful in that they could absorb some one for them, and in light of the uncertainties that portion of any cost increases for a time. However, were involved, they were willing to join the majority many business contacts indicated that they would and wait for further evidence bearing on the outlook resist squeezes in profit margins, and continued accel- for inflation. With regard to possible intermeeting eration in costs would eventually feed through to adjustments to policy, the members agreed that greater price inflation whatever the rate of productiv- retaining an asymmetric directive that was biased ity growth. The behavior of costs and the ability of toward restraint would be consistent with their assessbusinesses to pass along any greater increases over ments of the inflation risks in the economy. Accordtime would depend on the extent to which the expan- ingly, information suggesting that the odds on higher sion would slow and how much associated pressure inflation had risen should be met with a prompt there would be in labor and product markets. In this policy firming. connection, some members observed that even if the A differing view focused on the desirability of a expansion were to slow to a sustained pace around prompt move toward restraint to curb what were seen the rate of increase of the economy's potential, price as growing inflationary pressures in the economy. inflation could well trend at least modestly higher at Tight labor markets were likely to exert continuing current levels of resource utilization. Others did not upward pressure on labor costs, barring unexpected disagree that the odds might be tilted marginally in weakness in the economy, and at some point those that direction, but they continued to believe that a costs would begin to be passed through to prices. In great deal of uncertainty surrounded the outlook for the circumstances, it was important for policy to be resource use and, in turn, the relationship between a forward-looking and to move promptly to head off given degree of pressure on resources and overall intensifying inflationary pressures. Potentially, wait- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 37 ing could require more disruptive policy tightening promote sustainable growth in output. In furtherance of actions later and could risk the credibility of the these objectives, the Committee at its meeting in July reaffirmed the ranges it had established in January for System's anti-inflation policy. growth of M2 and M3 of 1 to 5 percent and 2 to 6 percent At the conclusion of the Committee's discussion, respectively, measured from the fourth quarter of 1995 to all but one of the members indicated that they could the fourth quarter of 1996. The monitoring range for accept a directive that called for maintaining the growth of total domestic nonfinancial debt was maintained existing degree of pressure on reserve positions and at 3 to 7 percent for the year. For 1997 the Committee agreed on a tentative basis to set the same ranges as in that included a bias toward the possible firming of 1996 for growth of the monetary aggregages and debt, reserve conditions during the intermeeting period. measured from the fourth quarter of 1996 to the fourth Accordingly, in the context of the Committee's long- quarter of 1997. The behavior of the monetary aggregates run objectives for price stability and sustainable eco- will continue to be evaluated in the light of progress nomic growth, and giving careful consideration to toward price level stability, movements in their velocities, and developments in the economy and financial markets. economic, financial, and monetary developments, the In the implementation of policy for the immediate future, Committee decided that somewhat greater reserve the Committee seeks to maintain the existing degree of restraint would be acceptable and slightly lesser re- pressure on reserve positions. In the context of the Comserve restraint might be acceptable during the inter- mittee's long-run objectives for price stability and sustainmeeting period. The reserve conditions contemplated able economic growth, and giving careful consideration to economic, financial, and monetary developments, someat this meeting were expected to be consistent with what greater reserve restraint would or slightly lesser moderate growth of M2 and M3 over coming months. reserve restraint might be acceptable in the intermeeting The Federal Reserve Bank of New York was autho- period. The contemplated reserve conditions are expected rized and directed, until instructed otherwise by the to be consistent with moderate growth in M2 and M3 over Committee, to execute transactions in the System coming months. Account in accordance with the following domestic Votes for this action: Messrs. Greenspan, McDonough, policy directive: Boehne, Jordan, Kelley, Lindsey, McTeer, Meyer, Mses. Phillips, Rivlin, and Yellen. Vote against this action: Mr. Stern. The information reviewed at this meeting suggests that growth in economic activity has moderated appreciably Mr. Stern dissented because he believed that a from an elevated second-quarter pace. Private nonfarm modestly more restrictive policy was appropriate. In payroll employment grew less rapidly over July and August than in the second quarter, while the civilian unemploy- his view, historical precedents suggested that proment rate declined to 5.1 percent in August. Industrial longed periods of taut labor markets were eventually production increased somewhat less rapidly on average in associated with rising inflation. Given prevailing July and August than in the prior few months. Total retail pressures on resources, especially labor, Mr. Stern sales rose slightly over July and August after having was concerned about the distinct risk of an acceleradeclined substantially in June. Housing starts in July and August were unchanged on average from their second- tion of inflation. Should this acceleration occur, he quarter level. Demand for business equipment has believed it would prove disruptive to the favorable remained strong, while spending on nonresidential struc- performance of the economy, and he preferred to tures has changed little on balance in recent months. The begin to address this risk promptly. nominal deficit on U.S. trade in goods and services widened substantially in July from its average in the second quarter. Increases in labor compensation have been somewhat larger this year, but consumer price inflation, exclud- AMENDMENT TO AUTHORIZATION ing its food and energy components, has edged lower. FOR FOREIGN CURRENCY OPERATIONS Most market interest rates have risen somewhat on balance since the Committee meeting on August 20, 1996. In foreign exchange markets, the trade-weighted value of the At this meeting the Committee considered a proposal dollar in terms of the other G-10 currencies has appreciated to replace the existing twelve-month maturity limit slightly over the intermeeting period. on the investment of foreign currency balances with Growth of M2 and M3 picked up in August, but they an eighteen-month average duration limit. The procontinued to expand at rates below those in the first half of the year. For the year through August, both aggregates are posal was designed to allow the Manager a wider estimated to have grown at rates in the upper portions of choice of maturities and hence somewhat greater their respective ranges for the year. Expansion in total operational flexibility in the implementation of the domestic nonfinancial debt has been moderate on balance System's primary portfolio objectives of liquidity over recent months and has remained in the middle portion with respect to investments in foreign government of its range. securities and limits on overall interest rate and credit The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and risks. At the conclusion of their review, the Commit- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1997 tee members voted unanimously to amend section 5 portfolio of Treasury obligations. In its last such of the Authorization for Foreign Currency Operations review, at its meeting on March 31, 1992, the Comto read as follows: mittee decided that the enhanced liquidity of the SOMA portfolio that had been achieved should be 5. Foreign currency holdings shall be invested to ensure maintained but that net additions to System holdings that adequate liquidity is maintained to meet anticipated should continue to be spread across all maturity areas. needs and so that each currency portfolio shall generally In the course of their discussion at this meeting, the have an average duration of no more than 18 months (calculated as Macaulay duration). When appropriate in members agreed that the primary objective in the connection with arrangements to provide investment facili- management of the SOMA portfolio was to ensure a ties for foreign currency holdings. U.S. Government securi- high degree of liquidity so that prompt and effective ties may be purchased from foreign central banks under adjustments could be made without unduly affecting agreements for repurchase of such securities within 30 calthe market for Treasury securities. endar days. It was agreed that the next meeting of the Committee would be held on Wednesday, November 13, LIQUIDITY MANAGEMENT AND THE MATURITY 1996. STRUCTURE OF THE SOMA PORTFOLIO The meeting adjourned at 1:40 p.m. The Committee also reviewed, on a preliminary basis, its current practices with regard to the maturity struc- Donald L. Kohn ture of the System Open Market Account (SOMA) Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

39 Legal Developments FINAL RULE—AMENDMENT TO REGULATION D Part 204—Reserve Requirements of Depository Institutions (Regulation D) The Board of Governors is amending 12 C.F.R. Part 204, 1. The authority citation for Part 204 continues to read as its Regulation D (Reserve Requirements of Depository follows: Institutions), to decrease the amount of transaction accounts subject to a reserve requirement ratio of three Authority. 12U.S.C. 248(a), 248(c), 371a, 461, 601, 611, percent, as required by section 19(b)(2)(C) of the Federal and 3105. Reserve Act, from $52.0 million to $49.3 million of net transaction accounts. This adjustment is known as the low 2. In section 204.9 paragraph (a) is revised to read as reserve tranche adjustment. The Board is increasing from follows: $4.3 million to $4.4 million the amount of reservable liabilities of each depository institution that is subject to a Section 204.9 Reserve requirement ratios. reserve requirement of zero percent. This action is required by section 19(b)(ll)(B) of the Federal Reserve Act, and (a)(1) Reserve percentages. The following reserve ratios the adjustment is known as the reservable liabilities exemp- are prescribed for all depository institutions, Edge and tion adjustment. The Board is also increasing the deposit Agreement corporations, and United States branches and cutoff levels that are used in conjunction with the reserv- agencies of foreign banks: able liabilities exemption to determine the frequency of deposit reporting from $57.0 million to $59.3 million for nonexempt depository institutions and from $46.4 million Category Reserve requirement1 to $48.2 million for exempt institutions. (Nonexempt insti- Net transaction accounts: tutions are those with total reservable liabilities exceeding $0 to $49.3 million 3 percent of amount. the amount exempted from reserve requirements ($4.4 million) while exempt institutions are those with total over $49.3 million $1,479,000 plus 10 percent of reservable liabilities not exceeding the amount exempted amount over $49.3 million. from reserve requirements.) Thus nonexempt institutions Nonpersonal time deposits 0 percent. with total deposits of $59.3 million or more will be required to report weekly while nonexempt institutions with Eurocurrency liabilities 0 percent. total deposits less than $59.3 million may report quarterly, 1 Before deducting the adjustment to be made by the paragraph (a) (2) of this in both cases on form FR 2900. Similarly, exempt institusection. tions with total deposits of $48.2 million or more will be required to report quarterly on form FR 2910q while (2) Exemption from reserve requirements. Each deposiexempt institutions with total deposits less than $48.2 tory institution, Edge or agreement corporation, and U.S. million may report annually on form FR 2910a. branch or agency of a foreign bank is subject to a zero Effective December 17, 1996, 12 C.F.R. Part 204 is percent reserve requirement on an amount of its transacamended as follows. For depository institutions that report tion accounts subject to the low reserve tranche in paraweekly, the low reserve tranche adjustment and the reserv- graph (a)(1) of this section not in excess of $4.4 million able liabilities exemption adjustment will apply to the determined in accordance with section 204.3(a)(3). reserve computation period that begins Tuesday, December 31, 1996, and the corresponding reserve maintenance period that begins Thursday, January 2, 1997. For institu- FINAL RULE—AMENDMENT TO REGULATION O tions that report quarterly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment The Board of Governors is amending 12 C.F.R. Part 215, will apply to the reserve computation period that begins its Regulation O (Loans to Executive Officers, Directors, Tuesday, December 17, 1996, and the corresponding re- and Principal Shareholders of Member Banks; Loans to serve maintenance period that begins Thursday, January Holding Companies and Affiliates), which limits how much 16, 1997. For all depository institutions, the deposit cutoff and on what terms a bank may lend to its own insiders and levels will be used to screen institutions in the second insiders of its affiliates, in order to permit insiders of a bank quarter of 1997 to determine the reporting frequency for and of the bank's affiliates to obtain loans under companythe twelve month period that begins in September 1997. wide employee benefit plans. This amendment conforms Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1997 the regulation to the Economic Growth and Regulatory (2) Exception. Nothing in this paragraph (a) shall pro- Paperwork Reduction Act of 1996, which was recently hibit any extension of credit made pursuant to a benefit passed by Congress. Currently, participation in such plans or compensation program— is prohibited when loans under such plans are on terms not (i) That is widely available to employees of the memavailable to the general public. ber bank and, in the case of extensions of credit to an The Board also is amending Regulation O to simplify insider of its affiliates, is widely available to employthe procedure for a bank's board of directors to exclude ees of the affiliates at which that person is an insider; executive officers and directors of an affiliate from policy- and making functions of the bank, and thereby from the restric- (ii) That does not give preference to any insider of the tions of Regulation O. member bank over other employees of the member Effective November 8, 1996, 12C.F.R. Part 215 is bank and, in the case of extensions of credit to an amended as follows: insider of its affiliates, does not give preference to any insider of its affiliates over other employees of the affiliates at which that person is an insider. Part 215—Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks (Regulation O) FINAL RULE—AMENDMENT TO REGULATION R 1. The authority citation for Part 215 continues to read as follows: The Board of Governors is amending 12 C.F.R. Parts 218 and 250, its Regulation R (Relations with Dealers in Secu- Authority: 12U.S.C. 248(i), 375a(10), 375b(9) and (10), rities Under Section 32, Banking Act of 1933). The Board 1817(k)(3) and 1972(2)(G)(ii); Pub. L. 102-242, 105 Stat. is rescinding Regulation R, which the Board believes is no 2236. longer necessary. The Board also is amending its regulations to remove an interpretation of section 32 of the 2. Section 215.2 is amended by revising paragraph (e)(2)(i) Glass-Steagall Act, which the Board believes is no longer to read as follows: necessary. This interpretation explains the position of the Board regarding the application of the prohibitions of section 32 to bank holding companies. Section 215.2—Definitions. Effective December 6, 1996, 12 C.F.R. Parts 218 and 250 are amended as follows: ^^ % rf: (2) * * * Part 218 (i) The board of directors of the member bank adopts a resolution identifying (by name or by title) all Section 218.101 through 218.113 [Redesignated as persons authorized to participate in major policymak- sections 250.400 through 250.4121 ing functions of the member bank, and the executive officer of the affiliate is not included in the resolution 1. Sections 218.101 through 218.113 are redesignated, as and does not actually participate in such major policy- set forth in the following table: making functions; and Old section New Section 218.101 250.400 218.102 250.401 3. Section 215.4 is amended as follows: 218.103 250.402 218.104 250.403 a. Paragraph (a) introductory text, (a)(1) and (a)(2) are 218.105 250.404 redesignated as paragraphs (a)(1) introductory text, 218.106 250.405 (a)(l)(i) and (a)(l)(ii), respectively. 218.107 250.406 b. A heading is added to newly designed paragraph (a)(1); 218.108 250.407 and 218.109 250.408 c. A new paragraph (a)(2) is added. 218.110 250.409 218.111 250.410 The additions read as follows: 218.112 250.411 218.113 250.412 Section 215.4—General prohibitions. Section 218.114 [Removed] (a) Terms and creditworthiness. (I) In general. * * * 2. Section 218.114 is removed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 41 Part 218 [Removed] Part 219—Reimbursement for Providing Financial Records; Recordkeeping Requirements for Certain 3. Part 218 is removed. Financial Records (Regulation S) Part 250—Miscellaneous Interpretations Subpart B—Recordkeeping and Reporting Requirements for Funds Transfers and Transmittals of Funds 1. The authority citation for Part 250 is revised to read as follows: 1. The authority citation for Subpart B is revised to read as follows: Authority. 12 U.S.C. 78, 248(i) and 371c(e). Authority. 12 U.S.C. 1829b(b)(2) and (3). 2. A new center heading is added immediately preceding the newly designated section 250.400 to read as follows: 2. In section 219.21, the first word "Such" in the last Interpretations of Section 32 of the Glass-Steagall Act sentence is revised to read "These" and a new sentence is added immediately preceding the last sentence to read as 3. Section 250.413 is added to read as follows: follows: Section 250.413—"Bank-eligible" securities Section 219.21—Authority, purpose, and scope. activities. * * * This subpart does not apply to a particular person or Section 32 of the Glass-Steagall Act (12 U.S.C. 78) prohib- class of persons or a particular transaction or class of its any officer, director, or employee of any corporation or transactions to the extent that the Treasury has determined unincotporated association, any partner or employee of any that 31 C.F.R. 103.33(e) or (f) do not apply to that person, partnership, and any individual, primarily engaged in the transaction, or class of persons or transactions. * * * issue, flotation, underwriting, public sale, or distribution, at wholesale or retail, or through syndicate participation, of stocks, bonds, or other similar securities, from serving at the same time as an officer, director, or employee of any ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT member bank of the Federal Reserve System. The Board is of the opinion that to the extent that a company, other Orders Issued Under Section 3 of the Bank Holding entity or person is engaged in securities activities that are Company Act expressly authorized for a state member bank under section 16 of the Glass-Steagall Act (12 U.S.C. 24(7), 335), the company, other entity or individual is not engaged in the First Commercial Corporation types of activities described in section 32. In addition, a Little Rock, Arkansas securities broker who is engaged solely in executing orders for the purchase and sale of securities on behalf of others in Arvest Bank Group, Inc. the open market is not engaged in the business referred to Bentonville, Arkansas in section 32. TRH Bank Group, Inc. Norman, Oklahoma FINAL RULE—AMENDMENT TO REGULATION S TRH Oklahoma, Inc. Norman, Oklahoma The Board of Governors is amending 12 C.F.R. Part 219, Subpart B of its Regulation S (Reimbursement for Provid- Order Approving the Establishment of a Bank Holding ing Financial Records; Recordkeeping Requirements for Company and the Acquisition of a Bank Certain Financial Records). Subpart B cross-references the substantive provisions of a joint rule adopted by the Board and the Department of the Treasury relating to the record- First Commercial Corporation, Little Rock, Arkansas keeping requirements for funds transfers and transmittals ("First Commercial"), and Arvest Bank Group, Inc., Benof funds under the Bank Secrecy Act. The amendment tonville, Arkansas ("Arvest"), have applied under secclarifies that Regulation S does not apply to any person or tion 3 of the Bank Holding Company Act ("BHC Act") transaction or class of persons or transactions that the (12 U.S.C. § 1842) to acquire all the shares of The Okla- Treasury has exempted from the joint rule. homa National Bank of Duncan, Duncan, Oklahoma Effective December 20, 1996, 12 C.F.R. Part 219 is ("Bank"), indirectly through TRH Bank Group, Inc. amended as follows: ("Bank Group"), and TRH Oklahoma, Inc. ("TRH"), both Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1997 of Norman, Oklahoma.1 First Commercial, Arvest and facts of record, the Board is permitted to approve this Bank Group are bank holding companies within the mean- proposal under section 3(d) of the BHC Act. ing of the BHC Act. TRH has applied under section 3 of Applicants and Bank do not compete in any banking the BHC Act (12 U.S.C. § 1842) to become a bank holding market. Based on all the facts of record, the Board concompany by acquiring all the shares of Bank. (First Com- cludes that consummation of this proposal would not result mercial, Arvest, Bank Group, and TRH, collectively, are in any significantly adverse effect on competition or on the referred to as "Applicants" in this order.) concentration of banking resources in any relevant banking Notice of the proposal, affording interested persons an market. The Board also has determined that financial and opportunity to submit comments, has been published managerial resources and future prospects of Applicants, (61 Federal Register 42,251 (1996)). The time for filing their respective subsidiaries, and Bank, and considerations comments has expired, and the Board has considered the relating to the convenience and needs of the communities applications and all comments received in light of the to be served, are consistent with approval of the applicafactors set forth in section 3 of the BHC Act. tions, as are the other supervisory factors the Board must Bank Group is the 22d largest commercial banking orga- consider under section 3 of the BHC Act. nization in Oklahoma, controlling deposits of approxi- Based on the foregoing and all the facts of record, the mately $186 million, representing less than 1 percent of Board has determined that the applications should be, and total deposits in commercial banking organizations in the hereby are, approved. The Board's approval of the prostate.2 Bank is the 120th largest commercial banking orga- posal is conditioned on compliance by Applicants with the nization in Oklahoma, controlling deposits of approxi- commitments made in connection with the applications and mately $51.9 million.3 On consummation of this proposal, all federal and state laws applicable to this proposal. The Bank Group would become the 17th largest commercial commitments and conditions relied on by the Board in banking organization in Oklahoma, controlling approxi- reaching this decision shall be deemed to be conditions mately $237.9 million in deposits, representing less than imposed in writing by the Board in connection with its 1 percent of total deposits in commercial banking organiza- findings and decision, and, as such, may be enforced in tions in the state.4 proceedings under applicable law. Section 3(d) of the BHC Act, as amended by section 101 The acquisition shall not be consummated before the of the Riegle-Neal Interstate Banking and Branching Effi- fifteenth calendar day following the effective date of this ciency Act of 1994, allows the Board to approve an appli- order, or later than three months after the effective date of cation by a bank holding company to acquire control of a this order, unless such period is extended for good cause by bank located in a state other than the home state of such the Board or the Federal Reserve Bank of St. Louis, acting bank holding company, if certain conditions are met.5 pursuant to delegated authority. These conditions are met in this case.6 In view of all the By order of the Board of Governors, effective November 6, 1996. 1. First Commercial and Arvest each own 50 percent of the shares Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and of Bank Group, and TRH is a wholly owned subsidiary of Bank Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. Group. Bank Group also has applied under section 3 of the BHC Act to acquire indirectly through TRH all the shares of Bank. JENNIFER J. JOHNSON 2. Banking and state deposit data are as of June 30, 1995. Deputy Secretary of the Board 3. TRH is a shell company that is not engaged in any activities. 4. On consummation, First Commercial and Arvest, the 22d and 6th largest commercial banking organizations in Oklahoma, respectively, Orders Issued Under Section 4 of the Bank Holding would become the 17th and 5th largest commercial banking organiza- Company Act tions in Oklahoma, controlling approximately $237.9 million and $929.9 million in deposits in the state. Bank of Boston Corporation In connection with this proposal, the Board has received comments from First Baird Bancshares, Inc., Dallas, Texas ("Protestant"), main- Boston, Massachusetts taining that the National Bank Act provisions governing mergers and consolidations apply or should apply, as a policy matter, to this Order Approving a Notice to Engage in Certain transaction. As structured, the transaction does not appear to be Nonbanking Activities covered by the National Bank Act, which by its terms applies only to mergers and consolidations of national banks, because it involves the purchase by a holding company of shares of a bank. In light of all the The Bank of Boston Corporation, Boston, Massachusetts facts of record, it appears that this transaction is subject to Oklahoma ("Bank of Boston"), a bank holding company within the law rather than the National Bank Act, and that Applicants have complied with applicable Oklahoma laws. 5. Pub. L. No. 103-328, 108 Stat. 2338 (1994). A bank holding company's home state is that state in which the operations of the bank Bank has been in existence and continuously operated for more than holding company's banking subsidiaries were principally conducted five years, the minimum period of time required under Oklahoma law. on July 1, 1996, or the date on which the company became a bank On consummation, neither First Commercial and its affiliates nor holding company, whichever is later. For purposes of the BHC Act, Arvest and its affiliates would control more than 10 percent of the total the home state of First Commercial and Arvest is Arkansas. amount of deposits of insured depository institutions in the United 6. 12 U.S.C. § 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and (B). States or more than the applicable state limits on deposits in Okla- First Commercial and Arvest are adequately capitalized and managed. homa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 meaning of the Bank Holding Company Act ("BHC Act"), bank in Maine that provides cash management services; has requested the Board's approval under section 4(c)(8) of and engages, through other subsidiaries, in various permisthe BHC Act (12U.S.C. § 1843(c)(8)) and section 225.23 sible nonbanking activities. Prior to commencing the proof the Board's Regulation Y (12 C.F.R. 225.23) to engage posed activities, Company will be registered as a brokerde novo in the following nonbanking activities on a world- dealer with the Securities and Exchange Commission wide basis through its wholly owned subsidiary, BancBos- ("SEC") under the Securities Exchange Act of 1934 ton Securities, Inc., Boston, Massachusetts ("Company"): (15 U.S.C. § 78a et seq.) and will be a member of the (1) Underwriting and dealing in, to a limited extent, all National Association of Securities Dealers, Inc. types of debt and equity securities, other than ownership ("NASD"). Accordingly, Company will be subject to the interests in open-end investment companies; recordkeeping and reporting obligations, fiduciary stan- (2) Acting as agent in the private placement of all types dards, and other requirements of the Securities Exchange of securities, and buying and selling all types of securi- Act of 1934, the SEC, and the NASD. ties on the order of customers as a "riskless principal"; (3) Making, acquiring and servicing loans and other Underwriting and Dealing in Bank-Ineligible Securities extensions of credit, pursuant to section 225.25(b)(1) of Regulation Y (12 C.F.R. 225.25(b)(1)); The Board has determined—subject to the prudential (4) Providing investment and financial advisory ser- framework of limitations established in previous decisions vices, pursuant to section 225.25(b)(4) of Regulation Y to address the potential for conflicts of interests, unsound (12 C.F.R. 225.25(b)(4)); banking practices, or other adverse effects—that the pro- (5) Arranging commercial or industrial real estate equity posed activities of underwriting and dealing in bankfinancing, pursuant to section 225.25(b)(14) of Regula- ineligible securities are so closely related to banking as to tion Y (12 C.F.R. 225.25(b)(14)); be a proper incident thereto within the meaning of section (6) Underwriting and dealing in obligations of the United 4(c)(8) of the BHC Act.2 Bank of Boston has committed States and Canada, general obligations of U.S. states, that Company will conduct these underwriting and dealing Canadian provinces, and their political subdivisions, activities using the same methods and procedures and and other obligations in which state member subject to the same prudential limitations established by banks may underwrite and deal under 12 U.S.C. §§ 335 the Board in the Section 20 Orders. and 24(7) ("bank-eligible securities"), pursuant Bank of Boston has requested that the Board permit its to section 225.25(b)(16) of Regulation Y (12 C.F.R. subsidiary banks, or subsidiaries thereof, (each "clearing 225.25 (b)(16»; affiliates") to perform certain clearing services for Com- (7) Providing full-service securities brokerage and re- pany with respect to futures, options on futures, and oplated services, pursuant to section 225.25(b)(15) of Reg- tions on United States government securities and certain ulation Y (12 C.F.R. 225.25(b)(15)); money market instruments. Bank of Boston has committed (8) Acting as broker and agent and providing advisory that Company and its clearing affiliates will engage in these services with respect to interest rate and currency swaps activities subject to the conditions and restrictions previand swap derivative products, and swaps, swap deriva- ously relied on by the Board in approving such activities.3 tive products and over-the-counter options linked to certain commodities, stock, bond or commodity indices, a specially tailored basket of securities selected by the parties, or particular equity securities; and 2. See J.P. Morgan & Co. Inc., et. al., 75 Federal Reserve Bulletin 192 (1989), aff'd sub nom. Securities Industry Ass'n v. Board of (9) Providing advisory services, including discretionary Governors of the Federal Reserve System, 900 F.2d 360 (D.C. Cir. portfolio management services, with respect to futures 1990); Citicorp, 73 Federal Reserve Bulletin 473 (1987) {"Citiand options on futures on financial and nonfinancial corp"), aff'd sub nom. Securities Industry Ass'n v. Board of Govercommodities. nors of the Federal Reserve System, 839 F.2d 47 (2d Cir.), cert, denied, 486 U.S. 1059 (1988), as modified by Review of Restrictions on Director, Officer and Employee Interlocks, Cross-Marketing Activi- Notice of the proposal, affording interested persons an ties, and the Purchase and Sale of Financial Assets Between a Section opportunity to submit comments, has been published 20 Subsidiary and an Affiliated Bank or Thrift, 61 Federal Register (61 Federal Register 50,825 and 52,946 (1996)). The time 57,679 (1996) (collectively, "Section 20 Orders"). for filing comments has expired, and the Board has consid- 3. See Letter from Jennifer J. Johnson, Deputy Secretary of the Board, to John R. McCulloh, Counsel, First Chicago Corporation ered the notice and all comments received in light of the (April 21, 1995). Specifically, Bank of Boston has committed that it factors set forth in section 4(c)(8) of the BHC Act. will provide each clearing alfiliate with a written guarantee indemnify- Bank of Boston, with total consolidated assets of approx- ing the clearing affiliates against any losses that many arise from imately $62 billion, is the 15th largest banking organiza- Company's nonperformance, and that all extensions of credit from the tion in the United States.1 Bank of Boston operates subsid- clearing affiliates to Company will be incidental to the clearing of futures, options on futures, and options transactions, fully secured by iary banks in Massachusetts, Connecticut, Florida, New U.S. dollars or U.S. government securities deposited by Company with Hampshire, and Rhode Island; controls a special purpose the clearing affiliates, and repaid within one hour. In addition, there will not be any employees in common between Company and the clearing affiliates; Company will remain separately incorporated, cap- 1. Asset and ranking data are as of September 30, 1996. italized, and funded, and will be operationally distinct from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 1997 The Board expects Bank of Boston to ensure that the from) the customer.6 A broker-dealer acting as a riskless framework established pursuant to the Section 20 Orders principal is not obligated to buy (or sell) a security for its will be maintained in all other respects. customer until after the broker-dealer executes the offset- The Board has determined that the conduct of the securi- ting purchase (or sale) for its own account. Riskless princities underwriting and dealing activities proposed by Bank pal transactions are understood in the industry to include of Boston is consistent with section 20 of the Glass- only transactions in the secondary market. Thus, Company Steagall Act (12 U.S.C. § 377), provided that the company would not act as riskless principal in selling bank-ineligible engaged in the underwriting and dealing activities derives securities at the order of a customer that is the issuer of the no more than 10 percent of its total gross revenue from securities to be sold, or in any transaction in which Comunderwriting and dealing in bank-ineligible securities over pany has a contractual agreement to place the securities as any two-year period.4 Bank of Boston has committed that agent of the issuer. Company would also not act as a Company will conduct its bank-ineligible securities under- riskless principal in any transaction involving a bankwriting and dealing activities subject to the 10-percent ineligible security for which it or an affiliate makes a revenue test established by the Board in previous orders.5 market. The Board has determined by order that, subject to Private Placement and "Riskless Principal" Activities certain prudential limitations, the proposed private placement activities and riskless principal activities are so Private placement involves the placement of new issues of closely related to banking as to be a proper incident thereto securities with a limited number of sophisticated purchas- within the meaning of section 4(c)(8) of the BHC Act.7 ers in a nonpublic offering. A financial intermediary in a The Board also has determined that acting as agent in the private placement transaction acts solely as an agent of the private placement of securities, and purchasing and selling issuer in soliciting purchasers and does not purchase the securities on the order of investors as a riskless principal, securities and attempt to resell them. Securities that are do not constitute underwriting and dealing in securities for privately placed are not subject to the registration require- purposes of section 20 of the Glass-Steagall Act. Accordments of the Securities Act of 1933 and are offered only to ingly, revenue derived from these activities is not subject to financially sophisticated institutions and individuals and the 10-percent revenue limitation on bank-ineligible securinot to the public. Company would not privately place ties underwriting and dealing.8 registered securities and would place securities only with Bank of Boston has committed that Company will concustomers that qualify as accredited investors. duct its private placement activities using the same meth- "Riskless principal" is the term used in the securities ods and procedures, and subject to the same prudential business to refer to a transaction in which a broker-dealer, limitations established by the Board in Bankers Trust and after receiving an order to buy (or sell) a security for a J.P. Morgan, including the comprehensive framework of customer, purchases (or sells) the security for its own restrictions imposed by the Board in connection with unaccount to offset a contemporaneous sale to (or purchase derwriting and dealing in bank-ineligible securities, which were designed to avoid potential conflicts of interests, unsound banking practices, and other adverse effects.9 Bank of Boston also has committed that Company will conduct its riskless principal activities subject to the limitaclearing affiliates; and all services performed on behalf of Company, including extensions of credit, will be in accordance with the require- tions previously established by the Board.10 ments of sections 23A and 23B of the Federal Reserve Act. 4. See Section 20 Orders. Compliance with the 10-percent revenue limitation shall be calculated in accordance with the method stated in J.P. Morgan & Co. Inc., 75 Federal Reserve Bulletin 192 (1989), as 6. See SEC Rule 10b-10(a)(8)(i) (17 C.F.R. 240.10b-10(a)(8)(i)). As modified by the Order Approving Modifications to the Section 20 a registered broker-dealer, Company would conduct its riskless princi- Orders, 75 Federal Reserve Bulletin 751 (1989), the Order Approving pal activities in accordance with the customer disclosure and other Modifications to the Section 20 Orders, 79 Federal Reserve Bulletin requirements of the federal securities laws. 226 (1993), the Supplement to Order Approving Modifications to 7. See J.P. Morgan & Co. Inc., 76 Federal Reserve Bulletin 26 Section 20 Orders, 79 Federal Reserve Bulletin 360 (1993), and the (1990) ("J.P. Morgan"); Bankers Trust New York Corporation, 10 Percent Revenue Limit on Bank-Ineligible Activities of Subsidiaries 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). of Bank Holding Companies Engaged in Underwriting and Dealing in 8. See Bankers Trust. Securities, 82 Federal Reserve Bulletin 1008 (1996). The Board notes 9. Among the prudential limitations discussed more fully in Bankers that Bank of Boston has not adopted the Board's alternative indexed- Trust and J.P. Morgan, Bank of Boston has committed that Company revenue test to measure compliance with the 10-percent limitation on will not privately place registered investment company securities or bank-ineligible securities activities, and, absent such election, Bank of securities of investment companies that are sponsored or advised by Boston would continue to employ the Board's original 10-percent Bank of Boston or any of its affiliates. In addition, Company will revenue test. make no general solicitation or general advertising for securities it 5. Company also may engage in activities that are necessary inci- places. dents to the proposed underwriting and dealing activities, provided 10. See The Bank of New York Company, Inc., 82 Federal Reserve that they are treated as part of the bank-ineligible securities activities. Bulletin 748 (1996); Order Revising the Limitations Applicable to Unless Company receives specific approval under section 4(c)(8) of Riskless Principal Activities, 82 Federal Reserve Bulletin 759 (1996). the BHC Act to conduct the activities independently, any revenues Neither Company nor its affiliates will hold themselves out as making from the incidental activities must be counted as ineligible revenues a market in the bank-ineligible securities that Company buys and sells subject to the 10-percent revenue limitation. as riskless principal, or enter quotes for specific bank-ineligible secu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 45 Other Activities ing practices."14 As part of its evaluation of these factors, the Board considers the financial condition and managerial The Board previously has determined that a bank holding resources of the notificant and its subsidiaries and the effect company may act as a broker or agent and provide advi- the transaction would have on such resources.15 The Board sory services with respect to various swap transactions, has reviewed the capitalization of Bank of Boston and including commodity and index swaps based on specially Company in accordance with the standards set forth in the tailored baskets of securities selected by the public and Section 20 Orders and finds the capitalization of Bank of swaps and swap derivative products linked to particular Boston and the proposed capitalization of Company to be equity securities.11 The Board also has determined by consistent with approval of the proposal. The Board's regulation that bank holding companies may engage in determination concerning the proposed capitalization of lending, investment and financial advisory, commercial or Company is based on all the facts of record, including industrial real estate equity financing, bank-eligible securi- Bank of Boston's projections for Company's underwriting ties underwriting and dealing, and securities brokerage and dealing activities in bank-ineligible securities. On the activities.12 Bank of Boston has committed that Company basis of all the facts of record, and subject to the complewill conduct these activities in accordance with the limita- tion of a satisfactory infrastructure review, the Board contions set forth in Regulation Y, the Board's orders, and cludes that financial and managerial considerations are related interpretations relating to each of these activities.13 consistent with approval of the notice. As noted above, Bank of Boston has committed that Proper Incident to Banking Standard Company will conduct its bank-ineligible securities underwriting and dealing activities in accordance with the pru- In order to approve this notice, the Board also must con- dential framework established by the Board's Section 20 sider whether the performance of the proposed activities is Orders. Under the framework and conditions established in a proper incident to banking, that is, whether the activities this order and the Section 20 Orders, the Board concludes proposed "can reasonably be expected to produce benefits that Company's proposed limited conduct of bankto the public . . . that outweigh possible adverse effects, ineligible securities underwriting and dealing activities is such as undue concentration of resources, decreased or not likely to result in significantly adverse effects, such as unfair competition, conflicts of interests, or unsound bank- undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices. Similarly, the Board finds no evidence that Company's rities in any dealer quotation system in connection with Company's private placement, riskless principal, and other activities— riskless principal transactions, except that Company and its affiliates conducted under the framework and conditions established may enter bid or ask quotations, or publish "olfering wanted" or "bid in this order—would likely result in any significantly adwanted" notices on trading systems other than NASDAQ or an verse effects. exchange, if Company or the affiliate does not enter price quotations on different sides of the market for a particular security for two The Board expects, moreover, that the de novo entry of business days. That is, Company or its affiliate must wait at least two Company into the market for the proposed services would business days after entering a "bid" quotation on a security before provide added convenience to Bank of Boston's customers, entering an "ask" quotation with respect to the same security, and lead to improved methods of meeting customer financing vice-versa. Company may not act as riskless principal for registered needs, and increase the level of competition among existinvestment company securities or for any securities of investment companies that are advised by Bank of Boston or any of its affiliates. ing providers of these services. Accordingly, the Board has In addition, because Bank of Boston proposes that Company provide determined that the performance of the proposed activities riskless principal services in combination with investment advisory by Bank of Boston can reasonably be expected to produce services, Company must conduct its riskless principal activities in public benefits that outweigh possible adverse effects under accordance with the limitations established by the Board for the the proper incident to banking standard of section 4(c)(8) full-service brokerage activities of bank holding companies. See 12 C.F.R. 225.25(b)(15). of the BHC Act. 11. See, e.g., Caisse National de Credit Agricole, S.A., 82 Federal Reserve Bulletin 754 (1996); Swiss Bank Corporation, 81 Federal Conclusion Reserve Bulletin 185 (1995). 12. See 12 C.F.R. 225.25(b)(1), (b)(4), (b)(14), (b)(15) and (b)(16). 13. To address the potential conflicts of interests arising from Based on all the facts of record, and subject to the commit- Company's conduct of both full-service brokerage activities and bank- ments made by Bank of Boston, as well as the terms and ineligible securities underwriting and dealing activities, Bank of Bosconditions set forth in this order and in the Board orders ton has committed that Company will inform its brokerage customers noted above, the Board has determined that the notice at the commencement of the relationship that, as a general matter, Company may be a principal or may be engaged in underwriting with should be, and hereby is, approved. Approval of the prorespect to, or may purchase from an affiliate, those securities for which posal also is conditioned on compliance by Bank of Boston brokerage and advisory services are provided. In addition, at the time and Company with the commitments made in connection any brokerage order is taken, Company will inform brokerage customers (usually orally) whether Company is acting as agent or principal with respect to a security. Confirmations sent to customers also will state whether Company is acting as agent or principal. See, e.g., PNC Financial Corporation, 75 Federal Reserve Bulletin 396 (1989); 14. 12 U.S.C. § 1843(c)(8). Bankers Trust New York Co., 74 Federal Reserve Bulletin 695 (1988). 15. See 12 C.F.R. 225.24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1997 with the notice, the conditions referenced in this order, and wholly owned subsidiary, First Federal Savings Bank of the above-cited Board regulations and orders. Southwest Georgia ("FFSB"), both of Donalsonville, The Board's approval of the proposed underwriting and Georgia, and thereby to engage in operating a savings dealing activities is conditioned on a future determination association. by the Board that Bank of Boston and Company have Notice of this proposal, affording interested persons an established policies and procedures to ensure compliance opportunity to submit comments, has been published with the conditions and restrictions previously relied on by (61 Federal Register 50,300 (1996)). The time for filing the Board in approving these activities and the other re- comments has expired, and the Board has considered the quirements of this order and the Section 20 Orders, includ- application and all comments received in light of the ing computer, audit and accounting systems, internal risk factors set forth in section 4(c)(8) of the BHC Act. management controls and the necessary operational and The Board previously has determined by regulation that managerial infrastructure. On notification by the Board that the operation of a savings association by a bank holding this condition has been satisfied, Company may commence company is closely related to banking for purposes of the proposed underwriting and dealing activities, subject to section 4(c)(8) of the BHC Act.1 The Board requires savthe other conditions of this order and the Section 20 ings associations acquired by bank holding companies to Orders. conform their direct and indirect activities to those permis- The Board's determination also is subject to all the terms sible for bank holding companies under section 4 of the and conditions set forth in Regulation Y, including those in BHC Act and Regulation Y. Southwest and FFSB do not sections 225.7 and 225.23(g) (12 C.F.R. 225.7 and engage in any activities that are not permissible for bank 225.23(g)), and to the Board's authority to require modifi- holding companies under the BHC Act. cation or termination of the activities of a bank holding First State is the 138th largest depository institution in company or any of its subsidiaries as the Board finds Georgia, controlling $69.8 million in deposits, representing necessary to assure compliance with, and to prevent eva- less than 1 percent of total deposits in depository institusion of, the provisions of the BHC Act and the Board's tions in the state.2 Southwest is the 140th largest depository regulations and orders issued thereunder. In approving the institution in Georgia, controlling deposits $69.6 million proposal, the Board has relied on all the facts of record and deposits. On consummation of the proposal and the proall the representations and commitments made by Bank of posed divestiture, First State would become the 64th larg- Boston. These commitments and conditions shall be est depository institution in Georgia, controlling total dedeemed to be conditions imposed in writing by the Board posits of $120.8 million, representing less than 1 percent of in connection with its findings and decisions, and may be the total deposits in depository institutions in the state.3 enforced in proceedings under applicable law. This transaction shall not be consummated later than Competitive Considerations three months after the effective date of this order, unless such period is extended for good cause by the Board or the Under section 4(c)(8) of the BHC Act, the Board is re- Federal Reserve Bank of Boston, acting pursuant to dele- quired to consider whether a proposal is likely to result in gated authority. any significantly adverse effects, such as undue concentra- By order of the Board of Governors, effective Novem- tion of resources, decreased or unfair competition, conflicts ber 12, 1996. of interests, or unsound banking practices. First State's bank subsidiary, First State Bank of Blakely, Blakely, Voting for this action: Vice Chair Rivlin and Governors Kelley, Georgia ("First State Bank"), and Southwest's thrift sub- Lindsey, Phillips, Yellen. and Meyer. Absent and not voting: Chair- sidiary, FFSB, compete directly in the Early County bankman Greenspan. ing market.4 The Board previously determined that the acquisition of Southwest by First State, without divesti- WILLIAM W. WILES tures, would have significantly adverse competitive effects Secretary of the Board on the Early County banking market that were not outweighed by the public benefits that might have resulted First State Bancshares of Blakely, Inc. from consummation of the proposal. On this basis, the Blakely, Georgia Board denied First State's previous notice under section 4(c)(8) of the BHC Act to acquire Southwest.5 Order Approving the Acquisition of a Savings Association First State Bancshares of Blakely, Inc., Blakely, Georgia 1. 12 C.F.R. 225.25(b)(9). ("First State"), a bank holding company within the mean- 2. In this context, depository institutions include commercial banks, ing of the Bank Holding Company Act ("BHC Act"), has savings banks, and savings associations. requested the Board's approval under section 4(c)(8) of the 3. Deposit data are as of December 31, 1995. 4. The Early County banking market is approximately Early County, BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of Georgia, except the town of Arlington, Georgia. the Board's Regulation Y (12 C.F.R. 225.23) to acquire 5. First State Bancshares of Blakely, Inc., 82 Federal Reserve First Southwest Bancorp, Inc. ("Southwest"), and its Bulletin 957 (1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 47 In order to mitigate the adverse competitive effects of the mined that the notice should be, and hereby is, approved. proposed acquisition in the Early County banking market, Approval of this notice is specifically conditioned on com- First State and Southwest have committed to divest FFSB's pliance by First State and Southwest with the divestiture only branch in Early County to an out-of-market competi- and other commitments made in connection with this notor.6 Accordingly, consummation of the proposal would not tice. The Board's determination also is subject to all the increase the concentration of banking resources in the terms and conditions set forth in Regulation Y, including Early County banking market. First State Bank also oper- those in sections 225.7 and 225.23(b) (12 C.F.R. 225.27 ates in Calhoun County, and FFSB also operates in Semi- and 225.23(b)), and to the Board's authority to require nole and Miller Counties and has received approval to such modification or termination of the activities of a bank open a branch in Doughtery County, all in Georgia. Con- holding company or any of its subsidiaries as the Board summation of the proposal would not have a significantly finds necessary to ensure compliance with, and to prevent anticompetitive effect in any of those markets. Based on all evasion of, the provisions of the BHC Act and the Board's the facts of record, including the proposed divestiture, the regulations and orders thereunder. For purposes of this Board has concluded that the proposal would not have a transaction, the commitments and conditions relied on by significantly adverse effect on competition in Early County the Board in reaching this decision are deemed to be or in any other relevant banking market. conditions imposed in writing by the Board in connection with its findings and decision, and as such may be enforced Other Considerations in proceedings under applicable law. These activities shall not be commenced later than three As part of its evaluation of the factors under section 4 of months after the effective date of this order, unless such the BHC Act, the Board also has considered the financial period is extended for good cause by the Board or by the condition and managerial resources of First State, South- Federal Reserve Bank of Atlanta pursuant to delegated west, and their subsidiaries and the effect of the proposed authority. transaction on these resources.7 Based on all the facts of By order of the Board of Governors, effective Novemrecord, including relevant reports of examination, the ber 6, 1996. Board concludes that financial and managerial resources are consistent with approval of this proposal. Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and For the reasons discussed above, and relying on all the Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. commitments made in connection with this proposal and the conditions discussed in this order, the Board concludes JENNIFER J. JOHNSON Deputy Secretary of the Board that the proposal is not likely to result in decreased or unfair competition, conflicts of interests, unsound banking practices, undue concentration of resources, or other ad- South Central Texas Bancshares, Inc. verse effects. The Board expects, moreover, that the acqui- Flatonia, Texas sition of Southwest by First State would result in greater efficiencies and economies of scale and, accordingly, would enable both institutions to offer increased services, to lower Order Approving Notice to Acquire Shares of a Savings costs, and to provide added convenience to their custom- Association ers. Accordingly, the Board has determined that the proposal can be expected to produce public benefits that outweigh any adverse effects under the proper incident to South Central Texas Bancshares, Inc., Flatonia ("South banking standard of section 4(c)(8) of the BHC Act. Central"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has re- Based on the foregoing and all the facts of record, quested the Board's approval under section 4(c)(8) of the including the proposed divestiture, the Board has deter- 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 18.37 percent of the outstanding voting shares of Fayette 6. First State has committed to execute a sales agreement to divest Savings Association, La Grange ("Fayette Savings"), both FFSB's office in Blakely, Early County, Georgia, before consummain Texas. tion of this proposal and to complete the divestiture within 180 days of consummation. First State also has committed that, if it is unsuccess- Notice of the proposal, affording interested persons an ful in completing the divestiture within 180 days of consummation, it opportunity to submit comments, has been published will transfer the Blakely office to an independent trustee who will be (61 Federal Register 47,944 (1996)). The time for filing instructed to sell the assets promptly. First State has signed a letter of comments has expired, and the Board has considered the intent to sell FFSB's Blakely office to an out-of-market competitor and expects a definitive purchase and assumption agreement to be notice and all comments received in light of the factors set executed shortly. First State has committed to submit to the Board an forth in section 4(c)(8) of the BHC Act. appropriate form of trustee agreement if the sale of FFSB's Blakely South Central, with total consolidated assets of office is not consummated within 90 days after consummation of this $79.3 million, operates two subsidiary banks in Texas, proposal. Flatonia State Bank, Flatonia, Texas ("Flatonia Bank"), 1. See 12 C.F.R. 225.24; see also The Fuji Bank, Ltd., 75 Federal Reserve Bulletin 94 (1989). and Central Texas Bank, Gonzales, Texas ("Central Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • January 1997 Bank").1 South Central is the 282d largest depository to banking, that is, that the proposal "can reasonably be organization in Texas, controlling $66.6 million in depos- expected to produce benefits to the public, such as greater its, representing less than 1 percent of total deposits in convenience, increased competition, or gains in efficiency, depository institutions in the state.2 Fayette Savings is the that outweigh unfair competition, conflicts of interests, or 399th largest depository organization in Texas, controlling unsound banking practices."6 As part of the Board's evalu- $46.5 million in deposits, representing less than 1 percent ation of these factors, the Board has carefully reviewed the of total deposits in depository institutions in the state. On financial and managerial resources of South Central, Fayconsummation of the proposal, South Central would be- ette Savings, and their respective subsidiaries,7 and the come the 169th largest depository organization in Texas, effect the transaction would have on such resources in light controlling deposits of $113.2 million, representing less of all the facts of record.8 These facts of record include than 1 percent of total deposits in depository institutions in confidential reports of examination and other supervisory the state. information received from the primary federal supervisors Although South Central's 18.37 percent voting interest of the organizations assessing their financial and managewould not give it absolute voting control over the opera- rial resources and compliance with consumer-related laws.9 tions of Fayette Savings, South Central intends to exercise The Board has carefully considered the comments of a controlling influence over the management and policies Fayette Savings contending that South Central may disrupt of the thrift as Fayette Savings's largest shareholder, to the management of Fayette Savings and act against the best seek representation on the Fayette Savings's board of direc- interests of the institution. In reviewing cases similar to tors, and to acquire up to 100 percent of the voting shares this proposal, the Board has indicated that the BHC Act of Fayette Savings in the future.3 In light of this, South contemplates proposals that would allow a bank holding Central has agreed to serve as a source of financial and company to acquire less than a majority of the voting managerial strength for Fayette Savings and has acknowledged its liability under the cross-guarantee provisions in the Federal Deposit Insurance Act ("FDI Act").4 The Board has determined that the operation of a savings 6. 12 U.S.C. § 1843(c)(8). association by a bank holding company is closely related to 7. The Board has carefully considered comments from Fayette banking for purposes of section 4(c)(8) of the BHC Act.5 Savings alleging that, by making certain statements to the media regarding potential purchases of Fayette Savings shares, the manage- In making this determination, the Board requires that savment of South Central violated Texas law, federal securities laws and ings associations acquired by bank holding companies Office of Thrift Supervision ("OTS") regulations incorporating these conform their direct and indirect activities to those permis- laws. This matter has been reviewed by the Texas Savings and Loan sible for bank holding companies under section 4(c)(8) of Department and the OTS, and neither agency has determined that the BHC Act. South Central has committed that, should South Central's conduct constituted a violation as alleged by Fayette Savings. In addition, the Board has provided a copy of Fayette Fayette Savings engage in any activities that are impermis- Savings's allegations to the Securities and Exchange Commission, sible for a bank holding company, South Central would, which has express statutory authority to investigate and prosecute the within two years of the commencement of those activities, type of federal securities law violations alleged by Fayette Savings. reduce its interest in the voting shares of Fayette Savings to Fayette Savings also questions whether an interlocking director with less than 5 percent or cause Fayette Savings to cease such South Central would violate the Depository Institution Management Officials Interlocks Act (12 U.S.C. § 3210 et seq.) ("Interlocks Act"). impermissible activities by acquiring voting control of the In light of all the facts of record, including South Central's position as association, unless South Central has received approval Fayette Savings's largest shareholder and its intent to exercise a from the Federal Reserve System to engage in those activi- controlling influence over the management and policies of Fayette ties. The Board concludes that the commitment provides Savings, South Central and Fayette Savings would be "affiliates" for reasonable assurances that the bank holding company purposes of the Interlocks Act; and, thus, an interlocking director would not be prohibited. See 12 U.S.C. § § 1841(d)(3), 3201(3)(A). would not engage in impermissible nonbanking activities 8. See 12 C.F.R. 225.24; see also The Fuji Bank, Limited, through its investment in Fayette Savings. 75 Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, In order to approve the proposal, the Board also must 73 Federal Reserve Bulletin 155 (1987). 9. Fayette Savings questions why South Central's pro forma finandetermine that the proposed activities are a proper incident cial statements do not reflect the "goodwill" currently maintained by Fayette Savings. Staff has reviewed South Central's pro forma financial statements and determined that the proposed investment in Fay- 1. Consolidated asset data are as of June 30, 1996. Deposit data are ette Savings, which is reflected at cost, is consistent with generally as of June 30, 1995. accepted accounting principles. Fayette Savings also contends that 2. In this context, depository institutions include commercial banks, South Central's application did not disclose certain information, insavings banks, and savings associations. cluding that Fayette Savings is authorized to engage in activities that 3. The Board has carefully considered comments from Fayette are impermissible for a bank holding company, that two principals of Savings contending, on the basis of certain public statements and South Central own shares of Fayette Savings, and that Fayette Savfinancial information, that the shares of Fayette Savings that South ings's board of directors adopted a shareholder rights plan. The Board Central proposes to acquire are currently controlled by South Central has reviewed these comments concerning the accuracy and disclosure without the prior approval of the Board, in violation of the BHC Act. of information in light of confidential reports of examination, relevant South Central denies this, and other facts of record do not support this accounting principles, submissions from South Central, other informaallegation. tion from supervisory agencies, and all other facts of record, and 4. See 12 U.S.C. § 1815(e). found no material omissions or inaccuracies by South Central oc- 5. 12 C.F.R. 225.25(b)(9). curred. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 49 shares of a bank or bank holding company.10 In this case, banking markets,13 and a large number of depository insti- South Central would become the largest shareholder of tutions would continue to operate in these markets.14 The Fayette Savings and has the capability to serve as a source Department of Justice has reviewed the proposal and adof managerial and financial strength to Fayette Savings. vised the Board that consummation of the proposal would South Central contends moreover, that the acquisition of not likely have any significantly adverse competitive efthe 18.37 percent block that has become available in this fects. Based on these and all other facts of record, the case is an important step in acquiring control of Fayette Board concludes that consummation of the proposal would Savings. In addition, South Central states that it does not not result in any significantly adverse effects on competiintend to disrupt the management of Fayette Savings and tion or on the concentration of banking resources in the intends to serve as a source of managerial strength to Fayette County or Colorado County banking markets or Fayette Savings. The Board has considered the financial any other relevant banking market. and managerial resources of South Central in light of relevant reports of examination, and other supervisory in- A. Record of Performance under the Community formation. Based on all the facts of record, the Board Reinvestment Act concludes that the financial and managerial resources of the organizations involved in this proposal are consistent In acting on a proposal to acquire a savings association with approval. under section 4(c)(8) of the BHC Act, the Board reviews the records of the relevant depository institutions under the Competitive Considerations Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA").15 The Board has evaluated the record of perfor- The Board has carefully reviewed the competitive effects mance of South Central's depository institutions and Fayof this proposal in light of all the facts of record, including ette Savings in light of the CRA performance examinations comments from Fayette Savings that the proposal would by their primary federal supervisors. The Board also has have significant anticompetitive effects. South Central and carefully considered comments from Fayette Savings con- Fayette Savings compete directly in the Colorado County, tending that South Central's record of lending within its Texas,11 banking market and the Fayette County, Texas, banking market.12 Consummation of the proposal would not cause the levels of concentration as measured by the 13. On consummation of the proposal, the HHI would not increase Herfindahl-Hirschman Index ("HHI") to exceed the Dein the Colorado County banking market and would increase by 194 partment of Justice merger guidelines in either of these points to 1373 in the Fayette County banking market. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately concentrated. The 10. See Hudson Financial Associates, 72 Federal Reserve Bulletin Department of Justice has informed the Board that a bank merger or 150 (1986); City Holding Company, 71 Federal Reserve Bulletin 575 acquisition will not be challenged (in the absence of other factors (1985). indicating anti-competitive effects) unless the post-merger HHI is at 11. The Colorado County, Texas, banking market is approximated least 1800 and the merger increases the HHI by more than 200 points. by Colorado County, Texas. The Department of Justice has stated that the higher than normal HHI 12. Fayette Savings contends that the Board should separately thresholds for screening bank mergers for anticompetitive effects consider the competitive effects of the proposal in the city of Flatonia, implicitly recognize the competitive effect of limited purpose lenders Texas, which is within the Fayette County, Texas, banking market, and other non-depository financial entities. and that the proposal would result in the monopolization of banking in Market data are as of June 30, 1995, and are based on calculations Flatonia. The Board and the courts have found that the relevant in which the deposits of thrift institutions are included at 50 percent. banking market for analyzing the competitive effects of a proposal The Board previously has indicated that thrift institutions have bemust reflect commercial and banking realities and should consist of come, or have the potential to become, significant competitors of the local area where the financial institutions involved offer their commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin services and where local customers can practicably turn for alterna- 743 (1984). Because the deposits of Fayette Savings would be contives. See St. Joseph Valley Bank, 68 Federal Reserve Bulletin 673, trolled by a commercial banking organization after consummation of 674 (1982). The key question to be considered in making this decision the proposal, those deposits are included at 100 percent in the calcula- "is not where the parties to the merger do business or even where they tion of Applicant's pro forma market share. See Norwest Corporation, compete, but where, within the area of competitive overlap, the effect 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal of the merger on competition will be direct and immediate." United Reserve Bulletin 669 (1990). States v. Philadelphia National Bank, 374 U.S. 321, 357 (1963); 14. After consummation of the proposal, South Central would United States v. Phillipsburg National Bank, 399 U.S. 350, 364-65 become the largest depository institution in the Fayette County bank- (1969). In considering the appropriate market for analyzing the com- ing market and the fifth largest depository institution in the Colorado petitive effects of the proposal, the Board has considered all the facts County banking market. South Central would control approximately of record, including commercial banking data, and demographic and 21.5 percent of total deposits in depository institutions in the Fayette economic factors, such as commuting patterns, media advertising, and County banking market ("market deposits") and 5.2 percent of marnewspaper subscription statistics. Interviews with banks in Fayette ket deposits in the Colorado County banking market after consumma- County were conducted to ascertain the scope of each institution's tion of the proposal. In addition, 10 depository institutions would market area and the extent of its advertising throughout Fayette remain in the Fayette County banking market and 7 depository institu- County, Texas. Based on all the facts of record, the Board concludes tions would remain in the Colorado County banking market after that Flatonia, Texas, is not the appropriate banking market in this case consummation of the proposal. and that the Fayette County, Texas, banking market, which is approxi- 15. See Norwest Corporation, 76 Federal Reserve Bulletin 873 mated by Fayette County, Texas, is the appropriate banking market. (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • January 1997 community is inadequate,16 and from two individual com- The FDIC examiners also determined that the distribumenters alleging that South Central's subsidiary bank, Fla- tion of Flatonia Bank's loan portfolio was commensurate tonia Bank, illegally discriminates against minorities in with the economic composition and credit needs of its providing lending and banking services.17 delineated community. The examiners noted that Flatonia An institution's most recent CRA performance evalua- Bank had a satisfactory loan-to-deposit ratio and geotion is a particularly important consideration in the applica- graphic loan distribution record and that these factors tions process because it represents a detailed on-site evalu- showed adequate credit dispersion. They also noted that ation of the institution's overall record of performance the volume and geographic dispersion of Flatonia Bank's under the CRA by its primary federal supervisor.18 In loans exhibited the bank's satisfactory record of meeting addition, the Board considers an institution's policies and its community credit needs. In addition, the FDIC examinpractices for compliance with applicable fair lending laws. ers found that the board of directors of Flatonia Bank, The Board also takes into account information on an insti- through its active participation in community affairs and tution's lending activities that assist in meeting the credit organizations, had identified housing credit as the primary needs of low- and moderate-income neighborhoods. credit need of its delineated communities, and had ap- Performance Examinations. South Central's two subsid- proved the funding of additional loans to meet this need. iary banks, Flatonia Bank and Central Bank, received The 1995 examination of Flatonia Bank also noted that the "satisfactory" ratings from their primary federal supervi- bank offers checking accounts without monthly fees or sor, the FDIC, at their most recent CRA examinations, as service charges to all customers. of October 25, 1995 and April 1, 1996, respectively. Fay- The 1996 examination of Central Bank found that the ette Savings also received a "satisfactory" rating from its bank had demonstrated satisfactory lending performance primary federal supervisor, the OTS, at its most recent with respect to its loan-to-deposit ratio, geographic distri- CRA examination, as of October 13, 1995. bution of loans, lending within its assessment area, and South Central's Record of Lending. FDIC examiners lending to individuals of different incomes and to busifound no evidence of prohibited discrimination or other nesses of different asset sizes.19 In addition, the bank was illegal credit practices at Flatonia Bank and Central Bank, found to offer credit counseling seminars for church and concluded that both institutions were in compliance groups, as well as for customers who previously were with the substantive provisions of the fair lending laws. In denied a loan. The FDIC examiners noted that this counselthe 1995 examination of Flatonia Bank, examiners specifi- ling program has resulted in some of these customers cally noted that the institution accepted credit applications eventually being approved for loans by Central Bank. The from all segments of its community, and that a review of examiners also noted that, in 1995, Central Bank develunderwriting procedures and loan denials revealed no evi- oped a low-cost checking account for low-income individdence of practices intended to discourage or pre-screen uals. applicants or potential applicants on a prohibited basis. The 1996 examination of Central Bank concluded that the B. Conclusion Regarding CRA Considerations institution's fair lending policies, procedures, training programs, and internal assessment efforts were adequate. The The Board has carefully reviewed all the facts of record in FDIC examiners also concluded that Central Bank's delin- considering the CRA performance record of South Ceneated communities were reasonable and did not exclude tral's subsidiary banks and Fayette Savings, including inany low- to moderate-income neighborhoods. In addition, formation provided by commenters to the proposal, South the examiners noted that Central Bank regularly conducts a Central's responses, and results of the performance examisecond review of all loan denials and an annual third nations of South Central's subsidiary banks and Fayette review of loan denials to determine if any particular seg- Savings. Based on this review, and for the reasons disment of its delineated community has a higher than aver- cussed in this Order, the Board concludes that considerage denial rate. ations relating to the CRA are consistent with approval. Conclusion 16. Specifically, Fayette Savings has alleged that Flatonia Bank and Central Bank do not have adequate records of providing loans in their The Board also has carefully considered the contentions of market and that the ratio of loans to assets is below that of Fayette Fayette Savings that the proposal would not result in any Savings. public benefits. The Board's consideration of public bene- 17. One individual commenter alleges that Flatonia Bank illegally discriminated against her parents in a loan transaction. The comment has been provided to the Federal Deposit Insurance Corporation ("FDIC"), Flatonia Bank's primary federal supervisor, for consider- 19. After considering the size, financial resources, and amount of ation. loans originated and sold, the level of unfunded commitments to lend, 18. The Statement of the Federal Financial Supervisory Agencies the removal of certain restrictions on the lending activities of the Regarding the Community Reinvestment Act provides that a CRA bank, and other facts in this case, examiners found Central Bank's examination is an important and often controlling factor in the consid- loan-to-deposit ratio to be satisfactory. Examiners commented favoreration of an institution's CRA record and that reports of these ably on the increase in loan originations during 1995, and noted that examinations will be given great weight in the applications process. over 90 percent of the loans originated were within Gonzales County, 54 Federal Register 13,742 and 13,745 (1989). Central Bank's CRA assessment area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 51 fits relating to a proposal necessarily involves a balancing The Board's determination is subject to all the conditions process that takes into account the extent of the potential set forth in Regulation Y, including those in sections 225.7 adverse effects resulting from the proposal. The proposal and 225.23(g) of Regulation Y (12 C.F.R. 225.7 and can reasonably be expected to produce notable public 225.25(g)), and to the Board's authority to require modifibenefits by providing additional financial and managerial cation or termination of the activities of a bank holding support for Fayette Savings through South Central's com- company or any of its subsidiaries as the Board finds mitment to serve as a source of financial strength for necessary to assure compliance with, and to prevent eva- Fayette Savings and South Central's responsibility under sion of, the provisions of the BHC Act and the Board's the cross-guarantee provisions of the FDI Act. The size of regulations and orders issued thereunder. The Board's deci- South Central's investment in Fayette Savings and its sion is specifically conditioned on South Central's compliliability under the cross-guarantee provisions of the FDI ance with the commitments made in connection with the Act also provide a significant financial incentive for South notice, including the commitments and conditions dis- Central to act in the best interest of Fayette Savings.20 As cussed in this order. The commitments and conditions noted above, the CRA performance record of South Cen- relied on in reaching this decision shall be deemed to be tral is consistent with approval; and, as explained above, conditions imposed in writing by the Board in connection the potential adverse effects, including competitive, mana- with its findings and decision and may be enforced in gerial, and other effects, are minimal. For these reasons, proceedings under applicable law. and in reliance on all the commitments made in connection This proposal shall not be consummated later than three with the proposal, the Board concludes that the potential months following the effective date of this order, unless for adverse effects, if any, under the factors required to be such period is extended for good cause by the Board or by considered under section 4(c)(8) of the BHC Act would be the Federal Reserve Bank of Dallas, acting pursuant to outweighed by the public benefits.21 Accordingly, the delegated authority. Board has determined that the proposal can reasonably be By order of the Board of Governors, effective Novemexpected to produce public benefits that outweigh any ber 18, 1996. adverse effects under the proper incident to banking standard of section 4(c)(8) of the BHC Act. Voting for this action: Vice Chair Rivlin and Governors Kelley, Based on the foregoing and all other facts of record, Lindsey, Phillips, Yellen, and Meyer. Absent and not voting: Chairman Greenspan. including all the commitments made by South Central in connection with this proposal, and subject to the terms and WILLIAM W. WILES conditions referenced in this Order, the Board has deter- Secretary of the Board mined that the notice should be, and hereby is, approved.22 ORDERS ISSUED UNDER INTERNATIONAL BANKING ACT 20. Fayette Savings contends that its shareholders could be adversely effected by the cross-guarantee provisions of the FDI Act. In Hongkong Bank of Canada light of South Central's financial resources, it appears unlikely that the Vancouver, British Columbia, Canada Fayette Savings shareholders would incur any liability for losses at South Central or its subsidiaries and that such potential liability would be offset by the benefits from South Central's financial support for Order Approving Establishment of Branches Fayette Savings. Additionally, there are public benefits to be derived from permitting capital markets to operate so that bank holding Hongkong Bank of Canada ("Bank"), Vancouver, British companies may make potentially profitable investments in nonbank- Columbia, Canada, a foreign bank within the meaning of ing companies when these investments are consistent, as in this case, with the relevant considerations under the BHC Act, and from permit- the International Banking Act ("IBA"), has applied under ting banking organizations to allocate their resources in the manner section 7(d) of the IBA (12 U.S.C. § 3105(d)) to establish they believe is most efficient. state-licensed branches in Portland, Oregon, and Seattle, 21. Fayette Savings and other commenters criticize the seller of the Washington, and acquire a portion of the assets and liabili- Fayette Savings shares and contend that Fayette Savings should remain as an independent financial institution. These comments do not ties of the existing Portland and Seattle branches of its relate to factors that the Board is required to consider under the BHC affiliate bank, Hongkong Shanghai Banking Corporation, Act. See Western Bancshares, Inc. v. Board of Governors, 480 F.2d Limited ("HSBC"), Hong Kong. The Foreign Bank Super- 749 (10th Cir. 1973). vision Enhancement Act of 1991, which amended the IBA, 22. Fayette Savings requested that the Board hold a public hearing in order to address public statements made by South Central. Under the Board's rules, a hearing is required under section 4 of the BHC Act only if there are disputed issues of material fact that cannot be has carefully considered the proposal in light of all the facts of record, resolved in some other manner. 12 C.F.R. 225.23(f). Fayette Savings including Fayette Savings's comments on the issues discussed above, does not identify disputed issues of fact that are material to the and, for the reasons discussed in this Order, has concluded that the Board's decision. In addition, interested parties have had an ample factors that the Board must consider under section 4 of the BHC Act opportunity to present their views, and Fayette Savings has submitted are consistent with approval. For these reasons, and based on all the substantial written comments that have been considered by the Board. facts of record, the Board has determined that a public hearing is not Fayette Savings's request fails to demonstrate why a written presenta- required or necessary to clarify the factual record in the notice, or tion would not suffice or to summarize the evidence that would be otherwise warranted in this case. Accordingly, the request for a public presented at a hearing or meeting. See 12 C.F.R. 662.3(e). The Board hearing on the notice is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • January 1997 provides that a foreign bank must obtain the approval of U.S. clients of the HSBC group that require assistance in the Board to establish a branch in the United States. the Pacific Northwest. Notice of the application, affording interested persons an In order to approve an application by a foreign bank to opportunity to submit comments, has been published in a establish a branch in the United States, the IBA and Regunewspapers of general circulation in Portland, Oregon lation K require the Board to determine that the foreign 0Oregonian, August 1, 1996), and Seattle, Washington bank applicant engages directly in the business of banking (Seattle Times, August 1, 1996). The time for filing com- outside of the United States and has furnished to the Board ments has expired, and all comments have been consid- the information it needs to assess the application adeered. quately. The Board also generally must determine whether Bank, with total consolidated assets equivalent to ap- the foreign bank is subject to comprehensive supervision proximately $15 billion,1 is the seventh largest banking or regulation on a consolidated basis by its home country organization in Canada. Bank operates 113 branches and supervisor (12 U.S.C. § 3105(d)(2) and (6); 12 C.F.R. has two subsidiaries in Canada. Bank's only operation 211.24(c)(1)). The Board also may take into account the outside Canada is a representative office in Hong Kong. additional standards set forth in the IBA (12 U.S.C. Bank and HSBC are indirectly owned by HSBC Hold- § 3105(d)(3)-(4)) and Regulation K (12 C.F.R. 211.24(c)). ings Pic ("Holdings"), London, England, a holding com- Bank engages directly in the business of banking outside pany that engages through subsidiaries in financial activi- the United States through its banking operations in Canada. ties through more than 3,000 offices in 65 countries. HSBC, Bank also has provided the Board with the information the main subsidiary bank of Holdings, operates branches in necessary to assess the application through submissions New York, New York; Chicago, Illinois; Portland, Oregon; that address the relevant issues. and Seattle, Washington; and representative offices in Dal- Regulation K provides that a foreign bank will be conlas and Houston, Texas. Holdings also directly owns all the sidered to be subject to comprehensive supervision or outstanding shares of Midland Bank pic, London, England, regulation on a consolidated basis if the Board determines which operates a branch in New York, New York, and, that the bank is supervised and regulated in such a manner through HSBC Americas, Inc., a U.S. bank holding com- that its home country supervisor receives sufficient inforpany, owns Marine Midland Bank, Buffalo, New York.2 mation on the foreign bank's worldwide operations, includ- Holdings also engages through subsidiaries in other per- ing the relationship of the foreign bank to any affiliate, to missible nonbanking activities in the United States and assess the overall financial condition of the foreign bank abroad. and its compliance with law and regulation (12 C.F.R. HSBC's branches in Portland and Seattle (the "Branch- 211.24(c)(1)).4 es") are subject to the grandfather provisions of the IBA. The Board previously determined that other Canadian Bank proposes to establish branches in Portland and Seat- banking organizations are subject to comprehensive, contle by acquiring a portion of the assets and liabilities of the solidated supervision by their home country supervisor, the Branches.3 The proposed transfer of HSBC's branches in Office of the Superintendent of Financial Institutions Portland and Seattle to Bank is part of a continuing effort ("OSFI"), in connection with their applications to estabby Holdings to reorganize its commercial banking opera- lish U.S. offices.5 In this case, the Board has determined tions in North America. Bank proposes to acquire HSBC's that Bank is supervised on the same terms and conditions branch operations in the Pacific Northwest to complement as these other Canadian banks. In addition, with respect to Bank's existing business conducted from its offices in HSBC and its various banking and nonbanking affiliates, Canada. Bank's proposed Portland and Seattle branches would engage in traditional commercial banking functions 4. In assessing this standard, the Board considers, among other and would market their services to U.S. companies, includfactors, the extent to which the home country supervisors: ing U.S. subsidiaries of Canadian companies, and to non- (i) Ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide; (ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit reports, or otherwise; 1. All financial data are as of April 30, 1996. (iii) Obtain information on the dealings with and relationship 2. Holdings also owns indirectly 40 percent of the total equity of between the bank and its affiliates, both foreign and domestic; Wells Fargo HSBC Trade Bank, N.A., San Francisco, California (iv) Receive from the bank financial reports that are consolidated ("Trade Bank"), a bank operated as a joint venture with Wells Fargo on a worldwide basis, or comparable information that permits & Company, San Francisco, California. See Wells Fargo & Company, analysis of the bank's financial condition on a worldwide consol- HSBC Holdings pic, HSBC Holdings BV, Marine Midland Bank, Inc., idated basis; and 81 Federal Reserve Bulletin 1037 (1995) (the "Trade Bank Order"). (v) Evaluate prudential standards, such as capital adequacy and 3. Bank would acquire approximately 80 percent of the assets and risk asset exposure, on a worldwide basis. liabilities of HSBC's Seattle branch, and approximately 20 percent of These are indicia of comprehensive, consolidated supervision. No the assets and liabilities of HSBC's Portland branch. The remaining single factor is essential and other elements may inform the Board's assets and liabilities of the Branches, consisting of the trade finance determination. business of the Branches, have been transferred to the Trade Bank. 5. See Bank of Montreal, 80 Federal Reserve Bulletin 925 1994); Upon completion of these transactions, HSBC would retain a repre- National Bank of Canada, 82 Federal Reserve Bulletin 769 (1996); sentative office in Seattle, but would no longer have an office in and The Toronto-Dominion Bank, 82 Federal Reserve Bulletin 1053 Portland. (1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 53 the Board previously determined that HSBC is subject to operate branches in those locations. Section 5 of the IBA comprehensive, consolidated supervision, and the Board governs the interstate branching operations of foreign has noted that there has been no material change in the banks. Section 5(b) provides that, notwithstanding the other nature of its supervision since that time.6 Based on all the restrictions of the IBA on interstate branching by foreign facts of record, the Board has determined that Bank is banks, a "foreign bank" may establish or operate outside subject to comprehensive supervision or regulation on a its home state any state-licensed branch operating on consolidated basis by its home country supervisor. July 27, 1978. 12 U.S.C. § 3103(b). The Branches each The Board has taken into account the additional stan- were operating on that date, and HSBC therefore is entitled dards set forth in section 7 of the IBA and Regulation K to operate them on a grandfathered basis. (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). The IBA defines a "foreign bank" to include affiliates of The OSFI, which is Bank's primary supervisor, has con- a foreign bank. 12 U.S.C. § 3101(7). For purposes of the sented to the establishment of the proposed branches. IBA's home state requirements, moreover, the Board treats Canada is a signatory to the Basle risk-based capital a foreign banking group as a single foreign bank, regardstandards, and Canadian risk-based capital standards meet less of how many foreign banks are within the group.8 In those established by the Basle Capital Accord. Bank's this case, allowing Bank to assume the operation of capital is in excess of the minimum levels that would be HSBC's grandfathered branches would be consistent with required by the Basle Capital Accord and is considered the purposes of section 5 because it would not allow equivalent to capital that would be required of a U.S. Holdings and the group of banks and companies it controls banking organization. Managerial and other financial re- (the "HSBC Group") to extend its network of interstate sources of Bank also are considered consistent with ap- branches beyond those in operation on July 27, 1978.9 As proval, and Bank appears to have the experience and noted, HSBC will no longer operate branches in Portland capacity to support the proposed branches. Bank has estab- and Seattle after the completion of the proposed transaclished controls and procedures for the proposed branches tions. In this case, the state banking authorities of Oregon to ensure compliance with U.S. law, as well as controls and and Washington also have approved the proposed acquisiprocedures for its other operations. tion of the Branches and their operation by Bank. Accordingly, the Board has determined that Bank should be al- The Board has reviewed the restrictions on disclosure in lowed to acquire the Branches and to operate them on a relevant jurisdictions in which Bank operates and has comgrandfathered basis notwithstanding their location outside municated with relevant government authorities about ac- Bank's home state, provided that HSBC terminates its own cess to information. Bank and Holdings have committed to branch operations at such locations. make available to the Board such information on the operations of Bank, Holdings and any of their affiliates that the On the basis of all the facts of record, and subject to the Board deems necessary to determine and enforce compli- commitments made by Bank and Holdings, as well as the ance with the IBA, the Bank Holding Company Act of terms and conditions set forth in this order, the Board has 1956, as amended, and other applicable federal law. To the determined that Bank's application to establish the proextent that the provision of such information is prohibited posed state-licensed branches should be, and hereby is, or impeded by law, Bank and Holdings have committed to approved. Should any restrictions on access to information cooperate with the Board to obtain any necessary consents on the operations or activities of Bank, Holdings, or any of or waivers that might be required from third parties in their affiliates subsequently interfere with the Board's abilconnection with disclosure of certain information. In addi- ity to determine the compliance by Bank, Holdings or their tion, subject to certain conditions, the OSFI and the Bank affiliates with applicable federal statutes, the Board may of England may share information on Bank's and the require termination of any of Bank's or its affiliates' direct HSBC Group's operations, respectively, with other super- or indirect activities in the United States. Approval of this visors, including the Board. In light of these commitments application also is specifically conditioned on compliance and other facts of record, and subject to the condition by Bank and Holdings with all commitments made in described below, the Board concludes that Bank and Hold- connection with this application and with the conditions in ings have provided adequate assurances of access to any this order.10 The commitments and conditions referred to necessary information the Board may request. above are conditions imposed in writing by the Board in Bank's home state for purposes of the IBA is New connection with its decision, and may be enforced in York.7 Bank proposes to establish branches in Portland and Seattle, outside its home state, in reliance on the grandfa- 8. 12 C.F.R. 211.22(c). ther rights of its affiliate bank, HSBC, to maintain and 9. See Board Letter of March 2, 1981. 10. The Board's authority to approve the establishment of the proposed branches parallels the continuing authority of the states of 6. Trade Bank Order at 1039; The Hongkong and Shanghai Banking Oregon and Washington to license offices of a foreign bank. The Corporation Limited, 81 Federal Reserve Bulletin 902 (1995). Board's approval of this application does not supplant the authority of 7. For purposes of the IBA, the home state of HSBC is New York. the State of Oregon, and its agent, the Oregon Department of Con- Under the Board's Regulation K, foreign banks which are majority- sumer and Business Services, or the State of Washington, and its owned by the same company are required to have the same home agent, the Washington Department of Financial Institutions, to license state. 12 C.F.R. 211.22(c). As a result of their common ownership by the proposed branches of Bank in accordance with any terms or Holdings, Bank and HSBC both have New York as their home state. conditions that either state may impose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • January 1997 proceedings under 12 U.S.C. § 1818 or 12 U.S.C. § 1847 bank applicant engages directly in the business of banking against Bank, Holdings, their offices, and their affiliates. outside of the United States and has furnished to the Board By order of the Board of Governors, effective Novem- the information it needs to assess the application adeber 27, 1996. quately. The Board also generally must determine whether the foreign bank is subject to comprehensive supervision Voting for this action: Chairman Greenspan and Governors Kelley, or regulation on a consolidated basis by its home country Lindsey, Phillips, Yellen and Meyer. Absent and not voting: Vice supervisor (12 U.S.C. § 3105(d)(2) and (6); 12 C.F.R. Chair Rivlin. 211.24(c)(1)). The Board may also take into account the additional standards set forth in the IBA (12 U.S.C. JENNIFER J. JOHNSON § 3105(d)(3)-(4)) and Regulation K (12 C.F.R. 211.24(c)). Deputy Secretary of the Board Bank engages directly in the business of banking outside the United States through its banking operations in Japan The Sumitomo Bank, Limited and elsewhere. Bank also has provided the Board with the Osaka, Japan information necessary to assess the application through submissions that address the relevant issues. Order Approving Establishment of a Branch Regulation K provides that a foreign bank will be considered to be subject to comprehensive supervision or The Sumitomo Bank, Limited, Osaka, Japan ("Bank"), a regulation on a consolidated basis if the Board determines foreign bank within the meaning of the International Bankthat the bank is supervised and regulated in such a manner ing Act ("IBA"), has applied under section 7(d) of the IBA that its home country supervisor receives sufficient infor- (12 U.S.C. § 3105(d)) to establish a state-licensed branch mation on the foreign bank's worldwide operations, includin New York, New York. The Foreign Bank Supervision ing the relationship of the foreign bank to any affiliate, to Enhancement Act of 1991, which amended the IBA, proassess the overall financial condition of the foreign bank vides that a foreign bank must obtain the approval of the and its compliance with law and regulation (12 C.F.R. Board to establish a branch in the United States. 211.24(c)(1)).3 Notice of the application, affording interested persons an In this case, with respect to the issue of supervision by opportunity to submit comments, has been published in a home country authorities, the Board previously determined newspaper of general circulation in New York, New York that Bank is subject to comprehensive, consolidated home CThe New York Post, July 19, 1996). The time for filing country supervision and there has been no material change comments has expired, and all comments have been conin the nature of its supervision since that time.4 sidered. The Board has taken into account the additional stan- Bank, with total consolidated assets equivalent to apdards set forth in section 7 of the IBA and Regulation K proximately $528 billion,1 is the fourth largest banking (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). organization in Japan and the fourth largest banking organi- In this regard, the Japanese Ministry of Finance ("MOF") zation in the world. In the United States, Bank operates has consented to the establishment of the proposed statesubsidiary banks in San Francisco, California, and Honolicensed limited branch. lulu, Hawaii; branches in Los Angeles and San Francisco, Japan is a signatory to the Basle risk-based capital California, Chicago, Illinois, and New York, New York; standards, and Japanese risk-based capital standards meet agencies in Atlanta, Georgia, and Houston, Texas; and those established by the Basle Capital Accord. Bank's representative offices at fifteen locations around the councapital is in excess of the minimum levels that would be try. Bank also engages directly and through subsidiaries in other permissible nonbanking activities in the United States and abroad. 3. In assessing this standard, the Board considers, among other Bank proposes to consolidate the activities of its New factors, the extent to which the home country supervisors: York representative office and its regional administrative (i) Ensure that the bank has adequate procedures for monitoring office in a state-licensed branch. The branch would limit its and controlling its activities worldwide; deposit-taking activities to those that are incidental to (ii) Obtain information on the condition of the bank and its international or foreign business ("limited branch").2 subsidiaries and offices through regular examination reports, audit reports, or otherwise; In order to approve an application by a foreign bank to (iii) Obtain information on the dealings with and relationship establish a branch in the United States, the IBA and Regu- between the bank and its affiliates, both foreign and domestic; lation K require the Board to determine that the foreign (iv) Receive from the bank financial reports that are consolidated on a worldwide basis, or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis; and 1. All financial data are as of March 31,1996. (v) Evaluate prudential standards, such as capital adequacy and 2. Bank's home state under the IBA and Regulation K is California. risk asset exposure, on a worldwide basis. Because Bank's proposed New York branch is outside Bank's home These are indicia of comprehensive, consolidated supervision. No state, under the IBA it cannot engage in full service deposit activities single factor is essential and other elements may inform the Board's and must limit its deposit taking to that of a corporation organized determination. under section 25A of the Federal Reserve Act (the Edge Act) 4. The Sumitomo Bank, Limited, 82 Federal Reserve Bulletin 369 (12 U.S.C. § 611 etseq.). (1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 55 required by the Basle Capital Accord and is considered conditions set forth in this order, the Board has determined equivalent to capital that would be required of a U.S. that Bank's application to establish a state-licensed limited banking organization. Managerial and other financial re- branch should be, and hereby is, approved. Should any sources of Bank also are considered consistent with ap- restrictions on access to information on the operations or proval, and Bank appears to have the experience and activities of Bank or any of its affiliates subsequently capacity to support the proposed limited branch. Bank has interfere with the Board's ability to determine the compliestablished controls and procedures for the proposed lim- ance by Bank or its affiliates with applicable federal statited branch in order to ensure compliance with U.S. law, as utes, the Board may require termination of any of Bank's well as controls and procedures for its worldwide opera- or its affiliates' direct or indirect activities in the United tions generally. States. Approval of this application is also specifically Finally, the Board has reviewed the restrictions on dis- conditioned on compliance by Bank with all commitments closure in relevant jurisdictions in which Bank operates made in connection with this application and with the and has communicated with relevant government authori- conditions in this order.5 The commitments and conditions ties about access to information. Bank has committed to referred to above are conditions imposed in writing by the make available to the Board such information on the oper- Board in connection with its decision, and may be enforced ations of Bank and any of its affiliates that the Board deems in proceedings under 12 U.S.C. § 1818 or 12 U.S.C. necessary to determine and enforce compliance with the § 1847 against Bank, its offices, and its affiliates. IBA, the Bank Holding Company Act of 1956, as amended, By order of the Board of Governors, effective Novemand other applicable federal law. To the extent that the ber 6, 1996. provision of such information is prohibited or impeded by law, Bank has committed to cooperate with the Board to Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and obtain any necessary consents or waivers that might be Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. required from third parties in connection with disclosure of certain information. In addition, subject to certain condi- JENNIFER J. JOHNSON Deputy Secretary of the Board tions, the MOF and the Bank of Japan may share information on Bank's operations with other supervisors, including the Board. In light of these commitments and other facts of record, and subject to the condition described below, the 5. The Board's authority to approve the establishment of the pro- Board concludes that Bank has provided adequate assur- posed branch parallels the continuing authority of the State of New ances of access to any necessary information the Board York to license offices of a foreign bank. The Board's approval of this may request. application does not supplant the authority of the State of New York, and its agent, the New York State Banking Department, to license the On the basis of all the facts of record, and subject to the proposed branch of Bank in accordance with any terms or conditions commitments made by Bank, as well as the terms and that the State of New York may impose. INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (JULY 1, 1996-SEPTEMBER 30, 1996) Bulletin Volume and Applicant Merged or Acquired Bank or Activity Date of Approval Page Banc One Corporation, Electronic Payment Services, Inc., July 1, 1996 82, 848 Columbus, Ohio Wilmington, Delaware CoreStates Financial Corp, Philadelphia, Pennsylvania PNC Bank Corp., Pittsburgh, Pennsylvania KeyCorp, Cleveland, Ohio National City Corporation, Cleveland, Ohio Banco Santander, S.A., Banco Central Hispano Puerto Rico, July 31, 1996 82, 833 Madrid, Spain Hato Rey, Puerto Rico Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1997 Index of Orders—Continued Bulletin Volume and Applicant Merged or Acquired Bank or Activity Date of Approval Page Bank of Boston Corporation, BayBanks, Inc., July 10, 1996 82, 856 Boston, Massachusetts Boston, Massachusetts BayBank, N.A., Boston, Massachusetts BayBank NH, National Association, Derry, New Hampshire Cambridge Bancorp, Cambridge Investment Services of September 30, 1996 82, 1040 Cambridge, Massachusetts New Hampshire, Inc., Concord, New Hampshire CBG Compagnie Bancaire Geneve, To establish a representative office in July 29, 1996 82, 862 Geneva, Switzerland Miami, Florida The Chase Manhattan Corporation, Wells Fargo Bank, N.A., September 30, 1996 82, 1041 New York, New York San Francisco, California Mellon Bank Corporation, Pittsburgh, Pennsylvania ChaseMellon Shareholder Services, L.L.C., Ridgefield Park, New Jersey China Construction Bank, To establish a representative office in September 23, 1996 82, 1053 Beijing, People's Republic of China New York, New York CNB Financial Corp., Central Asset Management, Inc., August 12, 1996 82, 952 Canajoharie, New York Canajoharie, New York Community Bank of Nevada, To establish a branch at 2887 South August 28, 1996 82, 966 Las Vegas, Nevada Maryland Parkway, Las Vegas, Nevada Dresdner Bank AG, Kleinwort Benson Group pic, July 15, 1996 82, 850 Frankfurt, Germany London, England First Merchants Corporation, Randolph County Bancorp, August 28, 1996 82, 942 Muncie, Indiana Winchester, Indiana Randolph County Bank, Winchester, Indiana First Southern Bancorp, Lincoln Financial Bancorp, Inc., July 22, 1996 82, 854 Inc., Stanford, Kentucky Stanford, Kentucky Lincoln Federal Savings Bank, Stanford, Kentucky First State Bancshares of Blakely, Inc., First Southwest Bancorp, Inc., August 26, 1996 82, 953 Blakely, Georgia Donalsonville, Georgia First Federal Savings Bank of Southwest Georgia, Donalsonville, Georgia Grupo Financiero Banamex Accival, S.A. Banco National de Mexico, S.A., September 9, 1996 82, 1047 de C.V., Mexico City, Mexico Mexico City, Mexico Banamex USA Bancorp, Los Angeles, California California Commerce Bank, Los Angeles, California Hibernia Corporation, CM Bank Holding Company, July 31, 1996 82, 838 New Orleans, Louisiana Lake Charles, Louisiana Calcasieu Marine National Bank of Lake Charles, Lake Charles, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 57 Index of Orders—Continued Bulletin Volume and Applicant Merged or Acquired Bank or Activity Date of Approval Page Hibernia Corporation, St. Bernard Bank & Trust Co., July 31, 1996 82, 842 New Orleans, Louisiana Arabi, Louisiana InterWest Bancorp, Inc., Central Bancorporation, August 12, 1996 82, 944 Oak Harbor, Washington Wenatchee, Washington Central Washington Bank, Wenatchee, Washington North Central Washington Bank, Omak, Washington KeyCorp, Carleton, McCreary, Holmes & Co., August 14, 1996 82, 958 Cleveland, Ohio Cleveland, Ohio Key Capital Markets, Inc., Cleveland, Ohio KeyCorp, Key Bank, August 5, 1996 82, 946 Cleveland, Ohio Bedford, New Hampshire Key Bancorp of New Hampshire, Inc., Bedford, New Hampshire Korea Development Bank, To establish a state-licensed branch in August 23, 1996 82, 969 Seoul, Korea New York, New York National Westminster Bank Pic, Greenwich Capital Holdings, Inc., September 19, 1996 82, 1044 London, England Greenwich, Connecticut NVE Bancorp, MHC, NVE Savings Bank, July 15, 1996 82, 843 Englewood, New Jersey Englewood, New Jersey NVE Bancorp, Inc., Englewood, New Jersey Perryton Bancshares, Inc., Perryton National Bank, July 22, 1996 82, 844 Perryton, Texas Perryton, Texas Shinhan Bank, Marine National Bank, August 19, 1996 82, 951 Seoul, Korea Irvine, California Texas Financial Bancorporation, Inc., Riverside National Bank, July 22, 1996 82, 845 Minneapolis, Minnesota Grand Prairie, Texas First Bancorp, Inc., Denton, Texas First Delaware Bancorp, Inc., Dover, Delaware The Toronto-Dominion Bank, Waterhouse Investor Services, Inc., September 30, 1996 82, 1052 Toronto, Canada New York, New York Waterhouse National Bank, White Plains, New York Union Planters Corporation, Leader Financial Corporation, August 5, 1996 82, 959 Memphis, Tennessee Memphis, Tennessee Leader Federal Bank of Savings, Memphis, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Federal Reserve Bulletin • January 1997 Index of Orders—Continued Bulletin Volume and Applicant Merged or Acquired Bank or Activity Date of Approval Page Valley View Bancshares, Inc., Industrial Bancshares, Inc., September 16, 1996 82, 1036 Overland Park, Kansas Kansas City, Kansas Industrial State Bank, Kansas City, Kansas International Bancshares, Inc., Gladstone, Missouri First Bank of Missouri, Gladstone, Missouri Mission Bancshares, Inc., Mission, Kansas The Mission Bank, Mission, Kansas One Security, Inc., Kansas City, Kansas Security Bank, Kansas City, Kansas APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Applicant(s) Bank(s) Effective Date U.S. Bancorp, Sun Capital Bancorp, November 25, 1996 Portland, Oregon St. George, Utah Sun Capital Bank, St. George, Utah Section 4 Applicant(s) Nonbanking Activity/Company Effective Date Bank of Boston Corporation, To engage in additional data processing November 21, 1996 Boston, Massachusetts activities through NYCE Corporation, Fleet Financial Group, Inc., Woodcliff Lake, New Jersey Boston, Massachusetts The Governor and Company of the Bank of Ireland, Dublin, Ireland The Royal Bank of Scotland Group pic, Edinburgh, United Kingdom The Royal Bank of Scotland pic, Edinburgh, United Kingdom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 59 Section 4—Continued Applicant(s) Nonbanking Activity/Company Effective Date Citizens Financial Group, Inc., Providence, Rhode Island The Bank of New York Company, Inc., New York, New York The Chase Manhattan Corporation, New York, New York Citicorp, New York, New York HSBC Holdings PLC, London, England HSBC Holdings BV, Amsterdam, The Netherlands HSBC Americas, Inc., Buffalo, New York National Westminster Bank, PLC, London, England First Union Corporation, Charlotte, North Carolina First National of Nebraska, Inc., Omaha, Professional Career Services, Inc., November 1, 1996 Nebraska Omaha, Nebraska First National of Colorado, Inc., Omaha, Nebraska 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 ADBANC, Inc., The First State Bank, Kansas City November 15, 1996 Ogallala, Nebraska Lodgepole, Nebraska BancFirst Corporation, Peoples State Bank, Kansas City November 7, 1996 Oklahoma City, Oklahoma Tulsa, Oklahoma Berco, Inc., Front Range Bancshares, Kansas City November 15, 1996 Bennington, Kansas Littleton, Colorado Bluestem Development Corporation, Joy Development Corporation, Chicago October 24, 1996 Joy, Illinois Davenport, Iowa Joy State Bank, Joy, Illinois Bridge View Bancorp, Bridge View Bank, New York November 20, 1996 Englewood Cliffs, New Jersey Englewood Cliffs, New Jersey Carlinville National Bank Shares, Lincoln Trail Bancshares, Inc., St. Louis November 8, 1996 Inc., Taylorville, Illinois Carlinville, Illinois Palmer State Bank, Taylorville, Illinois Century Bancorp, Inc., Home Savings, Inc., SSB, Richmond November 12, 1996 Thomasville, North Carolina Thomasville, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 Federal Reserve Bulletin • January 1997 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date City Holding Company, The Old National Bank of Huntington, Richmond November 15, 1996 Charleston, West Virginia Huntington, West Virginia Crestar Financial Corporation, Citizens Bancorp, Richmond November 21, 1996 Richmond, Virginia Laurel, Maryland Dent Bancshares, Inc., Farmers State Bank, Minneapolis October 28, 1996 Dent, Minnesota Dent, Minnesota Destin Bancshares, Inc., Destin Bank, Atlanta November 8, 1996 Destin, Florida Destin, Florida First Baird Bancshares, Inc., First Munday Bancshares, Inc., Dallas November 6, 1996 Baird, Texas Munday, Texas First Baird Bancshares of Delaware, First Munday Bancshares of Delaware, Inc., Inc., Dover, Delaware Munday, Texas Weatherford Bancshares, Inc., First National Bank in Munday, Weatherford, Texas Munday, Texas First Weatherford Bancshares, Inc., Weatherford, Texas FirstBank Holding Company of FirstBank Holding Company of Kansas City November 15, 1996 Colorado Employee Stock Colorado, Ownership Plan, Lakewood, Colorado Lakewood, Colorado First Commerce Bancorp, Inc., Nubanc Corp., San Francisco October 22, 1996 Logan, Utah Logan, Utah First Financial Bancorp, Farmers State Bancorp, Cleveland November 8, 1996 Hamilton, Ohio Liberty, Indiana First Financial Bancorp, Hastings Financial Corporation, Cleveland November 14, 1996 Hamilton, Ohio Hastings, Michigan National Bank of Hastings, Hastings, Michigan First Manistique Corporation, UP Financial, Inc., Minneapolis November 5, 1996 Manistique, Michigan Ontonagon, Michigan First State Bancorp, Inc., First Bancorporation, Inc., Minneapolis November 4, 1996 La Crosse, Wisconsin Sparta, Wisconsin Glacier Bancorp, Inc., Missoula Bancshares, Inc., Minneapolis November 13, 1996 Kalispell, Montana Missoula, Montana G.R. Bancorp, LTD., The First National Bank of Grand Chicago November 6, 1996 Grand Ridge, Illinois Ridge, Grand Ridge, Illinois Independence Bancshares, Inc., Southeast Security Bank, Chicago November 18, 1996 Independence, Iowa Mediapolis, Iowa Iroquois Bancorp, Inc., Cayuga Savings Bank, New York October 30, 1996 Auburn, New York Auburn, New York Cayuga Bank, Auburn, New York MarTex Bancshares, Inc., Heritage Texas Group, Inc., Dallas October 30, 1996 Marshall, Texas Pittsburgh, Texas MNB Bancshares, Inc., The Malvern National Interim Bank, St. Louis October 29, 1996 Malvern, Arkansas Malvern, Arkansas First National Interim Bank of Sheridan, Sheridan, Arkansas Northern Plains Investment, Inc., Stutsman County State Bank, Minneapolis November 7, 1996 Jamestown, North Dakota Jamestown, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 61 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Norwest Corporation, West Columbia National Bank, Minneapolis November 19, 1996 Minneapolis, Minnesota West Columbia, Texas Oak Park Bancshares, Inc., Hillcrest Bancshares, Inc., Kansas City November 6, 1996 Overland Park, Kansas Kansas City, Missouri The Olathe Bank, Olathe, Kansas Old Kent Financial Corporation, Seaway Financial Corporation, Chicago November 20, 1996 Grand Rapids, Michigan St. Clair, Michigan Commercial and Savings Bank of St. Clair County, St. Clair, Michigan Algonac Savings Bank, Algonac, Michigan Owenton Bancorp, Inc. Employee Owenton Bancorp, Inc., St. Louis November 4, 1996 Stock Ownership Trust, Owenton, Kentucky Owenton, Kentucky Pacific Capital Bancorp, South Valley Bancorporation, San Francisco October 25, 1996 Salinas, California Morgan Hill, California South Valley National Bank, Morgan Hill, California Paradigm Bancorporation, Inc., Paradigm Delaware Bancorporation, Dallas November 6, 1996 Houston, Texas Inc., Dover, Delaware Woodcreek Bank, Houston, Texas Paradigm Delaware Bancorporation, Woodcreek Bank, Dallas November 6, 1996 Inc., Houston, Texas Dover, Delaware Sanger Bancshares, Inc., Sanger Intermediate Holding Company, Dallas November 7, 1996 Sanger, Texas Wilmington, Delaware Sanger Bank, Sanger, Texas Sanger Intermediate Holding Sanger Bank, Dallas November 7, 1996 Company, Inc., Sanger, Texas Wilmington, Delaware The Sankovitz Family Limited Frankson Investment Corporation, Minneapolis November 7, 1996 Partnership, Waseca, Minnesota Waseca, Minnesota Smoky Mountain Bancorp, Inc., BankFirst, Atlanta November 8, 1996 Gatlinburg, Tennessee Knoxville, Tennessee TCB Delaware, Inc., Brady National Bank, Dallas October 25, 1996 Dover, Delaware Brady, Texas TDI Financial Corporation, Security Chicago Corporation, Chicago October 25, 1996 Chicago, Illinois Chicago, Illinois First Security Bank of Chicago, Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Federal Reserve Bulletin • January 1997 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date TeamBanc, Inc., Crown Bancshares, Inc., Kansas City November 15, 1996 Paola, Kansas Bellevue, Nebraska TeamBanc, Inc. Employees' Stock Ownership Plan, Paola, Kansas TeamBanc Acquisition Subsidiary, Inc., Paola, Kansas Texas Country Bancshares, Inc., The First National Bank of Ballinger, Dallas October 25, 1996 Brady, Texas Ballinger, Texas TCB Delaware, Inc., Dover, Delaware United Community Bancshares, Inc. Park Financial Corporation, Minneapolis November 19, 1996 Eagan, Minnesota St. Louis Park, Minnesota Upson Bankshares, Inc., Bank of Upson, Atlanta October 25, 1996 Thomaston, Georgia Thomaston, Georgia Wilson Bank Holding Company, Community Bank of Smith County, Atlanta November 8, 1996 Lebanon, Tennessee Carthage, Tennessee Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Anita Bancorporation, Rolling Hills Insurance Agency, L.C., Chicago November 19, 1996 Newton, Iowa Atlantic, Iowa Bancommunity Service Corporation, Security Shares, Inc., Minneapolis November 7, 1996 St. Peter, Minnesota St. Peter, Minnesota Bank Austria AG, Bank Austria Mortgage Corp., New York October 31, 1996 Vienna, Austria New York, New York Capitol Bancorporation, Inc., To engage de novo in consumer lending Minneapolis November 14, 1996 Britton, South Dakota activities Fulda Bancorporation, Inc., Britton, South Dakota CCB Financial Corporation, CCB Services, Inc., Richmond November 1, 1996 Durham, North Carolina Durham, North Carolina The Colonial BancGroup, Inc., First Family Financial Corporation, Atlanta November 5, 1996 Montgomery, Alabama Eustis, Florida First Family Bank, Eustis, Florida Comerica Incorporated, Bankers Motor Acceptance Corporation, Chicago October 24, 1996 Detroit, Michigan Newport Beach, California Commonwealth Commercial The Bank of Crittenden, Cleveland October 18, 1996 Corporation, Crittenden, Kentucky Crittenden, Kentucky Fulton Financial Corporation, To engage in community development Philadelphia November 19, 1996 Lancaster, Pennsylvania activities through an investment of $1.2 million in a limited partnership Klein Bancorporation, Inc., To engage de novo in providing data Minneapolis October 30, 1996 Chaska, Minnesota processing services to commonly-owned insurance agencies MainS treet BankGroup MainStreet Trust Company, N.A., Richmond November 19, 1996 Incorporated, Martinsville, Virginia Martinsville, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 63 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Norwest Corporation, Central Federal Mortgage Company, Minneapolis November 5, 1996 Minneapolis, Minnesota State College, Pennsylvania Pioneer Bankcorp, Inc., Development Investments, Inc., Atlanta October 25, 1996 Clewiston, Florida Clewiston, Florida Societe Generale, FIMAT Futures USA, Inc., New York, New York November 1, 1996 Paris, France New York Stichting Prioriteit ABN AMRO Chevron Credit Bank, National Chicago November 8, 1996 Holding, Association, Amsterdam, The Netherlands Murray City, Utah 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 LeasePlan North America, Inc., Chicago, Illinois Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Prime Newco, Inc., First Sterling Bancorp, Inc., Philadelphia November 15, 1996 Philadelphia, Pennsylvania Devon, Pennsylvania 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 Aliant Bank, Elmore County Bank, Atlanta November 15, 1996 Alexander City, Alabama Wetumpka, Alabama First Montgomery Bank, Montgomery, Alabama Fifth Third Bank of Kentucky, Inc. Fifth Third Savings Bank of Western St. Louis November 1, 1996 Louisville, Kentucky Kentucky, F.S.B., Mayfield, Kentucky The Fifth Third Bank of Fifth Third Savings Bank of Northern Cleveland November 1, 1996 Northeastern Ohio, Ohio, F.S.B., Cleveland, Ohio Kent, Ohio The Fifth Third Bank of Northern Fifth Third Savings Bank of Northern Cleveland November 1, 1996 Kentucky, Inc., Kentucky, F.S.B., Florence, Kentucky Hebron, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • January 1997 Applications Approved Under Bank Merger Act—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Kent City State Bank, The Grant State Bank, Chicago November 8, 1996 Kent City, Michigan Grant, Michigan Texas Bank, Bank of America Texas, N.A. Dallas November 20, 1996 Weatherford, Texas Irving, Texas PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Leuthe v. Board of Governors, No. 96-5725 (E.D. Pa., filed Federal Reserve Banks in which the Board of Governors is not August 16, 1996). Action against the Board and other named a party. Federal banking agencies challenging the constitutionality of the Office of Financial Institution Adjudication. Artis v. Greenspan, No. 1:96CV02619 (D.D.C., filed Novem- Long v. Board of Governors, No. 96-9526 (10th Cir., filed ber 19, 1996). Employment discrimination action. July 31, 1996). Petition for review of Board order dated July 2, 1996, assessing a civil money penalty and cease and First Baird Bancshares, Inc. v. Board of Governors, No. desist order for violations of the Bank Holding Company 96-1426 (D.C. Cir., filed November 18, 1996). Petition for Act. The Board's brief in opposition to the petition was review of Board order dated November 6, 1996, approving filed November 27, 1996. applications of First Commercial Corporation, Little Rock, Arkansas, Arvest Bank Group, Inc., Bentonville, Arkansas, Esformes v. Board of Governors, No. 96-1916 (S.D. Fla., filed and TRH Bank Group, Inc., Norman, Oklahoma, to acquire July 12, 1996). Complaint challenging Board denial of all the shares of The Oklahoma National Bank of Duncan, administrative request for confidential supervisory informa- Duncan, Oklahoma. On November 20, 1996, the Court tion. Plaintiffs' motion for an expedited hearing was denied denied petitioners' motion for a stay. on August 1, 1996. On September 20, 1996, the Board filed a motion to dismiss or for summary judgment. On Octo- Snyder v. Board of Governors, No. 96-1403 (D.C. Cir., filed ber 8, the plaintiffs moved for voluntary dismissal of the October 23, 1996). Petition for review of Board order dated action. September 11, 1996, prohibiting John K. Snyder and Donald E. Hedrick from further participation in the banking Board of Governors v. Interamericas Investments, Ltd., No. industry. On November 21, 1996, the Board moved to 96-7108 (D.C. Cir., filed June 14, 1996). Appeal of district dismiss the petition. court ruling granting, in part, the Board's application to enforce an adminstrative investigatory subpoena for docu- American Bankers Insurance Group, Inc. v. Board of Gover- ments and testimony. On November 15, 1996, the court nors, No. 96-CV-2383-EGS (D.D.C., filed October 16, dismissed the action on appellants' motion. 1996). Action seeking declaratory and injunctive relief invalidating a new regulation issued by the Board under the Interamericas Investments, Ltd. v. Board of Governors, No. Truth in Lending Act relating to treatment of fees for debt 96-60326 (5th Cir., filed May 8, 1996). Petition for review cancellation agreements. On October 18, 1996, the district of order imposing civil money penalties and cease and court denied plaintiffs' motion for a temporary restraining desist order in enforcement case. Petitioners' brief was filed order, and set a hearing on their motion for preliminary and on July 26, 1996, and the Board's brief was filed on permanent injunctive relief for December 17, 1996. September 27, 1996. On August 20, petitioners' motion for a stay of the Board's orders pending judicial review was Clifford v. Board of Governors, No. 96-1342 (D.C. Cir., filed denied by the Court of Appeals. September 17, 1996). Petition for review of Board order Kuntz v. Board of Governors, No. 96-1137 (D.C. Cir., filed dated August 21, 1996, denying petitioners' motion to April 25, 1996). Petition for review of a Board order dated dismiss enforcement action against them. On November 4, March 25, 1996, approving an application by CoreStates 1996, the Board filed a motion to dismiss the petition. Financial Corp., Philadelphia, Pennsylvania, to acquire Me- Artis v. Greenspan, No. 96-CV-02105 (D. D.C., filed Septem- ridian Bancorp, Inc., Reading, Pennsylvania. The Board's ber 11, 1996). Class complaint alleging race discrimination motion to dismiss was filed on June 3, 1996. On Octoin employment. ber 24, 1996, the court dismissed the action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 65 Kuntz v. Board of Governors, No. 96-1079 (D.C. Cir., filed and the acquisition of U.S. Trust by Chase Manhattan March 7, 1996). Petition for review of a Board order dated Corporation, New York, New York. On September 12, February 7, 1996, approving applications by The Fifth 1995, the court denied petitioners' motion for an emergency Third Bank, Cincinnati, Ohio, and The Firth Third Bank of stay of the Board's orders. The Board's brief was filed on Columbus, Columbus, Ohio, to acquire certain assets and April 16, 1996. assume certain liabilities of 25 branches of NBD Bank, Columbus, Ohio. Petitioner has moved to consolidate the Beckman v. Greenspan, No. 95-35473 (9th Cir., filed May 4, case with Kuntz v. Board of Governors, No. 95-1495. On 1995). Appeal of dismissal of action against Board and April 8, 1996, the Board filed a motion to dismiss the others seeking damages for alleged violations of constituaction. tional and common law rights. The appellants' brief was filed on June 23, 1995; the Board's brief was filed on Henderson v. Board of Governors, No. 96-1054 (D.C. Cir., July 12, 1995. filed February 16, 1996). Petition for review of a Board order dated January 17, 1996, approving the merger of First Money Station, Inc. v. Board of Governors, No. 95-1182 Citizens BancShares, Inc., Raleigh, North Carolina, with (D.C. Cir., filed March 30, 1995). Petition for review of a Allied Bank Capital, Inc., Sanford, North Carolina. Petition- Board order dated March 1, 1995, approving notices by ers' motion for a stay was denied on March 7, 1996. Oral Bank One Corporation, Columbus, Ohio; CoreStates Finanargument on the merits is scheduled for January 17, 1996. cial Corp., Philadelphia, Pennsylvania; PNC Bank Corp., Pittsburgh, Pennsylvania; and KeyCorp, Cleveland, Ohio, to acquire certain data processing assets of National City Research Triangle Institute v. Board of Governors, No. Corporation, Cleveland, Ohio, through a joint venture sub- 1:96CV00102 (M.D.N.C., filed February 12, 1996). Considiary. On April 23, 1996, the court vacated the Board's tract dispute. On May 3, 1996, the Board filed a motion to order. On July 31, 1996, the full court granted the Board's dismiss the action. suggestion for rehearing en banc, and vacated the April 23 panel decision. Inner City Press/Community on the Move v. Board of Governors, No. 96-4008 (2nd Cir., filed January 19, 1996). Peti- In re Subpoena Duces Tecum, Misc. No. 95-06 (D.D.C., filed tion for review of a Board order dated January 5, 1996, January 6, 1995). Action to enforce subpoena seeking preapproving the applications and notices by Chemical Bankdecisional supervisory documents sought in connection with ing Corporation to merge with The Chase Manhattan Coran action by Bank of New England Corporation's trustee in poration, both of New York, New York, and by Chemical bankruptcy against the Federal Deposit Insurance Corpora- Bank to merge with The Chase Manhattan Bank, N.A., both tion. The Board filed its opposition on January 20, 1995. of New York, New York. Petitioners' motion for an emer- Oral argument on the motion was held July 14, 1995. gency stay of the transaction was denied following oral argument on March 26, 1996. The Board's brief on the Board of Governors v. Pharaon, No. 91-CIV-6250 (S.D. New merits was filed July 8, 1996. The case has been consoli- York, filed September 17, 1991). Action to freeze assets of dated for oral argument and decision with Lee v. Board of individual pending administrative adjudication of civil Governors, No. 95-4134 (2d Cir.). money penalty assessment by the Board. On September 17, 1991, the court issued an order temporarily restraining the Menick v. Greenspan, No. 95-CV-01916 (D. D.C., filed Octo- transfer or disposition of the individual's assets. ber 10, 1995). Complaint alleging sex, age, and handicap discrimination in employment. On October 30, 1996, the parties filed a stipulation of dismissal. Kuntz v. Board of Governors, No. 95-1495 (D.C. Cir., filed FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD September 21, 1995). Petition for review of Board order OF GOVERNORS dated August 23, 1995, approving the applications of The Fifth Third Bank, Cincinnati, Ohio, to acquire certain assets Thomas P. Rogers and assume certain liabilities of 12 branches of PNC Bank, New York Branch of The Nippon Credit Bank, Ltd. Ohio, N.A., Cincinnati, Ohio, and to establish certain Tokyo,Japan branches. The Board's motion to dismiss was filed on October 26, 1995. The Federal Reserve Board announced on November 18, 1996, the issuance of an Order to Cease and Desist and of Lee v. Board of Governors, No. 95^134 (2nd Cir., filed Assessment of a Civil Money Penalty against Thomas P. August 22, 1995). Petition for review of Board orders dated Rogers, a former chief foreign exchange trader and July 24, 1995, approving certain steps of a corporate reorga- institution-affiliated party of the New York branch of The nization of U.S. Trust Corporation, New York, New York, Nippon Credit Bank, Ltd., Tokyo, Japan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • January 1997 Edward F. Stempniewicz WRITTEN AGREEMENTS APPROVED BY FEDERAL New York Branch of Bank Austria A.G. RESERVE BANKS Vienna, Austria Arab American Bank New York, New York The Federal Reserve Board announced on November 4, 1996, the issuance of an Order of Prohibition against The Federal Reserve Board announced on November 18, Edward F. Stempniewicz, a former officer and institution- 1996, the execution of a Written Agreement between the affiliated party of the New York Branch of Bank Austria Arab American Bank, New York, New York, and the A.G., Vienna, Austria. Federal Reserve Bank of New York. 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 A27 Federal debt subject to statutory limitation Money Stock and Bank Credit A27 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 A32 Corporate profits and their distribution A33 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 A34 Mortgage markets Monetary and Credit Aggregates A35 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base Consumer Credit A13 Money stock, liquid assets, and debt measures A36 Total outstanding A15 Deposit interest rates and amounts outstanding— A36 Terms commercial and BIF-insured banks A16 Bank debits and deposit turnover Flow of Funds Commercial Banking Institutions— A37 Funds raised in U.S. credit markets A39 Summary of financial transactions Assets and Liabilities A40 Summary of credit market debt outstanding A17 All commercial banks A41 Summary of financial assets and liabilities A18 Domestically chartered commercial banks A19 Large domestically chartered commercial banks A20 Small domestically chartered commercial banks DOMESTIC NONFINANCIAL STATISTICS A21 Foreign-related institutions Selected Measures Financial Markets A42 Nonfinancial business activity— A22 Commercial paper and bankers dollar Selected measures acceptances outstanding A42 Labor force, employment, and unemployment A22 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

A2 Federal Reserve Bulletin • January 1997 DOMESTIC NONFINANCIAL STATISTICS- A57 Claims on foreign countries— CONTINUED Combined domestic offices and foreign branches Selected Measures—Continued Reported by Nonbanking Business Enterprises in the United States A48 Gross domestic product and income A49 Personal income and saving A58 Liabilities to unaffiliated foreigners A59 Claims on unaffiliated foreigners INTERNATIONAL STATISTICS Securities Holdings and Transactions Summary Statistics A60 Foreign transactions in securities A61 Marketable U.S. Treasury bonds and A50 U.S. international transactions—Summary notes—Foreign transactions A51 U.S. foreign trade A51 U.S. reserve assets Interest and Exchange Rates A51 Foreign official assets held at Federal Reserve Banks A61 Discount rates of foreign central banks A52 Selected U.S. liabilities to foreign official A61 Foreign short-term interest rates institutions A62 Foreign exchange rates Reported by Banks in the United States A63 GUIDE TO STATISTICAL RELEASES AND A52 Liabilities to and claims on foreigners SPECIAL TABLES A53 Liabilities to foreigners A64 Pro forma balance sheet and income statements A55 Banks' own claims on foreigners for priced service operations, September 30, 1996 A56 Banks' own and domestic customers' claims on foreigners A56 Banks' own claims on unaffiliated foreigners A66 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 Nonfinancial Statistics • January 1997 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1995 1996 1996r MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Q1 Q2 Q3r June July Aug. Sept. Oct. Reserves of depository institutions2 1 Total -6.9 -7.9 -6.4 -16.4 -2.5 -20.3 -20.9 -21.1 -28.5 2 Required -7.7 -8.5 -5.7 -16.6 -9.1 -18.8 -19.0 -23.3 -28.0 3 Nonborrowed -6.4 -6.5 -7.6 -17.6 -8.3 -20.0 -20.3 -22.0 -26.8 4 Monetary base' 2.7 1.5 2.2r 5.9 5.7 7.6 6.3 4.5 3.5 Concepts of money, liquid assets, and debt4 5 Ml -5.1 -2.7 -.7 -7.0 -.5 -9.1 -9.9 -8.7 -16.7 6 M2 4.1 5.7 3.8 2.7 5.3 1.6 3.7 3.1 3.6 7 M3 4.6 7.1r 5.5r 4.3 5.1 2.8 4.8 7.1 10.3 8 L 6.0 5.0 5.7r 4.8 6.2 3.4 6.5 8.2 n.a. 9 Debt 4.7 5.0 5.6 4.8 5.0 5.7 3.9 3.4 n.a. Nontransaction components 10 In M25 8.4 9.4 5.7 6.8 7.7 6.2 9.4 8.0 11.9 11 In M3 only6 6.8r 12.7r 12.4r 10.7 4.7 7.4 9.2 21.9 35.2 Time and savings deposits Commercial banks 12 Savings, including MMDAs 13.1 22.6 12.7 11.5 12.3 9.6 17.5 10.2 20.3 13 Smalltime7 4.8 2.5 -2.9 3.3 .4 5.4 5.2 4.8 5.4 14 Large time8-9 19.5 8.0 17.6r 16.8 19.3 16.3 10.0 21.4 61.9 Thrift institutions 15 Savings, including MMDAs -2.8 -.3 8.1 -.2 2.9 -.7 -4.9 -1.0 3.9 16 Small time7 4.9 -2.3 -3.2 -.5 -3.1 -2.7 4.1 4.1 6.8 17 Large time8 8.4 6.4 -3.0 8.5 4.8 12.7 9.4 18.8 13.8 Money market mutual funds 18 Retail 16.9 13.3 9.4 13.6 20.1 13.1 14.9 17.4 14.5 19 Institution-only 10.3 27.9 8.7 18.6 29.1 16.8 20.4 25.7 7.3 Repurchase agreements and Eurodollars 20 Repurchase agreements10 -12.7r 3.4r 16.3r -4.2 -52.0 -11.1 -5.6 19.4 18.5 21 Eurodollars10 -6.7 17.0 7.4 -.3 6.2 -17.2 7.5 21.1 56.0 Debt components4 22 Federal 2.3 3.0 4.7 3.8 2.1 6.0 4.5 1.0 n.a. 23 Nonfederal 5.6 5.8r 5.9 5.1 6.1 5.6 3.7 4.2 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 Aug. Sept. Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 425,069 427,377 426,256 426,002 427,723 425,860 424,170 427,910 427,779 U.S. government securities2 2 Bought outright—System account 385,637 387,118 386,942 386,917 387,577 386,255 387,293 387,116 387,020 3 Held under repurchase agreements 3,734 4,540 3,042 4,014 5,298 3,532 2,047 3,945 3,634 Federal agency obligations 4 Bought outright 2,336 2,319 2,289 2,311 2,311 2,309 2,309 2,309 2,288 5 Held under repurchase agreements 899 824 1,434 237 86 1,003 538 1,624 1,782 6 Acceptances 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 17 95 50 15 20 240 16 158 4 8 Seasonal credit 311 310 212 311 323 302 246 213 197 9 Extended credit 0 0 0 0 0 0 0 0 0 10 Float 460 595 706 549 241 579 391 907 1,136 11 Other Federal Reserve assets 31,674 31,577 31,581 31,648 31,867 31,640 31,329 31,638 31,718 12 Gold stock 11,050 11,050 11,049 11,050 11,050 11,050 11,050 11,049 11,049 13 Special drawing rights certificate account 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 14 Treasury currency outstanding 24,669r 24,739r 24,800 24,738r 24,752r 24,766 24,780 24,794 24,808 ABSORBING RESERVE FUNDS 15 Currency in circulation 429,57 lr 431,635r 432,734 431,712r 430,235' 430,398 431,875 433,891 433,263 16 Treasury cash holdings 268 282 287 284 285 287 293 292 281 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,107 6,139 5,064 5,754 7,620 6,815 4,529 4,885 5,414 18 Foreign 186 176 174 173 170 190 168 178 166 19 Service-related balances and adjustments . . 6,360 6,379 6,656 6,288 6,500 6,539 6,481 6,799 6,659 20 Other 311 357 373 366 364 374 370 381 358 21 Other Federal Reserve liabilities and capital , 13,993 14,088 13,883 14,059 14,334 13,921 13,511 13,834 14,139 22 Reserve balances with Federal Reserve Banks' 14,711 13,828r 12,653 12,873 13,734 12,870 12,492 13,211 13,075 End-of-month figures Wednesday figures Aug. Sept. Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 426,686 428,168r 422,784 429,753 427,170 US. government securities2 2 Bought outright—System account 386,955 383,910 385,087 386,766 389,613 386,957 387,584 387,055 386,616 3 Held under repurchase agreements 4,374 7,014 7,830 4,910 7,170 1,355 6,196 1,255 9,332 Federal agency obligations 4 Bought outright 2,336 2,309 2,247 2,311 2,309 2,309 2.309 2,309 2,260 5 Held under repurchase agreements 1,238 1,338 2,970 208 100 444 1,104 824 2,897 6 Acceptances 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 10 1,360 6 35 60 4 24 704 12 8 Seasonal credit 329 294 157 317 325 280 231 205 189 9 Extended credit 0 0 0 0 0 0 0 0 0 10 Float 220 640 318 267 -4 432 742 3,395 981 11 Other Federal Reserve assets 31,224 31,302 31,997 31,837 32,115 31,002 31,564 31,422 32,440 12 Gold stock 11,050 11,050 11,049 11,050 11,050 11,050 11,049 11,049 11,049 13 Special drawing rights certificate account 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 14 Treasury currency outstanding 24,710r 24,766r 24,836 24,738r 24,752r 24,766 24,780 24,794 24,808 ABSORBING RESERVE FUNDS 15 Currency in circulation 432,118r 430,394r 433,238 431,536' 430,8 431,660 433,463 434,677 433,308 16 Treasury cash holdings 277 286 281 285 293 294 281 281 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,149 7,700 5,897 8,215 6,846 5,427 4,722 3,594 5,337 18 Foreign 171 265 176 165 165 183 165 165 168 19 Service-related balances and adjustments .. 6,262 6,539r 7,006 6,288 6,500 6,539 6,481 6,799 6,659 20 Other 293 368 363 371 369 379 363 366 364 21 Other Federal Reserve liabilities and capital .. 14,007 13,744 14,066 13,811 14,102 13,251 13,664 13,660 13,937 22 Reserve balances with Federal Reserve Banks' 13,887 14,406' 15,187 11,486 18,060 10,587 16,150 13,190 20,249 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 3. Excludes required clearing balances and adjustments to compensate for float. 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • January 1997 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. Apr. May June July Aug. Sept.r Oct. 1 Reserve balances with Reserve Banks" 29,374 24,658 20.440 19,181 16,753 16,590 15,392 14,761 13,688 12,796 2 Total vault cash3 36,818 40,378 42,088 40,889 41,146 41,979 42,773 42,517 43,639 42,913 3 Applied vault cash4 33,484 36,682 37,460 36,688 36,382 37,095 37,451 36,880 37,309 36,750 4 Surplus vault cash5 3,334 3,696 4,628 4,201 4,764 4,883 5,322 5,637 6,330 6,164 5 Total reserves6 62,858 61,340 57,900 55,869 53,135 53,686r 52,843 51,642 50,997 49,546 6 Required reserves 61,795 60,172 56,622 54,750 52,275 52,535 51,778 50,681 49,959 48,552 7 Excess reserve balances at Reserve Banks 1,063 1,168 1,278 1,120 860 1,150 1,065 961 1,038 994 8 Total borrowings at Reserve Banks8 82 209 257 91 127 386 368 334 368 287 9 Seasonal borrowings 31 100 40 34 105 192 284 309 306 212 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 July 3 July 17 July 31 Aug. 14 Aug. 28 Sept. 11 Sept. 25 Oct. 9r Oct. 23 Nov. 6 1 Reserve balances with Reserve Banks2 16,735 16,050r 14,448r 14,940 14,613r 14,623 13,324 12.653 13,141 12.354 ? Total vault cash3 41,403 42,347 43.492 43,326 41,604 43,007 44,028 43,941 42,196 43,013 3 Applied vault cash4 36,712 37,320 37,740 37,604 36,114 37,083 37,505 37,258 36,267 37,022 4 Surplus vault cash5 4,692 5,027 5.752 5.722 5,490 5,924 6,523 6,683 5,929 5,991 5 Total reserves6 53,447 53,369 52.188r 52.544r 50,726 51,705 50,829 49,911 49,408 49,376 6 Required reserves 52.007 52,543 50,964 51,514 49,835 50,741 49,745 48,839 48,470 48,372 7 Excess reserve balances at Reserve Banks7 1.439 826 1,223 1,029 891 964 1,084 1,072 938 1,003 8 Total borrowings at Reserve Banks8 386 290 442 306 349 394 335 402 286 161 9 Seasonal borrowings 241 273 304 290 328 308 317 274 205 154 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 Banks' Millions of dollars, averages of daily figures 1996, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 77,908 78,951 74,681 72,796 71,817 73,330 72,201 72,887 71,825 2 For all other maturities 16,122 15,767 16.053 14,397 15,154 15,306 16,965 16,168 16,576 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one dav or under continuing contract 15,321 15,949 15,802 18,816 15,419 15,857 19,483 15,192 14,466 4 For all other maturities 22,504 20,546 20,582 19,778 19,277 19,255 17,812 18,432 19,023 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 14,477 14.819 16,969 19,091 17.772 17,002 16,570 18,957 17,104 6 For all other maturities 35,117 34,640 34,492 36,713 36,037 36,853 37.152 35,978 36,034 All other customers 7 For one day or under continuing contract 38,622 38.220 39,369 40,237 40,007 40,916 42,297 41,575 41,046 8 For all other maturities 14,129 14,166 13,721 13,480 13,730 14,084 14,588 14,137 14,134 MEMO Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 72.693 71.494 65,199 64,451 64,758 62,470 59,218 62,154 62,221 10 To all other specified customers" 20,725 20,800 23.966 23,507 23,324 23,066 23,302 24,890 22,879 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 credit' Seasonal credit" Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 12 O /6 n / 96 Effective date Previous rate 12 O /6 n /9 6 Effective date Previous rate 12 O /6 n / 96 Effective date Previous rate Boston 5.00 2/1/96 5.25 5.40 12/5/96 5.35 5.90 12/5/96 5.85 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 Citv 2/1/96 Dallas ' 1/31/96 San Francisco 5.00 1/31/96 5.25 5.40 12/5/96 5.35 5.90 12/5/96 5.85 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Bank Range (or F.R. Ban level)—All of level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. 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 Mav 11 6.5-7 7 1982—Julv 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 4 6 6 Oct. 16 8-8.5 8.5 30 10 10 Apr. 30 5.5-6 5.5 20 8.5 8.5 Oct. 12 9.5-10 9.5 Mav 2 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—J A ul u y g . 2 1 0 7 10- 1 1 0 0 .5 1 1 0 0 . 5 Dec. 1 1 4 5 8 8 . . 5 5 - - 9 9 9 8 .5 Dec. 20 7 3.5 4 - .5 4 .5 4 3 . . 5 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 9 1992—July 2 3-3.5 3 Oct. 8 11-12 12 13 9 9 7 3 3 10 12 12 Nov. 21 8.5-9 8.5 26 8.5 8.5 1994—May 17 3-3.5 3.5 1980—Feb. 15 12-13 13 Dec. 24 8 8 18 3.5 3.5 19 13 13 Aug. 16 3.5-4 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 Dec. 6, 1996 5.00 5.00 8 14 1987—Sept. 4 5.5-6 6 11 6 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 !941-1970\ and the Annual Statistical Divest, 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 Nonfinancial Statistics • January 1997 t.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of Effective date deposits Net transaction accounts' 1 $0 million-$49.3 million3 33333 11111/////22222/////9999977777 2 More than $49.3 million4 1111100000 11111/////22222/////9999977777 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 with the reserve Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions maintenance period beginning January 2, 1997, for depository institutions that report weekly, include commercial banks, mutual savings banks, savings and loan associations, credit and with the period beginning January 16. 1997, for institutions that report quarterly, the unions, agencies and branches of foreign banks, and Edge Act corporations. exemption was raised from $4.3 million to $4.4 million. 2. Transaction accounts include all deposits against which the account holder is permitted 4. The reserve requirement was reduced from 12 percent to 10 percent on to make withdrawals by negotiable or transferable instruments, payment orders of with- Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that drawal, or telephone or preauthorized transfers for the purpose of making payments to third report quarterly. persons or others. However, accounts subject to the rules that permit no more than six 5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits preauthorized, automatic, or other transfers per month (of which no more than three may be with an original maturity of less than 1 '/i years was reduced from 3 percent to 1 percent for by check, draft, debit card, or similar order payable directly to third parties) are savings the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that deposits, not transaction accounts. began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts nonpersonal time deposits with an original maturity of less than 1 l/i years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of 1 '/> as of June 30 of each year. Effective with the reserve maintenance period beginning January 2, years or more has been zero since Oct. 6, 1983. 1997, for depository institutions that report weekly, and with the period beginning January 16, 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero 1997, for institutions that report quarterly, the amount was decreased from $52.0 million to in the same manner and on the same dates as the reserve requirement on nonpersonal time $49.3 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 TTyypp aa ee nn dd oo ff mm ttrr aa aa tt nn uu ss rrii aa tt cc yy tt iioonn 11999933 11999944 11999955 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 17,717 17,484 10,932 0 88 0 3,311 0 0 0 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 332,229 376,277 398,487 30,556 32,218 40,467 31,726 32,368 34,271 32,791 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 35 0 0 0 1,240 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 31,368 0 0 0 3,511 5,107 0 2,807 2,780 2,371 8 Exchanges -36,582 -21,444 0 0 -4,824 -5,448 0 -4,415 -3,580 -2,890 9 Redemptions 0 0 0 0 787 0 0 0 0 0 One to five years 10 Gross purchases 10,350 9,168 4,966 0 1,899 0 0 0 1,279 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shifts -27,140 -6,004 0 0 -3,511 -4,049 0 -2,807 -1,409 -2,371 13 Exchanges 0 17,801 0 0 4,824 3,748 0 3,694 1,780 2,890 Five to ten years 14 Gross purchases 4,168 3,818 1,239 0 479 0 0 0 297 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shifts 0 -3,145 0 0 0 -1,058 0 0 -1,371 0 17 Exchanges 0 2,903 0 0 0 1,700 0 721 900 0 More than ten years 18 Gross purchases 3,457 3,606 3,122 0 1,065 0 0 0 900 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts 0 -918 0 0 0 0 0 0 0 0 21 Exchanges 0 775 0 0 0 0 0 0 900 0 All maturities 22 Gross purchases 36,915 35,314 20,649 0 3,566 0 3,311 0 3,716 0 23 Gross sales 0 0 0 0 0 0 0 0 0 0 24 Redemptions 767 2,337 2,376 0 787 0 0 0 0 0 Matched transactions 25 Gross purchases 1,475,941 1,700,836 2,197,736 251,623 253,482 259,135 248,534 267,438 265,397 234,992 26 Gross sales 1,475,085 1,701,309 2,202,030 251,086 251,510 259,595 249,277 268,975 264,536 238,036 Repurchase agreements 27 Gross purchases 475,447 309,276 331,694 31,602 48,869 30,688 43,048 46,151 45,202 36,014 28 Gross sales 470,723 311,898 328,497 27,706 50,345 27,404 41,666 37,779 56,286 33,374 29 Net change in U.S. Treasury securities 41,729 29,882 17,175 4,433 3,274 2,824 3,950 6,836 -6,508 -404 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 1,303 108 82 16 40 52 0 27 Repurchase agreements 33 Gross purchases 35,063 52,696 36,851 5,640 2,372 5,722 5,138 3,145 8,500 4,536 34 Gross sales 34,669 52,696 36,776 4,640 3,372 4,372 6,488 2,863 7,544 4,436 35 Net change in federal agency obligations -380 -1,002 -1,228 892 -1,082 1,334 -1,390 231 956 73 36 Total net change in System Open Market Account . , . 41,348 28,880 15,948 5,325 2,192 4,158 2,560 7,066 -5,552 -331 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 Nonfinancial Statistics • January 1997 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements' Millions of dollars Wednesday End of month Account 1996 1996 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Aug. 31 Sept. 30 Oct. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,050 11,049 11,049 11,049 11,049 11,050 11,050 11,049 2 Special drawing rights certificate account 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 3 Coin 595 607 610 609 616 550 596 621 Loans 4 To depository institutions 284 254 909 201 185 339 1,654 162 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 2,309 2,309 2,309 2,260 2,247 2,336 2,309 22,,224477 8 Held under repurchase agreements 444 1,104 824 2,897 2,120 1,238 1,338 2,970 9 Total U.S. Treasury securities 388,312 393,780 388,310 395,948 390,265 391,329 390,924 392,917 10 Bought outright2 386,957 387,584 387,055 386,616 387,585 386,955 383,910 385,087 11 Bills 186,697 187,323 186,795 186,355 187,325 186,694 183,650 184,826 12 Notes 152,392 152,392 152,392 152,392 152,392 152,392 152,392 152,392 13 Bonds 47,869 47,869 47,869 47,869 47,869 47,869 47,869 47,869 14 Held under repurchase agreements 1,355 6,196 1,255 9,332 2,680 4,374 7,014 7,830 15 Total loans and securities 391,350 397,448 392,353 401,305 394,817 395,242 396,226 398,296 16 Items in process of collection 7,459 6,930 12,717 6,629 6,458 4,100 2,521 5,646 17 Bank premises 1,207 1,207 1,213 1,215 1,214 1,197 1,207 1,215 Other assets 18 Denominated in foreign currencies3 19,486 19,494 19,502 19,510 19,518 20,036 19,484 19,511 19 All other4 10,387 10,932 10,867 11,822 11,352 9,997 10,679 11,442 20 Total assets 451,251 457,385 458,030 461,857 454,742 451,890 451,481 457,498 LIABILITIES 21 Federal Reserve notes 407,781 409,583 410,774 409,389 409,453 408,235 406,510 409,304 22 Total deposits 23,437 28,378 24,475 32,959 25,923 25,846 29,331 29,754 23 Depository institutions 17,448 23,127 20,351 27,090 20,041 20,233 20,997 23,317 24 U.S. Treasury—General account 5,427 4,722 3,594 5,337 5,388 5,149 7,700 5,897 25 Foreign—Official accounts 183 165 165 168 165 171 265 176 26 Other 379 363 366 364 330 293 368 363 27 Deferred credit items 6,783 5,761 9,120 5,572 5,482 3,802 1,897 4,375 28 Other liabilities and accrued dividends 4,431 4,411 4,271 4,531 4,475 4,585 4,515 4,598 29 Total liabilities 442,431 448,133 448,640 452,451 445,333 442,468 442,252 448,031 CAPITAL ACCOUNTS 30 Capital paid in 4,535 4,532 4,533 4,530 4,565 4,520 4,535 4,565 31 Surplus 3,850 3,860 3,860 3,860 3,860 3,966 3,958 3,860 32 Other capital accounts 435 861 997 1,015 984 936 736 1,042 33 Total liabilities and capital accounts 451,251 457,385 458,030 461,857 454,742 451,890 451,481 457,498 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 591,049 588,066 592,665 593,389 596,136 567,974 590,730 660000,,442255 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 532,739 532,375 531,563 531,009 530,439 527,475 533,392 530.917 36 LESS: Held by Federal Reserve Banks 124,958 122,792 120,789 121,619 120,986 119,240 126,882 121,613 37 Federal Reserve notes, net 407,781 409,583 410,774 409,389 409,453 408,235 406,510 409,304 Collateral held against notes, net 38 Gold certificate account 11,050 11,049 11,049 11,049 11,049 11,050 11,050 11,049 39 Special drawing rights certificate account 9,718 9.718 9,718 9,718 9,718 9,718 9,718 9,718 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 387,013 388,816 390,007 388,622 388,686 387,467 385,742 388,537 42 Total collateral 407,781 409,583 410,774 409,389 409,453 408,235 406,510 409,304 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 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Aug. 31 Sept. 30 Oct. 31 1 Total loans 284 254 910 201 185 373 1,654 186 2 Within fifteen days1 62 62 827 187 167 512 1,508 171 3 Sixteen days to ninety days 222 192 82 16 18 43 145 15 4 Total U.S. Treasury securities 388,312 393,780 388,310 395,948 390,265 386,955 383,910 385,087 5 Within fifteen days' 14,921 19,860 15,436 18,995 18,935 3,250 7,494 11,135 6 Sixteen days to ninety days 89,725 90,454 93,933 94,169 88,745 92,893 91,276 B3,090 7 Ninety-one days to one year 114,126 113,926 109,782 113,626 113,426 121,790 115,601 121,176 8 One year to five years 95,531 95,531 94,775 94,775 94,775 95,012 95,531 95,302 9 Five years to ten years 33,653 33,653 34,028 34,028 34,028 33,653 33,653 34,028 10 More than ten years 40,356 40,356 40,356 40,356 40,356 40,356 40,356 40,356 11 Total federal agency obligations 2,753 3,413 3,133 5,157 4,367 2,336 2,309 2,247 12 Within fifteen days' 544 1,254 887 3,064 2,274 322 335 154 13 Sixteen days to ninety days 567 796 943 806 806 564 566 806 14 Ninety-one days to one year 712 432 277 275 275 484 477 275 15 One year to five years 440 440 535 520 520 475 440 520 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 Nonfinancial Statistics • January 1997 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1996 IItteemm 1 D 1 D 99 ee 99 cc 22 .. DD 1199 ee 99 cc 33 .. 1 D 1 D 99 ee 99 cc 44 .. DD 1199 ee 99 cc 55 .. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS2222 1111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss3333 54.37 60.52 59.36 56.36 55.73 55.18 54.23 54.11 53.20 52.27 51.35' 50.13 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss4444 54.24 60.44 59.16 56.11 55.71 55.09 54.10 53.73 52.83 51.94 50.98' 49.84 3333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 54.24 60.44 59.16 56.11 55.71 55.09 54.10 53.73 52.83 51.94 50.98' 49.84 4444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 53.21 59.46 58.20 55.09 54.59 54.06 53.37 52.96 52.13 51.31 50.31 49.14 5555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee6666 351.24 386.88 418.72 435.01 436.87 436.64 437.01 439.09r 441.88' 444.20' 445.86' 447.17 Not seasonally adjusted 6666 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss7777 56.06 62.37 61.13 58.02 54.97 56.00 53.29 53.87 53.05 51.88 51.27 49.84 7777 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 55.93 62.29 60.92 57.76 54.95 55.90 53.16 53.48 52.69 51.55 50.90 49.55 8888 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 55.93 62.29 60.92 57.76 54.95 55.90 53.16 53.48 52.69 51.55 50.90 49.55 9999 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss8888 54.90 61.31 59.96 56.74 53.84 54.88 52.43 52.72 51.99 50.92 50.23 48.85 11110000 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee9999 354.55 390.59 422.51 439.03 434.86 437.12 436.13 439.89r 443.22' 444.58r 445.53' 445.42 NNNNOOOOTTTT AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS11110000 11111111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss"""" 56.54 62.86 61.34 57.90 54.88 55.87 53.14 53.69 52.84 51.64 51.00 49.55 11112222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 56.42 62.78 61.13 57.64 54.86 55.78 53.01 53.30 52.48 51.31 50.63 49.26 11113333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 56.42 62.78 61.13 57.64 54.86 55.78 53.01 53.30 52.48 51.31 50.63 49.26 11114444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 55.39 61.80 60.17 56.62 53.75 54.75 52.28 52.54 51.78 50.68 49.96 48.55 11115555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee11112222 360.90 397.62 427.25 444.45 440.77 442.96 442.17 445.95' 449.29' 450.77' 451.70' 451.89 11116666 EEEExxxxcccceeeessssssss rrrreeeesssseeeerrrrvvvveeeessss"""" 1.16 1.06 1.17 1.28 1.14 1.12 .86 1.15 1.07 .96 1.04 .99 11117777 BBBBoooorrrrrrrroooowwwwiiiinnnnggggssss ffffrrrroooommmm tttthhhheeee FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee .12 .08 .21 .26 .02 .09 .13 .39 .37 .33 .37 .29 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 1996 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 . July' Aug.' Sept.' Oct. Seasonally adjusted Measures2 1 Ml 1,024.4 1,128.6 1,148.7 1,124.9 1,108.2 1,099.1 1,091.1 1,075.9 2 M2 3,438.7 3,494.0 3,509.2 3,657.4 3,742.6 3,754.1 3,763.9 3,775.2 3 M3 4,187.1 4,249.6 4,319.2r 4,572.4r 4,732.7 4,751.8 4,779.8 4,820.9 4 L 5,075.6 5,164.5 5,302.9r 5,681.9' 5,851.4 5,883.1 5,923.1 n.a. 5 Debt 11,880.1 12,507.6 13,148.8 13,869.4 14,314.1 14,360.8 14,401.0 n.a. Ml components 6 Currency3 292.9 322.4 354.9 373.2 382.6 385.0 387.5 390.4 7 Travelers checks4 8.1 7.9 8.5 8.9 8.5 8.4 8.4 8.5 8 Demand deposits5 339.1 384.3 382.4 389.8 410.5 407.3 405.3 396.0 9 Other checkable deposits6 384.2 414.0 402.9 353.0 306.7 298.4 290.0 281.0 Nontransaction components 10 In M27 2,414.3 2,365.4 2,360.5 2,532.6 2,634.4 2,655.1 2,672.8 2.699.3 11 In M3 only8 748.5 755.6 810.0r 914.9' 990.1 997.7 1,015.9 1,045.7 Commercial hanks 12 Savings deposits, including MMDAs 754.1 785.0 751.9 775.0 844.9 857.2 864.5 879.1 13 Small time deposits9 509.3 470.3 505.3 578.3 577.6 580.1 582.4 585.0 14 Large time deposits'0, " 286.5 272.2 298.3 342.1 372.2 375.3 382.0 401.7 Thrift institutions 15 Savings deposits, including MMDAs 433.0 433.8 397.0 359.5 368.6 367.1 366.8 368.0 16 Small time deposits9 361.9 317.6 318.2 359.4 351.7 352.9 354.1 356.1 17 Large time deposits10 67.1 61.5 64.8 75.1 76.2 76.8 78.0 78.9 Money market mutual funds 18 Retail 356.0 358.7 388.1 460.3 491.6 497.7 504.9 511.0 19 Institution-only 199.8 197.9 183.7 227.2 252.9 257.2 262.7 264.3 Repurchase agreements and Eurodollars 20 Repurchase agreements'2 128.1 157.5 180.9r 179.4' 192.5 191.6 194.7 197.7 21 Eurodollars'2 66.9 66.3 82.3 91.1 96.2 96.8 98.5 103.1 Debt components 22 Federal debt 3,064.3 3,323.3 3,492.2 3,638.8 3,729.4 3,743.4 3,746.4 n.a. 23 Nonfederal debt 8,815.7 9,184.2 9,656.6 10,230.7 10,584.7 10,617.4 10,654.5 n.a. Not seasonally adjusted Measures2 24 Ml 1,046.0 1,153.7 1,174.2 1,150.7 1,108.3 1,095.0 1,088.6 1,075.3 25 M2 3,455.1 3,514.1 3,529.6 3,677.1 3,749.6 3,758.1 3,761.0 3,770.9 26 M3 4,205.1 4,271.2 4,340.9 4,593.4' 4,734.9 4,757.9 4,774.6 4,821.7 27 L 5,102.9 5,194.1 5,332.3 5,711.4' 5,848.6 5,886.3 5,907.7 n.a. 28 Debt 11,881.5 12,509.6 13,150.2 13,869.2 14,253.7 14,307.9 14,362.9 n.a. Ml components 29 Currency3 295.0 324.8 357.5 376.1 383.8 385.9 386.8 389.0 30 Travelers checks4 7.8 7.6 8.1 8.5 9.1 9.0 8.8 8.6 31 Demand deposits5 354.4 401.8 400.1 407.9 411.1 404.9 404.5 399.1 32 Other checkable deposits6 388.9 419.4 408.4 358.1 304.3 295.2 288.4 278.6 Nontransaction components 33 In M27 2,409.1 2,360.4 2,355.4 2,526.4 2,641.3 2,663.1 2,672.4 2,695.6 34 In M3 only8 750.0 757.1 811.4r 916.3' 985.3 999.8 1,013.6 1,050.8 Commercial banks 35 Savings deposits, including MMDAs 752.9 784.3 751.6 775.0 847.4 860.3 866.9 881.0 36 Small time deposits9 507.8 468.2 502.3 574.3 580.0 581.5 582.5 584.2 37 Large time deposits'0, " 286.0 272.0 298.1 342.0 370.6 376.1 382.7 404.8 Thrift institutions 38 Savings deposits, including MMDAs 432.4 433.4 396.9 359.5 369.7 368.4 367.8 368.8 39 Small time deposits9 360.9 316.1 316.3 356.9 353.1 353.8 354.1 355.6 40 Large time deposits'0 67.0 61.5 64.8 75.1 75.9 76.9 78.1 79.5 Money market mutual funds 41 Retail 355.1 358.3 388.2 460.6 491.1 499.1 501.1 506.0 42 Institution-only 201.1 199.4 185.5 229.4 250.2 256.9 258.0 262.6 Repurchase agreements and Eurodollars 43 Repurchase agreements12 127.2 156.6 179.6 178.0' 193.1 192.7 195.7 199.6 44 Eurodollars12 68.7 67.6 83.4 91.9 95.5 97.2 99.0 104.3 Debt components 45 Federal debt 3,069.8 3,329.5 3,499.0 3,645.9 3,708.3 3,730.9 3,736.1 n.a. 46 Nonfederal debt 8,811.7 9,180.1 9,651.2 10,223.3 10,545.4 10,576.9 10,626.9 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • January 1997 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 M1. 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 1994 1995 IItteemm Dec. Dec. Feb. Mar. Apr. May Juner Julyr Aug.r Sept.r Oct. Interest rates (annual effective yields)- INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts 1.96 1.91 1.91 1.85 1.88 1.88 1.89 1.90 1.91 1.91 1.93 2 Savings deposits3 2.92 3.10 2.98 2.91 2.91 2.89 2.87 2.88 2.86 2.82 2.84 Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 3.79 4.10 3.99 4.02 4.01 4.03 4.08 4.13 4.17 4.11 4.11 4 92 to 182 days 4.44 4.68 4.45 4.49 4.51 4.51 4.55 4.59 4.60 4.61 4.60 5 183 days to 1 year 5.12 5.02 4.79 4.83 4.86 4.88 4.95 5.00 5.00 5.04 5.02 6 More than 1 year to 2'/5 years 5.74 5.17 4.89 4.94 5.03 5.10 5.18 5.25 5.25 5.29 5.27 7 More than 2 Vl years 6.30 5.40 5.10 5.19 5.28 5.36 5.46 5.50 5.50 5.54 5.52 BIF-INSURED SAVINGS BANKS4 8 Negotiable order of withdrawal accounts 1.94 1.91 1.84 1.83 1.84 1.81 1.80 1.81 1.81 1.83 1.90 9 Savings deposits3 2.87 2.98 2.92 2.86 2.85 2.84 2.86 2.88 2.86 2.83 2.80 Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 days 3.80 4.43 4.26 4.37 4.42 4.49 4.54 4.64 4.64 4.60 4.64 11 92 to 182 days 4.89 4.95 4.77 4.76 4.77 4.83 4.91 5.01 5.06 5.12 5.08 12 183 days to 1 year 5.52 5.18 4.91 4.89 4.91 4.96 5.02 5.09 5.26 5.33 5.32 13 More than 1 year to 2'/i years 6.09 5.33 5.10 5.15 5.23 5.26 5.35 5.41 5.59 5.62 5.60 14 More than 2w years 6.43 5.46 5.24 5.24 5.32 5.38 5.51 5.60 5.80 5.82 5.79 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts 304.896 248,417 242,930 218,500 228,551 208,570 201,037 204,980 190,696 190,633 189,375 16 Savings deposits3 737,068 776,466 784,035 827,561 805,419 839,319 838,385 835,033 860,719 853,226 860,416 17 Personal 580,438 615,113 623,110 661,686 639,848 668,788 667,802 662,465 683,081 675,378 681.355 18 Nonpersonal 156,630 161,353 160,925 165,875 165,572 170,531 170,583 172,568 177,638 177,848 179,061 Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 32,265 32,170 35,719 35,426 34,117 30,383 31,483 31,690 32,907 32,617 32,354 20 92 to 182 days 96,650 93,941 97,219 97,230 96,168 95,911 94.654 93,941 91,235 91,290 91,328 21 183 days to 1 year 163,062 183,834 184,095 186,206 190,297 193,821 194,900 197,108 200,038 200,514 199,895 22 More than 1 year to 2'/i years 164,395 208,601 210,493 209,051 208,571 208,932 209,390 208,906 209,618 211,727 213,681 23 More than 1.V1 years 192,712 199,002 198,922 199,267 198,236 198,922 198,935 198,224 199,755 198,426 199,058 24 IRA and Keogh plan deposits 144,155 150,546 149,965 151,517 151,396 151,652 151,690 150,873 151,048 151,327 151,313 BIF-INSURED SAVINGS BANKS4 25 Negotiable order of withdrawal accounts 11,175 11,918 11,597 11,671 11,461 11,715 11,255 10,889 10,682 9,756 9,848 26 Savings deposits3 70,082 68,643 67,614 67,215 66,729 67,630 66,938 66,854 67,431 67.888 67,884 27 Personal 67,159 65,366 64.524 64,152 63,486 64,121 63,642 63,557 63,927 64,419 64,334 28 Nonpersonal 2,923 3,277 3,090 3,063 3,243 3,510 3,296 3,296 3,504 3,470 3,550 Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 2,144 2,001 2,131 2,145 2,182 2,349 2,229 2,368 2,316 2,538 2,499 30 92 to 182 days 11,361 12,140 13,247 13,499 13,931 13,955 13,725 13,587 13,440 13,481 13,303 31 183 days to 1 year 18,391 25,686 26,863 26,577 27,305 28,121 27,950 28,506 29,339 29,342 29,613 32 More than 1 year to 2 l/i years 17,787 27,482 26,945 25,959 25,704 25,444 25,513 26.132 26,199 27,096 27,976 33 More than 2Vi years 21,293 22,866 21,819 22,671 22,547 22,661 22,593 22,563 22,477 22,359 22,169 34 IRA and Keogh plan accounts 19,013 21,321 20,845 20,766 20,697 20,683 21,116 21,051 21,052 21,136 21,129 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 • January 1997 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 Mar. Apr. May June July Aug. DEBITS Seasonally adjusted Demand deposits3 1 All insured banks 334,784.1 369,029.1 397,649.3 422,696.7 463,244.4 470,742.4 423,913.3 494,540.4 452,481.2 2 Major New York City banks 171,224.3 191,168.8 201,161.4 224,066.5 245,440.5 252,388.2 219,267.0 265,160.3 238,194.5 3 Other banks 163,559.7 177,860.3 196,487.9 198,630.2 217,803.9 218,354.2 204,646.3 229,380.1 214,281.8 4 Other checkable deposits4 3,481.5 3,798.6 4,207.4 4,942.7 5,281.2 5,703.6 5,183.2 5,865.7 6,750.1 5 Savings deposits (including MMDAs)5 3,497.4 3,766.3 4,507.8 6,283.1 7,357.1 7,132.9 7,198.9 7,453.9 7,728.3 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 785.9 817.4 874.1 881.0 970.0 987.3 865.1 1,029.4 940.6 7 Major New York City banks 4,198.1 4,481.5 4,867.3 5,608.2 5,884.3 6,032.3 4,921.9 6,080.9 5,841.9 8 Other banks 424.6 435.1 475.2 451.6 499.7 502.0 459.4 525.1 486.7 9 Other checkable deposits4 11.9 12.6 15.4 21.7 23.3 26.4 24.7 28.7 34.3 10 Savings deposits (including MMDAs)5 4.6 4.9 6.1 7.8 9.0 8.7 8.6 8.9 9.0 DEBITS Not seasonally adjusted Demand deposits3 tl All insured banks 334,899.2 369,121.8 397,657.8 442,977.6 456,898.8 459,061.9 436,753.7 493,494.4 468,570.5 12 Major New York City banks 171,283.5 191,226.0 201,182.6 236,954.2 238,335.3 240,893.0 225,760.4 264,100.1 246,421.5 13 Other banks 163,615.7 177,895.7 196,475.3 206,023.4 218,563.4 218,168.8 210,993.3 229,394.3 222,149.0 14 Other checkable deposits4 3,481.7 3,795.6 4,202.6 4,990.4 5,580.9 5,479.7 5,332.4 5,754.2 6,697.8 15 Savings deposits (including MMDAs)5 3,498.3 3,764.4 4,500.8 6,444.7 7,690.2 7,061.9 7,375.0 7,580.0 7,736.0 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 786.1 818.2 874.6 947.0 956.6 980.2 903.0 1,028.0 992.2 17 Major New York City banks 4,197.9 4,490.3 4,873.1 6,060.5 5,774.9 5,963.5 5,188.2 6,127.2 6,289.4 18 Other banks 424.8 435.3 475.4 480.6 500.9 509.8 479.4 525.0 513.0 19 Other checkable deposits4 11.9 12.6 15.3 21.8 24.1 25.6 25.6 28.6 34.6 20 Savings deposits (including MMDAs)5 4.6 4.9 6.1 7.9 9.4 8.6 8.8 9.0 9.1 NOTE: Effective September 20, 1996, the Federal Reserve Board has discontinued the 2. Annual averages of monthly figures. Survey of Debits to Selected Deposit Accounts (FR 2573); accordingly, this table has been 3. Represents accounts of individuals, partnerships, and corporations and of states and discontinued. political subdivisions. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities All 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities' A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Oct. Apr. May June July Aug. Sept. Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 3,588.2 3,670.2 3,674.8 3,681.9 3,688.2 3,678.4 3,692.6 3,719.6 3,725.1 3,718.3 3,717.9 3,715.5 2 Securities in bank credit 996.9 991.2 997.3 990.6 984.6 973.2 967.2 968.4 972.5 966.7 962.1 968.3 3 U.S. government securities 712.3 704.5 713.2 708.5 707.6 701.3 702.2 700.8 701.7 701.6 696.0 702.5 4 Other securities 284.6 286.8 284.0 282.1 277.0 271.9 265.0 267.5 270.8 265.1 266.1 265.7 5 Loans and leases in bank credit2 . . . 2,591.3 2,679.0 2,677.5 2,691.4 2,703.6 2,705.2 2,725.4 2,751.2 2,752.6 2,751.7 2,755.8 2,747.2 6 Commercial and industrial 709.4 732.6 735.3 738.5 743.0 744.4 759.0 770.4 768.1 770.9 772.0 771.1 7 Real estate 1,075.3 1,097.6 1,100.0 1,103.4 1,105.5 1,111.7 1,113.4 1,115.5 1,114.9 1,115.1 1,115.8 1,116.7 8 Revolving home equity 78.5 80.1 79.7 79.4 79.9 80.6 81.2 82.4 82.3 82.1 82.5 82.7 9 Other 996.8 1,017.5 1,020.3 1,024.1 1,025.6 1,031.1 1,032.2 1,033.1 1,032.6 1,033.0 1,033.3 1,034.0 10 Consumer 489.2 507.4 504.9 510.4 513.4 514.7 518.3 518.0 517.3 517.5 518.7 518.6 11 Security3 86.7 85.3 82.0 81.5 79.1 72.7 73.4 78.6 81.7 79.4 79.4 74.5 12 Other loans and leases 230.6 256.1 255.3 257.6 262.6 261.7 261.3 268.8 270.5 268.7 269.8 266.2 13 Interbank loans 192.9 210.8 210.7 208.4 197.3 198.3 205.0 199.7 197.0 195.5 210.2 194.4 14 Cash assets4 222.3 222.7 219.5 217.2 219.1 221.8 220.0 222.6 209.8 237.4 234.5 207.9 15 Other assets5 219.3 231.0 230.6 240.5 250.0 255.6 258.5 250.9 249.6 252.6 258.5 243.3 16 Total assets6 4,165.9 4,277.6 4,278.6 4,290.7 4,297.0 4,296.6 4318.6 4334.9 4323.5 4345.8 4363.2 4303.1 Liabilities 17 Deposits 2,645.2 2,715.8 2,712.3 2,721.1 2,732.2 2,753.2 2,777.5 2,810.7 2,783.7 2,844.9 2,824.8 2,790.3 18 Transaction 778.3 769.4 755.1 750.0 741.9 734.1 725.6 719.6 701.3 744.7 729.0 703.6 19 Nontransaction 1,866.9 1,946.4 1,957.2 1,971.2 1,990.3 2,019.1 2,051.9 2,091.0 2,082.3 2,100.1 2,095.7 2,086.8 20 Large time 423.0 431.8 438.6 444.2 453.9 460.5 471.5 487.3 479.6 485.0 495.5 492.7 21 Other 1,443.9 1,514.6 1,518.6 1,527.0 1,536.4 1,558.7 1,580.4 1,603.7 1,602.7 1,615.1 1,600.3 1,594.1 22 Borrowings 687.0 718.1 721.9 713.3 705.9 717.9 718.8 683.3 674.1 683.0 698.4 672.3 23 From banks in the U,S 299.7 302.9 307.3 303.3 295.0 300.1 303.5 294.5 289.4 291.5 311.2 286.0 24 From others 387.3 415.2 414.6 409.9 410.9 417.8 415.3 388.8 384.7 391.5 387.2 386.3 25 Net due to related foreign offices 257.8 255.5 256.9 257.2 253.6 244.4 248.9 243.8 253.5 237.4 241.3 245.0 26 Other liabilities 222.9 230.2 219.7 226.4 218.7 218.6 218.6 238.4 240.6 234.0 238.1 239.2 27 Total liabilities 3,812.9 3,919.6 3,910.7 3,917.9 3,910.4 3,934.1 3,963.9 3,976.1 3,952.0 3,9993 4,002.6 3,946.8 28 Residual (assets less liabilities)7 353.0 358.0 367.9 372.8 386.6 362.5 354.7 358.8 371.6 346.6 360.5 356.3 Not seasonally adjusted Assets 29 Bank credit 3,590.1 3,671.2 3,672.3 3,679.0 3,681.4 3,677.6 3,696.7 3,718.5 3,717.2 3,722.0 3,709.2 3,722.1 30 Securities in bank credit 998.8 996.4 1,002.3 991.9 981.6 977.4 970.1 967.7 969.3 967.6 959.6 970.9 31 U.S. government securities 710.5 710.5 714.0 708.6 705.4 704.5 703.7 700.1 699.0 701.9 695.4 702.4 32 Other securities 288.3 285.9 288.3 283.2 276.2 272.9 266.4 267.6 270.3 265.6 264.2 268.5 33 Loans and leases in bank credit2 .. . 2,591.3 2,674.8 2,670.0 2,687.1 2,699.8 2,700.2 2,726.7 2,750.8 2,747.9 2,754.4 2,749.7 2,751.2 34 Commercial and industrial 705.5 738.5 740.8 741.4 744.1 741.1 754.0 765.8 763.5 766.1 766.2 767.4 35 Real estate 1,078.5 1,093.7 1,096.9 1,102.0 1,105.3 1,111.2 1,115.3 1,118.6 1,118.5 1,118.8 1,117.9 1,119.5 36 Revolving home equity 79.1 79.5 79.6 79.3 80.0 80.8 81.7 83.0 83.0 82.7 83.2 83.4 37 Other 999.4 1,014.2 1,017.3 1,022.7 1,025.3 1,030.4 1,033.5 1,035.6 1,035.5 1,036.1 1,034.7 1,036.1 38 Consumer 489.8 504.7 503.2 506.6 510.6 514.8 519.5 518.5 517.1 518.0 519.5 519.6 39 Security3 85.3 86.2 77.9 79.5 76.6 70.8 73.1 76.9 76.5 79.3 76.8 75.5 40 Other loans and leases 232.2 251.8 251.2 257.5 263.1 262.2 264.9 270.9 272.3 272.2 269.3 269.3 41 Interbank loans 192.1 207.8 204.3 204.5 194.5 192.9 199.5 197.8 196.8 196.0 201.9 194.8 42 Cash assets4 223.3 217.2 216.9 215.1 216.8 212.3 220.9 223.5 215.0 251.0 216.4 212.8 43 Other assets5 219.7 228.9 231.4 240.1 250.8 257.5 259.8 251.2 251.6 253.0 252.8 247.0 44 Total assets6 4,168.6 4,268.1 4,267.8 4,281.4 4,286.3 4,282.7 4319.0 43333 4323.0 4364.2 4322.5 4319.0 Liabilities 45 Deposits 2,645.2 2,712.7 2,702.0 2,717.9 2,725.3 2,740.9 2,776.8 2,808.4 2,796.6 2,855.5 2,786.0 2,792.0 46 Transaction 778.6 768.4 742.8 743.5 734.8 720.4 724.7 718.0 708.9 756.4 695.8 708.6 47 Nontransaction 1,866.6 1,944.3 1,959.3 1,974.4 1,990.5 2,020.5 2,052.1 2,090.4 2,087.8 2,099.1 2,090.2 2,083.4 48 Large time 421.4 431.7 444.0 444.1 451.7 459.7 470.2 485.4 478.3 481.9 493.8 490.9 49 Other 1,445.2 1,512.7 1,515.3 1,530.4 1,538.8 1,560.8 1,581.9 1,605.0 1,609.5 1,617.2 1,596.4 1,592.5 50 Borrowings 688.3 706.2 717.3 721.8 714.6 709.1 711.1 674.0 667.9 674.1 678.9 668.8 51 From banks in the U.S 292.7 300.8 303.8 305.4 293.1 288.8 288.1 284.5 289.8 280.0 286.9 280.4 52 From others 395.6 405.4 413.5 416.4 421.5 420.3 423.0 389.4 378.1 394.1 392.0 388.4 53 Net due to related foreign offices 258.9 255.8 259.1 249.5 251.8 243.4 245.1 245.2 249.4 238.6 247.9 250.1 54 Other liabilities 222.2 226.5 222.3 227.1 218.2 218.1 218.7 238.4 240.6 234.0 238.1 239.2 55 Total liabilities 3,814.6 3,9013 3,900.7 3,9163 3,909.9 3,911.5 3,951.7 3,965.8 3,954.5 4,002.2 3,951.0 3,950.1 56 Residual (assets less liabilities)7 354.0 366.9 367.1 365.1 376.4 371.3 367.3 367.4 368.4 361.9 371.6 368.9 MEMO 57 Revaluation gains on off-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 68.3 69.2 68.0 66.7 68.5 58 Revaluation losses on off-balancesheet items8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 58.2 59.2 57.9 56.8 58.0 Footnotes appear on page A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • January 1997 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Oct. Apr. May June July Aug. Sept. Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 3,148.6 3,212.0 3,214.9 3,215.0 3,221.3 3,212.8 3,228.0 3,236.4 3,238.7 3,237.6 3,234.3 3,233.3 2 Securities in bank credit 852.9 842.0 845.7 838.1 836.2 823.7 822.5 821.6 826.6 821.8 815.5 819.4 3 U.S. government securities 646.3 633.0 635.4 629.4 628.3 620.2 619.9 618.4 618.6 621.0 614.1 618.8 4 Other securities 206.5 209.1 210.3 208.7 207.9 203.5 202.6 203.2 208.0 200.8 201.3 200.6 5 Loans and leases in bank credit2 2,295.8 2,370.0 2,369.2 2,376.9 2,385.1 2,389.2 2,405.6 2,414.8 2,412.1 2,415.8 2,418.8 2,413.9 6 Commercial and industrial 531.5 545.9 548.2 548.4 550.6 552.7 560.5 563.2 561.8 564.0 564.6 562.8 7 Real estate 1,038.0 1,064.0 1,066.5 1,070.3 1,072.5 1,078.6 1,080.6 1,082.3 1,081.8 1,081.7 1,082.6 1,083.3 8 Revolving home equity 78.5 80.1 79.7 79.3 79.9 80.6 81.2 82.3 82.4 82.1 82.5 82.7 9 Other 959.6 983.9 986.8 990.9 992.6 998.0 999.4 999.9 999.5 999.6 1,000.1 1,000.7 10 Consumer 489.2 507.4 504.9 510.4 513.4 514.7 518.3 518.0 517.3 517.5 518.7 518.6 11 Security3 51.6 53.0 50.7 46.8 45.9 41.9 44.1 43.8 44.5 44.1 44.1 42.6 12 Other loans and leases 185.5 199.7 198.9 201.0 202.8 201.2 202.1 207.5 206.6 208.4 208.8 206.6 13 Interbank loans 167.2 187.9 187.4 184.1 178.0 181.4 185.5 181.1 178.3 181.1 189.1 175.0 14 Cash assets4 194.1 196.3 193.2 191.4 191.3 194.0 192.2 193.9 180.1 209.9 205.2 179.4 15 Other assets5 172.9 188.9 187.6 200.7 210.9 215.5 220.2 217.9 216.9 219.8 224.7 210.5 16 Total assets6 3,626.1 3,728.1 3,7263 3,734.1 3,744.1 3,746.2 3,7683 3,771.6 3,7563 3.790.5 3,795.4 3,740.4 Liabilities 17 Deposits 2,470.2 2,546.5 2,539.9 2,549.5 2,552.4 2,572.8 2,591.8 2,605.0 2,582.9 2,641.3 2,612.1 2,581.5 18 Transaction 769.1 759.0 744.3 739.3 731.3 723.7 716.1 709.0 691.5 733.6 717.1 693.7 19 Nontransaction 1,701.1 1,787.4 1,795.6 1,810.2 1,821.1 1,849.0 1,875.7 1,896.1 1,891.5 1,907.7 1,894.9 1,887.8 20 Large time 260.9 275.6 279.4 283.2 287.1 292.1 297.6 295.4 292.2 296.6 297.2 296.6 21 Other 1.440.2 1,511.8 1,516.2 1,527.0 1,534.0 1,557.0 1,578.1 1,600.6 1,599.3 1,611.1 1,597.7 1,591.2 22 Borrowings 571.4 588.1 585.6 583.1 581.1 586.2 597.0 567.6 558.9 567.3 581.6 558.0 23 From banks in the U.S 268.1 264.4 270.2 270.6 264.2 264.6 269.9 260.6 253.9 257.2 276.9 253.8 24 From others 303.3 323.8 315.4 312.5 316.9 321.6 327.1 307.1 305.0 310.1 304.7 304.2 25 Net due to related foreign offices 92.7 85.4 88.8 80.6 78.0 73.9 74.0 78.7 84.8 76.7 80.5 76.5 26 Other liabilities 140.7 154.9 147.5 157.1 151.4 153.1 153.1 165.8 167.5 164.0 166.2 164.4 27 Total liabilities 3,274.9 3,375.0 3,361.8 33703 3362.9 3385.9 3,415.9 3,417.1 3394.2 3,449.4 3,440.4 3380.4 28 Residual (assets less liabilities)7 351.2 353.1 364.5 363.8 381.2 360.3 352.5 354.5 362.1 341.2 355.1 360.0 Not seasonally adjusted Assets 29 Bank credit 3,153.3 3,214.7 3,215.3 3,215.3 3,213.5 3,209.7 3,230.5 3,238.5 3,239.4 3,243.2 3,229.8 3,238.7 30 Securities in bank credit 853.9 847.1 849.0 841.4 832.3 825.8 824.0 819.8 823.9 820.9 812.3 819.1 31 U.S. government securities 645.3 638.7 637.0 630.6 626.3 622.1 622.0 618.3 618.0 621.4 613.8 618.8 32 Other securities 208.6 208.4 212.0 210.8 206.0 203.6 202.0 201.5 205.9 199.4 198.5 200.4 33 Loans and leases in bank credit2 2,299.4 2,367.6 2,366.3 2,373.8 2,381.2 2,383.9 2,406.5 2,418.7 2,415.5 2,422.3 2,417.5 2,419.6 34 Commercial and industrial 529.0 551.8 553.6 550.9 550.6 548.5 556.3 560.8 559.2 561.5 561.2 561.1 35 Real estate 1,041.2 1,060.5 1,063.6 1,068.9 1,072.4 1,078.1 1,082.3 1,085.4 1,085.3 1,085.5 1,084.7 1,086.0 36 Revolving home equity 79.1 79.5 79.6 79.3 80.0 80.8 81.7 83.0 83.0 82.6 83.1 83.3 37 Other 962.1 981.0 984.0 989.6 992.4 997.3 1,000.6 1,002.4 1,002.4 1,002.8 1,001.6 1,002.6 38 Consumer 489.8 504.7 503.2 506.6 510.6 514.8 519.5 518.5 517.1 518.0 519.5 519.6 39 Security3 51.9 53.9 49.6 47.0 44.6 41.0 44.0 44.0 43.9 45.1 43.5 43.5 40 Other loans and leases 187.6 196.7 196.3 200.4 203.0 201.5 204.5 210.1 210.0 212.2 208.6 209.4 41 Interbank loans 164.6 185.8 180.8 182.1 175.3 176.5 179.4 177.9 177.1 179.8 178.5 174.5 42 Cash assets4 194.7 191.4 191.0 188.6 188.6 183.8 192.2 194.3 184.8 223.0 186.9 183.8 43 Other assets5 173.6 188.1 187.9 200.5 212.2 216.4 221.3 218.4 219.3 220.6 219.5 213.9 44 Total assets6 3,629.6 3,723.1 3,718.1 3,7293 3,732.5 3,728.9 3,765.6 3,771.7 3,763.1 3,809.0 3,757.1 3,753.4 Liabilities 45 Deposits 2,471.9 2,545.7 2,528.2 2,544.1 2,547.8 2,562.1 2,591.1 2,604.5 2,597.7 2,654.7 2,575.2 2,585.1 46 Transaction 769.2 758.5 732.7 733.1 724.1 710.2 714.5 707.1 698.8 745.1 684.1 698.3 47 Nontransaction 1,702.7 1,787.2 1,795.5 1,811.0 1,823.6 1,852.0 1,876.6 1,897.4 1,898.9 1,909.6 1,891.2 1,886.9 48 Large time 260.7 277.0 282.7 283.1 287.2 293.4 296.9 294.9 291.7 295.5 297.0 296.7 49 Other 1,442.0 1,510.2 1,512.8 1,528.0 1,536.4 1,558.5 1,579.6 1,602.5 1,607.2 1,614.2 1,594.1 1,590.2 50 Borrowings 574.8 575.9 584.1 587.3 584.0 575.5 587.5 560.8 556.1 559.4 564.4 558.3 51 From banks in the U.S 262.7 263.8 268.7 270.8 260.8 253.7 254.7 252.8 257.3 246.9 256.2 249.6 52 From others 312.1 312.1 315.5 316.5 323.1 321.8 332.9 308.1 298.8 312.4 308.2 308.7 53 Net due to related foreign offices 92.0 85.8 93.8 79.3 76.9 72.2 70.8 77.9 78.3 74.0 84.6 80.3 54 Other liabilities 141.0 152.9 149.0 157.5 151.4 151.7 153.0 165.8 167.5 164.0 166.2 164.4 55 Total liabilities 3,279.7 3,360.4 3,355.1 33683 3360.0 3361.6 3,402.5 3,409.0 3399.6 3,452.1 3390.5 3388.1 56 Residual (assets less liabilities)7 349.9 362.7 363.0 361.0 372.5 367.3 363.1 362.7 363.5 356.9 366.5 365.2 MEMO 57 Revaluation gains on off-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 32.4 34.3 32.0 31.2 31.6 58 Revaluation losses on off-balancesheet items8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28.9 31.0 28.2 27.9 27.7 59 Mortgage-backed securities' n.a. n.a. n.a. n.a. n.a. n.a. n.a. 236.3 235.9 235.2 235.9 237.9 Footnotes appear on page A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Oct. Apr. May June July Aug. Sept. Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 1,813.1 1,826.1 1,824.4 1,814.2 1,808.3 1,790.8 1,798.5 1,801.1 1,805.9 1,803.8 1,797.9 1,794.5 ?. Securities in bank credit 451.8 432.3 434.1 425.4 421.3 408.6 406.7 406.3 411.2 406.9 400.4 403.8 3 U.S. government securities 323.1 303.3 303.9 296.5 293.3 285.1 284.2 284.0 284.2 287.0 279.8 284.0 4 Trading account 20.6 19.4 21.5 20.9 20.8 19.5 20.6 21.3 20.3 25.7 18.3 20.9 Investment account 302.6 283.9 282.4 275.6 272.5 265.6 263.6 262.7 263.9 261.3 261.5 263.5 6 Other securities 128.7 129.0 130.2 128.9 128.0 123.5 122.5 122.3 127.0 119.9 120.6 119.8 7 Trading account 59.3 58.4 59.9 58.4 59.6 57.7 57.1 55.7 60.7 53.5 53.6 53.2 8 Investment account 69.3 70.5 70.3 70.5 68.3 65.8 65.4 66.6 66.3 66.4 67.0 66.6 9 State and local government. . 22.1 21.3 21.0 20.6 20.6 20.5 20.3 20.2 20.2 20.1 20.3 20.3 in Other 47.2 49.3 49.3 49.9 47.7 45.3 45.1 46.4 46.1 46.3 46.7 46.3 n Loans and leases in bank credit2 . . . 1.361.3 1,393.8 1,390.3 1,388.8 1,387.0 1,382.3 1,391.8 1,394.8 1,394.7 1.396.9 1,397.5 1,390.7 l? Commercial and industrial 366.4 373.6 374.0 372.7 373.4 373.5 379.3 380.9 380.1 381.6 382.2 379.9 n Real estate 555.5 561.8 559.1 558.1 554.8 555.7 554.4 552.6 553.4 552.9 552.4 551.8 14 Revolving home equity 51.7 52.3 52.2 51.8 52.1 52.3 52.4 52.5 52.6 52.2 52.6 52.7 is Other 503.7 509.6 506.9 506.3 502.7 503.5 502.0 500.1 500.8 500.7 499.8 499.1 16 Consumer 269.1 274.7 276.0 279.3 279.6 279.8 282.1 279.1 279.1 279.5 279.2 278.8 17 Security1 46.3 47.4 45.4 41.5 40.8 36.8 38.9 38.7 39.5 38.9 38.9 37.6 18 State and local government 11.6 11.2 11.2 11.1 11.2 11.1 10.8 10.8 10.6 10.8 10.8 10.8 19 All other 112.5 125.0 124.6 126.1 127.3 125.4 126.3 132.6 131.9 133.1 133.9 131.8 70 Interbank loans 115.5 131.0 135.2 131.8 129.8 131.8 133.9 130.1 129.0 128.1 137.7 124.7 71 Cash assets4 130.7 128.9 127.0 124.7 126.7 128.3 127.1 127.9 118.6 138.9 137.2 116.7 22 Other assets5 123.5 139.7 138.9 150.1 155.0 159.1 162.1 158.9 159.6 160.6 163.3 152.1 23 Total assets6 2,145.9 2,189.2 2,189.2 2,184.4 2,182.9 2,173.3 2,184.9 2,181.3 2,176.5 2,194.6 2,199.4 2,151.5 Liabilities 74 Deposits 1,296.2 1,335.1 1,331.8 1,332.2 1,336.6 1,340.6 1.344.8 1,350.7 1,338.9 1,371.6 1,358.3 1,333.1 75 Transaction 435.0 424.2 416.7 409.9 407.9 399.7 390.1 384.9 374.8 401.0 390.6 373.4 76 Nontransaction 861.2 910.9 915.1 922.3 928.7 940.9 954.7 965.9 964.1 970.6 967.7 959.8 71 Large time 122.1 127.4 130.4 134.3 136.3 139.3 145.3 151.9 149.5 153.4 153.1 152.2 78 Other 739.1 783.5 784.7 788.0 792.4 801.6 809.3 814.0 814.6 817.2 814.6 807.6 79 Borrowings 431.4 436.2 434.3 426.3 415.4 413.7 424.8 401.2 394.5 400.4 411.4 393.5 30 From banks in the U.S 187.7 182.1 185.4 184.5 182.6 180.5 184.1 171.3 168.5 166.9 183.0 165.7 31 From others 243.6 254.1 248.9 241.8 232.9 233.2 240.8 229.9 226.0 233.5 228.3 227.8 32 Net due to related foreign offices 86.9 80.3 84.0 75.2 72.2 69.5 68.2 75.4 81.7 73.7 76.8 73.4 33 Other liabilities 111.8 126.3 118.3 128.8 122.3 124.9 126.5 141.1 142.7 140.2 141.0 139.3 34 Total liabilities 1,926.3 1,977.9 1,968.4 1,962.6 1,946.5 1,948.7 1,9643 1,968.4 1,957.8 1,986.0 1,987.4 1,939.4 35 Residual (assets less liabilities)7 219.6 211.2 220.8 221.9 236.3 224.6 220.6 212.9 218.7 208.6 212.0 212.1 Not seasonally adjusted Assets 36 Bank credit 1,816.6 1,827.4 1,823.5 1,812.5 1,800.6 1,788.6 1,797.7 1,802.1 1,804.7 1,807.7 1,792.9 1,800.1 37 Securities in bank credit 455.1 433.5 435.2 426.4 418.0 412.1 408.4 406.6 410.3 407.8 399.3 405.9 38 U.S. government securities 324.4 305.3 303.6 295.4 291.7 288.4 286.4 285.9 285.3 289.2 281.5 286.5 39 Trading account 21.2 20.0 21.3 19.6 19.9 20.9 21.0 22.0 20.3 26.9 19.2 21.7 40 Investment acount 303.2 285.2 282.3 275.8 271.8 267.5 265.4 263.9 265.0 262.3 262.3 264.8 41 Other securities 130.7 128.2 131.6 131.0 126.4 123.7 122.0 120.6 125.1 118.6 117.8 119.4 42 Trading account 60.9 58.1 61.7 61.1 58.7 57.8 56.2 53.5 58.1 51.7 50.4 52.4 43 Investment account 69.8 70.1 69.9 69.9 67.7 65.9 65.8 67.1 66.9 66.9 67.4 67.0 44 State and local government. . 22.2 21.3 21.1 20.7 20.3 20.3 20.3 20.2 20.2 20.1 20.3 20.3 45 Other 47.6 48.8 48.8 49.2 47.4 45.6 45.5 46.9 46.8 46.8 47.1 46.8 46 Loans and leases in bank credit2 . . . 1,361.5 1,394.0 1,388.3 1,386.1 1,382.6 1,376.5 1,389.3 1,395.5 1,394.4 1,399.9 1,393.5 1,394.2 47 Commercial and industrial 364.6 377.8 377.6 373.8 373.2 370.6 376.2 379.2 378.2 380.0 379.4 379.2 48 Real estate 556.6 560.2 557.0 556.8 554.6 555.2 554.6 553.9 555.2 554.6 552.7 552.8 49 Revolving home equity 52.2 51.9 52.1 51.7 52.1 52.4 52.8 52.9 53.0 52.6 53.0 53.1 50 Other 504.5 508.4 504.9 505.2 502.5 502.8 501.9 500.9 502.1 502.0 499.7 499.6 51 Consumer 269.1 273.1 274.8 276.9 277.2 279.5 281.8 279.1 278.6 279.4 279.2 279.3 57 Security3 46.5 48.5 44.5 41.8 39.7 35.9 38.8 38.9 38.8 39.9 38.6 38.5 53 State and local government 11.7 11.2 11.2 11.1 11.2 11.2 10.9 10.9 10.8 10.9 10.9 10.9 54 All other 112.9 123.2 123.2 125.6 126.6 124.2 127.0 133.5 132.9 135.0 132.8 133.5 55 Interbank loans 111.9 128.9 131.7 132.9 129.6 127.6 129.3 126.0 124.3 126.2 128.3 124.0 56 Cash assets4 130.4 125.9 125.4 123.6 124.4 120.5 127.3 127.6 120.7 148.5 122.8 119.5 57 Other assets5 123.6 139.1 139.4 151.1 156.4 159.7 162.5 158.9 159.6 160.0 161.1 154.5 58 Total assets6 2,145.9 2,185.1 2,183.7 2,183.7 2,174.4 2,159.7 2,180.0 2,178.0 2,172.8 2,205.9 2,168.6 2,161.7 Liabilities 59 Deposits 1,295.3 1,333.0 1,323.9 1,330.4 1,333.2 1,333.9 1,344.7 1,348.1 1,343.8 1,380.3 1,330.2 1,335.0 60 Transaction 433.8 423.7 408.8 407.0 402.4 389.9 390.2 382.3 376.1 409.1 366.1 376.4 61 Nontransaction 861.4 909.3 915.1 923.5 930.9 944.0 954.6 965.8 967.6 971.3 964.0 958.6 6? Large time 121.5 127.8 132.8 134.3 136.7 140.8 144.6 151.0 148.5 152.0 152.5 152.0 63 Other 739.9 781.5 782.3 789.1 794.1 803.1 810.0 814.8 819.1 819.3 811.5 806.6 64 Borrowings 434.6 427.5 430.7 429.1 421.0 408.9 418.8 396.8 392.6 396.8 399.0 393.7 65 From banks in the U.S 184.4 181.6 182.9 183.9 181.9 174.7 173.7 166.7 171.6 161.9 169.2 163.0 66 From nonbanks in the U.S 250.2 245.9 247.7 245.2 239.1 234.1 245.0 230.1 221.1 234.9 229.8 230.7 67 Net due to related foreign offices 86.2 80.7 89.2 74.1 71.2 67.8 65.0 74.5 75.4 70.7 80.8 76.9 68 Other liabilities 112.2 124.3 120.1 129.2 122.6 123.5 126.2 141.1 142.7 140.2 141.0 139.3 69 Total liabilities 1,928.2 1,965.6 1,963.9 1,962.8 1,948.0 1,934.1 1,954.7 1,960.5 1,954.6 1,988.1 1,950.9 1,944.9 70 Residual (assets less liabilities)7 217.7 219.6 219.8 220.8 226.5 225.6 225.3 217.5 218.2 217.9 217.6 216.8 MEMO 71 Revaluation gains on olf-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 33.7 34.3 32.0 3311..22 3311..66 17 Revaluation losses on off-balancesheet items8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28.9 31.0 28.2 27.9 27.7 73 Mortgage-backed securities9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 186.1 186.1 185.4 185.2 187.1 Digitized for FRASER http://fraser.stlFoouotinsofteesd a.poperagr /o n page A21. Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • January 1997 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Oct. Apr. May June July Aug. Sept. Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 1,335.5 1,385.9 1,390.5 1,400.8 1,413.0 1,422.0 1,429.5 1,435.3 1,432.8 1,433.8 1,436.3 1,438.8 2 Securities in bank credit 401.1 409.8 411.6 412.7 415.0 415.1 415.8 415.2 415.3 415.0 415.0 415.6 3 U.S. government securities 323.2 329.7 331.4 332.9 335.0 335.1 335.8 334.4 334.4 334.0 334.3 334.8 4 Other securities 77.9 80.1 80.1 79.8 80.0 80.0 80.0 80.9 80.9 81.0 80.7 80.8 5 Loans and leases in bank credit2 934.5 976.2 978.9 988.1 998.0 1,006.9 1,013.7 1,020.0 1,017.5 1,018.8 1,021.3 1,023.2 6 Commercial and industrial 165.1 172.3 174.2 175.7 177.2 179.2 181.2 182.4 181.8 182.4 182.4 182.8 7 Real estate 482.6 502.1 507.4 512.2 517.7 522.9 526.1 529.6 528.5 528.8 530.3 531.5 8 Revolving home equity 26.7 27.8 27.5 27.5 27.8 28.3 28.7 29.8 29.7 29.9 29.9 30.0 y Other 455.9 474.4 479.9 484.6 489.9 494.6 497.4 499.8 498.7 498.9 500.4 501.6 10 Consumer 220.1 232.7 228.9 231.1 233.8 234.9 236.2 238.9 238.2 238.0 239.5 239.9 n Security3 5.3 5.5 5.3 5.3 5.1 5.2 5.2 5.1 5.0 5.2 5.1 5.0 12 Other loans and leases 61.4 63.6 63.2 63.9 64.3 64.8 65.0 64.1 64.0 64.4 64.0 63.9 13 Interbank loans 51.7 56.9 52.2 52.3 48.2 49.7 51.6 51.1 49.3 53.0 51.4 50.2 14 Cash assets4 63.4 67.4 66.2 66.7 64.7 65.7 65.1 66.0 61.5 71.0 68.1 62.7 15 Other assets5 49.4 49.2 48.7 50.6 55.9 56.4 58.1 59.0 57.3 59.2 61.4 58.4 16 Total assets6 1,480.2 1,538.9 1,537.1 1,549.7 1361.2 1373.0 1383.4 1390.2 1379.8 1395.9 1396.1 1388.9 Liabilities 17 Deposits 1,174.0 1,211.4 1,208.1 1,217.2 1.215.8 1,232.2 1.247.0 1,254.3 1,244.0 1,269.7 1,253.8 1,248.3 18 Transaction 334.1 334.8 327.6 329.4 323.4 324.1 325.9 324.1 316.7 332.6 326.6 320.3 19 Nontransaction 839.9 876.6 880.5 887.9 892.4 908.1 921.1 930.2 927.4 937.1 927.2 928.0 20 Large time 138.8 148.3 149.0 148.9 150.7 152.8 152.3 143.5 142.6 143.3 144.1 144.4 21 Other 701.1 728.3 731.5 739.0 741.7 755.4 768.8 786.6 784.7 793.9 783.1 783.6 22 Borrowings 140.0 151.9 151.3 156.8 165.6 172.5 172.1 166.4 164.4 166.9 170.2 164.4 23 From banks in the U.S 80.3 82.2 84.8 86.1 81.6 84.1 85.9 89.3 85.4 90.3 93.9 88.0 24 From others 59.7 69.7 66.5 70.6 84.0 88.4 86.3 77.2 79.0 76.6 76.3 76.4 25 Net due to related foreign offices 5.8 5.1 4.7 5.4 5.8 4.4 5.8 3.3 3.1 3.0 3.7 3.2 26 Other liabilities 28.9 28.6 29.2 28.3 29.1 28.2 26.6 24.7 24.8 23.8 25.3 25.1 27 Total liabilities 1,348.7 1,397.1 1393.4 1,407.7 1,416.4 1,437.2 1,451.6 1,448.7 1,436.3 1,463.4 1,453.0 1,441.0 28 Residual (assets less liabilities)7 131.5 141.8 143.7 141.9 144.9 135.7 131.8 141.5 143.5 132.6 143.1 148.0 Not seasonally adjusted Assets 29 Bank credit 1,336.7 1,387.3 1,391.9 1,402.8 1,412.9 1,421.0 1,432.8 1,436.5 1,434.7 1,435.5 1,436.9 1,438.6 30 Securities in bank credit 398.8 413.6 413.8 415.0 414.3 413.6 415.6 413.3 413.6 413.0 413.0 413.2 31 U.S. government securities 320.9 333.4 333.5 335.3 334.6 333.7 335.6 332.4 332.8 332.2 332.3 332.3 32 Other securities 77.9 80.2 80.3 79.8 79.6 79.9 80.1 80.8 80.8 80.8 80.7 81.0 33 Loans and leases in bank credit2 937.9 973.6 978.0 987.7 998.6 1,007.4 1,017.2 1,023.2 1,021.1 1,022.4 1,023.9 1,025.4 34 Commercial and industrial 164.3 174.0 176.0 177.1 177.3 177.9 180.1 181.6 181.0 181.6 181.8 181.9 35 Real estate 484.5 500.3 506.6 512.1 517.8 522.9 527.7 531.5 530.2 530.8 532.1 533.2 36 Revolving home equity 26.9 27.6 27.5 27.6 27.9 28.4 29.0 30.0 29.9 30.0 30.1 30.2 37 Other 457.6 472.7 479.1 484.5 489.9 494.5 498.7 501.5 500.2 500.8 502.0 503.0 38 Consumer 220.7 231.6 228.4 229.7 233.4 235.3 237.7 239.4 238.5 238.6 240.2 240.3 39 Security3 5.4 5.5 5.1 5.2 4.9 5.1 5.1 5.1 5.2 5.2 5.0 5.0 40 Other loans and leases 63.0 62.3 61.9 63.7 65.2 66.1 66.6 65.7 66.3 66.3 64.9 64.9 41 Interbank loans 52.7 56.8 49.1 49.2 45.7 49.0 50.1 52.0 52.8 53.6 50.2 50.5 42 Cash assets4 64.3 65.5 65.6 65.0 64.2 63.3 64.9 66.7 64.0 74.5 64.1 64.3 43 Other assets' 49.9 49.1 48.5 49.4 55.8 56.7 58.8 59.5 59.8 60.6 58.4 59.3 44 Total assets6 1,483.7 1,538.0 1334.4 1345.6 1358.1 1369.2 1385.6 1393.7 13903 1,603.1 13883 1391.7 Liabilities 45 Deposits 1,176.6 1,212.7 1,204.2 1,213.7 1,214.6 1,228.2 1,246.4 1,256.4 1,253.9 1,274.4 1,245.0 1,250.2 46 Transaction 335.4 334.8 323.8 326.1 321.8 320.2 324.3 324.8 322.7 336.0 317.9 321.9 47 Nontransaction 841.3 877.9 880.4 887.6 892.8 908.0 922.0 931.5 931.2 938.3 927.1 928.2 48 Large time 139.2 149.1 149.8 148.8 150.5 152.6 152.4 143.8 143.1 143.4 144.5 144.7 49 Other 702.1 728.7 730.6 738.8 742.3 755.4 769.7 787.7 788.1 794.9 782.6 783.5 50 Borrowings 140.2 148.4 153.5 158.3 163.0 166.7 168.8 164.1 163.4 162.6 165.5 164.6 51 From banks in the U.S 78.3 82.2 85.8 87.0 78.9 79.0 80.9 86.1 85.7 85.0 87.0 86.7 52 From others 61.9 66.2 67.7 71.3 84.0 87.7 87.8 78.0 77.8 77.5 78.5 77.9 53 Net due to related foreign offices 5.8 5.1 4.6 5.2 5.7 4.4 5.9 3.4 2.9 3.3 3.8 3.4 54 Other liabilities 28.9 28.7 28.9 28.3 28.9 28.2 26.8 24.7 24.8 23.8 25.3 25.1 55 Total liabilities 13513 1394.8 1391.2 1,405.4 1,412.1 1,427.5 1,447.8 1,448.5 1,445.1 1,464.1 1,439.6 1,443.2 56 Residual (assets less liabilities)7 132.2 143.2 143.2 140.2 146.0 141.7 137.8 145.2 145.2 139.1 148.9 148.5 MEMO 57 Mortgage-backed securities9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 50.3 49.8 49.8 50.7 50.7 Footnotes appear on page A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Oct. Apr. May June July Aug. Sept. Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 439.6 458.2 459.9 466.9 466.9 465.6 464.6 483.2 486.4 480.7 483.6 482.2 2 Securities in bank credit 144.1 149.2 151.6 152.4 148.4 149.5 144.8 146.8 146.0 144.8 146.7 148.9 3 U.S. government securities 66.0 71.5 77.8 79.0 79.3 81.1 82.3 82.5 83.1 80.5 81.9 83.8 4 Other securities 78.1 77.7 73.7 73.4 69.1 68.4 62.5 64.4 62.9 64.3 64.8 65.1 5 Loans and leases in bank credit2 ... 295.5 309.0 308.3 314.5 318.5 316.1 319.8 336.4 340.4 335.9 337.0 333.3 6 Commercial and industrial 178.0 186.7 187.2 190.0 192.4 191.7 198.5 207.1 206.2 206.9 207.4 208.4 7 Real estate 37.3 33.6 33.5 33.2 33.1 33.1 32.8 33.3 33.1 33.4 33.2 33.4 8 Security3 35.1 32.4 31.3 34.7 33.2 30.8 29.3 34.8 37.2 35.3 35.4 32.0 9 Other loans and leases 45.2 56.3 56.4 56.5 59.8 60.5 59.2 61.2 63.9 60.3 61.0 59.6 10 Interbank loans 25.7 23.0 23.3 24.3 19.3 16.9 19.6 18.5 18.7 14.4 21.1 19.4 11 Cash assets4 28.2 26.3 26.3 25.7 27.7 27.8 27.8 28.7 29.7 27.6 29.3 28.6 12 Other assets5 46.3 42.0 42.9 39.8 39.1 40.2 38.3 33.0 32.7 32.8 33.8 32.8 13 Total assets6 539.8 549.5 5523 556.6 552.9 550.4 550.2 5633 5673 5553 567.8 562.7 Liabilities 14 Deposits 175.0 169.3 172.4 171.7 179.8 180.5 185.8 205.6 200.7 203.6 212.7 208.9 15 Transaction 9.2 10.3 10.8 10.7 10.6 10.3 9.6 10.7 9.9 11.2 11.9 9.9 16 Nontransaction 165.8 159.0 161.7 161.0 169.2 170.1 176.2 195.0 190.9 192.4 200.8 199.0 17 Large time 162.0 156.1 159.2 161.0 166.8 168.4 173.8 191.9 187.5 188.3 198.2 196.1 18 Other 3.7 2.8 2.5 0.0 2.4 1.7 2.3 3.1 3.4 4.0 2.6 2.9 19 Borrowings 115.6 129.9 136.3 130.2 124.9 131.7 121.8 115.7 115.2 115.8 116.8 114.3 20 From banks in the U.S 31.6 38.5 37.1 32.7 30.8 35.5 33.6 33.9 35.5 34.3 34.3 32.2 21 From others 84.0 91.4 99.2 97.5 94.0 96.2 88.2 81.7 79.8 81.5 82.5 82.1 22 Net due to related foreign offices 165.1 170.0 168.1 176.6 175.6 170.5 174.9 165.1 168.7 160.7 160.8 168.5 23 Other liabilities 82.3 75.3 72.2 69.2 67.3 65-5 65.5 72.6 73.1 69.9 71.9 74.8 24 Total liabilities 538.0 544.6 549.0 547.7 547.5 548.2 548.0 559.0 557.8 549.9 5623 5663 25 Residual (assets less liabilities)7 1.8 4.9 3.4 9.0 5.4 2.2 2.2 4.3 9.5 5.4 5.5 -3.7 Not seasonally adjusted Assets 26 Bank credit 436.8 456.5 457.0 463.7 467.9 467.9 466.2 480.0 477.8 478.8 479.5 483.4 27 Securities in bank credit 144.9 149.3 153.3 150.4 149.2 151.7 146.0 147.9 145.4 146.7 147.3 151.8 28 U.S. government securities 65.2 71.8 77.0 78.0 79.0 82.4 81.7 81.8 81.0 80.5 81.6 83.6 29 Trading account n.a. n.a n.a. n.a. n.a n.a. n.a. 18.6 18.1 17.8 18.9 19.2 30 Investment account n.a. n.a. n.a. n.a. n.a. n.a. n.a. 63.2 62.8 62.7 62.7 64.4 31 Other securities 79.7 77.4 76.3 72.5 70.2 69.3 64.3 66.1 64.4 66.2 65.7 68.2 32 Trading account n.a. n.a. n.a. n.a. n.a. n.a. n.a 46.1 44.5 46.3 45.9 47.9 33 Investment account n.a. n.a. n.a. n.a. n.a. n.a. n.a. 20.0 19.9 19.9 19.8 20.3 34 Loans and leases in bank credit2 . . . 291.9 307.3 303.7 313.2 318.7 316.3 320.2 332.1 332.4 332.1 332.2 331.6 35 Commercial and industrial 176.5 186.7 187.1 190.5 193.5 192.6 197.7 205.1 204.3 204.6 205.0 206.3 36 Real estate 37.3 33.2 33.3 33.1 33.0 33.1 33.0 33.3 33.1 33.3 33.2 33.5 37 Security3 33.4 32.2 28.3 32.5 32.0 29.8 29.1 32.9 32.6 34.1 33.3 31.9 38 Other loans and leases 44.6 55.1 54.9 57.1 60.1 60.7 60.4 60.9 62.4 60.0 60.7 59.8 39 Interbank loans 27.5 22.0 23.4 22.4 19.2 16.4 20.2 19.8 19.7 16.1 23.4 20.3 40 Cash assets4 28.6 25.7 25.9 26.6 28.2 28.5 28.7 29.1 30.3 28.0 29.4 29.0 41 Other assets5 46.1 40.7 43.5 39.6 38.6 41.1 38.5 32.8 32.3 32.4 33.3 33.2 42 Total assets6 539.0 545.0 549.8 552.1 553.8 553.9 553.5 561.6 559.9 555.2 5653 565.6 Liabilities 43 Deposits 173.3 167.0 173.9 173.8 177.5 178.8 185.7 203.9 198.9 200.8 210.8 206.9 44 Transaction 9.4 9.9 10.1 10.4 10.6 10.3 10.2 10.8 10.0 11.3 11.7 10.3 45 Nontransaction 163.9 157.1 163.8 163.4 166.9 168.5 175.5 193.0 188.9 189.5 199.0 196.6 46 Large time 160.7 154.7 161.3 161.0 164.5 166.3 173.2 190.6 186.6 186.5 196.7 194.3 47 Other 3.2 2.4 2.4 2.4 2.4 2.3 2.3 2.5 2.3 3.0 2.3 2.3 48 Borrowings 113.5 130.3 133.2 134.4 130.6 133.6 123.6 113.2 111.8 114.8 114.5 110.5 49 From banks in the U.S 29.9 37.0 35.1 34.5 32.2 35.1 33.5 31.8 32.6 33.1 30.7 30.7 50 From others 83.6 93.3 98.1 99.9 98.4 98.5 90.1 81.4 79.2 81.7 83.8 79.8 51 Net due to related foreign offices 166.9 170.0 165.3 170.2 175.0 171.2 174.3 167.2 171.0 164.6 163.3 169.8 52 Other liabilities 81.2 73.6 73.3 69.7 66.8 66.4 65.7 72.6 73.1 69.9 71.9 74.8 53 Total liabilities 534.8 540.9 545.7 548.1 549.9 549.9 549.2 556.8 554.9 550.1 560.4 562.0 54 Residual (assets less liabilities)7 4.1 4.1 4.1 4.1 4.0 4.0 4.2 4.7 5.0 5.0 5.0 3.6 MEMO 55 Revaluation gains on off-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. n.a. n.a 35.9 34.9 36.1 35.5 36.9 56 Revaluation losses on off-balancesheet items8 n.a n.a. n.a. n.a n.a. n.a. n.a. 29.3 28.2 29.6 28.9 30.3 NOTE. Tables 1.27 and 1.28 have been discontinued; some of the data from these two 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry tables have been added to table 1.26. For a detailed explanation, see "Announcements," p. 31. securities. 1. Covers the following types of institutions in the fifty states and the District of 4. Includes vault cash, cash items in process of collection, balances due from depository Columbia: domestically chartered commercial banks that submit a weekly report of condition institutions, and balances due from Federal Reserve Banks. (large domestic); other domestically chartered commercial banks (small domestic); branches 4. Includes vault cash, cash items in process of collection, balances due from depository and agencies of foreign banks, and Edge Act and Agreement corporations (foreign-related institutions, and balances due from Federal Reserve Banks. institutions). Excludes International Banking Facilities. Data are Wednesday values or pro 5. Excludes the due-from position with related foreign offices, which is included in "Net rata averages of Wednesday values. Large domestic banks constitute a universe; data for due to related foreign offices." small domestic banks and foreign-related institutions are estimates based on weekly samples 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications transfer risk. Loans are reported gross of these items. of assets and liabilities. 7. This balancing item is not intended as a measure of equity capital for use in capital The data for large and small domestic banks presented on pp. A19 and A20 are adjusted to adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the remove the estimated effects of mergers between these two groups. The adjustment for seasonal patterns estimated for total assets and total liabilities. mergers changes past levels to make them comparable with current levels. Estimated 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity quantities of balance sheet items acquired in mergers are removed from past data for the bank and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. group that contained the acquired bank and put into past data for the group containing the 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. Digitized for FaRcqAuiSrinEg Rba nk. Balance sheet data for acquired banks are obtained from call reports, and a government-sponsored enterprises, and private entities. ratio procedure is used to adjust past levels. http://fraser.stlo2u. isEfxecldud.eos rfged/ eral funds sold to, reverse RPs with, and loans made to commercial banks Federal Reserinv ethe B Uanintekd Sotaf teSs,t .a llL oof uwihsich are included in "Interbank loans."

A22 Domestic NonfinancialS tatistics • January 1997 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 Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 1111 AAAAllllllll iiiissssssssuuuueeeerrrrssss 528,832 545,619 555,075 595,382 674,904 710,690 719,069 731,027 734,730 753v276r 757,155 FFFFiiiinnnnaaaannnncccciiiiaaaallll ccccoooommmmppppaaaannnniiiieeeessss'''' 2222 DDDDeeeeaaaalllleeeerrrr----ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr"""",,,, ttttoooottttaaaallll 212,999 226,456 218,947 223.038 275,815 302,504 301,670 310,524 317,426r 329,026 336,833 3333 DDDDiiiirrrreeeeccccttttllllyyyy ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr3333,,,, ttttoooottttaaaallll 182,463 171,605 180,389 207,701 210,829 211,833 221,463 223,236 222,583 230,318 226,599 4444 NNNNoooonnnnffffiiiinnnnaaaannnncccciiiiaaaallll ccccoooommmmppppaaaannnniiiieeeessss4444 133,370 147,558 155,739 164,643 188,260 196,352 195,936 197,267 194,722 193,932r 193,724 Bankers dollar acceptances (not seasonally adjusted)5 5555 TTTToooottttaaaallll 43,770 38,194 32,348 29.835 29,242 BBBByyyy hhhhoooollllddddeeeerrrr 6666 AAAAcccccccceeeeppppttttiiiinnnngggg bbbbaaaannnnkkkkssss 11,017 10,555 12,421 11,783 7777 OOOOwwwwnnnn bbbbiiiillllllllssss 9,347 9,097 10,707 10,462 8888 BBBBiiiillllllllssss bbbboooouuuugggghhhhtttt ffffrrrroooommmm ooootttthhhheeeerrrr bbbbaaaannnnkkkkssss 1,670 1,458 1,714 1,321 FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee BBBBaaaannnnkkkkssss6666 9999 FFFFoooorrrreeeeiiiiggggnnnn ccccoooorrrrrrrreeeessssppppoooonnnnddddeeeennnnttttssss 1,739 1,276 725 410 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11110000 OOOOtttthhhheeeerrrrssss 31,014 26.364 19,202 17,642 BBBByyyy bbbbaaaassssiiiissss 11111111 IIIImmmmppppoooorrrrttttssss iiiinnnnttttoooo UUUUnnnniiiitttteeeedddd SSSSttttaaaatttteeeessss 12,843 12,209 10,217 10,062 11112222 EEEExxxxppppoooorrrrttttssss ffffrrrroooommmm UUUUnnnniiiitttteeeedddd SSSSttttaaaatttteeeessss 10,351 8.096 7,293 6,355 11113333 AAAAllllllll ooootttthhhheeeerrrr 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 are 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 Loans' Percent per year Average Average rate rate 6.00 1993 6.00 1994—Jan. . 6.00 1995—July .. 1994 7.15 Feb. 6.00 Aug. 6.25 1995 8.83 Mar. 6.06 Sept. 6.75 Apr. 6.45 Oct. . 7.25 1993—Jan. . 6.00 May 6.99 Nov. . 7.75 Feb. 6.00 June 7.25 Dec. 8.50 Mar. 6.00 July . 7.25 Apr. 6.00 Aug. 7.51 1996—Jan. . 9.00 May 6.00 Sept. 7.75 Feb. 8.75 June 6.00 Ocl 7.75 Mar. 8.50 July . 6.00 Nov. 8.15 Apr. Aug. 6.00 Dec. 8.50 May Sept. 6.00 June Oct 6.00 1995—Jan. . 8.50 July . Nov. 6.00 Feb. 9.00 Aug. Dec. 6.00 Mar. 9.00 Sept. Apr. 9.00 Oct. . May 9.00 Nov. June 9.00 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 July Aug. Sept. Oct. Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 MONEY MARKET INSTRUMENTS 1 Federal funds1-2,3 3.02 4.21 5.83 5.40 5.22 5.30 5.24 5.34 5.40 5.14 5.22 5.22 2 Discount window borrowing2,4 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 pape/•3,5,f' 3 1-month 3.17 4.43 5.93 5.44 5.39 5.45 5.37 5.47 5.41 5.36 5.35 5.36 4 3-month 3.22 4.66 5.93 5.53 5.42 5.52 5.43 5.52 5.48 5.43 5.42 5.42 5 6-month 3.30 4.93 5.93 5.67 5.51 5.66 5.45 5.62 5.53 5.45 5.45 5.44 Finance paper, directly placed3,5,7 6 1-month 3.12 4.33 5.81 5.33 5.28 5.33 5.25 5.33 5.28 5.25 5.24 5.24 7 3-month 3.16 4.53 5.78 5.43 5.31 5.38 5.31 5.35 5.31 5.29 5.32 5.31 8 6-month 3.15 4.56 5.68 5.44 5.33 5.40 5.28 5.38 5.32 5.27 5.27 5.27 Bankers acceptances3,5,8 9 3-month 3.13 4.56 5.81 5.45 5.32 5.39 5.32 5.34 5.34 5.35 5.32 5.31 10 6-month 3.21 4.83 5.80 5.57 5.40 5.51 5.36 5.44 5.42 5.38 5.34 5.33 Certificates of deposit, secondary market3,9 11 1-month 3.11 4.38 5.87 5.37 5.32 5.38 5.28 5.38 5.32 5.28 5.27 5.27 12 3-month 3.17 4.63 5.92 5.53 5.40 5.51 5.41 5.49 5.48 5.40 5.40 5.40 13 6-month 3.28 4.96 5.98 5.75 5.57 5.71 5.51 5.66 5.58 5.50 5.50 5.50 14 Eurodollar deposits, 3-month3,10 3.18 4.63 5.93r 5.49 5.41 5.49 5.41 5.48 5.49 5.41 5.41 5.38 U.S. Treasury bills Secondary market'" 15 3-month 3.00 4.25 5.49 5.15 5.05 5.09 4.99 4.98 4.91 4.98 5.00 5.00 16 6-month 3.12 4.64 5.56 5.30 5.13 5.24 5.11 5.13 5.08 5.10 5.11 5.13 17 1-year . 3.29 5.02 5.60 5.52 5.35 5.50 5.25 5.40 5.30 5.26 5.26 5.26 Auction average •" 18 3-month 3.02 4.29 5.51 5.17 5.09 5.15 5.01 5.18 5.01 4.96 5.01 5.01 19 6-month 3.14 4.66 5.59 5.32 5.17 5.29 5.12 5.30 5.17 5.07 5.11 5.12 20 1-year 3.33 5.02 5.69 5.49 5.36 5.57 5.34 n.a. n.a. n.a. 5.34 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 3.43 5.32 5.94 5.85 5.67 5.83 5.55 5.72 5.61 5.57 5.55 5.56 22 2-year 4.05 5.94 6.15 6,27 6.03 6.23 5.91 6.12 5.99 5.94 5.91 5.93 23 3-year 4.44 6.27 6.25 6.45 6.21 6.41 6.08 6.29 6.16 6.10 6.08 6.09 24 5-year 5.14 6.69 6.38 6.64 6.39 6.60 6.27 6.48 6.35 6.30 6.28 6.29 25 7-year 5.54 6.91 6.50 6.76 6.52 6.73 6.42 6.62 6.50 6.45 6.43 6.44 26 10-year 5.87 7.09 6.57 6.87 6.64 6.83 6.53 6.73 6.61 6.55 6.54 6.55 27 20-year 6.29 7.49 6.95 7.14 6.97 7.17 6.90 7.07 6.95 6.92 6.92 6.92 28 30-year 6.59 7.37 6.88 7.03 6.84 7.03 6.81 6.95 6.85 6.83 6.83 6.83 Composite 29 More than 10 years (long-term) 6.45 7.41 6.93 7.13 6.94 7.13 6.87 7.04 6.92 6.89 6.89 6.89 STATE AND LOCAL NOTES AND BONDS Moody's series13 30 Aaa 5.38 5.77 5.80 5.83 5.64 5.57 5.52 5.54 5.51 5.48 5.50 5.56 31 Baa 5.83 6.17 6.10 5.96 5.85 5.79 5.73 5.78 5.76 5.71 5.76 5.72 32 Bond Buyer series 5.60 6.18 5.95 5.92 5.76 5.87 5.72 5.76 5.70 5.73 5.72 5.75 CORPORATE BONDS 33 Seasoned issues, all industries15 7.54 8.26 7.83 7.95 7.76 7.95 7.68 7.87 7.75 7.72 7.69 7.69 Rating group 34 Aaa 7.22 7.97 7.59 7.65 7.46 7.66 7.39 7.58 7.46 7.43 7.40 7.39 35 Aa 7.40 8.15 7.72 7.82 7.63 7.82 7.58 7.75 7.64 7.61 7.59 7.58 36 A 7.58 8.28 7.83 7.97 7.77 7.95 7.70 7.88 7.76 7.74 7.71 7.70 37 Baa 7.93 8.63 8.20 8.35 8.18 8.35 8.07 8.27 8.14 8.10 8.08 8.07 38 A-rated, recently offered utility bonds 7.46 8.29 7.86 8.07 7.87 8.06 7.83 7.96 7.77 7.87 7.82 7.86 MEMO Dividend-price ratio17 39 Common stocks 2.78 2.82 2.56 2.28 2.22 2.20 2.11 2.16 2.13 2.13 2.10 2.09 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. A1 rating. Based on Thursday figures. 5. Quoted on a discount basis. 15. Daily figures from Moody's Investors Service. Based on yields to maturity on 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 NonfinancialS tatistics • January 1997 1.36 STOCK MARKET Selected Statistics 1996 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading volume (averages of daily figures)1 Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 249.71 254.16 291.18 346.46 346.73 347.50 354.84 358.32 345.06 354.59 360.96 373.54 2 Industrial 300.10 315.32 367.40 435.92 439.55 441.99 452.63 458.30 438.58 444.91 459.69 473.98 3 Transportation 242.68 247.17 270.14 315.29 324.77 326.42 334.66 331.57 316.57 321.61 323.12 332.80 4 Utility 114.55 104.96 110.64 135.51 122.83 122.44 124.86 123.60 122.66 122.37 121.12 130.04 5 Finance 216.55 209.75 238.48 290.97 290.44 287.92 290.43 294.42 287.89 302.95 308.16 324.42 6 Standard & Poor's Corporation (1941 -43 = tor 451.63 460.42 541.72 649.54 647.07 647.17 661.23 668.50 644.06 662.68 674.88 701.46 7 American Stock Exchange (Aug. 31, 1973 = 50)3 438.77 449.49 498.13 562.34 565.69 580.60 600.93 591.99 550.16 554.88 564.87 574.46 Volume of trading (thousands of shares) 8 New York Stock Exchange 263,374 290,652 345,729 434,607 426,198 419,941 404,184 392,413 398,245 333,343 400,951 420,835 9 American Stock Exchange 18,188 17,951 20,387 27,107 22,988 24,886 28,127 23,903 21,281 17,916 19,449 18,780 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers4 60,310 61,160 76,680 77,090 78,308 81,170 86,100 87,160 79,860 82,980 89,300 n.a. Free credit balances at brokers5 11 Margin accounts6 12,360 14,095 16,250 15,840 15,770 15,780 16,890 16,800 17,700 17,520 17,940 n.a. 12 Cash accounts 27.715 28,870 34,340 34,700 33,113 33,100 33,760 33,775 32,935 32,680 35,360 n.a. 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 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. 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 May June July Aug. Sept. Oct. U.S. budget1 1 Receipts, total 1,153,535 1,257,737 1,355,213 90,122 151,995 103,893 99,996 157,668 99,950 2 On-budget 841,601 922,711 1,004,134 60,184 116,794 75,282 71,505 125,806 73,938 3 Off-budget 311,934 335,026 351,079 29,938 35,201 28,611 28,491 31,862 26,012 4 Outlavs, total 1,408,675 1,460,841 1,519,133 143,173 117,654 130,749 141,828 122,242 140,209 5 On-budget 1,142,088 1,181,469 1,230,469 114,317 103,997 104,214 113,840 90,253 113,584 6 Off-budget 266,587 279,372 288,664 28,856 13,657 26,535 27,987 31,989 26,625 7 Surplus or deficit (-), total -255,140 -203,104 -163,920 -53,051 34,340 -26,856 -41,831 35,426 -40,259 8 On-budget -300,487 -258,758 -226,335 -54,133 12,797 -28,932 -42,335 35,553 -39,646 9 Off-budget 45,347 55,654 62,415 1,082 21,544 2,076 504 -127 -613 Source of financing (total) 10 Borrowing from the public 248,619 185,344 171,288 20,633 -8,619 29,098 16,160 -5,892 15,588 11 Operating cash (decrease, or increase (—)) 6,283 16,564 -2,007 43,809 -33,519 1,262 23,705 -31,159 18,592 12 Other2 238 1,196 -5,361 -11,391 7,798 -3,504 1,966 1,625 6,079 MEMO 13 Treasury operating balance (level, end of period) 52,506 35,942 37,949 4,514 38,033 36,771 13,066 44,225 25,633 14 Federal Reserve Banks 17,289 6,848 8,620 3,757 7,701 6,836 5,149 7,700 5,897 15 Tax and loan accounts 35,217 29,094 29,329 757 30,332 29,936 7,917 36,525 19,736 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 NonfinancialS tatistics • January 1997 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 Aug. Sept. Oct. RECEIPTS 1 All sources 1,257,737 1,355,213 625,781 711,003 656,865 767,099 99,996 157,668 99,950 2 Individual income taxes, net 543,055 590,244 273,315 307,498 292,393 347,285 46,105 68,672 54,000 3 Withheld 459,699 499,927 240,063 251,398 256,916 264,177 43,834 39,537 48,866 4 Nonwithheld 160,433 175,855 42,029 132,001 45,521 162,782 4,007 30,629 5,639 5 Refunds 77,077 85,538 8,787 75,959 10,058 79,735 1,737 1,495 505 Corporation income taxes 6 Gross receipts 154,205 174,422 78,393 92,132 88,302 96.480 3,718 36,378 5,654 1 Refunds 13,820 17,418 7,747 10,399 7,518 9,704 644 1,274 4.792 X Social insurance taxes and contributions, net . . . 461,475 484,473 220,140 261,837 224,269 277,767 40,953 43,372 36,104 9 Employment taxes and contributions" 428,810 451,045 206,615 241,557 211,323 257,446 36,562 42,817 34,428 10 Unemployment insurance 28,004 28,878 11,177 18,001 10,702 18,068 3,994 206 1,330 11 Other net receipts' 4,661 4,550 2,349 2,279 2,247 2,254 397 348 346 12 Excise taxes 55,225 57,484 30,178 27,452 30,014 25,682 4.033 5,315 3.923 13 Customs deposits 20,099 19,301 11,041 8,848 9.849 8,731 1,807 1,604 1,432 14 Estate and gift taxes 15,225 14,763 7,067 7,425 7.718 8,775 1,566 1,698 1,547 15 Miscellaneous receipts4 22,274 31,944 13,395 16,211 11,839 12,087 2,459 1,902 2.081 OUTLAYS 16 All types 1,460,841 1,519,133 752,378 761,289 752,856 785,367 141,828 122,242r 140,209 17 National defense 281,642 272,066 141,885 135,648 132,887r 132,600 26,000 19,738 22,284 18 International affairs 17,083 16,434 11,889 4,797 6,908 8,074 969 1,007 4,112 19 General science, space, and technology 16,227 16,724 7.604 8,611 7,970 8,897 1,526 1,689 1,447 20 Energy 5,219 4,936 2,923 2,358 1,992 1,355 153 563 -207 21 Natural resources and environment 21,064 22.105 11,911 10,273 11,384 10,238 1,821 1,913r 1,758 22 Agriculture 15,046 9,773 7,623 4,039 3,072 71 627 3,309 2,347 23 Commerce and housing credit -5,118 -14,441 -4,042 -13,471 -3,941 -6,861 -1,678 1,559 -167 24 Transportation 38,066 39,350 21,835 18,193 20,725 18,291 3,583 3,537r 3,870 25 Community and regional development 10.454 10,641 6,283 5,073 5,569r 5,237 1,021 1,191 1,247 2b Education, training, employment, and social services 46,307 54,263 27,450 25,893 26,295 26,137 5,037 5,082 4,176 27 Health 107,122 115,418 54,147 59,057 57,111 59,957 10,352 10,004 10,378 28 Social security and Medicare 464,312 495,701 236.817 251,975 251.388 264,649 46,205 41,693 45,420 29 Income security 214,031 220,449 101,806 117,190 104,760 121,032 20,125 13,664 18,544 30 Veterans benefits and services 37,642 37,938 19,761 19,269 18,687 18,164 4,657 1,641 3,336 31 Administration of justice 15,256 16,223 7,753 8,051 8,091 9,021 1.460 1,382 1,311 32 General government 11.303 13.835 7,355 5,796 7,602 4,641 1,390 1,548 1,657 33 Net interest5 202,957 232.173 109,434 116,169 119,349 120,579 21,460 19,243 21,472 34 Undistributed offsetting receipts6 -37.772 -44,455 -20,066 -17,631 -26,995 -16,716 -2,880 -6.5221 -2,777 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 A96 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1994 1995 1996 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 4,721 4,827 4,891 4,978 5,001 5,017 5,153 5,197 5,260 2 Public debt securities 4,693 4.800 4,864 4,951 4,974 4,989 5,118 5,161 5,225 3 Held by public 3,480 3,543 3,610 3,635 3,653 3,684 3,764 3,739 n.a. 4 Held by agencies 1,213 1,257 1,255 1,317 1,321 1,305 1,354 1,422 n.a. 5 Agency securities 29 27 27 27 27 28 36 36 35 6 Held by public 29 27 26 27 27 28 28 28 n.a. 7 Held by agencies 0 0 0 0 0 0 8 8 n.a. 8 Debt subject to statutory limit 4,605 4,711 4,775 4,861 4,885 4,900 5,030 5,073 5,137 9 Public debt securities 4,605 4,711 4,774 4,861 4,885 4,900 5,030 5,073 5,137 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 5,500 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 TTyyppee aanndd hhoollddeerr 11999922 11999933 11999944 11999955 Q4 Ql Q2 Q3 1 Total gross public debt 4,177.0 4,535.7 4,800.2 4,988.7 4,988.7 5,117.8 5,161.1 5,224.8 By type 2 Interest-bearing 4,173.9 4,532.3 4,769.2 4,964.4 4,964.4 5,083.0 5,126.8 5,220.8 3 Marketable 2,754.1 2,989.5 3,126.0 3,307.2 3,307.2 3,375.1 3,348.4 3,418.4 4 Bills 657.7 714.6 733.8 760.7 760.7 811.9 773.6 761.2 5 Notes 1,608.9 1,764.0 1,867.0 2,010.3 2,010.3 2,014.1 2,025.8 2,098.7 6 Bonds 472.5 495.9 510.3 521.2 521.2 534.1 534.1 543.5 7 Nonmarketable' 1,419.8 1,542.9 1,643.1 1,657.2 1,657.2 1,707.9 1,778.3 1,8 )2.4 8 State and local government series 153.5 149.5 132.6 104.5 104.5 96.5 97.8 95.7 9 Foreign issues" 37.4 43.5 42.5 40.8 40.8 40.4 37.8 37.5 10 Government 37.4 43.5 42.5 40.8 40.8 40.4 37.8 37.5 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 155.0 169.4 177.8 181.9 181.9 183.0 183.8 184.2 13 Government account series3 1,043.5 1,150.0 1,259.8 1,299.6 1,299.6 1,357.7 1,428.5 1,454.7 14 Non-interest-bearing 3.1 3.4 31.0 24.3 24.3 34.8 34.3 4.0 Bv 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 1,304.5 1,353.8 1,422.4 16 Federal Reserve Banks 302.5 334.2 374.1 391.0 391.0 381.0 391.0 17 Private investors 2,839.9 3,047.4 3,168.0 3,294.9 3,294.9 3,382.8 3,347.3 18 Commercial banks 294.4 322.2 290.1 278.3 278.3 283.8 285.0 19 Money market funds 79.7 80.8 67.6 71.3 71.3 87.3 82.2 20 Insurance companies 197.5 234.5 240.1 250.8 250.8 256.0 258.0 21 Other companies 192.5 213.0 226.5 228.8 228.8 229.0 230.9 n.a. 22 State and local treasuries5'6 563.3 605.9 483.4 352.2 352.2 336.8 340.0 Individuals 23 Savings bonds 157.3 171.9 180.5 185.0 185.0 185.8 186.5 24 Other securities 131.9 137.9 150.7 162.7 162.7 161.4 161.1 25 Foreign and international7 549.7 623.0 688.7 862.1 862.1 930.2 958.6 26 Other miscellaneous investors6'8 673.5 658.3 840.5 903.7 903.7 912.5 845.0 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, corporate pension trust funds, dealers and brokers, certain U.S. Treasury 3. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. deposit accounts, and federally sponsored agencies. 4. Data for Federal Reserve Banks and U.S. government agencies and trust funds are 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 NonfinancialS tatistics • January 1997 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 1996 1996, week ending Item July Aug. Sept. Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 45,934 45,218 53,964 56,170 54,019 59,295 49,581 50,819 43,084 57,220 43,664 4411,,557755 Coupon securities, by maturity 2 Five years or less 92,815 91,717 101,720 100,599 95,349 108,974 98,959 105,597 97,239 90,604 104,279 98,278 3 More than five years 44,863 44,894 47,945 49,807 47,706 51,582 41,368 51,999 60,188 48,211 45.365 56,383 4 Federal agency 35,258 33,593 33,559 35,519 31,362 33,591 33,469 36,011 29,336 30,898 30,713 28,210 5 Mortgage-backed 34,569 35,793 39,470 34,219 63,451 36,515 21,814 37,357 63,617 36,951 29,804 29,510 By type of counterparty With interdealer broker 6 U.S. Treasury 106,573 106,811 118,528 116,945 118,229 128,047 111,151 116,513 116,899 111,875 110,756 113,359 7 Federal agency 664 713 796 697 933 826 604 905 926 865 833 719 8 Mortgage-backed 12,537 1133,,449966 13,533 12,083 21,414 1133,,110055 88,,001166 1111,,227722 2233,,880077 1133,,663311 1111,,775555 1100,,550055 With other 9 U.S. Treasury 77,040 75,018 85,100 89,631 78,845 91.805 78,757 91,902 83,613 84,161 82,552 82,877 10 Federal agency 34,593 32,880 32,763 34,822 30,429 32.765 32,865 35,106 28,410 30,033 29,881 27,491 11 Mortgage-backed 22,032 22,297 25,937 22.136 42,037 23,409 13,798 26,084 39,810 23,319 18,049 19,005 FUTURES TRANSACTIONS3 By type of deliverable security 12 U.S. Treasury bills 229 429 428 546 972 193 73 n.a. n.a. 189 28 78 Coupon securities, by maturity 13 Five years or less 1,607 1,649 1,710 2,982 2.003 1,713 1,161 1,286 1,095 832 975 1,063 14 More than five years 10,873 11,373 14.057r 14,372 15.658 15,990 10,848 13,306 12,559 11,173 9,707 13,339 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 1,898 2,194 3,555 2.053 3,328 2,410 5,657 3,341 3,890 3,825 1,659 3,114 19 More than five years 4,016 4,408 3,924 5,076 4,936 3,145 3,219 3,942 5,439 4,785 3,774 4,319 20 Federal agency 0 0 0 0 0 0 0 0 0 0 0 0 21 Mortgage-backed 688 848 1,132 1.129 341 759 1,340 2,728 1,263 592 1,160 719 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 A29 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1996 1996, week ending IItteemm July Aug. Sept. Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 15,044 13,673 4,530 15,801 7,620 3,213 3,325 -5,285 -4,184 4,113 3,209 Coupon securities, by maturity 2 Five years or less -9,294 -3,839 -3,592 -6,217 -8,083 -2,870 22 -1,272 -1,113 -6,003 6,925 3 More than five years -19,269 -14,771 -21,281 -18,857 -20,885 -21.048 -22,265 -22,724 -18,641 -16,180 -15,453 4 Federal agency 22,053 22,836 20,899 16,832. 23,053 21,896 17,969 23,845 26,331 21,897 27,301 5 Mortgage-backed 38,241 36,468 36,981 34,550 35,138 38,513 37,390 38,786 37,679 39,210 39,250 NET FUTURES POSITIONS4 By type of deliverable security 6 U.S. Treasury bills -2,592 -4,401 -963 -3,352 -1,009 -224 -535 -622 -935 -1,311 -1,447 Coupon securities, by maturity 7 Five years or less -1,701 -473 1,741 2,501 2,134 2,693 753 632 1,009 1,423 268 8 More than five years -13,999 -19,325 -7,520 -8,575 -5,893 -7,350 -7,957 -8,577 -10,030 -8,214 -11,002 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 tvpe 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 -1,205 -647 -992 -522 -915 -1,109 -1,018 -1,275 -785 -1,678 -2,554 13 More than five years 2,650 2,759 -1,021 -2,542 -2,281 -702 672 -858 -518 -685 -2,424 14 Federal agency 0 0 0 0 0 0 0 0 0 0 0 15 Mortgage-backed 2,614 2,003 1,620 2,142 1,947 1,539 1,070 1,629 2,172 2,025 2,605 Financing5 Reverse repurchase agreements 16 Overnight and continuing 260,875 280,269 269,777 280.478 274,380 272,331 251,905 276,218 240,183 270,797 246,917 17 Term 477,948 480,446' 450,345 424,900 460,411 450,714 454,690 450,007 498,531 475,818 512,144 Securities borrowed 18 Overnight and continuing 181,614 179,112 187,938 178,612 185,212 191,774 194,426 184,764 184,142 184,313 179,717 19 Term 60,925 67,680 66,776 66,898 63,622 67,570 64,159 73,646 75,365 72,697 74,481 Securities received as pledge 20 Overnight and continuing 4,636 4,034 4,067 4,065 4,253 3,943 3,989 4,090 4,047 4,151 3,406 21 Term 51 78 59 72 66 63 53 43 47 31 31 Repurchase agreements 22 Overnight and continuing 554,486 580,621 569,666 580,223 565,807 576,726 546,867 588,660 566,086 583,589 574,134 23 Term 421,168 429,700' 391,841 362,530 399,657 395,454 400,288 387,463 434,487 421,972 459,694 Securities loaned 24 Overnight and continuing 4,471 4,210 3,864 4,502 3,830 3,521 3,786 3,993 3,136 4,166 3,951 25 Term 3,258 3,541 3,567 3,495 3,574 3,597 n.a. 3,572 n.a. n.a. n.a. Securities pledged 26 Overnight and continuing 38,698 41,671 44,798 43,127 42,761 41,084 51,004 45,498 43,289 44,173 42,334 27 Term 6,917 5,795 6,752 6,010 6,695 6,728 6,864 7,305 6,981 6,975 6,839 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 15,850r 20,493' 15,622 21,166' 16,434 13,243 15,026 14,216 13,309 14,381 15.042 MEMO: Matched book6 Securities in 31 Overnight and continuing 270,197 278,385 263,184 269,482 267,460 267,173 249,461 265,784 244,183 263,374 249,688 32 Term 467,911 476,457' 446,548 423,128 458,967 446,364 442,941 453,206 496,432 476,050 506,764 Securities out 33 Overnight and continuing 363,148 369,543 359,617 363,172 356,988 358,125 344,910 383,133 361,673 377,347 355,765 34 Term 370,555 384,256 349,869 322,971 362,156 350,491 353,714 347,930 386,457 375,578 409,703 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 oifering. 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 NonfinancialS tatistics • January 1997 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1996 AAggeennccyy 11999922 11999933 11999944 11999955 Apr. May June July Aug. 1 Federal and federally sponsored agencies 483,970 570,711 738,928 844,611 n.a. 868,599 879,355 n.a. 2 Federal agencies 41,829 45,193 39,186 37,347 31,449 31,029 31,448 30,939 3 Defense Department1 7 6 6 6 6 6 6 6 4 Export-Import Bank2'3 7,208 5,315 3,455 2,050 2,015 2,015 1,853 1,853 5 Federal Housing Administration4 374 255 116 97 56 56 62 62 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 n.a. n.a. n.a. 8 Tennessee Valley Authority 23,580 29,885 27,536 29,429 29,072 28,952 29,465 28,956 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 442,141 523.452 699.742 807,264 832,823 837,570 847,807 854.461 861,564 11 Federal Home Loan Banks 114,733 139,512 205,817 243,194 242,437 243,389 249,240 251,169 253,847 12 Federal Home Loan Mortgage Corporation 29,631 49,993 93,279 119,961 136,185 141,248 143,363 146.534 148.729 13 Federal National Mortgage Association 166,300 201,112 257,230 299,174 306,361 305,050 308,385 310,503 312,374 14 Farm Credit Banks8 51,910 53,123 53,175 57,379 60,815 61,197 62,182 60,294 60,219 15 Student Loan Marketing Association9 39,650 39,784 50,335 47,529 47,052 46,735 44,718 46,053 46,459 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 Corporation" 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 66,079 64,931 63,654 62,233 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 7.202 5,309 3,449 2,044 2,009 2,009 1,847 1,847 21 Postal Service6 10,440 9.732 8,073 5,765 300 n.a. n.a. 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 20,625 19,575 26 Rural Electrification Administration 18,172 17,578 17,392 17,144 16,940 16,944 16,952 16,844 27 Other 64,436 45,864 37,984 29,513 25,815 24,964 24,230 23,967 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 Mar. Apr. May June July Aug. Sept. Oct 1 All issues, new and refunding1 279,945 153,950 145,657 15,794 13,673 15,647 17,496 11,819 12,502 11,635 16,296 By type of issue 2 General obligation 90,599 54,404 56,980 4,944 5,145 5,491 6,709 4,158 4,104 3,488 5,610 3 Revenue 189,346 99,546 88,677 10,850 8,528 10,156 10,787 7,661 8,398 8,147 10,686 By type of issuer 4 State 27,999 19,186 14,665 910 818 2,803 1,038 672 1,180 870 1,912 5 Special district or statutory authority" 178,714 95,896 93,500 10,522 10,097 10,313 10,722 7,597 8,432 8,096 10,435 6 Municipality, county, or township 73,232 38,868 37,492 4,362 2,758 2,531 5,736 3,550 2,890 2,669 3,949 7 Issues for new capital 91,434 105,972 102,390 10,599 9,767 9,468 14,193 8,817 7,133 7,840 11,928 By use of proceeds 8 Education 16,831 21,267 23,964 1,896 2,241 2,840 3,396 2,200 2,320 1,521 2,656 9 Transportation 9,167 10,836 11,890 1,281 964 799 1,400 580 622 846 2,897 10 Utilities and conservation 12,014 10,192 9,618 981 613 1,375 972 693 409 785 1,388 11 Social welfare 13,837 20,289 19.566 2,724 1,796 1,633 3,086 2.589 2,412 2,041 1,450 12 Industrial aid 6,862 8.161 6,581 713 618 382 610 392 271 581 520 13 Other purposes 32,723 35.227 30,771 3.004 3,535 2,439 4,729 2,363 1,099 2,066 3,017 1. Par amounts of long-term issues based on date of sale. SOURCE. Securities Data Company beginning January 1990; Investment 2. Includes school districts. Dealer's Digest before then. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1996 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999933 11999944 11999955 oorr iissssuueerr Feb. Mar. Apr. May June July Aug. Sept. 1 All issues' 769,088 583,240 n.a. 61,890r 55,792 49,029 69,220r 66,700 38,917 42,424r 57,816 2 Bonds2 646,634 498,039 n.a. 52,936r 48,363 36,333 55,814r 53,786 31,483 36,82lr 51,301 By type of offering 3 Public, domestic 487,029 365,222 408,806 45,953r 41,526 30,574 46,745r 45,138 25,718 31,586r 42,648 4 Private placement, domestic3 121,226 76,065 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 38,379 56,755 76,910 6,984 6,837 5,759 9,069 8,648 5,765 5,235 8,653 By industry group 6 Manufacturing 88,160 43,423 42,950 2,522 3,435 2,503 5,887 5,942 3,861 2,697 3,908 7 Commercial and miscellaneous 58,559 40,735 37,139 2,840 3,803 2,663 4,933 4,272 2,720 4,002r 3,155 8 Transportation 10,816 6,867 5,727 584 137 120 819 906 525 293 620 9 Public utility 56,330 13,322 11,974 965 788 444 691 1.144 1,046 129 229 10 Communication 31,950 13,340 18,158 2,641 2,253 724 1,097 2,231 647 1,375 829 11 Real estate and financial 400,820 380,352 369.769 43,385r 37,948 29,879 42,386r 39,292 22,684 28,325r 42,561 12 Stocks" 122,454 85,155 n.a. 8,954 7,429 12,696 13,406 12,914 7,434 5,603 6,515 By type of offering 13 Public preferred 18.897 12,570 10.964 3,258 967 2,000 1,660 3,309 1,647 1,164 1,890 14 Common 82,657 47,828 57,809 5,696 6,462 10.696 11,746 9,605 5.787 4,439 4,625 15 Private placement' 20,900 24,800 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 22,271 17,798 1,633 2,051 3,982 3,294' 2,649 1,740r 984 774 17 Commercial and miscellaneous 25,761 15,713 n a. 2,512 3,597 4,125 5,103 6.629 2,549 2,070 2,957 18 Transportation 2,237 2,203 141 232 37 322 190 104 143 0 19 Public utility 7,050 2,214 809 319 149 297r 569 299 305r 253 20 Communication 3,439 494 140 100 144 1,205 837 1,073 51 54 21 Real estate and financial 61,004 46,733 3,719 1,130 4,258 3,184r 2,039 1.668 2,050r 2,478 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 Nonfinancial Statistics • January 1997 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets' Millions of dollars 1996 IItteemm 11999944 11999955 Feb. Mar. Apr. May June July Aug. Sept. 1 Sales of own shares2 841,286 871,415 90,370 93,856 101,310 96,501 88,115 93,053 86,225 84,171 2 Redemptions of own shares 699,823 699,497 60,398 65,748 81,005 69,419 69,072 76,485 64,993 65,601 3 Net sales3 141,463 171,918 29,972 28,108 20,305 27,082 19,044 16,568 21,232 18,570 4 Assets4 1,550,490 2,067,337 2,181,711 2,212,517 2,293,491 2,356,307 2,363,024 2,297,216 2,366,030 2,474,339 5 Cash5 121,296 142,572 144,520 142,697 148,777 145,554 144,275 148,647 155,129 156,689 6 Other 1,429,195 1,924,765 2,037,191 2,069,820 2,144,713 2,201,752 2,218,749 2,147,337 2,210,901 2,317,651 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 Q4 Qi Q2 Q3 Q4 Ql Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 464.4 529.5 586.6 570.9 560.0 562.3 612.5 611.8 645.1 655.8 n.a. 2 Profits before taxes 464.3 531.2 598.9 572.4 594.5 589.6 607.2 604.2 642.2 644.6 n.a. 3 Profits-tax liability 163.8 195.3 218.7 213.5 217.3 214.2 224.5 218.7 233.4 236.4 n.a. 4 Profits after taxes 300.5 335.9 380.2 358.8 377.2 375.3 382.8 385.5 408.8 408.1 n.a. 5 Dividends 197.3 211.0 227.4 218.5 221.7 224.6 228.5 234.7 239.9 243.1 245.2 6 Undistributed profits 103.2 124.8 152.8 140.3 155.5 150.8 154.3 150.8 168.9 165.1 n.a. 7 Inventory valuation -6.6 -13.3 -28.1 -22.8 -51.9 -42.3 -9.3 —8.8 -17.4 -11.0 2.2 8 Capital consumption adjustment 6.7 11.6 15.9 21.3 17.4 15.0 14.6 16.5 20.4 22.3 23.8 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 Liabilities' Billions of dollars, end of period; not seasonally adjusted 1994 1995 1996 AAccccoouunntt 11999933 11999944 11999955 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ASSETS 1 Accounts receivable, gross2 482.8 551.0 614.6 551.0 568.5 586.9 594.7 614.6 621.8 631.4 2 Consumer 116.5 134.8 152.0 134.8 135.8 141.7 146.2 152.0 151.9 154.6 3 Business 294.6 337.6 375.9 337.6 351.9 361.8 362.4 375.9 380.9 383.7 4 Real estate 71.7 78.5 86.6 78.5 80.8 83.4 86.1 86.6 89.1 93.1 5 LESS; Reserves for unearned income 50.7 55.0 63.2 55.0 58.9 62.1 61.2 63.2 61.5 65.1 6 Reserves for losses 11.2 12.4 14.1 12.4 12.9 13.7 13.8 14.1 14.2 14.9 7 Accounts receivable, net 420.9 483.5 537.3 483.5 496.7 511.1 519.7 537.3 546.1 551.4 8 All other 170.9 183.4 210.7 183.4 194.6 198.1 198.1 210.7 212.8 216.1 9 Total assets 591.8 666.9 748.0 666.9 691.4 709.2 717.8 748.0 758.9 767.5 LIABILITIES AND CAPITAL 10 Bank loans 25.3 21.2 23.1 21.2 21.0 21.5 21.8 23.1 23.5 26.2 11 Commercial paper 159.2 184.6 184.5 184.6 181.3 181.3 178.0 184.5 184.8 183.0 Debt 12 Owed to parent 42.7 51.0 62.3 51.0 52.5 57.5 59.0 62.3 62.3 61.0 13 Not elsewhere classified 206.0 235.0 284.7 235.0 254.4 264.4 272.1 284.7 291.4 301.8 14 All other liabilities 87.1 99.5 106.2 99.5 102.5 102.1 102.4 106.2 105.7 101.9 15 Capital, surplus, and undivided profits 71.4 75.7 87.2 75.7 79.7 82.5 84.4 87.2 91.1 93.6 16 Total liabilities and capital 591.8 666.9 748.0 666.9 691.4 709.2 717.8 748.0 758.9 767.5 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 Credit' Millions of dollars, amounts outstanding, end of period 1996 TTyyppee ooff ccrreeddiitt Apr. May June July Aug.r Sept. Seasonally adjusted 1 Total 546,103 615,618 691,616 708,343 710,367 719,536 724,717 731,076 727,883 2 Consumer 160,227 176,085 198,861 205,184 207,027 210,341 212,814 211,685 209,394 3 Real estate2 72,043 78,910 87,077 89,943 90,180 93,917 95,088 96,279 96,780 4 Business 313,833 360,624 405,678 413,216 413,160 415,278 416,815 423,112 421,709 Not seasonally adjusted 5 Total 550,751 620,975 697,340 710,762 712,429 722,597 718,052 724,942 724,005 6 Consumer 162,770 178,999 202,101 203,532 205,678 209,851 210,777 210,924 210,228 7 Motor vehicles 56,057 61,609 70,061 73,810 74,327 74,286 75,038 74,433 75,323 8 Other consumer3 60,396 73,221 81,988 79,489 80,435 80,344 81,311 81,148 80,623 9 Securitized motor vehicles4 36,024 31,897 33,633 30,476 31,435 34,826 33,731 34,636 32,814 10 Securitized other consumer4 10,293 12,272 16,419 19,757 19,481 20,395 20,697 20,707 21,468 11 Real estate2 71,727 78,479 86,606 89,975 90,182 93,100 95,336 96,952 96,650 12 Business 316,254 363,497 408,633 417,255 416,569 419,646 411,939 417,066 417,127 13 Motor vehicles 95,173 118,197 133,277 134,500 134,196 137,477 132,543 135,703 139,109 14 Retail loans5 18,091 21,514 25,304 27,954 27,151 29,032 28,373 28,404 28,872 15 Wholesale loans6 31,148 35,037 36,427 32,155 31,360 32,095 26,506 28,188 30,294 16 Leases 45,934 61,646 71,546 74,391 75,685 76,350 77,664 79,111 79,943 17 Equipment 145,452 157,953 177,297 178,507 178,151 178,983 177,949 176,423 174,767 18 Loans7 43,514 49,358 59,109 57,576 57,327 58,788 57,621 53,050 53,644 19 Leases 101,938 108,595 118,188 120,931 120,824 120,195 120,328 123,373 121,123 20 Other business8 53,997 61,495 65,363 69,193 68,112 67,210 66,548 70,706 69,591 21 Securitized business assets4 21,632 25,852 32,696 35,055 36,110 35,976 34,899 34,234 33,660 22 Retail loans 2,869 4,494 4,723 4,367 4,790 4,688 4,613 4,700 4,600 23 Wholesale loans 10,584 14,826 21,327 24,327 25,028 24,950 23,988 23,151 22,586 24 Leases 8,179 6,532 6,646 6,361 6,292 6,338 6,298 6,383 6,474 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 • January 1997 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1996 IItteemm 11999933 11999944 11999955 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 163.1 170.4 175.8 175.2 179.5 180.1 194.0 184.8 187.1 183.9 2 Amount of loan (thousands of dollars) 123.0 130.8 134.5 133.2 137.6 139.4 144.2 141.1 141.7 139.0 3 Loan-to-price ratio (percent) 78.0 78.8 78.6 78.4 79.3 78.7 76.2 77.7 77.2 77.7 4 Maturity (years) 26.1 27.5 27.7 27.1 27.2 25.8 26.7 27.2 27.7 27.4 5 Fees and charges (percent of loan amount)" 1.30 1.29 1.21 1.17 1.16 1.31 1.25 1.38 1.28 1.11 Yield (percent per year) 6 Contract rate' 7.03 7.26 7.65 7.57 7.61 7.75 7.80 7.85 7.77 7.76 7 Effective rate1'3 7.24 7.47 7.85 7.76 7.80 8.05 8.01 8.08 7.98 7.95 8 Contract rate (HUD series)4 7.37 8.58 8.05 8.22 8.34 8.37 8.28 8.45 8.23 8.01 SECONDARY MARKETS Yield fpercent per year) 9 FHA mortgages (Section 203)5 7.46 8.68 8.18 8.52 8.57 8.55 8.56 8.58 8.56 8.00 10 GNMA securities6 6.65 7.96 7.57 7.63 7.81 7.91 7.84 7.68 7.85 7.53 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 190,861 222,057 253,511 263,809 267,330 270,042 272,458 275,133 278,003 279,544 1? FHA/VA insured 23,857 27,558 28,762 29,132 30,442 30,936 30,830 30,803 30,840 30,815 13 Conventional 167,004 194.499 224.749 234,677 236,888 239,106 241,628 244,330 247,163 248,729 14 Mortgage transactions purchased (during period) 92,037 62,389 56,598 5,339 6,720 5,421 5,345 5,360 5,353 4,235 Mortgage commitments Fduring period) 15 Issued7 92,537 54,038 56,092 5,599 5,228 5,280 5,036 5,673 4,264 5,199 16 To sell8 5,097 1,820 360 0 13 0 0 0 53 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f" 17 Total 55,012 72,693 107,424 119,520 121,058 123,806 125,574 127,345 129,426R 132,260 18 FHA/VA insured 321 276 267 216 212 209 205 201R 197R 195 19 Conventional 54,691 72,416 107,157 119,304 120,846 123,597 125,369 127,144R 129,229R 132,065 Mortgage transactions (during period) 20 Purchases 229,242 124,697 98,470 12,740 12,385 10,266 9,934 9,643 8,687 9,538 21 Sales 208,723 117.110 85,877 11,958 11,904 9,969 9,496 8,994 8,167 8,797 22 Mortgage commitments contracted (during period)9 274,599 136,067 118,659 13,009 11,075 11,164 10,626 8,992 9,315 8,214 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 Qi Q2P 1 All holders 4,091,827 4,266,657 4,472,693 4,581,594 4,657,832 4,706,654 4,775,361 4,859,561 By type of propertx 2 One- to four-family residences 3,036,251 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 6 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 banks" 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 H) 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 ? 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 trusts' 1,433,183 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 9 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 161,136 206.159 245,844 260,033 268,420 283,294 294,974 302,616 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 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 Nonfinancial Statistics • January 1997 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 1996r HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999933 11999944 11999955 Apr. May June July Aug. Sept. Seasonally adjusted 11 TToottaall 844,118 966,457 1,103,296 1,144,519 1,151,148 1,158,246 1,170,069 1,175,111 1,172,501 22 AAuuttoommoobbiillee 279,786 317,182 350,848 361,158 362,298 367,039 372,398 373,087 372,120 33 RReevvoollvviinngg 287,011 339,337 413,894 437,862 443,451 445,104 452,097 454,625 455,618 44 OOtthheerr22 277,321 309,939 338,554 345,499 345,399 346,102 345,574 347,399 344,763 Not seasonally adjusted 5 Total 863,924 990,247 1,131,881 1,133,764 1,141,378 1,151,082 1,160,314 1,171,945 1,176,500 By major holder 6 Commercial banks 399,683 462,923 507,753 506,600 505,211 507,715 511,219 517.829 518,605 7 Finance companies 116,453 134,830 152,624 153,299 155,893 155,864 156,433 155,581 155,946 8 Credit unions 101,634 119,594 131,939 132,803 134,562 136,055 138,249 140,635 141,662 9 Savings institutions 37,855 38,468 40,106 41,145 41,617 41,089 42,100 42,200 43,000 10 Nonfinancial business3 77,229 86,621 85,061 73,744 74,638 72,018 71,148 71,021 68,576 11 Pools of securitized assets4 131,070 147,811 214,398 226,173 229,457 238,341 241,165 244,679 248,711 By major type of c redit5 12 Automobile 281,538 319,715 354,055 356,704 359,614 365,552 371,223 374,535 375,520 13 Commercial banks 122,000 141,895 149,094 150,060 150,524 152,921 154,639 155,984 155,443 14 Finance companies 56,057 61,609 70,626 73,810 74,327 74,286 75,110 74,433 75,323 15 Pools of securitized assets4 39,561 36,376 44,411 40,713 41,180 44,694 45,100 45,589 45,184 16 Revolving 302,201 357,307 435,674 431,144 437,581 440,229 445,715 451,664 455,552 17 Commercial banks 149,920 182,021 210,298 201,122 203.432 204,049 207,926 211,026 213,809 18 Nonfinancial business3 50,125 56,790 53.525 44,526 45,182 42,574 41,715 41,258 38,816 19 Pools of securitized assets4 80,242 96,130 147,934 161,396 164,509 168,844 170,966 174,026 177,406 20 Other 280,185 313,225 342,152 345,916 344,183 345,301 343,376 345,746 345,428 21 Commercial banks 127,763 139,007 148,361 155,418 151,255 150,745 148,654 150,819 149,353 22 Finance companies 60,396 73,221 81,998 79,489 81,566 81,578 81,323 81,148 80,623 23 Nonfinancial business3 27,104 29,831 31,536 29,218 29,456 29,444 29,433 29,763 29,760 '24 Pools of securitized assets4 11,267 15,305 22,053 24,064 23,768 24.803 25,099 25,064 26,121 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. Data in this table also appear in the Board's G.19 (421) monthly 4. Outstanding balances of pools upon which securities have been issued; these balances statistical release. For ordering address, see inside front cover, are no longer carried on the balance sheets of the loan originator. 2. Comprises mobile home loans and all other loans that are not included in automobile or 5. Totals include estimates for certain holders for which only consumer credit totals are revolving credit, such as loans for education, boats, trailers, or vacations. These loans may be available. secured or unsecured. 1.56 TERMS OF CONSUMER CREDIT1 Percent per year except as noted 1996 IItteemm 11999933 11999944 11999955 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks2 1 48-month new car 8.09 8.12 9.57 n.a. n.a. 8.93 n.a. 9.11 2 24-month personal 13.47 13.19 13.94 n.a. n.a. 13.52 n.a. n.a. 13.37 n.a. Credit card plan 3 All accounts n.a. 15.69 16.02 n.a. n.a. 15.44 n.a. n.a. 15.65 4 Accounts assessed interest n.a. 15.77 15.79 n.a. n.a. 15.41 n.a. n.a. 15.64 n.a. Auto finance companies 5 New car 9.48 9.79 11.19 9.77 9.64 9.37 9.53 9.81 10.49 10.52 6 Used car 12.79 13.49 14.48 13.19 13.26 13.49 13.62 13.77 13.92 13.87 OTHER TERMS3 Maturity (months) 7 New car 54.5 54.0 54.1 51.8 51.5 50.8 50.4 50.5 51.4 51.9 8 Used car 48.8 50.2 52.2 52.0 51.8 51.7 51.6 51.7 51.3 51.0 Loan-to-value ratio 9 New car 91 92 92 91 91 91 91 91 92 91 10 Used car 98 99 99 98 99 99 100 100 100 100 Amount financed (dollars) 11 New car 14,332 15,375 16,210 16,520 16,605 16,686 16,854 16,926 16,927 17,182 12 Used car 9,875 10,709 11,590 11.934 12,024 12,233 12,249 12,242 12,132 12,108 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. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, 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 Q4 Qt Q2 Q3 Q4 Ql 02 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 183.8 198.4 254.6 368.7 380.6 399.1 366.1 401.2 414.9 340.2 435.9 391.0 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 Private 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 i .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 NonfinancialS tatistics • January 1997 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1994 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999911 11999922 11999933 11999944 11999955 Q4 Q1 Q2 Q3 Q4 Q1 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 UUUUSSSS.... 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.l (780) quarterly statistical release, tables F.2 through F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A39 1.58 SUMMARY OF FINANCIAL TRANSACTIONS' 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 Qi Q2 Q3 Q4 Qi 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 1.1 ft 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 -20.4 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 i,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 1ft 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 7 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 -1.9 -2.1 .0 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 -1.0 -1.1 -.9 5/ 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 1,446.8 1,772.1 2,451.3 2,202.3 2,775.1 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.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.6 and F.7. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • January 1997 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1994 1995 1996 tyyz Q4 Ql Q2 Q3 Q4 Ql 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 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 Bv 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 7 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 11 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 16 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 1/ 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 19 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 22 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 26 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 27 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 33 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 36 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 37 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 Finance 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. 1 (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 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 / Federal government 236.0 231.7 207.6 186.2 207.6 204.2 198.2 192.2 186.2 181.2 177.7 8 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 IS Banks in US. 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 21 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 5533 3322,,771199..00 3355,,227799..44 3377,,334422..77 3377,,334422..77 3388,,006677..55 3399,,002200..22 3399,,888877..22 4411,,661166..77 4422,,332277..77 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 (—) 5'/ 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 • January 1997 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1987=100, except as noted Apr. May July Aug. Sept. 1 Industrial production' Market groupings 2 3 Pro F d in u a c l t , s , to to ta t l a l 1 11 1 2 0 . . 7 0 1 1 1 1 8 5 . . 3 6 1 1 2 1 1 8 . . 4 3 1 12 2 4 0 . . 5 7 1 1 2 2 0 3 . . 0 4 1 1 2 2 0 4 . . 8 8 1 1 2 2 5 1 . . 1 3 1 12 2 6 2 . . 0 3 1 1 2 2 2 6 . .7 5 r 1 1 2 2 2 6 . . 4 4 r 1 12 2 6 3 . . 8 0 4 5 C Eq o u n i s p u m m e e n r t goods 1 1 0 1 9 7 . . 5 5 1 1 2 1 5 3 . . 3 7 1 1 1 3 5 1 . . 1 4 1 13 1 7 6 . . 3 6 1 13 1 6 5 . . 5 3 1 13 1 9 5 . . 2 9 1 1 3 1 9 6 . . 2 3 1 1 1 4 6 0 . . 8 8 1 1 1 4 7 2 . . 3 0 r r 1 1 4 1 2 6 . . 7 4 r r 1 1 1 4 6 3 . . 6 4 6 7 Ma I t n e t r e i r a m ls e diate 1 1 0 1 1 3 . . 8 8 1 1 0 2 7 2 . . 3 0 1 12 0 7 9 . . 4 0 1 12 0 9 9 . . 4 3 1 12 0 9 9 . . 1 6 1 1 3 0 0 8 . . 3 6 1 1 3 1 1 0 . .1 6 1 13 1 2 1 . . 6 3 1 1 3 09 2 . . 9 T r 1 13 1 3 0 . .6 6r r 1 13 1 3 1 . . 5 7 r r Industry groupings 112,3 119.7 126.2 129.1 129.5r 8 Manufacturing 80.6 83.3 82.3 82.3 82.3r 9 Capacity utilization, manufacturing (percent)' 10 Construction contracts'' 105.1 114.2 118.3 114.0 127.0 130.0 128.0 125.0 126.0 128.0 121.0 11 Nonagricultural employment, total4 1 9 0 4 8 . . 6 6 1 9 1 6 2 . . 9 0 1 9 1 8 5 . . 1 0 1 9 1 8 6 . . 3 3 1 9 1 8 6 . . 1 5 1 9 1 8 6 . . 1 6 r 1 9 1 8 7 . . 3 0 1 9 1 8 7 . . 4 2 r 1 9 1 8 7 . . 3 5 1 9 1 8 7 . . 5 8 r 1 9 1 8 7 . . 3 7 12 Goods-producing, total 95.1 96.4 97.2 96.5 96.2 96.2 96.3 96.3 96.2 96.3 96.0 13 Manufacturing, total 95.3 97.5 98.7 97.8 97.4 97.5 97.5 97.5 97.4 97.5r 97.2 14 Manufacturing, production workers 113.1 116.8 120.3 122.1 122.4r 122.6 123.0 123.3 123.6 123.9 123.9 15 Service-producing 141.3 148.4 157.7 162.9 163.5 164.3 165.2 166.6 166.8 167.7 168.7 16 Personal income, total 136.0 142.6 150.9 156.0 156.7 157.5 158.3 160.3 160.0 161.3 162.6 17 Wages and salary disbursements 119.3 124.9 130.4 132.5 131.8 134.4 135.1 135.8 135.8r 136.8r 136.8 18 Manufacturing 142.4 149.3 158.2 163.2 163.7 162.8 165.1 166.4 166.5r 167.3r 168.3 19 Disposable personal income 134.7 144.8 152.2 158.6 159.3 159.1 160.4 159.4 159.6 159.6r 160.8r 20 Retail sales1 Prices6 21 Consumer (1982-84=100) 144.5 148.2 152.4 154.9 155.7 156.3 156.6 156.7 157.0 157.3 157.8 22 Producer finished goods (1982=100) 124.7 125.5 127.9 129,4 130.1 130.6 131.1 131.7r 131.5 131.9 131.6 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 al so 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 1996r CCaatteeggoorryy 11999933 11999944 11999955 Mar. Apr. May June July Aug. Sept. Oct. HOUSEHOLD SURVEY DATA1 1 Civilian labor force- 129.200 131.056 132.304 133.655 133,361 133,910 133.669 134,181 133.885 134,340 134.574 Employment 2 Nonagricultural industries1 117.144 1 19,651 121.460 122.664 122,726 122,971 123,228 123,382 123,635 123.833 124.169 3 Agriculture 3,115 3.409 3.440 .3,487 3,368 3,491 3,382 3,502 3,421 3,535 3,457 Unemployment 4 Number 8.940 7,996 7,404 7.504 7,266 7,448 7,060 7,297 6.830 6,971 6,948 5 Rate (percent of civilian labor force) 6.9 6.1 5.6 5.6 5.4 5.6 5.3 5.4 5.1 5.2 5.2 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 110,730 114,172 117,203 118,750 118,922 119,332 119,537 119,772 120,052 120,017 120,227 7 Manufacturing 18.075 18,321 18.468 18.281 18.283 18,303 18,298 18,267 18,291 18,232 18,238 8 Mining 610 601 580 574 573 576 575 570 570 568 569 9 Contract construction 4.668 4,986 5.158 5,341 5,353 5,384 5,401 5,427 5,437 5,445 5,455 10 Transportation and public utilities 5.829 5,993 6,165 6,292 6.294 6,309 6,329 6,333 6,342 6,330 6,337 11 Trade 25.755 26.670 27.585 27.898 27,965 28,052 28,143 28,256 28,275 28,312 28,393 12 Finance 6,757 6,896 6.830 6.931 6,942 6,964 6,967 6.987 6,999 7,003 7,029 13 Service 30,197 31,579 33,107 34.039 34,117 34,285 34,378 34,448 34,532 34.588 34,707 14 Government 18.841 19,128 19.310 19,394 19,395 19,459 19,446 19,484 19,606 19,539 19,499 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 Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 122.5 123.4 125.4 126.8 147.7 149.1 150.6 152.0 82.9 82.8 83.3 83.4 2 Manufacturing 124.6 125.3 127.5 129.2 151.9 153.5 155.1 156.8 82.0 81.6 82.2 82.4 3 Primary processing3 117.1 116.7 118.6 120.0 136.1 136.9 137.8 138.6 86.1 85.2 86.1 86.6 4 Advanced processing 128.1 129.4 131.7 133.5 159.5 161.5 163.5 165.6 80.3 80.1 80.5 80.6 5 Durable goods 134.2 136.0 139.5 142.1 164.2 166.7 169.4 172.1 81.7 81.6 82.4 82.6 6 Lumber and products 105.8 104.6 108.9 108.5 120.9 121.7 122.4 123.1 87.5 85.9 89.0 88.2 7 Primary metals 118.8 118.9 119.6 120.2 129.5 130.3 131.4 132.4 91.8 91.2 91.0 90.8 8 Iron and steel 121.3 122.6 122.7 123.8 133.5 134.4 135.7 137.0 90.9 91.2 90.4 90.4 9 Nonferrous 115.3 113.8 115.3 115.2 124.0 124.8 125.5 126.3 93.0 91.2 91.8 91.2 10 Industrial machinery and equipment 186.8 195.3 201.8 209.3 212.0 218.1 224.5 231.2 88.1 89.5 89.9 90.5 11 Electrical machinery 182.9 186.3 189.0 190.3 213.9 221.8 229.9 238.3 85.5 84.0 82.2 79.9 12 Motor vehicles and parts 140.5 132.6 145.9 151.3 179.2 181.3 182.9 184.6 78.4 73.2 79.8 81.9 13 Aerospace and miscellaneous transportation equipment 79.0 84.0 85.8 88.4 129.3 128.6 128.1 127.6 61.1 65.3 67.0 69.3 14 Nondurable goods 113.9 113.5 114.2 115.0 138.4 139.0 139.6 140.1 82.3 81.7 81.8 82.1 15 Textile mill products 109.4 106.4 109.4 110.5 132.8 133.7 134.2 134.8 82.4 79.6 81.5 82.0 16 Paper and products 118.1 114.6 119.3 119.8 133.9 134.9 135.8 136.8 88.2 85.0 87.8 87.6 17 Chemicals and products 126.4 126.9 127.3 129.2 156.5 157.5 158.5 159.5 80.7 80.6 80.3 81.0 18 Plastics materials 123.1 126.9 132.2 137.1 138.6 139.9 89.7 91.6 94.6 19 Petroleum products 107.7 109.7 110.0 110.8 116.6 116.8 117.1 117.3 92.4 93.9 93.9 94.5 20 Mining 98.2 98.7 101.2 102.6 111.9 111.9 111.8 111.8 87.8 88.2 90.5 91.8 21 Utilities 124.1 126.7 127.1 124.3 135.6 136.0 136.5 137.0 91.5 93.2 93.1 90.7 22 Electric 123.7 126.4 127.0 124.9 133.0 133.4 133.9 134.5 93.1 94.8 94.8 92.9 1973 1975 Previous cycle3 Latest cycle6 1995 1996 High Low High Low High Low Oct. May June Julyr Aug/ Sept. Oct.p Capacity utilization rate (percent)" 1 Total industry 89.2 72.6 87.3 71.8 84.9 78.0 83.0 83.3 83.7 83.4 83.4 83.4 82.7 2 Manufacturing 88.9 70.8 87.3 70.0 85.2 76.6 82.2 82.1 82.6 82.5 82.3 82.3 81.6 3 Primary processing'3 92.2 68.9 89.7 66.8 89.0 77.9 86.1 86.1 86.8 86.6 86.6 86.5 86.0 4 Advanced processing4 87.5 72.0 86.3 71.4 83.5 76.1 80.5 80.5 80.8 80.8 80.6 80.5 79.8 5 Durable goods 88.8 68.5 86.9 65.0 84.0 73.7 81.7 82.1 82.9 82.6 82.6 82.4 81.4 6 Lumber and products 90.1 62.2 87.6 60.9 93.3 76.1 87.7 88.0 90.2 87.4 88.6 88.6 88.0 7 Primary metals 100.6 66.2 102.4 46.8 92.8 74.2 89.5 90.3 91.9 89.8 91.1 91.3 90.2 8 Iron and steel 105.8 66.6 110.4 38.3 95.7 72.0 86.3 89.2 91.2 89.9 90.7 90.4 88.9 9 Nonferrous 92.9 61.3 90.5 62.2 88.7 75.2 93.6 91.6 92.7 89.7 91.6 92.4 91.8 10 Industrial machinery and equipment 96.4 74.5 92.1 64.9 84.0 71.8 87.5 89.7 90.6 89.9 90.9 90.8 90.9 11 Electrical machinery 87.8 63.8 89.4 71.1 84.9 77.0 86.3 82.1 82.1 80.7 79.7 79.1 77.6 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 85.1 56.6 78.3 79.1 81.1 83.9 82.0 79.9 74.6 13 Aerospace and miscellaneous transportation equipment 77.0 66.6 81.1 66.9 88.4 78.8 61.8 66.9 67.1 68.4 69.1 70.3 70.6 14 Nondurable goods 87.9 71.8 87.0 76.9 86.7 80.3 82.7 82.0 82.0 82.3 81.8 82.0 81.8 15 Textile mill products 92.0 60.4 91.7 73.8 92.1 78.8 83.9 81.0 82.7 83.5 81.7 80.8 81.3 16 Paper and products 96.9 69.0 94.2 82.0 94.8 86.7 89.7 88.0 87.7 89.1 86.9 86.9 87.1 17 Chemicals and products 87.9 69.9 85.1 70.1 85.9 79.0 81.1 80.6 80.7 81.4 80.7 80.8 80.4 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 89.4 94.5 95.8 94.7 94.9 19 Petroleum products 96.7 81.1 89.5 68.2 88.5 84.6 91.8 93.8 94.2 93.4 94.7 95.3 96.1 20 Mining 94.4 88.4 96.6 80.6 86.5 86.1 87.8 89.8 91.9 90.3 92.6 92.5 91.6 71 Utilities 95.6 82.5 88.3 76.2 92.6 83.1 89.8 94.1 92.6 89.6 91.1 91.3 91.3 22 Electric 99.0 82.7 88.3 78.7 94.8 86.7 93.1 96.1 94.5 91.4 93.5 93.8 93.7 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 lixtures; 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 • January 1997 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1995 1996 pro- 1995 por- avg. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.1" Sept. Oct.p Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 121.9 122.2 122.6 122.8 122.5 124.2 123.6 124.5 125.4 126.4 126.3 126.8 127.2 126.6 2 Products 60.6 118.3 118.3 118.8 119.2 118.6 120.7 120.0 120.8 121.3 122.3 122.5 122.4 123.0 122.7 3 Final products 46.3 121.4 121.3 121.9 122.1 121.9 124.5 123.4 124.8 125.1 126.0 126.7 126.4 126.8 126.3 4 Consumer goods, total 28.6 115.1 114.9 115.9 115.7 114.6 116.6 115.3 115.9 116.3 116.8 117.3 116.4 116.6 115.8 Durable consumer goods 5.6 124.2 123.4 124.9 126.3 120.3 125.1 119.3 125.5 126.2 130.4 131.2 127.7 127.0 123.3 6 Automotive products 2.5 130.7 128.5 130.5 132.8 125.9 133.1 120.3 133.5 134.1 138.4 143.4 138.0 136.3 129.5 / Autos and trucks 1.6 131.4 128.6 129.8 132.1 124.1 133.5 111.1 135.9 135.4 138.9 149.6 141.2 136.4 126.1 8 Autos, consumer .9 103.1 100.2 100.2 99.5 92.8 99.7 77.0 104.1 106.2 110.4 116.1 111.1 107.4 91.8 y Trucks, consumer .7 181.7 179.1 182.8 190.6 180.4 194.4 173.! 192.7 187.3 189.2 209.3 194.7 188.0 188.1 10 Auto parts and allied goods .9 127.8 126.7 130.2 132.7 128.1 130.7 137.2 127.2 129.9 136.0 129.3 129.8 134.6 134.8 N Other 3.0 118.6 118.9 119.9 120.5 115.5 118.1 118.5 118.5 119.3 123.4 120.5 118.7 118.8 117.9 12 Appliances, televisions, and air conditioners .7 135.5 140.1 145.3 141.9 132.2 137.5 138.3 139.7 138.9 151.4 145.4 137.6 139.8 138.7 13 Carpeting and furniture .8 105.8 105.6 104.1 107.4 101.1 103.4 105.7 104.4 106.0 109.4 104.6 105.8 106.3 106.5 14 Miscellaneous home goods 1.5 118.2 116.9 117.6 118.3 116.2 117.7 116.9 117.1 118.2 118.7 118.4 117.6 116.5 114.9 13 Nondurable consumer goods 23.0 112.9 112.9 113.8 113.2 113.3 114.5 114.4 113.6 114.0 113.5 114.0 113.6 114.1 114.1 16 Foods and tobacco 10.3 111.3 111.1 110.9 110.6 110.6 112.0 112.3 112.2 112.0 111.7 112.1 111.1 111.9 111.9 17 Clothing 2.4 94.8 92.9 91.5 89.7 88.2 90.3 88.9 88.8 89.2 88.5 88.5 88.7 88.7 88.4 18 Chemical products 4.5 131.3 135.7 135.0 136.5 138.1 138.1 136.7 133.8 135.2 134.5 137.8 136.8 137.2 136.7 iy Paper products 2.9 106.6 106.6 108.4 106.3 104.9 106.0 105.8 106.1 107.2 106.3 108.2 108.5 109.0 108.7 20 Energy 2.9 116.5 113.1 121.1 119.5 121.0 122.6 123.9 121.8 121.8 121.6 117.4 119.2 119.3 120.2 21 Fuels .9 108.8 107.3 108.2 108.6 108.6 111.8 112.2 111.5 111.7 111.6 111.1 112.2 111.5 113.9 22 Residential utilities 2.1 119.6 115.4 126.6 124.1 126.1 127.2 128.8 126.2 126.0 125.7 120.0 122.1 122.5 122.7 23 Equipment 17.7 131.4 131.5 131.4 132.3 133.7 137.3 136.5 139.2 139.2 140.8 142.0 142.7 143.4 143.5 24 Business equipment 13.7 155.7 156.5 156.9 158.4 160.5 164.8 162.7 166.3 166.0 168.6 170.3 171.0 172.3 172.6 25 Information processing and related 5.7 198.1 206.5 208.1 209.4 213.3 220.5 221.6 224.9 226.2 232.0 233.4 236.3 240.6 243.2 26 Computer and office equipment 1.4 373.5 402.9 417.8 431.7 442.9 463.3 476.0 491.1 505.0 522.0 540.0 553.4 570.0 582.0 27 Industrial 4.0 127.5 128.6 129.1 129.5 129.6 131.3 130.3 129.9 129.4 128.2 128.0 128.8 128.5 128.4 28 Transit 2.6 136.3 122.3 119.6 124.5 128.1 133.2 121.2 136.1 133.4 136.9 144.2 141.3 140.9 136.0 2y Autos and trucks 1.2 140.1 135.7 134.2 135.3 129.1 136.0 113.6 140.0 138.2 141.9 151.8 143.6 138.5 129.3 30 Other 1.4 123.2 120.9 121.4 121.7 122.1 123.5 122.5 122.1 121.1 123.3 123.3 121.8 121.0 122.5 31 Defense and space equipment 3.3 65.9 64.4 62.9 62.0 61.6 63.1 64.2 64.0 64.3 63.7 64.5 64.8 64.7 64.4 32 Oil and gas well drilling .6 87.1 83.5 83.1 83.8 85.1 89.7 96.3 100.6 104.3 102.3 99.1 99.9 96.2 94.4 33 Manufactured homes .2 152.7 158.9 161.8 164.4 158.1 157.8 168.2 170.7 170.4 172.4 164.8 173.7 172.3 34 Intermediate products, total 14.3 109.0 109.2 109.3 110.1 108.5 109.3 109.6 108.6 110.1 111.3 109.9 110.6 111.7 111.5 35 Construction supplies 5.3 108.2 108.3 108.7 110.5 107.2 109.3 111.5 109.2 111.0 113.9 112.0 113.5 114.5 114.3 36 Business supplies 9.0 109.6 109.9 109.9 110.0 109.6 109.5 108.6 108.4 109.6 109.8 108.7 108.9 110.0 110.0 37 Materials 39.4 127.4 128.1 128.4 128.4 128.5 129.4 129.1 130.3 131.6 132.6 132.1 133.6 133.5 132.6 38 Durable goods materials 20.8 141.5 143.9 145.3 144.8 145.8 147.3 145.5 147.3 148.8 150.5 150.3 152.5 152.2 150.6 3y Durable consumer parts 4.0 138.5 138.6 140.1 139.3 140.6 141.1 132.5 142.1 143.5 148.3 147.6 151.8 149.6 143.6 40 Equipment parts 7.5 163.0 169.4 171.0 170.8 171.7 176.3 176.8 177.2 179.0 180.9 181.1 183.0 183.0 183.4 41 Other 9.2 126.2 126.5 127.9 127.2 128.2 127.8 127.4 126.8 128.1 128.2 127.9 129.5 129.7 128.7 42 Basic metal materials 3.1 125.7 124.3 128.1 126.6 125.7 123.7 124.4 123.7 123.9 125.1 123.5 125.3 126.1 125.0 43 Nondurable goods materials 8.9 119.8 118.7 116.6 117.4 115.7 116.1 116.3 118.8 120.0 120.1 121.1 119.9 119.8 120.1 44 Textile materials 1.1 109.2 107.3 104.8 103.3 100.3 101.8 103.0 104.9 106.2 106.3 108.2 106.8 104.9 106.1 43 Paper materials 1.8 120.5 121.4 114.3 115.2 113.4 113.4 113.7 118.9 118.7 115.2 120.9 119.0 116.1 117.5 46 Chemical materials 3.9 124.4 122.9 122.7 121.9 121.8 121.3 121.6 123.6 125.8 126.8 127.0 127.1 127.1 127.3 41 Other 2.1 116.5 114.6 114.1 118.9 115.2 117.1 116.4 117.8 118.2 119.7 117.5 114.9 118.0 116.9 48 Energy materials 9.7 106.6 105.5 105.7 106.0 105.9 106.1 108.2 107.0 108.1 108.7 106.3 108.6 109.0 108.4 4Y Primary energy 6.3 101.9 101.7 100.8 101.0 100.6 101.3 103.9 103.1 102.7 103.7 101.3 104.0 104.3 103.7 50 Converted fuel materials 3.3 116.0 113.1 115.4 116.2 116.6 115.5 116.7 114.9 118.9 118.7 116.2 117.8 118.2 117.7 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.2 121.5 121.9 122.3 122.5 122.4 123.8 123.9 124.1 125.0 126.0 125.6 126.4 126.8 126.6 32 Total excluding motor vehicles and parts 95.2 120.9 121.3 121.7 121.9 121.9 123.3 123.7 123.5 124.4 125.2 124.9 125.6 126.1 126.0 33 Total excluding computer and office equipment 98.2 118.2 118.1 118.4 118.5 118.0 119.5 118.7 119.5 120.2 121.1 120.8 121.2 121.3 120.6 34 Consumer goods excluding autos and trucks , 27.0 114.0 114.0 115.0 114.7 114.0 115.5 115.6 114.6 115.1 115.4 115.2 114.7 115.3 115.2 33 Consumer goods excluding energy 25.7 114.9 115.1 115.3 115.3 113.9 115.9 114.3 115.2 115.7 116.3 117.3 116.0 116.3 115.3 36 Business equipment excluding autos and trucks 12.5 157.0 158.4 159.0 160.5 163.5 167.5 167.5 168.7 168.6 171.1 172.0 173.6 175.6 176.8 37 Business equipment excluding computer and office equipment 12.2 133.0 131.6 130.8 131.3 132.6 135.5 132.3 134.8 133.5 134.9 135.2 134.9 135.0 134.3 38 Materials excluding energy 29.7 134.9 136.2 136.6 136.4 136.6 137.8 136.6 138.6 140.0 141.2 141.4 142.5 142.3 141.3 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 SIC pro- 1995 Group code por- avg. Apr. May Julyr Aug.r Sept. Oct.p Index (1987 = 100) MAJOR INDUSTRIES 59 Total index 100.0 121.9 122.2 122.6 122.8 122.5 124.2 123.6 124.5 125.4 126.4 126.3 126.8 127.2 126.6 60 Manufacturing 85.4 123.9 124.4 124.5 124.8 124.5 126.2 125.2 126.5 127.4 128.5 129.0 129.1 129.5 128.9 61 Primary processing 26.6 117.6 117.0 117.1 117.3 116.7 116.3 117.1 117.5 118.5 119.7 119.8 120.0 120.2 119.6 62 Advanced processing 58.9 126.8 127.9 128.0 128.4 128.2 131.0 129.0 130.8 131.5 132.7 133.3 133.4 133.9 133.2 63 Durable goods 45.0 132.5 133.5 134.3 134.8 134.9 137.5 135.6 138.3 139.1 141.1 141.5 142.2 142.6 141.6 64 Lumber and products "'24 2.0 104.5 105.7 104.8 106.9 103.1 103.3 107.5 108.4 107.7 110.6 107.4 109.0 109.3 108.7 65 Furniture and fixtures 25 1.4 111.6 110.9 109.8 109.3 109.3 110.5 107.7 108.9 112.1 111.9 109.8 110.7 111.2 111.4 66 Stone, clay, and glass products 32 2.1 104.1 104.5 104.9 104.3 105.5 104.1 102.9 103.6 105.0 105.8 108.8 106.4 106.0 106.3 67 Primary metals 33 3.1 119.2 115.7 120.8 120.0 121.5 117.1 118.0 119.2 118.6 121.0 118.6 120.6 121.2 120.0 68 Iron and steel 331,2 1.7 122.4 115.1 126.1 122.7 128.1 119.5 120.2 122.9 121.0 124.2 122.8 124.2 124.3 122.5 69 Raw steel 331PT .1 114.7 111.3 116.4 118.0 113.9 112.5 114.9 112.9 113.2 115.7 112.9 114.5 114.3 112.4 70 Nonferrous 333-6,9 1.4 114.8 115.8 113.8 116.2 113.0 113.6 114.8 114.2 115.1 116.6 113.0 115.7 117.0 116.4 71 Fabricated metal products. .. 34 5.0 113.9 114.0 114.5 115.0 115.6 117.0 116.1 115.5 116.7 117.3 117.2 118.1 118.6 117.3 72 Industrial machinery and equipment 35 8.0 177.8 183.8 186.5 190.1 191.9 196.1 197.8 199.0 201.2 205.2 205.8 210.0 212.0 214.5 73 Computer and office equipment 357 1.8 373.5 402.9 417.8 431.7 442.9 463.3 476.0 491.1 505.0 522.0 540.0 553.4 570.0 582.0 74 Electrical machinery 36 7.2 174.9 182.4 183.6 182.8 182.4 188.7 187.9 187.3 188.8 191.0 190.1 190.0 190.9 189.6 75 Transportation equipment. .. 37 9.5 113.3 109.3 108.6 109.7 108.3 112.1 103.1 114.6 114.6 116.6 120.3 119.1 118.2 113.7 76 Motor vehicles and parts . 371 4.8 141.9 139.7 140.7 141.2 135.5 141.1 121.3 144.3 144.7 148.7 154.5 151.3 148.0 138.6 77 Autos and light trucks . 371PT 2.5 131.3 128.4 129.6 131.5 123.5 132.8 109.9 135.5 135.3 138.9 149.4 141.3 136.5 125.4 78 Aerospace and miscellaneous transportation equipment 372-6.9 4.7 85.8 80.0 77.7 79.4 82.2 84.2 85.7 86.0 85.7 85.8 87.3 88.2 89.6 89.8 79 Instruments 38 5.4 110.7 111.4 111.5 109.7 111.0 113.4 112.9 112.8 112.4 113.7 112.3 113.5 113.4 114.1 80 Miscellaneous 39 1.3 122.7 122.2 123.3 123.5 122.1 124.0 124.0 122.6 123.0 124.4 124.1 124.1 124.1 122.3 81 Nondurable goods 40.5 114.3 114.3 113.7 113.8 113.1 113.8 113.6 113.5 114.4 114.6 115.2 114.7 115.1 114.9 82 Foods 20 9.4 115.3 115.4 114.8 114.8 114.8 116.0 115.6 115.4 115.6 115.1 115.8 114.4 115.1 115.5 83 Tobacco products 21 1.6 90.2 88.2 88.9 88.4 87.1 90.9 92.6 94.6 91.9 93.0 90.8 92.1 93.2 91.4 84 Textile mill products 22 1.8 112.6 111.1 108.9 108.3 104.1 106.2 109.0 108.2 108.8 111.1 112.4 110.1 109.0 109.8 85 Apparel products 23 2.2 95.7 93.3 92.4 91.5 89.2 90.9 89.7 90.4 90.8 90.9 90.1 90.8 90.4 89.1 86 Paper and products 26 3.6 119.8 119.7 116.2 118.2 114.9 113.5 115.5 118.9 119.5 119.4 121.5 118.9 119.1 119.7 87 Printing and publishing 27 6.8 99.4 98.9 99.3 98.8 97.9 98.7 96.7 96.3 97.7 97.2 97.2 97.3 98.0 98.1 88 Chemicals and products .... 28 9.9 125.0 126.7 126.0 126.5 127.1 127.1 126.5 126.0 127.7 128.1 129.7 128.8 129.2 128.8 89 Petroleum products 29 1.4 108.3 106.9 107.4 108.9 108.9 110.2 109.9 109.7 109.8 110.3 109.5 111.1 111.9 112.9 90 Rubber and plastic products . 30 3.5 139.4 139.7 140.3 139.3 139.0 139.7 140.5 137.6 140.7 142.4 142.3 144.3 144.5 142.1 91 Leather and products 31 .3 81.3 79.7 78.2 76.8 75.6 77.1 76.7 76.2 75.6 76.3 75.4 74.8 74.2 75.2 92 Mining 6.9 99.9 98.2 98.3 98.1 97.1 98.0 101.1 100.4 100.5 102.8 100.9 103.5 103.4 102.4 93 Metal 10 .5 169.3 178.3 175.9 172.8 159.5 157.1 166.1 158.3 161.6 161.3 168.2 168.4 169.8 165.5 94 Coal 12 1.0 112.9 112.3 109.5 108.5 103.3 108.0 114.8 109.5 111.9 113.2 107.1 120.8 120.5 118.9 95 Oil and gas extraction 13 4.8 91.9 89.2 90.1 90.1 90.8 90.2 92.6 93.3 93.2 95.5 94.1 94.8 94.6 93.7 96 Stone and earth minerals 14 .6 112.3 112.4 110.9 112.4 108.9 117.2 117.4 115.6 112.7 118.0 114.6 116.2 116.8 117.9 97 Utilities 7.7 122.0 121.6 125.4 125.1 125.6 126.6 128.0 126.4 128.4 126.6 122.6 124.9 125.3 125.3 98 Electric 491,493PT 6.1 122.1 123.7 123.6 123.9 125.5 126.6 127.1 125.7 128.7 126.7 122.7 125.7 126.2 126.3 99 Gas 492.493PT 1.6 121.7 113.6 132.5 129.9 125.6 126.3 131.5 128.9 127.5 125.8 122.1 121.5 121.5 121.7 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.6 122.8 123.4 123.6 123.9 123.9 125.4 125.4 125.5 126.3 127.3 127.4 127.8 128.4 128.3 101 Manufacturing excluding office and computing machines . . . 83.7 119.5 119.6 119.6 119.7 119.3 120.7 119.5 120.7 121.3 122.3 122.5 122.4 122.6 121.8 Gross value (billions of 1992 dollars, annual rates) MAJOR MARKETS 102 Products, total 2,002.9 2,245.6 2,240.3 2,255.8 2,265.7 2,248.9 2,293.1 2,269.5 2,300.3 2,307.8 2,327.6 2,334.3 2,328.4 2,334.3 2,324.4 103 Final 1,552.2 1,748.7 1,741.9 1,756.8 1,761.9 1,753.0 1,794.2 1,766.8 1,801.5 1,804.4 1,817.1 1,831.0 1,821.8 1,822.4 1,812.9 104 Consumer goods 1,033.4 1,130.5 1,125.1 1,139.3 1,139.0 1,124.7 1,148.4 1,129.5 1,144.9 1,147.2 1,151.5 1,156.4 1,145.6 1,143.0 1,135.2 105 Equipment 518.8 618.3 616.7 617.5 622.9 628.4 645.8 637.3 656.6 657.1 665.6 674.7 676.2 679.4 677.7 106 Intermediate 450.7 496.9 498.4 499.0 503.8 495.9 498.8 502.7 498.8 503.4 510.5 503.3 506.6 511.8 511.5 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 • January 1997 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1995 1996 Item i jy.i '995 Dec. Jan. Feb. Mar. Apr. May June July1" Aug/ Sept. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,199 1,372 1,332 1,487 1.378 1,417 1,423 1,459 1,452 1,415 1,457 1,423 1,399 2 One-family 987 1,068 997 1,123 1,056 1,087 1,097 1,115 1,098 1,085 1,073 1,078 1,040 3 Two-family or more 213 303 335 364 322 330 326 344 354 330 384 345 359 4 Started 1,288 1,457 1.354 1,425 1,453 1,514 1,439 1,511 1,478 1,490 1,470 1,533 1,440 5 One-family 1,126 1.198 1,076 1,150 1.146 1,183 1,163 1,209 1,144 1,209 1,150 1,239 1,120 6 Two-family or more 162 259 278 275 307 331 276 302 334 281 320 294 320 7 Under construction at end of period1 680 762 776 800 803 800 816 826 826 829 823 824 836 8 One-family 543 558 547 569 569 565 581 591 590 596 592 596 599 9 Two-family or more 137 204 229 231 234 235 235 235 236 233 231 228 237 10 Completed 1.193 1,347 1,313 1,225 1,403 1.328 1,391 1,350 1.408 1.418 1,447 1,442 1,358 1 1 One-family 1,040 1,160 1,066 1,003 1,113 1,052 1.112 1.073 1,120 1,128 1,145 1,153 1,105 12 Two-family or more 153 187 247 222 290 276 279 277 288 290 302 289 253 13 Mobile homes shipped 254 304 340 352 352 341 364 378 369 372 372 369 352 Merchant builder activity in one-family units 14 Number sold 666 670 665 683 743 784 713 740 734 733 785 820 816 15 Number for sale at end of period1 293 337 372 372 370 355 368 369 362 356 356 349 336 Price of units sold (thousands of dollars)2 16 Median 126.1 130.4 133.4 138.6 131.9 139.4 137.0 140.0 136.4 140.0 143.5 136.5 137.5 17 Average 147.6 153.7 157.6 165.6 155.3 163.7 162.1 170.0 163.3 166.5 167.0 158.4 171.6 EXISTING UNITS (one-family) 18 Number sold 3,800 3,946 3,801 3,870 3,720 3,940 4,200 4,200 4,280 4.160 4,150 4,140 4,030 Price of units sold (thousands of dollars 19 Median 106.5 109.6 112.2 113.9 114.8 114.0 115.7 116.5 117.6 122.9 121.5 122.3 117.8 20 Average 133.1 136.4 138.4 138.7 141.2 138.7 140.1 141.9 144.4 150.2 149.6 149.9 144.7 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 482,737 527,063 547,079 555,701 558,952 544,577 556,983 564,623 558,481 563,122 558,613 562,669 573,429 22 Private 362,587 400,007 410.197 417,191 418,896 411,248 419,726 424,233 418,120 423,106 418,578 424,615 426,434 23 Residential 210,455 238,873 236,598 243,104 242,474 238,558 245,881 248,013 247,486 246,909 244,618 244,325 244,072 24 Nonresidential 152,132 161,134 173,599 174,087 176,422 172,690 173,845 176,220 170,634 176,197 173,960 180,290 182,362 25 Industrial buildings 26,482 28,947 32,301 31,996 32,495 30,792 30,593 30,285 27,310 28,755 28,599 27,055 29,111 26 Commercial buildings 53,375 59,728 67,528 66,447 66,475 66,461 65,503 67,565 65,834 69,280 68,005 71,822 71,024 2/ Other buildings 26,219 26,961 26,923 28,197 28,103 27,470 27,884 27,457 27,723 28,533 28,443 29,661 29,983 28 Public utilities and other 46,056 45,498 46,847 47,447 49,349 47,967 49,865 50,913 49,767 49,629 48,913 51,752 52,244 29 Public 120,151 127,056 136.884 138.510 140,056 133,329 137.257 140,390 140,361 140,016 140,035 138,053 146,995 30 Military 2,454 2,319 3,005 3,211 3,554 3,982 3,126 3,168 3,020 3,140 3,041 2,912 2,730 31 Highway 34,342 37,673 38,161 40.402 39,444 40.956 39,527 39,454 37,715 38,308 39,310 36,507 41,144 32 Conservation and development 5,908 6,370 6,389 6,014 5,352 5,455 5,811 5,956 5.756 6,004 5,498 5,351 5,348 33 Other 77,447 80,694 89,329 88,883 91,706 82,936 88,793 91.812 93,870 92,564 92,186 93,283 97,773 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) Index level, Item 1995 1996r 1996 Oct. 1995 1996 1996 1 Oct. Oct. Dec. Mar. June Sept. June July Aug. Sept. Oct. CONSUMER PRICES2 (1982-84= 100) 1 2.8 3.0 2.4 4.0 3.1 2.6 .1 .3 .1 .3 .3 158.3 ? 3.0 4.0 1.9 3.2 4.6 5.3 .7 .5 .4 .5 .6 155.4 - 1.2 5.7 1.9 15.8 8.4 -3.9 -2.2 -.4 -.6 .0 .7 110.5 4 3.0 22..66 2.2 3.5 2.2 2.7 .2 .3 .1 .3 .2 167.0 5 1.6 11..11 1.7 2.6 -.3 .9 .0 .0 -.1 .4 .1 142.0 6 33..77 33..22 22..55 33..44 3.9 3.2 .3 .3 .2 .2 .3 181.2 PRODUCER PRICES (1982=100) 7 2.3 3.0 4.4 2.5 2.2 1.8 ,2r -.R .3 .2 .4 132.5 8 33..00 5.0 4.4 .6 5.9 5.2 1.8r ,0r 1.0 .2 .8 136.4 9 ..11 9.5 10.8 17.8 -.5 1.0 -2.4r — ,7r .7 .2 1.9 84.5 10 2.7 1.0 3.4 -.3 2.2 .8 .R ,0r .0 .2 -.1 144.9 1111 22..44 .4 22..99 ..00 .6 1.2 ,IR .R -.1 .3 -.4 138.6 Intermediate materials P 4.5 .0 -.6 -1.0 .0 .3 -.6 — .4 .2 .2 .1 125.8 1133 55..11 --11..66 --22..99 --33..55 .0 -.3 ..00 --..33 .1 .1 -.1 133.6 Crude materials 14 10.8 8.9 20.8 -4.1 60.1 -7.3 1.4r 2.3r -.3 -3.8 -2.7 119.4 15 -4.7 23.6 33.9 52.8 -14.1 21.7 -6.8r 3.6r .7 .6 1.5 82.7 1166 Other 33..99 --77..88 -18.4 -10.6 -8.8 -2.6 - 1.7r — 1.4r .1 .6 .3 152.6 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • January 1997 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 Q3 Q4 Ql Q2 Q3 GROSS DOMESTIC PRODUCT 1 Total 6,553.0 6,935.7 7,253.8 7,309.8 7,350.6 7,426.8 7,545.1 7,616.0 By source 2 Personal consumption expenditures 4,454.1 4,700.9 4,924.9 4,957.9 4,990.5 5,060.5 5,139.4 5,164.1 3 Durable goods 530.7 580.9 606.4 615.8 612.8 625.2 637.6 633.9 4 Nondurable goods 1,368.9 1,429.7 1,485.9 1,491.2 1,494.2 1,522.1 1,544.7 1,543.8 5 Services 2,554.6 2,690.3 2,832.6 2,850.9 2,883.5 2,913.2 2,957.1 2,986.4 6 Gross private domestic investment 871.1 1,014.4 1,065.3 1,074.8 1,064.0 1,068.9 1,096.0 1,155.7 / Fixed investment 850.5 954.9 1,028.2 1,036.6 1,046.2 1,070.7 1,088.0 1,113.3 8 Nonresidential 598.8 667.2 738.5 746.3 749.7 769.0 773.8 801.6 9 Structures 171.8 180.2 199.7 202.5 204.0 208.4 207.4 210.7 10 Producers' durable equipment 427.0 487.0 538.8 543.8 545.7 560.6 566.3 590.9 11 Residential structures 251.7 287.7 289.8 290.3 296.5 301.7 314.2 311.7 12 Change in business inventories 20.6 59.5 37.0 38.2 17.8 -1.7 8.0 42.4 13 Nonfarm 26.8 48.0 39.6 41.5 19.9 2.7 11.3 42.9 14 Net exports of goods and services -62.7 -94.4 -94.7 -87.6 -67.2 -86.3 -99.2 -115.7 15 Exports 657.8 719.1 807.4 819.0 837.0 839.5 850.0 846.3 16 Imports 720.5 813.5 902.0 906.6 904.2 925.8 949.2 962.0 17 Government consumption expenditures and gross investment 1,290.4 1,314.7 1,358.3 1,364.6 1,363.4 1,383.7 1,408.8 1,412.0 18 Federal 522.6 516.4 516.6 516.8 507.7 518.6 529.6 524.5 19 State and local 767.8 798.4 841.7 847.7 855.7 865.1 879.2 887.6 Bv major type of product 20 Final sales, total 6,532.4 6,876.2 7,216.7 7,271.5 7,332.8 7,428.6 7,537.1 7,573.7 21 Goods 2,401.4 2,534.4 2,662.2 2,688.8 2,698.0 2,749.3 2,782.0 2,787.1 22 Durable 1,014.3 1,086.2 1,147.3 1,167.2 1,166.4 1,192.1 1,219.1 1,226.8 23 Nondurable 1,387.2 1,448.3 1,515.0 1,521.6 1,531.7 1,557.1 1,562.9 1,560.3 24 Services 3,584.0 3,746.5 3,926.9 3,950.2 3,992.4 4,027.9 4,087.0 4,120.4 25 Structures 547.0 595.3 627.6 632.6 642.3 651.4 668.0 666.1 26 Change in business inventories 20.6 59.5 37.0 38.2 17.8 -1.7 8.0 42.4 27 Durable goods 15.7 31.9 34.9 29.2 27.3 12.3 9.9 25.4 28 Nondurable goods 4.9 27.7 2.2 9.1 —9.4 -14.0 -1.9 17.0 MEMO 29 Total GDP in chained 1992 dollars 6,386.4 6,608.7 6,742.9 6,776.4 6,780.7 6,814.3 6,892.6 6,929.7 NATIONAL INCOME 30 Total 5,195.3 5,501.6 5,813.5 5,861.4 5,927.4 6,015.3 6,118.7 n.a. 31 Compensation of employees 3,809.5 4,009.8 4,222.7 4,247.7 4,301.1 4,344.3 4,420.9 4,489.6 32 Wages and salaries 3,095.3 3,257.3 3,433.2 3,454.0 3,501.1 3,540.2 3,606.5 3,665.8 33 Government and government enterprises 584.2 602.5 621.7 624.1 626.9 634.0 638.9 645.0 34 Other 2,511.1 2,654.8 2.811.5 2,829.9 2,874.2 2,906.1 2,967.5 3,020.8 35 Supplement to wages and salaries 714.2 752.4 789.5 793.7 800.1 804.1 814.4 823.8 36 Employer contributions for social insurance 333.3 350.2 365.5 367.8 369.8 375.0 380.4 385.1 3/ Other labor income 380.9 402.2 424.0 425.9 430.2 429.1 434.0 438.6 38 Proprietors' income1 420.0 450.9 478.3 479.6 486.7 499.5 515.2 521.9 39 Business and professional1 388.1 415.9 449.3 451.5 454.9 461.1 469.4 473.5 40 Farm1 32.0 35.0 29.0 28.1 31.8 38.4 45.8 48.3 41 Rental income of persons" 102.5 116.6 122.2 120.9 125.8 126.9 124.5 127.0 42 Corporate profits1 464.4 529.5 586.6 612.5 611.8 645.1 655.8 n.a. 43 Profits before tax3 464.3 531.2 598.9 607.2 604.2 642.2 644.6 44 Inventory valuation adjustment -6.6 -13.3 -28.1 -9.3 -8.8 -17.4 -11.0 2.2 45 Capital consumption adjustment 6.7 11.6 15.9 14.6 16.5 20.4 22.3 23.8 46 Net interest 398.9 394.9 403.6 400.7 401.9 399.5 402.3 n.a. 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Q3 Q4 Ql Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 5,480.1 5,753.1 6,115.1 6,146.9 6,234.5 6,308.5 6,412.4 6,502.9 2 Wage and salary disbursements 3,090.7 3,241.8 3,430.6 3,451.2 3,500.2 3,538.2 3,606.5 3,665.8 3 Commodity-producing industries 781.3 824.9 863.5 866.7 873.9 878.7 900.3 911.4 4 Manufacturing 593.1 621.1 648.4 650.1 654.7 654.8 671.8 678.6 Distributive industries 698.4 739.2 783.7 789.3 800.7 810.5 822.3 835.9 6 Service industries 1,026.7 1,075.2 1,161.6 1,171.1 1,198.6 1,215.1 1,244.9 1,273.5 7 Government and government enterprises 584.2 602.5 621.7 624.1 626.9 634.0 638.9 645.0 8 Other labor income 380.9 402.2 424.0 425.9 430.2 429.1 434.0 438.6 9 Proprietors' income1 420.0 450.9 478.3 479.6 486.7 499.5 515.2 521.9 10 Business and professional1 388.1 415.9 449.3 451.5 454.9 461.1 469.4 473.5 11 Farm1 32.0 35.0 29.0 28.1 31.8 38.4 45.8 48.3 12 Rental income of persons2 102.5 116.6 122.2 120.9 125.8 126.9 124.5 127.0 13 Dividends 186.8 199.6 214.8 215.8 221.7 226.6 229.3 231.5 14 Personal interest income 648.1 663.7 717.1 719.9 727.2 726.1 733.1 742.4 15 Transfer payments 910.7 956.3 1,022.6 1,029.9 1,041.4 1,063.0 1,075.6 1,085.9 16 Old age survivors, disability, and health insurance benefits 444.4 472.9 507.4 510.7 516.1 529.9 536.3 542.3 17 LESS: Personal contributions for social insurance 259.6 278.1 294.5 296.2 298.8 301.0 305.8 310.2 18 EQUALS: Personal income 5,480.1 5,753.1 6,115.1 6,146.9 6,234.5 6,308.5 6,412.4 6,502.9 19 LESS: Personal tax and nontax payments 689.9 731.4 794.3 798.4 807.2 824.9 870.6 873.3 20 EQUALS: Disposable personal income 4,790.2 5,021.7 5,320.8 5,348.5 5,427.3 5,483.5 5,541.8 5,629.6 21 LESS: Personal outlays 4,575.8 4,832.3 5,071.5 5,106.6 5,144.7 5,218.1 5,300.7 5,327.6 22 EQUALS: Personal saving 214.4 189.4 249.3 241.9 282.6 265.4 241.1 302.0 MEMO Per capita (chained 1992 dollars) 23 Gross domestic product 24,734.3 25,349.8 25,628.8 25,726.7 25,684.5 25,753.3 25,990.0 2266,,007711..11 24 Personal consumption expenditures 16,806.7 17,158.2 17,399.6 17,453.7' 17,459.8' 17,570.2 17,675.7 17,655.4 25 Disposable personal income 18,078.0 18,330.0 18,799.0 18,829.0 18,986.0 19,041.0 19,063.0 19,246.0 26 Saving rate (percent) 4.5 3.8 4.7 4.5 5.2 4.8 4.3 5.4 GROSS SAVING 27 Gross saving 935.5 1,056.3 1,151.8 1,168.6 1,220.6 1,217.9 1,244.5 n.a. 28 Gross private saving 962.4 1,006.7 1,071.8 1,085.9 1,138.9 1,133.8 1,121.6 n.a. 29 Personal saving 214.4 189.4 249.3 241.9 282.6 265.4 241.1 302.0 30 Undistributed corporate profits 103.3 123.2 140.6 159.6 158.4 171.8 176.3 n.a. 31 Corporate inventory valuation adjustment -6.6 -13.3 -28.1 -9.3 -8.8 -17.4 -11.0 2.2 Capital consumption allowances 32 Corporate 417.0 441.0 454.0 456.9 463.6 465.6 471.0 477.0 33 Noncorporate 223.1 237.7 225.2 224.7 233.4 229.1 233.2 237.1 34 Gross government saving -26.9 49.6 80.0 82.7 81.7 84.1 122.9 n.a. 35 Federal -187.4 -119.6 — 87.9 -84.6 -80.7 -82.0 -54.1 n.a. 36 Consumption of fixed capital 68.2 70.6 73.8 73.8 73.8 73.2 72.6 72.3 37 Current surplus or deficit (-), national accounts -255.6 -190.2 -161.7 -158.5 -154.5 -155.2 -126.7 n.a. 38 State and local 160.5 169.2 167.9 167.3 162.4 166.1 177.0 n.a. 39 Consumption of fixed capital 65.6 69.4 72.9 73.4 74.3 75.1 76.0 77.1 40 Current surplus or deficit (-), national accounts 94.9 99.7 95.0 93.9 88.1 91.0 101.0 n.a. 41 Gross investment 993.5 1,090.4 1,150.9 1,161.5 1,173.9 1,167.9 1,187.0 n.a. 42 Gross private domestic investment 871.1 1,014.4 1,065.3 1,074.8 1,064.0 1,068.9 1,096.0 1,155.7 43 Gross government investment 210.6 212.3 221.9 224.7 220.1 228.8 235.1 231.9 44 Net foreign investment -88.2 -136.4 -136.3 -138.1 -110.2 -129.9 -144.2 n.a. 45 Statistical discrepancy 58.0 34.1 -.9 -7.1 -46.7 -50.0 -57.5 n.a. 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • January 1997 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1995 1996 IItteemm ccrreeddiittss oorr ddeebbiittss 11999933 11999944 11999955 Q2 Q3 Q4 Q1 Q2P 1 Balance on current account -99.937 -148,405 -148.156 -40,976 -37,688 -30,435 -34,869 -38,779 2 Merchandise trade balance" -132.609 -166,121 -173.424 -47,927 -42,548 -38,026 -42,730 -46,830 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 .1 Military transactions, net 881 1,963 3,585 859 1,120 978 489 835 b Otner service transactions, net 59.690 59,779 64,775 15,244 17,093 17,657 18,014 18,120 / Investment income, net 9.742 -4,160 -8.017 -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 10 Private remittances and other transfers -16.736 -19,506 -20,696 -4,942 -5,095 -5,624 -5,685 -6,001 1 1 Change in U.S. government assets other than official reserve assets, net (increase, —) -342 -341 -280 -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 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -537 -441 -808 -156 362 -147 -199 -133 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 17 Change in U.S. private assets abroad (increase. —) -192.890 -155,701 -297,834 -105,398 -37,954 -98,206 -68,615 -48,213 18 Bank-reported claims 29.947 -8,161 -69,146 -41,236 8,476 -7,272 1,714 --55,,114499 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 -78,165 -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 assets1 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 liabilities1 20,859 111,842 25,283 10,200 -21,542 32,765 -35,571 --33,,886622 30 U.S. nonbank-reported liabilities 10,489 — 1.110 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 35 Discrepancy 43.550 13.724 31,548 33,854 -41,533 29,420 4,148 7,629 36 Due to seasonal adjustment -266 -7,407 1,153 6,279 -743 3/ 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 --22,,772222 --11,,889933 191 17 --552233 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 3,959 -341 6,147 -1,435 -992 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 dilfer 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 Mar. Apr. May June July Aug. Sept.p 1 Goods and services, balance -72.037 -104,381 -105.064 -7,873 -9,396 -10,455 -8,190 -11,597 -10,302 -11,341 2 Merchandise -132,607 -166,123 -173,424 -14,448 -15,584 -16.791 -14,620 -17,492 -16.423 -17.677 3 Services 60,570 61,742 68,360 6,575 6,188 6,336 6.430 5,895 6.121 6,336 4 Goods and services, exports 642,953 698,301 786,529 69,332 69,200 70,170 69,730 67,306 69,783 68,785 5 Merchandise 456,834 502,462 575,939 50,492 50,741 51,384 50.972 48,779 51,095 50.064 6 Services 186,119 195,839 210,590 18,840 18,459 18,786 18,758 18,527 18.688 18.721 7 Goods and services, imports -714,990 -802,682 -891,593 -77,205 -78,596 -80,625 -77,920 -78,903 -80.085 -80.126 8 Merchandise -589.441 -668,585 -749,363 -64.940 -66,325 -68,175 -65,592 -66,271 -67,518 -67,741 9 Services -125,549 -134,097 -142,230 -12,265 -12,271 -12,450 -12,328 -12,632 -12,567 -12.385 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 Mar. Apr. May June July Aug. Sept. Oct.p 1 Total 73,442 74,335 85,832 84,212 83,710 83,468 83,455 85,099 76,781 75,509 75,558 2 Gold stock, including Exchange Stabilization Fund' 11,053 11.051 11,050 11,053 11.052 11,051 11.050 11,050 11.050 11,050 11,050 3 Special drawing rights"-3 9,039 10,039 11,037 11,049 10,963 11,037 11.046 11,216 10,307 10.177 10,226 4 Reserve position in International Monetary Fund" 11,818 12,030 14,649 15,249 15.117 15,227 15,282 15,665 15,597 15,421 15,517 5 Foreign currencies4 41,532 41,215 49,096 46,861 46.578 46,153 46,077 47,168 39,827 38,861 38.765 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 Slates; 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 Mar. Apr. May June July Aug. Sept. Oct." 1 Deposits 386 250 386 191 166 160 182 166 171 265 176 Held in custody 2 U.S. Treasury securities" 379,394 441,866 522.170 573,435 573.924 578,608 572,839 580,277 590,367 609.801 619.987 3 Earmarked gold3 12,327 12,033 11.702 11.590 11,445 11,339 11,296 11,273 11.217 11,210 11,204 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 trov 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 • January 1997 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1996 IItteemm 11999944 11999955 Mar. Apr. May June July Aug. Sept.p 1 Total1 520,934 630,867 683,025 687,239 689,733 696,373 699,496 703,876r 719,396 By type 2 Liabilities reported by banks in the United States 73,386 107,343 104,060 111,032 104,941 118,247 113,416 11 l,035r 116,167 3 U.S. Treasury bills and certificates3 139,571 168,534 198,382 186,638 188,321 187,171 186,061 189,726 182,122 U.S. Treasury bonds and notes 4 Marketable 254.059 293,691 319,735 327,988 334,470 327,822 337,451 341,038 358,226 5 Nonmarketable4 6.109 6,491 6,199 6,238 5,903 5,941 5,980 6,018 6,057 6 U.S. securities other than U.S. Treasury securities5 47,809 54,808 54,649 55,343 56,098 57,192 56,588 56,059 56,824 By area 7 Europe1 215,374 222,406 242,517 241,089 244,222 245,368 245,406 246,761 246,243 8 Canada 17,235 19,473 20,846 20,878 21,670 21,250 20,153 21,662r 21,351 9 Latin America and Caribbean 41,492 66,720 73,184 71,381 68,043 70,142 67,990 69,076r 69,273 10 Asia 236,824 310,966 335,006 341,148 343,206 346,103 350,747 354,266 369,474 11 Africa 4,180 6,296 6,584 7,388 7,173 6,997 6,910 6,722 6,944 12 Other countries 5,827 5,004 4,886 5,353 5,417 6,511 8,288 5,387 6,109 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 States' 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 89,308 102,220 109,647 107,514 111,651 2 Banks' claims 62,799 62,017 60,711 69,558 74,015 69,159 65,864 3 Deposits 24,240 20,993 19,661 25,768 22,696 22,208 20,876 4 Other claims 38,559 41,024 41,050 43,790 51,319 46,951 44,988 5 Claims of banks' domestic customers2 4,432 12,854 10,878 6,624 6,145 6,353 7,464r 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

Nonbank-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 Mar. Apr. May June July Aug. Sept.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 926,672 1,015,076 1,099,790 1,101,069 1,100,589 1,096,031 l,097,866r l,088,880r 1,074,518 1,090,460 2 Banks' own liabilities 626,919 718,671 753,652 730,448 735,749 723,534 731,335R 720,280' 703,738 723,637 3 Demand deposits 21,569 23,386 24,448 23,359 23,962 23,325 27,364R 24,989' 23,136 25,510 4 Time deposits^ 175,106 186,512 192,702 193,623 191,999 181,016 189,699R 193,413' 196,079 191,923 5 Other3 111,971 113,215 139,965 138,321 146,589 144,051 149,070 144,504 129,629 148,490 6 Own foreign offices4 318,273 395,558 396,537 375,145 373,199 375,142 365,202R 357,374' 354,894 357,714 7 Banks' custodial liabilities5 299,753 296,405 346,138 370,621 364,840 372,497 366,531 368,600' 370,780 366,823 8 U.S. Treasury bills and certificates6 117766,,773399 116622,,993388 119977,,335555 222288,,770055 221177,,110066 222200,,882233 221188,,660088 221177,,554488 221199,,994499 221122,,447788 9 Other negotiable and readily transferable instruments7 36,289 42,539 52,250 40,483 44,823 49,655 51,463 56,345 55,552 57,702 10 Other 86,725 90,928 96,533 101,433 102,911 102,019 96,460 94,707' 95,279 96,643 11 Nonmonetary international and regional organizations8. .. 10,936 8,606 11,039 9,512 11,311 11,994 12,158 11,742 12,675 14,272 12 Banks' own liabilities 5,639 8,176 10,347 8,594 10,485 11,207 10,914 10,545 12,084 13,672 13 Demand deposits 15 29 21 16 28 34 123 22 49 26 14 Time deposits2 2,780 3,298 4,656 3,563 4,024 3,442 4,052 3,747 4,738 5,461 15 Other3 2,844 4,849 5,670 5,015 6,433 7,731 6,739 6,776 7,297 8,185 16 Banks' custodial liabilities5 5,297 430 692 918 826 787 1,244 1,197 591 600 17 U.S. Treasury bills and certificates6 4,275 281 350 564 426 376 874 865 345 399 18 Other negotiable and readily transferable instruments7 1,022 149 341 298 400 390 370 330 246 201 19 Other 0 0 1 56 0 21 0 2 0 0 20 Official institutions9 220,821 212,957 275,877 302,442 297,670 293,262 305,418 299,477 300,761 298,289 21 Banks' own liabilities 64,144 59,935 83,396 88,603 91,617 81,909 91,914 83,783 81,463 85,808 22 Demand deposits 1,600 1,564 2,098 1,423 1,679 1,504 2,211 2,211 1,459 2,060 23 Time deposits" 21,653 23,511 30,716 32,470 36,652 32,671 38,929 36,841 37,097 34,255 24 Other3 40,891 34,860 50,582 54,710 53,286 47,734 50,774 44,731 42,907 49,493 25 Banks' custodial liabilities5 156,677 153,022 192,481 213,839 206,053 211,353 213,504 215,694 219,298 212,481 26 U.S. Treasury bills and certificates6 151,100 139,571 168,534 119988,,338822 118866,,663388 188,321 187,171 186,061 189,726 182,122 27 Other negotiable and readily transferable instruments7 5,482 13,245 23,603 14,970 19,065 22,661 25,835 29,262 29,281 30,051 28 Other 95 206 344 487 350 371 498 371 291 308 29 Banks10 592,171 678,612 691,661 667,354 665,516 662,376 654,325R 646,706' 635,245 650,339 30 Banks' own liabilities 478,755 563,697 568,083 540,272 537,453 533,059 530,625R 525,543' 512,062 525,817 31 Unaffiliated foreign banks 160,482 168,139 171,546 165,127 164,254 157,917 165,423 168,169 157,168 168,103 32 Demand deposits 9,718 10,633 11,758 10,971 11,468 10,663 12,380 11,809 11,107 12,759 33 Time deposits2 105,262 111,171 103,623 101,047 96,238 89,120 90,717 95,353 95,004 91,998 34 Other3 45,502 46,335 56,165 53,109 56,548 58,134 62,326 61,007 51,057 63,346 35 Own foreign offices4 318,273 395,558 396,537 375,145 373,199 375,142 365,202R 357,374' 354,894 357,714 36 Banks' custodial liabilities5 113,416 114,915 123,578 127,082 128,063 129,317 123,700 121,163' 123,183 124,522 37 U.S. Treasury bills and certificates6 10,712 11,264 15,872 15,967 16,801 17,584 18,241 18,091 18,670 18,556 38 Other negotiable and readily transferable instruments7 17,020 14,506 13,035 11,864 10,814 11,775 11,021 10,359 10,864 11,298 39 Other 85,684 89,145 94,671 99,251 100,448 99,958 94,438 92,713' 93,649 94,668 40 Other foreigners 102,744 114,901 121,213 121,761 126,092 128,399 125,965' 130,955' 125,837 127,560 41 Banks' own liabilities 78,381 86,863 91,826 92,979 96,194 97,359 97,882' 100,409' 98,129 98,340 42 Demand deposits 10,236 11,160 10,571 10,949 10,787 11,124 12,650' 10,947' 10,521 10,665 43 Time deposits2 45,411 48,532 53,707 56,543 55,085 55,783 56,001' 57,472' 59,240 60,209 44 Other3 22,734 27,171 27,548 25,487 30,322 30,452 29,231 31,990 28,368 27,466 45 Banks' custodial liabilities5 24,363 28,038 29,387 28,782 29,898 31,040 28,083 30,546 27,708 29,220 46 U.S. Treasury bills and certificates6 10,652 11,822 12,599 13,792 13,241 14,542 12,322 12,531 11,208 11,401 47 Other negotiable and readily transferable instruments7 12,765 14,639 15,271 13,351 14,544 14,829 14,237 16,394 15,161 16,152 48 Other 946 1,577 1,517 1,639 2,113 1,669 1,524 1,621 1,339 1,667 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 17,567 17,895 9,103 10,005 8,306 9,284 9,580 7,922' 8,276 10,466 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 • January 1997 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States'—Continued 1996 IItteemm 11999933 11999944 11999955 Mar. Apr. May June July Aug. Sept.p AREA 50 Total, all foreigners 926,672 1,015,076 1,099,790 1,101,069 1,100,589 1,096,031 l,097,866r l,088,880r 1,074,518 1,090,460 51 Foreign countries 915,736 1,006,470 1,088,751 1,091,557 1,089,278 1,084,037 l,085,708r l,077,138r 1,061,843 1,076,188 52 377,911 390,949 362,958 370,662 375,522 367,739 363,744 356,714R 356,225 350,790 53 Austria 1,917 3,588 3,537 2,848 3,477 3,624 3,209 3,002 4,683 6,017 54 Belgium and Luxembourg 28,670 21,877 24,842 25,584 27.572 25,955 20,856 22,093 25,155 22,285 55 Denmark 4,517 2,884 2,921 2,876 2,787 2,645 2,796 2,871 2,501 2,652 56 Finland 1,872 1,436 2,831 1,768 2,203 2.188 1,589 1,200 1,113 812 57 France 40,316 44,365 39,218 41,328 41,300 39,636 40,585 36,344 37,364 37,101 58 Germany 26,685 27,109 24,035 25,228 24,854 23,950 25.876 24,375R 23,128 23,599 59 Greece 1,519 1,400 2.014 1,965 1,714 1,665 1,690 1,811 1,722 1,852 60 Italy 11,759 10,885 10,868 11,469 10,172 11,039 12,103 12,785R 12,552 12,509 61 Netherlands 16,096 16,033 13,745 12,835 12,394 12,575 12,159 11,863 11,460 9,626 62 Norway 2,966 2.338 1,394 1,034 915 828 1,388 1,435 1.556 1,622 63 Portugal 3,366 2,846 2,761 2,843 2,529 1,858 1,401 L,784R 1,328 1,473 64 Russia 2,511 2,726 7.948 9,319 8.796 7,259 6,938 6.047 4.988 4,741 65 Spain 20,496 14,675 10,011 18,975 19,547 19,004 20,314 19,366 17,505 20.359 66 Sweden 2,738 3,094 3,246 2,256 3.943 2,410 2,693 2,738 1,592 1,815 67 Switzerland 41,560 40,724 43,625 39,081 36.803 37,097 39,006 39,626 39,073 42,225 68 Turkey 3,227 3,341 4,124 4,103 4,453 4.669 4,926 5.619 7,272 7,992 69 United Kingdom 133,993 163,813 139,272 144,136 146,627 146,335 143,780 138,486R 137,086 133.210 70 Yugoslavia" 372 245 177 143 145 146 217 208 207 214 /I Other Europe and other former U.S.S.R.1- 33,331 27,770 26,389 22,871 25,291 24,856 22,218 25,061 25,940 20,686 72 20,235 24,768 30,468 31,498 31,283 33,176 33,39 lr 28,81 R 30,722 33,199 73 Latin America and Caribbean 362,238 423,847 440,212 434,144 430,878 433,023 432,709R 437,682' 422,540 433,307 /4 Argentina 14.477 17,203 12,235 11,984 14,116 11,649 13,579 12,501 13,320 11,989 /5 Bahamas 73,820 104,014 94,991 88,162 85,749 86.278 85,227 93,324' 87,956 86,587 7 6 Bermuda 8,117 8,424 4,897 5.035 4,262 4,998 4.312 4,205 4,150 4,880 II Brazil 5,301 9,145 23,797 21,558 20,222 20,105 25,902 23,183 24,518 23.857 /8 British West Indies 193,699 229,599 239,083 240,950 239,169 243,260 234,391 233,128R 225.195 233,346 79 Chile 3,183 3,127 2.826 2,816 2,883 2,868 2,92 R 2,833R 2,462 3,205 80 Colombia 3,171 4,615 3,659 3,593 3,726 33,,339933 3,642 3,329 3,263 2,889 81 Cuba 33 13 8 7 13 88 10 10 14 33 82 Ecuador 880 875 1,314 1,273 1,264 1,283 1,301 1,405 1,433 1,449 83 Guatemala 1,207 1,121 1,275 1,060 1.085 1,073 1,07.3 1,092 1,176 1,181 84 Jamaica 410 529 481 494 516 550 534 562 625 623 85 Mexico 28,019 12,227 24,560 24,575 23,328 23,212 24,775 26,314 24,401 26,811 86 Netherlands Antilles 4,686 5,217 4,672 4,402 5,272 4,722 5,162 5,531 3,614 5,295 87 Panama 3,582 4,551 4,265 4,025 3,887 3,846 3,878 3,852 3,994 3,950 88 929 900 974 962 1,081 1.064 1,013 1,029 1,077 936 89 Uruguay 1,611 1,597 1,836 1,908 1,748 1,757 1,769 1,836 1,799 1,751 90 Venezuela 12,786 13,986 11,808 13,253 14,242 14,645 14,899 15,261 15,029 15,596 91 Other 6.327 6,704 7,531 8,087 8,315 8,312 8,321r 8,287 8,514 8,929 92 144,527 154,346 240,698 224411,,992222 223377,,770088 235,910 223399,,228899rr 223366,,778811'''' 238.542 224433,,667700 China 93 People's Republic of China 4,011 10,066 33,750 24,430 25,861 24,857 25,483 28.587 34,224 32,068 94 Republic of China (Taiwan) 10,627 9.844 11,714 15,513 14,953 14.598 16,621 16,100r 14,751 15,698 95 Hong Kong 17,132 17,104 20,303 20,187 18,378 18.606 18,227 17,775r 19,456 17,937 96 1,114 2,338 3,373 3,990 3,752 3,938 4.012 3,954 4,012 3,793 9/ Indonesia 1,986 1,587 2,708 2,169 2,627 2,374 2,316r 2.561 2,161 2,204 98 Israel 4,435 5,157 4,041 5,315 5,420 5,090 5,168 4,444 4,364 4,134 99 Japan 61.466 62,981 109,193 117,325 111,635 111,500 113,800 112,783r 109,304 112,572 100 Korea (South) 4.913 5,124 5,749 5,875 5,900 5,703 6,674 5,620r 5,404 5,906 101 Philippines 2,035 2,714 3,089 2,336 2,467 2,897 2,970 3,041 2,539 3,429 102 Thailand 6,137 6,466 12,279 12,158 12,905 13,387 12,253 11,713 10,691 11,759 103 Middle Eastern oil-exporting countries13 15,822 15,494 15,582 13,741 14,895 14,234 13.379 12,947r 13,891 14,715 104 Other 14,849 15,471 18,917 18,883 18,915 18,726 18,386r 17,256r 17,745 19,455 105 6,633 6,524 7,641 7,109 7.832 7,404 7,509 7,558 7,259 7,439 106 Egypt 2,208 1,879 2,136 2,057 2,002 1,873 1,831 2,114 1.920 1,894 10/ Morocco 99 97 104 65 114 113 115 133 121 78 108 South Africa 451 433 739 413 1.001 745 666 648 632 482 109 Zaire 12 9 10 9 8 16 6 13 6 6 no Oil-exporting countries'4 1,303 1.343 1,797 1,706 1,904 1,887 2,013 1,928 2,075 2,051 111 Other 2,560 2.763 2,855 2.859 2,803 2,770 2,878 2,722 2,505 2,928 112 Other 4,192 6,036 6,774 6,222 6,055 6,785 9.066 9,592 6.555 7,783 113 Australia 3,308 5.142 5,647 5,238 4,895 5,757 7,981 8,387 5,516 5,522 114 Other 884 894 1,127 984 1,160 1,028 1,085 1,205 1,039 2,261 115 Nonmonetary international and regional organizations.. . 10,936 8.606 11,039 9,512 11,311 11,994 12,158 11,742 12,675 14,272 116 International" 6,851 7,537 9,300 7,938 9,967 10,572 10,824 10,303 10,988 12,490 117 Latin American regional16 3,218 613 893 794 482 649 527 831 1,024 1,193 118 Other regional17 867 456 846 780 862 773 807 608 663 589 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

Nonbank-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 Mar. Apr. May June Juiyr Aug. Sept.p 1 Total, all foreigners 488,497 483,270 532,751 531,842 527,801 519,789 536,239r 545,132 546,785 544,837 2 Foreign countries 486,092 478,679 530,820 528,028 525,085 516,295 533,210r 543,018 544,753 543,131 3 Europe 123,741 123,408 132,150 138,802 135,493 134,459 146,180r 143,640 150,206 155,569 4 Austria 412 692 565 892 1,213 1,212 1,088 1,128 850 988 5 Belgium and Luxembourg 6,532 6,738 7,624 6,003 8,688 8,711 6,921 7,021 7,018 6,836 6 Denmark 382 1,129 403 698 543 482 432 319 230 408 7 Finland 594 512 1,055 1,782 1,305 1,282 1,013 1,629 1,296 1,375 8 France 11,822 12,146 15,033 13,740 11,604 11,954 11,768 10,571 11,568 12,266 9 Germany 7,724 7,608 9,263 9,260 8,647 8,099 11,831 9,497 7,559 8,660 10 Greece 691 604 469 507 622 554 563 527 433 397 11 Italy 8,834 6,043 5,370 5,871 5,702 6,172 5,721 6,023 6,542 5,869 12 Netherlands 3,063 2,959 5,346 5,585 6,346 5.618 6,546 6,360 6,565 6,956 13 Norway 396 504 665 1,016 793 933 1,243 1,397 1,342 1,199 14 Portugal 834 938 888 773 889 813 704 667 548 484 15 Russia 2,310 973 660 868 741 482 440 514 794 1,135 16 Spain 3,717 3.530 2,166 5,420 5,092 3,158 2,519 3,340 3,071 4,133 17 Sweden 4,254 4,098 2,080 2,206 3,534 2,526 2,799 2,802 2,725 2,976 18 Switzerland 6,605 5,746 7,474 4,841 6,370 8,713 12,145 9.520 9,262 10,930 19 Turkey 1,301 878 803 810 973 873 933 912 935 970 20 United Kingdom 62,013 66,874 67,784 73,717 68,999 69,557 75,813r 78,098 85,709 86,021 21 Yugoslavia2 473 265 147 120 208 204 164 159 87 87 22 Other Europe and other former U.S.S.R.3 1,784 1,171 4,355 4,693 3,224 3,116 3,537 3,156 3,672 3,879 23 Canada 18,617 18,490 2.0,874 18,040 22,061 20,885 22,246 23,985 25,136 25,335 24 Latin America and Caribbean 225,238 223,523 256,992 253,184 246,364 238,235 239,874r 253,372 249,523 239,882 25 Argentina 4,474 5,844 6,439 6,215 6,187 6,037 6,448r 6,598 7,062 6,881 26 Bahamas 63,353 66,410 58,818 66,156 55,497 56,383 60,608 59,627 62,295 61,824 27 Bermuda 8,901 8,481 5,741 4,829 5,031 2,993 3,620 3,590 3,052 3,640 28 Brazil 11,848 9,583 13,297 13,799 14,164 14,186 15,076r 15,197 15,155 15,340 29 British West Indies 99,319 95,741 123,924 113,249 118,609 110,780 102,669 100,886 99,187 101,778 30 Chile 3,643 3,820 5,024 4,540 4,587 4,350 4,388r 4,321 4,176 4,384 31 Colombia 3,181 4,004 4,550 4,542 4,512 4,511 4,538r 4.512 4,724 4,719 32 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 681 682 825 968 951 936 962r 897 932 965 34 Guatemala 288 366 457 465 473 461 452 463 476 507 35 Jamaica 195 258 323 332 335 345 359 346 335 339 36 Mexico 15,879 17,749 18,028 16,948 17,066 16,877 16,820 16,975 17,545 17,683 37 Netherlands Antilles 2,683 1,396 9,229 10,902 8,728 8,674 12,888 29,224 23,713 11,207 38 Panama 2,894 2,198 3,008 2,597 2,488 2,592 2,567 2,216 2,212 2,143 39 Peru 657 997 1,829 1,914 2,018 2,112 2,395r 2,568 2,463 2,540 40 Uruguay 969 503 466 623 578 602 623 589 563 530 41 Venezuela 2.910 1,831 1,661 1,559 1.377 1,279 1,390 1,402 1,728 1,513 42 Other 3,363 3,660 3,373 3,546 3,763 5,117 4,07 lr 3,961 3,905 3,889 43 111,775 107,079 115,569 111,429 115,037 116,490 118,374"" 115.425 113,951 114,117 China 44 People's Republic of China 2,271 836 1,023 2.439 3,405 2.857 2,141 1,344 2,033 1,700 45 Republic of China (Taiwan) 2,625 1,448 1,713 1,729 1,626 1,514 1,490 1,301 1,016 1,686 46 Hong Kong 10,828 9,161 12,915 15,555 15,339 14,745 15,997 13,822 12,468 13,883 47 India 589 994 1,846 1,869 1,787 1,786 1,794 1,785 2,118 1,975 48 Indonesia 1,527 1,470 1,696 1,619 1,539 1,563 1,562 1,744 1,582 1,653 49 Israel 826 688 739 665 642 615 620 658 667 576 50 Japan 60,032 59,151 61,461 52,776 54,627 54,613 54,005 53.454 54,580 52,308 51 Korea (South) 7,539 10,286 14,089 17,362 17,250 18,424 19,261 18,644 17,667 17,514 52 Philippines 1,410 662 1,350 1,202 779 838 1,298 1,274 1,213 1,267 53 Thailand 2,170 2,902 2,612 3,070 2,970 3,015 3,194 2,824 2,867 2,708 54 Middle Eastern oil-exporting countries4 15,115 13,748 9,639 7,145 7,252 8,976 8,348 9,480 9,489 10,316 55 Other 6,843 5,733 6,486 5,998 7,821 7,544 8,664r 9,095 8,251 8,531 56 Africa 3,861 3,050 2,768 2,908 2,767 2,715 2,74 r 2,605 2,735 2,759 57 Egypt 196 225 210 247 225 217 198 216 221 241 58 Morocco 481 429 514 585 594 628 639 602 577 565 59 South Africa 633 671 465 567 493 468 515 441 512 572 60 Zaire 4 2 1 1 1 1 1 1 11 1 61 Oil-exporting countries' 1,129 856 552 516 501 478 474 470 462 429 62 Other 1,418 867 1,026 992 953 923 914' 875 952 951 63 Other 2,860 3,129 2,467 3,665 3,363 3,511 3,795r 3,991 3,202 5,469 64 Australia 2,037 2,186 1,622 2.645 2,620 2,333 2,513 3,172 2,592 3,784 65 Other 823 943 845 1,020 743 1,178 l,282r 819 610 1,685 66 Nonmonetary international and regional organizations6. . . 2,405 4,591 1,931 3,814 2,716 3,494 3,029 2,114 2,032 1,706 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 • January 1997 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States' Payable in U.S. Dollars Millions of dollars, end of period 1996 TTyyppee ooff ccllaaiimm Mar. Apr. May Juner Julyr Aug. Sept.p 1 Total 575,818 599,549 655,518 659,897 661,316 2 Banks' claims 488,497 483,270 532,751 531,842 527.801 519,789 536,239 545,132 546,785 544,837 3 Foreign public borrowers 29,228 23,416 22.522 27,751 26,254 22,208 22,950 20,238 18,882 22,659 4 Own foreign offices2 285,510 283,183 307,509 298,122 299,438 301.887 307,792 298,847 300,149 311,335 5 Unaffiliated foreign banks 100,865 109,228 101.410 103,518 101,183 98.364 105,348 108,753 111,637 109,701 6 Deposits 49,892 59,250 37,658 42,153 37,662 35.588 33,998 36,145 39,338 35,719 / Other 50,973 49,978 63,752 61,365 63,521 62,776 71,350 72,608 72,299 73,982 All other foreigners 72,894 67,443 101,310 102,451 100,926 97,330 100,149 117,294 116,117 101,142 9 Claims of banks' domestic customers3 87,321 116,279 122,767 128,055 125,077 10 Deposits 41,734 64,829 58,519 68,837 71,441 11 Negotiable and readily transferable instruments4 31,186 36,008 44,161 41,401 3377,,333311 12 Outstanding collections and other claims 14,401 15,442 20,087 17.817 16,305 MEMO 13 Customer liability on acceptances 7,920 8,427 8,410 9,031 9,335 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 29,150 32,796 30,717 32,913 32,384 34,258 31,136 32,270 33,527 32,970 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 States' Payable in U.S. Dollars Millions of dollars, end of period 1995 1996 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999922 11999933 11999944 Sept. Dec. Mar. June 1 Total 195,119 202,566 200,070 220,439 225,141 233,558 228,494 BY borrower 2 Maturity of one year or less 163,325 172,662 168,359 182,006 178,785 193,742 185,976 3 Foreign public borrowers 17,813 17,828 15,435 14,192 15,015 19,567 14,847 4 All other foreigners 145,512 154,834 152,924 167,814 163,770 174,175 171,129 5 Maturity of more than one year 31,794 29,904 31,711 38,433 46,356 39,816 42,518 6 Foreign public borrowers 13,266 10,874 7,838 8.220 7,506 8,104 8,130 7 All other foreigners 18,528 19,030 23,873 30,213 38,850 31,712 34,388 By area Maturity of one year or less 8 Europe 53,300 57,413 55,770 54,211 55,622 57.988 57,157 9 Canada 6,091 7,727 6.690 8,048 6,771 5,473 6,810 10 Latin America and Caribbean 50,376 60,490 58,877 71,325 72,396 84,240 78,490 11 Asia 45,709 41,418 39,851 42,767 40,312 40,317 38,282 12 Africa 1,784 1,820 1,376 1,285 1,295 1,326 1,279 13 All other1 6,065 3,794 5,795 4,370 2,389 4,398 3,958 Maturity of more than one year 14 Europe 5,367 5,310 4,203 4,658 4,995 6,833 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 20.264 27,845 19,525 19,519 17 Asia 5,038 5,606 5,318 7.385 8,052 8,490 9,088 18 Africa 2,380 1,935 1,583 1,406 1,447 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

Nonbank-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 344.7 407.7 486.1 486.4 497.4r 543.1r 528.8r 531.3r 551.9r 573.6r 607.8r 2 G-10 countries and Switzerland 131.3 161.8 173.3 182.6 190.6 211.5 204.4 200.0 206.0 202.6r 222.3r 3 Belgium and Luxembourg .0 7.4 8.6 9.6 7.0 10.2 9.4 10.7 13.6 11.0r 7.9r 4 France 15.3 12.0 18.6 20.7 19.1 19.9 19.9 18.0 19.4 17.9 18.0r 5 Germany 9.1 12.6 24.7 24.0 24.7 31.2 30.0 27.5 27.3 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 4.4 3.7 3.0 4.7 8 Sweden 2.3 2.7 3.0 2.6 2.7 3.1 3.1 2.9 2.7 3.3 2.7 9 Switzerland 4.8 5.9 5.4 5.5 5.1 5.7 6.2 6.6 6.7 5.2 6.3 10 United Kingdom 59.7 84.3 64.9 78.4 85.8 90.1 87.1 80.3 82.4 84.8 101.6r 11 Canada 6.3 6.9 9.9 10.2 10.0 10.8 11.3 13.0 10.3 9.7 11.1 12 Japan 18.8 17.6 20.7 16.5 20.7 26.2 22.7 24.0 28.5 22.9 23.8r 13 Other industrialized countries 24.0 25.6 42.6 42.6 45.2 44.1 43.3 50.2 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 98.5 103.6 104.0 112.6 118.r 126.1r 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 18.3r 21,7r 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 17.9 17.6 16.3 17.3 16.1 15.4 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 Mainland .7 2.0 .8 1.0 1.1 1.1 1.4 1.7 1.8 3.3 2.9 40 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 ,5r ,5r 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 .8 .9 .8 .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 Yugoslavia-1 .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 72.2r 84.8r 82.7r 86.9r 99.2r 101.5r 106.0r 57 Bahamas 6.9 10.9 13.3 13.8 10.2r 12.5 8.4 12.6 11.0 13.9 17.3 58 Bermuda 6.2 8.9 6.5 6.0 8.4 8.7 8.4 6.1 6.3 5.3 4.1 59 Cayman Islands and other British West Indies 21.5 18.0 23.8 21.5 20.8r 19.8r 24.2r 24.3r 32.2r 28.7r 26.0r 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 18.1 2L8 203 19^9 22^5 23! 1 23.1 25 J 25.1 21.% 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 62.2r 72.3r 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 • January 1997 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1995 1996 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999922 11999933 11999944 Mar. June Sept. Dec. Mar. Junep 1 Total 45,511 50,597 54,309 50,187 49,973 47,673 46,448 49,907 48,971 2 Payable in dollars 37.456 38,728 38,298 35,903 34,281 33,908 33,903 36,273 35,366 3 Payable in foreign currencies 8,055 11,869 16,011 14,284 15.692 13,765 12,545 13.634 13,605 By type 4 Financial liabilities 23,841 29,226 32,954 29.775 29,282 26,237 24,241 26.570 24,817 5 Payable in dollars 16,960 18,545 18,818 16,704 15,028 13,872 12,903 13.831 12,185 6 Payable in foreign currencies 6,881 10.681 14,136 13,071 14,254 12,365 11,338 12,739 12,632 7 Commercial liabilities 21,670 21.371 21,355 20,412 20,691 21,436 22,207 23,337 24,154 8 Trade payables 9.566 8,802 10,005 9,844 10,527 10,061 11.013 10,815 11,089 9 Advance receipts and other liabilities 12,104 12,569 11,350 10,568 10,164 11,375 11,194 12.522 13,065 10 Payable in dollars 20,496 20,183 19,480 19,199 19,253 20,036 21.000 22,442 23.181 11 Payable in foreign currencies 1,174 1.188 1,875 1,213 1,438 1,400 1,207 895 973 By area or country Financial liabilities 12 Europe 13,387 18,810 21,703 17.541 18,223 16.401 15,622 16,950 16,434 13 Belgium and Luxembourg 414 175 495 612 778 347 369 483 498 14 France 1,623 2,539 1,727 2,046 1,101 1,365 999 1,679 861 15 Germany 889 975 1,961 1.755 1.589 1.670 1.974 2.161 1,850 16 Netherlands 606 534 552 633 530 474 466 479 444 17 Switzerland 569 634 688 883 1.056 948 895 1,260 1.156 18 United Kingdom 8.610 13,332 15.543 10,764 12,138 10,518 10,138 10,246 10.790 19 Canada 544 859 629 1,817 893 797 632 1,166 951 20 Latin America and Caribbean 4,053 3,359 2,034 2.065 1,950 1,904 1,783 1,876 969 21 Bahamas 379 1,148 101 135 81 79 59 78 31 22 Bermuda 114 0 80 149 138 144 147 126 28 23 Brazil 19 18 207 58 58 111 57 57 8 24 British West Indies 2.850 1,533 998 1,068 1.030 930 866 946 826 25 Mexico 12 17 0 10 3 3 12 16 11 26 Venezuela 6 5 5 5 4 3 2 2 1 27 Asia 5,818 5,956 8,403 8,156 8,023 6,947 5.988 6,390 6,351 28 Japan 4,750 4,887 7.314 7,182 7.141 6,308 5,436 5,980 6,051 29 Middle Eastern oil-exporting countries' 19 23 35 27 25 25 27 26 26 30 Africa 6 133 135 156 151 149 150 131 72 31 Oil-exporting countries" 0 123 123 122 122 122 122 122 61 32 All other3 33 109 50 40 42 39 66 57 40 Commercial liabilities 33 Europe 7,398 6.827 6,773 6,642 6,776 7,263 7,700 8.425 7,924 34 Belgium and Luxembourg 298 239 241 271 311 349 331 370 326 35 France 700 655 728 642 504 528 481 648 678 36 Germany 729 684 604 482 556 660 767 867 839 37 Netherlands 535 688 722 536 448 566 500 659 617 38 Switzerland 350 375 327 327 432 255 413 428 516 39 United Kingdom 2,505 2.039 2,444 2.848 2,902 3,351 3,568 3,525 3,266 40 Canada 1,002 879 1.037 1,235 1,146 1,219 1,040 959 998 41 Latin America and Caribbean 1,533 1,658 1,857 1,368 1,836 1.607 1,740 2,110 2,301 42 Bahamas 3 21 19 8 3 1 1 28 35 43 Bermuda 307 350 345 260 397 219 205 570 509 44 Brazil 209 214 161 96 107 143 98 128 119 45 British West Indies 33 27 23 29 12 5 56 10 10 46 Mexico 457 481 574 356 420 357 416 468 475 47 Venezuela 142 123 276 273 204 175 221 243 283 48 10,594 10,980 10.741 10,151 9,978 10,275 10,421 10,474 11.389 49 Japan 3,612 4,314 4.555 4,110 3,531 3,475 3,315 3,725 3,943 50 Middle Eastern oil-exporting countries' 1,889 1,534 1,576 1,787 1,790 1.647 1,912 1,747 1,784 51 Africa 568 453 428 463 481 589 619 708 924 52 Oil-exporting countries" 309 167 256 248 252 241 254 254 435 53 Other3 575 574 519 553 474 483 687 661 618 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 1995 1996 Type of claim, and area or country 11999922 11999933 11999944 Mar. June Sept. Dec. Mar. Junep 1 Total 45,073 49,159 57,888 52,218 58,051 53,424 52,509 55,394 58,829 2 Payable in dollars 42,281 45,161 53,805 48,425 54,138 49,696 48,711 50.995 53,984 3 Payable in foreign currencies 2,792 3,998 4,083 3,793 3,913 3,728 3,798 4,399 4,845 By type 4 Financial claims 26,509 27,771 33,897 29,606 34,574 29,891 27,398 30,760 33,978 5 Deposits 17,695 15,717 18,507 17,115 22,046 17.974 15,133 17,595 18.364 6 Payable in dollars 16,872 15,182 18,026 16.458 21,351 17,393 14,654 17,044 17,926 7 Payable in foreign currencies 823 535 481 657 695 581 479 551 438 8 Other financial claims 8.814 12,054 15,390 12,491 12,528 11,917 12,265 13,165 15,614 9 Payable in dollars 7,890 10,862 14,306 11,275 11,370 10,689 10.976 11,278 13,217 10 Payable in foreign currencies 924 1,192 1,084 1,216 1,158 1,228 1,289 1,887 2,397 11 Commercial claims 18,564 21,388 23,991 22,612 23,477 23,533 25,111 24,634 24,851 12 Trade receivables 16,007 18,425 21,158 20,415 21,326 21,409 22,998 22,123 22,276 13 Advance payments and other claims 2,557 2,963 2,833 2,197 2,151 2,124 2,113 2,511 2,575 14 Payable in dollars 17,519 19,117 21,473 20,692 21,417 21,614 23,081 22,673 22,841 15 Payable in foreign currencies 1,045 2,271 2,518 1,920 2,060 1,919 2,030 1,961 2,010 By area or country Financial claims 16 Europe 9,331 7,299 7,936 7,630 7,927 7.840 7,609 8,929 9,241 17 Belgium and Luxembourg 8 134 86 146 155 160 193 159 151 18 France 764 826 800 80S 730 753 803 1,015 679 19 Germany 326 526 540 527 356 301 436 320 296 20 Netherlands 515 502 429 606 601 522 517 486 488 21 Switzerland 490 530 523 490 514 530 498 470 461 22 United Kingdom 6,252 3,585 4,649 4,040 4,790 4,924 4,303 5,568 6,169 23 Canada 1,833 2,032 3,581 3,848 3,705 3,526 2,851 5,269 4,773 24 Latin America and Caribbean 13,893 16,224 19,536 16,109 21,159 15.345 14,500 13,815 17,628 25 Bahamas 778 1,336 2,424 940 2,355 1,552 1,965 1,538 2,168 26 Bermuda 40 125 27 37 85 35 81 77 84 27 Brazil 686 654 520 528 502 851 830 1,019 1,242 28 British West Indies 11,747 12,699 15,228 13,531 17,013 11,816 10,393 10,088 13,008 29 Mexico 445 872 723 583 635 487 554 461 392 30 Venezuela 29 161 35 27 27 50 32 40 23 31 Asia 864 1.657 1,871 1,504 1.235 2,160 1,579 1,890 1,571 32 Japan 668 892 953 621 471 1,404 871 1,171 852 33 Middle Eastern oil-exporting countries' 3 3 141 4 3 4 3 13 9 34 Africa 83 99 373 141 138 188 276 277 197 9 1 0 9 9 6 5 5 5 35 Oil-exporting countries 36 All other3 505 460 600 374 410 832 583 580 568 Commercial claims 8,451 9,105 9,540 8.947 9,200 8,862 9,824 9,776 9,812 37 Europe 189 184 213 199 218 224 231 247 239 38 Belgium and Luxembourg 1,537 1,947 1,881 1,790 1,669 1,706 1,830 1,803 1,658 39 France 933 1,018 1,027 977 1,023 997 1,070 1,410 1,335 40 Germany 552 423 311 324 341 338 452 442 481 41 Netherlands 362 432 557 556 612 438 520 579 602 42 Switzerland 2,094 2,377 2,556 2,388 2,469 2,479 2,656 2,607 2,651 43 United Kingdom 44 Canada 1,286 1,781 1,988 2,010 2,003 1,971 1,951 2,045 2,074 45 Latin America and Caribbean 3,043 3,274 4,117 4,140 4,370 4,359 4,364 4,151 4,340 46 Bahamas 28 11 9 17 21 26 30 30 28 47 Bermuda 255 182 234 208 210 245 272 273 264 48 Brazil 357 460 612 695 777 745 898 809 837 49 British West Indies 40 71 83 55 83 66 79 106 103 50 Mexico 924 990 1,243 1.106 1.109 1,026 993 870 1,021 51 Venezuela 345 293 348 295 319 325 285 308 313 52 Asia 4,866 6,014 6,982 6,200 6,516 6,826 7,312 7,100 6.883 53 Japan 1,903 2,275 2,655 1,911 2,011 1,998 1,870 2,010 1,877 54 Middle Eastern oil-exporting countries 693 704 708 689 707 775 974 1,024 879 5 5 5 6 Af O ric il a - exporting countries" ? 55 7 4 8 4 7 9 2 3 4 6 5 7 4 4 7 6 1 8 4 6 7 0 8 5 7 4 4 4 65 8 4 7 6 1 6 0 7 7 6 8 8 3 8 57 Other3 364 721 910 847 910 971 1,006 895 1,054 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 • January 1997 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1996 1996 Transaction, and area or country 1994 1995 J S a e n p . t - . Mar. Apr. May June July Aug. Sept.p U.S. corporate securities STOCKS 1 Foreign purchases 350,593 462,950 443,311 55,281 53,047 57,552 43,374 49,488 46,136 42,599 2 Foreign sales 348,716 451,710 433,447 54,450 48,774 56,068 42,361 52.142 44,071 42,550 3 Net purchases, or sales (—) 1,877 11,240 9,864 831 4,273 1,484 1,013 -2,654 2,065 49 4 Foreign countries 1,867 11,445 9,900 877 4,129 1,479 1,013 -2,653 2,051 75 5 Europe 6,714 4,912 6,058 1,377 1,429 -446 -308 -386 3,310 200 6 France -201 -1,099 -823 661 -336 -306 -339 -188 -209r -109 1 Germany 2,110 -1,837 1,011 86 174 -30 218 363 83 -85 8 Netherlands 2,251 3,507 1,518 208 237 -66 129 124 219 -13 9 Switzerland -30 -2,283 2,350 566 618 -140 78 615 538 -123 10 United Kingdom 840 8,066 1,065 -241 345 229 -416 -1,490 2,551 475 11 Canada -1,160 -1,517 784 -90 52 -394 81 31 -250 191 12 Latin America and Caribbean -2,111 5,814 4,258 -318 808 1,298 42 -1,077 1,046 252 13 Middle East1 -1,142 -337 -1,553 -33 -6 -261 -114 -15 -179 -153 14 Other Asia -1,234 2,503 360 -291 1,852 1,380 1,359 -1,347 -1,642 -575 15 Japan 1,162 -2,725 237 -749 1,446 73 802 -611 -791 110044 16 Africa 29 i -73 -44 31 6 -4 33 -33 --66 1/ Other countries 771 68 66 276 -37 -104 -43 108 -201 166 18 Nonmonetary international and regional organizations 10 -205 -36 -46 144 5 0 -1 14 -26 BONDS2 19 Foreign purchases 289,586 293,533 289,853 39,984 24,130 34,789 35,008 21,127 32,084 36,744 20 Foreign sales 229,665 206,951 197,883 25,151 18,705 24,094 25,688 17,458r 20,870 24,583 21 Net purchases, or sales (—) 59,921 86,582 91,970 14,833 5,425 10,695 9,320 10,269r 11,214 12,161 22 Foreign countries 59,036 87,036 91,774 14,745 5,394 10,690 9,305 10,152r 11,235 12,163 23 Europe 37,065 70,318 56,227 6,521 3,922 7,114 4,876 6,261' 5,966 6,962 24 France 242 1,143 4,115 670 785 113 326 334 169 565 25 Germany 657 5,938 5,134 467 721 891 1 255 585 381 26 Netherlands 3,322 1,463 1,666 -66 -52 371 53 442 146 244 21 Switzerland 1,055 494 965 -38 -144 178 233 258 105 403 28 United Kingdom 31,642 57,591 38,610 4,724 2,239 4,217 3,706 4,566r 4,148 4,876 29 Canada 2,958 2,569 3,223 149 359 952 314 514 474 122 30 Latin America and Caribbean 5,442 6,141 14,806 7,200 60 1,166 770 1,811 1,272 1,144 31 Middle East1 771 1,869 501 13 122 205 218 205 201 65 32 Other Asia 12,153 5,659 16,950 864 1,094 1,279 3,140 1,186 3,243 3,681 33 Japan 5,486 2,250 9,017 278 135 537 1,912 905 2,583 1,963 34 Africa -7 234 344 37 49 107 50 31 17 109 35 Other countries 654 246 -277 -39 -212 -133 -63 138 62 80 36 Nonmonetary international and regional organizations 885 -454 196 88 31 5 15 117 -21 -2 Foreign securities 37 Stocks, net purchases, or sales (-) -48,071 -50,291 -46,397 -10,345 -6,706 -3,167 -7,527 -3,639 — l,142r -1,733 38 Foreign purchases 386,106 345,540 327,921 36,115 37,764 43,515 36,728 37,643 34,016r 31,195 39 Foreign sales 434.177 395,831 374,318 46,460 44,470 46,682 44,255 41,282 35,158r 32,928 40 Bonds, net purchases, or sales ( —) -9,224 -48,545 -27,635 -6,038 -153 -527 -1,887 -3,396 -5,215 -4,431 41 Foreign purchases 848,368 889,471 798,031 93,345 81,256 82,453 82,907 80,703 84,448 113,080 42 Foreign sales 857,592 938,016 825,666 99,383 81.409 82,980 84,794 84,099 89,663 117,511 43 Net purchases, or sales (—), of stocks and bonds .... -57,295 -98,836 -74,032 -16,383 -6,859 -3,694 -9,414 -7,035 -6,357r -6,164 44 Foreign countries -57,815 -98,031 -73,692 -16,387 -6,802 -3,585 -9,361 -7,098 -6,215r -6,212 45 Europe -3,516 -48,125 -36.000 -4,508 -1,949 1,271 -8.356 -4,460 -5,298r -6,080 46 Canada -7,475 -7,952 -2,773 -1,865 614 -231 -472 829 856 222 47 Latin America and Caribbean -18,334 -7,634 -10,748 -2,582 -1,190 -2,044 975 -2,181 -1,415 -1,277 4488 -24,275 -34,056 -21,972 -5,756 -4,094 -2,260 -1,401 -1,174 - l,016r 971 4499 Japan -17,427 -25,072 -8,170 -3,224 -950 -921 -1,229 231 486 2,456 50 Africa -467 -327 -982 -436 -14 -32 -116 -53 -25 --4499 51 Other countries -3,748 63 -1,217 -1,240 -169 -289 9 -59 683 11 52 Nonmonetary international and regional organizations 520 -805 -340 4 -57 -109 -53 63 -142 48 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, 2. Includes state and local government securities and securities of U.S. government Saudi Arabia, and United Arab Emirates (Trucial States). agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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.- Mar. Apr. May June July Aug. Sept. Sept. 1 Total estimated 78,801 134,074 148,263 7,025 15,751 13,896 8,648 47,825 11,868 13,781 2 Foreign countries 78,637 133,552 150,593 6,414 17,126 13,658 9,459 48,261 11,832 13,938 3 Europe 38,542 50,000 78,366 4,083 8,712 7,290 5,734 18,137 6,751 11,906 4 Belgium and Luxembourg 1,098 591 1,100 81 399 -153 221 -39 73 489 5 Germany 5,709 6,136 10,311 958 1,833 1,674 1,196 1,233 467 -264 6 Netherlands 1,254 1,891 -1,690 -1,597 -2.137 -757 1,067 694 -237 116 7 Sweden 794 358 2,200 372 286 342 -29 322 -282 431 8 Switzerland 481 -472 1,650 65 1,329 555 -842 395 -730 718 9 United Kingdom 23,365 34,778 44,299 2,270 6,070 2,987 5,190 10,911 7,271 6,779 10 Other Europe and former U.S.S.R 5,841 6,718 20,496 1,934 932 2,642 -1,069 4,621 189 3,637 11 Canada 3,491 252 5,260 35 1,766 -669 -139 1,714 -1,140 -37 1? Latin America and Caribbean -10,383 48,609 -4,073 -4,985 1,993 -1,167 1,524 23,991 -491 -19,359 13 Venezuela -319 -2 -184 -44 4 -39 13 16 146 -45 14 Other Latin America and Caribbean -20,493 25,152 4,093 -2,696 3,865 -2.195 -4,434 986 3,088 -1,547 15 Netherlands Antilles 10,429 23,459 -7,982 -2,245 -1,876 1,067 5,945 22,989 -3,725 -17,767 16 47,317 32.319 69,408 6,941 4,478 8,216 2,919 4,183 6,359 20,776 17 Japan 29,793 16,863 26,040 2,443 2,382 4,565 879 2,225 2,920 4,938 18 Africa 240 1,464 1,112 311 250 -48 22 -31 163 30 19 Other -570 908 520 29 -73 36 -601 267 190 622 20 Nonmonetary international and regional organizations 164 522 -2,330 611 -1,375 238 -811 -436 36 -157 21 International 526 92 -1,355 647 -414 -9 -747 -395 -287 -52 22 Latin American regional -154 261 -1.025 12 -1,008 9 7 -3 347 -90 MEMO 23 Foreign countries 78,637 133,552 150,593 6.414 17,126 13,658 9,459 48,261 11,832 13,938 24 Official institutions 41,822 39,632 64,535 4,748 8,253 6,482 -6,648 9,629 3,587 17,188 25 Other foreign 36,815 93,920 86,058 1,666 8,873 7,176 16,107 38,632 8,245 -3,250 Oil-exporting countries 26 Middle East" -38 3,075 9,492 1,127 863 2,172 793 -219 323 4,969 27 0 2 1 0 0 1 -1 0 -1 1 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 Nov. 30, 1996 Rate on Nov. 30, 1996 Country Country Month Month effective effective Austria. . 2.5 Apr. 1996 Germany . . . 2.5 Apr. 1996 Belgium. 2.5 Apr. 1995 Italy 7.5 Oct. 1996 Canada. . 3.25 Nov. 1996 Japan .5 Sept. 1995 Denmark 3.25 Apr. 1996 Netherlands . 2.5 Apr. 1996 France2 . 3.2 Oct. 1996 Switzerland . 1.0 Sept. 1996 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'' May June July Aug. Sept. Oct. Nov. 1 Eurodollars 3.18 4.63 5.93r 5.36 5.46 5.49 5.41 5.49 5.41 5.38 2 United Kingdom 5.88 5.45 6.63 6.03 5.80 5.69 5.72 5.75 5.93 6.27 3 Canada 5.14 5.57 7.14r 4.82 4.87 4.76 4.30 4.10 3.54 3.05 4 Germany 7.17 5.25 4.43r 3.19 3.29 3.29 3.20 3.02 3.04 3.09 5 Switzerland 4.79 4.03 2.94 1.99 2.53 2.52 2.21 1.82 1.56 1.80 6 Netherlands 6.73 5.09 4.30r 2.61 2.81 2.99 2.90 2.70 2.82 2.92 7 France 8.30 5.72 6.43r 3.78 3.85 3.73 3.84 3.63 3.39 3.35 8 Italy 10.09 8.45 10.43r 8.88 8.73 8.72 8.77 8.42 7.99 7.40 9 Belgium 8.10 5.65 4.73 3.19 3.23 3.29 3.21 3.04 3.02 3.03 10 Japan 2.96 2.24 1.20 .62 .57 .67 .62 .53 .52 .51 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 • January 1997 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar except as noted 1996 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999933 11999944 11999955 June July Aug. Sept. Oct. Nov. 1 Australia/dollar2 67.993 73.161 74.073 79.122 78.974 78.305 79.279 79.179 79.684 2 Austria/schilling 11.639 11.409 10.076 10.755 10.576 10.435 10.610 10.748 10.640 3 Belgium/franc 34.581 33.426 29.472 31.433 30.947 30.553 31.056 31.471 31.172 4 Canada/dollar 1.2902 1.3664 1.3725 1.3658 1.3697 1.3722 1.3694 1.3508 1.3381 5 China, P.R./yuan 5.7795 8.6404 8.3700 8.3424 8.3409 8.3379 8.3341 8.3299 8.3294 6 Denmark/krone 6.4863 6.3561 5.5999 5.8941 5.8014 5.7327 5.8057 5.8576 5.8053 7 Finland/markka 5.7251 5.2340 4.3763 4.6710 4.5812 4.4793 4.5421 4.5694 4.5512 8 France/franc 5.6669 5.5459 4.9864 5.1787 5.0881 5.0636 5.1307 5.1652 5.1156 9 Germany/deutsche mark 1.6545 1.6216 1.4321 1.5282 1.5025 1.4826 1.5080 1.5277 1.5118 10 Greece/drachma 229.64 242.50 231.68 241.75 237.65 237.00 239.67 239.76 238.38 11 Hong Kong/dollar 7.7357 7.7290 7.7357 7.7404 7.7379 7.7345 7.7328 7.7322 7.7323 12 India/rupee 31.291 31.394 32.418 35.100 35.667 35.800 35.870 35.804 35.892 13 Ireland/pound2 146.47 149.69 160.35 158.31 160.31 161.08 160.96 160.83 166.45 14 Italy/lira 1,573.41 1,611.49 1,629.45 1.542.30 1,526.82 1,516.62 1,520.48 1,523.82 1,513.66 15 Japan/yen 111.08 102.18 93.96 108.96 109.19 107.87 109.93 112.41 112.30 16 Malaysia/ringgit 2.5738 2.6237 2.5073 2.4967 2.4915 2.4933 2.5009 2.5074 2.5234 17 Netherlands/guilder 1.8585 1.8190 1.6044 1.7120 1.6862 1.6633 1.6905 1.7141 1.6958 18 New Zealand/dollar2 54.127 59.358 65.625 67.650 69.001 68.860 69.640 70.07 r 70.975 19 Norway/krone 7.1009 7.0553 6.3355 6.5376 6.4465 6.4153 6.4613 6.4810 6.3554 20 Portugal/escudo 161.08 165.93 149.88 157.40 154.56 152.27 153.99 154.28 152.83 21 Singapore/dollar 1.6158 1.5275 1.4171 1.4090 1.4160 1.4124 1.4086 1.4124 1.4025 22 South Africa/rand 3.2729 3.5526 3.6284 4.3519 4.3963 4.5289 4.5489 4.5799 4.6577 23 South Korea/won 805.75 806.93 772.69 798.45 813.03 817.52 822.40 828.24 830.56 24 Spain/peseta 127.48 133.88 124.64 128.87 126.96 125.72 127.11 128.60 127.28 25 Sri Lanka/rupee 48.211 49.170 51.047 55.529 55.293 55.603 56.050 57.016 56.987 26 Sweden/krona 7.7956 7.7161 7.1406 6.6807 6.6394 6.6211 6.6427 6.6006 6.6269 27 Switzerland/franc 1.4781 1.3667 1.1812 1.2579 1.2320 1.2029 1.2343 1.2586 1.2752 28 Taiwan/dollar 26.416 26.465 26.495 27.674 27.573 27.496 27.500 27.532 27.522 29 Thailand/baht 25.333 25.161 24.921 25.354 25.355 25.289 25.407 25.474 25.459 30 United Kingdom/pound2 150.16 153.19 157.85 154.16 155.30 154.99 155.93 158.63 166.23 MEMO 31 United States/dollar3 93.18 91.32 84.25 88.16 87.25 86.54 87.46 87.99 86.98 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 December 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 A72 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 September 30, 1995 January 1996 A68 March 31, 1996 July 1996 A64 June 30, 1996 October 1996 A64 September 30, 1996 January 1997 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 All 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 • January 1997 4.31 PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES A. Pro forma balance sheet Millions of dollars Item Sept. 30, 1996 Sept. 30, 1995 Short-term assets (Note 1) Imputed reserve requirement on clearing balances 590.0 440.2 Investment in marketable securities 5,310.0 3,961.8 Receivables 63.1 59.4 Materials and supplies 11.4 9.2 Prepaid expenses 29.1 35.4 Items in process of collection 1,207.9 1,914.2 Total short-term assets 7,211.6 6,420.2 Long-term assets (Note 2) 386.0 355.7 Furniture and equipment 149.9 165.1 Leases and leasehold improvements 22.1 22.4 Prepaid pension costs 276.0 233.2 Total long-term assets 834.0 776.4 Total assets 8,045.6 7,196.6 Short-term liabilities Clearing balances and balances arising from early credit of uncollected items 6,212.3 4,430.3 Deferred-availability items 895.6 1,885.9 Short-term debt 103.7 104.0 Total short-term liabilities 7,211.6 6,420.2 Long-term liabilities Obligations under capital leases 2.3 3.8 Long-term debt 184.4 162.0 Postretirement/postemployment benefits obligation 187.7 173.4 Total long-term liabilities 374.4 339.2 Total liabilities 7,586.0 6,759.4 459.6 437.2 Total liabilities and equity (Note 3) 8,045.6 7,196.6 NOTE. Components may not sum to totals because of rounding. The priced services (2) LONG-TERM ASSETS financial statements consist of these tables and the accompanying notes. Consists of long-term assets used solely in priced services, the priced-services portion of (1) SHORT-TERM ASSETS long-term assets shared with nonpriced services, and an estimate of the assets of the Board of Governors used in the development of priced services. Effective Jan. 1, 1987, the Reserve The imputed reserve requirement on clearing balances held at Reserve Banks by depository Banks implemented the Financial Accounting Standards Board's Statement of Financial institutions reflects a treatment comparable to that of compensating balances held at corre- Accounting Standards No. 87, Employers' Accounting for Pensions (SFAS 87). Accordingly, spondent banks by respondent institutions. The reserve requirement imposed on respondent the Federal Reserve Banks recognized credits to expenses of $9.6 million in the third quarter balances must be held as vault cash or as nonearning balances maintained at a Reserve Bank; of 1996, $12.0 million in the second quarter of 1996, $12.2 million in the first quarter of 1996, thus, a portion of priced services clearing balances held with the Federal Reserve is shown as $9.3 million in the third quarter of 1995, $8.7 million in the second quarter of 1995, and $7.2 required reserves on the asset side of the balance sheet. The remainder of clearing balances is million in the first quarter of 1995, and corresponding increases in this asset account. assumed to be invested in three-month Treasury bills, shown as investment in marketable securities. Receivables are (1) amounts due the Reserve Banks for priced services and (2) the share of (3) LIABILITIES AND EQUITY suspense-account and difference-account balances related to priced services. Materials and supplies are the inventory value of short-term assets. Under the matched-book capital structure for assets that are not "self-financing," short-term Prepaid expenses include salary advances and travel advances for priced-service personnel. assets are financed with short-term debt. Long-term assets are financed with long-term debt Hems in process of collection is gross Federal Reserve cash items in process of collection and equity in a proportion equal to the ratio of long-term debt to equity for the fifty largest (CIPC) stated on a basis comparable to that of a commercial bank. It reflects adjustments for bank holding companies, which are used in the model for the private-sector adjustment factor intra-System items that would otherwise be double-counted on a consolidated Federal (PSAF). The PSAF consists of the taxes that would have been paid and the return on capital Reserve balance sheet; adjustments for items associated with non-priced items, such as those that would have been provided had priced services been furnished by a private-sector firm. collected for government agencies; and adjustments for items associated with providing fixed Other short-term liabilities include clearing balances maintained at Reserve Banks and availability or credit before items are received and processed. Among the costs to be deposit balances arising from float. Other long-term liabilities consist of obligations on capital recovered under the Monetary Control Act is the cost of float, or net CIPC during the period leases. (the difference between gross CIPC and deferred-availability items which is the portion of gross CIPC that involves a financing cost), valued at the federal funds rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A65 4.31 PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES B. Pro forma income statement Millions of dollars Item Quarter ending Sept. 30, 1996 Quarter ending Sept. 30, 1995 Revenue from services provided to depository institutions (Note 4) 196.8 182.4 Operating expenses (Note 5) 167.5 160.1 Income from operations 29.4 22.3 Imputed costs (Note 6) Interest on float 2.7 3.2 Interest on debt 4.3 4.1 Sales taxes 3.1 2.4 FDIC insurance 0.0 10.1 .4 10.0 Income from operations after imputed costs 19.4 12.3 Other income and expenses (Note 7) Investment income on clearing balances 82.2 64.4 Earnings credits 72.9 9.2 58.5 5.8 Income before income taxes 28.6 18.1 Imputed income taxes (Note 8) 8.5 5.6 Income before cumulative effect of a change in accounting principle 20.0 12.5 Cumulative effect on previous years from retroactive application of accrual method of accounting for postemployment benefits (net of $6.5 million tax) (Note 9) Net income 20.0 12.5 MEMO Targeted return on equity (Note 10) 10.1 7.8 Nine months ending Sept. 30, 1996 Nine months ending Sept. 30, 1995 Revenue from services provided to depository institutions (Note 4) 586.9 547.5 Operating expenses (Note 5) 490.7 490.8 Income from operations 96.1 56.7 Imputed costs (Note 6) Interest on float 14.5 12.0 Interest on debt 13.0 12.2 Sales taxes 8.5 7.5 FDIC insurance 0.0 35.9 5.8 37.4 Income from operations after imputed costs 60.2 19.2 Other income and expenses (Note 7) Investment income on clearing balances 229.4 189.8 Earnings credits 206.9 22.4 168.7 21.1 Income before income taxes 82.6 40.4 Imputed income taxes (Note 8) 24.7 12.5 Income before cumulative effect of a change in accounting principle 57.9 27.9 Cumulative effect on previous years from retroactive application of accrual method of accounting for postemployment benefits (net of $6.5 million tax) (Note 9) -14.6 Net income 57.9 13.3 MEMO Targeted return on equity (Note 10) 31.1 25.5 NOTE. Components may not sum to totals because of rounding. The priced services Unrecovered float includes float generated by services to government agencies and by other financial statements consist of these tables and the accompanying notes. central bank services. Float recovered through income on clearing balances is the result of the increase in investable clearing balances; the increase is produced by a deduction for float for (4) REVENUE cash items in process of collection, which reduces imputed reserve requirements. The income on clearing balances reduces the float to be recovered through other means. As-of adjustments Revenue represents charges to depository institutions for priced services and is realized from and direct charges are mid-week closing float and interterritory check float, which may be each institution through one of two methods: direct charges to an institution's account or recovered from depositing institutions through adjustments to the institution's reserve or charges against its accumulated earnings credits. clearing balance or by valuing the float at the federal funds rate and billing the institution directly. Float recovered through per-item fees is valued at the federal funds rate and has been (5) OPERATING EXPENSES added to the cost base subject to recovery in the second quarters of 1996 and 1995. Operating expenses consist of the direct, indirect, and other general administrative expenses (7) OTHER INCOME AND EXPENSES of the Reserve Banks for priced services plus the expenses for staff members of the Board of Governors working directly on the development of priced services. The expenses for Board Consists of investment income on clearing balances and the cost of earnings credits. staff members were $.7 million per quarter in the first three quarters of 1996 and 1995. The Investment income on clearing balances represents the average coupon-equivalent yield on credit to expenses under SFAS 87 (see note 2) is reflected in operating expenses. three-month Treasury bills applied to the total clearing balance maintained, adjusted for the effect of reserve requirements on clearing balances. Expenses for earnings credits granted to depository institutions on their clearing balances are derived by applying the average federal (6) IMPUTED COSTS funds rate to the required portion of the clearing balances, adjusted for the net effect of Imputed costs consist of interest on float, interest on debt, sales taxes, and the FDIC reserve requirements on clearing balances. assessment. Interest on float is derived from the value of float to be recovered, either (8) INCOME TAXES explicitly or through per-item fees, during the period. Float costs include costs for checks, book-entry securities, noncash collection, ACH, and funds transfers. Imputed income taxes are calculated at the effective tax rate derived from the PSAF model Interest is imputed on the debt assumed necessary to finance priced-service assets. The (see note 3). sales taxes and FDIC assessment that the Federal Reserve would have paid had it been a (9) POSTEMPLOYMENT BENEFITS private-sector firm are among the components of the PSAF (see note 3). The following list shows the daily average recovery of float by the Reserve Banks for the Effective Jan. 1, 1995, the Reserve Banks implemented SFAS 112, Employers' Accounting third quarter of 1996 and 1995 in millions of dollars: for Postemployment Benefits. Accordingly in the first quarter of 1995 the Reserve Banks recognized a one-time cumulative charge of $21.1 million to reflect the retroactive application 1996 1995 of this change in accounting principle. (10) RETURN ON EQUITY Total float 476.2 391.2 Unrecovered float 1.0 4.6 Represents the after-tax rate of return on equity that the Federal Reserve would have earned Float subject to recovery 475.2 386.6 had it been a private business firm, as derived from the PSAF model (see note 3). This amount Sources of float recovery is adjusted to reflect the recovery of automation consolidation costs of $.9 million for the third Income on clearing balances 47.5 38.5 quarter of 1996, SI.6 million for the second quarter of 1996, $1.2 million for the first quarter As-of adjustments 277.1 174.1 of 1996, $(.06) million for the third quarter of 1995, $1.7 million for the second quarter of Direct charges 69.8 66.2 1995. and $.3 million for the first quarter of 1995. The Reserve Banks plan to recover these Per-item fees (80.7) 107.8 amounts, along with a finance charge, by the end of the year 2001. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Index to Statistical Tables References are to pages A3-A65 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Discounts and advances by Reserve Banks (See Loans) Assets and liabilities (See also Foreigners) Dividends, corporate, 32 Banks, by classes, 17-21 Domestic finance companies, 33 EMPLOYMENT 42 Federal Reserve Banks, 10 Eurodollars, 23 Financial institutions, 25 Foreign-related institutions, 21 FARM mortgage loans, 35 Automobiles Federal agency obligations, 5, 9, 10, 11, 28, 29 Consumer installment credit, 36 Federal credit agencies, 30 Production, 44, 45 Federal finance Debt subject to statutory limitation, and types and ownership BANKERS acceptances, 10, 11, 23 of gross debt, 27 Bankers balances, 17-21. (See also Foreigners) Receipts and outlays, 25, 26 Bonds (See also U.S. government securities) Treasury financing of surplus, or deficit, 25 New issues, 31 Treasury operating balance, 25 Rates, 23 Federal Financing Bank, 30 Business activity, nonfinancial, 42 Federal funds, 6, 23, 25 Business loans (See Commercial and industrial loans) Federal Home Loan Banks, 30 Federal Home Loan Mortgage Corporation, 30, 34, 35 Federal Housing Administration, 30, 34, 35 CAPACITY utilization, 43 Federal Land Banks, 35 Capital accounts Federal National Mortgage Association, 30, 34, 35 Banks, by classes, 17 Federal Reserve Banks Federal Reserve Banks, 10 Condition statement, 10 Central banks, discount rates, 61 Discount rates (See Interest rates) Certificates of deposit, 23 U.S. government securities held, 5, 10, 11, 27 Commercial and industrial loans Federal Reserve credit, 5, 6, 10, 11 Commercial banks, 17-21 Federal Reserve notes, 10 Weekly reporting banks, 17-21 Federal Reserve System Commercial banks Balance sheet for priced services, 64, 65 Assets and liabilities, 17-21 Condition statement for priced services, 64, 65 Commercial and industrial loans, 17-21 Federally sponsored credit agencies, 30 Consumer loans held, by type and terms, 36 Finance companies Deposit interest rates of insured, 15 Assets and liabilities, 33 Real estate mortgages held, by holder and property, 35 Business credit, 33 Time and savings deposits, 4 Loans, 36 Commercial paper, 22, 23, 33 Paper, 22, 23 Condition statements (See Assets and liabilities) Float, 5 Construction, 42. 46 Flow of funds, 37-41 Consumer installment credit, 36 Foreign currency operations, 10 Consumer prices, 42 Foreign deposits in U.S. banks, 5 Consumption expenditures, 49, 50 Foreign exchange rates, 62 Corporations Foreign-related institutions, 21 Profits and their distribution, 32 Foreign trade, 51 Security issues, 31, 61 Foreigners Cost of living (See Consumer prices) Claims on. 52, 55, 56, 57, 59 Credit unions, 36 Liabilities to, 20, 51, 52, 53, 58, 60, 61 Currency in circulation, 5, 13 Customer credit, stock market, 24 GOLD Certificate account, 10 Stock, 5, 51 DEBITS to deposit accounts, 16 Debt (See specific types of debt or securities) Government National Mortgage Association, 30, 34, 35 Gross domestic product, 48 Demand deposits Banks, by classes, 17-21 Turnover, 16 HOUSING, new and existing units, 46 Depository institutions Reserve requirements, 8 INCOME and expenses, Federal Reserve System, 64, 65 Reserves and related items, 4, 5, 6, 12 Income, personal and national, 42, 48, 49 Deposits (See also specific types) Industrial production, 42, 44 Banks, by classes, 4, 17-21 Installment loans, 36 Federal Reserve Banks, 5, 10 Insurance companies, 27, 35 Interest rates, 15 Interest rates Turnover, 16 Bonds, 23 Discount rates at Reserve Banks and at foreign central banks and Consumer installment credit, 36 foreign countries (See Interest rates) Deposits, 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A67 Interest rates—Continued Reserve requirements, 8 Federal Reserve Banks, 7 Reserves Foreign central banks and foreign countries, 61 Commercial banks, 17 Money and capital markets, 23 Depository institutions, 4, 5, 6, 12 Mortgages, 34 Federal Reserve Banks, 10 Prime rate, 22 U.S. reserve assets, 51 International capital transactions of United States, 50-61 Residential mortgage loans, 34 International organizations, 52, 53, 55, 58, 59 Retail credit and retail sales, 36, 42 Inventories, 48 Investment companies, issues and assets, 32 SAVING Investments (See also specific types) Flow of funds, 37^11 Banks, by classes, 17-21 National income accounts, 48 Commercial banks, 4, 17-21 Savings institutions, 35, 36, 37 Federal Reserve Banks, 10, 11 Savings deposits (See Time and savings deposits) Financial institutions, 35 Securities (See also specific types) Federal and federally sponsored credit agencies, 30 LABOR force, 42 Foreign transactions, 60 Life insurance companies (See Insurance companies) New issues, 31 Loans (See also specific types) Prices, 24 Banks, by classes, 17-21 Special drawing rights, 5, 10, 50, 51 Commercial banks, 17-21 State and local governments Federal Reserve Banks, 5, 6, 7, 10, 11 Holdings of U.S. government securities, 27 Federal Reserve System, 64, 65 New security issues, 31 Financial institutions, 35 Rates on securities, 23 Insured or guaranteed by United States, 34, 35 Stock market, selected statistics, 24 Stocks (See also Securities) MANUFACTURING New issues, 31 Capacity utilization, 43 Prices, 24 Production, 43, 45 Margin requirements, 24 Student Loan Marketing Association, 30 Member banks (See also Depository institutions) Federal funds and repurchase agreements, 6 TAX receipts, federal, 26 Reserve requirements, 8 Thrift institutions, 4. (See also Credit unions and Savings Mining production, 45 institutions) Mobile homes shipped, 46 Time and savings deposits, 4, 13, 15 Monetary and credit aggregates, 4, 12 Trade, foreign, 51 Money and capital market rates, 23 Treasury cash, Treasury currency, 5 Money stock measures and components, 4, 13 Treasury deposits, 5, 10, 25 Mortgages (See Real estate loans) Treasury operating balance, 25 Mutual funds, 32 UNEMPLOYMENT, 42 Mutual savings banks (See Thrift institutions) U.S. government balances Commercial bank holdings, 17-21 NATIONAL defense outlays, 26 Treasury deposits at Reserve Banks, 5, 10, 25 National income, 48 U.S. government securities Bank holdings, 17-21, 27 OPEN market transactions, 9 Dealer transactions, positions, and financing, 29 Federal Reserve Bank holdings, 5, 10, 11, 27 PERSONAL income, 49 Foreign and international holdings and Prices transactions, 10, 27, 61 Consumer and producer, 42, 47 Open market transactions, 9 Stock market, 24 Outstanding, by type and holder, 27, 28 Prime rate, 22 Rates, 23 Producer prices, 42, 47 U.S. international transactions, 50-62 Production, 42, 44 Utilities, production, 45 Profits, corporate, 32 VETERANS Administration, 34, 35 REAL estate loans Banks, by classes, 17-21, 35 WEEKLY reporting banks, 17-21 Terms, yields, and activity, 34 Wholesale (producer) prices, 42, 47 Type of holder and property mortgaged, 35 Repurchase agreements, 6 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 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 SUPERVISION AND REGULATION JOYCE K. ZICKLER, Assistant Director RICHARD SPILLENKOTHEN, Director JOHN J. MINGO, Senior Adviser 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

A69 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 JOSEPH H. HAYES, JR., Assistant Director JOHN H. PARRISH, Assistant Director FRED HOROWITZ, Assistant Director FLORENCE M. YOUNG, Assistant Director OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE CONTROLLER BRENT L. BOWEN, Inspector General GEORGE E. LIVINGSTON, Controller DONALD L. ROBINSON, Assistant Inspector General STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) BARRY R. SNYDER, Assistant Inspector General DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director MARIANNE M. EMERSON, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director EDWARD T. MULRENIN, Assistant Director DAY W. 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

A70 Federal Reserve Bulletin • January 1997 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman J. ALFRED BROADDUS, JR. LAWRENCE B. LINDSEY SUSAN M. PHILLIPS JACK GUYNN LAURENCE H. MEYER ALICE M. RIVLIN EDWARD W. KELLEY, JR. MICHAEL H. MOSKOW JANET L. YELLEN ROBERT T. PARRY ALTERNATE MEMBERS THOMAS M. HOENIG THOMAS C. MELZER ERNEST T. PATRIKIS JERRY L. JORDAN CATHY E. MINEHAN 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

A71 CONSUMER ADVISORY COUNCIL RICHARD S. AMADOR, LOS Angeles, California EUGENE I. LEHRMANN, Madison, Wisconsin THOMAS R. BUTLER, Riverwoods, Illinois ERROL T. LOUIS, Brooklyn, New York ROBERT A. COOK, Baltimore, Maryland WILLIAM N. LUND, Falmouth, Maine HERIBERTO FLORES, Springfield, Massachusetts RONALD A. PRILL, Minneapolis, Minnesota EMANUEL FREEMAN, Philadelphia, Pennsylvania LISA RICE-COLEMAN, Toledo, Ohio DAVID C. FYNN, Cleveland, Ohio JOHN R. RINES, Detroit, Michigan ROBERT G. GREER, Houston, Texas MARGOT SAUNDERS, Washington, D.C. KENNETH R. HARNEY, Chevy Chase, Maryland JULIA W. SEWARD, Richmond, Virginia GAIL K. HILLEBRAND, San Francisco, California GREGORY D. SQUIRES, Milwaukee, Wisconsin TERRY JORDE, Cando, North Dakota GEORGE P. SURGEON, Chicago, Illinois FRANCINE JUSTA, New York, New York THEODORE J. WYSOCKI, JR., Chicago, Illinois 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 LARRY T. WILSON, Raleigh, North Carolina DOUGLAS A. FERRARO, Englewood, Colorado WILLIAM W. ZUPPE, Spokane, Washington BEVERLY D. HARRIS, Livingston, Montana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Consumer and Community Affairs Handbook. $75.00 per year. MS-127, Board of Governors of the Federal Reserve System, Monetary Policy and Reserve Requirements Handbook. $75.00 Washington, DC 20551 or telephone (202) 452-3244 or FAX per year. (202) 728-5886. You may also use the publications order Securities Credit Transactions Handbook. $75.00 per year. form available on the Board's World Wide Web site The Payment System Handbook. $75.00 per year. (http://www.bog.frb.fed.us). When a charge is indicated, payment Federal Reserve Regulatory Service. Four vols. (Contains all should accompany request and be made payable to the Board of four Handbooks plus substantial additional material.) $200.00 Governors of the Federal Reserve System or may be ordered via per year. Mastercard or Visa. Payment from foreign residents should be Rates for subscribers outside the United States are as follows drawn on a U.S. bank. and include additional air mail costs: Federal Reserve Regulatory Service, $250.00 per year. Each Handbook, $90.00 per year. FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL COMPUTERS. Diskettes; updated monthly. BOOKS AND MISCELLANEOUS PUBLICATIONS Standalone PC. $300 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. Network, maximum 1 concurrent user. $300 per year. 1994. 157 pp. Network, maximum 10 concurrent users. $750 per year. ANNUAL REPORT. Network, maximum 50 concurrent users. $2,000 per year. ANNUAL REPORT: BUDGET REVIEW, 1995-96. Network, maximum 100 concurrent users. $3,000 per year. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 Subscribers outside the United States should add $50 to cover each in the United States, its possessions, Canada, and additional airmail costs. Mexico. Elsewhere, $35.00 per year or $3.00 each. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- ANNUAL STATISTICAL DIGEST: period covered, release date, num- COUNTRY MODEL, May 1984. 590 pp. $14.50 each. ber of pages, and price. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 1981 October 1982 239 pp. $ 6.50 440 pp. $9.00 each. 1982 December 1983 266 pp. $ 7.50 FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1983 October 1984 264 pp. $11.50 December 1986. 264 pp. $10.00 each. 1984 October 1985 254 pp. $12.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1985 October 1986 231 pp. $15.00 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 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 1990-95 November 1996 404 pp. $25.00 A Guide to Business Credit for Women, Minorities, and Small Businesses Series on the Structure of the Federal Reserve System SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF The Board of Governors of the Federal Reserve System CHARTS. Weekly. $30.00 per year or $.70 each in the United The Federal Open Market Committee States, its possessions, Canada, and Mexico. Elsewhere, Federal Reserve Bank Board of Directors $35.00 per year or $.80 each. 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 A Consumer's Guide to Mortgage Settlement Costs 1990. 646 pp. $10.00. A Consumer's Guide to Mortgage Refinancings REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL Home Mortgages: Understanding the Process and Your Right RESERVE SYSTEM. to Fair Lending ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— How to File a Consumer Complaint Regulation Z) Vol I (Regular Transactions). 1969. 100 pp. Making Deposits: When Will Your Money Be Available? Vol. II (Irregular Transactions). 1969. 116 pp. Each volume Making Sense of Savings $2.25. SHOP: The Card You Pick Can Save You Money GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 each. Welcome to the Federal Reserve FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated When Your Home is on the Line: What You Should Know monthly. (Requests must be prepaid.) About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 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

A74 Maps of the Federal Reserve System 1 ^ BOSTON MINN EAPOLIS • J C SH K 2 * Q • NEW YORK CHICAGO • m J FT 1122 ??LLEEVVBBLLAAJJ»»L D PHILADELPHIA • SA!> FRANCISCO 1100 KKAANNSSAA SCRRRFF RICHMOND ST. LOUIS J • M M F C SM •N 6 A LT • L ANTA • - * l i l i i » lt )ALLAS At.ASK \ 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 num- of Puerto Rico and the U.S. Virgin Islands; the San Fran ber and Reserve Bank city (shown on both pages) and by cisco Bank serves American Samoa, Guam, and the Com letter (shown on the facing page). monwealth of the Northern Mariana Islands. The Board of In the 12th District, the Seattle Branch serves Alaska, Governors revised the branch boundaries of the System and the San Francisco Bank serves Hawaii. 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

A75 5-E 1-A 2 -B 3 -C 4 -D Baltimore MD I 1 C'L t < • t Buffalo / NY ct sc BOSTON NEW YORK PHILADELPHIA RICHMOND 6-F 7 -G 8 -H •Nashville KY Birmingham m M • v/ MS !A • DETROIT* MO J Louisville VA LA s Jac % ks cmv ille Aft Jj 1 •Memphis New Orleans > ^ w Little) Roek { Miami ATLANTA CHICAGO ST Louis 9-1 MT • Hele na _ m & M MINNEAPOLIS 12-L 10-J wy 1 NE to Omaha* Denver riM 1 Oklahoim Cit> OK KANSAS CITY 11-K TX NM Salt Lake City H ^^ EL Past! •Los Angeles San AA * DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 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 William C. Brainard Cathy E. Minehan Frederick J. Mancheski Paul M. Connolly NEW YORK* 10045 John C. Whitehead William J. McDonough Thomas W. Jones Ernest T. Patrikis Buffalo 14240 Bal Dixit Carl W. Turnipseed1 PHILADELPHIA 19105 Donald J. Kennedy Edward G. Boehne Joan Carter William H. Stone, Jr. CLEVELAND* 44101 G. Watts Humphrey, Jr. Jerry L. Jordan David H. Hoag Sandra Pianalto Cincinnati 45201 To be announced Charles A. Cerino1 Pittsburgh 15230 To be announced Harold J. Swart1 RICHMOND* 23219 Claudine B. Malone J. Alfred Broaddus, Jr. Robert L. Strickland Walter A. Varvel Baltimore 21203 To be announced William J. Tignanelli1 Charlotte 28230 To be announced Dan M. Bechter1 ATLANTA 30303 Hugh M. Brown Jack Guynn David R. Jones Patrick K. Barron James M. Mckee Birmingham 35283 To be announced FredR. Herr1 Jacksonville 32231 To be announced James D. Hawkins1 Miami 33152 To be announced James T. Curry III Nashville 37203 To be announced Melvyn K. Purcell New Orleans 70161 To be announced Robert J. Musso CHICAGO* 60690 Lester H. McKeever, Jr. Michael H. Moskow Arthur C. Martinez William C. Conrad Detroit 48231 To be announced David R. Allardice1 ST. LOUIS 63166 John F. McDonnell Thomas C. Melzer Susan S. Elliott W. LeGrande Rives Little Rock 72203 To be announced Robert A. Hopkins Louisville 40232 To be announced Thomas A. Boone Memphis 38101 To be announced John P. Baumgartner MINNEAPOLIS 55480 Jean D. Kinsey Gary H. Stern David A. Koch Colleen K. Strand Helena 59601 To be announced John D. Johnson KANSAS CITY 64198 A. Drue Jennings Thomas M. Hoenig Jo Marie Dancik Richard K. Rasdall Denver 80217 To be announced Carl M. Gambs1 Oklahoma City 73125 To be announced Kelly J. Dubbert Omaha 68102 To be announced Bradley C. Cloverdyke DALLAS 75201 Roger R. Hemminghaus Robert D. McTeer, Jr. Cece Smith Helen E. Holcomb El Paso 79999 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith, III1 San Antonio 78295 To be announced James L. Stull1 SAN FRANCISCO 94120 Judith M. Runstad Robert T. Parry Gary G. Michael John F. Moore Los Angeles 90051 To be announced Mark L. Mullinix1 Portland 97208 To be announced Raymond H. Laurence1 Salt Lake City 84125 To be announced Andrea P. Wolcott Seattle 98124 To be announced 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

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 U.S. 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

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 Consumer's QuMe to Business Mortgage Credit Lock-ins for Women, Minorities, and Small Businesses SHOP The Card You Pick Can Save You Money 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