Federal Reserve Bulletin, 1997-03

VOLUME 83 • NUMBER 3 • MARCH 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 173 MONETARY POLICY REPORT TO THE sonal perspectives on the current economic situ- CONGRESS ation and says that the current cyclical upswing is now approaching six years in duration with The economy performed impressively this past the economy retaining considerable vigor and year, and members of the Board of Governors few signs of the imbalances and inflationary and Reserve Bank presidents anticipate that tensions that have disrupted past expansions, 1997 will bring further appreciable economic before the Senate Committee on the Budget, expansion with relatively low inflation. In 1996, January 21, 1997. solid advances in the real expenditures of households and businesses led to sizable gains in 198 Chairman Greenspan focuses on the accuracy of output. Employment rose briskly, and the unem- the consumer price index and says that there is ployment rate edged down to its lowest level of virtually no chance that the CPI as currently the current expansion. Consumer price inflation published understates the rate of growth of the increased owing to the likely temporary effects appropriate concept, which means that there is of firmness in food and energy markets, but almost a 100 percent probability that we are some broader price measures showed inflation overcompensating the average social security holding steady or even declining. With the econ- recipient for increases in the cost of living and omy strengthening, intermediate- and long-term that we are causing the inflation-adjusted burden interest rates rose on net, but credit continued to of the income tax system to decline more rapidly be amply available to businesses and most than the Congress intends, before the Senate households, and equity prices soared. Committee on Finance, January 30, 1997. 188 TREASURY AND FEDERAL RESERVE 202 ANNOUNCEMENTS FOREIGN EXCHANGE OPERATIONS Resignation of Janet L. Yellen as a member of During the fourth quarter of 1996, the dollar the Board of Governors. appreciated 3.9 percent against the yen and Appointments of new members to the Consumer 0.9 percent against the mark. On a trade- Advisory Council and designation of a new weighted basis against the currencies of the chairman and vice chairman. other Group of Ten countries, the dollar appreciated 0.2 percent. The U.S. monetary authorities Availability of preliminary figures on operating did not undertake any intervention operations income and expenses of the Federal Reserve during the quarter. Banks. Issuance of an interim rule on the frequency 192 INDUSTRIAL PRODUCTION AND CAPACITY cycle for examinations of certain institutions. UTILIZATION FOR JANUARY 1997 Amendment to Regulation C. Industrial production was unchanged in January, at 117.7 percent of its 1992 average, after a Proposal for regulations regarding qualifications sharp rise late last year. Capacity utilization requirements for bank employees who sell edged down 0.2 percentage point, to 83.3 per- mutual funds and certain other securities; procent, matching the average level in the last half posal to remove a majority of the prudential of 1996. limitations or firewalls that currently apply to bank holding companies engaged in securities underwriting and dealing activities through sec- 195 STATEMENTS TO THE CONGRESS tion 20 subsidiaries; proposed amendments to Alan Greenspan, Chairman, Board of Governors Regulation E; and proposed revisions to Regulaof the Federal Reserve System, offers some per- tion Z. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Availability of transcripts of meetings in 1991 of A1 FINANCIAL AND BUSINESS STATISTICS the Federal Open Market Committee. These tables reflect data available as of Availability of Community Reinvestment Act January 29, 1997. information on the Internet. Availability of revised lists of over-the-counter A3 GUIDE TO TABULAR PRESENTATION stocks and of foreign stocks subject to margin A4 Domestic Financial Statistics regulations. A42 Domestic Nonfinancial Statistics Publication of Risk Measurement and Systemic A50 International Statistics Risk: Proceedings of a Joint Central Bank Research Conference. A63 GUIDE TO STATISTICAL RELEASES AND Publication of the December 1996 update of the SPECIAL TABLES Bank Holding Company Supervision Manual. A64 INDEX TO STATISTICAL TABLES Availability of a video "It's Your Money" on saving and investing. A66 BOARD OF GOVERNORS AND STAFF Change in Board staff. 209 LEGAL DEVELOPMENTS A68 FEDERAL OPEN MARKET COMMITTEE AND Various bank holding company, bank service corporation, and bank merger orders; and pend- STAFF; ADVISORY COUNCILS ing cases. A70 FEDERAL RESERVE BOARD PUBLICATIONS 224 MEMBERSHIP OF THE BOARD OF A72 MAPS OF THE FEDERAL RESERVE SYSTEM GOVERNORS OF THE FEDERAL RESERVE SYSTEM, 1913-97 A74 FEDERAL RESERVE BANKS, BRANCHES, List of appointive and ex officio members. AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress Report submitted to the Congress on February 26, aggressive pricing behavior. Business firms contin- 1997, pursuant to the Full Employment and Balanced ued to rely on cost control and gains in productivity, Growth Act of 1978 rather than on price increases, as the primary channels for achieving profit growth. Still, the Federal Open Market Committee (FOMC) MONETARY POLICY AND THE recognized the danger that pressures emanating from ECONOMIC OUTLOOK the tight labor market might trigger an acceleration of prices, which could eventually undermine the ongo- The economy performed impressively this past year, ing economic expansion. Consequently, although and the members of the Board of Governors and the conditions last year were not deemed to warrant Reserve Bank presidents anticipate that 1997 will immediate policy action, the Committee's policy bring further appreciable economic expansion with directives starting in mid-1996 reflected a perception relatively low inflation. In 1996, solid advances in the that the most likely direction of any policy action real expenditures of households and businesses led to would be toward greater restraint in the provision sizable gains in output. Employment rose briskly, and of reserves to the banking system. Forestalling a the unemployment rate edged down to its lowest disruptive buildup of inflationary pressures in the level of the current expansion. Consumer price infla- near term and moving toward price stability over tion increased owing to the likely temporary effects time remain central to the System's mission of proof firmness in food and energy markets, but some moting maximum sustainable growth of employment broader price measures showed inflation holding and production. steady or even declining. With the economy strengthening, intermediate- and long-term interest rates rose on net, but credit continued to be amply available to Monetary Policy, Financial Markets, and the businesses and most households, and equity prices Economy in 1996 soared. Several factors helped to restrain price increases The FOMC eased the stance of monetary policy this past year in the face of high levels of resource twice around the beginning of last year—in Decemutilization. With workers still concerned to some ber 1995 and in January—lowering the federal funds degree about job security, acceleration in hourly com- rate Vi percentage point in total, to 5lA percent. pensation was not so pronounced as in comparable These actions were taken to offset the effect on the periods in the past; wage increases picked up rela- level of the real federal funds rate of declines in tively moderately, and further success in controlling inflation and inflation expectations in the second half health care costs helped to temper the rise in benefits. of 1995 and thereby to help ensure the resumption Moreover, significant declines in the prices of U.S. of moderate economic growth after the marked slowimports, owing to low inflation abroad and apprecia- down and inventory correction in late 1995. By the tion of the dollar on foreign exchange markets, spring, economic growth had become more vigorous tended to hold down domestic prices. Damped infla- than either the Committee or financial markets had tion expectations probably contributed as well to the foreseen. In response, intermediate-and longer-term favorable price performance: A lengthening run of interest rates as of mid-May were up around a full years during which inflation has been in a more percentage point from the two-year lows reached moderate range, together with an understanding of early in the year. In combination with some softening the Federal Reserve's commitment to maintaining of economic activity abroad and declines in interest progress toward price stability, may have discouraged rates in major foreign industrial countries, these developments contributed to a further appreciation of the dollar, building on the rise that had started NOTE. The charts for the report are available on request from in mid-1995. The Committee anticipated that the Publications Services, Mail Stop 127, Board of Governors of the increase in the cost of credit, along with the higher Federal Reserve System, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • March 1997 exchange value of the dollar, would be sufficient to terms with respect to credit card debt and some other foster a downshift in economic expansion to a more types of consumer debt last year, as banks reacted to sustainable pace and contain price pressures; thus, it a rising volume of delinquencies and charge-offs on left its policy stance unchanged at its spring meetings. these instruments. However, credit availability under By early summer, however, the continued momen- home equity lines increased, particularly from finance tum in demand and pressures on labor resources that companies but also from banks. Overall debt growth were being reflected in faster growth in wages were slowed slightly but remained near the midpoint of its seen as posing a threat of increased inflation. Core 3 percent to 7 percent monitoring range. The growth inflation remained moderate, but in light of the rates of M2 and M3 edged up last year and, as was heightened risk that it would turn upward, the Com- anticipated in the monetary policy reports to the mittee in its early July directive to the Manager of the Congress last February and July, both aggregates Open Market Account indicated its view that near- ended 1996 near or above the upper end of their term economic developments were more likely to growth ranges. Again last year, the growth of M2 lead to a tightening of policy than to an easing. Labor relative to nominal income and interest rates was markets continued to be taut over the balance of the generally in line with historical relationships, in conyear, and this bias toward restraint was included in trast to its behavior during the early years of the directives adopted at all of the Committee's remain- decade. ing meetings in 1996. After having peaked during mid-summer, interest rates moved down on balance through the fall, as Economic Projections for 1997 expansion of consumer spending and economic activity in general appeared to be moderating and markets With the economy free of serious imbalances, prossaw less likelihood of a need for Federal Reserve pects appear favorable for further growth of activity firming action. Equity prices fell back for a time and expansion of job opportunities in the coming during the summer, reversing some of the substantial year, although resource constraints seem likely increase registered over the first half of the year, but to keep the pace of growth below that of 1996. The by autumn they had reached new highs. Interest rates central tendency of the growth forecasts of gross and dollar exchange rates turned back up late in the domestic product put forth by the members of the year when signs of rapid growth and more intense use Board of Governors and the Reserve Bank presidents of the economy's resources re-emerged. Since year- is from 2 percent to 2XA percent, measured as the end, interest rates have changed little, on net. The change in real output between the final quarter of foreign exchange value of the dollar has posted fur- 1996 and the final quarter of 1997. Output growth of ther gains, in part reflecting greater-than-expected this magnitude is expected to result in little change in weakness in Europe and renewed pessimism about the civilian unemployment rate, which is projected to economic and financial prospects in Japan. Equity be between 5 lA percent and 5'/2 percent in the fourth prices have registered new highs since the start of the quarter of this year. These forecasts of GDP growth year. As of mid-February, intermediate- and long- and unemployment are similar to those of the Adminterm interest rates were up about Vi to 3A percentage point, on balance, since early 1996, and the value of the dollar was up around 9 percent against an average 1. Economic projections for 1997 of other Group of Ten currencies. Percent For the nonfinancial business sector, the effect of Federal Reserve governors and Reserve Bank presidents the higher intermediate- and long-term interest rates IInnddiiccaattoorr AAddmmiinniissttrraattiioonn on the overall cost of funds last year was offset to Range Central tendency some degree by an easing of lending terms at banks and a narrowing of yield spreads on corporate bonds Change, fourth quarter to fourth quarter1 over Treasuries, as well as by declines in the cost Nominal GDP 4'/4-5'/4 41/2-43/4 4.6 Real GDP2 2-2/2 2-2/4 2.0 of capital in the equity market. Encouraged, perhaps, Consumer price index3 .. 23/4-3/2 23/4-3 2.6 by the prospects of sustained economic expansion Average level, and low inflation, banks, market lenders, and equity fourth quarter Civilian unemployment investors displayed a strong appetite for business 5'/4-5'/2 5/4-5/2 5.4 obligations and seemed willing to require less com- 1. Change from average for fourth quarter of preceding year to average for pensation for the possible risks entailed. Some house- fourth quarter of year indicated. holds, by contrast, faced a tightening of standards and 2. Chain-weighted. 3. All urban consumers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 175 istration. The central tendency of the policymakers' favorable outlook for food and energy prices, some forecasts of the consumer price index for 1997 spans risk exists that core inflation could turn up during the the relatively narrow interval of 23A percent to 3 per- coming year. The minimum wage will be moving up cent, with the lower bound near the inflation forecast further in 1997, compounding whatever cost presof the Administration. sures might be in train as a result of labor market Consumer spending, which accounts for about two- tightness, and the degree to which businesses can thirds of total GDP, should be supported in coming continue to absorb stepped-up increases in labor costs quarters by further gains in income and the substan- without raising prices more rapidly is not certain. tial increase in household net worth that has occurred As noted in the July 1996 monetary policy report, over the past two years; debt problems, although the CPI forecasts of the governors and Reserve Bank rising of late, do not seem to be so widespread as to presidents incorporate allowances for the technical threaten the ongoing expansion of household expen- improvements to this index that have been made ditures in the aggregate. In the business sector, bal- by the Bureau of Labor Statistics. These technical ance sheets are strong, profits have been rising, and changes are estimated to have trimmed the reported efforts to bolster efficiency through the use of tech- rate of CPI inflation slightly in each of the past two nologically advanced equipment are continuing at an years, and additional changes will be affecting the intense pace. In the commercial real estate market, rise in the index in 1997. In view of the remaining the supply-demand balance has shifted in many difficulties of accurately measuring price change in a locales to a point at which interest in office building highly complex and rapidly changing economy, alterprojects has picked up noticeably. These conditions, native price indexes will continue to be given subtogether with the ready access to a wide variety of stantial weight, along with the CPI, in monitoring sources of finance that businesses currently are enjoy- progress toward the long-run goal of price stability. ing, should keep investment spending on an upward Some of the broad measures of inflation derived from trajectory. Foreign demand for U.S. products should the GDP accounts slowed in 1996; the Committee is continue to rise with growth of the world economy, concerned that, even if the CPI decelerates as even in the wake of the significant appreciation of the expected in 1997, other indexes—with different scope dollar since the first half of 1995; however, imports and weights—may pick up in reflection of the presalso seem likely to remain on a clear upward trend, sures on productive resources. given the prospects for continued expansion of the U.S. economy. Government expenditures for consumption and investment probably will follow recent Money and Debt Ranges for 1997 trends, with further cutbacks in real outlays at the federal level and moderate increases in the combined Again in 1997, the Committee has set ranges for M2 purchases of state and local governments. and M3 that would encompass monetary growth Although the risk of increased inflation pressures is expected to be consistent with approximate price significant, especially in view of the tightness of the stability and a sustainable rate of real economic labor market and the strength in activity that has been growth, assuming that the behavior of velocity is evident recently, Federal Reserve policymakers in line with historical norms. These ranges are expect this year's rise in the consumer price index to unchanged from those for 1996: 1 percent to 5 perbe somewhat smaller than that of 1996. The major cent for M2 and 2 percent to 6 percent for M3. reason for expecting a smaller CPI increase this year As has been the case for several years, the 1997 is a more favorable outlook for food and energy ranges for M2 and M3 were set against a backdrop of prices. Prices of farm products have dropped back uncertainty about the stability and predictability of from the highs of last summer, and, barring further their velocities. A long-run pattern of reasonably weather problems, this year's rise in food prices at retail should be considerably smaller than that of 1996. Oil prices have recently declined and seem 2. Ranges for growth of monetary and debt aggregates likely to ease further in coming months as world Percent production and consumption come back into better balance; this price relief is important not only because Aggregate 1995 1996 1997 of the direct effects on the price of gasoline and other M2 1-5 1-5 1-5 consumer energy items but also because petroleum M3 2-6 2-6 2-6 Debt 3-7 3-7 3-7 is a major element in the cost of producing and NOTE. Change from average for fourth quarter of preceding year to average distributing many other goods. By contrast to the for fourth quarter of year indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin • March 1997 stable velocity behavior broke down in the early in the face of an appreciating dollar. Tightness of 1990s when the public's holdings of monetary assets the labor market led to a moderate pickup in wage were depressed by several factors: the contraction increases in 1996. However, acceleration of prices of the thrift industry; a tightening of credit supplies was confined largely to the food and energy sectors; and deleveraging by businesses and households; prices for other consumer products decelerated, as an extremely wide spread between short- and did prices paid by businesses for capital goods and intermediate-term interest rates that heightened the materials. Economic data for early 1997 show the attractiveness of capital market instruments relative unemployment rate holding in a low range with the to bank deposits; and the expanding availability and inflation trend still subdued. growing acceptance of stock and bond mutual funds as household investments. With the waning of all but the last of these influ- Economic Developments ences, movements in velocity have become more predictable over the past couple of years. This recent The Household Sector evidence of stability, however, covers only a relatively brief period, and its durability remains uncer- After having risen less than 2 percent in 1995, tain. In these circumstances, the Committee has real personal consumption expenditures moved up opted to continue treating the ranges as benchmarks 23/4 percent in 1996. Although debt problems arose for the trends of money growth consistent with price with greater frequency this past year, households stability rather than as short-run targets for policy. benefited from healthy increases in real income and Meanwhile, the actual behavior of the monetary another year of sizable gains in wealth. Consumers measures will be monitored for such information were relatively optimistic about prospects for the as it may convey about underlying economic economy at the start of 1996, and they became more developments. so as the year progressed. The central tendency of the Committee's expecta- Real outlays for consumer durables rose more than tions for nominal GDP growth in 1997 is slightly 5 percent in 1996 after a gain of only 1V4 percent below that registered in 1996. Thus, if velocity during 1995. As has been true for many years, real behaves as it did last year, M2 and M3 might deceler- expenditures on computers and electronic equipment ate a bit but even so would again expand around the outpaced the growth of other household outlays by a upper ends of their growth ranges. Debt of the non- wide margin in 1996. Sizable increases were also financial sectors is anticipated to increase this year at reported for most other types of consumer durables. around the pace of last year, remaining near the However, real expenditures on vehicles changed little midpoint of its unchanged 3 to 7 percent range. on net over the year, as gains achieved during the first half were reversed after midyear. Late in 1996, sales of light vehicles may have been constrained to some ECONOMIC AND FINANCIAL DEVELOPMENTS degree by supply shortages that arose during strikes IN 1996 AND EARLY 1997 in the United States and Canada; early in 1997, vehicle sales strengthened. Consumer purchases of The economy turned in a remarkably favorable nondurables rose P/4 percent in 1996 after having performance this past year. Preliminary estimates increased 1 percent during 1995. Spending for serindicate that real GDP rose more than 3 percent over vices rose 2Vz percent last year, about the same as the the four quarters of 1996, one of the larger gains average gain in previous years of the expansion. of the past several years and appreciably more than After-tax personal income increased 5 percent in the FOMC was expecting a year ago. Although nominal terms over the four quarters of last year. intermediate- and long-term interest rates moved up, Wages and salaries rose briskly, and the income of credit remained readily available to most borrowers, farm proprietors surged. Other types of income generand equity prices rose substantially. Expansion of the ally exhibited moderate gains. Given the low level of debt of nonfinancial sectors continued at about the price inflation, the rise in nominal income translated 5 percent rate it has maintained over the past several into another significant advance in real disposable years, and growth of the stock of money picked up income—about 2% percent over the year. a little to its most rapid pace this decade. These As in 1995, strong cross-currents continued to financial developments provided support for strong shape individual households' willingness—and advances in the real expenditures of households and ability—to spend from current income. Huge businesses, and the growth of exports held up well increases in stock market wealth provided some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 8 households the wherewithal to boost spending at a The Business Sector pace considerably faster than the growth of disposable income. But a number of households were likely Business fixed investment recorded a fifth consecuheld back by the need to divert income to the servic- tive year of strong expansion in 1996, rising about ing of debt, and according to some survey evidence, 9 percent according to the initial estimate. As in other households have become more concerned about sav- recent years, investment was driven by rising profits, ing for retirement. Responding to these influences, favorable trends in the cost of capital, and the ongothe annual average of the personal saving rate was up ing efforts of businesses to boost efficiency. Although slightly from that of 1995; however, it remained much of the investment spending was to replace relatively low compared with its longer-run average. depreciated equipment, the net addition to the aggre- Residential investment expenditures posted a gain gate capital stock appears to have been substantial. of 4 percent in real terms over the four quarters of The rate of rise in the stock has picked up over the 1996, more than reversing a small decline in the past two or three years after subpar growth through previous year. Demand for single-family housing was the latter half of the 1980s and first few years of the especially strong. Although interest rates on longer- 1990s; the resulting rise in the level of capital per term fixed-rate mortgage loans moved up consider- worker should enhance labor productivity and potenably in 1996, a substantial number of homebuyers tial output. sidestepped at least the initial costs by using Equipment outlays moved up almost 9Vi percent in adjustable-rate loans that were available at lower real terms in 1996. Business purchases of office and rates. The effects of the rate increases on the single- computing equipment once again rose much faster family market were cushioned by other influences as than the outlays for other types of equipment. Comwell, most notably the growth of employment and puter purchases were propelled by many of the same income. Even for fixed-rate loans, mortgage financ- forces that have been at work in other recent years— ing costs held at a level that, by historical standards, most particularly, the expansion of networks and the was low relative to household incomes. All told, sales availability of new models of computers embodying of new homes surged to the highest annual total of substantially improved computing power at highly the current expansion, and sales of existing homes attractive prices. Outlays for communications equipestablished a historical high. New construction of ment also rose quite rapidly in 1996. Gains for other single-family dwellings also rose but not so dramati- types of equipment were generally more modest. cally as sales, as builders apparently chose to work Investment in nonresidential structures also rose off some of their inventories of unsold units, which substantially over the four quarters of 1996, posting had climbed in 1995. Mild sluggishness in starts the largest advance in several years. Business spendtoward the end of 1996—which was probably exacer- ing on structures went through an extended contracbated by poor weather in December—was followed tion in the latter part of the 1980s and early 1990s, by more upbeat indicators of new construction in and until recently the subsequent recovery has been January of this year. relatively slow. That the 1996 gain in nonresidential Construction of multifamily units maintained a investment would be so large was not evident until path of recovery from the extreme lows of the early late in the year, when incoming data began to trace 1990s, moving up about 13 percent in terms of annual out sizable increases in new construction for many totals. The number of multifamily units started— types of buildings. Investment in office buildings about 315,000—was double the number started in scored an especially large gain over the year, amid 1993, when construction of these units was at a low. widespread reports of firming market conditions and However, compared with previous peaks, the 1996 reduced vacancy rates, and real outlays for other total was less impressive—starts were twice as high commercial structures moved up for a fifth consecuin some years of the 1970s and 1980s. Although tive year. Financing appears to be in ample supply for market conditions for multifamily properties varied commercial construction, and according to reports considerably from city to city in 1996, the national from the District Reserve Banks, speculative office average vacancy rate for multifamily rental units building projects—that is, those without preremained relatively high, and demographic influences committed tenants—are becoming more common. were probably less supportive of multifamily housing Inventory investment was relatively subdued in than they were a decade or so ago. Also, manufac- 1996. The stock of nonfarm business inventories rose tured houses have provided an increased number of less than 2 percent over the four quarters of the year, families with an alternative to rental apartments in the smallest increase since 1992. Businesses had been recent years. moving toward a reduced rate of stockpiling over Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin • March 1997 much of 1995, and the rate of accumulation came the most recent fiscal year were the smallest since almost to a halt in early 1996, when stocks of motor 1979. Legislative restraint has led to cuts in a number vehicles plummeted in conjunction with a strike at of discretionary programs in recent years, and the two plants that manufacture auto parts. Thereafter, expanding economy has relieved pressure on those inventory developments were relatively uneventful. outlays that tend to vary inversely with the strength Stocks of vehicles changed little on net over the of activity. final three quarters of the year, and accumulation of Federal receipts increased about IV2 percent in inventories by other nonfarm businesses was moder- fiscal 1996, the third year in which growth of receipts ate on average. Stocks at year-end generally appeared outpaced growth of nominal GDP by a significant to be at comfortable levels relative to recent trends in margin. Receipts from individual income taxes sales. climbed more than 11 percent in the most recent Business profits turned in another strong perfor- fiscal year, in conjunction with healthy increases in mance in 1996. Economic profits of all U.S. corpora- households' taxable earnings from capital and labor. tions rose at an annual rate of more than 10 percent Taxes on corporate profits also continued to rise from the final quarter of 1995 to the third quarter of rapidly, more or less in step with the growth of 1996. Profits earned by foreign subsidiaries of U.S. business earnings. The rapid growth of receipts, corporations fluctuated from quarter to quarter but coupled with the restrained growth of expenditures, remained at high levels, and returns from domestic brought the unified budget deficit down to $107 biloperations rose substantially, for both financial and lion in fiscal 1996 from almost $165 billion in fiscal nonfinancial firms. Domestic profits of nonfinancial 1995. The deficit as a share of nominal GDP was corporations amounted to 10.7 percent of the nominal 1.4 percent, the smallest in more than twenty years. value of these firms' output in the third quarter, the The aggregate consumption and investment expenhighest reading of the current expansion. ditures of state and local governments rose 2 lA percent in real terms over 1996. This gain was about the same as those of the two previous years. Outlays for The Government Sector services, which consist mainly of employee compensation and account for more than two-thirds of all Real federal expenditures on consumption and gross state and local purchases, rose roughly 1 lA percent in investment—the part of federal spending that is real terms last year. Investment expenditures, which included in GDP—rose about 2x/i percent, on net, make up the next biggest portion of state and local from the fourth quarter of 1995 to the fourth quarter purchases, rose about 4Vi percent in real terms. In the of 1996, but the rise was mostly an artifact of late- aggregate, the budget picture for state and local gov- 1995 real purchases having been pushed to especially ernments was relatively stable in 1996, as the surplus low levels by government shutdowns. The under- of nominal receipts over nominal current expendilying trend of federal consumption and investment tures changed little from the positive readings of expenditures probably is better represented by the other recent years. 2Vi percent annual rate of decline from the fourth quarter of 1994 to the final quarter of 1996. Reductions have been apparent over the past two years both The External Sector in real defense purchases and in real nondefense purchases. The nominal trade deficit for goods and services Federal expenditures in the unified budget widened to $115 billion in 1996 from $105 billion the increased about 3 percent in nominal terms in fiscal previous year. For the first three quarters of the year, 1996 after having increased 33/4 percent in fiscal the current account deficit totaled $165 billion at an 1995. Slower growth was recorded across many bud- annual rate, somewhat greater than the $150 billion getary categories this past year, and outright declines deficit recorded in 1995. were reported in some. Combined expenditures on The quantity of imports of goods and services rose health, social insurance, and income security—items strongly over the four quarters of 1996—about that account for more than half of all federal 8V2 percent according to the preliminary estimate— outlays—moved up AVi percent, the smallest increase after having expanded only 4 XA percent the previous this decade. Defense spending was down about year. The pickup in U.S. real output growth boosted 214 percent in nominal terms, and net interest outlays the demand for imported goods, as did the declines in rose much less rapidly than in fiscal 1995. Measured the prices of non-oil imports. Sizable increases in relative to the size of nominal GDP, total outlays in import volume were widespread among most major Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 179 merchandise trade categories, with the notable excep- Chile, real GDP growth moderated from the very tions of oil and semiconductors. high rate recorded in 1995 to about 6 percent in 1996. Very strong export growth in the fourth quarter of In Venezuela, windfall oil revenues softened the 1996 raised the yearly gain in the quantity of exports decline in real GDP in 1996 and improved the prosof goods and services to IV2 percent. Growth in the pects for 1997. economies of our major trading partners was only In our major trading partners in Asia other than moderate on average but was somewhat faster than Japan, real output growth generally slowed from its in 1995. As a consequence, growth of exports was 1995 pace, despite a pickup in many countries toward similar to the 1995 rate despite the appreciation of the year-end in response to more accommodative monedollar. Over the past year, most of the rise in the tary policies and a partial recovery in export markets. value of merchandise exports went to Canada and In China, the slowdown of growth to about 10 per- Latin America. Exports to Western Europe and Asia cent last year from the 12 percent to 14 percent were only marginally higher than they were a year annual rates experienced during 1992-94 reflected a earlier. substantial deceleration in investment spending, ow- In most of the major industrial countries abroad, ing to China's efforts to reduce inflation by tightening real economic activity accelerated last year from a central bank credit to state-owned enterprises and by relatively weak performance in 1995. In the United restricting investment. Kingdom, real output growth firmed through the year, Consumer price inflation in Mexico was about as growth in consumption spending rebounded from 28 percent in 1996, significantly lower than the 1995 its low 1995 rate. In Germany and France, real GDP inflation rate of more than 50 percent. Venezuela's growth strengthened but was still too low to prevent inflation rate in 1996 exceeded 100 percent, but inflaa further rise in the unemployment rate in both coun- tion in most other Latin American countries was at tries. In Italy, output growth slowed as the rebound levels well under 10 percent. Inflation rates generally in the lira from its previous depreciation sharply remained low in Asia. reduced the growth of exports and depressed investment spending. For most continental European countries, further fiscal restraint is planned this year as The Labor Market governments hoping to participate in the third stage of European Monetary Union strive to meet the The number of jobs on nonfarm payrolls rose more Maastricht Treaty's 1997 reference standard of a than 2Vi million from December 1995 to December budget deficit no larger than 3 percent of GDP. In 1996, an increase of about 2lA percent. Employment Japan, fiscal stimulus spurred economic expansion gains were substantial in each quarter last year, and early last year; subsequently, slower private con- the labor market report for January of this year sumption, reduced inventory accumulation, and showed a further sizable expansion of payrolls. decreased government investment spending reduced Employment in the private service-producing secoutput growth. In contrast, Canada's real output tor, in which nearly two-thirds of all nonfarm workgrowth rose over 1996 as inventory adjustment was ers are employed, increased about 3 percent during completed during the first half of the year and as 1996. Moderate employment gains were posted in exports strengthened. retail trade, transportation, and finance, and sizable Except in the United Kingdom, inflation pressures gains in hiring continued in some other servicein the foreign industrial countries continued to producing industries, such as data processing, comdecline or remained subdued during 1996. Consumer puter services, and engineering and management. Job prices in Japan were flat. Consumer price inflation growth at suppliers of personnel—a category that fell sharply in Italy and remained below 2 percent in includes temporary help agencies—was about Germany and France. In the United Kingdom, con- 6V2 percent, a touch faster than in 1995 but much sumer prices excluding mortgage interest payments slower than it had been over 1992-94; with the accelerated to an annual rate of more than 3 percent. tightening of labor markets in the past couple of The Mexican economy continued on a course of years, longer-lasting commitments in hiring may recovery that returned GDP to its pre-crisis level have come back into greater favor among some in the fourth quarter of 1996. Increases in income and employers. a strengthening of the price-adjusted value of the Employment changes among producers of goods peso contributed to a reduction in the Mexican mer- were mixed in 1996. In construction, employment chandise trade surplus over 1996. Argentina and climbed about 5V2 percent, to a new high that was Brazil also continued to recover from recessions. In almost 4 percent above the peak of the last business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • March 1997 expansion. In manufacturing, increases in factory index (ECI) for the private nonfarm sector of the jobs through the latter part of 1996 were not suffi- economy showed compensation per hour moving cient to reverse declines that had taken place earlier up 3.1 percent over the year. The index had risen in the year. On net, last year's loss of factory jobs 2.6 percent in 1995. The step-up in hourly pay amounted to about V2 percent, a shade less than the increases was to some extent the result of a hike in average rate of decline since 1979, the year in which the minimum wage that took place at the start of manufacturing employment peaked. Manufacturers October. More generally, however, businesses probof durable goods boosted employment slightly last ably had to boost hourly compensation either to year, but many producers of nondurables imple- attract workers or to retain them at a time when mented further job cuts. As in many other recent alternative employment opportunities were perceived years, reductions in factory employment were accom- to be more widely available. panied by strong gains in worker productivity. Conse- As in 1995, increases in hourly compensation in quently, increases in output were sizable—the rise in 1996 came more as wage and salary increases than as the Federal Reserve's index of manufacturing pro- increases in fringe benefits. According to the ECI, the duction cumulated to 4 lA percent over the year. rise in wage rates for workers in the nonfarm sector Growth of output per hour in the nonfarm business amounted to nearly 3V2 percent this past year after sector as a whole picked up in 1996, rising about a rise of 23A percent in 1995. By contrast, the ECI VA percent over the year according to preliminary measure of the hourly cost of benefits rose only data. However, coming after a three-year period in 2 percent, slightly less than it did in 1995 and much which output per hour changed little, this rise left the less than it rose on average over the past decade. average rate of productivity growth in the 1990s a bit Increases in the cost of benefits have been held down below that of the 1980s and well below the average in recent years by reduced inflation for medical sergains achieved in the first three decades after World vices and by the actions that many firms have taken War II. The sustained sluggishness in measured pro- to shift employees into managed care arrangements ductivity growth this decade is difficult to explain, as and to require them to assume a greater portion of the it has occurred during a period when high levels of cost of health insurance and other medical benefits. investment in new capital and extensive restructuring of business operations should have been boosting the efficiency of workers. Of course, measurement prob- Prices lems could be distorting the data. As a summary measure that relates aggregate output to aggregate The consumer price index rose more rapidly than in input of labor, the nonfarm productivity index is 1995, but the step-up was concentrated in the food affected by whatever deficiencies might be present and energy sectors—areas in which prices were either in adding up the nominal expenditures for affected by supply limitations that seemed likely to goods and services in the economy or adjusting those be of temporary duration. The CPI excluding food expenditures for price change. A considerable amount and energy—often called the "core" CPI—rose just of recent research suggests that growth of output and a touch more than 2Vi percent after having increased productivity is in fact understated, but whether the 3 percent during 1995. Both the total CPI and the degree of understatement has been increasing over core CPI have been affected in the past two years by time is less clear. technical improvements implemented by the Bureau In contrast to the experience of most other recent of Labor Statistics that are aimed at obtaining more years, this past year's rise in employment was accurate readings of price change; the rise in the CPI accompanied by a sustained pickup in the labor force in 1996 would have been somewhat greater if proceparticipation rate. The rise in participation boosted dures used through 1994 had not been altered. the labor supply and helped to relieve pressures on Other price indexes generally rose less rapidly than the labor market. Nonetheless, hiring during 1996 the CPI. Like the overall CPI, the chain-type price was sufficient to reduce the civilian unemployment index for personal consumption expenditures (PCE) rate from a December 1995 rate of 5.6 percent to a accelerated somewhat in 1996, but its rate of rise, December 1996 rate of 5.3 percent. In January of this shown in the accompanying table, was significantly year, the rate remained low, at 5.4 percent. lower than that of the CPI. The two measures of Tightness of the labor market appears to have consumer prices differ to some degree in their exerted some upward pressure on the cost of labor weights and methods of aggregation. They also differ in 1996, even as some workers continued to express somewhat in their selection of price data, with the anxiety about job security. The employment cost PCE measure relying on alternative data in some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 181 areas in which the accuracy of the CPI has been 3. Alternative measures of price change questioned. The chain type price index for gross Percent domestic purchases, which takes account of the prices Price measure 1995 1996 paid by businesses and governments as well as those paid by consumers, moved up 2lA percent during Fixed-weight Consumer price index 2.7 3.2 1996, about the same as the percentage rise during Excluding food and energy 3.0 2.6 1995. By contrast, price measures associated with Chain-type Personal consumption expenditures ... 2.1 2.5 GDP decelerated in 1996 to thirty-year lows of Excluding food and energy 2.3 2.0 around 2 percent or less. Conceptually, the GDP Gross domestic purchases 2.3 2.2 Gross domestic product 2.5 2.1 measures are indicative of price changes for goods Deflator and services that are produced domestically rather Gross domestic product 2.5 1.8 than price changes for goods and services purchased NOTE. Changes are based on quarterly averages and are measured to the domestically—foreign trade accounting for the fourth quarter of the year indicated from the fourth quarter of the previous year. difference. The 1996 outcomes for all these measures reflected an economy in which inflation pressures were muted. The energy sector was the other major part of the Sharp declines in non-oil import prices during the economy in which significant inflation pressures were year lowered input costs for many domestic firms and evident this past year. Crude oil prices, which had likely caused other firms to restrain their product started firming in the latter part of 1995, continued on prices for fear of losing market share to foreign an upward course through much of 1996, rising more competitors. Also important, in all likelihood, were than 30 percent in total. Stocks of crude oil and the favorable imprints that several years of moderate petroleum products were tight during the year, even and relatively stable rates of inflation have left on after allowing for an apparent downward trend in inflation expectations. Despite the uptick in hourly firms' desired inventories. Inventory building was compensation and adverse developments in the food forestalled by production disruptions at refineries, a and energy sectors, survey data showed little change string of weather problems here and abroad that in consumers' expectations of inflation, and private boosted fuel requirements for heating or cooling, and forecasters' views of the prospects for prices held a reluctance of firms to take on inventories that steady. Businesses commonly described the situation seemed likely to fall in value once renewed supplies as one in which competitive pressures were intense from Iraq became available. Natural gas, too, was in and the "leverage" for raising prices simply was not tight supply at times, and its price surged. With retail present. prices of gasoline, fuel oil, and natural gas all moving Food and energy prices were the exceptions. In the up substantially, the CPI for energy rose about food sector, steep increases in grain prices in 1995 IV2 percent over the four quarters of 1996, the largest and the first few months of 1996 caused production increase since the Gulf War. adjustments among livestock farmers and substantial The CPI for goods other than food and energy rose price increases for some livestock products. Later in 1 percent during 1996, one of the smallest increases the year, grain prices fell back, but livestock produc- of recent decades. As in 1995, price increases for new tion could not recover in time to prevent significant vehicles were moderate last year, and prices of used price advances for some retail foods. Consumer cars turned down after several years of sizable prices for pork, poultry, and dairy products registered advances. Prices of apparel and house furnishings their largest increases in several years. Retail beef also fell; these prices, as well as the prices of vehiprices also rose but only moderately: Expansion of cles, may have been heavily affected by the softness the cattle herd in previous years had laid the ground- of import prices. Moderate increases were the rule work for a high flow of product to consumers, and among most other categories of goods in the CPI. In herd reductions that occurred in 1996 augmented that the producer price index, prices of capital equipment flow. Elsewhere in the food sector, acceleration was rose less than V2 percent over 1996; computer prices reported in the price index for food away from continued to plunge, and the prices of other types of home—a category that has a weight of almost 40 per- equipment rose moderately, on balance. Materials cent in the CPI for food; the rise in the minimum prices were weak: Prices of intermediate materials wage appears to have been an important factor in the excluding food and energy declined about VA peracceleration. All told, the 1996 rise in CPI food cent from the fourth quarter of 1995 to the final prices amounted to 4 lA percent, the largest increase quarter of 1996, and the producer price index for since 1990. crude materials excluding food and energy dropped Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 1997 more than 6V2 percent over that period. Productive higher-risk customers or on terms entailing unusually capacity was adequate among domestic producers high loan-to-value ratios, or both. The push to expand of materials, and supplies of many materials were home equity lending last year offset to some degree readily available at competitive prices on the world the effect of tighter lending standards and terms on market. credit cards and other forms of consumer credit. The CPI for non-energy services increased 3 lA per- The shift toward home equity loans, along with a cent in 1996. The rise was somewhat smaller than the strong housing market, led to a pickup in mortgage increases of most other recent years. Prices of medi- debt growth last year to a rate of IV2 percent, the cal services decelerated for a sixth consecutive year, largest advance since 1990. Mortgage borrowing for and increases in the cost of shelter were held down home purchases was restrained surprisingly little by by another year of moderate advances in residential the increase in interest rates over the first half of the rent and owners' equivalent rent. Large increases year. As noted previously, many borrowers were able were evident only in scattered categories: Airfares to put off, at least for a time, much of the impact of posted a large increase, and educational costs, main- the increase in rates by shifting to adjustable-rate taining a long-established trend, continued to rise mortgages, the rates on which rose much less last quite rapidly relative to prices in general. year than those on fixed-rate mortgages. Although the growth of household sector debt fell off a bit from the pace of recent years, it still Financial Developments exceeded that of disposable income. With loan rates up on average for mortgages and down only a little Debt on consumer loans, debt-service burdens continued to rise last year, and some households experienced diffi- Growth of the debt of nonfinancial sectors slowed culties servicing certain kinds of debt. Delinquency slightly last year, to 5lA percent. The growth of rates on banks' consumer loans, particularly credit household sector debt dropped from SlA percent to card loans, posted a second year of considerable IV2 percent, a deceleration accounted for entirely by increase, although they remained below levels in a sharp slowing of consumer credit. The expansion the early 1990s. At finance companies that are subsidof business borrowing was held below its 1995 pace iaries of automakers, auto loan delinquency rates rose by an increase in internally generated funds, but to very high levels; but this rise apparently resulted in at 5 lA percent, it was faster than in any other year large part from a business strategy to compete in the since 1989. Its strength reflected robust spending, vehicle market by easing lending standards. Auto extremely favorable credit conditions, and financing loan delinquency rates at commercial banks also rose needs associated with a high level of mergers but remained well within historical ranges. Delinand acquisitions. Federal government debt grew quency rates on residential mortgages remained low. 33A percent, the lowest rate in more than two decades. In the segment of the finance company market The debt outstanding of the state and local sectors that deals in subprime auto loans, some problems was unchanged. emerged last month. A small firm in this market defaulted on its commercial paper after it restated The Household Sector. Consumer credit grew earlier earnings at lower levels, and another firm filed 8V4 percent last year, just a bit over half the pace of for bankruptcy. Although the share prices of these the preceding two years. The sharp retrenchment and other firms primarily engaged in sub-prime lendlikely reflected the burdens associated with a substan- ing declined along with their earnings outlook, this tial accumulation of outstanding consumer debt over sector constitutes a very small part of the overall auto recent years as well as some tightening of lending loan market, and the implications for the availability terms and standards by commercial banks, particu- of credit to the household sector overall appear slight. larly with respect to credit cards. Charge-off rates on consumer loans rose at banks The slowing in consumer credit growth also was in 1996 to around the peak levels of the last recession associated with a shift toward increased use of home in 1990-91. According to Federal Reserve surveys of equity loans. These loans were marketed vigorously, senior loan officers, banks had anticipated some deteparticularly by finance companies, in part as a vehicle rioration in the quality of their consumer loan portfor consolidating credit card and other outstanding folios last year, but they were surprised by its extent. consumer debt. Some of the growth in home equity These surveys also showed that banks considered the loans reflected moves by finance companies and rate of charge-offs last year to be high relative to the banks into the "subprime" market—lending either to level of delinquencies and that the credit-scoring Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 183 models most banks use to evaluate consumer lending favorable than at any time in the current economic decisions have tended to be too optimistic. An impor- expansion. tant reason for the high level of charge-offs and the On a gross basis, a pickup in bond issuance by apparent shortcomings of the credit-scoring models nonfinancial firms last year was accounted for mainly was a 30 percent increase in personal bankruptcies. by speculative-grade offerings, likely in part a reac- This surge stemmed in part from changes in the tion to the improved pricing. In the fourth quarter, bankruptcy code that became effective at the begin- however, investment-grade issuance was substantial, ning of last year against a backdrop of an apparently responding to the decline in interest rates that began reduced stigma associated with this method of deal- in late summer. Commercial paper declined in the ing with financial problems. Banks responded to the final months of the year, primarily because of paydeterioration in their consumer loan portfolios by downs from bond proceeds, but bank lending to tightening standards and terms, especially on credit businesses was strong, owing in some part to robust cards. In contrast, banks eased terms and conditions merger activity. Despite a marked increase in gross on home equity loans. stock issuance—with strong gains both for initial Despite the rise in delinquencies on consumer public offerings and for seasoned offerings—equity debt, household balance sheets appear healthy over- continued to be retired on net last year, as merger all, as growth of household assets over the past two activity remained brisk and businesses used ample years has more than kept pace with the growth of cash resources to repurchase their outstanding shares. debt. Although year-end balance sheet figures are not yet complete, the net worth of households appears The Government Sector. The growth of federal to have risen approximately $5 trillion from the debt was held down in 1996 by legislative constraints end of 1994 to the end of 1996, an amount that is on spending and by the boost to tax receipts from equal to almost a full year's personal disposable both the stronger economy and a booming stock income. Roughly two-thirds of that gain has been market. Two years of contraction of state and local accounted for by the surge in the prices of corpor- government debt ended last year. The declines had ate shares, which has lifted the value of a wide range occurred as issues that were pre-refunded earlier in of household investments, not only directly held the decade, when interest rates were unusually favorstocks but also assets held in other forms such as able, matured or became eligible to be called. Prepension plans. The ratio of household net worth to refunded debt continued to be called last year, albeit personal disposable income continued to climb this at a reduced pace, but this decline was just offset by past year, moving to its highest level in recent gross issuance, which picked up. decades. Depository Intermediation. The expansion of The Business Sector. Although many interest depository credit slowed last year, entirely reflecting rates rose last year, businesses continued to find a slower advance in bank credit. Growth at thrift credit readily available and at favorable terms. This institutions picked up, benefiting from strong demand accommodation likely resulted in part from the strong for residential mortgages and improved capital posifinancial condition of this sector, reflected in minimal tions. Growth of commercial bank loans moderated, delinquency rates on bank loans to businesses and as loans to businesses and, especially, consumers very low default rates on corporate bonds, including decelerated from elevated rates of growth in 1995. those of low-rated issuers. With securitization of Bank portfolio expansion also appears to have been household debt instruments proceeding apace and damped somewhat by a faster pace of asset securitizawith high levels of capital, banks appeared to have tion, likely spurred by receptive capital markets. For ample room on their balance sheets for business example, real estate loan growth at banks was a loans. This situation encouraged the development of subdued 4 percent last year, despite a robust housing a highly competitive lending environment in which market and a pickup in commercial real estate. At the banks further eased a variety of credit terms, such as same time, outstanding securities backed by mortcovenants and markups over base rates. In capital gage pools expanded at a $179 billion annual rate in markets, interest rate spreads of private debt instru- the first three quarters of last year, well above the ments over Treasuries narrowed, particularly in the pace of 1995. Commercial banks are a major source case of high-yield bonds. Surveys by the National of securitized mortgages. The outstanding amount of Federation of Independent Business revealed a rising consumer credit that had been securitized by banks tendency of small businesses to borrow over 1996, also rose at a brisk pace last year, although not so with credit availability reported to be in a range more rapidly as in 1995. As a result of the slowing of bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 1997 credit, the share of last year's advance in nonfederal upper end of its 2 percent to 6 percent annual range. debt that ended up on the books of depositories fell to M2 grew 4l/z percent, up Vi percentage point and in about 38 percent, down from around 44 percent in the the upper portion of its 1 percent to 5 percent range. preceding two years. As noted above, the ranges for monetary growth last The balance sheets and operating results of deposi- year had been chosen to be consistent with approxitories remained strong in 1996. Bank profits through mate price stability and a sustainable rate of real the third quarter were at historically high levels for economic growth, rather than as indicators of the the fourth consecutive year, reflecting the main- range of money growth rates likely to prevail under tenance of relatively wide interest rate margins, fur- expected economic conditions. ther loan growth, and substantial fee income related The acceleration of M3 was caused partly by a to sales of mutual funds as well as to securitization shift in the way banks financed their credit— and other off-balance-sheet activities. As of the third specifically, substituting issuance of large time deposquarter, almost 99 percent of commercial bank assets its for borrowings from offices abroad. Both foreign were held at banks classified as "well capitalized." and domestically chartered banks paid down net bor- Underlying thrift profits were also stronger last year. rowing from foreign head offices and branches last However, profits at thrift institutions and at banks year. For domestic banks, this paydown may have with deposits insured by the Savings Association been related to the reduction to zero of insurance Insurance Fund (SAIF) were held down temporarily assessments on deposits, beginning with the last quarby a special assessment on deposits to recapitalize ter of 1995. In addition, the greater growth of M3 SAIF. (Some bank deposits are SAIF-insured because relative to that of M2 reflected the need to fund of mergers with thrift institutions or acquisitions of particularly strong loan growth at U.S. branches and them.) agencies of foreign banks, which do not offer the retail accounts that dominate deposits in M2. Growth of both M2 and M3 was supported again The Monetary Aggregates last year by continuing robust advances in money market mutual funds (MMMFs). Because the yields Despite the slowing of depository credit, growth of on these funds are based on the average return earned the broader monetary aggregates strengthened last on their assets, they lag changes in yields on new year: M3 expanded 7 percent, up 1 percentage point market instruments; thus, the funds tend to attract from 1995 and also 1 percentage point above the additional inflows when market rates are falling. 4. Growth of money and debt Percent Period Ml M2 M3 Domestic nonfinancial debt Annual1 1980 7.5 8.7 9.6 9.5 1981 5.4 (2.5)2 9.0 12.4 10.2 1982 8.8 8.8 9.7 9.9 1983 10.3 11.8 9.5 11.9 1984 5.4 8.1 10.8 14.5 1985 12.0 8.6 7.7 14.2 1986 15.5 9.1 9.0 13.2 1987 6.3 4.2 5.8 10.0 1988 4.3 5.7 6.3 9.0 1989 .5 5.2 4.0 7.9 1990 4.1 4.1 1.8 6.9 1991 7.9 3.1 1.2 4.6 1992 14.4 1.8 .6 4.7 1993 10.6 1.3 1.1 5.1 1994 2.5 .6 1.7 5.2 1995 -1.6 4.0 6.2 5.5 1996 -4.6 4.6 6.9 5.3 Quarterly (annual rate)* 1996:1 -3.5 5.3 6.6 5.0 2 -1.4 4.5 6.3 5.7 3 -6.5 3.4 5.4 5.3 4 -7.4 5.0 8.5 4.9 1. From average for fourth quarter of preceding year to average for fourth 2. Adjusted for shifts to NOW accounts in 1981. quarter of year indicated. 3. From average for preceding quarter to average for quarter indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 185 Accordingly, MMMFs advanced most rapidly in the deposits contributed to a contraction of almost 12 perearly part of last year, when the monetary easings of cent in required reserves—twice the rate of decline of December and January pulled down short-term rates, the previous year. The monetary base decelerated and also later in the year, when short-term rates only a little, however, as growth of its major compowere again declining. However, these instruments nent, currency, was little changed between 1995 and expanded briskly even in the third quarter, when 1996. short-term rates were rising, suggesting that part of Continued declines in the levels of required the attractiveness of MMMFs is the convenience they reserves have the potential to impinge on the Federal offer those investors engaged in moving funds in and Reserve's ability to exert close day-to-day control out of stock and bond mutual funds, which expanded over the federal funds rate—the overnight rate on at a record pace last year. In addition, institution-only reserves traded among depository institutions. funds seem to be having considerable success in Depositories hold balances at Reserve Banks to meet marketing cash management programs that capture daily clearing needs in addition to satisfying statutory excess cash of corporations and municipalities. reserve requirements. At low enough levels, reserve Likely reflecting the attractiveness of money market balances may provide inadequate protection against and capital market mutual funds last year, deposits in adverse clearings, and banks' attempts to avoid over- M2 actually showed little growth in 1996. Retail drafts could generate highly variable daily demands deposit growth also may have been damped by a lack for balances at the Federal Reserve and a volatile of aggressive pricing of deposits on the part of banks, federal funds rate. To date, however, no serious probas demand for their loans slipped and they apparently lems have emerged, in part because the substantial found it cheaper to finance a larger share of loan drop in depositories' required reserve balances attriboriginations through securitizations and large time utable to sweeps has been partially offset by increases deposits. in their holdings of required clearing balances—an The behavior of M2 relative to income last year, arrangement whereby depositories pay for services as summarized by its income velocity, again bore a provided by the Federal Reserve through the holding fairly systematic relationship to M2's opportunity of specified amounts in reserve account balances. In cost—the return on M2 assets relative to yields avail- addition, advances in banks' techniques of monitorable on alternative instruments. The relationship of ing balances at the Federal Reserve and gauging their velocity to opportunity costs was reasonably stable clearing needs have enabled them to operate historically, but it broke down in the early 1990s, efficiently and smoothly at relatively low levels of a period characterized by extensive restructuring of balances. Sweeps have had an effect on Federal balance sheets by households, businesses, and banks. Reserve earnings and the amounts it remits to the In the process, M2 velocity rose substantially and, Treasury. The decline in reserve balances of about apparently, permanently. Since 1993, velocity no $12 billion owing to sweeps must be matched by an longer appears to be shifting higher, and M2 velocity accompanying lower level of Treasury securities on and opportunity costs are moving together about as the books of Reserve Banks. The Federal Reserve they did before 1990. However, the recent period of continues to monitor sweep activity closely. relative stability in this relationship has been too short for the Federal Reserve to place increased reliance on M2 as a guide to policy at this time. Interest Rates, Equity Prices, Ml contracted 4Vi percent last year, as the pace at and Exchange Rates which new arrangements were established to sweep reservable retail transactions deposits to nonreserv- Interest Rates. Declines in interest rates during able nontransaction accounts accelerated. The initial the second half of last year on evidence that ecoamounts removed from transaction accounts by nomic growth had moderated only partially reversed sweep arrangements established last year amounted the increases over the first half. Reflecting the surpristo $116 billion, compared with $45 billion in 1995. ing strength in economic activity last year, longer- Ml continued to be supported by currency growth term Treasury rates rose on balance on the order of last year, when foreign demands, which were Vi percentage point over the year, and intermediate depressed earlier in the year partly in anticipation of rates were up somewhat more. Spreads between most the new $100 bill, picked up in the second half. private rates and Treasuries narrowed markedly last Adjusted for the initial amounts removed from trans- year, reflecting the high quality of business balance action accounts by sweep arrangements, Ml grew sheets. Municipal rates moved up comparatively little 5lA percent last year. The sweeping of transaction over the first half of 1996, as earlier relative increases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 1997 in these yields associated with discussions of funda- nomic data have suggested additional strength in the mental tax reform were reversed when the likelihood U.S. economy and have raised questions about the of such changes to the tax code diminished. Move- vigor of economic expansions in several foreign ments in interest rates over the year appeared to be industrial countries. basically in their real component, as inflation expecta- On average, yields on ten-year government securitions were little changed, according to surveys. ties in the major foreign industrial countries fell about 80 basis points last year, with most of the Equity Prices. The substantial rise in equity decline coming in the second half. In Italy, long-term prices last year was only a bit below that registered in rates declined much more, about 375 basis points, in 1995. However, in contrast to 1995, when bond rates response to low growth in real output, substantial declined substantially, the equity gains last year came progress in lowering inflation, and sizable, credible despite the net rise in bond rates. Corporate earnings measures to reduce the government deficit. In conwere robust last year, but their advance fell short of trast, long-term rates in the United Kingdom rose share price increases, and price-earnings ratios rose slightly as the economy strengthened. Rates in Japan to unusually high levels; dividend-price ratios were rose early in the year as the economy spurted, but even more out of line with historical experience. subsequent indicators of a weakening expansion Market participants appear to be anticipating further caused rates to turn back down; over the year, they robust earnings growth, and they also seem to be declined about 40 basis points on net. Long-term requiring much less compensation for the extra risk rates abroad have moved down slightly further so of holding equities compared to, say, Treasury bonds. far this year. Short-term market rates in the foreign Such evaluations may be based on a perceived industrial countries on average declined about environment of persisting low inflation and balanced 120 basis points during 1996. Except in Japan, offieconomic growth that would lower the odds of dis- cial central bank lending rates were lowered in the ruptions to economic activity. Other asset prices were foreign G-10 countries last year, contributing to the generally subdued. Commodity prices were flat to decline in market rates. down. Commercial real estate prices, although no Equity prices in most industrial countries rose longer falling, rose at little more than the rate of strongly last year. The major exception was Japan, inflation. Residential real estate prices increased where prices on balance fell slightly. The general moderately. decline in long-term interest rates abroad and moves toward monetary ease were among the factors con- Exchange Rates. The foreign exchange value of tributing to the upward movement in stock prices. the dollar in terms of the currencies of the other G-10 The dollar appreciated in nominal terms about countries rose about 4 percent during 1996. When 2Vi percent on balance against the Mexican peso measured in terms of the currencies of a broader during 1996, with much of that appreciation coming group of U.S. trading partners and adjusted for differ- over a few weeks in October. After having fluctuated ences in consumer price inflation, the appreciation of in a narrow range for most of the year, the Mexican the dollar last year was also about 4 percent. Much of peso depreciated in terms of the dollar when market the rise in the exchange value of the dollar occurred participants became concerned about the loss of comduring the first half of the year. Indications of greater- petitiveness of Mexican exports during the year and than-expected underlying strength in the U.S. econ- about the partial nature of the government's planned omy and signs of weakness in some European econo- privatization of the petrochemical industry. Peso mies in the first two quarters reinforced market interest rates rose in October and November, but have expectations that U.S. monetary policy was less likely since more than retraced that increase as the peso has to be eased than was policy in the other industrial stabilized. In January, Mexican officials repaid all countries. These expectations boosted U.S. long-term remaining outstanding obligations to the Exchange interest rates relative to those abroad and contributed Stabilization Fund of the U.S. Treasury, completing to upward pressure on the dollar. The dollar fluctu- repayment to the United States of all borrowings that ated somewhat from June through December but on were made following the peso crisis in late 1994; a balance changed little. Over the course of 1996, the partial early repayment was made to the International dollar appreciated 12 percent in terms of the yen and Monetary Fund as well. 73/ 4 percent in terms of the mark. During the first In the first three quarters of 1996, large increases weeks of 1997, the dollar's average value against the were reported in both foreign ownership of assets in G-10 currencies has again moved up, appreciating the United States and U.S. ownership of assets about 7 percent since the end of December, as eco- abroad. Over the same period, foreign official assets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 187 in the United States increased almost $90 billion. Part ernment agency bonds were equally large. Foreign of this increase was associated with exchange market direct investment in the United States surged to a intervention by the Japanese authorities to counter a record $71 billion in the first three quarters, reflecting brief strengthening of the exchange value of the yen numerous mergers and acquisitions of U.S. compaearly in the year, but a larger part reflected the nies by foreigners. repurchase of reserves by several European countries U.S. private investors also added rapidly to their whose currencies strengthened against the mark. holdings of foreign assets in the first three quarters of About half reflected increases in reserves of newly 1996. In contrast to foreign investors in the United industrializing countries. States, U.S. portfolio investors favored foreign stocks Private foreigners also added substantially to their over bonds. Net purchases in Japan were particularly assets in the United States in the first three quarters of large in the first half of the year. In addition, U.S. 1996. Net purchases of U.S. Treasury securities by direct investment abroad remained strong, reflecting private foreigners amounted to $85 billion through acquisitions and continued privatizations of foreign September, and net purchases of corporate and gov- firms. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report describes Treasury and System one point establishing forty-five-month and twentyforeign exchange operations for the period from four-month highs of ¥116.40 and DM 1.5665 respec- October through December 1996. It was presented by tively. On a trade-weighted basis against the curren- Peter R. Fisher, Executive Vice President, Federal cies of the other Group of Ten countries, the dollar Reserve Bank of New York, and Manager for Foreign appreciated 0.2 percent. The dollar strengthened Operations, System Open Market Account. Richard despite a shift in market expectations during the Dzina was primarily responsible for preparation of quarter from anticipation of a near-term tightening of the report.1 U.S. monetary policy to the view that the Federal Open Market Committee (FOMC) would not take During the quarter the dollar appreciated 3.9 percent any action through the end of the year. Against the against the yen and 0.9 percent against the mark, at yen, the dollar was supported by perceptions of substantial Japanese capital outflows, as economic data and concerns about the Japanese financial system 1. The charts for the report are available on request from Publicareaffirmed expectations that Japanese monetary poltions Services, Mail Stop 127, Board of Governors of the Federal Reserve System, Washington, DC 20551. icy would remain unchanged. After trading slightly 1. Foreign exchange holdings of U.S. monetary authorities based on current exchange rates, 1996:Q4 Millions of dollars Quarterly changes in balances by source IItteemm SSeepp BB tt.. aa ll 33 aa 00 nn ,, cc ee 11 ,, 99 9966 Net purchases Impact of Investment Currency DDeecc BB .. aa 33 llaa 11 nn ,, cc 11 ee,, 99 9966 and sales1 sales2 income ad v j a u l s u t a m ti e o n n t s3 FEDERAL RESERVE Deutsche marks 13,038.9 .0 .0 90.8 -99.6 13,030.1 Japanese yen 6,376.8 .0 .0 6.2 -230.3 6,152.7 Interest receivables4 72.0 81.7 Other cash flow from investments5 -3.5 -1.0 Total 19,484.2 19,263.5 U.S. TREASURY EXCHANGE STABILIZATION FUND Deutsche marks 6,599.8 .0 .0 45.3 -50.4 6,594.6 Japanese yen 9,348.5 .0 .0 6.2 -331.1 9,023.6 Mexican pesos6 3,500.0 -69.1 .0 69.1 ,07 3,500.0 Interest receivables4 39.1 49.6 Other cash flow from investments5 1.2 6.2 Total 19,488.6 19,161.7 NOTE. Figures may not sum to totals because of rounding. 5. Cash flow differences from payment and collection of funds between 1. Purchases and sales include foreign currency sales and purchases related to quarters. official activity, swap drawings and repayments, and warehousing. 6. See table 4 for a breakdown of Mexican swap activities. Note that the 2. Calculated using marked-to-market exchange rates; represents the differ- investment income on Mexican swaps is sold back to the Bank of Mexico. ence between the sale exchange rate and the most recent revaluation exchange 7. Valuation adjustments on peso balances do not affect profit and loss rate. Realized profits and losses on sales of foreign currencies computed as the because the effect is offset by the unwinding of the forward contract at the difference between the historic cost-of-acquisition exchange rate and the sale repayment date. Although the ESF does not mark to market its peso holdings, exchange rate are shown in table 2. Mexico is obligated to maintain in dollar terms the value of ESF peso hold- 3. Foreign currency balances are marked to market monthly at month-end ings resulting from Mexican drawings under the Medium-Term Stabilization exchange rates. Agreement. 4. Interest receivables for the ESF are revalued at month-end exchange rates. Interest receivables for the Federal Reserve System are carried at average cost of acquisition and are not marked to market until interest is paid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

189 weaker against the mark early in the period, the 2. Net profits or losses (-) on U.S. Treasury dollar appreciated against the German currency after and Federal Reserve foreign exchange operations calls from several European officials welcoming fur- based on historical cost-of-acquisition exchange rates, 1996:Q4 ther depreciation of their currencies. Also, general Millions of dollars optimism about the European Monetary Union (EMU) process prompted flows out of marks into U.S. Treasury Federal Exchange Period and item other European currencies. The U.S. monetary Reserve Stabilization Fund authorities did not undertake any intervention operations during the quarter. Valuation profits and losses on outstanding assets and liabilities, Sept. 30, 1996 Deutsche marks 2,065.5 636.6 Japanese yen 1,211.2 1,783.0 GENERAL STABILITY OF EXCHANGE RATES Total 3,276.8 2,419.6 Realized profits and losses from foreign currency sales, The relative stability that characterized foreign Sept. 30, 1996-Dec. 31, 1996 exchange markets through the first three quarters of Deutsche marks .0 .0 Japanese yen .0 .0 1996 continued during the period. Although the aver- .0 .0 age daily trading range for the dollar increased Valuation profits and losses on slightly from the previous quarter, it remained suboutstanding assets and liabilities, stantially less than the range observed for the same Dec. 31, 1996< Deutsche marks 1,965.9 586.1 period in 1995. On average, the dollar traded in a Japanese yen 984.5 1,450.8 daily range of 0.7 percent against both the mark and Total 2,950.4 2,036.9 the yen. This compares with daily ranges of 0.6 per- NOTE. Figures may not sum to totals because of rounding. cent against both currencies in the previous period 1. Valuation profits or losses are not affected by peso holdings, which are and with daily ranges of 1 percent against the mark canceled by forward contracts. and 1.1 percent against the yen for the fourth quarter of 1995. Despite a few brief periods of sharp movements, the dollar generally firmed in a moderate DEPRECIATION OF THE YEN AMID manner throughout the period. PERCEPTIONS OF JAPANESE CAPITAL Nevertheless, implied volatility on dollar-mark OUTFLOWS and dollar-yen one-month options increased during the quarter. The probability distribution of future Japanese economic data, as well as the failure of exchange rates implied by currency options prices several financial institutions, suggested that the pace became notably wider, possibly a reflection of of economic recovery in Japan had not accelerated some concern about the variability of the future spot and bolstered market expectations that a near-term rate. tightening of Japanese monetary policy was unlikely. The anticipation of fiscal contraction in 1997 and weakness in the Nikkei stock index helped solidify A SHIFT OF EXPECTATIONS FOR this view. U.S. MONETARY POLICY TO NEUTRAL The yen weakened substantially in this environment, not only against the dollar but also on a trade- In September the decision of the FOMC to leave rates weighted basis as ongoing reports of capital outflows unchanged, followed by evidence of an economic from Japanese investors seeking higher yields slowdown and benign inflationary pressures, shifted overseas pressured the currency. In October and expectations for U.S. monetary policy from near- November net capital outflows from Japan exceeded certain tightening in late 1996 to a widespread con- 1 trillion yen each month. Reportedly contributing to sensus that the Committee would not take any action the capital outflow was the reallocation of additional by year-end. At certain points during the quarter, the funds from domestic to international portfolios weaker data even spawned tentative discussions of with the start of the Japanese fiscal half-year on the prospect of easing. Despite the shift in market October 1. expectations and the corresponding downward trend As the yen continued to weaken, market particiin U.S. forward rates, the dollar appreciated during pants began to speculate about the degree of official the period as non-U.S. factors appeared to dominate tolerance for additional depreciation of the Japanese currency trading. currency. On November 7, comments by Japanese Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin • March 1997 officials suggested that Japanese economic weakness THE DOLLAR'S NEW 1996 HIGH was overstated and that the yen was unlikely to AGAINST THE MARK weaken further. After having strengthened more than ¥114 earlier in the quarter, the dollar retraced most of Against the mark, the dollar weakened slightly early its earlier gains after these comments were made, in the period amid open debates over the terms of the weakening almost 2 yen, the sharpest one-day move economic stability pact, which dampened optimism in the period. Although speculation about Japanese about the EMU process, and a growing belief that official views on the exchange rate dominated dollar- Germany had reached the end of its easing cycle. At yen trading for the remainder of the quarter, the the same time, ebbing expectations of a tightening by yen continued to depreciate as market participants the FOMC prompted a narrowing of long-term intersaw little tangible evidence of a Japanese economic est rate differentials and reduced a key element of recovery. support for the dollar. Meanwhile, the mark was also U.S. and Japanese trade data during the period supported by heavy flows out of yen. suggested that the pace of adjustment in the Japanese The dollar began a rapid appreciation midway external imbalance might be slowing and focused through the period, however. In nine consecutive attention on the rising dollar as a potential trade trading sessions between November 21 and Decemissue. Nevertheless, trade data released during the ber 4, the dollar strengthened from just below period had little lasting effect on currency trading, DM 1.50 to more than DM 1.56, with each closing and expectations of Japanese capital outflows domi- rate exceeding that of the previous day. The dollar nated market psychology. appreciation coincided with more favorable EMU sentiment after the Italian lira's re-entry to the European Exchange Rate Mechanism and after indications that a stability pact would be negotiated at the Dublin 3. Currency arrangements, December 31, 1996 summit. In addition, the dollar benefited from a brief Millions of dollars reconsideration of prospects for further easing in Institution Amount of Outstanding, Germany and the perception that the monetary •ti facility Dec. 31, 1996 authorities of continental Europe would welcome fur- FEDERAL RESERVE ther depreciation of their currencies. RECIPROCAL CURRENCY ARRANGEMENTS In the first two weeks of December, equity, fixed Austrian National Bank 250 0 income, and currency markets became more volatile National Bank of Belgium . 1,000 as market participants closed out positions before Bank of Canada 2,000 National Bank of Denmark 250 year-end. Nevertheless, previously established Bank of England 3,000 Bank of France 2,000 themes, particularly with respect to expectations for Deutsche Bundesbank 6,000 continued Japanese capital outflows, dominated Bank of Italy 3,000 holiday-thinned currency trading, and the dollar con- Bank of Japan 5,000 Bank of Mexico1 3,000 tinued to appreciate as the year-end approached. Netherlands Bank ... 500 Bank of Norway 250 Bank of Sweden 300 Swiss National Bank 4,000 TREASURY AND FEDERAL RESERVE FOREIGN Bank for International Settlements Dollars against Swiss francs EXCHANGE RESERVES Dollars against other authorized European currencies At the end of the quarter, the foreign currency reserve Total holdings of the Federal Reserve System and the US. TREASURY EXCHANGE STABILIZATION FUND CURRENCY ARRANGEMENTS 4. Drawings/rollovers and repayments (-) by Mexican Deutsche Bundesbank Bank of Mexico1 monetary authorities, 1996:Q4 Regular swaps Millions of dollars United Mexican States1 Medium-term swaps Currency arrangements Out- Out- Total1 with the U.S. Treasury standing, Oct. Nov. Dec. standing, Sept. 30, Dec. 31, Exchange Stabilization Fund 1996 1996 1. Facilities available to Mexico comprise short-term swaps between the Bank of Mexico and both the Federal Reserve and the ESF, as well as medium- Bank of Mexico term swaps and government guarantees between the government of Mexico and Regular 0 0 0 0 0 the ESF. The total amount available from both medium-term swaps and govern- Medium-term 3,500 0 0 0 3,500 ment guarantees is $20 billion, less any outstanding drawings on the shortterm facilities. NOTE. Data are on a value-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 191 Exchange Stabilization Fund (ESF) were valued at Japanese and German government securities held $19.2 billion and $15.6 billion, respectively, and con- under repurchase agreement are arranged either sisted of German marks and Japanese yen. through transactions executed directly in the market The U.S. monetary authorities invest all their or through agreements with official institutions. Govforeign currency balances in a variety of instru- ernment securities held under repurchase agreements ments that yield market-related rates of return and by the U.S. monetary authorities totaled $10.5 billion have a high degree of liquidity and credit quality. A at the end of the quarter. Foreign currency reserves significant portion of these balances is invested are also invested in deposits at the Bank for Internain German and Japanese government securities tional Settlements and in facilities at other official held either directly or under repurchase agreement. institutions. • As of December 31, outright holdings of government securities by U.S. monetary authorities totaled $7.7 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Industrial Production and Capacity Utilization for January 1997 Released for publication February 14 cent above its level of January 1996. Capacity utilization edged down 0.2 percentage point, to 83.3 per- Industrial production was unchanged in January after cent, matching the average level in the last half of a sharp rise late last year. The production index for 1996. business equipment rose further in January, but the When analyzed by market group, the data show indexes for consumer goods and for materials were that the output of consumer goods was unchanged in little changed. The output of construction supplies January after having risen at a rapid pace in the fell for a second month. At 117.7 percent of its 1992 preceding two months. Among durables, the producaverage, industrial production in January was 4.7 per- tion of appliances fell in January, more than reversing Industrial production indexes Twelve-month percent change Twelve-month percent change Total industry Manufacturing Materials Durable manufacturing Products Nondurable manufacturing Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 Total industry Manufacturing Capacity Capacity Production Production Percent of capacity Percent of capacity Total industry Manufacturing Utilization Utilization 1983 1985 1987 1989 1991 1993 1995 1997 1983 1985 1987 1989 1991 1993 1995 1997 All series are seasonally adjusted. Latest series, January. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

193 Industrial production and capacity utilization, January 1997 Industrial production, index, 1992=100 Percentage change CCaatteeggoorryy 11999966 11999977 1996' 1997 JJaann.. 11999966 ttoo Oct.r Nov.r Dec.r Jan.P Oct.r Nov.r Dec/ Jan.? JJaann.. 11999977 Total 116.2 117.1 117.7 117.7 4.7 Previous estimate 116.0 116.9 117.7 Major market groups Products, total2 112.8 113.9 114.2 114.3 .1 1.0 .2 .1 4.8 Consumer goods ... 110.8 112.1 112.8 112.9 .3 1.1 .7 .0 4.2 Business equipment 128.8 129.9 130.5 131.5 .4 .9 .4 .8 7.8 Construction supplies 117.7 119.5 117.3 116.5 -1.8 1.6 -1.8 -.7 5.2 Materials 121.7 122.2 123.2 123.0 .4 .4 .8 -.1 4.7 Major industry groups Manufacturing 117.6 118.5 119.4 119.1 .2 .8 .7 -.2 5.1 Durable 127.1 128.4 129.2 129.1 -.1 1.0 .6 .0 6.3 Nondurable 107.4 108.0 108.9 108.5 .5 .5 .9 -.4 3.7 Mining 103.4 103.4 104.9 104.2 .0 .0 1.4 -.7 5.3 Utilities 111.9 113.1 109.8 113.0 .7 1.1 -2.9 2.9 .4 Capacity utilization, percent MEMO Capacity, cceennttaaggee 1996 1997 cchhaannggee,, Average, Low, High, JJaann.. 11999966 1967-96 1982 1988-89 Jan. Oct.r Nov.' Dec.r Jan.? ttoo JJaann.. 11999977 Total 82.1 71.1 85.3 82.4 83.0 83.4 83.5 83.3 3.7 Previous estimate 82.8 83.2 83.5 Manufacturing 81.2 69.0 85.7 81.5 82.0 82.4 82.7 82.2 4.1 Advanced processing 80.6 70.4 84.2 79.9 79.9 80.5 80.9 80.6 4.9 Primary processing . 82.3 66.2 88.9 85.0 86.7 86.6 86.7 86.0 2.4 Mining 87.5 80.3 86.8 86.9 91.0 91.0 92.3 91.6 -.2 Utilities 87.2 75.9 92.6 91.0 89.0 89.9 87.1 89.4 2.2 NOTE. Data seasonally adjusted or calculated from seasonally adjusted 2. Contains components in addition to those shown, monthly data. r Revised, 1. Change from preceding month. p Preliminary. the sharp gain in December, while the output of three of the last four months. The production of motor vehicles advanced further. Among nondurable business supplies has drifted lower recently. consumer goods, the output of energy products rose The output of materials, which also grew rapidly steeply, as utility output for residential use rebounded late last year, was little changed in January. Within from the low in December. The production of non- durables, the output of parts for equipment and for durable consumer goods excluding energy products consumer durables rose further but was offset by edged down following very rapid gains in the fourth declines elsewhere. Among the components of nonquarter. durables materials, the output of textile and chemical The output of business equipment rose 0.8 percent materials fell, while the production of paper and further in January. As has been the case for some other nondurable materials posted gains. Within time, gains in the production of transit equipment and energy materials, a rebound in electricity generation information processing equipment accounted for largely matched a decline in coal production. most of the strength in this sector. These increases When analyzed by industry group, the data show were partly offset by a small decline in the production that manufacturing output edged down 0.2 percent of industrial equipment, which, on balance, has been after an increase of 0.7 percent in December. Within little changed since the middle of 1995. durables, sizable gains in the production of com- The production of intermediate products declined puters and transportation equipment were offset 0.5 percent in January after a downward-revised drop by reductions elsewhere. Within nondurables, most of 0.8 percent in December. The output of construc- major industries posted declines, although the tion supplies, which advanced briskly over the spring production of food and chemical products ticked and summer months, has now declined noticeably in up slightly. The sharp bounceback in utility output Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletin • March 1997 more than offset a small decline in output at 0.3 percentage point, to 80.6 percent; the rate for mines. primary-processing industries dropped 0.7 percent- The factory operating rate decreased 0.5 percent- age point, to 86.0 percent. age point, to 82.2 percent, which is about the same This release and the history for all published series level as the average in the last half of 1996. The are available on the Internet at the Board's World utilization rate for advanced-processing industries fell Wide Web site, http://www.bog.frb.fed.us. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

195 Statements to the Congress Statement by Alan Greenspan, Chairman, Board of historical patterns, such an increase in wealth might Governors of the Federal Reserve System, before the have inspired households to spend an enlarged share Committee on the Budget, U.S. Senate, January 21, of their current income; but, if we take the available 1997 data at face value, households appear instead to have set aside a greater share of their income for financial I am pleased to appear here today. In just a few weeks investment. Perhaps Americans are finally becoming the Federal Reserve Board will submit its semiannual conscious of the need to accumulate additional assets report on monetary policy to the Congress. That to ensure not only that they can handle temporary report and my accompanying testimony will cover in interruptions in employment but also that they will detail our assessment of the outlook for the U.S. have the wherewithal to enjoy a lengthy retirement economy and the challenges facing monetary policy. down the road. This morning, I would like to offer some personal Be that as it may, the increased flow of private perspectives on the current economic situation. savings—and a reduced call upon those savings by I think it is fair to say that the overall performance the Treasury—helped to fund substantial increases in of the U.S. economy has continued to surpass fixed investment last year. Homebuilding activity was most forecasters' expectations. The current cyclical up considerably; notably, single-family housing starts upswing is now approaching six years in duration, were robust once again and helped to push the and the economy has retained considerable vigor, nation's homeownership rate to a fifteen-year high. In with few signs of the imbalances and inflationary addition, business fixed investment posted another tensions that have disrupted past expansions. strong advance. Firms acquired large amounts of Although the data for the fourth quarter are still computing and telecommunications equipment in incomplete, it is apparent that real gross domestic particular, seeking to enhance the efficiency of their product posted an increase in the neighborhood of operations as well as their overall productive capac- 3 percent over the four quarters of 1996. This ity. At the same time, they accumulated inventories increase may seem quite moderate compared with the rather cautiously: Stock-to-sales ratios, which had gains registered in some earlier years of the postwar risen in 1995, were in many cases near historic lows period; however, at a time when the working age as of November 1996, the most recent month for population is expanding relatively slowly and unem- which statistical information is available. ployment is already low, this economic growth is The growing economy had beneficial effects on the appreciable indeed. It was enough to generate more finances of many states and localities, which consethan 2xh million new payroll jobs last year and to quently could spend more on needed infrastructure cause the unemployment rate to edge down to and vital services and, in some instances, trim taxes. 51/4 percent—a figure roughly matching the low of Of course, overall government sector purchases were the last cyclical upswing, in the late 1980s. But, in held down by the ongoing efforts to reduce the fedcontrast to that earlier period, we have not experi- eral deficit. It clearly was private demand that drove enced a broad increase in inflation; in fact, by some economic growth last year. important measures of price trends, inflation actually To be more specific, it was domestic private slowed a bit in 1996. demand that did so, for net exports fell, on balance, in The balance and solidity of the expansion last year 1996. The volume of goods and services we sold can be seen in the composition of the growth. Nota- abroad grew appreciably, despite moderate economic bly, consumers appear to have been rather conserva- expansion by our major trading partners, but our tive in their spending. In some instances, they may imports continued to grow at a rapid clip. In fact, have been constrained by the debt-service burdens imports provided a safety valve in a U.S. economy accumulated over the previous few years; but in the marked by a high degree of resource utilization. aggregate, households experienced an enormous fur- I have already noted that our unemployment rate ther accretion of net worth as the stock market contin- reached the lowest level in some time. Moreover, ued to climb at a breathtaking rate. Judging from throughout the year, we heard reports from around Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin • March 1997 the country that qualified workers were in tight sup- and other consumer durables from buyers' efforts to ply. Although increases in hourly compensation beat future price increases. Countering this inflation remained relatively subdued—an important fact to required a major monetary tightening, which moved which I shall return in a few moments—they did both nominal and real interest rates up sharply and become more sizable, and they raised unit costs when led to substantial contractions in housing and other employers were unable to enhance productivity com- interest-sensitive sectors in the early 1980s. mensurately. Thanks to the very substantial additions In contrast, as I have mentioned several times to to facilities in the past few years, physical capacity in the Congress over the past few years, perhaps the the manufacturing sector was not greatly strained. dominant characteristic of the current expansion is The question is, of course, where do we go from low inflation and quiescent inflation expectations, here? Can we continue to achieve significant gains in which have helped create a financial environment real activity while avoiding inflationary excesses? conducive to strong capital spending and longer- Because monetary policy works with a lag, it is not range planning generally. I emphasized this point in the conditions prevailing today that are critical but our Humphrey-Hawkins testimony of a year ago. rather those likely to prevail six to twelve months, or Since then, increases in hourly compensation as meaeven longer, from now. Hence, as difficult as it is, we sured by the employment cost index have continued must arrive at some judgment about the most prob- to fall far short of what they would have been if able direction of the economy and the distribution of historical relationships between compensation gains risks around that expectation. and the degree of labor market tightness had held. Fortunately, economic events are not wholly ran- Reaching some judgment about the reasons for this dom and unforecastable. There are certain principles, departure from past patterns is important. As I see it, and certain empirical regularities in behavioral rela- heightened job insecurity explains a significant part tions, that we can follow with some degree of confi- of the restraint on compensation and the consequent dence. For example, capital investment responds in a muted price inflation. predictable way to the rate of growth of the economy, Surveys of workers have highlighted this extraorexpected profitability, and the cost of capital. Simi- dinary state of affairs. In 1991, at the bottom of the larly, housing activity, with some qualifications, recession, a survey of workers at large firms indimoves inversely with mortgage rates. And the largest cated that 25 percent feared being laid off. In 1996, component of final demand, personal consumption despite the sharply lower unemployment rate and the expenditures, generally follows income over time. demonstrably tighter labor market, the same survey Many of these relationships are embedded in the organization found that 46 percent were fearful of a traditional notion of the business cycle developed by job layoff. Wesley Clair Mitchell three-quarters of a century ago The continued reluctance of workers to leave their and worked out with Arthur F. Burns, one of my jobs to seek other employment as the labor market predecessors, in the definitive tome Measuring Busi- has tightened provides further evidence of such ness Cycles. Their insights remain relevant today. concern, as does the tendency toward longer labor Even so, each cycle tends to have its own identify- union contracts. For many decades, contracts rarely ing characteristic. For example, in the late 1980s and exceeded three years. Today, one can point to fivethe recessionary period of the early 1990s, the econ- and six-year contracts—contracts that are commonly omy was dominated by the sharp fall in the market characterized by an emphasis on job security and that value of commercial real estate; because such real involve only modest wage increases. The low level of estate served as a major source of loan collateral, the work stoppages of recent years also attests to concern drop in its value had a profoundly restrictive influ- about job security. ence on the willingness and ability of commercial Thus, the willingness of workers to trade off banks to lend. As you may recall, at that time, I smaller increases in wages for greater job security characterized the economy as trying to advance in the seems to be reasonably well documented for this face of fifty-mile-an-hour headwinds. The severe particular business cycle expansion. The unanswered credit restraint was only grudgingly responsive to the question is why this insecurity has persisted even as extended efforts of the Federal Reserve to ease mone- the labor market has, by all objective measures, tighttary conditions. ened considerably. One possibility is the ongoing Similarly, the dramatic rise of inflation and of concern of workers about job skill obsolescence. The inflation expectations in the 1970s was key in shap- reality of this obsolescence is evidenced by the ing the cyclical patterns of that period. One manifes- marked expansion of on-the-job training programs, tation was the impetus to spending on houses, cars, especially in technical areas, in many of the nation's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 197 corporations. No longer can one expect to obtain all already be running its course. If so, the important of one's lifetime job skills with a high school or question from a monetary policy point of view is college diploma. Indeed, continuing adult education whether prospective labor market conditions will be is perceived to be increasingly necessary to retain a consistent with the maintenance of satisfactory price job. performance. Certainly, there are other possible explanations of I would like to conclude with a brief discussion of the softness in compensation growth in the past few some issues of measurement and economic data that years. The sharp deceleration in health care costs, of may be useful as you begin your deliberations on the course, is cited frequently. Another possibility is the 1998 budget. One issue you will have to grapple with heightened pressure on firms and their workers in is the growing consensus that the consumer price industries that compete internationally. Domestic index—and other broad price measures that rely deregulation has had similar effects on the intensity heavily on CPI data in their construction—are subof competitive forces in some industries. In addition, stantially overstating changes in the true cost of the continued decline in the share of the private work living. From your perspective, one important implicaforce in labor unions has likely made wages more tion of the CPI bias is that it creates an automatic and responsive to market forces—indeed, the converse is presumably unintended real increase in social secualso true in that the new competitive realities have in rity and other indexed federal benefits and a real cut many instances undermined union strength. In any in indexed individual income taxes each year. Less event, although I do not doubt that all these explana- widely recognized is the fact that, for a given level of tions are relevant, I would be surprised if any were nominal spending, the upward bias in the CPI in dominant. many cases is mirrored in a downward bias in esti- Another potential explanation is that persistently mates of real spending; this muddies the interpretalow price inflation is constraining wage increases. tion of both recent economic developments and Historical evidence clearly indicates that price infla- longer-run trends in our economic performance. tion is a factor in wage change. But, if the causation Several researchers have attempted to quantify the is running mainly from product markets, where prices bias in the CPI and other broad measures of prices. are set, to labor markets, where wages are set, then One set of studies has examined the detailed microwe would expect to see some squeeze on profit statistical evidence on price measurement. The margins. Clearly, this is not the case at present. Boskin Commission drew heavily on these studies Rather, owing in part to the subdued behavior of and concluded that the CPI is currently overstating wages, profits and rates of return on capital have changes in the true cost of living approximately 1 perrisen to high levels. The high rates of return, in turn, centage point per year. In addition to some technical seem to be inducing competitive pressures that limit factors associated with its construction, the CPI overthe ability of firms to raise prices relative to their states inflation because of the slow introduction of underlying cost structures because they fear that new products and inadequate adjustment for quality competitors anxious to capture a greater share of improvements. the market will not follow suit. Thus, the evidence Recently, researchers at the Federal Reserve Board seems more consistent with the view that wage have looked at the measurement issue from a macrorestraint is damping price increases than the other economic perspective. This analysis, which questions way around. whether the pattern implied by the published price, If the job insecurity paradigm that I have outlined output, and productivity statistics makes sense, also is the key, then we must recognize that, as I indicated suggests that the inflation rate is overstated. In parin last February's Humphrey-Hawkins testimony, ticular, the research finds that measured real output "suppressed wage cost growth as a consequence of and productivity in the service sector of the economy job insecurity can be carried only so far. At some are implausibly weak, given that the return to the point in the future, the trade-off of subdued wage owners of these businesses that is implicit in our growth for job security has to come to an end." In aggregate statistics on GDP apparently has been well short, this implies that even if the level of real wages maintained. The published data indicate that the level remains permanently lower as a result of the experi- of output per hour in several service-producing indusence of the past few years, the relatively modest tries has been falling for more than two decades— wage gains we have seen are a transitional rather than that is, that firms in these industries have been getting a lasting phenomenon. The unknown is how long the less and less efficient for more than twenty years. transition will last. Indeed, the recent pickup in some This pattern is highly unlikely. Price mismeasuremeasures of wages suggests that the transition may ment seems to be the most probable explanation of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin • March 1997 the data anomalies, and the order of magnitude were designed for steam-driven power plants. Not appears consistent with the microstatistical results. until the gradual conversion of previously vertical The evidence that inflation has been slower and factories into horizontal facilities, mainly in the that real growth has been faster than the official 1920s, were firms able to take full advantage of the measures indicate is welcome, in part because it synergies implicit in the electric dynamo and thus suggests that the nation's current level of economic achieve dramatic increases in productivity. Analowell-being is higher than we had thought. But I want gously, not all of today's production systems can be to make clear that revising our historical estimates of easily integrated with new information and communireal growth to incorporate better price data would cation technologies. Some existing equipment cannot have no material effect on measures of the degree of be controlled by computer, for example. Thus, the resource utilization because such a revision implies full exploitation of even the current generation of faster growth in potential output as well as actual information and communication equipment may output; accordingly, it does not alter the relationship occur over quite a few years and only after a considbetween resource utilization and inflation. Nor does it erably updated stock of physical capital has been put change the outlook for the federal budget deficit, in place. apart from any modifications to the indexing formu- Although such a scenario is quite plausible, we las for entitlements and income taxes. cannot be certain when, or if, it will occur. Thus, Certainly, the judgment that aggregate productivity we must be vigilant to ensure that our economy has been growing faster than indicated by the official remains sufficiently flexible for entrepreneurial initiastatistics seems reasonable in light of the significant tives. And we must continue our efforts to further business restructurings and extraordinary improve- enhance productivity growth by raising national savments in technology in recent years. I do not mean to ing and spurring capital formation. Attaining a higher imply, however, that we should assume that the full national saving rate quite soon is crucial, particularly productivity gain from information technology has in view of the anticipated shift in the nation's demoalready been reaped. Clearly, it takes some time for graphics and associated pressures on federal retirefirms to adopt production techniques that translate a ment and health programs in the first few decades of major new technology into increased output. In an the next century. Reducing the size of the federal intriguing parallel, electric motors in the late nine- budget deficit, and over time moving the unified teenth century were well known as a technology but budget into surplus, would go a substantial way in were initially integrated into production systems that that direction. • Statement by Alan Greenspan, Chairman, Board of discussion considerably. These efforts, along with the Governors of the Federal Reserve System, before the continuing contributions of the Bureau of Labor Sta- Committee on Finance, U.S. Senate, January 30, 1997 tistics (BLS) research staff, have added importantly to our understanding of the sources of measurement I appreciate the opportunity to appear before you error in the CPI. today. The committee is faced with a number of Any index that endeavors to measure the cost of complex policy issues that will have an important living should aim to be unbiased. That is, a serious bearing on the fiscal health of the nation and the examination of all available evidence should yield welfare of our people well into the next century. I the conclusion that there is just as great a chance that will be happy to respond to questions relating to any the index understates the rate of growth of the target of those issues, but in my formal comments this concept as there is that it overstates the truth. The morning I intend to focus on the accuracy of the present-day consumer price index does not meet this consumer price index. standard. In fact, the best available evidence suggests I would like to begin by commending this commit- that there is virtually no chance that the CPI as tee for having done so much to bring the issue of currently published understates the rate of growth of possible bias in the CPI to the attention of the Con- the appropriate concept. In other words, there is gress and of the nation in general. The hearings almost a 100 percent probability that we are overcomconducted by this committee in 1995, as well as the pensating the average social security recipient for report produced by the advisory commission that was increases in the cost of living and almost a 100 persponsored by this committee, have advanced the cent probability that we are causing the inflation- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 199 adjusted burden of the income tax system to decline those on the Boskin Commission. In particular, more rapidly than I presume the Congress intends. employing the statistical system from which the A major reason for this is that consumers respond Commerce Department estimates the national income to changes in relative prices by changing the compo- and product accounts, the research finds that measition of their actual market basket. At present, how- sured real output and productivity in the service ever, the market basket used in constructing the CPI sector are implausibly weak, given that the return to changes only once every decade or so. Moreover, owners of businesses in that sector apparently has new goods and services deliver value to consumers been well maintained. Taken at face value, the pubeven at the relatively elevated prices that often pre- lished data indicate that the level of output per hour vail early in their life cycles; currently, that value is in a number of service-producing industries has been not reflected in the CPI. falling for more than two decades. In other words, the For that and other reasons outlined in the Boskin data imply that firms in these industries have been Commission report and other studies, we know with becoming less and less efficient for more than twenty near certainty that the current CPI is off. We do not years. know precisely by how much, however. There is, These circumstances simply are not credible. On nonetheless, a very high probability that the upward the reasonable assumption that nominal output and bias ranges between V2 percentage point per year and hours worked and paid of the various industries are IV2 percentage points per year. Although this range accurately measured, faulty price statistics are almost happens to coincide with the one I gave two years surely the likely cause of the implausible productivity ago, it does reflect both the improvements in the trends. The source of a very large segment of these index that the BLS has implemented since then and prices is the CPI. the emergence of evidence suggesting that the initial For this exercise, the study used the gross domestic problem was of a slightly greater dimension than had product chain-weighted price measures. Although previously been estimated. This estimate is consistent these price measures are based on many of the same with a number of microstatistical studies as well as an individual price indexes included in the CPI, they do independently derived macroevaluation by the staff at not suffer from upper-level substitution bias. Hence, the Federal Reserve Board, which I will discuss the price mismeasurement revealed by this data sysshortly. tem largely reflects shortcomings in quality adjust- In judging these evaluations, it is incumbent upon ment and in the treatment of new goods and services. us to resist the evident strong inclination to believe If, instead of declining, productivity in these selected that precision is the equivalent of accuracy in price service industries was flat, to up a modest 1 percentbias estimation. If we cannot find a precise estimate age point per year, the implicit aggregate price bias for a certain bias, we should not implicitly choose associated with these service industries alone would zero as though that were a more scientifically sup- be about V2 percentage point or so per annum in portable estimate. recent years—very similar in magnitude to the There is no sharp dividing line between a pristine Boskin Commission estimate of total quality adjustestimate of a price and one that is not. All of the ment and new products bias. estimates in the CPI are approximations, in some To be sure, it is theoretically possible that some of cases very rough approximations. Further, even very the measured productivity declines in these service rough approximations can give us a far better judg- industries merely reflect mispricing of intermediate ment of the cost of living than holding to a false transfers among various industries. Such an occurprecision of accuracy. We would be far better served rence would cause an understatement of productivity following the wise admonition of John Maynard in some sectors but a corresponding overstatement in Keynes that "it is better to be roughly right than others. But the available evidence suggests that for precisely wrong." these particular service industries this theoretical pos- Estimates of the magnitude of the bias in our price sibility is not of a sufficiently large empirical magnimeasures are available from a number of sources. tude to overturn the basic conclusion that there are Most have been developed from detailed examina- serious measurement problems in our price statistics. tions of the microstatistical evidence. However, Moreover, the study did not attempt to evaluate posrecent work by staff economists at the Federal sible quality and new products bias in other Reserve Board has added strong corroborating evi- industries. dence of price mismeasurement using a macroeco- Some observers who are skeptical that the bias in nomic approach that is essentially independent of the the CPI could be very large have noted that the exercises performed by other researchers, including evidence on the magnitude of unmeasured quality Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin • March 1997 change and the importance of new items bias is cost-of-living index. First, we should move away incomplete and inconclusive. Without a doubt, qual- from the concept of a fixed market basket at the ity change and new items are among the most diffi- upper level of aggregation and move toward an cult of the problems currently confronting the BLS. aggregation formula that takes into account the ten- But since I raised this issue two years ago in my dency of consumers to alter the composition of their testimony before this committee, a number of studies purchases in response to changes in relative prices. have documented significant new examples of cases The BLS already calculates such an index on an in which the current treatment in the CPI results in an experimental basis with a lag of about a year. If the overstatement of the rate of growth of the cost of Bureau adopts the Boskin Commission's recommenliving. dation that it publish a "best practice" version of the Certain components of the CPI are doubtless biased CPI with a lag of a year, it should, without question, downward because quality change is handled inap- build that index on the foundation of a variable propriately. One instance in which there may well be market basket. a problem in this regard pertains to new vehicles, There is a somewhat more difficult issue as to where it may be more appropriate to treat pollution whether the concept of a variable market basket can control and mandatory safety equipment, at least in be applied in "real time," that is, with the same part, as raising price to a consumer rather than degree of timeliness that characterizes the current improving quality as is the present practice. But the CPI. It is not possible to implement the textbook potential downward bias introduced by current meth- versions of any of the so-called superlative index odology for such equipment can only be slight. We formulas in real time because those formulas require should be prepared to embrace credible new research contemporaneous data on expenditures, and those on quality adjustment, regardless of whether that data are not presently available until about a year research points to additional sources of upward bias after the fact. However, this hardly forecloses the or previously undetected instances of downward bias. possibility of implementing an approximation to a Nonetheless, currently available evidence very superlative formula, and work should continue on the strongly supports the view that, on balance, the bias development of such an approximation. is decidedly toward failing to appropriately capture A second area that will require attention is the quality improvements in our price indexes. There is aggregation of prices at the most detailed level of the little reason to believe that this conclusion will index. This is a highly technical area and an imporchange unless we alter our procedures. tant example of how research by the staff at the BLS A more difficult quality-related issue is whether to has advanced our knowledge. Without going into the reflect changes in broad environmental and social details of the matter, it is sufficient to say that a conditions in price measures that are used for index- selective move away from the current aggregation ing various components of federal outlays and formula is warranted and would probably make a receipts. That is, should the CPI reflect the influence modest further contribution to bringing the index of factors such as the level of crime, air and water more in line with the concept of a cost-of-living quality, and the emergence of new diseases, which index. are not specifically related to products that consumers Beyond these rather limited steps, most of the purchase? There is little in the record to suggest that, needed developments will require time, effort, and when it enacted the indexation of social security quite possibly additional resources. It is important benefits in 1972, the Congress intended for the ben- that the Congress provide the Bureau with sufficient eficiaries of that program to be compensated for resources to pursue the agenda vigorously. These are changes in such environmental and social factors. difficult problems and cannot be solved tomorrow or Nor do these issues appear to have been raised when next week. But with adequate support and diligent the Congress debated the indexation of various tax effort, the pace of improvement should quicken. parameters during the 1980s. Taking account of Moreover, an accelerated pace of BLS activity and such conditions, particularly those that lie outside heightened congressional interest should galvanize the markets for goods and services, would be an analysts outside the government to contribute to the interesting exercise in its own right but would appear research effort. to extend well beyond the original intent of the Where will this longer-term effort be required? Congress. One of the key areas, by all accounts, is quality A considerable professional consensus already adjustment. As the Bureau has rightly noted, they do exists for at least two actions that would almost indeed already employ a variety of methods to consurely bring the CPI into closer alignment with a true trol for quality change, but available evidence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 201 suggests that these are not sufficient to the task. shopping experience, and all will be important in Unfortunately, making improvements on this front helping the BLS to develop a more sophisticated will be difficult: Each item will have to be considered statistical method for dealing with the appearance of on its own, and there may well be limited transfer of new consumer outlets, including those that operate knowledge from one item to the next. over the Internet. Another key area on the longer-term agenda will Even if the BLS moves aggressively, some upward be the estimation of the value of new products to bias will almost surely remain in the CPI, at least consumers. Significant innovations, such as the per- for the next several years. Two years ago, in testisonal computer, the cellular telephone, and the heart mony before this committee, I suggested that a workbypass operation, create value for consumers, even at able structure for dealing with this situation might their typically high initial prices; moreover, this value involve a two-track approach. That suggestion still is even greater at the much lower prices that often seems to me to make sense. The first track would prevail when new products are, in fact, introduced involve action by the BLS to address those aspects of into the CPI. A true cost-of-living index would reflect the bias that can be dealt with in relatively short this value and its implication for the true rate of order, say within the next year. The second track growth of the cost of living. The CPI does not reflect would involve the establishment of an independent it and accordingly fails to capture a significant offset national commission to set annual cost-of-living to price rises in other products. Deriving an estimate adjustment factors for federal receipt and outlay proof this value and building it into the CPI will not be grams. The commission would examine available an easy undertaking. But conceptually, it is unques- evidence on a periodic basis and estimate the bias in tionably the right direction to be heading, and some the CPI, taking into account both the latest research recent research suggests that it could measurably on the sources and magnitudes of the bias and any affect the index. corrective actions that had been taken by the BLS. Over time, we will need to investigate alternative This type of approach would have the benefit of sources of data. Already, there is interesting work being objective, nonpartisan, and sufficiently flexible being done to develop techniques for processing data to take full account of the latest information. Morecollected from bar code scanners at the checkout over, there is no reason why the two tracks could not counter. Scanner data will allow the BLS to track not proceed in parallel. just a small sample of products but virtually the entire Without the second track, we are implicitly assumuniverse of products in selected lines of business and, ing, contrary to overwhelming evidence, that the perhaps most importantly, virtually the universe of most accurate estimate of the bias is zero. There has transactions, regardless of whether those transactions been considerable objection that such a second track happen on a weekday, at night, or on a holiday. procedure would be a political fix. To the contrary, We should also move to improve our understand- assuming zero for the remaining bias is the political ing of the value that consumers place on their own fix. On this issue, we should let evidence, not politics, time. Absent such knowledge, it will be impossible drive policy. for the BLS to estimate the value of many goods and We have an overarching national interest in buildservices that mainly serve to enhance convenience ing a better measure of consumer prices and in impleand save time. menting more rational indexation procedures. Finally, we will have to attempt to build an under- Through these efforts, we are most likely to ensure standing of why consumers shop at the places they that the original intent of the relevant pieces of legisdo: What characteristics of an outlet are important lation will be fulfilled in insulating taxpayers and and how much so? Location, hours of operation, benefit recipients from the effects of ongoing changes inventory, and quality of service are all likely influ- in the cost of living. At present this objective is not ences on the value that consumers place on their being met. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Announcements JANET L. YELLEN: RESIGNATION AS A MEMBER Council to replace members whose terms have OF THE BOARD OF GOVERNORS expired and designated a new chairman and vice chairman of the council for 1997. In a letter dated February 12, 1997, Janet L. Yellen The Consumer Advisory Council was established resigned as a member of the Board of Governors by the Congress in 1976, at the suggestion of the effective upon her taking office as Chairman of the Board, to advise the Board on the exercise of its President's Council of Economic Advisers. The text duties under the Consumer Credit Protection Act and of Governor Yellen's letter of resignation follows: on other consumer-related matters. The thirtymember council, with three-year terms that are stag- February 12, 1997 gered to ensure continuity, meets three times a year at The Honorable William Jefferson Clinton the Board's offices in Washington, D.C. The President of the United States Julia W. Seward, Vice President and Corporate The White House Community Reinvestment Officer for Signet Banking Washington, D.C. 20500 Corporation in Richmond, Virginia, was designated Dear Mr. President: chairman. Her term will run through December 1997. William L. Lund, Director of the Office of Consumer It has been a privilege, an honor, and an education to Credit Regulation for the State of Maine, was desigserve as a member of the Federal Reserve Board since nated vice chairman. His term on the council ends in August, 1994. I have found it enormously rewarding to help craft a monetary policy oriented toward job creation December 1998. and price stability, new supervisory and regulatory The eight new members are the following: approaches to insure the safe and sound operation of our financial system, and programs in the areas of community Wayne-Kent A. Bradshaw and economic development. Los Angeles, California I have greatly enjoyed working with Chairman Greenspan, Vice-Chairs Rivlin and Blinder, a dedicated, Since 1989, Mr. Bradshaw has been President and CEO of knowledgeable and collegial group of Governors, and the Family Savings Bank, a $174 million institution with four Fed's highly able and professional staff. I will miss my branches serving primarily South Central Los Angeles. colleagues at the Federal Reserve. But I feel far better Family Savings is the state's largest African-Americanprepared to contribute to the work of the Council of Eco- controlled financial institution. Previously, Mr. Bradshaw nomic Advisers as a consequence of my experience there. was President and CEO of Founders Savings and Loan I am thrilled at the prospect of working with you and Association in Los Angeles. Earlier, he held various posts serving on your outstanding economic team. I will strive to with Union Bank in Los Angeles and Oakland, including insure that the Council of Economic Advisers continues to Vice President/Manager, Asset-Based Financing, and Vice provide sound economic advice, analysis, and insights to President, Northern California Asset Financing Center. Mr. inform the policymaking process. To carry out this transi- Bradshaw served as Chief Deputy Superintendent of the tion, I hereby submit my resignation as a Member of the California State Banking Department, in San Francisco, Board of Governors of the Federal Reserve System effec- from 1981 to 1983. He received a bachelor's degree from tive upon my taking office as Chairman of the Council of the University of Arizona and an M.B.A. from the Univer- Economic Advisers. sity of Southern California. Sincerely, Janet C. Koehler Jacksonville, Florida Janet L. Yellen Ms. Koehler is Senior Manager of Electronic Commerce for AT&T Universal Card Services. From 1990 to February 1996, when she assumed her present duties, she was APPOINTMENTS OF NEW MEMBERS TO THE Executive Director for Consumer Affairs. In that post, she CONSUMER ADVISORY COUNCIL AND was a strong proponent for consumer education and initiated programs reaching out to consumers, including DESIGNATION OF A NEW CHAIRMAN AND management of AT&T Universal Card Services' first mil- VICE CHAIRMAN lion dollar grant to consumer credit education programs across the United States. She has been with the AT&T The Federal Reserve Board on January 6, 1997, corporation since 1975 in various capacities. Ms. Koehler named eight new members to its Consumer Advisory has served on the advisory committee of the National Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

203 Institute for Consumer Education and on the education Pennsylvania nonprofit corporation that manages the committee of the American Council on Consumer Inter- Allegheny West Community Development Project in North ests. She also served on the executive committee of the Philadelphia. The Philadelphia Plan is modeled after the International Credit Association and was chairman of its Allegheny West Project—a comprehensive, cooperative education committee. Ms. Koehler is the recipient of the revitalization program started in 1968 by Tasty Baking National Coalition for Consumer Education Award for Company to improve the quality of life within neighbor- Leadership in Consumer Education and the International hoods adjacent to Tasty's plant and to create opportunities Credit Association's Merit and Distinguished Service for the residents of those neighborhoods. Mr. Price was the Awards. project's organizing and first executive director. From 1983 to 1988, Mr. Price was deputy director of the Urban Affairs Partnership, which included serving as the executive direc- Paul E. Mullings tor of a Ford Foundation initiative to help revitalize several McLean, Virginia Philadelphia inner-city neighborhoods. From 1979 through 1982, Mr. Price served in the Pennsylvania State Senate. Mr. Mullings is President and CEO of the Mortgage Elec- He is a graduate of the University of Pennsylvania Law tronic Registration System, Inc. (MERS), established in School and Harvard College. February 1996. MERS is a national registration system that tracks mortgage rights for the benefit of consumers and the real estate finance industry, and it was conceived by a technology committee of the Mortgage Bankers Associa- Sister Marilyn Ross tion of America (MBA). Mr. Mullings served as a member Omaha, Nebraska of the MBA's Board of Governors from 1995 to 1996 and is a past vice chairman of its fair lending committee. He Sister Marilyn is Executive Director of the Holy Name currently serves on the MBA's legislative committee. Pre- Housing Corporation, a community-based corporation viously, Mr. Mullings was President and CEO of First located in a low-income, predominantly African-American Interstate Bank's Residential Mortgage Company, where neighborhood in Omaha. Holy Name produces quality, he was responsible for mortgage origination, servicing, and affordable homes for low- and moderate-income families. secondary marketing for thirteen western states. He has Sister Marilyn has been associated with the corporation served on Fannie Mae's National Advisory Council. In since 1983, first as development director and then as 1992 he was named "Outstanding Banker of the Year" by project director for a technical assistance grant from the the Los Angeles Urban Bankers. U.S. Department of Housing and Urban Development. She has been Executive Director of the corporation since 1987. In 1988-89, she participated in a National Internship in Carol Parry Community Development with the Development Training New York, New York Institute in Baltimore. Sister Marilyn was instrumental in establishing Omaha 100, a nonprofit lending consortium Ms. Parry is Executive Vice President in charge of the that provides technical and financial assistance to help Community Development Group, Chase Manhattan Bank, low-income homebuyers, and served as its interim execuand Chairman of the Chase Manhattan Community Devel- tive director from 1990 to 1993. Omaha 100's board of opment Corporation. Her responsibilities include all lend- directors and advisory board have broad community-based ing for low- and moderate-income housing, commercial representation—from the banking community, government, revitalization projects, loans guaranteed by the Small Busi- private sector, nonprofit, and religious sectors. ness Administration, loans to community-based not-forprofit organizations, affordable mortgages, corporate contributions and community outreach activities, the bank's minority and women vendor program, and fair lending and Gail Small Community Reinvestment Act compliance. Ms. Parry Lame Deer, Montana serves on the advisory board for the Community Develop- Ms. Small is the founding Director of Native Action, a ment Financial Institutions program under an appointment national model for citizen empowerment on Indian reservaby President Clinton. She chairs the New York Clearing tions. Native Action has established national precedents in House's CRA committee, is co-chair of the New York federal banking law, environmental policy, Indian voter Mortgage Coalition, and is on the executive committee and discrimination, and youth law. Ms. Small is a member of board of directors of the Health Insurance Plan of Greater the Northern Cheyenne Indian Tribe, which gave her the New York. Ms. Parry also serves on the boards of the NYC Cheyenne name "Ve-hon!-naut," meaning Head Chief Housing Partnership, Homes for the Homeless, the Citi- Woman. One of ten children, she was born and raised by zens Housing and Planning Commission, the New York her parents on the Northern Cheyenne Indian Reservation. Landmarks Conservancy, and the New York Community She has served as an elected member of the Northern Investment Company. Cheyenne Tribal Council and remains active in national Indian policy issues, as well as international indigenous issues. At the Fourth United Nations World Conference on Philip Price, Jr. Women and N.G.O. Forum—held recently in Beijing, Philadelphia, Pennsylvania China—Ms. Small was a speaker on indigenous human Mr. Price is Executive Director of The Philadelphia Plan, rights. Her work has earned her numerous awards, includwhich was founded in 1994. The Plan is a long-term ing Ms. Magazine's 1995 Gloria Steinem Women of Vision partnership among the private sector, inner-city neighbor- Award. Ms. Small received a bachelor's degree from the University of Montana and a law degree from the Univerhoods, and city and state governments. Previously, Mr. sity of Oregon School of Law. Price was president of the Allegheny West Foundation, a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 Federal Reserve Bulletin • March 1997 Yvonne S. Sparks Eugene I. Lehrmann, Immediate Past President, Ameri- St. Louis, Missouri can Association of Retired Persons, Madison, Wisconsin. Ms. Sparks is Executive Director of Neighborhood Hous- Errol T. Louis, Treasurer and Manager, Central Brooklyn ing Services of St. Louis, Inc. NHS-St. Louis works in Federal Credit Union, Brooklyn, New York. four urban neighborhoods, two in the central city and two in near-ring suburbs. The twenty-year-old agency operates Ronald A. Prill, Vice President, Credit, Dayton Hudson lending, home repair, homebuyer training, home inspec- Corporation, Minneapolis, Minnesota. tion, resident leadership, property insurance education, and counseling programs. Agency partners and supporters Lisa Rice, Executive Director, Fair Housing Center, include neighborhood residents and organizations, lenders, Toledo, Ohio. insurers, Fannie Mae, and local government. Ms. Sparks has been a manager and executive in nonprofit and local John R. Rines, President, General Motors Acceptance government organizations for twenty years. She joined Corporation, Detroit, Michigan. NHS-St. Louis in 1993. She also serves as vice chairman of the Tax Increment Finance Commission for the City of Margot Saunders, Managing Attorney, Washington St. Louis, as co-chair of the St. Louis Federal Reserve Office, National Consumer Law Center, Washington, D.C. Bank's Mortgage Credit Partnership Insurance Task Force, as a member of the board of directors of the St. Louis Gregory D. Squires, Professor of Sociology, University Regional Housing Alliance, as a member of the steering of Wisconsin-Milwaukee, Milwaukee, Wisconsin. committee of the National Insurance Task Force, and as a member of the advisory committee of the St. Louis Pew George P. Surgeon, Chief Financial Officer and Execu- Civic Entrepreneur Initiative. tive Vice President, Shorebank Corporation, Chicago, Illinois. Other Consumer Advisory Council members, Theodore J. Wysocki, Jr., Executive Director, CANDO, whose terms continue through 1997 and 1998, are Chicago, Illinois. listed below. Richard S. Amador, President and CEO, CHARO PRELIMINARY FIGURES AVAILABLE ON Community Development Corporation, Los Angeles, California. OPERATING INCOME AND EXPENSES OF THE FEDERAL RESERVE BANKS Thomas R. Butler, President and Chief Operating Officer, NOVUS Services, Inc., Riverwoods, Illinois. Preliminary figures released on January 13, 1997, indicate that operating income of the Federal Reserve Robert A. Cook, Partner, Hudson Cook, LLP, Crofton, Banks amounted to $25,163 billion during 1996. Net Maryland. income before payment of dividends, additions to Heriberto Flores, President and CEO, Brightwood surplus, and payments to the Treasury totaled Development Corporation, Springfield, Massachusetts. $20,974 billion. About $20,083 billion of this net income was distributed to the U.S. Treasury during Emanuel Freeman, President, Greater Germantown 1996. Housing Development Corporation, Philadelphia, Pennsylvania. Federal Reserve System income is derived primarily from interest earned on U.S. government securi- David C. Fynn, Senior Vice President, National City ties that the Federal Reserve has acquired through Bank, Manager of Regulatory Risk, National City Corporaopen market operations. Income from the provision tion, Cleveland, Ohio. of financial services amounted to $787.7 million. Robert G. Greer, Chairman of the Board, Bank of Operating expenses of the twelve Reserve Banks Tanglewood, Houston, Texas. and branches totaled $1,781 billion. In addition, earnings credits in the amount of $306.8 million were Kenneth R. Harney, Journalist, Washington Post Writers granted to depository institutions under the Monetary Group, Chevy Chase, Maryland. Control Act of 1980. Assessments to Reserve Banks for Board expenditures totaled $162.6 million, and Gail K. Hillebrand, Litigation Counsel, West Coast Regional Office, Consumers Union of U.S., Inc., San the cost of currency amounted to $402.5 million. Francisco, California. Net deductions from income amounted to $1,639 billion, resulting primarily from unrealized Terry Jorde, President and CEO, Towner County State losses on assets denominated in foreign currencies Bank, Cando, North Dakota. revalued to reflect current market exchange rates. Francine C. Justa, Executive Director, Neighborhood Statutory dividends to member banks were Housing Services of New York, New York, New York. $255.9 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 205 Under the policy established by the Board of Gov- The Federal Reserve Board also requested comernors at the end of 1964, all net income after the ments on January 9 on removing a majority of the statutory dividend to member banks and the amount prudential limitations or firewalls that currently apply necessary to equate surplus to paid-in capital is trans- to bank holding companies engaged in securities ferred to the U.S. Treasury. In October 1996 the underwriting and dealing activities through sec- Reserve Banks also transferred $106 million from tion 20 subsidiaries. The Board is proposing to retain their surplus accounts to the Treasury, as statutorily as operating standards for section 20 subsidiaries a required. limited number of restrictions adapted from the current firewalls. Comments were requested by March 10, 1997. INTERIM RULE ON FREQUENCY CYCLE FOR The Board also announced on January 9 that it EXAMINATIONS OF CERTAIN INSTITUTIONS was eliminating immediately a firewall requiring bank holding companies to seek approval before pro- The Federal Reserve Board, along with the Office of viding funds to their section 20 companies. the Comptroller of the Currency, the Federal Deposit The Federal Reserve Board on January 16, 1997, Insurance Corporation, and the Office of Thrift published for comment proposed amendments to its Supervision issued on January 24, 1997, an interim Regulation E (Electronic Fund Transfers) to carry out rule and requested comment on a proposal to expand statutory amendments to the Electronic Fund Transthe examination frequency cycle for certain finan- fer Act. Comments were requested by February 19, cial institutions. The interim rule was effective 1997. January 30, 1997. Comments on the proposal are The Federal Reserve Board on January 27, 1997, requested by March 31, 1997. issued for comment proposed revisions to its Regu- Implementation of this ruling will expand the lation Z (Truth in Lending), which carry out changes eligibility for the eighteen-month examination cycle to the Truth in Lending Act contained in the Ecofor "2" rated, well-managed banks from the current nomic Growth and Regulatory Paperwork Reduction asset size limit of $100 million to a new limit of Act of 1996. Comments were requested by Febru- $250 million. ary 28, 1997. The ruling will implement section 306 of the Riegle Community Development and Regulatory Improvement Act of 1994 and section 2221 of the Economic Growth and Regulatory Paperwork Reduc- AVAILABILITY OF TRANSCRIPTS OF MEETINGS tion Act of 1996. IN 1991 OF THE FEDERAL OPEN MARKET COMMITTEE REGULATION C: INTERIM RULE The Federal Reserve on January 9, 1997, made available for public inspection transcripts of meetings of The Federal Reserve Board published an interim rule the Federal Open Market Committee (FOMC) that that amends its Regulation C (Home Mortgage Dis- were held during 1991. The package includes tranclosure). The amendment increases the asset-size scripts of eight regularly scheduled meetings and exemption threshold for depository institutions from eleven telephone conference calls. $10 million to $28 million. The rule was effective as Procedures adopted by the FOMC provide for the of January 1, 1997. public release of transcripts for an entire year with a five-year lag. Minutes of each meeting are issued with an approximate six-week lag while decisions PROPOSED ACTIONS made at each meeting are announced on the day of the meeting. The Federal Reserve Board, along with the Federal The 1991 transcripts have been lightly edited to Deposit Insurance Corporation and the Office of the enhance readability and to redact confidential mate- Comptroller of the Currency (banking agencies), on rial, such as information pertaining to individual for- January 9, 1997, requested comments on proposed eign central banks and private business information. regulations regarding qualification requirements for Copies of the transcripts are available from bank employees who sell mutual funds and certain the Board's Freedom of Information Office, Room other securities. Comments were requested by Febru- MP-500, Federal Reserve Board, Washington, DC ary 28, 1997. 20551 (telephone 202-452-3684). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Federal Reserve Bulletin • March 1997 DAYLIGHT OVERDRAFTS AT THE FEDERAL overdrafts are measured at the end of each minute RESERVE BANKS (hh:mm:59) during the standard operating day of the Fedwire funds transfer system, which is currently 8:30:00 a.m. eastern time to 6:30:59 p.m., for a total Data on daylight overdrafts of depository institutions of 601 measurements per operating day. On Decemare shown in the table below. Aggregate daylight ber 8, 1997, the hours of the standard Fedwire operatoverdrafts are negative balances in the reserve or ing day will change to 12:30:00 a.m. eastern time to clearing accounts of all depository institutions hold- 6:30:59 p.m. eastern time. ing accounts at Federal Reserve Banks. Daylight For further information on daylight overdrafts and the Federal Reserve's policies concerning them, see the pamphlet Overview of the Federal Reserve's Pay- Daylight overdrafts of depository institutions at the Federal Reserve Banks and related fees, 1995-96 ments System Risk Policy, which is available from Millions of dollars except as noted any Federal Reserve Bank. Biweekly average daily figures Final date Daylight of t p w e o ri - o w d e ek fee o s v ( e d r o d l r l a a f r t s )1 pe A r v -m er i a n g u e t e Peak AVAILABILITY OF COMMUNITY REINVESTMENT daylight o d v a e y r l d i r g a h f t t 2 overdraft3 ACT INFORMATION ON THE INTERNET The Federal Reserve Board announced on Janu- Oct. 25 1,055,544 43,816 66,718 Nov. 8 1,016,413 42,544 66,950 ary 29, 1997, that information about the Community Nov. 22 1,096,260 44,610 71,287 Reinvestment Act (CRA), including ratings of state Dec. 6 1,137,280 48,724 77,893 Dec. 20 1,276,762 49,075 78,013 member banks examined by the Federal Reserve, is 1996 now available on the Internet. Jan. 3 925,686 45,077 68,744 Jan. 17 1,111,290 48,779 73,570 CRA information on the Board's World Wide Web Jan. 31 1,268,347 49,376 74,481 site (http://www.bog.frb.us) can be accessed by bank Feb. 14 1,102,168 45,145 66,984 Feb. 28 1,193,651 50,983 77,946 name, city and state, bank examination data, and the Mar. 13 1,313,650 50,447 78,075 Mar. 27 1,147,785 46,453 70,779 CRA rating category. Ratings from July 1990 to Apr. 10 1,175,072 46,638 71,269 July 1996 are available, and new rating information Apr. 24 1,154,162 45,728 67,936 May 8 1,069,337 43,983 61,982 will be provided monthly. May 22 1,001,636 42,803 61,924 June 5 1,035,685 46,085 68,523 Also available are a list of banks whose strategic June 19 1,041,401 43,229 64,059 July 3 1,115,497 45,852 64,222 plans have been approved, quarterly examination July 17 956,733 45,074 63,673 schedules, and a list of banks that have received July 31 1,038,354 43,830 63,035 Aug. 14 1,081,207 43,888 65,464 wholesale or limited-purpose designations. Public Aug. 28 1,046,820 43,963 66,613 Sept. 11 1,020,329 46,252 63,783 evaluation portions of examinations and additional Sept. 25 923,219 41,345 58,523 strategic plans will be added later. Oct. 9 1,145,672 46,205 66,540 Oct. 23 917,076 43,649 63,123 Other new items on the Board's site include staff Nov. 6 1,072,705 44,514 67,348 Nov. 20 1,048,428 47,783 71,402 legal interpretations, a link to the Federal Reserve Dec. 4 1,126,741 49,802 68,926 Dec. 18 1,142,388 47,175 68,815 System's National Information Center on banking, and the report submitted to the Congress on funds NOTE. Positive balances in reserve or clearing accounts do not offset overdrafts in any of the calculations described in these notes. Data for the period availability and check fraud. October 27, 1993, to November 23, 1994, were reported in the Federal Reserve Bulletin, vol. 81 (January 1995), p. 31; data for October 26, 1994, to October 11, 1995, appear in Heidi Willmann Richards, "Daylight Overdraft Fees and the Federal Reserve's Payment System Risk Policy," Federal Reserve Bulletin, AVAILABILITY OF REVISED LISTS OF vol. 81 (December 1995), p. 1071. 1. Data are for the two-week period ending on the date shown and are not OVER-THE-COUNTER STOCKS AND OF FOREIGN seasonally adjusted. For each day, the chargeable overdraft is an institution's STOCKS SUBJECT TO MARGIN REGULATIONS average per-minute daylight overdraft for that day less a daily deductible amount. The deductible amount for each institution is 10 percent of its riskbased capital. The rate assessed against the chargeable overdraft is equivalent to The Federal Reserve Board published on January 24, an annual rate of 36 basis points times the fraction of the twenty-four-hour day that Fedwire is open. Two week fees of $25 or less are waived; neither waived 1997, a revised list of over-the-counter (OTC) stocks fees nor daylight overdraft penalty fees are included in these totals. that are subject to its margin regulations. Also pub- 2. The average per-minute daylight overdraft for a given day is the sum of the average per-minute daylight overdrafts for all institutions on that day. An lished was a revised list of foreign equity securities institution's average per-minute overdraft for a given day is the sum of its that meet the margin criteria in Regulation T (Credit overdrafts at the end of each minute in the standard operating day of the Fedwire system divided by the number of such minutes. by Brokers and Dealers). 3. The peak daylight overdraft for a given day is the greatest value reached The lists were effective February 10, 1997, and by the sum of the daylight overdrafts for all institutions at the end of each operating minute of that day. supersede the previous lists that were effective Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 207 November 12, 1996. The next revision of these lists Washington, D.C. in November 1995, is now availis scheduled to be effective May 1997. These lists are able. The conference brought together central bank published for the information of lenders and the staff from the Group of Ten member nations, as well general public. as representatives from other government organiza- The changes that have been made to the revised tions, professionals involved in trading and risk man- OTC List, which now contains 4,816 OTC stocks, are agement, and faculty from universities located on as follows: three continents. Included in the book are nineteen papers and two luncheon addresses covering credit • Two hundred thirty-five stocks have been risk, statistical issues, behavioral models, internal included for the first time, 186 under National Market models, and stylized models of risk, and remarks System (NMS) designation from a panel session on past, present, and future • Forty-eight stocks previously on the list have research agendas on risk measurement. been removed for substantially failing to meet the As financial markets have evolved rapidly, the requirements for continued listing challenge of managing the risks assumed by financial • One hundred three stocks have been removed for intermediaries has grown increasingly complicated, reasons such as listing on a national securities as have the tasks of financial regulators, who must exchange or involvement in an acquisition. evaluate individual firms, and of central bankers, who as lenders of last resort must assess the overall risk to The OTC list is composed of OTC stocks that have the functioning of the financial system. The goal of been determined by the Board to be subject to margin the conference was to foster research on new quesrequirements in Regulations G (Securities Credit by tions that have arisen as a result of these develop- Persons other than Banks, Brokers, or Dealers), T, ments by providing a forum for presentation and and U (Credit by Banks for Purchasing or Carrying discussion that could contribute to the development Margin Stocks). It includes OTC stocks qualifying of a framework for understanding systemic risk and under Board criteria and also includes all OTC stocks its measurement, a field that is at a very early develdesignated as NMS securities. Additional NMS secu- opmental stage. rities may be added in the interim between quarterly Copies of the proceedings volume Risk Measure- Board publications; these securities are immediately ment and Systemic Risk: Proceedings of a Joint marginable upon designation as NMS securities. Central Bank Research Conference at $25.00 each The foreign list is composed of foreign equity are available from Publications Services, Mail Stop securities that are eligible for margin treatment at 127, Board of Governors of the Federal Reserve broker-dealers. Effective July 1, 1996, foreign stocks System, Washington, DC 20551. that have a "ready market" for purposes of the Securities and Exchange Commission's (SEC) net capital rule may be included on the foreign list. The PUBLICATION OF THE DECEMBER 1996 UPDATE SEC effectively treats all stocks included on the OF THE BANK HOLDING COMPANY Financial Times/Standard & Poor's Actuaries World SUPERVISION MANUAL Indices (FT/S&P-AW Indices) as having a "ready market" for capital purposes. The Board is adding The December 1996 update of the Bank Holding forty foreign stocks and deleting thirty-one, based on Company Supervision Manual, Supplement No. 11, changes to the FT/S&P-AW Indices. Some of the is now available. It includes examiner guidance for additions and deletions reflect changes in the name or evaluating the use of credit derivatives by banking trading market of securities already on the FT/ organizations. The guidelines focus on the role of S&P-AW Indices. The revised foreign list now con- these instruments for managing risk, enhancing asset tains 1,974 securities displayed in order of country. yield, reducing credit concentrations, and diversifying overall risk. The material highlights the Federal Reserve's emphasis on the importance of establishing PUBLICATION OF RISK MEASUREMENT AND sound risk-management policies and procedures and SYSTEMIC RISK: PROCEEDINGS OF A JOINT effective internal controls. The treatment of credit CENTRAL BANK RESEARCH CONFERENCE derivatives under the risk-based capital framework is also discussed. The proceedings volume of a joint central bank The update also summarizes Board Orders authoresearch conference on Risk Measurement and Sys- rizing various nonbanking activities such as the foltemic Risk, held at the Federal Reserve Board in lowing: acting as a commodity pool operator of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Federal Reserve Bulletin • March 1997 investment funds, limited underwriting of certain Thomas Jones, Vice Chairman and President of TIAA-CREF "private ownership" industrial development bonds, Beth Kobliner, author of Get a Financial Life and real estate title abstracting. Also, it directs the Tyler Mathisen, Executive Editor of Money magazine examiners' attention to the supplemental rules on Grace Weinstein, author of The Lifetime Book of Money risk-based capital (Regulation Y, appendix E) that Management adjust the risk-based capital guidelines for market risk involved in trading activities. The revision pack- The live program was made available to comage includes a more detailed list of changes to the munity colleges, cooperative extension services, and Manual. private business networks. In addition, the program The Manual and updates (including pricing infor- was provided free of charge to public access, cable, mation) are available from Publications Services, and Public Broadcasting Service stations throughout Mail Stop 127, Board of Governors of the Federal the country. Through these distribution outlets, the Reserve System, Washington, DC 20551. teleseminar had a potential audience of 32 million households. During the course of the program, some of the AVAILABILITY OF A VIDEO ON SAVING AND basic information discussed included tips on how to INVESTING save on a limited budget, some of the best investment choices, how to hedge against inflation, how to avoid The Federal Reserve Board on January 8, 1997, risk, the importance of saving early, and the benefits announced the availability of a video designed to of compounding. assist individuals with their saving and investing. Individuals and organizations interested in pur- This videotape is a byproduct of a live teleseminar chasing a copy of the "It's Your Money" videotape entitled "It's Your Money" that aired on Novem- for $11.95 can call VIDICOPY at 1-800-708-7080 or ber 9, 1996, and was jointly sponsored by the Board write to the following address: and the Securities and Exchange Commission. The hour-long program, designed to give indivi- VIDICOPY Corporation duals from all age groups basic information about 650 Vaqueros Avenue, Suite C saving and investing, featured key federal financial Sunnyvale, California 94086 regulators such as Alice Rivlin, Vice Chair of the Federal Reserve Board, and Arthur Levitt, Chairman of the Securities and Exchange Commission. CHANGE IN BOARD STAFF In addition, a group of experts lent their expertise to this effort. The group of experts included the The Board of Governors announced on January 28, following: 1997, the promotion of Glenn Canner from Adviser Kelvin Boston, author of Smart Money Moves for African to Senior Adviser, in the Division of Research and Americans Statistics. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

209 Legal Developments ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT commercial banking organization in Texas, controlling deposits of $961.5 million, representing less than 1 percent of Orders Issued Under Sections 3 and 4 of the Bank total deposits in commercial banks in the state. Holding Company Act After consummation of the proposal, Norwest would remain the fourth largest commercial banking organization Norwest Corporation in Texas, controlling deposits of $7.2 billion, representing Minneapolis, Minnesota 4.7 percent of total deposits in the state. Norwest also would control 1.4 percent of the total deposits in banks and Order Approving the Acquisition of a Bank Holding savings associations insured by the Federal Deposit Insur- Company ance Corporation. Norwest Corporation, Minneapolis, Minnesota ("Nor- Interstate Analysis west"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has requested Section 3(d) of the BHC Act, as amended by section 101 of the Board's approval under section 3 of the BHC Act the Riegle-Neal Interstate Banking and Branching Effi- (12 U.S.C. § 1842) to acquire all the voting shares of Cen- ciency Act of 1994, allows the Board to approve an applitral Bancorporation, Inc. ("Central Bancorp"), and its cation by a bank holding company to acquire control of a wholly owned subsidiary bank, Central Bank and Trust bank located in a state other than the home state of such Company ("Central Bank"), both of Fort Worth, Texas.1 bank holding company if certain conditions are met.4 For Norwest also has requested the Board's approval under purposes of the BHC Act, the home state of Norwest is section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) Minnesota, and Norwest proposes to acquire a bank in and section 225.23 of the Board's Regulation Y (12 C.F.R. Texas. The conditions for an interstate acquisition enumer- 225.23) to acquire the nonbanking businesses of Central ated in section 3(d) are met in this case.5 In view of the Bancorp and thereby engage in securities brokerage and facts of record, the Board is permitted to approve this mortgage lending activities. proposal under section 3(d) of the BHC Act. Notice of the proposal, aifording interested persons an opportunity to submit comments, has been published in Competitive Considerations accordance with the Board's rules (61 Federal Register 57,432 and 68,266 (1996)). The time for filing comments The BHC Act prohibits the Board from approving an has expired, and the Board has considered the proposal and application under section 3 of the BHC Act if the proposal all comments received in light of the factors set forth in would result in a monopoly, or would substantially lessen sections 3 and 4 of the BHC Act. competition in any relevant banking market, unless the Norwest, with total consolidated assets of $78.4 billion, Board finds that the anticompetitive effects of the proposal operates subsidiary banks in 16 states: Arizona, Colorado, are clearly outweighed in the public interest by the proba- Iowa, Illinois, Indiana, Minnesota, Montana, Nebraska, ble effect of the proposal in meeting the convenience and Nevada, New Mexico, North Dakota, Ohio, South Dakota, needs of the community to be served. Norwest and Central Texas, Wisconsin, and Wyoming.2 Norwest is the 12th Bancorp do not compete directly in any relevant banking largest commercial banking organization in the United market. Based on all the facts of record, the Board con- States, controlling deposits of $46.3 billion, and the fourth largest in Texas, controlling deposits of $6.2 billion in the 4. Pub. L. No. 103-328, 108 Stat. 2338 (1994). A bank holding state.3 Norwest also engages in a number of permissible company's home state is that state in which the operations of the bank nonbanking activities nationwide. Central Bancorp, with holding company's banking subsidiaries were principally conducted total consolidated assets of $1.1 billion, is the 15th largest on July 1, 1996, or the date on which the company became a bank holding company, whichever is later. 5. 12 U.S.C. §§ 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and (B). Norwest is adequately capitalized and adequately managed. Central 1. Central Bancorp directly owns all the voting shares of Central Bancorp's subsidiary bank has been in existence and has continuously Bancorporation of Delaware, Inc., a Delaware corporation, which operated for more than five years, as required under Texas law. In owns all the voting shares of Central Bank. Norwest also has applied addition, on consummation of the proposal, Norwest and its affiliates under section 3 of the BHC Act to acquire this Delaware bank holding would control less than 10 percent of the total amount of deposits of company. insured depository institutions in the United States, and less than 2. Asset data are as of September 30, 1996. 20 percent of the total amount of deposits of insured depository 3. State deposit data and rankings are as of June 30, 1996. institutions in Texas, as required by state law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin • March 1997 eludes that consummation of the proposal would not result includes a review of the records of the relevant depository in any significantly adverse effects on competition or the institutions under the Community Reinvestment Act concentration of banking resources in any relevant banking (12 U.S.C. § 2901 et seq.) ("CRA"). As provided in the market. CRA, the Board evaluates this factor in light of examinations by the primary federal supervisor of the CRA perfor- Other Factors Under the BHC Act mance records of the relevant institutions. An institution's most recent CRA performance evaluation is a particularly The BHC Act also requires the Board to consider the important consideration in the applications process because financial and managerial resources of the companies and it represents a detailed on-site evaluation of the institubanks involved, the convenience and needs of the commu- tion's overall record of performance under the CRA by its nities to be served, and certain other supervisory factors. primary federal supervisor.6 All of Norwest's subsidiary banks have received CRA performance ratings of "satisfactory" or "outstanding" in A. Supervisory Factors their most recent evaluations by their primary federal supervisors. Specifically, Norwest Minnesota received an The Board has carefully considered the financial and man- "outstanding" rating in each of its last three examinations, agerial resources and future prospects of Norwest, Central the most recent of which was conducted in October 1996 Bancorp, and their respective subsidiaries, and other superby the Office of the Comptroller of the Currency ("OCC"), visory factors in light of all the facts of record. The facts the bank's primary federal supervisor. include supervisory reports of examination assessing the The October 1996 examination noted that Norwest Minfinancial and managerial resources of the organizations and nesota offered a full range of credit products to address the confidential financial information provided by Norwest. housing, small business, and consumer credit needs of the Based on these and all the other facts of record, the Board community.7 A substantial majority of Norwest Minnesoconcludes that all the supervisory factors under the BHC ta's loans, when measured either as a percentage of the Act, including financial and managerial resources, weigh in total number of loans or as a percentage of the total dollar favor of approving the proposal. amounts of loans, are within its assessment area. The examination also indicated that Norwest Minnesota, and its B. Convenience and Needs Factor affiliate, Norwest Mortgage, Inc., showed a good distribution of loans within and throughout its delineated commu- The Board also has carefully considered the effect of the nity, including in LMI areas. proposed acquisition on the convenience and needs of the Examiners also found that Norwest Minnesota's commucommunity to be served in light of all the facts of record. nity outreach efforts were effective in attempting to reach As part of that review, the Board has considered comments all parts of the bank's delineated community. According to from the Minnesota Association of Organizations for Rethe October 1996 examination, for example, Norwest Minform Now ("Protestant") contending that Norwest has nesota received ongoing information on community credit engaged in banking practices in the Minneapolis/St. Paul, needs through a process that incorporated surveys, focus Minnesota, area that discriminate against low- and groups, and direct contacts with representatives of LMI moderate-income ("LMI") consumers. Protestant alleges neighborhoods, housing services, and small business, comthat Norwest's lead bank, Norwest Bank Minnesota, N.A., munity development, and government agencies.8 Minneapolis, Minnesota ("Norwest Minnesota"), has unreasonable fees for certain consumer accounts and services that disadvantage LMI consumers or discourage LMI consumers from using the bank's services; that Norwest Min- 6. The Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act (54 Federal Register nesota's Minneapolis/St. Paul branches have banking hours 13,742 and 13,745 (1989)) ("Agency CRA Statement") provides that that discriminate against LMI consumers; and that Nor- a CRA examination is an important and often controlling factor in the west's consumer finance subsidiary, Community Credit consideration of an institution's CRA record and that reports of these Co., Edina, Minnesota ("Community Credit"), engages in examinations will be given great weight in the applications process. 7. Norwest Minnesota designated its community delineation to improper credit practices. include all of Anoka, Washington, Ramsey, and Dakota Counties; a Norwest provides a full range of financial services majority of Scott, Hennepin, and Carver Counties; and a portion of through its bank and nonbank subsidiaries, including com- Isanti County. All the counties are within the Minneapolis/St. Paul mercial and retail banking, insurance agency, venture capi- Metropolitan Statistical Area. Examiners found that the community tal, mortgage, consumer finance, trust, international trade delineation was reasonable and did not arbitrarily exclude any LMI areas. finance, leasing, asset-backed lending, and corporate and 8. Protestant contends that it has been excluded from Norwest investment banking services. Norwest has stated that the Minnesota's Community Marketing Initiative ("CMI"), an annual proposed acquisition would result in these services, some planning process designed to assess the needs of the communities that of which are not available through Central Bancorp, being the bank serves. Protestant also alleges that Norwest Minnesota is offered in the markets currently served by Central Bancorp. unwilling to address community needs that are brought to the bank's attention in the CMI process. The record indicates that meetings took Performance Examinations. The Board has long held place between Norwest Minnesota management and Protestant in that consideration of the convenience and needs factor 1996, and that Norwest Minnesota repeatedly has invited Protestant's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 211 The OCC found that Norwest Minnesota also had devel- Norwest Minnesota, the credit applicant is asked whether oped a sound marketing plan to reach all segments of the he or she would like to be referred to Community Credit. If bank's service community. Norwest Minnesota sponsored the applicant agrees to the referral and meets Community radio advertisements specifically adapted to reach the Credit's lending criteria, Community Credit will approve African-American and Spanish-speaking communities; the loan.11 printed advertisements in American Indian, Hmong, and Protestant has not alleged, nor is there any evidence in Spanish language publications; and printed brochures in the record to indicate, that Norwest denies credit to applilanguages other than English. Many of the bank's branches cants based on any prohibited factor, such as gender or have bilingual staff to meet the needs of non-English race. The October 1996 examination of Norwest Minnespeaking customers. sota found no practices intended to discourage applications The October 1996 examination evaluated Norwest Min- for any type of credit. Examiners also found no evidence of nesota's branch locations and hours, and concluded that the discrimination in the credit decision process. Rather, exambank's offices are readily accessible to all segments of the iners found that Norwest Minnesota solicits applications community. Examiners found that, as of December 1995, from all portions of its community, including LMI neigh- Norwest Minnesota operated 76 branches throughout its borhoods, and that all employees within the lending funcdelineated community, of which 13 (or 17 percent) were in tion receive appropriate and comprehensive training on fair LMI areas. The examination also found that Norwest Min- lending regulations.12 nesota ensured that branch hours met local community Conclusion on the Convenience and Needs Factor. The needs through a regular management review process. In Board has carefully considered the entire record in its addition, the examination stated that Norwest Minnesota review of the convenience and needs factor under section 3 offers 24-hour toll-free telephone services for taking loan of the BHC Act, including all the information provided by applications, making deposits, and conducting limited Protestant. Based on all the facts of record, and for the credit transactions.9 reasons discussed above, the Board concludes that consid- Community Credit. Protestant contends, without substan- erations relating to the convenience and needs factor, intiation, that Norwest Minnesota deliberately denies credit cluding the CRA performance records of Norwest Minneto low-income customers and routinely "steers" low- sota and Norwest's other banking subsidiaries, are income credit applicants to Community Credit, which consistent with approval of the proposal.13 charges higher loan rates than its affiliated bank.10 Norwest denies this allegation and states that, if a loan is denied by 11. Norwest indicates that Community Credit may make loans to consumers denied credit by Community Credit's affiliated bank bemembers to participate in the CMI process. The OCC's October 1996 cause Community Credit is a consumer finance company in the examination concluded that the Norwest Minnesota CMI planning business of lending to higher risk borrowers. process provided an adequate framework not only for determining 12. Protestant also alleges that Norwest and Community Credit community needs but also for developing the bank's response to those engage in other improper credit practices, including requiring borrowneeds. Examiners noted that the CMI plan incorporates information ers to purchase credit life insurance in connection with loans; engagsuch as demographic data, ascertainment efforts, marketing strategies, ing in improper loan collection techniques; and failing to report timely and lending goals; is prepared for each branch to respond to special loan payments of borrowers to credit bureaus. Norwest denies engaglocal needs; and is monitored quarterly, and updated and approved ing in any illegal or improper practices and specifically denies that regularly by Norwest Minnesota's board of directors. Community Credit requires its borrowers to purchase credit insurance. 9. Protestant also contends that Norwest Minnesota charges exces- The Board has carefully considered Protestant's comments in light of sive fees for checks returned due to insufficient funds and for checks all the facts of record, including reports of examination and other the bank pays against a customer's overdraft, and assesses excessive supervisory information from the Minnesota Department of Comfees for money orders to discourage LMI customers from using the merce, the state agency that regularly examines Community Credit for bank's money order services. The Board believes that these comments compliance with state and federal consumer protection laws. Based on provide an incomplete picture of Norwest Minnesota's products and all the facts, the Board concludes that Protestant's allegations do not services. As previously noted by the Board, Norwest Minnesota offers warrant denial of the proposal. special accounts with no minimum deposit and no fees, and offers 13. Protestant has requested that the Board hold a public hearing on overdraft protection to all checking account customers based on the convenience and needs effects of the proposal. Section 3(b) of the underwriting criteria similar to that used for other unsecured exten- BHC Act does not require the Board to hold a public meeting or sions of credit. See Norwest Corporation, 82 Federal Reserve Bulletin hearing on an application unless the appropriate supervisory authority 667, 672 n.23 (1996). for the bank to be acquired makes a timely written recommendation of Although the Board has recognized that banks help serve the needs denial of the application. No supervisory agency has recommended of their communities by offering basic services at nominal or no denial in this case. charge, the CRA does not impose any limitation on the fees or In addition, under the Board's Rules of Procedure, the Board, in its surcharges that can be charged for services. The record indicates that discretion, may hold a public hearing or meeting on an application to Norwest Minnesota offers a full range of banking services in its clarify factual issues relating to the application and to provide an delineated community, and there is no evidence in the October 1996 opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and examination of Norwest Minnesota, or in the record of this proposal, 262.25(d). Protestant has had an ample opportunity to present its that the fees charged by Norwest Minnesota are discriminatory or views, and Protestant has submitted substantial written comments that based on any factor that would be prohibited by law. have been carefully considered by the Board. Protestant has not 10. Protestant indicates that Norwest has not disclosed statistics on demonstrated why its written submissions do not adequately present the number of referrals made by Norwest Minnesota to Community its allegations and what, if any, additional matters would be addressed Credit or the bank's policy for making referrals to its consumer at a hearing or meeting. For these reasons, and based on all the facts of finance affiliate. record, the Board has determined that a public hearing or meeting is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 Federal Reserve Bulletin • March 1997 Nonbanking Activities terms and conditions set forth in Regulation Y, including those in sections 225.7 and 225.23(b) (12 C.F.R. 225.7 and Norwest also has filed notices, pursuant to section 4(c)(8) 225.23(b)), and to the Board's authority to require such of the BHC Act, to acquire the nonbanking businesses of modification or termination of the activities of a bank Central Bancorp and thereby to engage in providing full- holding company or any of its subsidiaries as the Board service securities brokerage and mortgage lending ser- finds necessary to ensure compliance with, and to prevent vices. The Board has determined that these activities are evasion of, the provisions of the BHC Act and the Board's closely related to banking,14 and Norwest has committed to regulations and orders thereunder. For purposes of this conduct the nonbanking activities in accordance with Reg- transaction, the commitments and conditions referred to ulation Y. above shall be deemed to be conditions imposed in writing In order to approve the proposal under section 4(c)(8) of by the Board in connection with its findings and decision, the BHC Act, the Board also must determine that the and, as such, may be enforced in proceedings under appliproposed activities are a proper incident to banking, that is, cable law. that the proposal "can reasonably be expected to produce The acquisition of Central Bancorp shall not be consumbenefits to the public, such as greater convenience, in- mated before the fifteenth calendar day following the effeccreased competition, or gains in efficiency that outweigh tive date of this order, and this proposal shall not be possible adverse effects, such as undue concentration of consummated later than three months after the effective resources, decreased or unfair competition, conflicts of date of this order, unless such period is extended for good interests, or unsound banking practices." As part of its cause by the Board or by the Federal Reserve Bank of evaluation of these factors, the Board considers the finan- Minneapolis acting pursuant to delegated authority. cial condition and managerial resources of the notificant By order of the Board of Governors, effective Januand its subsidiaries, including the companies to be ac- ary 13, 1997. quired, and the effect of the proposed transaction on those resources.15 As noted above, based on all the facts of Voting for this action: Vice Chair Rivlin and Governors Kelley, record, the Board has concluded that financial and manage- Lindsey, Phillips, Yellen, and Meyer. Absent and not voting: rial considerations are consistent with approval of these Chairman Greenspan. notices. The Board also has concluded that the proposal JENNIFER J. JOHNSON would not have a significantly adverse effect on competi- Deputy Secretary of the Board tion in any relevant market. In addition, the Board expects that the acquisition would provide added convenience to Central Bancorp's customers and the public. Norwest notes that consumers in the ORDERS ISSUED UNDER INTERNATIONAL BANKING ACT markets currently served by Central Bank would have Industrial and Commercial Bank of China access to a variety of securities brokerage and mortgage Beijing, People's Republic of China servicing and origination services through Norwest that are not available through Central Bancorp. Accordingly, based Order Approving Establishment of a Representative on all the facts of record, the Board has determined that the Office balance of public benefits is favorable under the proper incident to banking standard of section 4(c)(8) of the BHC Industrial and Commercial Bank of China ("Bank"), Act. Beijing, People's Republic of China, a foreign bank within the meaning of the International Banking Act Conclusion ("IBA"), has applied under section 10(a) of the IBA (12 U.S.C. § 3107(a)) to establish a representative office in Based on the foregoing, and in light of all the facts of New York, New York. The Foreign Bank Supervision record, the Board has determined that the application and Enhancement Act of 1991, which amended the IBA, pronotice should be, and hereby are, approved. Approval of vides that a foreign bank must obtain the approval of the this application and notice is specifically conditioned on Board to establish a representative office in the United compliance by Norwest with all the commitments made in States. connection with this proposal and with the conditions Notice of the application, affording interested persons an stated or referred to in this order. The Board's determinaopportunity to comment, has been published in a newspation on the nonbanking activities also is subject to all the per of general circulation in New York (The New York Times, October 9, 1996). The time for filing comments has expired, and the Board has considered the application and not required or warranted to clarify the factual record in the proposal or otherwise warranted in this case. Accordingly, Protestant's request all comments received. for a hearing on the proposal is denied. As of June 30, 1996, Bank had total assets of approxi- 14. See 12 C.F.R. 225.25(b)(1) and (b)(15). mately $400 billion. Bank is the largest of four specialized 15. See 12 C.F.R. 225.24; see also The Fuji Bank, Limited, banks in the People's Republic of China and is wholly 75 Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155 (1987). owned by the Chinese government. Bank operates more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 213 than 32,000 offices and a number of subsidiaries in China. with applicable laws and has an operating record that Outside China, Bank operates bank subsidiaries in Kazakh- would be consistent with the establishment of a representastan and Hong Kong, branches in Singapore and Hong tive office in the United States. Finally, all foreign banks, Kong, and representative offices in Seoul, Korea; Tokyo, whether operating through branches, agencies or represen- Japan; and London, England. tative offices, will be required to provide adequate assur- Until recently, one of Bank's primary activities was ances of access to information on the operations of the receiving funds from China's federal, regional, and local bank and its affiliates necessary to determine compliance authorities and lending such funds on a medium- and with U.S. laws. long-term basis to state-owned enterprises to support urban The Board has considered the following information industrial development. In connection with ongoing efforts with respect to home country supervision of Bank. The to modernize China's financial system, however, Bank People's Bank of China (the "PBOC") is the licensing, now engages in more traditional commercial banking activ- regulatory, and supervisory authority for banks and all ities. other financial institutions in China and, as such, is the The activities of Bank's representative office would in- home country supervisor of Bank. Although regulation of clude general marketing or promotional activities, research the specialized banks by the PBOC historically has focused and consulting, and acting as liaison between Bank's cus- on the banks' compliance with state economic and finantomers and correspondent and investment banks. In addi- cial goals, in the last several years the Chinese authorities tion, the representative office would engage in certain loan have taken steps to develop a more market-oriented bank solicitation and servicing activities. All decisions regarding supervisory program placing greater emphasis on prudensuch loans would be made by Bank's head office and the tial standards. Under the new supervisory regime currently representative office would not act as payment or collection being implemented, the PBOC establishes capital, liquidity agent in connection with its loan servicing activities. and asset quality requirements, regulates the investments In acting on an application to establish a representative of banks in other companies, establishes internal auditing office, the IBA and Regulation K provide that the Board standards for Chinese banks, and monitors Chinese banks shall take into account whether the foreign bank engages for adherence to Chinese laws and regulations. The PBOC, directly in the business of banking outside of the United which has authorized Bank to establish the proposed repre- States, has furnished to the Board the information it needs sentative office, supervises the foreign and domestic activito assess the application adequately, is subject to compre- ties of Bank and its subsidiaries. hensive supervision or regulation on a consolidated basis The PBOC monitors the operations of Bank through by its home country supervisor, and has provided adequate on-site examinations and the review of periodic reports assurances of access to information on the operations of from Bank. The PBOC conducts both regular and limited the bank and its affiliates to determine compliance with ad hoc on-site examinations. On- site examinations gener- U.S. laws. (12 U.S.C. § 3107(a); 12 C.F.R. 211.24(d)). The ally focus on compliance with financial regulations, as well Board also may take into account additional standards as as Bank's internal controls, asset quality, capital, liquidity, set forth in the IBA (12 U.S.C. § 3105(d)(3)-(4)> and Reg- profitability, and execution of economic and financial poliulation K (12 C.F.R. 211.24(c)). cies. Bank is required to submit various periodic financial The Board previously has stated that the standards that and regulatory reports to the PBOC, including balance apply to the establishment of a branch or agency need not sheets, income statements, analyses of classified loans and in every case apply to the establishment of a representative external debt, reports on foreign exchange risk, and reports office, because representative offices do not engage in a on deposits, borrowings, guarantees, and securities and banking business and cannot take deposits or make loans.1 investments. Bank also is required to publish its financial In evaluating an application to establish a representative statements and audit report annually. The PBOC's examioffice under the IBA and Regulation K, the Board will take nations and general supervisory oversight of Bank are into account the standards that apply to the establishment carried out by the head office and various of the more than of branches and agencies, subject generally to the follow- 2,500 local offices of the PBOC. ing considerations. With respect to supervision by home Bank's internal audit department conducts biannual and country authorities, a foreign bank that proposes to estab- annual internal audits of Bank, and ad hoc audits of particlish a representative office should be subject to a significant ular areas of Bank's operations at least four times each degree of supervision by its home country supervisor.2 A year. Each major department or activity of Bank is subject foreign bank's financial and managerial resources will be to one or more internal audits annually. Internal audits reviewed to determine whether its financial condition and generally review Bank's internal guidelines, operating and performance demonstrate that it is capable of complying financial plans, budgets, and financial statements, as well as compliance with governmental and Bank's own policies. Bank's foreign branches and subsidiaries are required 1. See 58 Federal Register 6348, 6351 (1993). to submit periodic reports to Bank's head office and are 2. See Citizens National Bank, 79 Federal Reserve Bulletin 805 audited on-site annually. The results of Bank's internal (1993). See also Promstroybank of Russia, 82 Federal Reserve Bulleaudits are provided to the PBOC. Bank proposes to monitin 599 (1996) (addressing standards applicable to representative tor and control the activities of the representative office offices with limited activities). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 Federal Reserve Bulletin • March 1997 through a similar combination of periodic reports and require termination of any of Bank's direct or indirect annual internal audits, as well as through meetings between activities in the United States. Approval of the application staff of the representative office and Bank's head office. is also specifically conditioned on compliance by Bank Based on all the facts of record, the Board concludes that with the commitments made in connection with the applifactors relating to the supervision of Bank by its home cation and with the conditions in this order.3 The commitcountry supervisor are consistent with approval of the ments and conditions referred to above are conditions proposed representative office. The Board also has deter- imposed in writing by the Board in connection with its mined that, for purposes of the IBA and Regulation K, decision, and may be enforced in proceedings under Bank engages directly in the business of banking outside of 12 U.S.C. § 1818 against Bank and its affiliates. the United States through its operations in China. Bank has By order of the Board of Governors, effective Januprovided the Board with the information necessary to as- ary 27, 1997. sess the application through submissions that address relevant issues. Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and The Board also has taken into account the additional Governors Kelley, Lindsey, Phillips, Yellen, and Meyer. standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. § 3105(d)(3),(4); 12C.F.R. JENNIFER J. JOHNSON Deputy Secretary of the Board 211.24(c)(2)). As noted above, the PBOC has authorized Bank to establish the proposed representative office. Taking into consideration Bank's record of operations in Swiss Bank Corporation its home country, its overall financial resources, and its Basle, Switzerland standing with its home country supervisors, the Board also Order Approving Establishment of a Branch has determined that financial and managerial factors are consistent with approval of the proposed representative Swiss Bank Corporation ("Bank"), Basle, Switzerland, a office. Bank appears to have the experience and capacity to foreign bank within the meaning of the International Banksupport the proposed representative office and also has ing Act ("IBA"), has applied under section 7(d) of the IBA established controls and procedures for the proposed repre- (12 U.S.C. § 3105(d)) to establish a state-licensed branch sentative office to ensure compliance with U.S. law. in Stamford, Connecticut. The Foreign Bank Supervision Finally, with respect to access to information on Bank's Enhancement Act of 1991 ("FBSEA"), which amended operations, the Board has reviewed the relevant provisions the IBA, provides that a foreign bank must obtain the of law in China and has communicated with appropriate approval of the Board to establish a branch in the United government authorities regarding access to information. States. Bank has committed to make available to the Board such Notice of the application, affording interested persons an information on the operations of Bank and any of its opportunity to submit comments, has been published in a affiliates that the Board deems necessary to determine and newspaper of general circulation in Stamford, Connecticut enforce compliance with the IBA, the Bank Holding Com- (The Advocate, October 25, 1996). The time for filing pany Act of 1956, as amended, and other applicable federal comments has expired, and the Board has considered all law. To the extent that the provision of such information to comments received. the Board may be prohibited or impeded by law, Bank has Bank, with total consolidated assets of approximately committed to cooperate with the Board to obtain any $247.5 billion,1 is the third largest bank in Switzerland, necessary consents or waivers that might be required from providing commercial and investment banking services third parties in connection with disclosure of such informaworldwide.2 The shares of Bank are publicly traded and tion. In addition, subject to certain conditions, the PBOC widely held.3 may share information on Bank's operations with other In the United States, Bank operates branches in supervisors, including the Board. In light of the commit- New York, New York; Chicago, Illinois; and San Franments provided by Bank and other facts of record, and subject to the condition described below, the Board concludes that Bank has provided adequate assurances of access to any necessary information the Board may re- 3. The Board's authority to approve the establishment of the proposed representative office parallels the continuing authority of the quest. State of New York to license offices of a foreign bank. The Board's On the basis of all the facts of record, and subject to the approval of this application does not supplant the authority of the commitments made by Bank, as well as the terms and State of New York and its agent, the New York State Banking conditions set forth in this order, the Board has determined Department (Department), to license the proposed representative office of Bank in accordance with any terms or conditions that the that Bank's application to establish a representative office Department may impose. should be, and hereby is, approved. Should any restrictions on access to information on the operations or activities of 1. Asset data are as of June 30, 1996. Bank or any of its affiliates subsequently interfere with the 2. Countries in which Bank provides banking services include Switzerland, the United Kingdom, Japan, Germany, Hong Kong, and Board's ability to determine the compliance by Bank or its Singapore. affiliates with applicable federal statutes, the Board may 3. The largest shareholder of Bank owns 5 percent of Bank's shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 215 cisco, California; an agency in Miami, Florida; and repre- (12 U.S.C. § 3105(d)(2); 12 C.F.R. 211.24). The Board sentative offices in Los Angeles, California; and Houston, may also take into account additional standards as set forth Texas. Bank also engages in a full range of securities in the IBA and Regulation K (12 U.S.C. § 3105(d)(3)-(4); activities permissible for bank holding companies through 12 C.F.R. 211.24(c)). its section 20 subsidiary, SBC Warburg Inc. (formerly SBC As noted above, Bank engages directly in the business of Capital Markets Inc.), New York, New York, and several banking outside of the United States. Bank also has proother nonbanking subsidiaries.4 vided the Board with the information necessary to assess Bank's primary purpose for establishing the proposed the application through submissions that address the relebranch in Connecticut is to relocate and consolidate certain vant issues. of the existing operations of its New York branches, as Regulation K provides that a foreign bank will be conwell as certain of the operations of its nonbanking subsid- sidered to be subject to comprehensive supervision or iaries. The Connecticut branch would serve as Bank's regulation on a consolidated basis if the Board determines North American regional headquarters and would take over that the bank is supervised and regulated in such a manner the trading operations currently conducted in one of Bank's that its home country supervisor receives sufficient infor- New York branches. The proposed Connecticut branch mation on the foreign bank's worldwide operations, includwould engage in all of the activities currently conducted by ing the relationship of the foreign bank to any affiliate, to the New York branches except private banking. assess the overall financial condition of the foreign bank Bank's current home state under the IB A and Regula- and its compliance with law and regulation (12 C.F.R. tion K is California. On approval of the proposed branch 211.24(c)(1)).6 by the Board and the State of Connecticut Department of With respect to the issue of supervision by home country Banking, Bank would change its home state to Connecti- authorities, the Board has considered the following inforcut.5 mation. Bank is supervised and regulated by the Swiss The Swiss Federal Banking Commission has no objec- Federal Banking Commission ("SFBC"). The SFBC is tion to the establishment of the proposed branch. responsible for the prudential supervision and regulation of In order to approve an application by a foreign bank to credit institutions. Bank also provided additional informaestablish a branch in the United States, the IBA and Regu- tion regarding the supervision and regulation of Bank's lation K require the Board to determine that the foreign activities by entities other than the SFBC. The Board bank applicant engages directly in the business of banking previously has determined that Bank is subject to compreoutside of the United States, and has furnished to the Board hensive supervision and regulation on a consolidated basis the information it needs to assess the application ade- by its home country supervisors.7 quately. The Board also must determine that the foreign The Board also has taken into account the additional bank is subject to comprehensive supervision or regulation standards set forth in section 7 of the IBA (see 12 U.S.C. on a consolidated basis by its home country supervisor § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). In this regard, the SFBC has approved the establishment of the proposed branch. 4. Bank's other U.S. nonbanking subsidiaries include SBC Warburg Switzerland is a signatory to the Basle risk-based capital Futures (formerly SBC Derivatives Inc.), Chicago, Illinois; SBC Brinstandards, and Swiss risk-based capital standards meet son (formerly SBC Portfolio Management International Inc.), and those established by the Basle Capital Accord ("Accord"). SBC Resources Management Inc., each of New York, New York; a commercial paper subsidiary; and subsidiaries incorporated to hold Bank's capital is in excess of the minimum levels required property acquired in satisfaction of debts previously contracted. 5. Generally, a foreign bank may not establish a branch outside its home state except in conformity with section 5 of the IBA. Under Regulation K, which implements section 5, a foreign bank may 6. In assessing this standard, the Board considers, among other change its home state once, provided domestic branches established factors, the extent to which the home country supervisors: and investments in banks acquired in reliance on its original home (i) Ensure that the bank has adequate procedures for monitoring state selection are conformed to those that would have been permissi- and controlling its activities worldwide; ble had the new home state been selected as its home state originally. (ii) Obtain information on the condition of the bank and its See 12 C.F.R. 211.22(b). Under state law, Bank must designate Con- subsidiaries and offices through regular examination reports, necticut as its home state to conduct the business of banking in audit reports, or otherwise; Connecticut. Conn. Gen. Stat. § 36a-425 (Supp. 1996). (iii) Obtain information on the dealings with and relationship As noted, Bank's current home state is California. In order to between the bank and its affiliates, both foreign and domestic; establish the proposed branch in Connecticut consistent with state and (iv) Receive from the bank financial reports that are consolidated federal law, Bank must change its home state to Connecticut. Bank on a worldwide basis, or comparable information that permits has not previously changed its home state. analysis of the bank's financial condition on a worldwide consol- Upon the change of Bank's home state to Connecticut, Bank must idated basis; and limit the deposits accepted by its California office to only such (v) Evaluate prudential standards, such as capital adequacy and deposits as are permissible for a corporation organized under sec- risk asset exposure, on a worldwide basis. tion 25A of the Federal Reserve Act (an "Edge corporation") These are indicia of comprehensive, consolidated supervision. No (12 U.S.C. 611 et seq.). The California branch would thus become a single factor is essential, and other elements may inform the Board's limited branch, which a foreign bank may operate outside its home determination. state consistent with the IBA and Regulation K. Bank may also retain 7. Swiss Bank Corporation, 82 Federal Reserve Bulletin 690 (1996). and operate its branches in New York and Chicago, which are grand- See also Coutts & Co., AG, 79 Federal Reserve Bulletin 636 (1993); fathered under section 5(b) of the IBA (12 U.S.C. 3103(b)). Union Bank of Switzerland, 82 Federal Reserve Bulletin 370 (1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 Federal Reserve Bulletin • March 1997 by the Accord and is considered equivalent to capital that conditions set forth in this order, the Board has determined would be required of a U.S. banking organization. Manage- that Bank's application to establish a state-licensed branch rial and other financial resources of Bank also are consis- should be, and hereby is, approved. Should any restrictions tent with approval of the proposed branch, and Bank ap- on access to information on the operations or activities of pears to have the experience and capacity to support the Bank or its affiliates subsequently interfere with the proposed branch. Bank has established controls and proce- Board's ability to obtain information to determine and dures for the proposed branch to ensure compliance with enforce compliance by Bank or its affiliates with applicable U.S. law, as well as controls and procedures for its world- federal statutes, the Board may require termination of any wide operations. of Bank's direct or indirect activities in the United States. Finally, the Board has reviewed the restrictions on dis- Approval of the application is also specifically conditioned closure in relevant jurisdictions in which Bank operates on Bank's compliance with the commitments made in and has communicated with relevant government authori- connection with the application, and with the conditions in ties about access to information. Bank has committed to this order.8 The commitments and conditions referred to make available to the Board such information on the oper- above are conditions imposed in writing by the Board in ations of Bank and any affiliate of Bank that the Board connection with its decision, and may be enforced in deems necessary to determine and enforce compliance with proceedings under 12 U.S.C. § 1818 or 12 U.S.C. § 1847 the IBA, the Bank Holding Company Act of 1956, as against Bank, its offices, and its affiliates. amended, and other applicable Federal law. To the extent By order of the Board of Governors, effective Janthat the provision of such information is prohibited or uary 21, 1997. impeded by law, Bank has committed to cooperate with the Board to obtain any necessary consents or waivers that Voting for this action: Vice Chair Rivlin and Governors Kelley, might be required from third parties in connection with Lindsey, Phillips, Yellen, and Meyer. Absent and not voting: Chairman Greenspan. disclosure of such information. In addition, subject to certain conditions, the SFBC may share information on WILLIAM W. WILES Bank's operations with other supervisors, including the Secretary of the Board Board. In light of these commitments and other facts of record, and subject to the condition described below, the Board concludes that Bank has provided adequate assur- 8. The Board's authority to approve the establishment of the proances of access to any necessary information the Board posed branch parallels the continuing authority of the State of Connecticut Department of Banking ("Department") to license offices of may request. a foreign bank. The Board's approval of the application does not On the basis of all the facts of record, and subject to the supplant the authority of the State of Connecticut, and its agent, the commitments made by Bank, as well as the terms and Department, to license the proposed branch of Bank in accordance with any terms or conditions that the Department may impose. APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 4 Applicant(s) Bank(s) Effective Date Bank of Boston Corporation, To acquire, through NYCE Corporation, January 31, 1997 Boston, Massachusetts Woodcliff Lake, New Jersey Fleet Financial Group, Inc., Card Alert Services, Inc., Boston, Massachusetts Arlington, Virginia 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 217 Section 4—Continued Applicant(s) Bank(s) 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 Compass Bancshares, Inc., Horizon Bancorp, Inc., January 30, 1997 Birmingham, Alabama Austin, Texas Compass Banks of Texas, Inc., Horizon Bank & Trust, SSB, Birmingham, Alabama Austin, Texas Compass Bancorporation of Texas, Inc. Wilmington, Delaware By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Applicant(s) Bank(s) Reserve Bank Effective Date Ameribanc, Inc., Mark Twain Bancshares, Inc. St. Louis January 22, 1997 St. Louis, Missouri St. Louis, Missouri Ameribanc, Inc., Regional Bancshares, Inc., St. Louis January 15, 1997 St. Louis, Missouri Alton, Illinois Antelope Bancshares, Inc. Bank of Elgin, Kansas City January 8, 1997 Elgin, Nebraska Elgin, Nebraska Associated Banc-Corp, Centra Financial, Inc., Chicago January 14, 1997 Green Bay, Wisconsin West Allis, Wisconsin Central Bank of West Allis, West Allis, Wisconsin Central Investments, Inc., West Allis, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 Federal Reserve Bulletin • March 1997 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Barker Brothers, Inc., Middletown Bancorp, Inc., Chicago January 3, 1997 Springfield, Illinois Middletown, Illinois Latham Bancorp, Inc., Latham, Illinois State Bank of Middletown, Middletown, Illinois State Bank of Latham, Latham, Illinois Beaman Bancshares, Inc., Producers Savings Bank, Chicago January 3, 1997 Beaman, Iowa Green Mountain, Iowa Bedford Loan and Deposit Bancorp, Bedford Loan and Deposit Bank, St. Louis December 27, 1996 Inc., Bedford, Kentucky Bedford, Kentucky Charter Oak Community Bank The Savings Bank of Rockville, Boston January 14, 1997 Corp., Vernon, Connecticut Vernon, Connecticut The Colonial BancGroup, Inc., D/W Bankshares, Inc., Atlanta January 10, 1997 Montgomery, Alabama Dalton, Georgia Dalton/Whitfield Bank & Trust, Dalton, Georgia Commerce Bancorp, Inc., Independence Bancorp, Inc., Philadelphia January 6, 1997 Cherry Hill, New Jersey Ramsey, New Jersey Community State Bancshares, Inc., Community State Bank, St. Louis December 26, 1996 Shelbina, Missouri Shelbina, Missouri East Coast Bank Corporation East Coast Bank Corporation, Atlanta December 27, 1996 Employee Stock Ownership Plan Ormond Beach, Florida Trust, Ormond Beach, Florida First & Farmers Bancshares, Inc., Cumberland Bancorp, Inc., Cleveland January 3, 1997 Somerset, Kentucky Burkesville, Kentucky First Baird Bancshares, Inc., The Oklahoma National Bank of Dallas January 8, 1997 Baird, Texas Duncan, First Baird Bancshares of Delaware, Duncan, Oklahoma Inc., Dover, Delaware Weatherford Bancshares, Inc., Weatherford, Texas First Bank Holding Company, First Bank, Atlanta December 30, 1996 Tallahassee, Florida Tallahassee, Florida First Georgia Community Corp., First Georgia Community Bank, Atlanta December 24, 1996 Jackson, Georgia Jackson, Georgia First Live Oak Bancshares, Inc., First Live Oak Delaware Bancshares, Dallas January 14, 1997 Three Rivers, Texas Inc., Dover, Delaware First State Bank, Three Rivers, Texas First Live Oak Delaware First State Bank, Dallas January 14, 1997 Bancshares, Inc., Three Rivers, Texas Dover, Delaware First Pecos Bancshares, Inc., First National Bank of Fort Stockton, Dallas January 8, 1997 Midland, Texas Fort Stockton, Texas First Security Bancorp, First Community Bank, N.A., St. Louis January 8, 1997 Searcy, Arkansas Conway, Arkansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 219 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date First Team Resources Corporation, First National Bank, Kansas City January 2, 1997 Derby, Kansas Derby, Kansas Front Range Bancshares, Inc., Front Range Bank, Kansas City January 2, 1997 Lakewood, Colorado Lakewood, Colorado Gateway Delaware Holding Gateway National Bank, Dallas December 30, 1996 Company, Inc., Dallas, Texas Wilmington, Delaware Gateway Holding Company, Inc., Gateway Delaware Holding Company, Dallas Dallas, Texas Inc., December 30, 1996 Wilmington, Delaware Gateway National Bank, Dallas, Texas Halpain Financial, Ltd., Gateway Holding Company, Inc., Dallas Dallas, Texas Dallas, Texas December 30, 1996 Gateway Delaware Holding Company, Inc., Wilmington, Delaware Gateway National Bank, Dallas, Texas Hickory Hill Bancshares, Inc., Hickory Hill Delaware Financial Dallas December 27, 1996 Avinger, Texas Corporation, Dover, Delaware The First State Bank, Avinger, Texas Hickory Hill Delaware Financial The First State Bank, Dallas December 27, 1996 Corporation, Avinger, Texas Dover, Delaware IFB Holdings, Inc., Investors Federal Bank, N.A., Kansas City January 10, 1997 Chillicothe, Missouri Chillicothe, Missouri International Bancorporation, Carlton County Bancorporation, Inc., Minneapolis January 9, 1997 Golden Valley, Minnesota Cloquet, Minnesota Jefferson County Bancshares, Inc., Antelope Bancshares, Inc., Kansas City January 8, 1997 Daykin, Nebraska Elgin, Nebraska Keene Bancorp, Inc. 401 (K) Keene Bancorp, Inc., Dallas January 16, 1997 Employee Stock Ownership Plan Keene, Texas and Trust, Keene, Texas Mercantile Bancorporation Inc., Mark Twain Bancshares, Inc., St. Louis January 22, 1997 St. Louis, Missouri St. Louis, Missouri Mercantile Bancorporation Inc., Regional Bancshares, Inc., St. Louis January 15, 1997 St. Louis, Missouri Alton, Illinois Bank of Alton, Alton, Illinois Metro Bank Financial Services, Inc. Metro Bank of Dade County, Atlanta January 3, 1997 Coral Gables, Florida Coral Gables, Florida Mound City Financial Services, Inc. Mound City Bank, Platteville, Chicago January 3, 1997 Platteville, Wisconsin Wisconsin, Illinois Otto Bremer Foundation/Bremer First American Bank, N.A., Minneapolis December 27, 1996 Financial Corporation, Moorhead, Minnesota St. Paul, Minnesota Peoples Bancorp, Inc., Peoples Bank of West Georgia, Atlanta December 30, 1996 Carrollton, Georgia Carrollton, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 Federal Reserve Bulletin • March 1997 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Perry Banking Company, The Citizens Bank of Perry, Atlanta December 30, 1996 Perry, Florida Perry, Florida Pinnacle Bancshares, Inc., Pinnacle Bank, Atlanta January 17, 1997 Jasper, Alabama Jasper, Alabama Pinnacle Bancshares, Inc., Pinnacle Bank, St. Louis January 10, 1997 Little Rock, Arkansas Little Rock, Arkansas Regions Financial Corporation, Allied Bankshares, Inc., Atlanta January 3, 1997 Birmingham, Alabama Thomson, Georgia Allied Bank of Georgia, Thomson, Georgia Bank of Morgan County, Madison, Georgia The Bank of Millen, Millen, Georgia Rotan Bancshares, Inc., First National Bank, Dallas January 14, 1997 Rotan, Texas Rotan, Texas Rotan Delaware Bancshares, Inc. First National Bank, Dallas January 14, 1997 Dover, Delaware Rotan, Texas SW&KM Holdings, LLC, SW&KM Limited Partnership, Dallas December 27, 1996 Del Rio, Texas Del Rio, Texas Westex Bancorp, Inc., Del Rio, Texas Westex Bancorp of Delaware, Inc., Wilmington, Delaware First State Bank, Brackettville, Texas Del Rio Bank & Trust Company, Del Rio, Texas Sutton County National Bank, Sonora, Texas SW&KM Holdings, LLC, Westex Bancorp, Inc., Dallas December 27, 1996 Del Rio, Texas Del Rio, Texas SW&KM Limited Partnership, Westex Bancorp of Delaware, Inc. Del Rio, Texas Wilmington, Delaware First State Bank, Brackettville, Texas Del Rio Bank & Trust Company, Del Rio, Texas Sutton County National Bank, Sonora, Texas SW&KM Limited Partnership, Westex Bancorp, Inc., Dallas December 27, 1996 Del Rio, Texas Del Rio, Texas Westex Bancorp of Delaware, Inc. Wilmington, Delaware Del Rio Bank & Trust Company, Del Rio, Texas Sutton County National Bank, Sonora, Texas Union Planters Corporation, Capital Bancorporation, Inc., St. Louis January 3, 1997 Memphis, Tennessee Memphis, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 221 Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Bayerische Vereinsbank AG, VB Risk Management Products Inc., New York January 17, 1997 Munich, Germany New York, New York Bremen Bancorp, Inc., National Equity, Inc., St. Louis January 10, 1997 St. Louis, Missouri St. Charles, Missouri City Holding Company, Prime Financial Corporation, Richmond December 27, 1996 Charleston, West Virginia Costa Mesa, California CoBancorp Inc., Jefferson Savings Bank, Cleveland December 26, 1996 Elyria, Ohio West Jefferson, Ohio Regions Financial Corporation, Florida First Bancorp, Inc., Atlanta January 10, 1997 Birmingham, Alabama Panama City, Florida Florida FirstBank, Panama City, Florida Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date AmeriMark Financial Corporation, Duco Bancshares, Inc., Chicago January 15, 1997 Oak Brook, Illinois Villa Park, Illinois Bank of Illinois in DuPage, Villa Park, Illinois Banill Corporation, Villa Park, Illinois 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 Farmers Bank of Maryland, First Virginia Bank-Central Maryland, Richmond January 22, 1997 Annapolis, Maryland Bel Air, Maryland Pullman Bank and Trust Company, Pullman Bank of Commerce and Chicago January 9, 1997 Chicago, Illinois Industry, Chicago, Illinois PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the December 24, 1996, petitioners moved for an emergency Federal Reserve Banks in which the Board of Governors is not stay of the Board's order. The motion for a stay was denied named a party. by the 10th Circuit on January 3, 1997; on January 6, 1997, petitioners' application for emergency stay was denied by the Supreme Court. The New Mexico Alliance v. Board of Governors, No. 96- Artis v. Greenspan, No. 1:96CV02619 (D.D.C., filed Novem- 9552 (10th Cir., filed December 24, 1996). Petition for ber 19, 1996). Employment discrimination action. On Dereview of a Board order dated December 16, 1996, approvcember 20, 1996, the Board moved to dismiss the action. ing the acquisition by NationsBank Corporation and NB Holdings Corporation, both of Charlotte, North Carolina, of First Baird Bancshares, Inc. v. Board of Governors, No. Boatmen's Bancshares, Inc., St. Louis, Missouri. Also on 96-1426 (D.C. Cir., filed November 18, 1996). Petition for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 Federal Reserve Bulletin • March 1997 review of Board order dated November 6, 1996, approving denied by the Court of Appeals. Oral argument is scheduled applications of First Commercial Corporation, Little Rock, for February 4, 1997. Arkansas, Arvest Bank Group, Inc., Bentonville, Arkansas, Kuntz v. Board of Governors, No. 96-1079 (D.C. Cir., filed and TRH Bank Group, Inc., Norman, Oklahoma, to acquire March 7, 1996). Petition for review of a Board order dated all the shares of The Oklahoma National Bank of Duncan, February 7, 1996, approving applications by The Fifth Duncan, Oklahoma. On November 20, 1996, the Court Third Bank, Cincinnati, Ohio, and The Firth Third Bank of denied petitioners' motion for a stay. On January 3, 1997, Columbus, Columbus, Ohio, to acquire certain assets and the parties filed a joint motion to dismiss. assume certain liabilities of 25 branches of NBD Bank, Snyder v. Board of Governors, No. 96-1403 (D.C. Cir., filed Columbus, Ohio. Petitioner has moved to consolidate the October 23, 1996). Petition for review of Board order dated case with Kuntz v. Board of Governors, No. 95-1495. On September 11, 1996, prohibiting John K. Snyder and April 8, 1996, the Board filed a motion to dismiss the Donald E. Hedrick from further participation in the banking action. industry. On November 21, 1996, the Board moved to Henderson v. Board of Governors, No. 96-1054 (D.C. Cir., dismiss the petition. filed February 16, 1996). Petition for review of a Board American Bankers Insurance Group, Inc. v. Board of Gover- order dated January 17, 1996, approving the merger of First nors, No. 96-CV-2383-EGS (D.D.C., filed October 16, Citizens BancShares, Inc., Raleigh, North Carolina, with 1996). Action seeking declaratory and injunctive relief in- Allied Bank Capital, Inc., Sanford, North Carolina. Petitionvalidating a new regulation issued by the Board under the ers' motion for a stay was denied on March 7, 1996. Truth in Lending Act relating to treatment of fees for debt Following briefing on the merits of the petition, petitioners cancellation agreements. On October 18, 1996, the district filed a motion for voluntary dismissal on December 19, court denied plaintiffs' motion for a temporary restraining 1996. order. On January 17, 1997, the parties filed cross-motions Research Triangle Institute v. Board of Governors, No. for summary judgment. 1:96CV00102 (M.D.N.C., filed February 12, 1996). Contract dispute. On May 3, 1996, the Board filed a motion to Clifford v. Board of Governors, No. 96-1342 (D.C. Cir., filed dismiss the action. September 17, 1996). Petition for review of Board order dated August 21, 1996, denying petitioners' motion to Inner City Press!Community on the Move v. Board of Goverdismiss enforcement action against them. On November 4, nors, No. 96-4008 (2nd Cir., filed January 19, 1996). Peti- 1996, the Board filed a motion to dismiss the petition. tion for review of a Board order dated January 5, 1996, approving the applications and notices by Chemical Bank- Artis v. Greenspan, No. 96-CV-02105 (D. D.C., filed Septeming Corporation to merge with The Chase Manhattan Corber 11, 1996). Class complaint alleging race discrimination poration, both of New York, New York, and by Chemical in employment. On December 20, 1996, the Board moved Bank to merge with The Chase Manhattan Bank, N.A., both to dismiss the action. of New York, New York. Petitioners' motion for an emer- Leuthe v. Board of Governors, No. 96-5725 (E.D. Pa., filed gency stay of the transaction was denied following oral August 16, 1996). Action against the Board and other argument on March 26, 1996. The Board's brief on the Federal banking agencies challenging the constitutionality merits was filed July 8, 1996. The case has been consoliof the Office of Financial Institution Adjudication. On Janu- dated for oral argument and decision with Lee v. Board of ary 24, 1997, the agencies filed a motion to dismiss the Governors, No. 95^-134 (2d Cir.); oral argument was held action. on January 13, 1997. Long v. Board of Governors, No. 96-9526 (10th Cir., filed Kuntz v. Board of Governors, No. 95-1495 (D.C. Cir., filed July 31, 1996). Petition for review of Board order dated September 21, 1995). Petition for review of Board order July 2, 1996, assessing a civil money penalty and cease and dated August 23, 1995, approving the applications of The desist order for violations of the Bank Holding Company Fifth Third Bank, Cincinnati, Ohio, to acquire certain assets Act. The Board's brief in opposition to the petition was and assume certain liabilities of 12 branches of PNC Bank, filed November 27, 1996. Ohio, N.A., Cincinnati, Ohio, and to establish certain Board of Governors v. Interamericas Investments, Ltd., No. branches. The Board's motion to dismiss was filed on 96-7108 (D.C. Cir., filed June 14, 1996). Appeal of district October 26, 1995. court ruling granting, in part, the Board's application to Lee v. Board of Governors, No. 95^-134 (2nd Cir., filed enforce an adminstrative investigatory subpoena for docu- August 22, 1995). Petition for review of Board orders dated ments and testimony. On November 15, 1996, the court July 24, 1995, approving certain steps of a corporate reorgadismissed the action on appellants' motion. nization of U.S. Trust Corporation, New York, New York, Interamericas Investments, Ltd. v. Board of Governors, No. and the acquisition of U.S. Trust by Chase Manhattan 96-60326 (5th Cir., filed May 8, 1996). Petition for review Corporation, New York, New York. On September 12, of order imposing civil money penalties and cease and 1995, the court denied petitioners' motion for an emergency desist order in enforcement case. Petitioners' brief was filed stay of the Board's orders. The Board's brief was filed on on July 26, 1996, and the Board's brief was filed on April 16, 1996. Oral argument, consolidated with Inner City September 27, 1996. On August 20, petitioners' motion for Press!Community on the Move v. Board of Governors, took a stay of the Board's orders pending judicial review was place on January 13, 1997. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 223 Beckman v. Greenspan, No. 95-35473 (9th Cir., filed May 4, Order of Assessment of a Civil Money Penalty against 1995). Appeal of dismissal of action against Board and Mark Yale, a former employee and institution-affiliated others seeking damages for alleged violations of constitu- party of Bankers Trust New York Corporation and BT tional and common law rights. The appellants' brief was Securities Corporation, New York, New York. filed on June 23, 1995; the Board's brief was filed on July 12, 1995. Money Station, Inc. v. Board of Governors, No. 95-1182 (D.C. Cir., filed March 30, 1995). Petition for review of a TERMINATION OF ENFORCEMENT ACTIONS Board order dated March 1, 1995, approving notices by Bank One Corporation, Columbus, Ohio; CoreStates Finan- The Federal Reserve Board announced on January 13, cial Corp., Philadelphia, Pennsylvania; PNC Bank Corp., 1997, the termination of the following enforcement Pittsburgh, Pennsylvania; and KeyCorp, Cleveland, Ohio, actions: to acquire certain data processing assets of National City Corporation, Cleveland, Ohio, through a joint venture subsidiary. On April 23, 1996, the court vacated the Board's United Mizrahi Bank, Ltd. order. On July 31, 1996, the full court granted the Board's Tel Aviv, Israel suggestion for rehearing en banc, and vacated the April 23 and its Los Angeles Branch panel decision. On December 19, 1996, the parties filed a stipulation of voluntary dismissal. Cease and Desist Order dated September 30, 1993— In re Subpoena Duces Tecum, Misc. No. 95-06 (D.D.C., filed terminated December 16, 1996. January 6, 1995). Action to enforce subpoena seeking predecisional supervisory documents sought in connection with an action by Bank of New England Corporation's trustee in bankruptcy against the Federal Deposit Insurance Corpora- Union Texas Bancorporation, Inc. tion. The Board filed its opposition on January 20, 1995. Minneapolis, Minnesota Oral argument on the motion was held July 14, 1995. Board of Governors v. Pharaon, No. 91-CIV-6250 (S.D. New York, filed September 17, 1991). Action to freeze Written Agreement dated June 12, 1992—terminated assets of individual pending administrative adjudication of December 24, 1996. civil money penalty assessment by the Board. On September 17, 1991, the court issued an order temporarily restraining the transfer or disposition of the individual's assets. American Express Bank International New York, New York FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD OF GOVERNORS Cease and Desist Order dated September 29, 1993— terminated January 7, 1997. Roberto A.F. Roberts Miami, Florida The Federal Reserve Board announced on January 6, 1997, WRITTEN AGREEMENTS APPROVED BY FEDERAL the issuance of a combined Order to Cease and Desist and RESERVE BANKS Order of Assessment of a Civil Money Penalty against Roberto A.F. Roberts, a former officer and institution- The Pan American Bank affiliated party of IBJ Schroder International Bank, Miami, Miami, Florida Florida. Mark Yale The Federal Reserve Board announced on January 13, New York, New York 1997, the execution of a Written Agreement by and among The Pan American Bank, Miami, Florida, the Federal The Federal Reserve Board announced on January 3, 1997, Reserve Bank of Atlanta, and the Department of Banking the issuance of a combined Order to Cease and Desist and and Finance, Division of Banking, State of Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 Membership of the Board of Governors of the Federal Reserve System, 1913-97 APPOINTIVE MEMBERS 1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin .Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg .. .New York .Aug. 10, 1914 Term expired Aug. 9, 1918. Frederic A. Delano .Chicago .Aug. 10, 1914 Resigned July 21, 1918. W.P.G. Harding .Atlanta .Aug. 10, 1914 Term expired Aug. 9, 1922. Adolph C. Miller ... .San Francisco .Aug. 10, 1914 Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss .New York .Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah .. .Chicago .Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt .New York .... June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills .Cleveland .Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell .Minneapolis .. .May 12, 1921 Resigned May 12, 1923. Milo D. Campbell .Chicago .Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger .Cleveland .May 1, 1923 Resigned Sept. 15, 1927. George R. James .St. Louis .May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.4 Edward H. Cunningham .Chicago .May 14, 1923 Died Nov. 28, 1930. Roy A. Young .Minneapolis .. .Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer .New York .Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee .Kansas City .. .May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black .Atlanta .May 19, 1933 Resigned Aug. 15, 1934. M.S. Szymczak .Chicago June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas .Kansas City .. June 14, 1933 Served until Feb. 10, 1936.3 Marriner S. Eccles .San Francisco .Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick .New York .... .Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee .Cleveland .Feb. 3, 1936 Served until Apr. 4, 1946.3 Ronald Ransom .Atlanta .Feb. 3, 1936 Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison .Dallas .Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis .Richmond .... June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper .New York .... .Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans .Richmond .... .Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. .St. Louis .Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton .Boston .Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe .... .Philadelphia .. .Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton .Atlanta .Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell .Minneapolis .. .Sept. 1, 1950 Resigned June 30, 1952. Wm. McC. Martin, Jr. . .New York .... .April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr. .San Francisco .Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson .Kansas City .. .Feb. 18, 1952 Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston ... .Philadelphia .. .Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller .Minneapolis .. .Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson ... .Dallas .Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr. .Atlanta .Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell .Chicago .Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane .Richmond .... .Nov. 29, 1963 Served until Mar. 8, 1974.3 Sherman J. Maisel .San Francisco .Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer .Philadelphia .. .Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill .Dallas .May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns .New York .... Jan. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan .St. Louis Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher .San Francisco June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland .Kansas City .. June 11, 1973 Resigned May 15, 1976. Henry C. Wallich .Boston .Mar. 8, 1974 Resigned Dec. 15, 1986. Philip E. Coldwell .Dallas .Oct. 29, 1974 Served through Feb. 29, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

225 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership 2 Philip C. Jackson, Jr. Atlanta July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee Richmond Jan. 5, 1976 Served until Feb. 7, 1986.3 Stephen S. Gardner .. Philadelphia Feb. 13, 1976 Died Nov. 19, 1978. David M. Lilly Minneapolis June 1, 1976 Resigned Feb. 24, 1978. G. William Miller ... San Francisco Mar. 8, 1978 Resigned Aug. 6, 1979. Nancy H. Teeters Chicago Sept. 18, 1978 Served through June 27, 1984. Emmett J. Rice New York June 20, 1979 Resigned Dec. 31, 1986. Frederick H. Schultz Atlanta July 27, 1979 Served through Feb. 11, 1982. Paul A. Volcker Philadelphia Aug. 6, 1979 Resigned August 11, 1987. Lyle E. Gramley Kansas City May 28, 1980 Resigned Sept. 1, 1985. Preston Martin San Francisco Mar. 31, 1982 Resigned April 30, 1986. Martha R. Seger Chicago July 2, 1984 Resigned March 11, 1991. Wayne D. Angell Kansas City Feb. 7, 1986 Served through Feb. 9, 1994. Manuel H. Johnson . Richmond Feb. 7, 1986 Resigned August 3, 1990. H. Robert Heller San Francisco Aug. 19, 1986 Resigned July 31, 1989. Edward W. Kelley, Jr. Dallas May 26, 1987 Reappointed in 1990. Alan Greenspan New York Aug. 11, 1987 Reappointed in 1992. John P. LaWare Boston Aug. 15, 1988 Resigned April 30, 1995. David W. Mullins, Jr. St. Louis May 21, 1990 Resigned Feb. 14, 1994. Lawrence B. Lindsey Richmond Nov. 26, 1991 Resigned Feb. 5, 1997. Susan M. Phillips Chicago Dec. 2, 1991 Alan S. Blinder Philadelphia June 27, 1994 Term expired Jan. 31, 1996. Janet L. Yellen San Francisco Aug. 12, 1994 Resigned Feb. 17, 1997. Laurence H. Meyer . St. Louis June 24, 1996 Alice M. Rivlin Philadelphia June 25, 1996 Chairmen 4 Vice Chairmen4 Charles S. Hamlin Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano Aug. 10, 1914-Aug. 9, 1916 W.P.G. Harding Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer Sept. 16, 1930-May 10, 1933 J.J. Thomas Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles Nov. 15, 1934-Jan. 31, 19485 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe Apr. 15, 1948-Mar. 31, 1951 J.L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell May 1, 1973-Feb. 13, 1976 Arthur F. Burns Feb. 1, 1970-Jan. 31, 1978 Stephen S. Gardner Feb. 13, 1976-Nov. 19, 1978 G. William Miller Mar. 8, 1978-Aug. 6, 1979 Frederick H. Schultz July 27, 1979-Feb. 11, 1982 Paul A. Volcker Aug. 6, 1979-Aug. 11, 1987 Preston Martin Mar. 31, 1982-Apr. 30, 1986 Alan Greenspan Aug. 11, 1987—6 Manuel H. Johnson Aug. 4, 1986-Aug. 3, 1990 David W. Mullins, Jr. July 24, 1991-Feb. 14, 1994 Alan S. Blinder June 27, 1994-Jan. 31, 1996 Alice M. Rivlin June 25, 1996- EX-OFFICIO MEMBERS 1 Secretaries of the Treasury Comptrollers of the Currency W.G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams Feb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes May 1, 1923-Dec. 17, 1924 Andrew W. Mellon Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J.W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J.F.T. O'Connor May 11, 1933-Feb. 1, 1936 Henry Morgenthau Jr. Jan. 1, 1934-Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act, the Federal ive members in office on the date of that act should continue to serve until Feb. 1, Reserve Board was composed of seven members, including five appointive 1936, or until their successors were appointed and had qualified; and that members, the Secretary of the Treasury, who was ex-officio chairman of the thereafter the terms of members should be fourteen years and that the Board, and the Comptroller of the Currency. The original term of office was ten designation of Chairman and Vice Chairman of the Board should be for a term of years, and the five original appointive members had terms of two, four, six, four years. eight, and ten years respectively. In 1922 the number of appointive members was 2. Date after words "Resigned" and "Retired" denotes final day of service. increased to six, and in 1933 the term of office was increased to twelve years. 3. Successor took office on this date. The Banking Act of 1935, approved Aug. 23, 1935, changed the name of the 4. Chairman and Vice Chairman were designated Governor and Vice Federal Reserve Board to the Board of Governors of the Federal Reserve System Governor before Aug. 23, 1935. and provided that the Board should be composed of seven appointive members; 5. Served as Chairman Pro Tempore from February 3, 1948, to April 15, that the Secretary of the Treasury and the Comptroller of the Currency should 1948. continue to serve as members until Feb. 1, 1936; that the appoint- 6. Served as Chairman Pro Tempore from March 3, 1996, to June 20, 1996. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

57 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance A25 Federal fiscal and financing operations DOMESTIC FINANCIAL STATISTICS A26 U.S. budget receipts and outlays All Federal debt subject to statutory limitation Money Stock and Bank Credit 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 A31 New security issues—Tax-exempt state and local Policy Instruments 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 A3 3 Domestic finance companies—Assets and Federal Reserve Banks liabilities, and consumer, real estate, and business credit A10 Condition and Federal Reserve note statements All Maturity distribution of loan and security Real Estate holdings A34 Mortgage markets A35 Mortgage debt outstanding Monetary and Credit Aggregates A12 Aggregate reserves of depository institutions Consumer Credit and monetary base A13 Money stock, liquid assets, and debt measures A3 6 Total outstanding A15 Deposit interest rates and amounts outstanding— A36 Terms commercial and BIF-insured banks Flow of Funds Commercial Banking Institutions— A37 Funds raised in U.S. credit markets Assets and Liabilities A39 Summary of financial transactions A40 Summary of credit market debt outstanding A16 All commercial banks A41 Summary of financial assets and liabilities A17 Domestically chartered commercial banks A18 Large domestically chartered commercial banks A19 Small domestically chartered commercial banks DOMESTIC NONFINANCIAL STATISTICS A20 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

58 Federal Reserve Bulletin • March 1997 DOMESTIC NONFINANCIAL STATISTICS- A56 Banks' own claims on unaffiliated foreigners CONTINUED A57 Claims on foreign countries— Combined domestic offices and foreign branches Selected Measures—Continued Reported by Nonbanking Business A48 Gross domestic product and income Enterprises in the United States A49 Personal income and saving A58 Liabilities to unaffiliated foreigners INTERNATIONAL STATISTICS A59 Claims on unaffiliated foreigners Summary Statistics Securities Holdings and Transactions A50 U.S. international transactions—Summary A60 Foreign transactions in securities A51 U.S. foreign trade A61 Marketable U.S. Treasury bonds and A51 U.S. reserve assets notes—Foreign transactions A51 Foreign official assets held at Federal Reserve Banks Interest and Exchange Rates A52 Selected U.S. liabilities to foreign official A61 Discount rates of foreign central banks institutions A61 Foreign short-term interest rates A62 Foreign exchange rates Reported by Banks in the United States A52 Liabilities to and claims on foreigners A63 GUIDE TO STATISTICAL RELEASES AND A53 Liabilities to foreigners SPECIAL TABLES A55 Banks' own claims on foreigners A56 Banks' own and domestic customers' claims on foreigners A64 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GNMA Government National Mortgage Association n.a. Not available GDP Gross domestic product n.e.c. Not elsewhere classified HUD Department of Housing and Urban P Preliminary Development r Revised (Notation appears on column heading IMF International Monetary Fund when about half of the figures in that column IO Interest only are changed.) IPCs Individuals, partnerships, and corporations * Amounts insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is millions) MSA Metropolitan statistical area 0 Calculated to be zero NOW Negotiable order of withdrawal Cell not applicable OCD Other checkable deposit ATS Automatic transfer service OPEC Organization of Petroleum Exporting Countries BIF Bank insurance fund OTS Office of Thrift Supervision CD Certificate of deposit PO Principal only CMO Collateralized mortgage obligation REIT Real estate investment trust FFB Federal Financing Bank REMIC Real estate mortgage investment conduit FHA Federal Housing Administration RP Repurchase agreement FHLBB Federal Home Loan Bank Board RTC Resolution Trust Corporation FHLMC Federal Home Loan Mortgage Corporation SAIF Savings Association Insurance Fund FmHA Farmers Home Administration SCO Securitized credit obligation FNMA Federal National Mortgage Association SDR Special drawing right FSLIC Federal Savings and Loan Insurance Corporation SIC Standard Industrial Classification G-7 Group of Seven VA Department of Veterans Affairs GENERAL INFORMATION In many of the tables, components do not sum to totals because of include not fully guaranteed issues) as well as direct obligarounding. tions of the Treasury. "State and local government" also in- Minus signs are used to indicate (1) a decrease, (2) a negative cludes municipalities, special districts, and other political figure, or (3) an outflow. subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • March 1997 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1996 1996 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q1 Q2 Q3 Q4 Aug. Sept. Oct.r Nov.r Dec. Reserves of depository institutions2 1 Total -7.9 -6.4 -16.4 -16.9 -20.9 -21.1 -28.4 -6.2 7.1 2 Required -8.5 -5.7 -16.6 -18.3 -19.0 -23.3 -27.9 -7.4 -2.3 3 Nonborrowed -6.5 -7.6 -17.6 -16.0 -20.3 -22.0 -26.7 -4.5 8.5 4 Monetary base3 1.5 2.2 5.9 5.4 6.3 4.5 3.5 5.8 11.1 Concepts of money, liquid assets, and debt4 5 Ml -2.7 -.7 -7.1r -8.4 -9.9 — 8.6r -16.7 .1 1.2 6 M2 5.7 3.7r 2.7 4.9 3.8 3.4r 3.0 7.8 8.8 7 M3 7.1 5.6r 4.4 8.1 4.6r 7.3r 8.9 7.3 12.1 8 L 5.0 5.7 4.8 n.a. 6.4r 8.5r 4.3 8.6 n.a. 9 Debt 5.0 5.7r 5.1r n.a. 4.6r 3.8 5.1 5.4 n.a. Nontransaction components 10 In M25 9.4 5.7 6.9 10.4 9.6r 8.3 11.0 10.9 11.8 11 In M3 only6 12.9r 12.8r 10.8r 20.3 7.5r 22. r 31.0 5.3 24.3 Time and savings deposits Commercial banks 12 Savings, including MMDAs 22.6 12.7 11.5 16.3 17.5 10.4r 17.3 18.7 16.6 13 Small time7 2.5 -2.9 3.7 6.5 6.2 6.2 6.0 8.2 4.9 14 Large time8'9 8.r 18.7r 16.2r 29.3 6.7r 18.5r 48.4 15.4 38.2 Thrift institutions 15 Savings, including MMDAs -.3 8.1 -,lr .3 -4.9 — ,7r 2.9 -2.0 3.6 16 Small time7 -2.4r -3.5r -,9r 4.1 3.8 3.4 7.1 3.4 -2.0 17 Large time8 6.4 -3.0 8.3r 12.0 7.9r 20.3r 13.8 9.1 -1.5 Money market mutual funds 18 Retail 13.3 9.4 13.6 16.9 14.9 17.4 14.5 14.8 26.9 19 Institution-only 27.9 8.7 18.6 16.9 20.4 25.7 7.3 13.2 30.1 Repurchase agreements and Eurodollars 20 Repurchase agreements10 3.4 16.2r -4.2 2.8 -5.6 19.4 13.6 -12.2 —23.4 21 Eurodollars10 18.6r 7.4 2.3r 35.3 1.2r 34.7r 73.4 -21.6 65.8 Debt components4 22 Federal 3.0 4.7 3.8 n.a. 4.5 1.0 3.8 4.2 n.a. 23 Nonfederal 5.8 6.0r 5.5 n.a. 4.7r 4.9r 5.6 5.8 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 1996 Oct. Nov. Dec. Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 426,254 430,854r 440,346 429,842 432,168 430,817' 437,534 434,632 440,474 441,514 U.S. government securities2 2 Bought outright—System account 386,942 392,296 392,674 393,581 393,796 394,121 392,160 393,145 392,786 392,654 3 Held under repurchase agreements 3,042 3,219 11,332 429 3,982 2,588 9,280 6,506 11,764 11,908 Federal agency obligations 4 Bought outright 2,289 2,245 2,228 2,247 2,247 2,242 2,237 2,233 2,225 2,225 5 Held under repurchase agreements 1,434 967 1,031 228 686 659 1,724 1,394 492 955 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 50 77 114 8 63 221 299 4 85 118 8 Seasonal credit 212 105 67 109 106 96 75 66 68 70 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 704 789 1,241 1,260 799 462 739 690 1,288 1,331 11 Other Federal Reserve assets 31,580 31,155 31,659 31,981 30,489 30,427' 31,020 30,593 31,766 32,253 12 Gold stock 11,049 11,049 11,048 11,049 11,049 11,049 11,049 11,048 11,048 11,048 13 Special drawing rights certificate account 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 14 Treasury currency outstanding 24,832r 24,891r 24,952 24,880' 24,894' 24,908' 24,922 24,936 24,950 24,964 ABSORBING RESERVE FUNDS 15 Currency in circulation 432,766r 436,978r 444,548 436,568' 437,196' 438,120' 441,573 441,896 442,455 446,273 16 Treasury cash holdings 287 276 257 277 275 272 271 264 257 249 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,064 4,939 5,749 4,905 5,039 4,996 4,509 4,926 7,169 5,694 18 Foreign 174 169 178 166 173 170 170 169 175 201 19 Service-related balances and adjustments . . 6,655 6,896 6,975 6,794 6,774 6,936 7,110 6,881 7,122 6,919 20 Other 373 352 335 359 364 343 309 339 353 300 21 Other Federal Reserve liabilities and capital . 13,883 14,263 14,412 14,152 14,457 14,381 14,176 14,149 14,653 14,570 22 Reserve balances with Federal Reserve Banks; 12,651 12,638r 13,610 12,268 13,550 11,273' 15,104 11,711 14,006 13,040 End-of-month figures Wednesday figures Oct. Nov. Dec. Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec.25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 430,602 437,242r 451,346 432,548 437,679 435,172' 440,763 434,077 452,762 445,640 U.S. government securities2 2 Bought outright—System account 385,087 392,662 390,907 393,765 393,430 392,767 390,802 393,307 392,587 395,381 3 Held under repurchase agreements 7,830 7,548 19,971 0 8,475 5,988 13,401 5,919 22,621 11,908 Federal agency obligations 4 Bought outright 2,247 2,237 2,225 2,247 2,247 2,237 2,237 2,225 2,225 2,225 5 Held under repurchase agreements 2,970 2,763 1,612 0 1,725 2,323 618 1,523 1,154 955 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 6 111 57 17 372 2 1,721 0 178 36 8 Seasonal credit 157 76 29 112 99 90 67 70 70 69 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 312 951 4,303 4,295 1,158 979 660 164 1,976 2,728 11 Other Federal Reserve assets 31,994 30,894r 32,243 32,113 30,173 30,785' 31,257 30,869 31,951 32,338 12 Gold stock 11,049 11,049 11,048 11,049 11,049 11,049 11,049 11,048 11,049 11,048 13 Special drawing rights certificate account 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 14 Treasury currency outstanding 24,866r 24,922' 24,978 24,880' 24,894r 24,908' 24,922 24,936 24,950 24,964 ABSORBING RESERVE FUNDS 15 Currency in circulation 433,268' 440,943' 450,660 438,024' 437,772' 440,983' 442,632 442,733 444,463 448,586 16 Treasury cash holdings 281 273 249 276 272 273 264 259 249 249 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,897 4,857 7,742 4,512 5,119 4,688 4,790 4,896 9,989 6,479 18 Foreign 176 170 167 169 183 164 166 168 163 214 19 Service-related balances and adjustments .. 7,004 7,110 6,887 6,794 6,774 6,936 7,110 6,881 7,122 6,919 20 Other 363 292 892 346 366 299 323 351 358 265 21 Other Federal Reserve liabilities and capital . 14,066 14,219 13,829 13,964 14,212 14,165 13,884 14,235 14,464 14,676 22 Reserve balances with Federal Reserve Banks3 15,181 15,067' 16,663 14,111 18,644 13,339' 17,282 10,256 21,669 13,983 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 3. Excludes required clearing balances and adjustments to compensate for float. 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • March 1997 1.12 RESERVES AND BORROWINGS Depository Institutions' Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1994 1995 1996 1996 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov.r Dec. 1 Reserve balances with Reserve Banks2 24,658 20,440 13,398 16,590 15,392 14.761 13,688 12,800 12,895 13,398 2 Total vault cash3 40,378 42,088 44,426 41,979 42,773 42,517 43,639 42,913 42,737 44,426 3 Applied vault cash4 36,682 37,460 37,847 37,095 37,451 36,880 37,309 36,749 36,862 37,847 4 Surplus vault cash5 3,696 4,628 6,579 4,883 5,322 5,637 6,330 6,164 5,875 6,579 5 Total reserves6 61,340 57,900 51,245 53,686 52,843 51,642 50,997 49,550 49,756 51,245 6 Required reserves 60,172 56,622 49,823 52,535 51,778 50,681 49,959 48,556 48,721 49,823 7 Excess reserve balances at Reserve Banks7 1,168 1,278 1,422 1,150 1,065 961 1,038 994 1,035 1,422 8 Total borrowings at Reserve Banks8 209 257 155 386 368 334 368 287 214 155 9 Seasonal borrowings 100 40 68 192 284 309 306 212 109 68 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 1997 Aug. 28 Sept. 11 Sept. 25 Oct. 9 Oct. 23 Nov. 6 Nov. 20 Dec. 4' Dec. 18 Jan. 1 1 Reserve balances with Reserve Banks" 14,613 14,623 13,324 12,653 13,141 12,371 12,914 13,182 12,837 14.070 2 Total vault cash3 41,604 43,007 44,028 43,941 42,196 43,013 42,497 42,908 44,684 44,615 3 Applied vault cash4 36,114 37,083 37,505 37.258 36,267 37,021 36,768 36,898 37,913 38,068 4 Surplus vault cash5 5,490 5,924 6,523 6,683 5,929 5,992 5,729 6,010 6,771 6,547 5 Total reserves6 50,726 51,705 50,829 49,911 49,408 49,392 49,682 50,080 50,750 52,137 6 Required reserves 49,835 50,741 49.745 48,839 48.470 48,388 48,678 48,983 49,338 50,605 7 Excess reserve balances at Reserve Banks7 891 964 1,084 1,072 938 1.004 1,004 1,097 1,411 1.532 8 Total borrowings at Reserve Banks8 349 394 335 402 286 161 143 346 112 143 9 Seasonal borrowings 328 308 317 274 205 154 108 86 67 64 10 Extended credit' 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float and (line 3). includes other off-balance-sheet "as-of' adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Total "lagged" vault cash held by depository institutions subject to reserve 8. Also includes adjustment credit. requirements. Dates refer to the maintenance periods during which the vault cash may be used 9. Consists of borrowing at the discount window under the terms and conditions estabto satisfy reserve requirements. The maintenance period for weekly reporters ends sixteen lished for the extended credit program to help depository institutions deal with sustained days after the lagged computation period during which the vault cash is held. Before Nov. 25, liquidity pressures. Because there is not the same need to repay such borrowing promptly as 1992, the maintenance period ended thirty days after the lagged computation period. with traditional short-term adjustment credit, the money market effect of extended credit is 4. All vault cash held during the lagged computation period by "bound" institutions (that similar to that of nonborrowed reserves. is, those whose required reserves exceed their vault cash) plus the amount of vault cash applied during the maintenance period by "nonbound" institutions (that is, those whose vault cash exceeds their required reserves) to satisfy current reserve requirements. 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1996, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 83,017 85,282 86.493 81,974 90,123 94,694 84,450 83,209 79,414 2 For all other maturities 15,458r 14,924r 14,781r 15,718r 14,828 13,478 14,638 15,099 14,794 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 18,374 21,104 18.616 17,421 16,887 19,083 17.451 17,772 17,621 4 For all other maturities 18,235r 19,114r 19,114r 19,153r 20,795 17,905 17,920 17,490 17,396 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 18,184 18,228 20.466 18,998 13,966 14,381 11,892 12,129 11,918 6 For all other maturities 34,934 34,302 32.556 32,243 33,433 32,227 33,089 34,380 33,095 All other customers 7 For one day or under continuing contract 41,867 41,395 43,135 41,956 39,635 40,910 42,461 42,664 40,870 8 For all other maturities 14,024 13,878 13,525 13.461 15,309 14,086 13,594 13,609 14,510 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 70,222 69,818 72,489 70,607 78,599 78,244 72,768 71,436 69,786 10 To all other specified customers2 24,108 23,756 25,456 22,362 23,836 23,103 25,224 25,127 22,237 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, foreign banks Data in this table also appear in the Board's H.5 (507) weekly statistical release. For and official institutions, and U.S. government agencies, ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 2/ O 7/ n 9 7 Effective date Previous rate 2/ O 7/ n 9 7 Effective date Previous rate 2/ O 7/ n 9 7 Eifective date Previous rate Boston 5.00 2/1/96 5.25 5.30 1/30/97 5.35 5.80 1/30/97 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 City 2/1/96 Dallas 1/31/96 San Francisco 5.00 1/31/96 5.25 5.30 1/30/97 5.35 5.80 1/30/97 5.85 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank (or F.R. Bank Range (or Effective date level)—All of Effective date level)—All of Effective date level)—All F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks In effect Dec. 31, 1977 1981—Nov. 2 13-14 13 1988—Aug. 9 .... 6-6.5 6.5 6 13 13 11 6.5 6.5 1978—Jan. 9 6-6.5 6.5 Dec. 4 12 12 20 6.5 6.5 1989—Feb. 24 ... . 6.5-7 7 May 11 6.5-7 7 1982—July 20 11.5-12 11.5 27 .... 7 7 12 7 7 23 11.5 11.5 July 3 7-7.25 7.25 Aug. 2 11-11.5 11 1990—Dec. 19 6.5 6.5 10 7.25 7.25 3 11 11 Aug. 21 7.75 7.75 16 10.5 10.5 1991—Feb. 1 . . . . 6-6.5 6 Sept. 22 8 8 27 10-10.5 10 6 6 Oct. 16 8-8.5 8.5 30 10 10 5.5-6 5.5 20 8.5 8.5 Oct. 12 9.5-10 9.5 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 1979—July 20 10 10 Dec. 1 2 4 6 8.5 9 - 9 9 9 Nov. 61 ...... .. 4 4 .5 .5 -5 4 4 . . 5 5 Aug. 17 10-10.5 10.5 15 8.5-9 8.5 Dec. 20 ... . 3.5-4.5 3.5 20 10.5 10.5 17 8.5 8.5 24 ... . 3.5 3.5 Sept. 19 10.5-11 11 Oct. 21 8 11 1 - 1 1 2 1 1 1 2 1984—Apr. 1 9 3 8.5 9 - 9 9 9 1992—July 2 1 .. .. . .. . 3- 3 3 .5 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 18 3.5 3.5 19 13 13 Aug. 16 ... . 3.5^1 4 May 29 12-13 13 1985—May 20 7.5-8 7.5 18 ... . 4 4 30 12 12 24 7.5 7.5 Nov. 15 4-4.75 4.75 June 13 11-12 111 1 17 ... . 4.75 4.75 16 11 1986—Mar. 7 7-7.5 7 July 2 2 8 9 10 1 - 0 1 1 1 1 0 0 Apr. 2 1 1 0 6.5 7 - 7 7 6 .5 1995—Feb. 9 1 . . . . . . . . 4.7 5 5 . - 2 5 5 . 25 5 5 . . 2 2 5 5 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 Feb. 7, 1997 5.00 5.00 14 1987—Sept. 4 5.5-6 11 6 1. Available on a short-term basis to help depository institutions meet temporary needs for of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a funds that cannot be met through reasonable alternative sources. The highest rate established flexible rate somewhat above rates charged on market sources of funds is charged. The rate for loans to depository institutions may be charged on adjustment credit loans of unusual size ordinarily is reestablished on the first business day of each two-week reserve maintenance that result from a major operating problem at the borrower's facility. period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis 2. Available to help relatively small depository institutions meet regular seasonal needs for points. funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 4. For earlier data, see the following publications of the Board of Governors: Banking and that cannot be met through special industry lenders. The discount rate on seasonal credit takes Monetary Statistics, 1914-1941, and 1941-1970\ and the Annual Statistical Digest, 1970into account rates charged by market sources of funds and ordinarily is reestablished on the 1979. first business day of each two-week reserve maintenance period; however, it is never less than In 1980 and 198J, 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 • March 1997 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of deposits Effective date Net transaction accounts2 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 lA years was reduced from 3 percent to 1 VS 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 11/2 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 l'/z 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 l/l years (see note 5). Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1996 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999933 11999944 11999955 May June July Aug. Sept. Oct. Nov. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 17,717 17,484 10,932 0 3,311 0 0 0 0 6,502 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 332,229 376,277 398,487 40,467 31,726 32,368 34,271 32,791 38,661 29,037 4 Redemptions 0 0 900 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 1,223 1,238 390 0 0 0 1,240 0 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 31,368 0 0 5,107 0 2,807 2,780 2,371 1,623 3,818 8 Exchanges -36,582 -21,444 0 -5,448 0 —4,415 -3,580 -2,890 -1,770 -5,655 9 Redemptions 0 0 0 0 0 0 0 0 0 0 One to five years 10 Gross purchases 10,350 9,168 4,966 0 0 0 1,279 0 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shifts -27,140 -6,004 0 -4,049 0 -2,807 -1,409 -2,371 -1,623 -2,102 13 Exchanges 0 17,801 0 3,748 0 3,694 1,780 2,890 1,395 2,715 Five to ten years 14 Gross purchases 4,168 3,818 1,239 0 0 0 297 0 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shifts 0 -3,145 0 -1,058 0 0 -1,371 0 0 1,716 17 Exchanges 0 2,903 0 1,700 0 721 900 0 375 1,470 More than ten years 18 Gross purchases 3,457 3,606 3,122 0 0 0 900 0 0 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 0 900 0 0 1,470 All maturities 22 Gross purchases 36,915 35,314 20,649 0 3,311 0 3,716 0 0 6,502 23 Gross sales 0 0 0 0 0 0 0 0 0 0 24 Redemptions 767 2,337 2,376 0 0 0 0 0 0 0 Matched transactions 25 Gross purchases 1,475,941 1,700,836 2,197,736 259,135 248,534 267,438 265,397 234,992 268,304 227,577 26 Gross sales 1,475,085 1,701,309 2,202,030 259,595 249,277 268,975 264,536 238,036 267,128 226,505 Repurchase agreements 27 Gross purchases 475,447 309,276 331,694 30,688 43,048 46,151 45,202 36,014 33,836 36,383 28 Gross sales 470,723 311,898 328,497 24,984 41,666 37,779 56,286 33,374 33,020 36,665 29 Net change in U.S. Treasury securities 41,729 29,882 17,175 5,244 3,950 6,836 -6,508 -404 1,993 7,293 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 16 40 52 0 27 63 10 Repurchase agreements 33 Gross purchases 35,063 52,696 36,851 5,722 5,138r 3,145 8,500 4,536 12,683 9,264 34 Gross sales 34,669 52,696 36,776 4,372 6,488 2,863 7,544 4,436 11,051 9,471 35 Net change in federal agency obligations -380 -1,002 -1,228 1,334 — l,390r 231 956 73 1,569 -217 36 Total net change in System Open Market Account... 41,348 28,880 15,948 6,578 2,560r 7,066 -5,552 -331 3,562 7,076 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 • March 1997 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1996 1996 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Oct. 31 Nov. 30 Dec. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11.049 11,049 11,048 11,049 11,048 11,049 11,049 11,048 2 Special drawing rights certificate account 9,718 9,718 9,718 9,718 9,718 9,718 9,718 9,718 3 Coin 619 598 618 624 621 621 621 591 Loans 4 To depository institutions 93 1,788 71 248 105 162 188 85 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 1 Bought outright 2,237 2,237 2,225 2,225 2,225 2,247 22,,223377 22,,222255 8 Held under repurchase agreements 2,323 618 1,523 1,154 955 2,970 2,763 1,612 9 Total U.S. Treasury securities 398,755 404,203 399,226 415,208 407,289 392,917 400,210 410,878 10 Bought outright2 392,767 390,802 393,307 392,587 395,381 385,087 392,662 390,907 11 Bills 192,507 190,542 193,047 192,326 195,120 184,826 192,401 190,647 12 Notes 150,922 150,922 150,922 150,922 150,922 152,392 150,922 150,922 13 Bonds 49,339 49,339 49,339 49,339 49,339 47,869 49,339 49,339 14 Held under repurchase agreements 5,988 13,401 5,919 22,621 11,908 7,830 7,548 19,971 15 Total loans and securities 403,407 408,846 403,044 418,835 410,573 398,296 405,397 414,800 16 Items in process of collection 6,682 7,059 7,158 8,940 10,694 5,646 3,609 12,761 17 Bank premises 1,221 1,222 1,231 1,230 1,232 1,215 1,221 1,233 Other assets 18 Denominated in foreign currencies' 19,542 19,342 19,350 19,358 19,365 19,511 19,338 19,264 19 All other4 10,013 10,680 10,439 12,273 11,751 11,442 10,332 11,725 20 Total assets 462,251 468,513 462,606 482,027 475,002 457,498 461,286 481,140 LIABILITIES 21 Federal Reserve notes 416,966 418,573 418,673 420,386 424,491 409,304 416,915 426,522 22 Total deposits 25,309 29,669 23,441 40,512 27,865 29,754 27,450 33,325 23 Depository institutions 20.158 24,390 18,027 30,003 20,910 23,317 22,131 24,524 24 U.S. Treasury—General account 4,688 4,790 4,896 9,989 6,479 5,897 4,857 7,742 25 Foreign—Official accounts 164 166 168 163 214 176 170 167 26 Other 299 323 351 358 265 363 292 892 27 Deferred credit items 5,811 6,387 6,257 6,664 7,970 4,375 2,702 7,464 28 Other liabilities and accrued dividends5 4,666 4,612 4,720 4,928 4,707 4,598 4,730 4,732 29 Total liabilities 452,752 459,241 453,091 472,491 465,034 448,031 451,796 472,043 CAPITAL ACCOUNTS 30 Capital paid in 4,587 4,587 4,584 4,578 4,601 4,565 4,587 4,602 31 Surplus 3,860 3,860 3,860 3,860 3,860 3,860 3,860 4,496 32 Other capital accounts 1,052 825 1,070 1,098 1,507 1,042 1,043 0 33 Total liabilities and capital accounts 462,251 468,513 462,606 482,027 475,002 457,498 461,286 481,140 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 610,668 616,949 613,715 612,387 610,954 600,425 614,599 618,074 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 529,445 529,404 530,133 530,107 528,530 530,917 529,197 526,826 36 LESS: Held by Federal Reserve Banks 112,479 110,831 111,460 109,721 104,039 121,613 112,282 100,304 37 Federal Reserve notes, net 416,966 418,573 418,673 420,386 424,491 409,304 416,915 426,522 Collateral held against notes, net 38 Gold certificate account 11,049 11,049 11,048 11,049 11,048 11,049 11,049 11,048 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 396,199 397,806 397,908 399,620 403,725 388,537 396,148 405,756 42 Total collateral 416,966 418,573 418,673 420,386 424,491 409,304 416,915 426,522 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 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Oct. 31 Nov. 30 Dec. 31 1 Total loans 93 1,788 71 248 105 186 188 85 2 Within fifteen days' 87 1,728 6 246 80 171 140 75 3 Sixteen days to ninety days 6 60 64 3 25 15 48 11 4 Total U.S. Treasury securities 398,755 404,203 399,226 415,208 407,289 385,087 392,662 410,878 5 Within fifteen days' 21,270 25,772 20,621 32,225 20,574 11,135 7,741 27,846 6 Sixteen days to ninety days 85,628 86,868 91,835 90,145 93,385 83,090 92,763 89,036 7 Ninety-one days to one year 120,333 120,442 115,649 121,717 122,208 121,176 120,633 122,780 8 One year to five years 95,917 95,513 95,513 95,513 95,513 95,302 95,917 95,607 9 Five years to ten years 33,782 33,782 33,782 33,782 33,782 33,782 3,782 33,782 10 More than ten years 41,826 41,826 41,826 41,826 41,826 40,356 41,826 41,826 11 Total federal agency obligations 4,560 2,855 3,748 3,379 3,180 2,247 2,237 3,837 12 Within fifteen days' 2,662 630 1,523 1,434 1,235 154 339 2,062 13 Sixteen days to ninety days 644 964 964 694 694 806 644 541 14 Ninety-one days to one year 242 249 249 249 249 275 242 232 15 One year to five years 520 520 520 520 520 520 520 520 16 Five years to ten years 467 467 467 457 457 467 467 457 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 • March 1997 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1996 IItteemm DD 1199 ee 99 cc 33 .. DD 1199 ee 99 cc 44 .. DD 1199 ee 99 cc 55 .. DD 1199 ee 99 cc 66 .. May June July Aug. Sept. Oct. Nov.r Dec. Seasonally adjusted AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS2222 1111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss3333 60.52 59.36 56.36 50.17 54.23 54.11 53.20 52.27 51.35 50.14 49.88 50.17 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss4444 60.44 59.16 56.11 50.01 54.10 53.73 52.83 51.94 50.98 49.85 49.66 50.01 3333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 60.44 59.16 56.11 50.01 54.10 53.73 52.83 51.94 50.98 49.85 49.66 50.01 4444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 59.46 58.20 55.09 48.75 53.37 52.96 52.13 51.31 50.31 49.14 48.84 48.75 5555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee6666 386.88 418.72 435.01 453.51 437.01 439.09 441.88 444.20 445.88r 447.19r 449.35 453.51 Not seasonally adjusted 6666 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss7777 62.37 61.13 58.02 51.61 53.29 53.87 53.05 51.88 51.27 49.85 50.08 51.61 7777 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 62.29 60.92 57.76 51.45 53.16 53.48 52.69 51.55 50.90 49.56 49.87 51.45 8888 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 62.29 60.92 57.76 51.45 53.16 53.48 52.69 51.55 50.90 49.56 49.87 51.45 9999 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss8888 61.31 59.96 56.74 50.19 52.43 52.72 51.99 50.92 50.23 48.85 49.05 50.19 11110000 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee9999 390.59 422.51 439.03 456.80 436.13 439.89 443.22 444.58 445.55r 445.44r 449.27 456.80 NNNNOOOOTTTT AAAADDDDJJJJUUUUSSSSTTTTEEEEDDDD FFFFOOOORRRR CCCCHHHHAAAANNNNGGGGEEEESSSS IIIINNNN RRRREEEESSSSEEEERRRRVVVVEEEE RRRREEEEQQQQUUUUIIIIRRRREEEEMMMMEEEENNNNTTTTSSSS11110000 11111111 TTTToooottttaaaallll rrrreeeesssseeeerrrrvvvveeeessss11111111 62.86 61.34 57.90 51.25 53.14 53.69 52.84 51.64 51.00 49.55 49.76 51.25 11112222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss 62.78 61.13 57.64 51.09 53.01 53.30 52.48 51.31 50.63 49.26 49.54 51.09 11113333 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd rrrreeeesssseeeerrrrvvvveeeessss pppplllluuuussss eeeexxxxtttteeeennnnddddeeeedddd ccccrrrreeeeddddiiiitttt5555 62.78 61.13 57.64 51.09 53.01 53.30 52.48 51.31 50.63 49.26 49.54 51.09 11114444 RRRReeeeqqqquuuuiiiirrrreeeedddd rrrreeeesssseeeerrrrvvvveeeessss 61.80 60.17 56.62 49.82 52.28 52.54 51.78 50.68 49.96 48.56 48.72 49.82 11115555 MMMMoooonnnneeeettttaaaarrrryyyy bbbbaaaasssseeee11112222 397.62 427.25 444.45 463.49 442.17 445.95 449.29 450.77 451.72r 451.9 lr 455.90 463.49 11116666 EEEExxxxcccceeeessssssss rrrreeeesssseeeerrrrvvvveeeessss''''3333 1.06 1.17 1.28 1.42 .86 1.15 1.07 .96 1.04 .99 1.04 1.42 11117777 BBBBoooorrrrrrrroooowwwwiiiinnnnggggssss ffffrrrroooommmm tttthhhheeee FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee .08 .21 .26 .16 .13 .39 .37 .33 .37 .29 .21 .16 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly 8. To adjust required reserves for discontinuities that are due to regulatory changes in statistical release. Historical data starting in 1959 and estimates of the effect on required reserve requirements, a multiplicative procedure is used to estimate what required reserves reserves of changes in reserve requirements are available from the Money and Reserves would have been in past periods had current reserve requirements been in effect. Break- Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve adjusted required reserves include required reserves against transactions deposits and nonper- System, Washington, DC 20551. sonal time and savings deposits (but not reservable nondeposit liabilities). 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory 9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus changes in reserve requirements. (See also table 1.10.) (2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all adjusted required reserves (line 4) plus excess reserves (line 16). those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, difference between current vault cash and the amount applied to satisfy current reserve break-adjusted total reserves (line 1) less total borrowings of depository institutions from the requirements. Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no 5. Extended credit consists of borrowing at the discount window under the terms and adjustments to eliminate the effects of discontinuities associated with regulatory changes in conditions established for the extended credit program to help depository institutions deal reserve requirements. with sustained liquidity pressures. Because there is not the same need to repay such 11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve borrowing promptly as with traditional short-term adjustment credit, the money market effect requirements. of extended credit is similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total 6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for component of the money stock, plus (3) (for all quarterly reporters on the "Report of all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve difference between current vault cash and the amount applied to satisfy current reserve requirements. Since the introduction of contemporaneous reserve requirements in February requirements. 1984, currency and vault cash figures have been measured over the computation periods 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess ending on Mondays. reserves (line 16). 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1996r 1993 1994 1995 1996 IItteemm Dec. Dec. Dec. Dec. Sept. Oct. Nov. Dec. Seasonally adjusted Measures2 1 Ml 1,128.6 1,148.7 1,124.9 1,076.9 1,090.9 1,075.7 1,075.8 1,076.9 2 M2 3,494.0 3,509.2 3,657.4 3,825.8 3,764.1 3,773.4 3,797.9 3,825.8 3 M3 4,249.5r 4,319.2 4,572.lr 4,894.5 4,780.7 4,816.3 4,845.5 4,894.5 4 L 5,164.4r 5,302.9 5,681.5r n.a. 5,923.1 5,944.2 5,986.6 n.a. 5 Debt 12,506.5 13,148.4 13,866.9 n.a. 14,418.4 14,480.1 14,545.2 n.a. Ml components 6 Currency3 322.4 354.9 373.2 395.7 387.5 390.4 392.7 395.7 7 Travelers checks4 7.9 8.5 8.9 8.6 8.4 8.5 8.6 8.6 8 Demand deposits5 384.3 382.4 389.8 400.7 405.0 395.9 400.4 400.7 9 Other checkable deposits6 414.0 402.9 353.0 271.8 290.0 280.9 274.2 271.8 Nontransaction components 10 In M27 2,365.4 2,360.5 2,532.6 2,748.8 2,673.2 2,697.7 2,722.1 2,748.8 11 In M3 only8 755.6 810.0 914.7r 1,068.7 1,016.6 1,042.9 1,047.5 1,068.7 Commercial banks 12 Savings deposits, including MMDAs 785.0 751.9 775.0 903.1 864.6 877.1 890.8 903.1 13 Small time deposits9 470.3 505.3 578.3 592.9 583.6 586.5 590.5 592.9 14 Large time deposits10, 11 272.2 298.3 342.1 414.8 381.5 396.9 402.0 414.8 Thrift institutions 15 Savings deposits, including MMDAs 433.8 397.0 359.5 368.3 366.9 367.8 367.2 368.3 16 Small time deposits9 317.6 318.2 359.4 355.7 353.2 355.3 356.3 355.7 17 Large time deposits10 61.5 64.8 75.1 79.4 78.0 78.9 79.5 79.4 Money market mutual funds 18 Retail 358.7 388.1 460.3 528.9 504.9 511.0 517.3 528.9 19 Institution-only 197.9 183.7 227.2 273.9 262.7 264.3 267.2 273.9 Repurchase agreements and Eurodollars 20 Repurchase agreements12 157.5 180.9 179.4 191.1 194.7 196.9 194.9 191.1 21 Eurodollars12 66.3 82.3 90.9r 109.6 99.7 105.8 103.9 109.6 Debt components 22 Federal debt 3,323.3 3,492.2 3,638.8 n.a. 3,746.4 3,758.2 3,771.4 n.a. 23 Nonfederal debt 9,183.1 9,656.2 10,228.1 n.a. 10,672.0 10,721.9 10,773.9 n.a. Not seasonally adjusted Measures2 24 Ml 1,153.7 1,174.2 1,150.7 1,101.4 1,088.3 1,075.0 1,083.6 1,101.4 25 M2 3,514.0r 3,529.6 3,677.1 3,843.7 3,761.2 3,769.1 3,803.8 3,843.7 26 M3 4,271.2 4,340.9 4,593.2r 4,913.7 4,775.5 4,817.0 4,859.6 4,913.7 27 L 5,194.1 5,332.3 5,711.0r n.a. 5,907.8 5,935.4 6,000.9 n.a. 28 Debt 12,508.5 13,150.0 13,867.4 n.a. 14,381.3 14,444.6 14,528.2 n.a. Ml components 29 Currency3 324.8 357.5 376.1 397.9 386.9 389.0 392.9 397.9 30 Travelers checks4 7.6 8.1 8.5 8.3 8.8 8.6 8.4 8.3 31 Demand deposits5 401.8 400.1 407.9 419.4 404.2 398.9 408.1 419.4 32 Other checkable deposits6 419.4 408.4 358.1 275.8 288.5 278.5 274.2 275.8 Nontransaction components 33 In M27 2,360.4 2,355.4 2,526.4 2,742.3 2,672.8 2,694.1 2,720.2 2,742.3 34 In M3 only8 757.1 811.4 916.1r 1,070.0 1,014.4 1,048.0 1,055.8 1,070.0 Commercial banks 35 Savings deposits, including MMDAs 784.3 751.6 775.0 903.0 867.0 879.0 894.5 903.0 36 Small time deposits9 468.2 502.3 574.3 588.6 583.6 585.6 587.4 588.6 37 Large time deposits10' 11 272.0 298.1 342.0 414.6 382.2 400.0 405.6 414.6 Thrift institutions 38 Savings deposits, including MMDAs 433.4 396.9 359.5 368.3 367.9 368.6 368.7 368.3 39 Small time deposits9 316.1 316.3 356.9 353.1 353.3 354.8 354.4 353.1 40 Large time deposits10 61.5 64.8 75.1 79.4 78.1 79.6 80.2 79.4 Money market mutual funds 41 Retail 358.3 388.2 460.6 529.3 501.1 506.0 515.2 529.3 42 Institution-only 199.4 185.5 229.4 276.5 258.0 262.6 269.9 276.5 Repurchase agreements and Eurodollars 43 Repurchase agreements12 156.6 179.6 178.0 189.3 195.7 198.8 194.4 189.3 44 Eurodollars12 67.6 83.4 91.6r 110.2 100.2 107.1 105.6 110.2 Debt components 45 Federal debt 3,329.5 3,499.0 3,645.9 n.a. 3,736.1 3,740.9 3,771.4 n.a. 46 Nonfederal debt 9,179.0 9,651.0 10,221.4 n.a. 10,645.2 10,703.8 10,756.9 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • March 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 depositor/ institutions and money market funds. Seasonally adjusted M2 is tions, less cash items in the process of collection and Federal Reserve float. calculated by summing savings deposits, small-denomination time deposits, and retail money 6. Consists of NOW and ATS account balances at all depository institutions, credit union fund balances, each seasonally adjusted separately, and adding this result to seasonally share draft account balances, and demand deposits at thrift institutions. adjusted Ml. 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) money fund balances. issued by all depository institutions, (2) balances in institutional money funds (money funds 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities with minimum initial investments of $50,000 or more), (3) RP liabilities (overnight and term) (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and issued by all depository institutions, and (4) Eurodollars (overnight and term) held by U.S. term) of U.S. addressees. residents at foreign branches of U.S. banks worldwide and at all banking offices in the United 9. Small time deposits—including retail RPs—are those issued in amounts of less than Kingdom and Canada. Excludes amounts held by depository institutions, the U.S. govern- $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are ment, money market funds, and foreign banks and official institutions. Seasonally adjusted subtracted from small time deposits. M3 is calculated by summing large time deposits, institutional money fund balances, RP 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those liabilities, and Eurodollars, each seasonally adjusted separately, and adding this result to booked at international banking facilities. seasonally adjusted M2. 11. Large time deposits at commercial banks less those held by money market funds, L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury depository institutions, the U.S. government, and foreign banks and official institutions. securities, commercial paper, and bankers acceptances, net of money market fund holdings of 12. Includes both overnight and term. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1 1996 1995 1996 IItteemm Dec. Dec. Apr. May June July Aug. Sept. Oct. Nov. Dec. Interest rates (annual effective yields)2 INSURED COMMERCIAL BANKS 1 Negotiable order of withdrawal accounts3 1.91 n.a. 1.88 1.88 1.89 1.90 1.91 1.90 1.91 1.98 n.a. 2 Savings deposits3,4 3.10 n.a. 2.91 2.89 2.87 2.88 2.86 2.84 2.85 2.85 n.a. Interest-bearing time deposits with balances of less than $100,000, by maturity 3 7 to 91 days 4.10 4.03 4.01 4.03 4.08 4.13 4.17 4.11 4.11 4.08r 4.03 4 92 to 182 days 4.68 4.63 4.51 4.51 4.55 4.59 4.60 4.61 4.60 4.60 4.63 5 183 days to 1 year 5.02 5.01 4.86 4.88 4.95 5.00 5.00 5.04 5.02 4.99 5.01 6 More than 1 year to 2 Vi years 5.17 5.22 5.03 5.10 5.18 5.25 5.25 5.29 5.27 5.23 5.22 7 More than 2 Y2 years 5.40 5.46 5.28 5.36 5.46 5.50 5.50 5.54 5.52 5.48 5.46 BIF-INSURED SAVINGS BANKS5 8 Negotiable order of withdrawal accounts3 1.91 n.a. 1.84 1.81 1.80 1.81 1.81 1.84 1.90 1.92 n.a. 9 Savings deposits3'4 2.98 n.a. 2.85 2.84 2.86 2.88 2.86 2.84 2.80 2.82 n.a. Interest-bearing time deposits with balances of less than $100,000, by maturity 10 7 to 91 davs 4.43 4.66 4.42 4.49 4.54 4.64 4.64 4.59 4.64 4.67 4.66 11 92 to 182 days 4.95 5.02 4.77 4.83 4.91 5.01 5.06 5.11 5.08 5.03 5.02 12 183 days to 1 year 5.18 5.28 4.91 4.96 5.02 5.09 5.26 5.33 5.32 5.29 5.28 13 More than 1 year to 2l/i years 5.33 5.53 5.23 5.26 5.35 5.41 5.59 5.61 5.60 5.56 5.53 14 More than 2w years 5.46 5.72 5.32 5.38 5.51 5.60 5.80 5.82 5.79 5.76 5.72 Amounts outstanding (millions of dollars) INSURED COMMERCIAL BANKS 15 Negotiable order of withdrawal accounts3 248,417 n.a. 228,551 208,570 201,037 204,980 190,696 190.033 188,803 167,503r n.a. 16 Savings deposits3'4 776,466 n.a. 805,419 839,319 838,385 835,033 860,719 852,336 859,524 896.820r n.a. 17 Personal 615,113 n.a. 639,848 668,788 667,802 662,465 683,081 675,576 680.596 713,672r n.a. 18 Nonpersonal 161,353 n.a. 165,572 170,531 170,583 172,568 177,638 176,759 178,928 183,148r n.a. Interest-bearing time deposits with balances of less than $100,000, by maturity 19 7 to 91 days 32,170 32,864 34,117 30,383 31,483 31,690 32,907 32.695 32,428 32,044r 32.864 20 92 to 182 days 93,941 92,082 96,168 95,911 94,654 93,941 91,235 91,167 91,195 92,503r 92.082 21 183 days to 1 year 183,834 201,573 190,297 193,821 194,900 197,108 200,038 200,008 199,397 201.28T 201.573 22 More than 1 year to 2[A years 208,601 212,950 208,571 208,932 209,390 208,906 209,618 211,234 213,012 214.405r 212.950 23 More than 2 V2 years 199,002 199,029 198,236 198,922 198,935 198,224 199,755 198,324 199,126 198.539r 199.029 24 IRA and Keogh plan deposits 150,067 151,158 151,396 151,652 151,690 150,873 151,048 151,309 151,276 151,389r 151.158 BIF-INSURED SAVINGS BANKS5 25 Negotiable order of withdrawal accounts3 11,918 n.a. 11,461 11,715 11,255 10,889 10,682 9,838 9,938 9,710 n.a. 26 Savings deposits3,4 68,643 n.a. 66,729 67,630 66,938 66,854 67,431 67,980 67,975 68,102 n.a. 27 Personal 65,366 n.a. 63,486 64,121 63,642 63,557 63,927 64.425 64,326 64,369r n.a. 28 Nonpersonal 3,277 n.a. 3,243 3,510 3,296 3,296 3,504 3,555 3,649 3,733r n.a. Interest-bearing time deposits with balances of less than $100,000, by maturity 29 7 to 91 days 2,001 2,427 2,182 2,349 2,229 2,368 2,316 2,540 2.503 2,405 2.427 30 92 to 182 days 12,140 13,008 13,931 13,955 13,725 13,587 13,440 13,474 13,300 13,074r 13.008 31 183 days to 1 year 25,686 28,801 27,305 28,121 27,950 28,506 29,339 29,383 29,659 29,329r 28,801 32 More than 1 year to 21/2 years 27,482 29,098 25,704 25,444 25,513 26,132 26,199 27,192 28,063 28.573 29,098 33 More than 2 Yl years 22,866 22,253 22,547 22,661 22,593 22,563 22,477 22,348 22,156 21.823r 22.253 34 IRA and Keogh plan accounts 21,408 20,469 20,697 20,683 21,116 21,051 21,052 21,002 20,983 20.627 20.469 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. Owing to statistical difficulties associated in part with the implementation of sweep stratified random sample of about 425 commercial banks and 75 savings banks on the last day accounts, estimates for NOW and savings accounts are not available beginning December of each month. Data are not seasonally adjusted and include IRA and Keogh deposits and 1996. foreign currency-denominated deposits. Data exclude retail repurchase agreements and depos- 4. Includes personal and nonpersonal money market deposits. its held in U.S. branches and agencies of foreign banks. 5. Includes both mutual and federal savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • March 1997 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1 A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 4 Dec. 11 Dec. 18 Dec. 25 Seasonally adjusted Assets 1 Bank credit 3,610.1 3,680.7 3,685.3 3,675.5 3,690.0 3,717.9 3,745.6 3,767.7 3,750.7 3,762.4 3,760.9 3,780.2 2 Securities in bank credit 1,001.9 989.7 983.7 972.3 966.5 968.5 986.5 993.7 991.3 996.4 989.2 997.4 3 U.S. government securities 710.5 708.5 707.6 701.3 702.2 700.9 705.7 704.3 703.6 704.7 701.9 705.8 4 Other securities 291.4 281.3 276.1 271.0 264.3 267.6 280.8 289.4 287.7 291.7 287.3 291.6 5 Loans and leases in bank credit2 . . . 2,608.1 2,691.0 2,701.6 2,703.3 2,723.5 2,749.4 2,759.1 2,774.0 2,759.3 2,766.0 2,771.7 2,782.9 6 Commercial and industrial 716.4 738.5 743.1 744.5 759.1 770.3 774.9 785.9 778.8 785.6 785.9 788.5 7 Real estate 1,077.5 1,103.3 1,103.8 1,110.0 1,111.8 1,114.2 1,117.8 1,125.0 1,122.4 1,122.9 1,124.1 1.125.0 8 Revolving home equity 79.1 79.3 79.9 80.6 81.2 82.4 83.4 85.2 84.7 84.8 85.1 85.5 9 Other 998.4 1,024.1 1,023.9 1,029.5 1,030.6 1,031.8 1,034.3 1,039.8 1,037.7 1,038.1 1,039.0 1,039.5 10 Consumer 493.1 510.0 513.0 514.3 517.9 517.5 518.2 518.6 517.3 517.1 517.7 520.3 11 Security3 83.0 81.5 79.1 72.7 73.4 78.6 78.7 76.2 74.7 71.9 76.3 80.3 12 Other loans and leases 238.1 257.6 262.6 261.7 261.4 268.8 269.6 268.3 266.2 268.5 267.8 268.8 13 Interbank loans 193.7 208.4 197.3 198.3 205.0 199.7 213.0 199.8 209.5 197.6 198.6 200.8 14 Cash assets4 223.6 217.2 219.1 221.8 219.9 222.2 231.3 229.7 222.2 229.4 228.8 237.2 15 Other assets5 226.0 240.1 249.6 255.3 258.2 251.0 261.2 269.9 271.7 271.0 267.6 270.7 16 Total assets6 4,197.0 4,289.2 4,293.8 4,293.4 4315.5 4332.9 4393.4 4,409.5 4396.4 4,402.8 4398.4 4,431.2 Liabilities 17 Deposits 2,670.8 2,721.1 2,732.2 2,753.2 2,777.6 2,810.6 2,846.8 2,883.7 2,867.7 2,871.1 2,861.2 2,905.2 18 Transaction 775.7 750.0 741.9 734.1 725.6 719.6 723.1 723.9 710.1 720.3 705.6 741.5 19 Nontransaction 1,895.2 1,971.2 1,990.3 2,019.1 2,051.9 2,091.0 2,123.7 2,159.8 2,157.6 2,150.9 2,155.6 2,163.7 20 Large time 421.4 444.2 453.9 460.5 471.5 487.4 493.7 510.3 501.8 506.4 510.0 514.4 21 Other 1,473.7 1,527.0 1,536.4 1,558.7 1,580.4 1,603.7 1,630.0 1,649.5 1,655.8 1,644.4 1,645.6 1,649.4 22 Borrowings 681.7 713.1 704.2 716.1 717.0 681.4 696.3 681.0 671.7 671.2 693.9 686.5 23 From banks in the U.S 280.3 303.2 293.3 298.3 301.8 292.7 295.7 282.5 284.9 279.5 283.8 293.6 24 From others 401.5 409.9 410.9 417.8 415.3 388.7 400.6 398.4 386.8 391.7 410.1 392.8 25 Net due to related foreign offices 263.5 257.2 253.6 244.4 248.9 243.8 236.8 229.9 234.5 228.3 236.7 226.1 26 Other liabilities 230.2 226.4 218.7 218.6 218.6 238.3 252.0 252.3 259.4 259.3 245.5 249.2 27 Total liabilities 3,846.3 3,917.8 3,908.8 3,9323 3,962.1 3,974.1 4,031.9 4,046.9 4,033.4 4,029.9 4,037.3 4,067.0 28 Residual (assets less liabilities)7 350.7 371.4 385.0 361.1 353.4 358.8 361.4 362.6 363.0 372.8 361.0 364.2 Not seasonally adjusted Assets 29 Bank credit 3,617.3 3,677.8 3,678.5 3,674.7 3,694.0 3,716.8 3,744.6 3,768.0 3,752.8 3,757.8 3,765.2 3,774.7 30 Securities in bank credit 991.8 991.1 980.7 976.5 969.2 967.8 978.7 976.1 983.1 980.5 973.1 972.9 31 U.S. government securities 706.0 708.6 705.4 704.5 703.7 700.2 704.4 699.5 704.7 703.5 700.1 695.7 32 Other securities 285.8 282.5 275.3 272.0 265.5 267.6 274.3 276.5 278.4 276.9 273.0 277.3 33 Loans and leases in bank credit2 . .. 2,625.5 2,686.7 2,697.9 2,698.2 2,724.8 2,749.0 2,765.9 2,792.0 2,769.6 2,777.3 2.792.2 2,801.7 34 Commercial and industrial 714.6 741.5 744.2 741.2 754.1 765.8 773.0 782.3 775.4 777.6 782.3 786.9 35 Real estate 1,082.2 1,101.9 1,103.6 1,109.5 1,113.7 1,117.3 1,123.5 1,129.9 1,128.0 1,129.9 1,129.3 1,128.6 36 Revolving home equity 79.2 79.2 80.0 80.8 81.7 83.0 83.9 85.2 84.9 85.0 85.2 85.3 37 Other 1,003.1 1,022.7 1,023.6 1,028.8 1.032.0 1,034.3 1,039.6 1,044.7 1,043.1 1,045.0 1.044.1 1,043.3 38 Consumer 498.9 506.3 510.3 514.5 519.0 518.1 519.0 524.8 519.5 520.2 524.0 529.0 39 Security3 86.9 79.5 76.6 70.8 73.1 76.9 79.2 80.7 75.6 78.1 82.4 83.4 40 Other loans and leases 242.9 257.5 263.1 262.2 264.9 271.0 271.2 274.3 271.1 271.5 274.1 273.8 41 Interbank loans 206.1 204.5 194.5 192.9 199.5 197.8 215.8 212.7 223.6 209.1 213.4 207.1 42 Cash assets4 238.2 215.1 216.8 212.3 220.8 223.0 235.7 244.4 229.9 225.6 244.0 246.9 43 Other assets5 225.7 239.8 250.5 257.1 259.5 251.4 259.7 269.1 271.0 268.7 266.4 268.6 44 Total assets6 4,230.6 4,280.0 4,283.1 4,279.5 4315.9 4331.2 4398.0 4,436.2 4,4193 4,403.1 4,431.1 4,4393 Liabilities 45 Deposits 2,702.1 2,717.9 2,725.3 2,740.9 2,776.8 2,808.3 2,861.5 2,912.8 2,894.1 2,884.6 2,889.0 2,915.6 46 Transaction 811.0 743.5 734.8 720.4 724.7 717.9 734.8 757.2 733.6 729.3 738.6 764.6 47 Nontransaction 1,891.1 1,974.4 1,990.5 2.020.5 2,052.1 2,090.4 2,126.6 2,155.7 2,160.5 2,155.2 2,150.4 2,151.0 48 Large time 420.4 444.1 451.7 459.7 470.2 485.5 495.1 509.6 502.6 508.7 509.2 513.4 49 Other 1,470.7 1,530.4 1,538.8 1,560.8 1,581.9 1,604.9 1,631.5 1,646.1 1,657.9 1,646.5 1,641.2 1,637.6 50 Borrowings 693.0 721.6 713.0 707.5 709.5 672.2 690.4 691.1 684.9 675.5 711.0 692.8 51 From banks in the U.S 298.4 305.2 291.5 287.2 286.5 282.8 296.0 302.1 305.2 301.2 305.6 302.3 52 From others 394.6 416.4 421.5 420.3 423.0 389.3 394.4 388.9 379.6 374.3 405.4 390.4 53 Net due to related foreign offices 264.2 249.5 251.8 243.4 245.1 245.1 234.1 228.2 223.5 225.1 229.6 229.5 54 Other liabilities 225.3 227.1 218.2 218.1 218.7 238.3 252.0 252.3 259.4 259.3 245.5 249.2 55 Total liabilities 3,884.6 3,916.2 3,9083 3,909.9 3,950.1 3,964.0 4,038.0 4,084.4 4,061.9 4,044.5 4,075.1 4,087.1 56 Residual (assets less liabilities)7 345.9 363.9 374.8 369.6 365.8 367.3 360.0 351.8 357.4 358.6 356.0 352.2 MEMO 57 Revaluation gains on off-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. 68.3 71.4 74.9 70.0 67.3 65.4 71.9 58 Revaluation losses on off-balancesheet items' n.a. n.a. n.a. n.a. n.a. 58.2 60.4 63.7 65.3 61.5 58.6 66.1 Footnotes appear on page A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A17 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 4 Dec. 11 Dec. 18 Dec. 25 Seasonally adjusted Assets 1 Bank credit 3,172.0 3,214.7 3,219.3 3,210.9 3,226.1 3,234.6 3,241.4 3,256.7 3,244.7 3,249.6 3,250.8 3,265.1 7 Securities in bank credit 855.6 838.1 836.2 823.7 822.5 821.6 822.3 823.3 821.4 825.1 820.7 823.7 U.S. government securities 643.5 629.4 628.3 620.2 619.9 618.5 617.4 615.6 615.5 616.9 614.4 614.0 4 Other securities 212.1 208.7 207.9 203.5 202.6 203.2 204.9 207.8 205.8 208.2 206.3 209.7 Loans and leases in bank credit2 2,316.4 2,376.5 2,383.1 2,387.2 2,403.6 2,412.9 2,419.1 2,433.4 2,423.3 2,424.5 2,430.1 2,441.4 6 Commercial and industrial 534.8 548.5 550.7 552.8 560.6 563.3 564.4 568.8 566.8 567.3 567.5 570.3 7 Real estate 1,041.5 1,070.1 1,070.7 1,076.9 1,078.9 1,080.7 1,084.3 1,091.9 1,089.3 1,089.6 1,090.9 1,091.8 8 Revolving home equity 79.1 79.2 79.8 80.5 81.2 82.3 83.4 85.1 84.7 84.8 85.1 85.5 9 Other 962.4 990.9 990.9 996.4 997.8 998.4 1,000.9 1,006.7 1,004.7 1,004.9 1,005.8 1,006.3 in Consumer 493.1 510.0 513.0 514.3 517.9 517.5 518.2 518.6 517.3 517.1 517.7 520.3 n Security3 56.4 46.8 45.9 41.9 44.1 43.8 43.1 44.4 43.3 42.3 44.9 47.7 l? Other loans and leases 190.6 201.0 202.8 201.2 202.1 207.5 209.1 209.6 206.7 208.2 209.0 211.3 n Interbank loans 173.6 184.1 178.0 181.4 185.5 181.2 192.6 179.4 188.8 182.2 175.1 181.4 14 Cash assets4 193.1 191.4 191.3 194.0 192.1 193.4 200.6 197.9 189.7 197.4 197.2 205.4 15 Other assets5 178.8 200.4 210.6 215.1 219.8 218.1 226.0 233.3 234.6 232.3 232.2 234.4 16 Total assets6 3,661.1 3,733.4 3,741.8 3,743.9 3,766.0 3,769.5 3,803.0 3,809.8 3,8003 3,804.1 3,797.9 3,828.8 Liabilities 17 Deposits 2,503.6 2,549.5 2,552.4 2,572.8 2,591.8 2,605.0 2,640.4 2,662.7 2,651.6 2,653.2 2,639.3 2,680.8 18 Transaction 765.5 739.3 731.3 723.7 716.1 708.9 712.4 712.9 699.0 709.7 694.8 730.6 19 Nontransaction 1,738.1 1,810.2 1,821.1 1,849.0 1,875.7 1,896.0 1,928.0 1,949.9 1,952.6 1,943.5 1,944.5 1,950.3 ?o Large time 269.9 283.2 287.1 292.1 297.6 295.4 300.5 304.9 302.8 303.1 304.8 304.3 71 Other 1,468.2 1,527.0 1,534.0 1,557.0 1,578.1 1,600.6 1,627.5 1,644.9 1,649.9 1,640.3 1,639.7 1,645.9 77 Borrowings 571.5 582.9 579.4 584.4 595.2 565.7 570.0 558.5 549.6 547.0 572.6 563.0 73 From banks in the U.S 250.2 270.5 262.5 262.8 268.2 258.7 258.5 246.6 245.9 240.2 248.2 260.2 74 From others 321.3 312.5 316.9 321.6 327.1 306.9 311.5 311.9 303.7 306.8 324.4 302.7 75 Net due to related foreign offices 91.4 80.6 78.0 73.9 74.0 78.6 70.0 68.6 69.2 67.6 68.7 72.2 26 Other liabilities 145.4 157.1 151.4 153.1 153.1 165.8 171.9 171.6 175.0 174.4 167.6 170.0 27 Total liabilities 3,311.8 3370.1 3,361.2 3384.1 3,414.1 3,415.0 3,4523 3,461.4 3,445.4 3,442.2 3,448.2 3,486.0 28 Residual (assets less liabilities)7 349.3 363.3 380.6 359.8 351.9 354.4 350.7 348.4 354.8 362.0 349.7 342.8 Not seasonally adjusted Assets 79 Bank credit 3,178.0 3,214.9 3,211.5 3,207.7 3,228.6 3,236.7 3,248.3 3,262.9 3,254.1 3,251.6 3,260.7 3,267.3 30 Securities in bank credit 849.1 841.4 832.3 825.8 824.0 819.9 820.7 817.1 821.0 820.3 815.4 814.0 31 U.S. government securities 639.7 630.6 626.3 622.1 622.0 618.4 617.2 613.6 617.5 617.2 614.1 609.6 37 Other securities 209.4 210.8 206.0 203.6 202.0 201.5 203.5 203.5 203.5 203.2 201.3 204.4 33 Loans and leases in bank credit2 2,328.9 2,373.5 2,379.2 2,381.9 2,404.6 2,416.8 2,427.6 2,445.7 2,433.1 2,431.3 2,445.3 2,453.3 34 Commercial and industrial 532.8 551.0 550.7 548.6 556.4 560.9 563.3 565.8 564.2 561.7 565.0 567.7 35 Real estate 1,046.3 1,068.8 1,070.6 1,076.4 1,080.7 1,083.8 1,089.9 1,096.8 1,094.6 1,096.5 1,096.3 1,095.6 36 Revolving home equity 79.2 79.2 80.0 80.8 81.7 83.0 83.8 85.2 84.9 84.9 85.2 85.3 37 Other 967.1 989.6 990.7 995.7 999.0 1,000.8 1,006.0 1,011.6 1,009.7 1,011.6 1,011.1 1,010.3 38 Consumer 498.9 506.3 510.3 514.5 519.0 518.1 519.0 524.8 519.5 520.2 524.0 529.0 39 Security3 57.0 47.0 44.6 41.0 44.0 44.0 44.5 45.1 44.2 43.4 47.1 47.5 40 Other loans and leases 193.9 200.4 203.0 201.5 204.5 210.0 211.0 213.3 210.5 209.5 213.0 213.6 41 Interbank loans 184.6 182.1 175.3 176.5 179.4 178.0 196.0 191.0 202.7 193.2 189.7 186.7 47 Cash assets4 208.1 188.6 188.6 183.8 192.1 193.9 205.4 213.0 198.4 194.4 212.9 214.8 43 Other assets5 178.2 200.2 211.9 216.0 221.0 218.6 224.0 232.2 233.3 228.9 230.8 232.8 44 Total assets6 3,692.1 3,728.6 3,730.2 3,726.6 3,763.3 3,769.6 3,816.1 3,841.3 3,830.6 3,810.4 3,8363 3,843.9 Liabilities 45 Deposits 2,534.0 2,544.1 2,547.8 2,562.1 2,591.1 2,604.4 2,653.1 2,688.1 2,676.5 2,663.1 2,663.5 2,685.3 46 Transaction 800.5 733.1 724.1 710.2 714.5 707.1 724.0 745.5 722.4 718.7 727.0 753.0 47 Nontransaction 1,733.5 1,811.0 1,823.6 1,852.0 1,876.6 1,897.3 1,929.1 1,942.6 1,954.1 1,944.4 1,936.5 1,932.3 48 Large time 265.5 283.1 287.2 293.4 296.9 294.9 300.1 299.5 300.7 300.2 299.2 297.1 49 Other 1,467.9 1,528.0 1,536.4 1,558.5 1,579.6 1,602.4 1,629.0 1,643.1 1,653.4 1,644.2 1,637.2 1,635.3 50 Borrowings 583.6 587.1 582.4 573.9 585.9 559.0 567.9 569.0 561.7 552.4 589.8 570.0 51 From banks in the U.S 266.7 270.6 259.3 252.1 253.1 251.1 259.5 264.2 264.6 260.0 267.4 267.7 57 From others 316.9 316.5 323.1 321.8 332.9 308.0 308.4 304.8 297.1 292.4 322.4 302.3 53 Net due to related foreign offices 89.3 79.3 76.9 72.2 70.8 77.9 68.3 66.2 65.7 67.0 65.5 71.9 54 Other liabilities 143.5 157.5 151.4 151.7 153.0 165.8 171.9 171.6 175.0 174.4 167.6 170.0 55 Total liabilities 3,350.4 3368.1 3,358.5 3360.0 3,400.9 3,407.1 3,461.2 3,494.9 3,478.8 3,456.9 3,4863 3,4973 56 Residual (assets less liabilities)7 341.7 360.6 371.7 366.6 362.4 362.5 354.8 346.4 351.8 353.4 350.0 346.6 MEMO 57 Revaluation gains on off-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. 32.4 33.1 36.2 35.2 34.8 33.9 39.3 58 Revaluation losses on off-balancesheet items8 n.a. n.& n.a. n.a. n.a. 28.9 28.9 31.8 31.4 29.8 27.5 34.2 59 Mortgage-backed securities9 n.a. n.a. n.a. n.a. n.a. 236.3 238.4 242.0 240.8 239.8 241.8 242.3 Footnotes appear on page A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • March 1997 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 4 Dec. 11 Dec. 18 Dec. 25 Seasonally adjusted Assets 1 Bank credit 1,829.2 1,820.0 1,814.1 1,796.6 1,804.4 1,807.1 1,808.4 1,815.2 1,809.5 1,810.4 1,810.0 1,824.0 2 Securities in bank credit 452.5 426.2 422.0 409.3 407.4 407.1 409.6 409.5 409.5 410.7 407.3 410.6 3 U.S. government securities 318.2 297.3 294.1 285.8 284.9 284.8 285.6 283.0 284.4 283.2 281.8 282.4 4 Trading account 23.3 20.9 20.8 19.5 20.6 21.3 21.8 19.2 22.5 22.7 17.3 17.2 5 Investment account 294.9 276.4 273.2 266.4 264.3 263.5 263.8 263.8 261.9 260.5 264.5 265.2 6 Other securities 134.3 128.9 128.0 123.5 122.5 122.3 124.0 126.5 125.2 127.5 125.5 128.2 7 Trading account 62.6 58.4 59.6 57.7 57.1 55.7 57.8 58.6 58.3 60.0 57.5 59.6 8 Investment account 71.7 70.5 68.3 65.8 65.4 66.6 66.2 67.9 66.9 67.5 68.0 68.6 9 State and local government.. 21.8 20.6 20.6 20.5 20.3 20.2 20.2 20.4 20.2 20.3 20.4 20.4 10 Other 49.8 49.9 47.7 45.3 45.1 46.4 46.0 47.5 46.6 47.3 47.5 48.2 11 Loans and leases in bank credit2 . . . 1,376.7 1,393.8 1,392.1 1,387.3 1,396.9 1,400.0 1,398.8 1,405.7 1,400.0 1,399.6 1,402.7 1,413.4 12 Commercial and industrial 367.7 373.1 373.7 373.9 379.7 381.2 380.9 383.7 382.8 383.0 382.7 384.9 13 Real estate 558.0 561.6 558.4 559.3 558.1 556.4 556.3 559.4 559.1 558.2 558.7 559.2 14 Revolving home equity 52.8 52.7 53.1 53.2 53.4 53.5 54.1 54.9 54.5 54.7 54.9 55.1 15 Other 505.2 508.9 505.3 506.1 504.6 502.9 502.2 504.6 504.6 503.5 503.8 504.1 16 Consumer 272.2 280.4 280.6 280.8 283.1 280.1 279.7 279.7 278.9 278.6 278.1 281.9 17 Security3 50.7 41.6 40.9 36.8 38.9 38.8 37.8 39.1 37.9 37.0 39.7 42.3 18 State and local government 11.6 11.1 11.2 11.1 10.8 10.8 11.1 11.3 11.4 11.5 11.2 11.2 19 All other 116.5 126.1 127.3 125.4 126.4 132.7 133.0 132.6 129.9 131.4 132.2 133.9 20 Interbank loans 115.1 132.1 130.0 132.0 134.1 130.3 138.0 124.4 133.0 127.9 121.0 124.9 21 Cash assets4 130.3 125.2 127.1 128.8 127.4 127.9 133.7 130.6 123.3 130.5 130.9 137.3 22 Other assets5 128.0 150.2 155.2 159.2 162.3 159.7 165.3 172.7 172.6 170.7 170.7 173.2 23 Total assets6 2,166.0 2,191.0 2,189.5 2,179.9 2,191.6 2,188.2 2,209.0 2,206.6 2,201.9 2,2033 2,196.5 2,223.2 Liabilities 24 Deposits 1,307.2 1,336.6 1,340.9 1,344.8 1,349.1 1,355.0 1,366.1 1,372.4 1,368.4 1,369.0 1,356.2 1,389.7 25 Transaction 430.6 412.0 409.9 401.6 392.1 386.8 386.8 384.9 375.3 384.0 371.0 400.4 26 Nontransaction 876.6 924.6 931.0 943.2 957.0 968.3 979.3 987.5 993.1 985.0 985.2 989.3 27 Large time 125.3 134.5 136.4 139.5 145.5 152.1 154.1 156.4 154.6 154.5 155.8 156.3 28 Other 751.3 790.1 794.5 803.8 811.5 816.2 825.2 831.1 838.5 830.5 829.5 833.1 29 Borrowings 433.1 427.4 417.4 415.7 426.8 402.9 409.2 401.4 392.6 392.2 413.5 406.0 30 From banks in the U.S 176.7 185.5 184.4 182.3 185.9 172.9 176.5 171.0 169.4 166.1 172.6 181.9 31 From others 256.5 241.9 233.0 233.4 240.9 230.0 232.6 230.5 223.2 226.0 240.9 224.1 32 Net due to related foreign offices 85.2 75.2 72.2 69.5 68.2 75.4 67.7 65.9 67.6 65.2 67.2 68.2 33 Other liabilities 117.5 129.0 122.5 125.1 126.6 141.2 148.5 149.6 152.2 151.3 144.9 148.0 34 Total liabilities 1,943.0 1,968.2 1,952.9 1,955.1 1,970.8 1,974.5 1,991.5 1,989.4 1,980.8 1,977.7 1,981.9 2,012.0 35 Residual (assets less liabilities)7 223.0 222.9 236.5 224.8 220.8 213.7 217.6 217.3 221.1 225.7 214.6 211.2 Not seasonally adjusted Assets 36 Bank credit 1,832.5 1,818.3 1,806.4 1,794.5 1,803.5 1,808.0 1,813.9 1,819.3 1,818.3 1,811.6 1,817.8 1,822.2 37 Securities in bank credit 447.3 427.2 418.8 412.9 409.1 407.4 409.8 404.6 411.7 408.0 403.1 400.8 38 U.S. government securities 315.7 296.1 292.4 289.1 287.1 286.7 287.3 282.3 288.8 285.3 282.6 277.8 39 Trading account 21.9 19.6 19.9 20.9 21.0 22.0 22.7 18.3 24.5 22.8 17.3 14.5 40 Investment acount 293.8 276.5 272.5 268.2 266.2 264.7 264.6 264.0 264.3 262.6 265.3 263.4 41 Other securities 131.6 131.0 126.4 123.7 122.0 120.6 122.5 122.3 122.9 122.7 120.6 123.0 42 Trading account 59.8 61.1 58.7 57.8 56.2 53.5 55.4 54.4 55.5 54.9 52.6 54.5 43 Investment account 71.8 69.9 67.7 65.9 65.8 67.1 67.1 68.0 67.5 67.7 68.0 68.5 44 State and local government. . 21.9 20.7 20.3 20.3 20.3 20.2 20.3 20.4 20.3 20.3 20.4 20.5 45 Other 49.9 49.2 47.4 45.6 45.5 46.9 46.8 47.5 47.2 47.4 47.6 48.1 46 Loans and leases in bank credit2 .. . 1,385.2 1,391.1 1,387.7 1,381.6 1,394.4 1,400.7 1,404.1 1,414.6 1,406.6 1,403.6 1,414.6 1,421.4 47 Commercial and industrial 366.2 374.2 373.6 371.0 376.6 379.6 380.7 381.3 381.3 378.6 381.0 382.6 48 Real estate 560.8 560.3 558.2 558.8 558.3 557.6 559.3 562.4 562.5 562.9 562.2 561.0 49 Revolving home equity 52.9 52.6 53.1 53.4 53.7 54.0 54.5 54.9 54.7 54.8 54.9 55.0 50 Other 507.9 507.8 505.1 505.5 504.5 503.7 504.8 507.5 507.8 508.1 507.2 506.1 51 Consumer 276.4 277.9 278.3 280.5 282.7 280.1 280.0 284.3 280.2 280.8 282.9 288.4 52 Security3 51.1 41.9 39.7 35.9 38.9 38.9 39.0 39.5 38.4 37.7 41.6 42.0 53 State and local government 11.5 11.1 11.2 11.2 10.9 10.9 11.2 11.2 11.3 11.4 11.2 11.2 54 All other 119.2 125.7 126.7 124.2 127.0 133.6 134.1 135.8 132.9 132.2 135.9 136.2 55 Interbank loans 122.5 133.2 129.9 127.8 129.6 126.2 137.2 133.0 139.7 132.5 132.7 131.4 56 Cash assets4 141.0 124.0 124.8 120.9 127.7 127.6 136.2 141.8 129.3 128.0 143.6 144.9 57 Other assets5 127.8 151.2 156.6 159.9 162.7 159.7 163.9 172.3 171.8 169.5 170.8 173.7 58 Total assets6 2,187.1 2,190.2 2,181.0 2,166.2 2,186.6 2,184.9 2,214.6 2,229.7 2,222.4 2,205.0 2,228.2 2,235.8 Liabilities 59 Deposits 1,328.2 1,334.7 1,337.5 1,338.2 1,349.1 1,352.4 1,373.4 1,389.7 1,383.5 1,373.8 1,374.3 1,392.8 60 Transaction 453.4 409.0 404.4 391.9 392.2 384.2 393.9 406.9 389.2 387.7 394.3 416.2 61 Nontransaction 874.8 925.7 933.1 946.3 956.9 968.2 979.5 982.8 994.3 986.1 979.9 976.6 62 Large time 122.6 134.5 136.9 141.0 144.7 151.2 153.7 152.7 153.5 152.6 151.9 151.1 63 Other 752.1 791.3 796.3 805.3 812.2 817.0 825.8 830.0 840.8 833.5 828.0 825.5 64 Borrowings 441.2 430.3 422.9 410.7 420.6 398.4 407.9 407.9 402.1 395.1 425.8 408.3 65 From banks in the U.S 187.7 184.9 183.7 176.5 175.5 168.2 177.9 182.9 183.5 180.6 185.9 185.4 66 From nonbanks in the U.S 253.6 245.3 239.2 234.2 245.2 230.2 230.0 225.0 218.5 214.5 239.9 223.0 67 Net due to related foreign offices 83.0 74.1 71.2 67.8 65.0 74.5 66.2 63.4 64.4 64.7 63.8 67.8 68 Other liabilities 115.8 129.4 122.7 123.7 126.3 141.2 148.5 149.6 152.2 151.3 144.9 148.0 69 Total liabilities 1,968.1 1,968^ 1,954.4 1,940.4 1,961.0 1,966.6 1,995.9 2,010.6 2,002.1 1,984.8 2,008.8 2,016.9 70 Residual (assets less liabilities)7 218.9 221.7 226.6 225.9 225.6 218.4 218.7 219.1 220.2 220.2 219.5 218.9 MEMO 71 Revaluation gains on off-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. 33.7 34.5 39.0 35.2 34.8 33.9 39.3 72 Revaluation losses on off-balancesheet items8 n.a. n.a. n.a n.a. n.a. 28.9 28.9 31.8 31.4 29.8 27.5 34.2 73 Mortgage-backed securities' n.a. n.a. n.a. n.a. n.a. 186.7 188.1 190.7 190.1 188.9 191.0 191.1 Digitized for FRASER Footnotes appear on page A21. 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 D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 4 Dec. 11 Dec. 18 Dec. 25 Seasonally adjusted Assets 1 Bank credit 1,342.8 1,394.7 1,405.2 1,414.2 1,421.8 1,427.5 1,433.0 1,441.5 1,435.2 1,439.2 1,440.8 1,441.1 7. Securities in bank credit 403.1 412.0 414.2 414.4 415.0 414.5 412.7 413.9 411.9 414.3 413.4 413.1 3 U.S. government securities 325.2 332.1 334.3 334.3 335.0 333.6 331.8 332.6 331.2 333.6 332.6 331.6 4 Other securities 77.8 79.8 80.0 80.0 80.0 80.9 80.9 81.3 80.7 80.7 80.8 81.5 5 Loans and leases in bank credit2 939.8 982.7 991.0 999.9 1,006.7 1,013.0 1,020.3 1,027.6 1,023.3 1,024.9 1,027.4 1,028.1 6 Commercial and industrial 167.2 175.4 176.9 178.9 180.9 182.1 183.5 185.2 184.0 184.3 184.8 185.5 7 Real estate 483.5 508.6 512.4 517.6 520.9 524.3 528.0 532.4 530.2 531.4 532.3 532.6 8 Revolving home equity 26.3 26.5 26.8 27.3 27.7 28.8 29.3 30.3 30.1 30.0 30.2 30.4 9 Other 457.2 482.0 485.6 490.3 493.1 495.5 498.8 502.2 500.1 501.4 502.1 502.2 in Consumer 220.9 229.7 232.4 233.5 234.8 237.5 238.5 239.0 238.4 238.5 239.5 238.5 li Security3 5.7 5.3 5.0 5.1 5.2 5.1 5.3 5.3 5.3 5.3 5.2 5.4 17 Other loans and leases 62.5 63.8 64.2 64.7 64.9 64.0 65.0 65.7 65.5 65.4 65.6 66.1 n Interbank loans 58.5 52.0 48.0 49.4 51.4 50.9 54.5 55.1 55.9 54.3 54.1 56.5 14 Cash assets4 62.8 66.3 64.2 65.2 64.7 65.5 66.9 67.3 66.4 66.9 66.3 68.1 15 Other assets5 50.9 50.2 55.4 55.9 57.5 58.4 60.7 60.5 62.0 61.6 61.5 61.2 16 Total assets6 1,495.1 1,542.4 1,5523 1,564.1 1,574.5 1,581.2 1,594.0 1,603.2 13983 1,600.8 1,601.4 1,605.6 Liabilities 17 Deposits 1,196.4 1,212.9 1,211.5 1,227.9 1,242.7 1,249.9 1,274.2 1,290.3 1,283.2 1,284.2 1,283.1 1,291.1 IS Transaction 334.9 327.3 321.4 322.1 323.9 322.2 325.6 328.0 323.7 325.8 323.8 330.2 19 Nontransaction 861.5 885.6 890.1 905.8 918.7 927.8 948.7 962.4 959.5 958.5 959.3 960.9 70 Large time 144.6 148.8 150.6 152.6 152.1 143.4 146.4 148.5 148.2 148.7 149.1 148.0 71 Other 716.9 736.8 739.5 753.2 766.6 784.4 802,3 813.9 811.3 809.8 810.2 812.9 22 Borrowings 138.3 155.5 162.0 168.7 168.4 162.8 160.9 157.1 157.0 154.8 159.1 157.0 23 From banks in the U.S 73.5 85.0 78.1 80.5 82.2 85.8 82.0 75.7 76.5 74.1 75.6 78.4 24 From others 64.8 70.5 83.9 88.2 86.1 76.9 78.8 81.4 80.5 80.7 83.5 78.6 25 Net due to related foreign offices 6.2 5.4 5.8 4.4 5.8 3.3 2.3 2.6 1.6 2.4 1.5 3.9 26 Other liabilities 27.9 28.1 29.0 28.0 26.5 24.5 23.5 22.0 22.8 23.1 22.7 21.9 27 Total liabilities 1,368.8 1,401.9 1,4083 1,429.0 1,443.4 1,440.5 1,460.8 1,472.1 1,464.6 1,464.5 1,4663 1,473.9 28 Residual (assets less liabilities)7 126.3 140.5 144.0 135.0 131.1 140.8 133.1 131.1 133.7 136.3 135.0 131.7 Not seasonally adjusted Assets 79 Bank credit 1,345.5 1,396.6 1,405.1 1,413.2 1,425.0 1,428.7 1,434.4 1,443.6 1,435.8 1,440.0 1,442.9 1,445.1 30 Securities in bank credit 401.8 414.3 413.5 412.9 414.9 412.5 410.9 412.5 409.3 412.3 412.3 413.2 31 U.S. government securities 324.0 334.5 333.9 333.0 334.8 331.7 329.9 331.3 328.8 331.8 331.5 331.8 37 Other securities 77.8 79.8 79.6 79.9 80.1 80.8 81.0 81.2 80.6 80.5 80.7 81.4 33 Loans and leases in bank credit2 943.6 982.3 991.5 1,000.3 1,010.2 1,016.2 1,023.5 1,031.1 1,026.5 1,027.7 1,030.6 1,031.9 34 Commercial and industrial 166.6 176.8 177.0 177.6 179.8 181.3 182.7 184.4 182.9 183.1 184.0 185.1 35 Real estate 485.5 508.4 512.5 517.6 522.4 526.2 530.6 534.3 532.1 533.6 534.1 534.6 36 Revolving home equity 26.3 26.6 26.9 27.4 28.0 29.0 29.4 30.3 30.2 30.1 30.2 30.3 37 Other 459.2 481.9 485.6 490.2 494.4 497.2 501.2 504.1 501.9 503.5 503.9 504.2 38 Consumer 222.5 228.4 232.0 234.0 236.3 238.0 239.0 240.5 239.4 239.4 241.1 240.6 39 Security3 6.0 5.1 4.9 5.1 5.1 5.1 5.5 5.6 5.8 5.7 5.5 5.4 40 Other loans and leases 63.1 63.6 65.1 66.1 66.5 65.6 65.7 66.2 66.3 65.9 65.9 66.2 41 Interbank loans 62.1 48.9 45.5 48.7 49.8 51.8 58.8 58.1 63.0 60.7 57.0 55.2 47 Cash assets4 67.0 64.6 63.8 62.9 64.5 66.3 69.2 71.2 69.1 66.4 69.3 69.9 43 Other assets5 50.4 49.0 55.3 56.2 58.2 58.9 60.1 59.9 61.5 59.4 60.1 59.1 44 Total assets6 1,505.0 1,538.4 1,549.1 1,5603 1,576.7 1,584.6 1,601.4 1,611.6 1,608.2 1,605.4 1,608.0 1,608.0 Liabilities 45 Deposits 1,205.8 1,209.4 1,210.2 1,223.9 1,242.0 1,252.0 1,279.7 1,298.4 1,293.0 1,289.4 1,289.2 1,292.5 46 Transaction 347.1 324.1 319.8 318.2 322.4 322.9 330.2 338.6 333.2 331.0 332.7 336.8 47 Nontransaction 858.7 885.3 890.5 905.7 919.7 929.1 949.5 959.8 959.8 958.3 956.5 955.7 48 Large time 142.9 148.6 150.3 152.4 152.2 143.7 146.3 146.8 147.2 147.6 147.3 146.0 49 Other 715.8 736.7 740.1 753.2 767.5 785.4 803.2 813.1 812.6 810.7 809.2 809.8 50 Borrowings 142.4 156.9 159.5 163.2 165.3 160.6 160.0 161.2 159.6 157.4 164.0 161.7 51 From banks in the U.S 79.1 85.7 75.5 75.7 77.6 82.9 81.6 81.3 81.1 79.4 81.5 82.3 5? From others 63.3 71.2 83.9 87.6 87.7 77.7 78.4 79.8 78.5 78.0 82.6 79.3 53 Net due to related foreign offices 6.3 5.2 5.7 4.4 5.9 3.4 2.2 2.7 1.3 2.4 1.6 4.2 54 Other liabilities 27.8 28.1 28.7 28.0 26,7 24.5 23.5 22.0 22.8 23.1 22.7 21.9 55 Total liabilities 1,3823 1,399.6 1,404.1 1,419.6 1,439.9 1,440.5 1,4653 1,4843 1,476.7 1,472.2 1,477.5 1,4803 56 Residual (assets less liabilities)7 122.8 138.8 145.1 140.7 136.8 144.1 136.1 127.3 131.6 133.2 130.5 127.7 MEMO 57 Mortgage-backed securities9 n.a. n.a. n.a. n.a. n.a. 49.7 50.3 51.3 50.7 50.9 50.8 51.2 Footnotes appear on page A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • March 1997 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 1995 1996 1996 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 4 Dec. 11 Dec. 18 Dec. 25 Seasonally adjusted Assets 1 Bank credit 438.1 466.1 466.0 464.7 463.9 483.4' 504.2 511.1 506.0 512.8 510.1 515.1 2 Securities in bank credit 146.4 151.6 147.4 148.6 144.0 146.9 164.2 170.4 169.9 171.3 168.5 173.7 3 U.S. government securities 67.1 79.0 79.3 81.1 82.3 82.5 88.3 88.7 88.1 87.8 87.5 91.8 4 Other securities 79.3 72.5 68.2 67.5 61.7 64.4 75.9 81.7 81.9 83.5 81.0 81.9 5 Loans and leases in bank credit2 ... 291.7 314.5 318.5 316.1 319.9" 336.5' 340.0 340.7 336.0 341.5 341.6 341.4 6 Commercial and industrial 181.6 190.0 192.4 191.7 198.4r 207.0 210.5 217.1 212.0 218.3 218.3 218.1 7 Real estate 36.0 33.2 33.1 33.1 32.9" 33.5' 33.4 33.1 33.1 33.3 33.2 33.2 8 Security3 26.7 34.7 33.2 30.8 29.3 34.8 35.6 31.8 31.4 29.7 31.4 32.6 9 Other loans and leases 47.5 56.5 59.8 60.5 59.2 61.3' 60.4 58.7 59.5 60.3 58.8 57.5 10 Interbank loans 20.1 24.3 19.3 16.9 19.5r 18.5 20.4 20.4 20.7 15.4 23.6 19.4 11 Cash assets4 30.5 25.7 27.7 27.8 27.8 28.7 30.7 31.8 32.5 32.0 31.7 31.7 12 Other assets5 47.2 39.8 39.1 40.2 38.3 33.0 35.2 36.7 37.2 38.6 35.3 36.3 13 Total assets6 535.8 555.8 552.0 549.5 549.5 563.4 590.3 599.7 596.1 598.6 600.5 602.4 Liabilities 14 Deposits 167.2 171.7 179.8 180.5 185.8 205.7 206.4' 221.0 216.1 217.9 221.9 224.4 15 Transaction 10.1 10.7 10.6 10.3 9.6 10.7 10.7 11.1 11.1 10.6 10.8 10.9 16 Nontransaction 157.0 161.0 169.2 170.1 176.2 195.0 195.7 209.9 204.9 207.4 211.1 213.5 17 Large time 151.6 161.0 166.8 168.4 173.8 191.9 193.2' 205.4 199.0 203.3 205.1 210.0 18 Other 5.5 0.0 2.4 1.7 2.3 3.1 2.5 4.6 5.9 4.1 5.9 3.4 19 Borrowings 110.3 130.2 124.9 131.7 121.8 115.7 126.3 122.4 122.1 124.2 121.3 123.5 20 From banks in the U.S 30.1 32.7 30.8 35.5 33.6 33.9 37.1 35.9 39.0 39.3 35.6 33.4 21 From others 80.2 97.5 94.0 96.2 88.2 81.8 89.2 86.5 83.1 84.9 85.7 90.1 22 Net due to related foreign offices 172.2 176.6 175.6 170.5 174.9 165.1 166.8 161.4 165.4 160.7 168.0 154.0 23 Other liabilities 84.8 69.2 67.3 65.5 65.5 72.6 80.1' 80.7 84.4 84.9 77.9 79.2 24 Total liabilities 534.4 547.7 547.5 548.2 548.0 559.0 579.6 585.5 587.9 587.8 589.1 581.1 25 Residual (assets less liabilities)7 1.4 8.1 4.5 1.3 1.5' 4.4 10.8 14.3 8.2 10.9 11.3 21.3 Not seasonally adjusted Assets 26 Bank credit 439.3 462.9 467.0 467.0 465.4 480.1' 496.3 505.2 498.7 506.2 504.6 507.4 27 Securities in bank credit 142.7 149.7 148.4 150.7 145.2 147.9 158.0 158.9 162.1 160.2 157.7 158.9 28 U.S. government securities 66.2 78.0 79.0 82.4 81.7 81.8 87.2 85.9 87.2 86.4 86.0 86.1 29 Trading account n.a. n.a. n.a. n.a. n.a. 18.6 21.8 20.0 22.5 20.7 19.3 19.1 30 Investment account n.a. n.a. n.a. n.a. n.a. 63.2 65.4 65.9 64.7 65.7 66.7 67.0 31 Other securities 76.4 71.7 69.3 68.3 63.5 66.1 70.8 73.0 74.9 73.8 71.7 72.8 32 Trading account n.a. aa. n.a. n.a. n.a. 47.8 51.7 53.8 55.9 54.6 52.3 53.6 33 Investment account n.a. n.a. n.a n.a. n.a. 18.4 19.0" 19.2 19.0 19.2 19.3 19.2 34 Loans and leases in bank credit2 .. . 296.7 313.2 318.7 316.3 320.2 332.2' 338.3 346.3 336.6 346.0 346.9 348.4 35 Commercial and industrial 181.8 190.5 193.5 192.6 197.7 204.9 209.7 216.5 211.2 215.9 217.3 219.2 36 Real estate 35.9 33.1 33.0 33.1 33.0 33.5' 33.6 33.1 33.4 33.4 33.1 33.0 37 Security3 29.8 32.5 32.0 29.8 29.1 32.9 34.7 35.6 31.4 34.7 35.4 35.9 38 Other loans and leases 49.0 57.1 60.1 60.7 60.4 60.9 60.3 61.0 60.6 62.0 61.2 60.3 39 Interbank loans 21.5 22.4 19.2 16.4 20.1' 19.8 19.8 21.6 20.9 15.8 23.8 20.4 40 Cash assets4 30.2 26.6 28.2 28.5 28.7 29.1 30.3 31.4 31.5 31.1 31.1 32.1 41 Other assets5 47.5 39.6 38.6 41.1 38.5 32.8 35.7 36.9 37.8 39.8 35.5 35.7 42 Total assets6 538J 551.4 553.0 552.9 552.6 561.6 581.9 594.9 588.7 592.7 594.8 595.4 Liabilities 43 Deposits 168.1 173.8 177.5 178.8 185.7 203.9 208.4 224.7 217.6 221.4 225.5 230.3 44 Transaction 10.5 10.4 10.6 10.3 10.2 10.8 10.8 11.6 11.2 10.6 11.6 11.6 45 Nontransaction 157.6 163.4 166.9 168.5 175.5 193.1r 197.6 213.1 206.5 210.8 213.9 218.7 46 Large time 154.9 161.0 164.5 166.3 173.2 190.6 195.0' 210.1 202.0 208.5 210.0 216.3 47 Other 2.7 2.4 2.4 2.3 2.3 2.5 2.5 3.0 4.5 2.3 3.9 2.4 48 Borrowings 109.4 134.4 130.6 133.6 123.6 113.2 122.5' 122.1 123.2 123.1 121.2 122.7 49 From banks in the U.S 31.7 34.5 32.2 35.1 33.5 31.8 36.5 37.9 40.6 41.2 38.2 34.7 50 From others 77.8 99.9 98.4 98.5 90.1 81.4 86.1 84.1 82.6 81.9 83.0 88.1 51 Net due to related foreign offices 174.9 170.2 175.0 171.2 174.3 167.2 165.7 162.0 157.8 158.1 164.2 157.6 52 Other liabilities 81.8 69.7 66.8 66.4 65.7 72.6 80.1' 80.7 84.4 84.9 77.9 79.2 53 Total liabilities 534.2 548.1 549.9 549.9 549.2 556.9 576.7 589.5 583.1 587.6 5M 589.8 54 Residual (assets less liabilities)7 4.2 3.3 3.1 3.0 3.4 4.8r 5.2 5.5 5.6 5.2 6.0 5.6 MEMO 55 Revaluation gains on off-balance-sheet items8 n.a. n.a. n.a. n.a. n.a. 35.9 38.4 38.7 34.8 32.5 31.5 32.5 56 Revaluation losses on off-balancesheet items8 n.a n.a. n.a. n.a. n.a. 29.3 31.5 32.0 33.9 31.7 31.1 31.8 Footnotes appear on page A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 NOTES TO TABLE 1.26 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 quantities of balance sheet items acquired in mergers are removed from past data for the bank statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table group that contained the acquired bank and put into past data for the group containing the 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer ratio procedure is used to adjust past levels. being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks domestically chartered banks have been included in table 1.26, parts C and D. Data are both in the United States, all of which are included in "Interbank loans." merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry branches and agencies of foreign banks have been replaced by balance sheet estimates of all securities. foreign-related institutions and are included in table 1.26, part E. These data are break- 4. Includes vault cash, cash items in process of collection, balances due from depository adjusted. institutions, and balances due from Federal Reserve Banks. The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 5. Excludes the due-from position with related foreign offices, which is included in "Net which were available as of October 2, 1996. due to related foreign offices." 1. Covers the following types of institutions in the fifty states and the District of 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for Columbia: domestically chartered commercial banks that submit a weekly report of condition transfer risk. Loans are reported gross of these items. (large domestic); other domestically chartered commercial banks (small domestic); branches 7. This balancing item is not intended as a measure of equity capital for use in capital and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the institutions). Excludes International Banking Facilities. Data are Wednesday values or pro seasonal patterns estimated for total assets and total liabilities. rata averages of Wednesday values. Large domestic banks constitute a universe; data for 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity small domestic banks and foreign-related institutions are estimates based on weekly samples and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. of assets and liabilities. government-sponsored enterprises, and private entities. The data for large and small domestic banks presented on pp. A18 and A19 are adjusted to remove the estimated effects of mergers between these two groups. The adjustment for mergers changes past levels to make them comparable with current levels. Estimated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • March 1997 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period Year ending December 1996 Item D 19 e 9 c 1 . 1 D 9 e 9 c 2 . 1 D 9 e 9 c 3 . 1 D 9 e 9 c 4 . D 19 e 9 c 5 . June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 528,832 545,619 555,075 595,382 674,904 731,027 734,731 753,276 757,155 757,718r 766,556 Financial companies1 2 Dealer-placed paper2, total . 212,999 226,456 218,947 223,038 275,815 310,524 317,426 329,026 336,833 349,288 354,400 3 Directly placed paper3, total 182,463 171,605 180,389 207,701 210,829 223,236 222,583 230,318 226,599 225,977r 228,553 4 Nonfinancial companies4 133,370 147,558 155,739 164,643 188,260 197,267 194,722 193,932 193,724 182,454 183,603 Bankers dollar acceptances (not seasonally adjusted)5 5 Total 43,770 38,194 32,348 29,835 29,242 By holder 6 Accepting banks 11,017 10,555 12,421 11,783 7 Own bills 9,347 9,097 10,707 10,462 8 Bills bought from other banks 1,670 1,458 1,714 1,321 Federal Reserve Banks6 9 Foreign correspondents 1,739 1,276 725 410 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Others 31,014 26,364 19,202 17,642 Sv basis 11 Imports into United States 12,843 12,209 10,217 10,062 12 Exports from United States 10,351 8,096 7,293 6,355 13 All other 20,577 17,890 14,838 13,417 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 5. Data on bankers dollar acceptances are gathered from approximately 100 institutions. personal, and mortgage financing; factoring, finance leasing, and other business lending; The reporting group is revised every January. Beginning January 1995, data for Bankers insurance underwriting; and other investment activities. dollar acceptances 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 Loans1 Percent per year Date of change Average Average rate rate 1994—Mar. 24 6.25 1994 7.15 1995—Jan. . 8.50 1996—Jan. . Apr. 19 6.75 1995 8.83 Feb. 9.00 Feb. May 17 7.25 1996 8.27 Mar. 9.00 Mar. Aug. 16 7.75 Apr. 9.00 Apr. Nov. 15 8.50 1994—Jan. . 6.00 May 9.00 May Feb. 6.00 June 9.00 June 1995—Feb. 1 9.00 Mar. 6.06 July . 8.80 July . July 7 8.75 Apr. 6.45 Aug. 8.75 Aug. Dec. 20 8.50 May 6.99 Sept. 8.75 Sept. June 7.25 Oct. . 8.75 Oct. . 1996—Feb. 1 July . 7.25 Nov. 8.75 Nov. Aug. 7.51 Dec. 8.65 Dec. Sept. 7.75 Oci 7.75 1997—Jan. . Nov. 8.15 Dec. 8.50 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 11999944 11999955 11999966 Sept. Oct. Nov. Dec. Nov. 29 Dec. 6 Dec. 13 Dec. 20 Dec. 27 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 4.21 5.83 5.30 5.30 5.24 5.31 5.29 5.30 5.52 5.22 5.38 5.18 2 Discount window borrowing2,4 3.60 5.21 5.02 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Commercial paper',5'6 3 1-month 4.43 5.93 5.43 5.45 5.37 5.39 5.70 5.42 5.53 5.57 5.73 5.88 4 3-month 4.66 5.93 5.41 5.52 5.43 5.41 5.51 5.42 5.42 5.44 5.52 5.61 5 6-month 4.93 5.93 5.42 5.66 5.45 5.40 5.44 5.40 5.40 5.42 5.45 5.48 Finance paper, directly placed3,5,7 6 1-month 4.33 5.81 5.31 5.33 5.25 5.25 5.41 5.24 5.35 5.39 5.46 5.46 7 3-month 4.53 5.78 5.29 5.38 5.31 5.29 5.33 5.29 5.30 5.31 5.35 5.36 8 6-month 4.56 5.68 5.21 5.40 5.28 5.23 5.25 5.22 5.22 5.24 5.26 5.28 Bankers acceptances3'5'8 9 3-month 4.56 5.81 5.31 5.39 5.32 5.29 5.35 5.29 5.30 5.33 5.39 5.40 10 6-month 4.83 5.80 5.31 5.51 5.36 5.29 5.33 5.30 5.29 5.33 5.35 5.37 Certificates of deposit, secondary market3,9 11 1-month 4.38 5.87 5.35 5.38 5.28 5.30 5.50 5.34 5.46 5.48 5.49 5.59 12 3-month 4.63 5.92 5.39 5.51 5.41 5.38 5.44 5.38 5.40 5.42 5.44 5.50 13 6-month 4.96 5.98 5.47 5.71 5.51 5.43 5.47 5.43 5.42 5.47 5.49 5.51 14 Eurodollar deposits, 3-month3,10 4.63 5.93 5.38 5.49 5.41 5.38 5.43 5.38 5.39 5.40 5.46 5.47 U.S. Treasury bills Secondary market3,5 15 3-month 4.25 5.49 5.01 5.09 4.99 5.03 4.91 5.02 4.92 4.83 4.88 4.97 16 6-month 4.64 5.56 5.08 5.24 5.11 5.07 5.04 5.06 5.02 5.00 5.06 5.08 17 1-year 5.02 5.60 5.22 5.50 5.25 5.14 5.18 5.13 5.14 5.17 5.22 5.20 Auction average3,5,11 18 3-month 4.29 5.51 5.02 5.15 5.01 5.03 4.87 5.03 4.98 4.83 4.76 4.92 19 6-month 4.66 5.59 5.09 5.29 5.12 5.07 5.02 5.07 5.04 4.97 4.99 5.08 20 1-year 5.02 5.69 5.23 5.57 5.34 5.20 5.16 n.a. n.a. 5.16 n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 5.32 5.94 5.52 5.83 5.55 5.42 5.47 5.41 5.42 5.46 5.51 5.50 22 2-year 5.94 6.15 5.84 6.23 5.91 5.70 5.78 5.65 5.66 5.77 5.85 5.84 23 3-year 6.27 6.25 5.99 6.41 6.08 5.82 5.91 5.75 5.77 5.89 5.98 5.97 24 5-year 6.69 6.38 6.18 6.60 6.27 5.97 6.07 5.90 5.92 6.06 6.15 6.12 25 7-year 6.91 6.50 6.34 6.73 6.42 6.10 6.20 6.03 6.04 6.21 6.29 6.24 26 10-year 7.09 6.57 6.44 6.83 6.53 6.20 6.30 6.12 6.15 6.31 6.40 6.34 27 20-year 7.49 6.95 6.83 7.17 6.90 6.58 6.65 6.51 6.52 6.66 6.73 6.67 28 30-year 7.37 6.88 6.71 7.03 6.81 6.48 6.55 6.41 6.43 6.56 6.63 6.58 Composite 29 More than 10 years (long-term) 7.41 6.93 6.80 7.13 6.87 6.55 6.63 6.49 6.51 6.65 6.72 6.65 STATE AND LOCAL NOTES AND BONDS Moody's series'3 30 Aaa 5.77 5.80 5.52 5.57 5.52 5.43 5.38 5.41 5.39 5.35 5.38 5.38 31 Baa 6.17 6.10 5.79 5.79 5.73 5.69 5.63 5.70 5.69 5.64 5.50 5.70 32 Bond Buyer series14 6.18 5.95 5.76 5.87 5.72 5.59 5.64 5.54 5.57 5.66 5.67 5.66 CORPORATE BONDS 33 Seasoned issues, all industries15 8.26 7.83 7.66 7.95 7.68 7.41 7.50 7.37 7.40 7.51 7.58 7.52 Rating group 34 Aaa 7.97 7.59 7.37 7.66 7.39 7.10 7.20 7.06 7.10 7.21 7.28 7.22 35 Aa 8.15 7.72 7.55 7.82 7.58 7.31 7.41 7.27 7.30 7.41 7.49 7.43 36 A 8.28 7.83 7.69 7.95 7.70 7.41 7.51 7.38 7.40 7.52 7.59 7.53 37 BBaaaa 8.63 8.20 8.05 8.35 8.07 7.79 7.89 7.75 7.79 7.90 7.97 7.91 38 AA--rraatteedd,, rreecceennttllyy ooffffeerreedd uuttiilliittyy bboonnddss''66 8.29 7.86 7.77 8.06 7.83 7.54 7.63 7.42 7.62 7.67 7.69 7.64 MEMO Dividend-price ratio17 39 Common stocks 2.82 2.56 2.19 2.20 2.11 2.01 2.01 1.97 2.00 2.02 2.04 1.99 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 Nonfinancial Statistics • March 1997 1.36 STOCK MARKET Selected Statistics 1996 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading volume (averages of daily figures)' Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 254.16 291.18 357.98 347.50 354.84 358.32 345.06 354.59 360.96 373.54 388.75 391.61 2 Industrial 315.32 367.40 453.57 441.99 452.63 458.30 438.58 444.91 459.69 473.98 490.60 494.38 3 Transportation 247.17 270.14 327.30 326.42 334.66 331.57 316.57 321.61 323.12 332.80 348.32 352.28 4 Utility 104.96 110.64 126.36 122.44 124.86 123.60 122.66 122.37 121.12 130.04 135.88 128.55 5 Finance 209.75 238.48 303.94 287.92 290.43 294.42 287.89 302.95 308.16 324.42 345.30 350.01 6 Standard & Poor's Corporation (1941-43 = 10)2 460.42 541.72 670.49 647.17 661.23 668.50 644.06 662.68 674.88 701.46 735.67 743.25 7 American Stock Exchange (Aug. 31, 1973 = 50)3 449.49 498.13 570.86 580.60 600.93 591.99 550.16 554.88 564.87 574.46 583.21 582.96 Volume of trading (thousands of shares) 8 New York Stock Exchange 290,652 345,729 409,740 419,941 404,184 392,413 398,245 333,343 400,951 420,835 443,521 431,538 9 American Stock Exchange 17,951 20,387 22,567 24,886 28,127 23,903 21,281 17,916 19,449 18,780 22,151 23,648 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers4 61,160 76,680 97,400 81,170 86,100 87,160 79,860 82,980 89,300 88,740 91,680 97,400 Free credit balances at brokers5 11 Margin accounts6 14,095 16,250 22,600 15,780 16,890 16,800 17,700 17,520 17,940 19,890 20,020 22,540 12 Cash accounts 28,870 34,340 40,430 33,100 33,760 33,775 32,935 32,680 35,360 36,610 36,650 40,430 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 6. Series initiated in June 1984. address, see inside front cover. 7. Margin requirements, stated in regulations adopted by the Board of Governors pursuant 2. In July 1976 a financial group, composed of banks and insurance companies, was added to the Securities Exchange Act of 1934, limit the amount of credit that can be used to to the group of stocks on which the index is based. The index is now based on 400 industrial purchase and carry "margin securities" (as defined in the regulations) when such credit is stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and collateralized by securities. Margin requirements on securities are the difference between the 40 financial. market value (100 percent) and the maximum loan value of collateral as prescribed by the 3. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, previous readings in half. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971. 4. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the included credit extended against stocks, convertible bonds, stocks acquired through the initial margin required for writing options on securities, setting it at 30 percent of the current exercise of subscription rights, corporate bonds, and government securities. Separate report- market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the ing of data for margin stocks, convertible bonds, and subscription issues was discontinued in required initial margin, allowing it to be the same as the option maintenance margin required April 1984. by the appropriate exchange or self-regulatory organization; such maintenance margin rules 5. Free credit balances are amounts in accounts with no unfulfilled commitments to must be approved by the Securities and Exchange Commission. brokers and are subject to withdrawal by customers on demand. 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 11999944 11999955 11999966 July Aug. Sept. Oct. Nov. Dec. U.S. budget1 1 Receipts, total 1,258,627' l,351,830r 1,453,062 103,893 99,996 157,668 99,656 97,849 148,489 2 On-budget 923,601r l,000,751r 1,085,570 75,282 71,505 125,806 73,644 70,018 119,528 3 Off-budget 335,026 351,079 367,492 28,611 28,491 31,862 26,012 27,831 28,961 4 Outlays, total l,461,731r l,515,729r 1,560,330 130,749 141,828 122,243 139,915 135,727 129,126 5 On-budget 1,181,469 l,227,065r 1,259,872 104,214 113,840 90,253 113,290 106,327 119,890 6 Off-budget 279,372 288,664 300,458 26,535 27,987 31,989 26,625 29,400 9,237 7 Surplus or deficit (-), total -203,104 -163,899r -107,268 -26,856 -41,831 35,426 -40,259 -37,878 19,362 8 On-budget -258,758 -226,314r -174,302 -28,932 -42,335 35,553 -39,646 -36,309 -362 9 Off-budget 55,654 62,415 67,034 2,076 504 -127 -613 -1,569 19,724 Source of financing (total) 10 Borrowing from the public 185,344 171,288 129,712 29,098 16,160 -5,892 15,588 45,459 -12,321 11 Operating cash (decrease, or increase (-)) 16,564 -2,007 -6,276 1,262 23,705 -31,159 18,592 -673 -6,488 12 Other2 1,196 —5,382r -16,168 -3,504 1,966 1,625 6,079 -6,908 -553 MEMO 13 Treasury operating balance (level, end of period) 35,942 37,949 44,225 36,771 13,066 44,225 25,633 26,306 32,794 14 Federal Reserve Banks 6,848 8,620 7,700 6,836 5,149 7,700 5,897 4,857 7,742 15 Tax and loan accounts 29,094 29,329 36,525 29,936 7,917 36,525 19,736 21,449 25,052 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 Nonfinancial Statistics • March 1997 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1995 1996 1996 11999955 11999966 HI H2 HI H2 Oct. Nov. Dec. RECEIPTS 1 All sources l,351,830r 1,351,830 711,003 656,865 767,099 707,551 99,656" 97,849" 148,489 2 Individual income taxes, net 590,244 656,417 307,498 292,393 347,285 323,884 53,600" 46,270" 59,423 3 Withheld 499,927 533,080 251,398 256,916 264,177 279,988 48,866 46,989 52,690 4 Nonwithheld 175,855 212,168 132,001 45,521 162,782 53,491 5,639 2,003 7,582 5 Refunds 85,538 88,897 75,959 10,058 79,735 9,604 905" 2,724" 850 Corporation income taxes 6 Gross receipts 174,422 189,055 92,132 88,302 96,480 95,364 5,654 3,522 40,436 7 Refunds 17,418 17,231 10,399 7,518 9,704 10,053 4,792 1,183 1,479 8 Social insurance taxes and contributions, net ... 484,473 509,414 261,837 224,269 277,767 240,326 36,104 39,952 40,687 9 Employment taxes and contributions2 451,045 476,361 241,557 211,323 257,446 227,777 34,428 36,967 40,057 10 Unemployment insurance 28,878 28,584 18,001 10,702 18,068 10,302 1,330 2,574 259 11 Other net receipts3 4,550 4,469 2,279 2,247 2,254 2,245 346 411 371 12 Excise taxes 57,484 54,014 27,452 30,014 25,682 27,016 3,923 4,678 4,559 13 Customs deposits 19,301 18,670 8,848 9,849 8,731 9,294 1,432 1,219 1,520 14 Estate and gift taxes 14,763 17,189 7,425 7,718 8,775 8,835 1,547 1,394 1,371 15 Miscellaneous receipts4 28,561r 25,534 16,211 11,839 12,087 12,886 2,187 1,997 1,973 OUTLAYS 16 All types l,515,729r 1,560,330 761,289 752,856 785,368 799,588 139,915" 135,727" 129,126 17 National defense 272,066 265,748 135,648 132,887r 132,600 138,319 22,284 24,911 23,085 18 International affairs 16,434 13,496 4,797 6,908 8,074 8,770 4,112 814 1,371 19 General science, space, and technology 16,724 16,709 8,611 7,969' 8,897 9,498 1,447 1,586 1,590 20 Energy 4,936 2,836 2,358 1,992 1,355 801 -207 -96 201 21 Natural resources and environment 22,078r 21,614 10,273 11,384 10,238 11,592 1,758 1,888 2,150 22 Agriculture 9,778' 9,159 4,039 3,073r 71 10,771 2,347 1,405 2,240 23 Commerce and housing credit 17,808r -10,646 -13,471 -3,941 -6,861 -6,379 -167 -4,535 -1,335 24 Transportation 39,350 39,565 18,193 20,725 18,291 21,233 3,870 3,386 3,209 25 Community and regional development 10,641 10,685 5,073 5,569r 5,237 6,114 1,247 990 706 26 Education, training, employment, and social services 54,263 52,001 25,893 26,295 26,137 26,175 4,176 4,973 3,799 27 Health 115,418 119,378 59,057 57,lllr 59,957 61,429 10,378 10,060 10,558 28 Social security and Medicare 495,701 523,901 251,975 251,386' 264,649 269,409 45,420 45,936 44,779 29 Income security 220,493r 225,989 117,190 104,760 121,032 107,046 18,144" 19,646" 17,278 3 3 1 0 V A e d t m er i a n n is s t r b a e ti n o e n f it o s f a j n u d s ti s c e e r vices 3 1 7 6 ,8 , 9 2 0r 1 6' 3 1 6 7 , , 9 5 8 4 5 8 1 8 9 , , 0 2 5 6 1 9 1 8 8 , , 0 6 9 8 2 7 1 9 8 , , 0 1 2 6 1 4 2 9 1 , , 6 1 0 3 2 3 3 1 , , 3 3 3 1 6 1 5 1 , , 1 8 5 9 6 7 3 1 , , 0 5 8 6 8 3 32 General government 13,835 11,892 5,796 7,602 4,641 6,641 1,763 200 1,687 33 Net interest5 232,169r 241,090 116,169 119,348" 120,579 122,627 21,472 20,144 19,997 34 Undistributed offsetting receipts6 -44,455 -37,620 -17,631 -26,995 -16,716 -25,196 -2,777 -2,635 -6,839 1. Functional details do not sum to total outlays for calendar year data because revisions to 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. monthly totals have not been distributed among functions. Fiscal year total for receipts and 5. Includes interest received by trust funds. outlays do not correspond to calendar year data because revisions from the Budget have not 6. Rents and royalties for the outer continental shelf, U.S. government contributions for been fully distributed across months. employee retirement, and certain asset sales. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S. 3. Federal employee retirement contributions and civil service retirement and Government, Fiscal Year 1997; monthly and half-year totals: U.S. Department of the Treadisability fund. sury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1994 1995 1996 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 4,827 4,891 4,978 5,001 5,017 5,153 5,197 5,260 5,357 2 Public debt securities 4,800 4,864 4,951 4,974 4,989 5,118 5,161 5,225 5,323 3 Held by public 3,543 3,610 3,635 3,653 3.684 3,764 3,739 3,778 n.a. 4 Held by agencies 1,257 1,255 1,317 1,321 1,305 1,354 1,422 1,447 n.a. 5 Agency securities 27 27 27 27 28 36 36 35 34 6 7 H H e e l l d d b b y y p ag u e b n li c c i es 27 0 26 0 27 0 27 0 28 0 28 8 28 8 27 8 n n . . a a . . 8 Debt subject to statutory limit 4,711 4,775 4,861 4,885 4,900 5,030 5,073 5,137 5,237 9 Public debt securities 4,711 4,774 4,861 4,885 4,900 5,030 5,073 5,137 5,237 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 5,500 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 1996 TTyyppee aanndd hhoollddeerr 11999933 11999944 11999955 11999966 Q1 Q2 Q3 Q4 1 Total gross public debt 4,535.7 4,800.2 4,988.7 5,323.2 5,117.8 5,161.1 5,224.8 5,323.2 By type 2 Interest-bearing 4,532.3 4,769.2 4,964.4 5,317.2 5,083.0 5,126.8 5,220.8 5,317.2 3 Marketable 2,989.5 3,126.0 3,307.2 3,459.7 3,375.1 3,348.4 3,418.4 3,459.7 4 Bills 714.6 733.8 760.7 777.4 811.9 773.6 761.2 777.4 5 Notes 1,764.0 1,867.0 2,010.3 2,112.3 2,014.1 2,025.8 2,098.7 2,112.3 6 Bonds 495.9 510.3 521.2 555.0 534.1 534.1 543.5 555.0 7 Nonmarketable1 1,542.9 1,643.1 1,657.2 1,857.5 1,707.9 1,778.3 1,802.4 1,857.5 8 State and local government series 149.5 132.6 104.5 101.3 96.5 97.8 95.7 101.3 9 Foreign issues2 43.5 42.5 40.8 37.4 40.4 37.8 37.5 37.4 10 Government 43.5 42.5 40.8 47.4 40.4 37.8 37.5 47.4 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 169.4 177.8 181.9 182.4 183.0 183.8 184.2 182.4 13 Government account series3 1,150.0 1,259.8 1,299.6 1,505.9 1,357.7 1,428.5 1,454.7 1,505.9 14 Non-interest-bearing 3.4 31.0 24.3 6.0 34.8 34.3 4.0 6.0 By holder4 15 U.S. Treasury and other federal agencies and trust funds 1,153.5 1,257.1 1,304.5 1,353.8 1,422.4 1,447.0 16 Federal Reserve Banks 334.2 374.1 391.0 381.0 391.0 390.9 17 Private investors 3,047.4 3,168.0 3,294.9 3,382.8 3,347.3 3,396.2 18 Commercial banks 322.2 290.1 278.3 281,0r 285.0 280.0 19 Money market funds 80.8 67.6 71.3 87.3 82.2 85.3 20 Insurance companies 234.5 240.1 250.8 n.a. 256.0 258.0 240.0 21 Other companies 213.0 226.5 228.8 229.0 230.9 249.1 n.a. 22 State and local treasuries5'6 605.9 483.4 352.2 336.8 340.0 300.0 Individuals 23 Savings bonds 171.9 180.5 185.0 185.8 186.5 186.8 24 Other securities 137.9 150.7 162.7 161.4 161.1 167.2 25 Foreign and international7 623.0 688.6r 862.1 930.3r 958.2r 11,,002277..77 26 Other miscellaneous investors6'8 658.3 840.5 903.7 915.2r 845.4r 886600..11 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 Nonfinancial Statistics • March 1997 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1996 1996, week ending Item Sept. Oct. Nov. Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 53,964 46,500 48,828 41,575 50,868 60,104 47,856 38,613 51,501 55,470 58,612 38,766 Coupon securities, by maturity 2 Five years or less 101,720 99,043 101,712 98,278 106,346 100,651 113,446 90,343 85,598 120,422 112,455 72,174 3 More than five years 47,945 53,211 62,469 56,383 64,128 68,880 57,284 62,421 56,359 65,565 68,412 34,018 4 Federal agency 33,559 30,349 33,010 28,210 30,770 30,724 35,444 33,916 34,415 33,041 36,674 35,498 5 Mortgage-backed 39,470 40,500 44,279 29,510 53,829 63,146 38,702 26,757 46,106 59,605 35,581 16,225 By type of counterparty With interdealer broker 6 U.S. Treasury 118,528 114,131 120,115 113,359 125,283 130,624 123,412 107,387 104,562 139,705 127,703 81,471 7 Federal agency 796 848 823 719 991 689 753 887 718 613 668 479 8 Mortgage-backed 13,533 14,927 16,511 10,505 20,994 21,535 13,792 12,031 14,486 19,357 13,807 5,827 With other 9 U.S. Treasury 85.100 84,624 92,894 82,877 96,059 99,011 95,173 83,991 88,895 101,752 111,776 63,487 10 Federal agency 32,763 29,502 32,187 27,491 29,779 30,035 34,692 33,029 33,698 32,428 36,006 35,019 11 Mortgage-backed 25,937 25,573 27,767 19,005 32,835 41,611 24,909 14,726 31,620 40,248 21,774 10,398 FUTURES TRANSACTIONS3 By type of deliverable security 12 U.S. Treasury bills .' 428 96 180 78 159 75 156 209 667 214 200 256 Coupon securities, by maturity 13 Five years or less 1,710 1,029 1,423 1,063 1,064 826 1,310 2,215 1,859 2,910 1,557 979 14 More than five years 14,057 11,938 14,514 13,339 13,309 16,479 13,479 15,278 12,821 17,869 14,013 10,116 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 3,555 3,143 2,345 3,114 3,850 2,238 1,872 1,643 2,637 1,877 1,137 1,638 19 More than five years 3,924 4,548 4,881 4,319 5,374 6,661 4,620 3,583 3,577 3,928 4,408 3,777 20 Federal agency 0 0 0 0 0 0 0 0 0 0 0 0 21 Mortgage-backed 1,132 1,113 874 719 945 1,399 608 729 548 653 602 129 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgage- Major changes in the report form filed by primary dealers induced a break in the dealer data backed agency securities include purchases and sales for which delivery is scheduled in thirty business series as of the week ending July 6, 1994. days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1996 1996, week ending Sept. Oct. Nov. Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 4,530 607 8,847 1,006 383 12,706 11,838 5,751 17,011 22,945 15,313 Coupon securities, by maturity 2 Five years or less -3,592 384 5,631 557 11,898 961 9,466 2,476 2,409 -8,909 -9,597 3 More than five years -21,281 -17,347 -17,797 -17,883 -15,199 -17,666 -19,061 -18,243 -19,313 -21,141 -21,893 4 Federal agency 20,899 25,339 25,228 26,197 25,729 27,827 22,520 25,511 23,818 26,366 24,945 5 Mortgage-backed 36,981 39,361 42,015 40,855 43,646 44,320 41,239 40,135 39,571 45,233 45,617 NET FUTURES POSITIONS4 By type of deliverable security 6 U.S. Treasury bills -963 -1,315 -1,872 -1,707 -1,720 -1,959 -1,831 -1,598 -2,705 -1,890 -2,467 Coupon securities, by maturity 7 Five years or less 1,741 667 -1,285 86 -90 -367 -2,319 -1,777 -2,261 349 843 8 More than five years -7,520 -10,401 -15,889 -12,170 -15,377 -14,422 -18,630 -15,519 -14,802 -14,088 -13,260 9 Federal agency 0 0 0 0 0 0 0 0 0 0 0 10 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 NET OPTIONS POSITIONS By type of deliverable security 11 U.S. Treasury bills 0 0 0 0 0 0 0 0 n.a. 0 0 Coupon securities, by maturity 12 Five years or less -992 -1,261 -1,779 50 -1,765 -2,591 -1,853 -568 -2,569 -2,146 -2,914 13 More than five years -1,021 -1,433 423 -2,325 -1,050 -432 1,189 1,501 1,061 1,791 1,491 14 Federal agency 0 0 0 0 0 0 0 0 0 0 0 15 Mortgage-backed 1,620 2,343 1,585 2,914 1,376 1,174 2,088 1,949 941 1,179 654 Financing5 Reverse repurchase agreements 16 Overnight and continuing 269,777 253,416 264,568 248.408 259,323 258,190 287,053 243,528 286,573 265,542 248,671 17 Term 450,345 501,087 487,521 527,486 535,831 542,617 433,133 473,483 422,001 455,010 448,479 Securities borrowed 18 Overnight and continuing 187,938 182,236 190,289 180,066 182,134 189,731 196,070 189,354 196,596 196,915 194,548 19 Term 66,776 74,103 69,201 73,923 74,647 73,361 64,746 66,717 64,794 71,510 74,074 Securities received as pledge 20 Overnight and continuing 4,067 3,778 3,805 3,467 3,429 3,456 3,908 4,217 4,172 4,909 5,311 21 Term 59 41 140 39 146 147 108 166 122 127 129 Repurchase agreements 22 Overnight and continuing 566,786 572,193 577,005 568,125 587,925 589,545 606,286 512,594 607,879 593,342 579,589 23 Term 391,841 445,809 447,089 478,488 482,670 491,467 387,544 466,185 366,756 406,167 401,929 Securities loaned 24 Overnight and continuing 3,864 3,860 3,646 4,104 4,172 3,468 3,364 3,827 3,248 3,120 3,061 25 Term 3,567 3,566 3,613 n.a. 3,553 3,664 n.a. n.a. n.a. n.a. n.a. Securities pledged 26 Overnight and continuing 44,798 43,365 49,960 42,919 44,317 48,605 52,942 51,575 53,681 54,641 55,184 27 Term 6,752 6,843 4,294 6,364 7,406 7,487 1,405 2,536 1,462 1,440 1,378 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 14,912 13,787 14,254 14,113 16,203 15,259 15,037 11,457 12,708 14,557 8,212 MEMO: Matched book6 Securities in 31 Overnight and continuing 263,184 252,532 264,391 248,308 258,048 257,765 287,100 247,541 278,870 267,009 255,178 32 Term 446,548 498,543 479,031 523,420 529,751 532,284 427,813 462,192 412.129 454,641 446,507 Securities out 33 Overnight and continuing 359,468 362,320 357,386 347,735 371,154 373,086 379,899 306,897 358,492 352,896 338,440 34 Term 349,869 398,155 394,147 430,485 431,378 439,326 337,720 402,899 325,513 354,481 348,847 1. Data for positions and financing are obtained from reports submitted to the Federal 4. Futures positions reflect standardized agreements arranged on an exchange. All futures Reserve Bank of New York by the U.S. government securities dealers on its published list of positions are included regardless of time to delivery. primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar 5. Overnight financing refers to agreements made on one business day that mature on the days of the report week are assumed to be constant. Monthly averages are based on the next business day; continuing contracts are agreements that remain in effect for more than one number of calendar days in the month. business day but have no specific maturity and can be terminated without advance notice by 2. Securities positions are reported at market value. either party; term agreements have a fixed maturity of more than one business day. Financing 3. Net outright positions include immediate and forward positions. Net immediate posi- data are reported in terms of actual funds paid or received, including accrued interest. tions include securities purchased or sold (other than mortgage-backed agency securities) that 6. Matched-book data reflect financial intermediation activity in which the borrowing and have been delivered or are scheduled to be delivered in five business days or less and lending transactions are matched. Matched-book data are included in the financing break- "when-issued" securities that settle on the issue date of offering. Net immediate positions for downs given above. The reverse repurchase and repurchase numbers are not always equal mortgage-backed agency securities include securities purchased or sold that have been because of the "matching" of securities of different values or different types of collateralizadelivered or are scheduled to be delivered in thirty business days or less. tion. Forward positions reflect agreements made in the over-the-counter market that specify NOTE, "n.a." indicates that data are not published because of insufficient activity. delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt Major changes in the report form filed by primary dealers induced a break in the dealer data securities are included when the time to delivery is more than five business days. Forward series as of the week ending July 6, 1994. contracts for mortgage-backed agency securities are included when the time to delivery is more than thirty business days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 DomesticN onfinancial Statistics • March 1997 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1996 AAggeennccyy 11999922 11999933 11999944 11999955 June July Aug. Sept. Oct. 1 Federal and federally sponsored agencies 483,970 570,711 738,928 844,611 879,355 885,400 892,294 896,670 901,089 i Federal agencies 41,829 45,193 39,186 37,347 31,448 30,939 30,730 30,599 30,800 3 Defense Department1 7 6 6 6 6 6 6 6 6 4 Export-Import Bank2-3 7,208 5,315 3,455 2,050 1,853 1,853 1,853 1,828 1,828 5 Federal Housing Administration4 374 255 116 97 62 62 78 82 82 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. / Postal Service6 10,660 9,732 8,073 5,765 n.a. n.a. n.a. n.a. n.a. 8 Tennessee Valley Authority 23,580 29,885 27,536 29,429 29,465 28,956 28,793 28,683 28,884 9 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Federally sponsored agencies7 442,141 523,452 699,742 807,264 847,807 854,461 861,564 866,071 870,289 11 Federal Home Loan Banks 114,733 139,512 205,817 243,194 249,240 251,169 253,847 254,920 253,836 12 Federal Home Loan Mortgage Corporation 29,631 49,993 93,279 119,961 143,363 146,534 148,729 146,954 148,435 13 Federal National Mortgage Association 166,300 201,112 257,230 299,174 308,385 310,503 312,374 319,153 321,110 14 Farm Credit Banks8 51,910 53,123 53,175 57,379 62,182 60,294 60,219 60,126 59,712 15 Student Loan Marketing Association9 39,650 39,784 50,335 47,529 44,718 46,053 46,459 44,962 47,225 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 63,654 62,233 61,971 62,846 61,051 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 7,202 5,309 3,449 2,044 1,847 1,847 1,847 1,822 1,822 21 Postal Service6 10,440 9,732 8,073 5,765 n.a. n.a. 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. 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. n.a. Other lending14 25 Farmers Home Administration 42,979 38,619 33,719 21,015 20,625 19,575 19,757 18,700 18,700 26 Rural Electrification Administration 18,172 17,578 17,392 17,144 16,952 16,844 16,847 16,751 16,753 27 Other 64,436 45,864 37,984 29,513 24,230 23,967 23,520 25,573 23,776 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 Markets and Corporate Finance A31 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1996r TTyyppee ooff oo iiss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11999933 11999944 11999955 May June July Aug. Sept. Oct. Nov. Dec. 1 All issues, new and refunding' 279,945 153,950 145,657 15,736 17,481 11,643 12,493 11,693 16,750 14,520 17,354 By type of issue 2 General obligation 90,599 54,404 56,980 5,526 6,707 4,345 4,074 3,024 5,467 5,134 4,755 3 Revenue 189,346 99,546 88,677 10,210 10,774 7,298 8,419 8,669 11,283 9,386 12,599 By type of issuer 4 State 27,999 19,186 14,665 2,803 1,074 671 376 874 1,769 1,351 663 5 Special district or statutory authority 178,714 95,896 93,500 10,386 10,700 7,241 8,433 8,137 10,923 9,091 12,238 6 Municipality, county, or township 73,232 38,868 37,492 2,547 5,707 3,731 3,684 2,682 4,058 4,078 4,453 7 Issues for new capital 91,434 105,972 102,390 9,342 13,998 8,602 7,093 7,837 12,113 8,656 12,588 By use of proceeds 8 Education 16,831 21,267 23,964 2,910 3,356 2,206 2,337 1,522 2,693 1,530 2,306 9 Transportation 9,167 10,836 11,890 871 1,399 580 622 850 2,907 1,164 736 10 Utilities and conservation 12,014 10,192 9,618 1,302 839 716 417 720 1,441 1,102 1,006 11 Social welfare 13,837 20,289 19,566 1,600 3,114 2,222 2,348 2,100 1,573 1,974 3,294 12 Industrial aid 6,862 8,161 6,581 301 708 396 274 439 556 460 1,081 13 Other purposes 32,723 35,227 30,771 2,358 4,582 2,482 1,095 2,206 2,943 2,426 4,165 1. Par amounts of long-term issues based on date of sale. SOURCE. Securities Data Company beginning January 1990; Investment Dealer's 2. Includes school districts. Digest before then. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1996 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999933 11999944 11999955 oorr iissssuueerr Apr. May June July1 Aug. Sept. Oct/ Nov. 1 All issues1 769,088 583,240 n.a. 49,039r 69,25lr 66,861r 40,152 43,893r 60,449r 57,414 56,549 2 Bonds2 646,634 498,039 n.a. 36,334 55,814 53,926r 32,503 38,215r 53,896r 44,648 43,427 By type of offering 3 Public, domestic 487.029 365,222 408,806 30,574 46,745 44,925r 26,491 32,135r 44,678r 38,136 3388,,009988 4 Private placement, domestic 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 5,759 9,069 9,001 6,012 6,08 lr 9,218 6,512 5,329 By industry group 6 Manufacturing 88,160 43,423 42,950 2,503 5,887 6,009 4,066 2,882 4,030 6,673 4,086 7 Commercial and miscellaneous 58,559 40,735 37,139 2,664 4,933 4,272 2,662 2,611 3,170 4,845 4,051 8 Transportation 10,816 6,867 5,727 120 819 906 535 293 620 436 270 9 Public utility 56,330 13,322 11,974 444 691 1,144 1,046 129 229 799 424 10 Communication 31,950 13,340 18,158 724 1,097 2,231 647 1,450 829 700 425 11 Real estate and financial 400,820 380.352 369,769 29,879 42,386 39,365r 23,547 30,85 lr 45,018r 31,196 34,171 12 Stocks2 122,454 85,155 n.a. 12,735r 13,537r 13,014r 7,703 5,742r 6,655r 12,766 13,122 By type of offering 13 Public preferred 18,897 12,570 10,964 2,000 1,660 3,286r 1,779 1,164 1,890 3,855 5,656 14 Common 82,657 47.828 57,809 10,735r 1 l,877r 9,728r 5,924 4,578r 4,765r 8,905 7,467 15 Private placement3 20,900 24,800 n.a. 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 f 4,000r 2,494r 2,662r 1,724 1,013r 782r 1,541 1,564 17 Commercial and miscellaneous 25 761 15,713 T 4,13Ir 6,003r 6,690r 2,654 2,142r 3,077r 5,772 3,836 18 Transportation 2,237 2,203 n.a. 37 322 197 104 143 0 42 355 19 Public utility 7,050 2,214 1 15 lr 297 569 299 306 212r 100 210 20 Communication 3,439 494 1 149r 1,205 837 1,083 51 0 526 42 21 Real estate and financial 61,004 46,733 1 4,267 3,216 2,059r 1,839 2,089r 2,584r 4,786 7,114 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 • March 1997 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets' Millions of dollars 1996 IItteemm 11999944 11999955 Apr. May June July Aug. Sept. Oct.r Nov. 1 Sales of own shares2 841,286 871,415 101,310 96,501 88,115 93,053 86,225 84,171 92,730 87,958 2 Redemptions of own shares 699,823 699,497 81,005 69,419 69,072 76,485 64,993 65,601 72,537 65,949 3 Net sales3 141,463 171,918 20,305 27,082 19,044 16,568 21,232 18,570 20,193 22,009 4 Assets4 1,550,490 2,067,337 2,293,491 2,356,307 2,363,024 2,297,216 2,366,030 2,474,339 2,517,049 2,652,884 5 Cash5 121,296 142,572 148,777 145,554 144,275 148,647 155,129 156,689 149,937 146,044 6 Other 1,429,195 1,924,765 2,144,713 2,201,752 2,218,749 2,147,337 2,210,901 2,317,651 2,367,112 2,506,840 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 464.4 529.5 586.6 570.9 560.0 562.3 612.5 611.8 645.1 655.8 661.2 2 Profits before taxes 464.3 531.2 598.9 572.4 594.5 589.6 607.2 604.2 642.2 644.6 635.6 3 Profits-tax liability 163.8 195.3 218.7 213.5 217.3 214.2 224.5 218.7 233.4 236.4 233.4 4 Profits after taxes 300.5 335.9 380.2 358.8 377.2 375.3 382.8 385.5 408.8 408.1 402.2 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 103.2 124.8 152.8 140.3 155.5 150.8 154.3 150.8 168.9 165.1 156.9 7 Inventory valuation -6.6 -13.3 -28.1 -22.8 -51.9 -42.3 -9.3 -8.8 -17.4 -11.0 2.0 8 Capital consumption adjustment 6.7 11.6 15.9 21.3 17.4 15.0 14.6 16.5 20.4 22.3 23.6 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 A33 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1995 1996 AAccccoouunntt 11999933 11999944 11999955 QL Q2 Q3 Q4 QL Q2 Q3 ASSETS 1 Accounts receivable, gross2 482.8 551.0 614.6 568.5 586.9 594.7 614.6 621.8 631.4 636.1 2 Consumer 116.5 134.8 152.0 135.8 141.7 146.2 152.0 151.9 154.6 155.9 3 Business 294.6 337.6 375.9 351.9 361.8 362.4 375.9 380.9 383.7 383.5 4 Real estate 71.7 78.5 86.6 80.8 83.4 86.1 86.6 89.1 93.1 96.7 5 LESS; Reserves for unearned income 50.7 55.0 63.2 58.9 62.1 61.2 63.2 61.5 59.6 57.3 6 Reserves for losses 11.2 12.4 14.1 12.9 13.7 13.8 14.1 14.2 14.1 14.4 7 Accounts receivable, net 420.9 483.5 537.3 496.7 511.1 519.7 537.3 546.1 557.7 564.4 8 All other 170.9 183.4 210.7 194.6 198.1 198.1 210.7 212.8 216.1 224.9 9 Total assets 591.8 666.9 748.0 691.4 709.2 717.8 748.0 758.9 773.8 789.3 LIABILITIES AND CAPITAL 10 Bank loans 25.3 21.2 23.1 21.0 21.5 21.8 23.1 23.5 26.2 27.5 11 Commercial paper 159.2 184.6 184.5 181.3 181.3 178.0 184.5 184.8 186.9 189.4 Debt 12 Owed to parent 42.7 51.0 62.3 52.5 57.5 59.0 62.3 62.3 68.4 72.0 13 Not elsewhere classified 206.0 235.0 284.7 254.4 264.4 272.1 284.7 291.4 301.3 305.0 14 All other liabilities 87.1 99.5 106.2 102.5 102.1 102.4 106.2 105.7 100.1 102.7 15 Capital, surplus, and undivided profits 71.4 75.7 87.2 79.7 82.5 84.4 87.2 91.1 90.9 92.7 16 Total liabilities and capital 591.8 666.9 748.0 691.4 709.2 717.8 748.0 758.9 773.8 789.3 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. 1.52 DOMESTIC FINANCE COMPANIES Consumer, Real Estate, and Business Credit1 Millions of dollars, amounts outstanding, end of period 1996 TTyyppee ooff ccrreeddiitt June July Aug. Sept. Oct. Nov. Seasonally adjusted 1 Total 546,103 615,618 691,616 724,845r 729,747r 738,487r 739,183r 746,779r 755,192 2 Consumer 160,227 176,085 198,861 210,507r 21 l,988r 212,105r 212,979r 212,510r 212,775 3 Real estate2 72,043 78,910 87,077 96,644 97,023 99,806 100,317 103,275r 105,460 4 Business 313,833 360,624 405,678 417,694 420,736 426,576 425,887 430,993r 436,957 Not seasonally adjusted 5 Total 550,751 620,975 697,340 727,907r 723,049r 732,117r 735,269r 745,597r 755,217 6 Consumer 162,770 178,999 202,101 210,017r 209,959r 21 l,342r 213,827r 213,025r 214,227 7 Motor vehicles 56,057 61,609 70,061 74,936 75,736 74,433 76.333 75,916 75,303 8 Other consumer3 60,396 73,221 81,988 79,474 79,112 78,928 78,451 77,527 77,868 9 Securitized motor vehicles4 36,024 31,897 33,633 35,179r 34,38 lr 35,830r 34,846r 34,603r 34,177 10 Securitized other consumer4 10,293 12,272 16,419 20,428 20,730 22,151 24,197 24,979 26,879 11 Real estate2 71,727 78,479 86,606 95,803 97,276 100,295 100,182 103,527r 105,628 12 Business 316,254 363,497 408,633 422,087 415,814 420,480 421,260 429,045r 435,362 13 Motor vehicles 95,173 118,197 133,277 136,757 133,325 135,063 138,615 140,057 142,394 14 Retail loans5 18,091 21,514 25,304 29,033 28,649 28,404 28,875 29,072 28,794 15 Wholesale loans6 31,148 35,037 36,427 32,095 26,888 28,188 30,294 30,982 33,197 16 Leases 45,934 61,646 71,546 75,629 77,788 78,471 79,446 80,003 80,403 17 Equipment 145,452 157,953 177,297 184,396 183,119 182,816 181,111 177,762' 177,740 18 Loans7 43,514 49,358 59,109 58,788 57,216 55,528 56,132 56,703 56,085 19 Leases 101,938 108,595 118,188 125,608 125,903 127,288 124,979 121,059r 121,655 20 Other business8 53,997 61,495 65,363 64,987 64,397 68,367 67,290 74,255 75,798 21 Securitized business assets4 21,632 25,852 32,696 35,947 34,973 34,234 34,244 36,971 39,430 22 Retail loans 2,869 4,494 4,723 4,688 4,613 4,700 4,600 4,650 5,402 23 Wholesale loans 10,584 14,826 21,327 24,868 23,988 23,151 23,170 23,183 23,391 24 Leases 8,179 6,532 6,646 6,391 6,372 6,383 6,474 9,138 10,637 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 • March 1997 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1996 IItteemm 11999944 11999955 11999966 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 170.4 175.8 182.4 180.1 194.0 184.8 187.1 183.9 188.1 170.8 2 Amount of loan (thousands of dollars) 130.8 134.5 139.2 139.4 144.2 141.1 141.7 139.0 143.3 129.9 3 Loan-to-price ratio (percent) 78.8 78.6 78.2 78.7 76.2 77.7 77.2 77.7 78.0 79.3 4 Maturity (years) 27.5 27.7 27.2 25.8 26.7 27.2 27.7 27.4 27.4 27.5 5 Fees and charges (percent of loan amount)2 1.29 1.21 1.21 1.31 1.25 1.38 1.28 1.11 1.19 1.01 Yield (percent per year) 6 Contract rate1 7.26 7.65 7.56 7.75 7.80 7.85 7.77 7.76 7.60 7.63 7 Effective rate1'3 7.47 7.85 7.77 8.05 8.01 8.08 7.98 7.95 7.80 7.79 8 Contract rate (HUD series)4 8.58 8.05 8.03 8.37 8.28 8.45 8.23 8.01 7.73 7.91 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 8.68 8.18 8.19 8.55 8.56 8.58 8.56 8.00 8.14 8.06 10 GNMA securities6 7.96 7.57 7.48 7.91 7.84 7.68 7.85 7.53 7.19 7.33 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 222,057 253,511 287,052 270,042 272,458 275,133 278,003 279,544 283,835 287,052 12 FHA/VA insured 27,558 28,762 30,592 30,936 30,830 30,803 30,840 30,815 30,744 30,592 13 Conventional 194,499 224,749 256,460 239,106 241,628 244,330 247,163 248,729 253,091 256,460 14 Mortgage transactions purchased (during period) 62,389 56,598 68,618 5,421 5,345 5,360 5,353 4,235 6,805 6,178 Mortgage commitments (during period) 15 Issued7 54,038 56,092 65,859 5,280 5,036 5,673 4,264 5,199 6,533 3,991 16 To sell8 1,820 360 130 0 0 0 53 0 4r 28 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 72,693 107,424 137,755 123,806 125,574 127,345 129,426 132,259r 135,270 137,755 18 FHA/VA insured 276 267 220 209 205 201 197 227r 223r 220 19 Conventional 72,416 107,157 137,535 123,597 125,369 127,144 129,229 132,032r 135,047r 137,535 Mortgage transactions (during period) ?() Purchases 124,697 98,470 128,566 10,266 9,934 9,643 8,687 9,538 9,198 9,943 21 Sales 117,110 85,877 119,702 9,969 9,496 8,994 8,167 8,797 8,456 9,220 22 Mortgage commitments contracted (during period)9 136,067 118,659 128,995 11,164 10,626 8,992 9,315 8,214 9,032 9,905 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 Q3 Q4 Qi Q2 Q3P 1 All holders 4,091,827 4,266,932 4,472,718 4,657,899 4,706,615 4,781,996 4,869,404 4,949,067 By type of property 2 One- to four-family residences 3,036,251 3,225,545 3,429,424 3,587,143 3,626,329 3,689,189 3,757,694 3,824,932 3 Multifamily residences 274,234 270,824 275,705 284,201 287,994 291,893 296,974 301,129 4 Nonfarm, nonresidential 700,604 689,365 684,618 702,202 707,673 715,696 728,193 735,659 5 80,738 81,198 82,971 84,352 84,620 85,217 86,543 87,347 By type of holder 6 Major financial institutions 1,769,187 1,768,093 1,815,845 1,895,350 1,888,970 1,901,524 1,925,040 1,951,812 7 Commercial banks2 894,513 940,595 1,004,322 1,072,844 1,080,366 1,087,207 1,099,585 1,112,970 8 One- to four-family 507,780 556,660 611,391 661,907 663,614 665,935 670,735 676,753 9 Multifamily 38,024 38,657 39,360 42,894 43,842 44,700 45,127 45,753 10 Nonfarm, nonresidential 328,826 324,413 331,004 344,219 349,081 352,641 359,162 365,640 11 Farm 19,882 20,866 22,567 23,824 23,829 23,931 24,561 24,825 12 Savings institutions3 627,972 598,437 596,191 604,614 596,789 602,631 612,889 627,999 13 One- to four-family 489,622 470,000 477,626 488,869 482,351 489,634 499,021 513,133 14 Multifamily 69,791 67,367 64,343 63,605 61,988 60,540 60,809 61,444 15 Nonfarm, nonresidential 68,235 60,765 53,933 51,849 52,162 52,155 52,739 53,102 16 Farm 324 305 289 291 288 302 320 320 17 Life insurance companies 246,702 229,061 215,332 217,892 211,815 211,686 212,565 210,842 18 One- to four-family 11,441 9,458 7,910 7,701 7,476 7,472 7,503 7,440 19 Multifamily 27,770 25,814 24,306 24,638 23,920 23,906 24,007 23,802 20 Nonfarm, nonresidential 198,269 184,305 173,539 175,910 170,783 170,681 171,402 169,944 21 Farm 9,222 9,484 9,577 9,643 9,636 9,627 9,653 9,656 22 Federal and related agencies 286,263 327,014 319,327 314,353 313,760 312,950 314,694 311,697 23 Government National Mortgage Association 30 22 6 2 2 2 2 2 24 One- to four-family 30 15 6 2 2 2 2 2 25 Multifamily 0 7 0 0 0 0 0 0 26 Farmers Home Administration4 41,695 41,386 41,781 41,858 41,791 41,594 41,547 41,575 27 One- to four-family 16,912 15,303 13,826 12,914 12,643 12,327 11,982 11,630 28 Multifamily 10,575 10,940 11,319 11,557 11,617 11,636 11,645 11,652 29 Nonfarm, nonresidential 5,158 5,406 5,670 6,096 6,248 6,365 6,552 6,681 30 Farm 9,050 9,739 10,966 11,291 11,282 11,266 11,369 11,613 31 Federal Housing and Veterans' Administrations 12,581 12,215 10,964 9,535 9,809 8,439 8,052 6,627 32 One- to four-family 5,153 5,364 4,753 4,918 5,180 4,228 3,861 3,190 33 Multifamily 7,428 6,851 6,211 4,617 4,629 4,211 4,191 3,438 34 Resolution Trust Corporation 32,045 17,284 10,428 4,889 1,864 0 0 0 35 One- to four-family 12,960 7,203 5,200 2,299 691 0 0 0 36 Multifamily 9,621 5,327 2,859 1,420 647 0 0 0 37 Nonfarm, nonresidential 9,464 4,754 2,369 1,170 525 0 0 0 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 0 14,112 7,821 5,015 4,303 .5,553 5,016 4,025 40 One- to four-family 0 2,367 1,049 618 492 839 840 675 41 Multifamily 0 1,426 1,595 722 428 1,099 955 766 42 Nonfarm, nonresidential 0 10,319 5,177 3,674 3,383 3,616 3,221 2,584 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 137,584 166,642 178,059 182,229 183,782 183,531 186,041 185,221 45 One- to four-family 124,016 151,310 162,160 166,393 168,122 167,895 170,572 170,083 46 Multifamily 13,568 15,332 15,899 15,836 15,660 15,636 15,469 15,138 47 Federal Land Banks 28,664 28,460 28,555 28,151 28,428 28,891 29,362 29,579 48 One- to four-family 1,687 1,675 1,671 1,656 1,673 1,700 1,728 1,740 49 Farm 26,977 26,785 26,885 26,495 26,755 27,191 27,634 27,839 50 Federal Home Loan Mortgage Corporation 33,665 46,892 41,712 42,673 43,781 44,939 44,674 44,668 51 One- to four-family 31,032 44,345 38,882 39,239 39,929 40,877 40,477 40,304 52 Multifamily 2,633 2,547 2,830 3,434 3,852 4,062 4,197 4,364 53 Mortgage pools or trusts5 1,433,183 1,562,925 1,717,991 1,795,041 1,853,607 1,894,686 1,946,135 1,987,981 54 Government National Mortgage Association 419,516 414,066 450,934 463,654 472,292 475,829 485,441 497,248 55 One- to four-family 410,675 404,864 441,198 453,114 461,447 464,650 473,950 485,303 56 Multifamily 8,841 9,202 9,736 10,540 10,845 11,179 11,491 11,945 57 Federal Home Loan Mortgage Corporation 407,514 447,147 490,851 503,370 515,051 524,327 536,671 545,608 58 One- to four-family 401,525 442,612 487,725 500,417 512,238 521,722 534,238 543,341 59 Multifamily 5,989 4,535 3,126 2,953 2,813 2,605 2,433 2,267 60 Federal National Mortgage Association 444,979 495,525 530,343 559,585 582,959 599,546 621,285 636,362 61 One- to four-family 435,979 486,804 520,763 548,400 569,724 585,527 606,271 619,869 62 Multifamily 9,000 8,721 9,580 11,185 13,235 14,019 15,014 16,493 63 Farmers Home Administration4 38 28 19 12 11 10 9 7 64 One- to four-family 8 5 3 2 2 1 1 0 65 Multifamily 0 0 0 0 0 0 0 0 66 Nonfarm, nonresidential 17 13 9 5 5 5 4 4 67 Farm 13 10 7 5 4 4 4 3 68 Private mortgage conduits 161,136 206,159 245,844 268,420 283,294 294,974 302,729 308,756 69 One- to four-family6 139,637 171,988 194,145 207,679 214,635 219,392 221,380 224,280 70 Multifamily 6,305 8,701 14,925 18,903 21,279 24,477 26,809 28,141 71 Nonfarm, nonresidential 15,194 25,469 36,774 41,838 47,380 51,104 54,541 56,336 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 603,194 608,901 619,555 653,155 650,279 672,835 683,535 697,576 74 One- to four-family 447,795 455,572 461,117 491,015 486,111 506,987 515,134 527,190 75 Multifamily 64,688 65,398 69,615 71,896 73,239 73,823 74,826 75,926 76 Nonfarm, nonresidential 75,441 73,922 76,142 77,441 78,105 79,129 80,573 81,369 77 15,270 14,009 12,681 12,804 12,824 12,896 13,002 13,091 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 DomesticN onfinancial Statistics • March 1997 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 1996 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999933 11999944 11999955 June Julyr Aug/ Sept.r Oct.r Nov. Seasonally adjusted 11 TToottaall 844,118 966,457 1,103,296 l,156,661r 1,170,438 1,176,754 1,176,661 1,183,247 1,190,564 22 AAuuttoommoobbiillee 279,786 317,182 350,848 367,692r 374,327 374,892 376,239 377.222 377,706 33 RReevvoollvviinngg 287,011 339,337 413,894 445,104 452,097 454,625 455,369 456,801 460,049 44 OOtthheerr22 277,321 309,939 338,554 343,865r 344,014 347,237 345,053 349.223 352,808 Not seasonally adjusted 5 Total 863,924 990,247 1,131,881 l,149,500r 1,160,686 1,173,596 1,180,698 1,185,027 1,198,453 By major holder 6 Commercial banks 399,683 462,923 507,753 507,587 511,879 518,445 517,968 519,706 522,507 7 Finance companies 116,453 134,830 152,624 153,760r 154,848 153,361 154,784 153,443 153,171 8 Credit unions 101,634 119,594 131,939 136,055 138,249 140,635 141,968 144,423 145,145 9 Savings institutions 37,855 38,468 40,106 41,089 42,100 42,200 43,000 43,800 44,600 10 Nonfinancial business3 77,229 86,621 85,061 72,018 71,148 71,021 68,570 67,924 69,710 11 Pools of securitized assets4 131,070 147,811 214,398 238,991r 242,462 247,934 254,408 255,731 263,320 By major type of creditf 12 Automobile 281,538 319,715 354,055 366,202r 373,146 376,347 379,677 381,528 381,893 13 Commercial banks 122,000 141,895 149,094 152,921 154,639 155,984 155,443 155,643 155,958 14 Finance companies 56,057 61,609 70,626 74,286 75,736 74,433 76,333 75,916 75,303 15 Pools of securitized assets4 39,561 36,376 44,411 45,344r 46,397 47,401 47,807 47,693 47,916 16 Revolving 302,201 357,307 435,674 440,229 445,715 451,664 455,303 456,289 463,707 17 Commercial banks 149,920 182,021 210,298 204,049 207,926 211,026 213,809 214,638 215,013 18 Nonfinancial business3 50,125 56,790 53,525 42,574 41,715 41,258 38,816 38,105 39,275 19 Pools of securitized assets4 80,242 96,130 147,934 168,844 170,966 174,026 177,406 178,101 183,560 20 Other 280,185 313,225 342,152 343,069r 341,825 345,585 345,718 347,210 352,853 21 Commercial banks 127,763 139,007 148,361 150,617 149,314 151,435 148,716 149,425 151,536 22 Finance companies 60,396 73,221 81,998 79,474r 79,112 78,928 78,451 77,527 77,868 23 Nonfinancial business3 27,104 29,831 31,536 29,444 29,433 29,763 29,754 29,819 30,435 24 Pools of securitized assets4 11,267 15,305 22,053 24,803 25,099 26,507 29,195 29,937 31,844 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 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks2 1 48-month new car 8.09 8.12 9.57 8.93 n.a. n.a. 9.11 9.03 2 24-month personal 13.47 13.19 13.94 13.52 n.a. n.a. 13.37 n.a. n.a. 13.62 Credit card plan 3 All accounts n.a. 15.69 16.02 15.44 n.a. n.a. 15.65 15.62 4 Accounts assessed interest n.a. 15.77 15.79 15.41 n.a. n.a. 15.64 n.a. n.a. 15.52 Auto finance companies 5 New car 9.48 9.79 11.19 9.37 9.53 9.81 10.49 10.52 10.40 10.31 6 Used car 12.79 13.49 14.48 13.49 13.62 13.77 13.92 13.87 13.75 13.56 OTHER TERMS3 Maturity (months) 7 New car 54.5 54.0 54.1 50.8 50.4 50.5 51.4 51.9 52.5 52.3 8 Used car 48.8 50.2 52.2 51.7 51.6 51.7 51.3 51.0 51.1 50.3 Loan-to-value ratio 9 New car 91 92 92 91 91 91 92 91 89 90 10 Used car 98 99 99 99 100 100 100 100 101 102 Amount financed (dollars) 11 New car 14,332 15,375 16,210 16,686 16,854 16,926 16,927 17,182 17,435 17,719 12 Used car 9,875 10,709 11,590 12,233 12,249 12,242 12,132 12,108 12,326 12,393 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 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.... 481.7 543.0 627.0 621.2 720.4 845.7 866.0 578.7 591.4 874.5 693.7 670.4 By sector and instrument 2 Federal government 278.2 304.0 256.1 155.9 144.4 247.8 184.7 86.0 59.3 239.9 62.4 161.3 3 Treasury securities 292.0 303.8 248.3 155.7 142.9 249.0 183.1 85.6 54.1 242.2 60.2 164.4 4 Budget agency securities and mortgages -13.8 .2 7.8 .2 1.5 -1.2 1.6 .4 5.1 -2.3 2.2 -3.1 5 Nonfederal 203.5 239.0 370.9 465.4 576.0 597.9 681.3 492.7 532.1 634.6 631.3 509.1 By instrument Commercial paper -18.4 8.6 10.0 21.4 18.1 6.0 34.3 18.1 14.1 30.1 10.7 -16.5 7 Municipal securities 87.8 30.5 74.8 -29.3 -44.2 -54.9 -2.2 -107.2 -12.6 -14.2 36.9 -76.2 8 Coiporate bonds 78.8 67.6 75.2 23.3 73.3 53.0 98.4 59.8 82.0 60.9 71.5 73.8 9 Bank loans n.e.c -40.9 -13.7 3.6 73.2 99.6 145.5 99.1 75.3 78.5 29.8 78.8 132.9 in Other loans and advances -48.5 10.1 -9.4 54.4 59.0 82.5 57.3 35.2 61.0 32.9 26.9 56.9 it Mortgages 158.4 130.9 155.2 196.0 228.6 228.2 239.5 255.0 191.7 363.6 318.7 268.0 12 Home mortgages 173.6 187.6 185.8 203.9 196.9 209.9 190.8 227.9 159.1 319.1 248.8 224.2 13 Multifamily residential -5.5 -10.4 -6.0 1.7 10.5 6.6 10.9 11.3 13.3 13.8 18.4 14.7 14 Commercial -10.0 -47.8 -25.0 -11.3 19.5 10.0 36.1 13.7 18.2 28.4 46.1 26.0 15 Farm .4 1.4 .5 1.8 1.6 1.7 1.7 2.2 1.1 2.4 5.3 3.2 16 Consumer credit -13.7 5.0 61.5 126.3 141.6 137.6 155.0 156.4 117.5 131.5 87.8 70.2 By borrowing sector 17 Household 183.8 198.3 255.9 372.4 383.1 382.3 389.9 424.6 335.6 461.0 398.4 329.7 18 Nonfinancial business -61.9 19.5 52.7 136.4 241.5 269.8 300.4 178.4 217.4 186.2 202.7 255.9 19 Corporate -53.0 34.1 46.5 121.7 205.1 230.4 268.3 140.5 181.3 139.8 158.4 215.9 20 Nonfarm noncorporate -11.0 -16.0 4.2 11.9 34.8 38.5 29.1 34.4 37.1 46.3 37.2 41.6 21 Farm 2.1 1.3 2.0 2.8 1.6 .8 3.0 3.5 -1.0 .1 7.1 -1.5 22 State and local government 81.6 21.1 62.3 -43.4 -48.6 -54.2 -9.0 -110.3 -20.9 -12.5 30.1 -76.5 23 Foreign net borrowing in United States 14.8 23.7 70.4 -15.3 69.5 67.1 45.5 88.3 76.9 49.2 36.6 105.8 24 Open market paper 6.4 5.2 -9.0 -27.3 13.6 43.2 -8.7 23.7 -3.9 -8.4 9.6 38.6 25 Bonds 15.0 16.8 82.9 12.2 48.3 13.9 51.2 55.2 72.7 47.9 11.1 59.4 26 Bank loans n.e.c 3.1 2.3 .7 1.4 8.5 8.1 5.6 8.2 11.9 8.7 15.1 4.7 27 Other loans and advances -9.8 -.6 -4.2 -1.6 -.8 1.9 -2.6 1.3 -3.9 1.1 .7 3.1 28 Total domestic plus foreign 496.5 566.7 697.4 606.0 789.9 912.8 911.4 667.0 668.3 923.7 730.3 776.3 Financial sectors 29 Total net borrowing by financial sectors 155.6 240.0 292.2 466.7 446.7 267.7 439.9 507.0 572.0 330.3 687.5 453.7 By instrument 30 U.S. government-related 145.7 155.8 165.3 287.5 205.1 86.7 196.5 227.7 309.5 143.8 302.0 244.4 31 Government-sponsored enterprise securities 9.2 40.3 80.6 176.9 106.9 62.9 127.2 101.5 136.1 37.4 132.9 84.0 32 Mortgage pool securities 136.6 115.6 84.7 115.4 98.2 23.8 69.3 126.2 173.4 106.5 169.1 160.4 33 Loans from U.S. government .0 .0 .0 -4.8 .0 .0 .0 .0 .0 .0 .0 .0 34 9.8 84.2 126.9 179.2 241.6 181.0 243.4 279.3 262.5 186.5 385.5 209.3 35 Open market paper -32.0 -.7 -6.2 41.6 42.6 37.6 33.9 43.7 55.1 17.8 105.7 85.2 36 Corporate bonds 69.9 82.7 120.1 117.5 184.7 167.6 182.3 217.6 171.6 143.8 201.8 74.7 37 Bank loans n.e.c 8.8 2.2 -13.0 -12.3 5.5 -5.0 20.7 7.9 -1.8 24.9 23.6 9.6 38 Other loans and advances -37.3 -.6 22.4 22.6 3.4 -24.5 1.3 4.9 32.0 -5.5 48.6 33.9 39 Mortgages .5 .6 3.6 9.8 5.3 5.2 5.2 5.2 5.6 5.5 5.8 5.8 By borrowing sector 40 Commercial banking -13.2 10.0 13.4 20.1 22.5 21.7 39.0 38.9 -9.7 -32.6 40.1 11.1 41 Savings institutions -44.7 -7.0 11.3 12.8 2.6 -18.9 -7.2 5.1 31.5 11.0 42.1 31.2 42 Credit unions .0 .0 .2 .2 -.1 -.3 -.1 .1 .0 -.1 -.2 .3 43 Life insurance companies .0 .0 .2 .3 -.1 .0 .1 -.1 -.4 2.5 .3 -4.4 44 Government-sponsored enterprises 9.1 40.2 80.6 172.1 106.9 62.9 127.2 101.5 136.1 37.4 132.9 84.0 45 Federally related mortgage pools 136.6 115.6 84.7 115.4 98.2 23.8 69.3 126.2 173.4 106.5 169.1 160.4 46 Issuers of asset-backed securities (ABSs) 54.0 58.5 83.3 68.5 132.3 67.6 113.2 164.8 183.5 132.8 128.2 86.2 47 Finance companies 17.7 -1.6 .2 50.2 51.6 80.2 52.0 19.8 54.3 47.1 68.4 30.9 48 Mortgage companies -2.4 8.0 .0 -11.5 .4 -7.4 14.8 4.0 -10.0 20.0 16.0 6.6 49 Real estate investment trusts (REITs) 1.2 .3 3.4 13.7 5.4 5.2 5.2 5.2 6.0 5.9 6.5 6.7 50 Brokers and dealers 3.7 2.7 12.0 .5 -5.0 -29.5 -.1 2.1 7.7 -31.8 13.2 5.6 51 Funding corporations -6.5 13.2 2.9 24.2 32.0 62.5 26.4 39.4 -.4 31.6 70.9 35.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • March 1997 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999911 11999922 11999944 Ql Q2 Q3 Q4 Ql Q2 Q3 All sectors 52 Total net borrowing, all sectors 652.1 806.6 989.6 1,072.7 1,236.5 1,180.5 1,351.3 1,174.0 1,240.3 1,254.0 1,417.8 1,229.9 53 Open market paper -44.0 13.1 -5.1 35.7 74.3 86.8 59.5 85.5 65.3 39.5 126.0 107.3 54 U.S. government securities 424.0 459.8 421.4 448.1 349.5 334.5 381.1 313.7 368.8 383.7 364.4 405.7 55 Municipal securities 87.8 30.5 74.8 -29.3 -44.2 -54.9 -2.2 -107.2 -12.6 -14.2 36.9 -76.2 56 Corporate and foreign bonds 163.6 167.1 278.2 153.0 306.3 234.5 331.9 332.5 326.3 252.5 284.5 207.9 57 Bank loans n.e.c -29.1 -9.3 -8.6 62.3 113.5 148.7 125.4 91.4 88.6 63.3 117.5 147.1 58 Other loans and advances -95.6 8.9 8.7 70.7 61.6 59.8 56.0 41.3 89.2 28.6 76.2 94.0 59 Mortgages 158.9 131.5 158.8 205.8 233.9 233.4 244.7 260.3 197.2 369.1 324.5 273.9 60 Consumer credit -13.7 5.0 61.5 126.3 141.6 137.6 155.0 156.4 117.5 131.5 87.8 70.2 Funds raised through mutual funds and corporate equities 61 Total net issues 224.1 312.5 453.6 152.2 155.3 50.1 147.0 196.8 227.3 295.6 416.5 141.4 62 Corporate equities 76.9 103.4 129.9 23.3 -18.6 -34.0 -18.0 -5.2 -17.2 8.0 65.3 -60.7 63 Nonfinancial corporations 18.3 27.0 21.3 -44.9 -73.8 -60.0 -71.3 -92.8 -71.2 -85.2 -16.0 -98.4 64 Financial corporations 28.0 44.0 45.2 20.1 4.5 9.6 12.5 -.6 -3.5 3.4 11.7 11.9 65 Foreign shares purchased by U.S. residents 30.7 32.4 63.4 48.1 50.7 16.4 40.8 88.2 57.4 89.8 69.7 25.8 66 Mutual funds 147.2 209.1 323.7 128.9 173.9 84.1 165.0 202.0 244.5 287.6 351.2 202.1 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 TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999911 11999922 11999933 11999944 11999955 Ql Q2 Q3 Q4 Ql Q2 Q3 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 652.1 806.6 989.6 1,072.7 1,236.5 1,180.5 1,351.3 1,174.0 1,240.3 1,254.0 1,417.8 1,229.9 2 Domestic nonfederal nonfinancial sectors 113.7 105.3 77.1 248.4 -101.0 9.1 -161.5 -67.7 -183.9 -74.9 212.0 -185.6 Households 38.0 98.5 65.2 293.3 32.7 155.1 -117.3 189.3 -96.4 12.4 184.9 -93.2 4 Nonfinancial corporate business 30.7 27.8 9.1 49.6 -6.0 -41.7 37.7 -53.1 33.0 -4.4 53.9 35.7 5 Nonfarm noncorporate business -5.3 -.1 -1.1 .2 .3 .3 .3 .3 .3 .4 .4 .4 6 State and local governments 50.3 -20.9 3.9 -94.8 -127.9 -104.5 -82.2 -204.2 -120.8 -83.3 -27.3 -128.6 7 Federal government 10.5 -11.9 -18.4 -24.2 -21.5 -13.1 -24.2 -24.3 -24.4 -20.7 -15.2 -26.3 8 Rest of the world 13.3 98.4 129.3 132.3 272.7 249.9 322.2 361.0 157.6 341.1 268.2 470.9 9 Financial sectors 514.6 614.9 801.6 716.2 1,086.4 934.6 1,214.8 905.0 1,291.0 1,008.5 952.8 971.1 10 Monetary authority 31.1 27.9 36.2 31.5 12.7 18.4 16.7 -4.1 19.7 16.9 9.4 19.3 11 Commercial banking 80.8 95.3 142.2 163.4 265.9 333.0 319.4 244.8 166.2 121.7 190.1 195.2 17 U.S. chartered banks 35.7 69.5 149.6 148.1 186.5 178.7 222.4 227.0 118.1 80.5 125.5 123.6 13 Foreign banking offices in United States 48.5 16.5 -9.8 11.2 75.4 153.5 86.6 25.6 36.1 44.2 57.5 72.8 14 Bank holding companies -1.5 5.6 .0 .9 -.3 -1.5 5.3 -9.6 4.6 -5.1 5.3 -1.8 15 Banks in U.S. affiliated areas -1.9 3.7 2.4 3.3 4.2 2.4 5.2 1.8 7.4 2.1 1.7 .7 16 Savings institutions -158.9 -79.0 -23.3 6.7 -7.5 17.8 -11.7 32.2 -68.4 34.1 45.2 40.0 17 Credit unions 12.8 17.7 21.7 28.1 16.2 11.6 22.8 11.0 19.5 22.1 34.8 13.9 18 Bank personal trusts and estates 10.0 8.0 9.5 7.1 -18.8 -10.8 -20.6 -23.7 -20.2 -18.1 -12.3 -9.3 19 Life insurance companies 86.5 78.5 100.9 66.4 99.1 134.9 135.5 72.9 53.2 48.7 2.4 45.4 20 Other insurance companies 30.0 6.7 27.7 24.9 21.5 20.8 20.9 21.9 22.3 23.6 23.7 24.9 21 Private pension funds 35.4 41.1 45.9 47.0 61.3 58.9 57.2 50.5 78.5 82.6 127.5 45.9 22 State and local government retirement funds 33.8 5.9 21.1 30.7 22.7 62.9 4.9 2.6 20.2 58.7 50.0 32.5 23 Money market mutual funds 32.7 4.7 20.4 30.0 86.5 56.4 134.4 30.0 125.1 175.0 18.4 88.5 24 Mutual funds 80.1 126.2 159.5 -7.1 52.5 -13.4 23.4 58.0 141.9 67.5 63.7 34.2 25 Closed-end funds 12.8 18.2 14.4 -3.3 13.3 8.4 15.1 16.7 13.2 10.9 9.8 9.0 26 Government sponsored enterprises 15.1 68.8 88.6 120.6 88.9 22.2 93.0 50.0 190.5 39.4 127.8 85.9 27 Federally related mortgage pools 136.6 115.6 84.7 115.4 98.2 23.8 69.3 126.2 173.4 106.5 169.1 160.4 28 Asset-backed securities issuers (ABSs) 50.0 53.7 80.8 61.9 112.1 55.5 100.9 154.4 137.4 113.0 118.1 59.4 29 Finance companies -9.2 7.5 -9.0 68.2 64.2 85.1 67.2 50.8 53.7 40.9 38.9 38.7 30 Mortgage companies 11.2 .1 .0 -22.9 -3.4 -14.4 29.9 7.3 -36.4 47.9 -17.3 13.2 31 Real estate investment trusts (REITs) -.7 1.1 .6 4.7 1.8 1.8 1.8 1.8 1.9 1.9 1.7 2.4 32 Brokers and dealers 17.5 -1.3 14.8 -44.2 90.1 30.5 146.2 -1.8 185.6 -109.0 -72.0 23.6 33 Funding corporations 7.0 18.2 -34.9 -12.7 9.2 31.2 -11.4 3.5 13.7 124.1 23.8 47.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 652.1 806.6 989.6 1,072.7 1,236.5 1,180.5 1,351.3 1,174.0 1,240.3 1,254.0 1,417.8 1,229.9 Other financial sources 35 Official foreign exchange -5.9 -1.6 .8 -5.8 8.8 17.8 10.3 9.0 -1.9 -.9 1.6 -26.6 36 Special drawing rights certificates .0 -2.0 .0 .0 2.2 .0 .0 8.6 .0 .0 .0 -1.8 37 Treasury currency .0 .2 .4 .7 .6 .7 .7 .8 .0 .0 .0 2.3 38 Foreign deposits -26.5 -3.5 -18.5 54.0 33.5 34.6 110.8 -29.5 18.2 85.0 .9 45.4 39 Net interbank transactions -3.4 49.4 50.5 89.7 10.0 -22.3 -4.8 -13.5 80.6 -89.2 -52.1 -90.6 40 Checkable deposits and currency 86.3 113.5 117.3 -9.7 -12.8 31.3 100.2 -113.1 -69.3 43.3 4.5 110.7 41 Small time and savings deposits 1.5 -57.2 -70.3 -40.0 96.5 29.8 95.6 145.6 114.9 212.5 -4.6 36.9 42 Large time deposits -58.5 -73.2 -23.5 19.6 65.6 108.8 74.4 80.2 -.9 55.1 83.5 161.4 43 Money market fund shares 41.6 4.5 20.2 43.3 142.3 74.2 221.1 122.9 151.1 244.0 4.1 147.4 44 Security repurchase agreements -16.5 43.1 71.2 78.3 110.7 172.5 115.6 95.0 59.8 -19.1 117.7 -24.7 45 Corporate equities 76.9 103.4 129.9 23.3 -18.6 -34.0 -18.0 -5.2 -17.2 8.0 65.3 -60.7 46 Mutual fund shares 147.2 209.1 323.7 128.9 173.9 84.1 165.0 202.0 244.5 287.6 351.2 202.1 47 Trade payables 31.0 46.6 52.4 114.0 96.3 85.0 80.7 129.3 90.1 62.7 126.8 99.4 48 Security credit 51.4 4.6 61.4 -.1 26.7 -5.4 30.1 32.3 49.7 120.6 -37.7 -25.2 49 Life insurance reserves 25.9 28.0 36.0 34.5 44.9 50.7 57.6 33.1 38.3 20.1 42.8 43.0 50 Pension fund reserves 201.6 241.9 250.5 251.9 240.3 271.8 290.4 211.2 187.8 258.4 287.4 220.8 51 Taxes payable -7.4 9.7 5.2 3.2 1.3 12.0 1.0 2.4 -10.2 5.6 6.6 -1.3 52 Investment in bank personal trusts 16.1 -7.1 1.6 18.8 -47.7 -44.3 -45.6 -63.9 -37.1 -47.3 -20.2 -13.5 53 Noncorporate proprietors' equity .5 16.7 19.7 25.9 41.3 41.7 39.9 45.3 38.3 38.1 23.4 44.0 54 Miscellaneous 262.3 264.9 353.4 268.0 501.3 320.9 422.2 426.5 835.5 570.0 279.0 379.7 55 Total financial sources 1,476.4 1,797.5 2,371.5 2,171.3 2,753.7 2,410.5 3,098.7 2,492.9 3,012.5 3,108.6 2,697.9 2,478.7 Liabilities not identified as assets (-) 56 Treasury currency -.6 -.2 -.2 -.2 -.5 -.2 -.4 -.3 -1.0 -1.1 -1.0 1.4 57 Foreign deposits -24.0 -2.8 -7.0 44.9 27.2 41.6 101.5 -55.7 21.5 61.4 23.6 22.6 58 Net interbank liabilities 26.2 -4.9 4.2 -2.7 -3.1 -.4 -.9 12.3 -23.6 10.9 -26.9 -9.2 59 Security repurchase agreements -10.7 4.1 34.2 32.4 2.8 68.9 -52.4 26.6 -31.9 -34.5 82.5 -85.9 60 Taxes payable -2.2 11.9 11.1 8.6 8.7 -7.5 31.0 9.3 2.2 -23.2 24.9 11.8 61 Miscellaneous -13.2 -32.2 -139.7 -106.0 -7.5 -251.4 15.1 -34.8 241.0 -198.1 -259.5 -41.9 Floats not included in assets (—) 62 Federal government checkable deposits -13.1 .7 -1.5 -4.8 -6.0 4.6 -18.6 3.8 -13.8 8.6 -10.5 28.0 63 Other checkable deposits 4.5 1.6 -1.3 -2.8 -3.8 -3.6 -3.8 -3.2 -4.7 -3.8 -4.2 -4.0 64 Trade credit 36.1 11.3 -4.0 -3.1 -23.3 48.9 30.0 -46.7 -125.5 43.1 25.6 -33.0 65 Total identified to sectors as assets 1,473.3 1,808.1 2,475.6 2,205.1 2,759.2 2,509.6 2,997.1 2,581.6 2,948.4 3,245.2 2,843.3 2,588.9 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 E7. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • March 1997 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1995 1996 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 11,894.6 12,536.4 13,163.8 13,884.2 13,339.7 13,547.7 13,700.5 13,884.2 14,080.4 14,228.8 14,406.5 By sector and instrument Federal government 3,080.3 3,336.5 3,492.3 3,636.7 3,557.9 3,583.5 3,603.4 3,636.7 3,717.2 3,693.8 3,733.1 Treasury securities 3,061.6 3,309.9 3,465.6 3,608.5 3,531.5 3,556.7 3,576.5 3,608.5 3,689.6 3,665.5 3,705.7 4 Budget agency securities and mortgages 18.8 26.6 26.7 28.2 26.4 26.8 26.9 28.2 27.6 28.2 27.4 5 Nonfederal 8,814.2 9,199.9 9,671.5 10,247.5 9,781.8 9,964.2 10,097.1 10,247.5 10,363.2 10,535.0 10,673.4 By instrument 6 Commercial paper 107.1 117.8 139.2 157.4 149.8 162.9 163.3 157.4 174.2 181.7 7 Municipal securities and loans 1,302.8 1,377.5 1,348.2 1,304.0 1,335.4 1,331.7 1,308.2 1,304.0 1,302.0 1,307.8 1,291.5 8 Corporate bonds 1,154.5 1,229.7 1,253.0 1,326.3 1,266.3 1,290.9 1,305.8 1,326.3 1,341.5 11,,335599..44 1,377.9 y Bank loans n.e.c 672.2 675.9 749.0 848.6 782.7 810.7 824.3 848.6 853.9 887766..88 904.3 10 Other loans and advances 686.5 677.1 737.8 796.8 762.6 776.9 782.1 796.8 809.3 815.7 826.2 n Mortgages 4,088.7 4,258.0 4,454.0 4,682.6 4,494.1 4,560.3 4,635.2 4,682.6 4,756.6 4,842.5 4,920.8 12 Home mortgages 3,037.4 3,225.5 3,429.4 3,626.3 3,465.0 3,519.0 3,587.1 3,626.3 3,689.2 3,757.7 3,824.9 13 Multifamily residential 272.5 267.9 269.5 280.1 271.2 273.9 276.7 280.1 283.5 288.1 291.8 14 Commercial 698.1 683.4 672.1 691.6 674.6 683.6 687.0 691.6 698.7 710.2 716.7 15 Farm 80.7 81.2 83.0 84.6 83.4 83.8 84.4 84.6 85.2 86.5 87.3 16 Consumer credit 802.4 863.9 990.2 1,131.9 990.9 1,030.8 1,078.2 1,131.9 1,125.8 1,151.0 1,179.7 By borrowing sector 17 Households 4,021.5 4,279.7 4,651.8 5,034.9 4,696.9 4,801.4 4,925.9 5,034.9 5,094.8 5,203.3 5,306.6 18 Nonfinancial business 3,696.8 3,761.9 3,904.9 4,146.4 3,982.8 4,066.0 4,098.8 4,146.4 4,203.8 4,263.0 4,314.5 19 Corporate 2,437.6 2,496.5 2,624.8 2,829.9 2,695.4 2,767.3 2,790.0 2,829.9 2,878.3 2,923.0 2,963.9 20 Nonfarm noncorporate 1,122.9 1,127.1 1,139.0 1,173.8 1,148.5 1,155.9 1,164.0 1,173.8 1,185.2 1,194.7 1,204.5 21 Farm 136.3 138.3 141.2 142.7 138.9 142.8 144.8 142.7 140.3 145.3 146.1 22 State and local government 1,095.9 1,158.2 1,114.8 1,066.2 1,102.2 1,096.8 1,072.4 1,066.2 1,064.6 1,068.7 1,052.4 23 Foreign credit market debt held in United States 315.2 385.6 370.4 439.9 385.7 396.8 419.8 439.9 450.8 459.6 487.0 24 Commercial paper 77.7 68.7 41.4 55.0 50.9 48.1 55.8 55.0 51.5 53.4 64.8 25 Bonds 147.2 230.1 242.3 290.6 245.8 258.6 272.4 290.6 302.5 305.3 320.2 26 Bank loans n.e.c 23.9 24.6 26.1 34.6 28.2 29.6 31.6 34.6 36.8 40.5 41.7 27 Other loans and advances 66.4 62.1 60.6 59.7 60.8 60.5 60.0 59.7 60.0 60.4 60.4 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 12,209.8 12,921.9 13,534.2 14,324.1 13,725.4 13,944.5 14,120.3 14,324.1 14,531.2 14,688.4 14,893.6 Financial sectors 29 Total credit market debt owed by financial sectors 3,025.0 3,322.6 3,794.6 4,243.9 3,861.5 3,971.9 4,096.3 4,243.9 4,324.7 4,496.6 4,607.6 By instrument 30 Federal government-related 1,720.0 1,885.2 2,172.7 2,377.8 2,196.2 2,247.1 2,300.1 2,377.8 2,416.6 2,493.5 2,550.3 31 Government-sponsored enterprises securities 443.1 523.7 700.6 807.5 716.3 748.1 773.5 807.5 816.9 850.1 871.1 32 Mortgage pool securities 1,272.0 1,356.8 1,472.1 1,570.3 1,479.9 1,499.0 1,526.6 1,570.3 1,599.7 1,643.4 1,679.2 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 1,866.0 1,665.3 1,724.8 1,796.2 1,866.0 1,908.1 2,003.1 2,057.3 35 Open market paper 394.3 393.5 442.8 488.0 454.1 462.8 473.6 488.0 491.9 518.5 539.6 36 Corporate bonds 738.4 858.5 973.5 1,158.2 1,012.3 1,056.4 1,112.6 1,158.2 1,190.8 1,239.8 1,260.7 3/ Bank loans n.e.c 80.5 67.6 55.3 60.8 53.4 58.4 60.3 60.8 66.4 72.2 74.4 38 Other loans and advances 86.6 108.9 131.6 135.0 125.4 125.7 127.0 135.0 133.6 145.8 154.2 39 Mortgages 5.4 8.9 18.7 24.0 20.0 21.3 22.6 24.0 25.4 26.9 28.3 By borrowing sector 40 Commercial banks 80.0 84.6 94.5 102.6 95.0 99.9 102.0 102.6 100.5 103.6 106.7 41 Bank holding companies 114.6 123.4 133.6 148.0 137.7 142.9 150.3 148.0 141.3 148.4 148.0 42 Savings institutions 88.4 99.6 112.4 115.0 107.7 105.9 107.2 115.0 117.8 128.3 136.1 43 Credit unions .0 .2 .5 .4 .4 .3 .4 .4 .4 .3 .4 44 Life insurance companies .0 .2 .6 .5 .6 .6 .6 .5 1.1 1.2 .1 45 Government-sponsored enterpnses 447.9 528.5 700.6 807.5 716.3 748.1 773.5 807.5 816.9 850.1 871.1 46 Federally related mortgage pools 1,272.0 1,356.8 1,472.1 1,570.3 1,479.9 1,499.0 1,526.6 1,570.3 1,599.7 1,643.4 1,679.2 47 Issuers of asset-backed securities (ABSs) 404.3 487.6 556.1 688.4 570.0 596.8 639.8 688.4 718.2 748.9 772.6 48 Brokers and dealers 21.7 33.7 34.3 29.3 26.9 26.8 27.4 29.3 21.4 24.6 26.1 49 Finance companies 390.4 390.5 440.7 492.3 456.7 467.2 471.9 492.3 499.8 514.4 521.9 50 Mortgage companies 30.2 30.2 18.7 19.1 16.9 20.6 21.6 19.1 24.1 28.1 29.8 51 Real estate investment trusts (REITs) 13.9 17.4 31.1 36.5 32.4 33.7 35.0 36.5 38.0 39.6 41.3 52 Funding corporations 161.6 169.9 199.3 233.9 221.1 230.0 239.9 233.9 245.6 265.6 274.5 All sectors 53 Total credit market debt, domestic and foreign.... 15,234.8 16,244.5 17,328.8 18,568.0 17,586.9 17,916.3 18,216.6 18,568.0 18,855.9 19,185.0 19,501.2 54 Open market paper 579.0 580.0 623.5 700.4 654.7 673.8 692.7 700.4 717.6 753.6 777.4 55 U.S. government securities 4,795.5 5,216.9 5,665.0 6,014.6 5,754.1 5,830.6 5,903.5 6,014.6 6,133.8 6,187.2 6,283.4 56 Municipal securities 1,302.8 1,377.5 1,348.2 1,304.0 1,335.4 1,331.7 1,308.2 1,304.0 1,302.0 1,307.8 1,291.5 5/ Corporate and foreign bonds 2,040.1 2,318.3 2,468.8 2,775.1 2,524.4 2,605.9 2,690.8 2,775.1 2,834.9 2,904.6 2,958.8 58 Bank loans n.e.c 776.6 768.0 830.4 943.9 864.3 898.7 916.2 943.9 957.0 989.6 1,020.5 59 Other loans and advances 844.2 852.9 929.9 991.5 948.8 963.2 969.1 991.5 1,002.9 1,021.8 1,040.9 60 Mortgages 4,094.1 4,266.9 4,472.7 4,706.6 4,514.2 4,581.6 4,657.9 4,706.6 4,782.0 4,869.4 4,949.1 61 Consumer credit 802.4 863.9 990.2 1,131.9 990.9 1,030.8 1,078.2 1,131.9 1,125.8 1,151.0 1,179.7 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1995 1996 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999922 11999933 11999944 11999955 Ql Q2 Q3 Q4 Ql Q2 Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 15,234.8 16,244.5 17,328.8 18,568.0 17,586.9 17,916.3 18,216.6 18,568.0 18,855.9 19,185.0 19,501.2 2 Domestic nonfederal nonfinancial sectors 2,688.8 2,758.7 3,037.4 2,901.2 3,001.7 2,950.9 2,953.4 2,901.2 2,857.8 2,882.4 2,858.7 3 Households 1,635.0 1,688.5 2,012.2 2,009.6 2,033.1 1,987.9 2,055.5 2,009.6 2,013.0 2,023.4 2,020.7 4 Nonfinancial corporate business 257.8 271.5 321.1 315.1 292.6 303.5 290.6 315.1 291.3 307.9 320.1 5 Nonfarm noncorporate business 38.1 37.0 37.2 37.5 37.3 37.3 37.4 37.5 37.6 37.7 37.8 6 State and local governments 757.9 761.7 666.9 539.0 638.7 622.1 569.9 539.0 515.9 513.4 480.2 7 Federal government 236.1 231.7 207.5 186.1 204.2 198.2 192.2 186.1 180.8 177.0 170.5 8 Rest of the world 1,023.0 1,147.8 1,254.7 1,561.8 1,324.0 1,402.1 1,493.4 1,561.8 1,653.6 1,718.2 1,837.2 9 Financial sectors 11,286.9 12,106.3 12,829.1 13,918.9 13,057.1 13,365.2 13,577.6 13,918.9 14,163.8 14,407.3 14,634.8 10 Monetary authority 300.4 336.7 368.2 380.8 367.1 375.7 370.6 380.8 379.6 386.3 386.2 11 Commercial banking 2,948.6 3,090.8 3,254.3 3,520.1 3,327.8 3,410.1 3,473.2 3,520.1 3,541.6 3,590.8 3,641.6 12 U.S. chartered banks 2,571.9 2,721.5 2,869.6 3,056.1 2,906.5 2,963.7 3,023.7 3,056.1 3,068.8 3,101.3 3,135.3 13 Foreign banking offices in United States 335.8 326.0 337.1 412.6 373.6 396.0 401.1 412.6 422.2 437.1 454.2 14 Bank holding companies 17.5 17.5 18.4 18.0 18.0 19.3 16.9 18.0 16.8 18.1 17.6 15 Banks in U.S. affiliated areas 23.4 25.8 29.2 33.4 29.8 31.1 31.5 33.4 33.9 34.3 34.5 16 Savings institutions 937.4 914.1 920.8 913.3 925.3 922.4 930.4 913.3 921.8 933.1 943.1 17 Credit unions 197.1 218.7 246.8 263.0 248.1 255.0 258.5 263.0 267.0 276.9 281.0 18 Bank personal trusts and estates 231.5 240.9 248.0 229.2 245.3 240.2 234.2 229.2 224.7 221.6 219.3 19 Life insurance companies 1,309.1 1,420.6 1,487.1 1,586.2 1,523.1 1,557.1 1,575.5 1,586.2 1,600.5 1,601.0 1,612.6 20 Other insurance companies 389.4 422.7 446.4 468.7 451.9 457.3 463.0 468.7 474.5 480.2 486.4 21 Private pension funds 571.7 617.6 664.6 725.9 679.3 693.6 706.2 725.9 746.5 778.4 789.8 22 State and local government retirement funds 402.3 423.4 454.1 476.8 469.4 470.9 470.6 476.8 491.1 504.0 511.4 23 Money market mutual funds 408.6 429.0 459.0 545.5 480.6 508.0 505.7 545.5 595.6 594.7 606.6 24 Mutual funds 566.4 725.9 718.8 771.3 719.3 724.8 739.2 771.3 792.4 807.9 816.2 25 Closed-end funds 67.7 82.0 78.7 92.0 80.8 84.6 88.7 92.0 94.8 97.2 99.5 26 Government-sponsored enterprises 457.8 546.4 667.0 756.0 671.9 695.9 708.4 756.0 765.2 797.8 819.3 27 Federally related mortgage pools 1,272.0 1,356.8 1,472.1 1,570.3 1,479.9 1,499.0 1,526.6 1,570.3 1,599.7 1,643.4 1,679.2 28 Asset-backed securities issuers (ABSs) 378.0 458.8 520.7 632.7 531.5 555.2 595.7 632.7 657.6 685.7 702.8 29 Finance companies 496.4 482.8 551.0 615.2 568.5 586.9 594.7 615.2 621.7 632.6 637.1 30 Mortgage companies 60.5 60.4 37.5 34.1 33.9 41.4 43.2 34.1 46.1 41.7 45.0 31 Real estate investment trusts (REITs) 8.1 8.6 13.3 15.1 13.8 14.2 14.7 15.1 15.6 16.1 16.6 32 Brokers and dealers 122.7 137.5 93.3 183.4 101.0 137.5 137.0 183.4 156.2 138.2 144.1 33 Funding corporations 161.3 132.5 127.5 139.3 138.6 135.5 141.4 139.3 171.8 179.6 196.9 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 15,234.8 16,244.5 17,328.8 18,568.0 17,586.9 17,916.3 18,216.6 18,568.0 18,855.9 19,185.0 19,501.2 Other liabilities 35 Official foreign exchange 51.8 53.4 53.2 63.7 64.1 67.1 65.1 63.7 62.1 61.4 54.3 36 Special drawing rights certificates 8.0 8.0 8.0 10.2 8.0 8.0 10.2 10.2 10.2 10.2 9.7 37 Treasury currency 16.5 17.0 17.6 18.2 17.8 18.0 18.2 18.2 18.2 18.2 18.8 38 Foreign deposits 267.7 271.8 324.6 361.4 333.3 361.0 353.6 361.4 382.7 382.9 394.3 39 Net interbank liabilities 138.5 189.3 280.0 290.7 272.8 265.9 267.2 290.7 266.3 249.9 230.0 40 Checkable deposits and currency 1,134.4 1,251.7 1,242.0 1,229.3 1,193.7 1,246.2 1,200.3 1,229.3 1,183.3 1,212.3 1,221.7 41 Small time and savings deposits 2,293.5 2,223.2 2,183.3 2,279.7 2,200.2 2,222.6 2,255.8 2,279.7 2,342.3 2,340.1 2,345.5 42 Large time deposits 415.2 391.7 411.2 476.9 441.2 456.3 477.5 476.9 493.6 511.1 552.3 43 Money market fund shares 539.5 559.6 602.9 745.3 634.0 678.5 702.7 745.3 816.9 809.5 838.1 44 Security repurchase agreements 399.9 471.1 549.4 660.1 603.4 629.3 655.5 660.1 666.2 692.1 688.8 45 Mutual fund shares 992.5 1,375.4 1,477.3 1,852.8 1,553.3 1,661.0 1,782.0 1,852.8 1,994.3 2,130.6 2,221.7 46 Security credit 217.7 279.0 279.0 305.6 269.5 277.9 286.2 305.6 326.9 318.6 312.6 47 Life insurance reserves 434.8 470.8 505.3 550.2 518.0 532.4 540.6 550.2 555.2 565.9 576.7 48 Pension fund reserves 4,225.4 4,638.5 4,846.9 5,567.1 5,030.8 5,224.2 5,439.5 5,567.1 5,749.7 5,897.7 6,061.0 49 Trade payables 995.1 1,048.2 1,162.2 1,258.5 1,155.1 1,177.5 1,211.1 1,258.5 1,246.0 1,278.6 1,304.8 50 Taxes payable 79.7 84.9 88.0 89.3 94.3 89.2 91.9 89.3 94.3 90.3 92.1 51 Investment in bank personal trusts 660.6 691.3 699.4 767.4 719.7 739.7 758.6 767.4 781.6 790.9 799.5 52 Miscellaneous 4,784.5 5,173.0 5,436.9 5,839.8 5,516.4 5,574.1 5,684.4 5,839.8 5,974.4 5,988.9 6,102.2 53 Total liabilities 32,890.0 35,442.4 37,496.2 40,934.0 38,212.4 39,145.2 40,017.0 40,934.0 41,820.1 42,534.3 43,325.3 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 19.6 20.1 21.1 22.1 22.7 22.9 22.1 22.1 22.1 22.0 21.2 55 Corporate equities 5,456.8 6,280.0 6,263.3 8,389.9 6,797.5 7,348.4 7,972.4 8,389.9 8,875.8 9,170.9 9,387.4 56 Household equity in noncorporate business 2,460.1 2,495.5 2,587.5 2,699.6 2,607.2 2,641.1 2,655.0 2,699.6 2,736.1 2,758.3 2,772.0 Liabilities not identified as assets (—) 57 Treasury currency -4.9 -5.1 -5.4 -5.8 -5.4 -5.5 -5.6 -5.8 -6.1 -6.3 -6.0 58 Foreign deposits 217.6 232.6 278.7 309.0 289.1 314.5 300.6 309.0 324.4 330.3 335.9 59 Net interbank transactions -9.3 -4.7 -6.5 -9.0 -2.7 -2.9 .1 -9.0 -2.6 -8.0 -11.6 60 Security repurchase agreements 41.9 76.1 108.5 111.2 130.7 110.2 131.2 111.2 106.7 118.2 113.0 61 Taxes payable 25.2 26.8 35.4 44.1 20.5 35.9 39.1 44.1 23.9 38.0 42.4 62 Miscellaneous -698.8 -816.7 -876.0 -911.7 -877.2 -830.6 -793.8 -911.7 -981.8 -1,057.0 -1,039.9 Floats not included in assets (—) 63 Federal government checkable deposits 6.8 5.6 3.4 3.1 4.2 2.0 .6 3.1 .0 -3.4 -1.7 64 Other checkable deposits 42.0 40.7 38.0 34.2 33.3 35.7 27.3 34.2 29.6 31.8 23.1 65 Trade credit -251.1 -248.0 -252.0 -275.4 -295.1 -306.2 -330.0 -275.4 -326.5 -336.2 -354.5 66 Total identified to sectors as assets 41,457.1 44,930.6 47,044.0 52,745.9 48,342.6 49,804.6 51,297.2 52,745.9 54,286.6 55,378.2 56,405.2 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. 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 • March 1997 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 1996 MMeeaassuurree 11999944 11999955 11999966 Apr. May June July Aug. Sept. Oct.' Nov.' Dec. 1 Industrial production1 108.6 112.1 115.1 114.3r 114.8r 115.5r 115.5r 115.8r 116.0r 116.0 116.9 117.7 Market groupings 2 Products, total 106.8 109.3 111.9 111.0' 111.4r 112.3r 112.3r 112.2' 112.7' 112.7 113.7 114.3 3 Final, total 107.1 109.9 112.7 ii2.r 112.2r ii3.r 113.4r 113.0' 113.3' 113.5 114.5 115.1 4 Consumer goods 107.4 108.9 110.3 109.8r 110.0r 110.8r 110.7r 110.1' 110.5' 110.4 111.9 112.3 5 Equipment 106.6 111.6 116.8 115.9r 116.0r ii7.r 118.1r 117.9' 118.1' 118.7 119.0 119.9 6 Intermediate 106.1 107.5 109.4 107.7r 108.9r 109.7r 108.9' 110.0' 110.6' 110.5 111.4 111.7 7 Materials 111.3 116.6 120.3 119.5r 120.1r 120.5r 120.5' 121.5' 121.2' 121.2 121.9 123.0 Industry groupings 8 Manufacturing 109.4 113.2 116.3 115.2r 115.7r 116.4r 117.0' 117.2' 117.4' 117.4 118.1 119.3 9 Capacity utilization, manufacturing (percent)2.. 83.1 83.1 82.1 82.0r 82.0r 82.3r 82.4' 82.3' 82.1' 81.8 82.1 82.6 10 Construction contracts3 114.3 118.3 124.8 130.0 129.0 127.0r 131.0' 133.0' 128.0' 120.0 122.0 115.0 11 Nonagricultural employment, total4 112.0 115.0 117.3 116.6 117.0 117.2 117.5 117.8 117.8 118.0 118.1 118.4 12 Goods-producing, total 96.9 98.1 98.3 98.1 98.3 98.4 98.3 98.5 98.3 98.4 98.5 98.7 13 Manufacturing, total 96.4 97.2 96.2 96.2 96.3 96.3 96.2 96.3 96.0 96.1 96.1 96.2 14 Manufacturing, production workers 97.5 98.7 97.5 97.5 97.5 97.5 97.4 97.5 97.2 97.3 97.3 97.4 15 Service-producing 116.8 120.3 123.3 122.6 123.0 123.3 123.6 123.9 124.0 124.3 124.4 124.7 16 Personal income, total 148.4 157.7 n.a. 164.3 165.2 166.6 166.7 167.7 168.6 168.7 169.6 n.a. 17 Wages and salary disbursements 142.6 150.9 n.a. 157.5 158.3 160.3 159.8 161.1 162.2 162.0 163.0 n.a. 18 Manufacturing 124.9 130.4 n.a. 134.4 135.1 135.8 135.8 136.9 136.7 136.7 137.4 n.a. 19 Disposable personal income5 149.3 158.2 n.a. 162.8 165.1 166.4 166.5 167.4 168.2 168.4 169.2 n.a. 20 Retail sales5 144.8 152.2 159.8 159.1 160.4 159.4 159.6 159.6 160.7 161.8 161.4 162.4 Prices6 21 Consumer (1982-84=100) 148.2 152.4 156.9 156.3 156.6 156.7 157.0 157.3 157.8 158.3 158.6 158.6 22 Producer finished goods (1982=100) 125.5 127.9 131.3 130.6 131.1 131.7 131.5 131.9 131.6 132.5 132.5 132.7 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. For 4. Based on data from U.S. Department of Labor, Employment and Earnings. Series covers the ordering address, see the inside front cover. The latest historical revision of the industrial employees only, excluding personnel in the armed forces. production index and the capacity utilization rates was released in January 1997. See 5. Based on data from U.S. Department of Commerce, Survey of Current Business. "Industrial Production and Capacity Utilization: Historical Revision and Recent Develop- 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price ments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92. The article contains a indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics, description of the new aggregation system for industrial production and capacity utilization. Monthly Labor Review. For a detailed description of the industrial production index, see "Industrial Production: 1989 NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. mentioned in notes 3 and 6, can also be found in the Survey of Current Business. 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. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted 1996 CCaatteeggoorryy 11999944 11999955 11999966 May June July Aug. Sept. Oct.' Nov.' Dec. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 131,056 132,304 133,943 133,759' 133,709' 134,165' 133,898' 134,291' 134,636 134,831 135,022 Employment 2 Nonagricultural industries3 119,651 121,460 123,264 122,954' 123,182' 123,419' 123,570' 123,768' 124,167 124,290 124,429 3 Agriculture 3,409 3,440 3,443 3,474' 3,408' 3,470' 3,418' 3,480' 3,450 3,354 3,426 Unemployment 4 Number 7,996 7,404 7,236 7,331' 7,119' 7,276' 6,910' 7,043' 7,019 7,187 7,167 5 Rate (percent of civilian labor force) 6.1 5.6 5.4 5.5' 5.3 5.4 5.2' 5.2 5.2 5.3 5.3 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 114,172 117,203 119,549 119,332 119,537 119,772 120,052 120,050 120,311 120,438 120,700 7 Manufacturing 18,321 18,468 18,282 18,303 18,298 18,267 18,291 18,241 18,254 18,254 18,273 8 Mining 601 580 570 576 575 570 570 567 566 567 565 9 Contract construction 4,986 5,158 5,405 5,384 5,401 5,427 5,437 5,449 5,464 5,487 5,510 10 Transportation and public utilities 5,993 6,165 6,318 6,309 6,329 6,333 6,342 6,337 6,338 6,355 6,360 11 Trade 26,670 27,585 28,178 28,052 28,143 28,256 28,275 28,321 28,446 28,483 28,540 12 Finance 6,896 6,830 6,977 6,964 6,967 6,987 6,999 7,009 7,026 7,036 7,053 13 Service 31,579 33,107 34,360 34,285 34,378 34,448 34,532 34,607 34,709 34,771 34,883 14 Government 19,128 19,310 19,459 19,459 19,446 19,484 19,606 19,519 19,508 19,485 19,516 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 1996 1996 1996 SSeerriieess Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 113.1 114.8 115.8 116.8 136.7 137.9 139.2 140.5 82.8 83.3 83.2 83.2 2 Manufacturing 114.0 115.8 117.2 118.3 139.6 141.0 142.5 143.9 81.7 82.1 82.3 82.2 3 Primary processing3 110.1 111.7 113.2 113.6 129.1 129.9 130.7 131.5 85.3 86.0 86.6 86.4 4 Advanced processing4 115.9 117.8 119.1 120.6 144.7 146.5 148.2 150.0 80.1 80.4 80.4 80.4 5 Durable goods 122.3 125.4 127.2 127.9 150.0 152.2 154.5 156.9 81.6 82.4 82.3 81.6 6 Lumber and products 107.1 111.0 110.5 109.9 127.3 128.2 129.1 130.0 84.1 86.6 85.6 84.5 7 Primary metals 114.0 116.5 118.6 118.9 127.6 128.7 129.8 131.0 89.3 90.5 91.4 90.8 8 Iron and steel 113.3 115.8 117.9 119.2 128.8 130.3 131.9 133.5 88.0 88.8 89.4 89.3 9 Nonferrous 114.6 117.2 119.4 118.5 125.9 126.5 127.1 127.8 91.0 92.7 93.9 92.7 10 Industrial machinery and equipment 150.7 154.6 158.9 161.6 166.9 171.6 176.3 181.3 90.3 90.1 90.1 89.1 11 Electrical machinery 159.0 162.3 164.5 167.3 186.0 193.2 200.6 208.5 85.5 84.0 82.0 80.3 12 Motor vehicles and parts 120.6 130.4 131.3 123.3 173.6 174.9 176.1 177.3 69.5 74.6 74.5 69.5 13 Aerospace and miscellaneous transportation equipment 81.5 83.8 86.7 90.7 121.0 120.6 120.2 119.8 67.4 69.5 72.2 75.7 14 Nondurable goods 105.1 105.5 106.5 107.9 128.5 129.0 129.6 130.1 81.8 81.8 82.2 82.9 15 Textile mill products 104.5 106.5 107.9 109.0 128.7 129.4 130.1 130.8 81.2 82.3 82.9 83.3 16 Paper and products 105.2 107.9 109.0 109.5 121.9 122.4 122.9 123.3 86.3 88.2 88.7 88.8 17 Chemicals and products 106.8 107.3 109.2 110.9 136.7 137.9 139.2 140.3 78.1 77.8 78.4 79.0 18 Plastics materials 117.3 122.1 125.3 127.3 129.5 131.8 134.0 92.1 94.3 95.1 94.1 19 Petroleum products 105.6 106.0 106.7 107.3 113.4 113.5 113.7 113.8 93.1 93.4 93.9 94.3 20 Mining 100.8 103.5 103.7 104.3 113.9 113.7 113.7 113.7 88.5 91.0 91.2 91.8 21 Utilities 113.4 114.0 110.5 111.9 123.9 124.5 125.2 125.9 91.6 91.6 88.2 88.9 22 Electric 113.4 114.0 110.8 112.6 122.1 122.8 123.6 124.4 92.9 92.8 89.6 90.5 1973 1975 Previous cycle5 Latest cycle6 1995 1996 High Low High Low High Low Dec. July Aug. Sept.r Oct.r Nov. Dec.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.3 78.1 83.0 83.2 83.2 83.1 82.8 83.2 83.5 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 82.0 82.4 82.3 82.1 81.8 82.1 82.6 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.8 86.0 86.7 86.5 86.6 86.4 86.1 86.7 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 80.3 80.6 80.4 80.2 79.9 80.4 80.8 5 Durable goods 89.2 68.9 87.7 63.9 84.5 73.2 81.8 82.6 82.5 81.9 81.3 81.4 82.0 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 85.3 84.9 86.3 85.5 84.2 84.9 84.3 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 90.4 91.2 91.2 91.8 92.4 88.8 91.2 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 89.6 89.8 89.6 88.7 90.9 87.4 89.6 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 91.4 92.9 93.2 95.7 94.3 90.6 93.2 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.4 90.8 90.2 90.5 89.6 89.1 88.9 89.5 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.1 85.9 82.7 82.0 81.3 80.4 79.9 80.4 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 74.6 76.3 75.4 71.9 67.4 70.7 70.5 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 62.8 71.3 72.0 73.3 74.7 75.7 76.7 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 82.3 82.2 82.0 82.4 82.5 82.9 83.4 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 82.9 83.7 82.7 82.2 82.7 83.3 84.0 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 88.8 89.8 88.0 88.4 87.2 89.3 89.9 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 78.6 78.6 78.1 78.6 78.6 79.2 79.1 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 90.9 94.9 94.9 95.4 94.0 94.2 94.0 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 92.7 92.7 94.8 94.0 95.1 93.6 94.1 20 Mining 94.3 88.2 96.0 80.3 86.8 86.1 88.0 90.7 91.9 91.0 91.1 91.6 92.6 71 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 91.0 87.6 88.5 88.6 88.7 90.6 87.4 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 91.8 89.2 90.2 89.6 90.2 92.1 89.3 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 January 1997. See primary metals; and fabricated metals. "Industrial Production and Capacity Utilization: Historical Revision and Recent Develop- 4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing ments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92. The article contains a and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather description of the new aggregation system for industrial production and capacity utilization. and products; machinery; transportation equipment; instruments; and miscellaneous manufac- For a detailed description of the industrial production index, see "Industrial Production: 1989 tures. Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 5. Monthly highs, 1978-80; monthly lows, 1982. 187-204. 6. Monthly highs, 1988-89; monthly lows, 1990-91. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted index of industrial production to the corresponding index of capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • March 1997 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1995 1996 pro- 1996 por- avg. tion Dec.' Jan.r Feb.r Mar.r Apr.r Mayr June' July' Aug.' Sept.' Oct.' Nov. Dec.p Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 115.1 112.8 112.4 113.8 113.2 114.3 114.8 115.5 115.5 115.8 116.0 116.0 116.9 117.7 2 Products 60.5 111.9 109.7 109.1 110.8 110.4 111.0 111.4 112.3 112.3 112.2 112.7 112.7 113.7 114.3 3 Final products 46.3 112.7 110.2 109.8 111.7 111.1 112.1 112.2 113.1 113.4 113.0 113.3 113.5 114.5 115.1 4 Consumer goods, total 29.1 110.3 109.3 108.3 109.9 109.4 109.8 110.0 110.8 110.7 110.1 110.5 110.4 111.9 112.3 5 Durable consumer goods 6.1 126.3 124.8 121.1 124.7 120.8 125.7 126.9 129.9 129.7 128.0 127.1 124.5 126.9 129.9 6 Automotive products 2.6 125.8 125.6 121.1 125.6 115.1 126.0 126.9 130.0 132.1 128.7 127.7 122.0 127.2 127.7 7 Autos and trucks 1.7 132.6 132.0 126.2 133.0 111.2 135.0 135.0 137.7 145.7 138.7 134.6 125.5 133.4 135.1 8 Autos, consumer .9 120.2 121.3 115.3 121.6 93.5 126.1 129.0 133.3 137.8 132.5 129.9 112.2 123.2 115.8 9 Trucks, consumer .7 147.2 147.6 142.3 150.3 135.4 150.3 147.3 148.7 161.3 152.3 146.6 147.4 152.4 164.9 10 Auto parts and allied goods .9 114.6 114.8 112.1 113.7 117.7 111.9 114.0 117.4 112.4 113.5 116.2 114.8 116.5 115.7 11 Other 3.5 126.5 124.2 121.1 123.9 124.7 125.3 126.7 129.7 128.0 127.5 126.6 126.1 126.7 131.3 12 Appliances, televisions, and air conditioners 1.0 173.6 162.0 157.4 164.4 165.8 170.2 172.0 180.1 181.1 175.9 174.2 176.0 176.8 189.0 13 Carpeting and furniture .8 110.0 111.1 106.8 108.0 110.8 109.1 112.4 114.6 107.0 111.1 110.5 108.6 110.5 111.0 14 Miscellaneous home goods 1.6 107.9 109.0 107.2 108.6 108.0 108.0 108.1 108.7 108.5 108.0 107.6 106.5 106.3 109.1 IS Nondurable consumer goods 23.0 106.4 105.4 105.1 106.2 106.6 105.9 105.8 106.0 106.0 105.6 106.3 106.8 108.1 107.9 16 Foods and tobacco 10.3 106.1 104.7 104.6 105.8 106.8 105.7 105.3 105.8 105.9 105.4 106.1 106.6 107.1 108.6 1/ Clothing 2.4 95.6 96.3 94.5 96.5 95.8 96.1 95.9 95.6 95.4 95.4 95.1 95.7 95.3 95.6 18 Chemical products 4.5 112.5 111.4 111.1 111.3 110.5 110.0 110.5 110.6 112.6 111.3 113.5 114.1 117.4 117.0 19 Paper products 2.9 101.0 99.6 98.5 99.8 99.7 100.0 100.7 100.2 101.4 101.8 101.9 102.9 103.0 102.3 20 Energy 2.9 111.2 111.1 111.8 112.8 114.1 112.8 112.8 113.2 109.1 109.4 109.4 109.0 111.8 107.5 21 Fuels .8 106.5 104.3 104.4 106.7 106.9 106.4 106.8 106.7 106.7 107.7 105.4 108.1 106.3 106.6 22 Residential utilities 2.1 113.0 114.0 115.0 115.4 117.1 115.5 115.4 116.0 109.9 110.0 110.9 109.2 114.2 107.7 23 Equipment 17.2 116.8 111.7 112.4 114.8 113.9 115.9 116.0 117.1 118.1 117.9 118.1 118.7 119.0 119.9 24 Business equipment 13.2 126.6 120.7 122.0 124.6 122.6 125.1 125.0 126.6 128.1 127.7 128.3 129.1 129.7 130.8 25 Information processing and related 5.4 143.3 133.0 135.9 139.4 139.8 140.5 140.8 143.9 144.1 144.6 146.3 148.3 147.7 148.8 26 Computer and office equipment 1.4 297.3 239.0 246.0 258.0 265.4 272.2 279.7 289.4 301.7 306.2 314.3 319.0 324.7 330.2 27 Industrial 4.0 126.9 128.0 126.0 127.7 127.1 127.5 126.5 126.3 127.2 126.7 126.3 127.2 126.3 127.8 28 Transit 2.5 100.0 88.2 93.5 96.7 87.4 97.5 97.5 100.6 104.1 103.0 103.8 101.9 107.0 107.0 29 Autos and trucks 1.2 115.3 114.7 111.9 115.6 95.2 118.5 118.0 120.8 126.5 120.9 117.7 109.4 116.1 113.3 30 Other 1.3 116.1 116.8 114.2 114.9 114.7 114.7 115.3 114.3 118.0 116.1 115.5 117.5 118.3 120.0 31 Defense and space equipment 3.3 77.0 76.0 74.8 76.4 77.6 77.4 77.9 77.0 77.7 77.9 77.7 77.2 76.3 76.4 32 Oil and gas well drilling .6 120.5 107.2 109.0 113.2 119.8 123.7 127.0 127.8 122.1 122.6 117.5 120.2 120.7 123.6 33 Manufactured homes .2 157.2 155.6 156.4 162.5 164.8 165.7 167.9 163.0 167.4 165.6 165.3 159.8 34 Intermediate products, total 14.2 109.4 108.3 106.9 108.1 108.4 107.7 108.9 109.7 108.9 110.0 110.6 110.5 111.4 111.7 35 Construction supplies 5.3 116.8 113.5 110.8 113.3 115.5 114.2 116.1 118.3 117.5 119.2 119.8 117.9 119.2 119.7 36 Business supplies 8.9 105.0 105.2 104.6 105.0 104.3 103.9 104.6 104.6 103.9 104.6 105.3 106.1 106.8 106.9 37 Materials 39.5 120.3 117.6 117.5 118.5 117.7 119.5 120.1 120.5 120.5 121.5 121.2 121.2 121.9 123.0 38 Durable goods materials 20.8 133.9 129.6 130.2 131.5 129.5 132.6 133.5 134.0 134.5 136.2 135.5 135.3 135.6 137.8 39 Durable consumer parts 4.0 128.3 128.3 131.0 128.3 117.0 130.1 130.6 130.4 131.1 133.9 128.3 124.5 126.3 127.8 40 Equipment parts 7.6 159.2 149.2 149.6 154.0 154.6 155.7 157.2 158.9 159.6 161.7 162.6 163.4 165.1 168.2 41 Other 9.2 118.2 116.0 115.9 116.8 116.8 117.2 117.8 117.9 118.2 119.2 119.2 119.8 118.8 120.6 42 Basic metal materials 3.1 112.9 111.8 109.0 111.3 112.0 112.1 112.2 112.6 112.9 113.6 114.7 116.0 112.8 115.3 43 Nondurable goods materials 8.9 106.2 105.4 104.1 104.5 104.4 105.5 105.9 106.2 107.4 106.5 106.9 106.6 107.5 108.3 44 Textile materials 1.1 106.8 105.1 102.2 103.6 104.6 105.6 106.1 106.3 109.9 107.4 107.1 108.7 109.5 110.9 45 Paper materials 1.8 107.2 106.4 104.7 104.9 104.4 106.9 106.4 105.2 109.1 108.2 107.0 107.4 110.5 111.5 46 Chemical materials 3.9 105.3 104.0 103.7 103.5 103.5 104.1 104.7 105.3 106.1 106.2 106.8 107.1 106.3 106.7 47 Other 2.1 106.0 107.2 104.7 105.9 105.4 106.5 107.1 108.0 107.1 104.7 106.2 103.2 106.1 107.1 48 Energy materials 9.7 104.1 103.1 102.5 103.5 104.5 104.2 104.6 104.8 102.4 104.0 103.9 104.4 105.6 104.8 49 Primary energy 6.3 102.9 101.8 100.9 102.6 103.9 104.0 103.5 103.5 101.7 103.2 102.2 102.4 103.6 103.4 50 Converted fuel materials 3.3 106.3 105.7 105.4 105.3 105.7 104.6 106.7 107.2 103.9 105.4 107.0 108.0 109.2 107.5 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 114.9 112.5 112.1 113.4 113.4 113.9 114.4 115.0 114.9 115.4 115.7 115.9 116.6 117.4 52 Total excluding motor vehicles and parts 95.1 114.6 112.0 111.6 113.1 113.5 113.5 114.0 114.7 114.6 115.0 115.4 115.8 116.4 117.2 53 Total excluding computer and office equipment 98.2 112.9 111.1 110.6 111.9 111.2 112.2 112.6 113.2 113.1 113.4 113.5 113.5 114.3 115.0 54 Consumer goods excluding autos and trucks . 27.4 109.1 108.0 107.3 108.6 109.2 108.4 108.7 109.3 108.9 108.6 109.2 109.4 110.6 111.0 55 Consumer goods excluding energy 26.2 110.2 109.0 107.8 109.5 108.8 109.4 109.6 110.4 110.9 110.2 110.6 110.6 111.9 112.9 56 Business equipment excluding autos and trucks 12.0 127.8 121.3 123.0 125.5 125.3 125.8 125.7 127.2 128.2 128.3 129.3 131.1 131.1 132.6 57 Business equipment excluding computer and office equipment 12.1 115.8 112.6 113.6 115.6 113.1 115.3 114.7 115.8 116.8 116.1 116.3 116.9 117.3 118.1 58 Materials excluding energy 29.8 125.2 122.1 122.1 123.1 121.7 124.2 124.9 125.4 126.1 127.0 126.6 126.3 126.9 128.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1992 Group c S o I d C e p p r o o r - - 1 av 99 g 6 . tion Dec.r Jan.r Feb.r Mar.r Apr/ Mayr Juner Julyr Aug/ Sept/ Oct/ Nov. Dec.p Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 115.1 112.8 112.4 113.8 113.2 114.3 114.8 115.5 115.5 115.8 116.0 116.0 116.9 117.7 60 Manufacturing 85.4 116.3 113.8 113.4 114.8 113.9 115.2 115.7 116.4 117.0 117.2 117.4 117.4 118.1 119.3 61 Primary processing 26.5 112.2 110.6 109.5 110.1 110.8 111.0 111.7 112.6 113.0 113.1 113.5 113.3 113.1 114.3 62 Advanced processing 58.9 118.3 115.3 115.2 117.1 115.4 117.3 117.6 118.3 118.9 119.2 119.3 119.3 120.6 121.8 63 Durable goods 45.0 125.7 121.5 121.5 123.6 121.8 124.6 125.2 126.3 126.9 127.5 127.2 126.9 127.7 129.3 64 Lumber and products " ' 24 2.0 109.6 108.1 105.3 106.3 109.7 110.3 110.4 112.4 109.3 111.4 110.7 109.3 110.4 109.9 65 Furniture and fixtures 25 1.4 109.0 107.5 107.4 107.9 105.8 108.1 110.3 109.5 108.1 108.8 108.8 110.4 110.7 112.4 66 Stone, clay, and glass products 32 2.1 111.1 109.3 110.1 109.1 108.7 108.5 109.8 111.3 114.1 111.8 113.1 111.9 111.6 112.8 67 Primary metals 33 3.1 117.0 114.8 111.7 114.6 115.6 116.1 116.3 117.0 118.0 118.3 119.5 120.7 116.3 119.8 68 Iron and steel 331,2 1.7 116.6 114.7 112.3 113.9 113.8 114.6 115.7 117.1 118.0 118.2 117.4 120.9 116.6 120.2 69 Raw steel 331PT .1 112.2 113.7 112.3 111.2 112.7 112.1 112.9 114.9 113.3 113.6 112.6 111.5 108.7 111.9 70 Nonferrous 333-6,9 1.4 117.4 114.8 111.0 115.3 117.6 117.9 116.9 116.8 117.9 118.5 121.8 120.3 115.8 119.3 71 Fabricated metal products. .. 34 5.0 118.7 116.5 116.7 117.9 117.6 117.8 118.4 118.9 119.1 119.4 119.3 119.3 120.0 120.5 72 Industrial machinery and equipment 35 8.0 156.4 149.0 148.3 151.4 152.5 153.3 154.3 156.1 157.7 159.6 159.4 159.9 161.1 163.7 73 Computer and office equipment 357 1.8 297.3 244.9 251.8 263.6 270.8 277.3 284.7 294.3 306.5 310.8 319.0 323.8 329.6 335.2 74 Electrical machinery 36 7.3 163.3 155.8 155.8 161.0 160.3 161.1 161.8 164.0 163.8 164.6 165.2 165.5 166.6 169.9 75 Transportation equipment.. . 37 9.5 105.8 102.0 103.3 104.4 94.9 106.4 106.8 107.1 109.5 109.3 107.3 104.5 108.0 108.6 76 Motor vehicles and parts . 371 4.9 126.4 128.7 127.6 127.4 106.8 130.3 130.5 130.4 134.1 132.8 127.0 119.3 125.3 125.4 77 Autos and light trucks . 371PT 2.6 124.6 124.0 118.4 124.8 103.0 127.1 127.6 130.4 137.3 131.0 127.4 117.2 125.4 125.4 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 85.7 76.2 79.7 81.9 82.8 83.2 83.8 84.3 85.7 86.5 87.9 89.5 90.7 91.8 79 Instruments 38 5.4 102.9 99.9 101.0 102.9 102.9 102.3 102.4 103.3 102.3 103.0 103.0 104.2 103.2 103.9 80 Miscellaneous 39 1.3 112.7 111.6 110.3 112.4 112.5 112.0 112.2 113.1 113.0 112.9 113.0 113.0 113.4 115.0 81 Nondurable goods 40.4 106.3 105.4 104.6 105.3 105.4 105.2 105.5 105.9 106.4 106.2 106.9 107.2 107.9 108.7 82 Foods "20 9.4 106.3 105.1 104.8 105.7 106.2 105.9 105.6 106.1 106.5 105.5 106.2 107.0 107.3 108.6 83 Tobacco products 21 1.6 105.6 104.1 104.1 107.4 111.3 106.3 103.7 105.1 102.5 104.1 104.9 103.0 105.9 108.6 84 Textile mill products 22 1.8 107.0 106.2 102.5 104.0 107.0 105.3 106.1 108.0 108.7 107.7 107.2 108.0 109.0 110.1 85 Apparel products 23 2.2 98.3 99.3 96.8 99.2 98.1 99.0 99.0 99.0 98.3 98.5 98.2 97.8 97.3 97.9 86 Paper and products 26 3.6 107.9 108.0 105.3 104.6 105.8 107.5 107.8 108.5 110.2 108.1 108.8 107.3 110.1 111.0 87 Printing and publishing 27 6.7 98.6 99.1 98.2 99.2 97.6 96.9 97.9 97.1 97.6 97.9 99.1 100.1 100.8 100.9 88 Chemicals and products .... 28 9.9 108.5 106.8 106.8 107.0 106.6 106.9 107.2 107.9 109.0 108.7 109.7 110.1 111.2 111.3 89 Petroleum products 29 1.4 106.4 105.1 105.2 106.0 105.7 105.5 106.2 106.3 105.3 107.8 106.9 108.2 106.5 107.2 90 Rubber and plastic products . 30 3.5 120.6 118.6 118.2 118.6 119.3 118.0 119.8 120.9 120.7 122.0 122.8 121.9 121.7 123.6 91 Leather and products 31 .3 80.3 81.4 80.1 81.7 81.2 81.1 80.7 81.0 80.0 79.5 79.4 79.5 79.2 80.3 92 Mining 6.9 103.1 100.3 99.0 100.8 102.8 102.9 103.2 104.4 103.1 104.5 103.4 103.5 104.1 105.3 93 Metal 10 .5 101.6 101.7 97.0 97.1 101.7 99.4 100.9 101.7 103.1 104.0 105.3 103.7 102.5 103.2 94 Coal 12 1.0 105.9 103.4 96.6 101.2 105.9 105.3 108.0 108.9 102.7 109.6 106.2 107.5 108.8 109.6 95 Oil and gas extraction 13 4.8 100.5 97.5 98.0 98.9 100.2 100.9 100.5 101.5 100.9 101.1 100.5 100.5 101.2 102.4 96 Stone and earth minerals 14 .6 118.4 115.0 112.1 117.4 117.9 116.3 117.4 120.6 120.6 121.7 118.5 119.3 118.5 120.8 97 Utilities 7.7 112.5 112.3 112.5 113.3 114.4 113.5 114.6 114.0 109.4 110.8 111.1 111.4 114.0 110.2 98 Electric 491.493PT 6.2 112.7 111.6 112.6 113.6 114.0 113.1 114.8 114.2 110.1 111.5 110.9 112.0 114.6 111.3 99 Gas 492.493PT 1.6 111.5 115.0 112.3 112.2 115.8 115.0 113.6 113.6 107.1 108.5 111.8 109.4 112.0 106.2 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 115.7 112.9 112.5 114.1 114.3 114.3 114.8 115.6 116.0 116.3 116.8 117.2 117.7 118.9 101 Manufacturing excluding office and computing machines . . . 83.6 113.7 111.8 111.3 112.6 111.6 112.8 113.2 113.8 114.3 114.4 114.5 114.4 115.1 116.2 Gross value (billions of 1992 dollars, annual rates) MAJOR MARKETS 102 Products, total 2,001.9 2,260.5 2,219.7 2,203.1 2,240.3 2,220.1 2,249.1 2,255.7 2,274.2 2,276.1 2,272.9 2,273.4 2,268.3 2,291.7 2,301.0 103 Final 1,552.1 1,764.9 1,729.7 1,720.2 1,752.5 1,727.8 1,760.0 1,761.9 1,775.7 1,782.8 1,773.6 1,771.6 1,768.5 1,788.0 1,796.5 104 Consumer goods 1,049.6 1,164.7 1,155.8 1,144.1 1,163.2 1,150.9 1,164.3 1,165.5 1,172.5 1,171.6 1,165.5 1,163.0 1,160.5 1,175.3 1,180.0 105 Equipment 502.5 599.5 573.4 575.6 588.7 576.3 595.0 595.7 602.4 610.5 607.4 607.8 607.2 612.0 615.7 106 Intermediate 449.9 496.1 490.2 483.3 488.5 492.3 489.9 494.4 499.0 494.3 499.7 502.1 500.1 504.1 505.0 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. For ments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92. For a detailed the ordering address, see the inside front cover. The latest historical revision of the industrial description of the industrial production index, see "Industrial Production: 1989 Developproduction index and the capacity utilization rates was released in January 1997. See ments and Historical Revision," Federal Reserve Bulletin, vol. 76, (April 1990), pp. 187-204. "Industrial Production and Capacity Utilization: Historical Revision and Recent Develop- 2. Standard industrial classification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • March 1997 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1996 IItteemm 11999933 11999944 11999955 Feb. Mar. Apr. May June July Aug. Sept.' Oct/ Nov. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,199 1,372 1,332 1,417 1,423 1,459 1,452 1,415 1,457 1,423 1,399 1,362 1,418 2 One-family 987 1,068 997 1,087 1,097 1,115 1,098 1,085 1,073 1,078 1,040 1,011 1,025 3 Two-family or more 213 303 335 330 326 344 354 330 384 345 359 351 393 4 Started 1,288 1,457 1,354 1,514 1,439 1,511 1,478 1,490 1,470 1,533 1,461 1,385 1,514 5 One-family 1,126 1,198 1,076 1,183 1,163 1,209 1,144 1,209 1,150 1,239 1,138 1,088 1,161 6 Two-family or more 162 259 278 331 276 302 334 281 320 294 323 297 353 7 Under construction at end of period' 680 762 776 800 816 826 826 829 823 820 826 827 837 8 One-family 543 558 547 565 581 591 590 596 592 593 592 589 591 9 Two-family or more 137 204 229 235 235 235 236 233 231 227 234 238 246 10 Completed 1,193 1,347 1,313 1,328 1,391 1.350 1,408 1,418 1,447 1,445 1,377 1,362 1,391 11 One-family 1,040 1,160 1,066 1,052 1,112 1,073 1,120 1,128 1,145 1,151 1,118 1,117 1,122 12 Two-family or more 153 187 247 276 279 277 288 290 302 294 259 245 269 13 Mobile homes shipped 254 304 340 341 364 378 369 372 372 369 373 369 354 Merchant builder activity in one-family units 14 Number sold 666 670 665 784 713 740 734 733 780 820R 780 676 772 15 Number for sale at end of period1 293 337 372 355 368 369 362 356 353 343R 329 332 328 Price of units sold (thousands of dollars)2 16 Median 126.1 130.4 133.4 139.4 137.0 140.0 136.4 140.0 144.2 137.0R 138.6 140.0 144.8 17 Average 147.6 153.7 157.6 163.7 162.1 170.0 163.3 166.5 168.4 159.7R 168.2 165.7 173.8 EXISTING UNITS (one-family) 18 Number sold 3,800 3,946 3,801 3,940 4,200 4,200 4,280 4,160 4,150 4,140 4,030 3,970 4,010 Price of units sold (thousands of dollars)2 19 Median 106.5 109.6 112.2 114.0 115.7 116.5 117.6 122.9 121.5 122.3 117.8 116.6 117.4 20 Average 133.1 136.4 138.4 138.7 140.1 141.9 144.4 150.2 149.6 149.9 144.7 143.6 144.2 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 482,737 527,063 547,079 544,577 556,983 564,623 558,481 563,122 559,312r 564,715r 572,262 581,003 591,957 22 Private 362,587 400,007 410,197 411,248 419,726 424,233 418,120 423,106 419,293r 426,703r 428,361 434,282 441,614 23 Residential 210,455 238,873 236,598 238,558 245,881 248,013 247,486 246,909 244,93 lr 246,019r 246,407 244,552 247,562 24 Nonresidential 152,132 161,134 173,599 172,690 173,845 176,220 170,634 176,197 174,362r 180,684r 181,954 189,730 194,052 25 Industrial buildings 26,482 28,947 32,301 30,792 30,593 30,285 27,310 28,755 28,770r 27,082 29,656 33,012 30,939 2261 C O o th m er m b e u rc il i d al i n b g u s i ldings 5 2 3 6 , , 3 2 7 1 5 9 5 2 9 6 , , 7 9 2 6 8 1 6 2 7 6 , , 5 9 2 2 8 3 6 2 6 7 , , 4 4 6 7 1 0 6 2 5 7 , , 5 8 0 8 3 4 6 27 7 , , 4 5 5 6 7 5 6 2 5 7 , , 8 7 3 2 4 3 6 2 9 8 , , 2 5 8 3 0 3 6 2 8 8 , , 2 5 6 1 2 4 r r 7 2 2 9 , , 1 7 4 6 6 4 r r 7 2 0 9 , , 6 8 7 1 2 2 7 3 4 0 , , 3 3 0 8 9 8 7 3 6 2 , , 2 4 8 6 7 9 28 Public utilities and other 46,056 45,498 46,847 47,967 49,865 50,913 49,767 49,629 48,816r 51,692r 51,814 52,021 54,357 29 Public 120,151 127,056 136,884 133,329 137,257 140,390 140,361 140,016 140,020r 138,012r 143,901 146,721 150,343 30 Military 2,454 2,319 3,005 3,982 3,126 3,168 3,020 3,140 2,439r 2,307r 2,583 3,079 2,464 31 Highway 34,342 37,673 38,161 40,956 39,527 39,454 37,715 38,308 39,194r 36,507r 40,485 39,326 41,088 32 Conservation and development 5,908 6,370 6,389 5,455 5,811 5,956 5,756 6,004 5,793r 5,660r 5,473 6,143 5,963 33 Other 77,447 80,694 89,329 82,936 88,793 91,812 93,870 92,564 92,594r 93,538r 95,360 98,173 100,828 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 1996 1996 Dec. 1995 1996 1996 1 Dec. Dec. Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 (1982-84=100) 1 2.5 3.3 4.0 3.1 2.6 3.3 .1 .3 .3 .3 .3 158.6 2.1 4.3 3.2 4.6 5.3 3.9 .4 .5 .6 .3 .1 156.3 -1.3 8.6 15.8 8.4 -3.9 15.1 -.6 .0 .7 1.2 1.6 112.2 4 3.0 2.6 3.5 2.2 2.7 2.2 .1 .3 .2 .2 .1 167.0 1.7 1.1 2.6 -.3 .9 .9 -.1 .4 .1 .1 .1 141.5 6 33..66 33..33 33..44 33..99 33..22 2.9 .2 .2 .3 .2 .2 181.5 PRODUCER PRICES (1982=100) 7 2.3 2.8 2.5 2.2 1.8 5.3 ,4r .2 .4 .4 .5 132.7 8 1.9 3.4 .6 5.9 5.2 2.4 ,8r ,3r .8 -.1 -.1 135.5 9 1.1 12.0 17.8 -.5 1.0 33.7 ,7r .r 1.9 2.3 3.1 85.9 in 2.8 .7 -.3 2.2 .8 .3 .1 .2 -.1 .0 .2 144.9 nn 22..22 .5 ..00 .6 11..22 .0 .r ,lr -.4 .3 .1 138.8 Intermediate materials p 3.0 .7 -1.0 .0 .3 3.2 .2 .2 .1 .3 .4 126.1 1133 33..22 -.9 --33..55 .0 -.3 .3 .1 .1 -.1 .1 .1 133.9 Crude materials 14 12.9 -.9 -4.1 60.1 -7.3 -30.5 — .6r -3.9r -2.7 -1.9 -4.3 113.7 15 3.7 43.2 52.8 -14.1 21.7 163.1 2.4r -2.7r 1.5 7.7 16.5 103.8 1166 Other --44..22 --55..66 --1100..66 -8.8 --22..66 .8 ,8r ,3r .3 -.3 .2 152.4 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 • March 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 7,616.3 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 5,165.4 3 Durable goods 530.7 580.9 606.4 615.8 612.8 625.2 637.6 630.5 4 Nondurable goods 1,368.9 1,429.7 1,485.9 1,491.2 1,494.2 1,522.1 1,544.7 1,546.5 5 Services 2,554.6 2,690.3 2,832.6 2,850.9 2,883.5 2,913.2 2,957.1 2,988.5 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 1,156.2 7 Fixed investment 850.5 954.9 1,028.2 1,036.6 1,046.2 1,070.7 1,088.0 1,119.6 8 Nonresidential 598.8 667.2 738.5 746.3 749.7 769.0 773.8 807.0 9 Structures 171.8 180.2 199.7 202.5 204.0 208.4 207.4 213.5 10 Producers' durable equipment 427.0 487.0 538.8 543.8 545.7 560.6 566.3 593.5 11 Residential structures 251.7 287.7 289.8 290.3 296.5 301.7 314.2 312.6 12 Change in business inventories 20.6 59.5 37.0 38.2 17.8 -1.7 8.0 36.6 13 Nonfarm 26.8 48.0 39.6 41.5 19.9 2.7 11.3 35.4 14 Net exports of goods and services -62.7 -94.4 -94.7 -87.6 -67.2 -86.3 -99.2 -120.2 IS Exports 657.8 719.1 807.4 819.0 837.0 839.5 850.0 844.3 16 Imports 720.5 813.5 902.0 906.6 904.2 925.8 949.2 964.5 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 1,414.8 18 Federal 522.6 516.4 516.6 516.8 507.7 518.6 529.6 525.5 19 State and local 767.8 798.4 841.7 847.7 855.7 865.1 879.2 889.3 By 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 7,579.6 21 Goods 2,401.4 2,534.4 2,662.2 2,688.8 2,698.0 2,749.3 2,782.0 2,785.0 22 Durable 1,014.3 1,086.2 1,147.3 1,167.2 1,166.4 1,192.1 1,219.1 1,225.5 23 Nondurable 1,387.2 1,448.3 1,515.0 1,521.6 1,531.7 1,557.1 1,562.9 1,559.5 24 Services 3,584.0 3,746.5 3,926.9 3,950.2 3,992.4 4,027.9 4,087.0 4,122.0 25 Structures 547.0 595.3 627.6 632.6 642.3 651.4 668.0 672.6 26 Change in business inventories 20.6 59.5 37.0 38.2 17.8 -1.7 8.0 36.6 27 Durable goods 15.7 31.9 34.9 29.2 27.3 12.3 9.9 34.7 28 Nondurable goods 4.9 27.7 2.2 9.1 -9.4 -14.0 -1.9 2.0 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 6,928.4 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 6,203.0 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 4,482.9 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 3,659.6 33 Government and government enterprises 584.2 602.5 621.7 624.1 626.9 634.0 638.9 644.6 34 Other 2,511.1 2,654.8 2,811.5 2,829.9 2,874.2 2,906.1 2,967.5 3,015.1 35 Supplement to wages and salaries 714.2 752.4 789.5 793.7 800.1 804.1 814.4 823.3 36 Employer contributions for social insurance 333.3 350.2 365.5 367.8 369.8 375.0 380.4 384.6 37 Other labor income 380.9 402.2 424.0 425.9 430.2 429.1 434.0 438.6 38 Proprietors' income1 420.0 450.9 478.3 479.6 486.7 499.5 515.2 526.3 39 Business and professional1 388.1 415.9 449.3 451.5 454.9 461.1 469.4 474.6 40 Farm1 32.0 35.0 29.0 28.1 31.8 38.4 45.8 51.8 41 Rental income of persons2 102.5 116.6 122.2 120.9 125.8 126.9 124.5 127.0 42 Corporate profits1 464.4 529.5 586.6 612.5 611.8 645.1 655.8 661.2 43 Profits before tax3 464.3 531.2 598.9 607.2 604.2 642.2 644.6 635.6 44 Inventory valuation adjustment -6.6 -13.3 -28.1 -9.3 -8.8 -17.4 -11.0 2.0 45 Capital consumption adjustment 6.7 11.6 15.9 14.6 16.5 20.4 22.3 23.6 46 Net interest 398.9 394.9 403.6 400.7 401.9 399.5 402.3 405.6 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 Qi 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 6,501.4 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 3,659.6 3 Commodity-producing industries 781.3 824.9 863.5 866.7 873.9 878.7 900.3 911.0 4 Manufacturing 593.1 621.1 648.4 650.1 654.7 654.8 671.8 678.5 Distributive industries 698.4 739.2 783.7 789.3 800.7 810.5 822.3 832.4 6 Service industries 1,026.7 1,075.2 1,161.6 1,171.1 1,198.6 1,215.1 1,244.9 1,271.6 7 Government and government enterprises 584.2 602.5 621.7 624.1 626.9 634.0 638.9 644.6 Other labor income 380.9 402.2 424.0 425.9 430.2 429.1 434.0 438.6 9 Proprietors' income1 420.0 450.9 478.3 479.6 486.7 499.5 515.2 526.3 10 Business and professional1 388.1 415.9 449.3 451.5 454.9 461.1 469.4 474.6 11 Farm1 32.0 35.0 29.0 28.1 31.8 38.4 45.8 51.8 1?, 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 648.1 663.7 717.1 719.9 727.2 726.1 733.1 742.9 15 Transfer payments 910.7 956.3 1,022.6 1,029.9 1,041.4 1,063.0 1,075.6 1,085.1 16 Old age survivors, disability, and health insurance benefits 444.4 472.9 507.4 510.7 516.1 529.9 536.3 541.7 17 LESS: Personal contributions for social insurance 259.6 278.1 294.5 296.2 298.8 301.0 305.8 309.7 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 6,501.4 19 LESS: Personal tax and nontax payments 689.9 731.4 794.3 798.4 807.2 824.9 870.6 872.5 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 5,628.9 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 5,329.8 22 EQUALS: Personal saving 214.4 189.4 249.3 241.9 282.6 265.4 241.1 299.1 MEMO Per capita (chained 1992 dollars) 7.3 Gross domestic product 24,734.3 25,349.8 25,628.7 25,726.7 25,684.5 25,753.3 25,990.0 26,066.2 24 Personal consumption expenditures 16,806.7 17,158.4 17,399.5 17,453.8 17,459.9 17,570.2 17,675.7 17,657.9 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 19,242.0 26 Saving rate (percent) 4.5 3.8 4.7 4.5 5.2 4.8 4.3 5.3 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 1,314.0 28 Gross private saving 962.4 1,006.7 1,071.8 1,085.9 1,138.9 1,133.8 1,121.6 1,196.1 7.9 Personal saving 214.4 189.4 249.3 241.9 282.6 265.4 241.1 299.1 30 Undistributed corporate profits1 103.3 123.2 140.6 159.6 158.4 171.8 176.3 182.5 31 Corporate inventory valuation adjustment -6.6 -13.3 -28.1 -9.3 -8.8 -17.4 -11.0 2.0 Capital consumption allowances 32 Corporate 417.0 441.0 454.0 456.9 463.6 465.6 471.0 477.2 33 Noncorporate 223.1 237.7 225.2 224.7 233.4 229.1 233.2 237.4 34 Gross government saving -26.9 49.6 80.0 82.7 81.7 84.1 122.9 117.8 35 Federal -187.4 -119.6 -87.9 -84.6 -80.7 -82.0 -54.1 -48.4 36 Consumption of fixed capital 68.2 70.6 73.8 73.8 73.8 73.2 72.6 72.3 37 Current suiplus or deficit (-), national accounts -255.6 -190.2 -161.7 -158.5 -154.5 -155.2 -126.7 -120.8 38 State and local 160.5 169.2 167.9 167.3 162.4 166.1 177.0 166.3 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 89.2 41 Gross investment 993.S 1,090.4 1,150.9 1,161.5 1,173.9 1,167.9 1,187.0 1,215.9 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 1,156.2 43 210.6 212.3 221.9 224.7 220.1 228.8 235.1 234.2 44 Net foreign investment -88.2 -136.4 -136.3 -138.1 -110.2 -129.9 -144.2 -174.6 45 Statistical discrepancy 58.0 34.1 -.9 -7.1 -46.7 -50.0 -57.5 -98.1 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 • March 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 Q3 Q4 Ql Q2 Q3P 1 Balance on current account -99,936 -148,405 -148,154 -37,688 -30,435 -34,869 -40,210 -47,961 2 Merchandise trade balance2 -132,609 -166,121 -173,424 -42,548 -38,026 -42,730 -46,996 -51,593 3 Merchandise exports 456,832 502,463 575,940 144,984 149,422 150,028 153,095 149,937 4 Merchandise imports -589,441 -668,584 -749,364 -187,532 -187,448 -192,758 -200,091 -201,530 Military transactions, net 2,757 3,270 3,477 1,120 978 490 726 710 6 Other service transactions, net 59,691 59,779 64,776 17,093 17,657 18,014 17,694 17,049 7 Investment income, net 9,742 -4,159 -8,016 -4,361 -1,890 262 -2,264 -4,705 8 U.S. government grants -16,823 -15,816 -10,959 -2,933 -2,799 -4,259 -2,364 -2,502 y U.S. government pensions and other transfers -4,081 -4,544 -3,420 -964 -731 -960 -1,029 -1,034 10 Private remittances and other transfers -16,736 -19,506 -20,696 -5,095 -5,624 -5,685 -5,976 -5,886 11 Change in U.S. government assets other than official reserve assets, net (increase, —) -342 -341 -280 252 -199 -152 -353 72 12 Change in U.S. official reserve assets (increase, -) -1,379 5,346 -9,742 -1,893 191 17 -523 7,489 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -537 -441 -808 362 -147 -199 -133 848 15 Reserve position in International Monetary Fund -44 494 -2,466 -991 -163 -849 -220 -183 16 Foreign currencies -797 5,293 -6,468 -1,264 501 1,065 -170 6,824 17 Change in U.S. private assets abroad (increase, —) -192,889 -155,700 -297,834 -37,954 -98,206 -68,615 -49,850 -62,237 18 Bank-reported claims3 29,947 -8,161 -69,146 8,476 -7,272 1,714 -74 --3322,,448822 iy Nonbank-reported claims 1,581 -32,804 -34,219 7,500 -14,278 -12,707 -3,374 20 U.S. purchases of foreign securities, net -146,253 -60,270 -98,960 -35,839 -32,539 -34,420 -20,200 -21,314 21 U.S. direct investments abroad, net -78,164 -54,465 -95,509 -18,091 -44,117 -23,202 -26,202 -8,441 22 Change in foreign official assets in United States (increase, +) 72,153 40,253 109,757 39,186 11,369 52,021 13,566 23,642 23 U.S. Treasury securities 48,952 30,745 68,813 20,489 12,984 55,600 -3,384 25,335 24 Other U.S. government obligations 4,062 6.077 3,734 518 764 52 1,258 1,217 25 Other U.S. government liabilities4 1,713 2,344 1,082 -71 1,249 -156 220 755 26 Other U.S. liabilities reported by U.S. banks3 14,841 3,560 32,862 18,478 -3,908 -3,264 14,187 -2,080 27 Other foreign official assets5 2,585 -2,473 3,266 -228 280 -211 1,285 -1,585 28 Change in foreign private assets in United States (increase, +) 178,843 245,123 314,705 79,630 87,860 47,450 86,983 100,357 2y U.S. bank-reported liabilities3 20,859 111,842 25,283 -21,542 32,765 -35,571 1,925 226655 30 U.S. nonbank-reported liabilities 10,489 -7,710 34,578 6,945 11,272 6,506 7,296 31 Foreign private purchases of U.S. Treasury securities, net 24,381 34,225 99,340 37,269 1,734 11,832 31,212 41,982 32 Foreign purchases of other U.S. securities, net 80,092 57,006 95,268 31,971 27,321 35,993 29,122 32,961 33 Foreign direct investments in United States, net 43,022 49,760 60,236 24,987 14,768 28,690 17,428 25,149 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 35 Discrepancy 43,550 13,724 31,548 -41,533 29,420 4,148 -9,613 -21,362 36 Due to seasonal adjustment -7,407 1,153 6,279 -801 -8,699 37 Before seasonal adjustment 43,550 13,724 31,548 -34,126 28,267 -2,131 -8,812 -12,663 MEMO Changes in official assets 38 U.S. official reserve assets (increase, —) --11,,337799 55,,334466 --99,,774422 --11,,889933 191 17 --552233 77,,448899 3y Foreign official assets in United States, excluding line 25 (increase, +) 70,440 37,909 108,675 39,257 10,120 52,177 13,346 22,887 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -3,717 -1,529 3,959 6,147 -1,435 -992 5,555 5,347 1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38^10. 4. Associated primarily with military sales contracts and other transactions arranged with 2. Data are on an international accounts basis. The data differ from the Census basis data, or through foreign official agencies. shown in table 3.11, for reasons of coverage and timing. Military exports are excluded from 5. Consists of investments in U.S. corporate stocks and in debt securities of private merchandise trade data and are included in line 5. corporations and state and local governments. 3. Reporting banks include all types of depository institutions as well as some brokers and SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current dealers. Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A51 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1996 IItteemm 11999933 11999944 11999955 May June July Aug. Sept. Oct. Nov.P 1 Goods and services, balance -72,037 -104,381 -105,064 -10,677 -8,370 -11,755 -10,493 -11,437 -8,007 -8,400 2 Merchandise -132,607 -166,123 -173,424 -16,791 -14,620 -17,492 -16,423 -17,524 -14,093 -14,744 3 Services 60,570 61,742 68,360 6,114 6,250 5,737 5,930 6,087 6,086 6,344 4 Goods and services, exports 642,953 698,301 786,529 70,120 69,726 67,249 69,679 68,839 71,722 71,972 5 Merchandise 456,834 502,462 575,939 51,384 50,972 48,779 51,095 50,297 52,876 52,732 6 Services 186,119 195,839 210,590 18,736 18,754 18,470 18,584 18,542 18,846 19,240 7 Goods and services, imports -714,990 -802,682 -891,593 -80,797 -78,096 -79,004 -80,172 -80,276 -79,729 -80,372 8 Merchandise -589,441 -668,585 -749,363 -68,175 -65,592 -66,271 -67,518 -67,821 -66,969 -67,476 9 Services -125,549 -134,097 -142,230 -12,622 -12,504 -12,733 -12,654 -12,455 -12,760 -12,896 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 May June July Aug. Sept. Oct. Nov. Dec.p 1 Total 73,442 74,335 85,832 83,468 83,455 85,099 76,781 75,509 75,558 75,444 75,090 2 Gold stock, including Exchange Stabilization Fund1 11,053 11,051 11,050 11,051 11,050 11,050 11,050 11,050 11,049 11,049 11,049 3 Special drawing rights2'3 9,039 10,039 11,037 11,037 11,046 11,216 10,307 10,177 10,226 10,386 10,312 4 Reserve position in International Monetary Fund2 11,818 12,030 14,649 15,227 15,282 15,665 15,597 15,421 15,517 15,516 15,435 5 Foreign currencies4 41,532 41,215 49,096 46,153 46,077 47,168 39,827 38,861 38,765 38,493 38,294 1. Gold held "under earmark" at Federal Reserve Banks for foreign and international SDR holdings and reserve positions in the IMF also have been valued on this basis since July accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold 1974. stock is valued at $42.22 per fine troy ounce. 3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year 2. Special drawing rights (SDRs) are valued according to a technique adopted by the indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979— International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of $1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs. exchange rates for the currencies of member countries. From July 1974 through December 4. Valued at current market exchange rates. 1980, sixteen cuiTencies 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 May June July Aug. Sept. Oct. Nov. Dec.p 1 Deposits 386 250 386 160 182 166 171 265 176 170 167 Held in custody 2 U.S. Treasury securities2 379,394 441,866 522,170 578,608 572,839 580,277 590,367 609,801 619,987 634,165 638,049 3 Earmarked gold3 12,327 12,033 11,702 11,339 11,296 11,273 11,217 11,210 11,204 11,198 11,197 1. Excludes deposits and U.S. Treasury securities held for international and regional 3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not organizations. included in the gold stock of the United States. 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury securities, in each case measured at face (not market) value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics • March 1997 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1996 IItteemm 11999944 11999955 Mayr June' July' Aug/ Sept/ Oct. Nov.p 1 Total1 520,934 630,867 689,743 696,384 699,525 703,875 719,557 722,700 737,696 By type 2 Liabilities reported by banks in the United States 73.386 107,343 104,951 118,258 113,445 111,034 116,328 109,936 107,244 3 U.S. Treasury bills and certificates3 139,571 168,534 188,321 187,171 186,061 189,726 182,122 186,180 197,692 U.S. Treasury bonds and notes 4 Marketable 254,059 293,690 334,469 327,821 337,450 341,037 358,225 363,063 366,903 5 Nonmarketable4 6,109 6,491 5,903 5,941 5,980 6,018 6,057 5,890 5,928 6 U.S. securities other than U.S. Treasury securities5 47,809 54,809 56,099 57,193 56,589 56,060 56,825 57,631 59,929 By area 1 Europe' 215,374 222,406 244,222 245,368 245,405 246,760 246,342 246,542 251,104 8 Canada 17,235 19,473 21,670 21,250 20,153 21,662 21,351 21,764 21,360 9 Latin America and Caribbean 41,492 66,720 68,053 70,153 68,020 69,076 69,338 70,478 76,977 10 Asia 236,824 310,966 343,206 346,103 350,747 354,266 369,471 371,210 375,252 11 Africa 4,180 6,296 7,173 6,997 6,910 6,722 6,944 6,587 7,033 12 Other countries 5,827 5,004 5,417 6,511 8,288 5,387 6,109 6,117 5,968 1. Includes the Bank for International Settlements. Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, 1993, 30-year maturity issue. negotiable time certificates of deposit, and borrowings under repurchase agreements. 5. Debt securities of U.S. government corporations and federally sponsored agencies, and 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official U.S. corporate stocks and bonds. institutions of foreign countries. SOURCE. Based on U.S. Department of the Treasury data and on data reported to the 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of department by banks (including Federal Reserve Banks) and securities dealers in the United zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning States, and on the 1989 benchmark survey of foreign portfolio investment in the United March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue; States. 3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS Reported by Banks in the United States1 Payable in Foreign Currencies Millions of dollars, end of period 1995 1996 IItteemm 11999922 11999933 11999944 Dec/ Mar. June Sept/ 1 Banks' liabilities 72,796 78,259 89,308 109,763 107,514 111,651 111,140 2 Banks' claims 62,799 62,017 60,711 74,016 69,159 65,864 68,101 3 Deposits 24,240 20,993 19,661 22,696 22,208 20,876 23,837 4 Other claims 38,559 41,024 41,050 51,320 46,951 44,988 44,264 5 Claims of banks' domestic customers2 4,432 12,854 10,878 6,145 6,353 7,464 7,130 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 May June' July Aug. Sept. Oct. Nov.P BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 926,672 l,014,996r l,099,548r l,095,072r 1,097,671 l,088,244r l,074,289r l,089,888r 1,120,193 1,114,238 2 Banks' own liabilities 626,919 718,59 lr 753,460' 722,575r 731,143 718,715' 701,959' 722,802' 753,523 738,459 3 Demand deposits 21,569 23,386 24,448 23,328r 27,369 24,992' 23,147 25,504' 23,868 27,586 4 Time deposits2 175,106 186,512 192,556r 180,650r 189,456 193,491' 196,561' 192,463' 197,386 192,826 Other3 111,971 113,215 140,115r 144,177r 149,173 144,309' 129,039' 148,499' 146,521 141,085 6 Own foreign offices4 318,273 395,478r 396,34 lr 374,420' 365,145 355,923' 353,212' 356,336' 385,748 376,962 7 Banks' custodial liabilities5 299,753 296,405 346,088r 372.497 366,528 369,529' 372,330 367,086 366,670 375,779 8 U.S. Treasury bills and certificates6 117766,,773399 162,938 119977,,335555 220,823 218,608 217,548 219,949 212,478 214,609 225,046 9 Other negotiable and readily transferable instruments7 36,289 42,539 52,200r 49,655 51,528 56,345 55,552 57,702 54,045 54,570 10 Other 86,725 90,928 96,533 102,019 96,392 95,636' 96,829 96,906 98,016 96,163 11 Nonmonetary international and regional organizations8. .. 10,936 8,606 11,039 11,994 12,158 11,742 12,675 14,443 16,080 14,322 12 Banks' own liabilities 5,639 8,176 10,347 11,207 10,914 10,545 12,084 13,843 15,249 12,984 13 Demand deposits 15 29 21 34 123 22 49 26 67 46 14 Time deposits2 2,780 3,298 4,656 3,442 4,052 3,747 4,738 5,441 6,005 4,906 16 Other3 2,844 4,849 5,670 7,731 6,739 6,776 7,297 8,376 9,177 8,032 16 Banks' custodial liabilities5 5,297 430 692 787 1,244 1,197 591 600 831 1,338 17 U.S. Treasury bills and certificates6 44,,227755 281 350 376 874 865 345 399 600 1,088 18 Other negotiable and readily transferable instruments7 1,022 149 341 390 370 330 246 201 231 226 19 Other 0 0 1 21 0 2 0 0 0 24 20 Official institutions9 220,821 212,957 275,877 293,272r 305,429 299,506' 300,760' 298,450' 296,116 304,936 21 Banks' own liabilities 64,144 59,935 83,396 81,919r 91,925 83,812' 81,462' 85,969' 83,647 82,887 22 Demand deposits 1,600 1,564 2,098 1,504 2,211 2,211 1,459 2,049 1,316 2,181 23 Time deposits2 21,653 23,511 30,716 32,658r 38,916 37,137' 37,708' 34,902' 35,550 35,582 24 Other3 40,891 34,860 50,582 47,757r 50,798 44,464' 42,295' 49,018' 46,781 45,124 25 Banks' custodial liabilities5 156,677 153,022 192,481 211,353 213,504 215,694 219,298 212,481 212,469 222,049 26 U.S. Treasury bills and certificates6 115511,,110000 139,571 168,534 188,321 187,171 186,061 118899,,772266 182,122 186,180 197,692 27 Other negotiable and readily transferable instruments7 5,482 13,245 23,603 22,661 25,900 29,262 29,281 30,051 25,085 24,000 28 Other 95 206 344 371 433 371 291 308 1,204 357 29 Banks10 592,171 678,532r 691,464r 661,402r 654,108 646,031' 635,007' 649,430' 678,641 668,466 30 Banks' own liabilities 478,755 563,617r 567,886r 532,085' 530,411 523,939' 510,274' 524,645' 554,225 547,482 31 Unaffiliated foreign banks 160,482 168,139 171,545r 157,665' 165,266 168,016' 157,062' 168,309' 168,477 170,520 32 Demand deposits 9,718 10,633 11,758 10,663 12,380 11,809 11,116 12,764 11,156 13,304 33 Time deposits2 105,262 111,171 103,472r 88,765' 90,481 95,128' 94,867' 91,906' 96,223 94,774 34 Other3 45,502 46,335 56,315r 58,237' 62,405 61,079' 51,079' 63,639' 61,098 62,442 35 Own foreign offices4 318,273 395,478' 396,34 lr 374,420' 365,145 355,923' 353,212' 356,336' 385,748 376,962 36 Banks' custodial liabilities5 113,416 114,915 123,578 129,317 123,697 122,092' 124,733 124,785 124,416 120,984 37 U.S. Treasury bills and certificates6 1100,,771122 11,264 15,872 17,584 18,241 18,091 18,670 18,556 16,865 14,227 38 Other negotiable and readily transferable instruments7 17,020 14,506 13,035 11,775 11,021 10,359 10,864 11,298 12,455 13,295 39 Other 85,684 89,145 94,671 99,958 94,435 93,642' 95,199 94,931 95,096 93,462 40 Other foreigners 102,744 114,901 121,168r 128,404' 125,976 130,965' 125,847' 127,565' 129,356 126,514 41 Banks' own liabilities 78,381 86,863 91,83 lr 97,364' 97,893 100,419' 98,139' 98,345' 100,402 95,106 42 Demand deposits 10,236 11,160 10,571 11,127' 12,655 10,950' 10,523 10,665' 11,329 12,055 43 Time deposits2 45,411 48,532 53,712r 55,785' 56,007 57,479' 59,248' 60,214' 59,608 57,564 44 Other3 22,734 27,171 27,548 30,452 29,231 31,990 28,368 27,466 29,465 25,487 45 Banks' custodial liabilities5 24,363 28,038 29,337r 31,040 28,083 30,546 27,708 29,220 28,954 31,408 46 U.S. Treasury bills and certificates6 1100,,665522 1111,,882222 12,599 14,542 1122,,332222 12,531 1111,,220088 11,401 1100,,996644 12,039 47 Other negotiable and readily transferable instruments7 12,765 14,639 15,221r 14,829 14,237 16,394 15,161 16,152 16,274 17,049 48 Other 946 1,577 1,517 1,669 1,524 1,621 1,339 1,667 1,716 2,320 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 17,567 17,895 9,103 9,375' 9,645 7,922 8,276 10,466 11,657 10,540 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 • March 1997 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1996 IItteemm 11999933 11999944 11999955 May June July Aug. Sept. Oct. Nov.p AREA 50 Total, all foreigners 926,672 l,014,996r l,099,548r l,095,072r l,097,671r l,088,244r l,074,289r l,089,888r l,120,193r 1,114,238 51 Foreign countries 915,736 l,006,390r l,088,509r l,083,078r l,085,513r l,076,502r 1,061,614' l,075,445r l,104,113r 1,099,916 52 Europe 377,911 390,869r 362,819r 367,090r 363,220r 355,894r 355,380' 350,316' 371,278' 379,444 53 Austria 1,917 3,588 3,537 3,624 3,209 3,002 4,683 6,017 6,816' 6,249 54 Belgium and Luxembourg 28,670 21,877 24,792r 25,955 20,856 22,093 25,155 22,482 23,232' 21,304 55 Denmark 4,517 2,884 2,921 2,645 2,796 2,871 2,501 2,652 1,802 2,790 56 Finland 1,872 1,436 2,831 2,188 1,589 1,200 1,113 812 1,509 1,561 57 France 40,316 44,365 39,218 39,634r 40,583r 36,342r 37,363' 37,094' 41,069' 38,970 58 Germany 26,685 27,109 24,035 23,950 25,876 24,375 23,128 23,599 23,522' 21,714 59 Greece 1,519 1,400 2,014 1,665 1,690 1,811 1,722 1,854 1,666' 2,221 60 Italy 11,759 10,885 10,868 11,039 12,103 12,785 12,552 12,509 12,793 10,280 61 Netherlands 16,096 16,033 13,745 12,575 12,159 11,863 11,460 9,626 12,017' 11,139 62 Norway 2,966 2,338 1,394 828 1,388 1,435 1,556 1,622 1,552 1,880 63 Portugal 3,366 2,846 2,761 1,858 1,401 1,784 1,328 1,473 1,388 1,728 64 Russia 2,511 2,726 7,948 7,259 6,938 6,047 4,988 4,761 5,602 8,215 65 Spain 20,496 14,675 10,011 19,004 20,314 19,366 17,505 20,359 17,665 18,249 66 Sweden 2,738 3,094 3,246 2,410 2,693 2,738 1,591' 1,814' 1,424 1,525 67 Switzerland 41,560 40,724 43,625 37,097 39,006 39,626 39,074' 42,226' 32,541 38,162 68 Turkey 3,227 3,341 4,124 4,669 4,926 5,619 7,272 7,992 8,019 7,311 69 United Kingdom 133,993 163,733r 139,183r 145,688r 143,258r 137,668r 136,242' 132,424' 158,009' 164,654 70 Yugoslavia" 372 245 177 146 217 208 207 214 216 254 71 Other Europe and other former U.S.S.R.12 33,331 27,770 26,389 24,856 22,218 25,061 25,940 20,786 20,436 21,238 72 Canada 20,235 24,768 30,468 33,178r 33,391 28,811 30,727 33,199 35,153 33,010 73 Latin America and Caribbean 362,238 423,847 440,212 433,041r 432,734r 438,641r 424,120' 433,522' 444,445' 437,861 74 Argentina 14,477 17,203 12,235 11,649 13,579 12,501 13,320 11,989 11,701' 13,853 75 Bahamas 73,820 104.014 94,991 86,316r 85,265r 93,362r 87,994 86,625 101,007 91,162 76 Bermuda 8,117 8,424 4,897 4,998 4,312 4,205 4,150 4,880 4,910 6,442 77 Brazil 5,301 9,145 23,797 20,105 25,902 23,183 24,518 23,817 24,083' 26,889 78 British West Indies 193,699 229,599 239,083 243,437r 234,550r 234,205' 227,024' 233,782 229,476' 226,485 79 Chile 3,183 3,127 2,826 2,855r 2,921 2,833 2,462 3,205 2,767 2,721 80 Colombia 3,171 4.615 3,659 3,393 3,642 3,329 3,263 2,889 2,968 2,800 81 Cuba 33 13 8 8 10 10 14 33 17 18 82 Ecuador 880 875 1,314 1,283 1,301 1,405 1,433 1,449 1,383 1,566 83 Guatemala 1,207 1.121 1,275 1,073 1,073 1,092 1,176 1,181 1,207 1,219 84 Jamaica 410 529 481 550 534 562 625 623 580 561 85 Mexico 28,019 12.227 24,560 23,21 lr 24,77 T 26,312r 24,399' 26,808' 27,680' 27,971 86 Netherlands Antilles 4,686 5,217 4,673r 4,723r 5,163r 5,532r 3,615' 5,290' 5,078' 4,433 87 Panama 3,582 4,551 4,265 3,846 3,878 3,852 3,994 3,950 4,060 3,993 88 Peru 929 900 974 1,064 1,013 1,029 1,077 936 1,016 947 89 Uruguay 1,611 1,597 1,836 1,757 1,769 1,836 1,799 1,751 1,846 1,752 90 Venezuela 12,786 13,986 11,808 14,645 14,899 15,261 15,029 15,596 16,375 17,167 91 Other 6,327 6,704 7,530r 8,128r 8,152r 8,132r 8,228 8,718 8,291' 7,882 92 Asia 114444,,552277 154.346 240,595r 223355,,558800'' 239,593r 223366,,000066'' 237,624' 224433,,220088'' 223399,,441166'' 223333,,778844 China 93 Mainland 4,011 10.066 33,750 24,857 25,483 28,587 34,224 32,068 26,998' 29,411 94 Taiwan 10,627 9.844 11,714 14,625r 16,650r 16,125' 14,775' 15,721' 15,450' 16,647 95 Hong Kong 17,132 17.104 20,197r 18,332r 18,216r 17,058' 18,609' 17,485' 17,053' 18,596 96 1,114 2,338 3,373 3,938 4,012 3,954 4,012 3,793 3,709 3,831 97 Indonesia 1,986 1,587 2,708 2,374 2,316 2,561 2,161 2,204 2,436 2,406 98 Israel 4,435 5,157 4,041 5,090 5,168 4,444 4,364 4,134 7,162 5,722 99 Japan 61,466 62,981 109,193 11 l,432r 114,13lr 112,737' 109,262' 112,537' 112,600' 103,866 100 Korea (South) 4,913 5,124 5,749 5,705r 6,679r 5,622' 5,406 5,908 5,545 5,867 101 Philippines 2,035 2,714 3,092' 2,897 2,970 3,041 2,539 3,429 3,191 3,264 102 Thailand 6,137 6,466 12,279 13,387 12,253 11,713 10,691 11,759 11,972 12,729 103 Middle Eastern oil-exporting countries13 15,822 15,494 15,582 14,234 13,379 12,947 13,891 14,715 13,017' 13,156 104 Other 14,849 15,471 18,917 18,709r 18,336' 17,217' 17,690' 19,455 20,283' 18,289 105 Africa 6,633 6,524 7,641 7,404 7,509 7,558 7,259 7,440 7,058 7,667 106 Egypt 2,208 1,879 2,136 1,873 1,831 2,114 1,920 1,894 1,904 1,901 107 Morocco 99 97 104 113 115 133 121 78 74 66 108 South Africa 451 433 739 745 666 648 632 482 435 640 109 Zaire 12 9 10 16 6 13 6 6 11 10 110 Oil-exporting countries14 1,303 1,343 1,797 1,887 2,013 1,928 2,075 2,051 1,940 2,381 111 Other 2,560 2,763 2,855 2,770 2,878 2,722 2,505 2,929 2,694 2,669 112 Other 4,192 6,036 6,774 6,785 9,066 9,592 6,504' 7,760 6,763 8,150 113 Australia 3,308 5,142 5,647 5,757 7,981 8,387 5,465' 5,522 4,786 6,203 114 Other 884 894 1,127 1,028 1,085 1,205 1,039 2,238 1,977 1,947 115 Nonmonetary international and regional organizations. . . 10,936 8,606 11,039 11,994 12,158 11,742 12,675 14,443 16,080' 14,322 116 International" 6,851 7,537 9,300 10,572 10,824 10,303 10,988 12,761 14,301' 12,524 117 Latin American regional16 3,218 613 893 649 527 831 1,024 1,193 1,304 1,172 118 Other regional17 867 456 846 773 807 608 663 489 475' 626 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 States' Payable in U.S. Dollars Millions of dollars, end of period 1996 AArreeaa oorr ccoouunnttrryy 11999933 11999944 11999955 May Juner Julyr Aug.r Sept.1" Oct. Nov.p 1 Total, all foreigners 488,497 483,220r 532,539r 519,755r 536,045 544,126 546,607 544,717 563,438 575,084 2 Foreign countries 486,092 478,629r 530,608r 516,261r 533,016 542,012 544,575 543,019 560,360 573,611 3 Europe 123,741 123,358r 132,150 134,281r 146,160 143,424 150,054 155,277 165,634 168,730 4 Austria 412 692 565 1,212 1,088 1,128 849 988 1,197 1,097 5 Belgium and Luxembourg 6,532 6,738 7,624 8,711 6,921 7,021 7,018 6,903 6,828 6,403 6 Denmark 382 1,129 403 482 432 319 230 408 480 651 7 Finland 594 512 1,055 1,282 1,013 1,629 1,296 1,350 1,068 1,303 8 France 11,822 12,146 15,033 11,946r 11,767 10,570 11,570 12,078 12,792 12,123 9 Germany 7,724 7,608 9,263 8,099 11,831 9,497 7,559 8,670 8,546 7,195 10 Greece 691 604 469 554 563 527 433 397 426 571 11 Italy 8,834 6,043 5,370 6,172 5,721 6,023 6,625 5,870 5,007 5,918 12 Netherlands 3,063 2,959 5,346 5,618 6,546 6,360 6,565 6,956 7,386 7,350 13 Norway 396 504 665 933 1,243 1,397 1,342 1,199 1,617 1,894 14 Portugal 834 938 888 813 704 667 548 484 517 341 15 Russia 2,310 973 660 482 440 514 794 1,135 1,413 1,533 16 Spain 3,717 3,530 2,166 3,158 2,519 3,341 3,073 4,152 3,885 4,181 17 Sweden 4,254 4,098 2,080 2,526 2,799 2,802 2,726 2,976 2,919 2,882 18 Switzerland 6,605 5,746 7,474 8,713 12,145 9,520 9,266 10,930 16,110 18,071 19 Turkey 1,301 878 803 985r 1,042 1,018 1,044 1,083 962 1,131 20 United Kingdom 62,013 66,824r 67,784 69,275r 75,689 77,775 85,355 85,732 89,961 92,182 21 Yugoslavia2 473 265 147 204 164 159 87 87 118 112 22 Other Europe and other former U.S.S.R.3 1,784 1,171 4,355 3,116 3,533 3,157 3,674 3,879 4,402 3,792 23 Canada 18,617 18,490 20,874 20,882r 22,242 23,981 25,132 25,343 23,066 22,105 24 Latin America and Caribbean 225,238 223,523 256,944r 238,415r 239,977 253,177 249,693 240,634 243,584 253,324 25 Argentina 4,474 5,844 6,439 6,037 6,448 6,592 7,062 7,101 7,057 7,212 26 Bahamas 63,353 66,410 58,818 56,383 60,608 59,300 62,297 61,830 61,991 64,907 27 Bermuda 8,901 8,481 5,741 2,993 3,620 3,579 3,052 3,640 4,398 4,979 28 Brazil 11,848 9,583 13,297 14,194r 15,076 15,197 15,155 15,261 15,417 16,141 29 British West Indies 99,319 95,741 124,037r 110,899r 102,838 101,043 99,363 102,157 105,891 105,234 30 Chile 3,643 3,820 4,864r 4,352r 4,388 4,321 4,174 4,388 4,278 4,544 31 Colombia 3,181 4,004 4,550 4,523r 4,538 4,512 4,725 4,723 4,811 4,960 32 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 681 682 825 944r 962 897 932 965 957 952 34 Guatemala 288 366 457 461 452 463 476 507 546 568 35 Jamaica 195 258 323 345 359 346 335 339 362 237 36 Mexico 15,879 17,749 18,024r 16,873r 16,816 16,971 17,540 17,715 17,742 17,993 37 Netherlands Antilles 2,683 1,396 9,229 8,674 12,888 29,224 23,713 11,207 9,406 15,074 38 Panama 2,894 2,198 3,008 2,592 2,567 2,211 2,211 2,257 2,354 2,618 39 Peru 657 997 1,829 2,140r 2,395 2,568 2,463 2,541 2,563 2,618 40 Uruguay 969 503 466 602 623 589 562 530 547 551 41 Venezuela 2,910 1,831 1,661 1,279 1,390 1,402 1,728 1,513 1,636 1,626 42 Other 3,363 3,660 3,376r 5,124r 4,009 3,962 3,905 3,960 3,628 3,110 43 111,775 107,079 115,43 lr 116,48 r 118,251 114,986 113,912 113,702 120,092 120,858 China 44 Mainland 2,271 836 1,023 2,857 2,141 1,349 2,033 1,700 1,420 1,292 45 Taiwan 2,625 1,448 1,713 1,524r 1,500 1,312 1,023 1,700 1,305 1,413 46 Hong Kong 10,828 9,161 12,82 lr 14,693r 15,997 13,412 12,464 13,882 12,975 13,550 47 India 589 994 1,846 1,786 1,794 1,785 2,118 1,975 2,190 2,027 48 Indonesia 1,527 1,470 1,696 1,563 1,562 1,744 1,572 1,653 1,577 1,634 49 Israel 826 688 739 615 620 659 667 576 1,017 624 50 Japan 60,032 59,151 61,468r 54,412r 53,831 53,441 54,583 52,326 59,343 59,886 51 Korea (South) 7,539 10,286 14,070r 18,419r 19,246 18,624 17,644 17,608 17,032 18,080 52 Philippines 1,410 662 1,318r 830r 1,289 1,265 1,205 1,255 1,335 1,519 53 Thailand 2,170 2,902 2,612 3,015 3,194 2,824 2,864 2,705 2,699 2,820 54 Middle Eastern oil-exporting countries4 15,115 13,748 9,639 8,976 8,348 9,478 9,489 10,111 11,372 10,311 55 Other 6,843 5,733 6,486 7,79 lr 8,729 9,093 8,250 8,211 7,827 7,702 56 Africa 3,861 3,050 2,742r 2,690r 2,741 2,605 2,735 2,757 2,638 2,557 57 Egypt 196 225 210 217 198 216 221 241 204 212 58 Morocco 481 429 514 628 639 602 577 565 543 587 59 South Africa 633 671 465 468 515 441 512 572 614 551 60 Zaire 4 2 1 1 1 1 11 1 1 0 61 Oil-exporting countries5 1,129 856 552 478 474 470 462 429 414 427 62 Other 1,418 867 1,000' 898r 914 875 952 949 862 780 63 Other 2,860 3,129 2,467 3,512r 3,645 3,839 3,049 5,306 5,346 6,037 64 Australia 2,037 2,186 1,622 2,333 2,363 3,020 2,439 3,641 3,798 4,336 65 Other 823 943 845 1,179r 1,282 819 610 1,665 1,548 1,701 66 Nonmonetary international and regional organizations6 . . . 2,405 4,591 1,931 3,494 3,029 2,114 2,032 1,698 3,078 1,473 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 • March 1997 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1996 TTyyppee ooff ccllaaiimm 11999933 11999944 11999955rr Mayr Juner Julyr Aug.r Sept.r Oct. Nov.p 1 Total 575,818 599,499r 655,306 660,084 688,310 2 Banks' claims 488,497 483,220r 532,539 519,755 536,045 544,126 546,607 544,717 563,438 575,084 3 Foreign public borrowers 29,228 23,416 22,518 22,211 22,946 20,234 18,875 22,719 24,929 20,106 4 Own foreign offices2 285,510 283,015r 307,427 301,744 307,510 297,799 299,828 311,588 330,377 335,191 5 Unaffiliated foreign banks 100,865 109,346r 101,595 98,578 105,546 108,921 111,881 109,616 108,758 108,490 6 Deposits 49,892 59,368r 37,658 35,590 33,998 36,145 39,338 35,286 36,106 32,896 7 Other 50,973 49,978 63,937 62,988 71,548 72,776 72,543 74,330 72,652 75,594 8 All other foreigners 72,894 67,443 100,999 97,222 100,043 117,172 116,023 100,794 99,374 111,297 9 Claims of banks' domestic customers3 87,321 116,279 122,767 124,039 143,593 10 Deposits 41,734 64,829 58,519 70,403 80,695 11 Negotiable and readily transferable instruments4 31,186 36,008 44,161 37,331 46,491 12 Outstanding collections and other claims 14,401 15,442 20,087 16,305 16,407 MEMO 13 Customer liability on acceptances 7,920 8,427 8,410 9,335 9,396 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 29,150 32,796 30,717 34,258 31,136 32,270 33,527 34,125 40,326 41,560 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are principally of amounts due from the head office or parent foreign bank, and from foreign for quarter ending with month indicated. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Reporting banks include all types of depository institution as well as some brokers and 3. Assets held by reporting banks in the accounts of their domestic customers. dealers. 4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiar- paper. ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 5. Includes demand and time deposits and negotiable and nonnegotiable certificates of agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists deposit denominated in U.S. dollars issued by banks abroad. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1995 1996r MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999922 11999933 11999944 Dec.r Mar. June Sept. 1 Total 195,119 202,566 200,070 225,027 233,482 228,571 231,340 By borrower 2 Maturity of one year or less 163,325 172,662 168,359 178,857 193,870 185,881 187,302 3 Foreign public borrowers 17,813 17,828 15,435 14,995 19,544 14,847 15,523 4 All other foreigners 145,512 154,834 152,924 163,862 174,326 171,034 171,779 5 Maturity of more than one year 31,794 29,904 31,711 46,170 39,612 42,690 44,038 6 Foreign public borrowers 13,266 10,874 7,838 7,522 8,131 8,126 6,922 7 All other foreigners 18,528 19,030 23,873 38,648 31,481 34,564 37,116 By area Maturity of one year or less 8 Europe 53,300 57,413 55,770 55,622 57,979 57,138 57,075 9 Canada 6,091 7,727 6,690 6,751 5,470 6,806 8,811 10 Latin America and Caribbean 50,376 60,490 58,877 72,504 84,385 78,622 79,622 11 45,709 41,418 39,851 40,296 40,312 38,078 37,199 1? Africa 1,784 1,820 1,376 1,295 1,326 1,279 1,320 13 All other3 6,065 3,794 5,795 2,389 4,398 3,958 3,275 Maturity of more than one year 14 Europe 5,367 5,310 4,203 4,995 6,835 8,193 7,134 15 Canada 3,287 2,581 3,505 2,751 2,563 3,689 3,533 16 Latin America and Caribbean 15,312 14,025 15,717 27,681 19,368 19,511 21,333 17 5,038 5,606 5,318 8,036 8,466 9,291 9,928 18 Africa 2,380 1,935 1,583 1,421 1,449 1,410 1,349 19 All other3 410 447 1,385 1,286 931 596 761 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 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. 344.7 407.7 486.4 497.3r 543.1 528.8 531.21" 551.9 573.0r 607.7r 609.8r 2 G-10 countries and Switzerland . 131.3 161.8 182.6 190.6 211.5 204.4 200.0 206.0 202.2r 222.1r 234.9r Belgium and Luxembourg. .0 7.4 9.6 7.0 10.2 9.4 10.7 13.6 11.0 7.9 11.8 France 15.3 12.0 20.7 19.1 19.9 19.9 18.0 19.4 17.9 18.0 17.6 Germany 9.1 12.6 24.0 24.7 31.2 30.0 27.5 27.3 31.5 31.4 36.0 Italy 6.5 7.7 11.6 11.8 10.6 10.7 12.6 11.5 13.2 14.9 16.4 Netherlands .0 4.7 3.4 3.6 3.5 4.3 4.4 3.7 3.0 4.7 6.3 Sweden 2.3 2.7 2.6 2.7 3.1 3.1 2.9 2.7 3.3 2.7 3.0 Switzerland 4.8 5.9 5.5 5.1 5.7 6.2 6.6 6.7 5.2 6.3 6.3 United Kingdom 59.7 84.3 78.4 85.7r 90.1 87.1 80.3 82.4 84.7r 101,5r 101.lr Canada 6.3 6.9 10.2 10.0 10.8 11.3 13.0 10.3 9.7 11.1 13.7 Japan 18.8 17.6 16.5 20.7 26.2 22.7 24.0 28.5 22.7r 23.6r 22.8 13 Other industrialized countries 24.0 25.6 42.6 45.2 44.1 43.3 50.2 50.2 61.3 55.5 63.5r 14 Austria 1.2 .4 1.0 1.1 .9 .7 1.2 .9 1.3 1.2 1.0 15 Denmark .9 1.0 1.0 1.3 1.7 1.1 1.8 2.6 3.4 3.3 1.8 16 Finland .7 .4 .8 .9 1.1 .5 .7 .8 .7 .6 .6 17 Greece 3.0 3.2 4.3 4.5 4.9 5.0 5.1 5.7 5.6 5.6 6.1 18 Norway 1.2 1.7 1.6 2.0 2.4 1.8 2.3 3.2 2.1 2.3 3.0 19 Portugal .4 .8 1.0 1.2 1.0 1.2 1.9 1.3 1.6 1.6 1.4 20 Spain 8.9 9.9 14.0 13.6 14.1 13.3 13.3 11.6 17.5 13.6 17.3 21 Turkey 1.3 2.1 1.8 1.6 1.4 1.4 2.0 1.9 2.0 2.3r 2.8 22 Other Western Europe.... 1.7 2.6 1.0 2.7 2.5 2.6 3.0 4.7 3.8 3.4 4.8 23 South Africa 1.7 1.1 1.2 1.0 1.5 1.4 1.3 1.2 1.7 2.0 1.9 24 Australia 2.9 2.3 15.0 15.4 12.6 14.3 17.4 16.4 21.7 19.6r 22.8r 25 OPEC2 15.8 17.4 21.7 23.9 19.5 20.3 22.4 22.1 21.2 20.1 19.4 26 Ecuador .6 .5 .4 .5 .5 .7 .7 .7 .8 .9 1.0 27 Venezuela 5.2 5.1 3.9 3.7 3.5 3.5 3.0 2.7 2.9 2.3 2.3 28 Indonesia 2.7 3.3 3.3 3.8 4.0 4.1 4.4 4.8 4.7 4.9 5.5 29 Middle East countries . 6.2 7.4 13.0 15.0 10.7 11.4 13.6 13.3 12.3 11.5 10.1 30 African countries 1.1 1.2 1.1 .9 .7 .6 .6 .6 .6 .5 .4 31 Non-OPEC developing countries 72.6 83.1 93.2 96.0 98.5 103.6 104.0 112.6 118.1 126.1 125.7r Latin America Argentina .... 6.6 7.7 10.5 11.2 11.4 12.3 10.9 12.9 12.7 14.1 16.2 Brazil 10.8 12.0 9.3 8.4 9.2 10.0 13.6 13.7 18.3 21.7 18.1 Chile 4.4 4.7 5.5 6.1 6.4 7.1 6.4 6.8 6.4 6.7 6.7 Colombia .... 1.8 2.1 2.4 2.6 2.6 2.6 2.9 2.9 2.9 2.8 3.1 Mexico 16.0 17.8 19.8 18.4 17.9 17.6 16.3 17.3 16.1 15.4 16.4 Peru .5 .4 .6 .5 .6 .8 .7 .8 .9 1.2 1.4 Other 2.6 3.1 2.8 2.7 2.4 2.6 2.6 2.8 3.1 3.0r 3.0r Asia China Mainland .. .7 2.0 1.0 1.1 1.1 1.4 1.7 1.8 3.3 2.9 2.6 Taiwan .... 5.2 7.3 6.9 9.2 8.5 9.0 9.0 9.4 9.7 9.8 10.3 India 3.2 3.2 3.9 4.2 3.8 4.0 4.4 4.4 4.7 4.2 3.8 Israel .4 .5 .4 .4 .6 .7 .5 .5 .5 .6 .5 Korea (South) 6.6 6.7 14.4 16.2 16.9 18.7 18.0 19.1 19.3r 21.7r 21.9r Malaysia 3.1 4.4 3.9 3.1 3.9 4.1 4.3 4.4 4.7 5.0 5.1 Philippines ... 3.6 3.1 2.9 3.3 3.0 3.6 3.3 4.1 3.9 4.7 5.4 Thailand 2.2 3.1 3.5 2.1 3.3 3.8 3.9 4.9 5.2 5.4 4.7 Other Asia . .. 3.1 3.1 3.4 4.7 4.9 3.5 3.7 4.5 4.3 4.8r 4.1 Africa Egypt .2 .4 .3 .3 .4 .4 .4 .4 .5 .5 .6 Morocco .6 .7 .7 .6 .6 .9 .9 .7 .7 .8 .7 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 Other Africa3. 1.0 .8 .9 .8 .7 .6 .8 .9 .8 .8 1.0 52 Eastern Europe. 3.1 3.2 3.0 2.7 2.3 1.8 3.4 4.2 6.2 5.0 5.4 53 Russia4 1.9 1.6 1.1 .8 .7 .4 .6 1.0 1.4 1.0 1.8 54 Yugoslavia5 . .6 .6 .5 .5 .4 .3 .4 .3 .3 .3 .3 55 Other .6 .9 1.5 1.4 1.2 1.0 2.3 2.8 4.5 3.7 3.3 56 Offshore banking centers 58.1 73.0 77.2 72.2 84.8 82.8r 86.9 99.2 101.2r 106.2r 106.1 57 Bahamas 6.9 10.9 13.8 10.2 12.5 8.4 12.6 11.0 13.9 17.3 14.8 58 Bermuda 6.2 8.9 6.0 8.4 8.7 8.4 6.1 6.3 5.3 4.1 4.0 Cayman Islands and other British West Indies 21.5 18.0 21.5 20.8 19.8 24.3r 24.4r 32.4r 28.8r 26.lr 32.1 Netherlands Antilles 1.1 2.6 1.7 1.3 .9 2.4 5.5 9.9 10.7 13.0 11.5 Panama6 1.9 2.4 1.9 1.3 1.1 1.3 1.3 1.4 1.6 1.7 1.7 Lebanon Hong Kong 13^9 187 203 19^9 22^5 23 J 23^6r 25!or 253r 27^8 26.4 Singapore 6.5 11.2 11.8 10.1 19.2 14.8 13.3 13.1 15.4 15.9 15.4 Other' .0 .1 .0 .1 .0 .0 .1 .1 .1 .1 .1 66 Miscellaneous and unallocated8 39.7 43.4 65.8 66.7 82.2 72.3 64.0 57.3 62.2 72.3 54.3 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 • March 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 June Sept. Dec. Mar. June Sept." 1 Total 45,511 50,597 54,309 49,973 47,673 46,448 49,907 48,990 51,105 2 Payable in dollars 37,456 38,728 38,298 34,281 33,908 33,903 36,273 35,385 36,402 3 Payable in foreign currencies 8,055 11,869 16,011 15,692 13,765 12,545 13,634 13,605 14,703 By type 4 Financial liabilities 23,841 29,226 32,954 29,282 26,237 24,241 26,570 24,844 25,107 5 Payable in dollars 16,960 18,545 18,818 15,028 13,872 12,903 13,831 12,212 11,256 6 Payable in foreign currencies 6,881 10,681 14,136 14,254 12,365 11,338 12,739 12,632 13,851 7 Commercial liabilities 21,670 21,371 21,355 20,691 21,436 22,207 23,337 24,146 25,998 8 Trade payables 9,566 8,802 10,005 10,527 10,061 11,013 10,815 11,081 11,605 9 Advance receipts and other liabilities 12,104 12,569 11,350 10,164 11,375 11,194 12,522 13,065 14,393 10 Payable in dollars 20,496 20,183 19,480 19,253 20,036 21,000 22,442 23,173 25,146 11 Payable in foreign currencies 1,174 1,188 1,875 1,438 1,400 1,207 895 973 852 By area or country Financial liabilities 12 Europe 13,387 18,810 21,703 18,223 16,401 15,622 16,950 16,434 16,054 13 Belgium and Luxembourg 414 175 495 778 347 369 483 498 547 14 France 1,623 2,539 1,727 1,101 1,365 999 1,679 1,011 1,220 lb Germany 889 975 1,961 1,589 1,670 1,974 2,161 1,850 2,276 16 Netherlands 606 534 552 530 474 466 479 444 519 17 Switzerland 569 634 688 1,056 948 895 1,260 1,156 830 18 United Kingdom 8,610 13,332 15,543 12,138 10,518 10,138 10,246 10,790 9,821 19 Canada 544 859 629 893 797 632 1,166 951 881 20 Latin America and Caribbean 4,053 3,359 2,034 1,950 1,904 1,783 1,876 969 1,018 21 Bahamas 379 1,148 101 81 79 59 78 31 50 22 Bermuda 114 0 80 138 144 147 126 28 25 23 Brazil 19 18 207 58 111 57 57 8 9 24 British West Indies 2,850 1,533 998 1,030 930 866 946 826 764 25 Mexico 12 17 0 3 3 12 16 11 4 26 Venezuela 6 5 5 4 3 2 2 1 0 27 5,818 5,956 8,403 8,023 6,947 5,988 6,390 6,351 6,927 28 Japan 4,750 4,887 7,314 7,141 6,308 5,436 5,980 6,051 6,602 29 Middle Eastern oil-exporting countries1 19 23 35 25 25 27 26 26 25 30 Africa 6 133 135 151 149 150 131 72 132 31 Oil-exporting countries2 0 123 123 122 122 122 122 61 121 32 All other3 33 109 50 42 39 66 57 67 95 Commercial liabilities 33 Europe 7,398 6,827 6,773 6,776 7,263 7,700 8,425 7,916 8,654 34 Belgium and Luxembourg 298 239 241 311 349 331 370 326 427 35 France 700 655 728 504 528 481 648 678 657 36 Germany 729 684 604 556 660 767 867 839 959 37 Netherlands 535 688 722 448 566 500 659 617 668 38 Switzerland 350 375 327 432 255 413 428 516 409 39 United Kingdom 2,505 2,039 2,444 2,902 3,351 3,568 3,525 3,266 3,664 40 Canada 1,002 879 1,037 1,146 1,219 1,040 959 998 1,094 41 Latin America and Caribbean 1,533 1,658 1,857 1,836 11,,660077 11,,774400 2,110 2,301 2,306 42 Bahamas 3 21 19 3 11 11 28 35 33 43 Bermuda 307 350 345 397 219 205 570 509 355 44 Brazil 209 214 161 107 143 98 128 119 159 45 British West Indies 33 27 23 12 5 56 10 10 15 46 Mexico 457 481 574 420 357 416 468 475 441 47 Venezuela 142 123 276 204 175 221 243 283 332 48 10,594 10,980 10,741 9,978 10,275 10,421 10,474 11,389 12,229 49 Japan 3,612 4,314 4,555 3,531 3,475 3,315 3,725 3,943 4,150 50 Middle Eastern oil-exporting countries1 1,889 1,534 1,576 1,790 1,647 1,912 1,747 1,784 1,951 51 Africa 568 453 428 481 589 619 708 924 1,013 52 Oil-exporting countries2 309 167 256 252 241 254 254 435 404 53 Other3 575 574 519 474 483 687 661 618 702 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 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999922 11999933 11999944 June Sept. Dec. Mar. June Sept.p 1 Total 45,073 49,159 57,888 58,051 53,424 52,509 55,406 58,845 57,230 2 Payable in dollars 42,281 45,161 53,805 54,138 49,696 48,711 51,007 54,000 52,555 3 Payable in foreign currencies 2,792 3,998 4,083 3,913 3,728 3,798 4,399 4,845 4,675 By type 4 Financial claims 26,509 27,771 33,897 34,574 29,891 27,398 30,772 33,994 32,857 5 Deposits 17,695 15,717 18,507 22,046 17,974 15,133 17,595 18,364 18,625 6 Payable in dollars 16,872 15,182 18,026 21,351 17,393 14,654 17,044 17,926 18,001 7 Payable in foreign currencies 823 535 481 695 581 479 551 438 624 8 Other financial claims 8,814 12,054 15,390 12,528 11,917 12,265 13,177 15,630 14,232 9 Payable in dollars 7,890 10,862 14,306 11,370 10,689 10,976 11,290 13,233 12,143 10 Payable in foreign currencies 924 1,192 1,084 1,158 1,228 1,289 1,887 2,397 2,089 11 Commercial claims 18,564 21,388 23,991 23,477 23,533 25,111 24,634 24,851 24,373 12 Trade receivables 16,007 18,425 21,158 21,326 21,409 22,998 22,123 22,276 22,010 13 Advance payments and other claims 2,557 2,963 2,833 2,151 2,124 2,113 2,511 2,575 2,363 14 Payable in dollars 17,519 19,117 21,473 21,417 21,614 23,081 22,673 22,841 22,411 15 Payable in foreign currencies 1,045 2,271 2,518 2,060 1,919 2,030 1,961 2,010 1,962 By area or country Financial claims 16 Europe 9,331 7,299 7,936 7,927 7,840 7,609 8,929 9,241 8,500 17 Belgium and Luxembourg 8 134 86 155 160 193 159 151 126 18 France 764 826 800 730 753 803 1,015 679 733 19 Germany 326 526 540 356 301 436 320 296 272 20 Netherlands 515 502 429 601 522 517 486 488 520 21 Switzerland 490 530 523 514 530 498 470 461 431 22 United Kingdom 6,252 3,585 4,649 4,790 4,924 4,303 5,568 6,169 5,333 23 Canada 1,833 2,032 3,581 3,705 3,526 2,851 5,269 4,773 4,502 24 Latin America and Caribbean 13,893 16,224 19,536 21,159 15,345 14,500 13,827 17,644 17,184 25 Bahamas 778 1,336 2,424 2,355 1,552 1,965 1,538 2,168 1,746 26 Bermuda 40 125 27 85 35 81 77 84 113 27 Brazil 686 654 520 502 851 830 1,019 1,242 1,417 28 British West Indies 11,747 12,699 15,228 17,013 11,816 10,393 10,100 13,024 12,809 29 Mexico 445 872 723 635 487 554 461 392 411 30 Venezuela 29 161 35 27 50 32 40 23 17 31 864 1,657 1,871 1,235 2,160 1,579 1,890 1,571 1,826 32 Japan 668 892 953 471 1,404 871 1,171 852 1,001 33 Middle Eastern oil-exporting countries1 3 3 141 3 4 3 13 9 13 34 Africa 83 99 373 138 188 276 277 197 176 35 Oil-exporting countries2 9 1 0 9 6 5 5 5 13 36 All other3 505 460 600 410 832 583 580 568 669 Commercial claims 37 Europe 8,451 9,105 9,540 9,200 8,862 9,824 9,776 9,812 9,162 38 Belgium and Luxembourg 189 184 213 218 224 231 247 239 213 39 France 1,537 1,947 1,881 1,669 1,706 1,830 1,803 1,658 1,525 40 Germany 933 1,018 1,027 1,023 997 1,070 1,410 1,335 1,239 41 Netherlands 552 423 311 341 338 452 442 481 420 42 Switzerland 362 432 557 612 438 520 579 602 588 43 United Kingdom 2,094 2,377 2,556 2,469 2,479 2,656 2,607 2,651 2,514 44 Canada 1,286 1,781 1,988 2,003 1,971 1,951 2,045 2,074 2,032 45 Latin America and Caribbean 3,043 3,274 4,117 4,370 4,359 4,364 4,151 4,340 4,156 46 Bahamas 28 11 9 21 26 30 30 28 14 47 Bermuda 255 182 234 210 245 272 273 264 290 48 Brazil 357 460 612 777 745 898 809 837 857 49 British West Indies 40 71 83 83 66 79 106 103 119 50 Mexico 924 990 1,243 1,109 1,026 993 870 1,021 901 51 Venezuela 345 293 348 319 325 285 308 313 302 52 4,866 6,014 6,982 6,516 6,826 7,312 7,100 6,883 7,216 53 Japan 1,903 2,275 2,655 2,011 1,998 1,870 2,010 1,877 1,918 54 Middle Eastern oil-exporting countries 693 704 708 707 775 974 1,024 879 930 55 Africa 554 493 454 478 544 654 667 688 716 56 Oil-exporting countries2 78 72 67 60 74 87 107 83 142 57 Other3 364 721 910 910 971 1,006 895 1,054 1,091 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 • March 1997 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1996 1996 Transaction, and area or country 1994 1995 J N a o n v .- . May June1 Julyr Aug.r Sept.1" Oct. Nov.p U.S. corporate securities STOCKS 1 Foreign purchases 350,593 462,950 568,542 57.552 43,374 49,557 46,136 42,599 57,758 67,404 2 Foreign sales 348,716 451,710 555,735 56,068 42,361 52,211 44,071 42,550 56,751 65,468 3 Net purchases, or sales (—) 1,877 11,240 12,807 1,484 1,013 -2,654 2,065 49 1,007 1,936 4 Foreign countries 1,867 11,445 12,852 1,479 1,013 -2,653 2,051 75 1,013 1,939 5 Europe 6,714 4,912 6,558 -446 -308 -386 3,310 200 447 53 6 France -201 -1,099 -1,279 -306 -339 -188 -209 -109 -219 -237 / Germany 2,110 -1.837 1,119 -30 218 363 83 -85 116 -8 8 Netherlands 2,251 3,507 1,525 -66 129 124 219 -13 -132 139 9 Switzerland -30 -2.283 3,176 -140 78 615 538 -123 144 682 10 United Kingdom 840 8,066 2,438 229 -416 -1,490 2.551 475 909 464 li Canada -1,160 -1,517 2,262 -394 81 31 -250 191 742 736 1 1 3 2 M La i t d in d le A m Ea e s r t i 1 c a and Caribbean - - 1 2 , ,1 1 1 4 1 2 - 5 3 ,8 3 1 7 4 -1 4 , , 5 5 9 6 5 4 - 1 2 ,2 6 9 1 8 -11 4 4 2 -1, - 0 1 7 5 7 - 1 1 ,0 7 4 9 6 -1 2 5 5 3 2 -65 1 3 5 - 9 5 5 7 9 14 Other Asia -1,234 2,503 1.130 1,380 1,359 -1,347 -1,642 -575 511 259 15 Japan 1,162 -2,725 25 73 802 -611 -791 104 313 -525 16 Africa 29 2 -91 6 -4 33 -33 -6 5 -23 1/ Other countries 771 68 24 -104 -43 108 -201 166 -54 12 18 Nonmonetary international and regional organizations 10 -205 -45 5 0 -1 14 -26 -6 -3 BONDS2 19 Foreign purchases 289,586 293,533 381,091 34,940R 35,152 27,962 32,333 37.407 40,610 49.186 20 Foreign sales 229,665 206,951 262,090 24,094 25,688 17,458 20,901 23,858 30,277 34,624 21 Net purchases, or sales (—) 59,921 86,582 119,001 10,846r 9,464 10,504 11,432 13,549 10,333 14,562 22 Foreign countries 59,036 87,036 118,830 10,841r 9,449 10,387 11,453 13,551 10,348 14,572 23 Europe 37,065 70,318 72,097 7,265R 5,020 6,502 6,184 8,350 6,221 77,,551133 24 France 242 1.143 4.948 113 337 345 169 565 713 9988 25 Germany 657 5,938 5,163 891 40 255 626 381 -260 209 26 Netherlands 3,322 1,463 2,292 371 53 442 146 244 93 533 27 Switzerland 1,055 494 912 178 233 258 125 403 59 -132 28 United Kingdom 31,642 57,591 52,009 4,368R 3,800 4,790 4,305 6,231 5,258 6,160 29 Canada 2,958 2,569 3,839 952 314 514 474 122 181 435 3 3 1 0 M La i t d in d le A m Ea e s r t i 1 c a and Caribbean 5, 7 4 7 4 1 2 6 1 , , 1 8 4 6 1 9 20 1 , , 0 2 0 2 2 5 1, 2 1 0 6 5 6 2 7 1 7 8 0 1, 2 8 0 1 5 1 1, 2 2 0 7 1 2 1,1 6 4 5 4 2, 2 9 1 5 1 4 2, 5 2 1 4 3 2 32 Other Asia 12,153 5,659 21,464 1,279 3,140 1,186 3,243 3,681 787 3,727 33 Japan 5,486 2,250 12,299 537 1,912 905 2,583 1,963 1,037 2,245 34 Africa -7 234 521 107 50 31 17 109 45 132 35 Other countries 654 246 -318 -133 -63 138 62 80 -51 10 36 Nonmonetary international and regional organizations 885 -454 171 5 15 117 -21 -2 -15 -10 Foreign securities 37 Stocks, net purchases, or sales (—) -48,071 -50,291 -52,320 -3,167 -7,527 -5,139 -1,197 -1,733 -2,322 -2,046 38 Foreign purchases 386,106 345,540 416,377 43,515 36,728 37,643 34,016 31,195 40,104 48,352 39 Foreign sales 434,177 395,831 468,697 46,682 44,255 42,782 35,213 32,928 42,426 50,398 40 Bonds, net purchases, or sales (—) -9,224 —48,405R -34,434 -599R -2,035 -3,418 -5.189 -4,430 -5,771 -877 41 Foreign purchases 848,368 889,541R 1,019,418 82,417R 82,833 80,692 84,461 113,087 116,354 105,102 42 Foreign sales 857,592 937,946R 1,053,852 83,016R 84,868 84,110 89,650 117,517 122,125 105,979 43 Net purchases, or sales (—), of stocks and bonds .... -57,295 —98,696r -86,754 —3,766r -9,562 -8,557 -6386 -6,163 -8,093 -2,923 44 Foreign countries -57,815 —97,891r -85,894 —3,657r -9,509 -8,620 -6,244 -5,637 -8,115 -2,955 45 Europe -3,516 -48,125 -45,597 L,185R -8,506 -5,960 -5,298 -5,505 -6,086 -2,350 46 Canada -7,475 —7,812r -3,521 -217R -470 807 882 222 -574 -258 47 Latin America and Caribbean -18,334 -7,634 -5,767 -2,044 975 -2,181 -1,470 -1,277 937 4,099 48 -24,275 -34,056 -26,861 -2,260 -1,401 -1,174 -1,016 971 -819 -4,070 49 Japan -17,427 -25,072 -8,097 -921 -1,229 231 486 2,456 656 -583 50 Africa -467 -327 -1,565 -32 -116 -53 -25 -49 -468 -115 51 Other countries -3,748 63 -2,583 -289 9 -59 683 1 -1,105 -261 52 Nonmonetary international and regional organizations 520 -805 -860 -109 -53 63 -142 -526 22 32 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 Transactions' Millions of dollars; net purchases, or sales (—) during period 1996 1996 AArreeaa oorr ccoouunnttrryy 11999944 11999955 J N a o n v .- . May June' Julyr Aug.r Sept.' Oct. Nov.P 1 Total estimated 78,801 134,115r 197,255 14,124r 8,520 47,960 12,340 14,738 24,321 21,475 2 Foreign countries 78,637 133,676R 200,240 13,886R 9,331 48,396 12,304 14,895 23,784 22,667 3 Europe 38,542 49,976R 103,390 7,265R 5,674 18,471 7,103 13,104 12,992 9,135 4 Belgium and Luxembourg 1,098 591 1,111 -153 221 -39 73 489 -320 330 5 Germany 5,709 6,136 16,573 1,674 1,196 1,233 467 -264 2,813 3,449 6 Netherlands 1,254 1,891 -1,384 -757 1,067 694 -237 116 -423 729 7 794 358 2,324 342 -29 322 -282 431 169 -45 8 Switzerland 481 -472 997 555 -842 395 -730 718 -599 -54 9 United Kingdom 23,365 34,754R 57,820 2,961R 5,130 11,245 7,623 7,977 10,121 505 10 Other Europe and former U.S.S.R 5,841 6,718 25,949 2,643R -1,069 4,621 189 3,637 1,231 4,221 11 Canada 3,491 252 3,521 -593R -139 1,734 -988 -215 -1,744 329 1? Latin America and Caribbean -10,383 48,609 10,283 -1,167 1,524 23,991 -491 -19,359 1,479 12,877 13 Venezuela -319 -2 -281 -39 13 16 146 -45 -29 -68 14 Other Latin America and Caribbean -20,493 25,152 7,912 -2,195 -4,434 986 3,088 -1,547 926 2,893 15 Netherlands Antilles 10,429 23,459 2,652 1,067 5,945 22,989 -3,725 -17,767 582 10,052 16 47,317 32,467R 81,218 8,393R 2,851 3,964 6,327 20,713 9,889 1,298 17 Japan 29,793 16,979R 33,915 4,480R 805 2,384 2,924 4,875 6,629 1,337 18 240 1,464 1,087 -48 22 -31 163 30 -13 -12 19 Other -570 908 741 36 -601 267 190 622 1,181 -960 20 Nonmonetary international and regional organizations 164 439R -2,985 238 -811 -436 36 -157 537 -1,192 21 International 526 9R -2,163 -9 -747 -395 -287 -52 338 -1,146 22 Latin American regional -154 261 -1,031 9 7 -3 347 -90 -4 -2 MEMO 73 Foreign countries 78,637 133,676R 200,240 13,886R 9,331 48,396 12,304 14,895 23,784 22,667 74 Official institutions 41,822 39,63 lr 73,213 6,482 -6,648 9,629 3,587 17,188 4,838 3,840 25 Other foreign 36,815 94,045R 127,027 7,404R 15,979 38,767 8,717 -2,293 18,946 18,827 Oil-exporting countries 26 Middle East2 -38 3,075 7,953 2,172 793 -219 323 4,969 --11,,887766 337 27 0 2 1 1 -1 0 -1 1 0 0 1. Official and private transactions in marketable U.S. Treasury securities having an 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab original maturity of more than one year. Data are based on monthly transactions reports. Emirates (Trucial States). Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 3. Comprises Algeria, Gabon, Libya, and Nigeria. countries. 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS1 Percent per year, averages of daily figures Rate on Feb. 28, 1997 Rate on Feb. 28, 1997 Country Country Month effective Austria. . 2.5 Apr. 1996 Germany .. . 2.5 Belgium. 2.5 Apr. 1995 Italy 6.75 Canada. . 3.25 Nov. 1996 Japan .5 Denmark 3.25 Apr. 1996 Netherlands . 2.5 France2 . 3.15 Nov. 1996 Switzerland . 1.0 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 RATES1 Percent per year, averages of daily figures 1996 1997 TTyyppee oorr ccoouunnttrryy 11999944 11999955 11999966 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Eurodollars 4.63 5.93 5.38 5.49 5.41 5.49 5.41 5.38 5.43 5.44 2 United Kingdom 5.45 6.63 5.99 5.69 5.72 5.75 5.93 6.27 6.31 6.28 3 Canada 5.57 7.14 4.49 4.76 4.30 4.10 3.54 3.05 3.16 3.18 4 Germany 5.25 4.43 3.21 3.29 3.20 3.02 3.04 3.09 3.13 3.03 5 Switzerland 4.03 2.94 1.92 2.52 2.21 1.82 1.56 1.80 1.99 1.72 6 Netherlands 5.09 4.30 2.91 2.99 2.90 2.70 2.82 2.92 2.99 2.94 7 France 5.72 6.43 3.81 3.73 3.84 3.63 3.39 3.35 3.33 3.23 8 Italy 8.45 10.43 8.79 8.72 8.77 8.42 7.99 7.40 7.22 7.21 9 Belgium 5.65 4.73 3.19 3.29 3.21 3.04 3.02 3.03 3.01 3.00 10 Japan 2.24 1.20 .58 .67 .62 .53 .52 .51 .51 .53 1. Rates are for three-month interbank loans, with the following exceptions: Canada, finance company paper; Belgium, three-month Treasury bills: and Japan, CD rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • March 1997 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1996 1997 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999944 11999955 11999966 Aug. Sept. Oct. Nov. Dec. Jan. 1 Australia/dollar2 73.161 74.073 78.283 78.305 79.279 79.179 79.684 79.661 77.756 2 Austria/schilling 11.409 10.076 10.589 10.435 10.610 10.748 10.640 10.923 11.289 3 Belgium/franc 33.426 29.472 30.966r 30.553 31.056 31.471 31.153r 31.944 33.087 4 Canada/dollar 1.3664 1.3725 1.3638 1.3722 1.3694 1.3508 1.3381 1.3622 1.3494 5 China, P.R./yuan 8.6404 8.3700 8.3395 8.3379 8.3341 8.3299 8.3294 8.3290 8.3260 6 Denmark/krone 6.3561 5.5999 5.8009 5.7327 5.8057 5.8576 5.8053 5.9428 6.1199 7 Finland/markka 5.2340 4.3763 4.5948 4.4793 4.5421 4.5694 4.5512 4.6388 4.7766 8 France/franc 5.5459 4.9864 5.1158 5.0636 5.1307 5.1652 5.1156 5.2427 5.4145 9 Germany/deutsche mark 1.6216 1.4321 1.5049 1.4826 1.5080 1.5277 1.5118 1.5525r 1.6047 10 Greece/drachma 242.50 231.68 240.82 237.00 239.67 239.76 238.38 245.70 251.54 11 Hong Kong/dollar 7.7290 7.7357 7.7345 7.7345 7.7328 7.7322 7.7323 7.7355 7.7397 12 India/rupee 31.394 32.418 35.510 35.800 35.870 35.804 35.892 35.882 35.904 13 Ireland/pound2 149.69 160.35 159.95 161.08 160.96 160.83 166.45 165.93 163.11 14 ItalyAira 1,611.49 1,629.45 1,542.76 1,516.62 1,520.48 1,523.82 1,513.66 1,528.44 1,567.91 15 Japan/yen 102.18 93.96 108.78 107.87 109.93 112.41 112.30 113.98 117.91 16 Malaysia/ringgit 2.6237 2.5073 2.5154 2.4933 2.5009 2.5074 2.5234 2.5251 2.4900 17 Netherlands/guilder 1.8190 1.6044 1.6863 1.6633 1.6905 1.7141 1.6958 1.7420 1.8023 18 New Zealand/dollar2 59.358 65.625 68.765 68.860 69.640 70.071 70.975 70.501 70.088 19 Norway/krone 7.0553 6.3355 6.4594 6.4153 6.4613 6.4810 6.3554 6.4716 6.4589 20 Portugal/escudo 165.93 149.88 154.28 152.27 153.99 154.28 152.83 156.54 160.53 21 Singapore/dollar 1.5275 1.4171 1.4100 1.4124 1.4086 1.4124 1.4025 1.3999 1.4061 22 South Africa/rand 3.5526 3.6284 4.3042 4.5289 4.5489 4.5799 4.6577 4.6873 4.6402 23 South Korea/won 806.93 772.69 805.00 817.52 822.40 828.24 830.56 841.92 854.07 24 Spain/peseta 133.88 124.64 126.68 125.72 127.11 128.60 127.28 130.69 134.79 25 Sri Lanka/rupee 49.170 51.047 55.289 55.603 56.050 57.016 56.987 56.730 57.278 26 Sweden/krona 7.7161 7.1406 6.7082 6.6211 6.6427 6.6006 6.6269 6.8283 7.0692 27 Switzerland/franc 1.3667 1.1812 1.2361 1.2029 1.2343 1.2586 1.2752 1.3290 1.3913 28 Taiwan/dollar 26.465 26.495 27.468 27.496 27.500 27.532 27.522 27.516 27.477 29 Thailand/baht 25.161 24.921 25.359 25.289 25.407 25.474 25.459 25.600 25.726 30 United Kingdom/pound2 153.19 157.85 156.07 154.99 155.93 158.63 166.23 166.39 165.85 MEMO 31 United States/dollar3 91.32 84.25 87.34 86.54 87.46 87.99 86.97r 88.7 lr 91.01 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 September 30, 1996 February 1997 A64 Terms of lending at commercial banks February 1996 May 1996 A68 May 1996 August 1996 A64 August 1996 November 1996 A104 November 1996 February 1997 A68 Assets and liabilities of U.S. branches and agencies of foreign banks December 31, 1995 May 1996 A72 March 31, 1996 September 1996 A64 June 30, 1996 November 1996 A108 September 30, 1996 February 1997 A72 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 A71 Residential lending reported under the Home Mortgage Disclosure Act 1994 September 1995 A68 1995 September 1996 A68 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Index to Statistical Tables References are to pages A3-A62 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) FARM mortgage loans, 35 Assets and liabilities (See also Foreigners) Federal agency obligations, 5, 9, 10, 11, 28, 29 Commercial banks, 16-21 Federal credit agencies, 30 Domestic finance companies, 33 Federal finance Federal Reserve Banks, 10 Debt subject to statutory limitation, and types and ownership Foreign-related institutions, 20 of gross debt, 27 Automobiles Receipts and outlays, 25, 26 Consumer credit, 36 Treasury financing of surplus, or deficit, 25 Production, 44, 45 Treasury operating balance, 25 Federal Financing Bank, 30 BANKERS acceptances, 5, 10, 22, 23 Federal funds, 6, 23, 25 Bankers balances, 16-21. (See also Foreigners) Federal Home Loan Banks, 30 Bonds (See also U.S. government securities) Federal Home Loan Mortgage Corporation, 30, 34, 35 New issues, 31 Federal Housing Administration, 30, 34, 35 Rates, 23 Federal Land Banks, 35 Business activity, nonfinancial, 42 Federal National Mortgage Association, 30, 34, 35 Business loans (See Commercial and industrial loans) Federal Reserve Banks Condition statement, 10 CAPACITY utilization, 43 Discount rates (See Interest rates) Capital accounts U.S. government securities held, 5, 10, 11, 27 Commercial banks, 16-21 Federal Reserve credit, 5, 6, 10, 11 Federal Reserve Banks, 10 Federal Reserve notes, 10 Central banks, discount rates, 61 Federally sponsored credit agencies, 30 Certificates of deposit, 23 Finance companies Commercial and industrial loans Assets and liabilities, 33 Commercial banks, 16-21 Business credit, 33 Weekly reporting banks, 18 Loans, 36 Commercial banks Paper, 22, 23 Assets and liabilities, 16-21 Float, 5 Commercial and industrial loans, 16-21 Flow of funds, 37^1 Consumer loans held, by type and terms, 36 Foreign currency operations, 10 Deposit interest rates of insured, 15 Foreign deposits in U.S. banks, 5 Real estate mortgages held, by holder and property, 35 Foreign exchange rates, 62 Time and savings deposits, 4 Foreign-related institutions, 20 Commercial paper, 22, 23, 33 Foreign trade, 51 Condition statements (See Assets and liabilities) Foreigners Construction, 42, 46 Claims on, 52, 55, 56, 57, 59 Consumer credit, 36 Liabilities to, 51, 52, 53, 58, 60, 61 Consumer prices, 42 Consumption expenditures, 48, 49 GOLD Corporations Certificate account, 10 Profits and their distribution, 32 Stock, 5, 51 Security issues, 31, 61 Government National Mortgage Association, 30, 34, 35 Cost of living (See Consumer prices) Gross domestic product, 48, 49 Credit unions, 36 Currency in circulation, 5, 13 Customer credit, stock market, 24 HOUSING, new and existing units, 46 INCOME, personal and national, 42, 48, 49 DEBT (See specific types of debt or securities) Industrial production, 42, 44 Demand deposits, 16—21 Insurance companies, 27, 35 Depository institutions Interest rates Reserve requirements, 8 Bonds, 23 Reserves and related items, 4, 5, 6, 12 Consumer credit, 36 Deposits (See also specific types) Deposits, 15 Commercial banks, 4, 16—21 Federal Reserve Banks, 7 Federal Reserve Banks, 5, 10 Foreign central banks and foreign countries, 61 Interest rates, 15 Money and capital markets, 23 Discount rates at Reserve Banks and at foreign central banks and Mortgages, 34 foreign countries (See Interest rates) Prime rate, 22 Discounts and advances by Reserve Banks (See Loans) International capital transactions of United States, 50-61 Dividends, corporate, 32 International organizations, 52, 53, 55, 58, 59 Inventories, 48 EMPLOYMENT, 42 Investment companies, issues and assets, 32 Eurodollars, 23, 61 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A65 Investments (See also specific types) Residential mortgage loans, 34, 35 Commercial banks, 4, 16—21 Retail credit and retail sales, 36, 42 Federal Reserve Banks, 10, 11 Financial institutions, 35 SAVING Flow of funds, 37—41 LABOR force, 42 National income accounts, 48 Life insurance companies (See Insurance companies) Savings institutions, 35, 36, 37-41 Loans (See also specific types) Savings deposits (See Time and savings deposits) Commercial banks, 16—21 Securities (See also specific types) Federal Reserve Banks, 5, 6, 7, 10, 11 Federal and federally sponsored credit agencies, 30 Financial institutions, 35 Foreign transactions, 60 Insured or guaranteed by United States, 34, 35 New issues, 31 Prices, 24 Special drawing rights, 5, 10, 50, 51 MANUFACTURING State and local governments Capacity utilization, 43 Holdings of U.S. government securities, 27 Production, 43, 45 New security issues, 31 Margin requirements, 24 Rates on securities, 23 Member banks (See also Depository institutions) Stock market, selected statistics, 24 Federal funds and repurchase agreements, 6 Stocks (See also Securities) Reserve requirements, 8 New issues, 31 Mining production, 45 Prices, 24 Mobile homes shipped, 46 Monetary and credit aggregates, 4, 12 Student Loan Marketing Association, 30 Money and capital market rates, 23 Money stock measures and components, 4, 13 TAX receipts, federal, 26 Mortgages (See Real estate loans) Mutual funds, 13, 32 Thrift institutions, 4. (See also Credit unions and Savings institutions) Mutual savings banks (See Thrift institutions) Time and savings deposits, 4, 13, 15, 16-21 Trade, foreign, 51 NATIONAL defense outlays, 26 Treasury cash, Treasury currency, 5 National income, 48 Treasury deposits, 5, 10, 25 Treasury operating balance, 25 OPEN market transactions, 9 UNEMPLOYMENT, 42 U.S. government balances PERSONAL income, 49 Commercial bank holdings, 16-21 Prices Treasury deposits at Reserve Banks, 5, 10, 25 Consumer and producer, 42, 47 U.S. government securities Stock market, 24 Bank holdings, 16-21, 27 Prime rate, 22 Dealer transactions, positions, and financing, 29 Producer prices, 42, 47 Federal Reserve Bank holdings, 5, 10, 11, 27 Production, 42, 44 Foreign and international holdings and Profits, corporate, 32 transactions, 10, 27, 61 Open market transactions, 9 REAL estate loans Outstanding, by type and holder, 27, 28 Banks, 16-21, 35 Rates, 23 Terms, yields, and activity, 34 U.S. international transactions, 50-62 Type of holder and property mortgaged, 35 Utilities, production, 45 Repurchase agreements, 6 Reserve requirements, 8 VETERANS Administration, 34, 35 Reserves Commercial banks, 16-21 WEEKLY reporting banks, 18 Depository institutions, 4, 5, 6, 12 Wholesale (producer) prices, 42, 47 Federal Reserve Banks, 10 U.S. reserve assets, 51 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD W. KELLEY, JR. ALICE M. RIVLIN, Vice Chair SUSAN M. PHILLIPS OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director THEODORE E. ALLISON, Assistant to the Board for Federal CHARLES J. SIEGMAN, Senior Associate Director Reserve System Affairs DALE W. HENDERSON, Associate Director LYNN S. FOX, Deputy Congressional Liaison DAVID H. HOWARD, Senior Adviser WINTHROP P. HAMBLEY, Special Assistant to the Board DONALD B. ADAMS, Assistant Director BOB STAHLY MOORE, Special Assistant to the Board THOMAS A. CONNORS, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board PETER HOOPER III, Assistant Director PORTIA W. THOMPSON, Equal Employment Opportunity KAREN H. JOHNSON, Assistant Director Programs Adviser CATHERINE L. MANN, Assistant Director RALPH W. SMITH, JR., Assistant Director LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel MICHAEL J. PRELL, Director SCOTT G. ALVAREZ, Associate General Counsel EDWARD C. ETTIN, Deputy Director RICHARD M. ASHTON, Associate General Counsel DAVID J. STOCKTON, Deputy Director OLIVER IRELAND, Associate General Counsel MARTHA BETHEA, Associate Director KATHLEEN M. O'DAY, Associate General Counsel WILLIAM R. JONES, Associate Director ROBERT DEV. FRIERSON, Assistant General Counsel MYRON L. KWAST, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel PATRICK M. PARKINSON, Associate Director THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director OFFICE OF THE SECRETARY MARTHA S. SCANLON, Deputy Associate Director WILLIAM W. WILES, Secretary PETER A. TINSLEY, Deputy Associate Director JENNIFER J. JOHNSON, Deputy Secretary DAVID S. JONES, Assistant Director BARBARA R. LOWREY, Associate Secretary and Ombudsman STEPHEN A. RHOADES, Assistant Director CHARLES S. STRUCKMEYER, Assistant Director DIVISION OF BANKING ALICE PATRICIA WHITE, Assistant Director JOYCE K. ZICKLER, Assistant Director SUPERVISION AND REGULATION GLENN B. CANNER, Senior Adviser RICHARD SPILLENKOTHEN, Director JOHN J. MINGO, Senior Adviser STEPHEN C. SCHEMERING, Deputy Director WILLIAM A. RYBACK, Associate Director DIVISION OF MONETARY AFFAIRS HERBERT A. BIERN, Deputy Associate Director DONALD L. KOHN, Director ROGER T. COLE, Deputy Associate Director DAVID E. LINDSEY, Deputy Director JAMES I. GARNER, Deputy Associate Director BRIAN F. MADIGAN, Associate Director HOWARD A. AMER, Assistant Director RICHARD D. PORTER, Deputy Associate Director GERALD A. EDWARDS, JR., Assistant Director VINCENT R. REINHART, Assistant Director STEPHEN M. HOFFMAN, JR., Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board JAMES V. HOUPT, Assistant Director JACK P. JENNINGS, Assistant Director DIVISION OF CONSUMER MICHAEL G. MARTINSON, Assistant Director AND COMMUNITY AFFAIRS RHOGER H PUGH, Assistant Director 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

A67 LAURENCE H. MEYER 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 EARL G. HAMILTON, Assistant Director DAVID L. SHANNON, Director JEFFREY C. MARQUARDT, Assistant Director JOHN R. WEIS, Associate Director JOHN H. PARRISH, Assistant Director JOSEPH H. HAYES, JR., Assistant Director FLORENCE M. YOUNG, Assistant Director FRED HOROWITZ, Assistant Director OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE CONTROLLER BRENT L. BOWEN, Inspector General GEORGE E. LIVINGSTON, Controller DONALD L. ROBINSON, Assistant Inspector General STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) BARRY R. SNYDER, Assistant Inspector General DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director MARIANNE M. EMERSON, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director EDWARD T. MULRENIN, Assistant Director DAY W. RADEBAUGH, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director RICHARD C. STEVENS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Bulletin • March 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. LAURENCE H. MEYER SUSAN M. PHILLIPS JACK GUYNN MICHAEL H. MOSKOW ALICE M. RIVLIN EDWARD W. KELLEY, JR. 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 ROBERT A. EISENBEIS, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary MARVIN S. GOODFRIEND, Associate Economist JOSEPH R. COYNE, Assistant Secretary WILLIAM C. HUNTER, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID E. LINDSEY, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel FREDERIC S. MISHKIN, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel LARRY J. PROMISEL, Associate Economist MICHAEL J. PRELL, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist LAWRENCE SLIFMAN, Associate Economist JACK BEEBE, Associate Economist DAVID J. STOCKTON, Associate Economist PETER R. FISHER, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL WALTER V. SHIPLEY, President CHARLES E. NELSON, 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 ROBERT W. GILLESPIE, Fourth District CHARLES E. NELSON, Tenth District KENNETH D. LEWIS, Fifth District CHARLES T. DOYLE, Eleventh District STEPHEN A. HANSEL, 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

A69 CONSUMER ADVISORY COUNCIL JULIA W. SEWARD, Richmond, Virginia WILLIAM N. LUND, Augusta, Maine RICHARD S. AMADOR, Los Angeles, California ERROL T. LOUIS, Brooklyn, New York WAYNE-KENT A. BRADSHAW, LOS Angeles, California PAUL E. MULLINGS, McLean, Virginia THOMAS R. BUTLER, Riverwoods, Illinois CAROL PARRY, New York, New York ROBERT A. COOK, Crofton, Maryland PHILIP PRICE, JR., Philadelphia, Pennsylvania HERIBERTO FLORES, Springfield, Massachusetts RONALD A. PRILL, Minneapolis, Minnesota EMANUEL FREEMAN, Philadelphia, Pennsylvania LISA RICE, Toledo, Ohio DAVID C. FYNN, Cleveland, Ohio JOHN R. RINES, Detroit, Michigan ROBERT G. GREER, Houston, Texas SISTER MARILYN ROSS, Omaha, Nebraska KENNETH R. HARNEY, Chevy Chase, Maryland MARGOT SAUNDERS, Washington, D.C. GAIL K. HILLEBRAND, San Francisco, California GAIL SMALL, Lame Deer, Montana TERRY JORDE, Cando, North Dakota YVONNE S. SPARKS, St. Louis, Missouri FRANCINE C. JUSTA, New York, New York GREGORY D. SQUIRES, Milwaukee, Wisconsin JANET C. KOEHLER, Jacksonville, Florida GEORGE P. SURGEON, Chicago, Illinois EUGENE I. LEHRMANN, Madison, Wisconsin THEODORE J. WYSOCKI, JR., Chicago, Illinois THRIFT INSTITUTIONS ADVISORY COUNCIL DAVID F. HOLLAND, Burlington, Massachusetts, President CHARLES R. RINEHART, Irwindale, California, Vice President BARRY C. BURKHOLDER, Houston, Texas STEPHEN D. HAILER, Akron, Ohio DAVID E. A. CARSON, Bridgeport, Connecticut EDWARD J. MOLNAR, Harleysville, Pennsylvania MICHAEL T. CROWLEY, JR., Milwaukee, Wisconsin GUY C. PINKERTON, Seattle, Washington DOUGLAS A. FERRARO, Englewood, Colorado TERRY R. WEST, Jacksonville, Florida WILLIAM A. FITZGERALD, Omaha, Nebraska FREDERICK WILLETTS, III, Wilmington, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Securities Credit Transactions Handbook. $75.00 per year. MS-127, Board of Governors of the Federal Reserve System, The Payment System Handbook. $75.00 per year. Washington, DC 20551 or telephone (202) 452-3244 or FAX Federal Reserve Regulatory Service. Four vols. (Contains all (202) 728-5886. You may also use the publications order four Handbooks plus substantial additional material.) $200.00 form available on the Board's World Wide Web site per year. (http://www.bog.frb.fed.us). When a charge is indicated, payment Rates for subscribers outside the United States are as follows should accompany request and be made payable to the Board of and include additional air mail costs: Governors of the Federal Reserve System or may be ordered via Federal Reserve Regulatory Service, $250.00 per year. Mastercard or Visa. Payment from foreign residents should be Each Handbook, $90.00 per year. drawn on a U.S. bank. FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL COMPUTERS. Diskettes; updated monthly. Standalone PC. $300 per year. Network, maximum 1 concurrent user. $300 per year. BOOKS AND MISCELLANEOUS PUBLICATIONS Network, maximum 10 concurrent users. $750 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. Network, maximum 50 concurrent users. $2,000 per year. 1994. 157 pp. Network, maximum 100 concurrent users. $3,000 per year. ANNUAL REPORT. Subscribers outside the United States should add $50 to cover ANNUAL REPORT: BUDGET REVIEW, 1995-96. additional airmail costs. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTIeach in the United States, its possessions, Canada, and COUNTRY MODEL, May 1984. 590 pp. $14.50 each. Mexico. Elsewhere, $35.00 per year or $3.00 each. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. ANNUAL STATISTICAL DIGEST: period covered, release date, num- 440 pp. $9.00 each. ber of pages, and price. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1981 October 1982 239 pp. $ 6.50 December 1986. 264 pp. $10.00 each. 1982 December 1983 266 pp. $ 7.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1983 October 1984 264 pp. $11.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1984 October 1985 254 pp. $12.50 RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A 1985 October 1986 231 pp. $15.00 JOINT CENTRAL BANK RESEARCH CONFERENCE. 1996. 1986 November 1987 288 pp. $15.00 578 pp. $25.00 each. 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 1980-89 March 1991 712 pp. $25.00 1990 November 1991 185 pp. $25.00 EDUCATION PAMPHLETS 1991 November 1992 215 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1992 December 1993 215 pp. $25.00 available without charge. 1993 December 1994 281 pp. $25.00 1994 December 1995 190 pp. $25.00 1990-95 November 1996 404 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages Consumer Handbook to Credit Protection Laws SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF A Guide to Business Credit for Women, Minorities, and Small CHARTS. Weekly. $30.00 per year or $.70 each in the United Businesses States, its possessions, Canada, and Mexico. Elsewhere, Series on the Structure of the Federal Reserve System $35.00 per year or $.80 each. The Board of Governors of the Federal Reserve System The Federal Open Market Committee THE FEDERAL RESERVE ACT and other statutory provisions affect- Federal Reserve Bank Board of Directors ing the Federal Reserve System, as amended through August Federal Reserve Banks 1990.646 pp. $10.00. Organization and Advisory Committees REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Lock-Ins RESERVE SYSTEM. A Consumer's Guide to Mortgage Settlement Costs ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancings Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Home Mortgages: Understanding the Process and Your Right Vol. II (Irregular Transactions). 1969. 116 pp. Each volume to Fair Lending $2.25. How to File a Consumer Complaint GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 each. Making Deposits: When Will Your Money Be Available? FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated Making Sense of Savings monthly. (Requests must be prepaid.) SHOP: The Card You Pick Can Save You Money Consumer and Community Affairs Handbook. $75.00 per year. Welcome to the Federal Reserve Monetary Policy and Reserve Requirements Handbook. $75.00 When Your Home is on the Line: What You Should Know per year. About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 STAFF STUDIES: Only Summaries Printed in the 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by BULLETIN James T. Fergus and John L. Goodman, Jr. July 1993. 20 pp. Studies and papers on economic and financial subjects that are of 165. THE DEMAND FOR TRADE CREDIT: AN INVESTIGATION OF general interest. Requests to obtain single copies of the full text or MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES, by to be added to the mailing list for the series may be sent to Gregory E. Elliehausen and John D. Wolken. September Publications Services. 1993. 18 pp. 166. THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET, by Staff Studies 1-157 are out of print. Mark Carey, Stephen Prowse, John Rea, and Gregory Udell. January 1994. Ill pp. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING PRODUCTS, by Mark J. Warshawsky with the assistance of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, Dietrich Earnhart. September 1989. 23 pp. by Stephen A. Rhoades. July 1994. 37 pp. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- 168. THE ECONOMICS OF THE PRIVATE EQUITY MARKET, by ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and George W. Fenn, Nellie Liang, and Stephen Prowse. Novem- Donald Savage. February 1990. 12 pp. ber 1995. 69 pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- 169. BANK MERGERS AND INDUSTRYWIDE STRUCTURE, 1980-94, VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by by Stephen A. Rhoades. February 1996. 32 pp. Gregory E. Elliehausen and John D. Wolken. September 1990. 35 pp. 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 1980-90, by Margaret Hastings Pickering. May 1991. REPRINTS OF SELECTED Bulletin ARTICLES 21 pp. Some Bulletin articles are reprinted. The articles listed below are 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- those for which reprints are available. GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. Limit of ten copies 163. CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR- KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, FAMILY FINANCES IN THE U.S.: RECENT EVIDENCE FROM THE Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary SURVEY OF CONSUMER FINANCES. January 1996 Ann Taylor. March 1992. 37 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Maps of the Federal Reserve System 1 9 2 BO^on MINNEAPOLIS 7 12 J • NEW YORK CHICAGO! CLEVELAND PHILADELPHIA 10 • SAN FRANCISCO KANSAS CITY I RICHMOND ST. LOUIS 5 8 11 ATLANTA DALLAS ALASKA HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city Q 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 Franber and Reserve Bank city (shown on both pages) and by cisco Bank serves American Samoa, Guam, and the Comletter (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 February 1996. 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

A73 1-A 2-B 3-C 4-D 5-E Baltimore MD V t £ _x / VT \ m •Cincinnati Buffalo MA / CT ^RI BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H •Nashville TN—«• KY AI. MI / Birmingham-^ \B Wl a. ; w r Detroit* Louisville ( GA 11AA • ^ VV-- -TN LA • Jacksonville "" ^ d •Memphis yy a, New Orleans IN Little) Rock ( MS MMiiaammii ATLANTA CHICAGO ST. LOUIS 9-1 MT 1 ND m • Helen a I • Ml m _ WJ MINNEAPOLIS 10-J 12-L WY 1 NE CO Omaha® ^ MO K8 Denver 1ft Seattle KM / Oklahoim City OK KANSAS CITY 11-K TX Salt Lake City NM •• EELL PPaass 0 \ rJ rVH«iston •Los Angeles San ANTONIO^ DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 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 Cecil W. Sewell, Jr. Dan M. Bechter1 ATLANTA 30303 Hugh M. Brown Jack Guynn David R. Jones Patrick K. Barron James M. Mckee Birmingham 35283 D. Bruce Can- Fred R. Herr1 Jacksonville 32231 Patrick C. Kelly James D. Hawkins1 Miami 33152 Kaaren Johnson-Street James T. Curry III Nashville 37203 James E. Dalton, Jr. Melvyn K. Purcell New Orleans 70161 Jo Ann Slaydon 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 Robert D. Nabholz, Jr. Robert A. Hopkins Louisville 40232 John A. Williams Thomas A. Boone Memphis 38101 John V. Myers Martha L. Perine 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 Alvin T. Johnson Sammie C. Clay Houston 77252 I. H. Kempner, III Robert Smith, III1 San Antonio 78295 H. B. Zachry, Jr. James L. Stull1 SAN FRANCISCO .... 94120 Judith M. Runstad Robert T. Parry Gary G. Michael John F. Moore Los Angeles 90051 Anne L. Evans Mark L. Mullinix1 Portland 97208 Carol A. Whipple Raymond H. Laurence1 Salt Lake City 84125 Gerald R. Sherratt Andrea P. Wolcott Seattle 98124 Richard R. Sonstelie Gordon R. G. Werkema2 •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. Executive Vice President 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. 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

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.l Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis