Federal Reserve Bulletin, 1999-11
Volume 85 • Number 11 • November 1999 Federal Reserve BULLETIN Board of Governors of the Federal Reserve System, Washington, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Table of Contents 709 THE ROLE OF SPECIALIZED LENDERS 727 ANNOUNCEMENTS IN EXTENDING MORTGAGES TO Appointment of Roger W. Ferguson, Jr., as Vice LOWER-INCOME AND MINORITY Chairman of the Board of Governors. HOMEBUYERS Appointments of chairmen and deputy chairmen Home-purchase lending to lower-income and of the Federal Reserve Banks for 2000. minority households and neighborhoods has expanded significantly and at a faster rate than Statement by Vice Chairman Roger W. Fergulending to other borrowers in recent years. Over son, Jr., on the creation of the Financial Services the same period, however, an increasing propor- Information Sharing and Analysis Center. tion of applicants for conventional home- Issuance of examination guidance cautioning purchase mortgages, including lower-income against the relaxation of credit discipline at and minority applicants, have had their applicabanks. tions denied. The first trend often has been taken as evidence that lenders' efforts to expand credit Meeting of the Consumer Advisory Council. availability have been successful, whereas the second trend has contributed to concerns about Joint report on Y2K progress made by banks, access to credit and the fairness of the lending thrift institutions, and credit unions. process. An important but little-recognized force Issuance of a joint statement on temporary behind the shift of credit toward lower-income balance sheet growth at some banking and minority borrowers has been a rapid expanorganizations. sion of activity by subprime and manufacturedhome lenders, lenders who are oriented toward Joint issuance of host state loan-to-deposit ratios lower-income and minority households. Using for determining compliance with the Interstate data collected under the Home Mortgage Dis- Act. closure Act (HMDA) from 1993 to 1998, this Enforcement actions. article finds that part of the growth in mortgage lending and most of the increase in denial rates Errata in a Federal Reserve Bulletin article. are associated with the substantial and growing share of mortgage activity of institutions that Change in Board staff. specialize in subprime and manufactured-home lending. 733 LEGAL DEVELOPMENTS Various bank holding company, bank service 724 INDUSTRIAL PRODUCTION AND CAPACITY corporation, and bank merger orders; and pend- UTILIZATION FOR SEPTEMBER 1999 ing cases. Industrial production, which had risen 1 percent over July and August, declined 0.3 percent in September, to 135.0 percent of its 1992 average. 783 MEMBERSHIP OF THE BOARD OF The rate of capacity utilization for total industry GOVERNORS OF THE FEDERAL RESERVE declined 0.4 percentage point, to 80.3 percent, SYSTEM, 1913-99 but was little changed from the rates that had prevailed in the first half of the year. List of appointive and ex officio members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A1 FINANCIAL AND BUSINESS STATISTICS A76 INDEX TO STATISTICAL TABLES These tables reflect data available as of A78 BOARD OF GOVERNORS AND STAFF September 28, 1999. A80 FEDERAL OPEN MARKET COMMITTEE AND A3 GUIDE TO TABULAR PRESENTATION STAFF; ADVISORY COUNCILS A4 Domestic Financial Statistics A82 FEDERAL RESERVE BOARD PUBLICATIONS A42 Domestic Nonfinancial Statistics A50 International Statistics A84 MAPS OF THE FEDERAL RESERVE SYSTEM A63 GUIDE TO STATISTICAL RELEASES AND A86 FEDERAL RESERVE BANKS, BRANCHES, SPECIAL TABLES AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
PUBLICATIONS COMMITTEE Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Donald L. Kohn • Stephen R. Malphrus • J. Virgil Mattingly, Jr. • Michael J. Prell • Dolores S. Smith • Richard Spillenkothen • Richard C. Stevens 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 Multimedia Technologies Center under the direction of Christine S. Griffith, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Role of Specialized Lenders in Extending Mortgages to Lower-Income and Minority Homebuyers Glenn B. Canner and Wayne Passmore, of the rowers has come from prime lenders, institutions that Board's Division of Research and Statistics, and generally focus on lending to the most creditworthy Elizabeth Laderman, of the Federal Reserve Bank borrowers. But the overall share of the conventional of San Francisco, prepared this article. Sylvia A. home-purchase mortgage market attributable to prime Freeland, Cynthia M. Johnson, and Melissa lenders has actually fallen, from about 95 percent in Mugharbel provided research assistance. 1993 to about 86 percent in 1998. This erosion in market share is attributable to an important but less- Home-purchase lending to lower-income and minor- recognized force behind the shift of credit toward ity households and to residents of lower-income and lower-income and minority borrowers—the expanminority neighborhoods has expanded significantly sion of activity by lenders specializing in subprime in recent years and at a faster rate than lending to and manufactured-home mortgages. other borrowers. Over the same period, however, an Subprime lenders concentrate on offering terms increasing proportion of applicants for conventional and seeking borrowers generally not acceptable to home-purchase mortgages (that is, mortgages not prime lenders, and the bulk of the customer base of insured or guaranteed by the government), including manufactured-home lenders is households with lower lower-income and minority applicants, have had their levels of income and wealth. From 1993 to 1998, applications denied. The first trend often has been these specialized lenders more than tripled their share taken as evidence that lenders' efforts to expand of the applications for conventional home-purchase credit availability have been successful, whereas the loans (to about 34 percent), and they likewise nearly second trend has contributed to concerns among some tripled their share of such loans extended (to about observers about access to credit and about the fair- 14 percent). ness of the lending proces's. Both subprime and manufactured-home lenders Among the commonly recognized factors pro- are oriented toward lower-income and minority moting the overall growth of housing credit is the households, among whom homeownership has spread current prolonged economic expansion—which has more rapidly than among other households in recent resulted in strong employment growth and higher years.1 These lenders have aggressively expanded incomes—and lower interest rates and modest their activity in the lower-income and minority marincreases in home prices, which have improved the ket; moreover, since most of them are not subject to affordability of homes. The increase in the proportion laws encouraging community investment, these lendof credit going to the lower-income and minority ers have expanded their activity without the goad of market has also been attributed to sharper competi- regulatory pressure applied by such laws. Because tion for borrowers, to the introduction of new tech- these lenders attract and vigorously market their sernologies that have lowered the costs of lending, and vices to less-creditworthy applicants, their emergence to the greater emphasis placed by banks and bank also bears directly on the sharp rise in mortgage regulators on expanding the availability of such credit. 1. According to the Bureau of the Census's 1992 and 1998 Current The conventional home-purchase mortgage mar- Population Survey (CPS), the proportion of households that own their ket, which is much larger than the government- places of residence (homeownership rate) for households in the lowest income quartile increased 6.2 percent in the 1992-98 period, to backed market, consists of three broad types of insti- 46.2 percent; in the highest income quartile, it increased 1.4 percent, tution that specialize in mortgage lending—prime, to 85.9 percent. subprime, and manufactured-home lenders. More In terms of racial and ethnic groups, the homeownership rate among than half of the growth in conventional home- whites in the 1992-98 period increased 4.3 percent, to 72.6 percent; among blacks, it rose 8.2 percent, to 46.1 percent; and among Hispanpurchase lending to lower-income and minority borics, it rose 12.0 percent, to 44.7 percent (CPS March Supplements). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
710 Federal Reserve Bulletin • November 1999 denial rates that has accompanied the rise in home- 1. Change in number of conventional home-purchase purchase lending. loans and change in rates of denial, by selected In this article, we use data collected pursuant to the characteristics of applicant and census tract, 1993-98 Percent Home Mortgage Disclosure Act (HMDA) for the six years from 1993 to 1998 to measure the growing Change importance of institutions that specialize in subprime CChhaarraacctteerriissttiicc Loans Denial rate and manufactured-home lending. We find that part of the growth in mortgage lending and most of the APPLICANT Income ratio increase in denial rates in the 1993-98 period are (percentage of MSA median)1 associated with the substantial and growing share of 75.1 65.6 Middle 52.8 59.5 mortgages and mortgage applications processed by 52.4 8.7 these institutions.2 Racial or ethnic identity American Indian or Alaskan Native 52.5 90.3 Asian or Pacific Islander 50.6 -19.2 Black 94.6 57.9 Hispanic 77.7 54.2 SUBPRIME AND MANUFACTURED-HOME White 40.0 70.0 LENDERS AND THE HMDA DATA CENSUS TRACT Income 2 Lower 77.8 48.6 Most mortgage lenders with offices in metropolitan Middle 62.2 62.0 Upper 51.9 25.8 areas are required by HMDA to provide annual data Racial or ethnic composition on the applications they receive for home mortgage (minorities as percentage of population) credit and on the mortgage loans they originate and Less than 10 47.9 61.0 10-49 75.7 50.0 purchase (see appendix A for details). In 1998, mort- 50-100 66.6 34.8 gage lenders subject to HMDA accounted for an All3 50.8 71.3 estimated three-fourths of all home-purchase loans MEMO extended nationwide; the coverage rate is likely Number of loans and overall denial rate, 1993 2,371,188 17.2 higher in metropolitan areas, given the focus of the law. 1. MSA median is median family income of the metropolitan statistical area (MSA) in which the property related to the loan is located. The Congress enacted HMDA to help reveal the 2. Census tracts are categorized by the median family income for the tract extent to which mortgage lenders are serving the relative to the median family income for the MSA in which the tract is located. Categories are defined as follows: lower income, median family income for housing credit needs of their local communities, census tract less than 80 percent of median family income for MSA; middle including lower-income neighborhoods. Later revi- income, at least 80 percent and less than 120 percent of MSA median; upper income, at least 120 percent of MSA median. sions to HMDA increased the scope of the data 3. Not all characteristics were reported for all applications; thus, the percentreporting to help determine whether or not mortgage ages in this line generally do not equal the weighted average of the percentages for specific characteristics. lenders are treating mortgage applicants fairly. SOURCE. Here and in subsequent tables, Federal Financial Institutions Exami- HMDA data are used to evaluate the performance nation Council, Home Mortgage Disclosure Act data. of commercial banks and savings associations under another federal law, the Community Reinvestment mortgages make up the bulk of home-purchase loans Act (CRA).3 In addition, the data are used to evaluate (about 80 percent of the home-purchase loans all types of mortgage lenders under fair lending laws, extended in 1998). Also, in the conventional market, including the Equal Credit Opportunity Act and the private entities usually bear the credit risk, and thus Fair Housing Act. their prices and underwriting standards for the most Home-purchase mortgages may be broadly part reflect the costs of extending mortgage credit. In segmented into two types—conventional and contrast, in the government-backed market, the pubgovernment-backed—and data on both are collected lic sector bears almost all of the risk, and the prices under HMDA. We focus our discussion on the con- and underwriting standards are matters of governventional market for several reasons. Conventional ment policy.4 In addition, most of the concerns expressed about the adequacy of lenders' efforts to serve lower-income and minority households and 2. For an earlier analysis of these patterns, see Randall M. Scheessele, The Impact of Manufactured Home and Subprime Loans on HMDA Rejection and Origination Rates, Housing Finance Working Paper Series (U.S. Department of Housing and Urban Development, November 1997). 4. The extent to which different institutions bear the credit risk of 3. For additional information on the CRA, see Griffith L. Garwood mortgages is examined in detail in Glenn B. Canner, Wayne Passmore, and Dolores S. Smith, "The Community Reinvestment Act: Evolution and Brian J. Surette, "Distribution of Credit Risk Among Providers of and Current Issues," Federal Reserve Bulletin, vol. 79 (April 1993), Mortgages to Lower-Income and Minority Homebuyers," Federal pp. 251-67. Reserve Bulletin, vol. 82 (December 1996), pp. 1077-1102. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Specialized Lenders and Lower-Income and Minority Homebuyers 711 2. Home-purchase loans, grouped by type of lender and distributed by type of loan, 1998 Subprime Manufactured-home Prime All MEMO MEMO MEMO MEMO LLooaann ttyyppee Distribu- Distribu- Distribu- Distribu- Number Percent tion of Number Percent tion of Number Percent tion of Number Percent tion of loan type, loan type, loan type, loan type, by lender by lender by lender by lender Government-backed 14,986 6.4 1.5 745 .3 .1 957,534 23.8 98.4 973,265 21.4 100 FHA 12,913 5.5 1.8 653 .2 .1 719,020 17.8 98.1 732,586 16.1 100 Other1 2,073 .9 .9 92 * * 238,514 5.9 99.1 240,679 5.3 100 Conventional 220,511 93.6 6.2 283,000 99.7 7.9 3,073,221 76.2 85.9 3,576,732 78.6 100 All 235,497 100 5.2 283,745 100 6.2 4,030,755 100 88.6 4,549,997 100 100 NOTE. Here and in subsequent tables, components may not sum to totals 1. Loans guaranteed by the Department of Veterans Affairs, the Farm Service because of rounding. Agency, and the Rural Housing Service. * Less than 0.05 percent. neighborhoods have historically centered on the con- only 9 percent. Among racial and ethnic groups, ventional mortgage market. denial rates increased substantially for all groups From 1993 to 1998 the number of conventional except Asian applicants, for whom denial rates fell. home-purchase mortgages extended to lower-income As discussed below, manufactured-home lenders borrowers increased about 75 percent, according to have played the major role in these changes, with HMDA data, while lending to upper-income bor- subprime lenders also having an important influence. rowers increased about 52 percent (table 1). Homepurchase lending to black and Hispanic borrowers in particular increased substantially over this period MANUFACTURED HOMES AND THE HOUSING (95 percent and 78 percent respectively, compared MARKET with 40 percent for white borrowers). The pattern is similar across borrower groups in both the conven- Manufactured housing is a growing, although sometional market and the much smaller government- times overlooked, segment of the housing market and backed market (the latter of which consists mainly of provides homeownership opportunities for many mortgages insured by the Federal Housing Adminis- households, particularly those with lower levels of tration, or FHA—not shown in table). income and wealth. In contrast with homes built at Most of this growth can be attributed to the long the purchaser's site ("site-built" homes), manufaceconomic expansion that began in 1991, low interest tured homes are assembled in a factory, transported rates, and slow growth in home prices.5 In the con- to the purchaser's site, and typically placed on a ventional mortgage market, growth also has been permanent foundation. Once placed on the foundapromoted by the wider availability of new affordable tion, the home may receive some enhancements, such loan products among prime lenders, such as mort- as the addition of a porch or deck. gages with very low down payment requirements, About 8 percent of the U.S. population resides and by the increasing activity of subprime and year-round in roughly 9 million manufactured manufactured-home lenders. homes.7 In 1998, about 80 percent of the residents Over the same period, the HMDA data show a of manufactured homes owned their homes.8 In conrising denial rate for conventional home-purchase trast, the ownership rate for other nonfarm, one- to mortgages. From 1993 to 1998, the denial rate four-family houses was about 64 percent. increased 71 percent, to a historically high level of Annual shipments of new manufactured homes 29 percent of all mortgage applicants.6 Denial rates grew about 47 percent, to 373,000 homes, from 1993 for lower-income applicants rose nearly 66 percent, to 1998. Over the same period, the annual number whereas denial rates for upper-income applicants rose of new site-built homes increased 24 percent, to 1.47 million homes. Currently, nearly 20 percent of 5. For an evaluation of the importance of different factors contributing to the growth in mortgage lending, see Douglas D. Evanoff and 7. Manufactured homes are sometimes referred to as "mobile Lewis M. Segal, "CRA and Fair Lending Regulations: Resulting homes" but are rarely moved after initial placement on a site. This Trends in Mortgage Lending," Federal Reserve Bank of Chicago, housing category does not include recreational vehicles. For more Economic Perspectives (November/December 1996), pp. 19-46. information, see Manufactured Housing Institute, Just the Facts 6. In contrast, denial rates for government-backed home-purchase (Arlington, Va., March 25, 1999). mortgages fell nearly 40 percent over this period, to about 8 percent 8. Board of Governors of the Federal Reserve System, 1998 Sur- (not shown in tables). vey of Consumer Finances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
712 Federal Reserve Bulletin • November 1999 3. Borrowers of conventional home-purchase loans, grouped by type of lender and distributed by selected characteristics of borrower and census tract, 1998 Percent Subprime Manufactured-home Prime All MEMO MEMO MEMO MEMO CChhaarraacctteerriissttiicc Percentage Percentage Percentage Percentage of loans to of loans to of loans to of loans to Number Percent Number Percent Number Percent Number Percent borrower borrower borrower borrower group, by group, by group, by group, by lender type lender type lender type lender type BORROWER Income ratio (percentage of MSA median) Lower 48,711 28.5 6.8 97,845 58.4 13.7 566,134 22.0 79.4 712,690 24.4 100 Middle 47,274 27.7 6.3 44,171 26.4 5.9 662,614 25.7 87.9 754,059 25.9 100 Upper 74,676 43.8 5.1 25,475 15.2 1.8 1,349,93 52.3 93.1 1,450,08 49.7 100 All 170,661 100 5.9 167,491 100 5.7 2,578,682 100 88.4 2,916,834 100 100 Racial or ethnic identity American Indian or Alaskan Native . ,. 1,076 .6 8.2 2,773 1.1 21.0 9,326 .3 70.8 13,175 .4 100 Asian or Pacific Islander . 7,987 4.5 6.7 1,283 .5 1.1 109,216 3.9 92.2 118,486 3.7 100 Black 24,689 13.9 15.6 27,750 10.5 17.5 105,827 3.8 66.9 158,266 4.9 100 Hispanic 16,893 9.5 10.4 16,931 6.4 10.4 128,541 4.6 79.2 162,365 5.1 100 White 127,523 71.6 4.6 215,230 81.5 7.8 2,417,617 87.3 87.6 2,760,370 85.9 100 All 178,168 100 5.5 263,967 100 8.2 2,770,527 100 86.2 3,212,662 100 100 CENSUS TRACT Income Lower 38,808 20.3 12.0 37,121 22.9 11.5 247,866 9.5 76.6 323,795 10.9 100 Middle 90,743 47.5 6.4 102,609 63.2 7.2 1,223,007 46.8 86.3 1,416,359 47.7 100 Upper 61,608 32.2 5.0 22,644 13.9 1.8 1,143,066 43.7 93.1 1,227,318 41.4 100 All 191,159 100 6.4 162,374 100 5.5 2,613,939 100 88.1 2,967,472 100 100 Racial or ethnic composition (minorities as a percentage of population) Less than 10 69,648 36.5 4.4 73,095 45.0 4.6 1,451,780 55.7 91.0 1,594,523 53.8 100 10-49 88,670 46.5 7.7 71,620 44.1 6.2 997,974 38.3 86.2 1,158,264 39.1 100 50-100 32,437 17.0 15.6 17,756 10.9 8.5 158,259 6.1 75.9 208,452 7.0 100 All 190,755 100 6.4 162,471 100 5.5 2,608,013 100 88.1 2,961,239 100 100 NOTE. Not all characteristics were reported for all applications; thus, the total number of applications with racial or ethnic group identified varies from the total with income identified. See also notes to table 1. new single-family residences are manufactured constructed in factories and shipped largely complete homes.9 to a dealer or homeowner. Homebuyer interest in manufactured homes stems An increased variety of styles and amenities has in part from their relatively low price per square also raised homebuyer interest in manufactured foot—on average about 50 percent lower than that of homes in recent years. One type of product—the site-built homes.10 The lower price per square foot multisectional home—has grown in popularity and for manufactured homes reflects, in part, economies now accounts for nearly three-fifths of manufacturedof scale in production that result from their being home production. In addition, the use of better construction techniques and materials has extended the useful lives of newer manufactured homes—the 9. U.S. Department of Housing and Urban Development, U.S. industry estimates that the "habitable life" for such Housing Market Conditions, table 5—"Manufactured (Mobile) Home homes built over the past two decades exceeds sev- Shipments, Residential Placements, Average Prices, and Units for Sale: 1974-Present"; and table 6—"New Privately Owned Housing enty years.11 In turn, as the lifespan of manufactured Units Completed: 1968-Present." The data are through the first quar- homes has lengthened, lenders have become more ter of 1999. willing to finance purchases over longer periods. 10. In 1997, a new manufactured home on average had 1,420 square feet of living area and cost $41,100 ($29 per square foot), Most loans for new units are still for fifteen years or while the average new site-built home had 2,150 square feet and cost (excluding its site) $132,150 ($61 per square foot). See Manufactured Housing Institute, Average Sales Price of New Manufactured Homes 11. Carol B. Meeks, Manufactured Home Life: Existing Housing Placed for Residential Use: All Homes, Single Section and Multi- Stock through 1997 (Manufactured Housing Institute, Arlington, Va., section Homes (1990-1997) (Arlington, Va„ 1998). May 1998). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Specialized Lenders and Lower-Income and Minority Homebuyers 713 less, but the maturities on more than 40 percent of the 4. Share of change in number of conventional homeloans on new multisection units exceed fifteen years, purchase loans, grouped by selected characteristics of borrower and census tract and distributed by type and some lenders offer loans with maturities of thirty of lender, 1993-98 years.12 Percent Because of their relatively low cost, manufactured homes are an important housing option for house- Manu- Characteristic SSuubbpprriimmee factured- Prime All holds of modest means, including first-time home- home buyers. In 1995 the median household income of BORROWER manufactured-home owners was $22,000, and their Income ratio (percentage of median net worth was nearly $27,000. By compari- MSA median) son, the median household income for all other Lower 15.1 25.3 59.6 100 Middle 16.9 13.5 69.6 100 homeowners that year was about $42,000, and their Upper 13.9 4.1 82.0 100 median net worth was $117,000.13 Racial or ethnic identity American Indian or Alaskan Native 22.6 48.3 29.1 100 Asian or Pacific Islander 17.2 2.4 80.5 100 IDENTIFYING SPECIALIZED LENDERS 30.5 26.9 42.6 100 Hispanic 22.3 18.7 59.0 100 IN THE HMDA DATA White 15.0 16.0 69.0 100 CENSUS TRACT The identity of specialized lenders cannot be deter- Income Lower 26.1 21.9 52.1 100 mined directly from the HMDA data, which do not Middle 15.9 14.6 69.6 100 generally include information on the credit quality of Upper 13.6 4.3 82.1 100 All 17.0 14.9 68.1 100 applications and loans (relevant for identifying Racial Composition subprime lenders) nor on the type of homes involved (minorities as a percentage of (relevant for identifying manufactured-home lendpopulation) ers).14 But by combining information from HMDA Less than 10 13.0 10.7 76.3 100 10-49 16.4 11.6 71.9 100 and other sources, specialized lenders who reported 50-100 36.4 18.1 45.5 100 HMDA data over the 1993-98 period can be identi- All 17.0 14.9 68.1 100 fied (for details, see appendix B). NOTE. See notes to table 1. Manufactured-Home Lending extended for new units, the specialists likely accounted for well more than half.15 Relatively few of the institutions covered by HMDA More than 99 percent of the loans extended for specialize in manufactured-home lending, although the purchase of manufactured homes are convenmany institutions, including many community banks, tional, although some government agencies, includoffer such loans. The twenty-two manufactured-home ing the FHA and the Department of Veterans Affairs, loan specialists identified in the 1998 HMDA data insure or guarantee loans to purchase manufactured (table B.l) received 1.6 million applications for con- homes (table 2). In 1998, manufactured-home lenders ventional home-purchase loans (not shown in table), received 24 percent of the 6.7 million applications and they extended 283,000 such loans. The U.S. for conventional home-purchase loans reported Department of Housing and Urban Development under HMDA (not shown in table) and accounted (HUD) has estimated that these loans accounted for for 8 percent of all the conventional home-purchase about half of all loans extended in 1998 for new and mortgages. used manufactured homes and also that, of loans Mortgages on manufactured homes generally have several characteristics that produce a degree of credit risk higher than that for loans collateralized by site- 12. Manufactured Housing Institute, Manufactured Home Financ- built homes. First, lenders for manufactured homes ing (Arlington, Va„ 1998). tend to require lower down payments because buyers 13. For a general description of the survey from which these figures were derived, see Arthur B. Kennickell, Martha Starr-McCluer, of these homes generally have lower levels of income and Annika E. Sunden, "Family Finances in the U.S.: Recent Evidence from the Survey of Consumer Finances," Federal Reserve Bulletin, vol. 83 (January 1997), pp. 1-24. 14. The Federal Reserve Board is reviewing its Regulation C, which implements HMDA. Among the changes under consideration is 15. See Randall M. Scheessele, 1998 HMDA Highlights, Housing a requirement for lenders to identify whether an application or loan Finance Working Papers (U.S. Department of Housing and Urban involves a manufactured home. Development, October 1999), appendix D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
714 Federal Reserve Bulletin • November 1999 5. Share of conventional home-purchase loans, grouped by selected characteristics of borrower and census tract and distributed by type of lender, 1993 and 1998 Percent 1993 1998 CChhaarraacctteerriissttiicc Manufactured- Manufactured- Subprime Prime All Subprime Prime All home home BORROWER Income ratio (percentage of MSA median) Lower 5.0 94.3 100 6.8 13.7 79.4 100 Middle 1.8 97.5 100 6.3 5.9 87.9 100 Upper .5 98.9 100 5.1 1.8 93.1 100 Racial or ethnic identity American Indian or Alaskan Native .6 6.7 92.7 100 8.2 21.0 70.8 100 Asian or Pacific Islander ... 1.5 .4 98.1 100 6.7 1.1 92.2 100 Black 1.5 8.7 89.8 100 15.6 17.5 66.9 100 Hispanic 1.2 4.0 94.8 100 10.4 10.4 79.2 100 White .5 4.5 95.0 100 4.6 7.8 87.6 100 CENSUS TRACT Income Lower 1.0 3.4 95.6 100 12.0 11.5 76.6 100 Middle .5 2.7 96.8 100 6.4 7.2 86.3 100 Upper .6 .6 98.9 100 5.0 1.8 93.1 100 Racial Composition (minorities as a percentage of population) Less than 10 .2 1.6 98.1 100 4.4 4.6 91.0 100 10-49 1.0 2.1 96.9 100 7.7 6.2 86.2 100 50-100 1.6 2.1 96.3 100 15.6 8.5 75.9 100 All 4.4 95.0 100 6.2 7.9 85.9 100 NOTE. See notes to table 1. and wealth than buyers of site-built homes.16 Second, applications of the financially weakest prospective manufactured-home borrowers have fewer resources borrowers to several different lenders by sending out on which to rely during financial difficulties, again multiple applications on behalf of the applicants.18 because they generally have lower incomes and less To the extent that this practice creates relatively wealth. This lack of a financial cushion is reflected in more multiple applications from less-creditworthy a relatively high delinquency rate for these loans.17 applicants compared with similar practices in other Third, the applicants for manufactured-home loans parts of the mortgage market, the denial rate for tend on average to have weaker credit histories than manufactured-home lenders would be higher than mortgage applicants in the prime market. Given the that of other mortgage lenders. Moreover, increased higher risks associated with the borrowers in this competition among lenders in the manufacturedmarket, lenders tend to deny a higher proportion of home loan market over the past few years may have applications and to charge higher interest rates for the encouraged dealers to shop applicants even more mortgages. intensively among lenders and may help explain ris- A factor that may exaggerate the denial rate for ing denial rates in this market. manufactured-home loans is the practice among dealers of manufactured homes to "shop" the credit Subprime Mortgage Lending 16. In 1997, about three-fifths of the loans for purchasing new As in the manufactured-home mortgage market, manufactured homes were extended with down payments of 15 percent or less. In contrast, more than three-fifths of homebuyers of almost all mortgages (94 percent) extended by lendnewly constructed site-built homes made a down payment of 20 per- ers specializing in subprime loans and reporting cent or more (Manufactured Housing Institute, Manufactured Home under HMDA are conventional mortgages, with the Financing, p. 6). 17. For example, on average in 1998, 4.7 percent of manufactured- bulk of the remainder insured by the FHA (table 2). home mortgages held by commercial banks were delinquent, compared with 3.0 percent for conventional site-built home mortgages held by all mortgage lenders. See American Bankers Association, 18. See Pramilia Gupta, Jeffery L. Woff, and Sombat Jiwariyavej, Consumer Credit Delinquency Bulletin (Washington, D.C., fourth "Cracks in the Foundation: How Changing 'MH' Industry Dynamics quarter 1998); and Mortgage Bankers Association of America, Are Affecting Investors' Credit Risk," Moody's Structured Finance, National Delinquency Survey (Washington, D.C., fourth quarter 1998). October 2, 1998. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Specialized Lenders and Lower-Income and Minority Homebuyers 715 6. Distribution of applications for conventional home-purchase loans and denial rate, by type of lender, 1993 and 1998 Percent 1993 1998 Contribution to denial rate Contribution to denial rate TTTyyypppeee ooofff llleeennndddeeerrr SShhaarree ooff Percentage SShhaarree ooff Percentage aapppplliiccaattiioonnss DDeenniiaall rraattee points Percent aapppplliiccaattiioonnss DDeenniiaall rraattee points Percent ((11)) ((22)) (1) X (2) ((11)) ((22)) (1) X (2) Subprime .8 23.4 .2 1.2 10.4 32.5 3.4 11.6 Manufactured-home 9.5 44.0 4.2 24.4 23.7 64.5 15.3 52.4 Prime 89.6 14.3 12.8 74.4 65.9 16.2 10.7 36.0 All 100 17.2 17.2 100 100 29.3 29.3 100 In contrast, among prime lenders, government- rating, and their quality could be better or worse than backed loans (of all types) make up more than 20 per- that of D loans. cent of their home-purchase mortgages. HMDA data The market for subprime home-purchase mortfor earlier years show a similar pattern (not shown in gages may be called a "residual" market. Although table). each subprime lender applies a standard for credit In 1998, subprime lenders received 10 percent of quality that will exclude some applicants, these lendthe 6.7 million applications for conventional home- ers as a whole cannot easily be defined in terms of the purchase mortgages reported under HMDA and maximum credit risk they will accept; nor can accounted for 6 percent of all the conventional home- subprime borrowers be defined in terms of minimum purchase mortgages extended during that year. credit quality. Thus, unlike the prime market, the subprime market has no clear "bottom" to the credit quality of applications that will be submitted nor of CREDIT STANDARDS, DENIALS, AND the loans that will be accepted. DELINQUENCIES IN THE SUBPRIME MARKET Subprime lenders, who by definition accept higher risk, nonetheless have higher rates of denial than The credit risk of a loan is judged according to the prime lenders, perhaps because many subprime lendfeatures of the loan (such as term, interest rate, and ers actively pursue mortgage applications from a size of the down payment), the financial characteris- group of potential borrowers who have a wider range tics of the borrower, and the value of the property that of credit characteristics and circumstances than appliserves as collateral. Mortgages intended to be sold cants in the prime market. Moreover, the underwritare graded from A (prime) to D as a means of ing standards used in the prime market may be more summarizing the overall credit risk they pose. Two widely known than are the standards in the subprime housing-related government-sponsored enterprises market. This circumstance would allow applicants (GSEs) buy most of the prime mortgages that are who do not meet the prime standards to more easily offered for sale: the Federal National Mortgage Asso- avoid a denial and apply instead in the subprime ciation (Fannie Mae) and the Federal Home Loan market. Mortgage Corporation (Freddie Mac).19 Active solicitation of applicants by subprime lend- Subprime mortgages are those that in some way ers is applauded by some observers, who see it helpexceed the level of credit risk that the GSEs are ing make mortgage credit and homeownership more willing to accept; subprime loans intended for sale widely available. Other observers disapprove of these receive a rating of A-, B, C, or D.20 Subprime loans solicitation practices, believing that they encourage that the lender chooses to retain have no need of a some mortgage borrowers to apply for too much credit at too high an interest rate. 19. Mortgages for amounts above a certain limit (adjusted annually) are by statute not eligible for purchase by the GSEs. These How Subprime Loans Differ from Prime Loans so-called jumbo mortgages nonetheless may be either prime or subprime in quality. 20. The GSEs may also purchase "alt-A" or "A-" mortgages that Most subprime mortgages fail to meet prime stando not strictly meet their underwriting standards but that have some dards in one of four ways. First, the borrower's credit other characteristic that may make their credit risk equivalent to that of an A-rated mortgage. history, typically summarized by a credit score based Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
716 Federal Reserve Bulletin • November 1999 7. Denial rates on applications for conventional home-purchase loans for selected characteristics of applicant and census tract, by type of lender, 1993-98 Percent Subprime Manufactured-home cnaractenstic 1993 1994 1995 1996 1997 1998 1993 1994 1995 1996 1997 1998 APPLICANT Income ratio (percentage of MSA median) Lower 33.9 25.9 29.6 43.5 24.4 34.4 47.6 53.6 56.8 60.9 64.9 64.7 Middle 20.1 19.1 22.2 27.8 19.6 24.9 38.8 42.4 48.1 51.3 54.8 55.7 Upper 18.0 16.1 19.1 19.4 16.6 19.1 32.1 32.1 39.3 42.1 44.8 47.2 Racial or ethnic identity American Indian or Alaskan Native 25.6 19.1 28.1 57.5 28.4 46.7 48.4 56.1 61.6 66.1 67.5 70.5 Asian or Pacific Islander . 14.3 15.4 15.6 16.2 14.4 19.1 42.3 44.9 50.5 52.3 49.5 51.8 Black 26.7 25.6 29.0 48.9 21.9 39.2 58.4 58.8 64.2 70.7 74.4 76.1 Hispanic 25.2 22.3 24.9 45.8 19.7 34.2 49.8 55.3 60.3 61.8 64.9 67.9 White 16.7 16.1 20.0 35.3 17.2 30.7 41.9 46.6 51.7 56.1 59.3 61.6 CENSUS TRACT Income Lower 34.2 27.3 28.8 39.9 23.1 28.9 47.5 51.1 55.5 59.2 63.5 63.0 Middle 23.4 19.8 23.1 30.8 20.6 27.0 42.9 47.3 51.2 55.2 59.2 59.7 Upper 16.5 15.3 19.4 22.0 16.8 20.4 42.2 45.5 51.6 55.4 58.0 59.2 Racial or ethnic composition (minorities as percentage of population) Less than 10 25.9 19.5 23.3 28.9 19.9 24.7 42.1 45.9 50.1 54.3 57.4 58.6 10-49 19.6 17.6 21.3 28.5 19.2 25.3 44.5 48.9 53.1 57.0 61.2 60.9 50-100 29.8 25.6 27.3 37.1 22.7 28.2 48.6 51.1 56.9 59.9 64.2 65.0 AH 23.4 20.3 23.8 37.8 20.8 32.5 44.0 48.6 54.1 58.8 62.1 64.5 on the borrower's previous payment experience, usu- and other payment obligations. However, primeally must meet a certain threshold for the borrower to mortgage borrowers are usually expected to docube considered a prime-mortgage borrower. One com- ment this ability with pay stubs, tax records, and mon standard is the Fair Isaac Company's credit other financial documents. One segment of the score, called the FICO score.21 Prime borrowers often subprime mortgage market involves the extension of have scores above 650 on an 800-point scale, whereas credit to borrowers who cannot, or do not want to, subprime borrowers often have scores from 550 to provide such documentation; this segment is referred 650. to as the "low doc" or "no doc" mortgage market. A second underwriting standard traditionally used Finally, the terms of the loan can affect the credit in the prime market is that the monthly housing risk to the lender. For A-rated borrowers, lenders expenses of the borrower should not exceed 28 per- typically lend no more than 80 percent of the home's cent of pretax monthly income and that housing value unless the homeowner also purchases private expenses plus other loan payments should not exceed mortgage insurance to provide the lender additional 36 percent of pretax income. These ratios have protection in case the borrower defaults. Mortgages become less strict in recent years, with lenders and with loan-to-value ratios higher than 80 percent that the GSEs willing to accept higher ratios when there is do not have mortgage insurance or some other type of evidence of other sources of financial strength. How- credit enhancement are often rated subprime. ever, for ratios that are more than 5 percentage points Typically, lenders will have subprime mortgage above those mentioned here, the borrower would programs that cater to borrowers that fail traditional generally be considered subprime. underwriting criteria in only one of the ways men- Third, whether they are prime or subprime, all tioned above. For example, "low doc" loans do not mortgage borrowers are expected to earn an income require the same level of income documentation but sufficient for them to make their mortgage payment often require that the homebuyer make a down payment that exceeds 20 percent of the loan value. Similarly, programs that target borrowers who desire 21. For additional information about credit scoring, see Robert B. high loan-to-value ratios often require such borrow- Avery, Raphael W. Bostic, Paul S. Calem, and Glenn B. Canner, ers to have a pristine credit history as indicated by a "Credit Risk, Credit Scoring, and the Performance of Home Mortrelatively high FICO score. gages," Federal Reserve Bulletin, vol. 82 (July 1996), pp. 621-48. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Specialized Lenders and Lower-Income and Minority Homebuyers 13 7.—Continued Percent Prime All cnaractenstic 1993 1994 1995 1996 1997 1998 1993 1994 1995 1996 1997 1998 APPLICANT Income ratio (percentage of MSA median) Lower 18.1 16.3 18.4 20.8 21.5 17.6 21.5 22.7 29.9 34.2 37.0 35.6 Middle 10.9 9.8 10.4 11.6 11.7 10.2 12.1 12.4 16.1 18.3 19.6 19.3 Upper 8.9 7.1 7.1 8.0 8.0 7.0 9.2 7.8 8.7 9.8 10.1 10.0 Racial or ethnic identity American Indian or Alaskan Native 24.6 23.6 28.4 36.6 39.1 36.9 27.8 31.6 41.4 50.2 51.9 52.9 Asian or Pacific Islander . 14.3 11.3 10.9 12.3 11.5 9.6 14.6 12.0 12.5 13.8 12.7 11.8 Black 28.1 25.4 28.8 34.6 39.0 36.9 34.0 33.4 40.5 48.8 53.0 53.7 Hispanic 22.9 19.9 21.3 24.5 27.3 24.4 25.1 24.6 29.5 34.4 37.8 38.7 White 12.5 11.8 13.4 15.3 16.2 14.0 15.3 16.4 20.6 24.1 25.8 26.0 CENSUS TRACT Income Lower 19.6 17.2 17.9 20.3 20.2 17.7 21.9 21.6 26.3 31.7 32.9 32.4 Middle 12.4 10.8 11.4 13.3 13.5 11.6 14.3 14.5 18.0 21.4 23.4 23.0 Upper 8.8 7.6 7.7 8.8 8.5 7.2 9.3 8.7 10.1 11.7 12.0 11.7 Racial or ethnic composition (minorities as percentage of population) Less than 10 9.2 8.0 8.5 10.1 10.2 8.7 10.5 10.5 13.2 15.8 16.9 16.9 10-49 13.3 11.5 12.0 13.5 13.3 11.3 14.8 14.7 18.2 21.6 22.9 22.2 50-100 21.6 18.6 18.8 21.3 20.7 18.3 23.0 21.8 25.6 30.7 31.4 31.0 AH 14.3 13.4 15.1 17.2 183 16.2 17.2 18.1 22.6 26.8 28.6 29.3 NOTE. See notes to table 1. Delinquencies and Regulatory Scrutiny in the because of the high credit risks associated with such Subprime Market loans. Although such lending by depositories is usually only one part of a larger and more diverse About 63 percent of subprime loans are rated A-, mortgage portfolio, regulators require that institu- 26 percent are rated B, 10 percent are rated C, and tions with significant proportions of subprime mortless than 2 percent are rated D. As expected, the gages (or holding the credit risk associated with proportion of loans that are delinquent rises as the securities backed by such mortgages) hold relatively credit quality of the loan falls. At the end of the first more capital against possible credit losses.24 Finanquarter of 1999, 3.1 percent of A- mortgages were cial markets, too, require that lenders specializing in seriously delinquent (more than ninety days past due this part of the mortgage market carry more capital or in foreclosure).22 In contrast, less than 1 percent and operate under stricter financial requirements than of Fannie Mae's and Freddie Mac's mortgages were lenders oriented toward prime borrowers. seriously delinquent.23 Higher capital standards and potentially higher Regulators of depository institutions give activity credit losses notwithstanding, many institutions have in subprime mortgages special scrutiny, in part entered the subprime lending market in the past several years. Subprime lending was once the province of specialists who originated such mortgages to securitize and sell through public markets or to sell as 22. In the other categories, 6.3 percent of B mortgages, 8.8 percent "whole loans" to private investors. But now a signifiof C mortgages, and 21.5 percent of D mortgages were seriously cant number of depository institutions and large mortdelinquent ("B&C Delinquencies Down in March 1999, MIC Data Reveal," Inside B&C Lending, May 31, 1999). 23. These delinquency numbers may overstate the differences between subprime and prime mortgages, however, because delinquency statistics on subprime loans include not only home-purchase mortgages but also home equity loans (between 60 percent and 90 percent of subprime mortgage originations are first mortgages). See 24. See Board of Governors of the Federal Reserve System, "Retail, A- Loans Pace the Subprime Market During 1999's First "Subprime Lending," Supervision and Regulation Letter 99-6, Quarter," Inside B&C Lending, June 14, 1999. March 5, 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
718 Federal Reserve Bulletin • November 1999 8. Share of applications for conventional home-purchase loans, grouped by selected characteristics of borrower and census tract and distributed by type of lender, 1993-98 Percent- Subprime Manufactured-home cnaractensuc 1993 1994 1995 1996 1997 1998 1993 1994 1995 1996 1997 1998 APPLICANT Income ratio (percentage of MSA median) Lower .9 1.5 1.8 2.9 4.4 10.8 11.1 16.7 29.3 31.8 35.5 34.4 Middle .9 1.4 1.9 2.5 4.6 10.3 4.0 7.5 14.5 15.8 17.4 16.7 Upper .8 1.4 1.7 2.1 3.7 8.3 1.1 2.2 4.2 4.5 4.8 4.8 Racial or ethnic identity American Indian or Alaskan Native .6 .9 1.1 2.7 2.3 10.4 13.5 24.7 39.2 44.0 46.0 44.6 Asian or Pacific Islander . 1.5 2.2 2.5 2.8 4.0 9.9 .9 1.7 3.7 3.3 2.9 3.0 Black 1.4 1.9 2.4 4.5 5.8 16.5 19.5 24.0 33.1 37.4 42.4 42.0 Hispanic 1.3 1.8 1.9 3.8 4.3 12.8 8.3 13.1 20.8 24.4 29.0 30.0 White .5 .9 1.0 1.8 2.6 7.3 9.7 13.1 18.5 20.7 22.2 22.8 CENSUS TRACT Income Lower 1.6 2.3 3.0 4.4 7.4 17.6 7.2 12.5 21.4 27.1 28.8 28.0 Middle .7 1.2 1.7 2.2 4.2 10.7 5.9 9.7 16.1 18.6 21.0 20.3 Upper .7 1.4 1.9 2.1 3.5 8.4 1.4 2.8 5.0 5.8 6.5 6.6 Racial or ethnic composition (minorities as percentage of population) Less than 10 .4 .8 1.3 1.7 3.3 8.0 3.8 6.3 10.8 12.3 13.5 13.8 10-49 1.2 1.9 2.4 2.9 4.7 11.8 4.7 8.3 14.5 17.4 19.5 18.5 50-100 2.1 2.9 4.0 5.5 9.1 22.4 4.5 9.4 17.0 22.0 24.1 22.5 All .8 1.3 1.6 2.6 3.9 10.4 9.5 13.2 19.0 21.7 23.3 23.7 gage bankers have subprime lending programs.25 In home mortgages and nearly 30 percent of those for addition, to the degree that the GSEs accept larger subprime mortgages were of lower income, whereas numbers of mortgages previously characterized as in the prime market the ratio was only 22 percent "subprime" under their underwriting standards (table 3). (because, they would argue, new technologies and Among all subprime and manufactured-home mortgage products allow them to better measure and lenders in 1998, the proportions of black and accommodate credit risk), the volume of mortgages Hispanic borrowers ranged from a low of about 6 peravailable to subprime originators diminishes. cent (Hispanic borrowers of manufactured-home mortgages) to about 14 percent (black borrowers of subprime loans); in the prime market that year, CHARACTERISTICS OF BORROWERS about 4 percent of the borrowers were black and FOR SUBPRIME AND MANUFACTURED-HOME about 5 percent were Hispanic. Subprime and MORTGAGES manufactured-home lending is also relatively more concentrated in lower-income and minority The market for subprime mortgages differs from that neighborhoods. for manufactured-home mortgages, but common to Regarding their share of all lower-income and both is a relatively high proportion of lower-income minority borrowers, subprime and manufacturedand minority applicants and borrowers. In 1998, home lenders together in 1998 provided one-fifth nearly 60 percent of the borrowers for manufactured- of the mortgages extended by all lenders to lowerincome borrowers, one-third of the mortgages extended to black borrowers, and one-fifth of the 25. With the expansion of these institutions into subprime lending, mortgages extended to Hispanic borrowers (memo observers have raised concerns about "over competition" in the items, table 3). In contrast, only 7 percent of uppersubprime market. income borrowers took a mortgage from a subprime The subprime lending programs at most large depository institutions or their holding companies are usually kept separate from the or manufactured-home lender, and only about 12 perbank's other mortgage lending activities because the business is quite cent of white borrowers obtained mortgages from different, with its emphasis on underwriting and servicing less creditthese sources. worthy borrowers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Specialized Lenders and Lower-Income and Minority Homebuyers 719 8.—Continued increase in lending to upper-income and white borrowers were significantly lower—18 percent and Percent 31 percent respectively. As a result, subprime and Prime manufactured-home lenders' share of conventional CChhaarraacctteerriissttiicc home-purchase mortgages extended to lower-income 1993 1994 1995 1996 1997 1998 and minority borrowers tripled (quadrupled in the APPLICANT case of Hispanic borrowers) over the period, reaching Income ratio (percentage levels of one-fifth to one-third (table 5). of MSA median) Lower 87.9 81.8 68.9 65.3 60.1 54.9 Although prime market lenders accounted for the Middle 95.1 91.1 83.7 81.7 78.0 72.9 Upper 98.2 96.4 94.1 93.4 91.6 86.9 remainder of the growth in lending, some of their Racial or ethnic identity expansion also likely consists of an increase in American Indian or subprime and manufactured-home lending, in part Alaskan Native 85.9 74.4 597 53.3 51.7 45.0 Asian or Pacific Islander . 97.6 96.1 93.9 93.9 93.1 87.1 because of recent acquisitions of some of these spe- Black 79.1 74.1 64.6 58.0 51.7 41.5 Hispanic 90.4 85.1 77.2 71.8 66.7 57.2 cialized lenders. Many of the prime lenders have White 89.8 86.0 80.4 77.4 75.2 69.9 been aggressively pursuing lower-income homebuy- CENSUS TRACT ers, partly in an effort to develop new profitable Income Lower 91.1 85.2 75.5 68.5 63.8 54.4 market niches and to respond to public concerns Middle 93.4 89.1 82.2 79.2 74.9 69.0 about the availability of such lending; prime lenders Upper 97.9 95.8 93.2 92.1 90.0 85.1 may see subprime and manufactured-home lending Racial or ethnic composition (minorities as one way to reach more of these borrowers.26 As a as percentage of consequence, our measure of the proportion of population) Less than 10 95.8 92.8 87.9 86.0 83.1 78.2 growth in mortgage lending attributable to subprime 10-49 94.1 89.8 83.1 79.6 75.8 69.7 50-100 93.3 87.8 79.1 72.6 66.8 55.1 and manufactured-home lending may be understated All 89.6 85.5 79.5 75.7 72.9 65.9 because we count such mortgages only when they are made by institutions that specialize in these areas. NOTE. Sum of percentages across lender types for a given characteristic in a given year equals 100. See also notes to table 1. THE INFLUENCE OF SUBPRIME CHANGES IN CONVENTIONAL HOME-PURCHASE AND MANUFACTURED-HOME LENDERS LENDING ON MORTGAGE DENIALS As noted above, since 1993 the number of conven- Denial rates for conventional home-purchase morttional home-purchase mortgages has increased nearly gages have been increasing steadily, rising from 51 percent, with relatively larger increases among 17 percent in 1993 to 29 percent in 1998 (table 6). lower-income and minority homebuyers and neigh- Some observers are concerned that this trend might borhoods (table 1). Favorable economic conditions, indicate that mortgage lenders are exerting less expanded mortgage market competition, new infor- effort in providing home-purchase credit to all segmation technology, relatively rapid minority popula- ments of their communities, including lower-income tion growth, and recently developed affordable home- and minority applicants. Others believe quite the loan programs have all contributed to this high opposite—that increased efforts by traditional mortgrowth rate. All borrowers in the mortgage market gage lenders to reach borrowers whose creditworthihave benefited from these trends, but perhaps lower- ness is weaker or more difficult to determine have income borrowers, including those that rely on resulted in both more mortgage lending and more subprime and manufactured-home loans, have bene- denials. fited the most because their creditworthiness is more Both these views ignore the increasing share of likely to improve—and more likely to be discovered conventional home-purchase mortgage applications by lenders—under these circumstances. going to subprime and manufactured-home lenders Although small in number, subprime and that, by the nature of their business, have high and, as manufactured-home lenders accounted for about onethird of the growth in mortgage lending from 1993 to 1998 (table 4). Their shares of the growth among lower-income and minority borrowers and neighbor- 26. See Glenn Canner and Wayne Passmore, The Community Reinhoods was even larger, ranging from 40 percent to vestment Act and the Profitability of Mortgage-Oriented Banks, Finance and Economics Discussion Series 1997-7 (Board of Governearly 60 percent. In contrast, their shares of the nors of the Federal Reserve System, July 1997). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
720 Federal Reserve Bulletin • November 1999 9. Share of denials on applications for conventional home-purchase loans, grouped by selected characteristics of borrower and census tract and distributed by type of lender, 1993-98 Percent Subprime Manufactured-home 1993 1994 1995 1996 1997 1998 1993 1994 1995 1996 1997 1998 APPLICANT Income ratio (percentage of MSA median) Lower 1.5 1.7 1.8 3.7 2.9 10.4 24.6 39.5 55.8 56.7 62.3 62.4 Middle 1.5 2.2 2.6 3.8 4.6 13.3 12.8 25.5 43.2 44.3 48.7 48.3 Upper 1.5 2.9 3.7 4.1 6.0 15.9 3.7 9.2 19.2 19.4 21.3 22.7 Racial or ethnic identity American Indian or Alaskan Native .5 .5 .7 3.1 1.2 9.2 23.5 43.9 58.3 58.0 59.8 59.4 Asian or Pacific Islander . 1.5 2.8 3.1 3.3 4.6 15.9 2.6 6.4 14.8 12.5 11.3 13.2 Black 1.1 1.4 1.7 4.6 2.4 12.1 33.4 42.2 52.4 54.3 59.6 59.4 Hispanic 1.3 1.6 1.6 5.0 2.2 11.3 16.4 29.5 42.6 43.9 49.7 52.6 White .6 .9 1.0 2.7 1.7 8.6 26.4 37.3 46.5 48.3 51.0 53.9 CENSUS TRACT Income Lower 2.5 2.8 3.3 5.5 5.2 15.7 15.7 29.5 45.2 50.7 55.7 54.5 Middle 1.2 1.7 2.1 3.2 3.7 12.6 17.8 31.6 45.8 47.8 53.1 52.7 Upper 1.3 2.4 3.6 4.0 5.0 14.5 6.1 14.7 25.5 27.3 31.4 33.0 Racial or ethnic composition (minorities as percentage of population) Less than 10 1.0 1.6 2.2 3.0 3.9 11.7 15.2 27.7 41.0 42.3 46.0 47.9 10-49 1.6 2.3 2.7 3.9 3.9 13.5 14.2 27.6 42.4 46.1 52.1 50.8 50-100 2.8 3.4 4.3 6.6 6.6 20.3 9.6 21.9 37.7 42.9 49.4 47.2 All 1.1 1.4 1.6 3.6 2.8 11.6 24.4 35.3 45.3 47.6 50.5 52.1 indicated by recent trends, increasing denial rates mortgages they received, compared with an average (table 7). In fact, our analysis of HMDA data indi- of 17 percent for all lenders reporting under HMDA cates that the denial rate among prime lenders has (table 7). By 1998, their denial rate had increased to increased relatively little since 1993, and even this nearly 65 percent, compared with an overall denial small increase may be due primarily to their increased rate of 29 percent. participation in the subprime and manufactured-home The increase in the denial rate by manufacturedmarkets. home lenders has strongly influenced the overall The changing influence of different types of lend- trend in denial rates observed in the HMDA data ers in determining mortgage denial rates is illustrated because these lenders have received an increasing by decomposing the overall denial rate into the shares share of all applications. From 1993 to 1998 their attributable to each type of lender. In 1993, prime share of all conventional home-purchase mortgage lenders were responsible for about three-fourths of applications reported in the HMDA data rose about the overall denial rate (table 6). By 1998, however, Vh times, to about 25 percent, and their share of all the situation was nearly reversed, with prime lenders reported denials of such applications approximately accounting for only 36 percent of the overall denial doubled, to about 50 percent (tables 8 and 9). rate and subprime and manufactured-home lenders— The trends hold true across all household and with the latter being by far more important in this neighborhood groups, with the exception of Asian regard—accounting for 63 percent. At present, the applicants, and can be attributed in large measure to activity of these specialized lenders is largely deter- the increased shares of applications accounted for by mining the current level and change in denial rates. manufactured-home lenders and their high and rising denial rates. For example, between 1993 and 1998, the denial rate for black applicants rose from 34 per- Manufactured-Home Lenders cent to 54 percent overall and from 58 percent to 76 percent at manufactured-home lenders (table 7). Lenders specializing in manufactured-home mort- For white applicants, the rate of denial moved by gages are denying applications at a high and rising comparable proportions over the same period. rate. In 1993, these lenders denied about 44 percent Like the pattern nationally, part of the rise in denial of the applications for conventional home-purchase rates across all household and neighborhood groups Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Specialized Lenders and Lower-Income and Minority Homebuyers 721 9.—Continued manufactured-home lenders accounted for one-third of all denials for black applicants; by 1998, they Percent accounted for three-fifths. The change is more striking for lower-income applicants; the proportion of Prime CChhaarraacctteerriissttiicc denials accounted for by these lenders rose from 1993 1994 1995 1996 1997 1998 one-fourth to more than three-fifths. APPLICANT Income ratio (percentage of MSA median) Lower 73.9 58.8 42.4 39.6 34.8 27.2 Subprime Mortgage Lenders Middle 85.8 72.3 54.2 51.8 46.7 38.4 Upper 94.8 87.9 77.1 76.5 72.7 61.3 Racial or ethnic identity Lenders specializing in subprime mortgages also American Indian or have high and rising denial rates (although only about Alaskan Native 76.0 55.6 41.0 38.9 38.9 31.4 Asian or Pacific Islander . 95.9 90.8 82.1 84.2 84.1 70.9 half those of manufactured-home lenders). In addi- Black 65.5 56.4 45.9 41.1 38.0 28.5 Hispanic 82.3 68.9 55.7 51.1 48.1 36.1 tion, the share of all mortgage applications submitted White 73.0 61.8 52.5 49.0 47.3 37.5 to subprime lenders has increased. Thus, the increase CENSUS TRACT in denial rates by subprime lenders has had some Income Lower 81.8 67.6 51.5 43.8 39.1 29.8 influence on the overall trend in denial rates observed Middle 81.0 66.7 52.0 49.0 43.2 34.7 in the HMDA data, although the influence is much Upper 92.6 82.9 70.9 68.7 63.6 52.4 less than that of the manufactured-home lenders. Racial or ethnic composition (minorities Some of the patterns seen in the data for as percentage of population) manufactured-home lenders relative to prime Less than 10 83.8 70.7 56.8 54.7 50.1 40.4 lenders—an increasing share of all applications for 10-49 84.2 70.2 54.9 50.0 44.0 35.6 50-100 87.6 74.7 58.0 50.5 44.0 32.5 conventional home-purchase loans as well as an All 74.4 63.2 53.0 48.8 46.7 36.3 increasing share of all denials—is evident for subprime lenders. Their share of applications in the NOTE. Sum of percentages across lender types for a given characteristic in a given year equals 100. See also notes to table 1. HMDA data has only recently become important, moving from 1 percent in 1993 to 10 percent in 1998; likewise their share of denials in the HMDA data is accounted for by the increasing share of applica- moved from 1 percent to 12 percent over the period tions for conventional home-purchase mortgages (table 6). The rate at which subprime lenders denied made to manufactured-home lenders. In particular, applications also climbed markedly in the 1993-98 manufactured-home mortgages are of growing impor- period, from 23 percent to 33 percent, while the rate tance to black, Hispanic, and American Indian mort- for prime lenders rose at a comparatively mild pace, gage applicants (table 8). For example, in 1993, from 14 percent to 16 percent (table 7). In terms of 20 percent of all applications for home-purchase racial and ethnic groups, the denial rate for whites at mortgages from black applicants were made to manufactured-home and subprime lenders alike rose manufactured-home lenders; by 1998, the proportion sharply, whereas it moved only slightly at prime was 42 percent. For Hispanic applicants, the propor- lenders (table 7). tion changed even more sharply, rising from 8 per- One notable difference between manufacturedcent to 30 percent of all applications during the home lenders and subprime lenders is in the denial period. rate for black applicants. The rate throughout the Manufactured-home loans are also of growing 1993-98 period was much higher for manufacturedimportance to lower-income applicants, with 34 per- home lenders than it was for prime lenders; in concent applying to manufactured-home mortgage spe- trast, the rates for subprime and prime lenders each cialists in 1998, up from 11 percent in 1993. Upper- began the period at about the same level, rose about income households do not frequently apply for loans 10 percentage points, and ended at somewhat under from these lenders, although the percentage for this 40 percent (table 7). group also increased, from 1 percent to 5 percent, Another difference is that, unlike manufacturedover the period (table 8). home lenders, subprime lenders accounted for With a rising share of the applications and a char- roughly equal (albeit rising) shares of applications acteristically high denial rate, manufactured-home from each broad income group over the period. Thus, lenders are of increasing importance in the denial of in 1998, the subprime specialists' share of all lowermortgage credit, and the trend is reflected across all income applicants was fractionally larger than their ethnic, racial, and income groups (table 9). In 1993, share of upper-income applicants (11 percent versus Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
722 Federal Reserve Bulletin • November 1999 8 percent), whereas the manufactured-home lenders' Expansion in the geographic boundaries and numshare of lower-income applicants was about seven bers of MSAs, together with the growth in assets at times larger than their share of upper-income appli- institutions previously exempt from coverage, also cants (table 8). increased the number of institutions covered by The importance of subprime lenders on overall HMDA. But in recent years an important influence on denials is reflected across all ethnic, racial, and the number of institutions covered has been the mergincome groups (table 9). For example, subprime ing of organizations and the increase in the asset mortgage lenders accounted for 1 percent of all deni- exemption for reporters.27 For 1998, about 7,800 als of black applicants in 1993; by 1998, these lend- institutions reported on their lending activity, a ers accounted for 12 percent. decrease from the peak of 9,900 in 1994.28 The 1989 amendments to HMDA also greatly increased the information reported under the act. Instead of focusing solely on credit extensions, the CONCLUSION reporting was expanded to include applications and their disposition—that is, whether they were ap- We investigated the influence of lenders that specialproved, denied, withdrawn, or had their files closed ize in subprime and manufactured-home lending on for incompleteness. Reporting institutions also must the growth of conventional home-purchase mortgage now disclose information about the race or national lending and on one closely followed measure of origin, sex, and annual income of loan applicants and access to credit—denial rates for conventional homeborrowers. Further, for loans originated or purchased purchase loans. The data show that these lenders, during the year, institutions must report the loans although small in number, contributed significantly they sold, classified by type of purchaser. Finally, to the recent growth in conventional home-purchase they may, if they wish, report their reasons for denylending to lower-income and minority households ing loans. For 1998, about 25 million loans and and neighborhoods and that they accounted for much applications were covered by the act and reported by of the change in denial rates over the period from institutions. 1993 to 1998. In particular, the business of lending to finance manufactured homes, with its orientation toward lower-income and relatively less creditworthy APPENDIX B: IDENTIFYING SUBPRIME AND borrowers, plays a key role in understanding both the MANUFACTURED-HOME LENDERS increased availability of credit to lower-income borrowers and the recent rise in denial rates for conven- The HMDA data do not provide a direct method of tional home-purchase loans. identifying institutions that specialize in subprime or manufactured-home lending. Consequently, staff members of the U.S. Department of Housing and APPENDIX A: PROVISIONS OF HMDA Urban Development (HUD) each year use the data, along with several indirect methods, to compile a list Since the Home Mortgage Disclosure Act of 1975, of these lenders, primarily for regulatory purposes.29 depository institutions—commercial banks, savings First, and most important, a list of manufacturedassociations, and credit unions—with offices in met- home and subprime lenders is created from various ropolitan statistical areas (MSAs), along with their trade publications and industry sources. A second list mortgage lending subsidiaries, have been required to is created by scanning the HMDA data for lenders disclose to the public information about the geo- with high denial rates or with 90 percent or more of graphic location of the home-purchase and home- their activity in refinancings. Finally, a list of lenders improvement loans they originate or buy. Over time, amendments have added other types of 27. Until 1996, depository institutions with assets of $10 million or institution to the act's coverage. First, amendments less were exempt. For 1997, in response to amendments to HMDA, passed in 1988 extended coverage to savings and the threshold was raised to $28 million to account for the effects of loan service corporations and to the mortgage bank- inflation from 1976 to 1996. The minimum asset threshold was increased to $29 million in 1998 and remained at this level for 1999. ing subsidiaries of depository institution holding 28. For more detail, see the July 29, 1999, press release of the companies. Amendments passed in 1989 extended Federal Financial Institutions Examination Council. coverage to independent mortgage companies—for 29. The names and identification numbers of the home lenders compiled by HUD each year is in Randall M. Scheessele, 1998 the first time capturing lenders unaffiliated with HMDA Highlights, Housing Finance Working Papers (Department of depository institutions. Housing and Urban Development, October 1999). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Specialized Lenders and Lower-Income and Minority Homebuyers 723 B.l. Number of lenders and number of conventional home-purchase loans, grouped by year and distributed by type of lender, 1993-98 Subprime Manufactured-home Prime All Institutions Loans Institutions Loans Institutions Loans Institutions Loans 1993 21 15,594 6 103,752 9,627 2,251,842 9,654 2,371,188 1994 31 30,551 7 151,543 9,822 2,613,068 9,860 2,795,162 1995 39 31,677 7 204,430 9,503 2,500,021 9,549 2,736,128 1996 58 39,206 10 228,461 9,260 2,658,430 9,328 2,926,097 19971 122 78,737 10 243,463 7,795 2,715,166 7,927 3,037,366 19981 239 220,511 22 283,000 7,576 3,073,221 7,837 3,576,732 1. Many small institutions became exempt from HMDA reporting requirements because of an increase in the asset threshold for coverage under the law. with certain words in their names, for example, "con- the applications and loans reported by that lender in sumer," "discount," "finance," and "equity" are the HMDA data are counted in our analysis as being culled from the list of institutions covered by HMDA. of the institution's type. But many institutions in each The three lists are then merged. Institutions are type make loans characteristic of the other two types. dropped from this consolidated list if they also appear For example, banking organizations have recently on lists of lenders that specialize in FHA lending or expanded their operations by purchasing some of lenders that sell a large share of their loan origina- subprime and manufactured-home lenders. If the tions to Fannie Mae or Freddie Mac—activities not operations of the merged firms are then combined, characteristic of specialists in subprime and the subprime and manufactured-home lending of manufactured-home lending. these organizations will no longer be distinguishable At this point, lenders on the consolidated list are from their other home lending. called and asked whether their organizations engage Including entry and exit of firms during the in subprime and manufactured-home lending and 1993-98 period, about 350 institutions that report whether they specialize in these businesses. If they under HMDA have been identified in one or more say they are specialists, they are counted as such. If years as subprime or manufactured-home lenders they respond that they do not engage in the business, (table B.l). The number identified each year has they are counted as prime lenders. If they say they grown, however, in part because of expanded opporparticipate but do not specialize, they are asked to tunities in the relatively fluid subprime market, where estimate the percentage of their loans that are institutions tend to enter or exit the business as marsubprime or are for manufactured homes; if the per- ket conditions change. The number of manufacturedcentage is more than 50 percent, they are classified as home loan specialists, in contrast, is relatively small, specializing in that area. and the industry is highly concentrated. • Once an institution is classified as being either a prime, subprime, or manufactured-home lender, all of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
724 Industrial Production and Capacity Utilization for September 1999 Released for publication October 15 would have posted a small increase. At 135.0 percent of its 1992 average, industrial production in Septem- Industrial production, which had risen 1 percent over ber was 2.4 percent higher than in September 1998. July and August, declined 0.3 percent in September. For the third quarter as a whole, the total index Hurricane Floyd held down the production of elec- increased at an annual rate of 3.7 percent, about tricity, motor vehicles, and some other goods; exclud- the same pace as in the second quarter. The rate ing the effects of the hurricane, industrial production of capacity utilization for total industry declined Industrial production and capacity utilization Ratio scale, 1992 = 100 Percent of capacity Industrial production, market groups Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 — Consumer goods Y*- 145 145 135 135 — Durable / V^ » 125 125 115 115 105 105 Nondurable 95 95 1 V 1 1 1 1 I 1 1 1 Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 1990 1992 1994 1996 1998 1990 1992 1994 1996 1998 All series are seasonally adjusted. Latest series, September. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
725 Industrial production and capacity utilization, September 1999 Industrial production, index, 1992=100 Percentage change Category 1999 1999' Sept. 1998 to Juner Julyr Aug.r Sept. Juner July' Aug/ Sept. p Sept. 1999 Total 134.2 135.0 135.5 135.0 .6 .4 -.3 2.4 Previous estimate 134.2 135.2 135.6 .7 .3 Major market groups Products, total2 125.7 125.7 126.6 125.8 -.1 .0 .6 -.6 1.4 Consumer goods ... 116.2 115.9 116.8 116.1 .5 -.3 .8 -.6 1.2 Business equipment 171.0 172.1 173.9 172.9 -.3 .7 1.0 -.6 3.3 Construction supplies 131.4 132.7 132.4 132.1 -.5 1.0 -.2 -.2 4.1 Materials 148.1 150.3 150.2 150.3 .6 1.5 -.1 .1 4.1 Major industry groups Manufacturing 138.4 139.1 139.7 139.5 .0 .5 .5 -.2 3.2 Durable 165.6 167.4 168.4 167.6 .4 1.1 .6 -.5 5.0 Nondurable 111.3 111.0 111.3 111.5 -.4 -.3 .3 .2 .8 Mining 97.7 98.7 99.6 99.8 -.2 1.1 .9 .1 -2.6 Utilities 118.2 120.1 118.3 115.4 2.5 1.6 -1.5 -2.5 -4.0 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1998 1999 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, SSSeeepppttt... 111999999888 11996677--9988 11998822 11998888--8899 Sept. Juner Julyr Aug/ Sept.P tttooo SSSeeepppttt... 111999999999 Total 82.1 71.1 85.4 81.3 80.3 80.6 80.7 80.3 3.8 Previous estimate 80.3 80.7 80.8 Manufacturing 81.1 69.0 85.7 80.1 79.3 79.5 79.7 79.3 4.1 Advanced processing 80.5 70.4 84.2 79.5 78.3 78.4 78.6 78.2 4.9 Primary processing . 82.4 66.2 88.9 82.1 82.4 82.8 82.9 82.8 2.2 Mining 87.5 80.3 88.0 85.2 80.5 81.3 82.1 82.1 1.0 Utilities 87.4 75.9 92.6 95.0 93.0 94.4 93.0 90.7 .6 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. 0.4 percentage point, to 80.3 percent, in September in the production of energy products, which eased for but was little changed from the rates that had pre- a second month as the residential sales of electricity vailed in the first half of the year. and gas fell 2.4 percent. The production of business equipment, which had increased about 1.7 percent over July and August, fell MARKET GROUPS 0.6 percent. The decline was led by a drop of more than 3 percent in the output of transit equipment, The output of consumer goods fell back 0.6 percent, which has declined 9.5 percent over the past twelve reversing most of the August gain. The output of months because of substantial cutbacks in the producdurable consumer goods decreased 2.3 percent. The tion of commercial aircraft, ships, and related equipproduction of automotive products fell as a result of a ment. In September, the assembly of business trucks 9 percent drop in light truck assemblies, which have also slowed, and the output of industrial equipment fluctuated around a high level since June. The pro- eased. In contrast, the production of information production of other consumer durables eased for a sec- cessing equipment and other equipment advanced, ond month, with the output of household appliances with another strong gain in computing equipment. and room air conditioners falling sharply from an The production of defense and space equipment fell elevated level. The production of nondurable con- again; it has declined about 4 percent since Septemsumer goods flattened, after having increased 0.3 per- ber 1998. cent in August. The output of the non-energy compo- The production of construction supplies decreased nents of consumer nondurables advanced 0.2 percent. 0.2 percent for a second month but remained near the However, the increase was offset by another decline high level reached early in the year. The output of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
726 Federal Reserve Bulletin • November 1999 materials remained nearly flat for a second month. gas well drilling as well as an increase in metal The output of durable goods materials, which had mining about offset declines in the extraction of edged downward in August, increased 0.4 percent, crude oil and coal. supported by further strength in the production of semiconductors and computer parts. The output of nondurable goods materials advanced 0.3 percent, a REVISION OF INDUSTRIAL PRODUCTION AND rate in line with the modest gains of the preceding CAPACITY UTILIZATION two months, but the production of energy materials slumped 1.3 percent, primarily because of the decline In November the Federal Reserve will publish reviin the generation of electricity and secondarily sions to its measures of industrial production (IP), because of declines in the production of crude oil and capacity, capacity utilization, and industrial use of coal. electric power. The revisions will begin with 1992 and will incorporate updated source data for more recent years. INDUSTRY GROUPS This regular updating of source data for IP will include some annual data from the Bureau of the Manufacturing output edged down 0.2 percent in Census's 1997 Census of Manufactures and from September. Excluding the declines in motor vehicles, selected editions of its 1998 Current Industrial aircraft, and related parts, production in the rest of the Reports. Annual data from the U. S. Geological Surmanufacturing sector was essentially flat. The output vey on metallic and nonmetallic minerals (except of durables fell 0.5 percent, not only because of the fuels) for 1997 and 1998 will also be introduced. The 2 percent drop in the production of transportation updating will also include revisions to the monthly equipment but also because of widespread easing indicator for each industry (either physical product among durables industries. Exceptions were the data, production-worker hours, or electric power machinery and equipment industries, where the con- usage) and revised seasonal factors. In addition, the tinued gains in the high-tech sector boosted output. revision will introduce improved measures of produc- The production in nondurable manufacturing tion for selected series. advanced slowly for a second month, thereby mostly Capacity and capacity utilization will be revised to erasing the declines in June and July; within nondura- incorporate preliminary data from the 1998 Survey ble goods industries, the September gains were wide- of Plant Capacity of the Bureau of the Census. The spread, except for tobacco, apparel, and leather prod- statistics on the industrial use of electric power will ucts, which experienced further substantial weakness. incorporate additional information received from The factory operating rate declined to 79.3 percent, utilities for the past few years and may include some with the easing concentrated in durable goods indus- data from the 1997 Census of Manufactures. tries. With the drop in truck production, capacity Once the revision is published, it will also be made utilization for autos and light trucks fell 5.0 percent- available on the IP area of the Board's web site age points, to 89.5 percent. The rate for aerospace (http://www.federalreserve.gov/releases/gl7) and on and miscellaneous transportation equipment dropped diskettes from Publications Services (telephone 202- 3.1 percentage points during August and September, 452-3245). The revised data will also be available to 73.2 percent, a rate 9.4 percentage points below through the STAT-USA web site of the Department of that of September 1998. Commerce (http://www.stat-usa.gov). Further infor- The operating rate at electric utilities fell for a mation on these revisions is available from the second month, to 93.9 percent—still a relatively high Board's Industrial Output Section (telephone level. The operating rate for mining remained at 202-452-3197). • 82.1 percent. Another month of recovery in oil and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
727 Announcements ROGER W. FERGUSON, JR.: APPOINTMENT He formerly was an elected member of the Board AS VICE CHAIRMAN OF THE BOARD OF of Directors of the Harvard Alumni Association GOVERNORS OF THE FEDERAL RESERVE and Treasurer of the Friends of Education, a Trust- SYSTEM ees' Committee of The Museum of Modern Art, New York City. Roger W. Ferguson, Jr., took office October 5, Dr. Ferguson is married to Annette L. Nazareth, 1999, as Vice Chairman of the Board of Governors and they have two children. of the Federal Reserve System for a four-year term ending October 5, 2003. Dr. Ferguson originally APPOINTMENTS OF CHAIRMEN AND took office on November 5, 1997, as a member of DEPUTY CHAIRMEN OF THE the Board to fill an unexpired term ending Jan- FEDERAL RESERVE BANKS FOR 2000 uary 31, 2000. President Clinton announced his intention to nominate Dr. Ferguson to serve as Vice Chair- The Federal Reserve Board on September 20, 1999, man on August 6, 1999, and he was confirmed by the announced the appointment of chairmen and deputy Senate on September 29, 1999. (For the text of the chairmen of the boards of directors of the twelve White House release announcing the nomination, see Federal Reserve Banks for 2000. the October 1999 Federal Reserve Bulletin, Each Reserve Bank has a board of directors of nine page 670.) members. The Board of Governors in Washington Since July 1998, Dr. Ferguson has also served as appoints three of these directors and designates one Chairman of the Joint Year 2000 Council. The Counof its appointees as chairman and a second as deputy cil, supported by the Bank for International Settlechairman. Following are the names of the chairmen ments, was formed to address issues associated with and deputy chairmen appointed by the Board for the Year 2000 computer challenge within the global 2000: financial supervisory community. Dr. Ferguson was born October 28, 1951, in Boston Washington, D.C. He received a B.A. in economics William C. Brainard, Professor, Department of Economics, (magna cum laude) in 1973, a J.D. in law (cum laude) Yale University, New Haven, Conn., renamed Chairman. 1979, and a Ph.D. in economics in 1981, all from William O. Taylor, Chairman Emeritus, The Boston Globe, Harvard University. In 1973-74 Dr. Ferguson was Boston, Mass., renamed Deputy Chairman. Frank Knox Fellow at Pembroke College, Cambridge University. New York Peter G. Peterson, Chairman, The Blackstone Group, Before becoming a member of the Board, New York, N.Y., named Chairman. Dr. Ferguson was a Partner at McKinsey & Com- Deputy Chairman—To be announced. pany, Inc., an international management consulting firm. He was based in New York City, and he man- Philadelphia Joan Carter, President and Chief Operating Officer, UM aged a variety of studies for financial institutions Holdings Ltd., Haddonfield, N.J., renamed Chairman. from 1984 to 1997. Dr. Ferguson also served as Charisse R. Lillie, Partner, Ballard Spahr Andrews & Director of Research and Information Systems, Ingersoll, LLP, Philadelphia, Pa., renamed Deputy overseeing a staff of 400 research professionals and Chairman. managing the firm's investments in knowledge man- Cleveland agement technologies. David H. Hoag, Former Chairman, The LTV Corporation, In 1981-84 Dr. Ferguson was an attorney at the Cleveland, Ohio, named Chairman. New York City office of Davis Polk & Wardwell, Deputy Chairman—To be announced. where he worked with commercial banks, investment Richmond banks, and Fortune 500 corporations on syndicated Jeremiah J. Sheehan, Chairman and Chief Executive loans, public offerings, mergers and acquisitions, and Officer, Reynolds Metals Company, Richmond, Va., new product development. named Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
728 Federal Reserve Bulletin • November 1999 Richmond—Continued The Federal Reserve supports the creation of the Financial Wesley S. Williams, Jr., Partner, Covington & Burling, Services Information Sharing and Analysis Center in Washington, D.C., named Deputy Chairman. response to the President's directive to protect our nation's banking and financial services from the threat of physical Atlanta and cyber attacks. John F. Wieland, Chief Executive Officer and Chairman, The public and private sectors must work together to John Wieland Homes and Neighborhoods, Inc., counter this threat. The center will foster private-public Atlanta, Ga., renamed Chairman. cooperation by permitting the timely analysis of and reli- Paula Lovell, President, Lovell Communications, Inc., able exchange of information on computer attacks, threats, Nashville, Tenn., renamed Deputy Chairman. and security vulnerabilities. The creation of the center couldn't be coming at a more Chicago opportune time. It builds on the close cooperation between Arthur C. Martinez, Chairman and Chief Executive Officer, financial service providers and their regulators that has Sears, Roebuck and Co., Hoffman Estates, 111., named characterized the preparation for the rollover to the Chairman. Year 2000. By working on the century date change, we Robert J. Darnall, President and Chief Executive Officer, have a better understanding of the risks posed to mission- Ispat North America, Chicago, 111., named Deputy critical systems and the essential business processes that Chairman. rely on these systems. We've learned to develop plans for maintaining business continuity and exchanging informa- St. Louis tion if something goes wrong. This is exactly what we must Susan S. Elliott, Chairman and Chief Executive Officer, do to protect the financial infrastructure so vital to our Systems Service Enterprises, Inc., St. Louis, Mo., country's economic health from disruption by terrorists or renamed Chairman. criminals. Charles W. Mueller, Chairman, President, and Chief Executive Officer, Ameren Corporation, St. Louis, Mo., renamed Deputy Chairman. ISSUANCE OF EXAMINATION GUIDANCE ON Minneapolis CREDIT DISCIPLINE AT BANKS James J. Howard, Chairman, President, and Chief Executive Officer, Northern States Power Company, The Federal Reserve on September 28, 1999, issued Minneapolis, Minn., named Chairman. Ronald N. Zwieg, President, United Food & Commercial examination guidance cautioning against possible Workers, Local 653, Plymouth, Minn., named Deputy relaxation of credit discipline at banks. Although at Chairman. this time loan portfolios remain sound overall, indications of departures from proven sound lending Kansas City Jo Marie Dancik, Area Managing Partner, Ernst & Young practices—in particular, overreliance on optimistic LLP, Minneapolis, Minn, renamed Chairman. views of the borrowers' prospects and favorable eco- Terrence P. Dunn, President and Chief Executive Officer, nomic and financial conditions—have been a recur- J.E. Dunn Construction Company, Kansas City, Mo., ring theme emerging from recent supervisory reviews renamed Deputy Chairman. of bank credit quality. Dallas At the same time, over the past several quarters the Roger R. Hemminghaus, Chairman, Ultramar Diamond volume of weak or potentially weak loans—that is, Shamrock Corp., San Antonio, Tex., renamed those falling into the classified or special mention Chairman. categories used by supervisors—has risen at some H.B. Zachry, Jr., Chairman and Chief Executive Officer, H.B. Zachry Company, San Antonio, Tex., named institutions. Although the increases are generally Deputy Chairman. attributable to industry-specific or global economic developments, these increases are significant because San Francisco they have appeared despite the continued favorable Gary G. Michael, Chairman and Chief Executive Officer, Albertson's, Inc., Boise, Idaho, renamed Chairman. economic and financial climate in the United States. Nelson C. Rising, President and Chief Executive Officer, Supervisory reviews indicate that the vulnerability Catellus Development Corporation, San Francisco, of these loans was heightened in some cases by weak Calif., renamed Deputy Chairman. underwriting practices. The guidance, contained in a supervisory letter sent to Federal Reserve bank exam- STATEMENT BY VICE CHAIRMAN ROGER W. iners and supervisors as well as banking organiza- FERGUSON, JR., ON THE CREATION OF THE tions supervised by the Federal Reserve, describes FINANCIAL SERVICES INFORMATION SHARING three key areas in which some banks may have AND ANALYSIS CENTER strayed from historically sound lending practice: Vice Chairman Roger W. Ferguson, Jr., issued the • Approving loans based on a very optimistic following statement on October 1, 1999: assessment of a borrower's operating prospects or on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 729 the assumption that a borrower will always have tions, and credit unions (the Federal Reserve Board, ready access to financial markets the Federal Deposit Insurance Corporation, the • Failing to perform meaningful stress tests—or National Credit Union Administration, the Office of if performed, to take such tests adequately into the Comptroller of the Currency, and the Office of account—of a borrower's ability to withstand events Thrift Supervision) joined together to report to the such as unexpected shocks to operating revenue nation that insured financial institutions are prepared • Weakening internal controls critical to maintain- for the Year 2000 date change. ing the rigor and discipline of lending decisions. The agency officials said that 99.7 percent of the nation's insured institutions are now rated "While loan portfolios are currently sound at the satisfactory—the highest rating given for Y2K vast majority of banks, any trends toward laxity need readiness. The few institutions that are not yet rated to be reversed where they exist to ensure that the satisfactory are receiving very close regulatory attenbanking system remains strong and vibrant and tion, they added. retains the ability to lend to sound borrowers in good Appearing on September 16 at a press conference times and in bad," wrote Richard Spillenkothen, at the National Press Club to discuss financial indus- Director of the Federal Reserve's Division of Bank- try readiness were the following: John D. Hawke, Jr., ing Supervision and Regulation. Comptroller of the Currency; Donna Tanoue, Chair- The guidance instructs Federal Reserve examiners man of the Federal Deposit Insurance Corporation; and supervisors to be alert for indications that undue Edward W. Kelley, Jr., Member, Federal Reserve reliance on favorable assumptions about borrowers or Board; Ellen Seidman, Director, Office of Thrift the economy and financial markets more generally Supervision; and Norman E. D'Amours, Chairman, has led banks to reduce the rigor of their credit National Credit Union Administration. decisions or delay recognition of emerging loan The regulators stressed that they had closely evaluweakness. If examiners observe such undue reliance, ated the Y2K readiness of each insured financial delays in recognition of problem loans, or significant institution. weakening of internal risk-management processes, "We're not just taking their word for it," said they should carefully consider whether these develop- Mr. Hawke. "Federal examiners have conducted Y2K ments warrant a downgrade in one or more elements examinations in each insured financial institution at of the bank's overall supervisory rating for safety and least twice, and in some cases, three, four or more soundness. times. The largest banks have received continuous Supervisory letters are the Federal Reserve's pri- Y2K oversight." mary means of communicating key policy directives The results, Mr. Hawke said, show how effective to its examiners, supervisory staff, and the bank- the efforts of regulators and financial institutions ing industry. Supervisory letters can be viewed have been. "Right now, 99.7 percent of all federally on the Board's World Wide Web home page at supervised financial institutions have finished their www.federalreserve.gov/boarddocs/srletters/ renovations and tests of their systems—not just the systems that house their personal records and run their elevators, but the systems that bank customers MEETING OF THE CONSUMER ADVISORY rely upon for access to their funds." COUNCIL The remaining few, he said, "are receiving intensive, on-site supervision to ensure that they, too, will The Federal Reserve Board announced on Septemexperience no disruptions of the systems their cusber 28, 1999, that the Consumer Advisory Council tomers depend upon when the long anticipated day would hold its next meeting on Thursday, Octoarrives." ber 21. The council's function is to advise the Board Consumers can also rely upon the guarantees proon the exercise of its responsibilities under the Convided by the Federal Deposit Insurance Corporation sumer Credit Protection Act and on other matters on (FDIC), which oversees the insurance funds that back which the Board seeks its advice. deposits in banks and thrifts, and the National Credit Union Share Insurance Fund (NCUSIF), which pro- JOINT REPORT ON Y2K PROGRESS tects credit union depositors. "There are few guarantees in life, but the FDIC On September 16, 1999, with only 106 days remain- and NCUSIF offer one of them," said Ms. Tanoue. ing before the new century begins, leaders from the "No one has ever lost a cent in a federally insured five federal agencies that regulate banks, thrift institu- account. And no one will." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
730 Federal Reserve Bulletin • November 1999 Mr. Kelley explained the steps that the Federal addresses the agencies' supervisory approach to pos- Reserve has taken to ensure bank and thrift customers sible temporary balance sheet growth due to potential continuous access to their funds. Among them, the unusual market responses around the century date central bank has additional currency inventory, and change. it has created a special borrowing facility to ensure that banks and thrifts have access to funds if needed for their Y2K preparations. Joint Interagency Statement "We have stressed that we see no need for the September 28, 1999 public to hold additional cash," Mr. Kelley said. "We Introduction feel strongly that the most sensible thing to do with your money is to leave it where it is, but our respon- As part of their efforts to foster readiness for Year 2000, sibility is to make sure the public knows that cur- the Federal banking agencies have issued guidance to rency is readily available." banking organizations calling for the development of contingency plans to address funding, liquidity, and other Ms. Seidman said that consumers can take steps issues. In this regard, bank and thrift management are "to ensure that their own personal financial transition responsible for establishing realistic liquidity and funding into the new century is a smooth one," and to safe- plans and programs that are supported by the organizaguard themselves in the event there are minor tion's financial strength, capital position, and risk manageglitches. ment capabilities. Unusual market responses to the century date change Consumers should keep copies of financial records could lead to temporary balance sheet growth at some and balance their checkbooks regularly, the Office of banking organizations during the century date change Thrift Supervision Director said. They should keep period. This growth could occur if a banking organization up with news about Y2K, recognize scare stories for were to receive unusually large deposit inflows during the what they are, and separate fact from fiction. Con- period. Similarly, such temporary asset growth could occur if corporate borrowers make unusual draws on their existsumers should also be realistic and withdraw only as ing lines of credit, or request new lines, in response to a much money from their financial institution as they perceived need for extra liquidity during the century date would for any other holiday weekend. Ms. Seidman change period. Absent other factors, large deposit inflows also urged consumers to be wary of Y2K scams. or increases in extensions of credit would likely result in an increase in total assets. "Be skeptical and tell friends and relatives to be skeptical if someone asks for account information, credit card numbers, social security numbers or your Supervisory Approach to Temporary Balance Sheet Growth mother's maiden name," she said. "Be wary if promised that your money will be put into a Y2K safe All banking organizations are responsible for managing account or told that your personal information is prudently any temporary balance sheet growth that may needed to make Y2K adjustments. Simply put, it occur. As part of the Federal banking agencies' Year 2000 isn't." supervisory program, supervisors will assess the development and content of banking organizations' contingency Mr. D'Amours noted that most banks, thrifts, and plans, including those that address funding and liquidity credit unions are already using Y2K-ready systems needs. These plans should address possible effects on the successfully and that operating those systems before organization's balance sheet that may arise as a result of January 1 provides evidence of how compliant sys- unusually large deposit inflows and significantly increased tems will work after January 1. lending. It is likely that relatively few banking organizations will experience Year 2000-related asset growth that is "I want to tell you all where my money will be and significant in relation to their size, and any such asset where I've advised my mother to keep her money growth is expected to be temporary. Some organizations when the clock strikes midnight December 31,1999," that experience significant Year 2000-related asset growth the National Credit Union Administration Chairman may, despite prudent balance sheet management techsaid. "My money, and if she takes my advice, my niques, also experience a temporary decline in their regulatory capital ratios as a result of responding to customers' mother's money, will be where it is now, in our credit needs over the century date change period. Such a decline union, where it's safe and insured against loss by the has the potential to result in certain consequences for the U.S. Government." organization under statutes and regulations that the Federal banking agencies administer. If an organization believes such a situation could arise, management is urged to con- ISSUANCE OF A JOINT STATEMENT ON tact its primary supervisor to discuss options to address TEMPORARY BALANCE SHEET GROWTH these issues. In assessing supervisory options, the Federal banking agencies will consider whether the institution exer- The five federal banking agencies issued on Septem- cises prudent and responsible measures to manage its balance sheet, maintains a fundamentally sound financial conber 28, 1999, the following joint statement that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 731 dition, and provides evidence that any drop in capital ratios The Federal Reserve Board on October 1, 1999, is temporary. announced the issuance of a consent order against Any questions on this issue should be directed to the William Carmichael, an institution-affiliated party of banking organization's primary supervisor. the First Western Bank, Cooper City, Florida, a state member bank. JOINT ISSUANCE OF HOST STATE The individual, without admitting to any allega- LOAN-TO-DEPOSIT RATIOS FOR DETERMINING tions, consented to the order to resolve allegations COMPLIANCE WITH THE INTERSTATE ACT that he violated the Change in Bank Control Act in connection with his acquisition of beneficial owner- The Federal Reserve Board, the Office of the Comp- ship of the shares of the bank. troller of the Currency, and the Federal Deposit Insurance Corporation on September 3, 1999, issued the The Federal Reserve Board on October 1, 1999, host state loan-to-deposit ratios that the banking announced the issuance of a consent order against agencies will use to determine compliance with sec- Richard Edwards, Vivian Edwards, and Jeremy tion 109 of the Riegle-Neal Interstate Banking and Edwards, all institution-affiliated parties of the First Branching Efficiency Act of 1994 (Interstate Act). Western Bank, Cooper City, Florida, a state member These ratios update data released on August 13, bank. 1998. The individuals, without admitting to any allega- Section 109 prohibits any bank from establishing tions, consented to the order to resolve allegations or acquiring a branch or branches outside its home that they violated the Change in Bank Control Act in state under the Interstate Act primarily for the pur- connection with their acquisition of beneficial ownerpose of deposit production and provides a two- ship of the shares of the bank. step process to test compliance with the statutory requirements. The Federal Reserve Board on October 1, 1999, The first step involves a loan-to-deposit ratio announced the issuance of a consent order against screen that compares a bank's statewide loan-to- Grant Marant, an institution-affiliated party of the deposit ratio to the host state loan-to-deposit ratio for First Western Bank, Cooper City, Florida, a state banks in a particular state. The second step requires member bank. the banking agencies to determine if the bank is The individual, without admitting to any allegareasonably helping to meet the credit needs of the tions, consented to the order to resolve allegations communities served by the bank's interstate branches. that he violated the Change in Bank Control Act in A bank that fails both steps is in violation of secconnection with his acquisition of beneficial ownertion 109 and is subject to sanctions by the banking ship of the shares of the bank. agencies. The Federal Reserve Board on October 1, 1999, announced the issuance of a consent order against ENFORCEMENT ACTIONS Linda Marant, an institution-affiliated party of the First Western Bank, Cooper City, Florida, a state The Federal Reserve Board on September 8, 1999, member bank. announced the execution of a written agreement by The individual, without admitting to any allegaand among First Security Bancshares, Inc., Lake tions, consented to the order to resolve allegations Park, Iowa; the Security State Bank, Milford, Iowa; that she violated the Change in Bank Control Act in and the Federal Reserve Bank of Chicago. connection with her acquisition of beneficial ownership of the shares of the bank. The Federal Reserve Board on October 1, 1999, announced the issuance of a consent order against William Barber, an institution-affiliated party of the The Federal Reserve Board on October 1, 1999, First Western Bank, Cooper City, Florida, a state announced the issuance of a consent order against member bank. David Nieminen and Gay Lynn Nieminen, both The individual, without admitting to any allega- institution-affiliated parties of the First Western Bank, tions, consented to the order to resolve allegations Cooper City, Florida, a state member bank. that he violated the Change in Bank Control Act in The individuals, without admitting to any allegaconnection with his acquisition of beneficial owner- tions, consented to the order to resolve allegations ship of the shares of the bank. that they violated the Change in Bank Control Act in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
732 Federal Reserve Bulletin • November 1999 connection with their acquisition of beneficial owner- into formal existence on July 1, 1998; in fact the date ship of the shares of the bank. was June 1, 1998. On page 657 in table 3, the third item in the last column states that the rotation of four The Federal Reserve Board on October 1, 1999, of the remaining eleven regional Federal Reserve announced the issuance of a consent order against Bank presidents is on a two-year basis; in fact, the James Rouse and Jenene Rouse, both institution- rotation is on a one-year basis. On page 663, the text affiliated parties of the First Western Bank, Cooper states that in the first quarter of 1999, the TARGET City, Florida, a state member bank. system processed a daily average of more than The individuals, without admitting to any allega- 150,000 transactions valued at 966 billion euros tions, consented to the order to resolve allegations ($863 billion); in fact, the dollar value was that they violated the Change in Bank Control Act in $1,081 billion. Also on page 663, the text of note 14 connection with their acquisition of beneficial owner- states that alternative payment systems run frequent ship of the shares of the bank. batch settlements throughout the day; these systems actually run net settlements. The Federal Reserve Board on October 1, 1999, The version of the article on the Board's public announced the issuance of a consent order against web site (http://www.federalreserve.gov) incorpo- H. Burns Warfield, an institution-affiliated party of rates these corrections. the First Western Bank, Cooper City, Florida, a state member bank. The individual, without admitting to any allega- CHANGE IN BOARD STAFF tions, consented to the order to resolve allegations that he violated the Change in Bank Control Act in The Board of Governors announced that Lewis S. connection with his acquisition of beneficial owner- Alexander, Deputy Director, Division of International ship of the shares of the bank. Finance, resigned in October 1999. • ERRATA: FEDERAL RESERVE BULLETIN ARTICLE "The Launch of the Euro" in the October 1999 Bulletin contains the following errors. On page 656, the text states that the European Central Bank came Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
733 Legal Developments FINAL RULE—AMENDMENT TO REGULATION D 2. Section 204.9 is revised to read as follows: The Board of Governors is amending 12 C.F.R. Part 204, Section 204.9—Reserve requirement ratios. its Regulation D (Reserve Requirements of Depository Institutions), to reflect the annual indexing of the low (a) Reserve percentages. The following reserve ratios are reserve tranche and the reserve requirement exemption for prescribed for all depository institutions, Edge and 2000, and announces the annual indexing of the deposit Agreement corporations, and United States branches reporting cutoff levels that will be effective beginning in and agencies of foreign banks: September 2000. The amendments decrease the amount of transaction accounts subject to a reserve requirement ratio of three percent in 2000, as required by section 19(b)(2)(C) of the Federal Reserve Act, from $46.5 million to $44.3 Category Reserve requirement1 million of net transaction accounts. This adjustment is known as the low reserve tranche adjustment. The Board is Net transaction accounts: $0 to $44.3 million 3 percent of amount. increasing from $4.9 million to $5.0 million the amount of Over $44.3 million $1,329,000 plus 10 percent of reservable liabilities of each depository institution that is amount over $44.3 million subject to a reserve requirement of zero percent in 2000. This action is required by section 19(b)(ll)(B) of the Nonpersonal time deposits 0 percent. Federal Reserve Act, and the adjustment is known as the Eurocurrency liabilities 0 percent. reservable liabilities exemption adjustment. The Board is 1. Before deducting the adjustment to be made by the paragraph (b) of this also increasing the deposit cutoff levels that are used in section. conjunction with the reservable liabilities exemption to determine the frequency of deposit reporting from $81.9 million to $84.5 million for nonexempt depository institu- (b) Exemption from reserve requirements. Each depository tions and from $52.6 million to $54.3 million for exempt institution, Edge or agreement corporation, and U.S. institutions. (Nonexempt institutions are those with total branch or agency of a foreign bank is subject to a zero reservable liabilities exceeding the amount exempted from percent reserve requirement on an amount of its transreserve requirements ($5.0 million) while exempt instituaction accounts subject to the low reserve tranche tions are those with total reservable liabilities not exceedin paragraph (a) of this section not in excess of ing the amount exempted from reserve requirements.) $5.0 million determined in accordance with section Thus, beginning in September 2000, nonexempt institu- 204.3(a)(3). tions with total deposits of $84.5 million or more will be required to report weekly while nonexempt institutions with total deposits less than $84.5 million may report quarterly, in both cases on form FR 2900. Similarly, ex- ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT empt institutions with total deposits of $54.3 million or more will be required to report quarterly on form FR 2910q Orders Issued Under Section 3 of the Bank Holding while exempt institutions with total deposits less than Company Act $54.3 million may report annually on form FR 2910a. Effective November 3, 1999, 12 C.F.R. Part 204 is Canadian Imperial Bank of Commerce amended as follows: Toronto, Canada Part 204—Reserve Requirements of Depository The CIBC World Markets Corporation Institutions (Regulation D) Toronto, Canada 1. The authority citation for Part 204 continues to read as CIBC World Markets Inc. follows: Toronto, Canada Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, CIBC Delaware Holdings Inc. and 3105. New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
734 Federal Reserve Bulletin • November 1999 Order Approving Formation of Bank Holding Companies in any relevant banking market and that competitive conand Acquisition of a Bank siderations are consistent with approval.4 Canadian Imperial Bank of Commerce ("CIBC"), The Financial, Managerial, and Supervisory Considerations CIBC World Markets Corporation ("World Markets Corp."), and CIBC World Markets Inc. ("World Markets The BHC Act requires the Board to consider the financial Inc."), all of Toronto, Canada, and CIBC Delaware Hold- and managerial resources and future prospects of the comings Inc., New York, New York ("Holdings") (collective- panies and banks involved in the proposal and certain ly, "Applicants"), have requested the Board's approval supervisory factors. The Board has reviewed information under section 3(a)(1) of the Bank Holding Company Act provided by CIBC, confidential supervisory and examina- ("BHC Act") (12 U.S.C. § 1842(a)(1)) to become bank tion information, and publicly reported financial and other holding companies by acquiring control of all the voting information in assessing the financial and managerial shares of CIBC National Bank, Maitland, Florida "Bank"), strength of CIBC and its subsidiaries. CIBC's capital ratios a de novo national bank that would deliver banking prod- exceed the minimum levels that would be required under ucts to its customers solely through a variety of electronic the Basle Capital Accord and are considered equivalent to delivery channels.1 Holdings would be the direct parent of the capital that would be required of a U.S. banking organi- Bank. zation. The Board has reviewed the relevant factors in light Notice of the applications, affording interested persons of these and all other facts of record, and concludes that the an opportunity to comment, has been published (64 Fed- financial and managerial resources and future prospects of eral Register 40,006 (1999)). The time for filing comments Applicants and Bank are consistent with approval, as are has expired, and the Board has considered the applications the other supervisory factors the Board must consider and all comments received in light of the factors set forth under section 3 of the BHC Act. in section 3 of the BHC Act. In addition, under section 3 of the BHC Act, the Board CIBC, with consolidated assets of $185 billion, is the may not approve an application involving a foreign bank largest banking organization headquartered in Canada.2 unless the bank is "subject to comprehensive supervision CIBC operates a state-licensed branch in Chicago, Illinois; or regulation on a consolidated basis by the appropriate agencies in New York, New York; Atlanta, Georgia; and authorities in the bank's home country."5 In this case, the Los Angeles and San Francisco, California; and a represen- Board notes that the home country supervisor of CIBC is tative office in Houston, Texas. CIBC also engages in a the Office of the Superintendent of Financial Institutions broad range of permissible nonbanking activities in the ("OSFI"). The Board previously has determined that sev- United States through subsidiaries, including a subsidiary eral other Canadian banks were subject to comprehensive engaged in underwriting and dealing in, to a limited extent, consolidated supervision by the OSFI.6 The Board finds debt and equity securities. that CIBC is supervised by the OSFI in substantially the same manner as those other banks. Based on this finding Competitive Considerations and all the facts of record, the Board concludes that CIBC is subject to comprehensive supervision on a consolidated The Board previously has noted that the establishment of a basis by its home country supervisor. de novo bank enhances competition in the relevant banking The BHC Act also requires the Board to determine that market and is a positive consideration in an application the foreign bank has provided adequate assurances that it under section 3 of the BHC Act.3 There is no evidence in will make available to the Board such information on its this case that this transaction would lessen competition or operations and activities and those of its affiliates that the create or further a monopoly in any relevant market. Accordingly, the Board concludes that consummation of the proposal would not have a significantly adverse effect on 4. After consummation of the proposal, Florida would be the home competition or on the concentration of banking resources state of Applicants and Bank for purposes of the BHC Act and, accordingly, the proposed transaction it not barred by section 3(d) of the BHC Act. See 12 U.S.C. §§ 1841(o)(4), 1842(d). New York will remain the home state of CIBC for purposes of the International Banking Act ("IBA") (12 U.S.C. § 3101 et seq.) and Regulation K. 5. 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the Board determines whether a foreign bank is subject to consolidated 1. The Office of the Comptroller of the Currency ("OCC") granted home country supervision under the standards set forth in Regula- Bank a preliminary charter approval on July 9, 1999. See OCC tion K. See 12 C.F.R. 225.13(a)(4). Regulation K provides that a Conditional Approval #313 (July 9, 1999). Holdings is 17 percent foreign bank will be considered to be subject to comprehensive owned by CIBC and 83 percent owned by World Markets Inc., supervision or regulation on a consolidated basis if the Board deter- CIBC's Canadian broker-dealer subsidiary, which is in turn wholly mines that the bank is supervised and regulated in such a manner that owned by World Markets Corp., a holding company wholly owned by its home country supervisor receives sufficient information on the CIBC. worldwide operations of the bank, including its relationship to any 2. Asset data are as of April 30, 1999, and use exchange rates then affiliates, to assess the bank's overall financial condition and its in effect, and ranking data are as of October 31, 1998. compliance with law and regulation. See 12 C.F.R. 211.24(c)(1). 3. See Wilson Bank Holding Company, 82 Federal Reserve Bulletin 6. See, e.g., Royal Bank of Canada, 83 Federal Reserve Bulletin 442 568 (1996). (1997); Bank of Montreal, 80 Federal Reserve Bulletin 925 (1994). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 735 Board deems appropriate to determine and enforce compli- would be staffed up to 14 hours a day by Bank customer ance with the BHC Act.7 The Board has reviewed the service representatives to facilitate certain customer transrestrictions on disclosure in jurisdictions where CIBC has actions. Service representatives would not be able to accept material operations and has communicated with relevant deposits, approve loans, negotiate interest rates, or othergovernment authorities concerning access to information. wise commit Bank to any banking transaction or activity. CIBC has committed that it will make available to the Bank customers, whether at a pavilion or elsewhere, could Board such information on the operations of CIBC and any use Bank's call center or Internet site to review account of its affiliates that the Board deems necessary to determine information, transfer funds, and pay certain bills. However, and enforce compliance with the BHC Act, the IBA, and customers who wish to open an account, make a deposit, or other applicable federal law. CIBC also has committed to apply for a loan would have to do so in person at a cooperate with the Board to obtain any waivers or exemp- pavilion.10 tions that may be necessary to enable CIBC to make such Bank has defined its initial assessment area for CRA information available to the Board. In light of these com- purposes to be the Orlando, Florida, Metropolitan Statistimitments and other facts of record, the Board has con- cal Area ("MSA"). This is consistent with Bank's excluded that CIBC has provided adequate assurances of pressed intention to begin operations with several pavilions access to any appropriate information the Board may re- in the Orlando MSA.11 CIBC has indicated that among quest. Bank's initial product offerings would be no-fee checking accounts and unsecured consumer loans, and Bank would Convenience and Needs Considerations also offer access to home mortgages through a link to third-party bank. CIBC states that Bank has already con- The Board also has carefully considered the effect of the tacted a number of local government and community proposal on the convenience and needs of the communities groups in the Orlando area to help Bank identify the credit to be served in light of all the facts of record, including a and other banking needs of the community. Bank intends to comment received from one individual ("Commenter") work closely with such groups, in Orlando and in other concerning the proper application of the Community Rein- communities where Bank establishes pavilions. CIBC has vestment Act (12 U.S.C. § 2901 et seq.) ("CRA") to Bank. also hired a CRA specialist and a Chief Risk Officer for As part of this review, the Board has carefully considered Bank, each of whom has significant CRA experience. Bank's cooperation with the OCC in the development of CIBC is a large banking organization with a satisfactory Bank's community reinvestment program and the record of record of complying with U.S. banking regulations and performance under the CRA of Canadian Imperial Bank of substantial financial and managerial resources that are suf- Commerce (New York) ("CIBC(NY)"), a New York state ficient to ensure compliance by Bank with all relevant bank subsidiary of CIBC that was operated by CIBC from regulatory requirements.12 CIBC's record of operating in 1951 until it was voluntarily dissolved in 1996.8 In addition, CIBC operated Canadian Imperial Bank of Commerce California, a California state bank, from 1929 until 10. The assistance of a Bank service representative would be it was voluntarily dissolved in 1991. required to open an account or apply for a loan. Deposits could be Commenter expressed concerns about the proposed busi- made only through the ATMs at the pavilions. ness plan of Bank, under which it would deliver banking 11. Commenter expressed the view that the Orlando MSA alone might be an inappropriate assessment area for Bank, particularly if products and services to its customers through a combina- Bank operates nationally through the Internet. Although Bank would tion of telephone, Internet, and automatic teller machine use computer technology and facilitate Internet access by its custom- ("ATM") services. Bank would maintain pavilions at cer- ers, Bank proposes at this time to focus its operations on the areas tain supermarkets in Florida and would operate at those served by supermarket pavilions. For example, customers would be locations under the name "Marketplace Bank."9 Bank's able to open accounts, apply for loans, or make deposits at Bank only through one of Bank's pavilions. On this basis, it is consistent with the business plan is modeled on banking services currently regulations implementing the CRA for Bank to define its assessment offered by CIBC in Canada in association with a major area based on the location of its pavilions with deposit-taking ATMs. Canadian supermarket chain. The pavilions would include See 12 C.F.R. 25.41(c)(2) ("The assessment area(s) for a bank . .. deposit-taking ATMs, telephones connected to Bank's call must ... [ijnclude the geographies in which the bank has ... its deposit-taking ATMs.") See also 12 C.F.R. 228.41(c)(2). center, and computers with dedicated access to Bank's Commenter questions whether Bank's pavilions should be consid- Internet site. The pavilions would be available to Bank's ered branches. In granting preliminary approval for Bank's charter, customers whenever the host supermarket was open, and the OCC considered this issue and determined that under the facts of this proposal the pavilions are not branches. As Bank's primary federal supervisor, the OCC's decision is accorded great weight by the 7. See 12 U.S.C. § 1842(c)(3)(A). Board, and nothing in the record indicates that it was not based on all 8. The performance of CIBC(NY) under the CRA was last reviewed relevant facts or is otherwise incorrect. Moreover, in the event that the by the FDIC on March 14, 1994, and rated "outstanding." Since the pavilions were determined to be branches, they would be at locations dissolution of CIBC(NY), none of the operations of CIBC or its where it would be permissible for Bank to maintain branches. subsidiaries have been subject to the CRA. 12. Commenter also raised a number of other matters, including 9. Commenter also referred to the recent settlement of a lawsuit rumors that the supermarket chain that would host Bank's pavilions alleging racial and sexual discrimination against the supermarket may be sold, CIBC's mortgage-related activities in the United States, chain that would host Bank's pavilions. That supermarket chain is not and concerns over CIBC's standards for purchasing mortgage-backed an entity within the Board's jurisdiction. securities, that are unrelated to this proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
736 Federal Reserve Bulletin • November 1999 the United States, including its past record of performance Company Act (the "BHC Act"), has requested the Board's under the CRA, and its dealings with federal banking approval under section 4(c)(8) of the BHC Act (12 U.S.C. supervisors indicate that CIBC may be relied on to imple- § 1843(c)(8)) and section 225.24 of the Board's Regulament fully the programs and policies it has committed to tion Y (12 C.F.R. 225.24) to acquire through its subsidiary, implement. the CIT Group, Inc., Livingston, New Jersey ("CIT"), all The Board has carefully considered the entire record in the outstanding voting shares of Newcourt Credit Group, its review of the convenience and needs factor under Inc., Toronto, Canada ("Newcourt"), and thereby engage section 3 of the BHC Act, including information provided in the following activities: by Commenter and CIBC. Based on all the facts of record (1) extending credit and servicing loans and activities and for the reasons discussed above, the Board concludes related to extending credit pursuant to section that, on balance, considerations relating to the convenience 225.28(b)(1) and (b)(2) of Regulation Y (12 C.F.R. and needs factor are consistent with approval of the pro- 225.28(b)(1) & (b)(2)); posal. (2) leasing personal or real property or acting as agent, broker, or adviser in leasing such property pursuant Conclusion to section 225.28(b)(3) of Regulation Y (12 C.F.R. 225.28(b)(3)); Based on the foregoing, and in light of all the facts of (3) providing financial and investment advisory serrecord, the Board has determined that the application vices pursuant to section 225.28(b)(6) of Regulashould be, and hereby is, approved. Should any restrictions tion Y (12 C.F.R. 225.28(b)(6)); on access to information on the operations or activities of (4) providing agency transactional services for cus- CIBC and its affiliates subsequently interfere with the tomer investments pursuant to section 225.28(b)(7) Board's ability to obtain information to determine and of Regulation Y (12 C.F.R. 225.28(b)(7)); and enforce compliance by CIBC or its affiliates with applica- (5) providing data processing and data transmission ble federal statutes, the Board may require termination of services pursuant to section 225.28(b)(14) of Reguany of CIBC's direct or indirect activities in the United lation Y (12 C.F.R. 225.28(b)(14)). States. The Board's approval is specifically conditioned on compliance by Applicants with all the commitments made Notice of the proposal, affording interested persons an in connection with the application. For the purpose of this opportunity to submit comments, has been published action, the commitments relied on by the Board in reaching (64 Federal Register 49,015 (1999)). The time for filing its decision are deemed to be conditions imposed in writing comments has expired, and the Board has considered the by the Board in connection with its findings and decision notice and all comments received in light of the factors set and, as such, may be enforced in proceedings under appliforth in section 4(c)(8) of the BHC Act. cable law. DKB, with total consolidated assets of approximately The transaction shall not be consummated before the $461 billion, is the second largest banking organization in fifteenth calendar day following the effective date of this Japan and the twelfth largest banking organization in the order, or later than three months following the effective world.1 In the United States, DKB owns and operates date of this order, unless such periods are extended for Dai-Ichi Kangyo Bank of California, a state-chartered bank good cause by the Board or the Federal Reserve Bank of with assets of $751 million, and Dai-Ichi Kangyo Trust New York, acting pursuant to delegated authority. Company of New York.2 DKB also has branches in New By order of the Board of Governors, effective Septem- York, New York and Chicago, Illinois and an agency in ber 20, 1999. Los Angeles, California. The Board previously has determined by regulation that Voting for this action: Chairman Greenspan and Governors Kelley, extending credit, engaging in activities related to extending Ferguson, and Gramlich. Absent and not voting: Governor Meyer. credit, and leasing; and that providing financial and investment advisory, agency transactional, and data processing ROBERT DEV. FRIERSON services are closely related to banking and permissible for Associate Secretary of the Board bank holding companies under section 4(c)(8) of the BHC Act. Notificant has committed that it will conduct these Orders Issued Under Section 4 of the Bank Holding activities in accordance with the limitations set forth in Company Act Regulation Y and the Board's orders and interpretations relating to each of these activities.3 The Dai-Ichi Kangyo Bank, Limited Tokyo, Japan 1. Asset data are as of March 31, 1999, unless otherwise indicated. Order Approving Notice to Engage in Nonbanking Foreign ranking data are as of December 31, 1998, adjusted through Activities August 1999 for significant mergers and acquisitions. 2. Asset data for the DKB subsidiary bank is as of June 30, 1999. 3. Newcourt also engages in certain leasing activities and holds The Dai-Ichi Kangyo Bank, Limited ("DKB"), a bank certain investments in nonbanking companies that are not permissible holding company within the meaning of the Bank Holding for a bank holding company under section 4 of the BHC Act. DKB Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 737 In order to approve the proposal, the Board also must customers and would allow DKB to provide existing and determine that performance of the proposed activities is a new customers with a broader range of products and serproper incident to banking, that is, that the performance of vices at lower costs. The Board also expects that combinthe proposed activities by DKB "can reasonably be ex- ing the expertise of CIT and Newcourt would allow CIT to pected to produce benefits to the public . . . that outweigh be a more effective competitor in the asset-based financing possible adverse effects, such as undue concentration of industry. In addition, there are public benefits to be derived resources, decreased or unfair competition, conflicts from permitting capital markets to operate so that bank of interests, or unsound banking practices." 12 U.S.C. holding companies can make potentially profitable invest- § 1843(c)(8). ments in nonbanking companies and from permitting bank- As part of its evaluation of these factors, the Board ing organizations to allocate their resources in the manner considers the financial and managerial resources of the they consider to be most efficient when such investments notificant and the effect of the transaction on those resourc- are consistent, as in this case, with the relevant consideres.4 In this case, the acquisition of Newcourt would be ations under the BHC Act. made and funded by CIT and, therefore, would not require Based on the foregoing and all the other facts of record, additional financial or managerial resources from DKB. including the commitments made by DKB, the Board has The proposed transaction would not represent a significant determined that the performance of the proposed activities expansion of DKB's U.S. operations but only a further by DKB can reasonably be expected to produce benefits to development of existing business lines through CIT, which the public that would outweigh any possible adverse effects has a record of successfully managing similar activities. under the proper incident to banking standard of section The most recently reported capital ratios of DKB exceed 4(c)(8) of the BHC Act. the relevant risk-based capital standards established under the Basle Accord, and the proposed transaction is not expected to have a material effect on the capital of the Conclusion consolidated organization. The Board has also considered recent financial statements, including pro forma financial statements and other available information, and the condi- Based on all the facts of record, including all the committion of the U.S. operations of DKB. Based on these and ments and representations made by the notificant, and other facts of record, including information regarding subject to all the terms and conditions set forth in this CIT's financial condition and managerial resources and order, the Board has determined that the notice should be, relevant supervisory information, the Board has deterand hereby is, approved. This determination is subject to mined that financial and managerial considerations are all the conditions set forth in the Board's Regulation Y, consistent with approval. including those in sections 225.7 and 225.25(c) (12 C.F.R. The Board also has carefully considered the competitive 225.7 and 225.25(c)), and to the Board's authority to effects of the proposed acquisition of Newcourt. DKB require modification or termination of the activities of a currently engages in most of the activities that Newcourt bank holding company or any of its subsidiaries as the conducts. The Board notes that many of the markets for Board finds necessary to ensure compliance with, or to lending and leasing and other specialty financial services in prevent evasion of, the provisions and purposes of the which CIT and Newcourt compete are regional or national BHC Act and the Board's regulations and orders issued in scope. These markets are unconcentrated with numerous thereunder. The Board's decision is specifically condibank and nonbank providers. In addition, barriers to entry tioned on compliance with all the commitments made in into markets for lending and leasing are low. There is also the notice, including the commitments and conditions disa high level of competition in the markets for the financial cussed in this order. The commitments and conditions advisory and agency transactional services that Newcourt relied on in reaching this decision shall be deemed to be provides through its subsidiaries. Consummation of the conditions imposed in writing by the Board in connection proposal would have a limited effect on competition, and with its findings and decision and, as such, may be enthe Board has determined that the proposal would not have forced in proceedings under applicable law. a significantly adverse effect on competition in any rele- This proposal shall not be consummated later than three vant market. months after the effective date of this order, unless such The Board expects that the proposed transaction would period is extended for good cause by the Board or the give DKB an increased ability to serve the needs of its Federal Reserve Bank of San Francisco, acting pursuant to delegated authority. By order of the Board of Governors, effective September 27, 1999. has committed that it will conform the leasing activities of Newcourt to the requirements of section 4 of the BHC Act and will restructure Voting for this action: Chairman Greenspan and Governors Kelley, any impermissible investments to comply with the BHC Act within Meyer, Ferguson, and Gramlich. two years of consummation of the proposal. 4. See 12 C.F.R. 225.26; The Fuji Bank, Limited, 75 Federal ROBERT DEV. FRIERSON Reserve Bulletin 94 (1989); Bayerishe Vereinbank AG, 73 Federal Reserve Bulletin 155 (1987). Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
738 Federal Reserve Bulletin • November 1999 Orders Issued Under Sections 3 and 4 of the Bank and engages in a number of permissible nonbanking activi- Holding Company Act ties nationwide. After consummation of the proposal, Firstar would be- Firstar Corporation come the 15th largest commercial banking organization in Milwaukee, Wisconsin the United States, with consolidated assets of approximately $74.5 billion. Firstar would operate subsidiary Order Approving the Merger of Bank Holding banks in twelve states. Companies Interstate Analysis Firstar Corporation ("Firstar"), a bank holding company within the meaning of the Bank Holding Company Act Section 3(d) of the BHC Act allows the Board to approve ("BHC Act"), has requested the Board's approval under an application by a bank holding company to acquire section 3 of the BHC Act (12 U.S.C. § 1842) to merge control of a bank located in a state other than the home with Mercantile Bancorporation Inc. ("Mercantile"), and state of such bank holding company if certain conditions thereby acquire Mercantile's wholly owned registered bank are met.5 For purposes of the BHC Act, the home state of holding company, Ameribanc, Inc. ("Ameribanc"), its lead Firstar is Wisconsin, and Firstar proposes to acquire banks subsidiary bank, Mercantile Bank National Association, all that are located in Arkansas, Illinois, Iowa, Kansas, Kenin St. Louis, Missouri, and Mercantile's other subsidiary tucky, and Missouri.6 banks.1 Firstar also has requested the Board's approval Section 3(d) of the BHC Act provides that the Board under section 4(c)(8) of the BHC Act (12 U.S.C. may not approve a proposal if, on consummation of the § 1843(c)(8)) and section 225.24 of the Board's Regulation proposal, the applicant would control 30 percent or more of Y (12 C.F.R. 225.24) to acquire the nonbanking subsidiar- the total deposits of insured depository institutions in any ies of Mercantile.2 state in which both the applicant and the organization to be Notice of the proposal, affording interested persons an acquired operate an insured depository institution, or such opportunity to submit comments, has been published (64 higher or lower percentage established by state law.7 Firstar Federal Register 32,497 and 38,909 (1999)). The time for and Mercantile both operate insured depository institutions filing comments has expired, and the Board has considered in Illinois, Kentucky, and Iowa. On consummation of the the proposal and all comments received in light of the proposal, Firstar would control less than 30 percent of total factors set forth in sections 3 and 4 of the BHC Act. deposits held by insured depository institutions in Illinois Firstar, with consolidated assets of approximately $38.5 and Kentucky, which is the appropriate percentage estabbillion, is the 23rd largest commercial banking organiza- lished by applicable state law.8 tion in the United States.3 Firstar is the fifth largest deposi- Iowa law prohibits any bank holding company from tory institution in Ohio and the second largest depository acquiring a depository institution in the state if, as a result institution in Wisconsin, controlling deposits of $8.5 bil- of the acquisition, the bank holding company would conlion in Ohio and $8.4 billion in Wisconsin.4 Firstar also trol more than 10 percent of the total deposits held by operates subsidiary banks in Arizona, Illinois, Indiana, insured depository institutions in the state, as determined Iowa, Kentucky, Minnesota, and Tennessee, and engages in by the Iowa Superintendent of Banking on the basis of the a number of permissible nonbanking activities nationwide. most recent reports of insured depository institutions avail- Mercantile, with total consolidated assets of approxi- able at the time of the acquisition.9 Based on call report mately $36 billion, is the 27th largest commercial banking data, as of June 30, 1999, filed by insured depository organization in the United States. Mercantile is the largest institutions in Iowa, supplemented by the most recently depository institution in Missouri, controlling deposits of available summary of deposit data, Firstar would not ex- $15 billion in the state. Mercantile also operates subsidiary ceed the Iowa deposit cap on consummation of the probanks in Arkansas, Illinois, Iowa, Kansas, and Kentucky, posal and the Iowa Superintendent has advised the Board in writing that the proposal is consistent with Iowa law.10 5. See 12 U.S.C. § 1842(d). A bank holding company's home state 1. All the subsidiary banks of Mercantile are listed in Appendix A. is the state in which the total deposits of all banking subsidiaries of Firstar and Mercantile also have requested the Board's approval to such company were largest on July 1, 1966, or the date on which the hold and exercise options for Firstar to acquire up to 19.9 percent of company became a bank holding company, whichever is later. Mercantile's voting shares and for Mercantile to acquire up to 9.9 6. For purposes of section 3(d) of the BHC Act, the Board considers percent of Firstar's voting shares. The options would expire on a bank to be located in the states in which the bank is chartered or consummation of the proposal. headquartered or operates a branch. See 12 U.S.C. §§ 1841(o)(4)-(7) 2. The nonbanking subsidiaries of Mercantile and their activities are and 1842(d)(1)(A) and (d)(2)(B). listed in Appendix B. 7. 12 U.S.C. § 1842(d)(2)(B)-(D). 3. Asset data are as of December 31, 1998, and deposit data are as 8. See 205 111. Comp. Stat. 5/21.3 (West 1999); Ky. Rev. Stat. Ann. of June 30, 1998. All data are adjusted to reflect subsequent acquisi- § 287.920(4) (Michie 1999). tions by Firstar. See Firstar Corporation, 84 Federal Reserve Bulletin 9. Iowa Code Ann. § 524.1802(1) (West 1999). 1083 (1998) ("Firstar Order"). 10. See Letter from Donald G. Senneff, General Counsel, Iowa 4. In this context, depository institutions include commercial banks, Division of Banking, to Ellen Holmgren, Federal Reserve Bank of savings banks, and savings associations. Chicago, dated August 26, 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 739 Based on all the facts of record, including the interpretation Herfindahl-Hirschman Index ("HHI"),16 and other characof the Iowa deposit cap provided by the Iowa Superinten- teristics of the markets. dent, the Board concludes that it is authorized to approve Consummation of the proposal without divestitures the proposal under section 3(d) of the BHC Act.11 All other would be consistent with Board precedent and the DOJ conditions for an interstate acquisition enumerated in sec- Guidelines in six of the ten banking markets in which tion 3(d) of the BHC Act also are met in this case.12 In Firstar and Mercantile directly compete: Ames, Cedar Rapview of all the facts of record, and for the reasons dis- ids, Des Moines, Omaha-Council Bluffs, and Rock Islandcussed above, the Board is permitted to approve this pro- Davenport, each located in whole or in part in Iowa; and posal under section 3(d) of the BHC Act. Clarksville-Hopkinsville, located in Tennessee and Kentucky.17 In each of these markets, a large number of com- Competitive Factors petitors relative to the size of the market would remain after consummation of the proposal. These banking mar- Section 3 of the BHC Act prohibits the Board from approv- kets, with the exception of the Des Moines and Omahaing a proposal that would result in a monopoly or would be Council Bluffs markets, also would remain moderately in furtherance of any attempt to monopolize the business of concentrated, as measured by the HHI, after consummation banking. The BHC Act also prohibits the Board from of the proposal.18 approving a proposal that would substantially lessen com- In the four remaining banking markets in which Firstar petition in any relevant banking market unless the Board and Mercantile directly compete, the resulting HHI would finds that the anticompetitive effects of the proposal in that exceed the DOJ Guidelines. To mitigate the potential antibanking market are clearly outweighed in the public inter- competitive effects of the proposal in three of these marest by the probable effect of the proposal in meeting the kets (Dubuque-East Dubuque, Mount Pleasant, and Waterconvenience and needs of the community to be served.13 loo, each located in whole or in part in Iowa), Firstar has Firstar and Mercantile compete directly in ten banking committed to divest in these markets a total of seven markets.14 The Board has carefully reviewed the competi- branches that currently control a total of $137 million in tive effects of the proposal in each of these banking mar- deposits.19 After accounting for the proposed divestitures, kets in light of all the facts of record, including the number consummation of the proposal would be consistent with of competitors that would remain in the market, the share Board precedent and the DOJ Guidelines in these three of total deposits in depository institutions in the market ("market deposits") controlled by each competitor in the market,15 the concentration level of market deposits in the 16. Under the Department of Justice Merger Guidelines ("DOJ Guidelines"), 49 Federal Register 26,923 (June 29, 1984), a market in market and the increase in this level, as measured by the which the post-merger HHI is more than 1800 is considered to be highly concentrated. The Department of Justice has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 points. The Department of Justice 11. The Board received a comment from Inner City Press, Bronx, has stated that the higher than normal HHI thresholds for screening New York ("ICP"), alleging that certain deposit transfers made by bank mergers for anticompetitive effects implicitly recognize the Firstar and Mercantile impermissibly circumvent the Iowa deposit competitive effects of limited-purpose lenders and other nondeposicap. The Iowa statute prohibits an acquisition of an Iowa bank if, tory financial institutions. "upon the acquisition," the acquiror "would have" more than 17. The competitive effects of the proposal in these markets are 10 percent of total state deposits. Firstar would not have more than summarized in Appendix D. 10 percent of total Iowa deposits when it acquires Mercantile, and this 18. Additional factors suggest that the anticompetitive effects of the fact has been confirmed by the Iowa Superintendent. proposal in the Des Moines and Omaha-Council Bluffs markets would 12. Firstar is adequately capitalized and adequately managed as be limited. In the Des Moines market, for example, the HHI would defined in section 3(d). 12 U.S.C. § 1842(d)(1)(A). Each bank subsid- increase to 1802, 26 competitors would remain in the market, and iary of Mercantile has been in existence and operated for the mini- Firstar would control 12 percent of market deposits. In the Omahamum period of time required by the law of the state in which it is Council Bluffs market, the HHI would increase by 3 points to 1941, located. 12 U.S.C. § 1842(d)(1)(B). On consummation, Firstar would and Firstar would control 2.9 percent of market deposits and would be control less than 10 percent of the total amount of deposits of insured the seventh largest depository institution in the market. depository institutions in the United States. 12 U.S.C. § 19. The competitive effects of the proposal in the Dubuque-East 1842(d)(2)(A). All other requirements under section 3(d) of the BHC Dubuque, Mount Pleasant, and Waterloo markets are summarized in Act also would be met on consummation of the proposal. Appendix D. Firstar has committed to execute, before consummation 13. See 12 U.S.C. § 1842(c). of the acquisition of Mercantile, sales agreements for the proposed 14. These banking markets are described in Appendix C. divestitures in the Dubuque-East Dubuque, Mount Pleasant, and Wa- 15. Market share data are based on calculations that include the terloo banking markets with purchasers that would satisfy the DOJ deposits of thrift institutions, which include savings banks and savings Guidelines and to complete the divestiture within 180 days of consumassociations, weighted at 50 percent. The Board previously has indi- mation of the acquisition of Mercantile. Firstar also has committed cated that thrift institutions have become, or have the potential to that, if it is unsuccessful in completing any divestitures within the become, significant competitors of commercial banks. See, e.g., Mid- 180-day period, it will transfer the unsold branch(es) to an indepenwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); Na- dent trustee that is acceptable to the Board and will instruct the trustee tional City Corporation, 70 Federal Reserve Bulletin 743 (1984). to sell the branch(es) promptly to one or more alternative purchasers Thus, the Board regularly has included thrift deposits in the calcula- acceptable to the Board. See BankAmerica Corporation, 78 Federal tion of market share on a 50-percent weighted basis. See, e.g., First Reserve Bulletin 338 (1992); United New Mexico Financial Corpora- Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). tion, 77 Federal Reserve Bulletin 484 (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
740 Federal Reserve Bulletin • November 1999 markets. In addition, other factors present in each of the tion or on the concentration of banking resources in the three markets would tend to mitigate the anticompetitive markets in which Firstar and Mercantile now compete or effects of the proposal.20 any other relevant market. Consummation of the proposal in the Clinton banking market, located in Iowa and Illinois, would exceed the DOJ Convenience and Needs Factor Guidelines. In this market, the Board has considered whether other factors either mitigate the competitive ef- In acting on a proposal under section 3 of the BHC Act, the fects of the proposal in the market or indicate that the Board is required to consider the effect of the proposal on proposal would have a significantly adverse effect on com- the convenience and needs of the communities to be petition in the market.21 served. The Board has carefully considered the effect of the Firstar's bank subsidiary is the fourth largest depository proposal on the convenience and needs of the communities institution in the Clinton banking market, controlling to be served in light of all the facts of record, including deposits of $82 million, representing approximately comments on the proposal submitted by the Wisconsin 11.2 percent of market deposits. Mercantile's bank subsid- Rural Development Center, Inc., Ettrick, Wisconsin, and iary is the sixth largest depository institution in the market, ICP ("Commenters"). Commenters opposed the merger controlling deposits of $71.1 million, representing approx- proposal, alleging that Firstar has an inadequate record of imately 9.7 percent of market deposits. After the proposed meeting the banking and credit needs of the communities it merger, Firstar's subsidiary bank would become the second serves, particularly in areas with predominantly low- and largest depository institution in the market, controlling moderate-income ("LMI") and minority populations. deposits of $153.1 million, representing approximately Commenters also expressed concern about Firstar's record 20.9 percent of market deposits. The HHI would increase of lending on the basis of data submitted under the Home 218 points to 1835. Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.) A number of factors indicate that the competitive effects ("HMDA"). One Commenter also expressed concern about of the proposal are not likely to be significantly adverse in Firstar's record of lending and providing services to rural this market. After consummation of the proposal, ten de- and LMI communities in Wisconsin and its record of pository institutions would continue to operate in the mar- participation in state and federally guaranteed loan proket. One depository institution would control a larger per- grams designed to assist LMI individuals, small busicentage of market deposits than Firstar and five of the ten nesses, and owners of small farms. depository institutions in the market would each control more than 10 percent of market deposits. A. CRA Performance Examinations The Department of Justice has reviewed the proposal, including its effect on competition in the Clinton banking The Board has long held that consideration of the convemarket, and advised the Board that consummation of the nience and needs factor includes a review of the records of proposal would not likely have a significantly adverse the relevant depository institutions under the Community effect on competition in any relevant banking market. The Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). As Office of the Comptroller of the Currency ("OCC") and provided in the CRA, the Board has evaluated this factor in the Federal Deposit Insurance Corporation ("FDIC") also light of examinations of the CRA performance records of have been afforded an opportunity to comment and have the relevant institutions by the appropriate federal financial not objected to consummation of the proposal. supervisory agency.22 After carefully reviewing all the facts of record, the All of Firstar's subsidiary banks received "outstanding" Board concludes that consummation of the proposal would or "satisfactory" ratings in the most recent examinations not result in any significantly adverse effects on competi- of their CRA performance. Firstar's lead subsidiary bank, Firstar Ohio, received an "outstanding" rating in its most recent CRA performance evaluation by the OCC, as of 20. For example, in the Dubuque-East Dubuque banking market, five competitors, including Firstar, each would control 5 percent or more of market deposits after consummation of the proposal, and two competitors would each have a larger market share than Firstar. As a result of the proposed divestitures in the Mount Pleasant banking 22. The Interagency Questions and Answers Regarding Community market, consummation of the proposal would result in no change in Reinvestment provides that an institution's most recent CRA performarket concentration. The Waterloo banking market appears to be mance evaluation is an important and often controlling factor in the attractive for entry and, in fact, two depository institutions have consideration of an institution's CRA record because it represents a entered the market de novo in the past two years. The Waterloo detailed evaluation of the institution's overall record of performance Metropolitan Statistical Area ("MSA"), which approximates the Wa- under the CRA by the appropriate federal banking supervisor. terloo banking market, has a larger population and more deposits per 64 Federal Register 23,618 and 23,641 (1999). One Commenter banking office, and has experienced a larger percentage increase in expressed concern that the CRA performance evaluations of Firstar's total market deposits and per capita income, than any other MSA in subsidiary banks are outdated. The Board notes that it has not relied Iowa. exclusively on the CRA performance evaluations to assess Firstar's 21. The number and strength of factors necessary to mitigate the CRA performance record. The Board also has relied on other informacompetitive eifects of a proposal depend on the level of concentration tion, including supervisory information and information provided by and magnitude of the increase in market concentration. See Na- Firstar, concerning Firstar's CRA performance since the date of its tionsBank Corporation, 84 Federal Reserve Bulletin 129 (1998). most recent CRA performance evaluations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 741 December 1996.23 Firstar's largest subsidiary bank in Wis- LMI areas compared favorably to the percentage of ownerconsin, Firstar Bank Milwaukee, National Association, occupied units in the assessment area that were located in Milwaukee, Wisconsin ("Firstar Milwaukee"), received a LMI areas. Examiners also noted that 30 percent of the "satisfactory" rating in its most recent CRA performance total dollar amount of home equity loans made by Firstar evaluation by the OCC, as of November 1997.24 The Ohio from January 1, 1995, through June 30, 1996, were subsidiary banks of Mercantile also received "outstand- made in LMI census tracts in the bank's assessment area. ing" or "satisfactory" ratings in the most recent examina- Examiners noted that Firstar Ohio offered a variety of tions of their CRA performance.25 products and programs to assist in meeting the housing- Firstar represents that it will retain its approach to meet- related credit needs of LMI individuals and communities. ing its responsibilities under the CRA after consummation The Home Advantage Program, for example, offers mortof the proposal. Accordingly, the Board has paid particular gages that feature lower down payments, flexible debt attention to the CRA performance record of Firstar in ratios, and no private mortgage insurance for qualified considering the effect of the proposal on the convenience individuals. Examiners stated that, in 1995, Firstar Ohio and needs factor. originated more than 1,100 mortgage loans under the program, totaling $56.4 million, and more than 600 home B. Firstar's CRA Performance Record improvement loans, totaling $4.9 million. Examiners also favorably noted Firstar Ohio's distribu- Firstar Ohio. Examiners commended Firstar Ohio for its tion of loans among businesses and farms of different sizes. responsiveness to the credit needs in its assessment area, For example, examiners noted that 93 percent of Firstar particularly the needs of LMI communities and borrowers. Ohio's total number of farm loans made between January Between July 1, 1994, and June 30, 1996, Firstar Ohio 1995 and June 1996, accounting for 67 percent of the total made 18 percent of all its HMDA-reported loans, and 10 dollar amount of these loans, were made to farms with percent of the total dollar amount of these loans, in LMI gross annual revenues of $1 million or less. areas. Examiners noted that the bank's penetration level in The CRA performance examination cited the high level of community development loans that Firstar Ohio had originated. For example, from January 1994 through July 23. Firstar Ohio was formerly named Star Bank, N.A., and was 1996, Firstar Ohio originated 21 loans, totaling $70 milacquired by Firstar in 1998 through a merger with Star Banc Corpora- lion, which resulted in the rehabilitation of 1,848 units of tion, Cincinnati, Ohio ("SBC"). See Firstar Order. The most recent affordable rental housing. Examiners also noted a signifi- CRA performance evaluation for Firstar Ohio was conducted before cant level of community development investments. Firstar the merger. After the merger, Firstar adopted SBC's CRA program. Ohio made $2.5 million in investments between November See Firstar Order at 1084. 24. In addition, Firstar Bank Wisconsin, Madison, Wisconsin 1994 and December 1996, and examiners characterized a ("Firstar Wisconsin"), received an "outstanding" rating in its most large portion of these investments as complex and innovarecent CRA performance evaluation by the Federal Reserve Bank of tive. Chicago, as of April 1997; Firstar Bank of Minnesota, N.A., St. Paul, Firstar Ohio appears to have continued its efforts to Minnesota, received a "satisfactory" rating in its most recent CRA performance evaluation by the OCC, as of December 1997; Firstar address the credit needs of the communities in its assess- Bank U.S.A., N.A., Waukegan, Illinois, received a "satisfactory" ment areas based on bank reporting data and information rating in its most recent CRA performance evaluation by the OCC, as provided by Firstar. Firstar Ohio made 18.7 percent of its of November 1997; Firstar Bank Wausau, N.A., Wausau, Wisconsin, HMDA-reportable loans in LMI census tracts in 1997 and received an "outstanding" rating in its most recent CRA performance 14.8 percent of its HMDA-reportable loans in LMI census evaluation by the OCC, as of May 1995; Firstar Bank Burlington, National Association, Burlington, Iowa, received an "outstanding" tracts in 1998. For each year, the percentage of these loans rating in its most recent CRA performance evaluation by the OCC, as by Firstar Ohio was more than the percentage of HMDAof April 1995; and Firstar Metropolitan Bank & Trust, Phoenix, reportable loans originated in LMI census tracts by lenders Arizona, received a "satisfactory" rating in its most recent CRA in the aggregate. In addition, Firstar represents that, in performance evaluation by the FDIC, as of July 1996. 25. Mercantile Bank National Association received a "satisfactory" 1998, the bank originated 428 loans, totaling $25.6 million, rating in its most recent CRA performance evaluation by the OCC, as under the Home Advantage Program. of June 1997; Mercantile Bank of Arkansas National Association, In 1998, Firstar Ohio originated approximately 19 per- North Little Rock, Arkansas, received a "satisfactory" rating in its cent of its Ohio small business loans to businesses located most recent CRA performance evaluation by the OCC, as of Novemin LMI census tracts that had gross annual revenues of less ber 1996; Mercantile Bank, Overland Park, Kansas, received an "outstanding" rating in its most recent CRA performance evaluation than $1 million. The percentage of such loans made by by the Federal Reserve Bank of Kansas City, as of September 1998; lenders in the aggregate was approximately 17 percent. Mercantile Bank of Illinois, Springfield, Illinois, received a "satisfac- Firstar states that Firstar Ohio also participates in the Ohio tory" rating in its most recent CRA performance evaluation by the Agricultural Linked Deposit Program, under which Firstar FDIC, as of December 1997; Mercantile Bank of Kentucky, Paducah, Kentucky, received an "outstanding" rating in its most recent CRA Ohio provides low-interest loans to Ohio farmers that are performance evaluation by the FDIC, as of August 1996; Mercantile funded by the State of Ohio. Firstar represents that Firstar Bank Midwest, Des Moines, Iowa, received a "satisfactory" rating in Ohio made 30 loans, totaling approximately $4.6 million, its most recent CRA performance evaluation by the Federal Reserve under this program from January 1997 to June 1999. Bank of Chicago, as of August 1997; and Mercantile Bank of Trenton, Trenton, Missouri, received an "outstanding" rating in its most recent In July 1999, Firstar announced the establishment of the CRA performance evaluation by the FDIC, as of August 1995. Adopt-A-B lock program to be implemented in all of its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
742 Federal Reserve Bulletin • November 1999 subsidiary banks. Under the program, specific blocks or Examiners reported in the examination that Firstar Milneighborhoods with special credit needs will be identified, waukee offered a variety of low-cost checking accounts to and residents and small business in these communities will consumers, small businesses, community groups, and nonbe offered low-cost loans and other banking services. For profit organizations. Firstar Milwaukee also cashed certain example, the program includes fixed-rate mortgage loans types of federal government benefit checks without charge with no private mortgage insurance requirements and low for both customers and noncustomers of the bank, which downpayment requirements. Firstar represents that it has examiners noted was unique in the bank's assessment area. identified to date four communities for the program in In September 1998, Firstar introduced the Family Services Ohio, Kentucky, and Wisconsin. Firstar also indicates that, Loan Program in Wisconsin, which offers low-income in the two years since its CRA performance examination, individuals small loans at a reduced rate of interest for the Firstar Ohio has sponsored over 100 financial training purpose of paying unexpected personal expenses. As of programs and seminars that offer training and support to June 8, 1999, Firstar Milwaukee and Firstar Wisconsin had LMI individuals in the areas of homeownership, obtaining loaned approximately $44,000 of the $50,000 allocated to credit, small business formation, low-income housing de- the program in amounts that averaged $2,200. velopment, and nonprofit financing. Firstar Wisconsin. The CRA examination of Firstar Wis- Firstar Milwaukee. Examiners found that Firstar Mil- consin found that the bank had a strong record of small waukee was responsive to the credit needs of all segments business and small farm lending. Examiners noted that, in of its service community. In particular, examiners com- 1996, Firstar Wisconsin made more than 3,600 small busimended the bank for the level of its home mortgage and ness loans and originated more than 230 small farm loans. home improvement lending in LMI census tracts. Examin- Examiners stated that approximately 500 of the bank's ers noted that, in 1996, Firstar Milwaukee made 10 percent small business and farm loans, totaling approximately $42 of its housing-related loans in LMI census tracts, which million, were made in LMI areas.27 Firstar reports that, almost equaled the 13 percent of owner-occupied housing during 1998, Firstar Wisconsin originated 2,826 small busiin the bank's service communities that were in these cen- ness loans in Wisconsin in amounts of $100,000 or less, sus tracts. Examiners also commended Firstar Milwaukee totaling $83.5 million. for making 38 percent of its consumer loans to LMI The CRA performance examination concluded that borrowers, which exceeded the percentage of LMI borrow- Firstar Wisconsin offered a variety of governmentally iners in the general population in the bank's assessment area. sured, guaranteed, and subsidized loans to small busi- Since that examination, Firstar represents that Firstar Mil- nesses, small farms, and LMI borrowers. Examiners noted, waukee made approximately 14.6 percent of its housing- for example, that during 1996 Firstar Wisconsin originated related loans in LMI census tracts in 1997, and approxi- 149 Small Business Administration ("SBA") loans, totalmately 43 percent of its housing-related loans in LMI ing $35.4 million, and 69 Farm Service Agency ("FSA") census tracts in 1998. loans, totaling $11.7 million. Examiners also commended Examiners commended Firstar Milwaukee for its lend- the bank for participating in a lending program of the ing to small businesses, including small businesses in LMI Department of Housing and Urban Development that ofcensus tracts. Examiners noted that Firstar Milwaukee had fered nontraditional mortgage loans on real property lointroduced a small business line-of-credit program that cated on the Lac Courte Oreille Reservation where convenoffered a streamlined application process and was designed tional mortgage lending was difficult because borrowers for emerging small businesses that needed to build a credit often did not own the mortgaged real estate outright. history. From the program's inception in 1996 through Firstar states that, since the CRA performance examina- November 1997, examiners noted that Firstar Milwaukee tion, Firstar Wisconsin has continued to participate acoriginated 147 small business credit lines under this pro- tively in various government-guaranteed loan programs. gram, totaling more than $3.5 million.26 In addition, Firstar indicates that, in 1998, Firstar Milwaukee originated 808 loans with principal amounts of $1 million or less, totaling 27. One Commenter expressed concern about Firstar's commitment $81.2 million, to businesses with gross annual revenues of to agricultural lending in Wisconsin. The number of small farm loans $1 million or less. On a combined basis, the Firstar lending originated by all of Firstar's subsidiary lending institutions in Wisconsin increased by 312 percent between 1996 and 1997 and decreased by organizations operating in Wisconsin, which include Firstar 43 percent between 1997 and 1998. By contrast, lenders in the Milwaukee, Firstar Wisconsin, and Firstar Home Mortgage aggregate in Wisconsin increased their small farm loans only 3 Corporation ("FHMC"), originated 17.5 percent of their percent between 1996 and 1997, and their lending decreased by 13 loans to businesses with gross annual revenues of less than percent between 1997 and 1998. Although Firstar's small farm lend- $1 million in LMI census tracts in Wisconsin in 1998, ing fluctuated more widely than it did among lenders in the aggregate, Firstar's small farm lending increased by 76 percent between 1996 compared to 12.5 percent made by lenders in the aggreand 1998 compared to a decrease of 11 percent among lenders in the gate. aggregate. Firstar represents that it continues to be committed to agricultural lending in Wisconsin. According to Firstar, its Wisconsin bank subsidiaries employ local relationship managers with expertise in agricultural lending and lending authority, and it recently formed an 26. Firstar represents that, during 1998, Firstar Milwaukee origi- "Ag Council," which includes community bank presidents in all the nated 98 lines of credit under this program, representing a total communities in which Firstar operates, to address specific lending commitment of $1.2 million. needs of farmers in these communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 743 For example, Firstar reports that Firstar Wisconsin made The data for 1996, 1997, and 1998, however, reflect more than 130 SBA loans in 1997, totaling $37.8 million, certain disparities in the rates of loan applications and and that the bank made 56 SBA loans in the first six denials among members of different racial groups and months of 1998, totaling $15.2 million. Firstar also states persons of different income levels.29 The Board is conthat Firstar Wisconsin and its affiliates in Wisconsin con- cerned when the record of an institution indicates disparitinue to participate in various lending programs operated ties in lending, and believes that all banks are obligated to by the Wisconsin Housing and Economic Development ensure that their lending practices are based on criteria that Authority ("WHEDA"). Firstar reports that Firstar Wis- ensure not only safe and sound lending but also equal consin, Firstar Milwaukee, and FHMC together originated access to credit by creditworthy applicants regardless of approximately 151 loans through WHEDA, totaling ap- their race or income level. proximately $8.8 million in 1997 and approximately 117 The Board recognizes that HMDA data alone provide an such loans, totaling approximately $7.4 million in 1998.28 incomplete measure of an institution's lending in its com- The CRA performance examination commended the munity because these data cover only a few categories of bank's responsiveness to the credit needs of LMI individu- housing-related lending. HMDA data, moreover, provide als and areas. For example, according to the CRA perfor- only limited information about the covered loans.30 HMDA mance examination, Firstar Wisconsin and FHMC made data, therefore, have limitations that make them an inademore than 10 percent of their housing-related loans in LMI quate basis, absent other information, for concluding that census tracts and approximately 21 percent of their an institution has not adequately assisted in meeting its housing-related loans to LMI borrowers. Examiners favor- community's credit needs or has engaged in illegal lending ably characterized the distribution of the bank's housing- discrimination. related loans in LMI census tracts and to LMI borrowers. Because of the limitations of HMDA data, the Board Firstar represents that FHMC originated 10 percent of its considered these data carefully in light of other informamortgage loans in 1997, and 9 percent of its mortgage tion. The CRA performance examinations found no eviloans in 1998, in LMI census tracts. This is generally dence of prohibited discrimination or illegal credit pracconsistent with the percentage of mortgage loans origi- tices at Firstar's subsidiary banks. Examiners concluded nated by lenders in the aggregate in LMI census tracts, that the banks solicited and accepted credit applications which was 12 percent in 1997 and 10 percent in 1998. from all segments of their communities. Examiners also Examiners noted that Firstar Wisconsin made extensive generally noted that loans made by the banks were reasonuse of innovative and flexible lending practices and pro- ably distributed throughout the local communities served, grams. For example, examiners cited favorably Firstar's including LMI areas, and that the banks served all memcontinued participation in the AdvoCap program, a state bers of these communities, including LMI individuals. In sponsored program that provides mortgages with flexible addition, examiners generally determined that the banks' underwriting standards to LMI families that are first-time delineations of the local communities they served were homebuyers. reasonable and did not arbitrarily exclude any LMI census tracts. Moreover, the programs and lending efforts that C. HMDA Data Firstar has designed to address the credit needs of all the communities served by Firstar do not indicate any prohib- The Board also has considered the lending record of ited discrimination or illegal credit practices at Firstar's Firstar's subsidiaries in light of the comments on their subsidiary banks and the lending subsidiaries of these HMDA data. The most recent data available for 1998 banks. The Board also notes that, in addition to offering generally indicate that Firstar's record of lending in Ohio home mortgage programs to LMI and minority individuals, and Wisconsin compare favorably to the record of lenders Firstar has a number of programs, including the programs in the aggregate in these states. For example, Firstar Ohio described above, designed to address the diverse credit originated a higher percentage of HMDA-reportable loans needs of these individuals. in Ohio in 1998 to African Americans, Hispanics, LMI borrowers, and LMI residents than lenders in the aggregate. In Wisconsin, Firstar originated the same or a higher percentage of its HMDA-reportable loans in 1998 to African Americans and Hispanics than did lenders in the aggregate. 29. Commenters criticized Firstar for lending disparities between minority and white applicants in the Chicago MSA and MSAs in Wisconsin. 28. One Commenter expressed concern that Firstar has reduced its 30. The data, for example, do not account for the possibility that an participation in WHEDA agricultural and home lending programs, institution's outreach efforts may attract a larger proportion of marginand other government-supported loan programs that benefit farmers ally qualified applicants than other institutions attract and do not and rural communities in Wisconsin. Firstar has indicated that it provide a basis for an independent assessment of whether an applicant remains an active participant in the WHEDA loan program, including who was denied credit was, in fact, creditworthy. Credit history the agricultural and home lending programs of WHEDA, and suggests problems and excessive debt levels relative to income (reasons most that some borrowers eligible for loans under WHEDA may have frequently cited for a credit denial) are not available from HMDA obtained comparable financing through other Firstar programs. data. 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744 Federal Reserve Bulletin • November 1999 D. Conclusion on the Convenience and Needs Nonbanking Activities Factor Firstar also has filed a notice under section 4(c)(8) of the In its review of the convenience and needs factor under the BHC Act to acquire Mercantile's nonbanking subsidiaries BHC Act, the Board has carefully considered the entire and thereby to engage in credit activities, trust company record, including the CRA performance examinations of functions, credit insurance activities, and community deeach of the insured depository institutions involved in this velopment activities. The Board has determined by regulaproposal, all the information provided by Commenters, tion that these activities are closely related to banking for recent data provided by the insured depository institutions purposes of the BHC Act.33 Firstar has committed to in regulatory reports, and information provided by Firstar conduct these nonbanking activities in accordance with the and Mercantile concerning recent efforts to address the limitations set forth in Regulation Y and the Board's orders convenience and needs of the communities served by the and interpretations governing each of these activities.34 institutions.31 Based on all the facts of record, and for the In order to approve a notice under section 4(c)(8) of the reasons discussed above, the Board concludes that consid- BHC Act, the Board also must determine that the proposed erations relating to the convenience and needs factor, in- activities are a proper incident to banking, that is, that the cluding the CRA performance records of the relevant insti- proposal "can reasonably be expected to produce benefits tutions, are consistent with approval of the proposal. to the public . . . that outweigh possible adverse effects, such as undue concentration of resources, decreased or Financial, Managerial, and Other Supervisory Factors unfair competition, conflicts of interests, or unsound banking practices."35 Firstar has indicated that, after consumma- The BHC Act also requires the Board, in acting on an tion of the proposal, it would be able to provide more application, to consider the financial and managerial re- products and services with greater efficiency to current and sources and future prospects of the companies and banks future customers of Firstar and Mercantile. Firstar would involved in a proposal and certain other supervisory fac- achieve greater operational efficiencies, realize greater tors. The Board has carefully considered the financial and economies of scale, and eliminate redundant systems and managerial resources and future prospects of Firstar, Mer- technologies. These efficiencies would strengthen Firstar's cantile, and their respective subsidiary banks, and other ability to compete more effectively in the markets in which supervisory factors in light of all the facts of record, it operates. In addition, as the Board has previously noted, including supervisory reports of examination assessing the there are public benefits to be derived from permitting financial and managerial resources of the organizations and capital markets to operate so that bank holding companies confidential financial information provided by Firstar. can make potentially profitable investments in nonbanking Based on these and all the other facts of record, the Board companies and from permitting banking organizations to concludes that the financial and managerial resources and allocate their resources in the manner they consider to be future prospects of Firstar, Mercantile, and their subsidiary most efficient when such investments and actions are conbanks are consistent with approval, as are the other supervisory factors that the Board must consider under section 3 of the BHC Act.32 indicate that the actions taken in this case involve the actual integration of the two companies or other actions that would represent the exercise by Firstar of a controlling influence over the management or 31. The Commenters criticized Firstar for not entering into agree- policies of Mercantile. Instead, Firstar and Mercantile have exchanged ments with community-based organizations that would provide sepa- information and begun planning the manner in which certain operarate monetary goals for CRA performance in a particular geographic tions could be integrated if the proposal receives all required regulaarea and for not making CRA pledges for any community other than tory approvals. The Board recognizes that it is necessary and appropri- St. Louis, Missouri. The Board recognizes that communications by ate for organizations that have agreed to merge to coordinate their depository institutions with community groups provide a valuable integration efforts to ensure an orderly transition. Based on all the method of assessing and determining how best to meet the credit facts of record, the Board concludes that the actions of Firstar and needs of a community. Neither the CRA nor the CRA regulations of Mercantile to coordinate their integration efforts are consistent with the federal supervisory agencies, however, require depository institu- the BHC Act and with approval of the proposal. tions to enter into agreements with any organization. The Board, 33. See 12 C.F.R. 225.28(b)(1), (5), (ll)(i), and (12). therefore, has viewed such agreements and their enforceability as 34. Firstar also currently engages in insurance activities grandfaprivate contractual matters between the parties and has focused on the thered under section 4(c)(8)(G) of the BHC Act (12 U.S.C. existing record of performance by the applicant and the programs that § 1843(c)(8)(G)) ("Exemption G"). The structure of the transaction, the applicant has in place to serve the credit needs of its communities. including the relative size and market capitalization of the parties; the The Board notes that Firstar will have a responsibility to help serve relative share ownership of the surviving company by current Firstar the credit needs of its entire community after consummation of the and Mercantile shareholders; the management of the surviving comproposal, including LMI neighborhoods, with or without private CRA pany; and the fact that Firstar would be the legal entity surviving the agreements, and that its actual CRA performance will continue to be proposed merger, indicates that Firstar would be the surviving comevaluated in on-site examinations. pany after consummation of the proposal for purposes of the BHC 32. A Commenter has asserted that the efforts of Firstar and Mercan- Act. Accordingly, based on all the facts of record in this case, the tile to plan for the integration of their organizations and operations Board has determined that Firstar would retain its grandfathered rights after consummation of the proposal constitute the exercise by Firstar to engage in Exemption G activities after consummation of the proof a controlling influence over Mercantile without prior Board ap- posal. proval. Information provided by the Commenter and Firstar does not 35. 12 U.S.C. § 1843(c)(8). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 745 sistent, as in this case, with the relevant considerations this application and with the conditions stated or referred under the BHC Act.36 to in this order. The Board's determination on the nonbank- As part of its evaluation of these factors, the Board also ing activities also is subject to all the terms and conditions considers the financial condition and managerial resources set forth in Regulation Y, including those in sections 225.7 of the notificant and its subsidiaries, including the compa- and 225.25(c) (12 C.F.R. 225.7 and 225.25(c)), and to the nies to be acquired, and the effect of the proposed transac- Board's authority to require such modification or termination on those resources. For the reasons noted above, and tion of the activities of a bank holding company or any of based on all the facts of record, the Board has concluded its subsidiaries as the Board finds necessary to ensure that financial and managerial considerations are consistent compliance with, and to prevent evasion of, the provisions with approval of the notice. of the BHC Act and the Board's regulations and orders The Board also has considered the competitive effects of thereunder. For purposes of this action, the commitments the proposed acquisition by Firstar of the nonbanking and conditions relied on by the Board in reaching its subsidiaries of Mercantile. Numerous competitors would decision are deemed to be conditions imposed in writing remain in each of the nonbanking markets in which Firstar by the Board in connection with its findings and decision and Mercantile compete, and the market structure for pro- and, as such, may be enforced in proceedings under applividing each of these services would remain unconcen- cable law. trated. Consummation of the proposal, therefore, would The acquisition of Mercantile's subsidiary banks shall have a de minimis effect on competition in each of these not be consummated before the fifteenth calendar day markets. Based on all the facts of record, the Board con- following the effective date of this order, and the proposal cludes that it is unlikely that significantly adverse competi- shall not be consummated later than three months after the tive effects would result from the nonbanking acquisitions effective date of this order, unless such period is extended proposed in the transaction. for good cause by the Board or by the Federal Reserve The Board also concludes that the conduct of the pro- Bank of Chicago, acting pursuant to delegated authority. posed nonbanking activities within the framework of By order of the Board of Governors, effective Septem- Regulation Y and Board precedent is not likely to result in ber 1, 1999. adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or Voting for this action: Governors Kelley, Meyer, Ferguson, and unsound banking practices, that would outweigh the public Gramlich. Absent and not voting: Chairman Greenspan. benefits of the proposal, such as increased customer convenience and gains in efficiency. Accordingly, based on all ROBERT DEV. FRIERSON the facts of record, the Board has determined that the Associate Secretary of the Board balance of public interest factors that the Board must consider under the proper incident to banking standard of Appendix A section 4(c)(8) of the BHC Act is consistent with approval of Firstar's notice. Banking Subsidiaries of Mercantile Conclusion Mercantile Bank National Association, St. Louis, Missouri Mercantile Bank of Trenton, Trenton, Missouri Based on the foregoing, and in light of all the facts of Mercantile Bank, Overland Park, Kansas record, the Board has determined that the application and Mercantile Bank of Arkansas National Association, North notice should be, and hereby are, approved.37 The Board's Little Rock, Arkansas approval is specifically conditioned on compliance by Mercantile Bank of Illinois, Springfield, Illinois Firstar with all the commitments made in connection with Mercantile Bank of Kentucky, Paducah, Kentucky Mercantile Bank Midwest, Des Moines, Iowa 36. See, e.g., Banc One Corporation, 84 Federal Reserve Bulletin 553 (1998); First Union Corporation, 84 Federal Reserve Bulletin Appendix B 489 (1998). 37. Commenters requested that the Board extend the public com- Nonbanking Subsidiaries of Mercantile ment period, and one Commenter requested that the Board delay approval of the proposal until the Board completes a comprehensive review of Firstar's CRA performance and lending record. The Board Mercantile Consumer Loan Company, Rock Island, Illihas accumulated a significant record in this case, including reports of nois, and thereby engage in making, acquiring, brokering, examination, supervisory information, public reports and information, or servicing loans or other extensions of credit in accorand public comment. In addition, the Commenters have had ample opportunity to submit their views and, in fact, have provided substan- dance with section 225.28(b)(1) of Regulation Y (12 C.F.R. tial written submissions that have been considered carefully by the 225.28(b)(1)); Board in acting on the proposal. Based on a review of all the facts of record, the Board concludes that the record in this case is sufficient to FFG Trust, Inc., Springfield, Illinois, and Mercantile Trust warrant Board consideration and action on the proposal at this time, and that further delay of consideration of the proposal or an extension Company National Association, St. Louis, Missouri, and of the comment period is not warranted. thereby engage in trust company activities in accordance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
746 Federal Reserve Bulletin • November 1999 with section 225.28(b)(5) of Regulation Y (12 C.F.R. County, Nebraska; and Pottawattamie County, Iowa, ex- 225.28(b)(5)); cept the eastern two tiers of townships. Mississippi Valley Life Insurance Company, St. Louis, Rock Island-Davenport Missouri, and Mercantile Consumer Loan Company, Rock Island, Illinois, and thereby engage in acting as principal, Scott County; Farmington township in Cedar County; Rock agent, or broker for insurance in accordance with section Island County, Illinois, except the townships of Drury and 225.28(b)(ll)(i) of Regulation Y (12 C.F.R. Buffalo Prairie; and the townships of Colona, Edford, 225.28(b)(ll)(i)); and Geneseo, Hanna, and Western in Henry County, Illinois. D.D. Development of Sterling, Sterling, Illinois, and Waterloo thereby engage in community development activities in accordance with section 225.28(b)(12) of Regulation Y Black Hawk County; the townships of Jefferson and Jack- (12 C.F.R. 225.28(b)(12)). son in Bremer County; and Beaver township in Butler County. Appendix C Tennessee and Kentucky Banking Markets in Which Firstar and Mercantile Directly Compete Clarksville-Hopkinsville Iowa Montgomery County and Stewart County in Tennessee and Christian County in Kentucky. Ames Appendix D Boone County; Story County; and the townships of Clear Lake, Ellsworth, Lincoln, Lyon, Marion, and Scott in Ham- Summary of Market Structure ilton County. A. Banking Markets Without Divestitures Cedar Rapids Ames Linn County and Jefferson township in Johnson County. Firstar is the second largest depository institution in the market, controlling deposits of $114.8 million, represent- Clinton ing approximately 9 percent of market deposits. Mercantile is the third largest depository institution in the market, Clinton County, except the townships of Bloomfield, controlling deposits of $96 million, representing approxi- Brookfield, and Sharon; York township in Carroll County; mately 7.5 percent of market deposits. After the proposed and the townships of Albany, Fulton, and Garden Plain in merger, Firstar would remain the second largest depository Whiteside County, Illinois. institution in the market, controlling deposits of $210.8 million, representing approximately 16.5 percent of market Des Moines deposits. The HHI would increase 135 points to 1721. Polk County and Linn township in Warren County. Cedar Rapids Dubuque-East Dubuque Firstar is the largest depository institution in the market, controlling deposits of $542.4 million, representing ap- Dubuque County; Dunleith township in Jo Daviess County, proximately 24.1 percent of market deposits. Mercantile is Illinois; the townships of Hazel Green, Jamestown, Paris, the fourth largest depository institution in the market, and Smelser in Grant County, Wisconsin; and Benton controlling deposits of $174.2 million, representing aptownship in Lafayette County, Wisconsin. proximately 7.7 percent of market deposits. After the proposed merger, Firstar would remain the largest depository Mount Pleasant institution in the market, controlling deposits of $716.8 million, representing approximately 31.8 percent of market Henry County and Cedar township in Lee County. deposits. The HHI would increase 372 points to 1644. Omaha-Council Bluffs Des Moines Omaha-Council Bluffs Rand McNally Marketing Area; the Firstar is the fourth largest depository institution in the contiguous areas east of the Elkhorn River in Douglas market, controlling deposits of $360.2 million, represent- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 1A1 ing approximately 6.7 percent of market deposits. Mercan- tile is the third largest depository institution in the market, tile is the eighth largest depository institution in the mar- controlling deposits of $235.5 million, representing apket, controlling deposits of $283.9 million, representing proximately 16.7 percent of market deposits. Firstar proapproximately 5.3 percent of market deposits. After the poses to divest two branches with total deposits of approxproposed merger, Firstar would become the second largest imately $52.4 million. After the proposed merger and depository institution in the market, controlling deposits of divestiture, Firstar would become the third largest deposi- $644.1 million, representing approximately 12 percent of tory institution in the market, controlling deposits of $313.9 market deposits. The HHI would increase 70 points to million, representing approximately 22.3 percent of market 1802. deposits. Assuming that Firstar would sell the branches to a suitable out-of-market competitor, the HHI would increase Omaha-Council Bluffs 145 points to 2083. Firstar is the ninth largest depository institution in the Mount Pleasant market, controlling deposits of $181 million, representing approximately 2.1 percent of market deposits. Mercantile Firstar is the largest depository institution in the market, is the 15th largest depository institution in the market, controlling deposits of $85.9 million, representing approxcontrolling deposits of $75 million, representing less than 1 imately 37.9 percent of market deposits. Mercantile is the percent of market deposits. After the proposed merger, second largest depository institution in the market, control- Firstar would become the seventh largest depository insti- ling deposits of $41.3 million, representing approximately tution in the market, controlling deposits of $256 million, 18.2 percent of market deposits. Firstar proposes to divest representing approximately 2.9 percent of market deposits. three branches with total deposits of approximately $41.3 The HHI would increase 3 points to 1941. million. After the proposed merger and divestiture, Firstar would remain the largest depository institution in the mar- Rock Island-Davenport ket, controlling deposits of $85.9 million, representing approximately 37.9 percent of market deposits. Thus, Firstar is the fifth largest depository institution in the Firstar's market share would not increase in this market. market, controlling deposits of $214.6 million, represent- Assuming that Firstar would sell branches to a suitable ing approximately 5 percent of market deposits. Mercantile out-of-market competitor, the HHI would remain unis the second largest depository institution in the market, changed at 2105. controlling deposits of $595.3 million, representing approximately 13.9 percent of market deposits. After the Waterloo proposed merger, Firstar would become the second largest depository institution in the market, controlling deposits of Firstar is the fourth largest depository institution in the $809.9 million, representing approximately 18.9 percent of market, controlling deposits of $96 million, representing market deposits. The HHI would increase 140 points to approximately 5.9 percent of market deposits. Mercantile 1061. is the second largest depository institution in the market, controlling deposits of $435.2 million, representing ap- Clarksville-Hopkinsville proximately 26.7 percent of market deposits. Firstar proposes to divest two branches with total deposits of approx- Firstar is the seventh largest depository institution in the imately $43 million. After the proposed merger and Hopkinsville market, controlling deposits of $94.3 million, divestiture, Firstar would become the second largest deposrepresenting approximately 5.7 percent of market deposits. itory institution in the market, controlling deposits of Mercantile is the tenth largest depository institution in the $488.2 million, representing approximately 30 percent of market, controlling deposits of $48.6 million, representing market deposits. Assuming that Firstar would sell the approximately 3 percent of market deposits. After the branches to a suitable out-of-market competitor, the HHI proposed merger, Firstar would become the sixth largest would increase 156 points to 2584. depository institution in the market, controlling deposits of $142.9 million, representing approximately 8.7 percent of Fleet Financial Group, Inc. market deposits. The HHI would increase 34 points to Boston, Massachusetts 1137. BankBoston Corporation B. Banking Markets With Divestitures, Except the Boston, Massachusetts Clinton Banking Market Order Approving the Merger of Bank Holding Dubuque-East Dubuque Companies Firstar is the fourth largest depository institution in the Fleet Financial Group, Inc. ("Fleet"), a bank holding commarket, controlling deposits of $130.9 million, represent- pany within the meaning of the Bank Holding Company ing approximately 9.3 percent of market deposits. Mercan- Act ("BHC Act"), has requested the Board's approval Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
748 Federal Reserve Bulletin • November 1999 under section 3 of the BHC Act (12 U.S.C. § 1842) to Corporation ("Fleet Boston"), and would have a signifimerge with BankBoston Corporation ("BankBoston") and cant presence in the northeastern United States. thereby acquire BankBoston's subsidiary banks, including its lead subsidiary bank, BankBoston, N.A., Boston, Mas- Factors Governing Board Review of the Transaction sachusetts.1 Fleet also has requested the Board's approval under section 4(c)(8) of the BHC Act (12 U.S.C. The BHC Act enumerates the factors the Board must § 1843(c)(8)) and section 225.24 of the Board's Regula- consider when reviewing the merger of bank holding comtion Y (12 C.F.R. 225.24) to acquire the domestic nonbank- panies or the acquisition of banks. These factors are the ing subsidiaries of BankBoston.2 In addition, Fleet has competitive effects of the proposal in the relevant geofiled applications and notices under section 4(c)(13) of the graphic markets; the financial and managerial resources BHC Act (12 U.S.C. § 1843(c)(13)), sections 25 and 25A and future prospects of the companies and banks involved of the Federal Reserve Act (12 U.S.C. §§ 601 et seq. and in the transaction; the convenience and needs of the com- 611 et seq.), and the Board's Regulation K (12 C.F.R. 211) munities to be served, including the records of perforto acquire the foreign operations and Edge Act subsidiaries mance under the Community Reinvestment Act (12 U.S.C. of BankBoston.3 § 2901 et seq.) ("CRA") of the insured depository institu- Fleet, with total consolidated assets of approximately tions involved in the transaction; and the availability of $104.4 billion, is the ninth largest commercial banking information needed to determine and enforce compliance organization in the United States, controlling approxi- with the BHC Act.5 In cases involving interstate bank mately 2.5 percent of total banking assets of insured com- acquisitions, the Board also must consider the concentramercial banks in the United States ("total banking as- tion of deposits nationwide and in certain individual states sets").4 Fleet operates depository institutions in on consummation of the proposal, as well as compliance Connecticut, Florida, Maine, Massachusetts, New Hamp- with other provisions of the Riegle-Neal Interstate Banking shire, New Jersey, New York, and Rhode Island. Fleet also and Branching Efficiency Act of 1994 ("Riegle-Neal engages in a broad range of permissible nonbanking activi- Act").6 ties nationwide. BankBoston, with total consolidated assets of approxi- Public Comment on the Proposal mately $73.5 billion, is the 15th largest commercial banking organization in the United States, controlling approxi- To give interested members of the public an opportunity to mately 1 percent of total banking assets. BankBoston submit comments to the Board on the statutory factors that operates subsidiary banks in Connecticut, Florida, Maine, it is charged with reviewing, the Board published notice of Massachusetts, New Hampshire, and Rhode Island. Bank- the proposal and provided a period of time for public Boston also engages nationwide in numerous permissible comment.7 The Board extended the initial period for public nonbanking activities. comment to accommodate the public interest, providing As discussed more fully below, Fleet has proposed to interested parties more than 54 days to submit written divest branches controlling more than $13 billion in depos- comments on the proposal. its and associated assets in connection with the proposal to Because of public interest in the proposal, particularly in address the potential effects of the proposal on competition New England where the combined organization would be a in various markets in Massachusetts, Connecticut, and significant competitor, the Board also held a public meet- Rhode Island. After accounting for the proposed divesti- ing on the proposal in Boston, Massachusetts, on July 7, tures, the proposal would create a combined organization 1999. The public meeting gave interested persons an opthat would be the eighth largest commercial banking orga- portunity to present oral testimony on the various factors nization in the United States, with total consolidated assets the Board is charged with reviewing under the BHC Act. of approximately $164.9 billion, representing approxi- Approximately 150 people testified at the public meeting, mately 3.5 percent of total banking assets. The combined and many persons who testified also submitted written organization would operate under the name Fleet Boston comments. In total, approximately 344 individuals and organizations submitted comments on the proposal through oral testimony, written comments, or both. Commenters included several members of the U.S. Congress; state and 1. Fleet also would acquire BankBoston's other subsidiary banks: local government officials; community groups and educa- BankBoston of Florida, N.A., Boca Raton, Florida; and BankBoston Maine, N.A., Portland, Maine. 2. The nonbanking activities of BankBoston for which Fleet has sought approval under section 4 of the BHC Act and the subsidiaries 5. In cases involving a foreign bank, the Board also must consider engaged in these activities are listed in Appendix A. whether the foreign bank is subject to comprehensive supervision or 3. Fleet and BankBoston also have requested the Board's approval regulation on a consolidated basis by appropriate authorities in the to hold and exercise stock purchase options that allow Fleet to foreign bank's home country. purchase up to 19.9 percent of BankBoston's common stock and 6. Pub. L. No. 103-328, 108 Stat. 2338 (1994). BankBoston to purchase up to 19.9 percent of Fleet's common stock if 7. Notice of the proposal was published in the Federal Register (64 certain events occur. Fleet and BankBoston would not exercise these Federal Register 27,990 (1999)) and in local newspapers in accoroptions if the merger is consummated. dance with the Board's Rules of Procedure. See 12 C.F.R. 262.3(b). 4. Asset data and rankings are as of December 31, 1998. Notice of the proposal also was listed on the Board's website. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 749 tional and nonprofit organizations; small business owners depository institutions in any state in which both the appliand groups concerned with business issues; customers of cant and the organization to be acquired operate an insured Fleet and BankBoston; organizations interested in purchas- depository institution, or such higher or lower percentage ing divested assets; union representatives; and other inter- established by state law.11 ested organizations and individuals. Comments were sub- On consummation of the proposal, Fleet Boston would mitted by organizations, individuals, and representatives control approximately 2.8 percent of the total amount of from Connecticut, Maine, Massachusetts, New Hampshire, deposits held by insured depository institutions in the New Jersey, New York, Rhode Island, and other states. United States. Fleet Boston would control less than 30 Commenters filed information and expressed views sup- percent, or the appropriate percentage established by appliporting and opposing the merger. cable state law, of total deposits held by insured depository In evaluating the statutory factors under the BHC Act, institutions in Connecticut, Florida, Maine, Massachusetts the Board carefully considered the information and views and New Hampshire, the states in which Fleet currently presented by all commenters, including the testimony pre- operates a bank or branch and, on consummation of the sented at the public meeting and the information submitted proposal, would assume additional deposits.12 All other in writing. The Board also considered all the information requirements of section 3(d) of the BHC Act also would be presented in the application, notices, and supplemental met after consummation of the proposal.13 In view of all filings by Fleet and BankBoston, and various reports filed the facts of record, the Board is permitted to approve the by the relevant companies, publicly available information, proposal under section 3(d) of the BHC Act. and other reports. In addition, the Board reviewed confidential supervisory information, including examination re- Competitive Factors ports regarding the bank holding companies and the depository institutions involved, and information provided by Section 3 of the BHC Act prohibits the Board from approvother federal banking agencies and the Department of ing an application if the proposal would result in a monop- Justice. After a careful review of all the facts of record, and oly or would be in furtherance of any attempt to monopofor the reasons discussed in this order, the Board has lize the business of banking. The BHC Act also prohibits concluded that the statutory factors it is required to con- the Board from approving a proposed combination that sider under the BHC Act and other relevant banking stat- would substantially lessen competition or tend to create a utes are consistent with approval of the proposal, subject to monopoly in any relevant banking market, unless the Board the conditions noted in this order. finds that the anticompetitive effects of the proposal are clearly outweighed in the public interest by the probable Interstate Analysis effect of the proposal in meeting the convenience and needs of the community to be served.14 Section 3(d) of the BHC Act, as amended by section 101 of The proposed merger of Fleet and BankBoston would the Riegle-Neal Act, allows the Board to approve an appli- combine two banking organizations that are among the cation by a bank holding company to acquire control of a largest providers of banking services in a number of marbank located in a state other than the home state of the kets in Connecticut, Massachusetts, New Hampshire, and bank holding company if certain conditions are met. For Rhode Island. The Board has carefully analyzed the effect purposes of the BHC Act, the home state of Fleet is Rhode of the transaction on competition in the relevant banking Island,8 and BankBoston's subsidiary banks are located in Connecticut, Florida, Maine, Massachusetts, New Hampshire and Rhode Island.9 Section 3(d) of the BHC Act provides that the Board 11. 12 U.S.C. § 1842(d)(2)(B)-(D). may not approve a proposal if, after consummation, the 12. On consummation, Fleet Boston would control less than 30 percent of total deposits in insured depository institutions in Connectapplicant would control more than 10 percent of the total icut, Florida, Maine, and Massachusetts. See Conn. Gen. Stat. deposits of insured depository institutions in the United § 36a-411 (West 1999); Fla. Stat. Ann. § 658.295(8)(b) (West 1999); States.10 In addition, the Board may not approve a proposal Me. Rev. Stat. Ann. Tit. 9B, § 375 (West 1999); Mass. Gen. Laws ch. if, on consummation of the proposal, the applicant would 167A, § 2 (West 1999). The appropriate deposit cap in New Hampcontrol 30 percent or more of the total deposits of insured shire is set by New Hampshire state law at 20 percent, and Fleet Boston would not, on consummation of the proposal, exceed this limit. See N.H. Rev. Stat. Ann. § 384:58(11) (West 1999). In Fleet's home state of Rhode Island, Fleet proposes to divest the entire 8. See 12 U.S.C. § 1842(d). A bank holding company's home state banking operations of BankBoston on consummation of the proposal, is the state in which the total deposits of all banking subsidiaries of and thus its deposit share in the state would remain unchanged. such company were largest on July 1, 1966, or the date on which the 13. Fleet is adequately capitalized and adequately managed as company became a bank holding company, whichever is later. defined in the Riegle-Neal Act. 12 U.S.C. § 1842(d)(1)(A). BankBos- 9. For purposes of the Riegle-Neal Act, the Board considers a bank ton's subsidiary banks have been in existence and operated for the to be located in the states in which the bank is chartered or headquar- minimum periods of time necessary to satisfy the minimum age tered or operates a branch. See 12 U.S.C. §§ 1841(o)(4)-(7) and requirements established by applicable state law. See 12 U.S.C. 1842(d)(1)(A) and (d)(2)(B). § 1842(d)(1)(B). The Board also has contacted the relevant state 10. 12 U.S.C. § 1842(d)(2)(A). For this purpose, insured depository banking commissioners regarding, and considered Fleet's record of institutions include all insured banks, savings banks, and savings compliance with, applicable state community reinvestment laws. associations. 14. 12 U.S.C. § 1842(c)(1). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
750 Federal Reserve Bulletin • November 1999 markets in light of all the facts of record, including public Fleet has proposed to transfer substantially all of the comments on the proposal. branches and ATMs to be divested to a single out-of- A number of commenters contended that the proposal market competitor. Based on all the facts of record, it would have a beneficial effect on competition in New appears that the purchaser would have sufficient scale, England by preserving a large bank headquartered in New expertise, and dedicated resources to compete effectively in England, which these commenters believed would under- serving the credit needs of large and mid-sized businesses, stand and be responsive to the needs of New England while also providing banking products and services to customers and would have the resources to offer sophisti- individuals and small businesses. cated products and services in the region. Some comment- In addition, Fleet proposes to sell approximately 30 ers contended that the divestitures proposed by Fleet would branches in Massachusetts to several smaller commercial assure adequate competition by creating an additional large banking organizations that currently operate in the area in competitor in New England and, especially to the extent which they would acquire the divested branches. Based on divestitures were made to smaller banking organizations, all the facts of record, these smaller purchasers also appear also would strengthen competition in various local banking to be capable of competing effectively in the areas where markets. their acquisitions would occur.18 The sale of branches to Other commenters asserted that the proposed merger these smaller competitors should not impede the ability of would have significantly adverse effects on competition the larger purchaser to compete effectively with Fleet Bosthroughout New England. A number of commenters ex- ton for large and mid-sized business customers or retail pressed concern that the merger would reduce the banking customers. options available to consumers and businesses. Various commenters also feared that the combined organization A. Definition of Banking Markets would charge higher fees, offer fewer products and services, and provide less convenient access to banking ser- In order to determine the effect of a particular transaction vices. Some commenters expressed particular concern that on competition, it is necessary to designate the area of the combined organization would reduce its home mort- effective competition between the parties, which the courts gage and small business lending and that other competitors have held is decided by reference to the relevant "line of would not be available to compensate for that loss. Other commerce" or product market and a geographic market. commenters stressed the importance of using the divesti- As discussed above, some commenters suggested that the ture process to ensure competition for loans to mid-sized competitive analysis should focus on the impact of the businesses; these commenters often suggested that the ap- merger on mid-sized businesses, small businesses, or other propriate geographic market for analyzing the effect of the customers. Commenters also contended that the relevant merger on competition for such loans is statewide or re- geographic market for analyzing this merger should be gional in scope. variously defined as regional, statewide, multicity, or intra- In order to address the competitive effects of the pro- city. posal, Fleet has proposed to divest more than 300 branches Product Market. The Board and the courts consistently located in Massachusetts, Connecticut, and Rhode Island, have recognized that the appropriate product market for controlling combined deposits of approximately $13 bil- analyzing the competitive effects of bank mergers and lion.15 In several of the largest markets in which Fleet and acquisitions is the cluster of products (various kinds of BankBoston branches overlap, including Boston, Cape credit) and services (such as checking accounts and trust Cod, and Worcester, Massachusetts; Hartford, Connecticut; administration) offered by banking institutions.19 Accordand Newport and Providence, Rhode Island, Fleet proposes ing to the Supreme Court, the clustering of banking prodto divest all or substantially all the branches of Fleet or ucts and services facilitates convenient access to these Bank Boston, whichever has the smaller market share in products and services, and vests the cluster with economic the market.16 If the divested branches were viewed as a significance beyond the individual products and services stand-alone institution, they would constitute the third largest commercial bank in Massachusetts and in Rhode Island and the ninth largest commercial bank in Connecticut.17 18. Each of the acquiring financial institutions would be required to Fleet also would divest approximately 550 automated teller file an application with the appropriate federal financial supervisory machines ("ATMs") located in Connecticut, Massachuauthority, which would address the competitive effects of the proposed setts, New Hampshire, and Rhode Island. acquisition, the managerial and financial resources of the acquiror, the effect of the acquisition on the convenience and needs of the community to be served, and other relevant factors. 15. Deposit data are as of June 30, 1998. 19. See Chemical Banking Corporation, 82 Federal Reserve Bulle- 16. In general, Fleet would divest Fleet branches in Massachusetts tin 239 (1996) ("Chemical"), and the cases and studies cited therein. and New Hampshire and BankBoston branches in Connecticut and The Supreme Court has emphasized that it is the cluster of products Rhode Island. and services that, as a matter of trade reality, makes banking a distinct 17. Fleet proposes to divest 204 branches with $8.5 billion of line of commerce. See United States v. Philadelphia National Bank, deposits in Massachusetts; 50 branches with $2.2 billion of deposits in 374 U.S. 321, 357 (1963) ("Philadelphia National"); accord United Rhode Island; 39 branches with $1.8 billion of deposits in Connecti- States v. Connecticut National Bank, 418 U.S. 656 (1974); United cut; and 13 branches with $500 million of deposits in New Hamp- States v. Phillipsburg National Bank, 399 U.S. 350 (1969) ("Phillipsshire. burg National"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 751 that constitute the cluster.20 Several studies support the B. Analysis of Local Banking Markets conclusion that both businesses and households continue to seek this cluster of services.21 Consistent with these prece- The Board has carefully reviewed the competitive effects dents and studies, and on the basis of the facts of record in of the proposal in each of these banking markets in light of this case, the Board concludes that the cluster of banking all the facts of record, including the characteristics of the products and services represents the appropriate product markets and the projected increase in the concentration of market for analyzing the competitive elFects of the pro- total deposits in depository institutions in these markets posal. ("market deposits"),25 as measured by the Herfindahl- Geographic Market. In defining the relevant geographic Hirschman Index ("HHI") under the Department of Justice market, the Board consistently has sought to identify the Merger Guidelines ("DOJ Guidelines").26 area in which the cluster of products and services is pro- Banking Markets without Divestitures. Consummation vided by competing institutions and in which purchasers of of the proposal without divestitures would be consistent the products and services seek to obtain these products and with Board precedent and the DOJ Guidelines in six bankservices.22 In applying these standards to bank acquisition ing markets: Fairfield Area and New London, Connecticut; proposals, the Board and the courts repeatedly have held West Palm Beach, Florida; Portland, Maine; Greenfield, that the geographic market for the cluster of banking Massachusetts; and Manchester, New Hampshire.27 After products and services is local in nature.23 In delineating the consummation of the proposal, the Fairfield, New London, relevant geographic market in which to assess the competi- and West Palm Beach banking markets would remain tive effects of a banking merger or acquisition, the Board moderately concentrated as measured by the HHI. In the reviews population density; worker commuting patterns; Portland, Greenfield, and Manchester banking markets, advertising patterns of financial institutions; the presence banking resources would be highly concentrated as meaof shopping, employment, healthcare, and other necessi- sured by the HHI, but the increase in concentration would ties; and other indicia of economic intergration and the be within the DOJ Guidelines and a large number of transmission of competitive forces among banks.24 competitors would remain in each market. Moreover, all of In applying these principles, the Federal Reserve Bank the latter three markets are located in metropolitan areas of Boston (the "Reserve Bank") has employed a methodol- that are regionally important and are considered generally ogy that defines the retail banking market by identifying a attractive for entry. market core as cities or counties that contain substantial Banking Markets with Proposed Divestitures. Fleet has employment opportunities and then grouping surrounding proposed divestitures in the remaining twelve markets in areas with significant patterns of commuting to and other which Fleet and BankBoston compete: Hartford, New Haindicia of economic integration with these market cores. ven, Torrington, and Waterbury, Connecticut; Boston, Cape The criteria for adding communities to the market delinea- Cod, Fall River, New Bedford, Springfield, and Worcester, tion become more stringent as the counties become more Massachusetts; and Newport and Providence, Rhode Isremote from the core. Following this approach, the Re- land.28 As discussed above, these divestitures include a serve Bank has identified 18 local banking markets in six states in which Fleet and BankBoston compete. Based on this analysis, and all the facts of record, 25. In this context, depository institutions include commercial including population density, commuting patterns, and banks, savings banks, and savings associations. Market share data are based on calculations that include the deposits of thrift institutions at other commercial patterns throughout the region in which 50 percent. The Board previously has indicated that thrift institutions Fleet and BankBoston compete, the Board concludes that have become, or have the potential to become, significant competitors the appropriate geographic markets for considering the of commercial banks. See, e.g., Midwest Financial Group, 75 Federal competitive effects of the proposal are these 18 local bank- Reserve Bulletin 386 (1989); National City Corporation, 70 Federal ing markets, which are described in Appendix B. Reserve Bulletin 743 (1984). Thus, the Board regularly has included thrift deposits in the calculation of market share on a 50-percent weighted basis. See, e.g., First Hawaiian, Inc., 11 Federal Reserve Bulletin 52 (1991). 20. See Phillipsburg National, 399 U.S. at 361. 26. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), 21. See Elliehausen and Wolken, Banking Markets and the Use of a market is considered unconcentrated if the post-merger HHI is less Financial Services by Households, 78 Federal Reserve Bulletin 169 than 1000, moderately concentrated if the post-merger HHI is between (1992); Elliehausen and Wolken, Banking Markets and the Use of 1000 and 1800, and highly concentrated if the post-merger HHI is Financial Services by Small- and Medium-Sized Businesses, 76 Fed- more than 1800. The Department of Justice has informed the Board eral Reserve Bulletin 726 (1990). that a bank merger or acquisition generally will not be challenged (in 22. See, e.g., Sunwest Financial Services, Inc., 73 Federal Reserve the absence of other facts indicating anticompetitive effects) unless the Bulletin 463 (1987); Pikeville National Corporation, 71 Federal Re- post-merger HHI is at least 1800 and the merger increases the HHI by serve Bulletin 240 (1985); Wyoming Bancorporation, 68 Federal more than 200 points. The Department of Justice has stated that the Reserve Bulletin 313 (1982), aff'd 729 F.2d 687 (10th Cir. 1984). higher than normal HHI thresholds for screening bank mergers for 23. See Philadelphia National, 374 U.S. at 357; Phillipsburg Na- anticompetitive effects implicitly recognize the competitive effect of tional; First Union Corporation, 84 Federal Reserve Bulletin 489 limited-purpose lenders and other nondepository financial institutions. (1998); Chemical; St. Joseph Valley Bank, 68 Federal Reserve Bulle- 27. The effects of the proposal on the concentration of banking tin 673 (1982) ("St. Joseph"). resources in these markets are described in Appendix C. 24. See Crestar Bank, 81 Federal Reserve Bulletin 200, 201 n.5 28. The effects of the proposed merger and divestitures on the (1995); Pennbancorp, 69 Federal Reserve Bulletin 548 (1983); St. concentration of banking resources in these markets are described in Joseph; Chemical. Appendix D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
752 Federal Reserve Bulletin • November 1999 total of more than 300 branches, which account for more change in concentration that would result from the transacthan $13 billion in deposits.29 In each of these markets, tion; the number, size, and relative resources of competi- Fleet proposes to divest a significant portion of the hold- tors remaining in each market; and the structure, characterings of either Fleet or BankBoston.30 After accounting for istics, and attractiveness of each market. The Board also the proposed divestitures, consummation of the proposal has carefully weighed the divestitures proposed by Fleet to would be consistent with Board precedents and the DOJ address the potential competitive effects in various mar- Guidelines in all twelve markets in which Fleet has pro- kets. posed divestitures. Moreover, a large number of competi- After carefully reviewing all the facts of record, includtors would remain in each of these markets, and the mar- ing public comments on the competitive effects of the kets, many of which are in large metropolitan areas, are proposal, and for the reasons discussed in this order and its generally attractive for entry. appendices, the Board concludes that consummation of the proposal would not be likely to result in a significantly C. Views of Other Agencies and Conclusion adverse effect on competition or on the concentration of banking resources in any of the 18 markets in which Fleet The Department of Justice has conducted a detailed review and BankBoston both compete, or in any other relevant of the proposal and advised the Board that, in light of the banking market.31 Accordingly, based on all the facts of proposed divestitures, consummation of the proposal likely record and subject to completion of the proposed divestiwould not have a significantly adverse effect on competi- tures, the Board has determined that competitive factors tion in any relevant banking market. The Office of the are consistent with approval of the proposal. Comptroller of the Currency ("OCC") and the Federal Deposit Insurance Corporation ("FDIC") have been af- Financial, Managerial, and Other Supervisory Factors forded an opportunity to comment and have not objected to consummation of the proposal. The Board has carefully considered the financial and man- As discussed in this order, the Board has considered the agerial resources and future prospects of Fleet, BankBoscompetitive effects of the proposal in each banking market ton, and their respective subsidiary banks in light of all the in light of a number of factors that measure or influence the facts of record. In considering the financial and managerial likely competitive effects of the proposed transaction. factors, the Board has reviewed relevant reports of exami- These factors include the relative market share that would nation and other information prepared by the Reserve Bank be controlled by the combined organization in each rele- and other federal financial supervisory agencies. The Board vant banking market; the level of market concentration and also has reviewed information on the programs that Fleet and BankBoston have implemented to prepare their systems for the Year 2000, including confidential examination 29. In each market in which Fleet has committed to divest offices to and supervisory information assessing the efforts of the mitigate the anticompetitive effects of the proposal, Fleet has commit- two banking organizations to ensure Year 2000 readiness, ted to execute, before consummation of the proposal, sales agreements both before and after consummation of the proposed transfor the proposed divestitures with a purchaser determined by the action. Board to be competitively suitable, and to complete the divestitures within 180 days of consummation of the proposal. Fleet also has In evaluating financial factors in expansion proposals by committed that, if it is unsuccessful in completing any divestiture bank holding companies, the Board consistently has conwithin 180 days of consummation, it will transfer the unsold branch- sidered capital adequacy to be an especially important es) to an independent trustee that is acceptable to the Board and will factor.32 The Board notes that Fleet and BankBoston and instruct the trustee to sell the branch(es) promptly to one or more alternative purchasers acceptable to the Board. See BankAmerica their subsidiary banks are well capitalized and would re- Corporation, 78 Federal Reserve Bulletin 338 (1992); United New main so on consummation of the proposal. Both institu- Mexico Financial Corporation, 11 Federal Reserve Bulletin 484 tions have reported strong earnings. The Board has consid- (1991). Fleet also has committed to submit to the Board, before ered that the proposed merger is structured as a stock-forconsummation of the proposal, an executed trust agreement acceptable to the Board stating the terms of these divestitures. 30. Many commenters expressed concern about the divestiture process, particularly with regard to the role that community banks should play in that process. Numerous commenters believed that 31. One commenter expressed concern about the method by which community banks should be allowed to purchase a portion of the the Board determines appropriate levels of divestitures and the divested branches in order to increase their market presence and Board's use of mitigating factors. The commenter presented an alterensure local control of lending and investment decisions. Other com- native approach to assess the competitive effects of the merger promenters believed that all the divested assets should be transferred to a posal, which the commenter has presented to the Board in other large banking organization that could immediately serve as a viable merger proposals. For the reasons previously stated by the Board, the competitor for the combined organization, especially with regard to Board concludes that its current approach provides a more complete competition for lending to mid-sized businesses. As noted above, the economic analysis of the competitive effects of a proposal in a local proposed divestitures involve the sale of a portion of the branches in banking market than the approach suggested by the commenter. See Massachusetts to community banks and the sale of the vast majority of NationsBank Corporation, 84 Federal Reserve Bulletin 129 (1998); assets and branches to a large out-of-market competitor. The BHC Act see also Norwest Corporation, 84 Federal Reserve Bulletin 1088 charges the Board with reviewing and acting on the competitive (1998). effects of the proposal submitted by the applicant, without regard to 32. See, e.g., Banc One Corporation, 84 Federal Reserve Bulletin whether alternative proposals might also meet the competitive stan- 961 (1998); see also, Norwest Corporation, 84 Federal Reserve dards in the Act. Bulletin 1088 (1998). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 753 stock transaction and would not increase the debt service Summary of Public Comments Regarding the requirements of the combined company. Convenience and Needs Factor The Board also has considered the managerial resources of the entities involved and the proposed combined organi- As noted above, the Board provided an extended public zation. Fleet, BankBoston, and their subsidiary depository comment period and convened a public meeting in Boston institutions currently are well managed, and the combined to aid in the collection of information on the aspects of the organization would have appropriate risk management pro- proposed merger that the Board is required to consider cesses in place. Senior management of the combined orga- under the BHC Act and other relevant statutes. Approxinization would draw from the senior executives of Fleet mately 344 interested persons submitted written comments and BankBoston, based on the individual management or testified at the public meeting about various aspects of strengths of each company. Senior executives of the two the proposal and, in particular, the effect of the proposal on companies also have formed a transition team to plan and the convenience and needs of the affected communities and manage the integration of the bank holding companies and the CRA performance records of the depository institutions their subsidiaries. Fleet and BankBoston have past experi- involved. ence with merger transactions and have indicated that they Approximately 97 commenters either expressed support are devoting significant resources to address all aspects of for the proposal or commented favorably on the CRAthe merger process.33 related activities of Fleet and BankBoston.34 Many com- In addition, the Board has considered other aspects of menters commended Fleet and BankBoston for providing the financial condition and managerial resources of the two affordable home mortgages and home improvement loans; organizations, including the Board's extensive supervisory offering financial and technical support to small businesses, experience with Fleet and BankBoston; recent revisions by including small businesses and micro-enterprises owned by BankBoston of its management of operating risks; plans women and minorities; sponsoring and supporting a variety for integration of the two companies; plans for achieving of community development activities and affordable hous- Year 2000 readiness; and records of compliance with rele- ing initiatives; and participating in a number of programs vant banking laws. Based on all the facts of record, includ- designed to assist and benefit LMI communities and indiing a careful review of the comments received, the Board viduals. The commenters praised officers and employees of concludes that considerations relating to the financial and Fleet and BankBoston for the service and expertise that the managerial resources and future prospects of Fleet, Bank- staff members of the two banking organizations provide to Boston, and their respective subsidiaries are consistent civic and community groups as board members and volunwith approval of the proposal, as are the other supervisory teers.35 Commenters also related favorable experiences factors that the Board must consider under section 3 of the BHC Act. 34. These commenters included: Convenience and Needs Considerations (1) Three members of the Rhode Island delegation to the U.S. Congress; (2) Various community groups, including Dorchester Bay Eco- In acting on the proposal, the Board also must consider the nomic Development Corporation, Dorchester, Massachusetts; convenience and needs of the communities to be served Pine Street Inn, Boston, Massachusetts; New York Housing and take into account the records of the relevant depository Partnership Development Corporation, New York, New York; Tompkins County Economic Opportunity Corporation, Ithaca, institutions under the CRA. The CRA requires the federal New York; National Association for the Advancement of financial supervisory agencies to encourage financial insti- Colored People, Portland, Maine, chapter; Urban League of tutions to help meet the credit needs of local communities Rhode Island, Providence, Rhode Island; and Manchester in which they operate, consistent with their safe and sound Neighborhood Housing Services, Manchester, New Hampoperation, and requires the appropriate federal supervisory shire; (3) Various groups supporting the development and growth of authority, in evaluating bank expansion proposals, to take small businesses, including The Center for Women in Enterinto account an institution's record of meeting the credit prise, Boston, Massachusetts; Mercer County Business Assoneeds of the entire community, including low- and ciation, Mercer County, New Jersey; Association of Hispanic moderate-income ("LMI") neighborhoods. The Board has Entrepreneurs of New Britain, New Britain, Connecticut; New carefully considered the convenience and needs factor and Hampshire Business Development Corporation, Manchester, New Hampshire; and New York State Small Business Develthe CRA performance records of the subsidiary depository opment Center, Farmingdale, New York; and institutions of Fleet and BankBoston in light of all the facts (4) Representatives of other community, civic, and nonprofit orgaof record, including public comments on the proposal. nizations based in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, and Rhode Island. 35. Some commenters supported the proposal because it would result in a large banking organization headquartered in New England, which would provide local jobs and help maintain local control over banking and investment decisions relevant to the region. These commenters included: 33. One commenter questioned whether Fleet has exercised due (1) Twelve members of the Massachusetts delegation to the U.S. diligence in reviewing the operations of BankBoston. Based on all the Congress; facts of record, the Board considers the managerial resources of Fleet (2) A number of state and local government officials, including to be appropriate for Fleet to evaluate the proposed acquisition. the governors of Massachusetts and New Hampshire; the state Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
754 Federal Reserve Bulletin • November 1999 with specific programs and services offered by Fleet and A number of the commenters opposed to the merger BankBoston. Several owners of small businesses stated proposal contended that Fleet has an inadequate record of that Fleet had offered credit and technical assistance to performance under the CRA, particularly in serving the them when other financial institutions were unwilling to do banking and credit needs of LMI and minority individuals so. and of census tracts with predominantly LMI and minority Approximately 247 commenters opposed the proposal or populations.38 Commenters also criticized the lending requested that the Board approve the merger subject to record of Fleet, as reflected by data reported under the conditions suggested by the commenter.36 These comment- Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.) ers either expressed specific concerns about the CRA per- ("HMDA"). Several commenters alleged that Fleet denied formance records of Fleet and BankBoston, expressed gen- loan applications from minorities at a higher rate than it eral concerns regarding the effects of large merger denied applications from white borrowers, and that outproposals on the convenience and needs of the communi- reach efforts by Fleet in LMI and minority communities ties to be served, or expressed dissatisfaction with specific did not account for this disparity. transactions involving the commenter and one of the banks Various commenters alleged that Fleet's lending, particinvolved in the proposal.37 ularly its home mortgage lending to LMI and minority individuals, had declined in the past after Fleet acquired other banking organizations. Many of these commenters treasurer of Connecticut; the attorneys general of Connecticut and Massachusetts; the mayors of Boston and Springfield, claimed that HMDA data indicated that Fleet's post-merger Massachusetts; Connecticut and Massachusetts state legisla- lending was significantly less than the pre-merger comtors; and members of the Boston City Council and the New bined lending of Fleet and the institutions it acquired. York City Council; These commenters feared that a similar decline in lending (3) Various community groups, including the national office of would occur after Fleet's proposed acquisition of Bankthe Association of Community Organization for Reform Now ("ACORN") and regional offices of ACORN in Dorchester, Boston. Some commenters were further concerned, in view Mattapan, and Roslindale, Massachusetts; New York, New of the large share of housing-related lending in New En- York; and Bridgeport, Connecticut; Massachusetts Affordable gland controlled by Fleet and BankBoston, that a decrease Housing Alliance, Dorchester, Massachusetts; various comin lending by the combined organization would have a dispromenters affiliated with the Massachusetts Association of Comportionately harmful effect on the availability of loans to munity Development Corporations, Boston, Massachusetts; Rhode Island Community Reinvestment Association, Provi- LMI and minority individuals and small businesses. dence, Rhode Island; Inner City Press/Community on the Many commenters also believed that BankBoston had a Move, Bronx, New York; Delaware Community Reinvestbetter record than Fleet of meeting the convenience and ment Action Council, Inc., Wilmington, Delaware; and repreneeds of the community, and expressed concern about the sentatives of other community and nonprofit organizations based in Connecticut, Florida, Massachusetts, New Hamp- loss of the BankBoston organization and its expertise and shire, New Jersey, New York, Rhode Island, and Texas; and products in CRA-related lending and investments. Several (4) A number of individual customers, unions, and others. individual commenters were similarly concerned that Fleet 36. These commenters included: would be less accommodating than BankBoston in provid- (1) Twelve members of the Massachusetts delegation to the U.S. Congress; ing customer service. (2) A number of state and local government officials, including Numerous commenters expressed concern about the the governors of Massachusetts and New Hampshire; the state combined organization's CRA plans for the future.39 Comtreasurer of Connecticut; the attorneys general of Connecticut menters also criticized Fleet's decision not to enter into and Massachusetts; the mayors of Boston and Springfield, community reinvestment agreements with specific commu- Massachusetts; Connecticut and Massachusetts state legislators; and members of the Boston City Council and the New nity organizations and local government agencies.40 These York City Council; commenters asked the Board to require Fleet and Bank- (3) Various community groups, including the national office of Boston to provide specific details on how the combined the Association of Community Organization for Reform Now organization would implement its CRA pledge to establish ("ACORN") and regional offices of ACORN in Dorchester, Mattapan, and Roslindale, Massachusetts; New York, New York; and Bridgeport, Connecticut; Massachusetts Affordable Housing Alliance, Dorchester, Massachusetts; various commenters affiliated with the Massachusetts Association of Community Development Corporation, Boston, Massachusetts; 38. Several commenters also expressed concern about Fleet's record Rhode Island Community Reinvestment Association, Provi- of serving rural communities, and one commenter alleged that Fleet dence, Rhode Island; Inner City Press/Community on the redlined rural areas of New Hampshire. Move, Bronx, New York; Delaware Community Reinvest- 39. Commenters criticized Fleet's pledge to provide $14.6 billion ment Action Council, Inc., Wilmington, Delaware; and repre- toward community lending and development over the next five years sentatives of other community and nonprofit organizations as being inadequate compared to the historical level of combined based in Connecticut, Florida, Massachusetts, New Hamp- community development and lending activities by Fleet and BankBosshire, New Jersey, New York, Rhode Island, and Texas; and ton and the asset size of the combined organization. Many comment- (4) A number of individual customers, unions, and others. ers also asserted that Fleet's pledge lacked necessary detail and was 37. Some commenters claimed, for example, that large, multistate not equitably distributed to communities outside Massachusetts. banking organizations engage in less community oriented lending, 40. Several commenters asserted that Fleet's lending and commurelative to their size and total lending activities, than small banks. nity development efforts in the past were inadequate except when Commenters also feared that the combined organization would charge Fleet worked with a community-based partner or was subject to an higher fees for and reduce the availability of certain banking services. enforceable community reinvestment agreement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 755 a mechanism to enforce the CRA pledge that included February 1998. BankBoston's lead subsidiary bank, Bankcommunity representation, and to enter into detailed, veri- Boston, N.A., Boston, Massachusetts, which represents fiable, and enforceable written agreements with local com- approximately 90 percent of the assets controlled by Bankmunity groups. Boston, received an "outstanding" rating from the OCC at Some commenters also expressed concerns about the its most recent examination, as of December 1996 45 Bankimpact of the proposed branch divestitures on the commu- Boston's other subsidiary bank, Bank of Boston-Florida, nities served by Fleet and BankBoston. Many of these N.A., Boca Raton, Florida, received a "satisfactory" rating commenters feared that the sale of these branches to a large for CRA performance from the OCC, as of December out-of-state banking organization would result in the loss 1996 46 of local control over lending decisions, reduced sensitivity by bank management to community needs, decreased lev- C. CRA Policies and Programs els of service, and higher banking and credit-related fees.41 Several commenters stated that certain branches that Fleet Fleet has indicated that achieving outstanding CRA ratings proposed to divest were critical in providing banking ser- for all of its subsidiary banks would be a corporate goal for vices to underserved LMI and minority communities or the combined organization. To reach this goal, Fleet has were subject to agreements to maintain services, and they indicated that the combined organization would maintain sought assurances that the purchaser of these branches the respective strengths and adopt the best CRA policies, would not close them or reduce their services.42 Other products, and practices, of Fleet and BankBoston and honor commenters feared job losses at the divested branches after and reaffirm their respective commitments in CRA-related their sale. activities. For example, Fleet Boston proposes to adopt the community development policies and programs of Bank- B. CRA Performance Examinations Boston, including in particular the First Community Bank model for community banking and the BankBoston Devel- The Board has long held that consideration of the conve- opment Company model for community development lendnience and needs factor includes a review of the records of ing and investments. The Board expects that Fleet Boston the relevant depository institutions under the CRA. As would implement policies and programs that help to adprovided in the CRA, the Board has evaluated the conve- dress the credit and banking needs of local communities, nience and needs factor in light of examinations of the including LMI neighborhoods. CRA performance records of the relevant institutions by the appropriate federal financial supervisory agency.43 D. Fleet's CRA Performance Record All of Fleet's subsidiary banks received "satisfactory" ratings at the most recent examinations of their CRA Fleet Bank Overview. Fleet Bank operates in Massachuperformance.44 In particular, Fleet National Bank, Provi- setts, Connecticut, portions of upstate New York, and dence, Rhode Island ("Fleet Bank"), which represents Rhode Island.47 During 1996 and 1997, the bank made approximately 73 percent of the assets controlled by Fleet, received a "satisfactory" rating from the OCC, as of 45. At the time of this examination, the bank was named The First National Bank of Boston ("FNB Boston"). BankBoston changed the 41. Many of these commenters urged the Board to require Fleet to name of the bank and merged several banks into FNB Boston after divest branches to community banks, and some commenters particu- this examination. Each bank that was merged into FNB Boston also larly recommended that a minority-owned banking organization be had received an "outstanding" rating for CRA performance at its last allowed to purchase divested branches. examination before the merger. The names of the banks and the dates 42. Several commenters asserted that a seasonal branch of Bank- of their last examinations are: Bank of Boston Connecticut, Hartford, Boston located in Woods Hole, Massachusetts, did not provide ade- Connecticut ("BankBoston-CT"), examined by the FDIC, as of June quate service, and requested that the Board require Fleet to divest the 1994; Rhode Island Hospital Trust National Bank, Providence, Rhode branch to a community bank or close the branch and allow another Island ("Hospital Trust"), examined by the OCC, as of December bank to operate full-time on the premises. 1996; BayBank, N.A., Boston, Massachusetts, examined by the OCC, 43. The Interagency Questions and Answers Regarding Community as of March 1996; and BayBank NH, National Association, Nashua, Reinvestment provide that an institution's most recent CRA perfor- New Hampshire, examined by the OCC, as of May 1994. The most mance evaluation is an important consideration in the applications recent CRA performance examinations for FNB Boston, BankBostonprocess because it represents a detailed on-site evaluation of the CT, and Hospital Trust are discussed separately in this order. See also institution's overall record of performance under the CRA by the Bank of Boston Corporation, 82 Federal Reserve Bulletin 856, 859 appropriate federal financial supervisor. 64 Federal Register 23,618 (1996). and 23,641 (1999). 46. BankBoston Maine, N.A., Portland, Maine, provides only cash 44. Fleet Bank, N.A., Jersey City, New Jersey ("Fleet-NJ"), was management services to customers of BankBoston, N.A. examined by the OCC for CRA performance, as of February 1998; 47. At the time of its most recent CRA performance examination, Fleet Bank of New Hampshire, Manchester, New Hampshire ("Fleet- the bank owned several subsidiaries, of which the most significant for NH"), was examined by the Reserve Bank, as of April 1998; Fleet purposes of considering its CRA performance was Fleet Mortgage Bank of Maine, Portland, Maine, was examined by the Reserve Bank, Group, Inc., Columbia, South Carolina ("Fleet Mortgage"). In addias of April 1998; and Fleet Bank, F.S.B., Boca Raton, Florida, was tion, Fleet owned Fleet Community Development Corporation, Proviexamined by the Office of Thrift Supervision, as of April 1998. The dence, Rhode Island ("Fleet CDC"), which engaged in community OCC has not yet examined Fleet Bank-Rhode Island, N.A., Provi- development lending and investments. Home mortgage loans by Fleet dence, Rhode Island, a credit card bank established by Fleet in Mortgage and loans and investments by Fleet CDC and Fleet Bank's November 1997. affiliated banks that were made in Fleet Bank's assessment area were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
756 Federal Reserve Bulletin • November 1999 53,305 HMDA-reported loans, totaling $4.4 billion, and For small business lending, examiners reported that Fleet 27,827 loans to small businesses in amounts less than Bank was particularly active in Massachusetts and Con- $1 million ("small business loans"), totaling $4.2 billion, necticut, where the percentage of the bank's small business in its assessment area. Examiners considered Fleet Bank's loans in LMI census tracts was generally 3 percent to 4 lending performance to be particularly strong in making percent higher than the comparable percentage for lenders home purchase loans. In every state and in most metropoli- in the aggregate. Through the Fleet INCITY Business and tan statistical areas ("MSAs") in its assessment area, the Entrepreneurial Services Group, established to support percentage of the bank's loans made in LMI census tracts businesses in LMI areas, Fleet Bank offered small business was higher than the percentage of owner-occupied housing loans featuring reduced documentation, flexible underwritlocated in these census tracts and the percentage of home ing, and no minimum loan amount. Fleet CDC also suppurchase loans made in these census tracts by lenders in ported small businesses through low-interest loans, longerthe aggregate. The bank employed several programs to term loans, and equity investments in financial provide affordable home mortgage loans, including: intermediaries and nonprofit organizations that focused (1) Fleet's proprietary Affordable Housing program, their efforts on small businesses located in LMI areas. For which featured reduced downpayment require- example, in 1998, Fleet CDC made a $1 million investments, flexible underwriting standards, and no ment in the Boston Community Venture Fund for equity mortgage insurance requirement for borrowers un- investments in small businesses in LMI areas. Fleet Bank able to meet traditional secondary market credit also was an active lender through Small Business Adminisstandards; tration ("SBA") programs. Fleet was the largest SB A (2) Local partnership programs offered in cooperation lender in New England overall in 1997 and the second with organizations such as ACORN, Neighborhood largest in 1998. In 1999, Fleet reported that it began to Assistance Corporation of America ("NACA"), offer a new SBA express approval loan program, and the and Hartford Areas Rally Together ("HART"), bank made more SBA loans in the first six months of 1999 which were similar to Fleet's proprietary programs than it made in all of 1998. but offered more flexible underwriting standards Examiners also judged Fleet Bank's performance in and extensive financial and homebuyer counsel- making community development investments to be particing;48 ularly strong. In 1996 and 1997, the bank made $253 (3) Federal government-supported secondary market million of qualified investments and grants and committed programs, such as Federal Housing Administration to make an additional $269 million. The bank's two largest ("FHA") and Veterans Administration ("VA") forms of investment consisted of the purchase of $220 loans and the Federal National Mortgage Associa- million of bond anticipation notes to assist state and local tion ("Fannie Mae") Community Home Buyers governments in funding efforts to revitalize and stabilize program, which featured reduced downpayment re- economically depressed areas and the purchase of $60 quirements, flexible underwriting standards, and million of low-income housing tax credits. In addition, in flexible financing of closing costs; and 1997, Fleet Bank entered into an agreement with Neighbor- (4) State and local government-supported programs, hood Housing Services of America ("NHSA") to purchase such as the Jumpstart program in Massachusetts, up to $10 million of affordable first and second mortgages New York, and Rhode Island, which combined a and home improvement loans originated and underwritten first mortgage loan from a state housing finance by NHSA's local affiliates in Fleet's assessment area. Fleet authority with an unsecured loan from Fleet Bank Bank made an initial purchase under this program of at the same rate to cover down payment or closing $750,000 in 1998. The bank also committed to make grants costs.49 of $1.4 million of working capital over three years to NHSA's affiliated Neighbor Works Organizations to sup- Consumer lending by Fleet Bank also was distributed in a port neighborhood revitalization and affordable housing manner that generally corresponded to the distribution of development. In addition, in 1997 Fleet Bank made a grant the population, including LMI borrowers, in the bank's of $200,000 payable over three years to Local Initiatives service area. Support Corporation to support the participation of seven rural New England community development corporations in Maine, Massachusetts, New Hampshire, and upstate included by Fleet Bank for CRA purposes, and thus were included by New York in its programs. the OCC in its examination of Fleet Bank's CRA performance. According to examiners, Fleet Bank's branch network 48. Several commenters affiliated with ACORN and NACA stated and ATMs and its alternative delivery systems provided that their partnerships with Fleet and BankBoston had allowed underconsistent service and reached consumers in all geographic served LMI and minority individuals to obtain mortgage loans, which areas, and the products and services that the bank offered in turn had promoted economic growth and stability in poorer neighborhoods. However, these individuals criticized Fleet's decision not to were designed to serve all consumers, including LMI indirenew the ACORN and NACA partnerships, and opposed the proposal viduals. For example, the bank's Basic Checking program on this basis. allowed up to eight transactions per month for a minimal 49. Under the Jumpstart program, Fleet Bank made 2,173 loans in opening deposit and small monthly fee. Approximately 1998, totaling $254.1 million; 1,950 loans in 1997, totaling $202.7 600 companies participated in the bank's Workplace Bankmillion; and 3,338 loans in 1996, totaling $325.9 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 757 ing program, which provided basic banking services at $11.6 million, to organizations that promote economic reduced cost to approximately 53,000 households, includ- development by financing small businesses; and one loan ing LMI households.50 Fleet Bank also offered multilingual for $1.2 million to help provide medical and social services services through its branches, ATMs, and telephone bank- to LMI individuals. Examiners also commended Fleet ing system, which enhanced access to services for certain Bank for its qualified community development investment minority communities, and offered seminars for first-time in the state. During 1996 and 1997, the bank invested LMI homebuyers and small business owners. $220.9 million and provided grants of $3.2 million, and Massachusetts. Examiners commended Fleet Bank for committed to invest an additional $236.5 million and proits HMDA-reported lending in LMI areas. During the vide grants of an additional $3.5 million. In 1998, the bank examination period, the bank made 41 percent of its home made 24 community development loans, totaling $97 milpurchase loans to LMI borrowers, which exceeded the lion, and several investments, including an investment of percentage of LMI households in the general population. $41 million in the Massachusetts Housing Equity Fund, an The bank's market share among LMI borrowers and in equity investment pool managed by MHIC to invest in LMI areas significantly exceeded its overall market share. community development projects. Fleet also committed a Fleet Bank's housing-related loans to LMI individuals total of $50 million in loans, grants, technical assistance, fluctuated, however, decreasing 25.3 percent from 1996 to and services over 10 years to support the City of Boston 1997, while its overall housing-related loans decreased Empowerment Zone designated by the Department of 13.7 percent, and increasing 21.7 percent from 1997 to Housing and Urban Development ("HUD"). 1998 while its overall lending increased 48.7 percent.51 Examiners considered the distribution of Fleet Bank's Examiners also found that Fleet Bank's distribution of branches among LMI census tracts to be good. The bank's small business loans compared favorably with that of other products, services, and business hours were consistent at lenders. In 1996 and 1997, the bank made 10,414 small all locations, and the array of products and services helped business loans, totaling $1.6 billion, including 6,827 loans, to meet the needs of consumers and businesses across all or 66 percent of the total, with principal amounts of less geographic areas and income levels.53 than $100,000. The bank also made 5,049 loans, totaling Connecticut. Examiners found the distribution of Fleet $345 million, to businesses with annual gross revenues of Bank's housing-related, consumer, and small business less than $1 million ("loans to small business"), including lending in Connecticut to reflect a reasonable penetration 4,403 loans, or 64 percent of the total, to businesses with of all areas of the state. Low-income and moderate-income annual gross revenues of less than $100,000. The percent- borrowers received 8 percent and 17 percent, respectively, age of loans to small business that the bank made in LMI of the bank's HMDA-related loans, which closely matched areas corresponded closely to the percentage of small busi- lending to LMI borrowers by lenders in the aggregate. For nesses located in these areas and exceeded the percentage home purchase lending, the bank's market share of loans to of loans to these small businesses by lenders in the aggre- low-income borrowers and in low-income census tracts gate. In addition, Fleet Bank made 48 percent of its con- was twice the bank's overall share of home purchase loans, sumer loans to LMI households, while LMI households and its market share in moderate-income census tracts was constituted 38 percent of all households in the state. 1.6 times its overall market share. Twenty-nine percent of In Massachusetts, Fleet Bank made 19 community devel- Fleet Bank's home mortgage loans were made to moderateopment loans during 1996 and 1997, totaling $157 million, income borrowers in 1996, and 23 percent in 1997, while including 11 loans, totaling $144.2 million, to support the moderate-income households constituted only 19 percent development of affordable housing;52 seven loans, totaling of total households in Connecticut. 50. Several commenters expressed concern that Fleet would increase fees for banking products and services or eliminate or alter and new construction of rental, cooperative, and single-roombanking products and services after consummation of the proposal. occupancy affordable housing. Fleet and BankBoston offer a full range of affordable banking prod- 53. Two commenters alleged that Fleet made home purchase and ucts and services, and Fleet has indicated that it would offer products home improvement loans to minority and LMI borrowers in the and services to its customers selected from the current offerings of Boston area in excess of the fair market value of the property, which both organizations. In addition, Fleet and BankBoston participate in resulted in excessive debt service and an increased risk of loan default the "Basic Banking for Massachusetts" program that offers low-cost and foreclosure. Fleet has replied that it has taken extensive measures checking and savings accounts to low-income customers, and Fleet to verify the fair market value of mortgaged property, including has announced its goal to open 42,000 new accounts under this imposing strict qualification standards on independent appraisers and program over the next five years. Moreover, although the Board has requiring loan underwriters to review all appraisals submitted. Fleet recognized that banks help to serve the banking needs of communities Bank also requires additional loan reviews and property inspections to by making basic services available at nominal or no charge, the CRA verify the fair market value for all multi-family properties that are sold does not require an institution to provide any specific types of prod- within two years of a prior sale for 20 percent more than the prior sale ucts or services or limit the fees it charges for them. and for all multi-family properties regardless of price in certain 51. For lenders in the aggregate, lending to LMI individuals in- Boston area neighborhoods. Other commenters requested the Board to creased from 1996 to 1997 and exceeded Fleet's increase from 1997 consider predatory lending practices allegedly engaged in by Fleet's to 1998. subprime lending subsidiaries in the past. The Board has considered 52. In 1998, Fleet Bank renewed its $20.5 million participation in a these allegations in light of the entire record of this case and the $52 million loan pool managed by the Massachusetts Housing Invest- findings on these matters made by the Board in previous cases. See ment Corporation ("MHIC") to support the purchase, rehabilitation, Fleet Financial Group, Inc., 82 Federal Reserve Bulletin 50 (1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
758 Federal Reserve Bulletin • November 1999 In 1998, the bank's housing-related loans to LMI bor- with its size and scope of operations. During the examinarowers increased 13 percent. Fleet also increased its afford- tion period, it originated 17,117 HMDA-reported loans, able mortgage lending in Connecticut in 1998. Affordable totaling $953 million. Examiners reported, however, that mortgage loans increased from 458 in 1997, totaling $42.6 between 1996 and 1997 the bank's HMDA-reported lendmillion, to 534 in 1998, totaling $52.6 million. Fleet com- ing decreased by 39 percent, which was attributable in part mitted an additional $3 million in 1998, for a total commit- to management and operational changes at Fleet Mortgage ment of $14 million, to the HART first-time homebuyers and the resulting turnover among loan originators.57 program, which offers below-market interest rate loans to The geographic distribution of lending by Fleet Bank low-income homebuyers. The bank also made 52 percent was considered reasonable by examiners. However, in sevof its consumer loans in the state to LMI borrowers. eral parts of upstate New York, the bank's market share of Examiners reported that Fleet Bank made 5,752 small HMDA-reported loans to LMI borrowers was less than its business loans in Connecticut during 1996 and 1997, total- market share of HMDA-reported loans to all borrowers.58 ing $863 million, including 3,973 loans, or 71 percent of Examiners also reported that the percentage of consumer the total, with principal amounts of less than $100,000. The loans that the bank made in LMI census tracts was lower bank's loans to small business constituted 55 percent of all than the percentage of the population residing in these its commercial loans, compared with 43 percent for lenders areas. in the aggregate. The bank also made a higher percentage During the examination period, the bank made 8,207 of its small business loans in LMI census tracts than did small business loans, totaling $1.2 billion. The number of lenders in the aggregate.54 In 1998, the bank made 2,059 small business loans decreased 15 percent from 1996 to small business loans, totaling $186.2 million, including 1997, but increased 23 percent from 1997 to 1998, and 414 loans totaling $36.3 million in LMI census tracts, loans to small business increased 43 percent. Examiners which corresponded closely to the percentage of small found that the geographic distribution of these loans generbusiness loans made by lenders in the aggregate in LMI ally corresponded to the distribution of small businesses in census tracts. upstate New York, and that the bank made a higher per- The bank made eight community development loans in centage of its small business loans in LMI census tracts the state, including six loans, totaling $11 million, to than the comparable percentage for lenders in the aggresupport the development of affordable housing, and two gate. loans, totaling $5.5 million, to help provide medical and Examiners commended Fleet Bank for its level of investsocial services to LMI individuals. Examiners commended ment in upstate New York. The bank focused on identified Fleet Bank for the level of its investment in the state to credit needs and took a leadership role in many of the support community development. The bank invested $5.5 organizations it supported.59 During the examination pemillion and committed to invest an additional $6.4 million, riod, Fleet Bank made investments of $9.4 million and and made grants of $979,000 and committed to make grants of $1.1 million, and committed to make additional grants of an additional $979,000. In 1998, Fleet Bank investments of $9.5 million and additional grants of purchased $25 million of mortgage-backed, taxable reve- $1.3 million.60 nue bonds issued by the Connecticut Housing Finance Authority to fund its affordable mortgage loans.55 Examiners found that the distribution of Fleet Bank's 57. Based on HMDA data reported by Fleet, Fleet Bank's total loan originations increased 56 percent from 1997 to 1998, and the percentbranches in LMI census tracts compared favorably with the age of the bank's loan originations to LMI borrowers and in LMI percentage of LMI census tracts in the state and exceeded areas increased slightly. However, the percentage of the bank's the percentage of the statewide population that resided in housing-related loans to LMI borrowers and in LMI areas in 1998 these areas. remained lower than the percentage for lenders in the aggregate. Upstate New York.56 Examiners considered Fleet Bank's 58. Examiners attributed this disparity to the bank's large volume of refinancing among middle- and upper-income borrowers and the scarvolume of lending in upstate New York to be consistent city in some areas of affordable housing and financial assistance programs. However, examiners also noted disparities in originating home improvement loans. For example, in the Buffalo MSA, Fleet 54. Fleet states that during 1997 and 1998 Fleet Bank was the most Bank originated 10.8 percent of all home improvement loans in the active lender in the Connecticut Development Authority's Urbank market in 1996, but it originated only 2.6 percent in low-income program to provide small loans and technical assistance to small- and census tracts and only 3.4 percent in moderate-income census tracts. mid-sized businesses in urban areas. 59. The bank committed $5.3 million to and is the largest investor in 55. Some commenters expressed concern that Fleet Bank did not Capital Affordable Housing Funding Corporation, a partnership in offer a sweep feature on lawyers' trust accounts to permit the interest Albany of banks, community organizations, and local government to earned on these accounts to be collected to fund legal service organi- help finance the construction of affordable housing and the purchase zations. Fleet stated that it will make this feature available in Connect- of affordable housing by LMI households. icut in the future. 60. The bank invested $200,000 during the examination period and 56. This assessment area includes the Albany, Buffalo, Duchess invested an additional $100,000 in 1998 in Ibero-American Investors County, Elmira, Glens Falls, Jamestown, Newburgh, Rochester, Syra- Corporation, a specialized small business investment company in cuse, and Utica Metropolitan Statistical Areas ("MSAs") and the Rochester that assists minority- and women-owned businesses. Fleet non-MSA areas of Allegany, Cattaraugus, Clinton, Columbia, Cort- Bank also made a grant of $75,000 during the examination period and land, Essex, Franklin, Fulton, Greene, Jefferson, Lewis, Otsego, Sen- made a construction loan of $300,000 in 1998 to Frederick Douglass eca, Schuyler, Steuben, Sullivan, St. Lawrence, Tompkins, Ulster, Community Development Corporation in Rochester to help fund the Wyoming, and Yates Counties. construction of 21 affordable single family homes and a senior citizen Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 759 Fleet Bank located 22 percent of its upstate New York were made to small businesses in 1996, compared with 52 branches in LMI census tracts, which approximated the percent by lenders in the aggregate. Fleet Bank also generpercentage of LMI census tracts among all census tracts in ally made a higher percentage of its small business loans the area and exceeded the percentage of the population and loans to small business to borrowers in LMI census residing in LMI census tracts. tracts than lenders made in the aggregate. In 1998, the bank Rhode Island.61 Examiners found that Fleet Bank's made 6.8 percent of its loans to small business in LMI housing-related and consumer lending was widely distrib- census tracts, compared with 3.7 percent by lenders in the uted and demonstrated a high level of responsiveness to the aggregate. The bank also made 37 SBA loans, totaling credit needs of the state. During 1996 and 1997, the bank $11.8 million, in 1998. originated or purchased 5,818 HMDA-reported loans, total- Fleet Bank made three loans during the examination ing $471 million, and the percentage of its home mortgage period, totaling $600,000, to support the development of lending in LMI census tracts was consistent with the per- affordable housing for LMI households in the Providencecentage of owner-occupied housing units in these areas. In Fall River MSA, and three loans, totaling $6.5 million, to 1996, the bank made 11 percent of all home purchase loans organizations that promoted economic development by made in moderate-income census tracts by lenders in the providing financing to small businesses. During the examiaggregate, compared with the bank's market share of 7 nation period, the bank also helped to establish the first percent for all home purchase loans. The bank also made low-income community-based credit union in Rhode Is- 8.3 percent of its home purchase loans to low-income land, and made a special deposit of $200,000 for three borrowers, compared with 3.9 percent for lenders in the years at a nominal interest rate to help fund its operations. aggregate, and 26.6 percent to moderate-income borrow- The bank donated three parcels of real estate, valued at ers, compared with 17.3 percent for lenders in the aggre- $562,000, to community development organizations and gate.62 made additional grants to such groups of $424,000 and More recent HMDA data indicate a significant increase qualified investments of $10 million. In 1998, the bank in housing-related lending by the bank. From 1997 to made a $500,000 investment in the Business Development 1998, loan applications increased 66 percent. Affordable Company of Rhode Island to fund equity investments in mortgage loans also increased from 260 loans originated in start-up companies. 1997, totaling $23.3 million, to 310 loans in 1998, totaling Overall, examiners noted that the bank's branches pro- $31.3 million. In LMI census tracts, however, HMDA- vided reasonable access to banking services in all georeported applications decreased. Loans made in LMI cen- graphical areas and to all income levels, including LMI sus tracts decreased from 8.8 percent of the bank's census tracts and LMI individuals. The bank's distribution housing-related loans in 1997 to 5.6 percent in 1998. of branches was found by examiners to differ slightly, Examiners considered Fleet Bank's distribution of small however, from the distribution of the population, with 19 business loans to be good. During 1996 and 1997, the bank percent of all branches in LMI census tracts compared with made 2,980 small business loans, totaling $429 million. 26 percent of all census tracts designated as LMI areas and Approximately 60 percent of the bank's commercial loans 22 percent of the population in the service area residing in these census tracts. Fleet Bank's branches in LMI census tracts had the same hours of operation as its branches in living center. In 1998, Fleet Bank also served as lead bank for a $1.8 other census tracts in Rhode Island. million line of credit to support the redevelopment of a closed military Fleet-NH. Examiners found that Fleet-NH was responbase in Rome; made a $300,000 mortgage loan to fund the construcsive to the credit needs of its assessment area in New tion of a round-the-clock day care center and child care training center in Rochester; and made a $75,000 unsecured loan to Buffalo Neigh- Hampshire and had a satisfactory record of lending in all borhood Housing Services to help fund a $300,000 revolving fund for geographical areas, including LMI areas, and serving all the purchase, rehabilitation, and resale of affordable housing for borrowers, including LMI borrowers. During the examinalow-income homebuyers. tion period, the bank made 2,139 HMDA-reported loans, 61. The number and dollar amount of loans made during the examination period include a small number of loans in the Connecti- totaling $117.4 million, of which 23 percent were made to cut portion of the New London-Warwick MSA. Percentage calcula- LMI households. The percentage of HMDA-reported loans tions are based solely on loans in the Providence-Fall River MSA, that the bank made to LMI borrowers and in LMI census which includes a small number of loans in the Massachusetts portion tracts approximated the percentage of LMI borrowers in of this MSA. the population statewide and the percentage of LMI census 62. Some commenters asserted that Fleet's mortgage servicing and collection practices in Rhode Island were inflexible and resulted in an tracts in the state and also was consistent with the correunusually high default rate among LMI borrowers, as indicated by sponding lending statistics for lenders in the aggregate.63 In Fleet's loss mitigation record for FHA loans monitored by HUD. Fleet 1998, Fleet-NH made 1,892 HMDA-reported loans, a 79 has noted that its loss mitigation record has improved each year since percent increase from 1997. From 1997 to 1998, loans to 1996, and that in 1997 it established Fleet Collection and Recovery Service ("FCRS") to manage its Affordable Housing program portfolio loans. According to Fleet, FCRS collectors are trained to work with LMI borrowers and are able to provide extensive financial counseling services and references to community organizations for additional assistance. Fleet also has stated that its record of transfer- 63. Almost all the lending occurred in moderate-income census ring delinquent loans to third parties is consistent with lending indus- tracts because less than 1 percent of the state's population and only try standards. 180 owner-occupied housing units were in low-income census tracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
760 Federal Reserve Bulletin • November 1999 LMI individuals increased 24 percent, and loans in LMI and grants to be responsive to the credit needs and ecocensus tracts increased 60 percent. nomic development needs of the community it served. Consumer lending also was reasonably distributed During the examination period, Fleet-NH committed to among borrowers and census tracts at all income levels. In make qualified investments of $6 million. This included an 1997 and the first quarter of 1998, the percentage of investment of $2 million over two years in the New Hampconsumer loans made by Fleet-NH to LMI households shire Housing Equity Fund, a nonprofit corporation enexceeded their percentage of the population in the service gaged in rehabilitating and constructing affordable multiarea. family rental housing for low-income households. Through Fleet-NH used the Fleet INCITY program, partnership this fund, Fleet-NH helped to finance four projects to programs, and government-sponsored programs to provide develop 90 housing units.64 Fleet-NH also invested in the affordable home mortgage and consumer loans. Under the Mariners Village project in Portsmouth, which developed Fleet INCITY Affordable Housing program, the bank made 66 affordable housing units, and the Merrimack Place 60 loans, totaling $4.7 million, during the examination project in Manchester, which developed 16 affordable period. The bank also funded 30 below-market interest rate housing units. The bank contributed $12 million to a small loans to low-income borrowers, totaling $2.3 million, that business venture capital fund that made 26 investments were made by Manchester Neighborhood Housing Ser- during the examination period, including seven investvices ("Manchester NHS") and French Hill Neighborhood ments in companies in New Hampshire. In 1999, Fleet Housing Services ("French Hill NHS") as part of Fleet's CDC invested $500,000 in an affiliate of the New Hamp- $10 million commitment to NHS A. In 1998, the bank shire Business Development Corporation to be used to made 130 total affordable mortgage loans, totaling $12.5 fund companies that are too small to attract private venture million. capital funds. Fleet-NH made 1,029 small business loans, totaling Fleet-NH's branch network was determined by examin- $114.3 million, in the state during the examination period. ers to be accessible throughout the bank's assessment area, Examiners found that the geographical distribution of these including LMI census tracts. Over 20 percent of the bank's loans compared favorably with the percentage of the state's branches were located in LMI census tracts, and business population that resided in LMI census tracts. Examiners hours, products, and services were comparable for all its favorably noted that all of Fleet-NH's business loans in the branches. The bank's alternative delivery systems, includstate were to small businesses, and that more than 76 ing ATMs, 24-hour consumer and business telephone bankpercent of the bank's business loans were in principal ing, and home banking through personal computers, further amounts of less than $100,000, which was consistent with increased access. Several branches also offered bilingual the examiners' profile of businesses in New Hampshire. In teller assistance and ATM services in several languages. 1998, Fleet-NH made 919 small business loans, totaling Fleet-NJ.65 Examiners found that Fleet-NJ lent through- $80.9 million. Although the number of small business out its assessment area, including LMI census tracts. Durloans declined from 1996 through 1998, the percentage of ing the examination period, Fleet-NJ made 13 percent of these loans made in LMI census tracts remained consistent the total number of home mortgage loans made by all with the percentage of LMI census tracts in the state and lenders in LMI census tracts in its assessment area, more the percentage of small business loans in LMI census tracts than twice the market share of any other lender. The bank by lenders in the aggregate. also had a commendable record of lending to LMI borrow- Examiners also judged Fleet-NH to be an active commu- ers and, despite competition from much larger financial nity development lender. During the examination period, institutions in the market, was among the five largest the bank made loans or entered into loan commitments, lenders to LMI borrowers in the New York City CMSA totaling $12 million, to support community development. during 1996 and 1997. Examiners also noted the bank's Most of these funds were allocated to statewide affordable- success in making consumer loans in LMI census tracts housing loan pools and community partnerships. For exam- and to LMI borrowers. ple, the bank provided $6 million to a $30 million loan Examiners reported that Fleet-NJ offered affordable pool administered by the New Hampshire Community home mortgage loans under proprietary and government- Reinvestment Coalition to help finance multifamily hous- supported loans programs. For example, the bank's Home ing projects. At the time of the examination, the bank had Mortgage Opportunity Loan program featured belowcontributed $3 million to the loan pool, which totaled $12 market interest rates, no points, a 5-percent down payment million, and had financed 11 affordable housing projects that had developed 342 units of affordable housing. An affiliate of Fleet-NH also provided construction financing 64. In 1999, the bank invested an additional $3.1 million in the for three of the projects. In addition, the bank extended a fund. 65. Fleet-NJ designated its assessment area as all of New Jersey, $500,000 line of credit to Manchester NHS to purchase and New York City, and Nassau, Suffolk, and Westchester Counties, all in rehabilitate affordable housing units and a $100,000 line of New York. The New York portion of the service area and the 14 credit to French Hill NHS for an affordable second mort- northernmost counties in New Jersey are part of the New York-New gage program, and offered counseling to LMI homebuyers Jersey Consolidated MSA ("New York City CMSA") and accounted for 91 percent of the population in the bank's assessment area, 94 in partnership with these organizations. percent of the bank's HMDA-reported and small business lending, Examiners considered the bank's qualified investments and 92 percent of the bank's consumer lending. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 761 requirement, and no required private mortgage insurance Examiners found Fleet-NJ's branch network and alternafor applicants with up to 100 percent of the area's median tive delivery systems, including proprietary ATMs, telefamily income. In 1998, Fleet-NJ made 1,235 loans, total- phone banking, and Workplace Banking, to be reasonably ing $86 million, under this program.66 Another program accessible throughout the bank's assessment area and to featured a 5-percent down payment requirement, of which persons of all income levels. Eighteen percent of the bank's up to 2.5 percent could be provided by grants or gifts.67 branches were located in LMI census tracts, compared with Examiners considered Fleet-NJ to be very responsive in the percentage of LMI census tracts and LMI households its small business lending to the credit needs of the commu- in the bank's service area, which is 26 percent of the area's nities it served, notwithstanding a decline in lending vol- census tracts and households. Workplace Banking, which ume between 1996 and 1997. During this period, the bank offered reduced costs on checking and savings accounts, made 12,975 small business loans, totaling $2 billion. direct payroll deposit, and reduced rates on loans and Three percent of the bank's small business loans were in ATM-based transactions, was used by 286 companies and low-income census tracts, which corresponded to the per- approximately 47,700 households throughout the assesscentage of small businesses in these areas and the percent- ment area. Fleet-NJ also offered basic checking and savage of small business loans by lenders in the aggregate. ings accounts and offered to cash U.S. government benefit Lending by Fleet-NJ to small businesses also was consis- checks for customers and noncustomers. tent with lenders in the aggregate, with 43 percent of the bank's small business loans going to firms with annual E. BankBoston's CRA Performance Record gross revenues of less than $1 million and in principal amounts of less than $100,000.68 Through the Fleet INC- FNB Boston.72 Examiners commended FNB Boston for the ITY program, the bank offered small business loans featur- level of its HMDA-reported lending in LMI census tracts ing reduced documentation, flexible underwriting criteria, and to LMI borrowers, notwithstanding an overall decrease and no minimum loan amount.69 in HMDA-reported lending by the bank during the exami- Examiners characterized Fleet-NJ as a very active com- nation period that was comparable to a decrease by lenders munity development lender, because during the examina- in the aggregate.73 During 1998, HMDA-reported lending tion period the bank made 30 qualified community devel- by FNB Boston increased. The bank made 6,143 housingopment loans, totaling $129 million, which resulted in the related loans, an increase of 51 percent, including 1,694 construction or rehabilitation of 2,300 affordable housing loans, or 27.6 percent, to LMI borrowers, which exceeded units.70 Examiners also commended Fleet-NJ for its com- the percentage of LMI borrowers in the state. In consumer munity development investments. During the examination lending, the percentage of loans that FNB Boston made in period, the bank made $41 million of qualified investments LMI census tracts in Boston and other populated areas of and grants and made commitments to provide an additional the state was two to three times higher than the percentage $74 million of qualified investments.71 for lenders in the aggregate in these areas. Examiners reported that FNB Boston offered proprietary programs, and participated with several community organizations and in several government-supported programs to 66. In late 1998, Fleet-NJ modified this program to focus on provide affordable mortgages.74 Under its First Step Mortlow-income borrowers. Between September 1998 and February 1999, gage program, which featured flexible underwriting for the bank made 438 loans, totaling more than $50 million, under the first-time homebuyers with moderate income, FNB Boston modified program. made 215 loans, totaling $19 million, in 1995, and 310 67. In 1998, Fleet expanded its Down Payment Assistance Grant program to provide grants up to $4,000 to homebuyers who qualify loans, totaling $34.4 million, during the first nine months for a VA loan or a loan to be purchased by Fannie Mae. of 1996. Under CommunityLink, a joint partnership with 68. During 1998, in New Jersey, small business loans by Fleet-NJ NACA in Lawrence and Bethuen, which featured no downincreased 16 percent, and loans to small business increased 39 perpayment, no closing costs, and homebuyer counseling, the cent. The percentage of these loans in low- income census tracts and moderate-income census tracts was comparable to the percentage made by lenders in the aggregate. 69. In 1998 and early 1999, Fleet-NJ made $2 million of loans in small business loans in the Harlem/South Bronx Empowerment Zone New York Chinatown to small businesses that did not satisfy auto- designated by HUD. mated lending guidelines. 72. At the time of the examination, FNB Boston served all of 70. Included among these projects were a $13.1 million construc- Massachusetts, except some areas with small populations in the westtion loan to renovate 12 apartment buildings in East Harlem, creating ern part of the state. 133 affordable rental housing units; a $9.7 million construction loan to 73. During 1995 and the first nine months of 1996, the percentage of renovate six apartment buildings in West Harlem, creating 104 afford- the bank's HMDA-reported loans in low-income census tracts was able rental housing units; an $8 million construction loan to rehabili- two to three times higher than the percentage for lenders in the tate 29 vacant city-owned brownstone residences in New York; a $3 aggregate, and the percentage of its loans in moderate-income census million construction loan to a nonprofit entity to build a 61-unit tracts was 1.5 to two times higher than the aggregate percentage. FNB apartment complex for the elderly in northern New Jersey; and a $3.5 Boston's HMDA-reported loans to LMI borrowers were similarly million construction loan to build 128 units of affordable housing for higher than the aggregate. elderly or disabled LMI individuals in Burlington County in southern 74. Affordable mortgage products constituted 33.6 percent, 30.5 New Jersey. percent, and 41.8 percent of all home mortgage loans made by FNB 71. After the examination period, Fleet-NJ committed $50 million Boston during 1994, 1995, and the first nine months of 1996, respecto fund the construction of affordable housing and $7.5 million for tively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
762 Federal Reserve Bulletin • November 1999 bank made 53 loans, totaling $4.7 million, in 1995, and 35 FNB Boston made four loans, totaling $581,000, at belowloans, totaling $2.6 million, during the first nine months of market interest rates to retain businesses in and attract new 1996. In 1998, the bank made 149 loans, totaling $14 businesses to downtown New Bedford. million, under this program. FNB Boston also offered a Examiners stated that FNB Boston promoted community homebuyer counseling program with ACORN for home development primarily through its business and real estate purchase and refinance borrowers. In 1998, the bank made lending. Total advances and commitments by FNB Boston 272 loans, totaling $11.3 million, under this program. during 1995 and the first nine months of 1996 for commu- Under CityHOME, a partnership with the City of Boston to nity development were $213 million.77 During this period, encourage municipal employees to purchase and rehabili- the bank financed or refinanced 16 multifamily housing tate residential properties in the city, the bank made 18 projects, totaling $55.5 million, which produced 784 afloans, totaling $1.7 million, in 1995. In 1996, the program fordable housing units. In 1996, FNB Boston also conwas expanded to include the City of Worcester, and the verted its funding pledge to the Massachusetts Housing bank made 20 loans, totaling $1.9 million, under the pro- Partnership into a grant of $5 million to establish an equity gram during the first nine months of 1996. Nineteen loans, fund to develop affordable housing. This equity fund has totaling $2.9 million, were made under this program in financed more than 40 affordable housing projects and 1998. The bank also participated with the Massachusetts provided more than 600 affordable housing units.78 In Housing Partnership and several local municipal govern- 1998, BankBoston CDC made community development ments in the Soft Second program to provide below-market investments totaling almost $52 million, including direct interest rate second mortgages in combination with a con- investments in three businesses totaling $1.7 million; the ventional first mortgage. Under this program, FNB Boston direct purchase of $15 million of historic tax credits to help made 275 loans, totaling $11.9 million, during 1995 and fund the Landmark Center in Boston; and a commitment to the first nine months of 1996. In 1998, the bank made 347 the Massachusetts Housing Equity Fund of $11.3 million loans, totaling $32.5 million. The bank also made 161 FHA to be used to purchase low-income housing tax credits. and VA loans, totaling $17.4 million, and 20 below-market Examiners concluded that the bank's branch network interest rate loans through the Massachusetts Housing provided reasonable access for all segments of the commu- Finance Authority, totaling $18.4 million, during the exam- nity to products and services that addressed the communiination period. ty's credit needs. Twenty-eight percent of all branches According to examiners, FNB Boston also provided were in LMI areas, and an additional 25 percent of all strong support to small businesses. The bank made 3,108 branches were within 1.5 miles of LMI areas. The bank small business loans, totaling $414 million, in 1995 and offered a basic checking account for limited account activ- 3,352 small business loans, totaling $476 million, during ity, and customers over 65 years old were offered low-cost the first nine months of 1996.75 FNB Boston also was the checking accounts and savings accounts with no minimum most active SB A lender in the state and retained this balance requirement. FNB Boston also developed a separanking for the next two years. During 1995 and the first rate division, called First Community Bank, that operated nine months of 1996, it made 325 SBA loans, totaling 20 branches initially in neighborhoods with a significant $24.6 million. During a 12-month period ending in Sep- minority population and concentration of LMI households, tember 1997, FNB Boston made 196 SBA loans, totaling and that implemented a separate business and marketing $19.4 million. During the next 12 months, the bank made plan to provide residents in these neighborhoods with 142 SBA loans, totaling $9.7 million. The bank was desig- products and services specifically designed for their credit nated an SBA preferred lender, which facilitated the review and banking needs. FNB Boston now operates 42 First and approval of loan requests by the SBA, and was autho- Community Bank branches in Massachusetts, Connecticut, rized under the FA$TRAK program to use the bank's and Rhode Island, with 137,000 customers and $1.6 billion documentation for certain loans up to $100,000. The bank made 103 FA$TRAK loans, totaling $3.7 million, during the first nine months of 1996. FNB Boston also partici- women-owned businesses, which the bank treats as equity for purpated in several local small business loan pools throughout poses of satisfying standard loan underwriting criteria. Through yearthe state, including the Massachusetts Business Develop- end 1998, BankBoston CDC made 23 subordinated loans, totaling ment Corporation, which the bank managed. This program $3.8 million, which facilitated the extension of additional senior loans by FNB Boston totaling $17.1 million. offered small business loans featuring flexible underwrit- 77. Included among these projects were a $19 million construction ing, and made 210 such loans, totaling $13.5 million, loan for Lowell Square in the West End section of Boston to produce during 1995 and the first nine months of 1996.76 In 1998, 184 units of mixed income housing and related retail space; a $3.4 million construction loan and permanent financing for the renovation of the Washington Park Mall in the Roxbury section of Boston; a $1.7 million construction loan to Union Hill Limited Partnership for the 75. According to CRA data filed by FNB Boston after the examina- construction of 40 units of scattered site affordable housing in Worcestion, the bank made 5,991 small business loans in all of 1996, totaling ter; and a $100 million commitment for working capital, lines of $339 million; 6,627 loans in 1997, totaling $347 million; and 9,230 credit, and letters of credit to support the reconstruction and business loans in 1998, totaling $404 million. survival of a major Merrimack Valley textile mill that was destroyed 76. Under a co-lending program, BankBoston Development Com- by fire. pany ("BankBoston CDC"), a subsidiary of FNB Boston, makes 78. The bank announced an additional grant of $5 million in 1999 to subordinated loans in amounts up to $250,000 to minority- and establish a second equity fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 763 of deposits, and Fleet has stated that Fleet Boston would lum Hill Limited Partnership funded the development of 14 expand the program to 45 branches. units of affordable housing in Hartford, and a loan commit- BankBoston-CT. Examiners reported that ment of $450,000 to the Capitol Housing Corporation BankBoston-CT received more than 30 percent of its supported work to complete 91 projects that provided HMDA-reported loan applications from low-income appli- 1,426 affordable housing units in the Hartford area. In cants during the examination period, and the bank contin- 1999, BankBoston-CT entered into an agreement with Fanued thereafter to successfully solicit applications from LMI nie Mae for the bank to provide up to $10 million of borrowers. The bank received 33.5 percent of its housing- leveraged financing for affordable housing and neighborrelated loan applications from LMI individuals in 1996, hood revitalization projects in the City of Hartford, and 43.2 percent in 1997, and 35 percent in 1998. Loan origina- made a $1.9 million commitment for its first project loan tions showed a similar pattern. BankBoston-CT made 32.5 under this program. BankBoston-CT also invested $1 milpercent of its housing-related loans to LMI borrowers in lion in the Connecticut Economic Development Fund to 1996, 41.8 percent in 1997, and 32.5 percent in 1998. provide credit and technical assistance for small business BankBoston-CT also offered or participated in several expansions and relocations that would create significant programs that offered affordable home mortgages. The additional employment opportunities in the state. bank's First Step Mortgage program featured flexible un- Examiners stated that BankBoston-CT provided a full derwriting, reduced downpayment requirements, and lower range of credit products to serve its entire community. The closing costs for first-time, low-income homebuyers. The bank's First Step products were specifically designed to bank also participated during the examination period in meet the credit needs of LMI customers.79 All several programs sponsored by HART and committed to BankBoston-CT branches cashed government checks for provide $3 million in affordable mortgage loans at below- customers without charge and distributed food stamps. The market interest rates in selected neighborhoods in Hartford. bank conducted a "second look" review of all mortgage BankBoston-CT made 13 loans in 1997, totaling $1.1 applications before a loan could be denied, and a third million, under this program and made 23 loans in 1998, review of all mortgage loan applications under the First totaling $1.4 million. The bank made an additional 21 Step program and from all LMI applicants. Examiners loans, totaling $1.6 million, in 1998 under an identical found no evidence of prohibited discriminatory or other program sponsored by the Urban League of Hartford. The illegal credit practices and no practices or procedures inbank also participated with the Waterbury Housing Author- tended to discourage applications. ity to assist public housing tenants and other eligible bor- Hospital Trust. Examiners commended Hospital Trust rowers in Waterbury by committing $750,000 for second for the distribution of its home mortgage and consumer mortgages that the bank would forgive after five years at lending. The bank made 39 percent of all its home mortthe rate of 5 percent of the original principal amount per gage loans and 46 percent of all its consumer loans to LMI year. borrowers. The percentage of the bank's home mortgage Examiners described BankBoston-CT as an active small loans originated to low-income borrowers was 2.2 times business lender. BankBoston-CT participated in the state's the comparable percentage for lenders in the aggregate in Urbank program to help meet the financing needs of small 1995, and 1.3 times the percentage in 1996. For moderatestart-up and minority-owned businesses, and established its income borrowers, the percentage of home mortgage loans own small business division that offered microloans with originated by the bank was 1.5 times the comparable principal amounts as small as $2,000. BankBoston's small percentage for lenders in the aggregate in 1995 and 1.3 business lending rapidly expanded after the examination times the comparable percentage in 1996. Hospital Trust period. The bank made 478 small business loans in 1996, maintained its commitment to LMI borrowers after the totaling $57.9 million; 673 loans in 1997, totaling $65.7 examination period. In 1997, the bank made 38.6 percent million; and 1,563 loans in 1998, totaling $77.8 million. of its housing-related loans to LMI borrowers, and 16.9 By comparison, both the number and dollar amount of percent of such loans to residents of LMI census tracts, small business loans by lenders in the aggregate decreased compared with 19.3 percent of residents of LMI census from 1996 to 1998. The percentage of the bank's small tracts in the total population of Rhode Island. In 1998, the business loans in LMI census tracts also approximated the bank's housing-related lending increased substantially, alpercentage of LMI census tracts in the bank's assessment though lending to LMI borrowers was unchanged. area. Examiners noted that Hospital Trust offered several Examiners favorably noted BankBoston-CT's participa- mortgage products to address the need for affordable morttion in community development projects. The bank made a gage financing in its assessment area. Under the First Step leading commitment of $1.3 million to the Waterbury Housing Fund for the construction and rehabilitation of multifamily LMI housing, which supported the rehabilita- 79. These products included a checking account featuring no tion of 99 units of affordable rental housing, and it made a monthly service charge with direct deposit, no minimum balance $2.5 million commitment to the Affordable Housing Fund requirement, and six free transactions per month; an interest-bearing of Connecticut, of which $1.3 million was invested in a savings account featuring no minimum balance, unlimited deposit and withdrawal privileges, and a $1 monthly service charge; and a checkproject to develop 148 affordable housing units in downing account for customers 60 years or older featuring no service town New Haven. An investment of $630,000 in the Asycharge, no minimum balance requirement, and no transaction charges. 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764 Federal Reserve Bulletin • November 1999 program, Hospital Trust originated loans in the total F. HMDA Data and Fair Lending amount of $14.4 million in 1995 and $8.4 million in the first nine months of 1996.80 During this period, the bank The Board has carefully considered the lending records of also originated 316 FHA and VA loans, totaling $33 mil- Fleet and BankBoston in light of comments on HMDA lion, and 258 loans, totaling $21 million, under several data reported by subsidiaries of the organizations. In particprograms sponsored by the Rhode Island Housing and ular, commenters alleged that HMDA data from Fleet's Mortgage Finance Corporation ("RIHFMC"). During 1998 banking and nonbanking subsidiaries showed discriminaand 1999, Hospital Trust made 18 loans, totaling $1.7 tion against minority and LMI credit applicants in violation million, under the Opening Doors program for first-time of the fair lending laws. Commenters also asserted that a homebuyers sponsored by RIHFMC, which features 100- substantial overall decrease in housing-related lending has percent financing and financial counseling. occurred after other acquisitions by Fleet and BankBoston. Hospital Trust also was commended by examiners for its Commenters expressed concern that this decrease was evismall business lending. In 1995, the bank introduced a dence of a withdrawal by these organizations from one-page form to simplify the application process and housing-related lending, and that allowing consummation reduce the bank's response time for loans for principal of the proposal would result in a substantial decrease in amounts of less than $100,000. The volume of lending Fleet and BankBoston's lending in various New England increased from $91 million during 1995 to $102 million markets. during the first nine months of 1996. In 1997, the bank Fleet and BankBoston deny allegations of illegal credit made 495 small business loans, totaling $46.6 million, and practices and have provided HMDA data and extensive in 1998 its lending increased to 1,130 loans, totaling $57.9 information regarding their lending programs and efforts to million.81 From 1995 to 1996, SBA lending doubled to 77 serve minority and LMI communities. Fleet also has stated loans for $7.8 million. that Fleet Boston would continue to market a variety of Examiners found that Hospital Trust was an active par- products, including home mortgage products, that feature ticipant in community development projects, with an em- flexible terms and are selected from the current offerings of phasis on projects that provided affordable housing and Fleet and BankBoston, to all segments of its service comsupported economic development. During the first nine munities, and would seek to expand the combined organimonths of 1996, the bank made 46 percent of all its real zation's customer base through partnerships with commuestate development loan commitments to nonprofit organi- nity organizations. zations in LMI census tracts that supported affordable The Board has carefully considered the 1996, 1997, and housing or supported economic development, and it helped 1998 HMDA data reported by Fleet and BankBoston. The to finance the development of 522 affordable housing units data indicate that both Fleet and BankBoston made a during the examination period.82 significant number and amount of housing-related loans in Several alternative delivery systems, including loan ap- each of these years, including in LMI areas and to LMI plications by telephone, provided additional access to the individuals and minorities. The data generally show that bank's products and services. The bank conducted a "sec- housing-related lending by Fleet and BankBoston declined ond look" review of all home purchase, home improve- from 1996 to 1997. The data also show, however, that ment, and consumer loan applications before a loan could housing-related lending by Fleet and BankBoston increased be denied and a third review for purchase mortgage appli- from 1997 to 1998, exceeding 1996 levels in several ascations by LMI applicants. Hospital Trust's conventional sessment areas and reported loan categories.83 Moreover, mortgage lending affiliate also employed second and third the data show that, although BankBoston withdrew in large review programs for denied applications by LMI appli- part from conventional home mortgage lending during this cants. period, the level of home mortgage lending that it provided to LMI and minority populations in Massachusetts, Connecticut, Rhode Island, and New Hampshire remained the same or increased, and in many cases exceeded lending levels to LMI individual and minorities by lenders in the 80. Hospital Trust also made 287 First Step home improvement aggregate. The data indicate a decrease in the percentage of loans, totaling $5 million, during the examination period. loan applications received by Fleet from minority and LMI 81. The bank's loans to small business increased at a similar rate, individuals. Importantly, the data generally do not indicate from 216 loans in 1996, totaling $9.7 million, to 250 loans in 1997, totaling $9.6 million, and 692 loans in 1998, totaling $18.6 million. that either Fleet or BankBoston is excluding any geo- Small business loans and loans to small businesses by lenders in the graphic areas or population segments on a prohibited basis. aggregate did not show similar increases. The data also reflect certain disparities in the rates of 82. These projects included a reduced-rate construction loan to loan applications, originations, and denials among mem- Woonsocket Neighborhood Development Corporation for $510,000 to bers of different racial groups and persons at different rehabilitate 14 buildings and create 44 units of affordable housing for very low-income households; a $900,000 revolving line of credit to the Providence Housing Authority to construct 25 new housing units at scattered sites for lease to low-income tenants; and a $925,000 loan to an affiliate of the Women's Development Corporation to acquire 83. This increase was generally larger for Fleet than for BankBosand renovate 14 single family homes in North Smithfield to be sold to ton. BankBoston sold its remaining interest in a residential mortgage low-income purchasers. banking subsidiary in 1998. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 765 income levels, both generally and in certain states and local As noted above, although HMDA data for Fleet and areas. The Board is concerned when an institution's record BankBoston show some fluctuation in their levels of home indicates such disparities in lending, and believes that all mortgage lending, a loan product that both organizations banks are obligated to ensure that their lending practices consider to be part of their normal business, the data reveal are based on criteria that assure not only safe and sound substantial mortgage lending by these organizations banking, but also equal access to credit by creditworthy throughout the period and a subsequent increase in home applicants, regardless of their race or income level. The mortgage lending that typically equaled or exceeded tem- Board recognizes, however, that HMDA data alone provide porary decreases in home mortgage lending. Importantly, an incomplete measure of an institution's lending in its the examinations during this period do not reveal any community because the data cover only a few categories of prohibited discriminatory behavior or illegal credit prachousing-related lending. HMDA data, moreover, provide tices at either organization and confirm that both organizaonly limited information about the covered loans.84 HMDA tions have made significant efforts to lend in all communidata, therefore, have limitations that make the data an ties within their assessment areas. Viewed in light of the inadequate basis, absent other information, for concluding entire record, the Board does not believe that the HMDA that an institution has not adequately assisted in meeting its data indicate that Fleet's or BankBoston's records of perforcommunities' credit needs or has engaged in illegal dis- mance in helping to serve the credit needs of its communicrimination in making lending decisions. ties are inconsistent with approval of the proposal. Because of the limitations of HMDA data, the Board has carefully considered the data in light of other information, G. Fleet CRA Pledge including examination reports that provide an on-site evaluation of compliance by the subsidiary banks of Fleet and In connection with the proposal, Fleet has announced a BankBoston with fair lending laws and the overall lending five-year, $14.6 billion CRA pledge for all the states served and community development activities of the banks, as by the combined organization.85 According to Fleet, this well as fair lending examinations of Fleet Mortgage, which program reflects an increase of approximately 8 percent to is a subsidiary of Fleet Bank. Examiners found no evidence the current amounts of CRA-related lending, investments, of prohibited discrimination or illegal credit practices at and charitable contributions by Fleet and BankBoston on a the subsidiary banks of Fleet or at Fleet Mortgage. Fleet combined basis, after adjusting for the proposed divesti- Mortgage's fair lending policies, procedures, training pro- tures.86 grams, and internal monitoring programs were all consid- The CRA requires the Board, in considering Fleet's ered to be satisfactory. application to acquire BankBoston, to review carefully the Examiners also conducted a fair lending examination of actual record of past performance of the insured depository FNB Boston's mortgage lending division and the bank's institutions controlled by Fleet and BankBoston in helping conventional home mortgage lending affiliate in connec- to meet the credit needs of all their communities.87 Consistion with the bank's CRA performance examination. These tent with this mandate, the Board previously has held that, operations were found to comply with the substantive to gain approval of a proposal to acquire an insured deposprovisions of antidiscrimination laws and regulations and itory institution, an applicant must demonstrate a satisfacno evidence of discriminatory credit practices or illegal tory record of performance under the CRA without relidiscrimination was found. Examiners also noted that these ance on plans or commitments for future action.88 operations conducted second and third reviews of loan The Board has considered the Fleet CRA pledge in this applications by LMI individuals before they could be de- light as an indication of the intent of Fleet and BankBoston nied in order to detect and prevent disparate treatment. to maintain and strengthen their current commitment to The Board also considered the HMDA data in light of the overall lending records of Fleet and BankBoston, in- 85. The Fleet CRA pledge includes the following primary elements: cluding the lending and other programs outlined above. As (1) $4 billion in affordable home purchase loans for LMI borrowthe discussion illustrates, both Fleet and BankBoston have ers; implemented a wide variety of programs that help to meet (2) $7.5 billion in small business loans; and the credit needs of the community in areas apart from (3) $2 billion in community development loans and investments in LMI areas. home mortgage lending, including, in particular, small Fleet also indicates that Fleet Boston would maintain the combined business loans and consumer credit. annual charitable contributions of Fleet and BankBoston of $25 million for five years. The distribution of funds under the pledge would generally reflect the relative distribution of Fleet Boston's branches 84. The data, for example, do not account for the possibility that an among the states served by the organization. In states where Bankinstitution's outreach efforts may attract a larger proportion of margin- Boston does not have branches, Fleet expects that its current level of ally qualified applicants than other institutions attract and do not activity would be maintained. provide a basis for an independent assessment of whether an applicant 86. As indicated above, commenters criticized the Fleet CRA pledge who was denied credit was, in fact, creditworthy. Credit history and various features of the pledge. problems and excessive debt levels relative to income (reasons most 87. A number of commenters contended that the Board should not frequently cited for a credit denial) are not available from HMDA consider the CRA pledge in its review of the proposal. data. Fleet also has cited increased management and staffing changes 88. See Totalbank Corporation of Florida, 81 Federal Reserve at Fleet Mortgage as factors affecting its mortgage lending perfor- Bulletin 876 (1995); First Interstate Bank Systems of Montana, Inc., mance. 77 Federal Reserve Bulletin 1007 (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
766 Federal Reserve Bulletin • November 1999 serving the convenience and needs of their communities.89 tive branch closing policies for any branch closing that The Board notes, moreover, that the future activities of may result from the proposal.91 To permit the Board to Fleet Boston, including any lending and community devel- assess the effectiveness of the branch closing policy of opment activities in which the subsidiary banks of Fleet Fleet, the Board conditions its action on the proposal on the Boston might engage under the announced CRA pledge, requirement that Fleet report semiannually to the Federal will be reviewed by the appropriate federal supervisors of Reserve System during the two-year period after consumthose institutions in future performance examinations as mation of the proposal all branch closings, including conthe pledge is implemented, and that Fleet Boston's CRA solidations, that occur as a result of the proposal. For performance record will be considered by the Board in branches closed in LMI census tracts, Fleet also should future applications by Fleet Boston to acquire a depository indicate the proximity of the closed branch to the nearest institution. Fleet branch and the steps that Fleet took to mitigate the impact of the branch closure.92 H. Branch Closures Conclusion on Convenience and Needs Factor In view of the extensive branch divestitures that Fleet has proposed, it has not developed definitive plans to close, The proposed merger would create a large banking organiconsolidate, or relocate any branches of Fleet or BankBos- zation that would have a significant presence in New ton after consummation of the proposal.90 Nevertheless, England and in other parts of the country. Accordingly, the commenters expressed concern that the proposal would Board has carefully reviewed the proposal and its effects result in additional branch closings, particularly in LMI on the convenience and needs of all the communities to be areas. The Board has carefully considered the public com- served by the combined organization. ments about potential branch closings in light of all the In conducting its review, the Board has carefully considfacts of record, including information provided by Fleet. ered all the comments on the convenience and needs factor. The Board also has carefully considered the records of A significant number of commenters expressed support for Fleet and BankBoston in opening and closing branches and the proposal based on the records of Fleet and BankBoston the branch closing policies of Fleet and BankBoston. Ex- in helping to serve the banking and, in particular, the aminers have reviewed the performance of both organiza- lending needs of their entire communities, including LMI tions under their branch closing policies on several occa- areas. Other commenters questioned whether Fleet has sions as part of their review of the banks' CRA been, and Fleet Boston would be, responsive to the bankperformance. The most recent CRA performance examina- ing and credit needs of all their communities. The Board tions of Fleet's subsidiary banks, including Fleet Bank, has carefully considered these concerns and weighed them Fleet-NH, and Fleet-NJ, found that the banks had a satis- against the overall CRA records of Fleet and BankBoston, factory record of opening and closing branches and pro- reports of examination of CRA performance, and informavided reasonable access to services for all segments of the tion provided by the two banking organizations, including bank's communities. These examinations generally noted Fleet's and BankBoston's responses to the comments. no materially adverse effects on LMI neighborhoods from As discussed in this order, the record in this case demonbranch closings. Examiners also concluded that the branch strates that Fleet and BankBoston have established records and ATM networks and alternative delivery systems of of satisfactory or better performance in helping to meet the Fleet's subsidiary banks reasonably served the credit needs convenience and needs of the communities they serve. The of all segments of their communities, including LMI areas. record illustrates that there are strengths and weaknesses in Examiners also reviewed the branch closing policy and the CRA performance record of both organizations, and record of branch closings of BankBoston and concluded that its subsidiary banks had a good record of opening and closing branches. 91. The Board also has considered that federal banking law provides The Board expects that the subsidiary banks of the a specific mechanism for addressing branch closings. Federal law combined organization would continue to use their respec- requires an insured depository institution to provide notice to the public and to the appropriate federal financial regulatory agency before closing a branch. See 12 U.S.C. § 1831r-l; see also Interagency Policy Statement on Branch Closings (64 Federal Register 89. A number of commenters criticized Fleet for not negotiating 34,844 (1999)). The law does not authorize federal regulators to agreements with community organizations and stated that Fleet should prevent the closing of a branch. Any branch closings resulting from be required to negotiate CRA agreements with the political leaders the proposal will be considered by the appropriate federal financial and organizations in areas affected by the proposal. The Board previ- regulatory agency at the next CRA performance examination of the ously has noted that, although communications by depository institu- relevant insured depository institution. tions with community groups provide a valuable method of assessing 92. Several commenters expressed concern that the merger would and determining how an institution may best address the credit needs result in the loss of jobs. The effect of a proposal on employment in a of the community, neither the CRA nor the CRA regulations of the community is not among the factors included in the BHC Act, and the federal financial supervisory agencies require depository institutions federal banking agencies, courts, and Congress consistently have to enter into agreements with any organization. See Fifth Third Ban- interpreted the convenience and needs factor to relate to the eifect of a corp, 80 Federal Reserve Bulletin 838 (1994). proposal on the availability and quality of banking services in the 90. Fleet has indicated that there are no immediate plans to consoli- community. See, e.g., Wells Fargo & Company, 82 Federal Reserve date the Fleet and BankBoston subsidiary banks. Bulletin 445, 457 (1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 767 that both organizations have taken steps to address weak- BBRS are, and would continue to be, broker-dealers regisnesses that may emerge in CRA performance. On balance, tered with the Securities and Exchange Commission and based on a review of the entire record, the Board ("SEC") and members of the National Association of concludes that convenience and needs considerations, in- Securities Dealers, Inc. ("NASD"). Accordingly, both enticluding the records of CRA performance by both organiza- ties would remain subject to the recordkeeping and reporttions' subsidiary depository institutions, are consistent with ing obligations, fiduciary standards, and other requirements approval of the proposal. The Board expects Fleet Boston of the Securities Exchange Act of 1934 (15 U.S.C. § 78a to demonstrate no less commitment to helping to serve the et seq.), the SEC, and the NASD. banking needs of its communities, including LMI neigh- The Board has determined that, subject to the framework borhoods, following consummation of the proposal, than of prudential limitations established in previous decisions Fleet and BankBoston have demonstrated to date. The to address the potential for conflicts of interests, unsound Board believes that Fleet's decision to draw on the best banking practices, or other adverse effects, underwriting CRA policies, practices, and programs of both organiza- and dealing in bank-ineligible securities is so closely retions, with a particular emphasis on implementing the lated to banking as to be a proper incident thereto within strong community development programs and policies of the meaning of section 4(c)(8) of the BHC Act.94 The BankBoston, will help Fleet Boston to demonstrate that Board also has determined that underwriting and dealing in commitment. bank-ineligible securities is consistent with section 20 of the Glass-Steagall Act (12 U.S.C. § 377), provided that the Nonbanking Activities company engaged in the activities derives no more than 25 percent of its gross revenues from underwriting and deal- Fleet also has filed a notice under section 4(c)(8) of the ing in bank-ineligible securities over a two-year period.95 BHC Act to acquire BankBoston's nonbanking companies Fleet has committed that, after consummation of the transand thereby engage in a number of nonbanking activities, action, FSI and BBRS each would conduct its bankincluding underwriting and dealing to a limited extent in ineligible securities underwriting and dealing activities all types of equity and debt securities ("bank-ineligible subject to the revenue and prudential limitations previously securities"). The nonbanking activities for which Fleet has established by the Board. This order is conditioned on requested approval are listed in Appendix A. compliance by the combined organization with the revenue restrictions and Operating Standards established for section A. Activities Approved by Regulation 20 subsidiaries.96 The Board has determined by regulation that extending C. Proper Incident to Banking credit and servicing loans; activities related to extending credit; leasing personal or real property; providing finan- In order to approve Fleet's notice to engage in nonbanking cial and investment advisory services; providing agency activities, the Board must determine that the acquisition of transactional services for customer investments; engaging in investment transactions as principal; certain insurance agency and underwriting activities; and community devel- 94. See J.P. Morgan & Co. Incorporated, et al., 75 Federal Reserve opment activities are all closely related to banking for Bulletin 192 (1989), aff'd sub nom. Securities Industry Ass'n v. Board purposes of the BHC Act.93 Moreover, the Federal Reserve of Governors of the Federal Reserve System, 900 F.2d 360 (D.C. Cir. 1990); Citicorp, et al., 73 Federal Reserve Bulletin 473 (1987), aff'd System previously has approved applications by Banksub nom. Securities Industry Ass'n v. Board of Governors of the Boston to engage in all the proposed activities. Fleet has Federal Reserve System, 839 F.2d 47 (2d Cir.), cert, den., 486 U.S. committed that, after consummation of the proposal, the 1059 (1988) ("Citicorp"); as modified by Review of Restrictions on combined organization would conduct these nonbanking Director, Officer and Employee Interlocks, Cross-Marketing Activities, activities in accordance with the limitations set forth in and the Purchase and Sale of Financial Assets Between a Section 20 Subsidiary and an Affiliated Bank or Thrift, 61 Federal Register Regulation Y and the Board's orders and interpretations. 57,679 (1996), Amendments to Restrictions in the Board's Section 20 Orders, 62 Federal Register 45,295 (1997); and Clarification to the B. Underwriting and Dealing in Bank-Ineligible Board's Section 20 Orders, 63 Federal Register 14,803 (1998) (collectively, "Section 20 Orders"). Securities 95. See Section 20 Orders. Compliance with the revenue limitation shall be calculated in accordance with the method stated in the Section Fleet currently is engaged in underwriting and dealing in 20 Orders, as modified by the Order Approving Modifications to the bank-ineligible securities, to a limited extent, through Fleet Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989); 10 Securities, Inc. ("FSI"). BankBoston also currently is en- Percent Revenue Limit on Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies Engaged in Underwriting and Dealing in gaged in underwriting and dealing in bank ineligible secu- Securities, 61 Federal Register 48,953 (1996); and Revenue Limit on rities, to a limited extent, through BancBoston Robertson Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies Stephens Inc., Boston, Massachusetts ("BBRS"). FSI and Engaged in Underwriting and Dealing in Securities, 61 Federal Register 68,750 (1996) (collectively, "Modification Orders"). 96. 12 C.F.R 225.200. As long as FSI and BBRS operate as separate corporate entities, both companies will be independently subject to the 93. See 12 C.F.R. 225.28(b)(1), (2), (3), (6), (7), (8), (ll)(i), and 25-percent revenue limitation on underwriting and dealing in bank- (12). ineligible securities. See Citicorp at 486 n.45. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
768 Federal Reserve Bulletin • November 1999 the nonbanking subsidiaries of BankBoston and the perfor- mitting capital markets to operate so that bank holding mance of those activities by the combined organization is a companies can make potentially profitable investments in proper incident to banking; that is, the Board must deter- nonbanking companies and from permitting banking orgamine that the proposed transaction "can reasonably be nizations to allocate their resources in the manner they expected to produce benefits to the public . . . that out- consider to be most efficient when such investments and weigh possible adverse effects, such as undue concentra- actions are consistent, as in this case, with the relevant tion of resources, decreased or unfair competition, conflicts considerations under the BHC Act. of interests, or unsound banking practices."97 The Board also believes that the conduct of the proposed As part of its evaluation of these factors, the Board nonbanking activities within the framework established by considers the financial condition and managerial resources this order, prior orders, and Regulation Y is not likely to of Fleet and its subsidiaries, including the companies to be result in adverse effects, such as undue concentration of acquired, and the effect of the proposed transaction on resources, decreased or unfair competition, conflicts of those resources. For the reasons noted above, and based on interests, or unsound banking practices, that would outall the facts of record, the Board has concluded that finan- weigh the public benefits of the proposal, such as increased cial and managerial considerations are consistent with ap- customer convenience and gains in efficiency. Accordingly, proval of the notice. based on all the facts of record, the Board has determined The Board also has reviewed the capitalization of the that the balance of public interest factors that the Board combined organization, FSI, and BBRS in light of the must consider under the proper incident to banking stanstandards set forth in the Section 20 Orders. The Board dard of section 4(c)(8) of the BHC Act is favorable and finds the capitalization of each to be consistent with ap- consistent with approval of Fleet's notice. proval of the proposal and the Section 20 Orders. The Fleet also has provided notice, in accordance with sec- Board's determination is based on all the facts of record, tion 4(c)(13) of the BHC Act and section 211.5(c) of the including the projections of the volume of bank-ineligible Board's Regulation K (12 C.F.R. 211.5(c)), to acquire securities underwriting and dealing activities to be con- BankBoston's foreign banking and nonbanking operations. ducted by FSI and BBRS. The Board also has considered In addition, Fleet has applied as required by sections 25 that Fleet and BankBoston have established policies and and 25A of the Federal Reserve Act and section 211.5(c) of procedures to ensure compliance with this order and the Regulation K to acquire BankBoston International and Section 20 Orders, including computer, audit, and account- Boston Overseas Financial Corporation, both of which are ing systems, internal risk management controls, and the organized under section 25A of the Federal Reserve Act. necessary operational and managerial infrastructure. The Board concludes that all the factors it is required to The Board also has considered the competitive effects of consider under the Federal Reserve Act, the BHC Act, and the proposed acquisition by Fleet of the nonbanking subsid- the Board's Regulation K in connection with the foregoing iaries of BankBoston in light of all the facts of record, notices are consistent with approval of the proposal. including the public comments received. Each of the markets in which the nonbanking subsidiaries of Fleet and Requests for Additional Public Meetings BankBoston compete are national or regional and are unconcentrated, and there are numerous providers of each of A number of commenters requested that the Board hold these services. As a result, the Board expects that consum- additional public meetings or hearings on the proposal in mation of the proposal would have a de minimis effect on areas that may be affected by the merger, including comcompetition for these services. Based on all the facts of munities in Massachusetts, Connecticut, and Rhode Island. record, the Board concludes that it is unlikely that signifi- The Board has carefully considered these requests in light cantly adverse competitive effects would result from the of the BHC Act, the Board's Rules of Procedure, and the nonbanking acquisitions proposed in this transaction. substantial record developed in this case.98 Fleet has indicated that by combining the resources and As explained above, the Board held a public meeting on operations of Fleet and BankBoston, Fleet Boston would the proposal in Boston to clarify issues related to the be able to provide better products and services more effi- applications and notices and to provide an opportunity for ciently to the current customers of Fleet and BankBoston members of the public to testify.99 The Board considered and the future customers of Fleet Boston. Fleet has repre- Boston the appropriate location for the public meeting sented that the combined organization would draw on the because Fleet Boston would be headquartered there, and product strengths of each of its predecessor bank holding because Boston was a reasonably central location in the companies and offer a greater range of products in a larger region in which the new bank holding company would number of locations than Fleet and BankBoston could offer separately. Fleet also has maintained that the merger of Fleet and BankBoston would help to ensure the presence of 98. Section 3(b) of the BHC Act does not require that the Board a strong, locally based institution in New England. In hold a public hearing on an application unless the appropriate superviaddition, there are public benefits to be derived from per- sory authority for the bank to be acquired makes a timely written recommendation of denial of the application. 12 U.S.C. § 1842(b). In this case, the Board has not received such a recommendation from any state or federal supervisory authority. 97. 12 U.S.C. § 1843(c)(8). 99. See 12 C.F.R. 262.3(e) and 262.25(d). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 769 have its most significant geographic presence. Approxi- Conclusion mately 150 interested persons appeared and provided oral testimony at the public meeting, including elected repre- Based on the foregoing, and in light of all the facts of sentatives, the attorneys general of Massachusetts and Con- record, the Board has determined that the applications and necticut, members of community groups from cities and notices should be, and hereby are, approved. In reaching towns throughout New England, and representatives of this conclusion, the Board has carefully considered all oral businesses and business groups throughout New England. testimony and the written comments regarding the proposal In addition, the public comment period provided more than in light of the factors it is required to consider under the 54 days for interested persons to submit written comments BHC Act and other applicable statutes. on the proposal, and the Board received and considered Approval of the applications and notices is specifically written comments from approximately 200 interested per- conditioned on compliance by Fleet with all the commitsons who did not testify at the public meeting. ments made in connection with the proposal and with the In the Board's view, all interested persons had ample conditions stated or referred to in this order, including opportunity to submit their views either in writing or orally Fleet's divestiture commitments and the requirement that at the public meeting in Boston. Numerous commenters, in Fleet Boston file periodic branch closing reports. The fact, submitted substantial materials that have been care- Board's determination on the nonbanking activities also is fully considered by the Board in acting on the proposal. subject to all the terms and conditions set forth in Regula- Commenters requesting additional public meetings have tion Y, including those in sections 225.7 and 225.25(c) (12 failed to show why their written comments do not ade- C.F.R. 225.7 and 225.25(c)), and to the Board's authority quately present their views, evidence, and allegations. They to require such modification or termination of the activities also have not shown why the public meeting in Boston and of a bank holding company or any of its subsidiaries as the the 54-day comment period did not provide an adequate Board finds necessary to ensure compliance with, and to opportunity for all interested parties to present their views prevent evasion of, the provisions of the BHC Act and the and voice their concerns. For these reasons, and based on Board's regulations and orders thereunder. For purposes of all the facts of record, the Board has determined that this transaction, the commitments and conditions referred additional public meetings or hearings are not required and to in this order and in the applications and notices shall be are not necessary or warranted to clarify the factual record deemed to be conditions imposed in writing by the Board on the proposal. Accordingly, the requests for additional in connection with its findings and decision and, as such, public meetings or hearings on the proposal are hereby may be enforced in proceedings under applicable law. denied.100 Underwriting and dealing in any manner other than as approved in this order and the Section 20 Orders (as modified by the Modification Orders) is not within the scope of the Board's approval and is not authorized for Fleet Boston. The acquisition of BankBoston's subsidiary banks shall 100. A number of commenters requested that the Board delay action not be consummated before the fifteenth calendar day on the proposal or extend the comment period until: (1) Fleet provided more detail about its $14.6 billion, five-year following the effective date of this order, and no part of the community development pledge; proposal shall be consummated later than three months (2) Fleet entered into a written, detailed, and publicly verifiable after the effective date of this order, unless such period is CRA agreement produced through negotiations with commuextended for good cause by the Board or by the Federal nity groups; (3) Fleet agreed to renew its home mortgage partnership agree- Reserve Bank of Boston, acting pursuant to delegated ments, particularly those with ACORN and NACA; or authority. (4) Fleet entered into new CRA agreements with local community By order of the Board of Governors, effective Septemgroups. ber 7, 1999. The Board believes that the record in this case does not warrant postponement of the Board's consideration of the proposal. The Board has accumulated a significant record in this case, including reports of Voting for this action: Chairman Greenspan and Governors Kelley, examination, supervisory information, public reports and information, Meyer, Ferguson, and Gramlich. and considerable public comment. Moreover, as discussed more fully above, the CRA requires the Board to consider the existing record of ROBERT DEV. FRIERSON performance of an organization and does not require that an organiza- Associate Secretary of the Board tion enter into contracts or agreements with others to implement the organization's CRA programs. For the reasons discussed above, the Board believes that commenters have had ample opportunity to sub- Appendix A mit their views and, in fact, they have provided substantial written submissions and oral testimony that have been considered carefully by Nonbanking Activities of BankBoston the Board in acting on the proposal. Based on a review of all the facts of record, the Board concludes that the record in this case is sufficient to warrant Board consideration and action on the proposal at this time, (1) Extending credit and servicing loans in accordance and further delay of consideration of the proposal, another extension with section 225.28(b)(1) of Regulation Y (12 C.F.R. of the comment period, or denial of the proposal on the grounds discussed above, including on the basis of informational insufficiency, 225.28(b)(1)), through BancBoston Robertson Steis not warranted. phens Inc. ("BBRS"), BancBoston Investments Inc., Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
770 Federal Reserve Bulletin • November 1999 and BancBoston Real Estate Capital Corporation, all of ton, Hollis, Kennebunkport, Lyman, and North Kenne- Boston, Massachusetts; and Back Bay Capital Funding bunkport in York County: and the city of Biddeford in LLC, Wilmington, Delaware. York County. (2) Activities related to extending credit in accordance with section 225.28(b)(2) of Regulation Y (12 C.F.R. D. Massachusetts Banking Markets 225.28(b)(2)), through BBRS. (3) Engaging in leasing personal or real property in accor- Boston: Boston RMA and the town of Lyndeboro in New dance with section 225.28(b)(3) of Regulation Y Hampshire. (12 C.F.R. 225.28(b)(3)), through Bank Boston Leasing Cape Cod: Barnstable County. Investments Inc., Boston, Massachusetts ("BBLI"). Fall River: Fall River RMA. (4) Providing financial and investment advisory services in Greenfield: Franklin County, excluding the towns of Deeraccordance with section 225.28(b)(6) of Regulation Y field, Leverrett, Monroe, New Salem, Orange, Shutesbury, (12 C.F.R. 225.28(b)(6)), through BBRS. Sunderland, Warwick, and Whately. (5) Providing agency transactional services for customer New Bedford: New Bedford RMA. investments in accordance with section 225.28(b)(7) of Springfield: Springfield RMA and the towns of Otis in Regulation Y (12 C.F.R. 225.28(b)(7)), through BBRS. Berkshire County; Deerfield, Leverett, Shutesbury, and (6) Engaging in investment transactions as principal in Whately in Franklin County; Blanford, Chester, Granville, accordance with section 225.28(b)(8) of Regulation Y and Tolland in Hampden County; Chesterfield, Cumming- (12 C.F.R. 225.28(b)(8)), through BBRS. ton, Goshen, Pelham, Plainfield, Westhampton, and Worth- (7) Engaging in insurance agency and underwriting activi- ington in Hampshire County; and Hardwick and Warren in ties in accordance with section 225.28(b)(ll)(i) of Worcester County. Regulation Y (12 C.F.R. 225.28(b)(ll)(i)), through Worcester: Worcester RMA and the towns of Brimfield and RIHT Life Insurance Company, Phoenix, Arizona. Wales in Hampton County and Hubbardston in Worcester (8) Engaging in community development activities in ac- County. cordance with section 225.28(b)(12) of Regulation Y (12 C.F.R. 225.28(b)(12)), through BBLI. E. New Hampshire Banking Market Appendix B Manchester: Manchester RMA and the towns of Deerfield in Rockingham County and New Boston in Hillsborough Definitions of Banking Markets in which Fleet and County. BankBoston Directly Compete F. Rhode Island Banking Markets A. Connecticut Banking Markets Newport: Newport RMA. Fairfield Area: Connecticut portion of the Metropolitan Providence: Providence-Warwick RMA. New York City Rand McNally Marketing Area ("RMA") and the townships of Kent, Roxbury, Warren, and Washington in Litchfield County. Appendix C Hartford: Hartford RMA and the townships of Hampton and Scotland in Windham County; Hartland in Hartford County; and Union in Tolland County. Banking Markets With No Divestitures New Haven: New Haven RMA. New London: New London RMA and the townships of A. Connecticut Banking Markets Sterling in Windham County and Lyme and Voluntown in New London County. Fairfield Area - Fleet is the largest depository institution in Torrington: Torrington RMA and the townships of the market, controlling deposits of $3.2 billion, represent- Colebrook, Goshen, and Norfolk in Litchfield County. ing approximately 23.1 percent of market deposits. Waterbury: Waterbury RMA. BankBoston is the 10th largest depository institution in the market, controlling deposits of $260 million, represent- B. Florida Banking Market ing 1.9 percent of market deposits. On consummation of the proposal, Fleet would remain the largest of 38 deposi- West Palm Beach: Palm Beach County east of Loxahatchee tory institutions in the market, controlling deposits of $3.4 and the towns of Indiantown and Hobe Sound in Martin billion, representing 25 percent of market deposits. The County. HHI would increase 87 points to 1283. New London - Fleet is the second largest depository institu- C. Maine Banking Market tion in the market, controlling deposits of $510 million, representing 21.1 percent of market deposits. Portland: Portland RMA and the townships of Baldwin, BankBoston is the 14th largest depository institution in Naples, Pownal, and Sebago in Cumberland County; Day- the market, controlling deposits of $3.8 million, represent- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 771 ing less than 1 percent of market deposits. On consumma- Appendix D tion of the proposal, Fleet would remain the second largest of 13 depository institutions in the market, controlling Banking Markets With Divestitures deposits of $514 million, representing 21.3 percent of market deposits. The HHI would increase 7 points to 1724. A. Connecticut Banking Markets B. Florida Banking Market Hartford - Fleet is the largest depository institution in the market, controlling deposits of $9.8 billion, representing West Palm Beach - Fleet is the 24th largest depository 49.8 percent of market deposits. institution in the market, controlling deposits of $76 mil- BankBoston is the third largest depository institution in lion, representing less than 1 percent of market deposits. the market, controlling deposits of $1.5 billion, represent- BankBoston in the 37th largest depository institution in ing 7.4 percent of market deposits. Fleet proposes to divest the market, controlling deposits of $17 million, also repre- 32 branches, controlling total deposits of $1.5 billion, to an senting less than 1 percent of market deposits. On consumout-of-market competitor. On consummation of the promation of the proposal, Fleet would remain the 24th largest posal, and after accounting for the proposed divestitures, depository institution in the market, controlling deposits of Fleet would remain the largest of 34 depository institutions $93 million, representing less than 1 percent of market in the market, controlling deposits of $9.8 billion, repredeposits. The HHI would remain unchanged at 1115. senting 49.8 percent of market deposits. The HHI would remain unchanged at 2824. C. Maine Banking Market New Haven - Fleet is the third largest depository institution in the market, controlling deposits of $1 billion, represent- Portland - Fleet is the second largest depository institution ing 17.1 percent of market deposits. in the market, controlling deposits of $778 million, repre- BankBoston is the fifth largest depository institution in senting 24.2 percent of market deposits. the market, controlling deposits of $540 million, represent- BankBoston is the 11th largest depository institution in ing 9 percent of market deposits. Fleet proposes to divest the market, controlling deposits of $26 million, represent- three branches, controlling total deposits of $97 million, to ing less than 1 percent of market deposits. On consumma- an out-of-market competitor. On consummation of the protion of the proposal, Fleet would remain the second largest posal, and after accounting for the proposed divestitures, of 14 depository institutions in the market, controlling Fleet would become the largest of 14 depository institudeposits of $804 million, representing 25 percent of market tions in the market, controlling deposits of $1.5 billion, deposits. The HHI would increase 39 points to 2448. representing 24.5 percent of market deposits. The HHI would increase 229 points to 1594. Torrington - Fleet is the third largest depository institution D. Massachusetts Banking Market in the market, controlling deposits of $102.6 million, representing 15.1 percent of market deposits. Greenfield - Fleet is the third largest depository institution BankBoston is the fifth largest depository institution in in the market, controlling deposits of $67 million, reprethe market, controlling deposits of $69 million, representsenting 15.1 percent of market deposits. ing 10.2 percent of market deposits. Fleet proposes to BankBoston is the sixth largest depository institution in divest one branch, controlling deposits of $69 million, to the market, controlling deposits of $20 million, representan out-of-market competitor. On consummation of the proing 4.4 percent of market deposits. On consummation of posal, and after accounting for the proposed divestitures, the proposal, Fleet would remain the third largest of 5 Fleet would remain the third largest of 10 depository depository institutions in the market, controlling deposits institutions in the market, controlling deposits of $102.6 of $87 million, representing 19.5 percent of market deposmillion, representing 15.1 percent of market deposits. The its. The HHI would increase 133 points to 2568. HHI would remain unchanged at 1706. Waterbury - Fleet is the fifth largest depository institution E. New Hampshire Banking Market in the market, controlling deposits of $141 million, representing 5.6 percent of market deposits. Manchester - Fleet is the second largest depository institu- BankBoston is the third largest depository institution in tion in the market, controlling deposits of $589 million, the market, controlling deposits of $416 million, representrepresenting 25.2 percent of market deposits. ing 16.4 percent of market deposits. Fleet proposes to BankBoston is the fourth largest depository institution in divest three branches, controlling total deposits of $185 the market, controlling deposits of $70 million, represent- million. On consummation of the proposal, and after acing 3 percent of market deposits. On consummation of the counting for the proposed divestitures, Fleet would become proposal, Fleet would remain the second largest of eight the third largest of 15 depository institutions in the market, depository institutions in the market, controlling deposits controlling deposits of $372 million, representing 14.6 of $659 million, representing 28.2 percent of market depos- percent of market deposits. The HHI would decrease by 32 its. The HHI would increase 150 points to 3241. points to 1463. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
772 Federal Reserve Bulletin • November 1999 B. Massachusetts Banking Markets Springfield - Fleet is the third largest depository institution in the market, controlling deposits of $897 million, repre- Boston - Fleet is the second largest depository institution in senting 15.8 percent of market deposits. the market, controlling deposits of $12.6 billion, represent- BankBoston is the largest depository in the market, ing 15.2 percent of market deposits. controlling deposits of $1.1 billion, representing 20 percent of market deposits. Fleet proposes to divest four branches, BankBoston is the largest depository institution in the controlling total deposits of $208 million, to an out-ofmarket, controlling deposits of $24 billion, representing market competitor. On consummation of the proposal, and 28.7 percent of market deposits. Fleet proposes to divest after accounting for the proposed divestitures, Fleet would 153 branches, controlling total deposits of $6.7 billion, to become the largest depository institution in the market, an out-of-market competitor, and a total of 14 branches, controlling deposits of $1.8 billion, representing 32.4 percontrolling total deposits of $490 million, to competitively cent of market deposits. The HHI would increase 407 suitable in-market competitors. On consummation of the points to 1603. proposal, and after accounting for the proposed divestitures, Fleet would become the largest of 182 depository Worcester - Fleet is the second largest depository instituinstitutions in the market, controlling deposits of $29.2 tion in the market, controlling deposits of $1.1 billion, billion, representing 35.3 percent of market deposits. The representing 24.6 percent of market deposits. HHI would increase 261 points to 1636. BankBoston is the largest depository institution in the Cape Cod - Fleet is the fourth largest depository institution market, controlling deposits of $1.4 billion, representing in the market, controlling deposits of $331 million, repre- 32.3 percent of market deposits. Fleet proposes to divest 23 senting 11.8 percent of market deposits. branches, controlling total deposits of $1.1 billion, to an out-of-market competitor. On consummation of the pro- BankBoston is the second largest depository institution posal, and after accounting for the proposed divestitures, in the market, controlling deposits of $585 million, repre- Fleet would become the largest of 25 depository institusenting 20.9 percent of market deposits. Fleet proposes to tions in the market, controlling deposits of $1.4 billion, divest one branch, controlling deposits of $12.7 million, to representing 32.3 percent of market deposits. The HHI an out-of-market competitor, and a total of 14 branches, would remain unchanged at 1833. controlling total deposits of $281 million, to competitively suitable in-market competitors. On consummation of the proposal, and after accounting for the proposed divestitures, Fleet would become the second largest of 11 depository institutions in the market, controlling deposits of $585 million, representing 20.9 percent of market deposits. The C. Rhode Island Banking Markets HHI would increase 37 points to 1622. Fall River - Fleet is the sixth largest depository institution Newport - Fleet is the fourth largest depository institution in the market, controlling deposits of $123 million, repre- in the market, controlling deposits of $55 million, representing 11 percent of market deposits. senting 12.6 percent of market deposits. BankBoston is the largest depository institution in the BankBoston is the third largest depository institution in market, controlling deposits of $212 million, representing the market, controlling deposits of $86 million, represent- 19 percent of market deposits. Fleet proposes to divest ing 19.6 percent of market deposits. Fleet proposes to three branches, controlling total deposits of $50.8 million, divest three branches, controlling total deposits of $86 to an out-of-market competitor. On consummation of the million, to an out-of-market competitor. On consummation proposal, and after accounting for the proposed divesti- of the proposal, and after accounting for the proposed tures, Fleet would become the largest of nine depository divestitures, Fleet would remain the fourth largest of five institutions in the market, controlling deposits of $285 depository institutions in the market, controlling deposits million, representing 25.5 percent of market deposits. The of $55 million, representing 12.6 percent of market depos- HHI would increase 187 points to 1501. its. The HHI would remain unchanged at 2437. New Bedford - Fleet is the largest depository institution in Providence - Fleet is the largest depository institution in the market, controlling deposits of $415 million, represent- the market, controlling deposits of $8.6 billion, representing 28.5 percent of market deposits. ing 50 percent of market deposits. BankBoston is the fourth largest depository institution in BankBoston is the third largest depository institution in the market, controlling deposits of $167 million, represent- the market, controlling deposits of $2.3 billion, representing 11.5 percent of market deposits. Fleet proposes to ing 13.6 percent of market deposits. Fleet proposes to divest two branches, controlling total deposits of $105 divest 49 branches, controlling total deposits of $2.5 bilmillion, to an out-of-market competitor. On consummation lion, to an out-of-market competitor. On consummation of of the proposal, and after accounting for the proposed the proposal, and after accounting for the proposed divestidivestitures, Fleet would remain the largest of ten deposi- tures, Fleet would remain the largest of 18 depository tory institutions in the market, controlling deposits of $477 institutions in the market, controlling deposits of $8.6 million, representing 32.8 percent of market deposits. The billion, representing 50.2 percent of market deposits. The HHI would increase 183 points to 2058. HHI would increase 12 points to 3465. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 773 ORDERS ISSUED UNDER BANK MERGER ACT tution in the market, controlling deposits of $25.6 billion, representing approximately 37.6 percent of market depos- United Bank of Philadelphia its. The four branches that United proposes to acquire Philadelphia, Pennsylvania control approximately $61.1 million of deposits, representing less than 1 percent of market deposits. On consumma- Order Approving Acquisition and Establishment of tion of the proposal, United would become the 40th largest Branches depository institution in the Philadelphia banking market, controlling deposits of $168.6 million, representing less United Bank of Philadelphia ("United"), a state member than 1 percent of market deposits. The Herfindahlbank,1 has applied under section 18(c) of the Federal Hirschman Index ("HHI") would not increase and would Deposit Insurance Act (12 U.S.C. § 1828(c)) (the "Bank be 1767 after consummation of the proposal. The proposal Merger Act") to acquire four branches of First Union would be consistent with the Department of Justice Merger National Bank, Charlotte, North Carolina ("First Union") Guidelines ("DOJ Guidelines"),6 and the Department has Philadelphia, Pennsylvania. United also has applied under advised the Board that consummation of the proposal section 9 of the Federal Reserve Act (12 U.S.C. § 321) to would not likely have a significant adverse effect on comestablish branches at the locations of the branches to be petition in any relevant banking market. The other federal acquired, as described in the Appendix. banking agencies also have been afforded an opportunity to Notice of the applications, affording interested persons comment and have not objected to consummation of the an opportunity to submit comments, has been given in proposal. accordance with the Bank Merger Act and the Board's After carefully reviewing these and all other facts of Rules of Procedure (12 C.F.R. 262.3(b)). As required by record, the Board concludes that consummation of the the Bank Merger Act, reports on the competitive effects of proposed transaction would not be likely to result in a the acquisitions were requested from the United States significantly adverse effect on competition or on the con- Attorney General and the other federal banking agencies. centration of banking resources in the Philadelphia banking The time for filing comments has expired, and the Board market or any other relevant banking market. Accordingly, has considered the application and all facts of record in the Board has determined that competitive factors are light of the factors set forth in the Bank Merger Act and consistent with approval. section 9 of the Federal Reserve Act. In reviewing this proposal under the Bank Merger Act The Bank Merger Act prohibits the Board from approv- and section 9 of the Federal Reserve Act, the Board also ing an application if the proposal would result in a monop- has considered the financial and managerial resources and oly or would be in furtherance of an attempt to monopolize future prospects of United. The Board has reviewed these the business of banking.2 The Bank Merger Act also pro- factors in light of all the facts of record, including supervihibits the Board from approving a proposal that would sory reports of examination assessing the financial and substantially lessen competition or tend to create a monop- managerial resources of the bank. oly in any relevant market, unless the Board finds that the The Board has stated and continues to believe that anticompetitive effects of the proposed transaction are capital adequacy is an especially important factor in anaclearly outweighed in the public interest by the probable lyzing the expansion proposals of banking organizations.7 effects of the transaction in meeting the convenience and The Board notes that United has raised additional capital in needs of the community to be served.3 anticipation of and as part of the proposal and would United is the 58th largest depository institution in the remain well capitalized on consummation of the proposal. Philadelphia market,4 controlling deposits of $107.5 mil- The Board also has carefully considered projections prolion, representing less than 1 percent of total deposits controlled by depository institutions in the market ("mar- Corporation, 70 Federal Reserve Bulletin 743 (1984). Thus, the ket deposits").5 First Union is the largest depository insti- Board has regularly included thrift deposits in the calculation of market share on a 50-percent weighted basis. See e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). 1. United is a wholly owned subsidiary of United Bancshares, Inc., 6. Under the DOJ Guidelines, 49 Federal Register 26,823 (June 29, Philadelphia, Pennsylvania. 1984), a market in which the post-merger HHI is between 1000 and 2. 12 U.S.C. § 1828(c)(5)(A). 1800 is considered to be moderately concentrated. The Department of 3. 12 U.S.C. § 1828(c)(5)(B). Justice has informed the Board that a bank merger or acquisition 4. The Philadelphia banking market comprises Philadelphia, Bucks, generally will not be challenged (in the absence of other factors Chester, Delaware, and Montgomery Counties, in Pennsylvania; and indicating anticompetitive effects) unless the post-merger HHI is at Burlington, Camden, Gloucester, and Salem Counties and the south- least 1800 and the merger increases the HHI by more than 200 points. western portion of Mercer County, in New Jersey. The Department of Justice has stated that the higher than normal 5. In this context, depository institutions include community banks, thresholds for an increase in the HHI when screening bank mergers savings banks, and savings associations. All deposit data are as of and acquisitions for anticompetitive effects implicitly recognize the June 30, 1998, and are adjusted for structural changes since that date. competitive effects of limited-purpose and other nondepository finan- Market share data are based on calculations that include the deposits cial entities. of thrift institutions at 50 percent. The Board previously has indicated 7. See, e.g., Deutsche Bank AG, 85 Federal Reserve Bulletin 509, that thrift institutions have become, or have the potential to become, 511 (1999); Chemical Banking Corporation, 82 Federal Reserve significant competitors of commercial banks. See, e.g., Midwest Fi- Bulletin 239, 243 (1996); BankAmerica Corporation, 78 Federal nancial Group, 75 Federal Reserve Bulletin 386 (1989); National City Reserve Bulletin 338, 343 (1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
70 Federal Reserve Bulletin • November 1999 vided by United of the financial benefits that are expected By order of the Board of Governors, effective Septemto result from the proposal, including projected operating ber 7, 1999. revenues and expenses. Based on all the facts of record, including the commitments provided by United in connec- Voting for this action: Chairman Greenspan and Governors Kelley, tion with this case, the Board concludes that considerations Meyer, Ferguson, and Gramlich. relating to the financial and managerial resources and future prospects of United are consistent with approval. ROBERT DEV. FRIERSON Associate Secretary of the Board The Bank Merger Act also requires the Board to consider the convenience and needs of the communities to be served. In considering this factor, the Board has reviewed Appendix United's record of performance under the Community Re- Branch locations to be acquired by United Bank of investment Act, 12 U.S.C. § 2901 etseq. ("CRA"). United Philadelphia, all in Philadelphia, Pennsylvania received an "outstanding" rating at its most recent examination for CRA performance by the Federal Reserve Bank of Philadelphia, as of March 1997. (1) 1620 Wadsworth Avenue. The Board also notes United's role in serving the bank- (2) 2836 West Girard Avenue. ing and credit needs of low-income individuals and minor- (3) 3945^49 Chestnut Street. ity individuals in Philadelphia. Sixty-six percent of the (4) 1501 North Broad Street. census tracts in United's service area are designated as low-income. United offers products and services tailored to Orders Issued Under International Banking Act meet the needs of the community it serves, including checking accounts with no monthly service charges for Caixa Geral de Depdsitos S.A. customers who maintain a $100 minimum balance. United Lisbon, Portugal and its affiliates also provide traditionally underserved individuals with credit counseling and financial workshops that Order Approving Establishment of a Branch address such subjects as personal finances, small business financial management, and the fundamentals of maintain- Caixa Geral de Depositos S.A. ("Bank"), Lisbon, Portuing a banking relationship. Based on its review, and for the gal, a foreign bank within the meaning of the International reasons discussed above, the Board concludes that conve- Banking Act ("IBA"), has applied under section 7(d) of nience and needs considerations, including the CRA perfor- the IBA (12 U.S.C. § 3105(d)) to establish a state-licensed mance records of the institutions involved, are consistent branch in New York, New York. The Foreign Bank Superwith approval. vision Enhancement Act of 1991 ("FBSEA"), which As part of its review of the proposal under section 9 of amended the IBA, provides that a foreign bank must obtain the Federal Reserve Act, the Board also has considered the the approval of the Board to establish a branch in the location of each of the branches to be established by United States. United. As a state member bank, United is authorized to Notice of the application, affording interested persons an establish a branch at the location of each branch it proposes opportunity to submit comments, has been published in a to acquire. The proposal also is consistent with all other newspaper of general circulation in New York, New York provisions of section 9 of the Federal Reserve Act and the (The New York Times, April 7, 1999). The time for filing Board's regulations thereunder.8 comments has expired, and all comments have been con- Based on the foregoing and all the facts of record, the sidered. Board has determined that the proposal should be, and Bank, with assets of approximately $57 billion as of hereby is, approved. The Board's approval is specifically year-end 1998, is the largest banking organization in Portuconditioned on compliance by United with all the commit- gal. Founded in 1876 to serve as the tax collector for the ments made in connection with the applications. For pur- State of Portugal, Bank is now a full-service financial poses of this action, the commitments and conditions relied institution that is wholly owned by the Portuguese State. on in reaching this decision are conditions imposed in Within Portugal, Bank has one bank subsidiary, several writing by the Board and, as such, may be enforced in nonbank subsidiaries, and more than 500 branches. Outside proceedings under applicable law. Portugal, Bank has branches in France, Luxembourg, and The acquisition of the branches may not be consum- Cape Verde and representative offices in several countries. mated before the fifteenth calendar day after the effective Bank also controls three banks in Spain, two in Brazil, and date of this order, or later than three months after the one in each of Mozambique and France. One of Bank's effective date of this order, unless such period is extended Brazilian subsidiaries, Banco Bandeirantes S.A., has a by the Board or by the Federal Reserve Bank of Philadel- branch in New York and a representative office in Miami. phia, acting pursuant to delegated authority. Bank has no other banking or nonbanking operations in the United States. Through the proposed branch, Bank intends to provide services to companies seeking to do business with a Portu- 8. See 12 C.F.R. 208.6. guese bank in New York and to banks in Portuguese- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 775 speaking countries that do not have a U.S. presence. The domestic financial subsidiaries.4 Previous examinations of branch also would provide U.S.-dollar products and ser- Bank have included reviews of risk concentration, risk vices to Bank's affiliates. management, credit quality, credit approval systems, inter- In order to approve an application by a foreign bank to nal audit procedures, accounting control, and capital ratios. establish a branch in the United States, the IBA and Regu- Control of Bank's operations, implemented through borlation K require the Board to determine that the foreign rower, counterparty, issuer, and country limits, is subject to bank applicant engages directly in the business of banking oversight by Bank's head office. Meetings between head outside the United States and has furnished to the Board office management and management of Bank's subsidiaries the information it needs to assess the application ade- and foreign offices occur on a regular basis, and the head quately. The Board generally also must determine that the office also monitors the budgetary outlay for these operaforeign bank is subject to comprehensive supervision or tions. Bank's central auditing department annually preregulation on a consolidated basis by its home country pares an auditing plan to which all offices and subsidiaries supervisor.1 The Board also may take into account addi- must conform. The results of all internal audits are protional standards as set forth in the IBA and Regulation K.2 vided to the Bank of Portugal in an annual report on Bank engages directly in the business of banking outside Bank's internal control systems, which is supplemented by the United States through its banking operations in Portu- ongoing contact between Bank's management and staff of gal and elsewhere. Bank also has provided the Board with the Bank of Portugal. the information necessary to assess the application through Bank's total exposure to its affiliates or to any particular submissions that address the relevant issues. client or group of connected clients may not exceed a Regulation K provides that a foreign bank will be con- certain percentage of Bank's capital. Such large exposures sidered to be subject to comprehensive supervision or must be reported to the Bank of Portugal. regulation on a consolidated basis if the Board determines An annual audit is conducted by independent external that the bank is supervised and regulated in such a manner auditors on Bank's activities and policies, both domestic that its home country supervisor receives sufficient infor- and foreign. In addition, Bank has a statutory auditor that mation on the worldwide operations of the bank, including issues a monthly opinion on Bank's accounts. These exterits relationship to any affiliates, to assess the bank's overall nal audit reports are made available to the Bank of Portufinancial condition and its compliance with law and regula- gal, and external auditors are under a statutory duty to tion.3 The Board has made the following findings with report to the Bank of Portugal any facts that might constiregard to the supervision of Bank. tute a serious breach of the law, affect the continuous Supervision of Portuguese credit institutions, including functioning of the credit institution, or lead the auditor to Bank, is the responsibility of the Bank of Portugal, Portu- express reservations on or to refuse to certify the accounts. gal's central bank. The Bank of Portugal requires Bank to Bank also is subject to an annual inspection conducted submit a semiannual consolidated financial statement and by the Tribunal de Contas, an independent court that is part an annual report on a consolidated and nonconsolidated of the judicial branch of the Portuguese government. The basis. Bank also must submit monthly and/or quarterly Tribunal de Contas reviews and audits state-owned compainformation on solvency and liquidity, risk exposure, ad- nies and state holdings in private limited companies. The ministrative organization, and foreign branches. The Bank aim of the Tribunal de Contas is to safeguard against any of Portugal conducts on-site inspections of Bank and its impropriety involving the use of state funds and to guarantee the application of sound management practices and internal control procedures. Based on all the facts of record, the Board concludes that Bank is subject to comprehensive supervision on a consol- 1. See 12 U.S.C. § 3105(d)(2). idated basis by its home country supervisor. 2. See 12 U.S.C. § 3105(d)(3), (4); 12 C.F.R. 211.24(c). The Board has taken into account the additional stan- 3. See 12 C.F.R. 211.24(c)(1). In assessing this standard, the Board considers, among other factors, the extent to which the home country dards set forth in the IBA and in Regulation K.5 Bank has supervisors: provided the Board with the information necessary to as- (i) ensure that the bank has adequate procedures for monitoring sess the application through submissions that address the and controlling its activities worldwide; relevant issues. In addition, the Bank of Portugal has (ii) obtain information on the condition of the bank and its granted Bank approval to establish the proposed branch. subsidiaries and offices through regular examination reports, audit reports, or otherwise; Portugal's risk-based capital standards conform to E.U. (iii) obtain information on the dealings with and relationship capital standards which are consistent with those estabbetween the bank and its affiliates, both foreign and domestic; lished by the Basle Capital Accord. Bank's capital exceeds (iv) receive from the bank financial reports that are consolidated on a worldwide basis, or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis; 4. Foreign subsidiaries of Bank are directly supervised by the (v) evaluate prudential standards, such as capital adequacy and competent authorities in their respective host states. Bank's domestic risk asset exposure, on a worldwide basis. insurance subsidiary is supervised by the Portuguese Insurance Insti- These are indicia of comprehensive, consolidated supervision; no tute, which is required by law to submit to the Bank of Portugal any single factor is essential and other elements may inform the Board's information necessary for the consolidated supervision of Bank. determination. 5. See 12 U.S.C. § 3105(d)(3), (4); 12 C.F.R. 211.24(c)(2). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
776 Federal Reserve Bulletin • November 1999 the minimum levels that would be required by the Basle set forth in this order, the Board has determined that Capital Accord and is considered equivalent to capital that Bank's application to establish a state-licensed branch in would be required of a U.S. banking organization. Manage- New York should be, and hereby is, approved. Should any rial and other financial resources of Bank also are consis- restrictions on access to information on the operations or tent with approval, and Bank appears to have the experi- activities of Bank or any of its affiliates subsequently ence and capacity to support the proposed branch. In interfere with the Board's ability to determine and enforce addition, Bank has established controls and procedures in compliance by Bank or its affiliates with applicable federal the branch to ensure compliance with applicable U.S. law, statutes, the Board may require or recommend termination and controls and procedures for its worldwide operations of any of Bank's direct or indirect activities in the United generally. States. Approval of this application also is specifically Finally, the Board has reviewed the restrictions on dis- conditioned on Bank's compliance with the commitments closure in relevant jurisdictions in which Bank operates made in connection with this application and with'the and has communicated with relevant government authori- conditions in this order.6 The commitments and conditions ties about access to information. Bank has committed to referred to above are conditions imposed in writing by the make available to the Board such information on the oper- Board in connection with its decision and may be enforced ations of Bank and any affiliate of Bank that the Board in proceedings against Bank, its offices, and its affiliates deems necessary to determine and enforce compliance with under applicable law. the IBA, the Bank Holding Company Act, and other appli- By order of the Board of Governors, effective Septemcable federal law. To the extent that the provision of such ber 27, 1999. information may be prohibited or impeded by law or otherwise, Bank has committed to cooperate with the Voting for this action: Chairman Greenspan and Governors Kelley, Board to obtain any necessary consents or waivers that Meyer, Ferguson, and Gramlich. might be required from third parties in connection with disclosure of certain information. In addition, subject to ROBERT DEV. FRIERSON certain conditions, the Bank of Portugal may share infor- Associate Secretary of the Board mation on Bank's operations with other supervisors, including the Board. In light of these commitments and other facts of record, and subject to the condition described 6. The Board's authority to approve the establishment of the probelow, the Board has concluded that Bank has provided posed office parallels the continuing authority of the State of New adequate assurances of access to any necessary information York to license offices of a foreign bank. The Board's approval of this the Board may request. application does not supplant the authority of the State of New York and its agent, the New York State Banking Department, to license the On the basis of all the facts of record, and subject to the proposed office of Bank in accordance with any terms or conditions commitments made by Bank and the terms and conditions that the New York State Banking Department may impose. APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Applicant(s) Bank(s) Reserve Bank Effective Date Alta Vista Bancshares, Inc. Alta Vista State Bank, Kansas City September 28, 1999 Alta Vista, Kansas Alta Vista, Kansas AmericasBank Corp., AmericasBank, Richmond September 2, 1999 Baltimore, Maryland Baltimore, Maryland Bank On It, Inc., Community Bank of San Joaquin, San Francisco September 2, 1999 Stockton, California Stockton, California Boiling Springs, MHC, Boiling Springs Savings Bank, New York September 22, 1999 Rutherford, New Jersey Rutherford, New Jersey Boiling Springs Bancorp, Rutherford, New Jersey Buckeye Bancshares, Inc., Buckeye Community Bank, Cleveland September 13, 1999 Lorain, Ohio Lorain, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 73 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Capitol Bancorp Ltd., Elkhart Community Bank, Chicago August 19, 1999 Lansing, Michigan Elkhart, Indiana Indiana Community Bancorp Limited, Goshen, Indiana Central of Kansas, Inc., FSB, Inc., Kansas City September 13, 1999 Junction City, Kansas Superior, Nebraska Farmers State Bank and Trust Company, Superior, Nebraska Fanners State Bank, Mankato, Kansas Community Bancshares of Community Bank, Atlanta September 27, 1999 Mississippi, Inc., Meridian, Mississippi Brandon, Mississippi Community National Cumberland National Bank, Atlanta September 16, 1999 Bancorporation, St. Marys, Georgia Ashburn, Georgia Community One Bancshares, Inc., Community National Bank at Bartow, Atlanta September 24, 1999 Bartow, Florida Bartow, Florida Delta Trust & Banking Corporation, SEA Bancshares, Inc., St. Louis September 8, 1999 Little Rock, Arkansas Parkdale, Arkansas Southeast Arkansas Bank, Parkdale, Arkansas DFC Acquisition Corporation Two, Dickinson Financial Corporation, Kansas City September 22, 1999 Kansas City, Missouri Kansas City, Missouri Armed Forces Bank of California, N.A., San Diego, California Doss, Ltd., M & F Bancshares, Inc., Dallas September 23, 1999 Weatherford, Texas Weatherford, Texas Durant Bancorp, Inc., Oklahoma State Bancorporation, Kansas City September 13, 1999 Durant, Oklahoma Ada, Oklahoma Oklahoma State Bank, Ada, Oklahoma First United Bank and Trust Company, Durant, Oklahoma EverTrust Financial Group, Inc., Everett Mutual Bank, San Francisco August 25, 1999 Everett, Washington Everett, Washington Commercial Bank of Everett, Everett, Washington Fifth Third Bancorp, Peoples Bank Corporation of Cleveland September 20, 1999 Cincinnati, Ohio Indianapolis, Indianapolis, Indiana First Security Group, Inc., Dalton Whitfield Bank, Atlanta August 30, 1999 Dalton, Georgia Dalton, Georgia FLAG Financial Corporation, Abbeville Capital Corporation, Atlanta September 1, 1999 LaGrange, Georgia Abbeville, South Carolina Bank of Abbeville, Abbeville, South Carolina FLAG Financial Corporation, Hogansville Bankshares, Inc., Atlanta September 14, 1999 LaGrange, Georgia Hogansville, Georgia The Citizens Bank, Hogansville, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
778 Federal Reserve Bulletin • November 1999 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Eifective Date Florida Business BancGroup, Inc., Bay Cities Bank, Atlanta September 20, 1999 Tampa, Florida Tampa, Florida Gilmer National Bancshares, Inc., Gilmer National Bank, Dallas August 19, 1999 Gilmer, Texas Gilmer, Texas Gilmer National Bancshares of Delaware, Inc., Wilmington, Delaware Harbor Bancorp, Inc., Pacific Financial Corporation, San Francisco September 15, 1999 Aberdeen, Washington Long Beach, Washington Bank of the Pacific, Long Beach, Washington Imperial Bank, Imperial Mutual Savings Bank, San Francisco August 23, 1999 Inglewood, California Kirkland, Washington InterWest Bancorp, Inc., NBT Northwest Bancorp, San Francisco September 2, 1999 Oak Harbor, Washington Tukwila, Washington National Bank of Tukwila, Tukwila, Washington Kercheval Limited Partnership, Montezuma State Bank, Chicago September 9, 1999 Largo, Florida Montezuma, Iowa Mille Lacs Bancorporation, Inc., Rural American Bank - Hinckley, Minneapolis September 10, 1999 Onamia, Minnesota Hinckley, Minnesota Old Mission Bancorp, Inc., Old Mission Bank, Minneapolis September 15, 1999 Sault Ste. Marie, Michigan Sault Ste. Marie, Michigan Olney Bancshares of Texas, Inc., Follett Bancshares, Inc., Dallas September 17, 1999 Olney, Texas Follett, Texas First State Bank of Canadian, Follett Delaware Financial Corporation, Canadian, Texas Wilmington, Delaware Follett National Bank, Follett, Texas Parkway National Bancshares, Inc., Parkway Bank, National Association, Dallas September 29, 1999 Piano, Texas Piano, Texas Patriot National Bancorp, Inc., Patriot National Bank, New York September 10, 1999 Stamford, Connecticut Stamford, Connecticut Pinnacle Bancorp, Inc., Austin Bancshares, Kansas City September 24, 1999 Central City, Nebraska Waverly, Missouri Waverly Bank, Waverly, Missouri Premier Bancshares, Inc., Farmers & Merchants Bank, Atlanta September 13, 1999 Atlanta, Georgia Summerville, Georgia Rae Valley Financials, Inc., Petersburg State Bank, Kansas City September 1, 1999 Petersburg, Nebraska Petersburg, Nebraska Satilla Financial Services, Inc., Satilla Community Bank, Atlanta September 22, 1999 St. Marys, Georgia St. Marys, Georgia Southern Financial Bancorp, Inc., The Horizon Bank of Virginia, Richmond September 15, 1999 Warrenton, Virginia Merrifield, Virginia Synovus Financial Corp., Ready Bank of Fort Walton Beach Atlanta September 2, 1999 Columbus, Georgia Holding Company, TB&C Bancshares, Inc., Fort Walton Beach, Florida Columbus, Georgia Ready Bank of West Florida, Fort Walton Beach, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 779 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date UMB Financial Corporation, Charter Bancshares, Inc., Kansas City September 28, 1999 Kansas City, Missouri Oklahoma City, Oklahoma First Sooner Bancshares, Inc., Charter National Bank, Oklahoma City, Oklahoma Oklahoma City, Oklahoma Village Bancorp, The Village Bank, San Francisco September 1, 1999 St. George, Utah St. George, Utah Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Brookline Bancorp, M.H.C., Eastern Funding, LLC, Boston September 29, 1999 Brookline, Massachusetts New York, New York Brookline Bancorp, Inc., Brookline, Massachusetts Central Illinois Bancorp, Inc., Marine Bank, Chicago September 2, 1999 Pewaukee, Wisconsin Omaha, Nebraska Citigroup, Inc., GlobeSet, Inc., New York September 14, 1999 New York, New York Austin, Texas Citicorp, New York, New York Citicorp Strategic Technology Corporation, New York, New York First Busey Corporation, Eagle BancGroup, Inc., Chicago September 10, 1999 Urbana, Illinois Bloomington, Illinois First Federal Savings and Loan Association of Bloomington, Bloomington, Illinois FFS Investment Services, Bloomington, Illinois First M & F Corporation, Community Federal Bancorp, Inc. St. Louis September 9, 1999 Kosciusko, Mississippi Tupelo, Mississippi Community Federal Bank, Tupelo, Mississippi First Union Corporation, EVEREN Capital Corporation, Richmond September 3, 1999 Charlotte, North Carolina Chicago, Illinois EVEREN Securities, Inc., Chicago, Illinois James River Bankshares, Inc., Colonial Loans, Inc., Richmond September 21, 1999 Suffolk, Virginia Fredericksburg, Virginia Marquette Bancshares, Inc., Itasca Business Credit, Inc., Minneapolis September 21, 1999 Minneapolis, Minnesota Minneapolis, Minnesota Itasca Business Credit, LLC, Minneapolis, Minnesota Marshall & Ilsley Corporation, Cardpro Services, Inc., Chicago September 10, 1999 Milwaukee, Wisconsin Willowbrook, Illinois M&I Data Services, Inc., Milwaukee, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
780 Federal Reserve Bulletin • November 1999 Section A—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date National Bancshares Corporation of NBC Financial, Inc., Dallas September 2, 1999 Texas, San Antonio, Texas San Antonio, Texas Oakland Financial Services, Inc., Oak Tree Title, St. Louis September 1, 1999 Oakland, Tennessee Oakland, Tennessee Stichting Prioriteit ABN AMRO ABN AMRO Advisory, Inc., Chicago September 9, 1999 Holding, New York, New York Amsterdam, The Netherlands Stichting Administratiekantoor ABN AMRO Holding, Amsterdam, The Netherlands ABN AMRO Holding N.V., Amsterdam, The Netherlands ABN AMRO Bank N.V., Amsterdam, The Netherlands Synovus Financial Corp., Wallace & DeMayo, Inc., Atlanta September 7, 1999 Columbus, Georgia Norcross, Georgia U.S. Bancorp, The John Nuveen Company, Minneapolis August 30, 1999 Minneapolis, Minnesota Chicago, Illinois Wells Fargo & Company, Gold Coast Mortgage, San Francisco August 30, 1999 San Francisco, California San Diego, California Norwest Mortgage, Inc., Des Moines, Iowa Southwest Partners, Inc., Des Moines, Iowa Wells Fargo & Company, United Mortgage Group, San Francisco August 30, 1999 San Francisco, California San Diego, California Norwest Mortgage, Inc., Mar-Chris Investment Corporation, Des Moines, Iowa San Diego, California Southwest Partners, Inc., RAS Financial Company, Des Moines, Iowa San Diego, California Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Fifth Third Bancorp, CNB Bancshares, Inc., Cleveland September 14, 1999 Cincinnati, Ohio Evansville, Indiana Norway Bancorp, MHC, Norway Savings Bank, Boston September 17, 1999 Norway, Maine Norway, Maine Norway Bancorp, Inc., Financial Institutions Service Corp., Norway, Maine Lewiston, Maine Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 781 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 Citizens Bank & Trust Company, Bank of Oklahoma, N. A., Kansas City September 14, 1999 Okmulgee, Oklahoma Tulsa, Oklahoma Cumberland Bank, American City Bank, Atlanta September 3, 1999 Carthage, Tennessee Tullahoma, Tennessee The Ohio Bank, National City Bank, Cleveland September 15, 1999 Findlay, Ohio Cleveland, Ohio Sky Bank, National City Bank, Cleveland September 15, 1999 S alineville, Ohio Cleveland, Ohio Southern Financial Bank, The Horizon Bank of Virginia, Richmond September 15, 1999 Warrenton, Virginia Warrenton, Virginia PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the tices. On February 26, 1999, the Board filed a motion to Federal Reserve Banks in which the Board of Governors is not dismiss the action. named a party. Independent Community Bankers of America v. Board of Governors, No. 98-1482 (D.C. Cir., filed October 21, 1998). Petition for review of a Board order dated September 23, Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed 1998, conditionally approving the applications of Travelers August 3, 1999). Employment discrimination action. Group, Inc., New York, New York, to become a bank Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D. holding company by acquiring Citicorp, New York, New Cal., filed July 21, 1999). Action relating to impounded York, and its bank and nonbank subsidiaries. Oral argument bank drafts. was heard on October 1, 1999. Sedgwick v. Board of Governors, No. Civ. 99-0702 (D. Ari- Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) zona, filed April 14, 1999). Action under Federal Tort (S.D.N.Y., filed May 15, 1998). Action to freeze assets of Claims Act alleging violation of bank supervision requireindividual pending administrative adjudication of civil ments. The Board filed a motion to dismiss on June 15, money penalty assessment by the Board. On May 26, 1998, 1999. the court issued a preliminary injunction restraining the Hunter v. Board of Governors, No. 1:98CV02994 (TFH) transfer or disposition of the individual's assets and appoint- (D.D.C., filed December 9, 1998). Action under the Freeing the Federal Reserve Bank of New York as receiver for dom of Information Act and the Privacy Act. The Board those assets. filed a motion to dismiss or for summary judgment on July Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed 22, 1999. May 4, 1998). Appeal and cross-appeal of district court Folstadv. Board of Governors, No. 1:99 CV 124 (W.D. Mich., order granting in part and denying in part the Board's filed February 17, 1999). Freedom of Information Act com- motion for summary judgment seeking prejudgment interest plaint. On March 23, 1999, the Board filed a motion to and a statutory surcharge in connection with a civil money dismiss or for summary judgment. penalty assessed by the Board. On February 24, 1999, the Nelson v. Greenspan, No. 1:99CV00215 (EGS) (D.D.C., filed court granted the Board's appeal and denied the cross- January 28, 1999). Employment discrimination complaint. appeal, and remanded the matter to the district court for On March 29, 1999, the Board filed a motion to dismiss the determination of prejudgment interest due to the Board. action. Fenili v. Davidson, No. C-98-01568-CW (N.D. California, Fraternal Order of Police v. Board of Governors, No. filed April 17, 1998). Tort and constitutional claim arising 1:98CV03116 (WBB) (D.D.C., filed December 22, 1998). out of return of a check. On June 5, 1998, the Board filed its Declaratory judgment action challenging Board labor prac- motion to dismiss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
782 Federal Reserve Bulletin • November 1999 Logan v. Greenspan, No. 1:98CV00049 (EGS) (D.D.C., filed Tex., filed August 21, 1997). Privacy Act case. On June 1, January 9, 1998). Employment discrimination complaint. 1999, the Board filed a motion for summary judgment. On September 29, 1999, the case was dismissed without prejudice. Goldman v. Department of the Treasury, No. 98-9451 (11th Circuit, filed November 10, 1998). Appeal from a District WRITTEN AGREEMENTS APPROVED BY FEDERAL Court order dismissing an action challenging Federal Re- RESERVE BANKS serve notes as lawful money. Kerr v. Department of the Treasury, No. CV-S-97-01877- First Security Bancshares, Inc. DWH (D. Nev., filed December 22, 1997). Challenge to Lake Park, Iowa income taxation and Federal Reserve notes. On September 3, 1998, a motion to dismiss was filed on behalf of all The Federal Reserve Board announced on September 8, federal defendants. The court dismissed the action on 1999, the execution of a Written Agreement by and among March 31, 1999, and on April 28, 1999, the plaintiff filed a First Security Bancshares, Inc., Lake Park, Iowa; the Secunotice of appeal. rity State Bank, Milford, Iowa; and the Federal Reserve Bettersworth v. Board of Governors, No. 97-CA-624 (W.D. Bank of Chicago. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
783 Membership of the Board of Governors of the Federal Reserve System, 1913-99 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
784 Federal Reserve Bulletin • November 1999 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. Resigned Feb. 14, 1994. David W. Mullins, Jr. St. Louis May 21, 1990 Resigned Feb. 5, 1997. Lawrence B. Lindsey Richmond Nov. 26, 1991 Served through June 30, 1998. Susan M. Phillips Chicago Dec. 2, 1991 Term expired Jan. 31, 1996. Alan S. Blinder Philadelphia June 27, 1994 Resigned Feb. 17, 1997. Janet L. Yellen San Francisco Aug. 12, 1994 Laurence H. Meyer .. St. Louis June 24, 1996 Alice M. Rivlin Philadelphia June 25, 1996 Resigned July 16, 1999. Roger W. Ferguson, Jr. Boston Nov. 5, 1997 Edward M. Gramlich Richmond Nov. 5, 1997 Chairmen ^ 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-July 16, 1999 Roger W. Ferguson, Jr Oct. 5, 1999- EX-OFFICIO MEMBERS1 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 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 appointive 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
1 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued All Gross public debt of U.S. Treasury— DOMESTIC FINANCIAL STATISTICS Types and ownership A28 U.S. government securities Money Stock and Bank Credit dealers—Transactions A4 Reserves, money stock, and debt measures A29 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A32 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution Federal Reserve Banks A32 Domestic finance companies—Assets and liabilities A33 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loan and security holding Real Estate Monetary and Credit Aggregates A34 Mortgage markets—New homes A12 Aggregate reserves of depository institutions A35 Mortgage debt outstanding and monetary base A13 Money stock and debt measures Consumer Credit A3 6 Total outstanding Commercial Banking Institutions— A3 6 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A17 Large domestically chartered commercial banks A37 Funds raised in U.S. credit markets A19 Small domestically chartered commercial banks A39 Summary of financial transactions A20 Foreign-related institutions A40 Summary of credit market debt outstanding A41 Summary of financial assets and liabilities Financial Markets All Commercial paper and bankers dollar DOMESTIC NONFINANCIAL STATISTICS acceptances outstanding A22 Prime rate charged by banks on short-term Selected Measures business loans A23 Interest rates—Money and capital markets A42 Nonfinancial business activity A24 Stock market—Selected statistics A42 Labor force, employment, and unemployment A43 Output, capacity, and capacity utilization A44 Industrial production—Indexes and gross value Federal Finance A46 Housing and construction A25 Federal fiscal and financing operations A47 Consumer and producer prices A26 U.S. budget receipts and outlays A48 Gross domestic product and income A27 Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2 Federal Reserve Bulletin • November 1999 INTERNATIONAL STATISTICS Securities Holdings and Transactions A60 Foreign transactions in securities Summary Statistics A61 Marketable U.S. Treasury bonds and A50 U.S. international transactions notes—Foreign transactions A51 U.S. foreign trade A51 U.S. reserve assets Interest and Exchange Rates A51 Foreign official assets held at Federal Reserve A62 Foreign exchange rates Banks A52 Selected U.S. liabilities to foreign official A63 GUIDE TO STATISTICAL RELEASES AND institutions SPECIAL TABLES Reported by Banks in the United States SPECIAL TABLES A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A64 Assets and liabilities of commercial banks, A55 Banks' own claims on foreigners June 30, 1999 A56 Banks' own and domestic customers' claims on A66 Terms of lending at commercial banks, foreigners August 1999 A56 Banks' own claims on unaffiliated foreigners A72 Assets and liabilities of U.S. branches and agencies A57 Claims on foreign countries—Combined of foreign banks, June 30, 1999 domestic offices and foreign branches A76 INDEX TO SPECIAL TABLES Reported by Nonbanking Business Enterprises in the United States A58 Liabilities to unaffiliated foreigners A59 Claims on unaffiliated foreigners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected GNMA Government National Mortgage Association e Estimated GDP Gross domestic product n.a. Not available 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 PMI Private mortgage insurance CMO Collateralized mortgage obligation PO Principal only CRA Community Reinvestment Act of 1977 REIT Real estate investment trust FFB Federal Financing Bank REMIC Real estate mortgage investment conduit FHA Federal Housing Administration RHS Rural Housing Service FHLBB Federal Home Loan Bank Board RP Repurchase agreement FHLMC Federal Home Loan Mortgage Corporation RTC Resolution Trust Corporation 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 G-10 Group of Ten 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. Minus signs are used to indicate (1) a decrease, (2) a negative "State and local government" also includes municipalities, figure, or (3) an outflow. special districts, and other political subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A4 Domestic Nonfinancial Statistics • November 1999 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1998 1999 1999 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q3 Q4 Qlr Q2 Apr.r Mayr June July Aug. Reserves of depository institutions2 1 Total -7.7 -1.8 -1.2 -6.6 7.2 10.4 -40.4 -24.9 2.6 2 Required -8.9 -2.5 1.0 -5.6 11.5 8.0 -41.7 -20.3 1.1 3 Nonborrowed -8.6 -.6 -1.3 -6.7 4.4 11.5 -41.0 -29.6 1.6 4 Monetary base3 6.9 8.7 9.1 10.1 10.3 13.9 6.2 8.0 7.0 Concepts of money and debt4 5 Ml -2.0 5.0 2.8 3.5 7.0 -4.0 -3.9 -1.7 2.9 6 M2 6.8r 11.0 7.2 5.6 8.8 4.5 4.2 5.4 5.5 7 M3 8.6 12.9r 7.6 5.4 8.5 4.9 5.6 4.8 4.9 8 Debt 6.4r 6.3 6.5 6.8 7.5 5.1 5.4 5.1 n.a. Nontransaction components 9 In M25 9.9 13.0 8.7 6.4 9.4 7.3 6.8 7.6 6.3 10 In M3 only6 13.6r 18.4r 8.6 4.7 7.9 6.1 9.5 3.2 3.4 Time and savings deposits Commercial banks 11 Savings, including MMDAs 15.8 17.6 11.6 9.7 17.7 8.0 12.1 13.7 7.6 12 Small time7 .1 .3 -5.5 -3.3 -3.1 -1.8 -2.0 1.0 3.1 13 Large time8'9 3.5 3.8 -.3 -3.2 14.3 -2.5 -7.4 21.0 -9.1 Thrift institutions 14 Savings, including MMDAs 9.0 10.1 12.8 14.6 9.3 27.0 18.2 19.6 4.0 15 Small time7 -7.3 -6.7 -6.5 -7.9 -5.2 -9.4 -14.4 -4.6 1.5 16 Large time8 .5 10.4 7.6 -7.0 4.1 -14.8 -1.4 10.9 6.8 Money market mutual funds 17 Retail 18.8r 28.5r 20.5 10.2 12.4 9.1 7.8 1.5 9.9 18 Institution-only 26.6 41.8 17.9 14.5 21.1 13.8 7.7 -4.6 22.9 Repurchase agreements and Eurodollars 19 Repurchase agreements10 12.5r 1188..9911 14.1 -2.7 -32.6 23.2 53.2 -.4 6.2 20 Eurodollars10 21.7 3.2 -.8 20.4 21.1 -11.8 -1.5 -26.9 -28.3 Debt components4 21 Federal -,6r -2.8r -3.1 -2.3 -1.7 -5.1 .3 .8 n.a. 22 Nonfederal 8.6r 9.2r 9.4 9.5 10.2 8.1 6.8 6.3 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- depository institutions, and (4) Eurodollars (overnight and term) held by U.S. residents at ing during preceding month or quarter. foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with and Canada. Excludes amounts held by depository institutions, the U.S. government, money regulatory changes in reserve requirements. (See also table 1.20.) market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally by summing large time deposits, institutional money fund balances, RP liabilities, adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency and Eurodollars, each seasonally adjusted separately, and adding this result to seasonally component of the money stock, plus (3) (for all quarterly reporters on the "Report of adjusted M2. Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference sectors—the federal sector (U.S. government, not including government-sponsored enterbetween current vault cash and the amount applied to satisfy current reserve requirements. prises or federally related mortgage pools) and the nonfederal sectors (state and local 4. Composition of the money stock measures and debt is as follows: governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, commercial banks other than those owed to depository institutions, the U.S. government, and which are derived from the Federal Reserve Board's flow of funds accounts, are breakforeign banks and official institutions, less cash items in the process of collection and Federal adjusted (that is, discontinuities in the data have been smoothed into the series) and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of month-averaged (that is, the data have been derived by averaging adjacent month-end levels). withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail credit union share draft accounts, and demand deposits at thrift institutions. Seasonally money fund balances, each seasonally adjusted separately. adjusted Ml is computed by summing currency, travelers checks, demand deposits, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities OCDs, each seasonally adjusted separately. (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time term) of U.S. addressees, each seasonally adjusted separately. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 7. Small time deposits—including retail RPs—are those issued in amounts of less than money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions balances at depository institutions and money market funds. Seasonally adjusted M2 is are subtracted from small time deposits. calculated by summing savings deposits, small-denomination time deposits, and retail money 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those fund balances, each seasonally adjusted separately, and adding this result to seasonally booked at international banking facilities. adjusted Ml. 9. Large time deposits at commercial banks less those held by money market funds, M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) depository institutions, the U.S. government, and foreign banks and official institutions. balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 10. Includes both overnight and term. 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 1999 July Aug. July 14 July 21 July 28 Aug. 4 Aug. 11 Aug. 18 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 528,020 527,196 523,374 527,512 527,801 527,977 U.S. government securities2 2 Bought outright—System account 484,748 486,633 487,746 486,856 486,839 487,190 485,555 486,151 487,185 3 Held under repurchase agreements 2,017 1,718 1,296 1,355 1,607 2,190 2,733 2,186 1,052 Federal agency obligations 4 Bought outright 276 255 247 257 254 252 249 249 249 5 Held under repurchase agreements 2,514 3,451 4,751 5,093 1,239 2,637 3,630 4,414 5,647 6 Acceptances 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 18 75 225 16 18 74 217 25 8 Seasonal credit 126 226 273 205 241 257 265 261 267 9 Extended credit 0 0 0 0 0 0 0 0 0 10 Float 281 388 430 285 252 281 759 -64 341 11 Other Federal Reserve assets 32,090 33,061 33,193 32,920 32,927 33,376 34,247 34,387 33,210 12 Gold stock 11,047 11,046 11,047 11,045 11,046 11,047 11,047 11,047 11,047 13 Special drawing rights certificate account 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 14 Treasury currency outstanding 26,950 27,084 27,180 27,062 27,092 27,121 27,151 27,165 27,179 ABSORBING RESERVE FUNDS 15 Currency in circulation 528,619 533,769 536,032 534,748 533,058 532,879 534,495 535,864 536,357 16 Treasury cash holdings 108 70 69 87 56 53 57 58 62 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,929 5,221 5,076 5,264 5,056 4,901 5,105 5,100 5,080 18 Foreign 214 213 196 235 198 205 220 173 207 19 Service-related balances and adjustments . . 6,961 7,110 7,020 7,030 7,215 7,311 7,010 7,113 7,005 20 Other 232 271 274 276 287 274 250 293 267 21 Other Federal Reserve liabilities and capital . 17,638 17,611 18,110 17,584 17,462 17,650 18,272 18,256 17,860 22 Reserve balances with Federal Reserve Banks 8,566 7,872 7,668 8,281 6,379 9,296 8,500 7,356 7,564 End-of-month figures Wednesday figures July Aug. July 14 July 21 July 28 Aug. 4 Aug. 11 Aug. 18 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 527,785 534,796 532,139 520,437 527,669 526,722 534,827 526,596 U.S. government securities2 2 Bought outright—System account3 484,866 486,103 490,198 487,411 486,677 487,589 484,987 486,465 488,290 3 Held under repurchase agreements 9,100 3,195 2,575 3,172 415 2,355 440 5,660 665 Federal agency obligations 4 Bought outright 259 249 238 254 254 249 249 249 5 Held under repurchase agreements 5,179 3,280 9,195 6,986 1,170 4,135 6,320 4,900 6 Acceptances 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 56 82 53 2 67 12 36 1,343 20 8 Seasonal credit 164 266 285 215 252 265 259 270 282 9 Extended credit 0 0 0 0 0 0 0 0 0 10 Float 272 81 -291 916 -1,445 -508 1,796 -463 599 11 Other Federal Reserve assets 32,968 34,529 32,544 33,182 33,045 33,572 34,156 34,982 31,590 12 Gold stock 11,046 11,048 11,045 11,045 11,047 11,047 11,047 11,047 11,047 13 Special drawing rights certificate account 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 14 Treasury currency outstanding 27,004 27,151 27,207 27,062 27,092 27,121 27,151 27,165 27,179 ABSORBING RESERVE FUNDS 15 Currency in circulation 532,026 533,517 538,374 534,634 533,563 534,600 536,277 537,250 537,091 16 Treasury cash holdings 90 57 56 53 57 58 59 83 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,720 4,984 5,559 5,491 4,566 5,311 5,622 5,427 4,903 18 Foreign 410 257 166 265 169 321 167 165 241 19 Service-related balances and adjustments . . 7,215 7,010 6,923 7,030 7,216 7,311 7,010 7,113 7,005 20 Other 241 229 225 276 289 232 272 465 263 21 Other Federal Reserve liabilities and capital . 17,662 18,389 18,728 17,422 17,125 17,437 17,987 17,830 17,525 22 Reserve balances with Federal Reserve Banks' 14,749 9,739 11,190 13,271 3,794 8,766 5,726 12,930 5,911 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 3. Includes compensation that adjusts for the effects of inflation on the principal of 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged inflation-indexed securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 4. Excludes required clearing balances and adjustments to compensate for float. under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A6 Domestic Nonfinancial Statistics • November 1999 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1996 1997 1998 1999 Dec. Dec. Dec. Feb. Mar. Apr. Mayr June July Aug. 1 Reserve balances with Reserve Banks" 13,330 10,664 9,021 8,578 8,851 9,238 10,070 8,539 7,797 7,802 2 Total vault cash3 44,525 44,740 44,305 46,468 42,898 42,164r 42,459 42,632 44,059 44,664 3 Applied vault cash4 37,844 37,255 35,997 36,660 34,270 34,407 34,805 33,856 34,005 34,070 4 Surplus vault cash5 6,681 7,485 8,308 9,809 8,628 1,151' 7,654 8,776 10,054 10,594 5 Total reserves6 51,174 47,920 45,018 45,237 43,121 43,645 44,875 42,394 41,802 41,871 6 Required reserves 49,758 46,235 43,435 44,022 41,816 42,486 43,619 41,133 40,726 40,744 7 Excess reserve balances at Reserve Banks7 1,416 1,685 1,583 1,215 1,305 1,159 1,256 1,261 1,076 1,127 8 Total borrowings at Reserve Banks8 155 324 117 116 65 166 127 145 309 344 9 Seasonal borrowings 68 79 15 9 18 39 89 127 226 271 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 1999 May 5 May 19 June 2' June 16 June 30 July 14 July 28 Aug. 11 Aug. 25 Sept. 8 1 Reserve balances with Reserve Banks2 10,547 9,878 10,096 8,546 8,309 7,526 8,041 7,923 7,421 8,470 2 Total vault cash3 41,595r 42,563r 42,697 41,829 43,426 44,019 43,899 44,994 44,786 43,774 3 Applied vault cash4 34,586 34,749 34,962 33,492 34,062 33,788 34,198 34,123 34,003 34,128 4 Surplus vault cash5 7,010r 7,814r 7,736 8,337 9,365 10,231 9,702 10,871 10,783 9,646 5 Total reserves6 45,133 44,626 45,058 42,037 42,371 41,314 42,238 42,046 41,423 42,598 6 Required reserves 43,852 43,533 43,623 40,883 41,027 40,303 41,098 40,967 40,289 41,397 7 Excess reserve balances at Reserve Banks7 1,281 1,093 1,434 1,154 1,343 1,011 1,140 1.078 1,134 1,201 8 Total borrowings at Reserve Banks8 223 103 117 114 180 331 266 409 304 318 9 Seasonal borrowings 59 85 106 100 158 196 249 263 273 284 10 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistica lrelease. 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. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 8. Also includes adjustment credit. those banks and thrifts that are not exempt from reserve requirements. Dates refer to the 9. Consists of borrowing at the discount window under the terms and conditions estabmaintenance periods in which the vault cash can be used to satisfy reserve requirements. lished for the extended credit program to help depository institutions deal with sustained 4. All vault cash held during the lagged computation period by "bound" institutions (that liquidity pressures. Because there is not the same need to repay such borrowing promptly as is, those whose required reserves exceed their vault cash) plus the amount of vault cash with traditional short-term adjustment credit, the money market effect of extended credit is applied during the maintenance period by "nonbound" institutions (that is, those whose vault similar to that of nonborrowed reserves. cash exceeds their required reserves) to satisfy current reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Policy Instruments Al 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit' Seasonal credit Extended credit Special Liquidity Facility credit Federal Reserve Bank On Effective Previous On Effective Previous On Effective Previous On Effective 10/8/99 date rate 10/8/99 date rate 10/8/99 date rate 10/8/99 date Boston 8/24/99 5.30 6.05 10/7/99 6.75 New York . .. 8/24/99 Philadelphia . 8/24/99 Cleveland ... 8/24/99 Richmond . .. 8/24/99 Atlanta 8/24/99 Chicago 8/24/99 St. Louis 8/24/99 Minneapolis . 8/25/99 Kansas City . . 8/24/99 Dallas 8/26/99 San Francisco 8/24/99 10/7/99 Range of rates for adjustment credit in recent years Range (or F.R. Bank (or F.R. Bank Range (or level)—All of 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 1982—July 20 11.5-12 11.5 1990—Dec. 19 6.5 6.5 23 11.5 11.5 1978—Jan. 9 6-6.5 6.5 Aug. 2 11-11.5 11 1991—Feb. 1 .... 6-6.5 6 20 6.5 6.5 3 11 11 4 .. . . 6 6 May 11 6.5-7 7 16 10.5 10.5 Apr. 30 .... 5.5-6 5.5 12 7 7 27 10-10.5 10 May 2 5.5 5.5 July 3 7-7.25 7.25 30 10 10 Sept. 13 5-5.5 5 10 7.25 7.25 Oct. 12 9.5-10 9.5 17 .... 5 5 Aug. 21 7.75 7.75 13 9.5 9.5 Nov. 6 .... 4.5-5 4.5 Sept. 22 8 8 Nov. 22 9-9.5 9 7 .... 4.5 4.5 Oct. 16 8-8.5 8.5 26 9 9 Dec. 20 .... 3.5-4.5 3.5 20 8.5 8.5 Dec. 14 8.5-9 9 24 .... 3.5 3.5 Nov. 1 8.5-9.5 9.5 15 8.5-9 8.5 3 9.5 9.5 17 8.5 8.5 1992—July 2 .... 3-3.5 3 1 .... 3 3 1979—July 20 10 10 1984—Apr. 9 8.5-9 9 Aug. 17 10-10.5 10.5 13 9 9 1994—May 17 3-3.5 3.5 20 10.5 10.5 Nov. 21 8.5-9 8.5 18 3.5 3.5 Sept. 19 10.5-11 11 26 8.5 8.5 Aug. 16 ... . 3.5-4 4 21 11 11 Dec. 24 8 8 18 .... 4 4 Oct. 8 11-12 12 Nov. 15 4-4.75 4.75 10 12 12 1985—May 20 7.5-8 7.5 17 .... 4.75 4.75 24 7.5 7.5 1980—Feb. 15 12-13 13 1995—Feb. 1 .... 4.75-5.25 5.25 19 13 13 1986—Mar. 7 7-7.5 7 9 .... 5.25 5.25 May 29 12-13 13 10 7 7 30 12 12 Apr. 21 6.5-7 6.5 1996—Jan. 31.... 5.00-5.25 5.00 June 13 11-12 11 23 6.5 6.5 Feb. 5 .... 5.00 5.00 16 11 11 July 11 6 6 July 28 10-11 10 Aug. 21 5.5-6 5.5 1998—Oct. 15 4.75-5.00 4.75 29 10 10 22 5.5 5.5 16 .... 4.75 4.75 Sept. 26 11 11 Nov. 17 .... 4.50-4.75 4.50 Nov. 17 12 12 1987—Sept. 4 5.5-6 6 19 4.50 4.50 Dec. 5 12-13 13 11 6 6 8 13 13 1999—Aug. 24 4.50-4.75 4.75 1981—May 5 13-14 14 1988—Aug. 9 6-6.5 6.5 26 .... 4.75 4.75 8 14 14 11 6.5 6.5 Nov. 2 13-14 13 In effect Oct. 8, 1999 4.75 4.75 6 13 13 1989—Feb. 24 6.5-7 7 Dec. 4 12 12 27 7 7 1. Available on a short-term basis to help depository institutions meet temporary needs for ordinarily is reestablished on the first business day of each two-week reserve maintenance funds that cannot be met through reasonable alternative sources. The highest rate established period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis for loans to depository institutions may be charged on adjustment credit loans of unusual size points. that result from a major operating problem at the borrower's facility. 4. Available in the period between October 1, 1999, and April 7, 2000, to help depository 2. Available to help relatively small depository institutions meet regular seasonal needs for institutions in sound financial condition meet unusual needs for funds in the period around the funds that arise from a clear pattern of intrayearly movements in their deposits and loans and century date change. The interest rate on loans from the special facility is the Federal Open that cannot be met through special industry lenders. The discount rate on seasonal credit takes Market Committee's intended federal funds rate plus 150 basis points. into account rates charged by market sources of funds and ordinarily is reestablished on the 5. For earlier data, see the following publications of the Board of Governors: Banking and first business day of each two-week reserve maintenance period; however, it is never less than Monetary Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest, 1970the discount rate applicable to adjustment credit. 1979. 3. May be made available to depository institutions when similar assistance is not In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit reasonably available from other sources, including special industry lenders. Such credit may borrowings by institutions with deposits of $500 million or more that had borrowed in be provided when exceptional circumstances (including sustained deposit drains, impaired successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was access to money market funds, or sudden deterioration in loan repayment performance) or in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed practices involve only a particular institution, or to meet the needs of institutions experiencing on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to difficulties adjusting to changing market conditions over a longer period (particularly at times 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the charged on extended-credit loans outstanding less than thirty days; however, at the discretion surcharge was changed from a calendar quarter to a moving thirteen-week period. The of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a surcharge was eliminated on Nov. 17, 1981. flexible rate somewhat above rates charged on market sources of funds is charged. The rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A8 Domestic NonfinancialS tatistics • November 1999 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of Effective date deposits Net transaction accounts2 1 $0 million-$46.5 million3 33333 1111122222/////3333311111/////9999988888 1111100000 1111122222/////3333311111/////9999988888 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 December 31, 1998, for depository institutions that report include commercial banks, savings banks, savings and loan associations, credit unions, weekly, and with the period beginning January 14, 1999, for institutions that report quarterly, agencies and branches of foreign banks, and Edge Act corporations. the exemption was raised from $4.7 million to $4.9 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 l/i years was reduced from 3 percent to 1 xfi percent for by check, draft, debit card, or similar order payable directly to third parties) are savings the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that deposits, not transaction accounts. began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts nonpersonal time deposits with an original maturity of less than 1 l/i years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of 11/2 as of June 30 of each year. Effective with the reserve maintenance period beginning years or more has been zero since Oct. 6, 1983. December 31, 1998, for depository institutions that report weekly, and with the period 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero beginning January 14, 1999, for institutions that report quarterly, the amount was decreased in the same manner and on the same dates as the reserve requirement on nonpersonal time from $47.8 million to $46.5 million. deposits with an original maturity of less than 1 Vi 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 1999 TTyypp aa ee nn dd oo ff mm ttrr aa aa ttuu nn rr ss ii aa tt cc yy tt iioonn 11999966 11999977 11999988 Jan. Feb. Mar. Apr. May June July U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 9,901 9,147 3,550 0 0 0 0 0 00 0 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 426,928 436,257 450,835 35,069 36,862 35,065 48,142 37,107 35,045 42,037 4 For new bills 426,928 435,907 450,835 35,069 36,862 35,065 48,142 37,107 35,045 42,037 5 Redemptions 0 0 2,000 0 0 0 0 0 0 0 Others within one year 6 Gross purchases 524 5,549 6,297 0 2,103 1,060 1,677 1,421 880 951 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 30,512 41,716 46,062 2,865 5,578 3,015 3,768 3,768 2,740 3,279 9 Exchanges -41,394 -27,499 -49,434 -400 -7,458 -5,956 -3,370 -4,607 -5,540 -368 10 Redemptions 2,015 1,996 2,676 492 0 0 726 0 0 41 One to five years 11 Gross purchases 3,898 20,080 12,901 0 2,752 2,428 3,362 4,442 948 0 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -25,022 -37,987 -37,777 -2,865 -4,928 — 3,015 -3,768 -3,768 -2,740 -3,279 14 Exchanges 31,459 20,274 37,154 0 4,778 5,956 3,020 2,562 5,540 0 Five to ten years 15 Gross purchases 1,116 3,449 2,294 0 335 346 945 1,584 65 0 1ft Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,469 -1,954 -5,908 0 -650 0 0 0 0 0 18 Exchanges 6,666 5,215 7,439 400 1,340 0 0 2,045 0 373 More than ten years 19 Gross purchases 1,655 5,897 4,884 615 0 2,404 262 2,890 0 0 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -20 -1,775 -2,377 0 0 0 0 0 0 0 22 Exchanges 3,270 2,360 4,842 0 1,340 0 350 0 0 0 All maturities 23 Gross purchases 17,094 44,122 29,926 615 5,190 6,238 6,246 10,337 1,893 951 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 2,015 1,996 4,676 492 0 0 726 0 0 41 Matched transactions 26 Gross purchases 3,092,399 3,577,954 4,395,430 365,779 324,078 393,267 366,838 356,960 380,872 347,067 27 Gross sales 3,094,769 3,580,274 4,399,330 363,604 322,669 394,865 364,476 358,362 380,464 346,747 Repurchase agreements 28 Gross purchases 457,568 810,485 512,671 21,968 26,098 62,878 45,067 27,605 17,710 27,707 29 Gross sales 450,359 809,268 514,186 37,157 27,025 53,706 48,867 30,531 14,614 33,612 30 Net change in U.S. Treasury securities 19,919 41,022 19,835 -12,891 5,672 13,812 4,082 6,008 5,397 -4,675 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 0 0 0 0 32 Gross sales 0 0 25 0 0 0 0 0 0 0 33 Redemptions 409 1,540 322 2 0 25 0 0 52 10 Repurchase agreements 34 Gross purchases 75,354 160,409 284,316 23,577 37,416 35,731 20,623 38,167 32,786 4466,,994411 35 Gross sales 74,842 159,369 276,266 31,744 36,067 34,009 22,937 36,962 32,104 48,840 36 Net change in federal agency obligations 103 -500 7,703 -8,169 1,349 1,697 -2,314 1,205 630 -1,909 37 Total net change in System Open Market Account... 20,021 40,522 27,538 -21,060 7,021 15,509 1,768 7,213 6,028 -6,584 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market 2. Transactions exclude changes in compensation for the effects of inflation on the principal Account; all other figures increase such holdings. of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A10 Domestic Nonfinancial Statistics • November 1999 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1999 1999 July 28 Aug. 4 Aug. 11 Aug. 18 Aug. 25 June 30 July 31 Aug. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,047 11,047 11,047 11,047 11,046 11,046 11,048 11,045 2 Special drawing rights certificate account 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 3 Coin 300 305 300 302 302 311 322 294 Loans 4 To depository institutions 276 295 1,614 302 321 220 348 338 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 249 249 249 249 238 259 249 223388 8 Held under repurchase agreements 4,135 4,800 6,320 4,900 8,250 5,179 3,280 9,195 9 Total U.S. Treasury securities 489,944 485,427 492,125 488,955 491,291 493,966 489,298 492,773 10 Bought outright2 487,589 484,987 486,465 488,290 490,096 484,866 486,103 490,198 11 Bills 199,934 197,331 198,810 199,758 199,218 198,127 198,447 199,320 12 Notes 209,771 209,771 209,771 209,573 210,829 208,855 209,771 210,829 13 Bonds 77.884 77,884 77,884 78,959 80,049 77,884 77,884 80,049 14 Held under repurchase agreements 2,355 440 5,660 665 1,195 9,100 3,195 2,575 15 Total loans and securities 494,605 490,771 500,308 494,407 500,101 499,624 493,175 502,544 16 Items in process of collection 6,692 9,302 6,955 7,081 7,130 7,765 5,087 9,328 17 Bank premises 1,329 1,327 1,323 1,323 1,330 1,321 1,327 1,332 Other assets 18 Denominated in foreign currencies3 14,814 15,501 15,505 15,509 15,513 14,799 15,498 15,845 19 All other4 17,502 17,378 18,171 14,855 15,541 16,898 17,723 15,445 20 Total assets 554,488 553,830 561,808 552,725 559,163 559,964 552,378 564,033 LIABILITIES 21 Federal Reserve notes 507,836 509,489 510,443 510,297 510,430 505,423 506,746 511,545 22 Total deposits 22,528 18,763 26,674 17,875 24,206 29,527 22,112 24,750 23 Depository institutions 16,663 12,701 20,617 12,467 18,375 22,156 16,642 18,800 24 U.S. Treasury—General account 5,311 5,622 5,427 4,903 5,401 6,720 4,984 5,559 25 Foreign—Official accounts 321 167 165 241 164 410 257 166 26 Other 232 272 465 263 266 241 229 225 27 Deferred credit items 6,686 7,591 6,861 7,028 6,593 7,352 5,131 9,011 28 Other liabilities and accrued dividends5 4,337 4,219 4,528 4,186 4,558 4,654 4,402 4,605 29 Total liabilities 541,387 540,063 548,505 539,386 545,788 546,956 538,391 549,911 CAPITAL ACCOUNTS 30 Capital paid in 6,296 6,300 6,295 6,297 6,302 6,282 6,296 6,308 31 Surplus 5,952 5,952 5,952 5,952 5,952 5,952 5,952 5,952 32 Other capital accounts 853 1,515 1,056 1,089 1,121 775 1,739 1,863 33 Total liabilities and capital accounts 554,488 553,830 561,808 552,725 559,163 559,964 552,378 564,033 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Banks) 744,902 751,635 759,846 767,675 774,639 726,892 746,929 780,358 36 LESS: Held by Federal Reserve Banks 237,066 242,145 249,403 257,379 264,208 221,469 240,184 268,813 37 Federal Reserve notes, net 507,836 509,489 510,443 510,297 510,430 505,423 506,746 511,545 Collateral held against notes, net 38 Gold certificate account 11,047 11,047 11,047 11,047 11,046 11,046 11,048 11,045 39 Special drawing rights certificate account 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 488,589 490,243 491,197 491,049 491,184 486,177 487,498 492,300 42 Total collateral 507,836 509,489 510,443 510,297 510,430 505,423 506,746 511,545 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 includes compensation that adjusts for the effects of inflation on 5. Includes exchange-translation account reflecting the monthly revaluation at market the principal of inflation-indexed securities. Excludes securities sold and scheduled to be exchange rates of foreign exchange commitments. bought back under matched sale-purchase transactions. 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 1999 1999 July 28 Aug. 4 Aug. 11 Aug. 18 Aug. 25 June 30 July 31 Aug. 31 1 Total loans 277 295 478 302 315 193 348 338 2 Within fifteen days' 245 110 288 278 288 159 228 189 3. Sixteen days to ninety days 32 185 190 24 28 34 120 149 4 Total U.S. Treasury securities2 489,944 485,427 486,465 488,955 491,291 493,966 489,298 492,763 5 Within fifteen days' 14,331 15,333 21,206 18,796 13,846 24,353 7,883 11,187 6 Sixteen days to ninety days 101,194 94,861 95,431 99,333 99,148 92,490 107,061 100,038 7 Ninety-one days to one year 139,542 140,125 140,380 135,094 140,219 142,621 139,477 144,224 8 One year to five years 122,393 122.624 122,624 122,286 123,110 115,147 122,393 122,346 9 Five years to ten years 49,861 49,861 49,861 49,748 50,195 49,487 49,861 50,195 10 More than ten years 62,623 62,623 62,623 63,698 64,773 62,623 62,623 64,773 11 Total federal agency obligations 4,384 5,049 6,569 5,149 8,488 5,438 3,529 5,168 12 Within fifteen days' 4,135 4,800 6,331 4,911 8,250 5,184 3,280 4,930 13 Sixteen days to ninety days 31 31 20 27 27 16 31 27 14 Ninety-one days to one year 48 48 48 41 41 68 48 41 15 One year to five years 20 20 20 20 20 20 20 20 16 Five years to ten years 150 150 150 150 150 150 150 150 17 More than ten years 0 0 0 0 0 0 0 0 1. Holdings under repurchase agreements are classified as maturing within fifteen days in 2. Includes compensation that adjusts for the effects of inflation on the principal of accordance with maximum maturity of the agreements. inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A12 Domestic Financial Statistics • November 1999 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1999 IItteemm 1995 1996 1997 1998 Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 56.45 50.16 46.86 44.90 45.13 44.55 43.72 43.98 44.36 42.87 41.98 42.07 2 Nonborrowed reserves4 56.20 50.01 46.54 44.79 44.92 44.44 43.65 43.81 44.23r 42.72 41.67 41.72 3 Nonborrowed reserves plus extended credit5 56.20 50.01 46.54 44.79 44.92 44.44 43.65 43.81 44.23r 42.72 41.67 41.72 4 Required reserves 55.16 48.75 45.18 43.32 43.59 43.34 42.41 42.82 43.11 41.61 40.90 40.94 5 Monetary base6 434.10 451.37 478.88 512.32 516.81 520.84 524.23 528.74 534.86r 537.63 541.20 544.37 Not seasonally adjusted 6 Total reserves7 58.02 51.45 48.01 45.12 46.34 45.25 43.14 43.67 44.91 42.43 41.85 41.92 7 Nonborrowed reserves 57.76 51.30 47.69 45.00 46.14 45.13 43.08 43.50 44.78r 42.29 41.54 41.58 8 Nonborrowed reserves plus extended credit5 57.76 51.30 47.69 45.00 46.14 45.13 43.08 43.50 44.78r 42.29 41.54 41.58 9 Required reserves8 56.73 50.04 46.33 43.54 44.81 44.03 41.84 42.51 43.65 41.17 40.77 40.80 10 Monetary base9 439.03 456.63 484.98 518.28 520.01 519.70 523.35 526.77 533.12r 535.88 540.98 543.82 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 57.90 51.17 47.92 45.02 46.35 45.24 43.12 43.65 44.88 42.39 41.80 41.87 12 Nonborrowed reserves 57.64 51.02 47.60 44.90 46.14 45.12 43.06 43.48 44.75 42.25 41.49 41.53 13 Nonborrowed reserves plus extended credit5 57.64 51.02 47.60 44.90 46.14 45.12 43.06 43.48 44.75 42.25 41.49 41.53 14 Required reserves 56.61 49.76 46.24 43.44 44.81 44.02 41.82 42.49 43.62 41.13 40.73 40.74 15 Monetary base12 444.45 463.40 491.79 525.06 527.59 526.85 530.30 533.49 539.98r 542.82 548.06 550.82 16 Excess reserves13 1.29 1.42 1.69 1.58 1.53 1.22 1.31 1.16 1.26 1.26 1.08 1.13 17 Borrowings from the Federal Reserve .26 .16 .32 .12 .21 .12 .07 .17 .13 .15 .31 .34 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 February 1984, currency and vault cash figures have been measured over requirements. the computation periods ending on Mondays. 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). reserves (line 16). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary and Credit Aggregates A13 1.21 MONEY STOCK AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1999 1995 1996 1997 1998 IItteemm Dec. Dec. Dec. Dec. May' June July Aug. Seasonally adjusted Measures2 1 Ml 1,126.7 1,081.3 1,074.9 1,093.4 1,104.7 1,101.1 1,099.5 1,102.2 2 M2 3,649.1 3,823.9 4,046.4' 4,401.0r 4,505.1 4,520.8 4,541.0 4,561.9 3 M3 4,618.5 4,955.6 5,403.4' 5,995.8' 6,127.5 6,156.1 6,180.7 6,206.1 4 Debt 13,716.1' 14,460.8r 15,224.0' 16,244.9' 16,701.8 16,776.4 16,847.2 n.a. Ml components 5 Currency3 372.3 394.1 424.5 459.2 480.9 484.1 448877..33 449900..99 6 Travelers checks4 8.3 8.0 7.7 7.8 7.8 8.2 8.6 8.5 7 Demand deposits5 389.4 403.0 396.5 377.5 369.4 362.9 362.6 363.1 8 Other checkable deposits 356.7 276.2 246.2 248.8 246.5 245.9 241.0 239.7 Nontransaction components 9 In M27 2,522.4 2,742.6 2,971.5' 3,307.6' 3,400.4 3,419.8 3,441.5 3,459.7 10 In M3 only8 969.4 1,131.7 l^.O1 1,594.8' 1,622.4 1,635.3 1,639.7 1,644.3 Commercial banks 11 Savings deposits, including MMDAs 775.3 905.2 1,022.9 1,189.8 1,233.9 1,246.3 1,260.5 1,268.5 12 Small time deposits9 575.0 593.7 626.1 626.0 613.5 612.5 613.0 614.6 13 Large time deposits10' 11 346.6 414.8 490.2 541.0 533.5 530.2 539.5 535.4 Thrift institutions 14 Savings deposits, including MMDAs 359.8 367.1 377.3 415.2 441.1 447.8 455.1 456.6 15 Small time deposits9 356.7 353.8 343.2 325.9 316.7 312.9 311.7 312.1 16 Large time deposits10 74.5 78.4 85.9 89.1 88.0 87.9 88.7 89.2 Money market mutual funds 17 Retail 455.5 522.8 602.0' 775500..77'' 795.1 800.3 801.3 807.9 18 Institution-only 255.9 313.3 379.9 516.2 544.6 548.1 546.0 556.4 Repurchase agreements and Eurodollars 19 Repurchase agreements12 198.7 211.3 251.7' 229977..88rr 295.6 308.7 308.6 310.2 20 Eurodollars12 93.7 113.9 149.3' 150.7 160.6 160.4 156.8 153.1 Debt components 21 Federal debt 3,639.lr 3,781.3' 3,800.3' 33,,775500..88'' 3,702.8 3,703.6 3,706.2 n.a. 22 Nonfederal debt 10,077.0r 10,679.5' 11,423.7' 12,494.2' 12,999.1 13,072.8 13,141.0 n.a. Not seasonally adjusted Measures1' 23 Ml 1,152.4 1,104.9 1,097.4 1,115.3 1,096.7 1,098.3 1,098.0 1,097.4 24 M2 3,671.7 3,843.7 4,064.6' 4,417.8' 4,484.5 4,508.7 4,531.2 4,556.3 25 M3 4,638.0 4,972.5 5,419.6' 6,011.9r 6,112.6 6,139.6 6,151.5 6,189.2 26 Debt 13,716.6r 14,459.3' 15,221.1' 16,241.8' 16,651.9 16,724.7 16,781.6 n.a. Ml components 27 Currency3 376.2 397.9 428.9 464.2 479.9 483.2 487.8 490.2 28 Travelers checks4 8.5 8.3 7.9 8.0 7.9 8.1 8.3 8.2 29 Demand deposits5 407.2 419.9 412.3 392.4 363.6 361.3 362.6 361.7 30 Other checkable deposits6 360.5 278.8 248.3 250.7 245.3 245.7 239.4 237.4 Nontransaction components 31 In M27 2,519.3 2,738.9 2,967.2' 3,302.5' 3,387.8 3,410.4 3,433.2 3,458.8 32 In M3 only8 966.4 1,128.8 1,355.0' 1,594.1' 1,628.2 1,630.9 1,620.3 1,633.0 Commercial banks 33 Savings deposits, including MMDAs 774.1 903.3 1,020.4 1,186.8 1,235.2 1,249.8 1,261.4 1,267.7 34 Small time deposits9 573.8 592.7 625.3 625.4 612.3 611.1 612.8 614.2 35 Large time deposits10, 11 345.8 413.3 487.7 537.4 539.3 535.7 539.3 535.6 Thrift institutions 36 Savings deposits, including MMDAs 359.2 366.3 376.4 414.1 441.6 449.1 455.4 456.3 37 Small time deposits9 355.9 353.2 342.8 325.6 316.0 312.2 311.6 311.9 38 Large time deposits10 74.3 78.1 85.4 88.5 89.0 88.8 88.7 89.2 Money market mutual funds 39 Retail 456.1 523.2 602.3' 750.6r 782.7 788.2 792.1 808.8 40 Institution-only 257.7 316.0 384.5 523.3 538.3 540.6 533.4 548.0 Repurchase agreements and Eurodollars 41 Repurchase agreements12 193.8 205.7 245.1' 229900..55'' 302.1 308.6 305.9 308.4 42 Eurodollars12 94.9 115.7 152.3 154.5 159.5 157.3 153.1 151.8 Debt components 43 Federal debt 3,645.9 3,787.9 3,805.8 3,754.9 3,674.2 3,662.8 3,652.3 n.a. 44 Nonfederal debt 10,070.7r 10,671.4' 11,415.3' 12,486.8' 12,977.7 13,061.9 13,129.3 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A14 Domestic Nonfinancial Statistics • November 1999 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly prises or federally related mortgage pools) and the nonfederal sectors (state and local statistical release. Historical data starting in 1959 are available from the Money and Reserves governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and System, Washington, DC 20551. corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, 2. Composition of the money stock measures and debt is as follows: which are derived from the Federal Reserve Board's flow of funds accounts, are break- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of adjusted (that is, discontinuities in the data have been smoothed into the series) and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all month-averaged (that is, the data have been derived by averaging adjacent month-end levels). commercial banks other than those owed to depository institutions, the U.S. government, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository foreign banks and official institutions, less cash items in the process of collection and Federal institutions. Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, Travelers checks issued by depository institutions are included in demand deposits. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 5. Demand deposits at commercial banks and foreign-related institutions other than those adjusted Ml is computed by summing currency, travelers checks, demand deposits, and owed to depository institutions, the U.S. government, and foreign banks and official institu- OCDs, each seasonally adjusted separately. tions, less cash items in the process of collection and Federal Reserve float. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 6. Consists of NOW and ATS account balances at all depository institutions, credit union deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) share draft account balances, and demand deposits at thrift institutions. balances in retail money market mutual funds. Excludes individual retirement accounts 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally money fund balances. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities and retail money fund balances, each seasonally adjusted separately, and adding this result to (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and seasonally adjusted Ml. term) of U.S. addressees. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 9. Small time deposits—including retail RPs—are those issued in amounts of less than issued by all depository institutions, (2) balances in institutional money funds, (3) RP $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are liabilities (overnight and term) issued by all depository institutions, and (4) Eurodollars subtracted from small time deposits. (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those at all banking offices in the United Kingdom and Canada. Excludes amounts held by booked at international banking facilities. depository institutions, the U.S. government, money market funds, and foreign banks and 11. Large time deposits at commercial banks less those held by money market funds, official institutions. Seasonally adjusted M3 is calculated by summing large time deposits, depository institutions, the U.S. government, and foreign banks and official institutions. institutional money fund balances, RP liabilities, and Eurodollars, each seasonally adjusted 12. Includes both overnight and term. separately, and adding this result to seasonally adjusted M2. Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial sectors—the federal sector (U.S. government, not including government-sponsored enter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banking Institutions—Assets and Liabilities A15 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1 A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 1998 1999 1999 Aug. Feb. Mar. Apr. May June" July" Aug. Aug. 4 Aug. 11 Aug. 18 Aug. 25 Seasonally adjusted Assets 1 Bank credit 4,344.5r 4,520.4r 4,489.8" 4,500.0" 4,509.7" 4,546.5 4,544.3 4,580.3 4,566.3 4,576.5 4,569.4 4,588.8 7 Securities in bank credit 1,159.4 1,205.3 1,186.9 1,188.3 1,188.0 1,205.8 1,223.0 1,239.0 1,240.4 1,239.5 1,235.5 1,241.7 U.S. government securities 776.0 791.6 799.1 800.1 798.4 811.9 813.8 819.4 818.2 817.2 816.4 825.8 4 Other securities 383.4 413.7 387.8 388.3 389.6 393.9 409.2 419.6 422.2 422.3 419.2 415.9 Loans and leases in bank credit2 ... 3,185.0" 3,315.1r 3,302.9" 3,311.6" 3,321.7" 3,340.7 3,321.2 3,341.3 3,325.8 3,337.0 3,333.9 3,347.1 6 Commercial and industrial 914.2r 952.2r 956.2" 960.7" 956.3" 962.3 963.7 971.8 966.7 967.7 967.2 976.7 7 Real estate 1,291.9" l,347.1r 1,348.3" 1350.8" 1,360.3" 1,365.9 1,367.3 1,379.5 1,375.0 1,379.0 1381.1 1,378.8 8 Revolving home equity 103.3 101.8 102.0 103.0 104.3 103.7 97.9 98.6 98.2 98.4 98.6 98.7 9 Other l,188.6r l,245.2r 1,246.3" 1,247.7" 1,256.0" 1,262.2 1,269.4 1,280.9 1,276.8 1,280.6 1,282.5 1,280.1 in Consumer 488.5 499.4 498.7 499.5 495.9 491.6 483.6 483.3 480.6 482.4 483.9 484.8 li Security3 136.5r 138.9" 118.9" 122.0" 126.6" 130.6 122.1 122.3 122.3 125.7 119.2 122.8 n Other loans and leases 353.? 377.6r 380.8" 378.6" 382.6" 390.3 384.5 384.3 381.3 382.3 382.6 383.9 n Interbank loans 206.1 227.7 221.2 217.4 227.5 224.5 224.0 215.0 213.8 212.4 212.9 225.2 14 Cash assets4 249.5 254.0 256.2 257.8 259.9 261.0 259.5 254.3 243.7 266.6 247.8 262.4 15 Other assets5 320.2 356.9 354.5 344.8 347.2 348.6 349.7 347.1 336.2 350.2 346.2 352.9 16 Total assets6 5,063.1r 5^oo.r 5,263.1" 5,261.4" 5,285.5" 5322.0 53193 5338.1 5,301.6 5347.1 5,317.8 5,370.7 Liabilities 17 Deposits 3,242.4 3,376.2 3,367.9 3,376.5 3,374.9 3,377.2 3,392.3 3,387.0 3,394.4 3,391.9 3,370.8 3,391.8 18 Transaction 669.2 655.8 660.9 656.6 649.6 655.7 649.9 640.2 632.0 644.4 635.5 660.5 19 Nontransaction 2,573.2 2,720.4 2,706.9 2,719.9 2,725.2 2,721.5 2,742.4 2,746.8 2,762.4 2,747.5 2,735.3 2,731.3 7,0 Large time 698.1 729.9 721.2 725.7 723.6 718.8 721.8 718.2 720.9 718.5 717.8 715.0 71 Other 1,875.0 1,990.5 1,985.7 1,994.2 2,001.7 2,002.7 2,020.6 2,028.6 2,041.6 2,029.0 2,017.6 2,016.3 77 Borrowings 915.8 990.8 987.8 983.7 997.8 1,020.5 1,019.3 1,023.9 1,006.7 1,030.3 1,013.5 1,034.5 73 From banks in the U.S 296.0 316.4 319.3 312.1 324.6 338.8 338.9 338.1 331.7 337.3 331.8 343.3 74 From others 619.8 674.3 668.5 671.6 673.2 681.7 680.4 685.8 675.1 692.9 681.7 691.2 75 Net due to related foreign offices 207.6 214.0 210.6 210.4 204.1 215.3 212.3 222.2 220.7 221.4 240.0 221.5 26 Other liabilities 295.2 295.8 271.7 273.2 270.4 274.9 274.4 280.9 275.3 281.5 275.5 278.6 27 Total liabilities 4,661.0 4,876.7 4,838.0 4,843.7 4,847.2 4,887.8 4,898.4 4,914.0 4,897.1 4,925.0 4,899.8 4,9263 28 Residual (assets less liabilities)7 402. lr 424.0" 425.2" 417.7" 438.3" 434.2 421.0 424.1 404.5 422.1 418.0 444.3 Not seasonally adjusted Assets 79 Bank credit 4,326.6r 4,518.1r 4,488.4" 4,508.3" 4,512.5" 4,540.8 4,528.5 4,559.5 4,553.2 4,554.4 4,551.1 4,557.0 30 Securities in bank credit 1,149.3 1,210.8 1,193.5 1,197.0 1,193.5 1,202.5 1,211.9 1,226.2 1,229.4 1,226.2 1,222.7 1,226.3 31 U.S. government securities 766.3 795.8 805.5 810.0 806.5 811.4 806.0 807.6 808.8 805.6 804.6 811.7 37 Other securities 383.0 415.0 388.0 387.0 386.9 391.1 405.9 418.6 420.6 420.6 418.1 414.6 33 Loans and leases in bank credit2 ... 3,177.3r 3,307.3" 3,294.8" 3,311.3" 3,319.0" 3,338.2 3,316.6 3,333.3 3,323.8 3,328.3 3,328.4 3,330.7 34 Commercial and industrial 906.4 953.6" 959.8" 967.3" 960.7" 962.6 961.3 963.1 962.6 959.4 959.7 964.6 35 Real estate l,294.3r 1,341.3" 1,341.7" 1,347.4" 1,359.7" 1,366.5 1,368.3 1,382.1 1,376.5 1383.4 1,383.5 1,380.2 36 Revolving home equity 103.4 101.4 101.1 102.4 103.9 103.3 97.7 98.8 98.1 98.4 98.8 98.9 37 Other 1,190.9" 1,239.9" 1,240.6" 1,245.1" 1,255.8" 1,263.2 1,270.6 1,283.3 1,278.4 1,284.9 1,284.7 1,281.3 38 Consumer 489.4 499.2 493.9 496.0 493.4 488.9 481.2 484.5 479.5 481.9 485.0 487.2 39 Security3 132.3r 138.5" 122.4" 123.9" 126.4" 130.0 120.1 118.6 121.4 122.1 116.2 116.4 40 Other loans and leases 354.8r 374.6" 377.0" 376.5" 378.7" 390.3 385.7 385.1 383.7 381.4 384.0 382.4 41 Interbank loans 199.0 227.4 224.4 222.4 223.3 221.8 217.7 207.2 210.9 202.9 208.6 208.6 47 Cash assets4 238.7 255.1 248.8 255.5 257.6 256.6 251.6 243.8 240.8 246.9 239.6 239.2 43 Other assets5 323.0 353.6 349.8 347.8 348.7 354.5 352.5 349.9 343.1 352.6 348.8 349.8 44 Total assets6 5,030.0" 5,296.0" 5,252.9" 5,275.6" 5,2833" 5314.8 5,292.0 5,301.5 5,2893 5,298.0 5,289.2 5,295.8 Liabilities 45 Deposits 3,226.5 3,353.2 3,362.6 3,387.2 3,365.5 3,375.2 3,376.0 3,373.0 3,394.9 3,372.3 3,361.7 3,347.7 46 Transaction 651.6 651.0 654.5 664.2 640.6 650.8 639.2 623.7 630.8 619.6 623.8 618.4 47 Nontransaction 2,574.8 2,702.3 2,708.1 2,723.0 2,724.9 2,724.4 2,736.8 2,749.2 2,764.1 2,752.6 2,737.9 2,729.3 48 Large time 695.7 730.6 723.2 722.6 724.8 716.1 715.1 715.6 716.3 713.7 713.9 714.8 49 Other 1,879.1 1,971.7 1,984.9 2,000.3 2,000.1 2,008.3 2,021.7 2,033.7 2,047.8 2,038.9 2,024.0 2,014.5 50 Borrowings 897.1 993.4 981.2 983.5 1,006.0 1,024.1 1,010.0 1,000.4 988.9 999.3 995.1 1,005.9 51 From banks in the U.S 289.8 316.8 318.9 312.8 325.5 338.6 334.3 330.9 325.8 327.4 326.9 334.6 57 From others 607.3 676.6 662.3 670.7 680.5 685.4 675.7 669.5 663.1 671.9 668.2 671.2 53 Net due to related foreign offices .... 203.6 223.7 208.8 203.3 210.3 209.5 204.6 217.2 204.5 213.4 225.7 231.4 54 Other liabilities 295.2 298.2 272.4 272.8 270.1 274.2 273.5 280.8 274.7 281.8 275.4 278.4 55 Total liabilities 4,6223 4,868.5 4,824.9 4,846.8 4,851.9 4,882.9 4,864.1 4,871.4 4,863.0 4,866.8 4357.9 4,863.4 56 Residual (assets less liabilities)7 407.7r 427.5" 428.0" 428.8" 431.4" 431.9 427.9 430.2 426.3 431.2 431.2 432.4 MEMO 57 Revaluation gains on off-balance-sheet items8 97.4 107.4 85.8 86.0 85.4 85.4 91.1 96.0 99.6 97.8 95.2 92.5 58 Revaluation losses on off-balancesheet items8 98.5 105.9 85.1 87.3 86.7 86.9 92.1 99.4 103.1 101.5 97.2 94.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A16 Domestic Financial Statistics • October 1999 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 1998 1999 1999 Aug. Feb. Mar. Apr. May June Julyr Aug. Aug. 4 Aug. 11 Aug. 18 Aug. 25 Seasonally adjusted Assets 1 Bank credit 3,750.3r 3,954.5r 3,940.0r 3,951.lr 3,970.8r 4,015.2r 4,025.2 4,057.8 4,039.9 4,053.7 4,048.2 4,068.7 2 Securities in bank credit 942.2 1,002.5 990.2 988.9 992.8 1,010.7 1,033.5 1,049.1 1,046.0 1,048.9 1,046.3 1,054.3 3 U.S. government securities 680.2 708.5 715.1 712.3 712.7 724.5 728.1 735.4 730.9 732.8 734.0 743.4 4 Other securities 262.0 294.0 275.0 276.6 280.1 286.2 305.4 313.7 315.1 316.1 312.2 310.9 5 Loans and leases in bank credit2 2,808. lr 2,952.0r 2,949.9r 2,962.2r 2,978.0r 3,004.5r 2,991.6 3,008.7 2,993.8 3,004.8 3,001.9 3,014.4 6 Commercial and industrial 699.9 740.4r 746.3r 752.4r 755.5r 766.8r 772.2 777.3 772.7 773.6 773.8 781.8 7 Real estate l,268.0r 1,326.6r l,328.4r l,331.0r l,340.5r l,346.7r 1,348.9 1,361.9 1,357.0 1,361.3 1,363.5 1,361.3 8 Revolving home equity 103.3 101.8 102.0 103.0 104.3 103.7 97.9 98.6 98.2 98.4 98.6 98.7 9 Other l,164.7r l,224.7r l,226.4r l,22S.(f l,236.2r l,243.0r 1,251.0 1,263.4 1,258.8 1,262.9 1,264.9 1,262.6 10 Consumer 488.5 499.4 498.7 499.5 495.9 491.6 483.6 483.3 480.6 482.4 483.9 484.8 11 Security3 72.5 79.3 68.1 70.1 73.4 79.0 69.6 67.5 68.3 70.9 63.6 68.4 12 Other loans and leases 279.2r 306.3r 308.4r 309.lr 312.7r 320.4r 317.4 318.7 315.3 316.5 317.1 318.2 13 Interbank loans 186.1 196.2 195.6 192.0 200.9 200.0 196.6 189.4 185.5 187.5 185.9 199.3 14 Cash assets4 215.4 220.3 222.1 223.2 223.9 227.5 224.4 216.3 209.6 228.5 209.1 223.6 15 Other assets5 284.3 319.2 317.0 307.3 311.3 315.1 317.6 318.1 308.0 321.8 317.1 322.7 16 Total assets6 4,379.1r 4,632.2r 4,616.4r 4,615.3r 4,648.5r 4,699.4r 4,705.8 4,723.1 4,684.8 4,733.1 4,701.9 4,756.0 Liabilities 17 Deposits 2,935.4 3,056.5 3,057.7 3,064.6 3,064.4 3,071.5 3,082.4 3,078.3 3,085.8 3,079.2 3,062.2 3,087.0 18 Transaction 656.9 644.0 650.4 646.5 639.1 644.8 639.0 629.2 621.0 633.1 624.3 649.7 19 Nontransaction 2,278.6 2,412.5 2,407.3 2,418.1 2,425.3 2,426.6 2,443.3 2,449.1 2,464.8 2,446.1 2,437.9 2,437.3 20 Large time 405.2 423.3 422.7 425.5 425.6 426.2 425.6 424.4 426.7 420.5 423.8 425.3 21 Other 1,873.4 1,989.3 1,984.6 1,992.6 1,999.7 2,000.5 2,017.7 2,024.6 2,038.1 2,025.5 2,014.0 2,012.1 22 Borrowings 724.1 811.0 814.3 811.6 825.1 839.6 847.4 852.0 832.5 860.8 844.9 865.7 23 From banks in the U.S 274.7 298.5 295.2 290.8 302.9 311.9 314.3 314.5 307.5 317.9 310.8 320.1 24 From others 449.4 512.5 519.1 520.8 522.3 527.7 533.0 537.5 525.1 542.9 534.1 545.5 25 Net due to related foreign offices .... 98.2 117.3 117.7 115.4 118.7 145.6 145.0 150.3 143.5 151.4 161.2 149.0 26 Other liabilities 221.5 225.9 204.4 206.6 211.1 214.1 210.9 219.3 213.1 221.2 213.2 216.1 27 Total liabilities 3,979.3 4,210.8 4,194.0 4,198.2 4,219.4 4,270.7 4,285.7 4,299.8 4,274.9 4,312.5 4,281.5 4,317.8 28 Residual (assets less liabilities)7 399.8r 421.5r 422.4r 417.lr 429. lr 428.7r 420.2 423.3 409.8 420.6 420.3 438.2 Not seasonally adjusted Assets 29 Bank credit 3,735.8r 3,948.5r 3,936.9r 3,962.2r 3,978.8r 4,012.5r 4,012.6 4,040.7 4,030.2 4,036.5 4,032.0 4,042.0 30 Securities in bank credit 932.8 1,006.3 995.7 999.1 999.9 1,008.3 1,024.0 1,037.5 1,036.9 1,037.3 1,034.2 1,040.3 31 U.S. government securities 671.2 712.4 720.7 722.6 720.1 723.6 720.8 724.6 723.1 722.1 722.7 730.4 32 Other securities 261.6 294.0 275.0 276.5 279.8 284.7 303.2 312.8 313.9 315.2 311.4 309.9 33 Loans and leases in bank credit2 2,803,0r 2,942.2r 2,941.2r 2,963. lr 2,978.9r 3,004.2r 2,988.6 3,003.3 2,993.2 2,999.2 2,997.8 3,001.6 34 Commercial and industrial 693.8 740.0r 749.6r 760.6r 762.6r 768.7r 770.6 770.3 769.8 767.1 767.2 771.9 35 Real estate l,270.6r l,320.5r l,321.7r l,327.9r l,340.1r l,347.5r 1,350.1 1,364.6 1,358.8 1,365.9 1,366.0 1,362.8 36 Revolving home equity 103.4 101.4 101.1 102.4 103.9 103.3 97.7 98.8 98.1 98.4 98.8 98.9 37 Other l,167.2r l,219.0r l,220.6r l,225.5r l,236.3r l,244.2r 1,252.4 1,265.9 1,260.7 1,267.4 1,267.2 1,263.9 38 Consumer 489.4 499.2 493.9 496.0 493.4 488.9 481.2 484.5 479.5 481.9 485.0 487.2 39 Security3 68.4 79.4 70.9 72.1 73.5 78.2 67.9 63.7 67.1 67.7 60.3 62.2 40 Other loans and leases 280.8r 303.lr 305.2' 306.5r 309.lr 320.9r 318.7 320.2 318.0 316.7 319.3 317.6 41 Interbank loans 179.0 195.9 198.7 197.0 196.7 197.3 190.3 181.6 182.5 178.0 181.6 182.6 42 Cash assets4 204.8 222.1 215.7 222.0 222.0 222.2 216.6 206.1 206.7 209.3 201.0 200.9 43 Other assets5 286.5 314.8 311.8 312.0 313.5 322.1 321.0 320.3 314.5 323.9 319.1 318.9 44 Total assets6 4,349.0r 4,623.4r 4,604.9r 4,635.2r 4,652.5r 4,695.6r 4,682.5 4,690.0 4,675.5 4,689.0 4,675.1 4,685.9 Liabilities 45 Deposits 2,922.1 3,034.8 3,049.1 3,075.9 3,052.7 3,068.8 3,068.5 3,066.8 3,088.7 3,063.2 3,056.5 3,044.1 46 Transaction 639.4 639.3 643.8 654.3 630.3 640.1 628.4 612.8 620.0 608.6 612.7 607.8 47 Nontransaction 2,282.7 2,395.4 2,405.3 2,421.6 2,422.4 2,428.6 2,440.1 2,454.0 2,468.7 2,454.6 2,443.8 2,436.3 48 Large time 403.5 425.7 422.5 423.4 424.5 422.6 420.7 422.6 423.1 417.9 422.1 424.1 49 Other 1,879.2 1,969.7 1,982.8 1,998.2 1,997.9 2,006.0 2,019.4 2,031.4 2,045.5 2,036.6 2,021.7 2,012.2 50 Borrowings 705.4 813.7 807.7 811.4 833.3 843.1 838.0 828.5 814.7 829.8 826.5 837.1 51 From banks in the U.S 268.6 298.9 294.8 291.4 303.8 311.7 309.7 307.4 301.5 308.0 305.9 311.5 52 From others 436.8 514.8 512.9 519.9 529.5 531.4 528.3 521.2 513.1 521.8 520.6 525.6 53 Net due to related foreign offices .... 96.7 123.4 117.6 114.0 126.7 141.2 139.8 147.3 134.5 145.3 149.7 158.8 54 Other liabilities 221.3 226.8 205.0 207.3 211.3 213.9 211.0 219.0 213.0 221.3 212.9 215.7 55 Total liabilities 3,945.5 4,198.6 4,179.4 4,208.6 4,224.1 4,267.0 4,257.3 4,261.7 4,250.9 4,259.5 4,245.6 4,255.6 56 Residual (assets less liabilities)7 403.5r 424.8r 425.5r 426.6r 428.5r 428.6r 425.2 428.3 424.7 429.5 429.5 430.2 MEMO 57 Revaluation gains on off-balance-sheet items8 53.3 64.9 46.8 48.3 50.6 51.0 53.8 57.9 60.7 60.3 56.5 54.3 58 Revaluation losses on off-balancesheet items8 56.3 65.4 46.7 49.3 52.5 53.4 55.7 63.1 65.7 65.4 60.8 57.7 59 Mortgage-backed securities® 301.2 341.6 336.9 335.7 335.5 332.1 330.7 334.6 333.3 332.4 331.9 336.9 Footnotes appear on p. 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 C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1998 1999r 1999 Aug. Feb. Mar. Apr. May June July Aug. Aug. 4 Aug. 11 Aug. 18 Aug. 25 Seasonally adjusted Assets I Bank credit 2,331.9 2,439.3 2,412.1 2,416.4 2,424.8 2,452.8 2,448.4 2,466.1 2,456.7 2,465.8 2,456.8 2,473.9 2 Securities in bank credit 536.2 562.8 546.4 543.5 543.3 553.7 572.6 586.1 583.9 586.4 583.3 591.1 3 U.S. government securities 369.7 378.6 382.2 378.4 376.5 382.7 382.9 389.9 385.2 387.3 388.7 397.8 4 Trading account 22.1 17.9 22.5 25.9 22.3 25.1 22.7 22.8 21.0 21.2 23.0 27.5 5 Investment account 347.6 360.7 359.7 352.5 354.1 357.6 360.1 367.1 364.2 366.1 365.6 370.2 6 Other securities 166.5 184.2 164.2 165.1 166.8 170.9 189.7 196.2 198.7 199.1 194.7 193.4 7 Trading account 79.2 87.5 66.7 66.1 68.3 67.5 73.0 76.9 80.8 80.8 75.9 73.2 8 Investment account 87.3 96.7 97.5 99.0 98.6 103.4 116.7 119.3 117.9 118.3 118.7 120.2 9 State and local government . 22.9 24.7 24.9 24.6 24.8 25.3 25.4 25.7 25.7 25.6 25.9 25.8 10 Other 64.4 72.0 72.7 74.4 73.8 78.2 91.3 93.5 92.2 92.7 92.8 94.4 11 Loans and leases in bank credit2 . .. 1,795.7 1,876.5 1,865.7 1,873.0 1,881.5 1,899.1 1,875.8 1,880.0 1,872.8 1,879.4 1,873.4 1,882.8 12 Commercial and industrial 515.6 543.2 548.1 552.6 552.7 561.2 563.8 567.1 563.3 564.0 564.0 570.9 13 Bankers acceptances 1.3 1.2 1.1 1.1 1.0 1.0 1.0 1.1 1.0 1.0 1.1 1.1 14 Other 514.4 542.1 547.0 551.5 551.7 560.2 562.8 566.0 562.4 563.0 562.9 569.8 15 Real estate 710.3 722.6 718.5 718.4 721.9 721.3 716.2 721.0 719.4 722.3 722.7 719.1 16 Revolving home equity 74.8 73.4 73.4 74.2 75.0 74.1 68.1 68.8 68.3 68.5 68.8 69.0 17 Other 635.5 649.2 645.1 644.2 646.9 647.2 648.0 652.3 651.1 653.9 653.9 650.1 18 Consumer 294.1 301.6 299.1 297.6 294.8 290.2 282.8 279.8 280.7 279.7 279.8 279.7 19 Security3 66.7 73.6 62.3 64.6 68.3 73.8 64.3 62.2 62.9 65.7 58.4 63.2 20 Federal funds sold to and repurchase agreements with broker-dealers 49.0 57.8 46.3 47.9 51.4 55.6 46.9 45.3 45.5 4477..66 4411..44 4466..88 21 Other 17.7 15.8 16.0 16.6 16.8 18.2 17.4 16.9 17.3 18.2 17.0 16.4 22 State and local government 11.2 11.3 11.3 11.4 11.4 11.4 11.7 11.9 11.8 11.9 11.8 12.0 23 Agricultural 8.9 9.0 8.9 8.9 8.6 8.6 8.5 8.8 8.7 8.7 8.7 8.8 24 Federal funds sold to and repurchase agreements with others 10.2 12.3 12.2 11.6 14.2 38.1 32.3 30.0 30.5 29.8 29.4 3300..11 25 All other loans 80.7 89.8 89.5 90.1 90.3 74.5 74.6 76.1 72.9 74.7 75.7 76.1 26 Lease-financing receivables 97.8 113.2 115.7 117.9 119.3 120.0 121.7 123.2 122.5 122.5 123.0 123.0 27 Interbank loans 119.5 131.6 133.8 131.6 143.2 144.6 139.7 134.7 129.8 134.9 131.7 143.4 28 Federal funds sold to and repurchase agreements with commercial banks 66.7 81.8 84.9 81.1 88.0 87.0 8899..66 86.0 8822..00 86.6 80.6 9955..44 29 Other 52.8 49.7 48.9 50.6 55.2 57.6 50.1 48.7 47.8 48.4 51.1 48.0 30 Cash assets4 149.2 151.1 152.6 154.9 152.6 155.8 151.5 143.6 138.3 153.1 139.3 148.3 31 Other assets5 223.3 243.7 240.3 230.2 232.7 235.9 234.4 232.4 223.1 235.2 232.2 236.2 32 Total assets6 2,7862 2,927.1 2,900.1 2,894.7 2,914.8 2,950.6 2,935.8 2,938.6 2,909.6 2,950.8 2,921.7 2^>63.5 Liabilities 33 Deposits 1,661.6 1,692.4 1,690.7 1,697.8 1,692.5 1,692.7 1,691.7 1,679.9 1,690.5 1,683.2 1,669.1 1,682.3 34 Transaction 375.3 357.9 361.5 363.9 355.0 356.7 351.4 340.3 336.4 346.5 337.9 349.5 35 Nontransaction 1,286.3 1,334.5 1,329.2 1,333.9 1,337.5 1,336.0 1,340.2 1,339.6 1,354.2 1,336.7 1,331.2 1,332.8 36 Large time 222.5 230.5 227.8 228.6 225.6 227.5 228.5 224.6 227.8 221.5 223.9 224.8 37 Other 1,063.8 1,103.9 1,101.3 1,105.3 1,111.9 1,108.4 1,111.7 1,115.0 1,126.3 1,115.2 1,107.4 1,108.0 38 Borrowings 562.5 625.8 623.0 622.1 629.7 639.5 637.0 640.0 624.0 650.8 633.2 651.3 39 From banks in the U.S 198.6 213.8 208.6 205.8 214.3 219.3 216.0 217.6 212.0 220.3 214.2 221.9 40 From others 363.9 412.0 414.4 416.2 415.4 420.2 420.9 422.4 412.0 430.5 419.0 429.4 41 Net due to related foreign offices 94.5 114.1 113.1 110.5 113.6 141.5 140.8 146.8 139.7 147.2 158.0 145.8 42 Other liabilities 193.2 195.7 173.9 175.2 178.9 180.9 178.2 183.4 178.3 185.4 177.3 179.7 43 Total liabilities 2,511.7 2,628.0 2,600.7 2,605.5 2,614.8 2,654.6 2,647.6 2,650.1 2,632.5 2,666.7 2,637.6 2,659.2 44 Residual (assets less liabilities)7 274.5 299.1 299.4 289.2 300.0 296.0 288.1 288.5 277.0 284.1 284.1 304.3 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A18 Domestic Financial Statistics • November 1999 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks—Continued Monthly averages Wednesday figures AAAccccccooouuunnnttt 1998 1999 1999 Aug. Feb/ Mar.r Apr.r Mayr Juner Julyr Aug. Aug. 4 Aug. 11 Aug. 18 Aug. 25 Not seasonally adjusted Assets 45 Bank credit 2,315.2 2,444.0 2,414.7 2,422.5 2,422.6 2,443.0 2,434.5 2,446.9 2,446.3 2,446.0 2,438.8 2,444.2 46 Securities in bank credit 528.2 568.8 550.4 548.8 545.1 549.5 564.8 576.1 576.9 575.7 573.4 578.2 47 U.S. government securities 362.2 384.0 386.2 384.4 379.3 379.9 377.1 381.0 379.5 377.8 379.8 386.1 48 Trading account 21.2 18.6 23.4 25.2 20.8 23.5 20.9 21.7 20.5 19.8 23.0 25.2 49 Investment account 341.1 365.5 362.8 359.2 358.6 356.4 356.1 359.2 359.0 358.1 356.8 360.9 50 Mortgage-backed securities .. 228.8 251.2 244.6 241.8 238.7 234.4 233.1 237.2 236.2 235.3 234.7 239.2 51 Other 112.3 114.3 118.2 117.4 119.8 122.1 123.0 122.0 122.9 122.7 122.1 121.7 52 One year or less 29.7 26.2 24.4 24.8 24.2 25.2 25.2 24.8 24.6 25.1 25.0 24.5 53 One to five years 50.1 47.9 53.3 53.9 55.6 57.4 58.5 58.2 58.3 59.0 58.0 57.9 54 More than five years . .. 32.6 40.2 40.5 38.7 40.0 39.6 39.3 39.1 40.0 38.6 39.1 39.2 55 Other securities 165.9 184.8 164.2 164.4 165.8 169.5 187.7 195.1 197.4 197.8 193.6 192.2 56 Trading account 79.2 87.5 66.7 66.1 68.3 67.5 73.0 76.9 80.8 80.8 75.9 73.2 57 Investment account 86.7 97.3 97.5 98.2 97.5 102.0 114.7 118.2 116.6 117.1 117.7 119.0 58 State and local government .. 22.7 24.8 24.9 24.7 24.9 25.1 24.9 25.4 25.2 25.2 25.5 25.5 59 Other 64.0 72.5 72.6 73.5 72.6 76.9 89.8 92.8 91.4 91.9 92.2 93.5 60 Loans and leases in bank credit2 .. 1,787.0 1,875.2 1,864.4 1,873.7 1,877.5 1,893.6 1,869.8 1,870.8 1,869.4 1,870.3 1,865.5 1,865.9 61 Commercial and industrial 510.7 543.2 550.8 558.6 557.2 561.2 562.3 561.3 561.4 558.6 558.5 562.4 62 Bankers acceptances 1.3 1.2 1.1 1.1 1.0 1.0 1.0 1.1 1.0 1.0 1.1 1.1 63 Other 509.4 542.0 549.6 557.6 556.3 560.2 561.4 560.2 560.5 557.6 557.5 561.3 64 Real estate 710.9 721.2 715.5 715.5 719.2 719.3 715.3 721.6 719.7 724.7 723.2 718.3 65 Revolving home equity 75.1 73.1 72.7 73.7 74.7 73.9 68.2 69.1 68.5 68.7 69.1 69.3 66 Other 397.2 399.3 392.4 390.4 392.2 392.9 394.0 398.1 397.8 401.9 400.1 393.6 67 Commercial 238.5 248.9 250.4 251.4 252.2 252.5 253.1 254.4 253.4 254.1 254.0 255.3 68 Consumer 294.8 302.0 296.5 295.2 292.6 288.3 281.0 280.4 279.5 279.0 280.4 281.2 69 Security3 62.6 73.6 65.1 66.5 68.3 73.0 62.6 58.4 61.7 62.5 55.1 57.0 70 Federal funds sold to and repurchase agreements with broker-dealers .... 45.3 58.3 48.9 49.8 51.2 54.1 45.3 41.8 44.6 45.2 38.4 40.6 71 Other 17.4 15.3 16.2 16.7 17.2 18.9 17.3 16.6 17.1 17.2 16.6 16.4 72 State and local government .... 11.3 11.3 11.2 11.3 11.3 11.3 11.6 11.9 11.8 11.9 11.9 12.1 73 Agricultural 9.1 8.7 8.6 8.6 8.6 8.7 8.8 9.0 8.9 9.0 9.0 9.0 74 Federal funds sold to and repurchase agreements with others 10.2 12.3 12.2 11.6 14.2 38.1 32.3 30.0 30.5 29.8 29.4 30.1 75 All other loans 80.1 88.4 87.9 88.2 86.9 73.4 74.5 75.5 73.8 72.8 75.5 73.6 76 Lease-financing receivables .... 97.3 114.5 116.6 118.1 119.2 120.2 121.3 122.6 122.0 122.1 122.5 122.3 77 Interbank loans 115.9 131.4 133.9 135.7 143.3 145.0 137.5 129.4 127.4 127.0 129.7 132.7 78 Federal funds sold to and repurchase agreements with commercial banks 63.3 82.4 84.6 83.7 87.1 86.2 86.0 81.0 78.9 79.1 79.1 85.1 79 Other 52.6 49.0 49.3 52.0 56.3 58.8 51.5 48.4 48.5 47.8 50.7 47.6 80 Cash assets4 141.7 151.9 147.7 153.8 151.1 151.6 145.5 136.6 136.7 139.3 134.0 132.6 81 Other assets5 225.0 240.6 236.5 234.5 235.0 241.2 236.6 234.0 226.8 236.2 234.1 234.3 82 Total assets6 2,759.7 2,929.4 2^942 2^»08J 2^13.5 2,942.2 2,915.9 2,908.4 2^98.6 2,909.9 2^98.2 2^05.4 Liabilities 83 Deposits 1,650.7 1,688.2 1,689.1 1,703.9 1,678.1 1,686.6 1,680.4 1,669.8 1,689.3 1,668.6 1,664.3 1,651.5 84 Transaction 364.7 355.0 356.3 368.0 348.5 353.1 344.7 330.8 336.2 330.4 332.8 323.6 85 Nontransaction 1,286.0 1,333.1 1,332.9 1,335.9 1,329.6 1,333.5 1,335.6 1,339.0 1,353.2 1,338.1 1,331.5 1,327.8 86 Large time 220.9 233.0 227.6 226.5 224.5 224.0 223.7 222.8 224.2 218.9 222.1 223.6 87 Other 1,065.1 1,100.1 1,105.3 1,109.4 1,105.2 1,109.5 1,112.0 1,116.2 1,128.9 1,119.2 1,109.4 1,104.2 88 Borrowings 543.9 631.1 622.0 624.5 637.5 641.9 627.9 616.5 607.8 620.4 614.1 622.3 89 From banks in the U.S 193.0 215.4 210.6 208.2 215.4 219.0 212.3 211.2 207.7 211.5 209.6 213.8 90 From nonbanks in the U.S 350.8 415.7 411.4 416.3 422.1 422.9 415.6 405.3 400.1 409.0 404.5 408.5 91 Net due to related foreign offices ... 92.9 120.2 113.1 109.0 121.7 137.1 135.5 143.9 130.7 141.1 146.4 155.7 92 Other liabilities 193.2 195.7 173.9 175.2 178.9 180.9 178.2 183.4 178.3 185.4 177.3 179.7 93 Total liabilities 2,480.6 2,635.1 2^98.1 2,612.6 2,6163 2,646.5 2,622.0 2,613.6 2,606.1 2,615.6 2,602.1 2,609.1 94 Residual (assets less liabilities)7 .... 279.0 294.2 296.1 295.7 297.2 295.7 293.9 294.8 292.4 294.4 296.1 296.3 MEMO 95 Revaluation gains on off-balancesheet items8 53.3 64.9 46.8 48.3 50.6 51.0 53.8 57.9 60.7 60.3 56.5 54.3 96 Revaluation losses on off-balancesheet items8 56.3 65.4 46.6 49.3 52.5 53.4 55.7 63.1 65.7 65.4 60.8 57.7 97 Mortgage-backed securities9 252.4 279.9 272.9 270.2 266.2 261.6 260.0 264.3 262.8 262.1 261.6 266.7 98 Pass-through securities 163.8 190.2 183.1 180.2 177.4 174.1 173.7 177.4 176.0 175.4 175.4 180.0 99 CMOs, REMICs, and other mortgage-backed securities .. 88.6 89.7 89.8 90.0 88.7 87.5 86.3 86.9 86.8 86.7 86.2 86.7 100 Net unrealized gains (losses) on available-for-sale securities10 ... 3.1 2.3 .6 .9 .6 .0 -3.3 -4.2 -4.3 -4.3 -3.9 -3.8 101 Offshore credit to U.S. residents11 .. . 35.6 38.9 39.0 37.9 37.7 37.0 36.3 32.2 35.1 34.4 33.3 29.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1998 1999r 1999 Aug. Feb. Mar. Apr. May June July Aug. Aug. 4 Aug. 11 Aug. 18 Aug. 25 Seasonally adjusted Assets 1 Bank credit 1,418.3 1,515.3 1,528.0 1,534.6 1,546.0 1,562.4 1,576.8 1,591.7 1,583.2 1,587.9 1,591.4 1,594.8 7 Securities in bank credit 406.0 439.7 443.8 445.4 449.5 457.0 460.9 463.0 462.1 462.5 462.9 463.2 3 U.S. government securities 310.5 329.9 333.0 334.0 336.2 341.8 345.2 345.5 345.7 345.5 345.3 345.7 4 Other securities 95.5 109.8 110.8 111.5 113.2 115.2 115.7 117.5 116.5 117.0 117.6 117.5 Loans and leases in bank credit2 1,012.4 1,075.5 1,084.2 1,089.2 1,096.6 1,105.4 1,115.8 1,128.7 1,121.1 1,125.4 1,128.5 1,131.6 6 Commercial and industrial 184.2 197.2 198.2 199.8 202.8 205.6 208.4 210.2 209.3 209.6 209.8 211.0 7 Real estate 557.7 604.0 609.8 612.6 618.6 625.4 632.7 640.9 637.6 639.0 640.8 642.1 8 Revolving home equity 28.5 28.4 28.6 28.8 29.2 29.5 29.7 29.8 29.9 29.9 29.8 29.7 Other 529.2 575.6 581.3 583.8 589.4 595.8 603.0 611.1 607.7 609.1 611.0 612.5 in Consumer 194.4 197.8 199.6 201.9 201.1 201.3 200.8 203.5 199.9 202.7 204.1 205.1 li Security3 5.8 5.7 5.8 5.6 5.2 5.2 5.3 5.3 5.4 5.2 5.2 5.2 17. Other loans and leases 70.3 70.8 70.8 69.4 68.9 67.9 68.6 68.8 68.8 68.9 68.6 68.2 n Interbank loans 66.6 64.6 61.8 60.4 57.7 55.4 56.9 54.7 55.7 52.6 54.2 55.9 14 Cash assets4 66.2 69.2 69.5 68.3 71.3 71.8 72.9 72.6 71.3 75.4 69.8 75.3 15 Other assets5 60.9 75.5 76.7 77.2 78.6 79.3 83.2 85.6 84.9 86.6 84.9 86.6 16 Total assets6 1,592.9 1,705.1 1,7163 1,720.6 1,733.7 1,748.8 1,770.1 1,784.5 1,775.2 1,782.4 1,780.1 1,792.4 Liabilities 17 Deposits 1,273.8 1,364.1 1,367.0 1,366.8 1,372.0 1,378.8 1,390.7 1,398.4 1,395.3 1,395.9 1,393.1 1,404.7 18 Transaction 281.6 286.0 288.9 282.6 284.2 288.1 287.6 288.9 284.7 286.6 286.5 300.2 19 Nontransaction 992.2 1,078.1 1,078.1 1,084.2 1,087.8 1,090.7 1,103.1 1,109.5 1,110.6 1,109.4 1,106.7 1,104.5 7n Large time 182.6 192.8 194.9 196.9 200.0 198.6 197.0 199.9 198.9 199.0 200.0 200.4 71 Other 809.6 885.3 883.2 887.3 887.8 892.1 906.0 909.6 911.7 910.3 906.7 904.0 7.2 Borrowings 161.6 185.2 191.3 189.5 195.4 200.1 210.4 212.0 208.5 210.0 211.7 214.3 73 From banks in the U.S 76.2 84.7 86.6 85.0 88.6 92.5 98.3 96.9 95.4 97.5 96.6 98.2 7.4 From others 85.5 100.5 104.7 104.5 106.8 107.5 112.1 115.1 113.1 112.4 115.1 116.1 75 Net due to related foreign offices .... 3.7 3.2 4.5 4.9 5.0 4.1 4.3 3.5 3.8 4.1 3.3 3.1 26 Other liabilities 28.3 30.3 30.5 31.4 32.2 33.2 32.7 35.9 34.8 35.8 35.8 36.4 27 Total liabilities 1,4675 1,582.8 15933 1,592.7 1,604.6 1,616.1 1,638.0 1,649.7 1,642.4 1,645.8 1,643.9 1,658.6 28 Residual (assets less liabilities)7 125.4 122.3 123.0 127.9 129.1 132.7 132.0 134.8 132.8 136.5 136.2 133.9 Not seasonally adjusted Assets 7.9 Bank credit 1,420.6 1,504.5 1,522.2 1,539.7 1,556.2 1,569.5 1,578.0 1,593.9 1,583.8 1,590.5 1,593.2 1,597.8 3n Securities in bank credit 404.6 437.5 445.3 450.4 454.8 458.9 459.2 461.4 460.0 461.7 460.8 462.1 31 U.S. government securities 308.9 328.3 334.5 338.2 340.8 343.7 343.7 343.7 343.5 344.3 343.0 344.3 37 Other securities 95.7 109.2 110.8 112.2 114.0 115.2 115.5 117.7 116.5 117.4 117.8 117.8 33 Loans and leases in bank credit2 1,016.0 1,067.0 1,076.9 1,089.4 1,101.3 1,110.6 1,118.8 1,132.5 1,123.8 1,128.9 1,132.3 1,135.7 34 Commercial and industrial 183.1 196.8 198.8 201.9 205.4 207.5 208.3 209.0 208.4 208.5 208.7 209.5 35 Real estate 559.7 599.2 606.2 612.4 621.0 628.2 634.8 643.0 639.1 641.2 642.8 644.5 36 Revolving home equity 28.4 28.4 28.4 28.7 29.2 29.4 29.5 29.7 29.6 29.7 29.7 29.6 37 Other 531.4 570.9 577.8 583.7 591.8 598.8 605.3 613.3 609.4 611.5 613.1 614.9 38 Consumer 194.7 197.2 197.4 200.8 200.8 200.6 200.2 204.1 200.0 202.9 204.6 206.0 39 Security3 5.8 5.7 5.8 5.6 5.2 5.2 5.3 5.3 5.4 5.2 5.2 5.2 40 Other loans and leases 72.7 68.0 68.7 68.7 68.9 69.1 70.2 71.1 70.9 71.1 71.1 70.5 41 Interbank loans 63.1 64.6 64.8 61.3 53.4 52.3 52.7 52.1 55.1 51.0 51.8 49.9 47 Cash assets4 63.2 70.2 68.0 68.2 70.9 70.7 71.1 69.5 70.0 69.9 67.0 68.2 43 Other assets5 61.5 74.2 75.3 77.5 78.6 80.9 84.4 86.3 87.8 87.7 85.0 84.6 44 Total assets6 13893 1,694.0 1,710.7 1,726.9 1,739.1 1,753.4 1,766.6 1,781.7 1,777.0 1,779.1 1,776.8 1,780.4 Liabilities 45 Deposits 1,271.5 1,346.6 1,360.0 1,372.0 1,374.6 1,382.1 1,388.1 1,397.0 1,399.3 1,394.6 1,392.2 1,392.6 46 Transaction 274.7 284.3 287.6 286.3 281.8 287.0 283.7 282.0 283.8 278.2 279.9 284.2 47 Nontransaction 996.7 1,062.3 1,072.4 1,085.7 1,092.8 1,095.1 1,104.4 1,115.0 1,115.5 1,116.4 1,112.3 1,108.5 48 Large time 182.6 192.8 194.9 196.9 200.0 198.6 197.0 199.9 198.9 199.0 200.0 200.4 49 Other 814.1 869.5 877.5 888.8 892.8 896.5 907.4 915.2 916.6 917.4 912.3 908.0 50 Borrowings 161.5 182.6 185.7 186.9 195.8 201.2 210.2 212.0 206.9 209.4 212.4 214.8 51 From banks in the U.S 75.5 83.5 84.2 83.3 88.4 92.8 97.4 96.2 93.8 96.5 96.3 97.7 52 From others 86.0 99.0 101.5 103.6 107.3 108.4 112.8 115.8 113.0 112.9 116.1 117.1 53 Net due to related foreign offices .... 3.7 3.2 4.5 4.9 5.0 4.1 4.3 3.5 3.8 4.1 3.3 3.1 54 Other liabilities 28.2 31.1 31.1 32.1 32.4 33.0 32.7 35.6 34.7 35.9 35.5 36.0 55 Total liabilities 1,464.9 1,563.5 1,5813 1,596.0 1,607.8 1,620.5 1,6353 1,648.1 1,644.7 1,644.0 1,643.5 1,646.5 56 Residual (assets less liabilities)7 124.5 130.6 129.5 130.9 131.3 132.9 131.3 133.5 132.3 135.1 133.4 133.9 MEMO 57 Mortgage-backed securities® 48.8 61.7 64.0 65.5 69.3 70.5 70.7 70.3 70.6 70.3 70.3 70.2 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 Domestic Financial Statistics • November 1999 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 1998 1999 1999 Aug. Feb. Mar. Apr. May" June" July" Aug. Aug. 4 Aug. 11 Aug. 18 Aug. 25 Seasonally adjusted Assets 1 Bank credit 594.2 565.9 549.8r 548.9" 538.9 531.4 519.1 522.5 526.4 522.9 521.3 520.0 2 Securities in bank credit 217.3 202.8 196.7 199.5 195.2 195.1 189.5 190.0 194.4 190.6 189.3 187.4 3 U.S. government securities 95.9 83.1 84.0 87.8 85.6 87.4 85.7 84.0 87.3 84.4 82.4 82.4 4 Other securities 121.4 119.7 112.8 111.7 109.6 107.7 103.8 106.0 107.0 106.2 106.9 105.0 5 Loans and leases in bank credit2 . .. 377.0" 363.0" 353.lr 349.4r 343.7 336.2 329.6 332.5 332.0 332.2 332.0 332.6 6 Commercial and industrial 214.4 211.8 209.9 208.3 200.8 195.6 191.5 194.5 194.0 194.1 193.4 194.9 7 Real estate 23.9 20.5 19.9 19.8 19.8 19.2 18.4 17.6 18.0 17.6 17.6 17.5 8 Security3 64.0r 59.5r 50.8r 51.9" 53.2 51.6 52.6 54.9 54.0 54.8 55.5 54.5 9 Other loans and leases 74.7r 71.3r 72.4r 69.5" 69.9 69.9 67.1 65.6 66.1 65.8 65.5 65.7 10 Interbank loans 20.0 31.5 25.7 25.4 26.6 24.5 27.4 25.7 28.3 24.9 27.0 26.0 11 Cash assets4 34.1 33.7 34.1 34.6 35.9 33.5 35.1 38.1 34.1 38.1 38.8 38.8 12 Other assets5 35.9 37.7 37.5 37.5 35.9 33.4 32.2 29.0 28.3 28.3 29.1 30.2 13 Total assets6 684.0r 668.4r 646.7r 646.1" 637.0 622.6 613.5 615.0 616.9 614.0 616.0 614.7 Liabilities 14 Deposits 306.9 319.7 310.2 311.9 310.4 305.7 310.0 308.7 308.6 312.7 308.6 304.8 15 Transaction 12.3 11.8 10.5 10.1 10.5 10.9 10.9 11.0 11.0 11.3 11.2 10.8 16 Nontransaction 294.6 307.9 299.6 301.8 299.9 294.8 299.1 297.7 297.6 301.4 297.4 294.0 17 Borrowings 191.7 179.8 173.5 172.1 172.7 180.9 171.9 171.9 174.2 169.5 168.6 168.8 18 From banks in the U.S 21.2 17.9 24.1 21.3 21.7 26.9 24.6 23.6 24.2 19.5 21.0 23.1 19 From others 170.4 161.9 149.4 150.8 151.0 154.0 147.3 148.3 150.0 150.0 147.6 145.7 20 Net due to related foreign offices 109.4 96.7 92.9 95.0 85.4 69.6 67.3 71.9 77.2 70.0 78.8 72.5 21 Other liabilities 73.7 69.8 67.3 66.5 59.3 60.8 63.5 61.7 62.2 60.3 62.3 62.4 22 Total liabilities 681.7 666.0 644.0 645.5 627.8 617.1 612.7 614.2 622.2 612^ 618-5 608.6 23 Residual (assets less liabilities)7 2.2 2.5r 2.7r .6" 9.2 5.5 .8 .8 -5.3 1.5 -2.3 6.2 Not seasonally adjusted Assets 24 Bank credit 590.9r 569.6 551.4r 546.0" 533.7 528.3 515.9 518.8 523.0 517.9 519.1 515.1 25 Securities in bank credit 216.6 204.5 197.8 197.9 193.5 194.2 187.9 188.7 192.4 188.8 188.5 186.0 26 U.S. government securities 95.2 83.4 84.8 87.4 86.4 87.8 85.2 83.0 85.8 83.5 81.9 81.3 27 Trading account 31.0 18.0 19.1 20.4 17.6 19.9 19.0 16.5 18.3 15.9 15.4 16.1 28 Investment account 64.1 65.4 65.7 67.0 68.8 67.9 66.2 66.5 67.5 67.6 66.5 65.3 29 Other securities 121.4 121.0 113.0 110.5 107.1 106.4 102.7 105.7 106.7 105.4 106.6 104.7 30 Trading account 76.5 73.6 69.1 67.4 65.7 63.4 61.0 65.2 64.8 64.3 65.7 65.1 31 Investment account 44.9 47.4 43.9 43.1 41.4 43.0 41.7 40.5 41.9 41.1 40.9 39.5 32 Loans and leases in bank credit2 .. . 374.3 365. lr 353.6r 348.2 340.1" 334.0 328.0 330.1 330.6 329.1 330.6 329.1 33 Commercial and industrial 212.6 213.6 210.3 206.8 198.1 193.9 190.7 192.8 192.8 192.4 192.5 192.7 34 Real estate 23.7 20.9 20.0 19.5 19.5 19.0 18.2 17.5 17.7 17.5 17.5 17.4 35 Security3 63.9r 59.2r 51.5r 51.9" 52.9" 51.8 52.2 54.9 54.4 54.5 55.9 54.2 36 Other loans and leases 74.0r 71.5r 71.8r 70.0" 69.6" 69.4 67.0 64.9 65.6 64.7 64.7 64.8 37 Interbank loans 20.0 31.5 25.7 25.4 26.6 24.5 27.4 25.7 28.3 24.9 27.0 26.0 38 Cash assets4 33.8 33.0 33.1 33.5 35.6 34.3 35.0 37.7 34.1 37.6 38.6 38.3 39 Other assets5 36.5 38.8 38.1 35.7 35.2 32.4 31.4 29.6 28.5 28.7 29.7 30.9 40 Total assets6 681.0" 672.6r 648.0" 640.4 630.7" 619.2 609.5 611.5 613.7 609.0 614.1 609.9 Liabilities 41 Deposits 304.3 318.5 313.5 311.3 312.8 306.4 307.5 306.1 306.3 309.1 305.2 303.7 42 Transaction 12.2 11.6 10.7 9.9 10.3 10.7 10.8 10.9 10.8 11.1 11.1 10.7 43 Nontransaction 292.1 306.9 302.8 301.4 302.5 295.7 296.7 295.2 295.5 298.1 294.1 293.0 44 Borrowings 191.7 179.8 173.5 172.1 172.7 180.9 171.9 171.9 174.2 169.5 168.6 168.8 45 From banks in the U.S 21.2 17.9 24.1 21.3 21.7 26.9 24.6 23.6 24.2 19.5 21.0 23.1 46 From others 170.4 161.9 149.4 150.8 151.0 154.0 147.3 148.3 150.0 150.0 147.6 145.7 47 Net due to related foreign offices .... 106.9 100.3 91.2 89.4 83.6 68.3 64.8 69.8 70.0 68.1 76.0 72.6 48 Other liabilities 73.9 71.4 67.4 65.4 58.8 60.3 62.6 61.8 61.6 60.5 62.6 62.7 49 Total liabilities 676.8 669.9 645.5 638J 627.8 616.0 606.8 609.7 612.1 607.2 612.4 607.8 50 Residual (assets less liabilities)7 4.2r 2.7" 2.5r 2.1" 2.9" 3.3 2.7 1.8 1.6 1.7 1.7 2.2 MEMO 51 Revaluation gains on off-balance-sheet items8 44.2 42.5 39.0 37.7 34.8 34.4 37.3 38.1 38.9 37.5 38.7 38.2 52 Revaluation losses on off-balancesheet items8 42.2 40.5 38.5 38.0 34.2 33.5 36.4 36.3 37.3 36.1 36.4 36.4 Footnotes appear on p. 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 group that contained the acquired bank and put into past data for the group containing the statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, ratio procedure is used to adjust past levels. "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks being published in the Bulletin. Instead, abbreviated balance sheets for both large and small in the United States, all of which are included in "Interbank loans." domestically chartered banks have been included in table 1.26, parts C and D. Data are both 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. securities. branches and agencies of foreign banks have been replaced by balance sheet estimates of all 4. Includes vault cash, cash items in process of collection, balances due from depository foreign-related institutions and are included in table 1.26, part E. These data are break- institutions, and balances due from Federal Reserve Banks. adjusted. 5. Excludes the due-from position with related foreign offices, which is included in "Net The not-seasonally-adjusted data for all tables now contain additional balance sheet items, due to related foreign offices." which were available as of October 2, 1996. 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for 1. Covers the following types of institutions in the fifty states and the District of transfer risk. Loans are reported gross of these items. Columbia: domestically chartered commercial banks that submit a weekly report of condition 7. This balancing item is not intended as a measure of equity capital for use in capital (large domestic); other domestically chartered commercial banks (small domestic); branches adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related seasonal patterns estimated for total assets and total liabilities. institutions). Excludes International Banking Facilities. Data are Wednesday values or pro 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and rata averages of Wednesday values. Large domestic banks constitute a universe; data for equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. small domestic banks and foreign-related institutions are estimates based on weekly samples 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications government-sponsored enterprises, and private entities. of assets and liabilities. 10. Difference between fair value and historical cost for securities classified as available- The data for large and small domestic banks presented on pp. A17-19 are adjusted to for-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are remove the estimated effects of mergers between these two groups. The adjustment for restated to include an estimate of these tax effects. mergers changes past levels to make them comparable with current levels. Estimated 11. Mainly commercial and industrial loans but also includes an unknown amount of credit quantities of balance sheet items acquired in mergers are removed from past data for the bank extended to other than nonfinancial businesses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A22 Domestic NonfinancialS tatistics • November 1999 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING A. Commercial Paper Millions of dollars, seasonally adjusted, end of period Year ending December 1999 IItteemm 1994 1995 1996 1997 1998 Feb. Mar. Apr. May June July 1 All issuers 595,382 674,904 775,371 966,699 1,163,303 1,178,303 1,204,627 1,219,789 1,230,009 1,221,020 1,242,107 Financial companies1 2 Dealer-placed paper, total2 223,038 275,815 361,147 513,307 614,142 615,053 684,616 697,030 710,857 705,603 712,718 3 Directly placed paper, total3 207,701 210,829 229,662 252,536 322,030 320,468 276,424 276,721 268,129 272,014 277,570 4 Nonfinancial companies4 164,643 188,260 184,563 200.857 227,132 242,782 243,587 246,038 251,023 243,404 251,819 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal, and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. B. Bankers Dollar Acceptances' Millions of dollars, not seasonally adjusted, year ending September2 Item 1995 1996 1997 1998 1 Total amount of reporting banks' acceptances in existence 29,242 25,832 25,774 14,363 2 Amount of other banks' eligible acceptances held by reporting banks 1,249 709 736 523 3 Amount of own eligible acceptances held by reporting banks (included in item 1) 10,516 7,770 6,862 4,884 4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries (included in item 1) 11,373 9,361 10,467 5,413 1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United 2. Data on bankers dollar acceptances are gathered from approximately 65 institutions; States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks; includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal agencies of foreign banks, and Edge and agreement corporations. The reporting group is Reserve Act (12 U.S.C. §372). revised every year. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Rate Period Average Average rate rate 8.50 1996 8.27 1997—Jan. . 8.25 1998—July . 8.25 1997 8.44 Feb. 8.25 Aug. 1998 . 8.35 Mar. 8.30 Sept. Apr. 8.50 Oct. . 1996—Jan. . 8.50 May 8.50 Nov. 8.25 Feb. 8.25 June 8.50 Dec. 8.00 Mar. 8.25 July . 8.50 7.75 Apr. 8.25 Aug. 8.50 1999—Jan. . May 8.25 Sept. 8.50 Feb. 8.00 June 8.25 Oct. . 8.50 Mar. 8.25 July . 8.25 Nov. 8.50 Apr. Aug. 8.25 Dec. 8.50 May Sept. 8.25 June Oct. . 8.25 1998—Jan. . 8.50 July . Nov. 8.25 Feb. 8.50 Aug. Dec. 8.25 Mar. 8.50 Sept. Apr. 8.50 May 8.50 June 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 1999 1999, week ending IItteemm 11999966 11999977 11999988 May June July Aug. July 30 Aug. 6 Aug. 13 Aug. 20 Aug. 27 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 5.30 5.46 5.35 4.74 4.76 4.99 5.07 5.01 5.06 4.96 5.03 5.02 2 Discount window borrowing2,4 5.02 5.00 4.92 4.50 4.50 4.50 4.56 4.50 4.50 4.50 4.50 4.57 Commercial paper!'5,6 Nonfinancial 3 1-month n.a. 5.57 5.40 4.79 4.95 5.06 5.18 5.07 5.11 5.14 5.18 5.23 4 2-month n.a. 5.57 5.38 4.80 4.98 5.08 5.23 5.09 5.16 5.20 5.24 5.28 5 3-month n.a. 5.56 5.34 4.81 4.98 5.11 5.25 5.12 5.18 5.24 5.27 5.30 Financial 6 1-month n.a. 5.59 5.42 4.80 4.96 5.08 5.20 5.09 5.13 5.17 5.20 5.26 7 2-month n.a. 5.59 5.40 4.82 5.00 5.10 5.24 5.10 5.18 5.22 5.25 5.30 8 3-month n.a. 5.60 5.37 4.83 5.04 5.14 5.28 5.14 5.21 5.27 5.32 5.32 Commercial paper (historical) 3,5,7 9 1-month 5.43 5.54 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 3-month 5.41 5.58 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 6-month 5.42 5.62 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Finance paper, directly placed (historical)3,5,8 12 1-month 5.31 5.44 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 3-month 5.29 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 6-month 5.21 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Bankers acceptances3'5'9 15 3-month 5.31 5.54 5.39 4.86 5.04 5.16 5.30 5.17 5.20 5.29 5.33 55..3366 16 6-month 5.31 5.57 5.30 4.89 5.14 5.42 5.64 5.46 5.51 5.62 5.68 5.70 Certificates of deposit, secondary market3,10 17 1-month 5.35 5.54 5.49 4.84 5.01 5.13 5.25 5.14 5.17 5.23 5.28 55..3300 18 3-month 5.39 5.62 5.47 4.92 5.13 5.24 5.41 5.27 5.35 5.41 5.43 5.42 19 6-month 5.47 5.73 5.44 5.03 5.31 5.58 5.83 5.64 5.75 5.85 5.86 5.86 20 Eurodollar deposits, 3-month3,11 5.38 5.61 5.45 4.90 5.09 5.21 5.36 5.20 5.25 5.38 5.40 5.39 U.S. Treasury bills Secondary market3,5 ?1 3-month 5.01 5.06 4.78 4.50 4.57 4.55 4.72 4.59 4.65 4.72 4.65 4.81 ?? 6-month 5.08 5.18 4.83 4.56 4.82 4.58 4.87 4.61 4.78 4.90 4.88 4.89 23 1-year 5.22 5.32 4.80 4.60 4.82 4.75 4.91 4.80 4.85 4.94 4.91 4.91 Auction high3,5,12 24 3-month 5.02 5.07 4.81 4.51 4.59 4.60 4.76 4.54 4.70 4.79 4.68 4.85 ?5 6-month 5.09 5.18 4.85 4.55 4.81 4.62 4.88 4.52 4.75 4.92 4.90 4.95 26 1-year 5.23 5.36 4.85 4.63 4.89 4.71 4.95 n.a. n.a. n.a. 4.95 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities13 77 1-year 5.52 5.63 5.05 4.85 5.10 5.03 5.20 5.07 5.13 5.23 5.20 5.19 78 2-year 5.84 5.99 5.13 5.25 5.62 5.55 5.68 5.59 5.64 5.77 5.68 5.61 29 3-year 5.99 6.10 5.14 5.33 5.70 5.62 5.77 5.65 5.73 5.87 5.75 5.69 30 5-year 6.18 6.22 5.15 5.44 5.81 5.68 5.84 5.75 5.86 5.97 5.81 5.71 31 7-year 6.34 6.33 5.28 5.64 6.05 5.94 6.15 6.03 6.14 6.31 6.12 6.02 32 10-year 6.44 6.35 5.26 5.54 5.90 5.79 5.94 5.86 5.95 6.08 5.91 5.81 33 20-year 6.83 6.69 5.72 6.08 6.36 6.28 6.43 6.34 6.42 6.52 6.43 6.35 34 30-year 6.71 6.61 5.58 5.81 6.04 5.98 6.07 6.05 6.12 6.19 6.03 5.93 Composite 35 More than 10 years (long-term) 6.80 6.67 5.69 6.04 6.31 6.22 6.37 6.29 6.37 6.47 6.36 6.28 STATE AND LOCAL NOTES AND BONDS Moody's series'4 36 Aaa 5.52 5.32 4.93 5.05 5.22 5.24 5.47 5.27 5.38 5.49 5.52 5.49 37 Baa 5.79 5.50 5.14 5.43 5.59 5.64 5.93 5.71 5.80 5.95 6.00 5.95 38 Bond Buyer series 5.76 5.52 5.09 5.18 5.37 5.36 5.58 5.41 5.49 5.57 5.65 5.61 CORPORATE BONDS 39 Seasoned issues, all industries16 7.66 7.54 6.87 7.32 7.62 7.57 7.77 7.67 7.75 7.89 7.75 7.67 Rating group 40 7.37 7.27 6.53 6.93 7.23 7.19 7.40 7.29 7.38 7.53 7.37 7.29 41 Aa 7.55 7.48 6.80 7.23 7.52 7.48 7.68 7.58 7.67 7.81 7.66 7.58 4? A 7.69 7.54 6.93 7.40 7.69 7.65 7.84 7.75 7.82 7.96 7.82 7.74 43 Baa 8.05 7.87 7.22 7.72 8.02 7.95 8.15 8.04 8.13 8.27 8.14 8.06 MEMO Dividend-price ratio 44 Common stocks 2.19 1.77 1.49 1.24 1.25 1.20 1.25 1.22 1.28 1.27 1.25 1.20 1. The daily effective federal funds rate is a weighted average of rates on trades through 11. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for New York brokers. indication purposes only. 2. Weekly figures are averages of seven calendar days ending on Wednesday of the 12. Auction date for daily data; weekly and monthly averages computed on an issue-date current week; monthly figures include each calendar day in the month. basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before 3. Annualized using a 360-day year or bank interest. that, they are weighted average yields from multiple-price auctions. 4. Rate for the Federal Reserve Bank of New York. 13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Depart- 5. Quoted on a discount basis. ment of the Treasury. 6. Interest rates interpolated from data on certain commercial paper trades settled by the 14. General obligation bonds based on Thursday figures; Moody's Investors Service. Depository Trust Company. The trades represent sales of commercial paper by dealers or 15. State and local government general obligation bonds maturing in twenty years are used direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' (http://www.federalreserve.gov/releases/cp) for more information. A1 rating. Based on Thursday figures. 7. An average of offering rates on commercial paper for firms whose bond rating is AA or 16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected the equivalent. Series ended August 29, 1997. long-term bonds. 8. An average of offering rates on paper directly placed by finance companies. Series 17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in ended August 29, 1997. the price index. 9. Representative closing yields for acceptances of the highest-rated money center banks. NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and 10. An average of dealer offering rates on nationally traded certificates of deposit. G. 13 (415) monthly statistical releases. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A24 Domestic NonfinancialS tatistics • November 1999 1.36 STOCK MARKET Selected Statistics : 1998' 1999 11999966 Dec. Jan. Feb. Mar. Apr. May June July Aug. Prices and trading volume (averages of daily figures)1 Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 357.98 456.99 550.65 576.05 595.43 588.70 603.69 627.75 635.62 629.53 648.83 621.03 2 Industrial 453.57 574.97 684.35 717.14 741.43 736.20 751.93 780.84 791.72 783.96 809.33 778.82 3 Transportation 327.30 415.08 468.61 456.70 479.72 477.47 491.25 523.08 537.88 520.66 528.72 492.13 4 Utility 126.36 143.87 190.52 215.57 224.75 218.24 218.11 228.48 242.98 241.36 250.50 241.84 5 Finance 303.94 424.84 516.65 510.31 523.38 514.75 544.08 564.99 562.66 546.43 557.92 521.59 6 Standard & Poor's Corporation (1941-43 = 10)2 670.49 873.43 1,085.50 1,190.05 1,248.77 1,246.58 1,281.66 1,334.76 1,332.07 1,322.55 1,380.99 1,327.49 7 American Stock Exchange (Aug. 31, 1973 = 50)3 570.86 628.34 682.69 660.76 704.22 699.15 711.08 748.29 787.02 772.01 803.75 781.33 Volume of trading (thousands of shares) 8 New York Stock Exchange 409,740 523,254 666,534 680,397 847,135 756,932 776,538 874,818 785,778 723,025 721,294 709,569 9 American Stock Exchange 22,567 24,390 28,870 28,756 31,015 31,774 29,563 38,895 35,241 28,806 25,754 27,795 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 97,400 126,090 140,980 140,980 153,240 151,530 156,440 172,880 177,984 176,930 178,360 176,390 Free credit balances at brokers5 11 Margin accounts6 22,540 31,410 40,250 40,250 36,880 38,850 40,120 41,200 41,250 42,865 44,330 44,230 12 Cash accounts 40,430 52,160 62,450 62,450 59,600 57,910 59,435 60,870 61,665 64,100 60,000 62,600 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 (i00 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 1999 11999966 11999977 11999988 Mar. Apr. May June My Aug. U.S. budget1 1 Receipts, total 1,453,062 1,579,292 1,721,798 130,292 266,142 98,587 199,479 121,905 126,314 2 On-budget 1,085,570 1,187,302 1,305,999 92,425 219,403 62,646 156,901 87,941 91,544 3 Off-budget 367,492 391,990 415,799 37,867 46,739 35,941 42,578 33,964 34,770 4 Outlays, total 1,560,512 1,601,235 1,652,552 152,701 152,683 122,556 145,911 147,068 128,827 5 On-budget 1,259,608 1,290,609 1,335,948 121,999 123,376 91,358 136,113 117,634 97,684 6 Off-budget 300,904 310,626 316,604 30,702 29,307 31,197 9,799 29,434 31,143 7 Surplus or deficit (-), total -107,450 -21,943 69,246 -22,409 113,459 -23,969 53,568 -25,164 -2,513 8 On-budget -174,038 -103,307 -29,949 -29,574 96,027 -28,712 20,788 -29,693 -6,140 9 Off-budget 66,588 81,364 99,195 7,165 17,432 4,744 32,779 4,530 3,627 Source of financing (total) 10 Borrowing from the public 129,712 38,171 -51,049 37,013 — 85,208 -551 -22,246 1,193 26,470 11 Operating cash (decrease, or increase (-)) -6,276 604 4,743 -16,988 -36,512 32,495 -27,459 13,553 3,160 12 Other 2 -15,986 -16,832 -22,940 2,384 8,261 -7,975 -3,863 10,418 -27,117 MEMO 13 Treasury operating balance (level, end of period) 44,225 43,621 38,878 21,626 58,138 25,643 53,102 39,549 36,389 14 Federal Reserve Banks 7,700 7,692 4,952 5,374 10,040 5,506 6,720 4,984 5,559 15 Tax and loan accounts 36,525 35,930 33,926 16,252 48,098 20,586 46,382 34,565 30,831 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 Treasuiy, 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 • November 1999 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1997 1998 1999 1999 11999977 11999988 H2 HI H2 HI June July Aug. RECEIPTS 1 All sources 1,579,292 1,721,798 773,810 922,630 825,057 965,636 199,479 121,905 126,314 2 Individual income taxes, net 737,466 828,586 354,072 447,514 392,332 481,527 92,993 59,975 60,709 3 Withheld 580,207 646,483 306,865 316,309 339,144 351,068 57,716 59,717 57,476 4 Nonwithheld 250,753 281,527 58,069 219,136 65,204 240,278 37,706 3,262 5,163 5 Refunds 93,560 99,476 10,869 87,989 12,032 109,875 22,,443388 33,,000066 11,,993311 Corporation income taxes 6 Gross receipts 204,493 213,249 104,659 109,353 104,163 106,861 40,610 5,303 5,115 7 Refunds 22,198 24,593 10,135 14,220 14,250 17,092 1,346 1,898 1,418 8 Social insurance taxes and contributions, net .. . 539,371 571,831 260,795 312,713 268,466 324,831 55,144 46,368 49,389 9 Employment taxes and contributions2 506,751 540,014 247,794 293,520 256,142 306,235 54,380 44,392 44,960 10 Unemployment insurance 28,202 27,484 10,724 17,080 10,121 16,378 370 1,573 4,085 11 Other net receipts3 4,418 4,333 2,280 2,112 2,202 2,216 393 403 344 12 Excise taxes 56,924 57,673 31,133 29,922 33,366 31,015 5,880 5,723 5,397 13 Customs deposits 17,928 18,297 9,679 8,546 9,838 8,440 1,599 1,725 1,814 14 Estate and gift taxes 19,845 24,076 10,262 12,971 12,359 14,915 1,857 1,938 2,175 15 Miscellaneous receipts4 25,465 32,658 13,348 15,829 18,735 15,140 2,742 2,771 3,131 OUTLAYS 16 All types 1,601,235 1,652,552 824,368 815,884 877,412 816,828 145,911 147,068 128,827 17 National defense 270,473 268,456 140,873 129,351 140,196 134,414 24,122 26,153 20,867 18 International affairs 15,228 13,109 9,420 4,610 8,297 6,879 1,053 569 530 19 General science, space, and technology 17,174 18,219 10,040 9,426 10,142 9,319 1,800 1,597 1,681 20 Energy 1,483 1,270 411 957 699 797 557 -13 26 21 Natural resources and environment 21,369 22,396 11,106 10,051 12,671 10,351 1,906 1,935 1,961 22 Agriculture 9,032 12,206 10,590 2,387 16,757 9,803 2,591 489 726 23 Commerce and housing credit -14,624 1,014 -3,526 -2,483 4,046 -1,629 -116 64 -1,386 24 Transportation 40,767 40,332 20,414 16,196 20,836r 17,082 3,882 3,375 3,838 25 Community and regional development 11,005 9,720 5,749 4,863 6,972 5,368 1,201 755 879 26 Education, training, employment, and social services 53,008 54,919 26,851 25,928 27,760 29,003 4,143 3,980 4,363 27 Health 123,843 131,440 63,552 65,053 67,836 69,320 12,307 11,685 11,959 28 Social security and Medicare 555,273 572,047 283,109 286,305 316,809 261,146 52,990 51,157 45,607 29 Income security 230,886 233,202 106,353 125,196 109,481 126,144 14,574 20,514 16,495 30 Veterans benefits and services 39,313 41,781 22,077 19,615 22,750 20,105 3,619 5,130 1,895 31 Administration of justice 20,197 22,832 10,212 11,287 12,041 13,149 2,536 1,935 2,349 32 General government 12,768 13,444 7,302 6,139 9,136 6,650 3,508 1,360 200 33 Net interest5 244,013 243,359 122,620 122,345 116,954 116,655 18,518 19,598 19,931 34 Undistributed offsetting receipts6 -49,973 -47,194 -22,795 -21,340 -25,795 -17,724 -3,278 -3,214 -3,095 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 miscellaneou sreceipts. 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, Budge tof the U.S. 3. Federal employee retirement contributions and civil service retirement and Government, Fiscal Year 2000; 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 All 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1997 1998 1999 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 5,410 5,446 5,536 5,573 5,578 5,556 5,643 5,681 5,668 2 Public debt securities 5,376 5,413 5,502 5,542 5,548 5,526 5,614 5,652 5,639 3 Held by public 3,805 3,815 3,847 3,872 3,790 3,761 3,787 3,795 3,685 4 Held by agencies 1,572 1,599 1,656 1,670 1,758 1,766 1,827 1,857 1,954 5 Agency securities 34 33 34 31 30 29 29 29 29 6 Held by public 26 26 27 26 26 26 29 28 28 7 Held by agencies 7 7 7 5 4 4 1 1 1 8 Debt subject to statutory limit 5,290 5,328 5,417 5,457 5,460 5,440 5,530 5,566 5,552 9 Public debt securities 5,290 5,328 5,416 5,456 5,460 5,439 5,530 5,566 5,552 10 Other debt1 0 0 0 0 0 0 0 0 0 MEMO 11 Statutory debt limit 5,500 5,950 5,950 5,950 5,950 5,950 5,950 5,950 5,950 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 1998 1999 TTyyppee aanndd hhoollddeerr 11999955 11999966 11999977 11999988 Q3 Q4 Q1 Q2 1 Total gross public debt 4,988.7 5,323.2 5,502.4 5,614.2 5,526.2 5,614.2 5,651.6 5,638.8 By type 2 Interest-bearing 4,964.4 5,317.2 5,494.9 5,605.4 5,518.7 5,605.4 5,643.1 5,629.5 3 Marketable 3,307.2 3,459.7 3,456.8 3,355.5 3,331.0 3,355.5 3,361.3 3,248.5 4 Bills 760.7 777.4 715.4 691.0 637.7 691.0 725.5 647.8 5 Notes 2,010.3 2,112.3 2,106.1 1,960.7 2,009.1 1,960.7 1,912.0 1,868.5 6 Bonds 521.2 555.0 587.3 621.2 610.4 621.2 632.5 632.5 7 Inflation-indexed notes and bonds' n.a. n.a. 33.0 50.6 41.9 50.6 59.2 59.9 8 Nonmarketable2 1,657.2 1,857.5 2,038.1 2,249.9 2,187.7 2,249.9 2,281.8 2,381.0 9 State and local government series 104.5 101.3 124.1 165.3 164.4 165.3 167.5 172.6 10 Foreign issues3 40.8 37.4 36.2 34.3 35.1 34.3 33.5 30.9 11 Government 40.8 47.4 36.2 34.3 35.1 34.3 33.5 30.9 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 181.9 182.4 181.2 180.3 180.8 180.3 180.6 180.0 14 Government account series4 1,299.6 1,505.9 1,666.7 1,840.0 1,777.3 1,840.0 1,870.2 1,967.5 15 Non-interest-bearing 24.3 6.0 7.5 8.8 7.5 8.8 8.5 9.3 By holder 5 16 U.S. Treasury and other federal agencies and trust funds 1,304.5 1,497.2 1,655.7 1,826.8 1,765.6 1,826.8 1,857.1 n.a. 17 Federal Reserve Banks 391.0 410.9 451.9 471.7 458.1 471.7 464.5 n.a. 18 Private investors 3,307.7 3,431.2 3,414.6 3,334.0 3,313.2 3,334.0 3,327.6 3,199.3 19 Depository institutions 315.4 296.6 300.3 237.4 244.4 237.4 247.6 n.a. 20 Mutual funds 286.4 315.8 321.3 339.5 319.1 339.5 341.3 n.a. 21 Insurance companies 241.5 214.1 176.6 144.6 150.7 144.6 137.7 n.a. 22 State and local treasuries6 289.8 257.0 239.3 269.3 266.4 269.3 266.6 n.a. Individuals 23 Savings bonds 185.0 187.0 186.5 186.7 186.0 186.6 186.7 186.6 24 Pension funds 474.5 505.1 539.1 547.0 537.9 547.0 544.9 n.a. 25 Private 298.7 314.6 334.3 345.4 341.4 345.4 347.3 n.a. 26 State and Local 175.8 190.5 204.8 201.6 196.5 201.6 197.6 n.a. 27 Foreign and international7 835.2 1,102.1 1,241.6 1,278.7 1,224.2 1,278.7 1,270.8 1,257.3 28 Other miscellaneous investors6,8 679.8 553.5 409.9 330.8 384.5 330.8 332.1 n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 1997. 7. Includes nonmarketable foreign series treasury securities and treasury deposit funds. 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Excludes treasury securities held under repurchase agreements in custody accounts at the tion, depository bonds, retirement plan bonds, and individual retirement bonds. Federal Reserve Bank of New York. 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- 8. Includes individuals, government-sponsored enterprises, brokers and dealers, bank rency held by foreigners. personal trusts and estates, corporate and noncorporate businesses, and other investors. 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual Public Debt of the United States; data by holder, Treasury Bulletin. holdings; data for other groups are Treasury estimates. 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 • November 1999 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1999 1999, week ending item May June July June 30 July 7 July 14 July 21 July 28 Aug. 4 Aug. 11 Aug. 18 Aug. 25 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 30,791 28,954 24,009 25,325 27,182 22,184 25,392 21,697 22,956 20,259 25,938 25,259 Coupon securities, by maturity 2 Five years or less 110099,,773366 9988,,773388 9933,,004477 9966,,118844 88,369 92,147 96,071 95,315 93,758 109,543 96,467 97,441 3 More than five years 76,896 61,981 53,586 59,964 51,859 58,826 48,561 52,692 59,602 82,361 78,109 57,413 4 Inflation-indexed 1,147 1,278 1,372 1,154 2,719 1,831 301 934 630 1,011 882 558 Federal agency 5 Discount notes 42,161 44,580 43,320 46,320 52,486 40,079 40,327 40,365 43,379 42,671 45,086 49,259 Coupon securities, by maturity 6 One year or less 11,,119944 667777 665522 505 649 681 413 810 788 475 930 885 7 More than one year, but less than or equal to five years 5,966 5,526 4.592 7,127 3,729 5,195 3,456 5,780 5,109 6,285 5,273 3,076 8 More than five years 4,333 4,256 4,278 2,524 2,266 4,990 5,405 3,835 5,814 7,213 3,870 2,400 9 Mortgage-backed 73,553 72,636 69,129 55,947 75,744 103,433 50,217 49,315 63,647 95,043 66,965 49,728 By type of counterparty With interdealer broker 10 U.S. Treasury 118,422 103,512 93,223 96,074 89,684 97,134 92,603 93,702 92,648 118,908 108,038 97,926 11 Federal agency 4,202 3,636 3,677 3,373 2,998 3,644 4,026 3,509 5,008 4,831 4,854 2,494 12 Mortgage-backed 26,585 26,565 25,013 21,558 25,896 32,366 19,405 23,394 22,485 30,892 27,936 2200,,000033 With other 13 U.S. Treasury 100,149 87,439 78,790 86,552 80,445 77,853 77,722 76,936 84,297 94,267 93,358 82,745 14 Federal agency 49,452 51,402 49,164 53,103 56,132 47,301 45,575 47,281 50,082 51,813 50,305 53,126 15 Mortgage-backed 46,968 46,072 44,117 34,389 49,849 71,067 30,812 25,921 41,162 64,152 39,028 29,725 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills n.a. 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 17 Five years or less 3,921 3,813 2,469 2,272 2,670 2,428 1,460 2,851 3,640 4,586 4,381 6,014 18 More than five years 18,045 14,278 12,348 12,802 12,078 14,767 10,616 11,915 12,391 15,454 14,282 15,022 19 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 0 Federal agency 20 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 21 One year or less 0 0 0 0 0 0 0 0 0 0 0 0 22 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 0 23 More than five years 0 0 0 0 0 0 0 0 0 0 0 0 24 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 0 OPTIONS TRANSACTIONS4 By type of underlying security 2255 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 2266 Five years or less 1,434 1,725 951 1,453 1,422 493 967 933 923 1,978 883 994 27 More than five years 6,556 4,992 3,892 0 3,450 4,716 3,720 3,780 3,647 6,026 4,592 4,868 28 Inflation-indexed 0 0 0 0 0 0 0 n.a. 0 0 0 0 Federal agency 29 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 30 One year or less 0 0 0 0 0 0 0 0 0 0 0 0 31 More than one year, but less than or equal to five years 0 0 0 0 n.a. n.a. 0 0 0 0 0 0 32 More than five years 0 0 0 0 0 0 0 0 n.a. 0 n.a. 0 33 Mortgage-backed 827 779 1,175 0 1,911 1,162 740 1,033 810 1,526 782 888 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 to be 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 mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A29 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1999 1999, week ending May June July June 30 July 7 July 14 July 21 July 28 Aug. 4 Aug. 11 Aug. 18 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 6,146 3,929 4,005 718 2,005 2,231 6,403 5,990 2,580 82 -105 Coupon securities, by maturity 2 Five years or less -33,183 -30,024 -25,332 -23,830 -26,206 -20,426 -26,617 -25,421 -31,534 -32,317 -33,271 3 More than five years -11,576 -15,615 -14,263 -16,523 -16,843 -16,676 -14,005 -10,817 -11,258 -6,537 -8,053 4 Inflation-indexed 2,523 2,036 3,202 1,701 3,250 3,051 2,983 3,570 3,095 3,328 3,286 Federal agency 5 Discount notes 19,406 16,953 21,732 13,845 23,313 24,717 16,857 21,611 22,734 25,937 26,270 Coupon securities, by maturity 6 One year or less 2,439 2,518 3,233 2,505 2,991 3,282 3,229 3,160 3,867 4,051 3,406 7 More than one year, but less than or equal to five years 6,001 6,288 7,633 7,273 8,095 8,614 7,655 7,135 5,376 5,924 6,975 8 More than five years 6,705 6,450 2,882 4,389 3,810 3,618 3,470 1,715 347 331 1,978 9 Mortgage-backed 16,251 14,787 18,844 13,294 21,758 20,409 19,606 15,746 13,840 20,397 18,723 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S. Treasury bills n.a. 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 11 Five years or less 7,117 8,731 7,576 8,162 7,599 6,368 6,354 8,023 12,151 13,851 12,925 12 More than five years -4,873 -827 -4,401 -336 -1,797 -4,517 -9,047 -3,180 -2,218 -3,923 -6,173 13 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 Federal agency 14 Discount notes 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 15 One year or less 0 0 0 0 0 0 0 0 0 0 0 16 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 17 More than five years 0 0 0 0 0 0 0 0 0 0 0 18 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 NET OPTIONS POSITIONS By type of deliverable security 19 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 20 Five years or less -142 -2,266 --22,,005599 -3,348 -3,163 -2,221 -983 -1,906 -1,972 -3,326 -2,192 21 More than five years -1,581 -1,000 8899 -1,410 -833 -409 -259 1,586 725 1,748 -307 22 Inflation-indexed n.a. 0 0 0 0 n.a. 0 n.a. n.a. 0 0 Federal agency 23 Discount notes 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 24 One year or less 0 0 0 0 0 0 0 0 0 0 0 25 More than one year, but less than or equal to five years 0 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 26 More than five years n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 27 Mortgage-backed 7,992 5,880 2,070 2,765 2,433 2,964 943 1,233 3,716 3,533 2,464 Financing5 Reverse repurchase agreements 28 Overnight and continuing 262,314 272,933 258,349 294,893 277,344 262,182 245,999 248,771 256,246 265,179 284,331 29 Term 806,177 790,804 821,067 702,127 778,711 806,537 835,362 848,690 855,989 905,104 703,068 Securities borrowed 30 Overnight and continuing 226,515 244,326 254,405 251,029 259,881 256,145 253,568 248,818 252,560 250,398 260,815 31 Term 97,977 91,955 90,588 90,872 88,437 89,560 91,383 92,555 91,564 90,094 88,964 Securities received as pledge 32 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. 33 Term 0 0 n.a. 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. Repurchase agreements 34 Overnight and continuing 660,275 651,952 675,629 643,332 675,783 686,633 671,765 668,449 675,359 686,176 700,660 35 Term 693,158 674,583 688,157 603,027 651,619 675,913 691,902 718,720 721,927 764,896 580,375 Securities loaned 36 Overnight and continuing 10,819 13,306 11,458 17,599 11,098 11,956 11,249 11,455 11,626 9,344 9,109 37 Term 6,566 5,886 6,991 5,190 6,732 6,184 7,307 7,593 7,337 7,461 7,317 Securities pledged 38 Overnight and continuing 47,279 49,670 55,853 57,683 56,751 56,164 55,411 55,191 55,603 52,507 56,013 39 Term 9,702 9,290 9,530 9,491 9,512 9,814 9,456 9,364 9,467 9,294 7,145 Collateralized loans 40 Total 16,223 14,760 17,509 9,512 13,496 17,095 17,096 21,564 19,340 15,807 19,308 1. Data for positions and financing are obtained from reports submitted to the Federal securities are included when the time to delivery is more than five business days. Forward Reserve Bank of New York by the U.S. government securities dealers on its published list of contracts for mortgage-backed agency securities are included when the time to delivery is primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar more than thirty business days. days of the report week are assumed to be constant. Monthly averages are based on the 4. Futures positions reflect standardized agreements arranged on an exchange. All futures number of calendar days in the month. positions are included regardless of time to delivery. 2. Securities positions are reported at market value. 5. Overnight financing refers to agreements made on one business day that mature on the 3. Net outright positions include immediate and forward positions. Net immediate posi- next business day; continuing contracts are agreements that remain in effect for more than one tions include securities purchased or sold (other than mortgage-backed agency securities) that business day but have no specific maturity and can be terminated without advance notice by have been delivered or are scheduled to be delivered in five business days or less and either party; term agreements have a fixed maturity of more than one business day. Financing "when-issued" securities that settle on the issue date of offering. Net immediate positions for data are reported in terms of actual funds paid or received, including accrued interest. mortgage-backed agency securities include securities purchased or sold that have been NOTE, "n.a." indicates that data are not published because of insufficient activity. delivered or are scheduled to be delivered in thirty business days or less. Forward positions reflect agreements made in the over-the-counter market that specify delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A30 Domestic Nonfinancial Statistics • November 1999 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1999 AAggeennccyy 11999955 11999966 11999977 11999988 Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies 844,611 925,823 1,022,609 1,296,477 1,324,812 1,347,872 1,377,524 1,404,576 1,425,396 2 Federal agencies 37,347 29,380 27,792 26,502 26,180 26,243 26,100 26,094 26,370 3 Defense Department' 6 6 6 6 6 6 6 6 6 4 Export-Import Bank2'3 2,050 1,447 552 n.a. n.a. n.a. n.a. n.a. n.a. 5 Federal Housing Administration4 97 84 102 205 69 80 84 88 99 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 5,765 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Tennessee Valley Authority 29,429 27,853 27,786 26,496 26,174 26,237 26,094 26,088 26,364 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 807,264 896,443 994,817 1,269,975 1,298,632 1,321,629 1,351,424 1,378,482 1,399,026 11 Federal Home Loan Banks 243,194 263,404 313,919 382,131 383,769 402,364 415,602 421,655 437,109 12 Federal Home Loan Mortgage Corporation 119,961 156,980 169,200 287,396 299,171 299,196 310,387 317,533 314,412 13 Federal National Mortgage Association 299,174 331,270 369,774 460,291 471,300 475,418 478,994 492,913 499,897 14 Farm Credit Banks8 57,379 60,053 63,517 63,488 66,622 66,529 67,527 66,608 67,749 15 Student Loan Marketing Association9 47,529 44,763 37,717 35,399 36,464 36,762 37,660 38,129 37,959 16 Financing Corporation10 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation11 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 78,681 58,172 49,090 44,129 43,151 41,454 41,637 41,131 40,585 Lending to federal and federally sponsored agencies 2 2 0 1 E Po x s p t o a r l t - S Im er p v o ic r e t 6 B ank3 2 5, , 7 0 6 4 5 4 n 1 . , a 4 . 3 1 n.a. 5 52 1 • 1 T • 1 F T 4 1 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2 2 3 4 T U e n n it n e e d s s S e t e a t V es a l R le a y i lw A a u y th o A r s it s y o ciation6 n 3 . , a 2 . 0 0 n n. . a a . . n n . . a a . . • I i 1 i I T 1 i 1 i I Other lending14 25 Farmers Home Administration 21,015 18,325 13,530 9,500 9,090 8,715 8,550 8,275 7,935 26 Rural Electrification Administration 17,144 16,702 14,898 14,091 14,100 13,980 13,999 13,997 13,877 27 Other 29,513 21,714 20,110 20,538 19,961 18,759 19,088 18,859 18,773 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 1999 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11999966 11999977 11999988 oorr uussee Jan. Feb. Mar. Apr. May June July Aug. 1 All issues, new and refunding1 171,222 214,694 262,342 16,926 16,233 24,323 15,758 16,234 23,428 18,671 15,746 By type of issue 2 General obligation 60,409 69,934 87,015 6,925 6,786 8,323 6,443 5,294 10,997 6,206 4,268 3 Revenue 110,813 134,989 175,327 10,001 9,446 16,000 9,315 10,941 12,431 12,465 11,478 By type of issuer 4 State 13,651 18,237 23,506 318 1,837 1,895 907 1,220 1,236 2,194 911 5 Special district or statutory authority2 113,228 134,919 178,421 12,929 11,145 14,604 10,010 11,279 18,414 13,572 11,578 6 Municipality, county, or township 44,343 70,558 60,173 3,679 3,251 7,825 4,841 3,735 3,779 2,906 3,257 7 Issues for new capital 112,298 135,519 160,568 11,917 10,674 16,201 10,474 12,149 19,509 12,172 12,530 By use of proceeds 8 Education 26,851 31,860 36,904 2,936 3,751 3,537 2,734 2,795 3,793 3,415 2,842 9 Transportation 12,324 13,951 19,926 1,706 628 1,640 1,107 1,791 1,650 1,264 1,955 10 Utilities and conservation 9,791 12,219 21,037 672 394 2,839 1,372 603 1,594 535 1,038 11 Social welfare 24,583 27,794 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Industrial aid 6,287 6,667 8,594 452 343 1,084 618 1,058 739 850 585 13 Other purposes 32,462 35,095 42,450 4,439 3,207 3,918 2,592 3,760 7,195 2,729 3,255 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 1998 1999 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999966 11999977 11999988 oorr iissssuueerr Dec. Jan. Feb. Mar. Apr. May June July 1 All issues' 773,110 929,256 l,128,491r 82,317r 93,665 103,175 126,161 85,862 110,475 96,608 96,340 2 Bonds2 651,104 811,376 l,001,736r 73,647r 86,529 92,885 116,440 76,721 94,713 88,338 83,744 By type of offering 3 Sold in the United States 567,671 708,188 923,771r 70,386r 76,511 82,871 101,024 65,886 86,730 79,031 68,815 4 Sold abroad 83,433 103,188 77,965 3,261 10,018 10,014 15,416 10,834 7,983 9,306 14,929 MEMO 5 Private placements, domestic 43,688 54,990 37,845 3,874 684 648 1,224 n.a. n.a. n.a. n.a. By industry group 6 Nonfinancial 167,904 222,603 307,935r 25,008 21,193 23,131 39,818 30,676 32,843 24,531 26,152 7 Financial 483,200 588,773 693,801r 48,639r 65,336 69,754 76,623 46,045 61,870 63,807 57,592 8 Stocks3 122,006 117,880 126,755 8,670 7,136 10,290 9,721 9,141 15,762 8,270 12,596 By type of offering 9 Public 122,006 117,880 126,755 8,670 7,136 10,290 9,721 9,141 15,762 8,270 12,596 10 Private placement4 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 80.460 60,386 74,113 7,559 3,701 8,911 8,534 7,640 10,425 6,436 11,128 12 Financial 41,546 57,494 52,642 1,111 3,435 1,379 1,187 1,501 5,337 1,834 1,468 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data include 144(a) offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data cover only public offerings. exclude secondary offerings, employee stock plans, investment companies other than closed- 4. Data are not available. end, intracorporate transactions, and Yankee bonds. Stock data include ownership securities SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A32 Domestic Financial Statistics • November 1999 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 1999 IItteemm 11999977 11999988 Jan. Feb. Mar. Apr. May June July Aug. 1 Sales of own shares2 1,190,900 1,461,430 161,889 132,199 164,290 166,324 140,422 138,502 140,926 133,167 2 Redemptions of own shares 918,728 1,217,022 135,713 128,125 146,479 139,035 127,800 117,953 128,173 125,881 3 Net sales3 272,172 244,408 26,176 4,074 17,811 27,288 12,622 20,550 12,754 7,286 4 Assets4 3,409,315 4,173,531 4,298,071 4,180,115 4,328,150 4,505,237 4,442,880 4,650,385 4,585,131 4,550,455 5 Cash5 174,154 191,393 203,470 198,134 198,741 211,243 211,580 214,779 209,061 209,550 6 Other 3,235,161 3,982,138 4,094,601 3,981,982 4,129,409 4,293,994 4,231,300 4,435,607 4,376,070 4,340,905 1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual 4. Market value at end of period, less current liabilities. funds. 5. Includes all U.S. Treasury securities and other short-term debt securities. 2. Excludes reinvestment of net income dividends and capital gains distributions and share SOURCE. Investment Company Institute. Data based on reports of membership, which issue of conversions from one fund to another in the same group. comprises substantially all open-end investment companies registered with the Securities and 3. Excludes sales and redemptions resulting from transfers of shares into or out of money Exchange Commission. Data reflect underwritings of newly formed companies after their market mutual funds within the same fund family. initial offering of securities. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data at seasonally adjusted annual rates 1997 1998 1999 AAccccoouunntt 11999966 11999977 11999988 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1 Profits with inventory valuation and capital consumption adjustment 750.4 817.9 824.6 840.9 820.8 829.2 820.6 827.0 821.7 868.8 859.6 2 Profits before taxes 680.2 734.4 717.8 758.9 736.4 719.1 723.5 720.5 708.1 752.6 768.2 3 Profits-tax liability 226.1 246.1 240.1 254.2 249.3 239.9 241.6 243.2 235.6 250.7 257.5 4 Profits after taxes 454.1 488.3 477.7 504.7 487.1 479.2 481.8 477.3 472.5 501.9 510.7 5 Dividends 261.9 275.1 279.2 275.1 276.4 277.3 278.1 279.0 282.3 285.6 289.7 6 Undistributed profits 192.3 213.2 198.5 229.5 210.6 201.8 203.7 198.3 190.2 216.4 221.0 7 Inventory valuation -1.2 6.9 14.5 4.8 4.3 25.3 7.8 11.7 13.4 11.6 -17.1 8 Capital consumption adjustment 71.4 76.6 92.3 77.2 80.1 84.9 89.4 94.8 100.2 104.6 108.6 SOURCE. U.S. Department of Commerce, Survey of Current Business. 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1997 1998 1999 AAccccoouunntt 11999966 11999977 11999988 Q4 Qi Q2 Q3 Q4 Qlr Q2 ASSETS 1 Accounts receivable, gross2 637.1 663.3 711.7 663.3 667.2 676.0 687.6 711.7 733.8 756.5 2 Consumer 244.9 256.8 261.8 256.8 251.7 251.3 254.0 261.8 261.7 269.2 3 Business 309.5 318.5 347.5 318.5 325.9 334.9 335.1 347.5 362.8 373.7 4 Real estate 82.7 87.9 102.3 87.9 89.6 89.9 98.5 102.3 109.2 113.5 5 LESS: Reserves for unearned income 55.6 52.7 56.3 52.7 52.1 53.2 52.4 56.3 52.9 53.4 6 Reserves for losses 13.1 13.0 13.8 13.0 13.1 13.2 13.2 13.8 13.4 13.4 7 Accounts receivable, net 568.3 597.6 641.6 597.6 601.9 609.6 622.0 641.6 667.6 689.7 8 All other 290.0 312.4 337.9 312.4 329.7 340.1 313.7 337.9 363.3 373.2 9 Total assets 858.3 910.0 979.5 910.0 931.6 949.7 935.7 979.5 1,030.8 1,062.9 LIABILITIES AND CAPITAL 10 Bank loans 19.7 24.1 26.3 24.1 22.0 22.3 24.9 26.3 24.8 25.1 11 Commercial paper 177.6 201.5 231.5 201.5 211.7 225.9 226.9 231.5 222.9 231.0 Debt 12 Owed to parent 60.3 64.7 61.8 64.7 64.6 60.0 58.3 61.8 64.6 65.4 13 Not elsewhere classified 332.5 328.8 339.7 328.8 338.2 348.7 337.6 339.7 366.7 383.1 14 All other liabilities 174.7 189.6 203.2 189.6 193.1 188.9 185.4 203.2 220.3 226.1 15 Capital, surplus, and undivided profits 93.5 101.3 117.0 101.3 102.1 103.9 103.6 117.0 131.5 132.2 16 Total liabilities and capital 858.3 910.0 979.5 910.0 931.6 949.7 936.6 979.5 1,030.8 1,062.9 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Securities Market and Corporate Finance A3 3 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 1999 TTyyppee ooff ccrreeddiitt 11999966 11999977 Feb. Mar. Apr. May June July Seasonally adjusted 1 Total 761.9 809.8 874.9 898.4 911.3 919.5r 931.9r 938.1r 954.6 2 Consumer 307.7 327.7 352.5 360.7 363.4 363.2r 369.5r 372.4r 375.9 3 Real estate 111.9 121.1 131.4 135.7 137.5 141.2r 142.8 141.2 144.2 4 Business 342.4 361.0 391.0 402.0 410.4 415.2r 419.5 424.5r 434.5 Not seasonally adjusted 5 Total 769.7 818.1 884.0 897.8 911.9 919.4r 931.6 942.9 948.8 6 Consumer 310.6 330.9 356.1 357.4 359.7 360.9r 368.3 374.6 378.1 7 Motor vehicles loans 86.7 87.0 103.1 105.0 104.7 106.8 105.1 108.6 108.5 8 Motor vehicle leases 92.5 96.8 93.3 94.5 93.9 94.8 95.3 95.6 97.0 9 Revolving2 32.5 38.6 32.3 31.5 31.2 31.5 31.7 32.4 32.8 10 Other3 33.2 34.4 33.1 32.5 32.0 32.0 32.0 32.6 32.0 Securitized assets4 11 Motor vehicle loans 36.8 44.3 54.8 54.9 59.0 57.8 65.8 65.3 68.3 12 Motor vehicle leases 8.7 10.8 12.7 12.3 12.0 11.8 11.6 11.3 11.1 13 Revolving .0 .0 8.7 8.7 9.1 8.8 8.6 9.7 9.7 14 Other 20.1 19.0 18.1 18.1 17.8 17.6 18.3 19.0 18.6 15 Real estate 111.9 121.1 131.4 135.7 137.5 141.2r 143.2 141.2 144.2 16 One- to four-family 52.1 59.0 75.7 80.3 77.7 81.7 83.6 80.5 83.6 17 Other 30.5 28.9 26.6 27.1 31.6 31.6 31.9 33.0 33.1 Securitized real estate assets4 18 One- to four-family 28.9 33.0 29.0 28.3 28.0 21.& 27.4 27.5 27.2 19 Other .4 .2 .1 .1 .3 .3 .3 .2 .2 20 Business 347.2 366.1 396.5 404.6 414.8 416.3 418.2 427.1 426.6 21 Motor vehicles 67.1 63.5 79.6 82.1 84.8 86.2 84.4 82.8 78.8 22 Retail loans 25.1 25.6 28.1 28.9 30.0 30.7 31.6 30.9 31.7 23 Wholesale loans5 33.0 27.7 32.8 34.3 36.0 36.5 33.8 32.7 27.9 24 Leases 9.0 10.2 18.7 18.9 18.8 18.9 19.0 19.2 19.3 75 Equipment 194.8 203.9 198.0 200.7 202.3 203.1 203.7 208.3 208.4 26 Loans 59.9 51.5 50.4 51.0 51.6 52.0 51.7 53.3 52.9 27 Leases 134.9 152.3 147.6 149.8 150.7 151.0 152.0 155.1 155.5 28 Other business receivables6 47.6 51.1 69.9 73.3 75.7 75.8 76.7 82.6 89.2 Securitized assets4 29 Motor vehicles 24.0 33.0 29.2 28.8 31.0 30.5 32.0 32.1 28.4 30 Retail loans 2.7 2.4 2.6 2.4 2.4 2.4 2.2 2.9 2.8 31 Wholesale loans 21.3 30.5 24.7 24.6 26.6 26.2 27.8 27.2 23.5 32 Leases .0 .0 1.9 1.9 1.9 1.9 1.9 2.0 2.0 33 Equipment 11.3 10.7 13.0 12.9 12.8 12.5 13.2 13.3 13.8 34 Loans 4.7 4.2 6.6 6.2 6.1 5.8 6.5 6.7 7.1 35 Leases 6.6 6.5 6.4 6.7 6.7 6.6 6.6 6.6 6.7 36 Other business receivables6 2.4 4.0 6.8 6.8 8.2 8.3 8.3 8.0 7.9 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidiarbreakdowns have been obtained for some components. In addition, previously unavailable ies of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistica lrelease. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A34 Domestic NonfinancialS tatistics • November 1999 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1999 IItteemm 11999966 11999977 11999988 Feb. Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 182.4 180.1 195.2 204.1 211.0 209.4 207.5 211.0 207.6 213.8 2 Amount of loan (thousands of dollars) 139.2 140.3 151.1 155.4 162.9 162.4 161.6 162.0 158.2 163.1 3 Loan-to-price ratio (percent) 78.2 80.4 80.0 78.2 79.4 79.5 79.8 79.0 78.6 78.3 4 Maturity (years) 27.2 28.2 28.4 28.7 28.8 28.9 28.7 28.6 28.5 28.5 5 Fees and charges (percent of loan amount)2 1.21 1.02 .89 .92 .82 .77 .69 .72 .83 .68 Yield (percent per year) 6 Contract rate1 7.56 7.57 6.95 6.78 6.74 6.74 6.78 6.92 7.16 6.99 7 Effective rate1'3 7.77 7.73 7.08 6.92 6.86 6.85 6.89 7.03 7.29 7.09 8 Contract rate (HUD series)4 8.03 7.76 7.00 7.02 7.03 6.93 7.17 7.59 7.75 7.87 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 8.19 7.89 7.04 7.10 7.07 7.08 7.58 8.13 8.00 8.10 10 GNMA securities6 7.48 7.26 6.43 6.42 6.58 6.50 6.79 7.21 7.28 7.53 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 287,052 316,678 414,515 431,836 440,139 446,025 464,530 473,315r 480,651 495,302 12 FHA/VA insured 30,592 31,925 33,770 34,000 34,870 36,158 38,938 41,143 44,132 47,846 13 Conventional 256,460 284,753 380,745 397,836 405,269 409,867 425,592 432,172 436,519 447,456 14 Mortgage transactions purchased (during period) 68,618 70,465 188,448 22,029 16,923 14,225 25,640 15,934 14,004 21,094 Mortgage commitments (during period) 15 Issued7 65,859 69,965 193,795 26,509 16,891 20,192 12,517 19,507 12,966 18,153 16 To sell8 130 1,298 1,880 0 266 75 178 351 260 478 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 137,755 164,421 255,010 262,921 277,624 284,006 285,881 299,184 300,093 306,214 18 FHA/VA insured 220 177 785 755 754 1,613 1,610 l,726r 1,735 1,708 19 Conventional 137,535 164,244 254,225 262,166 276,870 282,393 284,271 297,458r 298,358 304,506 Mortgage transactions (during period) 20 Purchases 125,103 117,401 267,402 25,225 29,921 26,473 22,503 21,950 17,602 18,674 21 Sales 119,702 114,258 250,565 24,231 28,740 25,464 21,972 20,349 16,835 17,468 22 Mortgage commitments contracted (during period)9 128,995 120,089 281,899 24,829 32,546 24,050 20,052 21,610 14,988 18,951 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 1998 1999 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999955 11999966 11999977 Q2 Q3 Q4 Ql Q2 1 All holders 4,603r384r 4,898,661r 5,212,073r 5,434,008r 5,568,417r 5,722,421r 5,861,070r 6,013,592 By type of property 2 One- to four-family residences 3,509,721r 33,,771199,,001100'' 3,954,854r 4,117,231' 4,217,417' 4,322,453' 4,414,500' 4,527,176 3 Multifamily residences 211,002' 294,783r 310,456r 323,324' 330,595' 340,782' 351,652' 359,796 4 Nonfarm, nonresidential 732,100r 797,734r 856,464r 900,453' 926,039' 962,680' 997,514' 1,026,903 5 Farm 84,561 87,134 90,299 93,001' 94,367' 96,506' 97,403' 99,717 By type of holder 6 Major financial institutions 1,900,089 1,981,885 2,083,978 2,121,961' 2,137,438' 2,195,376' 2,202,494' 2,243,008 7 Commercial banks2 1,090,189 1,145,389 1,245,315 1,281,870' 1,295,828' 1,337,772' 1,337,218' 1,361,947 8 One- to four-family 646,545 677,603 745,510 770,116' 770,340' 797,533' 782,441' 790,465 9 Multifamily 42,521 45,451 49,670 51,227' 52,205' 52,871r 56,170' 58,572 in Nonfarm, nonresidential 377,293 397,452 423,148 432,208' 444,596' 458,333' 469,095' 482,367 n Farm 23,830 24,883 26,986 28,319 28,688 29,035' 29,512 30,544 12. Savings institutions3 596,763 628,335 631,822 632,359 634,251' 643,964' 646,213' 656,383 13 One- to four-family 482,353 513,712 520,672 522,088 525,844' 533,792' 534,494' 544,659 14 Multifamily 61,987 61,570 59,543 58,908 56,696' 56,825' 56,763' 55,002 15 Nonfarm, nonresidential 52,135 52,723 51,252 50,978 51,312' 52,930' 54,521' 56,279 16 Farm 288 331 354 386 399 417 435 444 17 Life insurance companies 213,137 208,161 206,841 207,732 207,359 213,640 219,063' 224,677 18 One- to four-family 8,890 6,977 7,187 6,814 6,594 6,590 6,956' 7,285 19 Multifamily 28,714 30,750 30,402 30,618 30,565 31,522 31,528' 32,321 20 Nonfarm, nonresidential 165,876 160,314 158,780 159,456 159,189 164,004 168,862' 173,106 21 Farm 9,657 10,120 10,472 10,844 11,011 11,524 11,717' 11,965 22 Federal and related agencies 308,757 295,192 286,167 287,161 287,125 292,636 288,313' 288,235 23 Government National Mortgage Association 2 2 8 8 7 7 6' 8 24 One- to four-family 2 2 8 8 7 7 6' 8 25 Multifamily 0 0 0 0 0 0 0 0 26 Farmers Home Administration4 41,791 41,596 41,195 40,921 40,907 40,851 40,691 40,691 27 One- to four-family 17,705 17,303 17,253 17,059 17,025 16,895 16,777 16,777 28 Multifamily 11,617 11,685 11,720 11,722 11,736 11,739 11,731 11,731 29 Nonfarm, nonresidential 6,248 6,841 7,370 7,497 7,566 7,705 7,769 7,769 30 Farm 6,221 5,768 4,852 4,644 4,579 4,513 4,413 4,413 31 Federal Housing and Veterans' Administrations 9,809 6,244 3,821 3,631 3,405 3,674 3,675 3,684 32 One- to four-family 5,180 3,524 1,767 1,610 1,550 1,849 1,850 1,818 33 Multifamily 4,629 2,719 2,054 2,021 1,855 1,825 1,825 1,867 34 Resolution Trust Corporation 1,864 0 0 0 0 0 0 0 35 One- to four-family 691 0 0 0 0 0 0 0 36 Multifamily 647 0 0 0 0 0 0 0 37 Nonfarm, nonresidential 525 0 0 0 0 0 0 0 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 4,303 2,431 724 564 482 361 315 189 40 One- to four-family 492 365 109 85 72 54 47 28 41 Multifamily 428 413 123 96 82 61 54 32 42 Nonfarm, nonresidential 3,383 1,653 492 384 328 245 214 129 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 178,807 168,813 161,308 159,816 159,104 157,675 157,185 155,637 45 One- to four-family 163,648 155,008 149,831 149,383 149,069 147,594 147,063 145,033 46 Multifamily 15,159 13,805 11,477 10,433 10,035 10,081 10,122 10,604 47 Federal Land Banks 28,428 29,602 30,657 31,352 32,009 32,983 33,128 33,744 48 One- to four-family 1,673 1,742 1,804 1,845 1,883 1,941 1,949 1,985 49 Farm 26,755 27,860 28,853 29,507 30,126 31,042 31,179 31,758 50 Federal Home Loan Mortgage Corporation 43,753 46,504 48,454 50,869 51,211 57,085 53,313' 54,282 51 One- to four-family 39,901 41,758 42,629 44,597 44,254 49,106 44,140' 43,574 52 Multifamily 3,852 4,746 5,825 6,272 6,957 7,979 9,173 10,708 53 Mortgage pools or trusts5 1,863,210 2,064,882 2,273,022r 2,442,715' 2,548,301' 2,632,839' 2,762,770' 2,861,430 54 Government National Mortgage Association 472,283 506,340 536,879r 537,743' 541,540' 537,446' 543,306' 553,316 55 One- to four-family 461,438 494,158 523,225r 523,400' 527,043' 522,498' 527,912' 537,407 56 Multifamily 10,845 12,182 13,654 14,343 14,497 14,948 15,395' 15,909 57 Federal Home Loan Mortgage Corporation 515,051 554,260 579,385 609,791 635,726 646,459 687,179 718,085 58 One- to four-family 512,238 551,513 576,846 607,469 633,124 643,465 684,240 714,844 59 Multifamily 2,813 2,747 2,539 2,322 2,602 2,994 2,939 3,241 60 Federal National Mortgage Association 582,959 650,780 709,582 761,359 798,460 834,518 881,815 911,435 61 One- to four-family 569,724 633,210 687,981 737,631 770,979 804,205 849,513 877,863 62 Multifamily 13,235 17,570 21,601 23,728 27,481 30,313 32,302 33,572 63 Farmers Home Administration4 11 3 2 2 2 1 1 1 64 One- to four-family 2 0 0 0 0 0 0 0 65 Multifamily 0 0 0 0 0 0 0 0 66 Nonfarm, nonresidential 5 0 0 0 0 0 0 0 67 Farm 4 3 2 2 2 1 1 1 68 Private mortgage conduits 292,906 353,499 447,173 533,820 572,573 614,416' 650,469' 678,594 69 One- to four-family6 227,800 261,900 318,000 364,316 391,736 410,900 430,653 447,938 70 Multifamily 15,584 21,967 29,218 38,098 40,895 44,654 48,403 50,713 71 Nonfarm, nonresidential 49,522 69,633 99,955 131,406 139,942 158,862' 171,4I3r 179,942 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 531,329r 556,702r 568,907r 582,171' 595,552' 601,570' 607,493' 620,919 74 One- to four-family 371,44ff 360,235r 362,033' 370,811' 377,896' 386,025' 386,458' 397,491 75 Multifamily 64,970r 69,179r 72,629' 73,536' 74,987' 74,971' 75,249' 75,524 76 Nonfarm, nonresidential 77,112r 109,119r 115,467' 118,525' 123,107' 120,600' 125,6401 127,312 77 Farm 17,806 18,169 18,779 19,299' 19,562' 19,974' 20,147' 20,592 1. Multifamily debt refers to loans on structures of five or more units. 6. Includes securitized home equity loans. 2. Includes loans held by nondeposit trust companies but not loans held by bank trust 7. Other holders include mortgage companies, real estate investment trusts, state and local departments. credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and 3. Includes savings banks and savings and loan associations. finance companies. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from SOURCE. Based on data from various institutional and government sources. Separation of FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting nonfarm mortgage debt by type of property, if not reported directly, and interpolations and changes by the Farmers Home Administration. extrapolations, when required for some quarters, are estimated in part by the Federal Reserve. 5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by Line 69 from Inside Mortgage Securities and other sources. the agency indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A36 Domestic Nonfinancial Statistics • November 1999 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 1999 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999966 11999977 11999988 Feb. Mar. Apr.r Mayr June July Seasonally adjusted 1 Total 1,182,439 1,234,122 1,300,491 1,325,101 1,332,139 1,331,798 1,342,247 1,345,451 1,354,323 2 Revolving 499,532 531,295r 560,653 566,858 567,283 570,084 572,236 577,743 583,570 3 Nonrevolving2 682,907 702,828 739,838 758,244 764,857 761,715 770,011 767,708 770,753 Not seasonally adjusted 4 Total 1,211,590 1,264,103 1,331,742 1,318,872 1,318,611 1,321,162 1,330,096 1,338,045 1,347,522 By major holder 5 Commercial banks 526,769 512,563 508,932 500,429 494,039 494,663 492,852 477,774 478,084 6 Finance companies 152,391 160,022 168,491 169,013 167,815 170,145 168,490 173,617 173,374 7 Credit unions 144,148 152,362 155,406 155,203 155,110 155,933 156,924 156.658 158,299 8 Savings institutions 44,711 47,172 51,611 52,953 53,623 54,803 55,982 57,161 58,340 9 Nonfinancial business 77,745 78,927 74,877 67,948 67,138 67,117 68,058 68,050 68,236 10 Pools of securitized assets3 265,826 313,057 372,425 373,326 380,886 378,501 387,790 404,785 411.189 By major type of credit4 11 Revolving 522,860 555,858 586,528 567,549 561,542 564,128 566,295 571,684 575,757 12 Commercial banks 228,615 219,826 210,346 197,623 190,028 191,295 190,216 178,031 177,098 13 Finance companies 32,493 38,608 32,309 31,544 31,197 31,327 31,296 32,408 32,846 14 Credit unions 17,826 19,552 19,930 19,202 18,894 19,044 19,008 19,189 19,385 15 Savings institutions 10,313 11,441 12,450 12,399 12,373 12,507 12,641 12,775 12,909 16 Nonfinancial business 44,901 44,966 39,166 34,337 33,754 33,726 34,446 34,618 34,794 17 Pools of securitized assets3 188,712 221,465 272,327 272,444 275,296 276,229 278,688 294,663 298,725 18 Nonrevolving credit 688,730 708,245 745,214 751,323 757,069 757,034 763,801 766,361 771,765 19 Commercial banks 298,154 292,737 298,586 302,806 304,011 303,368 302,636 299,743 300,986 20 Finance companies 119,898 121,414 136,182 137,469 136,618 138,818 137,194 141,209 140,528 21 Credit unions 126,322 132,810 135,476 136,001 136,216 136,889 137,916 137,469 138,914 22 Savings institutions 34,398 35,731 39,161 40,554 41,250 42,296 43,341 44,386 45,431 23 Nonfinancial business 32,844 33,961 35,711 33,611 33,384 33,391 33,612 33,432 33,442 24 Pools of securitized assets3 77,114 91,592 100,098 100,882 105,590 102,272 109,102 110,122 112,464 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 3. Outstanding balances of pools upon which securities have been issued; these balances extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly are no longer carried on the balance sheets of the loan originator. statistical release. For ordering address, see inside front cover. 4. Totals include estimates for certain holders for which only consumer credit totals are 2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not available. included in revolving credit, such as loans for education, boats, trailers, or vacations. These loans may be secured or unsecured. 1.56 TERMS OF CONSUMER CREDIT1 Percent per year except as noted 1998 1999 IItteemm 11999966 11999977 11999988 Dec. Feb. Mar. Apr. May June July INTEREST RATES Commercial banks2 1 48-month new car 9.05 9.02 8.72 n.a. 8.34 n.a. n.a. 8.30 n.a. n.a. 2 24-month personal 13.54 13.90 13.74 n.a. 13.41 n.a. n.a. 13.26 n.a. n.a. Credit card plan 3 All accounts 15.63 15.77 15.71 n.a. 15.41 n.a. n.a. 15.21 n.a. n.a. 4 Accounts assessed interest 15.50 15.57 15.59 n.a. 14.73 n.a. n.a. 14.94 n.a. n.a. Auto finance companies 5 New car 9.84 7.12 6.30 6.22 6.43 6.31 6.52 6.57 6.60 6.70 6 Used car 13.53 13.27 12.64 11.81 12.08 12.09 12.17 12.16 12.31 12.69 OTHER TERMS3 Maturity (months) 7 New car 51.6 54.1 52.1 52.1 53.4 53.0 52.8 52.4 52.3 52.0 8 Used car 51.4 51.0 53.5 56.0 55.9 56.0 56.0 56.1 56.0 56.1 Loan-to-value ratio 9 New car 91 92 92 92 92 91 92 92 92 92 10 Used car 100 99 99 99 99 99 99 99 99 100 Amount financed (dollars) 11 New car 16,987 18,077 19,083 19,628 19,304 19,339 19,435 19,539 19,722 19.874 12 Used car 12,182 12,281 12,691 13,497 13,604 13,653 13,647 13,700 13,816 13,604 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 1997 1998r 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999933 11999944 Q4r Ql Q2 Q3 Q4 Qlr Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors ... 584.4r 575.8r 720.4r 743.0r 785.3r 912.0 1,075.5 1,042.4 899.2 1,072.8 1,248.1 865.6 By sector and instrument 2 Federal government 256.1 155.8r 144.4 145.0 23.1 -5.5 -14.5 -28.4 -113.5 -54.1 -75.2 -112.2 Treasury securities 248.3 155.7 142.9 146.6 23.2 -7.3 -12.1 -26.9 -113.1 -66.3 -73.7 -112.8 4 Budget agency securities and mortgages 7.8 .2 1.5 -1.6 -.1 1.7 -2.4 -1.4 -.4 12.2 -1.5 .6 5 Nonfederal 328.3r 420.0r 576.0r 598.0r 762.2' 917.5 1,090.0 1,070.8 1,012.6 1,127.0 1,323.3 977.8 By instrument 6 Commercial paper 10.0 21.4 18.1 -.9 13.7 12.8 51.1 3.8 85.6 -43.0 64.4 3.4 7 Municipal securities and loans 74.8 -35.9 -48.2 2.6 71.4 99.9 113.5 101.3 82.9 89.6 100.7 48.0 8 Corporate bonds 75.2 23.3 91.lr 116.3r 150.5r 163.6 278.8 294.8 108.0 193.2 274.0 260.8 9 Bank loans n.e.c 6.4 75.2 103.7r 70.5r 106.5r 178.1 35.0 169.2 107.8 120.9 70.0 21.8 10 Other loans and advances -18.9 34.0 67.2 33.5r 69. lr 141.4 76.3 40.8 77.7 102.5 114.1 -5.3 11 Mortgages 122.4r 177.0 205.1 287,4r 298.4r 278.6 476.4 398.9 471.1 593.8 573.4 595.7 1? Home 160.1r 183.4r 179.8r 243.0 235.8 188.8 376.5 287.3 373.7 427.8 414.6 424.2 13 Multifamily residential -5.1 -2.1 7.6 11.5 10.8 18.3 21.6 21.1 16.1 30.6 35.9 36.8 14 Commercial -33.6 -6.5 16.2 30.4r 48.7r 68.6 74.1 83.8 75.9 126.8 119.3 125.4 15 Farm 1.0 2.2 1.6 2.6 3.2 2.9 4.1 6.7 5.5 8.6 3.6 9.3 16 Consumer credit 58.4r 124.9 138.9 88.8 52.5 43.1 58.9 62.1 79.6 69.9 126.6 53.2 By borrowing sector 17 Household 209.4r 316.3r 350.3r 351.7r 325.5r 311.1 463.3 418.5 471.9 527.3 553.3 511.0 18 Nonfinancial business 52.7 150.0 277.2r 253.2r 380.6r 520.3 532.5 570.3 470.7 524.6 682.6 431.1 19 Corporate 46.9 142.3r 243.7r 164.6r 297.0r 425.0 426.9 467.4 365.8 413.7 574.4 320.6 20 Nonfarm noncorporate 3.2 3.3 30.6 83.8 77.4 86.6 97.1 95.4 97.6 103.3 101.6 111.2 71 2.6 4.4 2.9 4.8 6.2 8.6 8.4 7.5 7.3 7.5 6.6 -.7 22 State and local government 66.2 -46.2 -51.5 -6.8 56.1 86.2 94.2 82.0 70.0 75.1 87.4 35.7 23 Foreign net borrowing in United States 69.8 — 13.9r 71.1 77.2' 57.6r 44.8 95.0 97.9 -19.6 -38.9 17.3 -43.3 24 Commercial paper -9.6 -26.1 13.5 11.3 3.7 .7 55.3 -25.5 6.2 -4.7 18.3 -27.1 ?5 Bonds 82.9 12.2 49.7 55.8 47.2r 34.2 42.5 119.2 -27.2 -34.2 .9 -19.1 26 Bank loans n.e.c .7 1.4 8.5 9.1 8.5 15.7 5.2 8.4 3.6 9.8 .9 5.7 27 Other loans and advances -4.2 — 1.4r -.5 1.0r — 1.8r -5.8 -8.0 -4.2 -2.2 -9.7 -2.8 -2.7 28 Total domestic plus foreign 654.2r 561.9r 791.5r 820.3r 842.9r 956.8 1,170.4 1,140.3 879.5 1,034.0 1,265.4 822.4 Financial sectors 29 Total net borrowing by financial sectors 294.4 468.4 453.9r 548.9r 652.2r 961.5 931.3 988.9 1,056.3 1,298.7 1,216.0 1,014.1 By instrument 30 Federal government-related 165.3 287.5 204.1 231.5 212.8 290.9 249.2 405.4 555.8 673.3 592.3 579.3 31 Government-sponsored enterprise securities 80.6 176.9 105.9 90.4 98.4 157.9 142.5 166.4 294.0 510.5 193.0 304.7 32 Mortgage pool securities 84.7 115.4 98.2 141.1 114.5r 133.0 106.7 239.0 261.7 162.8 399.3 274.6 33 Loans from U.S. government .0 -4.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 129.1 180.9 249.8r 317.5r 439.4r 670.7 682.1 583.5 500.5 625.4 623.7 434.8 35 Open market paper -5.5 40.5 42.7 92.2 166.7 244.7 236.7 135.6 141.0 130.7 78.3 57.8 36 Corporate bonds 123.1 121.8 195.9 176.9 209.0 348.8 346.3 361.8 177.4 281.9 492.5 260.8 37 Bank loans n.e.c -14.4 -13.7 2.5r 12.6r 13.2r -4.7 57.3 -9.7 60.2 12.4 -8.8 10.5 38 Other loans and advances 22.4 22.6 3.4 27.9 35.6 61.7 32.7 76.0 82.3 169.9 41.6 117.9 39 Mortgages 3.6 9.8 5.3 7.9 14.9 20.1 9.1 19.9 39.6 30.6 20.1 -12.3 By borrowing sector 40 Commercial banking 13.4 20.1 22.5 13.0 46.1 61.4 82.8 80.8 61.7 66.3 31.1 6611..66 41 Savings institutions 11.3 12.8 2.6 25.5 19.7 41.7 10.6 31.2 63.7 103.2 58.0 58.6 42 Credit unions .2 .2 -.1 .1 .1 .3 .5 .2 1.0 .4 1.5 1.4 43 Life insurance companies .2 .3 -.1 1.1 .2 -.3 .0 -.6 1.6 1.8 3.3 3.0 44 Government-sponsored enterprises 80.6 172.1 105.9 90.4 98.4 157.9 142.5 166.4 294.0 510.5 193.0 304.7 45 Federally related mortgage pools 84.7 115.4 98.2 141.1 114.5r 133.0 106.7 239.0 261.7 162.8 399.3 274.6 46 Issuers of asset-backed securities (ABSs) 85.4 76.5 142.4 153.9 200.7 374.8 283.0 352.4 294.2 335.7 302.2 318.3 47 Finance companies -1.4 48.7 50.2 45.9 48.7 70.7 74.6 91.9 -12.0 17.8 71.2 88.4 48 Mortgage companies .0 -11.5 -2.2r 4.1r -4.6r -46.8 29.4 -28.2 2.3 3.0 -4.6 5.1 49 Real estate investment trusts (REITs) 1.7 10.2 4.5 11.9 39.6 66.0 63.1 64.4 79.3 44.0 25.6 -19.7 50 Brokers and dealers 12.0 .5 -5.0 -2.0 8.1 7.0 -1.0 20.0 -2.6 12.4 -31.1 -18.3 51 Funding corporations 6.3 23.1 34.9 64.1 80.7 95.9 139.2 -28.6 11.2 40.9 166.5 -63.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A38 Domestic Nonfinancial Statistics • November 1999 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1997 1998' 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999933 11999944 11999955 11999966 11999977 Q4r Q1 Q2 Q3 Q4 Qlr Q2 All sectors 52 Total net borrowing, all sectors 948.6r l,030.3r 1,245.4' l,369.2r l,495.1r 1,918.3 2,101.7 2,129.3 1,935.8 2,332.7 2,481.3 1,836.4 53 Open market paper -5.1 35.7 74.3 102.6 184.1 258.2 343.0 113.8 232.7 83.0 161.1 34.1 54 U.S. government securities 421.4 448.1 348.5 376.5 235.9 285.3 234.7 377.1 442.3 619.1 517.1 467.1 55 Municipal securities 74.8 -35.9 -48.2 2.6 71.4 99.9 113.5 101.3 82.9 89.6 100.7 48.0 56 Corporate and foreign bonds 281.2 157.3 336.7r 348.9r 406.7r 546.5 667.6 775.8 258.2 440.9 767.4 502.5 57 Bank loans n.e.c -7.2 62.9 114.7 92.1 128.2 189.2 97.6 167.9 171.6 143.0 62.1 38.0 58 Other loans and advances -.8 50.4r 70. lr 62.5r 102.8r 197.4 101.0 112.5 157.8 262.7 152.9 110.0 59 Mortgages 126.0r 186.8r 210.5r 295.3r 313.3r 298.7 485.5 418.7 510.7 624.4 593.5 583.5 60 Consumer credit 58.4r 124.9 138.9 88.8 52.5 43.1 58.9 62.1 79.6 69.9 126.6 53.2 Funds raised through mutual funds and corporate equities 61 Total net issues 429.7 125.2 144.3 228.9 188.4r 160.9 213.5 268.5 -147.2 18.3 140.6 6.4 62 Corporate equities 137.7 24.6 -3.1 -8.6r -76.7r -100.0 -108.8 -109.3 -320.6 -206.5 -114.7 -241.5 63 Nonfinancial corporations 21.3 -44.9 -58.3 -69.5 -114.4 -143.3 -139.2 -129.1 -308.4 -491.3 -65.7 -354.0 64 Foreign shares purchased by U.S. residents 63.4 48.1 50.4 60.0 42.0r 1.7 14.0 12.3 -32.8 317.4 -33.4 124.7 65 Financial corporations 53.0 21.4 4.8 .8 -4.3r 41.6 16.4 7.5 20.5 -32.7 -15.6 -12.2 66 Mutual fund shares 292.0 100.6 147.4 237.6 265.1 260.9 322.3 377.8 173.4 224.8 255.3 247.9 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Flow of Funds A3 9 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1997 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999933 11999944 11999955 11999966 11999977 Q4 QL Q2 Q3 Q4 QL Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 948.6 1,030.3 1,245.4 1,369.2 1,495.1 1,918.3 2,101.7 2,129.3 1,935.8 2,332.7 2,481.3 1,836.4 7 Domestic nonfederal nonfinancial sectors 30.0 231.2 -90.0 22.5 -88.9 48.1 -49.7 512.7 94.9 -318.3 307.5 347.9 Household -10.6 268.0 5.5 61.4 -86.2 7.5 -64.2 385.2 -44.8 -424.1 244.9 255.1 4 Nonfinancial corporate business 9.1 17.7 -8.8 -.8 -2.3 -13.0 8.4 -46.9 14.0 14.1 10.4 39.5 5 Nonfarm noncorporate business -1.1 .6 4.7 -4.3 -.6 -.6 .0 .0 .0 .0 .0 .0 6 State and local governments 32.6 -55.0 -91.4 -33.7 .1 54.2 6.1 174.3 125.7 91.7 52.2 53.3 7 Federal government -18.4 -27.4 -.2 -7.4 5.1 9.2 15.7 12.9 13.8 11.7 17.5 6.5 8 Rest of the world 129.3 132.3 273.9 414.4 310.7 203.9 223.8 321.8 60.8 390.7 213.3 51.6 9 Financial sectors 807.8 694.1 1,061.7 939.7 1,268.1 1,657.1 1,912.0 1,281.9 1,766.3 2,248.6 1,943.0 1,430.5 10 Monetary authority 36.2 31.5 12.7 12.3 38.3 54.3 27.6 11.5 41.6 3.5 71.8 62.4 11 Commercial banking 142.2 163.4 265.9 187.5 324.3 447.4 306.7 132.7 250.1 531.5 68.9 135.0 1? U.S.-chartered banks 149.6 148.1 186.5 119.6 274.9 357.6 268.4 130.0 309.2 540.2 134.1 231.5 13 Foreign banking offices in United States -9.8 11.2 75.4 63.3 40.2 69.3 17.5 15.2 -68.1 -12.1 -54.9 -105.8 14 Bank holding companies .0 .9 -.3 3.9 5.4 19.4 15.3 -17.6 6.0 -7.4 -6.0 ..11 15 Banks in U.S.-affiliated areas 2.4 3.3 4.2 .7 3.7 1.1 5.5 5.1 2.9 10.7 -4.4 99..22 16 Savings institutions -23.3 6.7 -7.6 19.9 -4.7 8.9 11.8 2.1 17.9 113.3 102.7 88.8 17 Credit unions 21.7 28.1 16.2 25.5 16.8 6.5 16.1 22.7 21.0 16.0 37.7 34.7 18 Bank personal trusts and estates 9.5 7.1 -8.3 -7.7 7.6 8.8 2.4 3.1 2.0 3.9 3.1 2.2 19 Life insurance companies 100.4 72.0 100.0 69.6 94.3 34.1 92.1 63.4 65.6 86.0 72.6 89.0 20 Other insurance companies 27.7 24.9 21.5 22.5 25.2 34.7 23.4 -1.5 -7.7 67.5 -19.7 5.0 21 Private pension funds 50.2 46.1 56.0 52.3 65.5 79.5 74.5 130.1 95.6 174.4 60.5 150.0 22 State and local government retirement funds 24.7 30.9 33.6 37.3 63.8 42.7 67.4 78.4 65.6 48.5 74.3 37.4 73 Money market mutual funds 20.4 30.0 86.5 88.8 87.5 141.8 159.3 208.1 255.5 353.1 227.6 -92.6 74 Mutual funds 159.5 -7.1 52.5 48.9 80.9 64.8 156.4 146.4 92.9 103.5 101.5 98.8 75 Closed-end funds 20.0 -3.7 10.5 4.7 -2.9 -2.9 4.5 4.5 4.5 4.5 4.4 4.4 26 Government-sponsored enterprises 87.8 117.8 86.7 84.2 94.3 158.1 198.3 150.6 264.7 429.5 157.2 259.5 27 Federally related mortgage pools 84.7 115.4 98.2 141.1 114.5 133.0 106.7 239.0 261.7 162.8 399.3 274.6 78 Asset-backed securities issuers (ABSs) 82.8 69.4 120.6 123.6 162.3 321.9 223.9 321.4 248.7 312.7 284.6 301.5 79 Finance companies -20.9 48.3 49.9 18.4 21.9 -19.7 28.7 24.0 79.5 75.3 92.2 79.6 30 Mortgage companies .0 -24.0 -3.4 8.2 -9.1 -93.6 58.8 -56.4 4.5 6.0 -9.1 10.2 31 Real estate investment trusts (REITs) .4 -.7 1.4 4.4 20.2 38.9 25.6 6.1 -11.3 -40.8 1.7 -2.2 37 Brokers and dealers 14.8 -44.2 90.1 -15.7 14.9 71.7 245.8 -183.1 77.0 -209.1 184.5 -204.5 33 Funding corporations -31.0 -17.8 -21.2 14.0 52.7 126.2 82.0 -21.4 -63.3 6.4 27.1 96.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 948.6 1,030.3 1,245.4 1,369.2 1,495.1 1,918.3 2,101.7 2,129.3 1,935.8 2,332.7 2,481.3 1,836.4 Other financial sources 35 Official foreign exchange .8 -5.8 8.8 -6.3 .7 17.5 1.0 8.1 8.9 88..66 --1144..00 --55..44 36 Special drawing rights certificates .0 .0 2.2 -.5 -.5 .0 .0 .0 .0 .0 -4.0 .0 37 Treasury currency .4 .7 .6 .1 .0 -1.9 .3 .2 1.7 -2.3 .0 .7 38 Foreign deposits -18.5 52.9 35.3 85.9 106.8 100.6 -46.5 92.9 84.9 -131.9 127.7 114.5 39 Net interbank transactions 50.5 89.8 10.0 -51.6 -19.7 54.3 -95.2 39.8 44.2 -122.9 49.1 68.2 40 Checkable deposits and currency 117.3 -9.7 -12.7 15.8 41.5 72.1 52.6 90.1 -24.9 72.8 61.7 10.3 41 Small time and savings deposits -70.3 -39.9 96.6 97.2 97.1 136.7 99.0 84.9 144.7 281.2 -63.8 104.0 47 Large time deposits -23.5 19.6 65.6 114.0 122.5 59.2 187.8 -5.6 81.8 104.4 -5.9 42.6 43 Money market fund shares 20.2 43.3 142.3 145.8 157.6 149.9 213.6 247.2 367.9 313.1 204.9 100.5 44 Security repurchase agreements 71.3 78.2 110.5 41.4 120.9 103.3 250.3 -100.8 231.1 -170.3 408.2 -65.6 45 Corporate equities 137.7 24.6 -3.1 -8.6 -76.7 -100.0 -108.8 -109.3 -320.6 -206.5 -114.7 -241.5 46 Mutual fund shares 292.0 100.6 147.4 237.6 265.1 260.9 322.3 377.8 173.4 224.8 255.3 247.9 47 Trade payables 52.2 94.0 101.6 86.1 96.2 122.6 108.3 -57.4 34.6 -86.8 155.5 98.4 48 Security credit 61.4 -.1 26.7 52.4 111.0 128.0 159.3 134.3 167.0 -27.2 -86.9 89.3 49 Life insurance reserves 37.1 35.5 45.8 44.5 54.3 37.4 49.3 53.3 51.7 59.0 40.8 65.9 50 Pension fund reserves 268.0 254.7 235.1 246.9 304.0 304.1 294.7 272.9 279.5 313.8 284.3 316.4 51 Taxes payable 11.4 2.6 6.2 16.0 16.8 3.9 12.2 .9 27.3 11.7 -10.3 27.2 52 Investment in bank personal trusts .9 17.8 4.0 -8.6 75.0 78.4 50.3 57.5 47.8 67.1 64.1 53.0 53 Noncorporate proprietors' equity 24.1 53.6 60.3 -.6 6.1 -43.5 -11.0 -5.4 -61.2 3.2 -2.5 12.3 54 Miscellaneous 356.0 245.6 444.6 498.3 513.3 222.2 980.1 376.5 712.6 702.0 238.7 1,092.8 55 Total financial sources 2,337.6 2,088.3 2,773.2 2,975.1 3,487.1 3,624.1 4,621.2 3,687.3 3,988.1 3,746.3 4,069.6 3,968.0 Liabilities not identified as assets (—) 56 Treasury currency -.2 -.2 -.5 -.9 -.6 -2.4 -.2 -.3 1.1 --33..44 -1.5 -.4 .57 Foreign deposits -5.7 43.0 25.1 59.6 106.8 145.5 -95.7 119.9 69.9 -156.5 62.0 73.5 58 Net interbank liabilities 4.2 -2.7 -3.1 -3.3 -19.9 -38.1 35.1 8.9 22.3 -52.8 58.7 -1.7 59 Security repurchase agreements 50.5 67.7 20.2 4.5 62.3 185.1 120.8 -170.0 110.2 .2 362.2 -14.8 60 Taxes payable 15.8 16.6 21.1 20.4 18.8 14.4 9.4 2.8 24.2 17.4 -22.4 -15.0 61 Miscellaneous -158.5 -160.1 -221.4 -66.9 -254.9 -640.7 61.0 -225.9 -106.7 -43.9 -568.0 -390.0 Floats not included in assets (—) 62 Federal government checkable deposits -1.5 -4.8 -6.0 .5 -2.7 -10.0 8.3 -44.4 32.4 14.0 -1.8 -41.4 63 Other checkable deposits -1.3 -2.8 -3.8 -4.0 -3.9 -5.0 -4.0 -2.9 -3.6 -1.8 -1.9 -1.0 64 Trade credit -4.0 1.5 -11.7 -49.9 3.6 15.7 41.9 -150.7 -94.5 -31.1 55.7 -6.9 65 Total identified to sectors as assets 2,438.2 2,130.1 2,953.4 3,015.2 3,577.6 3,959.6 4,444.8 4,150.0 3,932.8 4,004.0 4,126.5 4,365.7 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. 1 and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A40 Domestic Nonfinancial Statistics • November 1999 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1997 1998 1999 11999977 Q4 Ql' Q2 Q3 Q4 Ql' Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 13,013.9r 13,734.3r 14,477.4r 15,261.1r 15,261.1' 15,522.2 15,742.1' 15,956.2' 16,283.6' 16,588.0 16,758.7 By sector and instrument 2 Federal government 3,492.3 3,636.7 3,781.8 3,804.9 3,804.9 3,830.8 3,749.0 3,720.2 3,752.2 3,759.7 3,651.7 3 Treasury securities 3,465.6 3,608.5 3,755.1 3,778.3 3,778.3 3,804.8 3,723.4 3,694.7 3,723.7 3,731.6 3,623.4 4 Budget agency securities and mortgages 26.7 28.2 26.6 26.5 26.5 25.9 25.6 25.5 28.5 28.1 28.3 5 Nonfederal 9,521.6r 10,097.6r 10,695.6' 11,456.3' 11,456.3' 11,691.4 11,993.2' 12,236.0' 12,531.4' 12,828.3 13,107.0 By instrument 6 Commercial paper 139.2 157.4 156.4 168.6 168.6 193.1 202.5 216.9 193.0 223.9 232.4 1 Municipal securities and loans 1,341.7 1.293.5 1,296.0 1,367.5 1,367.5 1,397.1 1,429.3 1,439.9 1,464.3 1,491.0 1,510.0 8 Corporate bonds 1,253.0 1,344. lr 1,460.4' 1,610.9' 1,610.9' 1,680.6 1,754.3' 1,781.3' 1,829.6' 1,898.1 1,963.3 y Bank loans n.e.c 759.9 863.6r 934.1' 1,040.5' 1,040.5' 1,047.9 1,097.6' 1,120.6' 1,148.8' 1,165.2 1,178.4 10 Other loans and advances 669.6 736.9 770.4' 839.5 839.5 863.5 873.1' 886.8' 913.8' 947.5 945.8 11 Mortgages 4.374.2r 4,579.4r 4,866.8' 5,165.2' 5,165.2' 5,273.3 5,379.7' 5,504.0' 5,650.3' 5,784.1 5,939.2 12 Home 3,330.0r 3,509.8' 3,719.0' 3,954.8' 3,954.8' 4,037.9 4,116.4' 4,216.4' 4,321.1' 4,413.8 4,526.0 13 Multifamily residential 261.5 269.1 284.3 295.0' 295.0' 300.4 305.7' 309.7' 317.4' 326.6 335.8 14 Commercial 699.8 716.0 776.4' 825.1' 825.1' 843.6 864.6' 883.6' 915.3' 946.3 977.7 15 Farm 83.0 84.6 87.1 90.3 90.3 91.3 93.0' 94.4' 96.5' 97.4 99.7 16 Consumer credit 983.9 1,122.8 1,211.6 1,264.1 1,264.1 1,236.0 1,256.8 1,286.6 1,331.7 1,318.6 1,338.0 By borrowing sector 17 Household 4,427.0r 4,782.2r 5,105.1' 5,433.3' 5,433.3' 5,494.5 5,613.2' 5,746.1' 5,903.6' 5,985.9 6,128.1 18 Nonfinancial business 3,972.9 4,245.2' 4,527.1' 4,903.5' 4,903.5' 5,052.6 5,209.2' 5,311.1' 5,428.0' 5,619.2 5,740.7 19 Corporate 2,708.9 2,947.7' 3,141.0' 3,433.8' 3,433.8' 3,559.4 3,686.4' 3,762.5' 3,852.2' 4,019.2 4,107.9 20 Nonfarm noncorporate 1,121.8 1,152.4 1,236.1 1,313.6 1,313.6 1,337.9 1,361.8 1,385.5 1,411.9 1,437.6 1,466.7 21 Farm 142.2 145.1 149.9 156.1 156.1 155.3 161.0' 163.1' 163.8' 162.4 166.2 22 State and local government 1,121.7 1,070.2 1,063.4 1,119.5 1,119.5 1,144.3 1,170.8 1,178.8 1,199.8 1,223.2 1,238.2 23 Foreign credit market debt held in United States 370.3r 441.4r 518.7r 570.1' 570.1r 591.6 617.1' 612.8' 603.7' 607.8 596.5 24 Commercial paper 42.7 56.2 67.5 65.1 65.1 76.7 71.4 74.0 72.9 77.2 70.1 25 Bonds 242.3 291.9 347.7 394.9' 394.9' 405.6 435.4' 428.6' 420.0' 420.2 415.4 26 Bank loans n.e.c 26.1 34.6 43.7 52.1 52.1 53.4 55.5 56.4 58.9 59.1 60.5 27 Other loans and advances 59.3r 58.8' 59.8' 58.0 58.0 55.9 54.8 53.8 52.0 51.3 50.4 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 13,384.2r 14,175.8r 14,996.0r 15,831.2' 15,831.2' 16,113.8 16,359.2' 16,568.9' 16,887.3' 17,195.8 17,355.2 Financial sectors 29 Total credit market debt owed by financial sectors 3,822.2 4,278.8r 4,827.7r 5,446.8r 5,446.8' 5,670.1 5,926.8' 6,195.5' 6,515.6' 6,809.7 7,073.6 By instrument 30 Federal government-related 2,172.7 2,376.8 2,608.3 2,821.1' 2,821.1' 2,878.0 2,981.4' 3,121.7' 3,292.0 3,434.1 3,580.8 31 Government-sponsored enterprise securities 700.6 806.5 896.9 995.3 995.3 1,030.9 1,072.5 1,146.0 1,273.6 1,321.8 1,398.0 32 Mortgage pool securities 1,472.1 1,570.3 1,711.4 1,825.8 1,825.8 1,847.1 1,908.9' 1,975.7' 2,018.4 2,112.3 2,182.8 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 1,649.5 1,901.9' 2,219.4' 2,625.7' 2,625.7' 2,792.1 2,945.4' 3,073.8' 3,223.6' 3,375.6 3,492.7 35 Open market paper 441.6 486.9 579.1 745.7 745.7 804.9 838.9 874.2 906.7 926.4 940.9 36 Corporate bonds 1,008.8 1,204.7 1,381.5 1,557.5 1,557.5 1,640.8 1,738.7 1,786.2 1,849.4 1,969.3 2,042.9 37 Bank loans n.e.c 48.9 51.4' 64.0' 77.2' 77.2' 90.6 88.2' 103.2' 107.2' 104.1 106.8 38 Other loans and advances 131.6 135.0 162.9 198.5 198.5 206.6 225.6 246.2 288.7 299.1 328.6 39 Mortgages 18.7 24.1 31.9 46.8 46.8 49.1 54.1 64.0 71.6 76.6 73.6 By borrowing sector 40 Commercial banks 94.5 102.6 113.6 140.6 140.6 148.7 159.6 169.6 188.6 187.5 202.7 41 Bank holding companies 133.6 148.0 150.0 168.6 168.6 181.2 190.5 196.1 193.5 202.6 202.7 42 Savings institutions 112.4 115.0 140.5 160.3 160.3 162.9 170.7 186.6 212.4 226.9 241.6 43 Credit unions .5 .4 .4 .6 .6 .7 .8 1.0 1.1 1.5 1.8 44 Life insurance companies .6 .5 1.6 1.8 1.8 1.8 1.6 2.0 2.5 3.3 4.0 45 Government-sponsored enterprises 700.6 806.5 896.9 995.3 995.3 1,030.9 1,072.5 1,146.0 1,273.6 1,321.8 1,398.0 46 Federally related mortgage pools 1,472.1 1,570.3 1,711.4 1,825.8 1,825.8 1,847.1 1,908.9' 1,975.7' 2,018.4 2,112.3 2,182.8 47 Issuers of asset-backed securities (ABSs) 570.1 712.5 866.4 1,078.2 1,078.2 1,142.9 1,230.4 1,307.0 1,394.6 1,463.8 1,542.9 48 Brokers and dealers 34.3 29.3 27.3 35.3 35.3 35.1 40.1 39.4 42.5 34.8 30.2 49 Finance companies 433.7 483.9 529.8 554.5 554.5 571.9 596.9 589.4 597.5 614.4 639.2 50 Mortgage companies 18.7 16.5' 20.6' 16.0' 16.01 23.4 16.3' 16.9' 17.7' 16.5 17.8 51 Real estate investment trusts (REITs) 40.0 44.6 56.5 96.1 96.1 111.9 128.0 147.8 158.8 165.2 160.3 52 Funding corporations 211.0 248.6 312.7 373.7 373.7 411.6 410.5 417.9 414.4 459.1 449.6 All sectors 53 Total credit market debt, domestic and foreign . .. 17,206.4r 18,454.5r 19,823.7' 21,278.1r 21,278.1' 21,783.9 22,286.0' 22,764.5' 23,402.9' 24,005.5 24,428.7 54 Open market paper 623.5 700.4 803.0 979.4 979.4 1,074.8 1,112.7 1,165.1 1,172.6 1,227.6 1,243.3 55 U.S. government securities 5,665.0 6,013.6 6,390.0 6.626.0' 6,626.0' 6,708.7 6,730.3' 6,841.9' 7,044.3' 7,193.8 7,232.5 56 Municipal securities 1,341.7 1,293.5 1,296.0 1.367.5 1,367.5 1,397.1 1,429.3 1,439.9 1,464.3 1,491.0 1,510.0 57 Corporate and foreign bonds 2,504.0 2,840.7' 3,189.6' 3,563.3' 3,563.3' 3,727.0 3,928.3' 3,996.0' 4,098.9' 4,287.6 4,421.6 58 Bank loans n.e.c 834.9 949.6 1,041.7 1,169.8 1,169.8 1,191.9 1,241.3 1,280.3 1,314.9' 1,328.3 1,345.6 59 Other loans and advances 860.5r 930.6' 993.1' 1,095.9 1,095.9 1,126.1 1,153.6' 1,186.8' 1,254.4' 1,297.8 1,324.8 60 Mortgages 4,393.0r 4,603.4' 4,898.7' 5,212.0' 5,212.0' 5,322.4 5,433.7' 5,568.0' 5,721.9' 5,860.7 6,012.7 61 Consumer credit 983.9 1,122.8 1,211.6 1,264.1 1,264.1 1,236.0 1,256.8 1,286.6 1,331.7 1,318.6 1,338.0 ]. Data in this table also appear in the Board's Z. ] (780) quarterly statistica lrelease, 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 1997 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 Q4 Ql Q2 Q3 Q4 Ql Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 17,206.4 18,454.5 19,823.7 21,278.1 21,278.1 21,783.9 22,286.0 22,764.5 23,402.9 24,005.5 24,428.7 2 Domestic nonfederal nonfinancial sectors 2,988.8 2,856.8 2,924.6 2,781.4 2,781.4 2,761.2 2,847.0 2,876.6 2,813.0 2,875.4 2,915.9 Household 1,932.1 1,895.5 2,011.6 1,871.1 1,871.1 1,868.2 1,919.2 1,913.4 1,805.8 1,874.9 1,889.2 4 Nonfinancial corporate business 289.2 280.4 270.2 268.0 268.0 249.6 238.7 244.7 265.4 246.1 257.0 Nonfarm noncorporate business 37.6 42.3 38.0 37.4 37.4 37.4 37.4 37.4 37.4 37.4 37.4 State and local governments 729.9 638.6 604.8 605.0 605.0 606.0 651.6 681.1 704.4 717.1 732.3 7 Federal government 202.9 202.7 195.3 200.4 200.4 204.3 207.5 210.9 213.9 218.3 219.9 8 Rest of the world 1,216.0 1,531.1 1,926.6 2,256.8 2,256.8 2,317.1 2,396.0 2,412.2 2,534.3 2,591.8 2,603.3 9 Financial sectors 12,798.8 13,863.9 14,777.2 16,039.5 16,039.5 16,501.3 16,835.5 17,264.8 17,841.7 18,320.0 18,689.7 10 Monetary authority 368.2 380.8 393.1 431.4 431.4 433.8 440.3 446.5 452.5 466.0 485.1 11 Commercial banking 3,254.3 3,520.1 3,707.7 4,031.9 4,031.9 4,093.4 4,136.4 4,195.7 4,335.7 4,338.4 4,383.3 12 U.S.-chartered banks 2,869.6 3,056.1 3,175.8 3,450.7 3,450.7 3,505.1 3,543.6 3,616.2 3,761.2 3,782.9 3,847.6 13 Foreign banking offices in United States 337.1 412.6 475.8 516.1 516.1 517.9 525.6 510.1 504.2 487.8 465.7 14 Bank holding companies 18.4 18.0 22.0 27.4 27.4 31.2 26.8 28.3 26.5 25.0 25.0 15 Banks in U.S.-affiliated areas 29.2 33.4 34.1 37.8 37.8 39.2 40.4 41.1 43.8 42.7 45.0 16 Savings institutions 920.8 913.3 933.2 928.5 928.5 931.3 930.8 939.3 964.8 990.8 1,011.4 17 Credit unions 246.8 263.0 288.5 305.3 305.3 306.7 315.1 320.5 324.2 331.0 342.5 18 Bank personal trusts and estates 248.0 239.7 232.0 239.5 239.5 240.1 240.9 241.4 242.4 243.1 243.7 19 Life insurance companies 1,487.5 1,587.5 1,657.0 1,751.3 1,751.3 1,777.3 1,793.2 1,810.6 1,828.0 1,853.7 1,876.0 20 Other insurance companies 446.4 468.7 491.2 515.3 515.3 521.1 520.8 518.9 535.7 530.8 532.1 71 Private pension funds 660.9 716.9 769.2 834.7 834.7 853.4 885.9 909.8 953.4 968.5 1,006.0 7.7 State and local government retirement funds 497.4 531.0 568.2 632.0 632.0 648.9 668.5 684.9 697.0 715.6 724.9 73 Money market mutual funds 459.0 545.5 634.3 721.9 721.9 775.0 815.9 869.9 965.9 1,036.2 1,001.8 74 Mutual funds 718.8 771.3 820.2 901.1 901.1 940.0 979.1 1,005.9 1,025.9 1,050.5 1,078.1 75 Closed-end funds 86.0 96.4 101.1 98.3 98.3 99.4 100.5 101.7 102.8 103.9 105.0 76 Government-sponsored enterprises 663.3 750.0 807.9 902.2 902.2 951.4 989.4 1,055.4 1,163.0 1,201.9 1,267.1 27 Federally related mortgage pools 1,472.1 1,570.3 1,711.4 1,825.8 1,825.8 1,847.1 1,908.9 1,975.7 2,018.4 2,112.3 2,182.8 78 Asset-backed securities issuers (ABSs) 532.8 653.4 777.0 939.3 939.3 989.2 1,068.9 1,134.2 1,216.0 1,280.8 1,355.7 79 Finance companies 476.2 526.2 544.5 566.4 566.4 572.0 579.0 592.7 618.4 639.9 660.9 30 Mortgage companies 36.5 33.0 41.2 32.1 32.1 46.8 32.7 33.8 35.3 33.0 35.6 31 Real estate investment trusts (REITs) 24.6 26.0 30.4 50.6 50.6 57.0 58.5 55.7 45.5 45.9 45.3 37 Brokers and dealers 93.3 183.4 167.7 182.6 182.6 244.0 198.3 217.5 165.2 211.4 160.2 33 Funding corporations 106.0 87.4 101.4 149.4 149.4 173.5 172.6 155.1 151.7 166.4 192.2 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 17,206.4 18,454.5 19,823.7 21,278.1 21,278.1 21,783.9 22,286.0 22,764.5 23,402.9 24,005.5 24,428.7 Other liabilities .35 Official foreign exchange 53.2 63.7 53.7 48.9 48.9 48.2 50.1 54.5 60.1 53.6 50.9 36 Special drawing rights certificates 8.0 10.2 9.7 9.2 9.2 9.2 9.2 9.2 9.2 8.2 8.2 37 Treasury currency 17.6 18.2 18.3 18.3 18.3 18.4 18.4 18.8 18.3 18.3 18.5 38 Foreign deposits 373.9 418.8 516.1 618.8 618.8 607.2 630.4 651.7 639.9 671.8 700.4 39 Net interbank liabilities 280.1 290.7 240.8 219.4 219.4 179.6 189.1 198.7 187.7 180.5 196.4 40 Checkable deposits and currency 1,242.0 1,229.3 1,245.1 1,286.6 1,286.6 1,259.2 1,320.7 1,282.3 1,334.2 1,311.5 1,354.3 41 Small time and savings deposits 2,183.2 2,279.7 2,377.0 2,474.1 2,474.1 2,525.4 2,531.0 2,553.8 2,626.5 2,638.6 2,646.6 47 Large time deposits 411.2 476.9 590.9 713.4 713.4 760.9 754.0 776.5 805.5 804.3 809.0 43 Money market fund shares 602.9 745.3 891.1 1,048.7 1,048.7 1,130.7 1,153.7 1,249.7 1,334.2 1,416.0 1,398.1 44 Security repurchase agreements 549.5 660.0 701.5 822.4 822.4 889.3 861.5 918.9 875.0 980.3 961.4 45 Mutual fund shares 1,477.3 1,852.8 2,342.4 2,989.4 2,989.4 3,339.3 3,438.4 3,137.3 3,610.5 3,760.8 4,029.9 46 Security credit 279.0 305.7 358.1 469.1 469.1 505.3 540.6 579.0 577.4 552.7 576.7 47 Life insurance reserves 520.3 566.2 610.6 665.0 665.0 677.3 690.6 703.5 718.3 730.9 747.4 48 Pension fund reserves 4,948.1 5,767.8 6,642.5 7,894.4 7,894.4 8,583.1 8,730.8 8,194.6 9,160.7 9,335.8 9,770.1 49 Trade payables 1,140.6 1,242.3 1,328.4 1,424.6 1,424.6 1,419.2 1,405.0 1,418.3 1,424.3 1,430.4 1,454.6 50 Taxes payable 101.4 107.6 123.6 140.4 140.4 151.7 144.4 154.7 153.4 159.6 158.4 51 Investment in bank personal trusts 699.4 803.0 871.7 1,082.8 1,082.8 1,179.5 1,204.9 1,118.9 1,274.2 1,317.0 1,402.7 52 Miscellaneous 5,287.2 5,634.7 6,098.8 6,663.5 6,663.5 6,737.3 6,807.2 7,024.1 7,094.4 7,087.4 7,184.8 53 Total liabilities 37,381.6 40,927.2 44,843.8 49,867.0 49,867.0 51,804.7 52,765.9 52,809.1 55,306.8 56,463.3 57,897.0 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.1 22.1 21.4 21.1 21.1 21.2 21.0 21.2 21.6 20.7 20.8 55 Corporate equities 6,237.9 8,331.3 10,062.4 12,776.0 12,776.0 14,397.6 14,556.1 12,758.4 15,437.7 15,970.3 17,137.5 56 Household equity in noncorporate business 3,410.5 3,658.3 3,864.5 4,213.4 4,213.4 4,039.4 4,255.1 4,265.5 4,288.4 4,293.4 4,257.7 Liabilities not identified as assets (—) 57 Treasury currency —5.4 -5.8 -6.7 -7.3 -7.3 -7.4 -7.4 -7.2 -8.0 -8.4 -8.5 58 Foreign deposits 325.4 360.2 431.4 534.0 534.0 510.1 540.1 557.6 539.7 555.1 573.5 59 Net interbank transactions -6.5 -9.0 -10.6 -32.2 -32.2 -21.2 -17.1 -15.4 -27.0 -11.3 -10.5 60 Security repurchase agreements 66.2 86.4 90.9 153.1 153.1 187.4 140.9 175.2 168.4 263.0 255.6 61 Taxes payable 48.8 62.4 76.7 93.5 93.5 89.6 95.6 101.9 103.9 90.6 108.2 62 Miscellaneous -948.1 -1,350.8 -1,714.9 -2,087.0 -2,087.0 -2,259.2 -2,311.2 -2,449.9 -2,719.9 -2,953.5 -2,998.9 Floats not included in assets (—) 6.3 Federal government checkable deposits 3.4 3.1 -1.6 -8.1 -8.1 -10.4 -16.1 -12.0 -3.9 -7.2 -12.4 64 Other checkable deposits 38.0 34.2 30.1 26.2 26.2 21.4 24.2 15.7 23.1 18.9 22.1 65 Trade credit -245.9 -257.5 -307.7 -314.5 -314.5 -358.1 -412.2 -440.1 -373.7 -415.3 -432.3 66 Total identified to sectors as assets 47,775.0 54,015.9 60,204.6 68,519.7 68,519.7 72,110.7 73,561.4 71,928.4 77,351.9 79,215.7 81,816.2 1. Data in this table also appear in the Board's Z.l (780) quarterly statistica lrelease, tables 2. Excludes corporate equities and mutual fund shares. L.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A42 Domestic Nonfinancial Statistics • November 1999 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992= 100, except as noted 1998 1999 MMeeaassuurree 11999966 11999977 11999988 Dec. Jan. Feb. Mar. Apr. May June July Aug.P 1 Industrial production1 119.5 126.8 131.3 132.3 132.3 132.5 133.3 133.7 134.0 134.2 135.2 135.6 Market groupings 2 Products, total 114.4 119.6 123.5 124.4 124.5 124.6 125.2 125.6 125.8 125.6' 126.0 126.4 3 Final, total 115.5 121.1 125.4 125.9 125.8 125.9 126.5 126.8 127.2 127.1' 127.4 128.2 4 Consumer goods 111.3 114.1 115.2 114.9 115.2 115.3 115.3 115.5 115.6' 115.9 115.7 116.6 5 Equipment 122.7 133.9 144.2 145.6 145.0 145.1 146.7 147.2 148.0' 147.3' 148.6 149.1 6 Intermediate 110.9 115.2 118.0 119.8 120.3 120.4 121.0 121.5 121.4' 121.0r 121.5 121.0 7 Materials 127.8 138.2 144.0 145.2 144.9 145.3 146.7 146.9 147.3 148.2 150.4 150.8 Industry groupings 8 Manufacturing 121.4 129.7 135.1 136.7 136.4 136.9 137.5 138.0 138.4 138.5' 139.3 139.9 9 Capacity utilization, manufacturing (percent)2. . 81.4 82.0 80.8 80.0 79.5 79.5 79.5 79.6 79.5 79.4 79.6 79.8 10 Construction contracts3 130.9 142.9' 157.1' LES-O1 178. (f 167.0 163.0' 168.0 169.0' 174.0' 164.0 147.0 11 Nonagricultural employment, total4 117.3 120.3 123.4 124.8 124.9 125.3 125.4 125.7 125.7 126.0 126.3 126.4 12 Goods-producing, total 2.4 2.4 2.3 102.8 102.6 102.7 102.5 102.5 102.1 102.1 102.3 101.9 13 Manufacturing, total 97.4 98.2 98.5 98.0 97.8 97.6 97.4 97.2 97.0 96.8 97.1 96.8 14 Manufacturing, production workers 98.6 99.6 99.6 98.8 98.6 98.3 98.2 98.0 97.8 97.5 98.0 97.6 15 Service-producing 123.1 126.5 130.1 131.8 132.1 132.5 132.7 133.1 133.2 133.6 134.0 134.3 16 Personal income, total 165.7r 174.9' 183.8' 187.7' 188.8' 189.6' 190.2' 191.0' 191.7' 193.1' 193.5 n.a. 17 Wages and salary disbursements 159.8 171.2 182.6 187.6 189.0 190.2 190.6 191.7 192.6 193.6 195.0 n.a. 18 Manufacturing 135.7 144.7 151.1 151.7 152.4 152.8 152.9 153.5 154.4 155.1 156.4 n.a. 19 Disposable personal income5 164,5r 172.3r 179.2' 182.7' 183.8' 184.5' 185.2' 186.0' 186.4' 187.7 188.0 n.a. 20 Retail sales5 162.5 170.1 178.5 184.7 186.8 190.0 189.8 190.9 192.8 192.6' 194.6 196.8 Prices6 21 Consumer (1982-84=100) 156.9 160.5 163.0 163.9 164.3 164.5 165.0 166.2 166.2 166.2 166.7 167.1 22 Producer finished goods (1982=100) 131.3 131.8 130.7 131.1 131.4 130.8 131.1' 131.9' 132.4 132.7 132.9 133.7 1. Data in this table appear in the Board's G.17 (419) monthly statistica lrelease. The data 3. Index of dollar value of total construction contracts, including residential, nonresidenare also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The tial, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge latest historical revision of the industrial production index and the capacity utilization rates Division. was released in November 1998. The recent annual revision is described in an article in the 4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series January 1999 issue of the Bulletin. For a description of the methods of estimating industrial covers employees only, excluding personnel in the armed forces. production and capacity utilization, see "Industrial Production and Capacity Utilization: 5. Based on data from U.S. Department of Commerce, Survey of Current Business. Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price 1997), pp. 67-92, and the references cited therein. For details about the construction of indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics, individual industrial production series, see "Industrial Production: 1989 Developments and Monthly Labor Review. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series 2. Ratio of index of production to index of capacity. Based on data from the Federal mentioned in notes 3 and 6, can also be found in the Survey of Current Business. Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted 1999 CCaatteeggoorryy 11999966 11999977 11999988 Jan. Feb. Mar. Apr.' May' June July Aug. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 133,943 136,297 137,673 139,347 139,271 138,816 139,091 139,019 139,408 139,254 139,264 Employment 2 Nonagricultural industries-1 123,264 126,159 128,085 130,097 129,817 129,752 129,685 129,929 130,078 130,015 130,192 3 Agriculture 3,443 3,399 3,378 3,299 3,328 3,281 3,384 3,295 3,354 3,292 3,219 Unemployment 4 Number 7,236 6,739 6,210 5,950 6,127 5,783 6,022 5,795 5,975 5,947 5,853 5 Rate (percent of civilian labor force) 5.4 4.9 4.5 4.3 4.4 4.2 4.3 4.2 4.3 4.3 4.2 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 119,608 122,690 125,833 127,378 127,730 127,813 128,134 128,162 128,443 128,781 128,905 7 Manufacturing 18,495 18,657 18,716 18,585 18,538 18,503 18,473 18,429 18,396 18,447 18,384 8 Mining 580 592 575 560 553 550 538 531 526 529 526 9 Contract construction 5,418 5,686 5,965 6,170 6,238 6,232 6,277 6,239 6,258 6,272 6,243 10 Transportation and public utilities 6,253 6,395 6,551 6,708 6,723 6,732 6,750 6,758 6,781 6,797 6,809 11 Trade 28,079 28,659 29,299 29,480 29,585 29,558 29,689 29,725 29,789 29,906 29,923 12 Finance 6,911 7,091 7,341 7,570 7,581 7,595 7,611 7,621 7,636 7,644 7,655 13 Service 34,454 36,040 37,525 38,313 38,458 38,556 38,697 38,782 38,952 39,030 39,162 14 Government 19,419 19,570 19,862 19,992 20,054 20,087 20,099 20,077 20,105 20,156 20,203 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 1998 1999 1998 1999 1998 1999 SSeerriieess Q3 04 Qlr Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ql Q2r Output (1992 = 100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 131.6 132.3 132.7 134.0 161.5 163.5 165.2 166.7 81.5 80.9 80.3 80.4 2 Manufacturing 134.8 136.4 136.9 138.3 168.1 170.3 172.3 174.0 80.2 80.1 79.5 79.5 3 Primary processing3 120.2 120.6 121.7 121.8 145.1 146.1 146.9 147.7 82.9 82.5 82.8 82.5 4 Advanced processing4 142.1 144.4 144.6 146.6 179.2 182.0 184.5 186.7 79.3 79.3 78.3 78.5 Durable goods 157.9 161.2 162.1 164.9 197.5 201.2 204.4 207.4 79.9 80.1 79.3 79.5 6 Lumber and products 117.7 119.2 121.6 121.6 143.9 144.9 146.0 147.1 81.8 82.3 83.3 82.7 7 Primary metals 122.4 119.3 120.4 123.4 143.2 144.4 145.4 145.9 85.5 82.6 82.8 84.6 8 Iron and steel 118.7 112.9 115.5 120.4 144.6 146.5 147.9 148.8 82.1 77.0 78.1 80.9 9 Nonferrous 126.8 126.9 126.3 127.1 141.3 141.7 142.1 142.4 89.7 89.6 88.9 89.3 10 Industrial machinery and equipment 207.9 211.7 214.6 219.5 242.9 251.6 259.8 266.9 85.6 84.1 82.6 82.2 11 Electrical machinery 292.7 304.8 310.3 326.9 381.6 396.6 411.0 424.9 76.7 76.9 75.5 76.9 12 Motor vehicles and parts 137.2 148.5 147.5 151.1 184.9 186.0 186.7 187.1 74.2 79.8 79.0 80.8 13 Aerospace and miscellaneous transportation equipment . 106.6 105.8 103.1 100.2 128.0 128.5 128.8 128.7 83.3 82.4 80.1 77.9 14 Nondurable goods 111.3 111.4 111.6 111.6 137.5 138.4 139.1 139.6 80.9 80.5 80.2 79.9 15 Textile mill products 112.1 110.2 109.7 111.2 135.1 135.2 135.0 134.7 83.0 81.5 81.2 82.5 16 Paper and products 115.0 114.3 116.3 114.9 132.5 133.4 134.2 135.0 86.8 85.7 86.7 85.1 17 Chemicals and products 114.4 114.0 114.0 115.1 148.9 149.7 150.3 150.8 76.8 76.1 75.8 76.3 18 Plastics materials 128.4 131.9 129.6 131.0 141.9 143.2 144.4 145.6 90.5 92.1 89.8 89.9 19 Petroleum products 112.7 111.9 115.4 112.9 116.8 117.1 117.4 117.7 96.5 95.6 98.3 95.9 70 Mining 103.6 100.7 98.8 97.9 120.1 120.6 120.9 121.2 86.2 83.5 81.7 80.8 71 Utilities 119.6 112.9 114.3 116.3 126.5 126.7 126.9 127.1 94.6 89.2 90.0 91.5 22 Electric 121.2 116.7 116.4 118.7 124.0 124.3 124.5 124.7 97.7 93.9 93.5 95.2 1973 1975 Previous cycle5 Latest cycle6 1998 19 99 High Low High Low High Low Aug. Mar. Apr. Mayr Juner Julyr Aug.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 82.0 80.5 80.4 80.4 80.3 80.7 80.8 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 80.7 79.5 79.6 79.5 79.4 79.6 79.8 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 83.1 82.7 82.5 82.5 82.4 82.8 82.7 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 79.9 78.4 78.6 78.6 78.4 78.6 78.9 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 80.9 79.4 79.5 79.5 79.5 80.2 80.5 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 82.3 82.5 82.1 83.6 82.5 82.6 81.5 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 86.9 83.8 83.9 84.1 85.6 87.1 87.4 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 84.7 79.0 80.0 80.4 82.3 84.2 84.6 9 Nonferrous 90.8 59.8 91.1 60.1 89,3 74.2 89.7 89.9 88.9 88.9 90.0 90.9 91.1 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 85.2 83.0 82.9 82.1 81.6 81.6 81.9 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 76.2 75.3 76.7 76.9 77.2 79.9 80.1 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 83.4 79.8 79.9 80.6 81.8 81.7 85.3 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 83.5 79.5 78.5 77.9 77.2 76.8 75.9 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 80.9 80.2 80.2 80.0 79.6 79.5 79.5 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 82.8 80.8 82.6 82.4 82.6 83.6 82.8 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 87.0 86.6 85.1 84.6 85.7 84.9 85.2 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 76.7 76.5 76.4 76.5 76.0 75.5 76.2 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 92.9 89.4 90.0 90.4 89.5 88.5 87.7 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 97.7 96.2 97.2 96.0 94.5 97.2 96.4 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 86.3 81.8 81.1 80.8 80.5 81.2 81.7 ?1 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 95.1 91.9 91.1 90.8 92.5 94.6 93.1 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 97.8 95.4 94.9 94.5 96.4 99.1 97.1 1. Data in this table appear in the Board's G.17 (419) monthly statistica lrelease. The data 3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass; latest historical revision of the industrial production index and the capacity utilization rates primary metals; and fabricated metals. was released in November 1998. The recent annual revision is described in an article in the 4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing January 1999 issue of the Bulletin. For a description of the methods of estimating industrial and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather production and capacity utilization, see "Industrial Production and Capacity Utilization: and products; machinery; transportation equipment; instruments; and miscellaneous manufac- Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February tures. 1997), pp. 67-92, and the references cited therein. For details about the construction of 5. Monthly highs, 1978-80; monthly lows, 1982. individual industrial production series, see "Industrial Production: 1989 Developments and 6. Monthly highs, 1988-89; monthly lows, 1990-91. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. 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 • November 1999 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1998 1999 GGrroouupp pro- 1998 por- avg. tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr/ Mayr Juner Julyr Aug.P Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 131.3 132.4 131.9 132.4 132.2 132.3 132.3 132.5 133.3 133.7 134.0 134.2 135.2 135.6 2 Products 60.5 123.5 124.9 124.1 124.9 124.5 124.4 124.5 124.6 125.2 125.6 125.8 125.6 126.0 126.4 3 Final products 46.3 125.4 126.8 126.0 126.7 126.1 125.9 125.8 125.9 126.5 126.8 127.2 127.1 127.4 128.2 4 Consumer goods, total 29.1 115.2 116.1 114.8 115.2 114.8 114.9 115.2 115.3 115.3 115.5 115.6 115.9 115.7 116.6 5 Durable consumer goods 6.1 135.7 140.1 137.4 140.5 138.9 139.8 141.5 143.3 142.2 144.9 146.7 147.7 146.2 150.9 6 Automotive products 2.6 132.9 141.7 136.4 141.1 139.6 139.8 141.7 140.4 138.4 140.9 144.8 146.8 140.1 151.5 7 Autos and trucks 1.7 137.8 151.4 143.4 150.6 149.1 147.7 149.4 149.3 147.5 150.1 154.6 158.8 146.7 166.7 8 Autos, consumer .9 109.2 124.4 128.3 119.9 113.7 115.5 111.7 109.0 110.8 112.8 108.8 112.4 107.2 115.9 9 Trucks, consumer .7 166.2 178.9 161.1 181.0 183.2 179.1 185.2 187.2 182.5 185.7 197.2 202.0 184.0 213.6 10 Auto parts and allied goods .... .9 125.0 127.6 125.9 127.4 125.9 128.2 130.5 127.5 125.3 127.7 130.7 129.8 130.0 130.3 11 Other 3.5 137.8 138.5 138.0 139.7 137.9 139.5 141.0 145.4 145.0 147.9 147.9 148.0 151.0 150.1 12 Appliances, televisions, and air conditioners 1.0 206.2 209.4 209.9 215.2 222.5 226.0 229.6 241.4 241.7 251.5 248.0 251.2 262.9 260.0 13 Carpeting and furniture .8 117.1 116.7 116.3 120.3 117.5 116.8 120.7 123.1 117.8 119.0 120.3 121.2 125.1 123.8 14 Miscellaneous home goods 1.6 114.7 115.3 114.5 113.6 109.5 111.4 110.9 113.5 115.5 116.7 117.3 115.9 115.5 115.5 15 Nondurable consumer goods 23.0 110.1 110.3 109.3 109.1 109.0 108.9 108.9 108.6 108.8 108.5 108.3 108.3 108.4 108.4 16 Foods and tobacco 10.3 109.0 107.5 106.9 108.0 109.6 109.6 110.0 110.2 109.6 109.0 108.4 107.9 107.1 106.8 17 Clothing 2.4 97.8 97.7 97.1 95.4 94.5 94.6 93.4 92.6 92.3 92.9 91.5 91.3 89.9 88.9 18 Chemical products 4.5 120.5 119.0 118.0 117.2 119.3 118.7 115.3 117.4 117.3 116.8 117.4 117.5 117.7 119.1 19 Paper products 2.9 105.8 106.6 105.9 105.2 104.1 103.6 102.0 101.0 99.5 100.4 101.0 102.4 102.9 104.0 20 Energy 2.9 112.2 120.1 116.8 115.0 106.5 107.1 113.3 108.9 115.3 114.0 113.5 114.9 118.4 117.2 21 Fuels .8 110.5 112.1 108.3 108.4 109.1 109.6 112.2 113.3 110.5 112.0 111.5 110.1 113.9 114.3 22 Residential utilities 2.1 112.3 123.7 120.7 117.8 104.5 105.2 113.3 106.0 117.2 114.4 114.0 116.9 120.1 118.1 23 Equipment 17.2 144.2 146.0 146.2 147.5 146.5 145.6 145.0 145.1 146.7 147.2 148.0 147.3 148.6 149.1 24 Business equipment 13.2 163.5 166.6 167.4 169.0 168.1 167.9 167.3 167.6 169.3 170.6 171.4 170.8 172.3 172.7 25 Information processing and related 5.4 209.9 213.1 217.3 219.0 219.7 220.8 222.0 222.1 226.6 232.6 240.1 240.7 248.7 250.5 26 Computer and office equipment 1.1 646.0 671.6 693.6 716.7 745.2 759.9 777.0 787.2 824.8 852.8 870.1 890.2 918.7 946.2 27 Industrial 4.0 140.0 142.3 139.5 141.6 139.9 141.3 139.9 137.9 138.5 139.4 137.2 136.8 137.3 136.0 28 Transit 2.5 133.7 141.6 140.1 141.6 140.5 139.6 137.6 137.7 137.2 137.3 135.9 134.6 132.9 132.7 29 Autos and trucks 1.2 124.6 136.9 135.6 136.1 136.4 136.0 134.8 133.2 135.0 137.9 137.7 139.2 138.5 143.2 30 Other 1.3 138.9 132.6 140.9 141.1 138.5 131.7 131.5 140.2 142.8 135.7 133.3 129.9 126.1 129.6 31 Defense and space equipment 3.3 75.7 76.5 75.5 76.4 75.7 74.6 74.4 74.8 74.9 74.5 74.8 73.9 74.2 74.2 32 Oil and gas well drilling .6 134.7 127.7 123.4 119.4 115.2 103.2 99.2 97.4 104.2 97.2 100.3 100.4 103.1 108.2 33 Manufactured homes .2 149.2 145.7 147.8 150.9 154.6 156.6 159.1 154.1 152.8 148.0 145.2 142.8 141.8 141.8 34 Intermediate products, total 14.2 118.0 119.1 118.3 119.0 119.3 119.8 120.3 120.4 121.0 121.5 121.4 121.0 121.5 121.0 35 Construction supplies 5.3 127.2 128.0 126.9 128.4 129.6 131.0 132.4 132.7 131.7 132.0 132.1 131.4 132.8 131.9 36 Business supplies 8.9 112.6 113.8 113.3 113.5 113.2 113.3 113.1 113.1 114.7 115.2 115.0 114.9 114.8 114.6 37 Materials 39.5 144.0 144.4 144.4 144.5 144.6 145.2 144.9 145.3 146.7 146.9 147.3 148.2 150.4 150.8 38 Durable goods materials 20.8 176.4 177.4 177.7 178.8 179.9 180.4 180.1 180.0 182.6 183.3 184.0 185.6 189.6 190.6 39 Durable consumer parts 4.0 144.0 149.6 147.7 146.2 145.6 144.8 141.9 145.4 147.7 145.7 145.5 147.0 152.5 151.2 40 Equipment parts 7.6 277.4 278.0 282.7 287.0 289.9 292.6 293.2 292.5 297.0 302.5 305.5 309.7 318.8 323.5 41 Other 9.2 129.0 128.3 127.7 128.4 129.3 129.3 129.8 128.6 130.2 130.0 130.0 130.5 131.7 132.0 42 Basic metal materials 3.1 121.2 121.9 118.2 118.3 117.3 116.3 118.4 116.1 118.4 119.2 118.6 119.9 122.2 122.3 43 Nondurable goods materials 8.9 113.5 113.1 112.0 111.7 112.2 112.5 112.0 113.2 113.0 112.7 112.9 113.6 113.3 113.3 44 Textile materials 1.1 108.7 107.7 107.6 108.8 103.0 102.5 99.0 101.1 101.8 103.1 102.7 102.3 102.5 102.2 45 Paper materials 1.8 116.0 116.4 115.0 115.8 112.7 114.7 116.5 116.0 116.9 116.3 114.6 118.5 116.9 117.5 46 Chemical materials 3.9 114.5 113.6 111.8 111.1 113.7 113.0 112.8 114.0 113.7 113.7 114.3 114.6 114.0 114.3 47 Other 2.1 111.5 111.6 111.5 110.4 113.2 114.4 112.5 114.8 113.1 112.0 113.6 112.2 113.8 112.7 48 Energy materials 9.7 103.5 104.4 105.2 103.7 101.5 102.6 102.6 102.6 103.4 103.4 103.1 103.0 104.4 104.0 49 Primary energy 6.3 101.2 101.2 102.3 102.6 99.8 100.3 100.4 101.2 100.4 98.7 99.3 101.0 102.5 102.1 50 Converted fuel materials 3.3 108.1 110.7 110.9 106.1 104.9 107.2 107.1 105.6 109.2 112.4 110.5 107.1 108.1 107.8 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 131.3 132.1 131.7 132.1 131.9 132.1 132.0 132.3 133.2 133.4 133.6 133.8 135.0 135.1 52 Total excluding motor vehicles and parts 95.1 130.8 131.3 131.0 131.5 131.4 131.7 131.7 131.7 132.6 132.9 133.2 133.3 134.3 134.4 53 Total excluding computer and office equipment 98.2 127.1 128.0 127.4 127.8 127.4 127.5 127.4 127.6 128.2 128.4 128.6 128.8 129.6 130.0 54 Consumer goods excluding autos and trucks . 27.4 113.9 114.3 113.2 113.4 113.0 113.2 113.4 113.5 113.6 113.7 113.6 113.7 114.0 114.0 55 Consumer goods excluding energy 26.2 115.5 115.7 114.6 115.3 115.8 115.8 115.4 116.0 115.3 115.7 115.9 116.0 115.4 116.5 56 Business equipment excluding autos and trucks 12.0 167.9 169.9 171.0 172.7 171.6 171.5 170.9 171.5 173.1 174.3 175.2 174.3 176.1 176.0 57 Business equipment excluding computer and office equipment 12.1 142.4 144.8 145.1 146.2 144.6 144.1 143.1 143.2 144.0 144.7 145.1 144.1 145.0 144.9 58 Materials excluding energy 29.8 156.7 156.9 156.7 157.3 158.2 158.6 158.2 158.6 160.2 160.6 161.1 162.4 164.9 165.5 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 1998 1999 SIC pro- 1998 GGrroouupp code por- avg. tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May' June' July' Aug.p Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 131.3 132.4 131.9 132.4 132.2 132.3 132.3 132.5 133.3 133.7 134.0 134.2 135.2 135.6 60 Manufacturing 85.4 135.1 135.7 135.2 136.1 136.4 136.7 136.4 136.9 137.5 138.0 138.4 138.5 139.3 139.9 61 Primary processing 26.5 120.7 120.6 119.3 120.1 120.3 121.3 121.8 121.6 121.7 121.7 121.8 121.9 122.7 122.7 62 Advanced processing 58.8 142.1 143.3 143.2 144.2 144.6 144.4 143.8 144.6 145.4 146.2 146.7 146.8 147.7 148.7 63 Durable goods 45.0 157.5 159.8 159.6 161.2 161.0 161.5 161.4 161.7 163.1 164.1 165.0 165.6 167.7 168.9 64 Lumber and products " ' 24 2.0 117.0 118.5 117.0 118.0 118.3 121.4 122.0 122.1 120.7 120.4 122.9 121.6 122.2 120.8 65 Furniture and fixtures 25 1.4 121.4 120.1 121.6 124.5 123.6 122.9 122.5 124.5 126.1 123.6 123.5 124.6 126.0 126.2 66 Stone, clay, and glass products 32 2.1 126.2 127.0 126.6 128.3 130.5 131.6 133.5 132.2 131.1 128.8 128.3 128.4 129.5 129.9 67 Primary metals 33 3.1 123.8 124.4 120.1 120.6 118.7 118.6 120.7 118.5 122.0 122.4 122.8 125.1 127.4 127.9 68 Iron and steel 331,2 1.7 121.1 122.5 113.4 114.4 109.7 114.6 116.7 112.6 117.1 118.9 119.6 122.6 125.6 126.3 69 Raw steel 331PT .1 115.7 120.3 112.6 109.7 100.2 102.0 106.6 106.6 109.1 110.5 113.4 110.9 112.6 115.2 70 Nonferrous 333-6,9 1.4 127.0 126.7 128.1 128.0 129.3 123.4 125.4 125.6 127.9 126.6 126.5 128.2 129.6 129.9 71 Fabricated metal products . . 34 5.0 127.3 126.3 126.2 126.9 127.7 128.7 127.6 126.7 127.5 127.6 126.9 127.8 128.5 128.3 72 Industrial machinery and equipment 35 8.0 203.7 207.0 207.7 211.2 211.1 212.7 212.3 213.9 217.6 219.5 219.3 219.8 221.2 223.6 73 Computer and office equipment 357 1.8 649.1 673.6 695.5 718.5 746.9 761.6 778.9 789.3 828.3 859.3 878.6 898.1 927.5 955.0 74 Electrical machinery 36 7.3 291.9 290.8 297.7 302.4 304.8 307.3 308.7 309.2 313.1 322.2 326.9 331.5 346.2 350.2 75 Transportation equipment. . . 37 9.5 123.0 130.3 127.6 128.4 127.1 125.6 124.0 125.6 125.5 124.9 125.1 125.7 125.4 127.9 76 Motor vehicles and parts . 371 4.9 141.1 154.2 149.9 150.2 148.8 146.6 145.3 147.9 149.2 149.4 150.7 153.1 153.0 159.8 77 Autos and light trucks . 371PT 2.6 128.5 142.0 136.5 140.4 138.1 137.3 137.9 137.3 136.3 138.7 141.4 145.3 134.9 152.2 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 104.9 106.9 105.8 106.9 105.7 104.8 103.2 103.7 102.4 101.1 100.3 99.3 98.8 97.5 79 Instruments 38 5.4 113.0 113.0 114.2 114.6 114.1 113.9 114.3 113.8 114.6 115.6 117.9 116.0 117.0 116.0 80 Miscellaneous 39 1.3 117.7 117.7 117.0 115.9 114.1 115.4 114.8 115.8 116.7 118.2 119.4 118.4 119.0 119.7 81 Nondurable goods 40.4 111.9 111.3 110.6 110.9 111.6 111.7 111.3 111.9 111.7 111.8 111.7 111.3 111.1 111.2 82 Foods "20 9.4 109.6 107.9 107.7 109.1 111.3 111.1 112.0 112.3 111.4 111.4 110.8 110.1 109.0 108.8 83 Tobacco products 21 1.6 106.0 107.0 104.2 101.9 99.8 100.0 96.9 97.4 97.3 96.0 97.2 96.3 97.8 96.2 84 Textile mill products 22 1.8 112.2 111.8 111.2 112.4 108.8 109.4 109.3 110.6 109.0 111.4 111.0 111.1 112.3 111.1 85 Apparel products 23 2.2 99.2 99.2 98.3 97.3 95.5 95.3 94.1 93.6 93.3 94.0 93.1 92.3 91.3 89.8 86 Paper and products 26 3.6 115.0 115.3 113.9 115.4 112.3 115.3 116.2 116.4 116.5 114.6 114.2 115.9 115.1 115.8 87 Printing and publishing .... 27 6.7 105.1 104.9 104.6 104.2 105.4 105.1 103.6 103.8 103.7 104.3 104.2 104.1 103.9 104.4 88 Chemicals and products .... 28 9.9 115.5 114.3 113.3 113.1 114.7 114.0 112.5 114.4 115.1 115.1 115.4 114.7 114.1 115.2 89 Petroleum products 29 1.4 112.0 114.1 110.7 110.4 112.8 112.5 116.7 116.4 113.1 114.3 113.0 111.3 114.6 113.8 90 Rubber and plastic products . 30 3.5 132.6 132.2 132.6 133.4 135.0 136.0 135.4 135.2 135.4 136.2 137.6 136.5 138.3 137.9 91 Leather and products 31 .3 75.3 74.0 73.5 72.8 74.3 73.0 70.9 70.5 70.7 70.3 70.6 70.6 70.2 68.2 92 Mining 6.9 104.0 103.7 102.4 102.0 101.1 99.0 98.5 98.9 98.9 98.3 97.9 97.7 98.6 99.2 93 Metal "lO .5 110.0 109.0 106.4 113.6 110.7 108.3 110,1 108.4 104.1 105.2 98.6 93.1 94.3 92.2 94 Coal 12 1.0 109.7 109.7 115.8 110.8 108.6 114.5 107.7 109.1 103.4 106.8 106.1 106.5 109.6 110.6 95 Oil and gas extraction 13 4.8 99.6 99.2 96.8 96.8 94.2 91.0 91.5 91.7 93.3 91.8 92.4 93.0 93.6 94.5 96 Stone and earth minerals 14 .6 124.7 124.3 120.3 118.8 132.1 125.6 126.9 127.7 129.1 126.7 124.1 121.6 121.1 120.8 97 Utilities 7.7 113.9 120.2 120.3 116.5 110.6 111.8 114.7 111.3 116.7 115.8 115.4 117.6 120.4 118.4 98 Electric 491.493PT 6.2 117.2 121.2 122.6 120.3 114.6 115.2 116.2 114.1 118.9 118.2 117.8 120.2 123.7 121.2 99 Gas 492.493PT 1.6 101.9 115.7 109.7 98.7 92.0 96.0 108.4 98.6 106.9 104.5 104.3 105.7 105.0 105.6 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 134.7 134.6 134.4 135.3 135.7 136.2 136.0 136.3 136.8 137.4 137.7 137.6 138.6 138.8 101 Manufacturing excluding computer and office equipment 83.6 130.2 130.6 130.0 130.8 130.9 131.1 130.8 131.2 131.5 131.9 132.2 132.2 132.9 133.4 102 Computers, communications equipment, and semiconductors 5.9 515.6 522.5 538.3 552.1 562.8 571.2 576.6 580.0 597.8 620.1 636.7 652.3 684.1 700.8 103 Manufacturing excluding computers and semiconductors 81.1 120.1 120.6 119.9 120.4 120.4 120.5 120.1 120.5 120.7 120.8 120.9 120.7 121.1 121.4 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 118.5 119.0 118.1 118.7 118.8 118.9 118.5 118.9 119.0 119.0 119.0 118.7 119.0 111199..33 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,489.8 2,525.1 2,501.0 2,519.7 2,511.6 2,513.9 2,527.3 2,527.2 2,536.0 2,547.5 2,549.8 2,549.7 2,554.5 2,569.5 106 Final 1,552.1 1,958.0 1,985.9 1,966.4 1,982.3 1,973.4 1,972.7 1,982.5 1,982.7 1,989.4 1,997.8 2,000.0 2,002.2 2,003.7 2,022.2 107 Consumer goods 1,049.6 1,212.3 1,227.4 1,208.2 1,217.1 1,212.6 1,215.0 1,227.4 1,227.0 1,226.3 1,230.6 1,230.9 1,235.4 1,231.8 1,245.2 108 Equipment 502.5 746.9 762.5 762.7 769.8 765.2 762.0 758.8 759.5 767.3 771.5 773.5 770.9 776.5 781.5 109 Intermediate 449.9 533.6 540.3 535.7 538.7 539.1 541.9 545.4 545.1 547.1 550.2 550.3 548.4 551.3 548.8 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The 1997), pp. 67-92, and the references cited therein. For details about the construction of latest historical revision of the industrial production index and the capacity utilization rates individual industrial production series, see "Industrial Production: 1989 Developments and was released in November 1998. The recent annual revision is described in an article in the Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. January 1999 issue of the Bulletin. For a description of the methods of estimating industrial 2. Standard industrial classification. production and capacity utilization, see "Industrial Production and Capacity Utilization: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A46 Domestic Nonfinancial Statistics • November 1999 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1998 1999 item 11999977 11999988 Oct. Nov. Dec. Jan. Feb. Mar.' Apr.' May June July Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,426 1,441 1,604 1,726 1,688 1,708 1,778 1,738 1,654 1,572 1,591 1,641 1,641 2 One-family 1,070 1,062 1,184 1,210 1,254 1,296 1,275 1,306 1,242 1,214 1,243 1,241 1,247 3 Two-family or more 356 379 421 516 434 412 503 432 412 358 348 400 394 4 Started 1,477 1,474 1,617 1,698 1,654 1,750 1,820 1,752 1,746 1,577 1,668 1,607 1,670 6 One-family 1,161 1,134 1,271 1,298 1,375 1,383 1,393 1,380 1,394 1,260 1,389 1,305 1,321 6 Two-family or more 316 340 346 400 279 367 427 372 352 317 279 302 349 1 Under construction at end of period1 819 834 935 968 971 999 1,011 1,032 1,036 1,031 1,029 1,018 1,019 8 One-family 584 570 638 659 667 688 697 712 714 708 708 701 702 9 Two-family or more 235 264 297 309 304 311 314 320 322 323 321 317 317 10 Completed 1,406 1,406 1,473 1,455 1,600 1,440 1,648 1,528 1,700 1,633 1,650 1,668 1,599 11 One-family 1,123 1,120 1,158 1,164 1,254 1,150 1,292 1,246 1,357 1,324 1,344 1,337 1,266 12 Two-family or more 283 285 315 291 346 290 356 282 343 309 306 331 333 13 Mobile homes shipped 361 354 372 352 389 382 390 381 383 368 365 355 336 Merchant builder activity in one-family units 14 Number sold 757 804 886 903 985 958 908 909 885 952 912 979 980 15 Number for sale at end of period1 326 287 300 293 292 295 295 297 300 300 305 307 311 Price of units sold (thousands of dollars)2 16 Median 140.0 146.0 152.5 154.5 151.0 152.5 152.5 159.9 155.0 160.0 151.2 155.0 156.0 17 Average 166.4 176.2 181.9 182.8 178.6 183.3 182.8 191.4 189.4 191.4 186.4 190.7 186.0 EXISTING UNITS (one-family) 18 Number sold 4,196 4,381 4,970 4,940 5,020 5,340 5,060 5,140 5,420 5,250 5,000 5,630 5,400 Price of units sold (thousands of dollars f 19 Median 115.8 121.8 128.4 128.1 129.4 128.5 130.3 128.1 129.6 130.7 132.8 136.9 136.0 20 Average 141.8 150.5 159.1 157.7 159.9 159.6 162.8 159.6 162.3 163.8 167.4 174.2 171.9 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 581,920R 617,877R 664,45LR 674,253R 680,117R 690,462R 697,858R 710,657R 715,396 705,492 699,498 699,149 695,678 22 Private 447,593r 474,842' 518,987' 528,694' 534,743' 541,591' 543,471' 548,682' 555,362 549,005 548,249 548,925 545,008 23 Residential 255,577r 265,908r 293,569' 302,056' 306,299' 310,261' 315,828' 318,483' 323,133 322,297 322.090 321,718 318,971 24 Nonresidential 192,017' 208,933' 225,418' 226,638' 228,444' 231,3301 227,643' 230,199' 232,229 226,708 226,159 227,207 226,037 25 Industrial buildings 32,644' 31,355' 32,308' 30,928' 30,845' 30,327' 29,895' 28,967' 29,052 26,298 25,102 25,389 24,571 26 Commercial buildings 75,829' 86,1901 95,252' 97,705' 99,831' 101,605' 100,164' 102,802' 103,983 102,318 104,352 104,858 105,206 27 Other buildings 30,648' 37,198' 39,438' 38,749' 39,744' 42,354' 38,833' 40,449' 39,840 39,718 38,895 37,794 38,166 28 Public utilities and other 52,896' 54,190' 58,421' 59,256' 58,024' 57,044' 58,751' 57,981' 59,354 58,374 57,810 59,166 58,094 29 Public 134,326' 143,035' 145,464' 145,559' 145,374' 148,871' 154,387' 161,975' 160,033 156,487 151,249 150,224 150,671 30 Military 2,604' 2,559' 2,588' 2,407' 2,296' 2,306' 1,881' 2,636' 2,223 2,290 2,170 2,189 2,520 31 Highway 39,883' 44,295' 45,067' 46,301' 43,929' 44,583' 50,538' 54,880' 53,099 50,586 48,354 45,077 46,085 32 Conservation and development 5,827r 5,576' 5,487' 5,321' 5,639' 5,406' 6,018' 6,271' 6,194 6,020 5,129 5,839 5,689 33 Other 86,012' 90,605' 92,322' GI.SSO' 93,510' 96,576' 95,950' 98,188' 98,517 97,591 95,596 97,119 96,377 1. Not at annual rates. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are 2. Not seasonally adjusted. private, domestic shipments as reported by the Manufactured Housing Institute and season- 3. Recent data on value of new construction may not be strictly comparable with data for ally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are previous periods because of changes by the Bureau of the Census in its estimating techniques. published by the National Association of Realtors. All back and current figures are available For a description of these changes, see Construction Reports (C-30-76-5), issued by the from the originating agency. Permit authorizations are those reported to the Census Bureau Census Bureau in July 1976. from 19,000 jurisdictions beginning in 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Selected Measures A47 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data except as noted Change from 12 Change from 3 months earlier Change from 1 month earlier months earlier (annual rate) IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1998 1999 1999 AAAuuuggg... 11999988 11999999 111999999999 111 AAuugg.. AAuugg.. Sept. Dec. Mar. June Apr. May June July Aug. CONSUMER PRICES2 (1982-84=100) 1 All items 1.6 2.3 1.5 2.0 1.5 2.9 .7 .0 .0 .3 .3 167.1 7 Food 2.2 2.0 2.5 2.8 1.7 1.7 .1 .4 .0 .2 .2 164.2 3 Energy items -7.7 7.2 -9.0 -5.1 5.8 14.2 6.1 -1.3 -1.2 2.1 2.7 111.3 4 All items less food and energy 2.5 1.9 2.3 2.5 .9 2.3 .4 .1 .1 .2 .1 177.1 Commodities 1.1 .2 1.1 2.5 -3.0 2.0 .6 -.1 .0 .1 -.1 143.0 6 Services 3.1 2.6 3.0 2.5 2.7 2.5 .4 .2 .1 .3 .2 196.5 PRODUCER PRICES (1982=100) 7 Finished goods -.8 2.3 .6 2.2 ,6r 2.5 .5 .2 -.1 .2 .5 133.7 8 Consumer foods .2 .4 1.8 .3 2.1 .3 — .7r ,3r .4 -.9 .4 135.7 9 Consumer energy -10.5 10.9 -9.2 -8.9 5.7r 21.9 5.5' -,lr -.3 3.4 3.7 83.6 10 Other consumer goods 2.1 2.0 3.0 8.3 — 1.3r .3 ,lr .R -.1 .1 -.1 150.5 11 Capital equipment -.7 .1 .9 .3 -,6r .0 ,lr ,IR -.3 -.1 .0 136.9 Intermediate materials 12 Excluding foods and feeds -1.7 1.5 -2.2 -4.5 ,3r 5.7 ,8r .2 .4 .6 .7 125.4 13 Excluding energy -.6 .2 -1.8 -2.7 -.9 3.1 .2 .2 .5 .4 .2 133.7 Crude materials 14 Foods -7.4 -3.1 -19.6 -7.0 4.1 .0 —2.9r 2.6r .4 -4.8 3.8 100.1 15 Energy -19.1 32.1 -25.3 13.5 -2i.R 158.3 12.6r 9.3r 3.1 3.7 7.2 85.2 16 Other -11.2 -2.1 -19.9 -24.3 .9' 7.3 -.9' 2.2' .5 2.3 1.8 136.8 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A48 Domestic Nonfinancial Statistics • November 1999 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1999 Q2 Q3 Q4 Q1 GROSS DOMESTIC PRODUCT 1 Total 7,661.6 8,110.9 8,511.0 8,440.6 8,537.9 8,681.2 By source 4 3 5 2 Per N D S s e o o u r n n r v a a d i b c l u l e r e c s a o b g n l o s e o u d m go s p o t d io s n expenditures 5 3 1 . , , 2 6 0 5 1 3 4 3 5 3 3 9 . . . . 7 2 3 2 5 3 1 . , , 4 2 6 6 9 2 7 0 3 0 3 0 . . . . 7 1 0 6 5 3 1 , , , 7 8 4 6 2 0 2 6 7 4 0 2 . . . . 9 7 8 4 5 3 1 . , , 7 7 3 6 7 2 9 5 3 8 0 5 . . . . 7 4 1 2 5 3 1 , , , 8 7 4 6 4 5 1 7 6 7 8 0 . . . . 7 7 9 0 5 3 1 . . . 9 7 4 6 3 5 8 9 4 4 8 1 . . . . 8 5 9 3 6 3 1 , , , 7 5 0 7 4 5 7 3 3 0 1 6 . . . . 4 6 2 0 6 Gross private domestic investment 1,131.9 1,256.0 1.367.1 1,345.0 1.364.4 1.392.4 1.417.4 7 Fixed investment 1.099.8 1,188.6 1,307.8 1.305.8 1.307.5 1,346.7 1,377.9 8 Nonresidential 787.9 860.7 938.2 941.9 931.6 957.9 972.6 9 Structures 216.9 240.2 246.9 245.4 246.2 250.9 255.0 10 Producers' durable equipment 571.0 620.5 691.3 696.6 685.4 706.9 717.6 11 Residential structures 311.8 327.9 369.6 363.8 375.8 388.9 405.3 12 Change in business inventories 32.1 67.4 59.3 39.2 57.0 45.7 39.5 13 Nonfarm 24.5 63.1 52.7 31.5 49.3 39.3 36.4 14 Net exports of goods and services -91.2 -93.4 -151.2 -159.3 -165.5 -156.2 -196.9 15 Exports 873.8 965.4 959.0 949.6 936.2 976.8 962.7 16 Imports 965.0 1.058.8 1.110.2 1.108.9 1,101.7 1,133.0 1,159.6 17 Government consumption expenditures and gross investment 1,405.2 1,454.6 1,487.1 1,481.2 1,492.3 1,510.2 1.537.5 18 Federal 518.4 520.2 520.6 520.7 519.4 530.7 536.6 19 State and local 886.8 934.4 966.5 960.4 972.9 979.5 1,000.9 By major type of product 20 Final sales, total 7.629.5 8,043.5 8.451.6 8,401.3 8,480.9 8,635.5 8,769.1 21 Goods 2,780.3 2,911.2 3.044.7 3.025.3 3,029.0 3,118.8 3,154.1 22 Durable 1,228.8 1,310.1 1,391.0 1,380.8 1,373.0 1,433.1 1,436.1 23 Nondurable 1.551.6 1,601.0 1,653.7 1.644.4 1,655.9 1,685.7 1,718.1 24 Services 4,179.5 4,414.1 4,641.0 4.619.5 4,678.5 4,727.7 4,793.7 25 Structures 669.7 718.3 765.9 756.6 773.5 789.0 821.3 26 Change in business inventories 32.1 67.4 59.3 39.2 57.0 45.7 39.5 27 Durable goods 20.8 33.6 25.2 4.5 19.5 27.0 16.5 28 Nondurable goods 11.4 33.8 34.1 34.7 37.5 18.7 23.1 MEMO 6,994.8 7,269.8 7,551.9 7,498.6 7,566.5 7,677.7 7,759.6 29 Total GDP in chained 1992 dollars NATIONAL INCOME 6,256.0 6.646.5 6,994.7 6.945.5 7.032.3 7,126.0 7,265.2 30 Total 4,409.0 4,687.2 4,981.0 4,945.2 5,011.6 5,084.3 5,166.5 31 Compensation of employees 3.640.4 3.893.6 4,153.9 4.121.6 4,181.1 4,246.8 4,317.0 32 Wages and salaries 640.9 664.2 689.3 685.8 692.7 699.2 711.2 33 Government and government enterprises 2.999.5 3,229.4 3,464.6 3,435.8 3.488.4 3,547.6 3,605.7 34 Other 768.6 793.7 827.1 823.5 830.5 837.5 849.6 35 Supplement to wages and salaries 381.7 400.7 420.1 417.9 422.1 426.5 434.9 36 Employer contributions for social insurance 387.0 392.9 406.9 405.7 408.4 411.0 414.7 37 Other labor income 38 Proprietors' income1 527.7 551.2 577.2 571.7 576.1 596.9 598.3 39 Business and professional1 488.8 515.8 548.5 544.0 550.9 562.2 575.8 40 Farm1 38.9 35.5 28.7 27.7 25.2 34.7 22.5 41 Rental income of persons2 150.2 158.2 162.6 161.0 163.6 167.5 167.7 42 Corporate profits1 750.4 817.9 824.6 820.6 827.0 821.7 868.8 43 Profits before tax* 680.2 734.4 717.8 723.5 720.5 708.1 752.6 44 Inventory valuation adjustment -1.2 6.9 14.5 7.8 11.7 13.4 11.6 45 Capital consumption adjustment 71.4 76.6 92.3 89.4 94.8 100.2 104.6 46 Net interest 418.6 432.0 449.3 447.1 454.0 455.6 463.9 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 1998 1999 AAccccoouunntt 11999966 11999977 11999988 Q2 Q3 Q4 Ql Q2 PERSONAL INCOME AND SAVING 1 Total personal income 6,425.2 6,784.0 7,126.1 7,081.9 7,160.8 7,257.9 7,349.3 7,442.3 2 Wage and salary disbursements 3,631.1 3,889.8 4,149.9 4,117.6 4,177.1 4,242.8 4,317.0 4,378.1 Commodity-producing industries 909.0 975.0 1,026.9 1,023.2 1,028.0 1,037.4 1,048.1 1,060.6 4 Manufacturing 674.6 719.5 751.5 750.8 750.9 754.1 759.2 767.4 Distributive industries 823.3 879.8 939.6 932.2 945.8 961.5 971.4 982.3 6 Service industries 1,257.9 1,370.8 1,494.0 1,476.4 1,510.6 1,544.6 1,586.2 1,619.0 7 Government and government enterprises 640.9 664.2 689.3 685.8 692.7 699.2 711.2 716.2 8 Other labor income 387.0 392.9 406.9 405.7 408.4 411.0 414.7 419.6 9 Proprietors' income1 527.7 551.2 577.2 571.7 576.1 596.9 598.3 610.4 10 Business and professional1 488.8 515.8 548.5 544.0 550.9 562.2 575.8 586.7 11 Farm1 38.9 35.5 28.7 27.7 25.2 34.7 22.5 23.7 1? Rental income of persons2 150.2 158.2 162.6 161.0 163.6 167.5 167.7 170.4 N Dividends 248.2 260.3 263.1 262.1 263.0 265.7 268.8 272.7 14 Personal interest income 719.4 747.3 764.8 763.0 769.2 769.9 771.0 777.8 n Transfer payments 1,068.0 1,110.4 1,149.0 1,145.8 1,152.9 1,158.3 1,175.2 1,181.3 16 Old age survivors, disability, and health insurance benefits 538.0 565.9 586.5 585.0 589.0 590.6 597.9 601.4 17 LESS: Personal contributions for social insurance 306.3 326.2 347.4 345.1 349.5 354.1 363.4 367.9 18 EQUALS: Personal income 6,425.2 6,784.0 7,126.1 7,081.9 7,160.8 7,257.9 7,349.3 7,442.3 19 LESS: Personal tax and nontax payments 890.5 989.0 1,098.3 1,092.9 1,108.4 1,124.9 1,144.1 1,162.6 20 EQUALS: Disposable personal income 5,534.7 5,795.1 6,027.9 5,988.9 6,052.4 6,133.1 6,205.2 6,279.6 21 LESS: Personal outlays 5,376.2 5,674.1 6,000.2 5,963.3 6,039.8 6,133.6 6,250.7 6,358.8 22 EQUALS: Personal saving 158.5 121.0 27.7 25.6 12.6 -.6 -45.5 -79.1 MEMO Per capita (chained 1992 dollars) 73 Gross domestic product 26,335.7 27,136.2 27,938.9 27,783.0 27,972.1 28,299.8 28,527.9 2288,,558822..00 24 Personal consumption expenditures 17,893.0 18,340.9 19,065.0 19,007.8 19,156.3 19,336.4 19,602.7 19,771.9 25 Disposable personal income 18,989.0 19,349.0 19,790.0 19,719.0 19,829.0 19,980.0 20,101.0 20,172.0 26 Saving rate (percent) 2.9 2.1 .5 .4 .2 .0 -.7 -1.3 GROSS SAVING 27 Gross saving 1,274.5 1,406.3 1,468.0 1,448.5 1,474.5 1,466.6 1,511.4 1,487.2 28 Gross private saving 1,114.5 1,141.6 1,090.4 1,079.0 1,078.7 1,073.7 1,061.9 1,017.9 29 Personal saving 158.5 121.0 27.7 25.6 12.6 -.6 -45.5 -79.1 30 Undistributed corporate profits1 262.4 296.7 305.4 300.9 304.8 303.9 332.5 312.4 31 Corporate inventory valuation adjustment -1.2 6.9 14.5 7.8 11.7 13.4 11.6 -17.1 Capital consumption allowances 3? Corporate 452.0 477.3 500.6 497.8 503.1 550088..99 551144..99 552211..88 33 Noncorporate 232.3 242.8 252.7 250.7 254.2 257.5 260.0 262.8 34 Gross government saving 160.0 264.7 377.6 369.4 395.7 392.9 449.4 469.3 35 Federal -39.6 49.5 142.5 143.9 161.6 135.8 192.3 210.2 36 Consumption of fixed capital 70.6 70.6 69.7 69.5 69.6 70.0 69.5 69.4 37 Current surplus or deficit (-), national accounts -110.3 -21.1 72.8 74.4 92.0 65.8 122.7 140.8 38 State and local 199.7 215.2 235.2 225.6 234.2 257.1 257.2 259.1 39 Consumption of fixed capital 77.1 81.1 85.0 84.3 85.4 86.6 87.5 89.0 40 Current surplus or deficit (-), national accounts 122.6 134.1 150.2 141.3 148.7 170.5 169.7 170.2 41 Gross investment 1,242.3 1,350.5 1,391.5 1,362.7 1,372.5 1,402.4 1,418.3 1,366.7 47 Gross private domestic investment 1,131.9 1,256.0 1,367.1 1,345.0 1,364.4 1,392.4 1,417.4 1,423.2 43 Gross government investment 229.7 235.4 237.0 232.5 239.7 238.3 255.6 249.6 44 Net foreign investment -119.2 -140.9 -212.6 -214.8 -231.6 -228.3 -254.7 -306.2 45 Statistical discrepancy -32.2 -55.8 -76.5 -85.7 -102.0 -64.2 -93.1 -120.5 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 International Statistics • November 1999 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1998 1999 IItteemm ccrreeddiittss oorr ddeebbiittss 11999966 11999977 11999988 Q2 Q3 Q4 Qlr Q2P 1 Balance on current account -129,295 -143,465 -220,562 -52,400 -63,476 -61,669 -68,654 -80,673 2 Balance on goods and services -104,318 -104,730 -164,282 -41,961 -45,724 -43,262 -53,974 -65,016 3 Exports 849,806 938,543 933,907 231,889 229,284 236,904 231,904 234,526 4 Imports -954,124 -1,043,273 -1,098,189 -273,850 -275,008 -280,166 -285,878 -299,542 5 Income, net 17,210 3,231 -12,205 -553 -6,965 -4,933 -4,340 -4,382 6 Investment, net 21,754 8,185 -6,956 735 -5,637 -3,571 -2,946 -3,011 7 Direct 67,746 69,220 59,405 16,177 11,834 14,558 14,834 14,103 8 Portfolio -45,992 -61,035 -66,361 -15,442 -17,471 -18,129 -17,780 -17,114 9 Compensation of employees -4,544 -4,954 -5,249 -1,288 -1,328 -1,362 -1,394 -1,371 10 Unilateral current transfers, net -42,187 -41,966 -44,075 -9,886 -10,787 -13,474 -10,340 -11,275 11 Change in U.S. government assets other than official reserve assets, net (increase, —) -989 68 -429 -483 185 -50 119 -380 12 Change in U.S. official reserve assets (increase, —) 6,668 -1,010 -6,784 -1,945 -2,026 -2,369 4,068 1,159 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) 370 -350 -149 72 188 -227 563 -190 15 Reserve position in International Monetary Fund -1,280 -3,575 -5,118 -1,031 -2,078 -1,924 3 1,413 16 Foreign currencies 7,578 2,915 -1,517 -986 -136 -218 3,502 -64 17 Change in U.S. private assets abroad (increase, —) -386,441 -464,354 -285,605 -118,089 -60,256 -48,188 -19,335 -124,940 18 Bank-reported claims3 -91,555 -144,822 -24,918 -27,704 -33,344 37,192 27,771 -37,082 19 Nonbank-reported claims -86,333 -120,403 -25,041 -14,327 -20,320 16,202 -13,853 -26,429 20 U.S. purchases of foreign securities, net -115,859 -89,174 -102,817 -32,886 14,994 -70,809 8,132 -26,387 21 U.S. direct investments abroad, net -92,694 -109,955 -132,829 -43,172 -21,586 -30,773 -41,385 -35,042 22 Change in foreign official assets in United States (increase, +) 127,390 18,119 -21,684 -10,551 -46,489 24,352 4,708 -986 23 U.S. Treasury securities 115,671 -6,690 -9,957 -20,318 -32,811 31,836 800 -6,708 24 Other U.S. government obligations 5,008 4,529 6,332 254 1,906 1,562 5,993 5,792 25 Other U.S. government liabilities3 -316 -1,798 -3,113 -807 -224 -1,054 -1,594 -770 26 Other U.S. liabilities reported by U.S. banks3 5,704 22,286 -11,469 9,488 -12,866 -7,133 -589 1,202 27 Other foreign official assets4 1,323 -208 -3,477 832 -2,494 -859 98 -502 28 Change in foreign private assets in United States (increase, +) 447,457 733,542 524,321 173,017 140,036 125,453 84,152 242,033 29 U.S. bank-reported liabilities2 16,478 149,026 40,731 34,138 77,313 -21,811 -14,184 49,374 30 U.S. nonbank-reported liabilities 39,404 107,779 9,412 18,040 11,875 -53,210 20,188 -710 31 Foreign private purchases of U.S. Treasury securities, net 154,996 146,433 46,155 25,759 -1,438 24,391 -8,781 -5,517 32 U.S. currency flows 17,362 24,782 16,622 2,349 7,277 6,250 2,440 3,057 33 Foreign purchases of other U.S. securities, net 130,240 196.258 218,026 71,785 20,103 49,328 61,540 77,272 34 Foreign direct investments in United States, net 88,977 109,264 193,375 20,946 24,906 120,505 22,949 118,557 35 Capital account transactions, net5 672 292 617 160 148 166 166 180 36 Discrepancy -65,462 -143,192 10,126 10,291 31,878 -37,695 -5,224 -36,393 37 Due to seasonal adjustment 528 -10,582 4,144 5,264 582 38 Before seasonal adjustment -65,462 -143,192 10,126 9,763 42,460 -41,839 -10,488 -36,975 MEMO Changes in official assets 39 U.S. official reserve assets (increase, —) 6,668 -1,010 -6,784 -1,945 -2,026 -2,369 4,068 1,159 40 Foreign official assets in United States, excluding line 25 (increase, +) 127,706 19,917 -18,571 -9,744 -46,265 25,406 6,302 -216 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 14,911 112,124 -11,499 -657 -11,642 2,057 2,058 1,774 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^*1. corporations and state and local governments. 2. Reporting banks included all types of depository institutions as well as some brokers 5. Consists of capital transfers (such as those of accompanying migrants entering or and dealers. leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced 3. Associated primarily with military sales contracts and other transactions arranged with nonfinancial assets. or through foreign official agencies. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current 4. Consists of investments in U.S. corporate stocks and in debt securities of private 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 1999 IItteemm 11999966 11999977 11999988 Jan.r Feb.r Mar.r Apr.r Mayr Juner JulyP 1 Goods and services, balance -104,318 -104,731 -164,282 -16,146 -18,515 -19,311 -18,787 -21,390 -24,604 -25,184 2 Merchandise -191,270 -196,652 -246,932 -23,349 -25,172 -25,680 -25,334 -27,899 -31,179 -31,695 3 Services 86,952 91,921 82,650 7,203 6,657 6,369 6,547 6,509 6,575 6,511 4 Goods and services, exports 849,806 938,543 933,907 77,833 77,025 77,047 78,113 77,978 78,623 79,036 5 Merchandise 612.057 679,715 670,246 55,263 54,704 54,326 55,269 55,121 55,472 55,829 6 Services 237,749 258,828 263,661 22,570 22,321 22,721 22,844 22,857 23,151 23,207 7 Goods and services, imports -954,124 -1,043,273 -1,098,189 -93,979 -95,540 -96,358 -96,900 -99,368 -103,227 -104,220 8 Merchandise -803,327 -876,366 -917,178 -78,612 -79,876 -80,006 -80,603 -83,020 -86,651 -87,524 9 Services -150,797 -166,907 -181,011 -15,367 -15,664 -16,352 -16,297 -16,348 -16,576 -16,696 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 1999 AAsssseett 11999966 11999977 11999988 Feb. Mar. Apr. May June July Aug. Sept.p 1 Total 75,090 69,954 81,755 75,322 74,359 73,694 72,121 71,689 73,305 72,649r 73,413 2 Gold stock, including Exchange Stabilization Fund' 11,049 11,050 11,041 11,048 11,049 11,049 11,049 11,046 11,048 11,046r 11,046 3 Special drawing rights2,3 10,312 10,027 10,603 9,474 9,682 9,634 9,784 9,719 9,925 10,152 10,284 4 Reserve position in International Monetary Fund2 15,435 18,071 24,111 24,283 23,231 23,054 21,689 21,462 21,462 19,885 19,978 5 Foreign currencies4 38,294 30,809 36,001 30,517 30,397 29,957 29,599 29,462 30,870 31,566 32,105 1. Gold held "under earmark" at Federal Reserve Banks for foreign and international SDR holdings and reserve positions in the IMF also have been valued on this basis since July accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold 1974. stock is valued at $42.22 per fine troy ounce. 3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year 2. Special drawing rights (SDRs) are valued according to a technique adopted by the indicated, as follows; 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979— International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of $1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs. exchange rates for the currencies of member countries. From July 1974 through December 4. Valued at current market exchange rates. 1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1999 AAsssseett 11999966 11999977 11999988 Feb. Mar. Apr. May June July Aug. Sept.p 1 Deposits 167 457 167 200 166 260 157 409 257 166 243 Held in custody 2 U.S. Treasury securities2 638,049 620,885 607,574 615,139 610,649 606,662 606,579 611,372 619,004 626,669 634,086 3 Earmarked gold3 11,197 10,763 10,343 10,347 10,347 10,340 10,340 10,329 10,329 10,271 10,155 1. Excludes deposits and U.S. Treasury securities held for international and regional 3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not organizations. included in the gold stock of the United States. 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury securities, in each case measured at face (not market) value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A52 International Statistics • November 1999 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1999 IItteemm 11999966 11999977 Jan/ Feb/ Mar/ Apr/ Mayr June1 Julyp 1 Total1 776,505 759387 764,568 765,480 765,689 766,569 760,410 765,707 773,513 By type 2 Liabilities reported by banks in the United States 135,384 125,332 124,910 127,989 124,743 135,791 124,270 126,179 125,892 3 U.S. Treasury bills and certificates3 148,301 134,177 137,106 138,235 141,941 113355,,776655 136,199 113388,,551188 114477,,449922 U.S. Treasury bonds and notes 4 Marketable 428,004 432,127 433,590 429,891 425,046 418,350 421,573 421,970 420,197 5 Nonmarketable4 5,994 6,074 6,114 6,151 6,191 6,231 6,143 5,982 6,022 6 U.S. securities other than U.S. Treasury securities5 58,822 61,677 62,848 63,214 67,768 70,432 72,225 73,058 73,910 By area 7 Europe1 252,289 256,026 258,298 256,238 253,970 245,500 242,386 241,989 240,546 8 Canada 36,177 36,715 37,471 38,462 39,611 38,563 38,181 39,001 39,147 9 Latin America and Caribbean 96,942 79,422 73,987 75,986 72,828 81,379 81,075 76,828 77,851 10 400,144 400,171 407,756 408,606 412,353 414,051 411,739 421,282 430,050 11 9,981 10,059 10,144 9,838 9,906 9,656 9,326 8,377 8,376 12 Other countries 7,058 3,080 2,998 2,436 3,107 3,506 3,789 4,316 3,629 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 1994 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 1998 1999 IItteemm 11999955 11999966 11999977 Sept. Dec. Mar. June 1 Banks' liabilities 109,713 103,383 117,524 92,934 101,125 101,359 97,751 2 Banks' claims 74,016 66,018 83,038 67,901 78,152 80,642 67,864 3 Deposits 22,696 22,467 28,661 27,293 45,985 42,147 41,895 4 Other claims 51,320 43,551 54,377 40,608 32,167 38,495 25,969 5 Claims of banks' domestic customers2 6,145 10,978 8,191 8,453 20,718 11,039 23,474 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1999 IItteemm 11999966 11999977 11999988rr Jan.r Feb.r Mar.r Apr.r May June Julyp BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,162,148 1,283,027 1,347,176 1,332,512 1,340,815 1,337,831 1,334,253 1,352,608 1377,488 1,334,961 2 Banks' own liabilities 758,998 882,980 884,874 872,307 880,164 872,914 879,742 900,821 914,964 884,734 3 Demand deposits 27,034 31,344 29,556 33,039 31,906 30,913 31,180 32,184 36,322 43,189 4 Time deposits2 186,910 198,546 152,227 147,455 153,275 152,157 157,727 156,634 156,683 156,910 5 Other3 143,510 168,011 140,245 145,310 161,865 157,083 160,393 160,611 151,652 150,976 6 Own foreign offices4 401,544 485,079 562,846 546,503 533,118 532,761 530,442 551,392 570,307 533,659 7 Banks' custodial liabilities5 403,150 400,047 462,302 460,205 460,651 464,917 454,511 451,787 462,524 450,227 8 U.S. Treasury bills and certificates6 236,874 193,239 183,494 185,298 184,890 192,840 178,515 177,768 179,351 187,872 9 Other negotiable and readily transferable instruments7 72,011 93,641 141,103 137,448 134,110 133,311 129,051 124,100 123,246 121,567 10 Other 94,265 113,167 137,705 137,459 141,651 138,766 146,945 149,919 159,927 140,788 11 Nonmonetary international and regional organizations8 . . 13,972 11,690 11,833 13,839 19,707 15,337 15,669 13,997 17,453 17,943 12 Banks' own liabilities 13,355 11,486 10,850 12,829 18,949 14,621 14,932 13,250 15,468 16,444 13 Demand deposits 29 16 172 62 407 194 13 25 49 66 14 Time deposits2 5,784 5,466 5,793 6,161 7,215 6,856 6,324 5,840 7,231 7,380 15 Other3 7,542 6,004 4,885 6,606 11,327 7,571 8,595 7,385 8,188 8,998 16 Banks' custodial liabilities5 617 204 983 1,010 758 716 737 747 1,985 1,499 17 U.S. Treasury bills and certificates6 352 69 636 623 549 548 555 616 956 953 18 Other negotiable and readily transferable instruments7 265 133 347 387 207 168 182 131 1,029 533 19 Other 0 2 0 0 2 0 0 0 0 13 20 Official institutions9 312,019 283,685 259,509 262,016 266,224 266,684 271,556 260,469 264,697 273,384 21 Banks' own liabilities 79,406 102,028 80,251 78,682 79,510 76,996 86,061 79,452 78,444 80,419 22 Demand deposits 1,511 2,314 3,003 3,912 3,107 3,393 3,599 2,789 2,951 2,652 23 Time deposits2 33,336 41,396 29,602 24,176 25,988 23,840 29,109 27,372 26,650 26,864 24 Other3 44,559 58,318 47,646 50,594 50,415 49,763 53,353 49,291 48,843 50,903 25 Banks' custodial liabilities5 232,613 181,657 179,258 183,334 186,714 189,688 185,495 181,017 186,253 192,965 26 U.S. Treasury bills and certificates6 198,921 148,301 134,177 137,106 138,235 141,941 135,765 136,199 138,518 147,492 27 Other negotiable and readily transferable instruments7 33,266 33,151 44,407 45,640 47,679 47,174 49,443 44,586 47,582 45,094 28 Other 426 205 674 588 800 573 287 232 153 379 29 Banks10 694,835 815,247 885,047 864,429 852,867 851,749 848,081 881,368 905,865 849,363 30 Banks' own liabilities 562,898 641,447 675,998 656,592 646,831 648,753 646,370 676,341 691,091 652,582 31 Unaffiliated foreign banks 161,354 156,368 113,152 110,089 113,713 115,992 115,928 124,949 120,784 118,923 32 Demand deposits 13,692 16,767 14,071 15,327 15,275 13,985 13,344 15,957 15,813 14,092 33 Time deposits2 89,765 83,433 46,219 46,741 46,704 49,101 50,206 49,336 47,998 49,670 34 Other3 57,897 56,168 52,862 48,021 51,734 52,906 52,378 59,656 56,973 55,161 35 Own foreign offices4 401,544 485,079 562,846 546,503 533,118 532,761 530,442 551,392 570,307 533,659 36 Banks' custodial liabilities5 131,937 173,800 209,049 207,837 206,036 202,996 201,711 205,027 214,774 196,781 37 U.S. Treasury bills and certificates6 23,106 31,915 35,359 35,090 34,134 36,737 29,636 28,323 27,757 28,284 38 Other negotiable and readily transferable instruments7 17,027 35,393 45,102 44,087 40,108 37,304 34,959 35,580 36,983 37,459 39 Other 91,804 106,492 128,588 128,660 131,794 128,955 137,116 141,124 150,034 131,038 40 Other foreigners 141,322 172,405 190,787 192,228 202,017 204,061 198,947 196,774 189,473 194,271 41 Banks' own liabilities 103,339 128,019 117,775 124,204 134,874 132,544 132,379 131,778 129,961 135,289 42 Demand deposits 11,802 12,247 12,310 13,738 13,117 13,341 14,224 13,413 17,509 26,379 43 Time deposits2 58,025 68,251 70,613 70,377 73,368 72,360 72,088 74,086 74,804 72,996 44 Other3 33,512 47,521 34,852 40,089 48,389 46,843 46,067 44,279 37,648 35,914 45 Banks' custodial liabilities5 37,983 44,386 73,012 68,024 67,143 71,517 66,568 64,996 59,512 58,982 46 U.S. Treasury bills and certificates6 14,495 12,954 13,322 12,479 11,972 13,614 12,559 12,630 12,120 11,143 47 Other negotiable and readily transferable instruments7 21,453 24,964 51,247 47,334 46,116 48,665 44,467 43,803 37,652 38,481 48 Other 2,035 6,468 8,443 8,211 9,055 9,238 9,542 8,563 9,740 9,358 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 14,573 16,083 27,026 25,858 23,341 23,035 21,718 24,141 22,569 21,811 1. Reporting banks include all types of depository institutions as well as some brokers and 6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official dealers. Excludes bonds and notes of maturities longer than one year. institutions of foreign countries. 2. Excludes negotiable time certificates of deposit, which are included in "Other negotia- 7. Principally bankers acceptances, commercial paper, and negotiable time certificates of ble and readily transferable instruments." deposit. 3. Includes borrowing under repurchase agreements. 8. Principally the International Bank for Reconstruction and Development, the Inter- 4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiar- American Development Bank, and the Asian Development Bank. Excludes "holdings of ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory dollars" of the International Monetary Fund. agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists 9. Foreign central banks, foreign central governments, and the Bank for International principally of amounts owed to the head office or parent foreign bank, and to foreign Settlements. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. 10. Excludes central banks, which are included in "Official institutions." 5. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks for foreign customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A54 International Statistics • November 1999 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1999 IItteemm 11999966 11999977 11999988 Jan. Feb. Mar. Apr. May June July? AREA 50 Total, all foreigners 1,162,148 1,283,027 1,347,176r 1,332,512r 1,340,815r l,337,831r l,334,253r 1,352,608 1,377,488 1,334,961 51 Foreign countries 1,148,176 1,271,337 l,335,343r 1,318,673r l,321,108r 1,322,494r l,318,584r 1,338,611 1,360,035 1,317,018 52 Europe 376,590 419,672 427,367 429,636 436,33 lr 418,436r 409,512r 434,124 430,819 438,613 53 Austria 5,128 2,717 3,178 2,902 3,070 3,274 2,428 2,224 2,678 2,946 54 Belgium and Luxembourg 24,084 41,007 42,818 38,897 41,594 41,468 37,991 39,227 31,291 31,242 55 Denmark 2,565 1,514 1,437 1,200 1,826 1,992 1,300 1,267 961 1,143 56 Finland 1,958 2,246 1,862 1,989 1,643 1,800 1,655 1,645 1,384 1,358 57 France 35,078 46,607 44,616 44,444 47,617 47,937r 49,097r 48,328 45,234 42,622 58 Germany 24,660 23,737 21,357 20,315 23,111 23,747r 18,575r 24,689 21,999 23,951 59 Greece 1,835 1,552 2,066 2,195 2,509 2,447 2,237 2,691 2,737 3,168 60 Italy 10,946 11,378 7,103 6,155 6,684 5,744r 5,910r 5,943 6,192 6,426 61 Netherlands 11,110 7,385 10,793 10,580 14,792 12,273 ll,037r 11,752 12,152 12,206 62 Norway 1,288 317 710 1,065 1,102 1,022 l,181r 1,210 1,049 1,184 63 Portugal 3,562 2,262 3,235 2,543 2,225 2,237 2,277 2,461 2,439 2,237 64 Russia 7,623 7,968 2,439 2,231 2,438 2,500 2,693 2,794 2,871 2,756 65 Spain 17,707 18,989 15,775 12,843 13,457 9,336r 11,075r 8,083 8,678 7,700 66 Sweden 1,623 1,628 3,027 3,132 2,918 2,193 1,974 3,429 2,966 3,851 67 Switzerland 44,538 39,023 50,654 59,871 60,348 47,874 54,547 66,214 65,967 60,758 68 Turkey 6,738 4,054 4,286 5,105 5,045 5,639 5,787r 5,810 5,914 7,786 69 United Kingdom 153,420 181,904 181,554 177,240 173,543r 175,302r 169,795r 178,015 187,559 200,242 70 Yugoslavia" 206 239 233r 231r 287r 274r 221 242 254 289 71 Other Europe and other former U.S.S.R.12 22,521 25,145 30,224r 36,698r 32,122r 31,377r 29,732r 28,100 28,494 26,748 72 Canada 38,920 28,341 30,212 29,725 28,019 31,788 28,360' 28,543 29,951 29,394 73 Latin America and Caribbean 467,529 536,393 554,733r 540,664 538,465 551,711r 578,151r 591,047 605,801 550,028 74 Argentina 13,877 20,199 19,013 17,175 18,245 16,891 18,349r 16,428 17,555 16,998 7b Bahamas 88,895 112,217 118,085 121,606 118,727 119,207r 118,649' 118,122 123,524 122,465 76 Bermuda 5,527 6,911 6,839 8,969 8,370 7,514 6,957 7,951 9,168 9,410 77 Brazil 27,701 31,037 15,800 12,268 12,913 13,841 17,128 17,295 14,696 15,389 78 British West Indies 251,465 276,418 302,472 287,308 285,676 300,109r 322,011' 334,386 343,242 289,619 79 Chile 2,915 4,072 5,010 5,188 5,189 5,057 6,805 7,236 5,918 7,193 80 Colombia 3,256 3,652 4,616 4,535 4,462 4,636 4,710' 4,861 4,615 4,634 81 Cuba 21 66 62 64 62 63 64' 64 70 70 82 Ecuador 1,767 2,078 l,572r 1,525 1,513 1,606 1,688 1,800 1,930 1,975 83 Guatemala 1,282 1,494 l,333r 1,224 1,338 1,392 1,386 1,449 1,468 1,425 84 Jamaica 628 450 539 565 542 551 534 547 527 471 85 Mexico 31,240 33,972 37,148 35,965 35,891 36,622 36,004' 37,588 37,920 39,043 86 Netherlands Antilles 6,099 5,085 5,010 5,681 8,406 7,256 5,633 3,853 5,662 3,012 87 Panama 4,099 4,241 3,864 4,499 4,401 4,196 3,974 3,984 4,130 3,851 88 Peru 834 893 840 864 828 810 819 854 816 836 89 Uruguay 1,890 2,382 2,486 2,380 2,274 2,378 2,345' 2,331 2,552 2,319 90 Venezuela 17,363 21,601 19,894 20,250 19,354 19,149 20,512' 21,204 20,393 20,437 91 Other 8,670 9,625 10,150' 10,598 10,274 10,433 10,583' 11,094 11,615 10,881 92 249,083 269,379 307,49tf 301,541r 302,561' 330055,,448833 228877,,554455'' 269,026 227766,,991166 228833,,221177 China 93 Mainland 30,438 18,252 13,041 14,854 15,345 13,996 16,350 14,753 13,366 10,872 94 Taiwan 15,995 11,840 12,708 10,980 12,211 13,183 12,641' 10,795 11,409 12,482 95 Hong Kong 18,789 17,722 20,900' 22,844 25,510r 27,589 26,314' 25,728 24,575 24,200 96 India 3,930 4,567 5,250 5,279 5,241 6,189 5,979 5,520 5,421 5,864 9 7 Indonesia 2,298 3,554 8,282 7,909 6,172 6,675 7,434 6,211 6,530 7,309 98 Israel 6,051 6,281 7,749 7,287 7,598 8,246 7,037 7,004 6,144 5,076 99 Japan 117,316 143,401 168,563' 161,207 161,073 161,887 142,326' 132,605 143,635 145,651 100 Korea (South) 5,949 13,060 12,454 12,446 9,990 11,141 9,849 11,387 12,901 12,792 101 Philippines 3,378 3,250 3,324 2,318 2,482 2,362 2,440 2,492 2,273 2,177 102 Thailand 10,912 6,501 7,359 7,300 6,590 6,588 6,296 5,739 5,296 6,054 103 Middle Eastern oil-exporting countries13 16,285 14,959 15,609 14,655 16,157 15,433 14,497' 15,453 15,168 15,581 104 Other 17,742 25,992 32,251r 34,462r 34,192r 32,194 36,382' 31,339 30,198 35,159 105 8,116 10,347 8,905 9,110 8,658 8,463 7,874 7,713 7,485 7,508 106 Egypt 2,012 1,663 1,339 1,856 1,902 1,758 1,599 1,339 1,576 1,566 107 Morocco 112 138 97 98 73 85 90 72 101 115 108 South Africa 458 2,158 1,522 1,308 1,343 1,258 1,165 1,132 1,091 1,049 109 Zaire 10 10 5 6 13 9 4 12 16 13 110 Oil-exporting countries14 2,626 3,060 3,088 2,989 2,737 2,772 2,534 2,508 2,247 2,282 111 Other 2,898 3,318 2,854 2,853 2,590 2,581 2,482 2,650 2,454 2,483 112 Other 7,938 7,205 6,636 7,997 7,074r 6,613 7,142 8,158 9,063 8,258 113 Australia 6,479 6,304 5,495 6,854 5,552r 5,582 5,987 6,820 7,624 7,251 114 Other 1,459 901 1,141 1,143 1,522 1,031 1,155 1,338 1,439 1,007 115 Nonmonetary international and regional organizations .. 13,972 11,690 11,833 13,839 19,707r 15,337 15,669' 13,997 17,453 17,943 116 International15 12,099 10,517 10,221 11,787 17,080r 12,845 13,242' 11,689 1144,,445533 15,302 117 Latin American regional16 1,339 424 594 917 1,411 1,394 1,304 653 889988 819 118 Other regional17 534 749 1,018 1,135 1,216 1,098 1,123 1,655 2,102 1,822 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1999 AArreeaa oorr ccoouunnttrryy 11999966 11999977 11999988 Jan. Feb. Mar." Apr.r Mayr Juner Julyp 1 Total, all foreigners 599,925 708,225 735,124r 718,119r 712,828r 710,790 735,899 750,505 751,224 720,129 2 Foreign countries 597,321 705,762 731,507r 713,113r 707,402r 706,170 730,646 746,018 747,151 715,722 3 Europe 165,769 199,880 233,362r 225,776r 230,307r 226,441 236,306 265,798 300,777 292,697 4 Austria 1,662 1,354 1,043 2,634 1,824 2,759 2,389 2,902 2,514 3,855 5 Belgium and Luxembourg 6,727 6,641 7,187 5,599 7,073 5,451 7,533 9,811 10,028 9,214 Denmark 492 980 2,383 1,816 1,656 1,619 2,297 2,141 1,901 1,763 7 Finland 971 1,233 1,070 963 1,233 1,351 1,349 1,480 1,730 2,197 8 France 15,246 16,239 15,251 18,575 18,583 15,187 15,942 15,800 18,253 19,944 9 Germany 8,472 12,676 15,922 15,115 16,362 16,879 17,188 18,367 20,793 23,965 in Greece 568 402 575 533 637 554 651 585 537 628 n Italy 6,457 6,230 7,283 6,168 5,714 6,035 6,727 6,434 6,783 7,451 i? Netherlands 7,117 6,141 5,734 5,828 6,048 6,690 7,251 8,588 8,724 9,334 13 Norway 808 555 827 646r 561 596 970 753 717 821 14 Portugal 418 777 669 584 888 1,205 1,060 1,134 1,122 1,056 15 Russia 1,669 1,248 789 742 723r 971 787 1,016 768 831 16 Spain 3,211 2,942 5,735 4,560 4,260 3,041 2,949 4,516 6,178 4,606 17 Sweden 1,739 1,854 4,223 4,338 4,664 4,439 4,141 2,950 3,005 3,199 18 Switzerland 19,798 28,846 46,880 46,122 50,905 51,677 48,477 65,498 75,553 66,927 19 Turkey 1,109 1,558 1,982 1,796 l,871r 2,078 1,943 1,918 2,281 2,220 7,0 United Kingdom 85,234 103,143 106,349' 98,950" 97,422r 97,275 105,246 112,945 131,671 125,261 21 Yugoslavia2 115 52 53 53 54 54 55 54 54 50 22 Other Europe and other former U.S.S.R.3 3,956 7,009 9,407r 10,754r 9,829r 8,580 9,351 8,906 8,165 9,375 23 Canada 26,436 27,189 47,212 42,925 40,801 41,264 40,756 41,116 37,071 31,537 ?4 Latin America and Caribbean 274,153 343,730 342,564r 344,347 340,678 341,434 365,120 352,479 326,012 311,673 75 Argentina 7,400 8,924 9,553 9,713 10,184 10,399 10,075 10,318 10,772 10,492 76 Bahamas 71,871 89,379 96,455 93,000 91,104 88,639 84,023 78,480 71,993 77,048 77 Bermuda 4,129 8,782 4,969 5,547 6,033 4,096 4,426 6,276 6,111 7,813 78 Brazil 17,259 21,696 16,193 15,616 15,357 15,143 14,788 14,891 14,858 14,577 79 British West Indies 105,510 145,471 153,752r 158,010 155,326 162,867 193,306 184,928 166,497 146,862 30 Chile 5,136 7,913 8,261 8,232 8,085 8,082 7,810 7,545 7,531 7,152 31 Colombia 6,247 6,945 6,523 6,433 6,462 6,222 6,105 5,877 5,570 5,591 37 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 1,031 1,311 1,400 1,403 1,341 1,219 1,135 1,104 1,061 985 34 Guatemala 620 886 1,127 1,107 1,255 1,052 1,062 1,157 1,032 1,075 35 Jamaica 345 424 239 333 602 318 326 327 303 311 36 Mexico 18,425 19,428 21,143 21,128 21,564 20,532 19,434 19,314 18,633 18,977 37 Netherlands Antilles 25,209 17,838 6,779 7,403 6,571 6,661 5,711 5,867 5,483 5,101 38 Panama 2,786 4,364 3,584 3,549 3,390 3,320 4,329 3,298 3,351 3,064 39 Peru 2,720 3,491 3,260 3,364 3,353 3,232 3,111 3,053 2,974 2,710 40 Uruguay 589 629 1,126 997 934 838 772 724 1,050 1,105 41 Venezuela 1,702 2,129 3,089 3,312 3,684 3,506 3,138 3,245 3,479 3,501 42 Other 3,174 4,120 5,111 5,200 5,433 5,308 5,569 6,075 5,314 5,309 43 122,478 125,092 98,616r 90,806r 86,492r 88,048 79,232 77,631 74,692 72,240 China 44 Mainland 1,401 1,579 1,311 2,691 2,400 3,398 3,461 3,006 3,745 3,236 45 Taiwan 1,894 922 1,041 728 778 1,331 866 763 870 812 46 Hong Kong 12,802 13,991 9,080r 8,329r 6,806r 8,014 6,309 4,977 7,102 5,333 47 India 1,946 2,200 1,440 1,483 1,529 1,701 1,703 1,458 1,568 1,708 48 Indonesia 1,762 2,651 1,954 1,948 2,110 1,897 1,911 2,061 1,760 1,791 49 Israel 633 768 1,166 833 774 1,082 803 1,236 1,955 1,433 50 Japan 59,967 59,549 46,712 41,817 39,141 39,971 32,639 30,596 27,093 25,900 51 Korea (South) 18,901 18,162 8,238 8,679 8,479 9,119 11,119 12,326 11,317 12,753 57 Philippines 1,697 1,689 1,465 1,310 1,589 1,540 1,546 1,808 1,669 1,380 53 Thailand 2,679 2,259 1,806 1,759 1,708 1,720 1,732 1,623 1,850 1,683 54 Middle Eastern oil-exporting countries4 10,424 10,790 16,130r 14,312r 12,815r 12,151 11,669 10,569 10,127 9,396 55 Other 8,372 10,532 8,27s1 6,917r 8,363r 6,124 5,474 7,208 5,636 6,815 56 Africa 2,776 3,530 3,122 2,899 3,087 2,938 2,688 2,448 2,629 2,499 57 Egypt 247 247 257 302 264 260 228 221 241 252 58 Morocco 524 511 372 378 361 422 463 444 454 431 59 South Africa 584 805 643 802 933 798 567 640 724 598 60 Zaire 0 0 0 0 0 0 0 0 0 0 61 Oil-exporting countries5 420 1,212 936 516 625 325 257 288 340 297 62 Other 1,001 755 914 901 904 1,133 1,173 855 870 921 63 Other 5,709 6,341 6,631 6,360 6,037 6,045 6,544 6,546 5,970 5,076 64 Australia 4,577 5,300 6,167 5,866 5,367 5,638 6,060 6,093 5,636 4,811 65 Other 1,132 1,041 464 494 670 407 484 453 334 265 66 Nonmonetary international and regional organizations6. .. 2,604 2,463 3,617r 5,006 5,426 4,620 5,253 4,487 4,073 4,407 1. Reporting banks include all types of depository institutions as well as some brokers and 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab dealers. Emirates (Trucial States). 2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 5. Comprises Algeria, Gabon, Libya, and Nigeria. 3. Includes the Bank for International Settlements. Since December 1992, has included all 6. Excludes the Bank for International Settlements, which is included in "Other Europe." parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A56 International Statistics • November 1999 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 1999 TTyyppee ooff ccllaaiimm 11999966 11999977 11999988RR Jan. Feb.r Mar.r Apr.r Mayr Juner Julyp 1 Total 743,919 852,852 875,986 862,754 898,793 2 Banks' claims 599,925 708,225 735,124 718,119r 712,828 710,790 735,899 750,505 751,224 720,129 3 Foreign public borrowers 22,216 20,581 23,572 30,330R 31,515 34,773 35,807 36,634 37,336 38,457 4 Own foreign offices2 341,574 431,685 484,456 459,017 461,705 467,948 485,347 492,109 489,533 460,218 5 Unaffiliated foreign banks 113,682 109,230 106,087 106,523R 102,561 93,813 93,591 99,765 104,102 99,724 6 Deposits 33,826 30,995 27,208 30,564R 29,406 25,070 23,979 25,251 24,295 24,979 7 Other 79,856 78,235 78,879 75,959R 73,155 68,743 69,612 74,514 79,807 74,745 8 All other foreigners 122,453 146,729 121,009 122,249R 117,047 114,256 121,154 121,997 120,253 121,730 9 Claims of banks' domestic customers3 143,994 144,627 140,862 151,964 147,569 10 Deposits 77,657 73,110 78,491 91,380 93,597 11 Negotiable and readily transferable instruments4 51,207 53,967 48,752 47,990 43,616 12 Outstanding collections and other claims 15,130 17,550 13,619 12,594 10,356 MEMO 13 Customer liability on acceptances 10,388 9,624 4,519 4,485 4,437 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 39,661 33,816 39,978 38,941 39,055 33,038 33,474 31,210 29,501 32,857 !. 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 1998 1999 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa'' 11999955 11999966 11999977 Sept. Dec. Mar.r Junep 1 Total 224,932 258,106 276,550 281,342 250,547 242,463 259,219 By borrower 2 Maturity of one year or less 178,857 211,859 205,781 208,710 186,653 175,490 186,868 .3 Foreign public borrowers 14,995 15,411 12,081 14,842 13,699 20,921 24,558 4 All other foreigners 163,862 196,448 193,700 193,868 172,954 154,569 162,310 5 Maturity of more than one year 46,075 46,247 70,769 72,632 63,894 66,973 72.351 6 Foreign public borrowers 7,522 6,790 8,499 10,926 9,840 13,290 11,657 7 All other foreigners 38,553 39,457 62,270 61,706 54,054 53,683 60,694 By area Maturity of one year or less 8 Europe 55,622 55,690 58,294 68,980 68,684 66,887 84,731 9 Canada 6,751 8,339 9,917 8,795 10,947 7,816 6,690 10 Latin America and Caribbean 72,504 103,254 97,207 100,161 81,911 71,214 65,853 11 Asia 40,296 38,078 33,964 22,320 18,005 21,347 21,957 12 Africa 1,295 1,316 2,211 1,762 1,835 1,571 1,543 13 All other3 2,389 5,182 4,188 6,692 5,271 6,655 6,094 Maturity of more than one year 14 Europe 4,995 6,965 13,240 15,264 14,923 16,949 18,754 15 Canada 2,751 2,645 2,525 2,982 3,140 2,781 3,276 16 Latin America and Caribbean 27,681 24,943 42,049 39,165 33,443 33,539 36,902 17 Asia 7,941 9,392 10,235 12,147 10,018 10,972 10,471 18 Africa 1,421 1,361 1,236 1,170 1,233 1,160 1,105 19 All other3 1,286 941 1,484 1,904 1,137 1,572 1,843 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1997 1998 1999 Area or country 11999955 11999966 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 551.9 645.3 678.8 711.0 719.3 739.1 749.7r 738.9r 714.1r 678.3r 667.3 2 G-10 countries and Switzerland 206.0 228.3 250.0 247.8 242.8 249.0 278.3r 268.3r 255.8r 246.4r 255.7 3 Belgium and Luxembourg 13.6 11.7 9.4 11.4 11.0 11.2 16.2r 15.lr 13.4r 14.1r 14.8 4 France 19.4 16.6 17.9 20.2 15.4 15.5 20.5 19.9 18.4r 19.5 18.4 5 Germany 27.3 29.8 34.1 34.7 28.6 25.5 28.8 28.9 31.lr 32.0r 29.2 6 Italy 11.5 16.0 20.2 19.3 15.5 19.7 19.5 18.0r 11.5r 13.2 11.6 7 Netherlands 3.7 4.0 6.4 7.2 6.2 7.3 8.3 8.1 1.9' 8.9 10.9 8 Sweden 2.7 2.6 3.6 4.1 3.3 4.8 3.1 2.2r 2.3r 3.6 2.3 9 Switzerland 6.7 5.3 5.4 4.8 7.2 5.6 6.9 1.5' 8.3r 7.3 7.8 10 United Kingdom 82.4 104.7 110.6 108.3 113.4 120.1 134.9 130.4r 121.5r 110.6r 122.7 11 Canada 10.3 14.0 15.7 15.1 13.7 13.5 16.5 15.6r 16.7 15.7 16.5 12 Japan 28.5 23.7 26.8 22.6 28.6 25.8 23.7 22.8r 24.7r 21.3 21.6 13 Other industrialized countries 50.2 65.7 71.7 73.8 64.5 74.3 72.1 71.6r 68.5r 75.8r 76.5 14 Austria .9 1.1 1.5 1.7 1.5 1.7 1.9 2.1 1.4 2.5 2.7 15 Denmark 2.6 1.5 2.8 3.7 2.4 2.0 2.1 2.8 2.2r 3.2 2.8 16 Finland .8 .8 1.4 1.9 1.3 1.5 1.4 1.6 1.5r 1.4 .8 17 Greece 5.7 6.7 6.1 6.2 5.1 6.1 5.8 5.8r 6.0r 6.2 5.7 18 Norway 3.2 8.0 4.7 4.6 3.6 4.0 3.4 3.3r 3.2 2.9r 2.9 19 Portugal 1.3 .9 1.1 1.4 .9 .7 1.3 i.r 1.3 1.3 1.2 20 Spain 11.6 13.2 15.4 13.9 11.7 16.5 15.2 17.5 13.6r 14.3 15.8 21 Turkey 1.9 2.7 3.4 4.4 4.5 4.9 6.5 5.2 4.8 5.0 4.7 22 Other Western Europe 4.7 4.7 5.5 6.1 8.2 9.9 9.6 10.3 10.6r 10.1 10.1 23 South Africa 1.2 2.0 1.9 1.9 2.2 3.7 5.0 3.7 3.5 3.4 3.4 24 Australia 16.4 24.0 27.8 28.0 23.1 23.2 20.0 18.2 20.3 25.3r 26.5 25 OPEC2 22.1 19.7 22.3 22.9 26.0 25.7 25.3 25.9r 27.lr 26.0r 25.9 26 Ecuador .7 1.1 .9 1.2 1.3 1.3 1.2 1.2 1.2 1.1 1.0 27 Venezuela 2.7 2.4 2.1 2.2 2.5 3.3 3.2 3.1 3.2 3.4 3.1 28 Indonesia 4.8 5.2 5.6 6.5 6.7 5.5 5.1 4.7 4.8r 4.5r 4.9 29 Middle East countries 13.3 10.7 12.5 11.8 14.4 14.3 15.5 16.1 17.0r 16.6 16.4 30 African countries .6 .4 1.2 1.1 1.2 1.4 .3 .8 1.0 .4 .4 31 Non-OPEC developing countries 112.6 130.3 140.6 137.0 138.7 147.4 141.7r 140.6r 147.9r 143.7r 145.3 Latin America 32 Argentina 12.9 14.3 16.4 17.1 18.4 19.3 20.2 22.3 22.3 23.5 22.0 33 Brazil 13.7 20.7 27.3 26.1 28.6 32.4 21.2' 24.9 24.2 23.6 24.7 34 Chile 6.8 7.0 7.6 8.0 8.7 9.0 9.1 9.3r 8.3 8.5 8.2 35 Colombia 2.9 4.1 3.3 3.4 3.4 3.3 3.6 3.4 3.2 3.2 3.1 36 Mexico 17.3 16.2 16.6 16.4 17.4 17.7 17.9 18.4 25.3r 18.9 18.0 37 Peru .8 1.6 1.4 1.8 2.0 2.1 2.2 2.2 2.2 2.2 2.1 38 Other 2.8 3.3 3.4 3.6 4.1 4.0 4.4 4.6 5.4 5.4 5.5 Asia China 39 Mainland 1.8 2.5 3.6 4.3 3.2 4.2 3.9 2.8 3.0 5.1 5.3 40 Taiwan 9.4 10.3 10.6 9.7 9.0 11.7 11.3 12.2r 12.8 11.7r 11.9 41 India 4.4 4.3 5.3 4.9 4.9 5.0 4.9 5.3 5.3 5.5r 6.5 42 Israel .5 .5 .8 1.0 .7 .7 .9 .9 1.1 1.1 2.0 43 Korea (South) 19.1 21.5 16.3 16.2 15.6 16.2 14.5 12.9 13.7r 13.3 14.9 44 Malaysia 4.4 6.0 6.4 5.6 5.1 4.5 4.7 5.f 5.7r 5.9 5.9 45 Philippines 4.1 5.8 7.0 5.7 5.7 5.0 5.4 4.7 5.1 5.3 5.6 46 Thailand 4.9 5.7 7.3 6.2 5.4 5.5 4.9 5.3 4.6 4.5 4.1 47 Other Asia 4.5 4.1 4.7 4.5 4.3 4.2 3.7 3.1 2.9 3.0 2.8 Africa 48 Egypt .4 .7 1.1 .9 .9 1.0 1.5 1.7 1.3 1.4 1.4 49 Morocco .7 .7 .7 .7 .6 .6 .6 .5 .5 .5 .5 50 Zaire .0 .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .9 .9 .9 .9 .8 1.1 .8 1.1 1.0 1.2 .9 52 Eastern Europe 4.2 6.9 7.1 9.8 9.1 12.0 10.9 6.0 5.2 6.r 5.1 53 Russia4 1.0 3.7 4.2 5.1 5.1 7.5 6.8 2.8 2.2 2.2r 1.9 54 Other 3.2 3.2 2.9 4.7 4.0 4.6 4.1 3.2 3.1 3.9 3.2 55 Offshore banking centers 99.2 134.7 129.6 138.9 139.0 129.3 125.8r 121,9r 94. lr 83.0r 70.6 56 Bahamas 11.0 20.3 16.1 19.8 23.3 29.2 24.7 29.0r 33.0 30.2 16.1 57 Bermuda 6.3 4.5 7.9 9.8 9.8 9.0 9.3 10.4 4.6r 3.8 5.6 58 Cayman Islands and other British West Indies 32.4 37.2 35.1 45.7 43.4 24.9 34.2r 30.6r 15.4r 6.3r 7.0 59 Netherlands Antilles 10.3 26.1 15.8 21.7 14.6 14.0 10.5 6.0 2.6 2.7 1.2 60 Panama5 1.4 2.0 2.6 2.1 3.1 3.2 3.3 4.0 3.9r 3.9 3.9 61 Lebanon 62 Hong Kong, China 25.0 27.9 35.2 27.2 32.2 33^8 30.0 30^6 23.4r 22.8r 21.9 63 Singapore 13.1 16.7 16.7 12.7 12.7 15.0 13.5 11.1 11.2r 13.1 14.6 6 6 4 5 Mi O sc th el e l r a " n eous and unallocated7 57. . 6 1 59. . 6 1 57. . 6 3 80. . 8 1 99. . 1 1 101. . 3 1 95. . 7 2 104. . 5 2 115. . 5 2 r 91 .2 . 3' 88. . 1 1 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 no tcovered 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. Includes Canal Zone. branch of the same banking institution. 6. Foreign branch claims only. These data are on a gross claims basis and do not necessarily reflect the ultimate country 7. Includes New Zealand, Liberia, and international and regional organizations. risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks are available in the quarterly Country Exposure Lending Survey published by the Federal Financial Institutions Examination Council. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A58 International Statistics • November 1999 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1997 1998 1999 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999955 11999966 11999977rr Dec. Mar. June Sept. Dec. Mar.p 1 Total 46,448 61,782 57,382 57,382r 55,681r 51,433 49,279 46,570r 46,663 2 Payable in dollars 33,903 39,542 41,543 41,543' 41,601r 40,026 38,410 36,668' 34,030 3 Payable in foreign currencies 12,545 22,240 15,839 15,839r 14,080r 11,407 10,869 9,902 12,633 By type 4 Financial liabilities 24,241 33,049 26,877 26,877r 25,691r 22,322 19,331 19,255 22,458 5 Payable in dollars 12,903 11,913 12,630 12,630r 12,91 lr 11,988 9,812 10,371 11,225 6 Payable in foreign currencies 11,338 21,136 14,247 14,247r 12,780' 10,334 9,519 8,884 11,233 7 Commercial liabilities 22,207 28,733 30,505 30,505 29,990 29,111 29,948 27,315' 24,205 8 Trade payables 11,013 12,720 10,904 10,904 10,107 9,537 10,276 10,978' 9,999 9 Advance receipts and other liabilities 11,194 16,013 19,601 19,601 19,883 19,574 19,672 16,337 14,206 10 Payable in dollars 21,000 27,629 28,913 28,913 28,690 28,038 28,598 26,297' 22,805 11 Payable in foreign currencies 1,207 1,104 1,592 1,592 1,300 1,073 1,350 1,018 1,400 By area or country Financial liabilities 12 Europe 15,622 23,179 18,027 18,027r 18,793' 15,468 12,905 12,589 16,098 13 Belgium and Luxembourg 369 632 186 186 127 75 150 79 50 14 France 999 1,091 1,425 1,425' 1,545' 1,699 1,457 1,097 1,178 15 Germany 1,974 1,834 1,958 l,958r 2,518' 2,441 2,167 2,063 1,906 16 Netherlands 466 556 494 494 472 484 417 1,406 1,337 17 Switzerland 895 699 561 561r 130' 189 179 155 141 18 United Kingdom 10,138 17,161 11,667 ll,667r 12,185' 8,765 6,610 5,980 9,729 19 Canada 632 1,401 2,374 2,374r 1,027' 539 389 693 781 20 Latin America and Caribbean 1,783 1,668 1,386 1,386 965 1,320 1,351 1,495 11,,552288 21 Bahamas 59 236 141 141 17 6 1 7 11 22 Bermuda 147 50 229 229 86 49 73 101 78 23 Brazil 57 78 143 143 91 76 154 152 137 24 British West Indies 866 1,030 604 604 517 845 834 957 1,064 25 Mexico 12 17 26 26 21 51 23 59 22 26 Venezuela 2 1 1 1 1 1 1 2 2 27 Asia 5,988 6,423 4,387 4,387r 4,197' 4,315 4,005 3,785 3,475 28 Japan 5,436 5,869 4,102 4,102r 3,964' 3,869 3,754 3,612 3,337 29 Middle Eastern oil-exporting countries' 27 25 27 27' 18' 0 0 0 1 30 Africa 150 38 60 60 33 29 31 28 31 31 Oil-exporting countries2 122 0 0 0 0 0 0 0 2 32 All other3 66 340 643 643 676 651 650 665 545 Commercial liabilities 33 Europe 7,700 9,767 10,228 10,228 9,951 9,987 11,010 10,030' 8,580 34 Belgium and Luxembourg 331 479 666 666 565 557 623 278 229 35 France 481 680 764 764 840 612 740 920 654 36 Germany 767 1,002 1,274 1,274 1,068 1,219 1,408 1,392' 1,088 37 Netherlands 500 766 439 439 443 485 440 429 361 38 Switzerland 413 624 375 375 407 349 507 499 535 39 United Kingdom 3,568 4,303 4,086 4,086 4,041 3,743 4,286 3,697 3,008 40 Canada 1,040 1,090 1,175 1,175 1,347 1,206 1,504 1,390 1,597 41 Latin America and Caribbean 1,740 2,574 2,176 2,176 2,051 2,285 1,840 1,618' 1,612 42 Bahamas 1 63 16 16 27 14 48 14 11 43 Bermuda 205 297 203 203 174 209 168 198 225 44 Brazil 98 196 220 220 249 246 256 152 107 45 British West Indies 56 14 12 12 5 27 5 10 7 46 Mexico 416 665 565 565 520 557 511 347 437 47 Venezuela 221 328 261 261 219 196 230 202 155 48 Asia 10,421 13,422 14,966 14,966 14,672 13,611 13,539 12,342' 10,428 49 Japan 3,315 4,614 4,500 4,500 4,372 3,995 3,779 3,827' 2,715 50 Middle Eastern oil-exporting countries' 1,912 2,168 3,111 3,111 3,138 3,194 3,582 2,852' 2,479 51 Africa 619 1,040 874 874 833 921 810 794 727 52 Oil-exporting countries2 254 532 408 408 376 354 372 393 377 53 Other3 687 840 1,086 1,086 1,136 1,101 1,245 1,141 1,261 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 1997 1998 1999 Type of claim, and area or country 11999955 11999966 11999977 Dec. Mar. June Sept. Dec. Mar.p 1 Total 52,509 65,897 68,128 68,128 71,004 63,188r 67,976 77,462r 68,973 2 Payable in dollars 48,711 59,156 62,173 62,173 65,359 57,587r 62,034 72,171' 63,988 3 Payable in foreign currencies 3,798 6,741 5,955 5,955 5,645 5,601 5,942 5,29 lr 4,985 By type 4 Financial claims 27,398 37,523 36,959 36,959 40,301 32,341r 37,262 46,260r 38,136 5 Deposits 15,133 21,624 22,909 22,909 20,863 14,762 15,406 30,199r 18,686 6 Payable in dollars 14,654 20,852 21,060 21,060 19,155 13,084 13,374 28,549 17,101 7 Payable in foreign currencies 479 772 1,849 1,849 1,708 1,678 2,032 1,650r 1,585 8 Other financial claims 12,265 15,899 14,050 14,050 19,438 17,579r 21,856 16,061r 19,450 9 Payable in dollars 10,976 12,374 11,806 11,806 16,981 14,904r 19,867 14,049 17,419 10 Payable in foreign currencies 1,289 3,525 2,244 2,244 2,457 2,675 1,989 2,012r 2,031 11 Commercial claims 25,111 28,374 31,169 31,169 30,703 30,847 30,714 3I,202r 30,837 12 Trade receivables 22,998 25,751 27,536 27,536 26,888 26,764 26,330 27,202r 26,724 13 Advance payments and other claims .... 2,113 2,623 3,633 3,633 3,815 4,083 4,384 4,000r 4,113 14 Payable in dollars 23,081 25,930 29,307 29,307 29,223 29,599 28,793 29,573r 29,468 15 Payable in foreign currencies 2,030 2,444 1,862 1,862 1,480 1,248 1,921 1,629 1,369 By area or country Financial claims 16 Europe 7,609 11,085 14,999 14,999 14,187 14,091r 14,473 12,294r 12,800 17 Belgium and Luxembourg 193 185 406 406 378 518 496 661 469 18 France 803 694 1,015 1,015 902 796r 1,140 864r 913 19 Germany 436 276 427 427 393 290 359 304 302 20 Netherlands 517 493 677 677 911 975 867 875 955 21 Switzerland 498 474 434 434 401 403 409 414 530 22 United Kingdom 4,303 7,922 10,337 10,337 9,289 9,639 9,849 7,766r 8,357 23 Canada 2,851 3,442 3,313 3,313 4,688 3,020 4,090 2,503r 3,111 24 Latin America and Caribbean 14,500 20,032 15,543 15,543 18,207 11,967 15,758 27,714 18,825 25 Bahamas 1,965 1,553 2,308 2,308 1,316 1,306 2,105 403 666 26 Bermuda 81 140 108 108 66 48 63 39 41 27 Brazil 830 1,468 1,313 1,313 1,408 1,394 710 835 1,112 28 British West Indies 10,393 15,536 10,462 10,462 13,551 7,349 10,960 24,388 14,621 29 Mexico 554 457 537 537 967 1,089 1,122 1,245 1,583 30 Venezuela 32 31 36 36 47 57 50 55 72 31 Asia 1,579 2,221 2,133 2,133 2,174 2,376 2,121 3,027r 2,648 32 Japan 871 1,035 823 823 791 886 928 1,194 942 33 Middle Eastern oil-exporting countries 3 22 11 11 9 12 13 9 8 34 Africa 276 174 319 319 325 155 157 159 174 5 14 15 15 16 15 16 16 26 35 Oil-exporting countries 583 569 652 652 720 732 663 563r 578 36 All other3 Commercial claims 9,824 10,443 12,120 12,120 12,854 12,882 13,029 13,246r 12,782 37 Europe 231 226 328 328 232 216 219 238 281 38 Belgium and Luxembourg 1,830 1,644 1,796 1,796 1,939 1,955 2,098 2,171r 2,173 39 France 1,070 1,337 1,614 1,614 1,670 1,757 1,502 1,822 1,599 40 Germany 452 562 597 597 534 492 463 467 415 41 Netherlands 520 642 554 554 476 418 546 483r 367 42 Switzerland 2,656 2,946 3,660 3,660 4,828 4,664 4,681 4,769 4,529 43 United Kingdom 44 Canada 1,951 2,165 2,660 2,660 2,882 2,779 2,291 2,617r 2,983 45 Latin America and Caribbean 4,364 5,276 5,750 5,750 5,481 6,082 5,773 6,296r 5,930 46 Bahamas 30 35 27 27 13 12 39 24 10 47 Bermuda 272 275 244 244 238 359 173 536 500 48 Brazil 898 1,303 1,162 1,162 1,128 1,183 1,062 1,024r 936 49 British West Indies 79 190 109 109 88 110 91 104 117 50 Mexico 993 1,128 1,392 1,392 1,302 1,462 1,356 1,545 1,431 51 Venezuela 285 357 576 576 441 585 566 401 361 52 Asia 7,312 8,376 8,713 8,713 7,638 7,367 7,190 7,192r 7,080 53 Japan 1,870 2,003 1,976 1,976 1,713 1,757 1,789 1,681 1,486 54 Middle Eastern oil-exporting countries' 974 971 1,107 1,107 987 1,127 967 l,135r 1,286 55 Africa 654 746 680 680 613 657 740 711r 685 56 Oil-exporting countries 87 166 119 119 122 116 128 165 116 57 Other3 1,006 1,368 1,246 1,246 1,235 1,080 1,691 1,140r 1,377 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A60 International Statistics • November 1999 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1999 1999 Transaction, and area or country 1997 1998 J J a u n ly .- Jan. Feb.r Mar.r Apr.1 May' June' JulyP U.S. corporate securities STOCKS 1 Foreign purchases 1,097,958 1,574,185 1,272,608 156,181' 159,759 179,894 223,006 185,819 179,986 187,963 2 Foreign sales 1,028,361 1,524,189 1,215,938 152,704' 155,650 177,007 205,493 177,326 168,094 179,664 3 Net purchases, or sales (-) 69,597 49,996 56,670 3,477r 4,109 2,887 17,513 8,493 11,892 8,299 4 Foreign countries 69,754 50,376 56,682 3,463r 4,109 2,887 17,497 8,504 11,878 8,344 5 Europe 62,688 68,124 49,623 6,048 6,403 6,563 11,493 5,260 7,663 6,193 6 France 6,641 5,672 2,751 537 -175 1,199 534 -206 919 -57 7 Germany 9,059 9,195 6,214 1,035 872 480 1,814 971 1,376 -334 8 Netherlands 3,831 8,249 4,884 86 956 1,103 417 738 1,181 403 9 Switzerland 7,848 5,001 3,181 -10 582 1,551 1,934 481 1,452 -2,809 10 United Kingdom 22,478 23,952 22,682 3,893 2,833 575 3,758 1,822 1,300 8,501 11 Canada -1,406 -4,689 1,954 728 248 723 -129 -159 401 142 12 Latin America and Caribbean 5,203 760 8,909 -1,279 -1,279 -1,415 5,516 2,004 2,459 2,903 13 Middle East1 383 -1,449 -467 113' -733 298 -355 419 64 -273 14 Other Asia 2,072 -12,347 -4,112 -2,306 -630 -3,257 905 574 1,271 -669 15 Japan 4,787 -1,171 -734 -616 -344 -1,925 1,458 464 681 -452 16 Africa 472 639 390 22 11 87 37 138 81 14 17 Other countries 342 -662 385 137 89 -112 30 268 -61 34 18 Nonmonetary international and regional organizations -157 -380 -12 14 0 0 16 -11 14 -45 BONDS2 19 Foreign purchases 610,116 905,782 500,519 68,565' 75,169 77,101 70,044 66,558 67,569 75,513 20 Foreign sales 475,958 727,044 358,908 53,831' 56,187 52,331 47,516 49,145 52,197 47,701 21 Net purchases, or sales (-) 134,158 178,738 141,611 14,734r 18,982 24,770 22,528 17,413 15,372 27,812 22 Foreign countries 133,595 179,081 141,363 14,733r 18,941 24,974 22,468 17,326 15,383 27,538 23 Europe 71,631 130,057 81,215 4,765' 14,402 12,832 10,527 10,911 9,553 18,225 24 France 3,300 3,386 1,312 145 124 22 -36 352 258 447 25 Germany 2,742 4,369 4,638 398 1,268 190 -43 797 321 1,707 26 Netherlands 3,576 3,443 1,604 60 329 418 106 168 187 336 27 Switzerland 187 4,826 2,484 403 535 272 467 128 -26 705 28 United Kingdom 54,134 99,637 60,871 2,611' 10,803 9,268 8,617 8,310 7,651 13,611 29 Canada 6,264 6,121 2,109 100 475 640 319 413 184 -22 30 Latin America and Caribbean 34,733 23,938 32,670 6,382 2,057 5,203 5,967 3,382 4,603 5,076 31 Middle East1 2,155 4,997 1,960 1,436 314 859 364 -717 -114 -182 32 Other Asia 16,996 12,662 22,220 2,032 1,439 5,132 4,904 3,224 1,458 4,031 33 Japan 9,357 8,384 5,860 561 165 589 1,215 0 310 3,020 34 Africa 1,005 190 795 40 266 261 331 82 -307 122 3b Other countries 811 1,116 394 -22 -12 47 56 31 6 288 36 Nonmonetary international and regional organizations 563 -343 248 1 41 -204 60 87 -11 274 Foreign securities 37 Stocks, net purchases, or sales (-) -40,942 6,227 20,347 3,308 3,085 1,845 5,583 2,500 6,234 -2,208 38 Foreign purchases 756,015 929,923 635,152 77,931 73,948 95,216 98,501 86,179 97,428 105,949 39 Foreign sales 796,957 923,696 614,805 74,623 70,863 93,371 92,918 83,679 91,194 108,157 40 Bonds, net purchases, or sales (-) -48,171 -17,350 -112 -2,304 -255 1,710 -5,147 -499 8,969 --22,,558866 41 Foreign purchases 1,451,704 1,328,281 491,848 56,072 66,198 76,129 73,376 72,372 79,013 6688,,668888 42 Foreign sales 1,499,875 1,345,631 491,960 58,376 66,453 74,419 78,523 72,871 70,044 71,274 43 Net purchases, or sales (—), of stocks and bonds .... -89,113 -11,123 20,235 1,004 2,830 3,555 436 2,001 15,203 -4,794 44 Foreign countries -88,921 -10,778 20,035 883 2,554 3,595 554 2,101 15,233 -4,885 45 Europe -29,874 12,632 50,248 406 6,431 14,014 9,710 5,846 16,749 -2,908 46 Canada -3,085 -1,901 -1,799 -310 -551 -131 -449 -537 1,201 -1,022 47 Latin America and Caribbean -25,258 -13,798 -8,501 2,355 491 -3,586 -4,353 -2,306 -2,770 1,668 48 -25,123 -3,992 -19,522 -1,558 -3,344 -7,155 -3,946 -495 194 -3,218 49 Japan -10,001 -1,742 -20.101 141 -3,390 -7,250 -3,445 -704 -1,241 -4,212 50 Africa -3,293 -1,225 67 22 -25 -16 20 112 -25 -21 51 Other countries -2,288 -2,494 -458 -32 -448 469 -428 -519 -116 616 52 Nonmonetary international and regional organizations -192 -345 200 121 276 -40 -118 -100 -30 91 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 A61 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (—) during period 1999 1999 AArreeaa oorr ccoouunnttrryy 11999977 11999988 Jan.— Jan. Feb. Mar. Apr. May June Julyp July 1 Total estimated 184,171 49,039 -21,670 -4,165 -14,623 1,532 -3,271 5,638 -609 -6,172 2 Foreign countries 183,688 46,570 -21,439 -4,107 -14,182 1,762 -3,257 5,316 -815 -6,156 3 Europe 144,921 23,797 -34,331 2,530 -7,354 1,342 -15,394 -3,997 -5,796 -5,662 4 Belgium and Luxembourg 3,427 3,805 1,308 -229 204 -54 476 121 753 37 5 Germany 22,471 144 615 -268 217 428 -653 -290 538 643 6 Netherlands 1,746 -5,533 1,200 2,347 -584 197 -256 797 -77 -1,224 7 Sweden -465 1,486 188 163 -228 386 -462 -21 579 -229 8 Switzerland 6,028 5,240 -3,248 -2,171 47 -1,457 -302 -121 971 -215 9 United Kingdom 98,253 14,384 -19,816 1,729 -5,721 1,129 -6,672 -4,528 -7,215 1,462 10 Other Europe and former U.S.S.R 13,461 4,271 -14,578 959 -1,289 713 -7,525 45 -1,345 -6,136 11 Canada -811 615 5,238 -1,729 1,127 213 1,205 2,580 460 1,382 12 Latin America and Caribbean -2,554 -3,662 -4,699 -5,621 -6,037 1,100 5,200 1,364 -1,403 698 1.3 Venezuela 655 59 191 -17 463 -445 2 88 -31 131 14 Other Latin America and Caribbean -549 9,523 -3,132 -1,979 -2,024 -2,570 3,654 -123 -52 -38 15 Netherlands Antilles -2,660 -13,244 -1,758 -3,625 -4,476 4,115 1,544 1,399 -1,320 605 16 Asia 39,567 27,433 13,130 1,299 -2,216 -1,714 5,973 5,631 6,489 -2,332 17 Japan 20,360 13,048 7,701 -2,134 -1,124 -1,311 6,475 1,284 4,905 -394 18 Africa 1,524 751 -674 17 -6 -52 -11 -198 -246 -178 19 Other 1,041 -2,364 -103 -603 304 873 -230 -64 -319 -64 20 Nonmonetary international and regional organizations 483 2,469 -231 -58 -441 -230 -14 322 206 -16 21 International 621 1,502 -525 -77 -371 -206 15 223 -8 -101 22 Latin American regional 170 199 504 3 1 -5 0 122 192 191 MEMO 23 Foreign countries 183,688 46,570 -21,439 -4,107 -14,182 1,762 -3,257 5,316 -815 -6,156 24 Official institutions 43,959 4,123 -11,930 1,463 -3,699 —4,845r -6,696 3,223 397 -1,773 25 Other foreign 139,729 42,447 -9,509 -5,570 -10,483 6,607r 3,439 2,093 -1,212 -4,383 Oil-exporting countries 26 Middle East2 7,636 -16,554 7,081 3,069 -618 1,478 65 2,887 238 -38 27 -12 2 0 0 0 0 0 0 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A62 International Statistics • November 1999 3.28 FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U.S. DOLLAR1 Currency units per dollar except as noted 1999 IItteemm 11999966 11999977 11999988 Apr. May Juner July Aug. Sept. Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 78.28 74.37 62.91 64.20 66.28 65.63 65.62 64.46 64.95 2 Austria/schilling 10.589 12.206 12.379 n.a. n.a. n.a. n.a. n.a. n.a. 3 Belgium/franc 30.97 35.81 36.31 n.a. n.a. n.a. n.a. n.a. n.a. 4 Brazil/real 1.0051 1.0779 1.1605 1.7025 1.6853 1.7669 1.8023 1.8859 1.8987 5 Canada/dollar 1.3638 1.3849 1.4836 1.4881 1.4611 1.4695 1.4890 1.4932 1.4771 6 China, P.R./yuan 8.3389 8.3193 8.3008 8.2792 8.2785 8.2780 8.2776 8.2772 8.2774 7 Denmark/krone 5.8003 6.6092 6.7030 6.9475 6.9925 7.1643 7.1792 7.0144 7.0828 8 European Monetary Union/euro3 n.a. n.a. n.a. 1.0701 1.0630 1.0377 1.0370 1.0605 1.0497 9 Finland/markka 4.5948 5.1956 5.3473 n.a. n.a. n.a. n.a. n.a. n.a. 10 France/franc 5.1158 5.8393 5.8995 n.a. n.a. n.a. n.a. n.a. n.a. 11 Germany/deutsche mark 1.5049 1.7348 1.7597 n.a. n.a. n.a. n.a. n.a. n.a. 12 Greece/drachma 240.82 273.28 295.70 304.26 305.96 312.49 313.52 307.84 311.68 13 Hong Kong/dollar 7.7345 7.7431 7.7467 7.7495 7.7531 7.7575 7.7603 7.7638 7.7665 14 India/rupee 35.51 36.36 41.36 42.80 42.86 43.21 43.36 43.50 43.60 15 Ireland/pound2 159.95 151.63 142.48 n.a. n.a. n.a. n.a. n.a. n.a. 16 1,542.76 1,703.81 1,736.85 n.a. n.a. n.a. n.a. n.a. n.a. 17 108.78 121.06 130.99 119.77 122.00 120.72 119.33 113.23 106.88 18 Malaysia/ringgit 2.5154 2.8173 3.9254 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 19 Mexico/peso 7.600 7.918 9.152 9.430 9.396 9.515 9.370 9.398 9.341 ?n Netherlands/guilder 1.6863 1.9525 1.9837 n.a. n.a. n.a. n.a. n.a. n.a. ?1 New Zealand/dollar2 68.77 66.25 53.61 54.27 55.30 53.25 52.61 52.59 52.30 22 Norway/krone 6.4594 7.0857 7.5521 7.7750 7.7496 7.8749 7.9029 7.8036 7.8361 23 Portugal/escudo 154.28 175.44 180.25 n.a. n.a. n.a. n.a. n.a. n.a. ?4 Singapore/dollar 1.4100 1.4857 1.6722 1.7134 1.7122 1.7107 1.6958 1.6787 1.6965 75 South Africa/rand 4.3011 4.6072 5.5417 6.1186 6.1809 6.0880 6.1182 6.1302 6.0563 76 South Korea/won 805.00 947.65 1,400.40 1,209.96 1,197.92 1,168.91 1,189.10 1,198.31 1,201.00 77 126.68 146.53 149.41 n.a. n.a. n.a. n.a. n.a. n.a. 78 Sri Lanka/rupee 55.289 59.026 65.006 69.588 70.581 71.211 71.912 71.868 71.942 79 Sweden/krona 6.7082 7.6446 7.9522 8.3293 8.4432 8.5065 8.4431 8.2589 8.2264 30 Switzerland/franc 1.2361 1.4514 1.4506 1.4971 1.5078 1.5374 1.5474 1.5093 1.5262 31 Taiwan/dollar 27.468 28.775 33.547 32.965 32.791 32.525 32.338 32.076 31.848 37 Thailand/baht 25.359 31.072 41.262 37.631 37.051 36.926 37.143 38.060 40.060 33 United Kingdom/pound2 156.07 163.76 165.73 160.89 161.54 159.50 157.51 160.58 162.47 34 Venezuela/bolivar 417.19 488.39 548.39 587.79 596.48 603.29 611.17 615.95 625.41 Indexes4 NOMINAL 35 Broad (January 1997 = 100)' 97.43 104.47 116.25 117.15 116.91 117.45 117.48 116.46 115.76 36 Major currencies (March 1973= 100)6 85.23 91.85 96.52 95.76 95.79 96.56 96.78 94.74 93.24 37 Other important trading partners (January 1997=100)7 98.25 104.67 125.70 129.24 128.55 128.56 128.26 129.26 130.19 REAL 38 Broad (March 1973 = 100)5 86.97r 91.6 lr 99.57r 99.59r 99.23r 99.67 99.92 98.98 98.34 39 Major currencies (March 1973 = 100)6 85.75r 93.1 r 98.22r 98.62r 98.53r 99.33 99.78 97.62 96.27 40 Other important trading partners (March 1973 = 100)1 96.26r 97.35r 110.08r 109.52r 108.72r 108.70 108.66 109.41 109.80 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. The December 1999 Bulletin will contain revised index values resulting from the annual table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, revision to the trade weights. For more information on the indexes of the foreign exchange see inside front cover. value of the dollar, see Federal Reserve Bulletin, vol. 84 (October 1998), pp. 811-18. 2. Value in U.S. cents. 5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies 3. As of January 1999, the euro is reported in place of the individual euro area currencies. of a broad group of U.S. trading partners. The weight for each currency is computed as an These currency rates can be derived from the euro rate by using the fixed conversion rates (in average of U.S. bilateral import shares from and export shares to the issuing country and of a currencies per euro) as shown below: measure of the importance to U.S. exporters of that country's trade in third country markets. 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of Euro equals broad index currencies that circulate widely outside the country of issue. The weight for each 13.7603 Austrian schillings 1936.27 Italian lire currency is its broad index weight scaled so that the weights of the subset of currencies in the 40.3399 Belgian francs 40.3399 Luxembourg francs index sum to one. 5.94573 Finnish markkas 2.20371 Netherlands guilders 7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 6.55957 French francs 200.482 Portuguese escudos broad index currencies that do not circulate widely outside the country of issue. The weight 1.95583 German marks 166.386 Spanish pesetas for each currency is its broad index weight scaled so that the weights of the subset of .787564 Irish pounds currencies in the index sum to one. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
63 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 1998 A72 SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30, 1998 February 1999 A64 December 31, 1998 May 1999 A64 March 31, 1999 August 1999 A64 June 30, 1999 November 1999 A64 Terms of lending at commercial banks November 1998 February 1999 A66 February 1999 May 1999 A66 May 1999 August 1999 A66 August 1999 November 1999 A66 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1998 February 1999 A72 December 31, 1998 May 1999 A72 March 31, 1999 August 1999 A72 June 30, 1999 November 1999 A72 Pro forma balance sheet and income statements for priced service operations September 30, 1998 January 1999 A64 March 31, 1999 July 1999 A64 June 30, 1999 October 1999 A64 Residential lending reported under the Home Mortgage Disclosure Act 1997 September 1998 A64 1998 September 1999 A64 Disposition of applications for private mortgage insurance 1997 September 1998 A72 1998 September 1999 A73 Small loans to businesses and farms 1997 September 1998 A76 1998 September 1999 A76 Community development lending reported under the Community Reinvestment Act 1997 September 1998 A79 1998 September 1999 A79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A64 Special Tables • November 1999 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 1999 Millions of dollars except as noted Banks with foreign offices1 Bank o s f f w ic i e t s h o d n o l m y2 e stic DDoommeessttiicc IItteemm TToottaall ttoottaall Total Domestic Over 100 Under 100 1 Total assets3 5,408,335 4,720,049 3,731,641 3,043,355 1,407,307 269,387 2 Cash and balances due from depository institutions 328,511 236,979 255,412 163,880 59,939 13,160 3 Cash items in process of collection, unposted debits, and currency and coin 119,153 116,192 30,524 f 4 Cash items in process of collection and unposted debits n.a. 85 ,235 18,348 1 5 Currency and coin n.a. n.a. 26,957 12,175 n.a. 6 Balances due from depository institutions in the United States 31,949 25,907 18,801 1 7 Balances due from banks in foreign countries and foreign central banks n.a. 88,785 6,425 3,047 1 8 Balances due from Federal Reserve Banks 15,525 15,355 7,567 t MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) 32,648 n.a. 14,239 13,795 4,614 10 Total securities, held to-maturity (amortized cost) and available-for-sale (fair value) 991,170 561,922 356,258 72,990 11 U.S. Treasury securities 115,491 68,405 37,628 9,458 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 192,288 64,044 95,468 32,777 13 Issued by U.S. government agencies 5,778 2,868 2,165 745 14 Issued by U.S. government-sponsored agencies 186,510 61,176 93,303 32,032 15 Securities issued by states and political subdivisions in the United States 87,621 26,525 48,050 13,046 16 General obligations 65,137 19,327 36,403 9,407 17 Revenue obligations 21,895 6,839 11,461 3,596 18 Industrial development and similar obligations 588 359 186 43 19 Mortgage-backed securities (MBS) 440,600 286,253 139,885 14,463 20 Pass-through securities 278,835 190,118 79,006 9,710 21 Guaranteed by GNMA 73,412 n.a. 43,846 n.a. 26,137 3,430 22 Issued by FNMA and FHLMC 204,221 145,484 52,492 6,245 23 Privately issued ,201 787 378 36 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 161,766 96,135 60,878 4,753 25 Issued or guaranteed by FNMA, FHLMC or GNMA 115,695 67,607 43,726 4,362 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 2,911 1,699 1,050 162 27 All other mortgage-backed securities 43,161 26,829 16,102 229 28 Other debt securities 122,781 95,059 25,799 1,923 29 Other domestic debt securities n.a. 43,119 25,515 n.a. 30 Foreign debt securities n.a. 51,941 284 n.a. 31 Equity securities 32,388 21.636 9,428 1,323 32 Investments in mutual funds and other equity securities with readily determinable fair value 10,391 7,620 2,350 421 33 All other equity securities 21,997 14,016 7,078 903 34 Federal funds sold and securities purchased under agreements to resell 258,255 204,773 209,406 155,925 36,040 12,808 35 Total loans and lease-financing receivables, gross 3,275,971 2,972,133 2,218,054 1,914,215 896,175 161,743 36 LESS: Unearned income on loans 3,248 2,535 1,624 911 1,202 423 37 Total loans and leases (net of unearned income) 3,272,723 2,969,598 2,216,430 1,913,305 894,973 161,320 38 LESS: Allowance for loan and lease losses 56,244 n a. 38,392 n.a. 15,528 2,324 39 LESS: Allocated transfer risk reserves 132 n a. 131 n.a. 0 0 40 EQUALS: Total loans and leases, net 3,216,347 n a. 2,177,906 n.a. 879.445 158,996 Total loans and leases, gross, by category 41 Loans secured by real estate 1,361,874 1,330,791 776688,,113333 737,050 550022,,225500 9911,,449911 42 Construction and land development 116,859 f 60,434 49,140 7,286 43 30,544 5,308 14,014 11,222 44 One- to four-family residential properties 1 747,911 1 454,082 248,940 44,889 45 Revolving, open-end loans, extended under lines of credit n.a. 91,725 n.a. 63,705 25,863 2,157 4 4 4 6 7 8 M No u A n lt l f i l a f r a o m m th i e n ly r o n l ( o r f e a iv s n i e s d e o n r ti m al o r p e r ) o r p e e s r i t d ie e s n tial properties T I1 6 3 4 5 8 7 6 8 , , , 1 1 3 6 8 1 0 7 7 • 1 1 3 1 2 9 9 5 0 2 , , , 3 2 0 7 2 0 7 0 6 2 1 2 1 7 3 9 0 , , , 0 9 1 7 5 9 7 9 8 4 2 2 6 1 , , , 7 1 9 3 1 8 2 3 1 49 Loans to depository institutions 116,205 95,743 112,674 92,213 3,415 115 50 Commercial banks in the United States n .a. n a. 61,716 61,236 3,095 n.a. 51 Other depository institutions in the United States n .a. n.a. 24,979 24,932 140 n.a. 52 Banks in foreign countries n a. n a. 25,980 6,045 180 n.a. 53 Loans to finance agricultural production and other loans to farmers 45,792 4 4,636 11,295 10,139 17,399 17,098 54 Commercial and industrial loans 930,412 762.020 740,615 572,224 161,930 27,866 55 U.S. addressees (domicile) n.a. n a. 597,088 564,911 161,236 n.a. 56 Non-U.S. addressees (domicile) n .a. n.a. 143,527 7,313 694 n.a. 57 Acceptances of other banks 1,235 546 1,123 434 90 22 58 U.S. banks n .a. n.a. 250 249 n.a. n.a. 59 Foreign banks n .a. n a. 873 184 n.a. n.a. 60 Loans to individuals for household, family, and other personal expenditures (includes 518,758 477,666 308,402 267,310 187,293 23,062 61 Credit cards and related plans 182,066 n a. 106.654 n.a. 73,681 1,731 62 Other (includes single payment and installment) 336,692 n a. 201,748 n.a. 113,612 21,331 63 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 18,742 18 ,737 11.995 11,990 5,983 776644 64 146,461 109,900 137.395 100,835 8,283 783 65 Loans to foreign governments and official institutions n.a. n a. 88..888800 1,551 14 n.a. 66 n.a. n .a. 112288,,551155 99,283 8,269 n.a. 67 Loans for purchasing and carrying securities n.a. n a. n.a. 21,239 1,800 n.a. 68 All other loans (excludes consumer loans) n.a. n.a. n.a. 78,044 6,469 n.a. 69 Lease-financing receivables 136,493 132,094 126,421 122,021 9,530 542 70 Assets held in trading accounts 231,634 f1 230,788 f1 812 1 71 Premises and fixed assets (including capitalized leases) 71,664 44,583 21,852 5,229 72 3,210 n .a. 1,705 n.a. 1,205 301 73 Investments in unconsolidated subsidiaries and associated companies 6.880 I 6,487 I 332 62 74 Customers' liability on acceptances outstanding 9,707 1 9,467 • 236 5 75 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs .a. 19,837 n.a. 19,837 n.a. n.a. 76 Intangible assets 82,113 n .a. 68,340 n.a. 12,964 810 77 All other assets 208,845 n .a. 165,625 n.a. 38,225 4,994 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banks A65 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, June 30, 1999 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall DDoommeessttiicc ttoottaall Total Domestic Over 100 Under 100 78 Total liabilities, limited-life preferred stock, and equitv capital 5,408,335 n.a. 3,731,641 n.a. 1,407,307 269,387 79 Total liabilities 4,950,939 4,262,654 3,432,204 2,743,918 1,277,995 240,741 80 Total deposits 3,654,488 3,060,575 2,38 3,935 1,795,021 1,035,726 229,828 81 Individuals, partnerships, and corporations 3,285,338 2,848,015 2,116,851 1,679,528 960,780 207,707 82 U.S. government n.a. 5,602 n.a. 4,700 763 139 83 States and political subdivisions in the United States n.a. 133,827 n.a. 59,525 56,435 17,867 84 Commercial banks in the United States 74,286 36,726 66,052 28,492 7,212 1,022 85 Other depository institutions in the United States n a. 10,750 n.a. 5,483 3,735 1,533 86 Foreign banks, governments, and official institutions 118,630 8,583 11 3,199 8,152 425 6 87 Banks n.a. n.a. 87,095 6,770 424 n.a. 88 Governments and official institutions n.a. n.a. 31,104 1,383 2 n.a. 89 Certified and official checks 18,041 17.071 10,112 9,141 6,376 1,554 90 Total transaction accounts 687,681 395,806 227,316 64,558 91 Individuals, partnerships, and corporations 589,070 335,121 197,844 56,105 92 U.S. government 1,537 1,082 389 66 93 States and political subdivisions in the United States 41,905 18,325 17,149 6,431 94 Commercial banks in the United States 26,924 22,142 4,465 317 95 Other depository institutions in the United States 3,954 3,144 729 81 96 Foreign banks, governments, and official institutions 7,221 6,851 365 5 97 Banks n.a. 5,965 363 n.a. 98 Governments and official institutions n.a. 885 1 n.a. 99 Certified and official checks 17,071 9,141 6,376 1,554 100 Demand deposits (included in total transaction accounts) 536,194 352,037 150,554 33,603 101 Individuals, partnerships, and corporations 462,893 298,995 133,474 30,424 102 U.S. government 1,407 1,019 335 52 103 States and political subdivisions in the United States 16,746 10,748 4,821 1,177 104 Commercial banks in the United States n.a. 26,919 n.a. 22,140 4,463 315 105 Other depository institutions in the United States 3,941 3,143 721 77 106 Foreign banks, governments, and official institutions 7,218 6,849 365 4 10/ Banks n.a. 55,,996655 363 n.a. 108 Governments and official institutions n.a. 888844 1 n.a. 109 Certified and official checks 17,071 9,141 6,376 1,554 110 Total nontransaction accounts 2,372,894 1,399,215 808,409 165,269 111 Individuals, partnerships, and corporations 2,258,945 1,344,407 762,936 151,602 112 U.S. government 4,065 3,618 373 73 113 States and political subdivisions in the United States 91,922 41,200 39,286 11,436 114 Commercial banks in the United States 9,802 6,350 2,747 705 115 Other depository institutions in the United States 6,796 2,339 3,006 1,452 116 Foreign banks, governments, and official institutions 1,363 1,301 61 1 11/ Banks n.a. 804 60 n.a. 118 Governments and official institutions n.a. 497 0 n.a. 119 Federal funds purchased and securities sold under agreements to repurchase 440,243 411,062 349,861 320,680 87,395 2,986 120 Demand notes issued to the U.S. Treasury 40,507 40,507 37,111 37,111 3,252 145 121 Trading liabilities 176,903 n.a. 176,809 n.a. 94 0 122 Other borrowed money 410,378 370,068 281,145 240,834 123,714 5,519 123 Banks' liability on acceptances executed and outstanding >,775 7,392 9,534 7,152 236 5 124 Notes and debentures subordinated to deposits 73,950 n.a. 69,637 n.a. 4,300 13 125 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. 123,686 n.a. 123,686 n.a. n.a. 126 All other liabilities 144,695 n.a. 119,172 n.a. 23,279 2,245 127 Total equity capital 457,395 n.a. 299,437 n.a. 129,312 28,646 MEMO 128 Trading assets at large banks4 231,368 94,191 230,763 93,585 606 1 1 3 2 0 9 U U . . S S . . T go re v a e s r u n r m y e s n e t c a u g ri e t n ie c s y ( c d o o r m po e r s a ti t c io o n f f o ic b e li s g ) a tions • • 1 2 3 , , 5 8 7 5 5 8 • 1 2 3 , , 4 8 1 2 2 3 1 3 6 6 3 131 Securities issued by states and political subdivisions in the United States n.a. 1,228 n.a. 1,145 83 132 Mortgage-backed securities 12,346 12,220 126 n.a. 133 Other debt securities 7,511 7,390 121 134 Other trading assets 6,859 6,820 39 135 Trading assets in foreign banks 137,177 0 137,177 0 0 136 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 49,814 49,814 49,776 49,776 38 137 Total individual retirement (IRA) and Keogh plan accounts 150,910 81,403 57,457 12,051 138 Total brokered deposits 68,553 41,871 24,258 2,424 139 Fully insured brokered deposits 51.854 27,712 21,822 2,320 140 Issued in denominations of less than $100,000 99,,990022 44,,447744 44,,331166 1.113 141 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n a. 41,952 n.a. 23,238 17,507 1,207 142 Money market deposit accounts (MMDAs) 819,170 577,448 215,705 26,017 143 Other savings deposits (excluding MMDAs) 402,610 237,763 142,175 22,672 144 Total time deposits of less than $100,000 731,703 339,659 307,390 84,653 145 Total time deposits of $100,000 or more 419,412 244,346 143,138 31,927 146 All negotiable order of withdrawal (NOW) accounts 148,252 42,675 75,355 30,222 147 Number of banks ,654 8,654 167 n.a. 3,019 5,468 NOTE. Table 4.20 has been revised; it now includes data that was previously reported in 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, table 4.22, which has been discontinued. were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) The notation "n.a." indicates the lesser detail available from banks that don't have foreign "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were offices, the inapplicability of certain items to banks that have only domestic offices or the less than $100 million. (These banks file the FFIEC 034 Call Report.) absence of detail on a fully consolidated basis for banks that have foreign offices. 3. Because the domestic portion of allowances for loan and lease losses and allocated 1. All transactions between domestic and foreign offices of a bank are reported in "net due transfer risk reserves are not reported for banks with foreign offices, the components of total from" and "net due to" lines. All other lines represent transactions with parties other than the assets (domestic) do not sum to the actual total (domestic). domestic and foreign offices of each bank. Because these intraoffice transactions are nullified 4. Components of "Trading assets at large banks" are reported only by banks with either by consolidation, total assets and total liabilities for the entire bank may not equal the sum of total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their assets and liabilities respectively of the domestic and foreign offices. off-balance-sheet derivative contracts. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corporations wherever located; and IBFs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A66 Special Tables • November 1999 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 2-6, 1999 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 Weighted- Amount of loans (percent) W e a f e v f i e e g r c h a t t g i e v e d e - Am lo o a u n n s t of Aver s a i g z e e loan m av at e u r r a i g ty e 3 ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s l a la n r d s s ) of Days S c e o c l u la re te d r a b l y Callable p S re u p p b e a n je y a c m lt t y e t n o t c M om ad m e i u tm nd e e n r t LOAN RISK3 1 All commercial and industrial loans 6.78 114,562 669 445 43.5 12.9 24.9 72.7 2 Minimal risk 6.05 6,827 998 523 25.7 19.7 40.0 92.4 3 Low risk 5.90 29,813 228 40.5 11.6 45.0 4 Moderate risk 6.93 35,534 574 658 45.3 15.9 17.6 76.2 5 Other 7.55 23,701 525 439 36.9 11.2 16.1 67.2 By maturity/repricing interval6 6 Zero interval 7.77 27,286 379 483 59.2 14.4 73.7 7 Minimal risk 7.53 854 570 744 35.5 78.4 98.0 8 Low risk 7.03 2,274 355 435 37.2 13.1 3.7 90.0 9 Moderate risk 7.83 8,709 309 691 65.1 15.7 3.2 91.5 10 Other 9.10 5,426 213 464 65.8 25.2 3.1 93.0 11 Daily 6.15 47,181 1,215 211 37.3 13.4 34.0 63.2 12 Minimal risk 5.61 2,749 3,925 614 24.5 7.7 78.0 92.6 13 Low risk 5.67 18,866 6,741 150 45.5 9.1 52.2 75.1 14 Moderate risk 6.32 11,820 941 243 31.9 27.2 18.8 51.0 15 Other 6.47 8,519 1,240 108 17.2 3.4 4.5 39.4 16 2 to 30 days 6.62 18,612 1,551 479 34.1 13.9 30.0 80.0 17 Minimal risk 5.76 2,207 2,608 212 26.2 18.2 19.0 95.3 18 Low risk 5.85 4,560 3,386 154 34.4 27.4 39.3 89.6 19 Moderate risk 6.92 6,309 1,463 918 36.4 7.1 25.7 82.1 20 Other 7.45 4,329 1,088 397 30.1 8.6 29.4 68.3 21 31 to 365 days 6.88 17,983 674 721 39.1 5.1 33.7 89.2 22 Minimal risk 6.48 634 253 226 19.1 1.2 5.9 77.1 23 Low risk 6.27 3,823 958 460 22.5 2.2 42.9 94.6 24 Moderate risk 6.72 7,329 718 798 45.3 4.1 28.5 93.5 25 Other 7.69 4,939 964 983 40.1 9.3 39.8 84.9 26 More than 365 days 7.73 2,529 139 72.8 10.8 11.6 62.3 27 Minimal risk ... 6.74 370 298 18.0 13.8 7.2 86.1 28 Low risk 8.36 235 79 86.2 28.6 17.3 44.0 29 Moderate risk .. 7.52 1,007 189 78.1 4.8 6.0 70.0 30 Other 8.55 277 117 86.9 13.3 16.8 65.0 Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 9.04 2,977 3.2 189 87.7 31.4 1.8 75.5 32 100-999 8.22 12,084 3.2 133 76.8 21.2 7.3 82.4 33 1,000-9,999 7.04 34,853 3.0 50 44.1 11.7 21.4 77.7 34 10,000 or more 6.26 64,648 2.6 34 34.8 11.2 31.1 68.1 BASE RATE OF LOAN4 35 Prime7 8.72 22,415 3.3 31 73.5 23.8 1.6 80.0 36 Fed funds 5.95 30,306 2.9 12 27.0 12.0 16.4 39.6 37 Other domestic 6.20 11,896 2.4 34 16.3 30.4 46.3 78.8 38 Foreign 6.40 35,894 2.6 50 47.4 3.4 47.0 92.7 39 Other 6.90 14,051 2.9 202 44.0 7.1 4.9 76.5 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A67 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 2-6, 1999 B. Commercial and industrial loans made by all domestic banks1 WWeeiigghhtteedd-- Amount of loans (percent) Item W (( ll ee pp aa oo ff e ee vv aa ff i rr ee ee nn g cc rr cc h ee aa rr tt nn t ii gg aa e vv tt tt ee d )) ee ee 22 - AA o (( f mm mm ll d oo oo iill o aa uu ll l ii nn nn l oo a ss tt nn r oo ss s ) ff (( AA tthh vv oo d ee uu rr o ss aa ss l ii gg aa l zz a nn ee ee r dd s ll ) ss oo aa oo nn ff mm aavv aa D tt ee uu a rr y rr aa ii gg s tt yy ee 33 SS cc ee oo cc ll uu llaa rree ttee dd rr aa bb ll yy Callable p S re p u p e b a n je y a c m lt t y e t n o t cc MM oomm aadd mm ee ii uu ttmm nndd ee ee nn rr tt LOAN RISK5 1 All commercial and industrial loans 7.12 7711,,003344 437 640 46.0 19.1 13.7 76.1 6.05 55,,770055 860 627 29.7 23.6 45.3 93.2 6.16 1122,,770022 787 417 28.6 26.3 21.0 81.7 7.03 22228888,,,,222299992222 479 775533 50.1 19.1 9.3 80.5 5 Other 8.40 11111111,,,,555555556666 274 669988 59.0 17.5 14.6 81.6 By maturity/repricing interval6 8.02 22223333,,,,555533337777 336 549 53.3 16.5 2.3 69.6 7.53 888855554444 570 744 35.5 78.4 .8 98.0 7.01 2222,,,,222244449999 357 425 37.3 13.0 2.9 90.1 7.82 8888,,,,555577772222 311 686 65.0 15.5 3.2 91.3 10 Other 9.07 5555,,,,111177774444 209 428 65.7 26.1 3.1 92.7 11 Daily 6.44 22223333,,,,111166664444 624 420 40.3 27.0 26.3 72.8 5.58 22222222,,,,,,,,555555554444444488888888 4,100 662 25.7 8.3 79.1 96.7 5.81 55555555,,,,,,,,777777775555555566666666 2,423 390 30.3 29.5 38.9 72.8 6.40 88888888,,,,,,,,888888881111111100000000 728 353 42.3 36.2 17.2 59.8 15 Other 7.30 22222222,,,,,,,,444444442222222277777777 383 291 37.1 10.1 13.3 59.1 6.75 1111111111111111,,,,,,,,333333330000000099999999 1,086 677 32.6 19.8 16.0 86.8 5.68 11111111,,,,,,,,444444443333333311111111 1,777 312 38.5 28.1 27.5 92.7 5.87 22222222,,,,,,,,555555555555555555555555 2,458 244 10.7 45.6 7.3 91.3 6.96 44444444,,,,,,,,555555552222222266666666 1,213 11,,003322 31.9 8.2 8.1 86.7 20 Other 8.15 222,,,000444888 595 880088 53.2 9.0 42.2 81.5 6.82 999,,,777777999 418 895 48.0 4.3 9.7 89.1 6.47 444999000 203 273 22.5 1.6 5.2 73.6 6.27 1111,,,,888855553333 560 525 29.7 4.0 7.1 90.2 6.71 5555,,,,000011115555 559 926 47.5 3.9 8.1 93.6 25 Other 8.15 1111,,,,444411118888 361 11,,882277 70.4 5.2 23.5 81.0 Months 7.73 22,,552299 139 61 72.8 10.8 11.6 62.3 6.74 337700 298 58 18.0 13.8 7.2 86.1 8.36 235 79 60 86.2 28.6 17.3 44.0 7.52 111,,,000000777 189 59 78.1 4.8 6.0 70.0 30 Other 88..5555 222777777 117 58 86.9 13.3 16.8 65.0 Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1 99 9.05 22,,992222 3.2 192 88.4 31.6 1.3 75.4 32 100-999 8.35 1100,,665555 3.2 146 80.3 21.9 2.9 81.0 33 1,000-9,999 7.24 23,685 2.9 59 50.1 13.6 10.6 79.7 34 10,000 or more 66..4499 3333,,777722 2.6 55 28.6 20.9 20.3 72.0 BASE RATE OF LOAN4 35 Prime7 8.71 21,022 3.2 32 75.3 21.6 1.5 78.9 5.85 111111,,,555777333 2.6 21 39.5 31.5 18.5 45.3 6.19 111000,,,777444777 2.4 36 16.2 33.6 40.7 87.2 6.75 111555,,,222555111 2.9 82 36.5 5.3 14.5 84.3 39 Other 66..9900 1122,,444411 2.8 227 39.9 7.7 4.7 80.1 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A68 Special Tables • November 1999 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 2-6, 1999 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 Weighted- Amount of loans (percent) W e a f e v f i e e g r c h a t t g i e v e d e - Am lo o a u n n s t of Avera si g z e e loan m a a v t e u r r a i g ty e 3 ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n rs s ) (tho d u o s ll a a n r d s) s of Days S c e o c l u la re te d r a b l y p S re p u p e b a n je y a c m lt t y e t n o t c M om ad m e i u tm nd e e n r t LOAN RISK3 1 All commercial and industrial loans 7.00 56,251 775 579 37.4 12.8 16.3 79.8 2 Minimal risk 5.75 4,279 4,914 670 21.1 13.5 58.5 96.9 3 Low risk 5.97 10,320 2,589 372 16.8 19.5 25.3 91.3 4 Moderate risk 6.95 22,180 833 718 41.1 11.4 11.1 87.4 5 Other 8.29 8,893 387 508 50.9 12.2 18.4 82.9 By maturity/repricing interval6 6 Zero interval 7.88 17,932 604 524 47.1 9.5 2.4 65.3 7 Minimal risk 7.38 425 1,433 1,278 22.6 85.0 1.4 99.8 8 Low risk 6.69 1,743 1,305 346 31.6 9.1 3.5 91.1 9 Moderate risk 7.63 6,206 509 649 61.8 8.8 3.5 96.1 10 Other 9.19 3,606 270 415 59.1 16.1 3.9 95.7 11 Daily 6.47 18,849 657 412 29.1 16.8 32.3 82.8 12 Minimal risk 5.56 2,474 9,008 672 26.1 5.8 81.4 96.7 13 Low risk 5.74 4,417 3,296 378 12.3 14.6 50.7 90.7 14 Moderate risk 6.53 6,458 739 340 23.3 20.8 23.5 74.3 15 Other 7.20 2,261 512 286 33.3 10.4 14.2 57.1 16 2 to 30 days 6.75 9,889 1,684 695 28.5 17.1 17.0 87.3 17 Minimal risk 5.28 862 9,981 293 15.1 2.8 35.0 98.8 18 Low risk 5.82 2,462 5,448 242 9.6 46.1 7.4 91.2 19 Moderate risk 6.95 4,220 1,859 1,061 30.4 7.7 7.9 86.3 20 Other 8.15 1,873 735 718 49.0 7.4 46.1 82.1 21 31 to 365 days 6.59 8,083 1,794 799 43.8 3.3 10.5 94.4 22 Minimal risk 5.70 204 1,883 367 9.0 .0 2.3 82.9 23 Low risk 6.00 1,601 2,612 558 22.5 2.4 8.0 93.5 24 Moderate risk 6.60 4,644 2,388 945 45.2 3.3 7.7 95.1 25 Other 7.77 943 751 745 58.4 6.6 33.3 98.5 26 More than 365 days 6.92 1,174 638 6.3 7.7 84.5 27 Minimal risk ... 6.36 309 3,653 3.8 13.7 .5 98.3 28 Low risk 6.62 372 36.2 88.4 29 Moderate risk .. 7.01 501 793 66.6 2.9 6.2 86.4 30 Other 8.13 152 268 77.9 10.6 24.5 75.8 Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 8.76 1,282 3.5 87.2 36.0 1.1 85.7 32 100-999 8.18 6,895 3.3 77.0 20.4 2.4 87.9 33 1,000-9,999 7.12 19,208 2.9 45.5 11.1 11.7 79.5 34 10,000 or more 6.56 28,866 2.6 20.4 11.0 23.4 77.7 BASE RATE OF LOAN4 35 Prime7 8.71 14,530 3.3 7 73.5 14.9 1.7 78.0 36 Fed funds 5.96 7,910 2.6 16 16.5 6.2 25.6 58.1 37 Other domestic 6.02 9,889 2.3 12 10.7 35.0 44.1 90.8 38 Foreign 6.77 13,989 2.9 41 35.6 4.5 14.2 84.0 39 Other 6.63 9,933 2.8 151 30.4 4.4 4.6 82.6 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A69 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 2-6, 1999 D. Commercial and industrial loans made by small domestic banks1 Weighted- Amount of loans (percent) Weighted- Amount of Average loan average average loans size maturity3 ( l e p o f e a f r e n c c e r t n i a v t t ) e e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s l a la n r d s s ) of Days S c e o c l u la re te d r a b l y Callable p S re u p p b e a n je y a c m lt t y e t n o t c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 7.60 14,783 164 956 78.6 43.1 3.7 61.9 2 Minimal risk 6.97 1,426 248 478 55.5 54.1 8.4 82.4 3 Low risk 6.97 2,382 196 764 80.0 55.5 2.2 39.9 4 Moderate risk 7.32 6,112 969 82.8 47.2 2.8 55.3 5 Other 8.75 2,663 1,404 86.1 34.9 2.2 77.3 By maturity/repricing interval6 6 Zero interval 8.44 5,605 139 641 73.1 38.7 2.1 83.3 7 Minimal risk 7.67 429 357 436 48.3 71.9 .2 96.3 8 Low risk 8.12 505 102 695 57.0 26.5 .7 86.5 9 Moderate risk 8.31 2,366 154 802 73.4 33.1 2.5 78.9 10 Other 8.79 1,568 137 459 81.0 49.1 1.2 85.7 11 Daily 6.34 4,315 511 513 89.5 71.5 .2 28.7 12 Minimal risk 6.12 74 213 325 12.8 92.7 .0 100.0 13 Low risk 6.06 1,339 1,293 558 89.5 78.6 .0 13.9 14 Moderate risk 6.04 2,353 700 511 94.6 78.5 .1 20.0 15 Other 8.70 166 87 349 89.5 5.9 1.1 86.6 16 2 to 30 days 6.77 1,420 313 540 61.4 38.1 9.5 83.9 17 Minimal risk 6.30 568 791 352 74.0 66.5 16.1 83.5 18 Low risk 7.39 92 157 310 41.0 31.2 4.5 91.6 19 Moderate risk 7.09 306 209 616 52.6 14.7 10.5 93.0 20 Other 8.22 175 196 1,728 97.7 26.3 2.8 75.6 21 31 to 365 days 7.95 1,697 90 1,350 68.3 9.0 5.9 63.9 22 Minimal risk 7.03 286 124 205 32.1 2.7 6.8 66.9 23 Low risk 7.98 252 93 317 75.6 13.9 1.6 69.8 24 Moderate risk 8.01 371 53 681 76.4 11.3 13.0 75.4 25 Other 8.90 475 178 3,860 94.2 2.3 4.8 46.2 Months 26 More than 365 days 8.42 1,355 83 93.6 14.7 14.1 43.1 27 Minimal risk ... 8.66 61 53 89.4 14.3 14.1 24.5 28 Low risk 8.80 187 66 99.0 35.9 21.5 32.7 29 Moderate risk . . 8.03 506 108 89.6 6.7 5.8 53.8 30 Other 9.06 125 70 97.8 16.7 8.0 51.9 Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 9.28 1,640 3.0 301 89.4 28.1 1.5 67.3 32 100-999 8.65 3,760 3.0 344 86.3 24.7 3.7 68.3 33 1,000-9,999 7.75 4,478 2.9 137 69.6 24.3 5.7 80.3 34 10,000 or more 6.09 4,906 2.7 117 77.1 79.3 2.6 38.4 BASE RATE OF LOAN4 35 Prime7 8.72 6,492 3.2 79.2 36.6 1.0 80.9 36 Fed funds 5.61 3,664 2.4 32 89.2 86.1 3.2 17.6 37 Other domestic 8.22 3.1 312 78.5 17.3 2.1 46.2 38 Foreign 6.46 1,262 2.8 535 47.0 13.9 17.8 87.5 39 Other 7.95 2,508 2.7 555 77.3 20.6 5.0 70.1 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A70 Special Tables • November 1999 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 2-6, 1999 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 Weighted- Amount of loans (percent) IItteemm average loans size maturity3 ((ppeerrcceenntt))22 o ( f m d il o l l i l o a n r s s ) (tho d u o s ll a a n r d s s ) of S c e o c l u la re te d r a b l y Callable p S re u p b a je y c m t e t n o t ... , DDaayyss penalty LOAN RISK5 1 All commercial and industrial loans 6.21 43,528 5,040 159 39.4 2.9 43.1 67.3 2 Minimal risk 6.01 1,122 5,393 41 5.0 * 14.9 87.9 3 Low risk 5.71 17,110 11,257 105 49.4 .7 62.8 80.1 4 Moderate risk 6.53 7,243 2,562 333 26.6 3.3 49.7 59.5 5 Other 6.74 12,145 4,157 217 15.9 5.2 17.5 53.5 By maturity/repricing interval6 6 Zero interval 6.22 3,748 1,943 116 96.2 1.6 .8 99.8 7 Minimal risk * * * * * * * * 8 Low risk 8.65 25 231 1,233 24.6 25.9 74.1 80.3 9 Moderate risk 8.80 137 246 1,305 68.4 25.5 * 99.8 10 Other 9.73 252 391 1,131 68.5 7.3 3.9 98.5 11 Daily 5.87 24,016 14,325 48 34.4 .3 41.3 53.9 12 Minimal risk 6.07 201 2,545 2 9.1 * 64.0 40.2 13 Low risk 5.60 13,110 30,994 68 52.1 .1 58.1 76.1 14 Moderate risk 6.09 3,010 6,531 2 1.3 .6 23.5 25.3 15 Other 6.15 6,092 11,319 41 9.2 .7 1.0 31.6 16 2 to 30 days 6.42 7,303 4,611 179 36.4 4.8 51.2 69.4 17 Minimal risk * * * * * * * * 18 Low risk 5.82 2,006 6,517 39 64.7 4.2 79.9 87.5 19 Moderate risk 6.82 1,782 3,076 629 47.8 4.5 68.9 70.4 20 Other 6.82 2,281 4,251 30 9.4 8.3 18.5 56.4 21 31 to 365 days 6.95 8,204 2,519 505 28.5 6.1 61.8 89.3 22 Minimal risk 6.50 144 1,645 65 7.8 * 7.8 89.3 23 Low risk 6.28 1,970 2,893 398 15.8 .5 76.5 98.7 24 Moderate risk 6.75 2,314 1,882 517 40.6 4.6 72.0 93.3 25 Other 7.50 3,521 2,929 617 27.9 11.0 46.2 86.5 Months 26 More than 365 days * * * * * * * * 27 Minimal risk * * * * * * * * 28 Low risk * * * * * * * * 29 Moderate risk * * * * * * * * 30 Other * * * * * * * * Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 8.22 55 3.6 24 46.0 22.4 29.0 82.9 32 100-999 7.30 1,429 3.2 29 50.9 15.3 39.7 93.4 33 1,000-9,999 6.62 11,167 3.1 29 31.6 7.5 44.3 73.4 34 10,000 or more 6.01 30,877 2.7 12 41.6 .6 42.8 63.9 BASE RATE OF LOAN4 35 Prime7 8.85 1,393 3.5 21 47.1 57.2 3.0 96.6 36 Fed funds 6.02 18,733 3.2 6 19.3 * 15.1 36.0 37 Other domestic 6.28 1,149 3.3 12 17.3 * 98.7 * 38 Foreign 6.14 20,644 2.5 27 55.4 2.0 71.0 98.9 39 Other 6.96 1,610 3.8 7 75.9 3.0 6.2 48.8 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A71 NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions 5. A complete description of these risk categories is available from the Banking and made during the first full business week in the mid-month of each quarter. The authorized Money Market Statistics Section, Mail Stop 81, Board of Governors of the Federal Reserve panel size for the survey is 348 domestically chartered commercial banks and fifty U.S. System, Washington, DC 20551. The category "Moderate risk" includes the average loan, branches and agencies of foreign banks. The sample data are used to estimate the terms of under average economic conditions, at the typical lender. The category "Other" includes loans loans extended during that week at all domestic commercial banks and all U.S. branches and rated "acceptable" as well as special mention or classified loans. The weighted-average risk agencies of foreign banks. Note that the terms on loans extended during the survey week may ratings published for loans in rows 31-39 are calculated by assigning a value of "1" to differ from those extended during other weeks of the quarter. The estimates reported here are minimal risk loans; "2" to low risk loans; "3" to moderate risk loans, "4" to acceptable risk not intended to measure the average terms on all business loans in bank portfolios. loans; and "5" to special mention and classified loans. These values are weighted by loan 1. As of December 31, 1996, assets of most of the large banks were at least $7.0 billion. amount and exclude loans with no risk rating. Some of the loans in lines 1,6, 11, 16, 21, 26, Median total assets for all insured banks were roughly $62 million. Assets at all U.S. branches and 31-39 are not rated for risk. and agencies averaged 1.3 billion. 6. The maturity/repricing interval measures the period from the date the loan is made until it 2. Effective (compounded) annual interest rates are calculated from the stated rate and first may reprice or it matures. For floating-rate loans that are subject to repricing at any other terms of the loans and weighted by loan amount. The standard error of the loan rate for time—such as many prime-based loans—the maturity/repricing interval is zero. For floating-rate all commercial and industrial loans in the current survey (line 1, column 1) is 0.18 percentage loans that have a scheduled repricing interval, the maturity/repricing interval measures the number point. The chances are about two out of three that the average rate shown would differ by less of days between the date the loan is made and the date on which it is next scheduled to reprice. For than this amount from the average rate that would be found by a complete survey of the loans having rates that remain fixed until the loan matures (fixed-rate loans), the maturity/repricing universe of all banks. interval measures the number of days between the date the loan is made and the date on which it 3. Average maturities are weighted by loan amount and exclude loans with no stated matures. Loans that reprice daily mature or reprice on the business day after they are made. Owing maturities. to weekends and holidays, such loans may have maturity/repricing intervals in excess of one day; 4. The most common base pricing rate is that used to price the largest dollar volume of such loans are not included in the "2 to 30 day" category. loans. Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or 7. For the current survey, the average reported prime rate, weighted by the amount of "reference" rate); the federal funds rate; domestic money market rates other than the prime loans priced relative to a prime base rate, was 7.77 percent for all banks; 7.75 percent for rate and the federal funds rate; foreign money market rates; and other base rates not included large domestic banks, 7.83 percent for small domestic banks; and 7.75 percent for U.S. in the foregoing classifications. branches and agencies of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A72 Special Tables • November 1999 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19991—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u t F d a i s l n g I o B n F ly s 1 Total assets4 841,308 169,408 676,042 141,545 29,948 5,014 51,781 6,259 2 Claims on nonrelated parties 689,833 82,266 553,311 68,425 28,449 1,949 50,370 4,764 3 Cash and balances due from depository institutions 69,450 35,844 64,686 33,560 716 154 2,846 1,813 4 Cash items in process of collection and unposted debits 2,431 0 2,346 0 5 0 17 0 5 Currency and coin (U.S. and foreign) 17 n.a. 12 n.a. 1 n.a. 0 n.a. 6 Balances with depository institutions in United States 4411,,779999 1133,,991199 3399,,775533 13,112 593 93 853 571 7 U.S. branches and agencies of other foreign banks (including IBFs) 36,352 13,126 34,839 12,374 386 93 774 527 8 Other depository institutions in United States (including IBFs) . . . 55,,444477 793 4,915 738 207 0 79 44 y Balances with banks in foreign countries and with foreign central banks 24,192 21,925 22,017 20,448 104 61 1,691 1,242 10 Foreign branches of U.S. banks 1,620 1,479 1,589 1,454 0 0 0 0 n Banks in home country and home-country central banks 33,,990033 3,507 3,793 3,431 11 11 14 14 12 All other banks in foreign countries and foreign central banks .... 1188,,666688 16,939 16,635 15,563 93 50 1,677 1,228 13 Balances with Federal Reserve Banks 1,012 n.a. 558 n.a. 13 n.a. 285 n.a. 14 Total securities and loans 430,664 38,393 327,396 27,424 26,753 1,692 35,630 2,645 15 Total securities, book value 111,870 4,950 102,934 4,270 1,276 514 6,565 127 16 U.S. Treasury 21,882 n.a. 20,638 n.a. 72 n.a. 1,117 n.a. 17 Obligations of U.S. government agencies and corporations 43,923 n.a. 41,564 n.a. 205 n.a. 1,731 n.a. 18 Other bonds, notes, debentures, and corporate stock (including state and local securities) 46,064 4,950 40,733 4,270 999 514 3,717 127 19 Securities of foreign governmental units 11,957 2,746 11,531 2,565 309 122 45 45 20 All Other 34,108 2,204 29,201 1,706 690 391 3,672 82 21 Federal funds sold and securities purchased under agreements to resell 75,766 6,047 70,083 5,639 402 68 4,010 269 22 U.S. branches and agencies of other foreign banks 8,814 1,654 7,967 1,586 291 68 169 0 23 Commercial banks in United States 13,825 63 12,596 53 84 0 338 0 24 Other 53,127 4,331 49,519 4,000 27 0 3,503 269 25 Total loans, gross 319,052 33,476 224,649 23,185 25,505 1,179 29,077 2,519 26 LESS: Unearned income on loans 258 33 187 31 27 1 12 0 27 EQUALS: Loans, net 318,794 33,443 224,462 23,154 25,478 1,178 29,065 2,518 Total loans, gross, by category 28 Real estate loans 17,028 110 11,393 108 3,209 0 413 0 29 Loans to depository institutions 27,236 16,429 16,093 8,890 1,365 854 2,760 2,435 30 Commercial banks in United States (including IBFs) 6,217 2,385 4,645 1,785 921 412 69 45 31 U.S. branches and agencies of other foreign banks 4,353 2,231 2,968 1,672 893 385 59 35 32 Other commercial banks in United States 1,865 154 1.678 113 28 28 11 10 33 Other depository institutions in United States (including IBFs) 66 0 48 0 0 0 3 0 34 Banks in foreign countries 20,952 14,044 11,400 7,105 444 441 2,687 2,390 35 Foreign branches of U.S. banks 1,057 494 1,008 455 0 0 0 0 36 Other banks in foreign countries 19,896 13,550 10,392 6,650 444 441 2,687 2,390 37 Loans to other financial institutions 51,870 1,052 40,609 914 1,268 0 4,266 5 38 Commercial and industrial loans 203,714 13,586 139,678 11,139 19,405 301 20,637 73 39 U.S. addressees (domicile) 164,536 250 111,915 250 17,800 0 18,105 0 40 Non U.S. addressees (domicile) 39,178 13,336 27,763 10,889 1,605 301 2,533 73 41 Acceptances of other banks 259 8 77 7 11 0 163 0 42 U.S. banks 20 0 12 0 3 0 0 0 43 Foreign banks 239 8 65 7 8 0 163 0 44 Loans to foreign governments and official institutions (including foreign central banks) 33,,445544 2,221 2,768 2,072 162 25 87 5 45 Loans for purchasing or carrying securities (secured and unsecured) . . . 88,,881188 19 8,478 19 17 0 25 0 46 All other loans 5,958 51 5,332 36 68 0 234 0 47 Lease financing receivables (net of unearned income) 715 0 221 0 0 0 493 0 48 U.S. addressees (domicile) 715 0 221 0 0 0 493 0 49 Non U.S. addressees (domicile) 0 0 0 0 0 0 0 0 50 Trading assets 82,497 835 63,837 834 74 1 6,328 0 51 All other assets 31,457 1,146 27,309 968 504 34 1,556 37 52 Customers' liabilities on acceptances outstanding 1,435 n.a. 1,065 n.a. 133 n.a. 160 n.a. 53 U.S. addressees (domicile) 627 n.a. 466 n.a. 131 n.a. 20 n.a. 54 Non-U.S. addressees (domicile) 808 n.a. 598 n.a. 2 n.a. 140 n.a. 55 Other assets including other claims on nonrelated parties 30,022 1,146 26,244 968 371 34 1,396 37 56 Net due from related depository institutions5 151,474 87,142 122,731 73,119 1,498 3,066 1,412 1,495 57 Net due from head office and other related depository institutions . . . 115511,,447744 n.a. 112222,,773311 n.a. 11,,449988 n.a. 1,412 n.a. 58 Net due from establishing entity, head office, and other related depository institutions5 n.a. 87,142 n.a. 73,119 n.a. 3,066 n.a. 1,495 59 Total liabilities4 841,308 169,408 676,042 141,545 29,948 5,014 51,781 6,259 60 Liabilities to nonrelated parties 691,696 146,592 575,783 122,598 11,828 4,797 38,456 5,024 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
U.S. Branches and Agencies A73 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1999'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s 61 Total deposits and credit balances 300,324 105,735 245,458 90,613 4.875 1,28 8 17,422 3,054 62 Individuals, partnerships, and corporations 229,357 12,267 181,962 7,034 2,280 207 15,917 113 63 U.S. addressees (domicile) 213,360 192 171,667 102 782 0 15,8 08 90 64 Non-U.S. addressees (domicile) 15,997 12,075 10,295 6,933 1,499 207 109 23 65 Commercial banks in United States (including IBFs) 36,389 12,176 32,509 11,704 461 83 1,036 232 66 U.S. branches and agencies of other foreign banks 12,768 10,505 12,195 10,224 0 28 245 107 67 Other commercial banks in United States 23,620 1,671 20,314 1,481 461 55 791 125 68 Banks in foreign countries 8,667 55,036 8,268 51,014 21 234 151 1,479 69 Foreign branches of U.S. banks 1,509 1,556 1,508 1,362 0 3 0 181 70 Other banks in foreign countries 7,158 53,480 6,759 49,652 21 231 151 1,299 71 Foreign governments and official institutions (including foreign central banks) 8,892 26,221 8,208 20,831 7 765 305 1,227 72 All other deposits and credit balances 16,839 34 14,354 29 2,101 0 13 2 73 Certified and official checks 180 157 5 1 74 Transaction accounts and credit balances (excluding IBFs) 8,047 6,329 278 216 75 Individuals, partnerships, and corporations 6,378 4.988 248 211 76 U.S. addressees (domicile) 4,241 3,764 133 204 77 Non-U.S. addressees (domicile) 2,137 1,224 115 7 78 Commercial banks in United States (including IBFs) 139 134 1 0 79 U.S. branches and agencies of other foreign banks 105 103 0 0 80 Other commercial banks in United States 34 31 0 0 81 Banks in foreign countries 725 494 21 1 82 Foreign branches of U.S. banks 2 1 0 0 83 Other banks in foreign countries 723 493 21 1 84 Foreign governments and official institutions (including foreign central banks) 352 296 2 2 85 All other deposits and credit balances 273 260 2 1 86 Certified and official checks 180 157 5 1 87 Demand deposits (included in transaction accounts and credit balances) 7,374 5,893 221 214 88 Individuals, partnerships, and corporations 5,988 4,821 192 209 89 U.S. addressees (domicile) 4,159 3,707 18 202 90 Non-U.S. addressees (domicile) 1,829 1,115 75 7 91 Commercial banks in United States (including IBFs) 60 n.a. 56 n.a. 1 n.a. 0 n.a. 92 U.S. branches and agencies of other foreign banks 30 28 0 0 93 Other commercial banks in United States 30 28 0 0 94 Banks in foreign countries 701 471 21 1 95 Foreign branches of U.S. banks 2 1 0 0 96 Other banks in foreign countries 699 470 21 1 97 Foreign governments and official institutions (including foreign central banks) 334 288 2 2 98 All other deposits and credit balances 111 99 1 1 99 Certified and official checks 180 157 5 1 100 Nontransaction accounts (including MMDAs, excluding IBFs) 292,277 239,128 4,597 17,206 101 Individuals, partnerships, and corporations 222,979 176,974 2,033 15,706 102 U.S. addressees (domicile) 209,119 167,903 649 15,604 103 Non-U.S. addressees (domicile) 13,860 9,071 1,384 102 104 Commercial banks in United States (including IBFs) 36,250 32,375 460 1,036 105 U.S. branches and agencies of other foreign banks 12,663 12,092 0 245 106 Other commercial banks in United States 23,586 20,283 460 791 107 Banks in foreign countries 7,943 7,773 0 150 108 Foreign branches of U.S. banks 1,507 1,507 0 0 109 Other banks in foreign countries 6,435 6,266 0 150 110 Foreign governments and official institutions (including foreign central banks) 8,540 7,912 5 303 111 All other deposits and credit balances 16,566 14,094 2,099 12 112 IBF deposit liabilities 105,735 90,613 11,,22 88 3,054 113 Individuals, partnerships, and corporations 12,267 7,034 07 113 114 U.S. addressees (domicile) 192 102 0 90 115 Non-U.S. addressees (domicile) 12,075 6,933 207 23 116 Commercial banks in United States (including IBFs) 12,176 11,704 83 232 117 U.S. branches and agencies of other foreign banks 10,505 10,224 28 107 118 Other commercial banks in United States n.a. 1,671 n a. 1,481 n a. 55 n.a. 125 119 Banks in foreign countries 55,036 51,014 234 1,479 120 Foreign branches of U.S. banks 1,556 1,362 3 181 121 Other banks in foreign countries 53.480 49.652 231 1.299 122 Foreign governments and official institutions (including foreign central banks) 26.221 20.831 765 1.227 123 All other deposits and credit balances 34 29 0 2 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A74 Special Tables • November 1999 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19991—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s 124 Federal funds purchased and securities sold under agreements to repurchase 134,852 17,205 126,009 13,957 1,217 275 4,428 1,244 125 U.S. branches and agencies of other foreign banks 13,148 3,997 11,078 3,182 614 230 1,073 350 176 Other commercial banks in United States 8,135 1,632 6,342 475 447 20 237 87 127 Other 113,569 11,577 108,588 10,301 156 25 3,118 807 128 Other borrowed money 74,504 22,435 57,253 16,925 4,012 3,204 6,195 704 129 Owed to nonrelated commercial banks in United States (including IBFs) 12,028 4,108 10,032 3,294 645 462 471 11 BO Owed to U.S. offices of nonrelated U.S. banks 5,979 446 5,556 400 72 41 110 0 131 Owed to U.S. branches and agencies of nonrelated foreign banks 6,049 3,663 4,476 2,894 572 421 361 11 132 Owed to nonrelated banks in foreign countries 15,105 13,073 11,034 9,205 2,521 2,465 282 224 133 Owed to foreign branches of nonrelated U.S. banks 733 677 527 479 198 198 0 0 134 Owed to foreign offices of nonrelated foreign banks 14,372 12,396 10,507 8,726 2,324 2,267 282 224 135 Owed to others 47,371 5,254 36,187 4,426 847 277 5,442 469 136 All other liabilities 76,281 1,217 56,450 1,103 435 30 7,357 22 137 Branch or agency liability on acceptances executed and outstanding 2,002 n.a. 1,539 n.a. 134 n.a . 238 n. a. 138 Trading liabilities 49,746 57 33,725 56 83 0 6,106 0 139 Other liabilities to nonrelated parties 24,532 1,161 21,186 1,047 218 30 1,013 22 140 Net due to related depository institutions5 149,612 22,816 100,259 18,947 18,120 217 13,325 1,235 141 Net due to head office and other related depository institutions5 .... 149,612 n. a. 100,259 n.a. 18,120 n.a. 13,325 n.a. 142 Net due to establishing entity, head office, and other related depository institutions5 n.a. 22,816 n.a. 18,947 n.a. 217 n.a. 1,235 MEMO 143 Non-interest-bearing balances with commercial banks in United States 1,911 0 1,684 0 65 0 14 0 144 Holding of own acceptances included in commercial and 145 Comm in e d r u c s i t a r l i a a l n l d o a i n n s d ustrial loans with remaining maturity of one year 2,139 1,557 • 254 • 250 < • or less (excluding those in nonaccrual status) 111,886 68,942 10,574 15,497 146 Predetermined interest rates 73,190 n a. 43,775 n a. 4,882 n a. 13,508 n a. 147 Floating interest rates 3388,,669966 25,167 5,692 1,989 148 Commercial and industrial loans with remaining maturity of more than one year (excluding those in nonaccrual status) 90,678 69,880 8,760 5,103 149 Predetermined interest rates 23,035 18,854 1,777 872 150 Floating interest rates 67,643 51,027 6,983 4,230 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
U.S. Branches and Agencies A75 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19991—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s 111155551111 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ((((eeeexxxxcccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss)))) 292,302 n.a. 240,123 n.a. 4,422 n.a. 17,678 n.a. 111155552222 TTTTiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 287,877 n.a. 236,625 n.a. 4,374 n.a. 17,096 n.a. 111155553333 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 4,424 n.a. 3,498 n.a. 48 n.a. 582 n.a. All states2 New York California Illinois inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s 111155554444 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 25,126 n.a. 21,839 n.a. 1,424 n.a. 1,258 n.a. 111155555555 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 392 0 202 0 79 0 32 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of either because the item is not an eligible IBF asset or liability or because that level of detail is Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first not reported for IBFs. From December 1981 through September 1985, IBF data were used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From included in all applicable items reported. November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 4. Total assets and total liabilities include net balances, if any, due from or owed to related monthly FR 886a report. Aggregate data from that report were available through the Federal banking institutions in the United States and in foreign countries (see note 5). On the former Reserve monthly statistical release G.l 1, last issued on July 10, 1980. Data in this table and in monthly branch and agency report, available through the G.ll monthly statistical release, the G. 11 tables are not strictly comparable because of differences in reporting panels and in gross balances were included in total assets and total liabilities. Therefore, total asset and total definitions of balance sheet items. liability figures in this table are not comparable to those in the G. 11 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item. file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
76 Federal Reserve Bulletin • November 1999 Index to Statistical Tables References are to pages A3-A75 although the prefix A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Federal credit agencies, 30 Assets and liabilities (See also Foreigners) Federal finance Commercial banks, 15-21, 64—65 Debt subject to statutory limitation, and types and ownership Domestic finance companies, 32, 33 of gross debt, 27 Federal Reserve Banks, 10 Receipts and outlays, 25, 26 Foreign banks, U.S. branches and agencies, 72-75 Treasury financing of surplus, or deficit, 25 Foreign-related institutions, 20 Treasury operating balance, 25 Automobiles Federal Financing Bank, 30 Consumer credit, 36 Federal funds, 23, 25 Production, 44,45 Federal Home Loan Banks, 30 Federal Home Loan Mortgage Corporation, 30, 34, 35 BANKERS acceptances, 5, 10, 22, 23 Federal Housing Administration, 30, 34, 35 Bankers balances, 15-21, 72-75. (See also Foreigners) Federal Land Banks, 35 Bonds (See also U.S. government securities) Federal National Mortgage Association, 30, 34, 35 New issues, 31 Federal Reserve Banks Rates, 23 Condition statement, 10 Business activity, nonfinancial, 42 Discount rates (See Interest rates) Business loans (See Commercial and industrial loans) U.S. government securities held, 5, 10, 11, 27 Federal Reserve credit, 5, 6, 10, 12 CAPACITY utilization, 43 Federal Reserve notes, 10 Capital accounts Federally sponsored credit agencies, 30 Commercial banks, 15-21, 64—65 Finance companies Federal Reserve Banks, 10 Assets and liabilities, 32 Certificates of deposit, 23 Business credit, 33 Commercial and industrial loans Loans, 36 Commercial banks, 15-21, 64-65, 66-71 Paper, 22, 23 Weekly reporting banks, 17, 18 Float, 5 Commercial banks Flow of funds, 37—41 Assets and liabilities, 15-21, 64-65 Foreign branches, U.S. banks and agencies, 71, 72-75 Commercial and industrial loans, 15-21, 64-65, 66-71 Foreign currency operations, 10 Consumer loans held, by type and terms, 36, 66-71 Foreign deposits in U.S. banks, 5 Real estate mortgages held, by holder and property, 35 Foreign exchange rates, 62 Terms of lending, 64—65 Foreign-related institutions, 20 Time and savings deposits, 4 Foreign trade, 51 Commercial paper, 22, 23, 32 Foreigners Condition statements (See Assets and liabilities) Claims on, 52, 55, 56, 57, 59 Construction, 42,46 Liabilities to, 51, 52, 53, 58, 60, 61 Consumer credit, 36 Consumer prices, 42 GOLD Consumption expenditures, 48, 49 Certificate account, 10 Corporations Stock, 5, 51 Profits and their distribution, 32 Government National Mortgage Association, 30, 34, 35 Security issues, 31, 61 Gross domestic product, 48, 49 Cost of living (See Consumer prices) Credit unions, 36 HOUSING, new and existing units, 46 Currency in circulation, 5, 13 Customer credit, stock market, 24 INCOME, personal and national, 42, 48, 49 DEBT (See specific types of debt or securities) Industrial production, 42, 44 Demand deposits, 15-21 Insurance companies, 27, 35 Depository institutions Interest rates Reserve requirements, 8 Bonds, 23 Reserves and related items, 4, 5, 6, 12, 64-65 Commercial banks, 66-71 Deposits (See also specific types) Consumer credit, 36 Commercial banks, 4, 15-21, 64—65 Federal Reserve Banks, 7 Federal Reserve Banks, 5, 10 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, 66-71 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 Euro, 62 Investments (See also specific types) Commercial banks, 4, 15-21, 66-71 FARM mortgage loans, 35 Federal Reserve Banks, 10, 11 Federal agency obligations, 5, 9, 10, 11, 28, 29 Financial institutions, 35 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
All LABOR force, 42 Savings institutions, 35, 36, 37—41 Life insurance companies (See Insurance companies) Savings deposits (See Time and savings deposits) Loans (See also specific types) Securities (See also specific types) Commercial banks, 15—21, 64—65, 66-71 Federal and federally sponsored credit agencies, 30 Federal Reserve Banks, 5, 6, 7, 10, 11 Foreign transactions, 60 Financial institutions, 35 New issues, 31 Insured or guaranteed by United States, 34, 35 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, reserve requirements, 8 Stock market, selected statistics, 24 Mining production, 45 Stocks (See also Securities) Mobile homes shipped, 46 New issues, 31 Monetary and credit aggregates, 4, 12 Prices, 24 Money and capital market rates, 23 Money stock measures and components, 4, 13 Student Loan Marketing Association, 30 Mortgages (See Real estate loans) TAX receipts, federal, 26 Mutual funds, 13, 32 Mutual savings banks (See Thrift institutions) Thrift institutions, 4. (See also Credit unions and Savings institutions) NATIONAL defense outlays, 26 Time and savings deposits, 4, 13, 15-21, 64—65 National income, 48 Trade, foreign, 51 Treasury cash, Treasury currency, 5 OPEN market transactions, 9 Treasury deposits, 5, 10, 25 Treasury operating balance, 25 PERSONAL income, 49 UNEMPLOYMENT, 42 Prices U.S. government balances Consumer and producer, 42, 47 Commercial bank holdings, 15-21 Stock market, 24 Treasury deposits at Reserve Banks, 5, 10, 25 Prime rate, 22, 66-71 U.S. government securities Producer prices, 42, 47 Bank holdings, 15-21, 27 Production, 42, 44 Dealer transactions, positions, and financing, 29 Profits, corporate, 32 Federal Reserve Bank holdings, 5, 10, 11, 27 Foreign and international holdings and REAL estate loans transactions, 10, 27, 61 Banks, 15-21, 35 Open market transactions, 9 Terms, yields, and activity, 34 Outstanding, by type and holder, 27, 28 Type of holder and property mortgaged, 35 Rates, 23 Reserve requirements, 8 U.S. international transactions, 50-62 Reserves Utilities, production, 45 Commercial banks, 15-21 Depository institutions, 4, 5, 6, 12 VETERANS Administration, 34, 35 Federal Reserve Banks, 10 U.S. reserve assets, 51 WEEKLY reporting banks, 17, 18 Residential mortgage loans, 34, 35 Wholesale (producer) prices, 42, 47 Retail credit and retail sales, 36,42 YIELDS (See Interest rates) SAVING Flow of funds, 37^1 National income accounts, 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
78 Federal Reserve Bulletin • November 1999 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD W. KELLEY, JR. ROGER W. FERGUSON, JR., Vice Chairman LAURENCE H. MEYER OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE LYNN S. FOX, Assistant to the Board KAREN H. JOHNSON, Director DONALD J. WINN, Assistant to the Board DAVID H. HOWARD, Deputy Director WINTHROP P. HAMBLEY, Deputy Congressional Liaison VINCENT R. REINHART, Deputy Director BOB STAHLY MOORE, Special Assistant to the Board THOMAS A. CONNORS, Deputy Director DIANE E. WERNEKE, Special Assistant to the Board DALE W. HENDERSON, Associate Director DONALD B. ADAMS, Senior Adviser RICHARD T. FREEMAN, Assistant Director LEGAL DIVISION WILLIAM L. HELKIE, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel STEVEN B. KAMIN, Assistant Director SCOTT G. ALVAREZ, Associate General Counsel RALPH W. TRYON, Assistant Director RICHARD M. ASHTON, Associate General Counsel OLIVER IRELAND, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS KATHLEEN M. O'DAY, Associate General Counsel MICHAEL J. PRELL, Director KATHERINE H. WHEATLEY, Assistant General Counsel EDWARD C. ETTIN, Deputy Director DAVID J. STOCKTON, Deputy Director OFFICE OF THE SECRETARY WILLIAM R. JONES, Associate Director MYRON L. KWAST, Associate Director JENNIFER J. JOHNSON, Secretary PATRICK M. PARKINSON, Associate Director ROBERT DEV. FRIERSON, Associate Secretary THOMAS D. SIMPSON, Associate Director BARBARA R. LOWREY, Associate Secretary and Ombudsman LAWRENCE SLIFMAN, Associate Director MARTHA S. SCANLON, Deputy Associate Director DIVISION OF BANKING STEPHEN D. OLINER, Assistant Director STEPHEN A. RHOADES, Assistant Director SUPERVISION AND REGULATION JANICE SHACK-MARQUEZ, Assistant Director RICHARD SPILLENKOTHEN, Director CHARLES S. STRUCKMEYER, Assistant Director STEPHEN C. SCHEMERING, Deputy Director ALICE PATRICIA WHITE, Assistant Director HERBERT A. BIERN, Associate Director JOYCE K. ZICKLER, Assistant Director ROGER T. COLE, Associate Director GLENN B. CANNER, Senior Adviser WILLIAM A. RYBACK, Associate Director DAVID S. JONES, Senior Adviser GERALD A. EDWARDS, JR., Deputy Associate Director STEPHEN M. HOFFMAN, JR., Deputy Associate Director DIVISION OF MONETARY AFFAIRS JAMES V. HOUPT, Deputy Associate Director DONALD L. KOHN, Director JACK P. JENNINGS, Deputy Associate Director DAVID E. LINDSEY, Deputy Director MICHAEL G. MARTINSON, Deputy Associate Director BRIAN F. MADIGAN, Associate Director SIDNEY M. SUSSAN, Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director MOLLY S. WASSOM, Deputy Associate Director WILLIAM C. WHITESELL, Assistant Director HOWARD A. AMER, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board NORAH M. BARGER, Assistant Director BETSY CROSS, Assistant Director DIVISION OF CONSUMER RICHARD A. SMALL, Assistant Director AND COMMUNITY AFFAIRS WILLIAM C. SCHNEIDER, JR., Project Director, National Information Center DOLORES S. SMITH, Director GLENN E. LONEY, Deputy Director SANDRA F. BRAUNSTEIN, Assistant Director MAUREEN P. ENGLISH, Assistant Director ADRIENNE D. HURT, Assistant Director IRENE SHAWN MCNULTY, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
79 EDWARD M. GRAMLICH OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS STEPHEN R. MALPHRUS, Staff Director LOUISE L. ROSEMAN, Director JOHN R. WEIS, Adviser PAUL W. BETTGE, Assistant Director KENNETH D. BUCKLEY, Assistant Director MANAGEMENT DIVISION JACK DENNIS, JR., Assistant Director JOSEPH H. HAYES, JR., Assistant Director STEPHEN J. CLARK, Associate Director, Finance Function JEFFREY C. MARQUARDT, Assistant Director DARRELL R. PAULEY, Associate Director, Human Resources MARSHA REIDHILL, Assistant Director Function JEFF STEHM, Assistant Director SHEILA CLARK, EEO Programs Director DIVISION OF SUPPORT SERVICES OFFICE OF THE INSPECTOR GENERAL BARRY R. SNYDER, Inspector General ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DONALD L. ROBINSON, Deputy Inspector General DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION TECHNOLOGY RICHARD C. STEVENS, Director MARIANNE M. EMERSON, Deputy Director TILLENA G. CLARK, Assistant Director MAUREEN HANNAN, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director EDWARD T. MULRENIN, Assistant Director DAY W. RADEBAUGH, JR., Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
80 Federal Reserve Bulletin • November 1999 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman EDWARD G. BOEHNE EDWARD W. KELLEY, JR. MICHAEL H. MOSKOW ROGER W. FERGUSON, JR. LAURENCE H. MEYER GARY H. STERN EDWARD M. GRAMLICH ROBERT D. MCTEER, JR. ALTERNATE MEMBERS J. ALFRED BROADDUS, JR. JERRY L. JORDAN JAMIE B. STEWART, JR. JACK GUYNN ROBERT T. PARRY STAFF DONALD L. KOHN, Secretary and Economist DAVID H. HOWARD, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary WILLIAM C. HUNTER, Associate Economist LYNN S. FOX, Assistant Secretary RICHARD W. LANG, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID E. LINDSEY, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel ARTHUR J. ROLNICK, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel HARVEY ROSENBLUM, Associate Economist KAREN H. JOHNSON, Economist LAWRENCE SLIFMAN, Associate Economist MICHAEL J. PRELL, Economist DAVID J. STOCKTON, Associate Economist CHRISTINE M. CUMMING, Associate Economist PETER R. FISHER, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL ROBERT W. GILLESPIE, President KENNETH D. LEWIS,Vice President LAWRENCE K. FISH, First District NORMAN R. BOBINS, Seventh District DOUGLAS A. WARNER III, Second District KATIE S. WINCHESTER, Eighth District RONALD L. HANKEY, Third District RICHARD A. ZONA, Ninth District ROBERT W. GILLESPIE, Fourth District C. Q. CHANDLER, Tenth District KENNETH D. LEWIS, Fifth District RICHARD W. EVANS, JR., Eleventh District STEPHEN A. HANSEL, Sixth District WALTER A. DODS, JR., Twelfth District JAMES ANNABLE, Co-Secretary WILLIAM J. KORSVIK, Co-Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
81 CONSUMER ADVISORY COUNCIL YVONNE S. SPARKS STRAUTHER, St. Louis, Missouri, Chairman DWIGHT GOLANN, Boston, Massachusetts, Vice Chairman LAUREN ANDERSON, New Orleans, Louisiana JOHN C. LAMB, Sacramento, California WALTER J. BOYER, Garland, Texas ANNE S. LI, Trenton, New Jersey WAYNE-KENT A. BRADSHAW, Los Angeles, California MARTHA W. MILLER, Greensboro, North Carolina MALCOLM M. BUSH, Chicago, Illinois DANIEL W. MORTON, Columbus, Ohio MARY ELLEN DOMEIER, New ULM, Minnesota CAROL J. PARRY, New York, New York JEREMY D. EISLER, Biloxi, Mississippi PHILIP PRICE, JR., Philadelphia, Pennsylvania ROBERT F. ELLIOT, Prospect Heights, Illinois MARTA RAMOS, San Juan, Puerto Rico JOHN C. GAMBOA, San Francisco, California DAVID L. RAMP, St. Paul, Minnesota ROSE M. GARCIA, Las Cruces, New Mexico MARILYN ROSS, Omaha, Nebraska VINCENT J. GIBLIN, West Caldwell, New Jersey ROBERT G. SCHWEMM, Lexington, Kentucky KARLA S. IRVINE, Cincinnati, Ohio DAVID J. SHIRK, Eugene, Oregon WILLIE M. JONES, Boston, Massachusetts GAIL M. SMALL, Lame Deer, Montana JANET C. KOEHLER, Ponte Vedra, Florida GARY S. WASHINGTON, Chicago, Illinois GWENN S. KYZER, Allen, Texas ROBERT L. WYNN, II, Madison, Wisconsin THRIFT INSTITUTIONS ADVISORY COUNCIL WILLIAM A. FITZGERALD, Omaha, Nebraska, President F. WELLER MEYER, Falls Church, Virginia, Vice President GAROLD R. BASE, Piano, Texas BABETTE E. HEIMBUCH, Santa Monica, California JAMES C. BLAINE, Raleigh, North Carolina THOMAS S. JOHNSON, New York, New York DAVID A. BOCHNOWSKI, Munster, Indiana WILLIAM A. LONGBRAKE, Seattle, Washington LAWRENCE L. BOUDREAUX III, New Orleans, Louisiana KATHLEEN E. MARINANGEL, McHenry, Illinois RICHARD P. COUGHLIN, Stoneham, Massachusetts ANTHONY J. POPP, Marietta, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
82 Federal Reserve Bulletin • November 1999 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Rates for subscribers outside the United States are as follows MS-127, Board of Governors of the Federal Reserve System, and include additional air mail costs: Washington, DC 20551, or telephone (202) 452-3244, or FAX Federal Reserve Regulatory Service, $250.00 per year. (202) 728-5886. You may also use the publications order Each Handbook, $90.00 per year. form available on the Board's World Wide Web site FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL (http://www.federalreserve.gov). When a charge is indicated, pay- COMPUTERS. CD-ROM; updated monthly. ment should accompany request and be made payable to the Standalone PC. $300 per year. Board of Governors of the Federal Reserve System or may be Network, maximum 1 concurrent user. $300 per year. ordered via Mastercard, Visa, or American Express. Payment from Network, maximum 10 concurrent users. $750 per year. foreign residents should be drawn on a U.S. bank. Network, maximum 50 concurrent users. $2,000 per year. Network, maximum 100 concurrent users. $3,000 per year. Subscribers outside the United States should add $50 to cover BOOKS AND MISCELLANEOUS PUBLICATIONS additional airmail costs. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. THE FEDERAL RESERVE ACT AND OTHER STATUTORY PROVISIONS 1994. 157 pp. AFFECTING THE FEDERAL RESERVE SYSTEM, as amended ANNUAL REPORT, 1998. through October 1998. 723 pp. $20.00 each. ANNUAL REPORT: BUDGET REVIEW, 1999. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 COUNTRY MODEL, May 1984. 590 pp. $14.50 each. each in the United States, its possessions, Canada, and INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. Mexico. Elsewhere, $35.00 per year or $3.00 each. 440 pp. $9.00 each. ANNUAL STATISTICAL DIGEST: period covered, release date, num- FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. ber of pages, and price. December 1986. 264 pp. $10.00 each. 1981 October 1982 239 pp. $ 6.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1982 December 1983 266 pp. $ 7.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1983 October 1984 264 pp. $11.50 RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A 1984 October 1985 254 pp. $12.50 JOINT CENTRAL BANK RESEARCH CONFERENCE. 1996. 1985 October 1986 231 pp. $15.00 578 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 1992 December 1993 215 pp. $25.00 1993 December 1994 281 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages 1994 December 1995 190 pp. $25.00 Consumer Handbook to Credit Protection Laws 1990-95 November 1996 404 pp. $25.00 A Guide to Business Credit for Women, Minorities, and Small Businesses Series on the Structure of the Federal Reserve System SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF The Board of Governors of the Federal Reserve System CHARTS. Weekly. $30.00 per year or $.70 each in the United The Federal Open Market Committee States, its possessions, Canada, and Mexico. Elsewhere, Federal Reserve Bank Board of Directors $35.00 per year or $.80 each. Federal Reserve Banks 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 $5.00. How to File a Consumer Complaint about a Bank GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 each. Making Sense of Savings FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated SHOP: The Card You Pick Can Save You Money monthly. (Requests must be prepaid.) Welcome to the Federal Reserve Consumer and Community Affairs Handbook. $75.00 per year. When Your Home is on the Line: What You Should Know Monetary Policy and Reserve Requirements Handbook. $75.00 About Home Equity Lines of Credit per year. Keys to Vehicle Leasing Securities Credit Transactions Handbook. $75.00 per year. Looking for the Best Mortgage The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. Four vols. (Contains all four Handbooks plus substantial additional material.) $200.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
83 STAFF STUDIES: Only Summaries Printed in the 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- BULLETIN GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. Studies and papers on economic and financial subjects that are of 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by general interest. Requests to obtain single copies of the full text or James T. Fergus and John L. Goodman, Jr. July 1993. to be added to the mailing list for the series may be sent to 20 pp. Publications Services. 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, print. by Stephen A. Rhoades. July 1994. 37 pp. 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. Donald Savage. February 1990. 12 pp. Lowrey, December 1997. 17 pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by DENCE, by Gregory Elliehausen, April 1998. 35 pp. Gregory E. Elliehausen and John D. Wolken. September 1990. 35 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
84 Federal Reserve Bulletin • November 1999 Maps of the Federal Reserve System LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts 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
85 1-A 2-B 3-C 4-D 5-E ME Pittsburgh Baltimore MD M iX CT \ I / NH • Cincinnati Buffalo MA> CT BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G S-H TN- • Nashville P- KY AL Birmingham- lL SV/ ille ^ S ,' I • GA r^—™ L\ Jucksonv i lie AR • Memphis New Orleans hL Lit • t A le Y Miami ATLANTA CHICAGO ST. LOUIS 9-1 MT f ND MN • Helena m MINNEAPOLIS 10-J 12-L WY MO Oklahoma Cit\ OK KANSAS CITY 11-K S.ui Antonio* DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
86 Federal Reserve Bulletin • November 1999 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 William O. Taylor Paul M. Connolly NEW YORK* 10045 John C. Whitehead William J. McDonough Peter G. Peterson Jamie B. Stewart, Jr. Buffalo 14240 Bal Dixit Carl W. Turnipseed1 PHILADELPHIA 19105 Joan Carter Edward G. Boehne Charisse R. Lillie William H. Stone, Jr. CLEVELAND* 44101 G. Watts Humphrey, Jr. Jerry L. Jordan David H. Hoag Sandra Pianalto Cincinnati 45201 George C. Juilfs Barbara B.Henshaw Pittsburgh 15230 John T. Ryan, III Robert B. Schaub RICHMOND* 23219 Claudine B. Malone J. Alfred Broaddus, Jr. Jeremiah J. Sheehan Walter A. Varvel Baltimore 21203 Daniel R. Baker William J. Tignanelli1 Charlotte 28230 Joan H. Zimmerman Dan M. Bechter1 ATLANTA 30303 John F. Wieland Jack Guynn Paula Lovell Patrick K. Barron James M. McKee Birmingham 35283 V. Larkin Martin Andre T. Anderson Jacksonville 32231 Marsha G. Rydberg Robert J. Slack Miami 33152 Mark T. Sodders James T. Curry III Nashville 37203 N. Whitney Johns Melvyn K. Purcell1 New Orleans 70161 R. Glenn Pumpelly Robert J. Musso1 CHICAGO* 60690 Lester H. McKeever, Jr. Michael H. Moskow Arthur C. Martinez William C. Conrad Detroit 48231 Florine Mark David R. Allardice1 ST. LOUIS 63166 Susan S. Elliott William Poole Charles W. Mueller W. LeGrande Rives Little Rock 72203 Diana T. Hueter Robert A. Hopkins Louisville 40232 Roger Reynolds Thomas A. Boone Memphis 38101 Mike P. Sturdivant, Jr. Martha Perine Beard MINNEAPOLIS 55480 David A. Koch Gary H. Stern James J. Howard Colleen K. Strand Helena 59601 Thomas O. Markle Samuel H. Gane KANSAS CITY 64198 Jo Marie Dancik Thomas M. Hoenig Terrence P. Dunn Richard K. Rasdall Denver 80217 Kathryn A. Paul Carl M. Gambs1 Oklahoma City 73125 Larry W. Brummett Kelly J. Dubbert Omaha 68102 Gladys Styles Johnston Steven D. Evans DALLAS 75201 Roger R. Hemminghaus Robert D. McTeer, Jr. James A. Martin Helen E. Holcomb El Paso 79999 Patricia Z. Holland-Branch Sammie C. Clay Houston 77252 Edward O. Gay lord Robert Smith, III1 San Antonio 78295 Patty P. Mueller James L. Stull1 SAN FRANCISCO 94120 Gary G. Michael Robert T. Parry Nelson C. Rising John F. Moore Los Angeles 90051 Lonnie Kane Mark L. Mullinix1 Portland 97208 Nancy Wilgenbusch Raymond H. Laurence1 Salt Lake City 84125 Barbara L. Wilson Andrea P. Wolcott Seattle 98124 Richard R. Sonstelie Gordon R. G. Werkema2 •Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; 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
87 Publications of Interest FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS The Federal Reserve Board publishes a series of Shop . . . The Card You Pick Can Save You Money brochures covering individual credit laws and topics, is designed to help consumers comparison shop when as pictured below. looking for a credit card. It contains the results of the Five brochures on the mortgage process are avail- Federal Reserve Board's survey of the terms of credit able: A Consumer's Guide to Mortgage Lock-Ins, card plans offered by credit card issuers throughout A Consumer's Guide to Mortgage Refinancings, A the United States. Because the terms can affect the Consumer's Guide to Mortgage Settlement Costs, amount an individual pays for using a credit card, the Home Mortgages: Understanding the Process and booklet lists the annual percentage rate (APR), annual Your Right to Fair Lending, and Looking for the Best fee, grace period, type of pricing (fixed or variable Mortgage: Shop, Compare, Negotiate. These bro- rate), and a telephone number for each card issuer chures were prepared in conjunction with the Federal surveyed. A Guide to Business Credit for Women, Home Loan Bank Board and in consultation with Minorities, and Small Businesses covers the credit other federal agencies and trade and consumer application process and points out sources of technigroups. The Board also publishes the Consumer cal assistance for small business loans. Handbook to Credit Protection Laws, a complete Up to 100 copies of consumer publications are guide to consumer credit protections. This forty-four- available free of charge from Publications Services, page booklet explains how to shop and obtain credit, Mail Stop 127, Board of Governors of the Federal how to maintain a good credit rating, and how to Reserve System, Washington, DC 20551. dispute unfair credit transactions. A Consumer's Quids to Mortgage Lock-ins 4k 4k V&JJA I A JB SHOP Business Credit for Women, Minorities, and Small Businesses •Af ** The Card You Pick Can Save You Money Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
88 Federal Reserve Bulletin • November 1999 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 CD-ROM 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 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 is the Board's list of check or money order payable to the Board of Goverforeign margin stocks. nors of the Federal Reserve System. Orders should be The Consumer and Community Affairs Handbook addressed to Publications Services, mail stop 127, Board contains Regulations B, C, E, M, Z, AA, BB, and DD, of Governors of the Federal Reserve System, Washingand associated materials. ton, DC 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS Guide to the Flow of Funds Accounts explains in detail dures as seasonal adjustment, extrapolation, and how the U.S. financial flow accounts are prepared. The interpolation. accounts, which are compiled by the Division of The balance of the Guide contains explanatory tables Research and Statistics, are published in the Board's corresponding to the tables of financial flows data that quarterly Z.l statistical release, "Flow of Funds appeared in the September 1992 Z.l release. These Accounts, Flows and Outstandings." The Guide updates tables give, for each data series, the source of the data or and replaces Introduction to Flow of Funds, published the methods of calculation, along with annual data for 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
Cite this document
Federal Reserve (1999, October 31). Federal Reserve Bulletin, 1999-11. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_199911
@misc{wtfs_bulletin_199911,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1999-11},
year = {1999},
month = {Oct},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_199911},
note = {Retrieved via When the Fed Speaks corpus}
}